Estate of Claude C. Focardi, Deceased, Nina M. Focardi, Personal Representative - Page 7

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               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