UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-PX
ANNUAL REPORT OF PROXY VOTING RECORD OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-09205
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Advantage Advisers Xanthus Fund, LLC
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(Exact name of registrant as specified in charter)
200 Park Avenue, 24th Floor
New York, NY 10166
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(Address of principal executive offices) (Zip code)
Kenneth S. Gerstein
Schulte, Roth and Zabel LLP
919 3rd Avenue, 24th Floor
New York, NY 10022
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(Name and address of agent for service)
Registrant's telephone number, including area code: 212-667-4225
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Date of fiscal year end: December 31
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Date of reporting period: July 1, 2006 - June 30, 2007
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Form N-PX is to be used by a registered management investment company, other
than a small business investment company registered on Form N-5 (Sections 239.24
and 274.5 of this chapter), to file reports with the Commission, not later than
August 31 of each year, containing the registrant's proxy voting record for the
most recent twelve-month period ended June 30, pursuant to section 30 of the
Investment Company Act of 1940 and rule 30b1-4 thereunder (17 CFR 270.30b1-4).
The Commission may use the information provided on Form N-PX in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-PX, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-PX unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC
20549. The OMB has reviewed this collection of information under the clearance
requirements of 44 U.S.C. Section 3507.
PROXY VOTING RECORD
FOR PERIOD JULY 1, 2006 TO JUNE 30, 2007
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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05/02/07 - A BROADCOM CORP. *BRCM* 111320107 03/06/07 2,760
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1 Elect Directors For Split Mgmt
1.1 Elect Director George L. Farinsky --- For
BASED ON THE MAGNITUDE OF THE RESTATEMENT DUE TO
OPTIONS BACKDATING (OVER $2 BILLION IN RESTATEMENT)
AND THE LACK OF ADEQUATE OVERSIGHTS ON THE GRANT
PROCEDURES OF OPTIONS DURING THE PROBLEMATIC PERIOD,
ISS RECOMMENDS A VOTE TO WITHHOLD FROM THE
COMPENSATION COMMITTEE MEMBERS AND THE EQUITY AWARD
COMMITTEE MEMBERS WHO WERE PRESENT DURING THE
PROBLEMATIC PERIOD: HENRY SAMUELI, ALAN E. ROSS,
WERNER F. WOLFEN. FURTHER, HENRY SAMUELI, WHO WAS ON
THE EQUITY AWARD COMMITTEE DURING THE PROBLEMATIC
PERIOD CONTINUES TO BE ON THE THAT COMMITTEE. ISS
ALSO RECOMMENDS A VOTE TO WITHHOLD FROM THE PRESENT
COMPENSATION COMMITTEE FOR NOT ADOPTING AND/OR
DISCLOSING ROBUST INTERNAL CONTROLS SURROUNDING
OPTION GRANTS: JOHN E. MAJOR, WERNER F. WOLFEN AND
MAUREEN E. GRZELAKOWSKI. EXAMPLES OF SUCH ROBUST
INTERNAL CONTROLS COULD INCLUDE THE REMOVAL OF
WRITTEN CONSENTS ON OPTIONS APPROVAL, TRAINING
SESSIONS ON OPTION GRANT PROCEDURES AND REGULAR AUDIT
REVIEWS BY THE COMPENSATION COMMITTEE. INCLUDED IN
THIS ANALYSIS IS A SHAREHOLDER PROPOSAL THAT RELATES
TO OPTIONS GRANT PRACTICES WHICH ISS IS SUPPORTING AS
WELL.
1.2 Elect Director Maureen E. Grzelakowski --- Withhold
1.3 Elect Director Nancy H. Handel --- For
1.4 Elect Director John Major --- Withhold
1.5 Elect Director Scott A. McGregor --- For
1.6 Elect Director Alan E. Ross --- Withhold
1.7 Elect Director Henry Samueli, Ph.D. --- Withhold
1.8 Elect Director Robert E. Switz --- For
1.9 Elect Director Werner F. Wolfen --- Withhold
2 Amend Qualified Employee Stock Purchase For Against Mgmt
Plan
DESPITE THE REASONABLE OFFERING PERIOD, ISS DOES NOT
SUPPORT THIS PROPOSAL BECAUSE THE ADDITIONAL SHARES
WOULD CAUSE EXCESSIVE VOTING POWER DILUTION.
3 Approve Executive Incentive Bonus Plan For For Mgmt
THE PERFORMANCE MEASURES INCLUDED UNDER THE PLAN ARE
APPROPRIATE FOR THE COMPANY GIVEN ITS LINE OF
BUSINESS, LONG-TERM STRATEGIC OBJECTIVES, AND
INDUSTRY-SPECIFIC MEASURES FOR ASSESSING MARKET
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Mgmt Rec - Company Management Recommended Vote Page 1
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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COMPETITIVENESS. ADDITIONALLY, THE PLAN IS
ADMINISTERED BY A COMMITTEE OF INDEPENDENT OUTSIDERS
WHO MUST CERTIFY ATTAINMENT OF THESE OBJECTIVE,
MEASURABLE PERFORMANCE GOALS BEFORE CASH AWARDS ARE
PAID TO PARTICIPANTS. MOREOVER, PRESERVATION OF THE
FULL DEDUCTIBILITY OF ALL COMPENSATION PAID REDUCES
THE COMPANY'S CORPORATE TAX OBLIGATION.
4 Amend Omnibus Stock Plan For Against Mgmt
VI. VOTE RECOMMENDATION WE COMMEND THE COMPANY
FOR EXPRESSLY FORBIDDING THE REPRICING OF STOCK
OPTIONS UNDER THE PLAN. HOWEVER, THE ESTIMATED
SHAREHOLDER VALUE TRANSFER OF THE COMPANY'S PLANS OF
111 PERCENT EXCEEDS OUR ALLOWABLE CAP FOR THIS
COMPANY OF 12 PERCENT. ADDITIONALLY, THIS COMPANY HAS
REPRICED STOCK OPTIONS WITHOUT SHAREHOLDER APPROVAL
IN THE PAST.
5 Ratify Auditors For For Mgmt
6 Compensation Specific-Adopt Policy Against For ShrHoldr
Concerning Backdating Controversy
WHILE THE PROPONENT AND THE COMPANY HAVE A DIFFERENT
DEFINITION OF FAIR MARKET VALUE, THE ESSENCE OF THE
PROPOSAL RELATES TO THE COMPANY'S STOCK OPTION GRANT
PRACTICE. ISS NOTES THAT THE COMPANY DOES NOT HAVE
THE PRACTICE OF SPRINGLOADING OR "BULLET-DODGING",
HOWEVER, ISS BELIEVES THAT THIS PROPOSAL WARRANTS
SHAREHOLDER APPROVAL IN LIGHT OF THE COMPANY'S
PREVIOUS OPTIONS BACKDATING PRACTICE.
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01/25/07 - S BROCADE COMMUNICATIONS SYSTEMS 111621108 11/30/06 59,090
*BRCD*
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1 Issue Shares in Connection with an For For Mgmt
Acquisition
BASED ON OUR REVIEW OF THE TERMS OF THE TRANSACTION
PARTICULARLY THE STRATEGIC RATIONALE AND THE 42.8
PERCENT INCREASE IN STOCK PRICE SINCE THE
ANNOUNCEMENT OF THE ACQUISITION TRANSACTION, WE
BELIEVE THAT THE SHARE ISSUANCE WARRANTS SHAREHOLDER
SUPPORT. NONETHELESS, WE NOTE THAT THE COMPANY IS
UNDER SEC INVESTIGATION FOR OPTIONS BACKDATING
ISSUES.
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04/19/07 - A BROCADE COMMUNICATIONS SYSTEMS 111621108 02/21/07 173,940
*BRCD*
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1 Elect Directors For Split Mgmt
1.1 Elect Director Renato A. Dipentima ---
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Mgmt Rec - Company Management Recommended Vote Page 2
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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For
WE RECOMMEND A VOTE FOR RENATO A. DIPENTIMA, BUT
WITHHOLD VOTES FROM INDEPENDENT OUTSIDER SANJAY
VASWANI. WE RECOMMEND THAT SHAREHOLDERS WITHHOLD
VOTES FROM SANJAY VASWANI FOR NOT RESPONDING TO THE
DESIRES OF SHAREHOLDERS BY NOT DELETING THE
SUPERMAJORITY VOTE REQUIREMENTS IN ARTICLE VII AND
ARTICLE VIII OF ITS CERTIFICATE OF INCORPORATION AND
FOR NOT ADOPTING AND DISCLOSING INTERNAL CONTROLS AND
PROCEDURES TO PREVENT A REOCCURRENCE OF OPTIONS
BACKDATING.
1.2 Elect Director Sanjay Vaswani --- Withhold
2 Approve Reverse/Forward Stock Split For For Mgmt
GIVEN THAT THE PROPOSED TRANSACTION WOULD ALLOW THE
COMPANY TO REALIZE SIGNIFICANT COST SAVINGS WITHOUT
ADVERSELY AFFECTING SHAREHOLDERS, WE BELIEVE THIS
ITEM WARRANTS SHAREHOLDER SUPPORT.
3 Ratify Auditors For For Mgmt
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04/30/07 - A CENTURY SUNSHINE ECOLOGICAL G2091K120 04/25/07 6,152,403
TECHNOLOGY HOLDINGS LTD
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1 Accept Financial Statements and Statutory For For Mgmt
Reports
2 Approve Final Dividend of HK$0.01 Per Share For For Mgmt
3a1 Reelect Chi Wen Fu as an Executive Director For For Mgmt
3a2 Reelect Shum Sai Chit as an Executive For For Mgmt
Director
3a3 Reelect Zhou Xing Dun as an Executive For For Mgmt
Director
3a4 Reelect Shen Yi Min as an Independent For For Mgmt
Non-Executive Director
3b Authorize Board to Fix the Remuneration of For For Mgmt
Directors
4 Reappoint Auditors and Authorize Board to For For Mgmt
Fix Their Remuneration
THIS ITEM SEEKS APPROVAL FOR THE REAPPOINTMENT OF
PRICEWATERHOUSECOOPERS AS THE COMPANY'S AUDITORS FOR
THE YEAR.
5a Approve Issuance of Equity or For Against Mgmt
Equity-Linked Securities without
Preemptive Rights
THIS ITEM SEEKS TO REFRESH THE COMPANY'S MANDATE TO
ISSUE SHARES, UP TO 20 PERCENT OF CURRENT ISSUED
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Mgmt Rec - Company Management Recommended Vote Page 3
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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CAPITAL, WITHOUT PREEMPTIVE RIGHTS. THE GENERAL
MANDATE TO ISSUE SHARES IS SUPPORTED FOR COMPANIES
THAT LIMIT DISCOUNTS TO 5 PERCENT OF THE MARKET PRICE
OF SHARES AND WHO, AT THE SAME TIME, HAVE NO HISTORY
OF REFRESHMENTS AS THESE FACTORS ADDRESS CONCERNS ON
THE POSSIBLE ISSUANCE OF DISCOUNTED SHARES TO RELATED
PARTIES AS WELL AS FURTHER DILUTION TO EXISTING
SHAREHOLDERS DUE TO FREQUENT REFRESHMENTS. IN THIS
CASE, THE COMPANY DID NOT PROVIDE DISCOUNT
RESTRICTIONS ON THE ISSUE PRICE OF SHARES UNDER THIS
MANDATE. GIVEN THIS AND CONSIDERING THAT THE MANDATE
MAY BE REFRESHED SEVERAL TIMES WITHIN A PERIOD OF ONE
YEAR, WE RECOMMEND SHAREHOLDERS OPPOSE THIS
RESOLUTION.
5b Authorize Repurchase of Up to 10 Percent For For Mgmt
of Issued Share Capital
THIS AUTHORITY IS LIMITED TO 10 PERCENT OF THE
OUTSTANDING SHARE CAPITAL OF THE COMPANY ON THE DATE
OF RESOLUTION IS PASSED AND OPERATES UNDER STRICT
REGULATORY GUIDELINES OF SEHK. WE BELIEVE THAT WHEN
TIMED CORRRECTLY, CORPORATE STOCK REPURCHASES ARE A
LEGITIMATE USE OF CORPORATE FUNDS AND CAN ADD TO
LONG-TERM SHAREHOLDER RETURNS.
5c Authorize Reissuance of Repurchased Shares For Against Mgmt
THIS MANDATE EFFECTIVELY INCREASES THE NUMBER OF
SHARES THAT MAY BE ISSUED WITHOUT PREEMPTIVE RIGHTS
TO 30 PERCENT OF ISSUED CAPITAL FROM THE ORIGINAL
LIMIT OF 20 PERCENT UNDER THE GENERAL MANDATE TO
ISSUE SHARES SOUGHT BY MOST HONG KONG COMPANIES.
GIVEN THAT THE GENERAL MANDATE TO ISSUE SHARES IS
SUBJECT TO ABUSE BY COMPANIES THAT ISSUE SHARES AT
DISCOUNTS TO THE MARKET PRICE, SUCH EXTENSION OF THE
GENERAL SHARE ISSUANCE MANDATE MAY INCREASE THE SCOPE
OF NON-PREEMPTIVE PLACEMENTS, PUTTING MINORITY
SHAREHOLDERS AT A DISADVANTAGE AS REPURCHASED SHARES
MAY ALSO BE REISSUED AT A DISCOUNT TO THE MARKET
PRICE. IN VIEW OF THIS, SHAREHOLDERS ARE RECOMMENDED
TO OPPOSE THIS ITEM UNLESS A MINIMAL DISCOUNT OF 5
PERCENT OR LESS IS SPECIFIED FOR SHARE ISSUANCES
UNDER A GENERAL MANDATE. IN THIS CASE, THE COMPANY
HAS NOT SPECIFIED DISCOUNT LIMITS FOR THE ISSUANCE OF
SHARES WITHOUT PREEMPTIVE RIGHTS. AS SUCH, WE
RECOMMEND SHAREHOLDERS VOTE AGAINST THIS RESOLUTION.
5d Approve Issuance of Shares Pursuant to For Against Mgmt
Share Option Scheme
THE SHARE OPTION SCHEME UNDER WHOSE TERMS THIS
REQUEST IS MADE ALLOWS FOR AN EXCESSIVE LEVEL OF
DILUTION AT 10 PERCENT WITHOUT PROVIDING PERFORMANCE
CONDITIONS AND VESTING PERIODS AND PROVIDES FOR A
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Mgmt Rec - Company Management Recommended Vote Page 4
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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TOTAL DILUTION WITH ALL EXISTING OR LATER PROPOSED
PLANS AT AN EVEN HIGHER RATE OF 30 PERCENT. GIVEN THE
HIGH LEVEL OF DILUTION OF THE PROPOSED PLAN, WE
RECOMMEND A VOTE OPPOSING THIS REQUEST.
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04/26/07 - A CHINA EVERBRIGHT INTERNATIONAL Y14226107 04/20/07 2,047,195
LTD
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1 Accept Financial Statements and Statutory For For Mgmt
Reports
2a Approve Final Dividend For For Mgmt
THE BOARD RECOMMENDS THE PAYMENT OF A FINAL DIVIDEND
OF HK$0.006 ($0.0008) PER SHARE. ALONG WITH THE
INTERIM DIVIDEND, THE COMPANY HAS A FULL-YEAR
DIVIDEND OF HK$0.012 ($0.002) UNCHANGED FROM THE
PREVIOUS YEAR. THIS GIVES THE COMPANY A PAYOUT RATIO
OF 8.5 PERCENT, DOWN FROM 28.6 PERCENT IN THE
PREVIOUS PERIOD. TAKING INTO ACCOUNT THE SPECIAL
DIVIDEND PROPOSED IN ITEM 2B, THE COMPANY'S PAYOUT
RATIO WOULD INCREASE UP TO 11.3 PERCENT. WE USE A
MINIMUM 30 PERCENT AND A MAXIMUM 100 PERCENT RATIO AS
TRIGGERS FOR FURTHER ANALYSIS. WHEN THE PAYOUT RATIO
FALLS BELOW OUR MINIMUM STANDARD OF 30 PERCENT, WE
RECOMMEND A CLOSER ANALYSIS OF THE ALLOCATION
PROPOSAL. A PATTERN OF LOW PAYOUTS WITHOUT ADEQUATE
RATIONALE FOR THE RETENTION OF CAPITAL WOULD MERIT A
VOTE AGAINST THE DIVIDEND PROPOSAL. IN THIS CASE, WE
FOUND THAT THE COMPANY IS RECOVERING FROM LOSSES
INCURRED FROM 1998 TO 2000. THIS BEING THE CASE, A
VOTE IN FAVOR OF THIS ITEM IS RECOMMENDED.
2b Approve Special Dividend For For Mgmt
THIS ITEM SEEKS TO DECLARE A SPECIAL DIVIDEND OF
HK$0.004 ($0.001) PER SHARE.
3a1 Reelect Wang Mingquan as Director For For Mgmt
3a2 Reelect Chen Xiaoping as Director For For Mgmt
3a3 Reelect Zhang Weiyun as Director For For Mgmt
3a4 Reelect David Akers-Jones as Director For For Mgmt
3b Authorize Board to Fix Remuneration of For For Mgmt
Directors
4 Reappoint Auditors and Authorize Board to For For Mgmt
Fix Their Remuneration
THE BOARD IS PROPOSING TO REAPPOINT KPMG AS THE
COMPANY'S AUDITORS FOR THE YEAR.
5a Approve Issuance of Equity or For Against Mgmt
Equity-Linked Securities without
Preemptive Rights
THIS ITEM SEEKS TO REFRESH THE COMPANY'S MANDATE TO
ISSUE SHARES, REPRESENTING UP TO 20 PERCENT OF
CURRENT ISSUED CAPITAL, WITHOUT PREEMPTIVE RIGHTS.
THE
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Mgmt Rec - Company Management Recommended Vote Page 5
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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GENERAL MANDATE TO ISSUE SHARES IS SUPPORTED FOR
COMPANIES THAT LIMIT DISCOUNTS TO 5 PERCENT OF THE
MARKET PRICE OF SHARES AND WHO, AT THE SAME TIME,
HAVE NO HISTORY OF REFRESHMENTS AS THESE FACTORS
ADDRESS CONCERNS ON THE POSSIBLE ISSUANCE OF
DISCOUNTED SHARES TO RELATED PARTIES AS WELL AS
FURTHER DILUTION TO EXISTING SHAREHOLDERS DUE TO
FREQUENT REFRESHMENTS. IN THIS CASE, THE COMPANY DID
NOT PROVIDE DISCOUNT RESTRICTIONS ON THE ISSUE PRICE
OF SHARES UNDER THIS MANDATE. GIVEN THIS AND
CONSIDERING THAT THE MANDATE MAY BE REFRESHED SEVERAL
TIMES WITHIN A PERIOD OF ONE YEAR, WE RECOMMEND
SHAREHOLDERS OPPOSE THIS RESOLUTION.
5b Authorize Repurchase of Up to 10 For For Mgmt
Percent of Issued Share Capital
THIS AUTHORITY IS LIMITED TO 10 PERCENT OF THE
OUTSTANDING SHARE CAPITAL OF THE COMPANY ON THE DATE
OF THE RESOLUTION IS PASSED AND OPERATES UNDER STRICT
REGULATORY GUIDELINES OF THE SEHK. WE BELIEVE THAT
WHEN TIMED CORRECTLY, CORPORATE STOCK REPURCHASES ARE
A LEGITIMATE USE OF CORPORATE FUNDS AND CAN ADD TO
LONG-TERM SHAREHOLDER RETURNS.
5c Authorize Reissuance of Repurchased Shares For Against Mgmt
THIS MANDATE EFFECTIVELY INCREASES THE NUMBER OF
SHARES THAT MAY BE ISSUED WITHOUT PREEMPTIVE RIGHTS
TO 30 PERCENT OF ISSUED CAPITAL FROM THE ORIGINAL
LIMIT OF 20 PERCENT UNDER THE GENERAL MANDATE TO
ISSUE SHARES SOUGHT BY MOST HONG KONG COMPANIES.
GIVEN THAT THE GENERAL MANDATE TO ISSUE SHARES IS
SUBJECT TO ABUSE BY COMPANIES THAT ISSUE SHARES AT
DISCOUNTS TO THE MARKET PRICE, SUCH EXTENSION OF THE
GENERAL SHARE ISSUANCE MANDATE MAY INCREASE THE SCOPE
OF NON-PREEMPTIVE PLACEMENTS, PUTTING MINORITY
SHAREHOLDERS AT A DISADVANTAGE AS REPURCHASED SHARES
MAY ALSO BE REISSUED AT A DISCOUNT TO THE MARKET
PRICE. IN VIEW OF THIS, SHAREHOLDERS ARE RECOMMENDED
TO OPPOSE THIS ITEM UNLESS A MINIMAL DISCOUNT OF 5
PERCENT OR LESS IS SPECIFIED FOR SHARE ISSUANCES
UNDER A GENERAL MANDATE. IN THIS CASE, THE COMPANY
HAS NOT SPECIFIED DISCOUNT LIMITS FOR THE ISSUANCE OF
SHARES WITHOUT PREEMPTIVE RIGHTS. AS SUCH, WE
RECOMMEND SHAREHOLDERS VOTE AGAINST THIS RESOLUTION.
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01/29/07 - S CHINA FOODS HOLD. LTD. G2251V106 None 1,193,128
(FORMERLY COFCO INTERNATIONAL
LTD.
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1 Approve China Agri Hldgs. Share Option For Against Mgmt
Scheme
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Mgmt Rec - Company Management Recommended Vote Page 6
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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GIVEN THE EXCESSIVE DILUTION (10 PERCENT OF
OUTSTANDING CAPITAL FROM TIME TO TIME) AND POOR
ADMINISTRATION OF THE PLAN, WE RECOMMEND THAT
SHAREHOLDERS VOTE AGAINST THIS PROPOSAL.
2 Approve Amendment to Conditions of For For Mgmt
Connected Transactions Passed at the
Special General Meeting on Nov. 21, 2006
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02/05/07 - S CHINA FOODS HOLD. LTD. G2251V106 None 1,193,128
(FORMERLY COFCO INTERNATIONAL
LTD.
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SPECIAL BUSINESS
1 Approve Amendment to the Condition for the For For Mgmt
Change in Company Name Approved on Nov.
21, 2006
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02/28/07 - S CHINA NATIONAL BUILDING MATERIAL Y15045100 02/28/07 2,036,914
CO LTD
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SPECIAL BUSINESS
1 Authorize Issuance of Domestic Corporate For For Mgmt
Bonds
THIS ITEM SEEKS SHAREHOLDER APPROVAL FOR THE PROPOSED
ISSUANCE BY THE COMPANY OF DOMESTIC CORPORATE BONDS
WITH AN AGGREGATE PRINCIPAL AMOUNT OF RMB 1.0 BILLION
($123.9 MILLION) TO BE ISSUED ONLY ONCE. THE BONDS
WOULD HAVE A TERM OF NOT MORE THAN 15 YEARS AND IS
INTENDED TO BE ISSUED TO PEOPLE'S REPUBLIC OF
CHINA (PRC) CITIZENS HOLDING VALID AND LEGAL PROOF OF
THEIR IDENTITY, PRC LEGAL PERSONS AND UNINCORPORATED
BODIES, EXCEPT FOR THOSE WHO ARE PROHIBITED BY PRC
LAWS OR REGULATIONS TO SUBSCRIBE. THE COUPON RATE FOR
THE BONDS: (a) SHOULD NOT EXCEED 90 PERCENT OF THE
BENCHMARK INTEREST RATE OF DOMESTIC LOANS PUBLISHED
BY THE PEOPLE'S BANK OF CHINA FOR THE SAME PERIOD AS
THE ISSUANCE OF BONDS (BOND ISSUE); (b) WOULD BE
DETERMINED BASED ON THE BOND MARKET CONDITIONS IN THE
PRC AT THE TIME OF THE BOND ISSUE; AND (c) WOULD BE
SUBJECT TO THE FINAL APPROVAL OF RELEVANT REGULATORY
AUTHORITIES IN THE PRC. THE BONDS WOULD HAVE A FIXED
RATE WITH INTEREST TO BE PAYABLE ON AN ANNUAL BASIS
AND THE PRINCIPAL AMOUNT WOULD BE REPAID WITH THE
LAST INSTALLMENT OF INTEREST. PART OF THE PROCEEDS
FROM THE BOND ISSUE WOULD BE USED TO FUND THE
CONSTRUCTION OF PRODUCTION FACILITIES FOR CLINKER AND
CEMENT, GYPSUM BOARD PRODUCTION AND ANCILLARY
FACILITIES, ROTOR BLADE PRODUCTION AND GLASS FIBER
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Mgmt Rec - Company Management Recommended Vote Page 7
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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PRODUCTS. THE DIRECTORS BELIEVE THAT THE COST OF
ISSUING THE BONDS IS LOWER THAN THE COST OF SHORT
TERM BANK LOANS. ALSO, THE DIRECTORS CONSIDER THAT
THE BOND ISSUE, WITH A MATURITY OF 15 YEARS, WOULD
PROVIDE A MORE STABLE AND LONG TERM SOURCE OF FUNDING
TO THE COMPANY. MOREOVER, THE BOND ISSUE ALSO
CORRESPONDS WITH THE COMPANY'S INVESTMENT
PROJECTS WHICH HAVE A LONG CONSTRUCTION PERIOD AND
RETURN CYCLE. THE DIRECTORS ALSO DEEM IT BENEFICIAL
TO ISSUE BONDS FOR THE LONG TERM DEVELOPMENT OF
THE COMPANY AND IMPROVEMENT OF SHAREHOLDERS'
RETURN ON THEIR INVESTMENT. GIVEN THAT THE PROPOSED
ISSUANCE OF BONDS MAY ALLOW THE COMPANY TO IMPROVE
ITS ASSETS AND LIABILITIES STRUCTURE AND REDUCE
ITS EXISTING COSTS OF FINANCING, WE RECOMMEND
SHAREHOLDERS VOTE IN FAVOR OF THIS RESOLUTION.
2 Authorize Board to Deal with All Matters For For Mgmt
in Connection with the Issuance of
Domestic Corporate Bonds
THIS ITEM SEEKS TO GRANT BOARD AUTHORITY TO DEAL WITH
ALL MATTERS IN CONNECTION WITH THE ISSUANCE OF
DOMESTIC CORPORATE BONDS. GIVEN ISS' SUPPORT
FOR THE PROPOSED ISSUANCE OF DOMESTIC CORPORATE
BONDS, A VOTE IN FAVOR OF THIS RESOLUTION IS
RECOMMENDED.
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06/15/07 - A CHINA NATIONAL BUILDING MATERIAL Y15045100 06/15/07 4,069,585
CO LTD
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1 Accept Report of the Board of Directors For For Mgmt
2 Accept Report of the Supervisory Committee For For Mgmt
3 Accept Financial Statements and Statutory For For Mgmt
Reports
4 Approve Profit Distribution Plan and Final For For Mgmt
Dividend Distribution Plan
THIS ITEM SEEKS APPROVAL FOR THE COMPANY'S PROFIT AND
FINAL DIVIDEND DISTRIBUTION PLANS FOR THE YEAR ENDED
DEC. 31, 2006. THE BOARD PROPOSES THE APPROPRIATION
OF 10 PERCENT OF THE PROFIT AFTER TAX TO THE
STATUTORY SURPLUS RESERVE. SUCH AMOUNT IS REQUIRED TO
BE APPROPRIATED TO THE STATUTORY SURPLUS RESERVE,
UNDER RELEVANT REGULATIONS IN THE PEOPLE'S
REPUBLIC OF CHINA (PRC) AND THE ARTICLES OF
ASSOCIATION OF THE COMPANY. THE RESERVE FUND COULD
REACH AS MUCH AS 50 PERCENT OF THE COMPANY'S SHARE
CAPITAL. IN ADDITION, THE BOARD IS PROPOSING A FINAL
DIVIDEND OF RMB 0.0324 ($0.004) PER SHARE, DOWN FROM
RMB 0.0388 ($0.005) THE YEAR BEFORE. THIS GIVES THE
COMPANY A PAYOUT RATIO OF 20.3
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Mgmt Rec - Company Management Recommended Vote Page 8
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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PERCENT, UP FROM 15.5 PERCENT OF THE PREVIOUS YEAR.
WE USE A MINIMUM OF 30 PERCENT AND A MAXIMUM OF 100
PERCENT RATIO AS TRIGGERS FOR FURTHER ANALYSIS. WHEN
THE PAYOUT RATIO FALLS BELOW OUR MINIMUM STANDARD OF
30 PERCENT, WE RECOMMEND A CLOSER ANALYSIS OF THE
ALLOCATION PROPOSAL. AS THE COMPANY HAD ITS INITIAL
PUBLIC OFFERING ON MARCH 23, 2006, WE BELIEVE THAT
THE BOARD IS USING THE COMPANY'S CASH TO REINVEST IN
THE COMPANY FOR GROWTH AND EXPANSION. WE TYPICALLY
GIVE NEWLY LISTED COMPANIES A PERIOD OF FIVE YEARS TO
BRING UP THEIR PAYOUT RATIOS TO MEET OUR GUIDELINES.
GIVEN THAT THE COMPANY IS IN ITS SECOND YEAR AS A
LISTED COMPANY, WE RECOMMEND THAT SHAREHOLDERS
SUPPORT THIS PROPOSAL.
5 Approve Interim Dividend for 2007 For For Mgmt
6 Reappoint ShineWing Certified Public For For Mgmt
Accountants and Deloitte Touche Tohmatsu,
Certified Public Accountants as PRC and
International Auditors and Authorize Board
to Fix Their Remuneration
7 Approve Revised 2007 Cap For For Mgmt
THIS ITEM SEEKS TO REVISE THE AGGREGATE ANNUAL CAP
FOR 2007, IN RELATION TO THE CONNECTED TRANSACTIONS
BETWEEN THE COMPANY AND CHINA NATIONAL BUILDING
MATERIAL GROUP CORP. (PARENT), A CONTROLLING
SHAREHOLDER OF THE COMPANY, CONCERNING: (1) THE
SUPPLY BY PARENT OR PROCUREMENT OF ITS SUBSIDIARIES
TO SUPPLY LIMESTONE AND CLAY TO THE COMPANY FOR THE
PRODUCTION OF CLINKER AND OTHER CEMENT PRODUCTS
(MASTER AGREEMENT), AND (2) INDIVIDUAL AGREEMENTS
BETWEEN THE COMPANY AND ITS SUBSIDIARIES (GROUP) AND
PARENT AND ITS SUBSIDIARIES (PARENT GROUP) CONTAINING
PROVISIONS THAT REFLECT THE BINDING PRINCIPLES,
GUIDELINES, TERMS AND CONDITIONS IN AND FURTHER
ELABORATIONS ON THE TRANSACTIONS PURSUANT TO THE
MASTER AGREEMENT (INDIVIDUAL AGREEMENTS). IT WAS
NOTED THAT TRANSACTIONS BETWEEN ZAOZHUANG CHINA
UNITED CEMENT CO., LTD. (ZAOZHUANG CHINA UNITED), A
SUBSIDIARY OF THE COMPANY, AND SHANDONG ANXIA CEMENT
GROUP CO., LTD. (ANXIA CEMENT), A COMPANY WHICH WOULD
BECOME A SUBSIDIARY OF THE PARENT UPON COMPLETION OF
THE ACQUISITION BY A SUBSIDIARY OF THE PARENT OF
ANXIA CEMENT, RELATING TO THE SUPPLY BY ANXIA CEMENT
OF LIMESTONE TO ZAOZHUANG CHINA UNITED FOR THE
PRODUCTION OF CEMENT PRODUCTS (LIMESTONE SUPPLY
AGREEMENT), WOULD BE ALSO BE INCLUDED AND CONSIDERED
FOR THE REVISION OF THE ANNUAL CAP FOR 2007. TAKING
INTO ACCOUNT THE INCLUSION OF
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 9
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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LIMESTONE SUPPLY AGREEMENT UPON COMPLETION OF THE
ACQUISITION, THE DIRECTORS SEEK TO REVISE THE 2007
ANNUAL CAP AS THE EXISTING ANNUAL CAP WOULD NOT BE
SUFFICIENT FOR THE REQUIREMENTS OF THE COMPANY AND
ITS SUBSIDIARIES (GROUP). IT IS PROPOSED THAT THE CAP
FOR 2007 BE REVISED FROM RMB 110.0 MILLION ($14.1
MILLION) TO RMB 131.3 MILLION ($16.8 MILLION). THIS
REVISED AMOUNT WAS DETERMINED ON BASED ON HISTORICAL
TRANSACTION VALUES FOR TRANSACTIONS BETWEEN THE GROUP
AND THE PARENT GROUP FOR THE TWO YEARS ENDED DEC. 31,
2006 AND THE THREE MONTHS ENDED MARCH 31, 2007,
HISTORICAL TRANSACTION VALUES FOR TRANSACTIONS
BETWEEN ZAOZHUANG CHINA UNITED AND ANXIA CEMENT
PURSUANT TO THE LIMESTONE AGREEMENT FOR THE TWO YEARS
ENDED DEC. 31, 2006 AND THE THREE MONTHS ENDED MARCH
31, 2007, AND THE PROJECTED ANNUAL SALES IN THE
AMOUNT OF RMB 21.3 MILLION ($2.7 MILLION) FROM
ZAOZHUANG CHINA UNITED TO ANXIA CEMENT AFTER
COMPLETION OF THE ACQUISITION PURSUANT TO THE
LIMESTONE AGREEMENT FOR THE YEAR ENDING DEC. 31,
2007. THIS PROPOSAL IS EXPECTED TO SATISFY THE
LIMESTONE REQUIREMENT OF THE GROUP, WHICH IS
ESSENTIAL FOR THE SMOOTH OPERATION OF ITS BUSINESS.
ALTUS CAPITAL LTD., AN INDEPENDENT FINANCIAL ADVISER,
REVIEWED THE REVISED ANNUAL CAP AND DECLARED THEM TO
BE ON NORMAL COMMERCIAL TERMS, IN THE ORDINARY COURSE
OF BUSINESS, FAIR AND REASONABLE AND IN THE INTERESTS
OF THE COMPANY AND ITS SHAREHOLDERS AS A WHOLE. THIS
IS A REASONABLE REQUEST.
8 Approve Issuance of Equity or For Against Mgmt
Equity-Linked Securities without
Preemptive Rights
THIS ITEM SEEKS TO REFRESH THE COMPANY'S MANDATE TO
ISSUE SHARES, REPRESENTING UP TO 20 PERCENT OF EACH
OF THE AGGREGATE NOMINAL AMOUNTS OF DOMESTIC SHARES
AND OVERSEAS LISTED FOREIGN SHARES IN ISSUE, WITHOUT
PREEMPTIVE RIGHTS. THE GENERAL MANDATE TO ISSUE
SHARES IS SUPPORTED FOR COMPANIES THAT LIMIT
DISCOUNTS TO 5 PERCENT OF THE MARKET PRICE OF SHARES
AND WHO, AT THE SAME TIME, HAVE NO HISTORY OF
REFRESHMENTS AS THESE FACTORS ADDRESS CONCERNS ON THE
POSSIBLE ISSUANCE OF DISCOUNTED SHARES TO RELATED
PARTIES AS WELL AS FURTHER DILUTION TO EXISTING
SHAREHOLDERS DUE TO FREQUENT REFRESHMENTS. IN THIS
CASE, THE COMPANY DID NOT PROVIDE DISCOUNT
RESTRICTIONS ON THE ISSUE PRICE OF SHARES UNDER THIS
MANDATE. GIVEN THIS AND CONSIDERING THAT THE MANDATE
MAY BE REFRESHED SEVERAL TIMES WITHIN A PERIOD OF ONE
YEAR, WE RECOMMEND SHAREHOLDERS OPPOSE THIS
RESOLUTION.
9 Amend Articles Re: Scope of Business For For Mgmt
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Mgmt Rec - Company Management Recommended Vote Page 10
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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Activities of the Company
THIS ITEM SEEKS APPROVAL TO AMEND THE COMPANY'S
ARTICLES OF ASSOCIATION TO REFLECT ITS SCOPE OF
BUSINESS AFTER OBTAINING THE CERTIFICATE OF
ELIGIBILITY IN RELATION TO FOREIGN PROJECT
SUBCONTRACTING ON MAY 15, 2006. THE COMPANY'S SCOPE
OF BUSINESS SHOULD INCLUDE: PRODUCTION OF NEW
BUILDING MATERIAL AND RELEVANT PRODUCTS, NEW
BUILDINGS, CEMENT AND RELEVANT PRODUCTS, GLASS FIBER
AND RELEVANT PRODUCTS; TECHNICAL RESEARCH OF
COMPOSITE MATERIAL AND RELEVANT PRODUCTS; MANUFACTURE
AND SALES, STORAGE, DELIVERY AND DISTRIBUTION OF
BUILDING MATERIALS; TECHNICAL RESEARCH, ENGINEERING
DESIGN AND ENGINEERING; GENERAL CONTRACTING OF
CEMENT, GLASS PRODUCTION LINE; ENGINEERING DESIGN AND
ENGINEERING; GENERAL CONTRACTING OF NEW BUILDING
MATERIALS; TECHNICAL CONSULTATION AND PROVISION OF
INFORMATION SERVICE IN RELATION TO THE ABOVE
MENTIONED BUSINESS; CONTRACTING OF ENGINEERING,
SURVEYING, CONSULTATION, DESIGN, SUPERVISION AND
MANAGEMENT SERVICES FOR FOREIGN PROJECTS IN BUILDING
MATERIALS, CONSTRUCTION AND TEXTILES INDUSTRIES;
EXPORT OF EQUIPMENT AND MATERIALS REQUIRED BY THE
ABOVE MENTIONED FOREIGN PROJECTS; DELEGATION AND
SECONDMENT OF WORKERS REQUIRED TO IMPLEMENT THE ABOVE
MENTIONED FOREIGN PROJECTS. GIVEN THAT THE PROPOSED
ITEM WOULD REFLECT THE COMPANY'S CURRENT SCOPE OF
BUSINESS, A VOTE IN FAVOR OF THIS ITEM IS
RECOMMENDED.
- ----------------------------------------------------------------------------------------------------------------------------------
06/01/07 - A CHINA RARE EARTH HOLDINGS G21089100 05/28/07 5,763,715
LIMITED
- ----------------------------------------------------------------------------------------------------------------------------------
1 Accept Financial Statements and Statutory For For Mgmt
Reports
2 Approve Final Dividend For For Mgmt
THE BOARD RECOMMENDS THE PAYMENT OF A FINAL DIVIDEND
OF HK$0.04 ($0.005) PER SHARE.
3a Reelect Jiang Quanlong as Director For For Mgmt
3b Reelect Qian Yuanying as Director For For Mgmt
3c Reelect Huang Chunhua as Director For For Mgmt
3d Authorize Board to Fix the Remuneration of For For Mgmt
Directors
4 Reappoint Shinewing (HK) CPA Ltd. as For For Mgmt
Auditors and Authorize Board to Fix Their
Remuneration
5 Approve Issuance of Equity or For Against Mgmt
Equity-Linked Securities without
Preemptive Rights
THIS ITEM SEEKS TO REFRESH THE COMPANY'S MANDATE TO
ISSUE SHARES, REPRESENTING UP TO 20 PERCENT OF
CURRENT
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 11
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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ISSUED CAPITAL, WITHOUT PREEMPTIVE RIGHTS. THE
GENERAL MANDATE TO ISSUE SHARES IS SUPPORTED FOR
COMPANIES THAT LIMIT DISCOUNTS TO 5 PERCENT OF THE
MARKET PRICE OF SHARES AND WHO, AT THE SAME TIME,
HAVE NO HISTORY OF REFRESHMENTS AS THESE FACTORS
ADDRESS CONCERNS ON THE POSSIBLE ISSUANCE OF
DISCOUNTED SHARES TO RELATED PARTIES AS WELL AS
FURTHER DILUTION TO EXISTING SHAREHOLDERS DUE TO
FREQUENT REFRESHMENTS. IN THIS CASE, THE COMPANY DID
NOT PROVIDE DISCOUNT RESTRICTIONS ON THE ISSUE PRICE
OF SHARES UNDER THIS MANDATE. GIVEN THIS AND
CONSIDERING THAT THE MANDATE MAY BE REFRESHED SEVERAL
TIMES WITHIN A PERIOD OF ONE YEAR, WE RECOMMEND
SHAREHOLDERS OPPOSE THIS RESOLUTION.
6 Authorize Repurchase of Up to 10 For For Mgmt
Percent of Issued Share Capital
THIS AUTHORITY IS LIMITED TO 10 PERCENT OF THE
OUTSTANDING SHARE CAPITAL OF THE COMPANY ON THE DATE
THE RESOLUTION IS PASSED AND OPERATES UNDER STRICT
REGULATORY GUIDELINES OF THE SEHK. WE BELIEVE THAT
WHEN TIMED CORRECTLY, CORPORATE STOCK REPURCHASES ARE
A LEGITIMATE USE OF CORPORATE FUNDS AND CAN ADD TO
LONG-TERM SHAREHOLDER RETURNS.
7 Authorize Reissuance of Repurchased For Against Mgmt
Shares
THIS MANDATE EFFECTIVELY INCREASES THE NUMBER OF
SHARES THAT MAY BE ISSUED WITHOUT PREEMPTIVE RIGHTS
TO 30 PERCENT OF ISSUED CAPITAL FROM THE ORIGINAL
LIMIT OF 20 PERCENT UNDER THE GENERAL MANDATE TO
ISSUE SHARES SOUGHT BY MOST HONG KONG COMPANIES.
GIVEN THAT THE GENERAL MANDATE TO ISSUE SHARES IS
SUBJECT TO ABUSE BY COMPANIES THAT ISSUE SHARES AT
DISCOUNTS TO THE MARKET PRICE, SUCH EXTENSION OF THE
GENERAL SHARE ISSUANCE MANDATE MAY INCREASE THE SCOPE
OF NON-PREEMPTIVE PLACEMENTS, PUTTING MINORITY
SHAREHOLDERS AT A DISADVANTAGE AS REPURCHASED SHARES
MAY ALSO BE REISSUED AT A DISCOUNT TO THE MARKET
PRICE. IN VIEW OF THIS, SHAREHOLDERS ARE RECOMMENDED
TO OPPOSE THIS ITEM UNLESS A MINIMAL DISCOUNT OF 5
PERCENT OR LESS IS SPECIFIED FOR SHARE ISSUANCES
UNDER A GENERAL MANDATE. IN THIS CASE, THE COMPANY
HAS NOT SPECIFIED DISCOUNT LIMITS FOR THE ISSUANCE OF
SHARES WITHOUT PREEMPTIVE RIGHTS. AS SUCH, WE
RECOMMEND SHAREHOLDERS VOTE AGAINST THIS RESOLUTION.
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11/16/06 - S COVANTA HOLDING CORP. *CVA* 22282E102 10/10/06 42,960
- ----------------------------------------------------------------------------------------------------------------------------------
1 Company-Specific--Organization-Related For For Mgmt
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 12
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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ISS AGREES THAT THIS PROVISION WHICH RESTRICTS THE
ACQUISITION AND TRANSFER OF STOCK BY FIVE PERCENT AND
GREATER SHAREHOLDERS IS NO LONGER NECESSARY GIVEN THE
COMPANY'S CURRENT POSITION. THE DELETION OF THIS
PROVISION WOULD AFFORD THE COMPANY MORE OPPORTUNITIES
FOR FINANCING AND WOULD OFFER THE COMPANY GREATER
LIQUIDITY.
2 Company-Specific--Organization-Related For Against Mgmt
ISS ENCOURAGES BRINGING ALL MATERIAL ITEMS TO A VOTE,
SO THAT SHAREHOLDERS MAY DETERMINE WHETHER THE
ACTIONS OF THE BOARD ARE IN SHAREHOLDERS' BEST
INTERESTS. BLANK CHECK PREFERRED STOCK CAN
POTENTIALLY BE USED AS A TAKEOVER DEFENSE BY PLACING
BLOCKS OF SHARES WITH PARTIES FRIENDLY TO MANAGEMENT.
PREFERRED STOCK CAN ALSO SUBSTANTIALLY DILUTE COMMON
SHAREHOLDERS' VOTING POWER AND EQUITY INTEREST.
BECAUSE THE TERMS OF PREFERRED STOCK ISSUED BY THE
COMPANY COULD HAVE A SIGNIFICANT IMPACT ON ALL
SHAREHOLDERS, WE DO NOT BELIEVE THAT SECTION 4.3
SHOULD BE DELETED, AS THIS WOULD ALLOW TERMS OF
PREFERRED SHARES TO BE ESTABLISHED BY THE BOARD
WITHOUT FURTHER APPROVAL BY SHAREHOLDERS.
- ----------------------------------------------------------------------------------------------------------------------------------
06/06/07 - A DEVON ENERGY CORP. *DVN* 25179M103 04/09/07 43,940
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
02/06/07 - A EMERSON ELECTRIC CO. *EMR* 291011104 11/28/06 15,170
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Split Mgmt
1.1 Elect Director C. Fernandez G --- Withhold
WE RECOMMEND A VOTE FOR THE DIRECTORS WITH THE
EXCEPTION OF CARLOS FERNANDEZ GONZALES. WE RECOMMEND
THAT SHAREHOLDERS WITHHOLD VOTES FROM CARLOS
FERNANDEZ GONZALES FOR SITTING ON MORE THAN THREE
BOARDS WHILE SERVING AS A CEO.
1.2 Elect Director W. J. Galvin --- For
1.3 Elect Director R. L. Ridgway --- For
1.4 Elect Director R. L. Stephenson --- For
2 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
06/06/07 - A EXPEDIA INC *EXPE* 30212P105 04/12/07 193,030
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Split Mgmt
1.1 Elect Director A. George (skip) Battle ---
For
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 13
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
WE RECOMMEND A VOTE FOR THE DIRECTORS WITH THE
EXCEPTION OF INSIDERS BARRY DILLER, VICTOR A.
KAUFMAN, WILLIAM R. FITZGERALD, DARA KHOSROWSHAHI AND
JOHN C. MALONE, AND AFFILIATED OUTSIDER SIMON J.
BREAKWELL. WE RECOMMEND THAT SHAREHOLDERS WITHHOLD
VOTES FROM WILLIAM R. FITZGERALD FOR STANDING AS AN
INSIDER ON THE COMPENSATION COMMITTEE, FOR FAILURE TO
ESTABLISH AN INDEPENDENT NOMINATING COMMITTEE, AND
FOR FAILURE TO ESTABLISH A MAJORITY INDEPENDENT
BOARD. WE ALSO RECOMMEND THAT SHAREHOLDERS WITHHOLD
VOTES FROM JOHN C. MALONE, BARRY DILLER, VICTOR A.
KAUFMAN, DARA KHOSROWSHAHI, AND SIMON J. BREAKWELL
FOR FAILURE TO ESTABLISH AN INDEPENDENT NOMINATING
COMMITTEE AND FOR FAILURE TO ESTABLISH A MAJORITY
INDEPENDENT BOARD.
1.2 Elect Director Simon J. Breakwell ---
Withhold
1.3 Elect Director Barry Diller --- Withhold
1.4 Elect Director Jonathan L. Dolgen --- For
1.5 Elect Director William R. Fitzgerald ---
Withhold
1.6 Elect Director David Goldhill --- For
1.7 Elect Director Victor A. Kaufman ---
Withhold
1.8 Elect Director Peter M. Kern --- For
1.9 Elect Director Dara Khosrowshahi ---
Withhold
1.10 Elect Director John C. Malone --- Withhold
2 Amend Omnibus Stock Plan For For Mgmt
III. VOTE RECOMMENDATION ISS GENERALLY
RECOMMENDS THAT SHAREHOLDERS VOTE FOR AMENDMENTS TO
ADD PERFORMANCE GOALS TO EXISTING COMPENSATION PLANS
TO COMPLY WITH THE PROVISIONS OF SECTION 162(m).
3 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
10/20/06 - A FOCUS MEDIA HLDG LTD *FMCN* 34415V109 08/28/06 620
- ----------------------------------------------------------------------------------------------------------------------------------
MEETING FOR ADR HOLDERS
1 ELECTION OF THE DIRECTOR: DAVID FENG YU. For For Mgmt
2 ELECTION OF THE DIRECTOR: CHARLES CHAO. For For Mgmt
3 ELECTION OF THE DIRECTOR: DAQING QI. For For Mgmt
4 APPROVAL TO INCREASE THE MAXIMUM NUMBER OF For For Mgmt
DIRECTORS
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 14
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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TO THIRTEEN (13), AS SET FORTH IN THE
COMPANY S NOTICE OF MEETING ENCLOSED
HEREWITH.
5 APPROVAL OF THE 2006 EMPLOYEE SHARE OPTION For For Mgmt
PLAN AND THE AUTHORIZATION OF OFFICERS TO
ALLOT, ISSUE OR DELIVER SHARES PURSUANT TO
THE 2006 EMPLOYEE SHARE OPTION PLAN, AS
SET FORTH IN THE COMPANY S NOTICE OF
MEETING ENCLOSED HEREWITH.
V. VOTE RECOMMENDATION THE TOTAL COST OF THE
COMPANY'S PLANS OF 13.42 PERCENT IS WITHIN THE
ALLOWABLE CAP FOR THIS COMPANY OF 20.81 PERCENT.
6 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
05/24/07 - A GAMESA CORPORACION TECHNOLOGICA E54667113 None 295,527
S.A
- ----------------------------------------------------------------------------------------------------------------------------------
1 Approve Individual and Consolidated For For Mgmt
Financial Statements, and Allocation of
Income
2 Amend Articles 10, 11, 13, 13 bis, 15, 16, For Against Mgmt
17, 18 bis, 18 ter, and 18 quater of
Bylaws to Adhere to the Unified Code of
Corporate Governance
BECAUSE APPROVAL OF THIS ITEM WOULD ALLOW DIRECTORS
TO BE ELECTED FOR SIX-YEAR TERMS AND BECAUSE THE
PROPOSED AMENDMENTS APPEAR TO DEFINE A WIDER SCOPE OF
POWERS GRANTED TO THE BOARD AT THE DETRIMENT OF
SHAREHOLDERS, WHICH IS NOT IN LINE WITH THE NEW CODE,
SUPPORT FOR THIS RESOLUTION IS NOT RECOMMENDED.
3 Amend Articles 3, 4, 5, 6, 7, 8, 9, 10, For Against Mgmt
11, 13, 14, 16, 17, 18, 19, 19 bis, 20,
23, 24, and Final Disposition of the
General Meeting Guidelines to Comply with
the Unified Code of Corporate Governance
HOWEVER, INSTEAD OF STIPULATING THAT A NUMBER OF
SPECIFIC MATERIAL TRANSACTIONS NOT COVERED UNDER
EXISTING COMPANY LAW WOULD BE SUBJECT TO A
SHAREHOLDER VOTE, GAMESA STIPULATED THE FOLLOWING
COMPETENCIES OF THE GENERAL MEETING: MERGER, SPLIT,
OR TRANSFORMATION OF THE COMPANY, ITS DISSOLUTION OR
THE ASSIGNMENT OF ALL ITS ASSETS AND LIABILITIES"
THAT APPEAR MORE IN LINE WITH THE EXISTING
DEFINITION OF MERGER ("FUSION" IN SPANISH) UNDER
SPANISH LAW. BECAUSE SPANISH REGULATORS FOUND THAT
EXISTING LEGISLATION ON ROLE OF SHAREHOLDERS
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 15
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
IN CERTAIN MERGERS WARRANTED A BEST PRACTICE
RECOMMENDATION, AND BECAUSE THE COMPANY'S
PROPOSAL APPEARS TO BE A REAFFIRMATION OF THE STATUS
QUO RATHER THAN THE ESTABLISHMENT OF NEW SHAREHOLDER
RIGHTS TO APPROVE ALL MATERIAL TRANSACTIONS AS
RECOMMENDED BY THE NEW CODE, WE DO NOT FIND THE
COMPANY'S PROPOSAL TO BE IN THE BEST INTERESTS
OF SHAREHOLDERS.
RE-ELECTION OF BOARD MEMBERS
4 Elect Directors For Against Mgmt
4.1 Re-elect Guillermo Ulacia Arnaiz as a
Board Member --- Against
AS THESE ITEMS PROPOSE THAT EXISTING DIRECTORS AND
NEW NOMINEES BE ELECTED FOR A TERM OF SIX YEARS, IT
IS RECOMMENDED THAT SHAREHOLDERS OPPOSE ITEMS
4.1-4.10
4.2 Re-elect Carlos Rodriguez-Quiroga Menendez
as a Board Member --- Against
4.3 Re-elect Santiago Bergareche Busquet as a
Board Member --- Against
4.4 Re-elect Jorge Calvet Spinatsch as a Board
Member --- Against
4.5 Re-elect Juan Luis Arregui Ciarsolo as a
Board Member --- Against
4.6 Re-elect Corporacion IBV, Servicios y
Tecnologias S.A. as a Board Member ---
Against
NOMINATION OF NEW BOARD MEMBERS
4 Elect Directors For Against Mgmt
5 Nomination of Auditor For For Mgmt
6 Authorize Repurchase of Shares For For Mgmt
7 Authorize Board to Ratify and Execute For For Mgmt
Approved Resolutions
- ----------------------------------------------------------------------------------------------------------------------------------
06/11/07 - A GUANGDONG INVESTMENT LTD. Y2929L100 06/06/07 3,091,734
- ----------------------------------------------------------------------------------------------------------------------------------
1 Accept Financial Statements and Statutory For For Mgmt
Reports
2 Approve Final Dividend For For Mgmt
3a Reelect Li Wai Keung as Director For For Mgmt
3b Reelect Chan Cho Chak, John as Director For For Mgmt
3c Reelect Li Kwok Po, David as Director For For Mgmt
3d Reelect Jiang Jin as Director For For Mgmt
3e Reelect Sun Yingming as Director For For Mgmt
3f Authorize Board to Fix the Remuneration of For For Mgmt
Directors
4 Reappoint Auditors and Authorize Board to For For Mgmt
Fix Their Remuneration
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 16
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
5 Approve Issuance of Equity or For Against Mgmt
Equity-Linked Securities without
Preemptive Rights
IN THIS CASE, THE COMPANY DID NOT PROVIDE DISCOUNT
RESTRICTIONS ON THE ISSUE PRICE OF SHARES UNDER THIS
MANDATE. GIVEN THIS AND CONSIDERING THAT THE MANDATE
MAY BE REFRESHED SEVERAL TIMES WITHIN A PERIOD OF ONE
YEAR, WE RECOMMEND SHAREHOLDERS OPPOSE THIS
RESOLUTION.
6 Authorize Repurchase of Up to 10 Percent For For Mgmt
of Issued Share Capital
7 Authorize Reissuance of Repurchased Shares For Against Mgmt
IN THIS CASE, THE COMPANY HAS NOT SPECIFIED DISCOUNT
LIMITS FOR THE ISSUANCE OF SHARES WITHOUT PREEMPTIVE
RIGHTS. AS SUCH, WE RECOMMEND SHAREHOLDERS VOTE
AGAINST THIS RESOLUTION.
- ----------------------------------------------------------------------------------------------------------------------------------
06/08/07 - A HAITIAN INTERNATIONAL HOLDINGS G4232C108 06/05/07 2,822,397
LTD
- ----------------------------------------------------------------------------------------------------------------------------------
1 Accept Financial Statements and Statutory For For Mgmt
Reports
2 Reelect Zhang Jianguo as Director and For For Mgmt
Authorize Board to Fix His Remuneration
3 Reelect Zhang Jianfeng as Director and For For Mgmt
Authorize Board to Fix His Remuneration
4 Reelect Guo Mingguang as Director and For For Mgmt
Authorize Board to Fix His Remuneration
5 Reelect Pan Chaoyang as Director and For For Mgmt
Authorize Board to Fix His Remuneration
6 Reappoint PricewaterhouseCoopers as For For Mgmt
Auditors and Authorize Board to Fix Their
Remuneration
7 Approve Issuance of Equity or For Against Mgmt
Equity-Linked Securities without
Preemptive Rights
THIS ITEM SEEKS TO REFRESH THE COMPANY'S MANDATE TO
ISSUE SHARES, REPRESENTING UP TO 20 PERCENT OF
CURRENT ISSUED CAPITAL, WITHOUT PREEMPTIVE RIGHTS.
THE GENERAL MANDATE TO ISSUE SHARES IS SUPPORTED FOR
COMPANIES THAT LIMIT DISCOUNTS TO 5 PERCENT OF THE
MARKET PRICE OF SHARES AND WHO, AT THE SAME TIME,
HAVE NO HISTORY OF REFRESHMENTS AS THESE FACTORS
ADDRESS CONCERNS ON THE POSSIBLE ISSUANCE OF
DISCOUNTED SHARES TO RELATED PARTIES AS WELL AS
FURTHER
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 17
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
DILUTION TO EXISTING SHAREHOLDERS DUE TO FREQUENT
REFRESHMENTS. IN THIS CASE, THE COMPANY DID NOT
PROVIDE DISCOUNT RESTRICTIONS ON THE ISSUE PRICE OF
SHARES UNDER THIS MANDATE. GIVEN THIS AND CONSIDERING
THAT THE MANDATE MAY BE REFRESHED SEVERAL TIMES
WITHIN A PERIOD OF ONE YEAR, WE RECOMMEND
SHAREHOLDERS OPPOSE THIS RESOLUTION.
8 Authorize Repurchase of Up to 10 Percent For For Mgmt
of Issued Share Capital
THIS AUTHORITY IS LIMITED TO 10 PERCENT OF THE
OUTSTANDING SHARE CAPITAL OF THE COMPANY ON THE DATE
THE RESOLUTION IS PASSED AND OPERATES UNDER STRICT
REGULATORY GUIDELINES OF THE SEHK. WE BELIEVE THAT
WHEN TIMED CORRECTLY, CORPORATE STOCK REPURCHASES ARE
A LEGITIMATE USE OF CORPORATE FUNDS AND CAN ADD TO
LONG-TERM SHAREHOLDER RETURNS.
9 Authorize Reissuance of Repurchased Shares For Against Mgmt
THIS MANDATE EFFECTIVELY INCREASES THE NUMBER OF
SHARES THAT MAY BE ISSUED WITHOUT PREEMPTIVE RIGHTS
TO 30 PERCENT OF ISSUED CAPITAL FROM THE ORIGINAL
LIMIT OF 20 PERCENT UNDER THE GENERAL MANDATE TO
ISSUE SHARES SOUGHT BY MOST HONG KONG COMPANIES.
GIVEN THAT THE GENERAL MANDATE TO ISSUE SHARES IS
SUBJECT TO ABUSE BY COMPANIES THAT ISSUE SHARES AT
DISCOUNTS TO THE MARKET PRICE, SUCH EXTENSION OF THE
GENERAL SHARE ISSUANCE MANDATE MAY INCREASE THE SCOPE
OF NON-PREEMPTIVE PLACEMENTS, PUTTING MINORITY
SHAREHOLDERS AT A DISADVANTAGE AS REPURCHASED SHARES
MAY ALSO BE REISSUED AT A DISCOUNT TO THE MARKET
PRICE. IN VIEW OF THIS, SHAREHOLDERS ARE RECOMMENDED
TO OPPOSE THIS ITEM UNLESS A MINIMAL DISCOUNT OF 5
PERCENT OR LESS IS SPECIFIED FOR SHARE ISSUANCES
UNDER A GENERAL MANDATE. IN THIS CASE, THE COMPANY
HAS NOT SPECIFIED DISCOUNT LIMITS FOR THE ISSUANCE OF
SHARES WITHOUT PREEMPTIVE RIGHTS. AS SUCH, WE
RECOMMEND SHAREHOLDERS VOTE AGAINST THIS RESOLUTION.
- ----------------------------------------------------------------------------------------------------------------------------------
04/26/07 - A HONG KONG EXCHANGES AND CLEARING Y3506N121 04/20/07 1,415,508
LTD
- ----------------------------------------------------------------------------------------------------------------------------------
1 Accept Financial Statements and Statutory For For Mgmt
Reports
2 Approve Final Dividend For For Mgmt
3a Elect John E Strickland as Director For For Mgmt
3b Elect Oscar S H Wong as Director For For Mgmt
4 Reappoint PricewaterhouseCoopers as For For Mgmt
Auditors and Authorize Board to Fix Their
Remuneration
5 Authorize Repurchase of Up to 10 For For Mgmt
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 18
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
Percent of Issued Share Capital
6a Approve Remuneration of HK$450,000 to the For For Mgmt
Chairman and HK$300,000 to each of the
other Non-Executive Directors
6b Approve Remuneration of HK$50,000 to the For For Mgmt
Chairman and Every Member (Excluding
Excutive Director) of Certain Board
Committees
- ----------------------------------------------------------------------------------------------------------------------------------
05/15/07 - S IOI CORPORATION BERHAD Y41763106 None 351,568
- ----------------------------------------------------------------------------------------------------------------------------------
SPECIAL BUSINESS
1 Approve Capital Repayment of up to MYR For For Mgmt
1.375 Billion on the Basis of a Cash
Distribution of MYR 21 for Each Cancelled
Share with the Remaining Balance to be
Set-Off Against the Share Premium Account
2 Amend Memorandum and Articles of For For Mgmt
Association to Reflect Changes in Capital
ORDINARY BUSINESS
1 Approve Share Spilt Involving the For For Mgmt
Subdivision of Every One Existing Ordinary
Share of MYR 0.50 Each Held into Five
Ordinary Shares of MYR 0.10 Each
- ----------------------------------------------------------------------------------------------------------------------------------
06/12/07 - A IPG PHOTONICS CORP *IPGP* 44980X109 04/27/07 13,774
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Split Mgmt
1.1 Elect Director Valentin P. Gapontsev ---
For
WE RECOMMEND A VOTE FOR THE DIRECTORS WITH THE
EXCEPTION OF INSIDER IGOR SAMARTSEV. WE RECOMMEND
THAT SHAREHOLDERS WITHHOLD VOTES FROM IGOR SAMARTSEV
FOR POOR ATTENDANCE.
1.2 Elect Director Eugene Shcherbakov --- For
1.3 Elect Director Igor Samartsev --- Withhold
1.4 Elect Director Robert A. Blair --- For
1.5 Elect Director Michael C. Child --- For
1.6 Elect Director John H. Dalton --- For
1.7 Elect Director Henry E. Gauthier --- For
1.8 Elect Director William S. Hurley --- For
1.9 Elect Director William F. Krupke --- For
2 Ratify Auditors For For Mgmt
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 19
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
03/29/07 - A KLA-TENCOR CORP. *KLAC* 482480100 02/15/07 68,850
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
04/30/07 - A MIDAS HOLDINGS LTD Y6039M114 None 1,808,285
- ----------------------------------------------------------------------------------------------------------------------------------
1 Adopt Financial Statements and Directors' For For Mgmt
and Auditors' Reports
2 Declare Final Dividend of SGD 0.005 Per For For Mgmt
Share
3 Approve Directors' Fees of SGD 150,000 for For For Mgmt
the Year Ended Dec. 31, 2006 (2005: SGD
120,000)
4 Reelect Chew Hwa Kwang, Patrick as Director For Against Mgmt
DUE TO THE COMPANY'S FAILURE TO PROVIDE THE ANNUAL
REPORT FOR FINANCIAL YEAR 2006, WE ARE UNABLE TO
ASCERTAIN THE LEVEL OF INDEPENDENCE OF THESE
NOMINEES. GIVEN THIS AND CONSIDERING OUR POSITION
AGAINST EXECUTIVE DIRECTORS WHO ARE ALSO MEMBERS OF
KEY BOARD COMMITTEES, AS THEIR PRESENCE THREATENS TO
UNDERMINE THE PURPOSE OF THESE COMMITTEES IN
PROVIDING INDEPENDENT OVERSIGHT AND PREVENTING
CONFLICTS OF INTEREST, AND THE RECOMMENDATIONS
STIPULATED IN SINGAPORE'S CODE OF CORPORATE
GOVERNANCE THAT ALSO LIMIT MEMBERS OF THE AUDIT AND
REMUNERATION COMMITTEES TO NON-EXECUTIVES ONLY, A
VOTE AGAINST THESE RESOLUTIONS IS RECOMMENDED.
5 Reelect Gay Chee Cheong as Director For Against Mgmt
6 Reelect Chan Soo Sen as Director For Against Mgmt
7 Reappoint BDO Raffles as Auditors and For For Mgmt
Authorize Board to Fix Their Remuneration
8 Approve Issuance of Shares without For For Mgmt
Preemptive Rights
9 Approve Issuance of Shares and Grant For Against Mgmt
Options Pursuant to the Midas Employee
Share Option Scheme
IN THIS CASE, THE PERCENTAGE OF SHARES AVAILABLE
UNDER THE SCHEME IS 15 PERCENT OF ISSUED CAPITAL,
WHICH IS CONSIDERED AN UNACCEPTABLE LEVEL OF
DILUTION. THIS SCHEME CANNOT BE CONSIDERED
SUFFICIENTLY WELL-STRUCTURED TO JUSTIFY A POTENTIAL
DILUTION LEVEL OF 15 PERCENT.
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 20
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
11/08/06 - S MSYSTEMS LTD (FORMERLY M-SYSTEMS M7061C100 10/03/06 11
FLASH DISK PIONEER)
- ----------------------------------------------------------------------------------------------------------------------------------
MEETING FOR ADR HOLDERS
1 APPROVAL OF THE AGREEMENT AND PLAN OF For For Mgmt
MERGER, DATED AS OF JULY 30, 2006, AMONG
MSYSTEMS LTD., SANDISK CORPORATION AND
PROJECT DESERT LTD. AND APPROVAL OF THE
MERGER OF PROJECT DESERT INTO MSYSTEMS
UNDER THE PROVISIONS OF THE ISRAELI
COMPANIES LAW, SO THA
CONCLUSION: BASED ON CAREFUL ANALYSIS IN VALUATION
AND RATIONALE, ISS BELIEVES THAT THIS MERGER WARRANTS
SHAREHOLDER SUPPORT.
2 APPROVAL OF THE PAYMENT TO MR. GURION For For Mgmt
MELTZER, CHAIRMAN OF THE BOARD OF
DIRECTORS OF MSYSTEMS SINCE SEPTEMBER
2006, OF COMPENSATION IN THE AMOUNT OF US$
10,000 PER MONTH, IN CONSIDERATION FOR HIS
SERVICES AS CHAIRMAN OF THE BOARD
3 APPROVAL OF THE PAYMENT TO MR. YOSSI For For Mgmt
BEN-SHALOM, A MEMBER OF THE BOARD OF
DIRECTORS OF MSYSTEMS WHO HAS BEEN
PROVIDING CONSULTING SERVICES TO MSYSTEMS
SINCE OCTOBER 2005, OF COMPENSATION IN THE
AMOUNT OF NIS 12,500 PER MONTH
4 APPROVAL OF THE GRANT TO MR. YOSSI For Against Mgmt
BEN-SHALOM, AS ADDITIONAL COMPENSATION FOR
THE CONSULTING SERVICES PROVIDED BY HIM TO
MSYSTEMS, OF OPTIONS TO PURCHASE 10,000
ORDINARY SHARES OF MSYSTEMS
GIVEN THE EXCESSIVE 18.6-PERCENT DILUTION ASSOCIATED
WITH THE COMPANY'S OPTION PLANS, THIS REQUEST DOES
NOT MERIT SUPPORT.
5 APPROVAL OF THE PAYMENT TO MS. ZEHAVA For For Mgmt
SIMON, A MEMBER OF THE BOARD OF DIRECTORS
OF MSYSTEMS OF COMPENSATION IN THE AMOUNT
OF US$30,000 FOR SUCH SERVICES, ALL AS
MORE
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 21
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
FULLY DESCRIBED IN THE PROXY STATEMENT.
- ----------------------------------------------------------------------------------------------------------------------------------
06/21/07 - A NVIDIA CORPORATION *NVDA* 67066G104 04/23/07 88,440
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Split Mgmt
1.1 Elect Director James C. Gaither ---
Withhold
THE COMPENSATION COMMITTEE IS CHARGED WITH
ADMINISTERING THE COMPANY'S STOCK OPTION PLANS,
INCLUDING THE STOCK OPTION BACKDATING PERIOD.
HISTORICALLY, THE COMPENSATION COMMITTEE HAS
DELEGATED AUTHORITY FOR STOCK OPTION AWARDS TO
EMPLOYEES BELOW THE EXECUTIVE STAFF LEVEL TO THE CEO.
MR. COXE AND MR. JONES WERE MEMBERS OF THE
COMPENSATION COMMITTEE IN FISCAL YEARS 2000 - 2002
AND MR. GAITHER IN 2001 - 2002. DUE TO THE CLASSIFIED
BOARD STRUCTURE, ONLY MR. GAITHER IS UP FOR
RE-ELECTION. THEREFORE, ISS RECOMMENDS A VOTE TO
WITHHOLD FROM MR. GAITHER DUE TO THE LACK OF
OVERSIGHT REGARDING THE HISTORICAL ADMINISTRATION OF
STOCK OPTION PLANS, AS WELL AS THE LACK OF DETAIL
REGARDING GRANT TIMING AND AUTHORITY AS DETAILED
ABOVE. ISS IS NOT RECOMMENDING A WITHHOLD VOTE FOR
THE CEO, MR. HUANG, BECAUSE THE ADMINISTRATION OF THE
STOCK OPTION PLANS RESIDES WITH THE COMPENSATION
COMMITTEE.
1.2 Elect Director Jen-Hsun Huang --- For
1.3 Elect Director A. Brooke Seawell --- For
2 Approve Omnibus Stock Plan For Against Mgmt
VI. VOTE RECOMMENDATION COMPANY RESPONSE DURING
THE DRAFT REVIEW PERIOD, THE COMPANY PROVIDED
COMMENTS IN RESPONSE TO ISS' VOTE RECOMMENDATION. IN
THE PAST TWO YEARS NVIDIA HAS PRODUCED A 167 % RETURN
FOR ITS STOCKHOLDERS. DUE TO THIS APPRECIATION AND A
BELIEF IN THE COMPANY'S FUTURE, AS OF APRIL 6,
2007, NVIDIA EMPLOYEES HELD A TOTAL OF 40,490,539
OPTIONS THAT WERE VESTED, EXERCISED AND
"IN-THE-MONEY", REPRESENTING OVER 99% OF ALL VESTED
OPTIONS AT THAT DATE. OF THESE VESTED, EXERCISED AND
"IN-THE-MONEY" OPTIONS, APPROXIMATELY 69.2% WERE HELD
BY RANK AND FILE EMPLOYEES. NVIDIA BELIEVES THAT IF
SUCH VESTED IN-THE-MONEY OPTIONS WERE TREATED THE
SAME AS OUTSTANDING STOCK, NVIDIA WOULD BE WITHIN THE
ALLOWABLE CAP FOR ITS INDUSTRY. NVIDIA'S BOARD
AND MANAGEMENT BELIEVES THAT AN EMPLOYEE HOLDING SUCH
VESTED, IN-THE-MONEY OPTIONS IS DEMONSTRATING
CONFIDENCE IN THE COMPANY AND
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 22
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
SHOULD BE TREATED AS THOUGH THAT EMPLOYEE HAD DECIDED
TO HOLD STOCK IN THE COMPANY. LIKE ANY STOCKHOLDER,
SUCH EMPLOYEE COULD EXERCISE AND SELL THE STOCK, BUT
BY HOLDING IS EXPRESSING CONFIDENCE IN THE
COMPANY'S FUTURE PROSPECTS. NVIDIA'S
BOARD AND MANAGEMENT BELIEVES THAT ANY POLICY THAT
ANY POLICY THAT VALUES SELLING OF STOCK BY EMPLOYEES
AND MANAGEMENT OVER HOLDING SUCH SHARES IS NOT
CONSISTENT WITH DEVELOPING LONG TERM SHAREHOLDER
VALUE AND RETURNS. IT IS THE STRONGLY HELD BELIEF OF
THE NVIDIA'S BOARD AND MANAGEMENT THAT
EMPLOYEES HOLDING VESTED, "IN-THE-MONEY" OPTIONS IS
NOT ADVERSE TO THE INTERESTS OF SHAREHOLDERS AND
DEMONSTRATES CONFIDENCE IN THE COMPANY. ISS POSITION
WE COMMEND THE COMPANY FOR EXPRESSLY FORBIDDING THE
REPRICING OF STOCK OPTIONS UNDER THE PLAN. HOWEVER,
THE ESTIMATED SHAREHOLDER VALUE TRANSFER OF THE
COMPANY'S PLANS OF 19 PERCENT EXCEEDS OUR ALLOWABLE
CAP FOR THIS COMPANY OF 12 PERCENT.
3 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
06/05/07 - S NWS HOLDINGS LIMITED (FRMLY G66897110 None 610,438
PACIFIC PORTS COMPANY LTD.)
- ----------------------------------------------------------------------------------------------------------------------------------
1 Approve Acquisition by NWS Financial For For Mgmt
Management Services Ltd. of Approximately
247.0 Million Shares in Taifook Securities
Group Ltd. from the Vendors for an
Aggregate Purchase Price of HK$600.2
Million
- ----------------------------------------------------------------------------------------------------------------------------------
11/08/06 - A OPLINK COMMUNICATIONS, INC. 68375Q403 09/20/06 59,310
*OPLK*
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
3 Reduce Authorized Preferred Stock For For Mgmt
WE BELIEVE THIS PROPOSAL IS IN SHAREHOLDERS' BEST
INTERESTS BECAUSE IT WOULD LIMIT FUTURE DILUTION OF
THEIR INVESTMENT AND PROVIDE SOME COST SAVINGS TO THE
COMPANY.
- ----------------------------------------------------------------------------------------------------------------------------------
04/16/07 - S PACIFIC ANDES INTERNATIONAL G6842Q104 None 657,453
HOLDINGS LTD.
- ----------------------------------------------------------------------------------------------------------------------------------
1 Approve Material Dilution of Interest in For For Mgmt
Pacific Andes (Holdings) Ltd. (PAH) as a
Result of the Full Conversion by Holders
of the Convertible Bonds to be
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 23
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
Issued by PAH into New Shares in PAH
THIS ITEM SEEKS TO APPROVE THE DEEMED DISPOSAL BY THE
COMPANY OF ITS 7.2 PERCENT INTEREST IN PACIFIC ANDES
(HLDGS.) LTD. (PAH), A SUBSIDIARY OF THE COMPANY. THE
DEEMED DISPOSAL IS A RESULT OF THE SUBSCRIPTION
AGREEMENT BETWEEN PAH AND THE HONGKONG AND SHANGHAI
BANKING CORP. LTD. (HSBC) IN RELATION TO THE ISSUANCE
BY PAH OF CONVERTIBLE BONDS IN THE AGGREGATE
PRINCIPAL AMOUNT OF $93.0 MILLION (CONVERTIBLE BONDS)
TO HSBC OR ANY SUBSCRIBERS PROCURED BY HSBC AND THE
ISSUANCE BY PAH OF APPROXIMATELY 662.2 MILLION PAH
SHARES AT THE EXERCISE PRICE OF SGD 0.52 ($0.3) EACH
(PAH RIGHTS SHARES) BY WAY OF A RIGHTS ISSUE ON THE
BASIS OF ONE NEW PAH SHARE FOR EACH EXISTING PAH
SHARE (PAH RIGHTS ISSUE). THE CONVERTIBLE BONDS WOULD
HAVE AN INTEREST RATE OF 4.0 PERCENT SEMI-ANNUALLY IN
ARREARS AND AN INITIAL CONVERSION PRICE OF SGD 1.0813
($0.7), REPRESENTING A DISCOUNT OF 5.1 PERCENT OVER
THE CLOSING PRICE OF THE PAH SHARES ON APRIL 2, 2006,
THE DATE OF WRITING OF THIS REPORT AND A PREMIUM OF
2.2 PERCENT OVER THE AVERAGE CLOSING PRICE OF PAH
SHARES FROM MARCH 26, 2007, THE NEXT TRADING DAY
AFTER THE ANNOUNCEMENT IN RELATION TO THE ISSUANCE OF
CONVERTIBLE BONDS WAS POSTED ON THE SINGAPORE
EXCHANGE SECURITIES LTD. (SGX-ST), TO APRIL 2, 2006.
HOLDERS OF THE CONVERTIBLE BONDS MAY ELECT TO
EXERCISE THE CONVERSION RIGHT UNDER THE CONVERTIBLE
BONDS AT ANY TIME ON OR AFTER MAY 29, 2007 UP TO THE
CLOSE OF BUSINESS ON APRIL 8, 2012. ASSUMING FULL
CONVERSION OF THE CONVERTIBLE BONDS AND ASSUMING ALL
PAH RIGHTS SHARES UNDER THE PAH RIGHTS ISSUE HAVE
BEEN SUBSCRIBED FOR BY PAH SHAREHOLDERS ON THE
REGISTER OF MEMBERS OF PAH ON MAY 11, 2007, THE
COMPANY'S INTEREST IN PAH WOULD DECREASE BY
APPROXIMATELY 7.2 PERCENT FROM 65.1 PERCENT TO 57.9
PERCENT. ESTIMATED NET PROCEEDS FROM THE ISSUANCE OF
CONVERTIBLE BONDS OF APPROXIMATELY $90.6 MILLION IS
INTENDED TO BE USED AS TO $71.2 MILLION FOR FUNDING
THE ACQUISITION BY GOLDEN TARGET PACIFIC LTD., A
SUBSIDIARY OF THE COMPANY, OF A 45.0 PERCENT INTEREST
IN SUPER INVESTMENT LTD. (SUPER INVESTMENT), THE
CONTROLLING SHAREHOLDER OF CHINA FISHERY GROUP LTD.,
A COMPANY THAT HAS ACHIEVED COMMENDABLE EARNINGS
GROWTH DUE TO ITS EXPANSION IN THE PACIFIC OCEAN AS
WELL AS ACQUISITIONS OF FISHING AND FISHMEAL
PROCESSING OPERATIONS IN PERU (ACQUISITION). THE
REMAINING BALANCE WOULD BE USED TO FOR GENERAL
WORKING CAPITAL PURPOSES. IN THE EVENT THAT THE
ACQUISITION DOES NOT PROCEED, PAH MAY ELECT TO REFUND
THE $71.2 MILLION AND USE THAT AMOUNT
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 24
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
ENTIRELY FOR GENERAL WORKING CAPITAL PURPOSES OR
REFUND BY OBTAINING 90 SHARES IN SUPER INVESTMENT.
THE PROPOSAL APPEARS REASONABLE AS IT WOULD FURTHER
ENLARGE THE CAPITAL BASE OF PAH AT THE SAME TIME
FACILITATE THE GROWTH OF THE COMPANY AND ITS
SUBSIDIARIES AS ONE OF THE MOST UNIQUELY POSITIONED
INTEGRATED SEAFOOD CONGLOMERATES IN THE WORLD. THIS
IS A REASONABLE REQUEST.
- ----------------------------------------------------------------------------------------------------------------------------------
05/31/07 - A REXCAPITAL FINANCIAL HOLDINGS G75549124 None 4,726,646
LTD
- ----------------------------------------------------------------------------------------------------------------------------------
1 Accept Financial Statements and Statutory For For Mgmt
Reports
2a Reelect Boo Chun Lon as Director For For Mgmt
2b Reelect Chow Siu Ngor as Director For For Mgmt
2c Reelect Lee Ka Lun as Director For For Mgmt
3 Authorize Board to Fix Remuneration of For For Mgmt
Directors
4 Reappoint Auditors and Authorize Board to For For Mgmt
Fix Their Remuneration
THE BOARD IS PROPOSING TO REAPPOINT TING HO KWAN
& CHAN AS THE COMPANY'S AUDITORS FOR THE
YEAR.
5 Authorize Repurchase of Up to 10 Percent For For Mgmt
of Issued Share Capital
THIS AUTHORITY IS LIMITED TO 10 PERCENT OF THE
OUTSTANDING SHARE CAPITAL OF THE COMPANY ON THE DATE
THE RESOLUTION IS PASSED AND OPERATES UNDER STRICT
REGULATORY GUIDELINES OF THE SEHK. WE BELIEVE THAT
WHEN TIMED CORRECTLY, CORPORATE STOCK REPURCHASES ARE
A LEGITIMATE USE OF CORPORATE FUNDS AND CAN ADD TO
LONG-TERM SHAREHOLDER RETURNS.
6 Approve Issuance of Equity or For Against Mgmt
Equity-Linked Securities without
Preemptive Rights
THIS ITEM SEEKS TO REFRESH THE COMPANY'S MANDATE TO
ISSUE SHARES, REPRESENTING UP TO 20 PERCENT OF
CURRENT ISSUED CAPITAL, WITHOUT PREEMPTIVE RIGHTS.
THE GENERAL MANDATE TO ISSUE SHARES IS SUPPORTED FOR
COMPANIES THAT LIMIT DISCOUNTS TO 5 PERCENT OF THE
MARKET PRICE OF SHARES AND WHO, AT THE SAME TIME,
HAVE NO HISTORY OF REFRESHMENTS AS THESE FACTORS
ADDRESS CONCERNS ON THE POSSIBLE ISSUANCE OF
DISCOUNTED SHARES TO RELATED PARTIES AS WELL AS
FURTHER DILUTION TO EXISTING SHAREHOLDERS DUE TO
FREQUENT REFRESHMENTS. IN THIS CASE, THE COMPANY DID
NOT PROVIDE DISCOUNT RESTRICTIONS ON THE ISSUE PRICE
OF SHARES UNDER THIS MANDATE. GIVEN THIS AND
CONSIDERING THAT THE MANDATE MAY BE REFRESHED
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 25
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
SEVERAL TIMES WITHIN A PERIOD OF ONE YEAR, WE
RECOMMEND SHAREHOLDERS OPPOSE THIS RESOLUTION.
7 Authorize Reissuance of Repurchased Shares For Against Mgmt
THIS MANDATE EFFECTIVELY INCREASES THE NUMBER OF
SHARES THAT MAY BE ISSUED WITHOUT PREEMPTIVE RIGHTS
TO 30 PERCENT OF ISSUED CAPITAL FROM THE ORIGINAL
LIMIT OF 20 PERCENT UNDER THE GENERAL MANDATE TO
ISSUE SHARES SOUGHT BY MOST HONG KONG COMPANIES.
GIVEN THAT THE GENERAL MANDATE TO ISSUE SHARES IS
SUBJECT TO ABUSE BY COMPANIES THAT ISSUE SHARES AT
DISCOUNTS TO THE MARKET PRICE, SUCH EXTENSION OF THE
GENERAL SHARE ISSUANCE MANDATE MAY INCREASE THE SCOPE
OF NON-PREEMPTIVE PLACEMENTS, PUTTING MINORITY
SHAREHOLDERS AT A DISADVANTAGE AS REPURCHASED SHARES
MAY ALSO BE REISSUED AT A DISCOUNT TO THE MARKET
PRICE. IN VIEW OF THIS, SHAREHOLDERS ARE RECOMMENDED
TO OPPOSE THIS ITEM UNLESS A MINIMAL DISCOUNT OF 5
PERCENT OR LESS IS SPECIFIED FOR SHARE ISSUANCES
UNDER A GENERAL MANDATE. IN THIS CASE, THE COMPANY
HAS NOT SPECIFIED DISCOUNT LIMITS FOR THE ISSUANCE OF
SHARES WITHOUT PREEMPTIVE RIGHTS. AS SUCH, WE
RECOMMEND SHAREHOLDERS VOTE AGAINST THIS RESOLUTION.
- ----------------------------------------------------------------------------------------------------------------------------------
05/24/07 - A SANDISK CORP. *SNDK* 80004C101 03/27/07 336,510
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Withhold Mgmt
1.1 Elect Director Eli Harari --- Withhold
WE RECOMMEND WITHHOLDING VOTES FROM ALL THE NOMINEES.
WE RECOMMEND THAT SHAREHOLDER WITHHOLD VOTES FROM
INDEPENDENT OUTSIDERS IRWIN FEDERMAN, JAMES D.
MEINDL, CATHERINE P. LEGO, MICHAEL E. MARKS, STEVEN
J. GOMO, EDDY W. HARTENSTEIN, AND INSIDER DR. ELI
HARARI FOR FAILURE TO SUBMIT THE COMPANY'S POISON
PILL TO A SHAREHOLDER VOTE.
1.2 Elect Director Irwin Federman --- Withhold
1.3 Elect Director Steven J. Gomo --- Withhold
1.4 Elect Director Eddy W. Hartenstein --- Withhold
1.5 Elect Director Catherine P. Lego --- Withhold
1.6 Elect Director Michael E. Marks --- Withhold
1.7 Elect Director James D. Meindl --- Withhold
2 Ratify Auditors For For Mgmt
3 Performance-Based Equity Awards Against For ShrHoldr
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 26
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
GIVEN THAT: 1) THE COMPANY'S LONG-TERM EQUITY
COMPENSATION PROGRAM FOR SENIOR EXECUTIVES IS NOT
SIGNIFICANTLY PERFORMANCE-BASED ACCORDING TO ISS'
GUIDELINES; AND 2) THIS PROPOSAL IS NOT OVERLY
RESTRICTIVE; WE BELIEVE THIS ITEM WARRANTS
SHAREHOLDER SUPPORT.
- ----------------------------------------------------------------------------------------------------------------------------------
05/09/07 - A SERVICE CORPORATION 817565104 03/15/07 29,250
INTERNATIONAL *SCI*
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
3 Amend Omnibus Stock Plan For For Mgmt
THE ESTIMATED SHAREHOLDER VALUE TRANSFER OF THE
COMPANY'S PLANS OF 4 PERCENT IS LESS THAN THE
ALLOWABLE CAP FOR THIS COMPANY OF 9 PERCENT.
- ----------------------------------------------------------------------------------------------------------------------------------
06/22/07 - A SHANGHAI PRIME MACHINERY COMPANY Y7687Y103 05/22/07 4,172,451
LTD
- ----------------------------------------------------------------------------------------------------------------------------------
1 Accept Report of the Board For For Mgmt
2 Accept Report of the Supervisory Committee For For Mgmt
3 Accept Financial Statements and Statutory For For Mgmt
Reports
4 Approve Rules of Procedure of Supervisory For For Mgmt
Committee Meetings
THIS ITEM SEEKS APPROVAL FOR THE RULES OF PROCEDURE
OF SUPERVISORY COMMITTEE MEETINGS. THE RULES ARE MADE
PURSUANT TO RELEVANT PEOPLE'S REPUBLIC OF CHINA (PRC)
LAWS AND THE COMPANY'S ARTICLES OF ASSOCIATION. THE
RULES ARE IN RELATION TO THE SUPERVISORY COMMITTEE
AND ITS MEETINGS AND INCLUDE: THE COMPOSITION AND
AUTHORITY OF THE SUPERVISORY COMMITTEE; RULES,
PROCEDURES AND DISCLOSURE OF THE MEETINGS OF THE
SUPERVISORY COMMITTEE; AND THE IMPLEMENTATION OF AND
FEEDBACK ON RESOLUTIONS OF THE SUPERVISORY COMMITTEE.
THIS PROPOSAL IS NOT EXPECTED TO HAVE ANY NEGATIVE
DEMONSTRABLE IMPACT TO SHAREHOLDERS' RIGHTS OR VALUE.
A VOTE IN FAVOR OF THIS ITEM IS RECOMMENDED.
5 Approve Profit Allocation and Dividend For For Mgmt
Recommendation
THIS ITEM SEEKS APPROVAL FOR THE COMPANY'S PROFIT
ALLOCATION AND DIVIDEND RECOMMENDATION FOR THE YEAR
ENDED DEC. 31, 2006. IN ACCORDANCE WITH THE COMPANY
LAW OF THE PEOPLE'S REPUBLIC OF CHINA (PRC) AND THE
ARTICLES OF ASSOCIATION OF THE COMPANY, CERTAIN
PERCENTAGES OF THE COMPANY'S NET PROFIT AFTER
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 27
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
TAX, INCLUDING ITS SUBSIDIARIES AND
JOINTLY-CONTROLLED ENTITIES ARE REQUIRED TO BE
APPROPRIATED TO THE COMPANY'S SURPLUS RESERVE
ACCOUNTS COMPRISING OF THE STATUTORY COMMON RESERVE
AND THE DISCRETIONARY COMMON RESERVE. THIS SURPLUS
RESERVE ACCOUNTS COULD BE USED TO MAKE UP PRIOR
YEAR'S LOSSES OR TO INCREASE SHARE CAPITAL. IN
ADDITION, THE BOARD IS PROPOSING A FIRST AND FINAL
DIVIDEND OF RMB 0.04 ($0.005) PER SHARE. THIS GIVES
THE COMPANY A PAYOUT RATIO OF 21.1 PERCENT. WE USE A
MINIMUM OF 30 PERCENT AND A MAXIMUM OF 100 PERCENT
RATIO AS TRIGGERS FOR FURTHER ANALYSIS. WHEN THE
PAYOUT RATIO FALLS BELOW OUR MINIMUM STANDARD OF 30
PERCENT, WE RECOMMEND A CLOSER ANALYSIS OF THE
ALLOCATION PROPOSAL. AS THE COMPANY HAD ITS INITIAL
PUBLIC OFFERING ON APRIL 27, 2006, WE BELIEVE THAT
THE BOARD IS USING THE COMPANY'S CASH TO REINVEST IN
THE COMPANY FOR GROWTH AND EXPANSION. WE TYPICALLY
GIVE NEWLY LISTED COMPANIES A PERIOD OF FIVE YEARS TO
BRING UP THEIR PAYOUT RATIOS TO MEET OUR GUIDELINES.
GIVEN THAT THE COMPANY IS IN ITS SECOND YEAR AS A
LISTED COMPANY, WE RECOMMEND THAT SHAREHOLDERS
SUPPORT THIS PROPOSAL.
6 Reappoint Ernst & Young Da Hua and Ernst & For For Mgmt
Young as PRC and International Auditors,
Respectively, and Authorize Board to Fix
Their Remuneration
7 Approve Policy on Remuneration of For For Mgmt
Directors and Supervisors and Ratification
of Remunerations Paid to Directors and
Supervisors
THIS CONCERNS THE PROPOSED POLICY ON REMUNERATION OF
DIRECTORS AND SUPERVISORS AND RATIFICATION OF
REMUNERATIONS PAID TO DIRECTORS AND SUPERVISORS.
DIRECTOR AND SUPERVISOR FEES ARE NOT ROUTINELY
DISCLOSED BEFORE THE MEETING IN HONG KONG, BUT PAST
COMPENSATION AMOUNTS ARE DISCLOSED IN THE ANNUAL
REPORT. IN THE LATEST YEAR, REMUNERATION OF DIRECTORS
TOTALED RMB 2.4 MILLION ($313,454), UP FROM RMB 1.5
MILLION ($197,255) THE YEAR BEFORE WHILE REMUNERATION
OF SUPERVISORS TOTALED RMB 524,000 ($67,205), DOWN
FROM RMB 534,000 ($68,488) THE PREVIOUS YEAR. FEES
PAID TO INDEPENDENT NON-EXECUTIVE DIRECTORS AMOUNTED
TO RMB 457,000 ($58,612) IN 2006. IN THE ABSENCE OF
ISSUES CONCERNING THE POLICY AND RATIFICATION OF
REMUNERATIONS OF THE DIRECTORS AND SUPERVISORS AND AS
LONG AS IT IS IN LINE WITH HONG KONG MARKET PRACTICE,
A VOTE IN FAVOR OF THIS RESOLUTION IS RECOMMENDED.
8 Approve Acquisition by Biaowu For For Mgmt
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 28
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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Fasteners High Tensile Fasteners Co. Ltd. of
the Property and the Equipment from Shanghai
Tongqiang Fastener Co. Ltd. for a
Consideration of Approximately RMB 98.0
Million
I. TRANSACTION SUMMARY ACQUIRER: BIAOWU FASTENERS
HIGH TENSILE FASTENERS CO. LTD. (BIAOWU FASTENERS), A
WHOLLY-OWNED SUBSIDIARY OF THE COMPANY TARGET: THE
LAND USE RIGHTS OF THE LAND LOCATED AT NO. 188
YANGNAN ROAD, BAOSHAN DISTRICT, SHANGHAI, THE
PEOPLE'S REPUBLIC OF CHINA (PRC) (PROPERTY)
AND CERTAIN PRODUCTION, ELECTRONIC AND TRANSPORTATION
EQUIPMENT (EQUIPMENT) CONSIDERATION: CASH TRANSACTION
TERMS: BIAOWU FASTENERS WOULD ACQUIRE THE PROPERTY
AND THE EQUIPMENT FROM SHANGHAI TONGQIANG FASTENER
CO. LTD. (SHANGHAI TONGQIANG), AN 84 PERCENT
SUBSIDIARY OF THE COMPANY'S CONTROLLING
SHAREHOLDER, SHANGHAI ELECTRIC (GROUP) CORP. (SEC)
FOR A CASH CONSIDERATION OF APPROXIMATELY RMB 98.0
MILLION ($12.5 MILLION) VALUE OF TRANSACTION: RMB
98.0 MILLION ($12.5 MILLION) PAYABLE BY THE COMPANY
FAIRNESS OPINION: CHINA MERCHANTS SECURITIES (HK)
CO., LTD., THE INDEPENDENT FINANCIAL ADVISER, IS OF
THE VIEW THAT THE TERMS OF THE DEAL AS FAIR AND
REASONABLE AND ARE IN THE INTEREST OF THE COMPANY AND
SHAREHOLDERS AS A WHOLE. ACCOUNTING TREATMENT: NOT
DISCLOSED TAX TREATMENT: NOT DISCLOSED WALKAWAY
RIGHTS/BREAKUP FEE: NOT DISCLOSED DIVIDENDS: NONE II.
TARGET DESCRIPTION THE PROPERTY AND THE EQUIPMENT ARE
CURRENTLY LEASED BY THE COMPANY AND ITS SUBSIDIARIES
(GROUP) FROM SEC FOR PRODUCTION, STORAGE AND OTHER
ANCILLARY USES. THE PROPERTY HAS A TOTAL AREA OF
ABOUT 63,807 SQUARE METERS (SQ.MS.) AND HAS SEVERAL
BUILDINGS ERECTED THEREON WITH A TOTAL FLOOR AREA OF
ABOUT 24,843.5 SQ.MS. III. TRANSACTION BIAOWU
FASTENERS WOULD ACQUIRE THE PROPERTY AND THE
EQUIPMENT FROM SHANGHAI TONGQIANG FOR A CASH
CONSIDERATION OF APPROXIMATELY RMB 98.0 MILLION
($12.5 MILLION). THE CONSIDERATION AMOUNT COMPRISES
APPROXIMATELY RMB 92.1 MILLION ($11.8 MILLION) FOR
THE PROPERTY AND RMB 5.9 MILLION ($7.5 MILLION) FOR
THE EQUIPMENT, WHICH WAS DETERMINED WITH REFERENCE TO
AND ARE APPROXIMATELY EQUIVALENT TO THE RESPECTIVE
APPRAISED VALUE OF THE PROPERTY AND THE EQUIPMENT AS
VALUED BY ORIENT APPRAISAL CO., LTD., A CERTIFIED
VALUER IN THE PRC AS AT JAN 31, 2007. PAYMENT FOR THE
CONSIDERATION WOULD
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Mgmt Rec - Company Management Recommended Vote Page 29
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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BE FUNDED FROM THE PROCEEDS OF THE COMPANY'S
GLOBAL OFFERING IN APRIL 2006 (IPO PROCEEDS). IV.
RATIONALE CONSIDERATIONS (DISCLOSURE LEVEL:
SATISFACTORY) THE GROUP IS PRINCIPALLY ENGAGED IN THE
DESIGN, MANUFACTURE AND SALE OF TURBINE BLADES,
BEARINGS, FASTENERS, CUTTING TOOLS AND ELECTRIC
MOTORS. IT WAS NOTED THAT ONE OF THE DEVELOPMENT
STRATEGIES OF THE GROUP IS TO REFORM AND UPGRADE ITS
LOGISTICS SYSTEMS AND GEAR IT TOWARDS INTERNATIONAL
TRADE. THE PROPOSED ACQUISITION IS IN LINE WITH THIS
STRATEGY AS ACQUIRING THE PROPERTY AND THE EQUIPMENT
IS EXPECTED TO PROVIDE THE GROUP WITH SUFFICIENT LAND
RESERVE TO FACILITATE THE EXPANSION OF THE
GROUP'S WAREHOUSE, DISTRIBUTION CENTRE AND
LOGISTICS SYSTEM. IN ADDITION, THE AMOUNT OF
CONNECTED TRANSACTIONS IS ALSO EXPECTED TO BE REDUCED
FOLLOWING COMPLETION OF THE PROPOSED ACQUISITION. V.
PRO FORMA FINANCIAL SUMMARY AS THE PROPERTY IS
PURCHASED AT A COST SIMILAR TO ITS APPRAISED VALUE
AND GIVEN THAT THE PROPOSED ACQUISITION WOULD BE
FUNDED BY THE IPO PROCEEDS, COMPLETION OF THE
PROPOSED ACQUISITION WOULD NOT HAVE ANY MATERIAL
IMPACTS ON THE COMPANY'S ASSETS AND
LIABILITIES. VI. ISS FINANCIAL VALUATION (DISCLOSURE
LEVEL: SATISFACTORY) GIVEN THAT THE PROPERTY AND THE
EQUIPMENT ARE PRIVATELY HELD, WE CANNOT CONDUCT A
PREMIUMS ANALYSIS. ORIENT APPRAISAL CO., LTD., AN
INDEPENDENT VALUER, HOWEVER, HAS VALUED THE PROPERTY
AT RMB 92.1 MILLION ($11.8 MILLION) AND THE EQUIPMENT
AT RMB 5.9 MILLION ($7.5 MILLION) AS AT JAN. 31,
2007. VII. RISKS THE COMPANY DID NOT DISCLOSE
POSSIBLE RISKS PERTAINING TO THE PROPOSED
ACQUISITION. VIII. MARKET REACTION -PRE-ANNOUNCEMENT:
THE SHARE PRICE DECREASED BY 0.07 PERCENT IN THE 60
DAYS PRIOR TO APRIL 16, 2007, THE DAY ON WHICH THE
COMPANY'S ANNOUNCEMENT WAS POSTED ON THE WEBSITE OF
THE STOCK EXCHANGE OF HONG KONG LTD. (ANNOUNCEMENT
DATE), VERSUS A 0.9 PERCENT INCREASE FOR THE HANG
SENG INDEX (HSI), UNDERPERFORMING THE INDEX BY 0.97
PERCENTAGE POINTS. -INITIAL: THE SHARE PRICE
INCREASED BY 0.6 PERCENT A DAY BEFORE THE
ANNOUNCEMENT DATE, VERSUS A 2.0 PERCENT INCREASE FOR
THE HSI, UNDERPERFORMING THE INDEX BY 1.4 PERCENTAGE
POINTS. -POST-ANNOUNCEMENT: THE SHARE PRICE INCREASED
BY 8.1 PERCENT FROM THE ANNOUNCEMENT DATE TO JUNE 6,
2007, BEING THE DATE OF WRITING OF THIS REPORT,
VERSUS A 0.3 PERCENT INCREASE FOR THE HSI,
OUTPERFORMING THE INDEX BY 7.8 PERCENTAGE POINTS. THE
MARKET'S REACTION TO THIS PROPOSAL APPEARS POSITIVE.
IX. GOVERNANCE (DISCLOSURE LEVEL:
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Mgmt Rec - Company Management Recommended Vote Page 30
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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UNSATISFACTORY) THE COMPANY DID NOT DISCLOSE
GOVERNANCE MATTERS RELATING TO THE PROPOSED
ACQUISITION. X. CONCLUSION BASED ON OUR ANALYSIS, WE
RECOMMEND THAT SHAREHOLDERS VOTE IN FAVOR OF THIS
RESOLUTION.
9 Approve Supplemental Framework Sales For For Mgmt
Agreement
THIS ITEM SEEKS TO APPROVE THE REVISED CAPS AND
EXTEND THE SCOPE TO INCLUDE ASSOCIATES OF THE PARTIES
INVOLVED WITH RESPECT TO CONTINUING CONNECTED
TRANSACTIONS BETWEEN THE COMPANY AND SEC, IN RELATION
TO THE SALE BY THE COMPANY AND ITS ASSOCIATES ON A
NON-EXCLUSIVE BASIS OF CERTAIN PRODUCTS TO SEC AND
ITS ASSOCIATES. UNDER THE AGREEMENT, THE COMPANY AND
ITS ASSOCIATES WOULD SELL CERTAIN TURBINE BLADES,
CUTTING TOOLS AND BRUSHES TO SEC AND ITS ASSOCIATES
FOR A TERM OF TWO YEARS ENDING DEC. 31, 2008, WHICH
IS RENEWABLE AT THE OPTION OF EITHER PARTY FOR A TERM
OF THREE YEARS BY GIVING AT LEAST THREE MONTH'S
NOTICE PRIOR TO THE EXPIRY OF THE TERM. PRICES FOR
THESE GOODS WOULD BE DETERMINED BASED ON: (1) PRICES
AS MAY BE STIPULATED BY THE PRC GOVERNMENT; OR IN THE
ABSENCE OF (1), ON (2) PRICES NOT LOWER THAN ANY
PRICING GUIDELINES OR PRICING RECOMMENDATIONS SET BY
THE PRC GOVERNMENT; OR IN THE ABSENCE OF (1) AND (2),
ON (3) MARKET PRICE; OR IN THE ABSENCE OF (1), (2),
AND (3), ON (4) AN AGREED PRICE CONSISTING OF THE
ACTUAL OR REASONABLE COST INCURRED PLUS A REASONABLE
PROFIT MARGIN. ANNUAL CAPS FOR EACH OF THE TWO YEARS
ENDING DEC. 31, 2008 ARE PROPOSED TO BE REVISED TO
RMB 321.8 MILLION ($41.2 MILLION) AND RMB 390.7
MILLION ($50.0 MILLION), RESPECTIVELY AND WERE
DETERMINED WITH REFERENCE TO THE LATEST MARKET
CONDITIONS, THE EXPECTED INCREASE IN DEMAND BY SEC
AND ITS ASSOCIATES FOR THE SAID PRODUCTS, AND THE
EXPECTED BUSINESS GROWTH OF SEC AND ITS ASSOCIATES.
IT WAS NOTED THAT THE COMPANY HAS ALREADY ENTERED
INTO SUCH TRANSACTIONS WITH SEC EVEN BEFORE ITS
GLOBAL OFFERING ON APRIL 2006. THE CONTINUATION OF
SUCH TRANSACTIONS IS BELIEVED BY THE BOARD TO ENABLE
THE GROUP TO GENERATE ADDITIONAL BUSINESS AND FURTHER
CONTRIBUTE TO ITS REVENUE STREAM. CHINA MERCHANTS
SECURITIES (HK) CO., LTD., THE INDEPENDENT FINANCIAL
ADVISER, IS OF THE VIEW THAT THE TERMS OF THE DEAL
ARE ON NORMAL COMMERCIAL TERMS, IN THE ORDINARY AND
USUAL COURSE OF BUSINESS, FAIR AND REASONABLE, AND
ARE IN THE INTERESTS OF THE COMPANY AND ITS
SUBSIDIARIES AS A WHOLE. THIS IS A REASONABLE
REQUEST.
10 Change Company Address to Room 1501 Floor, For For Mgmt
Jidian Edifice, 600 Heng
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Mgmt Rec - Company Management Recommended Vote Page 31
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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Feng Rd, Shanghai, China
THIS ITEM SEEKS TO APPROVE THE CHANGE IN THE COMPANY
ADDRESS. THIS CHANGE IS NOT EXPECTED TO HAVE ANY
DEMONSTRABLE IMPACT ON SHAREHOLDER RIGHTS OR VALUE.
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01/18/07 - S SHENZHEN INTERNATIONAL HOLDINGS G8086V104 None 8,729,639
(FORMERLY INNOVISIONS HOLDIN
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1 Approve Acquisition by Xin Tong Chan For For Mgmt
Development (Shenzhen) Co Ltd and Yiwan
Industry Development (Shenzhen) Co Ltd of
the 17.8 Percent and 22.2 Percent
Interests, Respectively, in Shenzhen
Western Logistics Co Ltd from Shenzhen
Investment Hldgs Co Ltd
I. TRANSACTION SUMMARY ACQUIRERS: XIN TONG CHAN
DEVELOPMENT (SHENZHEN) CO., LTD. (XTC DEVELOPMENT)
AND YIWAN INDUSTRY DEVELOPMENT (SHENZHEN) CO., LTD.
(YIWAN INDUSTRY), BOTH WHOLLY-OWNED SUBSIDIARIES OF
THE COMPANY TARGET: 17.8 PERCENT AND 22.2 PERCENT
EQUITY INTERESTS IN SHENZHEN WESTERN LOGISTICS CO.,
LTD. (SHENZHEN WESTERN LOGISTICS) CONSIDERATION: CASH
TRANSACTION TERMS: XTC DEVELOPMENT AND YIWAN INDUSTRY
WOULD ACQUIRE THE 17.8 PERCENT AND 22.2 PERCENT
EQUITY INTEREST IN SHENZHEN WESTERN LOGISTICS,
RESPECTIVELY, FROM SHENZHEN INVESTMENT HLDGS. CO.
LTD. (SIHCL), A COMPANY CURRENTLY UNDERGOING A MERGER
WITH SHENZHEN INVESTMENT HLDG. CORP. (SIHC), THE
CONTROLLING SHAREHOLDER OF THE COMPANY, AT AN
AGGREGATE CONSIDERATION OF RMB 230.0 MILLION ($28.5
MILLION) TO BE SATISFIED IN CASH AS TO RMB 102.2
MILLION ($12.7 MILLION) BY XTC DEVELOPMENT AND AS TO
HK$127.8 MILLION ($15.8 MILLION) BY YIWAN INDUSTRY
VALUE OF TRANSACTION: RMB 230.0 MILLION ($28.5
MILLION) FAIRNESS OPINION: SOUTH CHINA CAPITAL LTD.
ACCOUNTING TREATMENT: NOT DISCLOSED TAX TREATMENT:
NOT DISCLOSED WALKAWAY RIGHTS/BREAKUP FEE: NOT
DISCLOSED DIVIDENDS: NONE II. COMPANY DESCRIPTION
SHENZHEN WESTERN LOGISTICS WAS INCORPORATED FOR THE
PURPOSE OF DEVELOPING, CONSTRUCTING, OPERATING, AND
MANAGING ONE OF THE SEVEN LOGISTICS PARKS IN
SHENZHEN, THE WESTERN PORT LOGISTIC PARK. THE WESTERN
LOGISTIC PARK HAS A SITE AREA OF 400,000 SQUARE
METRES AND IS SITUATED IN QIANHAIWAN LOGISTIC
DISTRICT, BEHIND SHENZHEN WESTERN PORT, AND CLOSE TO
THE UNDER-CONSTRUCTION
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Mgmt Rec - Company Management Recommended Vote Page 32
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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DACHAN BAY TERMINAL. IT IS CURRENTLY USED AS AN EMPTY
CONTAINER DEPOT SERVING THE SHENZHEN WESTERN PORT
AREA. III. TRANSACTION UNDER THE PROPOSED
ACQUISITION, XTC DEVELOPMENT AND YIWAN INDUSTRY WOULD
ACQUIRE THE 17.8 PERCENT AND 22.2 PERCENT EQUITY
INTEREST IN SHENZHEN WESTERN LOGISTICS, RESPECTIVELY,
FROM SIHCL AT AN AGGREGATE CONSIDERATION OF RMB 230.0
MILLION ($28.5 MILLION) TO BE SATISFIED IN CASH AS TO
RMB 102.2 MILLION ($12.7 MILLION) BY XTC DEVELOPMENT
AND AS TO HK$127.8 MILLION ($15.8 MILLION) BY YIWAN
INDUSTRY. BASED ON ARM'S LENGTH NEGOTIATIONS
BETWEEN THE PARTIES INVOLVED, THE CONSIDERATION
REPRESENTS A PREMIUM OF APPROXIMATELY 36 PERCENT TO
THE UNAUDITED NET ASSET VALUE OF RMB 169.1 MILLION
($20.9 MILLION) AS AT JUNE 30, 2006. THIS AMOUNT
WOULD BE SETTLED BY CASH FROM THE INTERNAL RESOURCES
OF THE COMPANY, ITS SUBSIDIARIES, JOINTLY CONTROLLED
ENTITIES AND ASSOCIATED COMPANIES (GROUP). UPON
COMPLETION OF THE PROPOSED ACQUISITION, THE
GROUP'S INTEREST IN SHENZHEN WESTERN LOGISTICS
WOULD INCREASE FROM 20 PERCENT TO 60 PERCENT AND
SHENZHEN WESTERN LOGISTICS WOULD BECOME A SUBSIDIARY
OF THE COMPANY. IV. RATIONALE CONSIDERATIONS
(DISCLOSURE LEVEL: SATISFACTORY) IN THIS CASE, THE
COMPANY PROVIDED SATISFACTORY INFORMATION REGARDING
THE PROPOSED ACQUISITION. THE PROPOSED ACQUISITION IS
IN LINE WITH THE OVERALL STRATEGIC OBJECTIVES OF THE
GROUP IN INVESTING IN QUALITY LOGISTICS RELATED
BUSINESS AND INFRASTRUCTURE PROJECTS WITH A
CONTROLLING STAKE. IT WAS NOTED THAT AMONG THE SEVEN
LOGISTIC PARKS IN SHENZHEN, THE COMPANY ALREADY HAS
CONTROLLING INTEREST IN SOUTH-CHINA INTERNATIONAL
LOGISTICS CENTRE AND HAS A JOINT CONTROL OVER THE
AIRPORT INTERNATIONAL EXPRESS SUPERVISION CENTER,
WHICH IS A KEY PROJECT IN THE AIRPORT LOGISTICS
DISTRICT. ACQUIRING A SIGNIFICANT PORTION AND
INCREASING ITS INTEREST IN SHENZHEN WESTERN LOGISTICS
IS EXPECTED TO PROVIDE THE COMPANY WITH AN ADDITIONAL
VALUABLE RESOURCE IN SHENZHEN OWING TO THE 400,000
SQUARE METERS LAND AREA AT WESTERN PORT LOGISTIC
PARK, WHICH IS IN CLOSE PROXIMITY TO THE SHENZHEN
WESTERN PORT AND THE FIRST EXIT OF THE SHENZHEN-HONG
KONG WESTERN CORRIDOR. THE PROPOSED ACQUISITION WOULD
ALSO ENABLE THE COMPANY TO HAVE CONTROL OVER SHENZHEN
WESTERN LOGISTICS, WHICH WOULD, TOGETHER WITH ITS
INTERESTS IN OTHER LOGISTIC PARKS CREATE A TRIPOD OF
LOGISTIC INFRASTRUCTURE COVERING SHENZHEN-HONG KONG
BOUNDARY CONTROL POINTS, PORT AND AIRPORT THEREBY
RESULTING TO STRATEGIC SYNERGIES. V. PRO FORMA
FINANCIAL SUMMARY THE COMPANY DID NOT
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Mgmt Rec - Company Management Recommended Vote Page 33
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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DISCLOSE INFORMATION REGARDING ITS PRO FORMA SUMMARY
IN RELATION TO THE ACQUISITION OF SHENZHEN WESTERN
LOGISTICS. VI. RISKS THE COMPANY DID NOT DISCLOSE
POSSIBLE RISKS PERTAINING TO THE ACQUISITION OF
SHENZHEN WESTERN LOGISTICS. VII. MARKET REACTION (VS.
MARKET INDEX DURING SAME PERIOD) -PRE-ANNOUNCEMENT:
THE SHARE PRICE INCREASED BY 54.3 PERCENT IN THE 60
DAYS PRIOR TO DEC. 13, 2006 (THE ANNOUNCEMENT DATE)
VS. A 4.0 PERCENT INCREASE FOR THE HSI, OUTPERFORMING
THE INDEX BY 50.3 PERCENTAGE POINTS -INITIAL: THE
SHARE PRICE DECREASED BY 1.8 PERCENT A DAY BEFORE THE
ANNOUNCEMENT DATE, VS. A 1.0 PERCENT DECLINE FOR THE
HSI, UNDERPERFORMING THE INDEX BY 0.8 PERCENTAGE
POINTS -POST-ANALYSIS: THE SHARES DECREASED BY 5.5
PERCENT FROM THE ANNOUNCEMENT DATE TO JAN. 4, 2006,
VS. AN 8.1 PERCENT INCREASE FOR THE HSI,
UNDERPERFORMING THE INDEX BY 13.6 PERCENTAGE POINTS -
WE NOTE THAT THE COMPANY'S SHARE PRICE HAS
BEEN SLIGHTLY INCREASING PRIOR TO THE RELEASE OF THE
ANNOUNCEMENT PERTAINING TO THE PROPOSED ACQUISITION
BEFORE IT DROPPED BACK TO POST ANNOUNCEMENT PRICES
VIII. GOVERNANCE (DISCLOSURE LEVEL: UNSATISFACTORY)
THE COMPANY DID NOT DISCLOSE GOVERNANCE MATTERS
RELATING TO THE ACQUISITION OF SHENZHEN WESTERN
LOGISTICS. IX. CONCLUSION BASED ON OUR ANALYSIS, WE
RECOMMEND THAT SHAREHOLDERS VOTE IN FAVOR OF THIS
RESOLUTION.
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06/29/07 - A SINA CORP. (FORMERLY SINA.COM) G81477104 05/14/07 2,940
*SINA*
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1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
3 APPROVAL OF THE 2007 SHARE INCENTIVE PLAN For For Mgmt
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05/02/07 - S SINGAPORE EXCHANGE LTD. Y79946102 None 3,773,508
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1 Approve Disposal by Singapore Exchange For For Mgmt
Securities Trading Ltd., Singapore
Exchange Derivatives Trading Ltd. and The
Central Depository (Pte) Ltd. of the SGX
Premises to United Overseas Bank Ltd. for
an Aggregate Purchase Price of SGD 271.0
Million
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Mgmt Rec - Company Management Recommended Vote Page 34
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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06/14/07 - A SUPERGEN, INC. *SUPG* 868059106 04/26/07 284,415
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1 Elect Directors For Split Mgmt
1.1 Elect Director James S.J. Manuso, --- For
WE RECOMMEND A VOTE FOR THE DIRECTORS WITH THE
EXCEPTION OF INDEPENDENT OUTSIDER THOMAS V. GIRARDI.
WE RECOMMEND THAT SHAREHOLDERS WITHHOLD VOTES FROM
THOMAS V. GIRARDI FOR POOR ATTENDANCE.
1.2 Elect Director Charles J. Casamento, ---
For
1.3 Elect Director Thomas V. Girardi, ---
Withhold
1.4 Elect Director Allan R. Goldberg, --- For
1.5 Elect Director Walter J. Lack, --- For
1.6 Elect Director Michael D. Young --- For
2 Ratify Auditors For For Mgmt
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10/17/06 - A SYNAPTICS, INC. *SYNA* 87157D109 09/01/06 64,960
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1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
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05/17/07 - A TESSERA TECHNOLOGIES, INC. 88164L100 03/26/07 25,600
*TSRA*
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1 Elect Directors For Split Mgmt
1.1 Elect Director Robert J. Boehlke --- For
WE RECOMMEND A VOTE FOR THE DIRECTORS WITH THE
EXCEPTION OF INDEPENDENT OUTSIDER JOHN B. GOODRICH.
WE RECOMMEND THAT SHAREHOLDERS WITHHOLD VOTES FROM
JOHN B. GOODRICH FOR POOR ATTENDANCE.
1.2 Elect Director John B. Goodrich ---
Withhold
1.3 Elect Director Al S. Joseph, Ph.D. --- For
1.4 Elect Director Bruce M. McWilliams, Ph.D.
--- For
1.5 Elect Director David C. Nagel, Ph.D. ---
For
1.6 Elect Director Henry R. Nothhaft --- For
1.7 Elect Director Robert A. Young, Ph.D. ---
For
2 Approve Executive Incentive Bonus Plan For For Mgmt
THE PERFORMANCE MEASURES INCLUDED UNDER THE PLAN ARE
APPROPRIATE FOR THE COMPANY GIVEN ITS LINE OF
BUSINESS, LONG-TERM STRATEGIC OBJECTIVES, AND
INDUSTRY-SPECIFIC MEASURES FOR ASSESSING MARKET
COMPETITIVENESS. ADDITIONALLY, THE PLAN IS
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Mgmt Rec - Company Management Recommended Vote Page 35
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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ADMINISTERED BY A COMMITTEE OF INDEPENDENT OUTSIDERS
WHO MUST CERTIFY ATTAINMENT OF THESE OBJECTIVE,
MEASURABLE PERFORMANCE GOALS BEFORE CASH AWARDS ARE
PAID TO PARTICIPANTS. MOREOVER, PRESERVATION OF THE
FULL DEDUCTIBILITY OF ALL COMPENSATION PAID REDUCES
THE COMPANY'S CORPORATE TAX OBLIGATION.
3 Ratify Auditors For For Mgmt
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04/19/07 - A TEXAS INSTRUMENTS INC. *TXN* 882508104 02/20/07 159,450
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1 Elect Director James R. Adams For For Mgmt
THEREFORE, IN LIGHT OF THE COMPANY'S NEGATIVE
STOCK PERFORMANCE, ISS BELIEVES THAT THERE IS A
DISCONNECT BETWEEN PAY AND PERFORMANCE AND RECOMMENDS
A VOTE AGAINST ALL OF THE DIRECTOR NOMINEES WHO
CURRENTLY SIT ON THE COMPENSATION COMMITTEE. WE
RECOMMEND THAT SHAREHOLDERS VOTE AGAINST COMPENSATION
COMMITTEE MEMBERS DANIEL A. CARP, RUTH J. SIMMONS AND
CHRISTINE TODD WHITMAN FOR THE DISCONNECT BETWEEN
COMPANY'S STOCK PERFORMANCE AND THE CEO'S
COMPENSATION.
2 Elect Director David L. Boren For For Mgmt
3 Elect Director Daniel A. Carp For Against Mgmt
4 Elect Director Carrie S. Cox For For Mgmt
5 Elect Director Thomas J. Engibous For For Mgmt
6 Elect Director David R. Goode For For Mgmt
7 Elect Director Pamela H. Patsley For For Mgmt
8 Elect Director Wayne R. Sanders For For Mgmt
9 Elect Director Ruth J. Simmons For Against Mgmt
10 Elect Director Richard K. Templeton For For Mgmt
11 Elect Director Christine Todd Whitman For Against Mgmt
12 Ratify Auditors For For Mgmt
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05/25/07 - A TIANJIN DEVELOPMENT HOLDINGS LTD Y8822M103 05/21/07 6,292,763
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1 Accept Financial Statements and Statutory For For Mgmt
Reports
2 Approve Final Dividend For For Mgmt
3a Reelect Wang Guanghao as Director For For Mgmt
3b Reelect Nie Jiansheng as Director For For Mgmt
3c Reelect Dai Yan as Director For For Mgmt
3d Reelect Hu Chengli as Director For For Mgmt
3e Reelect Zong Guoying as Director For For Mgmt
3f Reelect Zheng Daoquan as Director For For Mgmt
3g Reelect Lau Wai Kit as Director For For Mgmt
3h Reelect Kwong Che Keung, Gordon as Director For For Mgmt
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Mgmt Rec - Company Management Recommended Vote Page 36
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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3i Reelect Cheng Hon Kwan as Director For For Mgmt
3j Authorize Board to Fix the Remuneration of For For Mgmt
Directors
4 Reappoint Independent Auditor and For For Mgmt
Authorize Board to Fix The Remuneration of
the Independent Auditor
5a Authorize Repurchase of Up to 10 Percent For For Mgmt
of Issued Share Capital
5b Approve Issuance of Equity or For Against Mgmt
Equity-Linked Securities without
Preemptive Rights
IN THIS CASE, THE COMPANY DID NOT PROVIDE DISCOUNT
RESTRICTIONS ON THE ISSUE PRICE OF SHARES UNDER THIS
MANDATE. GIVEN THIS AND CONSIDERING THAT THE MANDATE
MAY BE REFRESHED SEVERAL TIMES WITHIN A PERIOD OF ONE
YEAR, WE RECOMMEND SHAREHOLDERS OPPOSE THIS
RESOLUTION.
5c Authorize Reissuance of Repurchased Shares For Against Mgmt
IN THIS CASE, THE COMPANY HAS NOT SPECIFIED DISCOUNT
LIMITS FOR THE ISSUANCE OF SHARES WITHOUT PREEMPTIVE
RIGHTS. AS SUCH, WE RECOMMEND SHAREHOLDERS VOTE
AGAINST THIS RESOLUTION.
5d Approve New Share Option Scheme and For Against Mgmt
Terminate the Existing Share Option Scheme
of the Company
GIVEN THE UNFAVORABLE TERMS OF THE PROPOSED PLAN, WE
RECOMMEND THAT SHAREHOLDERS VOTE AGAINST THIS
PROPOSAL.
6 Amend Articles Re: Entitlement to Receive For For Mgmt
Share Certificates, Editing Changes,
Appointment and Retirement by Rotation of
Directors
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05/25/07 - S TIANJIN DEVELOPMENT HOLDINGS LTD Y8822M103 None 6,292,763
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1 Approve Water Services Framework For For Mgmt
Agreement, Communications Services
Framework Agreement, Electricity Services
Framework Agreement and Existing
Continuing Connected Transactions and
Revised Annual Caps
2 Approve EDI Services Framework Agreement, For For Mgmt
Container Reconfiguration Storage Services
Framework Agreement, Labour Services
Framework Agreement and New Continuing
Connected Transactions
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Mgmt Rec - Company Management Recommended Vote Page 37
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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and Annual Caps
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09/25/06 - A/S UBISOFT ENTERTAINMENT (FORMERLY F9396N106 None 78,996
UBI SOFT ENTERTAINMENT)
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ORDINARY BUSINESS
1 Approve Financial Statements and Statutory For For Mgmt
Reports
2 Approve Treatment of Losses For For Mgmt
3 Accept Consolidated Financial Statements For For Mgmt
and Statutory Reports
4 Approve Special Auditors' Report Regarding For For Mgmt
Related-Party Transactions
5 Ratify Appointment of Marc Fiorentino as For For Mgmt
Director
6 Approve Remuneration of Directors in the For For Mgmt
Aggregate Amount of EUR 250,000
7 Authorize Repurchase of Up to Ten Percent For For Mgmt
of Issued Share Capital
8 Authorize Filling of Required For For Mgmt
Documents/Other Formalities
SPECIAL BUSINESS
9 Approve Employee Savings-Related Share For For Mgmt
Purchase Plan
10 Approve Stock Option Plans Grants For Against Mgmt
THE PLAN DOES NOT CONTAIN SOME OF THE KEY ELEMENTS
THAT WE FAVOR IN A STANDARD FRENCH EXECUTIVE STOCK
OPTION PLAN. AS A MATTER OF FACT, THE COMPANY'S BOARD
DOES NOT MAINTAIN A REMUNERATION COMMITTEE AND THE
PLAN IS ADMINISTERED BY THE FULL BOARD OF DIRECTORS,
INCLUDING EXECUTIVES. ISS OPPOSES ALLOWING THE
ADMINISTERING COMMITTEE TO GRANT OPTIONS TO ITSELF
DUE TO THE POTENTIAL FOR ABUSE AND CONFLICTS OF
INTEREST. THEREFORE, ADMINISTRATION OF PLANS SHOULD
BE IN THE HANDS OF DIRECTORS WHO ARE UNABLE TO
PARTICIPATE IN THE PLAN. FURTHERMORE, THE TOTAL
NUMBER OF SHARES RESERVED FOR THE COMPANY'S STOCK
OPTION PLANS EXCEEDS OUR RECOMMENDED GUIDELINES.
THOSE GUIDELINES PROVIDE THAT SHARES RESERVED FOR ALL
SHARE OPTIONS PLANS MAY NOT EXCEED BETWEEN 5 AND 10
PERCENT OF COMPANY'S ISSUED SHARE CAPITAL. THEREFORE,
WE DO NOT RECOMMEND SUPPORTING THIS PLAN.
11 Approve Capital Increase Reserved for For For Mgmt
Employees of Foreign Subsidiaries
Participating in Savings-Related Share
Purchase Plan
12 Authorize Capital Increase of up to 10 For For Mgmt
Percent of Issued Capital for Future
Acquisitions
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 38
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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13 Authorize Issuance of Equity or For For Mgmt
Equity-Linked Securities with Preemptive
Rights up to Aggregate Nominal Amount of
EUR 2 Million
14 Authorize Issuance of Equity or For Against Mgmt
Equity-Linked Securities without
Preemptive Rights up to Aggregate Nominal
Amount of EUR 2 Million
HOWEVER, A POTENTIAL INCREASE OF 33 PERCENT OF ISSUED
CAPITAL WITHOUT PREEMPTIVE RIGHTS EXCEEDS THE LIMIT
RECOMMENDED BY OUR GUIDELINES FOR GENERAL REQUESTS TO
ISSUE CAPITAL WITHOUT PREEMPTIVE RIGHTS.
15 Set Global Limit for Capital Increase to For For Mgmt
Result from All Issuance Requests at EUR 4
Million
WE APPROVE OF GLOBAL LIMITS BECAUSE THEY FACILITATE
AN ACCURATE CALCULATION OF POTENTIAL DILUTION TO
EXISTING SHAREHOLDERS' INTERESTS. WHILE THIS AMOUNT
IS REASONABLE FOR ISSUANCES THAT RESPECT PREEMPTIVE
RIGHTS, IT IS TOO LARGE FOR THOSE THAT DO NOT RESPECT
PREEMPTIVE RIGHTS. HOWEVER, IT IS IMPORTANT THAT
SHAREHOLDERS APPROVE THIS ITEM BECAUSE WITHOUT IT,
THE ABOVE AMOUNTS REQUESTED UNDER THE VARIOUS
ISSUANCE AUTHORITIES COULD BE IN ADDITION TO EACH
OTHER (FOR ONLY THE ISSUANCES WITH PREEMPTIVE RIGHTS,
THIS COULD AMOUNT TO A POTENTIAL INCREASE OF NEARLY
33 PERCENT, WHICH WOULD BE DOUBLED IF THE ISSUANCE
REQUEST WITHOUT PREEMPTIVE RIGHTS WAS ALSO APPROVED).
BY APPROVING THIS ITEM, SHAREHOLDERS ARE PROTECTED
FROM EXCESSIVE DILUTION.
16 Approve Reduction in Share Capital via For For Mgmt
Cancellation of Repurchased Shares
THE AMOUNT OF CAPITAL THAT MAY BE CANCELLED IS
LIMITED TO 10 PERCENT IN ANY 24-MONTH PERIOD.
17 Eliminate Par Value of Common Stock For For Mgmt
18 Approve 1 for 2 Stock Split For For Mgmt
19 Authorize Filling of Required For For Mgmt
Documents/Other Formalities
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06/14/07 - A UEM WORLD BHD (FRMLY RENONG Y9035N102 None 2,135,234
BERHAD)
- ----------------------------------------------------------------------------------------------------------------------------------
1 Approve Final Dividend of MYR 0.01 Per For For Mgmt
Share Tax Exempt and MYR 0.005 Per Share
Less 27 Percent Tax for the Financial Year
Ended Dec. 31, 2006
2 Elect Ahmad Pardas Senin as Director For For Mgmt
3 Elect Oh Kim Sun as Director For For Mgmt
4 Elect Ahmad Tajuddin Ali as Director For For Mgmt
5 Elect Ir Abdul Rahim Abu Bakar as For For Mgmt
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 39
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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Director
6 Approve Remuneration of Directors for the For For Mgmt
Financial Year Ended Dec. 31, 2006
7 Approve Ernst & Young as Auditors and For For Mgmt
Authorize Board to Fix Their Remuneration
8 Approve Issuance of Equity or For For Mgmt
Equity-Linked Securities without
Preemptive Rights in Any Amount Up to 10
Percent of Issued Share Capital
9 Approve Implementation of Shareholders' For For Mgmt
Mandate for Recurrent Related Party
Transactions as Set Out in Section 2.2 of
the Circular to Shareholders Dated May 10,
2007
10 Approve Implementation of Shareholders' For For Mgmt
Mandate for Recurrent Related Party
Transactions as Set Out in Section 2.3 of
the Circular to Shareholders Dated May 10,
2007
- ----------------------------------------------------------------------------------------------------------------------------------
03/15/07 - A/S VIVO PARTICIPACOES SA (FRMLY 92855S101 02/23/07 579,770
TELESP CELULAR PARTICIPACOES)
- ----------------------------------------------------------------------------------------------------------------------------------
MEETING FOR HOLDERS OF ADR'S - ORDINARY
BUSINESS
1 Accept Financial Statements and Statutory For For Mgmt
Reports for Fiscal Year Ended Dec 31 2006
2 Approve Allocation of Income and Dividends For For Mgmt
3 Approve 2007 Capital Budget For For Mgmt
4 Elect Supervisory Board Members For For Mgmt
5 Approve Global Remuneration of Board of For For Mgmt
Directors and Individual Remuneration of
Supervisory Board Members
SPECIAL BUSINESS
6 Amend Article 5 Re: Ratify Capital For For Mgmt
Increases as Approved at Board Meeting
Held on Jun 8 2006
7 Ratify the election of Manoel Luiz Ferrao For For Mgmt
de Amorim, Rui Manuel de Medeiros
D'Espiney Patricio and Joao Pedro Amadeu
Baptista to the Board of Directors
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 40
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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03/19/07 - S WILMAR INTERNATIONAL LTD (FRMLY Y9586L109 None 3,275,670
EZYHEALTH ASIA PACIFIC LTD)
- ----------------------------------------------------------------------------------------------------------------------------------
1 Approve Acquisition of All the Issued For For Mgmt
Ordinary Shares in PBB Oil Palms Bhd not
Owned by the Company and Allotment and
Issuance of Up to 1.0 Billion Ordinary
Shares in the Capital of the Company as
Consideration
- ----------------------------------------------------------------------------------------------------------------------------------
04/26/07 - S WILMAR INTERNATIONAL LTD (FRMLY Y9586L109 None 3,275,670
EZYHEALTH ASIA PACIFIC LTD)
- ----------------------------------------------------------------------------------------------------------------------------------
1 Approve KOG Acquisition and Proposed Issue For For Mgmt
of KOG Consideration Shares
2 Approve PGEO Acquisition and Proposed For For Mgmt
Issue of PGEO Consideration Shares
- ----------------------------------------------------------------------------------------------------------------------------------
04/26/07 - A WILMAR INTERNATIONAL LTD (FRMLY Y9586L109 None 3,275,670
EZYHEALTH ASIA PACIFIC LTD)
- ----------------------------------------------------------------------------------------------------------------------------------
1 Adopt Financial Statements and Directors' For For Mgmt
and Auditors' Reports
2 Approve Directors' Fees of SGD 150,000 for For For Mgmt
the Year Ended Dec. 31, 2006
3 Reelect Leong Horn Kee as Director For For Mgmt
4 Reelect Martua Sitorus as Director For For Mgmt
5 Reelect Teo Kim Yong as Director For For Mgmt
6 Reelect Yeo Teng Yang as Director For For Mgmt
7 Reelect Tay Kah Chye as Director For For Mgmt
8 Reelect Kwah Thiam Hock as Director For For Mgmt
9 Reelect William Henry Camp as Director For For Mgmt
10 Reappoint Ernst & Young as Auditors and For For Mgmt
Authorize Board to Fix Their Remuneration
11 Approve Mandate for Transactions with For For Mgmt
Related Parties
12 Approve Issuance of Shares without For For Mgmt
Preemptive Rights
13 Approve Issuance of Shares and Grant For Against Mgmt
Options Pursuant to the Executives' Share
Option Scheme of the Company
IN THIS CASE, THE PERCENTAGE OF SHARES AVAILABLE
UNDER THE ESOS IS 15 PERCENT OF ISSUED CAPITAL, FROM
TIME TO TIME, WHICH IS CONSIDERED AN UNACCEPTABLE
LEVEL OF
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 41
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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DILUTION. THIS SCHEME CANNOT BE CONSIDERED
SUFFICIENTLY WELL STRUCTURED TO JUSTIFY A POTENTIAL
DILUTION LEVEL OF 15 PERCENT. MOREOVER, THE PLAN
ALLOWS FOR THE GRANT OF OPTIONS TO EXECUTIVES AT A
DISCOUNT TO MARKET PRICES, WHICH UNDERMINES THE
INCENTIVE IMPACT OF THE PLAN.
- ----------------------------------------------------------------------------------------------------------------------------------
06/08/07 - A XIAMEN INTERNATIONAL PORT Y97186103 06/07/07 579,764
CO., LTD
- ----------------------------------------------------------------------------------------------------------------------------------
1 Accept Report of the Board of Directors For For Mgmt
2 Accept Report of the Supervisory Committee For For Mgmt
3 Accept Financial Statements and Statutory For For Mgmt
Reports
4 Approve Profit Distribution Plan and Final For For Mgmt
Dividend of RMB 0.065 Per Share
THIS ITEM SEEKS SHAREHOLDER APPROVAL FOR THE PROFIT
DISTRIBUTION PLAN AND FINAL DIVIDEND OF THE COMPANY
FOR FINANCIAL YEAR 2006. ACCOUNTING REGULATIONS IN
THE PEOPLE'S REPUBLIC OF CHINA (PRC) AND THE
ARTICLES OF ASSOCIATION OF THE COMPANY REQUIRES THAT
10 PERCENT OF THE STATUTORY NET PROFIT FOR THE YEAR
BE APPROPRIATED TO THE STATUTORY SURPLUS RESERVE. THE
RESERVE FUND COULD REACH AS MUCH AS 50 PERCENT OF THE
COMPANY'S SHARE CAPITAL AND ANY FURTHER
APPROPRIATIONS BECOMES OPTIONAL. SUCH FUND COULD BE
USED TO MAKE UP PRIOR YEAR'S LOSSES OR FOR THE
ISSUANCE OF BONUS SHARES, PROVIDED THAT AFTER SUCH
ISSUANCE, THE RESERVE FUND IS MAINATINED AT 25
PERCENT OF THE SHARE CAPITAL. THE BOARD IS ALSO
PROPOSING A FIRST AND FINAL DIVIDEND OF RMB 0.065
($0.008) PER SHARE. THIS GIVES THE COMPANY A PAYOUT
RATIO OF 63.0 PERCENT. NO DIVIDENDS WERE DECLARED FOR
THE YEAR 2005. THIS IS A COMMON REQUEST FOR COMPANIES
INCORPORATED IN THE PEOPLE'S REPUBLIC OF CHINA. A
VOTE IN FAVOR OF THIS REQUEST IS RECOMMENDED.
5 Reappoint PricewaterhouseCoopers Zhong For For Mgmt
Tian Certified Public Accountant Co., Ltd.
and PricewaterhouseCoopers Certified
Public Accountants, Hong Kong as the PRC
and International Auditors and Authorize
Board to Fix Their Remuneration
6 Approve the Remuneration of Directors and For For Mgmt
Supervisors
7 Elect Hong Lijuan as Executive Director For For Mgmt
8 Approve Issuance of Equity or For Against Mgmt
Equity-Linked Securities without
Preemptive Rights
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 42
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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THIS ITEM SEEKS TO REFRESH THE COMPANY'S MANDATE TO
ISSUE DOMESTIC OR H SHARES, REPRESENTING UP TO 20
PERCENT OF CURRENT ISSUED DOMESTIC AND H SHARE
CAPITAL, WITHOUT PREEMPTIVE RIGHTS. THE GENERAL
MANDATE TO ISSUE SHARES IS SUPPORTED FOR COMPANIES
THAT LIMIT DISCOUNTS TO 5 PERCENT OF THE MARKET PRICE
OF SHARES AND WHO, AT THE SAME TIME, HAVE NO HISTORY
OF REFRESHMENTS AS THESE FACTORS ADDRESS CONCERNS ON
THE POSSIBLE ISSUANCE OF DISCOUNTED SHARES TO RELATED
PARTIES AS WELL AS FURTHER DILUTION TO EXISTING
SHAREHOLDERS DUE TO FREQUENT REFRESHMENTS. IN THIS
CASE, THE COMPANY DID NOT PROVIDE DISCOUNT
RESTRICTIONS ON THE ISSUE PRICE OF DOMESTIC AND H
SHARES UNDER THIS MANDATE. GIVEN THIS AND CONSIDERING
THAT THE MANDATE MAY BE REFRESHED SEVERAL TIMES
WITHIN A PERIOD OF ONE YEAR, WE RECOMMEND
SHAREHOLDERS OPPOSE THIS RESOLUTION.
9 Amend Articles of Association For For Mgmt
THIS ITEM SEEKS TO AMEND THE COMPANY'S ARTICLES OF
ASSOCIATION TO REFLECT CERTAIN CHANGES REGARDING THE
HOLDERS OF DOMESTIC SHARES AFTER THE CONVERSION OF
XIAMEN PORT GROUP COMPANY INTO XIAMEN INTERNATIONAL
PORT CO., LTD. THE AMENDED ARTICLES INCLUDE THAT THE
COMPANY'S CURRENT SHARE CAPITAL IS 2,726,200,000
ORDINARY SHARES CONSISTING OF 1,739,500,000 DOMESTIC
SHARES AND 986,700,000 H SHARES, REPRESENTING 63.8
PERCENT AND 36.2 PERCENT OF THE TOTAL SHARE CAPITAL
RESPECTIVELY. A TOTAL OF 1,756,000,000 DOMESTIC
SHARES WERE ISSUED TO THE PROMOTER OF THE COMPANY,
XIAMEN PORT HLDG. GROUP CO., LTD., IN WHICH
1,666,300,000 SHARES ARE STILL HELD AFTER 89,700,000
SHARES WERE SOLD BY THE PROMOTER. THE REMAINING
73,200,000 DOMESTIC SHARES ARE HELD BY XIAMEN
INTERNATIONAL AIRPORT GROUP CO., LTD., XIAMEN ROAD
AND BRIDGE CONSTRUCTION GROUP CO., LTD., XIAMEN
SEASHINE GROUP CO., LTD. AND XIAMEN LIGHT INDUSTRY
GROUP CO., LTD. WITH 18,300,000 SHARES EACH. THIS
ITEM IS NOT EXPECTED TO HAVE ANY NEGATIVE IMPACT ON
SHAREHOLDER RIGHTS AND VALUES. AS SUCH, A VOTE IN
FAVOR OF THIS RESOLUTION IS RECOMMENDED.
10 Other Business (Voting) For Against Mgmt
THIS ROUTINE ITEM WOULD ALLOW OTHER ISSUES OF
CONCERN, NOT CONTAINED IN THE COMPANY'S
OFFICIAL AGENDA, TO BE RAISED AT THE ANNUAL GENERAL
MEETING WITHOUT GIVING SHAREHOLDERS AMPLE TIME TO
REVIEW THEIR DETAILS. CONSEQUENTLY, THIS WOULD CREATE
AN OPPORTUNITY TO PASS RESOLUTIONS NOT IN THE BEST
INTEREST OF THE SHAREHOLDERS. IN VIEW OF THIS, WE
RECOMMEND A VOTE AGAINST THIS ITEM UNTIL DETAILS ON
THE ISSUES HAVE
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 43
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
BEEN PROVIDED.
- ----------------------------------------------------------------------------------------------------------------------------------
05/11/07 - A XINYI GLASS HOLDINGS LTD G9828G108 None 2,776,752
- ----------------------------------------------------------------------------------------------------------------------------------
1 Accept Financial Statements and Statutory For For Mgmt
Reports
2 Declare a Final Dividend of HK$0.07 Per For For Mgmt
Share
A FINAL DIVIDEND OF HK$0.07 ($0.009) IS BEING
PROPOSED. INCLUDING THE INTERIM DIVIDEND, THIS WILL
GIVE THE COMPANY A FULL YEAR DIVIDEND DISTRIBUTION OF
HK$0.11 ($0.014) PER SHARE.
3a1 Reelect Lee Shing Put as Executive Director For For Mgmt
3a2 Reelect Lee Yau Ching as Executive Director For For Mgmt
3a3 Reelect Li Man Yin as Executive Director For For Mgmt
3a4 Reelect Wong Chat Chor Samuel as For For Mgmt
Independent Non-Executive Director
3b Authorize Board to Fix Remuneration of For For Mgmt
Directors
4 Reappoint Auditors and Authorize Board to For For Mgmt
Fix Their Remuneration
PRICEWATERHOUSECOOPERS IS BEING PROPOSED TO BE
REAPPOINTED AS THE COMPANY'S EXTERNAL AUDITORS.
5a Authorize Repurchase of Up to 10 Percent For For Mgmt
of Issued Share Capital
THIS AUTHORITY IS LIMITED TO 10 PERCENT OF THE
OUTSTANDING SHARE CAPITAL OF THE COMPANY ON THE DATE
THE RESOLUTION IS PASSED AND OPERATES UNDER STRICT
REGULATORY GUIDELINES OF THE SEHK. WE BELIEVE THAT
WHEN TIMED CORRECTLY, CORPORATE STOCK REPURCHASES ARE
A LEGITIMATE USE OF CORPORATE FUNDS AND CAN ADD TO
LONG-TERM SHAREHOLDER RETURNS.
5b Approve Issuance of Equity or For Against Mgmt
Equity-Linked Securities without
Preemptive Rights
THIS ITEM SEEKS TO REFRESH THE COMPANY'S MANDATE TO
ISSUE SHARES, REPRESENTING UP TO 20 PERCENT OF
CURRENT ISSUED CAPITAL, WITHOUT PREEMPTIVE RIGHTS.
THE GENERAL MANDATE TO ISSUE SHARES IS SUPPORTED FOR
COMPANIES THAT LIMIT DISCOUNTS TO 5 PERCENT OF THE
MARKET PRICE OF SHARES AND WHO, AT THE SAME TIME,
HAVE NO HISTORY OF REFRESHMENTS AS THESE FACTORS
ADDRESS CONCERNS ON THE POSSIBLE ISSUANCE OF
DISCOUNTED SHARES TO RELATED PARTIES AS WELL AS
FURTHER DILUTION TO EXISTING SHAREHOLDERS DUE TO
FREQUENT REFRESHMENTS. IN THIS
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 44
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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CASE, THE COMPANY DID NOT PROVIDE DISCOUNT
RESTRICTIONS ON THE ISSUE PRICE OF SHARES UNDER THIS
MANDATE. GIVEN THIS AND CONSIDERING THAT THE MANDATE
MAY BE REFRESHED SEVERAL TIMES WITHIN A PERIOD OF ONE
YEAR, WE RECOMMEND SHAREHOLDERS OPPOSE THIS
RESOLUTION.
5c Authorize Reissuance of Repurchased Shares For Against Mgmt
THIS MANDATE EFFECTIVELY INCREASES THE NUMBER OF
SHARES THAT MAY BE ISSUED WITHOUT PREEMPTIVE RIGHTS
TO 30 PERCENT OF ISSUED CAPITAL FROM THE ORIGINAL
LIMIT OF 20 PERCENT UNDER THE GENERAL MANDATE TO
ISSUE SHARES SOUGHT BY MOST HONG KONG COMPANIES.
GIVEN THAT THE GENERAL MANDATE TO ISSUE SHARES IS
SUBJECT TO ABUSE BY COMPANIES THAT ISSUE SHARES AT
DISCOUNTS TO THE MARKET PRICE, SUCH EXTENSION OF THE
GENERAL SHARE ISSUANCE MANDATE MAY INCREASE THE SCOPE
OF NON-PREEMPTIVE PLACEMENTS, PUTTING MINORITY
SHAREHOLDERS AT A DISADVANTAGE AS REPURCHASED SHARES
MAY ALSO BE REISSUED AT A DISCOUNT TO THE MARKET
PRICE. IN VIEW OF THIS, SHAREHOLDERS ARE RECOMMENDED
TO OPPOSE THIS ITEM UNLESS A MINIMAL DISCOUNT OF 5
PERCENT OR LESS IS SPECIFIED FOR SHARE ISSUANCES
UNDER A GENERAL MANDATE. IN THIS CASE, THE COMPANY
HAS NOT SPECIFIED DISCOUNT LIMITS FOR THE ISSUANCE OF
SHARES WITHOUT PREEMPTIVE RIGHTS. AS SUCH, WE
RECOMMEND SHAREHOLDERS VOTE AGAINST THIS RESOLUTION.
- ----------------------------------------------------------------------------------------------------------------------------------
05/15/07 - A XTO ENERGY INC *XTO* 98385X106 03/30/07 17,690
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Director Lane G. Collins For For Mgmt
2 Elect Director Scott G. Sherman For For Mgmt
3 Elect Director Bob R. Simpson For For Mgmt
4 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
06/12/07 - A YAHOO!, INC. *YHOO* 984332106 04/16/07 190,170
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Director Terry S. Semel For For Mgmt
BASED ON THE ABOVE ANALYSIS, IT APPEARS THAT CEO
SEMEL IS REWARDED WHEN TIMES ARE GOOD - PAY FOR
PERFORMANCE, AND WHEN TIMES ARE BAD - RETENTION. ISS
QUESTIONS HOW MUCH MORE INCENTIVIZING CAN MEGA OPTION
GRANTS PROVIDE TO CEO SEMEL WHEN HE HAS RECEIVED AND
ACCUMULATED SIGNIFICANT WEALTH FROM EXERCISING YAHOO
STOCK. WHILE THE RATIONALE IS DISCLOSED FOR THE SIX
MILLION RETENTION OPTIONS, SHAREHOLDERS ARE NOT
PROVIDED WITH SUFFICIENT INSIGHT AS HOW THIS NUMBER
IS REASONABLE. THEREFORE, ISS RECOMMENDS VOTING
AGAINST FROM THE COMPENSATION COMMITTEE MEMBERS:
ARTHUR KERN,
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 45
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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ROY BOSTOCK AND RONALD BURKLE. ISS FURTHER NOTES THAT
RONALD BURKLE IS ALSO A COMPENSATION COMMITTEE AT TWO
OTHER PUBLICLY-TRADED COMPANIES, KB HOMES AND
OCCIDENTAL PETROLEUM, WHERE CEO PAY HAS BEEN RAISED
AS ISSUES.
2 Elect Director Jerry Yang For For Mgmt
3 Elect Director Roy J. Bostock For Against Mgmt
4 Elect Director Ronald W. Burkle For Against Mgmt
5 Elect Director Eric Hippeau For For Mgmt
6 Elect Director Vyomesh Joshi For For Mgmt
7 Elect Director Arthur H. Kern For Against Mgmt
8 Elect Director Robert A. Kotick For For Mgmt
9 Elect Director Edward R. Kozel For For Mgmt
10 Elect Director Gary L. Wilson For For Mgmt
11 Amend Omnibus Stock Plan For For Mgmt
VI. VOTE RECOMMENDATION THE ESTIMATED
SHAREHOLDER VALUE TRANSFER OF THE COMPANY'S PLANS OF
11 PERCENT IS EQUAL TO OR LESS THAN THE ALLOWABLE CAP
FOR THIS COMPANY OF 11 PERCENT. ADDITIONALLY, THIS
PLAN EXPRESSLY FORBIDS REPRICING.
12 Amend Qualified Employee Stock Purchase For For Mgmt
Plan
ISS APPROVES OF THIS ITEM BECAUSE THE PLAN COMPLIES
WITH SECTION 423 OF THE INTERNAL REVENUE CODE, THE
NUMBER OF SHARES BEING ADDED IS RELATIVELY
CONSERVATIVE, THE OFFERING PERIOD IS REASONABLE, AND
THERE ARE LIMITATIONS ON PARTICIPATION.
13 Ratify Auditors For For Mgmt
14 Pay For Superior Performance Against For ShrHoldr
IN THIS CASE, THE COMPANY'S ANNUAL AND LONG-TERM
COMPENSATION PROGRAMS FOR SENIOR EXECUTIVES ARE NOT
SUBSTANTIALLY PERFORMANCE-BASED UNDER CURRENT ISS
GUIDELINES. FURTHER, THE COMPANY DOES NOT DISCLOSE
SPECIFIC PERFORMANCE MEASURES AND HURDLES RATES FOR
PERFORMANCE-BASED AWARD GRANTS TO SENIOR EXECUTIVES,
WHICH DENIES SHAREHOLDER THE ABILITY TO MONITOR THE
CORRELATION BETWEEN EXECUTIVE PAY AND PERFORMANCE.
ACCORDINGLY, ISS BELIEVES SHAREHOLDERS SHOULD
SUPPORT THIS PROPOSAL.
15 Adopt Policies to Protect Freedom of Against For ShrHoldr
Access to the Internet
THEREFORE, BASED ON YAHOO'S LACK OF AN
EXISTING FORMAL HUMAN RIGHTS POLICY RELATED TO
INTERNET MONITORING AND CENSORSHIP, AND GIVEN THE
IMPACT THAT THESE ISSUES MAY HAVE ON THE COMPANY, WE
RECOMMEND SHAREHOLDER SUPPORT FOR THIS RESOLUTION.
16 Amend Bylaws to Establish a Board Against Against ShrHoldr
Committee on Human Rights
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 46
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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THAT SAID, WE ALSO AGREE THAT A COMPANY'S
MANAGEMENT IS OFTEN IN THE BEST POSITION TO EVALUATE
THE DAY TO DAY IMPACT THAT COMPANY POLICIES MAY HAVE
ON OPERATIONAL EFFICIENCY AND PROFITABILITY.
THEREFORE, ISS WILL CONTINUE TO MONITOR
YAHOO'S ACTIVITIES RELATED TO HUMAN RIGHTS AND
MAY CONSIDER SUPPORTING BYLAW CHANGES TO CREATE A
BOARD COMMITTEE ON HUMAN RIGHTS IN THE FUTURE IF THE
COMPANY FAILS TO IMPROVE UPON ITS DISCLOSURE RELATED
TO THIS TOPIC. HOWEVER BASED ON YAHOO'S
CURRENT COMMITMENT TO ADDRESS THESE ISSUES WE DO NOT
BELIEVE THAT THE REQUESTED BYLAW CHANGES ARE
WARRANTED AT THIS TIME.
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 47
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
05/08/07 - A ALTERA CORP. *ALTR* 021441100 03/12/07 333,590
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Director John P. Daane For For Mgmt
2 Elect Director Robert W. Reed For For Mgmt
3 Elect Director Robert J. Finocchio, Jr. For For Mgmt
4 Elect Director Kevin McGarity For For Mgmt
5 Elect Director John Shoemaker For For Mgmt
6 Elect Director Susan Wang For For Mgmt
7 Amend Qualified Employee Stock Purchase For For Mgmt
Plan
ISS APPROVES OF THIS ITEM BECAUSE THE PLAN COMPLIES
WITH SECTION 423 OF THE INTERNAL REVENUE CODE, THE
NUMBER OF SHARES BEING ADDED IS RELATIVELY
CONSERVATIVE, THE OFFERING PERIOD IS REASONABLE, AND
THERE ARE LIMITATIONS ON PARTICIPATION.
8 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
05/10/07 - A APPLE, INC. *AAPL* 037833100 03/20/07 212,540
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Split Mgmt
1.1 Elect Director William V. Campbell --- Withhold
IN 2003, ISS RECOMMENDED WITHHOLDS FROM ALMOST ALL
MEMBERS OF THE BOARD, INCLUDING STEVE JOBS FOR
CONDUCTING AN OPTION EXCHANGE PROGRAM WITHOUT PRIOR
SHAREHOLDER APPROVAL. ONCE AGAIN, APPLE IS DISPLAYING
A PATTERN OF POOR PAY PRACTICE AND DISREGARD FOR
SHAREHOLDERS' INPUT ON COMPENSATION ISSUES AT
THE COMPANY. THE APPLE BOARD'S HANDLING OF THE ENTIRE
OPTIONS IMBROGLIO DOES NOT INSPIRE INVESTOR
CONFIDENCE. THE WINDOW INTO CURRENT AND PAST
COMPENSATION PRACTICES AT THE COMPANY PROVIDED BY THE
BOARD IS BEST DESCRIBED AS OPAQUE. INSTEAD OF CANDOR,
THE DIRECTORS HAVE PARSED THEIR WORDS WITH SUCH
DELIBERATION THAT THEY HAVE AT TIMES TORTURED THE
ENGLISH LANGUAGE. HANDCUFFED BY ITS OWN SPIN, THE
BOARD HAS TAKEN INSUFFICIENT STEPS TO ASSURE
INVESTORS THAT INSIDERS WILL NOT PROFIT FROM THE
FAVORABLE TIMING OF EQUITY GRANTS. SUCH BEHAVIOR SETS
AN UNACCEPTABLY LOW BAR FOR CORPORATE CONDUCT AT
APPLE. IN THIS AGE OF HEIGHTENED CORPORATE SCRUTINY,
IT IS CRITICAL THAT THE BOARD SETS THE TONE.
UNFORTUNATELY, THE APPLE BOARD WITH RESPECT TO THESE
GRANT TIMING ISSUES HAS PROVEN TO BE TONE-DEAF AT THE
TOP. STRONG FINANCIAL PERFORMANCE DOES NOT EXCUSE
SUCH SHORTCOMINGS IN OVERSIGHT. CEO STEVE JOBS HAS
BEEN INSTRUMENTAL IN CREATING SIGNIFICANT SHAREHOLDER
VALUE; HOWEVER, A CULT-LIKE DEVOTION TO ANY CEO CAN
BE A HUGE DOWNSIDE RISK TO SHAREHOLDERS. THE ENTIRE
BOARD, INCLUDING STEVE JOBS, NEEDS TO ENSURE THAT
EVEN SUPERSTAR CEOS DO NOT RULE THE EMPIRE. AT THIS
TIME, ISS RECOMMENDS WITHHOLDING FROM ALL MEMBERS
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Mgmt Rec - Company Management Recommended Vote Page 1
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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OF THE PAST AND PRESENT COMPENSATION COMMITTEE
(MILLARD S. DREXLER, WILLIAM V. CAMPBELL, ALBERT GORE
JR. AND ARTHUR LEVINSON) AND THE SPECIAL COMMITTEE
(JEROME B. YORK, ALBERT GORE JR., AND ERIC E.
SCHMIDT). AS FOR STEVE JOBS, ISS WILL CONTINUE TO
MONITOR THE SITUATION AS IT UNFOLDS AND UPDATE OUR
VOTE RECOMMENDATION, IF NECESSARY. WE NOTE THAT THE
COMPANY HAS A PLURALITY VOTE STANDARD FOR THE
ELECTION OF DIRECTORS. THEREFORE, THE WITHHOLD VOTE
WOULD SERVE AS A STRONG SIGNAL TO THE BOARD BUT WOULD
NOT CAUSE REMOVAL OF THE DIRECTORS.
1.2 Elect Director Millard S. Drexler --- Withhold
1.3 Elect Director Albert A. Gore, Jr. --- Withhold
1.4 Elect Director Steven P. Jobs --- For
1.5 Elect Director Arthur D. Levinson, Ph.D. --- Withhold
1.6 Elect Director Eric E. Schmidt, Ph.D. --- Withhold
1.7 Elect Director Jerome B. York --- Withhold
2 Amend Omnibus Stock Plan For For Mgmt
VI. VOTE RECOMMENDATION THE ESTIMATED
SHAREHOLDER VALUE TRANSFER OF THE COMPANY'S PLANS OF
8 PERCENT IS EQUAL TO OR LESS THAN THE ALLOWABLE CAP
FOR THIS COMPANY OF 10 PERCENT. ADDITIONALLY, THIS
PLAN EXPRESSLY FORBIDS REPRICING.
3 Amend Qualified Employee Stock Purchase For For Mgmt
Plan
ISS APPROVES OF THIS ITEM BECAUSE THE PLAN COMPLIES
WITH SECTION 423 OF THE INTERNAL REVENUE CODE, THE
NUMBER OF SHARES BEING ADDED IS RELATIVELY
CONSERVATIVE, THE OFFERING PERIOD IS REASONABLE, AND
THERE ARE LIMITATIONS ON PARTICIPATION.
4 Amend Non-Employee Director Stock Option For For Mgmt
Plan
VII. VOTE RECOMMENDATION THE ESTIMATED SHAREHOLDER
VALUE TRANSFER OF THE COMPANY'S PLANS OF 7 PERCENT IS
EQUAL TO OR LESS THAN THE ALLOWABLE CAP FOR THIS
COMPANY OF 10 PERCENT. ADDITIONALLY, THIS PLAN
EXPRESSLY FORBIDS REPRICING.
5 Ratify Auditors For For Mgmt
6 Compensation Specific--Option Dating Policy Against For ShrHoldr
ISS NOTES THAT MANY COMPANIES, INCLUDING THOSE THAT
HAVE NOT BEEN ALLEGED WITH OPTIONS BACKDATING, HAVE
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VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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ADOPTED AND DISCLOSED FIXED EQUITY GRANT SCHEDULE
WITH RESPECT TO ANNUAL EQUITY GRANTS AS WELL AS NEW
HIRE GRANTS. OTHER COMPANIES PUBLICLY DISCLOSE THAT
THEY HAVE ADOPTED WINDOW PERIOD POLICY ON EQUITY
GRANTS AND DO NOT COORDINATE THE ISSUANCE OF EQUITY
COMPENSATION IN COORDINATION WITH THE RELEASE OF
MATERIAL NON-PUBLIC INFORMATION. ISS SUPPORTS THIS
PROPOSAL IN LIGHT OF THE COMPANY'S PAST MISDATING OF
OPTIONS AND THE LACK OF DISCLOSURE OF ITS CURRENT
OPTION GRANT PRACTICES.
7 Pay For Superior Performance Against For ShrHoldr
IN THIS CASE, THE COMPANY'S ANNUAL AND
LONG-TERM COMPENSATION PROGRAMS FOR SENIOR EXECUTIVES
ARE NOT SUBSTANTIALLY PERFORMANCE-BASED UNDER CURRENT
ISS GUIDELINES. FURTHER, THE COMPANY DOES NOT
DISCLOSE SPECIFIC HURDLES RATES FOR ITS ANNUAL
INCENTIVE PROGRAM TO SENIOR EXECUTIVES, WHICH DENIES
SHAREHOLDER THE ABILITY TO MONITOR THE CORRELATION
BETWEEN EXECUTIVE PAY AND PERFORMANCE. ACCORDINGLY,
ISS BELIEVES SHAREHOLDERS SHOULD SUPPORT THIS
PROPOSAL.
8 Report on Feasibility of Adopting a Toxic Against Against ShrHoldr
Chemical Elimination Policy
THEREFORE, BASED ON OUR CONCERN WITH THE STRUCTURE OF
THIS RESOLUTION, AS WELL AS THE MANAGEMENT'S
POLICIES AND COMMITMENTS TO ACTIVELY ASSESS AND
MANAGE ITS TOXIC CHEMICAL RELATED RISKS, AND THE
EXISTING LEVEL OF DISCLOSURE RELATED TO ITS TOXIC
CHEMICAL POLICIES AND INITIATIVES, ISS RECOMMENDS
THAT SHAREHOLDERS OPPOSE THIS RESOLUTION.
9 Stock Retention/Holding Period Against For ShrHoldr
ISS SUPPORTS THIS SHAREHOLDER PROPOSAL AS THE COMPANY
HAS NOT ADOPTED ANY EXECUTIVE STOCK OWNERSHIP
GUIDELINES OR RETENTION GUIDELINES.
10 Report on Computer Recycling Policy Against Against ShrHoldr
ISS AGREES WITH THE PROPONENT THAT THE COMPANY SHOULD
CONTINUOUSLY EVALUATE ITS RECYCLING PROGRAMS,
INCLUDING PUBLICLY STATED RECOVERY GOALS, TO ENSURE
THAT ITS POLICIES DO NOT APPEAR TO LAG BEHIND
INDUSTRY STANDARDS. IN THIS CASE, WE NOTE THAT THE
COMPANY DOES NOT APPEAR TO DISCLOSE PRODUCT TAKE BACK
GOALS AND ITS RECYCLING PROGRAMS MAY NOT BE IN ALL
CASES BE AS FLEXIBLE RELATIVE TO INDUSTRY PEERS. THAT
SAID, WE NOTE THAT THE COMPANY HAS TAKEN SIGNIFICANT
STRIDES IN THE LAST YEAR TO UPGRADE ITS RECYCLING
INITIATIVES BY OFFERING FREE RECYCLING AND SHIPPING
OF ANY OLD COMPUTER TO PURCHASERS OF NEW APPLE
MACINTOSH COMPUTERS OR FLAT-PANEL DISPLAYS. FURTHER,
ISS NOTES THAT THE COMPANY OFFERS
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VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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SUBSTANTIAL COUNTRY-SPECIFIC INFORMATION TO ASSIST
CUSTOMERS IN THE RECYCLING OF ITS PRODUCTS. REGARDING
ITS ENVIRONMENTAL MANAGEMENT SYSTEMS, APPLE PROVIDES
SIGNIFICANT PUBLICLY AVAILABLE INFORMATION DISCUSSING
THE COMPANY'S ENVIRONMENTAL POLICIES AND
COMMITMENTS TO MINIMIZE WASTE AND TOXIC CHEMICALS
OVER THE COURSE OF ITS PRODUCTS' LIFE CYCLE.
WHILE WE AGREE THAT THIS DISCLOSURE DOES NOT ADDRESS
EACH ISSUE RECOMMENDED BY THE PROPONENT'S
RESOLUTION, IT DOES PROVIDE SHAREHOLDERS WITH
SUBSTANTIAL INSIGHT INTO THE COMPANY'S
ENVIRONMENTAL AND RECYCLING POLICIES, AND IT
DEMONSTRATES AN ACTIVE COMMITMENT ON THE PART OF THE
COMPANY TO CONTINUE TO IMPROVE ITS EXISTING
ENVIRONMENTAL, PRODUCT LIFE CYCLE, AND
RECYCLING-SPECIFIC INITIATIVES. ADDITIONALLY, THE
COMPANY HAS NOT BEEN THE SUBJECT OF RECENT FINES OR
LITIGATION RELATED TO THIS ISSUE SUGGESTING THAT THE
COMPANY HAS SYSTEMATIC PROBLEMS WITH ITS
ENVIRONMENTAL MANAGEMENT SYSTEMS. AS SUCH, WE DO NOT
BELIEVE THIS PROPOSAL WARRANTS SHAREHOLDER SUPPORT.
11 Advisory Vote to Ratify Named Executive Against For ShrHoldr
Officers' Compensation
ISS BELIEVES THAT THE ADVISORY VOTE WOULD ALLOW
SHAREHOLDERS A VOICE IN EXECUTIVE COMPENSATION
PRACTICES OF A COMPANY. THE ADVISORY VOTE WOULD BE A
CONFIDENCE VOTE ON THE WORK OF THE COMPENSATION
COMMITTEE. ISS ENCOURAGES COMPANIES TO ALLOW
SHAREHOLDERS TO EXPRESS THEIR OPINIONS OF EXECUTIVE
COMPENSATION PRACTICES BY ESTABLISHING AN ANNUAL
REFERENDUM PROCESS. AN ADVISORY VOTE ON EXECUTIVE
COMPENSATION IS ANOTHER STEP FORWARD IN ENHANCING
BOARD ACCOUNTABILITY.
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05/15/07 - A ARM HOLDINGS PLC 042068106 03/30/07 2,220,563
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MEETING FOR HOLDERS OF ADRS
1 TO RECEIVE THE COMPANY S ANNUAL REPORT AND For For Mgmt
ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER
2006.
2 TO DECLARE A FINAL DIVIDEND IN RESPECT OF For For Mgmt
THE YEAR ENDED 31 DECEMBER 2006.
3 TO APPROVE THE DIRECTORS REMUNERATION For For Mgmt
REPORT.
4 TO ELECT MS. K. O'DONOVAN AS A DIRECTOR. For For Mgmt
5 TO ELECT MR. Y. K. SOHN AS A DIRECTOR. For For Mgmt
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Mgmt Rec - Company Management Recommended Vote Page 4
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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6 TO RE-ELECT MR. W. EAST AS A DIRECTOR. For For Mgmt
7 TO RE-ELECT MR. L. LANZA AS A DIRECTOR. For Against Mgmt
FOR THESE REASONS, WE ARE RECOMMENDING THAT
SHAREHOLDERS OPPOSE HIS RE-ELECTION TO THE BOARD.
8 Ratify Auditors For For Mgmt
9 TO AUTHORISE THE DIRECTORS TO FIX THE For For Mgmt
REMUNERATION OF THE AUDITORS.
10 TO AUTHORISE THE COMPANY TO MAKE MARKET For For Mgmt
PURCHASES OF ITS OWN SHARES.
11 TO APPROVE ELECTRONIC COMMUNICATIONS AND For For Mgmt
RELATED CHANGES TO THE ARTICLES OF
ASSOCIATION.
12 TO APPROVE AN INCREASE IN THE LIMIT ON For For Mgmt
DIRECTORS REMUNERATION.
13 TO APPROVE THE CREATION OF DISTRIBUTABLE For For Mgmt
RESERVES BY CAPITALISATION/REDUCTION OF
CAPITAL.
14 TO APPROVE THE CANCELLATION OF CERTAIN For For Mgmt
SHARES.
15 TO REGULARISE 2006 INTERIM DIVIDEND AND For For Mgmt
APPROVE DEED OF RELEASE.
16 TO APPROVE THE INTRODUCTION OF A For For Mgmt
REPLACEMENT SAVINGS-RELATED SHARE OPTION
SCHEME.
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02/15/07 - A AVAYA INC *AV* 053499109 12/19/06 676,490
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1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
3 Amend Omnibus Stock Plan For For Mgmt
VI. VOTE RECOMMENDATION THE ESTIMATED SHAREHOLDER
VALUE TRANSFER OF THE COMPANY'S PLANS OF 12 PERCENT
IS EQUAL TO OR LESS THAN THE ALLOWABLE CAP FOR THIS
COMPANY OF 12 PERCENT. ADDITIONALLY, THIS PLAN
EXPRESSLY FORBIDS REPRICING.
4 Performance-Based and/or Time-Based Equity Against For ShrHoldr
Awards
IN THIS CASE, THE COMPANY'S ANNUAL AND LONG-TERM
INCENTIVE COMPENSATION PROGRAMS DO NOT SUFFICIENTLY
MEET THE PROPONENT'S REQUIREMENTS. THEREFORE, ISS
FEELS SHAREHOLDER SUPPORT FOR THIS PROPOSAL IS
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Mgmt Rec - Company Management Recommended Vote Page 5
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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WARRANTED.
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05/02/07 - A BROADCOM CORP. *BRCM* 111320107 03/06/07 367,606
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1 Elect Directors For Split Mgmt
1.1 Elect Director George L. Farinsky --- For
BASED ON THE MAGNITUDE OF THE RESTATEMENT DUE TO
OPTIONS BACKDATING (OVER $2 BILLION IN RESTATEMENT)
AND THE LACK OF ADEQUATE OVERSIGHTS ON THE GRANT
PROCEDURES OF OPTIONS DURING THE PROBLEMATIC PERIOD,
ISS RECOMMENDS A VOTE TO WITHHOLD FROM THE
COMPENSATION COMMITTEE MEMBERS AND THE EQUITY AWARD
COMMITTEE MEMBERS WHO WERE PRESENT DURING THE
PROBLEMATIC PERIOD: HENRY SAMUELI, ALAN E. ROSS,
WERNER F. WOLFEN. FURTHER, HENRY SAMUELI, WHO WAS ON
THE EQUITY AWARD COMMITTEE DURING THE PROBLEMATIC
PERIOD CONTINUES TO BE ON THE THAT COMMITTEE. ISS
ALSO RECOMMENDS A VOTE TO WITHHOLD FROM THE PRESENT
COMPENSATION COMMITTEE FOR NOT ADOPTING AND/OR
DISCLOSING ROBUST INTERNAL CONTROLS SURROUNDING
OPTION GRANTS: JOHN E. MAJOR, WERNER F. WOLFEN AND
MAUREEN E. GRZELAKOWSKI. EXAMPLES OF SUCH ROBUST
INTERNAL CONTROLS COULD INCLUDE THE REMOVAL OF
WRITTEN CONSENTS ON OPTIONS APPROVAL, TRAINING
SESSIONS ON OPTION GRANT PROCEDURES AND REGULAR AUDIT
REVIEWS BY THE COMPENSATION COMMITTEE. INCLUDED IN
THIS ANALYSIS IS A SHAREHOLDER PROPOSAL THAT RELATES
TO OPTIONS GRANT PRACTICES WHICH ISS IS SUPPORTING AS
WELL.
1.2 Elect Director Maureen E. Grzelakowski --- Withhold
1.3 Elect Director Nancy H. Handel --- For
1.4 Elect Director John Major --- Withhold
1.5 Elect Director Scott A. McGregor --- For
1.6 Elect Director Alan E. Ross --- Withhold
1.7 Elect Director Henry Samueli, Ph.D. --- Withhold
1.8 Elect Director Robert E. Switz --- For
1.9 Elect Director Werner F. Wolfen --- Withhold
2 Amend Qualified Employee Stock Purchase For Against Mgmt
Plan
DESPITE THE REASONABLE OFFERING PERIOD, ISS DOES NOT
SUPPORT THIS PROPOSAL BECAUSE THE ADDITIONAL SHARES
WOULD CAUSE EXCESSIVE VOTING POWER DILUTION.
3 Approve Executive Incentive Bonus Plan For For Mgmt
THE PERFORMANCE MEASURES INCLUDED UNDER THE PLAN
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Mgmt Rec - Company Management Recommended Vote Page 6
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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ARE APPROPRIATE FOR THE COMPANY GIVEN ITS LINE OF
BUSINESS, LONG-TERM STRATEGIC OBJECTIVES, AND
INDUSTRY-SPECIFIC MEASURES FOR ASSESSING MARKET
COMPETITIVENESS. ADDITIONALLY, THE PLAN IS
ADMINISTERED BY A COMMITTEE OF INDEPENDENT OUTSIDERS
WHO MUST CERTIFY ATTAINMENT OF THESE OBJECTIVE,
MEASURABLE PERFORMANCE GOALS BEFORE CASH AWARDS ARE
PAID TO PARTICIPANTS. MOREOVER, PRESERVATION OF THE
FULL DEDUCTIBILITY OF ALL COMPENSATION PAID REDUCES
THE COMPANY'S CORPORATE TAX OBLIGATION.
4 Amend Omnibus Stock Plan For Against Mgmt
VI. VOTE RECOMMENDATION WE COMMEND THE COMPANY
FOR EXPRESSLY FORBIDDING THE REPRICING OF STOCK
OPTIONS UNDER THE PLAN. HOWEVER, THE ESTIMATED
SHAREHOLDER VALUE TRANSFER OF THE COMPANY'S PLANS OF
111 PERCENT EXCEEDS OUR ALLOWABLE CAP FOR THIS
COMPANY OF 12 PERCENT. ADDITIONALLY, THIS COMPANY HAS
REPRICED STOCK OPTIONS WITHOUT SHAREHOLDER APPROVAL
IN THE PAST.
5 Ratify Auditors For For Mgmt
6 Compensation Specific-Adopt Policy Against For ShrHoldr
Concerning Backdating Controversy
WHILE THE PROPONENT AND THE COMPANY HAVE A DIFFERENT
DEFINITION OF FAIR MARKET VALUE, THE ESSENCE OF THE
PROPOSAL RELATES TO THE COMPANY'S STOCK OPTION GRANT
PRACTICE. ISS NOTES THAT THE COMPANY DOES NOT HAVE
THE PRACTICE OF SPRINGLOADING OR "BULLET-DODGING",
HOWEVER, ISS BELIEVES THAT THIS PROPOSAL WARRANTS
SHAREHOLDER APPROVAL IN LIGHT OF THE COMPANY'S
PREVIOUS OPTIONS BACKDATING PRACTICE.
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01/03/07 - S BROADWING CORP 11161E101 11/20/06 174,210
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1 Approve Merger Agreement For For Mgmt
BASED ON OUR REVIEW OF THE TERMS OF THE TRANSACTION
AND THE FACTORS DESCRIBED ABOVE, IN PARTICULAR THE
60-DAY MERGER PREMIUM, WE BELIEVE THAT THE MERGER
AGREEMENT WARRANTS SHAREHOLDER SUPPORT.
2 Amend Qualified Employee Stock Purchase For For Mgmt
Plan
ISS APPROVES OF THIS ITEM BECAUSE THE PLAN COMPLIES
WITH SECTION 423 OF THE INTERNAL REVENUE CODE, THE
NUMBER OF SHARES BEING ADDED IS RELATIVELY
CONSERVATIVE, THE OFFERING PERIOD IS REASONABLE, AND
THERE ARE LIMITATIONS ON PARTICIPATION.
3 Other Business For Against Mgmt
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Mgmt Rec - Company Management Recommended Vote Page 7
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AS WE CANNOT KNOW THE CONTENT OF THESE ISSUES, WE DO
NOT RECOMMEND THAT SHAREHOLDERS APPROVE THIS REQUEST.
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01/25/07 - S BROCADE COMMUNICATIONS SYSTEMS 111621108 11/30/06 354,640
*BRCD*
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1 Issue Shares in Connection with an For For Mgmt
Acquisition
BASED ON OUR REVIEW OF THE TERMS OF THE TRANSACTION
PARTICULARLY THE STRATEGIC RATIONALE AND THE 42.8
PERCENT INCREASE IN STOCK PRICE SINCE THE
ANNOUNCEMENT OF THE ACQUISITION TRANSACTION, WE
BELIEVE THAT THE SHARE ISSUANCE WARRANTS SHAREHOLDER
SUPPORT. NONETHELESS, WE NOTE THAT THE COMPANY IS
UNDER SEC INVESTIGATION FOR OPTIONS BACKDATING
ISSUES.
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04/19/07 - A BROCADE COMMUNICATIONS SYSTEMS 111621108 02/21/07 350,550
*BRCD*
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1 Elect Directors For Split Mgmt
1.1 Elect Director Renato A. Dipentima --- For
WE RECOMMEND A VOTE FOR RENATO A. DIPENTIMA, BUT
WITHHOLD VOTES FROM INDEPENDENT OUTSIDER SANJAY
VASWANI. WE RECOMMEND THAT SHAREHOLDERS WITHHOLD
VOTES FROM SANJAY VASWANI FOR NOT RESPONDING TO THE
DESIRES OF SHAREHOLDERS BY NOT DELETING THE
SUPERMAJORITY VOTE REQUIREMENTS IN ARTICLE VII AND
ARTICLE VIII OF ITS CERTIFICATE OF INCORPORATION AND
FOR NOT ADOPTING AND DISCLOSING INTERNAL CONTROLS AND
PROCEDURES TO PREVENT A REOCCURRENCE OF OPTIONS
BACKDATING.
1.2 Elect Director Sanjay Vaswani --- Withhold
2 Approve Reverse/Forward Stock Split For For Mgmt
GIVEN THAT THE PROPOSED TRANSACTION WOULD ALLOW THE
COMPANY TO REALIZE SIGNIFICANT COST SAVINGS WITHOUT
ADVERSELY AFFECTING SHAREHOLDERS, WE BELIEVE THIS
ITEM WARRANTS SHAREHOLDER SUPPORT.
3 Ratify Auditors For For Mgmt
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06/05/07 - A BUSINESS OBJECTS S.A. 12328X107 04/19/07 216,260
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MEETING FOR HOLDERS OF ADRS
1 APPROVAL OF THE COMPANY'S STATUTORY For For Mgmt
FINANCIAL STATEMENTS FOR THE YEAR
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Mgmt Rec - Company Management Recommended Vote Page 8
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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ENDED DECEMBER 31, 2006
2 APPROVAL OF THE COMPANY'S CONSOLIDATED For For Mgmt
FINANCIAL STATEMENTS FOR THE YEAR ENDED
DECEMBER 31, 2006
3 ALLOCATION OF THE COMPANY'S EARNINGS FOR For For Mgmt
THE YEAR ENDED DECEMBER 31, 2006
4 RENEWAL OF THE TERM OF OFFICE OF MR. For For Mgmt
ARNOLD SILVERMAN, AS A DIRECTOR OF THE
COMPANY
5 RENEWAL OF THE TERM OF OFFICE OF MR. For For Mgmt
BERNARD CHARLES, AS A DIRECTOR OF THE
COMPANY
6 RENEWAL OF THE TERM OF OFFICE OF DR. KURT For For Mgmt
LAUK, AS A DIRECTOR OF THE COMPANY
7 RENEWAL OF TERM OF OFFICE OF MR. CARL For For Mgmt
PASCARELLA, AS A DIRECTOR OF THE COMPANY
8 APPROVAL OF AN ADDITIONAL AGGREGATE AMOUNT For For Mgmt
OF AUTHORIZED DIRECTOR FEES
9 RATIFICATION OF REGULATED AGREEMENTS For Against Mgmt
ONGOING RELATED-PARTY TRANSACTIONS WITH EXECUTIVE
DIRECTORS DISCLOSED IN THE SPECIAL AUDITORS' REPORT
CONCERN SEVERANCE PAYMENTS. IN CASE OF DISMISSAL OR
DEPARTURE, THE CHAIRMAN AND CHIEF STRATEGY OFFICER OF
THE COMPANY, BERNARD LIAUTAUD, AND THE CEO, JOHN
SCHWARZ, WOULD RECEIVE A SEVERANCE PAYMENT EQUAL TO
TWO YEARS OF REMUNERATION (ONLY ONE YEAR FOR THE
CEO), THEIR MEDICAL INSURANCE WOULD BE EXTENDED FOR
18 MONTHS, AND THEIR STOCK OPTIONS AND RESTRICTED
SHARES COULD BE EXERCISED 12 MONTHS EARLIER THAN
ORIGINALLY PLANNED. IN CASE OF TRANSFER OF CONTROL OF
THE COMPANY, THE SEVERANCE PAYMENT PAID TO JOHN
SCHWARZ WOULD BE EQUAL TO TWO YEARS OF REMUNERATION.
MOREOVER, IF THIS SEVERANCE PAYMENT WAS PAID IN CASE
OF TRANSFER OF CONTROL WITHIN 12 MONTHS OF THE LATEST
DISTRIBUTION OF STOCK-OPTIONS OR RESTRICTED SHARES,
INSOFAR AS IT COULD BE QUALIFY AS "PARACHUTE
PAYMENTS" PURSUANT TO ARTICLE 280G OF U.S. "INTERNAL
REVENUE CODE," JOHN SCHWARZ COULD RECEIVE IN ADDITION
A MAXIMUM AMOUNT OF $2 MILLION TO PAY THE RELATED
TAXES TRIGGERED BY THIS QUALIFICATION. AS THE AMOUNT
OF THIS SEVERANCE PAYMENT (INCLUDING ADDITIONAL
SEVERANCE PAYMENT) MAY EXCEED THE AMOUNT
CORRESPONDING TO TWICE SCHWARZ'S WHOLE ANNUAL CURRENT
REMUNERATION, WE RECOMMEND OPPOSITION TO THIS
RESOLUTION.
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Mgmt Rec - Company Management Recommended Vote Page 9
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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10 Ratify Auditors For For Mgmt
11 AUTHORIZATION GRANTED TO THE BOARD OF For Against Mgmt
DIRECTORS TO REPURCHASE SHARES OF THE
COMPANY
AS THE SHARE REPURCHASE PROGRAM CAN BE CONTINUED
DURING A TAKEOVER PERIOD, SHAREHOLDERS ARE ADVISED TO
OPPOSE THE RESOLUTION.
12 AUTHORIZATION GRANTED TO THE BOARD OF For For Mgmt
DIRECTORS TO REDUCE THE COMPANY'S SHARE
CAPITAL BY CANCELLATION OF TREASURY SHARES
13 AUTHORIZATION GRANTED TO THE BOARD OF For For Mgmt
DIRECTORS TO INCREASE THE COMPANY'S SHARE
CAPITAL THROUGH THE ISSUANCE OF ORDINARY
SHARES, WITH SUBSCRIPTION RESERVED TO THE
PARTICIPANTS IN THE COMPANY S EMPLOYEE
SAVINGS PLAN
14 DELEGATION OF POWERS GRANTED TO THE BOARD For For Mgmt
OF DIRECTORS TO INCREASE THE COMPANY'S
SHARE CAPITAL THROUGH THE ISSUANCE OF
ORDINARY SHARES, WITH SUBSCRIPTION
RESERVED TO THE 2004 BUSINESS OBJECTS S.A.
EMPLOYEE BENEFITS TRUST
15 AUTHORIZATION GRANTED TO THE BOARD OF For Against Mgmt
DIRECTORS TO GRANT OPTIONS TO SUBSCRIBE OR
TO PURCHASE ORDINARY SHARES OF THE COMPANY
AND APPROVAL OF THE 2007 STOCK OPTION PLAN
THE PLAN DOES NOT CONTAIN ONE KEY ELEMENT THAT WE
FAVOR IN A STANDARD FRENCH EXECUTIVE STOCK OPTION
PLAN. THE TOTAL NUMBER OF SHARES RESERVED FOR THE
COMPANY'S STOCK OPTION PLANS EXCEEDS OUR RECOMMENDED
GUIDELINES FOR GROWTH-ORIENTED COMPANIES. OUR
GUIDELINES PROVIDE THAT SHARES RESERVED FOR ALL SHARE
OPTIONS PLANS MAY NOT EXCEED BETWEEN 5 AND 10 PERCENT
OF COMPANY'S ISSUED SHARE CAPITAL.
16 DELEGATION OF POWERS GRANTED TO THE BOARD For Against Mgmt
OF DIRECTORS TO INCREASE THE COMPANY S
SHARE CAPITAL THROUGH THE ISSUANCE OF
ORDINARY SHARES, WITH
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Mgmt Rec - Company Management Recommended Vote Page 10
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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SUBSCRIPTION RESERVED TO
THE BUSINESS OBJECTS EMPLOYEE
BENEFIT SUB-PLAN TRUST
OUR GUIDELINES PROVIDE THAT SHARES RESERVED FOR ALL
SHARE OPTIONS PLANS MAY NOT EXCEED BETWEEN 5 AND 10
PERCENT OF COMPANY'S ISSUED SHARE CAPITAL. AS THE
TOTAL NUMBER OF SHARES RESERVED FOR THE COMPANY'S
SHARE OPTION PLANS EXCEEDS OUR RECOMMENDED GUIDELINES
FOR GROWTH-ORIENTED COMPANIES, SHAREHOLDERS ARE
ADVISED NOT TO SUPPORT THIS PROPOSAL.
17 AUTHORIZATION GRANTED TO THE BOARD OF For Against Mgmt
DIRECTORS TO ALLOCATE, FREE OF CHARGE,
EXISTING ORDINARY SHARES, OR TO ISSUE,
FREE OF CHARGE, NEW ORDINARY SHARES, TO
THE EMPLOYEES AND CERTAIN OFFICERS OF THE
COMPANY AND ITS SUBSIDIARIES
IN LIGHT OF THE ABSENCE OF QUANTITATIVE INFORMATION
REGARDING THE PERFORMANCE CRITERIA, AND AS THE TOTAL
NUMBER OF SHARES RESERVED FOR THE COMPANY'S SHARE
OPTION PLANS EXCEEDS OUR RECOMMENDED GUIDELINES FOR
GROWTH-ORIENTED COMPANIES, A VOTE AGAINST THIS
PROPOSAL IS RECOMMENDED.
18 DELEGATION OF AUTHORITY GRANTED TO THE For Against Mgmt
BOARD OF DIRECTORS TO ISSUE WARRANTS FREE
OF CHARGE IN THE EVENT OF A PUBLIC TENDER
OFFER/EXCHANGE OFFER FOR THE COMPANY
WITHIN THE FRAMEWORK OF A LEGAL
RECIPROCITY CLAUSE
BUSINESS OBJECTS DID NOT DISCLOSE INFORMATION
CONCERNING THE USE OF THOSE WARRANTS, AND THE COMPANY
IS ALREADY PROTECTED BY OTHER TOOLS (SHARE REPURCHASE
PROGRAM DURING TAKEOVER PERIOD). MOREOVER, THE
MAXIMUM CAPITAL INCREASE EXCEEDS OUR RECOMMENDED
THRESHOLD OF 25 PERCENT, AND THE COMPANY DID NOT
PROVIDE FOR ONE OF THE ALTERNATIVE PROVISIONS THAT WE
LOOK INTO UNDER THE POINT (III). THEREFORE, WE
RECOMMEND THAT SHAREHOLDERS VOTE AGAINST THIS ITEM.
19 APPROVAL OF THE AMENDMENTS OF THE COMPANY For For Mgmt
S ARTICLES OF ASSOCIATION TO CONFORM THEM
TO THE NEW PROVISIONS OF THE FRENCH
COMMERCIAL CODE, AS
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Mgmt Rec - Company Management Recommended Vote Page 11
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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AMENDED BY FRENCH DECREE
2006-1566 DATED DECEMBER 11, 2006
20 AUTHORIZATION GRANTED TO THE BOARD OF For Against Mgmt
DIRECTORS TO ISSUE WARRANTS TO SUBSCRIBE
UP TO A MAXIMUM OF 45,000 ORDINARY SHARES
RESERVED FOR MR. ARNOLD SILVERMAN
THE EXERCISE PRICE FOR THE SHARES TO BE ISSUED UNDER
THIS AUTHORIZATION WOULD BE EQUAL TO THE CLOSING
TRADING PRICE THE DAY PRIOR TO THE GENERAL MEETING.
THEREFORE, THE EXERCISE DATE IS NOT THE DAY ON WHICH
THE PRICE IS DECIDED, AND CONSEQUENTLY, A POTENTIAL
DISCOUNT EXISTS. BECAUSE THERE IS A POTENTIAL
DISCOUNT THAT WE CANNOT APPRECIATE A PRIORI,
SHAREHOLDERS ARE ADVISED NOT TO SUPPORT THESE
RESOLUTIONS.
21 AUTHORIZATION GRANTED TO THE BOARD OF For Against Mgmt
DIRECTORS TO ISSUE WARRANTS TO SUBSCRIBE
UP TO A MAXIMUM OF 45,000 ORDINARY SHARES
RESERVED FOR MR. BERNARD CHARLES
22 AUTHORIZATION GRANTED TO THE BOARD OF For Against Mgmt
DIRECTORS TO ISSUE WARRANTS TO SUBSCRIBE
UP TO A MAXIMUM OF 45,000 ORDINARY SHARES
RESERVED FOR DR. KURT LAUK
23 AUTHORIZATION GRANTED TO THE BOARD OF For Against Mgmt
DIRECTORS TO ISSUE WARRANTS TO SUBSCRIBE
UP TO A MAXIMUM OF 30,000 ORDINARY SHARES
RESERVED FOR MR. CARL PASCARELLA
24 AUTHORIZATION GRANTED TO THE BOARD OF For Against Mgmt
DIRECTORS TO ISSUE WARRANTS TO SUBSCRIBE
UP TO A MAXIMUM OF 45,000 ORDINARY SHARES
RESERVED FOR MR. DAVID PETERSCHMIDT
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11/15/06 - A CISCO SYSTEMS, INC. *CSCO* 17275R102 09/18/06 541,200
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
3 Performance-Based and/or Time-Based Equity Against For ShrHoldr
Awards
GIVEN THAT: (1) THE COMPANY'S LONG-TERM EQUITY
COMPENSATION PROGRAM FOR SENIOR EXECUTIVES IS NOT
PERFORMANCE-BASED ACCORDING TO ISS' GUIDELINES AND;
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Mgmt Rec - Company Management Recommended Vote Page 12
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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(2) THIS PROPOSAL IS NOT OVERLY RESTRICTIVE; WE
BELIEVE THIS ITEM WARRANTS SHAREHOLDER SUPPORT.
4 Report on Pay Disparity Against Against ShrHoldr
ALTHOUGH ISS GENERALLY RECOMMENDS VOTES FOR PROPOSALS
WHICH INCREASE THE LEVEL OF DISCLOSURE ON TOPICS OF
IMPORTANCE TO SHAREHOLDERS AND SUPPORT
PERFORMANCE-BASED COMPENSATION FOR EXECUTIVES, THE
SYSTEM SUGGESTED IN THIS SHAREHOLDER PROPOSAL
SUGGESTS REPORTING ON SALARY COMPARISONS AND
EVALUATING OVERALL COMPENSATION THRESHOLDS THAT MAY
HAVE LIMITED UTILITY FOR SHAREHOLDERS. THEREFORE,
BASED ON THE LIMITED UTILITY OR ARBITRARY NATURE OF
THE DETAILED INFORMATION REQUESTED BY THE REPORT, WE
DO NOT RECOMMEND SHAREHOLDER SUPPORT FOR THIS
RESOLUTION.
5 Report on Internet Fragmentation Against For ShrHoldr
THEREFORE, WHILE WE COMMEND CISCO FOR ITS BROAD
APPROACH TO INTERNATIONAL HUMAN RIGHTS ISSUES, WE
BELIEVE THAT INCLUDING ADDITIONAL INFORMATION IN ITS
EXISTING PUBLIC DOCUMENTS ON POLICIES AND PRACTICES
RELATED TO DOING BUSINESS WITH GOVERNMENTS THAT
RESTRICT CERTAIN HUMAN RIGHTS COULD BE BENEFICIAL TO
SHAREHOLDERS WITHOUT SIGNIFICANT EXPENSE OR BURDEN ON
THE COMPANY. AS SUCH, WE RECOMMEND SHAREHOLDER
SUPPORT FOR THIS RESOLUTION.
- ----------------------------------------------------------------------------------------------------------------------------------
11/16/06 - S COVANTA HOLDING CORP. 22282E102 10/10/06 192,260
*CVA*
- ----------------------------------------------------------------------------------------------------------------------------------
1 Company-Specific--Organization-Related For For Mgmt
ISS AGREES THAT THIS PROVISION WHICH RESTRICTS THE
ACQUISITION AND TRANSFER OF STOCK BY FIVE PERCENT
AND GREATER SHAREHOLDERS IS NO LONGER NECESSARY
GIVEN THE COMPANY'S CURRENT POSITION. THE DELETION
OF THIS PROVISION WOULD AFFORD THE COMPANY MORE
OPPORTUNITIES FOR FINANCING AND WOULD OFFER THE
COMPANY GREATER LIQUIDITY.
2 Company-Specific--Organization-Related For Against Mgmt
ISS ENCOURAGES BRINGING ALL MATERIAL ITEMS TO A VOTE,
SO THAT SHAREHOLDERS MAY DETERMINE WHETHER THE
ACTIONS OF THE BOARD ARE IN SHAREHOLDERS' BEST
INTERESTS. BLANK CHECK PREFERRED STOCK CAN
POTENTIALLY BE USED AS A TAKEOVER DEFENSE BY PLACING
BLOCKS OF SHARES WITH PARTIES FRIENDLY TO MANAGEMENT.
PREFERRED STOCK CAN ALSO SUBSTANTIALLY DILUTE COMMON
SHAREHOLDERS' VOTING POWER AND EQUITY INTEREST.
BECAUSE THE TERMS OF PREFERRED STOCK ISSUED BY THE
COMPANY COULD HAVE A SIGNIFICANT IMPACT ON ALL
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 13
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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SHAREHOLDERS, WE DO NOT BELIEVE THAT SECTION 4.3
SHOULD BE DELETED, AS THIS WOULD ALLOW TERMS OF
PREFERRED SHARES TO BE ESTABLISHED BY THE BOARD
WITHOUT FURTHER APPROVAL BY SHAREHOLDERS.
- ----------------------------------------------------------------------------------------------------------------------------------
02/06/07 - A DOLBY LABORATORIES, INC. *DLB* 25659T107 12/14/06 288,188
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
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06/06/07 - A EXPEDIA INC *EXPE* 30212P105 04/12/07 175,780
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Split Mgmt
1.1 Elect Director A. George (skip) Battle ---
For
WE RECOMMEND A VOTE FOR THE DIRECTORS WITH THE
EXCEPTION OF INSIDERS BARRY DILLER, VICTOR A.
KAUFMAN, WILLIAM R. FITZGERALD, DARA KHOSROWSHAHI AND
JOHN C. MALONE, AND AFFILIATED OUTSIDER SIMON J.
BREAKWELL. WE RECOMMEND THAT SHAREHOLDERS WITHHOLD
VOTES FROM WILLIAM R. FITZGERALD FOR STANDING AS AN
INSIDER ON THE COMPENSATION COMMITTEE, FOR FAILURE TO
ESTABLISH AN INDEPENDENT NOMINATING COMMITTEE, AND
FOR FAILURE TO ESTABLISH A MAJORITY INDEPENDENT
BOARD. WE ALSO RECOMMEND THAT SHAREHOLDERS WITHHOLD
VOTES FROM JOHN C. MALONE, BARRY DILLER, VICTOR A.
KAUFMAN, DARA KHOSROWSHAHI, AND SIMON J. BREAKWELL
FOR FAILURE TO ESTABLISH AN INDEPENDENT NOMINATING
COMMITTEE AND FOR FAILURE TO ESTABLISH A MAJORITY
INDEPENDENT BOARD.
1.2 Elect Director Simon J. Breakwell --- Withhold
1.3 Elect Director Barry Diller --- Withhold
1.4 Elect Director Jonathan L. Dolgen --- For
1.5 Elect Director William R. Fitzgerald --- Withhold
1.6 Elect Director David Goldhill --- For
1.7 Elect Director Victor A. Kaufman --- Withhold
1.8 Elect Director Peter M. Kern --- For
1.9 Elect Director Dara Khosrowshahi --- Withhold
1.10 Elect Director John C. Malone --- Withhold
2 Amend Omnibus Stock Plan For For Mgmt
III. VOTE RECOMMENDATION ISS GENERALLY RECOMMENDS
THAT SHAREHOLDERS VOTE FOR AMENDMENTS TO ADD
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 14
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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PERFORMANCE GOALS TO EXISTING COMPENSATION PLANS TO
COMPLY WITH THE PROVISIONS OF SECTION 162(M).
3 Ratify Auditors For For Mgmt
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03/22/07 - A F5 NETWORKS, INC. *FFIV* 315616102 01/16/07 53,700
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
1.1 Elect Director Deborah L. Bevier --- For
IN LIGHT OF THE COMPANY'S DEVELOPMENT AND ADOPTION OF
NUMEROUS, EXTENSIVE POLICIES, PROCEDURES, AND
CONTROLS OVER THE GRANTING OF AND ACCOUNTING FOR
EQUITY AWARDS, ISS BELIEVES MANAGEMENT HAS TAKEN
ADEQUATE STEPS TO RECTIFY THE COMPANY'S INTERNAL
CONTROL OVER FINANCIAL REPORTING WITH RESPECT TO
STOCK-BASED COMPENSATION. ACCORDINGLY, ISS DOES NOT
BELIEVE THAT WITHHOLDING VOTES FROM COMPENSATION
COMMITTEE MEMBERS IS WARRANTED.
1.2 Elect Director Alan J. Higginson --- For
1.3 Elect Director John Mcadam --- For
2 Amend Omnibus Stock Plan For For Mgmt
VI. VOTE RECOMMENDATION THE ESTIMATED
SHAREHOLDER VALUE TRANSFER OF THE COMPANY'S PLANS OF
11 PERCENT IS EQUAL TO THE ALLOWABLE CAP FOR THIS
COMPANY OF 11 PERCENT. ADDITIONALLY, THIS PLAN
EXPRESSLY FORBIDS REPRICING.
3 Ratify Auditors For For Mgmt
4 Pay For Superior Performance Against For ShrHoldr
WHILE THE COMPANY'S ANNUAL AND LONG-TERM EXECUTIVE
COMPENSATION PROGRAMS ARE SUBSTANTIALLY
PERFORMANCE-BASED, THE COMPANY FAILS TO PROVIDE
SHAREHOLDERS WITH THE NECESSARY DISCLOSURE
(PERFORMANCE MEASURES AND PERFORMANCE TARGETS) TO
EFFECTIVELY MONITOR THE PAY-FOR-PERFORMANCE STANDARD
ESTABLISHED BY MANAGEMENT. ACCORDINGLY, ISS BELIEVES
THAT SHAREHOLDER SUPPORT FOR THIS PROPOSAL IS
WARRANTED.
- ----------------------------------------------------------------------------------------------------------------------------------
10/20/06 - A FOCUS MEDIA HLDG LTD *FMCN* 34415V109 08/28/06 68,360
- ----------------------------------------------------------------------------------------------------------------------------------
MEETING FOR ADR HOLDERS
1 ELECTION OF THE DIRECTOR: DAVID FENG YU. For For Mgmt
2 ELECTION OF THE DIRECTOR: CHARLES CHAO. For For Mgmt
3 ELECTION OF THE DIRECTOR: DAQING QI. For For Mgmt
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 15
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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4 APPROVAL TO INCREASE THE MAXIMUM NUMBER OF For For Mgmt
DIRECTORS TO THIRTEEN (13), AS SET FORTH
IN THE COMPANY S NOTICE OF MEETING
ENCLOSED HEREWITH.
5 APPROVAL OF THE 2006 EMPLOYEE SHARE OPTION For For Mgmt
PLAN AND THE AUTHORIZATION OF OFFICERS TO
ALLOT, ISSUE OR DELIVER SHARES PURSUANT TO
THE 2006 EMPLOYEE SHARE OPTION PLAN, AS
SET FORTH IN THE COMPANY S NOTICE OF
MEETING ENCLOSED HEREWITH.
V. VOTE RECOMMENDATION THE TOTAL COST OF THE
COMPANY'S PLANS OF 13.42 PERCENT IS WITHIN THE
ALLOWABLE CAP FOR THIS COMPANY OF 20.81 PERCENT.
6 Ratify Auditors For For Mgmt
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11/13/06 - S FREESCALE SEMICONDUCTOR, INC. 35687M107 10/18/06 852,985
- ----------------------------------------------------------------------------------------------------------------------------------
1 Approve Merger Agreement For For Mgmt
WE BELIEVE THAT THE COMPANY WAS ABLE TO SECURE A
SIGNIFICANT PREMIUM, AIDED BY KKR/SLP'S LAST MINUTE
OFFER. ADDITIONALLY, WE THINK THAT THE BOARD'S
DECISION TO ACCEPT THE FIRM OFFER FROM BLACKSTONE WAS
REASONABLE, GIVEN THE PRELIMINARY NATURE OF KKR/SLP'S
OFFER, THE TIME CONSTRAINTS SET BY BLACKSTONE, AND
THE "GO SHOP" PERIOD INCLUDED IN THE AGREEMENT. AS
SUCH, WE RECOMMEND SHAREHOLDERS SUPPORT THE MERGER
AGREEMENT.
2 Adjourn Meeting For For Mgmt
WHERE ISS IS SUPPORTIVE OF THE UNDERLYING MERGER
PROPOSAL, WE ARE SUPPORTIVE OF A NARROWLY-TAILORED
ADJOURNMENT PROPOSAL THAT SEEKS ADJOURNMENT SOLELY TO
SOLICIT ADDITIONAL PROXIES TO APPROVE THE
TRANSACTION.
- ----------------------------------------------------------------------------------------------------------------------------------
05/09/07 - A GILEAD SCIENCES, INC. *GILD* 375558103 03/22/07 222,393
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Split Mgmt
1.1 Elect Director Paul Berg --- For
ISS RECOMMENDS THAT SHAREHOLDERS VOTE FOR ALL
DIRECTOR NOMINEES WITH THE EXCEPTION OF ETIENNE F.
DAVIGNON. ISS RECOMMENDS THAT SHAREHOLDERS VOTES
AGAINST ETIENNE F. DAVIGNON FOR SITTING ON MORE THAN
SIX PUBLIC BOARDS.
1.2 Elect Director John F. Cogan --- For
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 16
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
1.3 Elect Director Etienne F. Davignon ---
Withhold
1.4 Elect Director James M. Denny --- For
1.5 Elect Director Carla A. Hills --- For
1.6 Elect Director John W. Madigan --- For
1.7 Elect Director John C. Martin --- For
1.8 Elect Director Gordon E. Moore --- For
1.9 Elect Director Nicholas Moore --- For
1.10 Elect Director Gayle E. Wilson --- For
2 Ratify Auditors For For Mgmt
3 Amend Omnibus Stock Plan For For Mgmt
VI. VOTE RECOMMENDATION THE ESTIMATED
SHAREHOLDER VALUE TRANSFER OF THE COMPANY'S PLANS OF
9 PERCENT IS EQUAL TO THE ALLOWABLE CAP FOR THIS
COMPANY OF 9 PERCENT. ADDITIONALLY, THIS PLAN
EXPRESSLY FORBIDS REPRICING.
4 Amend Qualified Employee Stock Purchase For For Mgmt
Plan
ISS APPROVES OF THIS ITEM BECAUSE THE PLAN COMPLIES
WITH SECTION 423 OF THE INTERNAL REVENUE CODE, THE
NUMBER OF SHARES BEING ADDED IS RELATIVELY
CONSERVATIVE, AND THE OFFERING PERIOD IS REASONABLE.
- ----------------------------------------------------------------------------------------------------------------------------------
03/14/07 - A HEWLETT-PACKARD CO. *HPQ* 428236103 01/16/07 399,024
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Director L.T. Babbio, Jr. For For Mgmt
2 Elect Director S.M. Baldauf For For Mgmt
3 Elect Director R.A. Hackborn For For Mgmt
4 Elect Director J.H. Hammergren For For Mgmt
5 Elect Director M.V. Hurd For For Mgmt
6 Elect Director R.L. Ryan For For Mgmt
7 Elect Director L.S. Salhany For For Mgmt
8 Elect Director G.K. Thompson For For Mgmt
9 Ratify Auditors For For Mgmt
10 Require Director Nominee Qualifications Against For ShrHoldr
PROXY ACCESS IS A TOOL THAT WILL ENABLE INVESTORS TO
FULFILL THEIR OWNERSHIP RESPONSIBILITIES WHILE
IMPROVING BOARD ACCOUNTABILITY. WE BELIEVE THAT THIS
PROXY ACCESS PROPOSAL ALLOWS SIGNIFICANT SHAREHOLDERS
AN OPPORTUNITY TO PARTICIPATE IN THE NOMINATION
PROCESS, WHILE SAFEGUARDING THE PROCESS, THE BOARD,
AND THE INTERESTS OF ALL SHAREHOLDERS. ISS BELIEVES
THAT SUPPORT FOR THIS BALLOT ACCESS PROPOSAL
REPRESENTS A SIGNIFICANT AND POSITIVE STEP IN THE
DIRECTOR ELECTION PROCESS. THE REFORM IS NEEDED TO
RIGHT A STEEPLY TILTED PLAYING FIELD ON WHICH
MANAGEMENT AND BOARD INCUMBENTS DOMINATE THE ELECTION
PROCESS. THIS
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 17
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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PROPOSAL AFFORDS SHAREHOLDERS AN OPPORTUNITY TO
EFFECT REFORMS ON THE NOMINATION PROCESS. BASED ON
THE FUNDAMENTAL NEED FOR A MORE EFFECTIVE AND
MEANINGFUL DIRECTOR ELECTION PROCESS AND GIVEN THE
ADEQUATE PROVISIONS OF THIS PROPOSAL, WE BELIEVE THAT
SUPPORT FOR THIS RESOLUTION IS WARRANTED.
11 Separate Chairman and CEO Positions Against Against ShrHoldr
IN THIS CASE, THE COMPANY MEETS ALL OF THE CRITERIA
IN THE COUNTERBALANCING STRUCTURE DESCRIBED ABOVE. WE
BELIEVE THAT THE COMPANY'S GOVERNANCE
STRUCTURE PROVIDES A SATISFACTORY BALANCE TO A
UNIFIED CHAIRMAN AND CEO POSITION. ACCORDINGLY, THE
PROPOSAL DOES NOT WARRANT SHAREHOLDER SUPPORT.
12 Submit Shareholder Rights Plan (Poison Against For ShrHoldr
Pill) to Shareholder Vote
IN THIS CASE, H-P HAS NOT INCLUDED IN THEIR FIDUCIARY
OUT POLICY THE STIPULATION THAT THE PLAN MUST BE
SUBMITTED TO A SHAREHOLDER VOTE WITHIN 12 MONTHS OF
ADOPTION. WHILE THE BOARD BELIEVES THIS POLICY
RESPONDS DIRECTLY TO STOCKHOLDERS' CONCERNS, ISS
BELIEVES THAT IT STILL LEAVES TO THE BOARD THE
DECISION TO PROCEED WITH THE ADOPTION OF A PILL
WITHOUT SHAREHOLDER APPROVAL AND DOES NOT HAVE A
SUNSET PROVISION IN CASE THE PILL WAS NOT APPROVED BY
SHAREHOLDERS. THEREFORE, WE DO NOT BELIEVE THAT H-P'S
POLICY SUBSTANTIALLY ADDRESSES THE ISSUES RAISED BY
THE SHAREHOLDER PROPOSAL. WE RECOMMEND A VOTE FOR
THIS ITEM.
13 Performance-Based Equity Awards Against For ShrHoldr
GIVEN THAT: (1) THE COMPANY'S LONG-TERM EQUITY
COMPENSATION PROGRAM FOR SENIOR EXECUTIVES IS NOT
PERFORMANCE-BASED ACCORDING TO ISS' GUIDELINES AND;
(2) THIS PROPOSAL IS NOT OVERLY RESTRICTIVE; WE
BELIEVE THIS ITEM WARRANTS SHAREHOLDER SUPPORT.
- ----------------------------------------------------------------------------------------------------------------------------------
05/29/07 - A I2 TECHNOLOGIES, INC. *ITWO* 465754208 04/02/07 259,160
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Split Mgmt
1.1 Elect Director Stephen P. Bradley --- For
WE RECOMMEND THAT SHAREHOLDERS VOTE FOR STEPHEN P.
BRADLEY, BUT WITHHOLD VOTES FROM INDEPENDENT OUTSIDER
RICHARD L. CLEMMER. WE RECOMMEND THAT SHAREHOLDERS
WITHHOLD VOTES FROM RICHARD L. CLEMMER FOR POOR
ATTENDANCE.
1.2 Elect Director Richard L. Clemmer --- Withhold
2 Amend Omnibus Stock Plan For Against Mgmt
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 18
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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VI. VOTE RECOMMENDATION THE ESTIMATED
SHAREHOLDER VALUE TRANSFER OF THE COMPANY'S PLANS OF
86 PERCENT IS ABOVE THE ALLOWABLE CAP FOR THIS
COMPANY OF 15 PERCENT. ADDITIONALLY, THIS COMPANY HAS
REPRICED STOCK OPTIONS WITHOUT SHAREHOLDER APPROVAL
IN THE PAST. THE PLAN ALLOWS REPRICING OF UNDERWATER
STOCK OPTIONS WITHOUT SHAREHOLDER APPROVAL, WHICH WE
BELIEVE REDUCES THE INCENTIVE VALUE OF THE PLAN.
MOREOVER, THE COMPANY'S THREE-YEAR AVERAGE BURN RATE
OF 9.43 PERCENT IS HIGHER THAN ITS FOUR-DIGIT GICS
PEER GROUP OF 5.82 PERCENT. THEREFORE, THE COMPANY
HAS FAILED ISS'S THREE-YEAR AVERAGE BURN RATE POLICY.
- ----------------------------------------------------------------------------------------------------------------------------------
05/17/07 - A INFORMATICA CORPORATION *INFA* 45666Q102 03/30/07 361,620
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
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03/29/07 - A KLA-TENCOR CORP. *KLAC* 482480100 02/15/07 351,090
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
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11/02/06 - A LAM RESEARCH CORP. *LRCX* 512807108 09/15/06 17,320
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Approve/Amend Executive Incentive Bonus For For Mgmt
Plan
THE PERFORMANCE MEASURES INCLUDED UNDER THE PLAN ARE
APPROPRIATE FOR THE COMPANY GIVEN ITS LINE OF
BUSINESS, LONG-TERM STRATEGIC OBJECTIVES, AND
INDUSTRY-SPECIFIC MEASURES FOR ASSESSING MARKET
COMPETITIVENESS. ADDITIONALLY, THE PLAN IS
ADMINISTERED BY A COMMITTEE OF INDEPENDENT OUTSIDERS
WHO MUST CERTIFY ATTAINMENT OF THESE OBJECTIVE,
MEASURABLE PERFORMANCE GOALS BEFORE CASH AWARDS ARE
PAID TO PARTICIPANTS. MOREOVER, PRESERVATION OF THE
FULL DEDUCTIBILITY OF ALL COMPENSATION PAID REDUCES
THE COMPANY'S CORPORATE TAX OBLIGATION.
3 Approve Omnibus Stock Plan For For Mgmt
V. VOTE RECOMMENDATION THE TOTAL COST OF THE
COMPANY'S PLANS OF 11.40 PERCENT IS WITHIN THE
ALLOWABLE CAP FOR THIS COMPANY OF 12.60 PERCENT.
ADDITIONALLY, THIS PLAN EXPRESSLY FORBIDS REPRICING.
4 Ratify Auditors For For Mgmt
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Mgmt Rec - Company Management Recommended Vote Page 19
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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05/18/07 - A MANHATTAN ASSOCIATES, INC. *MANH* 562750109 03/30/07 354,224
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Approve Omnibus Stock Plan For For Mgmt
VI. VOTE RECOMMENDATION THE ESTIMATED
SHAREHOLDER VALUE TRANSFER OF THE COMPANY'S PLANS OF
14 PERCENT IS LESS THAN THE ALLOWABLE CAP FOR THIS
COMPANY OF 16 PERCENT. ADDITIONALLY, THIS PLAN
EXPRESSLY FORBIDS REPRICING. THE COMPANY'S
THREE-YEAR AVERAGE BURN RATE OF 6.03 PERCENT IS
HIGHER THAN ITS FOUR-DIGIT GICS PEER GROUP OF 5.82
PERCENT. THEREFORE, THE COMPANY HAS FAILED
ISS'S THREE-YEAR AVERAGE BURN RATE POLICY.
HOWEVER, THE COMPANY HAS MADE A THREE-YEAR BURN RATE
COMMITMENT EQUAL TO ITS GICS PEER GROUP OF 5.82
PERCENT. THEREFORE, ISS WILL CONTINUE TO MONITOR THE
AWARDS GRANTED TO ITS PARTICIPANTS.
3 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
05/24/07 - A MICREL, INC. *MCRL* 594793101 03/30/07 325,920
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
3 Other Business For Against Mgmt
AS WE CANNOT KNOW THE CONTENT OF THESE ISSUES, WE DO
NOT RECOMMEND THAT SHAREHOLDERS APPROVE THIS REQUEST.
- ----------------------------------------------------------------------------------------------------------------------------------
11/08/06 - S MSYSTEMS LTD (FORMERLY M-SYSTEMS M7061C100 10/03/06 207,592
FLASH DISK PIONEER)
- ----------------------------------------------------------------------------------------------------------------------------------
MEETING FOR ADR HOLDERS
1 APPROVAL OF THE AGREEMENT AND PLAN OF For For Mgmt
MERGER, DATED AS OF JULY 30, 2006, AMONG
MSYSTEMS LTD., SANDISK CORPORATION AND
PROJECT DESERT LTD. AND APPROVAL OF THE
MERGER OF PROJECT DESERT INTO MSYSTEMS
UNDER THE PROVISIONS OF THE ISRAELI
COMPANIES LAW, SO THA
CONCLUSION: BASED ON CAREFUL ANALYSIS IN VALUATION
AND RATIONALE, ISS BELIEVES THAT THIS MERGER WARRANTS
SHAREHOLDER SUPPORT.
2 APPROVAL OF THE PAYMENT TO For For Mgmt
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 20
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
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MR. GURION MELTZER, CHAIRMAN OF THE
BOARD OF DIRECTORS OF MSYSTEMS SINCE
SEPTEMBER 2006, OF COMPENSATION IN THE
AMOUNT OF US$ 10,000 PER MONTH, IN
CONSIDERATION FOR HIS SERVICES AS
CHAIRMAN OF THE BOARD
3 APPROVAL OF THE PAYMENT TO MR. YOSSI For For Mgmt
BEN-SHALOM, A MEMBER OF THE BOARD OF
DIRECTORS OF MSYSTEMS WHO HAS BEEN
PROVIDING CONSULTING SERVICES TO MSYSTEMS
SINCE OCTOBER 2005, OF COMPENSATION IN THE
AMOUNT OF NIS 12,500 PER MONTH
4 APPROVAL OF THE GRANT TO MR. YOSSI For Against Mgmt
BEN-SHALOM, AS ADDITIONAL COMPENSATION FOR
THE CONSULTING SERVICES PROVIDED BY HIM TO
MSYSTEMS, OF OPTIONS TO PURCHASE 10,000
ORDINARY SHARES OF MSYSTEMS
GIVEN THE EXCESSIVE 18.6-PERCENT DILUTION ASSOCIATED
WITH THE COMPANY'S OPTION PLANS, THIS REQUEST DOES
NOT MERIT SUPPORT.
5 APPROVAL OF THE PAYMENT TO MS. ZEHAVA For For Mgmt
SIMON, A MEMBER OF THE BOARD OF DIRECTORS
OF MSYSTEMS OF COMPENSATION IN THE AMOUNT
OF US$30,000 FOR SUCH SERVICES, ALL AS MORE
FULLY DESCRIBED IN THE PROXY STATEMENT.
- ----------------------------------------------------------------------------------------------------------------------------------
06/21/07 - A NVIDIA CORPORATION *NVDA* 67066G104 04/23/07 147,400
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Split Mgmt
1.1 Elect Director James C. Gaither --- Withhold
THE COMPENSATION COMMITTEE IS CHARGED WITH
ADMINISTERING THE COMPANY'S STOCK OPTION PLANS,
INCLUDING THE STOCK OPTION BACKDATING PERIOD.
HISTORICALLY, THE COMPENSATION COMMITTEE HAS
DELEGATED AUTHORITY FOR STOCK OPTION AWARDS TO
EMPLOYEES BELOW THE EXECUTIVE STAFF LEVEL TO THE CEO.
MR. COXE AND MR. JONES WERE MEMBERS OF THE
COMPENSATION COMMITTEE IN FISCAL YEARS 2000 - 2002
AND MR. GAITHER IN 2001 - 2002. DUE TO THE CLASSIFIED
BOARD STRUCTURE, ONLY MR. GAITHER IS UP FOR
RE-ELECTION.
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 21
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
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AA XANTHUS FUND LLC
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THEREFORE, ISS RECOMMENDS A VOTE TO WITHHOLD FROM MR.
GAITHER DUE TO THE LACK OF OVERSIGHT REGARDING THE
HISTORICAL ADMINISTRATION OF STOCK OPTION PLANS, AS
WELL AS THE LACK OF DETAIL REGARDING GRANT TIMING AND
AUTHORITY AS DETAILED ABOVE. ISS IS NOT RECOMMENDING
A WITHHOLD VOTE FOR THE CEO, MR. HUANG, BECAUSE THE
ADMINISTRATION OF THE STOCK OPTION PLANS RESIDES WITH
THE COMPENSATION COMMITTEE.
1.2 Elect Director Jen-Hsun Huang --- For
1.3 Elect Director A. Brooke Seawell --- For
2 Approve Omnibus Stock Plan For Against Mgmt
VI. VOTE RECOMMENDATION COMPANY RESPONSE DURING
THE DRAFT REVIEW PERIOD, THE COMPANY PROVIDED
COMMENTS IN RESPONSE TO ISS' VOTE RECOMMENDATION. IN
THE PAST TWO YEARS NVIDIA HAS PRODUCED A 167 % RETURN
FOR ITS STOCKHOLDERS. DUE TO THIS APPRECIATION AND A
BELIEF IN THE COMPANY'S FUTURE, AS OF APRIL 6,
2007, NVIDIA EMPLOYEES HELD A TOTAL OF 40,490,539
OPTIONS THAT WERE VESTED, EXERCISED AND
"IN-THE-MONEY", REPRESENTING OVER 99% OF ALL VESTED
OPTIONS AT THAT DATE. OF THESE VESTED, EXERCISED AND
"IN-THE-MONEY" OPTIONS, APPROXIMATELY 69.2% WERE HELD
BY RANK AND FILE EMPLOYEES. NVIDIA BELIEVES THAT IF
SUCH VESTED IN-THE-MONEY OPTIONS WERE TREATED THE
SAME AS OUTSTANDING STOCK, NVIDIA WOULD BE WITHIN THE
ALLOWABLE CAP FOR ITS INDUSTRY. NVIDIA'S BOARD
AND MANAGEMENT BELIEVES THAT AN EMPLOYEE HOLDING SUCH
VESTED, IN-THE-MONEY OPTIONS IS DEMONSTRATING
CONFIDENCE IN THE COMPANY AND SHOULD BE TREATED AS
THOUGH THAT EMPLOYEE HAD DECIDED TO HOLD STOCK IN THE
COMPANY. LIKE ANY STOCKHOLDER, SUCH EMPLOYEE COULD
EXERCISE AND SELL THE STOCK, BUT BY HOLDING IS
EXPRESSING CONFIDENCE IN THE COMPANY'S FUTURE
PROSPECTS. NVIDIA'S BOARD AND MANAGEMENT
BELIEVES THAT ANY POLICY THAT ANY POLICY THAT VALUES
SELLING OF STOCK BY EMPLOYEES AND MANAGEMENT OVER
HOLDING SUCH SHARES IS NOT CONSISTENT WITH DEVELOPING
LONG TERM SHAREHOLDER VALUE AND RETURNS. IT IS THE
STRONGLY HELD BELIEF OF THE NVIDIA'S BOARD AND
MANAGEMENT THAT EMPLOYEES HOLDING VESTED,
"IN-THE-MONEY" OPTIONS IS NOT ADVERSE TO THE
INTERESTS OF SHAREHOLDERS AND DEMONSTRATES CONFIDENCE
IN THE COMPANY. ISS POSITION WE COMMEND THE COMPANY
FOR EXPRESSLY FORBIDDING THE REPRICING OF STOCK
OPTIONS UNDER THE PLAN. HOWEVER, THE ESTIMATED
SHAREHOLDER VALUE TRANSFER OF THE COMPANY'S PLANS OF
19 PERCENT EXCEEDS OUR ALLOWABLE CAP FOR THIS
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 22
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
COMPANY OF 12 PERCENT.
3 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
05/16/07 - A ON SEMICONDUCTOR 682189105 03/20/07 2,268,730
CORPORATION *ONNN*
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Split Mgmt
1.1 Elect Director J. Daniel McCranie --- Withhold
WE RECOMMEND A VOTE FOR EMMANUEL T. HERNANDEZ BUT
WITHHOLD VOTES FROM ALL THE OTHER NOMINEES. WE
RECOMMEND THAT SHAREHOLDERS WITHHOLD VOTES FROM
AFFILIATED OUTSIDER OUTSIDER KEVIN R. BURNS FOR POOR
ATTENDANCE AND FROM INDEPENDENT OUTSIDER J. DANIEL
MCCRANIE FOR SITTING ON MORE THAN THREE BOARDS.
1.2 Elect Director Kevin R. Burns --- Withhold
1.3 Elect Director Emmanuel T. Hernandez --- For
2 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
11/08/06 - A OPLINK COMMUNICATIONS, INC. 68375Q403 09/20/06 207,471
*OPLK*
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
3 Reduce Authorized Preferred Stock For For Mgmt
WE BELIEVE THIS PROPOSAL IS IN SHAREHOLDERS' BEST
INTERESTS BECAUSE IT WOULD LIMIT FUTURE DILUTION OF
THEIR INVESTMENT AND PROVIDE SOME COST SAVINGS TO THE
COMPANY.
- ----------------------------------------------------------------------------------------------------------------------------------
03/13/07 - A QUALCOMM INC. *QCOM* 747525103 01/12/07 285,810
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
05/24/07 - A SAFEGUARD SCIENTIFICS, INC. *SFE* 786449108 04/02/07 1,571,700
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
05/24/07 - A SANDISK CORP. *SNDK* 80004C101 03/27/07 132,340
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Withhold Mgmt
1.1 Elect Director Eli Harari --- Withhold
WE RECOMMEND WITHHOLDING VOTES FROM ALL THE
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 23
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
NOMINEES. WE RECOMMEND THAT SHAREHOLDER WITHHOLD
VOTES FROM INDEPENDENT OUTSIDERS IRWIN FEDERMAN,
JAMES D. MEINDL, CATHERINE P. LEGO, MICHAEL E. MARKS,
STEVEN J. GOMO, EDDY W. HARTENSTEIN, AND INSIDER DR.
ELI HARARI FOR FAILURE TO SUBMIT THE COMPANY'S POISON
PILL TO A SHAREHOLDER VOTE.
1.2 Elect Director Irwin Federman --- Withhold
1.3 Elect Director Steven J. Gomo --- Withhold
1.4 Elect Director Eddy W. Hartenstein --- Withhold
1.5 Elect Director Catherine P. Lego --- Withhold
1.6 Elect Director Michael E. Marks --- Withhold
1.7 Elect Director James D. Meindl --- Withhold
2 Ratify Auditors For For Mgmt
3 Performance-Based Equity Awards Against For ShrHoldr
GIVEN THAT: 1) THE COMPANY'S LONG-TERM EQUITY
COMPENSATION PROGRAM FOR SENIOR EXECUTIVES IS NOT
SIGNIFICANTLY PERFORMANCE-BASED ACCORDING TO ISS'
GUIDELINES; AND 2) THIS PROPOSAL IS NOT OVERLY
RESTRICTIVE; WE BELIEVE THIS ITEM WARRANTS
SHAREHOLDER SUPPORT.
- ----------------------------------------------------------------------------------------------------------------------------------
05/09/07 - A SERVICE CORPORATION 817565104 03/15/07 463,820
INTERNATIONAL *SCI*
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
3 Amend Omnibus Stock Plan For For Mgmt
THE ESTIMATED SHAREHOLDER VALUE TRANSFER OF THE
COMPANY'S PLANS OF 4 PERCENT IS LESS THAN THE
ALLOWABLE CAP FOR THIS COMPANY OF 9 PERCENT.
- ----------------------------------------------------------------------------------------------------------------------------------
10/25/06 - A SHANDA INTERACTIVE ENTERTAINMENT 81941Q203 09/14/06 115,520
LIMITED *SNDA*
- ----------------------------------------------------------------------------------------------------------------------------------
1 ELECT THE FOLLOWING DIRECTOR TO SERVE FOR For Against Mgmt
THE ENSUING YEAR: CHEN TIANQIAO
IT IS RECOMMENDED THAT SHAREHOLDERS VOTE FOR
INDEPENDENT NON-EXECUTIVE DIRECTORS XIONG, HUANG, AND
WU. SHAREHOLDERS ARE ADVISED TO VOTE AGAINST
EXECUTIVES T. CHEN AND LUO FOR STANDING AS EXECUTIVE
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 24
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
DIRECTORS ON THE COMPANY'S COMPENSATION COMMITTEE AND
FOR FAILURE TO ESTABLISH AN INDEPENDENT NOMINATING
COMMITTEE, AND TO VOTE AGAINST EXECUTIVE DIRECTORS
TANG, D. CHEN, TAN, AND ZHANG FOR FAILURE TO
ESTABLISH AN INDEPENDENT NOMINATING COMMITTEE.
2 ELECT THE FOLLOWING DIRECTOR TO SERVE FOR For Against Mgmt
THE ENSUING YEAR: TANG JUN
3 ELECT THE FOLLOWING DIRECTOR TO SERVE FOR For Against Mgmt
THE ENSUING YEAR: CHEN DANIAN
4 ELECT THE FOLLOWING DIRECTOR TO SERVE FOR For Against Mgmt
THE ENSUING YEAR: LUO QIANQIAN
5 ELECT THE FOLLOWING DIRECTOR TO SERVE FOR For For Mgmt
THE ENSUING YEAR: XIONG CHENGYU
6 ELECT THE FOLLOWING DIRECTOR TO SERVE FOR For For Mgmt
THE ENSUING YEAR: HUANG JINGSHENG
7 ELECT THE FOLLOWING DIRECTOR TO SERVE FOR For For Mgmt
THE ENSUING YEAR: BRUNO WU
8 ELECT THE FOLLOWING DIRECTOR TO SERVE FOR For Against Mgmt
THE ENSUING YEAR: TAN QUNZHAO
9 ELECT THE FOLLOWING DIRECTOR TO SERVE FOR For Against Mgmt
THE ENSUING YEAR: ZHANG YONG
- ----------------------------------------------------------------------------------------------------------------------------------
06/29/07 - A SINA CORP. (FORMERLY SINA.COM) G81477104 05/14/07 492,279
*SINA*
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
3 APPROVAL OF THE 2007 SHARE INCENTIVE PLAN For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
04/26/07 - A SPSS INC. *SPSS* 78462K102 03/12/07 252,620
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
06/14/07 - A SUPERGEN, INC. *SUPG* 868059106 04/26/07 69,856
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Split Mgmt
1.1 Elect Director James S.J. Manuso, --- For
WE RECOMMEND A VOTE FOR THE DIRECTORS WITH THE
EXCEPTION OF INDEPENDENT OUTSIDER THOMAS V. GIRARDI.
WE RECOMMEND THAT SHAREHOLDERS WITHHOLD VOTES
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 25
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
FROM THOMAS V. GIRARDI FOR POOR ATTENDANCE.
1.2 Elect Director Charles J. Casamento, --- For
1.3 Elect Director Thomas V. Girardi, --- Withhold
1.4 Elect Director Allan R. Goldberg, --- For
1.5 Elect Director Walter J. Lack, --- For
1.6 Elect Director Michael D. Young --- For
2 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
10/17/06 - A SYNAPTICS, INC. *SYNA* 87157D109 09/01/06 196,080
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
06/15/07 - A SYNTEL, INC. *SYNT* 87162H103 05/25/07 162,260
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
05/07/07 - A TAIWAN SEMICONDUCTOR 874039100 03/09/07 233,970
MANUFACTURING Co.
- ----------------------------------------------------------------------------------------------------------------------------------
MEETING FOR HOLDERS OF ADRS
1 TO ACCEPT 2006 BUSINESS REPORT AND For For Mgmt
FINANCIAL STATEMENTS.
2 TO APPROVE THE PROPOSAL FOR DISTRIBUTION OF For For Mgmt
2006 PROFITS.
3 TO APPROVE THE CAPITALIZATION OF 2006 For For Mgmt
DIVIDENDS, 2006 EMPLOYEE PROFIT SHARING,
AND CAPITAL SURPLUS.
4 TO APPROVE REVISIONS TO THE ARTICLES OF For For Mgmt
INCORPORATION.
5 TO APPROVE REVISIONS TO INTERNAL POLICIES For For Mgmt
AND RULES AS FOLLOWS: (1) PROCEDURES FOR
ACQUISITION OR DISPOSAL OF ASSETS; (2)
POLICIES AND PROCEDURES FOR FINANCIAL
DERIVATIVES TRANSACTIONS; (3) PROCEDURES
FOR LENDING FUNDS TO OTHER PARTIES; (4)
PROCEDURES FOR
- ----------------------------------------------------------------------------------------------------------------------------------
06/07/07 - A TALEO CORPORATION *TLEO* 87424N104 04/20/07 463,723
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For For Mgmt
2 Ratify Auditors For For Mgmt
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 26
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
05/17/07 - A TESSERA TECHNOLOGIES, INC. 88164L100 03/26/07 610,118
*TSRA*
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Split Mgmt
1.1 Elect Director Robert J. Boehlke --- For
WE RECOMMEND A VOTE FOR THE DIRECTORS WITH THE
EXCEPTION OF INDEPENDENT OUTSIDER JOHN B. GOODRICH.
WE RECOMMEND THAT SHAREHOLDERS WITHHOLD VOTES FROM
JOHN B. GOODRICH FOR POOR ATTENDANCE.
1.2 Elect Director John B. Goodrich --- Withhold
1.3 Elect Director Al S. Joseph, Ph.D. --- For
1.4 Elect Director Bruce M. McWilliams, Ph.D. --- For
1.5 Elect Director David C. Nagel, Ph.D. --- For
1.6 Elect Director Henry R. Nothhaft --- For
1.7 Elect Director Robert A. Young, Ph.D. --- For
2 Approve Executive Incentive Bonus Plan For For Mgmt
THE PERFORMANCE MEASURES INCLUDED UNDER THE PLAN ARE
APPROPRIATE FOR THE COMPANY GIVEN ITS LINE OF
BUSINESS, LONG-TERM STRATEGIC OBJECTIVES, AND
INDUSTRY-SPECIFIC MEASURES FOR ASSESSING MARKET
COMPETITIVENESS. ADDITIONALLY, THE PLAN IS
ADMINISTERED BY A COMMITTEE OF INDEPENDENT OUTSIDERS
WHO MUST CERTIFY ATTAINMENT OF THESE OBJECTIVE,
MEASURABLE PERFORMANCE GOALS BEFORE CASH AWARDS ARE
PAID TO PARTICIPANTS. MOREOVER, PRESERVATION OF THE
FULL DEDUCTIBILITY OF ALL COMPENSATION PAID REDUCES
THE COMPANY'S CORPORATE TAX OBLIGATION.
3 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
04/19/07 - A TEXAS INSTRUMENTS INC. *TXN* 882508104 02/20/07 172,660
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Director James R. Adams For For Mgmt
THEREFORE, IN LIGHT OF THE COMPANY'S NEGATIVE
STOCK PERFORMANCE, ISS BELIEVES THAT THERE IS A
DISCONNECT BETWEEN PAY AND PERFORMANCE AND RECOMMENDS
A VOTE AGAINST ALL OF THE DIRECTOR NOMINEES WHO
CURRENTLY SIT ON THE COMPENSATION COMMITTEE. WE
RECOMMEND THAT SHAREHOLDERS VOTE AGAINST COMPENSATION
COMMITTEE MEMBERS DANIEL A. CARP, RUTH J. SIMMONS AND
CHRISTINE TODD
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 27
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
WHITMAN FOR THE DISCONNECT BETWEEN COMPANY'S STOCK
PERFORMANCE AND THE CEO'S COMPENSATION.
2 Elect Director David L. Boren For For Mgmt
3 Elect Director Daniel A. Carp For Against Mgmt
4 Elect Director Carrie S. Cox For For Mgmt
5 Elect Director Thomas J. Engibous For For Mgmt
6 Elect Director David R. Goode For For Mgmt
7 Elect Director Pamela H. Patsley For For Mgmt
8 Elect Director Wayne R. Sanders For For Mgmt
9 Elect Director Ruth J. Simmons For Against Mgmt
10 Elect Director Richard K. Templeton For For Mgmt
11 Elect Director Christine Todd Whitman For Against Mgmt
12 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
05/17/07 - A TRIMBLE NAVIGATION LTD. *TRMB* 896239100 03/19/07 115,970
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Split Mgmt
1.1 Elect Director Steven W. Berglund --- For
WE RECOMMEND A VOTE FOR THE DIRECTORS WITH THE
EXCEPTION OF AFFILIATED OUTSIDER BRADFORD W.
PARKINSON. WE RECOMMEND THAT SHAREHOLDERS WITHHOLD
VOTES FROM BRADFORD W. PARKINSON FOR STANDING AS AN
AFFILIATED OUTSIDER ON THE AUDIT COMMITTEE.
1.2 Elect Director Robert S. Cooper --- For
1.3 Elect Director John B. Goodrich --- For
1.4 Elect Director William Hart --- For
1.5 Elect Director Ulf J. Johansson --- For
1.6 Elect Director Bradford W. Parkinson --- Withhold
1.7 Elect Director Nickolas W. Vande Steeg --- For
2 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
05/30/07 - A VOLTERRA SEMICONDUCTOR CORP 928708106 04/02/07 273,972
*VLTR*
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Directors For Split Mgmt
1.1 Elect Director Alan King --- Withhold
WE RECOMMEND A VOTE FOR THE DIRECTORS WITH THE
EXCEPTION OF AFFILIATED OUTSIDER ALAN KING. WE
RECOMMEND THAT SHAREHOLDERS WITHHOLD VOTES FROM ALAN
KING FOR STANDING AS AN AFFILIATED OUTSIDER ON THE
NOMINATING COMMITTEE.
1.2 Elect Director Jeffrey Staszak --- For
1.3 Elect Director Edward Winn --- For
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 28
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
2 Amend Non-Employee Director Stock Option For Against Mgmt
Plan
THE ESTIMATED SHAREHOLDER VALUE TRANSFER OF THE
COMPANY'S PLANS OF 64 PERCENTIS ABOVE THE ALLOWABLE
CAP FOR THIS COMPANY OF 14 PERCENT. IN 2005, ISS
IMPLEMENTED A MODIFIED POLICY IN EVALUATING DIRECTOR
EQUITY PLANS. ISS CONSIDERS THE COSTS OF EQUITY PLANS
INCLUDING DIRECTOR PLANS AND EMPLOYEE-BASED
COMPENSATION PLANS IN THE BINOMIAL COMPENSATION
MODEL. IF THE TOTAL COSTS OF THE COMBINED EQUITY
PLANS EXCEED THE ALLOWABLE CAP, ISS WILL REVIEW THE
QUALITATIVE FEATURES OF DIRECTOR COMPENSATION, TAKING
INTO ACCOUNT (I) DIRECTOR STOCK OWNERSHIP GUIDELINES
(II) VESTING SCHEDULE (III) MIX BETWEEN CASH AND
EQUITY (IV) RETIREMENT/BENEFIT AND PERQUISITES
PROGRAMS (V) QUALITY OF DISCLOSURE. IN THIS CASE, THE
COMBINED COSTS OF THE 2004 NON-EMPLOYEE DIRECTORS'
STOCK OPTION PLAN AND THE REMAINING EQUITY PLANS
AVAILABLE FOR GRANT EXCEED THE ALLOWABLE CAP OF 14
PERCENT. IN REVIEWING THE QUALITATIVE FEATURES OF
DIRECTOR COMPENSATION OF VOLTERRA SEMICONDUCTOR
CORPORATION, ISS NOTES THAT THE DIRECTORS ARE PAID A
RELATIVELY BALANCED MIX OF CASH AND EQUITY
COMPENSATION. THE COMPANY ALSO PROVIDES A TABULAR
DISCLOSURE ON TOTAL COMPENSATION DELIVERED TO EACH
NON-EMPLOYEE DIRECTOR FOR THE MOST RECENT FISCAL
YEAR. IN ADDITION, DURING 2006 NONE OF THE DIRECTORS
PARTICIPATED IN ANY PENSION OR RETIREMENT/BENEFITS
AND PERQUISITES PROGRAMS, OTHER THAN ANTHONY
STRATAKOS, WHO SERVES AS VICE PRESIDENT AND CHIEF
TECHNOLOGY OFFICER OF THE COMPANY. HIS ALL OTHER
COMPENSATION AMOUNTED TO $221,054, DUE TO HIS 2006
SALARY AS AN EMPLOYEE OF THE COMPANY, EQUAL TO
$188,116, AND CASH PAYMENTS UNDER THE
COMPANY'S 2006 MANAGEMENT BONUS PLAN, EQUAL TO
$32,938. HOWEVER, ISS NOTES THAT THE VESTING SCHEDULE
FOR OPTIONS GRANTED UNDER THE NON-EMPLOYEE
DIRECTORS' STOCK OPTION PLAN PROVIDES THAT ALL
ANNUAL OPTIONS VEST ON THE DAY PRIOR TO THE FIRST
ANNIVERSARY OF THE DATE OF GRANT. ISS LOOKS FOR A
MINIMUM VESTING OF THREE YEARS FOR STOCK OPTIONS OR
RESTRICTED STOCK. ADDITIONALLY, THERE IS NO
DISCLOSURE OF DIRECTOR STOCK OWNERSHIP GUIDELINES.
ISS LOOKS FOR A MINIMUM OF THREE TIMES THE ANNUAL
CASH RETAINER.
3 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
05/15/07 - A XTO ENERGY INC *XTO* 98385X106 03/30/07 24,440
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Director Lane G. Collins For For Mgmt
2 Elect Director Scott G. Sherman For For Mgmt
3 Elect Director Bob R. Simpson For For Mgmt
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 29
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
4 Ratify Auditors For For Mgmt
- ----------------------------------------------------------------------------------------------------------------------------------
06/12/07 - A YAHOO!, INC. *YHOO* 984332106 04/16/07 270,520
- ----------------------------------------------------------------------------------------------------------------------------------
1 Elect Director Terry S. Semel For For Mgmt
BASED ON THE ABOVE ANALYSIS, IT APPEARS THAT CEO
SEMEL IS REWARDED WHEN TIMES ARE GOOD - PAY FOR
PERFORMANCE, AND WHEN TIMES ARE BAD - RETENTION. ISS
QUESTIONS HOW MUCH MORE INCENTIVIZING CAN MEGA OPTION
GRANTS PROVIDE TO CEO SEMEL WHEN HE HAS RECEIVED AND
ACCUMULATED SIGNIFICANT WEALTH FROM EXERCISING YAHOO
STOCK. WHILE THE RATIONALE IS DISCLOSED FOR THE SIX
MILLION RETENTION OPTIONS, SHAREHOLDERS ARE NOT
PROVIDED WITH SUFFICIENT INSIGHT AS HOW THIS NUMBER
IS REASONABLE. THEREFORE, ISS RECOMMENDS VOTING
AGAINST FROM THE COMPENSATION COMMITTEE MEMBERS:
ARTHUR KERN, ROY BOSTOCK AND RONALD BURKLE. ISS
FURTHER NOTES THAT RONALD BURKLE IS ALSO A
COMPENSATION COMMITTEE AT TWO OTHER PUBLICLY-TRADED
COMPANIES, KB HOMES AND OCCIDENTAL PETROLEUM, WHERE
CEO PAY HAS BEEN RAISED AS ISSUES.
2 Elect Director Jerry Yang For For Mgmt
3 Elect Director Roy J. Bostock For Against Mgmt
4 Elect Director Ronald W. Burkle For Against Mgmt
5 Elect Director Eric Hippeau For For Mgmt
6 Elect Director Vyomesh Joshi For For Mgmt
7 Elect Director Arthur H. Kern For Against Mgmt
8 Elect Director Robert A. Kotick For For Mgmt
9 Elect Director Edward R. Kozel For For Mgmt
10 Elect Director Gary L. Wilson For For Mgmt
11 Amend Omnibus Stock Plan For For Mgmt
VI. VOTE RECOMMENDATION THE ESTIMATED
SHAREHOLDER VALUE TRANSFER OF THE COMPANY'S PLANS OF
11 PERCENT IS EQUAL TO OR LESS THAN THE ALLOWABLE CAP
FOR THIS COMPANY OF 11 PERCENT. ADDITIONALLY, THIS
PLAN EXPRESSLY FORBIDS REPRICING.
12 Amend Qualified Employee Stock Purchase For For Mgmt
Plan
ISS APPROVES OF THIS ITEM BECAUSE THE PLAN COMPLIES
WITH SECTION 423 OF THE INTERNAL REVENUE CODE, THE
NUMBER OF SHARES BEING ADDED IS RELATIVELY
CONSERVATIVE, THE OFFERING PERIOD IS REASONABLE, AND
THERE ARE LIMITATIONS ON PARTICIPATION.
13 Ratify Auditors For For Mgmt
14 Pay For Superior Performance Against For ShrHoldr
IN THIS CASE, THE COMPANY'S ANNUAL AND
LONG-TERM COMPENSATION PROGRAMS FOR SENIOR EXECUTIVES
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 30
VOTE SUMMARY REPORT
Jul 01, 2006 - Jun 30, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
AA XANTHUS FUND LLC
- ----------------------------------------------------------------------------------------------------------------------------------
Mtg Company/ Mgmt Vote Record Shares
Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted
- ----------------------------------------------------------------------------------------------------------------------------------
ARE NOT SUBSTANTIALLY PERFORMANCE-BASED UNDER CURRENT
ISS GUIDELINES. FURTHER, THE COMPANY DOES NOT
DISCLOSE SPECIFIC PERFORMANCE MEASURES AND HURDLES
RATES FOR PERFORMANCE-BASED AWARD GRANTS TO SENIOR
EXECUTIVES, WHICH DENIES SHAREHOLDER THE ABILITY TO
MONITOR THE CORRELATION BETWEEN EXECUTIVE PAY AND
PERFORMANCE. ACCORDINGLY, ISS BELIEVES SHAREHOLDERS
SHOULD SUPPORT THIS PROPOSAL.
15 Adopt Policies to Protect Freedom of Against For ShrHoldr
Access to the Internet
THEREFORE, BASED ON YAHOO'S LACK OF AN
EXISTING FORMAL HUMAN RIGHTS POLICY RELATED TO
INTERNET MONITORING AND CENSORSHIP, AND GIVEN THE
IMPACT THAT THESE ISSUES MAY HAVE ON THE COMPANY, WE
RECOMMEND SHAREHOLDER SUPPORT FOR THIS RESOLUTION.
16 Amend Bylaws to Establish a Board Committee Against Against ShrHoldr
on Human Rights
THAT SAID, WE ALSO AGREE THAT A COMPANY'S
MANAGEMENT IS OFTEN IN THE BEST POSITION TO EVALUATE
THE DAY TO DAY IMPACT THAT COMPANY POLICIES MAY HAVE
ON OPERATIONAL EFFICIENCY AND PROFITABILITY.
THEREFORE, ISS WILL CONTINUE TO MONITOR
YAHOO'S ACTIVITIES RELATED TO HUMAN RIGHTS AND
MAY CONSIDER SUPPORTING BYLAW CHANGES TO CREATE A
BOARD COMMITTEE ON HUMAN RIGHTS IN THE FUTURE IF THE
COMPANY FAILS TO IMPROVE UPON ITS DISCLOSURE RELATED
TO THIS TOPIC. HOWEVER BASED ON YAHOO'S
CURRENT COMMITMENT TO ADDRESS THESE ISSUES WE DO NOT
BELIEVE THAT THE REQUESTED BYLAW CHANGES ARE
WARRANTED AT THIS TIME.
- --------------------------------------------------------------------------------
Mgmt Rec - Company Management Recommended Vote Page 31
SIGNATURES
Pursuant to the requirements of the Investment Company Act of 1940, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Registrant Advantage Advisers Xanthus Fund, LLC
-----------------------------------------------------------
By (Signature and Title)* /s/ Bryan McKigney
--------------------------------------------
Bryan McKigney, Principal Executive Officer
(Principal Executive Officer)
Date AUGUST 29, 2007
-----------------------------------------------------------------
*Print the name and title of each signing officer under his or her signature.