William Keith Watkins

Capital Income Builder Fund Class F — E ( 1

Rental - DQV, LLC (51% interest), Troy, AL — Int/Div

Pike Co. Al. Farm #1] (2/3 interest) — None

Pike Co. Al. Farm #1 (2/3 interest) Mineral — None

Law Office (1/3 interest), Troy, AL — None — Sell — Curtis

4 Farm (1/4 interest), Coffee County, AL — None

North Carolina Lot — Rent

North Carolina Lot 2 — None

North Carolina Land — None

JBW Office, Troy, AL — Rent — SELL — Athens Development

Bam Property (1/2 interest) Troy, AL — None

Pike Co. Farm #2 — None

Pike Co. Farm #2 - Mineral — None

Pike Co. Lot (1/2 interest) — None

Pike Co. Farm #3 — None

Pike Co. Farm #4 — None

Pike Co. Farm #4 - Mineral — None

Pike Co. Farm #5 — None — Sell — 2006-02, LLC

Pike Co. Farm #5 - Mineral — None

Pike Co. Farm #6 (19% interest) — None

Pike Co. Farm #6 (19% interest) - Mineral — None

CKT, LLC (1/3 interest), Real Estate Development — Int/Div

WE, LLC (50% interest) — None

Powermaster, Inc. (1/3 interest) — None

A.GE, Jt. Ten/Centennial Money Mkt Trust — Int/Div

A.G.E. TMW IRA" Coca Cola Co — Int/Div — Sell

Regions Financial Corp. - common — Int/Div

Investment Co. of America — Int/Div

A.GE.- WKW - SEP Centennial Money Mkt Trust — Interest

American Int'l Group - Common — Int/Div — Sell

Chevron Texaco Corp. - Common — Int/Div — Sell

Cisco Systems, Inc. - Common — Int/Div — Sell

Citi Group, Inc. - Common — Int/Div — Sell

Coca Cola - Common — Int/Div — Sell

Colonial Property Trust — Int/Div — Sell

Comcast Corp. - Common — Int/Div — Sell

Conoco Phillips - Common — Int/Div — Sell

Exxon Mobil - Common — Int/Div — Sell

General Dynamics Corp. - Common — Int/Div — Sell

General Electric Co. - Common — Int/Div — Sell

Hersheys Food Corp. - Common — Int/Div — Sell

Intel Corp. - Common — Int/Div — Sell

IBM - Common — Int/Div — Sell

Johnson & Johnson - Common — Int/Div — Sell

Lowe's - Common — Int/Div — Sell

MBNA - Common — Int/Div — Sell

Microsoft - Common — Int/Div — Sell

Nextex - Common — Int/Div — Sell

Pfizer - Common — Int/Div — Sell

Southwest Airline Co. - Common — Int/Div — Sell

Target Corporation - Common — Int/Div — Sell

Time Wamer - Common — Int/Div — Sell

United Technology - Common — Int/Div — Sell

Viacom - Common — Int/Div — Sell

Wachovia Corp. - Common — Int/Div

Wal-Mart Stores, Inc. - Common — Int/Div — Sell

Wal-Green Co. - Common — Int/Div — Sell

CHS -401(k)’ Scudder Fig. Inv, Val Builder A — Int/Div — Sell — Scudder

CHS Company Stock Fund — Int/Div — Sell

E.D. Moseley Note — None

Accts Recev - Law Firm Calhoun Faulk Watkins & Faircloth — None — Sell — Curtis

Law Firm - 1/3 interest Calhoun Faulk ‘Watkins & Faircloth — None — Sell — Curtis

Wachovia Bank - Dimensions Acct — Interest

Principal: Variable Universial Life Policy — Int/Div

Principal #302 WKW 318 Variable Universal Life — Int/Div

Northwestern Mutual TM 010 Extraordinary Life B — Int/Div

Northwestern Mutual WKW 575 Extraordinary Life — Int/Div — Redemption — Mutual

Capital Income Builder Fund Class F — Int/Div

Manager/Sole Member, Rosewood Martin, LLC (Pike Co. Farm #5)

Income — 2006 — Vickers & Smith - Referral Fee from 2005 - Net — $ 20,000

Income — 2006 — Calhoun Faulk Watkins & Faircloth, LLC - Net income from former firm for fees - earned prior to entry into service with court -Net — $74,816

Income — 2006 — Northwestern Mutual - 1099R Taxable gain on insurance policy - cashed - Net — $3,512

Income — 2005 — Calhoun Faulk Watkins & Faircloth, LLC — $273,266

Income — 2005 — South Trust Bank - Director's Fee — $ 1,000

Income — 6.2004 — Calhoun Faulk Watkins & Faircloth, LLC — $201,551

Income — 7.2004 — South Trust Bank - Director's Fee — $1,200

Spouse's income — 2006 — Troy University Salary

Spouse's income — 2005 — Troy Regional Hospital Salary

Spouse's income — 2005 — Troy University Salary

Spouse's income — 2004 — Troy Regional Hospital Salary

In Section VII:

GENERAL EXPLANATORY NOTE:

This is filer's first annual report. Sworn in January 12, 2006. Nominee Report filed 10/3/05 for 1/1/04 to 8/31/05 reporting period. During gap from 8/31/05 until

12/31/08, filer had several transactions in contemplation of leaving private practice of law and moving family to duty station. This includes several items in

Section VII that appeared in the Nominee Report, but that do not appear in this report, including items on nomination report lines 3, 4 and 26. These transactions

also resolved several liabilities in Section VI.

Item 7 was purchased in 2005 after nomination report but before entry into service.

Item 8 appeared as Item 10 in nomination report.

Items 25, 26 and 27 are or were held in an A. G. Edwards IRA for aP- Item 68 is held in 401K) Ge

Items 28 through 57 are or were held in an A. G. Edwards SEP for filer.

Item 63 on Nominee Report, which is also Item 59 on this report, was rolled over to Item 68 on this report.

Item 64 on Nominee Report incorrectly identified this policy as Northwestern Mutual.

Items 69 and 71 were inadvertently left off of the Nominee Report. The Nominee Report is being amended to reflect these Items.

Item 70 was purchased on 3 occasions in varying amounts:

9/18/06 - $15,000

9/25/06 - $20,000

10/6/06 - $15,000

Item 72 was purchased on 5 occasions in varying amounts:

9/18/06 - $15,000

9/25/06 - $20,000

10/6/06 - $15,000

10/11/06 - $ 2,500

10/17/06 - $30,600