<SEC-DOCUMENT>0000833040-12-000009.txt : 20120222
<SEC-HEADER>0000833040-12-000009.hdr.sgml : 20120222
<ACCEPTANCE-DATETIME>20120222121138
ACCESSION NUMBER:		0000833040-12-000009
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20120323
FILED AS OF DATE:		20120222
DATE AS OF CHANGE:		20120222
EFFECTIVENESS DATE:		20120222

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:		12629418

	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>futproxystatementv6-final.htm
<DESCRIPTION>FUT ANNUAL S/H MTG 3/23/12
<TEXT>

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   <TITLE>futproxystatementv6-final.htm - Generated by SEC Publisher for SEC Filing</TITLE>
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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="FONT-SIZE: 11pt" lang=EN-US face=courier></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">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="FONT-SIZE: 12pt" lang=EN-US face=Courier></FONT>&nbsp;</P></DIV>

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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&#8217; Meeting (the &#8220;Meeting&#8221;) of Franklin Universal Trust (the &#8220;Fund&#8221;) scheduled for Friday, March 23, 2012, at 2:00 p.m., Pacific Time. </FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US face="courier new">These materials discuss the proposal to be voted on at the Meeting, and 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&#8217;ll vote it as you indicated. If you simply sign, date and return the proxy card, but do not specify a vote on the proposal listed thereon, your proxy will be voted </FONT><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="courier new">FOR&nbsp;</FONT></B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="courier new"> the election of the nominees to the position of Trustee (the &#8220;Proposal&#8221;).</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="courier new"></FONT></B>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="courier new">We urge you to spend a few minutes reviewing the Proposal in the proxy statement. Then, please fill out and sign the proxy card and return it to us in the enclosed postage-paid envelope so that we know how you would like to vote. 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.</FONT></B></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="LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="courier new">We welcome your comments. If you have any questions, please call Fund Information at (800) DIAL BEN/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>

<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; 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></DIV>

<P style="MARGIN: 0in 0in 6pt 17pt"><FONT style="LINE-HEIGHT: 15pt; FONT-SIZE: 12pt" lang=EN-US face="courier new"></FONT>&nbsp;</P>

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<P style="TEXT-ALIGN: left; MARGIN: 0in 0in 15pt" align=left><FONT style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" lang=EN-US color=black face="courier new"></FONT>&nbsp;</P>

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<P style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align=right><FONT><FONT style="FONT-SIZE: 8pt" lang=EN-US face=TimesNewRomanPS>FUT Proxy 2012</FONT></FONT></P></DIV></DIV>

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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></font></p>





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<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">FRANKLIN UNIVERSAL TRUST</font></b></p>

<p style="margin-bottom:15.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">NOTICE OF
2012 ANNUAL SHAREHOLDERS&#8217; MEETING</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">The Annual Shareholders&#8217; Meeting (the &#8220;Meeting&#8221;) of Franklin
Universal Trust (the &#8220;Fund&#8221;) will be held at the Fund&#8217;s offices, One Franklin Parkway, San Mateo, California 94403, on Friday, March 23, 2012, at 2:00 p.m.,
Pacific Time.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">During the Meeting, shareholders of the Fund will vote on the
following:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.5in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&#8226;&nbsp;The election of a Board of
Trustees of the Fund; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.5in;"><font color=black face="courier new" lang=EN-US style="font-size:8.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.5in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&#8226;&nbsp;Such other matters as may
properly come before the Meeting.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">The Board of Trustees has fixed January 20, 2012 as the record
date for the determination of shareholders entitled to vote at the Meeting.</font><font face=arial lang=EN-US style="font-size:10.0pt;"> &nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:228.0pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">By Order of the Board of Trustees,</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Karen L. Skidmore</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">Vice President &amp; Secretary</font></i></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">San Mateo, California</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">Dated: February 17, 2012</font></p>

<p style="margin:0in;margin-bottom:6.0pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;">&nbsp;</font></p>

<div style="border:solid windowtext 1.0pt;padding:1.0pt 4.0pt 1.0pt 4.0pt;">

<p style="border:none;margin:0in;margin-bottom:6.0pt;padding:0in;"><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">IMPORTANT
NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL SHAREHOLDERS&#8217;
MEETING TO BE HELD ON MARCH 23, 2012.&#160; The Fund&#8217;s Notice of 2012 Annual
Shareholders&#8217; Meeting, proxy statement, and form of proxy are available on the
Internet at </font></b><b><u><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">www.proxyonline.us/docs/ft.pdf</font></u></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">.
The form of proxy on the Internet site cannot be used to cast your vote.</font></b></p>

</div>

<p style="margin:0in;margin-bottom:6.0pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.25pt;line-height:15.0pt;">&nbsp;</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">Please
sign and promptly return your proxy card in the self-addressed envelope
regardless of the number of shares you own.
</font></p>
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<p style="margin-bottom:15.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">FRANKLIN UNIVERSAL TRUST</font></b></p>

<p style="margin-bottom:15.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">PROXY
STATEMENT</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:14.0pt;font-style:normal;font-weight:normal;line-height:14.5pt;">&#9830;</font><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:14.5pt;"> INFORMATION
ABOUT VOTING</font></i></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;">&nbsp;</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">Who is asking for my vote?</font></i></b></p>

<p style="margin:0in;margin-bottom:6.0pt;margin-left:.7pt;margin-right:0in;margin-top:0in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">In this proxy statement for the Annual Shareholders&#8217; Meeting (the
&#8220;Meeting&#8221;) of Franklin Universal Trust (the &#8220;Fund&#8221;), the Fund&#8217;s Board of
Trustees (the &#8220;Board&#8221; or the &#8220;Trustees&#8221;) are </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;">unanimously&nbsp;</font><font color=black face="courier new" lang=EN-US style="font-size:11.0pt;letter-spacing:.25pt;"> </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">asking you to
vote </font><b><u><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">FOR&nbsp;</font></u></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;"> t</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;">he election of </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">your
Board&#8217;s </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;">nine </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">nominees </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;">to the position of &#173;Trustee</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;"> (the &#8220;Proposal&#8221;)
by promptly completing, signing, dating and returning the enclosed proxy card. </font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><i><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:14.5pt;">Who is eligible to vote?</font></i></b></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:14.5pt;">Shareholders of record at
the close of business on January 20, 2012, are entitled to be present and to
vote at the Meeting or any adjourned 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 statement,
and the proxy card were first mailed to shareholders of record on or about February
17, 2012.</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:14.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">On what issue am I being
asked to vote?</font></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font face=Times lang=EN-US style="font-size:11.0pt;line-height:normal;">&nbsp;</font></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" lang=EN-US style="font-size:12.0pt;font-style:normal;line-height:normal;">You are
being asked to vote on one Proposal:</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:14.5pt;">&#8226;&nbsp;The election of a
Board of Trustees of the Fund.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">&nbsp;</font></i></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><i><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:14.5pt;">How do the Fund&#8217;s Trustees
recommend that I vote?</font></i></b></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:14.5pt;">The Trustees unanimously
recommend that you vote </font><b><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:14.5pt;">FOR&nbsp;</font></b><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:14.5pt;"> the election of all nominees.</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:14.5pt;">&nbsp;</font></i></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">How do I ensure that my vote is accurately recorded?</font></i></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">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. </font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;">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&#8217;t specify a vote on the
Proposal, your shares will be voted </font><b><font face="courier new" lang=EN-US style="font-size:12.0pt;">FOR&nbsp;</font></b><font face="courier new" lang=EN-US style="font-size:12.0pt;"> the election of the nominees </font><font face="courier new" lang=EN-US style="font-size:12.0pt;">for the Board.</font></p>
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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">&nbsp;</font></i></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">May I revoke my proxy?</font></i></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">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 &#173;person.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">What if my shares are held in a bank or brokerage account?</font></i></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">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 &#8220;Legal Proxy&#8221; 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>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;font-style:normal;font-weight:normal;line-height:14.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:14.0pt;font-style:normal;font-weight:normal;line-height:14.5pt;">&#9830;</font><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:14.5pt;"> THE </font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;font-style:normal;line-height:14.5pt;">PROPOSAL:
ELECTION OF TRUSTEES</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;font-style:normal;line-height:14.5pt;">&nbsp;</font></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">How are nominees selected?</font></i></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;">T</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.75pt;line-height:15.0pt;">he Board has a Nominating Committee</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;"> 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 &#8220;interested
person&#8221; of the Fund as defined by the Investment Company Act of 1940, as
amended (the &#8220;1940 Act&#8221;). </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">Trustees who are not interested persons of the Fund are referred
to as &#8220;Independent Trustees,&#8221;</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;"> and Trustees
who are interested persons of the Fund are referred to as &#8220;Interested
Trustees.&#8221;</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;">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&#8217;s
qualifications, the </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.25pt;line-height:15.0pt;">Nominating Committee generally considers the potential
candidate&#8217;s educational background,</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;"> business or professional experience, and
reputation. In addition, the Nominating Committee has established as minimum
qualifications for Board membership as an Independent Trustee </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.25pt;line-height:15.0pt;">(1) that
such candidate be independent from relationships with the Fund&#8217;s investment
manager</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;"> and other principal service providers both within the terms and the spirit
of the statutory </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.25pt;line-height:15.0pt;">independence requirements specified under the 1940 Act
and the rules thereunder; (2) that such candidate demonstrate</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;"> &nbsp;</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;">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
candidate have no continuing relationship as a director, 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;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></font><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&nbsp;</font></font></p>





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<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">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 &#8220;Qualifying Fund Shareholders&#8221; (as defined below).&#160; 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&#8217;s offices and are presented with appropriate background
material concerning the candidate that demonstrates his or her ability to serve
as a Trustee, including as an Independent Trustee, of the Fund.&#160; 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 being made; (d) the name,
age, date of birth, business address and residence address of the person or
persons being recommended; (e) </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">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 (&#8220;SEC&#8221;) 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
&#8220;interested person&#8221; 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>
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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></font><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&nbsp;</font></font></p>





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<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">The
Nominating Committee may amend these procedures from time to time, including
the procedures relating to the evaluation of nominees and the process for
submitting recommendations to the Nominating Committee.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">The Board has adopted and approved a formal
written charter for the Nominating Committee. A copy of the charter was
attached as &#8220;Appendix A&#8221; to the proxy statement for the 2011 Annual Shareholders&#8217;
Meeting.</font></p>

<p style="margin-bottom:.0001pt;margin-left:17.3pt;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">&nbsp;</font></i></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">Who are the Fund&#8217;s Nominees and current members of
the Board of Trustees?</font></i></b></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:1.0pt;margin-right:0in;margin-top:0in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">The
Fund&#8217;s nominees and the current Trustees of the Fund are </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.5pt;">Harris
J. Ashton, Sam Ginn, Edith E. Holiday, </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">Charles B. Johnson, Rupert H. Johnson, Jr., J.
Michael Luttig, Frank A. Olson, Larry D. Thompson and John B. Wilson.&#160; As
described more fully below, these nominees </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.15pt;">have significant experience
managing investment vehicles.&#160; Several of the Fund&#8217;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.&#160; 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-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.5pt;line-height:15.0pt;">Interested Trustees of the Fund hold director and/or officer positions
with Franklin Resources, Inc.</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;"> </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.25pt;line-height:15.0pt;">(&#8220;Resources&#8221;) and its affiliates. Resources
is a &#173;publicly owned holding company, the principal</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;">
shareholders of which are Charles B. Johnson and Rupert H. Johnson, Jr., who
owned </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.5pt;line-height:15.0pt;">approximately 16.9% and 16.8%, respectively, of its outstanding shares
as of December 31, 2011</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;">. </font><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">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 color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;"> Resources,
a global investment management organization operating as Franklin </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;">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. (&#8220;NYSE&#8221;) 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>
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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></font><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&nbsp;</font></font></p>





</DIV>


<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;line-height:15.0pt;">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-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">In addition to
personal qualities, such as integrity, in considering candidates for the Board,
the Nominating Committee seeks to 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 in the table below, 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
operating 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>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.25pt;line-height:15.0pt;">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 color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">and other directorships held.</font></p>

<p style="margin:0in;margin-bottom:2.0pt;margin-left:17.0pt;margin-right:0in;margin-top:0in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:9.0pt;">&#160; &nbsp;</font></p>

<h1 align=left style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;text-align:left;text-indent:.25in;">&nbsp;</h1>
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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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</DIV>
<h1 align=left style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;text-align:left;text-indent:.25in;"><b><font color=black face="Courier New" style="font-size:10.0pt;letter-spacing:.5pt;">Nominees for Independent
Trustee</font></b></h1>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:495.900024pt;">
 <tr>
  <td width=20% style="background:#dfdfdf;border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Name, Year of Birth and
  Address</font></b></p>
  </td>
 <td width=20% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Position</font></b></p>
  </td>
 <td width=17% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Length of Time Served</font></b></p>
  </td>
 <td width=16% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:8.0pt;letter-spacing:.5pt;">Number of Portfolios in
  Fund Complex Overseen by Board Member*</font></b></p>
  </td>
 <td width=27% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Other Directorships Held</font></b></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:495.900024pt;">
 <tr>
  <td valign=top width=20% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Harris J. Ashton (1932)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">One
    Franklin Parkway</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">San
    Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=20% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">Trustee</font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">Since
  1988</font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">132</font></p>
  </td>
 <td valign=top width=26% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Bar-S Foods (meat packing
  company) (1981-2010).</font></p>
  </td>
 </tr>
<tr style="height:33.25pt;page-break-inside:avoid;">
  <td colspan=5 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:33.25pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Principal Occupation
  During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Director of various
  companies; and </font><b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">formerly</font></b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">, 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>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:495.900024pt;">
 <tr>
  <td valign=top width=20% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Sam
  Ginn (1937)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;layout-grid-mode:line;">One Franklin Parkway</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;layout-grid-mode:line;">San Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=20% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <h2 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;"><font face="courier new" style="font-size:9.0pt;font-weight:normal;">Trustee</font></h2>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Since
  2007</font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">107</font></p>
  </td>
 <td valign=top width=26% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">ICO
  Global Communications (Holdings) Limited (satellite company) (2006-2010),
  Chevron Corporation (global energy company) (1989-2009), Hewlett-Packard
  Company (technology company) (1996-2002), Safeway, Inc. (grocery retailer)
  (1991-1998) and TransAmerica Corporation (insurance company) (1989-1999).</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td colspan=5 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Principal
  Occupation During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Private
  investor; and </font><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">formerly,&nbsp;</font></b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;"> 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>
  </td>
 </tr>
</table></div>

<p style="margin-bottom:6.0pt;margin-left:17.0pt;margin-right:0in;margin-top:0in;"><font face=TimesNewRomanPS lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">&nbsp;</font></p>





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  <p style="margin:0in;margin-bottom:.0001pt;"><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;"></font></font><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;">6</font></font><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;"></font></font></p>

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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></font><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&nbsp;</font></font></p>





</DIV>
<p style="margin-bottom:6.0pt;margin-left:17.0pt;margin-right:0in;margin-top:0in;"><font face=TimesNewRomanPS lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:495.900024pt;">
 <tr>
  <td width=20% style="background:#dfdfdf;border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></b></p>
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Name, Year of Birth and
  Address</font></b></p>
  </td>
 <td width=20% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Position</font></b></p>
  </td>
 <td width=17% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Length of Time Served</font></b></p>
  </td>
 <td width=16% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:8.0pt;letter-spacing:.5pt;">Number of Portfolios in
  Fund Complex Overseen by Board Member*</font></b></p>
  </td>
 <td width=27% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Other Directorships Held</font></b></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:495.900024pt;">
 <tr>
  <td valign=top width=20% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Edith E. Holiday (1952)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">One
    Franklin Parkway
  </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">San
    Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=20% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">Trustee</font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">Since
  2004</font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">132</font></p>
  </td>
 <td valign=top width=26% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">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>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td colspan=5 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Principal Occupation
  During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Director or Trustee of
  various companies and trusts; and </font><b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">formerly</font></b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">, 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>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:495.900024pt;">
 <tr>
  <td valign=top width=20% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">J. Michael Luttig (1954)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">One
    Franklin Parkway
  </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">San
    Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=20% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">Trustee</font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Since 2009</font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">132</font></p>
  </td>
 <td valign=top width=26% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Boeing Capital Corporation
  (aircraft financing).</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td colspan=5 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Principal Occupation
  During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Executive Vice President,
  General Counsel and member of Executive Council, The Boeing Company; and </font><b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">formerly</font></b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">,
  Federal Appeals Court Judge, U.S. Court of Appeals for the Fourth Circuit
  (1991-2006).</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:495.900024pt;">
 <tr>
  <td valign=top width=20% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Frank A. Olson (1932)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">One
    Franklin Parkway
  </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">San
    Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=20% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">Trustee</font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Since 2005</font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">132</font></p>
  </td>
 <td valign=top width=26% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Hess Corporation
  (exploration and refining of oil and gas).</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td colspan=5 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Principal Occupation
  During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">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 color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">formerly</font></b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">, Chairman of the
  Board, President and Chief Executive Officer, UAL Corporation (airlines).</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" lang=EN-US style="font-size:10.0pt;line-height:normal;">&nbsp;</font></p>

<p style="margin-bottom:6.0pt;margin-left:17.0pt;margin-right:0in;margin-top:0in;"><font face=TimesNewRomanPS lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">&nbsp;</font></p>


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 <tr>
  <td align=left valign=top style="padding-bottom:0in;padding-left:0in;padding-right:0in;padding-top:0in;">

  <p style="margin:0in;margin-bottom:.0001pt;"><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;"></font></font><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;">7</font></font><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;"></font></font></p>

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<p align=right style="margin:0in;margin-bottom:.0001pt;margin-right:.25in;text-align:right;"><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div><a name="page_13"></a><a name="_bclPageBorder13"></a><DIV STYLE="WIDTH: 100%; PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></font><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&nbsp;</font></font></p>





</DIV>
<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:495.900024pt;">
 <tr>
  <td width=20% style="background:#dfdfdf;border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></b></p>
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Name, Year of Birth and
  Address</font></b></p>
  </td>
 <td width=20% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Position</font></b></p>
  </td>
 <td width=17% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Length of Time Served</font></b></p>
  </td>
 <td width=16% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:8.0pt;letter-spacing:.5pt;">Number of Portfolios in
  Fund Complex Overseen by Board Member*</font></b></p>
  </td>
 <td width=27% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Other Directorships Held</font></b></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:495.900024pt;">
 <tr>
  <td valign=top width=20% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:char;letter-spacing:.5pt;">Larry
  D. Thompson (1945)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:char;letter-spacing:.5pt;">One
    Franklin Parkway</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:char;letter-spacing:.5pt;">San
    Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=20% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face=Courier style="font-size:9.0pt;">Trustee</font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:char;letter-spacing:.5pt;">Since
  2007</font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:char;letter-spacing:.5pt;">142</font></p>
  </td>
 <td valign=top width=26% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:char;letter-spacing:.5pt;">Cbeyond,
  Inc. (business communications provider), The Southern Company (energy
  company) and The Washington Post Company (education and media organization). </font></p>
  </td>
 </tr>
<tr>
  <td colspan=5 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:char;letter-spacing:.5pt;">Principal Occupation During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:char;letter-spacing:.5pt;">John
  A. Sibley Professor of Corporate and Business Law, University of Georgia
  School of Law (2011); and </font><b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:char;letter-spacing:.5pt;">formerly,&nbsp;</font></b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:char;letter-spacing:.5pt;"> Senior Vice President - Government
  Affairs, General Counsel and Secretary, PepsiCo, Inc. (consumer products)
  (2004-May 2011); 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>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" lang=EN-US style="font-size:10.0pt;line-height:normal;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:495.899963pt;">
 <tr>
  <td valign=top width=20% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">John B. Wilson (1959)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">One
    Franklin Parkway
  </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">San
    Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=18% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">Lead
  Independent Trustee</font></p>
  </td>
 <td valign=top width=19% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Trustee since 2006 and Lead
  Independent Trustee since 2008</font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">107</font></p>
  </td>
 <td valign=top width=26% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">None</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td colspan=5 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Principal Occupation
  During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">President and Founder,
  Hyannis Port Capital, Inc. (real estate and private equity investing); serves
  on private and non-profit boards; and </font><b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">formerly</font></b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">, Chief Operating
  Officer and Executive Vice President, Gap, Inc. (retail) (1996-2000); Chief
  Financial Officer and Executive Vice President &#8211; Finance Strategy, Staples,
  Inc. (office supplies) (1992-1996); Senior Vice President &#8211; Corporate
  Planning, Northwest Airlines, Inc. (airlines) (1990-1992); and Vice President
  and Partner, Bain &amp; Company (consulting firm) (1986-1990).</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" lang=EN-US style="font-size:10.0pt;line-height:normal;">&nbsp;</font></p>





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  <td align=left valign=top style="padding-bottom:0in;padding-left:0in;padding-right:0in;padding-top:0in;">

  <p style="margin:0in;margin-bottom:.0001pt;"><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;"></font></font><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;">8</font></font><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;"></font></font></p>

  </td>
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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></font><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&nbsp;</font></font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" lang=EN-US style="font-size:9.0pt;line-height:normal;">&nbsp;</font></p>

<h1 align=left style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;text-align:left;"><b><font color=black face="Courier New" style="font-size:9.0pt;letter-spacing:.5pt;">Nominees for Interested Trustee</font></b></h1>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:495.900024pt;">
 <tr>
  <td width=20% style="background:#dfdfdf;border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Name, Year of Birth and
  Address</font></b></p>
  </td>
 <td width=20% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Position</font></b></p>
  </td>
 <td width=17% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Length of Time Served</font></b></p>
  </td>
 <td width=17% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Number of Portfolios in
  Fund Complex Overseen by Board Member*</font></b></p>
  </td>
 <td width=26% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Other Directorships Held</font></b></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:495.900024pt;">
 <tr>
  <td valign=top width=20% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">**Charles B. Johnson (1933)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">One
    Franklin Parkway
  </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">San
    Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=20% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Trustee and Chairman of the
  Board</font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Trustee since 1988 and
  Chairman of the Board since 1993</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">132</font></p>
  </td>
 <td valign=top width=26% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">None</font></p>
  </td>
 </tr>
<tr style="height:61.6pt;page-break-inside:avoid;">
  <td colspan=5 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:61.6pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">Principal Occupation
  During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:9.0pt;letter-spacing:.5pt;">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>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:495.900024pt;">
 <tr>
  <td valign=top width=20% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">**Rupert
  H. Johnson, Jr. (1940)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">One Franklin Parkway </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">San Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=20% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">Trustee
  and Senior Vice President </font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">Since
  1988 </font></p>
  </td>
 <td valign=top width=17% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">50</font></p>
  </td>
 <td valign=top width=26% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">None</font></p>
  </td>
 </tr>
<tr style="height:61.6pt;page-break-inside:avoid;">
  <td colspan=5 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:61.6pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Principal
  Occupation During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Vice
  Chairman, Member - Office of the Chairman and Director, Franklin Resources,
  Inc.;  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>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">*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;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">**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.&#160; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">Note 1: Charles B. Johnson and Rupert H. Johnson, Jr. are
brothers.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">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>





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  <p style="margin:0in;margin-bottom:.0001pt;"><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;"></font></font><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;">9</font></font><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;"></font></font></p>

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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></font><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&nbsp;</font></font></p>





</DIV>
<p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" lang=EN-US style="font-size:9.0pt;line-height:normal;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">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, 2011.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">Independent
Trustees:</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:540.899963pt;">
 <tr>
  <td valign=top width=27% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">Name of Trustee</font></b></p>
  </td>
 <td valign=top width=30% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">Dollar&nbsp;Range&nbsp;of&nbsp;Equity Securities in the Trust</font></b></p>
  </td>
 <td valign=top width=43% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="courier new" style="font-size:8.0pt;">Aggregate&nbsp;Dollar&nbsp;Range&nbsp;of&nbsp;Equity
  Securities&nbsp;in&nbsp;all&nbsp;Funds&nbsp;Overseen&nbsp;by&nbsp;the</font></b></p>
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="courier new" style="font-size:8.0pt;">Board Member in the
  Franklin Templeton</font></b></p>
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">Investments Fund Complex</font></b></p>
  </td>
 </tr>
<tr>
  <td valign=top width=27% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Harris J. Ashton</font></p>
  </td>
 <td valign=top width=30% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">$1-$10,000</font></p>
  </td>
 <td valign=top width=43% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=27% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Sam Ginn</font></p>
  </td>
 <td valign=top width=30% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">None</font></p>
  </td>
 <td valign=top width=43% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=27% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Edith E. Holiday</font></p>
  </td>
 <td valign=top width=30% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">None</font></p>
  </td>
 <td valign=top width=43% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=27% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">J. Michael Luttig</font></p>
  </td>
 <td valign=top width=30% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">None</font></p>
  </td>
 <td valign=top width=43% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=27% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Frank A. Olson</font></p>
  </td>
 <td valign=top width=30% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">None</font></p>
  </td>
 <td valign=top width=43% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=27% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Larry D. Thompson</font></p>
  </td>
 <td valign=top width=30% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">None</font></p>
  </td>
 <td valign=top width=43% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=27% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">John B. Wilson</font></p>
  </td>
 <td valign=top width=30% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">None</font></p>
  </td>
 <td valign=top width=43% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Over $100,000</font></p>
  </td>
 </tr>
</table></div>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">&nbsp;</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">Interested
Trustees:</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:540.899963pt;">
 <tr>
  <td valign=top width=27% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">Name of Trustee</font></b></p>
  </td>
 <td valign=top width=30% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">Dollar&nbsp;Range&nbsp;of&nbsp;Equity Securities in the Trust</font></b></p>
  </td>
 <td valign=top width=43% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="courier new" style="font-size:8.0pt;">Aggregate&nbsp;Dollar&nbsp;Range&nbsp;of&nbsp;Equity
  Securities&nbsp;in&nbsp;all&nbsp;Funds&nbsp;Overseen&nbsp;by&nbsp;the</font></b></p>
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="courier new" style="font-size:8.0pt;">Board Member in the
  Franklin Templeton</font></b></p>
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">Investments Fund Complex</font></b></p>
  </td>
 </tr>
<tr>
  <td valign=top width=27% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Charles B. Johnson</font></p>
  </td>
 <td valign=top width=30% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">$1-$10,000</font></p>
  </td>
 <td valign=top width=43% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=27% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Rupert H. Johnson, Jr.</font></p>
  </td>
 <td valign=top width=30% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">$1-$10,000</font></p>
  </td>
 <td valign=top width=43% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">Over $100,000</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" lang=EN-US style="font-size:9.0pt;line-height:normal;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" lang=EN-US style="font-size:9.0pt;line-height:normal;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:17.3pt;margin-right:0in;margin-top:0in;text-indent:-17.3pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">How often do the Trustees meet
and what are they paid?</font></i></b></p>

<p style="margin-bottom:0in;margin-left:.5in;margin-right:0in;margin-top:0in;text-indent:-.5in;"><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Courier New" lang=EN-US style="font-size:12.0pt;">The role of
the Trustees is to provide general oversight of the Fund&#8217;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 color=navy face="Courier New" lang=EN-US style="font-size:12.0pt;"> </font><font face="Courier New" lang=EN-US style="font-size:12.0pt;">times
during the current fiscal year to review the operations of the Fund and the
Fund&#8217;s investment performance. The Trustees also oversee the services furnished
to the Fund by Franklin Advisers, Inc., the Fund&#8217;s investment manager (the
&#8220;Investment Manager&#8221;), and various other service providers. </font></p>


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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></font><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&nbsp;</font></font></p>





</DIV>
<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Courier New" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Courier New" lang=EN-US style="font-size:12.0pt;">The Fund&#8217;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, compensation may also be paid for
attendance at specially held Board meetings. The Fund&#8217;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>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=navy face=arial lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;">During the fiscal year ended &#173;August 31, 2011, there were eight</font><u><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;">
</font></u><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;">meetings of the Board, one meeting 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. &#160;</font></p>

<p style="margin-bottom:0in;margin-left:.25in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;">The Fund does not currently have a formal policy regarding
Trustees&#8217; attendance at the Annual Shareholders&#8217; Meeting. None of the Trustees
attended the Fund&#8217;s last annual meeting held on March 25, 2011.</font></p>

<p style="margin-bottom:0in;margin-left:.25in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;">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 &#173;expenses.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.25in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">The
table below 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&#8217;s management
believe that having the same individuals </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">serving on
the boards of many of the funds in the 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>
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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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<p style="margin-bottom:6.0pt;margin-left:17.0pt;margin-right:0in;margin-top:0in;"><font face=TimesNewRomanPS lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:557.999939pt;">
 <tr>
  <td valign=top width=23% style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">&nbsp;</font></b></p>
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">&nbsp;</font></b></p>
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">&nbsp;</font></b></p>
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">Name of Trustee</font></b></p>
  </td>
 <td valign=top width=25% style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">&nbsp;</font></b></p>
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">&nbsp;</font></b></p>
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">Aggregate Compensation from the Trust</font></b><sup><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">(1)</font></sup></p>
  </td>
 <td valign=top width=26% style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">&nbsp;</font></b></p>
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">Total Compensation from Franklin Templeton Investments
  Fund Complex</font></b><sup><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">(2)</font></sup></p>
  </td>
 <td valign=top width=26% style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">Number of Boards within Franklin Templeton Investments
  Fund Complex on which Trustee Serves</font></b><sup><font face="courier new" style="font-size:8.0pt;line-height:15.0pt;">(3)</font></sup></p>
  </td>
 </tr>
<tr>
  <td valign=top width=23% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face="courier new" style="font-size:9.0pt;">Harris J. Ashton</font></p>
  </td>
 <td valign=top width=25% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;">$1,171</font></p>
  </td>
 <td valign=top width=26% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;">$468,000</font></p>
  </td>
 <td valign=top width=26% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;">41</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=23% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face="courier new" style="font-size:9.0pt;">Sam Ginn</font></p>
  </td>
 <td valign=top width=25% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;">1,171</font></p>
  </td>
 <td valign=top width=26% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;"> 288,000</font></p>
  </td>
 <td valign=top width=26% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;">27</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=23% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face="courier new" style="font-size:9.0pt;">Edith E. Holiday</font></p>
  </td>
 <td valign=top width=25% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;">1,171</font></p>
  </td>
 <td valign=top width=26% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;"> 503,000</font></p>
  </td>
 <td valign=top width=26% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;">41</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=23% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face="courier new" style="font-size:9.0pt;">J. Michael Luttig</font></p>
  </td>
 <td valign=top width=25% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">3,176</font></p>
  </td>
 <td valign=top width=26% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;"> 488,000</font></p>
  </td>
 <td valign=top width=26% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;">41</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=23% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face="courier new" style="font-size:9.0pt;">Frank A. Olson</font></p>
  </td>
 <td valign=top width=25% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">3,176</font></p>
  </td>
 <td valign=top width=26% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;"> 486,000</font></p>
  </td>
 <td valign=top width=26% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;">41</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=23% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-left:.1pt;margin-right:0in;text-indent:-.1pt;"><font face="courier new" style="font-size:9.0pt;">Larry D. Thompson</font></p>
  </td>
 <td valign=top width=25% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">1,171</font></p>
  </td>
 <td valign=top width=26% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;"> 593,000</font></p>
  </td>
 <td valign=top width=26% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;text-indent:.4pt;"><font face="courier new" style="font-size:9.0pt;">44</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=23% style="padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-left:.05pt;margin-right:0in;text-indent:-.05pt;"><font face="courier new" style="font-size:9.0pt;">John B. Wilson</font></p>
  </td>
 <td valign=top width=25% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;">3,223</font></p>
  </td>
 <td valign=top width=26% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;line-height:15.0pt;"> 375,000</font></p>
  </td>
 <td valign=top width=26% style="padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face="courier new" style="font-size:9.0pt;">27</font></p>
  </td>
 </tr>
</table></div>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face=TimesNewRomanPS lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">&nbsp;</font></p>

<div style="border:none;border-bottom:solid windowtext 1.0pt;margin-left:0in;margin-right:5.0in;padding:0in 0in 1.0pt 0in;">

<p style="border:none;margin-bottom:3.0pt;margin-left:0in;margin-right:0in;margin-top:0in;padding:0in;"><font face="Times New Roman" lang=EN-US style="font-size:6.0pt;line-height:6.0pt;">&nbsp;</font></p>

</div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">(1) Compensation
received for the fiscal year ended August 31, 2011.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">(2) Compensation
received for the calendar year ended December 31, 2011. </font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Courier New" lang=EN-US style="font-size:9.0pt;">(3)&#160; 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 46 U.S. registered investment companies, with
approximately 149 U.S. based funds or series. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" lang=EN-US style="font-size:9.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">Board
members historically have followed a policy of having substantial investments
in one </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;">or more of the funds in Franklin Templeton Investments, as
is consistent with their individual</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;"> </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.5pt;">financial goals. In Feb&#173;ruary 1998, this
policy was formalized through adoption of a requirement</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;"> that each board member
invest one-third of fees received for serving as a director or trustee </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.25pt;">of a
Templeton fund (excluding committee fees) in shares of one or more Templeton
funds and &#173;one-third of fees received</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;"> for serving as a director or trustee of a Franklin
fund (excluding committee fees) in shares of one or more Franklin funds until
the value of such investments equals or exceeds five times the annual retainer
and regular board meeting fees paid to such board member. Investments in the
name of family members or entities controlled by a board member </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">constitute fund holdings of such board member for
purposes of this policy, and a three year &#173; phase-in period applies to such
investment requirements for newly elected board members. In implementing such
policy, a board member&#8217;s fund holdings existing on Feb&#173;ruary 27, 1998, were
valued as of such date with subsequent investments valued &#173;at cost.</font></p>
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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></font><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&nbsp;</font></font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin-bottom:6.0pt;margin-left:12.0pt;margin-right:0in;margin-top:0in;text-indent:-12.0pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">&nbsp;</font></i></b></p>

<p style="margin-bottom:6.0pt;margin-left:12.0pt;margin-right:0in;margin-top:0in;text-indent:-12.0pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">Who are the
Executive Officers of &#173;the Fund?</font></i></b></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;">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 his or her position and
length of service with the Fund:</font></p>

<h1 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;text-align:center;"><b><font color=black face="Courier New" style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></b></h1>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td width=21% style="background:#dfdfdf;border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Name, Year of Birth and
  Address</font></b></p>
  </td>
 <td width=21% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Position</font></b></p>
  </td>
 <td width=58% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Length of Time Served</font></b></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.5in;"><font color=black face="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td valign=top width=21% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">**Charles
  B. Johnson (1933)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">One Franklin Parkway </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">San Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=21% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Trustee
  and Chairman of the Board</font></p>
  </td>
 <td valign=top width=58% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Trustee
  since 1988 and Chairman of the Board since 1993</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:61.6pt;page-break-inside:avoid;">
  <td colspan=3 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:61.6pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Principal
  Occupation During Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Please
  refer to the table &#8220;Nominees for Interested Trustee&#8221; for additional
  information about Mr. Charles B. Johnson.</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td valign=top width=21% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">**Rupert
  H. Johnson, Jr. (1940)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">One Franklin Parkway </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">San Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=21% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">Trustee
  and Senior Vice President </font></p>
  </td>
 <td valign=top width=58% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">Since
  1988 </font></p>
  </td>
 </tr>
<tr style="height:61.6pt;page-break-inside:avoid;">
  <td colspan=3 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:61.6pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Principal
  Occupation During Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Please
  refer to the table &#8220;Nominees for Interested Trustee&#8221; for additional
  information about Mr. Rupert H. Johnson, Jr.</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td valign=top width=21% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">James
  M. Davis</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">(1952)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">One
    Franklin Parkway
  </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">San
    Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=21% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Chief
  Compliance Officer </font></p>
  </td>
 <td valign=top width=58% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Since
  2004 </font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td colspan=3 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Principal Occupation During at Least the Past 5
  Years: </font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Director,
  Global Compliance, Franklin Resources, Inc.; and officer of 46 of the
  investment companies in Franklin Templeton Investments.</font></p>
  </td>
 </tr>
</table></div>


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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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</DIV>
<h1 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;text-align:center;"><b><font color=black face="Courier New" style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></b></h1>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td width=21% style="background:#dfdfdf;border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Name, Year of Birth and
  Address</font></b></p>
  </td>
 <td width=21% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Position</font></b></p>
  </td>
 <td width=58% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Length of Time Served</font></b></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td valign=top width=21% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Laura
  F. Fergerson (1962)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">One
    Franklin Parkway</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">San
    Mateo,</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">CA
  94403-1906</font></p>
  </td>
 <td valign=top width=22% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Chief
  Executive Officer &#8211; Finance and </font><font color=black face="courier new" style="font-size:8.0pt;letter-spacing:.5pt;">Administration&nbsp;</font></p>
  </td>
 <td valign=top width=57% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Since
  2009</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td colspan=3 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Principal
  Occupation During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Senior
  Vice President, Franklin Templeton Services, LLC; officer of 46 of the
  investment companies in Franklin Templeton Investments; and </font><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">formerly,&nbsp;</font></b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">
  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>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td valign=top width=21% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Gaston
  Gardey (1967)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">One
    Franklin Parkway</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">San
    Mateo,</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">CA
  94403-1906</font></p>
  </td>
 <td valign=top width=21% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Treasurer,
  Chief Financial Officer and Chief Accounting Officer</font></p>
  </td>
 <td valign=top width=58% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Since
  2009</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td colspan=3 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Principal
  Occupation During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Director,
  Fund Accounting, Franklin Templeton Investments; and officer of 27 of the
  investment companies in Franklin Templeton Investments.</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td valign=top width=21% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Aliya
  S. Gordon (1973)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">One
    Franklin Parkway</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">San
    Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=21% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Vice
  President</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=58% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Since
  2009</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td colspan=3 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Principal
  Occupation During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Senior
  Associate General Counsel, Franklin Templeton Investments; officer of 46 of
  the investment companies in Franklin Templeton Investments; and </font><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">formerly, </font></b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Litigation
  Associate, Steefel, Levitt &amp; Weiss, LLP (2000-2004).</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td valign=top width=21% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">David
  P. Goss (1947)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">One
    Franklin Parkway
  </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">San
    Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=21% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">Vice
  President</font></p>
  </td>
 <td valign=top width=58% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">Since
  2000</font></p>
  </td>
 </tr>
<tr style="height:61.6pt;page-break-inside:avoid;">
  <td colspan=3 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:61.6pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Principal
  Occupation During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;layout-grid-mode:line;letter-spacing:.5pt;">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 46 of the investment
  companies in Franklin Templeton Investments.</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>




<h1 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;text-align:center;">&nbsp;</h1>
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  <p style="margin:0in;margin-bottom:.0001pt;"><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;"></font></font><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;">14</font></font><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;"></font></font></p>

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<p align=right style="margin:0in;margin-bottom:.0001pt;margin-right:.25in;text-align:right;"><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





</DIV>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div><a name="page_20"></a><a name="_bclPageBorder20"></a><DIV STYLE="WIDTH: 100%; PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></font><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&nbsp;</font></font></p>





</DIV>
<h1 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;text-align:center;"><b><font color=black face="Courier New" style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></b></h1>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td width=21% style="background:#dfdfdf;border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Name, Year of Birth and
  Address</font></b></p>
  </td>
 <td width=21% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Position</font></b></p>
  </td>
 <td width=58% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Length of Time Served</font></b></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td valign=top width=21% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Steven
  J. Gray (1955)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">One
    Franklin Parkway
  </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">San
    Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=21% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Vice
  President</font></p>
  </td>
 <td valign=top width=58% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Since
  2009</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td colspan=3 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Principal
  Occupation During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Senior
  Associate General Counsel, Franklin Templeton Investments; Vice President,
  Franklin Templeton Distributors, Inc.; and officer of 46 of the investment
  companies in Franklin Templeton Investments.</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr style="height:107.5pt;">
  <td valign=top width=21% style="border:solid windowtext 1.0pt;height:107.5pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Edward
  B. Jamieson (1948)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">One
    Franklin Parkway
  </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">San
    Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=21% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;height:107.5pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">President
  and Chief Executive Officer &#8211; Investment Management </font></p>
  </td>
 <td valign=top width=58% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;height:107.5pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">President
  since 1993 and Chief Executive Officer &#8211; Investment Management since 2002</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td colspan=3 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Principal
  Occupation During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">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>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td valign=top width=21% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Robert
  C. Rosselot (1960)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">300
    S.E. 2nd Street</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Fort
    Lauderdale, FL 33301-1923</font></p>
  </td>
 <td valign=top width=21% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Vice
  President</font></p>
  </td>
 <td valign=top width=58% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Since
  2009</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td colspan=3 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Principal
  Occupation During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">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 46 of the
  investment companies in Franklin Templeton Investments.</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td valign=top width=21% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Karen
  L. Skidmore (1952)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">One
    Franklin Parkway
  </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">San
    Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=21% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Vice
  President and Secretary</font></p>
  </td>
 <td valign=top width=58% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Since
  2006 </font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td colspan=3 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Principal
  Occupation During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Senior
  Associate General Counsel, Franklin Templeton Investments; and officer of 46
  of the investment companies in Franklin Templeton Investments.</font></p>
  </td>
 </tr>
</table></div>

<p style="margin-bottom:6.0pt;margin-left:17.0pt;margin-right:0in;margin-top:0in;"><font face=TimesNewRomanPS lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">&nbsp;</font></p>




<h1 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;text-align:center;">&nbsp;</h1>
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  <p style="margin:0in;margin-bottom:.0001pt;"><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;"></font></font><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;">15</font></font><font face=timesnewromanps style=""><font face=timesnewromanps style="font-size:10.0pt;"></font></font></p>

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<p align=right style="margin:0in;margin-bottom:.0001pt;margin-right:.25in;text-align:right;"><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div><a name="page_21"></a><a name="_bclPageBorder21"></a><DIV STYLE="WIDTH: 100%; PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></font><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&nbsp;</font></font></p>





</DIV>
<h1 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;text-align:center;"><b><font color=black face="Courier New" style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></b></h1>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td width=21% style="background:#dfdfdf;border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Name, Year of Birth and
  Address</font></b></p>
  </td>
 <td width=21% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Position</font></b></p>
  </td>
 <td width=58% style="background:#dfdfdf;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Length of Time Served</font></b></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td valign=top width=21% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Craig
  S. Tyle (1960)</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">One
    Franklin Parkway
  </font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">San
    Mateo, CA 94403-1906</font></p>
  </td>
 <td valign=top width=21% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Vice
  President</font></p>
  </td>
 <td valign=top width=58% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Since
  2005</font></p>
  </td>
 </tr>
<tr style="page-break-inside:avoid;">
  <td colspan=3 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Principal
  Occupation During at Least the Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">General
  Counsel and Executive Vice President, Franklin Resources, Inc.; officer of
  some of the other subsidiaries of Franklin Resources, Inc. and of 46 of the
  investment companies in Franklin Templeton Investments; and </font><b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">formerly</font></b><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">,
  Partner, Shearman &amp; Sterling, LLP (2004-2005); and General Counsel,
  Investment Company Institute (ICI) (1997-2004).</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:474.299988pt;">
 <tr>
  <td valign=top width=21% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Courier New" style="font-size:9.0pt;layout-grid-mode:char;line-height:normal;">Lori
  A. Weber (1964)</font></p>
  <p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Courier New" style="font-size:9.0pt;layout-grid-mode:char;line-height:normal;">300
    S.E. 2<sup>nd</sup> Street</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">Fort
    Lauderdale,</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;layout-grid-mode:char;letter-spacing:.5pt;">FL 33301-1923</font></p>
  </td>
 <td valign=top width=19% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;">Vice
  President </font></p>
  </td>
 <td valign=top width=60% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" style="font-size:9.0pt;layout-grid-mode:char;">Since May 2011</font></p>
  </td>
 </tr>
<tr>
  <td colspan=3 valign=top width=100% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:9.0pt;layout-grid-mode:char;letter-spacing:.5pt;">Principal Occupation During at Least the
  Past 5 Years:</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;layout-grid-mode:char;letter-spacing:.5pt;">Associate General Counsel, Franklin Templeton
  Investments; Assistant Secretary, Franklin Resources, Inc.; Vice President
  and Assistant Secretary, Templeton Investment Counsel, LLC; and officer of 45
  of the investment companies in Franklin Templeton Investments.</font></p>
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<p style="margin-bottom:6.0pt;margin-left:17.0pt;margin-right:0in;margin-top:0in;"><font face=TimesNewRomanPS lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">&nbsp;</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:14.0pt;line-height:15.0pt;">&#9830; </font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">ADDITIONAL INFORMATION ABOUT &#173;THE
FUND</font></b></p>

<p style="margin-bottom:6.0pt;margin-left:.3pt;margin-right:0in;margin-top:6.0pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">The Investment Manager.</font></i></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">&nbsp;The
Investment Manager is Franklin Advisers, Inc., a California </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">corporation, whose principal
address is One Franklin Parkway, San Mateo, CA 94403.</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;"> The Investment Manager is a &#173;wholly-owned subsidiary of Resources.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">The Administrator.</font></i></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">&nbsp;The
administrator of the Fund is Franklin Templeton Services, LLC (&#8220;FT Services&#8221;),
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, &#173;wholly-owned subsidiary of &#173;Resources.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">The Transfer Agent.</font></i></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">&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-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">The Custodian.</font></i></b><font color=black face="courier new" lang=EN-US style="font-size:11.0pt;letter-spacing:.5pt;">&nbsp;</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">Bank of New York, Mutual Funds Division, 90 Washington Street, New York, NY 10286, acts as custodian of the Fund&#8217;s securities and other &#173;assets. </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&#160;&nbsp;</font></p>


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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></font><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&nbsp;</font></font></p>





</DIV>
<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">Reports to Shareholders and Financial
Statements.</font></i></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">&nbsp;The Fund&#8217;s last audited financial statements and
annual report for the fiscal year ended &#173; August 31, 2011, are available free
of charge. To obtain a copy, please call </font><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">(800)
DIAL BEN/342-5236 </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">or forward a
written request to </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">Franklin Templeton Investor
Services, LLC, P.O. Box 997151, Sacramento, CA &#173; 95899-9983.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">Principal
Shareholders.</font></i></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;As of January 20, 2012, the Fund had 25,131,894
shares </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">outstanding
and total net assets of $179,252,987.&#160; The Fund&#8217;s shares are listed on the NYSE</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;"> (symbol: FT). From time to time, the number of
shares held in &#8220;street name&#8221; accounts of various securities dealers for the
benefit of their clients may exceed 5% of the total shares outstanding.&#160; To the
knowledge of the Fund&#8217;s management, as of January 20, 2012, there </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.25pt;line-height:normal;">were no other entities holding beneficially or of
record more than 5% of the Fund&#8217;s outstanding</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;"> shares.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.25pt;line-height:normal;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.25pt;line-height:normal;">In
addition, to the knowledge of the Fund&#8217;s management, as of January 20, 2012, no&#160;
Trustee</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;"> 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 &#173;the Fund.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;</font></i></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">Contacting
the Board of Trustees.</font></i></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&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&#8217;s offices, One Franklin Parkway,
 San Mateo, California 94403. The correspondence will then be given to the
Board for their review and &#173;consideration.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">&nbsp;</font></i></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:14.0pt;line-height:15.0pt;">&#9830; </font></i></b><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">AUDIT COMMITTEE</font></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;font-style:normal;font-weight:normal;letter-spacing:.5pt;">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 &#8220;independent&#8221; as that term is defined by the NYSE&#8217;s listing standards.
The Fund&#8217;s Audit Committee is responsible for the appointment, compensation and
retention of the Fund&#8217;s independent registered public accounting firm
(auditors), including evaluating their independence, recommending the selection
of the Fund&#8217;s auditors to the full Board, and meeting with such auditors to
consider and review matters relating to the Fund&#8217;s financial reports and
internal accounting. </font></p>

<p style="margin-bottom:0in;margin-left:17.3pt;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">&nbsp;</font></i></b></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">Selection of
Auditors</font></i></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">.&nbsp;</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">The Audit Committee and the Board have
selected the firm of PricewaterhouseCoopers LLP (&#8220;PwC&#8221;) as auditors of the Fund
for the current fiscal year. Representatives of PwC are </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">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>
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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></font><font style=""><font face=Courier lang=EN-US style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&nbsp;</font></font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;</font></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">Audit Fees</font></i></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">.&nbsp;</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">The aggregate fees paid to PwC
for professional services rendered by PwC for the audit of the Fund&#8217;s annual
financial statements or for services that are normally provided by PwC in
connection with statutory and regulatory filings or engagements were $35,855
for the fiscal year ended August 31, 2011, and $33,631 for the fiscal year
ended August 31, 2010.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">&nbsp;</font></i></b></p><p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">Audit-Related Fees</font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">.</font></b><font color=black face="courier new" lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">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 &#8220;Audit Fees&#8221; above for the fiscal years ended August 31, 2011 and August 31, 2010.&#160; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">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, 2011 and August 31, 2010. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">&nbsp;</font></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">Tax Fees</font></i></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">.&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, 2011 and
August 31, 2010.</font></p>

<p style="margin-bottom:.0001pt;margin-left:17.3pt;margin-right:0in;margin-top:0in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">&#160;&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">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 $85,000 for the fiscal year ended August 31, 2011,
and $0 for the fiscal year ended August 31, 2010.&#160; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;</font></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">All Other
Fees</font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">.&nbsp;</font></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;"> </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">The fees paid to PwC for products and services rendered by PwC to
the Fund, not reported in previous paragraphs, were $63 the fiscal year ended
August 31, 2011 and $0 for the fiscal year ended August 31, 2010.&#160; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=blue face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">The 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, were $144,737
for the fiscal year ended August 31, 2011 and $0 for the fiscal year ended August
31, 2010</font><font color=blue face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">.&#160; &nbsp;</font></p>


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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;</font></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">Audit
Committee &#173;Pre-Approval Policies and Procedures</font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">.&nbsp;</font></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">As of the
date of this proxy statement, the Audit Committee has not adopted &#173;pre-approval
policies and procedures. As a </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">result, all such services described above and provided by PwC must
be directly &#173; pre-approved</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;"> by the Audit &#173;Committee.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">&nbsp;</font></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">Aggregate Non-Audit Fees</font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">.</font></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">&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 $229,800 for the
fiscal year ended August 31, 2011, and $0 for the fiscal year ended August 31,
2010.</font></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:12.0pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">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>

<p style="margin-bottom:.0001pt;margin-left:17.3pt;margin-right:0in;margin-top:0in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">Audit
Committee Report</font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">.</font></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;The Board has adopted and approved a
revised formal written charter for the Audit Committee, which sets forth the
Audit Committee&#8217;s responsibilities. A copy of the charter is attached as </font><font face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&#8220;Appendix A&#8221; to this
proxy statement.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">As required
by the charter, the Audit Committee reviewed the Fund&#8217;s audited financial
statements and met with management, as well as with PwC, the Fund&#8217;s auditors,
to discuss the financial statements.</font></p>

<p style="margin-bottom:.0001pt;margin-left:17.3pt;margin-right:0in;margin-top:0in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">The Audit
Committee received the written disclosures and the letter from PwC required by </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">Independence Standards Board
Standard No. 1. The Audit Committee also received the report</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;"> of PwC regarding the results of their audit. In
connection with their review of the financial statements and the auditors&#8217;
report, the members of the Audit Committee discussed with a </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.5pt;line-height:normal;">representative of PwC, PwC&#8217;s independence, as well
as the following: the auditors&#8217; responsibilities</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;"> in accordance with generally accepted auditing standards; the auditors&#8217;
responsibilities for </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.25pt;line-height:normal;">information
prepared by the Fund&#8217;s management that accompanies the Fund&#8217;s audited financial
statements</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;"> 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&#8217;s management&#8217;s
judgments and accounting estimates; whether there were any significant audit
adjustments; </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">whether there were any disagreements with the Fund&#8217;s management;
whether there was any consultation</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;"> with other
</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">accountants; whether there were any major issues
discussed with the Fund&#8217;s management prior to the auditors&#8217; retention; whether
the auditors encountered any difficulties in dealing with the Fund&#8217;s management
in performing the audit; and the auditors&#8217; judgments about the quality of the
Fund&#8217;s accounting &#173; principles.</font></p>
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<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">Based on its
review and discussions with the Fund&#8217;s management and the Fund&#8217;s auditors, the
Audit </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">Committee did
not become aware of any material misstatements or omissions in the financial</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;"> statements.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">Accordingly,
the Audit Committee recommended to the Board that the audited financial
statements be included in the Fund&#8217;s Annual Report to Shareholders for the fiscal
year ended &#173;August 31, 2011, for filing with &#173;the </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">SEC</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">.&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:17.3pt;margin-right:0in;margin-top:0in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:17.0pt;text-indent:343.0pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">THE AUDIT
COMMITTEE</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:17.0pt;text-indent:343.0pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">John B. Wilson
(Chairman)</font></p>

<p style="margin-bottom:.0001pt;margin-left:5.0in;margin-right:0in;margin-top:0in;"><font face="courier new" lang=SV style="font-size:12.0pt;line-height:normal;">J. Michael Luttig</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:5.0in;"><font face="courier new" lang=SV style="font-size:12.0pt;line-height:normal;">Frank A.
Olson</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="courier new" lang=SV style="font-size:12.0pt;line-height:normal;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:14.0pt;letter-spacing:.5pt;">&#9830;</font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;"> </font></b><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">ADDITIONAL INFORMATION ABOUT
THE BOARD</font></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face=TimesNewRomanPS lang=SV style="font-size:9.0pt;line-height:normal;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">Board
Role in Risk Oversight.</font></i></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;"> 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;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">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 </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">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 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;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">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;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">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 (&quot;CCO&quot;) 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;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">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;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">Board
Structure.</font></i></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">
Seventy-five percent or more of Board members consist of Independent Trustees
who are not deemed to be &quot;interested persons&quot; 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 </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">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;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:14.0pt;letter-spacing:.5pt;">&#9830;</font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;"> FURTHER INFORMATION ABOUT
VOTING AND THE &#173;MEETING</font></b></p>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">Solicitation
of Proxies</font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">.</font></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;&nbsp;</font><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">
Your vote is being solicited by the Board. The 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>

<p style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">Voting by &#173;Broker-Dealers</font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">.</font></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;The
Fund expects that, before the Meeting, broker-dealer firms holding shares of
the Fund in &#8220;street name&#8221; 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&#8217; 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.&#160; Accordingly, the Fund does not anticipate receiving any &#8220;broker
non-votes&#8221; (i.e., proxy cards returned by broker-dealers without voting
instructions for shares held of </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">record). </font></p>
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<p style="margin:0in;margin-bottom:.0001pt;"><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font><font style=""><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">&#160;&nbsp;</font></font><font face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;">FUT Proxy 2012</font></p>





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</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div><a name="page_28"></a><a name="_bclPageBorder28"></a><DIV STYLE="WIDTH: 100%; PADDING-RIGHT: 0%; PADDING-LEFT: 0%">


<p style="margin-bottom:.0001pt;margin-left:17.0pt;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;</font></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">Quorum</font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">.</font></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;Forty percent
of the shares entitled to vote &#8212; present in person or represented by proxy &#8212;
constitutes a quorum at the Meeting. The shares over which &#173;broker-dealers have
discretionary voting power, the shares that represent &#8220;broker &#173; non-votes&#8221;
(i.e., shares held by brokers or nominees as to which (i) instructions have not
been received from the beneficial </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">owners or persons entitled to vote and (ii) the broker or nominee
does not have discretionary</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;"> 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 &#173;exists.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">Required Vote</font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">.</font></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&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>

<p style="margin-bottom:.0001pt;margin-left:17.3pt;margin-right:0in;margin-top:0in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:normal;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">Adjournment</font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">.</font></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">&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.&#160; If the Meeting is adjourned, notice </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.5pt;line-height:normal;">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 color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;"> is for more than 60 days from
the date set for the original Meeting, in which case the Board </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.25pt;line-height:normal;">of Trustees shall set a new date. At any
adjourned Meeting, the Fund may transact any business</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;"> which might have
been transacted at the original Meeting. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">Whether or not a quorum is
present, </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.25pt;line-height:normal;">the persons named as proxies may
propose one or more adjournments</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;"> of the Meeting to permit the further
solicitation of proxies. The persons named as proxies will vote in their </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.25pt;line-height:normal;">discretion on questions of adjournment those
shares for which proxies have been received that</font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;"> grant discretionary
authority to vote on matters that may properly come before the &#173;Meeting, and on
any other proposals properly raised at the Meeting to the extent permitted by
the SEC&#8217;s proxy rules, including proposals for which management of the Fund did
not have timely notice, as set forth in the SEC&#8217;s proxy rules.</font></p>

<p style="margin-bottom:.0001pt;margin-left:17.3pt;margin-right:0in;margin-top:0in;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">&nbsp;</font></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">Shareholder Proposals</font></i></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">.</font></b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">&nbsp; The Fund anticipates
mailing this proxy statement on or about February 17, 2012. The Fund
anticipates that </font>
<FONT style="LINE-HEIGHT: normal; FONT-SIZE: 12pt" lang=EN-US color=black face="courier new">its next Annual Shareholders&#8217; Meeting will be held on or about Friday, March 22, 2013.&nbsp; Shareholder proposals to be presented at the next annual meeting must be received at the Fund&#8217;s offices, One Franklin Parkway, San Mateo, California 94403, Attention: Secretary, no later than October 20, 2012, in order to be considered for inclusion in the Fund&#8217;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 2013 Annual Shareholders&#8217; Meeting without including the proposal in the Fund&#8217;s proxy statement must notify the Fund at the Fund&#8217;s offices of such proposal by January 3, 2013.&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 2013 Annual Shareholders&#8217; Meeting may exercise discretionary voting power with respect to any such proposal.</FONT></p></div><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div>
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<P style="MARGIN: 0in 0in 0in 17pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="courier new"></FONT>&nbsp;</P>

<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&#8217;s management.</FONT></P>

<P style="MARGIN: 0in 0in 0pt 17.3pt"><FONT style="LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="courier new"></FONT>&nbsp;</P>

<P style="TEXT-INDENT: 4.5in; MARGIN: 0in 0in 0pt"><FONT style="LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="courier new">By order of the Board of Trustees,</FONT></P>

<P style="TEXT-INDENT: 4.5in; MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="courier new"></FONT>&nbsp;</P>

<P style="TEXT-INDENT: 4.5in; MARGIN: 0in 0in 0pt"><FONT face="Courier New">/s/KAREN L. SKIDMORE</FONT></P>

<P style="TEXT-INDENT: 4.5in; MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="courier new"></FONT>&nbsp;</P>

<P style="TEXT-INDENT: 4.5in; MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US color=black face="courier new">Karen L. Skidmore</FONT></P>

<P style="TEXT-INDENT: 4.5in; MARGIN: 0in 0in 6pt"><I><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="courier new">Vice </FONT></I><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="courier new">President &amp; </FONT><I><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="courier new">Secretary&nbsp;</FONT></I></P>

<P style="MARGIN: 0in 0in 0pt 17pt"><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; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="courier new">Dated: February 17, 2012</FONT></P>

<H5 style="PAGE-BREAK-AFTER: auto; MARGIN: 0in 0in 6pt 17pt"><FONT style="LINE-HEIGHT: 15pt; LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt; FONT-WEIGHT: normal" color=black face="Courier New">San Mateo, California</FONT></H5>

<P style="MARGIN: 0in 0in 0pt"><FONT style="LETTER-SPACING: 0.5pt; FONT-SIZE: 10pt" lang=EN-US color=black face=TimesNewRomanPS></FONT>&nbsp;</P></DIV>

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<DIV style="PAGE-BREAK-BEFORE: always">&nbsp;</DIV>
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<p style="margin-bottom:0in;margin-left:0in;margin-right:0pt;margin-top:0in;text-align:center;"><b><font face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0pt;margin-top:0in;text-align:center;"><b><font face="courier new" lang=EN-US style="font-size:12.0pt;">APPENDIX A</font></b></p>

<p align=left style="margin-bottom:0in;margin-left:0in;margin-right:0pt;margin-top:0in;text-align:left;"><b><font face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<p align=left style="margin-bottom:0in;margin-left:0in;margin-right:0pt;margin-top:0in;text-align:left;"><b><font face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<p align=left style="margin-bottom:0in;margin-left:0in;margin-right:0pt;margin-top:0in;text-align:left;"><b><font face="courier new" lang=EN-US style="font-size:12.0pt;">AUDIT COMMITTEE CHARTER</font></b></p>

<h1 align=left style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;text-align:left;"><b><font color=black face="Courier New" style="font-size:12.0pt;letter-spacing:.5pt;text-decoration:none;">&nbsp;</font></b></h1>

<h1 align=left style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;text-align:left;"><b><font color=black face="Courier New" style="font-size:12.0pt;letter-spacing:.5pt;">I.  </font></b><b><u><font color=black face="Courier New" style="font-size:12.0pt;letter-spacing:.5pt;">The
Committee</font></u></b><b><u><font color=windowtext face="Courier New" style="font-size:12.0pt;letter-spacing:.5pt;">.&nbsp;</font></u></b></h1>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:.5in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;">The Audit
Committee (&quot;Committee&quot;) is a committee of, and established by, the
Board of Directors/Trustees of the Fund (the &#8220;Board&#8221;).&#160; The Committee shall
consist of such number of members as set by the Board from time to time and its
members shall be selected by the Board.&#160; The Committee shall be comprised
entirely of &quot;independent&quot; members, as defined in Item&nbsp;3(a)(2) of
SEC Form N&#8209;CSR (&#8220;Disinterested Board members&#8221;).&#160; Members shall be
financially literate.&#160; At least one member of the Committee shall be designated
by the Board as an &quot;audit committee financial expert,&quot; as defined in
Item&nbsp;3(b) of SEC Form N&#8209;CSR, unless the Board determines that the
Fund does not have an audit committee financial expert on the Committee.</font></p>

<h1 align=left style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;text-align:left;"><b><font color=black face="Courier New" style="font-size:12.0pt;letter-spacing:.5pt;">II. </font></b><b><u><font color=black face="Courier New" style="font-size:12.0pt;letter-spacing:.5pt;">Purposes of
the Committee.</font></u></b></h1>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:.5in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;">The function of
the Audit Committee is to be directly responsible for overseeing the Fund's
accounting and auditing processes, which shall include the appointment,
compensation, retention and oversight of the work of the Fund's independent
auditors (&quot;auditors&quot;) engaged (including resolution of disagreements
between management and the auditors regarding financial reporting) for the
purpose of preparing or issuing an audit report or performing other audit,
review or attest services for the Fund.&#160; It is management's responsibility to
maintain appropriate systems for accounting and internal controls.&#160; It is the
auditors' responsibility to plan and carry out a proper audit and to report directly
to the Committee.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:0in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">Consistent with such allocation of functions,
the purposes of the Committee are:</font></p>

<h6 style="margin-bottom:12.0pt;margin-left:.25in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:.5in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">&nbsp;</font></h6>

<h6 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:-.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">a)</font><font color=black face="times new roman" style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">
</font><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">To oversee
the Fund's accounting and financial reporting policies and practices and its
internal controls, and to obtain, where it deems appropriate, reports on
internal controls of service providers to the Fund;</font></h6>

<h6 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:-.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">b)</font><font color=black face="times new roman" style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">
</font><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">To oversee
the quality and objectivity of the Fund's financial statements and the
independent audit thereof;</font></h6>

<h6 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:-.25in;">&nbsp;</h6></div><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div><a name="page_31"></a><a name="_bclPageBorder31"></a><DIV STYLE="WIDTH: 100%; PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<h6 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:-.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">c)</font><font color=black face="times new roman" style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;"> </font><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">To act as a liaison between the auditors and the
Board; and</font></h6>

<h6 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:-.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">d)</font><font color=black face="times new roman" style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">
</font><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">To consider
such other matters as it deems appropriate in carrying out its purpose and any
other matters that may be assigned to it by the Board.</font></h6>

<h1 align=left style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;text-align:left;"><b><font color=black face="Courier New" style="font-size:12.0pt;letter-spacing:.5pt;">III. </font></b><b><u><font color=black face="Courier New" style="font-size:12.0pt;letter-spacing:.5pt;">Powers and
Duties.</font></u></b></h1>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.5in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.5in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">The
Committee shall have the following powers and duties to carry out its purposes:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.5in;"><font face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">&nbsp;</font></p>

<h6 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:-.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">a)</font><font color=black face="times new roman" style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">
</font><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">To select
the auditors, subject to approval both by the Board and by a separate vote of
the Disinterested Board members, and, in connection therewith, to evaluate the
independence of the auditors in accordance with applicable law.</font></h6>

<h6 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:-.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">b)</font><font color=black face="times new roman" style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">
</font><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">To be
directly responsible for approving the services to be provided by, and the
compensation of, the auditors, including:</font></h6>

<p style="margin-bottom:6.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-align:justify;text-indent:-1.0in;"><font color=black face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;">i.</font><font color=black face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;">pre-approval of all audit and
audit related services;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:-1.0in;"><font color=black face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;">ii.</font><font color=black face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;">pre-approval of all non-audit
related services to be provided to the Fund by the auditors;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:-1.0in;"><font color=black face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;">iii.</font><font color=black face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;">pre-approval of all non-audit
related services to be provided by the auditors to the Fund's investment
adviser or to any entity that controls, is controlled by or is under common
control with the Fund's investment adviser and that provides ongoing services
to the Fund where the non-audit services relate directly to the operations or
financial reporting of the Fund; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin-bottom:.0001pt;margin-left:1.0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:-1.0in;"><font color=black face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;">iv.</font><font color=black face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;">establishment by the Committee,
if deemed necessary or appropriate, as an alternative to Committee pre-approval
of services to be provided by the auditors, as required by paragraphs (ii) and
(iii) above, of policies and procedures to permit such services to be pre&#8209;approved
by other means, such as through establishment of guidelines or by action of a
designated member or members of the Committee; provided the policies and procedures
are detailed as to the particular service and the</font><b><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;"> </font></b><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;">Committee is informed of each service and such
policies and procedures do not include delegation of audit committee
responsibilities, as contemplated under the Securities Exchange Act of 1934, to
management; subject, in the case of (ii) through (iv), to any waivers,
exceptions or </font><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;">exemptions that may be available under
applicable law or rules.</font></p></div><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div><a name="page_32"></a><a name="_bclPageBorder32"></a><DIV STYLE="WIDTH: 100%; PADDING-RIGHT: 0%; PADDING-LEFT: 0%">


<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<h6 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:-.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">c)</font><font color=black face="times new roman" style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">
</font><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">To meet
with the auditors, including private meetings, as necessary to (i)&nbsp;review
the arrangements for and scope of the annual audit and any special audits;
(ii)&nbsp;discuss any matters or concerns relating to the Fund's financial
statements, including any recorded and/or unrecorded adjustments to such
statements recommended by the auditors, or other results of audits;
(iii)&nbsp;consider the auditors' comments with respect to the Fund's financial
policies, procedures and internal controls and management's responses thereto,
and (iv)&nbsp;to review the form of opinion the auditors propose to render.</font></h6>

<h6 style="margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:-.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">d)</font><font color=black face="times new roman" style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">
</font><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">To receive
and consider reports from the auditors:</font></h6>

<p style="margin-bottom:6.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:-1.0in;"><font color=black face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;">i.</font><font color=black face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;">as required by generally
accepted accounting standards; and </font></p>

<p style="margin-bottom:6.0pt;margin-left:1.0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:-1.0in;"><font color=black face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;">ii.</font><font color=black face="times new roman" lang=EN-US style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=black face="Courier New" lang=EN-US style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;">annually and by update as
required by SEC Regulation S&#8209;X, regarding:&#160; (w)&nbsp;all critical
accounting policies and practices of the Fund to be used; (x)&nbsp;alternative
treatments within generally accepted accounting principles for policies and
practices related to material items that have been discussed with management of
the Fund, including ramifications of the use of such alternative disclosures
and treatments, and the treatment preferred by the auditors; (y)&nbsp;other
material written communications between the auditors and management of the
Fund, such as any management letter or schedule of unadjusted differences; and
(z)&nbsp;all non-audit services provided to any entity in an investment company
complex, as defined in SEC Regulation S&#8209;X, that were not pre&#8209;approved
by the Committee pursuant to SEC Regulation S&#8209;X.</font></p>

<h6 style="margin-bottom:6.0pt;margin-left:.25in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:0in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">e)</font><font color=black face="times new roman" style="font-size:7.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">
</font><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">To consider
the effect upon the Fund of any changes in accounting principles or practices
proposed by management or the auditors.</font></h6>

<h6 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">f) To investigate improprieties
or suspected improprieties in Fund operations.</font></h6>

<h6 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">g) In considering the
independence of the auditors, to request from the auditors a written statement,
and other reports as necessary, describing all relationships between the auditors
and the Fund, the Fund's investment adviser and service providers, and other
entities advised or serviced by, including any entities </font></h6></div><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div><a name="page_33"></a><a name="_bclPageBorder33"></a><DIV STYLE="WIDTH: 100%; PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<h6 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">controlling,
controlled by or under common control with, the investment adviser or any other
service providers to the Fund; to obtain and consider periodic reports from the
auditors regarding whether the provision of non&#8209;audit services is
compatible with maintaining the auditor's independence; and to request from the
auditors a certificate that they are independent auditors under the Federal
securities laws and are in compliance with all standards adopted by the
Independence Standards Board.</font></h6>

<h6 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">h) To review the experience and
qualifications of the senior members of the auditors' team and the quality
control procedures of the auditors.</font></h6>

<h6 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">i) To require that the auditors
regularly provide timely information to the Committee with respect to new rules
and pronouncements by applicable regulatory and accounting standards agencies,
along with an explanation of how such developments may affect the Fund's
financial statements and accounting principles and practices.</font></h6>

<h6 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">j) To review, at such times and
in the manner deemed appropriate by the Committee, the results of the annual
audit and financial statements, and the report of the auditors' audit of the
Fund's annual financial statements, including footnotes and any significant
audit findings.</font></h6>

<h6 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-indent:.25in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">k) To consider management's
evaluation of the Fund's disclosure controls and procedures in connection with
certifications of the Fund's Chief Executive Officer&nbsp;-&nbsp;Finance and
Administration and Chief Financial Officer concerning (i)&nbsp;all significant
deficiencies in the design or operation of internal controls which could
adversely affect the Fund's ability to record, process, summarize and report
financial data and have identified for the Fund's auditors any material
weaknesses in internal controls; and (ii)&nbsp;any fraud, whether or not
material, that involves management or other employees who have a significant
role in the Fund's internal controls, and for any other purposes the Committee
deems appropriate.</font></h6>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<h1 align=left style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;text-align:left;"><b><font color=black face="Courier New" style="font-size:12.0pt;letter-spacing:.5pt;">IV. </font></b><b><u><font color=black face="Courier New" style="font-size:12.0pt;letter-spacing:.5pt;">Other
Functions and Procedures of the Committee.</font></u></b></h1>

<h6 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-align:justify;text-indent:.5in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">&nbsp;</font></h6>

<h6 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-align:justify;text-indent:.5in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">a) The Committee
shall meet at least twice each year or more frequently, in open or executive
sessions.&#160; The Committee shall meet as frequently as circumstances require with
(i)&nbsp;the auditors as provided in III (c) above; and (ii)&nbsp;management's
internal audit department to review and discuss internal audit functions </font></h6></div><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div><a name="page_34"></a><a name="_bclPageBorder34"></a><DIV STYLE="WIDTH: 100%; PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<h6 style="margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:auto;text-align:justify;text-indent:.5in;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">and reports.&#160; The Committee may invite members of
management, the auditors, counsel, advisers and others to attend its meetings
as it deems appropriate.&#160; The Committee shall have separate sessions with the
auditors, management and others, as and when it deems appropriate.&#160; </font></h6>

<h6 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">&#160;&#160;&#160; b) The Committee shall
establish procedures for (i)&nbsp;the receipt, retention and treatment of
complaints received by the Fund or the Fund's adviser regarding accounting,
internal accounting controls, or accounting matters; and (ii)&nbsp;the
confidential, anonymous submission by employees of the Fund or the Fund's
adviser of concerns regarding questionable accounting or auditing matters.</font></h6>

<h6 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">&nbsp;</font></h6>

<h6 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">&#160;&#160;&#160; c) The Committee shall have
the authority to engage special counsel, experts and advisers as and when it
determines necessary to carry out its duties and the Fund must provide for
appropriate funding, as determined by the Committee, for payment of
(i)&nbsp;compensation to any auditors engaged for the purpose of preparing or
issuing an audit report or performing other audit, review or attest services
for the Fund; (ii)&nbsp;compensation to any advisers employed by the Committee;
and (iii)&nbsp;ordinary administrative expenses of the Committee that are
necessary or appropriate in carrying out its duties.</font></h6>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<h6 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">&#160;&#160;&#160; d) The Committee shall have
unrestricted access to the Fund's management and management of the Fund's
adviser, including, but not limited to, their chief executive officer(s), chief
financial officer(s), internal auditors and any other executives and financial
officers.</font></h6>

<h6 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">&nbsp;</font></h6>

<h6 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">&#160;&#160;&#160; e) The Committee shall
report its activities to the Board and make such recommendations as the Committee
may deem necessary or appropriate.</font></h6>

<h6 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">&nbsp;</font></h6>

<h6 style="margin:0in;margin-bottom:.0001pt;page-break-after:auto;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;text-decoration:none;">&#160;&#160;&#160; f) The Committee shall
review this Charter annually, or more frequently if it chooses, and recommend
any changes to the Board.</font></h6>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.5in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.5in;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">g)&#160; The Chair of the Committee shall meet
periodically on an informal basis with the Chairpersons of the Audit Committees
of other Funds within the Franklin/Templeton/Mutual Series complex to share
information and discuss items of mutual interest and shall report back to the
Committee on any issues of substance discussed at such periodic meetings.&#160; In
addition, the Committee shall meet jointly with Audit Committees of other Funds
within the Franklin/Templeton/Mutual Series complex as may be appropriate to attend
presentations and review proposals and </font>
<FONT style="LETTER-SPACING: 0.5pt; FONT-SIZE: 12pt" lang=EN-US color=black face="courier new">other matters of common concern to all such Audit Committees.</FONT></p></div><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div>
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<IMG align=left src="x12022119455000.gif" width=628 height=33><B><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="courier new">ADDITIONAL STATEMENT FOR CLOSED-END FUNDS ONLY</FONT></U></B></P>

<P style="TEXT-ALIGN: center; TEXT-INDENT: 0.5in; 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: 0in; MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="courier new">&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="courier new">The Committee shall comply with rules of the New York Stock Exchange, Inc. and the U.S. Securities and Exchange Commission applicable to closed-end funds, including (i) the preparation of the Audit Committee Disclosure Report required to be included in the Fund&#8217;s annual proxy statement; and (ii) the review and discussion of Fund financial statements and management policies in accordance with applicable Corporate Governance Rules of the New York Stock Exchange, Inc.</FONT><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="courier new"> </FONT></U></P>

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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 10pt" lang=EN-US face=arial>PROXY - FRANKLIN UNIVERSAL TRUST</FONT></B></P>

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<H1 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: center; MARGIN: 0in 0in 0pt"><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" face=arial>ANNUAL SHAREHOLDERS&#8217; MEETING &#8211; MARCH 23, 2012</FONT></B></H1>

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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT style="FONT-SIZE: 9pt" lang=EN-US face=arial>PROXY SOLICITED BY THE BOARD OF TRUSTEES OF THE FUND</FONT></B></P>

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<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 &#8220;Fund&#8221;) 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&#8217;s Annual Shareholders&#8217; Meeting (the &#8220;Meeting&#8221;) to be held at One Franklin Parkway, Building 920, San Mateo, CA 94403-1906 at 2:00 p.m., Pacific time, on March 23, 2012, 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>

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<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>

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   <P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT style="LETTER-SPACING: -0.1pt; FONT-SIZE: 8pt" face="arial narrow">(Mark the corresponding box on the reverse side)</FONT></P></TD></TR>

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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" 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"><B><FONT style="FONT-SIZE: 14pt" lang=EN-US face="arial narrow">FRANKLIN UNIVERSAL TRUST&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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="FONT-SIZE: 8pt" lang=EN-US face="arial narrow">Please mark your votes as&nbsp;&nbsp; [x]</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face="arial narrow">WILL BE VOTED &#8220;FOR&#8221; 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; </FONT><FONT style="FONT-SIZE: 8pt" lang=EN-US face="arial narrow">indicated in this example.</FONT></P>

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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 10pt" lang=EN-US face=arial>A.&nbsp;&nbsp; Election of Trustees</FONT></B></P>

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<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 THE </FONT></B><B><FONT style="FONT-SIZE: 9pt" lang=EN-US face="arial narrow">ELECTION OF ALL NOMINEES</FONT></B><B><FONT style="FONT-SIZE: 10pt" lang=EN-US face="arial narrow">.&nbsp;</FONT></B></P>

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<P style="MARGIN: 0in 0in 0pt"><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 10pt" lang=EN-US face=arial>1.&nbsp; Proposal: Election of Nine Nominees for Trustee </FONT><FONT style="LINE-HEIGHT: 10pt; 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;</FONT><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 10pt" lang=EN-US face=arial>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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: 10pt; FONT-SIZE: 9pt" lang=EN-US face=arial>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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"><B><FONT style="FONT-SIZE: 9pt" lang=EN-US face=arial>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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&nbsp;&nbsp;&nbsp; &nbsp;WITHHOLD&nbsp; &nbsp;&nbsp;*EXCEPTIONS</FONT></B></P>

<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face=arial>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;</FONT><B><FONT style="FONT-SIZE: 9pt" lang=EN-US face=arial>&nbsp;ALL&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;FOR ALL&nbsp;&nbsp; </FONT></B></P>

<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face=arial>01&nbsp; Harris J. Ashton&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; 06 &nbsp;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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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: 9pt" lang=SV face=arial>02&nbsp; Sam Ginn&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; 07 &nbsp;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;&nbsp;[&nbsp; ]&nbsp;&nbsp;&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: 9pt" lang=EN-US face=arial>03 &nbsp;Edith E. Holiday&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; 08 &nbsp;Larry D. Thompson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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: 9pt" lang=EN-US face=arial>04 &nbsp;Charles B. Johnson&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;09 &nbsp;John B. Wilson</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" lang=EN-US face=arial>05 &nbsp;Rupert H. Johnson, Jr. </FONT></P>

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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 8pt" lang=EN-US face=arial>(INSTRUCTIONS:&nbsp; To withhold authority to vote for any individual nominee, mark the </FONT></B></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt"><B><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 8pt" lang=EN-US face=arial>&#8220;Exceptions&#8221; box above and write that nominee's name in the space provided below.)</FONT></B><B><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 8pt" 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;</FONT></B><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 8pt" 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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; TEXT-TRANSFORM: uppercase; FONT-SIZE: 8pt" lang=EN-US face=arial>*</FONT><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 8pt" lang=EN-US face=arial>Exceptions ______________________________________________________________</FONT></P>

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<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; M</FONT><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 8pt" lang=EN-US face="arial narrow">ark here if you plan&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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to attend </FONT><FONT style="LINE-HEIGHT: 10pt; FONT-SIZE: 8pt" 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; </FONT></P>

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<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mark Here for&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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Address Change</FONT></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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or Comments</FONT></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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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</FONT></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;&nbsp;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US face=arial>Note:</FONT><B><FONT style="FONT-SIZE: 10pt" lang=EN-US face="arial narrow"> &nbsp;</FONT></B><FONT style="FONT-SIZE: 9pt" lang=EN-US face="arial narrow">&nbsp;Please </FONT><FONT style="FONT-SIZE: 8pt" lang=EN-US face="arial narrow">sign exactly as your name appears on the proxy.&nbsp; If signing for estates, trusts or corporations, your title or capacity should be stated.&nbsp; If shares are held jointly, any one holder must sign.</FONT></P>

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<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 9pt" lang=EN-US face="arial narrow">Signature(s): _____________________________________________________________________________&nbsp;&nbsp;&nbsp; Dated: ______________, 2012</FONT></B></P>

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