<html><body><div style="font-family: Arial; font-size: 12pt; color: #000000"><div><span style="background-color: rgb(255, 255, 255); color: rgb(29, 33, 41); font-family: inherit; font-size: large; white-space: pre-wrap;">Meg,</span></div><div style="color:#000;font-weight:normal;font-style:normal;text-decoration:none;font-family:Helvetica,Arial,sans-serif;font-size:12pt;"><div style="font-family: Arial; font-size: 12pt; color: #000000"><div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">Why pick on me? Didn't Coate and Aigner each cost KZYX many thousands of dollars in severance pay?</span></div><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span></div><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">A totally unnecessary -- and unanticipated, unbudgeted -- cost?</span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">Because the station had no policy on accrued vacation and sick time, Coate and Aigner each racked up a huge accrual that KZYX had to pay out in hard-earned dollars -- most of the severance, I'm guessing, was paid out in listener dollars from Pledge Drives, although Coate's and Aigner's avarice and KZYX's lack of policy never got mentioned during Pledge Drives.</span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">KZYX had no policy on vacation and sick time accruals, and,thus, the liability was, in theory, limited only by Coate's eight years of employment and Aigner's 20-plus years of employment. That's was a lot of money. Severance was a huge payday for both Coate and Aigner.</span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">Meanwhile, whatever legal defense I cost KZYX could have been easily avoided by the station, if it had been compliant with FCC regulations.</span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">Now, I fear, KZYX will soon be defending itself again with the IRS over its fraudulent Form 990s. </span></div><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span></div><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">The CPB can't be far behind in an audit of KZYX.</span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">So here's my advice to Ms. Muchowski or anybody else contemplating a KZYX Board seat: Given KZYX's lack of real accounting and audit standards, given its fraudulent IRS Form 990 tax returns, and given its indebtedness to NPR, the CA Department of Forestry, American Radio International, Pacifica and others, and given its unpaid balance on the station's letter of credit at the Mendocino Savings Bank, any new Board Director at KZYX should have cause for worry. </span></div><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span></div><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">Real cause for worry.</span></div><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span></div><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">A nonprofit's directors are usually -- but not always -- protected from personal liability for lawsuits against the nonprofit. In California, once an organization is incorporated, its directors or trustees, officers, employees, and members usually won't be on the hook personally for the nonprofit's debts or liabilities. That includes unpaid organizational debts and unsatisfied court judgments against the nonprofit.</span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">Exceptions to the Limited Liability Rule</span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">In a few situations, people involved with a nonprofit corporation can be held personally liable for its debts. A director or officer of a nonprofit corporation can be held personally liable, if he or she:</span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">1. personally and directly injures someone</span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">2. personally guarantees a bank loan or a business debt on which the corporation defaults</span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">3. fails to ensure that the nonprofit deposits taxes (such as payroll and property taxes) or files necessary tax returns</span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">4. does something intentionally fraudulent, illegal, or clearly wrong-headed that causes harm, or</span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">5. co-mingles nonprofit and personal funds.</span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span><span style="font-family: inherit; font-size: large;">Cheers,</span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;"> </span></div></div><div style="font-family: Helvetica, Arial, sans-serif; color: #1d2129; font-size: 14px; white-space: pre-wrap; background-color: #ffffff;"><div class="_1mf _1mj" style="position: relative; direction: ltr; font-family: inherit;"><span style="font-family: inherit; font-size: large;">John Sakowicz</span></div></div></div><div><br></div><hr id="zwchr"><div style="font-size: 12pt; font-family: Helvetica, Arial, sans-serif;"><b>From: </b>"Val Muchowski" <vjmuchowski@gmail.com><br><b>To: </b>"Meg Courtney" <meg@megcourtney.com><br><b>Sent: </b>Saturday, March 18, 2017 9:45:14 AM<br><b>Subject: </b>KZYX Board<br><div><br></div><div dir="ltr"><blockquote style="font-size: 12.8px;"><div style="word-wrap: break-word;"><div>Dear Val,</div><div><br></div><div>KZYX is in a bit of trouble and I'm turning to you for HELP. KZYX has 9 board member seats. As you are aware we are having an election for 3 seats - dist. 3 & dist 4. and an at large seat. The 2 districts are unopposed but one of the candidates just let us know she will NOT be running (health reasons) so that seat will be open Meanwhile Benj Thomas (from Ukiah) has just stepped down, and furthermore there is another sitting board member who would like to step down if we find someone to fill that seat. So, as you can see this now leaves us with <b>3 open seats</b> on the board. NOT GOOD! </div><div><br></div><div>Was talking to Rachel Binah today and she reminded me that you are the PERFECT person to ask about this. <b>Here is an opportunity to get some women on a board!</b> At this point we can't have another election but we CAN APPOINT people. Appointees do NOT need to come from any particular district so this makes it easy. No campaigning, but of course they would need some kind of BIO. We will be holding an Orientation for new Board Members on <span class="gmail-aBn">APRIL 15</span> in Ukiah - pretty much an all day affair - but important.</div><div><br></div><div>Can you help with this? Send out the word? Encourage folks to join up? Please forward my email if there are any questions about KZYX that I can answer.</div><div><br></div><div>Meanwhile please vote for Jenness Hartley. She is an incumbent & has been good for the station. Sakowicz is a nightmare; he has cost the station thousands of dollars in legal fees.</div><div><br></div><div>Hope we can conjure up some good sturdy woman who want to help our great little community radio!</div><div><br></div><div>Thanks,</div><div>Meg</div></div></blockquote></div></div><div><br></div></div></div><div><br></div></div></body></html>