International Association of Lions Clubs

Schedule D, Page 2, Part V, Line 4

“In the 22-23 fiscal year, the raleigh host lion's club (rhlc) received an endowment gift from rlcb, inc. (the raleigh lions clinic for the blind). Rlcb, inc. Was established in 1966 to provide employment opportunities for the visually impaired in wake county. This clinic was established solely by the raleigh host lions club, and it was set-up as an entirely separate business (non-profit) operation with a separate board of directors from rhlc. Rlcb, inc. Operated supply stores on military bases, call centers, and assembly plants employing varying numbers of visually impaired workers receiving u.s government contracts assigned to it from the national industries for the blind. After 50 years of successful operation, the changing business landscape gave evidence of a decrease of assigned contracts due to other non-profit entities entering the arena of set-aside work for government contracts. In 2019, rlcb was provided an unsolicited offer to sell its entire operations to lc industries of durham, nc. The offer of the sale of rlcb to lc industries was negotiated by the two entities with the sale completed in october of 2019 under the condition the rlcb visually impaired workers would be given an opportunity to work for lc industries in durham. As a part of the sale conditions, a two(2) year time-period was required by the asset purchase agreement for the clearing of all accounts receivable and accounts payable from the date of the sale, plus allowing for an agreed indemnification period. With all accounts cleared the final payment from lc industries to rlcb was completed as of march 21, 2022. The state of north carolina required procedural steps to be taken for dissolution of the rlcb non-profit corporation. All such procedural steps were completed by the end of 2022. The rlcb funds were accordingly transferred to the raleigh host lions club welfare fund in the spring of 2023. As a part of the conditions of rlcb funds conveyed were the following mandates: 100,000 of the amount transferred to the rhlc welfare fund to be made immediately available to cover pending obligations related to projects benefitting the visually impaired in wake county. All remaining conveyed funds to be placed in a sound investment account with only the earnings from the investment utilized by the raleigh host lions club welfare fund. The employed funds must be used for projects benefitting people who are blind or visually impaired or projects leading to the benefit of said people, which is the general mission of the raleigh host lion's club. The conveyed funds were generated by the efforts of the employees of rlcb, inc., who are blind or visually impaired, and the efforts of rlcb's board of directors. It is for these reasons the conveyed funds have been directly designated for these exclusive uses perpetually.”