EFTA01206930.pdf

THIS AGREEMENT made as of the day of , 2015, among LEON D. BLACK of the State of New York (hereinafter referred to as the "Grantor"), and BRADLEY J. WECHSLER (hereinafter along with any other person, bank or trust company qualifying as additional or successor trustees, referred to as the "Trustees"). WITNEEaETH: This Agreement shall be known as the APO-B TRUST. The Grantor hereby transfers to the Trustees the property shown on Schedule A annexed hereto, which property shall be held by the Trustees IN TRUST in accordance with the provisions of this Agreement. Unless otherwise directed herein, or in the documentation directing property to be held in trust under this Agreement, property set aside in trust in accordance with this Agreement shall be governed by Clause FIRST. FIRST: DISCRETIONARY TRUST All trust property directed to be disposed of under, or in accordance with, this Clause FIRST shall be held by the Trustees IN TRUST (the "Discretionary Trust") in accordance with the following provisions: (A) The Trustees shall pay so much of the income of the Discretionary Trust as the Trustees may deem advisable from time to time, in equal or unequal shares, to or for the use or benefit of one or more of the Grantor's wife DEBRA and the Grantor's descendants living from time to time, in the Trustees' sole and absolute discretion. Any income not directed to be paid for any year of the Discretionary Trust shall be accumulated by adding such income to the principal of the Discretionary Trust. (B) At any time and from time to time, the Trustees may pay so much of the principal of the Discretionary Trust, in equal or unequal shares, to or for the EFTA01206930 Doc.: USI:9769971v7 use or benefit of one or more of DEBRA and the Grantor's descendants living from time to time, in the Trustees' sole and absolute discretion. (C) In lieu of making a distribution of income and/or principal directly to one or more of the Grantor's descendants, as beneficiaries of the Discretionary Trust, the Trustees may direct that such income and/or principal so distributed be identified by the name of a particular descendant and (i) disposed of under Clause SECOND, or (ii) paid to the Trustees of any "Other Trust" as authorized by paragraph (D) of Clause THIRD. (D) Unless sooner terminated pursuant to the foregoing provisions of this Clause FIRST, the Discretionary Trust shall terminate upon the earlier to occur of (i) the death of DEBRA and all of the Grantor's descendants, and (ii) the expiration of the period set forth in Clause FIFTH. SECOND: SEPARATE TRUSTS FOR DESCENDANTS All trust property directed to be held IN TRUST for a descendant of the Grantor under or in accordance with this Clause SECOND shall be held in a separate trust (a "Separate Trust") for the benefit of the descendant for whom such property was set aside (each such descendant herein referred to as the "Beneficiary" with respect to his or her Separate Trust), in accordance with the following provisions: (A) The Trustees shall pay to or apply for the use or benefit of the Beneficiary and his or her descendants so much, including all, of the income of his or her Separate Trust as the Trustees, in the Trustees' sole and absolute discretion, may deem advisable from time to time. Any income of the Separate Trust not directed to be 2 EFTA01206931 Doc.: USI:9769971v7 paid for any year of the trust shall be accumulated by adding such income to the principal of the Separate Trust. (B) The Trustees may, in the Trustees' sole and absolute discretion, pay to or apply for the use or benefit of the Beneficiary and his or her descendants so much, including all, of the principal of his or her Separate Trust as the Trustees may deem advisable. (C) Upon the death of the Beneficiary, the remaining property of his or her Separate Trust shall be disposed of as the Beneficiary may appoint by his or her last Will duly admitted to probate, in favor of any one or more of the Grantor's descendants; provided, however, that subject to the provisions of paragraph (D) of Clause FOURTH, the Beneficiary may not appoint any such property in favor of himself or herself, his or her estate, his or her creditors or the creditors of his or her estate. Any trust property not effectively appointed by the Beneficiary pursuant to this paragraph shall be divided, per stirpes, for the Beneficiary's then living descendants, or, if the Beneficiary has no then living descendants, per stirpes, for the then living descendants of the Beneficiary's nearest ancestor who is either the Grantor or a descendant of the Grantor, and who has then living descendants, or if there be no such descendants, such property shall be divided, per stirpes, for the Grantor's then living descendants; provided, however, each share set aside hereunder (other than by exercise of a power of appointment) for a descendant of the Grantor shall not vest in or be distributed to such descendant, but instead shall be held in a Separate Trust for such descendant in accordance with this Clause SECOND or if a Separate Trust shall already be in existence 3 EFTA01206932 Doc.: USI:9769971v7 for such descendant under this Clause SECOND, such share shall be added to such Separate Trust. (D) Except as set forth in paragraph (E) of Clause THIRD and paragraph (D) of Clause FOURTH, all trust principal set aside for a descendant of the Grantor and directed to be disposed of under or in accordance with this Clause SECOND shall be held in a single Separate Trust for such descendant so that there shall be only one Separate Trust for such descendant under this Clause SECOND. (E) The Grantor further authorizes and empowers the Trustees, in the Trustees' sole and absolute discretion, to retain the trusts under this Clause SECOND in one fund for the purpose of investment and reinvestment, crediting each trust with its proportionate share of income, profits and appreciation in value, and charging each trust with its proportionate share of expenses, losses and diminution in value. This provision is solely for the purpose of convenience in administration and nothing contained herein shall destroy the individual character of any trust or prevent the release of principal funds upon the termination in whole or in part of any trust or the making of discretionary payments from the income and/or principal of such trust. THIRD: GUIDELINES AND LIMITATIONS (A) (1) After taking into account the provisions of paragraph (C) of this Clause THIRD, in exercising the discretionary powers granted to the Trustees to pay principal under any trust created hereunder, the Trustees shall have absolute discretion and plenary power to pay principal for any reason or purpose whatever, even to the extent of terminating a trust by paying all of the principal at any one time. In paying principal, the Trustees need not consider the other resources that 4 EFTA01206933 Doc.: USI:9769971v7 may be available from any source to the beneficiary and may pay principal without regard to the need of the beneficiary therefor. The Grantor suggests to the Trustees, but only by way of illustration and without limiting their plenary powers, that principal may be paid in the Trustees' discretion not only to enable a beneficiary to meet the expenses of emergencies or illness or medical, dental or nursing care, but also to make up deficiencies in income caused by inflation or changes in the beneficiary's cost or style of living; because of the burdens of income or estate or gift or generation-skipping transfer ("GST") taxation or changes in the tax laws; to enable a beneficiary to obtain the best possible education (including graduate and professional training), to take advantage of a business, professional or investment opportunity, to assume and meet family responsibilities, travel, acquire a dwelling (including a seasonal dwelling or a cooperative apartment), or for any other reason whatsoever that the Trustees may have at any time. The Grantor wishes to stress that the interest of the remaindermen shall be secondary and subordinate to the well-being of the income beneficiary or beneficiaries. The judgment of the Trustees as to whether, when and to what extent to pay principal of any trust shall be absolute and conclusive and no court shall have power under any statute to direct payment of principal to any beneficiary or any creditor of a beneficiary. (B) In exercising the discretionary powers granted to the Trustees with respect to the Discretionary Trust and each Separate Trust, after taking into account the provisions of paragraph (C) of this Clause THIRD, in determining whether to pay or accumulate income, the Trustees may pay income for any reason or purpose, and the Trustees need not consider the other resources that may be available from any source to a beneficiary. The Trustees may at any time, in their sole and absolute discretion, pay 5 EFTA01206934 Doc.: USI:9769971v7 income and/or principal to any one of the eligible beneficiaries, exclusively, or to any two or more of such beneficiaries in equal or unequal shares, without regard to any prior payments that may have been made by the Trustees. The determinations of the Trustees as to what extent and to whom to pay (or not pay) income and principal at any time shall be conclusive. (C) In exercising the discretionary powers to pay income and/or principal to a beneficiary of the Discretionary Trust or a Separate Trust, in addition to any other factors the Trustees deem appropriate, the Grantor requests, but does not direct or require, that the Trustees consider the following factors: (1) Whether the beneficiary has taken appropriate steps to educate and familiarize himself or herself regarding financial matters, asset management and estate planning, and whether the beneficiary has reasonable access to competent professional advisors. (2) Whether there is a Pending Matrimonial Action (as defined in Clause TWELFTH) or Marital Discord (as defined in Clause TWELFTH) with respect to the beneficiary. (3) The extent to which the beneficiary is indebted to creditors, including former spouses, or otherwise involved in any litigation. (4) Whether the beneficiary is suffering from a psychological or medical condition that may impair the beneficiary's emotional stability, regardless of whether the beneficiary is seeking any treatment, either inpatient or outpatient. The Trustees may consult with medical personnel as necessary to make the determination. 6 EFTA01206935 Doc.: USI:9769971v7 (5) Whether the beneficiary will use the distributed funds to perpetuate a drug or alcohol problem or other negative addictive activities, such as gambling. (D) Subject to Clause FIFTH, the Grantor specifically authorizes the Trustees who may participate in decisions with respect to distributions from a trust created under any provision of this Agreement (the "Original Trust"), in lieu of distributing income and/or principal to a beneficiary or beneficiaries of the Original Trust (the "Initial Class"), to pay, for any reason or purpose whatsoever, so much, including all of such income and/or principal to one or more existing trusts or new trusts to be created or established by any person (including the Trustees) at any time, whether with the Trustees of the Original Trust or other trustees, for such beneficiary or beneficiaries (an "Other Trust"), in such amounts or proportions, even to the exclusion of one or more current or contingent beneficiaries of the Original Trust, as said Trustees, with absolute discretion, deem advisable, without notice to current or contingent beneficiaries of the Original Trust and without court filings of any kind; provided, however, no share of principal from an Original Trust with an inclusion ratio (as defined in Section 2642(a)(1) of the Code) of greater than zero shall be added to an Other Trust with an inclusion ratio of zero. Notwithstanding the foregoing, no portion of any Original Trust that would be a "qualified subchapter S trust" (as defined in Section 1361(d)(3) of the Code) or an "electing small business trust" (as defined in Section 1361(e)(1) of the Code) from and forever after the time, if any, that such Original Trust first holds or is first entitled to receive shares of stock of an S corporation (as defined in Section 1361(a) of the Code) may be paid to an Other Trust unless such Other Trust also 7 EFTA01206936 Doc.: USI:9769971v7 qualifies as a qualified subchapter S trust or an electing small business trust. Such Other Trust (i) may include a provision granting a power of appointment to a beneficiary of the Original Trust, which power may be in favor of a broader or more limited class of permissible appointees than any such power granted to such beneficiary under the Original Trust, and (ii) may permit the payment of income and/or principal to beneficiaries who are not members of the Initial Class but only after the death of the last survivor of the members of the Initial Class. (E) The Trustees are directed to divide property in any trust under this Agreement with an inclusion ratio, as defined in Section 2642(a)(1) of the Code of neither one nor zero into two separate trusts representing two fractional shares of the property being divided, one to have an inclusion ratio of one (the "nonexempt trust") and the other to have an inclusion ratio of zero (the "exempt trust"). Any such separate trust shall have provisions identical to the trust so divided. (1) Without in any way limiting the authority and discretion granted to the Trustees by any other provision of this Agreement, the Grantor wishes to confirm that in exercising the discretionary powers granted to the Trustees to pay principal to a beneficiary from each such separate trust, that the Trustees may pay principal to such beneficiary exclusively from one of such separate trusts or in equal or unequal shares from both of such separate trusts, without regard to any prior distributions that have been made by the Trustees from such trust, even to the extent of terminating either or both of such separate trusts. (2) No share of principal of any trust with an inclusion ratio (as defined in Section 2642(a)(1) of the Code) greater than zero which is directed to 8 EFTA01206937 Does: USI:9769971v7 be continued in trust at the death of a beneficiary shall be added to a trust with an inclusion ratio of zero. (F) The Independent Trustees (as defined in Clause TWELFTH) shall have the power (but not the obligation), in their sole and absolute discretion, to pay to the United States Treasury and any state or local taxing authority, such amounts as the Grantor or the Grantor's legal representatives shall certify as being required to discharge the Grantor's tax liability (including but not limited to Federal, state or otherwise) in respect of income realized by the trust and not distributed to the Grantor. The Grantor confirms that no payment under this paragraph shall exceed the difference between (i) the Grantor's Federal and state income tax liability and (ii) the Grantor's Federal and state income tax liability computed as if the trust is not a grantor trust under Sections 671 et. seq. of the Code. The Grantor further confirms that there is no understanding or pre-existing arrangement, express or implied, between the Grantor and the Independent Trustees regarding the Independent Trustees' exercise of discretion pursuant to this paragraph or Section 7-1.11 of the New York Estates, Powers and Trusts Law. The provisions of this paragraph are intended to come within the safe harbor provisions of Revenue Ruling 2004-64. Accordingly, the discretionary authority granted to the Independent Trustees under this paragraph and under New York law should not cause the value of the trust assets to be includible in the Grantor's gross estate. The Grantor directs that no court shall have power under any statute to direct payment under this paragraph. Notwithstanding the foregoing provisions of this paragraph, the Independent Trustees may at any time and from time to time release the power granted 9 EFTA01206938 Doc.: USI:9769971v7 under this paragraph. Such release may be for a limited period or under stated conditions or indefinitely. (G) Notwithstanding any other provision of this Agreement, the Grantor directs that: (1) No Trustee hereunder shall have any power or discretion, or be deemed to be a Trustee, with respect to payments, applications or allotments of income or principal to or for the use or benefit of any person whom such Trustee, in his or her individual capacity, is legally obligated to support, if such payment, application or allotment would constitute the discharge of any part of such Trustee's legal support obligation. (2) Discretionary powers granted to the Trustees hereunder with respect to payments, applications or allotments of the income and/or principal of any trust hereunder ("the trust hereunder") to or for the use or benefit of any beneficiary thereof shall be exercisable solely by the Trustees other than any Trustee (i) who has a current beneficial interest in such trust, (ii) who has a beneficial interest in the remainder of such trust hereunder that would cause the exercise of such power to be treated as a gift by such Trustee for Federal gift tax purposes, (iii) whose disclaimer, in his or her individual capacity, resulted in the funding, in whole or in part, of such trust hereunder, or (iv) who is a permissible beneficiary of the income and/or principal of any other trust, whether created under this Agreement or otherwise ("such other trust"), if any Trustee of such other trust is a permissible beneficiary of the trust hereunder. Notwithstanding the foregoing, if at any time there is no Trustee qualified and acting for the purpose of exercising such discretionary powers other than a Trustee described in (i), 10 EFTA01206939 Does: USI:9769971v7 (ii), (iii) or (iv) of the preceding sentence, such powers shall nonetheless be exercisable by all the Trustees (subject to any other provision of this Agreement restricting the exercise of such powers), in their discretion, but solely for the support and maintenance of such beneficiary in his or her accustomed standard of living and for his or her health and education. (3) No person who may be serving at any time as a Trustee shall have any right, power, control or incidents of ownership over any insurance policy on such individual's life; if a trust acquires an interest in an insurance policy on the life of a Trustee-beneficiary, the Independent Trustees shall exercise all such rights, powers, control and incidents of ownership over such policy. The Grantor hereby confirms that if any trust owns an interest in a limited liability company, partnership, corporation or other business arrangement, the Trustees shall be bound by the provisions of any operating agreement, partnership agreement, shareholders' agreement or other agreement governing or otherwise effecting such limited liability company, partnership, corporation other business arrangement. FOURTH: POWERS OF APPOINTMENT (A) No testamentary power of appointment granted by the provisions of this Agreement shall be deemed to have been exercised unless the donee of the power specifically identifies the power in his or her Will and expressly exercises the power. In the absence of such identification of the power and express exercise, the power of appointment shall not be deemed to be exercised. 11 EFTA01206940 Doc.: USI:9769971v7 (B) The donee of any power of appointment may appoint in favor of one beneficiary exclusively, or in favor of two or more beneficiaries in equal or unequal shares. In exercising the power, the donee may appoint outright or in trust and may grant further powers to appoint, but no such further power of appointment may be exercised to postpone the vesting of any interest or to suspend the power of alienation for a period beyond that which is permitted by law as described in Clause FIFTH. Appointments in trust shall be administered by such Trustees or Trustee as the donee may designate, subject to the management and investment powers granted by this Agreement or such other and different management and investment powers that the donee may grant; and the donee may direct that an appointed trust shall have a situs outside of New York and shall be governed by the law of the appointed situs. (C) Notwithstanding any provisions to the contrary in this Agreement: No donee of a power of appointment shall have the right to direct the disposition of any trust property consisting of an insurance policy on the life of the donee. (D) Notwithstanding any provisions to the contrary in this Agreement: the Independent Trustees are authorized and empowered to expand the power of appointment granted under Clause SECOND as provided in this paragraph. Such power of appointment, in the sole discretion of the Independent Trustees, may be expanded so that such beneficiary may exercise a testamentary general power of appointment (within the meaning of Section 2O41 of the Code) over all or a part of the trust to which the power relates (including a pecuniary sum). The scope of any such expanded power of appointment may be as expansive or limited as the Independent Trustees, in their sole and absolute discretion, may determine. Any power thus expanded 12 EFTA01206941 Doc.: USI:9769971v7 may be made exercisable by such beneficiary solely under his or her last Will duly admitted to probate. If the Independent Trustees so expand any such power, the Independent Trustees may revoke such expanded (general) power, may again expand the power after a revocation, and in expanding any power, may make the exercise of such expanded (general) power require the consent of the Independent Trustees then in office. Without limiting the Independent Trustees' absolute discretion hereunder, it is anticipated that the Independent Trustees' authority under this paragraph will be used only if doing so will reduce GST taxes more than it increases estate taxes, and otherwise does not create an adverse result for the beneficiary's estate. If a power over a portion of any such trust is expanded, such trust shall be divided into corresponding fractional shares constituting separate trusts of which one shall be subject to the expanded (general) power and the other not. The Independent Trustees are authorized to release irrevocably the right to expand a power of appointment or revoke an expanded (general) power of appointment and consent to the exercise of an expanded power by an acknowledged instrument in writing. Nothing herein shall be construed as requiring the Independent Trustees to expand the power of appointment granted to the beneficiary so he or she has a general power of appointment. In the event that the Independent Trustees expand any such power of appointment so that such beneficiary may exercise a general power of appointment, that power shall be deemed to have been exercised only if such beneficiary specifically identifies the power in his or her last Will duly admitted to probate and expressly exercises the power, and in the absence of such identification of the power and express exercise, said power of appointment (if any) shall be deemed to be unexercised. Nothing herein shall be construed as granting the Independent Trustees the authority to 13 EFTA01206942 Does: USI:9769971v7 revoke any special (limited) power of appointment granted to the beneficiary of any trust hereunder. FIFTH: RULE AGAINST PERPETUITIES Notwithstanding any other provision in this Agreement: With respect to each trust created under this Agreement and any Other Trust to which property of any Original Trust is distributed pursuant to paragraph (D) of Clause THIRD of this Agreement, unless such trust shall earlier terminate pursuant to the provisions governing the disposition of such trust, it shall terminate upon the expiration of twenty-one (21) years after the death of the last survivor of DEBRA and the Grantor's children BENJAMIN ELI BLACK, JOSHUA MAX BLACK, ALEXANDER SAMUEL BLACK, and VICTORIA RACHEL BLACK. With respect to any trust created under Clause FIRST, upon such termination the remaining principal of such trust shall pass, per stirpes, to the then living descendants of the Grantor. With respect to any trust under Clause SECOND, upon such termination the remaining principal of such trust shall pass to the Beneficiary thereof. With respect to any Other Trust, upon such termination the remaining principal of such trust shall be disposed of in accordance with the provisions of the instrument governing such Other Trust. SIXTH: POWER TO REACOUIRE Except as otherwise provided below, the Grantor at any time or from time to time may acquire or reacquire any portion of any trust hereunder, other than shares of voting stock of a controlled corporation (within the meaning of Section 2036(b) of the Code), whether owned directly or indirectly through one or more limited liability companies, partnerships or other entities, by substituting therefor other property of an 14 EFTA01206943 Doc.: USI:9769971v7 equivalent value, valued on the date of substitution. Notwithstanding any other provision of this Agreement, the Grantor may exercise this power without the consent of the Trustees. Although this power is exercisable by the Grantor in a non-fiduciary capacity without the consent of any of the Trustees, the Trustees who may participate in decisions with respect to distributions, if they believe that the property the Grantor seeks to substitute for trust property is not in fact property of equivalent value, shall seek a determination by a court of competent jurisdiction to assure that the equivalent value requirement of this Clause is satisfied. Notwithstanding the foregoing, the Grantor may not exercise his power under this Clause in such a manner that may shift benefits among the trust beneficiaries within the meaning of Revenue Ruling 2008-22 and Revenue Ruling 2011-28. The Grantor may at any time and from time to time release, in whole or in part, the powers retained by him under this Clause SIXTH with respect to any trust hereunder. Such release may be for a limited period or under stated conditions or indefinitely. Such release shall be made by an instrument in writing signed by the Grantor and delivered to the Trustees of the trust with respect to which the release applies. SEVENTH: TRUSTEE PROVISIONS (A) BRADLEY J. WECHSLER shall serve as Trustee of all trusts created hereunder. (B) (1) Each individual serving from time to time as a Trustee (including each individual who may be appointed pursuant to this paragraph) may appoint any person (other than the Grantor or any other donor to the trust) or bank or trust company to serve as his or her successor Trustee of any trust. In addition, the 15 EFTA01206944 Doc.: USI:9769971v7 individual or individuals serving at any time as Trustees, acting unanimously if more than one is serving, may appoint any person (other than the Grantor or any other donor to the trust) or bank or trust company to serve as an additional Trustee. Appointments shall be by instrument filed with the Trustees then in office. Notwithstanding the foregoing: No more than eight (8) Trustees of the Discretionary Trust and no more than five (5) Trustees of any Separate Trust shall serve at any time; and no appointment of a bank or trust company shall be effective if a corporate fiduciary is already serving as a Trustee. (2) If a vacancy in the office of Trustee occurs which is not filled in accordance with the preceding provisions of this paragraph (B) of this Clause, such individual (other than the Grantor or any other donor to the trust), or bank, or trust company (or such series of individuals, or banks, or trust companies) shall become Trustee as is or was designated (i) by the Grantor, or, if he is not living or is unable to make and has not theretofore made such designation, (ii) by a majority of the adult current permissible beneficiaries of such trust, or, if no beneficiary is an adult, (iii) by a majority of the guardians of any minor beneficiaries then living; provided, however, that such designation by the Grantor under this paragraph shall only be effective so long as the designated successor Trustee is not related or subordinate to the Grantor or any beneficiary hereunder within the meaning of Section 672(c) of the Code. (C) Any designation made under the provisions of paragraphs (B) or (P) of this Clause shall be made by a signed instrument mailed or delivered to any Trustee hereunder or to the Trustee designated therein. At any time before any such designation becomes effective, it may be revoked in similar manner by the individual or 16 EFTA01206945 Doc.: USI:9769971v7 individuals who made it. Any designation hereunder shall become effective at the time specified in the instrument of designation. (D) No Trustee, including any who is appointed under the provisions of this Clause, and regardless of the State of residence of such Trustee, shall be required to give any bond or other security for any purpose in any jurisdiction, including any bond that would otherwise be required for the return of any commissions of a Trustee. (E) Any Trustee of any trust may resign, by instrument in writing filed with the other Trustees then in office or if no co-Trustee be in office, to the Trustee who succeeds such resigning Trustee pursuant to the foregoing provisions of this Agreement. (F) Except as otherwise provided in this Agreement, decisions of the Trustees of each trust hereunder shall be made by majority vote of the Trustees of such trust (or by unanimous vote if only two Trustees are acting). (G) Any Trustee may, by revocable power of attorney, delegate to one or more of the co-Trustees then in office the full exercise of all or any powers granted by any provision of this Agreement to the Trustees, provided, however, that no discretionary power may be delegated to a Trustee who is specifically precluded by law or by the provisions of this Agreement from participating in the exercise of such power. (H) All management and investment powers shall remain exercisable until distribution of every trust has been completed. (1) The Trustees, by written unanimous consent if more than one Trustee is serving, may authorize any individual, including, but not limited, to any of 17 EFTA01206946 Does: USI:9769971v7 the Trustees serving at any time, to perform ministerial acts on behalf of any trust created hereunder once the Trustees have reached a decision, including signing checks or instruments of transfer or giving instructions for the purchase or sale of securities or performing other ministerial acts on behalf of all of the Trustees. (J) The account of a resigning Trustee and the account of a deceased Trustee may be settled by the other Trustees then in office, or if no co-Trustee be in office, then by the Trustee who may succeed such resigning Trustee pursuant to the foregoing provisions of this Agreement. (K) No Trustee shall be required to render in court annual or periodic accounts. (L) Persons dealing with the Trustees need not inquire concerning the validity of anything done by the Trustees or anything the Trustees purport to do or the application of any money paid or property transferred to or upon the order of the Trustees, but may act without further inquiry in accordance with the writings signed by the Trustees. All persons dealing with the Trustees may act on the assumption that a trust is still in existence until they receive actual notice of its termination. (M) Parties dealing with the Trustees may rely upon a copy of this Agreement that is certified by a Notary Public to be a true copy. (N) In any proceeding relating to any trust created under this Agreement, where a party to such proceeding has the same interest as a person under a disability, it shall not be necessary to serve with process the person who is under a disability. 18 EFTA01206947 Does: USI:9769971v7 (0) The Trustees hereunder may enter into transactions with the Executors of an estate or the Trustees of another trust and purchase or in any other manner acquire property from such estate or such other trust, even though a Trustee hereunder may also be acting as the Executor of such estate or Trustee of such other trust, provided that any such purchase is for full fair market value in money or money's worth. (P) (1) The Grantor shall have the power to remove a Trustee, with or without cause, by delivering notice to the Trustee and appointing a successor Trustee; provided, however, that such authority shall be effective if, and only if, the Grantor appoints a successor Trustee (other than himself) who is not related or subordinate to the Grantor within the meaning of Section 672(c) of the Code, and such designated successor so qualifies as Trustee. Notwithstanding the foregoing provisions of this paragraph, the Grantor may not exercise the power to remove a Trustee because of such Trustee's exercise or failure to exercise a power which, if held by the Grantor, would result in any portion of the trust being included in the Grantor's gross estate for Federal estate tax purposes. The Grantor may at any time release the powers granted under this subparagraph (P)(1). (2) Upon the Grantor's death, Incapacity (as defined in Clause TWELFTH) or release of the power referred to in subparagraph (P)(1) above, the Special Committee (as hereinafter defined), acting by majority, shall have the power to remove a Trustee, with or without cause, by delivering a signed written instrument to the Trustee being so removed and appointing a successor Trustee; provided, however, that such authority shall be effective only if: (i) the Special Committee appoints a successor Trustee (other than a member of the Special Committee) who is not related or subordinate 19 EFTA01206948 Doc.: USI:9769971v7 to any member of the Special Committee within the meaning of Section 672(c) of the Code (as amended from time to time) and (ii) such successor qualifies as Trustee. Notwithstanding the foregoing, no member of the Special Committee shall participate in the exercise of the power to remove a Trustee because of such Trustee's exercise or failure to exercise a power which, if held by such member, would result in any portion of the trust being included in such member's gross estate for Federal estate tax purposes. Each member of the Special Committee may at any time release the powers granted to him or her under this subparagraph (P)(2). (3) For purposes of this Agreement, the words "Special Committee" shall mean DEBRA and such of BENJAMIN ELI BLACK, JOSHUA MAX BLACK, ALEXANDER SAMUEL BLACK and VICTORIA RACHEL BLACK who have attained the age of thirty (30) years. (Q) (1) During the Grantor's lifetime, no individual may receive compensation for his or her services as Trustee of any trusts created hereunder (but shall nevertheless be entitled to reimbursement for reasonable expenses incurred in connection with the administration of any trust created hereunder). After the Grantor's death, an individual may receive for his or her services as Trustee of any trusts created hereunder (in addition to reimbursement for reasonable expenses incurred in connection with the administration of any trust created hereunder) such compensation as may be agreed to by the Special Committee. (2) The qualification of any individual as Trustee shall be deemed an acceptance of the foregoing provisions. 20 EFTA01206949 Doc.: USI:9769971v7 EIGHTH: TRUSTEE POWERS In addition to the powers granted by law and by any other provision of this Agreement, the Grantor grants to the Trustees full power to do everything in administering the trusts that they deem advisable, to the full extent that an individual owning property would have and without prior court authority, including the power: (A) To retain so long as the Trustees may deem advisable, and to acquire by purchase or in any other manner, any kind of real property and personal property, or undivided interests therein, including (without limitation) mortgages, bonds, notes, debentures, certificates of deposit, options, puts, calls, futures, forwards and other derivative investments, warrants, partnerships, common and preferred stocks, and shares or interests in investment trusts, mutual funds (including without limitation trusts or funds for which any corporate Trustee hereunder or any affiliate thereof acts as investment advisor or performs custody or any other services, in which case such corporate Trustee or affiliate may be compensated for such services in addition to the compensation of such corporate Trustee as a fiduciary hereunder), common trust funds, and property which is outside of New York or the United States -- all without diversification as to kind or amount, and without being limited to investments authorized by law for the investment of trust funds. It is also the Grantor's intent that the Trustees may, in their sole and absolute discretion, make different investments for the trusts under this Agreement. The Trustees are specifically authorized to retain, or to purchase and retain, any real property or personal property in any trust hereunder, for the use, possession or enjoyment of any beneficiary of such trust and to utilize the income and principal of any such trust for purposes of maintaining the same, including without 21 EFTA01206950 Doc.: USI:9769971v7 limitation, for payment of all taxes, assessments, expense of fuel, gas and electricity, water rents and all expenses of maintenance, cleaning, framing, restoration and repair. The Trustees shall not incur any liability or accountability for the loss, destruction, impairment, deterioration, waste, damage or injury to any such property. The Trustees are specifically authorized to continue to hold such property even though such property shall fail to appreciate or shall depreciate in value. (B) To hold any property of any kind, whether real or personal, at any time held hereunder in the name of nominee or nominees, or in the name of any corporate Trustee without disclosing any fiduciary capacity, and to hold any such personal property in any State; and to receive and keep any stocks, bonds or other securities unregistered or in such condition that title thereto will pass by delivery. (C) To exercise any and all of the powers, authorities and discretion conferred hereunder in respect of any securities of any corporate Trustee acting hereunder, or in respect of any securities of any holding company or corporation owning securities of any corporate Trustee acting hereunder. (D) To sell for cash or on credit (at public or private sale), exchange, mortgage, lease for any period (either as landlord or tenant and including renewals of the term) and modify, extend or cancel leases, grant options, or otherwise dispose of or deal with any real or personal property, all regardless of statutory restrictions or the probable duration of any trust, in such manner and upon such terms and conditions as the Trustees may deem advisable and without first obtaining a court order; to erect, renovate or alter buildings or otherwise improve and manage buildings and property; demolish buildings; make ordinary and extraordinary repairs; grant easements 22 EFTA01206951 Does: USI:9769971v7 and make party wall contracts; dedicate roads; subdivide; adjust boundary lines and partition; and to do everything with respect to interests in any property that any individual owner may do. (E) To distribute in kind or in money, or partly in each, even if distributed shares be composed differently, and for such purposes the Trustees' allocations and determinations shall be given effect if reasonably made. (F) To apply any income or principal of any trust hereunder that is payable to a minor or any person who in the judgment of the Trustees is incapable of making proper disposition thereof, by payments on behalf of the beneficiary to anyone with whom the beneficiary resides (other than a donor of such trust) and/or by payments in discharge of the beneficiary's bills — all without regard to other resources of the beneficiary, without the intervention of any guardian or committee or like fiduciary, and without obligation to see to the further application thereof. (G) To employ (either directly or indirectly through an investment in any mutual fund or other management type investment company or trust) investment counsel, accountants, depositories, custodians, brokers, consultants, agents, attorneys and other employees, irrespective of whether any person, firm or entity so employed shall be a Trustee hereunder or shall be an affiliate of a Trustee hereunder and irrespective of whether any firm or entity so employed shall be one in which a Trustee hereunder shall be a partner, stockholder, director, officer, member or affiliate or shall have any interest (and in the case of any affiliated securities broker, such broker is hereby authorized to act as the counterparty in riskless principal transactions with any trust hereunder and, if such affiliated broker is a specialist or market-maker with respect to one 23 EFTA01206952 Doc.: USI:9769971v7 or more particular securities, otherwise to purchase from or sell to any trust hereunder any of such securities at the then prevailing market price), to delegate to investment counsel the power to make investment determinations hereunder, including without limitation determinations as to the acquisition, retention or disposition of any asset or assets, by purchase, sale or otherwise, and to pay the usual compensation for any of the foregoing services out of principal or income as may be deemed advisable; and such compensation (including without limitation any fees charged or compensation paid by any mutual fund or other management type investment company or trust for services rendered by any Trustee or affiliate of a Trustee hereunder acting as investment advisor, custodian, transfer agent, registrar, sponsor, distributor, manager or other provider of services to such entity) may be paid without diminution of or charging the same against the commissions or compensation of any Trustee hereunder; and any Trustee who shall be a partner, stockholder, director, officer, member or affiliate in any such firm or entity shall nevertheless be entitled as partner, stockholder, director, officer, member or affiliate to receive such Trustee's share of the compensation paid to such firm or entity. (H) To renew, assign, modify, extend, compromise, abandon or release, with or without consideration, or submit to arbitration, obligations or claims held by or asserted against the Trustees or which affect trust assets, all as the Trustees may deem advisable. (I) To borrow, with sole and absolute discretion and without the order or approval of any court, such sums of money at any time and from time to time for such periods of time upon such terms and conditions from such persons or corporations (including any Trustee hereunder or any affiliate thereof) for such purposes 24 EFTA01206953 Doc.: USI:9769971v7 as may be deemed advisable, and to secure such loans by the pledge or hypothecation of any property held hereunder; and the lender shall have no obligation to inquire as to the application of the sums loaned or as to the necessity, expediency or propriety of the loan. (I) To make loans to any beneficiary who is currently eligible to receive income from a trust and to entities in which a trust hereunder has an