-7-
administered and distributed as provided elsewhere in
this agreement. * * *
B. Termination of Trust. Except as otherwise
provided in this agreement, at the end of the Annuity
Term, Trustee shall distribute the remaining net
income, if any, and principal of the trust not required
to be paid out in satisfaction of the final Annuity
payment, as provided in Article Six below.
C. Annual Payment, Additional Contributions, Etc.
During the Annuity Term and until the final Annuity
payment has been made, the following provisions will
apply with respect to the trust estate:
1. Trustee shall distribute the Annuity in
at least one annual payment at the end of each taxable
year, except for the taxable year in which the Annuity
Term ends, when that payment will be made by the end of
the Annuity Term. If Trustee deems it to be desirable,
Trustee may pay less than the full Annuity during any
taxable year, but Trustee must pay any unpaid amount no
later than the due date for filing the trust’s income
tax return for that taxable year, without regard to
extensions. In addition, Trustee may, in its sole and
absolute discretion, distribute all or a portion of the
Annuity in monthly, quarterly, semi-annual installments
or at any other time the Trustee deems appropriate,
subject to the time limitations of the prior sentence.
* * * * * * *
D. Qualified Annuity Interest. I intend that my
retained annuity interest in this trust (and the
annuity interest of my wife[1] if she survives me and
receives the Annuity under paragraph E below) be a
“qualified annuity interest” as defined in Code section
2702(b)(1) and Treasury Regulation Section 25.2702-3(b)
and (d). All provisions of this agreement are to be
interpreted accordingly and any provision of this
agreement inconsistent with that intention is to be of
no effect. In furtherance of this intention, I
specifically empower Trustee to amend this trust during
the Annuity Term for the sole purpose of complying with
the requirements of the foregoing Code section and
Treasury Regulations, and any such amendment will apply
retroactively to the inception of the trust. No power,
right, or duty under this agreement will be effective
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Last modified: May 25, 2011