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09-4169
TIMOTHY L. KAUFFROATH, Plaintiff VS. SHERRY M. KAUFFROATH, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 2009- J//& 9 CIVIL TERM CIVIL ACTION -LAW IN DIVORCE NOTICE TO DEFEND AND CLAIM RIGHTS YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take prompt action. You are warned that if you fail to do so, the case may proceed without you and a decree of divorce or annulment may be entered against you by the court. A judgment may also be entered against you for any other claim or relief requested in these papers by the plaintiff. You may lose money or property or other rights important to you, including custody or visitation of your children. When the ground for the divorce is indignities or irretrievable breakdown of marriage, you must request marriage counseling. A list of marriage counselors is avail- able in the Office of the Prothonotary at CUMBERLAND COUNTY COURTHOUSE CARLISLE, PENNSYLVANIA 17013 IF YOU DO NOT FILE A CLAIM FOR ALIMONY, DIVISION OF PROPERTY, LAWYER'S FEES OR EXPENSES BEFORE A DIVORCE OR ANNULMENT IS GRANTED, YOU MAY LOSE THE RIGHT TO CLAIM ANY OF THEM. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 2 LIBERTY AVENUE CARLISLE, PENNSYLVANIA 1701 MAX J. SMITH, J IV., Esquire JARAD W. HANDELMAN, Esquire Attorney for Plaintiff P.O. Box 650 Hershey, PA 17033 (717) 533-3280 Max J. Smith, Jr., Esquire Attorney I.D. #32114 Jarad W. Handelman, Esquire Attorney I.D. #82629 James, Smith, Dietterick & Connelly, LLP P.O. Box 650 Hershey, PA 17033 Telephone: 717-533-3280 Fax: 717-533-2795 e-mail: mis@jsdc.com TIMOTHY L. KAUFFROATH, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA VS. NO. 2009- 411 6 9 CIVIL TERM SHERRY M. KAUFFROATH, CIVIL ACTION -LAW Defendant : IN DIVORCE COMPLAINT IN DIVORCE AND NOW comes the Plaintiff, TIMOTHY L. KAUFFROATH, by his attorney, MAX J. SMITH, JR., Esquire, and seeks to obtain a Decree in Divorce upon the grounds hereinafter more fully set forth: 1. The Plaintiff, TIMOTHY L. KAUFFROATH, is an adult individual and citizen of the United States of America, whose address is P.O. Box 653, Mechanicsburg, Cumberland County, Pennsylvania 17055. 2. The Defendant, SHERRY M. KAUFFROATH, is an adult individual and citizen of the United States of America, whose address is 580 N. Lime Street, Elizabethtown, Lancaster County, Pennsylvania 17022. 3. Plaintiff and Defendant have been bona fide residents in the Commonwealth of Pennsylvania for at least six (6) months immediately previous to the filing of this Complaint. 4. Plaintiff and Defendant were married on or about November 23, 1979 in Elizabethtown, Pennsylvania. 5. Plaintiff and Defendant separated on or about June 16, 2007, a period in excess of two (2) years. 6. Plaintiff avers that there are no children of the parties under the age of 18. 7. Neither Plaintiff nor Defendant is a member of the United States Armed Services. 8. Plaintiff and Defendant have both been advised of the availability of marital counseling and that each may have the right to request that the court require the parties to participate in counseling. 9. Plaintiff avers that there has been no prior action for divorce or annulment of the marriage filed by either party in this or any other jurisdiction. 10. Plaintiff avers that the marriage is irretrievably broken. WHEREFORE, Plaintiff prays your Honorable Court to enter a Decree of Divorce from the bonds of matrimony. Date: June 9 2009 Re ectfull submitted, MAX J. SMITH, JR. squire I.D. No. 32114 JARAD W. HANDELMAN, Esquire I.D. No. 82629 James, Smith, Dietterick & Connelly LLP P.O. Box 650 Hershey, PA 17033 (717) 533-3280 I verify that the statements made in this Complaint are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Fivcl 2QD9 JUN 18 FE 3= 18 \ tl 1,11 ? ?? ?? ,?3g.sz? /W- 4 4-vi 7e-5.p A-?t ), 6 p/ TIMOTHY L. KAUFFROATH, Plaintiff vs. SHERRY M. KAUFFROATH, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO.2009-/(? 9 CIVIL TERM CIVIL ACTION -LAW IN DIVORCE AFFIDAVIT UNDER SECTION 3301(d) OF THE DIVORCE CODE NOTICE If you wish to deny any of the allegations set forth in this Affidavit, you must file a Counteraffidavit within twenty (20) days after this Affidavit has been served on you or the allegations will be admitted. 1. A Complaint in Divorce under Section 3301(c) and 3301(d) of the Divorce Code is being filed contemporaneously herewith. 2. The parties to this action separated on June 16 , 2007 and have continued to live separate and apart for a period of at least two (2) years. 3. The marriage is irretrievably broken. 4. I understand that I may lose rights concerning alimony, division of property, lawyer's fees or expenses if I do not claim them before a divorce is granted. I verify that the statements made in this Affidavit are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904 relating to unsworn falsification to authorities. DATE: June 17 , 2009 TIMOTHY L. KAUFF H FILCH r= C OF THE )TAPY 2 009 J 1'' t 3 PM 3: 2 0 CU'J ?? TIMOTHY L. KAUFFROATH, IN THE COURT OF COMMON PLEAS Plaintiff C ERLAND COUNTY, PENNSYLVANIA vs. N .2009-4169 CIVIL TERM SHERRY M. KAUFFROATH, C IL ACTION -LAW Defendant IN IVORCE AND NOW, this 19th day of June, 2009, I, Plaintiff, hereby certify that I have this day sent a c Under Section 3301(d) of the Divorce Code by deI States mail, postage prepaid, certified mail #7008 Pennsylvania, addressed to: Sherry M. Kauffroath 580 N. Lime Street Elizabethtown, PA 17022 Mailing and return receipt cards attached AX J. SMITH, JR., Esquire, Attorney for y of Complaint in Divorce and Affidavit iting a certified copy of same in the United 10 0001 8217 7885 at Hummelstown, M J. SMITH, J~., Esquire J es, Smith, Dietterick & Connelly LLP P. .BOX 650 He shey, PA 17033 (71 ) 533-3280 y © (UOI/I@SPC M311 Ulllyf NO InS r- ru P~IBge $ ~ ~ Cerdfled Fee a.~c ~ Retum Receipt Fee (Endorsement Required) ~ ~ ~ , , O Restricted Delivery Fee (Endorsement RequiredJ) O ~ O Total Postage & Fees m ~ ' ()~ o~ ~ t To „~ 'iC/ O O b`lreet, Apt ~ ---...... _~'"'""(('~~"' a PO Bar IVo. ~ ~ /~[ s1=1 r~ nir: F.-::-~..,...T..~ .........:.....a. r... • doil~plete Item 1, 2, and 3. Ado complete + `' Mlwi 4 if Restricted Delivery is desired. ~ .MMint your name and address on the reverse 00 that we can return the card to you. • IliMath this card to the hack of the mailpleos;' or en tl~e front H space permits. 4. ArMai`e Addressed to: ~~,n U ~ R: t t (3a.t~~vwh , 0~4i. t'~ 0~2 USE ~~~~~~~ 1~ ,.H,'* '~ ~'". •• 1 ~OJ- l Aeerrt . Received ~ (P~nted ~ C. date of . is delNrery address dlffererR tran kern 17~ ^ Yes If YES, enter delivery address below: D No s'iSrpe ~ Mall ^ Ertprese Mall ^ Registered ^ Return Receipt for Meroherr~ ^ Insured Mall ^ C.O.D. iiedein~rd e.arwr+rJ d~ ~ I~.ry z ~' 7D08 13D0 D D1 8217 7885 t8 iWgnr 1 lhiprl~IMY 2+0lM DdrNt#Mlc R.o.+pt ~mwsat~~ao ~Il_~v- - -~c Tea=" ~, ,.~~~~, 'J~ .._ i~ .:~~ Z~~3 wv'i. 17 Pik ~~ :~ i Ct;~V. .,;'Jt~~ '~; vi v~ i'it„1`~It~ JoAnne Murphy, Esquire 2 E. High Street, P.O. Box 547 Maytown, PA 17550 (717) 587-4855 FAX (717} 426-3715 Attorney I.D. #80838 Attorney for Defendant rye rr i- oZDlO AV(s 13PY11 ~~`~b .. ;~. ~' IN THE COURT OF COMMON PLEAS OF CUMBERLANDCOUNTY, PENNSYLVANIA CIVIL ACTION -LAW TIMOTHY L. KAUFFROATH, ) Plaintiff ) vs. ) SHERRY M. KAUUFROATH, ) Defendant ) No. 2009-4169 ACTION IN DIVORCE MOTION FOR APPOINTMENT OF DIVORCE MASTER Sherry M. Kauffroath, the Defendant, moves the Court to appoint a Divorce Master with respect to the following claims: (x) Divorce () Annulment (x) Alimony () Alimony Pendente Lite (x) Distribution of Property () Support (x) Counsel Fees (x) Costs and Expenses and in support of the motion states: (1) Discovery is not complete as to the claim(s) for which the appointment of a Master is required. (2) The Plaintiff is represented by Max J. Smith, Jr., Esquire. (3) The statutory ground(s) for divorce are: Irretrievable breakdown (4) Delete the inapplicable paragraph(s): The action is contested with respect to the following claims: Equitable Distribution Alimony Counsel Fees Costs and Expenses 5. The action does not involve complex issues of law or fact. 6. The hearing is expected to take 1 day. 7. Additional information, if any, relevant to the motion: By Moving Party Name of Client: Sherry M. Kauffroath Counsel Name: JoAnne Murphy Counsel Address: 2 E. High St., P.O Box 547 Maytown, PA 17550 Attorney I.D. #80838 Counsel Email: jmurphylaw@comcast.net Party's Address & Tel. No. N/A (if not represented by counsel) Non-Moving Party Name of Client: Timothy L. Kauffroath Counsel Name: Max J. Smith, Jr. Counsel Address: 134 Sipe Avenue, P.O. Box 650, Hershey, PA 17033 Attorney I.D. #32114 Counsel Email: Party's Address & Tel. No. N/A (if not represented by counsel) JoAnne Murphy, Esquire 2 E. High Street, P.O. Box 547 Maytown, PA 17550 (717) 587-4$55 FAX (717) 426-3715 Attorney I.D. #80838 Att~arney for Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLANDCOUNTY, PENNSYLVANIA CIVIL ACTION -LAW TIMOTHY L. KAUFFROATH, ) Plaintiff ) vs. ) SHERRY M. KAUUFROATH, ) Defendant ) No. 2009-4169 ACTION IN DIVORCE CERTIFICATE OF SERVICE I, JoAnne Murphy, Esquire, Attorney for the above-named Defendant, hereby certify that I duly served a copy of the foregoing Order unto the following person by United States first class mail, addressed as follows: Max J. Smith, Jr., Esquire Attorney for Plaintiff P.O. Box 650 Hershey, PA 17033 Date: JoAnne Murphy, Esquire 2 E. High Street, P.O. Box 547 Maytown, PA 17550 (717) 587-4855 FAX (717) 426-3715 Attorney I.D. #80838 Attorney for Defendant tGVr._ .J i;i C it a ova )9"a - 13 Piz Zt:At 5 IN THE COURT OF COMMON PLEAS OF CUMBERLANDCOUNTY, PENNSYLVANIA CIVIL ACTION - LAW TIMOTHY L. KAUFFROATH, ) Plaintiff ) VS. ) SHERRY M. KAUFFROATH, ) Defendant ) No. 2009-4169 ACTION IN DIVORCE NOTICE TO DEFEND AND CLAIM RIGHTS You have been sued in Court. If you wish to defend against the claims set forth in the following pages, you must take prompt action. You are warned that if you fail to do so, the case may proceed without you and a decree of divorce or annulment may be entered against you for any other claim or relief requested in these papers by the Defendant. You may lose money or property or other rights important to you. When the ground for the divorce is indignities or irretrievable breakdown of the marriage, you may request counseling. A list of marriage counselors is available in the Office of the Prothonotary. IF YOU DO NOT FILE A CLAIM FOR ALIMONY, DIVISION OF PROPERTY LAWYER'S FEES OR EXPENSES BEFORE A DIVORCE OR ANNULMENT IS GRANTED, YOU MAY LOSE THE RIGHT TO CLAIM ANY OF THEM. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 3 Add `C Cis eke toqd P,-#0'--2yC7Q JoAnne Murphy, Esquire 2 E. High Street, P.O. Box 547 Maytown, PA 17550 (717) 587-4855 FAX (717) 426-3715 Attorney I.D. 480838 Attorney for Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLANDCOUNTY, PENNSYLVANIA CIVIL ACTION - LAW TIMOTHY L. KAUFFROATH, ) Plaintiff ) VS. ) SHERRY M. KAUFFROATH, ) Defendant ) No. 2009-4169 ACTION IN DIVORCE PETITION TO RAISE DEFENDANT'S CLAIMS COUNT I Request for equitable distribution of marital property under Section 3502(a) of the Divorce Code. 1. Plaintiff and Defendant have acquired property both real and personal during their marriage. 2. Plaintiff and Defendant have been unable to agree as to an equitable distribution of said property to the date of the filing of the Complaint in Divorce for the same. WHEREFORE, Defendant requests Your Honorable Court to equitably divide all marital property. X COUNT - II Request for spousal support andlor alimony pendente lite and alimony under Sections 3701(a) and 3702 of the Divorce Code 3. Defendant is unable to sustain herself during the course of litigation. 4. Defendant lacks sufficient property to provide for her reasonable needs. 5. Defendant requests the Court to enter an award of spousal support and/or alimony pendente lite until such time final hearing and thereupon to enter an order of alimony in her favor pursuant to Section 3710 (a) and Section 3702 of the Divorce Code. WHEREFORE, Defendant respectfully requests this Honorable Court to enter an award of spousal support and/or alimony pendente lite until final hearing and thereupon to enter an order of alimony in her favor pursuant to Section 3701(a) and Section 3702 of the Divorce Code. COUNT - III Request for counsel fees, costs and expenses under Section 3104, Section 3323 and Section 3702 of the Divorce Code 6. The prior paragraphs of this Complaint are incorporated herein by reference thereto. 7. Defendant has employed JoAnne Murphy, Esquire to represent her in this matrimonial cause. 8. Defendant is unable to pay the necessary counsel fees, costs and expenses and Plaintiff is more than able to pay them. 9. Reserving the right to apply to the Court for temporary counsel fees, costs and expenses, prior to the final hearing, Defendant requests that, after final hearing, the Court order Plaintiff to pay Defendant's reasonable counsel fees, costs and expenses. WHEREFORE, Defendant respectfully requests that, pursuant to Section 3104, Section 3323 and Section 3702 of the Divorce Code, the Court enter an Order directing Plaintiff to pay Defendant's reasonable counsel fees, costs and expenses. Respectfully submitted, Q iz()l Date. 11 VERIFICATION I verify that the statements made in this Petition to Raise Defendant's Claims are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904 relating to unworn falsification to authorities. Date: §Iakriy M. Kauffrb 5 TIMOTHY L. KAUFFROATH, Plaintiff vs. SHERRY M. KAUFFROATH, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 09-4169 CIVIL IN DIVORCE ORDER APPOINTING MASTER AND NOW, August 20, 2010, E. Robert Elicker, II, Esquire is appointed master with respect to the following claims: Divorce, alimony, distribution of property, counsel fees and costs and expenses. BY THE COURT, ?Mj. Smith, Jr., Esquire For the Plaintiff JoAnne Murphy, Esquire For the Defendant E. Robert Elicker, II, Esquire Master :rlm Qzr*ec e?ttgi?L Kevin VP-ess, P. J. c_ = O P 4. __ ~ a ~ ;. ~ ~ JoAnne Murphy, Esquire ~ c~ -~ 2 E. High Street, P.O. Box 547 ~Z~j ~' Maytown, PA 17550 ~ C ~ ~ ~+ (717) 587-4855 FAX (717) 426-3715 ~ Attorney I.D. #80838 Attorney for Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION -LAW TIMOTHY L. KAUFFROATH, ) Plaintiff ) No. 2009-4169 vs. ) SHERRY M. KAUFFROATH, ) Defendant ) ACTION IN DIVORCE ACCEPTANCE OF SERVICE I, Max J. Smith, Jr, Esquire, attorney of record for Timothy L. Kauffroath, Plaintiff, in the above-captioned divorce action state that I personally received a copy of the Petition to Raise Defendant's Claims by first class mail. I accept service on behalf of Timothy L. Kauffroath and acknowledge I am authorized to do so. I verify that the statements made in this Acceptance are true and correct. I understand that false statements made in this Acceptance are subject to the penalties of 18 Pa. C.S.A. Section 4904 relating to unsworn falsification to authorities. Date: ~' ~ ~ 0 ~. ` l Max J. Smith, Esquir Attorney from Timothy L. Kauffroath, Plaintiff 19 Max J. Smith, Jr., Esquire Attorney I.D. 432114 Jarad W. Handelman, Esquire Attorney I.D. 482629 James, Smith, Dietterick & Connelly, LLP P.O. Box 650 Hershey, PA 17033 Telephone: 717-533-3280 Fax: 717-533-2795 e-mail: mjs jsdc.com IDSEP 1b?Aj 3:r,`'I CUM'_ V I f C?C?iI`rv i`LVr°'u11r? TIMOTHY L. KAUFFROATH, Plaintiff vs. SHERRY M. KAUFFROATH, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 2009-4169 CIVIL, TERM CIVIL ACTION -LAW IN DIVORCE PLAINTIFF'S ANSWER TO PETITION TO RAISE DEFENDANT'S CLAIMS AND NOW COMES the Plaintiff, TIMOTHY L. KAUFFROATH, by his attorney, MAX J. SMITH, JR., Esquire, and respectfully Answers the Plaintiffs Complaint as follows: COUNTI REQUEST FOR EQUITABLE DISTRIBUTION OF MARITAL PROPERTY UNDER SECTION3502(a) OF THE DIVORCE CODE L-2. Admitted. COUNT II REQUEST FOR SPOUSAL SUPPORT AND/OR ALIMONY PENDENTE LITE AND ALIMONY UNDER SECTIONS 3701(a,) AND X3702 OF THE DIVORCE CODE 3. Denied. Defendant is capable of gainful employment and is therefore able to sustain herself completely during the course of litigation. 4. Denied. Defendant has sufficient property to provide for her reasonable needs and is able to sustain herself completely through appropriate employment. 5. Denied. Defendant is able to support herself through gainful employment and therefore her request for spousal support and/or alimony pendente lite and alimony should be denied. COUNT III REQUEST FOR COUNSEL FFES COSTS AND EXPENSES UNDER SECTION 3104, SECTION 3323 AND SECTION 3702 OF THE DIVORCE CODE 6. Neither admitted nor denied, as no response is required. 7. Admitted. 8. Denied. Defendant is able to pay her counsel fees, costs and expenses. It is further denied. that Plaintiff is more than able to pay same. 9. Denied. It is denied that Plaintiff has the ability to pay Defendant's counsel fees, costs and expenses. WHEREFORE, Plaintiff prays this Honorable Court to: (a) equitably divide the marital property remaining between the parties; (b) deny Defendant's request for spousal support and/or alimony pendente lite and alimony; (c) deny Defendant's request for counsel fees, costs and expenses; (d) deny any and all other relief which has been requested by Defendant; and (e) order such further relief as the Court may determine equitable and just. Respectfully submitted, Date: September 1( , 2010 t? MAX J. SMITjEsquire I.D. No. 32114 JARAD W. HANDELMAN, Esquire I.D. No. 82629 James, Smith, Dietterick & Connelly LLP P.O. Box 650 Hershey, PA 17033 (717) 533-3280 I verify that the statements made in this Answer are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. TIMOTHY L. KA TIMOTHY L. KAUFFROATH, Plaintiff vs. SHERRY M. KAUFFROATH, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA : NO. 2009-4169 CIVIL TERM CIVIL ACTION - LAW IN DIVORCE CERTIFICATE OF SERVICE AND NOW, this day of September, 2010, I, MAX J. SMITH, JR., Esquire, Attorney for Plaintiff, hereby certify that I have this day sent a copy of Plaintiff's Answer to Petition to Raise Defendant's Claims by depositing a certified copy of the same in the United States mail, postage prepaid, at Hershey, Pennsylvania, addressed to: JoAnne Murphy, Esquire P.O. Box 547, 2 East High Street Maytown, PA 17550-0547 MAX J. SMITH, JR., Esquke I.D. No. 32114 JARAD W. HANDELMAN, Esquire I.D. No. 82629 James, Smith, Dietterick & Connelly LLP P.O. Box 650 Hershey, PA 17033 (717) 533-3280 w FILED-OFFICE OF THE PROTHONO iAr".y 2011 JUL -5 PM 2: 14 Max J. Smith, Jr., Esquire CUMBERLAND COUN Attorney L D. #32114 PENNSYLVANIA Jessica E. Lowe, Esquire Attorney I. D. #208041 James, Smi h, Dietterick & Connelly, LLP P.O. Box 6 0 Hershey, P 17033 Telephone: 717-533-3280 Fax: 717-5 3-2795 e-mail: m' sdc.com e-mail: i el ,i sdc_ .corn TIMOTHY L. KAUFFROATH, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA VS. NO. 09-4169 SHERRY . KAUFFROATH, CIVIL ACTION -LAW Defendant IN DIVORCE PRE-TRIAL STATEMENT OF PLAINTIFF, TIMOTHY L. KAUFFROATH PURSUANT TO PA.RC.P. 1920.33(b I. A. I MARITAL ASSETS ASSET VALUE DATE OF VALUATION NON-MARITAL PORTION LIEN 52 0 N. Lime $184,000.00 9/29/10 No No Street Marital R esidence) 838 S. 20'4 Street $370,000.00 4/23/10 No No (J) 1 A. MARITAL ASSETS (CONTINUED) ASSET VAL UE DATE OF NON-MARITAL LIEN VAL UATION PORTION 173 Berryh ill $72,000.00 2/24/10 No No S treet Q) The Flex -funds $120,913.00 DOS No No Mon ey Market Fund (J) Inte grity Bank $67,331.00 DOS No No Ac counts Q) Sus quehanna $1,800.00 DOS No No Ban k Account (J) IN Insurance $31,800.00 DOS No No (Own ed by H, W (cash value) i nsured) 2 002 Jeep $7,000.00 DOS No No Gran d Cherokee 40 01(k) (H) $48,114.00 DOS No No A eriprise $155,734.00 DOS No No f inancial Reti rement (H) B. I NON-MARITAL ASSETS ASSET VALUE DATE OF LIEN REASON VAL UATION FOR EXCLUSION 103 W. Trindle $380,000.00 12/31/09 Yes Acquired post- Road, separation Me chanicsburg (H) K L Land and $265,084.00 12/31/09 Yes Acquired post- Cat tle, LLC (H) separation 005 Jeep $14,000.00 12/31/09 Yes Acquired post- angler (H) separation 20 Ford F-250 $16,000.00 12/31/09 No Acquired post- (H) separation Uni on National - $62,745.00 12/31/09 No Opened post- Mo ney Market separation A ccount (H) Ful on Bank CDs $8,100.00 12/31/09 No Opened post- (H) separation II. intends to call a vocational expert to testify as to Defendant's earning capacity. Plaintiff r*rves the right to retain additional expert witnesses as may be required prior to trial and to cross-examine any expert witness retained by Defendant for trial. 3 III. Plai tiff anticipates calling only the parties as witnesses. Plaintiff reserves the right to cross-examine any witness called by Defendant at the time of trial and to offer rebuttal witnesses at the time f trial. Plaintiff reserves the right to supplement this response prior to trial. IV. LIST OF 1. Plaintiff will present statements of all assets listed in Part A. above to substantiate the listed account values. 2. Plaintiff will present Kelley Blue Book Values to substantiate the value of the motor vehi les listed in PartA. and B. above. 3. Plaintiff will present deeds to the real properties listed in Part A. above to the extent own rship of such property is disputed. 4. Plaintiff will present documentation establishing the value of any asset and/or liability list d in either of the parties' Inventory and Appraisement. 5. Plaintiff will introduce account statements detailing the expenditure of the monies contained i any asset identified in Part A. above. b. Plaintiff reserves the right to supplement this response prior to trial and offer additional e hibits at the time of trial and in rebuttal to Plaintiff's testimony and evidence. V. PARTIES' See attached 2010 federal income tax return. 4 VI. PARTIES' s expense information will be provided. VII. Plaintiff's 401(k) account is capable of valuation by reference to the statements of this asset. VIII. party should be responsible for his or her own counsel fees and expenses. IX. PERSONAL PROPERTY The arties anticipate being able to divide their personal property equitably, without addressing such property in the Master's proceeding or further involvement from the Court. To the extent they cannot, Defendant reserves the right to submit valuation of specific items of personal pr e rty to the Master and/or to request a distribution of such property to Defendant as part of the e itable distribution in the case. X. D T AMOUNT DATE DEBT INITIAL PAYMENTS EVIDENCE AS OF INCURRED AMOUNT OF SINCE DOS DOS DEBTIPURPOSE XI. PROPOSED ECON An e amination of the factors listed in Section 3502 of the Divorce Code leads to the conclusion that the marital assets should be divided equally. The Court should dismiss Defendant's claims for alimony and for counsel fees. 5 Respectfully submitted, JAMES, SMITH, DIETTERICK & CONNELLY LLP Date: Jul3 5, 2011 By: J. SMI JJR., Esquire 1. . o. 32114 JESSICA E. LOWE, Esquire I.D. No. 208041 James, Smith, Dietterick & Connelly LLP P.O. Box 650 Hershey, PA 17033 (717) 533-3280 LL 1040 Name, R Forth, Address, i and SSN N T- T If a C SI L .S. Individual Income Tax Return year Jan. 1-Dec. 31, 2010, or other tax year beginning first name an Initia spouse's first name 2010 (99) , 2010, ending ast name AUFFROATH FROATH IRS Use Only - Do not write or staple in this space. Your social security number 313 66 :8209 Spouse's social security number 174:'48::6063 See separate i E A Ho 1( a aoaress (numoer ana street). It you nave a F.U. Dox, see instructions. 39 TRINDLE ROAD Apt. no. Make sure the SSN(s) above A and on line sc are correct. nstructions. R L City, town or post office, state, and ZIP code. Checking a box below will not Presidential Y CHANI C SBURG , PA 17055 change your tax or refund. Election Campaign ? Check here if you, or your spouse d filing jointly, want $3 to go to this fund ..................... ? E= You = Spouse Filing Status 1 Single 4 Head of household (with qualifying person). If the qualifying 2 X Married filing jointly (even if only one had income) person is a child but not your dependent, enter this child's Check only one box. and full name here. ? . 5 = Qualifying widow(er) with dependent child Exemptions 6a L KJ Yourself. If someone can claim you as a dependent, do not check box 6a .......... onwand ", d b [ XI spouse ..................................... ..... No. of children 0 ependents: (2) Dependent's social (3) Dependent's cnl on Sc who: relationship to underage 17 * lived with yw ( )First name Last name security number you uaifying for tax credit child • did not live with ETTY J KAUFFROATH 52 :36 : 2 2 2 6 OTHER you due to divorce or separation (see instructions) If more than four dependents, see Dependents on Sc 1 instructions and not entered above check here ? Add numbers d Total number of exemptions claimed ............................................... ............................. ............................. on lines ... above ? 3 Income 7 Wages, salaries, tips, etc. Attach Form(s) W-2 ................................ ..__--._.................. ..........__.. 7 8a Taxable interest. Attach Schedule B if required _ ... _......._ __ _..__ .............. ............... 8a 1,143. Attach Form(s) W-2 here. Also b Tax-exempt interest. Do not include on line 8a .......... ... ................. . 8b 1 , 3 3 3 attach Forms 9a Ordinary dividends. Attach Schedule B if required ............................. ............................. ................. 9a W-26 and b Qualified dividends 9b 1099-R if tax was withheld. 10 Taxable refunds, credits, or offsets of state and local income taxes ........ .......... ................... ................. 10 11 Alimony received ............................................. ........... 11 f 12 Business income or (loss). Attach Schedule C or C-EZ ....................... ........................ ................. 12 44 , 5 5 . I you did not get a W-2 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here ................ . ? 0 13 , see page 20. 14 Other gains or (losses). Attach Form 4797 ...................................... .............................. ................ 14 15a IRA distributions ..................... 15a 4 , 759. b Taxable amount 15b Enclose, but do t tt h 16a Pensions and annuities 16a 57 , 79U . b Taxable amount . ................ 16b no a ac , any payment Also, 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Atta ch Schedule E ....... ................. 17 4,135. please use 18 Farm income or (loss). Attach Schedule F ...................................... ............................. ............... 18 Form 1040-V. 19 Unemployment compensation .................................................. ............................. ................. 19 20a Social security benefits ............ 20a j b Taxable amount . ................ 20b 21 Other income. List type and amount 21 22 Combine the amounts in the far right colu n for lines 7 through 21. This is our total income ......... ? 22 49,8297 23 Educator expenses ................................ .....,....._......... 23 Adjusted 24 ertain business expenses of reservists, performing artists, and fee-basis government fficials.AttachForm2106or2t06-EZ ...... .................................... , 24 Gross 25 Health savings account deduction. Attach Form 8889 ...................... 25 Income 26 Moving expenses. Attach Form 3903 27 One-half of self-employment tax Attach Schedule SE ........................ 27 1,384. 28 Self-employed SEP, SIMPLE, and qualified plans .... 28 29 elf-employed health insurance deduction .............................. ........ 29 30 enalty on early withdrawal of savings .._.._._... .___. 30 31a Alimony paid b Recipient's SSN ? 31a 32 RA deduction ...................... . ..................................... ............... 32 33 Student loan interest deduction .. ................................................. 33 34 uition and fees. Attach Form 8917 ............................ .................... 34 35 cmestic production activities deduction. Attach Form 8903 ............... 35 36 dd lines 23 through 31a and 32 through 35 ................................. _.. ... ......... ............... . .... .......... 36 1,384. 010001 01-27-11 37 ubtract line 36 from line 22. This is your adjusted gross income ...... ........ .. _.-_ .. _..... -_ ? 37 4 8 , 4 . LHA For Disclosure, ivacy Act, and Paperwork Reduction Act Notice, see separate instructions. 3 Married filing separately. Enter spouse's SSN above name here ? Form 1040 (2olo) Form 1040 (2010) TIM & SHERRY KAUFFROATH 313-66-8209 Tax and 38 Amo Int from line 37 (adjusted gross income) ....................................................................................... 38 Credits 39a Chec if b If you 40 Item El You were born before January 2, 1946, El Blind. Total boxes ( = Spouse was born before January 2, 1946, = Blind. checked ... ? 39a r spouse itemizes on a separate return or you were a dual-status alien, check here ...... ? 39b zed deductions (from Schedule A) or your standard deduction (see instructions) .... ........ _ ......... ... .... 0 41 Subt act line 40 from line 38 ............................................... ....... 41 42 Exe ptions. Multiply $3,650 by the number on line 6d ........................................................................... 42 43 Taxa ble income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0 ......... 43 44 Tax. Check if any tax is from: a[::] Form(s) 8814 bO Form 4972 ............................................... 44 45 Alte ative minimum tax. Attach Form 6251 45 46 Add ines 44 and 45 -.... _...._.............. ......................................................................... ........... ? 46 47 Forei 48 Cred 49 Educ 50 Retir 51 Chil 52 Resi 53 Othe 54 Add gn tax credit Attach Form 1116 if required ....................................... 47 t for child and dependent care expenses. Attach Form 2441 .................. 48 ation credits from Form 8863, line 23 ............................_.......-------- 49 ment savings contributions credit Attach Form 8880 ....- 50 tax credit (see instructions) ......................................................... 51 ential energy credits. Attach Form 5695 ,,,,..... 52 credits from Form: a= 3800 b D 8801 c Q 53 ines 47 through 53. These are your total credits - ........................................................................ 4 55 Subt act line 54 from line 46. If tine 54 is more than line 46, enter -0- ....... ......... ......... ............. ? 55 Other 56 Self mployment tax. Attach Schedule SE ............................................................................................ 56 Taxes 57 Unre orted social security and Medicare tax from Form: a = 4137 b 0 8919 .............. ................. 57 58 Addi ional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required .... .......................... 58 59 a E: I Form(s) W-2, box 9 b 0 Schedule H G = Form 5405, line 16 ........ -._.._ 59 60 Add ines 55 through 59. This is your total tax ......._ ._......... ._........................................................ ? 60 Payments 61 Fede al income tax withheld from Forms W-2 and 1099 ........................... 61 62 201 estimated tax payments and amount applied from 2009 return ............ 62 11 , 0 . 63 Maki ng work pay credit Attach Schedule M ................. 63 800 If you have 64aEarn .................................................... ed incomecredit(EIC)....__...... 644 a qualifying child, attach Schedule EIC. b Nont 65 Addi axable combat pay election ............... 64b tional child tax credit Attach Form 8812 65 66 Ame rican opportunity credit from Form 8863, line 14 ................................. 66 67 First time homebuyer credit from Form 5405, line 10 ................................. 67 68 Am nt paid with request for extension to file ...................................... 68 69 Exc s social security and tier 1 RRTA tax withheld ................................. 69 70 Cre for federal tax on fuels. Attach Form 4136 70 71 Cre is from Form: a 02439 b 0 8839 c = 8801 d 08885 ,.. 71 72 Add ines 61, 62, 63, 64a, and 65 through 71. These are your total payments ... ......... ........................... ? 72 Refund 73 If fin 72 is more than line 60, subtract line 60 from line 72. This is the amount you overpaid ........................... 73 744 Am nt of line 73 you want refunded to you. If Form 8888 is attached, check here ........................ ? 0_ 74a Direct deposit? Roulin See ? bnumbe instructions. 75 Am Account ? Type: = Checking 0 Savings ?dnumber nt of line 73 you want applied to your 2011 estimated tax ......... ? 75 9,032. Amount 76 Am unt you owe. Subtract line 72 from line 60. For details on how to pay, see instructions ..................... ? 76 You Owe 77 Esti ated tax penalty see instructions ................ 77 Page 2 ,444. 37,941. 10,503. 0,95 0. 0. 0 2,768. 11,800. Third Party Do yo want to allow another person to discuss this return with the IRS (see instructions)? L& Yes. Complete below. I_ I No Designee ?e?,,geeE ?M . SCOTT HURSH, CPA phone? 717-757-6999 number PINe tfiicatlon? 2 9 2 01 Under pens ties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, Sign and comple e. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here Your s gnature Date II ?Your occupation Daytime phone number Joint return? ( LSELF-EMPLOYED 1717-525-4367 See page 12. Keep a copy Spoil e's signature. If a pint return, of must sign. for your records. Paid Preparer M. S OZ Use Only Firm's na e ? name FPr:p.Is signature COTT HURSH, HURSH, CPA PA 010002 ? ? YORK , PA 1740 2 - 2 916 12.22.10 Firm's add ess 1111. 4/12/1 Check LJ H P71N salt-employed 60069201 Phone no./ J- I - I J ! - ELF-EMPLOYED Fete SCHEDULE A Itemized Deductions OMB No. 1545-0074 (Form 1040) 2010 Department of the Treasury Attach to Form 1040. ? See Instructions for Schedule A (Form 1040). Attachment Internal Revenue Service ( 1 Sequence No. 07 TIM & SHERRY KAUFFROATH 313:668209 Medical C aution. Do not include expenses reimbursed or paid by others. and 1 M edical and dental expenses (see instructions) .................................................. 1 Dental 2 E t iter amount from Form 1040, line 38 .__._._.. ........ 2 Expenses 3 M ultiply line 2 by 7.5% (.075) ............ .................................................................. 3 4 S btract line 3 from line 1. If line 3 is more than line 1 enter -0 ............................................................. 4 Taxes You 5 S ate and local (check only one box): Paid a OX Income taxes, or ..........................SEE STATEMENT 4 5 3,504. b E::] General sales taxes 6 R al estate taxes (see instructions) ..................................................................... 6 6,112. 7 N w motor vehicle taxes from line 11 of the worksheet on page 2 (for certain ve hicles purchased in 2009). Skip this line if you checked box 5b ..... ... ................ 7 8 her taxes. List type and amount Illo - ------------------- ;' -------------- 8 9 ---------------------- d lines 5 through 8 ............................................................................................. ........................... 9 9,616. Interest 10 H me mortgage interest and points reported to you on Form 1098 ........................ 10 20,747. You Paid 11 H :)me mortgage interest not reported to you on Form 1098. If paid to the person fr om whom you bought the home, see instructions and show that person's name, id entifying no., and address 110' Note. ------------------------------------ ------------------ ---- ------ 11 Your mortgage 12 P --- - ints not reported to you on Form 1098. See instructions for special rules ......... 12 interest deduction may 13 I`V ortgage insurance premiums (see instructions) .......................... STMT 5 13 , 7 8 be limited (see 14 I estment interest. Attach Form 4952 if required. (See instructions.) .. 14 instructions). 15 A d lines 10 through 14 .......................................................................................... ........................... 15 22,515. Gifts to 16 G ifts by cash or check. If you made any gift of $250 or more, see instructions 16 5,810. Charity 17 her than by cash or check. If any gift of $250 or more, see instructions. If you made a Y ............. . :)u must attach Form 8283 if over $500 17 gift and got a 18 C benefit for it ............... ............................... arryover from prior year 18 .............................................................................. . , see instructions. 19 d lines 16 through 18 .................. 19 5 810 Casualty and 1 Theft Losses 20 C asualty or theft loss(es). Attach Form 4684. See instructions.) ............................... .................. 20 Job Expenses 21 U reimbursed employee expenses - job travel, union dues, job education, etc. and Certain A ttach Form 2106 or 2106-FZ if required. (See instructions.) Miscellaneous ? Deductions ---------------------------- ----- ----------- ---------------------- 21 22 T preparation fees .......................................................................................... 22 23 her expenses -investment, safe deposit box, etc. List type and amount 10 - ------------------------------------- ------------------------------------- ------------------------------------- 23 24 d lines 21 through 23 ............................. ........................... ............. 24 25 E ter amount from Form 1040, line 38 .............................. 25 26 ultiply line 25 by 2% (.02) 26 27 S btract line 26 from line 24. If line 26 is more than line 24, enter -0 .................................................... 27 Other 28 her - from list in instructions. List type and amount Miscellaneous Deductions - ---------- ----------------------------------- -- - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ----------------------------------------------- 28 Total 29 d the amounts in the far right column for lines 4 through 28. Also, enter this amount on Form 1040, Itemized line 40 29 37,941. ........................................................................... ........... Deductions 30 If you elect to itemize deductions even though they are less than your standard deduction, check here .__ ....... ... ................. ... ---... _....................... ....... E] LHA 019501 12-21-1o For Paperwork Reduction Act Notice, see Form 1040 instructions. Schedule A (Form 1040) 2010 7 12520412 13431 44325.010 2010.03040 KAUFFROATH, TIM 4432511 Schedule A (Form 1040) 2010 Page 2 Worksheet Before you begin: ? You cannot take this deduction if the amount on Form 1040, line 38, is equal to or greater than $135,000 for Line 7 - ($260,000 if married filing jointly). New motor ? See the instructions for line 7 on page A-6. vehicle taxes 1 Enter the state or local sales or excise taxes you paid in 2010 fort purchase of any new motor vehicle(s) after February 16, 2009, and before January 1, 2010 (see instructions) .......... ._.-.-. 1 Use this worksheet 2 Enter the purchase price (before taxes) of the new motor vehicle(s) 2 to figure the amount to enter on 3 Is th amount on line 2 more than $49,500? line 7. 0 No. Enter the amount from line 1. Yes. Figure the portion of the tax from line 1 (Attach to that is attributable to the first $49,500 ...................................................... 3 Form 1040.) of the purchase price of each new motor vehicle and enter it here (see instructions). 4 Enter the amount from Form 1040, line 38 ........ ....................... . 4 5 Enter the total of any - • A ounts from Form 2555, lines 45 and 50; Form 2555-EZ, line 18; and Form 4563, line 15, _-.._,. _----.-- 5 and • Ex lusion of income from Puerto Rico 6 Add nes 4 and 5 ................ 6 7 Enter $125,000 ($250,000 if married filing jointly) ........................ 7 8 Is th amount on line 6 more than the amount on line 7? No. Enter the amount from line 3 above on Schedule A, line 7. Do not complete the rest of this worksheet. Yes. Subtract line 7 from line 6 .8 ....................................... 9 Divid the amount online 8 by $10,000. Enter the result as a decimal (rounded to at least three places). If the result is 1.000 or more, enter 1.000 10 Multi I line 3 b line 9 10 11 Ded ction for new motor vehicle taxes. Subtract line 10 from line 3. Enter the result here 019502 12-21-10 8 12520412 13431 44325.010 2010.03040 KAUFFROATH, TIM Schedule A (Form 1040) 2010 4432511 SCHEDULE B OMB No. 1545-0074 (Form 1040A or 1040) Department of the Treasury Internal Revenue Servlce 9) Interest and Ordinary Dividends Attach to Form 1040A or 1040. Illo- See instructions. 2010 Attachment Sequence No. 08 am s shown on return TIM & SHERRY KAUFFROATH our soc a security numDer 313:66:8209 Part I 1 List name of payer. If any interest is from a seller-financed mortgage and the buyer used the Amount Interest property as a personal residence, see page B-1 and list this interest first. Also, show that yer's social security number and address ? ION NATIONAL COMMUNITY BANK 660. TEGRITY BANK 27. BANK NTEGRITY t 2 2. Note. If you LTON N BANK U 74. received a Form 1099 INT ERIPRISE CERTIFICATE COMPANY 180. - , Form 1099-01D, A MERICAN ENTERPRISE INVESTMENT SERVICES INC t 1,333. or substitute t t t f s a emen rom a brokerage firm, list the firm's th name as e payer and enter the totalinterest shown on that form. - - UBTOTAL FOR LINE 1 2,476 . T AX-EXEMPT INTEREST SEE STATEMENT 6 -1,333. 2 dd the amounts on line 1 .................................. ................................... 2 1,143. 3 xcludable interest on series EE and I U.S. savings bonds issued after 1989. %ttach Form 8815 ............................................................................................... ..... ...... 3 4 .... . ubtract line 3 from line 2. Enter the result here and on Form 1040A, or Form 1040, line 8a .. 4 1,143. Note . If line 4 is over $1,500, you must complete Part III. Amount Part II 5 List name of payer Ili- Ordinary Dividends Note: If you received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm's 5 name as the payer and enter the ordinary dividends shown on that form. 6 Add the amounts on line 5. Enter the total here and on Form 1040A, or Form 1040, line 9a ... Part III You ust complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign Yes No Foreign acc nt; or c received a distribution from or were a rantor of, or a transferor to a foreign trust. Accounts 7a any time unng 2010, I you nave an Interes In or a slgna ure cr of or authority over a Inancla accoun in a orelgn and ountry, such as a bank account, securities account, or other financial account? See page B-2 for exceptions and filing X T equirements for Form TD F 90-22.1 .................................................................... rusts b It "Yes," enter the name of the foreign country 1 8 During 2010, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? 027501 to-is-to f "Yes," you may have to file Form 3520. See page B-2 ...................................................................................... X LHA For Paperwork Reduction Act Notice, see separate instructions. Schedule B (Form 1040A or 1040) 2010 9 12520412 13431 44325.010 2010.03040 KAUFFROATH, TIM 4432511 SCHEDULE C Profit or Loss From Business OMB No. 1545-0074 (Form 1040) (Sole Proprietorship) 2010 Department of the Treasury ? Partnerships, joint ventures,. etc., generally must file Form 1065 or 1065-B. nt Internal Revenue Service (ge) ? Attach to Form 1040, 1040NR, or 1041. ?See Instructions for Schedule C (Form 1040). .IN ?gcen e Noma of proprietor Social security number (SSN) TIM KAUFFRO TH 313-66-8209 A Principal business r profession, including product or service (see instructions) B Enter code from pages C-9, 10, & 11 CONSULTING ? 238340 C Business name. If n separate business name, leave blank D Employer ID number (EIN), if any 23-150930 3 9303 E Business address (i _ _ .................................. eluding suite or room no.) ? PO BOX _ 5 City, town or post o ice, state, and ZIP code MECHANICSBURG, PA 17055 F Accounting method (1) Cash (2) L_J Accrual (3) Other (specify) ? - - - - - - - - - _ _ _ -------------- G Did you "materially p articipate" in the operation of this business during 2010? If "No," see instructions for limit on losses ...... .................... ® Yes 0 No H If you started or ac uired this business during 2010, check here ... . . . . ... .. ............................................................................................ 00. .... 0 Part I Income 1 Grass receipts ors les. Caution. See instructions and check the box it •This income was eported to you on Form W-2 and the "Statutory employee" box on that form was ch ocked, or ? F-1 1 61,450. *You area membe of a qualified joint venture reporting only rental real estate income not subject o self-employment tax. Also see instructions for limit on losses. 2 Returns and allows ces ........................................................................................................................................ 2 3 Subtract line 2 from line 1 ...................................................................................................................................... 3 61,450. 4 Cost of goods sold from line 42 on page 2) ................................................ . 5 Gross profit. Subtra ct line 4 from line 3 ............................ 6 Other income, inclu ding federal and state gasoline or fuel tax credit or refund (see instructions) ............................................. 6 7 Gross income. Add lines 5 and 6 ........................................................................................................................ ? 7 58,8097 l Part 11] Expense S. Enter expenses for business use of your home only on line 30. 8 Advertising .... .... ......................... 8 18 Office expense .......................................... 18 9 Car and truck expe es 19 Pension and profit-sharing plans .................. 19 (see instructions) - - STMT.._7.,.. 9 7,665. 20 Rent or lease (see instructions): 10 Commissions and fe es .................. 10 a Vehicles, machinery, and equipment .,,,,,.._... 208 11 Contract labor b Other business property ........................... 20b (see instructions) ........................ 11 21 Repairs and maintenance ...... ..........._..._... 21 12 Depletion ........... ...................... 12 22 Supplies (not included in Part III) ............... 22 13 Depreciation and se tion 179 23 Taxes and licenses ..................... ......... 23 expense deduction not included in 24 Travel, meals, and entertainment Part III) (see instruc tions) ............... 13 a Travel ................................................... 24a 14 Employee benefit pr ograms (other b Deductible meals and than on line 19) ..... ......................... 14 entertainment (see instructions) 15 Insurance (other th n health) .... _._....- 15 1,034. 25 Utilities .............. .......................... 25 1,586. 16 Interest: 26 Wages (less employment credits) ............... 26 a Mortgage (paid to b inks, etc.) ......... 16a 27 Other expenses (from line 48 on b Other ................. ......................... 16b page 2) ............ .............. .......... ......-....... 27 2,934. 17 Legal and professio al services ........... ..................... 17 893.1 1 28 Total expenses bef ore expenses for business use of home. Add lines 8 through 27 ...................................................... ? 28 14,255. 29 Tentative profit or (I ss). Subtract line 28 from line 7 . .............. ... ........ - ........................ 29 44,570-. 30 Expenses for basin ss use of your home. Attach Form 8829 ............... 31 Net profit or (loss). Subtract line 30 from line 29. • If a profit, enter o both Form 1040, line 12, and Schedule BE, line 2, or on Form 1040NR, line 13 (if you checked the box on line 1, see in structions). Estates and trusts, enter on Form 1041, line 3. 31 44,550. • If a loss, you mu go to line 32. 32 If you have a loss, c eck the box that describes your investment in this activity (see instructions). • If you checked 32 a, enter the loss on both Form 1040, line 12, and Schedule BE, line 2, or on Form 1040NR, line 13 (if you chec ed the box on line 1, see the line 31 instructions). Estates and trusts, enter on Form 1041, 32a 0 shat isek meat line 3. 326 Some investment is not at risk. . If you checked 32 , you must attach Form 6198. Your loss may be limited. LHA For Paperwork Red ction Act Notice, see separate instructions. Schedule C (Form 1040) 2010 020001 12-27-10 10 12520412 13431 44325.010 2010.03040 KAUFFROATH, TIM 4432511 Schedule C (Form 1040) 2010 TIM KAUFFROATH 313-66-8209 Paget (see Instructions) 33 Method(s) used value closing inventory: a ? cost b F-] Lower of cost or market c ? Other (attach explanation) 34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation ............................................................................................................................ Yes No 35 Inventory at begi Ming of year. If different from last year's closing inventory, attach explanation .................................... 35 36 Purchases less c st of items withdrawn for personal use ...................................................................................... 36 37 Cost of labor. Do ot include any amounts paid to yourself ................ . . . . . . . . . . . .. ._,_....... 37 .. 38 Materials and su plies ..._...-_.. 39 Other costs 39 40 Add lines 35 thro gh 39 ................................................................................................................................ 40 2,645. 41 Inventory at end of year ................ 41 42 Cost of goods so d. Subtract line 41 from line 40. Enterthe result here and on page 1, line 4 ....................................... 42 2,645. Part R? Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562. 43 When did you pla a your vehicle in service for business purposes? (month, day, year) ? 10 / 12 / 0 9 44 Of the total numb r of miles you drove your vehicle during 2010, enter the number of miles you used your vehicle for: a Business 15 , 3 3 0 b Commuting c Other 48,020 45 Was your vehicle vailable for personal use during off-duty hours? ....................... ....................... ....... Q Yes ? No 46 Doyou(oryour s pouse) haveanothervehicleavailableforpersonaluse? ........................... _...... _........ .... _....... ..... .,...... ....... FlYes F_? No 47a Do you have evid ence to support your deduction? ........................................... ... ........ ............ . ................................. ....... ® Yes Q No b If "Yes," is the evi ence written?_.. ......................................................................................................................... ....... Yes No Part Other enses. Ust below business expenses not included on lines 8-26 or line 30. POSTAGE COMPUTER 48 Total other ex a ses. Enter here and on I 020002 12-27-10 12520412 13431 44325.010 1, line 27 11 2010.03040 KAUFFROATH, TIM 48. 2,886. e 2,934. Schedule C (Form 1040) 2010 4432511 SCHEDULE E Supplemental Income and Loss OMB No. 1545-0074 (Form 1040) (From rental real estate, royalties, partnerships, 20 O S corporations, estates, trusts, REMICs, etc.) Department of the Treasury Internal Revenue Service c sl 01o. Attach to Form 1040, 1040NR, or Form 1041. 0- See Instructions for Schedule E (Form 1040). Sequen` ccenNo.13 Name(s) shown on return Your social security number TIM & SHERRY KAUFFROATH 313-66-8209 Part I' Income-or Loss From Rental ea state an Royalties Note. If you are in the business of renting personal property, use Schedule C r C-EZ (see page E-3). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40. 1 List the type and addr ss of each rental real estate property: 2 For each rental real estate property listed Yes No A ADVERTISING on line 1, did you or your family use it 1039 WEST TRINDLE ROAD, MECHANI CSBURG , PA during the tax year for personal purposes A X B COMMERCIAL REAL ESTATE for more than the greater of: 20TH STREET, HARRISBURG, PA a 14 days or g X 1010 of the total days rented at fair C rental value? K&L LAND CATTLE LLC - ROYALTY (See page E-4) C Income: Properties Totals A B C (Add columns A, B, and C.) 3 Rents received .......................................... 3 5,064.1 29,075.1 3 34,139. 4 Rovalties received ....................................... 4 5,694.1 4 5,694. 5 Advertising. . ......... ............... ........... 5 6 Auto and travel (seep ge E-5) ..................... 6 7 Cleaning and mainten nce .......................... 7 8 Commissions 8 9 Insurance .............. ................................. 9 10 Legal and other profes sional fees ................. 10 11 Management fees .... ................................ ,. 11 12 Mortgage interest paid (see page E-5) ........ to banks, etc. ....... ................ ...- .... 12 12 13 Other interest _._.. .......... ............. .......... 13 14 Repairs 14 15 Supplies .. ......... ............................ 15 16 Taxes .................... .................................. 16 17 Utilities 17 18 Other (list) ? 18 19 Add lines 5through 1 .-...-.. __._ ................ 19 19 20 Depreciation expense or depletion (see page E-5) 20 4,919. 20 4, 919 . 21 Total expenses. Add lin es 19 and 20 ............... 21 , 919 . 22 Income or (loss) from rental real estate or royalty properties. S ubtract line 21 from line 3 (rents) or li e 4 (royalties). If the result is a (loss), ee page E-6 to find out if you must file Form 6198 .................. 22 5,064. 24,156. 5,694. 23 Deductible rental real e state loss. Caution. Your rental real estate I ss on line 22 may be limited. See page E- to find out if you must file Form 8582, al estate professionals must complete line 43 on page 2 ................. 23 24 Income. Add positive a mounts shown on line 22. D o not i nclude any losses ......... ................................. .............................. 24 34,914. 25 Losses. Add royalty to ses from line 22 and rental real estate losses from line 23. Enter total lasses here 25 ( ) 26 Total rental real estat and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts li, III, IV, and li a 40 on page 2 do not apply to you, also enter this amount on Form 1040, line 17, or Form 1040N , line 18. Otherwise, include this amount in the total on line 41 on page 2 .......................................... 26 34,914. 021491 63-21-11 LHA For Paperwork Reduction Act Notice, see instructions. Schedule E (Form 1040) 2010 12 12520412 13431 44325.010 2010.03040 KAUFFROATH, TIM 4432511 Schedule E (Form 1040) 20101 Attachment Sequence No. 13 Pace 9 Narrate) shown on return. Do .TIM & SHERR rot enter name and social sa-c^ number own on page Y KAUFFROATH our social security number 313-66-8209 Caution. The IRS compar att !l nGOm any amo es amounts reported on your tax return with amounts shown on Schedule(s) K-1. or OSS rom Partnerships and S Corporations Note. If you report a loss from an at-risk activity for which nt is not at risk, you must check column (e) on line 28 and attach Form 6198. See page E-2. 27 Are you reporting passive activity (if If you answered' ny loss not allowed in a prior year due to the at-risk or basis limitations, a prior year unallowed loss from a hat loss was not reported on Form 8582), or unreimbursed partnership expenses? ................................. ...... 0 Yes © No s," see page E-7 before completing this section. 28 (a) Name ( )Enter %q partnership' 5 for S corpoilion (C )Check if foreign partnership (d) Employer identification number (e) Check if any amount is not at risk A HERITAGE TILE & STONE, INC S - B K&L LAND & CATTLE LLC P - 5 C D Passive Income and Loss Nonpassive Income and Loss (f) Passiv (attach Form loss allowed 582 if required) (g) Passive income from Schedule K-1 (h) Nonpassive loss from Schedule K-1 (1) Section 179 expense eduction from Form 456 (j) Nonpassive income from Schedule K-1 A 5,819. B x960. C D 29a Totals b Totals ............... 24,960. 5,819. 30 Add columns (g) an d (1) of line 29a .............................................................................................. 31 Add columns (f), (1 ), and (1) of line 29b 31 ( 30,779. ) 32 Total partnership a result here and incl nd S corporation income or (loss). Combine lines 30 and 31. Enter the de in the total on line 41 below • .................................. -30,779. Rut.ff Income or Loss From Estates and Trusts 33 (a) Name (b) Employer identification number A B Passive Income and Loss Nonpassive Income and Loss (c) Passiv (attach deduction or loss allowed Form 8582 if required) (d) Passive income from Schedule K-1 (e) Deduction or loss from Schedule K-1 (f) Other income from Schedule K-1 A B 34a Totals b Totals 35 Add columns (d) a 36 Add columns (c) a 37 Total estate and In [Part N Income d (f) of line 34a ............... 35 (e) of line 34b ............ .. st income or (loss). Combine lines 35 and 36. Enter the result here and include in the total on line 41 below 37 or Loss From ea state Mortgage Investment Conduits s - est ual o er 38 (a) me (b) Employer identification number (c) Excess inclusion from Schedules Q, line 2c Taxable income (net oss) from Schedules Q, line 1b (e) Income from Schedules Q, line 3b 39 Combine columns and a only. Enter the result here and include in the total on line 41 below _ ............._........._..._ 39 umma 40 Net farm rental inco a or (loss) from Form 4835. Also, complete line 42 below ....................................... ....... 40 41 Total income or (10 s). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Form 1040, line 17, or Form 1040NR, line 18 ...... / 41 , 42 Reconciliation off reported on Form 4 (Form 1120S), box rming and fishing income. Enter your gross farming and fishing income 35, line 7; Schedule K-1 (Form 1065), box 14, code B; Schedule K-1 7, code U; and Schedule K-1 (Form 1041), line 14, code F (see page E-8) 42 43 Reconciliation for enter the net income or activities in which you al estate professionals. nyou were a real estate professional (seepage E-2), loss) you reported anywhere on Form 1040 or Form 1040NR from all rental real estate terially participated under the passive activity loss rules .._..,- _ 48 - - .- 021501 03-21-11 13 12520412 13431 44325.010 2010.03040 KAUFFROATH, TIM Schedule E (Form 1040) 2010 4432511 W Q a z CW L w Q O N Q a O cc LL W 2 0 U Z a ?a rn 0 L s N N co CL 0 0 E rn a C4 ? ? N I M N I ' X fQ rn O J co co J Y N _ N J Y H Q t Q ° E J N •N m rn Vf O J N rn R m " C O lD O? c N I O lp C1 N I O ?O O? rq N I T Y - rn N d C Q m ?on . c 'y --m fn O c N co m m K N ^m _ o m v o a ° p ° R U) z O o C7 d ° O N L N m O O ° d X ? An -0 N N w u) w a) m co E c O CD a - i E N c„ E m- m c i a o W c° (n i v a CL c j y o W N m c c c p o y o m R t m W o 0 H ° N °7 o, m E p o w ?, d o m> o w x O i° m = m m 0 ay' E C a W L m W O o o ? C N Z` m m O S C O LL m V O U U LL d H W N ns C x . y m c v° m 'm o-0 cj m o 5 y y E E > p w m m o € N to m 0 > m ? • N? N [ W d[ 43 y a i d ?0 C C) N - c a `m c c i y c(n-0 m c 9? m 0 m e m ' f c c •C o T c m E c N m ' x 0 c ? o ?a L C m o° y c a c v m • a V o o • p o Y d r _ L . o 0 O X C t N 0 G) G) a) a C CD U .? U c _ O CL cn (7 cn ? w z if co U d??? z r U) U) z z m 5 O O 0 0 10 T1 N M 0 N M O O 0 OD x w a N z W z 0 N N W Q a F- z CW L L.U N S O S F- U) rn Q a O cc W E O U Z N T er O N 0 E+ O a w w W k W J ? ? E LIU U LEs (1) Z U a a w a E+ 4 v a a al ? a 7 [p L ? N E a a N O V O O Om ',. C h Ot l0 N N m ro . N J N O J y Q N J _N iL Q c R ' E N m m J N N m N O sN 0\ lp Of _ Lr Ol tG ?" N v In N Y 0 o ° rn c z y m E E N C, L° > E m E O w° o N ° m m p Ln N 0 'o yJ Z Im C rn CO 0) p - Y ?+ cn w Z C ? ? tn N ? E y ? W J ? L ? ? Y 01 E L_ O M N ' O d O 3 O " W N y C ID 0 V d 3 = or-, m 0 U O `y V c atS N [ m m U C O N O C ? o N U z Q W > > 0 C C C y L N E v L U ' O c o fC N d M Ix w U O ' a O Q O M T o f : d r d x 5 A O f c o m c N a, o a r e z o E m o m g ' a w y 0 3 c ' o° Y w Z y m m X d ? E a m 0 E a y = co O N N 'p K O- c o. t = p % T U U N 'e c Q. is N c J L a ¢m0 in0 0 cccc°Z)mv m?o mo aaz uo Ln 0 N ' 00 0 0 N m 0 m tG W ? N I W M M F Z w z N N W a Q a x 0 0 a w w w a? LLI 7 E. V E N z rn N 0 C-I z 0 F W W a E W E- E H ?i W x I z H W z 0 W W a E w E H a z w o x r~ 0 0 L p? U c co ? I I x F- m 0 J En O J Q N y CL Q C l9 E J U1 N co m N ' J N h m C O 0 _ co- ?' I In I Ln C I T Y VI a) o Q m o c ? U • N o U N N N y O Q O ch z C O N L N O N N N N O a m m o S E i n ° G -O o H N E C U O r uj o a? m m a ' o f 0 ° y o s c w m w ? c y a v a c 0 o a W r- o C C O p j C m Q LO G w ?a (D O O 07 rn a x C W O O J H E fJ N o o o m> o a c C c = a s 2 v m o w 0 m y N to c m cao .U v q L m Q o m d s w LL - O V U v O O d n w co 9 W N = a o 0 y o 0 0 >_ c m 2 o .6 -5 a7 ? m N E LL d C N O to to V C aI i d ^ € N> "y a) U N m CD ' m E m ' r M m d L" r C W U y e N ° N O g c U5 m o V N O N U c aJ C C 3 O r o cn ~ - 'C W z f0 c a) o E co V) R o o in O 0 m o> -c C C O O c o o E c :° v o z . c 72 L y j U c°? H i a .m C N N y c O 0cc5 ?tnC3cnowziZcnUaoo?z°? corn zzm >? X00 0 N CJ O O 0 N o, 0 m i H c+i Z W z N N E 0 a W W x W W G F LU 0) to Z a w a E V? co m r-1 r N 9 W z 0 E W W a E W O E H P4 W x U z H W 0 co w a E x 4 E- H x z w o x rn? ` O a 0 U I c 7 CD 2 U 0 N O J Y N Q h J N_ Q Q C ' O N co - m d 0 N t6 C rn J N ` o d a c Y 07 c22C 4 ' O Z N < N :e -0 a, E m E N Y• G c Q) ° c LLO ° N > N m E O _ m E N c O W N C O? C g •? - 0 r y Y ° 3 ° Q C y O O Z ? X C. ?6 O N -> m II m y 7 C C N m O On) a O az -, o y : W U m .. c :; m N 'O N ID v c m N 0 c- 7 3 -0 >, (ap d > W m m E o a c LL m c Q r M m 0 W c L o m m Q m ° m w W v E>> o c -a y o 0 Z % o f a m c in c x 5 °' ° v c c c E r m in v c m a Z c d d .? • p d - a O c6 V m O ° Z N ? 7 N d m N y d U o a N Y V m C ? m := N i d ~ O 'T.. w-2 7 m U c a L ' m c c a O O -C R i? c6 m m N 0 N N O L 7 cC P O O H o Q m ? O ? O m¢? m U U ? o Cc C3 c C CL m r- r-I 0 N p NtA O O SCHEDULE SE OMB No. 1545-0074 (Form 1040 Self-Employment Tax 2010 Department of the Treasury Attachment Internal Revenue service (99) ? Attach to Form 1040 or Form 1040NR. j? See Instructions for Schedule SE (Form 1040). Sequence No. 17 Name of person with s If-employment income (as shown on Form 1040) Social security number of person with self-employment TIM KAUFFRO TH income ..- ? 313 66 8 2 0 9 Before you begin: To etermine if you must file Schedule SE, see the instructions on page SE-1. May I Use Short Note. Use this flowcha chedule SE or Must I Use Long Schedule SE? only if you must file Schedule SE. If unsure, see Who Must File Schedule SE, on page SE-1. Did you receive wages or tips in 2010? ??? No Yes Are you a minister, Science practitioner on earnings from the tax on other earning ember of a religious order, or Christian who received IRS approval not to be taxed se sources, but you owe self-employment ? Yes Was the total of your wages and tips subject to social security or railroad retirement (tier 1) tax plus your net earnings from self-employment more than $106,800? Yes No No Are you using one o earnings (see page the optional methods to figure your net E-5)? Yes Did you receive tips subject to social security or Medicare tax that you did notreport to your employer? Yes No No Did you receive chu h employee income (see page SE-1) Yes No Did you report any wages on Form 8919, Uncollected Social Yes reported on Form W 2 of $108.28 or more? Security and Medicare Tax on Wages? No You ma use Short Schedule SE below 101 You must use Long Schedule SE on page 2 Section A-Short 'S chedule SE. Caution. Read above to see if you can use Short Schedule SE. 1a Net farm profit or (l oss) from Schedule F, line 36, and farm partnerships, Schedule K-1 (Form 1065), box 1 , codeA ................... . 1a b If you received soci al security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 6b, or listed on Schedule K-1 (Form 1065), box 20, code Y ...... 1b 2 Net profit or (loss) f om Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065), box 14, code A (other than farming ; and Schedule K-1 (Form 1065-13), box 9, code J1. Ministers and members of religious orders, see page SE-1 fort ypes of income to report on this line. See page SE-3 for other income to report STMT 8 2 19,590. 3 Combine lines 1 a, b, and 2. Subtract from that total the amount on Form 1040, line 29, or Form 1040NR, line 29, and enter the re sult see page SE-3 ... ........ ... 3 19,590. 4 Multiply line 3 by 92 .35% (.9235). If less than $400, you do not owe self-employment tax; do not file this schedule unless yo have an amount on line 1 b 00- .......................................................................................... 4 18,091. Note. If line 4 is les s than $400 due to Conservation Reserve Program payments on line 1 b, see page SE-3. 5 Self-employment ax. If the amount on line 4 is: m $106,800 or les , multiply line 4 by 15.3% (.153). Enter the result here and on Form 1040, line 56 , or Form 1040NR, line 54 • More than $106, 800, multiply line 4 by 2.9% (.029). Then, add $13,243.20 to the result. Enter the total here and on Form 1040, line 56, or Form 1040NR, line 54 6 Deduction for one -half of self-employment tax. Multiply line 5 by 50% (.50). Enter the result her and on Form 1040, line 27, or Form 1040NR line 27 ...... 6 1, 3 8 4 . LHA For Paperwork eduction Act Notice, see your tax return instructions. Schedule SE (Form 1040) 2010 024501 12-29-10 12520412 13431: 18 a 44325.010 2010.03040 KAUFFROATH, TIM 4432511 8903 OMB No. 1545-1984 Form R D b 2010 Domestic Production Activities Deduction ( ev. ecem er ) Department of the Treasury 10- Attach to your tax return. j? See separate instructions. Attachment Internal Revenue Service Sequence No. 143 Name(s) as shown on ref rn Identifying number TIM & SHERRY KAUFFROATH 313-66-8209 Note. Do not co plete column (a), unless you have oil-related production activities. (a) (b) Enter amounts fo r all activities in column (b), including oil-related production activities. Oil-related production activities All activities 1 Domestic produc tion gross receipts (DPGR) ......................................................... 296,06V. 2 Allocable cost of goods sold. If you are using the small business simplified overall method, s kip lines 2 and 3 ......... 2 291,980. 3 Enter deduction and losses allocable to DPGR (see instructions) ........................... 3 9,899. 4 If you are using a small business simplified overall method, enter the amount of cost of goods old and other deductions or losses you ratably apportion to DPGR. All others skip line 4 ................... 5 Add lines 2 throu gh 4 ................................................... ... 5 3 01 8 7 9. 6 Subtract line 5 fr om line 1 ........ .............................................................. 6 -5,819. 7 Qualified product ion activities income from estates, trusts, and certain partnerships and S corporatio is (see instructions) ._... 7 8 Add lines 6 and . Estates and trusts, go to line 9, all others, skip line 9 and go to line 10 ............. ...................................................................... 8 -5,819. 9 Amount allocate to beneficiaries of the estate or trust (see instructions) ..._.,.__.- 9 10a Oil-related quali fied production activities income. Estates and trusts, subtract line 9, column (a) from line 8, column (a), all others, enter amount from line 8, column (a). If zer or less, enter -0- here ........_....... 10a b Qualified produc tion activities income. Estates and trusts, subtract line 9, column (b), from line 8, co lumn (b), all others, enter amount from line 8, column (b). If zero or less, enter -0- her e, skip lines 11 through 21, and enter -0- on line 22 _........ _--. 10b 0. 11 Income limitation (see instructions): • Individuals, es tates, and trusts. Enter your adjusted gross income figured without the domestic prod uction activities deduction ................................. ......................................................... • All others. Ent er your taxable income figured without the domestic production activities dedu ction (tax-exempt organizations, see instructions) ..................................................... 11 12 Enter the smaller of line 10b or line 11. If zero or less, enter -0- here, skip lines 13 through 21, and enter -0- on li a 22 ................... ........................ 12 13 Enter 9% of line 2 ........................................... ........ .................................................................................... 13 14a Enter the smaller of line 10a or line 12 ...................................... 14a b Reduction for oil- elated qualified production activities income. Multiply line 14a by 3% ................................ 14b 15 Subtract line 14b from line 13 15 16 Form W-2 wages see instructions) ................................................. 16 17 Form W-2 wages rom estates, trusts, and certain partnerships and S corporations (see instructions ............................................................................................... 18 Add lines 16 and 7. Estates and trusts, go to line 19, all others, skip line 19 and go to line 20 ........................ 18 19 Amount allocated to beneficiaries of the estate or trust (see instructions) 20 Estates and trust s, subtract line 19 from line 18, all others, enter amount from line 18 .................................... 20 21 Form W-2 wage li itation. Enter 50% of line 20 ................................................................ .................. 21 22 Enter the smaller f line 15 or line 21 ............................................................................................................ 22 0. 23 Domestic produc ion activities deduction from cooperatives. Enter deduction from Form 1099-PATR, box .................................................. ...................................... 23 24 Expanded affiliate d group allocation (see instructions) ................................................................... 24 25 Domestic produc tion activities deduction. Combine lines 22 through 24 and enter the result here and on Form 1040, line 3 5; Form 1120, line 25; or the applicable fine of our return ................................................... 25 0. LHA For Paperwork Reduction Act Notice, see separate instructions. Form 8903 (Rev. 12-2010) 010911 12-29-10 19 12520412 13431 44325.010 2010.03040 KAUFFROATH, TIM 44325 11 d 7 a d L p N Q1 E v c a C O M V 7 a O V a a d 3 Q i P d C a E a 2 I m - r- ? 9 Y^ C ° ' w U"E - > O O O 1 C3 a a N _ N N "= C O - m F X Q 3 W N N N C m` a ? ?w co o" C -_ Q E N c° w m N'C (x o N CC Q CL N..4 ` m Z a ) c d c - oQ Q 41 N O N C 0 ?. Q O N 7 N L 5U N O y Qy >. a N N U 0 ' V Q a? o¢ E O d d U 0 OO p a C i H O El a > U U) H El N VA RC E > H w N U H 4 ? w a w H 0 ? o W a a E a H z 0 z 0 P 0 E+ ao ° 80 SCHEDULE M (Form 1040A or 1040) Department of the Treasury Internal Revenue Service 98) Making Work Pay Credit 0, Attach to Form 1040A or 1040. 00, See separate instructions. OMB No. 1545-0074 2010 Attachment Sequence No. 166 Name(s) shown on return Your social security number TIM & SHERRY KAUFFROATH 313':66:8209 To take a making work pay credit, you must include your social security number (if filing a joint return, the number of either you or your CAUTION spouse) on your tax return. A social security number does not include an identification number issued by the IRS. Only the Social Security Administ tion issues social security numbers. CAUTION You cannot take the making work pay credit if you can be claimed as someone else's dependent or if you are a nonresident alien. Important: Check the No" box on line 1 a and see the instructions it. (a) You hav a net loss from a business, (b) You rec ived a taxable scholarship or fellowship grant not reported on a Form W-2, (c) Your wages include pay for work performed while an inmate in a penal institution, (d) You received a pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 p an, or (e) You are ling Form 2555 or 2555-EZ. 1a Do you (and yo r spouse if filing jointly) have 2010 wages of more than $6,451 ($12,903 if married filing jointly)? 0 Yes. Skip lines 1 a through 3. Enter $400 ($800 if married filing jointly) on line 4 and go to line 5. ® No. Enter your earned income (see instructions) ....................................... 1, 18,206. b Nontaxable co bat pay included on line la (see inst ctions) 1b 2 Multiply line 1 a by 6.2% (.062) 2 1,129. 3 Enter $400 ($80 if married filing jointly) ............... 4 Enter the small r of line 2 or line 3 (unless you checked "Yes" on tine 1a) 4 5 Enter the amou It from Form 1040, line 38', or Form 1040A, line 22 ..................... 5 48,4444 6 Enter $75,000 ($150,000 if married filing jointly) ............. 6 150,000. 7 Is the amount o line 5 more than the amount on line 6? ® No. Skip line B. Enter the amount from line 4 on line 9 below. E] Yes. Subtract line 6 from line 5 7 800. 8 Multiply line 7 lo2% (.02) ..................................... 8 ............................................... 9 Subtract line 8f mline4.Ifzeroorless.enter•0 . g 800. ..................................... .. ... 10 Did you (or your pouse, if filing jointly) receive an economic recovery payment in 2010? You may have received this pa ment in 2010 if you did not receive an economic recovery payment in 2009 but you received social security benefits, supplemental security income, railroad retirement benefits, or veterans disability compensation o pension benefits in November 2008, December 2008, or January 2009 (see instructions). ® No. Enter 0- on line 10 and go to line 11. Yes. Enter the total of the payments you (and your spouse, if filing jointly) received in 2010. Do not enter more than $250 $500 if married filing ( jointly) ........................................................................ 10 0 . 11 Making work p credit. Subtract line 10 from line 9. If zero or less, enter -0-. Enter the result here and on Form 1040, line 3; or Form 1040A, line 40 ................. 11 800. 'If you are filing Form 2555 2555•EZ or 4563 or you are excluding income from Puerto Rico see instructions. LHA For Paperwo k Reduction Act Notice, see separate instructions. Schedule M (Form 1040A or 1040) 2010 021511 12-16-10 21 12520412 13431 44325.010 2010.03040 KAUFFROATH, TIM 4432511 TIMOTHY L. KAUFFROATH, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA vs. NO. 2009-4169 CIVIL TERM SHERRY 1 . KAUFFROATH, : CIVIL ACTION -LAW Defendant : IN DIVORCE CERTIFICATE OF SERVICE A NOW, this 5th day of July, 2011, I, JESSICA E. LOWE, Esquire, Attorney for Plaintiff, hereby certify that I have this day sent a copy of Pre-Trial Statement of Plaintiff by depositing certified copy of the same in the United States mail, postage prepaid, at Hershey, Pennsylvania, addressed to: JoAnne Murphy, Esquire P.O. Box 547, 2 East High Street Maytown, PA 17550-0547 Office of Divorce Master Attn: E. Robert Elicker, II, Esquire 9 North Hanover Street Carlisle, PA 17013-3014 V? -ld c?. .? e; w v ?? e.? r MAX J. SMITH, JR., Esquire I.D. No. 32114 JESSICA E. LOWE, Esquire I.D. No. 208041 James, Smith, Dietterick & Connelly LLP P.O. Box 650 Hershey, PA 17033 (717) 533-3280 TIMOTHY L. KAUFFROATH, Plaintiff VS. SHERRY M. KAUFFROATH, Defendant: IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 09 - 4169 CIVIL IN DIVORCE ORDER OF COURT AND NOW, this Va day of '?jLa"t' , 2012, the economic claims raised in the proceedings having been resolved in accordance with a marital settlement agreement dated March 12, 2012, the appointment of the Master is vacated and counsel can file a praecipe transmitting the record to the Court requesting a final decree in divorce. BY THE COURT, (A. 4 Kev' A. Hess, P. J. cc: ,Max J. Smith, Jr. f.? Attorney for Plaintiff ratIM ? r JoAnne Murphy -T 9 Attorney for Defendant co 6 .; 4L MARITAL SETTLEMENT AGREEMENT BY AND BETWEEN TIMOTHY L. KAUFFROATH AND SHERRY M. KAUFFROATH Max J. Smith, Jr., Esquire JAMES, SMITH, DIETTERICK & CONNELLY LLP P.O. Box 650 Hershey, PA 17033 Telephone: (717) 533-3280 Counsel for Timothy L. Kauffroath JoAnne Murphy, Esquire P.O. Box 547 Maytown, PA 17550-0547 Telephone: (717) 587-4855 Counsel for Sherry M. Kauffroath MARITAL SETTLEMENT AGREEMENT THIS AGREEMENT, made this ' X6 day of Mctrjk , 2012, by and between TIMOTHY L. KAUFFROATH and SHERRY M. KAUFFROATH. WITNESSETH: WHEREAS, Timothy L. Kauffroath (hereinafter called "Husband") currently resides at 1039 W. Trindle Road, Mechanicsburg, Cumberland County, Pennsylvania; WHEREAS, Sherry M. Kauffroath (hereinafter called "Wife") currently resides at 580 N. Lime Street, Elizabethtown, Lancaster County, Pennsylvania; WHEREAS, the parties hereto are husband and wife, having been lawfully married on November 23, 1979; WHEREAS, the parties have lived separate and apart since on or about June 16, 2007; WHEREAS, the parties hereto are desirous of settling fully and finally their respective financial and property rights and obligations as between each other, including, without limitation, the settling of all matters between them relating to the ownership of real and personal property, the support and maintenance of one another and, in general, the settling of any and all claims and possible claims by one against the other or against their respective estates. NOW THEREFORE, in consideration of these premises, and of the mutual promises, covenants and undertakings hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the parties hereto, Husband and Wife, each intending to be legally bound hereby, covenant and agree as follows: 1. PERSONAL RIGHTS. Husband and Wife may, at all times hereafter, live separate and apart. Each shall be free from all control, restraint, interference and authority, direct or indirect, by the other. Each may reside at such place or places as he or she may select. Each may, for his or her separate use or benefit, conduct, carry on or engage in any business, occupation, profession or employment which to him or her may seem advisable. Husband and Wife shall not molest, harass, disturb or malign each other, nor compel or attempt to compel the other to cohabit or dwell by any means or in any manner whatsoever with him or her. Neither party will interfere with the use, ownership, enjoyment or disposition of any property now owned by or hereafter acquired by the other. 2. ADVICE OF COUNSEL. Each party acknowledges that he or she has had the opportunity to receive independent legal advice from counsel of his or her selection. Husband has secured legal advice from Max J. Smith, Jr., Esquire, his counsel, and Wife has secured legal advice from JoAnne Murphy, Esquire, her counsel. Each party fully understands the facts and his or her legal rights and obligations, and each party acknowledges and accepts that this Agreement is, in the circumstances, fair and equitable, and that it is being entered into freely and voluntarily, and that the execution of this Agreement is not the result of any duress or undue influence, and that it is not the result of any improper or illegal agreement or agreements. In addition, each party understands the impact of the Pennsylvania Divorce Code, whereby the court has the right and duty to determine all marital rights of the parties including divorce, alimony, alimony pendente lite, equitable distribution of all marital property or property owned or possessed individually by the other, counsel fees and costs of litigation and, fully knowing the same, each party hereto still desires to execute this Agreement acknowledging that the terms and conditions set forth herein are fair, just and equitable to each of the parties, and waives his and her respective right to have the Court of Common Pleas of Cumberland County or any other court of competent jurisdiction, make any determination or order affecting the respective parties' rights to alimony, alimony pendente lite, support and maintenance, equitable distribution, counsel fees and costs of litigation. 3. DISCLOSURE OF ASSETS. Each of the parties hereto acknowledges that he or she is aware of his or her right to seek discovery including, but not limited to, written interrogatories, motions for production of documents, the taking of oral depositions, the filing of inventories and all other means of discovery permitted under the Pennsylvania Divorce Code or the Pennsylvania Rules of Civil Procedure. Each of the parties further acknowledges that he or she has had the opportunity to discuss with counsel the concept of marital property under Pennsylvania law and each is aware of his or her right to have the real and/or personal property, estate and assets, earnings and income of the other assessed or evaluated by the courts of this Commonwealth or any other court of competent jurisdiction. The parties do hereby acknowledge that there has been full 2 and fair disclosure to the other of his or her respective income, assets and liabilities, whether such are held jointly, in the name of one party alone or in the name of one of the parties and another individual or individuals. Each party agrees that any right to further disclosure, valuation, appraisal or enumeration or statement thereof in this Agreement is hereby specifically waived, and the parties do not wish to make or append hereto any further enumeration or statement, except prior to the execution of this agreement Husband has supplied to Wife the last twelve (12) months of statements for all financial accounts that were opened after the parties' date of separation and in which Husband has a financial interest. Each party warrants that he or she is not aware of any marital asset that is not identified in this Agreement. The parties hereby acknowledge and agree that the division of assets as set forth in this Agreement is fair, reasonable and equitable, and is satisfactory to them. Each of the parties hereto further covenants and agrees for himself and herself and his or her heirs, executors, administrators or assigns, that he or she will never at any time hereafter sue the other party or his or her heirs, executors, administrators or assigns in any action of contention, direct or indirect, and allege therein that there was a denial of any rights to full disclosure, or that there was any fraud, duress, undue influence or that there was a failure to have available full, proper and independent representation by legal counsel. 4. MUTUAL CONSENT DIVORCE. It is the intention of the parties, and the parties agree, that by this Agreement they have resolved all ancillary economic issues related to the dissolution of their marriage and thus any divorce action with respect to these parties shall be limited to a claim for divorce only. Husband has filed a Divorce Complaint in the Court of Common Pleas of Cumberland County, Pennsylvania at Docket Number 2009-4169. The parties agree that, at the time of the execution of this Agreement, they will each execute an Affidavit of Consent and Waiver of Notice of Intention to Request Entry of Divorce Decree in order that counsel for Husband may finalize the divorce action in a timely fashion. Upon completion of the divorce action, counsel for Husband shall supply counsel for Wife with a copy of the Decree. 3 5. EQUITABLE DISTRIBUTION. It is the agreed intent of the parties to effectuate a distribution whereby Wife shall receive approximately 65% of the marital estate and Husband shall receive approximately 35% of same. In accordance therewith, the parties agree that Wife shall receive the total sum of $700,000.00 from the marital estate, to be distributed generally as set forth in the sub-paragraphs below. The specific listing of assets that shall be transferred into Wife's name alone is set forth in the spreadsheet attached hereto as Appendix "A" and is incorporated herein fully. A. Cash Payment. Husband shall pay Wife the sum of $279,585. (the "Cash Payment"). This sum shall be paid in accordance with the provisions set forth in Paragraph 5(B)(2) below. B. Real Estate. (1) The Marital Residence is located at 580 N. Lime Street, Elizabethtown, Pennsylvania and has an agreed-upon value of $184,000. Wife shall retain sole ownership of the Marital Residence. Husband agrees to execute the deed and any and all documents necessary to effectuate this transfer contemporaneously with signing this Agreement. (2) The parties are the owners of certain real properties located at 838 South 20th Street, Harrisburg, Pennsylvania and 1735 Berryhill Street, Harrisburg, Pennsylvania (hereinafter the "Harrisburg Properties"). Husband shall retain sole ownership of the Harrisburg Properties, which have agreed values of $370,000 and $72,000, respectively. Wife agrees to execute the deeds to the Berryhill Street Property and any and all documents necessary to effectuate the transfer of the Berryhill Street Property contemporaneously with signing this Agreement. Wife agrees that she shall hold a recorded mortgage on the South 20th Street Property until Husband is able to either sell or refinance said property. Until said refinancing or sale occurs, Husband shall pay to Wife the sum of $800.00 per month until such time as Husband secures financing. First payment is due to Wife on the first day of the month following execution of this agreement and continuing 4 monthly thereafter. Payments shall be forwarded by Husband to Wife in check form by United States Postal Service. Specifically, Husband will apply for financing on the property within ninety (90) days of the signing of this agreement and provide proof of such application to Wife by registered mail. If Husband is unable to secure financing, he will continue to actively market the property through a licensed Realtor. Husband shall provide to Wife a copy of any and all loan denials as well as a listing agreement to Wife by registered mail. If Husband is unable to sell or obtain financing on the property after twelve (12) months, the remaining balance due and owing to Wife shall be amortized for a term of ten (10) years at five (5.00%) percent interest. Husband agrees to execute any and all documents to secure Wife's interest in the property. Upon the sale or refinancing of the South 20th Street Property, Husband shall pay to Wife the sum of $279,585.00 less the amount previously paid to Wife through the monthly installments. Husband agrees to be solely responsible for the payment of any and all encumbrances, taxes, utilities, insurance and any and all other payments associated with property ownership on the Harrisburg Properties. (c) The parties hereby confirm that Husband shall retain sole ownership of the premises located at 1039 West Trindle Road, Mechanicsburg, Cumberland County, Pennsylvania, which Husband purchased in his name alone post-separation. C. Furnishings and Personalty. The parties agree that they have divided by agreement between themselves all furnishings and personalty, including all furniture, furnishings, antiques, jewelry, rugs, carpets, household appliances and equipment, except for Husband's personalty at the martial residence. Wife will gather all items and Husband will retrieve from the marital residence within thirty (30) days of execution of this agreement at a mutually agreeable time. Accordingly, Husband shall retain sole and exclusive ownership of all furnishings and personalty currently in his possession, free and clear of any right, title, claim and/or interest of Wife; and Wife shall retain all items of 5 furnishings and personal property currently in her possession as her sole and separate property free and clear of any right, title, claim and/or interest of Husband. D. Motor Vehicles. (1) Wife will retain sole ownership of the 2002 Jeep. Wife agrees to be solely responsible for payment of any and all encumbrances, and all other expenses affecting such vehicle. Wife agrees to indemnify and save harmless Husband from any loss he may sustain, including attorney fees, as a result of any default in payment by Wife. Husband agrees to execute the title to the 2002 Jeep within seven (7) days of the execution date of this Agreement. (2) The parties agree that they will cooperate in effectuating the transfer of titles and insurance to accomplish the purposes of this subparagraph. E. Retirement Benefits. (1) Ameriprise Financial Account. Husband and Wife are the joint owners of a certain Ameriprise Financial account. Husband agrees to transfer full ownership of this account to Wife. (2) Husband is the owner of a certain American Funds IRA. It is hereby specifically agreed that Husband shall transfer full ownership of this account to Wife. (3) Husband is the owner of a certain Ameritrade IRA. It is hereby specifically agreed that Husband shall transfer full ownership of this account to Wife. (4) Husband is the owner of a certain Jefferson IRA. It is hereby specifically agreed that Husband shall transfer full ownership of this account to Wife. (5) The parties are the owners of an Ameritrade Account. Husband shall transfer full ownership of this account to Wife. 6 F. Bank Accounts. Husband and Wife each shall retain the bank accounts in his/her respective names. To the extent that any accounts remain held jointly, Husband and Wife agree to sign any and all documents necessary to transfer the accounts into Wife's name only, within ten (10) days from the date of this Agreement. G. Money Market Account. (1) Flex Funds Money Market Account. The parties are the owners of a certain Flex Funds Money Market account. Husband agrees to close the account and forward the close-out balance to Wife with supporting documentation. H. Business Entities. Wife hereby forever relinquishes any and all claims or interest she may have in Husband's various business ventures, including, but not limited to, K&L Cattle and to Heritage Tile and Stone, Inc. This specifically includes, but is not limited to, all of the business assets, whether they be real, personal or mixed, lease agreements, the exclusive right to use the names "K&L Cattle" and "Heritage Stone and Tile, Inc." all contract rights, all stock, all profits, all surplus and all of the goodwill and going concern value of said businesses. Husband hereby assumes sole responsibility for any and all loans and obligations in connection with the aforesaid businesses, and shall indemnify, and save harmless Wife from any loss she may sustain, including attorney fees, as a result of any default in payment by Husband. The parties agree to execute any and all documentation necessary to effectuate the terms contained herein. It is acknowledged by Wife that prior to execution of this Agreement, that Husband has supplied the last twelve (12) months of bank statements for any and all financial accounts associated with Husband's aforementioned business entities. 1. Miscellaneous Property. As of the execution date of this Agreement, any and all property not specifically addressed herein shall be owned by the party to whom the property is titled; and if untitled, the party in possession. This Agreement shall constitute a sufficient bill of sale to evidence the transfer of any and all rights in such property from each to the other. 7 J. Property to Wife. The parties agree that Wife shall own, possess, and enjoy, free from any claim of Husband, the property awarded to her by the terms of this Agreement. Husband hereby quitclaims, assigns and conveys to Wife all such property, and waives and relinquishes any and all rights thereto, together with any insurance policies covering that property, and any escrow accounts relating to that property. This Agreement shall constitute a sufficient bill of sale to evidence the transfer of any and all rights in such property from Husband to Wife. K. Property to Husband. The parties agree that Husband shall own, possess, and enjoy, free from any claim of Wife, the property awarded to him by the terms of this Agreement. Wife hereby quitclaims, assigns and conveys to Husband all such property, and waives and relinquishes any and all rights thereto, together with any insurance policies covering that property, and any escrow accounts relating to that property. This Agreement shall constitute a sufficient bill of sale to evidence the transfer of any and all rights in such property from Wife to Husband. 6. DEBTS. A. Marital Debt. The parties have a joint Discover revolving credit account. The parties agree to close this account. B. Liability not Listed. Each party represents and warrants to the other that he or she has not incurred any debt, obligation or other liability, other than those described in this Agreement, for which the other party is or may be liable. A liability not disclosed in this Agreement will be the sole responsibility of the party who has incurred or may hereafter incur it, and such party agrees to pay it as the same shall become due, and to indemnify and hold the other party and his or her property harmless from any and all debts, obligations and liabilities. C. Indemnification of Wife. If any claim, action or proceeding is hereafter initiated seeking to hold Wife liable for the debts or obligations assumed by Husband under this Agreement, Husband will, at his sole expense, defend Wife against any such claim, action or proceeding, whether or not well-founded, and indemnify her and her 8 property against any damages or loss resulting therefrom, including, but not limited to, costs of court and actual attorneys' fees incurred by Wife in connection therewith. D. Indemnification of Husband. If any claim, action or proceeding is hereafter initiated seeking to hold Husband liable for the debts or obligations assumed by Wife under this Agreement, Wife will, at her sole expense, defend Husband against any such claim, action or proceeding, whether or not well-founded, and indemnify him and his property against any damages or loss resulting therefrom, including, but not limited to, costs of court and actual attorneys' fees incurred by Husband in connection therewith. E. Warranty as to Future Obligations. Husband and Wife each represents and warrants to the other that he or she will not at any time in the future incur or contract any debt, charge or liability for which the other, the other's legal representatives, property or estate may be responsible. From the date of execution of this Agreement, each party shall use only those credit cards and accounts for which that party is individually liable and the parties agree to cooperate in closing any remaining accounts which provide for joint liability. Each party hereby agrees to indemnify, save and hold the other and his or her property harmless from any liability, loss, cost or expense whatsoever, including actual attorneys fees, incurred in the event of breach hereof. 7. INCOME TAX. The parties have heretofore filed joint federal and state tax returns. The parties agree to file a joint income tax return for tax year 2011. The parties agree to make an appointment with tax preparer Scott Hursch by February 29, 2012 so that a draft return can be received by March 31, 2012. Any tax liability for tax year 2011 shall be apportioned based upon the parties' respective incomes. For tax years 2012 and beyond, both parties agree that, in the event any deficiency in federal, state or local income tax is proposed or any assessment of any such tax is made against either of them, each will indemnify and hold harmless the other from and against any loss or liability for any such tax deficiency or assessment and any interest, penalty and expense incurred in connection therewith. Such tax, interest, penalty or expense shall be paid solely and entirely by the individual who is finally determined to be the 9 cause of the misrepresentations or failures to disclose the nature and extent of his or her separate income on the aforesaid joint returns. 8. SUPPORT. A. ALIMONY, ALIMONY PENDENTE LITE, SPOUSAL SUPPORT. Husband and Wife hereby expressly waive, discharge and release any and all rights and claims which he or she may have now or hereafter by reason of the parties' marriage to alimony, alimony pendente lite, spousal support and/or maintenance or other like benefits resulting from the parties' status as husband and wife. The parties further release and waive any rights they may have to seek modification of the terms of this paragraph in a court of law or equity, it being understood that the foregoing constitutes a final determination for all time of either party's obligation to contribute to the support and maintenance of the other. Husband agrees to pay all arrears based upon the recommended support amount. 9. WAIVER OF INHERITANCE RIGHTS. Unless otherwise specifically provided in this Agreement, as of the execution date of this Agreement, Husband and Wife waive all rights of inheritance in the estate of the other, any right to elect to take against the will or any trust of the other or in which the other has an interest, and each of the parties waives any additional rights which said party has or may have by reason of their marriage, except the rights saved or created by the terms of this Agreement. This waiver shall be construed generally and shall include, but not be limited to, a waiver of all rights provided under the laws of Pennsylvania or any other jurisdiction. 10. WAIVER OF BENEFICIARY DESIGNATION. Unless otherwise specifically set forth in this Agreement, each party hereto specifically waives any and all beneficiary rights and any and all rights as a surviving spouse in and to any asset, benefit or like program carrying a beneficiary designation which belongs to the other party under the terms of this Agreement, including, but not limited to, pensions and retirement plans of any sort or nature, deferred compensation plans, life insurance policies, annuities, stock accounts, bank accounts, final pay checks or any other post-death distribution scheme, and each party expressly states that it is his 10 and her intention to revoke by the terms of this Agreement any beneficiary designations naming the other which are in effect as of the date of execution of this Agreement. If and in the event the other party continues to be named as beneficiary and no alternate beneficiary is otherwise designated, the beneficiary shall be deemed to be the estate of the deceased party. 11. RELEASE OF CLAIMS. A. Wife and Husband acknowledge and agree that the property dispositions provided for herein constitute an equitable distribution of their assets and liabilities pursuant to §3502 of the Divorce Code, and Wife and Husband hereby waive any right to division of their property except as provided for in this Agreement. Furthermore, except as otherwise provided for in this Agreement, each of the parties hereby specifically waives, releases, renounces and forever abandons any claim, right, title or interest whatsoever he or she may have in property transferred to the other party pursuant to this Agreement or identified in this Agreement as belonging to the other party, and each party agrees never to assert any claim to said property or proceeds thereof in the future. The parties have divided between them to their mutual satisfaction, personal effects, household goods and furnishings and all other articles of personal property which have heretofore been used in common by them, and neither party will make any claim to any such items which are now in the possession or under the control of the other. Should it become necessary, each party agrees to sign any title or documents necessary to give effect to this paragraph, upon request. However, neither party is released or discharged from any obligation under this Agreement or any instrument or document executed pursuant to this Agreement. Husband and Wife shall hereafter own and enjoy independently of any claim or right of the other, all items of personal property, tangible or intangible, acquired by him or her from the execution date of this Agreement, with full power in him or her to dispose of the same fully and effectively for all purposes. B. Each party hereby absolutely and unconditionally releases and forever discharges the other and the estate of the other for all purposes from any and all rights and obligations which either party may have or at any time hereafter has for past, present or 11 future support or maintenance, alimony pendente lite, alimony, equitable distribution, counsel fees, costs, expenses, and any other right or obligation, economic or otherwise, whether arising out of the marital relationship or otherwise, including all rights and benefits under the Pennsylvania Divorce Code of 1980, its supplements and amendments, as well as under any other law of any other jurisdiction, except and only except all rights and obligations arising under this Agreement or for the breach of any of its provisions. Neither party shall have any obligation to the other not expressly set forth herein. C. Except as otherwise set forth in this Agreement, each party hereby absolutely and unconditionally releases and forever discharges the other and his or her heirs, executors, administrators, assigns, property and estate from any and all rights, claims, demands or obligations arising out of or by virtue of the marital relationship of the parties whether now existing or hereafter arising. The above release shall be effective regardless of whether such claims arise out of any former or future acts, contracts, engagements or liabilities of the other or by way of dower, curtesy, widow's or widower's rights, family exemption or similar allowance, or under the intestate laws or the right to take against the spouse's will, or the right to treat a lifetime conveyance by the other as testamentary or all other rights of a surviving spouse to participate in a deceased spouse's estate, whether arising under the laws of Pennsylvania, any state, commonwealth or territory of the United States, or any other country. D. Except for the obligations of the parties contained in this Agreement and such rights as are expressly reserved herein, each party gives to the other by the execution of this Agreement an absolute and unconditional release and discharge from all causes of action, claims, rights or demands whatsoever in law or in equity, which either party ever had or now has against the other. 12. PRESERVATION OF RECORDS. Each party will keep and preserve for a period of four (4) years from the date of their Divorce Decree all financial records relating to the marital estate, and each party will allow the other party access to those records in the event of tax audits. 12 13. MODIFICATION. No modification, rescission, or amendment to this Agreement shall be effective unless in writing signed by each of the parties hereto. 14. SEVERABILITY. If any provision of this Agreement is held by a court of competent jurisdiction to be void, invalid or unenforceable, the remaining provisions hereof shall nevertheless survive and continue in full force and effect without being impaired or invalidated in any way. 15. BREACH. If either party hereto breaches any provision hereof, the other party shall have the right, at his or her election, to sue for damages for such breach, or seek such other remedies or relief as may be available to him or her. The non-breaching party shall be entitled to recover from the breaching party all costs, expenses and legal fees actually incurred in the enforcement of the rights of the non-breaching party. 16. WAIVER OF BREACH. The waiver by one party of any breach of this Agreement by the other party will not be deemed a waiver of any other breach or any provision of this Agreement. 17. NOTICE. Any notice to be given under this Agreement by either party to the other shall be in writing and may be accomplished by registered or certified mail, return receipt requested. Notice to Husband will be sufficient if made or addressed to the following: Timothy L. Kauffroath P.O. Box 653 Mechanicsburg, PA 17055 and to Wife, if made or addressed to the following: Sherry M. Kauffroath 580 N. Lime Street Elizabethtown, PA 17022 Notice shall be deemed to have occurred upon the date received by the recipient. Each party may change the address for notice to him or her by giving notice of that change in accordance with the provisions of this paragraph. 13 18. APPLICABLE LAW. All acts contemplated by this Agreement shall be construed and enforced under the substantive laws of the Commonwealth of Pennsylvania (without regard to the conflict of law rules applicable in Pennsylvania) in effect as of the date of execution of this Agreement. 19. DATE OF EXECUTION. The "date of execution" or "execution date" of this Agreement shall be defined as the date upon which the parties signed the Agreement if they do so on the same date, or if not on the same date, then the date on which the Agreement was signed by the last party to execute this Agreement. 20. EFFECTIVE DATE. This Agreement shall become effective and binding upon both parties on the execution date. 21. EFFECT OF RECONCILIATION, COHABITATION OR DIVORCE. This Agreement shall remain in full force and effect and shall not be abrogated even if the parties effect a reconciliation, cohabit as husband and wife or attempt to effect a reconciliation. This Agreement also shall continue in full force and effect in the event of the parties' divorce. There shall be no modification or waiver of any of the terms hereof unless the parties in writing execute a statement declaring this Agreement or any term of this Agreement to be null and void. 22. HEADINGS NOT PART OF AGREEMENT. Any headings preceding the text of the several paragraphs and subparagraphs hereof are inserted solely for convenience of reference and shall not constitute a part of this Agreement nor shall they affect its meaning, construction or effect. 23. AGREEMENT BINDING ON PARTIES AND HEIRS. This Agreement shall bind the parties hereto and their respective heirs, executors, administrators, legal representatives, assigns, and successors in any interest of the parties hereto. 24. ENTIRE AGREEMENT. Each party acknowledges that he or she has carefully read this Agreement; that he or she has discussed its provisions with an attorney of his or her own choice, and has executed it voluntarily and in reliance upon his or her own attorney; and that this instrument expresses the entire agreement between the parties concerning the subjects it purports to cover and supersedes any and all prior agreements between the parties. This 14 Agreement should be interpreted fairly and simply, and not strictly for or against either of the parties. 25. MUTUAL COOPERATION. Each parry shall, on demand, execute and deliver to the other any deeds, bills of sale, assignments, consents to change of beneficiary designations, tax returns, and other documents, and shall do or cause to be done every other act or thing that may be necessary or desirable, to effectuate the provisions and purposes of this Agreement. If either party unreasonably fails on demand to comply with these provisions, that party shall pay to the other party all attorney's fees, costs, and other expenses actually incurred as a result of such failure. 26. AGREEMENT NOT TO BE MERGED. This Agreement may be incorporated into a decree of divorce for purposes of enforcement only, but otherwise shall not be merged into said decree. The parties shall have the right to enforce this Agreement under the Divorce Code of 1980, as amended, and, in addition, shall retain any remedies in law or in equity under this Agreement as an independent contract. Such remedies in law or equity specifically are not waived or released. 15 IN WITNESS WHEREOF, the parties hereto have set their hands and seals as of the date hereinabove set forth. WITNESS TIMOTHY L. KAUFFROATH WITNESS S ERR ' M. KAUFFROATH 16 Property to Mrs. Kauffroath: 1. Lime Street Property 2. Amerprise Investments Account 3. Flex Funds, including withdrawal in May 2009 4. 2002 Jeep Grand Cherokee 5. Susquehanna joint bank account 6. Ameritrade Joint Account 7. Ameritrade IRA (Tim) 8. Jefferson IRA (Tim) 9. American Funds IRA (Tim) 10. Cash Payment from Tim to Sherry Sub-total to Sherry Property to Mr. Kauffroath: 1. Berryhill Street Property 2. 20th Street Property 3. Cash Value Tim's Life Insurance 4. Funds previously withdrawn by Husband 5. K&L Cattle 6. Heritage Stone & Tile Value Sub-total to Tim $184,000.00 $146,181.00* $ 61,194.00 $ 7,900.00 $ 1,934.00 $ 1,548.00 $ 9,997.00 $ 1,891.00 $ 5,770.00 $ 279,585.00 $ 700,000.00 $ 72,000.00 $370,000.00 $ 15,883.00 $107,730.00** $129,000.00*** Unknown $694,613.00 *Current Balance is $186,181.00 reflects post-separation deposits made by Sherry from Sherry's Union National CDs (originally part of Flex Funds), $33,000.00 from Sherry's life insurance which is marital and $4,000.00 from Sherry's SEP, which is marital as well as Tim's withdrawal in the amount of $62,000.00. **Includes withdrawal of $62,000.00 from Ameriprise Account and $45,730.00 from American Funds IRA. ***Includes royalty payments. TIMOTHY L. KAUFFROATH, Plaintiff vs. SHERRY M. KAUFFROATH, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 2009-4169 CIVIL TERM CIVIL ACTION -LAW IN DIVORCE _U x MM x r„ rr 00 AFFIDAVIT OF CONSENT AND WAIVER OF COUNSELING -v 1. A Complaint in Divorce under Section 3301(c) of the Divorce Code was filed on June 18, 2009. 2. The marriage of Plaintiff and Defendant is irretrievably broken, and ninety days have elapsed since the date of filing and service of the Complaint. 3. I consent to the entry of a Final Decree of Divorce after service of notice of intention to request entry of the decree. +tid C`_I 4. I have been advised of the availability of marriage counseling and understand that I may request that the Court require that my spouse and I participate in counseling. I further understand that the Court maintains a list of marriage counselors in the Prothonotary's Office, which list is available to me upon request. Being so advised, I do not request that the Court require that my spouse and I participate in counseling prior to a decree being handed down by the Court. I verify that the statements made in this Affidavit are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Date: March3 , 2012 TIMOTHY L. KAUF TH TIMOTHY L. KAUFFROATH, Plaintiff vs. SHERRY M. KAUFFROATH, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYL-VANIA C- c:::) -CIM _ N NO. 2009-4169 CIVIL TERM rn M z:) ;, Cnr- CIVIL ACTION - LAW co IN DIVORCE - -? f c WAIVER OF NOTICE OF INTENTION TO REQUEST` ENTRY OF A DIVORCE DECREE UNDER §3301(c) OF THE DIVORCE CODE I consent to the entry of a Final Decree of Divorce without further notice. 2. I understand that I may lose rights concerning alimony, division of property, lawyer's fees or expenses if I do not claim them before a divorce is granted. I understand that I will not be divorced until a divorce decree is entered by the Court and that a copy of the decree will be sent to me immediately after it is filed with the Prothonotary. I verify that the statements made in this Affidavit are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Date: March 23 , 2012 r r, _- L... fir`; TIMOTHY L. KAUFFROATH, Plaintiff vs. SHERRY M. KAUFFROATH, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYI&Al?A NO. 2009-4169 CIVIL TERM Lo r sv ? -?.. CIVIL ACTION - LAW f: co IN DIVORCE > r• v C71 AFFIDAVIT OF CONSENT AND WAIVER OF COUNSELING 1. A Complaint in Divorce under Section 3301(c) of the Divorce Code was filed on June 18, 2009. 2. The marriage of Plaintiff and Defendant is irretrievably broken, and ninety days have elapsed since the date of filing and service of the Complaint. 3. I consent to the entry of a Final Decree of Divorce after service of notice of intention to request entry of the decree. 4. I have been advised of the availability of marriage counseling and understand that I may request that the Court require that my spouse and I participate in counseling. I further understand that the Court maintains a list of marriage counselors in the Prothonotary's Office, which list is available to me upon request. Being so advised, I do not request that the Court -t , require that my spouse and I participate in counseling prior to a decree being handed down by the Court. I verify that the statements made in this Affidavit are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Date: March.°,/, , 2012 HERR FRO r, TIMOTHY L. KAUFFROATH, Plaintiff vs. SHERRY M. KAUFFROATH, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 2009-4169 CIVIL TERM -' CIVIL ACTION - LAWS IN DIVORCE ' ) WAIVER OF NOTICE OF INTENTION TO REQUEST ENTRY OF A DIVORCE DECREE UNDER P' §3301(c) OF THE DIVORCE CODE 1. I consent to the entry of a Final Decree of Divorce without further notice. 2. I understand that I may lose rights concerning alimony, division of property, lawyer's fees or expenses if I do not claim them before a divorce is granted. 3. I understand that I will not be divorced until a divorce decree is entered by the Court and that a copy of the decree will be sent to me immediately after it is filed with the Prothonotary. -?o I verify that the statements made in this Affidavit are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Date: March 5 2012 SHERRY I?ALJPFPdATFW- 09-41tv 9 MARITAL SETTLEMENT AGREEMENT BY AND BETWEEN TIMOTHY L. KAUFFROATH AND SHERRY M. KAUFFROATH Max J. Smith, Jr., Esquire JAMES, SMITH, DIETTERICK & CONNELLY LLP P.O. Box 650 Hershey, PA 17033 Telephone: (717) 533-3280 Counsel for Timothy L. Kauf&oath JoAnne Murphy, Esquire P.O. Box 547 Maytown, PA 17550-0547 Telephone: (717) 587-4855 Counsel for Sherry M. Kauffroath MARITAL SETTLEMENT AGREEMENT THIS AGREEMENT, made this Iatl day of 41rc. , 2012, by and between TIMOTHY L. KAUFFROATH and SHERRY M. KAUFFROATH. WITNESSETH: WHEREAS, Timothy L. Kauffroath (hereinafter called "Husband") currently resides at 1039 W. Trindle Road, Mechanicsburg, Cumberland County, Pennsylvania; WHEREAS, Sherry M. Kauffroath (hereinafter called "Wife") currently resides at 580 N. Lime Street, Elizabethtown, Lancaster County, Pennsylvania; WHEREAS, the parties hereto are husband and wife, having been lawfully married on November 23, 1979; WHEREAS, the parties have lived separate and apart since on or about June 16, 2007; WHEREAS, the parties hereto are desirous of settling fully and finally their respective financial and property rights and obligations as between each other, including, without limitation, the settling of all matters between them relating to the ownership of real and personal property, the support and maintenance of one another and, in general, the settling of any and all claims and possible claims by one against the other or against their respective estates. NOW THEREFORE, in consideration of these premises, and of the mutual promises, covenants and undertakings hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the parties hereto, Husband and Wife, each intending to be legally bound hereby, covenant and agree as follows: 1. PERSONAL RIGHTS. Husband and Wife may, at all times hereafter, live separate and apart. Each shall be free from all control, restraint, interference and authority, direct or indirect, by the other. Each may reside at such place or places as he or she may select. Each may, for his or her separate use or benefit, conduct, carry on or engage in any business, occupation, profession or employment which to him or her may seem advisable. Husband and Wife shall not molest, harass, disturb or malign each other, nor compel or attempt to compel the other to cohabit or dwell by any means or in any manner whatsoever with him or her. Neither party will interfere 1 with the use, ownership, enjoyment or disposition of any property now owned by or hereafter acquired by the other. 2. ADVICE OF COUNSEL. Each party acknowledges that he or she has had the opportunity to receive independent legal advice from counsel of his or her selection. Husband has secured legal advice from Max J. Smith, Jr., Esquire, his counsel, and Wife has secured legal advice from JoAnne Murphy, Esquire, her counsel. Each party fully understands the facts and his or her legal rights and obligations, and each party acknowledges and accepts that this Agreement is, in the circumstances, fair and equitable, and that it is being entered into freely and voluntarily, and that the execution of this Agreement is not the result of any duress or undue influence, and that it is not the result of any improper or illegal agreement or agreements. In addition, each party understands the impact of the Pennsylvania Divorce Code, whereby the court has the right and duty to determine all marital rights of the parties including divorce, alimony, alimony pendente lite, equitable distribution of all marital property or property owned or possessed individually by the other, counsel fees and costs of litigation and, fully knowing the same, each party hereto still desires to execute this Agreement acknowledging that the terms and conditions set forth herein are fair, just and equitable to each of the parties, and waives his and her respective right to have the Court of Common Pleas of Cumberland County or any other court of competent jurisdiction, make any determination or order affecting the respective parties' rights to alimony, alimony pendente lite, support and maintenance, equitable distribution, counsel fees and costs of litigation. 3. DISCLOSURE OF ASSETS. Each of the parties hereto acknowledges that he or she is aware of his or her right to seek discovery including, but not limited to, written interrogatories, motions for production of documents, the taking of oral depositions, the filing of inventories and all other means of discovery permitted under the Pennsylvania Divorce Code or the Pennsylvania Rules of Civil Procedure. Each of the parties further acknowledges that he or she has had the opportunity to discuss with counsel the concept of marital property under Pennsylvania law and each is aware of his or her right to have the real and/or personal property, estate and assets, earnings and income of the other assessed or evaluated by the courts of this Commonwealth or any other court of competent jurisdiction. The parties do hereby acknowledge that there has been full 2 and fair disclosure to the other of his or her respective income, assets and liabilities, whether such are held jointly, in the name of one party alone or in the name of one of the parties and another individual or individuals. Each party agrees that any right to further disclosure, valuation, appraisal or enumeration or statement thereof in this Agreement is hereby specifically waived, and the parties do not wish to make or append hereto any further enumeration or statement, except prior to the execution of this agreement Husband has supplied to Wife the last twelve (12) months of statements for all financial accounts that were opened after the parties' date of separation and in which Husband has a financial interest. Each party warrants that he or she is not aware of any marital asset that is not identified in this Agreement. The parties hereby acknowledge and agree that the division of assets as set forth in this Agreement is fair, reasonable and equitable, and is satisfactory to them. Each of the parties hereto further covenants and agrees for himself and herself and his or her heirs, executors, administrators or assigns, that he or she will never at any time hereafter sue the other party or his or her heirs, executors, administrators or assigns in any action of contention, direct or indirect, and allege therein that there was a denial of any rights to full disclosure, or that there was any fraud, duress, undue influence or that there was a failure to have available full, proper and independent representation by legal counsel. 4. MUTUAL CONSENT DIVORCE. It is the intention of the parties, and the parties agree, that by this Agreement they have resolved all ancillary economic issues related to the dissolution of their marriage and thus any divorce action with respect to these parties shall be limited to a claim for divorce only. Husband has filed a Divorce Complaint in the Court of Common Pleas of Cumberland County, Pennsylvania at Docket Number 2009-4169. The parties agree that, at the time of the execution of this Agreement, they will each execute an Affidavit of Consent and Waiver of Notice of Intention to Request Entry of Divorce Decree in order that counsel for Husband may finalize the divorce action in a timely fashion. Upon completion of the divorce action, counsel for Husband shall supply counsel for Wife with a copy of the Decree. 3 5. EQUITABLE DISTRIBUTION. It is the agreed intent of the parties to effectuate a distribution whereby Wife shall receive approximately 65% of the marital estate and Husband shall receive approximately 35% of same. In accordance therewith, the parties agree that Wife shall receive the total sum of $700,000.00 from the marital estate, to be distributed generally as set forth in the sub-paragraphs below. The specific listing of assets that shall be transferred into Wife's name alone is set forth in the spreadsheet attached hereto as Appendix "A" and is incorporated herein fully. A. Cash Payment. Husband shall pay Wife the sum of $279,585. (the "Cash Payment"). This sum shall be paid in accordance with the provisions set forth in Paragraph 5(B)(2) below. B. Real Estate. (1) The Marital Residence is located at 580 N. Lime Street, Elizabethtown, Pennsylvania and has an agreed-upon value of $184,000. Wife shall retain sole ownership of the Marital Residence. Husband agrees to execute the deed and any and all documents necessary to effectuate this transfer contemporaneously with signing this Agreement. (2) The parties are the owners of certain real properties located at 838 South 20th Street, Harrisburg, Pennsylvania and 1735 Berryhill Street, Harrisburg, Pennsylvania (hereinafter the "Harrisburg Properties"). Husband shall retain sole ownership of the Harrisburg Properties, which have agreed values of $370,000 and $72,000, respectively. Wife agrees to execute the deeds to the Berryhill Street Property and any and all documents necessary to effectuate the transfer of the Benyhill Street Property contemporaneously with signing this Agreement. Wife agrees that she shall hold a recorded mortgage on the South 20th Street Property until Husband is able to either sell or refinance said property. Until said refinancing or sale occurs, Husband shall pay to Wife the sum of $800.00 per month until such time as Husband secures financing. First payment is due to Wife on the first day of the month following execution of this agreement and continuing 4 monthly thereafter. Payments shall be forwarded by Husband to Wife in check form by United States Postal Service. Specifically, Husband will apply for financing on the property within ninety (90) days of the signing of this agreement and provide proof of such application to Wife by registered mail. If Husband is unable to secure financing, he will continue to actively market the property through a licensed Realtor. Husband shall provide to Wife a copy of any and all loan denials as well as a listing agreement to Wife by registered mail. If Husband is unable to sell or obtain financing on the property after twelve (12) months, the remaining balance due and owing to Wife shall be amortized for a term of ten (10) years at five (5.00%) percent interest. Husband agrees to execute any and all documents to secure Wife's interest in the property. Upon the sale or refinancing of the South 20'' Street Property, Husband shall pay to Wife the sum of $279,585.00 less the amount previously paid to Wife through the monthly installments. Husband agrees to be solely responsible for the payment of any and all encumbrances, taxes, utilities, insurance and any and all other payments associated with property ownership on the Harrisburg Properties. (c) The parties hereby confirm that Husband shall retain sole ownership of the premises located at 1039 West Trindle Road, Mechanicsburg, Cumberland County, Pennsylvania, which Husband purchased in his name alone post-separation. C. Furnishings and Personalty. The parties agree that they have divided by agreement between themselves all furnishings and personalty, including all furniture, furnishings, antiques, jewelry, rugs, carpets, household appliances and equipment, except for Husband's personalty at the martial residence. Wife will gather all items and Husband will retrieve from the marital residence within thirty (30) days of execution of this agreement at a mutually agreeable time. Accordingly, Husband shall retain sole and exclusive ownership of all furnishings and personalty currently in his possession, free and clear of any right, title, claim and/or interest of Wife; and Wife shall retain all items of 5 furnishings and personal property currently in her possession as her sole and separate property free and clear of any right, title, claim and/or interest of Husband. D. Motor Vehicles. (1) Wife will retain sole ownership of the 2002 Jeep. Wife agrees to be solely responsible for payment of any and all encumbrances, and all other expenses affecting such vehicle. Wife agrees to indemnify and save harmless Husband from any loss he may sustain, including attorney fees, as a result of any default in payment by Wife. Husband agrees to execute the title to the 2002 Jeep within seven (7) days of the execution date of this Agreement. (2) The parties agree that they will cooperate in effectuating the transfer of titles and insurance to accomplish the purposes of this subparagraph. E. Retirement Benefits. (1) Ameriprise Financial Account. Husband and Wife are the joint owners of a certain Ameriprise Financial account. Husband agrees to transfer full ownership of this account to Wife. (2) Husband is the owner of a certain American Funds IRA. It is hereby specifically agreed that Husband shall transfer full ownership of this account to Wife. (3) Husband is the owner of a certain Ameritrade IRA. It is hereby specifically agreed that Husband shall transfer full ownership of this account to Wife. (4) Husband is the owner of a certain Jefferson IRA. It is hereby specifically agreed that Husband shall transfer full ownership of this account to Wife. (5) The parties are the owners of an Ameritrade Account. Husband shall transfer full ownership of this account to Wife. 6 F. Bank Accounts. Husband and Wife each shall retain the bank accounts in his/her respective names. To the extent that any accounts remain held jointly, Husband and Wife agree to sign any and all documents necessary to transfer the accounts into Wife's name only, within ten (10) days from the date of this Agreement. G. Money Market Account. (1) Flex Funds Money Market Account. The parties are the owners of a certain Flex Funds Money Market account. Husband agrees to close the account and forward the close-out balance to Wife with supporting documentation. H. Business Entities. Wife hereby forever relinquishes any and all claims or interest she may have in Husband's various business ventures, including, but not limited to, K&L Cattle and to Heritage Tile and Stone, Inc. This specifically includes, but is not limited to, all of the business assets, whether they be real, personal or mixed, lease agreements, the exclusive right to use the names "K&L Cattle" and "Heritage Stone and Tile, Inc." all contract rights, all stock, all profits, all surplus and all of the goodwill and going concern value of said businesses. Husband hereby assumes sole responsibility for any and all loans and obligations in connection with the aforesaid businesses, and shall indemnify, and save harmless Wife from any loss she may sustain, including attorney fees, as a result of any default in payment by Husband. The parties agree to execute any and all documentation necessary to effectuate the terms contained herein. It is acknowledged by Wife that prior to execution of this Agreement, that Husband has supplied the last twelve (12) months of bank statements for any and all financial accounts associated with Husband's aforementioned business entities. 1. Miscellaneous Property. As of the execution date of this Agreement, any and all property not specifically addressed herein shall be owned by the party to whom the property is titled; and if untitled, the party in possession. This Agreement shall constitute a sufficient bill of sale to evidence the transfer of any and all rights in such property from each to the other. 7 J. Property to Wife. The parties agree that Wife shall own, possess, and enjoy, free from any claim of Husband, the property awarded to her by the terms of this Agreement. Husband hereby quitclaims, assigns and conveys to Wife all such property, and waives and relinquishes any and all rights thereto, together with any insurance policies covering that property, and any escrow accounts relating to that property. This Agreement shall constitute a sufficient bill of sale to evidence the transfer of any and all rights in such property from Husband to Wife. K. Property to Husband. The parties agree that Husband shall own, possess, and enjoy, free from any claim of Wife, the property awarded to him by the terms of this Agreement. Wife hereby quitclaims, assigns and conveys to Husband all such property, and waives and relinquishes any and all rights thereto, together with any insurance policies covering that property, and any escrow accounts relating to that property. This Agreement shall constitute a sufficient bill of sale to evidence the transfer of any and all rights in such property from Wife to Husband. 6. DEBTS. A. Marital Debt. The parties have a joint Discover revolving credit account. The parties agree to close this account. B. Liability not Listed. Each party represents and warrants to the other that he or she has not incurred any debt, obligation or other liability, other than those described in this Agreement, for which the other party is or may be liable. A liability not disclosed in this Agreement will be the sole responsibility of the party who has incurred or may hereafter incur it, and such party agrees to pay it as the same shall become due, and to indemnify and hold the other party and his or her property harmless from any and all debts, obligations and liabilities. C. Indemnification of Wife. If any claim, action or proceeding is hereafter initiated seeking to hold Wife liable for the debts or obligations assumed by Husband under this Agreement, Husband will, at his sole expense, defend Wife against any such claim, action or proceeding, whether or not well-founded, and indemnify her and her 8 property against any damages or loss resulting therefrom, including, but not limited to, costs of court and actual attorneys' fees incurred by Wife in connection therewith. D. Indemnification of Husband. If any claim, action or proceeding is hereafter initiated seeking to hold Husband liable for the debts or obligations assumed by Wife under this Agreement, Wife will, at her sole expense, defend Husband against any such claim, action or proceeding, whether or not well-founded, and indemnify him and his property against any damages or loss resulting therefrom, including, but not limited to, costs of court and actual attorneys' fees incurred by Husband in connection therewith. E. Warranty as to Future Obligations. Husband and Wife each represents and warrants to the other that he or she will not at any time in the future incur or contract any debt, charge or liability for which the other, the other's legal representatives, property or estate may be responsible. From the date of execution of this Agreement, each party shall use only those credit cards and accounts for which that party is individually liable and the parties agree to cooperate in closing any remaining accounts which provide for joint liability. Each party hereby agrees to indemnify, save and hold the other and his or her property harmless from any liability, loss, cost or expense whatsoever, including actual attorneys fees, incurred in the event of breach hereof. 7. INCOME TAX. The parties have heretofore filed joint federal and state tax returns. The parties agree to file a joint income tax return for tax year 2011. The parties agree to make an appointment with tax preparer Scott Hursch by February 29, 2012 so that a draft return can be received by March 31, 2012. Any tax liability for tax year 2011 shall be apportioned based upon the parties' respective incomes. For tax years 2012 and beyond, both parties agree that, in the event any deficiency in federal, state or local income tax is proposed or any assessment of any such tax is made against either of them, each will indemnify and hold harmless the other from and against any loss or liability for any such tax deficiency or assessment and any interest, penalty and expense incurred in connection therewith. Such tax, interest, penalty or expense shall be paid solely and entirely by the individual who is finally determined to be the 9 cause of the misrepresentations or failures to disclose the nature and extent of his or her separate income on the aforesaid joint returns. 8. SUPPORT. A. ALIMONY, ALIMONY PENDENTE LITE, SPOUSAL SUPPORT. Husband and Wife hereby expressly waive, discharge and release any and all rights and claims which he or she may have now or hereafter by reason of the parties' marriage to alimony, alimony pendente lite, spousal support and/or maintenance or other like benefits resulting from the parties' status as husband and wife. The parties further release and waive any rights they may have to seek modification of the terms of this paragraph in a court of law or equity, it being understood that the foregoing constitutes a final determination for all time of either party's obligation to contribute to the support and maintenance of the other. Husband agrees to pay all arrears based upon the recommended support amount. 9. WAIVER OF INHERITANCE RIGHTS. Unless otherwise specifically provided in this Agreement, as of the execution date of this Agreement, Husband and Wife waive all rights of inheritance in the estate of the other, any right to elect to take against the will or any trust of the other or in which the other has an interest, and each of the parties waives any additional rights which said party has or may have by reason of their marriage, except the rights saved or created by the terms of this Agreement. This waiver shall be construed generally and shall include, but not be limited to, a waiver of all rights provided under the laws of Pennsylvania or any other jurisdiction. 10. WAIVER OF BENEFICIARY DESIGNATION. Unless otherwise specifically set forth in this Agreement, each party hereto specifically waives any and all beneficiary rights and any and all rights as a surviving spouse in and to any asset, benefit or like program carrying a beneficiary designation which belongs to the other party under the terms of this Agreement, including, but not limited to, pensions and retirement plans of any sort or nature, deferred compensation plans, life insurance policies, annuities, stock accounts, bank accounts, final pay checks or any other post-death distribution scheme, and each party expressly states that it is his 10 and her intention to revoke by the terms of this Agreement any beneficiary designations naming the other which are in effect as of the date of execution of this Agreement. If and in the event the other party continues to be named as beneficiary and no alternate beneficiary is otherwise designated, the beneficiary shall be deemed to be the estate of the deceased party. 11. RELEASE OF CLAIMS. A. Wife and Husband acknowledge and agree that the property dispositions provided for herein constitute an equitable distribution of their assets and liabilities pursuant to §3502 of the Divorce Code, and Wife and Husband hereby waive any right to division of their property except as provided for in this Agreement. Furthermore, except as otherwise provided for in this Agreement, each of the parties hereby specifically waives, releases, renounces and forever abandons any claim, right, title or interest whatsoever he or she may have in property transferred to the other party pursuant to this Agreement or identified in this Agreement as belonging to the other party, and each party agrees never to assert any claim to said property or proceeds thereof in the future. The parties have divided between them to their mutual satisfaction, personal effects, household goods and furnishings and all other articles of personal property which have heretofore been used in common by them, and neither party will make any claim to any such items which are now in the possession or under the control of the other. Should it become necessary, each party agrees to sign any title or documents necessary to give effect to this paragraph, upon request. However, neither party is released or discharged from any obligation under this Agreement or any instrument or document executed pursuant to this Agreement. Husband and Wife shall hereafter own and enjoy independently of any claim or right of the other, all items of personal property, tangible or intangible, acquired by him or her from the execution date of this Agreement, with full power in him or her to dispose of the same fully and effectively for all purposes. B. Each party hereby absolutely and unconditionally releases and forever discharges the other and the estate of the other for all purposes from any and all rights and obligations which either party may have or at any time hereafter has for past, present or 11 future support or maintenance, alimony pendente lite, alimony, equitable distribution, counsel fees, costs, expenses, and any other right or obligation, economic or otherwise, whether arising out of the marital relationship or otherwise, including all rights and benefits under the Pennsylvania Divorce Code of 1980, its supplements and amendments, as well as under any other law of any other jurisdiction, except and only except all rights and obligations arising under this Agreement or for the breach of any of its provisions. Neither parry shall have any obligation to the other not expressly set forth herein. C. Except as otherwise set forth in this Agreement, each party hereby absolutely and unconditionally releases and forever discharges the other and his or her heirs, executors, administrators, assigns, property and estate from any and all rights, claims, demands or obligations arising out of or by virtue of the marital relationship of the parties whether now existing or hereafter arising. The above release shall be effective regardless of whether such claims arise out of any former or future acts, contracts, engagements or liabilities of the other or by way of dower, curtesy, widow's or widower's rights, family exemption or similar allowance, or under the intestate laws or the right to take against the spouse's will, or the right to treat a lifetime conveyance by the other as testamentary or all other rights of a surviving spouse to participate in a deceased spouse's estate, whether arising under the laws of Pennsylvania, any state, commonwealth or territory of the United States, or any other country. D. Except for the obligations of the parties contained in this Agreement and such rights as are expressly reserved herein, each party gives to the other by the execution of this Agreement an absolute and unconditional release and discharge from all causes of action, claims, rights or demands whatsoever in law or in equity, which either party ever had or now has against the other. 12. PRESERVATION OF RECORDS. Each party will keep and preserve for a period of four (4) years from the date of their Divorce Decree all financial records relating to the marital estate, and each party will allow the other party access to those records in the event of tax audits. 12 13. MODIFICATION. No modification, rescission, or amendment to this Agreement shall be effective unless in writing signed by each of the parties hereto. 14. SEVERABILITY. If any provision of this Agreement is held by a court of competent jurisdiction to be void, invalid or unenforceable, the remaining provisions hereof shall nevertheless survive and continue in full force and effect without being impaired or invalidated in any way. 15. BREACH. If either party hereto breaches any provision hereof, the other party shall have the right, at his or her election, to sue for damages for such breach, or seek such other remedies or relief as may be available to him or her. The non-breaching party shall be entitled to recover from the breaching parry all costs, expenses and legal fees actually incurred in the enforcement of the rights of the non-breaching party. 16. WAIVER OF BREACH. The waiver by one party of any breach of this Agreement by the other party will not be deemed a waiver of any other breach or any provision of this Agreement. 17. NOTICE. Any notice to be given under this Agreement by either party to the other shall be in writing and may be accomplished by registered or certified mail, return receipt requested. Notice to Husband will be sufficient if made or addressed to the following: Timothy L. Kauffroath P.O. Box 653 Mechanicsburg, PA 17055 and to Wife, if made or addressed to the following: Sherry M. Kauffroath 580 N. Lime Street Elizabethtown, PA 17022 Notice shall be deemed to have occurred upon the date received by the recipient. Each party may change the address for notice to him or her by giving notice of that change in accordance with the provisions of this paragraph. 13 18. APPLICABLE LAW. All acts contemplated by this Agreement shall be construed and enforced under the substantive laws of the Commonwealth of Pennsylvania (without regard to the conflict of law rules applicable in Pennsylvania) in effect as of the date of execution of this Agreement. 19. DATE OF EXECUTION. The "date of execution" or "execution date" of this Agreement shall be defined as the date upon which the parties signed the Agreement if they do so on. the same date, or if not on the same date, then the date on which the Agreement was signed by the last party to execute this Agreement. 20. EFFECTIVE DATE. This Agreement shall become effective and binding upon both parties on the execution date. 21. EFFECT OF RECONCILIATION, COHABITATION OR DIVORCE. This Agreement shall remain in full force and effect and shall not be abrogated even if the parties effect a reconciliation, cohabit as husband and wife or attempt to effect a reconciliation. This Agreement also shall continue in full force and effect in the event of the parties' divorce. There shall be no modification or waiver of any of the terms hereof unless the parties in writing execute a statement declaring this Agreement or any term of this Agreement to be null and void. 22. HEADINGS NOT PART OF AGREEMENT. Any headings preceding the text of the several paragraphs and subparagraphs hereof are inserted solely for convenience of reference and shall not constitute a part of this Agreement nor shall they affect its meaning, construction or effect. 23. AGREEMENT BINDING ON PARTIES AND HEIRS. This Agreement shall bind the parties hereto and their respective heirs, executors, administrators, legal representatives, assigns, and successors in any interest of the parties hereto. 24. ENTIRE AGREEMENT. Each parry acknowledges that he or she has carefully read this Agreement; that he or she has discussed its provisions with an attorney of his or her own choice, and has executed it voluntarily and in reliance upon his or her own attorney; and that this instrument expresses the entire agreement between the parties concerning the subjects it purports to cover and supersedes any and all prior agreements between the parties. This 14 Agreement should be interpreted fairly and simply, and not strictly for or against either of the parties. 25. MUTUAL COOPERATION. Each party shall, on demand, execute and deliver to the other any deeds, bills of sale, assignments, consents to change of beneficiary designations, tax returns, and other documents, and shall do or cause to be done every other act or thing that may be necessary or desirable, to effectuate the provisions and purposes of this Agreement. If either party unreasonably fails on demand to comply with these provisions, that party shall pay to the other party all attorney's fees, costs, and other expenses actually incurred as a result of such failure. 26. AGREEMENT NOT TO BE MERGED. This Agreement may be incorporated into a decree of divorce for purposes of enforcement only, but otherwise shall not be merged into said decree. The parties shall have the right to enforce this Agreement under the Divorce Code of, 1980, as amended, and, in addition, shall retain any remedies in law or in equity under this Agreement as an independent contract. Such remedies in law or equity specifically are not waived or released. 15 IN WITNESS WHEREOF, the parties hereto have set their hands and seals as of the date hereinabove set forth. WITNESS TIMOTHY L. KAUFFROATH A WITNESS S RR M. KAUFFROATH 16 K Property to Mrs. Kauffroath: 1. Lime Street Property $184,000.00 2. Amerprise Investments Account $146,181.00* 3. Flex Funds, including withdrawal in May 2009 $ 61,194.00 4. 2002 Jeep Grand Cherokee $ 7,900.00 5. Susquehanna joint bank account $ 1,934.00 6. Ameritrade Joint Account $ 1,548.00 7. Ameritrade IRA (Tim) $ 9,997.00 8. Jefferson IRA (Tim) $ 1,891.00 9. American Funds IRA (Tim) $ 5,770.00 10 . Cash Payment from Tim to Sherry $ 279.585.00 Sub-total to Sherry $ 700,000.00 Property to Mr. Kauffroath: 1. Berryhill Street Property $ 72,000.00 2. 2Wh Street Property $370,000.00 3. Cash Value Tim's Life Insurance $ 15,883.00 4. Funds previously withdrawn by Husband $107,730.00** 5. K&L Cattle $129,000.00*** 6. Heritage Stone & Tile Value Unknown Sub-total to Tim $694,613.00 *Current Balance is $186,181.00 reflects post-separation deposits made by Sherry from Sherry's Union National CDs (originally part of Flex Funds), $33,000.00 from Sherry's life insurance which is marital and $4,000.00 from Sherry's SEP, which is marital as well as Tim's withdrawal in the amount of $62,000.00. **Includes withdrawal of $62,000.00 from Ameriprise Account and $45,730.00 from American Funds IRA. ***Includes royalty payments. TIMOTHY L. KAUFFROATH, Plaintiff vs. SHERRY M. KAUFFROATH, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA., NO. 2009-4169 CIVIL TERM - -C =M CIVIL ACTION - LAW ' ?o IN DIVORCE -a CD . PRAECIPE TO TRANSMIT RECORD c? To the Prothonotary: Transmit the record, together with the following information, to the Court for entry of a divorce decree: Ground for divorce: irretrievable breakdown under Section (X) 3301 (c) ( ) 3301 (d) of the Divorce Code. (Check applicable section). Date and manner of service of the complaint: By certified mail on June 20, 2009. Complete either paragraph (a) or (b). (a) Date of execution of the affidavit of consent required by Section 3301 (c) of the Divorce Code: by Plaintiff March 23, 2012 ; by Defendant March 12, 2012 (b)(1) Date of execution of the Plaintiff's affidavit required by Section 3301 (d) of the Divorce Code: Defendant: ; (2) date of service of the Plaintiff's affidavit upon the 4. Related claims pending: None Attorney for (X) Plain ( ) Defendant IN THE COURT OF COMMON PLEAS OF TIMOTHY L. KAUFFROATH CUMBERLAND COUNTY, PENNSYLVANIA V. SHERRY M. KAUFFROATH NO. 2009-4169 CIVIL TERM DIVORCE DECREE AND NOW, ?nn7 y r 2012 , it is ordered and decreed that TIMOTHY L. KAUFFROATH , plaintiff, and SHERRY M. KAUFFROATH defendant, are divorced from the bonds of matrimony. Any existing spousal support order shall hereafter be deemed an order for alimony pendente lite if any economic claims remain pending. The court retains jurisdiction of any claims raised by the parties to this action for which a final order has not yet been entered. Those claims are as follows: (If no claims remain indicate "None.") Marital Settlement Agreement dated 12 March 2012, is hereby incorporated into the Final Divorce Decree. By the Court, 710 ??jt