Reed Foundation

The Reed Foundation was established for the sole purpose of making payments to charitable organizations within the meaning of sections 501(c)(3) and 170(c)(2) of the internal revenue code. It is anticipated that the Foundation will continue not to carry on any activities other than (i) receiving contributions, (ii) distributing the income so as not to become subject to the tax on undistributed income under section 4942, and (iii) distributing the income and/or principal of the trust to charitable organizations. The income received from the passive sources on lines 3, 4 and 8 above are the result of investing the corpus of the Foundation to provide the funding of income necessary to meet the 5% minimum investment return qualifying distribution requirements of non-operating foundations.