25L - ESTABLISH NON ENDOWED FUND

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as the income of CVOC, for both tax purposes and for purposes of CVOC's fmancial statements. It is the intent of the parties that this Agreement be interpreted to provide CVOC with variance powers necessary to enable CVOC to treat the restricted fund as CVOC's assets in accordance with Interpretation No. 42 of Statement No. 116 issued by the Financial Accounting Standards Board, while this Agreement is in effect. 3. Program Activities and Sponsorship Policies. CVOC shall hold, manage, invest and reinvest the Fund, shall collect the income and shall pay and disburse the net income and principal for public educational and charitable uses and purposes. All community programs, public information work, fundraising events, processing and acknowledgment of cash and non-cash revenue items, accounts payable and receivable, negotiation of leases and contracts, disbursement of Program funds (including grants), and other activities related to the Program, shall be the ultimate responsibility of CVOC and shall be conducted in the name of CVOC, beginning on the Effective Date. Unless otherwise agreed, and subject to their consent, all personnel to be compensated for working on the Program shall become at-will employees of CVOC on the Effective Date, and shall be subject to the same personnel policies and benefits as are required by law to apply to all employees of CVOc. Unless otherwise agreed, any tangible or intangible property, including intellectual property, such as copyrights, obtained or created in connection with the Program shall be the property of CVOC while this Agreement is in effect. CVOC shall grant to City a royalty- free, nonexclusive, irrevocable license throughout the world for governmental purposes to disclose, publish, translate, reproduce and use any and all such tangible, intangible and/or intellectual property. Authority to manage the activities of the Program is delegated to the City, subject at all times to the ultimate direction and control of the CVOC Board of Directors. The City shall abide by the Sponsorship Policies of CVOC as set forth on the attached Exhibit I, which may be amended from time to time with the consent of the City, and which include administration fees, as set forth in attached Exhibit 2, to be paid to the general fund of CVOC from the restricted fund described in Paragraphs 2, and 4 herein. 4. Restricted Fund Management / Performance of Charitable Purposes: All of the assets received by CVOC under the terms of this Agreement shall be devoted to the purposes of the Program, within the tax-exempt purposes of CVOc. No item of revenue shall be earmarked to be used in any attempt to influence legislation within the meaning of IRC Section 501 (c) (3); no agreement, oral or written, to that effect shall be made between CVOC and any revenue source. CVOC shall not use any portion of the assets to participate or intervene in any political campaign on behalf of or in opposition to any candidate for public office, to induce or encourage violations of law or public policy, to cause any private inurement or improper private benefit to occur, nor to take any other action inconsistent with IRC Section 501 (c) (3). S. Reporting. CVOC will provide reports to the City quarterly. As part of its regularly scheduled distribution of statements, CVOC will provide the City with a global annual audit and detailed reports insofar as they relate to the money or property transferred to CVOC and distributed by CVOC on behalf of the City. Any separate audit of the Fund and Program will be at the City's cost and expense. 6. Advisory Committee. The Executive Director of Santa Ana's Park's Recreation and Community Services Agency will advise CVOC on the distribution for City parks related projects. If no advisors are able and willing to act, CVOC shall make decisions without advisors. As required by CVOC Fiscal Sponsorship Agreement 25L-4 2