INTERNAL 401K – Policy

Plan and Trust Name:

General Electronic Security Inc., 401K Plan

This Investment Policy Statement is adopted for the Plan by John Lindberg.

The Plan provides for individual accounts and permits participants (or beneficiaries) to exercise investment control over the assets in their accounts.

The Plan’s overall investment objective is to provide Plan participants (or beneficiaries) with a sufficient variety of investment options to enable participants to achieve their individual investment goals for retirement. To accomplish this, the Plan may enter into group annuity contracts or agreements with financial services providers that offer a wide variety of investment options and benefit distribution facilities.

The investment options should represent multiple asset classes covering equity (stock), fixed income (bond), money market, stable value, and balanced options. These investments will have the following general characteristics:

– Different risk/return characteristics

– Different investment objectives and styles

– Annualized returns over three-, five- and ten-year periods that have met or exceeded the competitive averages or established industry benchmarks

– Reasonable total expenses that are disclosed to participants

Since the principal purpose of the plan is to provide benefits at normal retirement age, the principal goal of the investment of the funds in the plan should be both security and long term stability with moderate growth commensurate with the anticipated retirement dates of participants.

Investments, other than “fixed dollar” investments should be sufficiently liquid to enable the plan, on short notice, to make
some distributions in the event of death or disability of a participant.

It is the intent to have investment options that represent a diversified mix of asset classes and styles, comprising approximately 13 choices. Included in the selections: active and passive index-like options, equity options across capitalization ranges ( small, mid and large capitalization) and style categories ( growth, blend and value) as well as international equity exposure (foreign or global). Income options will focus on credit quality ( investment grade, high yield) and maturity period (short, intermediate, long term).

The plan’s service provider should provide detailed account statements that regularly inform participants regarding investment performance and expenses that affect their individual account balances. The Plan intends to comply with ERISA Section 404(c) regulation. The choice of investment options and services provided to the Plan should facilitate compliance. In addition, to the extent provided in the Plan, participants may exercise any voting, tender or other rights connected with investments in their accounts.

This investment Policy Statement will be reviewed once a year to monitor the performance and characteristics of each investment option available under the Plan and to determine the continued appropriateness of the investment options available to participants. Factors that will be considered in this review include actual returns net of expenses, risk-adjusted performance, and any changes to risk and style characteristics or level of fees. Any investment fund that fails to meet its investment criteria for a period of 6 months may be removed as an option from the Plan and a substitute fund with similar characteristics may be added.

The investment Policy Statement is adopted on behalf of the Plan as of 1-1-2003.

John C. Lindberg – Plan Fiduciary