Parker-Hannifin Corporation - Page 3

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          products controlling motion, flow, and pressure.  On June 30,               
          1987, petitioner had approximately 28,708 employees, of whom                
          approximately 1,854 were represented by unions.                             
               On June 30, 1987, petitioner established the Parker-Hannifin           
          Employees Welfare Benefit Trust (the VEBA Trust) with Ameritrust            
          Company National Association (Ameritrust) as trustee.  The VEBA             
          Trust was to serve as the funding medium for certain employee               
          welfare benefit plans that petitioner intended to make up a                 
          Voluntary Employees’ Beneficiary Association (VEBA).  Petitioner            
          established the VEBA Trust pursuant to the terms of the Trust               
          Agreement Creating the Parker-Hannifin Corporation Voluntary                
          Employees’ Beneficiary Association (Trust Agreement).                       
               The VEBA Trust was created to provide “health care,                    
          disability, life, and other welfare benefits under the Plans to             
          Members, Dependents, and Beneficiaries, other than post-                    
          retirement health care and life benefits for ‘key employees,’ as            
          that term is defined in Section 416(i) of the Code.”  Under the             
          terms of the Trust Agreement:                                               
               The Corporation [petitioner intended] to make                          
               contributions, on a sound actuarial basis, to the                      
               Trustee, on or before the last day of the Corporation’s                
               fiscal year, in such amounts as determined to be                       
               necessary to provide benefits required under the Plans.                
               The Corporation’s determination of such contributions                  
               shall be final and conclusive upon all persons.  * * *                 
          The Trust Agreement also provided that “Notwithstanding any                 
          provision of this Agreement to the contrary, in no event shall              
          the Corporation be required to continue to fund benefits under              
          any Plan through the Trust.”  Contributions to the VEBA Trust               



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Last modified: May 25, 2011