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HomeMy WebLinkAbout10-10-08J 15056041147 REV-1500 EX (06-05) OFFICIAL USE ONLY PA Department of Revenue County Code Year File Number Bureau of Individual Taxes INHERITANCE TAX RETURN PO BOX.280601 21 0 8 0 0 9 7 Harrisburg, PA 17128-0601 RESIDENT DECEDENT ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death Date of Birth 164 58 6402 O1 12 2008 10 15 1927 Decedent's Last Name Suffix Decedent's First Name MI flEN HARTOG GEURT (If Applicable) Enter Surviving Spouse's Information Below Spouse's Last Name Suffix Spouse's First Name MI ~EN HARTOG GRADA Spouse's Social Security Number THIS RETURN MUST OE FILED IN DUPLICATE WITH THE REGISTER OF WILLS FILL IN APPROPRIATE OVALS BELOW ~~, 1. Original Return 4. Limited Estate g Decedent~Died Testate (Attach Copy of Will) 2. Supplemental Return 4a. Future Interest Compromise (date of death after 12-12-82) ~ Decedent Maintained a Living Trust (Attach Copy of Trust) 3, Remainder Return (date of death prior to 12-13-82) C' S. Federal Estate Tax Return Required 8. Total Number of Safe Deposit Boxes 9. Litigation Proceeds Received ~ 10. Spousal Poverty Credit (date of death ~ f t, Election to tax under Sec. 9113(A) between 12-31-91 and 1-1-95) (Attach SCh. O) CORRESPONDENT -THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO: Name Daytime Telephone Number HAMILTON C. DAVIS 717 53rd 5713;: Firm Name (If Applicable) ZULLINGER-DAVIS, PC First line of address P.O. BOX 40 Second line of address City or Post Office SHIPPENSBURG 0 State ZIP Code `- PA 17257-0040 Correspondent'se-mail address: hamiltondavislaw@COmCaSt.net Under penalties of perjury, 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, corcect 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 DATE Qit,a,c.. (~, ,G~ ~~er~~ Grada den Hartog /01 GI I t~51 ADDRESS 299 BULLSHEAD ROAD, Newville, PA 17241 dGN9 RE OF PR@PARER QTHER THAN REPRESENTATIVE Hamilton C. Davis DATE P.O. BOX 40, Shippensburg, PA 17257-0040 Side 1 15056041147 15056041147 DATE FILED -Li -~,: tv t17 c~1 PA Inheritance Tax Return Signature of Additional Fiduciaries ESTATE OF 1 21 08 0097gER den Hartog, Geurt Under penalties of perjury, 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 #2 Name Address1 Address2 City, State, Zip Date Berard J. den Hartog 1322 THIRD AVENUE Chambersburg, PA 17201 15056042148 REV-1500 EX Decedent's Social Security Number Decedent's Name: G e u rt den H a rt o g 16 4 5 8 6 4 0 2 RECAPITULATION 1. Real Estate (Schedule A) .................................................................................... ...... 1. 210,000.00 2. Stocks and Bonds (Schedule B) ......................................................................... ...... 2. 3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C).... ...... 3. 4. Mortgages & Notes Receivable (Schedule D) .................................................... ...... 4. 2 6 7, 1 4 8. 0 0 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) ........... ..... 5. 3 5 0 , 0 0 0 . 0 0 6. Jointly Owned Property (Schedule F) ~ Separate Billing Requested ........ ..... 6. 2 9 , 7 0 6 . 0 0 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G) ~ Separate Billing Requested ........ ..... 7. g. Total Gross Assets (total Lines 1-7) .................................................................. ..... g. 8 5 6, 8 5 4. 0 0 9. Funeral Expenses & Administrative Costs (Schedule H) ................................... ...... 9. 2 8 , 5 9 9 . 0 0 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) .......................... ...... 10. 11. Total Deductions (total Lines 9 & 10) ................................................................ ...... 11 • 2 8 , 5 9 9 . 0 0 12• Net Value of Estate (Line 8 minus Line 11) ....................................................... ...... 12. 8 2 8 , 2 5 5 . 0 0 13. Charitable and Governmental Bequests/Sec 9113 Trusts for which an election to tax has not been made (Schedule J) ............................................ ..... 13. 6 , 0 0 0 . 0 0 14. Net Value Subject to Tax (Line 12 minus Line 13) ........................................... ...... 14. 8 2 2 , 2 5 5 . 0 0 TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, of transfers under Sec. 9116 (a)(1.2>x.oo 822 , 255.00 15. 16. Amount of Line 14 taxable at lineal rate X .045 0 . 0 0 16. 17. Amount of Line 14 taxable at sibling rate X .12 0 . 0 0 17. 18. Amount of Line 14 taxable at collateral rate X .15 0 . 0 0 18. 19. Tax Due .................................................. .................................................................. . 19. 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT. Side 2 15056042148 15056042148 0.00 0.00 0.00 0.00 0.00 J REV-1500 EX Page 3 Decedent's Complete Address: File Number 21-08-0097 DECEDENT'S NAME Geurt den Hartog STREET ADDRESS 299 BULLSHEAD ROAD CITY Newville STATE PA ZIP 17241 Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit g, Prior Payments C. Discount 3. InteresUPenalty if applicable p, Interest E. Penalty 0.00 Total Credits (A + B + C) (1) 0.00 (2) 0.00 (3) (4) (5) 0.00 (5A) (5B) ~ . Total InteresUPenalty (D + E) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Check box on Page 2 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. A. Enter the interest on the tax due. B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. Make Check Payable to: REGISTER OF WILLS, AGENT 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 :.................................................................................. ~ Ox b. retain the right to designate who shall use the property transferred or its income :.................................... ] ; x c. retain a reversionary interest; or .................................................................................................................. d. receive the promise for life of either payments, benefits or care? .............................................................. 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? ....................................................................................................................... ~' ^x 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death?......... [] ~x 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? ...................................................................................................................... ~ x^ IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. 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 three (3) percent [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 surviving spouse is zero (0) percent [72 P.S. §9116 (a) (1.1) (ii)J. The statute does not exempt a transfer to a surviving spouse from tax, and the statutory requirements for disclosure 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 or for the use of a natural parent, an adoptive parent, or a stepparent of the child is zero (0) percent [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 four and one-half (4.5) percent, except as noted in 72 P.S. §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 twelve (12) percent [72 P.S. §9116 (a) (1.3)J. A sibling is defined under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption. Rev-1502 EJt+ (g.Bg) SCHEDULE A REAL ESTATE COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER den Hartog, Geurt 21-08-0097 All real property owned solely or as a tenant In common must be reported at felt market value. Fair market value is defined as the price at which property would be exchanged between a willing buyer and a willing seller, neither being compelled to buy or sell, both having reasonable knowledge of the relevant facts. Real property which Is Jolntlyowned with right of survivorship must be disclosed on schedule F. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 REAL ESTATE - AN UNDIVIDED ONE-HALF INTEREST IN HOUSE AND 39 ACRES 152,000.00 LOCATED IN CUMBERLAND COUNTY, PA, KNOWN AND NUMBERED AS 299 BULLSHEAD ROAD, NEWVILLE, PA 17241 (SEE ATTACHED APPRAISAL) REAL ESTATE - AN UNDIVIDED ONE-HALF INTEREST IN 2 ACRE LOT WITH I 58,000.00 UTILITY BUILDING (SEE ATTACHED APPRAISAL) TOTAL (Also enter on Line 1, Recapitulation) I 210,000.00 (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 A (Rev. 6-98) Rev-1507 EX+ (6.98) SCHEDULE D i MORTGAGES & NOTES RECEIVABLE COMMONWEALTH Of PENNSYLVANIA INHERITANCE TA% RETURN RESIDENT DECEDENT ESTATE OF (FILE NUMBER den Hartog, Geurt 21-08-0097 All property jointly-owned with right of survivorship must be disclosed on Schedule F. (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 D (Rev. 6-98) Rev-1508 EX+ (8-98) SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF (FILE NUMBER den Hartog, Geurt 21-08-0097 Include the proceeds of litigation and the date the proceeds were received by the estate. All property Jolntlyowned with the right of survivorship must be disclosed on schedule F. (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-1509 EX+ (5.98) ` SCHEDULE F COMMONWEALTH OF PENNSYLVANIA JOINTLY-OWNED PROPERTY INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF (FILE NUMBER den Hartog, Geurt 21-08-0097 If an asset was made Joint within one year of the decedent's date of death, it must be reported on schedule G. SURVIVING JOINT TENANT(S) NAME ADDRESS RELATIONSHIP TO DECEDENT A. Grada den Hartog 299 BULLSHEAD ROAD Wife Newville, PA 17241 B. C. JOINTLY OWNED PROPERTY: ITEM NUMBER LETTER FOR JOINT TENANT DATE MADE JOINT DESCRIPTION OF PROPERTY INCLUDE NAME OF FINANCIAL INSTITUTION AND BANK ACCOUNT NUMBER OR SIMILAR IDENTIFYING NUMBER. ATTACH DEED FOR JOINTLY-HELD REAL ESTATE. DATE OF DEATH VALUE OF ASSET % OF DECD'S INTEREST DATE OF DEATH VALUE OF DECEDENT'S INTEREST 1 A MISCELANEOUS TANGIABLE 2,500.00 50.000% 1.250.00 PERSONAL PROPERTY -SHED CONTENTS 2 A HOUSEHOLD GOODS AND 1,000.00 50.000% 500.00 FURNISHINGS AND TANGIABLE PERSONAL PROPERTY HELD BY DECEDANT AND HIS SPOUSE AS TENANTS BY ENTIRETY 3 A 1993 CHEVY LUMINA 3.000.00 50.000% 1,500.00 4 A 1989 FORD F-250 PICK-UP 4,000.00 50.000% 2,000.00 5 A M8T SAVINGS ACCOUNT NO. 98236857 - 48,043.00 50.000% 24,021.50 JOINT WITH SPOUSE 6 A ORRSTOWN BANK CHECKING 869.00 50.000% 434.50 ACCOUNT NO. 106002855 -JOINT WITH SPOUSE TOTAL (Also enter on Line 6, Recapitulation) I 29,706.00 (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 F (Rev. 6-98) REV-7151 EX+ (12-99) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS ESTATE OF FILE NUMBER den Hartog, Geurt 21-08-0097 Debts of decedent must be reported on Schedule I. ITEM DESCRIPTION AMOUNT NUMBER A. FUNERAL EXPENSES: See continuation schedule(s) attached 1,985.00 B. ADMINISTRATIVE COSTS: 1. Personal Representative's Commissions Social Security Number(s) / EIN Number of Personal Representative(s): Street Address City State Zip _ Year(s) Commission paid 0.00 See continuation schedule(s) attached 2. Attorney's Fees 25,000.00 See continuation schedule(s) attached 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 5. Accountant's Fees 6. Tax Return Preparer's Fees 7. Other Administrative Costs 1,614.00 See continuation schedule(s) attached TOTAL (Also enter on line 9, Recapitulation) 28,599.00 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H (Rev. 6-98) Rev-1502 EX+ (6.98) SCHEDULE H-A FUNERAL EXPENSES continued COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF (FILE NUMBER den Hartog, Geurt 21-08-0097 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H-A (Rev. 6-98) Rev-1502 EX+ (6.98) SCHEDULE H-B1 PERSONAL REPRESENTATIVE'S COMMISSIONS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN continued RESIDENT DECEDENT ESTATE OF (FILE NUMBER den Hartog, Geurt 21-08-0097 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H-B1 (Rev. 6-98) Rev1602 EX+ (6.98) SCHEDULE H-B2 ATTORNEY'S FEES continued COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF (FILE NUMBER den Hartog, Geurt 21-08-0097 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H-62 (Rev. 6-98) Rev-1502 EX+i6.98) SCHEDULE H-B7 OTHER ADMINISTRATIVE COSTS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN continue RESIDENT DECEDENT ESTATE OF (FILE NUMBER den Hartog, Geurt 21-08-0097 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H-B7 (Rev. 6-98) REV-1513 EX+ (9.00) SCHEDULE J COMMO ANIA TA BENEFICIARIES ERI NCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER den Hartog, Geurt 21-08-0097 NAME AND ADDRESS OF RELATIONSHIP TO SHARE OF ESTATE AMOUNT OF ESTATE NUMBER PERSON(S) RECEIVING PROPERTY DECEDENT (Words ) ($$$) Do Not List Trustees I. TAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under Sec. 9116(a)(1.2)] See attached schedule Total 828,255.00 Enter dollar amounts for distributions shown above on lines 1 5 through 18, as appropri ate, on Rev 1500 cove r sheet II. NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS See continuation schedule(s) attached 6,000.00 TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET 6,000.00 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule J (Rev. 6-98) SCHEDULE J BENEFICIARIES (Part I, Taxable Distributions) ESTATE OF: Geurt den Hartog 01/12/2008 164-58-6402 Item Name and Address of Person(s) Share of Estate Amount of Estate Number Receiving Property Relationship (Words) ($$$) Grada den Hartog Wife All 828,255.00 299 BULLSHEAD ROAD Newville, PA 17241 --The residuary estate of the decedent passes outright to his surviving spouse by virtue of ITEM V (page 5) of decedent's Will. Total 828,255.00 Rev1602 EX+ (6.98) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE J-11B CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS continued ESTATE OF (FILE NUMBER den Hartog, Geurt 21-08-0097 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule J-IIB (Rev. 6-98) ~ ~' ~~ 7 ZOG6 ~~1flY 1? fl~ ~ 19 Tax Parcel Number: 30-08-0593-039C THIS DEED .. rn ~ ~,~ ~ ~., , ~ Made the ~ day of ~ ~ ~ , 2006, --~ ~, ~ rn w~'_ ~, o ~> ~ BETWEEN d ~ C. w == [~ iC Ga `7 r--~ m ~~ s= ~EURT den HARTOG and GRADA J. den HARTOG, husband and wife, of 299 Bulkhead Road, `-' «'' l~ewville P ~.! _ ennsylvania 17241, _.. ° "GRANTORS", and GEURT den HARTOG and GRADA J. den HARTOG, husband and wife, of 299 Bullhead Road, Newville, Pennsylvania 17241, to each an undivided one-half ('/z) interest as Tenants in Common (and not as Tenant by the Entirety or as Joint Tenants with the Right of Survivorship), "GRANTEES". WITNESSETH, that in consideration of the sum of One ($1.00) Dollar, in hand paid, the receipt whereof is hereby acknowledged, the said GRANTORS hereby grant and convey in fee simple to said GRANTEES, their heirs and assigns, to each an undivided one-half (%s) interest as Tenants in Common (and not as Tenant by the Entirety or as Joint Tenants with the Right of Survivorship). ALL the following described real estate, together with the improvements erected thereon, lying and being situate in North Newton Township, Cumberland County, Pennsylvania, more particularly described as follows: BEGINNING at a spike in the center of L.R. 21084; thence by land now or formerly of Ray E. Hostetter and Doris A. Hostetter, his wife, South 68 degrees 51 minutes 20 seconds West, 1441 feet to an iron pin; thence by the same, North 38 degrees 45 minutes 47 seconds West, 408.6 feet to an iron pin; thence by the same, North 34 degrees 19 minutes 30 seconds West, 210.2 feet to an iron pin; thence by the same, North 29 degrees 34 minutes 10 seconds West, 475.50 feet to an iron pin on the western bank of Green Spring; thence crossing said Spring, North 64 degrees 38 minutes 35 seconds East, 55.2 feet to an iron pin on the East bank of Green Spring; thence North 4 degrees 59 minutes West, 271.88 feet to an iron pin on the Southeast bank of Green Spring; thence North 59 degrees 23 minutes 37 seconds East, 227.5 aoo~x 2?4 ~~c~x881, feet to an iron pin on the South bank of Green Spring; thence South 89 degrees 22 minutes East, b4.16 feet to an iron pin on the South bank of Green Spring, thence North 69 degrees 14 minutes 27 seconds East, 96.77 feet to a post on the South bank of Green Spring; thence North 52 degrees 34 minutes East, 448.:17 feet to a point in Green Spring; thence North 2 degrees 7 minutes West, 363 feet to a point in Green Spring; thence North 23 degrees 37 minutes West, 330 feet to a point in Green Spring; thence North 40 degrees 7 minutes West, 99 feet to a point in Green Spring; thence North 52 degrees 7 minutes West, 208 feet to a point in Green Spring; thence by land now or formerly of Harold Weaver, North 60 degrees 23 minutes b seconds East, 1658.25 feet to an iron pin; thence by land now or formerly of John F. Stamy, Jr,, South 26 degrees 17 minutes 1 S seconds East, 1582.15 feet to a post; thence by the same North 63 degrees 6 minutes 10 seconds East, 1506.45 feet to an iron pin; thence by land now or formerly of Paul H. Finkenbinder, South 29 degrees 15 minutes 20 seconds East, 1423.b7 feet to an iron pin; thence by and now or formerly of Frank J. Yost, South 54 degrees 20 minutes 27 seconds West, 2607.4 feet to a spike in the center of L.R21084 aforesaid; thence by the center of said road, North 33 degrees 45 minutes West, 250 feet to a spike; thence by the same, North 33 degrees 23 minutes 28 seconds West, 600 feet to a point the place of BEGINNING. LESS, HOWEVER, three interior tracts bounded and described as follows: 1. BEGINNING at a spike in the center of L.R. 21084; thence North 59 degrees 2 minutes 24 seconds East, 300 feet to an iron pin; thence South 30 degrees 57 minutes 36 seconds East, 200.4 feet to an iron pin; thence South 59 degrees 2 minutes 24 seconds West, 300.05 feet to a spike in the center of L.R. 21084; thence by the center of said road, North 30 degrees 21 minutes 48 seconds West, 5.4 feet to a point; thence by the center of said road, North 30 degrees 57 minutes 36 seconds West, 195 feet to the place of BEGINNING. CONTAIl~]ING 1.38 acres. 2. BEGINNING at a spike in the center of L.R. 21084; thence South 68 degrees 45 minutes 19 seconds West, 506.28 feet to an iron pin; thence North 21 degrees 47 minutes 36 seconds West, 150 feet to a post; thence North Sb degrees 48 minutes 47 seconds East, 466.23 feet to a spike in the center of L.R. 21084; thence by the center of said road, South 33 degrees 3 minutes 50 seconds East, 251.81 feet to the place of BEGINNING. CONTAINING 2.219 acres. 3. BEGINNING at a post on the South bank of Green Spring; thence South 59 degrees 28 minutes 40 seconds West, 316.6 feet to a post; thence South 25 degrees 32 minutes 33 seconds East, 211.3 feet to a post; thence North 65 degrees 4 minutes 30 seconds East, 2 142.02 feet to an iron pin; thence South 27 degrees 2 minutes 36 seconds East, 203.56 feet to a post; thence North 69 degrees 28 minutes 50 seconds East, 94.45 feet to a post; thence North 27 degrees 38 minutes 50 seconds West, 171.25 feet to an iron pin; thence North 57 degrees 8 minutes East, 95.34 feet to an iron pin; thence North 28 degrees 35 minutes 43 seconds West, 267.17 feet to the place of BEGINNING. CONTAINING 2.186 acres. EXCEPTING THEREFROM, the following adverse conveyances: 1. A certain tract of land containing 142.4721 acres, conveyed 'by Geurt den Hartog and Grads Johanna den Hartog, to Gary L. Halteman and Joanne M. Halteman, by deed dated May 20, 2005, and recorded in Deed Book 268, Page 4810. 2. A certain tract of land containing 2.000 acres, conveyed by Geurt den Hartog and Grads Johanna den Hartog, to G Geurt den Hartog and Grads Johanna den Hartog, by deed dated May 20, 2005, and recorded in Deed Book 268, Page 4972. 3. A certain tract of land containing 11.24 acres, conveyed by Geurt den Hartog and Grads Johanna den Hartog, to Hamilton C. Davis and Jill A. Davis, by deed dated August 20, 1980, and recorded in Deed Book "B", Volume 29, Page 493. The above-described real estate is a part of the same which Karl B. Kough and Phyllis H. Kough, his wife, by their Deed dated June 29, 1979 and recorded June 29, 1979, in the Office of the Recorder of Deeds in and for Cumberland County, in Deed Book "M", Volume 28, Pate 883, granted and conveyed unto Geurt den Hartog and Grads Johanna den Hartog, his wife, Grantors herein. AND, the said Grantors hereby specially warrant the property herein conveyed. This deed is between husband and wife and is therefore exempt from Realty Transfer Tax and the obligation of filing a Statement of Value. IN WITNESS WHEREOF, the said hereby set and the day and year first above written. Witness: GEUR den HARTOG GRADA J. den HARTOG COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND ss. On this, the ~_ day of ~ 2006, before me, the undersigned officer, personaily appeared GEURT den HAR and GRADA J. den HARTOG, known to me (or satisfactory proven) to be the persons whose names are subscribed to the within acknowledged that they executed same for the ~~~~ and purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. COMMONWEALTH OF PENNSYLVANIA seal Notary Public Harnlltott c. ~a-b, Nolary PubYc snipper,stx,~y Born, Qntber}ar~d Comity My Comrniesion E>q~irea Sept 27, 2008 Member. Pennsylvania Association Of Notaries CERTIFICATE OF RESIDENCE I do hereby cerkify that the precise resi ence and com lets named GRANTEES is 7 qq q {~j (~5~ P post office address of the within ~1 ~ Ns~.~..,'l1t ~a ~~ zy~ . Attorney or s -c;rt~ty this ~u be recorded H~~PO eo~ao • ~tl Cumberland Coun sn;, PA 17257 ty PA (717)332-3713 __ ,/ f/ ,. ~~" .~ !~ ' 4 ,Recorder of Deeds ~°?~ ~~ j--?~ . APPRAISAL REPORT SINGLE-FAMII,Y DWELLING 299 BULLSHEAD ROAD NEWVILLE, PENNSYLVANL~ PREPARED FOR THE ESTATE OF GEURT DEN HARTOG BY LARRY E. FOOTE DIVERSIFIED APPRAISAL SERVICES 35 EAST HIGH STREET, SUITE 101. CARLISLE, PENNSYLVANIA 17013-3052 (717) 249-2758 COPY SUMMARY OF IlVIPORTANT FACTS AND CONCLUSIONS LOCATION: TAX PARCEL NUMBER: 299 Bulkhead Road Newville, Pennsylvania 30-08-0596-039C IlVIPROVEMENTS: Two-story detached single-family dwelling. PROPERTY RIGHTS: Fee simple interest. OWNERSHIP HISTORY: The subject property is owned by Geurt den Hartog and Grada Johanna den Hartog. No sale of this property has taken place during the past three years. SCOPE OF THE ASSIGNMENT: The scope of the assignment included an analysis of the subject's area, an inspection of the subject property, an estimation of the property's highest and best use, consideration of all three appraaches to value, and the application of those relevant to the valuation of the subject, including a discount fir "tenant in common" ownership. OBJECTIVE: To estimate the market value of the subject property as unencumbered. EFFECTIVE DATE: January 12, 2008. HIGHEST AND BEST USE: Continued use as asingle-family residence. COST APPROACH: N.A. SALES APPROACH: $264,000 INCOME APPROACH: N.A FINAL VALUE CONCLUSION: $264,000 2 APPRAISAL CERTIFICATION I hereby certify that upon application for valuation by: THE ESTATE OF GEURT DEN HARTOG the undersigned personally inspected the following described property: All those certain pieces or parcels of land, with the improvements thereon erected, situate in North Newton Township, Cumberland County, Pennsylvania, bounded and described as follows: Beginning at a spike in the center of L.R. 21084; thence by land now or formerly of Ray E. and Doris A. Hostetter, South 68 degrees 51 minutes 20 seconds West, 1441 feet to an iron pin; thence by the same, North 38 degrees 45 minutes 47 seconds West, 408.6 feet to an iron pin; thence by the same, North 34 degrees 19 minutes 30 seconds West, 210.2 feet to an iron pin; thence by the same, North 29 degrees 34 minutes 10 seconds West, 475.50 feet to an iron pin on the western bank of Green Spring; thence crossing said Spring, North 64 degrees 38 minutes 35 seconds East, 55.2 feet to an iron pin on the East bank of Careen Spring; thence North 4 degrees 59 minutes West, 271.88 feet to an iron pin on the Southeast bank of Green Spring; thence North 59 degrees 23 minutes 37 seconds East, 227.5 feet to an iron pin on the South bank of Green Spring; thence South 89 degrees 22 minutes East., 64.16 feet to an iron pin on the South bank of Green Spring; thence North 69 degrees 14 minutes 27 seconds East, 96.77 feet to a post on the South bank of Green Spring; thence North 52 degrees 34 minutes East, 448.17 feet to a point in Green Spring; thence North 2 degrees 7 minutes West, 363 feet to a point in Green Spring; thence North 23 degrees 37 minutes West, 330 feet to a point in Green Spring; thence North 40 degrees 7 minutes West, 99 feet to a point in Green Spring; thence North 52 degrees 7 minutes West, 208 feet to a point in Green Spring; thence by land now or formerly of Harold Weaver, North 60 degrees 23 minutes 6 seconds East, 1,658.25 feet to an iron pin; thence by land now or formerly of John F. Stamy, Jr., South 26 degrees 17 minutes 16 seconds East, 1,582.15 feet to an iron pin; thence by land now or formerly of Paul H. Finkenbinder, South 29 degrees 15 minutes 20 seconds East, 1,423.67 feet to an iron pin; thence by land now or formerly of Frank J. Yost, South 54 degrees 20 minutes 27 seconds West, 2,607.4 feet to a spike in the center of L.R. 21084 aforesaid; thence by the same, North 33 degrees 23 minutes 28 seconds West, 600 feet to a point, the place of beginning. Less, however, all those certain tracts of land more particularly bounded and described in Cum- berland County Deed Book 274, Pages 2882 and 2883. The remaining area of this tract of land is approximately 34.20 acres. To the best of my knowledge and belief the statements contained in this report are true and correct, and that neither the employment to make this appraisal nor the compensation is contingent upon the value reported, and that in my opinion the Market 'Value as of January 12, 2008 is: TWO HUNDRED SIXTY-FOUR THOUSAND DOLLARS $264,000 The property was appraised as a whole, subject to the contingent and limitin c outlined herein. g onditions :; -- ~ ~~ L E. Foote Certified General Appraiser GA-000014-L ~,~ 4 INTENDED USE OF THE APPRAISAL The intended use of this appraisal is to estimate the Market Value of the subject property as of January 12, 2008. Market Value is defined as the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a. Buyer and seller are typically motivated. b. Both parties are well informed or well advised, and each acting in what he considers his own best interest. c. A reasonable time is allowed for exposure in the open market. d. Payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto. e. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Source: Office of the Comptroller of the Currency, 12 CFI §34.42(f). ffiGHEST AND BEST USE Highest and Best Use is defined by the Appraisal Terminology and Handbook, published by the Appraisal Institute, as "the most profitable likely use to which a property can be put". The opinion of such use may be based on the highest and most profitable continuous use to which the property is adapted and needed, or likely to be in demand, in the reasonable near future. However, elements affecting value that depend upon events or a combination of occurrences which, while within the realm of possibility, are not fairly shown to be reasonably probable, should be excluded from consideration. Also, if the intended use is dependent on an uncertain act of another person, the intention cannot be considered. Based on the above definition and after seeing the site, neighborhood, and area, it is my opinion that the present use of the subj ect is its Highest and Best Use. 5 SITE DATA ADDRESS: 299 Bullshead Road TOWNSHIP: North Newton COUNTY: Cumberland STATE: Pennsylvania LOT SIZE: Approximately 34.20 acres. SEWERS: On-site septic system. WATER: On-site well. ELECTRICITY: PP&L LANDSCAPING: Typical for the area, with a sodded lawn, trees and shrubs. DETRIMENTAL INFLUENCES None. Pride of ownership is evident throughout the neighborhood. DESCRIPTION OF IMPROVEMENTS GENERAL DESCRIPTION: One-story detached single-family dwelling containing approxi- mately 1,655 square feet of gross living area above grade with an attached two-car garage. CONDITION: Exterior: Average Interior: Average ROOMS: First Floor: Living room, kitchen, dining room, three bedrooms, laundry room and two full bathrooms. Basement: Full, with concrete floor. EXTERIOR: Foundation: Concrete block. Walls: Brick Sash: Wood-framed, single-glazed. Gutters: Aluminum, painted. Roof: Gable, with shingles. INTERIOR, PRINCIPAL ROOMS: Flooring: Carpet 6 Walls: Drywall Ceilings: Drywall Trim: Wood, stained and varnished. KITCHEN: Cabinets: Wood, stained and varnished. Counters: Formica Walls: Drywall, painted. Flooring: Vinyl Sink: Double-bowl, stainless steel. BATHROOMS: Flooring: Vinyl Walls: Drywall, painted. Bathtub: Built-in, with shower or shower stall. Lavatory: Vanity Water closet: Two-piece. Medicine cabinet: Wall-mounted. CONSTRUCTION: Joists: Wood Beams: Steel Columns: Steel Plumbing: Copper and plastic. HEATING: Heat pump. COOLING: Central air conditioning. HOT WATER: Electric, 50-gallon. ELECTRIC: Circuit breaker system, 200-ampere. OTHER: There is a brick fireplace located in the living room. GENERAL CONDITION: All improvements are considered to be in. average condition on the interior and on the exterior, with mechanical systems appearing to be adequate and functioning properly. 7 THE APPRAISAL PROCESS Three approaches to value are generally included in an appraisal report. These techniques include the cost approach, sales comparison approach, and income approach to value. The cost approach to value is based on the assumption that the reproduction cost of a building plus land value, tends to set the upper limit to value. A key assumption is that a newly constructed building would have advantages over the existing building, therefore an evaluation focuses upon disadvantages or deficiencies (depreciation) of the existing building compared to anew facility. Due to the age of the subject improvements, the cost approach is considered to be inappropriate and has, therefore, not been included in the development of this appraisal report. The sales comparison approach to value assumes that under normal conditions, a given number of parties acting intelligently and voluntarily, tend to set a pattern from which value can be estimated. Application of this approach relies on a comparison of the subject with a sufficient number of recent transactions of comparable properties in the market, based on a common unit, such as price per square foot of building area. In this particular situation, a discount is required for "tenant in common" ownership. The income approach concerns itself with present worth of the future potential benefits of a property. The initial estimate involves the net income, which a fully informed person is justified in assuming the property will produce during its remaining useful life. This estimated net income is then capitalized into a value estimate, based upon the level of risk as compared with that of a similar type and class. Since homes similar to the subject are not typically utilized as income-producing investment properties, the income approach to value is considered to be inappropriate and has, therefore, not been included in the development of this appraisal report. 8 .. _ _„ ,. ,ALES l.V1v1YA.tctavly arrnv~v.n In arriving at this conclusion of the value of the subject property, the appraiser made a survey of properties that have sold in the area of the subject property. Consideration was given and adjustments were made on each comparable sale as to time of sale, size, location, as well as all other factors that might affect value. A resume of some of the sales considered by the appraiser is as follows: SALE NO. 1: Location: 102 Alters Road, Carlisle. Date of Sale: May 23, 2007. Sale Price: $294,900 Size: 1,464 square foot dwelling with other buildings on 18.73 acres. Unit Price: $201.43 per square foot. SALE NO. 2: Location: 39 Valley Road, Newville. Date of Sale: May 18, 2007. Sale Price: $275,000 Size: 1,300 square foot dwelling with other buildings on 19.00 acres. Unit Price: $211.54 per square foot. SALE NO. 3: Location: 4255 Carlisle Road, Gardners. Date of Saie: Apri126, 2006. Sale Price: $275,500 Size: 1,248 square foot dwelling with other buildings on 14.74 acres. Unit Price: $220.75 per square foot. The appraiser, in addition to the sales listed, also considered several additional sales in arriving at his final opinion of value. On the Sales Comparison Analysis form that follows this page are dollar adjustments reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to, or more favorable than, the subject property, a minus (-) adjustment is made, thus reducing the indicated value of the subject; if a significant item in the comparable is inferior to, or less favorable than, the subject property, a plus (+) adjustment is made, thus increasing the indicated value of the subject. After making all of the necessary adjustments, it is the appraiser's considered opinion that the indicated value of the subject property by the Sales Comparison Approach is $264,000. 9 SALES COMPARISON ANALYSIS ITEM SUBJECT COMPARABLE #1 COMPARABLE; #2 COMPARABLE #3 Address 299 Bullshead Road Newville 102 Alters Road Carlisle 39 Valley Road Newville 4255 Carlisle Road Gardners Proximity to Subject Sale Price N.A. $294,900 $275,0(10 $275,500 Price / Sq. Ft. GLA N.A. $201.43 $211.54 $220.75 Data Source Inspection Courthouse and Central Penn MLS Courthouse and Central Penn MLS Courthouse and Central Penn MLS ADJUSTMENTS DESCRIPTION DESCRIPTION $ Adjust. DESCRIPTION g• Adjust. DESCRIPTION $ Adjust. Sales or Financing Concessions $700 closing costs paid by seller. -500 None None Date of Sale /Time As of 1-12-08 5-23-07 5-18-07 4-26-06 Location Average Superior -14,745 Similar Similar Site 1 View 34.20 acres 18.73 acres +46,410 19.00 acres +q-5,600 14.47 acres +59,190 Design and Appeal One-story detached Similar Similar Similar Construction Brick Brick Vinyl siding +5,000 Aluminum siding +5,000 Age 28 years 32 yeazs 6 years -] 3,750 32 years Condition Average Similar Superior -13,750 Similar Above Grade Room Count Tot Bed. Bath Tot Bed. Bath Tot. Bed. Bath Tot. Bed. Bath 6 3 2 6 3 1 %z +2,000 6 3 Z 6 2 1 +4,000 Gross Living Area 1,655 square feet 1,464 squaze feet +5,730 1,300 square feet +] 0,650 1,248 square feet +12,210 Basement &Finished Rooms Below Grade Full basement Full basement with family room. -2,000 Full basement Full basement Functional Utili Avera a Similar Similar Similar Hearin / Coolin Heat um w/cen. air Baseboard electric +2,000 Geothermal w/cen air ••5,000 Oil-fired hot water +2,000 Gara e / C rt Twocar a Similar None +10,000 Similaz Porches, Patios Pools, etc. Two orches. 2 porches, stable with lean-to, stor. bld . -30,000 Wd. deck, 2 988 sq. ft. & 1 180 sq. ft. stor. bldg. -10,000 Porch, in-ground pool, 1,120 s.f., 432 s.f. & 1,200 s.f. bld . -20,000 Special Energy Efficient Items Typica] for the re 'on. Similar Similaz Similar Fir lace(s) Fir lace Similar None +1,000 None +1,000 Tenant In Common Ownership Interest NetAd'. total) Indicated Value of Su 'ect Yes Discount applied -40,000 -31,]05. 263,795 Discount applied -40,000 -10,250 264,750 Discount applied -40,000 +23,400 298,900 FINAL INDICATED VALUE OF SUBJECT PROPERTY: $264,000 10 CORRELATION Correlation may be defined as "the bringing together of parts in a proper relationship." The parts of this appraisal report are the following approaches to value your appraiser used: Value Indicated by Cost Approach N.A. Value Indicated by Sales Comparison Approach $264,000 Value Indicated by Income Approach N.A. These approaches are representative of the market value of the subject property. I have carefully reexamined each step in each method, and I believe the conclusions accurately reflect the attitude of typical purchasers of this type property in this neighborhood. It is my belief that this reexamination has confirmed the original conclusions. The Cost Approach will result in an excellent estimate if all elements are figured accurately, because no prudent person will pay more for a property i:han the cost to produce a substitute property with equal desirability and utility. Purchasers of the type of dwelling typical of the subject property are more concerned with amenities than with hypothetical replacement of the property. Due to the age of the subject improvements, the Cost Approach is considered to be inappropriate and has not been included in this appraisal report. The Sales Comparison Approach was based on several recent sales of properties similar to that of the subject, all of which are located in the same general area. The adjusted sales prices are most consistent under comparison. This approach is they most reliable because it reflects the reactions of typical buyers and sellers in the market. The Income Approach is most applicable to income producing properties or properties that are primarily utilized for income producing purposes. Purchasers of income producing properties are willing to pay no more for a particular properly than the net operating income will support. Since the majority of properties similar to the subject are not utilized for income producing purposes, this approach to value has not been included in this appraisal report. Therefore, as a result of this appraisal and analysis, it is this appraiser's considered judgment and opinion that the Market Value of the subject property, as of January 12, 2008, is: TWO HUNDRED SIXTY-FOUR THOUSAND DOLLARS $264,000 11 UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS SUBJECT TO THIS APPRAISAL 1. I assume no responsibility for matters legal in nature, nor do [render any opinion as to the title, which is assumed to be marketable. The property is appraised as though under responsible ownership. 2. The legal description used herein is correct. I have made no survey of the property, and the boundaries are taken from records believed to be reliable. 4. I assume that there are no hidden or unapparent conditions of the property, subsoil or structures which would render it more or less valuable. I assume no responsibility for such conditions or for engineering which might be required to discover such factors. 5. The information, estimates, and opinions furnished to me and contained in this report were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy can be assumed by me:. 6. This report is to be used in its entirety and only for the purpose for which it was rendered. 7. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser or the firm with which lie is connected) shall be reproduced, published, or disseminated to the public through advertising media, public relations media, news media, sales media, or any other public means of communication, without the prior written consent and approval of the appraiser., S. This appraisal was prepared for the exclusive use of the client identified in this appraisal report. The information and opinions contained in this appraisal set forth the appraiser's best judgment in light of the information available at the time of the preparation of this report. Any use of this appraisal by any other person or entity, or any reliance or decisions based on this appraisal are the sole responsibility and at the sole risk of the third party. The appraiser accepts no responsibility for damages suffered by any third party as a result of reliance on or decisions made or actions taken based on this report. 12 CERTIFICATE OF APPRAISAL Your appraiser hereby certifies that: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal., impartial, and unbiased professional analyses, opinions, and conclusions. 3. I have no present of prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. To the best of my knowledge and belief, the statements of fact contained in this appraisal report, upon which the analyses, opinions, and conclusions expressed herein are based, are true and correct. 8. This appraisal report sets forth all of the limiting conditions (imposed by the terms of my assignment or by the undersigned) affecting the analyses, opinions, and conclusions contained in this report. 9. This appraisal report has been made in conformity with the Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation, and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the National Association of Realtors Appraisal Section. 13 10. No one other than the undersigned prepared the analyses, conclusions, and opinions concerning real estate that are set forth in this apprais,~l report. ~~~~~ Larry .Foote Certified General Appraiser GA-000014-L 14 PRIVACY NOTICE Pursuant to the Gramm-Leach-Billey Act of 1999, effective July 1, 2001, appraisers, along with all providers of personal financial services are now required by federal law to inform their clients of the policies of the firm with regard to the privacy of client nonpublic personal information. As professionals, we understand that your privacy is very important to you and are pleased to provide you with this information. In the course of performing appraisals, we may collect what is known as "nonpublic personal information" about you. This information is used to facilitate the services that we provide to you and may include the information provided to us by you directly or received by us from others with your authorization. We do not disclose any nonpublic personal information obtained in the course of our engagement with our clients to nonaffiliated third parties, except as necessary or as required by law. By way of example, a necessary disclosure would be to our independent contractors, and in certain situations, to unrelated third party consultants who need to know that information to assist us in providing appraisal services to you. All of our independent contractors and any third party consultants we engage are informed that any information they see as part of an appraisal assignment is to be maintained in strict confidence within the firm. A disclosure required by law would be a disclosure by us that is ordered by a court of competent jurisdiction with regard to a legal action to which you are a party. We will retain records relating to professional services that we have provided to you for a reasonable time so that we are better able to assist you with your needs. In order to protect your nonpublic personal information from unauthorized access by third parties, we maintain physical, electronic and procedural safeguards that comply with our professional standards to insure the security and integrity of your information. 15 LARRY E. FOOTE REAL ESTATE APPRAISER EXPERIENCE: 1979-Present: Chief Appraiser, Diversified Appraisal Services, Carlisle, Pa. Principal Broker, LaRue Development Company, Carlisle, Pa. 1976-1979: Associate Broker, Colonial Realty, Cazlisle, Pa. 1972-1976: Realtor Associate, Jack Gaughen Realtor, Cazlisle, Pa. Appraisal experience included undeveloped land, farms, building lots, single-family dwellings, mobile home parks, medical centers, nursing homes, motels, apartment buildings and complexes, office buildings, service stations, veterinary clinics, rehabilitation centers, retail buildings, daycare centers, warehouses, and manufacturing facilities. EDUCATION: Bachelor of Business Administration, Pennsylvania State University, 1976. Associate Bachelor of Business Administration, Harrisburg Area Community College, 1974. Diploma, Carlisle Senior High School, 1965. Certificate, Pennsylvania Realtors Institute, GRI I, GRI II, GRI III. Certificate, Realtors National Mazketing Institute, CI 101, CI 102,, CI 103, CI 104, CI 105. Standazds of Professional Practice, American Institute of Real Estate Appraisers. Real Estate Appraisal Principles, American Institute of Real Estate Appraisers. Residential Valuation, American Institute of Real Estate Appraisers. Appraisal Procedures, Appraisal Institute. Principles of Income Property Appraising, Appraisal Institute. Case Studies in Real Estate Valuation, Appraisal Institute. Report Writing and Valuation Analysis, Appraisal Institute. PROFESSIONAL LICENSES: General Appraiser #GA-000014-L, Commonwealth of Pennsylvania. Real Estate Broker #RB-029729-A, Commonwealth of Pennsylvania. PROFESSIONAL DESIGNATIONS: GRI: Graduate of the Pennsylvania Realtors Institute, awazded by the Pennsyl- vania Association of Realtors. CRS: Certified Residential Specialist, awarded by the Realtors National Mazket- ing Institute of the National Association of Realtors. CC]M: Certified Commercial Investment Member, awarded by the Realtors National Marketing Institute of the National Association of Realtors. PROFESSIONAL ORGANIZATION AFFILIATIONS: National Association of Realtors Appraisal Section. Greater Harrisburg Association of Realtors. Pennsylvania Association of Realtors. National Association of Realtors. Realtors National Marketing Institute. 16 PAST CLIENTS: Borough of Carlisle Keystone Financial Mortgage Cornerstone Federal Credit Union Pennsylvania State Bank Commerce Bank Cumberland-Perry Association for Retarded Citizens Carlisle Suburban Authority Members 1~` Federal Credit Union Pennsylvania National Bank Evans Financial Corporation Greenawalt & Company, CPA Smith's Transfer Corporation Carlisle Department of Parks and Recreation Executive Relocation Services Carlisle Area School District Messiah Homes, Incorporated ERA Eastern Regional Services Pennsylvania Turnpike Commission Chase Home Mortgage Corporation Defense Activities Federal Credit Union Pennsylvania State Employees Credit Union PNC Mortgage Corporation F&M Trust Company National City Mortgage Corporation Washington Mutual Home Loans, Inc. Prudential Relocation Services Lender's Choice Market Intelligence, Incorporated United Telephone Employees Federal Credit Union Cumberland County Commissioners Allstate Enterprises Mortgage Corporation Dickinson College PPG Industries, Incorporated Gettysburg College Redevelopment Authority of Cumberland County Record Data Appraisal Services, Incorporated First United Federal Savings Association Fulton Bank United States Marshall Service GMAC Mortgage Corporation Orrstown Bank Letterkenny Federal Credit Union BancPlus Mortgage Corporation Coldwell Banker Relocation Services, Incorporated Central Pennsylvania Savings Bank Mellon Bank Provident Home Mortgage Corporation Drovers Bank American Home Bank Trans Union M&T Mortgage Corporation Cody Financial Mortgage Services Waypoint Bank Northwest Savings Bank Blue Ball National Bank Adams County National Bank Countrywide Home Loans Aarrow Mortgage Various law firms and individuals 17 PHOTOGRAPH OF THE SUBJECT IlVIPROVEMENTS 18 19 COMPARABLE SALE N U. 1 COMPARABLE SALE NU. L COMPARABLE SALE NO. 3 MAPQ'IJES~ ~~~~ ~P Vdt2t ~~ i54J, ~ ~'py aan m __ p '-1200 ft ~4~ C~. r~~ ~. . Subject ~ 9`•~e s ~~~d NO'a ~ ~~T ~'a' :hery Rd 2 Po 0 eLUh ti~1' ~Za~F s ~'R ~v a ~~~ ~~ MapOata a~2008NAVTEQ ar TeleAtias 1 ~~ ®2008 R4apCfuest Inc. - 20 DALE F. SHUGHART, JR. ATTORNEY AT LAW 10 WEST HIGH STREET CARLISLE, PENNSYLVANIA 17013 Telephone (71 71 241 -431 1 Facsimile (717) 241-4021 OF COUNSEL HAMILTON C. DAVIS March 7, 2008 Hamilton C. Davis, Esquire P. O. Box 40 Shippensburg, PA 17257 LEGAL ASSISTANI- BONNIE L. COYLE RE: Opinion Letter Estate of Geurt den Hartog The potential expenses and time involved in partition of tenant in common real estate. Dear Hamilton: I am writing in response to your letter of February 25 and the various enclosures regarding Mr. den Hartog's ownership of a one-half tenant in common interest in two parce:Ls of improved real estate, one parcel of approximately two acres with a metal utility building, and another parcel with appro:~imately 34 acres and a home situate on it. You have requested my opinion regarding thE: potential costs and time delays involved in a court proceeding :Eor partition of tenant in common ,real property. As you are aware, I have been involved in a considerable number of these cases over the years. I have also acted as Court-appointed Master in several of them. The most recent two contested cases in which I represented ¢arties were litigated before Judge Bayley, in Cumberland County, who did not refer the cases to a Master. The first case involved partition of several farms which were owned in a partnership, which was dissolved. That case involved two days of hearings before Judge Bayley before it was eventually .settled between the parties. The clients whom I DALE F. SHUGHART, JR. March 7, 2008 Page 2 represented incurred legal fees in excess of $20,000 and appraiser and accountant fees of approximately $10,000. It took approximately two years to litigate the case. If the Court had appointed a Master, the parties would also have paid the Master's fees which would have exceeded $5,000. In this case, once the Court established the value of the land, the parties :•rrked out thei r o~~m agreement aS fig, ; is division. The second case in which I was involved was a 100 acre farm which had been owned as tenant in common by husband and wife like the den Hartog case. On the death of the husband the one-half interest went into a Trust. The wife then gifted her one-half interest to one son, who was also a residuary beneficiary of his Father's Trust. This son had been a Trustee, bu.t was removed from that capacity by the Court. This case was in litigation for more than three years and was ultimately decided by Judge Bayley, again, without referring the matter to a Master. The first issue in thin case was that the one-half owner son wanted to divide the lana~~ in question into two "purparts" of equal value in accordance witY:~ the Rules of Civil Procedure. The Court ultimatel~r held that. the tract could not be divided in half without spoiling the whole and established the value of the property. After the Court did so, the one-half owner son purchased the one-half interest of the: Trust in accordance with the value established by the Court. As with the partnership case above, this case also involved "accounting issues" as to who owed what to whom for taxes, repairs, etc. In this case, I represented one of the beneficiaries and worked with another attorney who represented the: Trust. My fees to my client exceed $10,000. I do not know the other attorney's fees,. but he carried the .laboring oar, and I would guess them to DALE F. SHUGHART, JR. March 7, 2008 Page 3 be at least $25,000. In addition, with the issues of possible subdivision of the farm into "purparts" we had substantial engineering expenses as well as appraisal fees. 1~?y estimate is that those fees paid by my client and the Trust exceeded $15,000. I can therefore comfortably say that approximately $50,000 in fees and expenses were incurred by my client and the Trust in resclvir_g this partition actior_. I wish to note that your appraiser, Larry Foote, served as an expert witness on behalf of parties in both of these partition actions. Currently, I am in the process of filing a partition action in Perry County for a 63 acre piece of woodlot which is owned in fractional interests by ten different people, anal has passed through several estates. My understanding at this point is that I will be representing eight of the ten people filing an action in partition against the other two. I am being paid by one of the owners who agreed to pay all of the legal fees. Some of the fractional interests go out six numbers behind the decimal point,. since interests have passed through a number of estates. I have been working on this case for a year and my client has already paid me fees of approximately $5,000. I have estimated, on the low end, that my additional legal fees will be a.t least another $5,000, and could be higher depending upon what we get into in terms of litigation. In this particular case, I cannot imagine that anyone will push the issue of dividing the land into "purparts", and therefore expect the primary issue to be establishing the value. Based upon the foregoing, if there is a divergence of opinion between Mr. den Hartog's Estate and Mrs. den Hartog, as occurred in the second case referenced above, three different types of issues can occur: March 7, 2008 Page 4 DALE F. SHUGHART, JR. 1. Disputes over apportionment of taxes, i~zsurance, repair costs, and mortgage payments, which are especial:Ly tricky if some parties are in possession of the property, and other parties are not in possession thereof. 2. Issues regarding whether the property c~~n be divided into separate parcels either of equal value, or ~~f sufficiently acceptable value, if all parties are iIl agreemen~~t, treat the party receiving the less valuable land, can be paid do:Llars called "owelty" to equalize the distributions. 3. The third issue becomes valuation, which ultimately is established by the Court. A fourth scenario can arise, which I have bE~en involved in twice, once as court-appointed Master, and once ~~s attorney for one of the parties. If the defendants own more i:han 50% of the value of the real estate, they are entitled to pta.rchase the minority interest for the value set by the Court.. However, if the defendants do not own the majority interest, the property is offered for auction limited to the parties themsE:lves, with the minimum bid being the value established by the Court. If that stage is reached, a whole additional layer of exF>enses are incurred. How much people are willing to invest in litigation does generally have some relationship to the value of the land in question_ However, as we all know, it only takes one "hard head" with an underemployed lawyer to decide to pursue a matter well beyond any "cost/benefit" analysis based on "prir.~cipal". Not knowing the value of the land in question if it were sold as a whole, without objection, I will estimate $500,000 total, or $250,000 the value for each interest. If the value and ownership of the land in question were ultimately established by partition action which proceeded DALE F. SHUGHART, JR. March 7, 2008 Page 5 through a final litigation of accounting, divisibility, valuation, and ultimate sale, the legal fees and expenses, would, in my opinion, be at least $30,000, and could ce:rta_irly approach $50,000, for the one-half ownership interest in ]dir. den Hartog'~s Estate, and the time period involved could exceed two years. I hope this opinion letter is of some assistance to you. ~. , Very truly yours,; ~~i Dale F. Shughart; Jr. DFS,JR/bc cc Larry Foote ~ ~ ~~o ~ ~a~~t5 ~: ~ ~; N Part of Tax Part:el Number: 30-08-0593-118 ~:~ _ . ,.,~:=: - ~ ~-~ E V o c_, ~ i ~ ~..:: THLS DEED .. w 1_ c ~' ~ [~ .-i p ~ ~ ~ } M i ~ A ~ 4~; .:. ~ ADE th day of , 2006, s 5 BETWEEN GEURT DEN HARTOG and GRADA JOHANNA DEN HARTOG, ;husband and wife, of 299 Bullshead Road, Newville, Pennsylvania, "GRANTORS", AND GEURT DEN HARTOG and GRADA JOHANNA DEN HARTOG, ]zusband and wife, of 299 Bullshead Road, Newville, Pennsylvania, to each an undivided one-half I;1/2) interest as Tenants in Common (and not as Tenants by Entireties or Joint Tenants with Right of Survivorship), "GRANTEES". WITNESSETH, that in consideration of the sum of ONE AND 00/100 {$1.00) Dollar, in hand paid, the receipt whereof is hereby acknowledged, the said GRANTORS do hereby grant and convey in fee simple to said GRANTEES, their heirs and assigns; each. to an undivided one-half (1/2) interest as Tenants in Common (and not as Tenants by Entireties or Joint Tenants with Right of Survivorship), ALL that certain lot or tract of land situate in North Newton Township, Cumberland County, Pennsylvania, as is more particularly bounded and described as follows: BEGINNING at a set railroad spike along the centerline of Bul:lshead Road (S.R. 4015) along the dividing line of Lot 7 on the hereinafter referenced plan; thence along said dividing line the following courses and distances: 1)1`forth O1 degree 19 minutes 58 seconds West 285.75 feet to a set concrete monunent; 2) North 88 degrees 40 minutes 02 seconds East 304.88 feet to a set concn~e monument; 3) South Ol degrees 19 minutes 58 seconds East 285.76 feet to a set railroad spike in along the centerline of Bullshead Road (S.R. 40I5); thence alonf; the centerline of 900 2'~4 ~~~885 Bullshead Road (S.R. 4015) South 88 degrees 40 minutes 29 seconds West 32.15 feet to an existing railroad spike; thence continuing along the same, South 88 degrees 40 minutes 02 seconds West 272.73 feet to a set railroad :~pdce, the point and place of BEGINNING. CONTAINING 2.0000 acres and being Lot 6 on the Minor Subdivision Plan for Geurt DenHartog, prepared by Eric L. Diffenbaugh, dated December 1, 2004 and recorded March 16, 2005 in the Office of the Recorder of Deeds in and for Cumberland County, in Plan Book 90, Page 88. TOGETHER with and under and subject to notations as shown on said plan. UNDER AND SUBJECT to existing covenants, agreements, conditions, easements, restrictions and rights of record, to the extent valid and enforceable and still applicable to the above described premises. BEING the same premises which Geurt den Hartog and Gnida Johanna den Hartog conveyed to Geurt den Hartog and Grada Johanna den Hartog, by deed dated May 20, 2005, and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Deed Book 268, Page 4972. THIS IS A CONVEYANCE FROM HUSBAND AND WIFE T0~ HUSBAND AND WIFE AND IS THEREFORE EXEMPT FROM REALTY TRANSFER TAX. AND, the said GRANTORS hereby warrant specially the propert}~ herein conveyed. IN WITNESS WHEREOF, the said GRANTORS do hereby set their hands and seals the day and year first above written. Witness: ~ ~,..~ cam. (SEAL) U GEUR DEN HARTOGM --~;}-~t7 `~ ~1J;"i.- ~ _ C~"''' ~L~ (SEAL) GRADA JOHANNA DEN I3ARTOG lit ~4 COMMONWEALTx OF PENNSYLVANIA: ss. COUNTY OF Cw,~ ~ ~ ~ ~ On this the 5 ~ day of YIA R ~ , 2006, before m.e, the undersigned officer, personally appeared GEURT DEN HARTOG and GRADA JOHANNA :DEN HARTOG, known to me (or satisfactorily proven) to be the persons whose names are subscribexi to the within instnunent, and acknowledged the foregoing deed to be their act and deed and desired the same to be recorded as such WITNESS my hand and official seal the day and year first above ~Nritten. COMMONWEgtTii OF PENNSYLVANiq Sh Narrulbn C. Delis' NAY PubNc Member, Penns ~ ~~ ~ - (Seal) Y-vania gssodat-on O/ Notarres Notary' Public CERTIFICATE OF RESIDENCE I do hereby certify that the precise residence and complete post office address of the within named GRANTEES is: 299 Bullshead Road, Newville, PA 17241. i ~ S , 2006 ~ t' Attorney or Grant Hamilton C. Davis, Esq. P O Box 40 ~ Certify thi;~ to be recorded Shippeusburg, PA ( 7 (71'n532-5713 Tn Cumberland County PA ., L ~`~~i ~~`' e;carder of Deeds Boas 4 ~~~~ S ~f~ . APPRAISAL REPORT METAL STORAGE BUILDING 299 BULLSHEAD ROAD NEWVIIILE, PENNSYLVANIA PREPARED FOR THE ESTATE OF GEURT DEN HART(~G BY LARRY E. FOOTS DIVERSIFIED APPRAISAL SERVICES 35 EAST HIGH STREET, SITITE 1C-1 CARLISLE, PENNSYLVANIA 17013-3052 (717) 249-2758 COPY SUMMARY OF Il~ZPORTANT FACTS AND CONCLUSIONS LOCATION: TAX PARCEL NUMBER: DESCRIl'TION: 299 Bullshead Road Newville, Pennsylvania 30-08-0593-118 A one-story detached metal stor~~ge building on a two- acre tract of vacant land. PROPERTY RIGHTS: Fee simple interest. OWNERSHIl' HISTORY: The subject property is owned b}~ Geurt den Hartog and Grada Johanna den Hartog. No ~~ale of this property has taken place during the past three years. SCOPE OF THE ASSIGNMENT: The scope of the assignment included an analysis of the subject's area, an inspection of the subject property, an estimation of the property's highest and best use, consideration of all three approaches to value, and the application of those relevant 1:o the valuation of the subject. OBJECTIVE: To estimate the market value of the subject property as unencumbered. EFFECTIVE DATE: As of January 12, 2008. HIGHEST AND BEST USE: Use as a storage building. COST APPROACH: N.A. SALES APPROACH: $76,000 INCOME APPROACH: N.A. FINAL VALUE CONCLUSION: $76,000 2 APPRAISAL CERTIFICATION I hereby certify that upon application for valuation by: THE ESTATE OF GEURT DEN HARTOG the undersigned personally inspected the following described propem~: All that certain piece or parcel of land situate in North Newton Township, Cumberland County, Pennsylvania, bounded and described as follows: Beginning at a set railroad spike along the centerline of Bullsl7~ead Road along the dividing line of Lot 7 on the hereinafter referenced plan; thence along said dividing line the following courses and distances: 1} North Ol degree 19 minutes 58 seconds West 285.75 feet to a set concrete monument; 2}North 88 degrees 40 minutes 02 seco~ids East 304.88 feet to a set concrete monument; 3) South O1 degree 19 minutes 58 seconds East 285.76 feet to a set railroad spike in the centerline of Bulkhead Road; thence along the centerline of Bulkhead Road South 88 degrees 40 minutes 29 seconds West 32.15 feet to an existing railroad spike; thence continuing along he same, South 88 degrees 40 minutes 02 seconds West 272.73 feet to a set railroad spike, the point and place of beginning. Containing 2.OCI acres and being Lot 6 on the Minor Subdivision Plan for Geurt den Hartog, recorded in Cumberland County Plan Book 90, Page 88. To the best of my knowledge and belief the statements contained in this report are true and correct, and that neither the employment to make this appraisal. nor the compensation is contingent upon the value reported, and that in my opinion the Market Value as of January 12, 2008 is: SEVENTY-SIX THOUSAND DOLLARS $76,000 The property was appraised as a whole, subject to the contingent and limiting conditions outlined herein- c~~ Larry .Foote Certified General .Appraiser GA-000014-L 3 PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the Market Value of the subject property as of January 12, 2008. Market Value, as defined by the courts, is the most probable price estimated in terms of money which a property will bring if exposed for sale in the open market, allowing a reasonable time finding a purchaser who buys with knowledge of ,x.11 the uses to which it is adapted and for which it is capable of being used. Frequently, it is referred to as the price at which a willing seller would sell and a willing buyer would buy, neither being under abnormal pressure. HIGHEST AND BEST USE Highest and Best Use is defined by the Appraisal Ternninology and Handbook, published by the Appraisal Institute, as "the most profitable likely use to which a property can be put". The opinion of such use may be based on the highest and most profitable continuous use to which the property is adapted and needed, or likely to be in demand, in the reasonable near future. However, elements affecting value that depend upon eve~~ts or a combination of occurrences which, while within the realm of possibility, are not fairly shown to be reasonably probable, should be excluded from consideration. Also, if the intended use is dependent on an uncertain act of another person, the intention cannot be considered. Based on the above definition and after seeing the site, neighborhood, and area, it is my opinion that use of the subject as a storage building is its Highest and :Best Use. 4 SITE DATA ADDRESS: 299 Bulkhead Road TOWNSHIP: North Newton COUNTY: Cumberland STATE: Pennsylvania LOT SIZE: Approximately 2.00 acres of level land. SEWERS: None on site. WATER: None on site. ELECTRICITY: PP&L LANDSCAPING: None ZONING: This municipality has no zoning ordinances. DETRIMENTAL INFLUENCES None. Pride of ownership is evident throughout the neighborhood. BUILDING DESCRIPTION The subject building consists of a one-story detached storage building containing approximately 4,680 square feet of gross building area. This building, which is constructed upon a concrete slab, has exterior walls that are covered with painte;d corrugated steel panels. Roofing is of the gable type, covered with corrugated steel panels. The passage door is of insulated steel and there are three large metal sliding doors that access the work bays. There are two metal-framed windows located in the one end of the building.. The interior of the building is divided into one large L-shaped room and a smaller square-shaped room. The interior has no ceiling, but is open to the roof. The building is heated by afree-standing wood-burning stove. Electricity is distributed b;y an individually metered circuit breaker electrical system. 5 The area around the building is improved with stone parking; areas. All improvements appear to be in average condition on the interior and on the exterior., with mechanical systems appearing to be adequate and functioning properly. 6 THE APPRAISAL PROCESS Three approaches to value are generally included in an appraisal report. These techniques include the cost approach, sales comparison approach, and income approach to value. The cost approach to value is based on the assumption that the reproduction cost of a building plus land value, tends to set the upper limit to value. A key ~~ssumption is that a newly constructed building would have advantages over the existing buildir,~g, therefore an evaluation focuses upon disadvantages or deficiencies (depreciation) of the existing building compared to anew facility. The sales comparison approach to value assumes that under r.~ormal conditions, a given number of parties acting intelligently and voluntarily, tend to set a pattern from which value can be estimated. Application of this approach relies on a comparison of the subject with a sufficient number of recent transactions of comparable properties in the market, based on a common unit, such as price per square foot of building area or price per acre. The income approach concerns itself with present worth of the future potential benefits of a property. The initial estimate involves the net income, which a. fully informed person is justified in assuming the property will produce during its remaining useful life. This estimated net income is then capitalized into a value estimate, based upon the level of risk as compared with that of a similar type and class. Since the subject property consists of a vacant tract of land or existing improvements have insignificant value, in accordance with the departure provision of the Uniform Standards of Professional Appraisal Practice, only the sales comparison approach to value has been applied to the subject property and is subsequently presented. 7 SALES COMPARISON APPROACH In arriving at this conclusion of the value of the subject property, the appraiser made a survey of properties that have sold in the area of the subject property. Consideration was given and adjustments were made on each comparable sale as to time of sale, size, location, as well as all other factors that might affect value. A resume of some of the sales considered by the appraiser is as follows: SALE NO. 1: Location: 106 W. Laumen Street, Mt. Holly Springs. Parcel No.: 23-31-2189-016 Date of Sale: December 6, 2007. Deed Ref.: 200745490 Sale Price: $67,100 Type: One-story 8,550 square foot masonry storage building in fair condition. Land Size: .92 acre. Unit Price: $7.85 per square foot. Grantor: Jimmie E. Overstreet. Grantee: Michael D. and Julie L. Morris. SALE NO. 2: Location: Lots lA and 3A Greenview Drive, Carlisle. Parcel No.: 40-24-0746-051 Date of Sale: January 10, 2007. Deed Ref.: Deed Book 278, Page 1728. Sale Price: $90,000 Type: One-story 2,560 square foot metal storage building in fair condition. Land Size: 1.00 acre. Unit Price: $35.16 per square foot. Grantor: Stanley N. and Susan E. Dye. Grantee: David J. and Joyce A. Raudabaugh. SALE NO. 3: Location: 817 Magara Road, Mechanicsburg. Parcel No.: 09-15-1288-001 Date of Sale: September 28, 2007. Deed Ref.: 200737531 Sale Price: $192,500 Type: One-story 4,800 square foot masonry storage building in avg. condition. Land Size: .45 acre. Unit Price: $40.10 per square foot. Grantor: Don E. and Regina L. Haubert. Grantee: Mark P. Molesevich. 8 The appraiser, in addition to the sales listed, also considered ;several additional sales in arriving at his final opinion of value. On the Sales Comparison Analysis form that follows this page are dollar adjustments reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable properly is superior to, or more favorable than, the subject property, ~~ minus (-) adjustment is made, thus reducing the indicated value of the subject; if a significant item in the comparable is inferior to, or less favorable than, the subject property, a plus (+) adjustment is made, thus increasing the indicated value of the subject. After making all of the necessary adjustments, it is the appraiser's considered opinion that the indicated value of the subject property by the Sales Compari~;on Approach is $76,000. 9 SALES COMPARISON ADJUSTMEN'T'S The appraiser has analyzed comparable sales and has developed dollar adjustments, reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to, or more favorable than the subject property, a minus (-) adjustment is made, thus reducing the indicated value of the subject; if a significant item in the comparable is inferior to, or less favorable than the subject property, a plus (+) adjustment is made, thus increasing the indicated value of the subject. Sale Price Time SALE # 1 67,100 SALE #2 90,000 +4,500 -9,000 SALE #3 192,500 Location Building Size Condition Interior Finish Tenants In Common Discount Net Adjustment Indicated Value: -38,500 -38,700 +21,200 -1,200 +13,420 +9,000 -19,250 -19,250 -40,000 -40,000 -40.000 -65,280 -14 300 -118,200 1,820 75,700 74,300 10 CORRELATION Correlation may be defined as "the bringing together of parts in a proper relationship." The parts of this appraisal report are the following approaches to value your appraiser used: Value Indicated by Cost Approach 11.A. Value Indicated by Sales Comparison Approach $76,000 Value Indicated by Income Approach T1.A. These approaches are representative of the market value of th~~ subject property. I have carefully reexamined each step in each method, and I believe the conclusions accurately reflect the attitude of typical purchasers of this type property in this neighborhood. It is my belief that this reexamination has confirmed the original conclusions. The Sales Comparison Approach was based on several recent sales of properties similar to that of the subject, all of which are located in the same general area. The adjusted sales prices are most consistent under comparison. This approach is the most reliable because it reflects the reactions of typical buyers and sellers in the market. Therefore, as a result of this appraisal and analysis, it is this appraiser's considered judgment and opinion that the Market Value of the subject property, a:s of January 12, 2008, is: SEVENTY-SIX THOUSAND DOLLARS $76,000 11 UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS SUBJECT TO THIS APPRAISAL 1. I assume no responsibility for matters legal in nature, nor do :[ render any opinion as to the title, which is assumed to be marketable. The property is appraised as though under responsible ownership. 2. The legal description used herein is correct. 3. I have made no survey of the property, and the boundaries are taken from records believed to be reliable. 4. I assume that there are no hidden or unapparent conditions of .the property, subsoil or structures which would render it more or less valuable. I assume no responsibility for such conditions or for engineering which might be required to discover such factors. 5. The information, estimates, and opinions furnished to me and contained in this report were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy can be assumed by me. b. This report is to be used in its entirety and only for the I~urpose for which it was rendered. 7. Neither all nor any part of the contents of this report (especi~~lly any conclusions as to value, the identity of the appraiser or the firm with which he is connected) shall be reproduced, published, or disseminated to the public through advertising media, public relations media, news media, sales media, or any other public :means of communication, without the prior written consent and approval of the appraiser. 8. This appraisal was prepared for the exclusive use of the client ;identified in this appraisal report. The information and opinions contained in this appraisal set forth the appraiser's best judgment in light of the information available at the time of the preparation of this report. Any use of this appraisal by any other person or entity, or any reliance or decisions based on this appraisal are the sole responsibility and at the sole risk of the third party. The appraiser accepts no responsibility for damages suffered by any third party as a result of reliance on or decisions made or actions taken based on this report. i2 CERTIFICATE OF APPRAISAL Your appraiser hereby certifies that: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal,, impartial, and unbiased professional analyses, opinions, and conclusions. 3. I have no present of prospective interest in the property that i:; the subject of this report, and no personal interest with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignmen# is r.~ot contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. To the best of my knowledge and belief, the statements of fact contained in this appraisal report, upon which the analyses, opinions, and conclusions expressed herein are based, are true and correct. 8. This appraisal report sets forth all of the limiting conditions (imposed by the terms of my assignment or by the undersigned) affecting the analyses, opinions, and conclusions contained in this report. 9. This appraisal report has been made in conformity with t:he Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation, and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the National Association of Realtors Appraisal Section. 13 10. No one other than the undersigned prepared the analyses, conclusions, and opinions concerning real estate that are set forth in this appraisal report. _/~ La E. Foote Certified General Appraiser GA-000014-L 14 PRIVACY NOTICE Pursuant to the Gramm-Leach-Billey Act of 1999, effective July 1, 2001, appraisers, along with all providers of personal financial services are now required by federal law to inform their clients of the policies of the firm with regard to the priv2~cy of client nonpublic personal information. As professionals, we understand that your privacy is very important to you and are pleased to provide you with this information. In the course of performing appraisals, we may collect what i~; known as "nonpublic personal information" about you. This information is used to facilital:e the services that we provide to you and may include the information provided to us by yoi~ directly or received by us from others with your authorization. We do not disclose any nonpublic personal information obtained in the course of our engagement with our clients to nonaffiliated third parties, except as necessary or as required by law. By way of example, a necessary disclosure would be to our independent contractors, and in certain situations, to unrelated third party consultants who need to know that information to assist us in providing appraisal services to you. All of our independent contractors and any third party consultants we engage are informed that any information they see as part of an appraisal assignment is to be maintained in strict confidence within the firm. A disclosure required by law would be a disclosure by us that is ordered by a court ~of competent jurisdiction with regard to a legal action to which you are a party. We will retain records relating to professional services that we have provided to you for a reasonable time so that we are better able to assist you with your needs. In order to protect your nonpublic personal information from unauthorized access by third parties, we maintain physical, electronic and procedural safeguards that comply with our professional standards to insure the security and integrity of your information. 15 LARRY E. FOOTE REAL ESTATE APPRAISER EXPERIENCE: 1979-Present: Chief Appraiser, Diversified Appraisal Services, C~~rlisle, Pa. Principal Broker, LaRue Development Company, Carlisle, Pa. 1976-1979: Associate Broker, Colonial Realty, Carlisle, Pa. 1972-1976: Realtor Associate, Jack Gaughen Realtor, Carlisle, ]Pa. Appraisal experience included undeveloped land, farms, building lots, single;-family dwellings, mobile home parks, medical centers, nursing homes, motels, apartment buildings and complexes, office buildings, service stations, veterinary clinics, rehabilitation centers, retail buildings, daycare centers, warehouses, and manufacturing facilities. EDUCATION: Bachelor of Business Administration, Pennsylvania State University, 1976. Associate Bachelor of Business Administration, Harrisburg Area Community College, 1974. Diploma, Carlisle Senior High School, 1965. Certificate, Pennsylvania Realtors Institute, GRI I, GRI II, GRI III. Certificate, Realtors National Mazkeiing Institute, CI 101, CI 102, CI 103, CI 104, CI 105. Standards of Professional Practice, American Institute of Real Estate; Appraisers. Real Estate Appraisal Principles, American Institute of Real Estate ~~ppraisers. Residential Valuation, American Institute of Real Estate Appraisers. Appraisal Procedures, Appraisal Institute. Principles of Income Property Appraising, Appraisal Institute. Case Studies in Real Estate Valuation, Appraisal Institute. Report Writing and Valuation Analysis, Appraisal Institute. PROFESSIONAL LICENSES: General Appraiser #GA-000014-L, Commonwealth of Pennsylvania.. Real Estate Broker #RB-029729-A, Commonwealth of Pennsylvani;~. PROFESSIONAL DESIGNATIONS: GRI: Graduate of the Pennsylvania Realtors Institute, awarded by the Pennsyl- vania Association of Realtors. CRS: Certified Residential Specialist, awarded by the Realtors Nai~onal Mazket- ing Institute of the National Association of Realtors. CCIM: Certified Commercial Investment Member, awarded by the Realtors National Marketing Institute of the National Association of Realtors. PROFESSIONAL ORGANIZATION AFFILIATIONS: National Association of Realtors Appraisal Section. Greater Hazrisburg Association of Realtors. Pennsylvania Association of Realtors. National Association of Realtors. Realtors National Mazke;ting Institute. 16 PAST CLIENTS: Borough of Carlisle Keystone Financial Mortgage Cornerstone Federal Credit Union Peruisylvania State Bank Commerce Bank Cumberland-Perry Association for Retarded Citizens Carlisle Suburban Authority Members 1 ~` Federal Credit Union Pennsylvania National Bank Evans Financial Corporation Greenawalt & Company, CPA Smith's Transfer Corporation Carlisle Department of Parks and Recreation Executive Relocation Services Carlisle Area School District Messiah Homes, Incorporated ERA Eastern Regional Services Pennsylvania Turnpike Commission Chase Home Mortgage Corporation Defense Activities Federal Credit Union Pennsylvania State Employees Credit Union PNC Mortgage Corporation F&M Trust Company National City Mortgage Corporation Washington Mutual Home Loans, Inc. Prudential Relocation Services Lender's Choice Market Intelligence, Incorporated United Telephone Employees Federal Credit Union Cumberland County Commissioners Allstate Enterprises Mortgage Corporation Dickinson College PPG Industries, Incorporated Gettysburg College Redevelopment Authority of Cumberland County Record Data Appraisal Services, Incorporated First United Federal Savings Association Fulton Bank United States Marshall Service GMAC Mortgage Corporation Orrstown Bank Letterkenny Federal Credit Union BancPlus Mortgage Corporation Coldwell Banker Relocation Services, Incorporated Central Pennsylvania Savings Bank Mellon Bank Provident Home Mortgage Corporation Various law fines and individuals 17 .\ ]~ 4 . ~ ~~~ ~l PHOTOGRAPH OF THE SUBJECT PROPERTY ~~ t 18 =~ . ...ti, ~~ ~ a, A.~:~'K .a ,~'r COMPARABLE SALE NO. 1 COMPARABLE SALE NO. 2 ~, , _i--~ 19 COMPARABLE SALE NO. 3 raaPau~s~ ~;~ ~G~ ~dle1. ~~ X641 jj ~~7,p 'O =hgry Rd Z 2 6 y~ ~~ a T ~~ S ~? Qa ~i 260& t.SapQu?st inc. 2_ \ti4 . Subject ~~~~ 0 NZa~ ¢ 6 ano m 1204 ft Cyb r`~~ N~,~V ~d 9~~~ ~'~a hiapOata 5~~2068hrYTpp ryr TeIeAYAs 20 DALE F. SHUGHART, JR. ATTORNEY AT LAW 10 WEST HIGH STREET CARLISLE, PENNSYLVANIA 17013 Telephone (71 7) 241 -431 1 Facsimile (717) 241-4021 OF COUNSEL HAMILTON C. DAVIS March 7, 2008 Hamilton C. Davis, Esquire P. O. Box 40 Shippensburg, PA 17257 LEGAL ASSISTANT BONNIE L. COYLE RE: Opinion Letter Estate of Geurt den Hartog The potential expenses and time involved in partition of tenant in common real estate. Dear Hamilton: I am writing in response to your letter of February 25 and the various enclosures regarding Mr. den Hartog';a ownership of a one-half tenant in common interest in two parcel;; of improved real estate, one parcel of approximately two acrE~s with a metal utility building, and another parcel with approx:~mately 34 acres and a home situate on it. You have requested my opinion regarding the potential costs and time delays involved in a court proceeding for partition of tenant in common .real property. As you are awaz-e, I have been involved in a considerable -number of these cases) over the years. I have also acted as Court-appointed Master in several of them. The most recent two contested cases in which. I represented parties were litigated before Judge Bayley, in Cumberland County, who did not refer the cases to a Master. The first case involved partition of several farms which were owned in a partnership, which was dissolved. That case involved two days of hearings before Judge Bayley before it was eventually .settled between the parties. The clients whom I March 7, 2008 Page 2 DALE F. SHUGHART, JR. represented incurred legal fees in excess of $20,000 and appraiser and accountant fees of approximately $10,000. It took approximately two years to litigate the case. If the Court had appointed a Master, the parties would also have paid the Master's fees which would have exceeded $5,000. In this case, once the Court established the value of the land, the parties :•rrked O~~t t~'~eir O~qm agreement aS tO i tS division. The second case in which I was involved was a 100 acre farm which had been owned as tenant in common by husband and wife like the den Hartog case. On the death of the husband the one-half interest went into a Trust. The wife then gifted her one-half interest to one son, who was also a residuary beneficiary of his Father's Trust. This son had been a Trustee, but was removed from that capacity by the Court. This case was in litigation for more than three years and was ultimately decided by Judge Bayley, again, without referring the matter to a Master. The first issue in this case was that the one-half owner son wanted to divide the land in question into two "purparts" of equal value in accordance with the Rules of Civil Procedure. The Court ultimately held that the tract could not be divided in half without spoiling the whole: and established the value of the property. After the Court did ~;o, the one-half owner son purchased the one-half interest of the Trust in accordance with the value established by the Count. As with the partnership case above, this case also involved "accounting issues" as to who owed what to whom for taxes, repairs, etc. In this case, I represented one of the beneficiaries and worked with another attorney who represented the Trust. My fees to my client exceed $10,000. I do not know the other attorney's fees, but he carried the laboring oar, and I would guess them to March 7, 2008 Page 3 DALE F. SHUGHART, JR. be at least $25,000. In addition, with the issues of possible subdivision of the farm into "purparts" we had substantial engineering expenses as well as appraisal fees. My estimate is that those fees paid by my client and the Trust exceeded $15,000. I can therefore comfortably say that approximately $50,000 in fees and expenses were incurred by my client ~~.nd the Trust in resolvir_g this partition actior_. I wish to note that your appraiser, Larry F~~ote, served as an expert witness on behalf of parties in both o:E these partition actions. Currently, I am in the process of filing a ~~artition action in Perry County for a 63 acre piece of woodlot which is owned in fractional interests by ten different people, anti has passed through several estates. My understanding at th:~s point is that I will be representing eight of the ten people f~_ling an action in partition against the other two. I am being ~~aid by one of the owners who agreed to pay all of the legal feE:s. Some of the fractional interests go out six numbers behind tYie decimal point, since interests have passed through a number of estates. I have been working on this case for a year and my client has already paid me fees of approximately $5,000. I have estimated, on the low end, that my additional legal fees will be at least another $5,000, and could be higher depending upon what we get into in terms of litigation. In this particular case, I cannot imagine. that anyone will push the issue of dividing the land into "purparts", and therefore expect the primary issue to be establishing the value. Based upon the foregoing, if there is a divergence of opinion between Mr. den Hartog's Estate and Mrs. den Hartog, as occurred in the second case referenced above, three different types of issues. can occur: DALE F. SHUGHART, JR. March 7, 2008 Page 4 1. Disputes over apportionment of taxes, ir.~surance, repair costs, and mortgage payments, which are especially tricky if some parties are in possession of the property, and other parties are not in possession thereof. 2. Issues regarding whether the property ca.n be divided into separate parcels either of equal value, or of sufficiently acceptable value, if ali parties ate iii agreement, that tree ~7aitY' receiving the less valuable land, can be paid dollars called "owelty" to equalize the distributions. 3. The third issue becomes valuation, which ultimately is established by the Court. A fourth scenario can arise, which I have been involved in twice, once as court-appointed Master, and once as attorney for one of the parties. If the defendants own more than 500 of the value of the real estate, they are entitled to purchase the minority interest for the value set by the Court_ However, if the defendants do not own the majority interest, 1~he property is offered for auction limited to the parties themse:Lves, with the minimum bid being the value established by the Court. If that stage is reached, a whole additional layer of expE~nses are incurred. How much people are willing to invest in litigation does generally have some relationship to the value of t:he land in question. However, as we all know, it only takes one "hard head" with an underemployed lawyer to decide to pursue a. matter well beyond any "cost/benefit" analysis based on "'principal". Not knowing the value of the land in question. if it were sold as a whole, without objection, I will estimate $500,000 total, or $250,000 the value for each interest. If the value and ownership of the land in question were ultimately established by partition action which proceeded March 7, 2008 Page 5 DALE F. SHUGHART, JR. through a final litigation of accounting, divisi~~ility, valuation, and ultimate sale, the legal fees and expenses, would, in my opinion, be at least $30,000, and could certainly approach $.50,000, for the one-half ownership interest in r~r. den Hartog's Estate, and the time period involved could exceed two years. I hope this opinion letter is of some assistance to you. Very truly yours ~~ (~ Dale F . Shughart~ err . DFS,JR/bc cc Larry Foote Geurt den Hartog Calculation of Includable Amount Halteman Mortgage Receivable: ate as equal Tenant in Common -See copy of Note 'death = $532,546.25 Brest = $266,273.00 _ $ 875.0() _ $267,148.0() 11 FIL F COP y MORTGAGE NOTE $555,102.13 Harrisburg, Pennsylvania May 20, 2005 FOR VALUE RECEIVED, GARY L. HALTEMAN and JO~~NNE M. HALTEMAN, husband and wife, of 324 Bulkhead Road, Newville, Pennsylvania, (hereinafter, whether one or more, called "Obligor") promises to pay to the order of GEURT den HARTOG and GRADA JOHANNA den HARTOG, husband and wife, as tenants in common.. of 299 Bullhead Road, Newville, Pennsylvania, (hereinafter, whether one or more, called "Obligee"), their heirs and assigns, in lawful money of the United States of America, the sum of FIVE HUNDRED FIFTY- FIVE THOUSAND ONE HUNDRED TWO. AND 13/100 ($555,102.13) Dollars, and any additional moneys loaned or advanced by any holder hereof as hereinafi`er provided; with interest on the outstanding balance at the rate of SIX (6%) percent per annum, payable as follows: Monthly payments of principal and interest in the amount of $3,450.00 to be applif;d first to accrued interest, then to the reduction of principal. Payments shall begin June 20, 2005 and continue on the 20~' day of each month thereafter until May 20, 2020, at which time any outstanding balance of principal and any accrued and unpaid interest shall be due and payable in full. The parties hereto agree that this note will be secured by a mortgage on Obligor's real estate situated in North Newton Township, Cumberland County, Pennsylvania. This Note shall evidence, and the Mortgage given to secure its payment, shall cover and be security for any future loans or advances that may be made to or on behalf of the Obligor by any holder hereof at any time or times hereafter and intended by the Obligor and the then holder to be so evidenced and secured as well as any sums paid by any holder hereon pursuant to the terms of the Mortgage and any such loans, advances or payments shall be added to and shall bear interest at the same rate as the principal debt, which interest rate shall be payable until the obligation is paid in full (even after judgment). In case default be made for the space of thirty (30) days in the pa}rment of any installments of principal, or interest, or in the performance by the Obligor of any of thf; other obligations of this Note or the Mortgage, the entire unpaid balance of the principal debt, additional loans or advances and all other sums paid by any holder to or on behalf of the Obligor pur;~uant to the terms of this Note or the Mortgage, together with unpaid interest thereon, shall at the option of the holder and without notice become immediately due and payable, and one or more executions may forthwith issue on any judgments obtained by virtue hereof; and no failure on the part of any holder hereof to exercise any of the rights hereunder shall be deemed a waiver of any such rights or of any default hereunder. The Obligor hereby empowers any attorney of any Court of record within the United States of America or elsewhere to appear for the Obligor and, with or without complaint filed, confess i judgment, or a series of judgments, against the Obligor in favor of an;y holder hereof, as of any term, for the unpaid balance of the principal debt, additional loans or advances and all other sums paid by the holder hereof to or on behalf of the Obligor pursuant to the; terms of this Note or the Mortgage, together with unpaid interest thereon, costs of suit and an attorney's commission for collection of ten (10%) percent of the total indebtedness, on which judgment or judgments one or more executions may issue forthwith upon failure to comply with any of the terms and conditions of this Note or the Mortgage. The Obligor hereby forever waives all ri€;ht to request judgment be stricken or opened as well as the necessity of filing any affidavit of non-military service. In addition, the Obligor waives all notice of levy as well as any right to request a release from levy from any and all real and personal property levied upon or attached. The Obligor waives all defects or irregularity in any writ of execution, levy, foreclosure or service as well as all legal and equitable grounds for stay or setting aside of execution or foreclosure. In addition, the Obligor waives all notice of sale and all rights to petition to set aside any Sheriffs or executing officer's sale and waives all rights to make exceptions to any Sheriff s or executing officer's distribution. The Obligor further waives the benefit of all appraisement, stay and exemption la`vs and all bankruptcy or insolvency laws now in force or hereinafter passed, any law, usage or custom to the contrary notwithstanding. This obligation shall bind the Obligor and Obligor's heirs, executors, administrators, successors and assigns, and the benefits hereof shall inure to the Obligee hereof and their heirs and assigns. If this Note is executed by more than one person, the undertakings and liability of each shall be joint and several. This Note is secured by a Mortgage of even date herewith upon real estate described therein. Witness: (SEAL) Gary L. Halteman Joanne M. Halteman 2 (SEAL) 05/17/21)05 1 ~"'I ~~8 Halteman-den Hartog Mortgage __. Compound Period ......... Monthly Nominal Annual Rate .... 6.000 CASH FLOW DATA Event Date Amount Number Period End Date 1 Loan 05/20/2005 555,102.13 1 2 Payment 06/20/2005 3,450.00 179 Monthly 04/20/2020 3 Payment 05/20/2020 362,398.07 1 AMORTIZATION SCHEDULE -Normal Amortization Date Payment Interest Principal Balance Loan 05/20/2005 555,102.13 1 06/20/2005 3,450.00 2,775.51 674.49 554,427.64 2 07/20/2005 3,450.00 2,772.14 677.86 553,749.78 3 08/20/2005 3,450.00 2,768.75 681.25 553,068.53 4 09/20/2005 3,450.00 2,765.34 684.66 552,383.87 5 10/20/2005 3,450.00 2,761.92 688.08 551,695.79 6 11/20/2005 3,450.00 2,758.48 691.52 551,004.27 7 12/20/2005 3,450.00 2,755.02 694.98 550,309.29 2005 Totals 24,150.00 19,357.16 4,792.84 8 01/20/2006 3,450.00 2,751.55 698.45 549,610.84 9 02/20/2006 3,450.00 2,748.05 701.95 548,908.89 10 03/20/2006 3,450.00 2,744.54 705.46 548,203.43 11 04/20/2006 3,450.00 2,741.02 708.98 547,494.45 12 05/20/2006 3,450.00 2,737.47 712.53 546,781.92 13 06/20/2006 3,450.00 2,733.91 716.09 546,065.83 14 07/20/2006 3,450.00 2,730.33 719.67 545,346.16 15 08/20/2006 3,450.00 2,726.73 723.27 544,622.89 16 09/20/2006 3,450.00 2,723.11 726.89 543,896.00 17 10/20/2006 3,450.00 2,719.48 730.52 543,165.48 18 11/20/2006 3,450.00 2,715.83 734.17 542,431.31 19 12/20/2006 3,450.00 2,712.16 737.84 541,693.47 2006 Totals 41,400.00 32,784.18 8,615.82 20 01/20/2007 3,450.00 2,708.47 741.53 540,951.94 21 02/20/2007 3,450.00 2,704.76 745.24 540,206.70 22 03/20/2007 3,450.00 2,701.03 748.97 539,457.73 23 04/20/2007 3,450.00 2,697.29 752.71 538,705.02 24 05/20/2007 3,450.00 2,693.53 756.47 537,948.55 25 06/20/2007 3,450.00 2,689.74 760.26 537,188.29 26 07/20/2007 3,450.00 2,685.94 764.06 536,424.23 27 08/20/2007 3,450.00 2,682.12 767.88 535,656.35 28 09/20/2007 3,450.00 2,678.28 771.72 534,884.63 29 10/20/2007 3,450.00 2,674.42 775.58 534,109.05 30 11/20/2007 3,450.00 2,670.55 779.45 533,329.60 Y 05/17/2005 12:19:58 PM Page 2 Halteman-den Hartog Mortgage Date Payment Interest Principal Balance 31 12/20/2007 3,450.00 2,666.65 7f33.35 532,546.25 2007 Totals 41,400.00 32,252.78 9,1 ~t7.22 32 01 /20/2008 3,450.00 2, 662.73 787.27 531, 758.98 33 02/20/2008 3,450.00 2,658.79 701.21 530,967.77 34 03/20/2008 3,450.00 2,654.84 7C)5.16 530,172.61 35 04/20/2008 3,450.00 2,650.86 709.14 529,373.47 36 05/20/2008 3,450.00 2,646.87 8C13.13 528,570.34 37 06/20/2008 3,450.00 2,642.85 8CI7.15 527,763.19 38 07/20/2008 3,450.00 2,638.82 811.18 526,952.01 39 08/20/2008 3,450.00 2,634.76 815.24 526,136.77 40 09/20/2008 3,450.00 2,630.68 819.32 525,317.45 41 10/20/2008 3,450.00 2,626.59 82'3.41 524,494.04 42 11/20/2008 3,450.00 2,622.47 82'7.53 523,666.51 43 12/20/2008 3,450.00 2,618.33 831.67 522,834.84 2008 Totals 41,400.00 31,688.59 9,711.41 44 01/20/2009 3,450.00 2,614.17 835.83 521,999.01 45 02/20/2009 3,450.00 2,610.00 840.00 521,159.01 46 03/20/2009 3,450.00 2,605.80 844.20 520,314.81 47 04/20/2009 3,450.00 2,601.57 848.43 519,466.38 48 05/20/2009 3,450.00 2,597.33 852.67 518,613.71 49 06/20/2009 3,450.00 2,593.07 856.93 517,756.78 50 07/20/2009 3,450.00 2,588.78 861.22 516,895.56 51 08/20/2009 3,450.00 2,584.48 865.52 516,030.04 52 09/20/2009 3,450.00 2,580.15 869.85 515,160.19 53 10/20/2009 3,450.00 2,575.80 874.20 514,285.99 54 11/20/2009 3,450.00 2,571.43 878.57 513,407.42 55 12/20/2009 3,450.00 2,567.04 88.2.96 512,524.46 2009 Totals 41,400.00 31,089.62 10,31 X0.38 56 01/20/2010 3,450.00 2,562.62 887.38 511,637.08 57 02/20/2010 3,450.00 2,558.19 891.81 510,745.27 58 03/20/2010 3,450.00 2,553.73 8913.27 509,849.00 59 04/20/2010 3,450.00 2,549.25 901).75 508,948.25 60 05/20/2010 3,450.00 2,544.74 90;x.26 508,042.99 61 06/20/2010 3,450.00 2,540.21 90!x.79 507,133.20 62 07/20/2010 3,450.00 2,535.67 91~~.33 506,218.87 63 08/20/2010 3,450.00 2,531.09 91 X3.91 505,299.96 64 09/20/2010 3,450.00 2,526.50 923.50 504,376.46 65 10/20/2010 3,450.00 2,521.88 92F3.12 503,448.34 66 11/20/2010 3,450.00 2,517.24 93~?.76 502,515.58 67 12/20/2010 3,450.00 2,512.58 937.42 501,578.16 2010 Totals 41,400.00 30,453.70 10,94Ei.30 68 01/20/2011 3,450.00 2,507.89 942.11 500,636.05 69 02/20/2011 3,450.00 2,503.18 94Ei.82 499,689.23 70 03/20/2011 3,450.00 2,498.45 951.55 498,737.68 71 04/20/2011 3,450.00 2,493.69 95Ei.31 497,781.37 C D s - ~~eur ~ dPN, /~a~~°9 Maturity Qate Amount Name of Institution Account # Term APY 2117/08 30,000 v' Sovereign Bank 2895268692 12 month 5.10 2/29/08 30,000 ~ M & T Bank 31003916163709 13 month 5.10 6/30/08 50,000 Susquehanna Bank 60000648109 13 month 5.50 6/30/08 30,000 M & T Bank 31003918358508 13 month 5.00 1!8/09 25,000 Orrstown Bank 4000002936 60 month 4.40 1!13/09 25,000 Orrstown Bank 4000002976 60 month 4.40 9/5/09 30,000 Farmers National Bank of Newville 160451 60 month 4.33 313/10 50,000 Susquehanna Bank 60002970758 35 month 5.15 3/29/10 20,000 Susquehanna Bank (community Banks) 405100003640 33 month 5.30 6/16/10 60,000 Farmers National Bank of Newville 165270 60 month 4.59 ~,~~~ ~ ~~ Page 1 ACCOUNT N0. AOOOUNT TYPE 98236857 M8T SELECT WITH INTEREST 00 0 06128M NM I17 29886 GEURT DENHARTOG OR GRADA J DEN HARTOG 299 BULLS HEAD RD NEWVILLE PA 17241-9121 INTEREST PAID YEAR TO DATE 150.81 ACCf111NT CIIMMARV STATEMI=NT PERIOD PAGE DEC.19-,.IAN.18,2008 1 OF 2 CARLISLE WEST BEGINNING' BALANCE DEPOSITS & OTHER ADDITIONS CHECKS PAID OTHER SUBTRACTIONS CURRENT INTEREST P.D ENDING BALANCE N0. AMOUNT N0. AMOUNT N0. AMOUNT. 48,275.77 2 5,451.19 8 3,532.30 4 850.28 150.81 49,495.19 errniitiT nrTr~irTv POSTING DATE ------ - TRANSACTION DESCRIRTION ------- - DEPOSITS,INTEREST & OTHER ADDITIONS CHECKS 8 OTHER SUBTRACTIONS DAItY BALANCE 12-19-07 BEGINNING BALANCE $48,275.77 12-20-07 ATG MONTHLY DDA TO DDA 3,450.00 ~ 51,725.77 12-28-07 CHECK NUMBER 0338 300.00 51,425.77 12-31-07 EMBARQ Telecom 35.42 ~ 12-31-07 PP ELEC BILL 11.72 ~ 51,378.63 01-03-08 PP ELEC BILL 190 54 O1-03-08 ~ CHECK NUMBER 0333 ? r~'i~`i%~l.~l . 10.00 51,178.09 01-08-OS CHECK NUMBER 0343 22.50 ,~ 51,155.59 01-10-08 PFBMSC HEALTH PREMIUM 612.60 / 01-10-08 CHECK NUMBER 0341 550.00 49,992.99 01-14-08 CHECK NUMBER 0340 1,450.00 01-14-08 CHECK NUMBER 0345 500.00 ~ 48,042.99 O1-15-08 CHECK NUMBER 0344 499.80 /` 47,543.19 01-17-08 SOC. VERZ. BANK PENSION 2,001.19 "/ 01-17-08 CHECK NUMBER 0346 / 200.00 ~ 49,344.38 01-18-08 INTEREST PAYMENT 150.81 ! 49,495.19 ENDING BALANCE $49,495.19 __.. CHECKS PAID SUMMARY 333 01-03-08 10.00 338* 12-28-07 300.00 340* 01-14-08 1,450.00 341 01-10-08 550.00 343* 01-08-08 22.50 344 01-15-OS 499.80 345 01-14-08 500.00 346 01-17-OS 200.00 ANNUAL PERCENTAGE YIELD EARNED = 3.56 LOOBA (607) LAST WILL AND TESTAMENT of GEURT den I-IARTOG I, GEURT den HARTOG, of North Newton Township, Cumberland County, Pennsylvania, declare this to be my Last Will and Testament and revoke any Will or Codicil previously made by me. ITEM I: I direct that all my just debts (except as may lie barred by a Statute of Limitations) and my funeral expenses (including my gravemarker and expenses of my last illness) shall be paid from my residuary estate as soon as practicable after my decease as a part of the administration of my estate. ITEM II: I bequeath those articles of my household furniture and furnishings and those articles of my personal effects and personal property as I have or may set forth in a separate memorandum (which is or will be signed by me, dated and make specific reference to this Will and memorandum, which I shall place with my Will or deposit with my attorney), to the persons therein designated. ITEM III. If my wife, GRADA J. den HARTOG, survives me, I devise and bequeath to my Trustee, IN TRUST, to hold and distribute the principal and to pay the net income, as a Qualified Domestic Trust under Item IV below, the smallest fractional share of principal of my estate which, when added to (i) all assets otherwise passing or having passed to my said wife which are includable in my gross estate and qualify for the marital deduction under section 2056(d)(2)(A) of the Internal Revenue Code (herein the IRC), and (ii) all assets otherwise ~, G, ~t. passing or having passed to my said wife which are added to a Qualified Domestic Trust by other provisions hereof or by my wife under section 2056(d)(2)(B) of the IRC, will reduce the Federal Estate Tax payable because of my death to the minimum, ai~er taking into account all other deductions allowed on my Federal Estate Tax Return and all ~~redits against the Federal Estate Tax, including the unified credit and the state death tax credit; provided that the state death tax credit shall not be taken into account to the extent that it `would increase state death taxes. The formula contained herein shall be determined as though my personal representative makes an election as provided in section 2056A(d) of the IRC with respect to the Qualified Domestic Trust and all property added to a Qualified Domestic Trust by my said wife. Any provision of this Will which may appear to conflict with my intention to reduce the Federal Estate Tax to the ininiinum shall be construed so as to accomplish that intention. All property allocated to or held in the Qualified Domestic Trust shall qualify for the marital deduction. In addition, if assets of such trust at any time consist substantially of unproductive property, my said wife may require that my Trustee either make the property productive or convert it within a reasonable time to productive property. No property which will produce a credit for foreign death taxes shall be allocated to the Qualified Domestic Trust unless necessary to fund it fully. ITEM IV. Qualified Domestic Trust. As to the principal passing hereunder, I direct my Trustee: A. To pay the net income at least quarterly to my wife, G:RADA J. den HARTOG, for her life. My United States Trustee may make distributions from principal to my said wife on account of hardship, as that term is defined in Section 2056A(b)(3)(B) of the x.K. 2 IRC, and any regulations thereunder, after first considering funds reasonably available to her from other sources. In addition, my United States Trustf°e may pay to or apply for the benefit of my said wife as much of the principal as my United States Trustee deems advisable for her maintenance, health and support after first considering funds available to her from other sources. B. Upon the death of my said wife: 1. To pay any accumulated and undistributed net income to the personal representative of my said wife's estate. 2. To deduct and pay any death tax imposed by the United States of America on the principal passing under this trust. 3. To pay the remaining principal as provided for in Item VII hereof. C. My United States Trustee: 1. May withhold from any payment of principal tinder subparagraph (A) an amount equal to any death tax imposed on such distribution under section 2056A(b) of the IRC and shall pay any federal estate tax imposed under section 2056A(b)(1) of the IRC upon property passing herf;under as the result of a taxable event (as defined in section 2056A(b)(9) of the: IRC) out of the principal subject to such tax. 2. May serve as Designated Filer and may allocate: any Deferred Tax due on any Qualified Domestic Trust in the Designated File°r's sole discretion. If a United States Trustee appointed hereunder is not the Designated Filer, my United ~' 3 States Trustee shall provide to the Designated Filer all necessary information relating to distributions of principal made from the Qualified Domestic Trust during the tax year to my said wife and shall pay any and all Deferred Tax allocated to the Qualified Domestic Trust by the Designated Filer. 3. Shall file any and all statements necessary to avoid disqualifying the Qualified Domestic Trust for the federal estate tax marital deduction. 4. Shall file all tax returns required by section 2056A(b)(1) of the IRC with respect to the Qualified Domestic Trust and shall pay all tax so imposed on such trust. D. I release my Trustee from any personal liability for any federal estate tax imposed on the Qualified Domestic Trust and authorize my Trustee to make application to the Secretary of the Treasury for release of such personal liability under section 2204 of the IRC. E. It is my intention that this Qualified Domestic Trust qualify for the federal estate tax marital deduction under sections 2056(d) and 2056A of the IRC. If my Trustee determines that any provision or the absence of any provision herein will cause the Qualified Domestic Trust not to qualify for the marital deduction, My Trustee may reform the Qualified Domestic Trust, in whole or in part, solely to accomplish such intention by amending the Qualified Domestic Trust or by a timely judicial proceeding, the method of reformation to be determined by my Trustee, in Trustee's sole discretion. Any such reformation by amendment shall be by instrument in writing signed by all ~'_ b .y 4 Trustees then serving and consented to by my said wife. Any reformation by judicial proceeding shall be in the form of a decree of the court having jurisdiction over the Qualified Domestic Trust, upon petition by all Trustees then serving and after such notice to such parties in interest as such court may direct. ITEM V. Residu Share. I devise and bequeath the remainder of my estate of every nature and wherever situate to my wife, GRADA J. den HARTOG, providing she shall survive me by thirty (30) days. I remind my said wife (and her personal representative, guardian, agent acting under a power of attorney or other representative) that she may disclaim any part or all of this gift passing to her hereunder or otherwise as a result of or by virtue of my death. In particular, it may be desirable for her to disclaim a portion of this gift, or of other property passing otherwise by reason of my death, and if she does so (either personally or by her personal representative, guardian or agent acting under a power of attorney), the disclaimed property or portion shall pass (except as may be specifically provided otherwise elsewhere in this Will or any other applicable and relevant document), as a part of and under the provisions of the Trust established in Item VI hereof. ITEM VI If my wife, GRADA J. den HARTOG, disclaims any property or any portion of any property which would otherwise pass to her as a result of or by virtue of my death, the disclaimed property or portion thereof shall pass to my Trustee hereinafter named and be held in a separate Trust (referred to herein as a "By-Pass Trust"). This By-Pass Trust created by the provisions hereof shall be held, administered and distributed in accordance with the following terms and provisions and for the following uses and purposes: ~j d.~s. 5 A. To pay the net income therefrom to my wife, GRADA J. den HARTOG, for and during her lifetime. B. As much of the Principal of this Trust as Trustee in Trustee's sole discretion may from time to time think advisable for the health, education and support in reasonable comfort of my wife, GRADA J. den HARTOG, and my children and my grandchildren (and their spouses) and for the protection and preservation of her or their property may either be paid to him/her or them or else applied directly for her or their benefit by Trustee after taking into account her or their other readily available assets and sources of income. C. Trustee may apply the net income and maintenance in reasonable comfort of my wife, GRADA J. den HARTOG, my children, my grandchildren (or their spouses) should she or they by reason of age, illness or other cause in the opinion of Trustee be incapable of appropriately receiving or disbursing it. D. Upon the death of my wife, GRADA J. den HARTOG, the then remaining principal and any undistributed income shall be distributed as is provided for in Item VII hereof. ITEM VII. In the event that my wife, GRADA J. den HARTOG, shall not survive me (and she shall be presumed to have survived me if there is insufficient evidence to show which of us survived), I give, devise and bequeath all of my estate of every nature and wherever situate to my son, GERARD J. den HARTOG. It is my direction to my son, GERARD, but it shall not be a charge upon any of the assets passing to him, that he pay the sum of Five Thousand Dollars ~ .~- ~` 6 ($5,000.00) per year to my son, DIRK den HARTOG, for so long as Dirk shall live, but not more than twenty (20) years. If my son, GERARD J. den HARTOG, shall not be living at the time of the death of the survivor of me and my wife, GRADA J. den HARTOG, but should he be survived by then living descendents, I devise and bequeath all of my estate to my Trustees to beheld and administered and disbursed, IN TRUST, as follows: A. My Trustees shall hold in a separate sub-Trust an amount of principal (as determined by my Trustees) adequate to make the Five Thousand Dollars ($5,000.00) per year annual payments to my son, DIRK den HARTOG, for his life, but not more than twenty (20) years. Upon the death of my son, DIRK den HARTOG, or the elapse of twenty (20) years, any remaining portion of this sub-Trust shall be added to and treated as a part of the principal of the Trust(s) specified in Sub-paragraph B below. B. The remainder thereof shall be divided into shares so as to provide one share, per stirpes, for the then living descendents of my deceased child (GERARD J. den HARTOG). These shares shall be held, administered and disbursed as follows: 1. My Trustee shall accumulate the net income and expend and apply so much of the net income, accumulated income, and principal of the trust as trustee in its sole discretion deems advisable to or for the benefit of such person for the support, education and health of such person and for the protection and preservation of his property until such person attains the age of eighteen years. 2. Upon such person's attaining the age of eighteen (18) years, my Trustee shall distribute the net income of such person's trust to him or for his benefit and so 7'~N 7 much of the principal as trustee in its sole discretion deems advisable for the support, education and health of such person and for the protection and preservation of his property shall be distributed to such person or for his benefit. Such person shall be entitled during his lifetime, to withdraw sums of principal from his trust in accordance with the following fornlula: a. At any time after attaining the age of twenty-five (25) years and prior to attaining the age of thirty (30) years, such sums as shall not exceed one-half (1/2) of the market value of the principal as constituted on his twenty-fifth (25th) birthday or on the creation of his separate trust, whichever shall last occur; b. At any time after attaining the age of thirty (30) years, any and all principal remaining. c. Upon the death of any person, his trust shall terminate and the then remaining principal shall be distributed, per stirpes, to his then living issue, or, if there shall be no such issue, to my then living issue, in equal shares, per stirpes. ITEM VIII. Priority of Distributions. It is my intention that with regard to any discretionary distribution hereunder of principal or income to a beneficiary under this Will, my Trustee shall consider funds available to such beneficiary from all sources and the tax effect of distributions from each of those sources. My Trustee may make a distribution from any Trust hereunder on the basis of Trustee's ~ ~-k. 8 determination, in my Trustee's sole discretion, that a more favorable tax effect would result if such distribution were made from one trust rather than another. ITEM IX. Disclaimer. Except as is specifically provided in Item VI above, if any person otherwise entitled to take hereunder (or such person's legal representative) files a written disclaimer, in whole or in part, with respect to any provisions of this Trust with my Trustee within the period allowed by section 2518 of the IRC, such person (i) shall be treated as having predeceased me for purposes of holding or distributing the disclaimed share, and (ii) shall not participate in any decision to pay or apply the income or principal of the disclaimed share to or for the benefit of any person hereunder, but such person shall not be treated. as having predeceased me for purposes of holding, distribution or participating in any such decision under any provision to which the disclaimer does not extend. ITEM X. Spendthrift Provision. Until distributed, no gift or beneficial interest shall be subject to anticipation or to voluntary or involuntary alienation. ITEM XI. Death Taxes. A. All death taxes (and interest and penalties thereon) imposed as a result of my death upon the property passing under my Will, and upon proceeds of insurance on my life, but not otherwise, shall be paid out of the principal of the Residuary Trust, each share thereof, whether outright or in Trust, to bear a pro rata portion of such taxes; provided that any death taxes imposed upon property, including proceeds of ~r'.aH 9 insurance, passing to my said wife under this Trust, under my Will or otherwise, which will qualify for the marital deduction if added to a Qualified Domestic Trust, shall bear its own share of death taxes to the extent such property is not added to a Qualified Domestic Trust. All Deferred Taxes imposed upon principal of the Qualified Domestic Trust as the result of a taxable event during my said wife's lifetime shall be paid out of the property subject thereto. B. I authorize my Executor to make, in whole or in part, in my Executor's sole discretion, any election or allocation with respect to the Generation-Skipping Transfer Tax under Chapter 13 of the IRC. My Executor shall be without liability to anyone for making or failing to make such election or allocation or the manner in which such election or allocation is made. C. I authorize my Executor to elect, in whole or in part, in my Executor's sole discretion, to treat as qualified terminable interest property for the purposes of qualifying for the marital deduction any property passing under my Will or otherwise in which my said wife has a qualifying income interest for life. My Executor shall be without liability to anyone for making or failing to make such election. D. I authorize my Executor to elect, in my Executor's sole discretion to treat the Qualified Domestic Trust under Item III and IV of this Will and any other qualifying trust consisting of property included under my gross estate as a Qualified Domestic Trust described under section 2056A(a). My Executor shall be without liability to anyone for making or failing to make such election. ~_~. ,~ 10 ITEM XII. Definitions. A. The words "Executor," "Trustee," "Custodian" and "Guardian" when used in this Will include all genders, individuals and corporations and the singular and plural, as the context may require. B. The words "child", "children", "descendant" and "descendants" shall include adopted persons and their descendants. C. The words "incapacitated" and "incapacity" when used in this Will shall refer to an inability to appropriately manage and use funds by reason of age or illness (mental or physical). D. The words "United States Trustee" when used in this Will shall mean an individual who is a citizen of the United States of America with a "tax home" as defined in section 911(d)(3) of the IRC or a domestic corporation as defined in section 7701(a)(4) of the IRC. E. The word "income" when used in this Will with respect to the Qualified Domestic Trust shall mean income as defined in section 643(b) of the IRC except that it shall not include capital gains or other items that would be allocated to principal under the applicable local law governing the administration of the Qualified Domestic Trust without regard to any provision herein to the contrary. F. When a "per stirpes" distribution of income or principal to a designated individual's descendants is provided for under this Will, such income or principal shall be divided into as many equal shares as there are then. living children of such ~ ~,~. 11 individual and then deceased children represented by descendants then living, and each then living child shall receive one share, and the share of each deceased child shall be divided among his or her descendants in the same manner, repeating this pattern with respect to succeeding generations until alit shares are determined. G. All references in this Will to the United States Trustee shall refer to the trustee required under section 2056(a)(1)(A) and (B) of the IRC. H. All references in this Will to the Deferred F,state Tax shall refer to the tax imposed under section 2056A(b)(1). I. Paragraph headings in this Will are used for reference only and shall not affect the meaning, construction or effect of this Agreement of Trust. J. All references in this Will to the Internal Revenue Code (or IRC) shall mean the Internal Revenue Code of 1986, as amended or reenacted, and all corresponding provisions of any subsequent federal tax laws and regulations thereunder. K. For purposes of this Will, the term "death taxes" shall mean Federal Estate Tax, any inheritance or estate tax imposed at death by any state of the United States [or any foreign jurisdiction][ and any excise tax imposed on any qualified plan or IRA under section 4980A of the IRC] [,but shall not include the generation skipping transfer tax imposed under section 2601 of the IRC]. ITEM XIII. Trustee and Executor. A. I appoint my wife, GRADA J. den HARTOG, and my son, GERARD J. den HARTOG, Executors. If either of them fails to qualify or ceases to serve for any d.6~ 12 reason, I appoint HAMILTON C. DAVIS to serve in her or his place. B. I appoint my son, GERARD J. den HARTOG, and HAMILTON C. DAVIS, Trustees of any Trusts created by this Will. If HAMILTON C. DAVIS fails to qualify or ceases to serve for any reason, I appoint JOEL R. ZULLINGER to serve in his place. I hereby authorize my Trustees to appoint a Co-Trustee or Successor Trustee that satisfies, if necessary or desirable, the U. S. Bank as Trustee requirement referenced below. C. I direct that there shall always be a United States Trustee of the Qualified Domestic Trust (herein referred to as the "QDOT"). Such trust shall always be maintained under the laws of the state of the United States or the District of Columbia and the administration of such trust shall always be governed by the laws of a particular state of the United States or the District of Columbia. D. My Trustee shall comply with the requirements for security arrangements for the QDOT as set forth in Treas. Reg. §20.2056A-2(d)(1)(i) or (ii), summarized as follows: 1. If the fair market value of the assets passing, treated or deemed to have passed to the QDOT, determined without reduction for any indebtedness thereon, as finally determined for Federal Estate Tax purposes exceeds Two Million Dollars ($2,000,000) as of the date of my death or, if applicable, the alternate valuation date (as adjusted under and pursuant to Treas. Reg. §20.2056A-2(d)(1)(iv)), then my Trustees must at all times during the term of ~~.e~. 13 the trust either (i) satisfy the U.S. Bank as Trustee requirement of Treas. Reg. §20.2056-2(d)(1)(i)(A); (ii) furnish a bond in favor of the U.S. Internal Revenue Service that satisfies the requirements of Treas. Reg. §20.2056A- 2(d)(1)(i)(B); or (iii) furnish an irrevocable credit that satisfies the requirements of Treas. Reg. §20.2056A-2(d)(1)(i)(C) (hereinafter referred to as the U.S. Bank, Bond or Letter of Credit Requirement). If my Trustee elects to furnish a bond or letter of credit as security, then in the event the Internal Revenue Service draws on such instrument in accordance with its terms, neither the United States nor any other person will seek a return of any part of the remittance until April 15th of the calendar year following the year in which the bond or letter of credit is drawn upon. My Trustee may alternate between any of the security arrangements described above provided that, at all times during the term of such trust, one of the arrangements is, if required, operative. 2. If the fair market value of the assets passing, treated or deemed to have passed to the QDOT, determined without regard for any indebtedness thereon, as finally determined for Federal Estate Tax purposes is Two Million Dollars ($2,000,000) or less as of the date of my death or, if applicable, the alternative valuation date (as adjusted under and pursuant to Treas. Reg. §20.2056A- 1(d)(1)(iv)) then my Trustee must comply with either the U.S. Bank, Bond or Letter of Credit Requirement only if more than thirty-five percent (35%) of the fair market value of the assets of such trust, determined annually on the last day ~ ~~ 14 of the taxable year of such trust, consists of real property located outside the United States. For purposes of determining whether more than thirty-five percent (35%) of the trust assets consist of foreign real property, Treas. Reg. §20.2056A-2(d)(1)(ii)(B) applies. 3. For purposes of determining whether the fair market value of the trust assets exceeds Two Million Dollars ($2,000,000), my Trustee is authorized to make the election under Treas. Reg. §20.2056A-2(d)(1)(iv)(A) with respect to real property used as my spouse's personal residence. 4. For purposes of determining the amount of the bond or letter of credit, my Trustee is authorized to make the election under Treas. Reg. §20.2056A- 2(d)(1)(iv)(B) with respect to real property used as my spouse's personal residence. 5. Notwithstanding anything contained herein to the contrary, my U.S. Trustee is hereby authorized to enter into alternative plans or arrangements with the Internal Revenue Service pursuant to Treas. Reg. §20.2056A-2(d)(4) to assure collection of the deferred estate tax, in lieu of the provisions contained herein. 6. My individual Executors then serving and the individual Trustees of any trust hereunder then serving may unanimously appoint in writing an individual, and/or a corporation described in subparagraph (7) below, to serve with them as co-Executor or co-Trustee. ~. ~. 15 7. Upon the written request of the individual Trustee of any trust hereunder then serving, with the unanimous written consent of those sui juris persons who would receive an interest in principal if it were then distributed to my then living descendants on a per stirpes basis, delivered to the corporate Trustee then serving, the corporate Trustee of such trust shall promptly resign; provided that the individual Trustee, with the written consent of the above described class of persons, shall concurrently appoint a corporation organized under the laws of the United States or any State thereof and possessed of trust powers, which has trust assets of at least One Hundred Million Dollars ($100,000,000), and as to the Qualified Domestic Trust meets the definition of a bank under section 581 of the IRC, as successor corporate Trustee. 8. Any power of removal and appointment under this Paragraph shall not be extinguished by a single exercise; provided that the power to remove a corporate trustee shall not be exercised more frequently than once every five years. 9. Any Trustee while serving hereunder may resign without court approval by written notice delivered to the co-Trustee and all sui juris income beneficiaries. If a Trustee should cease to serve, whether by death or resignation, such Trustee shall be relieved of all liability through the delivery of an account (formal or informal) to the sui juris persons who may then receive the income hereunder and by the signature of a release based on said ~ ~.~• 16 account by such individuals. 10. No Trustee taking office shall be liable in any way for the acts or omissions of any Trustee prior to the Trustee's assuming office and shall have no duty to review the performance of a Trustee prior to that time. 11. Any corporate fiduciary serving hereunder shall receive compensation for its services hereunder in accordance with a fee agreement entered into between it and me during my lifetime, or if there is no such agreement, between it and the individual fiduciaries who are serving with it, which in no event shall exceed its Schedule of Fees in effect from time to time during the period in which its services are performed. In the absence of an agreement between the corporate fiduciary and me, if (i) there is no such agreement then in effect entered into with an individual fiduciary and (ii) there is no individual fiduciary then serving, the corporate fiduciary shall receive compensation in accordance with its Schedule of Fees in effect from time to time during the period in which its services are performed. 12. My Executor and Trustee shall not post security in any jurisdiction. ITEM XIV: If any property passes outright (either under this Will or otherwise) to a minor (which shall be defined as anyone under twenty-one (21) years of age) and with respect to which I am authorized to appoint a guardian and have not otherwise specifically done so, I decline to appoint a guardian but instead authorize my Executor to distribute such property to a Custodian selected by my Executor (and my Executor may act as such Custodian) as Custodian 4 ~ ~~ 17 for the minor under the Pennsylvania Uniform Transfers to Minors Act. Provided, however, that this appointment shall not supersede the right of any fiduciary to distribute a share where possible to the minor or to another for the minor's benefit. ITEM XV: Except as may be limited or provided for by the specific provisions of my Wills, any fiduciary under this Will shall have the following powers in addition to those vested in them by law 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. It is my intention that the powers granted herein shall include and be in supplement to the powers concerning investments contained in PEF Code Chapter 72 (Prudent Investor Rule) and the powers concerning adjustment and conversion to unitrust and related provisions contained in PEF Code Chapter 81 (Uniform Principal and Income Act). To the extent that specific powers granted. to my Trustees by other provisions of this Will are inconsistent with these powers, the specific powers provisions shall control. A. General Management and Investment Powers. The Executor and Trustee shall have full power and authority to manage and control the estate and trust estate, to borrow money from any source (including the power to borrow from a Trustee or any affiliate of a Trustee) and to sell, exchange, lease, grant options, rent, mortgage, pledge, assign, transfer or otherwise dispose of or encumber (including sales to a Trustee) all or any part of the trust estate (for terms extending beyond the termination of the estate or trust estate or otherwise), upon such terms and conditions as the Executor or Trustee may see fit. The Executor or Trustee may invest and reinvest all or any part of the trust estate in such ~',x. ~~ 18 stocks, common and preferred (including the corporate stock of any corporate Trustee, or any of its affiliates), debentures, shares or participations in any common or mutual fund, interests in any general, limited, or limited liability partnership or in any limited liability company, bonds, notes, repurchase agreements and deposit accounts of any kind from or in any bank (including any corporate Trustee, or any of its affiliates), savings and loan association or other financial institution or brokerage firm, stock options and warrants, securities or other property, real or personal, within or without the State of Pennsylvania, domestic or foreign, whether or not of the class or kind now or hereafter ordinarily approved or held to be lawful for the investment of estate or trust funds, as the Executor or Trustee may, in the Executor's or Trustee's discretion, select. The Trustee may make and change such investments from time to time according to the Trustee's discretion, and the Trustee may continue to hold any stocks, securities or other property received by the Trustee hereunder without any duty of diversification. The Executor or Trustee may determine whether any money or other property coming into the Executor's or Trustee's hands, concerning which there may be reasonable doubt, shall be considered as a part of the principal or income of the trust estate, and may apportion between such principal and income any loss or expenditure in connection with the trust estate as to the Trustee may seem equitable, taking account of all present and future interests in the trust estate. The Trustee shall not be obligated to amortize premiums for trust securities out of income nor make additions to income because of the purchase of securities at a discount. The Trustee may exercise all options and all conversion, subscription, voting and other rights ~ ~ , ~!. 19 of whatsoever nature held by or pertaining to any property, including securities of the corporate Trustee or any affiliate thereof, held by the trust estate. Any corporate Trustee shall not disclose the name, address, or share position of t:he beneficial owner(s) of registered securities held by the corporate Trustee or its nominees unless the beneficial owner(s) request otherwise in writing. It is the intention of the Testator that the Trustee shall have the authority to invest in such ways as shall give due consideration for the theories of total return investing, modern portfolio theory, arrd the theory of risk and return. Accordingly, the Trustee is authorized to invest in any type of investment which plays an appropriate role in achieving the investment goals of the Trust, which investment shall be considered as part of the total portfolio. It is my specific direction that no category or type of investment shall be prohibited. I specifically do not wish to limit the universe of Trust investments in any way other than is dictated by the Trustee's exercise of reasonable care, skill, and caution. In connection with the Trustee's investment and management decisions with respect to this Trust, the Trustee is specifically entitled to take in account general economic cond'.itions, the possible effect of inflation or deflation, the expected tax consequences of investment decisions or strategies, the role which each investment or course of action rr.~ay play within the overall trust portfolio which may include financial assets, interests ir.~ closely held enterprises, tangible and intangible personal property, and real property; the expected total return from income and the appreciation of capital; other resources of the beneficiaries; the needs for liquidity; regularity of income and preservation or appreciation of capital; and ~_ ~~~ 20 the asset's special relationship or special value, if any, to the purposes of the Trust or to one or more of the beneficiaries. Nor shall my Trustee be limited to any one investment strategy or theory, including modern portfolio theory, the efficient markets theory or otherwise, but shall be free to consider any appropriate investment strategy or theory under all the circumstances. The Trustee may delegate investment and management functions which a prudent person of comparable skills would properly delegate under the circumstances. Should the Trustee delegate such function, the Trustee shall exercise reasonable care, skill and caution in selecting an agent, establishing the scope and terms of the delegation consistent with the purposes and terms of tl~e Trust, and periodically reviewing the agent's actions in order to monitor performance and compliance with the terms of the delegation. Should such delegation occur as set forth above, the Trustee who complies with the requirements for delegation shall not be liable to the beneficiaries or to the Trusts for the decisions and actions of the agent to which the function was delegated, but by accepting the delegation of a Trust function by the Trustee of this Trust, the agent submits to the jurisdiction of the courts of this state. B. To allocate receipts and expenses to principal or income or partly to each as they from time to time think proper. C. To compromise any claim or controversy. D. To distribute in cash or in kind or partly in each. E. To hold property in their names without designation of any fiduciary capacity or in the name of a nominee or unregistered. ~ _(-~ 21 F. If there is no corporate fiduciary acting hereunder, my fiduciary may designate a corporation (regardless of where organized or headquartered) with fiduciary powers to act as agent or custodian hereunder, may delegate to it such dirties as maybe appropriate (including investment recommendation duties), may pay to it reasonable compensation for its services, and may discharge it with or without cause. G. To treat the entire trust estate as a common fund for the purpose of investment, notwithstanding any provision herein for division thereof into shares or separate trusts. H. Should the principal of any trust herein provided for be or become so small that, in the Trustee's discretion, establishment or continuance of trust is inadvisable, my Trustee or my personal representative may make immediate distribution of the then remaining principal and any accumulated or undistributed income outright to the person or persons then entitled to income and in the proportions they are then entitled to such income. If any such person is then a minor, distribution may be made to that person's guardian, or to a person selected by the trustee to be custodian for such person until the age of twenty-one (21) years under the Pennsylvania Uniform Transfers to Minors Act. I. To continue the operation of any business in which I may bey interested or engaged at the time of my death (regardless of the form or organization of any such business), which business or an interest in which shall be received by my fiduciary. This authorization shall include the right to change the form of any such business by the reorganization or incorporation thereof, or the formation of a general or limited partnership with respect thereto, and shall also include the right to invest in any such ~J4N• 22 business including the right to invest in any business the property of any trust hereunder for such periods of time and upon such terms and conditions as my fiduciary shall deem advisable. No fiduciary shall be liable for any loss resulting; from continuing any such business, but my fiduciary may, in my fiduciary's discretion, sell, liquidate or otherwise discontinue any such business at such time or upon such terms and conditions as my fiduciary shall deem advisable. J. If there are co-fiduciaries serving hereunder, they may delegate any and all management duties and responsibilities to one of them. 1\~y co-fiduciaries may, for example, designate one of them to maintain a bank account or accounts, and in that instance the signature of only that fiduciary shall be required to open and maintain such account, to deposit funds to such account and to write checks on such account. K. Any individual fiduciaries shall have jointly with any corporate fiduciary all the powers given to the fiduciaries, except that no individual fiduciary shall participate in the exercise of any discretion to determine the propriety or amounts of payments of income or principal to himself or herself or to any person to whom he or she is legally obligated, or possess any of the incidents of ownership with respect to any policy of insurance on his or her life, and the remaining fiduciaries alone shall exercise that discretion and possess those incidents of ownership. L. Except as may be limited in Sub-paragraph K above, in the event of any disagreement between or among my fiduciaries, the decision of a majority of my fiduciaries shall control. No fiduciary shall be liable for any loss resulting from a Clay 23 decision in which that fiduciary did not join. M. The sites of any trust created hereunder shall be in the County of Cumberland, and State of Pennsylvania, and all questions pertaining to the construction or validity of the provisions of this instrument shall be governed by the laws of that State (other than its conflicts of laws provisions). IN WITNESS WHEREOF, I hereunto set my hand and seal to this my Last Will and Testament, written on twenty-three (23) sheets of paper, dated this ,~~ day of /r' , 2006. ~'^'- ~ (SEAL) GE T den HAR.TO The preceding instrument, consisting of this and twenty-two (22) other typewritten pages, each identified by the signature or initials of the Testator, was on the day and date thereof signed, published and declared by the Testator therein named, as and for his Last Will, in the presence of us, who, at his request, in his presence, and in the pre;sence of each other have subscribed our names as witnesses hereto. • residing at ~ ~~ ,~~ ~ ~ residing at / C_.Lc~Jd u~ ~ 1 C~ 24 COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND ss. I, GEURT den HARTOG, the Testator whose name is signed to the attached or foregoing instrument, having been duly qualified according to law, do hereby acknowledge that I signed and executed the instrument as my Last Will; and that I signed it willingly and as my free and voluntary act for the purposes therein expressed. Sworn to or affirmed and acknowledged before me by GEURT den HARTOG, the Testator, this S "` day of ~a-y , 2006. Notary Public +.-~ (SEAL) GEU den HARTOG, I C~T:Ji.,'SFE:.j ~".'2c~ I. Trivia L. ~aiiey, hlot_ry Public I South A~fiddletor~ ",~v~p., Ce+nL•erland i~ourry I IV1y COIILil155iGG ~;rdrs Sept. 24, 2~0( t COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND ss. We, t~iTl- ~_ ~t,.5 an `'z.~2£ ~J . ~U~2K-N~oC.~E2 , the witnesses whose names are signed to the attached or foregoing instrument, being duly qualified according to law, do depose and say that we were present ,end saw the Testator sign and execute the instrument as his Last Will; that the Testator signed willingly and executed it as his free and voluntary act for the purposes therein expressed; that each subscribing witness in the hearing and sight of the Testator signed the Will as a witness; an~3 that to the best of our knowledge the Testator was at the time eighteen (18) or more years of age and of sound mind and under no constraint or undue influence. Sworn to or affirmed and subscribed to before me by ,~n+~Trnl C- ~,s and ~1_~.ss ~ ~bue~cNoc~EQ ,witnesses, this ~~ day of ~~,, , 2006. o~ ~ ~-~~. ~ Notary P lic ,. ~:~i fem. 3 mod,. :.j, 11J[~5~~ h 11~?11C ~_.. i f~9:d~i;e. ;n' _ . i.'a~ineriand C:o~k~te 25 FIRST CODICIL TO LAST WILL AND TESTAMENT I, GEURT den HARTOG, of North Newton Township, Cumberland County, Pennsylvania, declare this to be the First Codicil to my last Will dated May 5, 2006. ITEM I: I do hereby amend my Last Will and Testament dated May 5, 2006, by adding thereto the following specific bequests: "ITEM II": I bequeath those articles of m:,~ household funuture and ,Afi~i'~n. ,,>r. y*-5q. :: "~.; ,.,>~ ... ;, ... ,~,. _ :... ._., ~ s:J3~'" ~7e".~'y~,:Tr.+ C'ti4K" t'N ,'~~~A ~i;d+; ~~ Z 'r...ir"~1y _ ,~. ~7I1115~2in~SN ~It~ thOSe arti~l~as o#~"-t``.} Jv'' j*~'*~'.'~'(*~~~~eCi~i ~211~ ~ ~~~~~~3'' a-~r ,. _ .. _... ~ ,;_ _ ~~-- or may set forth in a separate memorandum (which is or will be signed by me, dated and make specific reference to this Will and memorand~un, which I shall place with my Will or deposit with my attorney), to the persons therein designated. In addition, I bequeath the full sum of $5,000.00 to the First Unil:ed Presbyterian Church of West Big Spring Avenue, Newville, Pennsylvania. And, I bequeath the full sum of $1,000.00 to the Newville Food Bank. ITEM II: In all other respects, I hereby ratify, confirm and republish my last Will dated May 5, 2006, together with this First Codicil, as and for my last Will. IN WITNESS WHEREOF, I have hereunto set my hand and seal. this ~' day of ~p r2; I , Zoos. `"~°~ ~ ~ (SEAL) GE T den HAR'TOG Signed, published, and declared on the date above specified by the above named as and for the First Codicil to his last Will dated, in the presence of us, who at his request, in his presence, and in the presence of each other, have subscribed our names as witnesses hereto. ~% ~°-'l 1 ~ /1/ residing at . S~ i , I ` ~'~-~-c.~~ ~CL~ `(.¢ yi residing at U` ~'d'~ ~ti'iL r ,~~" ~~ . " -0 ~ ~ .. 2 COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ss. I, GEURT den HARTOG, the Testator whose name is signed to the attached or foregoing instrument, having been duly qualified according to law, do hereby acknowledge that I signed and executed the instrument as my First Codicil to my last Will dated May 5, 2006; and that I signed it willingly and as my free and voluntary act for the purposes therein expressed. c~•-1( (SEAL) GE T den HA OG Sworn to or affirmed and acknowledged before me by GEURT den HARTOG, the Te ator, this ~ ~ day of 2007. , r rn ., Not Ptkblic - COMMONWEALTH OF PENNSYLVANIA: . ss. COUNTY OF CUMBERLAND +;oiVitUloN~P~~~'.~-'~~ `'.~" ~'~~9NSYLVRNIA ~.daiarial Seal Nichcle J. @Cel4ert, lr?o4ary Public Shippensburg 13om, C:~~~~ber9and County t 32007 t~AerRbec. Psnr~~~ ',~$odietio~? We, )~t+i~7~~~ Yy~iS and ~I'~ ~~~-l°°~~~"`'~~ ,the witnesses whose names are signed to the attached instrument, being duly qualified according to law, do depose and say that we were present and saw the Testator sign and execute the instrument as his Codicil; that the Testator signed willingly and executed it as his free and voluntary act for the purposes therein expressed; that each subscribing witness in the hearing and sight of the Testator signed the Codicil as a witness; and that to the best of our knowledge the Testator was at the time eighteen (18) or more years of age and of sound mind and under no constraint or due i~lfluence. 1 ~~,~c~ c~7~<~~ J Sworn to or aff ed anLLd~~subscribed to b ore me by `~~'1 r ~~l C • vis and ~{~] L~ ,~ ,witnesses, this `NSYLVaNI~ day of ~ ~ ~ , 2007. Coa~ifvloP•d'~~f~P.l: € ~ c. s- ~~~ rJ~,4ati2~l Seal /} /„ ~~Lx-r/ ~- Nicho9e J: ltellc-st, Noiary Public (J ~ Shippensburg l?orca, Cus~be~and Canty Notary F~ublic My Commissi~'a ins ~°pt 3, 2007 Member, Pennsyl~~ac~~ l~s~ociation Of Notaries 3 :a :.~ '~ :;; ` Page B2 - The Sentinel Geurt den Hartog .~ Geurt den Hartog, 80, of " and GE:rard den Hartog (and Newville, passed away peaceful- his wife, Deidre) of Chambers- ly on Saturday, Jan. 12, 2008, in " burg; a grandson, John den Har- Harrisburg Hospital. ~ tog; a brother, Kees den Hartog Born Oct. 15, 1927, in the of Spain; and his "war" brother, Netherlands to the late Dirk den Max Na.thans of Israel. Hartog and Magritha F.J. Goede- He is preceded in death by his gebuure, he is survived by his oldest l;~rother, John den Hartog, wife, Grada "Ada" Hofman den and his :sister, Aagje van der Meer. Hartog, to whom he was married A memorial service will be at to for 56 years. noon Saturday in First United The den Hartogs emigrated to Presbyterian Church, 111 Big the U.S.in 1977. Spring ,we., Newville, with the He was a humble, brave, hard Rev. Vewon Gauthier officiating. workin g man , a nd a lo v in g h u s - Visitatio r i will be f ro m 11 a m . , ~ ,.~ ~j ] ~ j ~ ~ ~ y , ~~ ~] '."~".•'~..!PV~L.41sI1RG(+ 112 ~ F ~ ~ j ~ ~ ~e '.~~. e7~~.~.3L1 Ltd' ri~l~Ti i`~r .-~¢s 'hf '.af . WW1-' the Nedierlauds lze was a fAIIl7ei' Banal ~arilt lie held af: the convex and iiuit grower, and received his ~ nience of the family. education there in agriculture. He Memorial contributions can be also farmed in Newville. made to the American Parkinson He belonged to First United Disease .Association Inc.,135 Par- Presbyterian Church, Newville. kinson Ave., Staten Island, NY In addition to his wife, he is 10305 or to his church. survived by two sons, Dick den Arrangements are under the di- Hartog (and his companion, Bert section of Egger Funeral Home, Kwerreveld) of the Netherlands Newville;. LAW OFFICES OF ZULLINGER - DAVI-~ PROFESSIONAL CORPORATION JOEL R ZULLINGER 14 North Main Street Dale F. Shughart, Jr. Suite 200 of counsel Chambersburg, PA 17201 717-264-6029 Fax:717-264-1884 zuln~rlaw(cr~earthlink.net October 10, 2008 Register of Wills Cumberland Courthouse One Courthouse Square Carlisle, PA 17013 RE: Estate of Geurt den Harto~ Est. No. 21-08-0097 Dear Sir or Madam: IIAIVIILTON C. DAMS 20 East Burd Street, Suite 6 P.O. Box 40 Shippensburg, PA 17257 717-532-5713 Fax: 717-530-5222 hamiltondavislawna comcast.net Enclosed herewith please fmd an inheritance tax return, filed in duplicate. As you can see from the return, there is no tax liability due. A check for filing fee in the amount of $15.00 is also enclosed If there are any questions or concerns, please contact me at the SYuppensburg office. Thank you. Sincerely yours, C Hamilton C. Davis for Zullinger -Davis Professional Corporation HCD/ams Enclosures Reply to: Hamilton C. Davis P.O. Box 40 Shippensburg, PA 17257