2012-08-03T12:22:47-05:00 2011-12-31 521855942 TATE AND TRYON 2021 L STREET NW SUITE 400 WASHINGTON DC 20036 990 2011-01-01 131088150 HEALTHCARE DISTRIBUTION MANAGEMENT ASSOCIATION HEAL 7038850268 901 NORTH GLEBE ROAD NO 1000 ARLINGTON VA 22203 ANN BITTMAN 7037870000 2012-08-03 1 SUBRINA L WOOD P00365899 2022932200 2011 2016-02-24 21:20:13Z JOHN M GRAY 901 NORTH GLEBE ROAD NO 1000 ARLINGTON VA 22203 13210751 0 X WWW.HEALTHCAREDISTRIBUTION.ORG X 1944 VA THE MISSION OF HDMA IS TO SECURE SAFE AND EFFECTIVE DISTRIBUTION OF HEALTHCARE PRODUCTS, CREATE AND EXCHANGE INDUSTRY KNOWLEDGE AFFECTING THE FUTURE OF DISTRIBUTION MANAGEMENT, AND INFLUENCE STANDARDS AND BUSINESS PROCESSES THAT PRODUCE EFFICIENT HEALTHCARE COMMERCE. 30 30 42 220 0 0 10000 0 10698372 11373254 232144 375148 17180 64922 10957696 11813324 325000 775000 0 0 5863907 6289851 0 0 0 4908389 5134817 11097296 12199668 -139600 -386344 19265735 16668091 6373056 4790790 12892679 11877301 X SEE SCHEDULE O: 0 0 GOVERNMENT AFFAIRS: THROUGH ITS GOVERNMENT AFFAIRS INITIATIVES, HDMA ADDRESSES LEGISLATIVE AND REGULATORY ISSUES AT THE FEDERAL AND STATE LEVELS. IT ADVOCATES FOR THE HEALTHCARE DISTRIBUTION INDUSTRY AS WELL AS FOR THE LARGER INTERESTS OF NATIONAL HEALTHCARE. INDUSTRY RELATIONS & EDUCATION: THESE ACTIVITIES FOCUS ON INFORMATION SYSTEMS, OPERATIONAL INTEGRATION AND THE IMPACT OF E-COMMERCE ON THE EFFICIENT DISTRIBUTION OF HEALTHCARE AND THE IMPROVEMENT OF BUSINESS PROCESSES. IN ADDITION, THROUGHOUT THE YEAR PROGRAMS ARE CONDUCTED TO EDUCATE MEMBERS AND OTHER INDUSTRY PARTNERS IN CRITICAL INDUSTRY ISSUES, EMERGING TRENDS, LEGISLATION AND OTHER TOPICS OF INTEREST. THESE PROGRAMS INCLUDE LIVE IN-PERSON SEMINARS AND REMOTELY BROADCAST SEMINARS (WEBINARS). MEETINGS & CONFERENCES: THROUGH ITS MEETINGS, HDMA DISSEMINATES INFORMATION TO MEMBERS, CREATES OPPORTUNITIES FOR MEMBER TRADING PARTNER INTERACTION AND FOSTERS ALLIANCES AND COALITIONS BETWEEN THE HDMA AND ITS CONSTITUENCIES. MEETINGS INCLUDE THE DISTRIBUTION MANAGEMENT CONFERENCE (DMC), THE BUSINESS & LEADERSHIP CONFERENCE (BLC) AND THE ANNUAL BOARD & MEMBERSHIP MEETING (ABMM). AT DMC ATTENDEES ATTEND EDUCATIONAL SESSIONS AND DISCUSS OPERATIONAL ISSUES, INCLUDING MANAGEMENT PROCEDURES, INNOVATION IN TECHNOLOGY AND IMPROVEMENTS IN PRODUCTIVITY AND COST REDUCTION. THE BLC IS ATTENDED BY DISTRIBUTORS, MANUFACTURERS AND SERVICE PROVIDER EXECUTIVES AND SENIOR MANAGERS WHO MANAGE NEW PRODUCT INTRODUCTIONS, THE RESUPPLY PROCESS, CREDIT AND FINANCE, ELECTRONIC COMMERCE, CONTRACT MANAGEMENT, MARKET DEVELOPMENT PROGRAMS, INFORMATION SYSTEMS AND SPECIFIC CUSTOMER SEGMENTS. ATTENDEES MEET IN ONE-ON-ONE SCHEDULED MEETINGS TO DISCUSS STRATEGIC AND OPERATIONAL TRADING PARTNER ISSUES.THE ABMM IS ATTENDED BY KEY EXECUTIVES FROM DISTRIBUTOR AND MANUFACTURER COMPANIES. IN ADDITION TO CONDUCTING EXECUTIVE COMMITTEE AND BOARD OF DIRECTOR BUSINESS, ATTENDEES DISCUSS BUSINESS, STRATEGIC PLANNING AND OPERATIONAL ISSUES WITH THEIR TRADING PARTNERS AND ATTEND HIGH LEVEL EDUCATIONAL AND INFORMATION SESSIONS. EDUCATIONAL PROGRAMS -- PERIODICALLY THROUGHOUT THE YEAR PROGRAMS ARE CONDUCTED TO EDUCATE MEMBERS AND OTHER INDUSTRY PARTNERS IN SUCH AREAS AS CRITICAL INDUSTRY ISSUES, EMERGING TRENDS, LEGISLATION, AND MANY OTHER TOPICS OF INTEREST. THESE PROGRAMS INCLUDE LIVE IN-PERSON SEMINARS AND REMOTELY BROADCAST SEMINARS (WEBINARS). 0 0 0 1 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 47 0 1 42 1 0 0 0 0 1 1 0 X 30 30 0 0 1 0 1 1 0 1 1 0 0 0 1 1 1 1 1 1 1 0 VA X THE ASSOCIATION 7037870000 901 NORTH GLEBE ROAD SUITE 1000 ARLINGTON VA 22203 DAVID MOODY JR 1.00 X X 0 0 0 DAVID NEU 1.00 X X 0 0 0 DAWN BOYTER 0.50 X 0 0 0 MARIA BURNS 0.50 X 0 0 0 LARRY DOUD 0.50 X 0 0 0 GREGORY DREW 0.50 X 0 0 0 GREG DUCHE 0.50 X 0 0 0 DENNIS ENGEL 0.50 X 0 0 0 LOUIS FERRARO 0.50 X 0 0 0 RICHARD GATON 0.50 X 0 0 0 TERRANCE HAAS 0.50 X 0 0 0 GAYLE JOHNSTON 0.50 X 0 0 0 SONIA JUSINO DE THUNA 0.50 X 0 0 0 SAM LAZICH 0.50 X 0 0 0 ALBERT PAONESSA 0.50 X 0 0 0 GARY PRESTER 0.50 X 0 0 0 ANTHONY RATTINI 0.50 X 0 0 0 JOHN RAY 0.50 X 0 0 0 GEORGE GK RICHARDS 0.50 X 0 0 0 RAUL RODRIGUEZ-FONT 0.50 X 0 0 0 CHRISTOPHER SCHOEN 0.50 X 0 0 0 WALTER SHIKANY 0.50 X 0 0 0 JOSEPH SHONEFF 0.50 X 0 0 0 NICK SMOCK 0.50 X 0 0 0 ALBERT THOMAS 0.50 X 0 0 0 KENNETH COUCH 1.00 X X 0 0 0 PAUL JULIAN 1.00 X X 0 0 0 MICHAEL KAUFMANN 1.00 X X 0 0 0 TED SCHERR 1.00 X X 0 0 0 DALE SMITH 1.00 X X 0 0 0 JOHN GRAY 40.00 X 817117 7889 77214 PATRICK KELLY 40.00 X 284961 0 46337 ANN BITTMAN 40.00 X 313766 13073 61764 PERRY FRI 40.00 X 321288 0 58836 KAREN RIBLER 40.00 X 0 284246 40457 ELIZABETH GALLENAGH 40.00 X 206818 0 30760 EDWARD PEZZULLO 40.00 X 171317 0 39169 ANITA DUCCA 40.00 X 169321 0 28010 BROOKE NAYLOR 40.00 X 146846 0 42711 KRISTEN FREITAS 40.00 X 123388 0 40571 2554822 305208 465829 18 0 1 0 OLSSON FRANK AND WEEDA PC 1400 SIXTEENTH STREET NW WASHINGTON DC 20036 LEGAL SERVICES 336407 TARPLIN DOWNS & YOUNG LLC 1212 NEW YORK AVENUE NW SUITE 1050 WASHINGTON DC 20005 FEDERAL LOBBYING 240000 KING & SPALDING PO BOX 116133 ATLANTA GA 30368 FEDERAL LOBBYING 195000 BROWN RUDNICK ONE FINANCIAL CENTER BOSTON MA 02111 FEDERAL LOBBYING 165000 ARENT FOX PO BOX 644672 PITTSBURGH PA 15264 LEGAL SERVICES 102730 5 MEMBERSHIP DUES 900099 7601116 7601116 MEETINGS & ACTIVITIES 900099 3757558 3261308 496250 PUBLICATIONS 541800 14580 14580 11373254 356589 356589 4683 4683 1415986 1397427 18559 18559 18559 MISCELLANEOUS 900099 60239 60239 60239 11813324 10937243 0 876081 775000 2326951 2815243 274196 589343 284118 468717 25181 361031 53961 803293 2900 297858 92813 578146 370021 1491377 146824 30102 GOVERNMENT AND PROFESSI 129581 CREDIT CARD FEES 100821 DUES & MEMBERSHIPS 88181 TRAINING 53338 40672 12199668 300 74 5388106 3491231 27722 29433 1241610 1374455 2326036 1844093 524782 481943 11965352 11266767 117863 24188 19265735 16668091 671545 630998 4537807 2834107 1163704 1325685 6373056 4790790 X 12892679 11877301 12892679 11877301 19265735 16668091 X -386344 -629034 X X 0 1 1 X 0 1 HEALTHCARE DISTRIBUTION MGT PAC 901 NORTH GLEBE RD ARLINGTON VA 22203 541559237 0 23254 0 0 1 7601116 1841518 -416299 1425219 1444212 -18993 ORGANIZATIONS DIRECT AND INDIRECT POLITICAL CAMPAIGN ACTIVITIES: PART I-A, LINE 1: INDIRECT POLITICAL CAMPAIGN ACTIVITIES ARE MADE THROUGH THE HEALTHCARE DISTRIBUTION MANAGEMENT ASSOCIATION POLITICAL ACTION COMMITTEE (HDMA PAC) WHICH WAS ORGANIZED AS A VOLUNTARY, NON-PROFIT, UNINCORPORATED ASSOCIATION TO FURTHER THE INTERESTS OF HDMA AND THE DRUG DISTRIBUTION INDUSTRY AND TO PROMOTE GOOD CITIZENSHIP THROUGH PERSONAL AND FINANCIAL PARTICIPATION IN THE ELECTIVE PROCESS. 816026 479532 336494 1510010 1364561 145449 481943 DEFERRED COMPENSATION 1064976 DEFERRED RENTAL INCENTIVE 258834 DUE TO RELATED 1875 1325685 11813324 12199668 -386344 -629034 -629034 -1015378 11184290 -629034 -629034 11813324 0 11813324 12199668 0 12199668 0 12199668 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: MANAGEMENT DID NOT IDENTIFY ANY UNCERTAIN INCOME TAX POSITIONS. AT A MINIMUM, THE ORGANIZATION'S INCOME TAX RETURNS FOR 2008 THROUGH 2011 ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY WERE FILED. 1 CENTER FOR HEALTHCARE SUPPLY CHAIN RESEARCH 901 NORTH GLEGE ARLINGTON VA 22203 521225130 501(C)(3) 775000 GENERAL SUPPORT 1 0 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: HDMA MONITORS THE USE OF GRANT FUNDS MADE THROUGH REPORTS FROM THE CENTER'S EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER. X X 1 1 X X X X X 0 1 0 JOHN GRAY 693294 4602 104407 1055 19416 2232 40590 410 35852 362 893559 8661 0 0 PATRICK KELLY 277646 0 0 0 7315 0 21588 0 24749 0 331298 0 0 0 ANN BITTMAN 265756 11073 40320 1680 7690 320 28800 1200 30493 1271 373059 15544 0 0 PERRY FRI 275345 0 38000 0 7943 0 30000 0 28836 0 380124 0 0 0 KAREN RIBLER 0 253924 0 28000 0 2322 0 30000 0 10457 0 324703 0 0 ELIZABETH GALLENAGH 196355 0 10000 0 463 0 20703 0 10057 0 237578 0 0 0 EDWARD PEZZULLO 160539 0 10000 0 778 0 17600 0 21569 0 210486 0 0 0 ANITA DUCCA 162866 0 5000 0 1455 0 17100 0 10910 0 197331 0 0 0 BROOKE NAYLOR 136410 0 10000 0 436 0 15600 0 27111 0 189557 0 0 0 KRISTEN FREITAS 118164 0 5000 0 224 0 13450 0 27121 0 163959 0 0 0 PART I, LINE 1A THE FOLLOWING ITEMS WERE TREATED AS TAXABLE INCOME TO THE RECIPIENT: HDMA PURCHASED AN AIRLINE TICKET FOR JOHN GRAY'S WIFE TO TRAVEL TO AN INDUSTRY EVENT WHERE OTHER WIVES WERE IN ATTENDENCE. HDMA PAYS FOR JOHN GRAY'S CLUB MEMBERSHIP. THE TAXABLE AMOUNT IS INCLUDED IN HIS W-2. PART I, LINE 4B PART I, LINE 4B: CONTRIBUTIONS WERE MADE TO A 457(F) PLAN ON BEHALF OF: JOHN GRAY $201,632 BRIEF DESCRIPTION OF THE ORGANIZATION'S MISSION PART III, LINE 1 THE MISSION OF HDMA IS TO SECURE SAFE AND EFFECTIVE DISTRIBUTION OF HEALTHCARE PRODUCTS, CREATE AND EXCHANGE INDUSTRY KNOWLEDGE AFFECTING THE FUTURE OF DISTRIBUTION MANAGEMENT, AND INFLUENCE STANDARDS AND BUSINESS PROCESSES THAT PRODUCE EFFICIENT HEALTHCARE COMMERCE. FORM 990, PART VI, SECTION A, LINE 4 THE HDMA BYLAWS WERE AMENDED DURING 2011. THE CHANGES INCLUDED LIMITING ACTIVE DISTRIBUTOR MEMBERSHIP TO DISTRIBUTORS LOCATED IN THE U.S. OR ITS POSSESSIONS AND WHOSE PRIMARY BUSINESS IS ALSO LOCATED IN THE U.S. OR ITS POSSESSIONS; PREVENTING A DISTRIBUTOR THAT IS NOT ELIGIBLE FOR ACTIVE MEMBERSHIP FROM BEING ELIGIBLE TO JOIN AS AN ALLIED MEMBER AND ALLOWING THE OFFICES OF SECRETARY AND TREASURER TO BE HELD EITHER BY ONE OR TWO INDIVIDUALS. FORM 990, PART VI, SECTION A, LINE 6 MEMBERSHIP SECTION 1. CLASSES OF MEMBERS. (A) ACTIVE MEMBERS. THE ACTIVE MEMBERSHIP OF THE ASSOCIATION CONSISTS OF FULL-SERVICE HEALTHCARE DISTRIBUTORS. TO BE ELIGIBLE FOR ACTIVE MEMBERSHIP, AN INDIVIDUAL OR BUSINESS ENTITY SHALL MEET ALL OF THE FOLLOWING CRITERIA: 1. IT MUST (I) SELL PREDOMINANTLY TO INDIVIDUALS AND BUSINESS ENTITIES THAT ARE PHARMACIES OR HEALTHCARE PROVIDERS NOT UNDER COMMON DIRECT OR INDIRECT OWNERSHIP WITH THE DISTRIBUTOR; AND (II) MAINTAIN AND OWN ADEQUATE LOCAL INVENTORIES CONSISTING PRIMARILY OF DRUG AND HEALTH-RELATED ITEMS PREDOMINANTLY PURCHASED DIRECTLY FROM MANUFACTURERS. 2. IT MUST OFFER CREDIT TO CUSTOMERS WHOSE FINANCIAL CONDITIONS WARRANT THE EXTENSION OF CREDIT. 3. IT MUST OFFER ON-GOING REGULAR SALES, CUSTOMER SERVICE, AND OTHER VALUE-ADDED SERVICES CUSTOMARILY OFFERED BY FULL-SERVICE HEALTHCARE DISTRIBUTORS. 4. IT MUST PROVIDE REASONABLE AND RELIABLE DELIVERY SERVICE. 5. ITS PRIMARY BUSINESS MUST BE LOCATED IN THE UNITED STATES. 6. IT MUST COMPLY WITH FEDERAL, STATE, AND LOCAL LAWS AND REGULATIONS OR, AS APPLICABLE, THE LAWS AND REGULATIONS OF THE UNITED STATES, AND MUST DEMONSTRATE THAT IT HAS RIGOROUS COMPLIANCE PROGRAMS IN PLACE, INCLUDING BEST PRACTICES TO ENSURE THE SAFETY AND SECURITY OF DRUG PRODUCTS. THIS INCLUDES THE REQUIREMENT THAT A DISTRIBUTOR LOCATED IN THE UNITED STATES OR ITS TERRITORIES HOLDS A VALID LICENSE UNDER THE PRESCRIPTION DRUG MARKETING ACT AND, IF APPROPRIATE, REGISTRATION WITH THE DRUG ENFORCEMENT ADMINISTRATION UNDER THE CONTROLLED SUBSTANCES ACT. 7. IT MUST PROMOTE THE OBJECTIVES OF THE ASSOCIATION, AND BE COMMITTED TO PARTICIPATE IN THE ASSOCIATION'S PROGRAMS AND ACTIVITIES. 8. IT MUST HAVE AN ESTABLISHED BUSINESS AS A FULL-SERVICE HEALTHCARE DISTRIBUTOR. (B) INTERNATIONAL MEMBERS. ANY INDIVIDUAL OR BUSINESS ENTITY ENGAGED IN THE DISTRIBUTION OF HEALTHCARE PRODUCTS IN A GEOGRAPHICAL TERRITORY OTHER THAN THAT DESCRIBED IN SECTION 1(A) (5) BUT OTHERWISE ELIGIBLE FOR ACTIVE MEMBERSHIP UNDER SECTION 1(A) MAY APPLY FOR INTERNATIONAL MEMBERSHIP. INTERNATIONAL MEMBERS SHALL ENJOY SUCH PRIVILEGES AND ENTITLEMENTS OF MEMBERSHIP AS THE BOARD OF DIRECTORS DEEMS APPROPRIATE FROM TIME TO TIME, BUT SHALL NOT BE ENTITLED TO VOTE UNDER ARTICLE IV, SECTION 4. (C) ASSOCIATE MEMBERS. ANY INDIVIDUAL OR BUSINESS ENTITY ENGAGED IN DEVELOPING, MANUFACTURING, OR LABELING OF HEALTHCARE, BEAUTY CARE, AND/OR CONSUMER PRODUCTS MAY APPLY FOR ASSOCIATE MEMBERSHIP. AN ASSOCIATE MEMBER SHALL COMPLY WITH FEDERAL, STATE, AND OTHER LAWS AND LOCAL LICENSING REGULATIONS, OR AS APPLICABLE, THE LAWS AND REGULATIONS OF THE COUNTRY IN WHICH THE MEMBER IS LOCATED. IN THE EVENT THAT A SUBSIDIARY, DIVISION, OR BRANCH OF AN ASSOCIATE MEMBER WISHES TO JOIN THE ASSOCIATION, A SEPARATE APPLICATION FOR MEMBERSHIP SHALL BE SUBMITTED FOR EACH SUCH SUBSIDIARY, DIVISION, OR BRANCH. A SEPARATE MEMBERSHIP SHALL BE MAINTAINED FOR EACH SUBSIDIARY, DIVISION, OR BRANCH THAT SEPARATELY MARKETS TO, SEPARATELY SHIPS TO, OR SEPARATELY INVOICES ACTIVE MEMBERS AND OTHER DISTRIBUTORS. AN ASSOCIATE MEMBER'S CORPORATE HEADQUARTERS MAY MAINTAIN AN ADDITIONAL MEMBERSHIP, SEPARATE FROM ITS OPERATING SUBSIDIARIES, DIVISIONS, OR BRANCHES, AT THE MINIMUM DUES LEVEL FOR THE ASSOCIATE MEMBER CATEGORY. ASSOCIATE MEMBERS SHALL ENJOY SUCH PRIVILEGES AND ENTITLEMENTS OF MEMBERSHIP AS THE BOARD OF DIRECTORS DEEMS APPROPRIATE FROM TIME TO TIME, BUT SHALL NOT BE ENTITLED TO VOTE UNDER ARTICLE IV, SECTION 4. (D) ALLIED MEMBERS. ANY INDIVIDUAL OR BUSINESS ENTITY, OTHER THAN DISTRIBUTORS NOT ELIGIBLE FOR ACTIVE MEMBERSHIP IN THE ASSOCIATION UNDER SECTION 1(A), ENGAGED IN PROVIDING SERVICES TO DISTRIBUTORS AND MANUFACTURERS RELATED TO THE BUSINESS OF HEALTHCARE, BEAUTY CARE, OR CONSUMER PRODUCTS THAT IS OTHERWISE INELIGIBLE FOR ACTIVE, INTERNATIONAL, OR ASSOCIATE MEMBERSHIP MAY APPLY FOR MEMBERSHIP AS AN ALLIED MEMBER. ALLIED MEMBERS SHALL ENJOY SUCH PRIVILEGES AND ENTITLEMENTS OF MEMBERSHIP AS THE BOARD OF DIRECTORS DEEMS APPROPRIATE FROM TIME TO TIME, BUT SHALL NOT BE ENTITLED TO VOTE UNDER ARTICLE IV, SECTION 4. FORM 990, PART VI, SECTION A, LINE 7A BOARD OF DIRECTORS. (A) THE ASSOCIATION SHALL BE GOVERNED BY A BOARD OF DIRECTORS. THE BOARD OF DIRECTORS SHALL BE RESPONSIBLE FOR IDENTIFICATION AND DEVELOPMENT OF THE PRIORITIES, POLICIES, AND POSITIONS OF THE ASSOCIATION. (B) THE BOARD OF DIRECTORS SHALL BE COMPRISED OF A CORPORATE OFFICER OF EACH ACTIVE MEMBER THAT CHOOSES TO BE REPRESENTED ON THE BOARD OF DIRECTORS. EACH ACTIVE MEMBER CHOOSING TO BE REPRESENTED ON THE BOARD OF DIRECTORS SHALL DESIGNATE ITS QUALIFIED REPRESENTATIVE IN WRITING TO THE SECRETARY, TO SERVE UNTIL A QUALIFIED REPLACEMENT IS DESIGNATED. FORM 990, PART VI, SECTION B, LINE 11 INFORMATION NEEDED TO COMPLETE FORM 990 IS PULLED TOGETHER AND COMPILED BY THE EXECUTIVE VICE PRESIDENT & COO AND REVIEWED WITH HDMA'S AUDITING FIRM. HDMA'S CEO, EVP & COO, AND DIRECTOR OF FINANCE REVIEW THE SIGNIFICANT FORM 990 INFORMATION AND MEET WITH THE TAX MANAGER FROM OUR AUDITING FIRM TO AGREE ON HOW TO ADDRESS ANY QUESTIONS OR CHANGES IN REQUIREMENTS. FORM 990, PART VI, SECTION B, LINE 12C HDMA HAS A WRITTEN CONFLICT OF INTEREST POLICY. ALL EMPLOYEES AND BOARD MEMBERS ARE COVERED BY THE POLICY. A CONFLICT OF INTEREST COMPLIANCE CERTIFICATION IS REQUIRED TO BE SIGNED BY BOTH BOARD MEMBERS AND STAFF ANNUALLY. IF A CONFLICT OR POTENTIAL CONFLICT IS IDENTIFIED, HDMA'S CEO AND COO WILL DETERMINE WHAT RESTRICTIONS WILL BE IMPOSED ON THE PERSONS INVOLVED. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION SETTING PROCESS FOR HDMA CEO HDMA'S CEO HAS A FOUR-YEAR EMPLOYMENT CONTRACT. THIS AGREEMENT IS REVIEWED AND AGREED TO BY THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS AND SIGNED BY THE CHAIRMAN OF THE BOARD. EACH YEAR, THE CHAIR AND VICE CHAIR OF THE BOARD REVIEW THE CEO'S PERFORMANCE, PREPARE A WRITTEN PERFORMANCE REVIEW AND DETERMINE THE AMOUNT OF ANY BONUS AND ANNUAL SALARY INCREASE. ANY COMPENSATION CHANGES ARE COMMUNICATED IN WRITING TO THE EXECUTIVE VICE PRESIDENT & COO FOR IMPLEMENTATION. IN SETTING THE CEO'S COMPENSATION, THE EXECUTIVE COMMITTEE UTILIZES AN INDEPENDENT COMPENSATION CONSULTANT AND THE FORM 990 OF OTHER ORGANIZATIONS. COMPENSATION SETTING PROCESS FOR OTHER HDMA KEY EMPLOYEES THE CEO, EVP & COO, AND THE DIRECTOR OF ADMINISTRATION AND HUMAN RESOURCES REVIEW ALL OTHER STAFF COMPENSATION AT THE END OF EACH CALENDAR YEAR. A WRITTEN PERFORMANCE APPRAISAL IS REQUIRED FOR EACH EMPLOYEE. THE OVERALL PERFORMANCE RATINGS FOR ALL EMPLOYEES ARE REVIEWED BY THE SENIOR MANAGEMENT TEAM TO ENSURE AS MUCH CONSISTENCY IN RATINGS ACROSS DEPARTMENTS AS POSSIBLE. EACH POSITION HAS A SALARY RANGE, WHICH IS UPDATED BY AN INDEPENDENT OUTSIDE CONSULTANT APPROXIMATELY EVERY THREE YEARS. THE CEO, EVP & COO, AND THE DIRECTOR OF ADMINISTRATION AND HUMAN RESOURCES ALSO LOOKS AT WHERE EMPLOYEES' COMPENSATION FALLS WITHIN THEIR SALARY RANGES (BASED UPON THE MOST RECENT JOB DESCRIPTIONS) AND MAKE RECOMMENDATIONS TO THE CEO ON ANY "PARITY" ADJUSTMENTS, ON A CASE-BY-CASE BASIS. IN ADDITION, ALL SUPERVISORS WHO REQUEST ANNUAL BONUSES FOR ANY OF THEIR EMPLOYEES MUST SUBMIT A WRITTEN PROPOSAL. THESE PROPOSALS ARE REVIEWED BY THE CEO, EVP & COO, AND THE DIRECTOR OF ADMINISTRATION AND HUMAN RESOURCES AND APPROVED BY THE CEO. FORM 990, PART VI, SECTION C, LINE 19 THEY ARE NOT MADE AVAILABLE TO THE PUBLIC. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -629,034. FORM 990, PART XII, LINE 2C THE AUDIT OVERSIGHT PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. HDMA SERVICE CORPORATION 901 NORTH GLEBE ROAD SUITE 1000 ARLINGTON VA 22203 521191833 NO ACTIVITY/DORMANT VA 0 0 HDMA CENTER FOR HEALTHCARE SUPPLY CHAIN RESEARCH 901 NORTH GLEBE ROAD ARLINGTON VA 22203 521225130 RESEARCH AND EDUCATION VA 501(C)(3) EXEMPT HEALTHCARE DISTRIBUTION MANAGEMENT ASSOCIATION 0 HEALTHCARE DISTRIBUTION MANAGEMENT PAC 901 NORTH GLEBE ROAD ARLINGTON VA 22203 541559237 POLITICAL VA 527 HEALTHCARE DISTRIBUTION MANAGEMENT ASSOCIATION 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1