MINUTES OF THE MEETING

OF THE BOARD OF TRUSTEES OF THE

CORRECTION CAPTAINS ASSOCIATION ANNUITY FUND
HELD ON AUGUST 8,2005
AT 233 BROAD'WAY, NEW YORl(. NEW YORK 10279

Trustees present: Peter Meringolo, George Aufiero, Charles Glover, Joyce

Brown and Ronald Whitfield and Patrick Ferraiuolo.

Present by invitation: Alben Seda, Legislative Chairman, Vincent f . O'Hara of

Holm & O'Hara LLP Steven Schiapp of Gould, Kobrick &
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Schlepp, P.C., Camille McMahon of Administrative

Servic es Only, lnc., Joseph Lizzio and Maria Keeler of
Morgan Stanley and Ken Singer and Amhony van DaaJen
of Wright Investors' Service.

The meeting was called to order by Captain Meringolo .

o The Truste es reviewed the Minutes of the Meetings held on July 14, 2005 and July 21,
2005,

A motion was made and seconded to accept the Minutes of the Meeting held on July 21, 2005 .

ADOPTED UNANIMOUSLY

o Joseph Lizzio reviewed tbe current status of the asset allocation and manager selection.
I-Ie also reviewed two handouts.

D Brett Schweizer of Sterling Capital Management LLP gave a telephone conference call
presentation for Mid/Small Cap Value Equity. Mr. Lizzio distributed a SterliogNYC
Corrections Captains Association August 8,2005 booklet. Currently, the firm manages over
$8 Billi on Dollars in assets. Although employee ownership still exists, BB&T, a regional bank,
has bough! an interest in Sterling. Sterling buys equities in compani es with a market cap of
between $1 to $10 Billion Dollars. Maria Keeler advised the Trus tees that Wright Investors '
Service ("WlS") had a minimum investment of $2 Million Dollars. The Trustees will only
allocate approximately $200,000.00.

A motion ",'as duly made and seconded by the Trustees who voted to retain Sterling Capital
Management LL-C with the allocation of 1%.

GOVERNMENT
EXHIBIT

GM-2
 ADOPTED UNANIMOUSLY

IJ Joseph Lizzio discussed the transfer of the money and managers to Morgan Stanley.
Morgan Stanley discovered that Winslow was not a registered investment advisor due to the
small number of accounts . Because Winslow was not registered with the SEC, Morgan Stanley
would not allow them [0 trade. Accordingly, Winslow was terminated and 01e money was
allocated to the retained money manager.

A motion was duly made and seconded by the Trustees who voted to authorize the termination
of Winslow and the transfer of the account to be liquidated and put in the asset aJ locations
already approved . Stacey Braun will be terminated and their securities will be transferred to the
investment advisors under the asset allocation.

ADOPTED UNANIMOUSLY

o Ken Singer and Anthony van Daalen distributed a Correction Captains' Association, Inc.
Annuiry Fund presentation on a broad core fixed income portfolio. Mr. van Daalen discussed
active management of fixed income through interest rate analysis, weighing different sectors and
individual security selection. Ken Singer reduced the fees and the minimum to $8,000 \.... ith $1.5
Million Dollars.

o After discussing Sage and Pacific, it was concluded that Sage would al so be retained.
The asset allocation for Sage wiII be 50% of the asset al location of the asset class.

A motion was made and seconded by the Trustees to retain Sage with the asset allocation of
50% of the asset class.

ADOPTED Ul':ANIMOUSLY

IJ Richard Imperiale of Forward Uniplan Advisor s ('TUA") reviewed a presentation, via

teleconference, on their REIT Portfolio. He discus sed Uniplan, the investment process,
philosophy and assets under management. Forward Management owns 20% of Uniplan and
markets /d istributes Uniplan, rUA owns REITs, i.e. real estate investment trusts and may own
part of real estate operating companies.

A motion was made and seconded by the Trustees to retain Uniplan.

ADOPTED UNANIMOUSLY

o Jose ph Lizzie discussed rhe Private Placement Memo and the risk of alternative
investments. He reviewed the Strategic Alternatives, which consi sts at five (5) investment
managers . He also discussed the Yale endowment. The Trustees discussed the risk versus return
with a cost of approximately 2%. The Trustees decided to continue with the investment.

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o The Trustees reviewed the DRO matters of Ferramosca, Ciaccio and Velez in which aJl
three DROs were approved as qualified.

A motion was made and seconded by the Trusrees who voted to qualify the Ferramosca,
Ciaccio and Velez DROs.

ADOPTED UNAN1MOUSLY

o George Aufiero discussed the Simms case and the Clark case for beneficiaries. With
regard to the Clark case, the Trustees reviewed the change of address with no listed beneficiary.
The Trustees decided that the previously named beneficiary should be paid.

A motion was made and seconded by the Trustees who voted to accept tbe previously named
beneficiaries for Clark 1l11d Simms.

ADOPTED UNANlMOlJSLY

o Joseph Lizzio discussed transferring the banking account from Bank of America to
Morgan Stanley, which bas a sweep account and checking.

A motion was made and seconded by the Trustees to switch the account from Bank of America
to Morgan Stanley as soon as administratively feasible.

ADOPTED UNANlMOUSLY

o Joseph Lizzio discussed WTS and Sage. He noted {hal' WlS had mortgage-backed
securities which is not comparable to Sage and its Index. WIS is more diverse and this
investment is not in the asset allocation . At the request of the Trustees, Joseph Lizzio will go
back and negotiate fees do vvn.

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 A motion was made lind seconded by the Trustees to retain WlS and Sage for the 25% asset
-,
allocation provided WIS agrees to reduce their fees.

ADOPTED UNANIMOUSLY

Dated: November 23, 2005

New York, New York

e'Brown

Patrick Ferraiuolo