THE PITTSTON COMPANY
EMPLOYEE WELFARE BENEFIT TRUST
TABLE OF CONTENTS
ARTICLE I Definitions.......................... 2
ARTICLE II Purpose.............................. 5
ARTICLE III Contributions........................ 5
ARTICLE IV Trustee Powers, Rights and Duties.... 6
ARTICLE V Administrative Committee............. 19
ARTICLE VI Accounting and Recordkeeping......... 26
ARTICLE VII Benefits............................. 30
ARTICLE VIII Amendment ........................... 31
ARTICLE IX Termination ......................... 32
ARTICLE X Miscellaneous ....................... 33
ARTICLE XI Instructions ........................ 39
EXHIBIT A ..................................... 42
EXHIBIT B ..................................... 43
THE PITTSTON COMPANY
EMPLOYEE WELFARE BENEFIT TRUST
THIS AGREEMENT is entered into by and between THE PITTSTON COMPANY, a
Virginia corporation (hereinafter referred to as the "Sponsor"), and THE CHASE
MANHATTAN BANK as trustee (hereinafter referred to as the "Trustee");
W I T N E S S E T H:
WHEREAS, the Sponsor and its affiliates have provided certain welfare
benefits to eligible employee and retirees pursuant to or by reference to
collective bargaining agreements which are or have been in effect; and
WHEREAS, the Sponsor desires to establish a voluntary employees'
beneficiary association employee welfare benefits trust to be known as THE
PITTSTON COMPANY EMPLOYEE WELFARE BENEFIT TRUST (hereinafter referred to as the
"Trust"), through which it will provide certain welfare benefits for the
exclusive benefit of eligible employees and retirees and their dependents,
pursuant to or by reference to certain designated collective bargaining
agreements which are or have been in effect between the Sponsor and its
affiliates and collective bargaining units; and
WHEREAS, the Trust is intended to be exempt from Federal income tax
under Section 501 (c) (9) of the Internal Revenue Code of 1986 (as such section
may be amended or renumbered from time to time) and to comply with the
provisions of the Employee Retirement Income Security Act of 1974 and any other
applicable law; and
WHEREAS, the Administrative Committee will serve as Administrator for
the Plan with respect to the administration of the Trust.
NOW, THEREFORE, the Sponsor hereby establishes the Trust as of the
Effective Date, and the Trustee agrees to serve as Trustee of the Trust, to
hold, administer and distribute the assets of the Trust, in trust, for the uses
and purposes and in accordance with the terms and conditions of this Agreement,
and as it may hereafter be amended.
The following definitions apply for purposes of this Trust:
Section 1.1. "Act" means the Employee Retirement Income Security Act of
1974, as amended from time to time, and the regulations thereunder.
Section 1.2. "Administrative Committee" means (i) the persons or
entities designated by the Board who from time to time serve as the
Administrative Committee, or (ii) the Chief Financial Officer of the Sponsor in
the event that no persons or entities are then serving as the Administrative
Committee under this Agreement.
Section 1.3. "Administrator" means, within the terms of the Act and
solely for purposes of this Trust, the Administrative Committee.
Section 1.4. "Agent for Service of Process" means, with respect to this
Trust, the Trustee.
Section 1.5. "Agreement" means this Trust instrument.
Section 1.6. "Applicable Law" means the provisions of any law, or any
administrative guideline, ruling, exemption, or determination of a judicial,
semi-judicial, regulatory, self-regulatory or statutory authority, in each case,
applicable to the Trustee, the Sponsor, or the Plan after taking into account
any preemptive effect of the Act.
Section 1.7. "Beneficiary" means any person or persons (including, but
not limited to, an individual, trust, estate, executor, administrator or
fiduciary, whether corporate or otherwise) designated as such in accordance with
the provisions of the Plan or the Trust to receive any distribution from the
Section 1.8. "Board" means the Board of Directors of the Sponsor or the
person or persons to whom such Board of Directors may delegate any of its
rights, duties or powers hereunder.
Section 1.9. "Code" means the Internal Revenue Code of 1986, as amended
from time to time, and the regulations thereunder.
Section 1.10. "Collective Bargaining Agreement" means a contract between
the Employer and a labor organization governing wages, hours and other terms and
conditions of employment as provided in the National Labor Relations Act, as
amended, which is or has been in effect.
Section 1.11. "Corporate Action" means any subscription right, bonus
issue, stock repurchase plan, redemption, exchange, tender offer, or similar
matters with respect to any property that requires discretionary action by the
Trust Fund, but does not include proxy voting.
Section 1.12. "Dependent" means an individual who qualifies as a
dependent under the terms of the Plan.
Section 1.13. "Effective Date" means August 2, 1999.
Section 1.14. "Employee" means any person who is considered an employee
of the Employer under the Plan.
Section 1.15. "Employer" means, individually and collectively, The
Pittston Company, any Successor Company, and any other company or business
entity sufficiently affiliated with the Sponsor for purposes of Section 501 (c)
(9) of the Code and which adopts the Trust in accordance with Section 10.6 and
is indicated as a participating employer in the Trust in Exhibit A attached
hereto, as may be updated from time to time.
Section 1.16. "Instruction" shall have the meaning ascribed to it in
Section 11.2 (a).
Section 1.17. "Liability" means any liability, loss, cost, damage,
penalty, fine, obligation or expense of any kind whatsoever (including, without
limitation, reasonable attorneys', accountants', consultants' or experts' fees
Section 1.18. "Participant" means any eligible Employee, Retiree or
other individual who has commenced participation under the Plan, for so long as
such individual is eligible under the Plan, except to the extent that the
individuals benefits under the Plan are funded by the Employer through a means
other than this Trust.
Section 1.19. "Person" means a natural person, trust, estate,
corporation of any kind or purpose, mutual company, joint-stock
company, unincorporated organization, association, partnership, joint venture,
employee organization, administrator, board, participant, beneficiary, trustee,
partner or venturer acting in an individual, fiduciary, or representative
capacity, as the context may require.
Section 1.20. "Plan" means, individually and collectively, the employee
welfare benefit plan(s) or arrangement(s) sponsored or maintained or
contributed to by the Employer pursuant to or by reference to a Collective
Bargaining Agreement and funded in whole or in part through this Trust, each one
of which is listed in Exhibit B (which may be amended from time to time by the
Sponsor), and as such plan or plans (or Collective Bargaining Agreements) may be
amended, modified, deleted, supplemented or terminated from time to time, for so
long as such plan or plans may be funded through the Trust, in whole or in part.
Section 1.21. "Qualified Investment Manager" means an investment adviser
as defined in Section 3(38) of the Act.
Section 1.22. "Retiree" means an individual who is eligible for coverage
under the Plan as a retiree.
Section 1.23. "Sponsor" means The Pittston Company or its Successor
Section 1.24. "Sponsor-Directed Account" means any Investment Account
managed by the Administrative Committee, whether because the Administrative
Committee or the Sponsor so directs or because a Qualified Investment Manager
has resigned or been discharged.
Section 1.25. "Successor Company" means any entity which acquires the
right, title and interest in and to the Employer whether pursuant to sale,
gift, assignment, final and unappealed order of a court with competent
jurisdiction, or otherwise.
Section 1.26. "Trust" means the legal entity which is created by this
Section 1.27. "Trust Fund" means the corpus or res of the Trust together
with all earnings, appreciation or additions thereto.
Section 1.28. "Trust Fund Earnings means the net of the Trust Fund's
earnings, gains, losses and expenses during the Trust Year.
Section 1.29. "Trust Year" means the period from the Effective Date to
December 31, 1999, and each succeeding twelve month period ending December 31
Section 1.30. "Trustee" means The Chase Manhattan Bank and any duly
appointed successor Trustee.
Section 2.1. Purpose. The Trust has been established to provide
Participants and their Dependents and Beneficiaries with welfare benefits as set
forth in the Plan, and to provide such other permissible payments as may be
determined from time to time, and it is intended that the benefits and payments
provided by the Plan and funded through the Trust be "life, sick, accident, or
other benefits" as that phrase is defined in Section 501 (c) (9) of the Code.
Section 2.2. Exclusive Benefit. No part of the Trust Fund shall be used
for purposes other than for (1) the exclusive benefit of Participants, their
Dependents and Beneficiaries in accordance with the provisions of the Plan and
the Trust, and (2) defraying reasonable expenses of administering the Plan and
Section 3.1. Employer Contributions. The Employer shall contribute to
the Trust such amount or amounts, if any, as the Sponsor may determine from time
to time. The Trustee shall receive, hold and be accountable for all
contributions paid to it which are reasonably acceptable to the Trustee from an
administrative standpoint; provided, however, that the Trustee shall have no
duty with respect to any contribution until it is actually received by the
Trustee and provided further that the Trustee shall have no duty to require any
contributions to be paid
to it, or to determine that the contributions received by it comply with the
Plan or with any resolution or determination of the Administrative Committee
providing therefor, and further provided that the Trustee shall have no
responsibility with respect to the operation or administration of the Plan. The
Trustee need not inquire into the source of any currency or other property
transferred to it nor into the authority or right of the transferor of such
currency or property to transfer the same to the Trustee.
Section 3.2. Irrevocability of Contributions.
(a) In General. Except as may otherwise be permitted by Section 501 (c)
(9) of the Code or Subsection (b) of this Section 3.2, all contributions made to
the Trust shall be irrevocable.
(b) Return of Contributions. In the event that the Administrative
Committee shall certify that (i) any contribution, has been made to the Trust by
a mistake of fact, or (ii) that a contribution to the Trust has been conditioned
on qualification of the Trust under Section 501(c)(9) of the Code and that such
qualification has been denied, or (iii) that a contribution to the Trust has
been conditioned upon the deductibility thereof under Section 162 or 419 of the
Code and that such deduction has been disallowed, and shall direct the return of
any such contribution, and such return of contribution does not constitute a
disqualified benefit under Section 4976 of the Code, the Trustee shall return
such contribution (or the value thereof, if less) to the Employer in accordance
with such direction, but in no event shall any such return be made other than
prior to the expiration of one year following the payment thereof in the case of
a direction under (i) or (ii) above, or one year following the disallowance of
the deduction in the case of a direction under (iii) above. The amounts of any
contribution(s) to be returned to the Employer in accordance with this Section
shall be limited to Trust Fund assets.
Trustee Powers, Rights and Duties
Section 4.1. Authority and Control. In no event shall Trust assets be
invested in stocks or obligations of the Employer and any of its affiliates,
unless such investment is permissible under the Act and other applicable law.
The rights, powers and authorities and the duties and responsibilities of the
Trustee and Qualified
Investment Manager shall be as provided in this Agreement and the Trustee and
Qualified Investment Manager shall not be a party to the Plan and shall have
only such duties with respect to the Plan as are specified in this Agreement,
and all representations and recitals in this Agreement with respect to the Plan
shall be deemed to be solely those of the Company.
Section 4.2. Establishment of Investment Accounts.
(a) The Administrative Committee, may provide Instructions directing the
Trustee to establish one or more separate investment accounts within the Trust
Fund, each separate account being hereinafter referred to as an "Investment
Account." The Trustee shall transfer to each Investment Account those assets of
the Trust Fund in accordance with such Instructions. The Administrative
Committee also may provide Instructions directing the Trustee to eliminate one
or more Investment Accounts, and the Trustee shall thereupon dispose of the
assets of any such Investment Account and reinvest the proceeds in accordance
with the Instructions of the Administrative Committee. The Trustee shall be
under no duty to question, and shall not incur any liability on account of
following, any Instruction of the Administrative Committee with respect to the
establishment or elimination of any Investment Account or the allocation or
transfer of property between or among any Investment Accounts. The Trustee shall
be under no duty to review the investment guidelines, objectives and
restrictions established, or the specific investment Instructions given, by the
Administrative Committee for any Investment Account, or to make suggestions to
the Administrative Committee in connection therewith.
(b) All interest, dividends and other income received with respect to,
and any proceeds received from the sale, exchange, or other disposition of,
property held in an investment Account shall be credited to and reinvested in
that Investment Account. All expenses of the Trust Fund which are allocable to a
particular Investment Account shall be so allocated and charged.
Section 4.3. Sponsor-Directed Investment Accounts. The Trustee shall, if
so directed by the Administrative Committee in written Instructions, segregate
all or a portion of the Trust Fund held by it into one or more separate
Investment Accounts to be known as Sponsor Directed Accounts, with respect to
which the Administrative Committee shall have the powers and duties granted to a
Qualified Investment Manager under this Agreement. The
Administrative Committee, by written Instructions to the Trustee, may at any
time relinquish its powers under this Section 4.3 and direct that a
Sponsor-Directed Account shall no longer be maintained. In addition, during any
time when there is no Qualified Investment Manager with respect to an Investment
Account (such as before an investment management agreement takes effect or after
it terminates), the Administrative Committee shall direct the investment and
reinvestment of such Investment Account. Whenever the Administrative Committee
is directing the investment and reinvestment of an Investment Account or a
Sponsor-Directed Account, the Administrative Committee shall have the powers and
duties which a Qualified Investment Manager would have under this Agreement if a
Qualified Investment Manager were then serving and the Trustee shall be
protected in relying on the Administrative Committee's Instructions without
reviewing investments or making suggestions to the same extent as it would be
protected under this Agreement if it had relied on the Instructions of a
Qualified Investment Manager.
Section 4.4. Trustee Directed Investment Accounts. If the Administrative
Committee or a Qualified Investment Manager wish the Trustee to invest cash held
in the Trust Fund or an Investment Account on a short-term basis, the
Administrative Committee or the Qualified Investment Manager (as the case may
be) may select one of the common trust funds maintained by the Trustee from time
to time for this purpose and give the Trustee instructions (including standing
instructions) to transfer cash to that common trust fund pending investment or
disbursement. Otherwise, the Trustee shall have no duty or responsibility to
direct the investment and reinvestment of the Trust Fund of any Investment
Account unless expressly agreed to in writing between the Trustee and the
Administrative Committee. In the event that the Trustee enters into such an
agreement, it shall have the powers and duties of a Qualified Investment Manager
under this Agreement with regard to that Investment Account.
Section 4.5. Certain Orders to Brokers. Except as otherwise provided in
this Agreement, the Qualified Investment Manager of an Investment Account (or
the Administrative Committee in the case of a Sponsor-Directed Account) shall
have the power and authority to be exercised in its sole discretion at any time
and from time to time, to issue orders for the purchase or sale of property
directly to a broker. Written Instructions with respect to the issuance of each
such order shall be given promptly to the Trustee by the Qualified Investment
Manager or the Administrative Committee and
the confirmation of each such order shall be confirmed to the Trustee by the
broker. Unless otherwise directed by the Administrative Committee or Qualified
Investment Manager, such Instructions shall be authority for the Trustee to pay
for property purchased or to deliver property sold as the case may be. Upon
Instructions from the Qualified Investment Manager or the Administrative
Committee, the Trustee will execute and deliver appropriate trading
authorizations, but no such authorization shall be deemed to increase the
liability or responsibility of the Trustee under this Agreement.
Section 4.6. Corporate Actions.
(a) The Trustee will follow Corporate Actions and advise the applicable
Qualified Investment Manager (or the Administrative Committee in the case of a
Sponsor-Directed Account) of those Corporate Actions of which the Trustee
receives notice at its central corporate actions department from the issuer or
from the depository in which the applicable property is maintained or notice
published in publications and reported in reporting services routinely used by
the Trustee for this purpose.
(b) If the Administrative Committee or Qualified Investment Manager fail
to provide the Trustee with timely Instructions with respect to any Corporate
Action, the Trustee will not take any action in relation to that Corporate
Action, except as otherwise agreed in writing by the Trustee and the applicable
Qualified Investment Manager (or the Administrative Committee, as the case may
be) or as may be set forth by the Trustee as a default action in the advice it
provides under Section 4.6(a) with respect to that Corporate Action.
Section 4.7. Authorized Trust Insurance Investment Powers. The Trustee,
at the direction of the Administrative Committee, is authorized to invest in,
modify, amend or replace one or more group or individual policies or contracts
issued by insurance companies to provide for all or any portion of the benefits
of the Plan or to no longer purchase such policies or contracts.
Section 4.8. Investment Powers. Except to the extent otherwise limited
by this Agreement, the Act and other applicable law, and subject to the
direction of the Administrative Committee, the Trustee shall have the following
powers and rights (i) in its direction of Investment Accounts where it has
express investment management discretion as provided in Section 4.4, and (ii)
Instructions from a Qualified Investment Manager or the Administrative
Committee, as the case may be, for all other Investment Accounts:
(a) To invest and reinvest the Trust Fund assets in notes, bonds,
mortgages, commercial paper, preferred or common stocks, mutual funds (including
mutual funds which pay the Trustee reasonable service fees), securities of the
United States or any State government, or other securities, rights, obligations
or other property, real or personal, and in savings, money markets and time
deposit accounts, including time deposit open accounts.
(b) To retain in cash or cash equivalents either all or a portion of the
Trust Fund either awaiting investment, reinvestment or to meet contemplated
payments of benefits hereunder and to deposit such funds (in savings accounts
or checking accounts) in any financial institution supervised by the United
States or a State.
(c) To invest and reinvest all or any part of the Trust Fund through the
medium of any common, collective or commingled trust fund, and during such
period of time as an investment through any such medium shall exist, the
declaration of trust of such fund shall constitute a part of this Agreement.
(d) To make payments (including transfers) from the Trust Fund to such
persons, trusts or other entities, including the Employer, in such manner, at
such times and in such amounts as the Administrative Committee shall direct
without inquiring as to whether a payee is entitled to the payment or as to
whether the payment is proper, to the extent such payment is made in good faith
without actual notice or knowledge of the impropriety of such payment. Payments
during any Trust Year shall be deemed to be made first from income earned during
such year to the extent thereof, then from prior accumulated income to the
extent thereof, then from Participant contributions to the extent thereof, and
lastly from Employer contributions. The Trustee shall have no duty or
responsibility to see to the application of distributions made from the Trust
Fund or to ascertain whether any such directions comply with the Plan, or to
ascertain that the disposition of distributions by the Employer or any agent of
the Employer complies with the Plan.
(e) Except with respect to any claim or demand arising under a Plan, to
compromise, contest, arbitrate, settle or abandon claims and demands.
(f) To begin, maintain or defend any litigation necessary or appropriate
in connection with the investment, reinvestment and administration of the Trust,
in addition to the right to a judicial settlement of accounts.
(g) To make, execute, acknowledge and deliver any and all instruments
that may be necessary or appropriate to carry out the powers herein granted.
(h) To have all rights of an individual owner, including the power to
give proxies to vote stocks and other voting securities, to join in or oppose
(alone or jointly with others) voting trusts, mergers, consolidations,
foreclosures, reorganizations, recapitalizations or liquidations, and to
exercise or sell stock subscription or conversion rights.
(i) To purchase and otherwise deal with insurance policies pursuant to
the provisions of Section 4.7.
(j) To make remittances of premiums, contributions or other payments to
insurers, trust funds, governmental funds or other accounts with respect to
insurance policies or other welfare benefit arrangements and to receive premium
refunds, experience-rated refunds, dividends or other adjustments related
(k) To acquire and hold qualifying employer securities and qualifying
employer real property, as such investments are defined in Section 407(d) of
(l) To sell for cash or on credit, to grant options, convert, redeem,
exchange for other property, to enter into standby agreements for future
investment, either with or without a standby fee, or otherwise to dispose of any
property at any time held by it.
(m) To trade in financial options and futures, (including index options
and options on futures); to enter into repurchase agreements, reverse repurchase
agreements, swaps, caps, floors, straddles, collars and other derivative
arrangements; and to execute in connection therewith such account agreements and
agreements in such form and upon such terms as the Qualified Investment Manager
or the Administrative Committee shall direct.
(n) To loan pursuant to separate agreement as may be agreed upon any
securities to brokers or dealers and to secure the same in any manner, and
during the term of any such loan to permit the loaned securities to be
transferred into the name of and voted by the borrower or others.
(o) To purchase, enter, sell, hold, and generally deal in any manner in
and with contracts for the immediate or future delivery of financial instruments
of any issuer or of any other property; to grant, purchase, sell, exercise,
permit to expire, permit to be held in escrow, and otherwise to acquire, dispose
of, hold and generally deal in any manner with and in all forms of options in
any combination; and, in connection with its exercise of the powers granted in
this Agreement, to deposit any currency or property as collateral with any
broker-dealer or other Person, to permit property to be held by or in the name
of others or in transferable form, to retain any form of property received as a
result of the exercise of any of the foregoing powers whether or not investment
in such property is otherwise authorized under this Agreement and to hold and
administer any currency or property with respect to which the foregoing powers
have or may be exercised, including any securities or collateral acquired by it
or in any property received as a result of its exercise of such powers, as a
part of the account subject to the foregoing powers, or in any sub-account,
which property may be invested in property of different types than the property
otherwise held in the account.
(p) To borrow money on a secured or unsecured basis and to enter into,
execute, and deliver notes, agreements, mortgages, and other instruments in that
(q) To employ suitable agents and counsel and to pay their reasonable
and proper expenses and compensation.
(r) To form corporations and to create trusts to hold title to any
currency or property, all upon such terms and conditions as may be deemed
advisable by the Qualified Investment Manager or Administrative Committee.
(s) To invest with the Trustee (i) in any type of interest bearing
investments (including but not limited to savings accounts, money market
accounts, certificates of deposit and repurchase
agreements) and (ii) in non-interest bearing accounts (including, but not
limited to checking accounts).
(t) To appoint ancillary trustees to hold any portion of the assets of
the trust and to pay their reasonable expenses and compensation.
(u) To do and perform all acts with respect to the Trust Fund which the
Trustee could do or perform if it, as an individual, were the owner thereof; the
enumeration of particular powers herein shall not be construed as limiting the
general powers intended to be granted to the Trustee.
Section 4.9. Administrative Powers of the Trustee.
(a) Notwithstanding the appointment of a Qualified Investment Manager,
the Trustee shall have the following powers and authority, to be exercised with
respect to the Trust Fund:
(i) To deposit securities with a corporate depository. The
certificates representing, securities, including those in bearer form,
may be held in bulk form with, and may be merged into, certificates of
the same class of the same issuer which constitute assets of other
accounts or owners, without certification as to the ownership
attached. Utilization of a book-entry system may be made for the
transfer or pledge of securities held by the Trustee or by a corporate
depository. The Trustee shall at all times, however, maintain a
separate and distinct record of any securities owned by the Trust
(ii) To participate in and use the Federal Book-Entry Account System,
a service provided by the Federal Reserve Bank for its member banks
for deposit of Treasury securities.
(iii) To hold securities or other property in.its name as Trustee or
in the name of its nominee or nominees, or in such other form as it
determines best, with or without disclosing the Trust relationship and
to execute such documents as are necessary to accomplish the
foregoing; provided, however, that (i) the records of the Trustee
shall indicate the actual ownership of such securities or other
property, and (ii) except as authorized by regulations promulgated by
the Secretary of the United States Department of Labor, the Trustee
shall not maintain the indicia of ownership of any
assets of the Trust Fund outside the jurisdiction of the District
Courts of the United States.
(iv) To retain any funds or property subject to any dispute or to
decline to make payment or delivery thereof until final adjudication
is made by a court of competent jurisdiction or decision by the
National Labor Relations Board or arbiter acting under a Collective
Bargaining Agreement except in the event the Administrative Committee
(v) To employ suitable agents and counsel, and subject to the approval
of the Administrative Committee which approval shall not be
unreasonably withheld to pay their reasonable expenses and
compensation out of the Trust Fund.
(vi) To permit overdrafts in any Investment Account in connection with
the settlement of investment transactions relating to, or the
distribution of funds from, the Trust Fund, (and the Qualified
Investment Manager, if any, of such Investment Account shall be deemed
to have requested the Trustee to permit such overdraft under the terms
and conditions announced by the Trustee from time to time for
overdrafts); to repay any such overdraft out of the Trust Fund; to
permit the party extending any such overdraft (including the Trustee
in its corporate capacity) to set the overdraft off against any cash
balances in the Trust Fund; and to pay reasonable interest to the
party extending the overdraft to the extent permitted under Applicable
(vii) To reverse any erroneous or provisional credit entries to the
Trust Fund with respect to any income or security transaction
settlement proceeds, retroactively to the date upon which the correct
entry or no entry should have been made.
(viii) To perform any and all acts which in its judgment are necessary
and appropriate for the proper and advantageous management, investment
and distribution of the Trust Fund in accordance with the Plan and the
(ix) Generally to do all ministerial acts, whether or not expressly
authorized, which the Trustee may deem necessary or desirable in
carrying out its duties under this Agreement.
(b) Except as otherwise required by the Act, the Trustee shall not be
responsible for the acts or omissions of any agent other than an affiliate of
the Trustee selected by it to provide pricing services that the Trustee does not
customarily provide itself, provided that the Trustee satisfies its standard of
care under Section 4.10 of this Agreement with respect to selecting the agent
and maintaining the agency relationship.
Section 4.10. Fiduciary Obligations.
(a) Subject to the provisions of Article III, the Trustee shall
discharge its duties hereunder in good faith and solely in the interest of the
Participants, Dependents and their Beneficiaries and --
(i) for the exclusive purposes of:
(A) providing benefits to Participants, Dependents and their
(B) defraying reasonable expenses of administering the Trust;
(ii) with the care, skill, prudence and diligence under the
circumstances then prevailing that a prudent man acting in a like
capacity and familiar with such matters would use in the conduct of an
enterprise of like character and with like aims.
(b) Except as otherwise provided by the Act, under no circumstances
shall the Trustee incur liability to any Person for any indirect, consequential
or special damages (including, without limitation, lost profits) of any form,
whether or not foreseeable and regardless of the form of the action in which
such a claim may be brought, with respect to the Trust or its role as Trustee.
Section 4.11. Indemnification of the Sponsor; Contribution.
(a) Subject to Section 4.10(b), the Trustee shall indemnify and save
harmless the Sponsor, Administrative Committee, Employers, their affiliates, and
their officers and employees for and from any Liability to the extent arising
(i) out of the Trustee's failure to perform its duties under the Agreement in a
manner free of negligence, recklessness or intentional disregard of its
responsibilities hereunder, or (ii) by reason of any breach of any statutory or
other duty owed to the Sponsor, Administrative
Committee or the Employers by the Trustee under this Agreement except to the
extent the Sponsor, Administrative Committee or the Employers may otherwise be
considered liable under Section 405(a) of the Act for the Trustee's breach,
provided that the Trustee's compliance in good faith with any Instruction on
which it is entitled to rely under this Agreement shall not be considered to be
negligent or reckless conduct under clause (i).
(b) The Sponsor, Administrative Committee, Employers, their affiliates,
and their officers and employees may bring action against the Trustee to
contribute to the satisfaction of any liability to the extent that the liability
(i) is not subject to indemnification under any of Subsection (a), Section
5.12, or Section 5.13 and (ii) is caused by the culpable conduct of the Trustee
or its agents.
(c) The foregoing rights of indemnification and contribution shall not
limit any rights or remedies that may be available to the Sponsor,
Administrative Committee, Employers or their affiliates under Applicable Law.
Section 4.12. Compensation and Expenses. The Trustee shall be entitled
to reasonable compensation for its services hereunder as may be agreed upon
between the Trustee and the Sponsor from time to time, plus reimbursement of
reasonable expenses actually incurred. Such compensation and all reasonable and
proper expenses of administration of the Trust, including counsel fees, shall be
withdrawn by the Trustee out of the Trust Fund unless paid by the Sponsor, but
such compensation and expenses shall be paid by the Sponsor if the same cannot
by operation of law be withdrawn from the Trust Fund. All payments under this
Article 4 may be made from the Trust Fund in the event that the Sponsor has not
paid same or notified Trustee in writing of intent to pay by the billing period
subsequent to the charge without approval of or Instructions from the
Administrative Committee. The Trustee shall be entitled, as an additional part
of its compensation under this Agreement, to the use of funds which may be held
in demand deposit or other noninterest bearing accounts established for the
payment of benefits or Plan disbursements or which are otherwise maintained for
purposes of administering the Trust Fund which relates solely to outstanding
checks and drafts.
Section 4.13. Commingled Trust Fund. The fact that separate records may
be maintained by the Administrative Committee or any
other person for each Participant, Dependent or Beneficiary, or group thereof,
shall not be deemed to segregate for or give to such Participant, Dependent or
Beneficiary, or group thereof, any direct interest in any specific assets of the
Section 4.14. Diversification; other Funding Media. In the event that
assets of the Plan are held in any funding medium other than the Trust Fund or
are under the control or direction of a Qualified Investment Manager pursuant to
Section 5.11 or are otherwise funds as to which the Trustee does not retain sole
investment authority, the Administrative Committee shall be solely responsible
for the manner in which the investments held in all of the funds and funding
media of the Plan, including those under the control or direction of a Qualified
Investment Manager, any trust other than the Trust, or any insurance contract or
policy, considered collectively, shall be diversified. The Administrative
Committee shall evidence its acceptance of such responsibility for
diversification and shall specify such rules or guidelines for the manner of
investment of any portion of the Trust Fund as to which the Trustee assumes
investment authority as the Administrative Committee shall determine to be
necessary or appropriate in order to meet the diversification standards of the
Act, as the same shall affect such portion of the Trust Fund, in a written
instrument filed with the Trustee. The Trustee shall retain such duty of
diversification within any particular classification of property or other
guidelines specified by the Administrative Committee with respect to such
portion of the Trust Fund as shall be set forth in said instrument. The
acceptance of said rules and guidelines specified by the Administrative
Committee referred to in this section shall be subject to the approval of the
Trustee but such approval shall not increase the responsibility or liability of
the Trustee under this Agreement or otherwise. Without limiting the generality
of the foregoing, it is agreed that the Trustee shall have no liability or
responsibility for the diversification of the investments of the Plan (i) held
in any such portion of the Trust Fund as to which the Trustee retains investment
authority, except to the extent provided in said instrument filed with the
Trustee, (ii) held in any portion of the Trust Fund under the control or
direction of a Qualified Investment Manager or any funding medium of the Plan
other than the Trust Fund, or (iii) held in all funding media of the Plan,
considered collectively, if any portion of the Plan is held in any funding
medium other than the Trust Fund or is under the control or direction of a
Qualified Investment Manager.
Section 4.15. Change of Trustee.
(a) Resignation. A Trustee may resign at any time by giving thirty (30)
days advance written notice, by registered or certified mail, to the
Administrative Committee which may, in writing, waive the thirty (30) day notice
(b) Removal of Trustee. The Administrative Committee may remove a
Trustee by giving thirty (30) days advance written notice by registered or
certified mail to the Trustee and also notifying it of the identity of the
successor Trustee and of the successor Trustee's acceptance of the trusteeship.
The Trustee may, in writing, waive the thirty (30) day notice requirement.
(c) Duties of Resigning or Removed Trustee and of Successor Trustee. If
a Trustee resigns or is removed, it shall promptly transfer and deliver the
assets of the Trust Fund to the successor Trustee (in the event such successor
Trustee is a bank or trust company) or, in the event the successor Trustee is
not a bank or trust company, to a custodian such as a bank, trust company,
brokerage company or other financial institution acceptable to the Trustee
(which acceptability shall not be unreasonably withheld) designated by the
successor Trustee. Within ninety (90) days, the resigned or removed Trustee
shall furnish to the Sponsor and the Administrative Committee an accounting of
its administration of the Trust from the date of its last accounting. Each
successor Trustee shall succeed to the title to the Trust Fund vested in its
predecessor without the signing or filing of any further instrument, but any
resigning or removed Trustee shall execute all documents and do all acts
necessary to vest such title of record in any successor Trustee. Each successor
shall have all the powers, rights and duties conferred by this Trust as if
originally named Trustee. No successor Trustee shall be personally liable for
any act or failure to act of a predecessor Trustee.
(d) Vacancy. If at any time there is no person or entity serving as
Trustee, then the Administrative Committee shall serve as Trustee. The
Administrative Committee may appoint a successor trustee in its discretion.
(e) Notification of Parties. Copies of all instruments involving the
resignation, removal, appointment or addition of a Trustee shall be delivered to
the Administrative Committee and to every other person serving as Trustee.
Section 4.16. Settlement of Securities Transactions. Settlement of
purchases and sales of property may be conducted in accordance with prevailing
standards of the market in which the transaction occurs. The risk of
non-receipt of payment or other consideration shall be the Trust's and the
Trustee shall have no liability for the failure of the Trust Fund to receive
the same. All credits to the Trust Fund of the anticipated proceeds of sales
and redemptions of property and of anticipated income from property shall be
conditional upon receipt by the Trustee of final payment and may be reversed to
the extent final payment is not received.
Section 4.17. Taxes. The Trustee shall assume, until advised to the
contrary, that the Trust is described under Section 501 (c) (9) of the Code, is
exempt from Federal income tax under Section 501 (a) thereof, and is exempt from
state and local income tax. Upon the direction of the Sponsor or the
Administrative Committee, to pay any estate, inheritance, income or other tax,
or estimated tax, charge or assessment attributable to any benefit, transaction,
investment or event which, in the Sponsor's or the Administrative Committee's
opinion, shall or may be required to be paid by the Trustee as a result of such
benefit, transaction, investment or event; and to require, before making any
payment, such release or other document from any taxing authority or such
indemnity from the intended payee as it deems necessary for its protection.
Further, to pay any tax, charge or assessment made upon the Trust subsequent to
giving the Sponsor notice of such tax, charge or assessment unless (i) the
Sponsor (A) directs the Trustee not to pay such tax, charge or assessment, and
(B) agrees to indemnify the Trustee for legal expenses incurred by the Trustee
as a result of such nonpayment; or (ii) an unappealable final determination has
been issued with respect to the tax, charge or assessment. The Administrative
Committee shall timely file all Federal, state and local tax and information
returns relating to the Plan and the Trust.
Section 5.1. General Rights, Powers and Duties of the Administrative
Committee. The Administrative Committee shall be responsible for the management,
operation and administration of the Plan with respect to the Trust. In addition
to any powers, rights and duties set forth elsewhere in the Trust, it shall:
(a) adopt, such rules, regulations and conditions, consistent with the
provisions of the Trust and obligations of applicable law, as necessary or
advisable to effectuate its duties, rights or responsibilities under the Plan or
(b) maintain records adequate to prepare reports, returns and other
information required by law;
(c) construe and interpret provisions of the Plan to resolve all
questions arising with regard to its duties, rights or responsibilities under
the Plan and such construction and interpretation shall be binding on all
parties with respect to matters arising under the Plan;
(d) direct the Trustee as to payments from the Trust and the making of
any other payments (including transfers) from the Trust Fund which it may deem
necessary or appropriate for the proper administration of the Plan;
(e) employ or retain agents, attorneys, actuaries, accountants,
consultants or other persons (who also may be employed by or represent the
Employer or the Trustee) necessary to effectuate its duties, rights or
responsibilities under the Plan or the Trust; and
(f) apply to the Internal Revenue Service for recognition of
qualification or requalification under Code Section 501(c)(9) for the Trust.
Section 5.2. Information to be Furnished to Administrative Committee.
The Employer shall furnish the Administrative Committee, to the extent permitted
by law and requested by the Administrative Committee, such payroll information
and data with respect to its employees that the Administrative Committee may
require in connection with the administration of the Plan. Such information
shall be limited in nature to such matters as name, classification, social
security number, amount of compensation, number of hours of service and years
of service and any other information necessary to establish eligibility to
participate or entitlement to benefits. Participants, Dependents, Beneficiaries
and other recipients shall, as a pre-condition to receipt of a payment from the
Trust, furnish to the Administrative Committee (or to the Employer acting as the
agent of the Administrative Committee) such evidence, data or information and
execute such documents or provide such receipts as the Administrative Committee
reasonably requests in order to carry out its duties.
Section 5.3. Fiduciary Obligations. Subject to the provisions of Article
III, the Administrative Committee shall discharge their duties hereunder solely
in the interest of the Participants, Dependents and their Beneficiaries and --
(a) for the exclusive purposes of
(i) providing benefits to Participants, Dependents and their
(ii) defraying reasonable expenses of administering the Plan and
the Trust; and
(b) With the care, skill, prudence and diligence under the circumstances
then prevailing that a prudent man acting in a like capacity and familiar with
such matters would use in the conduct of an enterprise of like character and
with like aims.
(c) The Administrative Committee shall be responsible for ensuring that
any payment directed under this Article by Instructions conforms to the
provisions of the Plan, this Agreement, and the provisions of the Act. Subject
to Article XI, each Instruction of the Administrative Committee shall be in
writing and shall be deemed to include a certification that any payment or other
distribution directed thereby is one which the Administrative Committee is
authorized to direct, and the Trustee may conclusively rely on such
certification without further investigation unless the Trustee has actual
knowledge to the contrary. The Trustee shall not incur any liability or other
damage on account of any payments or other distributions made by it in
accordance with the written Instructions of the Administrative Committee. The
Sponsor may elect to appoint a third party agent for benefit payments upon
notice to the Trustee, in which event, the Trustee's sole duty shall be to make
payments to, or receive amounts back from, such agent as may be directed by the
Administrative Committee or its delegate in Instructions.
Section 5.4. Uniform Application. The Administrative Committee shall
apply the provisions and any rules, regulations and conditions adopted by it in
a uniform and nondiscriminatory manner in accordance with Sections 505 and 501
(c) (9) of the Code, so that all persons similarly situated shall be similarly
treated. In addition, all rules, regulations and conditions adopted by it must
be reasonably related to the type or amount of benefit or other
payment provided under the Trust and must be objectively selected and
administered so as not to provide disproportionate benefits in favor of
officers, shareholders or highly compensated employees of the Employer or highly
compensated individuals (in accordance with Sections 501 (c) (9) and 505 of the
Section 5.5. Allocation and Delegation of Certain Fiduciary Duties.
(a) The Board may allocate any of its rights, powers and duties
hereunder to the Administrative Committee. Any such allocation shall be in
writing and shall set forth the particular rights, powers and duties being
allocated. The Board may revoke any allocation made pursuant to this Subsection
by written notification to the Administrative Committee.
(b) The Board and the Administrative Committee shall have the authority
to delegate any of their rights, powers and duties hereunder and may revoke any
delegation made pursuant to this Subsection by written notification to the
person(s) or entity(ies) to whom the delegation has been made.
Section 5.6. Committee Action. All actions of the Administrative
Committee shall be taken pursuant to the decision of a majority of the members
then serving on such Committee. Any person serving on a Committee may execute
any document in the name of and on behalf of such Committee and otherwise has
the full power and authority to act on behalf of a majority of the members
serving on the Committee.
Section 5.7. Compensation and Expenses. Persons serving on the
Administrative Committee shall be entitled to reasonable compensation for their
services hereunder and reimbursement of reasonable expenses; provided, however,
that a person serving on the Administrative Committee who is an Employee or a
party-in-interest (as defined in the Act) with respect to the Employer shall not
be entitled to any compensation for his services on the Administrative Committee
from the Trust Fund, except for the reimbursement of reasonable expenses
actually incurred. Such compensation and expenses shall be paid from the Trust
Fund, subject to prior payment or reimbursement by the Employer in its
discretion, and provided that, to the extent Trust Fund assets are inadequate,
the Employer shall pay such compensation and expenses.
Section 5.8. Indemnification of the Administrative Committee
by the Employer. To the extent permitted by law and the Sponsor's Articles of
Incorporation and By-laws, the Sponsor hereby agrees to indemnify any person
serving on the Administrative Committee who is also an Employee of the Employer
for, and hold him harmless against, any and all liabilities, losses, costs or
expenses (including legal fees and expenses) of whatever nature which may be
imposed on, incurred by, or against him at any time by reason of his service
under the Plan or the Trust except to the extent it is a result of action or
inaction by the person which is determined to be criminal or grossly negligent.
Payments of any indemnity, expenses or fees under this Section shall be made
solely from assets of the Employer and shall not be made directly or indirectly
from Trust Fund assets.
Section 5.9. Limitation of Responsibilities and of Liabilities. The
functions of any attorney, actuary or accountant engaged pursuant to Section 5.1
(e) or otherwise with respect to the Plan or the Trust shall be limited to the
specific services and duties for which they are engaged, and such persons shall
have no other duties or obligations under the Trust. Such persons shall exercise
no discretionary authority or discretionary control respecting management of the
Plan or the Trust and shall exercise no authority or control respecting
management or disposition of the assets of the Trust. Any person serving on the
Administrative Committee who is an Employee shall be free from all liability for
his acts and conduct in the administration of the Trust or management of Trust
Fund assets except for acts of willful misconduct; provided, however, that the
foregoing shall not relieve him from any responsibility or liability for any
responsibility, obligation or duty he may have pursuant to the Act or other
Section 5.10. Rebates and Adjustments. Notwithstanding any provisions of
this Trust to the contrary, the Administrative Committee may, in its discretion
and to the extent permitted by the Act and Section 501 (c) (9) of the Code and
as would not result in the imposition of tax under Section 4976 of the Code,
direct the Trustee to return excess insurance premiums or payments to the person
(including the Employer) whose contribution was applied to such premium or
payments and to make administrative adjustments strictly incidental to the
providing of benefits to Participants. In addition, in the event a benefit is
provided or a disbursement is made from the Trust Fund as a result of a
directive from the Administrative Committee and it is determined by the Sponsor
that such benefit should not have been provided or disbursement made, the
Sponsor shall make a contribution to reimburse the Trust to the
extent such contribution is deductible for income tax purposes.
Section 5.11. Appointment of Qualified Investment Manager. The
Administrative committee may appoint a Qualified Investment Manager to manage,
invest and reinvest any part or all of the assets of the Trust Fund in the same
manner and to the same extent as the Trustee is empowered pursuant to Article
IV. Such appointment shall be in writing, signed by the Administrative Committee
and the Qualified Investment Manager and shall set forth the rights, powers and
duties of the Qualified Investment Manager, including acknowledging that the
Qualified Investment Manager is a fiduciary with respect to the Trust. Assets of
the Trust Fund managed or invested by a Qualified Investment Manager shall be
segregated into one or more "Investment Accounts." The appointment of a
Qualified Investment Manager may be revoked by the Administrative Committee or
resigned by the Qualified Investment Manager at any time, by written
notification to the other party to the appointment. Written notice of the
appointment, removal or resignation of a Qualified Investment Manager shall be
given to the Trustee. As long as such Qualified Investment Manager is acting,
such Qualified Investment Manager shall have, to the extent set forth in the
written appointment, full authority to direct the Trustee with respect to the
acquisition, retention, management and disposition of the assets from time to
time comprising the Investment Accounts being managed by such Qualified
Investment Manager and the voting of the proxies thereon, and the Trustee shall
have no duty or obligation to review the assets from time to time comprising
such Investment Accounts, to make any recommendations with respect to the
investment, reinvestment or retention thereof, nor with respect to the voting of
proxies thereon, nor to determine whether any direction from such Qualified
Investment Manager is proper or within the terms of this Agreement. The
Administrative Committee shall be responsible for ascertaining that, while each
Qualified Investment Manager is acting in that capacity, that Qualified
Investment Manager satisfies the requirements of Section 3(38) of the Act, or
any successor thereto. The Administrative Committee shall furnish the Trustee
with written notice of the appointment of each Qualified Investment Manager
hereunder, and of the termination of any such appointment. Such notice shall
specify the assets which shall constitute the Investment Account. The Trustee
shall be fully protected in relying upon the effectiveness of such appointment
and the Qualified Investment Manager's continuing satisfaction of the
requirements set forth above until it receives written notice from the
Administrative Committee to the contrary. The Trustee shall
conclusively presume that each Qualified Investment Manager, under its
investment management agreement, is entitled to act, in directing the investment
and reinvestment of the Investment Account for which it is responsible, in its
sole and independent discretion and without limitation. The Trustee shall have
no responsibility with respect to the formulation of or compliance with any
investment or diversification policies established with respect to any
Investment Account unless the Trustee or an affiliate of the Trustee is the
Qualified Investment Manager of the Investment Account.
Section 5.12. Indemnification of Trustee and Limitation of Trustee
Responsibility Regarding Qualified Investment Manager. The Trustee shall have no
liability or responsibility to the Employer or any Participant or Beneficiary of
the Trust for acting without question on the direction of, or for failure to
act in the absence of directions from, a Qualified Investment Manager for any
Investment Manager Account. The Trustee may assume that any Investment Manager
Account previously established and the appointment of any Qualified Investment
Manager for that account continues in force until receipt of written notice to
the contrary. Pending receipt of directions from the Qualified Investment
Manager, any cash received by the Trustee from time to time for any Investment
Manager Account may be retained by the Trustee, in its discretion, in cash,
without any liability for interest. In addition, the Employer agrees to
indemnify the Trustee for, and hold it harmless against, any liability or
expense in connection with or arising out of (a) any action taken or omitted or
any investment or disbursement of any part of the Trust Fund made by the Trustee
at the direction of the Qualified Investment Manager or any inaction with
respect to the Trust Fund in the absence of directions from the Qualified
Investment Manger, or (b) any action taken by the Trustee pursuant to a
notification of an order to purchase or sell securities issued by a Qualified
Investment Manager directly to a broker or dealer under a power of attorney.
Section 5.13. Further Indemnification of the Trustee; Contribution.
(a) The Sponsor shall indemnify and save harmless the Trustee, its
affiliates, and their officers and employees for and from any Liability
arising (i) out of any matter as to which the Trustee is directed, or this
Agreement provides that the Trustee is protected, not liable, or not
responsible, or as to which the Trustee has acted in accordance with this
Agreement and the Act, or
(ii) by reason of any breach of any statutory or other duty owed to the Plan by
the Sponsor, the Administrative Committee, any Qualified Investment Manager or
any delegate of any of them, except to the extent the Trustee may otherwise be
considered liable under Section 405 (a) of the Act for that other person's
breach in the case where (i) the Trustee actively participated in or concealed
the other person's breach, or (ii) appropriate personnel of the Trustee knew of
the other person's breach and failed to notify the Administrative Committee of
such breach (except in the case where such breach is alleged to have been
committed by the Administrative Committee, in which case such notification must
have been to the Board).
(b) The Trustee, its affiliates, and their officers, agents and
employees may bring action against the Sponsor to contribute to the satisfaction
of any liability to the extent that the liability (i) is not subject to
indemnification under Subsection (a) and (ii) is caused by the culpable conduct
of the Sponsor, the Administrative Committee, or their respective agents.
(c) The foregoing rights of indemnification and contribution shall not
limit any rights or remedies that may be available to the Trustee under
Accounting and Recordkeeping
Section 6.1. Accounting Records. The Administrative Committee and the
Trustee shall each maintain or cause to be maintained such accounting records as
they each may deem appropriate for purposes of carrying out their
responsibilities under the Trust.
Section 6.2. Separate Funds. The Trust Fund may be subdivided into
separate funds, in accordance with written directions of the Administrative
Section 6.3. Valuation of Trust Fund.
(a) The Trustee shall value the Trust Fund as of the close of business
on the last day of each calendar quarter or such other date as may be agreed
between the Trustee and the Sponsor (such date hereafter referred to as the
(b) The Trustee shall determine the fair market value or fair value of
property held in the Trust Fund based upon one or more of the following:
information and financial publications of general circulation, statistical and
valuation services, records of security exchanges, appraisals by qualified
Persons, transactions and bona fide offers in assets of the type in question,
valuations provided by the Qualified Investment Manager, and other information
customarily used in the valuation of property. Units or shares in registered
investment companies, limited partnerships, limited liability companies, or
other funds (each a "Fund") shall be their net asset value or other unit or
share value as announced by the Fund or its operator. A Qualified Investment
Manager shall certify, at the request of the Trustee, the value of any property
held in any Investment Account managed by such Qualified Investment Manager, and
such certification shall be regarded as an Instruction with regard to such
valuation. The Trustee shall be entitled to rely upon such valuation for all
purposes under this Agreement.
(c) Valuations of property reasonably deemed by the Trustee to be
commodity interests or over-the-counter options or derivative instruments shall
be valued at their last prior sales prices on the principal board of trade or
the contracts market in which dealings are made or by quotations from the
contraparty bank or party. The Sponsor acknowledges that values of derivative
instruments are indicative values only based on market levels on the date, or
upon change in rates, so indicated. These valuations do not indicate the actual
terms at which derivatives could be liquidated or unwound or the calculation or
estimate of an amount that would be payable following the designation of an
early termination date under any applicable agreement. Valuations of derivatives
may be derived from proprietary models (including proprietary models developed
by the dealer from which a given derivative was purchased) based upon estimates
about relevant future market conditions. Valuations based on other models or
different assumptions may yield different results. The Trustee expressly
disclaims any responsibility for the accuracy of the models or estimates used in
deriving the valuations.
Section 6.4. Specific Accounts. At no time shall any segregated account
or separate fund be considered a savings account or investment or asset of any
particular Participant, Dependent or Beneficiary or group thereof, and no
Participant, Dependent or Beneficiary or group thereof shall have any right to
any particular asset which the Investment Committee or the Trustee may have
allocated to any segregated account or separate fund for accounting purposes.
Section 6.5. Audit of Accounts. If required by the Act or other
applicable law or deemed appropriate by the Administrative Committee, the
Sponsor shall cause an audit of the Trust to be made at least once each year by
an independent qualified public accountant who shall be formally appointed by
and responsible only to the Sponsor. A copy of the accountant's audit report of
each such audit of the Trust shall be available at the office of the Sponsor
during all regular business hours for inspection. The Sponsor may make a
reasonable charge for the cost of duplication of such report. All accounts,
books and records of the Trustee shall be open for inspection and audit at all
reasonable times by any person designated by the Sponsor.
Section 6.6. Regulatory Reporting. The Sponsor shall have authority over
all reports and accountings which governmental regulatory bodies may require to
be filed, and it shall have ultimate responsibility for such filings. This shall
include, but not be limited to, all reports required by the Act. It shall be the
Administrative Committee's and Trustee's duty and responsibility to provide the
Sponsor with information within the scope of their respective duties which is
necessary to prepare such required reports and accountings.
Section 6.7. Retention of Records. The Trustee must maintain
correspondence or other files, including but not limited to, correspondence of
transmittal for checks, statements and account analyses, and correspondence
dealing with terminated or deceased participants for a period of six (6) years;
after which the Trustee must transfer such records to the Sponsor as shall be
agreed upon in writing signed by the Trustee and Sponsor. During this six-year
period, the Sponsor shall have the right to request that copies of any such
correspondence or files be delivered to it.
Section 6.8. Computerized Access to Trust Fund Records. The Sponsor, the
Administrative Committee, or a Qualified Investment Manager may request the
Trustee to provide them with on-line access to certain current records and
reports relating to the Trust Fund or certain Investment Accounts. If the
Trustee agrees to do so, the records and unaudited reports accessible on-line
will be unaudited and may not be accurate due to inaccurate pricing of property,
delays in updating the accounting records of the Trust Fund and other causes.
The Trustee will not be liable for any loss
or damage arising out of the inaccuracy of any such records or unaudited reports
Section 6.9. Trust Accountings.
(a) Within sixty days after the close of each month and at more frequent
intervals if agreed to by the parties hereto, the Trustee shall render to the
Sponsor a written statement and account showing in reasonable summary the
investments, receipts, disbursements, and other transactions engaged in during
the preceding month or period, and setting forth the assets and liabilities of
the Trust. Within sixty days after the close of each fiscal year, and within
sixty days after the removal or resignation of the Trustee as provided
hereunder, the Trustee shall render to the Administrative Committee a similar
statement and account for that fiscal year. The Administrative Committee shall
promptly review each statement and account and advise the Trustee in writing of
any errors or omissions reflected therein. Unless the Administrative Committee
shall have filed with the Trustee written exceptions or objections to the annual
statement and account within the later of one hundred eighty (180) days after
receipt thereof or the filing of the Form 5500 Plan report for a Plan Year to
which the annual statement and account may relate, the Sponsor shall be deemed
to have approved such statement and account, and in such case or upon written
approval by the Administrative Committee of the annual statement and account,
the Trustee shall be released and discharged with respect to all matters and
things reflected in the annual statement and account to the full extent
permissible under Applicable Law as though it had been settled by a decree of a
court of competent jurisdiction in an action or proceeding in which the
Administrative Committee, the Sponsor, all other necessary parties and all
Persons having any beneficial interest in the Trust Fund were parties.
(b) Nothing contained in this Agreement or in the Plan shall deprive the
Trustee of the right to have a judicial settlement of its account at its own
expense. In any proceeding for a judicial settlement of the Trustee's accounts
or for instructions in connection with the Trust, the only necessary parties
thereto in addition to the Trustee shall be the Administrative Committee and the
Sponsor, and no Participant or other Person having or claiming any interest in
the Trust Fund shall be entitled to any notice or service of process (except as
required by Applicable Law). Any judgment, decision or award entered in any such
proceeding or action shall be conclusive upon all interested Persons.
Section 7.1. Benefits in General. The Trust shall be applied to provide
Participants, Dependents or Beneficiaries with "life, sick, accident, or other
benefits," as that phrase is defined in Section 501(c)(9) of the Code. The Trust
shall provide such benefits directly or indirectly, such as by payment or
reimbursement to any other party, including the Employer, or make payments to
any third party, such as an insurance company, HMO, Taft-Hartley Trust,
governmental fund, trust or other account that provides such benefits pursuant
to or by reference to the Collective Bargaining Agreements or with respect to
persons who are or were covered by Collective Bargaining Agreements. For
purposes of directing payments from the Trust, the Employer shall have sole
responsibility for determining the life, sick, accident or other benefits that
are provided under or by reference to the Collective Bargaining Agreements or
with respect to persons who are or were covered by Collective Bargaining
Agreements. The Trustee shall have no responsibility or duty to interpret the
Collective Bargaining Agreements or otherwise determine the benefits payable
pursuant to or by reference to the Collective Bargaining Agreements.
Section 7.2. Particular Benefit Programs. The Employer may utilize the
Trust to provide payments with respect to different benefit programs which
provide different types or amounts of benefits to different groups of
Participants (or their Dependents or designated Beneficiaries); provided,
however, that such benefit programs shall not violate, either in design or
operation, Section 5.5 of this Agreement or Sections 501 (c) (9), 505 or 4976
of the Code. In addition, the Employer may utilize the Trust to provide payments
with respect to benefit plans or programs which provide benefits to employees
who have terminated participation; such programs may, for example, provide
benefits to (1) Employees who have gone on leave of absence or have terminated
employment by reason of disability, layoff or otherwise, (2) Dependents of
Employees; or (3) Dependents of deceased Employees. In the event a particular
benefit plan(s) or program(s) clearly provides, in writing, for benefits to
persons who are not Participants, those persons shall be provided with a benefit
only pursuant to the terms of and under that particular benefit plan(s) or
Section 7.3. Insurance Policies, Contracts and Providers. Nothing
contained in nor promulgated or applied under the authority of the Trust shall
be interpreted as relieving any insurer, health service provider, administrator,
Taft-Hartley Trust, governmental fund, trust, account or other obligor of its
obligation to provide benefits under any contract issued by, promise made by or
duty assumed by the insurer, health service provider, administrator,
Taft-Hartley Trust, governmental fund, trust, account or other obligor.
Section 7.4. Limitation on Benefits. No Employee, Retiree, Participant,
Dependent, Beneficiary or other person or entity shall have the right, privilege
or option to receive instead of the payments provided by the Trust or the Plan
(a) any part of the contributions made to the Trust by the Employer or any
Participants, (b) a cash consideration from the Trust either upon termination of
benefits provided by the Plan or payment provided by the Trust or upon such
Participant's termination of coverage under the Plan, either voluntarily or
through severance of employment or otherwise, or (c) the cash surrender value of
any insurance policy or benefit contract in lieu of the benefits provided in
said policy or contract.
Section 7.5. Benefit Programs. It is intended that the Trust be used to
fund, if and to the extent deemed appropriate by the Employer, welfare benefits
to Participants. Said welfare benefits are those which are either (a) intended
to safeguard or improve the health of a Participant or Dependent, or (b) which
protect against a contingency that interrupts or impairs a Participant's earning
power (as those phrases (a) and (b) are defined in Section 501 (c) (9) of the
Code); provided, however, that no such welfare benefit program shall violate,
either in design or operation, Section 5.4 of the Agreement or Sections 501 (c)
(9), 505 or 4976 of the Code.
Section 8.1. Amendment of Trust. The Sponsor shall have the right to
amend the Trust at any time and from time to time and to any extent deemed
necessary or advisable; provided, however, that no amendment shall:
(a) vest in the Employer any ownership of the Trust's assets;
(b) have the effect of discriminatorily depriving, on a retroactive
basis, any Participant or Beneficiary of any beneficial interest which has
become payable from the Trust prior to the date such amendment is effective;
(c) affect the responsibilities of the Trustee without the Trustee's
written consent; or
(d) have the result of diverting the assets of the Trust Fund to any
purpose other than the purpose set forth in Article II.
The Sponsor shall promptly notify the Trustee of any amendment adopted pursuant
to this Article, and shall promptly provide the Trustee with a copy of each such
Section 9.1. Right to Discontinue Contributions. Although the Trust has
been established with the intention that it continue to operate indefinitely and
that the Employer (and, to the extent determined by the Sponsor, the
Participants, Beneficiaries or Dependents) contribute to the Trust for an
indefinite period, the Sponsor reserves the right to permanently discontinue
contributions to the Trust at any time. Thereafter, the provisions of the Trust
shall continue in full force and effect, subject to termination in accordance
with Section 9.2.
Section 9.2. Right to Terminate Trust. The Sponsor reserves the right
to terminate the Trust at any time by written notification to the Trustee. Upon
receipt of such notice, the Trustee shall proceed to apply the Trust Fund's
assets in accordance with Section 9.3.
Section 9.3. Application of Trust Fund Assets. In the event the Trust is
to be terminated in accordance with Section 9.2 or any final and unappealed
order of any court of competent jurisdiction, no further contributions shall be
made to the Trust by the Employer. The assets in the Trust Fund, to the extent
they exist, shall be applied in the following order, as directed by the
Administrative Committee unless a final and unappealed order of any
court of competent jurisdiction or any applicable law shall mandate a contrary
(a) all administrative expenses and fees for professional services,
whether to accountants, lawyers, actuaries, administrators or other persons,
which are necessary to administer or terminate the Plan, if applicable, and
Trust and prepare final reports either under this Agreement, the Act or any
applicable law, and which are reasonable in amount; then to
(b) the providing of benefits to Participants, Dependents and
Beneficiaries with respect to claims arising prior to the date of termination or
such earlier date as the Administrative Committee may designate; and then to
(c) the providing of "life, sick, accident, or other benefits," as that
phrase is defined in Section 501 (c) (9) of the Code and as shall be determined
by the Administrative Committee. This may include the payment of premiums or
benefits or other payments or transfers to any person (including, but not
limited to, an individual, trust, estate, governmental fund or account,
executor, administrator or fiduciary, whether corporate or otherwise) for
insurance or benefit coverage for employees of such type and amount as the
Administrative Committee determines, on the basis of objective and reasonable
standards which do not result in disproportionate payments to similarly situated
employees or discrimination in favor of officers, shareholders or highly
compensated employees (as defined in Section 501 (c) (9) of the Code) or highly
compensated individuals (as defined in Section 505 of the Code).
Section 10.1. Inalienability of Benefits. Except as may otherwise be
provided herein, the right of any Participant, Dependent, Beneficiary or other
person or entity to any benefit or payment from the Trust shall not be subject
to voluntary or involuntary transfer, alienation, pledge, assignment or other
disposition and shall not be subject to attachment, execution, garnishment,
sequestration or other legal or equitable process. Any attempt to transfer,
alienate, pledge, assign or otherwise dispose of such right or any attempt to
subject such right to
attachment, execution, garnishment, sequestration or other legal or equitable
process shall be null and void.
Section 10.2. No Implied Rights. Neither the establishment of the Trust
nor any modification thereof, nor the creation of any fund, trust or account
thereunder, shall be construed as giving any Participant, Employee, Retiree,
Dependent, Beneficiary or other person or entity any legal or equitable right
unless such right shall be specifically provided for in the Plan and the Trust
or conferred by affirmative action of the Employer in accordance with the
express written terms and provisions of the Plan and the Trust.
Section 10.3. Status of Employment Relations. The adoption and
maintenance of the Trust shall not be deemed to constitute a contract between
the Employer and its Employees or any representative thereof or to be
consideration for, or an inducement or condition of, the employment of any
person. Nothing contained herein shall be deemed to:
(a) give to any Employee the right to be retained in the employ of the
(b) affect the right of the Employer to discipline or discharge any
Employee at anytime; or
(c) affect any Employee's right to terminate his employment at any time.
Section 10.4. No Guarantee. Nothing contained in the Trust shall
constitute a guarantee by the Employer, the Sponsor, the Board, the
Administrative Committee or the Trustee that the assets of the Trust Fund will
be sufficient to pay any benefit to any person or make any other payment;
payments to be paid from the Trust are limited to the assets remaining in the
Trust at the time payment is made. Prior to the time that distributions are made
in conformity with the Plan and the Trust, the Participants, Employees,
Retirees, Dependents, Beneficiaries or other persons shall not receive any
distribution of cash or other thing of current or exchangeable value, either
from the Employer, the Sponsor, the Board, the Administrative Committee or the
Trustee on account of, or as a result of the Trust Fund created hereunder.
Section 10.5. Service in More than One Capacity. A person or groups of
persons may serve in more than one fiduciary capacity with respect to the Trust.
Section 10.6. Adoption by Others. Any corporation or other business
entity which is sufficiently affiliated with the Sponsor for purposes of Section
501 (c) (9) of the Code may adopt the Trust in any manner acceptable to the
Administrative Committee provided there is written evidence of such adoption. If
a Successor Company to the Employer or any other person or entity to whom the
Employer assigns its rights elects to continue the Trust, such Successor Company
or purchaser shall be substituted for the Employer under this Agreement. Each
Employer, other than the Sponsor, which is or shall become a party to this
Agreement, hereby irrevocably gives and grants to the Sponsor and the
Administrative Committee full and exclusive power and authority to exercise all
of the powers conferred upon it by the terms of this Agreement and to take or
refrain from taking any and all action which such Employer might otherwise take
or refrain from taking with respect to this Agreement, including the sole and
exclusive power to exercise, enforce or waive any rights whatsoever which such
Employer might otherwise have with respect to the Trust Fund, and each such
Employer, by becoming a party to this Agreement, irrevocably appoints the
Sponsor its agent for such purposes. The Trustee shall have no obligation to
account to any such Employer or to follow the instructions of or otherwise deal
with any such Employer, the intention being that the Trustee shall deal solely
with the Sponsor and the Administrative Committee as if the Trustee and Sponsor
were the only parties in this Agreement.
Section 10.7. Withdrawal by Participating Affiliates. Each individual
Employer which has adopted this Trust may, by resolution of the board of
directors or executive or management committees of such Employer, or its
delegates, and subject to the approval of the Sponsor and the satisfaction of
such conditions, if any, as may be imposed by the Sponsor or the Administrative
Committee, terminate its adoption of the Trust. Such withdrawal will be
effective upon receipt of written notice of such withdrawal by the Sponsor and
Trustee, unless such notice is waived.
Section 10.8. Actions by Sponsor. All actions by the Sponsor under this
Trust shall be by resolution of the Administrative Committee, or by a person or
persons or committee designated by the Administrative Committee.
Section 10.9. Binding Effect. The provisions of the Trust shall be
binding on the Employer, the Trustee, the Sponsor, the Board, the Administrative
Committee and their successors and on all
persons entitled to benefits under the Plan and their respective heirs, legal
representatives and successors in interest.
Section 10.10. Governing Laws. The Trust shall be construed and
administered according to the laws of the State of New York, to the extent that
such laws are not preempted by the laws of the United States of America.
Section 10.11. Counterparts. The Trust may be executed in any number of
counterparts, each of which shall be deemed an original, and the Agreement may
be sufficiently evidenced by any one counterpart.
Section 10.12. Number and Gender. Wherever appropriate, words used in
this Trust in the singular may mean the plural, the plural may mean the
singular, and the masculine may mean the feminine or neuter.
Section 10.13. Courts. Except as otherwise required by law, in case of
any court proceedings involving the Trustee, the Employer, the Sponsor, the
Board, the Administrative Committee or the Trust Fund, only the Employer, the
Sponsor, the Board, the Administrative Committee and the Trustee shall be
necessary parties to the proceedings, and no other person shall be entitled to
notice of process. Except where otherwise specifically required by the Act, the
United States District Court for the Southern District of New York shall have
the sole and exclusive jurisdiction over any lawsuit or other judicial
proceeding relating to or arising from this Agreement. If that court lacks
federal subject matter jurisdiction, the Supreme Court of the State of New York,
New York County shall have sole and exclusive jurisdiction. Either of these
courts shall have proper venue for any such lawsuit or judicial proceeding, and
the parties waive any objection to venue or their convenience as a forum. The
parties agree to submit to the jurisdiction of any of the courts specified and
to accept service of process to vest personal jurisdiction over them in any of
these courts. A final and unappealed judgment entered in any such proceeding
shall be conclusive. The parties further hereby knowingly, voluntarily and
intentionally waive, to the fullest extent permitted by Applicable Law, any
right to a trial by jury with respect to any such lawsuit or judicial proceeding
arising or relating to this Agreement or the transactions contemplated hereby.
Section 10.14. Notices. Whenever any notice may be or is required to be
given by the Trustee, the Sponsor, the Board or the
Administrative Committee to any person, such notice may be given by United
States mail, mailed to such person at his last address appearing in the
records of the Sponsor; provided, however, in the event notice is to be given to
the Sponsor, such notice shall be directed to the President of the Sponsor.
Section 10.15. Persons Dealing with Trustee. No person or entity
contracting or in any way dealing with the Trustee shall be under any obligation
to ascertain or inquire (a) into any powers of the Trustee, (b) whether such
powers have been properly exercised, or (c) the source or application of any
funds received from or paid to the Trustee, and such person may rely on the
Trustee's exercise of any power or authority as conclusive evidence that he
possesses such power and authority. This Section shall not apply to any person
who is a fiduciary with respect to the Trust.
Section 10.16. Titles. All titles used in this Agreement are for
purposes of identification only and shall have no bearing on the meaning,
construction or interpretation of the Articles or Sections to which they refer.
Section 10.17. Tax Exemption. The Plan and the Trust are intended to
constitute an organization described in Section 501 (c) (9) of the Code and to
satisfy any applicable requirements of the Act, and this Agreement shall be
interpreted and the Trust shall be administered consistent with such intention.
Section 10.18. Misrepresentations. The Administrative Committee may (but
shall not be required to) rely upon any certificate, statement or other
representation made to it by an Employee, Participant, Dependent, Beneficiary or
other recipient with respect to any fact with regard to any of the provisions of
the Plan and the Trust or the operation of either. Any such certificate,
statement or other representation shall be conclusively binding upon such
Employee, Participant, Dependent, Beneficiary or other recipient or his personal
representative, heir, or assignee (but not upon the Administrative Committee),
and any such person or recipient shall thereafter be estopped from disputing the
truth of any such certificate, statement or other representation.
Section 10.19. Incapacity. In the event any person or entity entitled to
receive any distribution from the Trust shall, in the opinion of the
Administrative Committee, be legally incapable of giving a valid receipt and
discharge for such distribution, and
another person or entity is then maintaining or has custody of the person or
entity first referred to, then such distribution, at the option of the
Administrative Committee, may be made to the person or entity maintaining or
having such custody. Such distribution shall be in complete discharge of the
liability under the Plan and the Employer, the Administrative Committee and the
Trustee shall have no responsibility to see to the application of such
Section 10.20. Partial Invalidity. If any provision of this Agreement is
held to be illegal or invalid for any reason, such illegality or invalidity
shall not affect the remaining portions of the Agreement unless such illegality
or invalidity prevents accomplishment of the objectives and purposes of the
Trust. In the event of any such holding, the parties may immediately, and if in
accordance with appropriate law retroactively, amend the Agreement as is
necessary to remedy any such defect.
Section 10.21. Entire Agreement. With the exception of a separate fee
agreement which is anticipated to be entered into by the Trustee and the
Sponsor, this Agreement sets out the entire Agreement between the parties in
connection with the subject matter, and this Agreement supersedes any prior
agreement, statement, or representation relating to the obligations of either
party, whether oral or written.
Section 10.22. Duty to Furnish Information. The Administrative Committee
and the Sponsor on the one hand and the Trustee on the other each shall furnish
to the other any documents, reports, returns, statements, or other information
that the other reasonably deems necessary to perform its duties imposed under
the Plan or this Agreement or otherwise imposed by Applicable Law.
Section 10.23. Survival. The provisions of Sections 4.10, 4.11, 4.12,
5.1, 5.2, 5.3, 5.5, 5.8, 5.12, 5.13, 10.10, 10.13 and Article VI shall survive
termination of the Trust created under this Trust Agreement or resignation or
removal of the Trustee for any reason.
Section 10.24. Force Maieure. Neither party shall be liable to any
Person for any loss due to forces beyond its control including, but not limited
to strikes or work stoppages, fire, telecommunications failure, acts of war
(whether declared or undeclared) or terrorism, insurrection, revolution, nuclear
fusion, fission or radiation, or acts of God.
Section 11.1. Auhority of Administrative Committee; Power of
Administrative Committee and Qualified Investment Managers to Designate Persons
Authorized to Act.
(a) the Administrative Committee shall appoint one or more Persons
(who may be, but are not required to be employees of the Sponsor) to act on its
behalf on matters relating to the Trust Fund and this Agreement, and, from time
to time, it shall certify to the Trustee the name or names of any Person or
Persons so authorized to act. Except to the extent specifically disclosed in
writing to the Trustee, any such Person is authorized to act on behalf of the
Administrative Committee as a whole. The Trustee may continue to rely on the
authority of a Person to act for the Administrative Committee until the
Administrative Committee or Sponsor notifies the Trustee that that Person is
no longer authorized to act for the Administrative Committee.
(b) Any Qualified Investment Manager appointed by the Sponsor shall
designate one or more Persons, each of whom shall be authorized to give
Instructions on behalf of such Qualified Investment Manager. From time to time
the Qualified Investment Manager shall certify to the Trustee the name or names
of any Person or Persons so authorized to act. The Trustee may continue to rely
upon the authority of such Person to act for the Qualified Investment Manager
until the Qualified Investment Manager files a subsequent certification with the
Section 11.2. Acting on Instructions; Unclear Instructions.
(a) The Trustee is authorized to act under this Agreement (or to refrain
from taking action) in accordance with instructions, notices, or directions
received by the Trustee, via telephone, telex, facsimile transmission, or other
teleprocess or electronic instruction or trade information system acceptable to
the Trustee ("Instructions"). The Trustee will have no responsibility for the
authenticity or propriety of any Instructions that the Trustee believes in good
faith to have been given by an authorized Person or which are transmitted with
proper testing or authentication pursuant to terms and conditions that the
Trustee may specify. The
Trustee is authorized to the extent permitted by Applicable Law to accept and
act upon any Instructions received by it without inquiry.
(b) Unless otherwise expressly provided, all Instructions will continue
in full force and effect until canceled or superseded.
(c) Trustee may seek clarification of an Instruction from an authorized
Person and may decline to act upon an Instruction if it does not receive
clarification. Trustee will not be liable for any loss arising from any delay
while it seeks such clarification.
Section 11.3. Confirmation of Oral Instructions/Security Devices. Any
Instructions delivered to the Trustee by telephone or facsimile transmission
will promptly thereafter be confirmed in writing by an authorized Person. The
Trustee shall not be liable for having followed such Instructions
notwithstanding the failure of an authorized Person to send such confirmation in
writing or the failure of such confirmation to conform to the telephone or
facsimile Instructions received provided the Trustee promptly notifies such
authorized Person of such failure to confirm or any inconsistency between the
instruction and the confirmation. Either party may electronically record any of
their telephonic communications. The Sponsor, the Administrative Committee, and
each Qualified Investment Manager will be responsible for safeguarding any test
keys, identification codes or other security devices that the Trustee may make
available to them or any authorized Person.
IN WITNESS WHEREOF, the Sponsor and the Trustee have caused this
Agreement to be executed and attested.
THE PITTSTON COMPANY
Title: Vice President, Chief Financial Officer
- --------------------- ------------------------------------------
THE CHASE MANHATTAN BANK
Title: Vice President
- ------------------------ ----------------------------------------
The following Employers participate in the Trust:
The Pittston Company
Thames Development, Ltd.
Buffalo Mining Company
Clinchfield Coal Company
Eastern Coal Company
Elkay Mining Company
Pittston Coal Group, Inc.
Ranger Fuel Corporation
Sea "B" Mining Company
Dante Coal Company
Jewell Ridge Coal Corporation
Kentland-Elkhorn Coal Corporation
Little Buck Coal Company
Meadow River Coal Company
Pittston Coal Group Companies Benefit
Plan for UMWA Represented Employees
UMWA Combined Benefit Fund Plan
1992 UMWA Benefit Plan