Heart of Texas Electric Cooperative

“MEMBERS”

“All directors on the board are elected by coop members”

“In the event that there is an offer to purchase the coop, all or substantially all of the coops assets, the members would receive notification and would have the right to vote the offer up or down.”

“Reviewed by the board prior to filing.”

“Parties are required to disclose any situation that would give rise to conflict to the ceo or board president at the time the conflict is identified or originates.”

“An outside consultant is retained to review salaries, compile comparative data and make recommendations to the board of directors for consideration.”

“An outside consultant is retained to review salaries, compile comparative data and make recommendations to the board of directors for consideration.”

“AVAILABLE UPON REQUEST”

“Form 990, part ix the cooperative's accounting records are maintained in accordance with the uniform system of accounts required by its regulatory agency. The uniform system of accounts does not record expenses in the expense categories provided on part ix lines 1-23. Therefore, other expenses line 24 includes expenses that are described in lines 1-23, but reported using the uniform system of accounts.”

“The 990 return was originally filed using incomplete income statement information. As a result of updating the income statement numbers, the amended return has updated values for the following areas: part v section v, lines 11a and 11b part viii, all lines on this page part ix, lines 4, 20, 22, 24a, 24b, 24c, 24d, 25 part xi, lines 1, 2, 3, and 8 schedule d, part xi, lines 1, 3 and 5 schedule d, part xii, lines 1, 3, 4b, 5 and related part xiii supplemental information schedule o, page 3, other changes in net assets explanation”

“Increase in memberships 2,440 equity in earnings 127,545 patronage dividend allocation 425,969 retirement of capital credits -45,161 other -1,082,036 total -571,243”