2019-11-14T12:15:26-06:00 2018-12-31 861065772 DELOITTE TAX LLP 555 MISSION STREET SAN FRANCISCO CA 94105 990 2018-01-01 941160950 SRI INTERNATIONAL SRII 6508592000 333 RAVENSWOOD AVENUE MENLO PARK CA 94025 STEPHANIE DEFINO CORPORATE CONTROLLER 6508592000 2019-11-13 1 JOAN S MCMAHON P00966494 4157834000 12.203.115.26 2019-11-13 11:22:39 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 6C9B1A35775087DBDB8A6D25ECA509C7F6C27838 2018 2020-04-17 16:48:07Z STEPHANIE DEFINO 333 RAVENSWOOD AVENUE MENLO PARK CA 94025 414296794 0 X WWW.SRI.COM X 1946 CA WORLD-CHANGING SOLUTIONS MAKING PEOPLE SAFER, HEALTHIER, & MORE PRODUCTIVE THROUGH SCIENTIFIC R&D 10 8 1557 0 41934381 0 64945209 63960292 335976272 332319646 2975159 7863413 1884302 4821482 405780942 408964833 0 0 0 0 248399218 233300189 0 0 0 156125827 174364103 404525045 407664292 1255897 1300541 304618000 315191651 114532621 122703218 190085379 192488433 X SRI INTERNATIONAL CREATES WORLD-CHANGING SOLUTIONS MAKING PEOPLE SAFER, HEALTHIER, AND MORE PRODUCTIVE THROUGH SCIENTIFIC RESEARCH & DEVELOPMENT. 0 0 91299023 17276863 119254642 THE ADVANCED TECHNOLOGY AND SYSTEMS DIVISION (ATSD) MANAGES COMPLEX PROJECTS FOR GOVERNMENT AND NON-GOVERNMENT CLIENTS FROM BASIC RESEARCH TO ADVANCED SYSTEMS AND PRODUCT DEVELOPMENT. THE DIVISION ADVANCES SCIENTIFIC RESEARCH IN DIVERSE AREAS SUCH AS CHEMISTRY, PHYSICS, AND MATERIALS SCIENCE; GEOSPACE STUDIES AND SPACE AND MARINE TECHNOLOGY; SURVEILLANCE AND REMOTE SENSING; APPLIED OPTICS AND SECURE CIRCUITS; AND ROBOTICS, MEDICAL DEVICES, AND NANOTECHNOLOGY.SCIENTISTS, ENGINEERS, AND TECHNICIANS, WORK ON ABOUT 200 PROJECTS PER YEAR, AND ARE ORGANIZED AROUND FIVE CENTERS: ENERGY AND ENVIRONMENT, OCEAN AND SPACE SYSTEMS, SURVEILLANCE SYSTEMS, CYBER AND SURVIVABILITY SYSTEMS, AND ROBOTIC AND MEDICAL SYSTEMS. EACH CENTER COMPRISES MULTIPLE PROGRAMS AND LABORATORIES AND IS VERTICALLY INTEGRATED FROM SCIENCE TO PRODUCT CONCEPTS AND PROTOTYPES. 69604836 5853283 91262935 INFORMATION AND COMPUTING SCIENCES (ICS) PERFORMS SCIENTIFIC RESEARCH CREATING SOLUTIONS IN ARTIFICIAL INTELLIGENCE, SPEECH AND NATURAL LANGUAGE, PERCEPTION AND VISUAL SCIENCES, COMPUTATIONAL BIOLOGY, ROBOTICS, AND CYBER SECURITY. PUSHING THE BOUNDARIES OF COMPUTING, ICS EMPLOYS NEW TECHNOLOGIES TO SOLVE CLIENT PROBLEMS THROUGH CONTRACT RESEARCH, TECHNOLOGY LICENSING, AND VENTURE CREATION. OUR STAFF MEMBERS COLLABORATE WITHIN SRI, AND ALSO WITH DIVERSE UNIVERSITY AND INDUSTRY PARTNERS. 64067332 16885593 78860494 SRI BIOSCIENCES WORKS WITH ACADEMIC, FOUNDATION, GOVERNMENT, AND OTHER CLIENTS AND PARTNERS TO BRING NEW MEDICINES AND DEVICES TO MARKET THROUGH BASIC RESEARCH, PHARMACEUTICAL DISCOVERY, PRECLINICAL DEVELOPMENT AND CLINICAL TRANSLATION. RESEARCHERS SOLVE IMPORTANT PROBLEMS IN PREVENTION, DIAGNOSIS AND TREATMENT, TARGETING IMPORTANT UNMET NEEDS IN HEALTHCARE AND SAVING AND IMPROVING LIVES WORLDWIDE.OUR RESEARCHERS STRIVE TO UNDERSTAND DISEASE MECHANISMS, IDENTIFY PROMISING LEADS AND TRANSLATE PRECLINICAL CANDIDATES INTO CLINICAL DEVELOPMENT. CORE AREAS OF THERAPEUTIC EXPERTISE INCLUDE CANCER, IMMUNOLOGY AND INFLAMMATION, INFECTIOUS DISEASES AND NEUROSCIENCE. SRI ALSO CONDUCTS BIOSCIENCE R&D TO PRODUCE NEWBIOMARKERS, DRUG DELIVERY TECHNOLOGIES,MEDICALDEVICES, ANDSYSTEMS BIOLOGY TOOLS. 82157982 26122267 106901864 SRI ENGAGES IN A BROAD RANGE OF OTHER SCIENTIFIC RESEARCH INITIATIVES IN FURTHERANCE OF ITS EXEMPT MISSION, INCLUDING EDUCATION, INTEGRATED SYSTEMS AND SOLUTIONS, AND GLOBAL PARTNERSHIPS. THE EDUCATION DIVISION UNDERTAKES A RESEARCH-BASED ANALYSIS OF EDUCATIONAL OUTCOMES AND REFORMS AND THE IMPACTS OF TECHNOLOGY ON LEARNING. RESEARCHERS ADDRESS PROBLEMS POSED BY COMPLEX ISSUES IN EDUCATION POLICY, TECHNOLOGY IN LEARNING, AND LEARNING AND DEVELOPMENT. PROGRAMS HELP IDENTIFY TRENDS, UNDERSTAND OUTCOMES, AND DEVELOP POLICY AND PRACTICE SOLUTIONS TO THE CHALLENGES POSED BY RAPID SOCIAL, TECHNOLOGICAL AND ECONOMIC CHANGE. THE INTEGRATED SYSTEMS AND SOLUTIONS DIVISION DEVELOPS AND TRANSITIONS TECHNOLOGY INTELLECTUAL PROPERTY FROM LAB DEMONSTRATIONS TO FIELDED, SUPPORTED SYSTEMS BY LEVERAGING A DISCIPLINED SYSTEM ENGINEERING APPROACH INTEGRATED WITH CERTIFIED STRUCTURED DEVELOPMENT AND QUALITY PROCESSES. GLOBAL PARTNERSHIPS ENCOURAGES INNOVATION AND RESEARCH AROUND THE WORLD. 82157982 26122267 106901864 307129173 1 1 0 1 0 0 0 0 0 0 1 0 0 1 1 0 0 1 0 1 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 542 0 1 1557 1 1 1 1 JA GL 0 0 0 0 0 0 0 0 1 0 X 10 8 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 CA OR NY X STEPHANIE DEFINO 6508592000 333 RAVENSWOOD AVENUE MENLO PARK CA 94025 MARIANN BYERWALTER BOARD CHAIR 12.00 X X 170000 0 0 DAVID HOYT BOARD MEMBER 4.00 X 76000 0 0 LESLIE F KENNE BOARD MEMBER 6.00 X 69500 0 0 DAVID E LIDDLE BOARD MEMBER 6.00 X 77500 0 0 WENDELL WIERENGA BOARD MEMBER 4.00 X 70000 0 0 LAURA WRIGHT BOARD MEMBER 6.00 X 72000 0 0 JOHN J YOUNG JR BOARD MEMBER 6.00 X 68000 0 0 ISAAC STEIN BOARD MEMBER 4.00 X 71500 0 0 WILLIAM A JEFFREY CEO 40.00 X X 1195208 0 37794 DEBORAH RIEMAN FROM 0118 BOARD MEMBER 4.00 X 63500 0 0 JOHN P MCINTIRE CHIEF LEGAL OFFICER 40.00 X 487574 0 68513 JAMES E DOYLE THRU 060518 CFO & TREASURER 40.00 X 326242 0 22651 STEPHEN CIESINSKI THRU 13019 PRESIDENT 40.00 X 555524 0 61904 BARRY BROADUS FROM 060718 CFO & TREASURER 40.00 X 263542 0 10205 WILLIAM MARK DIVISION PRESIDENT 40.00 X 564565 0 72249 DONALD SEATON DIVISION PRESIDENT 40.00 X 418406 0 46492 GREGORY KOVACS CHIEF TECHNOLOGY OFFICER 40.00 X 444387 0 20763 STEVE PERNA DIVISION PRESIDENT 40.00 X 501571 0 49946 DENISE BORDERS THRU 020318 DIVISION PRESIDENT 40.00 X 355356 0 62432 MICHAEL PAGE CHIEF INFORMATION OFFICER 40.00 X 414700 0 29995 ERIN ANDRE CHIEF PEOPLE OFFICER 40.00 X 374357 0 51474 ADOLPH PFEFFERBAUM SENIOR DIRECTOR 40.00 X 468818 0 35518 PHILLIP PORRAS DIRECTOR, COMPUTER SCIENCE 40.00 X 401928 0 41555 PATRICK LINCOLN VP, COMPUTER SCIENCE 40.00 X 434599 0 72313 KAREN MYERS SR DIRECTOR, COMPUTER SCIENCE 40.00 X 341209 0 58289 KATHRYN KEATING THRU 123118 VP, MARKETING 40.00 X 399950 0 60201 MANISH KOTHARI PRESIDENT, SRI VENTURES 40.00 X 553363 0 53717 9239299 0 856011 839 0 1 0 INTERNATIONAL POWER TECHNOLOGY INC 1042 W HEDDING STREET 100 SAN JOSE CA 95126 CONSULTANT 3516291 CITOXLAB NORTH AMERICA 225 GATEWAY BLVD SOUTH SAN FRANCISCO CA 94080 LABORATORIES 3048066 ADVANTAGE TECHNICAL RESOURCING PO BOX 70107 LOS ANGELES CA 90074 STAFFING 2397094 HILLHOUSE CONSTRUCTION CO 140 CHARCOT AVE SAN JOSE CA 95131 CONSTRUCTION SERVICES 1850981 ALLIEDBARTON SECURITY SERVICES PO BOX 828854 PHILADELPHIA PA 19182 SECURITY 1484977 332 63960292 63960292 SCIENTIFIC RESEARCH 541700 290385265 290385265 COMMERICAL TECH SVCS 541900 41934381 41934381 332319646 1141847 1141847 5517295 5517295 4696778 5331961 -635183 -635183 -635183 6721566 0 6721566 6721566 6721566 OTHER INCOME 900099 -60630 -60630 -60630 408964833 290324635 41934381 12745525 X 7268812 7209 7261603 149088235 117840054 31248181 13128361 10197220 2931141 51614930 40152408 11462522 12199851 9476017 2723834 2575792 2575792 726044 217884 508160 52031 52031 86024092 71377440 14646652 449818 449818 14651441 11845491 2805950 8961845 1555511 7406334 17482240 11323034 6159206 5868375 5183811 684564 1459756 1173265 286491 650884 650884 13854262 10293107 3561155 1775686 94664 1681022 EQUIPMENT PURCHASES 12619640 12589385 30255 PRINTING/PUBLICATIONS 7201208 3793962 3407246 OTHER EXPENSES 10989 8711 2278 407664292 307129173 100535119 0 3326418 26140629 1157697 1018060 115969703 96828348 3916351 3790774 7563711 6637427 341085782 238945385 103640805 102140397 33742198 34685826 35301117 43950190 304618000 315191651 55852053 65631581 24968489 21625451 33712079 35446186 114532621 122703218 X 139428629 192473433 50656750 15000 190085379 192488433 304618000 315191651 X 1300541 -4251000 5353513 X 0 1 X 1 1 1 X 52523183 64235380 65967499 64945209 63960292 311631563 344176318 292770354 298480382 299018513 290385265 1524830832 396699501 357005734 364447881 363963722 354345557 1836462395 0 145352569 112866273 139624312 166038756 138904520 702786430 145352569 112866273 139624312 166038756 138904520 702786430 1133675965 21573581 25143876 25504013 10632522 11355920 94209912 21573581 25143876 25504013 10632522 11355920 94209912 308823 3681717 31816 20679 4043035 418581905 385831327 389983710 374616923 365701477 1934715342 0.58600 0.62040 0.04870 0.04890 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 52031 0 1 52031 0 PART II-B, LINE 1: THE AMOUNT REFLECTED IN LINE 1 (G) REPRESENTS THE EXPENSES ASSOCIATED WITH PAID STAFF OR MANAGEMENT. 13488793 13488793 225706773 178489034 47217739 14202337 8895469 5306868 68227750 41067175 27160575 19460129 10493707 8966422 102140397 OTHER ASSETS 18280190 INVESTMENT IN SUBSIDIARY 19883000 DEFERRED INCOME TAXES 5787000 43950190 CLIENT ADVANCES & CREDITS 17571920 OTHER NON CURRENT LIABILITIES 17874266 35446186 EAST ASIA 1 13 PROGRAM SERVICES INTERNATIONAL PROJECT DEVELOPMENT 1144325 EUROPE 1 3 PROGRAM SERVICES NSF ATOMOSPHERIC RESEARCH FACILITY 1390400 MIDDLE EAST 0 1 PROGRAM SERVICES INTERNATIONAL PROJECT DEVELOPMENT 5000 NORTH AMERICA 0 1 PROGRAM SERVICES INTERNATIONAL PROJECT DEVELOPMENT 8000 SOUTH ASIA 0 1 PROGRAM SERVICES GOVERNMENT PROJECT SUPPORT 15000 2 19 0 0 2 19 2562725 0 2562725 0 0 0 0 0 1 X X 1 1 X X X X X 1 0 1 0 0 0 1 1 0 MARIANN BYERWALTER BOARD CHAIR 170000 0 0 0 0 0 0 0 0 0 170000 0 0 0 WILLIAM A JEFFREY CEO 612523 0 510640 0 72045 0 5400 0 32394 0 1233002 0 0 0 JOHN P MCINTIRE CHIEF LEGAL OFFICER 336410 0 88000 0 63164 0 5400 0 63113 0 556087 0 0 0 JAMES E DOYLE THRU 060518 CFO & TREASURER 165121 0 20000 0 141121 0 3302 0 19349 0 348893 0 0 0 STEPHEN CIESINSKI THRU 13019 PRESIDENT 443259 0 77000 0 35265 0 5400 0 56504 0 617428 0 0 0 BARRY BROADUS FROM 060718 CFO & TREASURER 237462 0 25000 0 1080 0 2908 0 7297 0 273747 0 0 0 WILLIAM MARK DIVISION PRESIDENT 415874 0 54000 0 94691 0 5400 0 66849 0 636814 0 0 0 DONALD SEATON DIVISION PRESIDENT 358032 0 25000 0 35374 0 5400 0 41092 0 464898 0 0 0 GREGORY KOVACS CHIEF TECHNOLOGY OFFICER 344177 0 85547 0 14663 0 5400 0 15363 0 465150 0 0 0 STEVE PERNA DIVISION PRESIDENT 316708 0 70000 0 114863 0 5400 0 44546 0 551517 0 0 0 DENISE BORDERS THRU 020318 DIVISION PRESIDENT 32856 0 0 0 322500 0 5400 0 57032 0 417788 0 0 0 MICHAEL PAGE CHIEF INFORMATION OFFICER 352128 0 37000 0 25572 0 5400 0 24595 0 444695 0 0 0 ERIN ANDRE CHIEF PEOPLE OFFICER 310646 0 32000 0 31711 0 5400 0 46074 0 425831 0 0 0 ADOLPH PFEFFERBAUM SENIOR DIRECTOR 419097 0 40000 0 9721 0 5400 0 30118 0 504336 0 0 0 PHILLIP PORRAS DIRECTOR, COMPUTER SCIENCE 281195 0 16000 0 104733 0 5318 0 36237 0 443483 0 0 0 PATRICK LINCOLN VP, COMPUTER SCIENCE 331855 0 37480 0 65264 0 5400 0 66913 0 506912 0 0 0 KAREN MYERS SR DIRECTOR, COMPUTER SCIENCE 300000 0 36000 0 5209 0 5400 0 52889 0 399498 0 0 0 KATHRYN KEATING THRU 123118 VP, MARKETING 245721 0 58000 0 96229 0 4914 0 55287 0 460151 0 0 0 MANISH KOTHARI PRESIDENT, SRI VENTURES 334087 0 114000 0 105276 0 5400 0 48317 0 607080 0 0 0 PART I, LINE 1A SRI'S TRAVEL POLICY IS STRUCTURED FOR COMPLIANCE WITH FAR 31 205-46. UNDER SUB-SECTION (D) OF THIS PROVISION, AIRLINE COSTS IN EXCESS OF THE LOWEST CUSTOMARY STANDARD ARE ALLOWABLE IN SITUATIONS TO ACCOMMODATE THE PHYSICAL OR MEDICAL NEEDS OF THE TRAVELER. THE DECISION TO PERMIT SUCH TRAVEL, SOLELY FOR MEDICAL REASONS ON AN INDIVIDUAL BASIS, WAS ISSUED FROM THE CONTROLLER'S OFFICE WITHIN THE AUSPICES OF THE CHIEF FINANCIAL OFFICER (CFO). A TEMPORARY HOUSING SUBSIDY IS OCCASIONALLY INCLUDED AS PART OF THE RELOCATION PACKAGE OFFERED TO QUALIFIED EMPLOYEES. PART I, LINES 4A-C PART I, LINE 4A: DENISE BORDERS RECEIVED $256,275 AS SEVERANCE PAYMENTS. JAMES E. DOYLE RECEIVED $97,213 AS SEVERANCE PAYMENTS. KATHRYN KEATING RECEIVED $85,833 AS SEVERANCE PAYMENTS. PART I, LINES 4C: LIKE MOST UNIVERSITIES AND OTHER RESEARCH INSTITUTIONS, AND CONSISTENT WITH THE REQUIREMENTS OF THE BAYH-DOLE ACT [35 U S C 200 ET SEQ], SRI SHARES WITH SRI INVENTORS AND OTHER CONTRIBUTORS ROYALTIES IN THE FORM OF CASH OR EQUITY RECEIVED FROM SPIN-OFF AND OTHER COMPANIES TO WHOM SRI INTELLECTUAL PROPERTY IS LICENSED OR TRANSFERRED. THE TERMS AND CONDITIONS UNDER WHICH SRI SHARES SUCH EQUITY ARE LAID OUT IN DETAIL IN SRI'S INTELLECTUAL PROPERTY ROYALTY AND EQUITY SHARING PROGRAM THAT WAS APPROVED BY THE IRS IN A PRIVATE LETTER RULING ISSUED IN 1999. OF THE OFFICERS, DIRECTORS, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES LISTED ON FORM 990, PART VII, SECTION A, LINE 1A, FOUR RECEIVED EQUITY-BASED PAYMENTS TOTALING $120,223, WITH INDIVIDUAL AMOUNTS RANGING FROM $212 TO $75,870. PART I, LINE 6 LIKE MOST UNIVERSITIES AND OTHER RESEARCH INSTITUTIONS, AND CONSISTENT WITH THE REQUIREMENTS OF THE BAYH-DOLE ACT [35 U S C 200 ET SEQ], SRI SHARES WITH SRI INVENTORS AND OTHER CONTRIBUTORS ROYALTIES IN THE FORM OF CASH OR EQUITY RECEIVED FROM SPIN-OFF AND OTHER COMPANIES TO WHOM SRI INTELLECTUAL PROPERTY IS LICENSED OR TRANSFERRED. THE TERMS AND CONDITIONS UNDER WHICH SRI SHARES SUCH EQUITY ARE LAID OUT IN DETAIL IN SRI'S INTELLECTUAL PROPERTY ROYALTY AND EQUITY SHARING PROGRAM THAT WAS APPROVED BY THE IRS IN A PRIVATE LETTER RULING ISSUED IN 1999. OF THE OFFICERS, DIRECTORS, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES LISTED ON FORM 990, PART VII, SECTION A, LINE 1A, 17 INDIVIDUALS RECEIVED ROYALTY PAYMENTS TOTALING $621,273, WITH INDIVIDUAL AMOUNTS RANGING FROM $575 TO $113,484. PART I, LINE 7 THE AMOUNTS SHOWN IN COLUMN (II) OF SECTION B OF PART (II) INCLUDE PERFORMANCE BASED COMPENSATION (PBC). PBC IS A FINANCIAL INCENTIVE POOL OF FUNDS THAT IS PRE-APPROVED BY THE BOARD OF DIRECTORS ANNUALLY. PBC PAYOUT IS BASED ON THE FOLLOWING FACTORS THAT ARE DESIGNED TO ALIGN INDIVIDUAL AND ORGANIZATIONAL PERFORMANCE WITH THE NON-PROFIT MISSION OF SRI: GROWTH IN ORDER BOOKINGS, GROWTH IN CONTRACT LABOR REVENUE, MEETING THRESHOLD INCOME FROM RESEARCH CONTRACTS, GENERATING ROYALTY INCOME, GENERATING NEW EQUITY ASSETS RESULTING FROM SPIN-OFF COMPANIES, GENERATING NEW PATENTS, PUBLISHING RESEARCH RESULTS, AND OTHER SUCH METRICS AS DEEMED RELEVANT BY MANAGEMENT FOR THE FISCAL YEAR, AS APPROVED BY THE BOARD. A CA INFRASTRUCTURE AND DEVELOPMENT 630304653 13033W3N1 2018-11-01 10890000 REFINANCING 2010 ISSUE 0 0 0 B CA INFRASTRUCTURE AND DEVELOPMENT 630304653 SEEPARTVI 2012-06-28 18590000 REFINANCING 2003 ISSUE 0 0 0 A 10890000 2018 1 0 1 1 B 18590000 185000 2012 1 0 1 1 A 0 0 0 0 1 0 0 B 0 0 0 0 1 0 0 A 0 0 0 1 1 0 0 0 1 B 0 0 0 1 0 0 0 0 1 A 1 B 1 PART I ROW A COLUMN C: CUSIP MATURITY DATE PRINCIPAL 13033W3N1 12/01/2019 $651,854 13033W3N1 12/01/2020 $673,672 13033W3N1 12/01/2021 $706,036 13033W3N1 12/01/2022 $738,939 13033W3N1 12/01/2023 $773,145 13033W3N1 12/01/2024 $808,715 13033W3N1 12/01/2025 $847,093 13033W3N1 12/01/2026 $886,570 13033W3N1 12/01/2027 $927,767 13033W3N1 12/01/2028 $970,766 13033W3N1 12/01/2029 $1,016,361 13033W3N1 12/01/2030 $1,063,726 13033W3N1 12/01/2031 $825,358 TOTAL $10,890,000 PART I ROW B COLUMN C: CUSIP MATURITY DATE PRINCIPAL 13034ABN9 09/01/2013 $1,075,000 13034ABP4 09/01/2014 $1,110,000 13034ABQ2 09/01/2015 $1,145,000 13034ABR0 09/01/2016 $ 890,000 13034ABS4 09/01/2017 $ 925,000 13034ABT6 09/01/2018 $ 960,000 13034ABU3 09/01/2019 $1,000,000 13034ABV1 09/01/2020 $1,040,000 13034ABW9 09/01/2021 $1,095,000 13034ABX7 09/01/2022 $1,150,000 13034ABX7 09/01/2028 $8,200,000 TOTAL $18,590,000 PART IV 2 C: A) 11/1/2018 B) 4/5/2012 FORM 990, PART VI, SECTION A, LINE 2 WILLIAM JEFFREY AND LAURA WRIGHT BOTH SERVE ON THE BOARD OF DIRECTORS OF TE CONNECTIVITY LTD., AN ENTITY UNRELATED TO SRI INTERNATIONAL. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED BY SRI STAFF (TAX MANAGER, CFO, CEO), OUTSIDE LEGAL COUNSEL, AND THE AUDIT COMMITTEE. A COPY OF THE FINAL VERSION OF THE FORM 990 IS FURNISHED TO THE EACH MEMBER OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 12C SRI MAINTAINS AND ENFORCES STANDARDS OF CONDUCT AND CONFLICT-OF-INTEREST POLICIES WHICH, AMONG OTHER THINGS, REQUIRE SUCH PERSONS TO IDENTIFY, DISCLOSE, AND AVOID INTERESTS THAT COULD GIVE RISE TO ETHICAL CONFLICTS. SRI'S LEGAL DEPARTMENT TRAINS ITS OFFICERS, DIRECTORS, AND EMPLOYEES IN SRI'S CODE OF CONDUCT, ETHICS, AND CONFLICTS-OF-INTEREST POLICIES. THE ETHICS AND CONFLICT-OF-INTEREST POLICIES ARE POSTED ON SRI'S INTERNAL WEBSITE. SRI'S ETHICS OFFICER IS REACHABLE BY ALL EMPLOYEES THROUGH SRI'S ETHICS "HOTLINE". SRI'S INTERNAL AUDIT STAFF ASSIST THE ETHICS OFFICER IN INVESTIGATING POTENTIAL VIOLATIONS AND RECOMMENDING REMEDIAL MEASURES. SENIOR MANAGEMENT OVERSEES THESE PERSONNEL AND POLICIES AND ENFORCES CORRECTIVE AND DISCIPLINARY ACTION AS WARRANTED. IN THE EVENT OF POTENTIAL CONFLICTS, THE PERSONS INVOLVED ARE BARRED FROM PARTICIPATING IN THE DELIBERATIONS AND DECISIONS REGARDING THE MATTER WHICH IS THE SUBJECT OF THE CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 AMONG THE COMMITTEES OF THE SRI BOARD OF DIRECTORS IS THE COMPENSATION AND MANAGEMENT DEVELOPMENT COMMITTEE (THE "COMMITTEE"), WHICH IS COMPOSED OF FOUR INDEPENDENT DIRECTORS. THE COMMITTEE REVIEWS AND APPROVES COMPENSATION LEVELS FOR SRI'S SENIOR STAFF AND CEO ON AN ANNUAL BASIS, BASED ON COMPARABLE COMPENSATION INFORMATION FOR SIMILARLY-SITUATED COMPANIES. THIS COMPARABLE COMPENSATION INFORMATION IS DEVELOPED OR OBTAINED BY A QUALIFIED, EXPERIENCED AND INDEPENDENT COMPENSATION CONSULTANT, WHO PROVIDES A REPORT AND OPINION TO THE COMMITTEE REGARDING THE REASONABLENESS OF THE PROPOSED COMPENSATION LEVELS IN LIGHT OF THE EXTERNAL DATA. THE MINUTES OF THE COMMITTEE REFLECT AND DOCUMENT THE DECISIONS, INCLUDING THE ANALYSIS AND DATA CONSIDERED BY THE COMMITTEE. THE MINUTES OF THE COMMITTEE'S MEETINGS ARE MAINTAINED BY THE VP OF HUMAN RESOURCES AND THE GENERAL COUNSEL. FORM 990, PART VI, SECTION C, LINE 19 SRI'S ORGANIZATIONAL DOCUMENTS AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. COPIES OF THE FINANCIAL STATEMENTS CAN ALSO BE OBTAINED FROM THE OFFICE OF THE CALIFORNIA SECRETARY OF STATE, WHERE A COPY IS FILED ANNUALLY. SRI'S CONFLICT OF INTEREST POLICY IS NOT MADE AVAILABLE TO THE PUBLIC. FORM 990, PART IX, LINE 11G OTHER FEES: PROGRAM SERVICE EXPENSES 71,377,440. MANAGEMENT AND GENERAL EXPENSES 14,646,652. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 86,024,092. FORM 990, PART XI, LINE 9: NET ASSETS RELEASED FROM RESTRICTIONS -39,487. EQUITY IN EARNINGS FROM SUBSIDIARY 4,873,000. INCOME TAX BENEFIT 520,000. RAVENSWOOD SOLUTIONS 3065 SKYWAY COURT FREMONT CA 94539 472893226 TRAINING SYSTEMS DE SRI INTERNATIONAL C 4873121 19881976 1.00000 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 RAVENSWOOD SOLUTIONS A 12000 BOOK VALUE RAVENSWOOD SOLUTIONS L 684714 COST RAVENSWOOD SOLUTIONS O 15212 CASH VALUE