A & W Cedar Hill Foundation C/O George M Yarbrough Jr

“Line 11a explanation - the form 990 was reviewed in detail by the board of trustees prior to filing with the irs.”

“Each trustee, principal officer, and member of a committee with governing board delegated powers is required to annually sign a statement that affirms that they have (1) received a copy of the conflict of interest policy; (2) have read and understands the policy; (3) have agreed to comply with the policy; and (4) understands that in order to maintain exempt status, the organization must engage in activities which accomplish one or more of its exempt purposes. A provision of the organization's conflict of interest policy is the duty to disclose the existance of any interest in a proposed transaction by providing material facts to the board of trustees and committees considering the proposed transaction. The interested individual is excused from the discussion and vote conducted by remaining board or committee members. All potential and actual conflicts of interest are noted in the meeting minutes including the name of the conflicted individual, the nature of the interest, actions taken to determine if an actual conflict existed, the board or committee's discussion and vote, determination, and alternatives to the proposed transaction.”

“The organization does not make its governing documents, conflict of interest policy, or its financial statements available to the public.”

“Explanation for note receivable the organization owns a promissory note executed by a. & w. Bearings and supply company, inc. This promissory note was specifically bequeathed to the organization by winnie b. Hensarling in her last will and testament. The note is dated august 30, 2006 and is executed by a. W. Bearings and supply company, inc. In its original principal amount of $1,850,189.03 bearing interest at a floating rate fixed annually at 1% over wells fargo banks prime lending rate on january 1st of each year with a maturity date of 120 months after notice of election to divert to installment payments. As indicated, the promissory note was executed by a. & w. Bearings and supply company, inc. George m. Yarbrough, jr. Is the president of a. & w. Bearings and supply company, inc. And is a member of the board of directors of the company and is a member of the board of trustees of the organization. The terms of the promissory note were negotiated at arms length between the decedent, winnie b. Hensarling, and a. & w. Bearings and supply company, inc. And the interest rate is a floating rate of 1% over the prime lending rate.”