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Charitable Remainder Annuity Trust Agreement

(Measured by Grantor's Life Annuity Amount Expressed as Fixed Sum)

CHARITABLE REMAINDER ANNUITY TRUST AGREEMENT made [date] by and between [name], residing at [address] (the Grantor) and [name of charitable organization], an educational corporation incorporated under the laws of the State of ........, located at [address] (the Trustee).

1. Delivery of Gift and Acknowledgment by Trustee. The Grantor hereby transfers and delivers to the Trustee the property described in Schedule A annexed hereto [omitted] and made a part hereof, having a total fair market value of ........ dollars ($....). The Trustee acknowledges receipt of the same as an irrevocable gift from the Grantor. The property and all receipts therefrom shall be managed and invested by the Trustee as a single fund (the Annuity Trust) upon the terms and conditions hereinafter set forth.

2. Designation of Gift. This gift shall be designated in the Trustee's records as the [name of donor] Annuity Trust Fund.

3. No Additional Contributions. No additional contributions shall be made to the Trust.

4. Payments to Beneficiary. During the Grantor's lifetime the Trustee shall pay to the Grantor in each taxable year of the trust an annuity amount of ........ dollars ($....). The annuity amount shall be paid in semiannual installments [or more frequent periodic payments] of ........ dollars ($....) on the last day of June and December of each year. The payments shall be made from the trust's income and, to the extent that the income is insufficient, from the trust's principal. Any income of the Trust for a taxable year that is in excess of the annuity amount shall be added to the trust's principal. The annuity amount shall be decreased as provided in Paragraph 5 when the taxable year of the Trust is a short year or is the year in which the Grantor dies.

The first installment is to be paid on the last day of ........, 20..... The obligation of the Trustee to make payments to the Grantor hereunder shall end with the semi-annual installment [or such other period that has been chosen for payments] due immediately before the Grantor's death. Despite any state laws presently in force or hereafter enacted, no amount other than the annuity amount, may be paid to or for the use of any person other than organizations described in Sections 170(b)(1)(A), 170(c), 2055(a), and 2522(a) of the Internal Revenue Code of 1986 or of any corresponding sections of any federal internal revenue code hereinafter enacted. However, an amount transferred or paid to any person or organization not described by these sections of the Internal Revenue Code of 1986 shall not come within the provision of this Paragraph 4 if the transfer or payment is made for full and adequate consideration.

5. Proration for Short Taxable Year. The first taxable year of the Trust begins with the date of this Agreement and ends on December 31, 20..... Subsequent taxable years shall begin on January 1 and end on December 31. In the case of a taxable year which consists of fewer than twelve months (other than the year in which the Grantor dies), the annuity amount which must be distributed to the Grantor shall be the annuity amount defined in Paragraph 4 hereof multiplied by a fraction of which the numerator is the number of days in the short taxable year of the Trust and the denominator is 365 [366 if February 29 is a day included in the numerator]. In the case of the taxable year in which the Grantor dies, the annuity amount that must be distributed shall be the annuity amount defined in Paragraph 4 hereof multiplied by a fraction of which the numerator is the number of days in the period beginning with the first day of such taxable year and ending with the date of the Grantor's death and the denominator is 365 [366 if February 29 is a day included in the numerator]. Notwithstanding the foregoing, the Trustee's obligation to pay the annuity amount shall end with the regular semi-annual installment [or such other period that has been chosen for payments] due immediately before the Grantor's death as provided in Paragraph 4 hereof.

6. Distribution Upon Grantor's Death. Upon the Grantor' death, the Trust's assets, including all principal and income other than any amount distributable to the Grantor, shall be irrevocably distributed to [name of charitable organization] to be used in such manner as the Trustee shall direct.

7. Required Charitable Use. If [name of charitable organization] is not an organization described in Sections 170(b)(1)(A), 170(c), 2055(a) and 2522(a) of the Internal Revenue Code of 1986 or of any corresponding sections of any federal internal revenue code hereinafter enacted at the time when the principal and/or income of the Trust is to be distributed to it, the Trustee shall distribute such amounts to one or more organizations which are described by such Sections of the Internal Revenue Code as the Trustee in its sole discretion shall select and in such amounts as the Trustee in its sole discretion shall determine.

8. Trustee's Powers. The trustee shall have all the powers conferred upon it by law. In addition the Trustee is authorized to retain the assets that are described in Exhibit A or to sell the assets and reinvest the proceeds in any manner that is consistent with the provisions of Section 664 of the Internal Revenue Code of 1986 and the regulations thereunder or of any corresponding section of any federal internal revenue code hereinafter enacted and the regulations thereunder. Notwithstanding the grant of this authority, the Trustee shall not engage in any activity nor receive or invest in any asset that shall cause the Trust to have unrelated income within the meaning of Sections 511 and 512 of the Internal Revenue Code of 1986 or of any corresponding sections of any federal internal revenue code hereinafter enacted. No provision of this trust agreement shall be construed as restricting the Trustee from investing the Trust's assets in a manner that could result in the annual realization of a reasonable amount of income or gain from the sale or disposition of the Trust's assets.

9. Trustee's Compensation; Trustee's Bond. The Trustee shall not receive any compensation for services rendered under this Agreement. The Trustee shall not be required to post any bond or other security for the faithful performance of its duties hereunder in any jurisdiction.

10. Prohibited Activities. It is the Grantor's intention that he and his estate by this Agreement receive the full benefit of any income, gift, and estate tax charitable contribution to which he or his estate may be entitled and for the Trust created hereby to qualify as a charitable remainder annuity trust under Section 664 of the Internal Revenue Code of 1986 and the regulations thereunder or of any corresponding section of any federal internal revenue code hereinafter enacted and under the regulations thereunder. The provisions of this agreement shall be interpreted and the Trust shall be administered and valued accordingly. Notwithstanding any other provision hereof, the Trustee shall not (a) engage in any acts of self-dealing as defined in Section 4941(d) of the Internal Revenue Code of 1986 or of any corresponding section of any federal internal revenue code hereinafter enacted; (b) retain any excess business holdings as defined in Section 4943(c) of the Internal Revenue Code of 1986 which would subject the Trust to tax under Section 4943 of the Internal Revenue Code of 1986 or of any corresponding section of any federal internal revenue core hereinafter enacted; (c) make any investment that would jeopardize the Trust's charitable purposes or subject the Trust to tax under Section 4944 of the Internal Revenue Code of 1986 or of any corresponding section of any federal internal revenue code hereinafter enacted; or (d) make any taxable expenditures as defined in Section 4945(d) of the Internal Revenue Code of 1986 or of any corresponding section of any federal internal revenue code hereinafter enclosed. Further, as a precaution against the possibility that Section 4942 of the Internal Revenue Code of 1986 may at some time be deemed applicable to this Trust by reason of Section 508(e) of the Internal Revenue Code of 1986, the Trustee shall make distributions of income in each taxable year at such time and in such manner as not to subject the Trust to tax under Section 4942 of the Internal Revenue Code of 1986 or of any corresponding section of any federal internal revenue code hereinafter enacted.

11. Estate and Death Taxes. No estate or death taxes shall be allocated to or recoverable from the Trust and the Grantor will not make any direction to the contrary in his Will.

12. Trustee's Power to Amend Agreement. The Trustee, acting alone, shall have the power to amend this Agreement for the sole purpose of insuring that this Agreement qualifies as a charitable remainder annuity trust in accordance with the requirements of Section 664 of the Internal Revenue Code of 1986 and the regulations thereunder or of any corresponding section of any federal internal revenue code hereinafter enacted and the regulations thereunder.

13. Governing Law. This Agreement is made in accordance with the laws of the State of ........ and is to be interpreted accordingly. However, should such laws conflict in any way with the provision of Section 664 of the Internal Revenue Code of 1986 and the regulations thereunder or of any corresponding section of any federal internal revenue code hereinafter enacted and the regulations thereunder regarding the qualification of the Trust as a charitable remainder annuity trust and the Grantor's ability to obtain for himself or his estate the full benefit of any income, gift, or estate charitable deduction to which he or his estate may be entitled, then Section 664 of the Internal Revenue Code of 1986 or any corresponding section of any federal internal revenue code hereinafter enacted and the regulations thereunder shall govern.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written.

[signature]

Donor

[name of institution]

By: [signature]

[title]

Trustee

[Acknowledgments]

*** If Required By FederaL or State Law ***

This Section for Notary:

ACKNOWLEDGMENT

State of _________

County of ________ [COUNTY]

On [DATE] before me, [NAME OF NOTARY], notary, personally appeared [NAME OF PERSON(S) INVOLVED], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

Witness my hand and official seal.

Signature ________
Notary

My commission expires: _____

(Seal)