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2.10.a

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Reliant Owned Creative Works: Produced Within the Scope of Employment

2.10.a.1 Employee Activities

In general, GCM Reliant employees are employed to conduct the following types of activities in assigned local churches and/or ministries:

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As part of their normal duties, GCM Reliant employees may produce certain types of Creative Works which may include, but are not limited to:

• • sermons, teachings, lectures, or other oral presentations
  • songs, music or musical productions, dramatic shows and presentations, seminars, workshops, or other live event presentations
  • notes or study materials to be used in conjunction with such presentations
  • books, newsletters, magazines, Bible or book studies, and other types of literary works
  • audio and/or video recordings and productions, still images or photographic presentations, live event staging, lighting, sound and multimedia production, and other recorded or produced materials
  • computer and/or electronic hardware, software or digital media

2.10.a.3 For

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Reliant Works

When the CW is produced by an employee within the scope of his or her employment, GCM Reliant legally owns the copyrights and all other legal rights and interests in the CW. This is legal standard under U.S. copyright law that GCM Reliant must adhere to as an employer. Such GCM Reliant Works would include:

• • Works created in the normal course of an individual's employment with GCMReliant
  • Works created with the assistance of GCM Reliant staff, facilities, or other ministry resources
  • Works created primarily for use in the ministry of GCMReliant

GCM Reliant Works developed or prepared by employees within the scope of their normal employment will be considered a "work made for hire" under United States copyright law (17U.S.C. §101 et seq.) and legally will be considered the property of GCMReliant₁

2.10.a.4

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Reliant's rights

Include, but are not limited to the following standard rights to:

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…the CW for (an in) all media now known or later developed.

The GCM Reliant Executive Director, or his designated representative, will be the contact for all permission and licensing requests, and legally is required to oversee the dissemination of all GCM Reliant Works, and establish procedures to protect all published and unpublished Works from unauthorized use or distribution.

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2.10.b.1 Independent Works

A GCM Reliant employee is entitled to own the copyright of an Independent Work (even if such materials have a spiritual or Christian nature). They just need to meet the following requirements:

• Independent Work has been presented in advance and approved in concept by the GCM Reliant Executive Director or his designated representative.
• Independent Work is created on the employee's personal time, with no support or resources, financial or otherwise, from GCMReliant.
• Independent Work is not created or developed for a specific GCM Reliant job assignment, is not based on a GCM Reliant job assignment, or is not otherwise created or developed specifically for the GCM Reliant ministry in any way.
• Independent Work is not advertised or promoted using GCM Reliant resources during the term of the GCM Reliant employee's employment.
• Independent Work does not reference the employee as an employee of GCM Reliant (unless previously approved by the GCM Reliant Executive Director or his designated representative).
• Examples of uses of GCM Reliant support or resources include, but are not limited to: the use of GCM Reliant facilities, funds, work-time, equipment, or supplies
• The use of "on-the-job" time, personnel, or GCM Reliant staff,
• Any use of GCM Reliant funds, property, or underlying materials

The employee will be considered to have not relied upon GCM Reliant resources if the Independent Work is created, edited, developed and published solely on the employee's personal time (after hours, during vacation, or during approved unpaid leave), and using only their resources, without the assistance of any GCM Reliant staff, facilities, or other GCM Reliant resources.

2.10.c Ownership of Derivative Works

GCM Reliant recognizes that new works created from existing GCMReliant-owned Works (known as "Derivative Works",), may be beneficial to GCM Reliant and its mission. GCM Reliant also recognizes that there may be cases where its resources may not be best utilized in the creation or production of such Derivative Works. Even in that instance, however, GCM Reliant might still desire such a Derivative Work to be available to the public.

An example of a Derivative Work would be the development of a new book (Independent Work) from underlying sermons or sermon materials that were legally owned by GCM Reliant because they were produced in the course of normal employment. Essentially, Derivative Works are combinations of GCM Reliant Works and Independent Works.

For anyone interested in creating a Derivative Work, GCM Reliant will follow these requirements:

• If an employee wants to create a Derivative Work derived from an existing GCMReliant-owned Work (for his or her personal benefit and not as part of his or her GCM Reliant job responsibilities), the GCM Reliant employee needs to simply request permission and negotiate ownership rights with the GCM Reliant Executive Director, or his designated representative. This needs to be done before creating a Derivative Work.
• If GCM Reliant agrees that such a Derivative Work should be created for GCMReliant, it may decide to assign a GCM Reliant employee to create the Derivative Work. In that case, the Derivative Work created will be deemed a "work made for hire" and GCM Reliant will need to legally own the copyright in the Work.
• If GCM Reliant determines it does not want to create such a Derivative Work, but would still like to see that Derivative Work created and distributed for the public, it may negotiate with the GCM Reliant employee to provide a license to that employee to create such Derivative Work.
• Ownership rights, credits, royalty interests, and all incidents of copyright ownership, as well as licensing rights for GCMReliant, will then be determined on a case-by-case basis by the GCM Reliant Executive Director, or his designated representative, in consultation with legal counsel.

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Given the nature of the employment responsibilities of GCM Reliant employees, it is expected that employees may routinely create GCM Reliant Works in the scope of their normal employment. Employees need to contact the GCM Reliant Executive Director, or his designated representative, for guidance in determining the ownership rights with respect to the CW that they are contemplating creating. This advance contact will help to determine if the Work will be classified as an Independent Work, GCM Reliant Work, or a Derivative Work. It is GCMReliant's desire to ensure that there is clarity with respect to the ownership rights of such CW and that requirements of any reasonable compensation have been met, if applicable.

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Written Notification
Employees are required to notify the GCM Reliant Executive Director in writing, or his designated representative, in the following situations:

• • If the employee desires to create an Independent Work - CW that he or she believes would belong to the individual and not to GCM Reliant (because it would not be developed within the scope of their GCM Reliant employment)
  • If the employee desires to develop a GCM Reliant Work (within the scope of his or her employment) that the employee believes has or may have value for distribution outside of the employee's local church or ministry setting (such as a book or worship recording)
  • If the employee desires to create a Derivative Work from an existing GCM Reliant Work.

2.10.d.2 Approval by the Executive Director

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• • Independent Works - approval of the Work in concept and a confirmed understanding the entire CW will be created and developed on the employee's personal time.
  • GCM Reliant Works - to be developed and distributed outside the employee's local church or ministry-approval of the Work and the right to review the content to insure that it is not contradictory to the GCM Reliant Statement of Faith.
  • Derivative Works - permission to create the CW, approval of the CW, negotiated ownership rights.

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• Independent Works - All royalties and income obtained from the CW belong solely to the employee.
• GCM Reliant Works - All royalties and income obtained from a GCM Reliant Work legally belong to GCMReliant.
• Derivative Works - Unless negotiated otherwise with the Executive Director, all royalties and income obtained from a Derivative Work that was derived from an existing GCM Reliant work legally belongs to GCMReliant.

2.10.h Treatment of Royalties and Income Received by

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Reliant

2.10.h.1

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Reliant Royalty Income/MTD Account

Any royalty income belonging to and received by GCMReliant, that is directly related to CW developed by a field missionary, will be directed as incometo the applicable GCM Reliant MTD account for which that field missionary is responsible (less any administrative assessments or other financial considerations and overhead as noted in any negotiated CW agreement).

If the field missionary leaves GCM Reliant employment and there is no subsequent transfer** of CW ownership or right to use the CW, GCM Reliant has the option to re-direct the royalty income to another GCM Reliant ministry fund.
(**If the field missionary leaves GCM Reliant employment and there will be a subsequent transfer of CW ownership or right to use the CW, please refer to the Treatment of Creative Works if Employee Leaves GCMReliant section below).

2.10.i Treatment of Production Expenses for Creative Works

• Independent Works - All expenses related to producing CW obtained from an Independent Work are the sole responsibility of the employee and must be paid by the employee.
• GCM Reliant Works - Unless negotiated otherwise with the Executive Director, all expenses related to producing, publishing, distributing CW that is a GCM Reliant Work developed by a field missionary, will need to be paid from the applicable GCM Reliant MTD account for which that field missionary is responsible.
• Derivative Works - Unless negotiated otherwise with the Executive Director, all expenses related to producing, publishing, distributing CW that is a Derivative Work developed by a field missionary, will need to be paid from the applicable GCM Reliant MTD account for which that field staff missionary is responsible. (Here it is assumed that the Derivative Work was derived from an existing GCM Reliant work and belongs legally to GCMReliant).

2.10.j Treatment of Creative Work if Employee Leaves

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Reliant

If the employee leaves GCM Reliant employment, GCM Reliant may use one of several options (but is not limited to) for the treatment of any CW produced by the employee (that legally would be classified as a GCM Reliant Work), including the following:

1. One option is that GCM Reliant will donate the CW to another 501(c)(3) ministry that is in harmony with GCMReliant's tax-exempt purposes, subject to Board approval.

2. A second option - because GCM Reliant eagerly desires to support the local church where the employee had been ministering, GCMReliant, in most cases will permit the church the right to use** (but not ownership) the CW to the employee's local church where they are ministering. The local church may then use the CW and also receive any royalty income generated from the CW. If the former GCM Reliant employee later desires to secure personal ownership of the CW from his local church, the employee would need to negotiate an agreement directly with GCM Reliant for the transfer of that ownership from GCM Reliant to the employee.

**Right to use: The reason GCM Reliant retains the ownership rights to the CW is in order to preclude local churches from simply giving the CW to the former employee as a direct pass through (which GCM Reliant is not permitted to do as a tax-exempt organization). The reason GCM Reliant retains the ownership rights to the CW is in order to preclude local churches from simply giving the CW to the former employee as a direct pass through (which GCM Reliant is not permitted to do as a tax-exempt organization).

3. A third option would be for GCM Reliant to agree with the employee, to transfer the ownership rights to the employee who is leaving their employment with GCM Reliant (if that employee desires personal ownership of the CW). GCM Reliant is required by tax-exempt laws to first consider whether it is in keeping with its tax-exempt purposes to make such a transfer. After that decision is made by GCMReliant, the process would require the following steps (these are again required by tax-exempt laws under which GCM Reliant is constrained):

GCM Reliant will obtain a fair market value of the CW for the rights to be transferred to the employee. This is known as the "CW FMV" or "Purchase Price". GCM Reliant is required by law to assign its CW rights in exchange for receiving "fair market value".

After obtaining a fair market value of the rights for the CW, this now becomes the "Purchase Price". GCM Reliant will work with the employee/purchaser to arrange one of the following payment options for the assignment of the CW rights to the employee:

a. No cash payment. In this case, GCM Reliant adds the amount of the Purchase Price to the employee's compensation as additional compensation. GCM Reliant will then list the total compensation on the employee's GCM Reliant W-2.

b. Cash payment. In this case, the employee pays GCM Reliant the Purchase Price in a one-time cash payment.

Under either payment scenario above, the employee is responsible for all personal income and any other taxes due as a result of the purchase of the CW from GCMReliant.

4. If during their ongoing GCM Reliant employment, the employee desires to personally own any CW he or she produced while still working for GCM Reliant (and GCM Reliant agrees), they could do so under the same options listed in section 3(a) and 3(b) above.

If the employee has already left GCM Reliant employment, the only payment option available to him or her is the cash payment - 3(b).

Expenses Incurred: For Sections 3 and 4 above, GCM Reliant will obtain a fair market value of the CW in consultation with legal counsel. Unless negotiated otherwise with the Executive Director, all expenses incurred related to valuing the CW, will need to be paid from the applicable GCM Reliant MTD account for which that field missionary is responsible.₇

2.10.k Employee Responsibility for Taxes for Independent Works

GCM Reliant employees are personally responsible for all tax obligations relating to income generated from their Independent Works. Employees are also responsible to ensure that no GCM Reliant resources, including work time, personnel assistance or GCM Reliant facilities or equipment, are used for the production of materials produced outside the scope of their employment with GCMReliant. If, inadvertently, an employee utilizes any GCM Reliant funds or resources in the production of Independent Works, the employee needs to reimburse GCM Reliant in full for the total costs incurred, and/or costs associated with the services and equipment used. If no reimbursement is made to GCMReliant, such costs may be considered taxable to the employee. In such instances, there may possibly be significant tax consequences to the employee for which he or she shall be responsible.

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2.10.m Legal Items - Copyright Notice, Registration, and Agreements

All copyrightable GCM Reliant Works produced and/or prepared by GCM Reliant employees, independent contractors, and volunteers within the scope of their employment or their contractual or other duties are required to contain proper copyright notices indicating that GCM Reliant is the legal owner of the copyright. In instances where GCM Reliant determines that the copyright of the Derivative Work can be owned by a GCM Reliant employee (who is creating the Derivative Work outside the scope of his or her employment duties), the GCM Reliant employee is required to specifically indicate the copyright notice of the Derivative Work and all copyright registrations, that the Derivative Works relies on underlying material that is owned by GCMReliant. From time to time, GCM Reliant may need to have its employees sign forms to assist GCM Reliant in registering its copyrights in the GCM Reliant Works or Derivative Works, and also may be required to assist GCM Reliant in establishing its copyright ownership. All employees agree that GCM Reliant can obtain full disclosure in writing of any and all GCM Reliant Works created by the employee at any time during the course of employment. GCM Reliant may request from its employees, any agreements it needs to implement this CW Policy, but the absence of such agreements does not affect GCMReliant's rights under this policy.

_{1 GCM Reliant Work(s) developed or prepared by independent contractors or volunteers at GCMReliant's request will be considered "works made for hire" under specific guidelines set forth under United States copyright law (17 U.S.C §101 et seq.) and cases, and/or assigned to GCM Reliant by contract or written agreement.}