2012-08-15T14:54:35-05:00 2011-12-31 201776739 JPMS COX PLLC 11300 CANTRELL ROAD SUITE 301 LITTLE ROCK AR 72212 990 2011-01-01 273339369 REMINGTON COLLEGES INC REMI 4075625500 500 INTERNATIONAL PARKWAY NO 200 HEATHROW FL 32746 REID ALLISON 4075625500 2012-08-14 1 MARY ELLEN VANGILDER P00626271 5012275800 2011 2016-02-24 21:20:13Z JACK FORREST 500 INTERNATIONAL PARKWAY NO 200 HEATHROW FL 32746 159354163 0 X WWW.REMINGTONCOLLEGE.EDU X 2008 AR POST-SECONDARY EDUCATION 5 0 2130 4 179958 178958 0 1750000 0 156999906 0 -17838 0 180408 0 158912476 0 716524 0 0 0 72207415 0 0 0 0 75556715 0 148480654 0 10431822 0 196223108 0 213686160 0 -17463052 X THE MISSION OF REMINGTON COLLEGE IS TO CONTRIBUTE TO THE PUBLIC GOOD BY PROVIDING RELEVANT, CAREER-FOCUSED EDUCATION DESIGNED AND INTENDED TO HELP STUDENTS ACQUIRE THE KNOWLEDGE AND DEVELOP THE SKILLS AND ABILITIES NECESSARY FOR SUCCESSFUL ENTRY INTO THEIR (CON'T ON SCH O) CHOSEN CAREER FIELDS. REMINGTON COLLEGE BELIEVES THAT A WELL-EDUCATED WORKFORCE CONTRIBUTES TO THE ECONOMIC AND SOCIAL VIBRANCY OF THE DIVERSE COMMUNITIES IN WHICH ITS STUDENTS, FACULTY AND STAFF LIVE. TO ACCOMPLISH ITS MISSION, REMINGTON COLLEGE IS COMMITTED TO PROVIDING A CARING LEARNING ENVIRONMENT IN WHICH A TECHNICALLY RICH, INTELLECTUALLY STIMULATING, QUALITY EDUCATION IS DELIVERED BY A DEDICATED FACULTY AND STAFF. 0 0 140267581 716524 157000356 REMINGTON COLLEGES INC. CONTRIBUTED TO THE PUBLIC GOOD BY PROVIDING RELEVANT, CAREER-FOCUSED EDUCATION THAT HELPED STUDENTS ACQUIRE THE KNOWLEDGE AND DEVELOP THE SKILLS AND ABILITIES NECESSARY TO OBTAIN POSITIONS IN THEIR CHOSEN CAREER FIELDS. REMINGTON COLLEGES, INC. PROVIDED A CARING LEARNING ENVIRONMENT IN WHICH A TECHNICALLY RICH, INTELLECTUALLY STIMULATING, QUALITY EDUCATION WAS DELIVERED BY A DEDICATED FACULTY AND STAFF. 140267581 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 1 1 1 1 0 0 0 0 0 1 0 0 0 0 1 405 0 2130 1 1 1 0 0 0 0 0 0 0 0 0 X 5 0 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 0 1 1 0 X X X REID ALLISON 4075625761 500 INTERNATIONAL PARKWAY STE 200 HEATHROW FL 32746 JACK W FORREST 40.00 X X 381438 0 7625 WARREN STEPHENS 1.00 X 0 0 0 KEVIN WILCOX 1.00 X 0 0 0 MARSHALL MCKISSACK 1.00 X 0 0 0 JERALD M BARNETT JR 15.00 X 0 0 0 A REID ALLISON 40.00 X 274180 0 10688 ROBERT LUTZ 40.00 X 275595 0 10476 CHARLES R CAMP 40.00 X 277941 0 5583 DR P MICHAEL LANOUETTE 40.00 X 278080 0 8340 CHARLES FARRAJ 40.00 X 192234 0 10129 JONATHAN BAKER 40.00 X 154080 0 7625 JEREMY HERTZ 40.00 X 137985 0 9280 DALE LEATHERWOOD 40.00 X 225997 0 10606 TODD ZVAIGZNE 40.00 X 218019 0 10487 DR HIRAM NALL 40.00 X 218001 0 8250 JAKE FROEMSDORF 40.00 X 136646 0 7625 JAMES DUNN 40.00 X 113359 0 3578 MARY MCDANIEL 40.00 X 87809 0 3768 DAVID NETZLEY 40.00 X 143523 0 2400 PATRICK RESETAR 40.00 X 101730 0 2152 GARY AZOTEA 40.00 X 147000 0 9380 MIKE SMITH 40.00 X 149182 0 7449 JOANN BOUDREAUX 40.00 X 114278 0 6441 JERRY DRISKILL 40.00 X 149080 0 9125 KEN HEINEMANN 40.00 X 175412 0 6732 GREENIE W SKIP WALLS 40.00 X 202332 0 5194 SHIRLEY MCCRAY 40.00 X 111759 0 1557 LASHUNDIA BROOKS 40.00 X 109955 0 5531 ROBERT DOTY 40.00 X 103067 0 118 RANDAL HAYES 40.00 X 92354 0 2918 LORI MAY 40.00 X 187891 0 5015 LARRY COLLINS 40.00 X 152122 0 3405 STEPHEN BACKMAN 40.00 X 154301 0 2090 JOHN TOBY HAYES 40.00 X 144162 0 1951 GREGORY FALCON 40.00 X 168938 0 7151 ROSALIE LAMPONE 40.00 X 126438 0 4218 JEREMY OWENS 40.00 X 123840 0 9277 KARIN POLIFKO 40.00 X 241346 0 3017 LOUIS LAMAIR 40.00 X 122145 0 13393 ROBERT MAUK 40.00 X 68792 0 7625 BRAD MOORE 40.00 X 136793 0 1744 LAUREN LAWSON 40.00 X 69808 0 0 MICHAEL RHODES 40.00 X 159367 0 4657 LINDA PHILLIPS-MORROW 40.00 X 145485 0 7404 SHONDA WHISENHUNT 40.00 X 139584 0 9474 EDMUND FLORES 40.00 X 107737 0 2630 SCOTT DANAHY 40.00 X 118373 0 8656 MARC WRIGHT 40.00 X 105977 0 6350 7044135 0 271114 46 0 1 0 1103 LLC 1111 BISHOP ST STE 505 HONOLULU HI 96813 MAINTENANCE 605933 GREENS CROSSING II OWNER LP PO BOX 116789 ATLANTA GA 30368 MAINTENANCE 285410 CUNET LLC C/O NELNET 121 S 13TH STE 201 LINCOLN NE 68508 WEB-BASED ADVERTISING 285091 KUTAK ROCK LLP PO BOX 30057 OMAHA NE 68103 LEGAL 212849 BEADLE'S CLEANING SERVICES 1229 E OAKLAWN ST TERRELL TX 75160 JANITORIAL 210005 13 1750000 1750000 TUITION AND FEES 611310 156241509 156241509 COSMETOLOGY 611310 533212 533212 CULINARY SERVICES 611310 65988 65988 DENTAL HYGIENE SERVICE 611310 7475 7475 151722 151722 156999906 6160 6160 597352 416944 180408 180408 450 179958 745 24743 -23998 -23998 -23998 158912476 157000356 179958 -17838 256778 256778 459746 459746 7044133 7044133 56270160 52192879 4077281 239604 216783 22821 3095105 2686125 408980 5558413 5288487 269926 151580 110233 41347 3404733 2631957 772776 29132 29132 29551 29551 809312 369784 439528 10826996 10826996 8546609 8064400 482209 1470676 1018745 451931 78536 78536 18377082 17812411 564671 879174 781893 97281 129489 120845 8644 800490 800490 13380591 13261175 119416 1113933 976590 137343 TEXTBOOKS & SUPPLIES 9904940 9904940 STUDENT ACTIVITIES 2439161 2439161 EMPLOYEES & PERSONNEL 872609 801148 71461 OUTSIDE FINANCIAL AID S 661112 661112 1651009 1462234 188775 148480654 140267581 8213073 0 134556 6233162 46203897 45690 2013669 15269797 4026407 0 11243390 129268752 0 1079992 0 196223108 27212376 50695384 1362747 0 134415653 0 213686160 X 0 0 0 0 0 -17463052 0 -17463052 0 196223108 X 10431822 -27894874 X X 0 0 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 29132 0 0 29132 0 EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: THE COMPANY EMPLOYS A LOBBYIST IN TENNESSEE, CHARLES PERKINS, TO LOBBY FOR LEGISLATION THAT THE COMPANY WOULD LIKE TO HAVE ENACTED THAT WOULD DIRECTLY AFFECT THE REGULATION OF THE EDUCATIONAL INSTITUTIONS THE COMPANY OPERATES IN TENNESSEE. THIS LOBBYIST ALSO LOBBIES AGAINST LEGISLATION THAT WOULD IMPOSE REGULATIONS THAT ARE DETRIMENTAL TO THE EDUCATIONAL INSTITUTIONS THE COMPANY OPERATES IN TENNESSEE. COMPANY OFFICERS ALSO ENGAGE IN LOBBYING EFFORTS TO SUPPORT OR OPPOSE LEGISLATION THAT WOULD BE BENEFICIAL OR DETRIMENTAL TO THE EDUCATIONAL INSTITUTIONS THAT THE COMPANY OPERATES IN THE STATE WHERE THESE ACTIVATES OCCUR. THE TIME SPENT BY OFFICERS OF THE COMPANY IN LOBBYING ACTIVATES IS LESS THAN 5% OF THE HOURS WORKED BY THE OFFICERS OF THE COMPANY THAT ENGAGE IN THESE ACTIVITIES. THE TRAVEL EXPENSES INCURRED BY THE OFFICERS THAT ENGAGE IN THESE LOBBYING ACTIVITIES ARE PAID BY THE COMPANY. NO LOBBYING EFFORTS ARE UNDERTAKEN WITH RESPECT TO ANY LEGISLATION OR POLICES THAT ARE NOT RELATED TO THE BUSINESS OF THE EDUCATIONAL INSTITUTION OPERATED BY THE COMPANIES. 184749 17819 166930 14725628 3918733 10806895 359420 89855 269565 11243390 NOTES PAYABLE - EAI 133820183 LONG TERM LINE OF CREDIT 545470 DEPOSIT PAYABLE 50000 134415653 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION SCHEDULE E, PART I, LINE 3 THE POLICY IS PUBLISHED ON THE COMPANY'S WEB PAGE AND IN THE CATALOG GIVEN TO EACH INDIVIDUAL THAT ENROLLS TO ATTEND THE COMPANY, ANY INDIVIDUAL THAT IS A PROSPECTIVE STUDENT THAT INTERVIEWS WITH AN ADMISSION REPRESENTATIVE AT A CAMPUS AND TO PROSPECTIVE DISTANCE EDUCATION STUDENTS. CURRENTLY, THE POLICY IS ALSO DISCLOSED IN THE COMPANY'S ADVERTISING MATERIALS. 1 JACK T STEPHENS CHARITABLE TRUST 1701 CANTRELL RD LITTLE ROCK AR 72201 204545463 501(C)(3) 250000 EDUCATIONAL 1 0 SCHOLARSHIP 6 459746 VALUE OF CREDIT HOURS SCHOLARSHIPS TO HIGH SCHOOL STUDENTS PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: GRANTS TO INDIVIDUALS. THE SCHOLARSHIPS ARE AWARDED TO STUDENTS THAT ATTEND ONE OF THE COMPANY'S COLLEGES. A SCHOLARSHIP COMMITTEE REVIEWS THE APPLICATIONS FOR THE SCHOLARSHIPS SUBMITTED BY STUDENTS OR PROSPECTIVE STUDENTS, COMPARES THE APPLICATIONS WITH THE WRITTEN ELIGIBILITY CRITERIA AND DETERMINES IF THE APPLICANT IS ELIGIBLE AND THEN APPROVES OR REJECTS AND APPLICATION. A WRITTEN RECORD OF THE APPROVALS AND THE AMOUNTS OF THE SCHOLARSHIPS IS MAINTAINED. THE ACCOUNTING AND FINANCIAL AID DEPARTMENTS ARE THEN NOTIFIED OF THE AMOUNT OF ANY SCHOLARSHIP AWARDED AND THE SCHOLARSHIP IS CREDITED TO THE STUDENT'S ACCOUNT. IF A STUDENT WITHDRAWS FROM THE COLLEGE, THE UNUSED PORTION OF THE SCHOLARSHIP IS CANCELLED AND NO FUNDS ARE EVER DISBURSED DIRECTLY TO THE GRANTEE OF A SCHOLARSHIP. GRANTS TO ORGANIZATIONS: GRANTS OF MORE THAN $5,000 TO A SINGLE ORGANIZATION ARE RESTRICTED TO USE FOR EDUCATIONAL PURPOSES AND ARE ONLY AWARDED TO NONPROFIT ENTITIES. THE SPECIFIC USE OR PURPOSE IS INDICATED AT THE TIME THE GRANT IS AWARDED AND THE GRANTEE MUST CONFIRM THAT IT UNDERSTANDS THE RESTRICTIONS. THE COMPANY SUBSEQUENTLY CONFIRMS THE USE WITH THE GRANTEE AND WILL ALSO REVIEW THE 990 OF THE GRANTEE TO CONFIRM THE USE WAS IN COMPLIANCE WITH THE RESTRICTIONS PLACED ON THE GRANT. SCHEDULE I, PART 1, LINE 2: X 0 1 X X X 1 0 0 0 0 0 0 0 1 1 JACK W FORREST 381438 0 0 0 0 0 0 0 7625 0 389063 0 0 0 A REID ALLISON 274180 0 0 0 0 0 3063 0 7625 0 284868 0 0 0 ROBERT LUTZ 275595 0 0 0 0 0 3063 0 7413 0 286071 0 0 0 CHARLES R CAMP 277941 0 0 0 0 0 0 0 5583 0 283524 0 0 0 DR P MICHAEL LANOUETTE 278080 0 0 0 0 0 715 0 7625 0 286420 0 0 0 CHARLES FARRAJ 192234 0 0 0 0 0 2504 0 7625 0 202363 0 0 0 JONATHAN BAKER 154080 0 0 0 0 0 0 0 7625 0 161705 0 0 0 DALE LEATHERWOOD 225997 0 0 0 0 0 2981 0 7625 0 236603 0 0 0 TODD ZVAIGZNE 218019 0 0 0 0 0 2862 0 7625 0 228506 0 0 0 DR HIRAM NALL 218001 0 0 0 0 0 2862 0 5388 0 226251 0 0 0 GARY AZOTEA 147000 0 0 0 0 0 1755 0 7625 0 156380 0 0 0 MIKE SMITH 149182 0 0 0 0 0 1938 0 5511 0 156631 0 0 0 JERRY DRISKILL 149080 0 0 0 0 0 1500 0 7625 0 158205 0 0 0 KEN HEINEMANN 175412 0 0 0 0 0 2265 0 4467 0 182144 0 0 0 GREENIE W SKIP WALLS 202332 0 0 0 0 0 2564 0 2630 0 207526 0 0 0 LORI MAY 187891 0 0 0 0 0 2385 0 2630 0 192906 0 0 0 LARRY COLLINS 152122 0 0 0 0 0 775 0 2630 0 155527 0 0 0 STEPHEN BACKMAN 154301 0 0 0 0 0 1967 0 123 0 156391 0 0 0 GREGORY FALCON 168938 0 0 0 0 0 2206 0 4945 0 176089 0 0 0 KARIN POLIFKO 241346 0 0 0 0 0 3017 0 0 0 244363 0 0 0 MICHAEL RHODES 159367 0 0 0 0 0 2027 0 2630 0 164024 0 0 0 LINDA PHILLIPS-MORROW 145485 0 0 0 0 0 1893 0 5511 0 152889 0 0 0 PART I, LINE 1B HOUSING ALLOWANCES ARE MADE BASED ON VERBAL AGREEMENTS. THE ORGANIZATION DOES NOT HAVE A WRITTEN POLICY REGARDING HOUSING ALLOWANCES. PART I, LINE 3 CURRENT EMPLOYMENT CONTRACTS WERE ASSUMED AS PART OF THE PURCHASE AGREEMENT WITH EDUCATION AMERICA, INC. PART I, LINE 8 THE ASSET PURCHASE AGREEMENT BETWEEN THE COMPANY AND EDUCATION AMERICA, INC. SPECIFIED AS A BUYER CONDITION TO THE CLOSING OF THE TRANSACTION THAT CERTAIN INDIVIDUALS WOULD HAVE TO EXECUTE EMPLOYMENT AGREEMENTS. THE TERMS OF THE EMPLOYMENT AGREEMENTS WERE NEGOTIATED BY THE CEO OF THE COMPANY AT THAT TIME WHO HAS NEVER BEEN AN EMPLOYEE OF THE COMPANY AND CURRENTLY SERVES AS AN INDEPENDENT MEMBER OF THE COMPANY'S BOARD OF DIRECTORS WITHOUT COMPENSATION. NONE OF THE CURRENT OFFICERS OR KEY EMPLOYEES OF THE COMPANY WERE EMPLOYED BY THE COMPANY AT THE TIME THE EMPLOYMENT AGREEMENTS WERE NEGOTIATED OR EXECUTED. NONE OF THE MEMBERS OF THE BOARD OF DIRECTORS OF THE COMPANY AT THE TIME THE EMPLOYMENT AGREEMENTS WERE APPROVED RECEIVE ANY BENEFIT FROM THE EMPLOYMENT AGREEMENTS. GREGORY FALCON OFFICER 12000 SCHOLARSHIP GARY AZOTEA OFFICER 7997 SCHOLARSHIP RANDAL HAYES OFFICER 23062 SCHOLARSHIP EDUCATION AMERICA INC OFFICERS IN COMMON 1317461 PAYMENTS ON ASSET PURCHASE AGREEMENT 0 EAI REALTY INC OFFICERS IN COMMON 2380224 RENT 0 REMINGTON COLLEGE - BCL INC OFFICERS IN COMMON 357000 RENT 0 JB INTERESTS LLC OWNED BY JERALD BARNETT, JR. (DIRECTOR) 462504 RENT 0 BARNETT DIVERSIFIED VENTURES OWNED BY JERALD BARNETT, JR. (DIRECTOR) 250000 CONSULTING FEES 0 JERALD M BARNETT REVOCABLE TRUST GRANTOR AND TRUST BENEFICIARY IS THE FATHER OF DIRECTOR JERALD BARNETT, JR. 215256 RENT 0 REMINGTON ADMINISTRATIVE SERVICES INC OFFICERS IN COMMON 1068195 RENT 0 ACCESS EMPLOYABILITY SOLUTIONS SPOUSE OF AN OFFICER OF THE CORPORATION IS OWNER OF ENTITY 126000 CONSULTING FEES 0 SCHEDULE L, PART III: THE AMOUNTS DISCLOSED IN PART III OF SCHEDULE L REPRESENT THE VALUE OF THE SCHOLARSHIPS AWARDED TO CHILDREN OF THE LISTED OFFICERS OF THE COMPANY THAT ATTENDED A COLLEGE OPERATED BY THE COMPANY. THE SCHOLARSHIPS WERE AWARDED PURSUANT TO THE COMPANY'S EMPLOYEE SCHOLARSHIP PROGRAM. THE CHILDREN OF ALL COMPANY EMPLOYEES ARE ELIGIBLE FOR SUCH SCHOLARSHIPS AND THE SCHOLARSHIPS ARE AWARDED TO THE CHILD OF ANY EMPLOYEE OF THE COMPANY THAT APPLIES FOR A SCHOLARSHIP. SCHEDULE L, PART IV: ALL OF THE TRANSACTIONS LISTED IN PART IV OF SCHEDULE L ARE A RESULT OF EITHER CONTRACTS THAT WERE ASSUMED WHEN THE COMPANY PURCHASED ASSETS PURSUANT TO THE ASSET PURCHASE AGREEMENT BETWEEN EDUCATION AMERICA, INC. AND THE COMPANY OR NEW CONTRACTS ENTERED INTO AT THE CLOSING OF THE ASSET PURCHASE. THE REAL ESTATE LEASES WERE FOR THE PROPERTIES THE COLLEGES PURCHASED BY THE COMPANY WERE OCCUPYING ON THE CLOSING DATE AND NEW LEASES WERE ENTERED TO FIX THE RENTAL AMOUNTS AND LEASE TERM FOR A PERIOD ACCEPTABLE TO THE COMPANY. THE LEASES WERE DETERMINE TO BE A FAIR MARKET VALUE BY A THIRD PARTY VALUATION FIRM EMPLOYED BY THE COMPANY. FORM 990, PART IV, LINE 12A: THE ORGANIZATION DID NOT RECEIVE AUDITED FINANCIAL STATEMENTS FOR THE TAX YEAR ENDED DECEMBER 31, 2011 BUT DID RECEIVE AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2011. THE ORGANIZATION HAS AN AUDIT COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE FISCAL YEAR AUDIT AND SELECTION OF AN INDEPENDENT ACCOUNTANT. THE FISCAL YEAR AUDITED FINANCIALS ARE ISSUED ON A SEPARATE BASIS. FORM 990, PART VI, SECTION A, LINE 1 THE BOARD OF DIRECTORS APPOINTED A 3 MEMBER EXECUTIVE COMMITTEE ON APRIL 1, 2011 AND GRANTED THE EXECUTIVE COMMITTEE THE POWER AND AUTHORITY TO EXERCISE THE POWERS OF THE FULL BOARD OF DIRECTORS OF THE COMPANY TO THE EXTENT AUTHORIZED BY ARK CODE ANN 4-33-825. THE BOARD OF DIRECTORS APPOINTED A TWO MEMBER AUDIT COMMITTEE COMPRISED OF INDEPENDENT DIRECTORS ON APRIL 1, 2011 AND GRANTED THE AUDIT COMMITTEE THE POWER AND AUTHORITY TO EXERCISE THE POWERS OF THE FULL BOARD OF DIRECTORS OF THE COMPANY TO THE EXTENT AUTHORIZED BY ARK CODE ANN 4-33-825 AS TO THE SELECTION OF INDEPENDENT AUDITORS FOR FINANCIAL AND FINANCIAL AID AUDITS, CONSULTATION WITH AUDITORS AND REVIEW AND APPROVAL OF MONTHLY FINANCIAL STATEMENTS. THE BOARD OF DIRECTORS APPOINTED A 3 MEMBER COMPENSATION COMMITTEE COMPRISED OF NON-EMPLOYEE DIRECTORS ON APRIL 1, 2011 AND GRANTED THE EXECUTIVE COMMITTEE THE POWER AND AUTHORITY TO EXERCISE THE POWERS OF THE FULL BOARD OF DIRECTORS OF THE COMPANY TO THE EXTENT AUTHORIZED BY ARK CODE ANN 4-33-825 WITH RESPECT TO THE FIXING OF COMPENSATION FOR EXECUTIVE OFFICERS AND OTHER EMPLOYEES OF THE COMPANY. FORM 990, PART VI, SECTION A, LINE 2 BOARD MEMBERS WARREN STEPHENS, KEVIN WILCOX AND MARSHALL MCKISSACK ARE ALL EMPLOYED BY STEPHENS, INC., A PRIVATELY-HELD, INDEPENDENT FINANCIAL SERVICES FIRM. THE FOLLOWING ARE EITHER OFFICERS OR DIRECTORS OF THE COMPANY AND ARE ALSO SHAREHOLDERS AND EITHER A DIRECTOR OR OFFICER OF EDUCATION AMERICA, INC.: JERALD M. BARNETT, JR., JACK FORREST, BOB LUTZ, MIKE LANOUETTE, CHARLES R. CAMP, REID ALLISON JERALD M. BARNETT, JR., JACK FORREST AND CHARLES R. CAMP ARE ALL MEMBERS OF VIRATOX, LLC. FORM 990, PART VI, SECTION A, LINE 6 THE SOLE MEMBER OF THE COLLEGE IS THE JACKSON T. STEPHENS CHARITABLE TRUST. FORM 990, PART VI, SECTION A, LINE 7A THE ARTICLES OF INCORPORATION OF THE COMPANY PROVIDE THAT THE COMPANY SHALL HAVE A MEMBER. THE COMPANY'S BYLAWS PROVIDE THE MEMBER OF THE COMPANY, CURRENTLY THE JACKSON T. STEPHENS CHARITABLE TRUST, HAS THE POWER TO APPOINT A MAJORITY OF THE MEMBERS OF THE BOARD. THIS POWER ENSURES THAT ALL ACTIONS TAKEN BY THE BOARD WILL BE APPROVED BY DISINTERESTED MEMBERS, I.E. MEMBERS WITH NO PRIOR AFFILIATION WITH THE PREDECESSOR ORGANIZATION, EDUCATION AMERICA, INC. THE COMPANY'S BYLAWS ALSO PROVIDE THAT EDUCATION AMERICA, INC. HAS THE RIGHT TO APPOINT TWO OF THE COMPANY'S DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B THE ARKANSAS NONPROFIT CORPORATION ACT PROVIDES THAT THE MEMBER OF THE COMPANY MAY AMEND THE COMPANY'S ARTICLES OF INCORPORATION AND THAT THE APPROVAL OF THE MEMBER IS REQUIRED TO MAKE CERTAIN AMENDMENTS TO THE ARTICLES OF INCORPORATION. THE ARKANSAS NONPROFIT CORPORATION ACT PROVIDES THAT THE MEMBER OF THE COMPANY MUST APPROVE ANY MERGER OF THE COMPANY, ANY SALE OR OTHER DISPOSITION OF SUBSTANTIALLY ALL OF THE ASSETS OF THE COMPANY OR THE DISSOLUTION OF THE COMPANY. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS REVIEWED BY THE ASSISTANT CONTROLLER, CONTROLLER, CHIEF FINANCIAL OFFICER, CHIEF EXECUTIVE OFFICER, SECRETARY/GENERAL COUNSEL AND IS MADE AVAILABLE TO THE DIRECTORS OF THE ORGANIZATION PRIOR TO BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C THE COMPANY HAS A POLICY THAT REQUIRES IMMEDIATE DISCLOSURE OF ANY CONFLICT OF INTEREST OR POTENTIAL CONFLICT OF INTEREST BY DIRECTORS, OFFICERS, MANAGERS AT THE TIME THE CONFLICT ARISES. THE COMPANY ALSO REQUIRES A CONFLICTS OF INTEREST DISCLOSURE STATEMENT TO BE COMPLETED ANNUALLY. THE BOARD HAS HAD CONFLICTS OF INTEREST PRESENTED TO THEM FOR CONSIDERATION AND APPROVED THE TERMS UPON WHICH THE CONFLICT WOULD BE RESOLVED OR DISALLOWED. THE CEO OF THE COMPANY HAS REVIEWED CONFLICTS PRESENTED TO HIM WHERE THE RESOLUTION WAS WITHIN HIS AUTHORITY IN ACCORDANCE WITH THE CONFLICTS OF INTEREST POLICY AND APPROVED THE TERMS UPON WHICH THE CONFLICT WOULD BE RESOLVED OR DISALLOWED. ALL CONFLICTS OF INTEREST THAT MIGHT INVOLVE A PRIVATE BENEFIT WERE ALSO REVIEWED IN ACCORDANCE WITH THE PRIVATE INUREMENT POLICY. CONTRACTS FOR GOODS AND SERVICES PURCHASED BY THE COMPANY ARE REVIEWED BY THE LEGAL DEPARTMENT AND ANY THAT MIGHT INVOLVE A CONFLICT OF INTEREST ARE REPORTED TO THE CEO IN ACCORDANCE WITH THE CONFLICTS OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 AT THE TIME THE COMPANY PURCHASED THE EDUCATIONAL INSTITUTIONS THAT IT OPERATES, THE CURRENT EXECUTIVE OFFICERS AND OTHER KEY EMPLOYEES OF THE COMPANY HAD EMPLOYMENT AGREEMENTS WITH THE SELLER WHICH FIXED THEIR COMPENSATION FOR 2011. THE COMPANY ASSUMED THESE EMPLOYMENT AGREEMENTS AS A PART OF THE PURCHASE TRANSACTION. THE CONTRACTS WERE REVIEWED BY THE COMPANY'S THEN CHIEF EXECUTIVE OFFICER, WHO WAS AN INDEPENDENT DIRECTOR OF THE COMPANY, AND ITS LEGAL COUNSEL AT THE TIME THE ASSET PURCHASE AGREEMENT WAS BEING NEGOTIATED. THEY DETERMINED THE EMPLOYMENT AGREEMENTS TO BE AT FAIR MARKET VALUE BASED UPON THE EXPERIENCE LEVELS OF THESE INDIVIDUALS AND IMPORTANCE TO THE OPERATIONS OF THE COMPANY IN THE FUTURE. FORM 990, PART VI, SECTION C, LINE 19 ALL DOCUMENTS ARE AVAILABLE UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: BAD DEBT EXPENSE -8,991,353. ACCRUED INTEREST EXPENSE -17,296,794. BOOK/TAX DIFFERENCE IN AMORTIZATION EXPENSE -1,606,727. TOTAL TO FORM 990, PART XI, LINE 5: -27,894,874. FORM 990, PART XII, LINE 2B: THE ORGANIZATION RECEIVED AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2011. JACKSON T STEPHENS CHARITABLE TRUST 1701 CANTRELL RD LITTLE ROCK AR 72201 204545463 EDUCATIONAL SUPPORT AR 501(C)(3) PRIVATE FOUNDATION 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 JACKSON T STEPHENS CHARITABLE TRUST B 250000 CASH