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1505607120 ~ ~~ 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 60X.280601 21 0 8 0 0 3 41 Harrisburg, PA 17128-0601 ~ RESIDENT DECEDENT ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death Date of Birth 166 O1 3739 03 04 2008 10 30 1917 Decedent's Last Name Suffix Decedent's First Name MI STAMY MARY F (If Applicable) Enter Surviving Spouse's Information Below Spouse's Last Name Suffix Spouse's First Name MI Spouse's Social Security Number FILL IN APPROPRIATE OVALS BELOW 1. Original Return ~~, 4. Limited Estate I y g Decedent Died Testate ~,• (Attach Copy of Will) 9. Litigation Proceeds Received THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS 2. Supplemental Return 4a. Future Interest Compromise (date of death after 12-12-82) ~ Decedent Maintained a Living Trust Q (Attach Copy of Trust) 1 p Spousal Poverty Credit (date of death between 12-31-91 and 1-1-95) CORRESPONDENT -THIS SECTION MUST BE COI Name HAMILTON C. DAVIS Firm Name (If Applicable) ZULLINGER-DAVIS, PC First line of address P.O. BOX 40 Second line of address City or Post Office SHIPPENSBURG AND 3. Remainder Return (date of death prior to 12-13-82) 5. Federal Estate Tax Return Required 8. Total Number of Safe Deposit Boxes 11. Election to tax under Sec. 9113(A) (Attach Sch. O) .L TAX INFORMATION SHOULp.6E DIRECTED_TO: Daytime Tele~ione Numb; _ -~' I, d- i 717 5 X05 7134 ~` ~ ~a t~ v c'n ~ ~ :~- ' `- :: -- ,. t REGISTER ~ 1t~ USF.~ILY - =ri ;"::3 ` ~O -v -~- ~0-n ~ y C'j ©~ ~ - 1 ' ~ N State ZIP Code PA 17257-0040 Correspondent'se-mail address: hamiltondavislaw@comcast.net DATE FILED der 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 s true, correct an complete. Declaration of preparer other than the personal representative Is based on all information of which preparer has any knowledge. IGNATURE 0 P N RESPONS LE FOR F IN RETURN DATE _....._ ~. ~.. _ ~LrVi~,.~ir~ SPENCER A. STAMY 1 7 1 .Z / F) ~(! ADDRESS 525 GREENSPRING ROAD, Newville, PA 17241 SIGNATUR OF PREPAR OTHER THAN REPRESENTATIVE DATE ~~ Hamilton C. Davis lZj~~ ADDR~SS / - P.O. BOX 40, Shippensburg, PA 17257-0040 Side 1 L 1505607120 1505607120 J ,-` J REV-1500 EX ~aceeenc~s Name: MARY F. S T A M Y Decedent's Social Security Number 166 O1 3739 RECAPITULATION 1. Real Estate (Schedule A) ......................................................................................... . 1. 1,008,544.00 2. Stocks and Bonds (Schedule B) .............................................................................. . 2. 3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C)......... . 3. 4. Mortgages i;< Notes Receivable (Schedule D) ......................................................... . 4. 5• Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) ............... . 5. 2 5 , 3 3 0 . 3 4 6. Jointly Owned Property (Schedule F) ~ Separate Billing Requested ............ . 6. 4 1 , 0 8 8 . 8 0 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G) ~ Separate Billing Requested ............ . 7. 8. Total Gross Assets (total Lines 1-7) ...................................................................... . 8. 1 , 0 7 4 , 9 6 3.14 9. Funeral Expenses & Administrative Costs (Schedule H) ................................. ........ 9. 3 8 , 3 2 3 . 5 0 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule 1) ....................... ......... 10. 2 , 7 0 3 . 5 9 11. Total Deductions (total Lines 9 & 10) ............................................................. ......... 11. 4 1 , 0 2 7 . 0 9 12• Net Value of Estate (Line 8 minus Line 11) .................................................... ......... 12. 1 , 0 3 3 , 9 3 6 . 0 5 13. Charitable and Governmental Bequests/Sec 9113 Trusts for which an election to tax has not been made (Schedule J) ......................................... ........ 13. 14. Net Value Subject to Tax (Line 12 minus Line 13) ......................................... ........ 14. 1 , 0 3 3 , 9 3 6 . 0 5 TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 (a)(1.2) X .00 0 . 0 0 15. 16. Amount of Line 14 taxable at lineal rate x .045 1, 0 3 3, 9 3 6. 0 5 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. 1505607220 0.00 46,527.12 0.00 0.00 46,527.12 Side 2 1505607220 1505607220 . REV-1500 EX Page 3 Decedent's Complete Address: File Number 21-08-00341 DECEDENT'S NAME MARY F. STAMY STREET ADDRESS GREEN RIDGE VILLAGE 210 BIG SPRING ROAD CITY STATE ZIP Newville PA 17241 Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount 3. Interest/Penalty if applicable p, Interest E. Penalty 0.00 Total Credits (A + B + C) (1) 46,527.12 Total InterestlPenalty (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. g, Enter the total of Line 5 + 5A. This is the BALANCE DUE. Make Check Payable to: REGISTER OF WILLS, AGENT (2) 0.00 (3) (4) (5) 46,527.12 (5A) (5B) 46,527.12 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 :.................................................................................. ^ x^ b. retain the right to designate who shall use the property transferred or its income :.................................... ^ x^ c. retain a reversionary interest; or .................................................................................................................. ^ x^ 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? ....................................................................................................................... ^ 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)]. 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)]. 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-1602 EX+ (6.98) SCHEDULE A REAL ESTATE COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER STAMY, MARY F. 21-08-00341 All real property owned solely or as a tenant In common must be reported at talr 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 Jointly-owned with right oT survivorship must be disclosed on schedule F. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 A 95% TENANT IN COMMON INTEREST IN REAL ESTATE SITUATED IN NORTH 1,008,544.00 NEWTON TOWNSHIP, CUMBERLAND COUNTY, PENNSYLVANIA, WITH A PROPERTY ADDRESS OF 525 GREENSPRING ROAD, NEWVILLE, PA 17241 -SEE ATTACHED APPRAISAL TOTAL (Also enter on Line 1, Recapitulation) I 1,008,544.00 (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-1508 EX+ (6-98) SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF (FILE NUMBER STAMY, MARY F. 21-08-00341 Include the proceeds of litigation and the data the proceeds were received by the estate. All property Jointly-owned with the right of survivorship must be disclosed on schedule F. ITEM NUMBER DESCRIPTION VALUE AT DATE OF DEATH 1 ADAMS COUNTY NATIONAL BANK -DIVIDEND 52.25 2 FARMERS NATIONAL BANK CHECKING ACCOUNT NO. 131164 3,545.82 3 INTEREST IN GROWING PREMERCHANTABLE TREES - (SEE ATTACHED 18,761.27 VALUATION). DECEDENT AND HER SON AS CO-OWNERS OF TENANT IN COMMON INTERESTS IN REAL ESTATE COOPERATED IN PLANTING AND GROWING TREES ON THE PROPERTY. THEIR INFORMAL UNDERSTANDING WAS THAT THE DECEDENT'S INTEREST EQUALED 30%. 4 M&T BANK -DIVIDEND 287.00 5 M8~T BANK -DIVIDEND 287.00 6 M8r,T BANK -DIVIDEND 287.00 7 USDA - CREP PROGRAM RECEIVABLE 1.110.00 8 MISCELLANEOUS PERSONAL PROPERTY AND PERSONAL EFFECTS 1.000.00 - TOTAL (Also enter on Line 5, Recapitulation) I 25,330.34 (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+ (6-98) COMMONWEALTH OF PENNSYLVANIA INHERRANCE TAX RETURN RESIDENT DECEDENT SCHEDULE F JOINTLY-OWNED PROPERTY ESTATE OF (FILE NUMBER STAMY, MARY F. 21-08-00341 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. SPENCER A. STAMY 525 GREENSPRING ROAD Son Newville, PA 17241 r? 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 ADAMS COUNTY NATIONAL BANK 3,932.50 50.000% 1,966.25 STOCK - 275 SHARES AT $14.30 A SHARE (SEE ATTACHED VALUATION) 2 FARMERS NATIONAL BANK 10.632.08 50.000% 5,316.04 CERTIFICATE OF DEPOSIT -ACCOUNT NO. 176538 ~~~J~v~ p~~r2;o>t5v~^~ 3 FARMERS NATIONAL BANK 10,759.38 50.000% 5,379.69 CERTIFICATE OF DEPOSIT -ACCOUNT NO. 172507 ~ ((~,,.t~ v3' ~~~~ 4 FARMERS NATIONAL BANK 7,183.37 50.000% 3,591.69 CERTIFICATE OF DEPOSIT -ACCOUNT NO. 176538 (zollav~• ~'~~,'~~ )v;~--~~ 5 FARMERS NATIONAL BANK 17.280.26 50.000% 8,640.13 CERTIFICATE OF DEPOSIT -ACCOUNT NO. 17655 ~wr+d s m ~ ~Jpn~.c-(~ ~S-.S 6 M8tT BANK STOCK - 410 SHARES AT 32,390.00 50.000% 16.195.00 $79.00 A SHARE (SEE ATTACHED VALUATION) TOTAL (Also enter on Line 6, Recapitulation) I 41,088.80 (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-1151 EX+ (12.99) ' COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS ESTATE OF FILE NUMBER STAMY, MARY F. 21-08-00341 Debts of decedent must be reported on Schedule I. ITEM DESCRIPTION AMOUNT NUMBER A, FUNERAL EXPENSES: See continuation schedule(s) attached B. 1 ADMINISTRATIVE COSTS: Personal Representative's Commissions SPENCER A. STAMY Social Security Number(s) / EIN Number of Personal Representative(s): Street Address 525 GREENSPRING ROAD City Newville State PA Zip 17241 Year(s) Commission paid 5,777.00 2. Attorney's Fees 30,400.00 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 450.00 See continuation schedule(s) attached 5. Accountant's Fees 6. Tax Return Preparer's Fees 7. Other Adm inistrative Costs 1,696.50 See continuation schedule(s) attached TOTAL (Also enter on line 9, Recapitulation) 38,323.50 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H (Rev. 6-98) SCHEDULE H FUNERAL EXPENSES AND ADMINISTRATIVE COSTS continued ESTATE OF FILE NUMBER STAMY, MARY F. 21-08-00341 ITEM NUMBER DESCRIPTION AMOUNT Funeral Expenses 1 EGGER FUNERAL HOME 5,777.00 H-A subtotal 5,777.00 Attorney Fees 2 DALE F. SHUGHART, ESQUIRE 400.00 3 HAMILTON C. DAVIS, ESQUIRE 30,000.00 H-B2 subtotal 30,400.00 Probate Fees 4 CUMBERLAND COUNTY REGISTER OF WILLS -PROBATE FEE 450.00 H-Ba Subtotal 450.00 Other Administrative Costs 5 FORESTRY SERVICES -VALUATION OF TREES 200.00 6 LEGAL ADVERTISING -CUMBERLAND COUNTY LEGAL JOURNAL 75.00 7 LEGAL ADVERTISING -THE NEWS CHRONICLE 96.50 8 S.W. BARRETT REAL ESTATE 8~ APPRAISAL SERVICES 1,325.00 H-B7 subtotal 1,696.50 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H (Rev. 6-98) Rev1612 EX+ (6.98) SCHEDULE I DEBTS OF DECEDENT, MORTGAGE LIABILITIES, & LIENS COMMONWEALTH OF PENNSYLVANIA INHERRANCE TAX RETURN RESIDENT DECEDENT ESTATE OF (FILE NUMBER STAMY, MARY F. 21-08-00341 Include unrelmburaed medicalexpenaea. (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule I (Rev. 6-98) REV-1613 EX+ (9-00) SCHEDULE J COMMONWEALTH OF PENNSYLVANIA BENEFICIARIES INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER STAMY, MARY F. 21-08-00 341 NAME AND ADDRESS OF RELATIONSHIP TO SHARE OF ESTATE AMOUNT OF ESTATE NUMBER PERSON(S) RECEIVING PROPERTY DECEDENT (Words) ($$$) Do Not List Trustee s I. TAXABLE DISTRIBUTIONS [include outright spousal di ib i d f str ut ons an trans ers under Sec. ~116(a)(1.2)) 1 KRISTEN STAMY DETWEILER Granddaughter SPECIFIC 2,000.00 141 DOUBLING GAP ROAD BEQUEST Newville, PA 17241 2 SPENCER A. STAMY Son RESIDUE 1,031,936.05 525 GREENSPRING ROAD Newville, PA 17241 Total 1,033,936.05 Enter dollar amounts for distributions shown above on lines 1 5 through 18, as appropr iate, 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 TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET 0.00 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule J (Rev. 6-98) LAST WILL AND TESTAMENT O F ~ _ _~ MARY F. STAMY I, Mary F. Stamy, of Cumberland County, Pennsylvania, being. of sound mind, memory and understanding, do hereby make, publish and declare this as and for my Last Will and Testament, hereby revoking all other wills and codicils heretofore made by me. FIRST I direct the payment of my debts and the expenses of my last illness and funeral from my estate as soon after my death as conveniently may be done. If there be no cemetery lot available for my interment, owned by me at the time of my death, I authorize my personal representative to purchase such cemetery lot with a contract for perpetual care; using therefore funds from my estate, and I authorize my personal representative to cause title to or ownership of such lot so purchased to be vested in such person as my personal representative shall designate. Further, in this connection, I authorize my personal representative to expend funds from my estate, in such amount as my personal representative shall consider necessary and desirable, for the purchase, erection and inscription of a suitable marker for my grave. It is my desire that the expenses associated with my funeral be extremely modest with a very simple casket. 1 I SECGND li give the sum of $2,000.00 to my grand-daughter Kristen E. Stamy. I give, devise and bequeath the remainder of my entire estate of whatever nature and wherever situate to my son Spencer A. Stamy. I purposefully leave no portion of my estate to any of my other children. Should my son Spencer fail to survive me and I am unable to execute a subsequent testamentary disposition, by reason of illness, incapacity or otherwise, then I direct that the remainder of my estate be distributed as follows: A. The sum of $100,000 to the Gilford Brethren in Christ Church, Gilford Township, Franklin County, as an endowment named The John F. Stamy Endowment, with the further restriction that the income only be distributed for the maintenance of the cemetery, with any excess income after maintenance used for general church needs and not for any manse expenses. B. The sum of $100,000 to the Big Spring Presbyterian Church, Newville, Cumberland County, as an endowment named The Mary F. Stamy Endowment, with the further restriction that the income only be distributed for the maintenance of the church cemetery, with any excess income after maintenance used for general church needs and not for any manse expenses. C. The sum of $20,000 to Victor Herman Negley, should he survive me. D. The remaining balance of my estate shall be equally divided among the following: Bethesda Mission, Salvation Army, Humane Society of Pennsylvania, Newville Friendship Fire and Ambulance Company, Newville Area Community Chest, Pennsylvania Forestry Association, the Pennsylvania chapter of The American Tree Farm System and Nealy Land Farms, Inc. THIRD direct that no trustee, executor, guardian or other fiduciary named, nominated, or appointed by this my Last Will and Testament shall be required to post any bond or give any security of any type for any purpose whatsoever, any law or rule of the court of the Commonwealth of Pennsylvania or any other jurisdiction to the contrary notwithstanding. I direct that the law of the Commonwealth of Pennsylvania shall apply to any interpretation or application of the validity of this instrument. FOURTH My executor and/or trustee shall have the following powers in addition to those vested in them by law and by other provisions of this Will, applicable to all property, real, personal or mixed and wheresoever situate, including property held for minors, whether principal or income, exercisable without court approval, and effective, with respect to each item of said property until actual distribution thereof. A) To retain, as investments of my estate or trust, any or all assets of my estate, real, personal, or mixed, without regard to any principal of diversification, and to purchase and acquire real or personal property and to hold any or all of such real and personal property retained or acquired without making the same productive of income. 13) To permit the children, or any of them, to occupy any real estate retained or acquired upon such terms and conditions as my executor or trustee shall deem proper. C) To pay all taxes, charges and expenses of maintenance, upkeep, improvements, development, protection, preservation and investment of any retained or acquired real or personal property, such payments to be made from either principal or income as my executor or trustee shall determine. D) To retain or invest any and all funds, whether principal or income, in any real or personal property without restriction to legal investments; to purchase investments at premiums; to exercise all rights of a security holder or share holder in any corporation; and to lease, mortgage, pledge, give options upon or sell at public or private sale and without approval of any court, any real or personal property, or portion or portions thereof, irrespective of the manner or the means by which the same was acquired by my said executor or trustee. E) To make payment or distribution herein provided for in cash, kind or partly in cash and partly in kind, at valuations fixed by my executor or trustee at the time of distribution. FIFTH Any and all payment or payments of any sum or sums, whether in cash or in kind and whether for principal or income, payable to an heir, or any of them, shall be made upon the sole receipt of the respective individual to whom the payment is made, and free from anticipation, alienation, assignment, attachment, and pledge, and free from control by the creditors of any such beneficiary. SIXTH I appoint Spencer A. Stamy, Executor of this my Last Will and Testament. IN WITNESS WHEREOF, I have hereunto set my hand and seal to this, my Last Will and Testament, consisting of six (6) typewritten pages, the first four (4) of which bear my signature in the margin for the purpose of identification, this ~°~"~ day of ~~tr?~.~t.r~ , 2003. ~~~ ~ (SEAL) MARY F. STAMY~ Signed, sealed, published and declared by the above named testatrix, Mary F. Stamy, as and for her Last Will and Testament, in the presence of us, who, at her request, in her sight and presence, and in the sight and presence of each other, have hereunto subscribed our names as witnesses. .. ~ ~ ~) ~ ADDRESS~J~I L~~~ ',~.~ . , ~u'G~ ~~ l7(1v~~ ~,l/ti`a ~~ L~~.~~tc ADDRESS 93~ ,L~c~~.a~' c~~ o`~~S,rt.~ ~Qh.~.e,~~ ~,~ i`~C>/,-~ ~~ i.. COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND SS. We, Mary F. Stamy, ._ J C ~t'1 i ~r,, ~ ~ . L; i'~C~~a~nd ~ it?u r~~! . ~`~.:.~ C:~r ;~ the testatrix and the witnesses, respectively, whose names are signed to the attached or foregoing instrument, being first duly sworn, do hereby declare to the undersigned authority that the testatrix signed and executed the instrument of her Last Will and Testament, and that she signed willingly and that she executed as her free and voluntary act for the purposes therein expressed, and that each of the witnesses, in the presence and hearing of the testatrix, signed the Will as witnesses, and that to the best of their knowledge, the testatrix was at the time eighteen (18) years of age or older, of sound mind and under no constraint or undue influence. Sworn to and subscribed before me this ~-~'~a day of ..~'~~ r`~~.!_rtr~~ 2003. ~l~ rrJ '` Notarial Seal Amanda L. Fisher, Notary Public Cadisfe Boro, Cumberland County My Commission Expires Apr. 17, 2006 Member. Permsyh~aoia Association Of Notaries JUL 1 '7 2008 S. W. SARRETT REAL ESTATE & APPRAISAL SERVICES Appraisals • Brokerage • Counseling 505 S. Hanover Street Carlisle, PA 17013-3919 Phone (717) 243-6646 or (717) 243-1800 FAX (7"l7) 243-8627 appraisals@swbarrett. com Steven W. Barrett, SRPA, SRA, ASA State Certified General Appraiser Real Estate Broker .d~~l~~lli~. Appraisal - Instllule SRPA SRA ,M Q ~ Q p REALTOR July 11, 2008 Hamilton C. Davis, Esquire 20 East Burd Street, Ste. 6 Shippensburg, PA 17257 Re: Mary Stamy Estate Greenspring Road Newville, Cumberland County Dear Attorney Davis; The above referenced property has been appraised for the purpose of estimating the "Market Value" of the Fee Simple Estate in accordance with current Uniform Standards of Professional Appraisal Practice (USPAP) guidelines in Summary Format. The appraiser also has been requested to arrive at an estimate of value for the "partial interest", divided or undivided rights, in real estate that represent less than the whole. The "As Of 'date for this analysis is March 4, 2008. Partial interest or undivided partial interest in a specific property that is shared by the co- owners limits the ability to transfer title or encumber any specific part of the whole. Normally, minority interest has limited appeal due to the owners'/partners' lack of control of the entirety. Therefore, it is necessary to discount the fractional interest to reflect the diminished marketability of the partial interest. Discount rates within the central Pennsylvania market place, from the appraiser's experience, range from 5% to 40% for the portion that is attempting to be transferred. This is also supported by articles published about appropriate discount rates associated with conveyance of partial interest, and Appraisal Institute seminars that this appraiser has attended. For example, typically there is an inverse relationship between the size of the partial interest and required discount rate, for example, the larger the partial interest, the smaller the discount rate. Conversely, the smaller the partial interest, and /or the more parties involved, the higher the required discounted rate. Page Two Mary Stamy Estate Greenspring Road A discount rate of 5% has been selected for the subject. This rate is considered appropriate, based on present day market conditions. The following analysis reflects the mathematical calculation required to arrive at the "partial interest" value for this analysis. Fee Simple Value of Entire Property $1,117,500 Partners Fractional Interest Ownership Percentage: 95% Non-Discounted, Fractional Interest Value: $1,061,625 Chosen Partial Interest Discount Rate: 5% Discount For Partial Interest $53,081 Partial Interest Value $1,008,544 Based on the mathematical analysis performed, regarding the subject property, the partial interest analyzed, and the present day market conditions, the "Partial Interest" value is $1,008,544. The appraiser also certifies that there is no financial interest, present or contemplated, in this property, and that neither the employment to make the appraisal nor the compensation there from is contingent upon the value reported. Sincerely, ~. ~~~ Steven W. Barrett, SRA, SRPA, ASA PA Certified General Appraiser GA000298L S. W. Barrett Real Estate & Appraisal Services File No. 08-0129 APPRAISAL OF I ~. `s! ~:?s .. , t _ .: , _ f~~ i _ ~, -. ... _ ~ ..: .~.~. LOCATED AT: Greenspring Road Newville, PA 17241-9624 FOR: Hamilton C. Davis, Esquire 20 East Burd St, Ste. 6 i Shippensburg, PA 17257 BORROWER: Mary STAMY (Estate) AS OF: March 4, 2008 BY: Stan A. Skowronek Certified General Appraiser S. W. Barrett Real Estate & Appraisal Services nie rvo. va-U7Ly 05/13!2008 Hamilton C. Davis, Esquire 20 East Burd St, Ste. 6 Shippensburg, PA 17257 File Number: 08-0129 In accordance with your request, I have appraised the real property at: Greenspring Road Newville, PA 17241-9624 The purpose of this appraisal is to develop an opinion of the market value of the subject property, as vacant. The property rights appraised are the fee simple interest in the site. In my opinion, the market value of the property as of March 4, 2008 is: $1,117,500 One Million One Hundred Seventeen Thousand Five Hundred Dollars The attached report contains the description, analysis and supportive data for the conclusions, final opinion of value, descriptive photographs, limiting conditions and appropriate certifications. Respectfully submitted, _. ~- , -'a _L Stan A. Skowronek Certified General Appraiser S. W. Barrett Real Estate & Appraisal Services LAND APPRAISAL REPORT F;IPnIr, n>s_n~~o Pro Address Greens rin Road Census Tract 0128.00 LENDER DISCRETIONARY USE Ci Newville' Count Cumberland State PA Zi Code 17241-9624 Sale Price $ Le al Desai lion Deed Book X-32, a e 503 Tax ID # 30-08-0593-037 _ Date OwnerlOccu ant Starr , Ma F. & S encer A. Ma Reference 08-0583 _ Mortgage Amount $ „ Sale Price $ N/A Date of Sale NIA Property Rights Appraised Mortgage Type Loan char es/concessions to be aid b seller $ NIA X^ Fee Simple Discount Points and Other Concessions R.E. Taxes $ 2 203.00 Tax Year 07/08 HOA $IMo. N/A ^ Leashold Paid by Seller $ Lender/CIieN Hamilton C. Davis Es wire ^ Condominium(HUDNA) 20 East Burd St Ste. 6 Shi ensbur PA 17257 PUD source LOCATION Urban Suburban X Rural NEIGHBORHOOD ANALYSIS cove n.y. rak Per BUILT UP ^ Over 75% X^ 25-75°k ^ Under 25% Employment Stability ^ ^X ^ ^ GROWTH RATE ^ Rapid X^ Stable ^ Slow Convenience to Employment ^ ^X ^ ^ PROPERTY VALUES X^ Inaeasing ^ Stable ^ Declining Convenience to Shopping ^ X^ ^ ^ DEMAND/SUPPLY ^ Shortage ^X In Balance ^ Over Supply Convenience to Schools a ®^ o MARKETING TIME Under 3 Mos. X 3-6 Mos. Over 6 Mos. Adequacy of Public Transportation ^ ^ ^ PRESENT LAND USE % LAND USE CHANGE PREDOMINANT SNGLEFAMILYHOl1SING Recreation Facilities ^ 0 ^ ^ ' Single Family 65% Not Likely ^ OCCUPANCY PRICE AGE Adequacy of Facilities ^ ^X ^ ^ 2d Family 0% Likely ^ Owner ^X $(000) (yrs) Property Compatibility ^ ~ ^ ^ "Multi-Family 0% In process ^X Tenant ^ 120 Low New Protection from Detrimental Cond. ^ X^ ^ ^ Commercial 0% To: Residential Vacant (0-5%) ^X 300 High 100 Police & Fire Protection ^ Industrial 0% Vacant (over 5%) ^ Predominant General Appearance of Pro erties ^ X ~ O D Vacant 35% 150 - 30 p A eel to Market X Note: Race or the racial composition of the neighborhood are not considered reliable appraisal factors. COMMENTS~The subject is located In an area of mixed residential and a ricultural uses which are common to Western Cumberland Coun It is within reasonable drivin distance to ammenities such as schools, sho in and em to ment. Dimensions See le al descri lion Topography Rolling Site Area 159.64 Acres m/l Corner Lot No Size Larger than normal Zoning Classification None known Zoning Compliance N/A Shape Irregular HIGHEST & BEST USE: Present Use Present Other Use N/A Drainage Appears Adequate UTILITIES Public Other SITE IMPROVEMENTS Type Public Private View O en Country Electricit X^ 200 A y mp Street Macadam X^ ^ Landscaping N!A Gas ^ CurblGutter None ^ ^ Driveway Gravel Water X^ W ll e Sidewalk None ^ ^ Apparent Easements None Apparent Sanitary Sewer ^ To be septic Street Li hts None ^ ^ g FEMA Flood Hazard Yes` No X _ Storm Sewer Alle None FEMA` Ma JZone 421593 0002/Zone C Comments (Apparent adverse easements, encroachments, special assessments, slide areas, etc.): Private water and sanitary systems are common t0 the area and have no adverse affect upon marketability. There are no apparent adverse easements encroachments or other adverse conditions. Pro a current) taxed under the Clean & Green ro ram. The undersigned has recited three recent sales of properties most si miliar and proximate to subject and has considered these in the market analysis. The descri plion includes a dollar adjustment, reflecting market reaction to those items of significant variation between Iha subject and comparable properties. If a significant item in the comparable property is su erior t f p o, or more avorable than, the subject property, a mi s (-) adjustment is made, thus reducing the indicated value of subject; if a signiflca nt item in the comparable is inferior lo l ! n , or ess evocable than, the subject properly, a plus (+) a djustment is made, thus increasing the intli ca tad value of the sublet/. ITEM SUBJECT COMPARABLE N0. 1 COMPARABLE N0. 2 COMPARABLE N0. 3 Greenspring Rd 190 Mudlevel Road 88 Finkenbinder Road 200 Ott Road Address ' Newville Newville Newville Shi ensburg Proximi to Sub ect 1.9 MIS 3.2 MI ENE 2.4 MI SSW Sales Price $ N/A $ 1 200 000 $ 1 450 000 $ 1 099 000 Price/Acre - $ m $ 11,122m $ 11,559m , $ 7033 Data Source - Ins action Courthouse Courthouse VALUE ADJUSTMENTS • DESCRIPTION DESCRIPTION «(-}SAdjuslmenl DESCRIPTION +(->andjaalmenl DESCRIPTION .(-)sndjoalmanl Sales or Financing Unknown Unknown Unknown Concessions Date of Sale/Time NIA 12/03/2007 04/18!2007 11/21!2007 . Location Rural Rural Rural Rural -~- SiteNiew 159.64 Ac/Av 107.89 AclAv 125.44 Ac/Av 156.27 AclAvg ' Road Access Avera a Avera a Avera a vera e Outbuildin s Yes Yes Yes Yes T House None 1560 S Ft -25°/ -2 780 2228 S Ft -25% -2 980 2880 S Ft -25% -1 758 Net Ad . total + X - ~ $ 2 780 + X - ; $ 2,980 + X - ' $ 1 758 , Indicated Value Gross: 25.0 Gross: 25.8 Gross: 25.0 of Sub act Net: -25.0 $ 8 342 Net: -25.8 $ 8 579 Net: -25.0 $ 5 275 Comments of Sales Comparison: See Attached Addendum. Comments and Conditions of Appraisal: The property has been appraised in current condition This is for the clients use only. Final Reconciliation: The adjusted price per acre range is $5 275 to $8 579 -SAY - $$7 000 per acre $7 OOO/acre (a) 159 64 acres = ' . $1,117,480 -SAY - $1,117 500. I (WE) ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE SUBJECT PROPERTY AS OF March 4 2008 , to be $ 1,117,500 . I (We) certify: that to the best of my (our) knowledge and belief, the facts and data used herein are true and correct; that I (we) personall ins ect d th b y p e e su ject property and inspected all comparable sales cited in this report; and that I (we) have no undisclosed interest, present or prospec(ivet~erein. , ~ ~ - -_ ~ r . Appraiser(s) ~:~. ~, -.._ t~, ~ ~ G~-. Review Appraiser ' - -~ i_" ' --- ~~ Did ^ Did Not Stan A Skowronek (ifapplicahle) Steven W Barrett SRA SRPA Inspect Property Proprietary Land Form 04188 f:nrtif:nrl f_......w..r n.......:--__ '~N'°"c' ""°""°"""9""'°"""° "'°123°a'~'~aaw8°~^ Certified General Appraiser S.W. Barrett Real Estate Sr Appraisal Services ADDENDUM Borrower: Mary STAMY (Estate) File No.: 08-0129 Property Address: Greenspring Road Case No.: Cily: Newville. State: PA Zip: 17241-9624 Lender: Hamilton C. Davis, Esquire Comments on Sales Comparison Subject outbuildings include a 16,200 square foot bankbarn and a 4,464 square foot livestock building and silo as well as several smaller outbuildings. All comparables are of larger acreage with similar outbuildings; however, they all have single family residences which are adjusted for on the sales comparison grid. Comparable #2 included three parcels, # 08-11-0292-010 at $113.51 acres, #OS-11-0292-01'I at 2.61 acres and #08-11-0292-012 at 12.23 acres. n rage i or i SUBJECT PROPERTY PHOTO ADDENDUM Borrower: Mary STAMY (Estate) File No.: 08-0129 Property Address: Greenspring Road Case No.: City: Newville State: PA Zip: 17241-9624 Lender: Hamilton C. Davis Es uire FRONT VIEW OF SUBJECT PROPERTY ~. ~~; ?~~', ~'- ~ :i~ ~` j5 i i a r i ,~~. ~ 1~ 7l ~ i~F 1 ~ u i ~ ~~ ~It~ ~°~t~~~r~~~~~~~~~~n)~~f~~x~~~,r~~~.~~ ~ ~~ _ v= ~~;-~ -~~ t ~. Y~~"~. f f 2E y+t i A Y~*, u ,f Appraised Date: March 4, 2008 Appraised Value: $ 1,117,000 REAR VIEW OF SUBJECT PROPERTY STREET SCENE Borrower: Mary STAMY (Estate) File No.: 08-0129 Property Address: Greenspring Road Case No.: City: Newville State: PA Zip: 17241-9624 Lender: Hamilton C. Davis Es uire ~~ ,. ~ _ '~ --^"= Borrower: Mary STAMY (Estate) File No : 08-0129 Property Address:Greenspring Road Case No.: City: Newville State' PA Zip' 17241-9624 Lepder: Hamilton C. Davis, Esquire i~ ~°q' s ~ ~ a ~ y K 1 'W~-' Borrower: Mary STAMY (Estate) File No.: 08-0129 Property Address: Greensprinn Road Case No.: City: Newville State: PA Zip: 17241-9624 Lender: Hamiltpn C. Davis Es uire LOCATION MAP Borrower: Mary STAMY (Estate) File No.: 08-0129 Property Adcfress: Greenspring Road Case No.: City: Newville State: PA Zip: 17241-9624 _ Lender: Hamilton C. Davis Es uire ;oil ', c ~ .. 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N '.P . . ! _ '-. 8~ ~t , ~ ~ ' N~ Pp, e p-`' '' . e ~; •~ , coup 3 1,.,_.~ ~~ ~ ~ ~; J ~~ . , ~ .. ~~ ~ .. i .. _ .JC" I I. ~ :? .L ; ~;:~' o" ~ ., . i - i v - Tea! --- - i `yn ~,- 1~.-, . -- ~ .~ s '~00 ~ ~ - ~~'~ E y wr..s i ~' o ~ . o a-y~ ~ ~,e'1 ~ ~ ;i% IN z•S~° i .o i ,i~~. -- - G _ _ i'. i o ,a p 0 o `a ,~d i •.~ ~:o ! ~ R.~ i ~ ~ F 0 -~ _ _ _ c ' i, c ~a F . ~0. r' I I MaP (C)1984 008 TC 1'eryAt la3 IdA InC ~~~0 ~ ,/ _ 1 ! f Prepared by Steven W. Barrett RE A.ppr.Svc.(7171243-6646 I File No. 08-0129 ********* QUALIFICATIONS ********* The following checked items are SPECIFIC SPECIAL CONDITIONS that were identified by this appraiser during the inspection of the subject property, the comparables sales, and their neighborhoods and locations. Unless otherwise noted, the conditions that apply to the subject property or the comparable sales used DO NOT AFFECT THE MARKET VALUE OR THE FUTURE MARKETABILITY OF THE SUBJECT PROPERTY BEING APPRAISED. This is not a home inspection service. This is an appraisal to estimate market value. _x_1. The subject is located in a rural area and is less than 25% built-up. _2. Commercial/Industrial uses are located within the subject's neighborhood. These uses are typical of similar neighborhoods. _x_3. Vacant and undeveloped land uses are located within the subject's neighborhood. These uses are typical for the area. _x_4. The predominant value in the neighborhood is less than that of the market value of the subject property. This is due to the very wide range of value of properties in the area and superior quality of the subject property. _5. The subject property is located in a F.E.M.A. Identified Flood Zone. Flood insurance coverage is required and suggested. _6. Dampness is noted in the basement of the subject. Standing or running water was not present on basement floor. This condition is considered typical in dwellings of this style. _x_7. The subject property is serviced by private well andlor septic systems which is common for the area. _8. The subject is older than five(5) years. All mechanical systems including the heating, electrical and plumbing systems appear upon a visual exterior inspection to be in working order. No warranties are implied in this statement. _9. Repair items were noted in the comments section of the report. These comments on repair items are for descriptive purposes only and are not required repairs. The items listed are cosmetic in nature. _10. The basement floor is a dirt floor. This condition is common and typical for the area. and does not pose a health or safety hazard. _11. The subject property does contain functional obsolescence as noted in the report. This condition is considered typical and common for the area and this style dwelling. _12. The land value exceeds 30% of total value due to the high demand for vacant land in this neighborhood. This condition is considered common and typical for the neighborhood. _73. The land value exceeds 30% of total value. This is due to the large size of the site. This condition is considered to be typical and common. 14. Individual adjustments were required that exceed 15%. These adjustments were required due to lack of more similar comparables on that individual rating. All comparables used are the best available. _15. Total adjustments exceed 25%. This is due to the lack of comparable sales that were more similar in the subject's market area. All comparables used are the best available. _x_16. One or more comparable sales are older than six(5) months. Although there are comparable properties in the subject's area, none have sold recently; therefore, sales in excess of six(5) months have to be used. All comparables used are the best available. _x_17. One or more comparables used were in excess of one (1) mile from the subject property. Although there are comparable properties in the immediate area, none have sold recently. Therefore, it was necessary to use comparable sales outside of the immediate area. All comparables used are located in similar neighborhoods and within the same marketing area. All comparables used are the best available. _18. The electrical system was not connected during inspection. _19. The water service was not connected during inspection. 20. The heating system was shut down during inspection. _21. Roofing_Plumbing_Electrical_Heating_certification(s) is/are suggested. _22. Inground swimming pool-, out buildings are included ,not included according to lender's guidelines. _23. According to lender's guidelines a maximum of_acres were considered for this valuation. Remaining acreage was given no value. Flle No. 08-0129 ********* QUALIFICATIONS ********* _24. The subject property is located on a private road. 25. Wood infestation inspection is suggested. x 26. Last recorded deed transfer: Date_10111/1996_, Consideration: $_1.00 _27. Proposed construction/renovation in accordance to plans and specifications to be completed in a workman-like manner. _28. Seller is paying part or all of closing costs. _x_29. All comparable sales are verified closed sales. _x_30. There are no special conditions or other requirements that would affect market value or future marketability in the Appraisal Report. File No. 08-0129 ********* QUALIFICATIONS ********* Confidentiality and Security Policy We consider privacy to be fundamental to our relationship with clients. We are committed to maintaining the confidentiality, integrity and security of clients' personal information. Internal policies have been developed to protect this confidentiality, while allowing client needs to be served. We restrict access to personal information to authorized individuals who need to know this information to comply with federal standards to protect your nonpublic personal information. We do not disclose this information about you or any former consumers or customers to anyone, except as permitted by law. The law permits us to share this information with our affiliates. The law also permits us to share this information with companies that perform marketing. When we share nonpublic information referred to above, the information is made available for limited purposes and under controlled circumstances. We require third parties to comply with our standards for security and confientiality. We do not permit use of consumer/customer information for any other purpose nor do we permit third parties to rent, sell, trade or otherwise release or disclose information to any other party. Education As of the date of this report, land/or Steven W. Barrett, SRPA, SRA, ASA have completed the requirements under the continuing education program of the Appraisal Institute. File No. 08-0129 DEFINITION OF MARKET VALUE: 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: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) 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. 'Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the Appraiser's judgment. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Arear. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 10. The appraiser must provide his or her prior written consent before the lenderlclient specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lenderlclient may distribute the property description section of the report only to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Vacant Land Page 1 of 2 APPRAISERS CERTIFICATION: The Appraiser certifies and agrees that: File No. 08-0129 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to , or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and Limiting Conditions specked in this form. 4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for pertorming this appraisal is contingent on the appraised value of the property. 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation andlor employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan. 7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8. I have personally inspected the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: Greenspring Road, Newville, PA, 17241-9624 APPRAISER: ~~ `ar Signature: -~- ~>~k~; : , ~ T~ Y r s•.~_ r ~:,~._.'~. Name: Stan A. Skowronek Date Signed: 05!13/2008 State Certification #: RL001572L or State License #: State: PA Expiration Date of Certification or License: June 30, 2009 Certified General Appraiser SUPERVISORY APPRAISER (only if required) ~~,_ ~~ ~ _ Signature: ---' "--- ~---~~ Name: Steven W. Barrett, SRPA, SRA, ASA Date Signed: 05!13!2008 State Certification #: GA000298L or State License #: R6026921A State: PA Expiration Date of Certification or License: June 30, 2009 X^ Did ^ Did Not Inspect Property Certified General Appraiser Vacant Land Page 2 of 2 Page 1 of 2 Hamilton Davis From: Bruce Kile [bwkile@embargmail.com] Sent: Monday, August 11, 2008 2:19 PM To: hamiltondavis@comcast.net Subject: Stamy Appraisal Dear Mr. Davis, I simply entered the wrong figure for the stand #6 when transferring figures for my worksheets. Thank you for auditing. I apologize for this error. Bruce W. Ki le }'resent Vutue _. Stand ~ t 537.344..$7' ~1 7.x,640. S2 hd 1,994.'1.6 ~S x,790.1 ~6 _$,7fiT.131 56~?,S.xT.Srratut prE.senc value of prerrercha,riabip rlmbnr Yavr'tY tncrerr5~ Sand ~ l S )94 jacre/yrx S.C~ acres -~ 5t,~i2.' 7 ?80 /ucreJ yr x1..3 acres M ~4d d 100 / aer€/ yr' x a _ l acres ~~~ ! 1 l3 5 40 l acre/Yr x d.(7 acmes := 360 ~ f a"C?,~ PCre/yr:Y_~.:%acre ..:~=._ ~3SS S3,S93 Bruce 4S' Xt1e, 1'ciresa~r 8/25/2008 Forestry Services Bruce W. Kite, Forester 960 Flohrs Church Road Biglerville, Pa 17307 Ph 717 334-7854 Spencer Starry 525 Green Spring Road Newville, PA 17241 7/23/08 l have appraised the present value of your premerchantable timber as you requested. used a traditional and accepted method of estimating this value, namely "compounded cost". This includes all the timber production costs to the stands current age, and accounting for the rime value of the money that has been invested in the stands. To estimate the total value, the land value must be added to these premerchantable timber values.. Stand # 1 Red Oak/ White Ash - 5.6 acres -planted 1990 - 18 yrs. - 12' x l 2' spacing = 300 trees/ acre Material Cost $ l , 500/ acre Labor Cost 900/ acre $2,400/ acre $2,400 x 1.05(] 8) _ $5,775.87/acre x 5.6 acres = $32,344.87 present value increasing by $290 /acre each of the next 3 yrs Stand #2 Black Walnut - 2.3 acres -planted 1991 trees /acre Material Cost $1, SOD /acre Labor Cost 900 /acre $2,400 - 17 yrs. - 12' x 12' spacing = 300 $2,400 x 1.05(17) _ $5,495.88/acre x 2.3 acres = $12,640.52 present value increasing by $280 /acre each of the next 3 yrs. Stand #4 Norway Spruce - 1.1 acres -planted 1997 - l l yrs. - 8' x 8' spacing = 680 trees /acre Material Cost $550 /acre Labor Cost 5T 0 /acre $1060 /acre $1060 x 1.05(1 I) _ $ 1812.96 / acre x 1.1 acres = $1.994.26 present value increasing by $100 /acre each o f the next 3 yrs. Stand #5 Riparian/Wetland Planting - 4 acres -planted 2002 - 6 yrs. - 16' x 16' spacing = 170 trees /acre Material Cost $850 /acre Labor Cost $510 /acre $1360 /acre $1360 x 1.05(6) _ $1,822.52 / acre x 4.0 acres = $7.290.11 present value increasing by $90 /aces each of the next 3 yrs. Srand #6 Hog Lot Planting - 5.7 acres -planted 2003 - 5 yrs 16' x 16' spacing on 2.85 acres = 484 trees Material Cost $850 /acre Labor Cost 900 /acre $ l , 750 /acre $1,750 x 1.05(5) _ $2,233.49 x 2.85 acres = $6,365.45 present value increasing by $ l 10 /acre each o f the next 3 yrs. 10' x 10' spacing on 2.85 acres = 1243 trees Material Cost $218 /acre Labor Cost 305 /acre $523 /acre $523 x 1.05(5) _ $667.49 x 2.85 acres = $1.902.36 Present Value increasing by $40 /acre each of the next 3 yrs. Present Value Stand # 1 $32, 344.87 #2 12, 640.52 #4 1, 994.26 #5 7, 290. l 1 #6 14,633.26 $68,903.02 total present value of premerchantable timber Yearly Increase Stand # 1 $ 290 /acre/ yr x 5.6 acres = $1, 624 2 280 /acre/ yr x 2.3 acres = 644 4 100 /acre/ yr x 1.1 acres = 110 5 90 /acre/yr x 4.0 acres = 360 6 150/ acre/vr x 5.7 acres = _ .__855 $3, 593 Bruce W. Kite, Forester ADA~~~IS COUNI~' NA I'IONAL BAl~TK FAR~VII <RS NATIONAL BANK OF NEWVILLE ,9 Division ofAdamr Corm ry Nnxinnn7 Bank CHECKING STATEMENT Statement Date: 04/17/08 Account #: 131164 **********AUTO**ALL FOR AADC 170 1449 0.8240 AB 0.341 7 3 62 I~~~III~~~I~~I~I~I~~I~~JILI~~~II~~~~LIJ~~I~~I~LI~1~1~~~11 MARY F STAMY 525 GREEN SPRING RD NEWVILLE PA 17241-9624 801 Page 1 Lock in your rate today for peace of mind. our Home Equity Line has a fixed rate, so tap it, repay, and tap it again. stop by one of our offices or call 1.888.334.2262 for more info. or, apply today at www.acnb.com. Equal Housing Lender. Equal Opportunity Lender. Member FDIC. ESTEEM CHECKING Account # 131164 Account Summary Beginning Balance Activity Ending Balance Previous Statement Balance 03/18/08 $3, 545.67 + Deposits and Other Credits .00 -Checks Paid or Other Debits .00- -Service Charges .00- +Interest Paid .15 Ending Balance $3,545.82 Days in Statement Period 30 Account Detail Date Activity Description Deposits/Credits Checks/Debits Balance BEGINNING BALANCE 3, 545.67 04-17 INTEREST PAYMENT .15 3, 545.82 04-17 ENDING BALANCE 3, 545.82 Interest Summary From 03/19/08 Through 04/17/08 Days in Statement Period 30 Interest Earned $.15 Annual Percentage Yield Earned .05% Interest Paid This Year $.71 Interest Withheld This Year $.00 Overdraft Fees /Refunds Summary Description Fees for Returned Items Fees for Paid Items This Cycle YTD .00 .00 .00 .00 P.O. Box 3129, GETTYSBURG, PA 17325 ~ PxotvE 717.334.3161 TotL FxEE 1.888.334.ACNB (2262) www.acnb.com Page z 131164 Overdraft Fees /Refunds Summary {cont.) Description Fees from Service Charge Total Fees Charged Total Fees Refunded Description Refund of Returned Item Fees Refund of Paid Item Fees This Cycle YTD .00 .00 .00 .00 .00 .00 This Cycle YTD .00 .00 .00 .00 END OF STATEMENT 4: ._._ .. _ ~:< 2 :, <: ..... ... .... ..... .. ..u _o., ..~~id.Lt d ~TOi.~C ~. ;L FTCLtG it ~.. .... ..;.> ., ..,. .t_.:5, ...,_. __ ( .._. _..........~ t ~_...."C: ^C!:`.3C._ ..:Y _Eii'',:; c. ;c1.0 . t: _F~~)~. .. $, .,. J i.., M&T Bank :Personal Banking Nome (About Us ~ Investor Relations (Employment (Branches & ATMs (Privacy i Contact Us Search: a ~• t i --' ._.. .,• - ~.~~,. ~`.L_ $"i's~ a. ^i"~"uRA1.7 .:`&°"h"'4~ .w~7R~~ :. a"a'# ~a^S+w' ~hffi~S9~3L~t"~YYS.,'ws1'~L4:-wM.,#s.' «..:: .. _- ~_. ~- Personal ~ Small Business ~ Comrnerclal i ~ Community I i__ _ _ . . '- '~ Stock Information ~- ._ t Stock_Table ~ Stock_Chart ~ Historical-_Stock._Price "`y ~ M&T Bank (MTB): as of 4:01 PM EST an May 06 Who Is M&T Corporate Governance News Releases Investor Relations Annual Reports Acquisitions Analyst Coverage SEC Filings Section 16 SEC Filings Stock Information Shareholder Information FAQ's Webcasts Presentations Calendar of Events Email Alerts Contact Information high low open prev bid -ask 52-wk range 94.59 95.26 92.30 93.20 close N/A - N/A 115.81 - 70.49 94.02 + 0.57 t 0.61 % volume p/e eps dividend yield market cap 687,100 15.27 6.19 2.80 2.96 10,415,120,000 ~ M & T BK CORR 1 Year Chart as of Sf5/2008 Daily ~ .~ ~~~~ n ~,,~. May Jun Jul Aug Sep Oct NoV Dec 200$ Feb Mar Apr 3 -~- - r-- -~'!{ 1 _ _ _ _ C ~ ~ f i "t o ~; T ~ I ~ 6 ~- ~ Iii ~klt~~A`a~ ° ~ ttlyat r rt , ~. ~~~f tai ri .;1F3 :3., i r'@i i ..~ -~ ~~ _.~....-... ._...-..r_- 0 120.00 iio,oo ioo.ao 90,00 so.oo ~o.oo 6a,oo .58 M .69 .79 .90 .OQ Period 1 Year I~~ I'Ii Bench None Pag M1y Accounts Historical Price Lookup ~~ Volume Percent Select a date to determine the cost basis per share on that date. 2008 March....... !~ 04 °~ M8T Bank Corporation(MTB) - as of March 04, 2008 High Low Open Close Volume $79.92 $77.43 $79.26 $79.40 1,804,002 For Historical Price information on Keystone Financial, Inc., click here. http : //ir. mandtbank. com/stock. cfm 5/7/2008 Date Tax _ _ ~ ~v Opened: 10 / 2 9/ 2 0 0 7 Term: 7 MONTH ID. 19 6 3 8 618 4 Number: Certificate of Deposit FARMERS NATIONAL BANK • OF NEWVILLE - A DIVISION OF ADAMS COUNTY NATIONAL BANK NEWVILLE PA 17241 ..... B Y DOUGLA LINDS Y Amount of Deposit: SEVENTEEN THOUSAND AND 00/100 $ 17.000.00 This Time Deposit is Issued to: Issuer: SPENCER A STAMY MARY F STAMY 525 GREEN SPRING ROAD NEWVILLE PA 17241 Not Negotiable -Not Transferable -Additional terms are below. Additional Term' This form contains the terms for your time deposit. It is also the Truth-in-Savings disclosure for those depositors entitled to one. There are additional terms and disclosures on page two of this form, some of which explain or expand on those below. You should keep one copy of this form. Maturity Date: This account matures 0 5/ 2 9/ 2 0 0 8 (See below for renewal information.) Rate Information: The interest rate for this account is 4.750 % with an annual percentage yield of 4 .85 %. This rate will be paid until the maturity date specified above. Interest begins to accrue on the business day you deposit any noncash item (for example, a check). Interest will be compounded MONTHLY Interest will be credited EVERY 7 MONTH (S ) BY ADDING BACK TO THE ACCOUNT The annual percentage yield assumes that interest remains on deposit until maturity. A withdrawal of interest will reduce earnings. and Disclosures Minimum Balance Requirement: You must make a minimum deposit to open this account of $ 5 0 0. 0 0 ~ You must maintain this minimum balance on a daily basis to earn the annual percentage yield disclosed. Withdrawals of Interest: Interest ^ accrued ~ credited during a term can be withdrawn: AT MATURITY . Early Withdrawal Penalty: If we consent to a request for a withdrawal that is otherwise not permitted you may have to pay a penalty. The penalty will be an amount equal to: THREE (3) MONTHS OF INTEREST interest on the amount withdrawn. Renewal Policy: ^ Single Maturity: If checked, this account will not automatically ^ If you close your account before interest is credited, you will not renew. Interest ^ will ^ will not accrue after maturity. receive the accrued interest. ~ Automatic Renewal: If checked, this account will automatically The NUMBER OF ENDORSEMENTS needed for withdrawal or any other purpose is: 1 renew on the maturity date. (see page two for terms) Interest ^ will ~ will not accrue after final maturity. ACCOUNT OWNERSHIP: You have requested and intend the type of account marked below. ^ Individual ~" (and not as tenants IXlSJOInt Account -With Survivorship in common) ^ Joint Account - No Survivorship (as tenants ~, commnn> ^ Trust: Separate Agreement Dated ^ Revocable Trust Designation as defined in this agreement (Beneficiaries' names and addresses) FORM 2 BACKUP WITHHOLDING CERTIFICATIONS TIN: 196-38-6184 ~ Taxpayer I.D. Number -The Taxpayer Identification Number shown above (TIN) is my correct taxpayer identification number. ~ Backup Withholding - I am not subject to backup withholding either because I have not been notified that I am subject to backup withholding as a result of a failure to report all interest or dividends, or the Internal Revenue Service has notified me that I am no longer subject to backup withholding. Account Number: 17 6 5 5 0 ^ Exempt Recipients - I am an exempt recipient under the Internal Revenue Service Regulations. A provision for my signature, certifying under penalty of perjury the statements checked in this section and that I am a U.S. person (including a U.S. resident alien), is contained on the first copy of this cert~cate. ENDORSEMENTS -SIGN ONLY WHEN YOU REQUEST WITIIDRAWAL X X X ,Ej O 1993 Bankers Systems, Inc., St. Cloud, MN Form CD-AA-NPD (1) 1 /3/2001 READ PAGE TWO FOR ADDITIONAL TERMS Ipage 1 of 2/ DEFINITIONS: "We," "our," and "us" mean the issuer of this account and "you" and "your" mean the depositor(s). "Account" means the original certificate of deposit as well as the deposit it evidences. TRANSFER: "Transfer" means any change in ownership, withdrawal rights, or survivorship rights, including (but not limited to) any pledge or assignment of this account as collateral. You cannot transfer this account without our written consent. PRIMARY AGREEMENT: You agree to keep your funds with us in this account until the maturity date. (An automatically renewable account matures at regular intervals.) You may not transfer this account without first obtaining our written consent. You must present this certificate when you request a withdrawal or a transfer. This account is void if the deposit is made by any method requiring collection (such as a check) and the deposit is not immediately collected in full. If the deposit is made or payable in a foreign currency, the amount of the deposit will be adjusted to reflect final exchange into U.S. dollars. We may change any term of this agreement. Rules governing changes in interest rates have been provided. For other changes we will give you reasonable notice in writing or by any other method permitted by law. If any notice is necessary, you all agree that the notice will be sufficient if we mail it to the address listed on page one of this form. You must actif; us of any change. WITHI)RAWALS AND TRANSFERS: Only those of you who sign the permanent signature card may withdraw funds from this account. (In appropriate cases, a court appointed representative, abeneficiary of a trust account whose right of withdrawal has matured, or a newly appointed and authorized representative of a legal entity may also withdraw from this account.) The specific number of you who must agree to any withdrawal is written on page one in the section bearing the title " ...Number of Endorsements .... "This means, for example, that if two of you sign the signature card but only one endorsement is necessary for withdrawal then either of you may request withdrawal of the entire account at any time. These same rules apply to define the names and the number of you who can request our consent to a transfer. PLEDGES: Any pledge of this account (to which we have agreed), must first be satisfied before the rights of any joint account survivor beneficiary or trust account beneficiary become effective. For example, if one joint tenant pledges the account for payment of a debt and then dies, the surviving joint tenant's rights in this account are subject first to the payment of the debt. OWNERSHIP OF ACCOUNT AND BENEFICIARY DESIGNATION: You intend these rules to apply to this account depending on the form of ownership and beneficiary designation, if any, specified on page 1. We make no representations as to the appropriateness or effect of the ownership and beneficiary designations, except as they determine to whom we pay the account funds. Individual Account -Such an account is owned by one person. Joint Account With Survivorship (And Not As Tenants In Common) -Such an account is owned by two or more persons. Each of you intend that upon your death the balance in the account (subject to any previous pledge to which we have consented) will belong to the survivor(s). If two or more of you survive, you will own the balance in the account ownership as joint tenants with survivorship and not as tenants in common. Joint Account - No Survivorship (As Tenants In Common) -Such an account is owned by two or more persons but none of you intend (merely by opening this account) to create any right of survivorship in any other person. We encourage you to agree and tell us in writing of the percentage of the deposit contributed by each of you. This information will not, however, affect the "number of endorsements" necessary for withdrawal. Revocable Trust Account (subject to this agreement) - If two or more of you create such an account, you own the account jointly with survivorship. Beneficiaries cannot withdraw unless: (1) all persons creating the account die, and (2) the beneficiary is then living. If two or more beneficiaries are named and survive the death of all persons creating the account, such beneficiaries will own this account in equal shares, without right of survivorship. Any such beneficiary may withdraw all or any part of the account balance. The person(s) creating this account type reserves the right to: (1) change beneficiaries; (2) change account types; and (3) withdraw all or part of the deposit at any time. Trust Account Subject to Separate Agreement - We will abide by the terms of any separate agreement which clearly pertains to this account and which you file with us. Any additional consistent terms stated on this form will also apply. SET-OFF: You each agree that we may (without prior notice and when permitted by law) set off the funds in this account against any due and payable debt owed to us now or in the future, by any of you having the right of withdrawal, to the extent of such person's or legal entity's right to withdraw. If the debt arises from a note, "any due and payable debt" includes the total amount of which we are entitled to demand payment under the terms of the note at the time we set off, including any balance the due date for which we properly accelerate under the note. This right of set-off does n6t apply tG this aCCGl:nt if: (a) It IS an Individual Retirement Account or other tax-deferred retirement account, or (b) the debt is created by a consumer credit transaction under a credit card plan, or (c) the debtor's right of withdrawal arises only in a representative capacity. You agree to hold us harmless from any claim arising as a result of our exercise of our right of set-off. BALANCE COMPUTATION METHOD: We use the daily balance method to calculate the interest on this account. This method applies a daily periodic rate to the principal in the account each day. TRANSACTION LIMITATIONS: You cannot make additional deposits to this account during a term (other than credited interest). You cannot withdraw principal from this account without our consent except on or after maturity. (For accounts that automatically renew, there is a ten day grace period after each renewal date during which withdrawals are permitted without penalty.) In certain circumstances such as the death or incompetence of an owner of this account, law permits, or in some cases requires, the waiver of the early withdrawal penalty specified on page one. FOR ACCOUNTS THAT AUTOMATICALLY RENEW: Each renewal term will be the same as this original one, beginning on the maturity date (unless we notify you, in writing, before a maturity date, of a different term for renewal). You must notify us in writing before, or within a ten day grace period after, the maturity date if you do not want this account to automatically renew. Interest earned during one term that is not withdrawn during or immediately after that term is added to principal for the renewal term. The rate for each renewal term will be determined by us on or just before the renewal date. You may call us on or shortly before the maturity date and we can tell you what the interest rate will be for the next renewal term. On accounts with terms of longer than one month we will remind you in advance of the renewal and tell you when the rate will be known for the renewal period. See your plan disclosure if this account is part of an IItA. (page 2 of 2) E~j-~ O 1993 Bankers Systems, Inc., St. Cloud, MN Form CD-AA-NPD 1/3/2001 FARMERS NATIONAL BANK OF NEWVILLE - A DIVISION OF DLO ADAMS COUNTY NATIONAL BANK NEWVILLE PA 17241 TRUTH IN SAVINGS DISCLOSURE FOR T/ME ACCOUNTS Terms following a ^ apply only if checked. Acct: 7 MONTH SPECIAL CD Acct #: 176550 Date: OCTOBER 2 9 2 0 0 7 The interest rate and annual percentage yield stated below are accurate as of the date printed above. If you would like more current rate and yield information please call us at 888-334-2262 This disclosure contains the rules which govern your deposit account. Unless it would be inconsistent to do so, words and phrases used in this disclosure should be construed so that the singular includes the plural and the plural includes the singular. FIXED RATE: The interest rate for your account is 4.750 % with an annual percentage yield of 4.85 %. We will pay this rate UNTIL 05/29/2008 ^ The interest rate and annual percentage yield for your account depend upon the applicable rate tier. We will pay these rates ^ The interest rate will not be less than or more than %. ^ The interest rate will not the interest rate initially disclosed to you. COMPOUNDING AND CREDITING: Frequency -Interest WILL be compounded MONTHLY Interest will be CREDITED TO PRINCIPAL BALANCE ^ VARIABLE RATE: ^ The interest rate for your account is with an annual percentage yield of %. Your interest rate and annual percentage yield may change. ^ The interest rate and annual percentage yield for your account depend upon the applicable rate tier. The interest rate and annual percentage yield for these tiers may change. Determination of Rate: ^ At our discretion, we may change the interest rate on your account. ^ The interest rate for your account ^ The fixed initial rate is not determined by this rule. ^ The initial interest rate on your account Subsequent rates Frequent y of Rafe Change: ^ We may change the interest rate on your account Your initial interest rate will not change UNTIL 05/29/2008 We may change the interest rate on your account at that time and thereafter. Limitations on Rate Changes: ^ The interest rate for your account will not Foxrt ii by more than each ~~® ©1992 Bankers Systems, Inc., St. Cloud, MN Form TSD-TIME 6/17/2005 Withdraws! of /nterest Before Maturity. The annual percentage yield assumes that interest remains on deposit until maturity. A withdrawal of interest will reduce earnings. ^ Required /nterest Distribution. This account requires the distribution of interest and does not allow interest to remain in the account. ~ffect on Closing an Account. If you close your account before interest is credited, you WILL receive the accrued interest. MINIMUM BALANCE REQUIREMENTS: To Open the Account. You must deposit at least S 500.00 to open this account. To Obtain the Annue/ Percentage yie/d Disc%sed. You must maintain a minimum balance of S 500.00 in the account each day to obtain the disclosed annual percentage yield. ^ You must maintain a minimum average daily balance of S to obtain the disclosed annual percentage yield. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. The period we use is BALANCE COMPUTATION METHOD: Daily Ba/ante Method. We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. ^ Average Daily Ba/ante Method. We use the average daily balance method to calculate interest on your account. This method applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. The period we use is ACCRUAL OF INTEREST ON NONCASH DEPOSITS: ^ Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks. Interest begins to accrue ON THE SAME DAY you deposit noncash items (for example, checks). MATURITY DATE: Your account will mature on 05/29/2008 ^ Your account will mature in ^ We may accelerate the maturity or call this account, at our option, /page 1 of 21 ^ Your account has no definite maturity date. To withdraw any or part of this deposit without penalty, we must receive at least written notice from you of your intention to make a withdrawal. The notice must specify the exact amount and date of the intended withdrawal. Interest will no longer accrue after the withdrawal date specified in your notice on the amount specified in your notice. We may terminate this account by mailing a notice to you of our intention to terminate at least ten days before the termination date. The date of intended withdrawal of the last funds in the account, or the termination date, is considered to be the maturity date. TIME DEPOSIT WITHDRAWAL LIMITATIONS: ~Principa/.• YOU CANNOT WITHDRAWAL PRINCIPAL FROM THIS ACCOUNT, WITHOUT OUR CONSENT EXCEPT ON THE MATURITY DATE, OR DURING THE TEN (10) DAY GRACE PERIOD FOLLOWING THE MATURITY DATE. ^ /nterest: XIx~/nterest Timing: You can withdraw interest AT MATURITY. EARLY WITHDRAWAL PENALTY: A penalty ®Xmay ^ will be imposed for withdrawals before maturity. The penalty will be an amount equal to: ^ Seven days' interest on the amount withdrawn if the withdrawal is made within the first six days after the deposit. ^ 180 days' interest on the amount withdrawn ^ 90 days' interest on the amount withdrawn ^ 30 days' interest on the amount withdrawn THREE (3) MONTHS OF INTEREST ®{ The interest rate we will use to calculate the interest forfeiture will be: THE CURRENT RATE OF THE CERTIFICATE OF DEPOSIT. We will charge the penalty first against any interest then in the account, and any excess will be deducted from the amount you withdraw. ~If you withdraw some of your funds before maturity, the interest rate for the remaining funds in your account will be 4.750 % with an annual percentage yield of 4.85 %. Minimum Balance Accounts. We reserve the right to, treat any withdrawal which would reduce the balance remaining in the account below the required minimum initial deposit or minimum balance as a withdrawal of the entire account balance and calculate the amount of the penalty accordingly. In certain circumstances, such as the death or incompetence of an account owner, the law permits, or in some cases requires, the waiver of the early withdrawal penalty. Other exceptions may also apply,, for example, If this is part of an IRA or other tax-deferred savings plan. ADDITIONS TO ACCOUNT: ^ You may make no more than deposits into your account each XnX You may only make deposits into your account ON THE MATURITY DATE AND DURING THE TEN (10) DAY GRACE PERIOD FOLLOWING THE MATURITY DATE. ~® ©1992 Bankers Systems, Inc., St. Cloud, MN Form TSD-TIME 6(17/2005 ^ You may make unlimited deposits into your account. ^ You may not make any deposits into your account until maturity. ^ The minimum amount you can deposit is S ^ The maximum amount you can deposit is S YOU CANNOT MAKE ADDITIONAL DEPOSITS TO THIS ACCOUNT DURING A TERM (OTHER THAN CREDITED INTEREST). RENEWAL POLICY: ^ Sing/e Maturity: This account will not renew automatically at maturity. If you do not renew the account, Automatic Renewa/.- This account will automatically renew at maturity. YOU will have TEN (10) CALENDAR days after the maturity date to withdraw funds without penalty. Exceptions to Automatic Renewal.- This account will not renew if you withdraw the funds on the maturity date or if we receive written notice from you on or before the maturity date of your intention not to renew. ^ There is no grace period following the maturity of this account to withdraw funds without penalty. RENEWAL TERMS: ^ Same Term As Origins/.• Each renewal term will be the same as the original term, beginning on the maturity date. Different Term: Each renewal term will be TWELVE MONTHS ,beginning on the maturity date. RENEWAL INTEREST CALCULATION: ~XSame /nterest Calcu/ation: Interest will be calculated on the same basis as during the original term. ^ Different /nterest Ca/cu/ation: The interest rate will BONUSES: ^ You will as a bonus ^ You must maintain a minimum to obtain the bonus. ^ To earn the bonus, of S PRE-MATURITY NOTICE: Your account will mature on 05/29/2008 . If the account renews, the new maturity date will be TWELVE MONTHS ^ The interest rate for the renewed account will be with an annual percentage yield of %. The interest rate and annual percentage yield have not yet been determined. They will be available on 05/29/2008 Please call 888-334-2262 to learn the interest rate and annual percentage yield for your new account. ^ ADDITIONAL TERMS: FORM 211 (page 2 of 2) 7 MONTH SPECIAL CD OCTOBER 29 ,2007 176550 ADDITIONAL TRUTH IN SAVINGS DISCLOSURES ***7 MONTH SPECIAL CD*** THE 7 MONTH SPECIAL CD IS AVAILABLE AT ALL OF THE BANK'S RETAIL BANKING LOCATIONS FOR A LIMITED TIME. A MINIMUM DEPOSIT OF $500 IS REQUIRED TO OPEN THE ACCOUNT, AS WELL AS TO EARN THE ANNUAL PERCENTAGE YIELD. THERE IS A MAXIMUM DEPOSIT AMOUNT OF $250,000 PER DEPOSITOR FOR REGULAR CD'S. THERE WILL BE NO JUMBO RATE GIVEN ON BALANCES OF $100,000 OR MORE DOES NOT QUALIFY FOR THE CD BONUS RATE IN EFFECT FOR RELATIONSHIP CHECKING ACCOUNTHOLDERS. THE 7 MONTH SPECIAL CD WILL AUTOMATICALLY REINVEST AT MATURITY INTO A 12 MONTH CD. THE INTEREST RATE AND ANNUAL PERCENTAGE YIELD WILL BE DETERMINED AT THE TIME OF REINVESTMENT. YOU CAN CALL THE BANK TOLL-FREE AT 888-334-ACNB(2262) TO OBTAIN CURRENT INFORMATION. AFTER MATURITY, INTEREST ON THE REINVESTED ACCOUNT WILL BE PAID ANNUALLY AND ADDED TO THE BALANCE IN THE ACCOUNT. SHOULD YOU WISH TO CHANGE THIS METHOD OF PAYMENT, PLEASE CONTACT THE BANK TOLL- FREE AT 888-334-ACNB(2262). FORM 311 Date Tax Opened: 0 8/ 2 8/ 2 0 0 6 Term: 9 MONTH ID: 19 6- 3 8- 618 4 Number: Certificate of Deposit Amount of Deposit: TEN THOUSAND AND 0 0 / 10 0 $ 10.0 0 0 . 0 0 This Time Deposit is Issued to: Issuer: ____ .. FARMERS NATIONAL BANK '• SPENCER A STAMY OF NEWVILLE - A DIVISION OF MARY F STAMY ADAMS COUNTY NATIONAL BANK 525 GREEN SPRING ROAD NEWVILLE PA 17241 NEWVILLE PA 17241 .... ~--- Not Negotiable -Not Transferable -Additional terms are below. By DOUG R INDSAY This form contains the terms for your t Truth-in-Savings disclosure for those depositors entitled to one. There are additional terms and disclosures on page two of this form, some of which explain or expand on those below. You should keep one copy of this form. Maturity Date: This account matures 0 5/ 2 8/ 2 0 0 7 (See below for renewal information.) Rate Information: The interest rate for this account is 4.940 with an annual percentage yield of 5.05 %. This rate will be paid until the maturity date specified above. Interest begins to accrue on the business day you deposit any noncash item (for example, a check). Interest will be compounded MONTHLY Interest will be credited EVERY 9 MONTH (S ) BY ADDING BACK TO THE ACCOUNT The annual percentage yield assumes that interest remains on deposit until maturity. A withdrawal of interest will reduce earnings. ^ If you close your account before interest is credited, you will not receive the accrued interest. The NUMBER OF ENDORSEMENTS needed for withdrawal or any other purpose is: 1 open this account of $ 5. 0 0 0. 0 0 ~ You must maintain this minimum balance on a daily basis to earn the annual percentage yield disclosed. Withdrawals of Interest: Interest ^ accrued ~ credited during a term can be withdrawn:AT MATURITY Early Withdrawal Penalty: If we consent to a request for a withdrawal that is otherwise not permitted you may have to pay a penalty. The penalty will be an amount equal to: THREE (3) MONTHS OF INTEREST. interest on the amount withdrawn. Renewal Policy: ^ Single Maturity: If checked, this account will not automatically renew. Interest ^ will ^ will not accrue after maturity. ~ Automatic Renewal: If checked, this account will automatically renew on the maturity date. (see page two for terms) Interest ^ will ~ will not accrue after fmal maturity. ACCOUNT OWNERSHIP: You have requested and intend the type of account marked below. ^ Individual (and not as tenants Joint Account -With Survivorship in common) ^ Joint Account - No Survivorship caa tenant in common> ^ Trust: Separate Agreement Dated ^ Revocable Trust Designation as defined in this agreement (Beneficiaries' names and addresses) FORM 2 Additional Terms and Disclosures ime deposit. It is also the Minimum Balance Requirement: You must make a minimum deposit to BACKUP WITHHOLDING CERTIFICATIONS TIN: 196-38-6184 Taxpayer I.D. Number -The Taxpayer Identification Number shown above (TIN) is my correct taxpayer identification number. ~ Backup Withholding - I am not subject to backup withholding either because I have not been notified that I am subject to backup withholding as a result of a failure to report all interest or dividends, or the Internal Revenue Service has notified me that I am no longer subject to backup withholding. Account Number: 16 9 0 4 8 ^ Exempt Recipients - I am an exempt recipient under the Internal Revenue Service Regulations. A provision for my signature, certifying under penalty of perjury the statements checked in this section and that I am a U.S. person (including a U.S. resident alien), is contained on the first copy of this certificate. ENDORSEMENTS -SIGN ONLY WHEN YOU REQUEST WITHDRAWAL X X X E~ O 1 993 Bankers Systems, Inc., St. Cloud, MN Form CD-AA-NPD (1) 1 /3/2001 READ PAGE TWO FOR ADDITIONAL TERMS /page 1 of 2/ DEFINITIONS: "We," "our," and "us" mean the issuer of this account and "you" and "your" mean the depositor(s). "Account" means the original certificate of deposit as well as the deposit it evidences. TRANSFER: "Transfer" means any change in ownership, withdrawal rights, or survivorship rights, including (but not limited to) any pledge or assignment of this account as collateral. You cannot transfer this account without our written consent. PRIMARY AGREEMENT: You agree to keep your funds with us in this account until the maturity date. (An automatically renewable account matures at regular intervals.) You may not transfer this account without fast obtaining our written consent. You must present this certificate when you request a withdrawal or a transfer. This account is void if the deposit is made by any method requiring collection (such as a check) and the deposit is not immediately collected in full. If the deposit is made or payable in a foreign currency, the amount of the deposit will be adjusted to reflect final exchange into U.S. dollars. We may change any term of this agreement. Rules governing changes in interest rates have been provided. For other changes we will give you reasonable notice in writing or by any other method permitted by law. If any notice is necessary, you all agree that the notice will be sufficient if we mail it to the address listed on page one of this form. You must notify us of any change. WITHDRAWALS AND TRANSFERS: Only those of you who sign the permanent signature card may withdraw funds from this account. (In appropriate cases, a court appointed representative, abeneficiary of a trust account whose right of withdrawal has matured, or a newly appointed and authorized representative of a legal entity may also withdraw from this account.) The specific number of you who must agree to any withdrawal is written on page one in the section bearing the title " ...Number of Endorsements .... "This means, for example, that if two of you sign the signature card but only one endorsement is necessary for withdrawal then either of you may request withdrawal of the entire account at any time. These same rules apply to define the names and the number of you who can request our consent to a transfer. PLEDGES: Any pledge of this account (to which we have agreed), must first be satisfied before the rights of any joint account survivor beneficiary or trust account beneficiary become effective. For example, if one joint tenant pledges the account for payment of a debt and then dies, the surviving joint tenant's rights in this account are subject first to the payment of the debt. OWNERSHIP OF ACCOUNT AND BENEFICIARY DESIGNATION: You intend these rules to apply to this account depending on the form of ownership and beneficiary designation, if any, specified on page 1. We make no representations as to the appropriateness or effect of the ownership and beneficiary designations, except as they determine to whom we pay the account funds. Individual Account -Such an account is owned by one person. Joint Account With Survivorship (And Not As Tenants In Common) -Such an account is owned by two or more persons. Each of you intend that upon your death the balance in the account (subject to any previous pledge to which we have consented) will belong to the survivor(s). If two or more of you survive, you will own the balance in the account ownership as joint tenants with survivorship and not as tenants in common. Joint Account - No Survivorship (As Tenants In Common) -Such an account is owned by two or more persons but none of you intend (merely by opening this account) to create any right of survivorship in any other person. We encourage you to agree and tell us in writing of the percentage of the deposit contributed by each of you. This information will not, however, affect the "number of endorsements" necessary for withdrawal. Revocable Trust Account (subject to this agreement) - If two or more of you create such an account, you own the account jointly with survivorship. Beneficiaries cannot withdraw unless: (1) all persons creating the account die, and (2) the beneficiary is then living. If two or more beneficiaries are named and survive the death of all persons creating the account, such beneficiaries will own this account in equal shares, without right of survivorship. Any such beneficiary may withdraw all or any part of the account balance. The person(s) creating this account type reserves the right to: (1) change beneficiaries; (2) change account types; and (3) withdraw all or part of the deposit at any time. Trust Account Subject to Separate Agreement - We will abide by the terms of any separate agreement which clearly pertains to this account and which you file with us. Any additional consistent terms stated on this form will also apply. SET-OFF: You each agree that we may (without prior notice and when permitted by law) set off the funds in this account against any due and payable debt owed to us now or in the future, by any of you having the right of withdrawal, to the extent of such person's or legal entity's right to withdraw. If the debt arises from a note, "any due and payable debt" includes the total amount of which we are entitled to demand payment under the terms of the note at the time we set off, including any balance the due date for which we properly accelerate under the note. This right of set-off does not apply to this account if: (a) it is an Individual Retirement Account or other tax-deferred retirement account, or (b) the debt is created by a consumer credit transaction under a credit card plan, or (c) the debtor's right of withdrawal arises only in a representative capacity. You agree to hold us harmless from any claim arising as a result of our exercise of our right of set-off. BALANCE COMPUTATION METHOD: We use the daily balance method to calculate the interest on this account. This method applies a daily periodic rate to the principal in the account each day. TRANSACTION LIMITATIONS: You cannot make additional deposits to this account during a term (other than credited interest). You cannot withdraw principal from this account without our consent except on or after maturity. (For accounts that automatically renew, there is a ten day grace period after each renewal date during which withdrawals are permitted without penalty.) In certain circumstances such as the death or incompetence of an owner of this account, law permits, or in some cases requires, the waiver of the early withdrawal penalty specified on page one. FOR ACCOUNTS THAT AUTOMATICALLY RENEW: Each renewal term will be the same as this original one, beginning on the maturity date (unless we notify you, in writing, before a maturity date, of a different term for renewal). You must notify us in writing before, or within a ten day grace period after, the maturity date if you do not want this account to automatically renew. Interest earned during one term that is not withdrawn during or immediately after that term is added to principal for the renewal term. The rate for each renewal term will be determined by us on or just before the renewal date. You may call us on or shortly before the maturity date and we can tell you what the interest rate will be for the next renewal term. On accounts with terms of longer than one month we will remind you in advance of the renewal and tell you when the rate will be known for the renewal period. See your plan disclosure if this account is part of an IRA. /page 2 of 21 ~~ ©1993 Bankers Systems, Inc., St. Cloud, MN Form CD-AA-NPD 1 /3/2001 ADAMS COUNTY NATIONAL BANK 5- 2 9- 2 0 0 7 FARMERS NATIONAL BANK OF NEW VILLE a urvisrow oFaoamrs courvrr rvarroNac saNrc CERTIFICATE OF DEPOSIT REINVESTMENT NOTICE DEAR CUSTOMER: THANK YOU FOR RENEWING YOUR CERTIFICATE OF DEPOSIT. WE HAVE REINVESTED YOUR FUNDS ACCORDING TO YOUR INSTRUCTIONS OUTLINED BELOW. PLEASE CALL (888) 334-2262 EXT-NONE IF YOU HAVE ANY QUESTIONS REGARDING YOUR ACCOUNT. *---DETAIL INFORMATION----* CERTIFICATE: 169048 REINVESTMENT DATE: 5/28/07 SPENCER A STAMP NEW MATURITY DATE: 1/28/08 OR MARY F STAMP INVESTMENT TERM: 8 MONTHS 525 GREEN SPRING ROAD BALANCE: 10,375.61 NEWVILLE PA 17241 ___ ADAMS COUNTY NATIONAL BANK S -'? 5- 2 0 0 7 FARMERS NATIONAL BANK OF NEW VILLE a orvrsrox of aoanrs couNrr NarroN.tc eaNrc CERTIFICATE OF DEPOSIT REINVESTMENT NOTICE DEAR CUSTOMER: THANK YOU FOR RENEWING YOUR CERTIFICATE OF DEPOSIT. WE HAVE REINVESTED YOUR FUNDS ACCORDING TO YOUR INSTRUCTIONS OUTLINED BELOW. PLEASE CALL (888) 334-2262 EXT-NONE IF YOU HAVE ANY QUESTIONS REGARDING YOUR ACCOUNT. SPENCER A STAMP OR MARY F STAMP 525 GREEN SPRING ROAD NEWVILLE PA 17241 TM0365P1 *---DETAIL INFORMATION----* CERTIFICATE: 169048 REINVESTMENT DATE: 5/28/07 NEW MATURITY DATE: 5/28/08 INVESTMENT TERM: 12 MONTHS BALANCE: 10,375.61 ADAMS COUNTY NATIONAL BANK CERTIFICATE OF DEPOSIT 5-23-2007 FARMERS NATIONAL BANK OF NEW V II,LE a nrvrsroN of ananrs courvrr rvar~orvac eaNx INTEREST DISBURSEMENT NOTICE C.D. NUMBER DATE OF C.D. ISSUE VALUE 169048 8-28-06 10,000.00 {{ ice~`. , ~ ,~,c~S +-e_ - ~2wR ~ o•-~ ~ • 2li -tj7 SPENCER A STAMP OR MARY F STAMP 525 GREEN SPRING ROAD NEWVILLE PA 17241 INT. PERIOD INT. RATE RENEWAL DATE 9 MONTHS 4.940 *------ DETAIL INFORMATION -----* BALANCE BEFORE- -INTEREST 10,000.00 INTEREST PAID 375.61 INTEREST WITHHELD .00 BALANCE AFTER- -INTEREST 10,375.61 PAYMENT DATE 5-28-07 MATURITY DATE 5-28-07 -_ ~.~ _-T ~-- __. _.._ __ _ _ .. _ -- - _ - Top -Proof Copy Bottom -Customer Copy CREDIT -CERTIFICATE OF DEPOSIT _ _ Account Number r~ _ Date ~ ~") .,i ~LV _1- ~ i i (~ r (~~ tt ~ ~ ~~~ ~i Account Title :, ~ 1 ~` ~ ~_Y.{ I~ e7 f ~~~LLi ..'~` ~ ~-~-r'.~YtA.(~/ ~ ~ -% ~ ~- ~. t t Y I @ Amount COMPLETE FOR REINVESTMENT ONLY VVV v `- `/' i Term 'tom ^ Days Cy'(vlonths Interest Frequency ^ Monthly CI Quarterly CSemi-Annually ^ Annually 0 At Maturity Interest Payment By J~Check Ca'Add to CD ~ Transfer to Account tt ~ ,t1~ y ~ CD Reinvestment Amo~int $ /~ 1 ~ ~ ~ ~ Next Matunty Date ~ ~ T +~- ~ `w~ Customer Signatur~.~.~"'~''~ ~~ ~: 500 1"' 30 LOS: 600 2 20 100 ill' 10 Date Tax Opened: 10 / 15 / 2 0 0 7 Term: 7 MONTH ID: 19 6 - 3 8 - 618 4 Number: Certificate of Deposit Amount of $ Deposit: TEN THOUSAND AND 0 0/ 10 0 10.0 0 0. 0 0 This Time Deposit is Issued to: Issuer: SPENCER A STAMY MARY F STAMY 525 GREEN SPRING ROAD NEWVILLE PA 17241 Not Negotiable -Not Transferable -Additional terms are below. ~c9 ~ ~ ~/ ~ o ~S` ~"tQ 1 Jrt ~ J ~~ C t~ FARMERS NATIONAL BANK • OF NEWVILLE - A DIVISION OF ADAMS COUNTY NATIONAL BANK NEWVILLE PA 17241 By DOUG R LI SA Additional Terms and Disclosures This form contains the terms for your time deposit. It is also the Minimum Balance Requirement: You must make a minimum deposit to Truth-in-Savings disclosure for those depositors entrtled to one. There are additional terms and disclosures on page two of this form, some of open this account of $ 5 0 0 . 0 0 which explain or expand on those below. You should keep one copy of ~ You must maintain this minitnum balance on a daily basis to earn the this form. annual percentage yield disclosed. Maturity Date: This account matures 0 5 / 15 / 2 0 0 8 (See below for renewal information.) Withdrawals of Interest: Interest ^ accrued ~ credited during a Rate Information: The interest rate for this account is 4 . 7 5 0 % term can be withdrawn: AT MATURITY . with an annual percentage yield of 4.85 %. This rate will be paid until the maturity date specified above. Interest begins to accrue on Early Withdrawal Penalty: If we consent to a request for a withdrawal the business day you deposit any noncash item (for example, a check). that is otherwise not permitted you may have to pay a penalty. The Interest will be compounded MONTHLY penalty will be an amount equal to: Interest will be credited EVERY 7 MONTH (S) THREE (3) MONTHS OF INTEREST BY ADDING BACK TO THE ACCOUNT interest on the amount withdrawn. The annual percentage yield assumes that interest remains on deposit Renewal Policy: until maturity. A withdrawal of interest will reduce earnings. ^ Single Maturity: If checked, this account will not automatically ^ If you close your account before interest is credited, you will not renew. Interest ^ will ^ will not accrue after maturity. receive the accrued interest. ~ Automatic Renewal: If checked, this account will automatically The NUMBER OF ENDORSEMENTS needed for withdrawal or any renew on the maturity date. (see page two for terms) other purpose is: 1 Interest ^ will ~ will not accrue after fmal maturity. ACCOUNT OWNERSHIP: You have requested and intend the type of account marked below. ^ Individual ;and not as tenants ~CJOint Account -With Survivorship ncommon> ^ Joint Account - No Survivorship cas una~~ in enmmon~ ^ Trust: Separate Agreement Dated ^ Revocable Trust Designation as defined in this agreement (Beneficiaries' names and addresses) FORM 2 BACKUP WITHHOLDING CERTIFICATIONS TIN: 196-38-6184 Taxpayer I.D. Number -The Taxpayer Identification Number shown above (TIN) is my correct taxpayer identification number. ~C Backup Withholding - I am not subject to backup withholding either because I have not been notified that I am subject to backup withholding as a result of a failure to report all interest or dividends, or the Internal Revenue Service has notified me that I am no longer subject to backup withholding. Account Number: 17 6 5 3 8 ^ Exempt Recipients - I am an exempt recipient under the Internal Revenue Service Regulations. A provision for my signature, certifying under penalty of perjury the statements checked in this section and that I am a U.S. person (including a U.S. resident alien), is contained on the first copy of this certificate. ENDORSEMENTS -SIGN ONLY WHEN YOU REQUEST WITHDRAWAL X X X Ej~,~ p 1993 Bankers Systems, Inc., St Cloud, MN Form CD-AA-NPD (11 1/3/2001 READ PAGE TWO FOR ADDITIONAL TERMS /page f o{2) DEFINITIONS: "We," "our," and "us" mean the issuer of this account and "you" and "your" mean the depositor(s). "Account" means the original certificate of deposit as well as the deposit it evidences. TRANSFER: "Transfer" means any change in ownership, withdrawal rights, or survivorship rights, including (but not limited to) any pledge or assignment of this account as collateral. You cannot transfer this account without our written consent. PRIMARY AGREEMENT: You agree to keep your funds with us in this account until the maturity date. (An automatically renewable account matures at regular intervals.) You may not transfer this account without first obtaining our written consent. You must present this certificate when you request a withdrawal or a transfer. This account is void if the deposit is made by any method requiring collection (such as a check) and the deposit is not immediately collected in full. If the deposit is made or payable in a foreign currency, the amount of the deposit will be adjusted to reflect final exchange into U.S. dollars. We may change any term of this agreement. Rules governing changes in interest rates have been provided. For other changes we will give you reasonable notice in writing or by any other method permitted by law. If any notice is necessary, you all agree that the notice will be sufficient if we mail it to the address listed on page one of this form. You must notify us of any change. WITHDRAWALS AND TRANSFERS: Only those of you who sign the permanent signature card may withdraw funds from this account. (In appropriate cases, a court appointed representative, abeneficiary of a trust account whose right of withdrawal has matured, or a newly appointed and authorized representative of a legal entity may also withdraw from this account.) The specific number of you who must agree to any withdrawal is written on page one in the section bearing the title " ...Number of Endorsements .... "This means, for example, that if two of you sign the signature card but only one endorsement is necessary for withdrawal then either of you may request withdrawal of the entire account at any time. These same rules apply to define the names and the number of you who can request our consent to a transfer. PLEDGES: Any pledge of this account (to which we have agreed), must first be satisfied before the rights of any joint account survivor beneficiary or trust account beneficiary become effective. For example, if one joint tenant pledges the account for payment of a debt and then dies, the surviving joint tenant's rights in this account are subject fast to the payment of the debt. OWNERSHIP OF ACCOUNT AND BENEFICIARY DESIGNATION: You intend these rules to apply to this account depending on the form of ownership and beneficiary designation, if any, specified on page 1. We make no representations as to the appropriateness or effect of the ownership and beneficiary designations, except as they determine to whom we pay the account funds. Individual Account -Such an account is owned by one person. Joint Account With Survivorship (And Not As Tenants In Common) -Such an account is owned by two or more persons. Each of you intend that upon your death the balance in the account (subject to any previous pledge to which we have consented) will belong to the survivor(s). If two or more of you survive, you will own the balance in the account ownership as joint tenants with survivorship and not as tenants in common. Joint Account - No Survivorship (As Tenants In Common) -Such an account is owned by two or more persons but none of you intend (merely by opening this account) to create any right of survivorship in any other person. We encourage you to agree and tell us in writing of the percentage of the deposit contributed by each of you. This information will not, however, affect the "number of endorsements" necessary for withdrawal. Revocable Trust Account (subject to this agreement) - If two or more of you create such an account, you own the account jointly with survivorship. Beneficiaries cannot withdraw unless: (1) all persons creating the account die, and (2) the beneficiary is then living. If two or more beneficiaries are named and survive the death of all persons creating the account, such beneficiaries will own this account in equal shares, without right of survivorship. Any such beneficiary may withdraw all or any part of the account balance. The person(s) creating this account type reserves the right to: (1) change beneficiaries; (2) change account types; and (3) withdraw all or part of the deposit at any time. Trust Account Subject to Separate Agreement - We will abide by the terms of any separate agreement which clearly pertains to this account and which you file with us. Any additional consistent terms stated on this form will also apply. SET-OFF: You each agree that we may (without prior notice and when permitted by law) set off the funds in this account against any due and payable debt owed to us now or in the future, by any of you having the right of withdrawal, to the extent of such person's or legal entity's right to withdraw. If the debt arises from a note, "any due and payable debt" includes the total amount of which we are entitled to demand payment under the terms of the note at the time we set off, including any balance the due date for which we properly accelerate under the no±P. This right of set-off does not apply to this account if: (a) it is an Individual Retirement Account or other tax-deferred retirement account, or (b) the debt is created by a consumer credit transaction under a credit card plan, or (c) the debtor's right of withdrawal arises only in a representative capacity. You agree to hold us harmless from any claim arising as a result of our exercise of our right of set-off. BALANCE COMPUTATION METHOD: We use the daily balance method to calculate the interest on this account. This method applies a daily periodic rate to the principal in the account each day. TRANSACTION LIMITATIONS: You cannot make additional deposits to this account during a term (other than credited interest). You cannot withdraw principal from this account without our consent except on or after maturity. (For accounts that automatically renew, there is a ten day grace period after each renewal date during which withdrawals are permitted without penalty.) In certain circumstances such as the death or incompetence of an owner of this account, law permits, or in some cases requires, the waiver of the early withdrawal penalty specified on page one. FOR ACCOUNTS THAT AUTOMATICALLY RENEW: Each renewal term will be the same as this original one, beginning on the maturity date (unless we notify you, in writing, before a maturity date, of a different term for renewal). You must notify us in writing before, or within a ten day grace period after, the maturity date if you do not want this account to automatically renew. Interest earned during one term that is not withdrawn during or immediately after that term is added to principal for the renewal term. The rate for each renewal term will be determined by us on or just before the renewal date. You may call us on or shortly before the maturity date and we can tell you what the interest rate will be for the next renewal term. On accounts with terms of longer than one month we will remind you in advance of the renewal and tell you when the rate will be known for the renewal period. See your plan disclosure if this account is part of an IRA. (page 2 of 2/ ~~ 0 1993 Bankers Systems, Inc., St. Cloud, MN Form CD-AA-NPD 1 /3/2001 FARMERS NATIONAL BANK OF NEWVILLE - A DIVISION OF DLO ADAMS COUNTY NATIONAL BANK NEWVILLE PA 17241 TRUTH IN SAVINGS DISCLOSURE FOR T/ME ACCOUNTS Terms following a ^ apply only if checked. ° Acct: 7 MONTH SPECIAL CD Acct #: 176538 Date: OCTOBER 15 2007 The interest rate and annual percentage yield stated below are accurate as of the date printed above. If you would like more current rate and yield information please call us at 888-334-2262 This disclosure contains the rules which govern your deposit account. Unless it would be inconsistent to do so, words and phrases used in this disclosure should be construed so that the singular includes the plural and the plural includes the singular. FIXED RATE: The interest rate for your account is 4 .750 % with an annual percentage yield of 4.85 %. We will pay this rate UNTIL 05/15/2008 ^ The interest rate and annual percentage yield for your account depend upon the applicable rate tier. We will pay these rates ^ VARIABLE RATE: ^ The interest rate for your account is with an annual percentage yield of %. Your interest rate and annual percentage yield may change. ^ The interest rate and annual percentage yield for your account depend upon the applicable rate tier. The interest rate and annual percentage yield for these tiers may change. Determination of Rate: ^ At our discretion, wE: may change the interest rate on your account. ^ The interest rate for your account ^ The fixed initial rate is not determined by this rule. ^ The initial interest rate on your account Subsequent rates Frequency of Rate Change: ^ We may change the interest rate on your account ~YOUr initial interest rate will not change UNTIL 05/15/2008 We may change the interest rate on your account at that time and thereafter. Limitations on Rate Changes: ^ The interest rate for your account will not FORM ii by more than each ~® ©1992 Bankers Systems, Inc., St. Cloud, MN Form TSD-TIME 6/17/2005 ^ The interest rate will not be less than /o or more than %. ^ The interest rate will not the interest rate initially disclosed to you. COMPOUNDING AND CREDITING: Frequency -Interest- WILL be compounded MONTHLY Interest will be CREDITED TO PRINCIPAL BALANCE Withdrawa/ of Jntere~st Before Maturity. The annual percentage yield assumes 1:hat interest remains on deposit until maturity. A withdrawal of interest will reduce earnings. ^ Requited Interest Distribution. This account requires the distribution of interest and does not allow interest to remain in the account. ®~ffect on Closing an ,4ccount. If you close your account before interest is credited, you WILL receive the accrued interest. MINIMUM BALANCE REQUIREMENTS: To Open the Account. `(ou must deposit at least S 500.00 to open this account. To Obtain the Annua/Percentage Yie/d Disc/osed. You must maintain £I minimum balance of S 500.00_ in the account each day to obtain the disclosed annual percentage yield. ^ You must maintain ~r minimum average daily balance of $ to obtain the disclosed annual percentage yield. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. The period we use is_ BALANCE COMPUTATION METHOD: Dai/y Balance Method. We use the daily balance method to calculate the interest or. ~/our account. This method applies a daily periodic rate to the principal in the account each day. ^ Average Daily Balance Method. We use the average daily balance method to calculate interest on your account. This method applies a periodic rate to the average daily balance in the account for the period. TFIe average daily balance Is calculated by adding the principal in the account for each day of the period and dividing that figure by 'the number of days in the period. The period we use is ACCRUAL OF INTEREST ON NONCASH DEPOSITS: ^ Interest be ins to accrue no later than the business day we receive credit for the deF~osit of noncash items (for example, checks). Interest begins to accrue ON THE SAME DAY you deposit noncash items Ifor example, checks. MATURITY DATE: Your account will mature on 05/15/2008 ^ Your account will mature in ^ We may accelerate the maturity or call this account, at our option, (page J of 2/ ^ Your account has no definite maturity date. To withdraw any or part of this deposit without penalty, we must receive at least written notice from you of your intention to make a withdrawal. The notice must specify the exact amount and date of the intended withdrawal. Interest will no longer accrue after the withdrawal date specified in your notice on the amount specified in your notice. We may terminate this account by mailing a notice to you of our intention to terminate at least ten days before the termination date. The date of intended withdrawal of the last funds in the account, or the termination date, is considered to be the maturity date. TIME DEPOSIT WITHDRAWAL LIMITATIONS: ~Principa/.• YOU CANNOT WITHDRAWAL PRINCIPAL FROM THIS ACCOUNT, WITHOUT OUR CONSENT, EXCEPT ON THE MATURITY DATE. OR DURING THE TEN (10) DAY GRACE PERIOD FOLLOWING THE MATURITY DATE. ^ /nterest: /nterest Timing: You can withdraw interest AT MATURITY. EARLY WITHDRAWAL PENALTY: A penalty may ^ will be imposed for withdrawals before maturity. The penalty will be an amount equal to: ^ Seven days' interest on the amount withdrawn if the withdrawal is made within the first six days after the deposit. ^ 180 days' interest on the amount withdrawn ^ 90 days' interest on the amount withdrawn ^ 30 days' interest on the amount withdrawn THREE (3) MONTHS OF INTEREST IX.K The interest rate we will use to calculate the interest forfeiture will be: THE CURRENT RATE OF THE CERTIFICATE OF DEPOSIT. We will charge the penalty first against any interest then in the account, and any excess will be deducted from the amount you withdraw. ~If you withdraw some of your funds before maturity, the interest rate for the remaining funds in your account will be 4.750 % with an annual percentage yield of 4.85 %. Minimum Balance Accounts. We reserve the right to, treat any withdrawal which would reduce the balance remaining in the account below the required minimum initial deposit or minimum balance as a withdrawal of the entire account balance and calculate the amount of the penalty accordingly. In certain circumstances, such as the death or incompetence of an account owner, the law permits, or in some cases requires, the waiver of the early withdrawal penalty. Other exceptions may also apply, for example, if this is part of an IRA or other tax-deferred savings plan. ADDITIONS TO ACCOUNT: ^ You may make no more than deposits into your account each X® You may only make deposits into your account ON THE MATURITY DATE AND DURING THE TEN (10) DAY GRACE PERIOD FOLLOWING THE MATURITY DATE. ~® ©1992 Bankers Systems, Inc., St. Cioud, MN Form TSD-TIME 6/17(2005 ^ You may make unlimited deposits into your account. ^ You may not make any deposits into your account until maturity. ^ The minimum amount you can deposit is S ^ The maximum amount you can deposit is S YOU CANNOT MAKE ADDITIONAL DEPOSITS TO THIS ACCOUNT DURING A TERM (OTHER THAN CREDITED INTEREST). RENEWAL POLICY: ^ Sing/e Maturity: This account will not renew automatically at maturity. If you do not renew the account, Automatic Renewa/.• This account will automatically renew at maturity. YOU will have TEN (10) CALENDAR days after the maturity date to withdraw funds without penalty. Exceptions to Automatic Renewa/.• This account will not renew if you withdraw the funds on the maturity date or if we receive written notice from you on or before the maturity date of your intention not to renew. ^ There is no grace period following the maturity of this account to withdraw funds without penalty. RENEWAL TERMS: ^ Same Term As Origins/: Each renewal term will be the same as the original term, beginning on the maturity date. Different Term: Each renewal term will be TWELVE MONTHS ,beginning on the maturity date. RENEWAL INTEREST CALCULATION: ®XSame /nterest Ca/culation: Interest will be calculated on the same basis as during the original term. ^ Different /nterest Ca/cu/ation: The interest rate will BONUSES: ^ You will as a bonus ^ You must maintain a minimum to obtain the bonus. ^ To earn the bonus, of S PRE-MATURITY NOTICE: Your account will mature on 05/15/2008 . If the account renews, the new maturity date will be TWELVE MONTHS ^ The interest rate for the renewed account will be with an annual percentage yield of The interest rate and annual percentage yield have not yet been determined. They will be available on 05/15/2008 Please call 888-334-2262 to learn the interest rate and annual percentage yield for your new account. ^ ADDITIONAL TERMS: FORM 211 (page 2 of 2) 7 MONTH SPECIAL CD ' OCTOBER 15 ,2007 176538 ADDITIONAL TRUTH IN SAVINGS DISCLOSURES ***7 MONTH SPECIAL CD*** THE 7 MONTH SPECIAL CD IS AVAILABLE AT ALL OF THE BANK'S RETAIL BANKING LOCATIONS FOR A LIMITED TIME. A MINIMUM DEPOSIT OF $500 IS REQUIRED TO OPEN THE ACCOi7NT, AS WELL AS TO EARN THE ANNUAL PERCENTAGE YIELD. THERE IS A MAXIMUM DEPOSIT AMOUNT OF $250,000 PER DEPOSITOR FOR REGULAR CD'S. THERE WILL BE NO JUMBO RATE GIVEN ON BALANCES OF $100,000 OR MORE DOES NOT QUALIFY FOR THE CD BONUS RATE IN EFFECT FOR RELATIONSHIP CHECKING ACCOUNTHOLDERS. THE 7 MONTH SPECIAL CD WILL AUTOMATICALLY REINVEST AT MATURITY INTO A 12 MONTH CD. THE INTEREST RATE AND ANNUAL PERCENTAGE YIELD WILL BE DETERMINED AT THE TIME OF REINVESTMENT. YOU CAN CALL THE BANK TOLL-FREE AT 888-334-ACNB(2262) TO OBTAIN CURRENT INFORMATION. AFTER MATURITY, INTEREST ON THE REINVESTED ACCOUNT WILL BE PAID ANNUALLY AND ADDED TO THE BALANCE IN THE ACCOUNT. SHOULD YOU WISH TO CHANGE THIS METHOD OF PAYMENT, PLEASE CONTACT THE BANK TOLL- FREE AT 888-334-ACNB(2262). FORM 311 ADAMS COUNTY NATIONAL BANK 1-14-2008 FARMERS NATIONAI, BANK OF NEWVILLE AnrvrsroNOFnnaars couvTrNATrowac aarvx CERTIFICATE OF DEPOSIT REINVESTMEN~C NOTICE DEAR CUSTOMER: T]~ANK YOU FOR RENEWING YOUR CERTIFICE~TE OF DEPOSIT. WE HAVE REINVESTED YcJUR FUNDS ACCORDING TO YOUR INSTRUC~CIONS OUTLINED BELOW. PLEASE CALL (888) 334-2262 EXT-NONE IF YOU HEAVE ANY QUESTIONS REGARDING YOUR ACCOUNT. *--~-DETAIL INFORMATION----* CER'PIFICATE: 172507 MARY F STAMY REII~TVESTMENT DATE: 1/12/08 OR SPENCER A STAMY NEW MATURITY DATE: 5/12/08 525 GREEN SPRING RD INV]~STMENT TERM: 4 MONTHS NEWVILLE PA 1'7241 BALI~NCE: 10,557.35 ADAMS COUNTY NA'T'IONAL BANK 1-11- 2 0 0 8 FARMERS NATIONAL BANK OF NEWVILLE Anrvrsrorv oFnn.~rrs couNrrNaTroN.as snrvx CERTIFICATE OF DEPOSIT REINVESTMEN'T' NOTICE DEAR CUSTOMER: THANK YOU FOR RENEWING YOUR CERTIFICATE OF DEPOSIT. WE HAVE REINVESTED YOUR FUNDS ACCORDING TO YOUR INSTRUC'T'IONS OUTLINED BELOW. PLEASE CALL (888) 334-2262 EXT-NONE IF YOU HAVE ANY QUESTIONS REGARDING YOUR ACCOUNT. *---DETAIL INFORMATION----* CER'T'IFICATE: 172507 MARY F STAMY REI:[~IVESTMENT DATE: 1/12/08 OR SPENCER A STAMY NEW MATURITY DATE: 1/12/09 525 GREEN SPRING RD INVESTMENT TERM: 12 MONTHS NEWVILLE PA 17241 BALANCE: 10,557.35 TM0365P1 ADAMS COUNTY NATIONAL BANK 12-28-2007 FARMERS NATIONAL BANK OF NEWVILLE a nrvrsrorv oF.aD.4n~rs couNryrvaTronaz, sarvx CERTIFICATE OF DEPOSIT PRE-RENEWAL NOTICE REG DD 213 DEAR CUSTOMER: YOUR ACCOUNT WILL AUTOMATICALLY RENEW 10 DAY(S) AFTER THE STATED RENEWAL DATE. THE INTEREST RATE AND THE ANNUAL PERCENTAGE YIELD HAVE NOT YET BEEN DETERMINED. CALL 888-334-2262 EXT-NONE ON THE FIRST 13USINESS DAY ON OR AFTER THE CURRENT RENEWAL DATE LISTED BELOW FOR CURF:ENT RENEWAL INFORMATION. IF YOU WISH TO REDEEM THIS ACCOUNT, PLEASE DO SO WITHIN THE 10 DAY GRACE PERIOD. * - - - DETAIL INFORMATION - - - - - - CERTIFICATE 172507 MARY F STAMY CURRENT RENEWAL 1 / 12 / 0 8 OR SPENCER A STAMY ISSUE v.ALUE 10 , o 0 0 . 0 0 525 GREEN SPRING ROAD RENEWAL BALANCE 10, 557.35 NEWVILLE PA 17241 CURRENT RATE 5.010 NEXT RE]VEWAL 1/12/09 INTEREST WILL BE ADDED TO YOUR CERTIFICATE RAr,ANrF TM360P8 :. u~ O O r w 0 r O ~ ^ O O RJ ti O r O O r r O .®.~...~- __ _ cis ~~ .. -HOGj rssa-zr~r 'tUAP I 5u2.1 ~I c m p ~ ~ m 3 O ~ ~ n n o ~ ~ ~ m N ~ ~ ~ v ~ cn coo ~ m -_ m w > ? ~' ~ .-~ ~ rm ~ W m ~ ~~, Z1 - -~ ~ ^ ~ ' a w s F ~ `~ ~ m ~ ~} ~ ~ ~ z v . ~~ a o o O ~ o ci ~ { N ~ `, - ~ ^ C~ ~ ! -~ ~ 7 m T c '- - ~~ A a ~ ~` c~ Z ~~ C: ~ ~ _ ~ ~ ~ `< V ^ ~ ~ ~ ~ o ~ v ~ ~ ~ ~' ~° 1 ~ UT ~ 7 C ~ D p W ~ 3 ~ z O ~ ^ ~ 3 D m n C 3 ~ m n D 0 ~ m c •G C~ N ~ ~ ~~ ~ N C17 tNn `~ ~ ~ ~ ~ r~z~ d ~n yxy~ ~O ~y Nz~~ N~-rJ °zz ~C'1~C ~ ~O CI ~ y H O b7 H ~Z-] N Ul xl [~7 xi O C~' LTJ o ~ ~-3 0 C" o ~ d • C H CrJ O LTJ b7 a ,~ ~ C H U1 ~ y ~ °z N Z O ~ ~b y ~ z ~Z3 ~ O ~ 71 ~. txn d ly-I o (7 ~ ~ ~ ~ ~ ~ a H `~ ~ m H I-C ~ ~] H ~ ~ Z ~t~r1 '.~~~~~~ i tnH y O H 'Z H (~ LTJ LTJ H C] ~ O ~ ~yC y '~ ~ y y~~ d °~ r b H t7~ ~~~~-]tom-I~H~~ ~ ~ O H CyrJ LTJ I-3 H O H '"~ trJ ~ ~ d ~ C ~ [rJ I H ~ ~ O ~ ~ C t7 .-. I~ N H y N H o o O I-' N ~ I-y LTJ ~ I I IJ1 U1 O N F-' F' I~ H O i O N N IV N O i 0 i i i O O ill O 6l O I 00 J iJl O 61 O I K- FARMERS NATIONAL BANK ' OF NEWVILLE - A DIVISION OF DLO ADAMS COUNTY NATIONAL BANK NEWVILLE PA 17241 TRUTH IN SAVINGS DISCLOSURE FOR T/ME ACCOUNTS Terms following a ^ apply only if checked. Acct: 4 MONTH SPECIAL CD Acct #: Date: JANUARY 14 2008 The interest rate and annual percentage yield stated below are accurate as of the date printed above. If you would like more current rate and yield information please call us at 888-334-2262 This disclosure contains the rules which govern your deposit account. Unless it would be inconsistent to do so, words and phrases used in this disclosure should be construed so that the singular includes the plural and the plural includes the singular. FIXED RATE: ~CThe interest rate for your account is 4 .460 % with an annual percentage yield of 4.55 %. We will pay this rate UNTIL 05/14/2008 ^ The interest rate and annual percentage yield for your account depend upon the applicable rate tier. We will pay these rates ^ The interest rate will not be less than _ or more than %. ^ The interest rate will not the interest rate initially lisclosed to you. COMPOUNDING AND CREDITING: Frequency -Interest- WILL be compounded MONTHLY Interest will be CREDITED TO PRINCIPAL BALANCE ^ VARIABLE RATE: ^ The interest rate for your account is with an annual percentage yield of %. Your interest rate and annual percentage yield may change. ^ The interest rate and annual percentage yield for your account depend upon the applicable rate tier. The interest rate and annual percentage yield for these tiers may change. Determination of Rate: ^ At our discretion, we may change the interest rate on your account. ^ The interest rate for your account ^ The fixed initial rate is not determined by this rule. ^ The initial interest rate on your account Subsequent rates Frequency of Rate Change: ^ We may change the interest rate on your account Your initial interest rate will not change UNTIL 05/14/2008 We may change the interest rate on your account at that time and thereafter. Limitations on Rate Changes: ^ The interest rate for your account will not FORM ii by more than each ® ©t 992 Bankers Systems, Inc., St. Cloud, MN Form TSD-TIME 6/17/2005 Withdrawa/ of lntere~st Before Maturity. The annual percentage yield assumes 1:hat interest remains on deposit until maturity. A withdrawal of interest will reduce earnings. ^ Required /nterest Distribution. This account requires the distribution of interest and does not allow interest to remain in the account. ~~ffect on Closing an .Account. If you close your account before interest is credited, you WILL receive the accrued interest. MINIMUM BALANCE REQUIIREMENTS: To Open the Accou»t. 1'ou must deposit at least S 500.00 tD open this account. To Obtain the Annua/ P~srcentage Yie/d Disc%sed. You must maintain a minimum balance of S 500.00 _ in the account each day to obtain the disclosed annual percentage yield. ^ You must maintain a minimum average daily balance of $ to obtain the disclosed annual percentage yield. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. The period we use is_ BALANCE COMPUTATION 'METHOD: Dai/y Balance Method. We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. ^ Average Dai/y Balance Method. We use the average daily balance method to calculate interest on your account. This method applies a periodic r<rte to the average daily balance in the account for the period. This average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. The period we use is ACCRUAL OF INTEREST ON NONCASH DEPOSITS: ^ Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks. Interest begins to accrue ON THE SAME DAY you deposit noncash items (for example, checks). MATURITY DATE: ^ Your account will mature on Your account will matwre in 4 MONTHS ^ We may accelerate the maturity or call this account, at our option, /page 1 of 21 ^ Your account has no definite maturity date. To withdraw any or part of this deposit without penalty, we must receive at least written notice from you of your intention to make a withdrawal. The notice must specify the exact amount and date of the intended withdrawal. Interest will no longer accrue after the withdrawal date specified in your notice on the amount specified in your notice. We may terminate this account by mailing a notice to you of our intention to terminate at least ten days before the termination date. The date of intended withdrawal of the last funds in the account, or the termination date, is considered to be the maturity date. TIME DEPOSIT WITHDRAWAL LIMITATIONS: ~Principa/.• YOU CANNOT WITHDRAWAL PRINCIPAL FROM THIS ACCOUNT. WITHOUT OUR CONSENT EXCEPT ON THE MATURITY DATE. OR DURING THE TEN (10) DAY GRACE PERIOD FOLLOWING THE MATURITY DATE. ^ !nterest: X~/nterest Timing: You can withdraw interest AT MATURITY EARLY WITHDRAWAL PENALTY: A penalty may ^ will be imposed for withdrawals before maturity. The penalty will be an amount equal to: ^ Seven days' interest on the amount withdrawn if the withdrawal is made within the first six days after the deposit. ^ 180 days' interest on the amount withdrawn ^ 90 days' interest on the amount withdrawn ^ 30 days' interest on the amount withdrawn IX~ THREE (3) MONTHS OF INTEREST The interest rate we will use to calculate the interest forfeiture will be: THE CURRENT RATE OF THE CERTIFICATE OF DEPOSIT. We will charge the penalty first against anv interest then in the account, and any excess will be deducted from the amount you withdraw. If you withdraw some of your funds before maturity, the interest rate for the remaining funds in your account will be 4 .460 % with an annual percentage yield of 4.55 %. ®{Minimum Balance Accounts. We reserve the right to. treat any withdrawal which would reduce the balance remaining in the account below the required minimum initial deposit or minimum balance as a withdrawal of the entire account balance and calculate the amount of the penalty accordingly. In certain circumstances, such as the death or incompetence of an account owner, the law permits, or in some cases requires, the waiver of the early withdrawal penalty. Other exceptions may also apply, for example, If this Is part of an IRA or other tax-deferred savings plan. ADDITIONS TO ACCOUNT: ^ You may make no more than deposits into your account each ~X You may only make deposits into your account ON THE MATURITY DATE AND DURING THE TEN (10) DAY GRACE PERIOD FOLLOWING THE MATURITY DATE ~~ ©1992 Bankers Systems, Inc., St. Cloud, MN Form TSD-TIME 6/17/2005 ^ You may make unlimited deposits into your account. ^ You may not make any deposits into your account until maturity. ^ The minimum amount you can deposit is S ^ The maximum amount you can deposit is S YOU CANNOT MAKE ADDITIONAL DEPOSITS TO THIS ACCOUNT DURING A TERM (OTHER THAN CREDITED INTEREST) RENEWAL POLICY: ^ Sing/e Maturity.• This account will not renew automatically at maturity. If you do not renew the account, Automatic Renewa/: This account will automatically renew at maturity. YOU will have TEN (10) CALENDAR days after tha -a~,;rity ~ai~ tG w ~hdrav: funds •..ithout pc^a'ty. Exceptions to Automatic Renewa/: This account will not renew if you withdraw the funds on the maturity date or if we receive written notice from you on or before the maturity date of your intention not to renew. ^ There is no grace period following the maturity of this account to withdraw funds without penalty. RENEWAL TERMS: ^ Same Term As Origins/: Each renewal term will be the same as the original term, beginning on the maturity date. Different Term: Each renewal term will be SIX MONTHS ,beginning on the maturity date. RENEWAL INTEREST CALCULATION: ®XSame /nterest Calcu/ation: Interest will be calculated on the same basis as during the original term. ^ Different /nterest Ca/cu/anon: The interest rate will BONUSES: ^ You will as a bonus ^ You must maintain a minimum of S to obtain the bonus. ^ To earn the bonus, ^ PRE-MATURITY NOTICE: Your account will mature on . If the account renews, the new maturity date will be SIX MONTHS ^ The interest rate for the renewed account will be with an annual percentage yield of ^ The interest rate and annual percentage yield have not yet been determined. They will be available on Please call to learn the interest rate and annual percentage yield for your new account. ^ ADDITIONAL TERMS: FORM 211 (page 2 of 2) Date Tax Opened: 12 / 12 / 2 0 0 6 Term: 13 MONTH ID: 16 6 - O 1- 3 7 3 9 _ Number: Certificate of Deposit Account Number: 1'72507 Amount of Deposit: TEN THOUSAND AND 0 0 / 10 0 $ 10.0 0 0 . 0 0 This Time Deposit is Issued to: Issuer: '••MARY F STAMP SPENCER A STAMP 525 GREEN SPRING ROAD NEWVILLE PA 17241 Not Negotiable -Not Transferable -Additional terms are below. Additional Terms and Disclosures This form contains the terms for your time deposit. It is also the Minimum Balance Requirernent: You must make a minnnum deposit to Truth-in-Savings disclosure for those depositors entitled to one. There are additional terms and disclosures on pa a two of this form, some of open this account of $ 5. 0 0 0 . 0 0 which explain or expand on those below. You should keep one copy of ~ You must maintain this minimum balance on a daily basis to earn the this form. annual percentage yield disclosed. Maturity Date: This account matures O 1 / 12 / 2 0 0 8 (See below for renewal information.) Withdrawals of Interest: Interest ^ accrued ~ credited during a Rate Information: The interest rate for this account is 5.010 % term can be withdrawn: AT :MATURITY . with an annual percentage yield of _ 5.13 %. This rate will be paid until the maturity date specified above. Interest begins to accrue on the business day you deposit any noncash item (for example, a check). Interest will be compounded MONTHLY Interest will be credited EVERY 12 MONTH (S ) BY ADDING BACK TO THE ACCOUNT The annual percentage yield assumes that interest remains on deposit until maturity. A withdrawal of interest will reduce earnings. ^ If you close your account before interest is credited, you will not receive the accrued interest. FARMERS NATIONAL BANK • OF NEir~TILLE - A DIVISION OF ADAMS COUNTY NATIONAL BANK NEWVILI~E PA 17241 BRENDA SHUGHART Early Withdrawal Penalty: If we consent to a request for a withdrawal that is otherwise not permitted you may have to pay a penalty. The penalty will be an amount equal to: SIX (6) MONTHS OF INTEREST interest on the amount withdrawn. Renewal Policy: ^ Single Maturity: If ckiecked, this account will not automatically renew. Interest ^ will ^ will not accrue after maturity. ~ Automatic Renewal: l:f checked, this account will automatically The NUMBER OF ENDORSEMENTS needed for withdrawal or any renew on the maturity date. (see page two for terms) other purpose is: 1 Interest ^ will ~ will not accrue after final maturity. ACCOUNT OWNERSHIP: You have requested and intend the type of account marked below. ^ Individual (and not as terents ~JOint Account -With Survivorship in common) ^ Joint Account - NO SllrvlVOrship (as tenants in wmmon) ^ Trust: Separate Agreement Dated ^ Revocable Trust Designation as defined in this agreement (Beneficiaries' names and addresses) FORM 2 BACKUP WITHI30LDING CERTIFICATIONS TIN: 166-O1-373.9 ~ Taxpayer I.D. Number -The Taxpayer Identification Number shown above (TIN) is my correct taxpayer identification number. X~ Backup Withholding - I am not subject to backup withholding either because I have not been notified that I am subject to backup withholding as a result of a failure to report all interest or dividends, or the Internal Revenue Service has notified me that I am no longer subject to backup withholding. ^ Exempt Recipients - I am an exempt recipient under the Internal Revenue Service F;egulations. ~- provision for my signature, certifying under penalty of perjury the statements checked in this section and that I am a U.S. F~erson (including a U.S. resident alien), is contained on the first copy of this certificate. ENDORSEMENTS -SIGN ONLY WHEN YOU REQUEST WITHDRAWAL X X X _ .-..~ ®1993 Bankers Systems, Inc., St. Cloud, MN Form CD-AA-NPD (1) 1 /3!2001 READ PAGE TWO FOR ADDITIONAL TERMS (page 1 of 21 DEFINITIONS: "We," "our," and "us" mean the issuer of this account and "you" and "your" mean the depositor(s). "Account" means the original certificate of deposit as well as the deposit it evidences. TRANSFER: "Transfer" means any change in ownership, withdrawal rights, or survivorship rights, including (but not limited to) any pledge or assignment of this account as collateral. You cannot transfer this account without our written consent. PRIMARY AGREEMENT: You agree to keep your funds with us in this account until the maturity date. (An automatically renewable account matures at regular intervals.) You may not transfer this account without first obtaining our written consent. You must present this certificate when you request a withdrawal or a transfer. This account is void if the deposit is made by any method requiring collection (such as a check) and the deposit is not immediately collected in full. If the deposit is made or payable in a foreign currency, the amount of the deposit will be adjusted to reflect final exchange into U.S. dollars. We may change any term of this agreement. Rules governing changes in interest rates have been provided. For other changes we will give you reasonable notice in writing or by any other method permitted by law. If any notice is necessary, you all agree that the notice will be sufficient if we mail it to the address listed on page one of this form. You must notify us of any change. WITHDRAWALS AND TRANSFERS: Only those of you who sign the permanent signature card may withdraw funds from this account. (In appropriate cases, a court appointed representative, abeneficiary of a trust account whose right of withdrawal has matured, or a newly appointed and authorized representative of a legal entity may also withdraw from this account.) The specific number of you who must agree to any withdrawal is written on page one in the section bearing the title " ...Number of Endorsements .... "This means, for example, that if two of you sign the signature card but only one endorsement is necessary for withdrawal then either of you may request withdrawal of the entire account at any time. These same rules apply to define the names and the number of you who can request our consent to a transfer. PLEDGES: Any pledge of this account (to which we have agreed), must first be satisfied before the rights of any joint account survivor beneficiary or trust account beneficiary become effective. For example, if one joint tenant pledges the account for payment of a debt and then dies, the surviving joint tenant's rights in this account are subject first to the payment of the debt. OWNERSHIP OF ACCOUNT AND BENEFICIARY DESIGNATION: You intend these rules to apply to this account depending on the form of ownership and beneficiary designation, if any, specified on page 1. We make no representations as to the appropriateness or effect of the ownership and beneficiary designations, except as they determine to whom we pay the account funds. Individual Account -Such an account is owned by one person. Joint Account With Survivorship (And Not As Tenants In Common) -Such an account is owned by two or more persons. Each of you intend that upon your death the balance in the account (subject to any previous pledge to which we have consented) will belong to the survivor(s). If two or more of you survive, you will own the balance in the account ownership as joint tenants with survivorship and not as tenants in common. Joint Account - No Survivorship (As Tenants In Common) -Such an account is owned by two or more persons but none of you intend (merely by opening this account) to create any right of survivorship in any other person. We encourage you to agree and tell us in writing of the percentage of the deposit contributed by each of you. This information will not, however, affect the "number of endorsements" necessary for withdrawal. Revocable Trust Account (subject to this agreement) - If two or more of you create such an account, you own the account jointly with survivorship. Beneficiaries cannot withdraw unless: (1) all persons creating the account die, and (2) the beneficiary is then living. If tw.~ or more beneficiaries are named and survive the death of all persons creating the account, such beneficiaries will own this account in equal shares, without right of survivorship. Any such beneficiary may withdraw all or any part of the account balance. The person(s) creating this account type reserves the right to: (1) change beneficiaries; (2) change account types; and (3) withdraw all or part of the deposit at any time. Trust Account Subject to Separate Agreement - We will abide by the terms of any separate agreement which clearly pertains to this account and which you file with us. Any additional consistent terms stated on this form will also apply, SET-OFF: You each agree that we may (without prior notice and when permitted by law) set off the funds in this account against any due and payable debt owed to us now or in the future, by any of you having the right of withdrawal, to the extent of such person's or legal entity's right to withdraw. If the debt arises from a note, "any due and payable debt" includes the total amount of which we are entitled to demand payment under the terms of the note at the time we set off, including any balance the due date for which we properly accelerate under the note. This right of set-off does not apply to this account if: (a) it is an Individual Retirement Account or other tax-deferred retirement account, or (b) the debt is created by a consumer credit transaction under a credit card plan, or (c) the debtor's right of withdrawal arises only in a representative capacity. You agree to hold us harmless from any claim arising as a result of our exercise of our right of set-off. BALANCE COMPUTATION METHOD: We use the daily balance method to calculate the interest on this account. This method applies a daily periodic rate to the principal in the account each day. TRANSACTION LIMITATIONS: You cannot make additional deposits to this account during a term (other than credited interest). You cannot withdraw principal from this account without our consent except on or after maturity. (For accounts that automatically renew, there is a ten day grace period after each renewal date during which withdrawals are permitted without penalty.) In certain circumstances such as the death or incompetence of an owner of this account, law permits, or in some cases requires, the waiver of the early withdrawal penalty specified on page one. FOR ACCOUNTS THAT AUTOMATICALLY RENEW: Each renewal term will be the same as this original one, beginning on the maturity date (unless we notify you, in writing, before a maturity date, of a different term for renewal). You must notify us in writing before, or within a ten day grace period after, the maturity date if you do not want this account to automatically renew. Interest earned during one term that is not withdrawn during or immediately after that term is added to principal for the renewal term. The rate for each renewal term will be determined by us on or just before the renewal date. You may call us on or shortly before the maturity date and we can tell you what the interest rate will be for the next renewal term. On accounts with terms of longer than one month we will remind you in advance of the renewal and tell you when the rate will be known for the renewal period. See your plan disclosure if this account is part of an II2A. /page 2 of 21 ~~ D 1 993 Bankers Systems, Inc., St. Cloud, MN Form CD-AA-NPD 1 /3/2001 FARMERS NATIONAL BANK OF NEWVILLE - A DIVISION OF ADAMS COUNTY NATIONAL BANK NEWVILLE PA 17241 TRUTH IN FOR Terms following a ^ apply only if checked. Acct: 13 MONTH CD SPECIAL Acct #: 172507 Date: DECEMBER 12 2 0 0 6 The interest rate and annual percentage yield stated below are accurate as of the date printed above. If you would like more current rate and yield information please call us at 888-334-2262 This disclosure contains the rules which govern your deposit account. Unless it would be inconsistent to do so, words and phrases used in this disclosure should be construed so that the singular includes the plural and the plural includes the singular. 11ilLFIXED RATE: X~KThe interest rate for your account is 5.010 % with an annual percentage yield of 5.13 %. We will pay this rate UNTIL 01/12/2008 ^ The interest rate and annual percentage yield for your account depend upon the applicable rate tier. We will pay these rates ^ VARIABLE RATE: ^ The interest rate for your account is with an annual percentage yield of Your interest rate and annual percentage yield may change. ^ The interest rate and annual percentage yield for your account depend upon the applicable rate tier. The interest rate and annual percentage yield for these tiers may change. Determination of Rafe: ^ At our discretion, we may change the interest rate on your account. ^ The interest rate for your account ^ The fixed initial rate is not determined by this rule. ^ The initial interest rage on your account Subsequent rates Frequency of Rate Change: ^ We may change the interest rate on your account Your initial interest rate will not change UNTIL 01/12/2008 We may change the interest rate on your account at that time and BS SAVINGS DISCLOSURE T/ME ACCOUNTS ^ The interest rate will not be less than thereafter Limitations on Rate Changes: ^ The interest rate for your account wilt not or more than %. ^ The interest rate will not_ the interest rate initially disclosed to you. °i° COMPOUNDING AND CREDITING: Frequency -Interest- WILL be compounded MONTHLY Interest will be CREDITED TO PRINCIPAL BALANCE ANNUALLY ' Withdraws/ of /ntereast Before Maturity. The annual percentage yield assumes that interest remains on deposit until maturity: A withdrawal of interest will reduce earnings. ^ Required /nterest Distribution. This account requires the distribution of interest and does not allow interest to remain in the account. ^~ffect on Closing an Account. If you close your account before interest is credited, you WILL receive the accrued interest. MINIMUM BALANCE REQUIREMENTS: To Open the Account. You must deposit at least S 5 000.00 to open this account. To Obtain the Annual 1°ercentage Yie/d Disclased. You must maintain a minimum balance of g 5.000.00 in the account each day to obtain the disclosed annual percentage yield. ^ You must maintain a minimum average daily balance of $ to obtain the disclosed annual percentage yield. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure; by the number of days in the period. The period we use is_ BALANCE COMPUTATIOPJ METHOD: Dai/y Ba/ance MethocL We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the Principal in the account each day. ^ Average Daily Ba/ance Method. We use the average daily balance method to calculate interest on your account. This method applies aperiodic-rate to the average daily balance in the account for the perod. 1 he average daily balance Is calculated by adding the principal in the account for each day of the period and dlviding that figure bar the number of days in the period. The period we use is _ ' ACCRUAL OF INTEREST ON NONCASH DEPOSITS: ^ Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checksl. Interest begins to accrue ON THE SAME DAY you deposit noncash items (for example, checks. MATURITY DATE: Your account will mtrture on 01/12/2008 ^ Your account will m~jture in ^ We may accelerate the maturity or call this account, at our FORM ii by more than each option, ~~® ®1992 Bankers Systems, Inc., St. Cloud, MN Form TSD-TIME 6/17/2005 (page 1 of 21 ^ Your account has no definite maturity date. To withdraw any or part of this deposit without penalty, we must receive at least written notice from you of your intention to make a withdrawal. The notice must specify the exact amount and date of the intended withdrawal. Interest will no longer accrue after the withdrawal date specified in your notice on the amount specified in your notice. We may terminate this account by mailing a notice to you of our intention to terminate at least ten days before the termination date. The date of intended withdrawal of the last funds in the account, or the termination date, is considered to be the maturity date. TIME DEPOSIT WITHDRAWAL LIMITATIONS: ~Principa/: YOU CANNOT WITHDRAWAL PRINCIPAL FROM THIS ACCOUNT, WITHOUT OUR CONSENT EXCEPT ON THE MATURITY DATE OR DURING THE TEN (10) DAY GRACE PERIOD FOLLOWING THE MATURITY DATE. ^ /nterest: /nterest Timing: You can withdraw interest AT MATURITY. EARLY WITHDRAWAL PENALTY: A penalty may ^ will be imposed for withdrawals before maturity. The penalty will be an amount equal to: ^ Seven days' interest on the amount withdrawn if the withdrawal is made within the first six days after the deposit. ^ 180 days' interest on the amount withdrawn ^ 90 days' interest on the amount withdrawn ^ 30 days' interest on the amount withdrawn SIX (6) MONTHS OF INTEREST The interest rate we will use to calculate the interest forfeiture will be: THE CURRENT RATE OF THE CERTIFICATE OF DEPOSIT. We will charge the penalty first against any interest then in the account, and any excess will be deducted from the amount you withdraw. If you withdraw some of your funds before maturity, the interest rate for the remaining funds in your account will be 5.010 % with an annual percentage yield of 5.13 %. Minimum Balance Accounts. We reserve the right to, treat any withdrawal which would reduce the balance remaining in the account below the required minimum initial deposit or minimum balance as a withdrawal of the entire account balance and calculate the amount of the penalty accordingly. In certain circumstances, such as the death or incompetence of an account owner, the law permits, or in some cases requires, the waiver of the early withdrawal penalty. Other exceptions may also apply,, for example, if this is part of an IRA or other tax-deferred savings plan. ADDITIONS TO ACCOUNT: ^ You may make no more than deposits into your account each , You may only make deposits into your account ON THE MATURITY DATE AND DURING THE TEN (10) DAY GRACE PERIOD FOLLOWING THE MATURITY DATE. ~~®©1992 Bankers Systems, Inc., St. Cloud, MN Form TSD-TIME 6/1 7/2005 ^ You may make unlimited deposits into your account. ^ You may not make any deposits into your account 'until maturity. ^ The minimum amount you can deposit is S ^ The maximum amount you can deposit is S YOU CANNOT MAKE ADDITIONAL DEPOSITS TO THIS ACCOUNT DURING A TERM (OTHER THAN CREDITED INTEREST) RENEWAL POLICY: ^ Sing/e Maturity.- This account will not renew automatically at maturity. If you do not renew the account, Automatic Renewal.• This account will automatically renew at maturity. YOU will have TEN (10) CALENDAR days after the maturity date to withdraw funds without penalty. Exceotions to Automatic Reneeva/.- This account will not renew if you withdraw the funds on the maturity date or if we receive written notice from you on or before the maturity date of your intention not to renew. ^ There is no grace period following the maturity of this account to withdraw funds without penalty. RENEWAL TERMS: ^ Same Term As Origins/: Each renewal term will be the same as the original term, beginning on the maturity date. Different Term: Each renewal term will be TWELVE MONTHS ,beginning on the maturity date. RENEWAL INTEREST CALCULATION: ~XSame /nterest Ca/cu/ation: Interest will be calculated on the same basis as during the original term. ^ Different /nterest Ca1cu/ation: The interest rate will BONUSES: ^ You will as a bonus ^ You must maintain a minimum to obtain the bonus. ^ To earn the bonus, of $ PRE-MATURITY NOTICE: Your account will mature on 01/12/2008 . If the account renews, the new maturity date will be TWELVE MONTHS ^ The interest rate for the renewed account will be with an annual percentage yield of The interest rate and annual percentage yield have not yet been determined. They will be available on 01/12/2008 Please call 888-334-2262 to learn the interest rate and annual percentage yield for your new account. ^ ADDITIONAL TERMS: FORM 211 (page 2 of 2/ 13 MONTH CD SPECIAL DECEMBER 12 ,2006 172507 ADDITIONAL TRUTH IN SAVINGS DISCLOSURES THE 13 MONTH CERTIFICATE OF DEPOSIT IS AVAILABLE AT ALL OF THE BANK'S RETAIL BANKING LOCATIONS FOR A LIMITED TIME. WHEN THIS 13 MONTH CERTIFICATE OF DEPOSIT MATURES, IT WILL BE AUTOMATICALLY REINVESTED FOR A 12 MONTH TERM. THE INTEREST RATE AND ANNUAL PERCENTAGE YIELD WILL BE DE'.CERMINED AT THE TIME OF REINVESTMENT. YOU CAN CALL THE BANK TOLL-]?REE AT 888-334-ACNB(2262) TO OBTAIN CURRENT INFORMATION. AFTER MATURITY, INTEREST ON THE REINVESTED ACCOUNT WILL BE PAID ANNUALLY AND ADDED TO THE BALANCE IN THE ACCOUNT. SHOULD YOU WISH TO CHANGE THIS METHOD OF PAYMENT, PLEASE CONTACT THE BAN]{ TOLL- FREE AT 888-334-ACNB(2262). FORM 311