r

Return of Organization Exempt From Income Tax D "° "°&°°°'

Form 9 9 O r " Under section 501(c9527, or 4947(a)(1) of the Inferno Code (except black loop 2004 benefit trust or private foundation) Open .o PuDilc Int ~I a6a�uos«rica " The organization may have to use a copy of this roturrt to satisfy slate teportinp requirements . Ins p ection A For the 2004 calendar ear, or tax ear beginning and ending B Chock it ~~ C Name of organization u Em piuyuf idunlificallon number

cAhdadn00' '*bo'o,'KENTUCKY NEPHROLOGY RESEARCH TRUST INC 43-1952943 Print 0 . C

Ndift typo. Doting* Number and street (or P .O . box fl mall I, not delivered to Street address) Roo~~dyuito E 7otophono number ~ictul Bposoo clnc~.10~. WINCHESTER ROAD 00 859-225-3595 1`' losing ~~

- -'-- otcone, City or town, state or country, and Zip + 4 F Aftmawftnv00W Ctv~lh ACefuld

0 Arroandtxj mluln LEXINGTON, KY 40505 ~ Section BOt (c)(9) organizations and 4947(0(1) nonosompt tharllOplo trusts H and I aro not cippllcnblo to socflon $27 organizations . must attach a complotod SchoAuio A (Form 990 or 990 " E2) . H(o) Is this n group return for affiliates? ~ Yos [K No

0 Wadslto : "N/A H(b) it 'Yes .* ontor number o1 affiliates J Organization typo (aaomvom) 1111~[91501 c 3 ) " onion no .) 4947 (a )( 1 ) or 527 H(c) Are all affiliates Included? N /A ~s-~N K Check here " It the organization's gross receipts are normally not morn than $25,000 . The (if ~Imo. attach a list.)

H(d) Is this a separate return tiled by an or- organization need not file a return with the IRS ; but H the organization received a Form 990 Package anization covered b a rou rulin g? 0 Yes K No In the mail, ft should file a return without financial data . Some states require a complete return . I Grou t) Exemption Number 10,

M Check 1 0 if the organization is not required to attach L Gross recei p ts : Add hoes 6b, Sb, 9b, and tOb to line 12 . 2 , 104 , 881 . Sch B (Form 990, 990-EZ, or 990-PF) . ~Paffil: Revenue Expenses, and Changes in Net Assets or Fund Balances

t Contributions, gifts, grants, and similar amounts received : a Direct public support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 a c b Indirect public su support PP . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .�������� . . . . . . . . . . tb c Government contributions rants 1t ~` .. (9 ) . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d Total (add lines to through iC) (Cash E nonCash $ 1d

02 Program service revenue Including government fees and contracts (from Part VII, line 93) , . ., . . . . . ., . . . . . . ., . ., . . . . ., . � ., 2 2 0 98 , 810 . 3 Membership duos and assessments . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4 Interest on savings and temporary cash investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6 0 71 . 5 Dividends and Interest from securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 a Gross rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Be f~`

C\1 b Less rental expanses 6b ", V c Not rental Income or (loss) (subtract line 6b from line 6a) ��� , . � , . �� , ., . ., . . .������ , . �� . . � .��� .�� , . . �� .� .���� 8c W D 7 Other Investment Income (describe " 7

'e 8 a Gross amount hom solos of assets other A Securities B Ocher N m than Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8a

b Loss : cost or other basis and sofas expenses .�� , ., . Bb ~ ~?° c Gain or (loss) (attach schedule) 9c

Q d Net gain or (loss) (combine line 8c, columns (A) and (B)) . .���� . . � . . .� . ., . . � .��� . �� .� , . � , .� , .��� , . . . .��� , 8d 9 Special evanL and activities (attach schedule) . It any amount is from gaming, check here " F7

a Gross revenue (not including E of contributions reported on line 1a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . go

b Less : direct expenses other than fundraising expenses � . . . . ., . . ., . . . � . .� . . ., . 9b c Net income or (loss) from special events (subtract line 9b from fine go) . . . . . . . . . 9c

70 a Gross sales o1 inventory, less returns and allowances � ��� , � , . . � , � 10a b Less : cost of goods sold � , . . . � . .������ , , . . . . � � , � 10b c Grass profit or (loss) from sales of inventory (attach schedule) (subtract line tOb from line t0a) tOc

11 Other revenue (from Part VII, line 103) ���� . . . . . . ., . . . . . ., ., . � , ��� , , , . .� � , � . � . , , � 11 12 Total revenue add lines td 2 3 4 5 6c 7 8d 9c tOc and 11 , ������ , . � , . . . � �� 12 2 , 104 , 881 . 13 Program services (from line 44, column (B)) . ., , . . , , . . . ., . � , ., , ~ . ., , ~

.

� , 13 1 f 2-86 , 209- 14 Management and general (from line 44, column (C)) ~l.S,CE'V

~D 14 2 2 0 , 6 4 7 .

15 Fundraising (from line 44, column (D)) 15 .T_ 16 Payments to affiliates (attach schedule) , . . . . . . . . , ~ , Nov 16 17 Total expenses add lines 16 and 44 column A . . , , .� . Q . , , , , 17 1 , 506 , 856 . 18 Excess or (deficit) for the year (subtract line 17 from line 12) 18 598 , 025 . .̂ ) 19 Net assets or fund balances at beginning of year (from line 73, ~ 19 1 205 , 45 8 . FA

.2 k 20 Other changes in net assets or fund balances (attach explanation) 20 0 . 21 Net assets or fund balances at end of year (combine lines 18, 19, and 20) 21 1 803 , 483 . r,

~ oos LHA For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions . Form 990 (2004) 1

What is the organization's primary exempt purpose? No- SEE STATEM

1,286,209 .

d

2

KENTUCKY NEPHROLOGY RESEARCH TRUST INC . 43-1952943 ('P''~ad ~~ ,~ Statement o All organizations must complete column (A) . Columns (B), (C), and (D) are required for section 501(c)(3) Page 2 t.~.~..r Functional F~cpenses and 4) organizations and section 4947 (a )( 1 ) nonexempt charitable trusts but optional for others .

Do not include amounts reported on line (A) Total (B) Program (C) Management 6b 8b9b lob or 16 0l Part l. services and anent (0) Fundraising

22 Giants and allocations (attach schedule) .� , ., . . ., . . (Cash S noneaon t 22

23 Soecflic assistance to inrlivirlnnlc I,Harh C~Aerlnle~ 79 I ~

24 Benefits paid to or for members (attach schedule) 24 ~ - - 2s Compensation of Officers . olreclors, etc . ������ 2s 67 , 800 . 0 . , 67,800 . 'T 0 . 28 Other salaries and wages . � .� . . . . ., . .� , . .� . . � .� . � ., 2s 39 8 5 7 8 . 398 t 5 70 . 27 Pension plan contributions , . � ., ., ., . .��� .����� , 27 20 , 000 . 2 0 0 00 . 2s Other employee benefits �� . � . � . . ��� , . � . � . . . . . . . . 2a 70 , 687 . 7 0 6 8 7 . 29 Payroll taxes . . . . . . . . . . . . . . . . . . . ., . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a 32 1 284 . 32 , 284 . 90 Professional tundralslng loos ������������� , 80 91 Accounting loos ������� , . ������������� 91 92 Legal loos . . . . . . . . . . . . . . ., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 93 Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 15 043 . 8 , 556 . 6 , 487 . 34 Telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 5 225 . 5 , 225 . 3s Postage andshipping ��� . . . . .��� , .� .� . ��� .�� 35 1 869 . 1 , 869 . 36 Occupancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 37 355 . 37 , 355 . 37 Equipment rental and maintenance � , . .������ 37 38 Printing and publications ., ., .� ., ., . .�� , . . . . .� , . � , 38 21 . 21 . 39 Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3s 5 , 561 . 5 , 561 . 40 Conferences, conventions, and meetings .��� . . . . . 40 1 , 462 . 1 , 462 . 41 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

42 Depreciation, depletion, etc . (attach schedule) � , 42 4 , 354 . 4 , 354 . 43 Other expenses not covered above (itemize):

a 43a b 49b c 49c d 43d e SEE STATEMENT 1 a3o 846 617 . 714 395 . 132 222 .

44 =9"°'~' 74 1 , 506 , 856- 1 1 , 286 , 209 . 220 647 . 0 . Joint Costs . Check " f1 you are following SOP 98-2 . Are any point costs from a combined educational campaign and lundrafsinp solicitation reported in (B) Program services? ���� , . ., . .� . . . ., 1 0 Yes ~ No II Yes; outer (I) the aggregate amount of these point costs $ ; (II) the amount allocated to Program services $ (III) the amount allocated to Manoaoment and general E : and 110 the amount allocated to Fundraisino S

M agnnizollon3 meal Oo7Cr1b0 their cxampt purp07o oUlOVCmento In o day and cOnello Mariner. $tnto the numDOr of dlOnro oorvo0, publkatbna Inouad, ole. DI; nenicvcn+c~te that am not m=umble. c. "ecno � soi(cX3) wW (a) o~pontcouons a,a gee i(cuXi) nonuxompt cnnAtoblo truata maul oleo enter the amount of gmmn and maeaUono a otnorr .)

a ,KENTUCKY NEPHROLOGY RESEARCH TRUST, INC . ('KNRT") PROVIDES PERITONEAL DIALYSIS TRAINING, SUPPORT SERVICES, EQUIPMENT SUPPLIES TO PATIENTS WITH END-STAGE RENAL DISEASE OR PERMANENT DISEASE OF THE KIDNEYS (Grants andallocations $

b

c

Program Service ~apensos

(Rnqutioo to SOl(C1(3~np (a) OW. . OM a847 gem: but ootlonN for othon

e Other program services (attach schedule) (Grants and allocations $ f Total of Program Service Expenses (should equal line 44, column (8), Program services) " 1,28 6 , 209 .

oi3°'3os Form 990 (2004)

Form 990(2,00a) KENTUCKY NEPHROLOGY RESEARCH TRUST, INC . 43-1952943 Page 3

.Part N Balance Sheets

IBI End of year

as 200 . ce 1,698,519 .

47e 185 .885 .

45 Cash - non-interest "Dearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., . 48 Savings and temporary Casli investments ., .� . . . . . ., . . � , . . ., ., . ., .��� . �� , . . �� . . ., .� , . . . . . .,

923 .484 .

3

Note : Whore roqulrBd, attached schedule: and amounts within the description column f (A) should be for end-of-year amounts only. ~ Beginning of year

e7 a Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ova 185 , 8£!S . b Los : allowance for doubtful accounts 47D

7 .

48 o Pledges receivable 48a b LESS : allowance for doubtful accounts ��������� L48 b~ 48t

49 Grants receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 80 Receivablos from officers, directors, trustees .

14 and key employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SO

51 a Other notes and loans receivable ����� , . . ���� : : : Si a b Less : allowance for doubtful accounts � , ., . . ���� Stb Stn

52 inventories toy sage or use , . . . . . . . ., . . . . . � , . . . . . . ..�� ., ., . . ., . . . � .�� . , � .�� . . . . . �� ., , � 21 , 803 . 52 3 , 680 . 53 Prepaid expenses and deferred charges .�� . ., . . . . . �� . . � .����� , �� , ���������� 5 , 214 . 53 4 , 945 . 54 Investments - securities ���������������������� , " 0 Cost r7 FMV 54 55 a Investments - land, buildings, and n

equipment : basis . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .. . . . . . . . . . . . SSa

b Less : accumulated depreciation ������������� , 65b 55c SB Investments-other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 57 e Land, buildings, and equipment : basis . . 57a 21 , 697 .

b joss: accumulated depreciation �� ,STMT 3. . � 57b 7 , 649 . 17 , 528 . 57c 14 , 048 . se Other assets (describe 110- NON-COMPETE AGREEMENT ~ 54 1 333 . se 50 , 333 .

69 Total assets add lines 45 through 58 must e ua1 tine 74 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . ., . . . . . . . . . . 1 , 372 , 699 . 69 1 , 957 , 605 . 80 Accounts payable and accrued expenses . . . . . . . � . . �� ., . ., . . . . . .�� , . . . .� ., . . ., . . ., . ., ., . . . .� ., .� 167 , 241 . 8o 154 , 122 . 81 Grants payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 82 Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 83 Loans from oflicois, directors . trustees, and key employees 83

a 84 e Tax-exempt bond liabilities , .���������� , ., .�� ., ., .��� . � ., 84a j b Mortgages and other notes payable 84b

65 Other liabilities (describe 1 ) 85

Bs Total liabilities (add tines so tnrou n s5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 , 241 . 88 154 , 122 . Organizations that follow SFAS 117, chock here 111", 0 and complete lines 67 through

69 and lines 73 and 74 . 111 87 Unrestricted u . . . . . . . . . . . . . . . . . . . . . . . ., . . . . . . . . . . ., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 68 Temporarily restricted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

m 69 Permanency restricted ��� , . .�.������ , . .�. . . . . . . . . ., . . . . . �., . � , . . , �, 69 13 Organizations that do not follow SFAS 117, check here 1 ~ and complete lines

70 through 74 70 Capital stock, trust principal, or current funds .� �� .� , . . . ., . , , ��� , 0 . 70, 0 . r Paid-in or capital surplus, or land, building, and equipment fund � , . � �� , , 0 . 71 0 .

d 72 Retained earnings, endowment, accumulated income, or other funds . . . . . . . . . . . .

1 , 205 , 458 . 72 1 , 803 , 483 . 73 Total net assets or fund balances (add lines 67 through 69 or lines 70 through 72 ; . , ;�,

column (A) must equal line 19 ; column (e) must equal line 21) . � , 1 , 205 , 458 . 1 73 1 803 , 483 . 74 Total liabilities and net assets / fund balances (add lines 66 and 73) , 1 , 372 , 699 . 74 1 , 957 , 605 .

Form 990 is available for public inspection and, for some people, serves as the primary or sale source of information about a particular organization How the public perceives an organization in such cases may be determined by the information presented on its return Therefore, please make sure the return is complete and accurate and fully describes, in Part III, the organization's programs and accomplishments

423021 01 .13-OS

KY NEPHROLOGY RESEARCH TRUST, INC . 43-1952943 a Reconciliation of Expenses per Audited Financial Statements with Expenses per

Reconciliation of Revenue per Audited Financial Statements with Revenue per

a Total expenses and losses per ~ ~ .WA f' audited financial statements . . . . . . . . . . . . . . . . , . . . . " I a N/A

h An~Annl~ inr~InrleA nn qne ~ hr~r~r~1 Cn

dine 17, Form 990: ` ~ ' (1) Donated services ~ --

~~ and use of facilities . . . $ (2) Prior yogi adjustments

raporlocl on line 20 . �, ,, . ,��, . � ,

Foini 990 . . . . . . . . . ., . . ., i _ - -- -E: F=fir . (9) Losses raportacl on

line 20 . Form 990 . . . t (4) Other (specify):

Add amounts on lines (1) through (4) . . . . . lip- b c Line a minus line b . . . � . � , . . ., . . . . � . ., ., " t

,~ d Amounts Included on line 17, Form " N+~' M 990 but not on line a :

~.i

?r' ~ ~ . (1) Investment expenses not Included on

>;rt line 6b, Form 990 . ., i (2) Other (specify):

a Total revenue, gains, and other support per audited financial statements . . . . . . . . ., . � . . IN. a

b Amounts included on line a but not on line 12, Form 990 :

(1) Net unrealized gains an Investments ���S

(2) Oonited services ,and use 01 facilities � , $

J3) Recoveries of pilot year ginnt9 . . . . . . . . . .

(4) Other (specify) :

Add amounts on lines (1) through (4) ���� , " b c Line a minus line b ������� ., . .���� . . . . . ., " c d Amounts Included on line 12, Form

990 but not on line a :

(t) Investment expenses not Included on line 6b, form 990 . . . S

(2) Other (specify) : S

Add amounts on tines (1) and (2) ������ " d e Total revenue per line 12, Form 990

( line c plus line d � . . . �. .�� , . . �� . ��� . . . . . . " o Part=V{ List of Officers, Directors, Tru and

°"` account and °° other allowances

0 . 0 .

(A) Name and address

DAVID L . MARSHALL 115 SAINT ANN STREET OWENSHORO, KX 42303 5 61 800 .

IRECTOR SEC TARY GEORGE MCGINN 30 BURTON HYLLS HLVD_y_SUITE 450____ NASHVILLE, TN 37215 1 1 500 . 0 .

1 , 500 . 0 .

1 .500 . 0 .

0 .

0 .

0 .

0 . 1,500 .1 0 . --------------------------------- ---------------------------------

--------------------------------- ---------------------------------

--------------------------------- ---------------------------------

--------------------------------- ---------------------------------

4

S Add amounts on lines (1) and (2) ��� . . � ,

e Total expenses per line 17, Form 990 (line t plus line d) . . . ., ., ., .� , . � . . ., . . . . . . . . .

plOyAeS (List each one even it not compensated .) ~ Title and average hours C) Compensation (Dcco~ per week devoted to SII not pal, outer p��',

position -0- .1 [RECTOR/PRESIDENT

SIGRUN LEONHARDT D IRECTOR 3661 RABBITS FOOT TR.AIL~ ~3 ________ LEXINGTON KY 40503 1 RON BLAKE DIRECTOR 765 DRY RIDGE ROAD VERSAILLES KY 40383 -------------- I HARMUT H . MALLUCHEI_MD_____________ IRECTOR 800 ROSE STREET LEXINGTON, KY 40536 r ----- --

I

75 Did any officer, director, trustee, or key employee receive aggregate compensation of more than $100,000 from your organrzation and all related organizations, of which more than $10.000 was provided by the related organizations? It Yes; attach schedule " 0 Yes EKNo

423031 01-13-05 Form 990 (2004)

92 Section 4947(c)(7) nonexempt charitable Dusts fling Form 990 In lieu of Form 1041- Check here No- 0 and enter the amount of tax-exempt interest received or accrued dunng the tax year 92 N/A

423011 0,_,3-05 form 990 (2004)

5

~Form 990(?004) KENTUCKY NEPHROLOGY RESEARCH TRUST INC . 43-1952943 Pages Part VI Other Information Yes No 76 Did the organization engage in any activity not previously reported to the IRS? II Yes; attach a detailed description of each activity _ TB X 77 Were any chanyes made in the organizing or governing documents but not reported to the IRS? � , .�.�� .� . . � , .��� , ., .�������� , ���� , J .77 X

If 'Yes,* attach a conformed copy of the changes. _ . - - :_ 78 a Did the OrOanizOUon havP nnralmoA hneinoec nrncc _nrn..�e n! $1,00c ., ~ ~ ~~~+-g GuJ010G Uy f~li~ IUIUIh ( n ,Ace . . . . . . . 7f18

b It'Yes ; has it tiled a tax return on Form 990-T for this year? ����� , . ���� .�� ,;;��� .���������. . . . . . . . ���� , . . . . . . . . . . . . . . . . . ̀ l,/, A, ��� , 78b

79 was there a liquidation, dissolution . termination, or substantial contraction during the year? ������������������������� . ������ 79 X If 'vus; anacn n statement

80 a Is the organization related (other than by association wilt a statewide or nationwide organization) through common membership, governing bodies, trustees, officers . etc ., to any other exempt or nonoxompt organization? ��������������������������������� 80a X~

b If *Yes .' onto r the name of the organization 00- KNRT SUPPLY , INC ,end chock wholhor It Is exempt or nonoxOmDl . ¬{, y _ $t T :. ~ ;--~

81 o Enter direct or Indirect political expenditures . Sea line 81 InsUuCtions �� , 810 0 . D Did the organization file Form 1120-POL for this year? , .������� , ., . ����������� .������������������������ ����������� 811111 K

82 a Did the organization receive donated services or the use of materials, equipment, or facilities at no charge or at substantially less than lair rental value? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82a X

b It Yes,' you may indicate the value of these Items here . Do not include this amount as revenue in Part I or as an a expense in Part II, (See Instructions (n Part III,) ������� , ����� � , � , . , � .����� , ., . , �� , � , , , 82b N/A g

83 a Did the organization comply with the public Inspection requirements for returns and exemption applications? , , �� , ��� , ��� , 89a X b Did the organization comply with the disclosure requirements relating to quid pro quo contributions? , ��� .�� . ��� N, ~A . . . .�� , 89b

84 a Did the organization solicit any contributions or gifts that were not tax deductible? �� . . .������ ��� , ., ������� ����� , ��� . �� , � Boa X b If *Yes,' did the organization Include with every solicitation an express statement that such contributions or gigs were not . M MR

tax deductible? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ./A . . . . . . . . . 84b

85 501(c)(4), (5), or (6) organizations. a Were substantially all dues nondeductible by members? � �� , . � ���� , ������ , �� , NIA . . . ��� gsa b Did the organization make only In-house lobbying expenditures of $2,000 or less? . . . . . . . . . . . . . . . . . . . . . . . . . . . . � , N,/.A . . . . . . . . . 85b

It 'Yes' was answered to either 85a or 85b, do not complete 85c through 85h below unless the organization received a waiver for proxy tax v`P, :' owed for the prior year,

c Dues, assessments, and similar amounts from members � .��� ., .��� . . � .������ , ., . ., .���������� , 85c N/A d Section 162(e) lobbying and political expenditures � .������ ���������� , . � , , 8Sd N/A ..,:

e Aggregate nondeductible amount of section 6033(0)(1)(A) dues notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BSe N/A I Taxable amount of lobbying and political expenditures (line 85d less 85e) ���� 851 N/A 2% i p Does the organization elect to pay the section 6033(e) tax on the amount on line 8511 .���� , .� . . . . .� .�� . ., . ., .���������� , N./A, . . . . . . ., gg h II section 6033(0)(1)(A) duos notices were sent, does the organization agree to add the amount on line 851 to its reasonable estimate of dues

allocable to nondeductible lobbying and political expenditures for the following tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . /A ���� , 8Sh 88 501(c)(7) organizations, Enter. a initiation fees and capital contributions Included on line 12 . . . . . . . . . . . . BBa N/A : . ..~ . , . >-b Gross rece( ts . Included on line 12, for public use o1 club facilities � , ., . . . 86b N /A P D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 501(c)(12) organizations. Enter: e Gross Income from members or shareholders . . . . ., . ��� ., . . �. .�� , . 87e N/A

b Gross Income from other sources. (Do not not amounts due or paid to other sources f~~ ag ainst amounts duo or received from them. N/A R : :~; ~ ) . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87b

88 At any time during the year, did the organization own a SO% or greater interest in a taxable corporation or partnership, or an entity disregarded as separate from the organization under Reputations sections 301 .7701-2 and 3017701-3? It 'Yes : complete Part IX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 X

89 a 501(c)(3) organfzotlons .EnterAmount of tax imposed on the organization during the year under : section 4911 . 0 . ; section 492 " 0 " ; section 4955 . 0 . s V

b 501(c)(3) and 501(c)(4) organizations. Did the organization engage in any section 4958 excess benefit transaction during the year or did it become aware of an excess benefit transaction from a prior year? It Yes; attach a statement explaining each transaction 89b X

c Enter. Amount of tax imposed on the organization managers or disqualified persons during the year under sections 4912, 4955 . and 4958 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 0 .

d Enter. Amount of tax an line 89t, above, reimbursed by the organization ����� . � � ������ , . ., .�� , . � , ., . 0 . 90 a List the stales with which a copy of this return IS filed 1 KENTUCKY

b Number of employees employed in the pay period that includes March 12, 2404 . � . . , � . , . , .�� . . , . . . . . . . . . . ~ 90b 7 91 The books are (n care of loo- DAVID MARSHALL Telephone no " 270-684-211 0

Located at " 115 SAINT ANN STREET, OWENSBORO, KENTUCKY ZIP +4 . 42303-4145

Form 990 004 KENTUCKY NEPHROLOGY RESEARCH TRUST Part VII Analysis of income-Producing Activities see papa 33 of the Instructions.) Note : Enter prozs amounts unless otherwise Unrelated business incor

indicated. Business Amount 93 Program service revenue : code

a rA'1'lE1V'1' SERVICE REVENUE b REVENUE ADJUSTMENTS c d 0 1 Medic) I olMoUiCald paymOnla .������� , .� , . �� , .��� p F00s and contracts from government agencies �� , . . . ��

94 Membership duos and assessments ��������� ., ., ., 95 interest on savings and temporary cash investments .� 94 Dividends and Interest from securities � ., .������ , ., . 97 Net rental Income or (loss) from real estate :

a debt-financed property . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b not debt-financed property ���������������� . � ,

98 Net rental income or (loss) from personal properly . . �� 99 Other investment income . . . ., . ., . ., . ., . . . � ., . . . . ., . ., .� . . . 100 Gain or (loss) from sales of assets

other than Inventory . � . .�� , ., ., . . ., ., . �� , . . . .����� . � , . 101 Net income or (loss) from special events . .�� . . . . . � . . . . . 102 Gross profit or (loss) from sales of Inventory . .��� . . . 103 Other revenue :

8 b C O e

104 Subtotal add columns ( B ) . ( D) . and E ( )) . . . . . . . . . . . . . . . . . . 105 Total (add line 104, columns (B), (D), and (E)) � , ., . . ������� .� . � .�� .��� . . .����� , . . Note : Line 105 plus Iino 1d, Port l, should oouN !ho amount on llno 12, Part 1.

4t974l,506 . <2,875 .696 .>

0 .K'a 6 , 071 .1 2 , 098 , 810 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .t 2,104881 .

:PartsXVI Information Regarding Transfers Associated (a) Did the organization, during the year, receive any funds, directly or indirectly (b) Did the organization, during the year, pay premiums, directly or indirectly, or Note : If 'Yes' to (b) , file Form 8870 and Form 4720 see instructions).

Und tlct of pM/uy, I d tore that I have mcwnlned INS rctum, inUuElnp otcc Please co on ~ Iota De U n of (other than of6ccl) Is bases on all Inh

Sign ' / . . t1 Here Signature otti r Date

Paid Preparer's' V signature V ~ Pteparers ~,���

.r ,a�,e(� DE , NORTON & -FORD, P h o~ Use On x ~ ,~_~~,~ '106~VINE STREET, SU :

423161 Ware" . o, .,3-05 ZIP . a LEXINGTON, KY 40507

43-1952943 Paae6

Related`or exempt Amount Junction Income

Part VIII Relationship of Activities to the Accomplishment of Exempt Purposes (Seepage 34 of the Instructions .) Line Nn . Explain how each activity for which income is reported In Column (E) of Part VII contributed Importantly to the accomplishment of the organization's

exempt purposes (other than by providing funds tar such purposes). 93A PATIENT SERVICE DIALYSIS TRAINING SUPPORT AND EQUIPMENT FOR

INDIVIDUALS WITH END-STAGE OR PERMANENT KIDNEY DISEASE

Y47571 Regarding Taxable Subsidiaries and Disregarded Entities (See cage 34 of the instructions .) A B C D

Name, address, and EIN of corporation, Percentage of Nature of activities Total Income End-ofy ear partnership, or disregarded anti ownershi p interest assets

N/A

'ACHED{JLE A Organization Exempt Under Section 501(c)(3) OMB NO.1SaSODA7

(Form 990 or 980-EZ) (Except Private Foundation) and Section 501(8), 501(I), 501(k), 501(n), or Section 49471atil1) Nonexempt Charitable Trust

owartmml of thertemury Supplementary Information-(See separate instructions.) 2004 Incar,oa Rwanuo smica t MUST be completed by the above organizations and attached to their Farm 990 or 990-E2

ErnplGyGl idunlikullurl number ':� .. . . .

KENTUCKY NEPHROLOGY RESEARCH TRUST INC . 143:1952943 Compensation of the Five Highest Paid Employees Other Than Officers, Directors, and Trustees Soo uugu i of tile in9lrUCliOnS . List each one. n there ore none, inter "NOno' (a) Name and address of each employee paid (o) rue and average nouis onn isiooo o o ponao

par week ~fovOtOd 10 (C) COmpOrl&0110ne','~ e°~°ne~ OCCOunt and other m0~0 than $50.000 nnshlnn M120 nuewnncnn

54,700 .1 5,000 .

---------------------------------

(c) Compensation

--------------------------------------------

Total number of others receiving over M $50,000 for professi o n a l se rvices 423101/ 1 1-24-04 LHA For Paperwork Reduction Act Notice, see the Instructions for form 990 and Form 990-EZ Schedule A (Form 990 or 890-E2) 2004

7

DEBBIE MAssxE uRsE AAMZN

10935 TROY RD ., VERSAILLES, KY T45

VICKI LAWSON SOCIAL WORK

60 CANDLEWOOD CT . NICHOLASVILLE KY 45

JUDITH MASSIE EG . NURSE

6535 JACKS CREEK ROAD, LEXINGTON, KY 40

JAMIE MANSFIELD EG . NURSE

1101 IROQUOIS DR ., MT . STERLING, KY 40

87,ooo .1 5,ooo .

63,700 .1 5,000 .

56,000 .1 5,000 .

.* ,. . Total number of other employees paid over $50,000 . .1 0 - - - --Part 11 :Compensation of the Five Highest Paid Independent Contractors for Professional Services

See page 2 of the Instructions . List each one whether Individuals or thms . It there are none, enter "None .* )

(a) Name and nddioss o1 ouch Independent contractor paid mole than $50,000 (D) Typo of service

NONE

--------------------------------------------

--------------------------------------------

--------------------------------------------

< . .. .

13 0 An organization that is not controlled by any disqualified persons (other than foundation managers) and supports organizations described in (1) lines 5 through 12 above ; or (2) section 501(c)(4), (5), or (6), it they meet the test of section 509(a)(2) . (See section 509(a)(3) .)

Provide the following information about the suooorted organizations . (See oaae 5 of the instruclfons .l

(b) Line number from above (a) Name(s) of supported organization(s)

and operated to test for public safety Section 509(a)(4) (See page 5 01 the instructions is U an 423111 iz-oa-oa Schedule A (Farm 990 or 990-E2) 2004

8

ScheduIe A Form 990 or 990-EZ) 2004 KENTUCKY NEPHROLOGY RESEARCH TRUST INC . 43-1952943 Paige 2

Part 111 Statements About Activities (See page 2 of the instructions .) Yes No

1 During the year, has the organization attempted to influence national, stale, or local legislation, including any attempt to Influence public opinion on a legislative matter or referendum) It Y85; enter the total expenses paid or Incurred In connection with the lobbying activities " E $ (Must equal amounts on line 38 . Pert VI-A, or line i of Part VI-B .) 1 X Organizations that made an election under section 501(h) by tiling Form 5788 must complete Part VI-A . Other organizations checking 'Yes ; must complete Part VI-B AND attach a statement giving a detailed description of the lobbying activities . ~ - . ., .,

2 During the year, has the otganlratton, either clhectry or Indirectly . engaged in any of the following acts wills any substantial contributors, trustees, directors, officers, Creators . key employees, or members of their tnnililoo, or with any taxable organization with which any each n - poison isAHi111lOd X18 8n officer, director, trustee . n1 ;1l0iity owner, or principal beneficiary? (II lh0 c1n3wOr f0 any quOSllOn 1s "VOS ." attach o dofcdlod stntomont oxplnlnlng tho tmnsocfJons.)

o Sale . exchan ge, or leasin g o1 prope rty? 2a . . . . . . . ., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b Lending of money or other extension o1 Credit? ������ . � . ., ., . . � , . . . . . . 2b

t Furnishing of goods, services . or facilities? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d Payment o1 compensation (or payment or reimbursement of expenses it more than $1,000)? SEE� , PART , V,,, FORM . 990. . . 2d X

e Transfer of any part o1 Its Income or assets? , ., . . . . . � .� ., . ., .� , . . . �� . ., �� � , . . ����� . ., .�� , . ., ���� . . . . ,

3 a Do you make grants for scholarships, fellowships, student loans, etc.? (It Yes; attach an explanation of how you determine that recipients quality to receive payments .) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~ 9a X

h Do you have a section 403(b) annuity plan for your employees? , ., ., ., . ., . ., . � , . � ., .��� , . . ., . . .�� , . . . . . .���� , . . . . .�� , .�� .��� ., ., . � ��� ., .���� , 311 K

4 a Did you maintain any separate account for participating donors where donors have the right to provide advice on the use or distribution o1 funds? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4e

b Do you provide credit counseling, debt management, credit repair, or debt negotiation services? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ 4b ~X

°Pa0%IX' Reason for Non-Private Foundation Status See pages 3 through 6 of the Instructions .)

The organization is not a private foundation bemuse It i, ; (Please check only ONE applicable box .) 6 ~ A church, convention of churches . or association o1 churches . Section 170(b)(1)(A)(f) . 8 ~ A school . Section 170(b)(1)(A)(it) . (Also complete Part V .) 7 0 A hospital or n cooperative hospital service organisation . Section 170(b)(1)(A)(iii) . 8 0 A Federal, state . or local government or governmental unit. Section 170(b)(1)(A)(v) . 9 0 A medical ros0arch organization operated in conjunction with a hospital . Section 170(b)(1)(A)(ill) . Enter the hospital's name, city,

and state 10 a An organization operated for the benolit o1 a college or university owned or operated by a governmental unit . Section 170(b)(1)(A)(iv) .

(Also complete the Support Schedule in Part IV-A .) 11a 0 An organization (hat normally receives a substantial part of it support from a governmental unit or t rom the general public .

Section 170(b)(1)(A)(vi). (Also complete the Support Schedule in Past IV-A .) 11b 0 A community trust . Section 170(b)(1)(A)(vi) . (Also complete the Support Schedule in Part IV-A .) 12 FT An organization that normally receives : (1) more than 331/3°/a of its support from contributions, membership tees, and gross

receipts from activities related to its charitable, etc ., functions - subject to certain exceptions, and (2) no more than 331(3% of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2) (Also complete the Support Schedule in Part IV-A )

4ch8duIeA(Foim99Oorg9O-EZ)2OO4 KENTUCKY NEPHROLOGY RESEARCH TRUST, INC . 43-1952943 Pago 3 Pan IV-A Support Schedule (Complete only R you chocked a box on line 10, 11 . or 12.) Uso cash mothod of accounting .

Note: You Muse the womsheet in the Instructions for con~~ertln from the accfual to the cash method of accountino . _I

-calendar year (or fiscal

_77~b;72, I (d) 2000 (e) Total bollf ning In) . . . . . . . . . . l4 (a) 2003 _ FAr 15 tiiiis~%fgtanins;anoconlef(libuillions I .A

Ad ( rint Inrl) rl

nemsta grants . See line 28 .1 __ . 0 .

1,425 . 0 .1 0 .1 4,758 .

- 0 . 0 .1 0 .1 19 Net Income from unrelated busines!

activities not Included In line 18 20 Tax revenues leviedTo-rthe -_

organization's benefit and either paid to it or expended on Its behalf

21 The value of services or facilities furnished to the organization by a governmental unit without charge . Do not include the value of services or facilities generally furnished to the public without charge . . . . . . . . .

22 Other income . Attach a schedule . Do not Include gain or (loss) from sale of capital assets . . . . . . . . . . . . . . .

23 Total of lines 15 through 22 . . . . . . 24 Line 23 minus line 17 . . . . . . . . . . . . . . .

0 .

0 .1 0 .1 0 .1 0 .

0 .1 0 .1 0 .1 0 .

.1 0 . ~ f ~ ~~ .

4,758 . 25 Enteil%ofllno23 . . . . . . . . . . . . 1 19,1 5 .1 2,390 .1 26 Organizations described an lines 10 or 11 : a Enter 2% of amount In column (e), line 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . lo-b Prepare a list for your records to show the name of and amount contributed by each person (other than a governmental

unit or publicly supported organization) whose total gifts for 2000 through 2003 exceeded the amount shown In line 26a. Do not file this list with your return . Enter the total of all these excess amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c Total support for section 509(a)(1) lost : Enter line 24, column (0) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100. d Add: Amounts from column (a) for lines : 18 19

a N/A

b c N/A

22 26b . . . . . . . . . Dol. 26d N/A

e Public support (line 26c minus line 26d total) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110. 268 N/A

I Public support percentage (line He (numerator) divided by line 26c (denominator)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ 1 261 N/A % 27 Organizations described on line 12 : a For amounts included in lines 15,16, and 17 that were received from a "disqualified person,' prepare a list for your

records to show the name of. and total amounts received In each year from, each 'disqualified person .' Do not file this list with your return . Enter the sum of such amounts for each year : (2003) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 (2002) . . . . . . . . . . . . . . . . . . . . . . . . . . . .p m . (2001) (20 0) . . . . . . 0 . 0 . . . .

b For any amount Included In line 17 that was received from each person (other than Visqualified persons"), prepare a list for your records to show the name at. and amount received for each year, that was more than the larger of (1) the amount on line 25 for the year or (2) $5,000 . (include In the list organizations described in lines 5 through 11 . as well as Individuals .) Do not f Ile this list with your return . After computing the difference between the amount received and the larger amount described in (1) or (2) . enter the sum of these differences (the excess amounts) for each year (2003) . . . . . . . . . . . . . . . (2002) . . . . . . . . . . . . . 187,.5.~.Q, . (2001) . . . . . . . . . . . . . . . . . . . . . . . . . . . (2000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c Add: Amounts from column (9) for lines : 15 16 17 2,144,654 . 20 21 DO- 27c 2,144,654 .

d Add: Line 27a total . . . 0 . and line 27b total 1,043,880 . 10- 27d 1,043,880 .

0 Public support (line 27c total minus line 27d total) . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ 27e 1 r 1002 774 .

I Total support for section 509(a)(2) test: Enter amount on line 23, column (e) 27f 2,149, 412 . AMMERMINA W. V. g Public support percentage Oine 27e (numerator) divided by line 27f (denominator)) 110- 2vin 51 .2128% 0. ~_ I In Investment income percentaAe Pine 18, column (e) (numerator) divided by line 27f (denominatod)

27h 1 .2214%

28 Unusual Grants : For an organization described in line 10, 11 . or 12 that received any unusual grants during 2000 through 2003, prepare a list for your records to show, for each year, the name of the contributor, the date and amount of the grant, and a brief descnption of the nature of the grant Do not file this list with your return . Do not include these grants in One 15

423121 12-03.04 NONE Scwt" A (Fwm 990 or OW E-4 2004 9

10 S-1 ; pts from admissions, merchandise Sold or services perfolmea . or tillolshlog of facilities In any activity that Is related to the oigintzation's charitable, otc . . purpose . . . . . . . . . . . .

18 Gross Income from Interest, dividends, amounts received from payments on securities loans (Sec-tion 5112(a)(5)), rents, royalties, and unrelated business taxable Income (loss section 511 taxes) from businesses acquired by the organization after June 30.1975 3

- 0 . 0 . U . 0 . 0 . 0 .

7,529 . 0 . 0 . 2,144,654 .

34 a Does the organization receive any financial aid or assistance from a governmental agency? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Has the organization's right to such aid ever been revoked or suspended? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

It you answered "Yes* to either 34a or b, please explain using an attached statement. 35 Does the organization codify that It has complied with the applicable requirements of sections 4 .01 through 4.05 of Rev . Proc. 75-50 .

1975-2 C B . 587 . covering racial nondiscrimination? It'No,'attach an explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . Schedule A (Form 990 of 990-EZ) 2004

423131 , 1 _24-04

10

SqheduIeAjForm990or990-EZ)2004 KENTUCKY NEPHROLOGY RESEARCH TRUST, INC . 43-1952943 Page4 Private School Questionnaire (See page 7 of the instructions .) N/A (To be completed ONLY by schools that chocked the box on line 6 In Part W)

29 Does the organization have a racially nondiscriminatory policy toward students by statement In its charter . bylaws, other governing Yes No

instrument . or In a resolution of its governing body? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29-- 30 Does the oroanization include a statement of its racially nondiscriminatory policy lowaid students In all its brochures . catalogues . --

and other written communications with the public dealing with student admissions . wootams . and Scholarships? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 31 Has the organization publicized its racially nondisciiininatory policy through newspaper or broadcast media during Ole period of

solicitation loi students . oi during the iogislialion period it It has no solicitation program, In a way that makes the policy known - to all pails of the general community It soives? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 It *Yes .' please doscilbo : it *No .* please explain . (11 you need moio cpace . attach a sopainto statement .)

446

32 Does the organization maintain the following :

a Records Indicating the racial composition of the student body, faculty, and administrative staff? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b Records documenting that scholarships and other financial assistance are awarded on a racially nondiscriminatory basis? . . . . . . . . . . . . . . . . . . . c Copies of all catalogues . brochures . announcements . and other written communications to the public dealing with student

admissions, programs, and scholarships? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d Copies of all material used by the organization or on its behalf to solicit contributions? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If you answered 'No'lo any of the above . please explain . (It you need more space, attach a separate statement.)

"R" QN, 4-", 33 Does the organization discriminate by race In any way with respect to : iM - = Students' rights or privileges? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33a Admissions policies? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33b

c Employment of faculty or administrative staff? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

. . . . . . 33c d Scholarships or other financial assistance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33d e Educational policies? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33e 1 use of facilities? . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 g Athletic programs? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330_ h Other extracurricular activities? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33h

If you answered 'Yes' to any of the above, please explain . (11 you need more space, attach a separate statement .) I 1 -1.,

10, a I I it IhA ninnniVItinn haInrim Innn ntfilinlArl fflonn- Chark 10,

(a) A fii idled group

totals

N/A

Caution : If there Is an amount on eltherfine 43 orfine 44, You must rile Form 4720.

4-Year Averaging Period Under Section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns

below. See the Instructions for lines 45 through 50 on page 11 of the Instructions .)

Lobbying Expenditures During 4-Yoar Averaging Porlod N/A

Calendar year (or 18) (b) W (d) (0) fiscal year beginning In) 11111. 2004 2003 2002 2001 Total 45 Lobbying nontaxable

amount . . . . . . . . . . . . . . . . . . . . . . . . 0 . 46 Lobbying coiling amount

(150% of line 45(o)) . . . . . . . . . 0 . 47 Total lobbying

expenditures . . . . . . . . . . . . . . . . . . 0 . 48 Grassroots nontaxable

amount . . . . . . . . . . . . . . . . . . . . . . . . 0 . 49 Grassrools coiling amount film

(150% of line 48(e)) . . . . . . . . . 0 . 50 Grassrools lobbying

exRenditures . . . . . . . . . . . . . . 0 . k'PiWV-l;W Lobbying Activity by Nonelecting Public Charities

(For reporting only by organizations that did not complete Part VI-A) (See page 11 of the instructions During the year, did the organization attempt to influence national. state or local legislation, including any attempt to

Yes No Amount influence public opinion on a legislative matter or referendum, through the use of: X a Volunteers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b P X aid staff or management (include compensation in expenses reported on lines c through h.) c Media advertisements . X d Mailings to members. legislators, or the public . . . . . . . . . . . . . . . . X e Publications . or published or broadcast statements X I Grants to other organizations for lobbying purposes X g Direct contact with legislators, their staffs, government officials . or a legislative body X h Rallies. demonstrations, seminars, conventions, speeches, lectures, or any other means X I Total lobbying expenditures (Add lines c through h ) . 0 . F5 i ~, -TTZ,

11 'Yes* to any of the above, also attach a statement giving a detailed description of the lobbying actfvdies 423141 11-24-04 Schedule A (Form 990 or 990-EZ) 2004

Schedule AjFoim 990 01990-EZ) 2004 KENTUCKY NEPHROLOGY RESEARCH TRUST, INC . 43-1952943 Page 5 Lobbying Expenditures by Electing Public Charities (See page 9 of the instiucOons .) N/A (To be comoleted ONLY bv an elicible oinanizallon that filed Form 5768)

On e terni'excenditures' means amounts paid of Incurred .

36 Total lobbying onendituios to Influence public opinion (giasstools lobbying) .- ._ . .. . . . . . . . . .. . . .. . 37 Total lobbying expondilusos to Influence a legislative body (direct lobbying) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Total lobbying expenditures (add lines 36 and 37) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Other exempt puiposo oxpondituios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Total exempt purpose expenditures (add lines 38 and 39) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Lobbying nontaxable amount . Enter the amount from the following table -

It the amount on llno 40 Is - The lobbying nontaxable amount Is - Not over $500,0D0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20% of the arriount an line 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Over $500.ODO but not over $1 .01M.000 . . . . . . . . . . . . $100,000 plu3 15% of the oxcc= over $500.000

Over S1 .0D0,0D0 but not over $1 .500,0D0 . . . . . . . . . $175,000 plua 10% of the axom over $1 .000.ODO . . . . . . Over $1 .500 .000 but not over $17,000,000 . . . . . . . . . $225,ODO plu3 5% of the oxc= over $1 .5W.000 . . . . . . Over $17.00D.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 .000,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

42 Grassroots nontaxable amount (enter 25% of line 41) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Subtract line 42 from line 36 . Enter -0- If line 42 Is more than line 36 44 Subtract line 41 from line 38 . Enter -0- If line 41 Is more than line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

38

IN TO be Cut lipiolOd 101 ALL electing organizations

(a) (d) Line no .1 Amounitbinvolved Name of noncharitab(lVexempt organization Description of transfers, transactions, and sharing arrangements

52 a Is the organization directly or Indirectly affiliated wilh, or related to, one or more tax-exempt organizations described In section 501(c) of the Code (other than section 501(c)(3)) or In section 527? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111o- M yes M No

12

SCheduIeAjForm990or99D-EZ)2004 KENTUCKY NEPHROLOGY RESEARCH TRUST, INC . 43-1952943 Pages LPart VIJI Inforrnation Regarding Transfers To and Transactions and Relationships With Noncharitable

Exempt Organizations (Soo page I I of the instructions .) 51 Did the reporting organization directly or Indirectly engage in any of the following with any other organization described in section

501(c) of the Code (other than section 501(c)(3) organizations) or In section 527 . ielating to political oiganizations? a Transfers from the reporting organization to a nonchaillable exempt organization of: Yes No

(1) Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X (11) Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X

b Other tran,,pctlons- (1) Sales or exchanges of assolss with 3 nonchatitibio exempt organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _A01 X (11) Putchasos of assets liorn a nonchwitablo exempt oiganimion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . -4 if, - X (111) Rental of facilities . oquipmont, or otholassels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A L11) X (lv) Reimbursement if(angemonts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Av -V) - X (v) Loans or loin guarantees . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -~(-V) X

(vi) Performance of services or membership or fundralsIng solicitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b(vl) X c Sharing of facilities . equipment, mailing lisis . other assets, or paid employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

' . . . . . . . . . -- - . . . ", """, X

d 11 the answer to any of the above Is 'Yes,* complete the following schedule. Column (b) should always show the fair maiket value of the goods, other assets, or services given by the reporting organization . It the organization received less than fair market value in any transaction or sharina arranoement . show In column M the value of the noods . other assets . or services received : N/A

Bus % ReduJIon In Basis For Accuffaitted Current Amount 01 Excl I Basis I Depreciation I Depred-allen I Sec 179 1 Depreciation

As t Date I Lte I Unadiusted so Description Acquired I h1ethod I N 0 Ufa N06 Cost Or Basis

2A.DS 5 .00 17 1,099 . 1,099 . 330 . 220 . -"a tg A1 j

2ADS 5 .00 17 265 . --- ------- ;L --- ----------- EMIIIHP .11~

2ADS 5 .00 17 275 . 275 . 73 . 64 . P.1 I, ltq~

a 2ADS 5 .00 17 910 . 4 1" --2-4 - - ---- ------ - -------- ------ - ---- - :12,12 .

2ADS 5 .00 17 530 . 530 . 132 . 106 . - ------ -- - --------- -"

.3 ~ 7rl 2 ADS, 5 .00 17 2' 75 '566 . ---- - --- -- - - ----- ---------- - ---

2ADS 5 .00 17 2,250 . 2,250 . 600 . 450 . T. 'i 7, ilm~ ~7 N, K

17 2 5 . - -1.1 i~' 11 lu;'~ ,

-

.2134 ...... . .. 175 . Y154 1 1 . -- - ---. . . . .... . . . . . ...

3ADS 5 .00 17 3,165 . 3,165 . 422 . 1 633 . - --- ------r, -: -

N5

W

.4. mnn~, Ann n n 117 ryn N~

1 ELL PC

H 00 M~ V---.

3HP PRINTER RIM?--~t'-&Vg?~'-ffll UP

e Qff;'~-CLEV'19T T NURSES STATION 5RELOCATION

Ng *'~"~'6 D E, F Is "~ "IN JIBR, M-Alf IL

7ELITE II EKG MACHINE R -0

PHOT'91111q~T ei-~Mft-w . H

9COMPUTERS 211, V-2,

.. . .. . . . .

11BILLING SOFTWARE 091903ADS 5 .00 17 3,000 . 3,000 . 750 . --- - -------- W4

AN NO '00o 13- ETS 2, .66 :. .114 . A, N 0 T J~ I 'I

13DFFICE FURNITURE 072403kDS 5 .00 17 1,247 . 1,247 . 104 . _2 4 9 . 4 H-w-:71 7~1- "T.-M E"" IMERHON ZYST,Et - - : i 4! - , '. "~ , E~l 0 7.- 1,09' 162 . Xt - ~' 'k ,

1%ON COMPETE AGREEMENT 080102 15M 43 60,000 . 60,000 . 5,667 . 4 4,000 .

g -

,

w -24 R 3\4 5- 00 . i() ATM A '-, MINE- N- 0 . n" TOTAL 990 PAGE 2

DEPR 81,697 . 0 . 81,697 . 8,963 . 0- .~ 8,354 . I omm" , .... - k~ wgr~ ~VZ77 -77 g "01 All NO

428102 10-08-04 A - Asset cbsposed ITC. Section 179, Salvage. Bonus. C4:nunescW Ftevite2Mion Deduction

13

2004 DEPRECIATION AND AMORTIZATION REPORT FORM 990 PAGE 2 990

KENTUCKY NEPHROLOGY RESEARCH TRUST, INC . 43-1952943

FORM 990 OTHER EXPENSES STATEMENT I

573 . 573 .

846,617 . 714,395 . 132,222 . TOTAL TO FM 990, LN 43

OPERATE DIALYSIS CLINICS, PROVIDE CARE TO PATIENTS WITH CHRONIC RENAL FAILURE, RESEARCH KIDNEY DISEASE, PROMOTE TREATMENT OF KIDNEY DISEASE

STATEMENT(S) 1, 2 14

DESCRIPTION

AMORTIZATION BANK CHARGES BAD DEBTS BILLING SERVICES COMPUTER NETWORK CONTRACT LABOR DIALYSIS SUPPLIES INSURANCE LAB EXPENSE LICENSES AND FEES MEALS AND ENTERTAINMENT MEDICAL DIRECTOR FEE MINOR EQUIPMENT PATIENT ACTIVITIES PROFESSIONAL FEES DUES AND SUBSCRIPTIONS UNIFORMS MEDICAL WASTE CONTRIBUTIONS MISCELLANEOUS EXPENSES

I W) (D) k 11 (C) PROGRAM MANAGEMENT

TOTAL SERVICES AND GENERAL FUNDRAISING

4,000 . 4,000 . 281 . 281 .

12,647 . 12,647 . 90,736 . 90,736 . 11199 . 11199 . 1,609 . 1,609 .

635,037 . 635,037 . 9,852 . 631 . 9,221 . 6,711 . 6,711 . 1,996 . 1,996 .

3,725 . 3,725 . 51,865 . 51,865 .

84 . 84 . 3,048 . 3,048 . 7,737 . 7,737 .

680 . 680 . 42 . 42 .

2,412 . 2,412 . 12,383 . 12,383 .

FORM 990 STATEMENT OF ORGANIZATION'S PRIMARY EXEMPT PURPOSE STATEMENT 2 PART III

EXPLANATION

15 STATEMENT(S) 3

KENTUCKY NEPHROLOGY RESEARCH TRUST, INC . 43-1952943

FORM 990 DEPRECIATION OF ASSETS NOT HELD FOR INVESTMENT STATEMENT 3

ACCUMULATED DESCRIPTION OTHER BASIS DEPRECIATION BOOK VALUE

DELL PC 11099 . 550 . 549 . HP PRINTER 265 . 133 . 132 . HP PRINTER 275 . 137 . 138 . OFFICE PRINTS 910 . 455 . 455 . NURSES STATION RELOCATION 530 . 238 . 292 . DEFIBRILLATOR 2,825 . 1,319 . 1,506 . ELITE 11 EKG MACHINE 2,250 . 1,050 . 1,200 . PHOTOMETER 877 . 409 . 468 . COMPUTERS 3,165 . 1,055 . 2,110 . BILLING SOFTWARE 3,000 . 750 . 2,250 . BILLING SOFTWARE 3,000 . 750 . 2,250 . FILING CABINETS 570 . 180 . 390 . OFFICE FURNITURE 1,247 . 353 . 894 . TELEPHONE SYSTEM UPGRADE 810 . 271 . 539 . NON COMPETE AGREEMENT 60,000 . 9,667 . 50,333 . PHOTOMETER 874 . 0 . 874 .

TOTAL TO FORM 990, PART IV, LN 57 81,697 . 17,317 . 64,380 .

F.nn 4562 Departn=1 of vto Trwavury Intamcd Rovenuo Sarvica

Narneo) rhown an rWum

OMB No. 1545-0172

Depreciation and Amortization 990 2004 (Including Intoffnation on Listed Property) Att=hrrdmt

110- Soo separate instructions. Pilo- Attach to your tax return . SMucnca No . 67 1 Business at octIvIty to which 06 form rolate; identifying number

(b) Month and (c) crisis for dopmdadon vow placad (t)uoIne3nAnvaatrncnt uaa

In norvico only - too Instructions)

.44

(d) P=400v I (a) convention 1 (4 Method 1 (9) oaproatation cloduallon (0) CUM51fication of prop"

25 yrs S/L 27.5 yrs . MM S/L 27 .5 yrs . MM S/L 39 yrs MM S/L

MM SIL 2004 Tax Year Using the Alternative Depreciation

874 . VARIES HY S/L 12 yrs. S/L 40 virs. MM S/L

h Residential rental property

20a b 1 c 4

1,~'p ,~jt'ZIM, Summary (See instructions.) 21 Listed property . Enter amount from line 28 22 Total . Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g) . and line 21

Enter here and on the appropriate lines of your return . Partnerships and S corporations - see in! 23 For assets shown above and placed in service during the current year, enter the

portion of the basis attributable to section 263A costs 231 4 '625' 1,-15-04 LHA For Paperwork Reduction Act Notice, see separate instructions.

16 Form 4562 (2004)

KENTUCKY NEPHROLOGY RESEARCH TRUSTe INC .JFORM 990 PAGE 2 Part.1 I EloctionTo Exponso Certain Proporty. Undor Soction 179 Nato: 11you have any 11311od propoily.completo Part Vboloio yo 1 Maximum amount . Soo Instructions for a highor limit for cortaln buolnessez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Total coot of ooction 179 proporly placod In carvico (coo Inotructiono) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Throshoid coot of ooction 179 proporty boforo roduclion In Ilinitallon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Roductlon in IlmItation . Subtract lino 3 from llno 2 . If zoro or loco, ontor .0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 00IIA? 1IM119-1101% to, IM year. OubtrV01 11no 4 horn On* 1 . it zero or Io*3. antv -o-, it ninirlao filing roparptoy . ooo Inotnoaftne . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a co) 0owpilon of prop" I (b)Cwt(trualneaouticonry) I (G) Glaclod coot

7 Listed property . Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7 1 8 Total elected cost of section 179 property . Add amounts In column (c), lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Tentative deduction . Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10 Carryover of disallowed deduction from line 13 of your 2003 Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Business Income limitation . Enter the smaller of business income (not less than zero) or line 5 . . . . . . . . . . . . . . . . . . . . . . . . . 12 Section 179 expense deduction . Add lines 9 and 10 . but do not enter more than line 11 . . . . . . . . . . . .

.. . . . . . . . . . . . .

13 Carryover of disallowed deduction to 2005 . Add lines 9 and 10 . less line 12 . . . . . . . . . . . . Ill- F13 Note : DD not use Pan 11 or Part /// below for listed DroDerty. Instead. use Part V.

14 spatial depreciation allowance tar quoliflod property (other Ulan listed Proi)&M Plac0d In OMICO during the tax year(wo, Instructions) . . . .. . . . . . . . . . . .

15 Property subject to section 168(00) election (see Instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Other dentreclation flncludina ACRSI (sco Instructionsl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17 MACRS deductiono for nZoole placed In solvico In tax years beginning before 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 If you are electing under soction 168(1)(4) to group any assets placed In service during the tax

7

1

43-1952943 poll 1 .

A~ VW10 zi~

I Nonresidential real property

Section C - Assets Placed in Service

4,354 .

Form 4564 (2004) Page 2 Learl Listed Property (Include automobiles, certain other vehicles, cellular telephones . certain computers. and property used for entertainment,

recreation, or amusement ') Note : For any vehicle for wMich you are using the standard rnileage rate or deducting lease expensp, complete only 24A 24b, coAlmns (a)

through (c) of Section A, all of Section A and Section C If goplicable.

Section A - Depreciation and Other Information (Caution : Sao Instructions for limits forp engeraUtOMOb/163.1

- F==3-24a Ou yuu iiavif oviOnLo to SUPI)OR ilia bu~in&,~)A'VoAmolit UL~a f.W11100 Y.S K. 24b if - !) .- ILI 1hu UVIUU11ce w(literi*i yes L---4 No

(a) (b) (a) (d) (4 (9) (h) (1)

Type of properl Date Buslooss/

Recovery Method/ Depieclation Elected Cost OF section 179 list vehicles flisr) placed In Investment

olnei basis L(b.

Y) " poilod Convention deduction service usoporcentago---- cost

25 Spocini depreciation ollowanco for qualiflod liotod proporly placod In corvico during the tckx

voor ond ucod more than 50% In n aunliflod buninons U30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

buolno3a. uoo:

42 Amortization of costs that benins dunno vour 2004 tax

4,000 . Form 4562 (2004) 41925W 11- 15-04

17

27 Prooortv used 50% or less In a

28 Add amounts in column (h), lines 25 through 27 . Enter here and on line 21, page 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 28 1 1 29 Add amounts In column Of , line 26 . Enter here and on line 7, page 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 29

Section B - Information on Use of Vehicles Complete this section for vehicles used by a sole proprietor, partner, or other 'more than 5% owner,* or related person . If you provided vehicles to your employees, flrst answer the questions in Section C to see If you meet an exception to completing this section for those vehicles.

(a) I (b) I (c) I (d) I (e) 1 (0 30 Total businessAnvestment miles driven during the

year (do not Include commuting miles) . . . . . . . . . . . . . . . . . . 31 Total commuting miles driven during the year 32 Total other personal (noncommuting) miles

driven . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Total miles driven during the year.

Add lines 30 through 32 . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 34 W03 the vehicle available for personal use

during off-duty houm? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Was the vehicle used primarily by a more

than 5% owner or related person? . . . . . . . . . . . . . . . . . . 36 Is another vehicle available for personal

Section C - Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine If you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons . 37 Do you maintain a written policy statement that prohibits all personal use of vehicles, Including commuting, by your Yes N

employees? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your

employees? See Instructions for vehicles used by corporate officers, directors . or I % or more owners 39 Do you treat all use of vehicles by employees as personal use? . . . . . . . . . . . . . . . . . . 40 Do you provide more than five vehicles to your employees, obtain information from your employees about

the use of the vehicles, and retain the information received? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Do you meet the requirements concerning qualified automobile demonstration use? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note : If your answer to 3 7, 38, 39, 40, or 41 is "Yes, * do not complete Section B for the covered vehicles . FORT W j1,1 Amortization

(a) (b) (c) (d) (e) M Devulption of costs Dawnwtizaton Ainortizable Code knwlaaton Arrvortization

I begim I amount soction Mflodorperosime for this year

43 Amortization of costs that began before your 2004 tax year 44 Total . Add amounts in column (Q. See instructions for where to

Form 000068 (Rev . December 2004) Dopartmont of tno Trowury int=rj Mwenuo GWA00

Application for Extension of Time To File an Exempt Organization Return OMB No. 1645-1709

01 File a for each return .

423831 01-10-05

0 If you are filing for on Automatic 3-Month Extension, complete only Part I and check this box . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0. t, !" ';CU = "0., an Qu"Gma'.'c" cannpiclo : : (~'n p4uo 2 (A 01 ;j i'ville) . Do not complete Part 11 unless you have already been granted an automatic 3-month extension on a previously filed Form 8888 .

Automatic 3-Month Extension Of Time - Only oubmit original (no coploo noodod)

Form 990-T corporations requesting an automatic 6-month extension - check this box and complote Part I only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

All other corporations OncludIng Form 990-C Mors) must uso Form 7004 to roquost on oxtonsion of t1M0 to 1110 Incomo tax roturns. Partnorships, REMICs, and tivats must use Form 8736 to roquost on aKtonslon of firm to filo Form 1065, 1066, or 104 1. Electronic Filing (o-filo) . Form 8868 can be filed electronically If you want a 3-month automatic extension of time to file one of tho returns noted below (6 months for corporate Form 990-T filom) . However, you cannot f1lo It electronically If you want the additional (not automatic) 3-month extension, Instead you must submit the fully completed signed page 2 (Part 11) of Form $866 . For more details on the electronic filing of this form, visit www.irs-govIeffle. Type or Name of Exempt Organization Employer Identification number print

KENTUCKY NEPHROLOGY RESEARCH TRUST, INC . 43-1952943 F110 by Mo duo date for Number, street, and room or suite no. If a P.O. box, see Instructions . filing your 1101 WINCHESTER ROAD, NO . 200 Mtum . soo Instructions . City, town or post office, slate, and ZIP code. For a foreign address, see instructions .

LEXINGTON, KY 40505

Check type of return to be filed (file a separate application for each return) .

Form 990 Form 990-T (corporal Ion) Form 4720 Form 990-BL Form 990-T (sec . 401 (a) or 408(o) trust) Form 5227 Form 990-EZ Form 990-T (trust other than above) Form 6069 Form 990-PF Form 1041 -A Form 6870

" The books are in the care of 10- DAVID MARSHALL TelephonaNo.lo, 270-684-2110 FAX No. 10-

" If the organization does not have an office or place of business In the United States . check this box . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. " If this Is for a Group Return, enter the organization's four digit Group Exemption Number (GEN) . If this Is for the whole group, check this box 00, = . If It Is for part of the group, chock this box Pil- = and attach a list with the names and EIN9 of all members the extension will cover.

11 1 request an automatic 3-month (6-monlho for a Form 990-T corporation) extension of time until -AUGUST 15, 2005 to file the exempt organization return for the organization named above. The extension Is for the organization's return for: CE calendar year 2 0 0 4 or = tax year begfrinino and ending

2 If this tax year is for less then 12 months, chock reason : = Initial return = Final return Change In accounting period

3a If this application Is for Form 990-BL, 990-PF, 990-T . 4720 . or 6069, enter the tentative tax, less any nonrefundable credits . See Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

b If this application Is for Form 990-PF or 990-T, enter any refundable credits and estimated tax payments made . Include any prior year overpayment allowed as a credit . . . . . . . . . . $

c Balance Due . Subtract line 3b from line 3a . Include your payment with this form, or, if required, deposit with FTD coupon or, If required, by using EFTPS (Electronic Federal Tax Payment System) . See Instructions . . . . . . . . . . . . . . . . . . $ N/A

Caution . If you are going to make an electronic fund withdrawal with this Form 8868, see Form 8453-EO and Form 8879-EO for payment instructions .

LHA For Privacy Act and Paperwork Reduction Act Notice, see instructions . Form 8868 (Rev 12-2004)

BY.-Director Dale Alternate Mailing Address - Enter the address if you want the copy of this application for an additional 3-month extension returned to an address different than the one entered above.

Name DEAIN, DOOIRTON & FORD CPA'S

Type Number and street (include suite, room . or apt. no.) or a P.O . box number or print 106 W . VINE STREETt SUITE 600

City or town, province or state, and country (including postal or ZIP code) 423R32 (11-10-05 LEXINGTON_L_ ]~Y 4 0 5 0 7

Form 8868 (Rev 12-2004)

form 8868 (Rev . 12-2004) Page 2

9 If you ard filing for an Additional (not automatic) 3-Monlh Extension, complete only Part 11 and check this box . . . . . . . . . . . . 11. Note: Only complete Part 11 if you have already been granted an automatic 3-im Ih extension an a proviously filed Form 8868 .

pn page 11, 0 11 you a a filin for an Automatic 3-Monlh Extonslq~n, coTp~alo onl~ Part I L a dditional (not automatic) 3-Month Extension of Time - Must fil Original and One Copy.

Name of Exempt Organization Employer identification number Type print. KENTUCKY NEPHROLOGY RESEARCH TFUSTj. INC . 43-1952943 1`110 t)Y Wo 6xiondat! Numbcr . street, and room or nuito no . it n P.O . box, ooo Inatructiono . For IRS uso only duedolefor 1101 WINC1,1ES1111311 ROAD NO . 200 1111fto Mum Ben City . town or post offico, state, and ZIP coclo. For a torsion addroon, coo Inalructiono.

""&EXINGTON KY 40505 Chock type of return to be filed (Filo a sciparato application for each roturn) :

Form 000 C] Form omrm 0 Form 900-T (coc . 401(a) or 408(o) trunt) CJForrnI041-A CD Form 5227 0 Form 0870 Form 990-13L 0 Form 990-PF ED Form 990-T (irtial other than abovo) Form 4720 Form 6OG9

STOP: Do not complete Part 11 it you were not already granted an automatic 3-month extension on a previously filed Form 8060.

" The books are in the careof o- DAVID MARSHALL TolophoneNo .0, 270-684-2110 FAX No . 10,

" It the organization does not have an office or place of business In the United States, check this box ., . . . . . . . . . . . . . . . " If this Is for a Group Return, enter the organization's four digit Group Exempt Ion Number (GEN)

-- . If this is for the whole group . check this

box 10, 0 . If it Is for ppftof the.gropp check this box 01 Ej and attach a list with the namaUnd EIN9 of ail members the extension is for . 4 1 request an additional 3-month extension of lime until NOVEMBER 15, 2005 . 5 For calendar year 2 0 04 . or other tax year beginning and ending 6 It this tax year Is for less than 12 months . chock reason : ilial return Final return Change In accounting period 7 State In detail why you need the extension

ADDITIONAL TIME IS REOUIRED TO GATHER 1NF50NT--I-0N NECESSARY TO COMPLETE AND ACCURATE RETURN .

Ba If this application is for Form 990-BL, 990-PF. 990-T . 4720. or 6069 . enter the tentative tax, less any nonrefundable credits . See Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S

b If this application Is for Form 990-13F. g9o-T, 4720, or 6069, enter any refundable credits and estimated tax payments made . Include any prior year ovorpiyment allowed as a credit and any amount paid previously with Form 8868 . . . . . . 1 . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

c: Balance Due . Subtrncl line 8b from line 8o . Include Your payment with this form, or. if required . deposit with FrD coupon or ItLo using EFTPS (Electronic Federal Tax Payment Syqj222LSoe!nstructions . . . . . . . . . . . . . . . . . . . . . . . . S N/A

Signature and Verification Under penalties of poilmy . I declare that I have examined this foini, including accompanying schodulos and statements . and to the best 01 my knowledge and belief . 11 Is two . correct . and c I d a thorized to prepare this foun . sifinalul 11110. ritio Ili- CPA Date 10, /cgy

Notice to Applicant - To Be Completed by the IRS We have approved thi3 application . Plooso alinch this form to the organization's return .

M We have not approved this application . However. we have granted a 10-day grace period from the later of the date shown below or the due date of the organization'a return (including any prior extensions) . 7his grace period Is considered to be a valid extension of time for elections otherwise required to be made on a timely return . Please attach this form to the organization's return . We have not approved this application . After considering the reasons stated in item 7, we cannot grant your request for an extension of time to file . We are not granting a I D-day grace period . We cannot consider this application because it was filed after the extended due date of the return for which an extension was requested Other-