Cds Education Inc

“| Employee:, Relationship:, Employee:| Ock Sik Lee, Family Relationship, Ji Ho Park|”

“The Form 990 is reviewed by the organizations board members prior to filing”

“The organization maintains a written conflict of interest policy applicable to its board members and officers. Individuals are required to disclose any actual or potential conflicts of interest including financial interests or relationships with related parties on an annual basis and as situations arise. Disclosed conflicts are reviewed by the board of directors. Individuals with a conflict of interest are required to recuse themselves from discussions and voting related to the transaction. The board evaluates such transactions to ensure they are fair reasonable and in the best interest of the organization. In cases where a conflict is identified after a transaction has occurred the organization reviews the matter and takes appropriate corrective action which may include ratification modification or termination of the transaction. All disclosures and board decisions are contemporaneously documented in the meeting minutes.”

“The organization did not make its governing documents conflict of interest policy or financial statements available to the general public during the tax year. As the organization is in its initial development stage it has not yet established formal procedures for public disclosure of these documents. The organization intends to consider implementing such procedures as operations expand.”

“| Employee Name:, Description:| Ock Sik Lee, No compensation were paid to the CEO| Ji Ho Park, No compensations were paid to directors| Jun Hee Lee, No compensations were paid to directors|”

“| Explanation:| The organization is currently in a development stage and has not yet commenced active program operations. During the tax year the organization engaged in planning coordination and organizational activities in furtherance of its exempt purpose of establishing and operating private primary and secondary educational programs. In connection with these efforts the organization has been in communication with Dalton School an educational institution located in South Korea. The organization is exploring potential future integration with Dalton School; however as of the end of the tax year no legal ownership governance control or operational control relationship exists between the organization and Dalton School. The Chief Executive Officer of the organization also serves as the Chief Executive Officer of Dalton School. This overlap in leadership reflects coordination in planning efforts; however it does not result in legal ownership governance control or operational control by the organization over Dalton School. The organization holds legal title to two real properties located in South Korea. The properties were acquired using funds provided by Dalton School and not by the organization. The organization does not exercise control over the property and does not receive economic benefit from its use. The property is used and managed by Dalton School in connection with its educational activities. Consistent with applicable accounting principles the organization has not recorded the property as an asset in its financial statements as it does not have control or beneficial ownership. The organizations involvement is limited to holding legal title. The organization will evaluate and account for any future changes in its relationship with Dalton School including potential integration in accordance with applicable legal and accounting standards.”