United Cancer Council, Inc. - Page 48

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               Pursuant to the Escrow Agreement, WIB opened a bank account            
          (hereinafter sometimes referred to as the Escrow Account) in which          
          to maintain the escrow fund.  Only authorized employees of WIB              
          could withdraw funds from the Escrow Account.  The money deposited          
          into the Escrow Account came primarily from the following sources:          
          (1) The money W&H advanced to pay for petitioner’s fundraising              
          expenses and operational expenses, and (2) the contributions made           
          by the general public in response to the fundraising letters                
          mailed under the Contract.  All of the revenues from petitioner’s           
          direct mail campaign, not merely the profits from the mailings,             
          went into the Escrow Account.                                               
          C. Petitioner’s “Draw” Arrangement                                          
               As indicated above, during its discussions with petitioner             
          about entering a possible fundraising contract, W&H offered to              
          provide funds with which petitioner could continue to operate.              
          W&H furnished such funds to petitioner after the Contract was               
          executed.                                                                   
               A December 17, 1984, letter agreement between petitioner and           
          W&H provides, in pertinent part, as follows:                                
                    In order to meet your cash flow needs for administration          
               and program, you [petitioner] plan to transfer funds from the          
               escrow account that were generated from * * *  [prospect               
               letter mailings].  To date $5,000 was transferred on November          
               1, $5,000 was transferred on December 1, and you plan to               
               transfer another $5,000 on January 1, 1985.                            
                    This letter acknowledges the fact that these transfers *          
               * *  are made in such a manner from  * * *  [prospect letter           
               mailing] revenues will be replenished from UCC’s income from           
               * * *  [housefile letter] mailings within six months of                




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Last modified: May 25, 2011