Choptank Electric Cooperative Inc

“Please see attached certified copy of the amended bylaws of the Cooperative accompanied by a brief description of the major changes.”

“Choptank Electric Cooperative is an electric cooperative that delivers electricity to the members of the cooperative. The members elect the board of directors, which is the governing body of the cooperative.”

“All members of Choptank Electric Cooperative receive one vote with respect to selecting the Cooperative's board of directors.”

“Certain decisions of the governing body are subject to approval by the members as provided for in the cooperative bylaws.”

“The form 990 is made available to all board members prior to being filed.”

“Choptank's written conflict of interest policy requires board members to sign a statement annually that says that they are not in violation of the conflict of interest policy. It also states that all potential conflicts or questions must be directed to the attention of the Cooperative's general counsel.”

“Periodically the Cooperative has an outside consultant review the range of compensation at the cooperative compared to industry ranges. The national rural electric cooperative association annually publishes a salary survey that is also used as a benchmark for compensation in addition to annual surveys performed by the VA, MD, DE Association. The board of directors approves the salary of the CEO.”

“Periodically the Cooperative has an outside consultant review the range of compensation at the cooperative compared to industry ranges. The national rural electric cooperative association annually publishes a salary survey that is also used as a benchmark for compensation.”

“Governing documents and bylaws are available on the Cooperative website. The 990 is available upon request.”

“The Cooperative participates in the NRECA Group Defined Pension Plan. As part of this plan, participants are required to recognize the actuarial increase in the value of their account on the form 990. The contribution rate for participants in the plan IS the same for all individuals in the plan. The change in actuarial value for each participant, however, varies with age. In other words, the older a participant is, the greater the increase in that individual's change in actuarial value with all other things being equal.”

“Contributions in aid of construction not revenue per gaap = -$1960327”

“Net retirement of capital credits = -$2493543”

“Non-cash patronage allocations not revenue per irs = $1268143”

“Other comprehensive income = $2234787”

“Patronage div paid to members' accts not expense per gaap = $7151356”

“Travel costs includes the expenses of purchasing, leasing, operating, and repairing any vehicles owned by the Corporation and used in the Corporation's activities. Travel costs also include transportation costs, meals and lodging, and per diem payments.”

“Patronage dividends ARE paid to members' accounts in accordance with the pre-existing obligation in Choptank Electric Cooperative's by-laws. The Cooperative is obligated to pay by credits to a capital account for each patron all such amounts in excess of operating costs and expenses. IRS instructions for line 4 changed in 2011 to include patronage dividends paid by section 501(c)(12) organizations to their members. Accordingly, these amounts are now reported on line 4.”