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Dear Skaneateles, LLC (Mr. Hunter Biden),

We are pleased to announce that today we mailed you a check for the May 2016 Eudora Global, LLC distribution.

When the sales transaction occurred in December of 2015, our outside accounting firm recommended that Eudora reserve funds for state tax payments that were due for 2015 calendar year (which the company would have to pay in 2016). These tax obligations have been paid and we are now distributing the remainder of the reserved cash to Members proportionately. Note that the income related to the sale was already included in your preliminary K-1 for 2015 from Eudora.

Additionally, you are receiving a Q1 2016 1st quarter distribution. Unlike the sales transaction mentioned above, you will need to account for this Q1 earnings distribution in your 2016 tax calculations. The cash distribution will be reported on your 2016 K-1.

If you are a Member that resides outside of the state of Illinois, Eudora is obligated by the state of Illinois to withhold and pay the Illinois tax on each Member's behalf (paid directly to the State by Eudora). In calendar year 2014, Eudora made this payment on behalf of all non-Illinois resident Members, however it was not withheld from these Member's distributions. For this reason, if you are not a resident of Illinois, Eudora has withheld your pro-rata share of the 2014 withholding tax (already paid on your behalf) from this distribution; following this round of distributions, the reimbursement to Eudora for this tax payment will be net zero.

Your current distribution is broken down as follows:

$19,172 from the sale proceeds received in 2016 for which the income was included in your preliminary K-1 for 2015, plus
$9,602 from the Q1 2016 1st quarter distribution.

This results in a net check to you of $20,227.

Should you have any questions, please feel free to contact either Jeff Cooper (jcooper@eudoraglobal.com<mailto:jcooper@eudoraglobal.com>) or Randy Delkus (rdelkus@eudoraglobal.com) directly.

Sincerely,

Jeff Cooper and Randy Delkus