Suspension of Trustee Discretion. From and after the Trust or any part thereof becomes irrevocable, if a Trustee (other than the Settlor) would be deemed to have a general power of appointment by virtue of any exercise by that Trustee of discretion granted to trustees in this Agreement, then that trustee discretion shall not be exercised by that Trustee in that instance, and in no instance shall a Trustee exercise trustee discretion in a manner that could satisfy any legal obligation of the Trustee, including the obligation of support. In all such instances, trustee discretion shall be exercised instead by an Independent Trustee. In addition, after the death of the Settlor, where a beneficial interest is not distributed outright, but is held in trust for future distribution, no beneficiary who is a Trustee with regard to his own beneficial interest shall exercise trustee discretion with regard to distributions to him from his own interest in the Trust, but the beneficiary is authorized to appoint as Distribution Trustee a person who is not related or subordinate to him, and who does not have a friendship relationship with the beneficiary that would compromise or color that Trustee’s independent judgment in matters relating to distribution. A Distribution Trustee shall serve for a period of twelve (12) months, subject to renewal of his authority on the anniversary of his appointment, is authorized to receive reasonable compensation, and can only be removed for cause.
