Echo Resource Development Inc.

“The Principal/Executive Director and Board Treasurer prepare Echos 990 within the first 3 months of the new year following the close of the previous fiscal year. The 990 is posted on a section of Echos website that is accessible to Board members only for review. Board members are notified once the 990 has been posted and are encouraged to review. Board members may review and ask questions of the Principal/Executive Director and Board Treasurer through the 15th day of January when the 990 is scheduled to be submitted to the IRS. The submitted 990 is made available in the same Board only area.”

“Article 6.00 Purpose. The purpose of this Board conflict of interest policy is to protect Echos interests when it is contemplating entering into a transaction or arrangement that might benefit the private interests of an officer or director of Echo or might result in a possible excess benefit transaction. This policy is intended to supplement, but not replace, any applicable state and federal laws governing conflicts of interest applicable to nonprofit and charitable organizations. This policy is also intended to identify independent directors. Articles 6.01 Definitions. Interested person. Any director, principal officer, or member of a committee with governing board delegated powers, who has a direct or indirect financial interest, as defined below, is an interested person. Financial interest. A person has a financial interest if the person has, directly or indirectly, through business, investment, or family: a. An ownership or investment interest in any entity with which Echo has a transaction or arrangement, b. A compensation arrangement with Echo or with any entity or individual with which Echo has a transaction or arrangement, or c. A potential ownership or investment interest in, or compensation arrangement with, any entity or individual with which Echo is negotiating a transaction or arrangement. Compensation includes direct and indirect remuneration as well as gifts or favors that are not insubstantial. A financial interest is not necessarily a conflict of interest. A person who has a financial interest may have a conflict of interest only if the Board or Executive Committee decides that a conflict of interest exists, in accordance with this policy. Independent Director. A director shall be considered independent for the purposes of this policy if he or she is independent as defined in the instructions for the IRS 990 form or, until such definition is available, the director -- a. is not, and has not been for a period of at least three years, an employee of Echo or any entity in which Echo has a financial interest; b. does not directly or indirectly have a significant business relationship with Echo, which might affect independence in decision-making; c. is not employed as an executive of another corporation where any of Echos executive officers or employees serve on that corporations compensation committee; and d. does not have an immediate family member who is an executive officer or employee of Echo or who holds a position that has a significant financial relationship with Echo. Article 6.02 Duty to Disclose. In connection with any actual or possible conflict of interest, an interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the Board or Executive Committee. Article 6.03 Recusal of Self. Any Executive Committee member may recuse himself or herself at any time from involvement in any decision or discussion in which the member believes he or she has or may have a conflict of interest, without going through the process for determining whether a conflict of interest exists. Article 6.04 Determining Whether a Conflict of Interest Exists. After disclosure of the financial interest and all material facts, and after any discussion with the interested person, he/she shall leave the Board or Executive Committee meeting while the determination of a conflict of interest is discussed and voted upon. The remaining Board or Officers shall decide if a conflict of interest exists. Article 6.05 Procedures for Addressing the Conflict of Interest. An interested person may make a presentation at the Board or Executive Committee meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement involving the possible conflict of interest. The President of the Executive Committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the pr”

“Echos bylaws are available for review to the general public through the organizations Knowledge Base. The Knowledge Base is accessible through the organizations website and allows the public to view the bylaws and other documents as approved by the Board. Additionally, the persons may request via email, phone or through the Knowledge Base messaging system additional documents.”

“Difference between book and tax depreciation. Book depreciation was based on three months from acquisition to year end. Tax depreciation was calculated based on the half year convention. This will cause a book to tax difference in the first and last years of the assets life”