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This file contains:
From Coopers & Lybrand to RN and PN reporting on an audit of RN's homes. Author unkown. 11 pgs. [Letter], 8/20/1973
From Coopers & Lybrand to RN and PN reporting on an audit of RN's homes. Author unknown. 11 pgs. [Letter], 8/20/1973
Agreement of Trust between RN and PN, with John D. Ehrlichman as Trustee. Author unknown. 37 pages. [Other Document], 8/14/1972
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26126192
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WHSF: Returned, 8-1
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26126192
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WHSF: Returned, 8-1
description
This file contains:
From Coopers & Lybrand to RN and PN reporting on an audit of RN's homes. Author unkown. 11 pgs. [Letter], 8/20/1973
From Coopers & Lybrand to RN and PN reporting on an audit of RN's homes. Author unknown. 11 pgs. [Letter], 8/20/1973
Agreement of Trust between RN and PN, with John D. Ehrlichman as Trustee. Author unknown. 37 pages. [Other Document], 8/14/1972
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Richard M. Nixon's Returned Materials Collection
Returned White House Special Files
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Richard Nixon Presidential Library
White House Special Files Collection
Folder List
Box Number
Folder Number
Document Date
Document Type
Document Description
8
1
08/20/1973
Letter
From Coopers & Lybrand to RN and PN
reporting on an audit of RN's homes. Author
unkown. 11 pgs.
8
1
08/20/1973
Letter
From Coopers & Lybrand to RN and PN
reporting on an audit of RN's homes. Author
unknown. 11 pgs.
8
1
08/14/1972
Other Document
Agreement of Trust between RN and PN,
with John D. Ehrlichman as Trustee. Author
unknown. 37 pages.
Monday, August 17, 2009
Page 1 of 1
THE PRESIDENT and MRS. NIXON
Letter dated August 20, 1973
COOPERS & LYBRAND
CERTIFIED PUBLIC ACCOUNTANTS
COOPERS & LYBRAND
IN PRINCIPAL AREAS
1251 AVENUE OF THE AMERICAS
OF THE WORLD
NEW YORK, N.Y. 10020
August 20, 1973
The President and Mrs. Nixon
The White House
Washington, D. C. 20500
Dear Mr. President and Mrs. Nixon:
On this date we reported upon our examination of the
statement of your assets and liabilities at May 31, 1973 and the
related statement of changes in your net assets for the period
from January 1, 1969 to May 31, 1973.
Our examination was made in accordance with generally
accepted auditing standards, and accordingly included such tests
of the accounting records and such other auditing procedures as we
considered necessary in the circumstances.
We examined, among other things, the accounting records
and other documents relating to: the purchase of your residential
properties in Key Biscayne, Florida and San Clemente, California
and the sources of funds used therefor; the sale of a part of your
interest in the San Clemente property; and the costs paid by you for
improvements and for operations of the residential properties through
May 31, 1973.
At your request we set forth below, as supplemental infor-
mation the details with respect to: (a) the purchase of your resi-
dential properties and the sources of funds used therefor; (b) the
amounts paid (i) with respect to the related obligations including
interest, (ii) for improvements and furnishings, and (iii) for
The President and Mrs. Nixon - 2
operations of the residential properties, all through May 31, 1973;
and (c) the balance of those obligations outstanding at that date
that are related to the properties.
RESIDENTIAL PROPERTIES, KEY BISCAYNE
500 Bay Lane. Your property at 500 Bay Lane, Key Biscayne,
Florida consisting of land, building and furnishings was purchased
on December 19, 1968 from Senator and Mrs. George A. Smathers for
$125,000. Other costs in connection with the purchase were $527.
The total purchase price of this residence was $125,527.
Payment for this property was made as follows:
Assumption of unpaid balance
of mortgages payable to:
First Federal Savings &
Loan Association of
Miami
$45,373
Chaswil, Inc. (mortgage
subsequently transferred
to Paul E. Williams)
36,875 $ 82,248
Amount paid from bank loan
(described below)
43,497
125,745
Less, Net settlement for
interest, taxes, etc.
218
Total
$125,527
516 Bay Lane. Your property at 516 Bay Lane, Key Biscayne,
Florida consisting of land, building and furnishings was also pur-
chased on December 19, 1968 from Manuel Arca, Jr. and Evora Bonet de
Arca for $127,800. Other costs in connection with the purchase were
$128. The total purchase price of this residence was $127,928.
The President and Mrs. Nixon - 3
Payment for this property was made as follows:
Assumption of unpaid balance
of mortgage payable to
First Federal Savings &
Loan Association of Miami
$ 27,718
Promissory note and purchase
money mortgage issued to
Manuel Arca, Jr. and Evora
Bonet de Arca, sellers
with annual interest of
7.5% ( the Arca note)
80,000
Amount paid from bank loan
(described below)
20,243
127,961
Less, Net settlement for
interest, taxes, etc.
33
Total
$127,928
The two previously mentioned payments of $43,497 and
$20,243 were made from the proceeds of an unsecured loan to you in
the amount of $65,000, obtained on December 19, 1968 from the First
National Bank of Miami. These proceeds were disbursed as follows:
Paid to Senator and
Mrs. George A. Smathers
$ 43,497
Paid to Manuel Arca, Jr. and
Evora Bonet de Arca
20,243
Sundry expenditures in con-
nection with the loan
closing
643
64,383
Cash remitted to you
617
Total loan
$ 65,000
The President and Mrs. Nixon - 4
During the period from December 19, 1968 to June 13, 1969,
you made monthly payments with respect to the mortgages on the Bay
Lane residences from your personal funds. The payments were as fol
lows:
Principal
Interest
Total
First Federal Savings &
Loan Association of Miami:
500 Bay Lane
$ 805
$1,349
$2,154
516 Bay Lane
595
630
1,225
Chaswil, Inc./Paul E.
Williams
584
916
1,500
Total
$1,984
$2,895
$4,879
On June 13, 1969, the existing mortgages with respect to
the property at 516 Bay Lane were paid. You provided $11,100 from
your personal funds and the balance was paid from the proceeds of
your mortgage note payable to Greater Miami Federal Savings & Loan
Association for $100,000.
These funds were applied as follows:
Payment in full of unpaid
principal and interest
($3,000) of the Arca note
$ 83,000
Payment in full of the unpaid
principal and interest ($195)
of the mortgage payable to
First Federal Savings & Loan
Association of Miami
27,318
Sundry costs in connection with
the refinancing
782
Total
$111,100
On September 4, 1969, you repaid from your personal funds
the loan of $65,000 to the First National Bank of Miami and the
interest thereon of $3,504.
The President and Mrs. Nixon - 5
You also paid from your personal funds the monthly install-
ments on the existing mortgages on these properties as they have
become due from June 13, 1969 to May 31, 1973. These payments are
summarized as follows:
Principal
Interest
Total
First Federal Savings &
Loan Association of Miami
$ 7,252
$10,802
$18,054
Chaswil, Inc. / Paul E.
Williams
6,413
7,987
14,400
Greater Miami Federal
Savings & Loan Association
6,260
28,520
34,780
Total
$19,925
$47,309
$67,234
Through May 31, 1973 you paid from your personal funds for
improvements to these properties in the amounts of $37,942 with respect
to 500 Bay Lane, and $38,479 with respect to 516 Bay Lane as follows:
500 Bay Lane
516 Bay Lane
Remodeling
$24,734
$29,687
Furniture
13,208
8,792
Total
$37,942
$38,479
At May 31, 1973 these properties were subject to the liens
of mortgages as follows:
Monthly
Annual
Installments
Interest
Including
Balance
Mortgagee
Rate
Interest
of Mortgage
500 Bay Lane:
First Federal Savings &
Loan Association of
$359 to
Miami
6%
June, 1985
$ 37,316
Paul E. Williams
6%
$300 to
November,
1984
29,878
516 Bay Lane:
Greater Miami Federal
Savings & Loan Association
7.5%
$740 to
May, 1994
93,740
Total
$160,934
The President and Mrs. Nixon - 6
RESIDENTIAL PROPERTY, SAN CLEMENTE
We examined documents indicating that Richard M. Nixon and
Patricia Nixon, as joint tenants, are beneficiaries of a revocable
Trust established April 24, 1969 which terminates in ten years. This
Trust was formed to enable the Trustee (Title Insurance and Trust
Company of Los Angeles) to take title in your behalf to real property
in San Clemente, California.
The Trustee has taken title to two parcels of real property
with the following consideration:
The Cotton Parcel:
Land (approximately 26 acres)
and buildings purchased
July 15, 1969 from Victoria
Reyes Cotton Ogden, Lionel E.
Ogden, Edwin L. Harbach,
trustees under deed of trust
executed June 14, 1961,
Victoria Cotton Ogden, Lucy
Ellen Cotton, and Janice
Ogden Vest (formerly Janice
Lucy Ogden)
$1,400,000
Other costs in connection with
the purchase
100
1,400,100
The Elmore Parcel:
Land (approximately 2.9 acres)
purchased October 13, 1969
from John J. Elmore, John
Jameson Elmore and Stephen
Henry Elmore, trustees under
last will and testament of
Hetty J. Elmore
$100,000
Other costs in connection with
the purchase
54
100,054
Total
$1,500,154
The President and Mrs. Nixon - 7
Payment for the Cotton Parcel was made as follows:
Promissory Note with Purchase Money Trust
Deed, issued to sellers, payable in four
installments of $100,000 each July 15
thereafter, and $600,000 payable July 15,
1974, with annual interest at 7.5% (the
Cotton note)
$1,000,000
Cash paid by you
399,609
(The proceeds of a loan to you from
Robert H. Abplanalp in the amount of
$450,000 with annual interest at 8%,
had been deposited in your bank account
on July 11, 1969.)
Net settlement for real estate taxes
491
Total
$1,400,100
Payment for the Elmore Parcel was made as follows:
Promissory Note with Purchase Money Trust
Deed, issued to sellers, payable in five
installments of $16,000 each October 13,
including October 13, 1974, with annual
interest at 7.5% ( the Elmore note)
$ 80,000
Cash paid by you
20,054
Total
$ 100,054
The foregoing obligations are secured solely by the property
held in Trust and do not involve any personal liability.
On July 15, 1970, the proceeds of a loan from Robert H.
Abplanalp in the amount of $175,000, with interest at 8%, were
deposited in your bank account. On that date, you paid the current
installment on the Cotton note ($100,000) and the related interest
($75,000).
On October 13, 1970, you paid from your personal funds the
current installment on the Elmore note ($16,000) and the related
interest ($6,000).
The President and Mrs. Nixon - 8
On December 15, 1970, you sold a portion of your interest
in the Trust, representing the entire Elmore Parcel (2.9 acres) and
a part (approximately 20.1 acres) of the Cotton Parcel, to Robert H.
Abplanalp and C. G. Rebozo, co-partners doing business under the
firm name and style of B. & C. Investment Company. On December 24,
1970, the Trustee acknowledged receipt of a document of assignment
and transfer of a part of your interest in the Trust to B. & C.
Investment Company.
Consideration received for this sale consisted of:
Assumption of obligation under
Promissory Notes of B. & C.
Investment Company of:
Part of the Cotton note
$560,000
The Elmore note
64,000
Principal amount of two notes
payable to Robert H. Abplanalp,
deemed paid
625,000 $1,249,000
After the sale, you retained your interest in the Trust
representing approximately 5.9 acres of the Cotton Parcel including
the residence and other improvements referred to as Casa Pacifica,
and had an obligation of $340,000 representing the unpaid portion of
the Cotton note which had not been assumed by B. & C. Investment
Company.
Subsequently, you paid from your personal funds the inter-
est ($56,883) owed on the notes payable to Robert H. Abplanalp ( the
principal of which was deemed paid in connection with the sale to
B. & C. Investment Company ), the interest ($28,993) due to December 15,
1970 on the Cotton and Elmore notes, and the installments and inter-
est ($113,102) due in 1971 and 1972 on the part of the Cotton note
not assumed by B. & C. Investment Company.
The President and Mrs. Nixon - 9
At May 31, 1973, the unpaid balance of the Cotton note
amounted to $700,000. At that date, your obligation for the note
amounted to $264,440. It is due, with interest of 7.5%, in install-
ments of $37,780 and $226,660 on July 15, 1973 and 1974, respectively.
Your interest in Casa Pacifica is subject to the terms of the Pur-
chase Money Trust Deed issued with the Cotton note.
Prior to May 31, 1973 you incurred and paid from your
personal funds $217,270 for improvements, furnishings and other costs
at Casa Pacifica as follows:
Description
Amount
Improvements and furnishings:
Kitchen remodeling
$ 30,440
Other remodeling costs
27,167
Painting
25,165
Swimming pool, including heater
14,950
Work on sewer system
13,318
Landscaping
7,804
Work on porch and fireplace
5,936
Driveway paving
1,146
Other costs
6,188
Furnishings
55,863
187,977
Acquisition costs:
Commission to realtor
$25,000
Geotechnical survey
4,293
29,293
Total
$217,270
AMOUNTS PAID FOR OPERATIONS OF THE RESIDENTIAL PROPERTIES
During the period from the respective dates of purchase
to May 31, 1973, you have paid from your personal funds certain
operating expenses, exclusive of interest, of your residences in
Key Biscayne, Florida and in San Clemente, California. The amounts
The President and Mrs. Nixon - 10
paid, after deducting $4,800 representing utilities and maintenance
costs of the golf facilities at San Clemente that were reimbursed by
The Golfing Friends of the President, were:
Real estate taxes
$ 72,298*
Utilities
31,175
Fire and casualty insurance
4,713
Household maintenance
59,104
$167,290
*This amount does not include $2,125 of
real estate taxes that were accrued
but were not paid at May 31, 1973.
OPINION
The amounts set forth above with respect to the purchase or
improvement of the residential properties are stated on the basis of
your cost. They do not include any amounts paid by the Government of
the United States or others in connection with these residences.
In our opinion, the information set forth above presents
fairly: (a) the purchase of your residential properties and the
sources of the funds used therefor; (b) the amounts paid by you (i)
with respect to the related obligations including interest, (ii) for
improvements and furnishings, and (iii) for operations of the resi-
dential properties, all through May 31, 1973; and (c) the balance of
those obligations outstanding at that date that are related to the
properties.
truly
yours,
looper V
THE PRESIDENT and MRS. NIXON
Letter dated August 20, 1973
COOPERS & LYBRAND
CERTIFIED PUBLIC ACCOUNTANTS
COOPERS & LYBRAND
IN PRINCIPAL AREAS
1251 AVENUE OF THE AMERICAS
OF THE WORLD
NEW YORK, N.Y. 10020
August 20, 1973
The President and Mrs. Nixon
The White House
Washington, D. C. 20500
Dear Mr. President and Mrs. Nixon:
On this date we reported upon our examination of the
statement of your assets and liabilities at May 31, 1973 and the
related statement of changes in your net assets for the period
from January 1, 1969 to May 31, 1973.
Our examination was made in accordance with generally
accepted auditing standards, and accordingly included such tests
of the accounting records and such other auditing procedures as we
considered necessary in the circumstances.
We examined, among other things, the accounting records
and other documents relating to: the purchase of your residential
properties in Key Biscayne, Florida and San Clemente, California
and the sources of funds used therefor; the sale of a part of your
interest in the San Clemente property; and the costs paid by you for
improvements and for operations of the residential properties through
May 31, 1973.
At your request we set forth below, as supplemental infor-
mation the details with respect to: (a) the purchase of your resi-
dential properties and the sources of funds used therefor; (b) the
amounts paid (i) with respect to the related obligations including
interest, (ii) for improvements and furnishings, and (iii) for
The President and Mrs. Nixon - 2
operations of the residential properties, all through May 31, 1973;
and (c) the balance of those obligations outstanding at that date
that are related to the properties.
RESIDENTIAL PROPERTIES, KEY BISCAYNE
500 Bay Lane. Your property at 500 Bay Lane, Key Biscayne,
Florida consisting of land, building and furnishings was purchased
on December 19, 1968 from Senator and Mrs. George A. Smathers for
$125,000. Other costs in connection with the purchase were $527.
The total purchase price of this residence was $125,527.
Payment for this property was made as follows:
Assumption of unpaid balance
of mortgages payable to:
First Federal Savings &
Loan Association of
Miami
$45,373
Chaswil, Inc. (mortgage
subsequently transferred
to Paul E. Williams)
36,875 $ 82,248
Amount paid from bank loan
(described below)
43,497
125,745
Less, Net settlement for
interest, taxes, etc.
218
Total
$125,527
516 Bay Lane. Your property at 516 Bay Lane, Key Biscayne,
Florida consisting of land, building and furnishings was also pur-
chased on December 19, 1968 from Manuel Arca, Jr. and Evora Bonet de
Arca for $127,800. Other costs in connection with the purchase were
$128. The total purchase price of this residence was $127,928.
The President and Mrs. Nixon - 3
Payment for this property was made as follows:
Assumption of unpaid balance
of mortgage payable to
First Federal Savings &
Loan Association of Miami
$ 27,718
Promissory note and purchase
money mortgage issued to
Manuel Arca, Jr. and Evora
Bonet de Arca, sellers
with annual interest of
7.5% ( the Arca note)
80,000
Amount paid from bank loan
(described below)
20,243
127,961
Less, Net settlement for
interest, taxes, etc.
33
Total
$127,928
The two previously mentioned payments of $43,497 and
$20,243 were made from the proceeds of an unsecured loan to you in
the amount of $65,000, obtained on December 19, 1968 from the First
National Bank of Miami. These proceeds were disbursed as follows:
Paid to Senator and
Mrs. George A. Smathers
$ 43,497
Paid to Manuel Arca, Jr. and
Evora Bonet de Arca
20,243
Sundry expenditures in con-
nection with the loan
closing
643
64,383
Cash remitted to you
617
Total loan
$ 65,000
The President and Mrs. Nixon - 4
During the period from December 19, 1968 to June 13, 1969,
you made monthly payments with respect to the mortgages on the Bay
Lane residences from your personal funds. The payments were as fol-
lows:
Principal
Interest
Total
First Federal Savings &
Loan Association of Miami:
500 Bay Lane
$ 805
$1,349
$2,154
516 Bay Lane
595
630
1,225
Chaswil, Inc./Paul E.
Williams
584
916
1,500
Total
$1,984
$2,895
$4,879
On June 13, 1969, the existing mortgages with respect to
the property at 516 Bay Lane were paid. You provided $11,100 from
your personal funds and the balance was paid from the proceeds of
your mortgage note payable to Greater Miami Federal Savings & Loan
Association for $100,000.
These funds were applied as follows:
Payment in full of unpaid
principal and interest
($3,000) of the Arca note
$ 83,000
Payment in full of the unpaid
principal and interest ($195)
of the mortgage payable to
First Federal Savings & Loan
Association of Miami
27,318
Sundry costs in connection with
the refinancing
782
Total
$111,100
On September 4, 1969, you repaid from your personal funds
the loan of $65,000 to the First National Bank of Miami and the
interest thereon of $3,504.
The President and Mrs. Nixon - 5
You also paid from your personal funds the monthly install-
ments on the existing mortgages on these properties as they have
become due from June 13, 1969 to May 31, 1973. These payments are
summarized as follows:
Principal
Interest
Total
First Federal Savings &
Loan Association of Miami
$ 7,252
$10,802
$18,054
Chaswil, Inc / Paul E.
Williams
6,413
7,987
14,400
Greater Miami Federal
Savings & Loan Association
6,260
28,520
34,780
Total
$19,925
$47,309
$67,234
Through May 31, 1973 you paid from your personal funds for
improvements to these properties in the amounts of $37,942 with respect
to 500 Bay Lane, and $38,479 with respect to 516 Bay Lane as follows:
500 Bay Lane
516 Bay Lane
Remodeling
$24,734
$29,687
Furniture
13,208
8,792
Total
$37,942
$38,479
At May 31, 1973 these properties were subject to the liens
of mortgages as follows:
Monthly
Annual
Installments
Interest
Including
Balance
Mortgagee
Rate
Interest
of Mortgage
500 Bay Lane:
First Federal Savings &
Loan Association of
$359 to
Miami
6%
June, 1985
$ 37,316
Paul E. Williams
6%
$300 to
November,
1984
29,878
516 Bay Lane:
Greater Miami Federal
Savings & Loan Association
7.5%
$740 to
May, 1994
93,740
Total
$160,934
The President and Mrs. Nixon - 6
RESIDENTIAL PROPERTY, SAN CLEMENTE
We examined documents indicating that Richard M. Nixon and
Patricia Nixon, as joint tenants, are beneficiaries of a revocable
Trust established April 24, 1969 which terminates in ten years. This
Trust was formed to enable the Trustee (Title Insurance and Trust
Company of Los Angeles) to take title in your behalf to real property
in San Clemente, California.
The Trustee has taken title to two parcels of real property
with the following consideration:
The Cotton Parcel:
Land (approximately 26 acres)
and buildings purchased
July 15, 1969 from Victoria
Reyes Cotton Ogden, Lionel E.
Ogden, Edwin L. Harbach,
trustees under deed of trust
executed June 14, 1961,
Victoria Cotton Ogden, Lucy
Ellen Cotton, and Janice
Ogden Vest (formerly Janice
Lucy Ogden)
$1,400,000
Other costs in connection with
the purchase
100
1,400,100
The Elmore Parcel:
Land (approximately 2.9 acres)
purchased October 13, 1969
from John J. Elmore, John
Jameson Elmore and Stephen
Henry Elmore, trustees under
last will and testament of
Hetty J. Elmore
$100,000
Other costs in connection with
the purchase
54
100,054
Total
$1,500,154
The President and Mrs. Nixon - 7
Payment for the Cotton Parcel was made as follows:
Promissory Note with Purchase Money Trust
Deed, issued to sellers, payable in four
installments of $100,000 each July 15
thereafter, and $600,000 payable July 15,
1974, with annual interest at 7.5% ( the
Cotton note)
$1,000,000
Cash paid by you
399,609
(The proceeds of a loan to you from
Robert H. Abplanalp in the amount of
$450,000 with annual interest at 8%,
had been deposited in your bank account
on July 11, 1969.)
Net settlement for real estate taxes
491
Total
$1,400,100
Payment for the Elmore Parcel was made as follows:
Promissory Note with Purchase Money Trust
Deed, issued to sellers, payable in five
installments of $16,000 each October 13,
including October 13, 1974, with annual
interest at 7.5% ( the Elmore note)
$ 80,000
Cash paid by you
20,054
Total
$ 100,054
The foregoing obligations are secured solely by the property
held in Trust and do not involve any personal liability.
On July 15, 1970, the proceeds of a loan from Robert H.
Abplanalp in the amount of $175,000, with interest at 8%, were
deposited in your bank account. On that date, you paid the current
installment on the Cotton note ($100,000) and the related interest
($75,000).
On October 13, 1970, you paid from your personal funds the
current installment on the Elmore note ($16,000) and the related
interest ($6,000).
The President and Mrs. Nixon - 8
On December 15, 1970, you sold a portion of your interest
in the Trust, representing the entire Elmore Parcel (2.9 acres) and
a part (approximately 20.1 acres) of the Cotton Parcel, to Robert H.
Abplanalp and C. G. Rebozo, co-partners doing business under the
firm name and style of B. & C. Investment Company. On December 24,
1970, the Trustee acknowledged receipt of a document of assignment
and transfer of a part of your interest in the Trust to B. & C.
Investment Company.
Consideration received for this sale consisted of:
Assumption of obligation under
Promissory Notes of B. & C.
Investment Company of:
Part of the Cotton note
$560,000
The Elmore note
64,000
Principal amount of two notes
payable to Robert H. Abplanalp,
deemed paid
625,000 $1,249,000
After the sale, you retained your interest in the Trust
representing approximately 5.9 acres of the Cotton Parcel including
the residence and other improvements referred to as Casa Pacifica,
and had an obligation of $340,000 representing the unpaid portion of
the Cotton note which had not been assumed by B. & C. Investment
Company.
Subsequently, you paid from your personal funds the inter-
est ($56,883) owed on the notes payable to Robert H. Abplanalp ( the
principal of which was deemed paid in connection with the sale to
B. & C. Investment Company ), the interest ($28,993) due to December 15,
1970 on the Cotton and Elmore notes, and the installments and inter-
est ($113,102) due in 1971 and 1972 on the part of the Cotton note
not assumed by B. & C. Investment Company.
The President and Mrs. Nixon - 9
At May 31, 1973, the unpaid balance of the Cotton note
amounted to $700,000. At that date, your obligation for the note
amounted to $264,440. It is due, with interest of 7.5%, in install-
ments of $37,780 and $226,660 on July 15, 1973 and 1974, respectively.
Your interest in Casa Pacifica is subject to the terms of the Pur-
chase Money Trust Deed issued with the Cotton note.
Prior to May 31, 1973 you incurred and paid from your
personal funds $217,270 for improvements, furnishings and other costs
at Casa Pacifica as follows:
Description
Amount
Improvements and furnishings:
Kitchen remodeling
$ 30,440
Other remodeling costs
27,167
Painting
25,165
Swimming pool, including heater
14,950
Work on sewer system
13,318
Landscaping
7,804
Work on porch and fireplace
5,936
Driveway paving
1,146
Other costs
6,188
Furnishings
55,863
187,977
Acquisition costs:
Commission to realtor
$25,000
Geotechnical survey
4,293
29,293
Total
$217,270
AMOUNTS PAID FOR OPERATIONS OF THE RESIDENTIAL PROPERTIES
During the period from the respective dates of purchase
to May 31, 1973, you have paid from your personal funds certain
operating expenses, exclusive of interest, of your residences in
Key Biscayne, Florida and in San Clemente, California. The amounts
The President and Mrs. Nixon - 10
paid, after deducting $4,800 representing utilities and maintenance
costs of the golf facilities at San Clemente that were reimbursed by
The Golfing Friends of the President, were:
Real estate taxes
$ 72,298*
Utilities
31,175
Fire and casualty insurance
4,713
Household maintenance
59,104
$167,290
*This amount does not include $2,125 of
real estate taxes that were accrued
but were not paid at May 31, 1973.
OPINION
The amounts set forth above with respect to the purchase or
improvement of the residential properties are stated on the basis of
your cost. They do not include any amounts paid by the Government of
the United States or others in connection with these residences.
In our opinion, the information set forth above presents
fairly: (a) the purchase of your residential properties and the
sources of the funds used therefor; (b) the amounts paid by you (i)
with respect to the related obligations including interest, (ii) for
improvements and furnishings, and (iii) for operations of the resi-
dential properties, all through May 31, 1973; and (c) the balance of
those obligations outstanding at that date that are related to the
properties.
Very truly yours,
Coopers & Lybrond
Copy No. 4
of 8 copies
AGREEMENT OF TRUST
by and between
RICHARD M. NIXON
and
PATRICIA R. NIXON,
as Settlors
and
JOHN D. EHRLICHMAN,
as Trustee
Dated: August 14, 1972
MUDGE ROSE GUTHRIE & ALEXANDER
20 BROAD STREET, NEW YORK, NEW YORK
THIS AGREEMENT OF TRUST made the 14th day of August.
1972 by and between RICHARD M. NIXON and PATRICIA R. NIXON, as
Settlors and JOHN D. EHRLICHMAN, as Trustee,
WHEREAS, the Settlors desire, by this Agreement, to
create a revocable trust, to be known as "The Patricia R. Nixon
Trust", the principal thereof to consist of the property set
forth in Schedule A annexed hereto and made a part hereof, and
of such other property as may hereafter be delivered to the
Trustee or his successor or successors,
NOW, THEREFORE, THIS AGREEMENT OF TRUST WITNESSETH:
That the Settlors have granted, conveyed, assigned,
transferred, set over and delivered, and by these presents
do grant, convey, assign, transfer, set over and deliver unto
the Trustee (which term, whenever it is used in this Agreement,
shall be deemed to mean the original Trustee named above and
any additional or successor Trustee or Trustees at any time
acting hereunder, whether individual or institutional, unless
by express provision or necessary implication another meaning
is clearly intended), all the right, title and interest which
the Settlors now have in and to the property set forth in
Schedule A annexed hereto and made a part hereof, the receipt
of which property is hereby acknowledged by the Trustee,
2
TO HAVE AND TO HOLD the said property listed in
Schedule A annexed hereto and any additional property at any
time delivered to the Trustee pursuant to the terms of this
Agreement, all of which is sometimes hereinafter referred to
as the Primary Trust Fund, in trust, nevertheless, for the fol-
lowing uses and purposes and subject to the terms, conditions,
powers and agreements hereinafter set forth:
FIRST: (A) During the life of RICHARD M. NIXON, the
Trustee shall hold the Primary Trust Fund, without being under
any obligation to invest the same, and shall pay over or apply
so much or all of the net income, if any, and/or principal there-
from as RICHARD M. NIXON shall from time to time direct, and shall
accumulate the balance of any net income not directed to be paid
over or applied and add the same to the principal of the Primary
Trust Fund, upon the happening of which event such accumulated
income so added to such principal shall for all purposes become
and be a part thereof.
(B) Upon the death of RICHARD M. NIXON, if
PATRICIA R. NIXON shall then be living, the Trustee shall hold and
manage the Primary Trust Fund, which term shall be deemed to include
any property added thereto in accordance with the terms and provi-
sions of that certain Agreement of Trust made and executed the same
day as this Agreement of Trust by and between RICHARD M. NIXON and
3
PATRICIA R. NIXON, as Settlors, and RICHARD M. NIXON, as Trustee,
pursuant to which a trust, referred to in that Agreement of Trust
and hereafter in this Agreement as "The Family and Literary
Properties Trust", was created, and shall invest and reinvest
the Primary Trust Fund, other than any residential real property
being used by PATRICIA R. NIXON and held as part of the Primary
Trust Fund, shall collect the rents, if any, interest, dividends
and other income from the Primary Trust Fund and, after the pay-
ment of all lawful charges therefrom, shall dispose of the Primary
Trust Fund as follows:
(1) If any residential real property shall be held
as part of the Primary Trust Fund, then PATRICIA R. NIXON
shall have the absolute and unqualified power, at any time
and from time to time during the continuance of the trust
created hereunder, to direct the retention of such residen-
tial real property, together with all appurtenances, build-
ings and/or improvements thereon, or to direct the sale of
any such residential real property, appurtenances, build-
ings and/or improvements, or any part thereof, and, if she
so directs, the purchase of other residential real property
in replacement thereof. As to any residential real property
at any time held as part of the Primary Trust Fund, the
Trustee shall make the same available to PATRICIA R. NIXON
for her exclusive use, without requiring the payment of any
4
rent therefor, and shall pay, out of the income and, if
necessary or advisable, the principal of the Primary Trust
Fund, so much or all of any taxes or assessments levied on
such residential real property, appurtenances, buildings
and/or other improvements, any charges or expenses, whether
ordinary or extraordinary, as may be incurred in maintain-
ing or improving such residential real property, appurten-
ances, buildings and/or other improvements, and the cost of
insuring the same against loss, fire, theft and/or liability,
as PATRICIA R. NIXON shall direct. In no event shall the
Trustee be subjected to any liability for retaining or
selling any residential real property, appurtenances, build-
ings and/or improvements, or any part thereof held as part
of the Primary Trust Fund, or for paying, out of the income
and, if necessary, the principal of the Primary Trust Fund,
any costs or expenses relating to any such residential real
property, in accordance with directions from said PATRICIA
R. NIXON. Further, no person interested in the Primary
Trust Fund shall have any right to question any direction
relating to such residential real property made by PATRICIA
R. NIXON, and her determination to direct a retention or
sale of any such residential real property, appurtenances,
buildings and/or improvements, or any part thereof, or to
5
direct a purchase of replacement residential real property,
as provided herein, or to direct the payment of any costs
or expenses relating to any such residential real property,
shall be final, binding and conclusive upon all persons in-
terested in the trust created under this Agreement of Trust,
and the interests of all of such persons are hereby limited
accordingly.
(2) All of the net income from the Primary Trust Fund
remaining after the payments, if any, provided for in sub-
division (1) of this subparagraph (B) of this Article
FIRST, and so much or all of the principal thereof as the
Trustee shall deem advisable, shall be paid over or applied
to or for the benefit of PATRICIA R. NIXON for and during
the term of her life, in quarterly installments or at such
more frequent intervals as the Trustee shall determine.
(C) Upon the death of PATRICIA R. NIXON, she
having survived RICHARD M. NIXON, the Primary Trust Fund, which
term shall be deemed to include any property added thereto in ac-
cordance with the terms and provisions of the Agreement of Trust
under which The Family and Literary Properties Trust was created,
or so much thereof as then remains, shall be paid over, transferred
and delivered to and among such person or persons, corporation or
corporations, and/or institution or institutions (including,
but without limitation, the creditors of PATRICIA R. NIXON, her
6
estate, and the creditors of her estate), and in such shares,
estates and proportions, in trust or otherwise, and with or
without further powers of appointment in the appointees, as
PATRICIA R. NIXON shall direct in and by her Last Will and Tes-
tament duly admitted to probate or duly established. If
PATRICIA R. NIXON shall fail to exercise the general power of
appointment thus conferred upon her, or if her exercise thereof
shall be ineffective or invalid, or if she shall only partially
exercise said power of appointment, or if her exercise thereof
shall be partially ineffective or invalid, then the Primary
Trust Fund, or so much thereof as then remains and shall not
have been validly and effectively disposed of by PATRICIA R.
NIXON in exercise of said power of appointment or, if PATRICIA
R. NIXON shall not be living at the time of RICHARD M. NIXON's
death, then, upon the death of RICHARD M. NIXON or, if RICHARD
M. NIXON and PATRICIA R. NIXON shall die in or as the immediate
result of a common accident or disaster, then, upon the happen-
ing of such event and without regard to who may have survived
the other, the Primary Trust Fund, including any property added
thereto in accordance with the provisions of the Agreement of
Trust under which The Family and Literary Properties Trust was
created, shall be disposed of as follows:
(1) If the event causing the disposition of the
Primary Trust Fund shall be the death of PATRICIA R. NIXON,
7
she having survived RICHARD M. NIXON, the Trustee shall have
the power, in the Trustee's sole and uncontrolled discretion,
to pay, out of the Primary Trust Fund, before the division
of the same into any shares or parts, all debts, funeral,
administration and legal expenses of PATRICIA R. NIXON's
estate and all estate, transfer, inheritance or succession
taxes, whether federal or state or other, including any
interest and penalties assessed thereon, payable by reason
of the death of PATRICIA R. NIXON. In making any such
payment, the Trustee is authorized to rely upon a certifica-
tion from PATRICIA R. NIXON's Executor or Executors as to
the amounts to be paid without further inquiring into the
accuracy or correctness of any such certification, and
upon making any such payment, the Trustee shall be released
from any liability for the application of such funds.
(2) The balance of the Primary Trust Fund remaining
after the payments directed under subdivision (1) of this
subparagraph (C) of this Article FIRST, or the entire
Primary Trust Fund, if the event causing the disposition
of the Primary Trust Fund shall be the death of RICHARD M.
NIXON, or the death of RICHARD M. NIXON and PATRICIA R.
NIXON in or as the immodiate result of a common accident or
disaster, shall be divided into as many equal shares as
there shall be children of the Settlors then living, with
8
a further equal share for the issue, collectively, of any
child of the Settlors who shall theretofore have died
leaving issue who are then living, and such shares, as
so determined, shall be disposed of as follows:
(a) Each share set aside for a child of the
Settlors shall continue to be held in trust for the
benefit of such child and/or her issue in accordance
with all of the terms and provisions of subparagraph
(D) of this Article FIRST; and
(b) Each share set aside for the then living
issue, collectively, of any child of the Settlors who
shall theretofore have died leaving issue who shall
then be living shall be paid over, transferred and
delivered to such then living issue, to be divided
among such issue, per stirpes and not per capita,
provided, however, if any such share, or any part
thereof, shall thereupon become payable to any person
who shall then be under the age of twenty-five (25)
years, then such share or part shall not be paid
over to such person free of trust, but instead shall
continue to be held in trust for the benefit of such
person in accordance with all of the terms and provi-
sions of subparagraph (E) of this Article FIRST; or
if there shall be no issue of the Settlors then living, then
the same shall be paid over, transferred and delivered to THE
9
RICHARD M. NIXON FOUNDATION, for its general uses and purposes.
(D) Each share of the Primary Trust Fund set
aside for a child of the Settlors shall be held by the Trustee
as a separate trust for the benefit of such child, and the Trus-
tee shall manage, invest and reinvest the same, shall collect
the rents, dividends, interest and other income therefrom and,
after the payment of all lawful charges therefrom, shall pay
over or apply, to or for the benefit of any one or more members
of the class consisting of the child of the Settlors for whose
benefit such share was set aside and such of the issue of such
child of the Settlors as shall be living at the time each such
payment or application is made, so much or all ,of the net income
therefrom and/or principal thereof as the Trustee (other than any
person with a present or potential beneficial interest in such
separate trust, if such person shall at that time be acting as
a Trustee hereunder) shall, for any reason whatsoever, deem ad-
visable, proper or necessary, and shall accumulate the balance
of any of such net income not so paid over or applied and shall
add the same to the principal of such separate trust, whereupon
such accumulated income shall become a part of the principal
of such separate trust for all purposes. Any determination by
the Trustee of any separate trust held under this subparagraph
(D) of this Article FIRST to make or not to make any such pay-
ment or application of any part or all of the net income and/or
10
principal of such separate trust to or for the benefit of any
one or more members of the class of persons to or for whose
benefit the net income and/or principal of such separate trust
could be paid shall not impose any duty or obligation on such
Trustee to make any similar payment and/or application to or
for the benefit of any other member or members of the class of
persons to or for whose benefit such net income and/or principal
could be paid or on the Trustee of any other separate trust
held under this Agreement of Trust to make any similar payment
and/or application to or for the benefit of any one or more
members of the class of persons to or for whose benefit the net
income and/or principal of such other separate trust held here-
under could be paid, and such determination shall be final,
binding and conclusive upon all persons interested in such
separate trust or in any other separate trust held under this
Agreement. Upon the death of the child of the Settlors in whose
name a separate trust is being held under this subparagraph (D),
the principal of such separate trust, or so much thereof as
shall then remain, together with all accrued and/or accumu-
lated income thereon, shall be paid over, transferred and
delivered to and among such child's then living issue, to be
divided among such issue per stirpes and not per capita, or
if such child shall leave no issue surviving, then to and
11
among such issue of the Settlors as shall be living at the
time of such child's death, to be divided among such issue
per stirpes and not per capita, provided, however, that if any
share or part of the principal of said trust shall thereupon
become payable to (i) a child of the Settlors for whose benefit
a separate trust is then being administered under the provi-
sions of this subparagraph (D) of this Article FIRST or (ii)
any person, other than a child of the Settlors, who shall not
have attained the age of twenty-five (25) years, then such
share or part shall not be paid over, transferred and delivered
free of trust to such child of the Settlors or to such other
person, as the case may be, but shall instead, '(i) in the case
of any share payable to a child of the Settlors, be added to
the principal of the separate trust being administered for the
benefit of such child under this subparagraph (D), whereupon
the same shall become a part of the principal of such separate
trust for all purposes and shall thereafter be held, managed
and disposed of accordingly, or (ii) in the case of any share
or part payable to any person, other than a child of the Set-
tlors, who shall not have attained the age of twenty-five (25)
years, be held by the Trustee as a separate trust for the bene-
fit of such person and managed and disposed of in accordance
with all of the terms and provisions of subparagraph (E) of
12
this Article FIRST; or, if there shall be no issue of the Set-
tlors then living, then the same shall be paid over, transferred
and delivered to THE RICHARD M. NIXON FOUNDATION, for its general
uses and purposes.
(E) Each share or part of the Primary Trust
Fund or of any trust held under subparagraph (D) of this Article
FIRST which is directed to be held in trust for any person who
shall not have attained the age of twenty-five (25) years shall
be held by the Trustee, in trust, nevertheless, as a separate
trust for the benefit of such person, and the Trustee shall manage,
invest and reinvest the same, shall collect the rents, interest,
dividends and other income therefrom and, after payment of all
lawful charges therefrom, shall pay over or apply so much or all
of the net income and/or principal therefrom for the support,
maintenance and/or education of such person as the Trustee (other
than any person with a present or potential beneficial interest
in such separate trust, if such person shall at that time be
acting as a Trustee hereunder) shall determine, and shall ac-
cumulate the balance of any such income not so paid over or
applied and add the same to the principal of such trust, where-
upon the same shall be treated as principal for all of the
purposes of this Agreement of Trust.
Each separate trust held under the pro-
13
visions of this subparagraph (E) of this Article FIRST shall
terminate (i) upon the attainment of the age of twenty-five (25)
years by the person for whose benefit such trust was originally
set aside, (ii) upon the death of such person prior to his or
her having attained the age of twenty-five (25) years, or (iii)
upon the lapse of twenty-one (21) years after the death of
the last to die as between all issue of RICHARD M. NIXON living
at the time of his death, whichever event shall first occur and,
upon such termination, the principal of such trust, or so much
thereof as shall then remain, together with all accrued and/or
accumulated income thereon, shall be paid over, transferred and
delivered to the person for whose benefit such trust was set
aside, if such person shall then be living, or if such person
shall not then be living, then to such of the issue of such per-
son as shall then be living, to be divided among such issue per
stirpes and not per capita, or if there shall be no issue of
such person then living, then to the then living issue of such
person's nearest ancestor who shall have been a descendant of
the Settlors and who shall have issue then living, to be divided
among such issue per stirpes and not per capita, or if there
shall be no such issue then living, then to such issue of the
Settlors as shall then be living, to be divided among such issue
per stirpes and not per ca ita, provided, however, that if the
14
event causing the termination of such trust shall have been the
death of the person for whose benefit such trust was set aside,
and if any share or part of the principal of such trust shall
thereupon become payable to (i) a child of the Settlors for
whose benefit a separate trust is then being administered under
the provisions of subparagraph (D) of this Article FIRST, or
(ii) any person, other than a child of the Settlors, for whose
benefit a separate trust is then being administered under the
provisions of this subparagraph (E) of this Article FIRST, then
such share or part shall not be paid over, transferred and
delivered free of trust to such child of the Settlors, or to
such other person, as the case may be, but shall instead, (i)
in the case of any share payable to a child of the Settlors,
be added to the principal of the trust being held for the bene-
fit of such child and/or her issue under the provisions of sub-
paragraph (D) of this Article FIRST, thereafter to be held,
administered and disposed of as a part of such principal for
all purposes, or (ii) in the case of any share or part payable
to any person, other than a child of the Settlors, for whose
benefit a separate trust is then being administered under the
provisions of this subparagraph (E) of this Article FIRST, be
added to the principal of such separate trust then being held
for the benefit of such person under this subparagraph (E),
thereafter to be held, administered and disposed of as a part
15
of such principal for all purposes; or if there shall be no
issue of the Settlors then living, then the same shall be
paid over, transferred and delivered to THE RICHARD M. NIXON
FOUNDATION, for its general uses and purposes.
SECOND: The Settlors or either of them shall have
the right at any time and from time to time, by deed, assign-
ment or other conveyance executed during their lifetimes,
and/or by devise or bequest by his or her Last Will and Testa-
ment, or any Codicil thereto, duly admitted to probate or duly
established, to make contributions of cash, securities and/or
other property to any trust or trusts directed to be held under
the provisions of this Agreement of Trust. The Trustee shall
also accept additions of property to the principal of the trust
created hereunder made in accordance with the terms and provi-
sions of that certain Agreement of Trust made and executed the
same day as the date of execution of this Agreement of Trust by
and between RICHARD M. NIXON and PATRICIA R. NIXON, as Settlors
and RICHARD M. NIXON, as Trustee, pursuant to which a trust, re-
ferred to in that Agreement of Trust as The Family and Literary
Properties Trust, was created. Any other person may, with the
consent of the Trustee, at any time and from time to time, by
deed, assignment or other conveyance, and/or by devise or bequest
by his or her Last Will and Testament, or any Codicil thereto,
16
duly admitted to probate or duly established, make contributions
of cash, securities and/or other property to any trust or trusts
directed to be held under this Agreement of Trust.
THIRD: (A) Whenever, under any of the provisions of
this Agreement of Trust, the Trustee is authorized to pay over
or apply any portion of the income and/or principal of any
trust created hereunder to or for the benefit of any beneficiary
of such trust who shall at the time of such payment and/or ap-
plication be a minor, then, anything herein contained to the
contrary notwithstanding, the Trustee is hereby authorized, in
the Trustee's absolute discretion, to pay over such income and/or
principal to such minor, or to apply the same directly for the
benefit of such minor or to pay such income and/or principal
to such minor's parent, or to any adult person with whom such
minor may then be living, or to the guardian of such minor,
regardless of whether such guardian shall have qualified as the
guardian of such minor under the laws of the jurisdiction in
which the trust is being administered. The written receipt of
such minor, parent, guardian or other person for any amount so
paid, or evidence of the application of any amount by the
Trustee for the benefit of such minor, shall be an absolute
discharge to the Trustee in respect of the amount so paid or
applied.
17
(B) If any part of the principal of any
trust created by this Agreement of Trust shall at any time
become distributable or payable to any person who shall at
such time be a minor, the Trustee may, in the Trustee's abso-
lute and uncontrolled discretion, either pay over such prin-
cipal or any part thereof to the parent of such minor or to
any adult person with whom such minor shall then be living, or
to the guardian of the person or property of such minor, re-
gardless of whether such guardian shall have qualified as such
guardian under the laws of the jurisdiction in which the trust
is being administered, or retain and hold the same or the bal-
ance thereof as donee of a power during minority to manage
property vested in such minor, and, in such case, so much of
the principal and income therefrom as said Trustee shall deem
necessary or desirable may be applied by them from time to time
for the support, maintenance and education of such minor, and
any principal and/or income therefrom retained by the Trustee
shall be invested and reinvested and accumulated for the benefit
of such minor until he or she shall have attained majority, and
thereupon the entire fund shall be paid over to such person to
whom the same is distributable or payable as aforesaid, or, if
such person shall die before attaining majority, then the same
shall be paid over to such person's legal representatives. The
18
application of income or principal to the support, maintenance
or education of a minor as herein provided may be made either
directly by the Trustee or by payment of such income or prin-
cipal to the parent of such minor or to the guardian of the
person or property of such minor or to the person with whom
such minor may reside at the time of such payment. In holding
any principal or income for any minor pursuant to this provi-
sion, the Trustee shall have all the rights, powers, privileges,
duties, exemptions and discretions conferred under any of the
provisions of this Agreement of Trust upon the Trustee, whe-
ther the same be of management, investment, reinvestment or
otherwise. In making any payment to the parent or to the guard-
ian of such minor or to the person with whom such minor resides,
the Trustee shall not be required to obtain any bond or other
security, and the receipt of any one of said persons for such
payment to, on behalf of, or for the maintenance, support or
education of such minor, shall be a full and complete discharge
to the Trustee, who shall not be bound to see to the applica-
tion or use of any such payment.
FOURTH: In so far as it may be permissible by law so
to provide, no beneficiaries of any trust created under this
Agreement shall under any circumstances have any power of
alienation, either voluntary or involuntary, of any of the prop-
19
erty at any time constituting any part of said trust, or any
income or profits arising or to arise therefrom or any part
thereof, prior to the actual receipt thereof by such beneficiary;
nor shall any such beneficiary have any power to encumber the
principal of said trust or any part thereof, or to encumber
or anticipate the income and profits therefrom or any part
thereof; nor shall any such beneficiary have any control of
said income or profits, or any part thereof, until after the
actual receipt thereof by such beneficiary; and neither the
principal of said trust nor any income arising therefrom
shall ever at any time be subject to the claims of creditors
of any such beneficiary, or of the spouse, if any, of any such
beneficiary.
FIFTH: If any prior beneficiary and any subsequent
beneficiary of any trust created under this Agreement of Trust,
other than RICHARD M. NIXON and PATRICIA R. NIXON, shall die
in or as the immediate result of a common accident or disaster,
then, without regard as to who survived the other it shall be
deemed, for all purposes of this Agreement of Trust, that such
prior beneficiary survived, and any trust or trusts created
hereunder shall be held, administered and disposed of accordingly.
SIXTH: The Trustee at any time acting hereunder,
including any additional or successor Trustee or Trustees ap-
20
pointed under the provisions hereof, in addition to any power
conferred upon the Trustee under any other paragraph of this
Agreement of Trust and in addition to any general power or au-
thority which such Trustee would otherwise possess by law, are
hereby given full power and authority:
(1) To sell, either by private con-
tract or at public auction, grant options
in respect of, exchange, mortgage or lease
for any term of years, or otherwise dispose
of any or all of the trust funds, whether
real or personal, of whatsoever nature or
kind and wheresoever the same may be situ-
ated, for such consideration, whether for
cash or upon credit or partly for cash and
partly upon credit, and upon such other
terms and conditions as deemed proper, and
to make, execute, acknowledge and deliver
any and all deeds, leases, assignments,
mortgages or other instruments, and to do
all acts deemed necessary and proper to
effectuate or in connection with any such
disposition of the trust funds; and in no
case shall any purchaser of property from
the Trustee or other persons dealing with
the Trustee be bound to see to the appli-
cation of the purchase money or other prop-
erty or fund under any of the provisions
of this Agreement;
(2) To manage, operate, repair, improve,
mortgage or lease (whether for a period longer
or shorter than ten years and whether expiring
before or after the termination of any trust
created hereunder) any real estate, whether
improved or unimproved, forming a part of the
trust funds;
(3) To adjust, compromise, compound and
settle any and all claims, debts or obliga-
tions due to or from the trust funds to such
extent and upon such terms and conditions as
21
the Trustee may deem advisable without first
bringing against the claimant or compelling the
claimant to bring any action at law, suit in
equity, or any other legal proceeding to es-
tablish any such claims, and to reduce the rate
of interest on, to extend or otherwise modify,
or to foreclose upon default or otherwise en-
force or to abstain from the enforcement of any
such right, claim, debt or obligation, and
to abandon, if deemed advisable, any property,
real or personal, constituting a part of the
trust funds; to execute and deliver to the
federal or any state or other taxing authori-
ties instruments waiving any statutory or
other time limitations as to any tax matters
in any way relating to the trust funds; and to
execute all agreements, deeds, releases or
other documents necessary or proper in connec-
tion with any adjustment, compromise, compound-
ing, settlement or waiver, and said Trustee
shall not be held responsible for any losses
which may occur to the trust funds by reason
thereof;
(4) To submit to final arbitration any
matter of difference with others;
(5) To borrow money upon the security of
the trust funds or any part thereof for any pur-
pose or purposes deemed necessary or proper for
the management thereof, including, but without
limitation, the purchase of securities or other
property for the account of the trust; and
this power to borrow money shall include
the power to borrow from any corporate Trus-
tee at any time acting hereunder, on terms
no less favorable as to security, interest or
other matters related to such borrowing, than
those made available by it to borrowers gen-
erally who or which have credit standing com-
parable to that of the said trust, and such cor-
porate Trustee shall in no event be penalized
in any way on account of such borrowing,
whether by reason of self-dealing or otherwise;
and it is hereby provided that the said Trus-
tee shall, notwithstanding any rule of law
22
to the contrary, have the power to maintain a
margin account or accounts and to make such
pledges of and other undertakings with respect
to assets of the trust as shall in the judgment
of the Trustee be advisable in connection
with the establishment and maintenance of such
account or accounts;
(6) To continue the trust funds invested in
such stocks, bonds or other securities and prop-
erty delivered to the Trustee upon the execution
of this Agreement or hereafter acquired from any
additions to the trust funds, without any require-
ment for diversification and including the carry-
ing on of any business, joint venture or enter-
prise in which the funds represented by such stocks,
bonds and other securities or property may be
invested at the time the same are received;
(7) To invest and reinvest all or any
part of the trust funds in such manner and
in such securities and other property, real
or personal, as deemed advisable, without
being limited in such investments to that
property or those securities which otherwise
would alone be lawful for trustees' invest-
ments under any laws applicable thereto, and
without being required to diversify such
investments in any manner whatsoever; with-
out in any way limiting the power of invest-
ment and reinvestment herein conferred upon
the Trustee, the Settlors direct that the
foregoing provisions should be construed to
include a power to invest in securities of any
kind of corporation commonly known as an in-
vestment trust company or mutual fund;
(8) To vote in person or by proxy any
shares of stock in any corporation constitut-
ing a part of the trust funds at any meeting
of the stockholders of such corporation, to
deposit any stocks, bonds or other securities
with any committee under any plan of reorgan-
ization, recapitalization or readjustment of
any corporation, and generally, as to any
shares of stock, bonds, scrip or other secur-
23
ities which may at any time form a part of
the trust funds, to enjoy the same powers under
ordinary conditions and also in the case of a
merger, lease, consolidation or reorganization,
readjustment or recapitalization, sale of assets
or other corporate action as might be exercised
by an individual owner who is under no trust
obligation, including the acceptance and holding
thereafter of any securities which may be issued
as a result of such corporate action;
(9) To vote for an individual Trustee, or
for any officer or employee of a corporate Trus-
tee, or for either of them to be a director or
an officer of any corporation in which the
trust funds may be interested, or to be a
member of any committee related in any way to
such corporation, and any Trustee or officer
or employee of any corporate Trustee may serve
as such director or officer or committee member,
and receive proper remuneration for such
services, and may exercise free and untrammelled
discretion with respect to all matters concerning
the affairs of such corporation, and no Trustee
or officer or employee of a corporate Trustee
so acting as a director or officer or as a
member of such committee shall be accountable
for his acts as such to any person interested
in the trust funds;
(10) To accept or substitute any stocks,
bonds, scrip or other securities in exchange for
any securities which may at any time constitute
any part of the trust funds, and to exercise any
powers incidental to any such acceptance or sub-
stitution; to pay all assessments, subscriptions
or other sums of money for the protection of
the Trustee's interests as holder of any stocks,
bonds or other securities, and to exercise any
option contained in any stocks, bonds or other
securities for the conversion of the same
into other securities, and thereafter to
hold any securities thus received;
(11) To cause to be registered in the
24
name of the Trustee hereunder any securities
which may from time to time comprise the trust
funds, or to take and keep them unregistered,
and to retain them or any part thereof in such
condition that they will pass by delivery;
(12) To pay out of principal or income any
and all claims or demands which properly may
become payable from time to time against the
trust funds, and the Trustee's allocation of
any such charges against principal or income
or partly against principal and partly against
income shall be final and conclusive and binding
upon all persons interested in the trust funds,
and the Trustee's discretion in making the same
shall not be questioned;
(13) In case of securities taken or pur-
chased at a premium, not to be bound to set
apart any portion of the income as a sinking
fund to restore or absorb such premium, but
the same may be done if deemed desirable;
(14) With respect to any and all stocks
and bonds at any time delivered to the Trus-
tee by the Settlors to treat as income any
dividends (except liquidating dividends) de-
clared but not yet paid on any such stocks and
any and all interest accrued on any bonds, at
the time of delivery of such stocks, bonds or
other securities to the Trustee by the Settlors;
and during the term of administration of each
trust created hereunder, to treat as income any
and all cash dividends (whether of the kind
sometimes described as "ordinary dividends" or
"extra-ordinary dividends") except liquidating
dividends, and to treat as principal (a) all
liquidating dividends and (b) all distributions
made in the shares of the corporation making
the same, whether in the form of a stock split
or a stock dividend or otherwise, and (c) all
warrants, and (d) all dividends or distribu-
tions made in the stock of a corporation other
than the one declaring the same, and (e) any
and all distributions made other than from
ordinary income by any investment trust company,
25
mutual fund or real estate investment trust;
and in connection therewith, to determine, in
the Trustee's discretion, whether any cash
dividend is or is not a liquidating dividend;
and to retain or distribute all such dividends
accordingly as herein provided;
(15) To allocate between principal and
income any and all rents from leaseholds and
any dividends or other distributions in respect
of any stock of oil, gas, mining or lumber
companies, and any and all distributions in
respect of the kind of property ordinarily known
as a wasting investment, constituting a part of
the trust fund at any time, in such manner
that there shall be allocated to income only
ordinary income and there shall be allocated
to principal any amounts representing deprecia-
tion, depletion, reserve, or other adjustments
which are necessary or proper to insure the
preservation as principal of the capital in-
vested in such stock or property;
(16) To effect the division of the prin-
cipal of the trust funds or to distribute the
same either in kind or in money or partly in
kind and partly in money, and for the purpose
of such allotment the judgment of the Trustee
concerning the propriety thereof and the form
of such division or distribution and the rela-
tive values for the purpose of such division or
aistribution of the securities or the real or
personal property so allotted shall be binding
and conclusive on all persons interested under
this Agreement;
(17) To delegate the power and discretions,
or any of them, to any one or more of the other
Trustee, with further power to revoke any such
delegations, and further, to appoint from time
to time, in the Trustee's discretion, an agent
or agents for the purpose of performing any act
which the Trustee is authorized, empowered or
directed to do, whether or not such act may re-
quire discretion on the part of such agent or
agents, and the acts of any such duly appointed
26
agent or agents shall in all respects be as lawful
and binding upon the trusts as if performed by the
Trustee and the Trustee shall not be personally
liable to any beneficiary hereunder or to any
other person by reason of any act done or omitted
by the agent or agents so appointed, whether such
act required discretion on the part of such agent
or agents or involved a delegation of discretion
by the Trustee;
(18) To commingle the assets of all or
any of the foregoing trust funds the one with
the other so that any one of said trust funds
may consist in whole or in part of an undivided
share or shares in assets, the remaining un-
divided share or shares in which constitute the
whole or a part of any other trust fund, and
to substitute at any time and from time to time
any investment or asset constituting a part or
the whole of any trust fund for any investment
or asset constituting a part or the whole of
any other trust fund;
(19) So long as there shall be no corpo-
rate Trustee acting under this Agreement, to
employ or retain any bank, corporation or other
institution to act as custodian of the assets
of the trust created hereunder, and to permit
said bank, corporation or institution to hold
said assets in its name, or in the name of its
nominee, and to pay to said bank, corporation
and/or institution its charges for acting as
such custodian, and to charge the same against
principal or income as the Trustee in the Trus-
tee's discretion, shall determine, and the
Trustee shall be entitled to reimbursement for
the same and for such necessary and proper
charges and expenses as may be incurred in con-
nection therewith. Any such bank, corporation
or institution which acts as such custodian
shall not be liable or responsible in any way to
any person interested in the trust created under
this Agreement, for any act performed by it in
accordance with the instructions of the Trustee,
or of any of the Trustee's duly appointed agents;
and
27
(20) Without in any way affecting the
right of any Trustee to act as such fiduciary,
or to receive compensation for so acting, to
employ counsel, investment advisers, brokers,
accountants, clerks and agents, and any firm of
which any individual Trustee may be a partner or
with which any individual Trustee may be associated
and any corporation of which any individual Trus-
tee may be a director, officer, stockholder, em-
ployee or in any way interested, may be so employed
by the Trustee for such purpose, and to pay to any
such firm or corporation such fees, commissions,
compensation and/or remuneration for services
rendered from principal or income as the Trustee
may deem proper; and to purchase and/or sell for
the account of any trust under this Agreement,
any real and/or personal property, stocks,
bonds and other securities or property from,
to or through any firm or corporation acting as
a principal without regard to the fact that
such corporation is a Trustee or that an in-
dividual Trustee may be a partner of such firm
or may be associated with such firm, or may be
a director, officer, stockholder, employee of
or in any way interested in such corporation,
and, in the case of any such sale or purchase,
to accept such sales price, in the case of a
sale, or to pay such purchase price, in the
case of a purchase, as the Trustee may deem
proper.
SEVENTH: A majority of the Trustees at any time act-
ing hereunder or, if there shall only be one Trustee then act-
ing hereunder, such sole Trustee, shall have the power at any
time and from time to time (i) to appoint an individual or
individuals or a bank or trust company or different individuals
or banks or trust companies as an additional or successor Trustee
or as additional or successor Trustees of the Primary Trust Fund
or of any separate trust or trusts directed to be held hereunder,
28
such appointment or appointments to take effect immediately or
upon the happening of any future contingency as shall be speci-
fied in the instrument of appointment, provided that in no
event shall there be more than three Trustees nor more than
one bank or trust company acting as Trustee of any trust di-
rected to be held hereunder, (ii) to remove any Trustee or
Trustees at any time acting hereunder, and (iii) to revoke
any contingent appointment of any additional or successor
Trustee made in accordance with the provisions of this Article
SEVENTH. RICHARD M. NIXON, regardless of whether or not he may
be acting as a Trustee hereunder, shall have the power to remove
any Trustee or Trustees at any time acting hereunder, to revoke
any contingent appointment of a successor or an additional Trustee
made by a majority of the Trustees or the sole Trustee acting
hereunder, and, in his discretion, to appoint a successor Trustee
or Trustees to act in the place and stead of the Trustee or Trus-
tees so removed or whose contingent appointment has been revoked,
or an additional Trustee or additional Trustees to act hereunder.
All instruments of appointment or removal
of a successor or additional Trustee or of successor or addi-
tional Trustees or of revocation of a contingent appointment
under the provisions of this Article SEVENTH shall be in writing
and shall take effect at the time therein specified. Each suc-
cessor or additional Trustee named herein or appointed hereunder
29
shall accept his, her or its appointment by an instrument in writ-
ing agreeing to perform the duties of said office and to be bound
by all of the terms of this Agreement of Trust. Any successor or
additional Trustee appointed pursuant to this Article SEVENTH
shall have all of the rights, powers, privileges, duties, exemp-
tions and discretions conferred upon the original Trustee under
any of the provisions of this Agreement of Trust.
EIGHTH: No Trustee acting under this Agreement of
Trust, whether named herein or appointed pursuant to the pro-
visions hereof, shall be required to give or file any bond or
other security for the faithful performance of his, her or its
duties as such Trustee in any jurisdiction whatsoever.
NINTH: During RICHARD M. NIXON's life, the original
Trustee named in this Agreement of Trust shall not be entitled
to receive any commissions and/or compensation for acting as a
Trustee hereunder. From and after RICHARD M. NIXON's death,
said original Trustee, if he shall still be acting as a Trustee
hereunder, shall be entitled to receive such commissions or
compensation as shall be allowable by statute or custom to a
Trustee of an inter vivos trust under the law of the State of
California, as the same shall from time to time be in force and
effect, and at the times and intervals provided by statute or
custom. Any additional or successor Trustee appointed pursuant
30
to the provisions of Article SEVENTH of this Agreement shall be
entitled to receive such commissions or compensation as shall
be specified in the instrument appointing such successor or
additional Trustee.
TENTH: No Trustee at any time acting hereunder shall
be responsible for any error of judgment or mistake of fact or
law, and any such Trustee shall be fully protected also for any
action taken in good faith, in accordance with the advice of
counsel, or in reliance thereon. NO Trustee acting hereunder
shall be responsible for the act, default or omission of any
other Trustee, nor for the default or misconduct of any agent
or attorney appointed by any Trustee (except that any bank or
institutional Trustee shall be liable for the default or mis-
conduct of its own agents, servants and attorneys). Each
Trustee shall be liable only for his, her or its own wilful
misconduct or gross negligence.
ELEVENTH: Any Trustee acting hereunder may resign
and be discharged from the trusts and obligations hereunder by
giving written notice, duly acknowledged, of his, her or its
resignation to RICHARD M. NIXON, if he shall then be living,
and to the other Trustee or Trustees then acting with such
resigning Trustee or Trustees of any trust or trusts created
31
hereunder, or if there be no such Trustee then acting hereunder,
to the income beneficiary or beneficiaries of the trust or trusts
of which such resigning Trustee is acting as a Trustee hereunder,
and if any of such income beneficiaries be a minor, then to the
guardian of such minor, or if there be no such guardian, to the
parent of such minor, or if there be no such parent, then to the
person with whom such minor resides.
TWELFTH: An adopted child shall be deemed to be a
child of such child's adopting, or natural, parent or parents
in determining under any provision of this Agreement of Trust
the persons who constitute the children, issue or descendants
of the Settlor or any other person.
THIRTEENTH: The original Trustee, and any successor
Trustee or Trustees at any time acting hereunder, may from
time to time and upon the termination of any of the separate
trust or trusts of which he, she or it is a Trustee, or upon
any division of the principal of the Primary Trust Fund or any
separate trust held hereunder, or upon his, her or its resigna-
tion or removal, render an account of his, her or its proceed-
ings (or the legal representative of any deceased Trustee may
render an account of the proceedings of his, her or its decedent)
from the date of the last account to the date of said account or
32
the termination or division of such trust or of such resigna-
tion, removal or death. In lieu of a judicial accounting,
such account may be rendered (1) if the trust accounted for
has terminated, and the principal thereof is payable free of
trust, to the person or persons then entitled to receive distri-
bution of the remainder of the trust fund, (2) if the trust
accounted for has terminated, but the principal thereof is to be
continued in trust or held as part of any other trust or trusts
created hereunder, to the person or persons to whom the income
from such other trust or trusts is required to be distributed,
and (3) if the trust accounted for has not terminated, to the
person or persons to whom the income from such trust may then be
distributed; and if said account is approved in writing by such
person or persons, or if any of them be an infant, by the guard-
ian of said infant's property, or if there be no such guardian,
by one of said infant's parents, or if there be no such parent,
by the person with whom said infant resides, or if any of them
be an incompetent, by the guardian or committee of said incom-
petent's property, such approval shall be final, binding and
conclusive upon all persons who may then or thereafter have an
interest in the trust accounted for.
FOURTEENTH: During RICHARD M. NIXON's life, the Settlors,
acting jointly, and after the death of PATRICIA R. NIXON, RICHARD
M. NIXON alone, shall have the right at any time and from time to
33
time to revoke, alter, amend or otherwise change this Agreement
of Trust or any of the provisions hereof, to substitute any
assets or properties for any of the assets which may at any time
form a part of any trust fund hereunder, and to withdraw all or
any part of such assets, and to make such other changes with
respect to this Agreement of Trust or any trust fund hereunder
as he may desire. Except as aforesaid, this Agreement of Trust
and the trusts created hereunder shall be irrevocable.
FIFTEENTH: The Settlors are domiciled in the State of
California. Accordingly, all questions pertaining to the con-
struction, regulation, validity and effect of this Agreement of
Trust and/or of the trust created hereunder shall, during the
entire term thereof, be determined in accordance with the law
of the State of California.
SIXTEENTH: Should any provision of this Agreement of
Trust be or become invalid or unenforceable, the remaining pro-
visions hereof shall be and shall continue to be fully effective
and enforceable.
SEVENTEENTH: The Trustee, by joining in the execution
of this Agreement of Trust, signifies his acceptance of the
trust.
IN WITNESS WHEREOF, the parties hereto have hereunto
34
set their hands and seals as Settlors and Trustee on the
day and year first above written.
Richard M. Nixon, Settlor
Fatricia [L.S.]
Patricia R. Nixon, Settlor
[L.S.]
STATE OF
)
COUNTY
OF of Sohumbia
: SS.:
)
On the 11/th day of August
, 1972, before me
personally appeared RICHARD M. NIXON, PATRICIA R. NIXON and
JOHN D. EHRLICHMAN, to me known and known to me to be the
persons described in and who executed the foregoing Agreement
of Trust, and they duly acknowledged to me that they executed
the same.
Notary Public
by
Commission Expires May 31, 1973
SCHEDULE A
Attached to and made a part of that certain
Agreement of Trust made and executed the 64th day of
Ow
Cheques
,
1972, at Trastengton H.
by and between RICHARD M. NIXON and PATRICIA R. NIXON,
as Settlors, and JOHN D. EHRLICHMAN, as Trustee.
Cask - Ten ($100/100
)
Richard N. Nixon, Settlor
Tatries R. nufar [L.S.]
Patricia R. Nixon, Settlor
[L.S.]
John D. Ehrlichman, Trustee