<SEC-DOCUMENT>0000833040-13-000005.txt : 20130220
<SEC-HEADER>0000833040-13-000005.hdr.sgml : 20130220
<ACCEPTANCE-DATETIME>20130220125557
ACCESSION NUMBER:		0000833040-13-000005
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20130322
FILED AS OF DATE:		20130220
DATE AS OF CHANGE:		20130220
EFFECTIVENESS DATE:		20130220

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:		13625947

	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>futproxyfinal0213.htm
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<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">SCHEDULE 14A INFORMATION</font></p>

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

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

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">Proxy Statement Pursuant to
Section 14(a)</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">of the Securities Exchange Act of
1934</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">(Amendment No.)</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;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">Filed by
the Registrant&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [X]</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">Filed by
a party other than the Registrant&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#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;">Check
the appropriate box:</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;
Preliminary 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;">[X]&#160;&#160;
Definitive 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;">[ ]&#160;&#160;
Definitive Additional Materials</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;
Soliciting Material Pursuant to Section.240-14a-12</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;">&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 align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">FRANKLIN UNIVERSAL TRUST</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">(Name of Registrant as Specified
in its Charter)</font></p>

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

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">FRANKLIN UNIVERSAL TRUST</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">(Name of Person(s) Filing 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;">&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;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">Payment
of Filing Fee (Check the appropriate box):</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;">[X] No
fee required</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;">[ ] Fee
computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11</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;
(1)&#160;&#160; Title of each class of securities to which transaction applies:</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;
(2)&#160;&#160; Aggregate number of securities to which transaction applies:</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;">&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;
(3)&#160;&#160; Per unit price or other underlying value of transaction computed</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;
pursuant to Exchange Act Rule 0-11 (set forth the amount on which the</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;
filing fee is calculated and state how it was determined):</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;
(4)&#160;&#160; Proposed maximum aggregate value of transaction:</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>


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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: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;
(5)&#160;&#160; Total fee paid:</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;">[ ] Fee
paid previously with preliminary material.</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;">[ ]
Check box if any part of the fee is offset as provided by Exchange Act Rule</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">0-11(a)(2)
and identify the filing for which the offsetting fee was paid</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">previously.
Identify the previous filing by registration statement number, or</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">the Form
or Schedule and the date of its filing.</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; 1) Amount
Previously Paid:</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; 2)
Form, Schedule or Registration Statement No.:</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; 3)
Filing Party:</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; 4)
Date Filed:</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;">&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;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">[GRAPHIC
OMITTED]</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face="times new roman" lang=EN-US style="font-size:10.0pt;letter-spacing:.5pt;">&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;&#160;&#160;&#160;&#160;&#160;&#160; &nbsp;</font></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;">&nbsp;</font></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;">&nbsp;</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;">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;">IMPORTANT SHAREHOLDER INFORMATION</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">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 22, 2013, at 2:00 p.m., Pacific Time. </font><font face="courier new" lang=EN-US style="font-size:12.0pt;">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 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 to the position of Trustee (the &#8220;Proposal&#8221;).</font></p>

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

<p style="margin:0in;margin-bottom:.0001pt;"><b><font face="courier new" lang=EN-US style="font-size:12.0pt;">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;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;letter-spacing:.5pt;">We
welcome your comments. If you have any questions, please call Fund Information
at (800) DIAL BEN/342-5236.</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>

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

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

<p style="border:none;margin-bottom:15.0pt;margin-left:0in;margin-right:0in;margin-top:0in;padding:0in;text-align:center;"><b><font face="courier new" lang=EN-US style="font-size:12.0pt;">TELEPHONE AND INTERNET VOTING</font></b></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;padding:0in;"><b><font face="courier new" lang=EN-US style="font-size:12.0pt;">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-bottom:6.0pt;margin-left:17.0pt;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 align=left style="margin-bottom:15.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:left;"><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<p style="margin-bottom:15.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;font-weight:normal;">&nbsp;</font></p>

<p style="margin-bottom:15.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;font-weight:normal;">&nbsp;</font></p>

<p style="margin-bottom:15.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;font-weight:normal;">&nbsp;</font></p>


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<p align=left style="margin-bottom:15.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:left;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;font-weight:normal;">&#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></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;font-weight:normal;">This page
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</font></b><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">FRANKLIN UNIVERSAL TRUST</font></b></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;line-height:15.0pt;">NOTICE OF
2013 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 22, 2013, 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 18, 2013 as the record
date for the determination of shareholders entitled to vote at the Meeting.</font><font face=arial,sans-serif 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 align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><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; &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 20, 2013</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 22, 2013.&#160; </font></b></p>

<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;">The
Fund&#8217;s Notice of 2013 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;">This proxy statement is for the Annual Shareholders&#8217; Meeting (the
&#8220;Meeting&#8221;) of Franklin Universal Trust (the &#8220;Fund&#8221;), which will be held at the
Fund&#8217;s offices, One Franklin Parkway, San Mateo, California 94403, on Friday,
March 22, 2013, at 2:00 p.m., Pacific Time. The Fund&#8217;s Board of Trustees (the
&#8220;Board&#8221; or the &#8220;Trustees&#8221;) is </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 18, 2013, 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 20, 2013.</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>


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<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 for the Board.</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: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 </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.25pt;line-height:15.0pt;">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;"> 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-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 </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:15.0pt;">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)
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-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 17.1% and 16.9%, respectively, of its outstanding shares
as of December 31, 2012</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; </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 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 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-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 </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:-.25pt;line-height:15.0pt;">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>
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<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:avoid;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=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
  During at Least the Past 5 Years</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="courier new" 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="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</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;">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="courier new" 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="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
  of various companies; 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;">, 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:avoid;"><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; Chairman, First Responder Network Authority (FirstNet)
  (interoperable wireless broadband network) (August 2012); 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) (1999-2000);
  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: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:avoid;text-align:left;"><b><font color=black face="Courier New" style="font-size:9.0pt;letter-spacing:.5pt;">&nbsp;</font></b></h1>

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<h1 align=left style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:left;"><b><font color=black face="Courier New" style="font-size:9.0pt;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=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
  During at Least the Past 5 Years</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="courier new" 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="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</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="courier new" 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="courier new" 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="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
  or Trustee of various companies and trusts; 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;">, 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="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: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;">J.
  Michael Luttig (1954)</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</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;">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="courier new" 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="courier new" 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="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;">Executive
  Vice President, General Counsel and member of Executive Council, The Boeing
  Company; 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;">, Federal Appeals Court Judge, U.S. Court of
  Appeals for the Fourth Circuit (1991-2006).</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>

<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:10.0pt;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:10.0pt;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:10.0pt;letter-spacing:.5pt;">formerly</font></b><font color=black face=TimesNewRomanPS style="font-size:10.0pt;letter-spacing:.5pt;">, Chairman of the Board, President and Chief
  Executive Officer, UAL Corporation (airlines).</font></p>
  </td>
 </tr>
</table></div>

<p style="margin-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>

<h1 align=left style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:left;">&nbsp;</h1>
<a name="_bclFooter13"></a><DIV>





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





</DIV>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div><a name="page_14"></a><a name="_bclPageBorder14"></a><DIV STYLE="WIDTH: 100%; PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

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





</DIV>
<h1 align=left style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:left;"><b><font color=black face="Courier New" style="font-size:9.0pt;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=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
  During at Least the Past 5 Years</font></b></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:495.900024pt;">
 <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;layout-grid-mode:char;letter-spacing:.5pt;">Larry D. Thompson (1945)</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;">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: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 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="courier new" 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="courier new" 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="courier new" 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="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;">Executive Vice President - Government Affairs,
  General Counsel and Corporate Secretary, PepsiCo, Inc. (consumer products)
  (June 2012); and </font><b><font color=black face="courier new" style="font-size:9.0pt;layout-grid-mode:char;letter-spacing:.5pt;">formerly,&nbsp;</font></b><font color=black face="courier new" 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 (2011-2012); Senior Vice
  President - Government Affairs, General Counsel and Secretary, PepsiCo, Inc.
  (2004-2011); 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="courier new" 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="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=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="courier new" 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="courier new" 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="courier new" 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="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,
  Staples Europe (office supplies) (October 2012); 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="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;">, Chief Operating
  Officer and Executive Vice President, Gap, Inc. (retail) (1996-2000); Chief
  Financial Officer and Executive Vice President &#8211; Finance Strategy, Staples,
  Inc. (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>

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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>

<h1 align=left style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;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="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=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="courier new" 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="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>
 <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;">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="courier new" 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="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;">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: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;">**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=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>

<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 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, 2012.</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;"><b><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">Independent
Trustees:</font></b></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=center>

<table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:747.000000pt;">
 <tr>
  <td valign=bottom width=41% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in .1in;">
   <p style="margin-left:0in;margin-right:0in;page-break-after:avoid;"><b><font face="courier new" style="font-size:8.0pt;">Name of Nominee</font></b></p>
   </td>
 <td colspan=3 valign=bottom width=20% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in .1in;">
   <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="courier new" style="font-size:8.0pt;">Dollar&nbsp;Range&nbsp;of&nbsp;</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;">Equity</font></b></p>
   <p align=center style="margin-bottom:.75pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="courier new" style="font-size:8.0pt;">Securities in the Trust</font></b></p>
   </td>
 <td valign=bottom width=39% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in .1in;">
   <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</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;">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 align=center style="margin-bottom:.75pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="courier new" style="font-size:8.0pt;">Investments Fund Complex</font></b></p>
   </td>
 </tr>
<tr>
  <td valign=top width=41% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;page-break-after:avoid;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">Harris
  J. Ashton.................... </font></p>
  </td>
 <td colspan=3 nowrap valign=bottom width=20% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">$1-$10,000</font></p>
  </td>
 <td nowrap valign=bottom width=39% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=41% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">Sam Ginn............................ </font></p>
  </td>
 <td colspan=3 nowrap valign=bottom width=20% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">None</font></p>
  </td>
 <td nowrap valign=bottom width=39% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=41% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">Edith E. Holiday.................... </font></p>
  </td>
 <td colspan=3 nowrap valign=bottom width=20% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">None</font></p>
  </td>
 <td nowrap valign=bottom width=39% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=41% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">J. Michael Luttig................... </font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=19% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">None</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=40% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=41% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">Frank A. Olson...................... </font></p>
  </td>
 <td colspan=3 nowrap valign=bottom width=20% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">None</font></p>
  </td>
 <td nowrap valign=bottom width=39% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=41% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">Larry D. Thompson................... </font></p>
  </td>
 <td colspan=3 nowrap valign=bottom width=20% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">None</font></p>
  </td>
 <td nowrap valign=bottom width=39% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=41% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">John B. Wilson...................... </font></p>
  </td>
 <td colspan=3 nowrap valign=bottom width=20% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">None</font></p>
  </td>
 <td nowrap valign=bottom width=39% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td width=41% style="height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:10.0pt;letter-spacing:.5pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>
  </td>
 <td width=3% style="height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>
  </td>
 <td colspan=3 width=56% style="height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=41% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="courier new" style="font-size:12.0pt;letter-spacing:.5pt;">Interested
  Trustees:</font></b></p>
  </td>
 <td colspan=3 valign=bottom width=20% style="padding:0in 0in 0in .1in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:4.0pt;line-height:2.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=39% style="padding:0in 0in 0in .1in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:4.0pt;line-height:2.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr>
  <td valign=bottom width=41% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in .1in;">
   <p style="margin-left:0in;margin-right:0in;page-break-after:avoid;"><b><font face="courier new" style="font-size:8.0pt;">Name of Nominee</font></b></p>
   </td>
 <td colspan=3 valign=bottom width=20% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in .1in;">
   <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="courier new" style="font-size:8.0pt;">Dollar&nbsp;Range&nbsp;of</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;">&nbsp;Equity</font></b></p>
   <p align=center style="margin-bottom:.75pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="courier new" style="font-size:8.0pt;">Securities in the Trust</font></b></p>
   </td>
 <td valign=bottom width=39% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in .1in;">
   <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</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;">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 align=center style="margin-bottom:.75pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="courier new" style="font-size:8.0pt;">Investments Fund Complex</font></b></p>
   </td>
 </tr>
<tr>
  <td valign=top width=41% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">Charles B. Johnson.................. </font></p>
  </td>
 <td colspan=3 nowrap valign=bottom width=20% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">$1-$10,000</font></p>
  </td>
 <td nowrap valign=bottom width=39% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=41% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">Rupert H. Johnson, Jr............... </font></p>
  </td>
 <td colspan=3 nowrap valign=bottom width=20% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">$1-$10,000</font></p>
  </td>
 <td nowrap valign=bottom width=39% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">Over $100,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=41% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 <td colspan=3 nowrap valign=bottom width=20% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>
  </td>
 <td nowrap valign=bottom width=39% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="times new roman" style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr height=0>
  <td width=41%>&nbsp;</td>
 <td width=3%>&nbsp;</td>
 <td width=16%>&nbsp;</td>
 <td width=1%>&nbsp;</td>
 <td width=39%>&nbsp;</td>
 </tr>
</table>

</div>

<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:15.0pt;">&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:15.0pt;">&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:15.0pt;">How often do the Trustees meet
and what are they paid?</font></i></b></p>

<p style="margin-bottom:0in;margin-left:0in;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>

<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 board members constitute the sole independent directors/trustees of
27 investment companies in the Franklin Templeton Investments complex, for
which each Independent Director/Trustee currently is paid a $247,000 annual
retainer fee, </font><font face="Courier New" lang=EN-US style="font-size:12.0pt;">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 $50,000 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 Directors/Trustees are
also reimbursed for expenses incurred in connection with attending meetings.</font></p>
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<p style="margin:0in;margin-bottom:.0001pt;"><font color=navy face=arial,sans-serif 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, 2012, 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&#160;&#160; 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:0in;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 23, 2012.</font></p>

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

<p style="border:none;margin-bottom:3.0pt;margin-left:0in;margin-right:5.0in;margin-top:0in;padding:0in;"><font face="courier new" lang=EN-US style="font-size:8.0pt;line-height:6.0pt;">&nbsp;</font></p>

<div align=center>

<table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;margin-left:131.3pt;width:792.000000pt;">
 <tr>
  <td width=1% style="padding:0in 0in 0in 0in;"><p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p></td>
 <td colspan=3 valign=bottom width=24% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in .1in;">
   <p style="margin-left:0in;margin-right:0in;page-break-after:avoid;"><b><font face="courier new" style="font-size:8.0pt;">Name of Trustee</font></b></p>
   </td>
 <td colspan=2 valign=bottom width=18% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in .1in;">
   <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="courier new" style="font-size:8.0pt;">Aggregate<br>
   Compensation</font></b></p>
   <p align=center style="margin-bottom:.75pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="courier new" style="font-size:8.0pt;">from&nbsp;the&nbsp;Trust*</font></b></p>
   </td>
 <td colspan=2 valign=bottom width=30% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in .1in;">
   <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;">Total&nbsp;Compensation&nbsp;from<br>
   Franklin Templeton<br>
   Investments&nbsp;Fund&nbsp;Complex**</font></b></p>
   </td>
 <td colspan=2 valign=bottom width=27% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in .1in;">
   <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="courier new" style="font-size:8.0pt;">Number&nbsp;of&nbsp;Boards&nbsp;within</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;">Franklin Templeton<br>
   Investments&nbsp;Fund&nbsp;Complex</font></b></p>
   <p align=center style="margin-bottom:.75pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="courier new" style="font-size:8.0pt;">on&nbsp;which&nbsp;Trustee&nbsp;Serves***</font></b></p>
   </td>
 </tr>
<tr>
  <td width=1% style="padding:0in 0in 0in 0in;"><p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p></td>
 <td colspan=3 valign=top width=24% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;page-break-after:avoid;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">Harris
  J. Ashton</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=18% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;">$1,227</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=30% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;">$493,000</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=27% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;">41</font></p>
  </td>
 </tr>
<tr>
  <td width=1% style="padding:0in 0in 0in 0in;"><p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p></td>
 <td colspan=3 valign=top width=24% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">Sam Ginn</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=18% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;"> 1,227</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=30% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;"> 303,000</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=27% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;">27</font></p>
  </td>
 </tr>
<tr>
  <td width=1% style="padding:0in 0in 0in 0in;"><p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p></td>
 <td colspan=3 valign=top width=24% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">Edith E. Holiday</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=18% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;"> 1,227</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=30% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;"> 538,000</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=27% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;">41</font></p>
  </td>
 </tr>
<tr>
  <td colspan=2 valign=top width=23% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">J. Michael Luttig</font></p>
  </td>
 <td colspan=3 nowrap valign=bottom width=19% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;"> 3,232</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=30% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;"> 515,000</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=27% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;">41</font></p>
  </td>
 <td width=1% style="padding:0in 0in 0in 0in;"><p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p></td>
 </tr>
<tr>
  <td width=1% style="padding:0in 0in 0in 0in;"><p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p></td>
 <td colspan=3 valign=top width=24% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:12.0pt;margin-right:0in;text-indent:-12.0pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">Frank A. Olson</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=18% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;"> 3,232</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=30% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;"> 515,000</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=27% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;">41</font></p>
  </td>
 </tr>
<tr>
  <td colspan=3 valign=top width=24% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:.1pt;margin-right:0in;text-indent:-.1pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">Larry D. Thompson</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=18% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;"> 1,227</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=30% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;"> 660,000</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=27% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0pt;margin-right:0in;text-align:center;text-indent:18.65pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">44</font></p>
  </td>
 <td width=1% style="padding:0in 0in 0in 0in;"><p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p></td>
 </tr>
<tr>
  <td width=1% style="padding:0in 0in 0in 0in;"><p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=TimesNewRomanPS style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></p></td>
 <td colspan=3 valign=top width=24% style="padding:0in 0in 0in 0in;">
  <p style="margin-left:.05pt;margin-right:0in;text-indent:-.05pt;"><font face=TimesNewRomanPS style="font-size:10.0pt;">John B. Wilson</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=18% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;"> 3,232</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=30% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;"> 400,000</font></p>
  </td>
 <td colspan=2 nowrap valign=bottom width=27% style="padding:0in 0in 0in .1in;">
  <p align=center style="margin-left:0in;margin-right:0in;text-align:center;"><font face=TimesNewRomanPS style="font-size:10.0pt;">27</font></p>
  </td>
 </tr>
<tr height=0>
  <td width=1%>&nbsp;</td>
 <td width=22%>&nbsp;</td>
 <td width=1%>&nbsp;</td>
 <td width=1%>&nbsp;</td>
 <td width=17%>&nbsp;</td>
 <td width=1%>&nbsp;</td>
 <td width=29%>&nbsp;</td>
 <td width=1%>&nbsp;</td>
 <td width=26%>&nbsp;</td>
 <td width=1%>&nbsp;</td>
 </tr>
</table>

</div>

<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:5.0in;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;margin-left:.25in;text-indent:-.25in;"><font color=black face=TimesNewRomanPS lang=EN-US style="font-size:8.0pt;letter-spacing:.5pt;">&#160; * Compensation received for the fiscal year ended
August 31, 2012.</font></p>

<p style="margin-bottom:0in;margin-left:27.0pt;margin-right:0in;margin-top:0in;text-indent:-27.0pt;"><font face=TimesNewRomanPS lang=EN-US style="font-size:8.0pt;">&#160;** Compensation received for the calendar year ended
December 31, 2012. </font></p>

<p style="margin-bottom:0in;margin-left:.5in;margin-right:0in;margin-top:0in;text-indent:-.5in;"><font face="Courier New" lang=EN-US style="font-size:8.0pt;">*** 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="border:none;margin-bottom:3.0pt;margin-left:0in;margin-right:5.0in;margin-top:0in;padding:0in;"><font face="courier new" lang=EN-US style="font-size:9.0pt;line-height:6.0pt;">&nbsp;</font></p>

<p style="border:none;margin-bottom:3.0pt;margin-left:0in;margin-right:5.0in;margin-top:0in;padding:0in;"><font face="courier new" lang=EN-US style="font-size:9.0pt;line-height:6.0pt;">&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 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>

<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;"><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 face="courier new" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

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


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





</DIV>
<p style="margin-bottom:6.0pt;margin-left:0in;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:0in;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:0pt;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:avoid;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=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;">**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 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;">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 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;">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;">Alison
  E. Baur</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">(1964)</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;">Since April 2012</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;">Deputy
  General Counsel, Franklin Templeton Investments; and officer 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-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: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:avoid;text-align:center;"><b><font color=black face="Courier New" style="font-size:10.0pt;letter-spacing:.5pt;">&nbsp;</font></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>


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</DIV>
<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-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 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;">Breda
  M. Beckerle (1958)</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;">600 Fifth Avenue</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">New
  York, NY 10020</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 and 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
  May 2012</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;">Chief
  Compliance Officer, Fiduciary International, Inc., Franklin Advisers, Inc.,
  Franklin Advisory Services, LLC, Franklin Investment Advisory Services, LLC,
  Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; Vice
  President and Compliance Officer &#8211; Commingled Trusts, Fiduciary Trust
  International of the South; and officer 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=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;">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=23% 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 Administration</font></p>
  </td>
 <td valign=top width=56% 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.</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;">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=23% 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=56% 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=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;">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=23% 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=56% 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="courier new" lang=EN-US style="font-size:9.0pt;letter-spacing:.5pt;">&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>

<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: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: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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</DIV>
</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 face=Courier lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>





</DIV>
<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-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 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=23% 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=56% 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="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;">Selena
  L. Holmes (1965)</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;">100 Fountain Parkway</font></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="courier new" style="font-size:9.0pt;letter-spacing:.5pt;">St.
  Petersburg, FL 33716-1205</font></p>
  </td>
 <td valign=top width=23% 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 &#8211; AML Compliance</font></p>
  </td>
 <td valign=top width=56% 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
  May 2012</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 Monitoring; 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;">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=23% 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;">President
  and Chief Executive Officer &#8211; Investment Management </font></p>
  </td>
 <td valign=top width=56% 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;">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-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: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=23% 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=56% 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>

<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: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=Courier lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>





</DIV>
<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=23% 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=56% 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-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 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=23% 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=56% 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>

<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=23% 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=56% 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=23% 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=56% 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;layout-grid-mode:char;letter-spacing:.5pt;">Since 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 46
  of the investment companies in Franklin Templeton Investments.</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.5in;"><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: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 </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">recordkeeping,
for the Fund. FT Services is an indirect, &#173;wholly-owned subsidiary of &#173;Resources.</font></p>
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</DIV>


<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 Investment Servicing, c/o Computershare, P.O. Box 358035, Pittsburg, PA
15252-8035.</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>

<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, 2012, 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;">&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;">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 18, 2013, 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 $193,222,200.&#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 18, 2013, 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 18, 2013, no
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: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;">&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;">&nbsp;</font></i></b></p>


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</DIV>
<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 not expected to be
present at the Meeting, but will have the opportunity to make a statement if
they wish, and will be available should any matter arise requiring their
presence.</font></p>

<p style="margin:0in;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 $40,025
for the fiscal year ended August 31, 2012, and $35,855 for the fiscal year
ended August 31, 2011.</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, 2012 and August 31, 2011.&#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, 2012 and August 31, 2011. </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, 2012 and
August 31, 2011.</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 </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;line-height:normal;">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 $54,600 for the fiscal
year ended August 31, 2012, and $85,000 for the fiscal year ended August 31,
2011.&#160; </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;">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 $65 the fiscal year ended
August 31, 2012 and $63 for the fiscal year ended August 31, 2011.&#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
$152,385 for the fiscal year ended August 31, 2012 and $144,737 for the fiscal
year ended August 31, 2011</font><font color=blue 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;"><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 $207,050 for the
fiscal year ended August 31, 2012, and $229,800 for the fiscal year ended
August 31, 2011.</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 was 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 the proxy
statement for the 2012 Annual Shareholders&#8217; Meeting.</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>


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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;">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 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>

<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, 2012, 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;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">&#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; THE
AUDIT &#173;COMMITTEE</font></p>

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

<p style="margin:0in;margin-bottom:.0001pt;"><font face=TimesNewRomanPS lang=EN-US style="font-size:12.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#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 face=TimesNewRomanPS lang=SV style="font-size:12.0pt;line-height:normal;">&#160; </font><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;"><font face="courier new" lang=SV style="font-size:12.0pt;line-height:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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 </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">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>
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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 investment risk, the Board receives regular written reports
describing and analyzing the investment performance of the Fund. In addition,
the portfolio managers of the Fund meet regularly with the Board to discuss
portfolio performance, including investment risk. To the extent that the Fund
changes a particular investment strategy that could have a material impact on
the Fund's risk profile, the Board generally is consulted with respect to such
change. To the extent that the Fund invests in certain complex securities,
including derivatives, the Board receives periodic reports containing
information about exposure of the Fund to such instruments. In addition, the
Investment Manager's investment risk 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>

<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 </font><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">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>
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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;">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 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>

<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>

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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;">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 record). </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;">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>

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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;">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 </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:-.25pt;line-height:normal;">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 20, 2013. The Fund
anticipates that its next Annual Shareholders&#8217; Meeting will be held on or about
Friday, March 21, 2014.&#160; 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 23,
2013, 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 2014 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 6, 2014.&#160; 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 2014 Annual Shareholders&#8217; Meeting may exercise discretionary voting
power with respect to any such proposal.</font></p>

<p style="margin-bottom:0in;margin-left:17.0pt;margin-right:0in;margin-top:0in;"><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;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;">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;margin-bottom:.0001pt;margin-left:17.3pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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;">&#160;&#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></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; Karen L. Skidmore</font></p>

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

<p style="margin:0in;margin-bottom:.0001pt;margin-left:17.0pt;"><font color=black face="courier new" lang=EN-US style="font-size:12.0pt;letter-spacing:.5pt;line-height:15.0pt;">Dated: February 20, 2013</font></p>

<h5 style="margin-bottom:6.0pt;margin-left:17.0pt;margin-right:0in;margin-top:0in;page-break-after:avoid;"><font color=black face="Courier New" style="font-size:12.0pt;font-weight:normal;letter-spacing:.5pt;line-height:15.0pt;">San Mateo, California</font></h5>





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<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=windowtext face=courier lang=EN-US style="font-size:11.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

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<div style="border:none;border-bottom:solid windowtext 1.5pt;padding:0in 0in 1.0pt 0in;">

<p align=center style="border:none;margin:0in;margin-bottom:.0001pt;padding:0in;text-align:center;"><font color=windowtext face=courier lang=EN-US style="font-size:11.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

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<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face=courier lang=EN-US style="font-size:11.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<div style="border:none;border-bottom:solid windowtext 1.5pt;padding:0in 0in 1.0pt 0in;">

<p style="border:none;margin:0in;margin-bottom:.0001pt;padding:0in;"><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">Proxy</font></b><b><font color=windowtext face=courier lang=EN-US style="font-size:11.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;"> -</font></b><font color=windowtext face=courier lang=EN-US style="font-size:11.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;"> &nbsp;</font><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;</font></b><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:11.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">FRANKLIN UNIVERSAL
TRUST</font></b></p>

<p style="border:none;margin:0in;margin-bottom:.0001pt;padding:0in;"><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

</div>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:center;"><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">ANNUAL SHAREHOLDERS&#8217;
MEETING &#8211; MARCH 22, 2013</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">PROXY
SOLICITED BY THE BOARD OF TRUSTEES OF THE FUND</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-right:9.0pt;text-align:justify;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:9.0pt;text-autospace:ideograph-numeric ideograph-other;">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, Karen L.
Skidmore and Alison Baur, 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 22, 2013, 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>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">The Board of Trustees of the Fund solicits this proxy.&#160; 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.&#160; 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.&#160; Management is not
aware of any such matters.</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-right:9.0pt;text-align:justify;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:9.0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-right:9.35pt;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;line-height:5.0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-right:9.0pt;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">IMPORTANT: PLEASE SEND IN YOUR PROXY
TODAY.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-right:9.35pt;"><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:5.0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:-.1pt;text-autospace:ideograph-numeric ideograph-other;">You are urged to date and sign this proxy and return it
promptly whether or not you plan to attend the meeting in person.&#160; This will
save the expense of follow-up letters to shareholders who have not responded.</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:9.0pt;letter-spacing:-.1pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">THIS PROXY WILL BE VOTED AS DIRECTED, OR IF NO DIRECTION IS
INDICATED, WILL BE VOTED &#8220;FOR&#8221; THE ELECTION OF ALL NOMINEES.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">CONTINUED AND TO BE SIGNED ON REVERSE SIDE</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:7.0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>


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<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:7.0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:7.0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:7.0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:7.0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face=courier lang=EN-US style="font-size:11.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">FRANKLIN UNIVERSAL
TRUST&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#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></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face="arial narrow,sans-serif" style="border:solid windowtext 1.0pt;padding:0in;"><b><i><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">IMPORTANT ANNUAL
MEETING INFORMATION</font></i></b></font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">Using a </font><b><u><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">black ink</font></u></b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;"> pen, mark your votes with
an X as shown in&#160;&#160;&#160;&#160;&#160; </font><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">[x]&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">this example. Please do not write outside the designated
areas.</font></p>

<div style="border:none;border-bottom:solid windowtext 1.5pt;padding:0in 0in 1.0pt 0in;">

<p style="border:none;margin:0in;margin-bottom:.0001pt;padding:0in;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

</div>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<div style="border:none;border-bottom:solid windowtext 1.5pt;padding:0in 0in 1.0pt 0in;">

<p style="border:none;margin:0in;margin-bottom:.0001pt;padding:0in;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">Annual Meeting Proxy Card</font></b></p>

</div>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:12.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">A.&#160;&#160;
Election of Trustees - </font></b><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">THE BOARD OF TRUSTEES UNANIMOUSLY
RECOMMENDS A VOTE FOR THE </font></b><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">ELECTION
OF ALL NOMINEES</font></b><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">.&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.25in;text-indent:-.25in;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">1.</font><font color=windowtext face="times new roman" lang=EN-US style="font-size:7.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;&nbsp;&nbsp;&nbsp;
</font><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">Election of Trustees:&#160;&#160;&#160;&#160; 01 -&#160; Harris J.
Ashton&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color=windowtext face=arial,sans-serif lang=SV style="font-size:9.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">02 -&#160; Sam Ginn&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">03 -&#160; Edith E. Holiday</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.25in;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
04 - Charles B. Johnson&#160;&#160;&#160;&#160; 05 -&#160; Rupert H. Johnson, Jr.&#160;&#160;&#160; 06 -&#160; J. Michael
Luttig&#160; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:.25in;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#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 color=windowtext face=arial,sans-serif lang=SV style="font-size:9.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;07 - Frank A. Olson&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">08 -&#160; Larry D. Thompson&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 09 - John B. Wilson</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;&#160;&#160;&#160; &#9633; </font><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">Mark here
to vote&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&#9633; </font><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">Mark here to </font><u><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">WITHHOLD &nbsp;</font></u><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:14.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&#9633; </font><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">For All </font><u><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">EXCEPT </font></u><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&#8211;
To withhold authority to vote for any</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">FOR&nbsp;</font></u><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;"> all
nominees&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; vote from all nominees</font><font color=windowtext face=courier lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">  &nbsp;</font><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;nominee(s), write the name(s) of such
nominee(s) below.</font><font color=windowtext face=courier lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;&#160;&#160; &nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face=courier lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face=courier lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#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></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face=courier lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#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 color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;line-height:10.0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#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></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#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></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">B. Authorized Signatures &#8211; This section must be completed
for your vote to be counted. &#8211; Date and Sign Below</font></b><font color=windowtext face="times new roman" lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;&#160;&#160;&#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></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font color=windowtext face=arial,sans-serif lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">Note:</font><b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:10.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;"> &nbsp;</font></b><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:9.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&#160;Please
</font><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">sign exactly as your name appears on the
proxy.&#160; If signing for estates, trusts or corporations, your title or capacity
should be stated.&#160; If shares are held jointly,</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">any one holder must sign.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">Date (mm/dd/yyyy) &#8211; Please print date below.&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Signature
1 &#8211; Please keep signature within the box.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Signature 2 &#8211; Please
keep signature within the box.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;">

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<font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;">&nbsp;

</font><p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font color=windowtext face="arial narrow,sans-serif" lang=EN-US style="font-size:8.0pt;letter-spacing:0pt;text-autospace:ideograph-numeric ideograph-other;">&nbsp;</font></p>



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