Thumb Electric Cooperative of Michigan Inc

“The Cooperative has members. Each member has one voting right.”

“The Board of Directors is elected by the members.”

“Members vote on items affecting the bylaws of the Cooperative.”

“There are no other committees that act on behalf of the governing board.”

“The Form 990 is reviewed and approved by the General Manager and Accounting Manager. The form is then provided to the Board before it is filed with the IRS.”

“The Board and Management staff conduct a yearly review for any conflicts. The General Manager reviews the documents and determines if a conflict exists. The General Manager would request that individual abstain from voting.”

“The Board annually reviews and approves the compensation for the General Manager and Accounting Manager in conjunction with NRECA compensation study. The Board review and approval is substantiated in the Board minutes.”

“The governing documents, conflict of interest policy and financial statements are available to the public upon request.”

“Included in column "F", estimated amount of other compensation, is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase is as follows for the Part VII individuals: Bradley Essenmacher: $126,306 Deborah Peruski: $97,585 Brandon Legault: $37,975 Michael Cleland: $10,096 Gary Burns Jr: $7,784 James Vogel: $20,118 Raymond Eskau: $9,300 Michael Kozlowski: $16,317 These amounts are estimates in the increase of the value of the plan and are not current year expenses of the cooperative. The current year expense for this defined benefit plan was as follows: Bradley Essenmacher: $63,989 Deborah Peruski: $31,966 Brandon Legault: $39,990 Michael Cleland: $21,731 Gary Burns Jr: $23,177 James Vogel: $23,177 Raymond Eskau: $21,731 Michael Kozlowski: $22,163”

“The Cooperative has interpreted the instructions to this line and section to mean patronage capital allocated for the year, rather than patronage capital retired. This is consistent with the Cooperative bylaws.”

“The labor, pension, and payroll taxes reported on lines 5-10 are already included in distribution expense, administrative & general expense and customer expense. Therefore, these amounts are being subtracted out as an other deduction included on line 24e in the amount of $(8,522,207).”

“Earnings of Wholly Owned Subsidiary 118,429. Patronage Capital Allocated 2,895,326. Change in Membership 2,210. Other Equity Transactions 9,435. Retirement of Capital Credits -75,970.”