California Domestic Water Company

“As of june 30, 2014, california domestic water company had 411 members.”

“The members annually elect the governing body.”

“The form 990 is reviewed and signed by the company president.”

“Directors are asked to acknowledge receipt of the policy. As for employees, the policy is part of the employee handbook and they are asked to acknowledge that they have read the handbook at the start of employment and/or when the handbook is revised. Full disclosure shall be made to the chairperson of the company who shall bring these matters to the attention of the board of directors. The board of directors shall then determine whether a conflict exists or, in the presence of an existing conflict, whether the contemplated transaction may be authorized as just, fair and reasonable as to the company. Conflict of interest policy: i. Reason for statement california domestic water company (herein "company") is a tax-exempt corporation. Maintenance of the tax-exempt status of the company is essential both for its continued financial stability and for the receipt of contributions and support. For these and other reasons, the operations of the company are in the nature of a public trust, subject to scrutiny by the government, tax authorities and members of the public. As between the directors, officers, management employees, and the company, there exists a fiduciary duty which carries with it broad and unbending duty of loyalty. The directors, officers, and management employees have the responsibility of administering the affairs of the company honestly and economically and of exercising their best care, skill and judgement for the sole benefit of the company. Those persons shall exercise the utmost good faith in all transactions involved in their duties and they shall not use their positions or knowledge gained therefrom for their personal benefit. The interests of the company must have the first priority and all purchases of goods and services must be effected on a basis securing for it full competitive advantages as to product, service, and price. "directors, officers, and management empoyees are not permitted to profit personally at the expense of the company. In their dealings with the company, all directors, officers and management employees must be ever mindful of potential conflicts of interest. A conflict of interest exists or may exist any time an officer, director, or management employee is directly involved in a transaction with the company or is affiliated, associated, or in any way related (including ownership or employment) with a corporation, individual, or other entity involved in a transaction with the company. Before entering into discussions or transactions presenting such problems, the director, officer, or management employee shall be expected to fully disclose to the company the interst which may produce the conflict and all facts necessary to the company to make an informed decision with respect to the conflict. Distribution of this statement does not imply lack of confidence in the recipients. Rather, the statement is to serve as a reminder of the high fiduciary standards which must guide all those related to the operations of the company and of their duty to reveal any conflict problems in advance. Ii. Persons concerned this statement is directed not only to directors and officers but to all employees who can influence the actions of or commit the company; all, for example, who make purchasing decisions, all other persons who might be described as "management personnel", and to all who have confidential information concerning the company. Iii. Areas in which conflicts may arise conflicts of interst may arise in the relations of directors, officers and management employees with: (1) persons and firms supplying good and services company. (2) persons and firms from whom the company leases property and equipment. (3) persons and firms with whom the company is dealng or planning to deal in connection with the purchase or sale of real estate, securities or other property. (4) agencies, organizations and associations which affect the operations of the corporation. Iv. Nature of conflicting interest in a directors,”

“Through performance review and analytical comparison of pay rates to other water companies presented to the board for approval. The review and approval of compensation is documented in the board minutes.”

“Governing documents, conflict of interest policy, and financial statements are available to the public upon request.”

“To compensate the company's chairman for the significant amount of time he dedicated to the company's operations, the board of directors approved the doubling of the stipend paid to chairman jones. Over time, the chairman's time commitment lessened and he requested that the board eliminate the double payment of stipend for the chairman. Chairman jones then also voluntarily repaid the double compensation he received from 2011 to 2014. The repayment totaled $70,500 to cadway, inc. And $5,850 to cal domestic water. Summary of changes to amended return: 1) part vii section a: amended richard jones' reportable compensation from $3,600 to $1,800 from cdw, and from $42,350 to $21,900 from cadway. 2) part ix statement of functional expenses: amended line 5 from $12,600 to $10,800. 3) part x balance sheet: increased assets line 5 by $1,800, for a receivable balance of $5,850. Also increased retained earnings by $5,850, which represents a decrease in expenses for the increase in related receivable.”

“Change in treasury stock -136,088. Issuance of preferred stock 27,418,520.”