Logs Employee Benefit Trust

Part X, Line 2:

“The Voluntary Employees' Benefit Association Trust (VEBA) funding certain benefits under the Plan received an exemption letter from the Internal Revenue Service (IRS) dated September 14, 2006, stating that the trust is tax-exempt under the provisions of Section 501(c)(9) of the Internal Revenue Code (IRC). However, as a result of the Plan's funding policy, from time to time the trust may be subject to income taxes. No federal or state income taxes have been recorded in 2013 for unrelated business taxable income. In addition, the Plan and the trust are required to operate in conformity with the IRC to maintain the tax-exempt status of the trust. The plan administrator believes that the Plan is being operated in compliance with the applicable requirements of the IRC and, therefore, believes that the related trust is tax-exempt. The trust had its Section 501(c)(9) determination revoked by the IRS as of May 15, 2011, as a result of not filing Form 990s for years after 2007. The trust subsequently filed the Form 990s, and applied for 501(c)(9) determination on April 24, 2012. Currently, the trust is awaiting final determination from the IRS, but is recognized by the IRS as a 501(c)(9) from the April 24, 2012 postmark date. The IRS has not issued any guidance to organizations with a gap in their tax exempt status. In lieu of guidance, the trust has determined it has complied completely and to the best of its ability with the filing of all prior years' Form 990s. The trust is awaiting future guidance from the IRS before any other corrective actions are taken. Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if it has taken an uncertain tax position that more likely than not would not be sustained upon examination by the local, state or federal taxing authorities. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan Administrator believes it is no longer subject to income tax examinations for years prior to 2010.”