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2011 POLITICAL CONTRIBUTIONS 2011 Lilly Political Contributions 2 Government actions such as price controls, pharmaceutical manufacturer rebates, the Prescription Drug User Fee Act (PDUFA), and access to Lilly medicines affect our ability to invest in innovation. Lilly has a comprehensive government relations operation to have a voice in the public policymaking process at both the state and federal levels. Lilly is committed to participating in the political process as a responsible corporate citizen to help inform the U.S. debate over health care and pharmaceutical innovation. As a company that operates in a highly competitive and regulated industry, Lilly must participate in the political process to fulfill its fiduciary responsibility to its shareholders, and its overall responsibilities to its customers and its employees. Corporate Political Contribution Elected officials, no matter what level, have an impact on public policy issues affecting Lilly. We are committed to backing candidates who support public policies that contribute to pharmaceutical innovation and healthy patients. A number of factors are considered when reviewing candidates for support. The following evaluation criteria are used to allocate political contributions: • Has the candidate historically voted or announced positions on issues of importance to Lilly, such as pharmaceutical innovation and health care? • Has the candidate demonstrated leadership on key committees of importance to our business? • Does the candidate demonstrate potential for legislative leadership? • Is the candidate dedicated to improving the relationship between business and government? • Does the candidate represent a state or district where Lilly operates a facility or has a large concentration of employees or retirees? • Would Lilly support have an impact on his or her campaign? It is against company policy for any company funds, property, or employee services to be used or authorized to support any candidate for political office, political party, official, or committee unless the support is permitted by law and approved by the appropriate company representatives. Lilly corporate political contributions are made in accordance with a budget for company political contributions. This budget is determined annually and allocated by state. Throughout the year, members of the company’s government affairs organization bring forward specific recommendations for company political contributions. The Chief Financial Officer or his designee and General Counsel of the company or his designee must approve U.S. corporate political contributions before they are made. The government affairs group manages the process for delivery of contributions so approved. 2011 Lilly Political Contributions 3 LillyPAC Contributions initiatives, advocacy efforts, and the important work In addition to corporate political contributions, conducted by Lilly employees every day to make the Lilly also enables voluntary eligible employee world a healthier place to live. LillyPAD creates the participation by sponsoring a Political Action opportunity for two-way conversations. Committee -- LillyPAC. The LillyPAC Governing Board (the Board) oversees all contributions made Lilly also founded The Campaign for Modern by LillyPAC. The Board is comprised of 13 U.S.- Medicines (www.modernmedicines.com). The based employees who represent components Campaign for Modern Medicines believes that throughout the company. patients deserve timely access to breakthrough medicines and that the U.S. should be the global LillyPAC contributions are made in accordance leader in discovering and delivering these new with a budget, which is determined annually by lifesaving cures and treatments. The Campaign for the Board. The Board utilizes the same corporate Modern Medicines is an organization of like-minded contribution criteria outlined above for determining individuals, advocacy organizations, and businesses LillyPAC contributions. LillyPAC support is who advocate to policymakers in support of issues divided between federal and state candidates. that promote these goals. Throughout the year, members of the company’s government affairs organization and employee Memberships LillyPAC members may bring forward specific In addition to direct political contributions, Lilly recommendations for LillyPAC contributions. also maintains memberships in organizations LillyPAC contributions are not required to be that report lobbying activity to the U.S. federal approved separately by the Chief Financial Officer government. Lilly is committed to supporting or General Counsel of Lilly. organizations that champion medical innovation. Lilly contributed $50,000 or more per year to the LillyPAC is funded by voluntary contributions from following organizations in 2011. Organizations eligible employees. All disclosure requirements are where the company has a board seat are noted to met that apply to LillyPAC. LillyPAC contribution reflect the greater degree of involvement in setting data are available to the public on the Federal priorities for those organizations. Election Committee (FEC) website (www.fec.gov), through the individual states’ agencies, and on the Memberships in 2011 include: Lilly website at www.lilly.com. Animal Health Institute (board seat), Biotechnology Industry Organization (board seat), Business Social Media Roundtable, Central Indiana Corporate Partnership Lilly has created a blog called LillyPAD (www. (board seat), Greater Indianapolis Chamber of lillypad.lilly.com). LillyPAD was created to Commerce (board seat), Healthcare Leadership begin a dialogue with the public on matters that Council (board seat), Indiana Chamber of Commerce are important to Lilly and those following the (board seat), National Association of Manufacturers biopharmaceutical industry. LillyPAD focuses (board seat), PhRMA (board seat), and US Chamber on public policy issues, corporate responsibility of Commerce. 2011 Lilly Political Contributions 4 Lilly Corporate Contributions 2011 Candidate Organization / Committee State Party Office Amount Alabama Republican Party - Non Federal Account AL R State Party $2,000 Sessions, David Friends of David Sessions AL R State House $500 Bledsoe, Cecile Cecile Bledsoe Campaign AR R State Senate $350 Dismang, Jonathan Jonathan Dismang Campaign AR R State Senate $350 Elliott, Joyce Joyce Elliott for Senate AR D State Senate $300 Files, Jake Jake Files Campaign AR R State Senate $200 Holland, Bruce Bruce Holland Campaign AR R State Senate $200 Hutchinson, Jeremy Jeremy Hutchinson for Senate Campaign AR R State Senate $200 Irvin, Missy Missy Irvin Campaign AR R State Senate $350 Key, Johnny Johnny Key for Representative Campaign AR R State Senate $200 Lamoureux, Michael Michael Lamoureux Campaign AR R State Senate $200 Pritchard, Bill Bill Pritchard for Senate Campaign AR R State Senate $350 Rapert, Jason Jason Rapert Campaign AR R State Senate $200 Rephan, Jerry Jerry Rephan for House District 24 AR D State House $250 Sample, Bill Bill Sample Campaign AR R State Senate $200 Summers, Tim Tim Summers for Senate AR R State Senate $250 Teague, Larry Larry Teague Campaign AR D State Senate $350 Thompson, Robert Robert Thompson for Senate AR D State Senate $250 Williams, Eddie Joe Eddie Joe Williams Campaign AR R State Senate $200 Lieu, Ted Ted Lieu for State Senate CA D State Senate $1,500 Accountability of Colorado CO D State House $500 Colorado Leadership Fund CO R State House $500 Senate Majority Fund CO R State Senate $500 Twenty-First Century Colorado CO D State Senate $1,000 Democrat Governor’s Association DC D Governor $10,000 Deleware Democratic Party - Non-Federal Account DE D N/A $5,000 Aubuchon, Gary Gary Aubuchon Campaign FL R State House $500 Berman, Lori Lori Berman Campaign FL D State House $500 Bogdanoff, Ellyn Senate Comm to Elect Ellyn Bogdanoff FL R State Senate $500 Brodeur, Jason Committee to Elect Jason Brodeur FL R State House $500 Corcoran, Richard Corcoran for Florida House of Representatives FL R State House $500 Crisafulli, Steve Committee to Elect Steve Crisafulli FL R State House $500 Detert, Nancy Committee to Elect Nancy Detert FL R State Senate $500 Dorworth, Chris Committee to Elect Chris Dorworth FL R State House $500 Flores, Anitere Committee to Elect Anitere Flores FL R State Senate $500 Florida Democratic Party - House Victory FL D State Senate $5,000 Florida Democratic Party - Senate Victory FL D State House $5,000 Frishe, James Jim Frishe House Campaign FL R State House $500 Garcia, Rene Rebne Garcia Senate Campaign FL R State Senate $500 2011 Lilly Political Contributions 5 Candidate Organization / Committee State Party Office Amount Goodson, Tom Tom Goodson Campaign FL R State House $500 Grant, James W. James W. Grant Campaign FL R State House $500 Grimsley, Denise Denise Grimsley State Senate Campaign FL R State Senate $500 Harrell, Gayle Gayle Harrell House Campaign FL R State House $500 Hays, Alan Committee to Elect Alan Hayes FL R State Senate $500 Holder, Doug Doug Holder Campaign FL R State House $500 Horner, Mike Mike Horner House Campaign FL R State House $500 Joyner, Arthenia Arthenia Joyner House Campaign FL D State Senate $500 Latvala, Jack Jack Latvala Campaign FL R State Senate $500 Negron, Joe Committee to Elect Joe Negron FL R State Senate $500 Passidomo, Kathleen Kathleen C. Passidomo Campaign FL R State House $500 Renuart, Ronald Ronald Renuart House Campaign FL R State House $500 Republican House Majority FL R State House $5,000 Republican Senate Majority FL R State Senate
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