Special Olympics Kentucky Inc.

“Reviewed by governing board before filing.”

“Procedures to manage conflicts. For each interest disclosed, the full board, or the President/CEO or the Chairman of the Board, as appropriate, will determine whether the organization should: (a) take no action, or (b) disclose the situation more broadly and invite discussion/resolution by the full board of what action to take, or (c) refrain from taking action and otherwise avoid the conflict. In most cases the broadest disclosure possible is advisable so that decision-makers can make informed decisions that are in the best interests of Special Olympics Kentucky.When the conflict involves a decision-maker, the person with the conflict (interested party): (a) must fully disclose the conflict to all other decision-makers; (b) may not be involved in the decision of what action to take (e.g., may not participate in a vote) but may serve as a resource to provide other decision-makers with needed information.In some cases the person with the conflict may be asked to excuse him/herself from sensitive discussions so as not to unduly influence the discussion of the conflict.In all cases, decisions involving a conflict will be made only be to the disinterested persons.The fact that a conflict was managed and the outcome will be documented in the minutes of the board meeting if the conflict was related to a board member, and reported by the President/CEO to the Chairman of the Board if the conflict was related to a staff member.The Chairman of the Board/President/CEO will monitor proposed or ongoing transactions of Special Olympics Kentucky (e.g., contracts with vendors and collaborations with third parties) for conflicts of interest and disclose them to the Board and staff, as appropriate, whether discovered before or after the transaction has occurred.”

“This policy will include three steps the board will take when reviewing and approving compensation for senior staff. The steps are: 1. review and approval by the governing body or compensation committee of the compensation provided the top manager of SOKY; 2. Review of comparable positions at similarly situated organizations; 3. Contemporaneous documentation and recordkeeping with respect to the deliberations and decisions regarding the compensation arrangement.”

“Financial statements are prepared and disclosed on a yearly basis. Governing documents and policies are disclosed as updated. All documents are available to the public upon written request.”

“Client Note 1 - Part I, Line 2B Column (II)THE ORGANIZATION HAS AN AGREEMENT WITH OHIO MILLS WHOLESALE TO ACT AS A LICENSEE OF THE ORGANIZATION, USING THE SOKY BRAND TO SOLICIT, COLLECT AND WAREHOUSE DONATED ITEMS, INCLUDING CLOTHING, SHOES AND USED TEXTILES. OHIO MILLS HAS THE RIGHT TO PURCHASE ALL DONATED ITEMS AT THE COLLECTION BINS FOR A SET FEE PER MONTH. THE TRANSFER OF ITEMS BY SOKY IS IMMEDIATE ONCE THE ITEMS ARE PLACED IN OR ADJACENT TO THE COLLECTION BINS MAINTAINED BY OHIO MILLS. THIS RELATIONSHIP REQUIRES VERY LITTLE EFFORT ON THE PART OF THE ORGANIZATION YET RESULTS IN A SIGNIFICANT AMOUNT OF REVENUE FOR THE ORGANIZATION.”