This is an agreement made between a trustee and a beneficiary whereby the trustee
agrees to hold certain shares in the capital stock of a company in trust for the
beneficiary. This document lists the rights and duties of the trustee regarding the
shares of stock. It effectively transfers the shares of stock into the trust. This should be
used by a trustee and a beneficiary when entering into an agreement for the trustee to
hold stock on behalf of the beneficiary.
DECLARATION OF TRUST ATTACHED TO
APPLICATION FOR STOCK
THIS DECLARATION OF TRUST (the “Declaration”) is made this ____ day of
_________, 2____, by and between ____________________ (the “Beneficiary”) and
_______________________ (the “Trustee”), hereinafter collectively referred to as (the
“Parties”).
WHEREAS the Trustee is the registered and beneficiary owner of _________ (___)
[describe the type of stock owner, for example, common, preferred] shares (the “Shares”) in the
capital stock of __________________ (the “Company”);
AND WHEREAS the Trustee shall hold the said Shares owned by it/him/her in trust as
Trustee for the Beneficiary.
NOW THEREFORE THE TRUSTEE AND THE BENEFICIARY hereby acknowledges
and agrees as follows:
1. The Trustee agrees that it/he/she shall hold the said Shares in trust for the Beneficiary
free and clear of any liens or encumbrances.
2. The Trustee shall, in addition to holding the said Shares in trust for the Beneficiary, hold
any and all income derived from such Shares in trust for the benefit of the Beneficiary
and shall transfer the Shares and any income derived thereon in accordance with any
written instructions the Trustee receives from the Beneficiary.
3. The Trustee shall promptly exercise any and all voting rights that may be associated with
the Shares being held in trust by the Trustee for the benefit of the Beneficiary and shall
exercise such voting rights in accordance with written instructions received from the
Beneficiary.
4. The Trustee shall not pledge, hypothecate, sell, transfer or encumber the Shares in any
way whatsoever without the prior written consent and direction by the Beneficiary.
5. The Trustee shall execute and deliver any and all documents which may be required to be
executed on behalf of the Beneficiary upon receiving written instruction from the
Beneficiary to do so.
6. Any and all notices or correspondence received by the Trustee from the Corporation in
respect to the Shares held by the Trustee in trust for the Beneficiary shall be forthwith
provided to the Beneficiary by the Trustee.
7. The Beneficiary hereby agrees to release, indemnify and forever discharge the Trustee,
its/his/her heirs, executors, successors and assigns from any and all liability the Trustee
© Copyright 2011 Docstoc Inc. registered document proprietary, copy not 2
may incur in acting as Trustee for the Beneficiary in respect to the Shares, which shall
include, but not be limited to any actions taken by the Trustee in respect to the Shares
pursuant to any written instructions received by the Trustee from the Beneficiary and
pursuant to any terms and conditions contained herein.
8. This Declaration shall be governed under the laws of the State of ______________
applicable therein, and as amended from time to time.
9. Each provision of this Declaration is intended to be severable. If any provision hereof is
illegal or invalid, such illegality or invalidity shall not affect the validity of the remainder
hereof.
10. The Parties agree that any disputes or questions arising hereunder including shall be
settled by arbitration in accordance with the rules of the American Arbitration
Association then in force, and that the arbitration hearing shall be held in the city in
which the principal office of the party requesting arbitration is located.
IN WITNESS WHEREOF the parties hereto have duly executed this Declaration as of the
day and year first written above.
Witness: Beneficiary
[Insert Full Address]
Witness: Trustee
[Insert Full Address]
© Copyright 2011 Docstoc Inc. registered document proprietary, copy not 3
INFORMATION AND FORMS ARE PROVIDED "AS IS" WITHOUT ANY EXPRESS OR IMPLIED WARRANTY OF ANY KIND
INCLUDING WARRANTIES OF MERCHANTABILITY, NONINFRINGEMENT OF INTELLECTUAL PROPERTY, OR FITNESS
FOR ANY PARTICULAR PURPOSE. IN NO EVENT SHALL DOCSTOC, INC., OR ITS AGENTS, OFFICERS, ATTORNEYS,
ETC., BE LIABLE FOR ANY DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF
PROFITS, BUSINESS INTERRUPTION, LOSS OF INFORMATION) ARISING OUT OF THE USE OF OR INABILITY TO USE
THE MATERIALS, EVEN IF DOCSTOC HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. They are for
guidance and should be modified by you or your attorney to meet your specific needs and the laws of your state or jurisdiction. Use at
your own risk. Docstoc® is NOT providing legal or any other kind of advice and is not creating or entering into an Attorney-Client
relationship. The information, reports, and forms are not a substitute for the advice of your own attorney. The law is a personal matter
and no general information or forms or like the kind Docstoc provides can always correctly fit every circumstance.
Note: Carefully read and