Section1FORMATIONOFTHEINVESTMENTCOMMITTEE.docVIP

Section 1: FORMATION OF THE INVESTMENT COMMITTEE 1.1. Functions of the Committee The Investment Committee (Committee) shall be the investment fiduciary responsible for the prudent management of the Investment Portfolio (Portfolio). The Committee will comply with all applicable fiduciary, prudence, and due diligence requirements experienced investment professionals would utilize; and with all applicable laws, rules, and regulations from various local, state, federal, and international political entities that may impact the Portfolio. The Committee shall have the exclusive authority to establish, execute and interpret an investment policy statement for the Portfolio. The Committee shall be solely responsible for the selection and retention of professional advisors to the Portfolio, which may include, but not be limited to, investment managers, investment consultants, custodians, attorneys, accountants, and clerical staff. 1.2. Definition of a Fiduciary A fiduciary is defined as a person who has the legal and/or implied moral responsibility to manage the assets of another person. A fiduciary must act solely in the best interests of that person. The Committee is subject to certain duties and responsibilities, including, but not limited to: Know the standards, laws, and trust provisions that impact the investment process of the Portfolio Prudently diversify the Portfolio to a specific risk/return profile (Or in the case of a participant-directed retirement plan, to make sufficient asset classes available so that a participant can prudently diversify his or her portfolio) Prepare, execute, and maintain an investment policy statement Have investment decisions made by prudent experts Control and account for all investment-related expenses Monitor the activities of all investment-related service vendors Avoid conflicts of interest and prohibited transactions 1.3. Establishment of Committee The Committee shall consist of such number of indi