2012-05-31T08:50:33-05:00 2011-12-31 251645876 KENDALL PREBOLA AND JONES CPAS PO BOX 259 BEDFORD PA 155220259 990 2011-01-01 272107952 CHANGE THE EQUATION INC CHAN 2026265740 1101 K STREET NW NO 610 WASHINGTON DC 20005 LINDA P ROSEN PHD 2026265740 2012-05-31 1 RICHARD M JONESCPA P00621721 8146231880 2012-05-31 X 2011 2016-02-24 21:20:13Z LINDA P ROSEN PHD 1101 K STREET NW WASHINGTON DC 20005 3488567 0 X WWW.CHANGETHEEQUATION.ORG X 2010 DE CHANGE THE EQUATION'S (CTEQ) MISSION IS TO CREATE WIDESPREAD LITERACY IN SCIENCE, TECHNOLOGY, ENGINEERING AND MATH (STEM) AS AN INVESTMENT IN OUR NATION THAT EMPOWERS US ALL. CTEQ HELPS TO ENGAGE YOUNG PEOPLE, IN PARTICULAR, LOW-MINORITY STUDENTS, IN STEM LEARNING THAT WILL ENABLE THEM TO SUCCEED IN POST-SECONDARY EDUCATION, HOLD REWARDING JOBS, AND PARTICIPATE FULLY AS CITIZENS. 7 7 7 7 0 0 2889285 3488552 0 0 426 15 0 0 2889711 3488567 0 0 0 0 237506 963432 0 0 22975 817699 937709 1055205 1901141 1834506 1587426 4369803 5506107 2535297 2084175 1834506 3421932 X CHANGE THE EQUATION'S (CTEQ) MISSION IS TO CREATE WIDESPREAD LITERACY IN SCIENCE, TECHNOLOGY, ENGINEERING AND MATHEMATICS (STEM) AS AN INVESTMENT IN OUR NATION THAT EMPOWERS US ALL. CTEQ HELPS TO ENGAGE YOUNG PEOPLE, IN PARTICULAR, UNDERREPRESENTED GROUPS, IN STEM LEARNING THAT WILL ENABLE THEM TO SUCCEED IN POST-SECONDARY EDUCATION, HOLD REWARDING JOBS, AND PARTICIPATE FULLY AS CITIZENS. 0 0 665884 STRENGTHENING CTEQ MEMBERS' PHILANTHROPYCTEQ HAS WORKED WITH A COMMITTEE OF REPRESENTATIVES FROM MEMBER COMPANIES TO CREATE A SET OF "DESIGN PRINCIPLES FOR EFFECTIVE STEM PHILANTHROPY," TOGETHER WITH A RUBRIC TO HELP COMPANIES APPLY THE PRINCIPLES, AND AN EVALUATION PRIMER TO HELP THEM UNDERSTAND HOW TO JUDGE THE QUALITY AND VALIDITY OF PROGRAM'S EFFECTIVENESS CLAIMS. THESE TOOLS AIM TO HELP MEMBER COMPANIES EXAMINE THEIR OWN PRACTICE AND INCREASE THE IMPACT OF THE RESOURCES THEY DEVOTE TO IMPROVING LEARNING IN STEM. IN JUNE 2011, CTEQ ORGANIZED FOUR REGIONAL MEETINGS TO GATHER MEMBER COMPANIES' INPUT INTO THE DRAFT RUBRIC AND SOLICIT THEIR ADVICE ABOUT OTHER TOOLS. EXPANDING EFFECTIVE STEM PROGRAMS TO 100 NEW SITES ACROSS THE COUNTRY: AT CTEQ'S OFFICIAL LAUNCH IN SEPTEMBER 2010, PRESIDENT OBAMA ANNOUNCED THAT CTEQ WOULD EXPAND A HANDFUL OF EFFECTIVE STEM LEARNING PROGRAMS TO 100 NEW SITES ACROSS THE COUNTRY. TO ADDRESS THIS GOAL, CTEQ IDENTIFIED A LIST OF 7 EFFECTIVE "FEATURED PROGRAMS" AND BEGAN WORKING WITH MEMBERS TO SUPPORT THOSE PROGRAMS IN NEW DISTRICTS OR SCHOOLS ACROSS THE COUNTRY. BY THE END OF 2011, MEMBER COMPANIES HAD BROUGHT THESE PROGRAMS TO MORE THAN 130 SITES ACROSS THE COUNTRY. THESE INCLUDE PROGRAMS SUCH AS THE ADVANCED PLACEMENT TRAINING & INCENTIVE PROGRAM, WHICH INCREASES THE NUMBERS OF STUDENTS TAKING AND PASSING AP TESTS, AND ENGINEERING IS ELEMENTARY, A PROGRAM TO IMPROVE THE GRASP OF (AND ENTHUSIASM FOR) ENGINEERING AMONG ELEMENTARY SCHOOL STUDENTS AND THEIR TEACHERS. PRESIDENT OBAMA CELEBRATED THIS ACHIEVEMENT AT HIS FEBRUARY 7, 2012 WHITE HOUSE SCIENCE FAIR.DATABASE OF EFFECTIVE STEM PROGRAMS: CTEQ HAS CONTRACTED WITH THE RESEARCH FIRM WESTED TO CREATE A SEARCHABLE DATABASE OF PROGRAMS THAT MEET OUR DESIGN PRINCIPLES FOR EFFECTIVE STEM PHILANTHROPY. THE DATABASE WOULD BE SEARCHABLE BY CRITERIA SUCH AS GEOGRAPHIC LOCATION, GRADE LEVEL, TARGET AUDIENCE, DISCIPLINE, AREA OF EFFECTIVENESS, ETC. THE DESIGN PRINCIPLES COMMITTEE IS GUIDING THIS INITIATIVE AND AIMS TO HAVE A PILOT DATABASE READY BY LATE SPRING 2012 AND A FULL DATABASE WITH AT LEAST 100 PROGRAMS BY THE CLOSE OF 2012.CTEQ WILL MEASURE THE IMPACT OF THIS DATABASE BY ITS MEMBERS GIVING DECISIONS.CHANGE THE EQUATION COMMITTEES: CTEQ CURRENTLY MANAGES SIX COMMITTEES OF REPRESENTATIVES FROM MEMBER COMPANIES. THESE COMMITTEES ENGAGE MEMBER COMPANIES IN CTEQ'S WORK, ENSURE THAT THE WORK REFLECTS MEMBERS' NEEDS, AND CREATE KNOWLEDGE AND TOOLS COMPANIES CAN USE TO IMPROVE THEIR OWN PRACTICE AND ADVOCACY.IN ADDITION TO THE DESIGN PRINCIPLES COMMITTEE, WHOSE WORK IS DESCRIBED ABOVE, CTEQ FACILITATES THE WORK OF A COMMITTEE ON UNDERREPRESENTED GROUPS IN STEM, A COMMITTEE ON EMPLOYEE ENGAGEMENT, A COMMITTEE ON GAMING AND EDUCATION, AND A COMMITTEE OF COMMUNICATIONS STAFFERS. THE COMMITTEE ON UNDERREPRESENTED GROUPS AIMS TO CREATE A NUMBER OF TOOLS TO IMPROVE MEMBER PHILANTHROPY AND ADVOCACY, AS WELL AS TO ENSURE CTEQ'S CONTINUED FOCUS ON THE IMPORTANCE OF ADDRESSING THE NEEDS OF STUDENTS OF COLOR AND FEMALE STUDENTS. THE COMMITTEE ON EMPLOYEE ENGAGEMENT FOCUSES ON CREATING TOOLS AND LEARNING OPPORTUNITIES AIMED AT IMPROVING MEMBER COMPANIES PROGRAMS TO ENGAGE THEIR EMPLOYEES IN LOCAL EFFORTS TO IMPROVE STEM EDUCATION. THE GAMING COMMITTEE, WHICH LAUNCHED IN LATE 2011, WILL CONVENE IN CALIFORNIA IN MARCH 2012 TO PLAN ITS CONCRETE NEXT STEPS. COMMITTEE MEMBERS HAVE ALREADY BEGUN NETWORKING AND CONSIDERING OPPORTUNITIES FOR COLLABORATION. THE COMMUNICATIONS COMMITTEE WAS LAUNCHED IN SUMMER 2011 AND AIMS TO HELP CTEQ AND ITS MEMBERS AMPLIFY CRITICAL SHARED MESSAGES ABOUT STEM LEARNING. 860862 ADVOCACY FOR STEM LEARNINGSTATE-BY-STATE VITAL SIGNS REPORTS: CHANGE THE EQUATION IS COMMITTED TO PROMOTING SOUND STATE-LEVEL POLICY AND PRACTICE RECOMMENDATIONS TO STRENGTHEN STEM LEARNING FOR ALL STUDENTS. ONE STRATEGY FOR ADDRESSING THIS GOAL IS THE CREATION OF DATA-DRIVEN "VITAL SIGNS" REPORTS ON DATA INDICATORS RELATED TO STEM LEARNING. THE REPORTS AIM TO EQUIP CTEQ MEMBER COMPANIES TO WORK WITH GOVERNORS AND OTHER STATE LEADERS TO STAND UP FOR POLICIES AND PRACTICES BASED ON DATA THAT PROMISE TO IMPROVE STEM LEARNING, BOTH IN AND OUT OF SCHOOL. THE FOCUS IS ON STUDENTS IN THE K-12 AGE RANGE. CURRENT PLANS HAVE THE VITAL SIGNS REPORTS COMING IN TWO PHASES.VITAL SIGNS REPORTS - PHASE I: IN APRIL 2011, CTEQ RELEASED A SET OF "VITAL SIGNS" REPORTS ON THE CONDITION OF STEM LEARNING IN ALL 50 STATES AND THE DISTRICT OF COLUMBIA. THOSE REPORTS COMPILED PUBLICLY-AVAILABLE DATA ON AREAS SUCH AS STUDENT ACHIEVEMENT IN MATH AND SCIENCE, THE QUALITY OF STATE STANDARDS, ACHIEVEMENT GAPS SEPARATING STUDENTS IN DIFFERENT ETHNIC GROUPS, GRADUATION RATES, PREPARATION FOR AND SUCCESS IN COLLEGE, THE QUALITY OF INSTRUCTION AND TEACHER PREPARATION. ALL 50 STATE GOVERNORS, THEIR CHIEF STATE SCHOOL OFFICERS, AND THE MAYOR OF THE DISTRICT OF COLUMBIA RECEIVED COPIES OF THEIR RESPECTIVE STATES' "VITAL SIGNS" REPORTS. EACH REPORT WAS ACCOMPANIED BY A LETTER, SIGNED BY CTEQ MEMBER COMPANY CEOS, URGING GOVERNORS TO RAISE EXPECTATIONS FOR STUDENTS IN MATH AND SCIENCE. (THE REPORTS REVEALED THAT MOST STATES SET A LOW BAR FOR PROFICIENCY ON THEIR STATE TESTS.)CTEQ MARKED THE RELEASE OF THE FIRST SET OF VITAL SIGNS WITH A PRESS BRIEFING FEATURING A PANEL OF HIGH PROFILE LEADERS IN BUSINESS, EDUCATION AND GOVERNMENT. THE EVENT RECEIVED WIDESPREAD COVERAGE FROM NATIONAL AND LOCAL MEDIA OUTLETS.CTEQ FOLLOWED UP ON THE EVENT BY HELPING CEOS IN ITS MEMBERSHIP URGE INDIVIDUAL GOVERNORS TO STAY COMMITTED TO HIGHER STANDARDS.VITAL SIGNS REPORTS - PHASE II: WITH FUNDING FROM THE BILL & MELINDA GATES FOUNDATION, CTEQ IS WORKING WITH THE AMERICAN INSTITUTES FOR RESEARCH (AIR) TO CREATE A SECOND ROUND OF MORE ROBUST STATE-BY-STATE "VITAL SIGNS" REPORTS. WE WILL RELEASE THESE REPORTS IN FALL 2012. OUR ANALYSIS IS YIELDING THE RICHEST, MOST COMPLETE STATE-BY-STATE INFORMATION ON STEM LEARNING EVER ASSEMBLED. THESE REPORTS COMBINE PUBLICLY AVAILABLE DATA WITH NEW DATA GLEANED FROM NEW SOURCES OR REANALYSIS OF DATA IN EXISTING SOURCES. THE DATA WILL BE AVAILABLE IN BRIEF PRINTED REPORTS AS WELL AS ON AN INTERACTIVE WEBSITE THAT WILL ALLOW VISITORS TO EXPLORE STATE-BY-STATE DATA IN MORE DEPTH.THE REPORTS WILL PRESENT DATA ON OUTCOMES (OR RESULTS SUCH AS TEST SCORES AND GRADUATION RATES), INPUTS (SUCH AS RESOURCES FOR EDUCATION) AND PROCESSES (SUCH AS TEACHER EDUCATION PRACTICES, CONTENT STANDARDS, ASSESSMENTS, ETC.). THEY WILL INCLUDE INFORMATION ON STATE POLICIES THAT CAN AFFECT STEM EDUCATION.AIR COMPLETED A PILOT ANALYSIS OF 15 STATES IN JANUARY 2012. REPORTS ON ALL STATES AND THE DISTRICT OF COLUMBIA WILL BECOME AVAILABLE IN AUGUST. EACH REPORT WILL BE ACCOMPANIED BY RECOMMENDATIONS FOR ACTIONS TO ADDRESS SHORTCOMINGS. IN DECEMBER, CTEQ RELEASED ALL OVER THE MAP, A REPORT ON STATES SCIENCE PROFICIENCY STANDARDS. THE REPORT FOUND THAT STATES' EXPECTATIONS FOR WHAT STUDENTS SHOULD KNOW AND BE ABLE TO DO IN 8TH GRADE SCIENCE WERE RADICALLY INCONSISTENT WITH ONE ANOTHER. WHATS WORSE, IT CONCLUDED THAT AT LEAST 15 STATES SET THE BAR FOR PROFICIENCY BELOW WHERE THE NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS SETS THE BAR FOR MERELY BASIC PERFORMANCE. MEDIA ACROSS THE COUNTRY TOOK NOTE OF THE REPORT, AS DID CTEQ MEMBER COMPANIES. LIKE THE FIRST PHASE OF VITAL SIGNS REPORTS, THESE REPORTS AIM TO ARM CTEQ MEMBER COMPANIES WITH THE DATA AND RECOMMENDATIONS THEY CAN USE IN HIGH-LEVEL CONVERSATIONS WITH GOVERNORS AND OTHER STATE LEADERS. AS SUCH, THEY WILL PRESENT RELEVANT, ACTIONABLE DATA IN A WAY THAT IS CLEAR AND ACCESSIBLE TO BOTH COMPANY REPRESENTATIVES AND STATE LEADERS. THEY WILL ALSO BE PITCHED TO A MUCH BROADER AUDIENCE. CTEQ WILL CREATE TOOLS AND OTHER GUIDANCE TO HELP COMPANIES USE THE REPORTS TO GREATEST EFFECT. UNDER THE GUIDANCE OF AN ADVOCACY COMMITTEE CONSISTING OF CTEQ MEMBERS, THE ORGANIZATION WILL ALSO DEVELOP AND CARRY OUT A STRATEGY FOR MOBILIZING MEMBER CEOS TO BECOME A MORE EFFECTIVE VOICE FOR IMPROVING STEM LEARNING AT THE STATE LEVEL.WE EXPECT THE "VITAL SIGNS" REPORTS TO BE A MAJOR CONTRIBUTION TO BOTH NATIONAL AND STATE-LEVEL INITIATIVES TO IMPROVE STEM LEARNING FOR ALL CHILDREN.CTEQ HOSTED A MAY 2012 FORUM TO INTRODUCE STATE TEAMS TO THE VITAL SIGNS PROJECT, EMERGING FINDINGS AND NEXT STEPS. THESE TEAMS, WHICH WILL CONSIST OF BUSINESS LEADERS, EDUCATORS AND STATE POLICYMAKERS, WILL OFFER GUIDANCE ON HOW TO MAKE THE REPORTS AS HELPFUL AS POSSIBLE TO THEIR EFFORTS TO IMPROVE STEM LEARNING. AFTER THE REPORTS RELEASE IN AUGUST, CTEQ WILL LIKELY CONVENE MEMBERS IN FURTHER MEETINGS TO HELP THEM UNDERSTAND THE FINDINGS, THOSE FINDINGS IMPLICATIONS, THE URGENCY OF STATE-LEVEL CHANGE, AND WHAT MEMBERS CAN DO TO IMPROVE THE SITUATION.CTEQ IS RELEASING SELECT PORTIONS OF ITS VITAL SIGNS WORK IN THE MONTHS LEADING UP TO THE AUGUST RELEASE. IN DECEMBER 2011, THE ORGANIZATION RELEASED A BRIEF REPORT ON STATES' WILDLY INCONSISTENT EXPECTATIONS FOR WHAT STUDENTS SHOULD KNOW AND BE ABLE TO DO IN 8TH GRADE SCIENCE. THE REPORT, WHICH SHOWED THAT MANY STATES WERE SETTING THE PASSING BAR ON STATE TESTS VERY LOW, GARNERED PRESS COVERAGE FROM MEDIA OUTLETS ACROSS THE COUNTRY; CTEQ PLANS TO RELEASE TWO MORE INTERIM REPORTS-ONE IN APRIL AND ANOTHER AT THE MEETING IN MAY-BEFORE THE FINAL RELEASE.IT IS POSSIBLE THAT CTEQ WILL CONTINUE WITH A SERIES OF VITAL SIGNS REPORTS, IF THE FIRST TWO ARE WELL-RECEIVED AND INFLUENTIAL AND FUNDING IS AVAILABLE. IT IS TOO EARLY TO KNOW FOR CERTAIN. 167152 INSPIRING YOUNG PEOPLE INNOVATION ROADTRIP NATION: WE HAVE PARTNERED WITH ROADTRIP NATION, AN ACCLAIMED PROGRAM WHERE YOUTH CONNECT WITH PROFESSIONAL ROLE MODELS ACROSS THE COUNTRY AS THEY BEGIN TO CHART THEIR OWN PLANS FOR THE FUTURE. CTEQ AND ROADTRIP NATION WILL CREATE TEACHING MATERIALS AND A NATIONAL NETWORK OF CTEQ MEMBER EMPLOYEES WHO USE STEM IN THEIR JOBS. THIS NETWORK WILL REACH TENS OF THOUSANDS OF STUDENTS IN GRADES 6 THROUGH 9 NATIONWIDE AND OFFER CTEQ COMPANIES EXCITING OPPORTUNITIES TO GET INVOLVED.IN THE INITIATIVE, STUDENTS SET OUT ON FIGURATIVE AND LITERAL ROADTRIPS WHERE THEY LEARN ABOUT PROFESSIONS THAT REQUIRE STEM, IDENTIFY STEM PROFESSIONALS WHO LIVE LIVES THAT INTEREST THEM, AND THEN REACH OUT TO THOSE PROFESSIONALS FOR IN-DEPTH CONVERSATIONS WHERE PROFESSIONALS DESCRIBE THE STEPS THAT THEY TOOK TO STEM-RELATED CAREERS. THIS EXPERIENCE GIVES YOUTH (WHO MIGHT NEVER OTHERWISE MEET STEM PROFESSIONALS) THE CHANCE TO THINK CAREFULLY ABOUT THEIR FUTURES; GAIN FIRST-HAND ADVICE; LEARN HOW TO MAKE CONTACTS WITH ROLE MODELS; EXPLORE EXCITING OPPORTUNITIES IN STEM; AND DISCOVER HOW THEIR INTERESTS ALIGN WITH STEM PATHWAYS.ROADTRIP NATION: INNOVATION WILL PUBLICLY LAUNCH IN BACK TO SCHOOL 2012 WITH A HIGH-PROFILE LAUNCH EVENT AND CROSS-COUNTRY ROADTRIP, WHERE COLLEGE STUDENTS IN ROADTRIP NATIONS TRADEMARK GREEN RV VISIT SOME CTEQ MEMBER SITES AND FILM INTERVIEWS WITH CEOS AND OTHER EMPLOYEES. THESE INTERVIEWS WILL FORM THE BASIS OF ROBUST TEACHING MATERIALS TO PREPARE MIDDLE AND EARLY HIGH SCHOOL STUDENTS FOR THEIR OWN ROADTRIPS. OVER TWO YEARS, 20,000 YOUTH WILL TAKE PART IN FACE-TO-FACE INSTRUCTION LEADING TO IN-PERSON OR SKYPE INTERVIEWS. ANOTHER 50,000+ WILL EXPLORE AN ONLINE MODULE THAT COULD LEAD TO IN-PERSON OR SKYPE INTERVIEWS. CTEQ WILL CREATE A DIRECTORY OF THOUSANDS OF CTEQ COMPANY PROFESSIONALS THE YOUNG ROADTRIPPERS CAN REACH OUT TO. 1693898 1 1 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 30 0 1 7 1 0 0 0 0 0 0 0 0 0 0 X 7 7 1 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 1 1 0 X LINDA ROSEN 2026265740 1101 K STREET NW SUITE 610 WASHINGTON DC 20005 CRAIG R BARRETT 1.00 X X 0 0 0 SALLY RIDE 1.00 X X 0 0 0 GLENN A BRITT 1.00 X X 0 0 0 URSULA BURNS 1.00 X 0 0 0 ANTONIO M PEREZ 1.00 X 0 0 0 REX W TILLERSON 1.00 X 0 0 0 WILLIAM GREEN 1.00 X 0 0 0 LINDA ROSEN 40.00 X 300000 0 11210 ROBERT W RICHARDSON 40.00 X 154212 0 12805 CLAUS E VON ZASTROW 40.00 X 137154 0 17128 591366 0 41143 3 0 1 0 AMERICAN INSTITUTES FOR RESEARCH 1000 THOMAS JEFFERSON STREET NW WASHINGTON DC 20007 CONSULTING 249909 1 3473333 15219 2000 3488552 15 15 3488567 0 0 15 470471 435494 32157 2820 403156 361204 30779 11173 8140 6912 917 311 33108 28114 3728 1266 48557 41235 5466 1856 500 500 14722 5615 8952 155 43614 43614 505391 488236 17114 41 6194 5505 593 96 84237 74861 8070 1306 186204 165477 17839 2888 28015 24897 2684 434 10949 10486 463 23679 21043 2269 367 1131 1005 108 18 PRINTING & PRODUCTION 13922 6473 7417 32 TELEPHONE & INTERNET 9241 8213 885 143 POSTAGE & SHIPPING 6587 6175 395 17 MEMBERSHIP DUES 3323 2953 318 52 1901141 1693898 184268 22975 1637408 5210088 2050422 527915 50300 26445 89555 3024 10526 94725 20920 28520 73805 74762 71447 21307 386 4369803 5506107 94047 115842 2441250 1968333 2535297 2084175 X 836385 2744306 998121 677626 1834506 3421932 4369803 5506107 1587426 0 X 0 1 1 X 0 X 2889285 3488552 6377837 2889285 3488552 6377837 2353516 4024321 426 15 441 6378278 0.63090 0.43460 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 94725 20920 73805 73805 3488567 1901141 1587426 1587426 3489167 600 600 3488567 0 3488567 1901741 600 600 1901141 0 1901141 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: IN JUNE 2006, THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ISSUED FASB ASC NO. 740-10 [FORMERLY INTERPRETATION NO. 48 (FIN 48)], ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH IS AN INTERPRETATION OF ASC 740'S (FORMERLY SFAS NO. 109), ACCOUNTING FOR INCOME TAXES. FASB ASC NO. 740-10 CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN CTEQ'S FINANCIAL STATEMENTS IN ACCORDANCE WITH ASC 740,S AND PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. FASB ASC NO. 740-10 REQUIRES THE EVALUATION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN THE COURSE OF PREPARING CTEQ'S TAX RETURN TO DETERMINE WHETHER THE TAX POSITIONS HAVE A "MORE-LIKELY-THAN-NOT" PROBABILITY OF BEING SUSTAINED BY THE APPLICABLE TAX AUTHORITY. TAX POSITIONS DEEMED TO MEET THE "MORE-LIKELY-THAN-NOT" THRESHOLD WOULD BE RECORDED AS A TAX BENEFIT OR EXPENSE IN THE CURRENT YEAR. FASB ASC NO. 740-10 ALSO PROVIDES GUIDANCE ON DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES, ACCOUNTING IN INTERIM PERIODS, DISCLOSURE, AND TRANSITION. ANY CUMULATIVE EFFECT FROM THE CHANGE IN ACCOUNTING PRINCIPLE RESULTING FROM THE APPLICATION OF FASB ASC NO. 740-10 IS TO BE RECOGNIZED AS AN ADJUSTMENT TO OPENING NET ASSETS. CTEQ BELIEVES THAT IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN, AND AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS. X X X X 0 0 0 0 0 0 0 0 0 LINDA ROSEN 250000 0 50000 0 0 0 11000 0 210 0 311210 0 0 0 ROBERT W RICHARDSON 154212 0 0 0 0 0 4638 0 8167 0 167017 0 0 0 CLAUS E VON ZASTROW 137154 0 0 0 0 0 8229 0 8899 0 154282 0 0 0 FORM 990, PART VI, SECTION A, LINE 2 GLENN BRITT AND URSULA BURNS - BUSINESS RELATIONSHIP FORM 990, PART VI, SECTION B, LINE 11 AFTER APPROVAL BY CHANGE THE EQUATION'S CEO AND COO/DIRECTOR OF RESEARCH, CTEQ'S FORM 990 IS FILED WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C EVERY CTEQ BOARD MEMBER AND OFFICER ANNUALLY SIGNS A STATEMENT AFFIRMING THAT HE OR SHE (I.) HAS RECEIVED A COPY OF THE CONFLICT OF INTEREST POLICY AND (II.) WILL COMPLY WITH THE POLICY. WITH RESPECT TO ANY BOARD DISCUSSION OR DECISION INVOLVING MATTERS COVERED BY THIS POLICY, THE MINUTES OF THE BOARD MEETING AT WHICH SUCH DISCUSSION OR DECISION TAKE PLACE MUST REFLECT IN DETAIL THE BOARD DELIBERATIONS AND THE VOTING PROCESS, SPECIFICALLY INDICATING THAT THE DIRECTOR OR OFFICER WHOSE SITUATION WAS CONSIDERED WAS NOT PRESENT IN THE ROOM EITHER DURING THE DISCUSSION OR FOR THE VOTE. IN ADDITION, ANY MARKET DATA OR INFORMATION CONSIDERED BY THE BOARD IN APPROVING OR DISAPPROVING A PROPOSED TRANSACTION COVERED BY THIS POLICY MUST BE ATTACHED TO THE MINUTES OF THE BOARD MEETING AT WHICH SUCH CONSIDERATION TOOK PLACE. FORM 990, PART VI, SECTION B, LINE 15 THE FOUNDING MEMBERS OF CTEQ RETAINED THE SERVICES OF TERRA SEARCH PARTNERS, AN EXECUTIVE SEARCH FIRM HEADQUARTERED IN CALIFORNIA. PART OF THE PRACTICE OF THIS SEARCH FIRM INCLUDES NON-PROFITS; THE PERSON LEADING THE SEARCH FOR CTEQ PRESENTED COMPARABLE SALARY DATA FOR THE CEO POSITION TO THE FOUNDING MEMBERS, WHO SETTLED ON THE FINAL AMOUNT. THE GATES FOUNDATION DONATED THE SERVICES OF THE MONITOR GROUP TO HELP CONCEPTUALIZE STAFFING NEEDS OF THE NEW ORGANIZATION AND RECOMMENDED ASSOCIATED COMPENSATION FOR EACH POSITION. ONCE THE BENCHMARK SALARY LEVEL WAS SET FOR THE CEO, RECOMMENDATIONS FROM THE MONITOR GROUP, EXPERIENCE AND EXISTING COMPENSATION LEVELS OF THE INDIVIDUALS BEING HIRED WERE CONSIDERED IN MAKING SALARY OFFERS. FORM 990, PART VI, SECTION C, LINE 19 CTEQ MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST. IN ADDITION, CHANGE THE EQUATION WILL MAINTAIN ITS FORM 990 IN GUIDESTAR'S DATABASE OF INFORMATION ON NON-PROFIT ORGANIZATIONS.