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Home My WebLink About00-02123 \(l . JUL 2 7 2004;- NANCY AMIS, formerly known as Nancy A. Reed, PlaintifflRespondent v. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CNIL ACTION - LAW MICHAEL D. REED, DefendantlPetitioner No. 2000-2123 Civil Term In Divorce ORDER OF COURT AND NOW, this # day of ~, 2004, upon review of the foregoing Petition for Reduction in Payment of Alimony, a hearing is scheduled for the ;;q-b. day of ~oI1n11J..U.,.. ,2004, at C\..OO o'clock --1L-.m. in Court Room No. Cl-- of the Cumberland County Court House, One Courthouse Square, Carlisle, Pennsylvania. J. \ -, ,- ~ . '.. ~ =~" -. . < > . ~,; . w- ."-,,,'.'"~-~'>"" ~,' '~"I'9-"'" ~,""",",'{'- ,._~" '-"'M'''''''''''''lIIUt1JIDIt~'tii.I(_ . ALED-OFRCE OF THE PROTHONOTARY 2UO~ JUL 30 PM I: 30 CUfvj3~F'lAD COUNTY PENNSYL\~l\~jti.\ ri. ft t :~t , '< ~ " ~,.~. .' -~- .,"" _~" _ ','" " _ . ,,,",=. __.._/ilo_ :_"J,~""~",~~" NANCY AMIS, formerly known as Nancy A. Reed, Plaintiffi'Respondent v. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW MICHAEL D. REED, DefendantlPetitioner No, 2000-2123 Civil Term In Divorce PETITION FOR REDUCTION IN PAYMENT OF ALIMONY Now comes the Petitioner, Michael D. Reed, through his counsel James, Smith, Dietterick & Counelly and petitions this Court for a reduction in the payment of alimony pursuant to the Court's Order dated July 17, 2003, in support of which he avers as follows: 1. The Petitioner is Michael D. Reed, Defendant in the above captioned action. 2. The Respondent is Nancy Amis, formerly known as Nancy A. Reed, Plaintiff in the above-captioned action. 3. Michael D. Reed and Nancy Amis entered into a Property Settlement Agreement dated May 12, 2003, which included a provision for the payment of alimony by husband to wife, including certain conditions which could result in the reduction of such payments by reason of increases in wife's gross income over that which was anticipated by the parties. A true and correct copy of the Property Settlement Agreement is attached hereto as Exhibit "A" and incorporated herein by reference as if fully set forth. 4. The parties obtained a Decree in Divorce from this Court dated May 29, 2003. 5. On July 17, 2003, this Court entered an Order for payment of alimony based upon the stipulation ofthe parties through their counsel. A true and correct copy of the Court's Order I I , i'_,~ --" ~,~ ~I ~ ,- (including the stipulation) is attached hereto as Exhibit "B" and incorporated herein by reference as if fully set forth. 6. Paragraph (e) of the Court's Order for payment of alimony reads as follows: The alimony payments set in this Order were based upon an estimated earning capacity of $20,000.00 per year for Wife. In the event that Wife's actual gross income exceeds $40,000.00 in any calendar year during the duration of the alimony payments, Husband's alimony obligation shall be reduced by one-half of any amounts by which Wife's income exceeds $40,000.00. This reduction shall apply in the calendar year(s) following the calendar year(s) Wife's gross income exceeds $40,000.00. Wife agrees to provide a copy of her Federal tax return to Husband annually on or before May 1 of each calendar year during the duration of the alimony payments. 7. On or about June 22, 2004, Nancy Amis, after repeated requests, finally provided a copy of her 2003 Federal income tax return. Included in that return is information regarding the sale of the former marital residence of the parties. 8. On or about August 8, 2003 Nancy Amis sold and transferred the house at 100 Mooreland Avenue in Carlisle, Pennsylvania which had served as the marital residence and which, pursuant to the terms of the Property Settlement Agreement between the parties, had been transferred to her at or around the time of the divorce in May, 2003. The house was sold at a price of$338,000.00. A true and correct copy of a statement of value filed with the Recorder of Deeds Office of Cumberland County with respect to that transaction is attached hereto as Exhibit "C" and incorporated herein by reference as if fully set forth. 9. The parties had purchased the house at 100 Mooreland Avenue for $205,000.00 in July 1997. 10. During the negotiations of the Property Settlement Agreement, the parties estimated the market value of the house in those negotiations to be approximately $229,000.00. 2 - i ..~..,"".""..", -I" e.. '.' _.""_,'."'._~!_"~' , ,,.,,"= ';"'~~~.,i ",,".' , --~'-'" _"'~'I'" ., ~. 11. Paragraph 19 of the Property Settlement Agreement between the parties contained a mutual representation that the parties had made full disclosure ofthe assets and income and financial information relevant to the property settlement. 12. Upon information and belief, Nancy Amis had information unavailable to Michael D. Reed regarding the value of the house at 100 Mooreland Avenue which she did not disclose to Michael D. Reed at or before the date of execution of the Property Settlement Agreement on May 12, 2003. 13. The proceeds of the sale ofthe house at 100 Mooreland Avenue which Nancy Amis retained represents at least $109,000.00 of actual gross income to her (being the difference between the market value negotiated in the Property Settlement Agreement and the actual sale price). 14. Because of the significant proceeds to Nancy Amis over and above the value used in negotiations for the Property Settlement Agreement, it is alleged and therefore averred that Nancy Amis had an actual gross income in addition to any income reported on her 2003 tax return of$109,000.00 as set forth in Paragraph 13 hereof. Accordingly, Michael D. Reed would be entitled to a reduction in the amount of at least $34,500.00 in his alimony obligation for the year 2004. 15. Pursuant to paragraph lO(a) of the Property Settlement Agreement and paragraph (a) of the Court's Order for payment of alimony, Michael D. Reed has paid the amount of $2,463.00 per month in alimony to Nancy Amis in 2004 and has continued such payments through and including the date ofthe filing of this petition. 3 ':" ,:~:I '~"~,'<:'~'--- .. .-";7'-'-1 - ,.. '-'-""~''"~''"~~~' '"1" - ,. -" -=,- .', ."1.. .. "~ ,~ 16. Michael D. Reed is entitled to an immediate reduction of payment of alimony to zero dollars for the remainder of 2004 and a reduction in 2005 of such additional amounts as may be appropriate based upon a final review of Nancy Amis's tax return for 2003, all in addition to any reduction which Michael D. Reed may be entitled to with respect to any income earned by Nancy Amis in 2004. WHEREFORE, Petitioner Michael D. Reed respectfully requests this Court to enter an Order reducing his alimony obligation to zero dollars for the remainder of 2004 and reducing his alimony obligation for 2005 in an amount appropriate to reflect the appropriate amount of credit for actual gross income earned by Nancy Amis in 2003 over and above $40,000.00, together with such other remedies as this Court shall deem just and appropriate. Respectfully submitted, JAMES, SMITH, DIETTERICK & CONNELLY Date: 1-J,~-(Jlf By: lly, Jr., Esquire 1 4 i e Av ue ' Humme sown, P A 17036 (717) 533-3280 PA J.D. No. 15615 Attorney for Petitioner Michael D. Reed 4 t' ' '-". , ;':0i,,~:<~,,"'I" c",'" ~^,. "~"'," "'i" :,'C'" " ",H~_ ~, " , .' -, , ,,"",' "",~I ."- I, ""'" ", ,,' --~ .. ~, " -~-'''"- r",~, ".' ",_ ~'_" , , -. ',"''f''ff2;o'' ,."~(~" ",?'!%'_'J"" .I;".,,,,~. ~, ,~ R . 'W~,-"-' I, - "llUIMI!IIUI\~'IQIII~_"":,, _~_",!,_~ VERIFICA TION I verify that the statements made in this Pleading are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unswom falsification to authorities. Date: '7 - ~ J. -/)If )?;,J// d) e-r :'1' ~--- '-',",,,-,' ';"I--:"'~--- ~',,-'- ->'~',. ~-",,~,~""- -,~'- " " . '~I ~,. .~->. , ,'-- , i , II '" '" ,,,' "",,,',",' ,"',q",y....' , - ~~~ ,~" .~'~'- ~. u~'-',"'-; > "".. "..I~_.;,.""'''~ "~ '" -1- , ;_'_'_"~_""'~)"_ , ,Y _M'-"<'~""_:''F,;:."I?''~~~~'"'l-''1',,l), "Il!l'lIIlIT!IIlI:lIl!fll!IM~Z'I. " .""r=, ~r ,'''~''''" ,t,_.lJ"~~ EXHIBIT "A" , .~,",o>", '-",<z'~I'l':7-,,~:" ,,' \ "',~.~,',-O:'". r_'":7' .--~,- , ~ '"",''''""1' ",~ -' -"!'-"" ~~- " I' p ~ - L H 11',1, 1 I I i! Ii Ii II II I i PROPERTY SETTLEMENT AGREEMENT f2~ day of ('1 a.! i 2003, THIS AGREEMENT, made this is by and between: MICHAEL D. REED, of 1419 Holly Pike in Carlisle, Pennsylvania, hereinafter referred to as "Husband"; and I NANCY AMIS REED, of 100 Mooreland Avenue in Carlisle, Pennsylvania, hereinafter referred to as "Wife." II ,I Ii " II Ii I: " " ii Ii Ii " II Ii. Ii Ii II Ii II 'I Ii ,I Ii Ii Ii !! 11 I' Ii I! if Ii Ii ii " II WITNESSETH: WHEREAS, the parties hereto are Husband and Wife, having been married on 9 January 1982 and are the natural parents of two children: Miller D. Reed, born 22 September 1982 and Peter T. Reed, born 19 August 1984 (hereinafter referred to as "children"); and WHEREAS, certain difficulties have arisen between the parties hereto which have made them desirous of living separate and apart from one another and Wife has initiated an action in divorce filed to No. 2000-2123 Civil Term before the Court of Common Pleas of Cumberland County, Pennsylvania; WHEREAS, the parties hereto, Wife being represented by Samuel L. Andes, Esquire, and Husband by John J. Connelly, Jr., Esquire, have each exchanged full and complete information as to the property, assets, and liabilities owned and owed by each and have disclosed to each other and to their respective attorneys full information as to the financial status of both parties hereto; and WHEREAS, both parties represent and acknowledge that they are legally competent to enter into this agreement and do so knowingly; and WHEREAS, the parties hereto have mutually entered into an agreement for the division of their assets, the provision for their children and for their rights and responsibilities in and toward such children, the provision for the liabilities they owe, and provision for the resolution of their mutual differences, after both parties have had full and ample opportunity to consult with their respective attorneys, and the parties now wish to have that agreement reduced to writing, II " II II Ii II II i: Page 1 of 15 -.-. -I ;o"'"""'r'"'1 " Ii )' I: ' Ii I' ii Ii Ij Ii d II I I I I i NOW, THEREFORE, the parties hereto, in consideration of the above recitals, the mutually made and to be kept promises set forth hereinafter, and for other good and valuable considerations, and intending to be legally bound and to legally bind their heirs, I successors, assigns, and personal representatives, do hereby covenant, promise, and agree as follows: 1. CHILD CUSTODY. This Agreement makes no provision for the legal or physical custody of the parties' children because neither of the children are minors at this time. 2. CHILD SUPPORT. Husband shall pay Wife, for the financial support and maintenance of the parties' son, Peter, who is a senior at Carlisle High School, the sum of $963.00 per month. The parties acknowledge that Husband has been paying that sum for Peter's support in the recent past and they agree that the obligation to pay support in I' Ii,,' that amount shall continue through the month of Peter's high school graduation, June of 2003. In addition to the support payments referred above, Husband shall provide medical ill coverage for Peter so long as he is eligible through the medical insurance as provided by II Husband's employer. Husband shall provide, at the request of Wife, confirmation that the Ii coverage is in place. Husband shall pay all of Peter's medical expenses as defined by the Ii Support Law of Pennsylvania which are not reimbursed by medical insurance to the extent r[ those expenses exceed $250.00 per year. ThE' support payments provided herein are 11 based on the current shared legal custody arrangements between the parties. Any change i! in the custodial arrangement could subject the amount herein to modification. " 3. RESIDENCE. Husband shall convey to Wife, to be her sole and separate property, the marital residence at 100 Mooreland Avenue in the Borough of Carlisle, Cumberland County, Pennsylvania. With regard to the property, the parties specifically agree as follows: A. Husband has, contemporaneously with his execution of this Agreement, executed a Special Warranty Deed to convey the property to Wife and delivered the same to his attorney to be held in escrow pursuant to the terms of this Agreement. B. Wife accepts the property subject to the existing mortgage lien against it and promises that she shall, within ninety (90) days of the date of Ii II I .1 h it Ii Ii I: , , I: i. ii I' i' 11 I 1\ H Page 2 of 15 " f' ,- ri I ~ " I' ,.,.,.,.,.,"" Ufi .~".- , ~~ - --' "~'H" ,~~ _"C"""~~" HI' I" ~. . ~, ,,!,,,,,,,,~~1;;I;!'''1''~~II!f~j~"1''^,1W'''',,",";,'''.":'r1"!'''"''''fW"-~:'''i1~'''''I'fI'f''f!''~I;l>j;'IIp~''f!lill''f1'''!'1''iU'~''''r:!~'''!i:;-''\i'lC;~l!llm!l'J!!:~I~ I I , ! I I I I I I , I I! Ii II I' Ii II d 1! 'I I, : ~ " I' II Ii p ;; Ii ii \\ Ii ;1 'I Ii , Ii i! If d II Ii Ii II Ii il Ii \; Ii Ii " " Ii Ii !i ii 'I " If Ii Ii I , I i I I , , I I " 1f'" ~, , this Agreement, refinance the mortgage debt or otherwise obtain Husband's unconditional release from any further liability on the debt secured by such mortgage, and provide proof to Husband that he has been released from such obligation, In the event that Wife is not able to refinance the property or otherwise obtain Husband's unconditional release from the obligation which encumbers the property, within ninety (901 days of the date of this Agreement, Wife shall, upon Husband's written demand, list the property for sale with a local real estate agent and make all reasonable efforts to conclude the sale of the property in a prompt fashion. In the event that the property is not under a contract of sale within one hundred and twenty (120) days of the date Wife lists it for sale or, if Wife fails to list the property within twenty (20) days of Husband's written demand, either party may petition the Court of Common Pleas of Cumberland County to supervise the sale or, if necessary, appoint a Special Master to supervise the sale of the property. In the event of the sale of the property pursuant to this paragraph, all of the net proceeds of sale shall be, payable to and belong to Wife. C. Husband does hereby authorize and direct his attorney to release to Wife or her attorney the Deed held in escrow pursuant to Sub Paragraph A hereof at the time that the parties file consents in the divorce action now pending between them, so that the Deed may be recorded prior to the entry of the final decree in divorce. D. The parties acknowledge and represent to each other that, other than the mortgage provided for herein, there are no liens, encumbrances, or other charges against the title to the property. Wife agrees that she shall pay, in the ordinary course of business, all expenses arising out of her ownership, use, or occupancy of the property from the date of this Agreement into the indefinite future and shall indemnify and save harmless Husband from any loss, cost, or expense caused to him by her failure to do so. Page 3 of 15 , . ''''''''-/Oe'-''''-r I I I I I i , I II II Ii 4. MASLAND & BARRICK INVESTMENT ACCOUNT. The parties acknowledge that they are the joint owners of an investment account with Masland & Barrick, Inc., which is also identified as an account with Natnan & Lewis Securities, Inc., which account contains primarily assets and funds inherited by Wife during the parties' marriage. Husband does hereby assign, transfer, grant, convey, and set-over to Wife, all of his right, title, and interest in and to said account and does hereby waive any further interest in or claim to the account and confirm it to be the sole and separate property of Wife. Further, the parties agree that they will make, execute, acknowledge and deliver all documents necessary to formalize the transfer of the account, and the assets within the account, to Wife's name alone. 5, MOTOR VEHICLES. The parties agree that they will divide, distribute, and otherwise dispose of the motor vehicles owned by them, and any debt associated with those vehicles, as follows: A. Husband shall retain the 1996 Toyota Camry automobile and shall be responsible to pay and satisfy, in accordance with its terms, the debt owed to Chase Auto Finance which encumbers the vehicle. B. Wife will retain the 1999 Volkswagon Passat station wagon and II II shall be responsible to pay and satisfy, in accordance with its terms, the debt II II owed to Volkswagon Credit Corporation which encumbers the vehicle. Ii The parties shall make, execute, acknowledge, and deliver any and all certificates of title, ! assignments, and other documents necessary to make the transfers or confirm the i I ownership of the vehicles set forth in this Paragraph. Each of the parties shall be 'I I' II Ii II Ii , I I i II Ii II n responsible to pay any expenses, claims, or debts arising out of their use, ownership, or , possession of the vehicles from the date of this Agreement forward, including any ,I II payments due on the debts which encumber the vehicles, and shall further indemnify and save the other harmless from any loss, cost, or expense arising out of their failure to do so. 6. ASSETS TO BE RETAINED BY OR TRANSFERRED TO HUSBAND. The parties agree that Husband shall be the sole and separate owner of the following assets, whether 1\ those assets are now held in joint names or the name of either of the parties individually: d Page 4 of 15 A. Husband's interest in the law firm of which is he a member, Mette, Evans & Woodside, a Pennsylvania professional corporation, or its corporate successor; and i I Ii II Ii Ii Ii Ii p " !! H Ii Ii I! Ii il " " i Ii The parties agree that they will make, execute, acknowledge and deliver, within thirty Ii (30) days after the date of this Agreement, all documents necessary to transfer such \\ Ii items to Husband's name alone and for Wife to waive any further claim to or interest in Ii such assets and Wife does hereby acknowledge those assets to be the sole and separate II property of Husband from and after the date of this agreement. II 7. ASSETS TO BE RETAINED BY OR TRANSFERRED TO WIFE, The parties agree Ii Ii that Wife shall be the sole and separate owner of the following assets, whether those 'I Ii assets are now held in joint names or the name of either of the parties individually: Ii II A, Wife's Roth IRA with American Express. Ii B. Wife's shares of stock in the Coca Cola Corporation, which are ;j I: Wife's non-marital property. II C. All checking and savings accounts currently held in Wife's name. " II The parties agree that they will make, execute, acknowledge and deliver, within thirty Ii (30) days after the date of this Agreement, all documents necessary to transfer such II items to Wife's name alone and for Husband to waive any further claim to or interest in I I I I I I I B. Husband's interest in South Central Agency, Inc., a Pennsylvania business corporation which operates a real estate title insurance business; and C, Husband's interest in Riveroaks Associates, a Pennsylvania business partnership which owns the office building at which Husband's law firm practices; and D. Riveroaks Leasing Company, a Pennsylvania business partnership which owns office equipment and related items leased to Husband's law firm; and E. Husband's Roth IRA with American Express. F. All checking and savings accounts currently held in Husband's name. Page 5 of 15 """'f"'''"" II I: I: Ii t! I' I: Ii Ii Ii il n i' , il Ii 'I i Ii Ii 11 Ii " H " r Ii Ii I' Ii Ii Ii II " ii I; I' ,I " It Ii ) , I I i ,I "';~ Ii such assets and Husband does hereby acknowledge those assets to be the sole and II separate property of Wife from and after the dote of this agreement. ; 8, HUSBAND'S RETIREMENT ACCOUNTS. Husband represents that he was a participant in both a Defined Contribution Retirement Plan and a 401 (k) Plan with his employer, Mette, Evans & Woodside, at the date of separation and represents that those plans were subsequently merged and combined into one 401 (k) Plan which had a value, as of 30 August 2002 of $165,267.11 and which was fully vested in him, Husband further represents that he has made contributions to his account within the plan since separation in the total amount of $44,185.15 and that, as a result, the value of the marital portion of his benefits within the combine plan, as of 30 August 2002, was $121,080.96. With regard to Husband's account within the combined plans, the parties agree as follows: A. The parties will divide equally the marital portion of Husband's account within the plan. B. To effect the division of the marital portion of the accounts, Husband shall transfer to a tax-deferred account in Wife's name alone, pursuant to a Qualified Domestic Relations Order, funds having a value of $60,540.48 as of 30 August 2002, plus or minus any investment performance after that date until the funds are transferred. C. Husband shall obtain, at his expense, a Qualified Domestic Relations Order to make the transfer pursuant to this Paragraph and have the order entered, administered, and the transfer of funds made as promptly after the date of this Agreement as is possible. D. After the transfer of funds pursuant to the Qualified Domestic Relations Order in accordance with this Paragraph, Husband shall remain the sole owner of the balance of the funds within the 401 (k) Plan, free of any claim by Wife, and Wife waives any further claim to or interest in the funds remaining within Husband's account in the combined plans after the transfers required by this Agreement. Page 6 of 15 I" "I ';'~ ~'r- " f; I , , Ii i I I 11,1 The parties will cooperate with each other and with their counsel, to implement and carry out the terms and provisions of this Paragraph as promptly as possible after the date of II this Agreement and will make, execute, acknowledge and deliver any and all documents necessary to implement the transactions contemplated by this Paragraph. 9. INVESTMENT ACCOUNTS FOR CHILDREN. The parties acknowledge that they hold various accounts, or have in the past held various accounts, for the intended benefit of the children. With regard to those accounts and assets, the parties hereby agree as follows: i II Ii i' Ii Ii II Ii Ii 'i Ii H i II ij ii I! I: II , I i ! ~ A. Husband represents that the Quick & Reilly investment account formerly held by the parties in joint names, and originally funded by Husband's parents, has been fully liquidated and that all of the proceeds of that account have been paid or applied for the benefit of the parties' older son, Miller. B. Husband currently owns a policy of insurance on the life of the parties older son, Miller, which has a death benefit of $100,000.00, a cash value, as of August of 2002, of approximately $12,290.00, and is issued by America Insurance Company, Husband shall change the ownership of that policy so that it is owned by both Husband and Wife, shall arrange for both Husband and Wife to receive premium bills and all notices regarding the continuation of the policy, and the parties shall then change the beneficiary of the policy to their younger son, Peter, who shall remain the sole primary beneficiary of the policy during his lifetime, Wife shall be designated the sole secondary beneficiary and that designation shall remain for the balance of her lifetime. C. Wife acknowledges that she currently has an investment account with Van Kampen Funds which she holds for the benefit of the parties' younger son, Peter, and which was originally funded by her parents for Peter's benefit. Wife shall transfer that account into the joint names of Husband and Wife who shall, thereafter, hold that account for Peter's benefit and shall make that account, and all of the funds and proceeds of that , I! Ii I' Ii Ii " " I; H II if II Ii Ii I' I' II I: " II " II I i , I Ii II Page 7 of 15 .... I'" r--' , ~~ C.'... , II il I i , , , Ii I , I I' II I, i' I: Ii r ,I Ii Ii Ii I' " II Ii I Ii II I' 'I II I: " Ii l! II Ii " !! Ii Ii II J1 I Ii ii II " " I' !f Ii Ii it II 'I I Ii I i I I ",- account, available to pay the cost of Peter's college education or other formal education following high school. Wife represents that the account has a balance now of approximately $7,194.00. 10. ALIMONY. Husband shall pay alimony to Wife as follows: A. He shall pay alimony in the amount of $1,500.00 per month for as long as he is obligated to pay child support for the parties' son Peter pursuant to Paragraph 2 hereof. In the month in which his child support obligation terminates, and each consecutive month thereafter during the term of the alimony payment as provided in Sub-Paragraph B hereof, he shall pay alimony to Wife in the amount of $2,463.00, The amount of alimony shall be subject to modification in accordance with Sub-Paragraph E hereof. Otherwise, the amount of alimony shall not be subject to modification or change and shall continue in the amount provided for in this Sub-Paragraph until terminated in accordance with Sub-Paragraph B hereof. B. The alimony shall continue through the end of February 2010 or until Husband's death, Wife's death, Wife's remarriage, or Wife's cohabitation with another man, not her spouse or a member of her immediate family, whichever shall first occur. Otherwise, the alimony shall not be subject to termination. C. All payments made by Husband to Wife pursuant to this paragraph, shall be deemed alimony, as defined in Section 71 (b) (1) (Al of the Internal Revenue Code as amended, and as such Section is amplified by the provisions of the Tax Reform Act of 1984 and the Tax Reform Act of 1986, and any future laws or regulations related thereto. Payments from Husband, when received by Wife, shall be deductible in the year of payment by Husband pursuant to Section 215 of the Internal Revenue Code, as amended, or any similar future laws or regulations thereto, and shall be includable in the year of receipt in the gross income of Wife pursuant to Section 71 (b) (1) (Al of the Internal Revenue Code, as amended or any similar future laws or regulations thereto, Page 8 of 15 I" D. The alimony payments shall be made by Husband to Wife directly and shall be paid in equal biweekly-installments. In the event that Husband is late in making any of the payments for more than seven (7) days, Wife shall have the right to have the alimony payment provisions of this Agreement entered as an order of court in Cumberland County, Pennsylvania, and administered through the Cumberland County Domestic Relations Office. In such event, the parties will cooperate to obtain the entry of such an order and will make, execute, acknowledge, and deliver any and all documents necessary to promptly obtain an order for alimony in accordance with the terms and provisions of this Paragraph. E. The alimony payments agreed to herein were based upon an estimated earning capacity of $20,000.00 per year for Wife. In the event that Wife's actual gross income exceeds $40,000.00 in any calendar year during the duration of the alimony payments, Husband's alimony obligation shall be reduced by one-half of any amounts by which Wife's income Ii exceeds $40,000.00, This reduction shall apply in the ,calendar year(s) II following the calendar year(s) Wife's gross income exceeds $40,000.00. " Ii Wife agrees to provide a copy of her Federal tax return to Husband annually I: Ii on or before May 1 of each calendar year during the duration of the alimony 11 I: payments. Ii 11 , HEALTH INSURANCE FOR WIFE. The parties acknowledge that Wife is I, Ii currently covered by health insurance provided by Husband's employer. Husband shall maintain that insurance coverage on Wife, through his employer, until the entry of a final Ii decree in divorce. Husband shall provide to Wife, or cause his employer or its insurance Ii carrier to provide to Wife, all necessary notices and other information to comply with Ii COBRA regulations so that Wife may, at her option, continue the insurance after the date I: of the final decree in divorce. Ii 12. LIFE INSURANCE. Husband shall obtain and maintain, at his sole expense, II insurance on his life which will pay death benefits in an amount at least equal to his Ii obligation to pay child support and alimony pursuant to this Paragraph. The parties agree I Ii I, ~ ~ I, \' I I I Ii II " II ii " " II " II II II I I I Page 9 of 15 ,;;;,,,,".m.~ i I I i Ii r that the initial death benefit will be an amount of at least $207,000.00. Husband shall maintain Wife as the beneficiary on such insurance in an amount equal to the balance of Ii alimony owed to her pursuant to this Agreement, assuming that the alimony obligation runs through February of 2010 and Husband shall provide Wife with verification of the amount of insurance and the beneficiary designation on a regular basis, at least annually. 1 Husband shall be entitled to designate another beneficiary to receive the balance of the I I death benefits of such policy and to designate contingent beneficiaries in the event of II Wife's death. Husband shall pay all premiums and take all actions necessary to keep such II policy in full force and effect, in strict accordance with the terms and provisions of this Ii paragraph, and shall not otherwise assign, transfer, or otherwise encumber the policy or ,! Ii take any action which would result in the reduction of the death benefits to Wife below Ii , what is required by this Agreement. I 13. PERSONAL PROPERTY. The parties hereto mutually agree that they have 1, I effected a satisfactory division of the furniture, household furnishings, appliances, and Ii ii other household and personal property between them and they mutually agree that each Ii i' :1 party shall, from and after the date hereof, be the sole and separate owner of all such Ii tangible personal property presently in his or her possession, whether said property was II I! heretofore owned jointly or individually by the parties hereto, and this agreement shall 1',/,1 have the effect of an assignment or receipt from each party to the other for such property as may be in the individual possessions of each of the parties hereto, the effective date of Ii i! said bill of sale to be contemporaneous with the date of the execution of this Agreement. !I Ii 14. WAIVER OF EQUITABLE DISTRIBUTION. The parties acknowledge that each li Ii of them have had a full and ample opportunity to consult with counsel of their choice .1 I: regarding their claims arising out of the marriage and divorce and that they have I'!,. specifically reviewed their rights to the equitable distribution of marital property, including rights of discovery, the right to compel a filing of an Inventory and Appraisement, and the ii If right to have the court review the assets and claims of the parties and decide them as Ii", part of the divorce action. Being aware of those rights, and being aware of the marital property owned by each of the parties, the parties hereto, in consideration of the other Ii terms and provisions of this agreement, do hereby waive, release and quitclaim any n Page 10 of 15 ";f'A....' ::"'~_y."._ ,. " ~~,~ ,--".'_~O -'ro-~ _ further right to have a court or any other tribunal equitably distribute or divide their marital property and do hereby further waive, release and quitclaim any and all claim against or interest in assets now currently in the possession or held in the name of the other, it being their intention to accept the terms and provisions of this agreement in full satisfaction of all of their claims to the marital property of the parties and the equitable distribution of the same. 15. WAIVER OF ALIMONY, SUPPORT AND ALIMONY PENDENTE LITE, The parties acknowledge that they are aware of the income, education, income potential, and assets and holdings of the other or have had full and ample opportunity to become familiar with such items. Both parties acknowledge that they are able to support and maintain themselves comfortably, without contribution from the other beyond that as provided for II", in this Property Settlement Agreement, upon the income and assets owned by each of them. The parties hereby accept the mutual covenants and terms of this Agreement and Ii" the benefits and properties passed to them hereunder in lieu of any and all further rights , to support or alimony for themself, counsel fees, and alimony pendente lite at this time and during any and all further or future actions of divorce brought by either of the parties i ! hereto and the parties do hereby remise, release, quit claim, and relinquish forever any i i and all right to support, alimony, alimony pendente lite, counsel fees and expenses I II beyond those provided for herein, during the pendency of or as a result of any such Ii actions, as provided by the Divorce Code of Pennsylvania or any other applicable statute, II at this time and at any time in the future. II !I II H II II f 16, WAIVER OF ESTATE RIGHTS. HU3band releases his inchoate intestate rights in the estate of Wife and Wife releases her inchoate intestate rights in the estate of Husband, and each of the parties hereto by these presents for himself or herself, his or her heirs, executors, administrators, or assigns, does remise, release, quit claim, and forever discharge the other party hereto, his or her heirs, executors, administrators, or Ii assigns, or any of them, of any and all claims, demands, damages, actions, causes of IJ action or suits of law or in equity, of whatsoever kind or nature, for or because of any matter or thing done, omitted, or suffered to be done by such other party prior to the date hereof; except that this release shall in no way exonerate or discharge either party hereto Ii Ii i I I I I I I , ,I Page 11 of 15 i ~ I' I: " I' " II '! I from the obligations and promises made and imposed by reason of this agreement and shall in no way affect any cause of action in absolute divorce which either party may have I against the other. I!:.! 17. WAIVER OF PROPERTY CLAIMS AND ESTATE CLAIMS. Except as herein I otherwise provided, each party hereto may dispose of his or her property in any way, and I each party hereby expressly waives and relinquishes any and all rights he or she may now ! have or hereafter acquire, under the present or future laws of any jurisdiction, to share in i I".i,' the property or the estate of the other as a result of the marital relationship, including, without limitation, the right to equitable division of marital property, alimony, alimony II pendente lite, and counsel fees, except as provided for otherwise in this Agreement, Ii dower, courtesy, statutory allowance, widow's allowance, right to take in intestacy, right 'I to take against the will of the other, and right to act as administrator or executor of the other's estate, and each will, at the request of the other, execute, acknowledge, and deliver any and all instruments which may be necessary or advisable to carry into effect I this mutual waiver and relinquishment of all such interests, rights, and claims. 1;;I,,! 18. REPRESENTATION AS TO NO DEBTS. Husband specifically represents to Wife that she is not liable on and has not signed for any of the debts or obligations of if Mette, Evans & Woodside, P.C., South Central Agency, Inc., Riveroaks Associates, Ii Riveroaks Leasing Company, or any other debt or obligation created by him during the li I: marriage, The parties hereto mutually represent to the other than neither of them has II incurred any debts in the name of the other not previously disclosed or provided for in this 1,1 agreement. Each of the parties hereby represents to the other that neither one of them Ii, have incurred or contracted for debts in the name of the other or for which the other is or I would be legally liable from and after the date of the parties' separation. Both parties i , hereto mutually agree and promise that neither will contract or otherwise incur debts in i i the other's or joint names without the prior permission and consent of the other party , hereto. Both parties hereto represent and warrant to the other party that they have not Ii so contracted any debts unbeknownst to the other up to the time and date of this Ii Agreement, 11 II Page 12 of 15 '~.-"""I"'- ., I, I I ,~ ~..'... ; II Ii q 11 Ii I; , I I , I I' Ii II I' ,/ " Ii I i Ii II Ii Ii I II I I ,i Ii ~I'--m 19. DISCLOSURE. Both of the parties hereto represent to the other that they have made full disclosure of the assets and income and income sources owned, controlled, or enjoyed by either of them and that neither party hereto has withheld any financial information from the other. Each of the parties represents that they have reviewed this information with an attorney of their choice, or had the opportunity to review this I information with an attorney of their choice and voluntarily decided not to do so. Further, i the parties each acknowledge that they are aW3re that they have the right to compel the Ii other party to provide full financial information about all assets owned by either party and i all liabilities owed by either party and have the right to have a court force such disclosure , I in a divorce action. Being aware of those rights, the parties expressly waive the right to further disclosure or discovery regarding marital assets, liabilities, incomes, and finances. 20. CONCLUSION OF DIVORCE. The parties acknowledge that this agreement is made in contemplation of the conclusion by both of them of an action in divorce which has been filed or will be filed shortly by one of the parties hereto. Both of the parties hereto agree that they shall, contemporaneously with the execution of this agreement, execute and deliver to their respective attorney or attorneys, an Affidavit of Consent under Section 3301 (c) of the Divorce Code, consenting to the entry of a final decree in divorce, and a Waiver of further notice for the entry of such decree and that those documents will be filed with the court promptly but that neither party shall take any action to conclude the divorce until such time as the Qualified Domestic Relations Order contemplated by this Agreement has been prepared and approved and can be submitted to the court to be entered at the same time as the final decree in divorce is entered by the court, Both parties agree that they shall accept the terms and provisions of this agreement in full satisfaction of any claims they may have under the Divorce Code of the Commonwealth of Pennsylvania, including, but not limited to, alimony, alimony pendente lite, counsel fees, equitable distribution, and the like. 21. INCORPORATION OF AGREEMENT. This Agreement shall be incorporated, but not merged, in the final decree in divorce to be entered in the action now pending between the parties. Page 13 of 15 " , 22. RELEASE. The parties acknowledge that the purpose of this agreement is to divide all of their marital property, resolve all of the economic claims between them, and terminate and conclude any and all claims one party may have against the other. The parties acknowledge that each of them has had ample opportunity to consult with an attorney of their choice and to obtain legal representation with regard to this agreement and to the claims which they are terminating hereby. Consequently, each of the parties, for themselves, their heirs, successors, and assigns, does hereby accept the terms and I provisions of this agreement in full satisfaction of any claims, of any nature, they may i ! have, or may ever have had, against the other party and each of the parties does hereby i II waive, relinquish, release, and surrender forever any claim they have against the other Ii party, arising out of their marital relationship, or any other dealing between the parties Ii prior to the date of this agreement, provided, however, that this release shall not i' II exonerate either of the parties from the obligations they expressly make in this agreement, II which shall survive the date of this agreement iJntil such obligations are fully performed. " Ii 23. CHOICE OF LAW. This Agreement shall be interpreted, applied and enforced II in accordance with the laws of, and by the courts of, the Commonwealth of Pennsylvania. n 24. SEVERABILITY. If for any reason whatsoever any part of this Agreement shall Ii be declared void or invalid, only such part shall be deemed void and in all other respects Ii this Agreement shall remain valid and fully enforceable. I: , II 25. NON-WAIVER. The waiver of any term, condition, clause, or provision of this II Ii Agreement shall in no way be deemed or considered a waiver of any other term, !' II condition, clause or provision of this Agreement. ,If,' IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day Ii and year first above written. \! Ii II Ii II Ii Ii Ii 4ft>> ~ ,G7...L 'MIC AEL D. REED . Page 14 of 15 , ~ ~ ~- COMMONWEALTH OF PENNSYLVANIA , , COUNTY OF ~ On this, the /Cldiday of ~ ' 2003, before me, the undersigned , officer, personally appeared MICHAEL D. REED known to me (or satisfactorily proven) to i I be the person whose name is subscribed to the within instrument, and acknowledged that , Ii said person executed same for the purposes therein contained. t; 55.: I t i i I Ii ,i U II " Ii ,I If H " 'I'! ! II COMMONWEALTH OF PENNSYLVANIA Ii II IN WITNESS WHEREOF, I hereunto set my hand and official seal. fl/lA)g~ My. ommission Expir s: , NOTARIAL SEAL Jean L Kosier, Notary Publi.c City of Hummelstown,County of Dauphin My Commission Expires Feb. 9, 2004 , COUNTY OF CUMBERLAND ) ( 55.: ) On this, the I (J:J1 day of ~ ' 2003, before me, the undersigned I officer, personally appeared NANCY AMI5 REED, known to me (or satisfactorily proven) II to be the person whose name is subscribed to the within instrument, and acknowledged II that said person executed same for the purposes therein contained. Ii " I' il II Ii Ii I' i i I 1 IN WITNESS WHEREOF, I hereunto set my hand and official seal. a~ "-IJ? Lj/CU~/~ My Com Isslon Expires: NOTARIAL SEAL AMY M. NARKINS, NOTARY PIl!lLIC LEMOYNE BORO., CUMBERLAND COUNlY MY COMMISSION EXPIRES lAN, 31. 2005 Page 15 of 15 ,~ """'1 "" .~,- '''''''''''''!'~~, I -'_ ~', ,',"'__~"' '""_~__I_'_ ,.,~ .'j , "~ - .-'-,," ,'. EXHIBIT "B" , " " ",,;,".' ,,,,,~,, I - ,," .,~", ~ I I NANCY A. REED, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff vs. CIVIL ACTION - LAW NO. 2000- 2123 CIVIL TERM MICHAEL D. REED, Defendant IN DIVORCE ORDER FOR PAYMENT OF ALIMONY AND NOW, this J7 e: day of (}4 ' 2003, upon the stipulation of the parties, and to implement a provision of the Property Settlement Agreement reached by the parties and dated 12 May 2003, we hereby direct that the Defendant, Michael D. Reed (hereinafter "Husband") shall pay alimony for the Plaintiff, Nancy Cole Amis, formerly Nancy Amis Reed (hereinafter "Wife") as follpws: A. Husband shall pay alimony in the amount of $2,463.00 per month, to Wife, commencing in the month of July 2003 and continuing each consecutive month thereafter for the terms set out herein. The amount of alimony shall be subject to modification in accordance with Sub-Paragraph E hereof. Otherwise, the amount of alimony shall not be subject to modification or change and shall continue in the amount provided for in this Sub-Paragraph until terminated in accordance with Sub-Paragraph B hereof. B. The alimony shall continue through the end of February 2010 or until Husband's death, Wife's death, Wife's remarriage, or Wife's cohabitation with another man, not her spouse or a member of her immediate family, whichever shall first occur. Otherwise, the alimony shall not be subject to termination. C. All payments made by Husband to Wife pursuant to this paragraph, shall be deemed alimony, as defined in Section 71 (b) (1) (A) of the Internal Revenue Code as amended, and as such Section is amplified by the provisions of the Tax Reform Act of 1984 and the Tax Reform Act of 1986, and any future laws or regulations related thereto. Payments from Husband, when received by Wife, shall be deductible in the year of payment by Husband pursuant to Section 215 of the Internal Revenue Code, as amended, ~ I I' or any similar future laws or regulations thereto, and shall be includable in the year of receipt in the gross income of Wife pursuant to Section 71 (b) (1) (A) of the Internal Revenue Code, as amended or any similar future laws or regulations thereto. D. The alimony payments shall be made by Husband to Wife directly and shall be paid in equal biweekly-installments. In the event that Husband is late in making any of the payments for more than seven (7) days, Wife shall have the right to have the alimony payment provisions of this Agreement entered as an order of court in Cumberland County, Pennsylvania, and administered through the Cumberland County Domestic Relations Office. In such event, the parties will cooperate to obtain the entry of such an order and will make, execute, acknowledge, and deliver any and all documents necessary to promptly obtain an order for alimony in accordance with the terms and provisions of this Paragraph. E. The alimony payments set in this Order were based upon an estimated earning capacity of $20,000.00 per year for Wife. In the event that Wife's actual gross income exceeds $40,000.00 in any calendar year during the duration of the alimony payments, Husband's alimony obligation shall be reduced by one-half of any amounts by which Wife's income exceeds $40,000.00. This reduction shall apply in the calendar year(s) following the calendar year(s) Wife's gross income exceeds $40,000.00. Wife agrees to provide a copy of her Federal tax return to Husband annually on or before May 1 of each calendar year during the duration of the alimony payments. We shall retain jurisdiction of this case to monitor, interpret, and enforce the,provisions of this Order as necessary. r.R!J~: CO~' FfiOM t:!['C;();;U.. BY THE COURT to l~:M~:~'i)l!~r~~ "W,~, I flfliti M\t~tn ;.~~ 11'~1V .';p.r\~f ' :$' . IW, "'" ,,, .~ "'.\"'.;/ E1ll!l Hil! ,;~j IIf &'lild C at C..,I,;:;i1l, r... rhi" v~" If d2VtI.3 .--. !cd ~iW 13. ~ I / I J J. ProthonGtaitf DISTRIBUTION: Samuel L. Andes, Esquire (Attorney for Plaintiff) 525 North 12" Street, P.O. Box 168, Lemoyne, PA 17043 John J, Connelly, Jr., Esquire (Attorney for Defendant) P.O. Box 650, Hershey, PA 17033 L~ ., 1~ ~I - ~- I I. I NANCY A. REED, Plaintiff ) ) ) I ) ) ) ) ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA vs.' CIVIL ACTION - LAW NO. 2000- 2123ecl'd. T:ffiM -o~ ~ ;, Q:h.!.,; r- ""--.....1- IN DIVORCE ~J:, _ JjE'i k:C- :t> ~J~ ::r.;: r", :3: .'-.... 11 ~K ~~~~Q "'c co :.:,:)f;1 "7 _, =1 N :CJ -< -. :0 AND NOW comes the above-named parties, by their undersigned attorneys-Who represent to the court that they are authorized to make this Stipulation on behalf of the parties, and stipulate and agree that the court shall enter the attached alimony order to satisfy Paragraph 10 of the Property Settlement Agreement between Plaintiff and Defendant dated May 12, 2003, MICHAEL D. REED, Defendant STIPULATION ~~~ W'J\;I ~ Samuel L. A~ ' Attorney for P,laintiff Date: 001n f' C9nnelly (J korne,.y,.:f;or De}fend_art Date: (, as /03 -""""~ " ,~ 'I EXHIBIT "e" il,., " "~.--,"""/'- _.v,__ I" -' " -- '1:'<<'7 -" --"",,, ~', I, ' _~, - c 06-22-2004 13:03 FROM-KEEFER,WOOO,AllEN_~RAHAl 7176125805 T-261 P,002/002 F-272 'REV-16a EX (6-96) "REAL'TY-mANS'F.ERl'AX :STA"TEMENTOF"VALUE RECORDER'S USE ONLY ax COMMONWEALTH OF PENNSYLVANIA co u DEPARTMENT OF REVENUE ,IIIJRE'AU OF INDIVIDUAL ,.AXES 2jJO UlT1 r' .DEPT,.280603 SeD,ReversDfor InstructIons HARRISBURG PA 17129-0603 - ~o~ COrnple\a eBch section and file In duplicate with Racordel of Deeds when (1) 1I1e full velue/conslderation Is not set forth In lhe deed, (2) when'the deed Is without consideration. 01 by gift. or (3) a tax exemption Is clalll1ed. A Statement of Value Is oot required If lhe transfer Is wholly exempt from taX based on: (1) family relationship or (2) public utility easement_ If mo,e space Is needed, attach additional sheel s', 'cl ame Paula J. leicht Street Address 3401, ~orth F~nt Slr8,!, , City H~f1lsburg ZJp COde 17110 ran's' S Nancy .... RBed. aloa known a. N~ncy Ami. treet ress 100 Mooretand Avenua n. . Robart L. and Cynthla O. Stout GO S5B Aloxanllar Sp~ng Road a PA p a 17013 ca~lrAa a PA p a 17013 2. Check Appropriate Box Billow for Exemption Claimed CJ Will or Inlestate succession (Name of Decedent) Estate File Number) CJ Transfer to Industrial Development Agency. o Transfer 10 a lNst. (Attach complete copy of !rUst agreementldentlfylng all beneficiaries. o Transfer between princlpal and agenL (AItacI1 complete copy of agency/straw party agreement o Transfer 10 the Commonwealth. the United Sta\e8 and Instrumenlalltlw by gift. dedication. condemnation or In lieu of condemnetion. (If condamnetion or In Ilau of condemnation. attach copy of resolution.) o Transferfrom mortgagor 10 e holderofe mortgage In default. Mortgage Book Number ----' pege Number _' CJ CorrectIVe or confinnatory dead. (Attach complete copy of the prio, deed being corrected or confirmed.) CJ Statutory corporate consolidation. merger or division. (Al1Bch copy of articles.) o other (Please explain exemption claimed. if other than listed above.) Undel' pllnaltiea of law, I deelar8 that I havlI examined this Statement. Includl"; accDmpanylng Information, and to the best of my knowledge and bollof. ills true, correct and complete. Is,gn.~reol~J.:)~H~ I Date ~I f, ~d 3 ' FAILURE TO COMPLETE THIS FORM PROPERLY OR ATTACH APPUCABLE DOCUMENTATION MAY RESULT IN THE RECORDER'S REFUSAL TO RECORD THE DEEO. BOOK 258 PAGt:3588 ',',""." .., :"'F . . ,. .. NANCY AMIS, formerly known as Nancy A. Reed, Plaintiff/Respondent v. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW MICHAEL D. REED, DefendantJPetitioner No. 2000-2123 Civil Term In Divorce CERTIFICATE OF SERVICE I, John J. Connelly, Jr., Esquire, of James, Smith, Dietterick & Connelly, attorney for the Petitioner, Michael D. Reed, hereby certify that I have served a copy of the foregoing Petition for Reduction in Payment of Alimony on the following on the date and in the marmer indicated below: U.S. MAIL, FIRST CLASS, PRE-PAID Samuel L. Andes, Esquire 525 North 12th Street Lemoyne, Pennsylvania 17043 JAMES, SMITH, DIETTERICK & CONNELLY DATE: IJ-J!), -(Jlf By: J tto Post 0 ox 650 Hershey, P A 17033 (717) 533-3280 P A J.D. No. 15615 _ ,'~'~'~' ~'.' _ ,r. 'I' .',0:.- .'c .,~"'i"_~~,~' ~ ~ _ ~ , ", , ,,," :' ~- "='~~~ " ""-"""'-'- '^ , . "L' ~. --^^ 'v',':"- '--'.'~ .,,-,,,__ ,~ '.~.m<_~ ~__. "" ",<"~,I.,! .~" '"1"' Q V' . . . 1-0 C;j l;;''::; () '"71 =--.-J rhFJ ;F~ t~g ~~t(S ~:;,,~ ~); .' rn - .r"'~ Cl -,:'J ~ :-~) c:' -< !l!~.,,=:,,~":>_.~ifI.!,--c 'i'J~ . . . . . '" ;e;:to: '" . .. . . IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY STATE OF PENNA. . '" NANCY A. REED, . . . Plaintiff No. 2000-2123 CIVIL TERM VERSUS . . MICHAEL D. REED, . . . . . . . . . . . . . . . . . . . . . . . . . . '~w...,. '''';''-', ,-- Defendant DECREE IN DIVORCE AND NOW, ~ IT IS ORDERED AND -.;zq 2003 DECREED THAT NANCY A. REED , PLAINTIFF, AND MTrHIIRT. n RRFTl , DEFENDANT, ARE DIVORCED FROM THE BONDS OF MATRIMONY. THE COURT RETAINS JURISDICTION OF THE FOLLOWING CLAIMS WHICH HAVE BEEN RAISED OF RECORD IN THIS ACTION FOR WHICH A FINAL ORDER HAS NOT YET BEEN ENTERED; NONE By T ATIW~% J. PROTHONOTARY . . . . . -0 1', , , ,"" . . . . . . . . . . . . . . . . . . . . . . . . . . " . . . " . . . . . ~~;iWHMi:Glll<iiOl:lillJitilil"~~"'iIIi~~m_,~_i'/ijIHlfl - ...oIIIlIi:.-.~""'-- (c-dH73 (J) U -,;1 '03 J J _ ,__" .~. ,~ "... ',.! ~j.''J~;~~a4 ~ 'Jz~ I~'v 4J 4 ~ - ~~",~ , , - ,~. " , , NANCY A. REED, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA vs. CIVIL ACTION - LAW MICHAEL D. REED, Defendant NO. Q.000- dla3 Cw-.oT~ IN DIVORCE NOTICE TO DEFEND AND CLAIM RIGHTS You have been sued in court. If you wish to defend against the claims set forth in the foregoing pages, you must take prompt action. You are warned that if you fail to do so, the case may proceed without you and a decree in divorce or annulment may be entered against you by the court. A judgment may also be entered against you for any other claim or relief requested in these papers by the Plaintiff. You may lose money or property or other rights important to you, including custody or visitation of your children. When the ground for the divorce is indignities or irretrievable breakdown of the marriage, you may request marriage counselin'g. A list of marriage counselors is available in the Office of the Prothonotary at: Office of the Prothonotary Cumberland County Courthouse 1 Courthouse Square Carlisle, PA 17013 IF YOU DO NOT FILE A CLAIM FOR ALIMONY, DIVISION OF PROPERTY, LAWYER'S FEES OR EXPENSES BEFORE A DIVORCE OR ANNULMENT IS GRANTED, YOU MAY LOSE THE RIGHT TO CLAIM ANY OF THEM. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 Telephone: (717) 249-3166 , , NANCY A. REED, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA vs. CIVIL ACTION - LAW NO. t'-()..)/J 3 I~ MICHAEL D. REED, Defendant IN DIVORCE NOTICE OF AVAILABILITY OF COUNSELING TO THE WITHIN-NAMED DEFENDANT: You have been named as the Defendant in a Complaint in a divorce proceeding filed in the Court of Common Pleas of Cumberland County. This notice is to advise you that in accordance with Section 3302 (d) of the Divorce Code, you may request that the court require you and your spouse to attend marriage counseling prior to a divorce being handed down by the court. A list of professional marriage counselors is available at the Domestic Relations Office, 13 North Hanover Street, Carlisle, Pennsylvania. You are advised that this list is kept as a convenience to you and you are not bound to choose a counselor from this list. All necessary arrangements and the cost of counseling sessions are to be borne by you and your spouse. If you desire to pursue counseling, you must make your request for counseling within twenty days of the date on which you receive this notice. Failure to do so will constitute a waiver of your right to request counseling. II , . NANCY A. REED, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA vs. CIVIL ACTION - LAW (rv.dld.3 ~ ~ NO. MICHAEL D. REED, Defendant IN DIVORCE COMPLAINT IN DIVORCE AND NOW comes the above-named Plaintiff, NANCY A. REED, by her attorney, Samuel L. Andes, and makes the following Complaint in Divorce: 1. The Plaintiff is NANCY A. REED, an adult individual who currently resides at 100 o Mo"reland Avenue in Carlisle, Cumberland County, Pennsylvania. 2. The Defendant is MICHAEL D. REED, an adult individual who currently resides at 58 Wilson Street in Carlisle, Cumberland County, Pennsylvania. 3. Both the Plaintiff and Defendant have been bona fide residence of the Commonwealth of Pennsylvania for at least six months immediately previous to the filing of this Complaint. 4. The Plaintiff and Defendant were married on 9 January 1982 in Washington, Pennsylvania. 5. There have been no prior actions of divorce or annulment between the parties. 6. The marriage is irretrievably broken. 7. Plaintiff has been advised of the availability of marriage counseling and the Plaintiff may have the right to request that the Court require the parties to participate in counseling. COUNT I IRRETRIEVABLE BREAKDOWN 8. The Plaintiff requests this Court to enter a Decree in Divorce. . ' WHEREFORE, Plaintiff requests this Court to enter a Decree in Divorce pursuant to the Divorce Code of Pennsylvania. COUNT II - EQUITABLE DISTRIBUTION 9. During the course of the marriage, the parties have acquired numerous items of property, both real and personal, which are held in joint names and in the individual names of each of the parties hereto. WHEREFORE, Plaintiff prays this Honorable Court, after requiring full disclosure by the Defendant, to equitably divide the property, both real and personal, owned by the parties hereto as martial property. COUNT III - ALIMONY 10. Plaintiff lacks sufficient property to provide for her reasonable needs in accordance with the standard of living of the parties established during the marriage. 11. Plaintiff is unable to support herself in accordance with the standard of living of the parties established during the marriage through appropriate employment. 12. The Defendant is employed and enjoys a substantial income from which he is able to contribute to the support and maintenance of the Plaintiff and pay her alimony in accordance with the Divorce Code of Pennsylvania. WHEREFORE, Plaintiff prays this Honorable Court to enter an Order awarding Plaintiff from Defendant permanent alimony in such sums as are reasonable and adequate to support and maintain Plaintiff in the station of life to which she has become accustomed during the marriage. COUNT IV ALIMONY PENDENTE LITE 13. Plaintiff is without sufficient income to support and maintain herself during the pendency of this action. 14. Defendant enjoys a substantial income and is well able to contribute to the support and maintenance of Plaintiff during the course of this action. WHEREFORE, Plaintiff prays this Honorable Court to order Defendant to pay her reasonable alimony pendente lite during the pendency of this action. - . . COUNT V - COUNSEL FEES AND EXPENSES 1 5. Plaintiff is without sufficient funds to retain counsel to represent her in this matter. 16. Without competent counsel, Plaintiff cannot adequately prosecute her claims against Defendant and cannot adequately litigate her rights in this matter. 17. Defendant enjoys a substantial income and is well able to bear the expense of Plaintiff's attorney and the expense of this litigation. WHEREFORE, Plaintiff prays this Honorable Court to order Defendant to pay the legal fees and expenses incurred by Plaintiff in this litigation of this action. Do<" 71fudr / ~ JIJ~ ~~~ S~~. Andes Attorney for Plaintiff Supreme Court ID # 17225 525 North 12'h Street Lemoyne, Pa 17043 (717) 761-5361 /'~u~"'~ I.,' ,"-: ~~i: 4,. '.~ " PLAINTIFF IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NANCY A. REED, vs. CIVIL ACTION - LAW NO. 2000-2123 CIVIL TERM MICHAEL D. REED, DEFENDANT IN DIVORCE PRAECIPE TO TRANSMIT RECORD TO THE PROTHONOTARY: Transmit the record, together with the following information, to the Court for entry of a divorce decree: 1. Grounds for Divorce: Irretrievable breakdown under Section 3301 (c). 2. Date and manner of service of the Comp~aint: Acceotance of Service filed bv Plaintiff's counsel indicatinq service on or about 21 Aoril 2000. 3. Complete either Paragraph (a) or (b): (a) Date of execution of the Affidavit of Consent required by Section 3301 (c) of the Divorce Code: By Plaintiff: 16 Mav 2003 By Defendant: 12 Mav 2003 (b) (1) Date of execution of the Affidavit required by Section 3301 (d) of the Divorce Code: (2) Date of filing and service of the Plaintiff's Affidavit upon the Respondent: 4. Related claims pending: None. 5. Complete either (a) or (b): (a) Date and manner of service of the Notice of Intention to File Praecipe to Transmit Record, a copy of which is attached: (b) Date Plaintiff's Waiver of Notice in Section 3301 (c) Divorce was filed with the Prothonotary: Dated 16 Mav 2003 and filed contemooraneouslv herewith. Date Defendant's Waiver of Notice in Section 3301 (c) Divorce was filed with the Prothonotary: Dated 12 Mav 2003 and filed contemooraneouslv herewith. Date: 2.3 M~ A;o~ BY~(\A ~'Ao. muel L. Andes - Attorney for Plaintiff .. ~~ - .~~_." ., ~ ., ~- I' ~ I" (') 0 0 ~ w ,., '05':; :.l!: ~ S';!f11 :0- -< -'"'' ... Z:rl N rnf--::' CD S:. -o-f'n <"-~ G) 'C1O r-c' ,,) I '--0 ~ .' :!;;: :'-':!-- ~D ~7-+f ~ ~;t(:; 'TO S' >t;:: Om 2: ;;;! ::( (~) :0 -< ..."""~~ ~~ffi!l!l~~"M!Q~WIlI~~~~. PLAINTIFF ) ) . ) ) ) ) ) ) ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NANCY A. REED, vs. CIVIL ACTION - LAW NO. 2000-2123 CIVIL TERM MICHAEL D. REED, DEFENDANT IN DIVORCE AFFIDAVIT OF CONSENT , I 1. A Complaint in Divorce under Section 3301 (c) of the Divorce Code was filed on 7 April 2000 and served upon the Defendant within thirty days thereafter. 2. The marriage of Plaintiff and Defendant is irretrievably broken and ninety (90) days have elapsed from the date of filing of the complaint and the date of service of the complaint on the Defendant. 3. I consent to the entry of a final decree in divorce either after service of a Notice of Intention to Request Entry of the Decree or upon filing of my Waiver of the Notice of Intention to Request Entry of the Decree. 4. I have been advised of the availability of marriage counseling and understand that the Court maintains a list of marriage counselors and that I may request the Court to require my spouse and I to participate in counseling and, being so advised, do not request that the Court require that my spouse and I participate in counseling prior to the divorce becoming final. I verify that the statements made in this Affidavit are true and correct and I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904 relating to unsworn falsification to authorities. D~ 1;2 i ;,200 > f -- JPJ /2L ~EL D. REED ,-'.,"< , ~~ - , ."'.'.-,", ~ . ,,~~ , 'I!...':""'I " ~ , ~ ,- ~I' ,~" -"~r" o w :x ". -< N C.,1 o ..., <-, I-.C"> n1~: ""::}rn :,;''' or ._"~o t~~ 3f'n 5;; -, (') c i$: "Utn [!lnl Z:t) 21+- S;f,);: r:"'.- ;<C PC) Zc >e: z ::.( :e. ::1l: 9 .- ~~"'!\$l~:1"llIW!l~!__"~l~~W~~~!\!\t~l$J!!il!~~!n~" . i I ,I , i il II NANCY A. REED, 'I ii PLAINTIFF Ii I vs. MICHAEL D. REED, DEFENDANT ) ) ) ) ) ) ) ) ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 2000-2123 CIVIL TERM IN DIVORCE AFFIDAVIT OF CONSENT 1. A Complaint in Divorce under Section 3301 (c) of the Divorce Code was filed on 7 April 2000 and served upon the Defendant within thirty days thereafter. 2. The marriage of Plaintiff and Defendant is irretrievably broken and ninety (90) days have elapsed from the date of filing of the complaint and the date of service of the complaint on the Defendant. 3. I consent to the entry of a final decree in divorce either after service of a Notice of Intention to Request Entry of the Decree or upon filing of my Waiver of the Notice of Intention to Request Entry of the Decree. 4. I have been advised of the availability of marriage counseling and understand that the Court maintains a list of marriage counselors and that I may request the Court to require my spouse and I to participate in counseling and, being so advised, do not request that the Court require that my spouse and I participate in counseling prior to the divorce becoming final. I verify that the statements made in this Affidavit are true and correct and I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904 relating to unsworn falsification to authoriti IIA IYlIUJ ;).()113 Date ~? 0 0 W -n s:. ;X ---\ ;:R l>J r rn :r... !~~i2 z:u -< zc N ~~3? C/) d~-; c....:~ -<....:- ,<0 .-..lQ "'" '~5:B ~8 ::x >c:: S> iSN\ ~ ,--l ~ ~~ wr.~~l!lil;_~-.m.'?iAA-l_l!'!-':"$I~I~1\l~~~_fiJ Pl"'mtW,._~ -~, II NANCY A. REED, PLAINTIFF IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA vs. CIVIL ACTION, LAW NO. 2000-2123 CIVIL TERM MICHAEL D. REED, DEFENDANT IN DIVORCE WAIVER OF NOTICE OF INTENTION TO REQUEST ENTRY OF A DIVORCE DECREE UNDER SECTION 3301 lCI OF THE DIVORCE CODE 1. I consent to the entry of a final decree in divorce without notice. 2. I understand that I may lose rights concerning alimony, division of property, lawyer's fees, or expenses if I do not claim them before a divorce is granted. 3. I understand that I will not be divorced until a divorce decree is entered by the court and that a copy of the decree will be sent to me immediately after it is filed with the Prothonotary. I verify that the statements made in this Waiver are true and correct. I understand that false statements herein are subject to the penalties of 18 Pa. C.S. Section 4904 relating to unsworn falsification to authorities. /0 /J1dAf ~ Of) 3 Date .'~ ~-"',~ . < '-~"I .-. . ~- " .~ r._~~1 I:ldl~ (') 0 ~ c: <:.> ;s;: :r.: .0 CO T-." spgJ XlII: -< ""p -"''' N TrrT1 ~i5;'" c..J :Z}O -<...,::.. ,....\ i r-~-' >:jCJ ~'\~- :l>> ~t::H ~o :r. <)- ~c) ~ '70 C cJ'fn Z '-1 ~ )> rV ::0 -< I '~~"." ~m~~'liw"-m.Wffllfij!>;Bl~~~!,...fIIIilIII"'~ PLAINTIFF IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NANCY A. REED, vs. CIVIL ACTION - LAW NO. 2000-2123 CIVIL TERM MICHAEL D. REED, DEFENDANT IN DIVORCE WAIVER OF NOTICE OF INTENTION TO REQUEST ENTRY OF A DIVORCE DECREE UNDER SECTION 3301 ICI OF THE DIVORCE CODE 1. I consent to the entry of a final decree in divorce without notice. 2. I understand that I may lose rights concerning alimony, division of property, lawyer's fees, or expenses if I do not claim them before a divorce is granted. 3. I understand that I will not be divorced until a divorce decree is entered by the court and that a copy of the decree will be sent to me immediately after it is filed with the Prothonotary. I verify that the statements made in this Waiver are true and correct. I understand that false statements herein are subject to the penalties of 18 Pa. C.S. Section 4904 relating to unsworn falsification to authorities. m~ Date I;;" I ;:w 0.3' I d2z:.dd~ MICHAEL D. REED f'-n_ -. _ ,.)I!l"" " 8 '"os::: ~JR :2:;:1::1 (/)5; ;:$<" ~iS ilfEc ~.o .Pc;::: z :< r"0 o c..;, :;;:: """ ...." "':> c.':} ~ :::;1 t03i~ r''' f :.-=:;("') " '--'f" ,-;~ :rl' '::";'0 ism ;;----1 -"', :u -< ""'- ~ i2 4_ _ c _.~".~" ~~~.~ ".--!mr-_ ~,.~"","~)! r:lI~lrn'n"i".'!'l'R~""";"Ii"""""'ffl~~IIfl~~!ll'fI!l!~!!I!I~l'lm!IIiI!J~~~~ NANCY A. REED, PLAINTIFF IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA vs. CIVIL ACTION - LAW NO. 2000-2123 CIVIL TERM MICHAEL D. REED, DEFENDANT IN DIVORCE ACCEPTANCE OF SERVICE I, Michael D. Reed, hereby accept service of the original Complaint in Divorce and acknowledge receipt of a copy of the Complaint. Date: April 21, 2000 /04162L Michael D. Reed If . ~, ,-, . -4l. ,J! " -.-.'- "--~-". I ~~ ~ ~ 2 J3.~ ;pm :;J!';?;] gpfi f;2 C)' $(") ~o ~ :::< r-:; .... .:::;, <:.0 ~ "" 1\) c..., !;f? :e.. ::zt- is " ;~ .'"? ~),- dY)j ::517'1 ,;-/ ,= -11 ~. ., .f1'lJl!~wtIt!Jll:lll"""'_~"1lI~~1ll~1'Ill!'JII!J(Il~~~li~i!fl~~ PLAINTIFF IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NANCY A. REED, vs. CIVIL ACTION - LAW NO. 2000-2123 CIVIL TERM MICHAEL D. REED, DEFENDANT IN DIVORCE PRAECIPE TO THE PROTHONOTARY: Please withdraw all economic claims previously filed in this matter by the Plaintiff, including the claims for equitable distribution, alimony, alimony pendente lite, counsel fees and expenses. 2 ~ fA... .':4( 2..oU ~ Date , Q, C){)Ug, S~I L.~ Attorney for Plaintiff Supreme Court ID # 17225 525 North 12'h Street Lemoyne, Pa 17043 (717) 761-5361 I. . ".........'" "." <. ," 'C . "",'-. ,.,,, ~ h. ",' '"",- ~" I" ~ 1:J{":D 9J lJ) ~r;: ~~, ~t'; z: C) =e: $0 ~ j ~ I\:> ,-~~ ,-~" .W " -~'".<~~ ,~'--,~ ",. "b'" <::::> <..> :::!l: :::,,; ~<: I\:) <..;, 5;? ':?! n,,""Yr .~ -or1i enD iji~:) <5:i:f <C) (~)ri1 Ii -< --:: I.! __,_Jl~w;,'Elf"R'-l~ijj1,..~_~~,.."...."JIf~~!I~"~!~ NANCY A. REED, PlaintifflRespondent IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 2000 - 2123 CIVIL TERM MICHAEL D. REED, DefendantJPetitioner : CIVIL ACTION - LAW : IN DIVORCE RULE TO SHOW CAUSE AND NOW, this dC>~ day of ~, ~ J I fl/',.. , 2003, upon consideration of ~o- Petitioner, Michael D. Reed's, Petition for Bifurcation, a Rule is hereby entered upon the Respondent, Nancy A. Reed, to show cause, if any, why the relief requested should not be ~ granted. This Rule shall be returnable at hearing on the Ie{ day of ~ 2003 at q'.OD , Q .m. in Courtroom ~, Cumberland County Courthouse, One Courthouse Square, Carlisle, Pennsylvania. J. F"',"<,,_~e,',_""1 _ '<., ""__,,,_~,,",",~,,_, _"".'''',".''_''''"_ ',' "~_,__~",_,, " , "- 1">'-.. . ~_ -^- ,.=-,. '-'.-," ,c . ,,". "'.,, ,~._.' ~<'"J~'",-"- Fi, If' ~~l )~~ r p w VlNV/\lASNN3d AlNnoo Orf11838tfiJn8 Zt: :8 W~ rj G NlIr CO A,.nJl0r\j"';.~, (';.;' 'i .:;v~ ,avo '\..h ,1.....l'.J"'. ~_I: '1.-'0- .... 3JI:J:lO-Q:fll:\ ~U ~,,' . , . " ;.," '" ,I-"'-,'''--"~" ." ., ",. "'r;> .._~...,~"i\t-...., , '. ""JIll, __~ 1lI.1.~__".'__ !III. I ,.~"- NANCY A. REED, Plaintiff/Respondent IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 2000 - 2123 CIVIL TERM MICHAEL D. REED, Defendant/Petitioner CIVIL ACTION - LAW IN DIVORCE DECREE AND ORDER AND NOW, this day of , 2003, after hearing upon Defendant/Petitioner, Michael D. Reed's, Petition for Bifurcation, it is hereby ORDERED and DECREED that: I. The divorce action is bifurcated from any ancillary economic claims; 2. The parties are divorced from the bonds of matrimony; 3. This Court retains jurisdiction over any claims raised by the parties to this action for which a final order has not yet been entered; and BY THE COURT: J. ',.,_.," ,'. ~." "~ ,"--_..,~"".-,.."~,- -'.~~-\",--~"'~-"~"~'----~ -. -? NANCY A. REED, Plaintiff/Respondent IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYL VANIA v. NO. 2000 - 2123 CIVIL TERM MICHAEL D. REED, DefendantJPetitioner CIVIL ACTION - LAW IN DIVORCE PETITION FOR BIFURCATION AND NOW comes the DefendantJPetitioner, Michael D. Reed, by and through his counsel, James, Smith, Durkin & Connelly LLP, hereby respectfully submits this Petition for Bifurcation and in support thereof avers as follows: 1. action. 2. action. 3. The Petitioner is Michael D. Reed, Defendant in the above-captioned divorce The Respondent is Nancy A. Reed, Plaintiff, in the above-captioned divorce The Petitioner and Respondent are husband and wife, having been lawfully married on January 9,1982. 4. The parties have lived separate and apart since on or about September 5,1999, a period well in excess of two years. 5. On April 7, 2000, the Respondent filed a Complaint in Divorce in the Cumberland County Court of Common Pleas, in which she asserted, inter alia, that the marriage of the parties was irretrievably broken and requested the Court to enter a Divorce Decree. T << ~_~.,.,." ,~H _. _~_' 'n'. .__~_ -^".', _, '__~ ,_". _. . ' 6. A true and correct copy of the Complaint in Divorce was served upon the Petitioner by his counsel's acceptance of service. 7. Neither party's property rights would be affected in any way by bifurcation of this divorce action. 8. Bifurcation of the divorce would not alter the economic status quo. 9. The Petitioner has suffered due to his inability to restructure his own personal life. 10. Bifurcation is authorized by the Divorce Cod and Pa.R.C.P. 1920.52(d). 11. The public policy of this Commonwealth and the legislative intent of the Divorce Code as set forth at 23 Pa.C.S.A. g3102(a) warrants the granting of a bifurcated Decree in Divorce 12. The Petitioner believes and therefore avers that the advantages of bifurcation in this divorce action are substantially greater than any potential disadvantages for the following reasons: ( a) A resolution of the divorce claim will allow the parties to restructure their personal lives after a separation of over two years; ( b ) The litigation between the parties will be simplified and the stress minimized by the granting of bifurcation in these circumstances; ( c ) Bifurcation of this divorce action will assure that each party's personal life is not held hostage to economic claims; and (d) Bifurcation will in no way prejudice, diminish or impair the Respondent's economic circumstances or claims under the Divorce Code. .-: -. n, '^'M_ " .""C." -,=",<,~~--t"'--- _ -'i"'"^''''y _, ,~ - _ ,~., ' - ~ - , " --~ WHEREFORE, the Petitioner, Michael D. Reed, respectfully requests that this Honorable Court grant his Petition for Bifurcation, reserving jurisdiction over any pending ancillary economic claims. Respectfully submitted, JAMES, SMITH, DURKIN & CONNELLY Date: OI-/5-D3 By: l~,,-, - ~ f- .," <, "U..'~_' ,,-". I'. _,,,__'.O"~~'N~ _~_._'___'_H_~ _ _=",,__~_, ,_ JAN. -[4' 03(TUE) II :2.5 JAMES SMITH DURK[N & CONNELLY TEL:717 533 3280 . P.011/012 VERIFJCA T ION 1 verify that the statements made in this Pleading are true and correct. I understand that false statements herein are made subject to the penalties of 1& Pa. C.S. Section 4904. relating to unsworn falsification to authorities. Date: / Jill !o3 I I " I,e-, T--, , I NANCY A. REED, PlaintifflRespondent IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 2000 - 2123 CIVIL TERM MICHAEL D. REED, Defendant/Petitioner : CIVIL ACTION - LAW : IN DIVORCE CERTIFICATE OF SERVICE I, John J. Connelly, Jr., Esquire, of James, Smith, Durkin & Connelly, attorney for the Petitioner, Michael D. Reed, hereby certify that I have served a copy of the foregoing Petition for Bifurcation on the following on the date and in the manner indicated below: U.S. MAIL. FIRST CLASS. PRE-PAID Samuel L. Andes, Esquire 525 North 12th Street Lemoyne, Pennsylvania 17043 JAMES, SMITH, DURKIN & CONNELLY DATE: {)J-/5-()3 ,,-.-- ~--,.--- -_"~"_,,,_,, I,''''',' ,- <>O'-r"!:'''' ,.e~_:,,_ '__', -__~~"""_-~_~"1 '_c'~ - -"-""""1.,,".,"'7 _""~,, ~ " ~i ~. , ,^ .. ,-. '...."",'".,~",',,.. .,.,-,,, "":'--~ .-,~~~~, I'" (') C1 '__J C,: ~,,'-' ....., ~: ~~~ I 't--.~ I , ,--' .. I, ~~) , '- ~>~ l-,-,' ~'-::::I , C: ,,:,:.. .".'-," -0 -,'~, :l-~' C~ rc- . , /": :?"t --1 . :J:J -~ \ D -< __~'~_:"'''"'''''! ,1'!'!'~ ~"- _,,,'''''''''''_' ;_I!\!!_ c,..,)) - Plaintiff ) ) ) ) ) ) ) ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NANCY A. REED, vs. CIVIL ACTION - LAW MICHAEL D. REED, Defendant NO. 2000-2123 CIVIL TERM IN DIVORCE I '; ,'I ACCEPT ANCE OF SERVICE AND ENTRY OF APPEARANCE I hereby enter my appearance for the Defendant, Michael D. Reed, in the above- captioned action. I acknowledge receipt of a certified copy of the Complaint in Divorce filed in the above action on behalf of the Defendant on ~ 13 2000. ~u>~ ~ Don~ . Kissinger ' ' P.O. Box 810 Harrisburg, PA 17108 Supreme Court 10 # Y 7737 1-; DEPARTMENT OF HEALlfl f'.b. ~ODO- ;;)1-;;(.3 C..T COMMONWEALTlIOf PEIINSYI.VAtllA IU05 151 REV ll-f1l1 VITAL RECORDS COUNTY DIVORCE ~ RECORD OF OR AIIINOLMENT (CHECK ONE) 0 STATE FilE NUMBER STATE FILE DATE CUmberland HUSBAND 1. NAME (First) Michael Reed (Middle) D. DATE OF BIRTH Stale 4. PLACE OF 8lRTH 7. USUAL OCCUPATION 2 (Month) May (Day) 30 (Last) 3. RESIDENCE County (State or Foreign Country) Street or R.D. City. Boro. or Twp. enns Ivania 5. NUMBER OF THIS MARRIAGE 6. RACE WHITE BLACK 1 l[] 0 OTHER (Specify) o WIFE Attorney 8. MAIDEN NAME 1\mis (First) Nancy (Middle) A. 9. (Last) DATE (Month) (Day) OF BIRTH November 14 Reed 10. RESIDeNCE SIreetor R.D. City. Boro. or Twp. State 11. PLACE OF PA BIRTH 14. USUAL OCCUPATION (State or Foreign Country) virginia County Cumberland Carlisle 100 Mooreland Avenue 12. NUMBEA 6. RACE OF THIS WHITE MARRIAGE 1 BLACK OTHER (SpecUy) o o KJ home maker 15. PLACE OF THIS MARRIAGE NUMBIO:R OF CHILDREN THIS MARRIAGE 17A. (County) (SIa/9 or For91gn Country) Washington Pennsylvania 17B. NUMBER OF DEPENDENT 18. PLAINTIfF CHILDREN UNDER 18 HUSBAND OTHER (Specily) o 16. 19, DATE OF THIS MARRIAGE DECREE GRANTED 10 HUSBAND WIfE (Month) (Day) January WIFE 2 r 0 ~ 0 HUSBAND WIFE SPLIT CUSlODY OTHER (Specify) 21. LEGAL GROUNDS FOR 0 0 0 DIVORCE OR ANNULMENT (Month) (Day) (Y9ar) DATE REPORT SENT (Month) 10 VITAL RECORDS o 20. NUMBER OF CHILDREN 10 CUSTOPY OF 22. DATE of DECREE 3301 (c) (Day) 24. SIGNATURE Of TRANSCRIBING CLERK Year 1955 Year 1956' 9 (year) 1982 (Year) Michael D. Reed 176-48-7761 Nancy A. Reed -- 234-86-8038 :lii'-' """l'J!l11 -I " RA WLE & HENDERSON LLP By: Timothy J. Abeel Identification No.: 23104 Deborah M. Bailey Identification No.: 82715 The Widener Building One South Penn Square Philadelphia, PA 19107 (215) 575-4200 Attorneys for Defendants Allied Van Lines, Inc., and Kevin Corbett JAMES ROBINSON and GWEN MILLER, his wife, Plaintiffs IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 002133-Civil v. CIVIL ACTION - LAW ALLIED V AN LINES, INC., and KEVIN CORBETT, Defendants JURY TRIAL DEMANDED ENTRY OF APPEARANCE TO THE PROTHONOTARY: Kindly enter our appearance on behalf of defendant, ALLIED VAN LINES, INC. By: RA WLE & HENDERSON UP JdruJ,_ !It \grldut Timothy J. Abee1 Deborah M. Bailey Attorneys for Defendant, Allied Van Lines, Inc. 0559501.01 I -y "-""-"'-''^''~'''~ ';'1-- ~'.9'_'~-"'" Th., '''','''",~e",,, ,,-,-".,______~,,"~"'_~ ,- ~,,-,~-,.~~". RA WLE & HENDERSON LLP By: Timothy J. Abeel Identification No.: 23104 Deborah M. Bailey Identification No.: 82715 The Widener Building One South Penn Square Philadelphia, PA 19107 (215) 575-4200 Attorneys for Defendants Allied Van Lines, Inc., and Kevin Corbett JAMES ROBINSON and GWEN MILLER, his wife, Plaintiffs IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 002133-Civil v. CIVIL ACTION - LAW ALLIED VAN LINES, INC., and KEVIN CORBETT, Defendants JURY TRIAL DEMANDED PRAECIPE FOR RULE TO FILE COMPLAINT TO THE PROTHONOTARY: Please enter a Rule upon Plaintiffs to file a Complaint within twenty (20) days of service hereof or suffer the entry of a Judgment of Non Pros. RA WLE & HENDERSON By :7JJm.1. fJ2.lfif)~Jv{ Timothy J. Abeel Deborah M. Bailey Attorneys for Defendant Allied Van Lines, Inc. 0559488.01 "1-'- ~"__>0""_,,~ "--, 'I" -7_.~~_'1",_' -"'; "-'-~- z-" -,'':v~~r7_-_-"',_" .-,." I ~~ ~ JAMES ROBINSON and GWEN MILLER, his wife, Plaintiffs IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 002133-Civil v. CIVIL ACTION - LAW ALLIED V AN LINES, INC., and KEVIN CORBETT, Defendants JURY TRIAL DEMANDED RULE TO FILE COMPLAINT AND NOW, this rRday of S"'Cpl~€It,..2001, a Rule is hereby granted upon plaintiffs to file a Complaint within twenty (20) days from the date of service hereofor suffer the entry of a Judgment of Non Pros. n~~.) k ~ Prothonotary :,' C/ - 0559488.01 , -." -I' ',>' '.'~pr ~o_ ',-,. ,-_,~~_,~,,_, - -' _.~ - '-- - ~-- VERIFICATION Deborah M. Bailey, Esquire, states that she is the attorney for defendant, Allied Van Lines, Inc.; that she is authorized to take this verification on behalf of said defendant, Allied Van Lines, Inc.; that she has reviewed the foregoing Entry of Appearance, Praecipe for Rule to File Complaint, Rule to File Complaint and that the facts set forth therein are true and correct to the best of her knowledge, information and belief. These statements are made subject to the penalties of 18 Pa.C.S.A. 94904 relating to unsworn falsification to authorities. !~'f~f I 2=::;~~ Date: 0559501.01 I - - - '--~-: ~-,~-,-,,,_, - r"""P'? -'--~-t.,"",~~ -\ ~ , , I__~-- , CERTIFICATION OF SERVICE The undersigned hereby certifies that a true and correct copy of the foregoing Defendant's Entry of Appearance, Praecipe for Rule to File Complaint and Rule to File Complaint was served upon the below listed counsel by first-class mail, postage prepaid, this 29th day of August, 2001. Matthew S. Crosby, Esquire Handler, Henning & Rosenberg 1300 Lingletstown Road P.O. Box 1177 Harrisburg,PA 17108-1177 RA WLE & HENDERSON LLP By ])drtJv1Jt.Lt~ Deborah M. Bailey, Esquire Attorney for Defendant, Allied Van Lines, Inc. Dated: August 29,2001 0559501.01 ;, I:" ,~- '-"__"_.""'_'_~f1'_;;;___ '-~T -~'" -'--I-~"'-"'--,~. ~- <~"' ";':" -." ,.".--' - ,~--'-~"'-~--I""~'" ^,,-" >, --- ~-- r ~,;\ ~ ,~. ,~ ",,,,, '--~' n ~~: ~f~ f-~ ' ':::::::_i,J --;;.., C/;)-, r::::c; }:~~) ~;~ ~ -< , ,. .,e",..,.,.~."" __', ,," ' ~,'~ C) ~:~ I;~ i./') ("11 ~",) , U': ::-", , I~) '" i'I ~'=:l ~:~ IOn ~~ "~", ';;" C-' ,-" v. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYL VANIA : NO. 2000-2123 CML TERM NANCY C. REED, Plaintiff MICHAEL D. REED, Defendant : CIVIL ACTION - LAW : IN DIVORCE PRAECIPE TO WITHDRA. W APPEARANCE TO THE PROTHONOTARY: Please withdraw my appearance as counsel for the Defendant, Michael D. Reed, in the above-captioned action. Date: ~~r Z- , PRAECIPE FOR ENTRY OF APPEARANCE TO THE PROTHONOTARY: Please enter the appearance of John 1. Connelly, Jr., Esquire, on behalf of the Defendant, Michael D. Reed, in the above-captioned action. Date:4q \ 0' By: Jo .snne y, Jr., Esquire P st ceBo, 650 . H e 7033 (717) 533-3280 PA LD. No. 15615 >-' ,. ~ =.. ,.> ^' . '. .,-,,.1,l},,,,,:,,,,"!~,,,,_F"!"_', :;2 ,....",.,.,. r o {-'--.' ""1 ,_.0 ~ j"...) 'd') 01 11!!iQI~~ ,....,,~-._,..,-':"~ PLAINTIFF ) ) ) ) ) ) ) ) ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NANCY A. REED, vs. CIVIL ACTION - LAW NO. 2000-2123 CIVIL TERM MICHAEL D. REED, DEFENDANT IN DIVORCE ORDER OF~T AND NOW this -a- day of ~ ' 2003, upon the request of counsel for Plaintiff and with the agreement of 20unsel for Defendant, the hearing scheduled in this matter for March 19, 2003 is hereby continued. The matter will now be heard by the undersigned on May 19, 2003 commencing at 1 :30 p.m. in Court Room 2 of the Cumberland County Courthouse in Carlisle, Pe ia. ! i J. Distribution: / John J. Connelly, JR., Esquire (Attorney for Defendant) P.O. Box 650, Hershey, PA 17033 ) ~ Lap.WJ~ f!\ RKS 02-/9-03 ,/ Samuel L. Andes, Esquire (Attorney for Plaintiff) P.O. Box 168, Lemoyne, PA 17043 """".' ".. , -,."... ,,,,,',- I,. J'-.., ~ '-'e k~ "-,"",,,.,. _.~,_ '." Vh\iV!\l.\SI\li{j~, 1 I!, ,..---f",1"'\ i-.~,,:l_'--l\, 1--~(-lt/in8 ,.\1.1\: -). -". ". , , . \ '" 'V'~ I' n,ej,e H,:O L 0. ~::C,i c; - ' . AH,jj,C~':'j~~-:.G~>:;:.-'~f" . ::lO ~= ~- ", -.^ '^'Iii "'", __,_"___',O'1"O,,",~_,,IiJl~~I!lffi't!ml!'~lf!lIWl.'l~IJ!i!ll!lRl!!lllIlmlll~~ Plaintiff ) ) ) ) ) ) ) ) ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NANCY A. REED, vs. NO. 2000- 2123 CIVIL TERM MICHAEL D. REED, Defendant IN DIVORCE I NOTICE TO RESUME PRIOR SURNAME NOTICE IS HEREBY GIVEN that NANCY AMIS REED, Plaintiff in the above matter, having been granted a Final Decree in Divorce on the :).~ay of mo 1 t 2003, hereby elects to resume the prior surname of NANCY COLE AMIS, and gives this written notice pursuant to the provisions of 54 P.S. 9 704. Date: JlU1. 0 .1 ) G..D6~ COMMONWEALTH OF PENNSYLVANIA ) (SS.: COUNTY OF CUMBERLAND ) On the } 6t day of Jun d , 2003, before me, the undersigned officer, personally appeared NANCY AMIS REED, known to me (or satisfactorily proven) to be the person whose name is signed to the within Notice to Resume Prior Surname and acknowledged that she executed the foregoing for the purpose therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. o m J ~- '-rn '-1-}~/J) Notary P blic. NOTARIAL SEAL AMY M. HARKINS. NOTARY PUBLIC LEMOYNE BORO., CUMBERLANO COUNlY MY COMMISSION EXPIRES JAN. 31. 2005 ,;~~ i~ . ~" ~ ~ 0 ~ C '1J~ rnQ,;; l;. ~ "?>'L'.' , ~!~:' -; ~ "" -<: '" "', ~~i:~:, c' ~ .." (;'- .. ):~ - '" -K --;..l' :'l ::!Sc::; ')::10 ."" -- ~ c " ~ l;~' :~') (n .. ." .~.< .. .... --,.'. '...... ~"',.,~, -."iW " " ,;) ~:::.:, ~l ;,R.. ~l "_~,,_._-,...,~_1lW! . '"' ...' Plaintiff ) ) ) I ) ) ) ) ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NANCY A. REED, vs. CIVIL ACTION - LAW NO. 2000- 2123 CIVIL TERM MICHAEL D. REED, Defendant IN DIVORCE ORDER FOR PAYMENT OF ALIMONY AND NOW, this ----lL day of ~'J..~ ' 2003, upon the stipulation of the parties, and to implement a provision of the\Property Settlement Agreement reached by the parties and dated 12 May 2003, we hereby direct that the Defendant, Michael D. Reed (hereinafter "Husband") shall pay alimony for the Plaintiff, Nancy Cole Amis, formerly Nancy Amis Reed (hereinafter "Wife") as follows: A. Husband shall pay alimony in the amount of $2,463.00 per month, to Wife, commencing in the month of July 2003 and continuing each consecutive month thereafter for the terms set out herein. The amount of alimony shall be subject to modification in accordance with Sub-Paragraph E hereof. Otherwise, the amount of alimony shall not be subject to modification or change and shall continue in the amount provided for in this Sub-Paragraph until terminated in accordance with Sub-Paragraph B hereof. B. The alimony shall continue through the end of February 2010 or until Husband's death, Wife's death, Wife's remarriage, or Wife's cohabitation with another man, not her spouse or a member of her immediate family, whichever shall first occur. Otherwise, the alimony shall not be subject to termination. C. All payments made by Husband to Wife pursuant to this paragraph, shall be deemed alimony, as defined in Section 71 (b) (1) (A) of the Internal Revenue Code as amended, and as such Section is amplified by the provisions of the Tax Reform Act of 1984 and the Tax Reform Act of 1986, and any future laws or regulations related thereto. Payments from Husband, when received by Wife, shall be deductible in the year of payment by Husband pursuant to Section 215 of the Internal Revenue Code, as amended, . :,. " ,. I, or any similar future laws or regulations thereto, and shall be includable in the year of receipt in the gross income of Wife pursuant to Section 71 (b) (1) (A) of the Internal Revenue Code, as amended or any similar future laws or regulations thereto. D. The alimony payments shall be made by Husband to Wife directly and shall be paid in equal biweekly-installments. In the event that Husband is late in making any of the payments for more than seven (7) days, Wife shall have the right to have the alimony payment provisions of this Agreement entered as an order of court in Cumberland County, Pennsylvania, and administered through the Cumberland County Domestic Relations Office. In such event, the parties will cooperate to obtain the entry of such an order and will make, execute, acknowledge, and deliver any and all documents necessary to promptly obtain an order for alimony in accordance with the terms and provisions of this Paragraph. E. The alimony payments set in this Order were based upon an estimated earning capacity of $20,000.00 per year for Wife. In the event that Wife's actual gross income exceeds $40,000.00 in any calendar year during the duration of the alimony payments, Husband's alimony obligation shall be reduced by one-half of any amounts by which Wife's income exceeds $40,000.00. This reduction shall apply in the calendar year(s) following the calendar year(s) Wife's gross income exceeds $40,000.00. Wife agrees to provide a copy of her Federal tax return to Husband annually on or before May 1 of each calendar year during the duration of the alimony payments. I:: I' We shall retain jurisdiction of this case to monitor, interpret, and enforce the provisions of i'i this Order as necessary. / Ji " J. DISTRIBUTION: / Samuel L. Andes, Esquire (Attorney for Plaintiff) 525 North 12'h Street, P.O. Box 168, Lemoyne, PA 17043 . John J. Connelly, Jr., Esquire (Attorney for Defendant) P.O. Box 650, Hershey, PA 17033 .~~ 1~n.(73 ~ -,.. :..- .....'~ \~~, ~\{ ,-','-- ~~~-. 0' ~.r, ,':'L. i.1- o ,-- ~ '~?c ~':J~,:: -'-\~ --' ,., _.)3: ~_~\3 -~;,?j) 'jZ "1'-7 \."i~\ IT"1 t:~)O- ':2 ":;J (.) ~. :-;:::', (") c:; I-~ " -,~"~- ~, '" " . '", _,_~,_,,_,,~> .,~.~ ";,~K/_ _,~ ~.~~!;"",~:.m'f.'i>f~~!"'~!'M!I~~Iffij!1!l!~!i'lJ~~jI'!Wl~~ II - ~ , '. Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NANCY A. REED, vs. CIVIL ACTION - LAW NO. 2000- 2123 CIVIL TERM MICHAEL D. REED, Defendant IN DIVORCE STIPULATION AND NOW comes the above-named parties, by their undersigned attorneys who represent to the court that they are authorized to make this Stipulation on behalf of the parties, and stipulate and agree that the court shall enter the attached alimony order to satisfy Paragraph 10 of the Property Settlement Agreement between Plaintiff and Defendant dated May 12, 2003. ,~~~WJQ ~ Samuel L. A~ Attorney for Plaintiff Date: . C nnelly r Defendapt Date: ~ 0.')103 - o c :;;:"" -t,;{i- rn....: :;.2: co. [~: C_~' ~~~" L.- -, ,~ c-.. Co) ,"-, ~{ (~- t,~= ',', 2: :\:'3 -1.:- -J,S-~ ,:'-~~q ~'s iTl :~~ ~ co ;'>:l c:::> ~, -. ,~_,__'7'".ltll~Mllll!lll'"l~~\5U!'lI~~~~ " " " ,', IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION - LAW NANCY A. REED, Plaintiff v. No, 2000-2123 IN DIVORCE MICHAEL D. REED, Defendant Stipulation for the Entrv of Qualified Domestic Relations Order The parties, Nancy A. Reed, Plaintiff, and Michael D. Reed, Defendant, do hereby stipulate as follows: 1. Michael D. Reed, date of birth May 30, 1955 (Social Security Number 176-48- 7761), hereinafter referred to as "Participant" is a participant in the Mette Evans & Woodside 40l(k) Plan described below (hereinafter referred to as the "Plan"). 2, The current and last known mailing address of Participant is 1419 Holly Pike, Carlisle, pennsylvania 17013. 3, Nancy A. Reed, Plaintiff, date of birth November 14, 1956 (Social Security Number 234-86-8038), hereinafter referred to as "Alternate Payee," is the spouse ofthe Participant and has raised claims for, inter alia, equitable distribution of marital property pursuant to the Pennsylvania Divorce Code, 23 Pa.C.S. Section 3101, et seq. 4. The current and last known mailing address of Alternate Payee is 100 Mooreland Avenue, Carlisle, Pennsylvania 17013. 5. This order applies to the following plan: Mette Evans & Woodside 401(k) Plan. . I " . - __ .~."."_'=__" .>> ,c__,_ ,,_~~ <c',' '-~ ^'"' >-="., ,- " .' 6. A portion of the Participant's account in the Plan is marital property subject to distribution by this Court. 7. Alternate Payee shall receive the sum of Sixty Thousand Five Hundred Forty Dollars and Forty Eight Cents ($60,540.48) from the Participant's account. This sum shall be allocated to Alternate Payee as of August 30, 2002, plus or minus any investment performance after that date until the date of distribution, 8. The Participant's Account shall be segregated for accounting and recordkeeping purposes into two (2) accounts, one (1) for Participant and one (1) for the Alternate Payee (the "Alternate Payee's Account"). The Alternate Payee's Account shall be deemed to have been withdrawn pro rata from each of the Participant's Accounts and pro rata from each Fund in which each Account is invested as of August 30, 2002. These two (2) accounts shall thereafter be credited pro rata with actual eamings (interest, dividends, gain or loss, etc.) or charged with actual losses and allowable administrative expenses in amounts proportionate to the balance of their respective accounts during the period the earnings accrued. Until this Order is determined to be qualified, the amounts held in the Alternate Payee's Account shall remain invested in the Funds in which such amounts were invested immediately before segregation. After this Order is determined to be qualified, the Alternate Payee shall have the same investment rights as provided to participants under the Plan. Except as specified below, the Alternate Payee's Account shall not be increased by any further contributions subsequent to the effective division date. A physical segregation of assets is not requITed. -,--, __ 0., ,-c,,--,-, _""__"",,,-,'_, __ I' _<~ 0, ~"-'","_'_ _~'_".__~~_=,__",_'_, '_-H,__"__~''''_''' -- ~ , " " " 9. The distribution to Alternate Payee from the Plan may be made as soon as administratively practicable following the Plan's determination that this order is a Qualified Domestic Relations Order. 10. Participant's death shall have no effect on payment of Alternate Payee's benefit under the Plan. 11. In the event the Alternate Payee dies before the Alternate Payee's benefit is paid, the benefit shall be paid in accordance with applicable Plan provisions regarding payments to beneficiaries, including payments when no beneficiary is designated. The Alternate Payee shall be entitled to name a beneficiary (or beneficiaries) to receive the unpaid balance of the benefits. The death of Alternate Payee before the Plan determines that this order is a Qualified Domestic Relations Order shall not affect the right of Alternate Payee's beneficiary to benefits from the Plan. 12. The parties shall promptly notifY the Plan of any change in their addresses from those set forth in this Order. 13. Nothing contained in this Order shall be construed to require any plan or plan administrator: (a) to provide to the Alternate Payee any type of form of benefit or any option not otherwise available to the Participant under the Plan, or (b) to pay any benefits to the Alternate Payee which are required to be paid to another alternate payee under another order determined by the Plan Administrator to be a Qualified Domestic Relations Order before this Order is '~-.,. '--'r-~ "c..___'_,"' ~_~_,~ -'S'~",_ '_'~'_'"J . __, _.~ H , ,- ''I. ,to determined by the Plan Administrator to be a Qualified Domestic Relations Order. 14. It is the intent of the parties and the court that the provisions of this Order operate as an effective assignment of the Participant's interest in the Plan under both federal and state laws, for all purposes, and constitute a valid Qualified Domestic Relations Order in compliance with Section 414 (P) of the Internal Revenue Code and Section 206 (d) (3) of the Employee Retirement Income Security Act of 1974 ("ERISA"), as amended by the Retirement Equity Act of 1984. 15. The parties intend and agree that the terms of this Stipulation shall be approved, adopted and entered as an Order of Court. 16. The Court of Common Pleas of Cumberland County, Pennsylvania, shall retain jurisdiction to amend this Order, but only for the purpose of establishing it or maintaining it as a Qualified Domestic Relations Order; provided, however, that no such amendment shall require the Plan to provide any form of benefit or any option not otherwise provided by the Plan, and further provided that no such amendment or right of the Court to so amend will invalidate this Order. 17. A certified copy of this Order shall be served upon the Plan. Said Order shall take effect immediately upon approval of the Order by the Plan and shall remain in effect until further Dated: )~ lA11 ~J ~~~ ~$v:.(j r\~ C) ) Order of Court. , ",--, ',,,,~~, ~ "'1--__\""1."" _.' r-_ _,~ '" -h " _ " r___,. .__ ,- '" "~~., " PARTICIPANT Ifl JjJ 1J /2...- Michael D. Reed '-'-"_~ '"7-"'-~1~ - _rl _~"_ ,_~_~~__, _ ~_ _~_,,,__ ,.._.... ., ,- ATTORNEY FOR P ARTICIP ANT ATTORNEY FOR AL TERNA TE PAYEE ~~ uel L. An s, Esquire " .. NANCY AMIS, formerly known as Nancy A. Reed, PlaintiID'Respondent v. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW MICHAEL D. REED, DefendantlPetitioner No. 2000-2123 Civil Term In Divorce AND NOW, this ORDER OF COURT ~ day o~ 2004, the hearing in the above- captioned matter scheduled for September 29, 2004 at 9:00 a.ill. is rescheduled to the 6th day of October, 2004, at 1:30 o'clock a.m. in Court Room NO.~ of the Cwnberland County Courthouse, One Courthouse Square, Carlisle, Pennsylvania. BY THE COllRT: ~ Djtribution: ' .)"lajntiff/Respondent: c/o Samuel L. Andes, Esquire, 525 North 12th Street, Lemoyne, PA 17043 ~endant/Petitioner: c/o John 1. Connelly, Jr., Esquire, P.O. Box 650, Hershey, P A 17033 08- d- ,-/-0 c/ "'.", -'! ".-,'- ,', ',,,0 .'., l' ,v, - ,".I - 'Co _ ~,' ,-~ q -- -.,., - ~ .., . - ~. '~---I-,-',~ ,VI' ".1 {'I :! f J.f1 ~7.."'., f) 1 , < , ,I , ~ /ciV1C:-.;CHLLC:3d 3;-11 :JJi:f:iO-G:jli.:i 7D1Z 'r, .::;U !MIW """,,"0 -- --F,1Il I'" ""-~'! ~-^1~ II NANCY A. REED, Plaintiff ) ) ) ) ) ) ) ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA VS. CIVIL ACTION - LAW MICHAEL D. REED, Defendant NO. 2000-2123 CIVIL TERM IN DIVORCE ORDER OF COURT r- AND NOW this --LL- day of December, 2004, the hearing previously scheduled in this matter is cancelled and the matter wilt be heard at 1 :30 p.m. on February 14, 2005. Date J. DISTRIBUTION: Samuel L. Andes, Attorney for Plaintiff, P.O. Box 168, Lemoyne, PA 17043 > ' ; John J. Connelly, Jr., Attorney for Defendant, P.O. Box 650, Hershey, PA 17033 ~ /..2.1(;9- i 1i , 1 ; , , i i j, .1t; Cz~ f! j ~~ - -, ,- ._-~, Ccc 'V '~ > ", ,p AU<:;C- . h!l :tj V.-j ,. " " r.\" ...,""'l(1 t ",,,.,"1 ~ .J':::U f1\JUL. }\HV1C;<'.Jd~Odd 3Hl .:i0 38U:,(}-U:nH - -"~'" ;"c","",~}-'!"-"", ~'<<::., ,.' "' ~ I'" ,-,- ." m'... r ~1iJ!I1~~ < _ ,_ '_, _ !IlW'II~rv~, ~!I _11111111"~'~ .. ORIGINAL ~"," -w NANCY AMIS, FORMERLY KNOWN AS NANCY A. REED, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANI PLAINTIFF v CIVIL ACTION - LAW NO. 2000-2123 CIVIL TERM MICHAEL D. REED, DEFENDANT IN DIVORCE DEPOSITION OF: MICHAEL D. REED TAKEN BY: PLAINTIFF BEFORE: KAREN C. ALBRIGHT, RPR NOTARY PUBLIC DATE: DECEMBER 1, 2004, 8:55 A.M. ~.' ., PLACE: r-' c:.? "', '-" -n rr1 cP .r::- LAW OFFICES OF SAMUEL L. ANDES 525 NORTH 12TH STREET LEMOYNE, PENNSYLVANIA APPEARANCES: LAW OFFICES OF SAMUEL L. ANDES BY: SAMUEL L. ANDES, ESQUIRE FOR - PLAINTIFF JAMES, SMITH, DIETTERICK & CONNELLY, LLP BY: JOHN J. CONNELLY, JR., ESQUIRE FOR - DEFENDANT . 2080 Linglestown Road · Suite 103 · Harrisburg, PA 17110 717.540.0220 · Fax 717.540.0221 · Lancaster 717.393.5101 ~-:'-"""''' I ~',~~'"-_-'f'--' I "'-~~"<-~-'-- , 1<'-"''- -0 o .." ::r.." f"nr-- -r,m :\~q (, J_ :',-::t~,,?; QB 'S~~ rn -\;>- ""-l ".~~ _.i':.," - cP 2 Q 1 2 NAME 3 MICHAEL D. REED 4 BY: MR. ANDES 5 BY: MR. CONNELLY 6 7 8 9 10 11 12 0 13 " . 14 15 16 17 18 19 20 21 22 23 24 25 0 WITNESSES EXAMINATION 3 1'5....."., 1-- -r ~" ~~,' I"'i,~ " w o o ~~t 3 1 STIPULATION 2 It is hereby stipulated by and between counsel 3 for the respective parties that sealing, certification and 4 filing are hereby waived; and that all objections except 5 as to the form of the question are reserved to the time of 6 trial. 7 8 MICHAEL D. REED, JR., called as a witness, 9 being duly sworn, testified as follows: 10 EXAMINATION 11 BY MR. ANDES: 12 13 14 Q record? A would you state your name and address for the Michael D. Reed. 1419 Holly Pike, Carlisle, 15 Pennsylvania. 17013. 16 17 18 19 20 21 22 23 24 25 Q A Q A Q A Q before? A Q , Your an attorney? Yes. You do litigation? Yes. Would you say that's your specialty? Yes. So you've certainly participated in depositions Yes. Have you ever been deposed? "'1 , ~ <, "... o Q o ~ 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 A Yes. 18 Q What was the date of your marriage? 19 A January 9, 1982. 20 Q And there were two children born of the 21 marriage? 22 A Yes. 23 Q Their names are? 24 A Miller. 25 Q And? 1- ~ o -"';:~v..' Q 0.'..\ ". '.... . . =--. ""'''- I 5 1 A Peter. How old is Miller now? Miller is -- If you know his year of birth, that would be He was born in 1982. So he's 22. And Peter is So he was born in 1984? '84, urn-hum. When did you and Nancy separate? September 5th, 1999. At that time immediately before your separation 13 where were you living? At 100 Moreland Avenue in Carlisle. 23 A 2 Q That's a single family residence? Correct. When had the two of you purchased it? July 1997. Do you remember what you paid for it? 205 thousand dollars. When you separated you moved out and she and 22 the children remained in the house? 3 A That's correct. Q Where did you go to live at that time? 4 Q A I went to live at a rental property at 58 5 sufficient. 6 A 7 20. 8 Q 9 A 10 Q 11 A 12 Q 14 A 15 Q 16 A 17 Q 18 A 19 Q 20 A 21 Q 24 25 "~ ,"~I 0",,'" ',. - ~ -..;;:-_.- Q, :"'" ",' " -- ^," w " -~ 6 1 2 Wilson Street in Carlisle. Q 'Relative to Moreland Avenue, about how far away 3 was that? 4 5 6 7 8 9 A Q A Q A Q About three blocks away. And did you subsequently purchase a home? No. Where you live now you do not own? No, my wife owns the home. How long did you live at Wilson Street 10 approximately? 11 12 13 14 15 A Q present A Q Until September 12th, 2001. What occurred then? To where did you move your 1419 Holly pike. During the time that you were married to Nancy, 16 did the two of you own any other residents prior to this 17 one? 18 19 A 20 address? Q 21 A Yes. Where was that? I don't need the street Well, there were two. The first residence that 22 we owned together was Colonial Village Green townhouse in 23 Aston, Pennsylvania. 24 25 A Q Where is Aston, what part of the state? It's in Delaware County outside of , ----------'---- o ~-"_. Q ~".' w .",*,,,,, 7 1 Philadelphia, when I was practicing in Philadelphia. Then 2 we moved back to central Pennsylvania in 1986, and 3 purchased a house at Pomfret Street in Carlisle. 4 Q And you lived there until you purchased this 5 property in July of 1997? 6 A That's correct. 7 Q When after you separated when did you -- strike 8 that. 9 After you separated did you and Nancy have any 10 discussions about a financial settlement and a divorce 11 directly, or were those discussions through attorneys? 12 A I had some very limited discussions with Nancy 13 within a few days before I left the home trying to explain 14 to her what I felt the financial realities of our 15 situation were, and she felt that she needed to talk to an 16 attorney and I respected that opinion, so we didn't really 17 have any further discussions other than occasional phone 18 calls where we would be talking about our kids or 19 something else, and things would be said, but nothing 20 substantive that I remember. 21 When was the first time you consulted an Q 22 attorney to recent you in this matter? 23 Before I moved out. I consulted with Don A 24 Kissinger I would say in either July or August of 1999. I 25 don't recall. , "I ~ ,~-- .^..,,',.." * 1'1,.,'~ ' w o "W'l" 8 1 Q Did you retain him at that time to represent 2 you in this matter? 3 A Yes. 4 Q When was the first time that you were aware 5 that Mr. Kissinger had any contact with your wife or an 6 attorney on behalf of your wife? 7 A I don't recall when that would have been. 8 Q Would it have been after your separation, do 9 you believe? 10 A Yes, I believe so. I believe Nancy -- I don't 11 know. You'd know better than I, but I don't think Nancy 12 retained you until after our separation. 13 I represent her now. Was she represented by Q 14 any attorney before me? 15 No. 18 A Q had any me? A Q 21 of settlement regarding how you proposed that the marital 22 assets be divided? 23 I'm sure we must have, but I don't recall at A 24 this point. 25 Do you remember seeing this letter? Q 'F -~ = o o o 'W~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~~ ~ 9 A Yes. Q Would you agree that this was the first letter dealing with proposals or discussions regarding an economic resolution? A I don't have any memory of any previous letter, so I assume that's right. Q And I assume this letter was submitted with your authorization that you had discussed this proposal with Mr. Kissinger? A That's correct. Q Subsequent to that, was there a meeting that you attended back here at my office with Mr. Kissinger, myself and your wife? A Yes, we did have that meeting. Q Do you remember about when that took place? A About March, 2001. Q Were there discussions at that meeting about a financial settlement? A Yes. Q Between the date of this letter, April of 2000 and some time in early 2001, do you recall whether there were other discussions about a settlement in terms of did Nancy or I respond to this letter with a counterpropos,al or an acceptance or a rejection, or did Mr. Kissinger make other proposals, to your knowledge? '1-.. ^,. - o o -~, 10 1 I don't remember at this point. A 2 So the -- I'm going to call that meeting -- and Q 3 my records indicate it may have been as early as January 4 of 2001, would that be possible? 5 NO, I think there was a meeting -- my calendar, A 6 which I did look at before I answered the interrogatories 7 that you sent, I think showed -- and the interrogatories 8 are more correct than my current recollection because I 9 had my calendar in front of me at the time, but they have 10 the actual date of those meetings. I believe one was in 11 March of 2001 and the second meeting was in January of 12 2002. That's what I recall, but I could be wrong. 13 Q Okay. Let me get your answers to 14 interrogatories, because maybe that will help us. 15 Q Yes. You referred to a meeting in January of 16 2001? 17 A I'm sorry. 18 Q And one in March of 2002? 19 A So I had it reversed. It was January 2001 and 20 March 2002. 21 Q At the meeting in January of 2001, what do you 22 recall was discussed? 23 A I recall that there was initial discussion 24 about documentation of certain things, especially relating 25 to my law firm and the interests in the law firm, whether ~, o 1"'1\ W ",",,",,,,, I 11 1 you had enough documentation at that point, which I think 2 you were still requesting some further documentation of 3 those interests, and then I recall that Don Kissinger sort 4 of initiated a conversation where he tried to go down this 5 list of assets. I don't know. I don't know that it was 6 the same list that was in Exhibit 1, but he went down a 7 list of things to try to see what we had an agreement on 8 and what we didn't have an agreement on. That's what I 9 recall. 10 Q How did that go? 11 A What I recall from that is that there was a 12 discussion about the value of the law firm assets and the 13 value of the house, and that we knew the mortgage on the 14 house was approximately 170 thousand dollars, and that we 15 discussed the value of the house as being somewhere 16 between 225 and 230 thousand dollars, and there was 17 general agreement about those things, I thought, among the 18 parties at the meeting. 19 And then we went on to -- and we talked about 20 my pension, we talked about an inheritance from her mother 21 that Nancy had received but that was in joint names --had 22 been put into joint names before we separated, and I think 23 we acknowledged at that meeting and certainly after that 24 meeting that we would not press to have any interest in 25 that fund, that she could keep that. But we talked about ., . ,r ~",;' w ~_.. ~. ~ 0.,'\ ,'.- '''''"':"--1 12 1 those things and it seemed to me as though the only thing 2 left in dispute, in the property settlement was, A, the 3 documentation as to what ,the law firm was worth, and B, 4 what percentage of my pension funds would be distributed 5 to Nancy, that there would be some amount that she'd be 6 getting from my pension, but I think our initial offer had 7 been 25 percent. And there wasn't a discussion of 8 percentages I don't think at that meeting, but there was a 9 discussion that some amount would have to come out of the 10 pension to make the property settlement final. 11 And then we talked about alimony. And alimony 12 is where the discussion kind of broke down and I think you 13 indicated at that point that and Nancy wasn't willing 14 to talk about anything other than indefinite alimony 15 payments, and I was not willing to agree to that, and so 16 the meeting kind of ended on that note that we couldn't 17 reach an agreement on alimony. And I think you made the 18 comment maybe it's too early and we need to give this some 19 time, or something like that. 20 You mentioned there was two items, a pecentage Q 21 of your pension, and what was the other one? 22 The valuation of the law firm assets, the A 23 documentation of that valuation. We were giving you 24 figures where I think at that point we had gotten maybe a 25 scratch paper from our managing partner and you wanted Q ~v_~.. 0".,.\ , . , o~ '~...-, ~ 13 1 further backup, which we ended up giving you after the 2 meeting, I believe. 3 Q There was basically three things still to be 4 done. There was a determination of what percentage she 5 was to get from your pension funds? 6 A Right. 7 Q There was exchange of value of your interest in 8 the law firm and its related entities? 9 A Right. 10 Q And I guess basically the term of the alimony, 11 but the whole question of alimony to some extent was open? 12 A Yes. 13 Q But you're certain in your recollection that we 14 discussed the value of the house? 15 A I have that recollection, yes. 16 Q From then until the meeting of March in the 17 following year 14 months later, were there, to your 18 knowledge, further negotiations or discussions? 19 I believe there were exchanges of A 20 correspondence. I'm not sure I would characterize the~ as 21 negotiations, so I guess there were discussions going 22 through the attorneys, and at some point I retained John 23 Connelly and had him replace Don Kissinger. 24 Q Do you remember when that occurred, 25 approximately? - ~I ~~~ o ~---- c.",,' ~: o 14 1 A Approximately the end of -- late in the year 2 2001. 3 Q So the meeting in 2002 was not attended by Mr. 4 Kissinger, it was attended by you and Mr. Connelly? 5 A That's correct. 6 Q With these discussions or letters that you say 7 were exchanged, was there any discussion, to your 8 knowledge, of value of the house? 9 A I've looked through those letters that I have 10 copies of, and I don't see anything in there that where it 11 was specified in the letters, no. 12 Q Was there ever any, to your knowledge, any 13 dispute or -- strike that; dispute is the wrong word. Was 14 there any negotiation after that meeting in January of 15 2001, and before the meeting in March of 2002, regarding 16 the value of the house? 17 A No. 18 Q The meeting in March of 2002, again, you 19 attended with Mr. Connelly, and Nancy and I were there? 20 That's correct. A 21 Q Anybody else? 22 A No. 23 And where did that take place, if you recal~? Q 24 A Here. 25 Q What was the substance or what WaS the -- '1 :" Q 0', -iE::.. ,,; c' -,~ 15 1 describe in your words what took place at that meeting. 2 What, I recall at that meeting is that John A 3 started off by trying to summarize where the parties had 4 been up to that point, and that we sort of discussed the 5 fact that there was -- that we weren't seeking anything 6' from the inheritance, that the law firm assets, which by 7 that time you had all the documentation on, and the house, 8 the equity in the house, would essentially offset each 9 other because they were both in the range of maybe 50 to 10 60 thousand dollars, and that if we could make an 11 agreement as to the percentage of the payment from my 12 retirement or pension fund, that that should conclude 13 everything on the property side of the equation, and then 14 we still needed to discuss alimony, which we did again 15 discuss and still reached no agreement at that time. I 16 think there was still disagreement about the term. I 17 believe Nancy still wanted indefinite at that point. 18 At that meeting were specific values discussed Q 19 regarding the house or the equity in the house? 20 I don't believe as much was discussed at that A 21 meeting about specific values. I think what was discussed 22 was that the value in the house, the equity in the house 23 would basically be offset against the value in the law,: 24 firm, that that would sort of be a wash, that we weren't 25 claiming any interest in the inheritance money, and that , ~] I' " . o o o ~.~~~""'l 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 16 therefore the only thing left really to be carved up was my retirement. Q So at this point the matters that were open were the retirement division? A Right. Q And the alimony? A Right. Q Do you recall whether there were discussions about an amount of alimony as well as the term? A There probably were, but I don't recall specific amounts. I think there were discussions about amounts, but I don't remember what they were. Q Do you remember whether there was any agreement reached regarding the amount? A Not at that time I don't believe there was. Q Term was still a problem? A Right. Q After that there were no further meetings that you and Nancy and the attorneys had together, is that correct? A That's correct. Q What in your recollection and your review of your file, what happened next with regard to the divorce? A Well, the next thing that I remember is that I did have a conversation with Nancy shortly after that .' , ~ ^.'...:', W "'~_. Q Q ~ "~" 'I 17 1 meeting where we were having a discussion just about our 2 kids or something, and I think Nancy said or I said it's 3 too bad we can't get this divorce wrapped up or finalized. 4 To which I said, you know, the problem is that you want 5 indefinite alimony and apparently that's not negotiable 6 for you. And Nancy said, oh, that's negotiable. And I 7 said -- that was like a light that went on in my head 8 oh, okay, maybe we can get this resolved then. That's 9 when we began to talk -- I began to talk to my lawyer 10 about how we have might negotiate that. 11 Q Where did that discussion with Nancy take 12 place? 13' A On the phone. 14 And as a result of that what you pursued or Q 15 both parties pursued more negotiations in an effort to , 16 resolve everything including the alimony? 17 Yeah, I know at one point we came back with an A 18 offer that had two options in it. One was to keep the 19 alimony at the level it would be after -- my younger son 20 Peter was still a dependent at the time we were having 21 these discussions, and was 18 years old but was graduating 22 from high school that year and would be moving out. And 23 this would have been 2003. Yeah, 2003. And during those 24 discussions it was talked about that after he left and the 25 child support was removed, the alimony would be a certain ~, l ~ " Ce,. '--, """-~-' " ~ Q '"~\ 18 1 amount. And I think the offer that we made at that point 2 was -- or at some point shortly thereafter was either 3 indefinite alimony at that lower figure, or we would 4 continue the alimony for seven years at a figure that 5 would be the same as it was when it included the child 6 support. And that later offer is the one that ended up 7 being accepted. 8 So do you remember about when that offer was Q 9 made? 10 A No. 11 Q You eventually filed a petition to bifurcate 12 the divorce, is that correct? 13 That's correct. A 14 Q Do you remember about when that was? 15 That was some time in late two thousand -- I'm A 16 getting confused now. I want to take back -- I want to 17 revise something I said before. 18 Q Sure. 19 I think that the discussion I had with Nancy A 20 about this is negotiable, that was in 2002, shortly after 21 our meeting in 2002. And then the petition to bifurcate 22 was filed in late 2002, and then some time in 2003 the 23 final settlement was reached. But I believe the offer "as 24 far as the two options, the indefinite at the lower amount 25 or the seven years at the higher amount, I believe that ,. . ft", W o o : ""-0"" ~=._I 10 19 1 was made some time in 2002, probably before the petition 2 to bifurcate, but I'm not certain of that. 3 Q And eventually both sides came to an agreement, 4 and we then reduced the agreement to writing? 5 A Correct. Q And that process took, if I recall, some time to agree upon the language and all of that, is that correct? A Yes. Q The agreement is dated May of 2003. Do you 6 7 8 9 11 have some idea how long before that we had reached an 12 agreement in principal that it took us to come to the 13 14 final drafted written agreement? A I'd say roughly January or February of 2003 15 there was an agreement in principal, and it took that long 16 to hammer out the final terms. 17 Q During this time other than the meeting in 18 January of 2001, attended by you with Mr. Kissinger, in 19 which you tell us that there was some discussion of the 20 value of the house, from that point until this agreement 21 was signed in May, were there any further discussions, ,to 22 your knowledge, between you and Nancy about the value of 23 the house or the equity of the house? 24 A I'm sorry, between January 2001 and when? When 25 is the end date of that? ,., ~I I) ...:::!!_-. o o ;- 20 1 Q Let's go back and let me change the question. 2 A Okay, 3 Q From the time you first talked with Nancy about 4 a separation and/or divorce, which must have been -- 5 A July of '99. Right. Until this agreement was signed in May, 6. Q 7 other than the meeting with Mr. Kissinger and I here at my 8 office in January of 2001, were you party to any other 9 discussions with Nancy about the value of the house or the 10 equity in the house? 11 A Two, that I can recall. One was the one that 12 I've already mentioned to you shortly before I moved out 13 when I tried to explain to her what I thought the equity 14 in the house was, and we discussed it for a while, but 15 then she said I don't want to commit to anything without 16 talking to a lawyer, and I said fine. That was shortly 17 before I moved out in September of '99. And I think it 18 was in the Spring of -- I know it was in the Spring. I'm 19 not sure if it was 2002 or 2003. I do remember a 20 conversation with Nancy where she had received an 21 assessment value or an assessed value of the house from 22 the county, they had done a reassessment, and that my 23 vague recollection is that she was unhappy with that or 24 that she thought it was too high, or something like that. 25 Did she tell you what it was? Q ~ '1-, " 1'- "'"",'.,1c ' .' 0,'.' '.'t, ',' '" ..' 0",' " ,- """"". I~ 21 1 A No. I looked it up then on the website of the 2 Cumberland County Courthouse. 3 Q Do you know what it was? 218, in rough. I don't exact, but roughly 218. And she told you she thought that was too high? That's my vague recollection. I'm not positive 7 that she used those words too high, but she just indicated 4 A 8 she had gotten an assessment or our taxes were going to go 5 Q Any other times you discussed anything about of the house or the equity of the house with No. 15 of your attorneys or anyone on your behalf discussed it, 6 A 16 other than the meeting with Kissinger that you told us 9 up. Q the value her? A Q 17 about, discussed the value of the house with Nancy or 10 11 12 13 18 myself or anyone on behalf of Nancy? 19 A Except that I think it was implicit in the 20 conversation that we had when John Connelly was here also, 21 the second meeting. I mean, I think it was discussed ,in 22 that the value of the house equity washes against the 23 value of the law firm. Not that a specific number wa~ 24 discussed, but just that those two sort of canceled each 25 other out. And that was discussion briefly at the -I' Q o o ~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 22 beginning of that meeting. Q That was the March '02 meeting? A Right. Q And you may not want to answer this, but I'll ask you to give you an opportunity to answer it or tell me you're not going to. Did you have discussions with Mr. Kissinger or Mr. Connelly about the value of the house? Did you tell them what you believed the value was or did they tell you what they believed the value was? MR. CONNELLY: I don't have a problem with that answer. THE WITNESS: Yeah. BY MR. ANDES: Q Let's go back at the beginning. I assume you first had those discussions with Kissinger? A Correct. Q What did you tell him the house was worth? A I told him that I thought it was worth between 225 and 230. Q And that would have been about the time that you retained him? A Q A Q Right. So some time in perhaps the Fall of 1999? Urn-hum. Did you have any other discussions with him I ' 0..... " -..-:'--..' Q c ----I 23 1 about the value of the house? 2 A I'm sure we continued to discuss it, but 3 nothing different than that. I never changed my opinion 4 during the time he represented me. 5 Q Did you have discussions with Mr. Connelly when 6 he came on board? 7 A Yeah. 8 Q Was it to the same effect? 9 A I think when I met with John I might have said 10 that it's possible it had gone up slightly, that maybe it 11 could go for 235, but I still felt it was in that range 12 somewhere. 13 Q And any further or subsequent discussions with 14 him about the value that you recall? 15 A Just as we would calculate what we were going 16 to do in negotiations, we would occasionally revise it at 17 that time, but nothing changed in the my estimation. 18 Other than your attorneys and Nancy and perhaps Q 19 myself, did you discuss with anyone else the value of the 20 house? 21 With my current wife. A 22 And when were those discussions? I mean, are Q 23 we talking about something fairly recent or are we talking, 24 about something back in '99 or 2000, 2001? 25 Not in '99, but I would say by 2001 and 2002, A I. . ' Q 0',' ,'. i~1 ~;: '-~'" 10 11 24 1 when we were talking about these negotiations, my wife 2 happens to be a lawyer so I talked to her as well. 3 Q You were romantically involved? You and your 4 present wife were together before you were married, at 5 least -- maybe not living together, but at least in terms 6 of together in terms of talking about these things? 7 A We were living together in November of 2000. 8 Q It was in that context that those conversations 9 may have taken place? A Yes. Q Did you express an opinion as to a value -- did 12 she have input into formulating your opinion of the value, 13 14 15 I guess is my question? A NO, not really. She didn't know the area. Q Were you familiar with the area? I mean, 16 you've lived there for some time? 17 18 19 A Yeah, I lived there on and off since 1982. Q I take it you were Not in that house. I should clarify. Nancy A 20 and I first lived in a couple of apartments in '82 and '83 21 in Carlisle, and then we went to Philadelphia for two, 22 years and came back. 23 24 far from this house? Q And you lived on Pomfret Street, which is not 25 A Correct. , i" I"i"" ,. ' ,', \'. ~ ,\1) .r,'i\ ,',\ ~ "~~"-l 25 1 2 3 Q A Q A couple blocks? Three blocks. I take it during the time you lived there were 4 you somewhat familiar with the market, you know what 5 houses when they came up for sale, how quickly they sold, 6 that sort of thing? 7 8 9 A Q A Yeah. Did you ever have this house appraised? I believe it was appraised in connection with 10 our mortgage when we bought the house. 11 12 13 Q A Q In '87? '97. '97. Did you have a copy of the appraisal or 14 did the bank -- 15 16 17 18 19 20 21 22 23 24 A Q A Q A Q A Q A 25 then? Q Currently? I'll say did you have a copy? Yes, I got a copy. At the time it was done in '97? Yes. Do you remember who did it? No, I don't. Do you still have a copy of it? Possibly. Do you remember what the appraised value was Q .:f'.'1'> V 0,'-',<' , ' ~~_~nl 1 26 A I think it was roughly -- I'd be guessing, but 2 I know it was more than 205 and I know it was less than 3 235, I'll say. Somewhere in that range. 4 It was at least as much or something more than Q 5 your purchase price? 6 7 8 A Yes. Q Did you have it appraised after that? A No. Nancy might have. I don't know whether 9 no, we didn't refinance it. Well, we did refinance it 10 once. 11 12 13 When was that? Q A We refinanced in probably late '98 or early '99 to get a lower rate. But I don't recall whether it was 14 appraised again or not. It might have been. 15 16 17 Q Was it the same bank or a different bank? A Same bank, I think. Q So it's possible they were willing to accept a 18 prior appraisal? 19 20 A Yes. 21 that? Q Which would have been about two years before 22 A I don't know. I just don't remember whether it 23 was appraised again or not. 24 25 time? Q But you didn't have it appraised any other , . I!"'!,,', '," ,~',' w ~,' ~"',,I\!!, V 0,', I:" _,' -"-"1 1 2 27 A No. Q , And to your knowledge, no one else had it 3 appraised? 4 5 A No. Q Did you talk to any realtors or any appraisors 6 or any people who you fell had particular knowledge in the 7 field as to the value of the house at any time between 8 1999 and 2003? 9 10 A No. 11 been sold? Q How is it that you learned that the house had 12 13 14 15 16 A At my son's high school graduation my son told me Mom sold the house. Q And that would have been, what, June of 2003? A Yeah. 17 it? Q And what did you do then? Did you look into 18 A No. I said, great. I knew that she had told 19 me that she wanted to leave Carlisle and go to school in 20 Baltimore, and that she was going to try to sell the 21 house, and I knew that she was going to put it on the 22 market shortly after we reached our agreement. And so I 23 was happy for her that she sold it quickly. 24 25 Q When was it that you learned the sale price? Late July of that same year. A , ,', ^,." ~ ~\ ~ 0.,'." ' . 28 10 11 12 13 1 Q A Q A Q A Q A Q A phew. Q A How did you learn of it? , In a phone conversation with Nancy. And she told you the sale price? Yes. Did that come as a surprise to you? Yes. Did you express surprise to her? Yes. What did you say, if you recall? I think my exact words were something like, P-H-E-W? Right. And because of the way she had said it 14 to me, what she said was, I couldn't tell you this before 2 3 4 5 6 7 8 9 15 but I guess I can tell you now what the house sold for. 16 And I said what. And she told me the price, and I said, 17 phew, and then she kind of chuckles. And that disturbed 18 me a little bit that she chuckled about it. I said, oh, 19 you think you put one over on me. I think were my exact 20 words. 21 22 23 24 Q A Q A She said? I didn't put anything over on you. And you said? I think we dropped the subject at that point. 25 I said, fine, whatever, you know, I just let it drop. , - r1',., , , ~ o "'''''1\ W I ''''~ 1 29 Q Was it your opinion in May of 2003 that the 2 house was worth,something like 230, 235 thousand dollars? 3 4 A Yeah. Q And it had not changed significantly since you 5 separated when you thought it was worth 225 to 230? 6' A I thought realistically she might be able to 7 get what it's worth and what it might draw on the 8 market might be two different things. You're asking what 9 I thought it was worth. I thought it was worth 230. But 10 I thought it might bring on the market, because of its 11 unique location and it's kind of a distinctive house, I 12 thought it might bring 250. But I would said that that 13 14 15 16 17 18 was about the upper limits of it if I was asked. Q That was simply your opinion? A Yeah, that's all it was. Q You hadn't consulted anyone? A No, not really. Q In your answers to request of production, 19 request for the production of documents, you refer to the 20 realty transfer tax statement of value which was filed at 21 some point by your wife establishing a market value of 22 $229,278. 23 24 25 A Right. Q Do you know who prepared that? A I believe Paula Light prepared that. "I 0.'.,' . ;, '~ ,0 0: -~~'"'" 30 1 Q Paula Light was the attorney who recorded the 2 deed for your wife? 3 4 5 6 7 8 A Q A Q A Q I believe that's correct. And she is in your firm, is that correct? That's correct. , I'm sure you had no hand in preparing this? You're absolutely correct. Were you aware of this being filed before it 9 was filed? 10 11 A Q No. Or aware of it existing before you saw it at 12 the courthouse? 13 14 A Q No. Do you know how that fair market value was 15 arrived at? 16 A Only from what I read on the form itself that I 17 guess it was -- they used the assessed value and applied 18 some percentage to it. 19 Q According to the form, which you can look at 20 it, it's attached to your petition, there's an assessed 21 value multiple -- what's in the middle column? , 22 23 24 25 A Q A Common level ratio factor. Do you know what that is? I have no idea. Q Is it your contention that this document ""i o o ~ ~ . --r 31 1 actually establishes the fair market value of the 2 property? ' 3 A I think it's a document that Nancy or her 4 representative filed with the Court representing what they 5 thought the value was pretty close in time to the sale, 6 so, yeah. 7 Q And you think that was an expression of her 8 opinion as to the fair market value, not just a 9 calculation in accordance with the form and the law that 10 requires the form? 11 A Well, I think the form speaks for itself, and I 12 don't really, you know, want I don't know what her 13 opinion was other than what she testified at her 14 deposition a week or so ago. 15 Q You also say in your answer to the request for 16 production of documents I had requested copies of all 17 documents which you claim or believe support the 18 statements made in paragraph 12 of your petition. And you 19 answered, and I will read your answer: Any documents 20 supporting the allegations raised in paragraph 12 were to 21 be the subject of subpoenas to the plaintiff respondent, 22 which would be Nancy and other relevant parties, prior to 23 hearing currently not in the possession of the defendant 24 petitioner. Would those be the documents that were marked 25 as exhibits at the depositions that were taken in your I r Q 0/',.,' '. ' 0,',.,..\ '. , 1 32 attorney's office a week ago? 2 A Yes. 3 Q Any other documents you are aware of that 4 support the statements you made in paragraph 12? And I'll 5 let you look at paragraph 12 if you want? 6' Yeah, the only thing I know of other than the A 7 documents that were used at the deposition -- and these 8 are not documents that I have ever seen or had my hands 9 on, but I've been told they exist -- and that is a diary 10 that was kept by Connie Day, who was a tenant of Nancy's 11 during the last year Nancy lived on the property. 12 13 Q Who told you that it exists? A My wife told me that it exists because she had 14 a conversation with Connie Day about it. 15 16 17 18 19 20 21 22 Q That this diary exists? A Yes. Q And you've not seen the diary? A I have not. Q Have you been in contact with Connie Day? A I have not. Q Has anyone on your behalf? A My wife talked to Connie Day about it, and the 23 information that I got from my wife about what Connie Day 24 said is what we put in the answers to interrogatories, 25 that I believe we put that in the answer, that Nancy had ~'"""""'I - ^ ~ o o 33 1 told Connie Day some time in I believe it was early 2003, 2 that she had met with the realtor Mary Fitts and that the 3 house was worth a lot more than she had originally 4 thought. 5 Q I think I'm reading the correct paragraph in 6 your answers. Connie Day, a tenant at 100 Moreland Avenue 7 of residence was told by the plaintiff respondent in late 8 October or early November of 2002, that she had spoken 9 with a person who was interested in buying the residence. 10 The plaintiff respondent decided to secure a realtor as 11 her agent for sale and became aware at that time that the 12 house was worth a great deal more than she initially 13 believed. 14 Is that what Connie Day told your -- when you 15 say your wife, you mean your present wife? 16 Correct. 19 A Q A School. Q A Q A not. Q Has anyone on your behalf seen this diary? 20 Is that where someone contacted her? 21 My wife contacted her. 22 Is it your intention to have her testify? 23 I'm not sure at this time whether we would 'or 24 25 o o 0',"...,. " . -- 34 1 A No. Is it your understanding that there are entries 3 in the diary that reflect or confirm any of this? 2 Q I'm not positive because I haven't seen it. 5 All I know is that Connie Day told my wife she thought 4 A 6 there were entries in her diary that would support her 7 recollections, but that she would need to check it, and 8 that's as far as it's gone. 9 Q Is there anyone else that's provided you with 10 information as to any comments or statements that Nancy 11 has made regarding the value of the house? 12 13 A Q No. So your information about her opinion or her 14 belief as to the value of the house come from what you 15 talked about earlier, one or two discussions you had with 16 her, discussions at these meetings with the attorneys? 17 18 19 20 21 22 23 24 25 A Q A Q A Q A Q during the Right. And these comments by Connie Day? And Nancy's deposition. And what she said at her deposition? Right. Nothing else? No. You say in paragraph 10 of your petition, negotiations of the property settlement , 0...,.,,'..',"', ' , o o --1 1 35 agreement the parties estimated the fair market value of 2 the house in those negotiations to be approximately 229 3 thousand dollars. The source of that information is what 4 you just mentioned? 5 Yes. I think the 229 thousand dollars figure A 6 was taken from the statement of value that's attached, but 7 I think in reality the discussions between the parties had 8 been that it was some where in the range of 225 to 230. 9 Q In paragraph ten, the approximately 229, that 10 figure probably comes from the document -- 11 The thing that was filed at the courthouse A 12 shortly after -- 13 14 15 With the deed, okay. Q A the deed transfer. Q At the time the property was sold to the Stets 16 (phonetic)? 17 18 A Right. Q Other than the information you have from Connie 19 Day, do you have any information to support your 20 contention that Nancy had information that which was 21 unavailable to you regarding the house? 22 Well, two things led me to believe that in A 23 retrospect, not at the time I heard them, but later in 24 considering what I heard from Connie Day, and then in 25 considering these two conversations I had with Nancy. , ~ 0" -~'-:- -' ;,\\ " o o "~ ~ 36 1 There was a conversation that I had with Nancy in, I 2 believe it was April of 2003 before the final documents 3 had been signed, either late April-early May of 2003, and 4 the substance of that conversation was Nancy had returned 5 from a trip to Europe and had signed a property -- or had 6 signed a property settlement agreement, an alimony 7 agreement -- whatever that's called, I forget what the 8 name of that is, whatever that final agreement we signed 9 was, she had signed an earlier version of that before she 10 left on her trip to Europe and that had been sent to John 11 Connelly by you signed by her. And I think her 12 expectation was that that was the last act she needed to 13 perform and that it was a final deal at that point. 14 Because when she came back from Europe she called me 15 about, I think just to tell me she was back, and she 16 mentioned that she hadn't yet received the final version 17 of the agreement with my signature on it. And she said, I 18 can't seem to find out what's going on with that, do you 19 know. And I said, yes, we asked for an additional clause 20 to be added to it, and she said -- she got very angry with 21 me and said I thought we had a deal, you know -- or she 22 said we had a deal. I said, no, we don't have a deal 23 until it's signed, and there was one further clause that I 24 asked to be added and your attorney has it, talk to him 25 about it. And I tried to calm her down, and she just , Q 1 2 3 4 5 6 7 8 9 10 11 12 0 ~ ':.., ","j 13 14 15 16 17 18 19 20 21 22 23 24 25 () 37 remained very angry with me throughout the thing. So that conversation ended. Later on after I found out what the house sold for and the circumstances and how quickly it sold, I came to believe that that indicated to me that maybe she had either already signed the listing agreement or was aware that the buyer was there and she was anxious to get a deal done with me so that she could transfer the house as quickly as possible. So that was one thing that led me to believe that, and that's just based on a conversation and what I later found out. The second thing was her comment during the conversation in July that I guess -- I couldn't tell you this before, but I guess I can tell you now, which I interpreted as you knew something a long time ago that you're just now feeling free to tell me. I had no idea whether that occurred before or after she had signed the divorce settlement. Q The conversation took place after she signed the divorce settlement? A The conversation took place in July of 2003, three months later, but from her saying I couldn't tell you this before, I had no idea how long before was, sa I suspected that it might have been before she signed the divorce agreement. Q a 0.".'\ ',; _I <,?'!!\>;,- 38 1 Q So I guess what -- in so many words what you're 2 saying is you don't believe the testimony of Mary Fitts 3 about the timing of the discussions between Mary Fitts and 4 Nancy about the value and sell price of the house? 5 A I'm not saying that I don't believe them at 6. all. I believe Mary was trying to be truthful. I think 7 there might have been some -- Mary said that she was aware 8 the buyer was out there and that this house would fit 9 their needs, and she made the comment and the gesture 10 during the deposition that she put that back in her head. 11 And I think that in addition to putting it back in her 12 head she might have mentioned to Nancy, I have a buyer who 13 will possibly go over 300 thousand dollars. I believe 14 that might have occurred. I don't know. Mary didn't 15 recall that kind of a conversation. In fact, said that it 16 didn't happen, but I don't know for sure whether that 17 happened or not, and I'm not -- I don't think that's 18 important whether that happened or not, frankly. 19 You're seeking to modify the alimony in this Q 20 matter in what way? 21 The clause that was the additional clause I, was A 22 telling Nancy about when she got back from Europe was the 23 clause that I had asked to be added, and I drafted it 24 myself, I recall, where we said that if -- the agreement 25 was based on an assumption about her earning capacity, and " Q .' 1 2 3 4 5 6 7 8 9 10 11 12 0 13 14 15 16 17 18 19 20 21 22 23 24 25 0 =:J' 39 that her actual gross income exceeded $40,000, I believe it was, in any given year during the agreement, that the following year I would be entitled to a reduction of one-half of -- by one-half of any amount that that income exceeded $40,000. So my contention is that the sale of the house created actual gross income, which in fact she reported on her tax return even though it was excluded, it was actual gross income, that's my interpretation of actual gross income, to her of roughly 133 thousand dollars, she listed as 138 because she had the original purchase price wrong on her tax return. So it would be my contention that the difference between -- well, that that 133 thousand dollars is obviously in excess of $40,000, and therefore, that my alimony payments for 2004, since she received that in 2003, should be reduced by one-half of the amount that that exceeds $40,000. Q So your alimony payments for the year 2004? A Would be wiped out. Q Should essentially be absolved? A Correct. Q Is it your contention that that would have any effect after the year 2004? A I believe it should carryover to whatever, extent that that amount applies. In other words, because it says -- if you let me read the clause I can tell you , , 0, ,.,._,."," I, '.' 0, , '. ,I '.', o "'~,~ 40 1 . what I think about it. 2 Q 'Yeah" here. 3 A It says reduction that will apply in the year 4 parens A close parens -- following the calendar year 5 wife's gross income exceeds $40,000, I think that allows 6 it to apply more than one year. Here in this case we 7 have -- if she made 133 thousand dollars, she made 93 8 thousand dollars over and above 40 though, and half of 9 that 93 thousand dollars should be the reduction in my 10 alimony payments. And that should apply in 2004, and then 11 whatever portion of that's left over should apply in 2005. 12 Q Have you done a calculation of what portion of 13 that income would have resulted or would have occurred had 14 she sold the house for what you believe it was worth, say, 15 235 thousand dollars? 16 Well, that portion of it would have been -- if A 17 she had sold it for 235, her actual income on that would 18 have been 30 thousand dollars, so it would have been less 19 than 40 thousand. 20 But it's your contention or your suggestion, Q 21 here that that carries over, so if she has this bubble of 22 income in 2003 from the sale of the house you should be 23 able to extend that into 2004? 24 If she had made a million dollars on the sale A 25 of the house I'd want it to continue. I don't think the 1'- Q r..~_li ' ,'~i 0',,- ~. .- C-=~I 'I 1 2 41 principal is any different here. Q My question isn't what you want, I can guess 3 what you want. I'm asking is it your contention that the 4 language in this paragraph allows a carryover? 10 11 12 13 I think that carryover issue, this language is 5 A 6" not that clear because it just says parens A I'm not 7 sure -- I contend that that means it can be applied in 8 more than one year. But I can see how you could read it 9 the other way. Q And you drafted it? A That's correct. MR. ANDES: That's all the questions I have. MR. CONNELLY: Give me a minute. I want to 14 talk to him. 15 (Discussion held off the record.) 16 (The deposition was concluded at 9:50 a.m.) 17 18 19 20 21 22 23 24 25 Q o .0 -....., 42 1 COUNTY OF CUMBERLAND SS 2 COMMONWEALTH OF PENNSYLVANIA: 3 I, Karen C. Albright, a Notary public, 4 authorized to administer oaths within and for the 5 Commonwealth of Pennsylvania, do hereby certify that the 6' foregoing is the testimony of MICHAEL REED. 7 I further certify that before the taking of 8 said deposition, the witness was duly sworn; that the 9 questions and answers were taken down stenographically by 10 the said Reporter-Notary Public, and afterwards reduced to 11 typewriting under the direction of said Reporter. 12 I further certify that said deposition was 13 taken at the time and place specified in the caption sheet 14 hereby. I further certify that I am not a relative or 15 employee or attorney or counsel to any of the parties, or 16 a relative or employee of such attorney or counsel, or 17 financially interested directly or indirectly in this 18 action. 19 I further certify that said deposition constitut s 20 a true record of the testimony given by the said witness. 21 IN WITNESS WHEREOF, I have hereunto and 22 this lOth day of February, 2005. 23 24 25 'u LIUL KAREN c. ALBRtGHT. NotIIry PulJllo ell-- ,.l" "'""!"l">..'r, ......uDh'lnCounty ,;, It 2008 - , r o 20:19 23:25 33:8 accepted [I] D.REED 18:7 22:11 31:]5 31:19 -$- 2003 [IS] 17:23 accordance[l] 31:9 32:25 -B- $229;278 [I] 29:22 ]7:23 ]8:22 19:10 According [I] 30:19 answered [2] 10:6 ]9:14 20:19 B[I] $40,000 [5] 39:1 27:8 acknowledged [I] 31:]9 12:3 27:14 29:1 33:1 backup [IJ 39:5 39:13 39:16 36:2 36:3 37:21 11:23 answering [I] 4:]2 13:1 40:5 39:15 40:22 act [I] 36:12 answers [5] 10:13 bad [I] 17:3 2004 [6] 1:13 39:14 action [2] 1:4 29:18 32:24 33:6 Baltimore [I] 27:20 -&- 39:17 39:22 40:10 42:18 42:9 bank [4] 25:14 26:15 &[1] 1:21 40:23 actual [6] 10:10 anxious [I] 37:7 26:15 26:]6 2005 [2] 40: II 42:22 39:1 39:6 39:8 apartments [I] 24:20 based [2] 37:10 -'- 205[2] 5:20 26:2 39:9 40:17 APPEARANCES [I] 38:25 218[2] 21:4 2]:4 added [3J 36:20 1:17 became [I] 33:11 '02[1] 22:2 22[1] 36:24 38:23 applied [2] 30:17 began [2] 17:9 5:6 '82[1] 24:20 225[4] 11:]6 addition [I] 38:]1 41:7 17:9 '83 [I] 24:20 22:]9 additional [2] applies [1J beginning [2] 29:5 35:8 36:19 39:24 22:1 '84[1] 5:9 229[3] 35:2 35:5 38:21 apply [4] 40:3 22:14 '87[1] 25:11 35:9 address [2] 3:12 40:6 40:10 40:11 behalf [5] 8:6 '97[3] 25:12 25:13 230[6] 11:16 22:19 6:20 appraisal [2] 25:13 21:15 21:]8 32:21 25:18 29:2 29:5 29:9 administer [I] 42:4 26:18 33:25 '98[1] 26:12 35:8 afterwards [I] 42:10 appraised [8] 25:8 belief [I] 34:14 '99[5] 20:5 20:17 235 [S] 23:11 26:3 again [4] 14:]8 25:9 25:24 26:7 better [I] 8:11 23:24 23:25 26:12 29:2 40:15 40:17 ]5:14 26:14 26:23 26:14 26:23 26:24 between [10] 3:2 25[1] ]2:7 against [2] 15:23 27:3 9:20 11:16 ]9:22 -1- 250[1] 29:12 21:22 appraisors [I] 27:5 ]9:24 22:]8 27:7 agent [I] 33:11 April [2] 9:20 35:7 38:3 39:]2 1 [2] ]:13 11:6 36:2 bifurcate [3] 18:11 10[1] 34:24 -3- ago [3] 3]:14 32:1 April-early [I] 36:3 18:2] 19:2 37:15 100[2] 5:14 33:6 3 [I] 2:4 agree [3]9:2 12:15 area [2] 24:14 24:]5 birth [IJ 5:4 lOth [iJ 42:22 30[1] 40:18 19:7 arrived [I] 30:]5 bit [I] 28:18 12[4] 31:18 3]:20 300[1] 38:13 agreement [25] 11:7 assessed [3] 20:21 blocks [3] 6:4 32:4 32:5 11:8 11:17 12:]7 30:]7 30:20 25:1 25:2 12th [2] 1:15 6:11 -4- ]5:1] 15:]5 16:13 assessment [2] 20:21 board [I] 23:6 133[3] 39:9 39:13 40[2] 19:3 19:4 19:10 21:8 born [31 4:20 5:6 40:7 40:8 40:19 19:]2 19:13 19:15 5:8 19:20 20:6 27:22 assets [5] 8:22 138[1] 39:10 -5- 35:1 36:6 36:7 11:5 11:12 12:22 bought [1] 25:10 14[1] 13:17 36:8 36:17 37:6 15:6 briefly [I] 21:25 1419[2]3:14 6:]4 50[1] 15:9 37:25 38:24 39:2 assume [3] 9:6 bring [2] 29:10 170[1] 11:14 525[1] 1:15 Albright [3] 1:]1 9:7 22:14 29:12 17013 [I] 3:15 58[1] 5:25 42:3 42:23 assumption [I] 38:25 broke [I] ]2:12 18 [II 17:2] 5th [I] 5:11 alimony [20] ]2:11 Aston [2] 6:23 bubble [I] 40:21 1982 [3) 4:]9 12:11 ]2:14 ]2:17 6:24 bllyeT[3] 5:6 13:10 13:11 15:]4 attached [2] 30:20 37:7 24:17 -6- 38:8 38:12 1984 [I] 5:8 16:6 16:9 17:5 35:6 buying [I] 60[1] 15:10 17:16 17:]9 17:25 attended[S] 9:12 33:9 1986 [I] 7:2 18:3 18:4 36:6 14:3 14:4 14:]9 1997 [2] 5:18 7:5 -8- .38:19 39:14 39:17 19:18 -C- 1999 [4] 5:11 7:24 40:10 attorney [10] C[3] 1:11 8:55 [I] 1:13 allegations [I] 3:16 42:3 22:23 27:8 31:20 7:16 7:22 8:6 42:23 allows [2] 40:5 8:14 8:16 30:1 calculate [I] 23:15 -2- -9- 41:4 36:24 42:15 42:16 calculation [2] 3]:9 20[1] 5:7 9[1] 4:19 AMIS[I] ]:1 attorney's [I] 32:1 40:]2 2000 p]9:20 23:24 93[2] 40:7 40:9 among [I] 11:]7 attorneys [6] 7:11 cl!1endar [3] 10:5 24:7 9:50 [IJ 41:16 amount [10] 12:5 13:22 16:19 21:15 10:9 40:4 12:9 16:9 16:14 23:18 34:16 calls [I] 7:18 2000-2123 [I] 1:5 18:1 ]8:24 18:25 August [I] 7:24 cl!1m [I] 36:25 2001 [IS] 6:11 -A- 39:4 39:16 39:24 authorization [I] 9:]6 9:21 10:4 a.m[21 1:13 41:16 amounts [2] 16:11 9:8 canceled [I] 21:24 10:11 10:16 10:19 able [2] 29:6 40:23 16:]2 authorized [I J capacity [I] 38:25 10:2] ]4:2 14:]5 ANDES [7] 42:4 caption [I) 19:18 ]9:24 20:8 above [I] 40:8 1:14 Avenue [3] 5:14 42:13 23:24 23:25 absolutely [I] 30:7 1:18 1:19 2:4 6:2 33:6 Carlisle [7] 3:]4 2002 [13] absolved [I] 3:11 22:13 4]:12 aware [8] 5:]4 6:1 7:3 10:12 39:19 angry [2] 8:4 24:21 27:19 33:18 10:18 10:20 36:20 2]:14 30:8 30:11 14:3 accept [I] 26:17 37:1 carries [I] 14:15 14:18 ]8:20 acceptance [I] 32:3 33:11 37:6 40:21 ]8:21 18:22 19:1 9:24 answer [8] 4:7 38:7 carry [3] 39:23 41:4 4:7 22:4 22:5 away [2]6:2 6:4 4]:5 Multi-PagelM $229,278 - carry MICHAEL ~ W o '.;nr- HUGHES ALBRIGHT FOLTZ NATALE 717-540-02201717-393-5101 _!_~ ~ "',", ;>-~'v.~ '~r-'. ~~~ Index Page 1 ""1 ~~~~"~-. " - "'-- ~, -. ~ . _~ ,-,,_~ "' ~ J _ "~ . "W ~ _ , . ~ -'~ carved - family MICHAEL D. REED Multi-PagelM carved [I] 16:1 32:23 33:] 33:6 2:3 3:8 3:14 14:13 14:13 34:6 case [I] 40:6 33:]4 33:]7 34:5 date [5] 1:13 4:18 distinctive [I] 29:11 equation [I] 15:13 central [I] 7:2 34:]8 35:18 35:24 9:20 10:10 '\9:25 distributed [I] equity [8] considering [2] 35:24 12:4 15:8 certain [4] 10:24 35:25 dated [I] 19:10 disturbed [I] 28:17 15:19 15:22 19:23 13:13 17:25 19:2 constitutes [I] days [I] 7:13 divided [I] 8:22 20:10 20:13 21:11 certainly [2] 3:22 42:19 deal [6J 33:12 21:22 consulted [3] 36:13 division [I] 16:4 11:23 7:21 36:21 36:22 36:22 especially [I] 10:24 certification [I] 7:23 29:16 37:7 divorce [0] 1:8 ESQUIRE [2] 1:19 contact [2] 7:10 16:23 ]7:3 3:3 8:5 dealing [I] 9:3 18:12 20:4 37:]8 1:22 32:19 certify [S] 42:5 contacted [2] DECEMBER [I] 37:20 37:25 essentially [2] 15:8 42:7 42:12 42:14 33:20 1:13 document [3] 30:25 39:19 42:19 33:21 establishes [I] 31:1 chance [I] contend [I] decided [I] 33:10 31:3 35:10 4:8 41:7 deed [3] 30:2 35:13 documentation [6J establishing [I] change [I] 20:1 contention [7] 30:25 35:14 10:24 11:1 11:2 29:2J changed [3] 23:3 35:20 39:5 39:12 defendant [3] 1:8 12:3 12:23 15:7 estimated [I] 35:1 39:21 40:20 41:3 23:17 29:4 1:23 31:23 documents [0] 29:19 estimation [I] 23:17 characterize [I] context [I] 24:8 Delaware [I] 6:25 31:16 31:17 31:19 Europe [4] 36:5 13:20 continue [2] ]8:4 dependent [I] ]7:20 31:24 32:3 32:7 36:10 36:14 38:22 check [I] 34:7 40:25 deposed[IJ 32:8 36:2 eventually [2] continued [I] 23:2 3:25 dollars [16] 5:20 18:11 child [2] 17:25 18:5 deposition [10] ]:9 19:3 children [2] conversation [14] 11:14 11:16 15:10 exact [3] 4:20 11:4 ]6:25 20:20 31:14 32:7 34:19 29:2 35:3 35:5 2]:4 5:22 21:20 28:2 32:14 34:20 38:10 41:16 38:13 39:10 39:13 28:10 28:]9 chuckled [I] 28:18 36:1 36:4 37:2 42:8 42:12 42:19 40:7 40:8 40:9 EXAMINA nON [2] chuckles [I] 28:17 37:10 37:13 37:19 depositions [2] 3:22 40:15 40:]8 40:24 2:2 3:10 circumstances [I] 37:21 38:15 31:25 Don [3] 7:23 11:3 exceeded [2] 39:] 37:4 conversations [2] describe [I] 15:1 13:23 39:5 CIVIL [2] 1:4 24:8 35:25 determination [IJ done[s] 13:4 20:22 exceeds [2] 39:]6 1:5 copies [21 14:10 13:4 25:18 37:8 40:12 40:5 claim [I] 31:17 31:16 diary [6] 32:9 32:15 down [5] 11:4 except [2] 3:4 claiming [I] 15:25 copy [4] 25: 13 25:16 32:17 33:25 34:3 ]1:6 12:12 36:25 21:19 25:17 25:22 34:6 42:9 excess [1] 39:13 clarify [I] 24:19 Dickinson [I] 33:18 drafted [3] 19:13 exchange [I] clause [6] 36:19 correct [24] 4:16 13:7 5:16 5:23 7:6 DIETTERICK [I] 38:23 41:10 exchanged [I] ]4:7 36:23 38:2] 38:21 38:23 39:25 9:10 10:8 ]4:5 1:21 draw [I] 29:7 exchanges [I] 13:19 clear [I] 41:6 14:20 16:20 ]6:2] difference [I] 39:]2 drop [I] 28:25 excluded [I] 18:12 18:13 ]9:5 39:7 close [2] 3]:5 40:4 19:8 22:]6 24:25 different [4] 23:3 dropped [11 28:24 Exhibit [I] 11:6 Colonial [I] 30:3 30:4 30:5 26:15 29:8 41:1 duly [2] 3:9 42:8 exhibits [1] 31:25 6:22 column [I] 30:7 33:5 33:16 direction [I] 42:11 during [10] 6:15 exist [I] 32:9 30:21 39:20 41:11 directly [2] 7:11 17:23 19:17 23:4 existing [I] 30:11 comment [3] 12:18 correspondence [I] 42:17 25:3 32:11 34:25 37:]2 38:9 13:20 disagreement [II 37:12 38:10 39:2 exists [3] 32:]2 comments [2] 34:10 32:13 32:15 counsel [3] 3:2 ]5:]6 34:18 42:15 42:]6 discuss [4] 15:14 -E- expectation [I] 36:]2 commit [I] 20:15 counterproposal [I] ]5:15 23:2 23:19 early [6] 9:21 explain [2] 7:13 Common [2] I:] discussed [14] 10:3 20:13 9:23 9:8 12:18 26:12 33:1 30:22 county [5] ]:2 ]0:22 11:15 13:14 33:8 express [2] 24:11 Commonwealth [2] ]5:4 15:18 15:20 28:7 6:25 20:22 21:2 earning [I] 38:25 42:2 42:5 42:1 ]5:21 20:14 21:10 expression [I] 3]:7 communications [I] couple [21 21:15 21:17 21:21 economic [I] 9:4 extend [I] 40:23 24:20 effect [2] 8:]7 25:1 2]:24 23:8 extent [2] 13:11 complete [2] 4:6 Court [2] discussion [12] 10:23 39:22 39:24 1:1 4:7 31:4 11:12 12:7 ]2:9 effort [I] 17:15 conclude [I] 15:12 courthouse [3] 12:12 14:7 ]7:1 either [5] 7:24 -F- 2]:2 17:11 18:]9 19:19 18:2 21:14 36:3 concluded [I] 4]:16 30:12 35:11 21:25 41:15 37:6 fact [3] 15:5 38:15 confirm [I] 34:3 created [I] 39:6 discussions [26] elaborate [I] 4:8 39:6 confused [I] 18:16 Cumberland [3J 7:10 7:11 7:12 employee [2] 42:15 factor [I] 30:22 connection [I] 25:9 ]:2 21:2 42:1 7:17 9:3 9:17 42:16 fair [4] 30:14 3]:1 Connelly [12J 1:21 current [2] 10:8 9:22 13:18 13:21 end [2] 31:8 35:1 14:6 16:8 16:11 14:] 19:25 1:22 2:5 13:23 23:21 fairly [I] 17:21 17:24 ]9:21 ended [4] 12:16 23:23 14:4 14:19 21:20 CUt[IJ 4:6 20:9 22:6 22:15 13:1 18:6 37:2 Fall [I] 22:23 22:7 22:10 23:5 36:11 41:13 22:25 23:5 23:13 entities [I J 13:8 familiar [2] 24:15 Connie [13] -D- 23:22 34:15 34:16 entitled [1] 39:3 25:4 32:10 35:7 38:3 32:14 32:]9 32:22 D[s] 1:7 1:9 dispute [3] entries [2] 34:2 family [1] 5:15 12:2 ' Index Page 2 HUGHES ALBRIGHT FOLTZ NATALE 717-540-02201717-393-5101 11I11 ,''''''\ .' -- --~,~! "~ ,-f1~1!'!'il'~ 'fl '~ljiJ! """'''" , :r.,j \llil!lli# :~f!f_IIII11Q111J!i11!!IJf!I_II_~lifllWlJ!~"",",:r"{,","'''''''-'''r'''''_''''''''''-,-,,",,'''''~iWe;~m~fil!IlrJI~Il;~W';flJ\;fO",~q",,-,-_,4"--; 1I"";""~~.;<fl"'rl''f''i''I!I~ """"~' '!II!11I""-~' "'I "'''c_'''!l!l'':<rjl':mr"IC'~:ff'Iffll!llfl~'$ o o o . ~ .,.'_""..]!N'V'"' ~, -'.. h_ ,'T-I'A" Multi-pagelM far - might MICHAEL D. REED far [4] 6:2 18:24 13:1 important [I] 38:18 ;, lc:ept [I] 32: 10 24:17 24:20 24:23 24:24 34:8 gone [2] 23:10 34:8 included [I] 18:5 ~ds [2] 7:18 ]7:2 25:3 32:11 February [21 19:14 graduating [I] 17:21 including [I] 17:16 kind [5] 12:12 12:16 lives [I] 33:18 42:22 graduation [I] 27:12 ; income [0] 39:] 28:17 29:11 38:15 living [3] 5:13 feeling [I] 37:16 great [2] 27:18 33:12 39:4 39:6 39:8 Kissinger [IS] 7:24 24:5 24:7 fell [I] 27:6 Green [I] 6:22 39:9 40:5 40:13 8:5 8:17 8:20 LLP[I] ]:21 felt [3] 7:14 7:15 40:17 40:22 9:9 9:12 9:24 location [1) 29:11 23:11 gross [5] 39:1 39:6 indefinite [5] ]2:14 11:3 13:23 14:4 look [4] 10:6 39:8 39:9 40:5 27:]6 few [I] 7:13 ]5:17 ]7:5 ]8:3 ]9:]8 20:7 2]:16 30:19 32:5 field [I] 27:7 guess [0] 13:10 ]8:24 22:7 22:15 looked [2] 13:2] 24:13 28:15 indicate [I] , knew [4] 11:13 14:9 figure [4J 10:3 21:1 18:3 30:]7 37:13 37:14 27:]8 27:2] 37:]5 18:4 35:5 35:10 38:] 41:2 indicated [3] ]2:13 knowledge [7] lower [3J ]8:3 figures [1] guessing [I] 21:7 37:5 9:25 18:24 26:13 ]2:24 26:1 indirectly [I] 13:18 14:8 14:]2 file [1] 16:23 42:17 19:22 27:2 27:6 filed [7J 18: 11 18:22 -H- information [71 32:23 KNOWN [I) 1:] -M- 34:10 34:13 35:3 29:20 30:8 30:9 half [I] 40:8 35:18 35:19 35:20 managing [I] 12:25 3]:4 35:11 hammer [I) inheritance [3) 1] :20 -L- March [8] 9:16 filing [I] 19:16 3:4 hand [2] 30:6 15:6 ]5:25 L[3] 10:11 10:18 10:20 42:21 1:14 ]:18 final [8] 12:10 18:23 hands [I] initial [2] ]0:23 J:J9 13:]6 14:15 14:18 19:13 19:16 36:2 32:8 22:2 36:8 36:13 36:16 happy [I] 27:23 12:6 language [3] 19:7 marital [I] 8:2] finalized [I] 17:3 head[3] 17:7 38:10 initiated [I) 11:4 41:4 41:5 marked [I] input [I] last [2] 31:24 financial [3] 7:10 38:12 24:]2 32:]1 36:]2 market [0] 25:4 7:14 9:18 heard [2] 35:23 intention [I] 33:22 late [7] 14:1 18:15 27:22 29:8 29:]0 financiallY[I] 42:17 35:24 interest [3] 11:24 18:22 26:12 27:25 29:2] 30:14 31:] fine [2] hearing [I] 31:23 13:7 15:25 33:7 36:3 31:8 35:1 20:]6 28:25 firm [10] 10:25 held [II 41:]5 interested [2] 33:9 laW[14] ]:4 ]:14 marriage [2) 4:18 ]0:25 1:18 10:25 10:25 help [I] 10:]4 42:17 4:2] 11:12 12:3 12:22 11:12 ]2:3 12:22 13:8 15:6 15:24 hereby [4] 3:2 interests [2] 10:25 13:8 15:6 15:23 married [3) 4:15 21:23 30:4 3:4 42:5 42:14 ]1:3 2]:23 31:9 33:18 6:15 24:4 first [8] 6:21 7:21 hereunto [I] 42:2] interpretation [I] lawyer [3] 17:9 Mary [6] 33:2 8:4 8:]6 9:2 39:8 38:2 38:3 38:6 high [5] 17:22 20:24 20:16 24:2 20:3 22:15 24:20 21:5 21:7 27:12 interpreted [I] 37:15 learn [I] 28:] 38:7 38:14 fit [I] 38:8 higher [I] 18:25 interrogatories [4] learned [2] 27:10 matter [3] 7:22 Fitts [3] 33:2 38:2 Holly [2] iO:6 10:7 10:14 27:24 8:2 38:20 38:3 3:]4 32:24 matters [I] 16:3 following [3] 6:14 involved [I] 24:3 least[3] 24:5 24:5 13:17 home [3] 6:5 26:4 may [8] 10:3 ]9:10 39:3 40:4 6:8 7:13 issue [1]4]:5 leave [1]27:]9 19:21 20:6 22:4 follows [I] 3:9 house [54] 5:22 items [I] ]2:20 led [2) 24:9 29:1 36:3 foregoing [1) itself [2] 30:16 35:22 37:9 21:2] 42:6 7:3 11:13 11:14 31:11 left [6] mean [4] forget [I] 36:7 ]J:J5 7:13 ]2:2 23:22 24:]5 33:15 13:14 14:8 16:] 17:24 36:]0 form [6] 3:5 30:16 ]4:]6 15:7 15:8 -J- 40:11 means [I] 41:7 30:]9 31:9 3]:10 15:19 ]5:]9 ]5:22 J[I] LEMOYNE [1] meeting [31] 9:]1 31:11 15:22 19:20 19:23 ]:22 9:14 9:17 10:2 ]9:23 20:9 20:]0 JAMES [I] 1:2] 1:16 10:5 ]0:11 ]0:]5 FORMERLY [1] ]:1 20:]4 20:2] 21:11 January [11] 4:]9 less [2] 26:2 40:18 10:21 1J:J8 11:23 formulating [I] 24: 12 21:11 2J:J7 21:22 10:3 10:11 ]0:15 letter [6] 8:25 9:2 11:24 12:8 12:16 22:7 22:17 23:1 ]0:19 10:21 14:14 9:5 9:7 9:20 13:2 13:16 14:3 found [2) 37:3 23:20 24:19 24:24 ]9:]4 19:]8 19:24 9:23 ]4:14 14:]5 ]4:18 37:11 25:8 25:10 27:7 20:8 letters [3] ]4:6 15:1 ]5:2 ]5:18 frankly [I] 38:18 27:10 27:13 27:21 John [6] ] :22 13:22 14:9 ]4:11 15:2] 17:1 18:2] free [I] 37:16 28:15 29:2 29:11 15:2 21:20 23:9 level [2) 17:19 30:22 19:17 20:7 21:16 front [I] 10:9 33:3 33:12 34:11 36:10 21:21 22:1 22:2 34:14 35:2 35:21 light[3] 17:7 29:25 meetings [3] fund [2] 11 :25 15:12 37:3 37:8 38:4 joint[2] 11:21 11:22 30:] 10:10 ]6:]8 34:16 funds [2] ]2:4 38:8 39:6 40:14 JR[2) ]:22 3:8 limited [I] 7:]2 13:5 40:22 40:25 JulY[7] 5:18 7:5 limits [I] 29:13 memory [I] 9:5 houses [I] 25:5 7:24 20:5 27:25 list [3J ]]:5 11:6 mentioned [5] ]2:20 37:13 20:]2 35:4 36:16 -6- 37:21 11:7 38:12 garbled [I] 4:10 -I- June [I) 27:]4 listed [II 39:10 met [2] 23:9 33:2 general [I] 11:17 idea [4] 19:1] 30:24 listing [I I 37:6 Michael [6] 1:7 gesture [I] 38:9 37:16 37:23 -K- litigation [I] 3:18 1:9 2:3 3:8 given [2] 39:2 immediately [I] Karen [3] ]:11 live [4] 5:24 5:25 3:14 42:6 42:20 5:12 42:3 42:23 6:7 6:9 middle [I] 30:21 giving [2] 12:23 implicit [I J 2]:]9 keep [2] 11 :25 17:18 lived [7] 7:4 24:]6 might [13] 17:10 HUGHES ALBRIGHT FOLTZ NATALE 717-540-02201717-393-5101 Index Page 3 ~ .....",..._.,...",~ ,~., -~ ~>,.","'~' ~,~~ , -~ ~, - r'I'~ ,,~..,~ n~ .' 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I Miller - remember MICHAEL D REED Multi-PagelM . 23:9 26:8 26:14 42:3 42:24 31:20 32:4 32:5 24:23 rate [I] 26:13 29:6 29:7 29:8 note [I] ]2:16 33:5 34:24 35:9 portion [3] 40:11 ratio [I] 30:22 29:10 29:12 37:24 nothing [4] 7:19 4]:4 40:12 40:16 reach [IJ ]2:17 38:7 38:12 38:]4 23:3 23:]7 34:22 parens [3J 40:4 positive [2] 2]:6 reached [5] ]5:15 Miller [3] 4:24 November[2J 24:7 40:4 4]:6 34:4 16:14 ]8:23 19:]1 5:2 5:3 33:8 part [I] 6:24 possession [I] 3]:23 27:22 million [I] 40:24 now [7] 5:2 6:7 participated [I] 3 :22 possible [4] 10:4 read[4] 30:]6 31:19 minute [I] 41:13 8:13 18:]6 28:15 particular [I] 27:6 23:]0 26:17 37:9 39:25 41:8 modify [I] 38:19 37:14 37:16 parties [8] 3:3 possibly [2J 25:23 reading [I] 33:5 Mom [I] 27:13 numbeT[l] 21:23 11:18 15:3 17:15 38:13 realistically [1]29:6 money [I] 15:25 31:22 35:1 35:7 practicing [I] 7:1 realities [I] 7:14 months [2] 13:17 -0- 42:15 prepared [2] 29:24 reality [I] 35:7 37:22 partner [I] 12:25 29:25 really [5] 7:]6 oaths [I] 42:4 party [I] 20:8 preparing [I] Moreland [3] 5:14 objections [I] 3:4 30:6 16:1 24:]4 29:17 6:2 33:6 Paula [2] 29:25 present [3] 6:13 3]:]2 mortgage [2J 11:13 obviously [I] 39:13 30:1 24:4 33:]5 realtor [2] 33:2 25:10 occasional [I] 7:]7 payment [I] 15:11 press [I] 11:24 33:10 mother [I] 11:20 occasionally [I] payments [4] ]2:15 pretty [IJ 31:5 realtors [I] 27:5 6:12 23:]6 39:]4 39:17 40:10 previous [I] 9:5 realty [I] 29:20 move[IJ moved [5] 5:21 occurred [5] 6:]2 pecentage [I] ]2:20 price [61 26:5 27:24 reassessment [I] 13:24 37:17 38:14 7:2 7:23 20:12 40:13 Pennsylvania [7] 28:3 28:16 38:4 20:22 20:]7 October [I] ]:2 1:16 3:15 39:11 received [4] 11:21 17:22 33:8 6:23 7:2 42:2 principal [3] 19:]2 20:20 36:16 39:]5 movIng [I] multiple [I] 30:21 off [4] 4:6 15:3 42:5 19:15 41:1 recent [2] 7:22 24:17 41:15 pension [7] 11:20 problem [3] 16:]6 23:23 must [2] 8:23 20:4 offer [71 8:20 12:6 12:4 12:6 12:10 17:4 22:10 recollection [6] 10:8 17:18 18:1 18:6 12:21 13:5 15:12 -N- 18:8 18:23 people [I] 27:6 process [2J 4:2 13:13 13:]5 16:22 19:6 20:23 21:6 name [3] 2:2 office [3] 9:12 percent [I] 12:7 production [3] 29:18 recollections [I] 3:12 36:8 20:8 32:1 percentage [4] 12:4 29:19 31:16 34:7 names [3] 4:23 OFFICES [2] ]:14 13:4 15:11 30:18 property [11] 5:25 record [3] 3:13 11:2] 11:22 1:18 percentages [I] 12:8 7:5 12:2 12:10 41:15 42:20 Nancy [43] 1:1 offset [2] 15:8 perform [I] 36:13 ]5:13 31:2 32:11 recordled [I] 30:] 1:2 4:15 5:10 15:23 perhaps [2J 22:23 34:25 35:15 36:5 records [I] 6:15 7:9 7:12 old [2] 5:2 17:21 36:6 10:3 23:18 reduced [3] 19:4 8:10 8:11 9:23 once [I] 26:10 proposal [I] 9:8 11:21 12:5 12:13 person [11 33:9 39:15 42:10 One[16] 6:]7 10:]0 proposals [2] 9:3 14:19 15:]7 ]6:]9 PeteT[3] 5: I 5:6 reduction [3] 39:3 ]6:25 17:2 ]7:6 10:18 12:21 ]7:]7 17:20 9:25 40:3 40:9 ]8:]9 ]9:22 17:18 18:6 20:11 petition [6] 18:11 proposed[IJ 8:2] Reed [8] 1:2 17:11 20:11 27:2 28:]9 ]:7 20:3 20:9 20:20 34:15 36:23 37:9 18:21 19:] 30:20 provided [I] 34:9 1:9 2:3 3:8 2]:]7 21:]8 23:18 40:6 41:8 3]:18 34:24 PubliC[4] ]:12 3:14 4:15 42:6 24:19 26:8 28:2 one-half [3] 39:4 petitioner [I] 31:24 42:3 42:10 42:24 refer[l] 29:19 31:3 31:22 32:11 39:15 phew [2J 28:11 purchase [3] 6:5 referred [I] 10:]5 32:25 34:10 35:20 39:4 35:25 36:1 36:4 open [2] 13:11 16:3 28:17 26:5 39:11 refinance [2] 26:9 38:4 38:12 38:22 opinion [0] 7:16 Philadelphia [3] purchased [3] 5:17 26:9 Nancy's[2] 32:10 23:3 24:11 24:]2 7:1 7:1 24:21 . 7:3 7:4 refinanced [I] 26:12 34:19 29:1 29:]4 31:8 phone [3] 7:17 pursued [2] ]7:]4 reflect [I] 34:3 need[3) 6:19 12:18 31:13 34:13 17:13 28:2 ]7:15 regard [I] 16:23 34:7 opportunity [I] 22:5 phonetic [I] 35:16 put [7] 11:22 27:21 regarding [7] 8:21 28:]9 28:22 32:24 needed [3] 7:15 options [2] 17:18 Pike [2] 3:14 6:14 9:3 14:15 15:19 32:25 38:10 15:14 36:12 ]8:24 place [0] 1:14 putting [I] 38:11 16:14 34:11 35:2] needs [I] 38:9 original [I] 39:10 9:15 14:23 15:1 rejection [I] 9:24 negotiable [3] 17:5 originally [I] 33:3 17:12 24:9 37:19 related [I] 13:8 37:21 42:13 -Q- 17:6 18:20 outside [I] 6:25 relating [I] 10:24 plaintiff [6] 1:3 negotiate [I] ]7:10 own [2] 6:7 6:16 questions [3] 4:4 relative [3] 6:2 ]:10 1:20 31:21 41:12 42:9 negotiation [IJ 14:]4 owned [I] 6:22 33:7 33:10 42:14 42:16 negotiations [7] owns [I] 6:8 PLEAS [11 1:1 quickly [4) 25:5 relevant [I] 31:22 27:23 37:4 37:9 13:]8 13:21 ]7:]5 point [161 8:24 remained [2] 5:22 23:16 24:1 34:25 ]2:13 37:1 35:2 -P- 10:1 11:1 -R- 12:24 13:22 15:4 rementber [151 5:19 neveT[l] 23:3 P-H-E-W[I] 28:12 15:17 16:3 ]7:]7 raised [I] 31:20 7:20 8:25 9:15 next [2] 16:23 16:24 paid [I] 5:19 18:1 18:2 19:20 range [4) 15:9 10:1 13:24 ]6:]2 NORTH [I] 1:15 papeT[l] 12:25 28:24 29:2] 36:13 23:11 26:3 35:8 ]6:13 16:24 ]8:8 Notary [3] 1:12 paragraph [8] 31:18 Pomfret [2J 7:3 18:14 20:19 25:20 Index Page 4 HUGHES ALBRIGHT FOLTZ NATALE 717-540-02201717-393-5101 "'~"'" ! . ":{!l\ ,<,J .'i'Ji~1\ :"1 "",,,j!! /r!lf~~~, :""",;1 i ~1~_"~,~~_...",.,.....,."fM~~~l'l'-llWIll\"!'ow.o"'''''''''~';'''l'''''-'~-'''''~'''~"'IP-"'1H'l'iH!i,*rnlii".{i~i",~~I!!Jj!<IJ,;fir*1::n_"J'-' ~,,~{":"'W'\'!"'!'H"'_'II !!'II^,~I -----"^ .. -., -1'1' , ,. "C"-'",~,'H~-"~!iJli"~lr4!~ffll'J>'J~'''1' 0....>. ,-' :4 Q 0', '::,_ -i , ".i-'''~"-' -?_ ';"~'"'t"-,.~(;^",,--- - Multi-Page 1M removed - whole MICHAEL D. REED 25:24 26:22 27:13 27:23 28:]5 supporting [1] 31:20 true [2] 8:19 42:20 removed [I] ]7:25 -S- 35:]5 37:3 37:4 sUrprise [2] 28:5 truthful [I] 38:6 rental [I] 5:25 sale [8] 40:14 40:17 28:7 try [2] 11:7 27:20 25:5 27:24, rephrase [IJ 4:1l 28:3 3]:5 33:11 someone [I] 33:20 suspected [I] 37:24 trying [3] 7:13 replace [I] 13:23 39:5 40:22 40:24 somewhat [I] 25:4 sworn [2] 3:9 ]5:3 38:6 reported [I] 39:7 SAMUEL [3] 1:14 somewhere [3] lU5 42:8 two [161 4:20 5:]7 U8 1:]9 23:12 26:3 6:16 6:21 12:20 Reporter [I] 42:1] satisfactory [I] 4:13 son [2] 17:19 27:12 -T- 17:]8 18:15 18:24 Reporter-Notary [I] saw [I] 30:1l son's [I] 27:12 taking [II 20:11 21:24 24:21 42:10 42:7 26:20 29:8 34:15 represent [2] 8:1 says [3] 39:25 40:3 sorry [2] 10:17 19:24 tax [3] 29:20 39:7 35:22 35:25 8:13 41:6 sort [5] 1l:3 15:4 39:1l typewriting [I] 42:1] representative [I] school [4] 17:22 15:24 21:24 25:6 taxes [1]2]:8 3]:4 27:12 27:19 33:19 source [I] 35:3 telling [I] 38:22 -u- represented [3] 8:13 scratch [I] 12:25 speaks [1] 31:1l ten [I] 35:9 8:16 23:4 sealing [I] 3:3 specialty [I] 3:20 um-hum[2] 5:9 tenant [2] 32:10 22:24 representing [I] second [3] 10:1l specific [4] 15:18 33:6 unavailable [I] 35:21 31:4 2]:21 37:]2 ]5:21 16:11 21:23 teml[S] 1:5 13:10 request [3J 29:18 secure [I] 33:10 specified [2] 14:1l ]5:16 16:9 16:16 under [I] 42:11 29:]9 3U5 see [3] 1l:7 14:10 42:13 terms [4] 9:22 understand [I] 4:9 requested [I] 31:16 41:8 spoken [II 33:8 19:]6 24:5 24:6 unhappy [I] 20:23 requesting [I] 1l:2 seeing [I] 8:25 Spring [2] 20:18 testified [2] 3:9 unique [I] 29:1l requires [I] 31:10 seeking [2] 15:5 20:18 31:13 up [91 13:1 ]5:4 reserved [11 3:5 38:19 SS[l] 42:1 testify [I] 33:22 16:1 17:3 18:6 residence [4] 5:15 seem [1] 36:18 started [I] 15:3 testimony [3] 38:2 21:1 2]:9 23:10 6:21 33:7 33:9 sell [2] 27:20 38:4 state [2] 3:]2 6:24 42:6 42:20 25:5 residents [I] 6:16 sent [2] 10:7 36:10 statement [21 29:20 thereafter [I] 18:2 upper [I] 29:]3 resolution [I] 9:4 separate [1] 5:]0 35:6 therefore [2] ]6:1 used[3] 21:7 30:17 32:7 resolve [I] 17:16 separated [5] 5:21 statentents [3] 31:]8 39:]4 resolved [I] 17:8 7:7 7:9 1l:22 32:4 34:10 thought [IS] 1l:]7 respected [I] 29:5 stenographically [II 20:13 20:24 21:5 -v- 7:16 separation [4] 5:12 42:9 22:18 29:5 29:6 V[I] ]:5 respective [I] 3:3 8:8 8:12 20:4 Stets [I] 35:15 29:9 29:9 29:10 respond [lJ 9:23 29:]2 31:5 33:4 vague [2] 20:23 respondent [3] 31:21 September [3] 5:1l still [10] 1l:2 13:3 34:5 36:21 21:6 6:11 20:17 15:14 ]5:15 ]5:16 valuation [2] 12:22 33:7 33:10 set [I] 42:21 15:17 16:]6 17:20 thousand [17] 5:20 ]2:23 result [I] 17:14 settlement [11] 7: I 0 23:1] 25:22 11:14 ]1:]6 15:10 value [41] resulted [I] 40:13 stipulated [I] 3:2 ]8:15 29:2 35:3 ]1:]2 8:2] 9:18 9:22 35:5 38:13 39:9 1l:13 ]U5 13:7 retain [I] 8:1 12:2 ]2:10 18:23 STIPULATION [I] 39:13 40:7 40:8 13:14 ]4:8 14:16 retained [3] 8:12 34:25 36:6 37:]8 3:] 40:9 40:15 40:18 ]5:22 15:23 19:20 13:22 22:21 37:20 street [6] 1:15 40:19 19:22 20:9 20:21 retirement [3] 15:12 seven [2] 18:4 6:1 6:9 6:]9 three [4] 6:4 13:3 20:21 2]:11 21:]7 ]6:2 16:4 18:25 7:3 24:23 25:2 37:22 2]:22 21:23 22:7 retrospect [I] 35:23 sheet [I] 42:13 strike [2] 7:7 through [4] 22:8 22:9 23:1 7:Jl 23:14 23:19 24:1l return [2] 39:7 shortly [7] 16:25 14:13 8:20 13:22 14:9 24:]2 25:24 27:7 39:1l 18:2 ]8:20 20:12 subject [2] 28:24 throughout [I] 37:1 29:20 29:2] 30:14 returned [I] 36:4 20:]6 27:22 35:]2 31:21 times [3] 4:10 30:17 30:21 3]:1 reversed [IJ 10:19 showed [II 10:7 submit [11 8:20 21:10 21:14 31:5 31:8 34:1l 16:22 side [I] 15:13 submitted [II 9:7 timing [I] 38:3 34:]4 35:1 35:6 revtew [I] sides [I] ]9:3 subpoenas [I] 38:4 revise [2] ]8:17 3]:21 together [6] 6:22 values [2] 23:16 signature [I] 36:17 subsequent [21 9:1l 16:]9 24:4 24:5 ]5:18 15:21 right [14] 9:6 signed [13] 19:21 23:13 24:6 24:7 13:6 13:9 ]6:5 20:6 36:3 36:5 subsequently [IJ too [51 12:18 17:3 version [21 36:9 ]6:7 16:]7 20:6 36:6 36:8 36:9 6:5 20:24 2]:5 21:7 36:16 22:3 22:22 28:13 36:11 36:23 37:6 substance [2] 14:25 took [7] 9:15 15:1 Village [I] 6:22 29:23 34:17 34:21 37:17 37:]9 37:24 36:4 ]9:6 19:]2 19:15 35:17 significantly [I] substantive [I] 7 :20 37:]9 37:21 -w- romantically [I] 29:4 such[l] 42:16 townhouse [11 6:22 waived [I] 24:3 simply[11 29:]4 3:4 sufficient [I] 5:5 transfer [31 29:20 wash [1]l5:24 rough [I] 21:4 single [I] 5:15 suggestion [I] 40:20 35:]4 37:8 washes [I] roughly [4] 19:14 situation [I] 7:15 trial[l] 3:6 21:22 21:4 26:1 39:9 slightly [I] 23:10 summarize [1] 15:3 tried[31 1l:4 website [I] 21:1 support [6] 17:25 20:13 week[2]31:]4 RPR[2] 1:1l 42:23 SMITH [I] 1:21 36:25 32:] 18:6 31:17 32:4 WHEREOF [I] 42:21 sold [10] 25:5 27:1l 34:6 35:19 trip [2] 36:5 36:10 whole [I] 13:1l HUGHES ALBRIGHT FOLTZ NATALE 717-540-02201717-393-5101 Index Page 5 il""ll~IIW~-'!l~~,,~ ~ -- ~-'''''1~ ~ ,-"~"'-~.__..... ~ , ~ ~ ,,-,,~ ~~~." ~-~.., wife - younger MICHAEL D. REED Multi-PagelM wife [16] 6:8 8:5 8:6 9:13 23:21 24:1 24:4 29:21 30:2 32:13 32:22 32:23 33:15 33:]5 33:2] 34:5 wife's [I] 40:5 willing [3] 12:13 12:15 26:]7 Wilson [2] 6:1 6:9 wiped [I] 39:18 within [2] 7:13 42:4 without [I] 20:15 witness [5] 3:8 22:12 42:8 42:20 42:21 WITNESSES [I] 2:] . word [I] 14:13 words [6] ]5:1 21:7 28:]0 28:20 38:1 39:24 works [2] 4:2 33:18 worth [II] 12:3 22:17 22:18 29:2 29:5 29:7 29:9 29:9 33:3 33:12 40:14 wrapped [I] 17:3 writing [I] 19:4 written [I] 19:13 wrong [3] 10:12 14:13 39:11 -y- year [14] 5:4 13:17 14:1 17:22 27:25 32:11 39:2 39:3 39:17 39:22 40:3 40:4 40:6 41:8 years [5] 17:21 18:4 ]8:25 24:22 26:20 yet [I] 36:16 younger [I] 17:]9 (}Jfj Index Page 6 HUGHES ALBRIGHT FOLTZ NATALE 717-540-02201717-393-5101 ,- '."1' , ';-1 , ,-' 'Jiil;!iP" /'~~~. ,~~,I , ~~ '- --I ~~~ ^ ,,",,,~~,,J~!llfI'l!IJll;">'I'mI"W""''''cm-C'''''''''''~~'*'t:W~lJii!))~{<:l'tt;'t{<l1\'''H'''''''''';Ji>'\'''1_,",''0---1''_'," ,,~,-, f "~on '''n''''''C''["W';W<WI''F;1'1'JT,,1''''''l':><Y'!'-Y'<!'' W'~1'1'iiW\""',nn,*~1!i>I~ OJ IN THE COURT OF COMMON PLEAS . CUMBERLAND COUNTY, PENNSYLVANIA NANCY A. REED, PLAINTIFF VS NO. 2000-2123 MICHAEL D. REED, DEFENDANT DEPOSITION OF: MARY FITTS TAKEN BY: DEFENDANT BEFORE: ANTHONY J. BALSHY, REPORTER NOTARY PUBLIC if""1" l-~i DATE: PLACE: NOVEMBER 17, 2004, 1:25 P.M. JAMES, SMITH, DIETTERICK & CONNELLY 134 SIPE AVENUE HUMMELSTOWN, PENNSYLVANIA APPEARANCES: SAMUEL L. ANDES, ESQUIRE FOR - PLAINTIFF JAMES, SMITH, DIETTERICK & CONNELLY, LLP BY: JOHN J. CONNELLY, JR., ESQUIRE FOR - DEFENDANT l""'r.....' ~i Geiger & Loria Reporting Service - 800-222-4577 "li""" ., ,...., C:;:) = en -;, 1'T1 CO o -n ...... ., rn -niT :oc:: ~il glT :n .-<; .!;:" v _1:~ r'V f'0 ,~ 2 1 TABLE OF CONTENTS 0 ",.J 2 WITNESS 3 FOR DEFENDANT DIRECT Mary Fitts 3 4 5 6 7 8 9 10 11 CJ 12 ''':.. ,,{ 13 14 15 16 17 18 19 20 21 22 23 24 0 " ' 25 Geiger & Loria Reporting Service - 800-222-4577 -"-''''''''l''~~'' "--"I ~ ,~ , ~ 0 -" ,.J 2 3 4 S 6 7 8 9 ~O 11 12 0) 13 14 lS 16 17 18 19 20 21 22 23 24 0' -',.",r 2S --" 3 MARY FITTS, called as a witness, being sworn, testified as follows: DIRECT EXAMINATION BY MR. CONNELLY: Q State your name for the record, please. A Mary B. Fitts, F-I-T-T-S. Q How are you employed, Mary? A I'm a real estate salesperson. Q And who is your employer? A Jack Gaughen Realtor, Carlisle office. How long have you been in the business? Q A 32 years. And I believe you actually sold the Q Reeds this property located at 100 Mooreland Avenue, Carlisle, is that correct? A Yes, I did. Q 1997 I believe? A Maybe. I have a copy of the deed when they bought it. Might have been '96 -- I don't know when it was. Q All right. It's not critical. Everybody says '97. That's your recollection as well. I Geiger & Loria Reporting Service - 800-222-4577 '<1 ~~ '0.........'. , " , o 0"" .1.._ J c ~ '""'1''1'''''''1 4 1 I could find the deed. I just thought A 2 I saw the deed and it was '96, but I am sure it was 3 '97. 4 Can you tell me what your familiarity Q 5 is with the market in this area, Old Mooreland and 6 Carlisle market generally? 7 Well, I think it's my specialty. I A 8 live in the historic district in downtown Carlisle, 9 and I work mostly with Dickinson College professors 10 and other people like that that want to live in the 11 downtown area, and I have thought it made it my 12 specialty. 13 Q When did you first begin showing Bob 14 Stout and his wife homes in Carlisle including the 15 Old Mooreland area? Do you recall that? 16 A Well, there were very slim pickings, 17 and the first time I ever met them I had a house 18 listed on Devonshire Drive. I don't even know if 19 they remember having met me at Devonshire Drive. The 20 house was less than 200,000. I forget what the 21 asking price was. Maybe 185. I don't remember. 22 189, 190. And they were a very nice couple and I, you know, chatted with them extensively that day and they wanted a house in the Old Mooreland area, and I 23 24 25 I had it in my head that that was the price they wanted Geiger & Loria Reporting Service - 800-222-4577 " I ~ ~ 0, ',-,---'-,' 0'"""- ,': !":-'" I: 0,' ~ '< - " 5 1 to pay, you know, like less than 200,000, and, of 2 course, properties over there are hard to find. They 3 are very special. They don't come up very often. 4 And so I never called them back because nothing 5 really was ever on the market, and finally something 6 came on the market, and I don't remember what it was. 7 And I called the Stouts on the phone. I had their 8 card at least a year or more, and I called them on 9 the phone and I said and it may be the house on 10 East Ridge Street that had been old Judge Jacobs' 11 house. That house was on the market for sale, and so 12 I called them to maybe talk about that house or maybe 13 there was something else I called them on. And they 14 said -- maybe it must have been that house because 15 they said we have already seen that house. We have 16 made an offer on that house, and we have gone 17 absolutely as high as we can go, 325,000 or something they said. 18 19 Q How long was that before they 20 ultimately looked at the 100 Mooreland property? 21 A At least a year. At least I would 22 think at least a year. I don't really know the date 23 of that. I didn't show them the house because she 24 told me that they had already seen that house or 25 maybe I called them on some other house. It Geiger & Lori,a Reporting Service. 800-222-4577 "- ,.,..... .\' W 0: rr.'." ..., --"-"-"""'"9-., 6 1 certainly wasn't on this house because this house wasn't for sale. And I saw a little light went on in 2 3 my brain that they were willing to pay more than 4 200,000, so I will just put that back here in my 5 brain and they really want a special house. That was 6 when it first become obvious to me that they could 7 I mean I honestly afford something more than 190. 8 did not know. I never question people much on their 9 price bracket or anything. I just, you know, I'm not 10 real nosy like that. So when I figured out that they 11 could afford to pay a lot, I felt, well, file that 12 back in the brain because this is the kind of house 13 that I like to list, the kind of house I like to 14 sell. 15 Q How long had you been discussing the 16 possibility that Nancy would be selling the Mooreland 17 Avenue property? 18 A Well, I can't say how long I had been 19 discussing it because I don't -- you know, I was a 20 friend of Nancy's. I was a friend of Michael's, and 21 I knew that Nancy actually had said at one point that she wanted to keep the house. So I wasn't sure that 22 23 that house was ever going to come up for sale. 24 Q When did you come to the realization 25 that Nancy would be interested in selling that Geiger & Loria Reporting Service. 800-222-4577 '" ., " ~,~ o 0" ,1>[ .' ~ - " 0,"""'.... ;~-, ~ --'''''''''~~ 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 7 1 property? 2 Well, what she said to me was, and I A 3 I don't don't even know if I saw her at church. 4 think I really called her about that house, but we 5 would run into each other at church and things, and 6 she said we are working toward a settlement, and it 7 seems like I'm going to sell the house after all, and 8 it was very exciting. She was going to go to 9 Baltimore to go to school. Q Let's go back in time. Mr. Stout testified that his recollection was that you contacted him or he spoke to you -- that wasn't clear -- roughly eight to 10 months prior to May of 2003 indicating that there might be a property coming on the market, the 100 Mooreland? A Right. Q So at least at that point, you had some sense of a possibility the house would sell? A I had some sense of a possibility that it would sell, but Nancy had also told me over the two or three years or however long this took, this divorce -- I don't remember -- that she wanted to keep the house. If she could keep the house, she was going to try to keep the house, and then I guess she told me that they were working toward a settlement Geiger & Loria Reporting Service - 800-222-4577 L c I_~ ~~ ~"~~,- - . o Of i ';l 'I ,., 'I' ~, Wii 'be!!! r 8 1 and that they were going to sell the house. So I 2 told the Stouts, but I didn't tell them anything 3 about a price because I said I don't know when this 4 is ever going to happen, if ever. 5 Let's get to the issue of price. When Q 6 did you discuss with Nancy what you thought the price 7 range would be? 8 When it came time, I said, Nancy, when A 9 you get the deed in your name and we know that all of 10 this stuff that y'all have been working or for years 11 has come down to the settlement and you have the 12 deed, you call me. When you get the deed, you call 13 me because I cannot possibly tell you what the price 14 is going to be until this all plays out. 15 Q Let's go back. 16 A To the time that it closes. 17 Q You had no idea when Nancy first talked 18 to you even if it was eight months prior to this May date what the price would be? 19 20 A I don't know how long this went on. 21 Way, way back when Nancy was talking about a divorce, 22 she said to me I'm going to need as much money as I 23 can possibly get for this house, and she said I'm 24 hoping that I can get 250 or something like that she 25 said to me, and I said I think you can, Nancy. I Geiger & Loria Reporting Service - 800-222-4577 I ~ - tfI"'l. '.. ..\ '. Wi .0,,".... ! o """""''''''i 24 25 9 1 think you can. Q Did you ever tell her she could get 2 3 substantially more than 250? 4 No, because that market was changing so A 5 much in Carlisle. You have no idea. Nobody could 6 keep up with the inflation in that market. And 7 that's why I finally started saying to Nancy, look, 8 Nancy. When you get the deed in your name and you're 9 ready to sell this house, I will tell you at that 10 time what I think the house is worth. 11 Q Do you recall when she first contacted 12 you and indicated to you that she had a deed in hand? 13 A Well, I guess it was sometime around 14 this listing date because I said I'm not doing 15 anything till you get the deed. 16 Q Did she show you the deed? 17 A No. 18 Q She just told you she had it? 19 She told me she had it. I kept A 20 stressing to her don't even talk to me until you get 21 the deed because this is something that you're working out and if you're selling the house, then 22 23 when you get the deed, then you're the person I'm dealing wi th. Q The bottom line here, Mary, is that Geiger & Loria Reporting Service - 800-222-4577 . , o 0; t"""1 Wi -.'~''''''''''~''~1 10 1 when did the first time Nancy hear about a $345,000 2 list price from you? 3 Well, I guess when I listed this A 4 property. 5 So you would have handed her this Q 6 listing agreement which I'll show you marked 7 Defendant's Exhibit 4 with this price in it never having said a word to her about the value prior to that? A Oh, no. I'm sure we sat down that day and talked about the price. 8 9 10 11 12 The day you gave her this contract? Q 13 Yes. I'm sure that we talked about it A 14 at that time. 15 Q Would you recall the circumstances? Do 16 you recall having a meeting with her and filling this 17 out while she was present? If you recall. 18 I don't think so. A I mean I don't think 19 that I recall whether I sat down with her or not. I 20 knew by then that her friend and attorney Paula Light 21 was involved. 22 Q Did you talk to Paula on the phone? No, I did not. 23 A 24 Q The only person you dealt with was 25 Nancy on this? Geiger & Loria Reporting Service - 800-222-4577 ~" ~1 12 o 13 o "'~~~ ~I-~~~ 11 1 A Yes. 2 And do you recall how long it was Q 3 between when you gave her this document with the 4 three percent commission in and when it was initialed 5 and given back to you at 1.5? 6 A Must have been pretty quick, but I 7 don't know. I can't tell you. I don't know. She 8 had Paula look at this. This is, you know, all this 9 is my handwriting, and then she went to see Paula and lO Paula told her that she couldn't really afford to 11 have a realtor, you know, with that much commission being paid, and so forth, that she needed all the money she could get and so Paula in Paula's own 14 handwriting Paula changed all these commissions, and 15 so forth. 16 Q Whose writing is it on the bottom that 17 if you sell? 18 A Mine. 19 Q That's yours on the bottom of page one 20 about the 2.5 percent commission? 21 A Yes. 22 Q And, again, you're saying that you 23 never had any discussions about list price? How did you arrive at $345,000? 24 25 A Well, frankly I thought frankly that Geiger & Loria Reporting Service - 800-222-4577 ~. ~.'."'. w t~I' lb.... L" ~-' o -'''''''-<!'''I''''"'''''''r~ 12 1 the Stouts would pay that because they really wanted that kind of house. That's what I thought. After I 2 3 ~ealized that they had been willing to pay 325 for 4 Judge Jacobs' house, a little light went on in my brain that said to myself the next wonderful house 5 6 that comes on the market in the historic district or 7 the Old Mooreland area, I now realize these folks can 8 pay 325. 9 What did you start out talking about Q 10 with Nancy about a price for this? Do you remember? 11 A Well, we really -- I have to keep 12 telling you we did not discuss price after she was first going to get this divorce when I first kind of knew about it. She was concerned about, you know, whether or not did I think she could possibly get 250 or 275, and I said I think so, Nancy, because by then 13 14 15 16 17 the market was beginning to go up. I said I think 18 so, and that's it. 19 Q Any idea when that conversation was? 20 A Ages before I listed it, but prices 21 were going up in Carlisle. 22 Q What does ages mean? A year? Two 23 years? Six months? 24 A I don't know how long their divorce went on, but I would say from the moment that I knew I 25 Geiger & Loria Reporting Service - 800-222-4577 ~ I .~ o 0, 1-'. ....., 1'---. ,-' 0', .. ~''''''''''T 24 13 1 they were talking divorce and Nancy said I would like to stay in the house until the boys are grown or gone 3 or something like that, and I don't know how long it 2 4 was. 5 Let's go back to May of 2003. When did Q 6 you first discuss a sale price for this house with 7 her ballpark? Within a week? Two? Three? 8 A With Nancy? 9 MR. ANDES: She's answered that. 10 Yes. I said -- A 11 MR. CONNELLY: She hasn't. She's all 12 over the lot. 13 I'm not allover the lot. A I 14 discussed I said to Nancy, Nancy, when you get the 15 deed in your hand, then we know that I am dealing 16 with you to sell this house. 17 BY MR. CONNELLY: 18 Q Stop there. She got the deed and 19 called you? 20 A She called me. 21 Q When she called you saying I have the 22 deed, you don't recall when that was, but you know that's when she called? 23 A Yes, I guess so. I guess that's when 25 she got the deed. She said she got the deed. Geiger & Loria Reporting Service - 800-222-4577 '-'1 - 0 1 2 3 4 5 6 7 8 9 10 11 12 0 13 ,. , 14 15 16 17 18 19 20 21 22 23 24 0 " 25 r~"'''''''" 14 Q What price did you discuss with her when she called and said I have the deed? A I said, Nancy, you're going to be very shocked to find out that this Carlisle market has been inflating. It was going like 10,000 a month, and I said this market has inflated to the point where I honestly think we can ask almost up to 350 and at that point I was thinking to myself and there go the Stouts as my possible buyer because they had already told me they couldn't possibly go one penny over 325, that that was there, but I thought I am representing Nancy. It's a very special house. The market's been inflating at this huge wild rate. I think we can go as high as 350. I'd like to go a little bit less, Nancy. How about 345. Q And she said okay? A She said okay. Q What was her reaction when you told her 350, then 345? Do you recall? A She was happy. Who wouldn't be? I think she was quite thrilled, and I think she had enough faith in me to think that I was going to pull it off because it is my market, and I don't do, you know, frankly my office says where is your market analysis. Where is your appraisal. I said I don't Geiger & Loria Reporting Service - 800-222-4577 ", O;~, "',' ~,'\\ W 0"0 1:" ;, 'M,_ Ii -""""'W"~''''''''T 15 1 It's right up here. I know what the market do them. 2 will bear in Carlisle. 3 You then prepared the listing contract, Q 4 gave it to her? 5 Right. A 6 Q She spoke to her attorney? 7 A Yes. 8 The adjustments were made. She Q 9 initialed them and the deal was done? 10 A That's right. How many people looked at the house? Well, I am sure that Dr. Bowers and his 11 Q 12 A 13 wife, Ann, were interested in the house. I called 14 them, and she looked, and I think she was horrified 15 at the price I had put on the house. I think she was 16 totally shocked. 17 Q Did they make an offer? 18 A No. She said will 300 do it, Mary, and 19 I said I don't think so. If you want to write it up, 20 you can. I will be happy to write it up. But I 21 don't think it will do. I mean people that are not 22 in that market in Carlisle like I am in that market 23 don't know how fast stuff's going up. You got to be 24 right there to know, and she couldn't believe it. 25 She had deep regrets. In fact, the poor woman just Geiger & Loria Reporting Service - 800-222-4577 -, '" I" , 10 1 ,- i' 2 3 4 5 6 7 8 9 10 11 12 0 13 ;:[,. ". , .. 14 15 16 17 18 19 20 21 22 23 24 0 , 25 '~M'~~~I 16 bought a new house this fall because she never got a house in Old Mooreland. She was always a day late and a dollar short. Q Who else looked at it? A I don't know. I don't recall if anybody else looked at it. Q Did you have any other offers? No, nothing but the verbal offer from A Ann Bowers. Q At 300? A Yes. And I don't recall. It seems like I showed it to someone else, but I can't remember who. I guess I could look on my day timers. I don't know if Nancy remembers. Q When did you first speak to the Stouts about the price? A I don't think I spoke to them -- I can't say what I said about the price. I told them that the price was not established, that I would not be able to tell them what the price was, that there was a divorce pending, and that Nancy was expecting to get the property as part of the divorce settlement. And that when that happened, I would let them know, and they said to me, well, we're really just sick and tired of waiting here, and if we Geiger & Loria Reporting Service - 800-222-4577 ~. 0........ ,,';- , 0" 1';_:.-.'-',; .0...'...".... .""" ;~ """""~-""-r 17 1 don't -- if something good doesn't happen soon, 2 meaning not only with Nancy's house, I guess, but any 3 other house in Old Mooreland, they said we are going 4 to do a huge renovation to our own home and we are 5 going to stay where we are. 6 Before you listed this property, I Q 7 assume you walked through it and looked at it? 8 A Oh, yes. 9 Do you recall when that was prior to Q 10 preparing this document? 11 A I can't say. 12 Q Week? Two? Three? A month? How many 13 times have you been in the house? Let's ask you 14 that. 15 A 15, 20. 16 Q How many times had you been in the 17 house in the preceding six months let's say in the 18 year 2003 or 2002? 19 Well, let's see. I think when Nancy A 20 got the deed to the house I walked through it, and 21 she had a very unsatisfactory tenant living in the house is what I recall. This is a lady. 22 23 Q Did you meet the tenant? 24 A No. She wasn't home, but I mean -- and 25 I had never been in the house -- I don't know how Geiger & Loria Reporting Service - 800-222-4577 ~, ~ I' ~ -- 1 0\ ..,.J 2 3 4 5 6 7 8 9 10 11 12 0 " , 13 14 15 16 17 18 19 20 21 22 23 O. 24 25 ~.-"""'. .--: 18 long that lady lived with Nancy, but I never been in the house when that lady was living there until I went through to list it. So I don't know. I mean I don't know if the lady was there six months or a year. Q But you hadn't been in it since that woman was there, and when you went, she was living there but you didn't meet her? A Yes. She left for the day or left for the hour to, you know, give us some space so I could actually walk through the house and see what had happened, what Nancy had done to the house. MR. CONNELLY: I don't have any other questions. MR. ANDES: I don't have any questions. Thank you very much. (The deposition was concluded at 1:45 P.M. ) Geiger & Loria Reporting Service - 800-222-4577 4n G 48 :.::, .,' f'~" 19 1 COUNTY OF LEBANON ss. 2 COMMONWEALTH OF PENNSYLVANIA 3 4 I, Anthony J. Balshy, Reporter-Notary 5 Public, authorized to administer oaths within and for 6 the Commonwealth of Pennsylvania and take depositions 7 in the trial of causes, do hereby certify that the 8 foregoing is the testimony of Mary Fitts. 9 I further certify that before the 10 taking of said deposition, the witness was duly 11 sworn; that the questions and answers were taken down 12 stenographically by the said Anthony J. Balshy, a 13 Reporter-Notary Public, approved and agreed to, and 14 afterwards reduced to typewriting under the direction 15 of the said Reporter. 16 I further certify that the proceedings 17 and evidence are contained fully and accurately in 18 the notes taken by me on the within deposition, and 19 that this copy is a correct transcript of the same. 20 22 In I have hereunto 21 subscribed my hand this 23 24 NOTARIAL SEAl ANTHONY J BALSHY Notary PublIC PALMYRA BOROUGH. LEBANON COUNlY Mv CommIsSIOn Explrea Oct 9. 2007 25 , 1 ~, v IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NANCY A. REED, PLAINTIFF VS NO. 2000-2123 MICHAEL D. REED, DEFENDANT DEPOSITION OF, NANCY AMIS TAKEN BY, DEFENDANT BEFORE, ANTHONY J. BALSHY, REPORTER NOTARY PUBLIC NOVEMBER 17, 2004, 1:00 P.M. JAMES, SMITH, DIETTERICK & CONNELLY 134 SIPE AVENUE HUMMELSTOWN, PENNSYLVANIA '0:,'" to, ; DATE: PLACE, APPEARANCES, SAMUEL L. ANDES, ESQUIRE FOR - PLAINTIFF JAMES, SMITH, DIETTERICK & CONNELLY, LLP BY, JOHN J. CONNELLY, JR., ESQUIRE FOR - DEFENDANT 0': Geiger & Loria Reporting Service - 800-222-4577 . ~-~ -, . ~. -- "" c;::) = ,;..1'1 -rJ rr'I co (') -11 -1 FA 1=. , -0 Il :0 .-' () \ -; ~ ;:r; H ~ ~~ ~ .!:'" -n fV {"...) 0, '\'.: ' ,- ~J, "-.- ;, O.~,-,.' <':-,., ! c., 1 i: ) ~'fi,'''r 1 TABLE OF CONTENTS WITNESS DIRECT 3 2 3 FOR DEFENDANT Nancy Amis 4 5 6 7 8 9 EXHIBITS 10 DEFENDANT'S EXHIBIT NO. NO.3: Income tax return 11 No.4: Listing agreement 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2 PRODUCED AND MARKED 4 8 Geiger & Loria Reporting Service - 800-222-4577 - -I ~ , , . 1 0 ,-,';---- " . -- - 2 3 4 5 6 7 8 9 10 11 12 a 13 14 15 16 17 18 19 20 21 22 23 24 0 ".,. I 25 '~""'-".,. I 3 NANCY AMIS, called as a witness, being sworn, testified as follows: DIRECT EXAMINATION BY MR. CONNELLY: Q State your name for the record, please. A Nancy Amis. Q And your current address, Nancy? A 1714 Park Avenue, Apartment 512, Baltimore, Maryland 21217. Q You and your husband separated in September of 1999, is that correct? A I believe that's correct. Q Did you rent space in your home to an individual named Connie Day and her daughter beginning in the fall of 2002? A Yes, I did. Q And did they rent? How long did they remain as rental tenants in your home? A Up to middle of June of 2003 I believe. Q And how much rent did you charge them for their space in your home? A 600 a month. Q Did you include on your 2003 federal Geiger & Loria Reporting Service - 800-222-4577 ~~~ 0,'" _,'<'-,,, i; 0, 13 0; ~',T "-~r 4 1 income tax return the rent you received from them, if 2 you recall? 3 I don't recall. I believe I would A 4 have. 5 I have a copy of your return. It Q 6 doesn't appear as if you included that rent on the 7 return. Would I be incorrect in that regard? I will 8 show you a copy. 9 (Income tax return marked as 10 Defendant's Exhibit No.3.) 11 BY MR. CONNELLY: 12 Q I'm showing you a copy of your federal income tax return for 2003. Does that appear to you 14 to be a copy of that return? 15 A As far as I can tell, yes. 16 Q And do you see anywhere on that 17 return you can take a minute to review it -- where 18 you would have reported the income from the rental? 19 A No. 20 Q When did you first begin talking to 21 Mary Fitts about the possibility of selling your 22 house? 23 A Possibly a year after Mike left, and it 24 was at church or something like that, but I told her 25 that I wasn't ready. Geiger & Loria Reporting Service - 800-222-4577 "~ o ,,..,., U"',,<' ',. , CJ",'", 1'" -\' , "I :.''''--'1 5 1 Did you at any point tell her that you Q 2 would be ready to sell it toward when your last child 3 in the household was going to graduate in let's say 4 around May, June of 2003? 5 A Yes. 6 Q So when Mr, Stout testified that he 7 would have heard it was going to be on the market 8 roughly eight to 10 months before it was actually 9 sold, Mary was aware it was going to come up in that 10 time framei that was when you were prepared to do it? 11 A Yes. 12 When did you begin discussing with Mary Q 13 a listing contract for this property? 14 A Around -- it was after the divorce 15 papers were signed, so it would be after May 12. 16 Q But you never talked to her prior to 17 that about the value of the house and whether you would list with her and anything about a listing 18 19 contract being entered? 20 A I don't recall. 21 Q Do you recall telling Connie Day, your tenant, sometime toward the end of 2002 that you had discussed with Mary Fitts a value for the house which 22 23 24 was substantially higher than you thought it was 25 worth? Geiger & Loria Reporting Service. 800-222-4577 '"I 1 0 ' " 2 3 4 5 6 7 8 9 10 11 12 Cl \, : 13 i 14 15 16 17 18 19 20 21 22 23 0 24 , ' , , , , 25 !\!''ll'l 6 A I don't recall discussing anything No. with Connie Day of the value of the house. Q When did you become aware that the house was worth in the range of $338,000? A After May 12. After the divorce papers were signed. Q You had no idea prior to that? You never talked to Mary Fitts about what it would sell for? A I don't recall talking to her about it, a price, just talking to her about wanting to sell it. Q So you would have talked to her starting in '99 that eventually you were going to sell it as you lead up to your son graduating in May, June, 2003, but never discussed what it would sell for with her? A Don't recall. Q What did you list it for? What was the list price on the house? A The list price was I believe 345. Q So Mr. Stout's recollection was correct; it was 345? He countered with 338? A And I accepted. Q Was he also correct in that he was Geiger & Loria Reporting Service. 800-222-4577 0.....:........... -, 3. :rl ~) ~~ U"'.. ',- ,I "-'''''-~'''1-~''''''''''''1 7 1 advised roughly this all transpired within a week? 2 A Yes. 3 Was there any market analysis done by Q 4 Mary Fitts on the property to determine what the list 5 price should be? 6 A She did a walk-through of the house. Q Was she familiar with the house that she had been in it before? A Yes. Q She sold it to you? A Yes. Q And you paid $205,000 for it in 1997, is that correct? 7 8 9 10 11 12 13 14 A Yes, 15 Q I noted on a copy of the listing 16 agreement which Mary Fitts brought with her today 17 which will eventually be introduced into the record 18 that it appears there was some negotiation about the 19 commission. It looked like there was originally 20 three percent and that was struck out and 1.5 was put 21 in. What actual commission did you ultimately pay? 22 A I believe I paid 1.5. 23 Q According to your settlement sheet on page two which is Defendant's Exhibit 1, you paid 24 25 $8,450 to ERA-NRT, Inc. Is that Mary Fitts' company? I Geiger & Loria Reporting Service. 800-222-4577 p 0..'......' , ;- ~ , -;l r"......I.. .~V 1"""" ~. I ~j -~-~"'~'""""! 8 1 I believe that's the same company, Jack A 2 Gaughen. 3 And that represents 2.5 percent of the Q 4 sale price. 5 A Okay. 6 But I agree with you. I thought the Q 7 listing contract did say 1.5. When did you begin 8 talking to Mary Fitts about what commission she would 9 receive based on the sale price? 10 A After I discussed it with Paula Light, 11 and I don't remember what date that was. 12 Q Let's go back in time. The listing 13 agreement was signed on the 23rd of May. When was it 14 first presented to you to review? 15 A About a week before. 16 Q And it originally had a three percent 17 commission in it? 18 A I believe so. 19 (Listing agreement marked as Defendant's Exhibit No.4.) 20 21 BY MR. CONNELLY: 22 Q Nancy, you have in front of you a copy 23 of the listing agreement marked Defendant's Exhibit 24 4, and it looks like the commission was changed in paragraph four from six to three percent, and that 25 Geiger & Loria Reporting Service - 800-222-4577 " ," ~-- 1 0 , 2 3 4 5 6 7 8 9 10 11 12 a Ii ; 13 '" ; f 14 15 16 17 18 19 20 21 22 23 24 0, ",;,' 25 ,'-:mw'i 9 the three percent under subparagraph 5A and B for the buyer's agent, subagent was changed to 1.5, and at the bottom there was a note that said that if Mary Fitts both sells and lists the home, the total commission will be 2.5. Ultimately that's what occurred, right? She listed and sold it, so the commission was 2.5 percent. A I believe that's correct. Q Now, your testimony is I believe you first saw this document approximately a week before you signed it or do you remember when you first saw it? A I really don't remember when I first saw it. I know it was after the divorce settlement. Q It was after. How do you remember that? A Because I had made a point of not making any kind of overtures of selling the house until I knew that the divorce settlement had been signed because I knew I was getting the house. Q And you never talked to Mary Fitts prior to the signing of the agreement about the sale price of this house? MR. ANDES: I think she answered that before by saying she doesn't recall. Geiger & Loria Reporting Service - 800-222-4577 , . 0.," i ~ _ _ ' ,i. -.. - Cl\ 13 iF1, ~ 10 1 MR. CONNELLY: Let me ask her again. 2 BY MR. CONNELLY: 3 You're sure you didn't see this until Q 4 Is that what you're saying? after May 12, 2003. 5 A Yes. 6 Q What did you do with it when you 7 initially received it and had the original three 8 percent provisions in paragraphs four and five? 9 A I called Paula Light up and asked her to help me. 10 11 Q Did you go to see her? 12 A Yes. Q She saw a copy of the agreement? 14 A Yes. 15 Q And that's the time she advised you to 16 go back and discuss with the realtor adjusting the 17 commission? 18 A Yes. 19 Q You then went back to Mary Fitts and adjusted it? She agreed to adjust it based on the 20 21 language? 22 A Mary Fitts and Paula Light worked that 23 out. 24 Q So they spoke about it on the phone I 25 assume? Geiger & Loria Reporting Service - 800-222-4577 '~I -~~ 1-- 1 0 \s ,'" --- .' 2 3 4 5 6 7 8 9 10 11 12 0 I~:_- _,' j' 13 14 15 16 17 18 19 20 21 22 23 ,0, 24 \ "'-. I 25 'l"",,,'''''r.Jln'!'''lfi~ _ ~ 11 A I believe so. Q When did you place your initials on this contract with the changes? A I don't know. Q Was it May 23, '03, or do you know? A It was probably around that time. Did you have any idea from any source Q as to what the value of this house was prior to seeing this agreement presented to you, the list price $345,000? A Yes. I had discussed that price with Mary and then I got this sheet. Q When did you begin talking to Mary about this price? A Sometime after May 12. So you had no idea that this was worth Q $345,000 as a list price prior to May 12 of 2003? A No. Q So this was a complete surprise to you? A Yes. Q And you never spoke to anyone else about being surprised at the sale price or at the value of the house, specifically the individual Connie Day I spoke to you about before? A I may have expressed some surprise to Geiger & Loria Reporting Service. 800-222-4577 01 0,., I.tt.. ,,,,:1 10.;....... " -,1 )~'r"'OF'~1 12 1 her. 2 Q When? 3 I don't recall. A 4 Could it have been in late 2002 or Q 5 early 2003? 6 A I don't recall. 7 Q Do you recall having a conversation at 8 a meeting with Mr. Andes, Mr. Kissinger, Mr. Reed and 9 you discussing settlement proposals several years 10 ago? 11 A Yes, I remember we discussed things. 12 Q And do you recall discussing the 13 relative value of the house versus the relative value 14 of his law practice and his interest in the practice? 15 A I don't believe we discussed the value 16 of the house. I don't recall that. 17 Q If you did, you don't recall it? Is 18 that what you're saying? 19 A Yes. 20 Q So when you decided that part of this 21 deal would involve you keeping the house and him 22 keeping his interest in the practice, you didn't know 23 what the house was worth? 24 A Not at that time. Only through 25 property assessment. Geiger & Loria Reporting Service - 800-222-4577 t"""r '~1 ;CJ; 13 ...'0.... R:" ~> '. ) "'-<~ 13 1 Q Okay. And the property assessment was 2 218,000, correct? 3 A Yes. 4 Fair market value, 229? Q 5 Right. And I think Paula Light actually filed A 6 Q 7 a transfer tax affidavit that said that the fair 8 market value is $229,820; you recall that? 9 A Yes. 10 Q But you have no recollection of 11 discussing that at a meeting about the value of the 12 house, but you were aware of the assessed value? A I was aware of it March 1, 2003, which 14 lis what the date is on here. That's the only time I 15 was aware of it. 16 Q Were there prior assessments done? 17 A No. 18 Q As part of discussion in equitable 19 distribution, you never discussed the value of the 20 house or got any indication through assessments as to 21 what it was worth? 22 No. I did not have the house A 23 appraised. 24 Q I am not asking about appraisal. I am 25 asking about county assessments. Geiger & Loria Reporting Service - 800-222-4577 'l'"~~ O,c.,. iJ::.. ~ 12 Cli 13 0..1'...... ;1 l ".- 14 1 A No. 2 Was the house assessed during the Q 3 period you lived there that Mr. Reed didn't? 4 Yes, it was. It was assessed on March A 5 1,2003. 6 Q Was it assessed prior to March 12, 7 2003? 8 A No, not that I am aware of. 9 Q And did you discuss the assessed value 10 with your counsel in deciding what to do about 11 equitable distribution? MR. ANDES: She's not going to answer questions about what she discussed with her attorney 14 because of the attorney-client privilege. 15 BY MR. CONNELLY: 16 Q What did you believe this house was 17 worth in March of 2003? 18 A I believe that it was worth slightly 19 more than 218,206, but I didn't think it was worth 20 much more than that. 21 Q So -- 22 A Probably 230. 23 Q By using the common level ratio which 24 is how they arrive at assessments times ratio, that's 25 what came out to the 229 figure. Does that sound Geiger & Loria Reporting Service. 800-222-4577 9"7'1~ - ~"-..'.' ,- .\ it'" J 0..'........ r ' i"""'r: V 1'_~I'f 15 1 more like what you thought it was worth? 2 A I didn't do any math. 3 So you thought it was a little higher Q 4 than 218? 5 Slightly, yes. A 6 By the time you saw that and believed Q 7 I think you used the it was worth slightly higher 8 figure 230 -- had you spoken to Mary Fitts about 9 selling your home? 10 A No. 11 So she had never discussed price with Q 12 you prior to March of 2003? 13 A No. 14 Q Before she gave you the listing 15 contract which I assume you can identify a date by 16 determining when you reviewed it with your counsel, 17 did she discuss with you what the list price would 18 be? 19 A I'm not sure. 20 Q Well, let's think this through logically. You didn't just suddenly get handed a document listing your house for $345,000, did you? You had to have some discussion. 21 22 23 24 A Yes. We did discuss it, but it didn't 25 take much time to get things moving. Geiger & Loria Reporting Service - 800-222-4577 I ~.~ ~""" -~--~ ;1"'."1' 'wi) '-I ;~p 'QJ.' ','t, ,,,,( -":- ~ 16 1 Now, on your federal income tax return Q 2 which was marked previously Defendant Exhibit 3 -- 3 you have that handy? Here's a copy of it. If you'll 4 go to about the fourth page, third page from the end. 5 It's identified as sale of home worksheets. Do you 6 see that? 7 A Yes. Q Sale price 338? A Yes. Q You put down as an adjusted basis 200,000. How did you come up with that figure? Is 8 9 10 11 12 that what you thought it turned out to be 205, but 13 you thought it was 200? 14 Yes. I probably did think it was 200. A 15 Q And you were aware, were you not, that 16 your gain here would be excluded under federal 17 regulations for taxes? 18 A Actually, no, I wasn't aware of that. 19 Q When did you find that out, when they 20 did your tax return? 21 A Yes, and I don't even recall being, you 22 know I don't recall having anything to say about 23 it. I really don't. I don't understand these 24 things. 25 Q So you were aware you reported an Geiger & Loria Reporting Service. 800-222-4577 1 0 ):",--,':-, , 2 3 4 5 6 7 8 9 10 11 12 0 I 13 14 15 16 17 18 19 20 21 22 23 24 0 1- ," 25 "-~. '~.r -~ 17 excluded gain of $138,000? A Yes. Q And I believe your settlement indicates you actually received -- the settlement sheet actually indicates you received a check at settlement for $163,442.86, is that correct? A Yes. That's correct. (Brief recess.) BY MR. CONNELLY: Q Nancy, when I spoke to you about the bottom line on the settlement sheet, the 163,442.86, that was really a net proceeds check to you; you had no other financial obligations, is that correct? Your mortgage was paid off; there were no other debts? A Yes. MR. CONNELLY: No other questions. (The deposition was concluded at 1:25 P.M. ) Geiger & Loria Reporting Service - 800-222-4577 ~ o G e ',111W 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I' 1 2 3 4 5 6 7 8 9 18 COUNTY OF LEBANON ss. COMMONWEALTH OF PENNSYLVANIA I, Anthony J. Balshy, Reporter-Notary Public, authorized to administer oaths within and for the Commonwealth of Pennsylvania and take depositions in the trial of causes, do hereby certify that the foregoing is the testimony of Nancy Amis. I further certify that before the taking of said deposition, the witness was duly sworn; that the questions and answers were taken down stenographically by the said Anthony J. Balshy, a Reporter-Notary Public, approved and agreed to, and afterwards reduced to typewriting under the direction of the said Reporter. I further certify that the proceedings and evidence are contained fully and accurately in the notes taken by me on the within deposition, and that this copy is a correct transcript of the same. In I have hereunto subscribed my NOTARIAl SEAL ANTHONY J BAlSHY Notary PubHc PALMYRA BOROUGH. LEBANON COUNTY My ComIl1ls&lan Expires Oct 9.2007 -1- "- <- f I ~ I ,.. ~~IiIll~ JlIlfll ~~, ,,,_... ~ ,,-.. . ~ " "_'U/.* 0_' ~. ~_, ~~> ~_n ~-."' o . '-;'-, 0~ ........, ~"~,, '-Ii I ,'.i ,\.. < ",,'-~_<P,,'-"I"':"h" -~ o "'...~"~ _~fj'1lI1ll'llIl!'!!'Il1-~"'tWl;'_~~~~r~.ifPl1"::<P't-H;;;jl",1"'~~~~~~'lIlItIIIJl'i~~ JUN-23-2004 14:43 Fonn 1040 L-abel (See instructions on lJalIo 1S.) Vselhe I~ label. Otherwise, please ptint or typo. presidential . . Slection Campaign See a .1S. 1 Filing Status 2 r" Check only 3 g e ,box. 6. exemptions b c If mOl'$ tha;n five 'c!6pendenls, . ""'''''9021. Income Attach FOt'lnS W-2 and w~2G here. A,,"O .ttach Fc>rm(.) 1D9S-R if tax was , withhold. If )Iou did not get a '(1-2, see page 22. EnelO$B. but do not attach, any payment AJso, pl.ase use Fonn 1040..V. Adj usted Gross lncome -'"~""-'1~. Deoo"",om oI1heT_lntornal Revenue~ U.S. Individual Income Tax Return 2003, P.02 199 , endl IRSUseOnlVaDonotwrlte()\"sta thiss ace. .20 OMBNa,154S-0 4 Your social seew1ty number 234-86-8038 L ... B E L Porlne Jan. 1.Qac, 31 2003, orothertax r YClLuilr;tl narr1B and initial Last name Nan Alnis innin Apt. no. 5J.2 .... Spc;tUIIl;', $QGW.l $ecP,n'ity number .... Impertantl You /Duolomor your ssN(s) .be..... If S )oint rvtum, sp.llrat name Ii InIIial la$lflartl~ I-l E R E Homaacol1lS& (numbersnd &trae1).If)'tll,ll'llve a P.O. boX, Ms page 19. J. 714 Park Avenue CiI'i,-'.roost_.otato, al\d ZIPeod..W,..,_,Ienl\91ladll_, ..._1S. Baltimore MD 21217 It. Note. Checking "Y.... wID not chonge your Iil>C or reduce your refund. ,. Do . or our s eo n fllitl a' im return. want $3 t. to llIis fund1 . ...... . .. '" Y,s No 8l1'Q" <I li\::':~=o~":.=uI'~;::f-.li~~.J: Marnetl1'iling jOimly (even If only one I'Iad iru;ome) this chltd's f'lMle t1en;. lito: MlIill'l'ied filing S41Pil1ll'8telly, ~ ;PO~'$ SSN above 5 0 ~ VoI1dQW(er) WIth ~ent QI1ilcl.. (See page 20.) aM full name hel't. Yourself. If your parent (or someone ele:e)!;an c:laim you 8S a dependlilr'lt On his or her tax return. do not check box 6a n SDOU" ............................................................ Oopendents, (3) Dependent'Ei (<I)CI<.W (~ Deps_. ~~..IiI'" _"'pto rd1lld 1'1 F...'nom. ~a1.seclJl'llY number laXcrodft LQ'l:nem~ ... Peu.r T. Reed 161-66-1088 Child , 2!:l d lotalnumberofe m 'onsolaimed ...... __ .......... .... .._ ....... . ..... 7 wog.....,'""',.t.,.,0lt._cnFO'"'(.)W-2 .....; ....... ......... .... ....................... .,..... b Taxable interest. Attach Schedule B tfrequired ........... ..........,...... _.................... b Tax~empt interest. Do not irlQlude on rtneSa _...... '... .,.._... 8b 9> Ordin.')' dividend.. Attach Schedule e ifrequirod ......... __.................................... b Qu.JtifieddividendG(&eepase23) .........,........................ 9b l' 410 10 Taxable refunds, O,"dilO, or offaalO of s_ and local inoom, taxes (.~o ""go 23) ... .... " .. . .,. .., . 11 Alimony received .... .............. 0... ..... ........... ...... 0.. ........... .0..... ........ 0.. 12 6u.in... income or (10$$). Attach Schedulo C or C-EZ ....... --............................ -- 0 13a Capital gain or (IDSS). Altoch Schedule 0 if required. If not required, check here" .............. ' " W be. on 130 I. choc:l<O'd, an\ar post-M.y 5 capital gam diSll\bu.ons 13b ::. :~i:;~:n~~~~~~~..:~. Fo~t .......;..........,.. '1'';; 'T~b~ ~';~r;;(;';;~ ;','~~~,') 1:: 16a Pensions.ndaMulde. ...... l:!!LJ , b Ta><ablaomount(...p.25) 1Gb 11 Rental reGlI estate. royalties. partnerships. S eorpD~Dn!i. truit$. etr;, AttaCh SQhe:dulel E ............ 1'1 18 Farm income or (IOls). Attach Schedule ~ .... .',.. ._n..........;................_........... _0. '18 ~:. ~::;;S~:~:b=:s~.I~~. "~r" ""'" ........., ". r~..T~i,j~.~,;,;;~.t.i.;.;.; ~~~1,:) 2~~ 21 Olller in!lOme. List type & .ml (see pogo 27) ......... ..... __........................ d......... I 22 Add the amounts. i e far ri ht column for lines 7 throu h 21. This Is ur total income .. 22 23 . Eduo_"peAS..(..epoge29) .......... ..... ................ 23 24 IRAdoduclion(seepage29) ...........................____.... :lA 25 student 104iln interest deduction (see page 31) 25 2.6 Tul\ionandfe.e&~l't(seepage32) .................... 2 27 Moving expenses. Attach Fonn 3903 ........ ...... --. ....... . 28 On..haff of ..If-employmanl1a,,- Alla~~ se~~';~I~ se' . . . . . . .. .. .. . 29 Self-$fnpjoye~ health Insurance deductIon (see page SS)..... . .. .. - 2.9 30 S.ff-employad SE~, SIM~lE. .nd qualified plans .......... 30 ~1 ~enalt)' on ~rl)' withdrawal of savings . .. . . .. . . , . . . . . . . a1 3~ AUmOnypeid b Recipi.nr.SSN"'........................... 32a 33 Add lin.. 23 through S2a . 34' Subtractlil"t6 33 from line22:;:hi~'i~: ..~;~d-~~~d..~-;;i~~~~~. ........ ..... .0'.. ... .... ..- ..~ fo( Oisc:lg&ur'e. ~r-iva~ Ar;t, ilnd Paperwork Reduction Act Notice. see page 77. oM \- 1~11!""'I'"""r-~'!k--', No } No.ofb.... dlBCkedon _Itndeb 1 No. MChlldrcn- c)tI6"wtig; · lived with 1 YOLl -... . did not live 211""\h ytlu due to dlvo~e or separation . ("0 !lOg< 21) _ Dependents 01'1 I$Q'noten.. tered abQvt _ Add nl1m~1'$ on lines ~2 above ... ~ 1 427 33 3 -3 097 123 000 34 647 221 34 426 Ferm 1040 I2lD3) - P.03 ,TUN-23-2004 14:43 F'aid Pre parer's 'imI'. ....... (Of .. Use Only ,..... .......pIoyod). r addres&. and ZIP code. Form 104 2003 Tax and Credits standard 'DecluetlOft fo,- -1'00'" who chtlCked any boX on rifle 3e\1 or 3$b or """ClltI'" claimed a$ a ....'1OeIlt, .eo Pl'!/O 34. -AIIOtl'lCtti: SittgleOf Maii1edflllng separalety, $4,750 MalTkldfiling pnllYo' auar....g widDw{sr). $9.500 HE!lBdof ~=Oldl ~ Other Taxes jpa ments "'. 1fyou haw a qualifying ctl~C1. :!nacn SatlBduleEIC. Refund Plrect deposit? a&e paQ& 56 and fir in 'lOb, toe, ;.oa 7Od. Amount You 0 e ihird Party Pesigm,e Sign Here J, oint return? IlL $~paso 20. ,. Kiiop a copy fOr your cords. .~ "'~~~ . ,\ 37 39 3!l [ I [ I Nan l\mi.s ::. ~:fromtin~::~::~~::=~.) .2::1siae:......B.~hri;;......:r.;ti;I.~;.;;......... if: {~ Spou.. was bom belore January 2.1939, !llind.} oheoJced Jo 360 b ~J~."I:~~~P~l'a"'~~Ile<I_or.................... Jo 361> ltemi..o daduoliono (from Schedule A) 0' )'Our standard deduolion (.eelef\ matQin) ... , . . . . ... . . Sl,Ibtract line 3T from frne S5 .......... ...................... ................................., IfUne 35 is: $104,625 or Ien. m~1y $3 o~ totsl ntBnberof exemptic:lns claimed tin Ilnfi!:Gd.lflbie3Sluwer$10;4.6a$, see1l1e 1onp.35 ........................................ Taxable in...... Subtraot ,.. 39 from line 38. If ,ne 39 i. mOre tIlan line 38. enler 4- .. . . . . . . . . . . .. ~ax[r =4:~ ~~~.~~y~~.~.~:....~..~. f~S).~~~.............................. Alterna""e minimum ta>; (.... page 38). AlIaoh Form 6251 Add lines 41 and 42 .......................,................',..,....'"...,............. f~n laXored~. AlIaeh Form 1118 ~requlred .. ................. 44 CredR lor child and dependent care expenses. AlIach Form 2441 .. 45 Credit lor the .Id.~y orthe di.abled. Attaoh Schedule R ........... 46 Educarion c:rtdits. AUacn FOI'In 8863 ..........,................. 47 Relinoment ...ings con\Jlbu\\o". oredit. AUaeh Form ee80 ......... 46 Chnd tax cre<frt (see pege 40) ....,....... ....... .......... ....,. 49 Adopllonct8dR'_OI'Orm 8839 ..........0 ...... ........ .... 50 Credits from: a form 8398 b Form 8859 51 Othor "",dlls. Chao!< applioable bolc(e.): a 0 Form 3800 . . . b o Form 8801 0 0 Specify . .......... 52 53 Add Une. 44 through 52. The.eanj your total on:dil:l ....................................... 54 SUbtract Ii.. 53 !rom line 43. Imne 53 is more than Un. 43 enter 4- .................... . 55 Sea...mpl<>ytIlenllllX.AlIathScheduleSE ..... ......, ................ ........ ..........' ....... 56 Sooialsecurlty and Meclloare lax On tip income nol reportecllo employer. Attach Form 4137 ... . ...... 57 Tm: OIl q~lffied ~ns, InoIl,IICIlng 1FlA.s, lJncI other 1aX.1iWoreO' accounts. AtI8cn Form 5329 it I'tClUifecf .. . . . . . . . . . . . . 56 Aduan.. eamed Income ored~ plljlTTlents from fonn(.) W.2 ..... .. ... .. .... ... .... . .... .. . " ... .. 59 Househoklamploymonttaxes. AltachSohedUleH ......... ........... .....".. ...... ........,... 60 Add lines 54.. 59. This: is ur total taX ... 61 FederallncometaxlNllhheld 1rOm Forms W.~and 1099 ............ 61 62 2003 esUm.led lax paymanls .nd .mount appliod from 2002 retum 62 63 Eornedincomeoredll(E1Cl................................... 83 64 Ex.... .ooial...urily and tier 1 RFlTA lax withheld (see page 56) 64 65 Additional child lax oredlL Attach Form 8812 .. .. . . . .. .. . . . . .. .. . . . 65 66 'Amo"'I':"'~ _ ....05Ilor exten.iOn to role (... page 56' ............... 66 67 grnl~m ;a 0 Fonn 2439 b 0 Form 4136 c 0 Form sea5 157 68 Addlin9Ei611hmughgf.TheaesR!' rtotal ayments .... ............... .................. 69 If line 68 Is more than line 60. subtract line 60 from line es. This is the amount you overpaid ..7~ =~I :;::9 )'Olu want refunded to 10~' ~. . ';.~',"O' Ch';';~:~s' n ~~iri~'''''''' .. tI Account number . I 71 of line 9 au a Ii to our 2&04 estimated: tax.... 71 7% Amount you owe. Subtract Une ee from line 60. For ctelails tin how 10 pay. see page 51 73 Estimated:lax ... e58...__ _.. __... .. . ...." 73 '26 Do you want to allow anothor parson to di.cuSOIhIs retum w~h the IRS (see page 58)? v.... Complolethe follOwIng. Cesignes's Pel'5Onslldentlfloatlcfl number(PIN) II- I 1 name .. Pr arer PhclI\O no. .,. UMer' DOnal:lln of j:Ieljuiy. I dedare ~t J heVe eJCamIned ttm; tel:Vm aM accompanying $ChBduIes and teme 'imdito 'the best of my , 3f\O bM'iM'. thBy al"El true. DCInect, sDi:I compl4$. otcitll1l1iOll Ofll~ loth81'8'lan tDpayef) is bssed an an infarmst!oli DfWhich ~ hM any' I<ncWICd$a. 'r'gur Signature Date Yow oooupafion " ~me phone ntlmb&t Stucien-c 40 41 7 000 r 27 426 I 6 100 21 326 l' , i 2 560 42 43 44 45 46 47 48 48 .sO S1 52 r 2 560 ! , " j' , I 2 000 560 441 " I 1 001 . r I I SpooS!'$lignlb.lre. If ajOint.I'tMn, both mUlit lllign. Date $pol.l8e's ocovpatiCll'l [ '~'Ob~~N82-;:N l 25';'11:121312 I Dale Chec:k; If 4/08/04 "'" InQ. Sui~ 103 PA 17013 . aller F:i.nanQ:i.a2 Gro 17 1!:as'l: High St:.reet:, CarJ.isJ.e BIN Phone no. 717-243-8553 F_1040 (m.) JLJN-23-2004 14:44 P.04 . , SCHEDULE C I \F"",,1040) - Oapal'lmCCltofllteTl1l:ssury __ _ . h't~1'n2!1 Revenue Sarvies fQ9 Nama of propric,t'OJf ] Nancv Ami.. A Principal business or pl'Ofe$$ion, including product or e:ervlce (see page 0-2 of the instruotiQnio) Author and Artist Bu:siness narne.lf nQ separate busine5$ name, leave blank. Profit or Loss From Business (Solo Proprietorship) .. PBrtnership$. joint ventures. ate.. must file Foi'rn 1085 or Form 1065~B. . ._ _. A..chment .... Attach to Form 10040 or 1041. ~ See In!itruetions for SchtdullE! C cForm 10401. $eQ~ceNo. Soci.1 $ec::urlty humber (SSN) OM6 No. 1,45-0074 2003 09 ! c 234-86-8038 B Enter cads frc:lm pages Co.?, e, & 8 I ~' 7115:10 o Employer tD number (EIN), ~ any '2 3 Business addres. (Including.uite or room no.)~ ...... ?:~;L.g.. I.l~;J,:LY.. .p.:!-.~~............................................................. CI .townor ostoffice $\dte.andZlPcode Carlisl.e l?A :17013 Acoounting"'elhod: (1) X Cash (2) Accrual (3) Olhe'(.pecify)~ ......."....................lVT.......... 011;1 you "materially participate" in the operation of this business du~in9 20031 If "No," see page C-3 fer limit on IO$$t$ ............ ~ Yes No If austarte ora uiredthlsbuSinessdurin 2003 eheekhere .........................."...."................................. to Income Gross receipts Or salas. Caution. tf this income was reported to you on Form W-2 and the "Statutory ~mployee"bOxanthatformw~$(:hQoked.seepageC..sandgheckhe'e ..,.............................. ... 0 1 5 230 Retv~n$andaIIO\lV8nces .,. .................... ...... ..... ... ....... ........ ..... ...... ... ...., .;. ..... ,.. .... 2 Subltacl6ne 2 from line 1 ....:. ............. .......................... ..... .......... .............. ........... 3 5 230 Cost of goods sold (from line 42,on page 2) ... ..................... ................ ..... ..... ......... .......... 4 E ( 5 6 GroliO profit. Sublrllclline 4 from line 3 . ..................... ..................................._... ........... Other.income. includinQf:!W:l&tal and stale gedne orfual tax credit Ol'tefund (see PJgec.a) ....".........,.... ............... 5 6 5 230 Gross Income. Add lines and 8 .......'..... . .... ............... ...... . .. .. ......... 7 EX enses. nter ex enses for business us 0 our home onion line 30. 8 Advertising. .. . . .. ....".... ... . 8 19 Pension and proftt-$t1~ring plans. .... ... 19 9 Car and truck expenses 20 Rent or lease (see page C.5); (5ee page C~3) .. .. ... .... .... , ., 9 ~ Vehicles, machinery, and. equipment.... 2081 10 Commisslonsandtees........... 1{) b Other business property ............... 2Gb 11 Conlracllabo' 21 Repairs and mainlenanco " ." .. .... ... 21 (.eepagec-4) .".............. 11 250 22 suppli..(notincludedinl'.rtllll........ 22 12 Depletion....................... 12 23 Taxesandlice05es ................... 23 13 Depreciation and section 179 24 Ttave:I, meals. and entertainment: expense deduction (not Included a Travel.......,......... ............. 24a In Part 1II)(.ee page C-4) ........ 13 b Meal. .nd 14 Emplol"'e benafit programs enttlrtoinment (other than online 19) ........... 14 f; Enternandaduct- IbleamOUJ"llln- . 15 Insurance(otherthanheaJth) ..... is c:11.Id,1;l Qnflns 24b 18 Inletest: (see page C-5) a Mor'tgage (paid to banl<:s, etc.) .... 16& d Sl,lbtt.;letDne24afmmllne24b.......... 24d bOther .......................... 1Gb 25 Utilltles .............................. 25 17 Legal and professional 26 Wage. (less employment credits) ....... 26 services........................ 17 1 050 21 Qtherexpenses(from nne48 on 18 Offieeex €lose 18 a e2 ....... ....... ..... ..... 27 28 Total expense$ bemrlil QxpeI1:!5E1S fol" business use of t1orne. Add lines S through 27 in columns. .. . ....... .., .. ... ... 28 5 230 S07 2 J.07 29 30 31 Tentative profit (Joss). Subtract line 2e from line" . Expense~forbu$iMssusQ of your home. Attach F~ arm;.............. .........................,.......... Net profit or (IDSS). Subtract line 30 from line 29. ........ .............. .... ..... ... ........ ...... ...... -If a profit. enteron Form 1040, line 12, and ilt'Iso 011 Schedule SE, line 2 (statutory empJoyee$, see page C-e). Estates and trusts. enter on Fonn 1041. line 3. elf a loss. you must go to line 32. 3;2 If yOI"l have a lotS, check the box that describes yout j'W~b'nent In this activity (see page c.a). -If you checked 32~, ental' the loss on Form 1040. line 12. and :crlso on Schfldulo SE.line 2 (sQitutory emplOyees. soa page C-6). Estates and trusts. enteron Form 1041. line 3. -Ifvou el'leokBd 32b. vou must attach Form 6198. For papefWork Reductio" Act Notice, see Penn 1040 Instructions. OM 211 30 3 J.23 } 31 3 J.23 } 320 32b BAIl invaEtment it; <:l.t MI(. SOma investment' Is not atl'isk... Schedule C (Form 1040) 2003 '-~-I ~ = ~ JUN-23-2004 14:44 P.05 ....1I1l01~.1~'''t ...,..............,................ '} iFonn 1040) [)epaMlant of tI\B Traasury I~\ R&Veflue $et\I'lee $9 Name(s) SllOWn Oil Form 104(1 '1 Nan Amis ,_ Short-Term Ca (.) rJetCllptiOn Q' (b) DIlte propert)' (Example iilCQt,IIreQ .l '10 $h, XV! Co. Mo" Capital Gains and Losses . Attach to, Form 1040. .. See Instructions for SchBdule D (Form 1040). ... Use Schedule 0.1 to list additional transactions fot Ii es 1 and 8. AU8chment 1JIln<:8"" 'Your soc::ial security number 234-86-8038 2003 12 ital Gal sand (e) Cate501d (MO.. aay. yr.) ses-Assets Held One Year or Less (d) Sates prieS (e) Cost orClU,erbas!s (:ses page [)...$ of (see p.\iIQIll: D-6 of the- inslrudiot'lS the InstnJcticns . (f) Gain or (loss) fur the entire year 8tJbtta e fn)m d (g) Post-May 5 gain Dr (loss)" subBlow ] 2 Enter your short.lenn totals, If any, from '1 SoheduleP-1'line2.".."....".... 2 I 3 Total short-term sales priCE: amount5. .1 Add Une$ 1 and 2. In eohJmn {d) ....... 3 4 Snort-term glil)n from Fol1'11 0262 i1nd liihQtt-tenn gain or (loss) 1tom Fonns 4884, 67e1, andee24 ................ ..... _..... .................................. ........ 4 .5 Net short"term gain or (loss) from partnerships. S corporations. eatates. 11M trusts from SctleduJo(s) K.1 ................................................................ 5 6 Short-lenn ""pitaJ loss carryover. 5ntertho .moun~ "any, from line a Of your 2002 Capita! Loss CarryowrWorksheet ............_............................ ...... 71. Combll'le lirJe; 1 tIvougl'l 5 in column (9). If the result is a Joss. enter the result. Otherwi6e. enter .0-. Do not enter more than zerO............................. ......... 110\ short-le 0" ital in or Ios$. Coynbino Ii"", , lhrou h 6 in coiumn . _ . . . . . . '" 7b Lon -Term Ca ital Gains and Losses-Assets Held More Than One Year fa) Detscripticnof . (b) !:late (co:) Date &Old (d) SaIn PrWe (e) Cost or othsr basis (f) Gain Or' (Ion) for ] propetly (example: .cql,lIl1ild eM. yt) (SBS page [).6 of ("It PJge CJ.6 of the entire year 1 h.XYZCo Mo. Q.. "-y. . Ihelnstl'uclioM ~ Subtract e fn;ltn d , 8 300 h :B:.isto Myers 11/25/9 7/25/0 7 733 14 175 -6 442 j h Gen E~ otrio . 11. 25/9 7/25 0 8 168 6 669 1 499 (g) Post-May S gain Qr (lO$$r ... -6 442 1 499 9 Enter yoUr Iong.tenn totals, if any. I'rom ScheduIeD~1,line 9,........,.... ... 9 Total1ong-term sales plice amounts. Add ines Sand 9 in column (d) ....... 10 15 901 Gain from Form 4797. Part I: long-term garn from Forms 2439 end 6252; end long-term gain or (1058) from Forms 4684. 6781. and 8824 ........................,....._ Net lone-tenn \I'Iln or (Io.s) from partnen;hips, S "'rpo<ation., ostates. and trusts from Sd1e<1ule(.) K.1 __ _ .. .. . . __ _ . on. h. . . . . . .. . .. .. . . .. .. . . . . , . . . ... . ..... . .. ...... Capital gain distributIons. S8& page 0-2 of !he jtlstroction~ ...........................................-....................-........ l.ong.tenn capKalloss carryovor. Enlertha amount, ifanY,ft'om Dne 13 ofyQur 2002~pitaf LQse.C4;trryoverWorkshB$'t ... ,..... ...... _..... __...... __.. ........ ...... I , j 10 111 I , 12 11 12 i 13 13 220 14 15 Combine lines a througn is in column (g). If zero or less. enter.o- J 16 Net loog~ann capital gain or (loss). Combine lines a IhroU9h 141~ ;';'i~;';~ (~.::::: :':::: :: : Ne": Go 10 Pert III on the boo!<. i . lnclude.lncr.l\J\'l\l\ (9) all gainS. and I09:ses ffQM oo1\lmn (I) tmm aaIea. ftchanga. Cl'I' converaklra (Inciuding lnstatlment paymenUi IBceivad) after May 5. 2003. However, do net inclLld& gain attributable k> unmcaptIJrud s9Ctlon 1250 gain, .collectibles gains and losses. (~$- dehd on ~g, j o..a of 2M. "tructions) or eligible gain on C1uallrlGd ,"malt bu$iI1GSIl stock. (SDe ~ge 0.4 of the instructions). J ~ Papo1"Nork Roduc:tion Act Notice, see Form 1040 insuuctions. Schedu1. 0 (Fonn 1040) 2003 ''"'''''h.~~~_" . JUN-23-200d 1d:45 Nancy 1Imi.s Sc:I1.dule 0 (Form 1 (40) 2003 'Taxable Gain 0' Deductible Lo 5 17a Combinalines 7b ~nd 16 and en~rthe result-Ita loss. enter.o..on line 17b ,nd go to line 18. If a gain,tmterthegain on Form 1040, line 13a,and go to line 17bbelow .... ....... ................ ..... ..... _.... b Combine line. 7a and 15. tl aro or loss. tm\81'.o.. ihen comp\ole Form 1040\hroU9hline 4Q ......................... Next: . If line 16 of Schedule 0 Is a gain or you have quarlfiad dMdends on Form 1040, line 90. complete Part IV below, . Oth_... ..Ip tile ....tofSc:I1.dole 0 and complete the rest of Form 1040. 18 11 line 178 is a loss. enter here and on Form 1040, Une 13a, the smallBf of (a) lhat loss or (b)($3,OOO) (or, Wmam.d filing separately. ($1.500))(.ee page 0-7 of the instruclions) ...............,.............. Next: . If you have qualified dillidends Of) Form 1040. rlllO 9b. COIlI]llete Form 1040 through lina 40. ell(! then COl1l/)lete Part IV below (bul.kip Iin.. 19 and 20). . Olhe e s1<i partlV I nd 1I1e....t Form 1040. Tax Com utalion Us!n Maximum Ca ilal Gains Rat S If line 16 or lina iTa is zero Of less;, skipline:Si 19 and 20ilnd gD to line 21. Otherwise. go to line 19. Enter your unreoap1Uf$d .ection 1250 gain. if any, from rlne 18 of the wortulheet on page 1).7 W Enter your 28% rate gain. fiany. from line 7 ofth. worksheet on p.ge D-8 of the instruCtion..::::::::::::::::::::::::: W If tines 19 and 20 are ~el'O, go to tine. 21~ otharwise, cQm~ Ute worksl\e9t On page D-11 of tM. instruction5 to figure the amount 10 ent.. on lines 35 and 03 below. and skip all_, lines below. 21 Enter your taxable income from Form 1040. '111040 ............. .......... .... ....... ............ .......... ...... 22 Enterthe smaller of line 1p or One 17a, but notleS$ than%e1'O ....................... 22 23 Enlaryour qualifie~ dhridell(ls from Form 1040.1In. 9b... ........................... 23 24 Add Iines22.nd 23 ............................................................ 24 25 Amount from Ii"" 49 of FOnl> 4952 ("","slmentinterest expan.e) ...... .............. 2. 26 . Subli'aOlli~e25from line 24. If zero or less. enter.Q-.,.........,................... ._.... ..... ..0..'............. 71 Sublraclllne 26 from line 21. If zero Dr 1_. __ ~ 28 Entertha ~a:IJeTofline 21 or. ................... -...........,.........................,... . $56.600 if m.rried filing jointly or quelifying w;cIow(er); } . $28.400 jf singJ/J or married filing SepatatelY; or . . $3&,050 If head of ,,"usehold .. .. .. .. .... . ........ . . . If line 27 is mQre than line 28, skip lines 29-39 and go to line 40. Enlerthe amount ftom line 27 ................................................... Subtract line 29 from IIn. 28. II zero or I.... .nter~.nd 90 to line 40 ............... Addnnesl7band23"' ............................ 31 1 410 E_thesm.'Ie.ofline30orlin.31............................................. 32 1 410 MulUply Iin. 32 by 5% (.05) ........ . .. . .,........ .,. .. . .. ..... ... . ... . .. .... ... ........ .... , ... ....... .. ....... If line$ 30 and 32 are the camel skip lines 34-39 and go to line 40. Subtraet line 32 from line 30 ............................., Enter your qualified 5-year gain. if any, from line B ofthe WOI'k$heet on piEiilge 0-10 .. " . ..... __. .. 35 6nterthe mnaner of line 34 orlin$ 35 ..... ................ ....... .... _........ .... 36 Munlplyline 36 by 8% (.08).........,.... ........ ........,.. .............. .............. ....... ....... ......... Subtract line 36 from One 34 38 ..................................................... Multiply line 38 by 10%(.10) , If lines 26'and 3D alli! the same: skip iin~40'.49 and g'c; to'lin~'50:"""""'" -..................... ........... 40 enter the smaller of line 21 or line 26 . 40 41 EOnterlheamounlfromllne 30 (If Iio<l ie' i.: i.i~~~: ~i~;:O:;" ........ .-........,..... 41 42 Subtract lin. 41 from line 40 ..........................: :::: ::::::::::::::::::::: 42 43 Addlln..17ball(!23' ............................ 43 44 Enter the amo\.ll"lt from line 32 (If line 32ls tllank, enter.o-) . . . 44 4S Subtradline44fmmline43.............,,,,...... 4s 46 Enter the smaller of line 42 or line 45 46 47 Multiply line 46 by 15%(.15)........:::::: :::: ::::: :::::::: :::: ::::::::::::::::::.............................. 48 Subtract line 46 from line 42' 48 49 Multiply line 48 by 20% (.20):: :::::::::::: :::::::: :::::: ::::: ::::::::::: :::::::::.........,.................... SO Figure thI!l: tax on the amount on line 27. Use the Tax Table 01' ia.x Rale SChlEldule$, whichever applies 51 Addlines33.37.3tI.47,49,sndSO ....,.......---. 52 Figure the ~ Qn tl1~ amount on llne .21: u~~ ~ T~ T~bl;;~;;:~ 'Ra~ SCh;d~~,' .M,j~~; ~PPliM . . . .. . . . . . . . . . , . . 53 Tax on all taxable income. Enter the $maller f Une 51 or line 52 here and on Form 1040 Ii e 41 . . . . . . - - . . . . . . . . ",rUnes 23 ~25 iff8 more than zero, see nes 31 .-nd 43 on pat'lolo 009 fol'tht iImoUntto enter: .................. -. MA .". P.136 234-86-8038 19 20 1 1 29 30 31 3~ 33 19 1 34 35 3l; 37 38 33 ~F""H~"" >, I~ Pa 2 17a 17b -4 723 o 21 326 49 50 2 489 51 2 560 52 2 699 53 2 560 Schedule 0 (Fonn 1040]2003 . J ., ~JN-23-2004 14:46 SCHEDULE SE , (Fooo 1040) Self-Employment Tax j ~~:~es~~~ry 99 ... Attach to Fonn 1040.. See In$ltuetions for SChedule SE Form1040. Name ot perBOfl with self-employment inc;ome (as shown on Fotm 1040) Social seeurity number of person Nanc 1tmis with salf..@m I ent income" P.07 OMS No. 1846-0074 2003 ~"~~:r,i"k. 17 234-86-8038 Who Must File Schedule SE I You mvot filo SchO<!ula SE if: . J. You had nat earnings from self-employm.nt from other than church ernJ;lk:lyee income (fine 4 of Short Schedule SE or lins 4e of I Long Sdledule SE) of $400 Ot more or . You had church ernplQyea income of$106.28 ormor$.lncome from services you performed as a mlnlsterQra member of a ] religious order Is not chl.m:;:h employee Income (," page Se-1). Note_ Even if you had a loss or a &mall amount of income from :self-employment, it may b~ to your benefit 10 file- Sehedule SE and usa althor .optional melhod" in Pa,tll of LOfIg Schedule SE (see paga SE.3). ] ~geptiQn. If YOUf only self-employment income was from earnlng5 515 a. mini$~f, member of a religious order. or Chnitlal"J Science practitioner and you filed Form 4361 and received IRS approval not to be laxed On thO$e eamlngs, do not file Schedule 51::. Instead. write .Exempt~Form 4361" on Fol'I'ft 1040. line 55. 1 May 1 Use Short Schedul~ SE or Must I Use Long Schedule SE? I ., Did You Receive WaCHII& 0("1)$ in 20031 1 Ye. ~. ~ Are you a minister. memb,srof ~ tCIieious order. or Christien SCieflQe Pl'3ePl'iQner who rac8Jved IItS appIOval TKlt w be U1l1:td on iBamlnOs ftOm these 4Ot.lfCea. buj you awe self-emD~r)t ..." on ather earnings? Y.. Was the tow.l Qf your wages and tips &ubjBet to $OC1aI secutlty ~r l'lIDl'Oad retiremem t8X pl...s your net earnings from- SSff-ernployment more 1hen $87,OD01 Y.. N. Are you using one of ths optional ~tnods 10 figure your nM: eElrnings (&sa paQa SE.3)? Ye. L. N. No Did ~ receive UJ;l$ tt,lb~t to social security or MGdRf'e talc dlal you did not report to YOUI' $I'l'\plQyer? Y.. Did you receive church emplDyN ifl,ome reported on Farm W-2 of $108.28 or more? . N. You Mav Use Shore SQhedule SE a_low v.. I 11 , You Must Use La Scbeclule SE on e 2 \ Section A-Short Sehedule SE. Caution. Read above to see If you can use Short Sehedule SE. I , J 1 Net fa"" profil or (I...) from Sehedule F, line 36. and fa"" partnerships. Sohedule K-1 (Form 1065). lina15a.... ...... ..... ............ .......... .... .......... ... .............. ..........................,.. 2 Net profit or (Ios.) from Selledu;e C. line 31; SchO<!u1e c-~z, line 3; Schedule K.1 (Fooo 1065), rOle 15. (other than farming); and Schedule K-1 (Form 106Q-B), box 9. Ministers and memb... of religious orders, see page 51;.1 for amOl,lnlS to report on this fine. See page SI:~2 for other inoome to report. ....,...........................,......... ,_... ............ .... ............... ,,"... "........ 3 Combine Ilnes 1 and 2 4 Ne.e.rnlngsfrom solf,.;,;';'~I~~';'~~l'M~i~';I;"li~~':i by9i:SO%(:92SO;: jii~~~'u;,;~ $400:............................. de) not tile thi$ $CneduIQ; you do not owe self-employment tax ... 5 Self-employment tax. If the amount on nne4 is: ... ---... ... ....... ...,. ........... ..... ......-..-, . $67,000 orless, multiply lina 4 by 15.3% (.153). Enter tile resull hare and on Fonn 1040, lina 60. . MQre than $87,000, multiply line 4 by 2.9% (.029). Then. add $10,788.00 to the result. I:nter the total hete and on Fonn 1040. Un. 55. 1 2 3 3 .123 3 123 4 2 884 } ........................... 6 6 Deduction for one-hlillf of self..employment tax. Multiply line 5 by 50% .5. Enter the result here and on Form 1040 line 28 For Paperwork Reduction Act Notice. see FOIlll 1040 InstrucUons. 221 schedule sE (Form 1040) :W03 I , 10M -'~'~'''I' ~ l[ .' Form JUN-23-2004 000,) 14:45 P.08 CUU\".dLIVII """~"'I~ ViViD'.....,. 1V"t..l"I~IU (Hope and Lifetime Learning Credits) 2003 ] .. Sa instructions. . p':g,."f'~;tn~eJ,'~ry ~ Attach to Form 1040 or Fotnl1040A. ~_me.l.o. 50 Name(s} shown i;ln I'Blum Your socIal security number ] Nanc Amis 234-86-8038 Caf.Jtion: You cannot take both an education credit and the tuiticm and fees deduction (Form 1040,line 26. or Form 1040A. line 19 for the same student in the $amEl ear. Ho e Credit. Caution: You cannot take the Ho credit for more than 2 tax ears for the same student. 1 (a) Studenfs name (as shown on page 1 of your tax return) First name Last name (b) Studenf. social seeurlty number (as shown on page 1 otyourtax retum) (c) QtJalifled expenses (see Instructions). Do not Bnter more th.n $2,000 for each stt,u:t.nt (d) Enler the smaller of the amount in eolumn (c) or $1,000 (e) Subtracl eolumn (d) frOm column (e) (I) Enler one-helf of the amount in column (e) .................,....................... ......................................... 2 J\dd the!! amoul'\ts in colt,lmns (d) and (f) ............... ...".......... 2 3 Tenwtive I-Iopa Ol'edlt. Add the amounts on line 2. ootUnu'l$ (d) and (t). If you are taking the lifetime learn' cl'edlt for soother student 0 to Part 11- 0 rwiss. to Part III .. .. . .. . . . . . , . ... ..... .. ... ... Lifetime Learnin Credit 4 (aj Student's.."", (as shown on p.ge 1 of your tax retum) C~uti(Jt'I: You Cilnnot take the Hope credit and the: lifetime learning credit for the $arn~ $l:udant in the same year. Add the amounts 01'1 Une 4. column (c). and enter Ihe total ....,......,.,...................................,........ Enler the sm.ller of Une 5 or $10,000 Ten tive Iffetime learnin credit. Mulri .. ii~. G.b' 20%".20 '~~d.'~ ~'P~rt ili.................... .--.. ..,............-.: II \Nable Education Credits First name Nanc Last name Am:i... (bj Student's s....1 security number (a. shown on page 1 of ur tax rebJm 234-86-'803 (c) Qualified expenses (see in.wollon.) 14 835 5 6 7 14 835 10 000 2 000, 8 Tentoti... education credits, Add Unes 3 and 7 ......... _ ..............................................,....',..... : 9 Enter: $103,000 if merried filing jcintly; $51,000 ilslngle. heed of household.orqualifylngwidow(e') ........................__....................... 9 51 000 110 Enter the CIImountftom Form 1040,line 3&', or Form 104OA,lina22 .. ....... ...... ..... 10 34 426 i 11 Subtract line 10 from line 9. If zerQ or leslil, stop; you cannot take . any educollon oredils .......,..",........................,.................".,.. 11 16 I 12 Enter. $20.~OO If married filing jointly; $10,000 ifsingle.l'lead of ! hou..hold,orqualifyingwidow(er) .....................................,........... 12 10 000 i 12 IfUne 11 is equal to or more than line 12. enter the .amount from line 8 on line 14 and go to line 15. If line 11 is teS5 than line 12. divide line 11 by line 12. Enter the re$\1ltas I a decimal (rounded to at least three places} ................................................................,...... 13 x ) 14 Multiply line 8 oy line 13 ... , .. , .. _ .. _..., . . .. ........... . ........... .. , .. _. ...... ..... .. . . , ............ ... . .. .. 14 16 Enter the amount frOm Form 1040. line 43. or FOI'lTl1040A.line 28 is ;. 16 Enterrlletotal,lfany, of}'Qvr credits from Form 1040,lirws44 tn(o~h.46: ~~.......................................... ! i Form 1040A, lines ~9 and 30 16 17 Subtract line 16rrom line 15.lf~.~.~~ i~~:~tc;~;yd~~.~~t.ia"k~~~y~d.~~tiQ~.... ......... ..... ... ... ...... ... ..... - "IT 118 Educati~~'~~~di'~: 'E~t~r.th'~ ~~~il~~'~in~~'14.~;U~.17'h~r'e'~' ~~'F~ 1040,................................. j line 41, or Fonn 1040A, tine 31 ... 18 lI'See Pub. 970 fOr the amount to 'enter' If .v'c;~ ~~~.fiIi~~ 'Form.2555: '25ss:ez: ~~ '4563 .~; ~u' ~~ ~~IUdi~~ 'l~~~~ 'fi.~;"; Puerto RiCO. I For Paperworll: Redl,lation Act Notice. .sac page 3. OM \ 2 000 2 000 :2 560 2 560 2 000 Form 8863 (2003) ., JUN-23-2~04 14:47 , . Form 104Q Un recaptured Section 1250 and Capital Loss Carryover Worksheets .1 I Na:11\e Nanc Ami.s Unr.captured Section 1250 Gain Worksheet - Line 19 tfyOU are net reporting a g.ain on FQrm4797, tine 7, QDIUI\\n (0) skip. llne$ 1 tnl'ough 9 and go to line 10. 1. II you have. seotion 1250 property In Part III of Form 4797 forwhieh you made an enby in Part I 01 Form 4797 (but not on Form 1$:252), enter the !Smaller of line 22 or line 24 of Form 4797 for that property. If you did not hav8 any such property, go to line 4. If you had more than one such property, see InstrucUons .. .....................,..... 2. Entsr the amount from Form 4791. line 26g, for \ti$ property for you whiQh you made an entry on line 1 ..................... 3. Subtract line 2 from line 1. .(Total amount is I'Gported. See- the Uru'acaptured Section 1250 Gains stmt for deUii1) ............ 4. Entelrthe total unrecaptured seotion 1250 gain inOS!,1ded on line 26 orljrw 37 of Fonn(s) 6252 from installment sale' of trade or busine.. property held more than 1 year'... instruOlions) ,...."........................,..,.......... 5. Enter the total of afl"l amounts reported to you on a Schedule K.1 from a partnel'Snlp or an 5 corporation as; "UtlTecaptured seOO'Qt\ 1250 gain" ................................... _...... . . . . ... .. . .. . , . .. . . .. . .' .. .... .. . _. ." 6. Add IIn.. 3lhrough 5....,...,.",......,.. ....." .... ........... ,.,.,..... ........."., ..,'.........'. ...... ...... 7. Ent.rthe.mallerofllne60rlheg.infrom4797,ln7,eoI(g) ( ) 7., I 8. Ent~rtt1e amount. lfany, frorn Form 4797. line 8. CO!l,Imn(g) ................. ..... .... ..... 8. t 9. Subtreotline 8 ftom 1ine7. If UI"OOt less. enter-O- .... ..... ..... .... .... ......... ........... ......... ........... ,. ." 10. E.nt6rthe amount of any gain from the ~Ie 01' exchange of~m inlmrsstln a partnership attributable to . . 111. ~~::~:.::~; ~~::~.(:~~'~:~~~~'s.;h~~i~'K:l:F~;;'; ;Q99.DIV:~;F~'24S9'a~" .... ... ,.,.,. ,..", ", .unrecaptured s&ction '250 gain" 1tQm an estate, trust, real estate investment trust, or mutual fUnd (or otl'1ettegulated investment company)....................................,........................................... ~ 12. Ent~r the .otal af any unrecaptuted $ectlon 1250 gain from sales (incJudinSllnGtanment sales) or other di$poslliOns of 1 section 1250 ~tOPSrty held more th3:n 1 year for whiCh you did not make an entry In Part I of Form 4797 tot the Yflar of sale (see instructions) .. _..,.. ....,.. .... .....,..... ...... ................... ..... ........ ....... ...... ...,. \ 13. Add line. 9 through 12 .. u......... . , .... , . . . .. .... . . , . '"'' , , , . " " .. .. ... " , , ........ . . ... . .... .... , .. . . .. . . ..... I 14. If you had any section 1202 gain or collectibles gain.or(loS$). enter the total affinE:$ 1 ) ' \h1'OjJgh 4 of the 28% RaW Ga.in Worksheet on page 0.8. Otherwise. enter..o- .. . . . . . . . . . .. . 14. , 15. Entsrlhe (10..). ilany, from Sch D, line 7b. If Sch D, line 7b, io .e", ora gain, enl<>r-ll- 15.( ( 16. enktf your long-tenn capitallO$s COll'ryOvers ftom Schedule D,line '4, and SOhedule K-1 . (Form 1041), line 1.0....., "..."...."....."", ...... .."........",.., ....... ..,... 1&.1 17. Combine lines 14 through 16. If the tasult Is a (loss). enter it as a positive amount. lIthe result iszeroora gain enter-o-. 17. 118. Unrccaptured $eetion 1250 gain. Subtraot linllf 17 from line 1S.lfzero or less. enter-C)... Enter the j result hate and on Schedule D.li~e 19 18. P.09 1. . 2. . 3. 4. 5. 6. S. 10. 11. 12. 13. Capital Loss Carryover Worksheet , I , ) Use this worksheet to figure yoUI' capital loss ~nyq"61"S from 2003 to 2004 if Schedule D. Line 18,15 a loss ilnd (a) that Joss is a timallcr IOl!iiS tharl rhe \ loSS on SChedule 0, line 17a, or (b) Fonn 1040, line 36 is a toss. Otherwise, you do not have any canyovers. i 1. Enter the amount from Form 1040. line as. If a loss, enclose the amount in parentheses Z. Ent6rlholos.from Sohedule 0, Iino18, as .poslliveomount ..,............, ...........",.. ,,' 3. COD1bineline~ 1 atld'2..lf2:eroorless, en.er-o-.,....... ....:~:~:::.... ..... q. .... ....... -.... ..... ....... ........... .............,..................................... 4. EntlJr the smaller of line 2 Qr line S ................,................................,........__.......-...... . If line 7b of Schedule 0 is iI loSS, go to line S; otherwih, enter ~O- on line 5 and go to line 9. . - . . . . . 5. enter the loss from Schedule C, line 7b. as: a positive amount 6. Enlflrlh.gain. if any, from ScheduleD, line 16 "'"'''' .... .......,.........., 6"'" ".......... .......... 7. Add lines 4 and 6 .. . .. ......... ., .. . . .. ..... . . .. .. .. . ....... ,..............................................,........................ .... ..... s.. Short..bmn capital loss canyoverto2004. Su'atract1ine 7 frotl'lline S.lfzeroorress, en\er-o- .. ~ ~:::....:.....:::::::: ~~ If line 16 of S~hedule 0 is a loss, go to fine 9: otherwise, skip Iinl;$ 9 through 13. 9. EntQr thE! loss from Schedule 0, rifle 16, as a positive amount 10. enter the geain, WallY. fromSchedl.lfe D,lina 7b ............ ....... ........... .10...... ......... ..... .... ! 11. Subvact line 5 from line 4. Ifzsro or Jess. enter:O-._............... ........... ......... .... 11: ) 12. Addlines,oand11 ........................................ J 13. Long..tenn capitall~~.~~~~~~;t~.io04: S~~d'Ii~~ i2'fm'm'li~~ !i. '1;%~~.o~i~~~:~~~~O~""""".""""""'" i ..,.....,.................. 3,000 1. :t 3. 4. 27,426 3,000 30,426 3,000 5. 7. 8. s. 4,723 1:t 3,000 13. 1,723 10M '~.~... ~ 1-- ~ ""~ _. "~ JUN-23-2004 14:47 I' Form 1040 . Name I Sale of Home Worksheets Nan Amis P.10 . 10 figure YQur adjusted basis. you may use Worksheet 1. Adju~ed Basis of Home Sold located in IRS Pub. 523. Please refer to that publication's Chapter 2 for <lelllils. . If the sale requires the businessJrancal portion be report$d on Form 4797. only the sale of the home portion is repOrted on this worksheet. If yt:lU qualify to exclude any of the gain on the business or rental part, also d!vfde your maximum exclusion between that pert of the property and the part used as the home. Please see IR.S Pub. 523 for details. Exclusion and Tax ble Gain 1419 Holl Pike Carlisle Mal'~ if you h...y~ chOM'n nottotako theCKcI\l$ion andare.le.coting to ~ tax on the. entire gain .................................,..,........ Part 1-Gain (or Loss) on Sale 1. Selling price of home. . . . ... . . , . . ,. . . ...... .. . . . , . . . . . , .. . .. .. .... . . . ... ... . . .. ....... .. . ...... . .. . . .... . ... 2. Sellifl9 expenses ....... ....... ............ ....... .......... ...................... ....... ............ ... .... 3. Sublraclline 2 from lina 1 .......,........................................................................... 4. Adjusted basis of home sold ...... ........... ......... ........... ............. .... ... ........ .......... ...... 5. Subtract line 4 frorn line 3. This is the gain (ot loss) on the sale. If thi$ i$ a less. stop here ........................ Part 2.ex.clusion and Taxable Gain 6. Enter any <leprecialiOll clalma<l on the property for periodS after May 6. 1997. If none enler zero. . . . . . . . . . . . . . . . . . . . 7. Sublractline 6 from line 5. (lfthere5ultis Ie$$ than zero, enteruro) ........,....... ............ n... ....,...... 8. If you quarlfy 10 exclude gain on the sale. enter your maximum exclusion. (See IRS Publioatio/\ 523) If you do not qUlIfffy to exclude gain,enler-Q-. . ....... ............ ..... ...... ,......, .... ......... ......,....,. 9. el'lterthe smaller of line 7 Qrllne 8. This is your exclu$;ion. ... ,.... '" ............... ....... ....... ....... ... ... 10. Subtract line 9 from One 5. This i$ your taxable gain. R.eport it an Schedule o (Ferm 1040) ss descnbed under "Reporting the Sale" in IRS publication 523. If the amount on this line is zero, de net repott the sale 01; excluSion. on your tax return If the amount on line S of this worksheet i$ mo,. than zero, complete line 11 .......,.... ................ ~ ............ .... .... ...;.......... .... ............... ..... 11. EntBrthe smaller of line 6 or One 10. Entetthls amount on line 12 ofUle Unrecaptured Seoti01"l1250 Gain worksheet in the instructions forSc:hedule o (Form 1040) . ... ..... ......... ....... ..... ... ,. ................ .... 11. 1. 2- 3. 4. S. 338,000 338,000 200 ,000 138.000 6. 7. o 138.000 e. 9. 250 .000 138,000 10. Worksheet 3 Reduced Maximum Exclusion . Caution: Comolete column 11\ onlv if vou are married and filino it loint return I rAI I IBI You Your Spouse 1. Maximum amount ................................................,............ 1. 2a. Enter the number of days that yo,", used the property as a main home during the 5-year period ending on ths dare Cf sale. (If mlilmsd flUng Jointly, fill in COluMns (A) and (8)) ................................................................... 20. : b. Enter the number of <lays thai you owno<llhe property durtnglhe 5-yaar period ending on tile date of saJe. (If married filing jointly and one spouse owned the property longer than the other GpoLlse, both spouses are treated as owning the property for the longer period) ..................................... b. c. cnte! thEll $.maller of line 28 or 2b -...................................,............ c. a. .Have )'01,1 (ttr your spouse if filing jgintly) excluded gain from the sale of another home (luting the 2-year periocl et'Iding 00 the date ofttlj$ sala? No. Skip line :3 and enter the number of days from line 2c on line 4 Yes. Enter the number of days between the date of the most recent $'ale of anothar home on whic;:h you excluded gain and the deUe of sale of this home 3. 4. Enter the .srn:;iller of line 2c or 3 .......-......................................... 4. 6. Divide 1he e1mount on line 4 by 7SO.days. Enter the 1'$$1,I1t as it decimal (rounded to at least 3 places). But do not enter an amount greater than 1.000 ................ 5. S. Multiply the amount on Rne 1 by ttte decimal amount on line 6 s. ..................... 7. Add the amounts in columns (A) and (6) of line 6_ Thio is your reduced maximum exclusion. Enter It here and on WQrk$heet 2. line 8 ..................,.. 7. , , 1 '~- """j.. ~- ~~~ 'JUN-23-200.1 1.1:48 P.ll I ,j Name Form 1040 Net Earnings from Self-Employment Worksheet Taxpayer Identification Number Nan his 234-86-8038 Taxpayer Spouse f.ann profit or (loss) SchoOule F ........... ........... ...... ....... ....... .... ................ ......... Farm Partnel'5hip$ - $c:hedlJle K-1.line 15a .......................................... Auto expense from farm partne:l'$hip$....,.."..,.......................'.......... _ __ ( Dep"'clation & Section 179 from farm ""M....hlp. .. .... .... . .. .... .. .. . . . . .. . . . .... .. ( Depletion from form paMershipo ... ........ .................. ......... .............. ( Other expenses from mrrn partnerships.,. .,. ,_, ........ .... ........... ......, ....... ( Home office expen... ftlom farm partnerships ........ ......... ....................... ( UnrG'imblJl'Sed partnership expenses from f$rm partnerships ............ _..... . . . ... .,. ( Farm adjustnJent to se Income .............. ....... .... __.. ............".,.... .., Net farm profit or (loss) .. Sc=hedule se line 1 ) ( ) ( ) ( ) ( ) ( 1 ( 0 3,123 1 ( 1 ( ) ( ) ( 1 ( ) ( 1 ( 1 ) ) ) 1 ) o Nonfarm profit or (1""0) Schedule C.... ....... ,..,. ,. ..... .......... ......., ,..., ...,..,...... ........ .... Nonfarm partnerships - SChedule K..1, line 15a . ......._.... .... .......... .....,.. .... Auto expense from nonfann partnerships.".., ...........,. ... ...... ..........,.. ... ( Depreciation & section 179 from nonfarm partnarships,................. _.........".... ( OepletiOnfrom nonfarrn partnerships ..... ..... ........ ....,. ,.. ,... ..... ......., .... ( Other.xp$O$.sfrom nonfarm partnerships ..... ............ ...... ....... ............ ( Home office expens.. from nonfarm partnerships..................................... ( Ul1reimbursed partnership expenses frc!m nonfarm partnerships ......................,. ( Employ.e busine.. expenseofrom Fonn2106 ..... ..... ........ ........... .......... ( Nonfarrn$Cljusttnentto SE Income,. ....... .........."..... ............... ......... SeJf-employment income reported as other income "... ._....... ......."..." ..... ", Self-employment Income from conllllct. and straddle. .. .. . .. . . . .. . . .. .. . . .. . .. .. .. . . . . ,MinisterW89eli. ....... ....... ..... ..... ... ..........."... ......... ....... ........ Minister household allQwiiln(:S...".....................,...,.,..,.........,......... Nat nonfarm profit or (loss) . Schedulo SE line 2 ) ) ) 1 ) ) ) 3r123 o Net ptofit (loss) from self-employment ..ctivjUCls .. Schedule SE line 3 3,123 o Chureh emploY8Q income.. Schedule se line Sa [-, ~ . JUN-23-2004 14: "8 '\.J""r-vv-vu>,.lV .. ------ .-.;.........-..............- P.12 Alimony Total Description Form 1040. Dividend Income Ordinary Qualified Payer Dividends Dividends $ 638 $ 638 789 772 $ 1,421 $ 1,410 Form 1040. Line 11 -Alimonv Received Taxpayer Spouse Amount Amount $ 33,1197 $ $ 33,097 $ 0 Capital Gain Dil;lributions capital Gain Post-May 5 Payer Distribution Distribution $ 220 $ 220 $ 220 $ 220 American Funds Pershing, LLC Total American Funds Total TOTAL P.12 ''''''''''''l'Il'-r 1 -I' .~ ~ ~~~" :;r \It. "'0:.- .... LISTING CONTRACT EXCLUSIVE RIGHT TO SELL REAL PROPERTY BROKER (comp3$RY JACK GAUG~NRE~TORERA LICENSEE(S) _.__Lid _ i~ ~ SELLER --y, ~..I'...~ 1. PROPERTY LISTED PRICE $ (11f-6:; trp7J Address Municipality (city, bo ugh, ownship) County , Zoning and Present Use Identification Number (For example, tax identification number; parcel number; deed book, page, recording date) _ PURPOSE OF THIS CONTRACT Seller is hiring Broker to market Property and to find a buyer. Seller will refer all offers and inquiries to Broker. Seller allows Broker to use print and/or electronic advertising. Broker is acting as Seller \l\~ Agent, as described in the Consumer Notice. -flu-.u.. (::3 ) ~~ BROKER'S FEE No Association ofREALTORS@has set or rec mm nded the-Broker's ee. Broker and Seller have negotiated the fee that Seller will pay Broker. The Broker's Fee is of/from the sale price and paid by Seller. Seller will pay Broker a transaction fee of $1 00 at settlement. COOPERATION WITH OTHER BROKERS Licensee has explained Broker's company policies about cooperating with other brokers. Broker and Seller agree that Broker will pay from ~. ~~to another broker who procures the buyer, is a member of a Multiple Listing Service, and who: A repres~ the Seller (SUBAGENT). >0. /' 1c o No AYes If Yes, amount :;J'I.. / ' .:) 0 ofIfrom the sale price. B. represents a b, uyer (BUYER'S AGENT). A Buyer's Agent,~ven ompensated by Broker or Seller, will represent the interests of the buyer. ..n",. o No ~ If Yes, amount: c.ll I,:, 70 the sale price. C. does not represent either the Seller or,&buyer ~SACTI~CENSEE). o No t!l(Yes If Yes, amount: .:Jil. /, ,:'7" ,sale price. PAYMENTOF BROKER'S FEE A. Seller must pay Broker's Fee if Property, or any ownership in rest In it, is sold or exchanged during thete1'1l1 of this Contract by Broker, Broker's agents, Seller, or by any otber person or broker, at the listed pm or any price acceptable to Seller. B. Seller will pay Broker's Fee if negotiations that are pending at the Ending Date of this Contract result in a sale. C. Seller will pay Broker's Fee after the Ending Date of this Cantmct IF: (I) A sale occurs within~ days of the Ending Date, AND 1\'" (2) The buyer was shown or negotiated to buy the Property during the tenn of this contmct. ~r 't< Sener wilI not owe Broker's Fee if the Property is listed under an "exclusive right to sell contract" with another I.J.. _ . , broker at the time of the sale. ...-J? -rr- ....c.."., 7. BROKER'S FEE IF SALE DOES NOT OCCUR ~~ A. Seller will pay Broker's Fee if a ready, willing, and able buyer is found by Broker or by anyone, includin~ ~.J A willing buyer is one who will pay the listed price or more for the Property, or one who has submitted an offer (;rI'" accepted by Seller. B. If the Property or any part of it is taken by any govenunent for public use (Eminent Domain), Seller will pay Broker Lh/l/l.b-' ofIftom any money paid by the govenunent. ~ If a bUyer,61g gns an agreement of sale then refuses to buy the Property, or if a buyer is unable to buy it because of faUmg ... \' to do all the . gs required of the buyer in the agreement of sale, Seller will pay Broker: l~ (1) ei-gf/from buyer's deposit monies, OR (2) the Bro 's ee in Paragraph 4, whichever is less. 8. DUAL AGENCY Seller agrees that Broker may also represent the buyer(s) of the Property. Broker is a DUAL AGEN1' when representing both Seller and the buyer in the sale of a property. DESIGNATED AGENCY o Not Applicable. "Ii! Applicable. Broker may designate licensees to represent the separate, interests of the Seller and the buyer. License I" (identified above) is the Designated Agent, who will act exclusively as the Seller Agent. If Property is introduced to the buyer by a licensee in the Company who is not representing the buyer, then that licensee is authorized to work on behalf of Seller, If Licensee is also the Buyer's Agent, then Licensee is a Dual Agent. BROKER'S SERVICE TO BUYER Broker may provide services to a buyer for which Broker may accept a fee. Such services may include, but are not limited to, deed/document preparation; ordering certifications required for closing; financial services; title transfer and preparation 8elVices; ordering insurance, construction, repair, or inspection services. ,Broker will disclose to Seller if any fees are to be paid by Buyer. Any Buyer who buys through a Jack Gaughen Realtor ERA licensee, regardless of the business relationship, will pay Broker a $100 transaction fee at settlement. OTJ;lER PROPERTIES Seller agrees that Broker may list other properties for sale and that Broker may show other properties to prospective buyers. CONFLICT OF INTEREST A conflict of interest is when Broker or Licensee has a fmancial or personal interest where Broker or Licensee put Seller's interests before any other. If the Broker, or any of Broker's salespeople, has a c()nflict of interest, Broker wi . ler in a timely manner. .1- SelIer Initi Page 1 of 3 r Broker/Licensee Initial~ 13 J.. ~ ~ . :-btk~~ .Rev.~ '\~~~ ~, A/v&1. fi-e d'0' lfo 2. 3. ~. 5, 6. 9, 10. 11. 12. p' STARTING AND ENDING DATES OF LISTING CONTRACT (also called "Term") A. No Association of REAL TORS@ has set or recommended tbe tenn of this contmct. By law, the length or term of a listing contract may not exceed one year. Seller and Broker have discussed and agreed upon the length or tenn of this contract. Starting Date: This Contmct starts Wh~~y Seller .JIndJ!roker. Unl~therwiSe.2ated here: Ending Date: This Contract end on r. bJ..-t)) 0 0 ~ B. C. ~ ~~ - rw t' . 13. SETTLEMENT & POSSESSION A. Preferred Settlement Date: B. Seller will give possession of the Property to Buyer at 8ettlement or on . C. (1) If the Property, or any part of it, is rented, Seller will give any leases to Broker before signing \bis Contcact. (2) If any leases are oral, Seller will provide a written s~ of the terms, including. amount of rent, ending date, 'and Tenant's responsibilities. , (3) Seller will not enter into or renew any lease during the tenn of this Contract except as follows: 14: TITLE A. At settlement, Seller will give full rights of ownership (fee simple) to a buyer except as follows: (1) Mineral Rights Agreements (2) Other B. Seller has: )'(Yes 0 No Mortgage with Address Acct. It DYes 0 No ,Equity loan with Address Phone Acct. It Amount of balance $ o . No Seller' authorizes Broker to receive mortgage payoff andlor equity .loan ,payoff infonnation from the lender. Past Due 'faxes Judgments Type Municipal Assessments Other Amount $ C. If Seller, at any time on or since January I, 1998, has been obligated to pay support under aD order that is on record in any Pennsylvania county, list the connty and the Domestic Relations Number or Docket Number: 15~mLE LISTING SERVICE (MLS) (Complete if Broker i8 a member of an MLS) Broker will use a Multiple Listing Service to advertise the Property to other real estate salespersons, who can tell their ' clients and customers about it. Seller agrees that the MLS, the Broker, and the Licensee are not responsible for mistakes in the MLS description of.the Property. o Broker will not use a Multiple Listing Service to advertise the Property to other real estate salesperson8. 16. PUBLICATION OF SALE PRICE A. Seller is aware that new8papers may publiSh the final sale price. after settlement. .B. S'?lier'~iIl ow publishing of the sale price after Seller accepts an agreement of 8ale. o Yes No ' 17.' SIGNS & YS Seller allows (where pennitted): ~ Yes 0 No Sale Sign ~es o Yes 0 No Key in Office '-Q..>{e8 o Ye8 0 No /"'--.., 18. ITEMS INCLUDED IN THE PIPCE OF THE PROPERTY A. Included in the 8ale and purcll:"e price are all existing items 'permanently installed in the Property, free of liens, including plumbing; heating; lighting fixtures (including chandeliers and ceiling filn8); water treatment systems; pool and spa equipment; garage door openers and transmitters; television antennas; shrubbery, plantings,lII1!l unpotted trees; any remaining heating and cooking fuels stored on the Property at the time of settlement; wall to wall carpeting; window covering hardware, shades;'imd blinds; built-in air conditioners; built-in. appliances, and the range/oven, unless otherwise stated. Also included: Phone Amount ,of balance $ ~es DYes DYes o No D.Nb Amount owed $ Amount $ DYes DYes o No o No Amount $ o No Sold Sign o No Lock Box B. 0 See attached 8heet.for additioual items included in the sale. 19. ITEMS NOT INCLUDED IN THE PRICE OFTHE PROPERTY The following items are not included in the purchase 'and price of the Property: . A. tllt1-sli~r, dt~~1'" ~CL ~-fr-..hr4..~r " ." B. Items leased by the Seller C. 0 See attached sheet for additional item., not included in the sale. 20. SELLER WILL REVEAL DEFECTS & ENVIRONMENTAL HAZARDS A. Seller (including Sellers exempt from the Real Estate Seller's Disclosure Law) will di8close all known material defects andlor environmental hazard8 on a 8eparate disclosure statement. A material defect is a problem or condition that: (1) , is a pos8ible danger to those living on the Property, or (2) has a significant, adverse effect on the value of the Property. B. If Seller fails to tell of known material defects and/or envlronmentalhazards, (1) Seller will not hold Broker or Licensee. ie8poDsible in any way; (2) Seller will protect Broker and Licensee from any cluims, lawsuits, and actions that result; (3) Seller will pay all of Broker's and Licensee's costs that result. This includes attorneys' fees and court-ordered pay- ments or settlements (money Broker, or Licensee pays .to end a lawsuit or claim). 21. ,IF PROPERTY WAS BlllLTBEFORE 1978 The Residential Lead-Based Paint Hazard Reduction Act 8ays that any Seller of property built before 1978 must give the buyer an EPA pamphlet titled Protect Your Family From Lead in Your Home. The Seller also must tell the buyer and the Broker what.the Seller,knows about lead-based paint.and lead-based paint hazards,that are in or on the property being sold. Seller must tell the"buyerhow the Seller knows that lead-based paint and lead-based l?aint hazards are on the property, where the lead-based paint and lead-based paint hazards are, the condition of the painted surfaces, and any other infonnation Seller knOW8 about lead,based paint and lead-based paint hazards .on the property. Any Seller ?f a 'pre-1978 8tructure must also give .the buyer ,anY 'record8 and'reports that tl)e Seller has"ar can get about lead-based,paitit or lead-based paint hazards in or around the property being .sold, the commOli areas, or other dwellings in inulti-family housing. According to the Act, a Seller must give a buyer 10:.day~.(unless Seller'and the buyer agree to a different period of time) from the time an agreement of sal"..is signed 10 have a ''risk 'assessment" Of inspection for possible lead-based paint hazards done on the property. Buyers may choose not to have the risk asses8ment or in8pection for .lead paint hazards done. If the buyer ,chooses not ~oba, e the assessment or inspection, the buyer mU8t infunn the Seller in writing of the choice. The Actdoes not require the Sell~ insp' or lead paint hazards or to ,correct lead paint hazards 'On the property: The Act doe~ not apply to ~...~o~~~~.~~ilt' 1 8 rlat . . D~_~ ~ ~.... -n~nlmrLir...... Tnlli.I~t3 ~ " ~f;'''' J. "C . I , . ,~-. . j 22. DEPOSIT MONEY" . A. Broker"or.any person Seller and the, buyer name in the agreemelll'of sale, will keep all deposit monies paid by or for the ' ,buyer in an escrow account., If held by. Broker, ,this escrow aCCOIlDt. wm be held as required by real estate licen8ing laW8 and regulations. Seller agrees that. the person, keeping the deposil monies may wait 'to deposit any uneashed check that is . received as deposit money until Seller has accepted an'offer. B. If Seller joins Broker or licensee 'in a lawsuit for the return of deposit monies, Seller will pay Broker's and Licensee's ' attorneY8' fees and costs. . 23. RECOVERY FUND 'Pennsylvania has a Real Estate RecoveryFlind (the Fund) 10 repay any person .who has received a fin.al' court rnling (civil judgment) against.a Pennsylvania real estate licensee because of fraud; misrepresentation, or deuit in a real estate transaction. The Fund repays',per80ns who have not been able 10 collect the judgment after trying all lawful ways to do so. For complete details about the Fund, call (717) 783.3658, or (800) 822-2113 (witbin Pennsylvania) and (717)783-4854 (outside Pennsylvania). 24. TRANSFER OF THIS CONTRACT . A. Broker will notify Seller immediately in writing if-Broker transfers this Contract to another broker when: (1) Broker stops doing business, OR (2) Broker forms a Dew real estate business, OR (3) Broker join8 hi8 business with another. Seller agrees that Broker may transfer tbi8 Contract to another broker. Broker will DOtify Seller immediately in writing , when a transfer occurs. or Broker will lose the right to, transfer this Contract. Seller will follow all requirements of this ' Contract with the new broker. B. Should Seller give or transfer the Property, or an ownership interest in it, to anyone during the term of thi8 Contract, all owners wiU follow the requirements of thi8 Contract. . 25. NOTICE TO PtkSONS OFFERlNGTO SELL OR RENT HOUSING IN PENNSYLVANIA Federal and 8tale laws make it illegal for a 8eller, a broker; or anyone to use RACE, COLOR, RELIGION or RELIGIOUS ClUlED, SEX, DISAln. 'LITY (physical or, menial), FAMILIAL STATUS (children under 18 years of age), AGE (40 or older), NATIONAL ORIGIN, USE OR HANDLINGffRAINING OF SUPPORT OR GUIDE ANIMALS, or the FACT OF RELATIONSHIP OR ASSOCI' ATION TO.AN INDIVIDUAL KNOWN TO HAVE A DISABILITY as reasons for refusilJg to 8ell, show, or rent properties, loan money, or set deposit amounts, or as reasons for any decision relating to the sale of property. ' 26. NO OTHER CONTRACTS Seller will not enter into Mother listing agreement with another broker that begins before 'the Ending Date of thi8 Contract. 27. ADDITIONAL OFFERS ONCE SEILER ENTERS INTO AN AGREEMENT OF SALE, BROKER IS NOT REQUIRED ' TO. PRESENT OTHER OFFERS. 28. ' ENTIRE CONTRACT This Contract is the entire agreement between Broker and Seller. Any verbal or written agreements, that were made before are not a part of this Contract. 29. CHANGES to THIS CONTRACT All changes to this contract must he in writing and signed by Broker and Seller. '30. SPECIAL INSTRUCTIONS The Office of the Attorney General bas not pre-approved any special C0ndition8 or liddiuonal terms added by any parties. Any special conditions or additional terms in the Contract must comply with the Pennsylvania Plain Language Consumer Contract Act. ADDITIONAL INFORMATION (OPTIONAL) 31., TAXES, UTILITIES, & ASSOCIATION FEES A. At settlement, Seller will pay one-half of the total Real Estate Transfer Taxes, unless otherwise stated here: B. Real Estate Property Tax Assessment $ Wage/Income Tax c., Estimated Utilities (trash, water, se.wer, electric, gas, oil, etc.) Yearly Taxes '$ PerCapitaTax $ D. Association Fees $ Include: E. Other 32. BUYER FINANCING Seller will accept the following arrang~ments for buyer to pay for the Property: , ~~r will apply for a mortgage. 'IYPe(s~ of mortgages accept~e to Seller are: ~es 0 No Conventional 0 Yes "1sI6l0 FHA , 0 Yes ~o VA 0 Yes TINa IV" ~eller's help to buyer (if any): ~ ffY\Y ' , ..seller has, read, the Consumer Notice as adopted,by the Stilte Real Estate, Commission at 49 Pa. Code f35.336. , An Sellers mnst sign this ContracL" . SELL:g1.l' Name (pnnt)' MailingAddress ,;_... VV\.cw..lo......"O t:>-..,.., Phone #s ') I'> :J 4 I '-ll.... D fAX # ELLER IS'ADVISEDTOCONSULT AN ATIORNEY. DATE ,t:)-;l,~ -O~ SS# :l. ~ I(' lI"L "a..... <:...0......\.....,..... ~ '''''\'3-,,~11.. . E-Mail N......~.:~ <Q vc.... ",-..:b SIGNING: IF S DATE SS# , SELLER Name (print) , Mailing Addres,s Phone #s , BROKER (Compan ACCEPTED BY Mailing Addres Phone #8 . . ,i" o IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NANCY A. REED, PLAINTIFF VS NO. 2000-2123 MICHAEL D. REED, DEFENDANT DEPOSITION OF: ROBERT STOUT TAKEN BY: DEFENDANT BEFORE: ANTHONY J. BALSHY, REPORTER NOTARY PUBLIC 0........... '., DATE: NOVEMBER 17, 2004, 12:35 P.M. PLACE: JAMES, SMITH, DIETTERICK & CONNELLY 134 SIPE AVENUE HUMMELSTOWN, PENNSYLVANIA APPEARANCES: SAMUEL L. ANDES, ESQUIRE FOR - PLAINTIFF JAMES, SMITH, DIETTERICK & CONNELLY, LLP BY: JOHN J. CONNELLY, JR., ESQUIRE FOR - DEFENDANT c Geiger & Loria Reporting Service - 800-222-4577 L_ ' , , ~~^~,~I....~-" () ,,-, ;':,::::.J 0 ,- 0::=; '.,,-;- e_" " I",' ,.." .-j r,,' rn I CO Hi . -,-,,1 r ::-c) (') :J() :? !:~~~! C) , ,--,r N :b CD j""\.,) -< ~~""~ ....- ~. J _' -_...~i",:" , 2 0 1 2 3 FOR DEFENDANT Robert Stout 4 5 6 7 8 9 TABLE OF CONTENTS WITNESS DIRECT 3 EXHIBITS PRODUCED 10 DEFENDANT'S EXHIBIT NO. c 11 No.2: Contract AND MARKED 7 8 No.1: Settlement sheet 12 13 14 15 16 17 18 19 20 21 22 23 c'....'. ., 24 25 Geiger & Loria Reporting Service - 800-222-4577 0 1 2 3 4 5 6 7 8 9 10 11 12 0 13 14 15 16 17 18 19 20 21 22 23 C 24 25 L '. _~I_.""oo..'" 3 ROBERT STOUT, called as a witness, being sworn, testified as follows: DIRECT EXAMINATION BY MR. CONNELLY: Q Mr. Stout, we're here today to ask you a few questions about the purchase of the property located at 100 Mooreland Avenue in Carlisle. Do you understand the purpose of today's proceeding? A I do. Q Other than speaking to me on the telephone and speaking to your wife, have you spoken to anyone else about your testimony here today? A No. Q And you received a subpoena to bring records along regarding the purchase of that property, is that correct? A I did. Q And you have those with you? A I have everything I could find. Q Let me first ask you when you entered into the contract to purchase this property, what date? A May 24, 2003. Geiger & Loria Reporting Service. 800-222-4577 ~ 0 1 2 3 4 5 6 7 8 9 10 11 12 0 13 14 15 16 17 18 19 20 21 22 23 0 24 25 ~ ~ ~'~i 4 And do you have a copy of that contract Q with you? A I do. That's just the front page. Q Do you have all of the pages? A Yes, I think. Q Can you give me a little history on your looking at properties in this general area, the Old Mooreland neighborhood or anywhere around there? When did you begin looking for a house in that area? A We purchased the house in May of 2003. We probably got serious about looking for homes in early 2002, 12, 14, 16 months before we actually purchased the home. Our initial scope was not just Old Mooreland. We were looking New Mooreland, Old Mooreland. We even looked at places in Camp Hill. Q What was the price range within which you were looking as far as purchase price is concerned? A We started out low and moved higher. We started out wanting something 200 to 250 range, and as we got a dose of reality and low mortgage rates and high costs, the top end of that moved up to about 350. Q When did you first discuss properties with Mary Fitts? When did she first become involved Geiger & Loria Reporting Service. 800-222-4577 I . 0 1 2 3 4 5 6 7 8 9 10 11 12 0 13 ',. :,.-' 14 15 16 17 18 19 20 21 22 23 24 0 ~:'. >- 25 '-...- l-,._~ . 5 with you in showing you real estate? A l'd be hard pressed to give an exact date, but I would say probably eight to 10 months before we purchased the Mooreland property. Q And was she showing you properties in these areas? A She showed us several properties in that area. That's why we came upon her because she listed several properties in the area. Q Do you recall the price range of the properties you had seen in the area within six to eight months of when you purchased the 100 Mooreland property? A I'd say they were anywhere from Yes. 200 to $375,000. Q And Mary was involved in showing you those properties? A In some, but not all. Q At what point did you receive any indication that this property may come on the market? Do you recall? A Well, it was in that period. Like I said, eight to 10 months before we purchased it that she thought this one would be coming on. When we looked at a house with her and we told her we were Geiger & Loria Reporting Service. 800-222-4577 ,~- o o 0.. f: c, ~" ~'. -'''\ 6 1 interested in the area, she said she thought this 2 would be coming on the market at some point. 3 Q And this would be eight to 10 months 4 prior to purchase? 5 A That's the best I can do. 6 Q But it wasn't a week or two; it was 7 months? 8 A No. It was months. 9 Q During the period when you first 10 started working with Mary up until when you purchased 11 it, was there ever a discussion as to the sale price 12 of this home, even in a ballpark? 13 A Boy, there may have been a ballpark, 14 but I don't recall a number. 15 Q Would it be fair to say that it was in 16 excess of 300 rangewise or don't you recall? 17 I don't recall. I really don't. A 18 Q Now, at what point did you first look 19 at this home that was the subject of the contract? 20 A Maybe a day or two before that date. 21 Q Day or two before the date? 22 I looked at it A Before May 24, 2003. 23 I think we had a contract two or three days one day. 24 It was a very short later maybe. I don't know. 25 period of time. Geiger & Loria Reporting Service - 800-222-4577 '0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 o 15 c "'" ".L......"'''''.di...,, 16 7 Q And when did Mary Fitts contact you and tell you that this property was on the market? A Was on the market? Probably the day before or the day that we went to see it. I'd say from the time she told us it was on the market to the time we had a contract was clearly less than a week. Probably more like four days. Q The sale price was 338,000, is that correct? A I don't know if we went back and forth at all or not. 345 sticks in my head, but 338 is what it is. Q And do you remember whether a higher price was negotiated down? A That's what I thought. 345 stuck in my head, that we countered at 338, but it may have been 338 and we just said, yes, we were ready to buy at that point in time. Q In addition to your agreement for the sale of the real estate, you also have your settlement sheet with you, is that correct? A I do. (Settlement sheet marked as Defendant's Exhibit No.1.) BY MR. CONNELLY: Geiger & Loria Reporting Service - 800-222-4577 17 18 19 20 21 22 23 24 25 o o 0.,.' , ' l~ ~""""',~j""","~', 8 1 Q I'm showing you a document marked 2 Defendant's Exhibit 1. Is that a copy of the 3 settlement sheet from your closing on the property? 4 A It is. 5 (Contract marked as Defendant's Exhibit 6 NO.2. ) 7 BY MR. CONNELLY: 8 Q Mr. Stout, I'm showing you a document 9 marked Defendant's Exhibit 2. Can you identify what 10 that document is? 11 Yes. It's the contract to buy the A 12 house. 13 Q And I did notice on the contract that 14 it is signed and dated. Excuse me. Can you pullout 15 your original? I'm having trouble reading the copy. 16 A What do you want? 17 Q On the last page, the signature page, 18 the acceptance, can you read a date on there? 19 The 15th of August I think MR. ANDES: 20 8/15/02. it is 2003. It's on my copy. 21 We're on different documents. This 22 A says 5/24/03. 23 BY MR. CONNELLY: 24 And I note on the bottom of each page Q 25 from start all the way through they weren't initialed Geiger & Loria Reporting Service - 800-222-4577 0 1 2 3 4 5 6 7 8 9 10 11 12 0 13 14 15 16 17 18 19 20 21 22 23 24 C " 25 -. J' .~ J~~j 9 at the bottom. Do you recall why? A I don't. MR. CONNELLY: All right. I don't have any other questions. (The deposition was concluded at 12:50 P.M. ) Geiger & Loria Reporting Service - 800-222-4577 c o 50 ._ - - I t'fiL 10 1 COUNTY OF LEBANON ss. 2 COMMONWEALTH OF PENNSYLVANIA 3 4 I, Anthony J. Balshy, Reporter-Notary 5 Public, authorized to administer oaths within and for 6 the Commonwealth of Pennsylvania and take depositions 7 in the trial of causes, do hereby certify that the foregoing is the testimony of Robert Stout. 8 9 I further certify that before the 10 taking of said deposition, the witness was duly 11 sworn; that the questions and answers were taken down 12 stenographically by the said Anthony J. BalshY, a 13 Reporter-Notary Public, approved and agreed to, and 14 afterwards reduced to typewriting under the direction 15 of the said Reporter. 16 I further certify that the proceedings 17 and evidence are contained fully and accurately in 18 the notes taken by me on the within deposition, and 19 that this copy is a correct transcript of the same. 20 In I have hereunto 22 21 subscribed my hand this 23 NOTARIAL SEAl. ANTHONY J BAlSHY Notary Public PAI.M'IIlA BOROUGH, LEBANON COUNIY My Comm~ ExpIres Ocl9, 2007 24 25 _'_lIllbrdl;a.~_""'IW~I__J!I;~InJ~lMUjmm;~!!,W.~ej~illiIi.li:~~ ~- 'M:!~UI.r,WI1.\/IilQI~ II .~... ..,. "~ c .I "', ~~~' fr~ "...",...." ~ '..'",-, ",+':I)I'Y' :, "':.' _i",-: ~ i 1 ,.". """-''''~'''''''''''' ,--"".",., " ,;:,. o o o ~ .~~ - L....J 1Ii!iiltl~: . -- . settlement Statement Type of Loan 1.0FHA 4. OVA U.S. Department of Housing and Urban Devetopment ~ ,r OMB No. 2502.0265 Loan Number 03-6220-064900908- 1 MOTE: Thi5 form is fu~~ishe~ to give ~ou a s.tatement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked p.o.c were paid outside of c1osmg; they are shown here for informational purposes and are not included in the totals. NAME AND ADDRESS OF BORROWER:Robelt L. Stout Cynthia D. Stout 858 Alexander Sprlng Road, Carl/s/e, PA 17013 858 Alexanrler Spring Road, Calflsle, PA 17013 2. 0 FmHA 5. 0 Conv. Ins. 3. IZI Conv. Unins File Number P133-293/S/;ou/; Mortgage Insurance Case Number NAME AND ADDRESS OF SELLER: Nancy A. Reed elk/a Nancy Am/s 100 Moore/and Avenue, Carlisle, PA 17013 NAME AND ADDRESS OF LENDER: wasnlngton Mutual Banlr, FA ,PA PROPERTY LOCATION: 100 MOGle/and Avenue Carlisle, PA 17013 SETTLEMENT AGENT: PLACE OF SETTLEMENT: TIN: O'Srlen, Sarlc & Schalllr 17 West South Stlllet, Carlisle, PA 17013 25-1708515 iETTLEMENT DATE: 08/15/2003 RESCISSION DATE: SUl\IIl\IIlliliy,iOfBOliliOWEli's :rRANSACTION K. SUMMARY OF SELLER'S TRANSACTION ). GROSS AMqUNT pUE FROM BORROWER: 400. GROSS AMOUNT DUE TO SELLER: . ._tract Sales Price "338 onn 00 401. Contract Sales Price 6338 000.00 . 'Personal Property 402. Personal property . Settlements charges to borrower: 403. from line 1400) $10,447.14 404. 405. ,DJUSTMENTS FOR ITEMS PAID BY SELLER IN ADVANCE: ADJUSTMENTS FOR ITEMS PAID BY SELLER IN ADVANCE: _ ~. Cilyltown taxes to 406. Cityltown Taxes to 7. County Taxes 08/15/2003 to 01/01/2004 $418.60 407. County Taxes 08/15/2003 to 01/01/2004 $418.60 8. Assessments to 406. Assessments to 9. 409. O. 410. ,. 411. 2. 412. ). GROSS AMOUNT DUE FROM BORROWER: , $348,865.74 $338,418.60 420. GROSS AMOUNT DUE TO SELLER: ). AMOUNTS PAID BY OR IN BEHALF OF BORROWER: 500. REDUCTIONS IN AMOUNT DUE TO SELLER: . Deposit or earnest money $5,000.00 501. Excess deposit (see Instructions) . Principal amount of new 100n(s) $270,400.00 502. SetUemeot charges 10 seller (line 1400) $11,999.40 . E~~stingJoan(s) tElken subject to 503. Existing 10ao(s) taken subject to 504. Payoff of first mortgage loao Bank of America $162,653.88 . 505. Pa'loff of s.econd maTlgage loan Deposit w/ Lender $295.00 506. 507. 506, 509. ADJUSTMENTS FOR ITEMS UNPAID BY SELLER: ADJUSTMENTS FOR ITEMS UNPAID BY SELLER: !10. City/town taxes to 510. City/town taxes to !11. County taxes to 511. County taxes to H2. Assessments 07/01/2003 to 08/15/2003 $322.46 512. Assessments 07/01/2003 to 08/15/2003 $322.46 ~13. 513. !14. 514. !15. 515. ~16. 516. ~11. 517. !18. 518, !19. 519. ). TOTAL PAID BY/FOR $276,017.46 520. TOTAL REDUCTIONS $174,975.74 BORROWER: IN AMOUNT DUE TO SELLER: J. CASH AT SETTLEMENT FROMITO BORROWER: 600. CASH AT SETTLEMENT TO/FROM SELLER I. Grass amount due from borrower (line 120) $348,865.74 601. Gross amount due to seller (line 420) $338,418.60 !. Less amount paid bylfor borrower (line 220) $276,017.46 602. Less reductions in am!. due seller (line 520) $174,975.74 I. CASH ( ooFROM) ( OrO) BORROWER: $72,848.28 603. CASH ( o FROM) ( 00 TO) SElLER: $163,442.86 HUD-1 (3-86) . RESPA, HB 4305.2 PAGE 1 ~ ~ .~~~"~ ~~.~~~ .. . 1.,_ L.~.l ~ .... 'io'" ).1 (Rsv.3J86} OM.B No. 2502.0265 SETTLEMENT CHARGES 1 TOTAL SALES/BROKER'S COMMISSION BASED ON PRICE $338,000.00 @ 2.5 %. $8,450.00 PAID FROM BORROWER'S FUNDS AT SETTLEMENT PAID FROM SEllER'S FUNDS AT SETTLEMENT DIVISION OF COMMISSION (LINE 700) AS FOLLOWS: $8,450.00 , Commission paid alllelllement Transaotion Fee 10 10 ERA-NRT, Ino. $100.00 $8,450.00 $100.00 , loan origltlaUon fee . loan discounl % % Washington Mutua~ Bank, FA $325.00 Bank, FA $330.00 $50.00 $31.00 $13.0,0, . Interest from 08/1.5/2,003 to . Mortgage insurance premiUm lor . Hazard ins.urance premium :for . Flood Insurance premium for 08/31/2003 .@ $34. 261day $582.42 mos. 10 yrs.lo yrs.lo 1. Hazard Insurance 2. Mortgage insurance 3. City property laxes 4. Cmm\.y property \8".(0$ 5. Annual assessments 6. Flood insuranc8 1. School taxes ., 9. A re ate AC,countin 2.00monlhs@ months@ monlhs@ 6. DO mon\hS@ monlhs@ monlhs@ 2.00months@ months@ Escrow Ad.ustment $44. 33 per monlh per month per month $90. 93P8'mon\h per month per month $213.10 per month permonlh $88.66" $545.58' $426.20 ($363.68) 1. Settlemenl or dosing fee to 2. Abslract or tille search to 3. Tille examinaUon 10 4. Tille insurance binder to 5. Document prepara\lon \0 6. NOlary fees to Cash 7. Allorney'sfees 10 (includes above nemS Numbers: B. Tille Jnsurancelo O'Brien, Baric & Soherer (includes above items Numbers: 1101-1105 1107-111.1. 9. lender's coverage O.Owner'scoverage $2,048.75 tEnds #100-$50 #300-$50 #900-$50 2. Insured C1osin~ Ltr. 3, $6.00 $270,400.00 I $338,000.00 I -- - - - - - - ~ $35.00 1. Recording (ees: 2. Cily/county lax/stamps: 3. Stele taxfslamps: 4, 5, $38.50 ;Mortgage $68.50 Deed $3,380.00; Mortgage Deed $3,380.00; Mortgage ; Releases $107.00 $3,380.00 $3,380.00 1. Survey to 2. Pest inspection to 3. 0 'Brien, Baric & Scherer (Overnight Fee) 4. Dar~ene Moyer, Tax Col~ector ('03 sohool bi~~ at diso) 5. Car~is~e Borough Water De t. (water/s,ewer act#0431SAJ 6. Wire Transfer Fee to liashin ton MUtual Bank, FA 7, $10.00 $2,557.21 $59.40 $35.00 DO. TOTAL SETTLEMENT CHARGES $10,447.14 $11,999.40 lve carefuUy reviewed the HUO-t Settlement Statement and to the best of my knowledge and belief, it {s a true and accurate statement of aU receipts. and disburs.ements. made myaC7 in this transaction. I further certify that I have received e copy of the HUD.1 SetUement Statement. { TOwer: () / (/ 0) S.n.r or Date: <1 .... ..) '" Agent Nancy A. Reed a/Wa ancy Amis D.t.: 'trl(-()'J~:~-;;(}H / ~' ~ ,~,. -_..~'"-........-~-_..,,- '-~~~ ,lhi..lat.m.nl. ~ Date: SeUlement Age David A. Baric ~RNING: It is a crime to knowingly make false statements 10 the United States on this or any other similar form. Penalties upon conviction can indude a fine and impris.on- nt. For details see: Title t8 U.S. Code Section 1001 and Section 1010. Dale: t ---lr;--jl rower: Date: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 '1 42 43 44 45 46 47 48 49 50 51 52 53 ", ..~ . - ,~~.... L......~ ~ STANDARD AGREEMENT FOR THE SALE OF REAL ESTATE This form recommended and approved for. but not restricted to use by, the members of the Pennsylvania Association of REALTORS@ (PAR). A1S-2K ?~~LL,~R'S J,Jll~INES~,RELAT~ONSHIP~ITH PA PC;E~~ED BROKER BROKER(COmpaJlY)"';'~~f1"{;< /"';'11('~~C\'i 1\ ~';':;! t.", i' A ,<I PHONE' 4 ADDRESS v'(oJ'''''' J ", ,,>1;, ,,,..'. ' .; l'~~~' ''Y';< fir) ,,'"~,"r.<'_-f;i{L'~",..,4!/"',':r'{, ~;.t.,j".,.:.__i.,__ ~ ,ri',- t-",<ll~ FAX ",'-f BROKER IS THE AGENT FOR SELLER. rlesig~ate.t Agentis) for Seller, if applicable: ' OR '..' Broker is NOT the Agent for Seller and is alan: 0 AGENT FOR BUYER 0 TRANSACTION LICENSEE ,," ." ',. ':: ( ~-,' ...,~ / J,JUYER'S BUSINESS REIeATIONSHij' WITH.J;'A LICENSED BROKER >,'''( - ./c .- .".,~,..A7,,' ".-;,>-<.",,_"-' '-, t'-, ':"/1>), _ ',- F ,_' r /. it PHONE FAX BROKER (Company) ADDRESS BROKER IS THE AGENT FOR BUYER, Designated Agent(s) for Buyer, if applicab]e: OR , Broker is NOT the Agent for Buyer and is alan: ~ENT FOR SELLER 0 SUBAGENT FOR SELLER o TRANSACTION LICENSEE When the same Broker is Agent for Seller and Agent for Buyer, Broker is a Dual Agent. All of Broker's licensees are also Dual Agents UNLESS there are separate Designated Agents for Buyer and Seller. If the same Licensee is designated for Seller and Buyer, the Licensee is a Dual Agent. 'cf- 1. ijl;big ~llr~ewent, SELLER(S): ..{ ',r .' "iiI~- dated , is between " ( ,-';,' y; ~, li'-', ,/ >) , l.~ , i_'{ ~: i i: , ~ , 5 & 7 ,,~~ , ,';:::~ , called "Seller," and BUYER(S): ,/L.. .,.t,'.", .":,,.<'_( -\..'~<_. ";,, r' ,..1, >t~. "r" -:';~> :;;:j'" ;::;' ~,,- ;1 -c l ,..,...... t i ,~ ~ '" ,j.-, 1:"__. <, '. -~~~,,-!.... ", 1" J""} , .i ~/ < ?i 2. PROPERTY (1-98) Seller hereby agrees to sell and convey to Buyer, who hereby agrees 10 purchase: ALL THAT CERTAIN lot or piece of ground with buildings and improvements thereon erected, if any, known as: ! " -" /"" r c' :/ (;1. in the "1.-~:,C\, K ",(" of /i,,_ County of -1' j " ;..' ,',' "t_ in the Commonwealth of Pennsylvania, Zip Code Identification (e.g., Tax ID #; Parcel #; Lot, Block; Deed Book, Page, Recording Date) 'Jt~''":~" ~'--' ,'-:; ,;; "j' i. ~, 1 r , called "Buyer." ,,;",,"'" 8 9 10 11 12 13 l' 15 :_.....- 16 17 lB 19 20 21 " " 24 25 26 3. TERMS (1-02) (A) Purchase Price JCl L; -:".ti..';-Y\>;! /! of __f~ , i "f'--' , ,-,;" 1,,(,', " ~ i .,'... H " 0'1, U.S. Dollars which will be paid to Seller by Buyer as follows: 1. Cash or check at signing this Agreement: 2. Cash or check within _ days of the execution of this Agreement: 3. 4. Cash, cashier's or certified check at time of settlement: $ $ $ $ TOTAL $ (B) Deposits paid on account of purchase price to be held by Broker for Seller, unless otherwise stated here: ~-'. (C) (D) (E) Seller's written approval tj) be on or before:" .I.~ ;" /;!' -" . ) . Settlement to be on -i A ! I, ,i.,~"_lr ; ~,': , .~ ,;" /' ,'" ''''j , , " Conveyance from Seller will be by fee simple deed of special warranty unless otherwise stated here: 27 28 29 30 31 S2 33 34 35 36 37 38 39 40 41 42 43 44 45 46 '7 48 49 50 51 52 53 54 55 56 57 58 59 , or before if Buyer and Seller agree. (F) Payment of transfer taxes will be divided equally between Buyer and Seller unless otherwise stated here: (G) At time of settlement, the following will be adjusted pro-rata on a daily basis between Buyer and SeHer, reimbursing where applicable: taxeS (see Information Regarding Tax Proration); rents; interest on mortgage assumptions; condominium fees and homeowner association fees, if any; water and/or sewer fees, if any, together with any other lienable municipal service. The charges are to be pro-rated for the period(s) covered: Seller will pay up to and induding the date of settlement; Buyer will pay for all days following settlement, unless oth~fWise stated here: 4. FIXTURES & PERSONAL PROPERTY (1-00) (A) INCLUDED in this sale and purchase price are all existing items permanently installed in tpe Property, free of liens, including plumbing; heating; lighting fixtures (including chandeliers and ceiling fans); water treatment systems; pool and spa equipment; garage door openers and transmitters; television antennas; shrubbery, plantings and unpotted trees; any remaining heating and cooking fuels stored on the Property at the time of settlement; wall to wall carpeting; window covering hardware, shades and blinds; built-in air conditioners; built-in appliances; and the range/oven unless otherwise stated, Also included: (B) LEASED items (not owned by Seller): ,j ^ ,..,\"",,c 54 (C) EXCLUDED fixtures and items: ~ 1.. t \~.- 5. DATESrrlME IS OF THE ESSENCE (1-02) (A) The said date for settlement and all other elates and times referred to for the performance of any of the obligations of this Agreement are agreed to be of the essence of this Agreement and are binding. (B) For the purposes of this Agreement, number of days will be counted from the date of execution, by excluding the day this Agreement waS executed and including the last day of the time period. (C) The date of settlement is not extended by any other provision of this Agreement and may only be extended by mutual written agreement of the parties. (D) Certain time periods are pre-printed in thi~ Agreement as a convenience to the Buyer and Seller. Any pre-printed time periods are negotiable and may be changed by striking out the pre-printed text and inserting a different time period acceptable to all parties. 55 56 57 58 59 IS.2K Page I of 8 Seller Initials: COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS@200:! 01/02 Buyer Initials: rn Pennsylvania Asso U3 REALTORS'" REALTOR@ Th~VOIC8f<IIRe<lIEstate~InPen"ifVaIIIB jiij;1:Ii1lli!j >-,~" .l_ For purposes of prorating real estate taxes, the "periods covered" by the tax bills the Philadelphia, Pittsburgh, and Scranton school districts, the t b' for t covered by the tax bill is July 1 to June 30. Illti1iiiiiMttttiBI: il'~~b'\"b',",i';;O,-,j-"'k"""'''''''~~.ll!I.''''"",31i!ll_iIIlId_ ..-,," .'--jij ~ -, ~" - , \ tI --'-I II ! l'<jonCES AND INI<'ORMATlON .catio ry to a Buyer, said provis!on shall be satisfied by communica- such proVisions may be satisfied only by communication/delivery being made con on that requires or allows communication/delivery to a Seller, said provision shall be Satisfied by communica- for Seller, if any. If there is no Broker for Seller, all such provisions may be satisfied only by communication/delivery being made ess oth.erwise agreed to by the parties, -, ~^._~~- -~ ~_~,I -~. ~o 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 B1 82 83 84 85 60 87 " 69 90 91 92 '3 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 116 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 136 139 140 141 142 143 144 145 - ~ lwl..1." ,.iJk~ Ii I L;.i:J~__ h"","" ".~ · 6.. MORTGAGE CONTINGENCY (1-02) 0_ WAIVED. This sale is NOT contingent on mortgage financing. 'IT) ELECTED '(A) "This sale is contingent upon Buyer o~taining mortgage financing as follows: 1. Amount of mortgage loan $ - 2. Minimum Term years 3. Type ofmortg~_ge _ ,,!.. ,k.., 4. Interest rate 'Yo; however, Buyer agrees to accept the interest rate as may be committed by the mortgage lender, not to exceed a maximum interest rate of () l}"o. 5. Discount points, loan origination, loan placement and other fees charged by the lender as a percentage of the mortgage loan (excluding any mortgage insurance premiums or VA funding fee) not to exceed 'Yo (O'Yo if not specified) of the mortgage loan. The interest rate and fees provisions required by Buyer are satisfied if a mortgage lender makes available to Buyer the right to guarantee an i~!erest rate at or below the Maximum Interest ~ate specified herein with the percentage-f~ _ at or 'below the amount specified herein. B~y~r gives Seller th~, right,. at Seller's sole option and as permitted by the, mortgage lender and applicable laws, to contribute financially, without promise of reimhl!rse:rh~nt, to the Buyer and/or the mortgage lender to make the above teons available to Buyer. (B) Within _ DAYS (10 days if not specified) of the execution of this Agreement, Buyer will make a completed, written mortgage application far the mortgag~ -<<1n:q~,sp~cified apQve to_a responsible mortgage lender. The Broker for Buyer, if any, otherwise the Broker for Seller, is authoriZe:d to comnllll~ictlte with ~(lIl~rtgage le~d~r f~r the D\U1loses qf assisting in,the mortgage Joan process. (C) 1. Mo~ge co~tment ~te:- "~~-~'"",l;,_ , .' ,'~: . '/-'1"_'... __ ') . If a written commitment is nat received by Seller by the above date, Buyer and ~ellll~n~ to eJ<lead'!lte'~OxI!lllgecommltinentdate until Sener terminates this Agreement in writing by notice to Buyer. 2. Upon reCeipt of a mortgage cotrirnifinent, Buyer will promptly deliver a copy af the commitment to. Seller. 3. Seller has the option_ to. terminate this Agreement in -Wtiting, after the martgage commitment date if the mortgage commitment: a. Is not valid until the cJate of settlement, OR b. Is conditioned upon the sal~, ~d. s~tq~ment of:aUY'-;(l:ther property, OR c. Contains any other condition not specified in tbis:-4~ent that-is not satisfied and/or removed in writing by the martgage lender within ~ DAYS after the mortgage eOmmlWent date,in Pnragrapb6 (C) (1). 4. If this Agreement is tenninated as specified in paragraphs 6 (e) (I).. (3); or the mOllgageloan is nol ohtained for settlemenl, all deposit monies paid on account of purchase price will be returned to Buyer. Buyer will be responsible far l!1ly'premiums for mechanics' lien insurance and/or title search, or fee for cancellation of same, if any; AND/OR any premiums for flood. insurance. mine subsidence insurance and/or fIre insur- ance with extended caverage, or cancellation fee, if any; AND/OR any appraisal fees and charges paid in advance to the mortgage lender. (D) If the martgage lender requires repairs to the Property, Buyer will, upon receipt, deliver a copy of th~.mortgage lender's requirements to Seller. Seller will, within -L DAYS of receipt of the mortgage lender's requirements; notify Buyer wlItther Seller will make the required repairs at Seller's expense. 1. If Seller chooses to make the required repairs, Buyer win accept the Property and agree to the.RELEASRset.forth in paragraph 25 of this Agreement. 2. If Seller chooses not to make the required repairs, or if Seller fails to respond within the time:giVeJI, Buyer will.- within~~ DAYS, notify Seller in writing of Buyer's choice to terminate this Agreement OR make the required repairs at Buyer's expense and with Seller's permission, which will not be unreasonably withheld. If Seller denies Buyer permission to make the required reP-~, Buyer_may, within ~ DAYS of Seller's denial, terminate this Agreement, in which case all deposit monies paid on account of purchase-'price will be returned promptly to Bnyer aDd this Agreement will be VOID. (E) Seller Assist ..'g~, NOT APPLICABLE o APPLICABLE. Seller will pay: o $ , maximum, toward Buyer's costs as permitted by the mortgage lender. o 60 61 62 63 64 65 66 67 66 69 70 71 72 73 74 75 76 77 76 79 60 " 82 83 84 65 " 67 68 89 90 91 92 " 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 126 129 130 13'1 132 133 134 135 13S 137 136 139 140 141 142 143 144 145 FRANA, IF APPLICABLE (F) It is expressly a~reed that notwithstanding any ather provisions of this contract, Buyer will not be obli~ated to camplete the_ purchase of the Property described herein' or to incur any penalty by forfeiture of earne~t money deposits or otherwise unless Buyer has been given, in accOr- dance with HUDIFHA or VA requirements, a written statement by the Federal Housing Commissioner, Veterans Administration, or a Direct Endorsement Lender setting forth the appraised value of the Property of not less than $ (the donar amount to be insertecfis the sales. priCe as stated in this. Agreement). Buyer will have the privilege and option af prOceeding with consummation of the con- tract without regard to the amount af the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Ha~sin~, ?Od 'Urban Devel?J>l11ent, ~ill insure._ HUD does ,not warrant the value nor the co~~ition of the Praperty. Buyer should satisfy himse1flherself 'that th~ p;ice' and candition of the PrOperty are ~cceptabht Warning: Section 1010 of Title 18, U.S.c., Department of Housing and Urban Development and Federal Housing Administration Transactions, provides, 'Whoever for the purpose of . . . influencing in any way the action of such Department, makes, passes, utters or pub- lishes any statement, knowing the same to be false. . . shall be fined under this title or imprisoned not more than two years, or both." (G) UJ>. Department of Honsing and Urban Development (HUD) NOTICE TO PURCHASERS: Buyer's Acknowledgement o Buyer has received the HUD Notice "For Your Protectian: Get a Home Inspection" (see Notices and Information on Property Condition Inspections). Buyer understands the importance of getting an independent home inspection and has thought about this before signing this Agreement. Buyer's Initials Date (II) Certification We the undersigned, Seller(s) and Buyer(s) party to this transaction each certify that the terms of this contract for purchase are true to the best of our knowledge and belief, and that any other agreement entered into by any of these parties in connection with this transa.c- tion is attached to this Agreement. 7. INSPECTIONS (1-02) (A) Seller agrees to permit inspections by authorized appraisers, reputable certifiers, insurer's representatives, surveyors, municipal officials and/or Buyer as may be required by the martgage lender, if any, or insuring agencies. Seller further agrees to pennit any other inspections required by or provided for in the terms of this Agreement. Buyer has the right to attend all inspections. (B) Buyer reserves the right to make a pre-settlement walk-thraugh inspection of the Property. Buyer's right to make this inspection is not waived by any other provision of this Agreement. (C) Seller will have heating and all utilities (including fuel(s)) on for the inspections. (0) All inspectors, including home inspectors, are authorized by Buyer to provide a copy of any reports to Broker for Buyer. S. PROPERTY INSPECTION CONTINGENCY (1-02) Other provisions of this Agreement may provide for inspections and/or certifications that are not waived or altered by Buyer's election here. D WAIVED, Buyer understands that Buyer has the option to. request inspections of the Property (see Property Inspection Notices and Environmental Notices). BUYER WAIVES THIS OPTION and agrees to. the RELEASE'set forth in paragraph 25 of this Agreement. ,,2" ELECTED r' (AJ" Within ~ DAYS (I5 days if not specified) af the execution of this Agreement, Buyer, at Buyer's expense, may choose to have inspec- tions and/ar certifications completed by licensed or otherwise qualified professionals (see Property Inspection Notices and Environmental Notices). This contingency does not apply to the following existing conditions andlor items: (B) Should Buyer elect to have a home inspection of the Property, as defined in the Pennsylvania Home Inspection Law, (see Information Regarding the Home Inspection Law) such home inspection shall be performed by a fun member in good standing of a national home inspection aSSoCi- ation, or by a persan supervised by a full memher of a national home inspection association, in accordance with the ethical standards and code of conduct ori practice of that assaciation. 146 Buyer Initials: A/S.2K Page 2 of S Seller Initials: 146 j~M~lit.Li"~.~"'" !Ilt~ijlf,~_IfIMd~lij -J).I'- -,-^. " '1iilI"" --""'~~ ~-~""....... .~'~...... NU nLIi. 'I U llU}' l:KS Sl:l:KINt; MUKH.::iAliE JllNANt:lNG- , . ,,[, NOTICES AND INFORMATION ON PROPERTY CONDITION INSPECTIONS II, " 'II: ::1 " II :1 The appraised value of the Property is used in determining the maximum amount of the loan 'and may be different from the purchase pnce and/or market value. " U.S. Department of Housing and Urban Development FHA Loans: For Your Protection: Get a Home Inspection What the FHA Does for Buyers. ; . and What We Don't Do What we do: FHA helps people become-horheowners by insuring'_IDortgages for lenders. This allowsJenders tOioffer; others who may not qualify for conventienalloans. Because the ,FHA insures the loan'fot'the lender; the' b-uyer -pays . 5 to first4ime buyers and ,"'doWDellayment. What we don't do: FHA does not guarantee the value or condition of your potential new home~Jf you fi cannot give or lend you money fur repairs, ,and-we cannot buy the home-back froni you. That's why it is: so important for you, the buyer, to get an independenfhOlne:inspebti()fi: Before" your potential new home and give you the-infonnation you need to make,~ wise dec' ,.' i!'inspector to inspect Appraisals and Home IIIIspections are Different As part of our job insuring the loan, we require that the lender cond for lenders; home inspections are for buyers, The lender does -an: a ' To estimate the value of a house To make sure that the house meets FHA m' To make sure that the house is market Appraisals are not borne inspections. . Why a Buyer Needs, a, Home I A home inspection gives the bu qualified inspector in- Evaluate th I n appraisal -' inform:ation, you de_ed to make a wise decision. Ih a home inspection, a your po tial new home to: onstruction, and mechanical systems placed e mi(jor $ystems; equipment, structlire; and finishes What Goes A home-inspe inspection gives conditioning, and s th r an. impartial. physical evaluation-of the overall condition of the heme and items that need to be repaired or replaced. The d report on the condition of the structural components; extenor. roofing; plumbing, electrical, heating, insulation and ventilation, air DIS. Be an Informed Buyer It is your responsibility to be an informed buyer. Be sure that what you ,buy is satisfactory in every respect. You have the right to carefully examine your potential new home with a qualified home inspector. You should arrange to have a home inspection before you purchase your home. Make sure your con- tract states that the sale of the home depends on the inspection. If you believe you ~~ave been subject to discrimimltion because"o~ 'y?~r :raf;;e, ~oi~r, religioIJ." sex, handicap, familial status, gr .n~tjonal otjg~n,_ you should caU the HUD Fair Housing and Equal Opportunity Complaint Hotline: (800)669,9777. This statement mnsf be 4elivered to yo~ at the time of initi,alloan applicapon. E,e,turn op.e ,copy to YO!lr lender as proof Of l)oiiijcati,on and,key,P one copy for your records. ~ , , You, the borrower(s), mnslbe certaiit Ihat you understand the transaction. S~ek pro,"ssional advice if you are unccrtailt. -~~...... 147 .l 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 i65 166 167 166 169 170 171 172 173 174 175 176 1"17 178 179 180 181 182 183 184 185 186 187 188 109 190 191 192 193 194 195 196 197 196 199 200 201 202 203 204 2()5 206 207 280 209 210 211 212 213 214 215 216 217 210 219 220 221 222 223 224 225 226 227 2<8 229 230 '" 232 233 234 ._~, " ~.I I.~ -~.'-I ~.-~~~ ".,.--- " " (C);i".JfBuyer is not satistied with the condition of the Property as stated in any written report, Buyer will: '')[21 Option 1. Within the time given for completing inspections: .,J 1. Acce~t the Property with the infonnation stated in the repoJ;t(s) and agree to the RELEASE set forth in paragraph 25 of this Agreement, OR 2. Temunate this Agreement in writing by notice to Seller, in which case all deposit monies paid on account of purchase price will be returned promptly to Buyer aud this Agreemeut will he YOID, OR 3. Enter into a mutually acceptable written agreement with Seller providing for any repairs or improvements to the Property and/or any credit to Buyer at settlement, as m3:Y be acceptable to the mortgage lender, if any. Should efforts to reach a mutually acceptable agreement fail, Buyer must choose to accept the Property or terminate this Agreement within the time given for completing inspections and according to the provisions in paragraph 8(C) (Option 1) 1 and 2. o Option 2. Within the time given for completing inspections: 1. Accept the Property with the infonnation stated in the report(s) and agree to the RELEASE set forth in paragraph 25 of this Agreement, UNLESS the total cost to correct the conditions contained in the report(s) is more than $ _ . 2. If the total cost to correct the conditions contained in the report(s) EXCEEDS the amount specified in paragraph 8(C) (Option 2) 1, Buyer will deliver the report(s) to Seller within the time given for inspection. a. Seller will, within ----1- DAYS of receiving the report(s), inform Buyer in writing of Seller's choice to: (1) Make repairs before settlement so that the remaining cost to repair conditions contained in the report(s) is less than or equal fa the amount specified in paragraph 8 (C) (Option 2) 1. (2) Credit Buyer at settlement for the difference between the estimated cost of repairing the conditions contained in the report(s) and the amount specifIed in paragraph 8 (C) (Option 2) 1. 'This option must be acceptable to the mortgage lender, if any. (3) Not make repairs and not credit Buyer at settlement for any costs to repair conditions contained in the report(s). b. If Seller chooses to make repairs or credit BQ.yer fl.t settlement as specified in paragraph 8 (e) (Option 2) 2, Buyer will accept the Property and agree to the RELEASE set forth in paragraph 25 of this Agreement. c. If Seller chooses not to make repairs and not to credit Buyer at settlement, or if Seller fails to choose any option within the time given, Buyer will, within ~ DAYS: (I) Accept the Property with the information staled in the report(s) and agree to the RELEASE set forth in- paragraph 25 of this 171 Agreemeut, OR 172 (2) Tenninate this Agreement in writing by notice to Seller, in which case all deposit monies paid on account of purchase price will 173 be returned promptly to Buyer and this Agreement will be VOID. 174 9. WOOD INFESTATION INSPECTION CONTINGENCY (1-02) 175 o WAIVED. Buyer understands that Buyer has the option to request that the Property be inspected for wood infestation by a certified Pest Control 176 ~" ~perator. BUYER WAIVES THIS OPTION and agrees to the RELEASE set forth in paragraph 25 of this Agreement. ln ca >'ELECTED ..~-- 178 ;~#(A) Within .,;l -~ DAYS (15 days if not specified) of the execution of this Agreement, Buyer, at Buyer's expense, will obtain a written "Wood- Destroying Insect Infestation Inspection Report" from a certified Pest Control Operator and will deliver it and all supporting documents and drawings provided by the Pest Control Operator to Seller. The report is to be made satisfactory to and in compliance with applicable laws, mort- gage lenders, andlor Federal Insuring and Guaranteeing Agency requi!ements, if any. The inspection will include aU readily visible and accessible areas of all structures on the Property except the following structures, which will not be.inspected: - 147 148 149 150 151 152 153 154 155 151; 157 158 159 160 161 162 163 164 165 166 167 168 169 170 179 180 181 182 ,83 184 185 188 187 16a 189 190 191 192 193 194 10. (B) If the inspection reveals evidence of active infestation(s), Seller agrees, at Seller's expense and before settlement, to treat for active infesta- tioo(s), in accordance with applicable laws. (C) If the inspection reveals damage from active infestation(s) or previous infestation(s), Buyer, at Buyer's expense, has the option to obtain a writ- ten report by a professional contractor, home inspection service, or structural engineer that is limited to structural damage to the Property caused by wood-destroying organisms and a' proposal to repair -the damage. Buyer will deliver-the structural damage report and corrective proposal to Seller within -1- DAYS of delivering the original inspection report. (D) Within -.L DAYS of receiving the structural damage report and corrective proposal, Seller will advise Buyer whether Seller will repair, 3t Seller's expense and before settlement, any structural damage from active or previous infestation(s). (E) If Seller chooses to repair structural damage revealed by the report, Buyer agrees to accept the Property as repaired and agrees to the RELEASE set forth in paragraph 25 of this Agreement. (F) If Seller chooses not to repair structural damage revealed by the report or fails to respond within the time given, Buyer, within ---.L DAYS, will notify Seller in writing of Buyer's choice to: 1. Accept the Property with the defects revealed by the inspection, without abatement of price, and agree to the RELEASE set forth in para- graph 25 of this Agreemeut, OR 2. Make the repairs before settlement, if required by the mortgage lender, if any, at Buyer's expense and with Seller's permission, which will not be unreasonably withheld, in which case Buyer accepts the Property and agrees to the RELEASE set forth in paragraph 25 of this Agreement. If Seller denies Buyer permission to make the repairs, Buyer may, within ~ DAYS of Seller's denial, tenninate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned promptly to Buyer and this Agreement will be VOID, OR 3. Terminate this Agreement, in which case all deposit monies paid on account of Pl,lfchase price will be returned promptly to Buyer and this Agreemeut will he YOID. RESIDENTIAL LEAD.BASED PAINT HAZARD REDUCTION ACT NOTICE REQUIRED FOR PROPERTIES BUILT BEFORE 1978 (1-02) o NOT APPLICABLE ,~ !:;;!('APPLlCABLE ""'(A) ~ Seller represents that Seller has no knowledge concerning the presence of lead-based paint and/or lead-based paint hazards in or about the Property, unless checked below. o Seller has knowledge of the presence of lead-based paint and/or lead-based paint hazards in or about the Property. (Provide the basis for determining that lead-based paint and/or hazards exist, the location(s), the condition of the painted surfaces, and other available infonna- tion concerning Seller's knowledge of the presence of lead-based paint and/or lead-based paint hazards.) 200 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 195 196 197 19a 199 200 201 202 203 204 205 20a 207 (B) RecordslReports: Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in or about the Property, unless checked below. o Seller has provided Buyer with all available records and reports pertaining to lead-based paint and/or lead-based paint hazards in or about the Property. (List documents) (e) Buyer's Acknowledgement: Buyer has received the pamphlet Protect Your Family.from Lead in Your Home and has read the Lead Warning Statement contained in this Agreement (see Environmental Notices). Buyer has reviewed Seller's disclosure of known lead-based paint and/or lead-based paint hazards, as identified in paragraph lO(A) and has received the records and reports pertaining to lead-based paint and/or lead- based paint hazards identified in paragraph WeB). 0.' '~'_ Buyer's Initials Date :) - ,', (D) RISK ASSESSMENTIINSPECTION: Buyer ackuowledges that before Buyer is ohligated to buy a residential dwelling huilt hefore 1978, Buyer has --..ill...- DAYS to conduct a risk assessment or inspection of the Property for the presence of lead-based paint and/or lead~based paint hazards. q( WAIVED. Buyer understands that Buyer has the right to conduct a risk assessment or inspection of the Property to determine the presence of / "'lead-based paint and/or lead-based paint hazards. BUYER WAIVES TIllS RIGHT and agrees to the RELEASE set f0l1h in paragraph 25 of this Agreement. o ELECTED 231 I. Buyer, at Buyer's expense, chooses to obtain a risk assessment and/or inspection of the Property for leaci-based paint and/or lead-based 232 paint hazards. The risk assessment and/or inspecLion will be completed within ~ DAYS of the execution of this Agreement. 233 Buyer Initials: AlS~2K Page 3 of 8 Seller Initials: 234 IiUjIJliill.iijiiiillil....i~IimIW~I!~ILBi~l.\ii~~JjjjMIiWliMlIl~;f;~""""'.""~Z:llfu,,'J:,;,~d,'.J,-.ill!JI,j:;;~llhml,1\Hil~'_.lMJI~',.,.;.,. .~ -"'.JliiI;~I~~"";;~~il ''lj;jl"'''''- rKUl'Ji.IH ): In;}t'~,Ll1Ul~ NUl1Ll!'~ , i II, : :j .! i Property Inspection: Inspections of the Property can be performed by professional Contractors Of a,home inspector, and may include inspections of: struc- tural components; roof; exterior windows and exterior doors; exterior siding, fascia, gutters, and downspouts; appliances; electrical, plumbing, heating, and cooling systems; water penetration; and any other items Buyer may select. Other inspections or certifications might include: Environmental Hazards (e.g., Mold, Indoor Air Quality, Asbestos, Underground Storage Tanks, etc,), Electromagnetic Fields, Wetlands Inspection, Flood Plain Verification, Property Boundary/Square Footage Verification, and any other items Buyer may select. Buyer is advised to investigate easements, deed and use restrictions (includ- ing any historic preservation restrictions or ordinances) that apply to the Property and to review local zoning ordinances. Flood Plains: If the Propelty is located in a flood plain, Buyer may be required to cany additional insurance. Property Boundary I Square Footage: Buyer is advised that Seller has not had the Property surveyed and that any fences, hedges, walls and other natural or constructed barriers mayor may not represent the true botindary lines of the Property. Buyer is also advised that any numerical representations of square footage of the structure(s) and/or lot size are approximations only and rriay be inaccurate. Buyer is advised to engage a professional surveyor or obtain an independent measurement of the stmcture(s) and/or lot size if Buyer wishes to make this sale contingent on Buyer's approval Of the Property's boundaries or square footage. Water Service: Buyer may elect to have the water service inspected by. a professional water testing company. In addition, on-site water service systems may have to meet certain quality and/or quantity requirements set by the municipality or the mortgage lender. Wood-Destroying Insect Infestation: Insects whose primary source of food is wood, such as termites, wood-boring beetles, carpenter ants, carpenter bees, and certain other insects, can cause damage to the wood structure of a residence. Termite and Pest Control companies are avail e inspections to determine whether wood-destroying insects are present. Because of the way these insects functiori, damage to wood may be hi selection should be made of skilled experts in the termite/pest control field to insure a proper determination of whether wood-boring in - ts is present. Applicability: In general, the Home Inspection Law a exchange, installment sales contract, lease wi NOT MORE THAN FOUR RESIDENT (exceptions 1-8) for a list of exceptions to multi-Iay- ace of a ction, and at p skills of the con- f an adequate inspection. ems who can determine the Exterior Insulation and Finish Systems (ElF'S): Exterior Insulation and Finish Systems - sometimes re ered wall systems that are applied to the exterior of some homes. Poor or improper installation of EIFS stmcture where it may cause damage to the building's frame. Leakage most frequently occurs near doors the lowermost edge of the exterior surface. Vulnerability to leakage depends on structure de . as tractor. Damage caused by water intrusion may be both extensive and expensive to repair dete Buyers purchasing homes with EIFS construction may seek to engage an inspector expe . in testing for E moisture content of the building's frame. sfers. A residential real estate transfer is defined as a sale, er transfe an interest in real property where NOT LESS THAN ONE AND volved. See Information Regarding The Real Estate Seller Disclosure Law Home Inspection: A noninva tial components of a . a1 or preparation for a be a home inspection residential dwelling su tion for, or of, one or m terns, air and water qualit the services to be performe inspector and the client. combination of the mechanical, electrical or plumbing systems or the structural and essen- aterial defects in those systems and components, and perlormed for a fee in connection with si ate transfer. The term also includes any consultation regarding the property that is represented to any confusingly similar term. The term does not include an examination of a single system or component of a ectrical or plumbing system or its roof. The term also does not include an examination that is limited to inspec- fol g: wood destroying .insects, underground tanks and wells, septic systems, swimming pools and spas, alarm sys- ourts and playground equipment, pollutants, toxic chemicals and environmental hazards.' The scope of a home inspection, the systems and conditions to be inspected or excluded from inspection may be defined by a contract between the home Home inspection report: A written report on the results of a home inspection. A home inspection report shall include: (1) A description of the scope of the inspect.ion, including without limitation an identification of the structural elements, systems and subsystems covered by the report. (2) A description of any material defects noted during the inspection, along with any recommendation that certain experts be retained to determine the extent of the defects and any corrective action that should be taken. A "material defect" that poses an unreasonable risk to people on the property shall be con- spicuously identified as such. A home inspector shall not express either orally or in writing an estimate of the cost to repair any defect found during a home inspection, except that such an estimate may be included in a home inspection report if: (I) the report identifies the source of the estimate; (2) the estimate is stated as a range of costs; and (3) the report states that the parties should consider obtaining an estimate from a contractor who performs the type of repair involved. Seller shall have the right, upon request, to receive without charge a copy of any inspeciion report from the party for whom it was pr~pareci. Home inspector: An individual who perlorms a home inspection. National home inspectors association: Any national association of home inspectors that: (1) Is operated on a not-for-profit basis and is not operated as a franchise. (2) Has members in more than ten states. (3) Requires that a person may not become a full member unless the person has performed or participated in more than 100 home inspecth;ms and has passed a recognized or accredited examination testing knowledge of the proper procedures for conducting a home inspection. (4) Requires that its members comply with a code of conduct and attend continuing professional education classes as an ongoing condition of membership. A buyer shall be entitled to rely in good faith, without independent investigation, on a written representation by a home inspector that the home inspector is a full member in good standing of a national home inspection association. Material defect: A problem with a residential real property or any portion of it that would have a significant adverse impact on the value of the property or that involves an unreasonable risk to people on the property. The fact that a structural element, system or subsystem is near, at or beyond the end of the nor- mal useful life of such a structural element, system or subsystem is not by itself a material defect. . ~- "' ~"" ,~ -- _,ow. ^ ~^ >> , 2~5 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 28!J 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 Buyer Initials: ..I~~""".""'''-' ~...~I~ '~d~"I"i'" 2. Witbin tbe time set forlb .bove for obtaininglbe, risk """"essnu!nt.and/or inspection of the Property for lead-based paint and/or Jead-b~ed paint hazards, Buy~ may deQver to Seller a written list of the specific hazardous conditions cited in the report and those corre9ti6ns requested by BuyeJ;'. ~ong with I;l copy of t.he .risk asse1isment and/or ip.spection report. 3. Seller r$.y, within ~ DAYS 'of receiving the list anq report(s), submit a writtep corrective proposal tQ Bpyer. The correctivl;f proposal will include"j:mt flOt ~e li~ted to, the: name of the remediation company anq a projected cOlJlpletion date for corrective me~ures. Seller will provide cettificatipp. from a risk assessor or inspector that corrective measures have been. s~tisfactorily completed on or before the projected completion- c;late. 4. Upon receiving the corrective proposal, Buyer, within ~ DAYS, will: a. Accept the corrective proposal and the Property in writing, and agree to the RELEASE set forth in paragraph 25 of this Agreement, OR b. Tenninate this Agreement in wJ;iting, in which ~ase all deposit monies paid on account of purchase price will be returned promptly to Buyer and this Agreement will be VOID. 5. Should Seller fail to submit a written corrective proposal within the time set forth in paragraph 10(D)3 of this Agreement, Buyer, within -L DAYS, will:__ a. Accept the Property in writing, an4:agree to the RELEASE set forth in paragraph 25 of this Agreement, OR b. Terminate. this Agreement in writing"in which case all deposit monies paid on account of purchase price will be returned promptly to Buyer and this-Agreement will be VOID. 6. Buyer's failure to exe~jse any ~f Buyer's options within the time limits specified in this :parag~ph will constitute a WAIVER of Ibis eOntin!l....~!lI'd,Blly...~!l\)1'11' Ibe Property and agrees to the RELEASE set forlbinpar~~apb 25 of thjs Agreement. (E) Ceftific_~~n:~~;By signing, thi.s Agreemenf,liluYttr and Seller certify the accuracy of their respective statements, to the best of their knowledge. 11. STATUS OF RADON (1-o2) (A) Seller represents,~t Seller has no knowledge concemiQ.g the presence or absence of radon unless checked below. o 1. Seller,has knowledge that the Property was tested on the dates, by the methods (e.g., charcoal canister, alpha track, etc.), and with the'results of all test~ indic~t~d below: DATE TYPE qF TEST :',)~:ESULTS (picocurieslHter or working levels) 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 151 252 253 254 255 256 257 258 25' 260 261 262 263 264 265 266 267 26. 269 270 271 272 273 274 275 276 277 m 279 280 281 282 283 284 285 286 287 28il 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 COPIES ,OF ALL AVAILABLE TEST REBOll.TS will ~e delivered to Buyer with this Agreement SELLER DOES NOT WAR- RANT EITHER THE METHODS OR RESULTS OF THll TESTS. o 2. Seller has knowledge that the Property underwent radon reduction measures on the date(s) and by the methodes) indicated below; DATE RADON REDUCTION METHOD (B) RADON INSPECTION CONTINGENCY o WAIVED. Buyer understands that Buyer has the option to request that the Pr'operty be inspected for radon by a certified inspector (see Environ~ mental Notices: Radon). BUYER W AlVES THIS OPTION and agrees to the RELEASE set forth in par.graph 25 of this Agreement .~ ELECTED. Buyer, at Buyer's_expe~~e,,~s the option ,to obtain, from a certified, inspector, a radon test-of the Property, and will deliver a copy , of the test report to Seller within '_ .)',_ ~<j DAYS (15 days if not specified) of the execution of this Agreement. (See Environmental Notices: Radon) 1. If the test report reYeals, the presence of radon below 0.02 working levels (4 picocurieslliter), Buyer accepts the Property and agrees to the RELEASE set forth in paragr.ph 25 of this Agreement 2. If the test report reveals the presence of radon at or exceeding 0.02 working levels (4 picocuries/liter), Buyer will, within -2.- DAYS of receipt of the test results: R Option 1 ,/ . a. Accept 1he Prnperty in writing and agree In the RELEASE ,el fnrth in paragraph 25 of Ihis Agreemenl. OR b. Tennin,ate this Agreement in wrlqng, in which case all deposit monies paid on account of purchase price will be returned promptly to Buyer and this Agreement will he VOID, OR c. Submit a written, corrective proposal to Seller. The corrective proposal will include, but ,not be limited to, the name of the certified miti~ gation company; provisions for paymen~, including retests; and a projected completion date for corrective measures. (1) Within.......:L DAYS of receiving the corrective proposal, Seller will: (a) Agree to the terms of the corrective proposal in writing, in which case Buyer accepts the Property and agrees to the RELEASE set forth in par.graph 25 of this Agreement, OR (ll) Not,!-gree to the terrn~ of the corr~ctive proposal. (2) Should Seller Dat l;lgree to the tenus of the corrective proposal or if Seller fails to .resp,ond. within the time giv~n, Buyer will, withiIl -L DAYS, elecl 10: (a) Aeceplt!je Property in writi~g lljldagree to the RELjlASE set forth in paragr.ph 25 of this AgreeQleot, OR (b) Te~ate this Agre~Q1~nt in writing, i~ wtrich case all geppsit,mpnies paid Dn account_of purchase price will be returned promptly, to Bqyer and th,is Agreem~nt will be vprn. D Option 2 a. Accept the Property in writing and agree to the RELEASE set forth ip paragraph 2~ of this Agreement, OR b. Submit a written, corrective proposal to. Seller. The corrective proposal will include, but not be limited to, the name of the certified miti~ gation company; provisions for payment, including retests; and a projected completion date for corrective measures. Seller will pay a max~ imum of $ toward the total cost of remediation and retests, which will be completed by settlement. (1) If the total cost of remediation and retests EXCEEDS the amount specified in paragraph ll(B) (Option 2) b, Seller will, within -L DAYS of receipt of the cost of remediation, notify Buyer in writing of Seller's choice to.: (a) Pay for the total cost of remediation and retests, in which case Buyer accepts the Property and agrees to the RELEASE set forth in paragraph 25 of this Agreement, OR (b) Contribute toward the total cost of remediation and retests only the amount specified in paragraph II(B) (Option 2) b. (2) If Seller chooses not to pay for the total cost of remediation and retests, or if Seller fails to choose either option within the time given, Buyer will, within~ DAYS, notify Seller in writing of Buyer's choice to: (a) Pay the difference between Seller's contribution to remediation and retests and the actual cost thereof, in which case Buyer accepts ,the-Property and agrees to the-RELEASE set forth in paragraph. is of this Agreerrieftt, OR (b) Terminate this 'Agreement, in which case all deposit monies paid on account of purchase price will be returned promptly to Buyer and this Agreement will be VOID. 12. STATUS OF WATER (1-o2) (A) Seller represents that the Property is served by: ',CY Pnhlic Water " D." On-site Water o Community Water o None D (B) WATER SERVICE INSPECTION CONTINGENCY o WAIVED. Buyer acknowledges that Buyer has the option to request-an inspection of the water service for the Property. BUYER WAIVES TIllS OPTION and agrees to the RELEASE set forth in paragraph 25 of this Agreement. D ELECTED I. Buyer has the option, within _ DAYS (15 days if not specified) of the execution of this Agreement and at Buyer's expense, to deliver to Seller a written inspection report by a qualified, professional water testing company of the quality andlor quantity of the water service, A/S.2K Page 4 of 8 322 Seller Initials: ~~lt,M.i1.iBiM~~~~'",Jl"I'I,j,II"'lm;j~_""~""iiI<:,,~J!Iijjl~II"'''''''' '" ~ -iIilIllI.-~~ , J<.NVIRUNMENTAL NUTlCES ~ ~ -~lIIllo\ljJ.'- -~.",. '-1' I Asbestos: The heat-resistant and durable nature of asbestos inakes it useful in construction and industry. The 'physical propertiddhat ~lve asbestos its resis- tance to heat and decay are linked Wlth several ad-verstfhurrtah h~alth effects. Asbestbs can easily break into rhicrosco~ic fi?~ts th~t'cani remam suspended in the air for long periods of time. When inhaled, these _fibers'~aSny penetrate body tissue. Asbestos is known tb cause_.Asb~s~~sis ,and 'vatious forms of cancer. Inquiries or requests for Ifiote information about asbestos can be directed to the U.S. Erivironmental Protection Ag~ricy,' Arie] Rios Building, 1200 Pennsylvania Ave., N.W., Washington, D.C. 20460, and/or the Department of Health, Commonwealth of Pennsylvania, DiV~j.Hon dfEnvironmental Health. Harrisburg, PA 17120. Electromagnetic Fields: Electromagnetic Fields (EMFs) occur around aU electrical appliances and power lines. ConClusive evidence that EMFs pose health risks does not exist at present, and Pennsylvania has no laws regarding this issue. Lead: (For Proper1ies built before 1978) I , I"~ I' I II II! Environmental Hazards: The U.S. Environmental Protection Agency has a list of hazardous substances, the use arid disposal of-which are restricted by law. Generally, if hazardous substances are found ori a property,. it is the property owner's resporlsi'bility to dispose ofthem ropetIy. For more information and a list of hazardous substances, contact U.S. Ehv'ironmental Protection Agen'cy, Ariel Rios BuildIng, 1200 Pe . ~.,"N.W.': Washington, D.C. 20460. (202) 260-2090. Wetlands: Wetl3lids are protected by both the fMetal and slate govemmehts. Btiyeftnaywisri -to mental engineer to determine if pennits for plans to -build, improve, or develop the 'prbp'erty wo" Lead Warning Statement: Every purchaser of any interest in res' notified that such property may present exposure to lead fro lead2- Lead poisoning in young children may produce penn behavioral problems, and impaired memory. Lea . so tial real property is required to provide the,:' seller's possession and notify the bu hazards is recomtnended prior to pu !ial dwelling was built prior to 1978 is ildren at risk of developing lead poisoning. din ing disabilities, reduced intelligence quotient, to pregnant women. The seller of any interest in residen- paint haiards from risk a'ssJessrnertts or inspections in the . A risK as'sessmeht of'inspection for possible lead-based paint ance with the Residential Lead-Based Paint Hazard Reduction Act, any seller of property proved lead hazards infonnation pamphlet titled Protect Your, Family ~rom Lead in Your the Brok the known presence of lead-based paitIt and/or lead-based pa'i'nlhazards- hi-or on the prop- r determining that lead-based paint and/or lead-based paint hazards eXist, the '-I6cati6n bf ldtd-based paint condition of painted surfaces. Aoy sellet of it pre-1918 struCfuremust also provide the buyer with any 'pertaining tb lead-based paint and/or lead'based paint hazards in or about the property being sold, the com- 'sitlen eUings in multi-family' housing. The Act further requires that before ~'buyer' is obligated to- putchase any hous- 1978, the seller will give the buyer 10 days (unless buyer and seller agree in writing to another time period) to conduct a ectiOJi for the presence oflead-based paiIit-aild.!or lead-based paint hazards. The opportunity ttrcondtid a;risk assessment or ay be waived by the buyer, in writing. Neither testing nor abaternenfis required of the seller. Rbusing builtfn 1'978 or later is not eAct. Radon: Radon is a natural, radioactive gas that is produced in the ground by the nOtmal decay of uranium and radium. Studies indicate'tlHi.fexterided expo- sure to high levels of radon gas can increase- the risk of lting cancer.' Radon can' find its way into any- air-spaci.~;' iricltidiilg 'basemeHts 'and crawl spaces and can penneate: a structure. The U.S. Environmental PrOt~dion Agency (EPA) :idvises corrective action if the' annual average eJt.poshie-to tadori exceeds 0.02 working levels or 4 picocuries/liter. If a house has a radon problem, it usually can be cured by increased ventilation hnd/hr -by 'pteventing radon entry. Any person who tests, mitigates, ot'safeguards a building fefraden in Pennsylvania must be ceitified'by,the Department dfEnvironmental-Prorection. Information about radon and about ce.rtified'tflsting or'rhitigationfitms is available through Department-of'Erivironmental Protection, Bureau:tJf-Ratlhi1ion Protection, 13th Floor. Rachel Carson State Office Bnilding, P.O. Box 8469. Harrisburg, PA 17105-8'469, (800) 23RADON ot (717) 783-3594. MoldlFungi and Indoor Air Quality: Indoor mold contamination and 'the inhalation of bioaerosols. (bacteria,'-mold spores; pollen, and viruses) have been associated with allergic responses including upper respiratory congestion, cough, mucouS merfibrane'imtation~ fever, chills(tnuscle' ache or other transient inflammation of allergy. Clahns"hiive, been asserted: 'that expoSure' to mold contamination and''bfoaetdsols has led t6 ~eri6tis' infecfton,' immunosuppression and illnesses of neuro or systemic toxicity. Sampling of indoor air quality and other methods exist to determine the -pre~sence' and scope of any indoor con- tamination. Because individuals nlay be affected differentlYi or not affected at all, by mold cOr/tamhl'atibn,' the- surest appi6ach'-to determine the presence of contamination is to engage the serviCes of a 'qualified ptofessional to utideftake -~n asses'sment artdlor saIrlPling',Ass_e'ssmei1t!r and samplings for the presence of mold contamination can be performed by qualified industrial hygienists, engineers; r~boratoties' and hdme inspection',t;'(jfupanies that offer thes!:,: .~ervices. Information pertaining to indoor air quality is available through the United States Environmental Protection Agency and may be obtairied-'11y ~ont~cting IAQ INFO, P.O. Box 37133, Washington. D.C. 20013-7133,]-800-438-4318. ' , ~-- ~ ,,"~^~',~-~ .~" ~ .~ .... -I ~ ., "" __.....gl..........i.-... ..~-~"'.~ _~_~"'"., 2. Seller agrees to locate and provide access to the on-site (or individual) water system, if applicable, at Seller's expense, if required by the 323 inspection company. Seller also agrees to restore the Property, at Seller's expense, prior to settlement. 324 3. If the report reveals that the water service ;does not meet the minimum standards of any applicable governmental authority and/or faBs to 325 satisfy the requirements for quality and/or quantity set by the mortgage lender, if any, then Seller will, within-L DAYS of receipt of 326 the report, notify Buyer in writing of Seller's choice to: 327 a. Upgrade the water service.to the minimum acceptable levels, before settlement, in which case Buyer accepts the Property and ag:rees 32a to the RELEASE set forth in paragraph 25 of this Agreement, OR 329 b. Not upgrade the water service. 330 4. -If Seller chooses not to. upgrade the service to minimum acceptable levels, or fails to respond within the time given, Buyer will, within 331 ~ DAYS, either: 332 a. Accept the Property and the water service and, if required by the mortgage lender, if any, and/or any governmental authority, upgrade 333 the water service before settlement or within the time required by the mortgage lender, if any, and/or any governmental authority, at 334 Buyer's expense and with Seller's perrnission, which will not be unreasonably withheld, and agree to the RELEASE set forth in para- 335 graph 25 of this Agreement. If Seller denies Buyer permission to upgrade the water service, Buyer may, within~ DAYS. of 336 Seller's denial, terminate this Agreement in writing, in which case all deposit monies paid ,on account of purchase price will be 337 returned promptly to Buyer and this Agreement will he VOID, OR 338 b. Terminate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned promptly 339 to Buyer and this Agreement will be VOID. 340 13. STATUS OF SEWER (1-02) 341 (A) Sel!er represents that the Property is served by: 342 ~~~ ~ "0 Individual On-lot Sewage Disposal System (See Sewage Notice I) 344 o Indiyidual On-lot Sewage Disposal System in Proximity to Well (See Sewage Notice 1; see Sewage Notice 4, if applicable) 345 o CO~'lnunity Sewage Disposal System 346 o Ten-acre Pennit Exemption (See Sewage Notice 2) 347 o Holding Tank (See Sewage Notice 3) 348 o None (See Sewage Notice 1) 3<9 o None AvailablelPerrnit Limitations in Effect (See Sewage Notice 5) 350 o m (B) INDIVIDUAL ON.LOT SEWAGE DISPOSAL INSPECTION C()NTINGENCY 352 o WAIVED. Buyer acknowledges that Buyer has the option to request art:individual on~lot sewage disposal inspection of the Property. BUYER 353 WAIVES THIS OPTION and agrees to the RELEASE set forth in paragraph 25 of this Agreement 35., o ELECTED 355 1. Buyer has the option, within _ DAYS (15 days if not specifIed) of the execution of this Agreement and at Buyer's expense, to 3S6 deliver to Seller a written inspection report by a qualitied, professional inspector of the individual on-lot sewage disposal system. 357 2. Seller, at Seller's expense, agrees, if and as required by the inspection cOIl?-pany, to locate, provide access to and empty the individual on- 358 lot sewage disposal system. Seller also agrees to restore the Property, at Seller's expense, prior to settlement. 359 3. If the report reveals defects that do not require expansion or replacement of the existing sewage disposal system, Seller will, within 3BO- ~ DAYS of receipt of the report, notify Buyer in writing of Seller's choice to: 361 a. Correct the defects before settlement, including retests, at Seller's expense, in which case Buyer accepts the Propelty and agrees to 362 the RELEASE set forth in paragraph 25 of this Agreement, OR 363 b. Not correct the defects. 364 4. If Seller chooses not to correct the defects, or if Seller fails to respond within the time given, Buyer will, within ----.i- DAYS, either: 365 a. Accept the Property and the system and, if required by the mortgage lender, if any, and/or any governmental authority, correct the 366 defects before settlement or within the time required by the mortgage lender, if any, and/or any governmental authority, at Buyer's 367 sole expense and with Seller's pennission', which will not be unreasonably withheld, a.nd agree to the RELEASE set forth in para- 368 graph 25 of this Agreement. If Seller denies Buyer permission to correct the defects, Buyer may, within ~ DAYS of Seller's 369 denial, tenninate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be rehImed 370 promptly to Buyer and this Agreement will be VOID, OR :m b. Terminate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned 372 promptly to Buyer and this Agreement will be VOID. 373 5. If the report reveals the need to expand or replace the existing individual on-lot sewage disposal system, Seller may, within ~DAYS 374 of receipt of the report, submit a corrective proposal to Buyer. The corrective proposal will include, but not be limited to, the name of the 375 remediation company; provisions for payment, including retests; and a projected completion date for corrective measures. Within 376 ~ DAYS of receiving Seller's corrective proposal, or if no corrective proposal is received within the time given, Buyer will: 377 a. Agree to the terms of the corrective proposal, if any, in writing, in which case Buyer accepts the Property and agrees to the RELEASE 378 set forth in paragraph 25 of this Agreement, OR 379 b. Accept the Property and the system and, if required by the mortgage lender, if any, and/or any governmental authority, correct the 380 defects before settlement or within the time required by the mortgage lender, if any, and/or any governmental authority, at Buyer's 381 sole expense and with Seller's pemission, which will not be unreasonably withheld, and agree to the RELEASE set forth in para- 382 graph 25 of this Agreement If Seller denies Buyer permission to correct the defects, Buyer may, within ~ DAYS of Seller's 383 denial, terminate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned 384 promptly to Buyer and this Agreement will be VOID, OR 385 c. Terminate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned promptly 385 to Buyer and this Agreement will be VOID. 3a7 14. NOTICES, ASSESSMENTS & CERTIFICATES OF OCCUPANCY (1-02) 388 (A) Seller represents, as of Seller's execution of this Agreement, that no public improvement, condominium or homeowner association assessments 389 have been made against the Property which remain unpaid, and that no notice by any government or public authority has been served upon 390 Seller or anyone on Seller's behalf, including notices relating to violations of zoning, housing, buildingj safety or fire ordinances which remain 391 uncorrected, and that Seller knows of no condition that would constitute violation of any such ordinances which remains uncorrected, unless 392 otherwise specified here: 393 394 (B) SeUer knows of nO other potential notices (including violations) and assessments except as follows: 395 396 (C) In the event any notices (including violations) and assessments are received after execution of this Agreement and before settlement, Seller will 397 notify Buyer in writing, within ~ DAYS of receiving the notice or assessment, that Seller will: 39B 1. Comply with notices and assessments at Seller's expense, in which case Buyer accepts the Property and agrees to the RELEASE set forth 399 in paragraph 25 of this Agreement, OR 400 2. Not comply with notices and assessments at SeHer's expense. 401 3. If Seller chooses not to comply with notices and assessments, or faDs within the time given to notify Buyer if Seller will comply, Buyer 402 will notify Seller within ~ DAYS in writing that Buyer will either: 403 a. Comply with notices and assessments at Buyer's expense and agree to the RELEASE set forth in paragraph 25 of this Agreement, OR 404 b. Terminate this Agreement, in which case all deposit monies paid on account of purchase price will be returned promptly to Buyer 4\)5. and this Agreement will be VOID. 406 If Buyer fails to notify Seller within the time given, Buyer accepts the Property and agrees to the RELEASE set forth in para- 407 graph 25 of this Agreement. 408 (D) Buyer is advised that access to a public road may require issuance of a highway occupancy permit from the Department of Transportation. 409 Buyer Initials: AJS~2K Page 5 of 8 Seller Initials: 410 iI!II~~"'-~j}jjjjhl *' ~ -'~~!!!ili!i:!Oi>""-i>I"""",,,j,"'~'M,","-'''W~'''''''''''''.-" - ru~III_1UlIl . ~,. ."'tIIt-~"'" ~,."""~,-. - ::;]!;WAl>J2, l'lUUL.J2,i') NOTICES PURSUANT TO THE PENNSYLVANIA SEWAGE FACILITIES ACT NOTICE I: THERE IS NO CURRENTLY EXISTING COMMUNITY SEWAGE SYSTEM AVAILABLE FOR THE SUBJECT PROPERTY. Section 7 of the Pennsylvania Sewage Facilities Act provides that no person shall instal-I, construct', request bid proposals for com;truction, alter, repair or occupy :my building or stmcture for which an individual sewage system is- to be installed, without first obtaining a pennit. Buyer is advised by this notice that, before signing this Agreement, Buyer should contact the local agency charged with administering the Act to determine the procedure and requirements for obtaining a permit for an individual sewage system. The local a eDCY charged with administering the Act will be the municipality where the Property is located or that municipality working coo others. PERMIT ides that a o an indi- t soils and the ~ystem at which occurs as a result. NOTICE 2: THIS PROPERTY IS SERVICED BY AN INDIVIDUAL SEWAGE SYSTEM IN EXEMPTION PROVISIONS OF SECTION 7 OF THE PENNSYlN permit may not be required before installing, constructing, awarding a vidual sewage system where a ten-acre parcel or lot' b 0 site testing were not conducted and that, s, c the time of a malfunction may be h NOTICE 3: MPORARY) TO WHI€HSEWAGE IS CON. ESI D CONSTRUCTED TO FACILITATE ULtIMATE TE. Purs the Pennsylvania Sewage Facilities Act, Seller must provide a history te of its installation or December 14, 1995, whichever is later. EM HAS BEEN INSTALLED AT AN ISOLATION DISTANCE FROM A WELL THAT IS LESS ^ TANCE SPECIFIED BY REG1JLATION. The regulations at 25 P:i. Code ~73.J3 pertaining to minimum horizontal iso- " n di ces provide guidance. Subsection (b) of *73.13 states that the minimum horizontal isolation distance between an individual water " ,-i.ipply or water supply system suction line and treatment tanks shall be 50 feet. Subsection (c) of ~73.l3 states that the horizontal isolation distance between the individual water supply or water supply system suction line and the perimeter of the' absorption area shall be 100 feet. NOTICE 5: THIS LOT IS WITHIN AN AREA IN WHICH PERMIT LIMITATIONS ARE IN EFFECT ANDIS SUBJECT TO THOSE LIMI- TATIONS. SEWAGE FACILITIES ARE NOT AVAILABLE FOR THIS LOT AND CONSTRUCTION OF A STRUCTURE TO BE SERVED BY SEWAGE FACILITIES MAY NOT BEGIN UNTIL THE MUNICIPALITY COMPLETES A MAJOR PLANNING REQUIREMENT PURSUANT TO THE PENNSYLVANIA SEWAGE FACILITIES ACT AND REGULATIONS PROMULGATED THERIEUNDER. .1 .1 " < ~ . - . ;;;,~ - - 411 __ 412 413 414 415 416 417 418 419 42U 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 45U 451 452 413 414 i 455 456 457 458 459 46U 461 462 463 464 465 466 467 466 469 410 471 472 473 474 475 476 477 478 479 480 481 462 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 _I ,_,,_.J ... .J~,~,i~~iIlIk' ~.J..".~,"_ (E) If required by law, within --.l.L DAYS of the execution of this Agreement Seller will order for delivery to BlJyer, on or before settlemen~: 1. A certification from the appropriate municipal department or departments disclosing notice of any uncorrected violations of zoning, hous- ing, building, safety or fire ordinances, AND/OR 2. A certificate permitting occupancy of the Property. In the event repairs/improvements are required for"the issuance of the certificate, Seller will, within -L DAYS of Seller's receipt of the requirements, notify Buyer of the requirements and whether Seller will make the required repairs/improvements at Seller's expense. If Seller chooses to make the required repairs/improvements, Buyer agrees to accept the Property as repaired and agrees to the RELEASE set forth in paragraph 25 of this Agreement. If Seller chooses not to make the required repairs/improvements, Buyer will, within ----5.-. DAYS, notify Seller in writing ofBuyef's choice to tenninate this Agreement OR make the repairs/improvements at Buyer's expense and with Seller's permission, which will not be unreasonably withheld. If Seller denies Buyer permission to make the required repairs or if Seller fails to respond within the time given; Buyer may, within..-L DAYS, tenninate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned promptly to Buyer and this Agreement will be VOID. 15. TITLE, SURVEYS & COSTS (1-02) (A) The Property is to be conveyed free and clear of all liens, encumbrances, and easements, EXCEPTING HOWEVER the following: existing deed restrictions, historic preservation restricti9~s or ordinances, building restrictions, ordinances, easements of roads, easements visible upon the ground, easements of record, privileges or rights of public service companies, if any; otherwise the title to the above described real estate will be good and marketable and such as will be insJJred by a reputable Title Insurance Company at the regular rates. (B) Buyer will pay for the following: (1) Title search/title insurance and/or mechanics lien insurance, or fee for cancellation of same, if any; (2) Flood insurance, fire insurance with extended coJ~fage, mine subsidence insurance, or fee for cancellation of same, if any; (3) Appraisal fees and charges paid in advance to mortgage lender, if:'~y; .~4) Buyer's customary settlement costs and accruals. (C) Any surveyor surveys which may be required by the.Ti~r Insurance Company or the abstracting attorney for the preparation of an adequate legal description ofthe Property (or the correction thereot)..will be secured and paid for by Seller. Any surveyor surveys desired by Buyer or required by the mortgage lender will be secured and paid f&~"by ~uyer. (D) In the event Seller is unable to give a good and marketable titIit.and such as will be insured by a reputable Title Company at the regular rates, as specifled in paragraph 15{A), Buyer will have the option of: (l) (~ng such title as Seller can give with no change to the purchase price; or (2) being repaid all monies paid by Buyer to Seller on account of purchase pfl~~ and being reimbursed by Seller for any costs inclllred by Buyer for any inspec- tions or certifications obtained according to the terms of the Agree~nt, and for those items specified.in paragraph 15(B) items (l), (2), (3) and in paragraph l5(C), in which case there will be no further liability or ohitgation on either of the parties hereto and this Agreement will become VOID. 16. ZONING CLASSIFICATION (1-02) "" Failure of this Agreement to contain the zoning classification (except in cas~~ where the property {and each parcel thereof, if subdividable} is zoned solely or primarily to permit single-family dwellings) will render this Agree)pent voidable at the option of (he Buyer, and, if voided, any deposits tendered by the Buyer will be retu~ed to the Buyer without any requiremenffw court action. Zoning Classification: f! )/.>'.',' ,.., , 1 I ,~"f'/ o ELECTED. Within -----1L DAYS of the execution of this Agreeme~!, Buyer will verify. .that the existing use of the Property as is permitted. I'Q..the event the use is not permitted, Buyer will, within the time given for verification, notify Seller in writing that the existing use of the Prop~rty is not permitted and this Agreement will be VOID, in which case all deposit monies paid on account of purchase price will be returned prdWptly to Buyer. Buyer's failure to respond within the time given will constitute a WAIVER of this contingency and all other terms of-t~ Agreement remain in full force and effect. 17. CO~L NOTICE :[3::, NOT APPLICABLE o APPLICABLE THIS DOCUMENT MAY NOT SELL, CONVEY, TRANSFER, INCLUDE OR INSURE THE TITLE TO THE COAL~ RIGHTS OF SUPPORT UNDERNEATH THE SURFACE LAND DESCRIBED OR REFERRED TO HEREIN, AND THE OWNER OR OWNERS OF SUCH COAL MAY HAVE THEC~MPLETE LEGAL RIGHT TO REMOVE ALL SUCH COAL AND IN mAT CONNECTION, DAMAGE MAY RESULT TO THE SURFACE OF THE LAND AND ANY HOUSE, BUILDiNG OR OTHER STRUCIURE ON OR IN SUCH LAND. (This notice is set forth in the manner provided in Section 1 of the Act of July 17, 1957, P.L. 984.) ":B4yer acknowledges that he may not be obtaining the right of protection against subsidence resulting from coal mining operatious, and that'the property described herein may be protected from dam;lge due to mine subsidence by a pdvate contract with the owners of the economic interests in the coat This acknowledg~ment is made for the purpose of complying with the provisions of Section 14 of the Bituminous Mine Sub~idence and the Land C&nservation Act of April 27, 1966." Buyer agrees to sign the deed from Seller which deed will contain the aforesaid provision. 18. POSSESSION (1-02) (A) Possession is to be delivered by deed, keys and: 1. Physical possession to vacant Property free of debris, with all structures broom-clean, at day'"and time of settlement, AND/OR 2. Assignment of existing lease(s), together with any security deposits and interest, at time' ;of settlement, if Property is leased at the execution of this Agreement or unless otherwise specifled herein. Buyer will acknowledge ex:~sting lease(s) by initialing said lease(s) at time of execution of this Agreement. (B) Seller will not enter into any new leases, written extension of existing leases, if any, or additionalle~ses for the Property without the written consent of Buyer. 19. RECORDING (3-85) This Agreement win not be recorded in the Offke for the Recording of Deeds or in any other office or place of public record and if Buyer causes or permits this Agreement to be recorded, Seller may elect to treat such act as a breach of this Agreement. 20. ASSIGNMENT (3-85) This Agreement will be binding upon the parties, their respective heirs, personal representatives, guardians and successors, and to the extent assignable, on the assigns of the parties hereto, it being expressly understood, however, that Buyer will not transfer'or assign tilis Agreement without the written consent of Seller. 21. DEPOSIT & RECOVERY FUND (1-02) (A) Deposits paid by Buyer within ~ DAYS of settlement will be by cash, cashier's or certified check. Deposits, regardless of the fonn of payment and the person.Jesignated as payee, will be'paid in U.S. Dollars to Broker or party identified in paragraph 3(B), who will retain them in aTI-escrow account until consummation or termination of this Agreement in confonnity with all applicable laws and regulations. Any uncashed check tendered as deposit monies may be held pending the acceptance of this offer. (B) Upon termination of this Agreement, the Broker holding the deposit monies will release the deposit monies in accordance with the tenns of a fully executed wdtten agreement between Buyer and Seller. (C) In the event of a dispute over entitlement to deposit monies, a broker holding the deposit monies is required by the Rules and Regulations of the State Real Estate Commission (49 Pa. Code ~35.327) to retain the monies in escrow until the dispute is resolved. In the event of litigation for the return of deposit monies, a broker will distribute the monies as directed by a final order of court or the written Agreement of the parties. Buyer and Seller agree that, in the event any broker or affiliated licensee is joined in litigation for the return of deposit monies, the attorneys' fees and costs of the broker(s) and licensee(s) will be paid by the party joining them. (D), A Real Estate Recovery Fund exists to reimburse any persons who have obtained a final civil judgment against a Pennsylvania real estate licensee owing to fraud, misrepresentation, or deceit in a real estate transaction and who have been unable to collect the judgment after exhaust- ing all legal nnd equitable remedies. For complete details about the Fund, call (717) 783-3658, or (800) 822-2113 (witbin Pennsylvania) and (717) 783.4854 (ontside Pennsylvania). 22. CONDOMINIUMIPLANNED COMMUNITY (HOMEOWNER ASSOCIATION) RESALE NOTICE (1-02) -:8( NOT APPLICABLE o APPLICABLE: CONDOMINIUM. Buyer acknowledges that the Property is a unit of a condominium that is primarily run by a unit owners' association. ~3407 of the Unifonn Condominium Act of Pennsylvania requires Seller to furnish Buyer with a Celtificate of Resale and copies of the condominium declaration (other than plats and plans), the bylaws, and the rules and regulations of the association. o APPLICABLE: PLANNED COMMUNITY (HOMEOWNER ASSOCIATION), Buyer acknowledges that the Property is part of a planned community as defined by the Uniform Planned Community Act. (See Definition of Planned Community Notice). ~5407(a) of the Act requjres Seller to furnish Buyer with a copy of the Declaration (other than plats and plans), the bylaws, the rules and regulations of the association, and a Certificate containing the provisions set forth in ~5407(a) of the Act. Buyer Initials: AlS-2K Page 6 of 8 Seller Initials: 411 412 .n3 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 "3 439 440 44'j 442 443 444 [.45 44& 447 443 449 450 451 452 453 454 455 456 457 458 459 4&0 461 462 463 464 465 4&6 467 46a 459 470 471 472 473 474 475 476 477 478 m 480 451 482 483 484 485 486 487 488 48. 490 491 492 493 494 495 496 497 498 *-~,,~" ^""...................I."iI".~" < ~'"".."..J 499,- . . 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 52' 530 531 532 533 534 535 536 537 538 539 540 541 542 543- 544 545 546 547 54& 549 550 551 552 553 554 555 556 557 558 559 560 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 578 57' 580 581 S82 583 584 585 .-, ~",I_~ ~-,"-~~w.,.,.~,,_, . THE FOLLOWING APPLIES TO PROPERTIES THAT ARE PART OF A CONDOMINIUM OR A PLANNED COMMUNITY. (A) Within ~ DAYS of the execution of this Agreement, Seller will submit a request to the association for a Certificate of Resale and the doc~ uments necessary to enable Seller to comply with the Act. The Act provides that the association is required to provide these documents within 10 days of Seller's request. (B) Seller will promptly deliver to Buyer all documents received from the association. Under the Act, Seller is not liable to Buyer for the failure or delay of the association to provide 'the Certificate in a timely manner, nor is Seller liable to Buyer for any erroneous information provided by , the association and included in the Certificate. (C) Buyer may declare this Agreement VOID at any time before Buyer's receipt of the association documents and for 5 days thereafter, OR until settlement, whichever occurs first. Buyer's notice declaring this Agreement void must be in writing; thereafter all deposit monies .will be returned to Buyer. (D) In the event the association has the right to buy the Property (right of first refusal), and the association exercises that right, Seller will reimburse Buyer for all monies paid by Buyer on ac~ount of purchase price and for any costs incurred by Buyer for: (1) Title search, title insurance and/or mechanics lien insurance, or fee for canc~llation of same, if any; (2) Flood insurance andlor flre insurance with extended coverage, mine sub- sidence insurance, or fee for cancelIation of-.S,ame, if any; (3) Appraisal fees and charges paid in advance to mortgage lender, if any. 23. MAINTENANCE & RISK OF LOSS (1-02) '., (A) Seller will maintain the Property, grounds, fixbi~s, and any personal property specifically scheduled herein in its present condition, normal wear and tear excepted. y,~ (B) In the event any system or appliance included in the~le of the Property fails and Seller does not repair or replace the item, Seller will prornptly notify Buyer in writing of Seller's choice to: .' j:.\. 1. Repair or replace: the failed system or appliance- b~ore' settlement or credit Buyer at settlement for the fair market value of the failed sys- tem or appliance (this option must be acceptable_ t~he !TIortgage lender, if any). In each case, Buyer accepts the Property and agrees to the RELEASE set forth in paragraph 25 of this A~r~ent, OR 2. Not repair:~r rePlace, ' the fai,led system or apPlian~" '~' .d.. ,n.,'.o, t., credit Buyer at settlement for the fair market value of the failed system or appliance. If Seller ,does not repair, replace or offer, :.cr'edit for the failed system or appliance, or if Seller fails to notify Buyer of Seller's choice, Buyer will notify Seller in writin ~. itPin ~ DAYS or before settlement, whichever is sooner, that Buyer will: -', ~ a. Accept the Property and agree to the RELEASE set ~ 11} paragraph 25 of this Agreement, OR b. Terminate this Agreement, in which case all deposit m ,_ 'l paid on account of purchase price will be returned promptly to Buyer and this Agreement will be VOID, , ' (C) Seller will bear risk of loss from fire or other casualties until time 0(' ~ment. In the event of damage by fire or other casualties to any prop- erty included in this sale that is not repaired or replaced, prior to sef_~ "ment, Buyer will have the option-of rescinding this Agreement and promptly receiving all monies paid on account of purchase price or of a~f.Pl, ,I"ing the Property in its then condition together with the proceeds of any insurance recovery obtainable by Seller. Buyer is hereby notified u,,:Buyer may insure Buyer's equitable interest in this Property as of the time of execution of this Agreement. -:~ .' 24. WAIVER OF CONTINGENCIES (1 -02) .:~ If this Agreement is contingent on Buyer's right to inspect and/or repair the Pro~:_BUyer's failure to exercise any of Buyer's options within the time limits set forth in this Agreement will constitute 3' WAIVER of that co~gency and Buyer accepts the Property and agrees to the RELEASE set forth in paragraph 25 of this Agreement '{~ 25. RELEASE (1-02)"' Bnyer herehy releases, quit claims and forever discharges SELLER, ALL BROKE~, their.LICENSEES, EMPLOYEES, and any OFFI. CER or PARTNER of anyone of them and any olher PERSON, F1RM, or CORPO .. C TION who may be liable by or through them, from any and all claims, losses or demands, including, but not limited to, personal injuries an' ,roperty damage and all oftbe consequences there- of, whether now known or not, which may arise from the presence of termites or oth' . ood-boring insects, radon, lead-based paint haz- ards, environmental hazards, any defects in the individual on-lot sewage disposal systeni:~", deficiencies in the on-site water service system, or any defects or conditions on the Property. Should Seller be in default under the te~.()f this Agreement, this_release does not deprive ,.-.,; Buyer of any right to pursue any remedies that may be available under law or equity. Thiskrelease will survive settlement. 26. REPRESENTATIONS (1-02) ':\c (A) Buyer understands that any representations, claims, adveltising, promotional activities, broch~rs or plans of any kind made by Seller, Brokers, their licensees, employees, officers, or partners are not a part of this Agreement unless express~ incorporated or stated in this Agreement. It is further understood that this Agreement contains the whole agreement between SeHer and Bu~r and there are no other terms, obligations, covenants, representations, statements or conditions, oral or otherwise of any kind whatso~\ler concerning this sale. Furthermore, this Agreement will not be altered, amended, changed, or modified except in writing executed by the'iarties. (B) It is understood that Buyer bas inspected the Property before signing this Agreement (incldiJing fixtures and any personal property specifically scheduled herein), or has waived the right to do so, and has agreed to purchase th~roperly in its present condllion unless otherwise stated' in this Agreement. Buyer acknowledges that Brokers, their licensees, employ~s, officers or partners have not made an independent examination or determination of the structural soundness of the Property, tbe ~~ or condition of the components, envi- ronmental conditions, the permitted uses, or of conditions existing in the locale where the PropJ~y is situated; nor have they made a mechanical inspection of any of the systems contained therein. (C) Any repairs required by this Agreement will be completed in a workmanlike manner. (D) Broker(s) may perform services to assist unrepresented parties in complying with the tenns of this Agreetnent. (E) The headings, captions, and line numbers in this Agreement are meant only to make it easier to find the paragraphs. 27. DEFAULT (1-02) (A) Seller has the option of retaining all sums paid by Buyer, including the deposit monies, should Buyer: 1. Fail to make any additional payments as specified in paragraph 3; OR 2. Furnish false or incomplete information to Seller, Broker(s), or the mortgage lender, if any, concerning\Buyer's legal or financial status, or fail to cooperate in the processing of the mortgage loan application, which acts would result in the failure to obtain the approval of a mortgage loan commitment; OR 3. Violate or fail to fulfill and perform any other tenus or conditions of this Agreement. (B) Unless otherwise checked in paragraph 27 (C), Seller may elect to retain those sums paid by Buyer, including deposit monies, in one of the following manners: I. On account of purchase price; OR 2. As monies to be applied to Seller's damages; OR 3. As liquidated damages for such breach. (C) "~(Seller is limited to retaining sums paid by Buyer, including deposit monies, as liquidated damages. (D) If Seller retains all sums paid by Buyer, including deposit monies, as liquidated damages pursuant to paragraph 27 (B) or (C), Buyer and Seller will be released from further liability or obligation and this Agreement will be VOID. 28. MEDIATION (7-96) o NOT AVAILABLE o WAIVED. Buyer and Seller understand that they may choose to mediate at a later date, should a dispute arise, but that there will be no obli- p;ation on the part of any party to do so. g('ELECTED -"(A) ~ Buyer and Seller will try to resolve any dispute or claim that may arise from this Agreement through mediation, in accordance with the Rules and Procedures of the Horne Sel1ersIHome Buyers Dispute Resolution System. Any agreement reached through a mediation conference and signed by the parties will be binding, (B) Buyer and Seller acknowledge that they have received, read, and understand the Rules and Procedures of the Home Sellers/Home Buyers Dispute Resolution System (see Mediation Notice). (C) This agreement to mediate disputes arising from this Agreement win survive settlement. 499 500 501 502 503 504 505 50G 507 506 509 510 511 512 513 5'14 515 516 517 518 519 520 52i 522 523 524 525 526 527 528 529 53U 531 532 533 534 535 556 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 561 562 563 564 555 566 587 568 569 570 571 572 573 574 575 576 577 578 579 580 581 582 583 SB4 6.85 586 Buyer Initials: A/S.2K Page 7 of 8 Seller Initials: 586 1~~I~_IIIiIiiMti_~= ~il;l~\:ml.e~"",.,J,,".yL~L)-""~"il""~'litilllllli~!lIi""" .... ,< ,-~"--~" ~,,"--,,,,,,",,,~~...,,,,,. ....., "il UJ..lI1l~111Ul"'l ur l\. rLl\.i'lI~I~U CUn'IiHL'l'H 1 I ~ . . . he Uniform Planned Community Act defines "planned community" as real estate with respect to which a person, by virtue of ownership of an interest in any portion of the real estate, is or may become obligated by covenant, easement or agreement imposed on the owner'& interest to pay any amount for real property taxes, insurance. maintenance, repair, improvement, management, administration -or regulation of any part of the real estate other than the portion or interest owned solely by the pen.;on. The tenn excludes a cooperative and a condominium, but a cooperative or condominium may be part of a planned community. For the purposes of this definition, ''()wnership'' includes holding a leasehold interest of more than 20 years, including renewal options, in real estate. The term includes non-residential campground communities. Exemptions from the Uniform Planned Community Act - When a Certificate of Resale Is Not Required The owner of a property located within a planned community is not required to furnish the buyer with a certificate of resale under the following circum- stances: A. The Planned Community contains no more than 12 units; provided there is no possibiJity of adding real estate or subdividing units to increase the size of the planned community. B. The Planned Community is one in which all of the units are restricted exclusively Co non-residential lise, unless the declaration provides that the resale provisions are nevertheless to be followed. C. The Planned Community or units are located outside the Commonwealth of Pennsylvania. D. The transfer of the unit is a gratuitous transfer. E. The tralu;fer of the unit is required by cOUlt order. F The transfer of the unit is by the government or a governmental agency. G. The transfer of the unit is the result of foreclosure or in lieu of foreclosure.' Generally speaking, the Real Estate must make certain disclosures reg exchange, installment sales contr NOT MORE THAN ' e ffeting Statement and its er executes this Agreement. Buyer ially and adversely affect Buyer. For endihents no later than the date the Buyer g Statement and any amendments that material- Notices Regarding Public Offering Statements and R If Seller is a DecJai.ant of the' condominium or planned community, Seller is requited' B amendments. For condominiums, the delivery of the Public Offering Statement m may cancel this Agreement within 15 days after receiving the Public Offering St planned communities, thl.': Dedarant must provide the Buyer with a co P executes this Agreement. Buyer may cancel this Agreement ly and adversely affect Buyer. INFORMATlO that bef agreement of sale is signed, the seller in a residential real estate transfer ers in a form defined by the law. A residential real estate transfer is defined as a sale, or other transfer of an interest in real property where NOT LESS THAN ONE AND TS are involved. The Law de . L 2. 3. 4. 5. 6. 7. 8. 9. 10. sclosures do not have to be made: order. en er t result from a buyer's default and subsequent foreclosure sales that resl1lt from default. er to one or more other co-owners. e ouse or direct descendant. ween spouses that result from divorce, legal separation, or property settlement. Trans y a corporation, partnership or other association to its shareholders, partners or other equity OWners as part of a plan of liquidation. Transfer of a property to be demolished or converted to non-residential lIse. Transfer of unimproved real property. Transfers by a fiduciary during the administration of a decedent estate, guardianship, conservatorship or tt:ust. Transfers of new construction that has never been occupied when: a. The buyer has received a one-year warranty covering the construction; b. The building has been inspected for compliance with the applicable building code or, if none, a nationally recognized model building code; and A certificate of occupancy or a certificate of code compliance has been issued for the dwelling. c. In addition to these exceptions, disclosures for condominiums and cooperatives ate limited to the seller's particular unit(s). Disclosures regarding common areas or facilities are not required, as those elements are already addressed in the laws that govern the resale of condominium -and cooperative interests. EXECUTION DATE An chaoges to the Agreement shonld be initialed and dated. The date of execution is the date when Bnyer and Sener bave indicated fun acceptance of this Agreement by signing and/or initialing it. 55,",- , 500 589 598 591 592 593 594 29. SPECIAL CLAUSES (1-02) . (A) The following are part of this Agreement if checked: o Sale & Settlement of Other Property Contingency Addendnm (PAR Form SSP) o Sale. & Settlement of Other Property Contingency with Right to Continue Marketing Addendum (pAR Form SSP-CM) I l o Settlement of Other Property Contingency Addendum (PAR FJm SOP) o Tcnant-Occupied Property Addendum (PAR Form TOP) o o o 587 58& 589 500 591 592 593 594 51:1S 596 597 59B 599 600 601 602 603 504 605 6116 607 ... 609 610 611 612 613 614 615 616 6i7 (B) 595 596 597 598 / 599/ 6<10 601 602 603 60' 665 6011. 607 603 609 610 611 612 613 614 "'1:;1' 615 615 617 7!", ""~~ c \ 616 619 620 621 622 623 624 625 626 627 628 629 630 631 632 633 63' 635 836 637 63' 639 646 641 642 643 644 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 661 662 663 664 665 666 667 668 669 670 671 619 620 621 622 623 624 625 626 627 628 629 630 631 632 633 634 635 636 537 53B 639 Buyer and Seller acknowledge receiving a copy of this '4- \~~nt at the time of signing~ ' '\ ',* NOTICE TO PARTffiS: WHEN SIGNED, THIS AGRE ' Agreement, and all addenda, bearing' the signatures of all to consult an attorney before signing if they desire legal ad IS A BINDING CONTRACT. Re1nruby facsimile transmission (FAX) of this "> stitutes acceptance of this Agreement. Pa~es to-this transaction 8fe advised " ;;;, '+0 ;:f:i Bnyer has received the Consumer Notice as adopted by t ,:8 Buyer-has received a statement of Buyer!s estimated closi ' . .::E1,/ Buyer has read and understands the notices and explanato ~'I:!J'" Buyer has received a Seller's Property Disclosure Statement Ii the Real Estate Seller Disclosure Law). Buyer has received the Deposit Money Notice (for cooperative saf Agreement. e eal Estate Commission at 49 Pa. Code ~3S.336. efore signing this Agreement. atioD set forth in this Agreement. Ding this Agreement, if required hy'law (see Information Regarding en Broker for Seller is holding deposit money) before signing this {x. '(~i . J~ , ; 1'1-,.0'1 BUYER'S MAILING ADDRESS: " .,~. "," " 618 BUYER'S CONTACT NUMBER(S): .:.:~:t1: WITNESS .. " BUYER SS# DAlE \.,- .. ! '" ,:,-r:,r:f.,rl' ,^ .r." DATE WITNESS BUYER SS# WITNESS BUYER SS# DATE -,14" Seller has received the Consumer Notice as adopted by the State Real Estate Commissio~''"t 4 _ ">~'~~ Seller has received a statement of Seller's estimated closing costs before signing this Agreeinent.., ,./ [;~:(:"SeJler has read and understands the notices and explanatory information set forth in this Agree SELLER'S MAILING ADDRESS: DAlE 640 SELLER'S CONTACT NUMBER(S): 64'1 642 643 644 645 646 647 546 649 650 651 662 653 654 655 556 657 658 659 50. 661 662 663 664 665 666 667 668 66' 670 671 WITNESS SELLER SS# DAlE WITNESS SELLER SS# DAlE SELLER SS# WITNESS Broker'sfLicensees' Certifications (check all that are applicahle): "J4~~ Regarding Lead-Based Paint Hazards Disclosure: Required if Property was built before 1978: The undersigned Licensees involved in ^ ~ this transaction, on behalf of the~elves and their brokers, certify that their statements are true to the best of their knowledge and belief. Acknowledgement: The Licensees involved in this transaction have informed Seller of Seller's obligations under The Residential Lead-Based Paint Hazard Reduction Act, 42 D.S.C. ~4852(d), and are aware of their responsibility to enSure compliance. o Regarding FHA Mortgages: The undersigned Licensees involved in this transaction, on behalf of themselves and their brokers, certify tha~ the terms of this contract for purchase are true to the best of their knowledge and belief, a~d th,at any other agreement entered into by any of these parties in connection with this transaction is attached to this Agreement. "",' "" .."..". Regarding Mediation: The undersigned [~I.J3roker for Seller paragrapb 28 of this Agreement o Broker for Buyer agree to submit to mediation in accordance with BROKER FOR SELLER (Company Name) ACCEPTED BY ~.,~,.( DATE ..',1 BROKER FOR BUYER (Company Name) ACCEPTED BY .-,'. DATE A/S.2K Page 8 of 8 BUYER'S COPY AT TIME OF SIGNING ~1U~lIi-~_.ilrf~'~iI;~~aU,",bi>1,.,'''~l48.i'''kdliliill''''''Ill~~Ill~'''1Il ....~iili"'- ~.~ r,lt' MEDiATION ~. DISPUTE RESOLUTION SYSTEM RULES AND PROCEDURES Agreement of Parties The Rules and Procedures of the Displlte Resolution System (DRS) apply when the parties have agreed in writing to mediate under DRS. The wrHten agreement can be achieved by a standard clause in an agreement of saJe, an addendum to an agreement of sale, or through a separate written agreement. Initiation of Mediation If a dispute exists, any party may start the mediation process by submitting a completed Request to Initiate Mediation DRS Transmittal Form (Transmittal Form) to the local Association of REALTORS@ (hereafter "Administrator"). The Transmittal Form should be available through the Administrator's office. The initiating party should try to include the following information when sending the completed Transmittal Form to the Administrator: a. A copy of the written agreement to mediate if there is one, OR a request by the initiating party to have the Administrator contact the other par- ties to the dispute to invite them to join the mediation process. b. The names, addresses and telephone numbers of the parties involved in the dispute, including the name of every insurance company known to have received notice of the dispute or claim and the corresponding file or claim number. c. A brief statement of the facts of the dispute and the damages or relief sought. I. Selection of Mediator Within five days of receiving the completed Transmittal Form, the Administrator win send each party to the"dispute a copy of the Transmittal Form and a list of qualified mediators and their fee schedules. Each party then has ten days to review the ,list 'Of mediators, cross Qff the name of any mediator to whom the party- objects, and return the list to the Administrator. The Administrator will appoint the first av:ailable,mediator who is acceptable to all parties involved. A mediator who has any financial or personal interest in the dispute or the results of the mediation cannot serv parties are informed and give their written consent. paines- will follow t Mediation Fees Mediation fees will be divided equally among the parties and will be paid the payment terms contained in the mediator's fee schedule. ;. Time and Place of M~diatjon Conference Within ten days of being appoi time and place of the mediation conference, The mediator must give at leAlst not be more than sixty days from the mediator's appointment to tl ~. put ontact the parties and set the date, . -The mediation conference should 6. Conduct of Mediation Conference The -parties attend a. Have the authority to enter into and sign b. Produce all information required for rials, descriptions of witnesses an mation before the date 0 dispute. The information may include relevant written mate- mediator can require the parties to deliver written materials and infor- ment ne ation. n dispute and reach a mutually agreeable solution. llon, to bind the parties to his or-her decision, or to force the parties to reach a settlement. 7. . " - ," . " . - - ,--,,,, 01 party who intends to bea~colilpanledJo the m.ciiati~oc(1!It'eJ~~cabY1Cg!'li:PPltsefw~ll nptifyfue.111eiiiator;arid the tentatldisttendays ~eforettie,conference. .' . . 8. Confidentiality No aspect of the mediation can be relied upon or introduced as evidence in any arbitration, judicial or other proceeding. This includes, but is not limited to, any opinions or suggestions made by any party regarding a possible settlement; any admissions made during the course of the medi- ation; any proposals or opinions expressed by the mediator; and any responses given by any party to bpinions; suggestions, -or proposals. No privilege will be affected by disclosures made in the course of the mediation. Transcripts or recordings of the mediation will not be allowed without the prior, written consent of all parties and the mediator. Records, reports, and other documents received or prepared by the mediator or Administrator cannot be compelled by an arbitration, judicial, or other proceeding, with the exception of an agreement that was reached in the course of mediation and signed by all the parties. Neither the mediator nor the Administrator can be compelled to testify in any proceeding regarding information given or representations made either in the course of the mediation or in any confidential communication. 9. Mediated Settlement When a dispute is resolved through mediation, the mediator will put the complete agreement in writing and all parties will sign the written agreement within ten days of the conclusion of the mediatjon conference. Every reasonable effort will be made Lo sjgn the written agreement at the end of the conference. O. Jndicial Proceedings and Immnnity NElTHER THE ADMINISTRATOR. THE MEDIATOR, THE NATIONAL ASSOCIATION OF REALTORS@. THE PENNSYLVANIA ASSOCIATION OF REALT9RS@, NOR ANY OF ITS MEMBER BOARDS, WILL BE DEEMED NECESsARY OR' INDISPENSABLE PARTIES TN ANY JUDIClAL PROCEEDINGS RELATING TO MEDlATION UNDER THESE RULES AND PROCEDURES, NOR WILL ANY OF THEM SERVING UNDER THESE PROCEDURES BE LIABLE TO ANY PARTY FOR ANY ACT. ERROR OR OMISSION IN CONNECTION WITH ANY SERVICE OR THE OPERATION OF THE HOME SELLERSlHoME BUYERs- DISPUTE RESOLUTION SYSTEM. ''<, l' L~ ' t"" , ~-I . -,. '"',-, - L :,:~;_:;j .; ... John J. Connelly, Jr., Esquire Attorney LD. No. 15615 James Smith Dietterick & Connelly, LLP P.O. Box 650 Hershey, PA 17033 Attorneys for Defendant RECEIVED APR 07 2Oll5 ,h~ j/'"' ORIGINAL NANCY A. REED, Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL ACTION - LAW MICHAEL D. REED, Defendant No. 2000-2123 Civil Term In Divorce REPLY BRIEF OF DEFENDANT/PETITIONER Two points in the brief of Plaintiff, Nancy A. Antis (hereinafter "Wife") require a further response on behalf of DefendantlPetitioner Michael D. Reed (hereinafter "Husband"). First, Wife argues that the requested reduction of alimony would be inequitable because Husband's request focuses solely upon her windfall in the sale of the marital residence while failing to consider possible increases in the law firm and business entities allocated to him in the Property Settlement Agreement. This argument blithely ignores the language of the Agreement itself, which specifically provides for a reduction in alimony based upon increased income to Wife at Paragraph 10 (E) thereof, but is silent as to any adjustment based upon increases in Husband's income. The present petition is not based upon a theory of equitable distribution, asking the court to weigh the relative value of assets and make its own determination. Rather, it simply seeks to enforce the specific language of the Agreement voluntarily negotiated and entered into between these parties. If Wife wished Paragraph 10 (E) to be applied equally to Husband, she was free to negotiate for such a provision. Clearly, none exists in the Agreement. As such, the argument of Wife as to a hypothetical increase in the value of assets assigned to Husband (there is nothing in the record to support such a hypothesis) is without merit and should be sllIIlIIl.arily rejected by this Court. In addition, Wife's windfall from the significant gain in the value of the house occurred immediately after the execution of the Agreement. .-"-- ,-- "" 1,.-:, ,,,-,>,,. ,. ( ), Second, Wife argues that there was no agreement between the parties as to the value of the house immediately prior to distribution, thus rendering the reasoning of Miller v. Miller, 783 A.2d 832,836 (Pa. Super. 2001) inapplicable. However, this argument ignores not only Wife's deposition testimony that she believed the house to be worth "probably $230,000" (Deposition of Nancy Amis at p.14), but also her filing in August 2003 ofa "Statement of Value" with the Recorder of Deeds, stating the value to be $229,000. (See Exhibit A to DefendantlPetitioner's Petition for Reduction of Alimony). These statements precisely coincided with Husband's understanding of the value of the house at that time (see Deposition of Michael Reed at p.29). Therefore, the parties did agree as to the presumed value of the house at the time of the Agreement, and had negotiated using that value as an offset to the assets being assigned to Husband (see Deposition of Michael Reed at p. 15). Since there was an agreed upon value, the excess proceeds received for sale of the house over and above that value must be considered as income under the rationale of Miller v. Miller. supra. Therefore, for the reasons set forth above as well as in his original briefto this Court, Husband respectfully requests the Court to enter an order reducing his alimony payments as provided in the Property Settlement Agreement and as requested in the Petition. Respectfully submitted, JAMES, SMITH, DIETTERICK & CONNELLY, LLP Dated: ~ By: Attorneys for Defendant, Michael D. Reed 2 1- - ,'~- ,- . _r ";_~-.'" - .. ^ ,- - ,:'u '''~', "' . " - '""~, . -.~ ,~ _" ; ,hl-.'" -:,~:, ",,' ',..;. ',"_ :,"J , . NANCY A. REED, Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL ACTION - LAW MICHAEL D. REED, Defendant No. 2000-2123 Civil Term In Divorce CERTIFICATE OF SERVICE I, John J. Connelly, Jr., Esquire, ofJames, Smith, Dietterick & Connelly, LLP, attorney for the Defendant, Michael D. Reed, hereby certify that I have served a copy of the foregoing Reply Brief on the following on the date and in the manner indicated below: U.S. MAIL. FIRST CLASS. PRE-PAID The Honorable Edgar B. Bayley Cumberland County Courthouse One Courthouse Square Carlisle, P A 17013 Samuel L. Andes, Esquire 525 North 12th Street Lemoyne, Pennsylvania 17043 JAMES, SMITH, DIETTERICK & CONNELLY, LLP Dated: ~ By: Attorneys for Defendant, Michael D. Reed . John 1 Connelly, Jr., Esquire Attorney tD. No. 15615 James Smith Dietterick & Connelly, ILP P.O. Box 650 Hershey, P A 17033 Attorneys for Defendant RECEIVED APR 0 7,~ \ NANCY A. REED, Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v, CML ACTION - LAW MICHAEL D. REED, Defendant No. 2000-2123 Civil Term In Divorce REPLY BRIEF OF DEFENDANT/PETITIONER Two points in the brief of Plaintiff, Nancy A. Amis (hereinafter "Wife") require a further response on behalf of Defendant/Petitioner Michael D. Reed (hereinafter"Husband"). First, Wife argues that the requested reduction of alimony would be inequitable because Husband's request focuses solely upon her windfall in the sale of the marital residence while failing to consider possible increases in the law firm and business entities allocated to him in the Property Settlement Agreement. This argument blithely ignores the language of the Agreement itself, which specifically provides for a reduction in alimony based upon increased income to Wife at Paragraph 10 (E) thereof, but is silent asio any adjustment based upon increases in Husband's income. The present petition is not based upon a theory of equitable distribution, asking the court to weigh the relative value of assets and make its own determination. Rather, it simply seeks to enforce the specific language of the Agreement voluntarily negotiated and entered into between these parties. If Wife wished Paragraph 10 (E) to be applied equally to Husband, she was free to negotiate for such a provision. Clearly, none exists in the Agreement. As such, the argument of Wife as to a hypothetical increase in the value of assets assigned to Husband (there is nothing in the record to support such a hypothesis) is without merit and should be summarily rejected by this Court. In addition, Wife's windfall from the significant gain in the value of the house occurred immediately after the execution of the Agreement. -..., .~ I'" \ Second, Wife argues that there was no agreement between the parties as to the value of the house immediately prior to distribution, thus rendering the reasoning of Miller v. Miller, 783 A.2d 832, 836 (Pa. Super. 2001) inapplicable. However, this argument ignores not only Wife's deposition testimony that she believed the house to be worth "probably $230,000" (Deposition of Nancy Amis at p.14), but also her filing in August 2003 ofa "Statement of Value" with the Recorder of Deeds, stating the value to be $229,000. (See Exhibit A to Defendant/Petitioner's Petition for Reduction of Alimony). These statements precisely coincided with Husband's understanding of the value of the house at that time (see Deposition of Michael Reed at p.29). Therefore, the parties did agree as to the presumed value of the house at the time of the Agreement, and had negotiated using that value as an offset to the assets being assigned to Husband (see Deposition of Michael Reed at p. 15). Since there was an agreed upon value, the excess proceeds received for sale of the house over and above that value must be considered as income under the rationale of Miller v. Miller. supra. Therefore, for the reasons set forth above as well as in his original brief to this Court, Husband respectfully requests the Court to enter an order reducing his alimony payments as provided in the Property Settlement ..~greement and as requested in the Petition. Respectfully submitted, JAMES, SMITH, DIETTERICK & CONNELLY, LLP Dated: "i t ~ \ 0 S- By: ~ ,J. 40OO\J. Conne~, Jr. \ IAttorheVLD,'5615 U \) WBoH$O Hershey, P A 17033-0650 (717) 533-3280 Attorneys for Defendant, Michael D. Reed 2 ~~ I " :~I I. .\ NANCY A. REED, Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL ACTION - LAW MICHAEL D. REED, Defendant No. 2000-2123 Civil Term In Divorce CERTllnCATEOFSERVICE I, John J. Connelly, Jr., Esquire, of James, Smith, Dietterick & Connelly, LLP, attorney for the Defendant, Michael D. Reed, hereby certify that I have served a copy of the foregoing Reply Brief on the following on the date and in the manner indicated below: u.s. MAIL, FIRST CLASS, PRE-PAID The Honorable Edgar B. Bayley Cumberland County Courthouse One Courthouse Square Carlisle, P A 17013 Samuel L. Andes, Esquire 525 North 12th Street Lemoyne, Pennsylvania 17043 JAMES, SMITH, DIETTERICK & CONNELLY, LLP . , Dated: ~ By: \.; OluV ponn~y, Jr. ~tn~ LD.#15615 ( P.O. Boxo50 Hershey, P A 17033-0650 (717) 533-3280 -. Attorneys for Defendant, Michael D. Reed '-1 "1 , ~ \ 1 l :i ;1 jj J " ;1 ~! r; ~! il 'i ,-; ;1 'I ;i 1 !i (; 51 ~ -'p~~""'1 John 1. Connelly, Jr., Esquire Attorney LD. No. 15615 James Smith Dietterick & Connelly, LLP P.O. Box 650 Hershey, P A 17033 Attorneys for Defendant RECEIVED APR 0'1 ZOOS rr NANCY A. REED, Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL ACTION - LAW MICHAEL D. REED, Defendant No. 2000-2123 Civil Term In Divorce REPLY BRIEF OF DEFENDANTIPETITIONER Two points in the brief of Plaintiff, Nancy A. Amis (hereinafter "Wife") require a further response on behalf of Defendant/Petitioner Michael D. Reed (hereinafter "Husband"). First, Wife argues that the requested reduction of alimony would be inequitable because Husband's request focuses solely upon her windfall in the sale of the marital residence while failing to consider possible increases in the law firm and business entities allocated to him in the Property Settlement Agreement. This argument blithely ignores the language of the Agreement itself, which specifically provides for a reduction in alimony based upon increased income to Wife at Paragraph 1 0 (E) thereof, but is silent as to any adjustment based upon increases in Husband's income. The present petition is not based upon a theory of equitable distribution, asking the court to weigh the relative value of assets and make its own determination. Rather, it simply seeks to enforce the specific language of the Agreement voluntarily negotiated and entered into between these parties. If Wife wished Paragraph 10 (E) to be applied equally to Rusbfuid, she was free to negotiate for such a provision.uClearly, none exists in the Agreement. As such, the argument of Wife as to a hypothetical increase in the value of assets assigned to Husband (there is nothing in the record to support such a hypothesis) is without merit and should be summarily rejected by this Court. In addition, Wife's windfall from the significant gain in the value of the house occurred immediately after the execution of the Agreement. '. 'I, Second, Wife argues that there was no agreement between the parties as to the value of the house immediately prior to distribution, thus rendering the reasoning of Miller v. Miller, 783 A.2d 832, 836 (pa. Super. 2001) inapplicable. However, this argument ignores not only Wife's deposition testimony that she believed the house to be worth ''probably $230,000" (Deposition of Nancy Amis at p.14), but also her filing in August 2003 of a "Statement of Value" with the Recorder of Deeds, stating the value to be $229,000. (See Exhibit A to DefendantlPetitioner's Petition for Reduction of Alimony). These statements precisely coincided with Husband's understanding of the value of the house at thattime (see Deposition of Michael Reed at p.29). Therefore, the parties did agree as to the presumed value of the house at the time of the Agreement, and had negotiated using that value as an offset to the assets being assigned to Husband (see Deposition of Michael Reed at p. 15). Since there was an agreed upon value, the excess proceeds received for sale of the house over and above that value must be considered as income under the rationale of Miller v. Miller. supra. Therefore, for the reasons set forth above as well as in his original brief to this Court, Husband respectfully requests the Court to enter an order reducing his alimony payments as provided in the Property Settlement Agreement and as requested in the Petition. Respectfu1ly submitted, JAMES, SMITH, DIETTERICK & CONNELLY, LLP Dated: ~ By: ~/N,. ~~- John\T. Connei\y, Jr. ~tt~et!.D. ~615 U \) P.O. Boit-&.)O Hershey, P A 17033-0650 (717) 533-3280 '. ;1 Attorneys for Defendant, Michael D. Reed 2 ~ " \ NANCY A. REED, Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL ACTION - LAW MICHAELD. REED, Defendant No. 2000-2123 Civil T= In Divorce CERTWICATEOFSERVICE I, John J. Connelly, Jr., Esquire, of James, Smith, Dietterick & Connelly, LLP, attorney for the Defendant, Michael D. Reed, hereby certify that I have served a copy of the foregoing Reply Brief on the following on the date and in the manner indicated below: U.S. MAIL, FIRST CLASS, PRE-PAID The Honorable Edgar B. Bayley Cumberla:nd County Courthouse One Courthouse Square Carlisle, P A 17013 Samuel 1. Andes, Esquire 525 North 12th Street Lemoyne, Pennsylvania 17043 JAMES, SMITH, DIETTERICK & CONNELLY, LLP By: Dated: ~ IJ folu\ J. ponn ly, Jr. ~~6,y I.D. #15615 P.O. Boxo50 Hershey, P A 17033-0650 (717) 533-3280 Attorneys for Defendant, Michael D. Reed 'i ~ ~ I 1 !i F 'ii ~ {j ;J ;j ;1 \: '.j '!] I ~) ;1 I ,I I '! :'1 I j ,f) " ;~ i,i! ,-, :'t , II ~1 ~ " l~~'_"_"'1 , NANCY AMIS (FORMERLY REED), : IN THE COURT OF COMMON PLEAS OF PLAINTIFF : CUMBERLAND COUNTY, PENNSYLVANIA V. MICHAEL D. REED, DEFENDANT : 00-2123 CIVIL TERM IN RE: PETITION OF MICHAEL D. REED FOR A REDUCTION OF ALIMONY ORDER OF COURT AND NOW, this '2-~~ day of April, 2005, the petition of Michael D. Reed for a reduction in alimony, IS DENIED. Edgar B. Bayley, J. ~muel L. Andes, Esquire For Plaintiff ~hn J. Connelly, ESqUire, 2, For Defendant ~. :sal - ~I-'- -, ,"C '. J _ _,~r,-_'_~ ,__ -. "_ . ~ , , . lIr- , e _ ,._,~_:I!L V'I~;\ih"',\' q"I\pd . I ~', I \ I. ~J. ~_ ".,." lU'lnr'-.. ~".' -.' ........ "'.n" ( i\t ,j.: \.!:./'.:' ::~::;'il'\~ l'J 9~ :8 Hd 22 tldiJ SOUl 1"\-1] '." ',"'.JLO" , -Hi -'0 f\dv. ~Ui\:UJ-1-. 00 j .:J 38H::1o-0311:l ~ ~y n, --, '" ^ ~- ~ --~"' . "'f'-'."'"","""''''''' ''''Jl1''''~ifn:~nlu': y c , IlI!!I'!liI" ~~~cl~ ","_ ~_' ~"III!lI!lu"n __~._ ,J~I.~Ji; \ ., " I 11 1 B ~ I !I t ~ )-4 'il ]1 ;! Ii II ;j 11 11 ~ ,'] 'J jt l.'I.'.' " "i l~ ij ;11 ;~ oil '~I i~ ....'1'..'...' .' 1; m )'1 ',I ); ',~. ij i'l ::i f!! i~j :;j :~j :\ ~.1 ;2 ;c'j ':'Gm.. """"'1' NANCY AMIS (FORMERLY REED), PLAINTIFF IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. MICHAEL D. REED, DEFENDANT 00-2123 CIVIL TERM IN RE: PETITION OF MICHAEL D. REED FOR A REDUCTION OF ALIMONY OPINION AND ORDER OF COURT Bayley, J., April 22, 2005:-- Nancy Amis (formerly Reed), and Michael D. Reed were married on July 9, 1982. On April?, 2000, wife filed a complaint in divorce. On May 16, 2003, the parties, represented by separate counsel, entered into a comprehensive, integrated Property Settlement Agreement. A divorce decree was entered on May 29, 2003.' The Property Settlement Agreement included the following: ALIMONY. Husband shall pay alimony to Wife as follows: A. He shall pay alimony in the amount of $1,500.00 per month for as long as he is obligated to pay child support for the parties' son Peter pursuant to Paragraph 2 hereof. In the month in which his child support obligation terminates, and each consecutive month thereafter during the term of the alimony payment as provided in Sub-Paragraph B hereof, he shall pay alimony to Wife in the amount of $2,463.00. The amount of alimony shall be subject to modification in accordance with Sub- Paragraph E hereof. Otherwise, the amount of alimony shall not be subject to modification or change and shall continue in the amount provided for in this Sub-Paragraph until terminated in accordance with Sub-Paragraph B hereof. B. The alimony shall continue through the end of February 2010 or until Husband's death, Wife's death, Wife's remarriage, or Wife's cohabitation with another man, not her spouse or a member of her immediate family, whichever shall first occur. Otherwise, the alimony shall not be subject to termination. . . . E. The alimony payments agreed to herein were based upon an estimated earning capacity of $20,000.00 per year for Wife. In the 1 For ease of reference we will still refer to the parties as husband and wife. . >'-,'<:'" -."-,-,-," --"- "', __:'~___7__ ',^"',"" _._-~---- - k ,"", '-Ic~ I'" ~ -,-- - "~ - -~ '" 00-2123 CIVIL TERM event that Wife's actual gross income exceeds $40,000.00 in any calendar year during the duration of the alimony payments, Husband's alimony obligation shall be reduced by one-half of any amounts by which Wife's income exceeds $40,000.00. This reduction shall apply in the calendar year(s) following the calendar year(s) Wife's gross income exceeds $40,000.00. Wife agrees to provide a copy of her Federal tax return to Husband annually on or before May 1 of each calendar year during the duration for the alimony payments. (Emphasis added.) The Agreement provided that it "shall be incorporated, but not merged, in the final decree in divorce to be entered in the action now pending between the parties." By stipulation of the parties, the alimony provision was entered as an order of court on July ~j " t ~ II' , , ,. ;il ill ;'1 m i-' 17,2003. The Property Settlement Agreement further provided: RESIDENCE. Husband shall convey to Wife, to be her sole and separate property, the marital residence at 100 Mooreland Avenue in the Borough of Carlisle, Cumberland County, Pennsylvania. With regard to the property, the parties specifically agree as follows. . . B. Wife accepts the property subject to the existing mortgage lien against it and promises that she shall, within ninety (90) days of the date of this Agreement, refinance the mortgage debt or otherwise obtain Husband's unconditional release from any further liability on the debt secured by such mortgage, and provide proof to Husband that he has been released from such obligation. In the event that Wife is not able to refinance the property or otherwise obtain Husband's unconditional release from the obligation which encumbers the property, within ninety (90) days of the date of this Agreement, Wife shall, upon Husband's written demand, list the property for sale with a local real estate agent and make all reasonable efforts to conclude the sale of the property in a prompt fashion. . .. In the event of the sale of the property pursuant to this paragraph, all of the net proceeds of sale shall bepa'yable to and belong to Wife. . . . D. The parties acknowledge and represent to each other that, other than the mortgage provided for herein, there are no liens, encumbrances, or other charges against the title to the property. Wife agrees that she shall pay, in the ordinary course of business, all expenses arising out of her ownership, use, or ii! fi' 11' ~ Iii j,' f:j , ~ji ~ ~1 ',J ;,~ ~!: ;;-! ", ~~ ;i '.:1l... ~ L ii' " Pi ',{ ':'i :!:! \i "I ',j -2- ;", .1 ..'....1. ,', , .'1 ",_. "," ',_0,_" "-,- I ,- ~ 00-2123 CIVIL TERM , l i 1 I I I I ~ ii " IT , , ~ :1 rj l 'i ~, tl tl II II ~~ ii; ;,i " occupancy of the property from. the date of this Agreement into the indefinite future and shall indemnify and save harmless Husband from any loss, cost, or expense caused to him by her failure to do so. (Emphasis added.)' The parties purchased this residence in 1997, for $205,000. In May, 2003, at the time they signed the Property Settlement Agreement, husband thought that the property was worth $225,000 to $230,000, but because of its unique location and being a distinctive house he thought it might bring $250,000. Wife thought that the property might be worth a little higher than $218,000. Neither party had the property appraised before the Agreement was signed. On May 23, 2003, seven days after the Agreement was signed, wife first met with a realtor, Mary B. Fitts, of Jack Gaughen Realtor ERA. On Fitts' advice, the property was listed at $345,000. Two weeks later a contract was signed for $338,000. Settlement was held August 15, 2003. From the gross sales price of $338,000, wife netted $163,422.86. f! On July 27,2004, husband filed "Petition for Reduction in Payment of Alimony." ):1 ~! 51 ~ [I He averred: , fi il ~', lO' iil I!, ~ , iil "I r ~l ;;j "I ~ ~l "" ~l ;:~ d '.'1 ~~ '.' ;:j "~ i:" :.j ,j ;,,' :1; The proceeds of the sale of the house at 100 Mooreland Avenue which Nancy Amis retained represents at least $109,000.00 of actual gross income to her (being the difference between the market value 2 Wife obtained some other assets and she and husband divided some assets. Husband obtained all his interest in a law firm in which he is a member, Mette, Evans and Woodside, River Oaks Associates, a partnership which owns the building where the law firm practices, River Oaks Leasing Company, a partnership which owns office equipment leased to the law firm, South Central Agency, Inc., which operates a real estate title insurance business, his IRA, and all checking and savings accounts in his name. Neither party had husband's interest in the law firm, office building, equipment lease or title insurance business appraised before the Property Settlement Agreement was signed. -3- . ", ", ""'_'-1 ,":,"' ,,-, -c'-,' ,.. " , 1,~ '_' ^ ,,-__ -pL,-~,., -.,. " 00-2123 CIVIL TERM negotiated in the Property Settlement Agreement and the actual sale price). Because of the significant proceeds to Nancy Amis over and above the value used in negotiations for the Property Settlement Agreement, it is alleged and therefore averred that Nancy Amis had an actual gross income in addition to any income reported on her 2003 tax return of $109,000.00 as set forth in Paragraph 13 hereof. Accordingly, Michael D. Reed would be entitled to a reduction in the amount of at least $34,500.00 in his alimony obligation for the year 2004. Michael D. Reed is entitled to an immediate reduction of payment of alimony to zero dollars for the remainder of 2004 and a reduction in 2005 of such additional amounts as may be appropriate based upon a final review of Nancy Amis's tax return for 2003, all in addition to any reduction which Michael D. Reed may be entitled to with respect to any income earned by Nancy Amis in 2004. WHEREFORE, Petitioner Michael D. Reed respectfully requests this Court to enter an Order reducing his alimony obligation to zero dollars for the remainder of 2004 and reducing his alimony obligation for 2005 in an amount appropriate to reflect the appropriate amount of credit for actual gross income earned by Nancy Amis in 2003 over and above $40,000.00, together with such other remedies as this Court shall deem just and appropriate. In Hutchison v. Sunbeam Coal Corporation, 513 Pal 192 (1986), the Supreme Court of Pennsylvania stated: ',:, I " ~ fl Ii I ~I ~ Ij II ~i ~1 i'l l'~ u ~1 Ii' t; [.-) r'~ o1'J d , "1 ,I ;,< Determining the intention of the parties is a paramount consideration in the interpretation of any contract. The intent of the parties is to be ascertained from the document itselfwhen the terms are clear and unambiguous. (Citations omitted.) In the present case, the parties' Property Settlement Agreement provides that the alimony due wife is subject to modification in only one circumstance: "[I]n event that Wife's actual gross income exceeds $40,000.00 in any calendar year." That circumstance is prefaced with the following sentence: "The alimony payments agreed to herein were based upon an estimated earning capacity of $20,000.00 per year for -4- :', "J t~ ,?" "]<- , - , - ," '-"-'" -~. "" I~C' ,', 00-2123 CIVIL TERM Wife." Those two clauses must be read together. When done so, there;s no ambiguity as to the intent of the parties for which the terms of their own contract controls. "Actual gross income" is related to earning capacity. Accordingly, the alimony may be modified only if wife has earned income in excess of $40,000 in any calendar year. Notwithstanding, citing in its brief the Pennsylvania Superior Court in Humphreys v. DeRoss, 737 A.2d 775 (Pa. Super. 1999), husband argues that "the plain meaning of the terms used in the Property Settlement Agreement and the statutory definitions in the Pennsylvania Domestic Relations Code require that the profit realized on the sale of the marital residence be treated as income." In Humphreys, the 'I I: ~I Superior Court of Pennsylvania held, "[t]hat the lump sum receipt of an inheritance, part of the overall financial picture of the party owing support, must be considered as I ~'!l I II II lj il II l~ H [I ii 11 ;: [ I ~ ~,'i income to that party when calculating the support obligation." Husband's reliance on this opinion is misplaced because it was reversed by the Supreme Court of Pennsylvania. The Supreme Court concluded, "In light of the fact that we can find no principled way of fitting the corpus of an inheritance into the statutory definition of 'income,' we hold that it may not be so included," although it may be considered when adjusting a support obligation pursuant to Pa.R.C.P. 1910.16-5. Humphreys v. ~~ ~ll ";! DeRoss, 790 A.2d 281 (Pa.2002). ~ t:i Iii' h ,"~I ;11 r+ ;Jl '~ Citing Miller v. Miller, 783 A.2d 832 (Pa. Super. 2001), husband further argues in its brief that "the treatment of the windfall amount as income is not changed by the fact that the marital residence was an asset specifically assigned to Wife in the Property G i':~1 -5- :; i~:: :,i] "l~ ., f:rl F.." " " -- - . T - - ,. '" ~_" ~ _ '., ,n" ',n" '__ , '- 0_ ."-.-" - --_~. :" I 00-2123 CIVIL TERM Settlement Agreement." He notes that the definition of "income" at 23 Pa.C.S. Section 4302, "includes. . . gains derived from dealings in property. . . and any form of payment due to and collectable by an individual regardless of source." In Miller, husband and wife entered into a property settlement agreement in 1999. The facts as set forth by the Superior Court were: The Agreement also addressed an amount of timber owned by the couple. The terms of the Agreement provided that based on an appraised value of $21,000.00, Husband was to secure a buyer for the timber and Wife was to sign all necessary documentation so that the timber could be sold. As a result of the sale, Wife was to receive a $10,500.00 credit on any obligation she had to Husband and Husband was permitted to retain the proceeds of the sale. Ultimately, the timber sold for less than the appraised value and Husband realized $5,785.00 on the sale.2 Finally, the Agreement provided that, based upon all considerations, Wife was to pay Husband a lump sum amount of $14,100.00. The lump sum actually was fixed at $31,600.00, but was reduced by the timber credit ($10,500.00) and a credit for half of the equity in the rental property that had been awarded to Husband ($7,000.00). Prior to the Agreement, the parties were operating under a child support order that obligated Husband to pay $569.30 per month to Wife. A few months after the Agreement was in place, Wife filed for a modification of child support. In her petition, she asserted that changed circumstances required an increase in Husband's child support obligation. Specifically, Wife requested that the court recalculate Husband's income to include the money he received as a result of equitable distribution, i.e., the proceeds from the timber, the proceeds from the sale of the rental property and the lump sum payment from Wife. 2 Despite the $21,000.00 appraisal, the timber sold for $17,994.00. After crediting Wife $10,500.00 and paying state and federal taxes, Husband was left with $5,785.00. Wife asserted that the lump sum payment she made to Husband, along with the proceeds from the sale of the timber and the rental property, were income attributable -6- l' F '''1-. , .' ~-- ,- --- :<--- -_~I" . ~-- 00-2123 CIVIL TERM to husband because they were "gains derived from dealings in property, entitlement to money or lump sum awards, without regard to source" and "form[s] of payment due to and collectable by an individual regardless of source." The trial court disagreed and refused to adjust husband's income. The Superior Court of Pennsylvania affirmed. The Court stated: I .1 I I I il I I I ! I II ~ I ,..' " r,! ~ ~ Iii ~ i: ! ~j ;i It is settled law that "money included in an individual's income for the purpose of calculating support payments may not also be labeled as a marital asset subject to equitable distribution." Rohrer v. Rohrer, 715 A.2d 463, 465 (Pa.Super.1998). We hold today that the reverse is also true. Money received from the sale of an asset awarded in equitable distribution may not be included in an individual's income for purposes of calculating support payments. The single caveat to this rule is that any gain realized in the sale of the asset may, indeed must, be included in the calculation of income.4 4A gain would occur if the sale of the asset resulted in proceeds in excess of the value at the time of equitable distribution. The Court noted: It is both illogical and inequitable to characterize any of these assets, or the proceeds from their sale, or the credit given as a result of a sale, as income. Consider, for example, a marital home awarded to a wife in equitable distribution. If the wife cannot afford to maintain the house and therefore sells it for the amount at which it was valued at equitable distribution, are the proceeds considered income to her, thereby reducing the amount of child support due from the children's father? Such a result would be absurd and certainly not within the contemplation of S 4302's definition of income The Court concluded: ir I It is clear from the Agreement in this case that Husband and Wife intended to take equal shares of the timber and the rental property.5 The manner in which they did so was to award Husband the proceeds of the asset (in the case of the timber) or the asset itself (in the case of the fl ,I t' Iii ,il Iii I" 1: m:1 f! ~J it1 !I [, ri, . -7- '""-1"'- "--''(-~--'' ._,y. .-,. -, ~ - ,. ""_'''_"I~' I",) 00-2123 CIVIL TERM rental property) and grant Wife a credit for each. The fact that Husband received cash in hand at the end of the transaction, while Wife's proportionate shares took the form of credits, is irrelevant. Husband's share is no more "income" than is wife's share. The timber and the rental property were capital assets in the marital pot. They were distributed to the parties via a method set out in the Agreement. The proceeds from them cannot be deemed income for either party.6 5 Of course, the timber ultimately was sold for less than expected. Ironically, this change in value worked to Wife's benefit as her share, in the form of a credit, was unaffected. 6 However, in keeping with the rule we set out above, in the event Husband sold rental property for more than the value given it in the Agreement, the gain realized would be attributable to him as income. Similarly, if the proceeds from the timber sale had exceeded the appraised value set out in the Agreement, the increase would be attributable to Husband as income. In Miller, the money wife sought to characterize as income was not a windfall to husband. Rather, it was the amount husband received in equitable distribution, or, the amount intended to "effectuate economic justice between the parties who are divorced . . . and insure a fair and just determination and settlement of their property rights." 23 Pa.C.S. Section 3102. Despite this holding, husband in the case sub judice seizes on Footnote 6, arguing in his brief: The present case embodies the exact situation contemplated by the Court in Miller as quoted above. Wife has received $108,000.00 in income in excess of the amount she and Husband both believed the marital residence was worth at the time of the Property Settlement Agreement. Therefore, the excess over and above $230,000.00 should be treated as income to Wife for purposes of the Agreement and the Order entered by this Court on July 17, 2003. As such, the $108,000.00 windfall income to Wife should be used to calculate a reduction in Husband's alimony as set forth at paragraph 10(e) of the Property Settlement Agreement and in the Order of this Court dated July 17, 2003. -8- i.'.' . ~ ' I' i; : ]~~- , _=:1'"_1_' - .'n _,"<' _~ ~ - .'-" ,-o".~,,=__,_,___,~_ ,_ - . ~"- .- ~""'.," ~, ; "~,,I ...." ",- 00-2123 CIVIL TERM The fallacy in this argument is that the marital residence was not appraised or was its value set in the Property Settlement Agreement. Therefore, its value is what it was actually worth when the Agreement was signed. Husband took his chances as to what the value was just as wife did with husband's business interests which were not appraised or a value set in their Agreement. We know what the market value of the property was approximately three weeks after the Agreement was signed when it sold for $338,000. It could hardly have been worth less three weeks earlier. Accordingly, wife received no windfall when it was sold. For the foregoing reasons, the following order is entered. ORDER OF COURT AND NOW, this '"'2...~ day of April, 2005, the petition of Michael D. Reed for a reduction in alimony, IS DENIED. By the Ceuit, /' Samuel L. Andes, Esquire For Plaintiff \ John J. Connelly, Esquire For Defendant :sal -9- I "'--'1---' ~ ) " ',I