Delphi Schools Inc.

“SEE SCHEDULE L PART IV”

“The form 990 is reviewed by the corporation's management and board of directors.”

“Delphi schools, inc., has a conflict-of-interest policy and a whistle blower policy, which together ensure that any member of the corporation's board of directors (or any committee of the board of directors), and/or any officer, employee, fiduciary, or agent of the corporation (collectively "interested person"), who has a direct or indirect financial interest (a defined term, which includes all circumstances in which an interested person may profit from an action or decision by the corporation in which the interested personnel participates, and of which he or she has knowledge) in a transaction or activity, discloses the exsistence of the financial interest. Such disclosure must be made to the board of directors (or it's appropriate committee) which, in turn, must make a decision of whether a conflict exists, and if it does, whether the subject transaction or actitivy is in the corporation's best interest, is for the corporation's benefit, and is fair and reasonable. Violations result in appropriate disiplinary and corrective action. All officers, board members, and key personnel sign annual statements attesting to their compliance with the corporation's conflict-of-interest policy. All members of the board of directors, and all officers, employees, ficudicaries, and agents of the corporation, are also provided with a copy of the corporation's conflict- of-interest policy and whistle blower policy.”

“Delphi schools, inc., has a compensation policy that ensures against payments in excess of reasonable compensation to its officers, directors, and key employees -- that is, against payments in excess of compensation amounts that would ordinarily be paid for like services by a like organization under like circumstances. In addition, the corporation's conflict-of-interest policy requires periodic review by the board of directors to ensure that compensation arrangements and benefits for the corporation's officers, directors, and key employees do not exceed levels that are reasonable based on independent compensation consultant's written analysis and independent schools salary information provided by the national association of independent schools.”

“See explanation for part vi, line 15a.”

“Delphi schools, inc., makes its governing documents, conflict-of-interest policy, and/or financial statements available to the public only as required by federal and state law.”

“Delphi schools inc is a 501(c)(3) non-profit that owns and operates two organizations; a delphian school, a premier day and boarding school, and heron books, a creator and publisher of cutting edge k-12 curriculum. Both are located on a spacious and beautiful campus in the willamette valley of oregon, the heartland of the pacific northwest. Delphian school services students of all ages within a k-12 day and boarding program. It offers the delphi program to interested families and educators across the world. As the founding school of a network of schools using the delphi program, delphian provides a model example of how the program can be applied and the high standards that are achievable with this new, cutting-edge approach to education. It has been preparing students for life and higher education through its rigorous full-term and summer programs for over 40 years. With an international study body, a 700 acre campus and a 24-7 learning environment it's a uniquely challenging and rewarding place for a young person to establish career goals and tackle them head-on. Delphian is known for two things: a) cultivating capable graduates who are prepared for whatever is next and b) helping visiting schools and educators who seek to modernize their approach to education. Heron books provides a full spectrum of curriculum services and materials, beginning with individual books, courses and educational resources for individuals, home-schoolers, schools and business. It's largest service is a personalized, integrated and full k-12 curriculum package called the delphi program, it is used by a growing number of schools across the country. The delphi program has received national and international attention since its emergence on the educational scene in 1976 as the first personalized, ability-based program to accomplish high standards while working with students of all ages and educational backgrounds. Heron books is also known for providing unique study materials that specifically train students of all ages to study effectively and learn independently.”

“Scholarships awarded -2,152,813 cost of goods sold 119,230 scholarships awarded 2,152,813 cost of goods sold -119,230”