ALAN LOOP

FRANCIS .1 GALLAGHER

ROBERT GOSLINE

MALCOLM RAMEY

JOHN HACKETT JR

THOMAS WEBB

GREGORY ALEXANDER

CARL BRUGGEMAN

ROBERT CLAYTON JR

MARC GEATNER

GEORGE PICKNELL

DONALD MEWI4CRT JR

EDWIN EMEREON

JAMES TUSCHMAN

JAMES WHITE JR

BARTON WAGENMAN

ROLF SCHEIDEL

JOHN HAYWARD

WILUAM 11 GOSLINE

NORMAN HARTSEL

WILLIAM HEYW000 III

FRANCIS MCDANIEL JR

THOMAS PLETZ

JOHN BURSON

THOMAS WEBB JR

ROBERTM.ANSPACH

DAVID WICKLUNO

GARYR.DIESING

JOHN MKAY

Thomas Harman

Division of Investment Management

Securities and Exchange Commission

450 Fifth Street N.W

Washington D.C 20549

DAWID WATERMAN

VIVIAN FOLK

JOSEPH RIOOUT

GEORGE CHAPMAN

DENNIS WTTHERELL

KEVIN GRAHAM

JOHN BARRON

JACK FYNES

TIMOTHY MCCARTHY

RENEE BIRNBAUM

JOHN INGLIS

LYMAN SPITZER

ALETA BONINI

JUDITH ANN LANZINGER

MARK HIGH

MICHAEL SANDERSON

GARY SALES

MICHAEL MCGOWAN

MARY ELLEN PISANELLI

DWID SOUILLANTE

GREGORY LODGE

JANET CATLIN

PHILIP CHIJB8

THOMAS W000MAN

GREGORY SHIBLEY

OF COUNSEL

-C CHARLES SCHARFY

SWIFT CORWIN

JOHN STRAUB

Dear Mr Harman

Re NoAction Letter Request Relating to

Baton Rouge Building and Construction

Industry Foundation

Our File No B6675/16770

Based on our conversations on behalf of the abovecaptioned

foundation the Foundation we hereby submit additional factual

representations and the most recent versions of certain of the

organizational documents of the Foundation These representations and

materials are for your use in responding to our request that the Staff

of the Securities and Exchange Commission the Commission advise us

that it will not recommend that the Commission take enforcement action

concerning the actions of the Foundation or the Trusts to be created

thereunder without registering the Foundation or the Trusts as

investment companies under the Investment Company Act of 1940 and

without registering the Foundation or the Trusts as investment advisors

under the Investment Advisers Act of 1940

This letter will supplement our letter of June 22 1984

addressed to the Office of Chief Counsel Division of Corporation

Finance Copies of this letter are being forwarded to the Divisions of

Corporation Finance and Market Regulation for their use in responding to

our requests of them concerning the Foundation

On the question of the assets of the Trusts and the

investments to be made by the Foundation we confirm that the Trusts

will be holding assets consisting solely of participation interests in

construction period mortgage loans The Foundation as trustee of the

SHUMAKER LOOP KENDRICK

NORTH COURTHOUSE SQUARE 1000 JACKSON TOLEDO OHIO 43624

419 241-4201

July 17 1984 Bc74-42
Thomas Harman Esq

July 17 1984

Page

Trusts will purchase only participation interests on behalf of the

Trusts and will not hold or Invest any reserves for either Its benefit

or for the benefit of the respective Trusts

Enclosed herewith are the most recent versions of two of the

Foundations Master Documents as identifIed in our letter of June 22

As described in our telephone conversations it has been determined that

the Foundation should be organized as nonprofit corporation organized

under the laws of the State of Louisiana This change in the structure

of the Foundation has been undertaken for tax purposes but should not

affect either the organization or the operation of the Construction

Industry Investment Plan The pension plans who were to be members of

the unincorporated Foundation will now be the members of the nonprofit

corporation known as The Baton Rouge Building and Construction Industry

Foundation The trustees of the member Plans who were to sit on the

unincorporated Foundations Board of Directors will now serve on the

corporations Board of Trustees Officers will be elected annually but

will not exercise any operational authority and will not receive

compensation of any kind

This change In format has necessitated the revision of certain

of the Master Documents The Foundation Agreement which was Exhibit

to our letter of June 22 has been reconstituted to serve as the Bylaws

of the corporation while the Construction Industry Investment Plan

Exhibit to the June 22 letter has been extensively revised to reflect

the creation of the corporate entity These two documents are enclosed

as Amended Exhibits and respectively No substantive provisions of

either document have been materially affected by the restructuring

We trust that these representations and documents will enable

you to complete your action on our request Please contact either

George Chapman or the undersigned if you have any questions

Very truly yours

SHTJMAKER LOOP KENDRICK

By

Mark High

MRH/sjs

Enclosures

cc Division of Corporation Finance w/encl

Division of Investment Management w/encl

Marc Gartner Esq w/o end

George Chapman Esq wfo enc
AMENDED EXHIBIT

BY-LAWS

OF

BATON ROUGE BUILDING AND

CONSTRUCTION INDUSTRY FOUNDATION

Shumaker Loop Kendrick

North Courthouse Square

1000 Jackson

Toledo Ohio 43624

800 6625056
TABLE OF CONTENTS

Page

ARTICLE DEFINITIONS

Section 1.01 Agreement

Section 1.02 Director

Section .03 ERISA

Section 1.04 Member

Section 1.05 Corporate Trustee

Section 1.06 Foundation

ARTICLE II OFFICES

Section 2.01 PrincipalOffice

Section 2.02 OtherOffices

ARTICLE III PURPOSES MEMBERS

Section 3.01 Purposes

Section3.02 FounderMembers...

Section 3.03 AdditionalMembers

Section3.04 TerininationofMembership

Section 3.05 Voting Power of Members

ARTICLE IV MEETINGS OF MEMBERS

Section Annua Meetings

Section .02 Annual Report

Section4.03 SpecialMeetings

Section 4.04 Notice

Section 4.05 Quorum

Section 4.06 Proxies

ARTICLE BOARD OF DIRECTORS

Section 5.01 Election and Qualifications of Directors

Section 5.02 Successor and Substitute Directors

Section5.03 CompensationofDirectors

Section 5.04 Meetings

Section 5.05 Quorum and Voting.

Section 5.06 Notice......

Section 5.07 Written Consents and Waivers of Notice

Section 5.08 Committees

Section 5.09 Transactions with Interested Persons

Section5.10 PowersofDirectors
TABLE OF CONTENTS cont

Page

ARTICLE VI OFFICERS

Section6.O1 Number TitleandElection.....................

Section 6.02 Vacancies....................................

Section 6.03 Powers andDuties ... ..

ARTICLE VII INDEMNIFICATION OF DIRECTORS OFFICERS

EMPLOYEES AND AGENTS

ARTICLE VIII FINANCING PROPOSAL REVIEW PROCEDURE

Section 8.01 Meetings

Section 8.02 Subscription to Financing Proposals....

Section8.03 ReliancebyThirdParties

ARTICLE IX TR.ANSACTION TRUSTS

ARTICLE EXPENSES REIMBURSEMENTS ADMINISTRATION

Section 10.01 Expenses

SectIon 10.02 Expense Reimbursement Payments from

Transactions

Section 10.03 RegulatoryCompliance

Section 10.04 Forms Rules and Procedures

ARTICLE XI GENERAL PROVISIONS

Section 11.01 Amendments.....

Section 02 Headings

Sectionll.03.QualifiedStatus 10

ii
ARTICLE

DEFINITIONS

As used in these Bylaws unless the context clearly indicates

otherwise the following words and terms shall have the meanings here

set forth

Section 1.01 Agreement The term Agreement means this

instrument governing the establishment and operations of the Baton Rouge

Building and Construction Industry Foundation and shall include all

exhibits amendments modifications supplements and addenda hereto

Section 1.02 Director The term Director means member

of the Board of Directors of the Foundation appointed pursuant to

Section 5.01 or Section 5.02 hereof

Section 1.03 ERISA The term ERISA means the Employee

Retirement Income Security Act of 1974 as amended and regulations of

the Department of the Treasury and the Department of Labor promulgated

thereunder

Section 1.04 Member The term Member means both the

Founder Members who are the original subscribers of the Foundation and

such Additional Members as may hereafter and from time to time be

admitted pursuant to the provisions of Section 3.03 hereof The term

shall not include any Founder Member or Additional Member whose

membership shall have terminated prior to the pertinent determination of

Member status

Section 1.05 Corporate Trustee The term Corporate

Trustee means the corporate institution with Trust powers if any

selected pursuant to the provisions of Article IX

Section 1.06 Foundation The term Foundation means the

Baton Rouge Building and Construction Industry Foundation as governed by

this Agreement and as it may be subsequently amended

ARTICLE II

OFFICES

Section 2.01 Principal Office The principal office of the

Foundation shall be at such place in the City of Baton Rouge Louisiana

as may be designated from time to time by the Board of Directors

Section 2.02 Other Offices The Foundation shall also have

offices at such other places without as well as within the State of

Louisiana as the Board of Directors may from time to time determine
ARTICLE III

PURPOSES MEMBERS

Section 3.01 Purposes The purposes of the Foundation are

to provide procedure and system whereby representatives of Members may

gather from time to time to evaluate Investment proposals presented to

them so that such representatives may provide useful Information to the

respective Members and means through which such Members can invest

portions of their respective funds as they may from time to time

independently determine in such ventures as real estate equity and

financial transactions thereby diversifying their respective investment

portfolios

Section 3.02 Founder Members The Founder Members of the

Foundation are those trusts which are signatories to this Agreement

Section 3.03 Additional Members An eligible trust may be

admitted as an Additional Member of the Foundation upon the vote of the

Members of the Foundation and shall thereafter have all rights

privileges and obligations of membership as provided herein and as this

Agreement shall hereafter be amended from time to time trust shall

be eligible if and so long as it is trust exempt from federal income

taxation by virtue of Section 501 of the Code and exempt from

applicable state income taxation on corresponding basis Upon

admission each such Additional Member shall execute an adoption

agreement in substantially the form last approved by vote for use by the

Foundation

Section 3.04 Termination of Membership Any Member may

terminate its membership in the Foundation upon written notice to the

Foundation Members status as such shall automatically terminate

when it ceases to be an eligible trust as described in Section 3.03

hereof termination of membership by Member shall not affect any

investment theretofore made by the Member prior to its termination

Section 3.05 Voting Power of Members On any matter

submitted to vote of the Members of the Foundation each Member shall

have one vote

ARTICLE IV

MEETINGS OF MEMBERS

Section 4.01 Annual Meeting An annual meeting of the

Members of the Foundation shall be held during the month of April or at

such other time as may be determined by the Directors at such place

within or without Louisiana as the Directors may determine

Section 4.02 Annual Report At the annual meeting of the

Members there shall be presented to the Members financial statement

of the Foundation as of date not more than four months prior to the

date of the meeting as originally convened At such meeting there shall

-2
also be presented to the Members for approval proposed capital

expenditures budget and proposed operating budget for the current

fiscal year as prepared by the Board of Directors

Section 4.03 Special Meetings Special meetings of Members

may be called at any time by majority of the Board of Directors or the

President

Section 4.04 Notice Unless waived written printed or

typewritten notice of each annual or special meeting stating the day

hour and place and in the case of special meeting the purpose or

purposes thereof shall be given to or mailed to each Member not more

than sixty 60 days nor less than five days before any such

meeting The Secretary of the Foundation shall be responsible for

providing such notice

Section 4.05 Quorum simple majority of the entire

existing number of Members shall constitute quorum for meeting of

the Members and concurring vote of simple majority of the votes

cast at meeting at which quorum is present shall be the act of the

Members If at any meeting there should be less than quorum present

those present may adjourn the meeting without further notice from time

to time until quorum shall be present

Section 4.06 Proxies Members may vote or act by proxy in

respect to all matters which are to be voted upon by Members and voting

on all matters may be conducted by mail

ARTICLE

BOARD OF DIRECTORS

Section 5.01 Election and Qualifications of Directors Each

Member shall be represented on the Foundation by two individuals

Directors appointed by such Member One such Director shall be

trustee of such Member who has been selected by labor organization and

the other Director shall be trustee of such Member who has been

selected as an employer trustee of such Member Directors shall be

elected for term of one year and until their successors are elected

and duly qualified or until their earlier resignation removal from

office or death Each Additional Member shall provide the Foundation

with written notification of initial Directors appointed by the

Additional Member

Section 5.02 Successor and Substitute Directors Member

may by written notice to the Foundation remove any of its previously

appointed Directors and appoint successor Director or Directors

provided that it must comply with Section 5.01 hereof Director or

Member may by written notice to the Foundation authorize substitute

Director as to particular meeting specified in such notice Each such

notice shall be presented to the meeting and filed with the minutes of

the meeting Director may resign by written notice to the Foundation

and to the Member which appointed such Director The resignation of
Director shall be effective immediately unless otherwise stated in the

notice

Section 5.03 Compensation of Directors No Director shall

receive any compensation from the Foundation

Section 5.04 Meetings The annual meeting of the Directors

shall be held each year within 30 days following the Annual Meeting of

the Members at the earliest convenience of the elected Directors

Special meetings may be called at any time by the President or in the

absence of the President by the Secretary or by any three

Directors

Section 5.05 guorum and Voting simple majority of the

whole authorized number of Directors shall constitute quorum for

meeting of the Directors and the concurring vote of simple majority

of votes cast at meeting at which quorum is present shall be the act

of the Board If at any meeting there should be less than quorum

present those present may adjourn the meeting without further notice

from time to time until quorum shall be present

Section 5.06 Notice Unless waived written printed or

typewritten notice of each annual or special meeting stating the day

hour and place and the purpose or purposes thereof shall be given to or

mailed to each Director not more than sixty 60 days nor less than five

days before any such meeting The Secretary of the Foundation shall

be responsible for providing such notice

Section 5.07 Written Consents and Waivers of Notice Any

action required or permitted to be taken at any meeting of the Board of

Directors or of any committee thereof may be taken without meeting if

written consent to such action is signed by all members of the Board

or of such committee as the case may be and such written consent is

filed with the minutes of proceedings of the Board or committee

Section 5.08 Committees The Board of Directors may create

an Executive Committee and such other Coittee or Committees as the

Directors may determine the members of which Committee or Committees

shall consist of not less then three Directors The Directors may

delegate to any such Committee any of the authority of the Directors

simple majority of the members of any such Committee shall constitute

quorum and the act of simple majority of the votes cast at meeting

at which quorum is present shall be the act of the Committee The

President shall be voting member of the Executive Committee

Section 5.09 Transactions with Interested Persons No

contract or other transaction is void or voidable because it is between

the Foundation and one or more of the Members Directors or officers of

the Foundation or between the Foundation and any other person in which

one or more of the Foundations Members Directors or officers are

directors trustees or officers or have financial or personal

interest nor because one or more interested Members Directors or

officers participate in or vote at the meeting of the Directors or of

Committee of the Directors that authorizes the contract or transaction
if any of the circumstances enumerated in Louisiana Revised Statutes

12228 apply Common or interested Members Directors or officers may

be counted in determining the presence of quorum at meeting of the

Members Directors or of Committee of the Directors that authorizes

the contract or transactions

Section 5.10 Powers of Directors Subject to the powers

reserved by the Members the business and affairs of the Foundation

shall be managed and controlled by the Board of Directors Subject to

the provisions of the Louisiana Nonprofit Corporation Law the Articles

of Incorporation and the Bylaws of the Foundation the Board of

Directors shall do and perform every act and thing whatsoever which it

shall deem necessary expedient or advisable to carry out the purposes

of the Foundation

Without limiting the generality of the duties of the Board of

Directors as set -forth in the preceding paragraph the Board of

Directors shall maintain corporate surveillance over all of the

Foundations activities The Board of Directors shall determine the

Foundations programs and policies and assure that such policies and

programs are designed to serve the philosophies objectives and

purposes of the Foundation approve organization and major authority

delegation patterns delegate to the President the authority to conduct

the business of the Foundation and carry out the policies and programs

approved by the Board of Directors appoint competent staff and define

its authority and responsibilities make provision for establishment of

various auxiliaries to aid in accomplishing the objectives of the

Foundation provide for financial stability and analyze and evaluate

the total operation including all activities and services

ARTICLE VI

OFFICERS

Section 6.01 Number Title and Election The officers of

the Foundation shall be President Vice President Secretary and

Treasurer and such other officers and assistant officers as the Board

of Directors may from time to time determine Any two offices may be

held by the same person All officers shall be elected annually by vote

of the Board of Directors

The officers of the Foundation shall be chosen from among the

Board membership and shall be equally divided to the extent reasonably

possible between Directors who are union representatives and Directors

who are management representatives

Any officer may resign at any time by giving written notice to

the Board of Directors or to the President or the Secretary of the

Foundation Any such resignation shall take effect at the date of the

receipt of such notice or at any later time specified therein and

unless otherwise specified therein the acceptance of such resignation

shall not be necessary to make it effective
Section 6.02 Vacancies In the event of vacancy in any

office the vacancy shall be filled by majority vote of the Board of

Directors then in office for the remainder of the vacancy term

Section 6.03 Powers and Duties Subject to the limited

operational responsibilities of the Foundation and to such limitations

as may be prescribed from time to time by the Members with respect to

the President or by the Board of Directors with respect to all other

officers of the Foundation the President shall have the authority and

responsibility to operate the Foundation in all its activities and

departments and all officers shall each have such powers and perform

such duties as generally pertain to their respective offices and such

further powers and duties as may be conferred from time time by the

Board of Directors or in the case of all officers other than the

President by the President The President may be removed at any time

by majority vote of the Members and any other officer may be removed

at any time by majority vote of the Board of Directors or by vote of

the Members

ARTICLE VII

INDEMNIFICATION OF DIRECTORS OFFICERS EMPLOYEES AND AGENTS

Each person who at any time is or shall have been Member

Director officer employee or agent of the Foundation or is or shall

have been serving at the request of the Foundation as member/stock

holder/principal trustee/director trustee officer employee or agent

of another corporation partnership joint venture trust or other

enterprise and his heirs executors and administrators shall be

indemnified by the Foundation in accordance with and to the full extent

permitted by the Nonprofit Corporation Law Louisiana Revised Statutes

Section 12227 as in effect at the time of the adoption of this Article

or as amended from time to time thereafter The foregoing right of

indemnification shall not be deemed exclusive of other rights to which

any Member Director officer employee agent or other person may be

entitled in any capacity as matter of law or under any regulations

agreement vote of Members or Directors or otherwise If authorized by

the Directors the Foundation may purchase and maintain insurance

against liability on behalf of any such person to the full extent

permitted by law in effect at the time of the adoption of these Bylaws

or as changed from time to time

ARTICLE VIII

FINANCING PROPOSAL REVIEW PROCEDURE

Section 8.01 Meetings The Directors shall meet on such

dates and at such meeting places as the Directors shall from time to

time establish by vote for consideration of all financial proposals then

received with at least one meeting per quarter The Directors may

by vote determine schedule for periodic regular meetings and

procedure for the calling of special meetings
Prior to each such meeting the Secretary shall use his best

efforts to arrange an agenda for such meeting which among other things

shall list all financing proposals which will be presented at such

meeting and which agenda he shall endeavor to deliver to Directors seven

days prior to the meeting

Directors representing simple majority of all Members shall

constitute quorum at meeting Any Director may participate in

meeting by conference telephone provided all Directors can hear each

other and be heard by all and any vote or action taken by such Director

shall be confirmed in writing and delivered to the Foundation within

three business days of the voting or other action

In addition Member may provide proxy for Director to be

voted by the other Director appointed by it

Section 8.02 Subscription to Financing Proposals As part

of each meeting of the Foundation financial proposals for construction

mortgage loans or other investment opportunities may be presented by

representatives of local lending institutions for review by the Members

The Directors shall solicit receive consider and transmit to their

respective Members all binding enforceable commitments made by all

cooperating banks and savings and loan associations whether or not they

are for loans to local or nonlocal developers for local or nonlocal

construction projects or for unionbuilt or nonunionbuilt construction

projects Upon receipt of this information from the institutions the

Directors of each Member shall notify the full Board of Trustees or

other designated representatives of each Member of the Foundation of all

information received by them The trustees of the Members shall then

determine

if they desire to participate in the

specific construction mortgage loan and

if so the amount of their participation

The Directors of the Foundation shall accumulate the responses

from all of the Members and shall advise the lending institution of its

desire to participate or not and if so the amount of the participa

tion The amount of the participation shall be the amount of the

aggregate participations by the individual Members Each said loan

shall be deemed and construed to constitute separate and distinct

legal transaction and shall be documented as separate trust and the

Foundation shall maintain its books and records of account accordingly

Section 8.03 Reliance by Third Parties No borrower

broker mortgage banker correspondent investment advisor agent or any

other third party shall be entitled to rely upon any action of any

Member or Director of the Foundation The Foundation itself shall have

no authority to issue financing commitment Commitments as to

particular transactions shall be issued if at all by an appropriate

Transaction Trust pursuant to the provisions of Article IX hereof
ARTICLE IX

TRANSACTION TRUSTS

When financing proposal has been subscribed in whole or in

part as promptly as practicable thereafter those Members who have

subscribed to such financing proposal the Beneficiaries shall form

and fund Transaction Trust in accordance with the provisions of this

Article IX

Transaction Trust shall be formed by the execution of

Transaction Trust Agreement in counterparts or otherwise by the

Beneficiaries and the Foundation as Trustee of Transaction Trust

with such modifications as such Beneficiaries and the Foundation shall

unanimously find acceptable which shall be conclusively evidenced by

their respective signatures thereon

In order to assure that no Member who undertakes to partici

pate in financing transaction with other Members may be embarrassed by

the financial Inability of Member to fund its portion of the financing

at the specified time each Beneficiary shall concurrently with its

execution of its Transaction Trust Agreement fund in cash its share of

the participation in the subject financing proposal and Transaction

Trust

Such Transaction Trust shall thereafter promptly execute and

deliver such commitment and other documents as shall be approved by

counsel

The Trustee shall then enter into Participation Agreement

with the bank savings and loan association or other financial

organization which shall act as the Lead Lender to service the

Transaction The Trustee may but shall not be required to engage

Corporate Trustee for the aggregation and representation of the

collective interests of the Beneficiaries where it is legally necessary

or in the best interests of the Beneficiaries to do so

All participations purchased by the Members and taken by the

Foundation as Trustee shall be coparticipations with the originating

bank or savings and loan association and not the purchase of an interest

In any existing investment from the bank or savings and loan

The aggregated interest of all Members in single participa

tion shall not exceed fifty per cent 507 of the total loan commitment

In all participations the Members shall receive from the lead

lender as part of their participation

interest at or above the prevailing market

rate of interest for comparable commercial financing

transactions and

their pro rata share of the financing

points to the extent the points represent return on
the loan and not compensation and/or reimbursement

to the originating bank or savings and loan

association for the actual expenses incurred and/or

services rendered in servicing the construction

mortgage loan

ARTICLE

EXPENSES REIMBURSEMENTS ADMINISTRATION

Section 10.01 Expenses The Foundation may incur and as

funds are available pay such expenses as may be approved by the

Directors including the reasonable expenses heretofore incurred in

connection with its organization

Section 10.02 çpense Reimbursement Payments From Trans

actions The representatives of the lending institutions from whom

loans are bought or with whom loans are made shall be requested to

obtain from each prospective borrower commitment to pay the

Foundation as Trustee of the particular transaction at the time such

transaction documents are established an amount sufficient to reimburse

both the organizational and legal expenses of such transaction and an

allocated portion of the organizational and operating expenses of the

Foundation As to each transaction such allocated portion of the

organizational and operating expenses of the Foundation shall be

determined by the Directors

Section 10.03 Regulatory Compliance The Foundation shall

apply for such federal and state taxexempt status tax rulings federal

and state securities noaction letters and ERISA exemptions as

determined by vote of the Directors or by duly delegated officers of

the Foundation on recommendation of counsel

Section 10.04 Forms Rules and Procedures The Foundation

may adopt such forms rules and procedures including without

limitation financing procedures as the Directors may determine from

time to time

ARTICLE XI

GENERAL PROVISIONS

Section 11.01 Amendments This Agreement may be amended only

by writing signed by the then Members holding at least majority of

the total voting power of the Foundation Such amendments shall be made

only after due consideration of applicable tax securities ERISA and

other laws and regulations

Section 11.02 Headings The headings of the Articles and

Sections of this Agreement are for convenience only and shall not be

deemed to affect the interpretation or validity of any part of this

Agreement

9--
Section 11.03 ualif led Status It is the intended purpose

of the parties to this Agreement that the Foundation shall be and at all

times remain exempt from federal and state income taxes The Foundation

shall avoid the receipt of income or payments which are inconsistent

with the taxexempt status of the Foundation and its Members No part

of any net earnings of the Foundation shall inure to the benefit of any

private person If any court or administrative ruling holds that any

provision of this Agreement or any of the procedures practices rules

or documents of the Foundation are inconsistent with applicable

qualification requirements under presently existing laws and/or

regulations or any laws or regulations hereinafter enacted or adopted

any such provision procedure practice rule or document shall be

nullified and the Members shall thereafter promptly attempt to make

such changes as may be necessary to retain such status while fully

accomplishing the purposes of this Agreement

10
AMENDED EXHIBIT

BATON ROUGE BUILDING AND

CONSTRUCTION INDUSTRY FOUNDATION

CONSTRUCTION INDUSTRY INVESTMENT PLAN

Shuinaker Loop Kendrick

North Courthouse Square

1000 Jackson

Toledo Ohio 43624

800 6625056
INDEX

Page

ARTICLE DEFINITIONS

Section Union

Section Association

Section Employee Benefit Plan

Section Employee Benefit Plan Contributions

Section Plan

Section Director

Section ERISA

Section Foundation

Section Member

Section 10 Founder Members

Section 11 Additional Member

Section 12 Foundation ByLaws

ARTICLE II PLAN OPERATION

Section Roster of Lenders

Section Receipt of Commitments

Section Transmittal of Data

Section Rules and Regulations

Section Employee Benefit Plan Account

Section Records of Investments

Section Investments

Section Principal Payments

Section Interest Payments

Section 10 Participation Requirements

Section 11 Mortgage Loan Commitments

Section 12 CoParticipations

Section 13 Limited Investment

Section 14 Department of Labor Regulations

Section 15 Recordkeeping

Section 16 Take Out Loan Commitments

ARTICLE III SPENDTHRIFT PROVISIONS

ARTICLE IV EFFECTIVE DATE AND TERNINATION 10

Section Effective Date 10

Section Termination and Distribution 10

Section Alternate Distribution 10

Section Amendments 10
Page

ARTICLE CONSTRUCTION 11

Section Governing Law 11

Section Validity of Documents 11

Section Effect of Illegality 11

Section Judicial Construction 11

Section Extent of Director Liability 12

Section Titles 12

Section Execution 12

Section Severability 12

ii
BATON ROUGE BUILDING AND

CONSTRUCTION INDUSTRY FOUNDATION

CONSTRUCTION INDUSTRY INVESTMENT PLAN

THIS AGREEMENT made and entered into at Baton Rouge

Louisiana by and among the Directors appointed by the Employee Benefit

Plans who are the Founder Members of the Baton Rouge Building and

Construction Industry Foundation as those terms are hereinafter

defined

WHEREAS certain of said Employee Benefit Plans the Founder

Members have established nonprofit corporation under the laws of the

State of Louisiana known as the Baton Rouge Building and Construction

Industry Foundation to enable the Boards of Trustees of said Employee

Benefit Plans which become members of the Foundation to make legal and

prudent investments on combined and consolidated basis but compliant

in all respects with all requirements of LMRA ERISA and the Code and

WHEREAS the Founder Members have appointed their respective

members of the Board of Directors of the Foundation and

WHEREAS the Board of Directors by the terms of the Articles

of Incorporation and ByLaws of the Foundation is empowered to

establish Plan for the Foundation and

WHEREAS the Board of Directors desires te implement and

effectuate the provisions of the Foundation by setting forth the terms

and provisions of the Plan for the Foundation

NOW THEREFORE in consideration of these premises the mutual

covenants herein contained and for other good and valuable considera

tion the receipt and sufficiency of which are hereby mutually

acknowledged it is agreed by and among the Board of Directors as

follows
ARTICLE

DEFINITIONS

SECTION UNION

The term Union as used herein shall mean any labor organi

zation which is

the duly designated collective bargaining

representative of workmen engaged in the building

and construction industry in the greater Baton

Rouge Louisiana area and

cosponsor of any Employee Benefit Plan

which becomes member of the Foundation

SECTION ASSOCIATION

The term Association as used herein shall mean any associa

tion of employers which is

the representative of Employers engaged in

the building and construction industry in the

greater Baton Rouge Louisiana area who employ

workmen represented by Union and

cosponsor of any Employee Benefit Plan

which becomes member of the Foundation

SECTION EMPLOYEE BENEFIT PLAN

The term Employee Benefit Plan as used herein shall mean any

employee benefit plan as defined in Section 33 of ERISA which

is sponsored by one or more Unions and one

or more Associations

becomes member of the Foundation and

is exempt from taxation by virtue of

Section 501a of the Code

SECTION EMPLOYEE BENEFIT PLAN CONTRIBUTIONS

The term Employee Benefit Plan Contributions as used herein

shall mean payments made to the Foundation by participating Employee
Benefit Plans in accordance with this Plan and/or the Foundation

ByLaws

SECTION PLAN

The term Plan as used herein shall mean the program methods

and procedures for the investment of monies from the Employee Benefit

Plans by the Directors as set forth herein

SECTION DIRECTOR

The term Director as used herein shall mean member of the

Board of Directors of the Foundation appointed pursuant to Article

Section 5.01 or Section 5.02 of the Foundation ByLaws

SECTION ERISA

The term ERISA as used herein shall mean the Employee

Retirement Income Security Act of 1974 as amended and regulations of

the Department of the Treasury and the Department of Labor promulgated

thereunder

SECTION FOUNDATION

The term Foundation as used herein shall mean the Baton

Rouge Building and Construction Industry Foundation nonprofit

corporation organized under the laws of the State of Louisiana as

originally adopted and as it may be subsequently amended

SECTION MEMBER

The term Member as used herein shall mean both the Founder

Members who are the original members of the Foundation and such

Additional Members as may hereafter and from time to time be admitted

pursuant to the provisions of Article III Section 3.03 of the

Foundation ByLaws The term shall not include any Founder Member or

Additional Member whose membership shall have terminated prior to the

pertinent determination of Member status

SECTION 10 FOUNDER MEMBERS

The term Founder Members as used herein shall mean those

Employee Benefit Plans which are the initial organizational members of

the Foundation
SECTION 11 ADDITIONAL MEMBER

The term Additional Member as used herein shall mean an

Employee Benefit Plan which is not Founder Member and which is

admitted to participation in the Foundation pursuant to Article III

Section 3.03 of the Foundation ByLaws

SECTION 12 FOUNDATION BY-LAWS

The term Foundation ByLaws means the ByLaws adopted by the

Board of Directors of the Foundation
ARTICLE II

PLAN OPERATION

SECTION ROSTER OF LENDERS

The Directors shall establish contact with and shall maintain

roster of all banks savings and loan associations and mortgage

brokers involved in generating bidding approving and funding of

construction loans to general contractors in the geographic juris

dictions set forth in the collective bargaining agreement between the

Union and the Association

SECTION RECEIPT OF COMMITMENTS

The Directors shall solicit receive consider and transmit

all binding enforceable commitments made by all cooperating banks

savings and loan associations and mortgage brokers whether or not they

are for loans to local or nonlocal developers for local or nonlocal

construction projects or for unionbuilt or nonunionbuilt construction

projects which

shall comply with the terms conditions

and provisions of Prohibited Transaction Exemption

761 and

which comply with the guidelines adopted

by the Directors and which are attached hereto and

incorporated herein

SECTION TRANSMITTAL OF DATA

All data obtained by the Directors from banks savings and

loan associations and mortgage brokers as hereinbefore described shall

be promptly transmitted to the Boards of Trustees of the Employee

Benefit Plans participating herein at such time and in such manner as

shall be determined by the Directors with the approval of the parti

cipating Employee Benefit Plans

SECTION RULES AND REGULATIONS

The Directors shall promulgate rules and regulations

applicable to those Employee Benefit Plans which desire to participate

in any of the proffered construction mortgage loan participations

setting forth the manner in which the Employee Benefit Plans desiring to

participate therein shall notify the Directors of such fact of the

amount of such participation and such other information as the
Directors deem appropriate In no event shall the Directors make any

investment decision for or on behalf of any participating Employee

Benefit Plan

SECTION EMPLOYEE BENEFIT PLAN ACCOUNT

If an Employee Benefit Plan decides to participate in any one

or more of the offered construction mortgage participations the Board

of Trustees of the Employee Benefit Plan shall forward to the Directors

the dollar amount of its participation therein The contributions from

the Employee Benefit Plans participating in each transaction shall be

promptly transmitted to the lead lender

SECTION RECORDS OF INVESTMENTS

The Foundation shall keep records as to each investment here

under including the names of all participating Employee Benefit Plans

the nature and extent of the participation copies of all loan

documents records of periodic payments of principal and interest on the

investment and such other information as the Directors with the advice

of their professional advisors shall determine Copies of this infor

mation shall be made available on regular basis to all Employee

Benefit Plans participating in each said investment

SECTION INVESTMENTS

All investments shall be acquired in the name of the

Foundation Payments to fund the investments shall be made by the

respective Members participating in each investment Repayments of

principal and interest shall be made to and in the name of the

respective Members participating in each investment

SECTION PRINCIPAL PAYMENTS

The Foundation shall on regular basis remit to all parti

cipating Employee Benefit Plans their pro rata shares of principal

repayment and income earned on their respective participations in each

investment

SECTION INTEREST PAYMENTS

The Foundation shall receive and record all payments of

interest on interim holding account investments The income from such

investments shall be used first to pay all expenses attendant to the

operation of the Foundation and shall thereafter be distributed pro rata

to participating Employee Benefit Plans To the extent expenses

attributable to the operation of the Foundation remain after the

application of the preceding sentence remittances of the pro rata
shares shall be made to the participating Employee Benefit Plans net of

expenses on pro rata basis

SECTION 10 PARTICIPATION REQUIREMENTS

In all participations the Members shall receive from the

originating bank or savings and loan association as part of their

participation

interest at or above the prevailing market

rate of interest for comparable commercial financing

transactions and

their pro rata share of the financing

points to the extent the points represent return on

the loan and not compensation and/or reimbursement

to the originating bank savings and loan asso

ciation or mortgage broker for the actual expenses

incurred and/or services rendered in servicing the

construction mortgage loan

SECTION 11 MORTGAGE LOAN COITMENTS

The Foundation shall not forward for consideration by the

Members any construction mortgage loan commitments for purchase of

participation through the Foundation unless the bank savings and loan

association or mortgage broker originating the commitment has valid

legal binding and enforceable commitment to the loan applicant and the

borrower for the construction mortgage loan without regard to

participation by any Employee Benefit Plan participating in the

Foundation

SECTION 12 COPARTICIPATIONS

All participations purchased by an Employee Benefit Plan shall

be coparticipations with the originating bank or savings and loan

association in the commitments and not the purchase of an interest in

any existing investment from the bank or savings and loan association

SECTION 13 LIMITED INVESTMENT

In no event shall any Employee Benefit Plan invest

more than ten per cent 10% of the assets

of said Employee Benefit Plan at cost in any single

participation investment nor
more than thirtythree and onethird per

cent 33 1/3% of the assets of said Employee

Benefit Plan at cost in all of the participation

investments obtained through the Foundation

The Foundation shall not participate in any participating construction

mortgage loan in which the originating bank or savings and loan

association has less than fifty per cent 50% interest in the loan

SECTION 14 DEPARTMENT OF LABOR REGULATIONS

The Directors do hereby adopt and expressly make part of

this Plan Department of Labor Regulation Section 2550.408b2e and the

examples of Regulation Section 2550.408b2f Without limiting the

generality of the foregoing any Director who has an interest in the

employer entity which is involved in construction project to be

financed by commitment the participation in which is being trusteed

by the Foundation shall

abstain from voting on the participation

determination

absent himself from the Directors meeting

room when the issue of the purchase of participa

tion in said commitment is under discussion and

consideration and

represent on the record that he has not

discussed the participation with any other Director

nor has he attempted to exert any influence upon any

Director with regard to the issue

SECTION 15 RECORDKEEPING

The Foundation shall maintain or cause to be maintained for

period of six years from the date of each loan participation such

records as are necessary to enable the Department of Labor the Internal

Revenue Service the Plans participants and beneficiaries or any

employee organization whose members are covered by the Plan to determine

whether all conditions of the Department of Labors prohibited

transaction exemption have been met

SECTION 16 TAXE OUT LOAN COMMITMENTS

Before the Loan is made the Foundation shall receive from the

lending institution written commitment for permanent financing from

person other than participating Plan or the Foundation to enable full

repayment of the participating loan upon completion of construction
ARTICLE III

SPENDTHRIFT PROVISIONS

No part of any benefits to be given hereunder or payments of

any benefits shall be assigned alienated or in any manner encumbered

If by reason of any such act by operation of law by the happening of

any event or for any other reason except by an act authorized by the

Directors any such benefit payment or account shall cease to be

enjoyed by any employee or beneficiary of any Employee Benefit Plan

participating herein either directly or indirectly or if by reason of

an attempt of such employee or beneficiary to alienate charge or

encumber the same or by reason of the bankruptcy or insolvency of such

employee or his beneficiary or because of any attachment garnishment

execution or other proceedings or any order finding or judgment of any

court of law or equity the same except for this provision would vest in

and be enjoyed by some other person firm corporation or otherwise than

as provided for herein then all of the rights and benefits provided for

herein for any such employee or beneficiary shall cease and desist and

thereafter any such benefit or payment on account of any such benefit

which would have been enjoyed by such employee or beneficiary except

for this provision shall be held and disposed of by the Directors may

cause to be paid or expended for the support care and maintenance of

said employee or beneficiary out of the monies due said employee or

beneficiary such sums as in their discretion shall be deemed just and

proper which do not exceed the amount withheld for the benefit of said

employee or beneficiary
ARTICLE IV

EFFECTIVE DATE AND TERMINATION

SECTION EFFECTIVE DATE

The Plan created hereby shall become effective on the 1st day

of July 1984

SECTION TERMINATION AND DISTRIBUTION

The Plan may be terminated at any time by agreement of

majority of the Members then serving In the event of such termination

no further investments shall be made by the Foundation in construction

loans all future remittances to the Members shall be placed in an

incomeproducing account in the name of the Members and expenses

applicable to the operation of the Plan and the Foundation shall be paid

as herein provided At such time as the Directors determine the

Foundation shall distribute on pro rata basis the proceeds of such

loans plus any additional income from the interestbearing account

less any applicable expenses to the Employee Benefit Plans

participating at the time of termination Notwithstanding the

termination of the Plan winding up period shall follow such

termination to enable the Directors to conclude the operations of the

Plan including the collection of principal and interest payments and

the payment of expenses

SECTION ALTERNATE DISTRIBUTION

In lieu of the distribution set forth In Section hereof

upon the agreement of majority of the Directors then serving the

Directors may after all obligations of the Foundation have been set

aside or actuarially secured turn over any surplus monies and property

in the Foundation to any future foundation that may be created through

the collective bargaining process

SECTION AMENDMENTS

This Plan may be amended at any time and from time to time by

majority vote of the Directors

10
ARTICLE

CONSTRUCTION

SECTION GOVERNING LAW

This Plan is created and accepted in the State of Louisiana

and all questions pertaining to the validity or construction hereof and

of the acts and transactions of the parties hereto shall be determined

in accordance with the laws of the State of Louisiana except as to

matters governed by federal law

SECTION VALIDITY OF DOCUMENTS

Anything herein contained to the contrary notwithstanding the

Directors shall not have any responsibility for the validity of this

Plan or for the form genuineness validity or sufficiency or effect of

any insurance contract at any time included in the Foundation or for the

act of any person or persons which may render any such contract null and

void or for the failure of any insurance company to pay the proceeds

and avails and benefits of any such contract as and when the same shall

become due and payable or for any delay occasioned by reason of any

restriction or provision contained in any such contract or if for any

reason whatsoever any contract shall lapse or otherwise become

uncollectible

SECTION EFFECT OF ILLEGALITY

Should any provision of this Plan be held to be unlawful as to

any person or instance such provision or fact shall not adversely

affect the other provisions herein contained or application of said

provisions to any other person or instance unless such legality shall

make impossible the function of the Foundation or the Plan No Director

shall be held liable for any act done or performed in pursuance of any

provisions herein contained regardless of the fact that such provisions

may be held unlawful prior to the time when such provisions shall in

fact be held to be unlawful by court of competent jurisdiction

SECTION JUDICIAL CONSTRUCTION

The Directors may take any legal action or proceeding they

deem necessary to settle their accounts or to obtain judicial deter

mination or declaratory judgment as to any question of construction of

the Plan or for instruction as to any action thereunder Any such

determination shall be binding upon all parties to or claiming under the

Foundation ByLaws and/or the Plan

11
SECTION EXTENT OF DIRECTOR LIABILITY

To the fullest extent permitted by law the costs and expenses

of any action suit or proceeding brought by or against the Directors or

any of them including counsel fees court costs and also including the

payment of any judgment and/or cost of settlement of any suit or

proceeding which the Directors may approve upon advice of their counsel

that such judgment or settlement was in payment of an obligation owed or

reasonably deemed to be owed by the Foundation shall be paid from the

Foundation except in relation to matters as to which it shall be

adjudged In such action suit or proceeding that such Director was

acting in bad faith or was negligent in the performance of his duties

hereunder

SECTION TITLES

Titles of articles and sections are for general information

only and this Plan is not to be construed by reference thereto

SECTION EXECUTION

This Plan may be executed in any number of counterparts each

of which shall have the force of an original and said counterparts

shall constitute but one and the same instrument

SECTION SEVERABILITY

In the event that any article of this instrument or any part

thereof is determined to be illegal or invalid such illegality or

invalidity shall not affect the remaining provisions of this instrument

as presently written or subsequently amended unless such illegality or

invalidity prevents the Directors from accomplishing the purpose of this

Plan In such event the parties hereto individually and collectively

agree to coence negotiations aimed at correcting any such defect

12
IN WITNESS WHEREOF the Employer Directors and the Union

Directors have executed this Plan on this __________ day of

____________________ 1984 to be effective as of the date set forth in

Article IV Section

EMPLOYER DIRECTORS UNION DIRECTORS

MG dj

7/9/84

BATON

13
GUIDELINES FOR CONSTRUCTION INDUSTRY

INVESTMENTS BY THE BATON ROUGE

BUILDING AND CONSTRUCTION INDUSTRY FOUNDATION

The following guidelines are hereby adopted by the Directors

of the Baton Rouge Building and Construction Industry Foundation and are

incorporated into and made part of the Baton Rouge Building and

Construction Industry Foundation Construction Industry Investment Plan

The lending institutions will initiate process and

approve all applications for loans The leaders of the Baton Rouge

Building and Construction Trades Industry will encourage owners

developers and builders to apply to those lending Institutions

participating with the Foundation in its construction industry invest

ment program However the generation and approval of all loans rest

solely and exclusively with the lending institutions

The first contact by the lending institution with the

Foundation will only be after the lending institution has made valid

binding and enforceable construction mortgage loan commitment

On periodic basis chronology to be worked out with

each lending institution to its satisfaction the lending institution

will advise the administrator of the Foundation of all construction

mortgage loan applications it has approved since the last communication

and shall transmit to the Foundations administrator the loan package

showing the borrower amount of the loan rate and terms of the loan and

security contractor and subcontractors description of project etc

The administrator of the Foundation will Immediately copy

and forward all information received to all Plans

Within an acceptable time frame the Trustees of each

Plan shall consider each loan commitment and make two determina

tions

shall the Plan participate in each loan and

if so to what financial extent

Each Plan shall then advise the administrator of the

Foundation of its decisions on each loan commitment

The administrator of the Foundation shall accumulate the

responses from each Plan on each loan commitment and shall notify the

lending institution
if there will be participation in each loan and

if so in what aggregate amount

The Foundation shall act as trustee under Transaction

Trust Agreement for each participation The lending institution viii

deal only with the Foundation as trustee not with the individual Plans

or Trustees

The Foundation as trustee will execute Participation

Agreement with the lending institution with the Foundation as the

participant and the lending institution as lead lender

10 Within ten 10 days of the execution of the Transaction

Trust and the Participation Agreement each participating Plan will fund

one hundred per cent 100Z of its participation to the lending

institution The lending institution shall keep all of the partici

pants funding invested for the participants account until drawn down

11 The lending institution as lead lender will fully service

the loan without involvement by the Foundation or the participating

Plan

12 The transactions shall be documented and handled as

participating construction mortgage loans in accordance with the rules

practices and procedures of the lending institution

13 The Trustees of each Plan shall receive and consider all

loan commitments from all cooperating lending institutions for which

legally binding and enforceable commitment has been made whether the

commitments are for

local developers or nonlocal developers

local construction projects or nonlocal construction

projects and

unionbuilt construction projects or nonunionbuilt

construction proj ects

Provided however that the cooperating lending institutions shall not

be required to submit to the Foundation all commitments for construction

mortgage loans unless

its customerborrower shall have consented to the

invitation for participation by the Foundation which partici

pation by the Foundation shall be affirmatively recommended by

the lending institution
the conmiittnent shall be in the amount of Two Hundred

Thousand Dollars $200000.00 or more and

Cc the loan is generated by branch or affiliate of

the lending institution and/or is for construction to be

performed in the geographic jurisdiction of the Foundation

14 All participations purchased by the Plans shall be

coparticipations with the originating lending institutions in the

commitments and not the purchase of an existing investment from the

institutions

15 In no event shall any Plan invest

more than ten per cent 10% of the assets of the

Plan at cost in any single participation investment nor

more than thirtythree and onethird per cent

33 1/3% of the assets of the Plan at cost in all of the

participation investments obtained through the Foundation

16 In no event shall the aggregate participation through the

Foundation be more than fifty per cent 507 of the total loan

17 In any participation purchase by Plan through the

Foundation with the originating lending institution the Plan shall

require that

the loan is made at or above the prevailing market

rate of interest for comparable commercial financing trans

actions and

the Plan receive its pro rata share of the financing

points to the extent the points represent return on the loan

and not compensation and/or reimbursement to the lending

institution for actual expenses incurred and/or services

rendered in servicing the construction mortgage loan

18 The Trustees of the Plans shall adopt and expressly make

part of their Plan documents Department of Labor Regulation Section

2550.408b2e and the examples of Regulation Section 2550.408b2f

Without limiting the generality of the foregoing any Trustee of any

Plan who has an interest in the employer entity which is involved in

construction project to be financed by commitment the participation

in which is being considered by the Plan shall

abstain from voting on the participation determi

nation
absent himself from the Trustees meeting room when

the issue of the purchase of participation in said commit

ment is under discussion and consideration and

represent on the record that he has not discussed

the participation with any other Trustee nor has he attempted

to exert any influence upon any Trustee with regard to the

issue

19 In considering and acting upon the purchase of partici

pation in any commitment the Trustees of each Plan shall act in strict

compliance with ERISA Section 404a

20 Before the loan is made the Foundation shall receive

from the lending institution written commitment for permanent

financing from person other than participating Plan or the

Foundation to enable full repayment of the participating loan upon

completion of construction

21 The Foundation shall maintain or cause to be maintained

for period of six years from the date of each loan participation

such records as are necessary to enable the Department of Labor the

Internal Revenue Service the Plans participants and beneficiaries any

employer of Plan participants and beneficiaries or any employee

organization whose members are covered by the Plan to determine whether

all conditions of the Department of Labors prohibited transaction

exemption have been met

MG dj

7/9/84

BATON
SHUMAKER LOOP KENDRICK

NORTH COURTHOUSE SQUARE 1000 JACKSON TOLEDO OHIO 43624

419 241-4201

June 22 1984

Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

450 5th Street N.W

Washington D.C 20549

Re Request for NoAction Letter Relating to the Baton Rouge

Building and Construction Industry Foundation

Section 3a2 of the Securities Act of 1933

Sections 3a12 and 12g of the Securities Exchange

Act of 1934

Sections 3a4 3a5 and 15a1 of the Securities

Exchange Act of 1934

Sections 3c5 and 3c11 of the Invebtment Company

Act of 1940

Section 202a11 of the Investment Advisers Act of 1940

Our File No B6675/16770

Ladies and Gentlemen

The Baton Rouge Building and Construction Trades Council the

Trades Council is confederation of local building and construction

trades unions which represent building and construction tradesmen

working In central Louisiana The local unions are affiliates of

international trades unions which are all members of the AFLCIO and

its Building Trades Department The Baton Rouge Council of Construction

Employers the Employers Council is confederation of employers

engaged in the building and construction Industry in the same geographic

area

The Trades Council and the Employers Council on behalf of

the local unions and employers associations within their respective

groups desire to establish construction industry investment program

for the benefit of the employee pension benefit plans which they or

their members cosponsor collectively the Plans Our firm has been
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

June 22 1984

Page

retained as special counsel by the Trades Council and the Employers

Council to assist in establishing the program

In brief foundation will be established pursuant to

written agreement among the Plans who want to participate in the

foundation The foundation will be administered by Board of Trustees

The trustees will be directed to establish procedures to allow the Plans

to acquire participations in construction period mortgage loans The

foundation will contact lending institutions in central Louisiana to

learn of the availability of participations In mortgage loans and pass

this Information along to its member Plans Each Individual Plan will

determine whether to participate in the proposed loan and the extent of

its participation This decision will be communicated to the

foundation which will tabulate the responses and Inform the lending

institution as to the aggregate amount of participation interests which

the Plans wish to acquire

The Plans participating in mortgage will establish

separate trust as the acquiring entity or each lending transaction

with the foundation acting as trustee The Plans will transfer the

funds required to the foundation which will forward these runds to the

lending institution The foundation will not take possession of any

funds or securities of the Plans and will have no investment

responsibilities serving merely as conduit through which the Plans

and lending Institutions can communicate to indicate mutual interest In

participating in mortgage loans

We respectfully request that you advise us that the Staff of

the Securities and Exchange Commission the Commission will not

recommend that the Commission take any enforcement action if the program

is organized and operated in the manner set forth in this letter

without registering the interests in the

trusts as securities under Section 21 of the

Securities Act of 1933 the 1933 Act in reliance

upon the exemption from the registration provisions

set forth in Section 3a2 of the 1933 Act

without registering the interests in the

trusts as securities under Section 12g of the

Securities Exchange Act of 1934 the 1934 Act in

the event that the statutory minimums specified in

that section are exceeded in reliance upon the

definition of exempt securities set forth In

Section 3a12 of the 1934 Act
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Cotnmission

June 22 1984

Page

without registering either the foundation

or the trusts as brokerdealers under the 1934 Act

either because the foundation and the trusts do not

fall within the definitions of brokerdealer

contained at Sections 3a4 and 3a5 of the

1934 Act or in reliance upon an exemption from the

brokerdealer registration requirement contained in

Section 15a1 of the 1934 Act or those persons

who deal only in exempt securities as defined in

Section 3a12 of that Act

without registering the foundation or the

individual trusts as investment companies under the

Investment Company Act of 1940 the Investment

Company Act In reliance upon the exclusions from

the definition of an Investment company set forth in

Sections 3c5 and 3c11 of the Investment

Company Act and

without registering the foundation or the

trusts as investment advisers under the Investmetit

Advisers Act in reliance upon an exemption from the

definition of investment adviser set forth in

Section 202a 11 of the Investment Advisers Act

DESCRIPTION OF PROPOSED OPERATIONS

As noted above the Trades Council and the Employers Council

desire to develop an alternative to the traditional investment

opportunities available to the employee pension benefit plans maintained

by their respective members The Plans are all qualified under

Section 401 of the Internal Revenue Code of 1954 as amended the

Code exempt from taxation under Section 501 of the Code and comply

with the requirements of the Labor Management Relations Act of 1947 as

amended 29 U.S.C.A H141 et seq 1973 and Supp 1983 the LMRA

and the Employee Retirement Income Security Act of 1974 29 U.S.C.A

fl0O1 et seq 1975 and Supp 1983 ERISA The Plans range in size

from $15 million to $20 million in total assets

All of the unions participating in the Plans are members of

the AFLCIO through affiliations with international unions Moreover

all the local unions are affiliated with the Baton Rouge Building and

Construction Trades Council confederation of local building and

construction trades unions which represent building and construction
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

June 22 1984

Page

tradesmen working in central Louisiana The Trades Council was

organized to coordinate employee benefits policies among the locals to

provide forum for employee grievance procedures and to serve as

focal point for the local unions contacts with the community All the

employers are members of the Baton Rouge Council of Construction

Employers This Employers Council constitutes cohesive bargaining

unit which bargains with the various local unions The local unions act

either separately or under the auspices of the Trades Council as the

locals may determine

Under the program the Trades Council and the Employers

Council will establish foundation to be known as the Baton Rouge

Building and Construction Industry Foundation the Foundation The

Foundation will be notforprofit unincorporated association organized

under and governed by the laws of Louisiana and will be qualified under

Section 501c of the Code The Foundation will provide that any

employee benefit plan qualified under Sections 401 et seq of the Code

and cosponsored by the Trades Council or any local union affiliated

with it or the Employers Council or any employer affiliated with it

may elect to participate in the Foundation if collective investment of

the Plans funds is not prohibited by the instrument creatin the Plan

The Plans which elect to participate in the Foundation will be

parties to and be governed by four documents

The Foundation Agreement

The Participation Agreement for Construction

Mortgage Loan

The Construction Industry Investment Plan with

Guidelines through 21 attached as Exhibit

to the Plan and

The Transactional Trust Agreement

Copies of these documents the Master Documents are included with

this letter as Exhibits and respectively

The Foundation will be administered by Board of Trustees

the Trustees Every Plan participating in the Foundation shall be

entitled to two Trustees on the Foundations Board one appointed by the

union cosponsor of the Plan and the other by the employer cosponsor of

the Plan The Trustees shall not receive any compensation for serving

on the Board of Trustees

The Foundation will allow the Plans to utilize portion of

their funds in way that would benefit both their members and the local
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

June 22 1984

Page

community Rather than investing in anonymous corporations or other

more traditional investment media the Plans hope to encourage new

construction within their jurisdictions and create jobs for their

members By creating an umbrella organization such as the Foundation

the Plans can contribute to the financing of larger number of

projects and involve themselves in more extensive projects The Plans

can also achieve the expertise and the economies of scale inherent in

larger investments Additionally the Foundation will allow the Plans

to minimize their investment risk by providing diversification among

types and locations of available investments that they could not

individually obtain

The Foundation will approach every bank savings and loan

association insurance company and mortgage broker in the central

Louisiana area and ask that they allow the Foundations members the

opportunity to participate in all construction period mortgage loans

made by them All such participations shall be made in accordance with

documents prepared by the Foundation unless the participating Plans

agree to use the paperwork of the lending institution

Upon receiving information from lending institutlolis regarding

an appropriate loan the Foundation shall transmit to all Plans all

materials received from all cooperating financial institutions The

Foundation will not sponsor screen analyze or recommend in any way

any proposals brought to it and the individuals representing the Plans

will take all proposals presented to them back to their respective Plans

for decision Each individual Plan through its trustees or other

investment manager shall then determine If it desires to participate in

the specific loan opportunity and if so the amount of its

participation The Plans would relay their decisions to the Foundation

which would in turn inform the lending institution of the aggregate

amount of participation desired The participating Plans would then

create trust the Trust by entering into trust agreement with the

Foundation as trustee

Upon the formation of the Trust each individual Plan would

forward the amount of its participation to the Foundation In the form of

checks or federal funds drafts made payable to the lending institution

and the Foundation would collect these checks and deliver them to the

lending institution The lending institution would keep all such

contributions productively invested until such time as te funds are

required Any income of the Trust would be allocated among the various

participating Plans by the lending institution which would prepare and

deliver to the Foundation checks made payable to the individual Plans

The Foundation would then distribute these checks to the Plans This
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

June 22 1984

Page

administrative procedure would provide maximum protection of the funds

of the Plans by minimizing the opportunity for and effect of any

misappropriation of funds by the Foundation since the Foundation would

not have any discretion over the investment management or disposition

of Trust assets At the same time funds of the transaction trusts

could be conveniently and efficiently transferred to the lending

institution with minimum of involvement by the lending institution

Any loan participation fees collected from the borrowers at

the time that theloan is made will be immediately allocated among the

participating Plans by the lending institution and distributed directly

to the Plans who are members of that particular Trust through the

Foundation as described above Any expenses incurred by the Foundation

will be assessed to and reimbursed by the individual Plans Thus the

Foundation will not receive any compensation and it will not hold any

funds in reserve or exercise any investment or management responsibility

relating to reserves

The loan transactions proposed to be entered into through the

Foundation may fund projects which will be built by employers whose

employees are covered by the Plans These transaction8- would -be

prohibited by the terms of ERISA absent an exemption from Section 406 of

that act class exemption known as Prohibited Transaction

Exemption 761B PTE 761B has been adopted by the Department of

Labor the Department and the Internal Revenue Service the

Service for transactions similar in nature to those described here

The program as herein described does not fall within PTE 761B only

because the trustees of the Plans which probably will not include

bank insurance company or savings and loan association will make the

investment decisions on behalf of the Plans The Foundation has filed

an application with the Department for an administrative exemption under

ERISA Section 408a based on the criteria of PTE 761B For

purposes of your response to this letter the Staff may assume that such

ruling will be received

The Foundation will be subject to many conditions imposed by

the Department resulting from their review of the exemption application

These conditions are designed to help protect the employee/beneficiaries

of the Plans by insuring that the Foundation will be presented only with

loan opportunities already approved by the lending institution offering

the participations limiting the risks which the Foundation may be

exposed to and preventing selfdealing between the Plans their

trustees and the sponsoring employers The Foundation has incorporated

all applicable conditions of PTE 761B into the Master Documents and

In addition has adopted twentyone additional guidelines submitted by
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

June 22 1984

Page

the Department which are attached to the Construction1 Industry Invest

ment Plan included as Exhibit to this letter The Foundation

through the members of its Board of Trustees is already subject to

common law and contractual fiduciary duties to the Plans and to the

general requirements of ERISA and the LMRA

Securities Act of 1933

Interests in the Trusts to be held by the Plans could be

deemed to be securities as defined in Section 21 of the 1933 Act

Section 3a2 exempts the following from the registration provisions

of that act

any interest or participation in single

trust fund which interest or participa

tion is issued in connection with stock bonus

Under PTE 761B loans which observe the following

conditions may be made by an employee benefit plan to an employer who

has employees covered by the plan only construction eriod loans

may be made and commitment for permanent financing must have been

made by someone other than the plan before the loan can be made the

decision to make the loan must be made by an independent bank or

insurance company which meets the requirements of Section 338 of

ERISA or by savings and loan association subject to regulation by the

Federal Home Loan Bank Board pursuant to its sole discretionary

authority or control regarding management of plan assets the bank

insurance company or savings and loan association must commonly make

such loans on similar terms and conditions from its own funds and the

loan must satisfy their qualifications established for the review of

such loans immediately after making the loan the aggregate amount

of investments including loans of an individual plan in any one

employer participating in the plan cannot exceed ten percent of the fair

market value of the plans assets and the aggregate amount of

investments of the plan in loans to all its participating employers

cannot exceed thirtyfive percent of the plans fair market value and

certain records of the plan must be retained and made available to

specified individuals including plan participants and beneficiaries

for six years from the date of the loan In addition the Department

has required that each Trust will not acquire more than 50 percent

participation in any individual construction loan This limitation will

not affect the ability of the Trust to effect enforcement of the loan

documents including foreclosure on the mortgage in the event of

default under the loan documents
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

June 22 1984

Page

pension or profitsharing plan which meets the

requirements for qualification under Section 401 of

the Internal Revenue Code of 1954 other than

any suchi plan the contributions under

which are held in single trust fund maintained by

bank for single employer and under which

an amount In excess of the employers contribution

is allocated to the purchase of securities

issued by the employer or by any company directly or

indirectly controlling controlled by or under

common control with the employer ii which covers

employees some or all of whom are employees within

the meaning of Section 401c1 of such Code or

iiiwhich is plan funded by an annuity contract

described in Section 403b of such Code

If the interests in the Trusts are deemed to be securities it

is our belief that these interests are exempted from the registration

requirements of the 1933 Act by Section 3a2 of that act

The availability of this exemption turns in parf on whether

the Trusts are considered single trusts or collective trusts which must

be maintained by bank To constitute single or noncollective

trust the member Plans and their underlying sponsors must be

sufficiently related to demonstrate their commonality of interests in

monitoring the administration of the Trusts

We take as our starting point the analysis contained in

Communications Workers of America 1980 Fed Sec Rep CCH 176321

avail Jan 27 1980 In that case the Communications Workers of

America the CWA organized Savings and Retirement Trust the CWA

Trust limited to employees of the CWA its locals and employees of

various employers In bargaining units represented by the CWA The CWA

Trust was to be administered by Board of Trustees consisting of

individuals representing the CWA and corporate trustee selected by the

employers All members of the Board of Trustees were entitled to

exercise equal authority over all aspects of administration of the CWA

Trust including the selection of investments The CWA Trust was

established under the sponsorship of the CWA solely for the benefit of

its members and not as means of promoting the sale of the investment

services of any financial institution

The structure of the Foundation and the Trusts is virtually

identical to that of the CWA Trust Membership in the Foundation is

limited to employees of employers in bargaining units represented by the
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

June 22 1984

Page

member locals of the Trades Council The Foundations Board of Trustees

is comprised of individuals representing both the local unions and the

participating employers although no corporate trustee Is involved All

members of the Board will be entitled to exercise equal authority over

all aspects of the Foundations administration keeping in mind that

Investment decisions are made by the member Plans Finally the

Foundation was established under the sponsorship of the Trades Council

and the Employers Council solely for the benefit of their

member/employees and not as means of promoting the sale of investment

services of any financial Institution or intermediary This last factor

was described In the Communications Workers correspondence as the

hallmark of noncollective trust

Similarly the sale without registration of Interests in

trusts organized pursuant to construction industry investment program

virtually identical to the one described here was viewed with approval

by the Staff in Its letter to this firm concerning the Northwestern Ohio

Building and Construction Trades Foundation May 1984 In that

case the Staff pointed to the following four factors which it found

particularly important

All of the local unions were related

through their membership in body equivalent to the

Trades Council

The member plans would maintain direct

and continuous involvement in the operations of the

trusts

The employees of each employer

participating In the foundation program were

represented by one of the local unions and

The operations of each trust were to be

governed by set of master documents which all

participating plans would be parties to

All of these factors are present in the instant situation

The participating unions are related through their affiliations with the

AFLCIO and the Trades Council The decisions to be made by the

trustees of each member Plan and by the Foundations Board of Trustees

requires direct and continuous Involvement and responsibility of the

member Plans and their sponsors on behalf of their member/employees

All of the employees of each employer participating in the Foundation
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

June 22 1984

Page 10

are represented by one of the participating local unions Finally the

operations of each Trust will be governed by the Master Documents

No interest in the Trust is expected to be issued in

connection with or held by any plan which covers employees some or all

of which are employees within the meaning of Section 401c1 of the

Code or any plan funded by an annuity contract described in

Section 403b of the Code None of the Trust funds will be used for

direct investment by members of the public and none of the funds is

presently expected to include assets of any Keogh plans or Individual

Retirement Accounts To the extent that single trust fund Is created

for single employer it will not be maintained by bank but by the

Foundation and in any event the Foundation will not cause that trust

fund to Invest an amount In excess of the employers contribution for

the purchase of securities issued by the employer or by any company

directly or indirectly controlling controlled by or under common

control with the employer

We therefore believe that assuming the interests of the Plans

in the Trusts are securities under Section 21 .of the 1933 Act the

interests will be exempted from the registration requiremetts of that

act by the provisions of Section 3a2

Securities Exchange Act of 1934 Registration of Securities

Section 12g of the 1934 Act requires issuers with assets

exceeding $1000000 and class of equity security other than an

exempted security held of record by 500 or more persons and who meet

the other conditions specified therein to register the class of

security with the Commission

Exempted security is defined in Section 3a12 of the 1.934

Act as including

any interest or participation in single

trust fund which interest participation or

security is issued in connection with stock

bonus pension or profitsharing plan which meets

the requirements for qualification under Section 401

of the CodeJ other than any plan described

In clause or of this paragraph

which covers employees some or all of whom are

employees within the meaning of Section 401c of

such Code or ii which is plan funded by an
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

June 22 1984

Page 11

annuity contract described in Section 403b of such

Code

Assuming that Section 12g applies to the Trusts the

interests of the Trusts need not be registered under the provisions of

Section 12g because the interests are exempted securities under

Section 3a12 The language of Section 3a12 is equivalent to

that contained in Section 3a2 of the 1933 Act exempting interests in

single trust fund issued in connection with stock bonus pension or

profitsharing plan qualified under Section 401 of the Code See letter

from the Staff to this firm concerning the Northwestern Ohio Building

and Construction Trades Foundation May 1984

Thus we ask to be advised that Interests in the Trusts need

not be registered under the provisions of Section 12g1 of the 1934

Act

Securities Exchange Act of 1934 Registration as BrokerDealer

Section 3a4 of the 1934 Act provides The term broker

means any person engaged In the business of effecting trawsactions in

securities for the account of others but does not include bank

Section 3a5 of the 1934 Act provides

The term dealer means any person engaged in the

business of buying and selling securities for his

own account through broker or otherwise but does

not Include bank or any person Insofar as he buys

or sells securities for his own account either

individually or in some fiduciary capacity but not

as part of regular business

Section 15a1 of the 1934 Act provides in part

It shall be unlawful for any broker or dealer

to make use of the mails or any means or

instrumentality of interstate commerce to effect any

transactions in or to induce or attempt to induce

the purchase or sale of any security other than an

exempted security or commercial paper bankers

acceptances or commercial bills unless such broker

or dealer is registered In accordance with

subsection of this section
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

June 22 1984

Page 12

It might be argued that either or both the Foundation and the

individual Trusts would have to register as brokers or dealers The

individual Trusts however will not be engaged in the business of

effecting transactions in securities either for their own account or on

behalf of their participating Plans As indicated above each Trust

will enter into only single transaction the purchase of

participation In mortgage loan and will dissolve upon the completion

of that transaction To the extent that these participation interests

may constitute securities they are exempted securities under

Section 3a12 of the 1934 Act as explained above

We also believe that the Foundation need not register as

broker or dealer The Foundation will not be acquiring securities on

its own behalf and thus will not be acting as dealer As It will be

acting merely as conduit to facilitate the collective purchase of

participations by the Plans neither will the Foundation be acting as

broker The Foundation will neither hold funds nor have any investment

responsibility but will act merely in an administrative capacity to

transfer Information between the lending institutions and the Plans It

will act only on the Plans behalf will no.t solicit additional

customers or otherwise seek to act on behalf of anyone other -than the

Plans and will not sponsor analyze or recommend any loan

participation proposals Finally the Foundation will not undertake any

sales or promotional efforts and will receive no compensation from the

Plans for any actions taken by it on behalf of the Trusts but would

receive only reimbursement for expenses incurred In performing its

ministerial functions

Even assuming the Foundation is acting in manner which

brings it within the definition of brokerdealer its activities will

be limited to dealings in the mortgage participation interests

securities which are exempted securities under Section 3a12 of the

1934 Act Under Section 15a1 of the 1934 Act persons effecting

transactions only in exempted securities are exempted from the

registration requirements contained in that section See the letter

from the Staff to this firm concerning the Northwestern Ohio Building

and Construction Trades Foundation May 1984

We therefore believe that neither the Trusts nor the

Foundation need to register as brokerdealer

Investment Company Act of 1940

We do not believe that the purchase of participations in

construction period mortgage loans would constitute the acquisition of
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

June 22 1984

Page 13

security Even if the participations are viewed as securities however

the Foundation does not fall within the definition of investment

company at Section 3a1 of the Investment Company Act as it will

not engage in the business of investing in securities but will merely

acquire such securities on behalf of each Trust in its capacity as

trustee and passively hold them on behalf of the Trusts It could be

argued however that each Trust will issue equity interests to the

Plans and will engage in the business of owning tori holding

securities having value exceeding 40 per centum of the value of

such issuers total assets Si Investment Company Act

Section 3a3

Section 3c provides various exemptions from the definition

of investment company In particular companies meeting the following

criteria are not within the definition of investment company

Any person who is not engaged in the

business of issuing redeemable securities

faceamount certificates of the installment type or

periodic payment plan certificates and who is

primarily engaged in one or more of the following

businesses purchasing or otherwise

acquiring mortgages and other liens on and interests

in real estate

11 Any employees stock bonus pension or

profitsharing trust which meets the requirements

for qualification under Section 401 of the Internal

Revenue Code of 1954 or which holds only assets of

governmental plans described in section 3a2C

of the Securities Act of 1933

Section 3c5C The Plans will hold equity interests

in the Trusts which will not be redeemable except upon withdrawal from

or liquidation of the Trust Interests in the Trusts will not be made

available to the public but only to those Plans which elect to

participate in the Trust through their involvement with the Foundation

The participation interests in construction period mortgage

loan held by Trust would be an interest in real estate where each loan

is fully secured by real property and the participation interests held

by the Trust are sufficient to give the Foundation as trustee for the

Trust the right by itself to foreclose the mortgage securing the loan

in the event of default See MGIC Mortgage Corporation avail

August 1974 cited in the letter from the Staff to this firm
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

June 22 1984

Page 14

concerning the Northwestern Ohio Building and Construction Trades

Foundation April 20 1984 Because in the present situation each

loan would be fully secured by real property and the participation

interests held by Trust would give the Foundation as trustee for the

Trust the right by itself to foreclose the mortgage securing the loan

in the event of default it appears that Trust would be primarily

engaged in purchasing or otherwise acquiring mortgages and other liens

on and interests in real estate

Section 3c11 The employee benefit plans underlying

the Trusts and the Foundation are excluded from the definition of an

investment company by the first clause of Section 3c11 of the

Investment Company Act

The Trusts themselves may also be excluded from the definition

of an investment company by the first clause of Section 3c11 of the

Investment Company Act The Staff stated in Communications Workers

supra that the first clause of Section 3c11 of the Investment

Company Act and the words single trust fund in Section 3a2

of the 1933 Act describe the same type of trust As indicated above

interests In the Trusts will fall within Section 3a2 of the 1933

Act and therefore the Trusts would fall within the first clause of

Section 3c11 of the Investment Company Act

We therefore believe that assuming the Trusts fall within

Section 3a of the Investment Company Act the Trusts will be exempt

from registration as an investment company by the provisions of either

Section 3c5 or Section 3c11 as explained above

Investment Advisers Act of 1940

Section 202a11 of the Investment Advisers Act defines an

investment adviser as

any person who for compensation engages in the

business of advising others either directly or

through publications or writings as to the value of

securities or as to the advisability of Investing

in purchasing or selling securities or who for

compensation and as part of regular business

issues or promulgates analysis or reports concerning

securities

In our interpretation neither the Trusts nor the Foundation

will fall within the definition of investment adviser Assuming that
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

June 22 1984

Page 15

the Plans will be purchasing securities as defined in

Section 202a18 of the Investment Advisers Act through the Trusts

it could be argued that the Foundation will be in the business of

advising others namely the Plans as to the advisability of investing

in purchasing or selling securities close analysis of the

Foundations duties however makes it clear that the Plans have sole

responsibility for choosing among loan participation opportunities and

that the Foundation provides no advisory services to the Plans The

Foundation merely transmits to all Plans all information received from

all cooperating financial institutions It is then the responsibility

of the individual Plans to determine whether they desire to participate

in any given loan The Foundation will not screen in any way proposals

brought to it and the individuals representing the Plans will take all

proposals presented to them back to their respective Plans for decision

The Foundation thus has no part in the investment decisions of the

Plans

In Texas Newsletter avail January 23 1984 it was stated

that no action would be recommended to the Commission if newsletter

without registering under the Investment Advisers Act printed

information about securities where any such information about asecurity

would be prepared by the issuer of the security and would be presented

as an advertisement for the security Because the Foundation would

distribute only information about participation in construction

period mortgage loan prepared by the cooperating financial institution

issuing the participation identify such information as having been

prepared by the cooperating financial institution an transmit all

information given to the Foundation without commenting on screening or

evaluating the information in any manner we do not consider the

Foundation to be engaged in the business of issuing or promulgating

analyses or reports concerning securities Thus we do not regard the

Foundations proposed service to bring the Foundation within the

definition of investment adviser contained in Section 202a11 of

the Investment Advisers Act See the letter from the Staff to this firm

concerning the Northwestern Ohio Building and Construction Trades

Foundation April 20 1984

Because Trusts sole function would be to hold

participations in particular construction period mortgage loan

selected by the Plans participating in the Trust Trust would neither

be engaged in the business of advising others about the value of

securities or the advisability of investing in securities nor of

issuing or promulgating analyses or reports concerning securities as

part of regular business Accordingly Trust would not be an
Office of Chief Counsel

Division of Corporation Finance

Securities and Exchange Commission

June 22 1984

Page 16

investment adviser as defined by Section 202a11 of the Investment

Advisers Act

REQUESTED NOACTION POSITION

Based upon the foregoing facts statutes and releases the

prior noaction positions taken by the Commission Staff and our

analysis of the policy considerations and statutes involved we

respectfully request that the Staff advise us that it will not recommend

to the Commission that any action be taken under the 1933 Act or 1934

Act regarding the proposed operations of the Foundation and the Trusts

as summarized in this letter

We ask that you forward an enclosed copy of this letter to the

Office of Chief Counsel for the Division of Investment Management for

confirmation that the Foundation and the Trusts need not be registered

as investment companies under the Investment Company Act or as

investment advisers under the Investment Advisers Act and to the Office

of Chief Counsel for the Division of Market Regulation for confirmation

that the Foundation and the Trusts need not be registered as

brokerdealers under the 1934 Act

Please contact the undersigned if you have any questions

Very truly yours

S13UMAKER LOOP KENDRICK

By

CLC/sjs

Attachments

Enclosures

cc Marc Gertner Esq
1984

RESPONSE OF THE OFFICE OF CHIEF COUNSEL

DIVISION OF INVESI4ENT MANAGEIIENT

Our Ref No 84204-CC

Baton uge Building and

Construction Industry

Foundation

File No 1323

We would not rectanend that the Ccgnmission take any enforcement

action under the Investment Cpany Act of 1940 or the Investment

Advisers Act of 1940 against the Baton 1uge Building and Construction

Industry Foundation or any of the related trusts it serves as trustee

if they proceed with their proposal without registering as either in

vestment cnpanies or investment advisers See Northwestern Ohio

Building Construction Trades Foundation pub avail May 21 1984

Our position is based on the facts and representations in your letters

and exhibits of June 22 and July 17 1984

We understand that the Division of Corporation Finance and the

Division of Market Regulation will be writing separately to address the

issues you have raised regarding the Securities Act of 1933 and the

Securities Exchange Act of 1934

Thanas Harman

Attorney
EXHIBIT

BATON ROUGE BUILDING AND

CONSTRUCTION INDUSTRY FOUNDATION

Shuinaker Loop Kendrick

North Courthouse Square

1000 Jackson

Toledo Ohio 43624

800 6625056
TABLE OF CONTENTS

Page

Section 2.01

Section 2.02

Section 2.03

Section 2.04

Section 2.05

Section 2.06

Section 2.07

Section 2.08

Section 2.09

Section 3.01

Section 3.02

ARTICLE IV TRANSACTION PROPOSAL REVIEW PROCEDURE

ARTICLE TRANSACTION TRUSTS

ARTICLE VI EXPENSES REIMBURSEMENTS ADMINISTRATION 10

Expenses

Expense Reimbursement Payments From

Transaction Trusts

Regulatory Compliance

Forms Rules and Procedures

ARTICLE DEFINITIONS

Section 1.01 Agreement

Section 1.02 Delegate

Section 1.03 ERISA

Section 1.04 Member

Section 1.05 Vote

Section 1.06 Corporate Trustee

Section 1.07 Foundation

ARTICLE II CREATION MEMBERS DELEGATES

The Foundation

No Agency or Fiduciary Relationship Created

Founder Members

Additional Members

Termination of Membership

Voting Power of Members

Delegates

Successor and Substitute Delegates

Compensation of Delegates

ARTICLE III OFFICERS COMMITTEES

Officers

Committees

Section 4.01 Meetings

Section 4.02 Subscription of Financing Proposals

Section 4.03 Reliance by Third Parties

Section 6.01

Section 6.02

Section 6.03

Section 6.04

10

10

10

10
Page

ARTICLE VII GENERAL PROVISIONS 11

Section 7.01 Governing Law 11

Section 7.02 Notices 11

Section 7.03 Amendments 11

Section 7.04 Headings 11

Section 7.05 Severability 11

Section 7.06 Qualified Status 11

Section 7.07 No Third Party Rights 12

Section 7.08 Counterparts Effectiveness 12

Section 7.09 Termination 12

ii
BATON ROUGE BUILDING AND

CONSTRUCTION INDUSTRY FOUNDATION

THIS AGREEMENT is entered into as of the __________ day of

_________________ 1984 by and among the Founder Members which are

qualified pension trusts signatory hereto

WHEREAS each of the parties to this Agreement is Section

302c TaftHartley trust qualified under the Internal Revenue Code of

1954 the Code and exempt from federal income tax by virtue of

Section 501a of the Code and from applicable state income taxes on

similarbasis

WHEREAS it is the desire of the parties to this Agreement to

provide procedure and system whereby representatives of one or more of

such parties and other Members may meet from time to time to evaluate

investment proposals presented to them for the purposes of providing

useful information regarding investment opportunities to such parties

and to enhance their portfolio diversification in keeping with the

Employee Retirement Income Security Act of 1974 as amended ERISA

NOW THEREFORE in consideration of the foregoing and of the

mutual agreements contained herein the parties hereto agree as follows
ARTICLE

DEFINITIONS

As used in this Agreement unless the context clearly

indicates otherwise the following words and terms shall have the

meanings here set forth

Section 1.01 Agreement The term Agreement means this

instrument establishing the Baton Rouge Building and Construction

Industry Foundation and shall include all exhibits amendments

modifications supplements and addenda hereto

Section 1.02 Delegate The term Delegate means delegate

to the Foundation appointed pursuant to Section 2.07 or Section 2.08

hereof

Section 1.03 ERISA The term ERISA means the Employee

Retirement Income Security Act of 1974 as amended and regulations of

the Department of the Treasury and the Department of Labor promulgated

thereunder

Section 1.04 Member The term Member means both the

Founder Members who are the original signatories to this Agreement and

such Additional Members as may hereafter and from time to time be

admitted pursuant to the provisions of Section 2.04 hereof The term

shall not include any Founder Member or Additional Member whose member

ship shall have terminated prior to the pertinent determination of

Member status

Section 1.05 Vote The term Vote unless greater number

is specified in the specific provision means either the affirmative

vote of simple majority of the total voting power of the Members

represented at duly called meeting of the Foundation or the

affirmative written consent of all Members The vote or written consent

of any Member in order to be valid must be given by both of its then

appointed Delegates or substitute Delegates as provided In Section

2.07 hereof

Section 1.06 Corporate Trustee The term Corporate

Trustee means the corporate institution with Trust powers if any

selected pursuant to the provisions of Article

Section 1.07 Foundation The term Foundation means the

Baton Rouge Building and Construction Industry Foundation as created by

this Agreement and as it may be subsequently amended
ARTICLE II

CREATION MEMBERS DELEGATES

Section 2.01 The Foundation There is hereby created under

Louisiana law the Baton Rouge Building and Construction Industry

Foundation The purposes of the Foundation are to provide procedure

and system whereby representatives of Members may gather from time to

time to evaluate investment proposals presented to them so that such

representatives may provide useful information to the respective

Members and means through which such Members can invest portions of

their respective funds as they may from time to time independently

determine in such ventures as real estate equity and financial

transactions thereby diversifying their respective investment

portfolios

Section 2.02 No Agency or Fiduciary Relationship Created

This Agreement does not create any agency relationship among any of the

parties hereto at any time nor is any individual Delegate officer of

the Foundation or committee except as herein expressly provided

authorized to act on behalf of Member or Members of the Foundation or

to incur any liability or expense on behalf of the Foundation or any of

its Members Each Member hereby acknowledges and agrees that no other

Member nor its Delegates nor the Foundation or any of the Foundations

officers or agents undertakes any fiduciary responsibility to such

Member or to its beneficiaries and each Member waives and releases any

claim based on any such potential fiduciary relationship Each Member

hereby acknowledges that through its Delegates It will make its own

independent decisions whether or not to participate in any investment

proposal and the extent of that participation and that it does not rely

upon advice or information from the Foundation any other Member or any

of the officers or agents of the Foundation in connection with such

decisions

Section 2.03 Founder Members The Founder Members of the

Foundation are those trusts which are signatories to this Agreement

Section 2.04 Additional Members An eligible trust may be

admitted as an Additional Member of the Foundation upon the Vote of the

Members of the Foundation and shall thereafter have all rights

privileges and obligations of membership as provided herein and as this

Agreement shall hereafter be amended from time to time trust shall

be eligible if and so long as it Is trust exempt from federal income

taxation by virtue of Section 501 of the Code and exempt from

applicable state Income taxation on corresponding basis Upon

admission each such Additional Member shall execute an adoption
agreement in substantially the form last approved by Vote for use by the

Foundation

Section 2.05 Termination of Membership Any Member may

terminate its membership in the Foundation upon written notice to the

Foundation Members status as such shall automatically terminate

when it ceases to be an eligible trust as described in Section 2.04

hereof termination of membership by Member shall not affect any

investment theretofor made by the Member prior to its termination

Section 2.06 Voting Power of Members On any matter

submitted to Vote of the Members of the Foundation each Member shall

have one vote

Section 2.07 Delegates Each Member shall be represented on

the Foundation by two individuals Delegates appointed by such

Member One such Delegate shall be trustee of such Member who has

been selected by labor organization and the other Delegate shall be

trustee of such Member who has been selected as an employer trustee of

such Member The initial Delegates of the Founder Members are hereby

appointed by the respective Founder Members as set forth on Exhibit

attached hereto Each Additional Member shall provide the Foundation

with written notification of initial Delegates appointed by the

Additional Member

Section 2.08 Successor and Substitute Delegates Member

may by written notice to the Foundation remove any of its previously

appointed Delegates and appoint successor Delegate or Delegates

provided that it must comply with Section 2.07 hereof Delegate or

Member may by written notice to the Foundation authorize substitute

Delegate as to particular meeting specified in such natice Each such

notice shall be presented to the meeting and filed with the minutes of

the meeting Delegate may resign by written notice to the Foundation

and to the Member which appointed such Delegate The resignation of

Delegate shall be effective immediately unless otherwise stated in the

notice

Section 2.09 Compensation of Delegates No Delegate shall

receive any compensation from the Foundation
ARTICLE III

OFFICERS COMMITTEES

Section 3.01 Officers The Delegates may from time to time

by Vote select one of their number to act as Chairman and one to

act as CoChairman When the Chairman is selected from among the

Delegates who are union representatives the CoChairman shall be

selected from among the Delegates who are management representatives

and vice versa The Delegates may also by Vote elect Secretary who

need not be Delegate The Chairman shall preside at meetings of the

Delegates of the Foundation The CoChairman shall serve as Chairman in

the absence of the Chairman from any meeting The Secretary shall

distribute agendas of such meetings as provided elsewhere herein shall

keep and maintain minutes of the meetings of the Foundation and shall

retain copies of all notices given to or by the Foundation under this

Agreement and written consents of the Members permitted by Section 1.05

hereof The Foundation shall have such other offices and officers as

the Members may establish by Vote Each officer shall serve for

period of one year and until his successor is elected or until his

earlier resignation retirement death or disability An officer may

serve successive terms at the Vote of the members

Section 3.02 CommIttees The Foundation shall have such

committees as its Members may establish by Vote with such duties and

members as the Members shall determine by Vote The members of each

committee may elect Chairman CoChairman and Secretary
ARTICLE IV

FINANCING PROPOSAL REVIEW PROCEDURE

Section 4.01 Meetings The Delegates shall meet on such

dates and at such meeting places as the Delegates shall from time to

time establish by Vote with at least one meeting per quarter The

Delegates may by Vote determine schedule for periodic regular meetings

and procedure for the calling of special meetings

Prior to each such meeting the Secretary shall use his best

efforts to arrange an agenda for such meeting which among other things

shall list all financing proposals which will be presented at such

meeting and which agenda he shall endeavor to deliver to Delegates seven

days prior to the meeting

Delegates representing simple majority of all Members shall

constitute quorum at meeting Any Delegate may participate in

meeting by conference telephone provided all Delegates can hear each

other and be heard by all and any Vote or action taken by such Delegate

shall be confirmed In writing and delivered to the Foundation within

three business days of the voting or other action

In addition Member may provide proxy for Delegate to be

voted by the other Delegate

Section 4.02 Subscription to Financing Proposals As part

of each meeting of the Foundation financial proposals for construction

mortgage loans or other investment opportunities may be presented by

representatives of local lending institutions for review by the Members

The Delegates shall solicit receive consider and transmit all binding

enforceable commitments made by all cooperating banks and savings and

loan associations whether or not they are for loans to local or

nonlocal developers for local or nonlocal construction projects or for

unionbuilt or nonunionbuilt construction projects Upon receipt of

this information from the institutions the Delegates of each Member

shall notify the full Board of Trustees or other designated

representatives of each Member of the Foundation of all information

received by them The trustees of the Members shall then determine

if they desire to participate In the specific

construction mortgage loan and

if so the amount of their participation

The Delegates of the Foundation shall accumulate the responses

from all of the Members and shall advise the lending institution of its
desire to participate or not and if so the amount of the prticipa

tion The amount of the participation shall be the amount of the

aggregate participations by the individual Members Each said loan

shall be deemed and construed to constitute separate and distinct

legal transaction and shall be documented as separate trust and the

Delegates shall maintain their books and records of account accordingly

Section 4.03 Reliance by Third Parties No borrower

broker mortgage banker correspondent investment advisor agent or any

other third party shall be entitled to rely upon any action of any

Member or Delegate of the Foundation The Foundation itself shall have

no authority to issue financing commitment Commitments as to

particular transactions shall be issued if at all by an appropriate

Transaction Trust pursuant to the provisions of Article hereof
ARTICLE

TRANSACTION TRUSTS

When financing proposal has been subscribed in whole or in

part as promptly as practicable thereafter those Members who have

subscribed to such financing proposal the Beneficiaries shall form

and fund Transaction Trust in accordance with the provisions of this

Article

Transaction Trust shall be formed by the execution in

counterparts or otherwise by the Beneficiaries and the Foundation as

Trustee of Transaction Trust with such modifications as such

Beneficiaries and the Foundation shall unanimously find acceptable

which shall be conclusively evidenced by their respective signatures

thereon

In order to assure that no Member who undertakes to partici

pate in financing transaction with other Members may be embarrassed by

the financial inability of Member to fund its portion of the financing

at the specified time each Beneficiary shall concurrently with its

execution of its Transaction Trust Agreement fund in cash its share of

the participation in the subject financing proposal and Transaction

Trust

Such Transaction Trust shall thereafter promptly execute and

deliver such commitment and other documents as shall be approved by

counsel

The Trustee shall then enter into Participation Agreement

with the bank savings and loan association or other financial organi

zation which shall act as the Lead Lender to service the Transaction

The Trustee may but shall not be required to engage Corporate

Trustee for the aggregation and representation of the collective

interests of the Beneficiaries where it is legally necessary or in the

best interests of the Beneficiaries to do so

All participations purchased by the Members and taken by the

Foundation as Trustee shall be coparticipations with the originating

bank or savings and loan association and not the purchase of an interest

in any existing investment from the bank or savings and loan

The aggregated interest of all Members in single participa

tion shall not exceed fifty per cent 50% of the total loan commitment

In all participations the Members shall receive from the lead

lender as part of their participation
interest at or above the prevailing market rate of

interest for comparable commercial financing transactions and

their pro rata share of the financing points to the

extent the points represent return on the loan and not compen

sation and/or reimbursement to the originating bank or savings

and loan association for the actual expenses incurred and/or

services rendered in servicing the construction mortgage loan
ARTICLE VI

EXPENSES REIMBURSEMENTS ADMINISTRATION

Section 6.01 Expenses The Foundation may incur and as

funds are available pay such expenses as may be approved by Vote of

its Members including the reasonable expenses heretofore incurred in

connection with its organization

Section 6.02 Expense Reimbursement Payments From Transac

tions The representatives of the lending institutions from whom loans

are bought or with whom loans are made shall be requested to obtain from

each prospective borrower commitment to pay the Foundation as Trustee

of the particular transaction at the time such transaction documents

are established an amount sufficient to reimburse both the

organizational and legal expenses of such transaction and an allocated

portion of the organizational and operating expenses of the Foundation

As to each transaction such allocated portion of the organizational and

operating expenses of the Foundation shall be determined by Vote of the

Members All such amounts shall be paid directly to the Foundation to

reimburse the Foundation for that portion of Its organizational and

operating expenses which are allocated to such transaction

No person other than an eligible trust may make any contribu

tion to the Foundation

Section 6.03 Regulatory Compliance The Foundation shall

apply for such federal and state taxexempt status tax rulings federal

and state securities noaction letters and ERISA exemptions as

determined by Vote of the Delegates or by duly delegated officers of

the Foundation on recommendation of counsel

Section 6.04 Forms Rules and Procedures The Foundation

may adopt such forms rules and procedures including without

limitation financing procedures as the Delegates may determine from

time to time by Vote

10
ARTICLE VII

GENERAL PROVISIONS

Section 7.01 Governing Law This Agreement has been

executed and delivered in the State of Louisiana and shall be

exclusively governed by and construed and enforced in accordance with

the laws of such state and any applicable laws of the United States

Section 7.02 Notices Any legal notice given pursuant to

this Agreement shall be in writing and shall be personally delivered or

sent by registered or certified mail postage prepaid to each party to

be notified In the case of notice directed to Member separate

copies shall be sent to each of its then Delegates at Its respective

address set forth on Exhibit attached hereto or to such other address

as such party shall earlier have designated by notice given pursuant to

this provision notice sent by mail shall be deemed received five

business days after Its deposit in the United States mail

Section 7.03 Amendments This Agreement may be amended only

by writing signed by the then Members holding at least majority of

the total voting power of the Foundation Such amendments shall be made

only after due consideration of applicable tax securities ERISA and

other laws and regulations

Section 7.04 Headings The headings of the Articles and

Sections of this Agreement are for convenience only and shall not be

deemed to affect the Interpretation or validity of any part of this

Agreement

Section 7.05 Severability In the event any provision of

this Agreement in whole or in part or the application of any provision

of specified situation is held to be invalid or unenforceable by the

final judgment of court of competent jurisdiction after appeal or the

time for appeal has expired such invalidity shall be limited to such

specific provision or portion thereof or to such situation and this

Agreement shall be construed and applied in such manner as to minimize

such unenforceability This Agreement shall otherwise remain in full

force and effect

Section 7.06 Qualified Status It is the intended purpose

of the parties to this Agreement that the Foundation shall be and at all

times remain exempt from federal and state income taxes The Foundation

shall avoid the receipt of income or payments which are inconsistent

with the taxexempt status of the Foundation and its Members No part

of any net earnings of the Foundation shall inure to the benefit of any

private person If any court or administrative ruling holds that any

11
provision of this Agreement or any of the procedures practices rules

or documents of the Foundation are inconsistent with applicable

qualification requirements under presently existing laws and/or regula

tions or any laws or regulations hereinafter enacted or adopted any

such provision procedure practice rule or document shall be

nullified and the Members shall thereafter promptly attempt to make

such changes as may be necessary to retain such status while fully

accomplishing the purposes of this Agreement

Section 7.07 No Third Party Rights This Agreement is for

the benefit only of the parties hereto and their respective successors

and shall not be deemed to confer any rights upon any third parties

Section 7.08 Counterparts Effectiveness This Agreement

may be signed in two or more counterparts all of which shall con

stitute but one single agreement This Agreement shall not be

effective until executed by each party for whom signature line is

provided below

Section 7.09 Termination This Agreement shall terminate on

December 31 2010 unless earlier terminated or extended by Agreement of

all then Members On termination the Members shall be provided with

written accounting which shall be audited with respect to the final

fiscal period of the Foundation Any debts and liabilities of the

Foundation shall be paid or provided for and any remaining assets of

the Foundation shall be distributed equally among the then Members

provided that the Delegates shall make different disposition if

necessary to avoid adverse tax consequences to the members

12
IN WITNESS WHEREOF each of the Founder Members hasexecuted

and delivered this Agreement as of the date first above written

BATON ROUGE BUILDING AND

CONSTRUCTION INDUSTRY FOUNDATION

I.B.E.W LOCAL NO 955ELECTRICIANS CARPENTERS LOCAL NO 1098

PENSION PLAN AND TRUST PENSION PLAN AND TRUST

BY_______________________________ BY_________________

Chairman Chairman

AND ________ AND_____

Secretary Secretary

13
AGREEMENT OF PARTICIPATION

The undersigned qualified trust hereby subscribes to the

Agreement establishing the Baton Rouge Building and Construction

Industry Foundation dated as of ______________________________ copy

of which is attached to this form of agreement

Name of Trust

BY
EXHIBIT

INITIAL DELEGATES

Name and Address of Namess and Addresses

Founder Member of Its Delegates

MG dj

5/17/84

BATON
EXHIBIT

PARTI CIPATION AGREEMENT

FOR

CONSTRUCTION MORTGAGE LOAN

THIS PARTICIPATION AGREEMENT made and entered into this

_________ day of ___________________________ 198_ by and between

the Lender banking corporation having its principal banking

office at

and mailing address of ______________________________________________

Attention __________________________ and BATON ROUGE BUILDING AND

CONSTRUCTION INDUSTRY FOUNDATION TRUSTEE the Participant having

its principal office at _________________________________________________

Attention Administrator

WHEREAS the Lender has made valid and binding commitment to

make

Dollar construction mortgage loan the Loan to

the Borrower and

WHEREAS Lender has agreed to sell to Participant an undivided

interest in the Loan and Participant has agreed to purchase an undivided

interest in the Loan to the extent of ______________ per cent of

the Loan upon the following terms and conditions

NOW THEREFORE in consideration of these premises the mutual

promises of the parties and other good and valuable consideration the

Lender and the Participant hereby mutually covenant and agree as

follows

PARTICIPATION

1.01 Advances Lender sells to Participant and Participant

purchases from Lender participation of ______________ per cent

in the Loan including all interim advances thereunder The purchase

price of each participation in each advance is ________________ per cent

of the amount of the advance Participant is not obligated to

participate in any advance made if with the advance the unpaid

balance of the Loan would exceed the stated amount of the Loan plus

interest or if with the advance the unpaid balance of

Participants participation in the Loan would exceed onehalf 1/2 of
the stated amount of the Loan plus interest or after Lender has

knowledge of default by Borrower

1.02 Undivided Interest Participants participation and

Lenders retained participation shall each constitute at all times an

undivided interest in the proportion of the amounts of the respective

participants in the Loan including all rights and benefits of Lender

under the Loan Agreement the Loan Agreement all notes or other

instruments pertaining thereto and all collateral securing the Loan

including but not limited to all guaranties security Interests

assignments of life insurance and mortgages held by Lender

Nonrecourse Participants participation Is

without recourse against Lender

1.03 Interest The unpaid principal amount of Participants

participation shall bear interest at variable annual rate equal to the

sum of the prime rate in effect on the first day of each calendar

quarter plus _________________ per cent per annum The prime

rate shall be the minimum prime lending rate as quoted in the money

market section of The Wall Street Journal Interest shall be payable

monthly

1.04 Maturity This agreement shall terminate upon the

payment in full of the Loan unless earlier terminated under other

provisions of this agreement The term of the Loan and this agreement

may be extended or renewed upon the consent of the Lender and the

Participant Any extension or renewal of this agreement shall be upon

the terms and subject to the conditions of this agreement as amended by

any extension or renewal agreement

ADMINISTRATION

2.01 Payment by Participant Forthwith upon the execution of

this agreement Participant shall forward to Lender the full amount of

its participation hereunder Lender shall keep Participant fully

invested in an incomeproducing account and/or in riskless securities

All earnings on the monies so advanced shall be for the account of the

Participant only

2.02 Payments to Participant When Lender receives payment

to be remitted to Participant in whole or In part Lender shall deliver

to Participant the amount due from the payment Payments received by

Participant need not be endorsed on any participation certificates

though Participant may upon payment in full of Its participation with

interest mark paid and return to Lender the latest participation

certificate received by Participant from Lender
2.03 Order of Payment Whenever Participant hasT an out

standing participation in the Loan and Lender receives any payment on

the Loan Lender and Participant shall apply the payment to the

following in order

Expenses covered by section 2.06 that are

reimburseable by Borrower

Accrued unpaid interest in the proportion

of the respective amounts owing to Participant and

Lender and

Principal in the proportion of the

respective amounts owing to Participant and Lender

In all cases including the bankruptcy or insolvency of

Borrower or any marshalling of Borrowers assets and liabilities

Participants participation and Lenders retained participation shall be

on parity with neither being subordinate to the other

2.04 Mode of Payment Payments to Lender from Participant

and from Participant to Lender may be made by immediately available

funds by wire for principal or by check or wire for interest or by any

other means that the parties may later agree to use

2.05 Documents and Collections Lender shall hold all

documents pertaining to the Loan and shall make all collections

hereunder and otherwise administer the Loan in accordance with its

regularly established practices and procedures Lender will accept

repayment of advances from Borrower third parties liable theref or or

any guarantors of Borrower for proportionate repayment of Participants

participation Lender shall use its best efforts to enforce the Loan

to keep proper records of the Loan and participation and to perform

such other tasks as Lender and Participant may agree

2.06 Expenses Costs and Fees Any outofpocket expenses

court costs and attorneys fees incurred in connection with the

administration of the Loan the protection collection realization or

enforcement of the Loan or the collateral for the Loan or for the

protection preservation insurance or maintenance of any property which

is the subject matter of any such collateral shall be borne by Partici

pant and Lender in the same ratio as their respective participation in

the advances under the Loan at the time such expenses are incurred The

expenses costs and fees described in this paragraph shall not include

hire of regular or clerical employees or executives of Participant or

Lender or any ordinary overhead of either Participant or Lender The

costs expenses and fees shall include the amount of any monies paid in

satisfaction or compromise of any suit claim action or demand by any
receiver or trustee in bankruptcy of Borrower on account of any alleged

void or voidable preference or other void or voidable transfer received

or alleged to have been received from Borrower in connection with the

advances under the Loan or paid in satisfaction or compromise of any

suit claim or demand of any kind against either Lender or Participant

on account of the assignment of any receivable or other collateral as

security for advances in which Participant owns participation or the

security therefor or the payment by Borrower of any monies in connection

therewith

2.07 Examination of Books Participant may examine all of

Lenders books of account and other records pertaining to the Loan and

the related agreements and instruments at any reasonable time during

Lenders business hours

2.08 Reports Etc Lender shall provide Participant copies

of all reports financial statements and other information given to

Lender under the Loan Agreement Lender and Participant shall endeavor

to keep the other advised of all information about Borrower and the Loan

that each receives

LENDERS RIGHTS AND POWERS

3.01 Default in the Loan Lender shall advise Participant of

any defaults in the Loan of which Lender has actual knowledge

3.02 Exercise of Remedies Lender shall do the following

only with the prior written consent of Participant

Collect the Loan

Waive exercise or enforce any rights or

remedies accruing to Lender under the Loan Agreement

or any other documents executed in connection with

the Loan

Amend the Loan including releases sub

stitutions or exchanges of any collateral for or

guaranties of the Loan or

Grant indulgences to Borrower

If Lender and Participant disagree over the foregoing Lender

and Participant shall terminate this agreement under Article
EXCULPATION FROM LIABILITY AND DISCLAIMER

4.01 Exculpation from Liability Lender shall not be liable

for any error of judgment or for any action taken or omitted except for

willful misconduct Lender may consult with legal counsel independent

public accountants and other experts selected by Lender and shall not

be liable for any act or omission taken in good faith by Lender in

accordance with the advice of such counsel accountants or experts

Lender shall not have any liability to Participant for repayment of

Participants participations nor the realization or recovery of such

participations from any collateral other security or guaranties of the

Loan

4.02 Disclaimer Neither Lender nor any of its agents has

made any representation or warranty of any kind concerning the subject

matter of this agreement nor shall Lender or its agents hereafter be

deemed to have made any further or other representation or warranty

Lender makes no representations or warranties expressed or implied of

and assumes no liability to Participant for the effectiveness enforce

ability validity or execution of the Loan Agreement or any other

documents executed in connection with the Loan or the attachment or

perfection of any interest in any property securing payment of the Loan

Lender has no responsibility for the integrity or solvency of Borrower

PARTICIPANTS REPRESENTATIONS AND WARRANTIES

Participant makes the following representations and warranties upon

which Lender may rely

5.01 Investment Experience Participant has knowledge and

experience in financial and business matters and in the investing of

monies and is capable of evaluating the merits and risks of purchasing

participation and making the investment contemplated by such purchase

5.02 Review and Investigation During the course of the

transaction and prior to the sale and delivery of the participation to

Participant Participant has been afforded the opportunity to review

final copies of all documents pertaining to the Loan to ask

questions and receive answers from the Borrower concerning the terms and

conditions of the documents and to review such financial reports

and to ask questions of and receive answers from the Borrower pertaining

to Borrower and its business operations financial condition and future

prospects as Participant deemed necessary and appropriate to permit it

to make fully informed decision with respect to its participation in

the Loan Participant acknowledges that Lender has not undertaken

to ascertain the accuracy or completeness of any information furnished

to Participant relating to the business operations financial condition

or future prospects of the Borrower or made any representations

5--
concerning the accuracy or completeness of any information supplied to

Participant by or relating to the Borrower Participant is capable of

and has made Its own investigation of the Borrower in connection with

its decision to purchase the participation Participant will continue

to make Its own Independent investigations and decisions concerning its

participation

5.03 Nonreglstration Participant understands that its

participation in the Loan has not been registered under the Securities

Act of 1933 as amended by the Trust Indenture Act of 1939 as amended

or under the securities laws of any state

5.04 Purchase as Trustee Participant is purchasing Its

participation as Trustee for the benefit of the employee benefit plans

set forth on Schedule to Transaction Trust Agreement No ____________

5.05 Consultation with Legal Counsel Participant has

consulted with and been advised by its own legal counsel as to the

significance of the representations contained in this agreement

NONASSIGNABLE AND NONTR.ANSFERABLE

This agreement is neither assignable nor transferable by either

party without the consent of the other except for affiliates

subsidiaries and successors of either party

MODIFICATION AMENDMENT AND WAIVER

The provisions of this agreement may be amended modified or

temporarily waived from time to time but each amendment modification

or temporary waiver as the case may be must be approved in writing by

bot Participant and Lender

TERMINATION

8.01 Ujon Default If either party but not both defaults

in its obligations under this agreement and the default remains uncured

for ten 10 days after written notice the nondefaulting party may

terminate this agreement Upon termination the defaulting party shall

repurchase the nondefaulting partys entire participation at par plus

accrued interest and this agreement shall be cancelled

8.02 Upon Disagreement If default occurs under the Loan

and either Lender or Participant but not both does not agree to waive

the default then the one that does not agree to waive the default may

terminate this agreement upon written notice to the one that is

agreeable to waiving the default Within reasonable time after

receipt of such notice of termination the one agreeable to waiving
the default shall either purchase for itself or find another to

purchase the nonwaiving partys participation interest at par plus

accrued interest or if Lender is the one agreeable to waiving the

default promptly begin and prosecute collection of the Loan or permit

if Participant is the one agreeable to waiving the default Lender to do

so This agreement shall terminate upon the purchase of the nonwaiving

partys participation interest or the completion of collection of the

Loan as the case may be

INTERPRETATION

9.01 Captions and Headings Captions and headings are used

for convenience and reference only and shall not be used in construing

or interpreting this agreement

9.02 Law This agreement shall be governed and construed

according to the laws of Louisiana

BY___________________________________

Title ________________________

BATON ROUGE BUILDING AND

CONSTRUCTION INDUSTRY FOUNDATION

TRUSTEE

BY_________

Title

MG dj

5/23/84

BATON
EXHIBIT

BATON ROUGE BUILDING AND

CONSTRUCTION INDUSTRY FOUNDATION

CONSTRUCTION INDUSTRY INVESTMENT PLAN

Shutnaker Loop Kendrick

North Courthouse Square

1000 Jackson

Toledo Ohio 43624

800 6625056
INDEX

Page

ARTICLE DEFINITIONS

Section Union

Section Association

Section Employee Benefit Plan

Section Employee Benefit Plan Contributions

Section Plan

Section Delegate

Section ERISA

Section Foundation

Section Member

Section 10 Founder Members

Section 11 Additional Member

Section 12 Foundation Agreement

ARTICLE II PLAN OPERATION

Section Roster of Lenders

Section Receipt of Commitments

Section Transmittal of Data

Section Rules and Regulations

Section Employee Benefit Plan Account

Section Records of Investments

Section Investments

Section Principal Payments

Section Interest Payments

Section 10 Participations

Section 11 Mortgage Loan Commitments

Section 12 CoParticipations

Section 13 Limited Investment

Section 14 Participation Requirements

Section 15 Department of Labor Regulations

Section 16 Recordkeeping

Section 17 Take Out Loan Commitments

ARTICLE III SPENDTHRIFT PROVISIONS 10

ARTICLE IV EFFECTIVE DATE AND TERMINATION 11

Section Effective Date 11

Section Termination and Distribution 11

Section Alternate Distribution 11

Section Amendments 11
Page

ARTICLE CONSTRUCTION 12

Section Governing Law 12

Section Validity of Documents 12

Section Effect of Illegality 12

Section Judicial Construction 12

Section Extent of Delegate Liability 13

Section Titles 13

Section Execution 13

Section Severability 13

ii
BATON ROUGE BUILDING AND

CONSTRUCTION INDUSTRY FOUNDATION

CONSTRUCTION INDUSTRY INVESTMENT PLAN

THIS AGREEMENT made and entered Into at Baton Rouge

Louisiana by and among the Delegates appointed by the Employee Benefit

Plans who are the Founder Members of the Baton Rouge Building and

Construction Industry Foundation as those terms are hereinafter

defined

WHEREAS certain of said Employee Benefit Plans the Founder

Members have established Foundation known as the Baton Rouge

Building and Construction Industry Foundation to enable the Boards of

Trustees of said Employee Benefit Plans which become parties to the

Foundation to make legal and prudent Investments on combined and

consolidated basis but compliant in all respects with all requirements

of LMRA ERISA and the Code and

WHEREAS the Founder Members have appointed their respective

Delegates and

WHEREAS the Delegates by the terms of the Foundation

Agreement are empowered to establish Plan for the Foundation and

WHEREAS the Delegates desire to implement and effectuate the

provisions of the Foundation by setting forth the terms and provisions

of the Plan for the Foundation

NOW THEREFORE In consideration of these premises the mutual

covenants herein contained and for other good and valuable

consideration the receipt and sufficiency of which are hereby mutually

acknowledged it is agreed by and among the Delegates as follows
ARTICLE

DEFINITIONS

SECTION UNION

The term Union as used herein shall mean any labor organi

zation which is

the duly designated collective bargaining

representative of workmen engaged in the building

and construction industry in the greater Baton

Rouge Louisiana area and

cosponsor of any Employee Benefit Plan

which becomes party to the Foundation

SECTION ASSOCIATION

The term Association as used herein shall mean any associa

tion of employers which is

the representative of Employersengaged in

the building and construction industry in the

greater Baton Rouge Louisiana area who employ

workmen represented by Union and

cosponsor of any Employee Benefit Plan

which becomes party to the Foundation

SECTION EMPLOYEE BENEFIT PLAN

The term Employee Benefit Plan as used herein shall mean any

employee benefit plan as defined in Section 33 of ERISA which

is sponsored by one or more Unions and one

or more Associations

becomes party to the Foundation and

Is exempt from taxation by virtue of

Section 501a of the Code

SECTION EMPLOYEE BENEFIT PLAN CONTRIBUTIONS

The term Employee Benefit Plan Contributions as used herein

shall mean payments made to the Foundation by participating Employee
Benefit Plans in accordance with this Plan and/or the Fbundation

Agreement

SECTION PLAN

The term Plan as used herein shall mean the program methods

and procedures for the investment of monies from the Employee Benefit

Plans by the Delegates as set forth herein

SECTION DELEGATE

The term Delegate as used herein shall mean delegate to

the Foundation appointed pursuant to Article II Section 2.07 or

Article II Section 2.08 of the Foundation Agreement

SECTION ERISA

The term ERISA as used herein shall mean the Employee

Retirement Income Security Act of 1974 as amended and regulations of

the Department of the Treasury and the Department of Labor promulgated

thereunder

SECTION FOUNDATION

The term Foundation as used herein shall mean the Baton

Rouge Building and Construction Industry Foundation as originally

adopted and as it may be subsequently amended

SECTION MEMBER

The term Member as used herein shall mean both the Founder

Members who are the original signatories to the Foundation Agreement and

such Additional Members as may hereafter and from time to time be

admitted pursuant to the provisions of Article II Section 2.04 of the

Foundation Agreement The term shall not include any Founder Member or

Additional Member whose membership shall have terminated prior to the

pertinent determination of Member status

SECTION 10 FOUNDER MEMBERS

The term Founder Members as used herein shall mean those

Employee Benefit Plans which are signatories to the Foundation

Agreement

SECTION 11 ADDITIONAL MEMBER

The term Additional Member as used herein shall mean an

Employee Benefit Plan which is not Founder Member and which is
admitted to participation in the Foundation pursuant to Article II

Section 2.04 of the Foundation Agreement

SECTION 12 FOUNDATION AGREEMENT

The term Foundation Agreement means the document estab

lishing the Baton Rouge Building and Construction Industry Foundation
ARTICLE II

PLAN OPERATION

SECTION ROSTER OF LENDERS

The Delegates shall establish contact with and shall maintain

roster of all banks savings and loan associations and mortgage

brokers involved in generating bidding approving and funding of

construction loans to general contractors in the geographic juris

dictions set forth in the collective bargaining agreement between the

Union and the Association

SECTION RECEIPT OF CONMITMENTS

The Delegates shall solicit receive consider and transmit

all binding enforceable commitments made by all cooperating banks

savings and loan associations and mortgage brokers whether or not they

are for loans to local or nonlocal developers for local or nonlocal

construction projects or for unionbuilt or nonunionbuilt construction

projects which

shall comply with the terms conditions

and provisions of Prohibited Transaction Exemption

761 and

which comply with the guidelines adopted

by the Delegates and which are attached hereto and

incorporated herein

SECTION TRANSMITTAL OF DATA

All data obtained by the Delegates from banks savings and

loan associations and mortgage brokers as hereinbefore described shall

be promptly transmitted to the Boards of Trustees of the Employee

Benefit Plans participating herein at such time and in such manner as

shall be determined by the Delegates with the approval of the parti

cipating Employee Benefit Plans

SECTION RULES AND REGULATIONS

The Delegates shall promulgate rules and regulations

applicable to those Employee Benefit Plans which desire to participate

in any of the proffered construction mortgage loan participations

setting forth the manner in which the Employee Benefit Plans desiring to

participate therein shall notify the Delegates of such fact of the

amount of such participation and such other information as the
Delegates deem appropriate In no event shall the Delegates make any

investment decision for or on behalf of any participating Employee

Benefit Plan

SECTION EMPLOYEE BENEFIT PLAN ACCOUNT

If an Employee Benefit Plan decides to participate in any one

or more of the offered construction mortgage participations the Board

of Trustees of the Employee Benefit Plan shall forward to the Delegates

the dollar amount of its participation therein The contributions from

the Employee Benefit Plans participating in each transaction shall be

promptly transmitted to the lead lender

SECTION RECORDS OF INVESTMENTS

The Delegates shall keep records as to each investment here

under including the names of all participating Employee Benefit Plans

the nature and extent of the participation copies of all loan

documents records of periodic payments of principal and interest on the

investment and such other information as the Delegates with the advice

of theIr professional advisors shall determine Copies of this infor

mation shall be made available on regular basis to all Employee

Benefit Plans participating in each said investment

SECTION INVESTMENTS

All investments shall be registered in the name of the

Foundation Payments to fund the investments shall be made by the

Delegates Repayments of principal and interest shall be made to and in

the name of the Delegates

SECTION PRINCIPAL PAYMENTS

The Delegates shall on regular basis remit to all parti

cipating Employee Benefit Plans their pro rata shares of principal

repayment and income earned on their respective participations in each

investment

SECTION INTEREST PAYMENTS

The Delegates shall receive and record all payments of

interest on interim holding account investments The income from such

investments shall be used first to pay all expenses attendant to the

operation of the Foundation and shall thereafter be distributed pro rata

to participating Employee Benefit Plans To the extent expenses

attributable to the operation of the Foundation remain after the

application of the preceding sentence remittances of the pro rata
shares shall be made to the participating Employee Benefit Plans net of

expenses on pro rata basis

SECTION 10 PARTICIPATIONS

All participations purchased by the Members and taken by the

Foundation shall be coparticipations with the originating bank or

savings and loan association and shall not be the purchase of an

interest in any existing investment from the bank or savings and loan

The aggregate interest of all Members in single participa

tion shall not exceed fifty per cent 50Z of the total loan commitment

In all participations the Members shall receive from the lead

lender as part of their participation

interest at or above the prevailing market

rate of interest for comparable commercial financing

transactions and

their pro rata share of the financing

points to the extent the points represent return on

the loan and not compensation and/or reimbursement

to the originating bank savings and loan asso

ciation or mortgage broker for the actual expenses

incurred and/or services rendered in servicing the

construction mortgage loan

SECTION 11 MORTGAGE LOAN COMMITMENTS

The Delegates shall not consider any construction mortgage

loan commitments for purchase of participation through the Foundation

unless the bank savings and loan association or mortgage broker

originating the commitment has valid legal binding and enforceable

commitment to the loan applicant and the borrower for the construction

mortgage loan without regard to participation by any Employee Benefit

Plan participating in the Foundation

SECTION 12 COPARTICIPATIONS

All participations purchased by an Employee Benefit Plan shall

be coparticipations with the originating bank or savings and loan

association in the commitments and not the purchase of an existing

investment from the bank or savings and loan association

SECTION 13 LIMITED INVESTMENT

In no event shall any Employee Benefit Plan invest
more than ten per cent 10% of the assets

of said Employee Benefit Plan at cost in any single

participation investment nor

more than thirtythree and onethird per

cent 33 1/3% of the assets of said Employee

Benefit Plan at cost in all of the participation

investments obtained through the Foundation

The Foundation shall not participate in any participating construction

mortgage loan in which the originating bank or savings and loan

association has less than fifty per cent 50% interest in the loan

SECTION 14 PARTICIPATION REQUIREMENTS

In any participation purchase by the Delegates through the

Foundation with the originating bank or savings and loan association an

Employee Benefit Plan shall require that

the loan is made at or above the

prevailing market rate of interest for comparable

commercial financing transactions and

said Employee Benefit Plan receives its

pro rata share of the financing points to the extent

the points represent return on the loan and not

compensation and/or reimbursement to the bank or

savings and loan association for actual expenses

incurred and/or services rendered in servicing the

construction mortgage loan

SECTION 15 DEPARTMENT OF LABOR REGULATIONS

The Delegates do hereby adopt and expressly make part of

this Plan Department of Labor Regulation Section 2550.408b2e and the

examples of Regulation Section 2550.408b2f Without limiting the

generality of the foregoing any Delegate who has an Interest in the

employer entity which is involved in construction project to be

financed by commitment the participation in which is being considered

by the Foundation shall

abstain from voting on the participation

determination

absent himself from the Delegates meeting

room when the issue of the purchase of participa

tion in said commitment Is under discussion and

consideration and
represent on the record that he has not

discussed the participation with any other Delegate

nor has he attempted to exert any influence upon any

Delegate with regard to the issue

SECTION 16 R.ECORDKEEPING

The Foundation shall maintain or cause to be maintained for

period of six years from the date of each loan participation such

records as are necessary to enable the Department of Labor the Internal

Revenue Service the Plans participants and beneficiaries or any

employee organization whose members are covered by the Plan to determine

whether all conditions of the Department of Labors prohibited

transaction exemption have been met

SECTION 17 TAKE OUT LOAN COMMITI4ENTS

Before the Loan Is made the Foundation shall receive from the

lending institution written commitment for permanent financing from

person other than participating Plan or the Foundation to enable full

repayment of the participating loan upon completion of construction
ARTICLE III

SPENDTHRIFT PROVISIONS

No part of any benefits to be given hereunder or payments of

any benefits shall be assigned alienated or in any manner encumbered

Tf by reason of any such act by operation of law by the happening of

any event or for any other reason except by an act authorized by the

Delegates any such benefit payment or account shall cease to be

enjoyed by any employee or beneficiary of any Employee Benefit Plan

participating herein either directly or indirectly or if by reason of

an attempt of such employee or beneficiary to alienate charge or

encumber the same or by reason of the bankruptcy or insolvency of such

employee or his beneficiary or because of any attachment garnishment

execution or other proceedings or any order finding or judgment of any

court of law or equity the same except for this provision would vest in

and be enjoyed by some other person firm corporation or otherwise than

as provided for herein then all of the rights and benefits provided for

herein for any such employee or beneficiary shall cease and desist and

thereafter any such benefit or payment on account of any such benefit

which would have been enjoyed by such employee or beneficiary except

for this provision shall be held and disposed of by the Delegates may

cause to be paid or expended for the support care and maintenance of

said employee or beneficiary out of the monies due said employee or

beneficiary such sums as in their discretion shall be deemed just an4

proper which do not exceed the amount withheld for the benefit of said

employee or beneficiary

10
ARTICLE IV

EFFECTIVE DATE AND TERMINATION

SECTION EFFECTIVE DATE

The Plan created hereby shall become effective on the 1st day

of July 1984

SECTION TERMINATION AND DISTRIBUTION

The Plan may be terminated at any time by agreement of

majority of the Delegates then serving In the event of such

termination no further investments shall be made by the Delegates in

construction loans all future remittances to the Delegates shall be

placed in an incomeproducing account in the name of the Delegates and

expenses applicable to the operation of the Plan and the Foundation

shall be paid as herein provided At such time as the Delegates

determine the Delegates shall distribute on pro rata basis the

proceeds of such loans plus any additional income from the

interestbearing account less any applicable expenses to the Employee

Benefit Plans participating at the time of termination Notwithstanding

the termination of the Plan winding up period shall follow such

termination to enable the Delegates to conclude the operations of the

Plan including the collection of principal and interest payments and

the payment of expenses

SECTION ALTERNATE DISTRIBUTION

In lieu of the distribution set forth in Section hereof

upon the agreement of majority of the Delegates then serving the

Delegates may after all obligations of the Foundation have been set

aside or actuarially secured turn over any surplus monies and property

In the Foundation to any future foundation that may be created through

the collective bargaining process

SECTION AMENDMENTS

This Plan may be amended at any time and from time to time by

majority vote of the Delegates

11
ARTICLE

CONSTRUCTION

SECTION GOVERNING LAW

This Plan is created and accepted in the State of Louisiana

and all questions pertaining to the validity or construction hereof and

of the acts and transactions of the parties hereto shall be determined

in accordance with the laws of the State of Louisiana except as to

matters governed by federal law

SECTION VALIDITY OF DOCUMENTS

Anything herein contained to the contrary notwithstanding the

Delegates shall not have any responsibility for the validity of this

Plan or for the form genuineness validity or sufficiency or effect of

any insurance contract at any time included in the Foundation or for the

act of any person or persons which may render any such contract null and

void or for the failure of any insurance company to pay the proceeds

and avails and benefits of any such contract as and when the same shall

become due and payable or for any delay occasioned by reason of any

restriction or provision contained in any such contract or if for any

reason whatsoever any contract shall lapse or otherwiàe become

uncollectible

SECTION EFFECT OF ILLEGALITY

Should any provision of this Plan be held to be unlawful as to

any person or instance such provision or fact shall not adversely

affect the other provisions herein contained or application of said

provisions to any other person or instance unless such legality shall

make impossible the function of the Foundation or the Plan No Delegate

shall be held liable for any act done or performed in pursuance of any

provisions herein contained regardless of the fact that such provisions

may be held unlawful prior to the time when such provisions shall in

fact be held to be unlawful by court of competent jurisdiction

SECTION JUDICIAL CONSTRUCTION

The Delegates may take any legal action or proceeding they

deem necessary to settle their accounts or to obtain judicial deter

mination or declaratory judgment as to any question of construction of

the Plan or for instruction as to any action thereunder Any such

determination shall be binding upon all parties to or claiming under the

Foundation Agreement and/or the Plan

12
SECTION EXTENT OF DELECATE LIABILITY

To the fullest extent permitted by law the costs and expenses

of any action suit or proceeding brought by or against the Delegates or

any of them including counsel fees court costs and also including the

payment of any judgment and/or cost of settlement of any suit or

proceeding which the Delegates may approve upon advice of their counsel

that such judgment or settlement was in payment of an obligation owed or

reasonably deemed to be owed by the Foundation shall be paid from the

Foundation except in relation to matters as to which it shall be

adjudged in such action suit or proceeding that such Delegate was

acting in bad faith or was negligent in the performance of his duties

hereunder

SECTION TITLES

Titles of articles and sections are for general information

only and this Plan is not to be construed by reference thereto

SECTION EXECUTION

This Plan may be executed in any number of counterparts each

of which shall have the force of an original and said counterparts

shall constitute but one and the same instrument

SECTION SEVERABILITY

In the event that any article of this instrument or any part

thereof is determined to be illegal or invalid such illegality or

invalidity shall not affect the remaining provisions of this instrument

as presently written or subsequently amended unless such illegality or

invalidity prevents the Delegates from accomplishing the purpose of this

Plan In such event the parties hereto individually and collectively

agree to commence negotiations aimed at correcting any such defect

13
IN WITNESS WHEREOF the Employer Delegates and the Union

Delegates have executed this Plan on this __________ day of

____________________ 1984 to be effective as of the date set forth in

Article IV Section

ENPLOYER DELEGATES UNION DELEGATES

MG dj

5/18/84

BATON2

14
GUIDELINES FOR CONSTRUCTION INDUSTRY

INVESTMENTS BY ThE BATON ROUGE

BUILDING AND CONSTRUCTION INDUSTRY FOUNDATION

The following guidelines are hereby adopted by the Delegates

of the Baton Rouge Building and Construction Industry Foundation and are

incorporated into and made part of the Baton Rouge Building and

Construction Industry Foundation Construction Industry Investment Plan

The lending institutions will initiate process and

approve all applications for loans The leaders of the Baton Rouge

Building and Construction Trades Industry will encourage owners

developers and builders to apply to those lending institutions

participating with the Foundation in its construction Industry invest

ment program However the generation and approval of all loans rest

solely and exclusively with the lending institutions

The first contact by the lending institution with the

Foundation will only be after the lending institution has made valid

binding and enforceable construction mortgage loan commitment

On periodic basis chronology to be worked out with

each lending institution to its satisfaction the lending Institution

will advise the administrator of the Foundation of all construction

mortgage loan applications it has approved since the last communication

and shall transmit to the Foundations administrator the loan package

showing the borrower amount of the loan rate and terms of the loan and

security contractor and subcontractors description of project etc

The administrator of the Foundation will immediately copy

and forward all information received to all Plans

Within an acceptable time frame the Trustees of each

Plan shall consider each loan commitment and make two determina

tions

shall the Plan participate in each loan and

if so to what financial extent

Each Plan shall then advise the administrator of the

Foundation of its decisions on each loan commitment

The administrator of the Foundation shall accumulate the

responses from each Plan on each loan coimnitment and shall notify the

lending institution
if there will be participation in each loan and

if so in what aggregate amount

The Foundation shall act as trustee under Transaction

Trust Agreement for each participation The lending institution will

.deal only with the Foundation as trustee not with the individual Plans

or Trustees

The Foundation as trustee will execute Participation

Agreement with the lending institution with the Foundation as the

participant and the lending institution as lead lender

10 Within ten 10 days of the execution of the Transaction

Trust and the Participation Agreement each participating Plan will fund

one hundred per cent 100% of its participation to the lending

institution The lending institution shall keep all of the partici

pants funding invested for the participants account until drawn down

11 The lending institution as lead lender will fully service

the loan without involvement by the Foundation or the participating

Plan

12 The transactions shall be documeated and handled as

participating construction mortgage loans in accordance with -the rules

practices and procedures of the lending institution

13 The Trustees of each Plan shall receive and consider all

loan commitments from all cooperating lending institutions for which

legally binding and enforceable commitment has been made whether the

commitments are for

local developers or nonlocal developers

local construction projects or nonlocal construction

projects and

Cc unionbuilt construction projects or nonunionbuilt

construction projects

Provided however that the cooperating lending institutions shall not

be required to submit to the Foundation all commitments for construction

mortgage loans unless

its customerborrower shall have consented to the

invitation for participation by the Foundation which partici

pation by the Foundation shall be affirmatively recommended by

the lending institution
the commitment shall be in the amount of Two Hundred

Thousand Dollars $200000.00 or more and

the loan is generated by branch or affiliate of

the lending institution and/or is for construction to be

performed in the geographic jurisdiction of the Foundation

14 All participations purchased by the Plans shall be

coparticipations with the originating lending institutions in the

commitments and not the purchase of an existing investment from the

institutions

15 In no event shall any Plan invest

more than ten per cent 10% of the assets of the

Plan at cost in any single participation investment nor

more than thirtythree and onethird per cent

33 1/3% of the assets of the Plan at cost In all of the

participation investments obtained through the Foundation

16 In no event shall the aggregate participation through the

Foundation be more than fifty per cent 50% of the total loan

17 In any participation purchase by Plan through the

Foundation with the originating lending institution the Plan shall

require that

the loan is made at or above the prevailing market

rate of interest for comparable commercial financing trans

actions and

the Plan receive its pro rata share of the financing

points to the extent the points represent return on the loan

and not compensation and/or reimbursement to the lending

institution for actual expenses incurred and/or services

rendered In servicing the construction mortgage loan

18 The Trustees of the Plans shall adopt and expressly make

part of their Plan documents Department of Labor Regulation Section

2550.408b2e and the examples of Regulation Section 2550.408b2f

Without limiting the generality of the foregoing any Trustee of any

Plan who has an interest in the employer entity which is involved in

construction project to be financed by commitment the participation

in which is being considered by the Plan shall

abstain from voting on the participation determi

nation
absent himself from the Trustees meeting room when

the issue of the purchase of participation in said commit

merit is under discussion and consideration and

represent on the record that he has not discussed

the participation with any other Trustee nor has he attempted

to exert any influence upon any Trustee with regard to the

issue

19 In considering and acting upon the purchase of partici

pation in any commitment the Trustees of each Plan shall act in strict

compliance with ERISA Section 404a

20 Before the loan is made the Foundation shall receive

from the lending institution written commitment for permanent

financing from person other than participating Plan or the

Foundation to enable full repayment of the participating loan upon

completion of construction

21 The Foundation shall maintain or cause to be maintained

for period of six years from the date of each loan participation

such records as are necessary to enable the Department of Labor the

Internal Revenue Service the Plans participants and beneficiaries any

employer of Plan participants and beneficiaries- or any employee

organization whose members are covered by the Plan to determine whether

all conditions of the Department of Labors prohibited transaction

exemption have been met

MG dj

5/31/84

BATON2
EXHIBIT

TRANSACTION TRUST AGREEMENT

BATON ROUGE BUILDING AND

CONSTRUCTION INDUSTRY FOUNDATION

AND

TRUST NO ____________________

Shuinaker Loop Kendrick

North Courthouse Square

1000 Jackson

Toledo Ohio 43624

800 6625056
TABLE OF CONTENTS

Page

ARTICLE DEFINITIONS

Section 1.01 Agreement

Section 1.02 Beneficiary

Section 1.03 Code

Section 1.04 ERISA

Section 1.05 Foundation

Section 1.06 Interest

Section 1.07 Transaction

Section 1.08 Trust

Section 1.09 Trust Counsel

Section 1.10 Trustee

ARTICLE II CREATION TRUSTEE BENEFICIAL INTERESTS

Section 2.01 Creation of Trust

Section 2.02 Beneficial Interests

Section 2.03 Principal Office

Section 2.04 Fiscal Year and Accounting Method

Section 2.05 Contributions

Section 2.06 Failure to Make Contributions

ARTICLE III PURPOSES OF TRUST

ARTICLE IV DUTIES RIGHTS AND POWERS OF TRUSTEE

Section 4.01 Duties of the Trustee

Section 4.02 Powers of the Trustee

Section 4.03 General Duties Rights Privileges and

Liabilities of the Trustee

Section 4.04 Limitation on Powers 11

Section 4.05 Compensation 11

Section 4.06 Custodian of Trust Accounts 11

ARTICLE SUCCESSOR TRUSTEES 12

Section 5.01 Resignation of Trustee 12

Section 5.02 Removal of Trustee 12

Section 5.03 Appointment of Successor Trustee 12
Page

ARTICLE VI TRANSFER OF ASSETS ACQUISITION OF

ADDITIONAL INTERESTS 13

Prohibition of Transfers of Interests

Loss of Exempt and Qualified Status of

Beneficiary

Redemption and Liquidation

Acquisition of Additional Interests

ARTICLE VII TAX QUALIFICATION AND EXEMPTION 16

Section 7.01 Maintenance of Status 16

ARTICLE VIII TERMINATION 17

ARTICLE IX GENERAL PROVISIONS 19

Section 9.01 19

Section 9.02 19

Section 9.03 19

Section 9.04 19

Section 9.05 19

Section 9.06 19

Section 9.07 20

Section 9.08 20

Section 9.09 20

Section 9.10 20

Section 9.11 20

Section 9.12 20

Section 9.13 20

Section 6.01

Section 6.02

Section 6.03

Section 6.04

13

13

13

14

Governing Law

Notices

Amendments

Headings

Severability

Expenses of Disputes

No Third Party Rights

Counterparts Effectiveness

Loss of Qualified Status of Trust

Disputes Arbitration

Other Documents

Partition and Accounting

No Diversion

ii
TRANSACTION TRUST AGREEMENT

THIS TRANSACTION TRUST AGREEMENT the Agreement is entered

into this _________ day of ________________________ 198_ by and among

BATON ROUGE BUILDING AND CONSTRUCTION INDUSTRY FOUNDATION the

1Trustee and those Members of the Foundation participating in this

Trust the Beneficiaries which are set forth in Exhibit hereto

WHEREAS certain investment proposal which is summarized

for purposes of identification only on Exhibit attached hereto has

been reviewed and approved by the Beneficiaries and each desires to

establish trust the Trust pursuant to which they will collectively

provide funds to finance the proposed transaction the Transaction

and

WHEREAS the Beneficiaries desire to appoint the Trustee as

the trustee of the Trust to serve upon the terms and conditions set

forth herein and the Trustee is willing to serve in such capacity and

upon such terms and conditions and

WHEREAS it is intended that the Trustee will finance in

whole or in part the Transaction and that until the funding of the

Transaction the funds contributed to this Trust by the Beneficiaries

may be invested by the Lead Lender upon the terms set forth in the

Participation Agreement with it and

WHEREAS each of the Beneficiaries is trust which is exempt

from federal and state income taxation under the terms of the Internal

Revenue Code the Code as hereinafter defined and applicable state

income tax statutes and Is qualified trust as that term is defined

in the Code and

WHEREAS It Is intended that the Trust itself shall be

similarly exempt from federal income taxation and that the Trustee and

the Beneficiaries shall cooperate In taking such actions as may be

necessary or desirable to assure the continuance of that exempt status

and

WHEREAS each of the Beneficiaries desires to make contribu

tions to the Trust to best utilize its assets to the benefit of

participants and investments
NOW THEREFORE in consideration of the foregoing and of the

mutual promises set forth herein the parties hereto agree as follows
ARTICLE

DEFINITIONS

The following terms and phrases shall for purposes of this

Agreement unless the context clearly indicates to the contrary have

the meanings set forth herein

Section 1.01 Agreement The term Agreement shall mean

this Agreement and any amendments addenda supplements exhibits or

modifications hereto The terms hereof hereunder herewith and

hereto shall each refer to this Agreement

Section 1.02 Beneficiary The term Beneficiary shall mean

any trust forming part of any employee benefit plan that is and

continues to be exempt from federal Income taxation under the Code and

that is and continues to constitute qualified trust as that term Is

defined under the Code and that shall be party to this Agreement

Section 1.03 Code The term Code shall mean the Internal

Revenue Code of 1954 as amended from time to time or any successor

statute or statutes

Section 1.04 ERISA The term ERISA shall mean the

Employee Retirement Income Security Act of 1974 and any amendments

thereto and regulations promulgated thereunder

Section 1.05 Foundation The term Foundation shall mean

the entity formed pursuant to that certain agreement establishing the

Baton Rouge Building and Construction Industry Foundation

Section 1.06 Interest The term Interest shall mean the

beneficial interest owned by each Beneficiary under the Trust

Section 1.07 Lead Lender The term Lead Lender shall mean

the bank savings and loan association or other financial organization

with which the Trustee has entered into Participation Agreement

setting forth the respective interests of the Lead Lender and the

Trustee In the Transaction and the duties of the Lead Lender including

but not limited to the interim investment of the funding and the

servicIng of the Transaction

Section 1.08 Transaction The term Transaction shall mean

that certain transaction Identified in Exhibit attached hereto

Section 1.09 Trust The term Trust shall mean the trust

created hereunder
Section 1.10 Trust Counsel The term Trust Counsel shall

mean Shumaker Loop Kendrick or any successor legal counsel to the

Trust

Section 1.11 Trustee The term Trustee shall mean the

Foundation or any successor trustee or trustees as provided in Article

of this Agreement
ARTICLE II

CREATION TRUSTEE BENEFICIAL INTEREST

Section 2.01 Creation of Trust The Beneficiaries hereby

establish this Trust and the Trustee hereby accepts such Trust on the

terms and conditions set forth in this Agreement The name of this

Trust shall be Baton Rouge Building and Construction Industry Foundation

Trust No ______ The corpus of the Trust shall consist of such

property as shall from time to time be delivered to the Trustee in trust

under this Agreement which shall be invested by the Trustee with the

Lead Lender in the Transaction described in Exhibit

Section 2.02 Beneficial Interests The Beneficiaries of the

Trust shall be those trusts named on Exhibit attached hereto and

their respective Interests shall be in the amounts and the proportions

set forth on Exhibit hereto Each Beneficiary hereby represents to

the other Beneficiaries and to the Trustee that such Beneficiary has its

principal office in the State of Louisiana and is acquiring its Interest

in the Trust for its own account for investment and not with view to

or for resale in connection with any distribution of such Interest

Section 2.03 Principal Office The Trust shall have its

principal office in the East Baton Rouge Parish State of Louisiana

Section 2.04 Fiscal Year and Accounting Method The fiscal

year of the Trust shall end on December 31 of each year The books and

records of the Trust shall be maintained on an accrual basis provided

however that the Trustee may upon the recommendation of the

independent certified public accountant retained by the Trust change or

modify the accounting basis on which the books and records of the Trust

are kept in whole or in part

Section 2.05 Contributions In the event the Transaction

consists of construction loan or other immediate investment require

ment each Beneficiary shall concurrently with its execution of this

Agreement provide to the Trustee an amount of cash or its equivalent

acceptable to the Trustee equal to its total contribution as set forth

beside its name on Exhibit attached hereto

Section 2.06 Failure to Make Contributions In the event

for any reason any Beneficiary the Defaulting Beneficiary shall

fail to make any payment required to be made by it in accordance with

the provisions of this Trust Agreement ten 10 calendar days after

written notice from the Trustee to the Defaulting Beneficiary and if

such default then continues the Trustee shall offer Interests corres

ponding to theDefaulting Beneficiarys unfunded portion the Unfunded
Portion to the remaining Beneficiaries in the same ratio that the

amount of the original subscription of each of such remaining

Beneficiaries bears to the total original subscription of such remaining

Beneficiaries To the extent that any part of the Unfunded Portion then

remains unsubscribed the remaining Beneficiaries shall then be given an

opportunity by the Trustee to subscribe on the same basis to such

remaining unsubacribed portion of the Unfunded Portion If any portion

of the Transaction remains unsubscribed by the Beneficiaries the Lead

Lender shall accept and fund the unsubscribed interest
ARTICLE III

PURPOSES OF TRUST

The primary purposes of the Trust are to provide an entity

through which one or more commitments may be issued to cover the

Transaction the Transaction may be funded and the Benefi

ciaries may diversify their portfolio of investments Until the time

the Transaction is funded by the Lead Lender and subject to Section

4.02c below the duty of the Trustee shall be to forward the contribu

tions by the Beneficiaries to the Lead Lender which shall invest the

amounts contributed by the Beneficiaries in the types of income

producing investments specified on Exhibit attached hereto with all

income from such investments to be distributed to the Beneficiaries

entitled thereto on the basis of the respective amounts of their

contributions and the dates on which such contributions were made
ARTICLE IV

DUTIES RIGHTS AND POWERS OF TRUSTEE

Section 4.01 Duties of the Trustee Subject to the provi

sions of Section 4.02e below the Trustee shall have the following

duties

Reasonably and promptly after the establishment of

the Trust to forward the amount of the funding by the Bene

ficiaries to the Lead Lender in the transaction to invest the

funds contributed by the Beneficiaries subject to the

establishment of any reserve pursuant to Section 4.02c

below in the types of incomeproducing investments specified

on Exhibit attached hereto consistent with ERISA objectives

until the Lead Lender completes the funding of the Transaction

which is the subject of this Trust

Reasonably and promptly after the establishment of

the Trust to execute and deliver one or more commitments in

the name of the Trust and on its behalf in the form proposed

and approved by Trust Counsel pursuant to which the Trust

shall become committed to fund the Transaction

Reasonably and promptly to distribute to the Bene

ficiaries entitled thereto in accordance with Article II

hereof all interim income received from the investments

referred to in Section 4.01a above subject to the estab

lishment of any reserves pursuant to Section 4.02c below

During the period of the commitment to execute such

documentation and take such actions as shall be directed by

Trust Counsel acting within its field of responsibility in

order to satisfy the Trusts obligation under the commitment

To reasonably and promptly distribute all net cash

flow generated by the Transaction to the Beneficiaries in

accordance with their Interests subject to the establishment

of any reserves pursuant to Section 4.02c below and subject

to the investment until distributed of such net cash flow in

any of the investments permitted in Exhibit or those set

forth in Section 4.02c below

To provide the Beneficiaries the following regular

reports as well as such additional reports and information as

may reasonably be requested by the Beneficiaries or by Trust

Counsel
Within one hundred twenty 120 days after

the end of each fiscal year of the Trust report

containing balance sheet of the Trust as of the

end of such fiscal year statement of income and

expenses and statement of source and application

of funds for such fiscal year which balance sheet

and statements shall be audited and reported upon by

the independent certified public accountants

retained by the Trust Such reports shall specify

those expenses reimbursed to the Trustee

Within thirty 30 days after the end of

each fiscal quarter including the fourth fiscal

quarter of each fiscal year of the Trust an

unaudited quarterly financial report consisting of

at least balance sheet for the Trust as of the end

of such quarter statement of income and expenses

and statement of source and application of funds

for such quarter

Such other periodic reports and informa

tion as any of the Beneficiaries or Trust Counsel

may request in order to comply with the requirements

of ERISA or other applicable federal or state laws

or the regulations of the Internal Revenue Service

the Department of Labor or any other federal state

or local government agency having jurisdiction

Section 4.02 Powers of the Trustee The Trustee shall have

and may exercise In furtherance of the purposes of the Trust the

following discretionary powers with respect to any and all property

real or personal forming part of the Trust or at any time held by the

Trust as well as any and all other powers conferred by law and by this

Agreement

To incur reasonable expenses fees and costs on

behalf of the Trust

To pay the reasonable expenses fees and costs of

the Trust

To establish reasonable reserves with respect to the

anticipated liabilities expenses fees and costs of the

Trust and to invest and reinvest Trust assets held as

reserves either as permitted In Exhibit attached hereto or

in certificates of deposit bankers acceptances United

States government securities insured savings accounts and

money market mutual funds or to hold any part of the Trust
funds in cash or uninvested for any period during which the

Trustee deems reasonable prudent and in the best interests of

the Trust and the Beneficiaries

To employ agents brokerdealers attorneys

accountants and bookkeepers and to pay their reasonable fees

as expenses of the Trust

To consult with Trust Counsel regarding the

Trustees duties and responsibilities or actions which may be

contemplated

To appear in prosecute or defend any action in

connection with the activities of the Trust

To deduct from and charge against the Trust any

taxes paid by the Trustee which may be imposed on the Trust or

any property owned by the Trust or which the Trustee may be

required to pay with respect to the interest of any person

therein

Notwithstanding any of the foregoing subparagraphs through

the Trustee shall not incur any expense or pay any amount on behalf

of the Trust in excess of Two Thousand Five Hundred Dollars $2500.00

without the prior written consent of the Beneficiaries holding

majority of the Interests in the Trust

Section 4.03 General Duties Rights Privileges and

Liabilities of the Trustee In addition to and notwithstanding its

duties rights privileges and liabilities set forth elsewhere herein

the Trustee shall have the following duties rights and privileges and

shall be subject to the following liabilities

Subject to Section 4.02e above the Trustee shall

undertake such actions as it may deem necessary at any and all

times to protect the Trust and the rights and interests of the

Beneficiaries pursuant to the terms of this Agreement

Subject to the provisions of ERISA the Trustee

shall not be responsible for or in respect of the recitals

herein or the validity or sufficiency of this Agreement and

the Trustee shall in no event assume or incur any liability

duty or obligation to any Beneficiary or to the beneficiaries

of any Beneficiary other than as expressly provided for

herein and specifically for the decisions of the

Beneficiaries to enter into the Transaction

10
Should the Trustee with the proper consent or

direction of majority of the Beneficiaries appear in

prosecute or defend any action in connection with the

activities of the Trust any cost to the Trustee from such

conduct shall constitute an expense of the Trust reimbursable

from the assets of the Trust provided that such action is not

the result of any conduct or inaction of the Trustee which is

finally adjudged to be breach of any of its duties

Subject to the provisions of ERISA the Trustee

shall have no liability for the independent acts or omissions

of the Beneficiaries or Trust Counsel

Subject to the provisions of ERISA the Trustee

shall not be liable or responsible for the default or

misconduct of any independent advisor agent attorney

accountant or bookkeeper other than an employee of the

Trustee of the Trust if such independent advisor agent

attorney accountant or bookkeeper shall have been selected

and retained with reasonable care unless the Trustee

knowingly participates in such default or misconduct and fails

to take reasonable remedial action or through negligence in

the performance of its own specific responsibilities hereunder

has enabled such default or misconduct to occur

Except as may be imposed directly upon the Trustee

under ERISA the Code or any comparable provision of the law

the Trustee shall not be liable for any tax or other govern

mental charge imposed upon or in respect of the Trust or upon

it as Trustee hereunder which may be required under any

present or future law of the United States of America any

state of the United States or of any other taxing authority

having jurisdiction For all such taxes and charges and for

any expense including attorneys fees which the Trustee may

sustain or incur with respect to such tax or charge the

Trustee shall be reimbursed from the Trust

The duties responsibilities liabilities and prohi

bitions of the Trustee under this Agreement shall be

determined solely by the express provisions of this Agreement

and no further duties responsibilities liabilities or pro

hibitions shall be Implied or Imposed except that the Trustee

shall comply with all applicable federal and state laws and

regulations relating to trustees or fiduciaries The Trustee

shall Incur no liability in acting upon any papers documents

data or information believed by It to be genuine and accurate

and to have been made executed delivered or assembled by the

proper party or parties The Trustee may delegate any of its

11
powers or duties from time to time to any of its employees or

agents

Section 4.04 Limitations on Powers Notwithstanding any

other provisions in this Agreement the Trustee shall not

Leverage mortgage or hypothecate Trust assets or

otherwise borrow money

Except as specifically permitted by this Agreement

invest or lend any Trust assets to any person firm or cor

poration for any purpose whatsoever

Cc Accept any contribution or subscription from any

person other than Beneficiary

Section 4.05 Compensation The Trustee shall receive no

compensation for its services pursuant to this Agreement

Section 4.06 Custodian of Trust Accounts Subject to the

investment of Trust funds in the investments permitted in Exhibit and

those set forth in Section 4.02c above the Trust shall place and

maintain all of its cash and securities and may place and maintain its

instruments evidencing the Transaction in the custody of one or more

banks or savings and loan institutions maintaining an office in East

Baton Rouge Parish Louisiana to be selected by the Trustee to act as

custodian or custodians Such funds and accounts shall be held in the

name of the Trust and separate from other funds and accounts of such

banks or of their other customers and shall not be commingled with other

funds of the banks or of their other customers

12
ARTICLE

SUCCESSOR TRUSTEE

Section 5.01 Resignation of Trustee The Trustee may resign

on at least sixty 60 days prior written notice to the Trust Counsel

and each Beneficiary Such resignation shall not terminate the Trust

Section 5.02 Removal of Trustee At any time the Benef

ciarles by unanimous vote or written consent may remove the Trustee

upon at least thirty 30 days prior written notice to the Trustee

Such removal shall not terminate the Trust

Section 5.03 4ppointment of Successor Trustee In the event

notice of resignation or notice of removal has been given pursuant to

Section 5.01 or 5.02 above successor Trustee or two or more

successor cotrustees may be designated by majority of the Bene

ficiaries Such successor Trustee shall by execution of this Agreement

agree to act as Trustee of the Trust and to be subject to the terms and

provisions of this Agreement commencing as of the date of such

execution The resigning or removed Trustee shall promptly after

notice from the successor Trustee forthwith deliver all assets of the

Trust to such successor and deliver an accounting reflecting the

activities of the Trust since the last accounting

13
ARTICLE VI

TRANSFER OF INTERESTS AND

ACQUISITION OF ADDITIONAL INTERESTS

Section 6.01 Prohibition of Transfers of Interests Except

as specifically provided in Section 6.03 below or where the Transaction

is between Beneficiaries no Beneficiary shall sell assign pledge

encumber or otherwise transfer its Interest in the Trust or any portion

thereof unless prior thereto the Internal Revenue Service shall consent

to such Transaction

Section 6.02 Loss of Exempt and Qualified Status of Benef

ciary If any Beneficiary receives final determination from the

Internal Revenue Service or any equivalent state taxing authority to

the effect that the Beneficiary is no longer exempt from federal and

state income taxation under the Code as qualified trust within the

meaning of the Code such Beneficiary shall notify the Trustee and the

other Beneficiaries in writing within five days of such notice of

loss of exemption in accordance with the procedure set forth in Section

6.03 below

Section 6.03 Redemption and Liquidation In the event

Beneficiary loses its exempt or qualified status as provided in Section

6.02 above and the Trustee exercises its rights under this Section 6.03

then subject to Section 4.02e the Trustees shall undertake any one of

the following courses of action

Redeem the Interest held by such Beneficiary The

Trustee in its sole discretion may elect to pay accrued

Interest in lump sum or by payment of series of install

ments

If such Interest is redeemed in lump

sum payment shall be made in cash or its equiva

lents paid on or prior to the last day of the second

month succeeding the month in which such written

notification of final determination as described in

Section 6.02 above is received by the Trustee In

the event of such lump sum payment the Interest

being redeemed shall be valued by an independent

third party appraiser selected by persons appointed

by the Trustee and such Beneficiary If no such

appraiser can be agreed upon then no lump sum shall

be paid The value determined by such appraiser

shall include the accrued but undistributed earnings

to which such Beneficiary is entitled but shall

14
exclude the Beneficiarys share of reserves as

determined by the Trustee in its sole discretion

costs of the appraisal other costs associated with

the redemption and other costs or expenses

including attorneys fees and costs as result of

the Beneficiarys ceasing to be qualified andexempt

under the Code or as result of Beneficiarys

breach of the Trust as the case may

If such Interest is redeemed by payment of

series of installments such installments shall be

in cash shall consist of amounts to which such

Beneficiary would have been entitled if it continued

as Beneficiary and shall be paid at the same

times as other Beneficiaries are paid less its

share of reserves as determined by the Trustee in

its sole discretion costs associated with the

redemption and other costs or expenses including

attorneys fees and costs as result of such

Beneficiarys ceasing to be qualified or exempt

under the Code

Transfer an undivided interest in all of the Trusts

property to the extent of such Beneficiarys Interest less

its share of reserves as determined by the Trustee In Its

sole discretion costs associated with the transfer and other

costs of expenses including attorneys fees and costs as

result of such Beneficiarys ceasing to be qualified and

exempt under the Code or as result of such Beneficiarys

breach of this Trust as the case may be to trust to

similar custodial account or to similar entity for the

benefit of such Beneficiary The costs of any tax ruling

applied for by the Trustee In connection with such transfer

shall In any event be borne by such Beneficiary

Cc Take such other steps as It deems reasonably

necessary or prudent in order to enable the Trust to retain

its status as qualified and exempt under the Code It is

expressly understood that in the event this Section 6.03

becomes operative with respect to Beneficiary such Bene

ficiary shall forthwith cease to be Beneficiary of this

Trust and shall have only the right to receive property

representing its Interest In the Trust in the manner provided

in this Agreement

Section 6.04 Acquisition of Additional Interests If

Beneficiary ceases to be qualified and taxexempt trust under the

Code the Trustee In addition to Its rights set forth in Section 6.03

15
above shall first offer such Beneficiarys Interest to the remaining

Beneficiaries and thereafter to the extent the Interest has not been

subscribed by remaining Beneficiaries may in its sole discretion

offer such Beneficiarys Interest or the remaining part thereof to other

Beneficiaries on such terms and conditions as the Trustee and the

remaining Beneficiaries shall agree

16
ARTICLE VII

TAX QUALIFICATION AND EXEMPTION

Section 7.01 Maintenance of Status Each of the Benef

ciaries hereby represents to the other Beneficiaries under the Trust as

follows

It is exempt from federal Income taxation under the

Code and hereby agrees to use all reasonable efforts to

maintain that status In the event such status is determined

by the Internal Revenue Service or equivalent state taxing

authority not to exist or Is hereafter lost such Beneficiary

hereby agrees to notify the Trustee each other Beneficiary

and the Trust Counsel

It shall take such action as the Internal Revenue

Service requires if any in connection with granting

favorable determination letter or the equivalent to the Trust

to the effect the Trust Is exempt from federal income taxation

under the Code and is qualified trust pursuant to the Code

17
ARTICLE VIII

TERMINATION

The Trust created by this Agreement shall terminate upon the

earliest to occur of the following

Ninety 90 days after the effective date of the

resignation or termination of the Trustee if there shall not

have been appointed successor Trustee or Trustees prior to

the expiration of such ninety 90 days and if there is not

then in office remaining coTrustee

Repayment in full of the obligations owed to the

Trust in connection with the Transaction and distribution of

the proceeds thereof to the Beneficiaries after payment of

any final expenses of the Trust pro rata according to their

Interests

The unanimous decision on the part of the Benef

ciaries which shall be communicated to the Trustee by notice

that the commitment has been breached and the Transaction is

not to be funded In such case the Trustee shall promptly

liquidate the interim investments of the Trust and distribute

the balance of the Trust assets to the Beneficiaries according

to their Interests

At any time after the Transaction is funded upon

the decision by Beneficiaries holding at least seventyfive

per cent 75% of the total investment of the Trust which

shall be communicated by notice to the Trustee to liquidate

the Trust In such event the Trustee shall use reasonable

efforts acting upon the written instructions to sell the

Trust estate If such sale is not consummated within four

months after receipt by the Trustee of the notice of intent to

liquidate the Beneficiaries shall pay or provide for all

remaining expenses and obligations of the Trust pro rata

according to their Interests and the promissory note or

other documentation evidencing the Transaction shall be

distributed in kind to the Beneficiaries pro rata according to

their Interests If the Trust estate is sold by the Trust

the Trustee shall pay or provide for all remaining expenses

and obligations of the Trust and shall distribute the balance

of its assets to the Beneficiaries pro rata according to their

Interests

18
On termination of the Trust the Trustee shall provide

written accounting which shall be audited to the Beneficiaries with

respect to the final fiscal period of the Trust Notwithstanding any

termination of the Trust the indemnities set forth in this Agreement

shall remain in full force and effect for three years thereafter

19
ARTICLE IX

GENERAL PROVISIONS

Section 9.01 Governing Law This Agreement has been exe

uted and delivered in the State of Louisiana and shall be exclusively

governed by and construed and enforced in accordance with the laws of

such state and any applicable laws of the United States including but

not limited to ERISA In the event of any conflict between ERISA and

any provision of this Agreement or of state law the provisions of

ERISA shall prevail

Section 9.02 Notices Any notice given pursuant to this

Agreement shall be in writing and shall be personally delivered or sent

by registered or certified mail postage prepaid to each party to be

notified at its respective address set forth on the signature pages or

to such other address as any such party shall have otherwise designated

by notice given to each Beneficiary to the Trustee and to Trust

Counsel notice sent by mail shall be deemed receive five

business days after its deposit in the United States mail

Section 9.03 Amendments This Agreement may be amended only

by writing signed by the Trustee and by the then Beneficiaries holding

majority of the total investments in the Trust

Section 9.04 Headings The headings of the Articles and

Sections of this Agreement are for convenience only and shall not be

deemed to affect the interpretation or validity of any part of this

Agreement

Section 9.05 Severability Any provision of this Agreement

which is inconsistent with the intent of the parties hereto that the

Trust created hereby shall be and remain exempt from federal and state

income taxation shall to that extent be deemed null and void In the

event any provision of this Agreement in whole or in part or the

application of any provision of specific situation is held to be

invalid or unenforceable by the final judgment of court of competent

jurisdiction after appeal or after the time for appeal has expired

such invalidity shall be limited to such specific provision or portion

thereof or to such situation and this Agreement shall be construed

and applied in such manner as to minimize such unenforceability This

Agreement shall otherwise remain in full force and effect

Section 9.06 Expenses of Disputes In the event any dispute

arises as to any subject matter of this Agreement in addition to such

other relief to which any party may be entitled the prevailing party or

parties to such dispute shall be entitled to recover its or their

20
reasonable expenses including attorneys fees arising fom such

dispute

Section 9.07 No Third Party Rights This Agreement is for

the sole benefit of the parties hereto and their respective successors

and shall not be deemed to confer any rights upon any third parties

Section 9.08 Counterparts Effectiveness This Agreement

may be signed in two or more counterparts each of which shall

constitute but one single agreement This Agreement shall not be

effective until executed by each party for whom signature line is

provided below

Section 9.09 Loss of Qualified Status of Trust If the

Trust receives notices from any governmental agency that the Trust has

lost or is threatened with loss of its qualified and exempt status under

the Code the Trustee shall give immediate notice thereof to each

Beneficiary and the Trustee shall use its best efforts to reinstate or

retain such exempt status of the Trust Should the Trust lose such

exempt status the Trustee shall use its best efforts to ensure that the

Beneficiaries do not lose their qualified taxexempt status as result

thereof

Section 9.10 Disputes Arbitration In the event any

dispute arises as to any subject matter of this Agreement it shall be

submitted to arbitration under the commercial rules of the American

Arbitration Association and in addition to such other relief to which

any party may be entitled the prevailing party or parties to such

dispute shall be entitled to recover their reasonable expenses

including attorneys fees arising from such dispute

Section 9.11 Other Documents Each party to this Agreement

whenever and as often as requested to do so by any other party to this

Agreement or Trust Counsel shall execute or provide such other and

further documents and instruments as may be requested in order to

fulfill the purposes terms and conditions of this Agreement

Section 9.12 Partition and Accounting No Beneficiary

under any circumstances in any manner or at any time shall seek or

otherwise assert the right to partition or division of the assets of

the Trust or except as otherwise specifically provided herein to an

accounting

Section 9.13 No Diversion No part of the corpus or Income

of the Trust which equitably belongs to any Beneficiary shall be used or

diverted for any purpose other than for the exclusive benefit of the

Beneficiary or its respective beneficiaries who are entitled to benefits

under the governing Instrument of such Beneficiary

21
IN WITNESS WHEREOF each of the parties to this Agreement has

executed and delivered the same as of the date first above written

TRUSTEE BENEFICIARIES

BATON ROUGE BUILDING AND

CONSTRUCTION INDUSTRY FOUNDATION

BY

Title

BY

Title

Address

BY

Title

Address

22
EXHIBIT

SIJNMARY DESCRIPTION OF TRANSACTION
EXHIBIT

BENEFICIAL INTERESTS

Amount of Contribution Percentage

Beneficiary Interest Interest

Totals
EXHIBIT

AUThORIZED INVESTMENTS

Examples

Investments in shortterm fixed income obligations of

every nature including but not limited to commercial paper bankers

acceptances repurchase agreements certificates of deposit variable

notes savings accounts governmental securities and other bonds notes

or evidences of indebtedness which are payable on demand or have

maturity date which is commensurate with the timing of the funding

obligations of the Transactions Such investment shall under usual

circumstances be held to maturity Maturity shall be defined as the

date at which obligations mature or if called for redemption prior

thereto the redemption date Such investments may be in certificates

of deposit and other investments with the Trustee provided they bear

the prevailing interest rate

Certificates of deposit issued by ______________________

____________________________________ provided that at the time of each

such investment the yield thereon is competitive with that offered by

other banks of the same or larger capitalization
EXHIBIT

ADMINISTRATIVE AND SERVICING PROCEDURES

Until the principal and interest of any mortgage owned by

the Trust and any lease payments due under any lease or ground lease are

paid in full the Trustee will proceed diligently to attempt to collect

all payments due under any such mortgage and/or leases as and when the

same shall become due The Trustee shall keep complete and accurate

records of and properly apply all sums paid to the Trustee on account of

each mortgage and/or lease for taxes and assessments premiums

on policies of casualty and liability insurance and mortgage

insurance premiums if the loan is insured

All late charges collected by the Trustee as provided

under the terms of any note and mortgage and/or any lease shall be

distributed to the Beneficiaries in the same manner as other payments

received by the Trust

The Trustee shall hold all funds in connection with any

mortgage and/or lease in separate bank trust account On or before

the fifteenth 15th day of each month the Trustee shall provide the

Beneficiaries with reconciliation for the preceding month of any

bank trust account maintained by the Trustee on behalf of the Trust

The Trustee shall hold all funds paid in by each

mortgagor and/or lessee under the terms of any mortgage and/or lease to

cover charges such as taxes assessments and insurance premiums in

separate bank trust accounts and will disburse such funds only for the

payment of or on account of such charges due and accruing under each

individual mortgage and/or lease

Once each year the Trustee shall certify that all

general property taxes and special assessments have been paid on any

properties securing the Transaction being serviced This certification

shall be made within sixty 60 days after April 10 of each year If it

appears that any general property taxes or special assessments have

become delinquent the Trustee shall pay such taxes and special assess

ments out of funds on hand as collected from each mortgagor and/or

lessee Any penalties incurred because of such delinquency if

sufficient funds were on hand shall also be paid by the Trustee at no

expense to the Trust However in no event shall the Trustee be

obligated to advance or pay general property taxes or special assess

ments from its own funds
The Trustee shall give attention to delinquentpayments

in accordance with generally recognized prudent mortgage banking

practices and will keep Beneficiaries informed monthly of the status of

such delinquencies

Each year within three months after the close of its

fiscal year the Trustee shall mail to each Beneficiary copy of the

Trustees audited annual financial statements

The Trustee shall allow any Beneficiarys authorized

agent or agents reasonable opportunity during normal business hours to

examine its books and records insofar as they relate to or affect any

mortgage or mortgages leases or properties owned by the Trust

provided there shall be no unreasonable interferences with or

interruption of the Trustees normal office routine and provided no

additional expense is incurred by the Trustee thereby

The casualty and liability insurance on each mortgage

and/or lease acquired by the Trust shall be in accordance with the

requirements established in the mortgage and/or lease At least thirty

30 days prior to the expiration of mortgagors and/or lessees

casualty and/or liability insurance policy the Trustee shall obtain

written evidence from the mortgagors and/or lessees insurance company

that the insurance requirements will continue to be met after the

expiration date of the current policy by renewal of said policy or by

the issuance of new policy The Trustee will retain the original

insurance policies endorsed with loss payable clause to the Trust

The Trustee on behalf of the Trust shall be authorized to

endorse all loss drafts Prior to endorsing any loss drafts covering

losses to buildings encumbered by any mortgage or mortgages owned by the

Trust or covered by any lease owned by the Trust the Trustee shall

satisfy Itself that the damage caused has been fully repaired that the

property has been placed in as good condition or better than its

condition prior to the loss that all bills for labor and materials in

repairing the damage have been paid or will be paid from the proceeds of

such drafts and that the damage has been repaired to the mortgagors

and/or lessees satisfaction In relation to losses In the amount of

Five Thousand Dollars $5000.00 or less the Trustee shall not be

required to make an inspection of the repairs but must obtain and retain

evidence of the mortgagors and/or lessees satisfaction with said

repairs

10 The Trustee shall make inspection of any property covered

by mortgage and/or lease which is one monthly payment in default

and as It becomes known to the Trustee shall promptly call to the

attention of each BenefiŁiary any lack of repair or other deterioration

or waste suffered or committed In respect to the premises covered by the
mortgage and/or lease Any loan in the process of foreclosure and any

lease in the process of unlawful detainer proceedings shall be inspected

by the Trustee on monthly basis

11 The Trustee shall promptly notify each Beneficiary if any

of the following shall come to the Trustees attention

default under the terms of mortgage and/or

lease

An unauthorized transfer of the premises and/or

assignment of the lease

An abandonment of the premises

Extensive damage to the premises as result of any

reason whatsoever

12 The Trustee shall not accept prepayment of the principal

of any mortgage owned by the Trust unless such prepayment is permitted

by the terms of the note or mortgage or unless the acceptance thereof is

authorized In writing by all of the Beneficiaries

13 In case of default the Trustee shall promptly institute

foreclosure and/or unlawful detainer proceedings or proceed to acquire

the premises by other means in accordance with applicable laws Such

steps shall not be taken until requested or approved in writing by the

Beneficiaries The Beneficiaries shall reimburse the Trustee for

necessary costs and expenses Including reasonable attorneys or

trustees fees which fees shall correspond to those fees customarily

charged In the area The Trustee will make no other charge for its

services in ordinary unopposed cases In cases where the

defaulting mortgagor contests the proceedings foreclosure is

prosecuted by court proceedings there is an action for receiver

ship there Is an action in unlawful detainer or there are

proceedings involving the bankruptcy court the Trustee may charge

reasonable fee for the extra services necessitated thereby but any such

fees shall only be charged with the approval of the Beneficiaries The

Trustee shall commence and conduct all legal proceedings in the Trusts

name as may be necessary In the Trustees discretion to protect the

interest of the Trust and shall take title to the premises in the name

of the Trust

In the event foreclosure proceedings are commenced or deed

to the mortgaged premises in lieu of foreclosure is obtained or the

premises are reacquired by unlawful detainer proceedings the Trustee

shall unless otherwise directed by the Beneficiaries promptly manage

and protect the premises in such manner and to such extent as is
customarily embraced in the proper management of property in the

locality involved including but not limited to the renting or leasing

of the premises the collection of rents attending to insurance on the

premises management and supervision of repairs and maintenance of the

premises and the rendering to the Beneficiaries of such reports as the

Beneficiaries may reasonably require The Trustee shall segregate and

hold for the Beneficiaries until paid over to them all rentals and other

monies in respect of said premises which may come into the Trustees

possession The Trust shall compensate the Trustee for property

management in accordance with the standard prevailing rate in the

locality in which the premises are located In any event the Trustee

will make periodic inspections of the premises and report to the

Beneficiaries with recommendations of action to be taken including sale

or other disposition if any to the end that the premises will be

safeguarded to the fullest extent possible and disposed of as soon as

practicable taking into consideration among other things the market

conditions which exist at the time the condition of the premises and

the then existing investment objectives of the Trust

14 The Trustee shall maintain fidelity bond having broad

coverage with responsible surety company on all employees handling the

Trusts funds monies documents and/or papers which bond shall protect

the Trustee against losses including theft embezzlement fraud and

misplacement

15 The Beneficiaries may by express writing but not other

wise waive the performance or may reasonably control the performance of

acts to be performed by the Trustees so long as such control does not

require added expenses to be incurred by the Trustee

MC dj

5/23/84

BATON3