Page 226 - Brook-Hollow Due Diligence Package

Exhibit One to Investment Policy Statement
Description of Investment Objective for Diversified Portfolio Investment

Time Horizon: Short - Less than 5 years (unless rollover option
exercised)

Risk Tolerance Score (1 – 5): 4 Moderate/Aggressive

Asset Allocation for a Moderate Portfolio

Lower Strategic Upper
Broad Asset Class / Peer Group Limit Target Limit

Cash 0.0 02.0 75.0
U. S. Fixed Income 0.0 19.0 75.0
Non-U. S. Fixed Income 0.0 9.0 75.0
Alternative Investments ** 0.0 0.0 100.0
U S Equities 0.0 42.0 75.0
International Equities 0.0 28.0 75.0

** Includes non-publicly traded promissory notes and/or subordinated notes issued by Brook
Hollow Capital LLC with an applicable interest rate of not less than 1.75% per annum.

Rebalancing of Strategic Allocation

The percentage allocation to each peer group may vary depending upon market conditions.
Please reference the allocation table above for the lower and upper limits for each peer group.
When necessary and/or available, cash inflows/outflows will be deployed in a manner consistent
with the strategic asset allocation and allocation ranges of the plan. Additionally, up to 5% of
assets may be invested in alternative investment. If there are no cash flows, the allocation of the
portfolio will be reviewed quarterly. If cash flows are insufficient to bring the portfolio within
the target allocation ranges, KACL shall decide whether to effect transactions to bring the
allocation of portfolio assets within the threshold ranges.

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