Exhibit 10.15
TRUST AGREEMENT
BETWEEN
X. XXXX PRICE TRUST COMPANY AND
KINDRED HEALTHCARE, INC.
TRUST AGREEMENT
BETWEEN
X. XXXX PRICE TRUST COMPANY AND
KINDRED HEALTHCARE, INC.
This TRUST AGREEMENT ("Agreement") is made by and between KINDRED
HEALTHCARE, INC., a Delaware corporation ("Employer"), and X. XXXX PRICE TRUST
COMPANY, a Maryland limited purpose trust company ("Trustee").
WITNESSETH
WHEREAS, the Employer sponsors and maintains the KINDRED & AFFILIATES
401(k) PLAN ("Plan"), a defined contribution plan for the benefit of all
eligible employees who participate under the terms of the Plan, including their
beneficiaries and alternate payees (individually, "Participant" and,
collectively, "Participants"); and
WHEREAS, the Employer intends that the Plan and related trust shall qualify
under Sections 401(a) and 501(a) of the Internal Revenue Code of 1986, as
amended (the "Code"); and
WHEREAS, the Employer desires to establish a trust to serve as the funding
vehicle for the Plan as provided under the terms of the Plan;
NOW, THEREFORE, the Employer and the Trustee agree as follows:
ARTICLE I. THE TRUST FUND
1.1 Establishment of Trust Fund. The Employer hereby establishes with the
Trustee a trust fund consisting of such sums of U. S. currency and such other
property acceptable to the Trustee as shall from time to time be paid to the
Trustee pursuant to this Agreement. All such money and property, together with
all investments and reinvestments made therewith and proceeds thereof, less any
payments or distributions made by the Trustee pursuant to the terms of this
Agreement, are referred to as the "Trust Fund". The Trustee hereby accepts the
Trust Fund and agrees to hold it in accordance with the express provisions of
this instrument and the requirements of law.
1.2 Effective Date. This Agreement shall be effective as of January 1, 2003.
1.3 Named Fiduciary. The Employer is the named fiduciary of the Plan ("Named
Fiduciary") within the meaning of Section 402(a)(2) of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"). The Named Fiduciary shall
have the power and duties with respect to the management and control of the
Trust Fund as set forth in the Plan and in this Agreement. The term "Named
Fiduciary," as used throughout this Agreement, is deemed to refer to the Named
Fiduciary of the Plan, as set forth in this Section 1.3, and its duly authorized
representatives. The Trustee shall not be a Named Fiduciary of the Plan.
1.4 Nature of Trustee's Duties. In performing its duties hereunder, the Trustee
shall serve solely in the capacity of a directed trustee within the meaning of
Section 403(a)(1) of ERISA. The Trustee shall not be deemed to be the
"administrator" as defined in ERISA Section 3(16)(A), the "plan sponsor" as
defined in ERISA Section 3(16)(B), or a trustee with discretion to perform more
than the express ministerial duties pursuant to the terms of this Agreement.
1.5 Limitation of Trustee's Duties. The Trustee shall have no duty to: (a)
determine or enforce payment of any contribution due under the Plan; (b) inquire
whether any contribution made to the Trust Fund is in accordance with the terms
of the Plan or law; (c) determine the adequacy of the funding policy adopted by
the Employer or the Named Fiduciary; (d) inquire as to the propriety of any
investment or distribution made under the Plan; or (e) ensure the tax qualified
status of the Plan under the Code.
ARTICLE II. INVESTMENT OF THE TRUST FUND
2.1 Investment of the Trust Fund - In General. Each Participant shall have the
exclusive right, in accordance with the provisions of the Plan, to direct the
investment by the Trustee of all amounts allocated to the separate accounts of
the Participant under the Plan among any one or more of the available Investment
Funds. All investment directions by Participants shall be timely furnished to
the Trustee by the Named Fiduciary, except to the extent such directions are
transmitted telephonically or otherwise by Participants directly to the Trustee
or its delegate in accordance with rules and procedures established and approved
by the Named Fiduciary and communicated to the Trustee. In making any investment
of the assets of the Fund, the Trustee shall be fully entitled to rely on such
directions furnished to it by the Named Fiduciary or by Participants in
accordance with the Named Fiduciary's approved rules and procedures, and shall
be under no duty to make any inquiry or investigation with respect thereto. The
Named Fiduciary may designate a default fund under the Plan in which the Trustee
shall deposit contributions to the Trust on behalf of Participants who have been
identified by the Named Fiduciary as having not specified investment choices
under the Plan. If the Trustee receives any contribution under the Plan that is
not accompanied by instructions directing its investment, the Trustee shall
immediately notify the Named Fiduciary of that fact. The Trustee shall invest
and reinvest the Trust Fund only as directed and the Trustee is specifically
prohibited from having or exercising any discretion with respect to the
investment of the Trust Fund.
2.2 Investment Powers of the Trustee. Subject to the limitations of Section
2.1, the Trustee shall invest and reinvest the Trust Fund as directed, free from
any limitations imposed by state law on investments of trust funds and without
distinction between income and principal, in any investment approved by the
Named Fiduciary, including equity or debt securities, insurance policies and
contracts, savings and time deposits, investment contracts issued by a bank,
insurance company or other financial or similar institution, short-term
instruments of deposit, registered investment companies (including any
investment company, the advisor of which is an affiliate of the Trustee),
investment partnerships or other pooled investments funds, common, collective or
group trust funds (including any such fund held or maintained by the Trustee or
an affiliate of the Trustee) for commingling assets of participating trusts,
including but not limited to assets of retirement plans which are qualified
under Section 401(a) of the Code (the instrument of trust creating any such
qualified common, collective or group trust fund, to the extent of the Trust
Fund's equitable share thereof, being adopted hereby). The Trustee shall
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have the power to hold all or a portion of the Trust Fund uninvested pending
receipt of clear and proper investment directions or pending receipt of a
contribution amount which is necessary to carry out an investment direction.
2.3 Investment Funds. The Named Fiduciary, subject to the provisions of Section
2.1, shall be solely responsible for directing the Trustee as to the investment
and disposition of the Investment Funds (as defined below) within the Trust Fund
and shall have responsibility for the overall diversification of the Trust Fund.
At the direction of the Named Fiduciary, the Trustee shall establish one or more
separate investment funds within the Trust Fund, each separate fund being
referred to as an "Investment Fund." Investment Funds shall be established by
direct investment or through the medium of a bank, trust fund, insurance
contract or regulated investment company, as the Named Fiduciary shall direct.
Each Investment Fund shall be held and administered as part of the Trust Fund,
but shall be separately invested and accounted for.
2.4 Participant Instructions. The Named Fiduciary's investment direction to the
Trustee may represent the aggregate of investment instructions of Participants
with respect to the assets in each Participant's Plan account. All references in
this Agreement to directions or instructions provided by the Named Fiduciary or
Employer shall be deemed to include Participant instructions that are provided
to the Employer, the Named Fiduciary or its agent, including any recordkeeper to
the Plan authorized to receive Participant investment instruction, and delivered
by the Named Fiduciary or its agent to the Trustee. The Named Fiduciary shall
have the duty to select and monitor all Investment Funds or other investment
media made available to Participants under the Plan. The Named Fiduciary or its
agent shall ensure that all Participants who are entitled to direct the
investment of assets in their Plan accounts previously received or receive a
copy of all material describing such Investment Funds that is required by law.
If a Participant fails to direct the investment of assets in the Participant's
Plan accounts as permitted by the Plan, the Named Fiduciary shall direct the
Trustee as to the investment of such assets.
2.5 Appointment of Investment Manager. The Named Fiduciary may appoint one or
more investment managers, as defined in Section 3(38) of ERISA ("Investment
Manager") to manage, acquire and dispose of all or a portion of the Trust Fund
or an Investment Fund. The Named Fiduciary shall provide the Trustee with
written notice of the appointment of each Investment Manager and of the
termination of such appointment and direct the segregation of that portion of
the Trust Fund to be managed by the Investment Manager. The Named Fiduciary also
shall provide the Trustee with a copy of the investment management agreement and
an acknowledgement by the Investment Manager that it is a fiduciary with respect
to the Plan within the meaning of Section 3(21)(A) of ERISA. The Trustee shall
be entitled to rely on such documents until otherwise notified in writing by the
Named Fiduciary. The Trustee shall invest and reinvest such portion of the Trust
Fund under the management of the Investment Manager as directed by the
Investment Manager. The Trustee shall be entitled to conclusively rely upon the
valuation of any securities or other property held in any portion of the Trust
Fund that is provided to it by such Investment Manager for all purposes under
this Agreement.
2.6 Investment and Insurance Contracts. In the event that insurance policies or
contracts or investment contracts issued by a bank, insurance company or other
financial or similar institution (including structured or synthetic investment
contracts) are held in the Trust Fund at the direction of the Named Fiduciary or
an Investment Manager ("Contracts"), the Trustee shall not be liable
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for the refusal or inability of any insurance company, bank or other financial
institution to issue, change, pay proceeds or make payments due under any
Contract; for the form, terms, genuineness, validity or sufficiency of any
Contract; or for any delay in payment or proceeds due under any Contract. The
Trustee shall not be responsible for the valuation of any Contract and the
Trustee shall be entitled to conclusively rely upon such valuation provided by
the issuer of the Contract for all purposes under this Agreement. The Trustee
shall not be responsible for evaluating or monitoring the financial condition or
status of any financial institution or insurance company issuing any such
Contract which the Named Fiduciary or an Investment Manager directs the Trustee
to hold or to purchase with the Trust Fund.
2.7 Trustee's Duty and Responsibility with Respect to the Trust Fund. The
Trustee shall have no duty to question any action or direction of the Employer,
the Named Fiduciary, or an Investment Manager or the failure of the Employer,
the Named Fiduciary, or an Investment Manager to give directions, or to review
the securities or other investments which are held pursuant to directions of the
Employer, the Named Fiduciary, or an Investment Manager as to the investment,
reinvestment, retention or disposition of any such assets. The Trustee shall not
have any responsibility for diversification of such assets, for any loss to or
depreciation of such assets resulting from the purchase, retention or sale of
assets in accordance with the direction of the Employer, the Named Fiduciary, or
an Investment Manager. The Trustee shall not be responsible for any investment
action taken or omitted by the Trustee in accordance with any direction of the
Employer, the Named Fiduciary, or an Investment Manager; any investment inaction
in the absence of an investment direction from the Employer, the Named
Fiduciary, or an Investment Manager; or any investment action taken by the
Trustee pursuant to an order to purchase or sell securities placed by the
Employer, the Named Fiduciary, or an Investment Manager directly with a broker,
dealer or issuer.
2.8 Knowledge of the Trustee. When the Trustee is subject to the direction of
the Employer, the Named Fiduciary, or an Investment Manager in performing its
duties under this Agreement, the Trustee's responsibilities will be limited to
certain ministerial duties with respect to the portion of the Trust Fund subject
to such direction, which duties do not involve the exercise of any discretionary
authority to manage or control Trust Fund assets and which duties will be
performed in the normal course of business by employees of the Trustee, its
affiliates or agents who are unfamiliar with investment management ("Ministerial
Duties"). Except as required by Section 403(a)(1) of ERISA, the Trustee is not
undertaking any duty or obligation, express or implied, to review, and will not
be deemed to have reviewed, any transaction involving the investment of the
Trust Fund which it is directed to perform by the Employer, the Named Fiduciary
or an Investment Manager except to the extent necessary to perform these
Ministerial Duties in accordance with such direction.
ARTICLE III. OTHER MINISTERIAL DUTIES OF THE TRUSTEE
3.1 Other Ministerial Duties of the Trustee. The Trustee is authorized and
empowered with respect to the Trust Fund to perform the following Ministerial
Duties necessary to effectuate the instructions and directions of the Named
Fiduciary, the Plan Administrator, an Investment Manager or a Participant:
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a) To make, execute, acknowledge and deliver any and all documents of
transfer and conveyance and any and all other instruments that may be necessary
or appropriate to carry out the powers herein granted.
b) To register any investment held by it in the name of the Trustee or in
the name of any custodian or its nominee, with or without words indicating that
such securities are held in a fiduciary capacity, but the books and records of
the Trustee shall at all times show that all such investments are part of the
Trust Fund.
c) To hold or to appoint an agent or custodian to hold any property
hereunder in bearer form or in its own name or the name of its nominee and to
deposit or arrange for the deposit of any securities or other property in a
securities depository or clearing agency; provided, however, that the Trustee
may not serve as custodian or appoint or terminate a custodian for any plan
assets, as defined in ERISA and the regulations thereunder, which are managed by
an affiliate of the Trustee. Any agent or custodian so appointed shall be paid
fees as mutually agreed upon by the Employer and the agent or custodian and paid
in the same manner as other expenses of the Trust Fund. The Trustee shall not
hold any property or securities hereunder in the same account as any individual
property of the Trustee.
d) To employ suitable agents, counsel, financial consultants, valuation
experts or other professionals (who may also be agents, counsel, consultants or
experts for the Employer or the Named Fiduciary) and to pay their reasonable
expenses and compensation out of the Trust Fund.
e) To trade all securities held in the Trust Fund as soon as possible after
an order is received and processed by the Trustee or its agent in accordance
with directions of the Employer, the Named Fiduciary or an Investment Manager,
taking into account any trade delays which may occur due to stock market
constraints or the liquidity of the security.
Each and all of the foregoing powers may be exercised without a court order
or approval.
3.2 Valuation of Trust Fund. The Trustee, as of the valuation date set forth in
the Plan and at such other time or times as is necessary or as the Trustee and
the Named Fiduciary agree, shall determine the market value of the assets of the
Trust Fund. The valuation shall be based upon valuations provided by Investment
Managers, trustees of common trust funds, sponsors of registered investment
companies, records of securities exchanges or valuation services, market data
providers or qualified appraisers. Notwithstanding the foregoing, the Trustee
shall not be responsible for providing the value of any Contracts, as described
in Section 2.6, or for any asset which is not liquid or not publicly traded, the
value of which shall be provided by the Named Fiduciary.
3.3 Trust Records. The Trustee shall keep accurate and detailed records of all
receipts, investments, disbursements and other transactions required to be
performed hereunder with respect to the Trust Fund. The Trustee agrees to treat
as confidential all records and other information relative to the Trust Fund.
The Trustee shall not disclose such records and other information to third
parties except to the extent required by law or as requested in writing by the
Employer. The Trustee agrees to permit the Employer to inspect the records of
the Trust Fund maintained by the Trustee during regular business hours and to
permit the Employer to audit the
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same upon the giving of reasonable notice to the Trustee. The Trustee further
agrees that it will provide the Employer with information and records that the
Employer may reasonably require in order to perform audits of such records.
3.4 Confidentiality/ Security of Records. Trustee and Employer agree to treat
as confidential and use only in connection with this Agreement all Plan data,
records, computer programs and software, reports and other documents, which are
furnished to the other under this Agreement. Trustee and Employer will protect
the security of such records and will not disclose such records or other
information to third parties except as required by law or when requested to do
so by the other; provided, however, that the Trustee may disclose such records
or information to its agents in the course of performing its duties under this
Agreement.
3.5 Accounting. Within 90 days after the close of the Plan's fiscal year or such
other period as the Employer and the Trustee may agree, and within 90 days after
the resignation or removal of the Trustee, as provided herein, the Trustee shall
file with the Employer a written account setting forth all investments,
receipts, disbursement and other transactions effected by it during such fiscal
year or during the period from the close of the last fiscal year to the date of
such resignation or removal. Unless the Employer files written objections to
such account with the Trustee within 180 days after the filing of such account
with the Employer, the accounting shall be deemed to be approved and the Trustee
shall, to the maximum extent permitted by applicable law, be released and
forever discharged from all liability for further accountability to the Employer
for the accuracy of such accounting and for the propriety of all acts and the
transactions of the Trustee reflected in such account. If written objections are
specified and the matters in controversy cannot be settled between the Employer
and the Trustee, the Trustee may apply for a judicial settlement of the account,
the costs of such settlement being allowed as an expense of the Trust Fund. The
only necessary party thereto in addition to the Trustee shall be the Employer.
3.6 Distributions and Other Payments. The Trustee shall make payment to such
persons, including the Employer, the Trustee, the Named Fiduciary, the Plan
recordkeeper and Participants, as the Named Fiduciary may direct from time to
time. The Named Fiduciary shall be responsible for insuring that any
distribution or other payment from the Trust Fund conforms to the provisions of
the Plan and ERISA. Excluding those fees and expenses set forth in this
Agreement and the Plan's recordkeeping agreement, which may be paid from the
Trust Fund if not paid directly by the Employer, the Named Fiduciary's direction
to pay fees or expenses relating to the administration of the Plan or Trust Fund
shall be in the form of a certificate substantially in the form as set forth in
Exhibit "A". Notwithstanding any other provisions of this Agreement, the Trustee
may condition any distribution or other payment of Trust Fund assets upon
receipt of satisfactory assurances that the approval of appropriate governmental
agencies or other authorities has been secured and that all notice and other
procedures required by applicable law have been satisfied. The Trustee shall be
entitled to rely conclusively upon the Named Fiduciary's directions and shall
not be liable for any distribution or other payment made in reliance upon the
Named Fiduciary's directions.
3.7 Limitation of Duties. The Trustee is a party to this Agreement solely for
the purposes set forth herein and neither the Trustee nor any of its officers,
directors, employees or agents shall have any duties or obligations with respect
to the Trust Fund, except as expressly set forth
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herein. To the extent not prohibited by ERISA, the Trustee shall not be
responsible in any way for any action or omission of the Employer or the Named
Fiduciary with respect to the performance of the Employer's or Named Fiduciary's
duties and obligations set forth in this Agreement and in the Plan. The Trustee
may rely upon such information, direction, action or inaction of the Employer or
the Named Fiduciary as being proper under the Plan or the Agreement and is not
required to inquire into the propriety of any such information, direction,
action or inaction.
ARTICLE IV. DUTIES OF THE EMPLOYER
4.1 Duties of the Employer. In addition to any duties of the Employer otherwise
prescribed in this Agreement, the Employer, individually or through the Named
Fiduciary, shall be responsible for performing the following functions with
respect to the Trust Fund:
a) Transmitting all Trust Fund contributions made by or on behalf of each
Participant to the Trustee at such times and in such manner as is mutually
agreed between the Employer and the Trustee;
b) Providing the Trustee with such information and data relevant to the
Plan as is necessary for the Trustee to properly perform its duties hereunder;
c) Providing to the Trustee, on a timely basis, a copy of the Plan document
including all amendments and restatements, and a copy of the Plan's
determination letter from the Internal Revenue Service;
d) Determining that the contributions made by or on the behalf of each
Participant are in accordance with any applicable federal and state law and
regulations;
e) Assuring that the Plan maintains qualified status under Section 401(a)
of the Code at all times while any Plan assets are held in the Trust Fund;
f) Providing the Trustee with the value of any Contracts;
g) Determining that all payments, including distributions to Participants,
are reasonable, proper and in accordance with the Plan, ERISA and the Code; and
h) Determining whether any domestic relations order is "qualified" in
accordance with Code Section 414(p) and directing the Trustee as to how to
effect any such order.
ARTICLE V. VOTING, TENDER AND SIMILAR RIGHTS
5.1 General Provisions. The Named Fiduciary (or the Investment Manager with
respect to assets under its management) shall direct the Trustee as to the
manner in which it shall: (i) vote in person or by proxy, general or special,
any securities held in the Trust Fund; (ii) exercise conversion privileges,
subscription rights and other options; and (iii) participate in or dissent from
reorganizations, tender offers or other changes in property rights.
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5.2 Receipt of Notices. Upon receipt, the Trustee shall transmit to the Named
Fiduciary (or to the Investment Manager with the respect to assets under its
management) all notices of conversion, redemption, tender, exchange,
subscription, class action, claim in insolvency proceedings or other rights or
powers relating to any investment in the Trust Fund, which notices are received
by the Trustee from its agents or custodian, from issuers of securities and from
the party (or its agents) extending such rights. The Trustee shall have no
obligation to determine the existence of any conversion, redemption, tender,
exchange, subscription, class action, claim in insolvency proceedings or other
right or power relating to any investments in the Trust Fund.
ARTICLE VI. RESIGNATION OR REMOVAL OF TRUSTEE
6.1 Resignation or Removal of Trustee. The Trustee may resign at any time upon
60 days' prior written notice to the Employer and the Employer may remove the
Trustee at anytime upon 60 days' prior written notice to the Trustee. If
mutually agreed upon between the parties, the 60 days' notice may be waived or
reduced. Upon resignation or removal of the Trustee, the Employer shall appoint
a successor trustee. Upon receipt by the Trustee of written acceptance of such
appointment by the successor trustee, the Trustee shall transfer and pay over to
the successor the Trust Fund and all records (or copies) pertaining thereto. The
Trustee is authorized, however, to reserve such sum of money or property as it
may deem advisable for payment of any liabilities constituting a charge against
the Trust Fund or against the Trustee, with any balance of such reserve
remaining after payment of all such items to be paid over to the successor
trustee. Upon the transfer and payment over the assets of the Trust Fund and
upon the settlement or approval of the account for the Trustee pursuant to
Section 3.5 herein, the Trustee shall be released and discharged from any and
all claims, demands, duties and obligations arising out of the Trust Fund and
its management thereof.
6.2 Employer's Failure to Appoint Successor Trustee. If the Employer has not
appointed a successor trustee which has accepted such appointment as of the
effective date of the Trustee's resignation or removal, the Trustee shall have
the right to apply to a court of competent jurisdiction for the appointment of
such successor or for a determination of its rights and obligations, the costs
of such action, unless paid by the Employer, being paid from the Trust Fund.
ARTICLE VII. AMENDMENT AND
TERMINATION OF THE TRUST AGREEMENT
7.1 Amendment. The Employer and the Trustee may amend this Agreement at any
time by a written agreement between them; provided, however, that no such
amendment shall make it possible for any part of the corpus or income of the
Trust Fund to be used or diverted to purposes other than the exclusive benefit
of Participants and defraying reasonable expenses of administering the Plan and
trust created under this Agreement.
7.2 Termination. This Agreement and the trust created hereunder shall terminate
upon the termination of the Plan, unless expressly extended by the Employer. The
trust also shall terminate upon the dissolution or liquidation of the Employer
where no successor has elected to continue the Plan and this Agreement.
Termination of the trust shall be effected by distribution of all Trust Fund
assets to the Participants or other persons entitled thereto pursuant to the
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direction of the Named Fiduciary, subject to the Trustee's right to reserve
funds as provided in Section 6.1 hereof. Upon the completion of such
distribution, the Trustee shall be relieved from all further liability with
respect to all amounts so paid.
ARTICLE VIII. MISCELLANEOUS
8.1 Exclusive Benefit. This trust has been established for the exclusive
benefit of the Participants. Except as provided herein, it shall be impossible
at any time prior to the satisfaction of all liabilities to the Participants for
any part of the principal or income of the Trust Fund (other than such part as
is required to pay taxes, administrative expenses or return of contributions to
the Employer as provided in Section 8.2 herein) to be paid or diverted to the
Employer or to be used for any purpose whatsoever other than for the exclusive
benefit of the Participants.
8.2 Return of Contributions. The Trustee shall return contributions to the
Employer upon the Employer's written direction for any of the following reasons:
(i) the contribution is made by reason of a mistake of fact as described in
Section 403(c) of ERISA, (ii) the contribution is conditioned on initial
qualification of the Plan under Section 401(a) of the Code and the Plan does not
so qualify, or (iii) the contribution is conditioned on its deductibility under
Section 404 of the Code and the contribution is not deductible. Contributions
returned to the Employer under this Section 8.2 shall be paid to the Employer
within one year after the Employer's payment of such mistaken contribution, the
date of denial of initial qualification or date of disallowance of the
deduction, if the Employer so directs the Trustee in writing. In making such a
return of assets to the Employer, the Trustee shall accept the Employer's
written direction as its warranty that such return is provided for in the Plan
and complies with the Plan document and ERISA Section 403(c), and the Trustee
may rely on such warranty without further investigation.
8.3 Nonalienation of Benefits. No rights or claims to any of the monies or
other assets of the Trust Fund shall be assignable, nor shall such rights or
claims be subject to garnishment, attachment, execution or levy of any kind; and
any attempt to transfer, assign or pledge the same, except as specifically
permitted by law (including but not limited to Qualified Domestic Relations
Orders under Section 206(d)(3) of ERISA, or amounts forfeited pursuant to
Section 206(d)(4) of ERISA as directed by the Named Fiduciary) shall not be
recognized by the Trustee.
8.4 Written Instruction. Any direction of the Employer or the Named Fiduciary
pursuant to any provisions of this Agreement shall be set forth in writing from
the Employer or the Named Fiduciary to the Trustee and the Trustee shall be
fully protected in relying upon such written direction of the Employer or Named
Fiduciary. For purposes of this Section 8.4, written instructions shall include
the electronic or telephonic transmission of information or data as mutually
agreed upon by the Trustee and the Employer. The Trustee shall be fully
protected in relying upon any communication that the Trustee reasonably believes
to have been given by the Employer or the Named Fiduciary or their duly
authorized representatives, or any individual having apparent authority as such.
The Trustee shall receive all directions or instructions in writing provided
that the Trustee may accept oral directions for purchases or sales from the
Named Fiduciary via telephone or other electronic procedures as agreed to
between the Employer and the recordkeeper for the Plan.
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8.5 Indemnification and Hold Harmless. The Employer shall indemnify and hold
harmless the Trustee (including its employees, representatives and agents) from
and against any liability, loss or expense (including reasonable attorneys'
fees) arising out of: (a) the Trustee's performance of its duties or
responsibilities under this Agreement, except to the extent that such loss or
expense arises from the Trustee's or its agents' own willful misconduct,
negligence, or breach of this Agreement, (b) any action taken by the Trustee in
accordance with the direction or instructions of the Employer, the Named
Fiduciary, a Participant or an Investment Manager, (c) any matter relating to
the Plan for which the Trustee has no responsibility, control or liability under
this Agreement, and (d) the failure of the Named Fiduciary or the Employer
(including its employees, representatives and agents) to perform its duties
under this Agreement or with respect to the Plan; provided, however, that this
Section 8.5 shall not be construed to relieve the Trustee from responsibility or
liability for any duty imposed upon directed trustees under Section 403(a)(1) of
ERISA.
8.6 Trustee's Fees, Expenses and Taxes. The Trustee shall be paid a fee of
$0.00 annually as compensation for its services hereunder. The Trustee shall
give 90 days advance written notice to the Employer whenever its fees are
changed. Such fees, any taxes of any kind whatsoever which may be levied or
assessed upon the Trust Fund, and any expenses incurred by the Trustee in the
performance of its duties hereunder, including fees for legal services rendered
to the Trustee, shall, unless paid by the Employer, be paid from the Trust Fund.
8.7 Merger, Consolidation or Transfer. In the event of the merger,
consolidation or transfer of any portion of the Trust Fund to a trust fund held
under any other plan, the Trustee shall dispose of all or part, as the case may
be, of the Trust Fund, in accordance with the written directions of the Named
Fiduciary, subject to the right of the Trustee to reserve funds as provided in
Section 6.1 hereof.
8.8 Conflict with the Plan Document. In the event of any conflict between the
provisions of the Plan document and this Agreement with respect to the rights or
obligations of the Trustee, the provisions of this Agreement shall prevail.
8.9 Construction. Whenever used in this Agreement, unless the context indicates
otherwise, the singular shall include the plural, the plural shall include the
singular, and the male gender shall include the female gender.
8.10 Headings. Headings in this Agreement are inserted solely for convenience of
reference and shall neither constitute a part of this Agreement, nor affect its
meaning, construction or intent.
8.11 Severability. If any provision of this Agreement is held invalid or
unenforceable, such invalidity or unenforceability shall not affect any other
provisions, and this Trust Agreement shall be construed and enforced as if such
provision had not been included.
8.12 Surviving Sections. Notwithstanding any Sections of this Agreement to the
contrary, Sections 6.1, 6.2, 7.2, 8.5 and 8.6 shall survive the termination of
this Agreement.
8.13 Law Governing. This Agreement shall be administered, construed and enforced
according to the laws of the State of Maryland and applicable federal law.
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8.14 Predecessor and Successor Trustees. The Trustee shall not be responsible
and shall have no liability for the acts or omissions of any of its predecessors
or successors.
8.15 Successors and Assigns. This Agreement shall be binding upon the successors
and assigns of the parties hereto.
8.16 Entire Agreement; Modification. This instrument contains the entire
agreement of the parties signatory hereto. Except as provided in Section 8.6, no
modification, amendment or waiver of any provision of this Agreement will be
effective unless in writing and signed by all parties hereto.
8.17 Signature Authority. The person executing this Agreement on behalf of the
Employer certifies that he or she is duly authorized by the Employer consistent
with the terms of the Plan to do so.
IN WITNESS WHEREOF, the Employer and the Trustee have caused their duly
authorized officers to execute this Agreement on the date as written below.
ATTEST/WITNESS: KINDRED HEALTHCARE, INC.
/s/ Xxxxxx Xxxxxxxx By: /s/ Xxxxx X. Xxxxxxx
--------------------------- ------------------------------------
Corporate VP HR
------------------------------------
Title
12/26/02
------------------------------------
Date
ATTEST/WITNESS: X. XXXX PRICE TRUST COMPANY
/s/ Xxxxx Xxxxx By: /s/ P.A. XxXxxxxx
--------------------------- --------------------------------
Vice President
12/27/02
------------------------------------
Date
11
EXHIBIT A
TO THE TRUST AGREEMENT BETWEEN
X. XXXX PRICE TRUST COMPANY AND
KINDRED HEALTHCARE, INC.
PAYMENT OF PLAN EXPENSES FROM THE TRUST FUND
Excluding Plan recordkeeping and Trustee fees and expenses, the Employer
shall submit to the Trustee all expenses to be charged to the Trust Fund. Each
submission also shall include the following certification executed by the Named
Fiduciary:
I hereby certify that these expenditures reflect
administrative expenses solely for the KINDRED &
AFFILIATES 401(k) PLAN for the period of _________ and
that such expenses are proper and reasonable.
Each submission shall also include an explanation of
the purpose of the expenditure and an invoice where
relevant.
_________________________________________
[Print Name]
_________________________________________
Title
_________________________________________
Date
12
