This excerpt taken from the SIRI 8-K filed Nov 12, 2009.
Section 1. Establishment Of Trust
(a) Company hereby deposits with Trustee in trust $2,622,699 (the Trust Amount), which shall become the principal of the Trust to be held, administered and disposed of by Trustee as provided in this Trust Agreement, subject to Section 1l(b).
(b) The Trust shall be irrevocable.
(c) The Trust is intended to be a grantor trust, of which Company is the grantor, within the meaning of subpart E, part I, subchapter J, chapter 1, subtitle A of the Internal Revenue Code of 1986, as amended, and shall be construed accordingly.
(d) The principal of the Trust, and any earnings thereon shall be held separate and apart from other funds of Company and shall be used exclusively for the uses and purposes as herein set forth. Executive and his beneficiaries shall have no preferred claim on, or any beneficial ownership interest in, any assets of the Trust. Any rights created under the Agreement and this Trust Agreement shall be mere unsecured contractual rights of Executive and his beneficiaries against the Company. Any assets held by the Trust will be subject to the claims of
- 1 -
Companys general creditors under federal and state law in the event of Insolvency, as defined in Section 3(a) herein.
(e) The Company may at any time, or from time to time, make additional deposits of cash or other property acceptable to Trustee in the Trust to augment the Trust Amount to be held, administered and disposed of by Trustee as provided in this Trust Agreement.