Short term reserves are funds that will be needed for the operation and expected expenses for specific programs of the foundation. There will also be a reserve of up to five percent of the account held in anticipation of unexpected emergencies. These funds will be invested in short term obligations that can be converted to cash on short notice.

Fixed income investments that can be considered for investment of the assets of the funds are as follows: obligations of the U.S. Government and its agencies, including Treasury Notes and Bonds; zero coupon bonds (U.S. Treasury Strips); Federal Home and Long Bank Bonds, Federal Farm Credit Bonds, Federal National Mortgage Association Bonds, Federal Land Bank Bonds, Government National Mortgage Association Bonds, Federal Home Loan Mortgage Corporation Bonds; corporate bonds of U.S. corporations; and institutional fixed income mutual funds whose portfolios consist of allowable securities.

At the time of purchase, Corporate Debt securities must meet or exceed a credit rating of "A / A3" from Standard and Poor's or Moody's. Corporate Debt securities whose credit rating is subsequently downgraded below "A /A3", may be held only. Corporate securities downgraded below investment grade (BBB / Baa) must be liquidated within 30 days.

The weighted average maturity of the fixed income portion of the portfolio shall not exceed ten years.

Within the above guidelines of security selection and quality, the Investment Manager shall have full responsibility for security and diversification subject to the following limitations

Investments in securities of a single issuer, with the exception of the U.S.

The Investment Manager will have considerable discretion over asset turnover and allocation of fixed income holdings among selected securities and issuers within the limits described above.

The total return objective for the fixed income portion of the portfolio is to meet or exceed the increase in the Lehman Government / Corporate Intermediate Bond index over a market cycle of three to five years.

The Investment Manager is prohibited from investing in private placements, from speculating in fixed income or interest rate futures, and from arbitrage or any other

specialized investments.

Equity investments than can be considered for investment of the Fund's assets shall be limited to common stocks, preferred stocks, and American Depository Receipts (ADRs) traded on the New York, American, Regional Stock Exchanges, and the NASDAQ market, and pooled, common or institutional mutual funds, including international mutual funds.

Securities selected for investment shall represent industries, which are basic or highly important to the national economy. These industries shall have management with recognized ability, be strongly financed, conservatively capitalized and have demonstrated satisfactory records of earnings growth. Stocks will be selected for purchase or sale on the basis of estimates of intrinsic value, significant appreciation potential and limited exposure to risk. The equity portfolio shall maintain a risk level equivalent to that of the equity market as a whole.

Within the guidelines of security selection and quality, the Investment Manager shall have responsibility for security selection and diversification, subject to a maximum of five percent (5%) commitment of total market value of the assets allocated for an individual security. The Investment Manager will have discretion over asset turnover and allocation of equity holdings among selected securities and industry groups within the limits described above. Equity investments in ADRs shall be limited to five percent of the market value of the equity portion of the portfolio.

The goals and objectives of the fund are long term in nature. Consequently, short term variation in returns in considered normal and thereby acceptable. For purposes of performance appraisal, the investment horizon is defined as one full market cycle, normally three to five years. Performance should be measured on a time-weighted annualized basis with primary emphasis on results experienced over one, three, and five year periods.

The total return objective on the equity portion of the portfolio is to meet or exceed the return on the equity market over a normal market cycle of three to five years. The equity market is to be presented by a weighted index representing the Standard & Poor's 500 index (Large Cap), Russell 2000 index (Small Cap) and EAFE Index (International).

Investments in private placements, letter stock, short sales, margin transaction, or other specialized investment activities are prohibited. Investments in securities of foreign companies trated on foreign exchanges are prohibited, with the exception of international mutual funds without the specific consent of the Board of Directors.

Large Cap 30 % 55 %

Small / Mid-Cap 10 % 25 %

International 10 % 20 %

REITS 0 % 5 %

Fixed Income

U.S. Government 0 % 45 %

Agency 0 % 45 %

Corporate 0 % 45 %

Cash (Including money market accounts) 0 % 15 %

The Foundation presupposes an ideal asset mix of 65 percent equities, 35 percent fixed income. Some fluctuation may be normal and expected, however, if at closing, the overall asset mix shall exceed five percent above the specified ideal, the Investment Manager shall immediately divest the Foundation of assets in the over-weighted sector, and invest comparably in the other to attain balance.