The procedures set forth below are designed to facilitate the direct investments of the Liatis Foundation. They specify the investment perimeters which will be followed by the directors and the procedures to be utilized to inform the Liatis Board of directors (the "Board") of the actions taken on Liatis's behalf. Liatis will invest in a variety of securities, equities, and other assets to accomplish the objective of providing sufficient liquidity, credit quality, and return on investment to meet the qualified need based on IRS rules that regulate foundations of this type.
This policy is designed to provide the discretion and flexibility to enable Liatis to meet the above objectives. The Board will apply sound judgment and professional integrity in the pursuit of their duties. Investments in cash equivalents and fixed income securities will be made in order to provide adequate levels of cash flow and liquidity. Below investment grade securities, common and preferred stocks, real estate and other investment opportunities will also be considered for Liatis investment portfolio for the purpose of maximizing portfolio yields, while maintaining acceptable risks. Liatis is a private foundation formed under the laws of the State of Texas. Liatis is a nontaxable entity.