The Directed Account Plan Board of Directors terminated the Legg Mason Opportunity Fund in the Diversified Small Co. Stock Option.  This fund was terminated due to consistent poor performance.   The assets were temporarily reallocated to the BGI Small Company Index until a suitable small cap growth manager replacement is found.  A rebalancing of the Diversified Small Cap Stock Options has resulted in the following target allocations:

The Fidelity Low-Priced Stock Fund, a mutual fund in the Fidelity Window, has recently re-opened.  Click here for the Fidelity Low-Priced Stock Fund fact sheet.

The Directed Account Plan Board of Directors has terminated the First Eagle Overseas and Century Small Cap Select Instl. funds in December.    These funds were terminated due to consistent poor performance.   The fund, ishares Morningstar Small Growth Index, was added to the Diversified Small Co. Stock Option this month.  A rebalancing of the International Stock and Diversified Small Cap Stock Options has resulted in the following target allocations:

The Royce International Value Fund was added to the International Stock Option this month.   This is a new fund with a 12/29/06 inception date.  The manager of this fund is very experienced with a proven international small cap value stock picking process.  The manager has a solid performance track record.  Be sure to visit www.401k.com for your own account information. The target asset allocations for this option were revised as shown:

The Neuberger Berman Regency Fund was replaced with the Neuberger Berman Partners Fund this month.  Both funds are run by the same manager but the Neuberger Berman Partners fund provides more mid-cap stock exposure. Be sure to visit www.401k.com for your own account information. The asset allocation remains the same:

The Morgan Stanley US Small Cap Value Instl. Fund was added to the Diversified Small Co. Stock Option this month.  This new fund has a strong track record and should provide more value exposure to this option. The assets have been reallocated in the option as follows:

The T. Rowe Price Growth Stock Fund and Primecap Odyssey Growth Fund were added to the Growth Stock Option this month.  These new funds have strong track records and should provide more large cap exposure to this option. The assets have been reallocated to the Growth Stock Option as follows:

The Directed Account Plan Board of Directors have terminated the TCW Select Equities I, Janus Small Cap Value and Longleaf Partners International funds effective August 18, 2006.  These funds were terminated due to consistent poor performance.   A rebalancing of the affected Growth Stock, International Stock and Diversified Small Cap Stock Options has resulted in the following target allocations, effective August 18, 2006:

*The assets of the TCW Select Equities I fund have been allocated to the BGI Growth Index until a suitable replacement manager is identified.

**The assets of the Janus Small Cap Value fund have been allocated to the BGI Small Company Index until a suitable replacement manager is identified.

Call The DAP Service Center 1-877-489-2327 for a fact sheet/prospectus on any of the above funds. Click on the funds above to view their fund fact sheet.

The Directed Account Plan
3221 McKelvey Rd. Ste 105
Bridgeton, MO 63044
314-739-7373
Fax: 636-739-7978

Alternate Pilot Board Member

Job Description: This individual serves as the alternate to the Pilot Board Members who represent the Directed Account Plan participants.  The Pilot Board Members’ duty is to oversee the Plan by utilizing their investment education and experience to insure that the participants are well served.  Since this is an alternate position, this individual will train under the Pilot Board Members.  In the event that a Pilot Board Member should resign, this individual will be considered as the replacement Pilot Board Member.

Job Applicant Requirements: Applicants must be a former TWA Pilot and have a current balance in The Directed Account Plan.  Investment education and experience is important to perform the job duties.

Responsibilities & Powers: As an Alternate Pilot Board Member, the primary duty is to learn the responsibilities and powers of the Pilot Board Members.  This will require attendance of several manager reviews and the four Board of Directors Meetings each year.  The responsibilities and powers of the Pilot Board Members are as follow:

1. Shall select, terminate, replace, and monitor the Plan Administrator, the Trustee and the record keeper.  Shall approve, oversee, execute, alter, and renew or terminate all contracts and agreements with providers of service whose fees are paid by the Plan.
2. May select, terminate, replace, monitor, and direct Investment Managers and shall formulate objectives and guidelines for Investment Funds.
3. Shall select, add, subtract, and monitor Investment Funds.
4. May contract for reasonable and necessary services for the operation of Plan assets.
5. May approve the Plan’s purchase of fiduciary liability insurance.
6. Shall approve an annual budget covering all expense paid by the Plan.

Compensation: This position will be compensated for each meeting attended at a predetermined hourly rate taking into consideration flight pay loss, travel expenses and other associated expenses.

How to Apply: Please send resume and short statement of your interest in the position to:

Email – [email protected]

Mail – The Directed Account Plan
3221 McKelvey Road Ste. 105
Bridgeton, MO 63044

Good News! There will no longer be a 10 basis point fee on assets held by DAP participants in Fidelity Funds.  This fee was necessary to offset plan expenses with the prior record keeper but is no longer necessary with Fidelity as the record keeper.

The Fidelity Board of Trustees has also changed their redemption fee policy. Effective May 31, 2006, the following DAP transactions will be exempt from a redemption fee:

• Minimum required distributions
• Systematic withdrawal program (SWP) (DAP distributions on 15th of each month)
• Redemptions associated to death, disability or a Qualified Domestic Relation Order

Transfer freeze policy with a pending distribution –

Fidelity will now allow you to delay your pending distribution (SWP or partial) a short time without additional paperwork to accommodate your transfer when you request one.  You will not be prevented from transferring funds on any day when the market is open.

The Directed Account Plan Board of Directors has terminated the Neuberger Berman Focus and Legg Mason Special Investment Trust mutual funds.  The CGM Focus and Goldman Sachs Mid Value Instl. mutual funds have been added to this option.  These funds have a strong track record and management team that the Board believes will enhance this option’s return performance.  A rebalancing of the option has resulted in the following target allocation, effective 12/28/05:

Call The DAP Service Center 1-877-489-2327 for a fact sheet/prospectus on any of the above funds.  Click on the funds above to view their fund fact sheet.  Call CGM Focus at 1-800 345-4048 or Goldman Sachs at 1-800-526-7384 to request a Prospectus.