Foothills Rural Telephone Cooperative

“Must be a member to receive telephone service. Each member has 1 vote. May have more than 1 service per membership.”

“Nominating committee meets every year there is an election to select a member to run for director. Any member who has lived in their district for more than 240 days and with a petition signed by 10% of eligible members, if not nominated by the committee, may run for director.”

“Articles of Incorporation can only be changed by a 2/3 majority vote of the members. Bylaws may be altered, amended, or repealed at any regular or special meeting by a majority vote of the Board of Directors.”

“Directors are furnished a draft copy to review prior to filing. May make inquires of information contained in the copy. Additionally, directors meet with he independent auditor and are able to ask questions at that time.”

“A statement is signed by the director acknowledging the policy and disclosing any potential conflicts.”

“15a. CEO salary based on Contract and survey of other telephone companies as compiled by national telephone association.15b. Wage and Salary Plan has been developed based on state, regional, and national survey of telephone cooperatives. Wages are based on job classifications and responsibilities.”

“The ByLaws and annual financial information is given to each member on an annual basis. Each year annual meeting of members is held. Annual financial information is also available on the Kentucky Public Service Commission website.”

“Comprehensive income-postretirement ben = $150168”

“Margins allocated to members = $933215”

“Memberships issued = $3026”

“Other equities = $1769”

“Refunds of capital credits = -$1388297”

“Represents patronage capital allocated to members in accordance with the bylaws of the Cooperative. This reporting results in a difference between book income and income reported on the Form 990 by the same amount.”