2021-11-11T17:17:25-06:00 2020-12-31 366055558 GRANT THORNTON LLP 100 E WISCONSIN AVE MILWAUKEE WI 53202 990 2020-01-01 362179768 VERSITI ILLINOIS INC VERS 6308927055 1200 N HIGHLAND AVENUE AURORA IL 60506 CHRIS MISKEL PRESIDENT & CEO 6308927055 2021-11-10 1 CHRIS MISKEL MICHELLE L WEBER P00556798 4142898200 3 AAL1 IAL1 2020 2022-09-23 18:48:47Z CHRIS MISKEL 638 N 18TH STREET MILWAUKEE WI 532332121 59395543 0 X WWW.VERSITI.ORG X 1943 IL (SEE SCHEDULE O) VERSITI ILLINOIS, INC. (VERSITI ILLINOIS) IS A BLOOD HEALTH INNOVATOR WHO ENHANCES LIVES THROUGH DISCOVERY, DIAGNOSIS AND TREATMENT. VERSITI EXPANDS THE FRONTIERS OF PATIENT HEALTH THROUGH THE INTEGRATION OF SCIENCE, MEDICINE AND SERVICE. 16 15 580 66 588390 22281 3637 1009 49736838 50982759 1083706 1443505 283773 193926 51107954 52621199 117094 1329800 0 0 19536498 19574410 0 0 0 31676281 29119799 51329873 50024009 -221919 2597190 55435935 60773088 4943290 5089236 50492645 55683852 VERSITI ILLINOIS, INC. (VERSITI) IS A BLOOD HEALTH INNOVATOR WHO ENHANCES LIVES THROUGH DISCOVERY, DIAGNOSIS AND TREATMENT. VERSITI EXPANDS THE FRONTIERS OF PATIENT HEALTH THROUGH THE INTEGRATION OF SCIENCE, MEDICINE AND SERVICE. 0 0 43311546 1329800 51158599 VERSITI RECRUITS VOLUNTEER BLOOD DONORS, COLLECTS, PROCESSES AND DISTRIBUTES BLOOD AND BLOOD COMPONENTS TO PROVIDE A SAFE AND RELIABLE SUPPLY OF BLOOD FOR HOSPITALS AND OTHER BLOOD CENTERS SERVED. DURING 2020, THERE WERE 133,706 BLOOD UNITS COLLECTED.VERSITI PROVIDES CLINICAL DIAGNOSTIC TESTING SERVICES TO HOSPITALS, PHYSICIAN OFFICES AND OTHER REFERENCE LABORATORIES. DURING 2020, 24,843 TESTS WERE PERFORMED. 43311546 1 0 0 0 0 0 0 0 0 1 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 580 1 1 1 0 0 0 0 0 0 0 0 0 1 0 X 16 15 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 IL X JOANNA MCCOY 6308013147 1200 N HIGHLAND AVE AURORA IL 60506 X CHRIS MISKEL PRESIDENT & CEO 9.00 46.00 X X 166229 853577 43085 THOMAS ABSHIRE MD EVP MSI & CHIEF MED OFFICER 0.00 55.00 X 0 671220 25280 BRIAN BAUTISTA EVP & CHIEF OPERATING OFFICER 9.00 46.00 X 105541 541954 43085 BART REUTER EVP & GENERAL COUNSEL 9.00 46.00 X 95926 492575 43640 ANTHONY WATKINS EVP & CHIEF FINANCIAL OFFICER 7.00 37.00 X 84368 433231 36332 GITESH DUBAL EVP & CHIEF MARKETING OFFICER 9.00 46.00 X 78848 404884 41028 JAMES WEIDNER EVP & CHIEF HR OFFICER 9.00 46.00 X 68412 351294 38589 BRADLEY PIETZ EVP & CHIEF INNOVATION OFFICER 9.00 46.00 X 62556 321221 43406 LYNNE BRIGGS VP & CHIEF INFORMATION OFFICER 9.00 46.00 X 60923 312838 46219 MARGARET MCELLIGOTT VP & CHIEF QUALITY OFFICER 9.00 46.00 X 51742 265698 37051 GILBERT C WHITE MD PRINCIPAL INVESTIGATOR 0.00 28.00 X 0 317144 29436 KEVIN HA ASSOCIATE MEDICAL DIRECTOR 55.00 0.00 X 233192 0 24361 DANA KNIGHT DIRECTOR OF QUALITY ASSURANCE 55.00 0.00 X 165834 0 18599 JACK STEIN ORACLE PROGRAMMER 55.00 0.00 X 113927 0 23461 SHELLEY M WHITSEY-MITCHELL REGIONAL MGR OF MOBILE RECRUITMENT 55.00 0.00 X 110447 0 21026 DENENA EDWARDS DIRECTOR OF DONOR SERVICES OPERATIONS - AS OF 7/20 55.00 0.00 X 108192 0 12214 DALE KENT CHAIR 1.00 5.00 X X 0 0 0 THOMAS HAUSKE JR VICE CHAIR 1.00 4.00 X X 0 0 0 JAMES M RAUH SECRETARY 1.00 5.00 X X 0 0 0 JOHN PERRAS TREASURER 1.00 4.00 X X 0 0 0 CATHY BUCK BOARD MEMBER - THRU 5/2020 1.00 3.00 X 0 0 0 FRED GEILFUSS BOARD MEMBER; LEGAL ADVISOR 1.00 4.00 X 0 0 0 DAVID GINSBURG MD BOARD MEMBER 1.00 4.00 X 0 0 0 GAIL HANSON BOARD MEMBER 1.00 4.00 X 0 0 0 SHERRY HUSA BOARD MEMBER 1.00 4.00 X 0 0 0 ROBERT H MANEGOLD BOARD MEMBER 1.00 5.00 X 0 0 0 JEFFREY S MCDONALD BOARD MEMBER 1.00 4.00 X 0 0 0 RON MILLER BOARD MEMBER 1.00 4.00 X 0 0 0 MITCHELL G WATT BOARD MEMBER 1.00 4.00 X 0 0 0 GREG WESLEY BOARD MEMBER 1.00 4.00 X 0 0 0 L ALAN WHALEY BOARD MEMBER 1.00 4.00 X 0 0 0 PETER ZIEGLER BOARD MEMBER 1.00 5.00 X 0 0 0 1506137 4965636 526812 11 1 1 0 MEDSPEED LLC 655 WEST GRAND AVE ELMHURST IL 60126 DELIVERY SERVICES 3047106 INVITA HEALTHCARE TECHNOLOGIES 135 2ND AVENUE NORTH JACKSONVILLE FL 32250 SOFTWARE SUPPORT 359970 ME BOCK INC 33280 N MILL RD GRAYSLAKE IL 60030 EQUIPMENT SERVICE 223759 US MESSENGER & LOGISTICS INC 7790 S QUINCY ST WILLOWBROOK IL 60527 DELIVERY SERVICES 223607 CALL FLAWLESS INC 1010 CELEBRATION DR AURORA IL 60504 CLEANING SERVICES 212519 8 1009 1009 BLOOD SERVICES 621500 48336681 47748291 588390 DIAGNOSTIC LABORATORIES 621500 2646078 2646078 50982759 917031 917031 7296818 4000 6730846 43498 565972 -39498 526474 526474 EARNED DISCOUNTS 621500 175840 175840 PATRONAGE DIVIDENDS 900099 18086 18086 193926 52621199 50570209 588390 1461591 X 1329800 1329800 835253 835253 14708833 13914953 793880 707300 662683 44617 2259356 2061679 197677 1063668 957209 106459 32339 32023 316 7750 7750 7334 7334 6847639 6751459 96180 7158 7158 233749 216733 17016 509103 369582 139521 1923616 1150817 772799 508423 476389 32034 4387 2469 1918 1236032 701925 534107 115294 115294 COST OF IMPORTED PROD 7842398 7842398 MEDICAL LAB SUPPLIES 5193733 5193733 VERSITI SERVICES ALLOC 3565148 765512 2799636 0 EQUIPMENT LEASE/MAINT 542740 394628 148112 542956 480396 62560 50024009 43311546 6712463 0 0 0 0 0 0 0 9500162 11282888 0 0 0 0 436269 350723 2000841 2138321 139272 83617 28844401 22506176 6709283 6338225 0 0 36441268 40370639 0 0 0 0 208840 208675 55435935 60773088 4789478 4494836 0 0 0 0 0 0 0 0 0 0 0 0 0 0 153812 594400 4943290 5089236 X 50492645 55683852 50492645 55683852 55435935 60773088 X 2597190 2555897 -138 38258 X 0 1 X 1 0 X 1527 2590 6653 3637 1009 15416 51410124 53103939 51247872 50007732 50570209 256339876 51411651 53106529 51254525 50011369 50571218 256355292 0 4418127 4016266 5335972 5006469 5985875 24762709 4418127 4016266 5335972 5006469 5985875 24762709 231592583 466528 761450 937136 1075932 917031 4158077 22281 22281 466528 761450 937136 1075932 939312 4180358 3693 384 421 17681 18086 40265 51881872 53868363 52192082 51104982 51528616 260575915 0.88880 0.89180 0.01600 0.01390 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: PATRONAGE DIVIDENDS - 2016 AMOUNT: $ 0. 2017 AMOUNT: $ 0. 2018 AMOUNT: $ 0. 2019 AMOUNT: $ 14,681. 2020 AMOUNT: $ 18,086. MISCELLANEOUS REVENUE - 2016 AMOUNT: $ 3,693. 2017 AMOUNT: $ 384. 2018 AMOUNT: $ 421. 2019 AMOUNT: $ 3,000. 2020 AMOUNT: $ 0. 89992682 4494881 9457908 4333452 99612019 77632272 2512261 14163049 4314900 89992682 86045725 301738 -4472887 4242304 77632272 76439806 2294914 11411375 4100370 86045725 72401518 793676 7045041 3800429 76439806 0.97930 0.02070 0 1 1 425219 425219 14768333 10935423 3832910 285186 90309 194877 10990917 9507867 1483050 2374746 1972577 402169 6338225 MUTUAL FUNDS 40370639 F 40370639 DEFERRED PAYROLL TAXES 432748 LONG TERM RETIRMENT LIABILITIES 161652 594400 X 55033282 2555897 -138 2555759 52477523 7334 136342 143676 52621199 49842075 1240 1240 49840835 7334 175840 183174 50024009 PART V, LINE 4: ENDOWMENTS THE FILING ORGANIZATION IS A BENEFICIARY OF THE VERSITI BLOOD RESEARCH INSTITUTE FOUNDATION'S ("VBRIF") ENDOWMENT AS A SUPPORTED ORGANIZATION. THE BOARD DESIGNATED ENDOWMENT FUNDS ARE DESIGNATED BY THE BOARD AS ENDOWMENT FUNDS TO ENSURE THE CONTINUING AVAILABILITY OF FUNDS FOR RESEARCH PURPOSES. PART X, LINE 2: INCOME TAXES VERSITI, WISCONSIN, ILLINOIS, MICHIGAN, INDIANA AND THE FOUNDATION HAVE ALL RECEIVED TAX DETERMINATION LETTERS CONFIRMING THAT THE ORGANIZATIONS QUALIFY AS TAX-EXEMPT ORGANIZATIONS UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC). THE ORGANIZATION FOLLOWS GUIDANCE THAT CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN, INCLUDING ISSUES RELATING TO FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT. THIS GUIDANCE PROVIDES THAT THE TAX EFFECTS FROM AN UNCERTAIN TAX POSITION CAN ONLY BE RECOGNIZED IN THE FINANCIAL STATEMENTS IF THE POSITION IS MORE LIKELY THAN NOT TO BE SUSTAINED IF THE POSITION WERE TO BE CHALLENGED BY A TAXING AUTHORITY. THE ASSESSMENT OF THE TAX POSITION IS BASED SOLELY ON THE TECHNICAL MERITS OF THE POSITION, WITHOUT REGARD TO THE LIKELIHOOD THAT THE TAX POSITION MAY BE CHALLENGED. VERSITI, WISCONSIN, ILLINOIS, MICHIGAN, INDIANA AND THE FOUNDATION ARE EXEMPT FROM FEDERAL INCOME TAX UNDER IRC SECTION 501(C)(3), THOUGH THEY ARE SUBJECT TO TAX ON INCOME UNRELATED TO THEIR EXEMPT PURPOSES, UNLESS THAT INCOME IS OTHERWISE EXCLUDED BY THE IRC. THE ORGANIZATION HAS PROCESSES PRESENTLY IN PLACE TO ENSURE THE MAINTENANCE OF ITS TAX-EXEMPT STATUS; TO IDENTIFY AND REPORT UNRELATED INCOME; TO DETERMINE ITS FILING AND TAX OBLIGATIONS IN JURISDICTIONS FOR WHICH IT HAS NEXUS; AND TO IDENTIFY AND EVALUATE OTHER MATTERS THAT MAY BE CONSIDERED TAX POSITIONS. THE ORGANIZATION FILES FEDERAL AND STATE INCOME TAX RETURNS TO REPORT UNRELATED BUSINESS INCOME WHERE APPLICABLE, AND WITH FEW EXCEPTIONS, THOSE PERIODS GENERALLY REMAIN OPEN THREE YEARS FOR FEDERAL PURPOSES AND FOUR YEARS FOR STATE PURPOSES. THE STATUTE OF LIMITATIONS WILL REMAIN OPEN FOR ANY YEARS WHERE RETURNS WERE NOT FILED. THE ORGANIZATION HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. SALUS HAS BEEN ORGANIZED AS A LIMITED LIABILITY COMPANY AND, ACCORDINGLY, IS NOT SUBJECT TO FEDERAL OR STATE INCOME TAXES. ALL INCOME TAX ATTRIBUTES OF THE ENTITY ARE PASSED THROUGH TO ITS SOLE MEMBER, WISCONSIN. THE ENTITY IS INCLUDED IN THE CONSOLIDATED INFORMATION RETURN FILED BY VERSITI. CENETRON HAS BEEN ORGANIZED AS A WHOLLY OWNED LLC THAT HAS ELECTED TO BE TREATED AS A C-CORPORATION FOR TAX PURPOSES AND SO IS SUBJECT TO FEDERAL AND STATE INCOME TAXES. INCOME TAXES ARE PROVIDED FOR THE TAX EFFECTS OF TRANSACTIONS REPORTED BY CENETRON AND CONSIST OF TAXES CURRENTLY DUE AND DEFERRED TAXES. DEFERRED TAXES ARE RECOGNIZED FOR DIFFERENCES BETWEEN THE BASIS OF ASSETS AND LIABILITIES FOR FINANCIAL STATEMENT AND INCOME TAX PURPOSES. THE DIFFERENCES RELATE PRIMARILY TO INTANGIBLE ASSETS. THE DEFERRED TAX ASSETS AND LIABILITIES REPRESENT THE FUTURE TAX RETURN CONSEQUENCES OF THOSE DIFFERENCES, WHICH WILL EITHER BE TAXABLE OR DEDUCTIBLE WHEN THE ASSETS AND LIABILITIES ARE RECOVERED OR SETTLED. CENETRON IS SUBJECT TO TAXATION IN THE UNITED STATES AND THE STATE OF TEXAS. THE ORGANIZATION RECOGNIZES, IF NECESSARY, INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN THE PROVISION FOR INCOME TAXES. THERE WERE NO INTEREST OR PENALTIES RELATED TO INCOME TAXES THAT HAVE BEEN ACCRUED OR RECOGNIZED AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019. PART XI, LINE 2D - OTHER ADJUSTMENTS: PRIOR PERIOD ADJUSTMENT -138. PART XI, LINE 4B - OTHER ADJUSTMENTS: EARNED DISCOUNTS 175,840. LOSS ON DISPOSITION OF FIXED ASSETS -39,498. PART XII, LINE 2D - OTHER ADJUSTMENTS: BAD DEBT RESERVE ADJUSTMENT -38,258. LOSS ON DISPOSITION OF FIXED ASSETS 39,498. PART XII, LINE 4B - OTHER ADJUSTMENTS: EARNED DISCOUNTS 175,840. 1 VERSITI BLOOD RESEARCH INSTITUTE FOUNDATION INC PO BOX 2178 638 N 18TH STREET MILWAUKEE WI 532012178 391372542 501(C)(3) 1304000 GENERAL SUPPORT 1 PART I, LINE 2: PROCEDURE FOR MONITORING USE OF GRANT FUNDS INSIDE U.S. FROM TIME TO TIME, VERSITI ILLINOIS PROVIDES GRANT ASSISTANCE TO VERSITI WISCONSIN, INC. AND OTHER ORGANIZATIONS. THESE FUNDS WILL SUPPORT FUTURE BLOOD RESEARCH AND OTHER INITIATIVES TO SERVE MORE PATIENTS AND REDUCE OVERALL COSTS. MONITORING THE INVESTMENT OF THESE FUNDS, THE DISTRIBUTIONS AND WHAT THESE FUNDS ARE USED FOR IS COMPLETED BY THE LEADERSHIP OF VERSITI. ADDITIONALLY, THE FILING ORGANIZATION OFFERS SCHOLARSHIPS TO EMPLOYEES AND COMMUNITY MEMBERS IF CERTAIN CRITERIA ARE MET. THE SCHOLARSHIPS ARE SENT TO THE COLLEGE OR UNIVERSITY WHERE THE STUDENT IS ENROLLED. THERE WERE NO SCHOLARSHIPS DISBURSED DURING 2020. 0 0 0 0 1 0 1 1 0 CHRIS MISKEL PRESIDENT & CEO 111109 570541 54880 281806 240 1230 3179 16321 3844 19741 173252 889639 0 0 THOMAS ABSHIRE MD EVP MSI & CHIEF MED OFFICER 0 517993 0 146405 0 6822 0 22800 0 2480 0 696500 0 0 BRIAN BAUTISTA EVP & CHIEF OPERATING OFFICER 73847 379201 31357 161020 337 1733 3179 16321 3844 19741 112564 578016 0 0 BART REUTER EVP & GENERAL COUNSEL 63153 324287 32436 166555 337 1733 3139 16116 3975 20410 103040 529101 0 0 ANTHONY WATKINS EVP & CHIEF FINANCIAL OFFICER 60516 310747 21544 110629 2308 11855 3252 16698 2670 13712 90290 463641 0 0 GITESH DUBAL EVP & CHIEF MARKETING OFFICER 60530 310822 18078 92832 240 1230 2843 14600 3844 19741 85535 439225 0 0 JAMES WEIDNER EVP & CHIEF HR OFFICER 51154 262674 16668 85591 590 3029 3252 16698 3038 15601 74702 383593 0 0 BRADLEY PIETZ EVP & CHIEF INNOVATION OFFICER 46813 240385 15440 79283 303 1553 3131 16078 3944 20253 69631 357552 0 0 LYNNE BRIGGS VP & CHIEF INFORMATION OFFICER 48149 247242 11922 61222 852 4374 3716 19084 3817 19602 68456 351524 0 0 MARGARET MCELLIGOTT VP & CHIEF QUALITY OFFICER 41586 213543 9313 47825 843 4330 3396 17439 2643 13573 57781 296710 0 0 GILBERT C WHITE MD PRINCIPAL INVESTIGATOR 0 202525 0 112095 0 2524 0 13500 0 15936 0 346580 0 0 KEVIN HA ASSOCIATE MEDICAL DIRECTOR 223944 0 7850 0 1398 0 15400 0 8961 0 257553 0 0 0 DANA KNIGHT DIRECTOR OF QUALITY ASSURANCE 147415 0 17229 0 1190 0 10467 0 8132 0 184433 0 0 0 PART I, LINE 3: TOP MANAGEMENT'S COMPENSATION THE COMPENSATION COMMITTEE OF THE VERSITI BOARD OF DIRECTORS, ACTING IN ITS CAPACITY AS THE COMPENSATION COMMITTEE, SETS AND MONITORS THE COMPENSATION PHILOSOPHY FOR VERSITI AND THE RELATED ENTITIES THAT IT SUPPORTS, INCLUDING VERSITI ILLINOIS. OTHER THAN THE VERSITI PRESIDENT & CHIEF EXECUTIVE OFFICER, THE COMPENSATION COMMITTEE DOES NOT INCLUDE MEMBERS OF MANAGEMENT AND IS COMPRISED ENTIRELY OF INDIVIDUALS WHO DO NOT HAVE A CONFLICT OF INTEREST WITH RESPECT TO VERSITI OR VERSITI ILLINOIS COMPENSATION ARRANGEMENTS. THE VERSITI PRESIDENT AND CHIEF EXECUTIVE OFFICER RECUSES HER/HIMSELF FROM ALL DISCUSSIONS AND APPROVALS RELATED TO HER/HIS COMPENSATION. THE VERSITI COMPENSATION COMMITTEE REVIEWS VERSITI ILLINOIS EXECUTIVE COMPENSATION ARRANGEMENTS TO ENSURE SUCH ARRANGEMENTS ARE FAIR, REASONABLE, AND NOT EXCESSIVE WHEN COMPARED TO SIMILARLY-SITUATED EXECUTIVES. EXECUTIVE COMPENSATION ARRANGEMENTS ARE REVIEWED FOR REASONABLENESS AND APPROVED BY THE COMPENSATION COMMITTEE ANNUALLY IN ACCORDANCE WITH THE VERSITI REASONABLENESS REVIEW POLICY. THE COMPENSATION COMMITTEE ASSESSES THE REASONABLENESS OF EXECUTIVE COMPENSATION ARRANGEMENTS AFTER IT OBTAINS AND REVIEWS APPROPRIATE DATA FOR COMPARABILITY FROM THE HUMAN RESOURCE DEPARTMENT AND/OR AN INDEPENDENT COMPENSATION CONSULTANT. THE COMPENSATION COMMITTEE ENGAGES A QUALIFIED INDEPENDENT COMPENSATION CONSULTANT ANNUALLY. THE INDEPENDENT CONSULTANT PERFORMS AN ANALYSIS OF COMPENSATION LEVELS AT REGIONAL AND NATIONAL ORGANIZATIONS OF COMPARABLE SIZE, SCOPE AND STRUCTURE AND PROVIDES THE COMMITTEE WITH COMPREHENSIVE DATA ON THE AVAILABILITY OF SIMILAR SERVICES WITHIN THE GEOGRAPHIC AREA, COMPENSATION SURVEYS, WRITTEN OFFERS FROM SIMILAR INSTITUTIONS, AND OTHER INFORMATION RELEVANT TO COMPARABILITY OF COMPENSATION. THE COMPENSATION COMMITTEE'S REVIEW, RECOMMENDATIONS AND APPROVALS ARE DOCUMENTED CONCURRENTLY IN THE COMMITTEE MINUTES, WHICH ARE SUBSEQUENTLY REVIEWED AND APPROVED BY THE COMPENSATION COMMITTEE AS REASONABLE, ACCURATE AND COMPLETE. VERSITI AND VERSITI ILLINOIS HAVE INCENTIVE PROGRAMS FOR THE CHIEF EXECUTIVE OFFICER AND OTHER CORPORATE OFFICERS DESCRIBED IN DETAILED WRITTEN POLICIES APPROVED BY THE COMPENSATION COMMITTEE ANNUALLY. EVALUATION AND COMPENSATION REVIEW -CEO - EACH YEAR, THE EXECUTIVE/COMPENSATION COMMITTEE EVALUATES THE VERSITI/VERSITI ILLINOIS CEO'S PERFORMANCE AGAINST ESTABLISHED OBJECTIVES, DETERMINES INCENTIVE PAYMENT AND MERIT INCREASE BASED UPON PERFORMANCE AND MARKET DATA PROVIDED BY THE THIRD PARTY COMPENSATION CONSULTANT, AND WORKS WITH THE CEO TO ESTABLISH OBJECTIVES FOR THE NEXT YEAR. -OTHER CORPORATE OFFICERS - EACH YEAR, THE VERSITI/VERSITI ILLINOIS CEO REVIEWS THE PERFORMANCE AND THE ACHIEVEMENT OF INDIVIDUAL GOALS AND OBJECTIVES OF EACH VERSITI/VERSITI ILLINOIS CORPORATE OFFICER. THE VERSITI/VERSITI ILLINOIS CEO PRESENTS HIS/HER RECOMMENDATIONS TO THE COMPENSATION COMMITTEE, WHICH REVIEWS AND APPROVES RECOMMENDED COMPENSATION RANGES, AND APPROVES FINAL SALARY AND INCENTIVE PAYMENTS. CORPORATE OFFICERS ARE POSITIONED WITHIN THE APPROPRIATE SALARY RANGE BASED UPON: -EXECUTIVE'S KNOWLEDGE, COMPETENCIES, AND EXPERIENCE, -PERFORMANCE OF THE EXECUTIVE'S AREAS OF RESPONSIBILITY, -THE EXECUTIVE'S CONTRIBUTION TO OVERALL PERFORMANCE, -THE IMPORTANCE OF RETAINING THE EXECUTIVE, -INTERNAL EQUITY CONSIDERATIONS, -THE FINANCIAL RESOURCES AVAILABLE, AND -EXECUTIVE BASE SALARY INCREASES PROVIDED IN THE COMPETITIVE MARKET PART I, LINE 5B, 6B AND 7: NON-FIXED PAYMENTS INCENTIVE PAYOUT OPPORTUNITIES, BASED ON PERCENTAGE OF BASE PAY RATE, ARE AVAILABLE TO CERTAIN EMPLOYEES OF THE FILING ORGANIZATION. WHILE LEVELS OF THE INCENTIVE PAYOUT OPPORTUNITY ARE FIXED AND DETERMINED PERCENTAGES OF BASE COMPENSATION, THE INCENTIVE PAYOUT IS DETERMINED; IN PART, ON THE CONSOLIDATED REVENUE AND NET EARNING OF OPERATING DIVISIONS. THE INCENTIVE PAYOUT IS SUBJECT TO THE REVIEW OF ACCOMPLISHMENTS/OBJECTIVES AND THE ULTIMATE DETERMINATION OF INCENTIVE COMPENSATION IS SUBJECT TO PRESIDENT/CEO AND EXECUTIVE COMMITTEE OF THE BOARD APPROVAL. FORM 990, PART VI, SECTION A, LINE 6 MEMBERS OR STOCKHOLDERS VERSITI, INC. (A 501(C)(3) ORGANIZATION) IS THE SOLE CORPORATE MEMBER. FORM 990, PART VI, SECTION A, LINE 7A MEMBER OR STOCKHOLDER POWERS VERSITI, INC. HAS RESERVE POWERS; INCLUDING THE ABILITY TO ELECT A MAJORITY OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B REFER TO NARRATIVE LISTED IN LINE 7A. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 REVIEW VERSITI ILLINOIS UTILIZES GRANT THORNTON LLP TO COMPLETE THE IRS FORM 990 AND RELATED SCHEDULES. FOLLOWING COMPLETION, THEY ARE REVIEWED BY THE CONTROLLER AND CEO. THE DRAFT FORMS ARE THEN REVIEWED BY THE COMPLIANCE AND AUDIT COMMITTEE PRIOR TO SUBMISSION TO THE IRS. THE FULL BOARD IS PROVIDED A COPY OF THE FORM 990 PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY VERSITI ILLINOIS MAINTAINS A WRITTEN CONFLICT OF INTEREST POLICY. ON AN ANNUAL BASIS, CURRENT DIRECTORS AND OFFICERS ARE ASKED TO COMPLETE A DISCLOSURE FORM BASED ON IRS REQUIREMENTS THAT INCLUDES THE FOLLOWING: WHETHER THEY HAVE ANY DIRECT OR INDIRECT RELATIONSHIP EITHER THROUGH BUSINESS OR FAMILY MEMBER WITH THE ORGANIZATION. WHETHER THEY RECEIVED COMPENSATION FROM ANY ORGANIZATION THAT SHARES COMMON OWNERSHIP OR CONTROL WITH THE ORGANIZATION. WHETHER THEY HAVE SERVED AS AN OFFICER, DIRECTOR, KEY EMPLOYEE, PARTNER OR MEMBER OF AN ENTITY (OR SHAREHOLDER OF A PROFESSIONAL CORPORATION) DOING BUSINESS WITH THE ORGANIZATION. THESE ANSWERS ARE ACCUMULATED, SUMMARIZED AND EVALUATED BY MANAGEMENT TO DETERMINE IF ANY CONFLICTS EXIST. IDENTIFIED CONFLICTS ARE ADDRESSED IN ACCORDANCE WITH THE WRITTEN POLICY. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION PROCESS THE COMPENSATION COMMITTEE OF THE VERSITI BOARD OF DIRECTORS, ACTING IN ITS CAPACITY AS THE COMPENSATION COMMITTEE, SETS AND MONITORS THE COMPENSATION PHILOSOPHY FOR VERSITI AND THE RELATED ENTITIES THAT IT SUPPORTS, INCLUDING VERSITI ILLINOIS. FORM 990, PART VI, SECTION C, LINE 19 ORGANIZATION'S DOCUMENTS OPEN TO THE PUBLIC THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST DURING NORMAL BUSINESS HOURS AND AT THE ORGANIZATION'S LOCATION. FORM 990, PART IX, LINE 11G DONOR TESTING: PROGRAM SERVICE EXPENSES 4,795,616. TOTAL EXPENSES 4,795,616. PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 1,360,712. TOTAL EXPENSES 1,360,712. SHIPPING AND TRANSPORTATION: PROGRAM SERVICE EXPENSES 289,363. MANAGEMENT AND GENERAL EXPENSES 53,975. TOTAL EXPENSES 343,338. CUSTOMER TESTING: PROGRAM SERVICE EXPENSES 188,721. TOTAL EXPENSES 188,721. TEMPORARY HELP: PROGRAM SERVICE EXPENSES 46,836. MANAGEMENT AND GENERAL EXPENSES 13,713. TOTAL EXPENSES 60,549. CONSULTING SERVICES: PROGRAM SERVICE EXPENSES 38,795. MANAGEMENT AND GENERAL EXPENSES 15,028. TOTAL EXPENSES 53,823. RECORD STORAGE: PROGRAM SERVICE EXPENSES 17,200. TOTAL EXPENSES 17,200. LICENSES, PERMITS, & HOSP FEES: PROGRAM SERVICE EXPENSES 8,561. TOTAL EXPENSES 8,561. EMPLOYMENT RECRUITMENT FEES: MANAGEMENT AND GENERAL EXPENSES 8,000. TOTAL EXPENSES 8,000. NON MARKETING PRINTING COST: PROGRAM SERVICE EXPENSES 4,910. MANAGEMENT AND GENERAL EXPENSES 935. TOTAL EXPENSES 5,845. MISCELLANEOUS: PROGRAM SERVICE EXPENSES 745. MANAGEMENT AND GENERAL EXPENSES 4,529. TOTAL EXPENSES 5,274. FORM 990, PART XI, LINE 9: BAD DEBT RESERVE ADJUSTMENT 38,258. PART VII: AVERAGE HOURS THE HOURS LISTED ON FROM 990, PART VII ARE REPRESENTATIVE OF AN AVERAGE FOR THE OFFICERS AND EXECUTIVE TEAM. EACH INDIVIDUAL PERSON'S WEEKLY TALLY MAY BE GREATER OR LESSER PER WEEK BASED ON THEIR INDIVIDUAL ROLES AND RESPONSIBILITIES WITHIN THE FILING ORGANIZATION AND RELATED PARTIES. VERSITI INC PO BOX 2178 638 N 18TH ST MILWAUKEE WI 53201 454675354 SUPPORTING WI 501(C)(3) LINE 12B, II N/A 0 VERSITI WISCONSIN INC PO BOX 2178 638 N 18TH ST MILWAUKEE WI 53201 390807235 BLOOD WI 501(C)(3) LINE 7 VERSITI 0 VERSITI MICHIGAN INC 1036 FULLER AVE NE GRAND RAPIDS MI 49503 381550001 BLOOD MI 501(C)(3) LINE 10 VERSITI 0 VERSITI BLOOD RESEARCH INSTITUTE FNDN PO BOX 2178 638 N 18TH ST MILWAUKEE WI 53201 391372542 SUPPORTING WI 501(C)(3) LINE 12B, II VERSITI 0 VERSITI INDIANA INC 3450 N MERIDIAN ST INDIANAPOLIS IN 46208 350991629 BLOOD IN 501(C)(3) LINE 10 VERSITI 0 0 1 0 0 0 0 0 0 0 0 0 1 1 0 1 1 1 1 1