STA%20Update

1
Welcome to The Securities Transfer
Associations 95th Anniversary and 2006 Annual
Meeting
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Securities Transfer Association
Board Members
Director Mary Corcoran Aim Fund Services,
Inc. Director Julian G. Clark Mellon Investor
Services Director Debra H. Hacka National City
Bank Director Nancy L. Hoffman UMB Bank,
N.A. Director Salli A. Marinov First American
Stock Transfer
President Charles Rossi Computershare Secretary
Steven Nelson Continental Stock Transfer Trust
Co. Vice President and Treasurer Lennie M.
Kaufman Wells Fargo Shareowner Services Vice
President Assistant Secretary Thomas L.
Montrone Registrar and Transfer Company
Director Jonathan E. Miller StockTrans,
Inc. Director Gary Nazare The Bank of New
York Director Yehuda L. Neuberger American Stock
Transfer Trust Co. Executive Director
Cynthia Jones The Securities Transfer
Association, Inc.
Executive Committee Members
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Securities Transfer Association
Key Initiatives

• Proxy Reform
• SEC Rulemaking
• Dematerialization
• DTCC Fees

4
Securities Transfer Association
Proxy Reform

• NYSE Proxy Working Group
• Diverse Committee
• Various Constituencies Presented
• Six Major Recommendations
• Key STA Areas of Interest
• Issuer Access to Beneficial Holders
• Review Existing Proxy Distribution/Tabulation
  Process and Fees

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Securities Transfer Association
Proxy Reform (continued)

• Over-voting/Over-reporting
• STA/Sarbanes Oxley
• NYSE Fines
• ADP Over-voting Service
• SIA Best Practices
• Pre Distribution Reconcilement
• Post Distribution Reconcilement

6
Securities Transfer Association
SECs Proposed Access vs. Delivery Rule
Proposed Rule Still Under SEC Review

• 140 comment letters from issuers, shareholders,
  intermediaries and their agents
• Significant disagreement was expressed on
  several key matters
• The sufficiency of current Internet access among
  the U.S. population to adopt the rules,
  particularly among certain demographic groups
• The effect that the proposed notice and access
  model might have on the extent of shareholder
  participation in the corporate voting process
• The level of security and privacy on the
  Internet
• The extent of potential savings to companies and
  those conducting proxy contests that choose to
  rely on the proposed model and
• Whether the proposed model may make the proxy
  delivery system too complex, particularly as
  it relates to beneficial owners.

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Securities Transfer Association

• Suggestions for revisions include
• Provide a mechanism for shareholders to elect
  to receive paper copies of the proxy
  materials that remain in place until revoked by
  the shareholder
• Require the proxy card and proxy statement be
  made available through the same medium
  electronic or paper (i.e., do not permit mailing
  of a paper proxy card along with the Notice of
  Internet Availability of Electronic Proxy
  Materials unless also accompanied by the proxy
  statement)
• The Commission should review and simplify the
  entire proxy delivery system as a whole rather
  that addressing the issue of electronic delivery
  of proxy materials in isolation (to include
  direct delivery of proxy materials to
  beneficial owners, proxy over-voting and OBO/NOBO
  status) and
• The NYSE should review the appropriateness of
  its current fee schedule for payments to
  intermediaries for forwarding proxy materials and
  electronic suppressions.

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Securities Transfer Association
Proxy Reform (continued)

• SEC Options
• Adopt as is
• Adopt with Modifications
• Abandon Rule
• Combine with Other Major Proxy Initiatives

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Securities Transfer Association
Proxy Reform (continued)
Coalition Update

• Members
• Business Roundtable
• Society of Corporate Secretaries and Governance
  Professionals
• Securities Transfer Association
• National Investor Relations Institute
• National Association of Corporate Directors
• Supported NYSE Working Group Findings with
  Conditions
• Supported SECs Access vs. Delivery Proposed
  Rule
• Met with SEC Commissioners
• Concerns Surrounding Anonymity
• Develop Alternative Process Detail

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Securities Transfer Association
SEC Rulemaking

• Staff Changes
• Processing
• Shareholder Communication/Disclosure
• Purchase and Sales
• Insurance Requirements
• Segregation of Funds
• Contracts

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Securities Transfer Association
Dematerialization

• NYSE, AMEX, NASDAQ
• 01/01/07
• 01/01/08
• New FAST Agreements
• Limited Participant Agreements
• Book Entry Only

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Securities Transfer Association
Industry Overview

• Excess Capacity
• No Organic Growth
• Registered Shareholder Bases Attrition 6-9 Per
  Year
• Consolidation Continues
• Impact of New Rules
• Impact of Industry Forces
• DRS
• Brokers

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Securities Transfer Association
DTCC Fees

• STA, SEC, SIA, DTCC Activities
• Three Areas Identified
• Transfer Processing
• Dividend Process
• Corporate Action
• Current Status

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Securities Transfer Association
Processing Committee Members Chairperson - Deb
Culhane

• Keith Bradley Herb Lemmer
• Carmen Buonomo Maurice Lynch
• Gregory Caddell Anne Neuberger
• Mary Rose Cascaes Douglas Reed
• Armando DiBiase Janet Roskopf
• Cynthia Jones Kathryn Sevcik
• Don Gress John Ulla
• Craig Keller Karl Wagner
• Robert Kristanko

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Legal Committee MembersChairperson Mario
Passudetti
Securities Transfer Association
Stephen Cesso Andrea Manning Stephen J.
Dolmatch Steven Nelson Gordon Glaza Susan
Oliver William Harris William Stewart Blanche
Hurt Robert Sussman Herb Lemmer Catherine
Wexler Barbara Lubitz
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Proxy Committee MembersChairperson Mario
Passudetti
Securities Transfer Association
Gregory Caddell Robert Kristanko Norma
Cianfaglione Angela Lamb Piero
Falcone Joseph Maclelland Jeffrey
Jordan Alma Menendez Craig Keller Gail
Schweda
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Fraud Committee MembersChairperson Cynthia
Jones
Securities Transfer Association
Keith Bradley Bruce Mills Greg Caddell Anne
Neuberger Mary Rose Cascaes Angela Ponte Dawn
Coleman Janet Roskopf John Couturier Deborah
D. Seidel Vic DAmico Kathryn J. Sevcik Robert
A. Kristanko Marshall Toburen Herbert J.
Lemmer Alan Vesprini Deborah Liblit Raymond
Werkmeister III Shellie McCauley Bob Winterle
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Securities Transfer Association
Thank you for attending the conference.