ANNUAL REPORT 23 st Annual Executive Strategic Planning

ANNUAL REPORT 23 st Annual Executive Strategic Planning Conference October 2009

By the Numbers • The Numbers – 875, 000 domestic business entities • 275, 000 corporations • 600, 000 alternative business entities – 648, 000 active UCC statements • Market Share – 63% of Fortune 500 – 87% of all new U. S. IPOs since January 2003 – 7% of new domestic business entities • LLCs (9%); LPs (25%); Statutory Trusts (90%) – 1 business entity per capita

The Headlines • Markell Wins Delaware Governor’s Race – Fox News – November 4, 2008 • Markell Makes 3 More Picks for Cabinet – WBOC-TV – January 13, 2009 • Delaware Quality Award recipients honored at UD – University of Delaware Daily – February 9, 2009 • “Put Delaware, Wyoming, Nevada on G 20 Tax Haven List”: Luxembourg Prime Minister – EU Business – March 31, 2009 • Stalled IPO Market Shows Signs of Life – CNN Money – April 6, 2009 • Delaware Legislature Addresses Shareholder Access – Metropolitan Corporate Counsel – May 4, 2009 • Delaware House OKs Budget Cuts, Tax Initiatives – Dover Post – June 30, 2009 • Another Sarbanes-Oxley: Threatening Small Business with the “Beneficial” Ownership Bill – Wall Street Journal - Opinion - October 13, 2009

State and Local Revenues Fiscal Year 2007 – 2010 Forecast Actual FY 2007 FY 2008 Actual FY 2009 Forecast FY 2010 622. 4 665. 1 705. 2 743. 2 Business Entity Fees 65. 5 63. 4 50. 8 73. 0 UCC Fees 13. 0 13. 6 11. 2 12. 6 Expedited Revenue 24. 4 24. 0 18. 2 17. 0 Local Gov’t Revenue Sharing 12. 4 10. 6 10. 0 $737. 7 $778. 5 $796. 0 $855. 8 6. 4% 5. 5% 2. 2% 7. 5% Entity Taxes (net of refunds) TOTALS % GROWTH

ANNUAL REPORT Questions & Discussion