ENDOWMENT FUND OF THE
DEL MONTE FOREST FOUNDATION
POLICIES AND PROCEDURES

The Del Monte Forest Foundation (“Foundation”), through its Board of Directors (“Board”), hereby adopts the following policies and procedures for the acceptance, management and use of endowment funds contributed to, and accepted by, the Foundation. These policies and procedures shall be in addition to investment guidelines to be established as hereafter set forth. It is the mission of the Foundation to perpetuate and maintain the natural resources of the Del Monte Forest.

The purpose of the endowment assets received by the Foundation is to develop and fund the financial obligations and future needs of the Foundation in order to carry out and implement such mission.

Accordingly, all assets in the endowment fund shall be managed and used in accordance with these policies and procedures and the investment guidelines to be established unless a majority vote to the Board of the Foundation determines that it is in the best interest of the Foundation to vary from these policies and guidelines.

Any variance from these policies and procedures shall be duly noted in the minutes of the Board meeting at which the variance is approved and the reasons for the variance shall be stated in such minutes.

Subject to the foregoing, all endowment assets shall be accepted, managed and used as follows:

1. The Board shall designate an Endowment Committee (“Committee”) that shall consist of at least three current members of the Board. The Committee shall be responsible for the day-to-day management of assets in the manner set forth herein. Committee members shall serve a one-year term, and may be reappointed by the Board for no more than three consecutive terms. Committee members may be removed at any time by a majority vote of the Board. The Committee shall report to the Board on its activities at least quarterly, and shall report to the Foundation’s President as requested. The Committee shall maintain records of donations and transactions relating to those donations.
    

2. The Committee shall be empowered to retain an investment manager, legal counsel or accountant, if, in the discretion of the Committee, and with the prior approval of the Foundation’s President, such assistance is necessary and desired to properly implement these policies, procedures and investment guidelines. The costs of such professional assistance shall be borne by the Foundation as part of its regular operating expenses.
    

3. All assets managed by the Committee shall be segregated from, and managed independently from, the Foundation’s regular operating funds and accounts. The Committee may pool assets if, in the opinion of the Committee, such pooling is beneficial for investment purposes.
    

4. The Foundation will accept three types of giving: a permanent endowment, a named endowment and a Board designated endowment. The permanent endowment would consist of donations in which the principal is invested and the income earned from the donation would be used in a manner specified by the donor. Any income earned from the funds, which is not used during the calendar year, would be made a part of the permanent endowment and thereafter invested. A named endowment would consist of a donation that is used for a purpose specified by the donor (i.e., Education Endowment, Research Endowment, John and Mary Smith Acquisition Endowment). So long as funds remain in a named endowment, the Committee would invest it, and any unused income would be added at the end of the calendar year to the named endowment fund. The minimum donation for a named endowment is $250,000.00 and may consist of any combination of assets. The Committee shall adopt procedures so that reports on the use of the named endowment are periodically made to the donors of such endowments. Before any permanent endowment or named endowment is accepted, the Committee must agree that the endowment is consistent with a purpose agreeable to the Foundation, and is consistent with its obligation and mission. A Board designated endowment would consist of funds that are not restricted by the donor, and would be used for purposes designated by the Board in its sole discretion. In no event would any of the funds donated for endowment purposed be used for general operating obligations of the Foundation.
    

5. The Foundation would accept endowment contributions in the form of cash (either a lump sum payment or an amount paid over a period of time agreeable to the Committee), real property (either an immediate grant of a fee interest or a remainder interest with a life estate held by the donor), stocks and bonds (including mutual funds), or life insurance proceeds (as the designated beneficiary). The contribution could come as on outright gift, as a designation under a charitable remainder trust or a designation under a will, trust, annuity, or life insurance policy. The Committee reserves the right to reject any donation if, in the judgment of the Committee, the gift or the terms or form of the gift will not serve the best interest of the Foundation or its mission. Should the Committee determine that a gift or donation should be accepted, it shall report such decision to the Foundation’s President who shall have the option of presenting the issue to the Foundation’s Board for a final determination.

6. Assets donated to the Foundation in the form of an endowment fund shall be accepted according to the following principles:
    

   1. CASH: Cash contributions to endowments (except for named endowments) may be made at any level of giving. Cash endowments will be segregated in a manner so that, if required, the Foundation will establish that the funds were used for the specified purpose.
       

   2. REAL PROPERTY: Gifts of a fee interest in a real property estate will be accepted only after the Foundation has approved the title report relating to the property, has investigated marketability issues relating to the property (such as dimensions, locations, nature of improvements, tenant issues, if any, etc.) and the Foundation has received and approved an appropriate setting forth the disclosure of whether the property contains hazardous waste and toxins. It shall be the intent of the Foundation to sell any gifted real estate, unless in the judgment of the Committee it is more beneficial for the Foundation to retain ownership. The Committee may retain a property manager/real estate broker to assist in management and sale of the property, and the costs of such professional assistance shall be borne by the Foundation as part of its general operating expenses. Gifts of less than a fee interest in real estate will not be accepted unless the Committee and the Foundation’s Board approve such gifts.
       

   3. STOCKS AND BONDS: Gifts of publicly traded stocks and bonds (which would include mutual funds) will be accepted by the Foundation. The Foundation may accept gifts of other forms of securities (i.e., controlled stock) only with the approval of the Committee and the Foundation’s Board. Before any non-publicly traded security is accepted, the Committee shall fully apprise the Foundation’s Board of the risks of such acceptance. Such gifted stocks and bonds shall be held for investment of the Foundation to liquidate such securities for use in other types of investments. The Committee may retain a stockbroker to assist in the management and trade of the gifted stocks and bonds, with the expense of such assistance to be borne by the Foundation as part of its general operating expenses.
       

   4. LIFE INSURANCE: The Foundation may be named a beneficiary under a donor’s life insurance policy. Since the proceeds would come to the Foundation in the form of cash, this type of asset, when realized, would be accepted and managed under the same guidelines as those established for cash contributions.
       

7. All assets shall be managed and invested in low to moderate risk investments. The Committee shall establish guidelines for the management and investment of such assets, and the Foundation’s Board shall approve the investment guidelines. The Committee may amend the investment guidelines from time to time and the amendment shall become effective upon their approval by the Foundation’s Board. Members of the Committee shall be indemnified and held harmless by the Foundation to the fullest extent allowed by law so long as the members of the Committee act in good faith and in accordance with these policies and procedures.
    

8. The costs associated with the donation and acceptance of any donation shall be negotiated between the Committee and the donor. Should the Committee decide that certain of these costs should be borne by the Foundation, such decision must be approved by the Foundation’s President, and, if so approved, such costs shall be paid as part of the regular operating expenses of the Foundation.
    

9. The Committee may develop and present to the Board of the Foundation any materials or publicity concepts that the Committee feels should be adopted and implemented in order to generate donations to the endowment program. Before use, the Foundation’s Board must approve any such materials or publicity concepts. The costs of any adopted materials or publicity concepts shall be borne by the Foundation as part of its regular operating expenses.

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THE DEL MONTE FOREST FOUNDATION

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