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        <Explanation>The glass Chihuly sculpture is a unique, one-of-a-kind Chandelier reminiscent of the DNA double helix. The Chandelier, which is placed in the reception area, provides motivation and inspiration as Scientists are driven to understand the genetic basis of diseases in their pursuit of cures and other therapies.</Explanation>
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        <ReturnReference>Part I, Line 1a</ReturnReference>
        <Explanation>VARI allows for first-class or charter travel to officers and Trustees. Fitness center membership dues were paid by VARI for Steve Heacock totaling $500. There is not a policy for Housing allowance or residence for personal use. This is offered only on rare occasions and for special circumstances. Human Resources manages this on a case by case basis.</Explanation>
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        <ReturnReference>Part I, Line 1b</ReturnReference>
        <Explanation>A written policy is in place for first class/ charter travel and Health/ Social club dues/ fees.</Explanation>
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      <Form990ScheduleJPartIII>
        <Identifier>Supplemental Information</Identifier>
        <ReturnReference>Part III</ReturnReference>
        <Explanation>PART I, LINE 4A: SEVERANCE PAID TO STEVE HEACOCK TOTALED $448,871 IN FISCAL YEAR 2010, $0 CALENDAR YEAR 2009 PART I, LINE 4B: STEVE HEACOCK $5,077 FISCAL YEAR 2010,$16,500 CALENDAR YEAR 2009 GEORGE VANDE WOUDE $16,500 FISCAL YEAR 2010 AND CALENDAR YEAR 2009</Explanation>
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      <Form990ScheduleJPartIII>
        <Identifier>Supplemental Information</Identifier>
        <ReturnReference>Part III</ReturnReference>
        <Explanation>PART II: DR. JEFFREY TRENT WAS EMPLOYED BY THE TRANSLATIONAL GENOMICS RESEARCH INSTITUTE (TGEN), A RELATED PARTY, DURING CALENDAR YEAR 2009. TGEN BECAME A RELATED PARTY TO VARI AS OF DECEMBER 1, 2009. ONE MONTH OF COMPENSATION IS THEREFORE REPORTED ON VARI'S FORM 990 PART VII AND SCHEDULE J PART II.</Explanation>
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        <DateIssued>2008-04-10</DateIssued>
        <IssuePrice>220000000</IssuePrice>
        <DescriptionOfPurpose>BUILD, EQUIP &amp; FURNISH PHASE II RESEARCH FACILITY, &amp; REFUND $50M PRIOR LTD</DescriptionOfPurpose>
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          <NamePerson>DR JEFFREY TRENT</NamePerson>
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      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section A, line 3</Identifier>
        <Explanation>Jerry Callahan, an Independent Contractor, serves as the Vice President of Business Development and Technology Transfer.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section A, line 4</Identifier>
        <Explanation>FORM 990, PART VI, SECTION A, LINE 4: THE VAN ANDEL RESEARCH INSTITUTE (VARI) AMENDED THEIR TRUST AGREEMENT TO GIVE AUTHORITY TO THE VAN ANDEL INSTITUTE BOARD OF DIRECTORS TO APPOINT AND REMOVE THE TRUSTEES OF VARI.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section A, line 7a</Identifier>
        <Explanation>THE TRUSTEES OF VAN ANDEL INSTITUTE HAVE THE AUTHORITY TO ELECT ONE OR MORE MEMBERS OF THE GOVERNING BODY.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section B, line 11</Identifier>
        <Explanation>Following completion of the financial audit, the Form 990 is prepared and reviewed by management. It is then circulated to the full Board for review and final approval prior to filing with the IRS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section B, line 12c</Identifier>
        <Explanation>VARI has a written conflict of interest policy for which the organization enforced a process to identify, evaluate, and correct or remove potential conflicts of interest. The Van Andel Institute administers the conflict of interest (COI) policy through two committees: the Individual COI committee and the Institutional COI committee. The COI policy serves as guide for all staff members of the organization. The policy is intended to 1) provide staff with a useful resource when developing activities with outside industry and 2) provide assurance to staff that there is a committee to review and resolve potential conflicts of interest if / when they arise. The Individual COI committee, chaired by the Director of Compliance, generates an annual disclosure questionnaire distributed to all staff to enforce the policy. The conflicts committee is responsible for making recommendations to the Director. Resolutions are implemented with approval of the committee and in discussion with the VAI Chairman. The COI policy also serves as a guide for all members of the Board of Trustees and senior executives. The Institutional COI committee requires Trustees to complete an annual disclosure statement. This statement affirms their understanding of the policy, requires their acknowledgement of the organization's nonprofit status, and requests disclosure if / when potential conflicts arise. In the event a potential conflict arises at the Board or senior officer level, the Office of the General Counsel reviews and meets with the Board of Trustees to resolve potential conflicts.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section B, line 15</Identifier>
        <Explanation>Compensation for the CEO, Executive Management Officials, Executive Director, officers, and key employees is reviewed and approved annually by the independent compensation committee. The compensation committee is under the Van Andel Institute board of trustees, although all employees are employed by either Van Andel Research Institute or Van Andel Education Institute. Records and documentation, including comparability data, are kept and support decisions made on behalf of these arrangements and are contemporaneously documented.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section C, line 19</Identifier>
        <Explanation>These documents are available to the public upon request.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part III, Lines 4a-4c</Identifier>
        <ReturnReference>VARI's three largest program services by expenses</ReturnReference>
        <Explanation>Line 4a - Program service activity #1 The laboratory of Structural Sciences is focused on studying the structures and functions of protein/ ligand complexes that play key roles in major hormone signaling pathways. The laboratory also works on exploring the structural information to develop therapeutic agents for treating human disease, including cancer and diabetes. Lab studies use multidisciplinary approaches, including molecular and cellular biology, biochemistry, animal physiology, and x-ray crystallography. Research in this group currently focuses on three areas: nuclear hormone receptors, the met tyrosine kinase receptor, and G protein-coupled receptors. These proteins, beyond their fundamental roles in biology, are important drug targets. In addition, this lab has extended their research to plant hormone abscisic acid (ABA) receptors. Recently they determined the structure of GR bound to deacylcortivazol (DAC), which binds to GR with 200-fold more potency than cortisol, the physiological glucocorticoid. The GR DAC structure reveals that the GR ligand binding pocket can be expanded dramatically, to twice its normal size. This new pocket provides a tremendous opportunity for drug design and screening. Using a computational screen, the lab identified several nonsteroidal ligands that like dissociated glucocorticoids in our cell-based assay. The lab is now running animal studies to confirm the physiological activities of these novel nonsteroidal ligands, which could lead to new methods of treating inflammation and autoimmune diseases. The lab has determined crystal structures of the ligand binding domain of the PTH and CRF receptors, and we are developing hormone analogs for treating osteoporosis, depression, and diabetes. Line 4b - Program service activity #2 Since discovering MET in 1984, and its ligand hepatocyte growth factor (HGF) in 1991, the laboratory of Molecular Oncology has focused on understanding the numerous and diverse roles that MET and HGF/SF plays in malignant progression and metastasis. Met is a transmembrane protein found in many different types of human cells. Increased expression of this protein has been found in most human solid tumors. The lab staff has developed antibodies against the Met protein that allow them to determine the location of cells that produce Met, and radiolabeled antibodies allow the imaging of tumors within living tissue. These antibodies have been shown to be valuable reagents for detecting cells that express Met. Studies are underway to determine for a variety of cancers the percentage that express the Met protein and to determine the feasibility of using Met expression or anti-Met antibodies as detection and prognostic tools for physicians. Recent lab achievements include the finding that MET may be an important target for an aggressive form of breast cancer, the development of important animal models for evaluating the efficacy of anti-HGF and/or anti-MET therapeutics, and the development of animal models for investigating the factors that modulate glioblastoma growth and evaluating therapeutic agents. Animal models are uniquely suited for evaluating new therapeutics, both alone and in combination with other therapeutics. Line 4c - Program service activity #3 The Laboratory of Cancer and Developmental Cell Biology is collaborating with various other physicians to try to exploit the properties of anthrax lethal factor and develop a new way to fight cancers such as melanoma, as well as to provide insight into the regulation of growth and vascularization of soft-tissue cancers called sarcomas. Recently the lab received funding to investigate the genetic causes of cancer including sarcomas in dogs. This lab has also been highly involved in rallying an unprecedented national alliance of veterinarians, basic scientists, and clinicians to form the Canine Hereditary Cancer Consortium (CHCC). The CHCC will integrate genomic studies of dogs with phenotypic and pharmacologic tests to predict therapies for human disease. This strategy leverages the low genetic diversity of pure bred dogs coupled with their predisposition for particular cancers to identify the underlying genetic lesions and biochemical pathways that contribute to these diseases, and then translate these discoveries to humans. Over the course of the last year, members of the CHCC have begun to define the fundamental goals that would characterize its growth with respect to cancer discovery in the coming decade. In the next two years the lab will focus our efforts on unraveling the genetic causes of several cancers, including but not limited to: hemangiosarcoma, osteosarcoma, melanoma, malignant histiocytic sarcoma, and lymphoma. The goals are ambitious but this is a one-time opportunity to make an incredible difference in the diagnosis and treatment of cancer in not only humans but also dogs. Line 4d - All other program service activities The Van Andel Research Institute (VARI) is dedicated to improving human health by determining the molecular basis of disease, utilizing genetics, bio-chemistry, structural and molecular biology, and chemistry. VARI's current focus is on building programs in basic sciences related to improving our understanding of cancer, including research programs in functional genomics, as well as, initial research efforts in neurological disorders, Parkinson's disease, and other devastating diseases. VARI has also made a long-term commitment to the development of programs that facilitate the translations of discoveries into therapeutic strategies for improving human health. VARI has over 30 program service accomplishments because of its varied reearch endeavors. In 2010, VARI researchers identified many disease related findings including potential ways to diagnose and treat several types of cancer. Researchers found a way to reverse resistance to sunitinib, a treatment that is currently the first line of defense against a form of kidney cancer. They also found a protein that may serve as a useful biomarker to predict patients' response to sunitinib treatment. The study of salivary gland cancer led to the discovery that the approved drug rapamycin may have great potential in the treatment of this cancer. A new method was developed to better study the cells that line and protect the prostate in relation to the development of cancer. Using this model, they found that normal cells and cancer cells depend on different factors to survive, which could aid in discovering how to target cancer cells without affecting normal cells when developing treatments. In collaboration with researchers at other organizations, a biomarker that could help in the treatment of patients with an aggressive type of lung cancer was discovered. Researchers identified an enzyme that could help diagnose and treat a form of liver cancer. A method was developed to predict whether pancreatic cysts are benign or are precursors to invasive cancer. Pancreatic cancer is often diagnosed in advanced stages beyond standard treatment options; detecting the cancer early could save many lives. Researchers also found that the protein PEBP1 could be a diagnositic marker for pancreatic cancer.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>PART IV, LINE 32</Identifier>
        <Explanation>VARI NET ASSETS SHOULD BE CONSIDERED ON A CONSOLIDATED BASIS WITH VAN ANDEL INSTITUTE (VAI), VAN ANDEL EDUCATION INSTITUTE, AND THE TRANSLATIONAL GENOMICS RESEARCH INSTITUTE, RELATED PARTIES. ON A CONSOLIDATED BASIS, NET ASSETS ARE $925,926,000 PER AUDITED FINANCIAL STATEMENTS. THE NEGATIVE NET ASSETS AT VARI ARE DUE TO VAI FUNDING EXPENSES ON A CASH BASIS. THEREFORE, ACCRUALS CAUSE NET ASSETS TO BE NEGATIVE.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VII, Section B</Identifier>
        <Explanation>Compensation for Hunt - Owen Ames &amp; Kimball excludes estimated materials and includes estimated labor on Hunt managed sub-contractors.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>form 990, part VII, Section A</Identifier>
        <Explanation>Dr. Jeffrey Trent is not an independent voting member of the board for fiscal year ending November 30, 2010, because he was paid compensation. His compensation through VARI began in January 2010, and therefore, is not included in part VII, section A, column D. Compensation from the Translational Genomics Research Institute (TGEN), a related party beginning December 1, 2009, is included for the period December 1, 2009 through December 31, 2009. During this time period, Dr. Trent spent the majority of his time (51%) on VARI matters with the reminder of such time (approximately 49%) devoted to TGEN matters.</Explanation>
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      <GeneralExplanation>
        <Identifier>form 990, part VII, Section B</Identifier>
        <Explanation>JEFFREY BATTERSHALL IS LISTED AS SECRETARY ON PAGE 7. HE IS CONTRACTED THROUGH THE LAW FIRM WARNER, NORCROSS, &amp; JUDD. ALL PAYMENTS FOR HIS SERVICES ARE PAID DIRECTLY TO WARNER, NORCROSS, &amp; JUDD.</Explanation>
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      <GeneralExplanation>
        <Identifier>FORM 990, PART IX, COLUMN D</Identifier>
        <Explanation>FUNDRAISING EXPENSES AT VARI WERE INCURRED TO SUPPORT THE MISSION OF THE RESEARCH INSTITUTE THROUGH GRANT SOLICITATION AND EXTRAMURAL PROPOSAL PREPARATION.</Explanation>
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      <GeneralExplanation>
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        <Explanation>THE PROCESS FOR SELECTING THE AUDITOR FOR VAN ANDEL RESEARCH INSTITUTE'S FINANCIAL STATEMENTS DID NOT CHANGE DURING 2010.</Explanation>
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