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UNCLASSIFIED To: San Diego From: San Diego. Re: 205-SD-72665, 05/10/2011 $500,000 when Trust certified charitable (07/24/2004) $5 million at start of construction of the LNG plant. $1 million at start of commercial operations of LNg plant The operation of the Trust is controlled by two committees: the Technical Committee which controls the operations, and the Advisory Council which has input regarding the charitable gifts made from the Trust. Eligible projects are divided into two categories: Municipal, which pertain to the City of Ensenada (e.g. public security, academic, environmental), and Community, which are projects proposed by non-profit organizations with no ties to the City of Ensenada (e.g. hospitals, research, academic, promoting economic development). Any entity requesting money from the trust must prepare a letter to the Technical Committee. The letter includes a description of the project, a proposed budget, justification, a list of organizations, shareholders, partners and members involved, and at least two bids if the proposal is for a project. Beneficiaries of the Trust must have resided in Ensenada for a. minimum of five years, have no connection to any past or present' Ensenada official, and cannot be related to members of the Technical Committee. Additionally, The Trust Rules of Operation specifically state that the donation must conform to FCPA regulations. Donations cannot be used for payroll, can never be in the form of cash, and the Trust cannot be the employer of anyone associated with the project. The beneficiary cannot be a person, place of religious worship, agency or institution not legally constituted, or a political party or association. The Technical Committee is composed of the following five members: President - current Mayor of Ensenada. Treasurer:-- -employee .of the..Trustor..(Sempra's subsidiary Energia Costa Azul) Secretary - employee of the Trustor Member - Representative from the Advisory Council. Member - Citizen of Ensenada. The members of the Technical Committee are not compensated. Donations less than $50,ooo must be approved by a majority vote of the technical committee. Donations exceeding $5o,0oo can only be approved with a unanimous vote. Ensenada mayors are elected to a three year term, and are limited to one term. Over the past five years, three different Mayors have served as the President UNCLASSIFIED 2