Opening Remarks

Chairman’s Welcome: Mr. Gerret CopelandPresident’s Remarks: Mrs. Carolyn BurgerApproval of 2009 Annual Meeting MinutesGovernance Report: Mr. Stuart Grant

Opening Remarks

Honoring Carol Burger: Mr. Gerret CopelandCarolyn S. Burger has served on theMuseum’s Board since 2004. She has Chaired the Finance Committee, served as VicePresident and for the past two years asPresident of the Board. We are deeply indebted to Carol for her leadership duringthese challenging times.

Governance Report

We are deeply grateful to the following individuals who have completed their terms:•Phyllis Aerenson•Carol Ammon•Denni Ferrara•Havidan Rodriguez (resigned January 2011)•Larry Zutz

Governance Report

Up for re-election for a second three-year term:•Uma Chowdhry•Elva Ferrari•Stuart Grant•Wanda Lopez

Governance Report

Nominee for election to the Board of Trustees:David G. Bills is Senior Vice President of Corporate Strategy at DuPont. He joined DuPont in May 2001 as VP of DuPont Corporate Plans and has since held positions of Vice President and General Manager of each DuPont Displays, DuPont Fluoroproducts, and DuPont Global Biotechnology; as well as Senior Vice President and Chief Marketing and Sales Officer. He was named to his current position in November 2009. Prior to joining DuPont, Mr. Bills was a partner in the Chicago office of McKinsey & Company, providing strategic guidance and consultation to industrial and technology companies. At McKinsey, Mr. Bills served as co-leader of the firm's worldwide Growth Strategy Practice and was a member of the Corporate Finance and Industrial Marketing Practices. Mr. Bills received his BS degree in Chemical Engineering from the University of Wisconsin in 1983 and his master of business administration from Harvard Business School in 1989. From 1984 - 1987 he worked at Exxon as a process engineer and operations manager in the Baytown, Texas, refinery. He lives in Wilmington with his wife and two daughters.

David G. BillsSenior VP DuPont

Governance Report

Nominee for election to the Board of Trustees:Roberts W. Brokaw III has 36 years of investment banking experience. Prior to his relocation to Delaware in 2002, he was based in New York City, most recently as Senior Managing Director, Structured Products Group, at Bear, Stearns & Co. Inc. Prior to Bear Stearns, he was a Managing Director and head of the Corporate Finance Group at PaineWebber Incorporated and before that, he performed similar duties as a Managing Director at Merrill Lynch. Mr. Brokaw received an MBA with distinction from Harvard Business School; and was jointly awarded BA and MA degrees in Economics from Yale University, with high honors in his major, magna cum laude. In recent years, he has been an Adjunct Professor of Finance in New York University’s MBA program and a Senior Professional Fellow at NYU’s Center for Law and Business. Roberts Brokaw LLC provides senior-level corporate finance perspective to owners, lenders, managements, boards of directors, law firms and government agencies. Mr. Brokaw is a great grandson of the artist Howard Pyle.

Robers W. Brokaw IIIPrincipal, Roberts Brokaw LLC

Governance Report

Nominee for election to the Board of Trustees:Charles M. Elson is the Edgar S. Woolard, Jr., Chair in Corporate Governance and the Director of the John L. Weinberg Center for Corporate Governance at the University of Delaware. He is also "Of Counsel" to the law firm of Holland & Knight. He formerly served as a Professor of Law at Stetson University College of Law. His fields of expertise include corporations, securities regulation and corporate governance. He is a graduate of Harvard College and the University of Virginia Law School, and has served as a law clerk to Judges J. Harvie Wilkinson III and Elbert P. Tuttle of the United States Court of Appeals for the Fourth and Eleventh Circuits. He is a Salvatori Fellow at the Heritage Foundation in Washington, D.C. and a member of the American Law Institute. Professor Elson has written extensively on the subject of boards of directors. He is a frequent contributor on corporate governance issues to various scholarly and popular publications. He is Vice Chairman of the ABA Business Law Section’s Committee on Corporate Governance. His wife, Aimee, served as a Delaware Art Museum trustee from 2002-2008.

Charles M. ElsonUniversity of Delaware

Governance Report

Nominee for election to the Board of Trustees:As managing director of Wilmington Family Office Jack leads and supports thirty-five highly seasoned professionals serving prominent multi-generational families, executives, business owners, and entrepreneurs. The families Jack works with rely on him to help manage the multi-dimensional aspects of their family’s financial affairs, including: serving the role of executive director, advisor, and confidant, as well as developing intergenerational strategies customized to best meet their needs. Jack has more than three decades of experience in providing advice and overseeing the execution of financially-related solutions for wealthy families, which includes the strategic leadership and business management responsibilities associated with oversight of multiple family offices and other entities. Jack holds an MBA in Taxation from Drexel University and earned his bachelor’s degree from Villanova University. He serves as director to NAEPC (National Association of Estate Planners and Councils) and as director on numerous family foundations and various professional and community committees.

John P. “Jack” Garniewsky, Jr.Wilmington Family Office

Governance Report

Nominee for election to the Board of Trustees:Alicia Hughes recently joined the Delaware Biotechnology Institute of Newark, DE (DBI) as its new Associate Director. She attended Texas Southern University as a Douglass Honors Institute Scholar, and earned a BS degree in biology with minors in biomedical engineering and organic chemistry in 1996. Immediately after college, she spent two years as a sixth grade science teacher in a suburban Houston school district. Thereafter, she went on to receive her juris doctor degree from the University of Miami School of Law, with concentrations in intellectual property, health policy and international and comparative law in 2002. In 2009 she received a competitive scholarship to the University of Virginia and has since been designated a Sorensen Institute Fellow for Political Leadership. Ms. Hughes is also involved in the outreach program “STEM,” an effort to increase awareness of career and education opportunities in science, technology, engineering and mathematics.

Alicia HughesDelaware Biotechnology Institute

Finance ReportMike Miller, Chief Financial Officer

2006 2007 2008 2009 20100

1000000

2000000

3000000

4000000

5000000

6000000Operating Expense, Operating Revenue & Attendance

Operating Expense Operating Revenue

Operating Results--2010 vs. prior years

Membership, 99,428

Special Events, 26,700

Government Grants, 157,983

Programs, 231,846

Earned Income, 174,710Contributions, 1,471,501

Admissions, 49,159

2010 Operating Revenue

2010 Operating Revenue $2,210,787(2009 $2,308,619)

Salaries & Benefits, 2,037,874

Building/Operations, 566,093

Exhibits & Programs,

390,704

Public Support, 152,466

Administration, 187,606

Earned Income, 98,917

2010 Operating Expense

2010 Cash OperatingExpenses $3,433,660(2009 $4,157,205)

Museum Employees

2007 2008 2009 20100

10

20

30

40

50

60

37 3527 26

1514

11 12 Part Time

Full Time

Investments and Cash

2006 2007 2008 2009 2010 -

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

$28.6

$32.9

$21.2$24.3

$25.9

Bond Issue Update

Agreement reached with Wells Fargo to extend letter of credit securing bonds to October 2013 on very favorable terms

Museum will redeem $4 million of bonds by June 30, provide mortgage to Museum property and agree to covenants to grow endowment

Director’s ReportWinter 2010

A Diverse Array of Exhibitions

Some Wonderful New Acquisitions!

Festival of Goblins

Art Excursions for Pre-KSchool Tours

“You could take me to the Museum as many times as you wanted to and I would never get bored.”– comment from Warner Elementary School 2nd grader

Many Memorable Programs

Hispanic Heritage

Concerts

Looking Ahead: 2011-2012

Perception/Deception: Illusion in Contemporary ArtMembers Opening May 20 – September 2011

Larry KaganSteel with shadow

Chul-Hyun AhnPlywood, lights, mirror, found braches

Mary Temple, Installation in Fusco Hall

Robert Lazzarini, Gun

Looking Ahead: 2011-2012Howard Pyle: American Master Rediscovered

November 12, 2011 – Jan./Feb. 2012

Thomas Eakins, Rush Carving Allegory of the Schuylkill, 1876-77, Philadelphia Museum of Art

Looking Ahead: 2011-2012

Some Centennial Treats include:

A Centennial Gala on November 12, 2011A New Year’s Celebration in partnership with the Delaware Symphony Orchestra on December 31, 2011State-wide partnerships, programs and eventsAn Exhibition devoted to the art of Mary Page EvansA Major Juried exhibition of regional artAn exhibition celebrating 100 years ofCollecting at the Delaware Art MuseumAn exhibition of Contemporary Illustrators influencedBy Howard PyleLots of wonderful programs, parties and events!

Thank you to all our wonderful Members! We couldn’t be great without you!