The Directed Account Plan Board of Directors adopted a policy that allows a maximum 20% target allocation to any actively managed equity fund. This new policy required an adjustment to the target allocations in the International Stock Option, effective 12/6/04, as follows:
| American Century International Growth | 20% |
| American Century International Discovery | 20% |
| First Eagle Overseas | 18% |
| Longleaf Partners International | 12% |
| Templeton Instl. Foreign Equity | 20% |
| BGI EAFE Index | 10% |
State Street Research Aurora S was terminated from the Diversified Small Company Stock Option on 12/6/04. The change was due to a recent ownership transfer at State Street Research and the reorganization of company and our portfolio management. The assets of this option were reallocated as follows:
| Franklin Small Cap Growth II | 20% |
| Royce Opportunity | 15% |
| Dimensional US Micro-Cap Portfolio | 15% |
| Janus Small Cap Value Instl. | 20% |
| BGI Small Company Index | 30% |
It is anticipated that the allocation to BGI Small Company index will be reduced when a small cap growth manager search is completed. The BGI Small Company Index tracks the Russell 2000 Total Index.