Lankenau Institute for Medical Research

“Certain officers and/or trustees may hold financial interests as investors/advisors in unrelated companies and/or companies which are also invested in by the Lankenau Institute for Medical Research and/or its wholly-owned taxable subsidiaries. Part VI, Section A, Lines 6, 7a and 7b AS PER THE ARTICLES OF INCORPORATION, THE SOLE MEMBER OF LANKENAU INSTITUTE FOR MEDICAL RESEARCH IS MAIN LINE HOSPITALS, INC., A PA NONPROFIT CORPORATION. AS SOLE MEMBER, MAIN LINE HOSPITALS, INC. HOLDS CERTAIN POWERS OF ELECTION IN CONNECTION WITH THE GOVERNING BODY OF LANKENAU INSTITUTE FOR MEDICAL RESEARCH. THESE POWERS ARE PRESENTED IN DETAIL IN THE GOVERNING DOCUMENTS of the Company and the Foundation, WHICH THE COMPANY MAKES AVAILABLE TO THE PUBLIC UPON REQUEST.”

“The form 990 is prepared in conjunction with pricewaterhousecoopers llp and reviewed internally by management. It is then sent to the board of trustees for their review. The form 990 is reviewed at a meeting of the board of trustees prior to filing.”

“Annual conflicts of interest statements are required to be completed by all trustees, officers, directors, key employees and other interested persons. Any conflict arising are referred to the legal department for resolution. If deemed necessary or advisable, cases may be referred to the full board for resolution.”

“THE PROCESS FOR DETERMINING COMPENSATION OF THE PRESIDENT OF LANKENAU INSTITUTE FOR MEDICAL RESEARCH IS AS FOLLOWS: MARKET SURVEY DATA FOR COMPARABLE POSITIONS WAS PROVIDED TO THE LIMR BOARD FOR REVIEW AND DISCUSSION TO PROVIDE GUIDANCE TO FORMULATE THE COMPENSATION along with THE COMPENSATION RECOMMENDATIONS of THE Main Line Health HUMAN RESOURCES AND COMPENSATION COMMITTEE OF THE MAIN LINE HEALTH BOARD. THE PROCESS FOR DETERMINING COMPENSATION FOR persons employed by affiliated entities and serving on LIMR's BOARD IS AS FOLLOWS: Using the services of an independent consulting firm, Main Line Health System (formerly Jefferson Health System), utilized no fewer than three executive compensation surveys in determining the compensation of the Main Line Health CEO. Main Line Health System (formerly Jefferson Health System) used market data representing functionally comparable jobs within similarly situated organizations in making these compensation determinations. After the review and deliberation of the executive committee of the board, which has the responsibilities of a compensation committee, compensation recommendations were reviewed and approved by the full board. FURTHER, THE HUMAN RESOURCES & COMPENSATION COMMITTEE OF THE MAIN LINE HEALTH BOARD, USING THE SERVICES OF AN INDEPENDENT EXECUTIVE COMPENSATION CONSULTING FIRM, IS RESPONSIBLE FOR EVALUATING AND DETERMINING THE TOTAL SENIOR EXECUTIVE BENEFITS AND COMPENSATION FOR THE EVP & CHIEF FINANCIAL OFFICER, HOSPITAL PRESIDENTS AND OTHER SENIOR EXECUTIVES USING BOTH NATIONAL AND REGIONAL HEALTHCARE DELIVERY MARKET COMPARABLE COMPENSATION DATA. AFTER REVIEW AND DELIBERATION, THE COMMITTEE DOCUMENTS ITS COMPENSATION DECISIONS AND REPORTS TO THE FULL Main Line Health BOARD OF GOVERNORS WHO REVIEW AND APPROVE THE COMPENSATION DECISIONS.”

“Written policies are in place within the organization and participation was evaluated and approved internally, as required, to safeguard the organization's exempt status. Part vi, section c, line 19 the organization makes its governing documents, conflict of interest policy, and financial statements available upon request.”

“The officers devote their time to all of the organizations within main line health, inc. As such, the total hours worked by the officers, across all of the organizations, cumulatively represent their full-time employment status.”

“THE LANKENAU INSTITUTE FOR MEDICAL RESEARCH ("LIMR" or the "Company") IS AN INDEPENDENT NOT-FOR-PROFIT CORPORATION ENGAGED IN BIO-MEDICAL RESEARCH TO BETTER UNDERSTAND, PREVENT AND CURE DISEASES. LIMR IS AFFILIATED WITH MAIN LINE HOSPITALS, INC. ("HOSPITALS"), ONE OF WHOSE DIVISIONS IS THE LANKENAU MEDICAL CENTER. THE HOSPITALS ARE A CONTROLLED ENTITY OF MAIN LINE HEALTH, INC. ("MLH"). LIMR RECEIVES SUPPORT FROM GOVERNMENT GRANTS, NATIONAL HEALTHCARE ASSOCIATIONS, ENDOWMENT INCOME, AND GRANTS FROM INDIVIDUALS, CORPORATIONS, FOUNDATIONS INCLUDING THE Lankenau Medical Center Foundation ("FOUNDATION"), MAIN LINE HEALTH, INC., AND OTHER SOURCES THAT SUPPORT MEDICAL RESEARCH. LIMR Chemical Genomics Center, Inc. ("LCGC"), a wholly-owned taxable subsidiary of Lankenau Institute for Medical Research ("LIMR"), was reorganized as a non-profit organization in the fiscal year presented, and effective 6/30/14 at 11:59 P.M., LCGC was legally merged into LIMR.”

“OTHER CHANGES IN NET ASSETS INCLUDE THE FOLLOWING: Transfer from Main Line Health, Inc. $ 5,550,000 Increase in Assets in Perpetuity $ 125,032 Donated equipment $ 4,864 Loss on equipment trade ($ 949) Miscellaneous ($ 48) ------------- $ 5,678,899 =============”