Terms and Conditions for Donations and Pledges

Exhibit A

Purpose of the Donation and Use of the Donation and the Net Earnings. 

The Donation is made exclusively for the Restricted Charitable Purposes.  The Donor acknowledges and agrees that the Net Earnings may be used for restricted purposes at the discretion of the board of directors of Penn State Rugby Foundation.

The Foundation shall be responsible for managing the Donation and the Net Earnings, if any, as assets of the Fund. The Foundation shall hold the Donation and the Net Earnings, if any, (i) outright and free of trust, (ii) separate and apart from the Foundation’s operating account and (iii) as part of the Fund.    

The Foundation shall be entitled to a non-refundable annual management fee in the amount of 1.5% of the fair market value of the Fund, which will be calculated and prepaid each year on July 1st. This fee will be used for the general operating expenses of the Foundation as approved by the Board of Directors.

The Donor acknowledges that the Foundation will appropriate and expend only the “income” derived from the Fund each year.  Such amount will be used annually in furtherance of the Restricted Charitable Purposes.  Notwithstanding any provision herein to the contrary, the Donor acknowledges that, upon the unanimous approval of the Foundation board of directors, the Foundation may, in any given year, appropriate and expend all or any part of the Fund for the Restricted Charitable Purposes.

Pursuant to this Agreement, the Foundation shall use the Donation and the Net Earnings, if any, to support The Penn State Rugby Foundation General Fund.  The purpose of The Penn State Rugby Foundation General Fund is to develop the sport of rugby as determined by the board of directors of Penn State Rugby Foundation, in its sole discretion.  In furtherance of such purpose, the Foundation shall conduct charitable rugby activities, including, but not limited to: (a) develop the sport of rugby by assisting rugby coaches throughout Pennsylvania with equipment and training costs for their teams, with preference to Penn State Rugby coaches, (b) develop the sport of rugby by awarding scholarships to students who attend any Pennsylvania college or university and who participate in the sport of rugby, with preference to Penn State Rugby participants, (c) post-career support (d) supporting, encouraging and developing the sport of rugby at the collegiate level through organizations such as Play Rugby USA and the United States Rugby Football Foundation; and (e) making distributions for charitable purposes.

Exhibit B

Default Events

Penn State University (the “University”) will cause, or be deemed to cause, an “Event of Default” (as referenced in in the pledge form), if (i) the University reduces its current funding of the rugby program, (ii) eliminates rugby as either a team or varsity sport program or (iii) the University prevents an off-campus organization from creating a rugby team that would compete at the collegiate level.