Highlights 
                  of the 2010 general election results
                The 
                  general election results showed that California was shielded 
                  from the Republican wave that swept the rest of the country. 
                  Jerry' Brown's win and the approval of Proposition 25, which 
                  lowers the vote needed to pass a budget to a simple majority, 
                  arguably further erodes Republicans' influence at the Capitol. 
                  Furthermore, while it may be too close to call at time of reporting, 
                  the Assembly composition will most likely change to 52 Democrats 
                  to 28 Republicans if the Democrats prevail in picking up Assembly 
                  District 5 which has been a Republican seat. Pre-election, the 
                  Assembly composition was 51 Democrats (this includes 1 Independent 
                  who tended to vote Democratic) to 29 Republicans. 
                However, 
                  at least the California Senate will likely remain 25 Democrats 
                  to 15 Republicans. Senate District 12 was a highly competitive 
                  race that was a priority for Senate Democrats; if they prevailed, 
                  it would have brought the Senate Democrats only one vote away 
                  from a super-majority. Carly Fiorina's loss to U.S. Senator 
                  Barbara Boxer was a big blow, but nationally, Republicans are 
                  happy as they've made tremendous strides overall by winning 
                  back the majority in the House of Representatives and several 
                  Governorships. In California, Republicans were able to keep 
                  the contested Congressional District 3 seat held by incumbent 
                  Congressman Dan Lungren. While it's still too close to call 
                  at time of reporting, Congressional District 11 held by Democrat 
                  Jerry McNerney may go to Republican candidate David Harmer.
                Good 
                  news includes the passage of Proposition 26 which requires certain 
                  state and local fees (hidden taxes) be passed by a two-thirds 
                  vote. Furthermore, with the rejection of Proposition 27 and 
                  the passage of Proposition 20, legislative and congressional 
                  lines will not be drawn by politicians. 
                The 
                  results of the general election are a game changer for California. 
                  What Jerry Brown does in office will have a tremendous effect 
                  on our industry and overall, will set the stage for the next 
                  decade. Please see attached for full results of California statewide 
                  offices, initiatives and legislative races.*
                _* 
                  The reported results above and attached are as of November 3 
                  at 9:31 a.m. (PST). These figures reflect between 82% to 100% 
                  of precincts partially or fully reporting. 
                