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Ten Questions for the Kochs Statement, March 2011, from David Koch: Cato is viewed as one of the

nations foremost upholders of advancing the idea of liberty. I am proud of and believe Catos success has been due to its outstanding leadership, including various groups of accomplished board members who have brought a diverse set of views and experiences to advance Catos vision. Statement, March 2012, from David Koch: Cato is not nearly as effective as it could be. This is, in large part, due to the behavior and management practices of its CEO .... [T]he current Cato board has allowed this behavior .... Having a board in thrall of the CEO has been the downfall of many nonprofits. ... [Ed Crane] should be replaced as soon as possible preferably within six to eight weeks. 1. What acts or events triggered your move to take control of the Cato Institute, which you praise as one of the nations foremost upholders of advancing the idea of liberty? 2. Why applaud Catos outstanding leadership while insisting its CEO be replaced in six to eight weeks? Why commend Catos accomplished board members for bringing a diverse set of views and experiences to advance Catos vision, and then remove four directors? 3. Catos board, before you altered its composition, comprised civic and business leaders who donated more than $30 million to the Institute. Those same persons determined the CEOs compensation and his tenure in that position. Is that a board in thrall of the CEO or vice versa? 4. Catos criteria for board members include: (a) no dependence on the Institute, management, or shareholders; (b) commitment to libertarian principles; and (c) willingness and ability to generate significant financial support. You were not happy with the Institutes choice of directors. Which of the selection criteria would you change or delete? 5. Virtually all your appointees and nominees for Catos board are not libertarians, had not previously expressed interest in the Institute, are political activists, and serve you in order to promote the Koch corporate and political agenda. Is that the type of independent director that furthers our mission? 6. You have written, "Our hope is that the commitment to advancing a free society will become Catos overriding agenda." What do you believe is currently Cato's overriding agenda? If it does not advance a free society, why then are you proud of ... Catos success? 7. On March 1, after filing a lawsuit seeking control of Cato, you said your purpose was to ensure that Cato stays true to its fundamental principles. What are those principles? How has Cato not been true to them? 8. You profess concern about the damaging impact of media reports. Why did you instigate the public relations campaign by orchestrating an exclusive story about your lawsuit in Politico? 9. Why are you engaged in a takeover attempt that will grievously injure the movement for individual liberty that you endorse? What specifically has Cato not done that you want it to do? What has it done that you would like it not to do? 10. How could an Institute owned by the Kochs, whose board is appointed by the Kochs, be viewed as a credible source of non-partisan, non-aligned, independent commentary on vital public policy questions?

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