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The named beneficiaries of the Rashi Trust were:
[Mr. Taub], Zalman Melnik, the Descendants of any of
the foregoing individuals, including, without
limitation, [the names and ages of Mr. Melnik’s
children are omitted], the Spouses of any of the
foregoing individuals, and any organization qualifying
as a charitable organization according to the laws of
Israel, Bermuda, or the United States of America.
* * *
Additionally, the Rashi Trust beneficiaries included, in general,
any other trusts that exist for the benefit of the named
beneficiaries. The Rambam Trust contained identical provisions
naming its beneficiaries but, in place of Zalman Melnik and his
children, substituted Moshe Melnik and his children. These
beneficial interests were not fixed or definable interests with
respect to all or any portion of the trusts.
The trust indentures appointed the Melniks to serve as trust
protectors of their respective trusts. As trust protectors, the
Melniks had the right to replace Bermuda Trust, with or without
cause, with an independent corporate trustee. The successor
trustee could not be a corporation in which a beneficiary
(including Mr. Taub) or a trust protector held a direct or
indirect economic interest greater than 1 percent.
In addition, the Melniks’ respective trust indentures
granted them “special testamentary limited powers of appointment”
over the trusts. Pursuant to these powers of appointment, the
Melniks were authorized to (1) direct outright all or any part of
the income and/or principal to any person or to any entity or (2)
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Last modified: May 25, 2011