Choptank Electric Cooperative Inc

“Please see attached certified copy of the amended bylaws of the Cooperative.”

“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. Each member has one vote in each election or question brought to a vote of the members.”

“All members of Choptank Electric Cooperative receive one vote with respect to electing 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, including all amendments of bylaws.”

“The form 990 is initially completed by the Cooperative's CPA firm. Thereafter, a copy is provided to the Cooperative's management and general counsel for review and comment, and 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 for his advice as to how to proceed under the circumstances.”

“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 = -$1642039”

“Net retirement of capital credits = -$2553406”

“Non-cash patronage allocations not revenue per irs = $1178295”

“Other comprehensive income = $0”

“Other comprehensive loss = -$642295”

“Patronage div paid to members' accts not expense per gaap = $806595”

“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.”

“For each Cooperative Service (or group of Cooperative Services if permitted by law) supplied for a fiscal year, CEC shall equitably allocate to each patron, in proportion to the quantity or value of the Cooperative service(s) patronage by the patron during the fiscal year, CEC's operating earnings during the fiscal year. "Operating earnings" (also known as "patronage margin") for a cooperative service means the amount by which CEC's operating revenues (also known as "patronage sourced revenues") from supplying CEC service(s) exceed CEC's operating expenses, costs and reserves permitted by law (also known as "patronage sourced expenses") of supplying CEC services(s).”