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agreed that with respect to assets contributed by the WTC trusts,
the combined custodian and trustee fees would not exceed current
charges. However, they indicated that “new” fees would be
charged for custody of stock contributed by decedent’s Revocable
Trust. Mr. Sweeney indicated that this issue would have to be
analyzed further and negotiated.
Mr. Sweeney reported the foregoing to decedent in a letter
dated September 5, 1997, and also on that date requested that
Ms. Lee research certain of the issues raised. On September 22,
1997, Mr. Sweeney sent a further letter to decedent indicating
that contribution of only DuPont stock to the business trust
appeared, based on the research performed, to avoid the
investment company problem. Mr. Sweeney asked decedent to
consider whether proceeding on that basis would accomplish his
objectives.
During late 1997, discussions continued between Mr. Sweeney
and WTC representatives, with Mr. Sweeney making several
proposals to address WTC concerns. In particular, following
analysis by Mr. Dinneen of holdings of the various trusts,
Mr. Sweeney proposed that, in order to avoid characterization as
an investment company for income tax purposes under section
721(b), two separate business trusts be created. One would hold
exclusively DuPont stock, and the other would hold only Exxon
shares.
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