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        <ExplanationTxt>THE FOUNDATION HAS ADOPTED THE PROVISION OF ASC TOPIC 740, INCOME TAXES, RELATING TO THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. THE FOUNDATION FILES INFORMATION RETURNS IN THE U.S. FEDERAL JURISDICTION, AND THE STATE OF ILLINOIS. MANAGEMENT IS NOT AWARE OF ANY UNCERTAIN TAX POSITIONS.</ExplanationTxt>
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        <ExplanationTxt>THE ORGANIZATION'S CONFLICT OF INTEREST POLICY COVERS ALL OF THE ORANIZATION'S DIRECTORS AND SETS FORTH THE PROCEDURES AS FOLLOWS: (1) IN SITUATIONS WHERE A DIRECTOR OR MEMBER OF THE DIRECTOR'S IMMEDIATE FAMILY HOLDS A FIDUCIARY OR LEADING POSITION WITH A POTENTIAL GRANTEE, THAT RELATIONSHIP IS ALWAYS DISCLOSED AND EITHER THE DIRECTOR INVOLVED ABSTAINS FROM VOTING, OR THE MATTER IS DETERMINED WITHOUT CONSIDERING THE VOTE OF THE DIRECTOR. STAFF MEMBERS WHO HOLD A FIDUCIARY OR LEADING POSITION IN A GRANTEE ORGANIZATION OR A MEMBER OF WHOSE IMMEDIATE FAMILY HOLDS SUCH A POSITION MUST ALWAYS DISCLOSE THAT RELATIONSHIP. SUCH ASSOCIATION MUST BE NOTED IN ALL GRANT PRESENTATIONS AND REPORTED IN THE APPROPRIATE BOARD MINUTES. (2) DIRECTORS ALWAYS ABSTAIN FROM VOTING ON MATTERS REGARDING BUSINESS TRANSACTIONS BETWEEN HCLF AND ANY ORGANIZATION IN WHICH THE DIRECTOR OR MEMBER OF THE DIRECTOR'S IMMEDIATE FAMILY HOLDS A FIDUCIARY OR LEADING POSITION OR HAS A SIGNIFICANT FINANCIAL INTEREST. STAFF MEMBERS AND THEIR IMMEDIATE FAMILIES WHO HOLD A FIDUCIARY OR LEADING POSITION OR HAVE A SIGNIFICANT FINANCIAL INTEREST IN ANY ORGANIZATION WHICH HAS OR IS ENTERING INTO A BUSINESS ARRANGEMENT WITH HCLF MUST ALWAYS DISCLOSE THAT RELATIONSHIP. SUCH DISCLOSURE MUST BE RECORDED IN THE APPROPRIATE BOARD MINUTES. SPECIAL CARE IS TAKEN TO PREVENT ABUSE AS THE RESULT OF SUCH ARRANGEMENTS. (3) THE SECRETARY OF HCLF ANNUALLY CIRCULATES A DISCLOSURE FORM FOR DIRECTORS AND STAFF TO LIST ORGANIZATIONS IN WHICH THE DIRECTOR OR STAFF MEMBER OR SPOUSE OR CHILD PLAYS A FIDUCIARY OR LEADING ROLE. IN ADDITION, DIRECTORS AND STAFF WILL LIST THOSE ORGANIZATIONS IN WHICH THEY, A SPOUSE OR CHILD HOLD SIGNIFICANT FINANCIAL INTEREST AND WHICH HAVE A BUSINESS RELATIONSHIP WITH HCLF. ON THE SAME FORM, DIRECTORS AND STAFF ACKNOWLEDGE THAT THEY UNDERSTAND AND ADHERE TO THE HCLF'S CONFLICT OF INTEREST POLICY AND PROCEDURE DIRECTORS AND STAFF WILL INFORM THE SECRETARY OF HCLF OF ANY CHANGES OR NEW RELATIONSHIPS.</ExplanationTxt>
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