The Cobb Foundation Inc.

Schedule D, Page 4, Part XIII

“The system, the foundation and lake hartwell are not-for-profit corporations and have been recognized as tax-exempt pursuant to section 501(c)(3) of the internal revenue code. The segregated portfolio intends to conduct its affairs in a manner in which it will not be subject to u.s. Federal income tax or georgia income tax. Regional is considered a disregarded entity of the system. The system files a form 990-t to report the unrelated business income tax of springs media that is subject to tax. The system applies accounting policies that prescribe when to recognize and how to measure the financial statement effects of income tax positions taken or expected to be taken on its income tax returns. These rules required management to evaluate the likelihood that, upon examination by the relevant taxing jurisdictions, those income tax positions would be sustained. Based on that evaluation, the system only recognizes the maximum tax benefit of each income tax position that is more than 50% likely of being sustained. To the extent that all or a portion of the benefits of an income tax position are not recognized, a liability would be recognized for the unrecognized benefits, along with any interest and penalties that would result from the disallowance of the positions. Should any such penalties and interest be incurred, they would be recognized as operating expenses. Based on the results of management's evaluation, no liability is recognized in the accompanying balance sheet for unrecognized tax positions. Further, no interest or penalties have been accrued or charged to expense of december 31, 2015 and 2014 of for the years the ended. The system's tax returns are subject to possible examination by the taxing authorities. For federal income tax purposes, the tax returns remain open for possible examination for a period of three years after the respective filing deadline of those returns.”