Upper Chesapeake Health Foundation Inc.

“FAMILY OR BUSINESS RELATIONSHIP LYLE E. SHELDON AND JOSEPH E. HOFFMAN, III ARE OFFICERS IN A FEW OF THE SAME BUSINESS ENTITIES. PART VI, SECTION A, GOVERNING BODY & MANAGEMENT, QUESTIONS 6, 7a & 7b EXISTENCE OF MEMBERS University of Maryland medical system corporation (UMMS) is the sole member of Upper Chesapeake Health Foundation, Inc., UMMS may elect one or more board members of the governing body and all decisions of the governing body must be approved by UMMS.”

“Organizational review of form 990 the board of university of maryland upper chesapeake health system, inc. ("health system") has assigned the executive committee of the health system's board to review and approve all contents of form 990 on behalf of the boards of health system and all of health system's tax-exempt affiliates. In turn, once the form 990 has been approved by health system's executive committee, a final version of the form 990 will be made available to all board members of health system and health system's tax-exempt affiliates.”

“CONFLICT OF INTEREST POLICY The organization's written conflict of interest policy covers the following individuals: Directors, Principal Officers, and Senior Management. Furthermore, the policy extends to the family members (per Internal Revenue Service definition) of such Directors, Principal Officers, and Senior Management. The Board of Directors and any committee considering a contract, transaction or arrangement to which a known or potential conflict of interest relates, determines whether a conflict exists. Actual conflicts are reviewed by the Chairman of the Board. An individual with a known or potential conflict of interest must refrain from participating in, or acting on, the decision on any matter in which a conflict of interest, or even the appearance of such a conflict of interest, is present with respect to such individual and will remove himself or herself from any meeting or deliberations on the matter.”

“PROCESS FOR DETERMINING COMPENSATION THE filing ORGANIZATION, or a related organization, DETERMINES THE EXECUTIVE COMPENSATION PAID TO ITS EXECUTIVES IN THE FOLLOWING MANNER PRESCRIBED IN THE IRS REGULATIONS: EXECUTIVE COMPENSATION PACKAGES ARE DETERMINED BY A COMMITTEE OF THE BOARD THAT IS COMPOSED ENTIRELY OF BOARD MEMBERS WHO HAVE NO CONFLICT OF INTEREST. THE COMMITTEE ACQUIRES CREDIBLE COMPARABILITY MARKET DATA CONCERNING THE COMPENSATION PACKAGES OF SIMILARLY SITUATED EXECUTIVES. THE COMMITTEE CAREFULLY REVIEWS THAT DATA, THE EXECUTIVE'S PERFORMANCE AND THE PROPOSED COMPENSATION PACKAGES DURING THE DECISION MAKING PROCESS. THE COMMITTEE MEMORIALIZES ITS DELIBERATIONS IN DETAILED MINUTES REVIEWED AND ADOPTED AT THE NEXT-FOLLOWING MEETING. THE COMMITTEE SEEKS AN OPINION OF COUNSEL THAT IT HAS MET THE REQUIREMENTS OF THE IRS INTERMEDIATE SANCTIONS REGULATIONS. THIS PROCESS IS USED TO DETERMINE THE COMPENSATION PACKAGES FOR ALL MANAGEMENT EMPLOYEES FROM THE VICE PRESIDENT LEVEL AND UP.”

“Documents available to the public the organization will make the following documents available to the public upon request: articles of incorporation, bylaws, conflict of interest policy, and audited financial statements.”

“Reconciliation of Net Assets and Fund Balances Change in Investment Activity $39,262 Release of funds $(1,048,366) Adjustment of Pledges $6,625 Comp. Care Center release of funds $(4,654) Hospice in-kind donations $(3,539) Proceeeds from Willow Beach Rd sale $85,503 Routine Capital Transfers $(500,000) ----------- Total $1,425,169 ===========”