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SECTION 457 CUSTODIAL ACCOUNT AGREEMENT with WELLS FARGO BANK, N.A. THIS SECTION 457 CUSTODIAL ACCOUNT AGREEMENT is made by and between the City of Santa Ana (herein "Employer "), and Wells Fargo Bank, National Association (herein "Custodian"). WHEREAS, Employer maintains an eligible deferred compensation plan(s) (herein the "Plan(s) ") under section 457 of the Internal Revenue Code. WHEREAS, Employer desires to set aside Plan(s) assets to be held in a funded arrangement under section 457(g) of the Internal Revenue Code maintained for the exclusive benefit of Plan(s) participants and their beneficiaries. WHEREAS, section 457(g)(3) of the Internal Revenue Code provides that custodial accounts described in section 401(f) of the Internal Revenue Code shall be treated as trusts pursuant to that section. WIIEREAS, Employer desires to engage the services of the Custodian to hold all assets and income of the Plan(s) in a custodial account for the exclusive benefit of participants and their beneficiaries, as deemed in section 401(f) of the Internal Revenue Code. WHEREAS, the Custodian is willing to act as custodian and deemed trustee of the Plan(s) as set forth in section 457(8)(3) of the Internal Revenue Code to provide these services for the Plan(s) on the condition that Employer has entered or is entering into a service agreement with Great -West whereby Great- West will provide recordkeeping services for all Plan(s) assets held pursuant to this Agreement. NOW, THEREFORE, be it resolved, that the Employer hereby appoints Wells Fargo Bank, National Association, and Wells Fargo Bank, National Association hereby accepts its appointment as Custodian of certain assets of the Plan. The parties also hereto agree as follows: 1. Establishment of Custodial Account. a. In order to carry out the purposes of the Piau(s), Employer hereby creates slid establishes a custodial account (herein the "Custodial Account "). The Custodian accepts the Custodial Account and agrees to act as Custodian hereunder, but only on the terms and conditions set forth in this Agreement. Subject to the tennis raid conditions of this Agreement, all right, title and interest in and to the Custodial Account shall be vested exclusively in the Custodian. b. The Custodial Account shall include only those assets that the Custodian accepts. Only assets actually received by the Custodian will become part of the Custodial Account. The Employer acknowledges and agrees that it is responsible for effectuating the transfer of ally Plan(s) assets to be held in the Custodial Account to Custodian. C. The Custodial Account established hereunder is intended to satisfy the requirements of section 457(g)(3) of the Internal Revenue Code, and to be treated as a trust solely for purposes of applicable tax laws under piles similar to the rules under section 401(f) as contemplated by that section. In no event shall the Custodial Account be treated as a trust for purposes of state law. Notwithstanding anything herein to the contrary, it shall be impossible, prior to the satisfaction of all liabilities with respect to The employees and their