Dudek Health & Welfare Trust

PART X, LINE 2:

“The trust funding certain benefits of the plan received an exemption letter from the internal revenue service (irs) dated may 22, 2023, with an effective date of exemption of january 1, 2021, stating that the trust is tax-exempt under section 501(c)(9) of the code as a voluntary employee beneficiary association (veba). 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 2024 for unrelated business taxable income in addition, the plan and the trust are required to operate in conformity with the code to maintain the taxexempt status of the trust. The plan administrator believes that the plan is being operated in compliance with the applicable requirements of the code and, therefore, believes that the related trust is tax exempt. The internal revenue service has determined and informed the company by a letter dated january 1, 2021 that the plan, and the trust established under the plan, is designed in accordance with applicable sections of the internal revenue code (irc). Although the plan has been amended since receiving the determination letter, the plan administrator believes that the plan is designed and is currently being operated in compliance with the applicable requirements of the irc and erisa as a veba. As a result of the plan's funding policy, from time to time it may be subject to income taxes. No federal or california unrelated business income taxes were incurred for the years ended december 31, 2024 and 2023. 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 the plan has taken an uncertain position that more likely than not would not be sustained upon examination by the irs. No uncertain positions have been identified that would require recognition of a liability (or asset) or disclosure in the financial statements as of the years ended december 31, 2024 and 2023. The plan is subject to routine audits by taxing jurisdictions; however, there are currently no irs audits for any tax periods in progress.”