Common use of Payments by the Trustee Clause in Contracts

Payments by the Trustee. 6.1 The establishment of the Trust and the payment or delivery to the Trustee of money or other property acceptable to the Trustee shall not vest in any Trust Beneficiary any right, title or interest in and to any assets of the Trust. 6.2 At the direction of the Employer, the Trustee shall make payments out of the Trust Fund to Trust Beneficiaries in such manner and in such amounts as are required under the Plan ("Supplemental Benefits"). The Trustee shall follow the instructions of the Employer with respect to the payment of Supplemental Benefits and shall be fully indemnified therefore by the Employer. 6.3 Notwithstanding any other provision of this Trust Agreement to the contrary, if at any time the Trust is finally determined by the IRS not to be a "grantor trust," with the result that the income of the Trust Fund is not treated as income of the Employer pursuant to sections 671 through 679 of the Code, or if a federal tax is finally determined by the IRS or is determined by counsel to the Trustee to be payable by the Trust Beneficiaries with respect to the income of the Trust Fund prior to the final distribution of the amounts credited to the accounts of such Trust Beneficiaries, then the Trust shall immediately terminate and the assets of the Trust shall be liquidated and paid to the Trust Beneficiaries to the extent of their account balances or, if the assets are not sufficient to pay the total amount of all of the account balances, pro rata based upon the account balance. Such liquidation and payment shall be made as soon as practicable by the Trustee, regardless of whether any Trust Beneficiary's employment with Employer has terminated and regardless of the form and time of payment specified by a Trust Beneficiary, if any, under the relevant provisions of the Plan. Any remaining assets (less any expenses or costs due under Section 11 of this Trust Agreement) shall then be paid by the Trustee to Employer. If a federal tax is finally determined by the IRS or by counsel to the Trustee to be payable by one or more of the Trust Beneficiaries with respect to less than the entire income of the Trust Fund, then the preceding provision of this Section 6.3 shall apply only with respect to the effected accounts. Any amounts distributed pursuant to this Section 6.3 shall be deemed Supplemental Benefits and shall accordingly reduce the Employer's liability for such benefits under the Plan. 6.4 Employer shall remain primarily liable to pay Supplemental Benefits payable under the Plan. However, the Employer's liability under the Plan shall be reduced or offset to the extent Supplemental Benefit payments are made from the Trust Fund. 6.5 Pursuant to instruction by the Employer, The Trustee shall withhold federal and state taxes from each payment under this agreement at the rate(s) designated by the Employer and shall report and pay such amounts to the appropriate federal and state taxing authorities. The Trustee shall rely on Employer instructions and shall have no duty to inquire into the accuracy of such instructions.

Payments by the Trustee. 6.1 (a) The establishment of the Trust and the payment or delivery Company shall deliver to the Trustee of money or other property instructions acceptable to the Trustee shall not vest for determining the amounts payable to each Plan participant hereunder (including his or her beneficiaries), the form in any Trust Beneficiary any rightwhich such amount is to be paid (as provided for or available under the Plan), title or interest in and to any assets the time of the Trust. 6.2 At the direction commencement for payment of the Employersuch amounts. Except as otherwise provided herein, the Trustee shall make payments out of the Trust Fund to Trust Beneficiaries Plan participants and their beneficiaries in accordance with such manner and in such amounts as are required under the Plan ("Supplemental Benefits")instructions. The Trustee shall follow deduct from each payment under this Agreement, based on information provided to the instructions Trustee by the Company, any federal, state or local withholding or other taxes or charges which the Trustee may be required to deduct under applicable laws. (b) The entitlement of a Plan participant or his or her beneficiaries to benefits under the Plan shall be determined by the Company or such party as it shall designate under the Plan, and any claim for such benefits shall be considered and reviewed under the procedures set forth in the Plan. (c) The Company may make payment of benefits directly to Plan participants or their beneficiaries as they become due under the terms of the Employer with respect Plan. The Company shall notify the Trustee of its decision to make payment of benefits directly prior to the time amounts are payable to participants or their beneficiaries. In addition, if the principal of the Trust and any earnings thereon, are not sufficient to make payment of Supplemental Benefits benefits in accordance with the terms of the Plan, the Company shall make the balance of each such payment as it falls due. The Trustee shall notify the Company in any event in which the principal and shall be fully indemnified therefore by the Employerearnings are not sufficient. 6.3 (d) Notwithstanding any other provision of this Trust Agreement agreement to the contrary, if at any time the Trust is finally determined by the IRS Internal Revenue Service (the "IRS") not to be a "grantor trust," ", with the result that the income of the Trust Fund is not treated as income of the Employer Company pursuant to sections 671 through Sections 671-679 of the Code, or if a federal tax is finally determined by the IRS or is determined by counsel to the Trustee to be payable by the Trust Beneficiaries Plan participants or their beneficiaries with respect to the income vested interest in the entire value of the accounts maintained under the Trust Fund prior to the final distribution of the amounts credited to the accounts assets of such Trust Beneficiariesaccounts to such Plan participants or their beneficiaries, then the Trust shall immediately terminate and continue to hold the assets of in the Trust shall be liquidated and paid to the Trust Beneficiaries to the extent of their account balances or, if the assets are not sufficient to pay the total amount of all of the account balances, pro rata based upon the account balance. Such liquidation and payment shall be made as soon as practicable by the Trustee, regardless of whether any Trust Beneficiary's employment with Employer has terminated and regardless of the form and time of payment specified by a Trust Beneficiary, if any, under the relevant provisions of the Plan. Any remaining assets (less any expenses or costs due under Section 11 of this Trust Agreement) shall then be paid by the Trustee to Employer. If a federal tax is finally determined by the IRS or by counsel to the Trustee to be payable by one or more of the Trust Beneficiaries with respect to less than the entire income of the Trust Fund, then the preceding provision of this Section 6.3 shall apply only with respect to the effected accounts. Any amounts distributed pursuant to this Section 6.3 shall be deemed Supplemental Benefits and shall accordingly reduce the Employer's liability for such benefits under the Plan. 6.4 Employer shall remain primarily liable to pay Supplemental Benefits payable under the Plan. However, the Employer's liability under the Plan shall be reduced or offset to the extent Supplemental Benefit payments are made pending further instruction from the Trust FundCompany. 6.5 Pursuant to instruction by the Employer, The Trustee shall withhold federal and state taxes from each payment under this agreement at the rate(s) designated by the Employer and shall report and pay such amounts to the appropriate federal and state taxing authorities. The Trustee shall rely on Employer instructions and shall have no duty to inquire into the accuracy of such instructions.