January 1, 2007

Investment Policy Statement

For

Name of Organization

SCOPE OF THIS INVESTMENT POLICY

This statement of investment policy reflects the investment policy, objectives, and constraints of ___________________ investments. POLICY CONSIDARATIIN INVESTMEN T STRATEGY INVESTMENT PROCEDURES PORTFOLIO REVIE AND PERFORMAMCE

PURPOSE OF THIS INVESTMENT POLICY STATEMENT

This statement of investment policy is set forth by _________ Board of Directors in order to: 1. Define and assign the responsibilities of all involved parties. 2. Establish a clear understanding for all involved parties of the investment goals and objectives of Fund assets.

3. Offer guidance and limitations to all Investment Managers regarding the investment of Fund assets. 4. Establish a basis for evaluating investment results. 5. 6. Manage Fund assets according to prudent standards as established in common trust law. Establish the relevant investment horizon for which the Fund assets will be managed.

In general, the purpose of this statement is to outline a philosophy and attitude which will guide the investment management of the assets toward the desired results. It is intended to be sufficiently specific to be meaningful, yet flexible enough to be practical.

DELEGATION OF AUTHORITY
The _____________ Executive Committee is a fiduciary, and is responsible for directing and monitoring the investment management of Fund assets on behalf of ________. As such, the Executive Committee is authorized to delegate certain responsibilities to professional experts in various fields. These include, but are not limited to:

1. Investment Management Consultant. The consultant may assist the Executive Committee in: establishing investment policy, objectives, and guidelines; selecting investment managers; reviewing such managers over time; measuring and evaluating investment performance; and other tasks as deemed appropriate.

2.

Investment Manager. The investment manager has discretion to purchase, sell, or hold the specific securities that will be used to meet the Fund's investment objectives. Custodian. The custodian will physically (or through agreement with a sub-custodian) maintain possession of securities owned by the Fund, collect dividend and interest payments, redeem maturing securities, and effect receipt and delivery following purchases and sales. The custodian may also perform regular accounting of all assets owned, purchased, or sold, as well as movement of assets into and out of the Fund accounts. Additional specialists such as attorneys, auditors, actuaries, retirement plan consultants, and others may be employed by the Executive Committee to assist in meeting its responsibilities and obligations to administer Fund assets prudently.

3.

4.

The Executive Committee will not reserve any control over investment decisions, with the exception of specific limitations described in these statements. Managers will be held responsible and accountable to achieve the objectives herein stated. While it is not believed that the limitations will hamper investment managers, each manager should request modifications which they deem appropriate. If such experts employed are also deemed to be fiduciaries, they must acknowledge such in writing. All expenses for such experts must be customary and reasonable, and will be borne by the Fund as deemed appropriate and necessary.

DEFINITIONS
1. 2. "Fund" shall mean the _____________ Investment portfolio. "Executive Committee" shall refer to the Committee authorized to administer the Fund as specified by applicable ordinance.

3.

"Fiduciary" shall mean any individual or group of individuals that exercise discretionary authority or control over fund management or any authority or control over management, disposition or administration of the Fund assets. "Investment Manager" shall mean any individual, or group of individuals, employed to manage the investments of all or part of the Fund assets. "Investment Management Consultant" shall mean any individual or organization employed to provide advisory services, including advice on investment objectives and/or asset allocation, manager search, and performance monitoring.

4.

5.

6. "Securities" shall refer to the marketable investment securities which are defined as acceptable in this statement.

7. "Investment Horizon" shall be the time period over which the investment objectives, as set forth in this statement, are expected to be met. The investment horizon for this Fund is 3-5 years. [Beneficiaries defined as: ________________ ]

GENERAL INVESTMENT PRINCIPLES

1. 2. Investments shall be made solely in the interest of the Fund. The Fund shall be invested with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the investment of a fund of like character and with like aims. Cash is to be employed productively at all times, by investment in short term cash equivalents to provide safety, liquidity, and return.

3.

INVESTMENT MANAGEMENT POLICY

1. Preservation of Capital - Consistent with their respective investment styles and philosophies, investment managers should make reasonable efforts to preserve capital, understanding that losses may occur in individual securities. 4

2.

Risk Aversion - Understanding that risk is present in all types of securities and investment styles, the Finance Committee recognizes that some risk is necessary to produce long-term investment results that are sufficient to meet the Fund's objectives. However, the investment managers are to make reasonable efforts to control risk, and will be evaluated regularly to ensure that the risk assumed is commensurate with the given investment style and objectives.

3. Adherence to Investment Discipline - Investment managers are expected to adhere to the investment management styles for which they were hired. Managers will be evaluated regularly for adherence to investment discipline. 4. Liquidity The ______________ services require the ability to deposit and withdraw funds on a continuous basis. Investment managers therefore should make decisions that will maximize returns through short term investments, while understanding the need for liquidity. 5. Long Term Investments a portion of the Funds overall portfolio will be invested in long term growth mechanisms. This amount will be determined either as a percentage of the overall fund or a fixed amount of the fund by the _________ Finance Committee on the advice of the investment managers. 6. Alternative Fund Sources this fund may receive funds from various sources which have their own specific investment policies in place. The sources of these funds may come from planned giving or estate planning, foundation sources or others. In these cases, this investment policy will be modified to reflect those conditions and subsequently guide investment managers in the handling of those specific funding mechanisms.

INVESTMENT OBJECTIVES
In order to meet its needs, ___________s investment emphasizes capital growth with some focus on income. objective

SPECIFIC INVESTMENT GOALS

Over the investment horizon established in this statement, it is the goal of the aggregate Fund assets to exceed: An absolute rate of return of 6-9%, including fixed income. The investment goals above are the objectives of the aggregate Fund, and are not meant to be imposed on each investment account (if more than one account is used).

DEFINITION OF RISK
The Investment Committee realizes that there are many ways to define risk. It believes that any person or organization involved in the process of managing __________s assets understands how it defines risk so that the assets are managed in a manner consistent with the Fund's objectives and investment strategy as designed in this statement of investment policy. The Executive Committee considers the tolerance for risk to be classified as medium. That is, comfortable with fluctuations in the portfolio, and the possibility of larger declines in value, in order to grow the portfolio over time. _______s risk/return trade-off is classified as moderate.

ASSET ALLOCATION
Based on _______s profile, the asset allocation will be 60% Equity, 40% Fixed Income. Due to the need for fund liquidity, it may be necessary to make investments on short term deposits that are lower return/lower risk. This may necessitate balancing the fund with higher risk investments for the remainder of the fund in order to achieve the desired rates of return.

GUIDELINES FOR FIXED INCOME INVESTMENTS AND CASH EQUIVALENTS

The mutual funds selected have been evaluated by Consulting Group Research Analysts who conduct a screening process that includes both quantitative and qualitative criteria. Investment options are reviewed periodically to ensure that high-quality standards are maintained. The 6

overall process seeks to ensure that the investment strategies implemented will be compatible with ________ EAPs return requirements and tolerance for risk.

PERFORMANCE REVIEW AND EVALUATION

Performance reports generated by the Investment Consultant shall be compiled at least quarterly and communicated to the Executive Committee for review. The investment performance of total portfolios, as well as asset class components, will be measured against commonly accepted performance benchmarks. Consideration shall be given to the extent to which the investment results are consistent with the investment objectives, goals, and guidelines as set forth in this statement. The Investment Committee intends to evaluate the portfolio(s) over at least a three year period, but reserves the right to terminate a manager for any reason including the following: 1. Investment performance which is significantly less than anticipated given the discipline employed and the risk parameters established, or unacceptable justification of poor results. Failure to adhere to any aspect of this statement of investment policy, including communication and reporting requirements. Significant qualitative changes to the investment management organization.

2. 3.

Investment managers shall be reviewed regularly regarding performance, personnel, strategy, research capabilities, organizational and business matters, and other qualitative factors that may impact their ability to achieve the desired investment results.

INVESTMENT POLICY REVIEW

To assure continued relevance of the guidelines, objectives, financial status and capital markets expectations as established in this statement of investment policy, the Executive Committee plans to review this investment policy at least annually. This statement of investment policy is adopted on __________________, ___ 20__ by the ___________ Board of Directors, executed by the Executive Committee whose signatures appear below. ______________________________ 7 ______________________________

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