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        <ExplanationTxt>INSTEDD IS EXEMPT FROM TAXATION UNDER INTERNAL REVENUE CODE SECTION 501(C)(3) AND CALIFORNIA REVENUE AND TAXATION CODE SECTION 23701D. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES PROVIDE ACCOUNTING AND DISCLOSURE GUIDANCE ABOUT POSITIONS TAKEN BY AN ORGANIZATION IN ITS TAX RETURNS THAT MIGHT BE UNCERTAIN. MANAGEMENT HAS CONSIDERED ITS TAX POSITIONS AND BELIEVES THAT ALL OF THE POSITIONS TAKEN BY INSTEDD IN ITS FEDERAL AND STATE EXEMPT ORGANIZATION TAX RETURNS ARE MORE LIKELY THAN NOT TO BE SUSTAINED UPON EXAMINATION. INSTEDD'S RETURNS ARE SUBJECT TO EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES, GENERALLY FOR THREE AND FOUR YEARS, RESPECTIVELY, AFTER THEY ARE FILED.</ExplanationTxt>
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        <ExplanationTxt>THE FORM 990 IS REVIEWED BY THE CHAIRMAN OF THE AUDIT COMMITTEE AND THE CFO AND ANY DISCRPANCIES OR QUESTIONS WILL BE DISCUSSED WITH THE PREPARER AND RESOLVED PRIOR TO FILING THE RETURNS</ExplanationTxt>
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        <ExplanationTxt>THE CONFLICT OF INTEREST POLICY IS DISTRIBUTED TO ALL EMPLOYEES AND BOARD MEMBERS. THE ORGANIZATION HAS PUT IN PLACE A PROCESS TO REDISTRIBUTE AND MONITOR THE POLICY ANNUALLY. THIS IS DONE IN JANUARY OF EACH YEAR FOR ANY NEW EMPLOYEES AND/OR BOARD MEMBERS.</ExplanationTxt>
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        <ExplanationTxt>THE OFFICERS' COMPENSATION IS DETERMINED BY THE BOARD OF DIRECTORS', COMPENSATION COMMITTEE AND COMPARISON DATA. A RESOLUTION IS PASSED ONCE THE SALARIES HAVE BEEN DETERMINED. THE BOARD OF DIRECTORS REVIEWS THE OFFICERS' COMPENSATION ANNUALLY TO DETERMINE IF CHANGES SHOULD BE MADE BASED ON PERFORMANCE, SCOPE OF WORK ADJUSTMENTS AND FINANCIAL RESOURCES AVAILABLE TO ACCOMMODATE ANY INCREASE.</ExplanationTxt>
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