2016-07-21T14:09:24-05:00 2015-12-31 521392008 GELMAN ROSENBERG & FREEDMAN 4550 MONTGOMERY AVE SUITE 650N BETHESDA MD 208142930 990 2015-01-01 133870223 INTERNATIONAL AIDS VACCINE INITIATIVE INC INTE 2128471111 125 BROAD STREET NO 9TH FL NEW YORK NY 10004 LOUIS D SCHWARTZ CFO 2128471111 2016-07-21 1 3019519090 2015 2016-09-27 15:27:22Z MARK FEINBERG 125 BROAD STREET NO 9TH FL NEW YORK NY 10004 78178404 0 X WWW.IAVI.ORG X 1996 DE A GLOBAL INITIATIVE FOR SAFE, EFFECTIVE, ACCESSIBLE, PREVENTIVE HIV VACCINES THROUGHOUT THE WORLD. 12 10 157 10 0 0 50593210 71447864 511142 530970 775037 -88960 587195 505075 52466584 72394949 18651685 19432361 0 0 21912809 23742980 0 0 2438823 19424498 24515090 59988992 67690431 -7522408 4704518 92681919 85094617 39972128 28190268 52709791 56904349 X INTERNATIONAL AIDS VACCINE INITIATIVE (IAVI) IS A GLOBAL INITIATIVE DEDICATED TO ENSURE THE DEVELOPMENT OF SAFE, EFFECTIVE, ACCESSIBLE, PREVENTIVE HIV VACCINES FOR USE THROUGHOUT THE WORLD. 0 0 51477818 17250194 530970 RESEARCH AND DEVELOPMENT - IMPLEMENTING A FOCUSED AND NIMBLE RESEARCH AND DEVELOPMENT PROGRAM THAT CATALYZES INNOVATION AND ACTION BY MULTIPLE STAKEHOLDERS AND HELPS DRIVE THE FIELD. IAVI'S R&D TEAM DESIGNS AND DEVELOPS HIV VACCINE CANDIDATES, AND CONDUCTS VACCINE TRIALS AND RELATED EPIDEMIOLOGICAL RESEARCH, IN PARTNERSHIP WITH MORE THAN 50 ACADEMIC, BIOTECHNOLOGY, PHARMACEUTICAL AND GOVERNMENTAL INSTITUTIONS.IAVI R&D PRIORITIZES TWO PRIMARY APPROACHES TO PREVENTING HIV INFECTION: ENGAGING THE IMMUNE SYSTEM TO BLOCK INFECTION, AND TRAINING IT TO RECOGNIZE AND DESTROY CELLS ALREADY INFECTED BY HIV. HIV VACCINE CANDIDATES ARE PUT THROUGH A RIGOROUS AND LENGTHY PROCESS OF CLINICAL EVALUATION TO ESTABLISH THEIR SAFETY AND EFFICACY.IAVI AND ITS PARTNERS SUBSCRIBE TO THE HIGHEST SCIENTIFIC AND ETHICAL STANDARDS FOR CONDUCTING TRIALS OF HIV VACCINE CANDIDATES, ONE THAT EMPHASIZES PROTECTING THE RIGHTS, WELL-BEING AND DIGNITY OF TRIAL VOLUNTEERS. IAVI AND ITS PARTNERS HAVE SO FAR DEVELOPED 32 HIV VACCINE AND PREVENTION CANDIDATES, ADVANCING 26 INTO EARLY-STAGE CLINICAL TRIALS, INCLUDING THE FIRST HIV VACCINE TRIALS IN KENYA, INDIA, GERMANY, ZAMBIA AND RWANDA. THE TEAM HAS CONDUCTED 21 EPIDEMIOLOGICAL STUDIES, AND PROVIDED VOLUNTARY TESTING AND COUNSELING TO MORE THAN 500,000 INDIVIDUALS IN AFRICA OVER THIS 15 YEAR TIME PERIOD.IAVI ALSO HAS LAUNCHED RESEARCH CONSORTIA TO ADDRESS THE MAJOR SCIENTIFIC PROBLEMS OF HIV VACCINE DEVELOPMENT AND BOOST THE NUMBER AND QUALITY OF NOVEL VACCINE CANDIDATES EVALUATED IN CLINICAL TRIALS. A MAJOR PORTION OF THE VACCINE RESEARCH THAT IAVI SUPPORTS IS CONDUCTED IN DEVELOPING COUNTRIES, WHERE 95% OF ALL NEW HIV INFECTIONS OCCUR. IAVI PRIORITIZES BUILDING TECHNICAL AND SCIENTIFIC CAPACITY IN THESE COUNTRIES. 6976496 2182167 ADVOCACY, POLICY AND COMMUNICATIONS - ENSURING SUPPORTIVE NATIONAL, REGIONAL AND GLOBAL POLITICAL, ECONOMIC AND SOCIETAL ENVIRONMENTS THAT DRIVE THE FASTEST POSSIBLE DEVELOPMENT OF AN AIDS VACCINE THAT WILL BE EFFECTIVE FOR AND ACCESSIBLE TO THE PEOPLE MOST IN NEED, AS A CRITICAL ELEMENT OF A COMPREHENSIVE RESPONSE TO END AIDS. WORK WITH ADVOCATES, RESEARCHERS, ACTIVISTS AND REPRESENTATIVES OF THE COMMUNITIES HARDEST HIT BY HIV/AIDS TO RAISE AWARENESS AS WELL AS STRENGTHEN LOCAL ADVOCACY CAPACITY AND RESEARCH PREPAREDNESS. 58454314 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 1 1 1 0 0 0 0 0 1 0 1 0 0 0 0 0 0 1 1 0 0 0 0 1 1 1 1 0 0 1 X 84 0 1 157 1 0 1 IN KE SF UK 0 0 0 0 0 0 0 0 X 12 10 0 0 0 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AL AK AR CA CT FL GA HI IL KS KY MA MI MN MS NH NJ NC OK OR PA RI SC TN UT VA WV WI MD NM NY X X PATRICK MOUTON 2128471137 125 BROAD STREET NO 9TH FL NEW YORK NY 10004 X ALEX GODWIN COUTINHO BOARD CHAIR 2.00 X X 0 0 0 ANNE M VANLENT TREASURER 2.00 X X 0 0 0 ADEL AF MAHMOUD BOARD MEMBER 1.00 X 0 0 0 PURNIMA MANE BOARD MEMBER 1.00 X 0 0 0 MARIJKE WIJNROKS BOARD MEMBER 1.00 X 0 0 0 HELEN REES BOARD MEMBER (UNTIL 3/18/15) 1.00 X 0 0 0 MARY C TYDINGS BOARD MEMBER 1.00 X 0 0 0 MONCEF SLAOUI BOARD MEMBER 1.00 X 0 0 0 LORD FOWLER BOARD MEMBER 1.00 X 0 0 0 ERIC PAUL GOOSBY BOARD MEMBER 1.00 X 0 0 0 FRANCINE NTOUMI BOARD MEMBER (BEGAN 6/9/15) 1.00 X 0 0 0 ROBIN WEISS SEE SCH O BOARD MEMBER 1.00 X 32400 0 0 MARGARET MCGLYNN PRESIDENT/CEO (UNTIL 9/8/15) 35.00 X X 370713 0 42359 MARK FEINBERG PRESIDENT/CEO (BEGAN 9/8/15) 35.00 X X 170714 0 1742 LABEEB ABBOUD SECRETARY/SR VP, GENERAL COUNSEL 35.00 X 352039 0 50793 LOUIS SCHWARTZ CHIEF FINANCIAL OFFICER 35.00 X 303964 0 50793 WAYNE KOFF CHIEF SCIENTIFIC OFFICER/SR VP R&D 35.00 X 434601 0 59006 THOMAS HASSELL V.P. VACCINE DEVELOPMENT R&D 35.00 X 348872 0 50793 CHRISTOPHER PARKS EXEC DIR., VIRAL VACCINES 35.00 X 289644 0 49740 FRANCES PRIDDY EXEC DIR., CHIEF MEDICAL OFFICER 35.00 X 283966 0 28200 ANTHONY MUSYOKA V.P. HUMAN RESOURCES 35.00 X 286980 0 50793 2873893 0 384219 74 0 1 0 EMMES CORPORATION 401 N WASHINGTON STREET ROCKVILLE MD 20850 CLINICAL RESEARCH STUDIES 857300 AUSTRALIAN BIOLOGICS PTY LTD PO BOX 587 CRAIGIEBURN VICTORIA AS 3064 CLINICAL RESEARCH STUDIES 478853 VEDDER PRICE PC 1633 BROADWAY 47TH FLOOR NEW YORK NY 10019 LEGAL SERVICES 292740 KEMPER COST MANAGEMENT INC 3300 S LAKESIDE DR OKLAHOMA CITY OK 73179 EQUIPMENT MAINT. SERVICES 261313 SSI INC PO BOX 98991 CHICACO IL 60693 RECRUITMENT/RESEARCH FOR NEW CEO 180341 14 51093882 20353982 71447864 INTEREST ON LEVERAGE LOAN 900099 530970 530970 530970 694495 694495 5000000 5076509 706946 -76509 -706946 -783455 -783455 MISCELLANEOUS 900099 505075 505075 505075 72394949 530970 0 416115 4663024 4663024 14769337 14769337 1375518 230184 1051009 94325 18133989 13819448 2993264 1321277 1330086 1013812 218584 97690 1700130 1271444 304702 123984 1203257 871542 244185 87530 275884 262592 13292 104000 104000 205000 205000 38128 38128 1424555 920107 471905 32543 280616 204030 58750 17836 761147 554955 165132 41060 3023944 2409297 485919 128728 1567380 1363087 160083 44210 817335 684369 68083 64883 2043655 1820444 223211 286379 204595 80157 1627 RESEARCH&CLINICAL SVCS. 9333454 9214687 16869 101898 LAB SUPPLIES/EQUIPMENT 3612688 3612688 EQUIPMENT RENTAL/MAINT. 498196 449889 38108 10199 SUBSCRIPTIONS & PUBS. 133472 84103 19122 30247 109257 30680 56083 22494 67690431 58454314 6797294 2438823 15632954 15758074 10064544 25743098 143828 269058 12848129 296848 428326 45454493 34914828 13133017 10539665 36370760 31761648 4191839 594748 92681919 85094617 5236158 3994765 2283464 4692804 11721720 16101552 17721038 444708 3009748 2956439 39972128 28190268 X 41929917 35628942 10779874 21275407 52709791 56904349 92681919 85094617 X 4704518 -237205 -272755 X 0 1 X 1 1 1 X 58170600 59232675 63996178 50593210 71447864 303440527 58170600 59232675 63996178 50593210 71447864 303440527 38199172 265241355 1508589 1772736 1225832 775037 694495 5976689 918646 373183 1030216 587195 505075 3414315 312831531 1042112 0.84790 0.88520 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER INCOME - 2011 AMOUNT: $ 7,054. 2012 AMOUNT: $ 41,887. 2013 AMOUNT: $ 209,558. 2014 AMOUNT: $ 70,410. 2015 AMOUNT: $ 146,897. COLLABORATIVE AGREEMENT - 2011 AMOUNT: $ 250,000. 2012 AMOUNT: $ 250,000. 2013 AMOUNT: $ 250,000. 2014 AMOUNT: $ 250,000. WRITE OFF DEFERRED RENT - 2011 AMOUNT: $ 661,592. 2013 AMOUNT: $ 135,063. INNOVATION FUND RETURNED - 2013 AMOUNT: $ 353,000. LOAN FORGIVENESS - 2012 AMOUNT: $ 81,296. 2013 AMOUNT: $ 82,595. 2014 AMOUNT: $ 77,932. 2015 AMOUNT: $ 74,118. WRITE OFF PROVISION FOR RISK - 2014 AMOUNT: $ 188,853. 2015 AMOUNT: $ 284,060. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 205000 205000 67485431 67690431 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 180000 180000 150000 205000 715000 250000 250000 250000 250000 1000000 1500000 19883853 10241833 9642020 25570640 24672995 897645 10539665 DEFERRED RENT PAYABLE 2573656 DEFERRED COMPENSATION PAYABLE 382783 2956439 X 74100530 -237205 726210 2800510 3289515 70811015 38128 1545806 1583934 72394949 68381418 726210 1548711 2274921 66106497 38128 1545806 1583934 67690431 PART X, LINE 2: FOR THE YEAR ENDED DECEMBER 31, 2015, MANAGEMENT OF IAVI HAS DOCUMENTED ITS CONSIDERATION OF FASB ASC 740-10, INCOME TAXES, THAT PROVIDES GUIDANCE FOR REPORTING UNCERTAINTY IN INCOME TAXES AND HAS DETERMINED THAT NO MATERIAL UNCERTAIN TAX POSITIONS QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. PART XI, LINE 2D - OTHER ADJUSTMENTS: REVENUE OF STICHTING INTERNATIONAL AIDS VACCINE INITIATIVE 2,197,079. INCLUDED IN CONSOLIDATED AUDIT REPORT BUT EXCLUDED FOR IAVI FORM 990 REPORTING PURPOSES. REVENUE OF IAVI HOLDINGS, LLC, INCLUDED IN CONSOLIDATED 321,319. AUDIT REPORT BUT EXCLUDED FOR FORM 990 REPORTING PURPOSES. REVENUE OF IAVI INDIA, INCLUDED IN CONSOLIDATED AUDIT 282,112. REPORT BUT EXCLUDED FOR FORM 990 REPORTING PURPOSES. PART XI, LINE 4B - OTHER ADJUSTMENTS: INTER-COMPANY REVENUE, ELIMINATED IN CONSOLIDATED AUDIT 1,545,806. REPORT BUT INCLUDED IN IAVI, INC. FORM 990. PART XII, LINE 2D - OTHER ADJUSTMENTS: EXPENSES OF STICHTING INTERNATIONAL AIDS VACCINE INITIATIVE 1,182,964. INCLUDED IN CONSOLIDATED AUDIT REPORT BUT EXCLUDED FOR IAVI FORM 990 REPORTING PURPOSES. EXPENSES OF IAVI HOLDINGS, LLC, INCLUDED IN CONSOLIDATED 321,319. AUDIT REPORT BUT EXCLUDED FOR FORM 990 REPORTING PURPOSES. EXPENSES OF IAVI INDIA, INCLUDED IN CONSOLIDATED AUDIT 44,428. REPORT BUT EXCLUDED FOR FORM 990 REPORTING PURPOSES. PART XII, LINE 4B - OTHER ADJUSTMENTS: INTER-COMPANY EXPENSES, ELIMINATED IN CONSOLIDATED AUDIT 1,545,806. REPORT BUT INCLUDED IN IAVI, INC. FORM 990. 1 EAST ASIA AND THE PACIFIC 0 0 GRANTS TO RECIPIENTS LOCATED IN REGION -64201 EUROPE 1 4 GRANTS TO RECIPIENTS LOCATED IN REGION 6999107 SOUTH ASIA 0 0 GRANTS TO RECIPIENTS LOCATED IN REGION 377966 SUB-SAHARAN AFRICA 0 0 GRANTS TO RECIPIENTS LOCATED IN REGION 7456465 SOUTH ASIA 1 9 PROGRAM SERVICE ACTIVITIES RESEARCH/ADVOCACY/POLICY 1009402 SUB-SAHARAN AFRICA 2 20 PROGRAM SERVICE ACTIVITIES RESEARCH/ADVOCACY/POLICY 2712588 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICE ACTIVITIES RESEARCH/ADVOCACY/POLICY 434776 EUROPE 0 0 PROGRAM SERVICE ACTIVITIES RESEARCH/ADVOCACY/POLICY 1420299 NORTH AMERICA 0 0 PROGRAM SERVICE ACTIVITIES RESEARCH/ADVOCACY/POLICY 23707 4 33 0 0 4 33 20346402 23707 20370109 EAST ASIA AND THE PACIFIC ADVOCACY, EDUCATION, POLICY/ACCESS 9967 WIRE TRANSFER EUROPE RESEARCH & DEVELOPMENT 8907 WIRE TRANSFER EUROPE RESEARCH & DEVELOPMENT 150052 WIRE TRANSFER EUROPE RESEARCH & DEVELOPMENT 173205 WIRE TRANSFER EUROPE RESEARCH & DEVELOPMENT 1101611 WIRE TRANSFER EUROPE ADVOCACY, EDUCATION, POLICY/ACCESS 1224487 WIRE TRANSFER EUROPE RESEARCH & DEVELOPMENT 4340845 WIRE TRANSFER SOUTH ASIA RESEARCH & DEVELOPMENT 30000 WIRE TRANSFER SOUTH ASIA RESEARCH & DEVELOPMENT 284264 WIRE TRANSFER SOUTH ASIA RESEARCH & DEVELOPMENT 63702 WIRE TRANSFER SOUTH ASIA ADVOCACY, EDUCATION, POLICY/ACCESS 30000 WIRE TRANSFER SUB-SAHARAN AFRICA RESEARCH & DEVELOPMENT 383719 WIRE TRANSFER SUB-SAHARAN AFRICA RESEARCH & DEVELOPMENT 412204 WIRE TRANSFER SUB-SAHARAN AFRICA RESEARCH & DEVELOPMENT 893186 WIRE TRANSFER SUB-SAHARAN AFRICA RESEARCH & DEVELOPMENT 930819 WIRE TRANSFER SUB-SAHARAN AFRICA RESEARCH & DEVELOPMENT 1120190 WIRE TRANSFER SUB-SAHARAN AFRICA RESEARCH & DEVELOPMENT 1703582 WIRE TRANSFER SUB-SAHARAN AFRICA RESEARCH & DEVELOPMENT 1916096 WIRE TRANSFER SUB-SAHARAN AFRICA ADVOCACY, EDUCATION, POLICY/ACCESS 28869 WIRE TRANSFER SUB-SAHARAN AFRICA ADVOCACY, EDUCATION, POLICY/ACCESS 12800 WIRE TRANSFER SUB-SAHARAN AFRICA ADVOCACY, EDUCATION, POLICY/ACCESS 25000 WIRE TRANSFER EAST ASIA AND THE PACIFIC GRANT REFUND -74168 WIRE TRANSFER 19 3 1 0 0 0 0 0 PART I, LINE 2: THE ORGANIZATION HAS A COMPLIANCE UNIT WITH A COMPLIANCE OFFICER LOCATED IN EAST AFRICA THAT MONITORS THE ADHERENCE OF SUB-GRANTEES TO THE CONTRACT AND DONOR TERMS WHICH INCLUDES ROUTINE COMPLIANCE AND SUBSTANTIVE AUDITS, ROUTINE INTERNAL CONTROL QUESTIONNAIRES, AND IN-DEPTH REVIEW OF QUARTERLY REPORTS OF SUB-GRANTEES ON A REGULAR BASIS. 1 EMORY UNIVERSITY 1599 CLIFTON ROAD ATLANTA GA 30332 580566256 501(C)(3) 1276216 PROGRAM SUPPORT THE SCRIPPS RESEARCH INSTITUTE 10550 NORTH TORREY PINES ROAD LA JOLLA CA 92037 330435954 501(C)(3) 1263635 PROGRAM SUPPORT AVAC GLOBAL ADVOCACY FOR HIV PREVENTION 9000 ROCKVILLE PIKE NEW YORK NY 10011 943240841 501(C)(3) 660896 PROGRAM SUPPORT OREGON HEALTH AND SCIENCE UNIVERSITY 3181 SW SAM JACKSON PARK RD PORTLAND OR 972393098 237083114 501(C)(3) 517951 PROGRAM SUPPORT VETERANS MEDICAL RESEARCH FOUNDATION 3350 LA JOLLA VILLAGE DRIVE 151A SAN DIEGO CA 92161 330189397 501(C)(3) 391267 PROGRAM SUPPORT NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES OFFICE OF TECHNOLOGY DEVELOPMENT ATTN DIRECTOR 6610 ROCKLEDGE DRIVE BETHESDA CA 208926606 530196960 GOVERNMENT 200000 PROGRAM SUPPORT LA JOLLA INSTITUTE FOR ALLERGY & IMMUNOLOGY 9420 ATHENA CIRCLE LA JOLLA CA 92037 330328688 501(C)(3) 119006 PROGRAM SUPPORT UNIVERSITY OF CALIFORNIA SAN FRANCISCO 3333 CALIFORNIA STREET SUITE 315 SAN FRANCISCO CA 94158 946036493 501(C)(3) 115005 PROGRAM SUPPORT UNIVERSITY OF CALIFORNIA SAN DIEGO 9500 GILMAN DRIVE 0934 LA JOLLA CA 92093 956006144 501(C)(3) 94623 PROGRAM SUPPORT VIRGINIA COMMONWEALTH UNIVERSITY DEPT OF PEDIATRICS OFFICE OF SPONSORED PROGRAMS RED TEAM 800 E LEIGH STREET SUITE 113 RICHMOND VA 232980568 546001758 501(C)(3) 21484 PROGRAM SUPPORT 10 0 PART I, LINE 2: THE ORGANIZATION HAS A COMPLIANCE UNIT THAT MONITORS THE ADHERENCE OF SUB-GRANTEES TO THE CONTRACT TERMS WHICH INCLUDES SUBSTANTIVE AUDITS, ROUTINE INTERNAL CONTROL QUESTIONNAIRES, AND IN-DEPTH REVIEW OF QUARTERLY REPORTS OF SUB-GRANTEES ON A REGULAR BASIS. X X X X 0 0 0 0 0 0 0 1 0 MARGARET MCGLYNN PRESIDENT/CEO (UNTIL 9/8/15) 320864 0 46000 0 3849 0 22307 0 20052 0 413072 0 0 0 MARK FEINBERG PRESIDENT/CEO (BEGAN 9/8/15) 139180 0 0 0 31534 0 0 0 1742 0 172456 0 0 0 LABEEB ABBOUD SECRETARY/SR VP, GENERAL COUNSEL 303628 0 30135 0 18276 0 29000 0 21793 0 402832 0 0 0 LOUIS SCHWARTZ CHIEF FINANCIAL OFFICER 276925 0 25143 0 1896 0 29000 0 21793 0 354757 0 0 0 WAYNE KOFF CHIEF SCIENTIFIC OFFICER/SR VP R&D 397930 0 34481 0 2190 0 29000 0 30006 0 493607 0 0 0 THOMAS HASSELL V.P. VACCINE DEVELOPMENT R&D 321204 0 25892 0 1776 0 29000 0 21793 0 399665 0 0 0 CHRISTOPHER PARKS EXEC DIR., VIRAL VACCINES 268833 0 19035 0 1776 0 29000 0 20740 0 339384 0 0 0 FRANCES PRIDDY EXEC DIR., CHIEF MEDICAL OFFICER 263738 0 18956 0 1272 0 28200 0 0 0 312166 0 0 0 ANTHONY MUSYOKA V.P. HUMAN RESOURCES 261017 0 24691 0 1272 0 29000 0 21793 0 337773 0 0 0 PART I, LINE 7 BONUS COMPENSATION HAS BEEN REFLECTED IN PART II, COLUMN (B)(II). PART II, COLUMN (B)(III): MARK FEINBERG $31,534 - INCLUDES $20,000 FOR RELOCATION REIMBURSEMENT AND $9,800 IN RENTAL ASSISTANCE LABEEB ABBOUD $18,276 - INCLUDES $16,500 457(B) CONTRIBUTION KRISTEN KRESGE KRISTEN KRESGE IS MARRIED TO LABEEB ABBOUD, IAVI INC. GENERAL COUNSEL 23300 IAVI INC. PAID KRISTEN KRESGE FOR CONSULTING SERVICES AS MANAGING EDITOR FOR IAVI REPORT. 0 NOODLE FOX MEDIA NOODLE FOX MEDIA IS OWNED BY KRISTEN KRESGE, WIFE OF LABEEB ABBOUD 96342 IAVI INC. PAID NOODLE FOX MEDIA FOR CONSULTING SERVICES AS MANAGING EDITOR FOR IAVI REPORT. 0 FORM 990, PART VI, SECTION B, LINE 11 THE AUDIT AND FINANCE COMMITTEE REVIEWED AND APPROVED THE FORM 990 IN DETAIL WITH THE CONTROLLER AND CFO. IT WAS THEN SENT TO THE FULL BOARD BEFORE IT WAS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C IAVI HAS A CONFLICT OF INTEREST POLICY WHICH APPLIES TO ALL BOARD AND ADVISORY COMMITTEE MEMBERS, MANAGEMENT, STAFF AND CONSULTANTS. THE POLICY REQUIRES THAT ALL BOARD AND ADVISORY COMMITTEE MEMBERS, STAFF, AND KEY CONSULTANTS, FILE AN ANNUAL DISCLOSURE FORM, INDICATING WHETHER THERE ARE ANY POTENTIAL OR ACTUAL CONFLICTS AS DEFINED UNDER THE POLICY. IN ADDITION, ALL ARE REQUIRED TO DISCLOSE ANY POTENTIAL OR ACTUAL CONFLICTS ON AN ONGOING BASIS. ANNUAL DISCLOSURE FORMS, AS WELL OTHER CONFLICT OF INTEREST DISCLOSURES THAT ARISE DURING THE YEAR, ARE FILED WITH AND REVIEWED BY THE GENERAL COUNSEL. IN ADDITION, THE AUDIT & FINANCE COMMITTEE REVIEWS CONFLICT OF INTEREST DISCLOSURES THAT INVOLVE A DIRECTOR, OFFICER, OR KEY EMPLOYEE. IN EACH CASE, THE REVIEW ENSURES THAT ANY CONFLICT OF INTEREST IS PROPERLY ADDRESSED, MITIGATED, AND/OR MANAGED. CONFLICT OF INTEREST DISCLOSURES ARE SUMMARIZED AND PROVIDED TO THE CHAIR OF THE AUDIT & FINANCE COMMITTEE FOR REVIEW BY THE AUDIT & FINANCE COMMITTEE'S INDEPENDENT DIRECTORS. FORM 990, PART VI, SECTION B, LINE 15 ONCE EVERY TWO YEARS, THE COMPENSATION COMMITTEE OF THE BOARD,COMMISSIONS A COMPENSATION SURVEY OF THE CEO'S COMPENSATION PACKAGE. THE SURVEY COMPARES COMPENSATION PACKAGES OF CEO'S OF ORGANIZATIONS THAT ARE COMPARABLE TO IAVI. THE COMMITTEE REVIEWS THE RESULTS OF THE SURVEY AND RECOMMENDATIONS MADE, DISCUSSES THIS WITH THE BOARD BEFORE PROVIDING SPECIFIC GUIDANCE AND APPROVAL TO IAVI'S MANAGEMENT. THE COMPENSATION COMMITTEE DETERMINES THE APPROPRIATE PACKAGE FOR THE CEO AND THE BOARD CHAIR SHARES THIS INFORMATION WITH HUMAN RESOURCES FOR IMPLEMENTATION. IAVI ENGAGES AN EXTERNAL SPECIALIZED FIRM WITH EXPERTISE TO CONDUCT THE SURVEY AND PROVIDE RECOMMENDATION TO THE COMPENSATION COMMITTEE. THE DELIBERATIONS OF THE COMPENSATION COMMITTEE OF THE BOARD ARE DOCUMENTED IN THE COMPENSATION COMMITTEE MINUTES FOR EACH MEETING OF THE MEMBERS. ALSO THE SAME IS CAPTURED IN THE BOARD MINUTES AS REPORTED OUT BY THE COMPENSATION COMMITTEE CHAIR FOR BOARD DISCUSSIONS AND APPROVAL. THE LAST COMPENSATION REVIEW TOOK PLACE IN DECEMBER 2015. IN CONJUNCTION WITH THE CEO'S COMPENSATION REVIEW, THE COMPENSATION COMMITTEE OF THE BOARD ALSO COMMISSIONS AN EXTERNAL COMPARATIVE COMPENSATION SURVEY OF ORGANIZATIONS SIMILAR TO IAVI, IN WHICH THE PACKAGES OF ALL OTHER OFFICERS AND KEY EMPLOYEES ARE BENCHMARKED AGAINST THE LABOR MARKET TO DETERMINE APPROPRIATENESS OF PAY. THE COMMITTEE REVIEWS THE RESULTS AND RECOMMENDATIONS FROM THIS SURVEY AND PROVIDES MANAGEMENT WITH SPECIFIC GUIDANCE IN ADDRESSING ANY DISPARITIES. USING BENCHMARK JOB CLASSIFICATIONS, ONCE EVERY 2 YEARS IAVI COMMISSIONS A COMPENSATION SURVEY, ACROSS ALL ITS OFFICES TO DETERMINE THE COMPETITIVENESS OF ITS COMPENSATION PROGRAMS AND TO ENABLE THE ORGANIZATION TO CONTINUE TO ATTRACT AND RETAIN THE RIGHT TALENT IN THESE VARIOUS MARKETS. IN MOST CASES THE LOCAL LABOR MARKET IS CONSIDERED AND FOR CERTAIN POSITIONS, REGIONAL MARKETS MUST BE TARGETED. THE RESULTS OF EACH SURVEY ARE REVIEWED WITH THE COMPENSATION COMMITTEE OF THE BOARD, WHICH GIVE MANAGEMENT OVERALL GUIDANCE ON COMPENSATION DIRECTION. BASED ON RECOMMENDATIONS AND GUIDANCE OF THE COMPENSATION COMMITTEE, THE EXECUTIVE OFFICE AND HUMAN RESOURCES COMMUNICATE CHANGES TO ANY AFFECTED EMPLOYEES. ANY COMPENSATION CHANGES ARE DETERMINED BASED ON EXTERNAL COMPETIVENESS RELATIVE INTERNAL VALUE, INDIVIDUAL PERFORMANCE, TEAM DYNAMIC, AND IAVI'S ABILITY TO PAY. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE ON ITS WEBSITE. FORM 990, PART VII, SECTION A: BOARD MEMBER ROBIN WEISS WAS PAID FOR CONSULTING SERVICES FOR CHAIRING SCIENTIFIC ADVISORY COMMITTEE. THESE FEES WERE NOT COMPENSATION FOR HIS ROLE ON THE BOARD OF DIRECTORS. FORM 990, PART XI, LINE 9: FOREIGN EXCHANGE LOSS -614,724. PROVISION FOR FUTURE FOREIGN EXCHANGE LOSSES 350,000. WRITE OFF OF AMOUNT OWED FROM IAVI HOLDINGS, INC. -8,031. IAVI LAB LLC 125 BROAD STREET 9TH FL NEW YORK NY 10004 262031769 LAB RESEARCH DE 0 8764590 IAVI INC STICHTING IAVI HEREGRANCHT 208 1016 BS AMSTERDAM NL RESEARCH SUPPORT NL N/A N/A IAVI INC 1 IAVI INDIA 4 FACTORY ROAD GROUND FLOOR ANSARI NAGAR WEST NEW DELHI-110029 IN RESEARCH SUPPORT IN N/A N/A IAVI INC 1 IAVI HOLDING LLC 125 BROAD STREET 9TH FL NEW YORK NY 10004 262032322 HOLDING COMPANY DE IAVI INC C 321319 1.00000 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 IAVI HOLDING LLC A 321319 ACTUAL IAVI STICHTING B 1224487 ACTUAL IAVI HOLDING LLC D 12848129 ACTUAL