UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS FOR REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-576 Northeast Investors Trust (Exact name of registrant as specified in charter) 100 High Street Boston, MA 02110 (Address of principal executive offices) (Zip code) David Randall 100 High Street Boston, MA 02110 (Name and address of agent for service) Registrant's telephone number, including area code: 612-523-3588 Date of fiscal year end: September 30 Date of reporting period: December 31, 2009 Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 ($$ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. $ 3507. Item 1. Schedule of Investments. Schedule of Investments December 31, 2009 (Unaudited) Corporate Bonds, Notes & Preferred Securities - 86.28% Value Name of Issuer Principal (Note B) ---------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------- Advertising - 0.38% ---------------------------------------------------------------------------------------------------------------------------- Interpublic Group Co. Senior Unsecured Notes, 10%, 7/15/17 $ 3,000,000 $ 3,330,000 Automobile & Truck - 1.19% ---------------------------------------------------------------------------------------------------------------------------- Delphi Corp. Senior Unsecured Notes, 6.55%, 6/15/06 (a) (b) 36,950,000 369,500 United Rentals NA, Inc. Senior Notes, 6.5%, 2/15/12 (c) 10,000,000 9,975,000 ---------------- 10,344,500 Broadcast Cable TV - 3.83% ---------------------------------------------------------------------------------------------------------------------------- Charter Comm. Opt. LLC Senior Secured Notes, Series 144A, 10%, 4/30/12 (d) 32,500,000 33,393,750 Building Products - 0.69% ---------------------------------------------------------------------------------------------------------------------------- Builders Firstsource, Inc. Senior Secured Notes, FRN 4.5225%, 2/15/12 6,000,000 6,000,000 Chemicals - 6.87% ---------------------------------------------------------------------------------------------------------------------------- Kronos International, Inc. Senior Secured Notes, 6.5%, 4/15/13 EUR 12,866,000 14,921,472 Polyone Corp. Senior Unsecured Notes, 8.875%, 5/01/12 (c) 25,000,000 25,750,000 Reichhold Industries, Inc. Senior Notes, Series 144A, 9%, 8/15/14 (d) 7,315,000 6,144,600 Sterling Chemical, Inc. Senior Secured Notes, 10.25%, 4/01/15 13,740,000 13,121,700 ----------------- 59,937,772 Drug Stores - 1.90% ---------------------------------------------------------------------------------------------------------------------------- Rite Aid Corp. Senior Secured Notes, 9.75%, 6/12/16 3,000,000 3,255,000 Rite Aid Corp. Senior Secured Notes, 10.375%, 7/15/16 2,000,000 2,120,000 Rite Aid Corp. Senior Secured Notes, 7.5%, 3/01/17 11,398,000 10,714,120 Rite Aid Corp. Senior Secured Notes, Series 144A, 10.25%, 10/15/19 (d) 500,000 527,500 ----------------- 16,616,620 Electrical Equipment - 0.80% ---------------------------------------------------------------------------------------------------------------------------- Coleman Cable, Inc. Notes, 9.875%, 10/01/12 (c) 7,000,000 7,017,500 Electrical Utility - 4.96% ---------------------------------------------------------------------------------------------------------------------------- Mirant Americas Genr, Inc. Senior Unsecured Notes, 8.3%, 5/01/11 28,625,000 29,340,625 PSEG Energy Holdings Senior Unsecured Notes, 8.5%, 6/15/11 3,015,000 3,154,441 Sithe / Independence Funding Senior Secured Notes, 9%, 12/30/13 10,549,741 10,835,112 ----------------- 43,330,178 Energy/Natural Resources - 18.65% ---------------------------------------------------------------------------------------------------------------------------- Clayton Williams Energy Notes, 7.75%, 8/01/13 (c) 19,847,000 17,465,360 Comstock Resources, Inc. Senior Notes, 6.875%, 3/01/12 (c) 10,300,000 10,325,750 Comstock Resources, Inc. Notes, 8.375%, 10/15/17 18,000,000 18,405,000 Forest Oil Corp. Unsecured Notes, 8%, 12/15/11 9,890,000 10,310,325 Forest Oil Corp. Senior Unsecured Notes, 7.75%, 5/01/14 (c) 13,919,000 14,092,987 Gulfmark Offshore, Inc. Notes, 7.75%, 7/15/14 (c) 14,246,000 14,174,770 Key Energy Services, Inc. Notes, 8.375%, 12/01/14 4,340,000 4,350,850 Parker Drilling Co. Notes, 9.625%, 10/01/13 1,623,000 1,667,632 Stone Energy Corp. Senior Sub. Notes, 8.25%, 12/15/11 (c) 18,296,000 18,227,390 Stone Energy Corp. Senior Sub. Notes, 6.75%, 12/15/14 (c) 18,087,000 16,142,647 Swift Energy Co. Notes, 7.125%, 6/01/17 19,800,000 18,711,000 W & T Offshore, Inc. Notes, Series 144A, 8.25%, 6/15/14 (c) (d) 20,000,000 19,000,000 ---------------- 162,873,711 Entertainment - 5.24% ---------------------------------------------------------------------------------------------------------------------------- AMC Entertainment, Inc. Senior Sub. Notes, 8%, 3/01/14 26,780,000 25,574,900 AMC Entertainment, Inc. Notes, 11%, 2/01/16 10,000,000 10,450,000 Cinemark USA, Inc. Notes, Series 144A, 8.625%, 6/15/19 (d) 2,000,000 2,080,000 Wallace Theater Corp. Senior Secured Units, Series 144A, FRN 12.5%, 6/15/13 (d) 7,500 7,612,500 ---------------- 45,717,400 Financial Services - 7.43% ---------------------------------------------------------------------------------------------------------------------------- Bank of America Corp. Junior Sub. PFD, 8% (c) (e) 30,000,000 28,882,200 Bank of America Corp. Junior Sub. PFD, 8.125% (c) (e) 3,000,000 2,888,220 Finova Group, Inc. Notes, 7.5%, 11/15/09 (a) (b) 4,360,745 245,292 Wells Fargo & Co. Junior Sub. PFD, 7.98% (e) 32,818,000 32,900,045 ---------------- 64,915,757 Food Processing - 4.39% ---------------------------------------------------------------------------------------------------------------------------- B&G Foods, Inc. Notes, 8%, 10/01/11 (c) 1,000,000 1,017,500 Chiquita Brands Intl. Senior Notes, 7.5%, 11/01/14 14,150,000 14,008,500 Chiquita Brands Intl. Senior Unsub. Notes, 8.875%, 12/01/15 22,500,000 22,950,000 Mrs. Fields Brands Senior Secured PIK Notes, 10%, 10/24/14 (f) 1,041,188 385,240 ----------------- 38,361,240 Gaming - 3.75% ---------------------------------------------------------------------------------------------------------------------------- Las Vegas Sands Corp. Senior Secured Notes, 6.375%, 2/15/15 (c) 5,000,000 4,425,000 MGM Mirage, Inc. Senior Unsecured Notes, 8.5%, 9/15/10 (c) 17,030,000 16,944,850 Mandalay Resort Group Senior Sub. Notes, 9.375%, 2/15/10 (c) 10,000,000 9,950,000 Trump Entertainment Resorts, Inc. Senior Secured Notes, 8.5%, 6/01/15 (a) 69,914,327 1,441,983 Wimar Opco LLC / Fin. Corp. Senior Sub. Notes, 9.625%, 12/15/14 (a) 3,535,000 17,675 ---------------- 32,779,508 Home Furnishings - 1.33% ---------------------------------------------------------------------------------------------------------------------------- Norcraft Cos LP Notes, 9%, 11/01/11 (c) 11,600,000 11,614,500 Machine / Tools - 1.46% ---------------------------------------------------------------------------------------------------------------------------- Thermadyne Holdings Corp. Notes, 10.5%, 2/01/14 13,513,000 12,786,676 Marketing / Sales - 1.02% ---------------------------------------------------------------------------------------------------------------------------- Harry and David Operations Notes, 9%, 3/01/13 13,000,000 8,905,000 Office Electronics - 1.10% ---------------------------------------------------------------------------------------------------------------------------- Pitney Bowes International Holdings, Inc. PFD, Series 144A, 6.125% (d) 10,000 9,587,500 Packaging & Container - 11.77% ---------------------------------------------------------------------------------------------------------------------------- Ball Corp. Unsecured Notes, 6.875%, 12/15/12 1,000,000 1,012,500 Constar International Notes, FRN 3.6475%, 2/15/12 20,750,000 17,118,750 Jefferson Smurfit Corp. Notes, 8.25%, 10/01/12 (a) 15,250,000 13,420,000 Jefferson Smurfit Corp. Senior Unsecured Notes, 7.5%, 6/01/13 (a) 15,405,000 13,556,400 Owens-Brockway Glass Senior Secured Notes, 8.25%, 5/15/13 5,500,000 5,651,250 Owens-Brockway Glass Notes, 6.75%, 12/01/14 5,750,000 5,879,375 Smurfit-Stone Container Senior Unsecured Notes, 8%, 3/15/17 (a) 8,780,000 7,737,375 Stone Container Senior Notes, 8.375%, 7/01/12 (a) 8,000,000 7,080,000 Stone Container Notes, 7.375%, 7/15/14 (a) 5,000,000 4,706,250 Tekni-Plex, Inc. Senior Secured Notes, 10.875%, 8/15/12 2,000,000 1,807,500 Tekni-Plex, Inc. Senior Secured Notes, 8.75%, 11/15/13 27,500,000 20,246,875 Viskace Cos, Inc. Notes, Series 144A, 9.875%, 1/15/18 (d) 4,500,000 4,533,750 ---------------- 102,750,025 Paper/Forest Products - 2.42% ---------------------------------------------------------------------------------------------------------------------------- American Tissue, Inc. Senior Secured Notes, Series B, 12.5%, 7/15/06 (a) (b) (f) 14,061,292 98,429 Georgia-Pacific LLC Senior Unsecured Notes, 8.125%, 5/15/11 20,000,000 21,000,000 ----------------- 21,098,429 Publishing - 1.39% ---------------------------------------------------------------------------------------------------------------------------- Houghton Mifflin Co. Unsecured Notes, 7.2%, 3/15/11 13,000,000 12,106,250 Recreation / Leisure - 1.34% ---------------------------------------------------------------------------------------------------------------------------- Six Flags Operations, Inc. Notes, Series 144A, 12.25%, 7/15/16 (a) (d) 11,000,000 11,715,000 Retail Food Chains - 0.16% ---------------------------------------------------------------------------------------------------------------------------- Denny's Corp. Holding, Inc. Notes, 10%, 10/01/12 455,000 465,238 Planet Hollywood Secured PIK Notes, 9%, 3/30/10 (f) 1,643,148 961,242 ----------------- 1,426,480 Telecom Equipment - 4.21% ---------------------------------------------------------------------------------------------------------------------------- Qwest Corp. Senior Unsecured Notes, 7.875%, 9/01/11 12,000,000 12,570,000 Qwest Corp. Senior Unsecured Notes, 8.875%, 3/15/12 22,500,000 24,187,500 ----------------- 36,757,500 Total Corporate Bonds, Notes, & Preferred Securities - (cost -$925,487,873) $753,365,296 ----------------- Convertible Bonds Value Name of issuer Principal (Note B) ---------------------------------------------------------------------------------------------------------------------------- Convertible Bonds - 0.00% ---------------------------------------------------------------------------------------------------------------------------- Eurotunnel Group Tier 3, 3%, 7/28/10 GBP 74 12,807 ---------------- Total Convertible Bonds - (cost - $26,745) $12,807 ----------------- Foreign Bonds Value Name of issuer Principal (Note B) ---------------------------------------------------------------------------------------------------------------------------- Foreign Bonds - 0.25% ---------------------------------------------------------------------------------------------------------------------------- Republic of Argentina GDP Linked Security, FRN, 12/15/35 34,386,574 2,211,057 ---------------- Total Foreign Bonds - (cost - $1,423,421) $2,211,057 ----------------- Number of Value Stocks Shares (Note B) Name of issuer ---------------------------------------------------------------------------------------------------------------------------- Common Stock - 10.03% ---------------------------------------------------------------------------------------------------------------------------- Amtrol, Inc. (f) (g) 640,565 2,748,024 Citigroup, Inc. (g) 13,153,846 43,539,230 Core-Mark Holding Co., Inc. (g) 241,361 7,955,259 Groupe Eurotunnel SA (g) 5,424 50,769 International Airline Support Group (g) 219,540 70,253 Kronos Worldwide, Inc. (g) 270,700 4,398,875 MAXXAM, Inc. (f) (g) 800 2,180,000 NL Industries 510,200 3,540,788 Ormet Corp. (g) 372,638 801,172 The Penn Traffic Co. (g) 164,352 32,870 Polymer Group, Inc., Class A (g) 843,103 11,803,442 Prandium (g) 869,935 2,697 Romacorp, Inc. (f) (g) (h) 82,220 1,911,615 Safelite Realty Corp. (f) (h) 7,403 20,358 Sterling Chemical, Inc. (g) 250,827 1,755,789 Viskase Cos., Inc. (g) 2,096,128 6,497,997 Zemex Minerals Group, Inc. (f) (g) (h) 2,102 279,377 ---------------- Total Common Stocks - (cost - $235,836,517) $87,588,515 ----------------- Warrants Number of Value Name of Issuer Shares or Units (Note B) ---------------------------------------------------------------------------------------------------------------------------- Warrants - 0.07% ---------------------------------------------------------------------------------------------------------------------------- Core-Mark Holding Co., Inc. Warrants (f) (g) 48,142 610,441 ---------------- Total Warrants - (cost - $563,372) $610,441 ----------------- ---------------------------------------------------------------------------------------------------------------------------- Repurchase Agreement - 1.91% ---------------------------------------------------------------------------------------------------------------------------- State Street Bank & Trust Co. 16,646,041 Repurchase Agreement, 0.005% due 1/04/10 (i) ---------------- Total Repurchase Agreement - (cost - $16,646,041) $16,646,041 ----------------- Total Investments - 98.54% (cost - $1,179,983,969) 860,434,157 ----------------- Net Other Assets and Liabilities - 1.46% 12,738,427 ----------------- Net Assets - 100% $ 873,172,584 ================= (a) Non-income producing security due to default or bankruptcy filing. (b) Security is in principal default. As of date of this report, the bond holders are in discussion with the issuer to negotiate repayment terms of principal. (c) All or a portion of security has been pledged to collateralize short-term borrowings. (d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $94,594,600 or 10.83% of net assets. (e) Perpetual floating rate security. Rate shown reflects rate in effect at period end. (f) Security is valued at fair value as determined in good faith under consistently applied procedures approved by the Board of Trustees. (g) Non-income producing security. (h) All or a portion of security is restricted. The aggregate market value of restricted securities as of December 31, 2009 is $2,211,350 which represents 0.25% of total net assets. All of these securities are deemed to be liquid. Additional information on each holding is as follows: Security Acquisition Date Acquisition Cost Romacorp, Inc. 11/15/06 $ 4,118,756 Safelite Realty Corp. 09/29/00 $ 965,195 Zemex Minerals Group, Inc. 04/10/08 $ 386,221 (i) Acquired on December 31, 2009. Collateralized by $17,148,782 of Fannie Mae securities due through 8/15/39. The maturity value is $16,646,050. EUR Principal is denoted in Euros PIK Payment in Kind GBP Principal denoted in British Pounds Sterling FRN Floating Rate Note PFD Preferred Security Accounting Standards Codification ASC 820, "Fair Value Measurements and Disclosures" (ASC 820) established a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Trust's own market assumptions (unobservable inputs). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The various inputs that may be used to determine the value of the Trust's investments are summarized in the following fair value hierarchy: Level 1 - Unadjusted quoted prices in active markets for identical securities. Level 2 - Other significant observable inputs based on data obtained from various pricing sources (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Level 3 - Significant unobservable inputs (including the Trust's own assumptions used to determine the fair value of investments). The following table summarized the Trust's investment as of December 31, 2009, based on the inputs used to value them. Level 1 Level 2 Level 3 Total Corporate Bonds - $ 751,920,385 $ 1,444,911 $ 753,365,296 Common Stocks 80,449,141 - 7,139,374 87,588,515 Foreign Bonds - 2,211,057 - 2,211,057 Convertible Bonds - 12,807 - 12,807 Warrants - - $ 610,441 610,441 Repurchase Agreement - 16,646,041 - 16,646,041 ------------ ------------- ----------- ------------- Total $ 80,449,141 $ 770,790,290 $ 9,194,726 $ 860,434,157 ============ ============= =========== ============= The following is a reconciliation of the Trust's Level 3 investments for which significant unobservable inputs were used in determining value at December 31, 2009. Corporate Common Bonds Stocks Warrants Total Beginning Balance September 30, 2009 $ 2,690,282 $ 5,693,878 $ 428,464 $ 8,812,624 ------------ ------------ ----------- ------------ Net realized gains/(losses) - - - - Net change in unrealized appreciation/(depreciation) (1,245,371) (734,504) 181,977 (1,797,898) Net purchases/(sales) - - - - Transfers in/(out) - 2,180,000 - 2,180,000 ------------ ----------- ---------- ------------- Ending Balance December 31, 2009 $ 1,444,911 $ 7,139,374 $ 610,441 $ 9,194,726 ============= ============ ========== =============
Item 2. Controls and Procedures. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits. Certifications pursuant to Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) and Section 302 of the Sarbanes-Oxley Act of 2002 are filed herewith. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Northeast Investors Trust By (Signature and Title) /s/ Bruce H. Monrad Bruce H. Monrad President (principal executive officer) Date: February 26, 2010 By (Signature and Title) /s/ Gordon C. Barrett Gordon C. Barrett Treasurer (principal financial officer) Date: February 26, 2010 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. (Registrant) Northeast Investors Trust By (Signature and Title) /s/ Bruce H. Monrad Bruce H. Monrad President (principal executive officer) Date: February 26, 2010 By (Signature and Title) /s/ Gordon C. Barrett Gordon C. Barrett Treasurer (principal financial officer) Date: February 26, 2010 Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act I, Bruce H. Monrad, certify that: 1. I have reviewed this report on Form N-Q of Northeast Investors Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 26, 2010 /s/ Bruce H. Monrad Bruce H. Monrad President (principal financial officer) Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act I, Gordon C. Barrett, certify that: 1. I have reviewed this report on Form N-Q of Northeast Investors Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 26, 2010 /s/ Gordon C. Barrett Gordon C. Barrett Treasurer (principal financial officer)