Src Inc.

“Business Relationships between Officers, Directors, Trustees and Key Employees M. Catherine Richardson, Chairperson of SRC, Inc.s Board of Trustees is a current member of the Regional Advisory Board at MT Bank. One member of SRC s Board of Trustees, Allen J. Naples is the Regional President of MT Bank.”

“Business Relationships between Officers, Directors, Trustees and Key Employees Allen Naples, Trustee of SRC, Inc.s Board of Trustees and Paul Tremont, President CEO of SRC, Inc. are current member of the Metropolitian Development Association of Syracuse and Centeral New York, Inc. Centerstate Corporation for Economic Opportunity Centerstate CEO Foundation, Inc. and Centerstate Development Foundation.”

“Business Relationships between Officers, Directors, Trustees and Key Employees Thomas Triscari, Vice Chairperson of SRC, Inc.s Board of Trustees and Paul Tremont, President CEO of SRC, Inc. are current members of the SRC Ventures, Inc. Board of Directors.”

“Process used to review Form 990 The Form 990 of SRC, Inc. is prepared by the Finance staff and provided to senior management for review prior to filing. The Form 990 is also reviewed by the Audit Committee of SRC, Inc.s Board of Trustees and a copy is provided to all members of SRC, Inc.s Board of Trustees prior to filing. All questions and comments by senior management and the Board of Trustees were addressed prior to filing. In addition a training session on the Redesigned Form 990 was conducted by PricewaterhouseCoopers, LLP for the benefit of senior management and the Audit Committee of the Board of Trustees.”

“Written Conflict of Interest Policy Conflict of Interest disclosure statements are completed annually by all members of the Board of Trustees, Officers, and Key employees of SRC, Inc. Once the disclosure statements have been collected, the statements are reviewed by members of the legal office. All reported potential conflicts of interest are evaluated and discussed among the parties. Board of Trustee members, Officers, and Key employees are required to disclose a conflict of interest and recuses themselves from voting on or otherwise discharging their duties with respect to any matter involving the conflict which comes before the Board or prior to entering into any contract or transaction involving the conflict.”

“Process for Determining Compensation The Compensation for all Officers of SRC, Inc. is recommended by the Personnel and Compensation Committee of the Board and approved by the Board of Trustees. The Personnel and Compensation Committee members are all outside Board of Trustee members. Annually Human Resources is responsible for providing to the Personnel and Compensation Committee and the Board of Trustees a compensation study which is conducted by an independent third party. The compensation study that is obtained from the independent compensation consultant provides a reasonableness opinion, advice on the current officers compensation and a comparability study used to aid in determining the Key employees salaries.”

“Joint Venture Policy SRC, Inc. has adopted a written policy requiring the organization to evaluate all potential participation in joint venture arrangements under applicable federal tax law and has procedures in place to safeguard the organizations exempt status with respect to potential arrangements. SRC, Inc. did not invest in, contribute assets to or participate in a joint venture or similar arrangement with any entity during the current year.”

“Public Inspection of Form 990 and Governing Documents SRC, Inc. makes its Form 1023 and Form 990 available for public inspection upon request. SRC, Inc.s governing documents, conflict of interest policy and audited financial statements are not routinely made available to the general public.”

“Reconciliation of Net Assets - Other Changes in net assets or fund balances Decrease in Postretirement benefits adjustment 405,253.”