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T List of Clauses Tax AssessmentClause 1-Husband to pay, except Wife to be responsible for amounts attributable to misinformation or lack of information by Wife Clause 2-Payable by party to whom tax is attributable Tax Assessment; Mutual Representations as to Outstanding Assessments and Pending Audits Tax Deductions; Entitlement to Tax Deductions: Sharing of Deduction for Charitable Contributions Tax Indemnification; Indemnification on Sale of Marital Home-Husband to indemnify Wife for capital gains tax on sale of marital home Tax Indemnification; Mutual Indemnification Clause 1-Parties to indemnify each other against any loss caused by false return Clause 2-Husband to pay deficiency, except when caused by failure of Wife to disclose income; each party indemnifies other Tax Indemnification; Unilateral Indemnification Clause 1-Husband warrants that he has paid all taxes; Husband will pay any deficiency assessment and indemnify Wife; Husband entitled to any refund Clause 2-Husband warrants all taxes have been paid and holds Wife harmless for any deficiency: Wife to cooperate in connection with any previously filed return; refunds property of Husband Clause 3-Husband to indemnify Wife from any capital gains tax or other tax resulting from transfer of property according to divorce agreement Tax Law; Changes in Affecting Deductibility of Maintenance Tax Proceedings; Cooperation Between Parties-Parties to cooperate in connection with any tax proceedings Tax Refund; Amended Returns; Division of Proceeds After Payments to Accountants Tax Refund; Attributable to Party Who Overpaid Taxes Tax Refund; Parties to Share Equally Tax Shelter; Establishment of Escrow Fund to Receive Tax Benefits and Assume Tax Liabilities of Shelter in the Name of One of the Spouses Tax Shelter Investment Taxation; Reimbursement for a Transfer of Property-Husband to indemnify Wife from any taxes resulting from transfer of property to Wife Taxes; Warranty of Payment-Husband warrants he has paid all taxes due Telephone Access to Children Testamentary Disposition for Benefit of ChildrenClause 1-Calculation of portion of Husband's estate to be left to children Clause 2-Wife to execute will providing that a portion of funds given her by Husband are to go to the children Clause 3--Mutual promise to leave children of the marriage not less than they would be entitled to if either parent died intestate Testamentary Disposition for Benefit of Children of Prior Marriage-Share of marital home to Husband's children of prior marriage Testamentary Disposition for Children's Education Testamentary Disposition; Mutual Covenants to Make a Will for Benefit of Children Testamentary Disposition of Investment Property-Husband to leave investment property to child Testamentary Disposition; Revocation of Prior Wills Testamentary Trust Insuring Necessary Funds for Support Obligation Transportation; Responsibility for Children and Costs on Visitation-Wife to pay all airline costs; shared responsibility for travel to and from airport Transportation; Responsibility on Exercise of Visitation Rights-Husband bears responsibility of picking up and returning children Travel-Limitation on taking children outside of United States Trust Fund for Benefit of Child Clause 1-Trust to be established subsequent to execution of Agreement Clause 2-Trust to be established contemporaneously with execution of Agreement Trust Fund for Education Expenses Clause 1-Establishment of Clifford Trust for benefit of children Clause 2-Husband as trustee for existing trust established for benefit of children; use of principal and interest for children's benefit Clause 3-Trust to provide continued benefits for children after Husband's death; principal may not be used for college expenses without Wife's consent Trust Fund; Pay Out Based on Life Expectancy of Beneficiary SpouseT Text of Clauses Tax Assessment (See also: Tax Indemnification) Clause 1-Husband to pay, except Wife to be responsible for amounts attributable to misinformation or lack of information by Wife: The parties agree as follows in respect of any federal and state income tax returns heretofore or hereafter jointly filed by them for any tax year. If there shall be a deficiency assessment with respect to any such joint return for any tax year for which a joint return was filed, or shall hereafter be filed, the Husband shall duly pay such amount as shall be determined to be due thereon and any interest or penalties with respect thereto and any expenses in connection with any contest by the Husband of the assessment, except that the Wife shall be responsible for any tax, interest and penalties solely attributable to any adjustment required affecting income and expenses of the Wife based upon misinformation provided by, or lack of documentation on the part of the Wife.Clause 2-Payable by party to whom tax is attributable:If in connection with any joint return heretofore or hereafter filed by the Husband and Wife, there is any assessment by any taxing authority, the amount ultimately determined to be due thereon, including penalties, interest, etc., shall be paid by the party whose income the tax is attributable or by the party who failed to reveal said income. Tax Assessment; Mutual Representations as to Outstanding Assessments and Pending Audits (See also: Audit-Tax Indemnification) The Wife and Husband agree as follows with respect to any federal, state or local income tax returns heretofore or hereafter jointly filed by them for any tax year: (1) There are no outstanding tax assessments; federal, state, city or otherwise against either of them, jointly or individually, nor is any tax deficiency proceeding pending or threatened against either of them, jointly or individually. (2) There is no audit pending with respect to any joint returns filed by the Wife and the Husband. Tax Deductions; Entitlement to (See also: Child Deduction) Payments made prior to the date hereof for items which are deductible on income tax returns (such as interest, taxes, medical) shall be deductions to which the party who made such payment shall be exclusively entitled on income tax returns. Payments made hereafter by the Husband to the extent that such payments shall not have been paid as Wife's maintenance hereunder, for items which are deducted on income tax returns (such as interest, taxes, medical) shall be deductions to which the Husband shall be exclusively entitled on income tax returns. Payment made hereafter by the Wife, including without limitation payments made by the Wife from the Wife's maintenance, for items which are deductible on income tax returns, shall be deductions to which the Wife shall be exclusively entitled on income tax returns. Tax Deductions; Sharing of Deduction for Charitable Contributions The parties shall share equally any tax deductions available by reason of any charitable contributions made in 19__ by either party at any time of any of the furniture, furnishings, household goods and effects, artwork and antiques owned by either or both of the parties prior to the execution of this Agreement. Simultaneously with the execution of this Agreement, the parties shall provide each other with all information and documents in order to enable them to determine the value of all applicable charitable contributions made from January 1, 19__ until the date of this Agreement, and shall, no later than January 31, 19__ provide all such information and documents for the period from the date of this Agreement through December 31, 19__. Tax Indemnification; Indemnification on Sale of Marital Home-Husband to indemnify Wife for capital gains tax on sale of marital home (See also: Marital Home; Costs of Sale) In the event the Wife shall ever become liable for capital gains taxes on the sale of the marital residence, the Husband shall reimburse her for any capital gains taxes or other taxes in connection thereto paid, and indemnify the Wife and hold her harmless for any capital gains taxes or other taxes in connection thereto assessed but not paid. Tax Indemnification; Mutual Indemnification (See also: Audit-Tax Assessment)Clause 1-Parties to indemnify each other against any loss caused by false return: Each party hereby agrees to hold the other party harmless from, and to indemnify the other party against, any loss, damages, expense, or liability, including deficiency assessments, penalties and interest, which such party may incur or be subject to by reason of any false, misleading or incomplete statement made or to be made, failure or neglect to disclose any income which should have been or should be included, fact or information, whether or not false, misleading or incomplete, furnished or to be furnished, or act performed by or to be performed by such other party or any failure to make a statement, furnish a fact or information or perform an act with respect to any joint federal, state or local income tax return filed or to be filed by the parties, or any adjustment or amendment thereto. Clause 2-Husband to pay deficiency, except when caused by failure of Wife to disclose income; each party indemnifies other: If in connection with any joint federal, state or local income tax returns heretofore or thereafter filed by the Husband and the Wife there is a deficiency assessment, the amount ultimately determined to be due thereon, including penalties, interest, etc., shall be paid by the Husband, unless and to the extent that the same has been caused by income of the Wife or the failure of the Wife to disclose any income which should have been included on such returns, and the Husband, to the extent that same has not been caused by any such failure, hereby indemnifies and agrees to save the Wife harmless against any such assessment penalty or interest, and the Wife hereby indemnifies and agrees to save the Husband harmless against any such assessment, penalty or interest caused by her such failure. Tax Indemnification; Unilateral Indemnification (See also: Audit-Tax Assessment) Clause 1-Husband warrants that he has paid all taxes; Husband will pay any deficiency assessment and indemnify Wife; Husband entitled to any refund: The parties have heretofore filed certain joint income tax returns.(1) The Husband represents and warrants to the Wife that he has heretofore duly paid all income taxes due on such returns; that he does not owe any interest or penalties with respect thereto; that no tax deficiency proceeding is pending or threatened against him; and that no audit is pending with respect to any such return. (2) If there is a deficiency assessment on any of the aforesaid returns, the Husband shall give the Wife immediate notice thereof in writing. He shall pay the amount ultimately determined to be due, together with interest and penalties, if any, as well as all expenses that may be incurred if he decides to contest the assessment. (3) The Husband shall hold the Wife harmless from any claim, damage or expense arising out of any such deficiency assessment. (4) If there is any refund on any of the aforesaid returns, it shall belong to the Husband Clause 2-Husband warrants all taxes have been paid and holds Wife harmless for any deficiency; Wife to cooperate in connection with any previously filed return; refunds property of Husband: The Husband hereby warrants and represents that to the best of his knowledge all federal, state, local and foreign income and property taxes on all joint tax returns heretofore filed by the parties have been paid, and that no interest or penalty is due with respect thereto, and that no tax deficiency proceeding is pending or threatened thereon. The Husband hereby indemnifies and holds the Wife harmless from any claim on account of additional tax, interest, penalty or adjustment on any joint return heretofore filed, except to the extent that any such claim or liability is attributable to income of the Wife not known to the Husband and not reflected in such return, which claim or liability on account of any income of the Wife shall be paid by the Wife.The Wife hereby agrees to execute any waiver, amended return or other instrument which may be or become necessary in connection with any joint return heretofore executed by the parties, and agrees to furnish all information and cooperate with the Husband, his accountants and attorneys, in connection with any such joint return, amended return, and audit or other proceedings in connection therewith. The Husband shall conduct any such audit or other proceeding by attorneys and accountants of his own selection and at this own expense. The Husband shall furnish to the Wife a copy of any amended return, adjustments and consent thereto with respect to any such return, audit or other proceeding with respect to joint tax returns. Any refund with respect to any joint tax return of the parties shall be the sole property of the Husband, and the Wife hereby appoints the Husband her attorney-in-fact to endorse and negotiate any tax refund check drawn to the order of the parties jointly. Clause 3-Husband to indemnify Wife from any capital gains tax or other tax resulting from transfer of property according to divorce agreement: If the event that the Wife is required to pay any capital gains taxes or other taxes, interest or penalties of any sort, kind or nature resulting from the transfer of any right and interest in the aforementioned real, or any other, properties, pursuant to the terms of this Agreement, then in such event, the Husband shall hold the Wife safe and harmless and indemnify her from any capital gains tax or any other tax, interest or penalties, legal or other professional fees she may be required to pay in connection with said transfers, within five business days of her submitting a paid or unpaid bill for said fees, charges taxes, expenses, etc. Tax Law; Changes in Affecting Deductibility of Maintenance The Wife has been advised and acknowledges that all unallocated alimony and support payments being paid to her for her and the children's support and maintenance pursuant to Articles __ and __ are separate maintenance periodic payments including and intended to be included within the income of the Wife within the meaning and intent of the United States Internal Revenue Code. Such amounts are deductible from the Husband's gross income pursuant to the provisions of the United States Internal Revenue Code. In the event of any court decision, Internal Revenue regulations, ruling or determination, or in the event that at any time after the date hereof the laws applicable to the payments by the Husband to the Wife under said Articles __ and __ hereof are changed, and such decision, regulation, ruling determination or statutory amendment results in the Husband being prohibited or prevented from deducting, in whole or in part, on his income tax return, any or all of the payments of such monies paid to the Wife under said Articles __ and __, or such deduction is disallowed, wholly or partially, payments required to be made herein by the Husband to the Wife for support shall be renegotiated by the parties, and should they fail to agree then said issue shall be submitted to the court for determination as to the amount of the reduction of the Husband's obligation by reason of the aforesaid tax changes. Tax Proceedings; Cooperation Between Parties-Parties to cooperate in connection with any tax proceedings (See also: Audit; Cooperation in Preparation for; Mutual Warranties that Taxes Have Been Paid; Unilateral Indemnification) The Husband and the Wife agree to cooperate with each other, their respective accountants and counsel in connection with any proceedings regarding taxes. Such cooperation shall be as full as required by the circumstances. Tax Refund; Amended Returns; Division of Proceeds after Payments to AccountantsFor tax years 20____ and 20____ wherein the parties propose to file amended returns, the parties shall divide the proposed refund in the following manner: (1) The Wife's accountant shall be paid his bill for reviewing said returns upon submission of said bill to the Husband's counsel. The Husband shall reimburse the Wife for her accountant fees for her individual tax filings upon submission of said bill to the Husband's counsel. (2) The Husband shall be reimbursed for his accountant's bill for preparation of said returns upon submission of said bill to the Wife's counsel. (3) The Husband shall be reimbursed for the payment of the taxes due on all the children's respective returns. The balance remaining, after the above payments and reimbursements made, shall be divided ___% to the Husband and ____% to the Wife. Tax Refund; Attributable to Party Who Overpaid Taxes If the parties, with respect to any tax heretofore or hereafter paid under a joint return, are entitled to a tax refund or credit and said refund or credit is attributable directly to the overpayment of taxes by one party, the same shall belong to that party. Tax Refund; Parties to Share Equally If the parties, with respect to any tax heretofore or hereafter paid under a corporate income tax return, are entitled to a tax refund or credit, the parties shall share equally in the overpayment. Tax Shelter; Establishment of Escrow Fund to Receive Tax Benefits and Assume Tax Liabilities of Shelter in the Name of One of the Spouses (1) The Husband shall establish an interest bearing account at a financial institution mutually agreed upon by Husband and Wife no later than ____, 19 ___. Such account shall be opened with a deposit of two hundred thousand dollars ($200,000) to be supplied by the Husband. (2) An escrow fund shall be established to monitor the tax consequences associated with certain investments that are in the name of the Husband only, as follows: (a) The "XX" tax shelter (b) The "XXX" tax shelter (c) The "XXXX" tax shelter (3) ______, or a replacement to be named upon agreement of the parties, shall serve as escrow agent for the fund. (4) The Husband shall retain a Certified Public Accountant (CPA) to annually prepare two sets of federal, state and city tax returns during each year the escrow fund shall remain in existence. It shall be the obligation of the Husband to file original returns with the appropriate tax authorities. The second set shall be sent to the escrow agent. The tax returns are to be prepared by April 15 of each year, subject to an extension of up to two months. (5) The Husband shall submit to the escrow agent along with the tax returns a statement prepared by the CPA (Accountant's Statement) that sets forth with respect to each tax shelter: (a) the amount of cash received by the Husband; (b) the amount of cash paid by the Husband pursuant to the relevant partnership agreements; (c) the amount of tax benefits or liabilities allocable to the Husband. (6) The information in the Accountant's Statement shall form the basis for any payments to or from the escrow fund. The sum in 5(a) shall be reduced by the sum in 5(b), which will be modified by any tax benefits received or liabilities paid by the Husband as disclosed in 5(c). If the final figure is positive, the Husband shall submit that sum of money to the escrow agent, along with the tax returns and Accountant's Statement, for deposit into the escrow account. If the final figure is negative, the escrow agent shall pay that amount from the fund to the Husband, to the extent available in the fund, within ten (10) business days of receipt of the statement.(7) The escrow agent shall annually report to the Husband and Wife the amount of interest income earned by the escrow fund. The Husband and Wife shall each include one-half of that amount as interest income on their respective income tax returns. (8) The escrow fund shall continue until the tax returns are completed and the financial exchanges outlined above have taken place for the years 19____ through 20____. Thereafter, the escrow agent shall distribute equally to the Husband and Wife any money remaining in the fund, and the fund will be terminated. Tax Shelter Investment The parties acknowledge that they have acquired during the marriage an interest in what is commonly known as XYZ Investment which represents an interest in a shopping plaza located at _____________, in the State of _______of which the parties possess a __% interest with a net value employed by the parties for the purposes of this Agreement of approximately $__________. The parties shall equally share in all profits from the XYZ Investment and shall, likewise, be equally responsible for any and all reasonable and necessary expenses of the investment which are not paid for by the rents, dividends or other income earned by the XYZ Investment. The parties agree that the Husband shall be reimbursed for his investment of $___________ into the XYZ Investment during the course of the matrimonial action between the parties, provided that he presents documentation demonstrating the investment of such funds. The parties agree that the Husband shall further be reimbursed for any future investment of capital into the XYZ Investment, provided that such investments are mandatory and are documented to the Wife. Any and all such reimbursements owing to the Husband shall be paid to the Husband at the time of the closing of the sale of the XYZ Investment and shall be paid to him prior to the division of the sale proceeds between the parties. Taxation; Reimbursement for a Transfer of Property-Husband to indemnify Wife from any taxes resulting from transfer of property to Wife In the event that the Wife is required to pay any capital gains taxes or other taxes, interest or penalties of any sort, kind or nature resulting from the transfer of any right and interest in the aforementioned real, or any other, properties, pursuant to the terms of this Agreement, then in such event, the Husband shall hold the Wife safe and harmless and indemnify her from any capital gains tax or any other tax, interest or penalties, legal or other professional fees she may be required to pay in connection with said transfers, within five business days of her submitting a paid or unpaid bill for said fees, charges, taxes, expenses, etc. Taxes; Warranty of Payment-Husband warrants he has paid all taxes due (See also: Audit-Joint Returns-Tax Assessment-Tax Indemnification) The Husband warrants and represents that he has paid all federal, state and local taxes due in connection with any joint tax returns heretofore filed by the parties. Telephone Access to Children The Wife hereby agrees that the Husband shall have access to the children by telephone on a daily basis between the hours of 6:00 p.m. and 9:00 p.m. for a period of thirty minutes. If any child shall become ill, but not confined to a hospital or similar facilities, the Husband, taking into consideration the physical well-being and condition of the child, shall have unlimited access by telephone to that child. The exercise by the Husband of the telephonic communication right herein above set forth shall be conducted in such a manner as not to interfere with: (1) the educational and religious growth of the children; (2) the occupational requirements of the Wife; and (3) the normal and day-to-day living arrangements of the Wife and children. Further, the exercise by the Husband of the telephone communication rights herein above set forth shall not be conducted in a manner which shall harass or annoy the Wife. Testamentary Disposition for Benefit of Children Clause 1-Calculation of portion of Husband's estate to be left to children The Husband shall provide in his Last Will and Testament that the parties' children shall collectively inherit not less than fifty percent of the Husband's net estate as defined as the gross estate as calculated for federal estate tax purposes less estate debts and administration expenses and federal and state estate, inheritance and succession taxes imposed on such estate, plus any interest and penalties thereon. Clause 2-Wife to execute will providing that a portion of funds given her by Husband are to go to the children: The Wife shall provide in an effective will for the benefit of minor children of the marriage that at least $______ of the assets transferred to her by the Husband hereunder or the proceeds thereof shall pass directly by will or devise or indirectly through a trust for their benefit to the exclusive benefit of one or more of their children. Clause 3--Mutual promise to leave children of the marriage not less than they would be entitled to if either parent died intestate: Each party at all times shall have in effect a Last Will and Testament wherein and whereby the issue of the marriage are to be named as legatees, distributees, heirs and beneficiaries in an amount not less than the children would have received in the event the Husband or Wife dies intestate, without a spouse. For the purposes of this Article, the children shall share what is or would be their intestate percentage share on all property owned by the Husband or the Wife, whether owned individually or jointly with others, with or without the rights of survivorship. This provision shall remain in full force and effect during the minority of each child. Any other children born to either party hereto shall be treated equally for purposes of this Article. Testamentary Disposition for Benefit of Children of Prior Marriage-Share of marital home to Husband's children of prior marriage (See also the various headings under Marital Home) If the Wife dies after the Husband and while in possession of the marital home, she agrees to leave to such of the Husband's children from his prior marriage as shall survive her in equal share: (1) One-half of her interest in said home; or (2) If the Wife shall have sold the home prior to her death, one- half of her net proceeds from such sale ("net proceeds" defined as net of any and all income taxes payable by her in respect of the proceeds). If the Wife should survive any of the Husband's children from the prior marriage, the issue who survive her of any such child who does not survive her are to take, per stirpes, the share which such deceased child would have taken had that child survived her. Testamentary Disposition for Children's Education (See also: Education of Children-Trust Fund for Benefit of Child)It is agreed and understood between the parties that the Husband shall prepare a new will which shall bind his estate to pay for all post-high school education costs of the children. Testamentary Disposition; Mutual Covenants to Make a Will for Benefit of Children (See also: Life Insurance in Lieu of Testamentary Disposition) Clause 1:In the event of either party's death, each agrees to leave and bequeath one-half of his or her Estate equally to the two children (one-quarter per child). Such bequest shall constitute a first lien on each party's estate. Each party further agrees within thirty days of the execution of this Agreement, to execute a Will with the above stated provisions in favor of the two children. Clause 2: The Husband and Wife shall each forthwith make and keep in full force and effect a Last Will and Testament bequeathing and devising to the children of the parties equally not less than 50% of their respective estates, subject to the following: (1) If either child predeceases the Husband or Wife, the share such child would have been entitled to receive if living at the time of the Husband's or Wife's death shall go to the living issue, if any, of said child, and in default of such issue, shall be added to the surviving child's share; (2) The term "estate" as used herein shall mean the Husband's or Wife's gross estate, less funeral and testamentary expenses, debts and estate taxes; (3) The Wills required hereunder shall be executed by the parties within sixty days of the date of this agreement and each party shall promptly notify the other party in writing that such a will has been executed. Testamentary Disposition of Investment Property-Husband to leave investment property to child The Husband shall purchase an investment property for his own use and enjoyment during his lifetime, which property he shall bequeath to the child. Contemporaneously with the execution of this Agreement, the Husband's attorney ________ shall display to the Wife's attorney _______ the Husband's last will and testament memorializing the commitment to bequeath said investment property to the child. Testamentary Disposition; Revocation of Prior Wills The parties hereby revoke all prior testamentary dispositions made by one party in favor of the other and each party does hereby renounce any such dispositions or special bequests under any Last Will and Testament heretofore executed by the other. Testamentary Trust Insuring Necessary Funds for Support Obligation (1) To insure that in the event of the Husband's death funds will be available to pay for the expenses undertaken by him pursuant to Article ____ hereof, the Husband shall establish and fund a Trust in his Will. Such trust shall include, at a minimum, a death benefit of $500,000. This provision is a minimum sum and is intended only to guaranty a continuation of the support payments which the Husband is obligated to make pursuant to Article ____ hereof. (2) The Trust will provide that the trustee may in his or her discretion utilize income and, if necessary, principal, to pay any expenses that would have been the Husband's obligation to pay under this Agreement. (3) Promptly after the execution of this Agreement and upon the Wife's request therefor, the Husband shall deliver to the Wife the dispositive provisions of his Will evidencing his compliance with his obligation, and the Husband agrees that at any reasonable time, upon request, but not more than once per year, he will provide the Wife either with a sworn statement that he is in compliance with the foregoing, a copy of the dispositive provisions of his Will evidencing his compliance with the foregoing, or certification by an attorney that the Will is in existence and contains the trust disposition that is compliance with this Article. Transportation; Responsibility for Children and Costs of Visitation-Wife to pay all airline costs; shared responsibility for travel to and from airport (See also: Moving-Visitation) The Wife shall be responsible for delivering the children, in California, to the commercial airline to be used for transporting the children to New York, and shall be responsible for all costs of such transportation, from California to New York and for the return trip from New York to California. The Husband shall be responsible for picking up the children from the airport in New York and for taking them to the airport for the return trip to California. The Husband shall not be responsible for any cost incurred to fly the children from New York to California or from California to New York. The responsibility for the airline costs, referred to in the instant paragraph shall apply only to the visitation, by the children with the Father, contained in Paragraph ____ hereof. Transportation; Responsibility on Exercise of Visitation Rights-Husband bears responsibility of picking up and returning children (See also: Children Support; Visitation-Joint Custody-Split Custody-Visitation) When exercising his visitation rights, the Husband shall pick the children up at the residence of the Wife and shall return the children thereto at the termination of such period, unless the parties make other arrangements. Travel-Limitation on taking children outside of United States Neither party shall take the children outside the United States of America without the consent of the other, which consent, however, shall not be unreasonably withheld. Trust Fund for Benefit of Child (See also: Life Insurance Trust-Testamentary Disposition for Children's Education) Clause 1-Trust to be established subsequent to execution of Agreement: The Husband agrees to set up a trust fund for the benefit of the parties' child in the sum of $____. The trust shall provide that the principal shall be payable to the child in a tax-free lump sum payment when the child attains the age of thirty years. Clause 2-Trust to be established contemporaneously with execution of Agreement: Upon execution of this Agreement, the Husband shall sign a trust indenture calling for the payment of the sum of $____ to the trustee of a trust being created by the Husband contemporaneously with the execution of this Agreement with the Husband as Grantor and ______ as Trustee for the sole benefit of ______, the child of the Husband and Wife. The Wife is to be named as guardian of the property of the child in said trust. The trust instrument shall provide for a return on principal of at least 8%, payment of 90% of the net income to the beneficiary through the guardian of the property at least quarterly. In the event the child marries and leaves a surviving spouse, the net income shall be paid to the surviving spouse for the life of the surviving spouse and the principal shall revert to the estate of the Husband. The undistributed income shall be added to principal for the first ten years of the trust, after which time the entire net income shall be distributed. The trust shall also provide for invasion of principal for the child's benefit in the event of a medical emergency. A copy of the trust is annexed hereto as an Exhibit. Trust Fund for Educational Expenses (See also: Education of Children- Testamentary Disposition for Children's Education-Trust Fund for Benefit of Child)Clause 1-Establishment of Clifford Trust for benefit of children: It is agreed and understood between the parties that the Husband has established Clifford Trusts to fund the education of the children. The Husband further represents to the Wife that each individual Clifford Trust shall be funded with not less than $____. It is further agreed and understood between the parties that should the Wife die prior to all of the children completing their post-high school educations that the Wife agrees that she shall bind her estate to pay one-half to the children any amount that is necessary for them to compete their education to the extent that the funds contained in the Clifford Trusts established by the Husband for said children are insufficient to meet all of their post-high school educational needs. Clause 2-Husband as trustee for existing trust established for benefit of children; use of principal and interest for children's benefit: The parties acknowledge that the Husband is the Trustee of a Trust Indenture dated ____, 19__ established for the benefit of the children by the Husband's parents, and the parties agree that the Husband, as the sole Trustee and in his sole discretion as provided in said Trust, may use and apply the principal and interest of such Trust towards the payment of the children's education (including religious education) and summer activities to the extent permitted by the terms of the Trust instrument. Clause 3-Trust to provide continued benefits for children after Husband's death; principal may not be used for college expenses without Wife's consent: All obligations of the Husband for the support and education expenses of the children shall terminate on the death of the Husband. However, the obligations of the Trust described in Article __ shall continue to provide benefits to or for the children notwithstanding the Husband's death, if the terms of the Trust instrument so provide or allow. Anything in this paragraph to the contrary notwithstanding, unless with the Wife's prior consent, the Husband shall not use any principal of the Trust toward the Payment of the children's college expenses pursuant to Article ____. Trust Fund; Pay Out Based on Life Expectancy of Beneficiary Spouse During the term of the trust, the trustee shall pay or apply to or for the use of the Wife, at least quarterly: (1) the net income of this trust; and (2) the "Amortization Amount," as defined in Paragraph 3. The trustee shall distribute the Amortization Amount from the principal of the trust hereunder. (3) As used herein, the "Amortization Amount" for a taxable year shall be an amount equal to the net fair market value of the assets of this trust determined on the first business day of the taxable year for which the Amortization Amount is to be made divided by the number of years remaining until the Wife attains the age of ninety (90) years. The Amortization Amount for any year which is less than a full calendar year shall be pro rated based upon a 365 day year. For example, if the net fair market value of the assets of this trust on January 2 of Year X is $1,000,000 and the Wife attains the age of seventy (70) in Year X, then the Amortization Amount for Year X is $50,000, payable in equal quarterly installments. (4) If for any year the net fair market value of the trust assets is incorrectly determined, then within a reasonably period after the value is finally determined, the trustee shall pay to the Wife (in the case of an under valuation) or receive from the Wife (in the case of an overvaluation) an amount equal to the difference between the Amortization Amount properly payable and the Amortization Amount actually paid, together with appropriate interest thereon.