THREE HARBORS COUNCIL HAS A BOARD APPROVED SPENDING POLICY THAT AUTHORIZES THE COUNCIL TO BUDGET FOR AND MAKE ANNUAL DISBURSEMENTS FROM ITS ENDOWMENT FUNDS FOR OPERATING EXPENSES OR CAPITAL EXPENDITURES IN AN AMOUNT UP TO 5% OF A 20-QUARTER ROLLING AVERAGE OF THE MARKET VALUES OF THE TOTAL ASSETS IN THE ENDOWMENT FUND, IN COMPLIANCE WITH ANY APPLICABLE RESTRICTIONS.