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<SEC-DOCUMENT>0000833040-11-000005.txt : 20110217
<SEC-HEADER>0000833040-11-000005.hdr.sgml : 20110217
<ACCEPTANCE-DATETIME>20110217124716
ACCESSION NUMBER:		0000833040-11-000005
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20110325
FILED AS OF DATE:		20110217
DATE AS OF CHANGE:		20110217
EFFECTIVENESS DATE:		20110217

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FRANKLIN UNIVERSAL TRUST
		CENTRAL INDEX KEY:			0000833040
		IRS NUMBER:				943077602
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-05569
		FILM NUMBER:		11620082

	BUSINESS ADDRESS:	
		STREET 1:		ONE FRANKLIN PARKWAY
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94403-1906
		BUSINESS PHONE:		650-312-2000

	MAIL ADDRESS:	
		STREET 1:		ONE FRANKLIN PARKWAY
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94403-1906
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>futproxy_2011.htm
<TEXT>

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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">SCHEDULE 14A INFORMATION</FONT></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Proxy Statement Pursuant to Section 14(a)</FONT></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">of the Securities Exchange Act of 1934</FONT></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">(Amendment No.)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Filed by the Registrant&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [X]</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Filed by a party other than the Registrant&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ ]</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Check the appropriate box:</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">[ ]&nbsp;&nbsp; Preliminary Proxy Statement</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">[X]&nbsp;&nbsp; Definitive Proxy Statement</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">[ ]&nbsp;&nbsp; Definitive Additional Materials</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">[ ]&nbsp;&nbsp; Soliciting Material Pursuant to Section.240-14a-12</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">FRANKLIN UNIVERSAL TRUST</FONT></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">(Name of Registrant as Specified in its Charter)</FONT></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">FRANKLIN UNIVERSAL TRUST</FONT></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">(Name of Person(s) Filing Proxy Statement)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Payment of Filing Fee (Check the appropriate box):</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">[X] No fee required</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp; Title of each class of securities to which transaction applies:</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp; Aggregate number of securities to which transaction applies:</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp; Per unit price or other underlying value of transaction computed</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pursuant to Exchange Act Rule 0-11 (set forth the amount on which the</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; filing fee is calculated and state how it was determined):</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp; (4)&nbsp;&nbsp; Proposed maximum aggregate value of transaction:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp; (5)&nbsp;&nbsp; Total fee paid:</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">[ ] Fee paid previously with preliminary material.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">[ ] Check box if any part of the fee is offset as provided by Exchange Act Rule</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">0-11(a)(2) and identify the filing for which the offsetting fee was paid</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">previously. Identify the previous filing by registration statement number, or</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">the Form or Schedule and the date of its filing.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp; 1) Amount Previously Paid:</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp; 2) Form, Schedule or Registration Statement No.:</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp; 3) Filing Party:</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp; 4) Date Filed:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">[GRAPHIC OMITTED]</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 15pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">FRANKLIN UNIVERSAL TRUST</FONT></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 15pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">IMPORTANT SHAREHOLDER INFORMATION</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">We have enclosed important information about the Annual Shareholders&#146; Meeting (the &#147;Meeting&#148;) of Franklin Universal Trust (the &#147;Fund&#148;) scheduled for Friday, March 25, 2011, at 2:00 p.m., Pacific Time. These materials discuss the proposal to be voted on at the Meeting.&nbsp; </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">These materials also contain the Notice of Meeting, proxy statement and proxy card. A proxy card is, in essence, a ballot. When you vote your proxy, it tells us how you wish to vote on important issues relating to the Fund. If you complete, sign and return the proxy card, we&#146;ll vote it as you indicated. If you simply sign, date and return the enclosed proxy card, but do not specify a vote on the proposal, your proxy will be voted </FONT><B><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">FOR</FONT></B><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> the election of the nominees to the position of Trustee.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Regardless of the number of shares you own, your vote is very important.&nbsp; We urge you to vote </FONT></B><B><U><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">FOR</FONT></U></B><B><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> your Board&#146;s nominees by completing, signing and dating the enclosed proxy card and returning it in the enclosed postage-paid envelope.&nbsp; When shareholders return their proxy cards promptly, the Fund may be able to save money by not having to conduct additional mailings. Returning your proxy card does not preclude you from attending the Meeting or later changing your vote prior to its being cast.&nbsp; Only your latest dated proxy card will count.</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">If you have any questions, please call Fund Information at (800) DIAL BEN&#174;/(800) 342-5236.</FONT></P>
<P style="MARGIN: 0in 0in 6pt 17pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face=TimesNewRomanPS></FONT>&nbsp;</P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 15pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT></B>&nbsp;</P>
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<P style="BORDER-BOTTOM: medium none; TEXT-ALIGN: center; BORDER-LEFT: medium none; PADDING-BOTTOM: 0in; MARGIN: 0in 0in 15pt; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; BORDER-TOP: medium none; BORDER-RIGHT: medium none; PADDING-TOP: 0in"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">TELEPHONE AND INTERNET VOTING</FONT></B></P>
<P style="BORDER-BOTTOM: medium none; BORDER-LEFT: medium none; PADDING-BOTTOM: 0in; MARGIN: 0in 0in 0pt; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; BORDER-TOP: medium none; BORDER-RIGHT: medium none; PADDING-TOP: 0in"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">For your convenience, you may be able to vote by telephone or through the Internet, 24 hours a day. If your account is eligible, separate instructions are enclosed.</FONT></B></P>
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<B><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">FRANKLIN UNIVERSAL TRUST</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 15pt"><B><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">NOTICE OF 2011 ANNUAL SHAREHOLDERS&#146; MEETING</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The Annual Shareholders&#146; Meeting (the &#147;Meeting&#148;) of Franklin Universal Trust (the &#147;Fund&#148;) will be held at the Fund&#146;s offices, One Franklin Parkway, San Mateo, California 94403, on Friday, March 25, 2011, at 2:00 p.m., Pacific Time.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">During the Meeting, shareholders of the Fund will vote on the following:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 0.5in"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&#149;&nbsp;The election of a Board of Trustees of the Fund; and</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 0.5in"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&#149;&nbsp;such other matters as may properly come before the Meeting.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The Board of Trustees has fixed January 21, 2011 as the record date for the determination of shareholders entitled to vote at the Meeting.</FONT><FONT style="FONT-SIZE: 10pt" lang=EN-US face=Arial> </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Whether or not you plan to attend the Meeting, and regardless of the number of shares you own, we urge you to vote </FONT><B><U><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">FOR</FONT></U></B><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> your Board&#146;s nominees by promptly completing, signing, dating and returning the enclosed proxy card.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 228pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">By Order of the Board of Trustees,</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/Karen L. Skidmore</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Karen L. Skidmore</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Vice President &amp; Secretary</FONT></I></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">San Mateo, California</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Dated: February 18, 2011</FONT></P>
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<DIV style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 1pt; PADDING-LEFT: 4pt; PADDING-RIGHT: 4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 1pt">
<P style="BORDER-BOTTOM: medium none; BORDER-LEFT: medium none; PADDING-BOTTOM: 0in; MARGIN: 0in 0in 6pt; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; BORDER-TOP: medium none; BORDER-RIGHT: medium none; PADDING-TOP: 0in"><B><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL SHAREHOLDERS&#146; MEETING TO BE HELD ON MARCH 25, 2011.&nbsp; The Fund&#146;s Notice of 2011 Annual Shareholders&#146; Meeting, Proxy Statement, and form of proxy are available on the Internet at </FONT></B><B><U><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">www.proxyonline.com/FranklinTempleton</FONT></U></B><B><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">. The form of Proxy on the Internet site cannot be used to cast your vote.</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 15pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">FRANKLIN UNIVERSAL TRUST</FONT></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 15pt"><B><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">PROXY STATEMENT</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 14.5pt; FONT-STYLE: normal; FONT-SIZE: 12pt; FONT-WEIGHT: normal" lang=EN-US color=black face="Courier New">&#61557;</FONT><B><I><FONT style="LINE-HEIGHT: 14.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> INFORMATION ABOUT VOTING</FONT></I></B></P>
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<P style="MARGIN: 0in 0in 6pt"><B><I><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Who is asking for my vote?</FONT></I></B></P>
<P style="MARGIN: 0in 0in 6pt 0.7pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">In this proxy statement for the Annual Shareholders&#146; Meeting (the &#147;Meeting&#148;) of Franklin Universal Trust (the &#147;Fund&#148;), the Fund&#146;s Board of Trustees (the &#147;Board&#148; or the &#147;Trustees&#148;) are </FONT><FONT style="LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">unanimously</FONT><FONT style="LETTER-SPACING: 0.25pt; FONT-SIZE: 11pt" lang=EN-US color=black face="Courier New"> </FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">asking you to vote </FONT><B><U><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">FOR</FONT></U></B><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> t</FONT><FONT style="LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">he election of </FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Cou
rier New">your Board&#146;s </FONT><FONT style="LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">nine </FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">nominees </FONT><FONT style="LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">to the position of &shy;Trustee</FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> (the &#147;Proposal&#148;) by promptly completing, signing, dating and returning the enclosed proxy card. </FONT></P>
<P style="MARGIN: 6pt 0in"><B><I><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">How do I ensure that my vote is accurately recorded?</FONT></I></B></P>
<P style="MARGIN: 6pt 0in"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">You may attend the Meeting and vote in person or you may complete and return the enclosed proxy card. If you are eligible to vote by telephone or through the Internet, separate instructions are enclosed. The Fund&#146;s management needs you to return the proxy card so that they can count your shares as present at the Meeting.&nbsp;&nbsp;&nbsp; </FONT></P>
<P style="MARGIN: 6pt 0in"><B><I><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Who is eligible to vote?</FONT></I></B></P>
<P style="MARGIN: 6pt 0in"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Shareholders of record at the close of &shy;business on January 21, 2011, are entitled to be present and to vote at the Meeting or any adjournment of the Meeting. Each share of record is entitled to one vote (and a proportionate fractional vote for each fractional share) on each matter presented at the Meeting. The Notice of Meeting, the proxy card, and the proxy statement were first mailed to shareholders of record on or about February 18, 2011.</FONT></P>
<P style="MARGIN: 6pt 0in"><B><I><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">How will my proxy card be voted?</FONT></I></B></P>
<P style="MARGIN: 6pt 0in"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Proxy cards that are properly signed, dated and received at or prior to the Meeting will be voted as specified. If you specify a vote for the Proposal, your proxy will be voted as you indicate. If you simply sign, date and return the proxy card, but don&#146;t specify a vote on the Proposal, your shares will be voted </FONT><B><U><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">FOR</FONT></U></B><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> the election of the Fund&#146;s nine nominees for Trustee. &nbsp;</FONT></P>
<P style="MARGIN: 6pt 0in"><B><I><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">May I revoke my proxy?</FONT></I></B></P>
<P style="MARGIN: 6pt 0in"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">You may revoke your proxy at any time before it is voted by forwarding a written revocation or a later-dated proxy to the Fund that is received by the Fund at or prior to the Meeting, or by attending the Meeting and voting in &shy;person.</FONT></P>
<P style="MARGIN: 6pt 0in"><B><I><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">What if my shares are held in a bank or brokerage account?</FONT></I></B></P>
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<P style="MARGIN: 6pt 0in"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">If your shares are held by your bank or broker, then in order to vote in person at the Meeting, you will need to obtain a &#147;Legal Proxy&#148; from your bank or broker and present it to the Inspector of Election at the Meeting. Also, in order to revoke your proxy, you may need to forward your written revocation or a later-dated proxy card to your broker rather than to the Fund.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 14.5pt; FONT-STYLE: normal; FONT-SIZE: 12pt; FONT-WEIGHT: normal" lang=EN-US color=black face="Courier New">&#61557;</FONT><B><I><FONT style="LINE-HEIGHT: 14.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> THE </FONT></I></B><B><FONT style="LINE-HEIGHT: 14.5pt; FONT-STYLE: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">PROPOSAL: ELECTION OF TRUSTEES</FONT></B></P>
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<P style="MARGIN: 0in 0in 6pt"><B><I><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Who are the Fund&#146;s Nominees?</FONT></I></B></P>
<P style="MARGIN: 0in 0in 12pt 1pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Fund&#146;s nominees and the current Trustees of the Fund are </FONT><FONT style="LETTER-SPACING: -0.5pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">Harris J. Ashton, Sam Ginn, Edith E. Holiday, </FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">Charles B. Johnson, Rupert H. Johnson, Jr., J. Michael Luttig, Frank A. Olson, Larry D. Thompson and John B. Wilson.&nbsp; As described more fully below, these nominees </FONT><FONT style="LETTER-SPACING: -0.15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">have significant experience managing investment vehicles.&nbsp; Many of the Fund&#146;s nominees have been Trustees since the Fund was launched in 1988, and are also on the Boards of other open-end and closed-end Franklin Templeton funds.&nbsp; They have had experience as senior officers and directors of major business corporations, and some have also held senior positions in state and federal
 government.</FONT></P>
<P style="MARGIN: 0in 0in 6pt"><B><I><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">How are Fund nominees selected?</FONT></I></B></P>
<P style="MARGIN: 0in 0in 6pt"><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">T</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: -0.75pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">he Board has a Nominating Committee</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> consisting of Harris J. Ashton, Sam Ginn, Edith E. Holiday, J. Michael Luttig, Frank A. Olson, Larry D. Thompson and John B. Wilson, none of whom is an &#147;interested person&#148; of the Fund as defined by the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;). </FONT><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Trustees who are not interested persons of the Fund are referred to as &#147;Independent Trustees,&#148;</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="C
ourier New"> and Trustees who are interested persons of the Fund are referred to as &#147;Interested Trustees.&#148;</FONT></P>
<P style="MARGIN: 0in 0in 6pt"><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The Nominating Committee is responsible for selecting candidates to serve as Trustees and recommending such candidates (a) for selection and nomination as Independent Trustees by the incumbent Independent Trustees and the full Board; and (b) for selection and nomination as Interested Trustees by the full Board. In considering a candidate&#146;s qualifications, the </FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Nominating Committee generally considers the potential candidate&#146;s educational background,</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> business or professional experience, and reputation. In addition, the Nominating Committee has established as minimum qualifications for Board membership as an Independe
nt Trustee </FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">(1) that such candidate be independent from relationships with the Fund&#146;s investment manager</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> and other principal service providers both within the terms and the spirit of the statutory </FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">independence requirements specified under the 1940 Act and the rules thereunder; (2) that such candidate demonstrate</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> an ability and willingness to make the considerable time commitment, including personal attendance at Board meetings, believed necessary to his or her function as an effective Board member; and (3) that such candida
te have no continuing relationship as a director, </FONT>


<FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">officer or board member of any U.S. registered investment company other than those within the Franklin Templeton Investments fund complex or a closed-end business development company primarily investing in non-public entities. The Nominating Committee has not adopted any specific policy on the issue of diversity, but will take this into account, among other factors, in its consideration of new candidates to the Board.</FONT></P>
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<P style="MARGIN: 0in 0in 6pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">When the Board has or expects to have a vacancy, the Nominating Committee receives and reviews information on individuals qualified to be recommended to the full Board as nominees for election as Trustees, including any recommendations by &#147;Qualifying Fund Shareholders&#148; (as defined below).&nbsp; Such individuals are evaluated based upon the criteria described above. To date, the Nominating Committee has been able to identify, and expects to continue to be able to identify, from its own resources an ample number of qualified candidates. The Nominating Committee will, however, review recommendations from Qualifying Fund Shareholders to fill vacancies on the Board if these recommendations are submitted in writing and addressed to the Nominating Committee at the Fund&#146;s offices and are presented with appropriate background material concerning the candidate that demonstrates his o
r her ability to serve as a Trustee, including as an Independent Trustee, of the Fund.&nbsp; A Qualifying Fund Shareholder is a shareholder who (i) has continuously owned of record, or beneficially through a financial intermediary, shares of the Fund having a net asset value of not less than two hundred and fifty thousand dollars ($250,000) during the twenty-four month period prior to submitting the recommendation; and (ii) provides a written notice to the Nominating Committee containing the following information: (a) the name and address of the Qualifying Fund Shareholder making the recommendation; (b) the number of shares of the Fund which are owned of record and beneficially by such Qualifying Fund Shareholder and the length of time that such shares have been so owned by the Qualifying Fund Shareholder; (c) a description of all arrangements and understandings between such Qualifying Fund Shareholder and any other person or persons (naming such person or persons) pursuant to which the recommendation is bei
ng made; (d) the name, age, date of birth, business address and residence address of the person or persons being recommended; (e) such other information regarding each person recommended by such Qualifying Fund Shareholder as would be required to be included in a proxy statement filed pursuant to the proxy rules of the U.S. Securities and Exchange Commission (&#147;SEC&#148;) had the nominee been nominated by the Board; (f) whether the shareholder making the recommendation believes the person recommended would or would not be an &#147;interested person&#148; of the Fund, as defined in the 1940 Act; and (g) the written consent of each person recommended to serve as a Trustee of the Fund if so nominated and elected/appointed.</FONT></P>
<P style="MARGIN: 6pt 0in"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The Nominating Committee may amend these procedures from time to time, including the procedures relating to the evaluation of nominees and the </FONT>


<FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">process for submitting recommendations to the Nominating Committee.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Board has adopted and approved a formal written charter for the Nominating Committee. A copy of the charter is attached hereto as &#147;Appendix A.&#148;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">What is the Background of the Fund nominees?</FONT></I></B></P>
<P style="MARGIN: 6pt 0in"><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: -0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Harris J. Ashton, Sam Ginn, Edith E. Holiday, </FONT><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Charles B. Johnson, Rupert H. Johnson, Jr., J. Michael Luttig, Frank A. Olson, Larry D. Thompson and John B. Wilson have</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> </FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">been nominated to be Trustees of the Fund, to hold office until the next Annual Shareholders&#146;</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> M</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: -0.75pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">eeting, and until their su
ccessors are duly elected and qualified to serve. Among the nominees,</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> </FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Charles B. Johnson and Rupert H. Johnson, Jr. are deemed to be &#147;interested</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> p</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">ersons&#148; of the Fund for purposes of the 1940 Act.&nbsp; All of the nominees are currently members of the Board and have been previously elected by shareholders.&nbsp; </FONT><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">In addition, all of the nominees are directors and/or trustees of other investment companies within the Franklin
 Templeton Investments fund complex.</FONT></P>
<P style="MARGIN: 6pt 0in"><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: -0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Certain Interested Trustees of the Fund hold director and/or officer positions with Franklin Resources, Inc.</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> </FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">(&#147;Resources&#148;) and its affiliates. Resources is a &shy;publicly owned holding company, the principal</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> shareholders of which are Charles B. Johnson and Rupert H. Johnson, Jr., who owned </FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: -0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">approximately 16.7% and 16.5%, respectively, of its outstanding shares as of December 31, 
2010</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">. </FONT><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">The shares deemed to be beneficially owned by Charles B. Johnson include certain shares held by two private charitable foundations, of which he disclaims beneficial ownership.&nbsp; The shares deemed to be beneficially owned by Rupert H. Johnson, Jr. include certain shares held by a private charitable foundation or by his spouse, of which he disclaims beneficial ownership.</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> Resources, a global investment management organization operating as Franklin Templeton Investments, is primarily engaged, through its various subsidiaries, in providing investment management, share distribution, transfer agent and administrative services to a family of investment companies. Resources is a New 
York Stock Exchange, Inc. (&#147;NYSE&#148;) listed holding company (NYSE: BEN). Charles B. Johnson, Chairman of the Board and Trustee of the Fund, and Rupert H. Johnson, Jr., Trustee and Senior Vice President of the Fund, are brothers.</FONT></P>
<P style="MARGIN: 6pt 0in"><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Each nominee is currently available and has consented to serve if elected. If any of the nominees should become unavailable, the designated proxy holders will vote in their discretion for another person or persons who may be nominated as Trustees.</FONT></P>
<P style="MARGIN: 6pt 0in"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">Information on the Fund&#146;s officers and trustees appears below including information on the business activities of trustees during the past five years and beyond. In addition to personal qualities, such as integrity, in considering candidates for the Board, the Nominating Committee seeks to </FONT>


<FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">find persons of good reputation whose experience and background evidences that such person has the ability to comprehend, discuss and critically analyze materials and issues presented in exercising judgments and reaching informed conclusions relevant to fulfillment of a Fund Trustee's duties and fiduciary obligations. Information on the business activities of the nominees and other Trustees during the past five years and beyond appears below and it is believed that the specific background of each Trustee evidences such ability and is appropriate to his or her serving on the Fund's Board. As indicated, Harris J. Ashton, Frank A. Olson and Sam Ginn have each served as chief executive officers of New York Stock Exchange listed public corporations; Larry D. Thompson and Edith E. Holiday each have legal backgrounds, including high level legal positions with departments of the U.S. government; John B. Wilson has served as chief operatin
g officer of a New York Stock Exchange listed public corporation, as well as chief financial officer of a NASDAQ listed public corporation; J. Michael Luttig has fifteen years of judicial experience as a Federal Appeals Court Judge; and Charles B. Johnson and Rupert H. Johnson, Jr. are high ranking executive officers of Franklin Templeton Investments.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="MARGIN: 6pt 0in"><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Listed below, for each nominee, is his or her name, year of birth and address, as well as position and length of service with the Fund, a brief description of recent professional experience, the number of portfolios in the Franklin Templeton Investments fund complex that he or she oversees, </FONT><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">and other directorships held.</FONT></P>
<P style="MARGIN: 0in 0in 2pt 17pt"><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">&nbsp;&nbsp; </FONT></P>
<P style="MARGIN: 0in 0in 6pt 17pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face=TimesNewRomanPS></FONT>&nbsp;</P>
<H1 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: left; TEXT-INDENT: 0.25in; MARGIN: 0in 0in 0pt" align=left><B><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 10pt" face="Arial Narrow">Nominees for Independent Trustee</FONT></B></H1>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Name, Year of Birth and Address</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Length of Time Served</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 8pt" face="Courier New">Number of Portfolios in Fund Complex Overseen by Board Member*</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Other Directorships Held</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Harris J. Ashton (1932)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 1988</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">130</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Bar-S Foods (meat packing company) (1981-2010).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Director of various companies; and </FONT><B><FONT style="FONT-SIZE: 9pt" face="Courier New">formerly</FONT></B><FONT style="FONT-SIZE: 9pt" face="Courier New">, Director, RBC Holdings, Inc. (bank holding company) (until 2002); and President, Chief Executive Officer and Chairman of the Board, General Host Corporation (nursery and craft centers) (until 1998).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Sam Ginn (1937)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" vAlign=top width="20%"> <H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: center; MARGIN: 0in"><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 9pt; FONT-WEIGHT: normal" face="Courier New">Trustee</FONT></H2></TD>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 2007</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">106</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">ICO Global Communications (Holdings) Limited (satellite company).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Private investor; and </FONT><B><FONT style="FONT-SIZE: 9pt" face="Courier New">formerly,</FONT></B><FONT style="FONT-SIZE: 9pt" face="Courier New"> Chairman of the Board, Vodafone AirTouch, PLC (wireless company); Chairman of the Board and Chief Executive Officer, AirTouch Communications (cellular communications) (1993-1998) and Pacific Telesis Group (telephone holding company) (1988-1994). </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Name, Year of Birth and Address</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Position</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Length of Time Served</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 8pt" face="Courier New">Number of Portfolios in Fund Complex Overseen by Board Member*</FONT></B></P>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BACKGROUND: #dfdfdf; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" width="27%">
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Other Directorships Held</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Edith E. Holiday (1952)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Trustee</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 2004</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">130</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Hess Corporation (exploration and refining of oil and gas), H.J. Heinz Company (processed foods and allied products), RTI International Metals, Inc. (manufacture and distribution of titanium), Canadian National Railway (railroad) and White Mountains Insurance Group, Ltd. (holding company).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Director or Trustee of various companies and trusts; and </FONT><B><FONT style="FONT-SIZE: 9pt" face="Courier New">formerly</FONT></B><FONT style="FONT-SIZE: 9pt" face="Courier New">, Assistant to the President of the United States and Secretary of the Cabinet (1990-1993); General Counsel to the United States Treasury Department (1989-1990); and Counselor to the Secretary and Assistant Secretary for Public Affairs and Public Liaison-United States Treasury Department (1988-1989).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">J. Michael Luttig (1954)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Trustee</FONT></P>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" vAlign=top width="17%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 2009</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">130</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Boeing Capital Corporation (aircraft financing).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Executive Vice President, General Counsel and member of Executive Council, The Boeing Company; and </FONT><B><FONT style="FONT-SIZE: 9pt" face="Courier New">formerly</FONT></B><FONT style="FONT-SIZE: 9pt" face="Courier New">, Federal Appeals Court Judge, U.S. Court of Appeals for the Fourth Circuit (1991-2006).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Frank A. Olson (1932)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Trustee</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 2005</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">130</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Hess Corporation (exploration and refining of oil and gas.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Chairman Emeritus, The Hertz Corporation (car rental) (since 2000) (Chairman of the Board (1980-2000) and Chief Executive Officer (1977-1999)); and </FONT><B><FONT style="FONT-SIZE: 9pt" face="Courier New">formerly</FONT></B><FONT style="FONT-SIZE: 9pt" face="Courier New">, Chairman of the Board, President and Chief Executive Officer, UAL Corporation (airlines).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 9pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 6pt 17pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face=TimesNewRomanPS></FONT>&nbsp;</P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Name, Year of Birth and Address</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Position</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Length of Time Served</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 8pt" face="Courier New">Number of Portfolios in Fund Complex Overseen by Board Member*</FONT></B></P>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BACKGROUND: #dfdfdf; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" width="27%">
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Other Directorships Held</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: char; FONT-SIZE: 9pt" face="Courier New">Larry D. Thompson (1945)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: char; FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: char; FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Trustee</FONT></P>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" vAlign=top width="17%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: char; FONT-SIZE: 9pt" face="Courier New">Since 2007</FONT></P>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" vAlign=top width="17%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: char; FONT-SIZE: 9pt" face="Courier New">138</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: char; FONT-SIZE: 9pt" face="Courier New">Cbeyond, Inc. (business communications provider) and The Southern Company (energy company).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="LAYOUT-GRID-MODE: char; FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: char; FONT-SIZE: 9pt" face="Courier New">Senior Vice President - Government Affairs, General Counsel and Secretary, PepsiCo, Inc. (consumer products); and </FONT><B><FONT style="LAYOUT-GRID-MODE: char; FONT-SIZE: 9pt" face="Courier New">formerly,</FONT></B><FONT style="LAYOUT-GRID-MODE: char; FONT-SIZE: 9pt" face="Courier New"> Director, Delta Airlines (aviation) (2003-2005) and Providian Financial Corp. (credit card provider) (1997-2001); Senior Fellow of The Brookings Institution (2003-2004); Visiting Professor, University of Georgia School of Law (2004); and Deputy Attorney General, U.S. Department of Justice (2001-2003).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">John B. Wilson (1959)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Lead Independent Trustee</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Trustee since 2006 and Lead Independent Trustee since 2008</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">106</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">President and Founder, Hyannis Port Capital, Inc. (real estate and private equity investing); serves on private and non-profit boards; and </FONT><B><FONT style="FONT-SIZE: 9pt" face="Courier New">formerly</FONT></B><FONT style="FONT-SIZE: 9pt" face="Courier New">, Chief Operating Officer and Executive Vice President, Gap, Inc. (retail) (1996-2000); Chief Financial Officer and Executive Vice President &#150; Finance Strategy, Staples, Inc. (office supplies) (1992-1996); Senior Vice President &#150; Corporate Planning, Northwest Airlines, Inc. (airlines) (1990-1992); and Vice President and Partner, Bain &amp; Company (consulting firm) (1986-1990).</FONT></P>
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<H1 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: left; MARGIN: 0in 0in 0pt" align=left><B><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 9pt" face="Arial Narrow">Nominees for Interested Trustee</FONT></B></H1>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Name, Year of Birth and Address</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Length of Time Served</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Number of Portfolios in Fund Complex Overseen by Board Member*</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Other Directorships Held</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">**Charles B. Johnson (1933)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Trustee and Chairman of the Board</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Trustee since 1988 and Chairman of the Board since 1993</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">130</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">None</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Chairman of the Board, Member - Office of the Chairman and Director, Franklin Resources, Inc.; and officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton Investments.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">**Rupert H. Johnson, Jr. (1940)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Trustee and Senior Vice President </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 1988 </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">50</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">None</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Vice Chairman, Member - Office of the Chairman and Director, Franklin Resources, Inc.;&nbsp; Director, Franklin Advisers, Inc.; Senior Vice President, Franklin Advisory Services, LLC; and officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 25 of the investment companies in Franklin Templeton Investments.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 9pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Courier New">*We base the number of portfolios on each separate series of the U.S. registered investment companies within the Franklin Templeton Investments fund complex. These portfolios have a common investment manager or affiliated investment managers.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Courier New">**Charles B. Johnson and Rupert H. Johnson, Jr. are considered to be interested persons of the Trust under the federal securities laws due to their positions as officers and directors and major shareholders of Franklin Resources, Inc. (Resources), which is the parent company of the Trust's investment manager and distributor.&nbsp; </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Courier New">Note 1: Charles B. Johnson and Rupert H. Johnson, Jr. are brothers.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Courier New">Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Courier New">Note 3:&nbsp; Prior to the date of this proxy statement Frank W.T. LaHaye ceased to be a trustee of the Trust.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 9pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">Board members historically have followed a policy of having substantial investments in one or more of the funds in Franklin Templeton Investments, as is consistent with their individual </FONT><FONT style="LETTER-SPACING: -0.5pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">financial goals. In Feb&shy;ruary 1998, this policy was formalized through adoption of a requirement</FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"> that each board member invest one-third of fees received for serving as a director or trustee </FONT><FONT style="LETTER-SPACING: 0.25pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">of a Templeton fund (excluding committee fees) in shares of one or more Templeton funds and &shy;one-third of fees received</FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"> for serving as a director or trustee of a Franklin fund (excluding committee fees) in shares of one or more Fra
nklin funds until the value of such investments equals or exceeds five times the annual retainer and regular board meeting </FONT>


<FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">fees paid to such board member. Investments in the name of family members or entities controlled by a board member constitute fund holdings of such board member for purposes of this policy, and a three year &shy; phase-in period applies to such investment requirements for newly elected board members. In implementing such policy, a board member&#146;s fund holdings existing on Feb&shy;ruary 27, 1998, were valued as of such date with subsequent investments valued &shy;at cost.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="MARGIN: 0in 0in 0pt 17.3pt"><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The following tables provide the dollar range of equity securities of the Fund and of all funds overseen by the Trustees in the Franklin Templeton Investments fund complex beneficially owned by the Trustees as of December 31, 2010.</FONT></P>
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<P style="MARGIN: 0in 0in 6pt"><B><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 10pt" lang=EN-US face=TimesNewRomanPS>Independent Trustees:</FONT></B></P>
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<P style="PAGE-BREAK-AFTER: avoid; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in"><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Name of Nominee</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Dollar&nbsp;Range</FONT></B><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS> </FONT><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>&nbsp;of&nbsp;Equity</FONT></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0.75pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Securities in the Trust</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Aggregate&nbsp;Dollar&nbsp;Range&nbsp;of&nbsp;Equity</FONT></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Securities&nbsp;in&nbsp;all&nbsp;Funds&nbsp;Overseen&nbsp;by&nbsp;the</FONT></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Board Member in the Franklin Templeton</FONT></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0.75pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Investments Fund Complex</FONT></B></P>
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<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>Harris J. Ashton...................................................................... </FONT></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">$1-$10,000</FONT></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Over $100,000</FONT></P>
</TD></TR>
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     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="41%">
<P style="TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>Sam Ginn.................................................................................. </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=3 noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">None</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="39%" noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Over $100,000</FONT></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="41%">
<P style="TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>Edith E. Holiday...................................................................... </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=3 noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">None</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="39%" noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Over $100,000</FONT></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="41%">
<P style="TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>J. Michael Luttig..................................................................... </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="19%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">None</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="40%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Over $100,000</FONT></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="41%">
<P style="TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>Frank A. Olson........................................................................ </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=3 noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">None</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="39%" noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Over $100,000</FONT></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="41%">
<P style="TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>Larry D. Thompson................................................................ </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=3 noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">None</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="39%" noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Over $100,000</FONT></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="41%">
<P style="TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>John B. Wilson....................................................................... </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=3 noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">None</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="39%" noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Over $100,000</FONT></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" width="41%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" width="20%" colSpan=3 noWrap>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" width="39%" noWrap>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD></TR>
<TR style="HEIGHT: 12pt">
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; HEIGHT: 12pt; PADDING-TOP: 0in" width="41%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; HEIGHT: 12pt; PADDING-TOP: 0in" width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; HEIGHT: 12pt; PADDING-TOP: 0in" width="56%" colSpan=3>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="41%">
<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Interested Trustees:</FONT></B></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=3>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 2pt; FONT-SIZE: 4pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="39%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 2pt; FONT-SIZE: 4pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD></TR>
<TR>
     <TD style="BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="41%">
<P style="PAGE-BREAK-AFTER: avoid; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in"><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Name of Nominee</FONT></B></P>
</TD>
     <TD style="BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=3>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Dollar&nbsp;Range</FONT></B><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS> </FONT><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>&nbsp;of&nbsp;Equity</FONT></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0.75pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Securities in the Trust</FONT></B></P>
</TD>
     <TD style="BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="39%">
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Aggregate&nbsp;Dollar&nbsp;Range&nbsp;of&nbsp;Equity</FONT></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Securities&nbsp;in&nbsp;all&nbsp;Funds&nbsp;Overseen&nbsp;by&nbsp;the</FONT></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Board Member in the Franklin Templeton</FONT></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0.75pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Investments Fund Complex</FONT></B></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="41%">
<P style="TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>Charles B. Johnson................................................................ </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=3 noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">$1-$10,000</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="39%" noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Over $100,000</FONT></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="41%">
<P style="TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>Rupert H. Johnson, Jr............................................................ </FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=3 noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">$1-$10,000</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="39%" noWrap>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Over $100,000</FONT></P>
</TD></TR>
<TR height=0>
     <TD width="41%"></TD>
     <TD width="3%"></TD>
     <TD width="16%"></TD>
     <TD width="1%"></TD>
     <TD width="39%"></TD></TR></TABLE></DIV>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 6pt 17pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face=TimesNewRomanPS></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 17.3pt"><B><I><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">How often do the Trustees meet and what are they paid?</FONT></I></B></P>
<P style="MARGIN: 0in 0in 6pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Times New Roman"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 6pt 17.3pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The role of the Trustees is to provide general oversight of the Fund&#146;s business, and to ensure that the Fund is operated for the benefit of all shareholders. The Trustees anticipate meeting at least eight</FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US color=navy face="Times New Roman"> </FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">times during the current fiscal year to review the operations of the Fund and the Fund&#146;s investment performance. The Trustees also oversee the services furnished to the Fund by Franklin Advisers, Inc., the Fund&#146;s investment manager (the &#147;Investment Manager&#148;), and various other service providers. The Fund&#146;s Independent Trustees constitute the sole Independent Trustees of 27 funds in the Franklin Templeton Investments fund complex, for which each Independent Trustee currently is paid a $232,000 annual retainer, together with a $7
,000 per meeting fee for attendance at board meetings, a portion of which is allocated to the Fund. To the extent held, </FONT>


<FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">compensation may also be paid for attendance at specially held Board meetings. The Fund&#146;s lead independent trustee is paid an annual supplemental retainer of $25,000 for service to such investment companies, a portion of which is allocated to the Fund. Trustees who serve on the Audit Committee of the Fund and such other funds receive a flat fee of $3,000 per Committee meeting attended in person and $2,000 per telephonic meeting, a portion of which is allocated to the Fund. John B. Wilson, who serves as chairman of the Audit Committee of the Fund and such other funds, receives an additional fee of $40,000 per year, a portion of which is allocated to the Fund. Members of a committee are not separately compensated for any committee meeting held on the day of a Board meeting. Independent Trustees are also reimbursed for expenses incurred in connection with attending Board meetings. </FONT></P>
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<P style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align=right><FONT style="mso-bidi-font-size: 10.0pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US face="Times New Roman"></FONT></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
</DIV>


<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: char; FONT-SIZE: 12pt" lang=EN-US color=navy face=Arial></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 6pt 0.25in"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Times New Roman">During the fiscal year ended &shy;August 31, 2010, there were eight meetings of the Board, four meetings of the Nominating Committee, and three meetings of the Audit Committee. Each of the Trustees attended at least 75% of the aggregate of the total number of meetings of the Board and the total number of meetings held by all committees of the Board on which the Trustee served. &nbsp;</FONT></P>
<P style="MARGIN: 0in 0in 6pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Times New Roman"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 6pt 0.25in"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Times New Roman">The Fund does not currently have a formal policy regarding Trustees&#146; attendance at the Annual Shareholders&#146; Meeting. None of the Trustees attended the Fund&#146;s last annual meeting held on March 26, 2010.</FONT></P>
<P style="MARGIN: 0in 0in 6pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Times New Roman"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 6pt 0.25in"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Times New Roman">Certain Interested Trustees and officers of the Fund are shareholders of Resources and may receive indirect remuneration due to their participation in the management fees and other fees received from the Franklin Templeton funds by the Investment Manager and its affiliates. The Investment Manager or its affiliates pay the salaries and expenses of the officers. No pension or retirement benefits are accrued as part of Fund &shy;expenses.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 0.25in"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 0.25in"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">The following table indicates the aggregate compensation paid to the nominees for Independent Trustee by the Fund individually and by all of the funds in the Franklin Templeton Investments fund complex. These Trustee nominees also serve as directors or trustees of other Franklin Templeton funds, many of which hold meetings at different dates and times. The Trustees and the Fund&#146;s management believe that having the same individuals serving on the boards of many of the funds in Franklin Templeton Investments fund complex enhances the ability of each fund to obtain, at a relatively modest cost to each separate fund, the services of high caliber, experienced and knowledgeable Independent Trustees who can bring their experience and talents to, and more effectively oversee the management of, the funds.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<DIV align=center>
<TABLE style="WIDTH: 753pt; BORDER-COLLAPSE: collapse; MARGIN-LEFT: 154.45pt" border=0 cellSpacing=0 cellPadding=0>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD>
     <TD style="BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="24%" colSpan=3>
<P style="PAGE-BREAK-AFTER: avoid; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in"><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Name of Trustee</FONT></B></P>
</TD>
     <TD style="BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=2>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Aggregate<BR>
Compensation</FONT></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0.75pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>from&nbsp;the&nbsp;Trust<SUP>(1)</SUP></FONT></B></P>
</TD>
     <TD style="BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="30%" colSpan=2>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face="Times New Roman">Total&nbsp;Compensation&nbsp;from<BR>
Franklin Templeton<BR>
Investments&nbsp;Fund&nbsp;Complex<SUP>(2)</SUP></FONT></B></P>
</TD>
     <TD style="BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="25%" colSpan=2>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Number&nbsp;of&nbsp;Boards&nbsp;within</FONT></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>Franklin Templeton<BR>
Investments&nbsp;Fund&nbsp;Complex</FONT></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0.75pt" align=center><B><FONT style="FONT-SIZE: 7.5pt" face=TimesNewRomanPS>on&nbsp;which&nbsp;Trustee&nbsp;Serves<SUP>(3)</SUP></FONT></B></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="24%" colSpan=3>
<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>Harris J. Ashton</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>$1,067</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="30%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>$470,000</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="25%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>41</FONT></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="24%" colSpan=3>
<P style="TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>Sam Ginn</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;1,067</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="30%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;288,000</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="25%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>27</FONT></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="24%" colSpan=3>
<P style="TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>Edith E. Holiday</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;1,067</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="30%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;505,000</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="25%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>41</FONT></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="24%" colSpan=3>
<P style="TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>Frank W.T. LaHaye<SUP>(4)</SUP></FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp; 287</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="30%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;100,333</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="25%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>N/A</FONT></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="23%" colSpan=2>
<P style="TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;&nbsp; J. Michael Luttig</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="21%" colSpan=3 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 888</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="30%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 492,000</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="25%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 41</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="24%" colSpan=3>
<P style="TEXT-INDENT: -12pt; MARGIN-LEFT: 12pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>Frank A. Olson</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>1,072</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="30%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;492,000</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="25%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>41</FONT></P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="24%" colSpan=3>
<P style="TEXT-INDENT: -0.1pt; MARGIN-LEFT: 0.1pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;&nbsp; Larry D. Thompson</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,043</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="30%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 589,000</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="25%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; TEXT-INDENT: 18.65pt; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>43</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD></TR>
<TR>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=top width="24%" colSpan=3>
<P style="TEXT-INDENT: -0.05pt; MARGIN-LEFT: 0.05pt; MARGIN-RIGHT: 0in"><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>John B. Wilson</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="20%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;1,123</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="30%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;375,000</FONT></P>
</TD>
     <TD style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.1in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" vAlign=bottom width="25%" colSpan=2 noWrap>
<P style="TEXT-ALIGN: center; MARGIN-LEFT: 0in; MARGIN-RIGHT: 0in" align=center><FONT style="FONT-SIZE: 10pt" face=TimesNewRomanPS>&nbsp;&nbsp; 27</FONT></P>
</TD></TR>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="TEXT-INDENT: -0.25in; MARGIN: 0in 0in 0pt 0.25in"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Courier New">(1) Compensation received for the fiscal year ended August 31, 2010.</FONT></P>
<P style="TEXT-INDENT: -27pt; MARGIN: 0in 0in 6pt 27pt"><FONT style="LINE-HEIGHT: 200%; FONT-SIZE: 9pt" lang=EN-US face="Courier New">(2) &nbsp;Compensation received for the calendar year ended December 31, 2010. </FONT></P>
<P style="TEXT-INDENT: -27pt; MARGIN: 0in 0in 6pt 27pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Times New Roman">(3) &nbsp;We base the number of boards on the number of U.S. registered investment companies in the Franklin Templeton Investments fund complex. This number does not include the total number of series or funds within each investment company for which the Board members are responsible. Franklin Templeton Investments currently includes 45 U.S. registered investment companies, with approximately 144 U.S. based funds or series. </FONT></P>
<P style="TEXT-INDENT: -0.25in; MARGIN: 0in 0in 0pt 0.25in"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Courier New">(4) Retired April 30, 2010.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="TEXT-INDENT: -12pt; MARGIN: 0in 0in 6pt 12pt"><B><I><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT></I></B>&nbsp;</P>
<P style="TEXT-INDENT: -12pt; MARGIN: 0in 0in 6pt 12pt"><B><I><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Who are the Executive Officers of &shy;the Fund?</FONT></I></B></P>
<P style="MARGIN: 0in 0in 6pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Times New Roman">Officers of the Fund are appointed by the Trustees and serve at the pleasure of the Board. Listed below, for each Executive Officer, are his or her name, year of birth, address, a brief description of his or her professional experience for the past 5 years, and&nbsp; his or her position and length of service with the Fund:</FONT></P>
<H1 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: center; MARGIN: 0in 0in 0pt"><B><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 10pt" face="Arial Narrow"></FONT></B>&nbsp;</H1>
<DIV align=left>
<TABLE style="BORDER-BOTTOM: medium none; BORDER-LEFT: medium none; WIDTH: 474.299pt; BORDER-COLLAPSE: collapse; BORDER-TOP: medium none; BORDER-RIGHT: medium none" border=0 cellSpacing=0 cellPadding=0>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BACKGROUND: #dfdfdf; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" width="21%">
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Name, Year of Birth and Address</FONT></B></P>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BACKGROUND: #dfdfdf; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" width="21%">
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Position</FONT></B></P>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BACKGROUND: #dfdfdf; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" width="58%">
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Length of Time Served</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
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<TABLE style="BORDER-BOTTOM: medium none; BORDER-LEFT: medium none; WIDTH: 474.299pt; BORDER-COLLAPSE: collapse; BORDER-TOP: medium none; BORDER-RIGHT: medium none" border=0 cellSpacing=0 cellPadding=0>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" vAlign=top width="21%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">James M. Davis</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">(1952)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" vAlign=top width="21%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Chief Compliance Officer </FONT></P>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" vAlign=top width="58%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 2004 </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years: </FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Director, Global Compliance, Franklin Resources, Inc.; officer of some of the other subsidiaries of Franklin Resources, Inc. and of 45 of the investment companies in Franklin Templeton Investments; and </FONT><B><FONT style="FONT-SIZE: 9pt" face="Courier New">formerly,</FONT></B><FONT style="FONT-SIZE: 9pt" face="Courier New"> Director of Compliance, Franklin Resources, Inc. (1994-2001).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" vAlign=top width="21%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Laura F. Fergerson (1962)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">San Mateo,</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">CA 94403-1906</FONT></P>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" vAlign=top width="23%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Chief Executive Officer &#150; Finance and Administration</FONT></P>
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     <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in" vAlign=top width="56%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 2009</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Senior Vice President, Franklin Templeton Services, LLC; officer of 45 of the investment companies in Franklin Templeton Investments; and </FONT><B><FONT style="FONT-SIZE: 9pt" face="Courier New">formerly,</FONT></B><FONT style="FONT-SIZE: 9pt" face="Courier New"> Director and member of Audit and Valuation Committees, Runkel Funds, Inc. (2003-2004); Assistant Treasurer of most of the investment companies in Franklin Templeton Investments (1997-2003); and Vice President, Franklin Templeton Services, LLC (1997-2003).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Gaston Gardey (1967)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">San Mateo,</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Treasurer, Chief Financial Officer and Chief Accounting Officer</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 2009</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Director, Fund Accounting, Franklin Templeton Investments; and officer of 27 of the investment companies in Franklin Templeton Investments.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Name, Year of Birth and Address</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Length of Time Served</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Aliya S. Gordon (1973)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Vice President</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 2009</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Senior Associate General Counsel, Franklin Templeton Investments; officer of 45 of the investment companies in Franklin Templeton Investments; and </FONT><B><FONT style="FONT-SIZE: 9pt" face="Courier New">formerly, </FONT></B><FONT style="FONT-SIZE: 9pt" face="Courier New">Litigation Associate, Steefel, Levitt &amp; Weiss, LLP (2000-2004).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">David P. Goss (1947)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Vice President</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 2000</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">Senior Associate General Counsel, Franklin Templeton Investments; and officer and/or director, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 45 of the investment companies in Franklin Templeton Investments.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Steven J. Gray (1955)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Vice President</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 2009</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Senior Associate General Counsel, Franklin Templeton Investments; Vice President, Franklin Templeton Distributors, Inc.; and officer of 45 of the investment companies in Franklin Templeton Investments. </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Edward B. Jamieson (1948)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">President and Chief Executive Officer &#150; Investment Management </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">President since 1993 and Chief Executive Officer &#150; Investment Management since 2002</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">President, Chief Investment Officer and Director, Franklin Advisers, Inc.; Executive Vice President, Franklin Templeton Institutional, LLC; and officer and/or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 10 of the investment companies in Franklin Templeton Investments.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 6pt 17pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face=TimesNewRomanPS></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 6pt 17pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face=TimesNewRomanPS></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 6pt 17pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face=TimesNewRomanPS></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 6pt 17pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face=TimesNewRomanPS></FONT>&nbsp;</P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Name, Year of Birth and Address</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Length of Time Served</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Charles B. Johnson (1933)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Trustee and Chairman of the Board</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Trustee since 1988 and Chairman of the Board since 1993</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Please refer to the table &#147;Nominees for Interested Trustee&#148; for additional information about Mr. Charles B. Johnson.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Rupert H. Johnson, Jr. (1940)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LAYOUT-GRID-MODE: line; FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Trustee and Senior Vice President </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 1988 </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Please refer to the table &#147;Nominees for Interested Trustee&#148; for additional information about Mr. Rupert H. Johnson Jr.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Robert C. Rosselot (1960)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">500 East Broward Blvd. </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Suite 2100</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Fort Lauderdale,</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">FL 33394-3091</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Vice President</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 2009</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Senior Associate General Counsel, Franklin Templeton Investments; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; Vice President, Secretary and Trust Officer, Fiduciary Trust International of the South; and officer of 45 of the investment companies in Franklin Templeton Investments. </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Karen L. Skidmore (1952)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Vice President and Secretary</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 2006 </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Senior Associate General Counsel, Franklin Templeton Investments; and officer of 45 of the investment companies in Franklin Templeton Investments.</FONT></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Name, Year of Birth and Address</FONT></B></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Length of Time Served</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Craig S. Tyle (1960)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">One Franklin Parkway </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">San Mateo, CA 94403-1906</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Vice President</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">Since 2005</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" face="Courier New">Principal Occupation During Past 5 Years:</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Courier New">General Counsel and Executive Vice President, Franklin Resources, Inc.; officer of some of the other subsidiaries of Franklin Resources, Inc. and of 45 of the investment companies in Franklin Templeton Investments; and </FONT><B><FONT style="FONT-SIZE: 9pt" face="Courier New">formerly</FONT></B><FONT style="FONT-SIZE: 9pt" face="Courier New">, Partner, Shearman &amp; Sterling, LLP (2004-2005); and General Counsel, Investment Company Institute (ICI) (1997-2004).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="MARGIN: 0in 0in 6pt"><B><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">ADDITIONAL INFORMATION ABOUT &shy;THE FUND</FONT></B></P>
<P style="MARGIN: 6pt 0in 6pt 0.3pt"><B><I><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The Investment Manager.</FONT></I></B><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;The Investment Manager is Franklin Advisers, Inc., a California </FONT><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">corporation, whose principal address is One Franklin Parkway, San Mateo, CA 94403.</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> The Investment Manager is a &shy;wholly-owned subsidiary of Resources.</FONT></P>
<P style="MARGIN: 0in 0in 6pt"><B><I><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The Administrator.</FONT></I></B><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;The administrator of the Fund is Franklin Templeton Services, LLC (&#147;FT Services&#148;), whose principal address is also One Franklin Parkway, San Mateo, CA 94403. Under an agreement with the Investment Manager, FT Services performs certain administrative functions, such as portfolio recordkeeping, for the Fund. FT Services is an indirect, &shy;wholly-owned subsidiary of &shy;Resources.</FONT></P>
<P style="MARGIN: 0in 0in 6pt"><B><I><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The Transfer Agent.</FONT></I></B><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;The transfer agent, registrar and dividend disbursement agent for the Fund is BNY Mellon Asset Servicing, 4400 Computer Drive, Westborough, MA 01581.</FONT></P>
<P style="MARGIN: 0in"><B><I><FONT style="LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The Custodian.</FONT></I></B><FONT style="LETTER-SPACING: 0.5pt; FONT-SIZE: 11pt" lang=EN-US color=black face="Courier New">&nbsp;</FONT><FONT style="LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Bank of New York, Mutual Funds Division, 90 Washington Street, New York, NY 10286, acts as custodian of the Fund&#146;s securities and other &shy;assets. </FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;</FONT></P>
<P style="MARGIN: 6pt 0in"><B><I><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Reports to Shareholders and Financial Statements.</FONT></I></B><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;The Fund&#146;s last audited financial statements and annual report for the fiscal year ended &shy; August 31, 2010, are available free of charge. To obtain a copy, please call (</FONT><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">800)DIAL BEN&#174;/(800)342-5236</FONT><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> or forward a written request to </FONT><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Franklin Templeton Investor Services, LLC, P.O. Box 997151, Sacramento, CA &shy; 95899-9983.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Principal Shareholders.</FONT></I></B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;As of January 21, 2011, the Fund had 25,131,894 shares </FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">outstanding and total net assets of $176,649,768.&nbsp; The Fund&#146;s shares are listed on the NYSE</FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> (symbol: FT). From time to time, the number of shares held in &#147;street name&#148; accounts of various securities dealers for the benefit of their clients may exceed 5% of the total shares outstanding.&nbsp; To the knowledge of the Fund&#146;s management, as of January 21, 2011, there </FONT><FONT style="LINE-HEIGHT: normal; 
LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">were no other entities holding beneficially or of record more than 5% of the Fund&#146;s outstanding</FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> shares.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">In addition, to the knowledge of the Fund&#146;s management, as of January 21, 2011, no Trustee</FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> of the Fund owned 1% or more of the outstanding shares of the Fund, and the officers and Trustees of the Fund owned, as a group, less than 1% of the outstanding shares of &shy;the Fund.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT></I></B>&nbsp;</P>
<P style="MARGIN: 0in 0in 6pt"><B><I><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Contacting the Board of Trustees.</FONT></I></B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;If a shareholder wishes to send a communication to the Board, such correspondence should be in writing and addressed to the Board of Trustees at the Fund&#146;s offices, One </FONT>


<FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Franklin Parkway, San Mateo, California 94403. The correspondence will then be given to the Board for their review and &shy;consideration.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="MARGIN: 0in 0in 6pt"><B><I><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">AUDIT COMMITTEE</FONT></I></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-STYLE: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt; FONT-WEIGHT: normal" lang=EN-US color=black face="Courier New">The Board has a standing Audit Committee currently consisting of Messrs. Wilson (Chairman), Luttig and Olson, all of whom are Independent Trustees and also are considered to be &#147;independent&#148; as that term is defined by the NYSE&#146;s listing standards. The Fund&#146;s Audit Committee is responsible for the appointment, compensation and retention of the Fund&#146;s independent registered public accounting firm (auditors), including evaluating their independence, recommending the selection of the Fund&#146;s auditors to the full Board, and meeting with such auditors to consider and review matters relating to the Fund&#146;s financial reports and internal accounting. </FONT></P>
<P style="MARGIN: 0in 0in 0in 17.3pt"><B><I><FONT style="LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT></I></B>&nbsp;</P>
<P style="MARGIN: 0in"><B><I><FONT style="LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Selection of Auditors</FONT></I></B><FONT style="LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The Audit Committee and the Board have selected the firm of PricewaterhouseCoopers LLP (&#147;PwC&#148;) as auditors of the Fund for the current fiscal year. Representatives of PwC are not expected to be present at the Meeting, but will have the opportunity to make a statement if they wish, and will be available should any matter arise requiring their presence.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT></I></B>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Audit Fees</FONT></I></B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.&nbsp;</FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The aggregate fees paid to PwC for professional services rendered by PwC for the audit of the Fund&#146;s annual financial statements or for services that are normally provided by PwC in connection with statutory and regulatory filings or engagements were $33,258 for the fiscal year ended August 31, 2010, and $32,094 for the fiscal year ended August 31, 2009.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT></I></B>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Audit-Related Fees</FONT></I></B><B><FONT style="LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.</FONT></B><FONT style="LETTER-SPACING: 0.5pt; FONT-SIZE: 10pt" lang=EN-US color=black face="Courier New">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">There were no fees paid to PwC for assurance and related services rendered by PwC to the Fund that are reasonably related to the performance of the audit or review of the Fund's financial statements and are not reported under &#147;Audit Fees&#148; above for the fiscal years ended August 31, 2010 and August 31, 2009.&nbsp; </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">There were no fees paid to PwC for assurance and related services rendered by PwC to the Investment Manager and any entity controlling, controlled by or under common control with the Investment Manager that provides ongoing services to the Fund that are reasonably related to the performance of the audit of financial statements for the fiscal years ended August 31, 2010 and August 31, 2009. </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT></I></B>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Tax Fees</FONT></I></B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.&nbsp;There were no fees paid to PwC for professional services rendered by PwC to the Fund for tax compliance, tax advice and tax planning for the fiscal years ended August 31, 2010 and August 31, 2009.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The aggregate fees paid to PwC for professional services rendered by PwC to the Investment Manager and any entity controlling, controlled by or under common control with the Investment Manager that provides ongoing services to the Fund for tax compliance, tax advice and tax planning were $0 for the fiscal year ended August 31, 2010, and $6,000 for the fiscal </FONT>


<FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">year ended August 31, 2009.&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT></I></B>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">All Other Fees</FONT></I></B><B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.</FONT></B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> </FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">There were no fees paid to PwC for products and services rendered by PwC to the Fund not reported in previous paragraphs for the fiscal years ended August 31, 2010 and August 31, 2009.&nbsp; </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The were no fees paid to PwC for products and services rendered by PwC to the Investment Manager and any entity controlling, controlled by or under common control with the Investment Manager that provides ongoing services to the Fund not reported in previous paragraphs for the fiscal years ended August 31, 2010 and August 31, 2009.&nbsp; </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT></I></B>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Audit Committee &shy;Pre-Approval Policies and Procedures</FONT></I></B><B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.&nbsp;</FONT></B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">As of the date of this proxy statement, the Audit Committee has not adopted &shy;pre-approval policies and procedures. As a </FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">result, all such services described above and provided by PwC must be directly &shy; pre-approved</FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> by the Audit &shy;Committee.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT></I></B>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Aggregate Non-Audit Fees</FONT></I></B><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.</FONT></B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;The aggregate fees paid to PwC for non-audit services to the Fund, and to the Investment Manager and any entity controlling, controlled by, or under common control with the Investment Manager that provides ongoing services to the Fund, were $0 for the fiscal year ended August 31, 2010, and $6,000 for the fiscal year ended August 31, 2009.</FONT></P>
<P style="MARGIN: 12pt 0in 0pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The Audit Committee has considered whether the provision of the non-audit services that were rendered to the Investment Manager and to any entities controlling, controlled by, or under common control with the Investment Manager that provide ongoing services to the Fund that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining PwC's independence.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Audit Committee Report</FONT></I></B><B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.</FONT></B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;The Board has adopted and approved a revised formal written charter for the Audit Committee, which sets forth the Audit Committee&#146;s responsibilities. A copy of the charter was attached as &#147;Appendix A&#148; to the proxy statement for the Fund&#146;s 2009 Annual Shareholders&#146; Meeting.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">As required by the charter, the Audit Committee reviewed the Fund&#146;s audited financial statements and met with management, as well as with PwC, the Fund&#146;s auditors, to discuss the financial &shy;statements.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 17.3pt"><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">The Audit Committee received the written disclosures and the letter from PwC required by </FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Independence Standards Board Standard No. 1. The Audit Committee also received the report</FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> of PwC regarding the results of their audit. In connection with their review of the financial statements and the auditors&#146; report, the members of the Audit Committee discussed with a </FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: -0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">representative of PwC, PwC&#146;s independence, as well as the following: the auditors&#146; responsibilities</FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACI
NG: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> in accordance with generally accepted auditing standards; the auditors&#146; responsibilities for </FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">information prepared by the Fund&#146;s management that accompanies the Fund&#146;s </FONT>


<FONT style="LINE-HEIGHT: normal; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">audited financial statements</FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> and any procedures performed and the results; the initial selection of, and whether there were any changes in, significant accounting policies or their application; the Fund&#146;s management&#146;s judgments and accounting estimates; whether there were any significant audit adjustments; </FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">whether there were any disagreements with the Fund&#146;s management; whether there was any consultation</FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> with other accountants; whether there were any major issues discussed with the Fund&#146;s management prior to the auditors&#146; retent
ion; whether the auditors encountered any difficulties in dealing with the Fund&#146;s management in performing the audit; and the auditors&#146; judgments about the quality of the Fund&#146;s accounting &shy; principles.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Based on its review and discussions with the Fund&#146;s management and the Fund&#146;s auditors, the Audit </FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Committee did not become aware of any material misstatements or omissions in the financial</FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> statements.</FONT></P>
<P style="MARGIN: 0in 0in 6pt"><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Accordingly, the Audit Committee recommended to the Board that the audited financial statements be included in the Fund&#146;s Annual Report to Shareholders for the fiscal year ended &shy;August 31, 2010, for filing with &shy;the </FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">SEC</FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 17.3pt"><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 17pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THE AUDIT &shy;COMMITTEE</FONT></P>
<P style="MARGIN: 0in 0in 0pt 17pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; John B. Wilson (Chairman)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US face=TimesNewRomanPS>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=SV face=TimesNewRomanPS>&nbsp; &nbsp;&nbsp;</FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=SV face="Courier New">J. Michael Luttig</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=SV face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Frank A. Olson</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">&#61609; </FONT></B><B><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">ADDITIONAL INFORMATION ABOUT THE BOARD</FONT></I></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 9pt" lang=SV face=TimesNewRomanPS></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">Board Role in Risk Oversight.</FONT></I></B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"> The Board, as a whole, considers risk management issues as part of its general oversight responsibilities throughout the year at regular Board meetings, through regular reports that have been developed by management, in consultation with the Board and its counsel. These reports address certain investment, valuation and compliance matters. The Board also may receive special written reports or presentations on a variety of risk issues, either upon the Board's request or upon the Investment Manager's initiative. In addition, the Audit Committee of the Board meets regularly with the Investment Manager's internal audit group to review reports on their examinations of functions and processes within Franklin Templeton Investments that affect the Fund.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">With respect to investment risk, the Board receives regular written reports describing and analyzing the investment performance of the Fund. In addition, the portfolio managers of the Fund meet regularly with the Board to discuss portfolio performance, including investment risk. To the extent that the Fund changes a particular investment strategy that could have a material impact on the Fund's risk profile, the Board generally is consulted with respect to such change. To the extent that the Fund invests in certain complex securities, including derivatives, the Board receives periodic reports containing information about exposure of the Fund to such instruments. In addition, the Investment Manager's investment risk </FONT>


<FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">personnel meet regularly with the Board to discuss a variety of issues, including the impact on the Fund of the investment in particular securities or instruments, such as derivatives.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">With respect to valuation, the Fund's administrator provides regular written reports to the Board that enable the Board to monitor the number of fair valued securities in a particular portfolio, the reasons for the fair valuation and the methodology used to arrive at the fair value. Such reports also include information concerning illiquid securities within a Fund's portfolio. The Board also reviews dispositional analysis information on the sale of securities that require special valuation considerations such as illiquid or fair valued securities. In addition, the Fund's Audit Committee reviews valuation procedures and results with the Fund's independent auditors in connection with such Committee's review of the results of the audit of the Fund's year-end financial statements.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">With respect to compliance risks, the Board receives regular compliance reports prepared by the Investment Manager's compliance group and meets regularly with the Fund's Chief Compliance Officer ("CCO") to discuss compliance issues, including compliance risks. As required under SEC rules, the Independent Trustees meet at least quarterly in executive session with the CCO and the Fund's CCO prepares and presents an annual written compliance report to the Board. The Fund's Board adopts compliance policies and procedures for the Fund and approves such procedures for the Fund's service providers. The compliance policies and procedures are specifically designed to detect and prevent violations of the federal securities laws</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Investment Manager periodically provides an enterprise risk management presentation to the Board to describe the way in which risk is managed on a complex-wide level. Such presentation covers such areas as investment risk, reputational risk, personnel risk, and business continuity risk.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">Board Structure.</FONT></I></B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"> Seventy-five percent or more of Board members consist of Independent Trustees who are not deemed to be "interested persons" by reason of their relationship with the Fund's management or otherwise as provided under the 1940 Act. While the Chairman of the Board is an interested person, the Board is also served by a Lead Independent Trustee. The Lead Independent Trustee, together with independent counsel, reviews proposed agendas for Board meetings and generally acts as a liaison with management with respect to questions and issues raised by the Independent Trustees. The Lead Independent Trustee also presides at separate meetings of Independent Trustees held in advance of each scheduled Board meeting where various matters, including those being considered at such Board meeting are discussed. It is believed such structure and 
activities assure that proper consideration is given at Board meetings to matters deemed important to the Fund and its shareholders.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">&#61609; FURTHER INFORMATION ABOUT VOTING AND THE &shy;MEETING</FONT></B></P>
<P style="MARGIN: 6pt 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Solicitation of Proxies</FONT></I></B><B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.</FONT></B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;</FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US face="Courier New"> Your vote is being solicited by the Board. The </FONT>


<FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US face="Courier New">cost of soliciting these proxies, including the fees of any proxy soliciting agent, is borne by the Fund. The Fund reimburses brokerage firms and others for their expenses in forwarding proxy material to the beneficial owners and soliciting them to execute their proxies. In addition, the Fund may retain a professional proxy solicitation firm to assist with any necessary solicitation of proxies. The Fund expects that the solicitation would be primarily by mail, but may also include telephone, telecopy, electronic or oral solicitations. If the Fund does not receive your proxy by a certain time you may receive a telephone call from a proxy soliciting agent asking you to vote. If professional proxy solicitors are retained, it is expected that soliciting fees would be approximately $5,000, plus expenses. The Fund does not reimburse Trustees and officers of the Fund, or regular employees and agents of the Investment Manager, involved 
in the solicitation of proxies. The Fund intends to pay all costs associated with the solicitation and the Meeting.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Voting by &shy;Broker-Dealers</FONT></I></B><B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.</FONT></B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;The Fund expects that, before the Meeting, broker-dealer firms holding shares of the Fund in &#147;street name&#148; for their customers will request voting instructions from their customers and beneficial owners. If these instructions are not received by the date specified in the broker-dealer firms&#146; proxy solicitation materials, the Fund understands that NYSE rules permit the broker-dealers to vote on the Proposal to be considered at the Meeting on behalf of their customers and beneficial owners. Certain broker-dealers may exercise discretion over shares held 
in their name for which no instructions are received by voting those shares in the same proportion as they vote shares for which they received instructions.&nbsp; Accordingly, the Fund does not anticipate receiving any &#147;broker non-votes&#148; (i.e., proxy cards returned by broker-dealers without voting instructions for shares held of record). </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Quorum</FONT></I></B><B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.</FONT></B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;Forty percent of the shares entitled to vote &#151; present in person or represented by proxy &#151; constitutes a quorum at the Meeting. The shares over which &shy;broker-dealers have discretionary voting power, the shares that represent &#147;broker &shy; non-votes&#148; (i.e., shares held by brokers or nominees as to which (i) instructions have not been received from the beneficial </FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">owners or persons entitled to vote and (ii) the broker or nominee does not have discretionary</FONT><FONT st
yle="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> voting power on a particular matter), and the shares whose proxies reflect an abstention on any item are all counted as shares present and entitled to vote for purposes of determining whether the required quorum of shares &shy;exists.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Required Vote</FONT></I></B><B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.</FONT></B><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;Provided that a quorum is present, the election of Trustees requires a plurality of shares voted, meaning that the nine nominees receiving the greatest number of votes shall be elected. All voting rights are non-cumulative, which means that the holders of more than 50% of the shares voting for the election of Trustees can elect 100% of such Trustees if they choose to do so, and in such event, the holders of the remaining shares voting will not be able to elect any Trustees. </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="MARGIN: 0in 0in 0pt 17.3pt"><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Adjournment</FONT></I></B><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.</FONT></B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;Whether or not a quorum is present at the Meeting, the Meeting may be adjourned by a majority vote of the shares represented at the Meeting, either in person or by proxy, properly cast upon the question of adjournment.&nbsp; If the Meeting is adjourned, notice </FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: -0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">need not be given of the adjourned meeting at which the adjournment is taken, unless a new record date of the adjourned meeting is fixed or unless the adjournment</FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> is for more 
than 60 days from the date set for the original Meeting, in which case the Board </FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">of Trustees shall set a new date. At any adjourned Meeting, the Fund may transact any business</FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> which might have been transacted at the original Meeting. </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Whether or not a quorum is present, </FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">the persons named as proxies may propose one or more adjournments</FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> of the Meeting to permit the further solicitation of proxies. The persons named as proxies will vote in their </FONT><FONT style="LINE-HEIGHT: normal; LETTER-SPACING: -0.25pt; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">discretion on questions of adjournment those shares for which proxies have been received that</FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"> grant discretionary authority to vote on matters that may properly come before the &shy;Meeting, and on any other proposals properly raised at 
the Meeting to the extent permitted by the SEC&#146;s proxy rules, including proposals for which management of the Fund did not have timely notice, as set forth in the SEC&#146;s proxy rules.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 17.3pt"><B><I><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT></I></B>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 17.3pt"><B><I><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New"></FONT></I></B>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><I><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">Shareholder Proposals</FONT></I></B><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">.</FONT></B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;The Fund anticipates mailing this proxy statement on or about February 23, 2011. The Fund anticipates that its next Annual Shareholders&#146; Meeting will be held on or about Friday, March 23, 2012.&nbsp; Shareholder proposals to be presented at the next annual meeting must be received at the Fund&#146;s offices, One Franklin Parkway, San Mateo, California 94403, Attention: Secretary, no later than October 21, 2011, in order to be considered for inclusion in the Fund&#146;s proxy statement and proxy card relating to that meeting and presented at that meeting. Submission of a proposal by a shareholder does not guarantee that the proposal will 
be included in the proxy statement. A shareholder who wishes to make a proposal at the 2012 Annual Shareholders&#146; Meeting without including the proposal in the Fund&#146;s proxy statement must notify the Fund at the Fund&#146;s offices of such proposal by January 4, 2012.&nbsp; If a shareholder fails to give notice by this date, then the persons named as proxies in the proxies solicited by the Board for the 2012 Annual Shareholders&#146; Meeting may exercise discretionary voting power with respect to any such proposal.</FONT></P>
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<P style="MARGIN: 0in"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">No business other than the matters described above is expected to come before the Meeting, but should any other matter requiring a vote of shareholders arise, including any question as to an adjournment or postponement of the Meeting, the designated proxy holders will vote on such matters in accordance with the views of the Fund&#146;s management.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 17.3pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By order of the Board of Trustees,</FONT></FONT></FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ Karen L. Skidmore&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Karen L. Skidmore</FONT></P>
<P style="MARGIN: 0in 0in 6pt 17pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">Vice </FONT></I><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">President &amp;</FONT><I><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">Secretary</FONT></I></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="Courier New">Dated: February 18, 2011</FONT></P>
<H5 style="PAGE-BREAK-AFTER: avoid; MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 8pt" face=Arial>San Mateo, California</FONT></B></H5>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">Appendix A</FONT></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">NOMINATING COMMITTEE CHARTER</FONT></U></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 12pt; TEXT-DECORATION: none" lang=EN-US face="Courier New"></FONT></B>&nbsp;</P>
<P style="TEXT-INDENT: -27pt; MARGIN: 0in 0in 0pt 27pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">I.</FONT></B><B><FONT style="FONT-SIZE: 7pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Committee</FONT></U></B><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">.</FONT></B></P>
<P style="TEXT-INDENT: -0.5in; MARGIN: 0in 0in 0pt 0.75in"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT></B>&nbsp;</P>
<P style="TEXT-INDENT: -9pt; MARGIN: 0in 0in 6pt 27pt"><FONT style="LINE-HEIGHT: 200%; FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Nominating Committee (the &#147;Committee&#148;) is a committee of, and established by, the Board of Directors/Trustees of the Fund (the &#147;Board&#148;).&nbsp; The Committee consists of such number of members as set by the Board from time to time and its members shall be selected by the Board.&nbsp; The Committee shall be comprised entirely of &#147;independent members.&#148;&nbsp; For purposes of this Charter, independent members shall mean members who are not interested persons of the Fund (&#147;Disinterested Board members&#148;) as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;).</FONT></P>
<P style="TEXT-INDENT: -0.5in; MARGIN: 0in 0in 6pt 0.5in"><B><FONT style="LINE-HEIGHT: 200%; FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT></B>&nbsp;</P>
<P style="TEXT-INDENT: -0.75in; MARGIN: 0in 0in 0pt 0.75in"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">II.</FONT></B><B><FONT style="FONT-SIZE: 7pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp; </FONT></B><B><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">Board Nominations and Functions</FONT></U></B><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">.</FONT></B></P>
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<P style="TEXT-INDENT: -0.25in; MARGIN: 0in 0in 12pt 45pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">1.</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US face="Times New Roman">&nbsp; </FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Committee shall make recommendations for nominations for Disinterested Board members on the Board to the incumbent Disinterested Board members and to the full Board.&nbsp; The Committee shall evaluate candidates&#146; qualifications for Board membership and the independence of such candidates from the Fund&#146;s investment manager and other principal service providers.&nbsp; Persons selected must be independent in terms of both the letter and the spirit of the 1940 Act.&nbsp; The Committee shall also consider the effect of any relationships beyond those delineated in the 1940 Act that might impair independence, </FONT><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">e.g.</FONT></U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Co
urier New">, business, financial or family relationships with investment managers or service providers.</FONT></P>
<P style="TEXT-INDENT: -0.25in; MARGIN: 0in 0in 12pt 45pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">2.</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US face="Times New Roman">&nbsp; </FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Committee also shall evaluate candidates&#146; qualifications and make recommendations for &#147;interested&#148; members on the Board to the full Board.</FONT></P>
<P style="TEXT-INDENT: -0.25in; MARGIN: 0in 0in 0pt 45pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">3.</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US face="Times New Roman">&nbsp; </FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Committee may adopt from time to time specific, minimum qualifications that the Committee believes a candidate must meet before being considered as a candidate for Board membership and shall comply with any rules adopted from time to time by the U.S. Securities and Exchange Commission regarding investment company </FONT>


<FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">nominating committees and the nomination of persons to be considered as candidates for Board membership.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<P style="TEXT-INDENT: -0.5in; MARGIN: 0in 0in 0pt 0.5in"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
<P style="TEXT-INDENT: -0.25in; MARGIN: 0in 0in 0pt 45pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">4.</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US face="Times New Roman">&nbsp; </FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Committee shall review shareholder recommendations for nominations to fill vacancies on the Board if such recommendations are submitted in writing and addressed to the Committee at the Fund&#146;s offices.&nbsp; The Committee shall adopt, by resolution, a policy regarding its procedures for considering candidates for the Board, including any recommended by shareholders.</FONT></P>
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<P style="TEXT-INDENT: -0.75in; MARGIN: 0in 0in 0pt 0.75in"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">III.</FONT></B><B><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">Committee Nominations and Functions</FONT></U></B><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">.</FONT></B></P>
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<P style="MARGIN: 0in 0in 6pt 27pt"><FONT style="LINE-HEIGHT: 200%; FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Committee shall make recommendations to the full Board for nomination for membership on all committees of the Board.</FONT></P>
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<P style="TEXT-INDENT: -45pt; MARGIN: 0in 0in 0pt 45pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">IV.</FONT></B><B><FONT style="FONT-SIZE: 7pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp; </FONT></B><B><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">Other Powers and Responsibilities</FONT></U></B><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Courier New">.</FONT></B></P>
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<P style="TEXT-INDENT: -0.25in; MARGIN: 0in 0in 12pt 45pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US face="Courier New">1.</FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 7pt" lang=EN-US face="Times New Roman">&nbsp; </FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Committee shall meet at least once each year or more frequently in open or executive sessions.&nbsp; The Committee may invite members of management, counsel, advisers and others to attend its meetings as it deems appropriate. &nbsp;The Committee shall have separate sessions with management and others, as and when it deems appropriate.</FONT></P>
<P style="TEXT-INDENT: -0.25in; MARGIN: 0in 0in 12pt 45pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US face="Courier New">2.</FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 7pt" lang=EN-US face="Times New Roman">&nbsp; </FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Committee shall have the resources and authority appropriate to discharge its responsibilities, including authority to retain special counsel and other experts or consultants at the expense of the Fund.</FONT></P>
<P style="TEXT-INDENT: -0.25in; MARGIN: 0in 0in 12pt 45pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US face="Courier New">3.</FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 7pt" lang=EN-US face="Times New Roman">&nbsp; </FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Committee shall report its activities to the Board and make such recommendations as the Committee may deem necessary or appropriate.</FONT></P>
<P style="TEXT-INDENT: -0.25in; MARGIN: 0in 0in 12pt 45pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US face="Courier New">4.</FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 7pt" lang=EN-US face="Times New Roman">&nbsp; </FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US face="Courier New">A majority of the members of the Committee shall constitute a quorum for the transaction of business at any meeting of the Committee.&nbsp; The action of a majority of the members of the Committee present at a meeting at which a quorum is present shall be the action of the Committee.&nbsp; The Committee may meet in person or by telephone, and the Committee may act by written consent, to the extent permitted by law and by the Fund&#146;s by-laws.&nbsp; In the event of any inconsistency between this Charter and the Fund&#146;s organizational documents, the provisions of the Fund&#146;s organizational documents shall be given precedence.</FONT></P>
<P style="TEXT-INDENT: -0.25in; MARGIN: 0in 0in 12pt 45pt"><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US face="Courier New">5.</FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 7pt" lang=EN-US face="Times New Roman">&nbsp; </FONT><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Committee shall review this Charter at least annually and recommend any changes to the full Board.</FONT></P>
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<P style="TEXT-INDENT: -0.75in; MARGIN: 0in 0in 6pt 0.75in"><FONT style="LINE-HEIGHT: 200%; FONT-SIZE: 12pt" lang=EN-US face="Courier New"></FONT>&nbsp;</P>
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<P style="TEXT-ALIGN: center; TEXT-INDENT: -0.5in; MARGIN: 0in 0in 12pt 0.5in" align=center><B><U><FONT style="LINE-HEIGHT: 200%; FONT-SIZE: 12pt" lang=EN-US face="Courier New">ADDITIONAL STATEMENT FOR CLOSED-END FUNDS ONLY</FONT></U></B></P>
<P style="MARGIN: 0in 0in 6pt"><FONT style="LINE-HEIGHT: 200%; FONT-SIZE: 12pt" lang=EN-US face="Courier New">The Committee shall comply with any rules of any stock exchange, if any, applicable to nominating committees of closed-end funds whose shares are registered thereon.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="mso-spacerun: yes"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></P>
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<DIV style="BORDER-BOTTOM: windowtext 1.5pt solid; BORDER-LEFT: medium none; PADDING-BOTTOM: 1pt; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; BORDER-TOP: medium none; BORDER-RIGHT: medium none; PADDING-TOP: 0in">
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<H1 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: left; MARGIN: 0in 0in 0pt" align=left><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" face=Arial>ANNUAL SHAREHOLDERS&#146; MEETING &#150; MARCH 25, 2011</FONT></B></H1>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" lang=EN-US face=Arial>PROXY SOLICITED BY THE BOARD OF TRUSTEES OF THE FUND</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face=Arial></FONT>&nbsp;</P>
<P style="TEXT-ALIGN: justify; MARGIN: 0in 9pt 0pt 0in"><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 9pt" lang=EN-US face=Arial>The undersigned hereby revokes all previous proxies for his or her shares of Franklin Universal Trust (the &#147;Fund&#148;) and appoints Craig S. Tyle, David P. Goss and Karen L. Skidmore, and each of them, proxies of the undersigned with full power of substitution to vote all shares of the Fund that the undersigned is entitled to vote at the Fund&#146;s Annual Shareholders&#146; Meeting (the &#147;Meeting&#148;) to be held at One Franklin Parkway, Building 920, San Mateo, CA 94403-1906 at 2:00 p.m., Pacific time, on March 25, 2011, including any postponements or adjournments thereof, upon the matter set forth on the reverse side, and instructs them to vote upon any other matters that may properly be acted upon at the Meeting.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 9pt" lang=EN-US face=Arial>The Board of Trustees of the Fund solicits this proxy.&nbsp; It will be voted as specified on the reverse. If no specification is made, this proxy shall be voted FOR the election of nominees for Trustee for the terms specified in the proxy statement.&nbsp; If any other matters properly come before the Meeting to be voted on, the proxy holders will vote, act and consent on those matters in accordance with the views of management.&nbsp; Management is not aware of any such matters.</FONT></B></P>
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<P style="MARGIN: 0in 9pt 0pt 0in"><B><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 10pt" lang=EN-US face=Arial>IMPORTANT: PLEASE SEND IN YOUR PROXY TODAY.</FONT></B></P>
<P style="MARGIN: 0in 9.35pt 0pt 0in"><B><FONT style="LINE-HEIGHT: 5pt; FONT-SIZE: 9pt" lang=EN-US face=Arial></FONT></B>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><FONT style="LETTER-SPACING: -0.1pt; FONT-SIZE: 9pt" lang=EN-US face=Arial>You are urged to date and sign this proxy and return it promptly whether or not you plan to attend the meeting in person.&nbsp; This will save the expense of follow-up letters to shareholders who have not responded.</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LETTER-SPACING: -0.1pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow"></FONT>&nbsp;</P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 11pt" lang=EN-US face="Arial Narrow">CONTINUED AND TO BE SIGNED ON REVERSE SIDE</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow">SEE REVERSE SIDE </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&n
bsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;SEE REVERSE SIDE</FONT></P>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="LINE-HEIGHT: 7pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow">PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE UPPER PORTION IN THE ENCLOSED ENVELOPE.</FONT></P>
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<P style="BORDER-BOTTOM: medium none; BORDER-LEFT: medium none; PADDING-BOTTOM: 0in; MARGIN: 0in 0in 0pt; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; BORDER-TOP: medium none; BORDER-RIGHT: medium none; PADDING-TOP: 0in"><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow"></FONT>&nbsp;</P>
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<DIV style="BORDER-BOTTOM: windowtext 1.5pt solid; BORDER-LEFT: medium none; PADDING-BOTTOM: 1pt; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; BORDER-TOP: medium none; BORDER-RIGHT: medium none; PADDING-TOP: 0in">
<P style="BORDER-BOTTOM: medium none; BORDER-LEFT: medium none; PADDING-BOTTOM: 0in; MARGIN: 0in 0in 0pt; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; BORDER-TOP: medium none; BORDER-RIGHT: medium none; PADDING-TOP: 0in"><B><FONT style="FONT-SIZE: 14pt" lang=EN-US face="Arial Narrow">Annual Meeting Proxy Card&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow">THIS PROXY WILL BE VOTED AS DIRECTED, OR IF NO DIRECTION IS INDICATED, </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow">WILL BE VOTED &#147;FOR&#148; THE ELECTION OF ALL NOMINEES&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Please mark your votes as&nbsp;&nbsp; &#9632;</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&n
bsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; indicated in this example.</FONT></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face=Arial>A.&nbsp;&nbsp; Election of Trustees</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 10pt" lang=EN-US face="Arial Narrow">THE BOARD OF TRUSTEES UNANIMOUSLY RECOMMENDS A VOTE FOR </FONT></B><B><FONT style="FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow">THE ELECTION OF ALL NOMINEES</FONT></B><FONT style="FONT-SIZE: 10pt" lang=EN-US face="Arial Narrow">.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 10pt" lang=EN-US face="Arial Narrow">1.&nbsp; Proposal: Election of Nine Nominees for Trustee </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><B><FONT style="LINE-HEIGHT: 10pt; TEXT-TRANSFORM: uppercase; FONT-SIZE: 10pt" lang=EN-US face="Arial Narrow"></FONT></B>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;</FONT><B><FONT style="FONT-SIZE: 10pt" lang=EN-US face=Courier>WITHHOLD</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 10pt" lang=EN-US face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FOR ALL&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;FROM ALL</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face=Courier>NOMINEES:&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(</FONT><B><FONT style="FONT-SIZE: 10pt" lang=EN-US face=Courier>NOMINEES)&nbsp;&nbsp;&nbsp; (NOMINEES)</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face=Courier>(01) Harris J. Ashton&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (06) J. Michael Luttig&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=SV face=Courier>(02) Sam Ginn&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; (07) Frank A. Olson&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&nbsp; ] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [&nbsp; ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face=Courier>(03) Edith E. Holiday&nbsp;&nbsp; &nbsp; &nbsp;&nbsp;&nbsp; (08) Larry D. Thompson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face=Courier>(04) Charles B. Johnson&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; (09) John B. Wilson</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face=Courier>(05) Rupert H. Johnson, Jr.&nbsp;&nbsp; </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" lang=EN-US face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Courier>________________________________________________</FONT></P>
<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 8pt" lang=EN-US face=Courier>INSTRUCTION:&nbsp; To withhold authority to vote for any individual nominee, write that nominee's name </FONT></P>
<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 8pt" lang=EN-US face=Courier>in the space provided above.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></P>
<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 8pt" lang=EN-US face=Courier></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><FONT style="LINE-HEIGHT: 10pt; TEXT-TRANSFORM: uppercase; FONT-SIZE: 10pt" lang=EN-US face="Arial Narrow"></FONT></B>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow">Mark here if you plan to attend </FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow">the Meeting.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp; ]</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 0.5in"><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 9pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
<P style="TEXT-ALIGN: justify; TEXT-INDENT: -0.25in; MARGIN: 0in 0in 0pt 0.25in"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face=Arial>B.</FONT></B><B><FONT style="FONT-SIZE: 7pt" lang=EN-US face="Times New Roman">&nbsp;&nbsp;&nbsp; </FONT></B><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face=Arial>Authorized Signatures</FONT></B><B><FONT style="FONT-SIZE: 10pt" lang=EN-US face="Arial Narrow"> &#150; &nbsp;Sign Here - This section must be completed for your instructions to be executed.</FONT></B></P>
<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 8pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow">Note: </FONT><FONT style="LINE-HEIGHT: 8pt; FONT-SIZE: 8pt" lang=EN-US face=Courier>Sign your name exactly as it appears in the registration on the proxy card. If the shares are held jointly, either party may sign, but the name of the party signing should conform exactly to the name shown in the registration on the proxy card. If signing is by attorney, executor, administrator, trustee or guardian, please print your full title below your signature.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LETTER-SPACING: -0.1pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow"></FONT>&nbsp;</P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 8pt" lang=EN-US face="Arial Narrow">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><B><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 8pt" lang=EN-US face="Arial Narrow">Signature</FONT></B><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 8pt" lang=EN-US face="Arial Narrow">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 8pt" lang=EN-US face="Arial Narrow">Signature (Joint Owners) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FO
NT></B><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 8pt" lang=EN-US face="Arial Narrow">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 8pt" lang=EN-US face="Arial Narrow">Date (mm/dd/yyyy) Please print date below</FONT></B></P>
<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow">_________________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ___________________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; _____________________________________</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 9pt; FONT-SIZE: 9pt" lang=EN-US face="Arial Narrow"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 9pt" lang=EN-US face=Courier></FONT>&nbsp;</P>
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