"Stop Processing More Rules" executes on emails that either fail or pass a rule.

I have the following three rules in the following order.  There are a few rules prior to the first one in this list and there are many after the third one in this list.  However, these rules highlight the problem I am having.

•  Incoming Email – 3 (client-only)

Apply this rule after the message arrives

display Incoming Email – 3 in the New Item Alert window

 

1. IN – Process Incoming Personal Emails – Rule 2 (client-only)

Apply this rule after the message arrives

 sender is in Contacts Address Book

   and on this computer only

display Processing Rule 2 in the New Item Alert window

  and move it to the ToDo – Personal folder

  and stop processing more rules

 

1. Incoming Email – 4 (client-only)

Apply this rule after the message arrives

display Incoming Email – 4 in the New Item Alert window

 

In rule 2, I am trying to capture those emails that are personal emails and exist in my local Outlook 2010 address book.  I have a choice of the following address books.

 Outlook Address Book

  Contacts

  Suggested Contacts

Mobile Address Book

  Contacts (Mobile)

  Suggested Contacts (Mobile)

Global Address List

All Address Lists

  All Contacts … (hundreds) Corporation wide

The Alerts I get are (first three are from previous rules)

Incoming Email

Incoming Email – 1

Incoming Email – 2

Incoming Email – 3

 Any email that is unknown and does not exist in any of my address books will apparently fail at the second rule and not move on.  It seems that the “stop processing more rules” is executed regardless if the rule is successful or not.  If it was successful, the email would have been moved to a different folder.  Because it is failing, the message is not displayed, but the mail stays in the Inbox