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Charitable Remainder Unitrust Agreement

(Measured by Grantor's Life; Direction to Pay Fixed Percentage of Asset to Grantor or Annual Income Whichever is Less; No Direction to Make up Underpayment of Unitrust Amount)

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

1. Delivery of Gift and Acknowledgement by Trustee. The Grantor hereby transfers and delivers to the Trustee the property described in Schedule A [omitted] annexed hereto and made a part hereof. The Trustee acknowledges receipt of the same as an irrevocable gift from the Grantor. The property and all receipts therefrom and all additions thereto of every kind shall be managed and invested by the Trustee as a single fund (the Unitrust) 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] Unitrust Fund.

3. Additional Contributions. The Grantor or any other person or entity may make additional contributions to the Trust of property of any kind that is acceptable to the Trustee by deed, gift, or will.

4. Payments to Beneficiary. During the Grantor's lifetime, the Trustee shall pay to the Grantor in each taxable year of the trust a unitrust amount equal to the lesser of (a) the trust income for such taxable year and (b) ........ percent [number: not less that 5%] (....%) of the net fair market value of the trust's assets valued as of the first day of each taxable year of the trust. Any income of the trust for a taxable year that is in excess of the unitrust amount shall be added to the trust's principal. In determining the annual net fair market value of the trust's assets, the value shall be prorated in accordance with Paragraph 5 hereof when the taxable year is a short year or is the year in which the Grantor dies or in accordance with Paragraph 6 hereof when there have been additional contributions to the trust's assets in the taxable year. The annual unitrust amount shall be paid to the Grantor in equal quarterly installments [or more frequent or less frequent periodic payments] on the last day of March, June, September, and December [or any other months consistent with the number of installments in which the unitrust amount is paid]. 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 quarterly 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 unitrust 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 provisions 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 unitrust begins on ........, 20.... and shall end 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 12 months (other than the year in which the Grantor dies), the unitrust amount which must be distributed to the Grantor shall be the unitrust 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 unitrust 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 unitrust amount shall end with the regular quarterly 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. Proration for Additional Contributions. If any additional contributions are made to the Trust in accordance with the provisions of Paragraph 3 hereof after the initial contribution by the Grantor, the unitrust amount for the taxable year in which the assets are added to the Trust shall be the percentage defined in Paragraph 5 of the sum of (a) the net fair market value of the trust assets (excluding the assets so added and any income from, or appreciation on, such assets) and (b) that proportion of the assets so added that was excluded under (a), which the number of days in the period that begins with the date of the contribution and ends with the earlier of the last day of the taxable year or the date of the Grantor's death bears to the number of days in the period that begins with the first day of such taxable year and ends with the earlier of the last day of such taxable year or the date of the Grantor's death. The assets so added shall be valued as of the date on which they are contributed.

An additional contribution to the Trust made by Will shall be deemed to have been made on the date of the death of the person under whose Will the contribution was made and the Trustee's obligation to pay the Grantor the unitrust amount with respect thereof shall commence on that date even though the additional contribution has not been completely funded. However, payment of such unitrust amount may be deferred from the date of the decedent's death to the end of the Trust's taxable year in which the contribution is completely funded. Within a reasonable period thereafter, the Trustee shall pay to (in the case of an underpayment) or shall receive from the Grantor (in the case of an overpayment) the difference between any unitrust amounts paid to the Grantor and the total of such amounts actually payable together with interest at the rate fixed by the applicable regulations under Section 664 of the Internal Revenue Code of 1986 or such other similar Section or regulation in effect at the time such rate of interest is to be computed. The unitrust amounts payable to the Grantor shall be retroactively determined by applying the Trust's taxable year, valuation date, and valuation method, and the rules set out in the applicable regulations under Section 664 of the Internal Revenue Code of 1986 or such other similar Section or regulation in effect at the time such retroactive determination is made.

7. Incorrect Valuation. If the Trustee incorrectly determines the net fair market value of the Trust's assets for any taxable year, the Trustee shall pay to the Grantor any amounts underpaid or shall receive from the Grantor any amounts overpaid within a reasonable time after the error is discovered and the correct valuation determined.

8. Definition of Income. The term "income" as used in this instrument shall have the same definition as it has in Section 643(b) of the Internal Revenue Code of 1986 or of any corresponding section of any federal internal revenue code hereinafter enacted. If any cash or other property received by the Trustee is not defined as income or principal pursuant to that Section or the laws of the State of ---------- governing the administration of the Trust, the Trustee shall have full power and authority to determine how such receipt shall be applied and its determination shall be conclusive upon any party having an interest in the Trust.

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

10. Required Charitable Use. If [name of charity] 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.

11. Determining Net Fair Market Value of Assets. When determining the net fair market value of the Trust's assets, the Trustee shall take into account all of the Trust's assets and liabilities regardless of whether any particular items are taken into account in determining the Trust's income. All determinations of the net fair market value of the Trust shall be in accordance with generally accepted accounting principles and any Internal Revenue Code provisions or Internal Revenue Service regulations applicable to charitable remainder unitrusts. If there is any conflict between such provisions or regulations and generally accepted accounting principles the former shall prevail.

12. 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 privions of Section 664 of the Internal Revenue Code 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 which shall cause the Trust to have unrelated income within the meaning of Section 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.

13. 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.

14. 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 unitrust 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 code 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 enacted. 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.

15. 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.

16. 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 unitrust 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.

17. Incorporated by Reference. This Agreement may be incorporated by reference in any instrument by which property is transferred to this Trust.

18. 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 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 regarding the qualification of the Trust as a unitrust 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 ----------)

) s.s.:

COUNTY OF ---------)

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)