Bakery Drivers' Welfare Fund

“The Trust established under the Fund to hold the Fund's assets is intended to qualify pursuant to Section 501(c)(9) of the Internal Revenue Code ("IRC"), and accordingly, the Trust's net investment income is exempt from income taxes. The Plan has obtained a favorable tax determination letter from the U.S. Treasury Department, Internal Revenue Service dated November 25, 2013. The Trustees of the Fund believe that the Plan, as amended, continues to qualify and to operate in accordance with applicable provisions of the Internal Revenue Code. U.S. GAAP requires Fund management to evaluate tax positions taken by the Fund and recognize a tax liability (or asset) if the Fund has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The Fund's Trustees have analyzed the tax positions taken by the Fund and have concluded that as of October 31, 2016 and 2015, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Fund is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Fund's Trustees believe the Fund is no longer subject to income tax examinations for years prior to 2013.”

“Change in Plan's Total Benefit Obligations -284,011.”

“Part X, Line 2: The Trust established under the Plan to hold the Fund's assets is intended to qualify pursuant to the Internal Revenue Code (IRC) Sect. 501(c)(9), and accordingly, the Trust's net investment income is exempt from Income taxes. The Plan has obtained a favorable tax determination letter from the U.S. Treasury Dept. of the IRS. The Trustees of the Fund believe that the Plan, as Amended, continues to qualify and to operate in accordance with applicable provisions of the IRC, therefore no provision for income taxes was necessary.”