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HomeMy WebLinkAbout06-12-06 (3) REV.1&OO EX ""11-00) * w ~ :.:<(111 0&::': wlLO :z:~g OlLaI lL <( COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE DEPT, 280601 HARRISBURG. PA 17128-0601 REV.1500 INHERITANCE TAX RETURN RESIDENT DECEDENT OFFICIAL USE ONLY FILE NUMBER II 2006 COUNTY CODE YEAR SOCIAL SECURITY NUMBER 0238 NUMBER I- Z W C W o w c DECEDENT'S NAME (LAST, FIRST, AND MIDDLE INITIAL) Durnan, Joseph H DATE OF DEATH (MM-DD-YEAR) THIS RETURN MUST BE FILED IN DUPLICATE WITH THE 057 -07 -8284 DATE OF BIRTH (MM-DD-YEAR) 01-31-2006 02-05-1906 REGISTER OF WILLS SOCIAL SECURITY NUMBER (IF APPLICABLE) SURVIVING SPOUSE'S NAME ( LAST, FIRST AND MIDDLE INITIAL) [!] 1. Original Return o 4. Limited Estate [!] 6. Decedent Died Testate (Attach copy of Will) o 9. Litigation Proceeds Received o o [!] o o 3. Remainder Retum (date of death prior to 12-13-82) o 5. Federal Estate Tax Return Required o 8. Total Number of Safe Deposit Boxes o 11. Election to tax under Sec. 9113(A) (Attach Sch 0) 2. Supplemental Return 4a. Future Interest Compromise (date of death after 12-12-82) 7. Decedent Maintained a Living Trust (Attach copy of Trust) 10 Spousal Poverty Credit (date of death between . 12-31.91 and 1-1-{l5) ~ z w c z o lL III W Ix: Ill: o o COMPLETE MAiliNG ADDRESS 301 MARKET STREET POBOX 109 LEMOYNE, PA 17043 (1 ) None (2) None (3) None (4) None (5) 5,539.74 (6) None (7) 259,973.49 (8) (9) 13,594.14 (10) 8,853.72 265,513.23 NAME EDMUND G. MYERS FIRM NAME (If appiceble) Johnson Duffie Stewart & Weidner TELEPHONE NUMBER (717) 761-4540 OFFICIAL USE ONLY 1. Real Estate (Schedule A) 2. Stocks and Bonds (Schedule B) 3. Closely Held Corporation, Partnership or Sole-Proprietorship z o i= ~ ::::l l- ii: 011( o w a: 4. Mortgages & Notes Receivable (Schedule D) 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) 6. Jointly Owned Property (Schedule F) o Separate Billing Requested 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G or L) 0 Separate Billing Requested 8. Total Gross Assets (total Lines 1-7) 9. Funeral Expenses & Administrative Costs (Schedule H) ~ ',.J -, r~".") c"'') L~) l'; 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) 11. Total Deductions (total Lines 9 & 10) (11) 22,447.86 243,065.37 0.00 12. Net Value of Estate (Line 8 minus Line 11) (12) 13. Charitable and Govemmental Bequests/See 9113 Trusts for which an election to tax has not been made (Schedule J) 14. Net Value Subjectto Tax (Line 12 minus Line 13) (13) (14) 243,065.37 SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES 15.Amount of Line 14 taxable at the spousal tax rate, 0.00 x .00 (15) or transfers under Sec. 9116(a)(1.2) z 0 .045 (16) i= 16.Amount of Line 14 taxable at lineal rate 243,065.37 x 011( I- ::::l ll.. 17. Amount of Line 14 taxable at sibling rate 0.00 x .12 (17) == 0 0 18. Amount of Line 14 taxable at collateral rate 0.00 x .15 (18) x ~ 19. Tax Due (19) 0.00 10,937.94 0.00 0.00 10,937.94 CHECK HERE IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT. Copyright 2002 form software only The Lackner Group, Inc. Form REV-1500 EX (Rev. 6-00' 'cy Decedent's Complete Address: STREET ADDRESS 303 Messiah Circle CITY Mechanicsburg I STATE PA I ZIP 17055 Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount 8,000.00 421.05 Total Credits (A + B + C) 3. Interest/Penalty if applicable D. Interest E. Penalty TotallnterestlPenalty (D + E) (3) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. (4) Check box on Page 1 Line 20 to request a refund 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) A. Enter the interest on the tax due. (5A) B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (5B) Make Check Payable to: REGISTER OF WILLS, AGENT (1 ) 10,937.94 (2) 8,421.05 2,516.89 2,516.89 PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred;.................................................................................. 0 [!] b. retain the right to designate who shall use the property transferred or its income;.................................... 0 [!] c. retain a reversionary interest; or.................................................................................................................. 0 [!] d. receive the promise for life of either payments, benefits or care?............................................................. 0 [!] 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration?............... ............................................. .......................................................... 0 [!] 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death?......... 0 [!] 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? .................................. ... ................. ....................................... ......... ........ ........ [!] 0 IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. Under penatties of pe~ury. I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete. Declaration of preparer other than the personal representative is based on all information of which preparer has any knowledge. SIGNATURE OF PERSON RESPONSIBLE FOR FILING RETURN ADDRESS Ma Alice Cassidy ~~ SIGNATURE OF PE ON RESPONSIBLE FOR FILING RETURN 25 Conway Drive Mechanicsburg, PA 17055 ADDRESS DATE ~~- SIGNATURE OF PRE PARER OTHER THAN REPRESENTATIVE ED D G. MYERS fb ADDRESS DATE Johnson Duffie Stewart & Weidner 301 Market Street Camp Hill, PA 17011 0(ffo('" For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3% [72 P,S. ~9116 (a) (1.1) (i)]. For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the Sl .. - -~^""A is 0% [72 P.S. ~9116 (a) (1.1) (ii)]. The statute does not exemDt a transfer to a surviving spouse from tax, and the statutory requ of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1, 2000: The tax rate imposed on the net value of transfers from a deceased child twenty-one years of age or younger at death to natural parent, an adoptive parent, or a stepparent of the child is 0% [72 P.S. ~9116 (a) (1.2)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is 4.5%, except ~9116 1.2) [72 P.S. ~9116 (a) (1 )]. The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12% [72 P .5. ~9116 (a) defined under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blo 4. ..6.:>...... RiA.. I~J ~r~ rk. ""-1>-.. - fJlrPJ) f!r' Rev-16G8 EX+ (1-'8) . SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT Durnan, Joseph H FILE NUMBER 21-2006-0238 ESTATE OF Include the proceeds of litigation and the date the proceeds were received by the estate. All property jolnUy-owned with the right of survivorship must be disclosed on schedule f. ITEM NUMBER DESCRIPTION 1 PNC Bank Checking Account No. 50-0459-6801 VALUE AT DATE OF DEATH 5.539.74 TOTAL (Also enter on Line 5, Recapitulation) 5.539.74 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule E (Rev. 6-98) Rev-1610 EX+ (6-88) . SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY COMMONWEALTH OF PENNSYlVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT Durnan, Joseph H FILE NUMBER 21-2006-0238 ESTATE OF This schedule must be completed and filed Wthe answer to any of questions 1 through 4 on the reverse side of the REV-1500 COVER SHEET is yes. ITEM ION OF -", DATE OF DEATH % OF DECO'S EXCLUSION TAXABLE NUMBER INCLUDE NAME OF TRANSFEREE, THEIR RELATIONSHIP TO DECEDENT AND VALUE OF ASSET INTEREST (IF APPLICABLE) VALUE THE DATE OF TRANSFER. ATTACH A COPY OF THE DEED FOR REAL ESTATE. Revocable Trust Agreement dated November 18, 1997 by Joseph Durnan, Grantor - Valuation as of Dateof Death is attached to this Return 1 9,330.739 shares of Blackrock Government 100,771.98 100.771.98 Income Fund B 2 18,734 shares of First TR SR & LN & HI 2 CA 158,489.64 158,489.64 3 Money Market Account No. 1993-0474 711.87 711.87 TOTAL (Also enter on Line 7, Recapitulation) 259,973.49 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule G (Rev. 6-98) REV.1151 EX+ (12-.8) *' SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT Durnan, Joseph H Debts of decedent must be reported on Schedule I. FILE NUMBER 21-2006-0238 ESTATE OF ITEM DESCRIPTION AMOUNT NUMBER A. FUNERAL EXPENSES: See continuation schedule(s) attached 8,269.94 B. ADMINISTRATIVE COSTS: 1. Personal Representative's Commissions Social Security Number(s) I EIN Number of Personal Representative(s): Street Address City State Zip - Year(s) Commission paid 2. Attomey's Fees Johnson Duffie Stewart & Weidner 5,000.00 3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Street Address City State Zip Relationship of Claimant to Decedent 4. Probate Fees 83.00 5. Accountant's Fees 6. Tax Retum Preparer's Fees 7. Other Administrative Costs 241.20 See continuation schedule(s) attached TOTAL (Also enter on line 9, Recapitulation) 13,594.14 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H (Rev. 6-98) Rev.1602 EX+ (8-88) . SCHEDULE H.A FUNERAL EXPENSES continued COMMONWEALTH OF PENNSYlVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Durnan, Joseph H FILE NUMBER 21-2006-0238 ITEM NUMBER DESCRIPTION AMOUNT 1 Holy Rood Cemetery 55.00 2 Malpezzi Funeral Home 8.214.94 Subtotal 8.269.94 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H-A (Rev. 6-98) Rev-1602 EX+ (6-88) *' SCHEDULE H.B7 OTHER ADMINISTRATIVE COSTS continued COMMONWEALTH OF PENNSYlVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT Durnan, Joseph H FILE NUMBER 21-2006-0238 ESTATE OF ITEM NUMBER DESCRIPTION AMOUNT 1 Cumberland County Register of Wills Office - Filing Fees for Inheritance Tax Return ($15.00) and Inventory ($15.00) 30.00 2 Cumberland Law Journal - Notice of Estate Administration 75.00 3 The Patriot News - Notice of Estate Administration 136.20 Subtotal 241.20 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H-B7 (Rev. 6-98) R.Y-1&12 EX+ (6-118) . SCHEDULE I DEBTS OF DECEDENT, MORTGAGE LIABILITIES, & LIENS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT Durnan, Joseph H FILE NUMBER 21-2006-0238 ESTATE OF Includ. unrelmbursed m.dlcl' .xp.n.... ITEM NUMBER DESCRIPTION 1 A. Ottavino Corp. VALUE AT DATE OF DEATH 350.00 2 Capital Area Health Association 20.10 3 Central PA Pulmonary 5.35 4 CoCo's Pizza 89.60 5 Daniel F. Cassidy 848.98 6 Elizabeth Howerton 192.02 7 Internal Revenue Service - 2005 Federal Taxes 1.065.00 8 J. Richard Durnan 250.00 9 Messiah Village 3,131.60 10 Messiah Village 1,477.34 11 Moffet Heart & Vascular 18.54 12 Pennsylvania Department of Revenue - 2005 State Income Taxes 315.00 13 U.S Treasury - 2005 Federal Income Tax Return 1,065.00 14 Verizon Telephone 25.19 TOTAL (Also enter on Line 10, Recapitulation) 8,853.72 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule I (Rev. 6-98) REV-1613 EX+ (9-00) ESTATE OF NUMBER I. 1 2 3 4 5 . SCHEDULE .. BENEFICIARIES COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT Durnan, Joseph H NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY TAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under Sec. 9116(a)(1.2)] FILE NUMBER 21-2006-0238 SHARE OF ESTATE AMOUNT OF ESTATE (Words) ($$$) RELATIONSHIP TO DECEDENT Do Not List Trustee's) Mary Alice Cassidy 25 Conway Drive Mechanicsburg, PA 17055 Daughter 1/5th of residue of estate J. Richard Durnan 3661 24th Place W #405 Seattle, WA 98199 Son 1/5th of residue of estate Paul H. Durnan 85 South Marion Place Rockville Centre, NY 11570 Son 1/5th of residue of estate R. Emmett Durnan 4900 Neblina Drive Carlsbad, CA 92008 Son 1/5th of residue of estate Elizabeth Durnan-Howerton 6515 Brawner Street Me Lean, VA 22101 Daughter 1/5th of residue of estate Total Enter dollar amounts for distributions shown above on lines 15 through 18, as appropriate, on Rev 1500 cover sheet II. NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS TOTAL OF PART 11- ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET 0.00 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule J (Rev. 6-98) ESTATE OF JOSEPH H. DURNAN SCHEDULE OF EXHIBITS EXHIBIT A Last will & Testament of Joseph H Durnan signed on October 20th, 1998. EXHIBIT B Revocable Trust Agreement dates November 18th, 1997 by Joseph H Durnan, Grantor EXHIBIT C Amendment to Revocable Trust Agreement dates November 18th, 1997 by Joseph H Durnan, Grantor dated October 20th, 1998. EXHIBIT D PNC Investments Valuationfor Trust as of Date of Death EXHIBIT A ~, \_~ ""'> <-', mast mill nUll w.estnm.eut of JOSEPH H. DURNAN I, JOSEPH H. DURNAN, of Upper Allen Township, Cumberland County, Pennsylvania, being of sound and disposing mind, memory and understanding, do hereby make, publish and declare this as and for my Last Will and Testament, hereby revoking and making void any and all Wills or Codicils at any time heretofore made by me. ARTICLE I I direct the payment of my legally enforceable debts and expenses of my last illness and funeral from my Estate as soon after my death as conveniently may be done. ARTICLE IT I give and bequeath my household and personal effects and other tangible personalty of like nature (not including cash or securities), together with any existing insurance thereon, unto those of my children, J. RICHARD DURNAN, MARY ALICE CASSIDY, PAUL H. DURNAN, ELIZABETH DURNAN - HOWERTON, and R. EMMETT DURNAN, who survive me, to be divided among them as they may agree, and in the absence of such agreement, I direct that my Executor or Successor to determine the manner and method of distribution of same. ARTICLE ill I give, devise and bequeath all the rest, residue and remainder of my estate, of whatsoever nature and wheresoever situate, unto the then-acting trustee of my Revocable Trust Agreement dated November 18, 1997, amended Dcl3i;JJv W, 1998, and any other amendments thereto or substitutions therefore, in Trust, to be administered by said Trustees under the provisions of said Trust Agreement. If no such agreement is in effect at the time of my death, I give, devise and bequeath all the rest, residue and remainder of my estate, unto MARY ALICE CASSIDY, and should she not then be living or fail to qualify or cease to so act, then unto ELIZABETH HOWERTON, as Trustee under and subject to the terms and conditions of a Trust, which terms and conditions shall be exactly the same as those specified in the aforesaid Trust Agreement, as amended, as it existed at the time of the execution of this Will or of the last codicil hereto, with like effect as if those terms and conditions were set forth and incorporated herein verbatim. ARTICLE IV I name, constitute and appoint my daughter, MARY ALICE CASSIDY, Executrix of this my Last Will and Testament. Should my daughter, MARY ALICE CASSIDY, fail to qualify or cease to so act, then I name the first of my other children, in the following order, who qualifies as alternate Executor (Executrix) of this my Last Will and Testament: A. ELIZABETH DURNAN - HOWERTON; B. J. RICHARD DURNAN; C. PAULH.DURNAN;and D. R. EMMETT DURNAN. I direct that none of the fiduciaries named herein shall be required to post bond for the faithful administration of the duties required in any jurisdiction. ARTICLE V My Executrix and Trustee (hereafter Fiduciaries) shall have the following powers in addition to those vested in them by law or by other provisions of this Will applicable to all property, whether principal or income, including property held for minors, exercisable without court approval and effective until actual distribution of all property: A. To retain as an inves1ment any and all property, real and personal, owned by me at my death. 2 B. To invest and reinvest, including principal and accumulated income, in stocks, bonds, mortgages, securities or other property, real and personal, without being limited to the classes of securities or investments in which fiduciaries are authorized by law to invest. C. To sell any and all real estate held as an asset of my estate at such times, at public or private sale, for such prices and upon such terms as shall be deemed advisable, and to make, execute and deliver any deed or deeds therefor, conveying title thereto in fee simple absolute or for any lesser estate, to any purchaser or purchasers. D. To sell, exchange, lease, encumber, option or otherwise dispose of all or any portion of my estate in such manner and upon such terms and conditions as shall be deemed advisable and to make, execute and deliver deeds, mortgages, leases, assignments and other documents necessary to effect any of the powers granted herein. E. To make distribution of my estate to any person entitled thereto in kind, in cash or partly in kind and partly in cash, as shall be deemed advisable, and to this end the allocation of assets in kind shall be at the sole discretion of my Fiduciaries. F. To register or carry any investments held hereunder in my Fiduciary's own name or in the name of a nominee or nominees. All such investments shall be designated upon the records of my Fiduciaries so that the estate to which the investment belongs shall appear clearly at all times. G. To vote by person or proxy any and all stock held in my estate and to participate in any reorganization or merger of companies or corporations whose stock is so held. H. To make such elections, decisions, concessions and settlements in connection with all income, estate, inheritance, gift, generation skipping or other tax refunds and the payment of such taxes, without obligation to adjust the distributive share of any person thereby affected. L To compromise, arbitrate or abandon any claim or controversy without court approval. 3 ,,- . ._"..~, ".".,~"",,,,,,~,,"..,..=-,::-..,.,,.~. ARTICLE VI Except as otherwise provided in the Trust Agreement referred in Article ill, I direct my Executrix to payout of the principal of my residuary estate all federal estate, state inheritance and other death taxes, including interest and penalties, imposed upon or with respect to my estate or any property in which I may have a taxable interest, including any property not forming a part of my testamentary estate but included in my gross estate for death tax purposes, except any property over which I have a taxable power of appointment, at such time and in such manner as my Executrix at her sole discretion deems advisable, and no such taxes or any portion thereof so paid shall be collected from or paid by any other person, persons or corporations by way of reimbursement, proration, apportionment or otherwise. IN WITNESS WHEREOF, I have hereunto set my hand and seal to this, my Last Will and Testament, this2D~y of O~ ,1998. ~J-e~/'I ~~EAL) JO~H HtbURNAN Signed, sealed, published and declared by the above-named Testator, as and for his Last Will and Testament, in the presence of us, who at his request, in his presence and in the presence of each other, have hereunto subscribed our names as witnesses. ~~ ~//#~ 4 ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND SS. We, JOSEPHH. DURNAN,r.Jn\.LfdG. ~~and ~\~h ~. ~.l-.i~, the Testator and the witnesses, respectively, whose names are signed to the attached or foregoing instrument, being first duly sworn, do hereby declare to the undersigned authority that the Testator signed and executed the instrument as his Last Will and Testament and that he had signed willingly and that he executed it as his free and voluntary act for the purposes therein expressed, and that each of the witnesses, in the presence and hearing of the Testator, signed this Last Will and Testament as witness and that to the best of hislher lmowledge the Testator was at that time eighteen (18) years of age or older, of sound mind and under no constraint or undue influence. ,.1 ;J //}. ~/41/- ~h,~ JQSEPH . DURNAN Wi~~ ~#// Subscribed, sworn to and aclmowledged before me by JOSEPH H. DURNAN, Testator, and EtlN\.L).rd e,. ('{lu\~ and ~~ph +4 . vU~-\~h+) ~R.. , witnesses, this /llJ'1-J.-l.day of ~bGr , 1998. D-wcY !I~ Notary Public My Commission Expires: 5 NOTARIAL SEAL DAWN L MAYKO, ~ Public Lemoyne Borough Cumberland Co. My CoInmlssion expIres Mar. 19,2001 ;J J-I () ~€cIf REVOCABLE TRUST AGREEMENT DATED November ~, 1997 BY JOSEPH B. DORNAN, AS GRANTOR This is a TRUST AGREEMENT made this 1'5 day of November, 1997, between JOSEPH H. DURNAN, residing at 36 Intervale Street, Rockville Centre, New York 11570, as Grantor (hereinafter referred to as "Grantor"), and PAUL H. DURNAN, residing at 84 South Marion Place, Rockville Centre, New York 11570 and JOSEPH H. DURNAN, residing at 36 Intervale Street, Rockville Centre, New York 11570, as Trustee (hereinafter referred to as "Trustee" or "the Trustee") . ARTICLE I ORIGINAL TRUST ESTATE Grantor transfers and assigns to the Trustee all his right, title, and interest in the assets listed on Schedule A attached to this agreement (these assets, together with any additional assets, being referred to as the "Trust Estate"). The Trustee acknowledge receipt of the Trust Estate and agree to hold and administer all assets in accordance with the terms of this agreement, IN TRUST for the uses and purposes and subject to the provisions and conditions hereinafter set forth. This is a made thi s ..J...B.- this agreement REVOCABLE TRUST AGREEMENT DATED November~, 1997 BY JOSEPH R. DURRAN, AS GRANTOR residing at ntervale Street, Rockville Centre, New as Grantor ereinafter referred to as "Grantor"), DURNAN , 13.. ~litJtQB:-,;,. ~, Rockville and JOSEPH H. DURNAN, residing at 36 Intervale Str et, Rockv' Ie Centre, New York 11570, as Trustee (hereinafter ref err d s "Trustee" or "the Trustee") . Grantor transfers a o the Trustee all his right, title, and interest in Schedule A attached to any additional assets, being referred s the "Trust Estate"). The Trustee acknowledge assets in the terms of this a eement, IN TRUST for all rust Estate and agree to the uses purposes and subject to the provi 'ons and conditions ,/ ARTICLE II ADDITIONAL PROPERTY subject to acceptance by the Trustee, Grantor or any other person from time to time may add cash, securities, insurance policies, or any other assets to the Trust Estate by deed, gift or will. The additional assets will be held, invested, administered, and distributed according to the terms of this agreement. Said additions shall be listed in a Rider similar in form to Schedule "B" attached to this Trust Agreement. ARTICLE III RIGHTS RESERVED BY GRANTOR A. Alteration. Revocation or Amendment. Grantor reserves the right to alter, amend, or revoke this agreement, at any time and from time to time, without the consent of the Trustee or any person, by giving written notice to Trustee to that effect. Notwithstanding the above, the duties, responsibilities, and rate of compensation of Trustee may not be modified without Trustee's written consent. B. Power OVer Trust Assets. Except as otherwise provided in paragraph C below, Grantor also reserves the right to require changes in investments and to withdraw any or all assets of the Trust Estate. C. Suspension of Grantor's Ri9hts. If, at any time during the continuance of this Trust, Grantor is adjudicated incompetent 2 by a court of appropriate jurisdiction, h~.r personal powers of alteration, amendment, revocation, and right to withdraw income or assets will be suspended during that incompetency. If, at any time a successor Trustee or Co-Trustee has a reasonable basis to believe that Grantor is suffering from any mental or physical incapacity or incompetency that would affect such Grantor's judgment concerning the assets of the Trust Estate, said Trustee shall gi ve such Grantor written notice to that effect, and such Grantor's right to alter, amend or revoke this Trust or to demand paYments from the Trust Estate will be suspended until the issue of such Grantor's competence is determined by a court of appropriate jurisdiction. In reasonably determining any incapacity or incompetency, a Co- Trustee, successor Co-Trustee or a successor Trustee may rely conclusively upon the opinion of a medical doctor retained by said 'Trustee to make such a determination. If a Grantor's powers of alteration, amendment, revocation, and withdrawal are suspended as provided above, such Grantor's duties and powers as Trustee will also be suspended until those powers are restored. D. Personal Nature of Reserved Rights. No person (including a guardian or conservator of the Grantor) other than Grantor personally may exercise any of the rights reserved to Grantor by the provisions of this ARTICLE. 3 ARTICLE IV ~HINISTRATION DURING C:RANTOR I S LIFETIHE During Grantor's lifetime, the Trustee shall hold, manage, invest, and reinvest all assets of the Trust Estate and shall collect and receive the interest, income, and profits therefrom, upon the following terms and for the following purposes: A. Payment to Grantor. The Trustee shall pay any part or all of the net income from the Trust Estate to Grantor, or to other persons designated by Grantor, that the Grantor may from time to time request. In addition, the Trustee shall pay to Grantor any part or all of the principal of the Trust Estate that Grantor requests in writing delivered to the Trustee prior to Grantor's death. B. ~rantor Incqpacity or Incompetency. If Grantor becomes incapacitated or incompetent at any time so that his personal powers of alteration, amendment, revocation, and withdrawal are suspended under the conditions set forth in ARTICLE THREE, then, for as long as that incapacity or incompetency continues, the Co- Trustee, successor Co-Trustee or successor Trustee (as the case may be) shall pay to or apply for the benefit of such Grantor any sums from the income or principal of the Trust Estate that said Co- Trustee, successor Co-Trustee or successor Trustee, in their absolute discretion, deem appropriate for such Grantor's care, support, and maintenance and for any other purposes that said Co- 4 Trustee, successor Co-Trustee or successor Trustee consider necessary to provide for and to manage the everyday needs and requirements of Grantor, taking into consideration the standard of living to which he is accustomed at that time. These paYments may include direct paYments to any landlord, hotelkeeper or hospital including additional charges for private room; for services rendered in connection with any dental, medical, and nursing care, including private duty nurses or home health aides; for services rendered in furnishing food, clothing, transportation, legal or accounting services, or any other required services, including, but not limited to, hiring a geriatric case manager, provided the Co-Trustee, successor Co-Trustee or Successor Trustees receive proper substantiation by those performing the services; and for the preparation of tax returns and paYment of any and all taxes which Grantor may be. obligated to pay under any applicable state or federal laws. PaYment or use of any portion of the income or principal of the Trust Estate for any of the purposes expressed above is an appropriate use by said Co-Trustee, successor Co-Trustee or Successor Trustees of the Trust corpus and shall not be subject to challenge by any person or entity. C. Accumulation. Any accumulated net income is incorporated into the principal of this trust, to administered, and distributed according to all of conditions, and limitations. to be held, be its terms, 5 ARTICLE V ADMINISTRATION AFTER GRANTOR'S DEATH Upon Grantor's death, the Trustee shall continue to hold the remaining Trust Estate and may make distributions from principal and accumulated income as follows: A. Transactions with Grantor's Estate. The Trus tee, in their absolute discretion and whether or not they also serve as personal representative of Grantor's estate, may purchase on behalf of the Trust any property belonging to that estate or make any loans to the personal representative of that estate to provide liquidity for payment of any claims, taxes, administration expenses, or other indebtedness of Grantor's estate. Any purchase or loan will be made on the terms and conditions that the Truste~, in their absolute discretion, deem appropriate, provided that any purchase of assets must be for adequate consideration in money or money's worth, and any loan must be made only with adequate interest and security. The Trustee will not be liable for any loss to the Trust Estate caused by its acting in accordance with this article, except for losses occasioned by its own gross neglect or willful misconduct. B. Payment of E~enses and Taxes. To the extent that, in the T~stee' absolute discretion, it is inadvisable to use some or all of the residuary assets of Grantor's estate to pay any or all administration expenses of Grantor's estate, the expenses of his last illness and burial, and any or all state and federal estate, 6 inheritance, or transfer taxes payable by reason of his death, including any related interest and penalties, but excluding any taxes assessed or imposed under Chapter 13, Subtitle B of the Internal Revenue Code of 1986, as amended (referred to in this agreement as "the Codell) or to the extent that Grantor's residuary ("' o l) Yy,C estate is insufficient to pay those amounts, the Trustee may rely on a written statement signed by Grantor's personal representative i'\,\' ~ if;:"': as to the adequacy of the assets of Grantor's residuary estate to pay those expenses, costs and taxes. The Trustee may rely on a written statement signed by Grantor's personal representative as to the adequacy of the assets of Grantor's residuary estate to pay those expenses, costs and taxes. Notwithstanding any provision of this Trust Agreement to the contrary, the Trustee are specifically directed to use in paYment of all applicable federal estate taxes any United States Treasury Bonds that are redeemable at par in paYment of federal estate tax. C. Administration and Distribution of Trust Estate. After making provision for the paYments described above, the Trustee shall administer and distribute the remaining Trust Estate as provided below. ARTICLE VI REMAINING TRUST ESTATE The Trustee shall distribute the remaining Trust Estate as follows: 7 " A. Except as otherwise specifically disposed of all of the Grantor's household property and personal effects of every kind, including without limitation all of Grantor I s furniture, furnishings, clothing, jewelry and objects of art shall be distributed free of trust to( my issue, then living, per stirpes. ~\.' (: ' ( ,./-'.' B. I give all the rest, residue and remainder of my property \ and estate, both real and personal, of every kind and whereve~ located, to which I shall be in any manner entitled at the time of w#- J) ~ ... J ('I""~A~,t 1"'/- I i o /"(1....,'.. [.i r71"1> my death (collectively referred to as my "residuary estate") as follows: a. One third (1/3) to my wife, MARY E. DURNAN, if she . lJN, ~ I r-. (4 ~,,,{',, vvvf ./<'''''-1/r.l surv~ ves me. b. Two thirds (2/3) to my issue, then living, per stirpes. Any share to which my wife, MARY E. DURNAN(hereinafter referred to as the "beneficiary" or "said beneficiary"), shall be entitled shall be held, in Trust, by my Trustee, hereinafter named, and shall be administered as follows: (a) My Trustee shall hold such property and invest and reinvest the same and pay to, or apply for the benefit of, the beneficiary so much of the net income and/or principal of the Trust, whether the whole or a lesser amount, as my Trustee, in said Trustee's sole and absolute discretion, shall determine. Any income not utilized shalflbe accumulated and shall be added to the principal of the trust: /J " (~ I ~\(I ,nl"lu{A,l (b) In exercising his discret!9n under this ARTICLE, my Trustee is authorized to provide for the needs of the beneficiary, over and above basic maintenance, support, medical, dental, psychiatric and psychological care, provided by or paid for by any local, state or federal government or agency or department thereof. To this end, my Trustee is authorized, but not required, to provide such 8 . .~" A- :IV f'L( "'.1 ! r r (. ( t~ ( ;~:~..~ i-;~- resources as will contribute to and make the beneficiary's life as pleasant, comfortable and happy as feasible. Nothing herein shall preclude my Trustee from purchasing those services and items which promote the beneficiary's happiness, welfare and development, including, but not limited to, vacation and recreation trips away from said beneficiary's place of residence, expenses for a traveling companion, entertainment expenses, clothing and transportation costs. (c) It is my intent that my Trustee use the principal and income of the trust for the beneficiary, to promote said beneficiary's happiness, welfare and development without in any way reducing the provision of services or financial assistance for basic maintenance, support, medical, dental, psychiatric or psychological care the beneficiary receives or may receive without charge from any local, state, or federal government or agency or department thereof, and without using any portion of the income or principal of the trust to reimburse any local, state or federal government or agency or department thereof for such maintenance, support or care received by the beneficiary. (d) It is my intent that neither the income nor principal of the trust is to be considered the beneficiary's income or assets for any purpose, including the determination of income or assets as stated in any rules and regulations promulgated by any local, state or federal government or agency or department thereof. I intend for the trust funds to serve as a vehicle for increasing the beneficiary's well-being and not to serve as a substitute for benefits otherwise available to said beneficiary or for said beneficiary's benefit. (e) Under no circumstances shall my Trustee exercise his discretion to utilize funds for the payment of such services that would otherwise be borne by any publicly funded program or by an institution. '/ ..-- --..------ -----\ (f) Trust principal shall not be subject to any Court directed invasion pursuant to the provisions of the New York Estates, Powers / and Trusts Law Section 7-1.6, or any other statute of New York or any other state of dthEL'United_Bta-tes-d-oE--Arner-ica.---- --- (g) .In the event of a lawful determination by a Court or agency of competent authority that the income or principal of the trust is liable for basic maintenance, support, medical, dental, psychiatric or psychological care for the beneficiary that would otherwise be provided by any local, state or federal government or any agency or department thereof, said trust shall terminate, and my Trustee shall pay the then principal of the trust, together with any accumulated income, to J. RICHARD DURNAN, ALICE CASSIDY, PAUL H. 9 -'v (Tj" , , ~( ~! h'" \-/ ,,,/ f.I / DURNAN, ELIZABETH HOWERTON and R. EMMETT DURNAN~~'- .---- t (h) Upon the death of the beneficiary, I direct that the undistributed principal and any accrued income shall be distributed to my issue, then living, per stirpes. f----- ~ ~...~ S-f'r-v ',' C( Iv,'\ ARTICLE VII SURVIVAL PROVISION If any beneficiary named in this agreement fails to survive Grantor by six months, that person is to be deemed to have predeceased Grantor for the purpose of this agreement. ARTICLE VIII DONEE OF A POWER DORING MINORITY / W~ever any property vests pursuant to the provisions of this /. ; /, s ' Trust( iJ:r1a person under the age of twenty-one (21) years, a person \ -J acting hereunder as Trustee shall have the right to hold such property as donee of a power during minority with the same rights, powers, authority, discretion and immunities, and subject to the same duties, as are conferred or imposed upon such fiduciary in this Trust. If such property is so held, said donee shall invest and reinvest such property for the benefit of such person under the age of twenty-one (21) years, shall receive the income therefrom and payor apply to or for the benefit of such person such part or all of the net income thereof and such part or all of such property 10 as said donee may, from time to time, in said donee's discretion, determine. Any undistributed property shall be distributed to such person at age twenty-one (21) years or, if he or she shall die before attaining age twenty-one (21) years, shall upon his or her death be distributed to his or her estate. Said donee shall be entitled to receive such compensation as said donee would be entitled to receive if said donee were holding the property as Trustee and shall not be required to render periodic accounts to any court. Any provisions in this ARTICLE notwithstanding, said donee may, instead of holding property distributable to a person under twenty-one (21) years under such power, distribute such property to a parent or guardian of such person under twenty-one (21) years, or to a custodian for such person under the Uniform Gifts to Minors Act (or similar statute) of any jurisdiction. The Trustee shall have full right, power and authority to select such custodian, who may be the Trustee. Any provision of this ARTICLE to the contrary notwithstanding, if not already distributed, all accrued and undistributed income and the entire principal of every Trust Estate then held hereunder shall be paid over and distributed outright and free of the Trust not later than the end of the day immediately preceding the expiration of twenty-one (21) years from and after the death of the last survivor of Grantor, Grantor's children and Grantor's ,- children's'issue living at the time of Grantor's death. Such 11 payment and distribution shall be made to the person or persons for whose benefit the Trust Estate or Estates respectively shall then be held hereunder. ARTICLE IX PROTECTION OF BENEFICIARIES No principal or income payable or to become payable pursuant to the provision of the Trust created by this Agreement shall be subject to anticipation, alienation or assignment by any beneficiary thereof or to attachment by or to the interference or control of any creditor of any such beneficiary or to be taken and/or reached by any legal or equitable process in satisfaction of any debt or liability of such beneficiary prior to the actual receipt of such principal or income by the beneficiary. ARTICLE X TRUSTEE SUCCESSION . Any Trustee may resign at any time by giving thirty (30) days written notice to Grantor and the beneficiary currently entitled to income, including the natural or legal guardians for said beneficiary (the "beneficiary" or "beneficiaries"). The notice will be sufficient if mailed to the beneficiary at that beneficiary's last known mailing address by certified mail, return receipt. Grantor may remove any Trustee by giving written notice to that Trustee. 12 During any period that Grantor's personal powers relative to the Trust are suspended as provided in ARTICLE THREE, and following 7 Grantor's death, (anci) PAUL H. DURNAN, will continue to serve as \. ./ Trustee. If PAUL H. DURNAN, Trustee resigns, fails, or ceases to serve as Trustee, then I appoint ALICE CASSIDY as Successor Trustee. If ALICE CASSIDY, Trustee refuses to serve, resign, fail, or cease to serve, then beneficiaries currently entitled to income (or their natural or legal guardians) may appoint a successor Trustee. If said beneficiaries (or their natural or legal guardians) do not appoint a successor within thirty (30) days of the death, refusal to serve, or notice of removal or resignation of successor Trustee, the terminating Trustee shall, or any beneficiary currently entitled to income (or his or her natural or legal guardian), may petition a court of competent jurisdiction to appoint a successor Trustee. A successor Trustee ~ire a terminating Trustee or his personal representative to re~~er a full ~nd__fi~~_~~~~,=-~ting. The successor Trustee will not be liable for any inconsistencies or irregularities in the administration of the trust by any prior Trustee, but will be responsible and accountable only for those assets under its control and custody. 13 rJ i{ ( tfJ! ARTICLE XI POWERS AND DUTIES OF THE Trustee A. The Grantor hereby confers upon the Trustee hereunder, with respect to the management and administration of any property, all of the powers conferred by Section 1.1-1.1 of the Estates, Powers and Trusts Law or comparable statute of the State of New York in effect during the life of this Trust, and, in addition thereto, the following discretionary powers without limitation by reason of specification: (i) To retain any such property, real and personal, including savings accounts, money market accounts, stocks, bonds and any other form of financial investment, without being limited to investments authorized Trust funds and without for diversification as to kind or amount. (ii) To buy or sell or otherwise dispose of property, real and personal, at public or private sale, for such consideration and upon such terms, including credit, as the Trustee shall deem advisable; and to grant options for the sale or disposition thereof for such period of time as the Trustee may deem advisable. (iii) To manage and lease real property for periods beginning presently or in the future, without regard to statutory restrictions on leasing. (iv) To deposit funds in the savings department of any 14 bank without limitation as to time or amount. (v) To borrow or lend money from or to any source, including the Trustee, and to pledge or mortgage any property for any purpose at reasonable terms. (vi) To delegate powers to agents or others to the extent permitted by law and to pay them for services and reimburse them for expenses, employ and pay compensation of accountants, custodians, social workers, geriatric care managers, legal and investment counsel and any and all other agents which, in the sole and absolute discretion of the Trustee, said Trustee may decide to employ. B. The Trustee shall keep accurate records showing all receipts and disbursements and other transactions involving the Trust Estate or Estates and shall furnish annually to each beneficiary currently entitled to income, (1) a statement of the receipts and disbursements affecting such beneficiary's interest in the Trust, and (2) a complete inventory of the Trust Estate then held for the benefit of such beneficiary. c. No person, firm or corporation dealing with the Trustee or a nominee of the Trustee or performing any act pursuant to action taken or order given by the Trustee or such nominee shall be obliged to inquire as to the propriety, validity or legality thereof hereunder, nor shall any such person be liable for the application of any money or other consideration paid to the Trustee or such nominee, but, instead, may rely upon any action taken by 15 the Trustee or such nominee pursuant to the powers and authorities conferred upon it under the provisions of this Trust in all respects as if the same were completely unlimited. No transfer agent or registrar of any security held hereunder shall be required to inquire as to the propriety, validity or legality of any transfer made by the Trustee or such nominee. D. The Co-Trustee may act severally. ARTICLE XII COMPENSATION AND BOND A. The Trustee hereunder shall be entitled to receive as compensation for their services the commissions provided by law, unless payment of such commissions shall be waived, and shall also be entitled to reimbursement for reasonable expenses said Trustee incur which are necessary in order to carry out their duties. B. The Trustee shall not be required to furnish a bond, undertaking or other security for the faithful performance of said Trustee' duties in any jurisdiction. C. The terms "Trustee" and "Trustee" shall include Co- Trustee, successor Co-Trustee, successor Trustee, or persons appointed as additional Trustee. ARTICLE XIII DECLARATION OF TRUST To maintain the confidentiality of the dispositive provisions 16 of this Trust, the Grantor has authorized and directed the Trustee to execute the Declaration of Trust annexed hereto and to deliver or record this Declaration when evidence of the Trust must be presented. ARTICLE XIV MISCELLANEOUS A. Whenever necessary or appropriate, the use herein of any gender shall be deemed to include the other genders and the use herein of either the singular or the plural shall be deemed to include the other. Headings are inserted solely for convenience of reference and shall not constitute part of this Trust nor affect its meaning. B. All questions relating to the validity and construction of this agreement, the determination of the share of any beneficiary, the dates, powers, authority and discretion of the Trustee, and all other matters arising in connection therewith, shall be governed by, and the Trust Estate shall be administered in (~ / accordance with, the laws of the State of New York. c. This agreement extends to and is----binding upon the personal representatives, successors, and assigns of Grantor and of Trustee. D. Four originals of this Trust Agreement have been executed simultaneously. 17 IN WITNESS WHEREOF, the parties hereto have hereunto set their respecti ve hands and seals, as of the day and year first above written. 6/~ IA- ~,. 'I/dt"1hfJA^-- EPH . DtJ'RNAN, Gran tor A~~ t-f /a{~zJh-- ~~~:. Trustee, PAUL H. DORNAN, Trustee STATE OF NEW YORK ss. : COUNTY OF NASSAU On this IS day of November 1997, before me personally came JOSEPH II. DlJRNAN, to me known and known to me to be the individual described in, and who executed, the foregoing instrument, and she did duly acknowledge to me that ~e e am .~ No ss. : EMILY F. FRANCHINA Notary Public, State of New York No 01.FR..4B55197 Qualified in ~~~u G9.!lnlY Commission Expires~~'11'1 (/ STATE OF NEW YORK COUNTY OF NASSAU On this I S day of November, 1997, before me personally came PAUL B. DORNAN, to me known and known to me to be the individual described in, and who executed, the foregoing ins nt, and he did duly acknowledge to me that he~t s me Notary Public EMILY F. FRANCHINA Notary Public, Stl'lte of New York No. O1-FR 4B55197 . Qualifiadin Nassa}J..<f~l}tJ9 Commission Expires ;!5f ac.., I 'I" . 18 ASSIGNMENT FOR VALUABLE CONSIDERATION, the undersigned does hereby assign, transfer, grant and set over to PAUL H. DORNAN and JOSEPH H. DORNAN, or their successors, as Trustee of ~ JOSEPH H. DURNAN REVOCABLE TRUST AGREEMENT, dated November ~, 1997, Grantor's furniture, furnishings, and household goods, including any similar interest in personal automobiles, jewelry, silver, books, pictures, works of art, paintings, and tangib~e personal property, currently located primarily at 36 Intervale Street, Rockville Centre, New York. Dated: )J;ved;>f2,( If 1997 Receipt of the above listed item(s) is hereby acknowledged by: Dated: !lJDW~4t:/~ /6/997 R/i)J~/, J *rustee T#V ~ 19 SCHEDULE A A Trust Agreement dated November /2?, 1997, between JOSEPH H. DURNAN, as Grantor, and PAUL H. DURNAN and JOSEPH H. DURNAN, as Co- Trustee, includes the following property: 1. Check # for $ dated , 1997 payable to PAUL H. DURNAN and JOSEPH H. DURRAN, as Co-T~tees of the REVOCABLE TRUST OF JOSEPH H. DORNAN DATED November ~, 1997. Receipt of the above listed item(s) is hereby acknowledged by: Dated: II/I 9/q 7 I 20 SCHEDULE B D A Trust Agreement dated November 11L-, 1997, between JOSEPH H. DURNAN, as Grantor, and PAUL H. DURNAN and JOSEPH H. DURNAN, as Co- Trustees, includes the following additional property: Receipt of the above listed item(s) is hereby acknowledged by: Dated: PAUL H. DORNAN JOSEPH H. DURNAN 21 011345-00001110.13.98/EGM/DLM/114665.1 (C~b9Jr AMENDMENT TO REVOCABLE TRUST AGREEMENT DATED NOVEMBER 18~ 1997 BY JOSEPH H. DURNAN. AS GRANTOR THIS AMENDMENT TO REVOCABLE TRUST AGREEMENT DATED NOVEMBER 18, 1997 BY JOSEPH A. DURNAN, AS GRANTOR is made this 'U~ day of D~ , 1998 between JOSEPH H. DURNAN, of Upper Allen Township, Cumberland County, Pennsylvania, (hereafter "Settlor"), and JOSEPH H. DURNAN, PAUL H. DURNAN, Rockville Center, New York, and MARY ALICE CASSIDY, Mechanicsburg, Pennsylvania (hereafter "Trustees" ) . WITNESSETH: WHEREAS, Settlor executed a Revocable Trust Agreement dated November 18, 1997 ("Agreement") with Paul H. Duman and Joseph H. Duman as Trustees, and the parties wish to amend the Agreement as permitted pursuant to Article ill thereof; WHEREAS, Paul H. Duman, Trustee, wishes to resign as Trustee, and Settlor wishes to substitute Mary Alice Cassidy as Successor Trustee which office she is willing to undertake; WHEREAS, Settlor and Trustees agree that all assets currently held in Trust pursuant to said Agreement shall continue to be held in Trust pursuant to the terms and conditions of the Agreement and this Amendment thereto; NOW THEREFORE IN CONSIDERATION of the mutual promises and covenants set forth herein, the Settlor and Trustees agree as follows: ITEM I-RECITALS. The recitals are incorporated herein. ITEM II- RESIGNATION OF PAUL H. DURNAN AS TRUSTEE AND APPOINTMENT OF MARY ALICE CASSIDY AS SUCCESSOR TRUSTEE. By execution of this Amendment, Paul H. Duman resigns from his office as Trustee and Mary Alice Cassidy accepts appointment as Successor Trustee, such resignation and appointment made and accepted by the parties without any written notice otherwise required by the Agreement. ITEM III - REVOCATION OF ARTICLES III THROUGH XIV. Articles ill through Article XIV of the Agreement are hereby revoked and in lieu thereof the following provisions are substituted: ARTICLE ill RIGHTS RESERVED BY SETTLOR A. Alteration. Revocation or Amendment. Settlor reserves the right to alter, amend or revoke this Agreement at any time and from time to time without the consent of the Trustee(s) or any person, by giving written notice thereof to the Trustees then serving. However, notwithstanding the foregoing, the duties, responsibilities and rate of compensation of Trustee(s) may not be modified without trustees' written consent. B. Power Over Trust Assets. Except as otherwise provided in Paragraph C, Settlor reserves the right to determine the nature and character of the Trust investments and to change the same from time to time. C. Sus.pension of Settlor's Riihts. If Settlor is adjudicated incompetent by a Court of appropriate jurisdiction, or if Settlor is incapacitated as that term is defined hereafter, Settlor's personal powers reserved in Paragraphs A and B hereof shall be suspended until such time as Settlor is adjudicated competent or the incapacity has ceased. ARTICLE IV ADMINISTRATION DURING LIFETIME OF SETTLOR A. Net Income. Trustees shall pay to or apply for the benefit of Settlor for and during his lifetime all of the net income from the Trust Estate in quarter-annual or other convenient installments. As much of the net income, if any, as Settlor may request shall be added to the principal and invested as such. B. Principal. Trustees shall pay to or apply for the benefit of Settlor, in addition to the net income, such amounts from the principal of the Trust Estate, up to the whole thereof, as Settlor may from time to time request. C. Incapacity of Settlor. If Settlor is incapacitated by reason of age, illness or any other cause, Trustees shall apply for the benefit of Settlor as much of the net income and principal as Trustees may from time to time deem advisable for the support of Settlor to maintain the standard of living to which he is accustomed. Any excess income shall be added to principal and invested as such. The term incapacity or incapacitated means mental or physical incapacity as determined by the written certifications of two persons duly licensed to practice medicine in the state in which Settlor is then present that each has examined Settlor and determined that Settlor is mentally or physically incapable of acting on his own behalf. The incapacity shall be deemed to cease upon similar certifications that the incapacity has ceased. ARTICLE V ADMINISTRATION AFTER DEATH OF SETTLOR A. Irrevocability. Upon and after the death of Settlor, this Agreement shall become irrevocable and shall not be altered or amended. B. Payments to Estate of Settlor. If upon the death of Settlor the Executor of his estate certifies to Trustees that the probate estate of Settlor is insufficient to pay the debts, pre-residuary bequests and expenses of administration, Trustees shall pay to the Executor such amount as the Executor certifies as being the deficiency, and Trustees shall be under no duty to inquire into the validity of the certification. After deducting Trust administration expenses payable after the death of Settlor, the remaining principal and any property received by Trustees from the estate of Settlor or from any other source shall constitute the Trust Estate and shall be held and distributed as provided in this Article. C. Personalty. Trustee shall distribute Settlor's household and personal effects and other tangible personalty of like nature unto those of Settlor's children who survive to be divided among them as they may agree, and in the absence of such agreement, Trustees are directed to determine the manner and method of distribution of same. 2 D. issue, per stirpes. Distribution. Trustee shall distribute the remaining Trust Estate unto Settlor's then-living E. Beneficiary Under 21. In the event that any beneficiary shall not have reached the age of twenty-one (21) years at the time for distribution of his or her share, distribution of said share may be made in the discretion of Trustees after considering the age and needs of the beneficiary, either directly to the beneficiary or to a Custodian under the Pennsylvania Uniform Transfers to Minors Act, 20 Pa. C.S.A S 5301 et seq., or the applicable Uniform Gifts to Minors Act or Uniform Transfers to Minors Act in the state of residence of such beneficiary as the case may be. The Trustees may designate as such Custodian any institution or person, including my Trustee, qualified to act as a Custodian for such beneficiary under such Act in effect at the time such distribution is made. A receipt for any payment or distribution so made shall be a full discharge therefor to Trustees, who shall not be responsible to see to, or be liable for, the application of such proceeds thereafter. ARTICLE VI ADMINISTRATIVE PROVISIONS A. Undistributed income on Termination of Beneficial Interest. Whenever the right of any beneficiary to payments from the net income or principal of the Trust Estate shall terminate, either by reason of death or other cause, any accrued or undistributed net income from the Trust Estate undistributed by the Trustees on the date of such tennination shall be held, administered, and distributed by the Trustees in the same manner as if such income had accrued and been received by the Trustees after the date such beneficiary's right to receive payments from the trust terminated. B. Spendthrift Provision. Except as otherwise expressly provided in this Agreement, no beneficiary of any Trust provided for this Agreement shall have any right, power, or authority to alienate, encumber, or hypothecate his or her interest in principal or income of such trust in any manner, nor shall such interest of any beneficiary be subject to claims of his or her creditors or liable to attachment, execution, or other process oflaw. C. Beneficiary Incapacity. If any beneficiary to whom the Trustees are directed to distribute any share of Trust principal is, in the opinion of the Trustees, incapable of properly managing his or her own affairs, his or her share shall vest in him or her indefeasibly, but the Trustees shall continue to hold such share until, in the opinion of the Trustees, no incapacity exists, with all the powers granted to them as Trustees herein and with authority to use both income and principal for the beneficiary's health, education, maintenance, and support. Payments may be made to the guardian of the beneficiary when the payments are made, without liability on the part of the Trustees to see to the application of said payments by the guardian. D. Distribution in Kind or in Cash. On any [mal or partial distribution of the assets of the Trust Estate and on any division of the assets of the Trust Estate into shares or partial shares the Trustees may distribute such assets in kind, may distribute undivided interests in such assets, or may sell all or any part of such assets and make distribution in cash or partly in cash and partly in kind. The decision of the Trustees, either prior to or on any division or distribution of such assets, as to what constitutes a proper division of such assets of the Trust Estate shall be binding on all persons in any manner interested in any Trust provided for in this Agreement. . ARTICLE VII POWERS OF TRUSTEES A. Retain Investments of Settlor. The Trustees are authorized to retain in the Trust for such time as they may deem advisable any property, received from the Settlor, whether or not such property is of the character 3 permitted by law for the investment of Trust funds, and to operate at the risk of the Trust Estate any business or property received from the Settlor. B. Control by Settlor. So long as the Settlor is a Trustee and is not incapacitated, the decision of the Settlor as Trustee shall prevail and be binding upon any Co-Trustee as to all matters concerning the Trust Estate, without any liability on the part of any Co-Trustee for such decision by the Settlor. The Settlor may resign as Trustee at any time by filing his written resignation with the remaining Trustee or Trustees, and shall be relieved of and discharged from all future duties as Co-Trustee. In the event of the death, resignation, or incapacity of the Settlor, all rights and powers of the Trustees shall vest in and be exercised only by the remaining Co-Trustee or Trustees or any successor Trustee. C. Mana~ement of Trust Pro..perty. The Trustees shall, with respect to any and all property which may at any time be held in Trust pursuant to this Agreement, whether such property constitutes principal or accumulated income of any Trust provided for this Agreement, have power, exercisable after consultation with and approved by the Settlor if acting as a Trustee, or if not, in the remaining or successor Trustee's discretion at any time and from time to time on such terms and in such manner as the Trustees may deem advisable, to: (a.) Sell, convey, exchange, convert, improve, repair, manage, operate, and control of such property . (b.) Lease for terms within or beyond the term of any Trust provided for in this Agreement and for any purpose, including exploration for and removal of gas, oil, and other minerals; and enter into any covenants and agreements relating to the property so lease or any improvements which may then or thereafter be erected on such property. (c.) Encumber or hypothecate for any Trust purpose by mortgage, pledge, or otherwise. (d.) Carry insurance of such kinds and in such amounts at the expense of the Trust as the Trustees may deem advisable. (e.) Commence or defend at the expense of the Trust such litigation with respect to any such Trust or any property of the Trust Estate as may be deemed advisable. (f.) Invest and reinvest the Trust funds in such property as the Trustee may deem advisable, whether or not of the character permitted by law for the investment of Trust funds. (g.) Vote and give proxies to vote any securities held by them in Trust pursuant to this Agreement, having voting rights. (h.) Pay any assessments or other charges levied on any stock or other security held in Trust pursuant to this Agreement. (i.) Exercise any subscription, conversion, or other rights or options which may at any time attach, belong, or be given to the holders of any stocks, bonds, securities, or other instruments held in Trust pursuant to this Agreement. (j.) Participate in any plans or proceedings for the foreclosures, reorganization, consolidation, merger, or liquidation of any corporation or organization that has issued securities held in trust pursuant to this Agreement, and incident to such participation to deposit securities with and transfer title of securities to any protective or other committee established to further or defeat any such plan or proceeding. 4 (k.) Enforce any mortgage or pledge held in Trust pursuant to this Agreement and at any sale under any such mortgage, or pledge to bid and purchase at the expense of any Trust provided for in this Agreement any property subject to such security instrument. (1.) Compromise, submit to arbitration, release with or without consideration, and otherwise adjust any claim in favor of or against any Trust provided for in this Agreement. (m.) Subject to any limitations expressly set forth in this Agreement and the faithful performance of their fiduciary obligations do all such acts, take all such proceedings, and exercise all such rights and privileges as could be done, taken, or exercised by an absolute owner of the Trust property. D. Power to Borrow Money. The Trustees shall have power to borrow money from any person, firm, or corporation for Trust administration or Trust business purposes only, on such terms and conditions as the Trustees may deem proper and to obligate the Trust to repay such borrowed money. E. Dealin~s with Settlor's Estate. The Trustees are authorized to purchase securities or other property from and to make loans and advancements from the Trust Estate with or without security to the Executor or other representatives of the Settlor's estate. F. Determination of Principal and Income. Except as otherwise specifically provided in this Agreement, the Trustees shall have full power and authority to determine, in their discretion, what shall constitute principal ofthe Trust Estate, gross income form the Trust Estate, and net income ofthe Trust Estate distributable under the terms of this Agreement. The determination of the Trustees as to what constitutes principal, gross income, or net income of the Trust Estate shall, except as may be otherwise expressly provided in this Agreement, be conclusive and binding on all persons in any manner interested in any Trust created or to be created pursuant to this Agreement. G. Taxes and EJ\penses of Trust. All property taxes, assessments, fees, charges, and other expenses incurred by the Trustees in the administration or protection of the Trust created by this Agreement, including the compensation of the Trustees provided for in this Agreement, shall be a charge on the Trust Estate and shall be paid by the Trustees prior to [mal distribution of the Trust Estate in full out of the principal or in full out of the income of the Trust Estate, or partially out of the principal and partially out of the income of the Trust Estate, in such manner and proportions as the Trustees may deem to be advisable. The determination of the Trustees to pay such expenses and charges from the principal or income of the Trust Estate or partially from each shall be conclusive and binding on all persons in any manner interested in any trust created by or pursuant to this Agreement. H. Death Taxes. The surviving or successor Trustee may, in his or her discretion, pay any or all estate, inheritance, succession, or other death taxes imposed because of the death of the Settlor from the principal of the Trust Estate regardless of the property or interests in property, whether connected with this Trust or not, that gave rise to such taxes. ARTICLE vm TRUSTEES SUCCESSION A. Succession. Either Trustee may resign at any time by giving thirty (30) days written notice to Settlor and the other Trustee, said notice sufficient if mailed to Settlor and the other Trustee by certified mail, return receipt requested. Settlor may remove any Trustee by giving written notice to such Trustee, provided that Settlor shall not exercise his power to remove a Trustee unless Settlor appoints one of his then-living children as successor Trustee. In the event of the resignation or incapacity of Settlor, death or inability of the other Trustee to so serve, Settlor hereby designates ELIZABETH DURNAN - HOWERTON as successor Trustee. 5 B. Powers and Duties. Any successor Trustee appointed as provided in Section A shall, upon such appointment being made, immediately succeed to all title of the Trustees to the Trust Estate and to all powers, rights, discretions, obligations and immunities of the Trustees under this Agreement with the same effect as if such success or Trustee was originally named as a Trustee herein. Such successor Trustee shall not be liable for any acts or omissions of the Trustee whom successor Trustee replaces. ARTICLE IX COMPENSATION OF TRUSTEES The Settlor shall not be entitled to any compensation for his services as Trustee. Any other Trustee shall be entitled to receive reasonable compensation for her or his services under this Agreement, such compensation not to exceed the amount that would be permitted by a Court of competent jurisdiction. ARTICLE X BOND No bond shall be required of the original Trustees hereunder or of any successor Trustee; or if a bond is nonetheless required by law, no surety shall be required on such bond. ARTICLE X MISCELLANEOUS A. Applicable Law. All questions relating to the validity and construction of this Trust Agreement, the determination of the shares of any beneficiaries, the dates, powers, authority in discretion of the Trustee, and all other matters arising in connection therewith shall be govern by, and the Trust Estate shall be administered in accordance with the laws of the Commonwealth of Pennsylvania. B. ~. The situs of the property of any trust created hereunder may be maintained in any jurisdiction, in the Trustees sole discretion, and thereafter transferred at any time or times to any jurisdiction selected by the Trustees. Upon any such transfer of situs, the Trust Estate may thereafter, at the election of the Trustee, be administered exclusively under the laws of the jurisdiction to which it has been transferred. Accordingly, if the Trustee elects to change the situs of any Trust hereunder, said Trustee is hereby relieved of any requirement of having to qualify in any other jurisdiction and of any requirement of having to account in any court of such other jurisdiction. C. Invalidity. Should any provision of this Trust Agreement be or become invalid or unenforceable, the remaining provisions of this Agreement shall be and continue to be fully effective. D. Intez:pretation. Whenever used herein, the singular shall include the plural, the plural the singular and the use of any gender shall be applicable to all genders. ITEM III -RATIFICATION. Except as expressly modified by this Amendment, the Agreement shall remain in full force and effect. 6 II IN WITNESS WHEREOF, and with intent to be legally bound hereby, the parties have hereunto set their hands and seals as of the day and year ftrst above written. Signed, Sealed and Delivered In the Presence of" (S" C~ 4/~ I (~.;;. r/~ SETTLOR: ( 8"/ [J) Ii) JOSEPH H. DURNAN (SEAL) lRUSTEES IS/, J'/fb JOSEPH H. DURNAN (SEAL) (SEAL) PAUL H. DURNAN \ ~/ 11t.n-~- MARY ALICE CASSIDY (SEAL) 7 0. PNC1NVESTMENTS Member NASD and SlPC March 6, 2006 Mary Alice Cassidy 25 Conway Drive Mechanicsburg, P A 17055 SUBJECT: Mary Alice Cassidy VIA Dated 10-20-98 For Joseph H Duman RE: Date of Death Valuation Dear Mrs. Cassidy: Please find below the requested information: Date of Death Value (01/31/2006): 9,330.739 Shares BLACKROCK GOVT INC B 18,734. Shares FIRST TR SR LN & HI 2 CA PNGBX@ $10.80 per share FSRLAX @ 8.46 per share In Investment Account Number 1993-0474 there is a money market balance of $711.87. Please do not hesitate to contact me if I can provide you with further service. Sincerely, C~~ Charles E Little, CFP Vice President Senior Financial Consultant The information contained herein has been obtained from sources we believe to be reliable, but do not guarantee it to be accurate, correct, complete or timely, and shall not be responsible for the results obtained from it's use. A member of The PNC Financial Services Group 2 East Main Street Mechanicsburg Pennsylvania 17055 www.pncinvestments.com Important Investor Information: Securities and brokerage services are provided by PNC Investments LLC, member NASD and SIPC. Annuities and other insurance products are offered by PNC Insurance Services, Inc. a licensed insurance agency. [I.MaY Loo: Value , . , .No Bank Guarantee