1. Statement of Revenues for the Fiscal Years 2009-2010 Estimated FY10 REVENUE Estimated Actual FY09 REVENUE VARIANCE SCIENCE INFRASTRUCTURE SODV 1,784,519 25,864,772 (24,080,252) IODP 64,960,877 54,616,532 10,344,345 OOI 95,105,638 13,310,861 81,794,777 TOTAL 161,851,034 93,792,164 68,058,870 Science Support and Research USSSP 7,663,271 3,296,400 4,366,871 CENSUS 2,229,883 1,702,150 527,734 IWGOO 408,518 335,000 73,518 NOPP 809,580 676,700 132,880 TOTAL 11,111,252 6,010,250 5,101,003 EDUCATION NOSB 1,619,160 1,625,160 (6,000) TOTAL 1,619,160 1,625,160 (6,000) IPA 150,921 262,725 (111,804) UNRESTRICTED 619,159* 750,508 (131,349) OTHER** 41,728 202,910 (161,182) GRAND TOTAL $175,393,255 $102,643,718 72,749,537 * Does not include estimated market income ** Other includes MGLI, COSEE, ANDRILL, Nansen

2. Budget Comparison for the Fiscal Years 2009-2010 Budget FY10 ** Est Actual FY09* Variance SCIENCE INFRASTRUCTURE OOI 95,105,638 13,310,86181,794,777 IODP 64,960,877 54,616,53210,344,345 SODV 1,784,519 25,864,772(24,080,252) TOTAL 161,851,034 93,792,164 68,058,870 SCIENCE SUPPORT and RESEARCH USSSP 7,663,271 3,296,4004,366,871 IWGOO 408,518 335,00073,518 COML 2,229,883 1,702,150527,734 NOPP 809,580 676,700132,880 TOTAL 11,111,252 6,010,2505,101,003 EDUCATION NOSB 1,619,160 1,625,160(6,000) TOTAL 1,619,160 1,625,160(6,000) IPA 150,921 262,725(111,804) UNRESTRICTED 660,460 526,473133,987 OTHER/NEW PROJECTS*** 41,728 202,910(161,182) (***MGLI, COSEE, ANDRILL, Nansen) - GRAND TOTAL 175,434,556 102,419,68373,014,873 * Indirect rate of 34% FY09; **Indirect rate 31% maximum FY10

3. Statement of Estimated Revenues for Fiscal Year 2010 TOTAL REVENUE SUB- CONTRACT AMOUNTS OCEAN LEADERSHIP HEADQUARTERS SCIENCE INFRASTRUCTURE SODV$1,784,519$1,749,019$35,500 IODP$64,960,877$62,226,276$2,734,601 OOI 95,105,638$89,238,286$5,867,352 TOTAL$161,851,034$153,213,581$8,637,453 SCIENCE SUPPORT and RESEARCH USSSP$7,663,271$4,220,285$3,442,986 IWGOO$408,518$90,000$318,518 COML$2,229,883$268,500$1,961,383 NOPP$809,580 - TOTAL$11,111,252$4,578,785$6,532,467 EDUCATION NOSB$1,619,160$396,000$1,223,160 TOTAL$1,619,160$396,000$1,223,160 IPA$150,921 - UNRESTRICTED$619,159 - OTHER/NEW PROJECTS$41,728 - TOTAL$175,393,255$158,188,366$17,204,888

4. Statement of Revenues for Fiscal Year 2009 TOTAL REVENUE SUB-CONTRACT AMOUNTS OCEAN LEADERSHIP HEADQUARTERS SCIENCE INFRASTRUCTURE SODV$25864,772 $25,590,695 $274,077 IODP$54,616,532 $53,150,745 $1,465,787 OOI$13,310,861 $10,209,310 $3,101,551 ODP$9,630$0$9,630 TOTAL$93,792,164$88,950,750 $4,841,415 SCIENCE SUPPORT and RESEARCH USSSP$3,296,400$1,815,380$1,481,020 IWGOO$335,000 $41,559 $293,441 COML$1,702,150$114,354$1,587,796 NOPP$676,700 - TOTAL$6,010,250$1,971,292 $4,038,957 EDUCATION NOSB$1,625,160$362,498$1,262,662 TOTAL$1,625,160$362,498$1,262,662 IPA$262,725 - UNRESTRICTED FUND$750,508 - OTHER$193,280 - TOTAL$102,643,718$91,284,540 $11,359,178

5. Detail of Subcontracts for Fiscal Years 2009-2010 FY10 FY 09 VARIANCE SODV Texas A&M University$1,749,019$25,182,318($23,433,298) Columbia University$0$408,377($448,477) TOTAL$1,749,019$25,590,695($23,841,675) IODP Texas A&M University$55,180,003$47,251,691$7,928,313 Columbia University$7,046,273$5,899,055$1,147,219 TOTAL$62,226,276$53,150,745$9,075,531 OOI University of Washington$49,898,968$3,058,669$46,840,299 WHOI$20,985,235$2,999,656$17,985,579 University of California San Diego$12,016,084$2,384,173$9,631,911 Other Subcontracts$6,337,999$1,766,813$4,571,186 TOTAL$89,238,286$10,209,310$79,028,976 Other Programs Various Subcontracts*$4,974,785$2,333,790$2,640,995 GRAND TOTAL$158,188,366$91,284,540$66,903,826 * All subcontracts are less than 100k

6. FY09-FY10 Revenue Comparison

7. Statement of Indirect (G&A) Costs for the Fiscal Years 2009-2010 MAJOR G&A COSTSFY09 TOTALFY10 TOTALVARIANCE Salaries947,0381,639,561692,523 Rent1,115,1501,205,00089,850 Consulting fees263,837319,15055,313 Payroll taxes and fringe benefits293,582518,400224,818 Office/computer equip, serv180,249357,427177,178 Temporary help223,632200,000(23,632) Travel and meetings54,89855,000102 Audit/Accounting fees133,806191,60057,794 Depreciation183,803180,000(3,803) Insurance49,48050,000520 Other direct costs184,475298,205114,130 Office supplies32,00040,2208,220 Legal42,61880,00037,382 TOTAL MAJOR G&A COSTS$3,704,568$5,134,563$1,429,995 TOTAL G&A COSTS Salaries (inc. temps)1,464,2522,357,961893,709 Rent/Off Exp/Dep1,511,2021,782,647271,445 Consulting fees263,837319,15055,313 Travel54,89855,000102 Insurance49,48050,000520 Prof Fees176,424271,60095,176 Other direct costs184,475298,205114,130 TOTAL$3,704,568$5,134,563$1,429,395

8. FY09-FY10 G&A Cost Comparison

9. FTE (with Indirect) per Program PROGRAM FY10 FTE% of FTE IODP 9.715.3% OOI 21.433.9% USSP 6.19.6% NOPP 5.48.5% CoML 5.48.4% USNC - CoML 3.14.8% NOSB 5.18.0% Unrestricted 3.14.9% MGLI 0.20.3% IWGOO 3.14.9% IPA 0.8 1.3% Total FTE 63.2100.0% * Indirect FTE = 14.3

10. FY10 FTEs

11. Comparison of Headquarters Budget and FTE Fiscal Year 2010 PROGRAM PROGRAM FTE (w/G&A)*% FTE HEADQUARTERS BUDGET% BUDGET SODV0.00.0% 35,5000.8% IODP9.715.3% 2,734,60115.8% OOI21.433.9% 5,867,35233.9% NOSB5.18.0% 1,223,1607.1% IWGOO SUPPORT OFFICE3.14.9% 318,5181.8% USSSP6.19.6% 3,442,98619.9% MGLI0.20.3% 41,7280.2% NOPP5.48.5% 809,5804.7% Census8.413.3% 1,961,38311.3% UNRESTRICTED3.14.9% 619,1593.6% NOAA IPA0.81.3% 150,9210.9% Total63.2100.0% 17,204,888100.0% * Indirect FTE = 14.3

12. Speaker Talking Points REVENUE 1.Revenue is expected to increase by 71% in FY10 2.Revenue amount for Ol Headquarters is up 51% 3.Total revenue is strongly influenced by the Science Infrastructure projects - primarily OOI (+$96 M) and IODP (+$64 M). The increase for the IODP budget is a return to (drilling and logging) operations and associated costs. 4.ARRA Funds received for IODP and OOI. ARRA Funds require new management control procedures, new reporting requirements and are under greater public scrutiny 5.SODV is nearing completion. The efforts will end by middle FY10 6.Census is entering its final year. G&A EXPENSES 7.Salary increases due to the new positions expected in FY10 8.Rent: Increase due to the leasing of the new space 9.Office/Computer Equipment: $60K for new database build, $60K for computer hardware for annual upgrade/replacements, licensing upgrade/update, and $90K for contracted computer support