of Living Skills In the Schools Inc.

It is the policy of Living Skills in the Schools, Inc. to prohibit any member of its governing board from engaging in any activity, practice, or act which conflicts with the interest of the Foundation. Several examples of Conflicts of Interest, which should always be avoided are set forth below. Similar situations, which create an actual conflict of interest, or even the appearance of such a conflict, must be avoided. The member shall inform the board of existing possible conflicts right away.

Conflict of Interest: Relates to an individual board member’s distribution of effort between Foundation duties and external professional activities.

The Board of Directors are affected by this policy.

The policy is to ensure that Living Skills in the Schools, Inc., governance is protected against any conflicts of interest as policies are developed and implemented, as and as decisions are made.

Ultimately, the governing board is responsible for ensuring that members of the governing board abide by the standards, for managing and policing compliance with these standards.

What is a Conflict of Interest for a member of the governing board?

Generally, a conflict of interest for a member of the governing board exists when that member has a personal interest in an action the board may undertake in support of, or in opposition to, a matter before it. A conflict of interest may also exist when a member of the governing board is involved with outside interests/actions where such actions are the Foundation and where a member peruses such interest at the expense and harm of the Foundation.

When should a member declare a Conflict of Interest?

Each member of the governing board shall complete a Conflict of Interest Statement annually. This statement will require each member to:

A. List any business in which they, or a company where they are employed, are doingbusiness with the Foundation directly or indirectly, or may wish to do business with theFoundation.

B. State exactly their paid, or non-paid, status with the above listed organizations.

C. Indicate whether a member of the governing board received any compensation of anykind from any source of a result of their membership on the governing board.

How should a Conflict of Interest matter be handled before the board?

When a conflict is identified, the governing board shall be informed by the member with the conflict. If the conflict is such that it is only material to a specific matter before the governing board, then the member with the conflict will abstain from voting on the matter – if it is the determination of the governing board. A conflict exists with a member that would prevent that member from fully participating in the governing process on an ongoing basis, the governing board may ask that member to step down.