«altname» It was RESOLVED that the minutes of the previous Trustees' meeting be confirmed and adopted.

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1 «altname» Minutes of Meeting of Trustees Held at «address1»«address2»«address3»«address4» On «Date» PRESENT: MINUTES: INVESTMENT & INSURANCE STRATEGY: «Present» It was RESOLVED that the minutes of the previous Trustees' meeting be confirmed and adopted. It was NOTED that new superannuation regulations require SMSF trustees to: regularly review the SMSF's investment strategy; consider whether the fund should hold a contract of insurance for members of the fund; and value fund assets at 'market value'. As such, the Chairman tabled an Investment & Insurance Strategy for the Fund in compliance with the new requirements. Discussion took place as to the appropriateness of the document, taking into account matters such as risks to members, likely returns, fund liabilities, diversification of assets and the MembersInsurance needs. It was acknowledged that the Compliance Investment & Insurance Strategy had been prepared to meet legislative and Compliance obligations and was not a substitute for investment advice. The Trustees resolved that any such advice would be sought through a licensed investment adviser as required. It was resolved that the document fully reflected the investment policy, objective and strategy that the Trustees believed appropriate for the Fund and that the Trustees should adopt this Compliance Investment & Insurance Strategy. CLOSURE: There being no further business, the Chairman declared the meeting closed. SIGNED AS A CORRECT RECORD: Trustee of the «altname» Trustee of the «altname»

2 «altname» COMPLIANCE INVESTMENT & INSURANCE STRATEGY PREAMBLE The Trustees recognise that all superannuation funds are required to have an investment strategy which complies with the covenants and investment standards under the Superannuation Industry (Supervision) Act 1993 (SIS). The Trustees covenant that, when contemplating investments of any kind, they will have regard to the sole purpose test contained in SIS legislation. This implies that the trustees accept their obligations of achieving maximum returns for members consistent with sound management of the fund s investments. The trustees accept that all investments shall be done on an arms length basis or on normal commercial terms. INVESTMENT OBJECTIVES The trustees of the above superannuation fund believe that the following general investment objectives should be considered: to provide superannuation benefits to the members of the fund to meet their retirement needs; to ensure that an appropriate mix of assets are owned by the fund by taking into account the age of the members; to achieve a rate of return greater than the CPI increases; to maintain a low level of capital volatility; to ensure that assets of the fund are liquid enough to meet expected cash flow requirements; and to ensure that the fund has adequate diversification in the holding of its investments, including within classes of assets. INVESTMENT STRATEGY To achieve the above investment objectives of the fund, the trustees have determined that the fund will consider investments in the following areas: equities and stocks including the participation in dividend reinvestment programs, rights issues and any other investments offered in this area; listed property trusts; unlisted property trusts; other managed investments including Notes and Debentures; and cash and any other interest bearing deposits, including Warrants DIVERSIFICATION The trustees acknowledge a reasonable tolerance for risk, but are not tolerant of a large variance in year to year returns.

3 The Trustees will monitor the Fund s investment strategy by imposing an asset allocation benchmark as follows:- Description % Authorised Range % Cash and Deposits % % - % Australian Fixed Interest Securities % % - % Direct and Indirect Property % % - % Australian Shares % % - % International Shares % % - % 0% MEASUREMENT OF FUND PERFORMANCE The trustees consider that a return of the CPI increase plus a further 3% when averaged over a five-year period is a good return on investment. In determining this strategy the trustees have considered all investment objectives, the fund s trust deed and any other relevant legislation. It is noted that the trustees should also seek appropriate professional advice when required. POLICIES The policies of the fund are: to continually monitor the performance of the fund s investments; to monitor the liquidity requirements of the fund; and to monitor the economic and market conditions. The trustees reserve the right to alter any of the above asset classes, percentages and returns on investment values as and when they see fit. INVESTMENT SELECTION The Trustees shall have absolute discretion in the selection of investments for the Fund provided that they are satisfied that such investments will generate the returns to achieve the benchmark required. To ensure that the investments selected are appropriate for the Fund s investment objectives, the Trustees may employ the services of licensed Investment Advisers to facilitate investment selection. RISK The Trustees acknowledge as part of their strategy that, while they will attempt to reduce portfolio risk by diversification and product selection, they accept the risk associated with each investment non diversifiable risk. Given that risks can change over time because of business and economic cycles, the investment strategy, as defined, is appropriate for an investment period of 3 years, although subject to review on an annual basis. EDIT ONLY FOR LRBA LRBA - Real property The trustees have considered borrowing through a limited recourse borrowing arrangement to fund the acquisition of real estate. The following matters were considered:

4 the risks involved in making, holding and realising the property under a limited recourse the likely return from the property under a limited recourse borrowing arrangement; the diversity of investments generally; the liquidity and cash flow consequences of holding the property under a limited recourse the time the members have until they retire; the fund s cash flow requirements; and the investment risk tolerance of the members. The Fund Trustee will borrow to acquire the beneficial interest in real estate. The lenders rights on any default of the borrowing or the sum of the borrowing and charges related to the borrowing are limited to rights relating to that real estate or any replacement to the real estate. LRBA - Listed securities The trustees have considered borrowing through a limited recourse borrowing arrangement to fund the acquisition of listed securities. The following matters were considered: the risks involved in making, holding and realising the listed securities under a limited recourse the likely return from the listed securities under a limited recourse borrowing arrangement; the diversity of investments generally; the liquidity and cash flow consequences of holding the listed securities under a limited recourse borrowing arrangement; the time the members have until they retire; the fund s cash flow requirements; and the investment risk tolerance of the members. The Fund Trustee will borrow to acquire the beneficial interest in listed company shares provided. The lenders rights on any default of the borrowing or the sum of the borrowing and charges related to the borrowing are limited to rights relating to those listed securities or any replacement to the listed securities. The trustees acknowledge that the Fund will not enter into any dividend reinvestment plan as this would breach the legislation relating to limited recourse borrowing arrangements. INSURANCE REQUIREMENTS The superannuation legislation allows funds to hold insurance cover in respect of fund members. To satisfy the superannuation legislation this cover must be limited to: life, terminal illness, total and permanent disablement (any occupation definition), and income protection cover. The aim of such insurance cover is generally to provide financial support to members (or their dependants) in the event of the member s death, injury or illness. Insurance may also be taken out over the life of a fund member as a means of addressing any potential liquidity concerns which may arise on the death of the member. There may be upfront tax benefits associated with holding such insurances via superannuation. However, depending upon the member s circumstances, any resulting benefit payments may be treated differently for tax purposes. Further, the personal circumstances of individual members will determine whether or not insurance cover is necessary, and whether it is appropriate to hold that cover via a superannuation fund. The Trustees consider that the holding of insurance cover is a decision to be made by members, based on their own personal circumstances. Accordingly, rather than providing automatic cover for fund members, the trustees will provide insurance cover at the request of individual members. It is expected that individual members will take into account their own personal circumstances before deciding whether or not to request cover from the Trustees.

5 The types of cover which will be provided will be limited to cover allowed by the superannuation legislation, including life, terminal illness, total and permanent disablement (any occupation definition) and income protection cover. Generally speaking, the cost of this cover would be deducted from the specific member s account in the fund and similarly any proceeds received would be credited to that member s account. The Trustees may also choose to take out a policy of insurance over the life of one or more members as a means of addressing any potential liquidity concerns which may arise on the death of a member. In this case, the cost of this cover would be borne by the fund as a whole (i.e. premiums would not be deducted from the insured member s account) and any proceeds received would be credited to a reserve account rather than a member account. The Trustees will notify members should they decide to take out cover of this nature Trustee Trustee «date»