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Home My WebLink About05-18-101505607120 ~ REV-1500 OFFICIAL USE ONLY ..... EX (06-05) County Code Vear Gile Number PA Department of Revenue INHERITANCE TAX RETURN ,l Bureau of Individual Taxes 0 0 0 3 N ~ ~ Po Box.2sosol ' ~.~.. RESIDENT DECEDENT 21 10 Harrisburg. PA 17128-0601 ENTER DECEDENT INFORMATION BELO Date of Death Date of Birth Social Security Number 11071921 10052009 nni Suffix Decedent's First Name Decedents Last Name C RUTH SLOVACEK (If Applicable) Enter Surviving Spouse's Information Below Mi Suffix Spouse's First Name Spouse's Last Name Soouse's Social Security Number FILL IN APPROPRIATE OVALS BELOW ® 1 Origrnat Return a Limited Estate ^ 6 decedent Died Testate ,Artacn Copy of Wdlr ^ 9 i.digauon Proceeds Received THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS 2. Supplemental Return ^ 4a. Future Interest Compromise tdate of death after 12.12-821 7 Decedent Maintained a Lvmg Trust ® ~: Attach Copy of Trust; 10 Spousal Poverty Creat (date of death ^ between 12-31-ot and ^-'~-95~ CORRESPONDENT -THIS SECTION MUST BE COMPLETED. ALL CORRESP dame THOMAS A. CAPPER Firm Name (If Applicable) BALL, MURREN & CONNELL First line of address 2303 MARKET STREET Second line of address City or Post Office CAMP HILL Skate PA ^ 3 Remainder Return (date of death pnor to 12-13-82) ^ 5. Federal Estate Tax Returc Required 8 Tota Number of Safe Deposd Boxes 1 ^ E'ecron to tax under Sec. 9113IAj (AC.acn Sch.O) ID CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTS Daytime Telephone Number 7172328731,..,, ~.~ ~:.-, REGIS3~~F WILLS'OSE ONLY- ~ - - -n co - ~- ~~ -7 - ~~ _,~: _l DATE FILEGiC ZIP Code 17011 TO: Correspondent'se-mail address: CapperQCbmC-IaW.net - - 11 s trueecorreet and co pletle cDecleration of peepa er odther than the persolnalaepresentative sbased on a nfo mat on o wh~ hhpreparerthas any knowledge.be~ief DATE SIGNATURE OF P SON RESP SI&.E =OR LING RETURN ~~ ~~s Marvin J. Slovacek, Jr. ~~~ ~ ~~/~ ADDRESS ~ clo Milady Horakore 85195, C2-170 00 Praha 7, Czech Republic ...,., .,.,o~ ~~occaRFR oTHER.T,-~AN greFFi~SENTATivE ~~ Thomas A. Capper CATS S~ 7//jJ ADCRESS V V 2303 Market S p Hill, PA 17011 Side 1 1505607120 " 1505607120 ~~ 1505607220 REV-1500 EX Decedent's Social Security Number SLOVACEK, RUTH C ' s Name. Decedent RECAPITULATION 1. Real Estate (Schedule A) .......................................................................................... 1. 2. Stocks and Bonds (Schedule B) ............................................................................... 2. 3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C).......... 3. 4. Mortgages & Notes Receivable (Schedule D) .......................................................... 4. 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) ................ 5. 6. Jointly Owned Property (Schedule F) ^ Separate Billing Requested ............. 6. 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property ^ Separate Billing Requested ............. 7. 8 '] 9 , 6 4 8.81 (Schedule G) 879,648.81 ........ Total Gross Assets (total Lines - ~~• _ g $ _ _ _ - . __ _ 12 , 370.00 9. Funeral Expenses & Administrative Costs (Schedule H) .......... 9. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) ............................... 10 10. . . 12,370.00 11. Total Deductions (total Lines 9 & 10) ..................................................................... . 11. 867 , 278.81 .. 12. Net Value of Estate (Line 8 minus Line 11) .................................... . 12. Charitable and Governmental Bequests/Sec 9113 Trusts for which 13 13 . an election to tax has not been made (Schedule J) ........................ . . 867,278.81 ... 14. Net Value Subject to Tax (Line 12 minus Line 13)..... .. 14. _ _ - TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 15. (a)(1.2) X .00 16 Amount of Line 14 taxable $ 6 7, 2 7 8 8 1 1s. 3 9, 0 2 7 5 5 at lineal rate X .045 17. Amount of Line 14 taxable 17. at sibling rate X 12 18. Amount of Line 14 taxable 1 g. at collateral rate X .15 ........ 19. .... 39, 027.55 19. Tax Due ......................................................................................................... 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT. Side 2 1505607220 1505607220 REV-1500 EX Page 3 Decedent's Complete Address: File Number 21 - 10 - 0003 Slovacek, Ruth C _ -- - - - _ - -_ - - - - _ - - STREET ADDRESS 2100 Bent Creek Boulevard - - - - - - - _ -- - _ _ - STATE ZIP ciTY - - - pq 17050 Mechanicsburg Tax Payments and Credits: (1> 39,027.55 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit _ _ -_ _ - - 36,531.00 B. Prior Payments _ -_ _ - _ - -- -- C. Discount 1 ,922.68 Total Credits (A + B + C) (2) 38,453.68 3. Interest/Penalty if applicable D. Interest - -- - - - - E. Penalty - -- - - - - 0.00 Total Interest/Penalty (D + E) (3) 4, If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. (4) Check box on Page 2 Line 20 to request a refund (5) 57 3.87 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5A) A. Enter the interest on the tax due. (56> 573.87 g. Enter the total of Line 5 + 5A. This is the BALANCE DUE. Make Check Payable to: REGISTER OF WILLS, AGENT PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS Yes No 1. Did decedent make a transfer and: x a. retain the use or income of the property transferred :............................. X b. retain the right to designate who shall use the property transferred or its income x c. retain a reversionary interest; or .............................................................................................. .................. x d. receive the promise for life of either payments, benefits or care ......................... . 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without x receiving adequate consideration ........................................... . 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death?......... x 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which x , ........ contains a beneficiary designation ................ IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE- RETURN. - - -- _-_ ____ --- For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is three (3) percent [72 P.S. §9116 (a) (1.1) (i)]. For dates of death on or after J 1n1 ary 1 ~ The statute doesenot exempt a t ansfer toua surv v ng spo~ er f~om tax,sand the statultory req~ lreme tsro (0) percent [72 P.S. §9116 (a) ( ) Ol for disclosure of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1, 2000: The tax rate imposed on the net value of transfers from a deceased child twenty-one years of age or younger at death to or for the use o a natural parent, an adoptive parent, or a stepparent of the child is zero (0) percent [72 P.S. §9116 (a) (1.2)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is four and one-half (4.5) percent, except as noted in 72 P.S. §9116 1.2) [72 P.S. §9116 (a) (1)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is twelve (12) percent [72 P.S. §9116 (a) (1.3)]. A sibling is defined under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption. ' SCHEDULE G COMMONWEALTH OF PENNSYLVANIA INTER-VIVOS TRANSFERS & '"HERITANCE TAx RETURN MISC. NON-PROBATE PROPERTY RESIDENT DECEDENT - _ _... -_ - - - FILE NUMBER ESTATE OF Slovacek, Ruth C 21 - 10 - 0003 - - - - _ _- - - e 2 is es. - - This schedule must be completed and filed if the answer to any of questions 1 through 4 on pag - - -- - - - - - - -- - i of ExcLUSION TAXABLE VALUE DESCRIPTION OF PROPERTY DATE OF DEATH DECD'S ITEM VALUE OF ASSET INTEREST (IF APPLICABLE) Include the name of the transferee, their relationship to decedent NUMBER ~ and the date of transfer. Attach a copy of the deed for real estate. 50, 547.00 50,547.00 100% 0.00 1 'Nationwide Annuity Contract #7059 7744 Beneficiary: Ruth Compton Slovacek Trust 2 Western National Life Annuity Contract # MM00000837 Beneficiaries: Marvin J. Slovacek, Jr. -Son Diane Thompson -Daughter Lori S. vomLehn -Daughter 3 Western National Life Annuity Contract # MM00002556 Beneficiaries: Marvin J. Slovacek, Jr. -Son Diane Thompson -Daughter Lori S. vom Lehn -Daughter 26,074.00 100% 267,565.00 100% 0.00 26,074.00 0.00 267,565.00 4 USAA Annuity Contract # 01636407AB Beneficiary: Ruth Compton Slovacek Trust 5 New York Life Annuity Contract # 58074845 Beneficiaries: Marvin J. Slovacek, Jr. -Son Diane Thompson -Daughter Lori S. vom Lehn -Daughter 6 AT&T, Inc. (T) 5,025.1241 common shares Unit Value 26.70 11,335.00 '', 100% 24,286.00 ' 100% 134,170.81 100% 0.00 11, 335.00 0.00 24,286.00 134,170.81 879,648.81 TOTAL (Also enter on line 7, Recapitulation) SCHEDULE GFERS & COMMONWEALTH OF PENNSYLVANIA INTER-VIVOS TRANS INHERITANCE TAX RETURN MISC. NON-PROBATE PROPERTY ~. RESIDENT DECEDENT C,QntI11U@CI I' FILE NUMBER ESTATE OF Slovacek, Ruth C 21 - 10 - 0003 - -- -_ - - - -_ -__ - This schedule must be completed and filed if the answer to any of questions 1 through 4 on page is yes. _ _ _ _ _ - - DATE OF DEATH ~ OF EXCLUSION TAXABLE VALUE ITEM DESCRIPTION OF PROPERTY DECD'S p VALUE OF ASSET INTEREST '~ (IF APPLICABLE) Include the name of the transferee, their relationshi to decedent NUMBER and the date of transfer. Attach a copy of the deed for real estate. _ ~. 334, 1 08.00 334,108.00 ' 100% 'Chase Investment Services Corp. 7, Brokerage Account #PZH-372986 Address: Chase Investment Services Corp. AZ1-1276 ', 201 N. Central Avenue, Floor 30 Phoenix, AZ 85004 8 Miscellaneous clothing and personal possessions 9 Chase Investment Services Corp. ' Cash Account -Account #PZH-372986 Address: Chase Investment Services Corp. AZ1-1276 201 N. Central Avenue, Floor 30 Phoenix, AZ 85004 500.00 ' 100% ' 31,063.00 ' 100% 500.00 31, 063.00 - -_ __ ___. Page 2 of Schedule SCHEDULE H FUNERAL pCPENSES & COMMONWEALTH OF PENNSYLVANIA /~ry~AIw 1IQ'~e'T~ ~S 1 J INHERITANCE TAX RETURN /'1LI1Y~ ~~IIJ , , v~ _. _. RESIDENT DECEDENT _ _- - - - - - - -- - _ - - _ FILE NUMBER 21 - 10 - 0003 ESTATE OF Slovacek, Ruth C - - - - - - Debts of decedent must be reported on Schedu e _ _ - _ - ---- - - - - - - AMOUNT ITEM DESCRIPTION NUMBER ', FUNERAL EXPENSES: $,320.00 A. 1 ~, Ewing Brothers Funeral Home, Inc. 2,550.00 2 Brighton City Gillees Mortuary (Interment Expenses) g, ADMINISTRATIVE COSTS: ~ Personal Representative's Commissions Name of Personal Representative(s) 0.00 Street Address State Zip City Year(s) Commission paid 1,500.00 2. Attorney's Fees Ball, Murren & Connell g Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Street Address State Zip City Relationship of Claimant to Decedent 4. Probate Fees 5. Accountant's Fees g. Tax Return Preparer's Fees ~ Other Administrative Costs 1 TOTAL (Also enter on line 9, Recapitulation) 12,370.00 REV•1513 EX+ (11-OS) ~. SCHEDU/LpE J COMMONWEALTH OF PENNSYLVANIA pENEFICIMII~ES INHERITANCE TAX RETURN ~, _. _- - - _ _ - - - - RESIDENT DECEDENT _-_-: _ - - - - -- _ -- - _ -_ - _ _ - ',FILE NUMBER ESTATE of Slovacek, Ruth C 21 - 10 - 0003 RELATIONSHIP TO SHARE OF ESTATE AMOUN ( O$)ESTATE DECEDENT (Words) NUMBER NAME AND ADDRESS OF PERSON(S) po Not List Trustee(s) RECEIVING PROPERTY I~ TAXABLE DISTRIBUTIONS dl str b tions~ antd tpransfers under sec. 9116 (a) (1.z)~ 1/3 of residue of Daughter 1 Lori S. vom Lehn trust estate Daughter 1/3 of residue of 2 Diane Thompson trust estate Son 1/3 of residue of 3 Marvin J. Slovacek, Jr. trust estate Enter dollar amounts for distributions shown above on lines 1~5 through 18 on Rev 1500 cover sheet, as appropriate. II. NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT TAKE B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS 0.00 TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET DECLARATION OF LIVING TRUST of the Ruth Compton Slovacek Trust Prepared and Copyright 1993 by maw Office of . • Richard W. Morris, Juris Doctor Practice Limited to Estate Planning 3612 West Dunlap Avenue, Suite F Phoenix, Arizona 85051 Reference No. A16C067 Law Office of Richard W. Morris, J.D.. Practice Limited To Estate Planning 3612 West Dunlap Avenue, Suite F, Phoenix, AZ 85051 (602) 973-3646 Fax (602) 841-8422 Ruth Compton Slovacek 13909 Casa Linda Drive Sun City West, AZ 85375 Re: Ruth Compton Slovacek Trust Reference No. Al BC067 Dear Mrs. Slovacek: You certainly made a wise decision when you selocuments~are nrthis Portfolios These arefyourr Estate Plan to avoid probate. Your Estate Plan d Revocable Living Trust Pour-Over Will Financial Durable Power of Attorney Health Care Durable Power of Attorney Directive to Physicians Behind the first tab in the Portfolio, you will find instructions to help you transfer your assets to your laving Trust, Guidelines for your Letter of Instruction, instructions and forms to help you transfer your assets to your Living Trust, instructions for your Successor Trustee, plus other information we think will be helpful to you. APPROVE THESE DOCUMENTS. You are the find I ersperrors dohoccuravPleaseerev ew them to assure accuracy in the preparation of these p p , carefully. If you wish to cancel or change the documents, you must make a proper amendment to your Living Trust to change it. DO NOT WRITE ON THE ORIGINAL PAGES. See the amendment procedure in the Information Section. Improper chancres can make the entire plan void. If you changed your mind~~ from the informati~~ ;provided tothe De~larat on of Trusttyou self provided to me was in error), I suggest that you either amend or that you provide me with the updated infor editional work done pare an amendment for you. If I do the work, I charge a small fee for the i ht to make copies of the copyrighted Infor ton Section and other You are granted the r g documents for your personal use. DECLARATION OF TRUST ARTICLE 1 ~. Declarations 1.1. IDENTITY OF TRUSTOR. Ruth Compton Slovacek is the Trustor of the trust created by this Declaration of Trust. 1.2. NAME OF TRUST. The name of this Declaration of Trust is the Ruth Compton Slovacek Trust. 1.3. INTENTION OF TRUSTOR. It is the intention of Ruth Compton Slovacek to create a revocable grantor living trust to: 1.3.1. Avoid probate of assets held in the living trust; 1.3.2. Increase privacy; 1.3.3. Reduce the chance of a conservatorship; 1.3.4. Centralize the control of the estate of Ruth Compton Slovacek; and 1.3.5. Provide a flexible means of distributing insurance proceeds. 1.4. UNDERSTANDING OF TRUSTOR. Ruth Compton Slovacek understands that: 1.4.1. This Declaration of Trust does not protect assets from the creditors of Ruth Compton Slovacek. All assets in this Trust are available to creditors. 1.4.2. Assets not held in this Trust that are owned by Ruth Compton Slovacek may be subject either to probate proceedings after death or to conservatorship proceedings before death. 1.4.3. This Declaration of Trust provides no income tax benefits. Because this is a revocable Declaration of Trust, the Internal Revenue Service treats all trust income as if paid to Ruth Compton Slovacek. 1.5. CONVEYANCE TO TRUSTEE. Ruth Compton Slovacek hereby conveys and transfers, without consideration, to Ruth Compton Slovacek as the Trustee named in this Ceclaraton of ~~ rust t"!P assets described in Schea`ule 1. 1.6. DEFINITION OF TRUST ESTATE. The words °Trust Estate" mean all assets held by the Trustee under the terms of this Declaration of Trust either under the terms of this Declaration of Trust or the terms of any document that directs that assets be held in trust under this Declaration of Trust. Ruth Compton Slovacek Trust Page 1 1.7. ADDITIONS TO TRUST ESTATE. Any person may at any time, either before or after the death of Ruth Compton Slovacek, add other assets to the Trust Estate if the assets are acceptable to the Trustee. The addition may be by conveyance, assignment, transfer, or Will. Such assets (when received -and accepted by the Trustee) shall become part of the Trust Estate and be subject to all the terms of this Declaration of Trust. 1.8. DESIGNATION OF TRUSTEE. Ruth Compton Slovacek is the Trustee of the trust created by this Declaration of Trust, so long as Ruth Compton Slovacek shall serve as Trustee. The term "Trustee" shall refer to Ruth Compton Slovacek so long as Ruth Compton Slovacek shall serve as Trustee; and afterwards to each Successor Trustee who succeeds to the office of Trustee. Each Trustee shall serve without any security, surety, or bond. No Trustee is required to be appointed by any court. 1.9. TRUSTEE MAY RESIGN. Ruth Compton Slovacek, or any Successor Trustee, may resign at any time by written notice to Ruth Compton Slovacek. If Ruth Compton Slovacek is not living, written notice may be given to the income beneficiaries of the Trust. The resignation of a Trustee shall not be effective until: 1.9.1. The appointment of a Successor Trustee; and 1.9.2. The Successor Trustee has delivered a written acceptance of office to the resigning Trustee. 1.10. SUCCESSOR TRUSTEE. On the death of Ruth Compton Slovacek, or should Ruth Compton Slovacek resign or become unable, for any reason, to serve as Trustee of the trust provided for in this Declaration of Trust, Marvin Joseph Slovacek, Jr. and then Diane Jo Thompson and then Lori Dawn vom Lehn shall forthwith become Trustee. Each Successor Trustee shall succeed to Office of Trustee of the Trust Estate, and shall have all the powers, right, discretion, and obligations conferred on such Trustee by this Declaration. 1.11. DUTIES OF TRUSTEE. The Trustee shall hold, administer and distribute the Trust Estate as provided in this Declaration of Trust. 1.t2. POWER TO CHANGE OR REVOKE TRUST. While living and competent, Ruth Compton Slovacek may, at any time, without the consent of anyone else, by written document signed by Ruth Compton Slovacek and delivered to the Trustee: 1.12.1. Revoke this Declaration of Trust. 1.12.2. Revoke any amendment to this Declaration of Trust. i .12.3. Chasipe ar~~ provision of this Declaration of i rust by amen~.ln~en*. 1.12.4. Amend any- provision of this Declaration of Trust 1.12.5. Change any amendment to this Declaration of Trust. Ruth Compton Slovacek Trust Page 2 1.12.6. Amend any amendment to this Declaration of Trust. 1.12.7. Withdraw any part of the Trust Estate. 1.12.8.. Withdraw all the Trust Estate. 1.13. TRUST IRREVOCABLE ON DEATH OF TRUSTOR. On the death of Ruth Compton Slovacek the trust created by this Declaration shall become irrevocable and not subject to amendment except as otherwise provided. ^ End of Article ^ Ruth Compton Slovacek Trust Page 3 ARTICLE 2. Distributions During .Life of Trustor 2.1. TRUSTOR IS BENEFICIARY DURING LIFE. Ruth Compton Slovacek is the beneficiary of this Trust during the life of Ruth Compton Slovacek. 2.2. NET INCOME TO TRUSTOR. During the life of Ruth Compton Slovacek the Trustee (if the Trustee is not Ruth Compton Slovacek} shall at least annually, unless otherwise directed by Ruth Compton Slovacek in writing, pay to or apply for the benefit of Ruth Compton Slovacek all of the net income from the Trust Estate. 2.3. INVASION OF TRUST ESTATE. Should the net income of the Trust Estate be not enough to provide for the care, maintenance, or support of Ruth Compton Slovacek the Trustee may, in the Trustee's sole and absolute discretion, pay to or apply for the benefit of Ruth Compton Slovacek, or any dependents of Ruth Compton Slovacek, such amounts from the principal of the Trust Estate as the Trustee may from time to time think necessary or advisable. The term "care, maintenance, or support of the Trustor" shall mean: 2.3.1. The providing of proper care, maintenance, and support for Ruth Compton Slovacek, during any period of illness, or other want or necessity; 2.3.2. The support and maintenance of any persons, whether adult or minor, who are dependent on Ruth Compton Slovacek for support and maintenance; and 2.3.3. The education in the manner desired by Ruth Compton Slovacek of any person, whether adult or minor, dependent on Ruth Compton Slovacek. 2.4. INCOMPETENCY OF TRUSTOR. If Ruth Compton Slovacek becomes incompetent, Ruth Compton Slovacek shall not serve as Trustee and the Successor Trustee may, in the Trustee's sole discretion: 2.4.1. Pay all the net income from the Trust Estate (unless otherwise directed in writing by Ruth Compton Slovacek) to Ruth Compton Slovacek or apply the net income for the benefit of Ruth Compton Slovacek. These payments shall be in monthly or other convenient installments. 2.4.2. Pay to or apply for the benefit of Ruth Compton Slovacek, in addition to the net income from the Trust Estate, such amounts from the principal of the Trust Estate, up to the entire Trust Estate, as the Trustee may from time to time think necessary or advisable for the use and benefit of Ruth Compton Slovacek. F~ E~ ~d of Article Ruth Compton Slovacek Trust Page 4 ARTICLE 3. Death of Trustor 3.1. COLLECT ADDITIONAL ASSETS. After the death of Ruth Compton Slovacek, the Trustee shall: - 3.1.1. Collect all assets and insurance proceeds payable to the Trustee by reason of the death of Ruth Compton Slovacek. 3.1.2. Collect all bequests and devises distributable to the Trust Estate under the terms of the Pour-Over Will of Ruth Compton Slovacek. 3.2. PAYMENTS AND DISTRIBUTION OF THE TRUST ESTATE. After the death of Ruth Compton Slovacek, the Trustee shall: 3.2.1. Pay the expenses of the last illness, funeral, and burial of Ruth Compton Slovacek. 3.2.2. Pay inheritance, estate or other death taxes that are due because of the death of Ruth Compton Slovacek. Each recipient of taxable property shall bear his or her proportionate share of all death taxes. 3.2.3. Pay the debts for which Ruth Compton Slovacek is liable, not barred by any Statute of Limitations, Statute of Frauds, or other provision of law, which: 3.2.3.1. Are filed with the Trustee according to any statute in effect in the jurisdiction in which Ruth Compton Slovacek resided on the date of death relating to the claims of creditors and Revocable Living Trusts (this paragraph does not require prepayment of any installment debt); OR 3.2.3.2. The creditor has filed a valid creditor's claim in the probate proceeding of Ruth Compton Slovacek, if any (this paragraph does not require prepayment of any installment debt); OR 3.2.3.3. The creditor could have filed a valid creditor's claim if probate proceedings had been started (this paragraph does not require prepayment of any installment debt); OR 3.2.3.4. The creditor is not required to file a creditor's claim in a probate proceeding (this paragraph does not require prepayment of any installment debt). " ~.L.4. Pay c.u~ ~ ie~s fees, accounting faes, d. ~d other crusts ir?r'•llrre.~ Irt Cc~rlrleCllOn with the managerr~erit and distribution of the Trusr Estate. 3.2.5. If any beneficiary identified in this Article owes a monetary debt to Ruth Compton Slovacek, the Successor Trustee shall: Ruth Compton Slovacek Trust Page 5 3.2.5.1. Require each beneficiary to account to the Successor Trustee for all amounts owed at the time of the death of Ruth Compton Slovacek. .- 3.2.5.2. Deduct the amount of the debt then outstanding from the share of that beneficiary. 3.2.5.3. Not require a beneficiary to pay to the Trust Estate the difference between the debt and the share of the beneficiary, in the unlikely event the debt to Ruth Compton Slovacek exceeds the share of that beneficiary. 3:2.6. Deliver and transfer, free of trust, in the order of the page numbers of Schedule 2 and from top of Schedule 2 to bottom, the items listed in Field 1 of each Block of Schedule 2 to the person(s) whose name(s) is written in Field 2 of each Block, if that person survives Ruth Compton Slovacek. If more than one name is written in Field 2, share the asset equally among those living at the time of the distribution. If the person(s) listed in.Field 2 does not survive Ruth Compton Slovacek, the gift to that person is void. 3.2.6.1. If any asset (other than cash) listed on Schedule 2 is not in the Trust Estate at the time of the death of Ruth Compton Slovacek, the gift is void. 3.2.6.2. If the cash in the Trust Estate is not sufficient to pay all cash gifts listed on Schedule 2, the Trustee shall: 3.2.6.3. Sell enough assets not specifically given to an individual to pay all cash gifts listed on Schedule 2. 3.2.6.4. If the sale does not produce enough cash to pay all cash gifts listed on Schedule 2, pay the cash gifts by giving each a proportionate share. Determine the share by totaling all cash gifts and using the total listed as the denominator of a fraction. The numerator of the fraction is the amount listed for each gift. 3.2.7. Divide the remaining Trust Estate into as many equal shares as there are children then living of Ruth Compton Slovacek and children then deceased of Ruth Compton Slovacek but with a child or children then living. 3.2.7.1. Deliver and transfer, free of trust, one share to each of the children then living of Ruth Compton Slovacek; and 3.2.7.2. Divide the share of each child then deceased of Ruth Compton Slovacek but with a child or children then living into as many equal sub-shares as there are children then living of that respective deceased child of Ruth Compton Slovacek. The Trustee shall deliver and transfer, free of trust, one sub-share to each of the children of each child then deceased of Ruth Compto~~ Slovacek, but wi+h. a child or children then livir~a 3.2.8. If any assets of the Trust Estate are not otherwise distributed under the terms of this Declaration of Trust, the Trustee shall deliver and transfer those assets, free of trust, to those persons who would have been heirs of Ruth Compton Slovacek. Determine the identities of these persons and their respective shares according to the laws in effect in the Ruth Compton Slovacek Trust Page 6 jurisdiction in which Ruth Compton Slovacek resides on the date of death of Ruth Compton Slovacek according to the succession of separate property not acquired from a predeceased spouse. 3.2.9. If the Trustee determines- that,. because of the size of the Trust Estate, the probable costs of continuing to administer the Trust will exceed the probable benefit, the Trustee may distribute the Trust Estate to the income beneficiary or beneficiaries in proportion to their interests. If there are no income beneficiaries, distribute the Trust Estate as if all conditions precedent to the termination of the Trust have been fulfilled. 3.2.10. Unless sooner ended under other provisions of this Declaration of Trust, each trust created by this Declaration of Trust shall end twenty-one (21) years after the death of Ruth Compton Slovacek and those of the descendants of Ruth Compton Slovacek who are living at the date of the death of Ruth Compton Slovacek. ^ End ~of Article ^ Ruth Compton Slovacek Trust Page 7 ARTICLE 4. duties of Successor Trustee 4.1. DEFINITION OF SUCCESSOR TRUSTEE. The phrase "Successor Trustee" means any Trustee or Trustees other than Ruth Compton Slovacek. 4.2. DUTY OF CO-TRUSTEES. If there is more than one Successor Trustee, each Successor Trustee has a duty to the beneficiaries to join in the management and distribution of the Trust. Each Successor Trustee must use reasonable care to prevent a Co-Trustee from committing a breach of trust.. and must compel a Co-Trustee to correct a breach of trust. 4.3. DUTY TO MANAGE AND DISTRIBUTE ASSETS IN THE TRUST ACCORDING TO INTENTIONS OF TRUSTOR. The Successor Trustee has the duty to manage and distribute the assets in this trust according to intentions of Ruth Compton Slovacek as expressed in the terms of this Declaration of Trust:.: Any Letter of Instruction written by Ruth Compton Slovacek is not binding, but written to expand and clarify those intentions. 4.4. DUTY TO EXERCISE REASONABLE CARE AND SKILL. The Successor Trustee must exercise such care and skill as a person of ordinary prudence would exercise in dealing with his own property. 4.5. DUTY OF LOYALTY. The Successor Trustee must manage and distribute the assets in the Trust solely in the interest of the beneficiary. 4.6. DUTY TO DEAL IMPARTIALLY WITH BENEFICIARIES. If the trust has two (2) or more beneficiaries, the Successor Trustee has a duty to deal impartially with them. The Successor Trustee cannot favor one beneficiary over another. 4.7. DUTY TO AVOID CONFLICT OF INTEREST. The Successor Trustee must avoid conflicts of interest. This duty prohibits a Successor Trustee from entering into transactions with trust assets that will result in a profit to the Successor Trustee. This duty prohibits transactions in which the Successor Trustee's interest is adverse to the interests of any other beneficiary of the trust. 4.8. DUTY TO TAKE AND KEEP CONTROL. The Successor Trustee must act to take control (and keep control) of the trust assets. If (for any reason) the Successor Trustee does not immediately distribute the assets of the trust to the beneficiaries, the Successor Trustee must make the assets productive. 4.9. DUTY TO PRESERVE THE TRUST ASSETS. The Successor Trustee must use reasonable care and skill to preserve the assets in the Trust. 4.10. DUTY TO KEEP TRUST ASSE l"S SEPARATE. The Successor Trustee must keep all trust assets separate from the assets of the Successor Trustee. 4.11. DUTY TO NOTIFY BENEFICIARIES. The Successor Trustee shall notify, in writing, all Beneficiaries of their respective interest in the Trust Estate. The Successor Trustee shall, after Ruth Compton Slovacek Trust Page 8 the death of Ruth Compton Slovacek, give a copy of this Declaration of Trust and all Amendments to each Beneficiary. 4.12.= DUTY TO KEEP AND RENDER ACCOUNTS. Accounts are detailed statements about the financial transactions of the trust. The accounts must be similar to bank account statements in that the Successor Trustee must report a °beginning balance" and an °ending balance." The Successor Trustee must report all transactions that occurred during the reporting period. The Successor Trustee must "account" for the difference between the beginning balance and the ending balance. The Successor Trustee must keep careful records to obey this duty. 4.13. DUTY TO FURNISH INFORMATION. The Successor Trustee must keep the beneficiaries informed about matters involving their respective`~interests in the trust. Do this upon the request of any beneficiary. The information must be accurate about the nature and amount of the trust assets. The Successor Trustee must permit the beneficiary to inspect the subject matter of the Trust, accounts, vouchers, and other documents affecting the beneficiary's interest. 4.14. DUTY TO ENFORCE CLAIMS. The Successor Trustee must take reasonable steps to collect claims against others that are a part of the assets of the Trust. 4.15. DUTY TO DEFEND LAWSUITS. The Successor Trustee must defend lawsuits that may result in a loss to the Trust Estate, unless it is reasonable not to make such defense. 4.16. DUTY ABOUT DISCRETIONARY POWER. The Declaration of Trust gives the Successor Trustee "discretion" to act in many situations. The Successor Trustee must exercise that discretion reasonably. The Successor Trustee is not free to act in whatever way the Successor Trustee desires. This is true even if the Declaration of Trust states that the Successor Trustee's discretion is °absolute." 4.17. BREACH OF DUTY. In the event the Successor Trustee does not perform properly, each beneficiary may bring a lawsuit against the Successor Trustee to: 4.17.1. Compel the Successor Trustee to perform his duties. 4.17.2. Stop the Successor Trustee from committing a breach of duty. 4.17.3. Compel the Successor Trustee to correct a breach of duty. 4.17.4. Appoint a receiver to take possession of the trust assets and administer the trust. 4.17.5. Remove the Successor Trustee. 4.18. OTHER DUTIES IN GENERAL. Determine the nature and extent of the duties of the Successor Trustee by the terms of this Declaration of Trust. If a situation is not provided for Ruth Compton Slovacek Trust Page 9 in this Declaration of Trust, determine the nature and extent of the duties by the American Law Institute, Restatement of Law, Trusts 2d, and its Appendices. ^ End- of Article ^ Ruth Compton Slovacek Trust Page 10 ARTICLE 5. Powers of Trustee 5.1. POWER TO DELEGATE. The Trustee may delegate to any agent any power granted to the Trustee by this Declaration of Trust. This power to delegate includes, but is not limited to, investment discretion. 5.2. RETAIN INVESTMENTS OF TRUSTOR. The Trustee may keep in the Trust Estate any property received by the Trustee from Ruth Compton Slovacek. The property need not be such property of the character permitted by law for investment of trust funds. 5.3. RETAIN BUSINESS INTERESTS. The Trustee may hold, manage, and operate any property, business, or enterprise acquired at any time under this Declaration of Trust. The profits or losses from any property, business; or enterprise, if any, are chargeable against the Trust Estate and not the Trustee. 5.4. PURCHASE, SALE OR TRADE OF REAL AND PERSONAL PROPERTY. The Trustee may buy, sell, and trade any real or personal property, for the Trust Estate. The property need not be such property of the character permitted by law for investment of trust funds. 5.5. INVESTMENT OR BANK ACCOUNTS. The Trustee may open investment or bank accounts of any type. These accounts include checking accounts, savings accounts, certificates of deposit, treasury notes, treasury bills, totten trust accounts, investment brokerage accounts, and stock brokerage accounts. 5.5.1. The Trustee may open these accounts in the name of the Ruth Compton Slovacek Trust, with Ruth Compton Slovacek, as Trustee, as a signer. Whoever is to become Successor Trustee, may also be a signer on any of these accounts. The Trustee may, at any time, and from time to time, also add any other signers as the Trustee desires. 5.5.2. Only one signature shall be necessary for any validation. These accounts may be in the name of Ruth Compton Slovacek as Trustee of the Ruth Compton Slovacek Trust. Names of those other than a Trustee shall simply be signers on the accounts. This paragraph shall apply to deposits, withdrawals up to and including the whole of the principal amount of any accounts, any inquiries. The Trustee may change any accounts now existing to conform to this authority. 5.5.3. The Trustee may buy, sell, and trade in options, commodities of every nature, precious metals, bonds, stock, and securities, including short sales on margin, uncovered puts and calls, options spreads, option straddles, option combinations, futures contracts, and arbitrage. For such purposes the Trustee may open, maintain and operate r. Margin d~counts v~eitr~ brui.crs. Tl~e Trustee may ;~ie~lge any securities hcici of Nurc;iused by the Trustee as security for loans and advances made to the Trustee. 5.6. MANAGEMENT OF TRUST PROPERTY. In dealing with the Trust Estate, the Trustee has the power, in the Trustee's discretion at any time and from time to time to: Ruth Compton Slovacek Trust Page 11 5.6.1. Employ persons to advise or assist the Trustee in the performance of the administrative duties., Such persons may include, but are not limited to, accountants, attorneys, auditors; investment advisors, investment managers, or other agents, even if they are associated or affiliated with the Trustee. 5.6.2. Sell, convey, exchange, convert, improve, repair, partition, divide, allot, subdivide, create restrictions, easements, or other servitudes, manage, operate, and control. 5.6.3. Lease for terms within or beyond the term of any trust provided for in this Declaration of Trust and for any purpose, including exploration for and removal of gas, oil, and other minerals; and enter into any covenants and agreements relating to the property so leased or any improvements which may be then or later erected on such property. 5.6.4. Encumber or hypothecate for any trust purpose by mortgage, deed of trust, pledge, or otherwise. - 5.6.5. Carry insurance of such kinds and in such amounts at the expense of the Trust Estate as the Trustee may think advisable. 5.6.6. Start or defend at the expense of the Trust Estate litigation with respect to any property of the Trust Estate. The Trustee may employ, for reasonable compensation payable by the Trust Estate, such counsel as the Trustee shall think advisable for that purpose. 5.6.7. Invest and reinvest the Trust Estate in such property as the Trustee, in the exercise of reasonable business judgment, may think advisable. The investment need not be such property as the character specifically permitted by law for the investment of trust funds. 5.6.8. Vote, by proxy or otherwise, any securities with voting rights. 5.6.9. Pay any assessments or other charges levied on any stock or other security. 5.6.10. Exercise or not exercise as the Trustee may think best any subscription, conversion, or other rights or options which may at any time attach or belong, to the holders of any stocks, bonds, securities, or other instruments. 5.6.11. Participate in any plans or proceedings for the foreclosure, reorganization, consolidation, merger, or liquidation of any corporation or organization that has issued securities held by the Trustee in trust. Incident to such participation, to deposit securities with and transfer title or securities on such terms as the Trustee may think in the best interest of the Trust Estate to any protective or other committee established to further or defeat any such plan or proceedings; 5.6.12. Enforce any mortc+:;~•ae, deed of trust or pledge held by the Trustee it trust. To bid and buy at the expense of the Trust Estate any such mortgage, deed of trust, or pledge. 5.6.13. Compromise, submit to arbitration, release with or without consideration, and otherwise adjust any claims for or against the Trust; Ruth Compton Slovacek Trust Page 12 5.6.14. Subject to any limitations expressly set forth in this Declaration of Trust and faithful performance of the Trustee's fiduciary obligations, to do all acts, and exercise all rights and privileges as could be done, taken; or exercised by an absolute owner of the trust property. 5.7. POWER TO BORROW MONEY. The Trustee shall have the power to borrow money for the Trust Estate for any purpose on such terms and conditions as the Trustee may think proper from any person, firm, or corporation, including the power to borrow money on behalf of one trust from any other Trust Estate provided for in this Declaration of Trust. The Trustee may bind the trusts, or any of them, provided for in this Declaration of Trust to repay such borrowed money. 5.8. POWER TO LOAN MONEY TO TRUST. The Trustee may loan or advance Trustee's own funds to the Trust for any trust purpose. The Trustee may charge for such loan or advance the rate of interest that the Trustee, at the time of making such loan or advance, would have charged if such loan or advance was made to a person not connected with such trust having a net worth equal to the value of the principal of such trust. 5.8.1. Any such loan or advance, together with the interest accruing on such loan or advance, shall be a first lien against the principal of the Trust Estate to which such loan or advance is made. 5.8.2. The loan or advance shall be repaid from the income or principal of such Trust Estate as in the discretion of the Trustee appears for the best interests of such trust and its beneficiaries. 5.9. DEALINGS WITH ESTATE OF TRUSTOR. The Trustee may purchase securities or other property from and make loans and advances from the Trust Estate without security to the executor or other representative of the estate of Ruth Compton Slovacek. 5.10. MANNER OF HOLDING TRUST PROPERTY. Unless otherwise prohibited by law, the Trustee may hold securities or any other property in trust under this Declaration of Trust in Trustee's name as Trustee under this Declaration of Trust: 5.10.1. In Trustee's own name without designation showing the Trustee to be Trustee under this Declaration of Trust: 5.10.2. In the name of Trustee's nominee. 5.10.3. Unregistered in such condition that ownership will pass by delivery. 5.11. ALLOCATION OF PRINCIPAL AND INCOME. Except as otherwise specifically _ provided in this Declaration of Trust, the Trustee shall allocate all receipts and payments rQceivpa or~ incurred by Trustee is~ ac:ministering the t~ usis provided'tor in this Dec~laratien of Trust to the income or principal of each such trust in the manner provided by the Revised Uniform Principal and Income Act in effect on the date of this Declaration of Trust in the State in which it is signed. Ruth Compton Slovacek Trust Page 13 5.12. ACCUMULATED INCOME. Any income not distributed to or applied for the benefit of a beneficiary of this Declaration of Trust shall be accumulated and added to the principal of the Trust Estate. 5.13. GIFTS FROM TRUST ESTATE. Ruth Compton Slovacek, or any agent acting under a Power of Attorney from Ruth Compton Slovacek, may revoke this Living Trust in whole or in part to obtain funds or other property to make gifts from Ruth Compton Slovacek. 5.13.1. A revocation made for this purpose may be in any manner satisfactory to the Trustee without compliance with any formality requirements or other limitations imposed either by this Declaration of Trust or by law with respect to revocation of this trust. 5.13.2. i~uth Compton Slovacek, or any agent acting under a Power of Attorney from Ruth Compton Slovacek, may direct the Trustee to deliver any property subject to the revocation directly: to a donee on behalf of Ruth Compton Slovacek.. 5.14. POWER TO TERMINATE TRUST. If the Trustee determines that, because of the size of the Trust Estate, the probable costs of continuing to administer the Trust will exceed the probable benefit, the Trustee may distribute the Trust Estate to the income beneficiary or beneficiaries in proportion to their interests. If there are no income beneficiaries, distribute the Trust Estate as if all conditions precedent to the termination of the Trust have been fulfilled. ^ End of Article ^ Ruth Compton Slovacek Trust Page 14 ARTICLE 6. Administrative Pr®visions 6,1. ACCRUED INCOME AT END OF BENEFICIAL INTEREST. Whenever the right of any beneficiary to payments from the net income or .principal of any trust provided for in this Declaration of Trust shall end, all net income from such trust that is undistributed shall be held, administered, and distributed by the Trustee in the same manner as if such income had accrued and been received by the Trustee after the date the beneficiary's right to receive payments from such trust ended. 6.2. PERIODIC ACCOUNTING. If Ruth Compton Slovacek is not the Trustee, the Trustee sha{I periodically, at least annually, prepare and deliver-an accounting in writing of the Trustee's administration of the assets held under this Declaration of Trust: 6.2.1. If Ruth Compton Slovacek is competent, to Ruth Compton Slovacek. 6.2.1.1. Written approval of any such accounting signed by Ruth Compton Slovacek constitutes an absolute release of the Trustee from any and all liability for any matters stated in such accounting. Failure by Ruth Compton Slovacek to disapprove an accounting within 20 days of receiving the accounting is an approval of the accounting. 6.2.1.2. Such approval binds not only Ruth Compton Slovacek, but also the administrators, executors, successors, and assigns of Ruth Compton Slovacek. 6.2.2. If Ruth Compton Slovacek is not competent, to each Beneficiary. 6.2.2.1. Written approval of any such accounting signed by each Beneficiary constitutes an absolute release of the Trustee from any and all liability for any matters stated in such accounting. Failure by a Beneficiary to disapprove an accounting within 20 days of receiving the accounting is an approval of the accounting. 6.2.2.2. Such approval binds not only Ruth Compton Slovacek, but also the administrators, executors, successors, and assigns of each Beneficiary who approves. 6.3. SPENDTHRIFT PROVISION. Except as otherwise expressly provided in this Declaration of Trust, no beneficiary (other than Ruth Compton Slovacek) of the Trust Estate provided for in this Declaration of Trust shall have any right, power, or authority to alienate, encumber, or hypothecate his or her interest in the principal or income of such trust in any manner, nor shall such interest of any beneficiary be subject to claims of his or her creditors or liable to attachment, execution, or other process of law. ~.-~. I~ir`i "JIENTS TO PEOPLE IJNDE'ri AGE 21. If ut ~y assets v. payments arG deiivcrabie or payable to a person under the age of twenty-one (21) years, until that age the Trustee shall either: 6.4.1. Deliver the assets to the guardian of the child under the Uniform Transfers to Minors Act (or any similar statute in the jurisdiction in which the child resides); or Ruth Compton Slovacek Trust Page 15 6.4.2. Retain the assets and administer the assets or payments as a separate trust. If the Trustee elects to retain the assets, the Trustee shall apply the net income and principal of the Trust Estate as follows: 6.4.2.1. Pay to (or apply for the benefit of) the minor child as much of the net income and as much of the principal of these assets as the Trustee thinks advisable for the child's proper care, support, maintenance, and education. 6.4.2.2. Add to the principal of the share of the Trust Estate any income not paid out. 6.4.2.3. When the child reaches that age, deliver and transfer, free of trust, the assets of the share to the child. 6.4.2.4. If the child dies before reaching that age, immediately distribute the assets in the share according to the terms of this Declaration as if the child had died before the death of the Surviving Trustor. 6.5. PAYMENTS TO INCOMPETENTS. In any case where payment is to be made to an incompetent, the Trustee may make such payment to the guardian for the person or the conservator of the person of such incompetent. 6.6. DEFINITION OF TERMS OF THE TRUST. The phrase °terms of the trust" means the evidence of the intention of Ruth Compton Slovacek with respect to the trust expressed in a manner that admits of its proof in judicial proceedings. 6.7. DEFINITION OF CHILD AND CHILDREN. The term "children" or "child" shall mean blood descendants in the first degree of the parent designated. If a person has been adopted either while an adult or during minority, that person (and that person's descendants) shall be considered as descendants of the adopting parent and of anyone who is by blood or adoption an ancestor of the adopting parent. 6.8. DEFINITION OF "INCOMPETENT"AND "INCOMPETENCY." The lack of competence of Ruth Compton Slovacek, or of any other Trustee or Beneficiary may be evidenced by joint or separate notarized statements of opinion signed either (i) by a licensed physician and the Trustee or (ii) by two (2} licensed physicians. 6.8.1. Third parties may rely on such evidence in dealing with the Trustee or Trustees. 6.8.2. No third party shall have any liability to the Trust Estate or to any Beneficiary under this Declaration of Trust for good faith dealings with the Tr~!stee based upon such reliance. 6.8.3. A certificate signed by the Trustee that the Trustee is acting according to this Declaration of Trust shall fully protect all persons dealing with the Trustee. Ruth Compton Slovacek Trust Page 16 6.9. DISAPPEARANCE OF BENEFICIARY. If the whereabouts of a person named as a beneficiary in this. Declaration of Trust have been unknown to Ruth .Compton Slovacek or the Successor Trustee -for three (3) years before the death of Ruth Compton Slovacek, the Successor Trustee shall distribute any property as if that person had died prior to the death of Ruth Compton Slovacek. . 6.10. SUCCESSOR TRUSTEES. The last person designated as a Trustee has the power to appoint a person to succeed him or her when he or she becomes unable or unwilling to act as Trustee of this Declaration of Trust (but not a Trustee who is then being removed as provided in this Declaration of Trust). 6.11. IF NO SUCCESSOR TRUSTEE APPOINTED. If, for any reason, the last Trustee named in this Declaration of Trust shall resign or become unable, for any reason, to serve as Trustee of the trust provided for in this Declaration of Trust, select the Trustee as follows, in order of priority: 6.11.1. If there is only one then living adult beneficiary of the Trust Estate, by that person; or 6.11.2. If there is more than one then living adult beneficiary, by a majority of the then living adult beneficiaries of the Trust Estate who are then willing and able to participate in the selection; or 6.11.3. If no person is selected by the procedures otherwise provided in this Declaration of Trust, any beneficiary may apply to any court of competent jurisdiction for the appointment of a Successor Trustee. 6.12. RIGHTS AND POWERS OF SUCCESSOR TRUSTEE. Any successor Trustee appointed as provided herein shall, on such appointment being made, immediately succeed to all powers, rights, discretions, obligations, and immunities of the Trustee under this Declaration with the same effect as though such successor were originally named as Trustee in this Declaration. 6.13. JOINT ACTION OF TRUSTEES REQUIRED. If there is more than one Trustee, all acts of the Trustee require the approval and signature of all Trustees acting jointly. 6.13.1. On the resignation, death or incompetency of any Trustee, the remaining Trustee (or Trustees) has the authority to continue to act as Trustee. 6.13.2. Any third party may rely on a resignation, certified death certificate or certification of incompetency by two (2) licensed physicians without further proof of any Trustee's authority. 6.13.3. If there is more than one Trustee, the affidavit of any Trustee is conclusive evidence to third parties that all Trustees authorized any particular act. 6.13.4. The Trustees must resolve any issue they are unable to resolve promptly by a majority vote. Ruth Compton Slovacek Trust Page 17 6.1.3.5. Resolve all disputes that the Trustees cannot resolve by majority vote by binding arbitration. Conduct the arbitration according to the following procedure: 6.13.5.1. Any Trustee may demand an arbitration in writing within ten (10) days after the controversy arises. 6.13.5.2. The Demand for Arbitration shall state: 6.13.5.2.1. The name, address and telephone number of the arbitrator designated by the Trustee demanding the arbitration. 6.13.5.2.2. The matter in controversy. 6.13.5.3. Within ten (10) days after the Trustee demanding arbitration serves a Demand for Arbitration upon each other Trustee, each Trustee served shall serve a response upon the Trustee demanding arbitration. Each Response to Demand for Arbitration shall state: 6.13.5.3.1. The name, address and telephone number of the arbitrator designated by the responding Trustee. 6.13.5.3.2. The matter in controversy. 6.13.5.4. If any Trustee does not designate an arbitrator, the Arbitration Committee of the American Arbitration Association shall promptly designate the arbitrator. 6.13.5.5. If the number of arbitrators selected by this process is an even number, the Arbitration Committee of the American Arbitration Association shall promptly designate one (1) additional arbitrator. 6.13.5.6. The arbitration shall: 6.13.5.6.1. Be held at the location set by the Arbitration Committee of the American Arbitration Association: 6.13.5.6.2. Be held upon thirty (30) days notice to all parties. 6.13.5.6.3. Use the arbitration rules and procedures of the American Arbitration Association. 6.13.5.6.4. Use the law of evidence of the jurisdiction in which Ruth Compton Slovacek was a resident on the death. 6.13.5.5.5. Be concluded ~vitnin five (5) days ~~-~fess otherrv:se ordered by the arbitrators. 6.13.5.6.6. The award shall be made within twenty-five (25) days after the close of the submission of evidence. Ruth Compton Slovacek Trust Page 18 6.13.5.6.7. An award rendered by a majority of the arbitrators shall be final and binding on all Trustees. 6.13:5:6:8 Any Trustee may enter judgment on such award. in the highest court, state or federal having .jurisdiction. 6.13.5.6.9. The Trustees who do not prevail shall pay for all costs of the. arbitration, including, but not limited to, attorneys fees. 6.13.5.7. Each Trustee, by accepting the office of Trustee, agrees that this arbitration procedure shall be a complete defense to any suit, action, or other proceeding by whatever name or character in any federal or state court, or before any administrative tribunal with respect to any dispute involving this Declaration of Trust, or the duties or decisions of any Trustee arbitrable as stated here. 6.14. DIVISION OR DISTRIBUTION OF ASSETS THEMSELVES OR CASH. The decision of the Trustee as to what is a proper division of the assets of the Trust Estate shall be binding on all persons in any manner having an interest in any part of the Trust Estate. On any division of the assets of the Trust Estate into shares or partial shares, and on any final or partial distribution of the assets of the Trust Estate, the Trustee may: 6.14.1. Divide and distribute the assets themselves. 6.14.2. Divide or distribute undivided interests in the assets themselves. 6.14.3. Sell all of the assets and make division or distribution in cash. 6.14.4. Sell any part of the assets and make division or distribution partly in cash and partly of the assets themselves. 6.15. INTERPRETATION OF ANY PROVISION. Use the American Law Institute, Restatement of the Law, Trusts 2d., and its Appendices, to interpret or construe the terms of this Declaration of Trust. 6.16. INVALIDITY OF ANY PROVISION. Should any provision of this Declaration of Trust be or become invalid or unenforceable, the remaining provisions of this Declaration of Trust shall be and continue to be fully effective. 6.17. NO-CONTEST. Every beneficiary of this Declaration of Trust, alone or in conjunction with any other person or persons, who contests the validity of any provision of this Declaration of Trust shall lose his or her status as a beneficiary. All assets that otherwise would have been given to that person shall lapse. The Trustee shall distribute the Trust Estate as thougn thai person had died be~ore the death ~f Ruth c;ompton Siovacek leaving no living descendants. 6.18. NOTICES. Any notices or other communications required or permitted by this Declaration to be delivered or served on the Trustee shall be deemed properly delivered to, served on, and received by the Trustee when personally delivered to the Trustee, or if a Ruth Compton Slovacek Trust Page 19 corporate trustee, to a trust office of Trustee, or, in lieu of such personal service, when deposited in the official mail of the government, certified, postage prepaid, addressed to the Trustee at the Trustee's last known address. 6.19. TAX AND OTHER ELECTIONS. The Trustee shall not be.liable to any beneficiary whose interest has been diminished by any tax election, or other election, made by the Trustee. 6.20. COMPENSATION OF TRUSTEE. The Successor Trustee shall be reimbursed for all reasonable expenses incurred in the management and protection of the Trust Estate. The Successor Trustee may charge reasonable compensation for services: 6:20.1. If a professional Trustee, in accordance with its standard schedule of charges. 6.20.2. If not a professional Trustee, in accordance with the standard schedule of charges of any bank trust department licensed to do business in-the state in which the Trustor is a resident, in effect at the time the services are performed or at the end of the Trust. ^ End of Article ^ SIGNED on APB 1 2 1993 , in the County of Maricopa, State of Arizona. x~~~i ~ Signature of Ruth Compton S/ovacek Trustor X .~ Signature of Ruth Trustee ~~~ pton Slovace{~ Ruth Compton Slovacek Trust Page 20 ACKNOWLEDGMENT State of Arizona County of Maricopa APR 1 2 1993 _ On ,before me, a Notary Public, personalty appeared Ruth Compton Slovacek, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument (Declaration of Trust) and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), a at by his/her/their signature(s) on the instrument the person(s), or the entity upo%~IIf w ch tf~ person(s) acted, uted the instrument. ~c Public ,,~~ z+"~ T ' ~ ~ CLAUDINE A. MOR21S t - °~ Notary Public-Arizc;na -~ ;~ ~ 4`=~ ~ MARICCFA CO;INTY Crrr mission Ex M ires ;, , , y p ~: ~ . Ruth Compton Slovacek Trust Page 21 SCHEDULE 1 Ruth Compton Slovacek Trust - - (Property Tran~f~rred to Trust} 1. All property, real, personal, or mixed, (subject to any liens or encumbrances) now owned by Ruth Compton Slovacek, whether held in the apparent form of sole ownership, partnership, joint tenancy, tenancy in common or in any other manner whatsoever, including, but not limited to: 1.1. Jewelry. 1.2. Household furniture and furnishings. 1.3. Silverware. 1.4. Books. 1.5. Paintings, pictures, and other works of art. 1.6. Clothing, and all other personal effects. Schedule 1 to Page 22 Ruth Compton Slovacek Trust _ Inventory Ruth Compton Slovacek Trust TO ADD an asset to the Inventory, select the first available blank line. In column 1, describe the asset clearly enough to identify it. In column 2, enter the date. In column 3, sign your name. TO DELETE an asset from the Inventory, select the first available blank line. In column 1, write the words "Delete the asset described on Page ,Line , of this Inventory:" In column 2, enter the date. In column 3, sign your name. Draw a line through the description of the deleted asset, and initial. The following assets are in the Ruth Compton Slovacek Trust: Inventory of Ruth Compton Slovacek Trust Page