John Hancock Patriot Premium Dividend Fund
II
As an investor in the John Hancock Patriot Premium Dividend Fund II, you are cordially invited to attend the annual shareholder meeting on
Monday, March 31, 2008, at 2:00 P.M., Eastern Time, to be held at John Hancock Funds, 601 Congress Street, Boston, Massachusetts
02210-2805.
The proposal set forth in the enclosed proxy statement is a
routine item. A routine item is one that occurs annually and makes no fundamental or material changes to a funds investment objectives, policies
or restrictions, or to the investment management contracts.
Elect your funds Board of Trustees
The proposal asks common shareholders to elect two Trustees and
preferred shareholders to elect one Trustee to serve until their respective successors are elected and qualified. Your proxy statement includes a brief
description of each nominees background.
Your vote is important!
Please complete the enclosed proxy ballot form, sign it and mail
it to us immediately. For your convenience, a postage-paid return envelope has been provided. Your prompt response will help avoid the cost of
additional mailings at your funds expense.
If you have any questions, please call 1-800-852-0218, Monday
through Friday, between 9:00 A.M. and 7:00 p.m., Eastern Time.
Thank you in advance for your prompt action on this very
important matter.
Keith F. Hartstein
Chief Executive
Officer
JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II
601
Congress Street, Boston, Massachusetts 02210
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
To Be Held on
March 31, 2008
This is the formal agenda for your funds shareholder
meeting. It tells you what matters will be voted on and the time and place of the meeting, in case you want to attend in person.
To the Shareholders of John Hancock Patriot Premium Dividend Fund
II:
A shareholder meeting will be held at 601 Congress Street,
Boston, Massachusetts 02110, on Monday, March 31, 2008, at 2:00 P.M., Eastern Time, to consider the following:
(1) |
|
To elect Trustees to serve until their respective successors are
duly elected and qualified. Common shareholders may elect two Trustees and preferred shareholders may elect one Trustee. |
(2) |
|
To transact such other business as may properly come before the
meeting or any adjournment of the meeting. |
Your Trustees recommend that you vote in favor of the
proposal.
Shareholders of record as of the close of business on January 24,
2008, are entitled to notice of and to vote at the funds annual meeting and at any related follow-up meeting. The proxy statement and proxy card
are being mailed to shareholders on or about February 7, 2008.
Whether or not you expect to attend the meeting, please
complete and return the enclosed proxy in the accompanying envelope. No postage is necessary if mailed in the United States.
By order of the Board of
Trustees,
Thomas M.
Kinzler
Corporate Secretary
February 7, 2008
JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II
601
Congress Street, Boston, Massachusetts 02210
ANNUAL MEETING OF SHAREHOLDERS
To Be Held on March 31,
2008
PROXY STATEMENT
This proxy statement contains the
information you should know before voting on the proposal described in the notice. The fund will furnish without charge a copy of its Annual
Report to any shareholder upon request. If you would like a copy of your funds report, please send a written request to the attention of the fund
at 601 Congress Street, Boston, MA 02210 or call John Hancock Funds at 1-800-892-9552.
This proxy statement is being used by
the funds Trustees to solicit proxies to be voted at the annual meeting of the funds shareholders. The meeting will be held at 601 Congress
Street, Boston, Massachusetts, on Monday March 31, 2008, at 2:00 P.M., Eastern Time.
|
|
John Hancock Patriot Premium Dividend Fund II (Patriot
Premium II); |
If you sign the enclosed proxy card and
return it in time to be voted at the meeting, your shares will be voted in accordance with your instructions. Signed proxies with no instructions will
be voted FOR the proposal. If you want to revoke your proxy, you may do so before it is exercised at the meeting by filing a written notice of
revocation with the fund at 601 Congress Street, Boston, Massachusetts 02210, by returning a signed proxy with a later date before the meeting or, if
attending the meeting and voting in person, by notifying your funds secretary (without complying with any formalities) at any time before your
proxy is voted.
Record Ownership
The Trustees have fixed the close of
business on January 24, 2008 as the record date to determine which shareholders are entitled to vote at the meeting. Common and preferred shareholders
are entitled to one vote per share on all business of the meeting or any postponement of the meeting. On the record date, the following number of
shares of beneficial interest of the fund were outstanding:
Fund
|
|
Common Shares
|
|
Preferred Shares
|
Patriot
Premium II |
|
|
56,222,940 |
|
|
|
3,510 |
|
The funds management does not
know of anyone who beneficially owned more than 5% of either class of the funds shares outstanding as of the record date, except for the Commerce
Group, Inc., 211 Main Street, Webster, MA 01570 who owned 24.5% of the common shares. (Beneficial ownership means voting power and/or investment power,
which includes the power to dispose of shares.)
1
PROPOSAL ONE
ELECTION OF TRUSTEES
(Common shares and preferred shares of the fund)
General
The funds Board of Trustees
consists of seven members. Holders of the common shares are entitled to elect five Trustees and holders of the preferred shares are entitled to elect
two Trustees. Messrs. Boyle, Carlin, Cunningham, Ladner, and Pruchansky have been designated as subject to election by holders of the common shares of
the fund. Mr. Moore and Ms. McGill Peterson have been designated as subject to election by holders of the preferred shares of the
fund.
The Board is divided into three
staggered term classes; one class containing three Trustees and two classes containing two Trustees each. The term of one class expires each year, and
no term continues for more than three years after the applicable election. Each Trustee in a class will stand for re-election at the conclusion of his
or her respective three-year term. Classifying the Trustees in this manner may prevent replacement of a majority of the Trustees for up to a two-year
period.
As of the date of this proxy, each
nominee for election currently serves as a Trustee of the fund. Using the enclosed proxy card, you may authorize the proxies to vote your shares for
the nominees representing your shares or you may withhold from the proxies authority to vote your shares for one or more of the nominees representing
your shares. If no contrary instructions are given, the proxies will vote FOR the nominees. Each of the nominees has consented to his or her nomination
and has agreed to serve if elected. If, for any reason, any nominee should not be available for election or able to serve as a Trustee, the proxies
will exercise their voting power in favor of such substitute nominee, if any, as the funds Trustees may designate. The fund has no reason to
believe that it will be necessary to designate a substitute nominee.
Proposal
Messrs. Carlin and Cunningham are the
current nominees for election by the common shareholders. Mr. Moore is the current nominee for the election by the preferred
shareholders.
Vote Required For Proposal
The vote of a plurality of the votes
cast by the common shares and the preferred shares of the fund is sufficient to elect the common shares and the preferred shares nominees to
serve as Trustees of the fund.
2
Information Concerning Trustees
The following table sets forth certain
information regarding the nominees for election to the Board. The table also shows his or her principal occupation or employment and other
directorships during the past five years and the number of John Hancock funds overseen by the Trustee. The table also lists the Trustees who are not
currently standing for election: The term of Mr. Ladner will expire at the 2009 annual meeting and the terms of Messrs. Boyle and Pruchansky and Ms.
McGill Peterson will expire at the 2010 annual meeting.
Name, (Year of Birth), Address(1) and Position with the Fund
|
|
|
|
Principal Occupation(s) and other Directorships
during the Past Five Years
|
|
Trustee Since
|
|
Number of John Hancock Funds Overseen
|
|
|
|
|
|
NOMINEES STANDING FOR ELECTION TERM TO EXPIRE IN 2011
|
|
|
|
|
|
|
|
James F.
Carlin (1940) Interim Chairman and Independent Trustee |
|
|
|
Director and Treasurer, Alpha Analytical Inc. (chemical analysis) (since 1985); Part Owner and Treasurer, Lawrence Carlin Insurance Agency,
Inc. (since 1995); Part Owner and Vice President, Mone Lawrence Carlin Insurance Agency, Inc. (until 2005); Chairman and CEO, Carlin Consolidated, Inc.
(management/investments) (since 1987); Trustee, Massachusetts Health and Education Tax Exempt Trust (1993 2003). |
|
1989 |
|
|
55 |
|
|
William H.
Cunningham (1944) Independent Trustee |
|
|
|
Former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman and CEO, IBT
Technologies (until 2001). Director of the following: Hicks Acquisition Company I, Inc. (since 2007); Lincoln National Corporation (insurance) (since
2006); Hayes Lemmerz International, Inc. (diversified automotive parts supply company) (since 2003); Advisory Director, J.P. Morgan-Chase Bank
(formerly Texas Commerce Bank Austin); Symtx, Inc. (electronic manufacturing) (since 2001); Southwest Airlines (since 2000); and Introgen
(manufacturer of biopharmaceuticals) (since 2000). Former Director of the following: LIN Television (until 2008); Jefferson-Pilot Corporation
(diversified life insurance company) (until 2006); Adorno/Rogers Technology, Inc. (until 2004); Hire.com (until 2004); Pinnacle Foods Corporation
(until 2003); Advisory Director, Q Investments (until 2003); rateGenius (until 2003); Viasystems Group, Inc. (electronic manufacturer) (until 2003);
WilTel Communications (until 2003); Agile Ventures (until 2001); AskRed.com (until 2001); ClassMap.com (until 2001); eCertain (until 2001); New Century
Equity Holdings (formerly Billing Concepts) (until 2001); STC Broadcasting, Inc. and Sunrise Television Corp. (until 2001). |
|
1994 |
|
|
55 |
|
|
|
|
|
|
NOMINEE STANDING FOR ELECTION TERM TO EXPIRE IN 2009
|
|
|
|
|
|
|
|
John A.
Moore (1939) Independent Trustee |
|
|
|
President and Chief Executive Officer, Institute for Evaluating Health Risks (nonprofit institution) (until 2001); Senior Scientist, Sciences
International (health research) (until 2003); Former Assistant Administrator, Environmental Protection Agency, Principal, Hollyhouse (consulting)
(since 2000); Director, CIIT (nonprofit research) (since 2002). |
|
2002 |
|
|
55 |
|
3
Name, (Year of Birth), Address(1) and Position with the Fund
|
|
|
|
Principal Occupation(s) and other Directorships
during the Past Five Years
|
|
Trustee Since
|
|
Number of John Hancock Funds Overseen
|
|
|
|
|
|
TRUSTEES NOT STANDING FOR ELECTION TERM TO EXPIRE IN 2009
|
|
|
|
|
|
|
|
Charles L.
Ladner (1938) Independent Trustee |
|
|
|
Chairman and Trustee, Dunwoody Village, Inc. (retirement services) (until 2003); Senior Vice President and Chief Financial Officer, UGI
Corporation (public utility holding company) (retired 1998); Vice President and Director, AmeriGas, Inc. (retired 1998); Director, AmeriGas Partners,
L.P. (gas distribution) (until 1997); Director, EnergyNorth, Inc. (until 1997); Director, Parks and History Association (until 2007). |
|
1992 |
|
|
55 |
|
|
|
|
|
|
TRUSTEES NOT STANDING FOR ELECTION TERM TO EXPIRE IN 2010
|
|
|
|
|
|
|
|
James R.
Boyle* (1959) Non-Independent Trustee |
|
|
|
Executive Vice President, Manulife Financial Corporation (since 1999); President, John Hancock Variable Life Insurance Company (March 2007 to
Present); Executive Vice President, John Hancock Life Insurance Company (since June 2004); Chairman and Director, John Hancock Advisers, LLC (the
Adviser), The Berkeley Financial Group, LLC (The Berkeley Group) (holding company) and John Hancock Funds, LLC (since 2005);
Senior Vice President, The Manufacturers Life Insurance Company (U.S.A.) (until 2004). |
|
2005 |
|
|
265 |
|
|
Patti McGill
Peterson (1943) Independent Trustee |
|
|
|
Senior Associate, Institute for Higher Education Policy (since 2007); Executive Director, Council for International Exchange of Scholars and
Vice President, Institute of International Education (until 2007); Senior Fellow, Cornell Institute of Public Affairs, Cornell University (until 1998);
Former President of Wells College, Aurora, New York and St. Lawrence University, Canton, NY; Director, Niagara Mohawk Power Corporation (until 2003);
Director, Ford Foundation, International Fellowships Program (since 2002); Director, Lois Roth Endowment (since 2002); Director, Council for
International Exchange (since 2003). |
|
2002 |
|
|
55 |
|
|
Steven R.
Pruchansky (1944) Independent Trustee |
|
|
|
Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2000); Director and President, Greenscapes of Southwest
Florida, Inc. (until 2000); Managing Director, JonJames, LLC (real estate) (since 2001); Director, First Signature Bank & Trust Company (until
1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). |
|
1992 |
|
|
55 |
|
* |
|
Interested person, as defined in the Investment
Company Act of 1940, as amended (the 1940 Act), of the funds and the Adviser. |
|
|
Trustee representing the holders of the preferred shares. Mr.
Moore has been designated as such a trustee following the death of a previous such designee, Mr. Dion. |
4
Executive Officers
The table below lists the funds
executive officers.
Name, (Year of Birth), Address(1) and Position with the Fund
|
|
|
|
Principal Occupation(s) and other Directorships during
Past Five Years
|
|
Keith F. Hartstein
(1956) President and Chief Executive Officer |
|
|
|
Senior Vice
President, Manulife Financial Corporation (since 2004); Director, President and Chief Executive Officer, the Adviser, The Berkeley Group, John Hancock
Funds, LLC (since 2005); Director of the following: MFC Global Investment Management (U.S.), LLC (MFC Global (U.S.)) (since 2005), and John
Hancock Signature Services, Inc. (Signature Services) (since 2005). Director, Chairman and President, NM Capital Management, Inc. (since
2005); President and Chief Executive Officer of the following: John Hancock Investment Management Services, LLC (JHIMS) (since 2006), John
Hancock Funds (JHF), John Hancock Funds II (JHF II), John Hancock Funds III (JHF III) and John Hancock Trust
(JHT) (since 2005); Member, Investment Company Institute Sales Force Marketing Committee (since 2003); Director, President and Chief
Executive Officer, MFC Global (U.S.) (2005 2006); Executive Vice President, John Hancock Funds, LLC (until 2005). |
|
Thomas M. Kinzler
(1955) Secretary and Chief Legal Officer |
|
|
|
Vice President
and Counsel, John Hancock Life Insurance Company (U.S.A.) (since 2006); Secretary and Chief Legal Officer, JHF and JHF III (since 2006); Secretary, JHF
II and Assistant Secretary, JHT (since June 2007); Vice President and Associate General Counsel for Massachusetts Mutual Life Insurance Company (1999
2006); Secretary and Chief Legal Counsel, MML Series Investment Fund (2000 2006); Secretary and Chief Legal Counsel, MassMutual
Institutional Funds (2000 2004); Secretary and Chief Legal Counsel, MassMutual Select Funds and MassMutual Premier Funds (2004
2006). |
|
Francis V. Knox, Jr.
(1947) Chief Compliance Officer |
|
|
|
Vice President
and Chief Compliance Officer, JHIMS, the Adviser and MFC Global (U.S.) (since 2005); Vice President and Chief Compliance Officer, JHF, JHF II, JHF III
and JHT (since 2005); Vice President and Assistant Treasurer, Fidelity Group of Funds (until 2004); Vice President and Ethics & Compliance Officer,
Fidelity Investments (until 2001). |
|
Charles A. Rizzo
(1957) Chief Financial Officer |
|
|
|
Chief Financial
Officer, JHF, JHF II, JHF III and JHT (since June 2007); Assistant Treasurer, Goldman Sachs Mutual Fund Complex (registered investment companies) (2005
June 2007); Vice President, Goldman Sachs (2005 June 2007); Managing Director and Treasurer of Scudder Funds, Deutsche Asset Management
(2003 2005); Director, Tax and Financial Reporting, Deutsche Asset Management (2002 2003); Vice President and Treasurer, Deutsche Global
Fund Services (1999 2002). |
|
Gordon M. Shone
(1956) Treasurer |
|
|
|
Senior Vice
President, John Hancock Life Insurance Company (U.S.A.) (since 2001); Treasurer, JHF (since 2006); JHF II, JHF III and JHT (since 2005); Vice President
and Chief Financial Officer, JHT (2003 2005); Vice President, John Hancock Investment Management Services, Inc., John Hancock Advisers, LLC
(since 2006) and The Manufacturers Life Insurance Company (U.S.A.) (1998 2000). |
5
Name, (Year of Birth), Address(1) and Position with the Fund
|
|
|
|
Principal Occupation(s) and other Directorships during
Past Five Years
|
|
John G. Vrysen
(1955) Chief Operating Officer |
|
|
|
Senior Vice
President, Manulife Financial Corporation (since 2006); Director, Executive Vice President and Chief Operating Officer, the Adviser, The Berkeley Group
and John Hancock Funds, LLC (since June 2007); Chief Operating Officer, JHF, JHF II, JHF III, and JHT (since June 2007); Executive Vice President and
Chief Financial Officer, the Adviser, The Berkeley Group and John Hancock Funds, LLC (2005 until June 2007); Executive Vice President and Chief
Financial Officer, John Hancock Investment Management Services, LLC (2005 to 2007), Vice President and Chief Financial Officer, MFC Global (U.S.)
(since 2005); Director, Signature Services (since 2005); Chief Financial Officer, JHF, JHF II, JHF III and JHT (2005 June 2007); Vice President
and General Manager, John Hancock Fixed Annuities, U.S. Wealth Management (until 2005); Vice President, Operations Manulife Wood Logan (2000
2004). |
(1) |
|
Business address all Trustees and officers is 601 Congress
Street, Boston, Massachusetts 02210-2805. |
The Board currently has four standing
Committees: the Audit and Compliance Committee, the Governance Committee, the Contracts/Operations Committee and the Investment Performance Committee.
Each Committee is comprised of Independent Trustees who are not interested persons.
The current membership of each
Committee and the anticipated membership if the nominees are elected, is set forth below.
Audit and Compliance
|
|
Governance
|
|
Contracts/Operations
|
|
Investment Performance
|
Messrs. Ladner,
Moore and Ms. McGill Peterson |
|
All Independent
Trustees |
|
Messrs.
Carlin, Cunningham, and Pruchansky |
|
All Independent
Trustees |
All members of the funds Audit
and Compliance Committee are Independent under the Revised Listing Rules of the New York Stock Exchange (the NYSE), and each member is
financially literate with at least one having accounting or financial management expertise. The Board has adopted a written charter for the Audit and
Compliance Committee, which is included as Attachment 1 to this proxy statement. The Audit and Compliance Committee recommends to the full Board the
appointment of the independent registered public accounting firm for the fund, monitors and oversees the audits of the fund, communicates with both the
independent registered public accounting firm and internal auditors on a regular basis and provides a forum for the independent registered public
accounting firm to report and discuss any matters it deems appropriate at any time. The Audit and Compliance Committee reports that it has (1) reviewed
and discussed the funds audited financial statements with management; (2) discussed with the independent registered public accounting firm the
matters relating to the quality of the funds financial reporting as required by SAS 61; (3) received written disclosures and an independence
letter from the independent registered public accounting firm required by Independent Standards Board Standard No. 1 and discussed with the independent
registered public accounting firm its independence; and (4) based on these discussions, recommended to the Board that the funds financial
statements be included in the funds annual report for the last fiscal year (see Attachment 2).
All of the Independent Trustees are
members of the Governance Committee. The Governance Committee reviews the activities of the other three standing committees and makes the final
selection and nomination of candidates to serve as Independent Trustees. All members of the Governance Committee are independent under the NYSEs
Revised Listing Rules and are Independent Trustees. The Board has adopted a written charter for the Governance Committee, which is included as
Attachment 3 to this proxy statement. The Governance Committee selects and nominates for elections candidates for Independent Trustees. The Trustees
who are not Independent Trustees and the officers of the fund are nominated and selected by the Board.
In reviewing a potential nominee and in
evaluating the renomination of current Independent Trustees, the Governance Committee expects to apply the following criteria: (i) the nominees
reputation for integrity, honesty and adherence to high ethical standards, (ii) the nominees business acumen, experience and ability to exercise
sound judgments, (iii) a commitment to understand the fund and the responsibilities of a trustee of an investment company, (iv) a commitment to
regularly attend and participate in meetings of the Board and its Committees,
6
(v) the ability to understand
potential conflicts of interest involving management of the fund and to act in the interests of all shareholders, and (vi) the absence of a real or
apparent conflict of interest that would impair the nominees ability to represent the interests of all the shareholders and to fulfill the
responsibilities of an Independent Trustee. The Governance Committee does not necessarily place the same emphasis on each criterion and each nominee
may not have each of these qualities. The Governance Committee does not discriminate on the basis of race, religion, national origin, sex, sexual
orientation, disability or any other basis proscribed by law.
As long as an existing Independent
Trustee continues, in the opinion of the Governance Committee, to satisfy these criteria, the fund anticipates that the Committee would favor the
renomination of an existing Trustee rather than a new candidate. Consequently, while the Governance Committee will consider nominees recommended by
shareholders to serve as Trustees, the Governance Committee may only act upon such recommendations if there is a vacancy on the Board or the Governance
Committee determines that the selection of a new or additional Independent Trustee is in the best interests of the fund. In the event that a vacancy
arises or a change in Board membership is determined to be advisable, the Governance Committee will, in addition to any shareholder recommendations,
consider candidates identified by other means, including candidates proposed by members of the Governance Committee. While it has not done so in the
past, the Governance Committee may retain a consultant to assist the Committee in a search for a qualified candidate.
Any shareholder recommendation must be
submitted in compliance with all of the pertinent provisions of Rule 14a-8 under the Securities Exchange Act of 1934 (the Exchange Act), as
amended, to be considered by the Governance Committee. In evaluating a nominee recommended by a shareholder, the Governance Committee, in addition to
the criteria discussed above, may consider the objectives of the shareholder in submitting that nomination and whether such objectives are consistent
with the interests of all shareholders. If the Board determines to include a shareholders candidate among the slate of nominees, the
candidates name will be placed on the funds proxy card. If the Governance Committee or the Board determines not to include such candidate
among the Boards designated nominees and the shareholder has satisfied the requirements of Rule 14a-8 , the shareholders candidate will be
treated as a nominee of the shareholder who originally nominated the candidate. In that case, the candidate will not be named on the proxy card
distributed with the funds proxy statement. Each of the nominees for election as Trustee was recommended by the Governance
Committee.
Shareholders may communicate with the
members of the Board as a group or individually. Any such communication should be sent to the Board or an individual Trustee in care of the secretary
of the fund at the address on the notice of this meeting. The Secretary may determine not to forward any letter to the members of the Board that does
not relate to the business of the fund.
The Contracts/Operations Committee
oversees the initiation, operation, and renewal of the various contracts between the fund and other entities. These contracts include advisory,
custodial and transfer agency agreements and arrangements with other service providers.
The Investment Performance Committee
monitors and analyzes the performance of the fund generally, consults with the Adviser as necessary if a fund is considered to require special
attention, and reviews fund peer groups and other comparative standards as necessary.
The Board and each Committee held five
meetings during the funds fiscal year. With respect to the fund, no Trustee attended fewer than 75% of the aggregate of (1) the total number of
Board meetings of the fund; and (2) the total number of meetings held by all Committees on which they served. The fund holds joint meetings of the
Trustees and all Committees.
7
Trustee Ownership
The following table provides a dollar
range indicating each Trustees ownership of equity securities of the fund as well as aggregate holdings of shares of equity securities of all
John Hancock Funds overseen by the Trustee, as of December 31, 2007.
Trustee Holdings(1)
|
|
|
|
Patriot Premium II
|
|
All John Hancock funds overseen
|
|
Name of Trustee
|
|
|
|
Shares
|
|
Dollar Range
|
|
Dollar Range
|
Independent
Trustees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
James F.
Carlin |
|
|
|
|
1,593 |
|
|
$ |
10,001 $50,000 |
|
|
|
Over $100,000 |
|
William H.
Cunningham |
|
|
|
|
|
|
|
|
|
|
|
|
Over $100,000 |
|
Charles L.
Ladner |
|
|
|
|
1,302 |
|
|
$ |
10,001 $50,000 |
|
|
|
Over $100,000 |
|
John A.
Moore |
|
|
|
|
485 |
|
|
|
$1 $10,000 |
|
|
|
Over $100,000 |
|
Patti McGill
Peterson |
|
|
|
|
485 |
|
|
|
$1 $10,000 |
|
|
|
Over $100,000 |
|
Steven R.
Pruchansky |
|
|
|
|
500 |
|
|
|
$1 $10,000 |
|
|
|
Over $100,000 |
|
|
Non-Independent Trustee |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
James R.
Boyle |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
The amounts reflect the aggregate dollar range of equity
securities beneficially owned by the Trustees in the fund and in all John Hancock funds overseen by each Trustee. For each Trustee, the amounts
reflected include share equivalents of certain John Hancock funds in which the Trustee is deemed to be invested pursuant to the Deferred Compensation
Plan for Independent Trustees, as more fully described under Remuneration of Trustees and Officers. The information as to beneficial
ownership is based on statements furnished to the fund by the Trustees. Each of the Trustees has all voting and investment powers with respect to the
shares indicated. None of the Trustees beneficially owned individually, and the Trustees and executive officers of the fund did not beneficially own,
in excess of one percent of the outstanding shares of the fund. |
Compliance with Section 16(a) Reporting
Requirements
Section 16(a) of the Exchange Act
requires a funds executive officers, Trustees and persons who own more than 10% of a funds shares (the 10% Shareholders) to
file reports of ownership and changes in ownership with the Securities and Exchange Commission (the SEC). Executive officers, Trustees and
10% Shareholders are also required by SEC regulations to furnish the fund with copies of all Section 16(a) forms they file. Based solely on a review of
the copies of these reports furnished to the fund and representations that no other reports were required to be filed, the fund believes that during
the past fiscal year its executive officers, Trustees and 10% Shareholders complied with all applicable Section 16(a) filing
requirements.
8
Remuneration of Trustees and Officers
The following table provides
information regarding the compensation paid by the fund and the other investment companies in the John Hancock fund complex to the Independent Trustees
for their services for the funds most recently completed fiscal year. Any non-Independent Trustees and each of the officers of the fund are
interested persons of the Adviser, are compensated by the Adviser and/or its affiliates and receive no compensation from the fund for their
services.
|
|
|
|
Aggregate Compensation
|
|
Total Compensation All Funds in the |
Independent Trustees
|
|
|
|
Patriot Premium II
|
|
John Hancock Fund
Complex(1)
|
James F.
Carlin |
|
|
|
|
$ 1,583 |
|
|
|
$ 145,250 |
|
Richard P.
Chapman, Jr.*# |
|
|
|
|
348 |
|
|
|
35,500 |
|
William H.
Cunningham* |
|
|
|
|
1,558 |
|
|
|
145,250 |
|
Ronald R.
Dion* |
|
|
|
|
4,122 |
|
|
|
315,250 |
|
Charles A.
Ladner* |
|
|
|
|
1,710 |
|
|
|
146,000 |
|
John A.
Moore* |
|
|
|
|
2,220 |
|
|
|
181,000 |
|
Patti McGill
Peterson* |
|
|
|
|
1,698 |
|
|
|
151,000 |
|
Steven R.
Pruchansky* |
|
|
|
|
2,092 |
|
|
|
180,250 |
|
Totals |
|
|
|
|
$15,331 |
|
|
|
$1,299,500 |
|
(1) |
|
The total compensation paid by the John Hancock fund complex to
the Independent Trustees for the calendar year ended December 31, 2007. All the Independent Trustees were Trustees of 57 funds in the John Hancock fund
complex. |
* |
|
As of December 31, 2007, the value of the aggregate accrued
deferred compensation amount from all funds in the John Hancock fund complex for Mr. Chapman was $92,193, Mr. Cunningham was $240,195, Mr. Dion was
$859,304, Dr. Moore was $363,017, Mr. Pruchansky was $388,329, Mr. Ladner was $89,569 and Ms. McGill Peterson was $79,183 under the John Hancock
Deferred Compensation Plan for Independent Trustees (the Plan). Under the Plan, an Independent Trustee may elect to have his or her
deferred fees invested by a fund in shares of one or more funds in the John Hancock fund complex and the amount paid to the Trustee under the Plan will
be determined based upon the performance of such investments. Deferral of Trustees fees does not obligate any fund to retain the services of any
Trustee or obligate any fund to pay any particular level of compensation to the Trustee. |
# |
|
Mr. Chapman retired on March 20, 2007. |
|
|
Mr. Dion, former Chairman of the Board of Trustees, passed away
on November 30, 2007. |
Material Relationships of the Independent
Trustees
As of December 31, 2007, none of the
Independent Trustees, nor any immediate family member, owned shares of the Adviser or is a principal underwriter of the fund, nor does any such person
own shares of a company controlling, controlled by or under common control with the Adviser or a principal underwriter of the fund.
There have been no transactions by the
fund since the beginning of the funds last two fiscal years, nor are there any transactions currently proposed in which the amount exceeds
$120,000, and in which any trustee of the fund or any immediate family members has or will have a direct or indirect material interest, nor have any of
the foregoing persons been indebted to the fund in an amount in excess of $120,000 at any time since that date.
No Independent Trustee, nor any
immediate family member, has had in the past five years, any direct or indirect interest, the value of which exceeds $120,000, in the Adviser, a
principal underwriter of the fund or in a person (other than a registered investment company) directly or indirectly controlling, controlled by or
under common control with the Adviser or principal underwriter of the fund. Moreover, no Independent Trustee or his or her immediate family member has,
or has had in the last two fiscal years of the fund, any direct or indirect relationships or material interest in any transaction or in any currently
proposed transaction, in which the amount involved exceeds $120,000, in which the following persons were or are a party: the fund, an officer of the
fund, any investment company sharing the same investment adviser or principal underwriter as the fund or any officer of such
9
a company, any investment adviser
or principal underwriter of the fund or any officer of such a party, any person directly or indirectly controlling, controlled by or under common
control with the investment adviser or principal underwriter of the fund, or any officer of such a person.
Within the last two completed fiscal
years of the fund, no officer of any investment adviser or principal underwriter of the funds or of any person directly or indirectly controlling,
controlled by or under common control with, the investment adviser or principal underwriter of the fund, has served as a director on a board of a
company where any of the Independent Trustees or nominees of the funds, or immediate family members of such persons, has served as an
officer.
Legal Proceedings
There are no material pending legal
proceedings to which any Trustee or affiliated person is a party adverse to the fund or any of its affiliated persons or has a material interest
adverse to the funds or any of its affiliated persons. In addition, there have been no legal proceedings that are material to an evaluation of the
ability or integrity of any trustee or executive officer of the fund within the past five years.
Independent Registered Public Accounting
Firm
The Trustees of the fund, including a
majority of the funds Independent Trustees, have selected PricewaterhouseCoopers LLC (PricewaterhouseCoopers) to act as independent
registered public accounting firm for the funds fiscal year ending October 31, 2008.
Representatives from
PricewaterhouseCoopers are expected to be present at the shareholders meeting and will have the opportunity to make a statement if they desire to
do so. The PricewaterhouseCoopers representatives will also be available to respond to appropriate questions at the meeting.
The following table sets forth the
aggregate fees billed by fiscal year and by PricewaterhouseCoopers for the funds 2006 and 2007 fiscal years for professional services rendered
for: (i) the audit of the funds annual financial statements and the review of financial statements included in the funds reports to
stockholders, (ii) assurance and related services that are reasonably related to the audit of the funds financial statements, (iii) tax
compliance, tax advice or tax planning and (iv) all services other than (i), (ii) and (iii). The table also discloses the aggregate fees paid during
the 2006 and 2007 calendar years to PricewaterhouseCoopers, respectively, by the Adviser and any entity controlling, controlled by or under common
control with the Adviser (Adviser Affiliates) that provides ongoing services to the fund.
|
|
|
|
Audit Fees
|
|
Audit-Related Fees
|
|
Tax Fees
|
|
All Other Fees
|
|
|
|
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
Patriot
Premium II |
|
|
|
|
$24,650 |
|
|
|
$24,650 |
|
|
|
$0 |
|
|
|
$0 |
|
|
|
$3,500 |
|
|
|
$3,500 |
|
|
|
$3,000 |
|
|
|
$3,000 |
|
The Adviser
and Adviser Affiliates |
|
|
|
|
$0 |
|
|
|
$0 |
|
|
|
$0 |
|
|
|
$0 |
|
|
|
$0 |
|
|
|
$0 |
|
|
|
$872,129 |
|
|
|
$1,655,823 |
|
The funds Audit and Compliance
Committee has adopted procedures to pre-approve audit and non-audit services for the fund and the Adviser and Adviser Affiliates. These procedures
identify certain types of audit and non-audit services that are anticipated to be provided by PricewaterhouseCoopers during a calendar year and,
provided the services are within the scope and value standards set forth in the procedures, pre-approve those engagements. The scope and value criteria
are reviewed annually. These procedures require both audit and non-audit sources to be approved by the Audit and Compliance Committee prior to engaging
PricewaterhouseCoopers.
In recommending PricewaterhouseCoopers
as the funds independent registered public accounting firm, the Audit Committee has considered the compensation provided to
PricewaterhouseCoopers for audit and non-audit services to the Adviser and Adviser Affiliates and has determined that such compensation is not
incompatible with maintaining PricewaterhouseCoopers independence. The aggregate amount of non-audit fees paid by the fund, the Adviser and
Adviser Affiliates that provide services to the fund, which includes amounts described above, were $898,792 and $1,682,423 for the fiscal years ending
October 31, 2006 and 2007, respectively. All such non-audit services were pre-approved in accordance with the funds policy.
10
Voting; Quorum; Adjournment
The following vote is required to
approve the proposal:
MISCELLANEOUS
Proposal
|
|
|
|
Vote Required
|
Election of
Trustees |
|
|
|
For
each class, a plurality of all votes cast, assuming a quorum exists.* A plurality means that the three nominees up for election by the
Common Shares or preferred shares receiving the greatest number of votes of the Common Shares or Preferred Shares, as the case may be, will be elected
as Trustees, regardless of the number of votes cast. Common and Preferred classes vote separately on this proposal. |
* |
|
In order for a quorum to exist, a majority of the
shares outstanding and entitled to vote must be present at the meeting, either in person or by proxy, determined in accordance with the table
below. |
The proposal in this Proxy Statement is
considered a routine matter on which brokers holding shares in street name may vote without instruction under the rules of the NYSE. While,
as noted above, the proposal is routine, for non-routine proposals, brokers that are member organizations of the NYSE may vote Preferred Shares for
which they have not received instructions in proportion to the shares for which they have received instructions. Proportionate voting of Preferred
Shares may occur on a non-routine proposal only if: (i) at least 30% of the Preferred Shares of the fund outstanding and entitled to vote have been
voted; (ii) less than 10% of such Preferred Shares voted against the proposal; (iii) the shareholders of the Common Shares of the fund have approved
the proposal (except with respect to plurality votes); and (iv) a majority of the Independent Trustees have approved the proposal.
The following table summarizes how the
quorum and voting requirements are determined.
Shares
|
|
|
|
Quorum
|
|
Voting
|
In
General |
|
|
|
All shares
present in person or by proxy are counted in determining whether a quorum exists. |
|
Shares present in
person will be voted in person by the shareholder at the meeting. Shares present by proxy will be voted by the proxyholder in accordance with
instructions specified in the proxy. |
|
Broker
Non-Vote |
|
|
|
Considered
present at meeting. |
|
Not voted. Same
effect as a vote against a proposal. |
|
Proxy with No
Voting Instruction (other than Broker Non-Vote) |
|
|
|
Considered
present for determining whether a quorum exists. |
|
Will be voted
for the proposal by the proxyholder. |
|
Vote to
Abstain |
|
|
|
Considered
present for determining whether a quorum exists. |
|
Disregarded.
Because abstentions are not votes cast, abstentions will have no effect on whether a proposal is approved. |
|
Proportionately
Voted preferred shares with No Voting Instruction |
|
|
|
Considered
present for determining whether a quorum exists. |
|
Voted in
proportion to preferred shares for which the broker received instructions. |
If a quorum is not present, the persons
named as proxies may vote their proxies to adjourn the meeting to a later date. If a quorum is present, but there are insufficient votes to approve any
proposal, the persons named as proxies may propose one or more adjournments of the meeting to permit further solicitation. Shareholder action may be
taken on one or more proposals prior to such adjournment. Proxies instructing a vote for a proposal will be voted in favor of an adjournment with
respect to that proposal and proxies instructing a vote against a proposal will be voted against an adjournment with respect to that
proposal.
Expenses and Methods of Solicitation
The costs of the meeting, including the
solicitation of proxies, will be paid by the fund, except that the Adviser is bearing the costs related to the inclusion of proposals Two and Three in
this proxy statement. Persons holding shares as nominees will be reimbursed by the fund, upon request, for their reasonable expenses in sending
soliciting
11
material to the principals of the
accounts. In addition to the solicitation of proxies by mail, Trustees, officers and employees of the funds or of the Adviser may solicit proxies in
person or by telephone. John Hancock Advisers, LLC, 601 Congress Street, Boston, Massachusetts 02210-2805, serves as the funds investment adviser
and administrator. Mellon Investor Services LLC has been retained to assist in the solicitation of proxies at a cost of approximately $2,500 plus
reasonable expenses.
Telephone Voting
In addition to soliciting proxies by
mail, by fax or in person, the fund may also arrange to have votes recorded by telephone by officers and employees of the fund or by the personnel of
the Adviser, transfer agent, or the solicitor. The telephone voting procedure is designed to verify a shareholders identity, to allow a
shareholder to authorize the voting of shares in accordance with the shareholders instructions and to confirm that the voting instructions have
been properly recorded.
|
|
A shareholder will be called on a recorded line at the telephone
number in the funds account records and will be asked to provide the shareholders Social Security number or other identifying
information. |
|
|
The shareholder will then be given an opportunity to authorize
proxies to vote his or her shares at the meeting in accordance with the shareholders instructions. |
Alternatively, a shareholder may call
the Funds Voice Response Unit to vote:
|
|
Read the proxy statement and have your proxy card at
hand. |
|
|
Call the toll-free-number located on your proxy
card. |
|
|
Follow recorded instructions. |
With both methods of telephone voting,
to ensure that the shareholders instructions have been recorded correctly, the shareholder will also receive a confirmation of the voting
instructions.
If the shareholder decides after voting
by telephone to attend the meeting, the shareholder can revoke the proxy at that time and vote the shares at the meeting.
Internet Voting
You will also have the opportunity to
submit your voting instructions via the Internet by utilizing a program provided through a vendor. Voting via the Internet will not affect your right
to vote in person if you decide to attend the meeting. Do not mail the proxy card if you are voting via the Internet. To vote via the Internet, you
will need the information on your proxy card. These Internet voting procedures are designed to authenticate shareholder identities, to allow
shareholders to give their voting instructions and to confirm that shareholders instructions have been recorded properly. If you are voting via
the Internet you should understand that there may be costs associated with electronic access, such as usage charges from Internet access providers and
telephone companies, which costs you must bear.
|
|
Read the proxy statement and have your card on hand. |
|
|
Go to the Web site listed on the card. |
|
|
Follow the directions on the Web site. Please call
1-800-852-0218 if you have any problems. |
|
|
To insure that your instructions have been recorded correctly,
you will receive a confirmation of your voting instructions immediately after your submission. |
The Funds Adviser and Subadviser
The funds investment adviser is
John Hancock Advisers, LLC, 601 Congress Street, Boston, Massachusetts 02110. An affiliate of the Adviser, MFC Global Investment Management (U.S.) LLC,
101 Huntington Ave., Boston, Massachusetts 02119, serves as subadviser to the fund.
Other Matters
The management of the fund knows of no
business to be brought before the annual meeting except as mentioned above. If, however, any other matters were properly to come before the meeting,
the persons named in the enclosed form of proxy intend to vote on such matters in accordance with their best judgment. If any shareholders desire
additional information about the matters proposed for action, the management of the funds will provide further information.
12
SHAREHOLDER PROPOSALS
Shareholder proposals, including
nominees for Trustee, intended to be presented at the funds annual meeting in 2009 must be received by the fund at its offices at 601 Congress
Street, Boston, Massachusetts, 02210, after September 10, 2008, but no later than October 10, 2008, for inclusion in the funds proxy statement
and form of proxy relating to that meeting (subject to certain exceptions).
IT IS IMPORTANT THAT PROXIES BE RETURNED
PROMPTLY
JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND
II
Dated: February 7,
2008
13
ATTACHMENT 1
JOHN HANCOCK FUNDS
AUDIT AND COMPLIANCE COMMITTEE
CHARTER
A. Membership. The
Audit and Compliance Committee shall be composed exclusively of Trustees who are not interested persons as defined in the Investment
Company Act of 1940 of any of the funds, or of any funds investment adviser or principal underwriter (the Independent Trustees) and
who satisfy the independence and financial literacy requirements in this charter. The Audit and Compliance Committee shall be composed of at least
three Independent Trustees who are designated for membership from time to time by the Board of Trustees. In selecting Independent Trustees to serve on
the Audit and Compliance Committee, the Board should select members who are free of any relationship that, in the opinion of the Board, may interfere
or give the appearance of interfering with such members individual exercise of independent judgment. Unless otherwise determined by the Board, no
member of the Audit and Compliance Committee may serve on the audit committee of more than two other public companies (other than another John Hancock
Fund). Except as otherwise permitted by the applicable rules of the New York Stock Exchange, each member of the Audit and Compliance Committee shall be
independent as defined by such rules and Rule 10A-3(b)(1) of the Exchange Act. Each member of the Audit and Compliance Committee must be financially
literate, as such qualification is interpreted by the Board of Trustees in its business judgment, or must become financially literate within a
reasonable period of time after his or her appointment to the Audit and Compliance Committee. At least one member of the Audit and Compliance Committee
must have accounting or related financial management expertise, as the Board of Trustees interprets such qualification in its business
judgment.
B. Overview. The Audit and
Compliance Committees purpose is to:
1. |
|
assist the Board of Trustees oversight of (1) the
integrity of the funds financial statements, (2) the funds compliance with legal and regulatory requirements (except to the extent such
responsibility is delegated to another committee), (3) the independent auditors qualifications and independence and (4) the performance of the
funds internal audit function and independent auditors; |
2. |
|
act as a liaison between the funds independent accountants
and the Board of Trustees; |
3. |
|
prepare an Audit and Compliance Committee Report as required by
the Securities and Exchange Commission (the SEC) to the extent required to be included in the funds annual proxy statement or other
filings; |
The Audit and Compliance Committee
shall discharge its responsibilities and shall access the information provided by the funds management and independent auditors, in accordance
with its business judgment. Management is responsible for the preparation of the funds financial statements and the independent auditors are
responsible for auditing those financial statements. The Audit and Compliance Committee and the Board of Trustees recognize that management (including
the internal audit staff) and the independent auditors have more experience, expertise, resources and time, and more detailed knowledge and information
regarding a funds accounting, auditing, internal control and financial reporting practices than the Audit and Compliance Committee does.
Accordingly, the Audit and Compliance Committees oversight role does not provide any expert or special assurance as to the financial statements
and other financial information provided by a fund to its shareholders and others. The independent auditors are responsible for auditing the
funds annual financial statements. The authority and responsibilities set forth in this charter do not reflect or create any duty or obligation
of the Audit and Compliance Committee to plan or conduct any audit, to determine or certify that any funds financial statements are complete,
accurate, fairly presented, or in accordance with generally accepted accounting principles or applicable law, or to guarantee any independent
auditors report.
C. Oversight. The
independent auditors shall report directly to the Audit and Compliance Committee and the Audit and Compliance Committee shall be responsible for
oversight of the work of the independent auditors, including resolution of any disagreements between any funds management and the independent
auditors regarding financial reporting. In connection with its oversight role, the Audit and Compliance Committee should also review with the
independent auditors, from time to time as appropriate: significant risks and uncertainties with respect to the quality, accuracy or fairness of
presentation of a funds financial statements; recently disclosed problems with respect to the quality, accuracy or fairness of presentation of
the financial statements of companies similarly situated to the funds and recommended actions which might be taken to prevent or mitigate the risk of
problems at the funds arising from such matters; accounting for unusual transactions; adjustments arising from audits that could have a significant
impact on the funds financial reporting process; and any recent SEC comments on the funds SEC reports, including, in particular, any
compliance comments. The Audit and Compliance Committee should inquire
14
of the independent auditor
concerning the quality, not just the acceptability, of the funds accounting determinations and other judgmental areas and question whether
managements choices of accounting principles are, as a whole, conservative, moderate or aggressive.
D. Specific
Responsibilities. The Audit and Compliance Committee shall have the following duties and powers, to be exercised at such times and in
such manner as the Committee shall deem necessary or appropriate:
1. |
|
To oversee the funds auditing and accounting
process. |
2. |
|
To approve and recommend to the Board of Trustees for its
ratification and approval in accord with applicable law the selection, appointment and retention of an independent auditor for each fund prior to the
engagement of such independent auditor and, at an appropriate time, its compensation. The Committee should meet with the independent auditor prior to
the audit to discuss the planning and staffing of the audit. The Committee should periodically consider whether, in order to assure continuing auditor
independence, there should be regular rotation of the independent audit firm and obtain and review a copy of the most recent report on the independent
auditor issued by the Public Company Accounting Oversight Board pursuant to Section 104 of the Sarbanes-Oxley Act. |
3. |
|
To periodically review and evaluate the lead partner and other
senior members of the independent auditors team and confirm the regular rotation of the lead audit partner and reviewing partner as required by
Section 203 of the Sarbanes-Oxley Act. |
4. |
|
To confirm that the officers of the funds were not employed by
the independent auditor, or if employed, did not participate in any capacity in the audit of the funds, in each case, during the one-audit-year period
preceding the date of initiation of the audit, as required by Section 206 of the Sarbanes-Oxley Act. |
5. |
|
To pre-approve all non-audit services provided by the
independent auditor to the fund or to the funds investment adviser and any entity controlling, controlled by or under common control with the
investment adviser that provides ongoing services to the fund, if the engagement relates directly to the operations and financial reporting of the
fund. |
6. |
|
The Committee is authorized to delegate, to the extent permitted
by law, pre-approval responsibilities to one or more members of the Committee who shall report to the Committee regarding approved services at the
Committees next regularly scheduled meeting. The Committee is also authorized to adopt policies and procedures which govern the pre-approval of
audit, audit-related, tax and other services provided by the independent accountants to the funds or to a service provider as referenced in Paragraph 5
provided, however, that any such policies and procedures are detailed as to particular services, the Audit and Compliance Committee is informed of each
service, and any such policies and procedures do not include the delegation of the Audit and Compliance Committees responsibilities under the
Securities Exchange Act of 1934 or applicable rules or listing requirements. |
7. |
|
To monitor the independent auditor of each fund throughout the
engagement to attempt to identify: conflicts of interest between management and the independent auditor as a result of employment relationships; the
provision of prohibited non-audit services to a fund by its independent auditor; violations of audit partner rotation requirements; and prohibited
independent auditor compensation arrangements whereby individuals employed by the auditor are compensated based on selling non-audit services to the
fund. The independent auditors should promptly contact the Audit and Compliance Committee or its Chair about any significant issue or disagreement
concerning a funds accounting practices or financial statements that is not resolved to their satisfaction or if Section 10A(b) of the Exchange
Act has been implicated. |
8. |
|
To meet with independent auditors, including private meetings as
necessary, managements internal auditors and the funds senior management (i) to review the arrangements for and scope of the annual audit
and any special audits; (ii) to review the form and substance of the funds financial statements and reports, including each funds
disclosures under Managements Discussion of Fund Performance and to discuss any matters of concern relating to the funds
financial statements, including any adjustments to such statements recommended by the independent accountants, or other results of an audit; (iii) to
consider the independent accountants comments with respect to the funds financial policies, procedures and internal accounting controls and
managements responses thereto; (iv) to review the resolution of any disagreements between the independent accountants and management regarding
the funds financial reporting; and (v) to review the form of opinion the independent accountants propose to render to the Board and shareholders.
The Audit and Compliance Committee should request from the independent auditors a frank assessment of management. |
15
9. |
|
With respect to any listed fund, to consider whether it will
recommend to the Board of Trustees that the audited financial statements be included in a funds annual report. The Board delegates to the Audit
and Compliance Committee the authority to release the funds financial statements for publication in the annual and semi-annual report, subject to
the Boards right to review and ratify such financial statements following publication. With respect to each fund, to review and discuss with each
funds management and independent auditor the funds audited financial statements and the matters about which Statement on Auditing Standards
No. 61 (Codification of Statements on Auditing Standards, AU §380) requires discussion. The Audit and Compliance Committee shall prepare an annual
committee report for inclusion where necessary in the proxy statement of a fund relating to its annual meeting of security holders or in any other
filing required by the SECs rules. |
10. |
|
To receive and consider reports on the audit functions of the
independent auditors and the extent and quality of their auditing programs. |
11. |
|
To assist the Board of Trustees in monitoring the Office of the
Chief Compliance Officer (the CCO) by: |
|
|
Reviewing, no less frequently than annually, the CCOs
report on the operation of the compliance programs of the funds and compliance programs of the funds adviser, sub-advisers, principal
underwriter, administrator and transfer agent (collectively, service providers). |
|
|
Reviewing matters relating to the compliance programs of the
funds and the compliance programs of their service providers and compliance matters relating to the funds and their service providers as may be
presented to the Committee by the CCO. |
|
|
Making recommendations to the Board of Trustees regarding
changes to the funds compliance program, as may be necessary or appropriate from time to time. |
|
|
Reviewing the compliance programs for proposed service providers
to the funds, including subadvisers, and making recommendations regarding approval of such compliance programs to the Board of Trustees. |
|
|
Reviewing regulatory inquiries relating to the funds and their
service providers as may be presented to the Committee by the CCO. |
|
|
Reviewing the CCOs goals and objectives and making
recommendations to the Board of Trustees regarding the CCOs compensation, including bonus and merit components. |
|
|
Reviewing the CCOs annual budget and making
recommendations to the Board of Trustees regarding its approval and the amount of such budget that should be an expense of the funds. |
12. |
|
To obtain and review, at least annually, a report by the
independent auditor describing: the firms internal quality-control procedures; any material issues raised by the most recent internal
quality-control review, or peer review, of the firm or by any inquiry or investigation by governmental or professional authorities, within the
preceding five years, respecting one or more independent audits carried out by the firm, and any steps taken to deal with any such issues; and all
relationships between the independent auditor and each fund, including the disclosures required by any applicable Independence Standards Board
Standard. The Audit and Compliance Committee shall engage in an active dialogue with each independent auditor concerning any disclosed relationships or
services that might impact the objectivity and independence of the auditor. |
13. |
|
To review with the independent auditor any problems that may be
reported to it arising out of a funds accounting, auditing or financial reporting functions and managements response, and to receive and
consider reports on critical accounting policies and practices and alternative treatments discussed with management. |
14. |
|
To review the procedures for allocating fund brokerage, the
allocation of trades among various accounts under management and the fees and other charges for fund brokerage. |
15. |
|
To receive and consider reports from the independent auditors
regarding reviews of the operating and internal control structure of custodian banks and transfer agents, including procedures to safeguard fund
assets. |
16. |
|
To monitor securities pricing procedures and review their
implementation with management, managements internal auditors, independent auditors and others as may be required. |
16
17. |
|
To establish and monitor, or cause to be established and
monitored, procedures for the receipt, retention and treatment of complaints received by a fund regarding accounting, internal accounting controls or
auditing matters, and the confidential, anonymous submission by employees of the investment adviser, administrator, principal underwriter or any other
provider of accounting-related services for a listed fund, as well as employees of the fund, if any, regarding questionable accounting or auditing
matters, as and when required by applicable rules or listing requirements. The procedures currently in effect are attached as Exhibit
A. |
18. |
|
To report regularly to the Board of Trustees, including
providing the Audit and Compliance Committees conclusions with respect to the independent auditor and the funds financial statements and
accounting controls. |
E. Subcommittees. The
Audit and Compliance Committee may, to the extent permitted by applicable law, form and delegate authority to one or more subcommittees (including a
subcommittee consisting of a single member) as it deems appropriate from time to time under the circumstances. Any decision of a subcommittee to
preapprove audit or non-audit services shall be presented to the full Audit and Compliance Committee at its next meeting.
F. Additional
Responsibilities. The Committee shall serve as the qualified legal compliance committee (as such term is defined in 17 CFR
Part 205) (QLCC), the duties of which are listed on Exhibit B to this charter, shall also perform other tasks assigned to it from
time to time by the Board of Trustees and will report findings and recommendations to the Board of Trustees, as appropriate.
G. Funding. Each fund
shall provide for appropriate funding, as determined by the Audit and Compliance Committee, in its capacity as a committee of the Board of Trustees,
for payment of:
1. |
|
Compensation to any registered public accounting firm engaged
for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the fund. |
2. |
|
Compensation to any counsel, advisers, experts or consultants
engaged by the Audit and Compliance Committee under Paragraph J of this charter. |
3. |
|
Ordinary administrative expenses of the Audit and Compliance
Committee that are necessary or appropriate in carrying out its duties. |
H. Governance. One
member of the Committee shall be appointed as chair. The chair shall be responsible for leadership of the Committee, including scheduling meetings or
reviewing and approving the schedule for them, preparing agendas or reviewing and approving them before meetings, presiding over meetings and making
reports to the Board of Trustees, as appropriate. The designation of a person as an audit committee financial expert, within the meaning of
the rules under Section 407 of the Sarbanes-Oxley Act of 2002, shall not impose any greater responsibility or liability on that person than the
responsibility and liability imposed on such person as a member of the Committee, nor shall it decrease the duties and obligations of other Committee
members or the Board of Trustees. Any additional compensation of Audit and Compliance Committee members shall be as determined by the Board of
Trustees. No member of the Audit and Compliance Committee may receive, directly or indirectly, any consulting, advisory or other compensatory fee from
a fund, other than fees paid in his or her capacity as a member of the Board of Trustees or a committee of the Board of Trustees. The members of the
Audit and Compliance Committee should confirm that the minutes of the Audit and Compliance Committees meetings accurately describe the issues
considered by the Committee, the process the Committee used to discuss and evaluate such issues and the Committees final determination of how to
proceed. The minutes should document the Committees consideration of issues in a manner that demonstrates that the Committee acted with due
care.
I. Evaluation. At
least annually, the Audit and Compliance Committee shall evaluate its own performance, including whether the Audit and Compliance Committee is meeting
frequently enough to discharge its responsibilities appropriately.
J. Miscellaneous. The
Committee shall meet as often as it deems appropriate, with or without management, as circumstances require. The Committee shall have the resources and
authority appropriate to discharge its responsibilities, including the authority to retain special counsel and other advisers, experts or consultants,
at the funds expense, as it determines necessary to carry out its duties. The Committee shall have direct access to such officers of and service
providers to the funds as it deems desirable.
K. Review. The
Committee shall review this charter at least annually and shall recommend such changes to the Board of Trustees as it deems desirable.
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EXHIBIT A
Policy for Raising and Investigating Complaints or
Concerns
About Accounting or Auditing Matters
As contemplated by the Audit and Compliance Committee Charter,
the Committee has established the following procedures for:
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the receipt, retention and treatment of complaints received by a
fund regarding accounting, internal accounting controls or auditing matters; and |
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he confidential, anonymous submission by employees of the
investment adviser, administrator, principal underwriter or any other provider of accounting-related services for a listed fund, as well as employees
of the fund (covered persons) of concerns regarding questionable accounting or auditing matters. |
The objective of this policy is to
provide a mechanism by which complaints and concerns regarding accounting, internal accounting controls or auditing matters may be raised and addressed
without the fear or threat of retaliation. The funds desire and expect that covered persons will report any complaints or concerns they may have
regarding accounting, internal accounting controls or auditing matters.
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Procedures for Raising Complaints and Concerns |
The funds Secretary shall be
responsible for communicating these procedures to covered persons. Covered persons with complaints regarding accounting, internal accounting controls
or auditing matters or concerns regarding questionable accounting or auditing matters may submit such complaints or concerns to the attention of the
funds Secretary by sending a letter or other writing to the funds principal executive offices. Complaints and concerns may be made
anonymously. Alternatively, any complaints or concerns may also be communicated anonymously directly to any member of the Audit and Compliance
Committee.
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Procedures for Investigating and Resolving Complaints and
Concerns |
If any complaints or concerns regarding
internal accounting controls or auditing matters that could affect the funds are received through the Ethics Line or any other similar facility
maintained by John Hancock Financial Services, they shall be communicated promptly to the funds Secretary and shall be reported by the
funds Secretary to the Audit and Compliance Committee, promptly or quarterly according to the guidelines set forth below.
The funds Secretary shall report
to the Audit and Compliance Committee as to whether those responsible for the Ethics Line or similar facility have a procedure in place to communicate
promptly any such complaints or concerns to the funds Secretary and whether any such communication would violate the terms
thereof.
All complaints and concerns received
will be promptly forwarded to the Audit and Compliance Committee or the chair of the Audit and Compliance Committee, unless they are determined to be
without merit by Secretary of the funds. If sent only to the chair, the chair may determine the appropriate response or may refer the issues to the
entire Audit and Compliance Committee. In any event, the funds Secretary will provide a record of all complaints and concerns received (whether
or not determined to have merit) to the Audit and Compliance Committee quarterly.
The Audit and Compliance Committee will
evaluate any complaints or concerns received (including those reported to the committee on a quarterly basis and which the funds Secretary has
previously determined to be without merit). If the Audit and Compliance Committee requires additional information to evaluate any complaint or concern,
it may conduct an investigation, including interviews of persons believed to have relevant information. The Audit and Compliance Committee may, in its
discretion, assume responsibility for directing or conducting any investigation or may delegate such responsibility to another person or
entity.
After its evaluation of the complaint
or concern, the Audit and Compliance Committee will authorize such follow-up actions, if any, as deemed necessary and appropriate to address the
substance of the complaint or concern. The funds reserve the right to take whatever action the Audit and Compliance Committee believes appropriate, up
to and including discharge of any employee deemed to have engaged in improper conduct.
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Regardless of whether a complaint or
concern is submitted anonymously, the Audit and Compliance Committee will strive to keep all complaints and concerns and the identity of those who
submit them and participate in any investigation as confidential as possible, limiting disclosure to those with a business need to know or as required
by law or recommended by legal counsel.
No covered person shall penalize or
retaliate against any other covered person for reporting a complaint or concern, unless it is determined that the complaint or concern was made with
knowledge that it was false. The funds will not tolerate retaliation against any covered person for submitting, or for cooperating in the investigation
of, a complaint or concern. Moreover, any such retaliation is unlawful and may result in criminal action. Any retaliation will warrant disciplinary
action against the offending party, up to and including termination of employment.
John Hancock Advisers, LLC shall
include this policy in its employee manual and shall distribute, at least annually, the policy to all of its employees.
The funds Secretary shall retain
records of all complaints and concerns received, and the disposition thereof, for five years.
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Notification of Others |
At any time during an evaluation or
investigation of a complaint or concern, the chair of the Audit and Compliance Committee may notify the funds CCO, the QLCC or any other party
with a need to know of the receipt of a complaint or concern and/or the progress or results of any review and/or investigation of a complaint or
concern. The chair of the Audit and Compliance Committee may provide such level of detail as may be necessary to allow the appropriate consideration by
such parties in light of the funds ongoing obligations, including, but not limited to, disclosure obligations or any required officer
certifications.
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EXHIBIT B QUALIFIED LEGAL COMPLIANCE COMMITTEE
(QLCC) DUTIES AND RESPONSIBILITIES
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The QLCC shall adopt written procedures for the confidential
receipt, retention and consideration of any report of evidence of a material violation. |
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The QLCC has the authority and responsibility, once a report of
evidence of a material violation by a fund, its officers, directors, employees or agents has been received by the QLCC: |
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to inform the CLO and CEO of such report (except in the case
where the reporting attorney reasonably believes that it would be futile to report evidence of a material violation to the CLO and CEO and has informed
the QLCC of such belief); and |
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to determine whether an investigation is necessary or
appropriate and, if it determines an investigation is necessary or appropriate, to: |
(A) notify the Board of
Trustees;
(B) notify the funds
CCO;
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initiate an investigation, which may be conducted either by the
CLO or by outside attorneys; and |
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retain such additional expert personnel as the QLCC deems
necessary; |
and, at the conclusion of such
investigation, to:
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recommend, by majority vote, that the fund implement an
appropriate response to evidence of a material violation; and |
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inform the CLO, CEO the funds CCO and the Board of
Trustees of the results of any such investigation and the appropriate remedial measures. |
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by majority vote, to take all other appropriate action,
including notifying the U.S. Securities and Exchange Commission in the event that the fund fails in any material respect to implement an appropriate
response that the QLCC has recommended. |
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ATTACHMENT 2
AUDIT AND COMPLIANCE COMMITTEE REPORT
The information contained in this
report shall not be deemed to be soliciting material or filed or incorporated by reference in future filings with the SEC, or
subject to the liabilities of Section 18 of the Securities Exchange Act of 1934, except to the extent that we specifically incorporate it by reference
into a document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934.
The Audit and Compliance Committee has
reviewed and discussed with the Funds management and PricewaterhouseCoopers the audited financial statements of the Funds contained in the Annual
Report on Form N-CSR for the 2007 fiscal year. The Audit and Compliance Committee has also discussed with PricewaterhouseCoopers the matters required
to be discussed pursuant to SAS No. 61 (Codification of Statements on Auditing Standards, AU Section 380), which includes, among other items, matters
related to the conduct of the audit of the Funds financial statements.
The Audit and Compliance Committee has
received and reviewed the written disclosures and the letter from PricewaterhouseCoopers required by Independence Standards Board Standard No. 1
(Independence Discussions with Audit and Compliance Committees) and has discussed with PricewaterhouseCoopers its independence from the
Funds.
Based on the review and discussions
referred to above, the Audit and Compliance Committee recommended to the Board of Trustees that the audited financial statements be included in each
Funds Annual Report on Form N-CSR for filing with the Securities and Exchange Commission.
Submitted by the Audit and Compliance
Committee
John A. Moore, Chairman
Charles L. Ladner
Patti
McGill Peterson
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ATTACHMENT 3
JOHN HANCOCK FUNDS
GOVERNANCE COMMITTEE
CHARTER
A. Composition. The
Governance Committee shall be composed entirely of Trustees who are independent as defined in the rules of the New York Stock Exchange
(NYSE) and the NASDAQ Stock Market, Inc. (NASDAQ) or any other exchange, as applicable, and are not interested
persons as defined in the Investment Company Act of 1940 of any of the funds, or of any funds investment adviser or principal underwriter
(the Independent Trustees) who are designated for membership from time to time by the Board of Trustees. The Chairman of the Board shall be
a member of the Governance Committee.
B. Overview. The
overall charter of the Governance Committee is to make recommendations to the Board on issues related to corporate governance applicable to the
Independent Trustees and to the composition and operation of the Board, and to assume duties, responsibilities and functions to recommend nominees to
the Board, together with such additional duties, responsibilities and functions as are delegated to it from time to time.
C. Specific
Responsibilities. The Governance Committee shall have the following duties and powers, to be exercised at such times and in such manner
as the Committee shall deem necessary or appropriate:
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Except where the funds are legally required to nominate
individuals recommended by others, to recommend to the Board of Trustees individuals for nomination to serve as Trustees. |
2.
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To consider, as it deems necessary or appropriate, the criteria
for persons to fill existing or newly created Trustee vacancies. The Governance Committee shall use the criteria and principles set forth in Annex A to
guide its Trustee selection process. |
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To consider and recommend the amount of compensation to be paid
by the funds to the Independent Trustees, including incremental amounts, if any, payable to Committee Chairmen, and to address compensation-related
matters. |
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To consider and recommend the duties and compensation of the
Chairman of the Board. |
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To consider and recommend changes to the Board regarding the
size, structure and composition of the Board. |
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To evaluate, from time to time, the retirement policies for the
Independent Trustees. |
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To develop and recommend to the Board guidelines for corporate
governance (Corporate Governance Guidelines) for the funds that take into account the rules of the NYSE and any applicable law or
regulation, and to periodically review and assess the Corporate Governance Guidelines and recommend any proposed changes to the Board for
approval. |
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To monitor all expenditures of the Board or the Committees or
the Independent Trustees not otherwise incurred and/or monitored by a particular Committee, including, but not limited to: legal, consulting and
D&O insurance costs; association dues, including Investment Company Institute membership dues; meeting expenditures and policies relating to
reimbursement of travel expenses and expenses associated with offsite meetings; expenses associated with Trustee attendance at educational or
informational conferences; and publication expenses. |
9.
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To consider, evaluate and make recommendations and necessary
findings regarding independent legal counsel and any other advisers, experts or consultants, that may be engaged by the Board of Trustees, by the
Trustees who are not interested persons as defined in the Investment Company Act of 1940 of any of the funds or any funds investment
adviser or principal underwriter, or by the Governance Committee, from time to time, other than as may be engaged directly by another
committee. |
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To periodically review the Boards committee structure and
the charters of the Boards committees, and recommend to the Board of Trustees changes to the committee structure and charters as it deems
appropriate. |
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To coordinate and administer an annual self-evaluation of the
Board, which will include, at a minimum, a review of its effectiveness in overseeing the number of funds in the fund complex and the effectiveness of
its committee structure. |
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To report its activities to Board of Trustees and to make such
recommendations with respect to the matters described above and other matters as the Governance Committee may deem necessary or
appropriate. |
D. Additional
Responsibilities. The Committee will also perform other tasks assigned to it from time to time by the Chairman of the Board or by the
Board of Trustees, and will report findings and recommendations to the Board of Trustees, as appropriate.
E. Governance. One
member of the Committee shall be appointed as chair. The chair shall be responsible for leadership of the Committee, including scheduling meetings or
reviewing and approving the schedule for them, preparing agendas or reviewing and approving them before meetings, and making reports to the Board of
Trustees, as appropriate.
F. Miscellaneous. The
Committee shall meet as often as it deems appropriate, with or without management, as circumstances require. The Committee shall have the resources and
authority appropriate to discharge its responsibilities, including the authority to retain special counsel and other advisers, experts or consultants,
at the funds expense, as it determines necessary to carry out its duties. The Committee shall have direct access to such officers of and service
providers to the funds as it deems desirable.
G. Review. The
Committee shall review this Charter periodically and recommend such changes to the Board of Trustees as it deems desirable.
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ANNEX A
General Criteria
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Nominees should have a reputation for integrity, honesty and
adherence to high ethical standards. |
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Nominees should have demonstrated business acumen, experience
and ability to exercise sound judgments in matters that relate to the current and long-term objectives of the funds and should be willing and able to
contribute positively to the decision-making process of the funds. |
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Nominees should have a commitment to understand the funds, and
the responsibilities of a trustee/director of an investment company and to regularly attend and participate in meetings of the Board and its
committees. |
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Nominees should have the ability to understand the sometimes
conflicting interests of the various constituencies of the funds, including shareholders and the management company, and to act in the interests of all
shareholders. |
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Nominees should not have, nor appear to have, a conflict of
interest that would impair their ability to represent the interests of all the shareholders and to fulfill the responsibilities of a
director/trustee. |
Application of Criteria to Existing
Trustees
The renomination of existing Trustees
should not be viewed as automatic, but should be based on continuing qualification under the criteria set forth above. In addition, the Governance
Committee shall consider the existing Trustees performance on the Board and any committee.
Review of Shareholder Nominations
Any shareholder nomination must be
submitted in compliance with all of the pertinent provisions of Rule 14a-8 under the Securities Exchange Act of 1934 in order to be considered by the
Governance Committee. In evaluating a nominee recommended by a shareholder, the Governance Committee, in addition to the criteria discussed above, may
consider the objectives of the shareholder in submitting that nomination and whether such objectives are consistent with the interests of all
shareholders. If the Board determines to include a shareholders candidate among the slate of its designated nominees, the candidates name
will be placed on the funds proxy card. If the Board determines not to include such candidate among its designated nominees, and the shareholder
has satisfied the requirements of Rule 14a-8, the shareholders candidate will be treated as a nominee of the shareholder who originally nominated
the candidate. In that case, the candidate will not be named on the proxy card distributed with the funds proxy statement.
As long as an existing Independent
Trustee continues, in the opinion of the Governance Committee, to satisfy the criteria listed above, the Committee generally would favor the
re-nomination of an existing Trustee rather than a new candidate. Consequently, while the Governance Committee will consider nominees recommended by
shareholders to serve as trustees, the Governance Committee may only act upon such recommendations if there is a vacancy on the Board, or the
Governance Committee determines that the selection of a new or additional Trustee is in the best interests of the fund. In the event that a vacancy
arises or a change in Board membership is determined to be advisable, the Governance Committee will, in addition to any shareholder recommendations,
consider candidates identified by other means, including candidates proposed by members of the Governance Committee. The Governance Committee may
retain a consultant to assist the Committee in a search for a qualified candidate.
24
JOHN HANCOCK PATRIOT PREMIUM
DIVIDEND FUND II
Annual Meeting of Shareholders
March 31, 2008
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The
undersigned holder of common shares of beneficial interest of John Hancock
Patriot Premium Dividend Fund II hereby appoints KEITH F. HARTSTEIN, GORDON
M. SHONE and THOMAS M. KINZLER, and each of them singly, proxies and
attorneys of the undersigned, with full power of substitution to each, for
and in the name of the undersigned, to vote and act upon all matters at the
Annual Meeting of Shareholders of the Fund to be held on Monday, March 31,
2008 at the offices of the Fund, 601 Congress Street, Boston, Massachusetts,
at 2:00 p.m., Eastern time, and at any and all adjournments thereof, in
respect of all common shares of the Fund held by the undersigned or in
respect of which the undersigned would be entitled to vote or act, with all
powers the undersigned would possess if personally present. All proxies
previously given by the undersigned in respect of said meeting are hereby
revoked.
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PLEASE VOTE, DATE AND SIGN ON REVERSE AND RETURN
PROMPTLY IN THE ENCLOSED ENVELOPE.
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Please complete, sign, date and
return this proxy in the enclosed envelope as soon as possible. Please sign
exactly as your name or names appear in the box on the reverse. When signing
as Attorney, Executor, Administrator, Trustee or Guardian, please give your
full title as such. If a corporation, please sign in full corporate name by
president or other authorized officer. If a partnership, please sign in partnership
name by authorized person.
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Address Change/Comments (Mark the
corresponding box on the reverse side )
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5FOLD AND DETACH HERE5
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THIS PROXY IS SOLICITED BY THE BOARD OF
TRUSTEES
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Please Mark Here
for Address
Change or
Comments
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SEE REVERSE SIDE
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1.
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Election of Trustees:
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(01) James F. Carlin,
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(02) William H. Cunningham
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FOR
ALL
NOMINEES
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WITHHOLD
FROM ALL
NOMINEES
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For all nominees
except as noted above
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JOHN HANCOCK
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PATRIOT PREMIUM
DIVIDEND FUND II
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Specify your vote by marking the appropriate spaces. If no
specification is made, this proxy will be voted for the nominees named in
the proxy statement. The persons named as proxies have discretionary
authority, which they intend to exercise in favor of the proposal referred
to and according to their best judgment as to any other matters which may
properly come before the meeting.
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Please be sure to sign and date this Proxy.
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Signature: _____________________ Date: ____________ Signature: _____________________ Date: ____________
5FOLD AND DETACH HERE5
WE ENCOURAGE YOU TO TAKE
ADVANTAGE OF INTERNET OR TELEPHONE VOTING,
BOTH ARE AVAILABLE 24 HOURS A DAY, 7 DAYS A WEEK.
Internet and telephone voting is available through 11:59 PM
Eastern Time
the day prior to annual meeting day.
Your Internet or telephone vote authorizes the named proxies
to vote your shares in the same manner
as if you marked, signed and returned your proxy card.
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INTERNET
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TELEPHONE
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http://www.proxyvoting.com/pdt
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1-866-540-5760
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Use the internet to
vote your proxy. Have your proxy card in hand when you access the web site.
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OR
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Use any touch-tone
telephone to vote your proxy. Have your proxy card in hand when you call.
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If
you vote your proxy by Internet or by telephone, you do NOT need to mail back
your proxy card.
To vote by mail, mark, sign and date your proxy card and
return it in the enclosed postage-paid envelope.
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P R O X Y
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JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II
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The
undersigned holder of Dutch Auction Rate Transferable Securities of beneficial
interest (Preferred Shares) of John Hancock Patriot Premium Dividend Fund II
(the Fund) hereby constitutes and appoints Keith F. Hartstein, Gordon M.
Shone and Thomas M. Kinzler, and each of them singly, proxies and attorneys of
the undersigned, with full power of substitution to each, for and in the name
of the undersigned, to vote and act upon all matters at the Annual Meeting of
Shareholders of the Fund to be held on Monday, March 31, 2008, at the offices
of the Fund, 601 Congress Street, Boston, Massachusetts, at 2:00 P.M.,
Eastern Time, and at any and all adjournments thereof, in respect to all Preferred
Shares of the Fund held by the undersigned or in respect of which the
undersigned would be entitled to vote or act, with all the powers the
undersigned would possess if personally present. All proxies previously given
by the undersigned in respect of said meeting are hereby revoked.
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1: To elect the following nominee as a
Trustee of the Fund:
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JOHN A. MOORE
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For o
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Withhold o
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P2PXC 2/08
Specify
your vote by check marks in the appropriate spaces. This proxy will be voted as
specified. If no specification is made, the proxy will be voted for the nominee
named in the Proxy Statement. The persons named as proxies have discretionary
authority, which they intend to exercise in favor of the proposal referred to
and according to their best judgment as to the other matters which properly
come before the meeting.
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PLEASE
COMPLETE, SIGN, DATE AND RETURN THIS PROXY IN THE ENCLOSED ENVELOPE AS SOON
AS POSSIBLE. PLEASE SIGN EXACTLY AS YOUR NAME OR NAMES APPEAR IN THE BOX ON
THE LEFT. WHEN SIGNING AS ATTORNEY, EXECUTOR, ADMINISTRATOR, TRUSTEE OR
GUARDIAN, PLEASE GIVE YOUR FULL TITLE AS SUCH. IF A CORPORATION, PLEASE SIGN
IN FULL CORPORATE NAME BY PRESIDENT OR OTHER AUTHORIZED OFFICER. IF A
PARTNERSHIP, PLEASE SIGN IN PARTNERSHIP NAME BY AUTHORIZED PERSON.
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Date:______________________________________________________________________,
2008
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________________________________________________________________________________
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________________________________________________________________________________
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Signature(s) of Shareholder(s)
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THIS PROXY IS SOLICITED BY THE BOARD OF
TRUSTEES