R-88-600
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CITY OF CLERMONT
RESOLUTIONS
NO. 600
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLERMONT, LAKE
COUNTY, FLORIDA, ADOPTING A TRUST AGREEMENT WITH THE ICMA
RETIREMENT CORPORATION.
WHEREAS, the City of Clermont maintains a deferred compensation
plan for its employees which is administered by the ICMA Retirement
Corporation (the "Administrator"); and
WHEREAS, other public employers have joined together to establish
the ICMA Retirement Trust for the purpose of representing the interests
of the participating employers with respect to the collective investment
of funds held under their deferred compensation plan; and
NOW, THEREFORE, BE IT RESOLVED that the City of Clermont hereby
executes the ICMA Retirement Trust, attached hereto as Appendix B; and
BE IT FURTHER RESOLVED that the City of Clermont adopts the trust
agreement with the ICMA Retirement Corporation, as appears as Appendix
C hereto, as an amendment and restatement of its existing agreement
with the ICMA Retirement Corporation, and directs the ICMA Retirement
Corporation, as Trustee, to invest all funds held under the deferred
compensation plan through the ICMA Retirement Trust as soon as is
practicable; and
BE IT FURTHER RESOLVED that the City Manager shall be the coordi-
nator for this program and shall receive necessary reports, notices,
etc. from the ICMA Retirement Corporation as Administrator, and shall
cast, on behalf of the City, any required votes under the program.
Administrative duties to carry our the plan may be assigned to the
appropriate departments.
DONE AND RESOLVED THI S 023 rd... DAY OF
Ou.r¡ Jd
, 1988
CITY OF CLERMONT
¿:t2~
Attest:
~~£ì~
~~ E. ~~z~e, City Clerk
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APPENDIX B
DECLARATION OF TRUST
of
ICMA RETIREMENT TRUST
ARTICLE I. Name and Definitions
SECTION 1.1. Name. The Name of the Trust created hereby is the
ICMA Retirement Trust.
SECTION 1.2, Definitions. Wherever they are used herein, the
following terms shall have the following respective meanings:
(a) By-Laws, The By-Laws referred to in Section 4,1 hereof, as
amended from time to time.
(b) Deferred Compensation Plan. A deferred compensation plan
established and maintained by a Public Employer for the purpose
of providing retirement income and other deferred benefits to its
employees in accordance with the provisions of section 457 of
the Internal Revenue Code of 1954, as amended,
(c) Guaranteed Investment Contract. A contracJ entered into by
the Retirement Trust with insurance companies that provides for
a guaranteed rate of return on investments made pursuant to
such contract.
(d) ICMA. The International City Management Association.
(e) ICMA/RC Trustees. Those Trustees elected by the Public
Employers who, in accordance with the provisions of Section
3.1(a) hereof, are also members of the Board of Directors of ICMA
or RC.
(f) Investment Adviser. The Investment Adviser that enters into a
contract with the Retirement Trust to provide advice with respect
to investment of the Trust Property.
(g) Employer Trust. A trust created pursuant to an agreement
between RC and a Public Employer for the purpose of investing
and administering the funds set aside by such employer in
connection with its deferred compensation agreements with its
employees.
(h) Portfolios. The Portfolios of investments established by the
Investment Adviser to the Retirement Trust, under the
supervision of the Trustees, for the purpose of providing
investments for the Trust Property,
(i) Public Employee Trustees. Those Trustees elected by the
Public Employers who, in accordance with the provisions of
Section 3.1 (a) hereof, are full-time employees of Public
Employers,
(j) Public Employer. A unit of state or local government, or any
agency or instrumentality thereof, that has adopted a Deferred
Compensation Plan and has executed this Declaration of Trust.
(k) RC. The International City Management Association
Retirement Corporation.
(I) Retirement Trust. The Trust created by this Declaration of
, Trust.
(m) Trust Property. The amounts held in the Retirement Trust on
behalf of the Public Employers, The Trust Property shall include
any income resulting from thè investment of the amounts so held.
(n) Trustees, The Public Employee Trustees and ICMA/RC
Trustees elected by the Public Employers to serve as members of
the Board of Trustees of the Retirement Trust.
ARTICLE II. Creation and Purpose of the Trust; Ownership of Trust
Property
SECTION 2.1. Creation, The Retirement Trust is created and
established by the execution of this Declaration of Trust by the Trustees
and the participating Public Employers.
SECTION 2,2, Purpose. The purpose of the Retirement Trust is to
provide for the commingled ,investment of funds held by the Public
Employers in connection with their Deferred Compensation Plans. The
Trust Property shall be invested in the Portfolios, in Guaranteed
Investment Contracts and in other investments recommended by the
Investment Adviser under the supervision of the Board of Trustees.
SECTION 2,3 Ownership of Trust Property, The Trustees shall have
legal title to the Trust Property. The Public Employers shall be the
beneficial owners of the Trust Property.
ARTICLE III. Trustees
SECTION 3,1. Number and Qualification of Trustees,
(a) The Board of Trustees shall consist of nine Trustees, Five of
the Trustees shall be full-time employees of a Public Employer
(the Public Employee Trustees) who are authorized by such
Public Employer to serve as Trustee. The remaining four Trustees
shall consist of two persons who, at the time of election to the
Board of Trustee's, are members of the Board of Directors of
ICMA and two persons who, at the time of election, are members
of the Board of Directors of RC (the ICMA/RC Trustees), One of
the Trustees who is a director of ICMA, and one of the Trustees
who is a director of RC, shall, at the time of election, be full-time
employees of a Public Employer,
(b) No person may serve as a Trustee for more than one term in
any ten-year period,
SECTION 3,2, Election and Term.
(a) Except for the Trustees appointed to fill vacancies pursuant
to Section 3.5 hereof, the Trustees shall be elected by a vote of a
majority of the Public Employers in accordance with the
procedures set forth in the BYeLaws.
(b) At the first election of Trustees, three Trustees shall be
elected for a term of three years, three Trustees shall be elected
for a term of two years and three Trustees shall be elected for a
term of one year. At each subsequent election, three Trustees
shall be elected for a term of three years and until his or her
successor is elected and qualified.
SECTION 3.3. Nominations, The Trustees who are full-time
employees of Public 'Employers shall serve as the Nominating
Committee for the Public Employee Trustees. The Nominating
Committee shall choose candidates for Public Employee Trustees in
accordance with the procedures set forth in the By-Laws.
SECTION 3.4. Resignation and Removal.
(a) Any Trustee may resign as Trustee (without need for prior or
subsequent accounting) by an instrument in writing signed by the
Trustee and delivered to the other Trustees and such resignation
shall be effective upon such delivery, or at" a later date according
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of the instrument. An. the Trustees may be
cause. by a vote of a majority of the Public
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to the terms
removed for
Employers.
(b) Each Public Employee Trustee shall resign his or her position
as Trustee within sixty days of the date on which he or she ceases
to be a full-time employee of a Public Employer.
SECTION 3,5. Vacancie.s, The term of office of a Trustee shall
terminate and a vacancy shall occur in the event of the death,
resignation, removal, adjudicated incompetence or other incapacity to
perform the duties of the office of a Trustee. In the case of a vacancy, the
remaining Trustees shall appoint such person as they in their discretion
shall see fit (subject to the limitations set forth in this Section), to serve
forthe unexpired portion of the term of the Trustee who has resigned or
otherwise ceased to be a Trustee. The appõintment shall be made by a
written instrument signed by a majority of the Trustees. The person
appointed must be the same type of Trustee (i.e., Public Employee
Trustee or iCMA/RC Trustee) as the person who has ceased to be a
Trustee. An appointment of a Trustee may be made in anticipation of a
vacancy to occur at a later date by reason of retirement or resignation,
provided that such appointment shall not become effective prior to such
retirement or resignation. Whenever a vacancy in the number of
Trustees shall occur, until such vacancy is filled as provided in this
Section 3.5, the Trustees in office, regardless of their number, shall have
all the powers granted to the Trustees and shall discharge all the duties
imposed upon the Trustees by this Declaration. A written instrument
certifying the existence of such vacancy signed by a majority of the
'Trustees shall be conclusive evidence of the existence 01 such vacancy.
SECTION 3,6, Trustees Serve in Representative Capacity. By
executing this Declaration, each Public Employer agrees that the Public
Employee Trustees elected by the Public Employers are authorized to
act as agents and representatives of the Public Employers collectively.
ARTICLE IV. Powers of Trustees
SECTiON 4.1. General Powers. The Trustees shall have the power to
conduct the business of the Trust and to carryon its operations, Such
power shall include, but shall not be limited to, the power to:
(a) receive the Trust Property from the Public Employers or from
a Trustee of any Employer Trust;
(b) enter into a contract with an Investment Adviser providing,
among other things, for the establishment and operation of the
Portfolios, selection of the Guaranteed Investment Contracts in
which the Trust Property may be invested, selection of other
investments for the Trust Property and the payment of reasonable
fees to the Investment Adviser and to any sub-investment adviser
retained by the Investment Adviser;
(c) review annually the performance of the Investment Adviser
and approve annually the contract with such InvestmentAdviser;
(d) invest and reinvest the Trust Property in the Portfolios, the
Guaranteed Investment Contracts and in any other investment
recommended by the Investment Adviser, provided that if a
Public Employer has directed that its monies be invested in
specified Portfolios or in a Guaranteed Investment Contract, the
Trustees of the Retirement Trust shall invest such monies in
accordance with such directions;
(e) keep such portion of the Trust Property in cash or cash
balances as the Trustees, from time to time, may deem to be in the
best interest of the Retirement Trust created hereby, without
liability for interest thereon;
(f) accept and retain for such time as they may deem advisable
any securities or other property received or acquired by them as
Trustees hereunder, whether or not such securities or other
property would normally be purchased as investments here-
under;
(g) cause any securities or other property held as part of .the
Trust Property to be registered in the name of the Retirement
Trust or in the name of a nominee, and to hold any investments in
bearer form, but the books and records of the Trustees shall at all
times ShOW. all such investments are a part of the \rust
Property;
(h) make, execute, acknowledge. and deliver any and all
documents of transfer and conveyance and any and all other
instruments that may be necessary or appropriate to carry out the
powers herein granted;
(i) vote upon any stock, bonds, or other securities; give general
or special proxies or powers of attorney with or without power of
substitution; exercise any conversion privileges, subscription
rights, or other options, and make any payments incidental
thereto; oppose, or consent to, or otherwise participate in,
corporate reorganizations or other changes affecting corporate
securities, and delegate discretionary powers. and pay any
assessments or charges in connection therewith; and generally
exercise any of the powers of an owner with respect to stocks,
bonds, securities or other property ·held as part of the Trust
Property;
(j) enter into contracts or arrangements for goods or services
required in connection with the operation of the Retirement
Trust, including, but not limited to, contracts with custodians and
contracts for the provision of administrative services;
(k) borrow or raise money for the purpose of the Retirement
Trust in such amount, and upon such terms and conditions. as the
Trustees shall deem advisable, provided that the aggregate
amount of such borrowings shall not exceed 30% of the vaiue of
the Trust Property. No person lending money to the Trustees
shall be bound to see the application of the money lent or to
inquire into its validity, expediency or propriety of any such
borrowing;
(i) incur reasonable expenses as required lor the operation of the
Retirement Trust and deduct such expenses from the Trust
Property;
(m) pay expenses properly allocable to the Trust Property
incurred in connection with the Deferred Compensation Plans or
the Employer Trusts and deduct such expenses from that portion
of the Trust Property beneficially owned by the Public Employer
to whom such expenses are properly allocable;
(n) payout of the Trust Property all real and personal property
taxes, income taxes and other taxes of any and all kinds which, in
the opinion 01 the Trustees, are properly levied, or assessed
under existing or future laws upon, or in respect of, the Trust
Property and allocate any such taxes to the appropriate accounts;
(0) adopt, amend and repeal the By-Laws, provided that such By-
Laws are at all times consistent with the terms of this Declaration
of Trust;
(p) employ persons to make available interests in the Retirement
Trust to employers eligible to maintain a deferred compensation
plan under section 457 01 the Internal Revenue Code, as
amended;
(q) issue the Annual Report of the Retirement Trust, and the
disclosure documents and other literature used by the
Retirement Trust;
(r) make loans, including the purchase of debt obligations,
provided that all such loans shall bear interest at the current
market rate;
(s) contract for, and delegate any powers granted hereunder to.
such officers, agents, employees, auditors and attorneys as the
Trustees may select, provided that the Trustees may not delegate
the powers set forth in paragraphs (b). (c) and (0) of this Section
4.1 and may not delegate any powers il such delegation would
violate their fiduciary duties;
(t) provide for the indemnification of the officers and Trustees of
the Retirement Trust and purchase fiduciary insurance;
(u) maintain books and records, including separate accounts for
each Public Employer or Employer Trust and such additional
separate accounts as are required under, and consistent with, the
Deferred Compensation Plan of each Public Employer; and
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.' ¡v) do all such acts, take all such ~eding~" and exerci.se all
such nghts and privileges, although not specifically mentlo~ed
herem, as the Trustees may deem necessary or appropnate to
administer the Trust Property and to carry out the purposes of the
Retirement Trust.
SECTION 4.2 Distribution of Trust Property. Distributions of the
Trust Property shall be made to, or on behalf of, the Public Employer, in
accordance with the terms of the Deferred Compensation Plans or
Employer Trusts. The Trustees of the Retirement Trust shall be fully
protected in making payments in accordance with the directions of the
Public Employers or the Trustees of the Employer Trusts without
ascertaining whether such payments are in compliance with the
provIsions of the Deferred Compensation Plans or the agreements
creating thl? Employer Trusts.
SECTION 43 Execution of Instruments. The Trustees may
unanimously designate anyone or more of the Trustees to execute any
Instrument or document o'n behalf of all, including but not limited tothe
Signing or endorsement of any check and the signing of any
applications, insurance and other contracts, and the action of such
designated Trustee or Trustees shall have the same force and effect as if
!a'.e·n by all the Trustees.
ARTICLE V, Duty of Care and Liability of Trustees
SECT ION 5.1.' Duty of Care. In exercising the powers hereinbefore
granted to the Trustees, the Trustees shall perform all acts within their
authority for the exclusive purpose of providing benefits for the Public
Emrloyers, and shall·perform such acts with the care, skill, prudence
aFld diligence in the circumstances then prevailing that a prudent person
actmg in a like capacity and familiar with such matters would use in the
conduct of an enterprise of a like character and with like aims.
SECTION 5.2. Liability, The Trustees shall not be liable for any
. mistake of judgment or other action taken in good faith, and for any
action taken or omitted in reliance in good faith upon the books of
account or other records of the Retirement Trust, upon the opinion of
counsel, or upon reports made to the Retirement Trust by any of its
officers, employees or agents or by the Investment Adviser or any sub-
Investment adviser, accountants, appraisers or other experts or
consultants selected with reasonable care by the Trustees,' officers or
employees of the Retirement Trust. The Trustees shall also not be liable
for any loss sustained by the Trust Property by reason of any investment
made in good faith and in accordance with the standard of care set forth
In Sectlpn 5.1.
SECTION 5,3, e, No Trustee shall be obligated to give any bond
?r other security for the performance of any of his or her duties
hêréûnder,
ARTICLE VI, Annual Report to Shareholders
The Trustees shall annually submit to the Public Employers a written
report of the transactions of the Retirement Trust, including financial
statements which shall·be certified by independent public accountants
chosen by the Trustees,
ARTICLE VII. Duration or Amendment of Retirement Trust
SECTION 7.1, Withdrawal. A Public Employer may, at any time, with-
draw from this Retirement Trust by delivering to the Board of Trustees a
statement to that effect. The withdrawing Public Employer's beneficial
interest in the Retirement Trust shall be paid out to the Public Employer
or to the Trustee of the Employer Trust, as appropriate,
SECTION 7,2. Duration. The Retirement Trust shall continue until
terminated by the vote of a majority of the Public Employers, each
casting one vote. Upon termination, all of the Trust Property shall be
paid out to the Publ ic Employers or the Trustees of the Employer Trusts,
as appropriate,
SECTION 7.3. Amendment. The Retirement Trust may be amended
by the vote of a majority of the Public Employers, each casting one vote.
SECTION 7.4. Procedure. A resolution to terminate or amend the
Retirement Trust or to remove a Trustee shall be submitted to a vote of
the Public Employers if: (a) a majority of the Trustees so direct, or (b) a
petition requesting a vote, signed by not less than 25% of the Public
Employers, is submitted to the Trustees,
ARTICLE VIII. Miscellaneous
SECTION 8.1. Governing Law. Except as otherwise required by state
or local law, this Declaration of Trust and the Retirement Trust hereby
created shall be construed and regulated by the laws of the District of
Columbia. .
SECTION 8.2. Counterparts. This Declaration may be executed by
the Public Employers and Trustees in two or more counterparts, each of
which shall be deemed an original but all of which together shall
constitute one and the same instrument.
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APPENDIX C
TRUST AGREEMENT WITH
THE ICMA RETIREMENT CORPORATION
AGREEME~T made by and between the Employer named in the
attached resolution and the International Crty Management Association
Retirement Corporation (hereinafter the "Trustee" or "Retirement
Corporation"), a nonprofit corporation organized and existing under the
laws of the State of Delaware, for the purpose of investing and otherwise
administering the funds set aside by Employers in connection with
deferred compensation plans established under section 457 of the
Internal Revenue Code of 1954 (the "Code'} This Agreement shall take
effect upon acceptance by the Trustee of its apPOintment by the
Employer to serve as Trustee in accordance herewith as set forth in the
attached resolution.
WHEREAS, the Employer has established a deferred compensation plan
under section 457 of the Code (the "Plan");
WHEREAS, in order that there will be sufficient funds àvailable to
discharge the Employer's contractual obligations under the Plan, the'
Employer desires to set aside periodically amounts equal to the amount
of compensation deferred;
WHEREAS, the funds set aside, together with any and all assets derived
trom the investment thereof, are to be exclusively within the dominion,
control. and ownership of the Employer, and subject to the Employer's
absolute right of withdrawal, no employees having any interest
whatsoever therein; .
NOW, THEREFORE, this Agreement witnesseth that (a) the Employer
will pay monies to the Trustee to be placed in deferred compensation
accounts for the Employer; (b) the Trustee covenants that it will hold
said sums, and any other funds which it may receive hereunder, in trust
for the uses and purposes and upon the terms and conditions
hereinafter stated, and Ic) the parties hereto agree as follows:
ARTICLE I. General Duties of the Parties.
Section 1.1, General Duty of the Employer. The Employer shall make
regular periodic payments equal to the amounts of its employees'
compensation which are deferred in accordance with the terms and
conditions of the Plan to the extent that such amounts are to be invested
under the Trust.
Section 1,2. General Duties of the Trustee. The Trustee shall hold all
funds received by it hereunder, which, together with the income
therefrom, shall constitute the. Trust Funds. 1\ shall administer the Trust
Funds, collect the income thereof, and make payments therefrom, all as
hereinafter provided. The Trustee shall also hold all Trust Funds which
are transferred to it as successor Trustee by the Employer from existing
deferred compensation arrangements with its Employees under plans
described in section 457 of the Code. Such Trust Funds shall be subject
to all of the terms and provisions of this Agreement.
ARTICLE U. Powe", and Duties of the Trustee In Investment,
Administration. and Disbursement of the Trult Fundi,
Section 2.1. Investment Powers and Duties of the Trustee. The
Trustee shall have the power to invest and reinvest the principal and
income of the Trust Funds and keep the Trust Funds invested, without
distinction between principal and income, in securities or in other
property, real or personal; wherever situated, including, but not limited
to, stocks, common or preferred, bonds, retirement annuity and
insurance policies. mortgages, and other evidences of indebtedness or
ownership, investment companies, common or group trust funds, or
separate and difterent types of fundS (including equity, fixed Income)
which fulfill requirements of state and local governmentill laws,
provided, however. that the Employer may direct investment by the
Trustee among available investment alternatives in such proportions as
the Employer authorizes in connection with its deferred compensation
agreements with its employees. For these purposes. these Trust Funds
may be commingled with Trust Funds set aside by other Employers
pursuant to the terms of the ICMA Retirement Trust. Investment powers
vested in the Trustee by the Section may be delegated by the Trustee to
any bank, insurance or trust company. or any investment advisor,
manager or agent selected by it.
section 2.2, Administrative Powers ot the Trustee. The Trustee shall
have the power in its discretion:
(a) To purchase, or subscribe for, any securities or other
property and to retain the same in trust.
(b) To sell, exchange. convey, transfer or otherwise dispose of
any securities or other property held by it, by private contract, or
at public auction. No person dealing with the Trustee shall be
bound to see the application of the purChase money or to inquire
into the validity, expediency, or propriety of any such sale or
other disposition,
(c) To vote upon any stocks, bonds, or other securities: to give
general or special proxies or powers of attorney with or without
power of substitution; to exercise any conversion privileges,
subscription rights. or other options, and to make any payments
incidental thereto; to oppose, or to consent to, or otherwise
participate in, corporate reorganizati'ons or other char¡ges
affecting corporate securities, and to delegate discretionary
powers, and to pay any assessments or charges in connection
therewith; and generally to exercise any of the powers of an
owner with respect to stocks, bonds, securities or other property
held as part of the Trust Funds.
(d) To cause any securities or other property held as part of the
Trust Funds to be registered in its own name, and to hOld any
investments in bearer form. but the books and records of the
Trustee shall at all times show that all such investments are a part
of the Trust Funds.
(e) To borrow or raise money for the purpose of the Trust in such
amount, and upon such terms and conditions, as the Trustee shall
deem advisable; and, for any sum so borrowed, to issue its
promissory note as Trustee, and to secure the repayment thereof
by pledging all, or any part, of the Trust Funds No person lending
money to the Trustee shall be bound to see the application of the
money lent or to inquire into its validity, expediency or propriety
of any such borrowing.
(f) To keep such portion of the Trust Funds in cash or cash
balances as the Trustee, from time to time, may deem to be in the
best interest of the Trust created hereby. without liability for
interest thereon.
(g) To accept and retain for such time as it may deem advisable
any securities or other property received or acqUired by it as
Trustee hereunder, whether or not such securities or other
property would normally be purchased as investment hereunder.
(h) To make, execute, aCknowledge, and deliver any and all
documents of transfer and conveyance and any and all other
instruments thai may be necessary or appropriate to carry out the
powers herein granted.
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(i) To settle, compromise, or submit to arbitration any claims,
debts. or damages due or owing to or from the Trust Funds; to
commence or defend suits or legal or administrative proceedings;
and to represent the Trust Funds in all SUIts and legal and
administrative proceedings.
Ij) To do all such acts. take all such proceedings, and exercise all
such rights and privileges, although not specifically mentioned
herein. as the Trustee may deem necessary to administer the
Trust Funds and to carry out the purposes of this Trust.
Section 2.3. Distributions from lhe Trust Funds. The Employer
hereby appoints the Trustee as its agenl for the purpose of making
distributions from the Trust Funds. In this regard the terms and
conditions set forth in the Plan are to guide and control the Trustee's
power.
Section 2,4. Valuation of Trust Funds, At least once a year as of
Valuation Dates designated by the Trustee, the Trustee shall determine
the value of the Trust Funds. Assets of the Trust Funds shall be valued at
their market values at Ihe close of business on the Valuation Date, or, in
the absence of readily ascertainable market values as the Trustee shall
delermine. in accordance with methods consistently followed and
uniformly applied.
ARTICLE III. For Protection of Trustee.
Section 3.1, Evidence of Action by Employer. The Trustee may rely
upon any certificate, notice or direction purporting 10 have been signed
on behalf of the Employer which the Trustee believes to have been
signed by a duly designated official of the Employer. No communication
shall be binding upon any of the Trust Funds or Trustee until they are
received by the Trustee.
Section 3.2. Advice of Counsel. The Trustee may consult with any
legal counsel with respect to the construction of this Agreement. its
duties hereunder, or any act. which it proposes to take or omit. and shall
not be liable for any action taken or omitted in good faith pursuant to
such advice. '
Section 3.3. Miscellaneous. The Trustee shall use ordinary care and
reasonable diligence. but shall not be liable for any mistake of judgment
or other action taken in good faith. The Trustee shall not be liable for any
loss sustained by the Trust Funds by redsons of any investment made in
good faith and in accordance with the provisions of this Agreement.
The Trustee's duties and obligations shall be limited to those
expressly imposed upon it by this Agr~ment.
ARTICLE IV. Tues, Expenses and Compensation of Tru.tee.
Section 4.1. Taxes. The Trustee shall deduct from and charge against
the Trust Funds any taxes on the Trust Funds or the income thereof or
which the Trustee is required to pay with respect to the interest of any
person therein.
Section 4,2. Expenses. The- Trustee shall deduct from and charge
against the Trust Funds all reasonable expenses incurred by the Trustee
in the administration of the Trust Funds. including counsel, agency,
investment advisory, and other necessary fees,
ARTICLE Y. SeU'ementof Accounts. The Trustee shall keep accurate
'and detailed accounts of all investments, receipts, disbursements. and
other transactions hereunder.
Within ninety (90) days after the close of each fiscal year, the Trustee
shall render in duplicate to the Employer an account (If its acts and
transactions as Trustee hereunder. If any part of the Trust Fund shall be
invested through the medium of any common, collective or commingled
Trust Funds. the last annual report of such Trust Funds shall be
submitted with and incorporated in the account.
If within ninety (90) days after the mailing of ·the account or any
amended account the Employer has not filed with the Trustee notice of.
any objection to any act or transaction of the Trustee. the account or
amended account shall become an account stated. If any objection has
been filed, and if the Employer is satisfied that it should be withdrawn or
if the account is adjusted to the Employer's satisfaction, the Employer
shall in writing filed with the Trustee signify approval of the account and
it shall become an account stated. .
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When an account becomes an account stated, such account shall be
finally settled, and the Trustee shall be completely discharged and
released, as if such account had been settled and allowed by a judgment
or'decree of a court of competent jurisdiction In an action or proceeding
in which the Trustee and the Employer were parties.
The Trustee shall have the right to apply at any time to a court 01
competenl jurisdiction for the judicial settlement of its account.
AATlCLE VI. Ae.lgnatlon and Aemoval 01 Tru.t...
Section 61, Resignation of Trustee. The Trustee may resign at any
time by filing with the Employer its written resignation Such resignation
shall take effect sixty (60) days from the date of such filing and upon
appointment of a successor pursuant to Section 6,3,. whichever shall
first occur.
Section 6.2. Removal of Trustee, The Employer may remove the
Trustee at any time by delivering to the Trustee a written notice of its
removal and an appointment of a successor pursuant to Section 6.3,
Such removal shall not take eflect prior to sixty (60) days from such
delivery unless the Trustee agrees to an earlier effective date.
Section 6,3. Appointment of Successor Trustee. The appointment 01
a successor to the Trustee shall take effect upon the delivery to the
Trustee of (a) an instrument in writing executed by the Employer
appointing such successor, and exonerating such successor from
liability for the acts and omissions of its predecessor, and (b) an
acceptance in writing, executed by such successor.
All of the provisions set forth herein with respect to the Trustee shall
relate to each successor with the same force and effect as if such
successor had been originally named as Trustee hereunder.
If a successor is not appointed with sixty (60) days after the Trustee
gives notice of its resignation pursuant to Section 6.1.. the Trustee may
apply to any court of competent jurisdiction for appointment of a
successor.
Section 6.4. Transfer of Funds to Successor. Upon the resignation or
removal of the Trustee and appointment of a successor. and after the
final account of the Trustee has been properly settled, the Trustee shall
transfer and deliver any of the Trust Funds involved to such successor.
ARTICLE VII. Duration and Aevocalion of Trult Allreemenl
Section 7.1. Duration and Revocation, This Trust shall continue for,
such time as may be necessary to accomplish the purpose for which it
was created but may be terminated or revoked at any time by the
Employer as it relates te any and/or all related participating Employees.
Written notice of such termination or revocation shall be given to the
Trustee by the Employer. Upon termination or revocation of the Trust.
all of the assets thereof shall return to and revert to the Employer.
Termination of this Trust shall not, however, relieve the Employer of the
Employer's continuing obligation to pay deferred compensation to
Employees in accordance with the terms of the. Plan.
Section 7.2. Amendment. The Employer shall have the right to amend
this Agreement in whol~ and in part but only with the Trustee's written
consent Any such amendment shall become effective upon (a) delivery
to the Trustee of a written instrument of amendment. and Ib) the
endorsement by the Trustee on suCh instrument of its consent thereto.
ARTICLE VIII. MI.ceflaneo~.
Section 8,1, laws of the District of Columbia to Govern. This
Agreement and the Trust hereby created shall be construed and
regulated by the laws of the District of Columbia.
Section 8.2. Successor Employers. The,"Employer'" shall include any
person who succeeds the Employer and w'ho thereby becomes subject
to the obligations of the Employer under the Plan.
Section 8.3. Withdrawals, The Employer may. at any time. and from
time to time, withdraw a portion or all of Trust Funds created by this
Agreement.
Section 8.4. Gender and Number. The masculine includes the
feminine S/'Id the singular includes the plural unless the context requires
another meaning.
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