Stowers Resource Management Inc.

“The board has delegated certain authority to an executive committee which may exercise delegated powers and authority of the board in the management of the business and affairs of srm. The members of the executive committee all serve on the board.”

“James e. Stowers jr., virginia g. Stowers, and james e. Stowers iii, directors of srm, have a family relationship. Clifford w. Illig, william b. Neaves, david m. Chao, richard w. Brown, and roderick l. Sturgeon, all directors of srm, have a business relationship; they serve on the board of biomed valley discoveries, inc. Richard w. Brown, david a. Welte, william b. Neaves, roderick l. Sturgeon, james e. Stowers jr. And david chao have a business relationship; they serve on the board of american century companies, inc. ("acci") as described in response to schedule l, part iv.”

“Simr is srm's sole member and elects srm's board of directors.”

“The data and information necessary to prepare srm's form 990 is compiled by the accounting department and reviewed by our tax attorney at bryan cave, llp. Pwc, our external tax preparers, use this information to prepare the form 990. The completed form 990, including required schedules, is reviewed by the officers of srm before it is filed with the irs. After the preparation and review process detailed above, the form 990, including required schedules, is provided to each voting member of srm's board before it is filed with the irs.”

“Srm has adopted a "conflicts of interest and director independence policy". Each director, officer, and other person who is in a position to exercise substantial influence over decisions of srm are required to annually complete and sign a disclosure statement. A covered person must disclose the existence of a potential conflict and all material facts to the governing board as soon as the person has knowledge that a potential conflict might exist. Srm also conducts periodic and adhoc reviews of transactions and agreements to ensure that it does not engage in activities that are not consistent with its tax-exempt purpose.”

“The process for determining the reasonableness of the compensation for srm's president, executive vice-president/chief financial officer and executive vice-president/general counsel included retaining the services of a nationally known compensation consultant to provide data and analysis to determine comparable salary and benefits for similarly qualified persons in comparable positions at similarly situated organizations. Compensation for all positions was documented in employment contracts which were approved by the governing body as documented in the official minutes. The last completed review process for all listed positions was in 2012.”

“Stowers resource management inc.'s governing documents, conflict of interest policy, and financial statements are available upon request.”

“Richard w. Brown, roderick l. Sturgeon, and david a. Welte, officers of srm, also perform support services for one or more of the related organizations disclosed in schedule r. These services are performed in their role as srm employees and srm is reimbursed by the related organizations.”

“Srm received expense reimbursements from simr, a 501(c)(3) related organization, in the amount of $19,786,807 for support services provided by srm.”

“Srm received expense reimbursements from bvd, a related party, in the amount of $212,692 for administrative support services provided by srm. Srm allocated the costs of providing these services to bvd.”

“Srm received expense reimbursements from spi, a related party, in the amount of $6,000 for support services provided by srm.”

“The stowers resource management inc. ("srm") operates exclusively within the meaning of code sections 501(c)(3) and 509(a)(3). Srm's charitable purpose is to support, benefit, and carry out the purposes of its supported organization. Srm currently supports stowers institute for medical research ("simr"). Simr is a tax exempt organization described in section 501(c)(3), and public charity described in sections 509(a)(1) and 170(b)(1)(a)(iii). Simr is actively engaged in scientific research in the public interest. Srm helps manage simr's endowment, provides management support, and fundraises for their benefit. The management support involves assisting in planning for the strategic direction of simr, operational planning, development, and implementation of strategic business plans and budgets. The contributions, grants, and income from srm's endowment are used to support the exempt activities of simr.”

“Equity transfers from related 501(c)(2) org (note 1) 1,248,215 annuity payment to simr 30,000,000 actuarial loss on annuity obligation (20,634,791) other changes in net assets 10,613,424 note 1: srm received pass-through amounts from stowers real estate holding corporation ("srehc"). Srm is the tax exempt parent of srehc. Srehc is a tax exempt organization under section 501(c) (2) of the code, and as such, srehc remits their net income and makes other transfers to its tax exempt parent, srm. Srm accrued $1,248,215 of srehc 2013 net income, received in 2014.”