Existing Arrangements with Supporting Organizations Prior to August 17, 2006

(1) Supporting Organization Binding Written Contract - Any payment made

pursuant to a written contract that was binding on August 17, 2006, won’t be treated as an excess benefit transaction under Section 4958(c)(3), provided that:

a. Such contract was binding at all times after August 17, 2006, and before

payment is made,

b. The contract isn’t modified during such period, and

c. The payment under the contract is made on or before August 17, 2007.

(2) Supporting Organization, Other Arrangements - On August 17, 2006, with

respect to any arrangement not governed by a binding written contract involving an existing employment relationship or other legal obligation in effect, the IRS won’t consider any payment pursuant to such arrangement as an excess benefit transaction under Section 4958(c)(3) provided that:

a. The terms of such arrangement aren’t modified after August 17, 2006,

b. Any services are performed, and any goods are delivered as required by the

arrangement no later than December 31, 2006, and

c. The payment is made no later than August 17, 2007.

(3) Termination of the contract or arrangement described above doesn’t constitute a

modification for this purpose. See Notice 2006-109, 2006-2 C.B. 1121, 2006-51 I.R.B. 1121 December 4, 2006.