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HomeMy WebLinkAbout04-29-10 (2)15056041192 REV-1500 Ex {06-05) OFFICIAL USE ONLY PA Department of Revenue County Cotle Year File Num ber Bureau of Individual Taxes INHERITANCE TAX RETURN Po Boxzaoeol 2 1 0 9 0 2 2 4 Harrisburg, PA 17128-0801 RESIDENT DECEDENT ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death Date of Binh 184 12 2380 02 06 2009 04 18 1922 Decedent's Last Name Suffix Decedent's Frst Name MI Yorlets Mrs Dorothy S (If Applicable) Enter Surviving Spouse's information Below Spouse's Last Name Suffix Spouse's Frst Nama MI Spouse's Social Security Number THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS FILL IN APPROPRIATE OVALS BELOW ~ 1. Original Return p 2. Supplemental Retum O 3. Remainder Retum (date of death prior to 12-13-82) O 4. Limited Estate O 4a Future Interest Compromise (date of O 5. Federal Estate Tax Retum Required death after 12-12-82) ~ 6. Decedern Died Testate ~ 7. Decedent Maintained a Living Trust 8. Total Number of Safe Deposit Boxes (Attach Copy of Will) (Attach Copy of Trust) p 9. Litigation Proceeds Received O 1l). Spousal Poverty Credit (date of death O 11. Election to tax under Sec. 9113(A) between 12-31-91 and 1-1-95) (Attach Sch. O) CORRESPONDENT - Thls sectlon must be completed. All Correspondence and ConNdentlal Tax Information Should be Directed to: Name Daytime Telephone Number Elyse E • Rogers, Esquire 717 67~ 5801 .~°.. „~ '? Fnn Name (If Applicable) -+- REGISLE'p WILLS US'Q~1NLY G-r r ~ ? c" ~: Keefer Wood Allen & Rahal, LLP '~ ~ ~ ``_ ~ _ rn ~ T N ~ r', .T l r I '--' Frst line of address cf? t t- - ;~ 635 N• 12th Street, Suite 400 .3 c~U~~ ~ -~ -t- ~ Second line of address ~ ' •• ~y s ri G.3 .. T City or Post Office Lemoyne State ZIP Code PA 17043 DATE FILED Correspondern's a-mail address: erogers@keefefWOOd.com Under penalties of perjury,) declare that) have examine this return, including co anyinp schedules and statements, and to the beat of my knowletlpe and belief, it is true, correct and complete. Declaration of the prep~r otherthan pers~al a asentat~e is based on all information of which preparer has any knowledge. SIGNATURE OF PFRRON RESPONSIBLE FOR FILI ETUR~TJ-~T DATE i~ r .ate. , w.,~. v. v, wy• 635 North 12th treet, Suite 4C 15056041192 PA 17043 iSE USE ORIGINAL FORM ONLY Side 1 15056041192 J a~ Rev-1500 EX 15D56O42193 Decedent's Name: Dorothy S. Yorlets Mrs RECAPITULATION 1. Real estate (Schedule A) . • • . • • • • • • ............................... 1. 2. Stocks and Bonds (Schedule B)•••••.•••••••••••••••••••••••••••••• 2. 3. Gosely Held Corporation, Partnership or Sole-Proprietorship (Schedule C) ...... 3. 4. Mortgages & Notes Receivable (Schedule D) • • • • • • • . • • • • • • • • • • • • • • • • • • • 4. 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) . • • • ..... 5. e. Jointly Owned Property (Schedule ~ O Separate Billing Requested .. • ... 6. 7. Irner-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G) O Separate Billing Requested ...... 7, 8. Total Gross Assets (total Lines 1-7) ................................ 8. 9. Funeral 6cpenses & Administrazive Costs (Schedule H) • . • • • • . • • . • ......... 9. 10. Debts of Decedern, Mortgage Liabilities, & Liens (Schedule I) ............... 10. 11. Total Deductions (total Lines 9 & 10) ................................ 11. 12. Net Value of Estate (Line 8 minus Line 11) . ........................... . 12. 13. Charitable and Governmental BequestsJSec 9113 Trusts for which an election to tax has not been made (Schedule J) • • • ................... . 13. 14. Net Value Subject t0 Tax (Line 12 minus Line 13) ...................... . 14. TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable az the spousal tax rate, or transfers under Sec. x118 (a)(1.2) X .00 D • D D 15. 16. Amount of Line 14 taxable az lineal rate x .045 1, 4 31, 0 5 3.9 3 1 s. 17. Amourn of Line 14 taxable at siblingrateX.12 2,DDD•DD 17, 18. Amourn of Line 14 taxable D D D • az collateral rate X .15 18. 19. TAX DUE .................................................... 19. 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT Decedent's Social Security Number 184 12 2380 0.00 18,720.13 0.00 0.00 23,761.61 a•DD 1,773,129.54 1,815,611.28 35,984.84 345,572.51 381,557.35 1,434,D53.93 1,ooo•Do 1,433,053.93 D•Do 64,397.43 240.00 0.OD 64,637.43 O Side 2 15056042193 15056042193 Rev-1500 EX Page 3 Decedent's Complete Address: Fle Number 21 09 0224 DECEDENTS NAME Doroth S. Yorlets Mrs DECEDENTS SOCIAL SECURITY NUMBER 184-12-2380 STREET ADDRESS 100 Mt. Allen Drive CITY Mechanicsburg STATE PA ZIP 17055 Tax Payments and Credits: 1. Tax Due (Page 2 Line 19) 2. Credits/Paymerns A Spousal Poverty Credit B. Prior Payments C. Discount 0.00 0.00 0.00 Total Credits (A + B + C) 3. Irnerest/Penalty if applicable D. I merest 0.00 E. Penalty 0.00 Total Interest/Penalty (D + E) 4. If Llne 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. FIII In oval on Page 2, Llne 20 to request a refund. 5. If Line 1 + Une 3 is greazer than Line 2, erner the difference. This is the TAX DUE. A. Erner the irnerest on the tax due. B. Erner the total of Line 5 + BA. This is the BALANCE DUE. (1) 64,637.43 (2) 0.00 (3) 0.00 (4) (s) 64,637.43 (sA) 0.00 (s6) 64,637.43 Make Check Payable to: REGISTER OF WILLS, AGENT -- . ~ ~3y ~ .. ~. ~ t, .: , _. ' '"" .,~~ , , .. . *~~i+;-. i`, ,~+~;$"v `~~3 _~Y'~~ ~~'~`F ..i ~ ~ ~~" .:i+t, x., ~ ~; %'. <. f :'~6 ~'~„f t~ a <..,a"~'" x .~ x"d"~d ,'~ ..t"S~d'~d~ PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedern make a transfer and: Yes No a retain the use or income of the property transferred; ,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ..... ^ b. retain the right to designate who shall use the property transferred or Rs income; . • • ..... ..... ® ^ c. retain a reversionary interest; or ........................................... ..... ^ d. receive the promise for life of either payments, benefits or care? . • • ................ ..... ^ 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death wfthout receiving adequate conslderazlon? ............................... ..... ^ 3. Did decedern own an "intrust fob' or payable upon death bank account or security az his or her deazh? ^ 4. Did decedent own an Individual Retiremern Account, annuity, or other ran-probate property which contains a beneficiary designation? • • ................................... ..... ® ^ IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES„Syy, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is three (3) percent [72 P.S. Sect. 9116(a)(1.1)(i)]. For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is zero (O) peroern [72 P.S. Sect. 9118(a)(1.1)(II)]. The statue does not exempt a transfer to a surviving spouse from tax, and the statutory requiremerns for disclosure of assets and filing a tax return are still applicable even H the surviving spouse is the only beneficiary. For dates of death on or after July 1, 2000: The tex rate imposed on the net value of transfers from a deceased child twenty-one years of age or younger az death to or for the use of a nazural parent, an adoptive parent, or a stepparent of the child is zero (0) peroern [72 P.S. Sect. 9116(a)(1.2)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is four and one-half (4.5) percent, except as rested in 72 P.S. Sect. 9116(1.2) [72 P.S. Sect. 9116(a)(1)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is twelve (12) percent [72 P.S. Sect. 9116(a)(1.3)]. A sibling is defined, under Section 9102, as an individual who has at least one parent In common with the decedent, whether by blood or adoption. REV -1503 EX+(8-BB) SCHEDULE B COMMONWEALTH OF PENNSYLVANIA STOCKS & BONDS INHERITANCE TAX RETURN R ESID ENT DECED ENT ESTATE OF FILE NUMBER Dorothy S. Yorlets Mrs 21 09 0224 (If more space is needed, insert additional sheets of the same size) REV-isoa EX+(e-eal COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESID ENTDECEDENT SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY ESTATE OF FILE NUMBER Dorothy S. Yorlets Mrs 21 09 0224 Include the proceeds of litigation and the date the proceeds were received by the estate. All property jointly-owned with right of suMvorship must be disclosed on Scheduel F. (If more space is needed, insert additional sheets of the same size) REV-1510 EX+(e-88) COMMONWEALTH OF PENNSYLVANIA INHERITANCETAX RETURN RESID ENT DECED ENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY ESTATE OF FILE NUMBER Dorothy S. Yorlets Mrs 21 09 0224 This schedule must he completed and filed if the answer to any of q uestions 1 through 4 on the reverse side of tha REV-1500 COVE R SH E ET is ves. ITEM NUM DESCRIPTION OF PROPERTY INCLUDENAMEOFTRANSFEREE,RELATIONSHIPTODECEDENT& DATEOFTRANSFER.ATTACHCOPYOFDEEOFORREALESTATE DATE OF DEATH VALUE OF ASSET kOFDEC'S INTEREST EXCLUSION (IFAPPLICABLE) TAXABLE VALUE 1 Yorlets Trust C, Trust created by Decedent's 280,697.54 100 280,697.54 late husband, John C. Yorlets. No election to pay inheritance tax was made for this trust at the time of his death. A copy of the trust agreement is attached. The assets in this trust are being distributed to Decedent's children, Nancy Livingston and Donald Yorlets, in equal shares. 2 29.6% Interest in Yorlets Farm, 401 Mulberry 1,492,432.00 100 0.00 1,492,432.00 Drive, Mechanicsburg, PA Total appraised value $5,042,000 The above item is in the name of the Dorothy S. Yorlets Revocable Trust TOTAL (Also enter on line 7, Recapitulation) I 1,773,129.54 (If more space is needed, insert additional sheets of the same size) REV-1517 EX+(10-08) SCHEDULE H COMMONW EALTH OF PENNSYLVANIA FUNERAL EXPENSES & INHERITANCETAX RETURN ADMINISTRATIVE COSTS RESIDENT DECEDENT ESTATE OF FILE NUMBER Dorothy S. Yorlets Mrs 21 09 0224 Debts of decedent must be reported on Schedule I. ITEM NUMBER DESCRIPTION AMOUNT A. FUNERAL EXPENSES: 1 Gingrich Memorials 130.00 2 Nancy Livingston, reimbursement for payment of funeral expenses 228.12 (clothes/I u ncheon/flowers) 3 Myers Funeral Home 12,750.00 B. ADMINISTRATIVE COSTS: 1. Personal Represernative's Commissions Name of Personal Represernative(s) Street Address atY State _ Zip Year(s) Commission Paid: 2. Attorney Fees 20,000.00 3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) palmarn Street Address city State Zlp Relationship of paimarn to Decedent a. Probate Fees 216.50 5. Accournarn's Fees 6. Tax Return Preparel's Fees See schedule attached 2,660.22 TOTAL (Also erner on line 9, Recapitulation) 35,984.84 (If more space is needed, insert additional sheets of tha same size) Estate of: Dorothy S. Yorlets Mrs Schedule H, Part B -Administrative Costs Miscellaneous Expenses Page 2 21 09 0224 Item Number Descriptlon Amount 7 The Sentinel, legal advertising 102.58 8 Cumberland Law Journal, legal advertising 75.00 9 Aon Risk Services (29.6%) 24,72 10 Debra Basehore Wiest, tax collector (29.6%) 641.90 11 Goodville Mutual Casualty Co, insurance (29.6%) 414.99 12 Diversified Appraisal 1,200.00 13 Keefer Wood Allen & Rahal, LLP, out of pocket expenses 201.03 TOTAL. (Carry forward to main schedule) ...... 2,660.22 REV -1512 EX. (12-03) COMMONWEALTH OF PENNSYLVANIA INH ERITANCE TAX RETURN RESIDENTDECEDENT SCHEDULE I DEBTS OF DECEDENT, MORTGAGE LIABILITIES, & LIENS ESTATE OF FILE NUMBER Dorothy S. Yortets Mrs 21 09 0224 Report debts Incurred by decedent prior to death which remained unpaid as of date of death, Including unrelmburssd medipl expenses. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1 Funds due Yortets B QTIP 64,467.00 2 ~ Funds due Yortets Trust C ~ 280,697.54 3 I Holy Spirit Hospital I 50.00 4 Capital Area Halth Association 20.00 5 ~ Cardin 8~ Miller Physical Therapy PC ~ 110.00 6 ~ Verizon ~ 40.97 7 I Orphopedic Institute of PA I 5.00 8 Alert Pharmacy 182.00 TOTAL (Also erner on line to, Recapitulation) 1 345,572.51 (If more space is needed, insert additional sheets of the same size) REV -1513 EX+18-00) SCHEDULE J COMMONWEALTH OF PENNSYLVANIA BENEFICIARIES INHERRANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Dorothy S. Yorlets Mrs 21 09 0224 RELATIONSHIP TO DECEDENT AMOUNT OR SHARE NUMBE NAME AND ADDRESS OF PERSONS RECEIVING PROPERTY Do Not List Tru s OF ESTATE r TAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under Sec. 9116(a)(1.2)] See schedule attached ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15TH ROUG H 19, AS APPROPRIATE, ON REV-1500 COVER SH EET ri NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SEC. 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS 1 Trinity Lutheran Church 1 000.00 ' 132 Main Street Mechanicsburg, PA 17055 TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET 1,000.00 (If more space is needed, insert additional sheets of the same size) Page 2 Estate of: Dorothy S. Yorlets Mrs 21 09 0224 Schedule J, Part I -Taxable Distributions Amount or Share Num. Name and Address of Person(s) Receiving Property Relationship to Decedent of Estate Patricia H. Souder Sister-in-law 1,000.00 107 Messiah College Mechanicsburg, PA 17055 Rozella McLane Sister 1,000.00 c/o Peggy Souder 2215 Boxwood Lane Mechanicsburg, PA 17055 Colleen Yorlets Granddaughter 10,000.00 P.O. Box 205 New Oxford, PA 17350 Kate Livingston Granddaughter 10,000.00 5460 Davidsburg Road Dover, PA 17315 Rachel Yorlets Granddaughter 10,000.00 P.O. Box 205 New Oxford, PA 17350 Kyle Livingston Grandson 10,000.00 5460 Davidsburg Road Dover, PA 17315 Nancy Livingston Trust Daughter 555,178.20 Nancy Livingston, Trustee 5460 Davidsburg Road Dover, PA 17315 Donald L. Yorlets Trust Son 555,178.20 Donald L. Yorlets, Trustee P.O. Box 205 New Oxford, PA 17350 Nancy Livingston Daughter 140,348.76 5460 Davidsburg Road Dover, PA 17315 Donald L. Yorlets Son 140,348.77 P.O. Box 205 New Oxford, PA 17350 Estate of Dorothy S. Yorlets Date of Death: February 6, 2009 Pennsylvania Inheritance Tax Return Shares of Beneficiaries Net Value Subject to Tax $ 1,433,053.93 Comprised of: Yorlets Trust C (John C. Yorlets Trust) $ 280,697.54 Dorothy S. Yorlets Revocable Trust $ 1,152,356.39 "Preresiduary" gifts payable from Dorothy S. Yorlets Revocable Trust* $ 42,000.00 Balance, Dorothy S. Yorlets Trust $ 1,110,356.39 One-Half: Donald L. Yorlets Trust $ 555,178.20 One-Half: Nancy Livingston Trust $ 555,178.20 Disposition, John C. Yorlets Trust C One-half: Donald L. Yorlets $ 140,348.77 One-half: Nancy Livingston $ 140,348.76 *Note: Glenn L. Souder predeceased Mrs. Yorlets Attached hereto is a request for extension to pay Pennsylvania inheritance tax which was submitted to the Pennsylvania Department of Revenue on November 5, 2009. As of the date of the filing of this return, the Department of Revenue has failed to respond to this request for extension. ROBERT L. WELDON EUGENE E. PEPINSKY, JR. JOHN H. ENOS ~ GARY E. FRENCH BRADFORD DORRANCE JEFFREY S. STOKES ROBERT R. CHURCH STEPHEN L. GROSE R. SCOTT SHEARER ELYSE E. ROGERS CRAIG A. LONGYEAR JOHN A. FEICHTEL STEPHANIE KLEINFELTER DONALD M. LEWIS ]Q ERIC R. AUGUSTINE TODD F. TRUNTZ LAUREN S. WELDON KEEPER WOOD ALLEN &RAHAL, LLP ATTORNEYS AT LAW ESTABLISHED IN 1878 635 NORTH 12T" STREET, SUITE 400 OF COUNSEL: LEMOYNE, PA 17043 N. DAVID RAHAL SAMUEL C. HARRY PHONE 717-612-5800 CHARLES W. RUBENDALL II FAX 717-612-5805 _ HARRISBURG OFFICE: EIN NO. 2 3-071613 5 210 WALNUT STREET WwW.k8Bf8fWOOd.COm HARRISBURG. PA 17101 November 5, 2009 PHONE 717-255-8000 J. Paul Dibert Pennsylvania Department of Revenue Inheritance Tax Division 5t'' Floor, Strawberry Square Harrisburg, PA 17128 717-612-5801 erogers ~+ keeferwood.com Re: Estate of Dorothy S. Yorlets Date of Death: February 6, 2009 Request for Extension of Time for Payment of Inheritance Tax Pursuant to Section 9150 Dear Paul: 'The undersigned is counsel for Donald L. Yorlets and Nancy Livingston, Co- Executors of the Estate of Dorothy S. Yorlets. Mrs. Yorlets, a long time resident of Messiah Village, passed away on February 6, 2009. At the time of Mrs. Yorlets' death, her liquid assets consisted of the following: 784.582 shares Vanguard Wellington Fund -fair market value $18,720.13 Susquehanna Bank checking account $20,258.76 Miscellaneous Refunds, etc. ~ 3.502.85 Total $42,481.74 I am attaching a copy of the Disbursements of Principal from the estate accounting so that you can see that the estate's expenses to date equal $24,766.17. J. Paul Dibert November 5, 2009 Page 2 As you can see, Mrs. I'orlets has not yet been gone a year and liquid assets in the estate are close to depleted. In addition to the limited liquid assets, Mrs. Yorlets owned, through her revocable trust, a 29.6% undivided tenants in common interest in a farm located in Silver Spring Township, Cumberland County. We have recently obtained an appraisal for the fax~m valuing it at $5,042,000. The farm is improved with a residence which is not in habitable condition, as well as a number of outbuildings in varying condition. Based on this appraisal, we estimate inheritance tax will be $74,621. The other undivided tenants in common interests in the farm are owned by the co-executors individually, their respective children, and trusts established by Mrs. Yorlets' late husband, John C. Yorlets. Mr. Yorlets died on March 1, 1999. The farmland is currently leased to a farmer. Income produced by the farm barely covers payment of applicable property taxes. In 2009, the county/township taxes were $2,168.59 and the school taxes were $5,978.45. As I have worked with the Yorlets family for a long period of time, I am most willing to work with the family with respect to the timing of payment of my fees. We intend to ask to be reimbursed for our out-of-pocket expenses in connection with the administration of the estate on a periodic basis. When Mr. Yorlets died, his estate (and the trusts created under his estate planning documents) had fairly good liquidity. However, Mrs. Yorlets resided at Messiah Village for approximately 10 years prior to her death. Except for the liquid funds referenced in this letter, all funds were exhausted in connection with her care. There was a brief' period of time after Mr. Yorlets' death when modest cash gifts were made to children and grandchildren, but no transfers of that type had occurred within 7 years prior to Mrs. Yorlets' death. The purpose of this letter is to request an extension for time to pay the Pennsylvania Inheritance Tax, pursuant to the provisions of 72 P.S. § 9150, which provides as follows: The Department may, for reasonable cause, extend the time for payment of any part of the inheritance tax and may, if deemed necessary for the protection of the interest of this Commonwealth, require the transferee in present J. Paul Dibert November 5, 2009 Page 3 possession or, if a trust is involved, the trustee, to file a bond in the name of the Commonwealth with sufficient surety, in an amount not exceeding twice the tax computed when the bond is given at the highest rate possible in the specific contingencies involved (reduced by the amount of any partial payment made) and conditioned for the payment of the tax as such postpone due date, together with interest from the due date to the payment date ... . Actual legal title to the portion of the farm includible in Mrs.Yorlets' estate for Pennsylvania Inheritance Tax purposes is in her revocable trust, of which the co-executors of her estate also happen to be the co-trustees. They would certainly offer the security to the Commonwealth in the form of a mortgage on Mrs. Yorlets' interest in the farm, although I believe the Commonwealth is adequately protected by its inchoate lien on the farm. We all know that the economy is not in good condition right now and that the sale on a property like the Yorlets farm is at the present time exceedingly difficult, if not impossible. The Yorlets have worked formally and informally over the years with a number of persons who know that the farm is available for sale, although it is not currently listed for sale with an agent or broker. It is the plan of'the family to more actively market the farm for sale when economic conditions improve. The Executors are making a payment on account of inheritance tax in the amount of $10,000. We respectfully request an extension of time to pay the balance of the inheritance tax not paid until thirty (30) days after closing on the sale of the Yorlets farm. If you require any additional information, please do not hesitate to contact me. c~ r Enclosure cc: Donald L. Yorlets Nancy Livingston Sincerely yours, ~. ~~ ~~ ~ Elyse E Rogers ~~ DISBURSEMENTS OF PRINCIPAL Estate of Dorothy S. Yorlets For Period 2/6/2009 Through 11/5/2009 Administration Expenses (Prin) 03/24/2009 Donald Yorlets, reimbursement for probate fee and payment to assessment office 09/30!2009 Keefer Wood Allen & Rahal, LLP, out of pocket expenses 09/30/2009 Diversified Appraisal Page 1 $ 1,617.53 Farm Expenses 03/18/2009 Goodville Mutual Casualty Co, farm and ranch insurance 04/06/2009 Debra Basehore Wiest, tax collector (county/township) 04/17/2009 Aon Risk Services 09/02/2009 Debra Baseshore Wiest, tax collector (school) 9,632.55 Debts of Decedent 04/02/2009 Alert Pharmacy 04/03/2009 Orthopedic Institute of PA 04!03/2009 Verizon 04/20/2009 Cardin & Miller Physical Therapy PC 04/30/2009 Capital Area Health Association 08!04/2009 Holy Spirit Hospital 09/30/2009 Capital Area Health Associates 216.50 201.03 ~ inn nn 1,402.00 2,168.59 83.51 5,978.45 182.00 5.00 40.97 110.00 10.00 50.00 10.00 407.97 Funeral Expenses (Prin) 02/09/2009 Myers Funeral Home 03/18/2009 Nancy Livingston, reimbursement for payment of funeral expenses (clothes/luncheonlflowers) 04/06/2009 Myers Funeral Home $ 12,575.00 228.12 175.00 John C.Yorlets Jr. & Dorothy Yorlets Ten Ent 5460 Davidsburg Rd Dover, PA 17315-4145 Page > 1 of 1 Vdt1,$,Lidl'd" Client Services: 800-6B2-2739 Total report value: $18,720.13 (Total report value inGudes any accrued dividends.) -' IYBIrI~ -' FWOOIXMS3WUnl ~ ~: L!$i6 ~„ ,. ~7~dS~ i~rt ilk "hEi a ~i ix>t~',t"i9ifi'~~,': Number gpened ' 3htjEes ~Sh~-~ « ~~Cir3*' ~~[~'~en s~`, Wellington Fund Inv 0021-00973766109 05/14/1974 784.582 $23.86 $18,720.13 - 1799528568 04/02/2009 14:26:05 Vanguard Date of Death: 02/06/2009 Estate of : Dorothy S. Yorleta Estate Valuation Date: 02/06/2009 Account: 91461 Processing Date: 04/14 /2D09 Report Type : Date of Death Number of Securities: 1 File ID: Yorlets, Dorothy S. Estate Vanguard Shares Security Mean and/or Div and int Security or Par Description High/Ask Low/Bid Adjustments Accruals Value 1) 784.582 VANGUARD/WELLINGTON FD INC (921935102) COM Mutual Fund (as quoted by NASDAQ) 02/06/2009 23.86000 Mkt 23.860000 18,720.13 Total Value: Total Accrual: Total: $18,720.13 $0.00 $18,720.13 Page 1 This report was produced with EstateVal, a product of Estate Valuations & Pricing Systems, Inc. If you have questions, please contact EVP Systems at (818) 313-6300 or www.evpsys.com. (Revision 7.1.D) PROPERTY DESCRIPTION In addition to the requirements on the instructions page, please also submit: • Claim form, completed and signed • Completed, signed, and notarized Affidavit and Indemnification Agreement. • Original death certificate for owner highlighted above. • Original short certificate, obtained from the Register of Wills office at the county courthouse showing that letters of administration or testamentary were granted and updated within the last two years. • A photocopy of your signature identification in the form of a SIGNED Social Security card or driver's license ~... ~ , ,. ., (A) Original Owner's Name (B) Original Owner's Address as Reported YORLETS DOROTHY 248 MULBERRY DR MECHANICSBURG PA 1705 (C) Bolder Reporting Funtls (D) Last Transaction Date WESTERN UNION FINANCIAL SVCS 05/15/1996 (E) Holder Address and Contact (F) Type of Funds Reported WESTERN UNION UINCLAIMED PROPERTY P O BOX 66 MONEY ORDER ENGLEWOOD CO 80155-6605 (G) Certificate, Policy or Check Number KARLA R ROYCE 9123369998 (720)332-3292 (H) Amount Reported $2,000.00 Total Shares Claimed 0.0000 Total Cash Claimed $2,000.00 RETURN CLAIM FORM AND DOCUMENTATION TO: ... • . • w . w I1 !\___ AI1w"I ~ 1.. .~~...~~. f1A A7An! Aff /1 "I n... ! ~ ~~ rnnnn Susquehanna April 3, 2009 ELYSE E. ROGERS, ESQUIRE 635 NORTH 12T" ST SUITE 400 LEMOYNE, PA 17043 RE: Dorothy S. Yorlets Estate SS#: 184-12-2380 DOD: February 6, 2009 To Whom It May Concern: Susquehanna Bank 28 North Cedar Street P.O. Box 1000 Lititz, PA 17543-7000 Toll free 800.311.3182 In response to your letter of April 1, 2009, here is the above customer account information as of February 6, 2009. Account #1 • Account Title: Dorothy S. Yorlets • Account Type/# Ckg/6100208983 • Date Opened I Maturity Date: 5/17/99 • Interest Rate: .25% • Account Balance": 20,255.07 • Accrued Interest: 3.69 • YTD Interest: 5.28 *Account balance does not include accrued interest. Nancy Livingston & Donald L. Yorlets were added as POAs on 4/12/07. There is no safe deposit box in the name of this decedent. If I can be of further assistance, please feel free to call. Sincerely, 1~%'`(,it/~ Janet M. Peters Support Services Supervisor 1-717-625-6295 JMP/Ijr TRUST SETTLEMENT AND DISTRIBUTION AGREEMENT AGREEMENT made this 3 day of ~ 2003 by and between NANCY LIVINGSTON and DONALD L. YORLETS, Trustees under a Revocable Agreement of Trust of John C. Yorlets, Jr. dated February 25, 1995. WITNESSETH WHEREAS, Nancy Livingston and Donald L. Yorlets ("Trustees") are the acting Trustees under a Revocable Deed of Trust dated February 25, 1995 created by Dorothy S. Yorlets, Nancy Livingston, and Donald L. Yorlets as Guardians of the Estate of John C. Yorlets, Jr., an incompetent, now deceased, and Dorothy S. Yorlets, Nancy Livingston, and Donald L. Yorlets as Trustees; and WHEREAS, John C. Yorlets, Jr. died March 1, 1999; and WHEREAS, the Revocable Agreement of Trust ("the Trust") provides for the division of the assets subject to the Agreement of Trust into three (3) shares, to be known as Yorlets Trust A, Yorlets Trust B, and Yorlets Trust C; and WHEREAS, the statute of limitations on the Federal Estate Tax Return for the Estate of John C. Yorlets, Jr. has expired, without the issuance by the Internal Revenue Service of a Closing Letter; and WHEREAS, the parties desire to fund the trusts to be created under the Revocable Agreement of Trust. NOW THEREFORE, intending to be legally bound, the parties hereto agree as follows: 1. The assets subject to the Trust shall be divided among Yorlets Trust A, Yorlets Trust B-Non-QTIP, Yorlets Trust B-QTIP, and Yorlets Trust C as -1- set forth in a memorandum dated July 29, 2003, attached hereto and made a part hereof as Exhibit "A". 2. Trustees hereby acknowledge that they, in their capacities as Co-Trustees of Yorlets Trust A, Yorlets Trust B-Non-QTIP, Yorlets Trust B-QTIP, and Yorlets Trust C have received (effective upon actual receipt) the amounts to which they, in their capacities as Trustees, are entitled under the Trust. 3. Trustees state that they have reviewed the accounting of Yorlets Revocable Trust in the form attached hereto and made a part hereof as Exhibit "B". Trustees waive their right to have the informal account filed with the Register of Wills and accept and approve it with the same force and effect as if it had been filed in the Office of the Register of Wills, audited in the Orphans' Court, adjudicated and confirmed absolutely, and the amount paid to them had been duly awarded to them by Order of Court. 4. Trustees acknowledge that they shall refund to Yorlets Revocable Trust any amount which may be necessary in the future to discharge any obligations and liabilities of Yorlets Revocable Trust or of the Estate of John C. Yorlets, Jr. of which they may hereafter receive notice. 5. Trustees intend that this Agreement shall be governed by the laws of the Commonwealth of Pennsylvania and shall be legally binding upon Trustees, their heirs, successors and assigns. , Donald L. Y~o~et~, Trustee Nancy Liv gston, Tr ee -2- COMMONWEALTH OF PENNSYLVANIA ss. COUNTY OF ~~~~'^^`}` On this, the ~~ day of ~ ~2,CQ~~r~~ , 2003, before me, the undersigned officer, a Notary Public in and for said county and state, personally appeared DONALD L. YORLETS, known to me or satisfactorily proven to be the person whose name is subscribed to the within instrument, and acknowledged that she executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. ~~~\~ ~.~ Notary Public NOTARIAL SEAL ~~ PATRICIA D. OLYARNIK, Notary Public Hampden Twp., Cumberland County My Commission Expires August 27, 2005 COMMONWEALTH OF PENNSYLVANIA ss. COUNTY OF Cam.-~~~~~'`""~` On this, the ~r day of ~~~Z..GQ..r-~r~r , 2003, before me, the undersigned officer, a Notary Public in and for said county and state, personally appeared NANCY LIVINGSTON, known to me or satisfactorily proven to be the person whose name is subscribed to the within instrument, and acknowledged that she executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. --(rte ~~ _ . •__. _ Notary Public NOTARIAL SEAL PATRICIA D. OLYARNIK, Notary Public Hampden Twp., Cumberland County My Commission Expires August 27, 2005 -3- MEMORANDUM Date: July 29, 2003 To: Nancy Livingston Donald Yorlets From: Elyse E. Rogers Re: John C. Yorlets, Jr./Yorlets Trusts Final Distributions This memorandum sets forth proposed final distributions from the John C. Yorlets Estate and the Yorlets Revocable Trust, dividing the assets among Trust A, Trust B, and Trust C. The Estate has been cleared to a zero balance. The Estate owed your mother about $10,000, and your mother does owe the Trust a substantial sum. The $10,000 debt of the Estate to your mother has been offset against her debt to the Trust, reducing the amount carried as a debt owed by her to the Trust. We have posted Trust transactions through June 30, 2003, and all recommendations are based on the Trust as of June 30, with values adjusted to that date. We have used the figure of $1,009,436 for the Trust's one half interest in the farm, as we discussed when we met. The following tables are updated from the December 2, 2002 Memo I prepared for you. Assets on Hand, June 30, 2003 (See Attached Accounting) for Division among Trusts A, B, and C~ Yorlets Trusts -Principal Balances for Division Per Attached Trust Assets on Hand (Principal) $ 1,486,440 Excess Executor's Fees $ 17,760 Principal Invasion for Dorothy Yorlets $ 193,563 Reserves for Expenses $ (5,000) Total $ 1,692,763 Division of Assets Among Trusts, Based on Assets on Hand, June 30, 2003 Trust Percentage June 30, 2003 Yorlets Trust A ~'~~~ 35.563% $ 601,998 Yorlets Trust B-Non-QTIP ~`~{ a 19.8905% $ 336,699 Yorlets Trust B-QTIP 9.0365% $ 152,966 Yorlets Trust C 35.510% $ 601,100 Total 100% $ 1,692,763 Division of Undivided Tenants in Common Interests in Farm Among Trusts Trust's interest in Farm $ 1,009,436 50% To Trust A $ 584,238 28.94% To Trust B-Non-QTIP $ 336,699 16.68% To Trust B-QTIP $ 88,499 4.38% To Trust C -0- 0% Allocation of Assets Among Trusts, June 30, 2003 Allocation of Assets and Deemed Assets to Trusts Trust C ~ $ 601,100 Principal invasions $ 193,563 Brokerage Account (excluding $5,000 cash, allocated to Trust A, below) $ 206,819 Loan to Dorothy Yorlets $ 200,718 $ 601,100 Trust B-QTIP $ 152 966 Loan to Dorothy Yorlets $ 64,467 Farm $ 88,499 $ 152,966 Trust B-Non-QTIP $ 336,699 Farm $ 336,699 $ 336,699 Trust A $ 601,998 Farm $ 584, 238 Excess Executor Fees $ 17,760 Cash $ 5,000 Less Reserve $ (5,000) $ 601,998 SUMMARY OF ACCOUNT Yorlets Trust C For Period 01/01/2004 Through 10/02/2006 Fiduciary Acquisition Page Value Principal ----------- Receipts 1-3 $380,197.68 Net Gain (or Loss) on Sales or Other Dispositions 4-6 26,196.24 Other Receipts 0.00 $406,393.92 Less Disbursements: Administration Expenses (Prin) 7 $7,463.71 Fees and Commissions (Prin) 7 3,556.50 Other Expenses (Prin) 7 2,214.00 13,234.21 Balance before Distributions $393,159.71 Distributions to Beneficiaries 8-9 112,462.17 Principal Balance on Hand 10 $280,697.54 Income Receipts 11-14 $ 5,738.67 Less Disbursements 0.00 Balance before Distributions $ 5,738.67 Distributions to Beneficiaries 15-16 5,738.67 Income Balance on Hand $ 0.00 Combined Balance on Hand $280,697.54 RECEIPTS OF PRINCIPAL Yorlets Trust C As of 10/02/2006 Assets Listed in Inventory (Valued as of date received) Cash on Hand Distribution from John Yorlets Est Common Stocks Investors First/Small Cap Fund Inc. 2,611 Units Royce Value Tr Inc. 1,880 Units Mutual Funds vanguard Inflation Protected 1,992.032 Units Vanguard Short Term U.S. Treasury 5,361.896 Units Corporate Bonds Merrill Lynch Medium Term Nts 200,000 Units Miscellaneous Property Loan to Dorothy Yorlets TOTAL INVENTORY $ 22,846.25 23,612.80 $ 25,035.00 57,027.64 Page 1 Fiduciary Acquisition Value $ 15,487.72 46,459.05 82,062.64 22,274.00 200,718.00 $367,001.41 1 f RECEIPTS OF PRINCIPAL Page 2 Yorlets Trust C As of 10/02/2006 Receipts Subsequent to Inventory (Valued when received) 01/30/2004 Fruit of the Loom Payment 01/30/04 $ 200.67 05/18/2004 Fruit of the Loom Payment 05/18/04 84.03 12/27/2005 Fruit of the Loom Payment 12/27/05 - capital gains 326.54 03/01/2005 Fruit of the Loom payment 03/01/05 - capital gains 62.83 TOTAL RECEIPTS SUBSEQUENT TO INVENTORY -____--_--_ $ 694 0 . 7 RECEIPTS OF PRINCIPAL Yorlets Trust C As of 10/02/2006 Adjustment to Carrying Values 12/31/2004 Adjusted carrying value of Merrill Lynch Med Term Nts for OID for years 1999-2004 1999 $1,082.61 2000 $1,940.34 2001 $2,098.67 2002 $2,269.92 2003 $2,455.16 2004 $2,655.50 Total $12,502.20 Adjusted Value Value per Inventory TOTAL ADNSTMENTS TO CARRYING VALUES SUMMARY Total Inventory Total Receipts Subsequent To Inventory Total Adjustments To Carrying Values TOTAL RECEIPTS OF PRINCIPAL $ 34,776.20 22,274.00 Page 3 $ 12,502.20 $ 12,502.20 $367,001.41 694.07 12,502.20 $380,197.68 GAINS AND LOSSES ON SALES OR OTHER DISPOSITIONS Yorlets Trust C For Period 01/01/2004 Through 10/02/2006 03/03/2004 Sale of 1880 shares of Royce Value Tr Inc. 1,880 Units Net Proceeds $ 34,459.05 Fiduciary Acquisition Value 23,612.80 ----------- Net Gain 03/09/2004 Sale of Investors First Fd Inc. 2,611 Units Net Proceeds $ 35,282.62 Fiduciary Acquisition Value 22,846.25 ----------- Net Gain 06/04/2004 Sale of 1992.032 shares of Vanguard Inflation Protected Securities Fund 1,992.032 Units Net Proceeds $ 24,586.52 Fiduciary Acquisition Value 25,035.00 Net Loss 12/28/2004 Sale of 1000 Vanguard Short Term US Treasury Fund 1,000 Units Net Proceeds $ 10,425.00 Fiduciary Acquisition Value 10,635.72 Net Loss 03/08/2005 Redemption of Stearns Bk NA St Cloud Minn Ctf Dep 3/8/05 dated 9/8/04 Net Proceeds $ 30,000.00 Fiduciary Acquisition Value 29,956.21 ----------- Net Gain Gain $ 10,846.25 12,436.37 Page 4 Loss $ 448.48 210.72 41.79 GAINS AND LOSSES ON SALES OR OTHER DISPOSITIONS Yorlets Trust C For Period 01/01/2004 Through 10/02/2006 05/17/2005 Sale of 2000 shares of Vanguard Short Term US Treasury Fund 2,000 Units Net Proceeds $ 20,805.00 Fiduciary Acquisition Value 21,271.45 Net Losa 09/26/2005 Redemption of Discover Bk Greenwood Del CD dated 09/25/02 matures 09/26/05 Net Proceeds $ 30,000.00 Fiduciary Acquisition Value 29,962.50 ----------- Net Gain 11/22/2005 Sale of 2361.896 shares of Vanguard Short Term US Treasury Fund 2,361.896 Units Net Proceeds $ 24,363.39 Fiduciary Acquisition Value 25,120.47 Net Loas 04/27/2006 Redemption of $10,000 Capital Crossing Bk Boston 06/28/06 Net Proceeds $ 9,972.40 Fiduciary Acquisition Value 10,000.01 Net Loss 06/28/2006 Redemption of Capital Crossing Bk Boston 06/28/06 Net Proceeds $ 10,000.00 Fiduciary Acquisition Value 9,979.13 ----------- Net Gain Gain 37.50 20.87 06/30/2006 Sale of Merrill Lynch Med Term Ntas Zero Cpn 200,000 Units Page 5 Loss $ 466.45 757.08 27.61 GAINS AND LOSSES ON SALES OR OTHER DISPOSITIONS Page 6 Yorlets Truat C For Period 01/01/2004 Through 10/02/2006 Gain Loss ---- Net Proceeds $ 39,500.00 Fiduciary Acquisition Value 34,776.20 ----------- Net Gain $ 4,723.80 Total Gains and Losses $28,106.58 $1,910.34 Less Loss (1,910.34) Net Gain $ 26,196.24 DISBURSEMENTS OF PRINCIPAL Yorlets Trust C For Period 01/01/2004 Through 10/02/2006 Administration Expenses (Prin) 01/12/2004 Management fee 04/13/2004 Management fee 07/12/2004 Management fee 10/14/2004 Management fee 01/14/2005 Pershing Investment, management fee 04/13/2005 Pershing Investment, management fee 06/01/2005 Reimbursement of out of pocket expenses paid to Keefer Wood Allen & Rahal, LLP 07/11/2005 Pershing Investment, 10/10/2005 Pershing Investment, 01/09/2006 Pershing, management 04/04/2006 Pershing, management 07/12/2006 Pershing, management management fee management fee fee fee fee Fees and Commissions (Prin) 12/31/2004 Keefer, Wood Allen & Rahal, LLP 06/01/2005 Reimbursement of fees paid to Keefer Wood Allen & Rahal, LLP Other Expenses (Prin) 04/01/2005 Reimbursement of 2004 PA 41 income taxes TOTAL DISBURSEMENTS OF PRINCIPAL $ 1,000.00 1,000.00 1,000.00 1,000.00 706.00 631.00 64.71 558.00 484.00 413.00 338.00 269.00 $ 2,605.50 951.00 Page 7 $ 7,463.71 3,556.50 2,214.00 $ 13,234.21 DISTRIBUTIONS OF PRINCIPAL TO BENEFICIARIES Yorlets Trust C For Period 01/01/2004 Through 10/02/2006 To: Dorothy S. Yorlets Distribution 01/02/2004 Cash $ 5,000.00 02/02/2004 Cash 4,634.27 03/01/2004 Cash 4,510.94 04/01/2004 Cash 4,805.25 05/03/2004 Cash 4,876.51 06/01/2004 Cash 4,680.06 07/01/2004 Cash 4,874.37 08/02/2004 Cash 4,878.79 09/01/2004 Cash 4,872.05 10/01/2004 Cash 4,865.54 11/01/2004 Cash 4,863.88 12/01/2004 Cash 4,863.17 01/03/2005 Cash 4,704.51 02/01/2005 Cash 4,865.23 03/01/2005 Cash 4,886.30 04/01/2005 Cash 2,433.78 05/02/2005 Cash 4,873.09 06/01/2005 Cash 3,759.40 07/01/2005 Cash 4,764.60 08/01/2005 Cash 4,912.29 09/01/2005 Cash 4,915.26 10/03/2005 Cash 4,658.64 11/01/2005 Cash 4,843.46 12/01/2005 Cash 4,920.76 Page 8 RECEIPTS OF INCOME Yorlets Truat C For Period 01/01/2004 Through 10/02/2006 Dividends Investors First/Small Cap Fund Inc. 01/30/2004 Dividends 02/27/2004 Dividends Pershing Investment 01/15/2004 Dividends 02/13/2004 Dividends 03/15/2004 Dividends 04/15/2004 Dividends 05/14/2004 Dividends 06/15/2004 Dividends 07/15/2004 Dividends 08/13/2004 Dividends 09/15/2004 Dividends 10/15/2004 Dividends 11/15/2004 Dividends 12/31/2004 Dividends 01/14/2005 Dividends 02/15/2005 Dividends 03/15/2005 Dividends 04/15/2005 Dividends 05/13/2005 Dividends 05/19/2005 Dividends 05/31/2005 Dividends $ 365.54 365.54 731.08 0.19 0.32 0.68 2.83 2.57 2.56 1.67 2.50 7.22 7.49 6.53 7.31 4.48 6.19 17.50 16.56 9.11 2.65 18.09 Page 11 RECEIPTS OF INCOME Yorlets Trust C For Period 01/01/2004 Through 10/02/2006 06/30/2005 Dividends 07/29/2005 Dividends 08/31/2005 Dividends 09/30/2005 Dividends 10/31/2005 Dividends 11/30/2005 Dividends 12/30/2005 Dividends 01/31/2006 Dividends 02/28/2006 Dividends 03/31/2006 Dividends 04/28/2006 Dividends 05/31/2006 Dividends 06/30/2006 Dividends 07/31/2006 Dividends 08/31/2006 Dividends 09/29/2006 Dividends 10/02/2006 Dividends Vanguard Inflation Protected 03/29/2004 Dividends Vanguard Short Term U.S. Treasury 02/02/2004 Dividends 03/01/2004 Dividends 04/01/2004 Dividends 05/03/2004 Dividends $ 34.44 28.30 19.69 14.28 24.01 29.76 52.27 29.35 37.94 27.67 16.09 29.95 13.26 30.68 36.28 63.88 4.71 609.03 $ 79.68 123.20 114.39 120.66 117.37 Page 12 RECEIPTS OF INCOME Yorlets Trust C For Period 01/01/2004 Through 10/02/2006 06/01/2004 Dividends 07/01/2004 Dividends 08/02/2004 Dividends 09/01/2004 Dividends 10/01/2004 Dividends 11/01/2004 Dividends 12/01/2004 Dividends 01/04/2005 Dividends 02/01/2005 Dividends 03/01/2005 Dividends 04/01/2005 Dividends 05/02/2005 Dividends 06/01/2005 Dividends 07/01/2005 Dividends 08/01/2005 Dividends 09/01/2005 Dividends 10/03/2005 Dividends 11/01/2005 Dividends 11/22/2005 Dividends Total Dividends Interest Capital Crossing Bk Boston 06/28/06 04/27/2006 Interest 06/28/2006 Interest $ 123.07 119.54 125.45 127.24 128.63 130.30 125.57 130.29 107.51 96.69 110.35 107.85 87.19 59.41 65.03 65.71 64.71 67.92 49.36 2,367.44 $ 219.67 284.22 503.89 Page 13 $ 3,787.23 RECEIPTS OF INCOME Yorlets Trust C For Period 01/01/2004 Through 10/02/2006 Discover Bk Greenwood Del 09/26/2005 Interest $ 261.37 Stearns Bk NA St Cloud Minn Ct 03/08/2005 Interest 238.03 US Treas Bill dated 03/23/06 09/21/2006 Rdemption of US Treas Bills dated 03/23/06 117.83 US Treas Bills 08/24/06 08/24/2006 Redemption of US Treasury Bill dated 02/23/06 133.12 US Treas Bills dated 01/26/06 07/27/2006 Redemption of US Treas Bills 07/27/06 129.22 US Treasury Bill 06/09/05 06/09/2005 Redemption of US Treasury Bill 06/09/05 200.96 US Treasury Bill 4/21/05 10/20/2005 Redemption of US Treasury Bills 10/20/05 dated 4/21/05 37.64 US Treasury Bill dtd 07/21/05 01/19/2006 Redemption of US Treasury Bill dated 07/21/05 40.13 US Treasury Bills 02/17/05 02/17/2005 Redemption of US Treasury Bill 02/17/05 126.64 US Treasury Bills 08/19/04 08/19/2004 Redemption of US Treasury Bill 08/19/04 54.75 US Treasury Bills 09/09/04 09/09/2004 Redemption of US Treasury Bill 09/09/04 107.86 Total Interest TOTAL RECEIPTS OF INCOME Page 14 $ 1,951.44 $ 5,738.67 To: Dorothy S. Yorlets Distribution 02/02/2004 Cash 03/01/2004 Cash 04/01/2004 Cash 05/03/2004 Cash 06/01/2004 Cash 07/01/2004 Cash 08/02/2004 Cash 09/01/2004 Cash 10/01/2004 Cash 11/01/2004 Cash 12/01/2004 Cash 01/03/2005 Cash 02/01/2005 Cash 03/01/2005 Cash 04/01/2005 Cash 05/02/2005 Cash 06/01/2005 Cash 07/01/2005 Cash 08/01/2005 Cash 09/01/2005 Cash 10/03/2005 Cash 11/01/2005 Cash 12/01/2005 Cash 01/03/2006 Cash DISTRIBUTIONS OF INCOME TO BENEFICIARIES Yorlets Trust C For Period 01/01/2004 Through 10/02/2006 365.73 489.06 194.75 123.49 119.94 125.63 121.21 127.95 134.46 136.12 136.83 295.49 134.77 113.70 352.22 126.91 224.89 235.40 87.71 84.72 341.36 156.54 79.24 52.27 Page 15 DISTRIBUTIONS OF INCOME TO BENEFICIARIES Page 16 Yorlets Trust C For Period 01/01/2004 Through 10/02/2006 02/01/2006 Cash $ 193.43 03/01/2006 Cash 37.94 04/03/2006 Cash 27.87 05/01/2006 Cash 16.09 06/01/2006 Cash 29.95 07/03/2006 Cash 297.48 08/01/2006 Cash 66.96 09/01/2006 Cash 63.88 10/02/2006 Cash 644.68 ----------- ota for Dorothy S. Yorlets $ 5,738.67 TOTAL DISTRIBUTIONS OF INCOME TO BENEFICIARIES $ 5,738.67 REVOCABLE AGRF.EMFNT OF TRIIST j THIS REVOCABLE AGREEMENT OF TRUST made and entered into as of this aS'~' day of -~~'c~~.~- 1995, by and between DOROTHY S. YORLETS, NANCY LIVINGSTON, and DONALD L. YORLETS as Guardians of the Estate of John C. Yorlets, Jr., as Grantor, (hereinafter referred to as the "Grantor"), anal DOROTHY S. ~ y~ k YORLETS, NANCY LIVINGSTON and DONALD L. YORLETS, as Trustees, (hereinafter collectively referred to as "Tzust~.ee") . _tt ~.~~_ WITNESSETH: y ~ ~ ,~, ~ . WHEREAS~~: ,Grantor~"wandecla~n,~:d.., incompetent „, and ~'~" ' ~ ~ ~~x„ Dorothy S. YorTe~sm~, Nancy° Livr.rrgston„.Nand"Donald L ~~orlets were appointed Giiar~ian of•-~he'~erson`~and of the Estate of ~~~ John C . Yorlets , Jr . by orde.~~ ohe Court of Common Pleas of Cumberland County; Pennsylvanxs~~~ted October 31, 1991; and s ~~,. q; ~kw_. ~ *, - . . WHEREAS , Doi~ertliy S . Yorlets , Nancy C . Livingston , and Donald L. Yorlets, as~Go-Guardians of the person and Estate of John C. Yorlets, Jr. instituted an action in the Court of Common Pleas of Chester County, No. C.A. No. 91-09417 (hereinafter referred to as the "Litigation"), to seek recovery of damages suffered by John C. Yorlets, Jr. (hereinafter referred to as the "Beneficiary") in a motor vehicle accident; and WHEREAS, each of the Co-Guardians has approved a settlement of said action resulting in the payment, inter alia, of One Million Three Hundred Twenty-Nine Thousand One Hundred Fifty-Four Dollars and Fifty-Three Cents ($1,329,154.53) to themselves as Co-Guardians of Beneficiary, which settlement is subject to the approval of the Court of Common Pleas of Chester County; and WHEREAS, Grantor desires to transfer all sums received in settlement of the aforementioned action to themselves as Trustee for the benefit of Beneficiary, his spouse and his children, to be held, administered and distribsuted as provided herein. ~~. D10W, THEREFORE, in considerration of ~ ~l,mutual covenants and agreements herein cnu~~ed, and'aubject to the rior a z~~. r~r~~. ~`., P pproval of the Court of Comm~am ELeas of Cumberland County, Pennsy~ a, it 'i agreed and among the parties ,. hereto as foll {"% kba r } rv `~ 9uv ``~z ~ ~ ~ ARTICLE" I '` "' Grantor, concurrently with or subsequent to the ~ ~~~" '` ,execution of-, t~%s Agreement, and with the rior a ~'~'~ ~'~ 4°°`~ P pproval of the Gourt of ~mmon Pleas, Cumberland County, ,~, Orphans' Court Divis/ygn,";;:Pennsylvania, will transfer and convey to Trustee all proceed`sf received by it as a result of the Litigation, which said assets, together with any subsequent additions thereto, are hereinafter referred to as the "Trust", and Trustee, in consideration thereof, agrees to hold and administer said assets and any additions thereto as Trustee, IN TRUST NEVERTHELESS, for the following uses and purposes: <a) Trustee shall have, hold, manage, invest and reinvest the same, collect the net income and pay to or for the benefit of the Beneficiary and his wife, DOROTHY S. YORLETS, in convenient installments, all of the net income. All net income shall be distributed to or for the benefit of Beneficiary, unless the net - 2 - income of DOROTHY S. support, maintenance any amounts in exces support, maintenance shall be distributed YORLETS. YORLETS is insufficient for her and medical care, in which event s of the amount required for the and medical care of Beneficiary to Beneficiary's wife, DOROTHY S. (b) Subject to any restrictions imposed by~the Court of Common Pleas of Cumberland Count~rra;, Orphans' Court Division, Trustee may also experid so 'much of the principal of the Trust as, in rt"s:,.discret%on, may be r,~~,, i necessary and/or advis;~ble to supg=lenient aT1 income of i ~. ~ Grantor in order to g~a~.de supPort~gand maintenance, ~ including medical, hospital, nursxi~gW,and nursing home care for the.`'Benefic~ry and his ~~ DOROTHY 5~. :_ ~;~,- ws YORLyTS . ~~4: ~4 ~ fr . ~y~... , ~ (c) Upon_ they death of»' ,Beneficiary, Trustee shall I I pay over to the Executor of.~~~eneficiary's estate so ~~ much of the princ7pal as shall be required to pay all ~ cash and specific bequests provided in Beneficiary's ~ Will and inheritance and estate taxes, funeral and administration costs which may be incurred with respect to Beneficiary's estate. Thereafter, Trustee shall, if Beneficiary predeceases Beneficiary's wife, ,' DOROTHY S. YORLETS, divide the remaining assets, i proceeds from or on account of insurance policies received by reason of the death of Beneficiary, and any other assets and funds (hereinafter referred to as the "principal") into three (3) parts, each of which '~ shall be held in trust and constitute a separate Trust Fund, to be known as "Trust A", "Trust B" and "Trust C" - 3 - "Trust A": There shall be placed in "Trust A" that fraction of the total principal of which the numerator shall be a sum equal to the largest amount that can pass free of Federal estate tax by reason of the unified credit and the state death tax credit (provided that the use of this credit does not require an increase in state death taxes) allowable to Beneficiary's estate but no other credit ~~: and after taking account of property pass~,~ outside of this Agreement of Trust which does nr~t qualify for the marital or charitable dedu~i~on and afaez taking account of charges to ,principal,tfat are no't allowed ~:; as deductions in computing Ben~f,ic~ary's Federal estate tax, ,and of whic~s :the de~ircamiaator shalL'be the value of the:~zt.gtal principal Fo~gu~poses or ~~ ti-~u~ s ~ ., _,. ~.; establishin~'jsu~h fract~ion,~,=the values finally fixed in the Federal estate tax praceedirrg relating to .~~;: Beneficiary's: ,estate shall be*Hused. °~`Beneficiary n recognizes tha~tthe~~~numerat~~of such fraction may be max.-:. - ;, x. . zero (0), in whxcl`"case no property shall pass under "Trust A" and that said numerator may be affected by the action of the Executor of Beneficiary's estate in exercising certain tax elections. "Trust B": There shall be placed in "Trust B" that fraction of the total principal of which the numerator shall be a sum equal to the amount of the generation-skipping transfer tax exemption as provided in Section 2631 of the Internal Revenue Code of 1986, or any comparable legislation in effect at the time of Beneficiary's death and then available to Beneficiary after consideration of generation-skipping - 4 - transfers made by Beneficiary during his lifetime or made under other Articles of this Agreement, and the allocation of the generation-skipping .transfer tax exemption made by Beneficiary's executors to such generation-skipping transfers and of which the denominator shall be the value of the total principal. For purposes of establishing such fraction, the value is finally fixed and the federal estate tax proceedings relating to Benefi{'diary's ' ~ ,~~. estate shall be used. ~;=,s- 5 M -.. x,,.~? "Trust C": The ~~x~Lance of th~~rincipal ,,: ,~~>. ~ .,,. not placed in "Trust 2~~and "T'~st~,B" shall'~~e, placed f ~ in "Trust C" ;°~~~, ~~. ~. ARTICLE SIT:, ~~ G'rantor,r or any other person, from ,~~ fir:-~: time to time, with the consent of Trustee, may give, devise, ;: ~~ , bequeath, grant car otherwise~~t.~a3xsfer and- convey any other ,.E r o e r t '""` ~' p p y, real, personal or m~rxe~``to Trustee, to be M •: .. administered and disfi bitted in accordance with the provisions of this Agreement. `"~` ARTICLE III: The following provisions shall apply to "Trust A": (a) Trustee shall pay the net income arising from the principal of this Trust in quarterly installments to Beneficiary's wife, DOROTHY S. YORLETS, during her lifetime. (b) During the life of Beneficiary's wife, DOROTHY S. YORLETS, Trustee shall pay to or for the - 5 - benefit of Beneficiary's wife so much of the principal ~! of this Trust as may be necessary, in the sole discretion of Trustee, for the proper support, maintenance and medical care of Beneficiary's wife. (c) Upon the death of Beneficiary's wife, or if Beneficiary's wife should predecease Beneficiary, they. upon Beneficiary's death, Trustee shall divide the then principal and any accretions thereto''`and any ,_~- accumulations of income into as many e~~~tal:parts as there are then living children o£ Benefic.i.ary and then deceased children of Beneficiary~~;represented by then ,~.4~ living issue. Trust:ee:~~s~~hall hold one such share for r,~.x« ~ ~`~, each liven child ofd~B~~reficiary~~ ~ shall hold one °° °~,~~ ~ ..~a such share.~~a. separate Trust fa~~Fie benefit of the ~. ~ , ~ ~,,u~ , ~,. ~, ~ fit. ~~4~,, ~;* issue of eacfii such theme: deceased chx""~d of Benef iciary, per stirpes.;>h,;Each sham fob;=a livr~ng child of ,~~ Beneficiary shall be admrn~saered an'd` distributed as .,, ~~. ~'. , _ provided in AR'EICI1~.;;.VI. (d) In eacfr"~;~~st established for the benefit of the issue of a deceased child of Beneficiary, Trustee shall quarterly pay the net income to or for the benefit of the issue of such deceased child of Beneficiary, per stirpes, living at each time of quarterly distribution; as soon as any one of said issue attains the age of twenty-one (21) years, and in no event later than twenty (20) years following the death of the survivor of Beneficiary and Beneficiary's wife, Trustee shall pay over all of the then assets in the Trust to the then living issue of Beneficiary's deceased child, per stirpes. j - 6 - (e) If at any time before final distribution of the assets of any of the Trusts established for issue of a deceased child of Beneficiary there are no living beneficiaries of said Trust, the Trust shall terminate and its assets shall be divided into as many equal parts as there are then living children of Beneficiary and then deceased children of Beneficiary represented by the then living issue. One such share ,hall be ~~- ~~ paid to each then living child and one sucli share ~M ° '«~ '' shall be held in trust for the benefit ¢f `the then living issue of each such then. deceased cTs: d, per stirpes , to be held,. ,a.dministeace~d ';and dist~rs%}~uted in accordance with subp~r,~graph ('d:) ~wlrovided,'~~that if any of said ;"Trusts herezzr~ created stave previotrs,ly beer. .. „~.~ ' terminated by payment'`=of its princ~xpal to its ~`-:: beneficiaries, said beneficiaries ~r~ho received payment of the principal of that ;-.Trust shaTT collectively be considered an "exi tent Trust" for the purpose of this paragraph, and one equal share shall be paid directly ~~:~> to such beneficiaries in the same proportion by which they received the`"'principal of the Trust, or, if any such beneficiary is deceased, the share of such deceased beneficiary shall be paid to the then living issue of such beneficiary, per stirpes. ARTICLE ITT; The following provisions shall apply to "Trust B": ~ (a) Trustee shall have, hold, manage, invest and reinvest the assets of this Trust, collect the income ~ and beginning at Beneficiary's death pay over the net income in quarterly installments to Beneficiary's - 7 - wife, DOROTHY S. YORLETS, during her lifetime. ~ Trustee shall also, from time to time, pay to ~ Beneficiary's wife such amounts of principal of this i Trust as Trustee deems necessary for the proper support, maintenance and medical care of Beneficiary's wife . (b) Upon the death of Beneficiary's wife, :. Trustee shall pay all accrued income and ala income rs„~: accumulated but undistributed to the estate-!of Beneficiary's deceased wife and~ahall th~e;after `,~, j ~~,..> . ~~ , ., transfer the then remaining prsne~ipal of this Trust to ~~ "Trust A" to be held~;~~~administre~ed and dist~i.buted in accordance ith the ov~sions elf ARTICLE III of this r ~~ ~ ~ ,° rt.,, !~... Agreement od~'~T"=ust ;;, '' "~'' ~ q ~ g~ ;_ '~~~ (c) If,:Beneficiary-! s ~rz:fe should not survive .: . riM ~ ,„ Beneficiary, ~then~.the pre,pp }~o~ns of "Trust B" shall be void and the asset~s~Fwhich'~gau~d have constituted T "Trust B" shall`&e:~~dded toy "Trust A" to be disposed }~; ~, a. of in accordance `wx.h ARTICLE III of this Agreement of Trust. (d) Trustee shall be authorized in Trustee's sole, exclusive and unrestricted discretion to determine whether to elect (under Section 2056(b)(7) of the Internal Revenue Code of 1986 as amended, or any corresponding provision of the Federal estate law), to qualify all, none or a fraction of "Trust B" for the Federal estate tax marital deduction. The ~ decision of Trustee with respect to the exercise of _ the election shall be final and conclusive upon all j persons whose interests in Beneficiary's estate or this Agreement of Trust are directly or indirectly - 8 - affected by the election. Only property which is fully eligible for the marital deduction under Federal estate tax law shall be assigned to this Trust. Notwithstanding anything to the contrary contained in this Agreement of Trust, Trustee of this Trust shall not retain beyond a reasonable time any property which may at any time be or become unproductive, nor shall they invest in unproductive property. Notwithstanding ,.~ the provisions of subparagraph (b) of~this;~Article, Trustee shall pay to the Executor of $err.ef~iciary's wife's estate, out of the prin~i~al of thin-;Trust upon the death of Beneficiary's w1fa.,N~aA amovn~~;equal to ~~ .• ~, the estate, inheritance.„v. transfer,'~psuccessian. and i other death=axes ('"dea-th taxes'~~,,deral, state and i .bay, ~;.`' ,~"~ '~"::, i other, paya~,e by reason of the ~.n~trsion of the.. value ' ~a~~*. >' ', '~~ ~'~ of Trust pr•.rxper~ty in B.eneficiary's~;=~wi'fe's estate. y~, Such payment%„,~hall be equal 'yto the' mount by which (1) :~ the total of ;such (death ~t~es~y~tiypaid by Beneficiary's Taife's estate "exceeds (2) t~re~":dotal of such death taxes which would~~Irave been~~payable if the value of the Trust property dad not been included in her estate. The determination by the Executor of Beneficiary's wife's estate of the amount payable hereunder shall be final. Beneficiary directs Trustee to pay such amount promptly upon written request of the Executor of Beneficiary's wife's estate. The final determination of the amount due hereunder shall be based upon the value as finally determined for Federal estate tax purposes in Beneficiary's wife's estate. After payment of the amount finally determined to be due hereunder, Trustee shall be discharged from any further liability with respect to - 9 - such payment. Beneficiary's wife may waive her estate's right to payment under this subparagraph by Will, executed after Beneficiary's death, in which she specifically refers to the right to payment hereunder given to her estate. ARTICLE V: The following provisions shall apply to "Trust C": (a) Trustee shall pay the net irrci~me~°arisin~ from the principal of this Trtx :t,in quar~,~y rt~~~.;a. installments to Benef.iciary'sx.w~fre.~,. DOROTAY':S. v YORLETS, during her-~~time ~~~- f~`~ _.. (b) Dining the ~ife~ of Benef~~rary's wife',„ <.,, ,~ h, ^r^ Trustee shad gay to o. fo~,the benefit of e ~m~, "~' .sir„ , Beneficiary'~sr wife so mach ~~f. the grsncipal of this ~~ -. ~t ~ ~..~: Trust as may~_~Q n.ecessar~, -'~u;the sole discretion of ~,,. .~,.. Trustee, for the pxoper support, maintenance and medical care of S:e<rreficiary's wife. (c) Upon the death of Beneficiary's wife, or if Beneficiary's wife should predecease Beneficiary, then upon Beneficiary's death, Trustee shall divide the i then principal and any accretions thereto and any accumulations of income into as many equal parts as there are then living children of Beneficiary and then deceased children of Beneficiary represented by then living issue. Trustee shall pay one such share to I each living child of Beneficiary, and shall hold one j such share as a separate Trust for the benefit of the issue of each such then deceased child of Beneficiary, per stirpes. - 10 - i (d) In each Trust established for the benefit of the issue of a deceased child of Beneficiary, Trustee shall quarterly pay the net income to or for the benefit of the issue of such deceased child of Beneficiary, per stirpes, living at each time of quarterly distribution; as soon as any one of said issue attains the age of twenty-one (21) years, and in ' no event later than twenty (20) years following the. _. death of the survivor of Beneficiary and B'eneficiary's ~t~Afy wife, Trustee shall pay over all of the then assets in . ~:, the Trust to the then living ~ sue of Beneficiary's ~. _ deceased child, per stirpes. ~.~ ~~~, ~"„ *r» ~ ~F ,yam -~, MAY ': (e) Lf,-.=at any~„~t~'~ie~iefore~~final distribution of the assets c~ 44~~~y~~Y~~ny of ;~-~he~'I'susts 'established foz;r.issue of a deceased child ofy,~~ene-f.iciary.. (here are no""living beneficiaries,. of said T~"~ust-„`;~the Trost shall terminate ., and its assets shall be dd~ed into `as many equal parts as there ~arew~then lrvxmg children of Beneficiary .,~ ., x;,~,.. d.. and then deceaser~`~cb:zldren of Beneficiary represented by the then living issue. One such share shall be paid to each then living child and one such share shall be held in trust for the benefit of the then living issue of each such then deceased child, per stirpes, to be held, administered and distributed in accordance with subparagraph (d). Provided, that if any of said Trusts herein created have previously been terminated by payment of its principal to its beneficiaries, said beneficiaries who received payment of the principal of that Trust shall collectively be considered an "existent Trust" for the purpose of this paragraph, and one equal share shall be paid directly i i i - 11 - to such beneficiaries in the same proportion by which they received the principal of the Trust, or, if any such beneficiary is deceased, the share of such deceased beneficiary shall be paid to the then living issue of such beneficiary, per stirpes. (f) Trustee shall be authorized in Trustee's sole, exclusive and unrestricted discretion to ' determine whether to elect (under Section```,2056(b)(7) ' of the Internal Revenue Code of 1986 as amended, or any corresponding provision ~ the Federal estate ";x~~;a law), to qualify all,, ,none or,~;fr~action of~ ''Trust C" ,~ for the Federal estat;e~~tax mar~~tal^~~deduction.~ The ~~, ~ decision of Trustee witYr r.espec~r,~ta the exercise of ~~ >~ ~. the electian;~'~shall be~`fina2~; and ~~Tusive upon~~~all ~~, :~ ~ ~t persons whole i~~terest:~ in `°~aenefi,;ary's estate'~or this Agreement of Trust are ~3irect~ry, or indirectly affected by the election 'QrrS.y property which is fully eligible ~~_or~ahe marl€~~deduction under Federal _. ,:p.~~ j estate tax law s.hall?:be assigned to this Trust. Notwithstanding anything to the contrary contained in this Agreement of Trust, Trustee of this Trust shall not retain beyond a reasonable time any property which may at any time be or become unproductive, nor shall they invest in unproductive property. Notwithstanding the provisions of subparagraph (b) of this Article, I Trustee shall pay to the Executor of Beneficiary's wife's estate, out of the principal of this Trust upon the death of Beneficiary's wife, an amount equal to ~ the estate, inheritance, transfer, succession and ~ other death taxes ("death taxes"), Federal, state and other, payable by reason of the inclusion of the value -lz- of Trust property in Beneficiary's wife's estate. Such payment shall be equal to the amount by which (1) the total of such death taxes paid by Beneficiary's wife's estate exceeds (2) the total of such death taxes which would have been payable if the value of ~ the Trust property had not been included in her estate. The determination by the Executor of Beneficiary's wife's estate of the amount .payable ~~.4,~ i hereunder shall be final. Beneficiary~dire.~cts Trustee to pay such amount promptly upon written request or" the Executor of Beneficiary'~_s' ~ri.f'e's estafi.~:: The -}:~ final determination of.. the amo~t~.,due hereunder shall be based upon the valuen~as fina.Zlyt'determined for Federal est~;-,e tax gu.rpa~e in B`ene~ciary's wife's i "~ F, ~~ a~~;: ~`~- Via. i estate . A~e.~~payment. of the amount;:=f finally j determined ~to b~e~ due herreurxder, Tnu tee shall be ~ ,.r .~ discharged om any further liability with respect to such payment :~,.Beneficia~~~~:,c~ife may waive her estate's right"~`~.o ;payment uz~d'er this subparagraph by ~~ n Will, executed after'Beneficiary's death, in which she ~~ :_ specifically refers'`Vto the right to payment hereunder given to her estate. i ARTICLE VI. The following provisions shall apply to each Trust established for Beneficiary's children ,' DONALD L. YORLETS and NADiCY LIVINGSTON, pursuant to ARTICLE ~ III(c): <a) DONALD L. YORLETS shall serve as sole Trustee of the Trust established for his benefit and the benefit of his issue, and NANCY LIVINGSTON shall serve as sole Trustee of the Trust established for her - 13 - benefit and the benefit of her issue. Each shall have the right to appoint a successor Trustee by Will or by a written instrument delivered to the successor ~ Trustee. (b) To the extent that each child of Beneficiary has not received, after the death of the survivor of Beneficiary and Beneficiary's wife, a distribution aggregating at least Two hundred Fift Thatrsand ($250,000.00) Dollars from "Trust C", ~e T~zustee shall distribute to such childu~om the ps~incipal of this Trust that amount.,of the~lx~,ipal of~`~his trust ~~ ~' which, aggregated w~~'~~-s.stribi~,i to such ,child from "Trust';', sha ,.eq.l Two~u ~ed Fifty Thousand F'3e-vS r'. g~Hq ~if a ($250,000 ~Q~~ D`gllars'~ ~~,, t ~~~~ ~ ° ~~ rv ~ ~ (c) During the li~.time..2of Be~ficiary's child, ,~ Trustee shall. pay ~;to suc~~~~t.~d all of the net income from his or herM~;trt. w~ } _;~~ 1 ~a~?; v ,#,~~, i ~, t ~,~ (d) During 't`°£~lifetime of Beneficiary's child, Trustee shall pay to or for the benefit of such child so much of the principal of said trust as, in the discretion of the Trustee, is necessary for the proper support, maintenance and medical care of such child. (e) Upon the death of the child of the Beneficiary, Trustee shall convey and pay over all of the remaining assets to one or all or less than all of j such child's spouse or issue (and for the purpose hereof, an adopted child shall be considered to be the ~ child of the adopting parent), or such charities as I the child of the Beneficiary shall have designated, in such amounts or proportions, and in such lawful - 14 - ' interest or estates, whether absolutely or in trust, ~ as the child of the Beneficiary may have directed, I specifically referring to this Power of Appointment, j either by instrument filed with Trustee during the child's lifetime, exercising this Power of Appointment, or by the child's Last Will and Testament. (f) If this Power of Appointment is for any ~;~~.: r~, reason not validly exercised by the ch,~ld ~caf the Beneficiary, in whole or in part during£~th~;,child's f . lifetime, or in the child's:L'ast-Will anc3:fil~'eatament, r., ~'~~ then upon the death of the c1r~.Ld~ ~czf the Benieficiary, Trustee shall convey ax pay over~sruch inte~e is or estates the~e~in as hade"~riot been, validly appo~rnted tr ~„ absolutely in fee -'simgle to tha child's there .~ ~~,~, ~r, living issue, gc:r sti~res ~ ' Y '~ u ~, ~ ~ ~ '; (g) In `no ev:~ent malr~al Power "of Appointment be ~ % ~ ~~.~ exercised in f`anor.~~o-f the d of the Beneficiary, ~..> ..,:~; . - child's estate or.the creditors of either. ARTICLE VII: No part of the income or principal of the property held under these Trusts shall be subject to attachment, levy or seizure by any creditor, spouse, assignee or trustee or receiver in bankruptcy of any beneficiary prier to his or her actual receipt thereof. Trustee shall pay over the net income and the principal to the parties herein designated, as their interests may appear, without regard to i any attempted anticipation, pledging or assignment by any beneficiary under a Trust, and without regard to any claim thereto or attempted levy, attachment, seizure or other process against said beneficiary. - 15 - ARTICLE VIII: The Trustee shall possess, among others, the following powers e:~ercisable only in fiduciary capacity: (a) To vary or to retain investments, including the stock of any corporate Trustee named herein, when deemed desirable by Trustee, and to purchase, sell and invest in such stock options (including covered ,~~< calls), bonds, stocks, notes, real estate mArtgages or securities or in such other property,~re-a1"~or personal as Trustee shall deem wise, Gzxthout being= r~e tricted to so-called "legal investments" `and without being limited to any statutyev;~dx, rule~,of I.aw regarfldi:ng investments.- fiduci.a~rie~s. . ~~; x, (b) L `or`der to ~.effe;. a di~sSion of the u principal of.~'a Trust ors £or y othepr purpose, ~~=, _ ~ ; including any~~~£inal, dist~hu~~on of ~a Trust, Trustee F .~~ , :. ~h~:; is authorized tof make said` "d"n~ccisions or distributions of the personaltg°'~~.and~. realty, partly or wholly in °'~~w:~~ kind, and to allocate specific assets among beneficiaries and Trusts created hereunder so long as the total market value of any share is not affected by such allocations. Should it appear desirable to partition any real estate, Trustee is authorized to make, join in and consummate partitions of lands, voluntarily or involuntarily, including giving of mutual deeds, recognizances, or other obligations with as wide powers as can be exercised by an individual owner in fee simple. I (c) To sell either at public or private sale and upon such terms and conditions as Trustee may deem it ~I - 16 - advantageous to a Trust, any or all real or personal estate or interests therein owned by a Trust severally or in conjunction with other persons, and to consummate said sale or sales by sufficient deeds or other instruments to the purchaser or purchasers, conveying a fee simple title, free and clear of all trust and without obligation or liability of the purchaser or purchasers to see to the application of the purchase money, or to make inquiryxintex the validity of said sale or sales; also,~'~~ Vie, ~~, execute , acknowledge and delLVer: any and' a ~ 5', deeds , assignments, options or otherm ~~.tings whrd~,may be necessary or desiral~re~~`~ carrging`out any t~;,the powers conferred upon ~stee in_thr"s, paragra~;h or e l s e wh e r e t.n., ;~fri s i n str um'`es~.t . ~"°~~;~" (d) Ta of real esta Trusts hereu rtgage real ~~;. extend i n~:~; ~~~. r . •~ v.: ate,'and to make leases nd the f'term of the (e) To borrow =money from any party, including Trustee, to pay indebtedness of a Trust and taxes, and to assign and pledge assets of a Trust therefor. Provided, however, that this paragraph shall not authorize borrowing from "Trust b" or "Trust C". (f) To pay all costs, taxes, expenses and charges in connection with the administration of a Trust, including a reasonable compensation to agents. If any estate or inheritance taxes are payable from assets received by Trustee, such taxes shall be paid from the assets constituting "Trust A". - 17 - (g) In the discretion of Trustee, to unite with other owners of similar property in carrying out any plans for the reorganization of any corporation or' company whose securities form a part of a Trust. (h) To vote any shares of stock which form a part of a Trust. ~~~". (i) To assign to and hold in trust an undivided rr# t`. portion of any asset. '" (j ) To employ and compe°ns:a+te._investm~en. advisors, attorneys~~accounta~sts and. other ad~zisors ,~ x~', a and agents to assist: Try` tee ii;the performance of their dutre.~~xeseunde-r, whether o~ rtot discretanary; 'pia"' `c `.. „~ n„,,,~;. ,. : -...~' ~~;:: Trustee ma~"=Fdel.egate discretion t~,x:one or more of such ;, advisors ~: ., n~, ~. x ~ kk 4 S *`~ w'i N'~ y^ (k) To da all;-,otherae~s in its judgment deemed necessary or desirable for the proper and advantageous ~, ~, ~: management, investment and distribution of the Trusts. ARTICLE IX: Whenever and as often as any beneficiary hereunder, to whom payments of income or principal are herein directed to be made, shall be under legal disability, or in the sole judgment of Trustee, shall otherwise be unable to apply such payments to his own or her own best interests and advantages, Trustee may make all or any portion of such payments in any one or more of the following ways: (a) Directly to such beneficiary; (b) To the Legal Guardian or Conservator of such beneficiary; - 18 - (c) to the Trustee, or to another person selected by the Trustee, a custodian under the Pennsylvania Uniform Transfers to Minor Act as to beneficiary; under the age of twenty-one (21) years; (d) To a relative of such beneficiary, to be expended by such relative for the benefit of such beneficiary; or (e) By itself expending same for~`the~`benefit of -,. said beneficiary. N~ rt ~,~F~. .~ ~~ ~„ . yna~p~',by,v'~r. ~ va This provision shall na~~a~agly to y~.istributzons from "Trust B" or "Trust C", Bene c`za~i's w~~~, ROTHY S r ~YORLETS. ~,9~. - ,~,. , ARTICLE"° X°.~~ r I"t"r is aor:.~2d that Grantor may, tee: during the life~.me of Benef.~ciaiy, by~~nstrument in writing f ~ delivered to Tru"s~.ee, mod ify~°~„,~altrer or revoke this Agreement in <~;~w. whole or in part.~;.~r ~ ded, Y~ow~ver, no amendment, modification, alter-aatrt~n~;or revocation which has the effect of ~" -;' violating any provisi°exr~ of the Pennsylvania Probate, Estates and Fiduciaries Code, or any order of the Court of Common Pleas of Cumberland County, Pennsylvania shall be permitted. This Trust shall become irrevocable upon the death of Beneficiary. ARTICLE XI. D1o Trustee acting hereunder shall be required to give any bond or enter security. Iv'othing herein shall be construed to relieve any Trustee who is also a Guardian of the estate of Beneficiary from giving such bond or entering such security specificially ordered by the Court of Common Pleas of Cumberland County, Pennsylvania. ARTICLE XII: Grantors, or the survivor(s) of them, shall have the right but not the obligation to appoint an - 19 - I additional Co-Trustee to serve with them or upon the death, resignation or discharge of any Trustee, by delivery of a i writing signed by persons then serving as Trustees delivered to the additional Co-Trustee. Any Trustee so appointed which is a financial institution shall be subject to removal by written ~ notice from the then Trustees serving hereunder. IN WITNESS WHEREOF, DOROTHY S. YORLE LIVINGSTON, and DONALD L. YORLETS have henenur. ~, hands and seals as Grantor and DOROTHY S. Y LIVINGSTON, and DONALD L. YORLETS,~~ha~e offer ~' ~ _~'~< seals as Trustee all on the., day an.~ r firs Witne witness ~~ J X411 1.~, ~' ,i l \ L ~'~ ` 'tness .~ / --~ ~ ,_ ~:. ~7;, Witness ~- ~,~,~~ r. ' Witness fitness NANCY offered their CS, NANCY their hands and bone written. ~~, '.~-3rx ~+ a' _ ~~ J-' ~ ~ ~~ (SEAL) Y »~;YOR' TS,~Guardian of tate~°;~~?;f John C . Yorlets , Jr . ~,., ..~ C.aq' //I.lc.~-~'`r~ - (SEAL) NANCY V NGSTOL~; Guardian of the Est to of John C. Yorlets, Jr. i Ir ~ ~.LG~ ' 'fl.~-~''~"' ( SEAL ) DONALD L. YOR ETS, Guardian of the Estate of Joy C. Yorlets, Jr. TRUSTEE: %L~ "ce~"~`'~ r~ ~ ~~~~ C SEAL ) DOROTH'i YORLETS ~,uc.~ (~'~./~ '-`-,P~/~^-' (SEAL) NAD Y IVINGSTO LL "'' .L:~ `~ '1.(.C `-- ~ (SEAL) D61~ALD L . YORLE S I ' COMMONWEALTH OF PENNSYLVANIA SS: COUNTY OF ~~ On this , the ~~ day of f 2ty 1995 beTore me, a Notary Public, the undersigned officer, personally appeared DOROTHY S. YORLETS, NANCY LIVINGSTON, and DONALD L. YORLETS, known to me (or satisfactorily proven) to be the 4„ persons whose names are subscribed to the,witfi~~"-n instrumer_t, and acknowledged that they executed the samae`fi~r the purposes therein contained . < ~'~~,~°.,y:,, ~~~ ~~- IN WITNESS notarial seal. I ha~~heeunto set~~ my hand ar_d ~,'~,~otary Fubiic~ '~,'_ ' mmiss~on Expires: ) NOTARIAL SEAL JACOUHLINE A. 2lNN. NOYAIfT PUBlJQ NEW OXPOR D, wowM~ counrr, pw. ' MY COMMIBBIGM ncPIRfi9 wua e. i~ue IAi P.E : ESTATE Or JO?~~i C . IPi T E COtT'.T OF CON220N PLE_=5 , YOP,:.,F'TS, Jr'.. , a_^_ Inccr:Det=_nt CU•I3EP.LPiTD COLiNTY, P~~.I~TiVSYLV?1~1I ODP =FNS' COLT DIVISIODi DiO. 567 O ? _-~i5' COU:T 1°O_ PETITION TO L?~i~E~TLr{E'CEP.T_ 1~i rCTI0N5 PTTr.SJr1~1T TO SECTIODiS 5536 ?~1, 5537 OP TF_E P~iD75YL"J?mil= pD0$]TL, EcTa'__S ~~17 FIDL'CI?PIES COLE To the Lcr_ora;1°_, t..e J•_- _= o= said C=u=.• ?~iD rio :'1 C~_.T_C D~?'_'_.J~~i~7 D -_! "mil -O LOr_al.. _. Yo_l~os end Dra_^_c~r L-'ri='=s=o^, CO-Gi1~'_"C?.~__n C= '__c D°=50I'_ F= ` _=_'__ o= JoiLn C. Ye_1ets, J= _ their atto__^_=ys, _'~=t~- E~IGns u _ , v'i00051Ce, anC respeC~_~__y =cD'_'~.5=nC5 t. a=: 1. JO'_''r- C. Yorl~...i, V Y. ( 11Yorl~.S" ) ~4GS C°C1Gr C Zr 1r~COIilDeteTt anC PetltlGnerS Wer° aap0lnteC Gue.C=~^_ O ~.5 De_'SO and es~ate by deCrE° O. t"'_S COL'rt dzted OCtC.^,er 31, ],ocl . 2. YOrlets 15 2'==_C1_^_Q Ztc Cr'OllD ~"!GIP.~ md1?2tZ=T:e^.. ~..'_i P_lternatives in Com-nunit_ Treatme_^.t, I_T?C . , Fi_''_? CI! C~OllA ~?Omz '_5 located at 7 Pamela Dri'v=, i?2^_}1anlCSiu:C. Pc^^S'/1V~^.1c 17Q5:. . 3 . Pet_t10nErS i:!:C=ti1t~C all cCt'_On O_^_ Dc_^_G~ ~ OL YO_'_e=5 '_' t.:°_ COLE: OL COIL'LLILC'='_ Pl°-= O_ C!'!.St°_. COU_^__~/ (G^.~.1On C. =. L1C. 91-0951 /) t0 r CO"i=_ C~»aC=S fOr 1-.^~u=1eJ Sis___"__ ,~_i `_'~_1___ _ coru_e~t_on er__ a r„o~__ .~___ a_ c___t __._ ..a __ o_ __~ 5. P2__C_GP_c.5 r:..=, SuD]=Ct tG C_^_3 cCC_O:c: G` Sc.^ ~_':_ _' aCreed t0 Sc _ _1v Sc1C cC __C c LOr c C_ vSa Sc _ _ ~ °__..e^ : O _ $2, 000, 000.00, c5 ~~r~_c ~_, 32°, 15^_.53, 1e== ce.Ca.-- °-'=~e_^_se= ;c =-c hatTe been pay C on Lieha ~ _ 0= YGrletS LOr mea_cal anc C'15COC1G_ 03_'c, plus accrued income, s_^_al1 be pGid to Petiticr._rs as Yo=lets' Guardian. (thy "Settle-.e-t P_oce~ds") . 5. In addition to t:_e Settle_^..e_^_t Proc_eds, assets cu=re-_1-,- bald b_T Petitioners on bahalf o~ Yorlets ccns_st o'_ t^e fc11c•.._-c motor vehicles: 1°70 Dodge Truck 1°77 Chevrolet Truck 6. Yorlets owns jointly, caith his wife, Dorot_; S. Yorlets, the following assets: a. One honored siY (106) acres o= real es=ate with =o.:," barn and outbuildines thereon erected, situtat_ in Silve. Spr 1ng TG~VnShi p , Cu:;;oerlana' Cou.*ity, Pe^.T!S y 1Vania (t ~~ ° Fa.- ° \ . Said real estate is operated as a far•_n by Dorct~: S. '?cr_ets. b, various f_~ e _v.ipme^_t. -. v=rious h=use: old fur-is^incs. c. Cer__='ca=es of D=pos=~. t0.k Fed=_~_ $a'v= _Gr5 a:?d L Oa:7 - ~=~, ..'~l7 (~-~'--`.... heckin ^d r? ~~ -~ - O . C __C ~_. On~ T Z?ar:CCL aCCOL'~ __ . York Federal SaVings a_^_c LOan - $20, 000 ( ~p =~~::1 PD1C Ea.*ik - $ 3 , 0 0 0 (_ppro:c . ) First F_^_ral Sacrocs a_*~d Loan - $~,G00 (r_pp_o:~:.i f. NLutual Fty^_d: ~~iellingtc:: Z?utual Fund - $S, 600 (%p~rc:~:. ) 7. YO=lets' eSti^ated cnnual 1nCOLilE CCnS'_St5 0=: a. Social Secu_it_: of $0'01 per sora^. b. On°_ hat= (_i ~ ~ Gf t^e Ci'v1Cc_n.L"', a Q 1.^.==rest 1_^_C.^,'c C= _ _ _ ~ , ~-_-- nco_ the as~e.S lis tCd i. '~aragrap^. 6. 19°, Lam; c i ma •;;^= X17,073. ,- c. G_^.e hal_ ~_;'2} o= t=e ircc:.:e f=c== ==---='= c=====-_--= G. T_ CO.T_ t~ ...e Gari VcC! __O_^.. __OI1 J=_~.1c_..~___ ~- ~ ~. ~ ~? PrOC°_=Q5 (c5 `.1IAatEC .:.= Ll'i_ (moo) p2=Ccn_ G= $_,OOG,~ U~, - $50,000. et= i -+=r ec-in- nn 1 aneae V,^~^1 °_t5 t0 Cc c5 ~. P-_~t O,.__5 _ cte a__.ua_ e:!_J.-.__.._- LOr ..,~ OIlO•.VS - 2 - Prescription ~•-ucs ~.lternativ2s in Communit_r Treat_*=ent, 2r_c (housi ng, m~alS, r°hab113.tatiVe ti??=a~~r, e*_c . ) Tllt`rCa1 9=-r° _•'- =Cr' i °--:__CG""= n'---=r .._. _ ~.c J C ~..... -~-~-- D aryns Jl'va n'_G T~eTJar t:Sl°nt O z=~: e_^_L'°-- T_ACOIIle to:{c= r?°C1Ca1 1:1:~:_c .C. Pre:tiil:.:ts Cozen ce_ .::ad__a=_~=__ a_^_c s~=^:__a_ ate- -=---=s ~.~:C: aJ Cc~_-^_c-=_S ~^_C c~Gtl~ _ ~-=_.c_=.. C_-... C~_ _- r~_s~_1_...._-i.. ~ _:~L~ $ 2,x00 12^_, 100 ,~_- :nrlo-~ ?n ~° - _ _ rare ~ r::a -, __ ha- _ -- re a-_,- ____~s - - bee-- s=- - - _ a~_ce _.. _ -_ such e:{~enses . 11. Yorlets' in Ccm~ i s ir_su=i_c.=_n= to c_scha__- or^i a. __ _ necessar~r E:~e_^.S~S t0 I~.d'__^.t~'_Il `1Orle~.s w_C t0 L=0V1.C= L:~= I:=S burial. ~.~. :Orlets e:{eCL't~^ a Last TP1111 anC'. Tes~a_-1eS!= C.~=C L°_Cc _'_- ~~, 19°0, a t=U.e aP.~ CG=:°Ct COD?r O~. Lvi._Ch ?S cttaCh~C Y1°__==•O c.-^ L^.aC°_ a DcrL ~? ~rcO i a5 P..:•:h_b_ t ° ~-" ~:. 1'f?~ CrOSS -va_l:c G_ YO_1c_.~ c=oc_-, ___Clac-- _°_ - r .LC ~~ iCrl ais G _. -~ LV~-r-. ~iC-~ l.G G.- • __-_.'.__ r'-_...__ -..._.__ .iGlilG be Dc'ia~la. lOr_c=.=. c~`.~~°_ L--' S'-:~L__ _.c _-.•'1-= - -^_- __- _-_ G__-- __ h_C .._=e. (1) 10 e.:ae-c SllC}'! aRtOL'^ts O. ;^CC'° a L. 1_^_C_Ualcs P.c•_i I~C;•; G_' i ~; tnc iU`.L'~ `. C~ ':c^°sSdC', t^_ - ~ - pay the reasonable costs of Yorlets' prescription ar11QS, rOOa^:, boarC., r2_^.a1J111tdt10P_, R1eQ1Cd~ SZr?J1Ces, inCOIP e ta_:°S , D°_rs0^al e.{penS25 , anC Oth°_r :Il~^riC~.~'_ anQ cental e:ti-oenses . (i i ) To establish a ~eVOC~le =aree~-,e-a c. '^r;a_ o= :da_i ch Yerl.ts an4 his .,yi Te, Do_othv S . :o_1=.= _ -. S ~ ~ b~ t= IJc_^.°_~iC_c?'1=5 G':T_:?7 t =~i T ~0='C 1LC:.1~°_S, :•ii11Ci^. Sic. ! COnt1P_L1° L0= L = ,Cc =_-_- C'- rloroth'_r ~. YorleLS s ou1c S,^_c S~_ ~_°l= YOrle=S, a-= 'v; .. _.. i_ ~i y- ~ v _C= _.._ °'r°__^.Lll a- G_S'vG.=1 --.... v. aSac _: -... 1.-.. .V .. L~_. -r - - G.. ... l7rvG..... ~1-..... ....--`..- ..-3. _.- ..._ ~ .w---SCE - .._~ LaSL ~'/___ ...__ ~---~..-_ - C_.c DrOvOS=_ :.ciOCa/_= ~-?L:Ci~~L C. r'-~=- _3 G__a-_.~: (-__) rv _ - _- bLt rot lir_te~ to tha t_^.~1Sc1Ve5 cS liL'S_=== - , Settle~e Procee~~, L~ ~..! G- 1.~.- Z=0-...'1-..~_~..-_ - .._ - `t0-1eL5 ~ C°°_C 52Vc..P_C th2 tE?1a.^_C~+' ~iJ t_^.= =_.C--=-;e~ OL YOrI°.S 1n the Fc__T:, SO that YOrletS c^.G h_S ..__ , DC.Ot_':'•r C. VO=lets, ~.~___ O:•,T: G.^_ U:"!G_JiG=C C'=-'C'_~~ -rr i r -i ;fir=ra =^ c~'n F- ., Coc_c_ ~ tc *_^_= Las= ..__- a _~ ^~SLa_-.e_-- c. _c'._..s -- L.:-.-. Lei -..: G.- .~.r ~Q r--DLO a r 1:..^..~C aTiG-L ~ ---..~ ..- ~ r t c ..c iOC a~l@ =C".=:".=` = G= iT'1S _ c _ iv_ II ^ :1 ("J=) TO _5=~~_'S c fL:_ ~Tal r~Sc_':c LL'.3..c_^_~ - L S=Ct10:": S~~ % O: t:^_c =c:'aSV1Va:?=3 PTOJ7dt_, "`ctc5 °~?'_C t:GL:C'_2.ri== CCC:c 1G t_^_° G~iIOL'~O 0= ,SH, O00 _„= t.^_S a L.C.:atcC °' ~c_*!SE. O. _O.l~ts L'1'°-='3' _' ! ...- `~ COSL C. a ~uT;al lOL. _ ~ _ (vii) '1'o perZit Petitioners, on behzlf of '~Orlets, tO make gifts Of und1V?ded lntere5t5 1.^_ the Farm to a class composed of Yorl_ts' issue, each cift in each czlendzr year riot to e.tice_d Yorlets' annual exclusion from t_^.~ fe~~rzl cif. t~_•_ permitted and=_r Section 2503 (b) c= the 2nt»-nzl D oZ~7°Tll° Coae O. 14 ~ c , aS ailenC~C . i- r1 - • i- ,~- _ :- _ ~~ _.) ...r __- ~, _ . ~ . = n _ _ % _i __`tdr__-JS .v. Yom--.10 c_S ~,,,u ~ 3 ! S 5 ~ Date : ~ c.,,. :.Gc-~, .~ VERIFIC~ITION DOP.OTFf S . YC?.LETS , rr?rrc't L ' JINGSTODr arc iO~i:..LD L . ~ 0?.LETS , t^e Pe *_itioners 1 t}"!e LOTe'SO ~P.g P.d `~.t~=, .Stmt= _:ct t_^_° L?Ct5 __. t o foregoing P°ticior_ a=~ t=ue to t^~ tes_ c= ==-e== rzo~+l=_~c°_. i^To~-station a~.c belie=. T_`_i s s=ate~ent i_ r!a~= su~~ ec = t= __-_ Dc''_'lZltleS O° ! ~ t3. C.. ._ ? 594 :al~__ G __ .-~S:':v=' als=r=caticn to a-~~c._=_==- _oc SIG-lI.-J ~~ /~ ~..~-- CE TIFIC_?TE OF SE'VICE =0l lTOT'A1P+_C }~`% C°_^OSlt1T_C c t2-ll~ 2*1C1 CO_=°C~ Cv~~: O' __^-°_ Sc~uc __- t C lJ. .7. 1r~G~~ Q~ ~.^,+~-~J...~=Q, YE^115VZ.~ic_'1~Gr _ O.-'.=2.Cc CLcDG'_Cr Y.Z. r~.C.. .c,. ~/^.. t~ _ __ __ = _ _ '(///r/// ~ //~r rT7 DiO~:i, t__^_is ~ 3 c=._t o= J 4/1c.cLC,C~ , 0~5 I horn ;.: r - r '_LV tict_ Pd-v'c S~=V=J. c CODV OL t^ :v.t:i_^_ GOC'~'i12_*lt O ~/~ c ~ ----= ~ I l l •' J ,. 1 i~:~ , IN RE: IN THE COURT OF COMMON PLEAS OF ESTATE OF JOHN C, YORLETS, JR., CUM$ERLAND COUNTY, PENNSYLVANIA an Incompetent ; ORPHANS' COURT DIVISION NO. 567 ORPHANS' COURT 1991 ORDER OF COURT AND NOW, this 2~ day of March, 1995, following a hearing, IT IS ORDERED that Dorothy S. Yoriets, Donald L. Yor1e#s and Nancy Livingston, as Guardians of the Estate of John C. Yoriets, Jr., are hereby authorized. to undertake the following actions on behalf of John C. Yoriets, Jr.: (i) To expend such amounts of income and principal as may now or in the future be necessary to pay the reasonable costs of Yoriets' prescription drugs, room, board, rehabilitation, medical services, income taxes, personal expenses, and other medical and dental expenses. (ii) To authorize Petitioners to execute a Codicil to the Last Will and Testament of Yoriets in the form attached hereto and made a part hereof as Exhibit "A", which Codicil provides for the distribution of Yoriets' estate to the Trustees under the Revocable Agreement of Trust set forth in Exhibit °B". (iii) To establish a Revocable Agreement of Trust cf which Yoriets and his wife, Dorothy S. Yoriets, shall be the beneficiaries during their joint lifetimes, which shall continue for the benefit of Dorothy S. Yoriets shcufd she survive Yoriets, and which will provide for eventual disposition of assets remaining in the Trust in accordance with Yoriets' wishes as expressed in his Last Will and Testament da'~d December 29, 1990. A true and correct copy of the proposed i /' Revocable Agreement of Trust is attached hereto and made a part hereof as Exhibit "8". (iv) To permit Petitioners, in their discretion, to transfer assets of Yorlets, including but not limited to the Settlement Proceeds, to themselves as Trustees of the aforementioned Trust. (v) To permit Petitioners to execute on behalf of Yorlets a deed severing the tenancy by the entireties of Yorlets in the Farm, so that Yorlets and his wife, Dorothy S. Yorlets, each own an undivided one-half tenants in common interest in said Farm. (vi) To establish a funeral reserve pursuant to Section 5837 of the Pennsylvania Probate, Estates and Fiduciaries Cade in the amount of $3,000 for the anticipated expense of Yorlets' funeral, including the cost of a burial lot. (vii) To permit Petitioners, on behalf of Yorlets, to make gifts of undivided interest in the Farm to a class composed of Yorlets' issue, each gift in each calendar year not to exceed Yorlets' annual exclusion from the federal gift tax permitted under Section 2503(b) of the Internal Revenue Code of 1986, as amended. Petitioners may not amend the Revocable Agreement of Trust referred to in paragraph (iii) of the Order without approval of this Court. _^^~ By the Courtt, ~ , ,~' . Ec'ear E. 8'ayley, J. SELF-CONTAINED APPRAISAL REPORT 105.46-ACRE INDUSTRIAL PROPERTY 401 MULBERRY DRIVE MECHANICSBURG, PENNSYLVANIA PREPARED FOR THE ESTATE OF DOROTHY S. YORLETS BY LARRY E. FOOTE DIVERSIFIED APPRAISAL SERVICES 35 EAST HIGH STREET, SUITE 101 CARLISLE, PENNSYLVANIA 17013-3052 (717) 249-2758 TABLE OF CONTENTS PAGE NO. Table of Contents ........................................................................................................2 Letter of Transmittal ................ ............................................................. Summary of Important Facts and Conclusions ...........................................................4 The Valuation Process ................ .........................................................5 Appraisal Certificate ........... Intended Use of the Appraisal ...................................................................................11 Location Analysis .....................................................................................................12 Zoning ................................................................................... ....................................15 Ownership History ............................... .....................................................................19 Estimated Marketing Time .......................................................................................19 Economic Trends ......................................................................................................19 Site Description ........................ .................................................................................20 Taxes and Assessment ..............................................................................................21 Highest and Best Use ................................................................................................22 Cost Approach .......................................................... ................................................26 Sales Comparison Approach .....................................................................................29 Income Approach ................. ...................................................... Reconciliation and Final Value Estimate ........................ ~•~"""""""""•••..43 ............................. Underlying Assumptions and Limiting Conditions ..................................................45 Certificate of Appraisal .............................................................................................48 Privacy Notice ...........................................................................................................49 APPENDIX Qualifications of the Appraiser Photographs Location Map 2 Diversified Appraisal Services Real Esfate Appraisers and Consultants 35 East High Street Carlisle, PA 17013-3052 (717J 249-2758 FAX (717) 258-4701 August 7, 2009 TO: The Estate of Dorothy S. Yorlets FM: Larry E. Foote RE: Self-contained Appraisal Report 105.46-acre tract of land 401 Mulberry Drive Mechanicsburg, Pennsylvania At your request, I have appraised the captioned property. The appraisal report, which follows this letter, is submitted in support of my opinion of Market Value of the Fee Simple Interest in the property, as of February 6, 2009. I hereby certify that, to the best of my knowledge and belief, the data, facts, and opinions set forth therein, are accurate, subject to the Statement of Assumptions and Lim- iting Conditions that is also made a part of the report, and that the indicated Market Value of the subject property, as of February 6, 2009 is: FIVE MILLION FORTY-TWO THOUSAND DOLLARS $5,042,000 This appraisal has been made in conformity with the standards of professional practice of the National Association of Realtors Appraisal Section. I appreciate your hav- ing considered me for this assignment and trust that you find the report entirely satisfac- tory. Respectfully submitted, Larry E. Foote Pa. Certified General Appraiser GA-000014-L SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS LOCATION: 401 Mulberry Drive Mechanicsburg, Pennsylvania TAX PARCEL NUMBER: 38-08-0567-013 OWNERSHIP: Donald L. Yorlets, et. al. LAND SIZE: 105.46 acres. ZONING: I1, Light Industrial District and R1, Residential District. FLOOD HAZARD DATA: The majority of the site is not located in a FEMA identified flood hazard area according to map #420370-0020-B. PROPERTY RIGHTS: Fee simple interest. SCOPE OF ASSIGNMENT: The scope of the assignment included an analysis of the subject's area, an inspection of the subject property, an es- timation of the property's highest and best use, considera- tion of all three approaches to value, and the application of those relevant to the valuation of the subject. IMPROVEMENTS: Deteriorated dwelling, barn and other farm buildings. OBJECTIVE: To estimate the market value of the subject property as un- encumbered. USE OF THE APPRAISAL: To assist in settlement of the estate of Dorothy S. Yorlets. EFFECTIVE DATE: February 6, 2009. HIGHEST AND BEST USE: Use as a site for construction of industrial and residential buildings. COST APPROACH: N.A. SALES APPROACH: $5,042,000 INCOME APPROACH: N.A. VALUE CONCLUSION: $5,042,000 4 THE VALUATION PROCESS The valuation process is defined in The Appraisal of Real Estate as published by the Appraisal Institute, as "a systematic set of procedures an appraiser follows to provide answers to a client's questions about real property value." It consists of a series of steps that are appropriate to a specific and particular ap- praisal assignment that begins with a client engaging a real estate appraiser to develop an opinion of value for a specific property as of a given effective date and ends when the appraiser communicates and reports the final conclusions and opinions to the client. Definition of the Appraisal Problem: The first step in the appraisal process includes the presentation of the following: 1. Identification of the client, the intended use, and the intended users of the ap- praisal report. 2. The purpose of the appraisal, including a definition of the value being reported. 3. Determination of the effective date of the appraisal report. 4. Extraordinary assumptions that are applicable to the appraisal assignment. 5. Hypothetical conditions that are applicable to the appraisal assignment. Scope of Work: Scope of work is defined in the Uniform Standards of Professional Practice as be- ing "the type and extent of research and analyses in an assignment." This includes the 5 degree and extent of research and the data that is deemed as necessary to develop a credi- ble opinion of value for the property being appraised. Data Collection and Analysis: The appraiser must gather and analyze market area data, subject property data, and comparable property data that is relative and relevant to the appraisal assignment. Development and Application of Traditional Approaches to Value: The appraiser must consider which of the three traditional approaches to value are applicable, relevant, and necessary for developing a credible opinion of value for the sub- sect property. These three traditional approaches to value include the Cost Approach, Sales Comparison Approach, and Income Capitalization Approach. When two or more of these approaches to value are developed, the appraiser must determine the amount of emphasis and consideration to be given to each of those approaches to value, since one or more may have greater significance in the appraisal of a specific property. Reconciliation of Value Indications and Final Opinion of Value: The final step in the valuation process is the reconciliation of the value indications developed by the appraiser. Reconciliation is the analysis of alternative conclusions to arrive at a final value estimate. Reconciliation is required because different value indica- tions result from the use of multiple approaches to value and within the application of a single approach. The final value estimate is not derived simply by applying technical and 6 APPRAISAL CERTIFICATE I hereby certify that upon application for valuation by: THE ESTATE OF DOROTHY S. YORLETS the undersigned personally inspected the following described property: All those certain tracts of land, with the improvements thereon erected, situate in the Silver Spring Township, Cumberland County, Pennsylvania, more particularly bounded and described as follows: TRACT NO. 1: Beginning at a stone on lands adjoining H.P. Miller Estate; thence North 63 %z degrees East, 187.4 perches to a stone; thence North 28% degrees West, 70.8 perches to a stone; thence North 56'/4 degrees East, 1 perch to a stone adjoin- ing lands of Snavely's heirs; thence by land of Snavely's heirs and A.B. Brubaker, South 28%s degrees East, 114.3 perches to a stone; thence by land of said Deitz's heirs, South 14 degrees West, 57.7 perches to a point; thence by lands of said Deitz's heirs South 25 de- grees East, 34 perches to a stone; thence by lands of said Deitz's heirs South 23 degrees West, 28 perches to a post; thence by lands of R.H. Thomas Estate, North 35% degrees West, 60.4 perches to a stone; thence by lands of said Thomas Estate South 573/4 degrees West 79.3 perches to a post; thence by lands of H.P. Miller Estate 293/4 degrees West, 51.7 perches to a post; thence by lands of said Miller Estate South 66%4 degrees West 29.5 perches to a point; thence by lands of said Miller Estate North 42'/4 degrees West 34.4 perches to the place of beginning. Containing 88 acres and 10 perches, more or less. TRACT NO. 2: Beginning at a post of lands of Robert H. Thomas Estate and John M. Myers; thence by said lands of said Robert H. Thomas Estate South 54% degrees 8 West, 49.81 perches to the center of the Pennsylvania Railroad; thence by said Railroad North 50%4 degrees West, 31.92 perches to a point in the center of said Railroad; thence South 54%2 degrees West, 15 feet to a point on south line of said Railroad; thence by said line North 50'/4 degrees West, 16 perches to a point; thence North 55%2 degrees West 8 perches to a point; thence North 58 degrees West, 7.44 perches to a point; thence North 63 degrees West 13.6 perches to a point; thence across said Railroad and by land of John M. Myers North 60%2 degrees East, 78.92 perches to a post; thence South 31 degrees East, 60.8 perches to a post at the place of beginning. Containing 25 acres and 136 perches. Less, however, that portion of the said tract containing 8.45 acres contained in the conveyance of the said John M. Myers to the Cumberland Valley Railroad by deed dated January 31, 1903, and recorded in the Recorder's Office in and for Cumberland County in Deed Book "B", Vol. 7, Page 83, the said tract so conveyed being taken in its entirety from Tract No. 2 with the exception of a small triangle taken from the land described as Tract No. 1. To the best of my knowledge and belief the statements contained in this report are true and correct, and that neither the employment to make this appraisal report nor the compensation is contingent upon the value reported, and that in my opinion the Market Value as of February 6, 2009 is: FIVE MILLION FORTY-TWO THOUSAND DOLLARS $5,042,000 The property was appraised as a whole, subject to the contingent and limiting 9 INTENDED USE OF THE APPRAISAL The intended use of this appraisal is to estimate the Market Value of the subject property as of February 6, 2009. Market Value is defined as the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a speci- feed date and the passing of title from seller to buyer under conditions whereby: a. Buyer and seller are typically motivated. b. Both parties are well informed or well advised, and each acting in what he considers his own best interest. c. A reasonable time is allowed for exposure in the open market. d. Payment is made in terms of cash in U.S. dollars or in terms of fi- nancial arrangements comparable thereto. e. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Source: Office of the Comptroller of the Currency, 12 CFI §34.42(f). 11 LOCATION ANALYSIS The subject property is located in the south central part of Pennsylvania in Cum- Berland County, which is part of the Harrisburg-Lebanon-Carlisle Metropolitan Statistical Area (MSA), which consists of Cumberland, Dauphin, Lebanon and Perry counties. Cumberland County has pronounced boundaries. The Susquehanna River forms the east- ern boundary shared with Dauphin County and the state capitol, Harrisburg. The Yellow Breeches Creek forms the southeastem boundary with York County. The boundary then extends to the southwest following the Paney and South Mountains. That line also con- stitutes the southern boundary with Adams County. The southwestern boundary with Franklin County is traced by Laughlin Run, Middle Spring Creek, Gum Run, and Maines Run while the ridge line of Blue Mountain forms the northern boundary with Perry County. This region is one of the most strategically located areas in the Eastern United States and the major center for food distribution in the Middle Atlantic market region which contains over 40 million people. Based upon statistics from the Commonwealth of Pennsylvania Department of Labor and Industry Bureau of Research and Statistics, Pennsylvania's seasonally adjusted civilian labor force -the number of people working or looking for work -rose by 38,000 residents in June, 2007 to 6,296,000. Resident employment grew by 39,000 in June, 2007 accounting for all of the labor force growth. Unemployment was down by 2,000 people. The civilian labor force was down just 9,000 from June 2006, with unem- ployment down 40,000 during the same time period. 12 Pennsylvania's seasonally adjusted unemployment rate fell to 4.1 percent in June, down one-tenth of a percentage point from May. The state rate was down seven-tenths of a percentage point from the June 2006 rate of 4.8 percent. Pennsylvania's seasonally ad- justed unemployment rate remained below the United States' rate (4.5 percent in June) for the fifth consecutive month. Pennsylvania's seasonally adjusted total nonfarm jobs count rose by 900 in June to a new record high level of 5,799,400 jobs. Total jobs in the state have now increased in 11 of the past 12 months. Service-producing industries continued to account for all of the job growth, adding a combined 2,500 jobs. Professional & business services and govern- ment were the only supersectors to show significant increases - 1,500 and 1,600 jobs, respectively - in June. Since June 2006, Pennsylvania added 49,900 jobs, an increase of 0.9 percent. Major east-west transportation links serving the general area are U.S. Route 22 and 322, Interstate Route 78, and Interstate Route 76. Major nearby north-south arteries include Interstate Route 81, Interstate Route 83, and U.S. Routes 11 and 15. Rail service is provided by Amtrak on ConRail's line. The rail terminal is located in downtown Har- risburg. Air transportation includes four airports with Harrisburg International Airport serving the major carriers of U.S. Air, American, and Pennsylvania Commuter Air Lines. General aviation is also served by Capital City Airport and the Carlisle Business Airport. Higher education is offered through the Harrisburg Area Community College, the University Center at Harrisburg, Pennsylvania State University at Harrisburg, Dickinson College and Dickinson Law School. Millersville State University, Shippensburg State 13 University, Susquehanna University, Franklin and Marshall College, and York College, among others, are all within a one hour drive of the general area. Mechanicsburg is located in the southeast section of central Pennsylvania, ap- proximately ten miles from Harrisburg, the state capitol. The town itself is presently un- dergoing aconsiderable degree of renovation and restoration of older properties. Employment opportunities are good, with Commonwealth of Pennsylvania em- ploying approximately 35,000 area workers, Harrisburg being the State Capital. The United States Government employs approximately 14,000, most of which serve two large supply depots, the Army Supply Depot at New Cumberland and the Ship's Parts Control Depot in Mechanicsburg. Some of the largest employers in the Harrisburg area include the Commonwealth of Pennsylvania; the United States Government; United States Postal Service; Hershey Foods Corporation; Naval Support Activity, Mechanicsburg; Pennsyl- vania Blue Shield; Hershey Medical Center; Defense Distribution Center, New Cumber- land; Pinnacle Health System; Electronic Data Systems; PPG Industries; Giant Food Stores; Ross Distribution; United States Army War College and Carlisle Barracks; Capi- tal Blue Cross; and Fry Communications, Inc. The economic base of the area is diversified and extends from strong government, service related and transportation facilities, and commercial and industrial uses. Unem- ployment rates are consistently some of the lowest reported in the area. This is due for the most part to high State and Federal Government employment, as well as expanding private sector uses of distribution and office facilities. 14 ZONING Approximately 85 acres of the subject property is located in an area which is zoned Il, Light Industrial District, and approximately 20.46 acres of the subject property is located in an area which is zoned Rl, Residential District. Light Industrial District: This zone provides for small-scale, light industrial uses. In ad- dition, wholesale businesses involving substantial outdoor storage of unfinished materials are also permitted. Generally, the uses cited attempt to create and sustain a distinct light industrial character that differs from the heavier industries and high traffic-generating commercial uses. Appropriate design standards have been imposed to prevent the blighted and over-developed small-scale industrial concentrations, characteristic of the older, small-scale industries. The following uses are permitted in the Light Industrial District: 1. Agricultural, subject to the standards listed in Section 201 of this Ordinance; 2. Laboratories for medical, scientific, or industrial research and development; 3. Manufacturing, packaging, and associated storage and/or wholesaling of the following: A. Furniture, cabinets, fixtures, office supplies, floor and ceiling materials, and other household appointments; B. Scientific, specialized and technical instruments and equipment; C. Hardware and software for audio-video components, computers, vending machines and video games; D. Finished textile products; 15 E. Brushes, brooms and combs; F. Hot tubs, spas, saunas and swimming pools; G. Jewelry, and other precious metals; H. Photographic, lighting and timekeeping equipment; I. Small household appliances, excluding major appliances; J. Musical instruments and sporting equipment; K. Cosmetics, toiletries and pharmaceuticals; L. Optical, dental, and medical supplies and equipment; and, M. Small or novelty products from prepared materials (excluding the use of sheet metals). 4. Processing, packaging, storage and/or wholesaling of food products excluding: A. Breweries and distilleries; B. Pickling processes; C. Rendering or slaughtering operations; and, D. Sugar refineries. 5. Storage and/or wholesaling of the following, provided the site is set back no less than five hundred (500) feet from the closest residentially-zoned property: A. Home and auto-related fuels; B. Nursery and garden materials, and stock; C. Contractor supplies; and, D. Plumbing, heating, air conditioning, electrical, and other structural components of buildings; 6. Photocopying, bookbinding, printing, and publishing operations; 16 7. Machine shops; 8. Repair shops for products permitted to be manufactured in this Zone; 9. Small engine repair shops; 10. Welding shops; 11. Sign-makers; 12. Offices; 13. Public uses and public utilities excluding communication antennas, towers, and equipment; 14. Agricultural support businesses, including: A. Facilities for the commercial processing, and warehousing of agricultural products; B. Facilities for the warehousing, sales, and service of agricultural equipment, vehicles, feed, or supplies; and, C. Veterinary offices, animal hospitals, or kennels; 15. Vocational and mechanical trade schools; 16. Forestry Activities (see Section 348); 17. Mini-warehouses (see Section 336); 18. Commercial day-care facilities (see Section 328); and, 19. Accessory uses customarily incidental to the above permitted uses, including accessory retail sales of products produced on-site, so long as the sales azea is no more than ten percent (10%) of the total building area or three thousand (3,000) square feet, whichever is less. 17 Residential District: This zone is meant to accommodate suburban detached residential growth within the township. Flexible net density and cluster design standards will be used as an incentive for the protection of important naturaUcultural features, and/or the provision of common open space. The following uses are permitted by right in any R-1 Residential Zone: 1. Agriculture, subject to the standards listed in the zoning ordinance. 2. Single-family detached dwellings. 3. Public and nonprofit parks and playgrounds. 4. Public utilities structures excluding communication antennas, towers, and equip- ment. 5. Public vocational and mechanical trade schools. 6. Forestry activities. 7. No-impact home based business. 8. Accessory uses customarily incidental to the above permitted uses. 18 OWNERSHIP HISTORY The subject property is owned by Donald L. Yorlets, et. al. The property was transferred on August 23, 2005 for a reported consideration of $1.00 and ownership transferred on Deed Book 270, Page 4199. ESTIMATED MARKETING TIME It is estimated that if the subject property were offered for sale at the indicated Market Value, a reasonable marketing time would be six to twelve months. This estimate is based upon quarterly sales figures published by Central Penn Multi List, Inc. ECONOMIC TRENDS Historically, property values for similar properties have steadily increased, with vacancy rates remaining stable. However, the recent lag in the economy has resulted in a leveling of appreciation rates and longer marketing times. Financing is readily available to qualified purchasers at reasonable rates and terms. 19 SITE DESCRIPTION The subject site is irregular in shape, consists of a total area of approximately 105.46 acres, and has a small amount of macadam road frontage along Mulberry Drive. The site is relatively level throughout and there does not appear to be any drainage prob- lems. According to the Federal Emergency Management Agency map number 420370- 0020-B, the majority of the site is not located in an area which is prone to flooding. There is a small portion of the site, along a small stream that is identified as a flood haz- and area. 1n the absence of core boring, it has been assumed that there are no mineral de- posits of a commercial nature underlying the subject site. For the same reason, it is as- sumed that there are no unusual sub-soil conditions that would adversely affect the sub- ject site. Access to the site is via Mulberry Drive, and visibility of the site from this road- way is considered to be good. The is the possibility that additional access to the site could be obtained by extending Keener Drive to the northern boundary of the site. Utilities available at the site include water, sewer, electricity and telephone ser- vice. There appears to be sufficient capacity in each of these utilities to permit optimum utilization of the site. Located on the site is an abandoned single-family dwelling, bank barn and several farm buildings, which are all considered to be in poor condition. Due to the condition of these structures and the indicated highest and best use of the subject site, these improve- ments are considered to add no contributory value to the property. 20 TAXES AND ASSESSMENT The real estate tax assessment, synonymous with assessed value, is the official valuation level of property for advalorem tax purposes. Since the assessment is a dollar amount assigned to taxable property by the assessor for the purposes of taxation, it may not reflect the independent value conclusions found within this report. The following is the assessment and tax liability for the subject property as determined by the County As- sessor's Office: Assessment: Mill Rates: Township County School Total Tax Liability: Township County School Total $624,670 .001034 .002579 .009964 .013577 $ 645.91 1,611.02 6.224.21 $8,481.14 21 HIGHEST AND BEST USE Highest and Best Use is defined by the Appraisal Terminology and Handbook, published by the Appraisal Institute, as "the most profitable likely use to which a prop- erty can be put". The opinion of such use may be based on the highest and most profit- able continuous use to which the property is adapted and needed, or likely to be in de- mand, in the reasonable near future. However, elements affecting value that depend upon events or a combination of occurrences which, while within the realm of possibility, are not fairly shown to be rea- sonably probable, should be excluded from consideration. Also, if the intended use is dependent on an uncertain act of another person, the intention cannot be considered. The following tests must be passed in determining the highest and best use of the subject property. a. The use must be physically possible. The size, shape, and topography of the site affect possible uses for which it can be developed. b. The use must be legal, i.e., permitted under zoning and other municipal, county, state, or federal regulations. c. The use must be financially feasible, probable, and not speculative. There must be an economic, social, or market demand for the existing or proposed use. All uses that are expected to produce a positive return aze regazded as fi- nancially feasible. d. Finally, the highest and best use must be that which produced the highest pos- sible net return for the longest period of time. 22 The highest and best use of the site as vacant may be different from the highest and best use as currently improved. This is most likely to occur with older properties, where physical condition, market changes, and neighborhood changes have been signifi- cant since the period when originally constructed. HIGHEST AND BEST USE AS VACANT: The highest and best use of the property as vacant assumes the site has no existing improvements. This concept is important to the appraisal report as it is carried through to the valuation of the land in the cost approach, if applicable. It assists in the selection of comparable sales of vacant sites to apply to the subject site. Considering the physical characteristics of the site, neighborhood uses, current zoning, location, and financial pa- rameters, it is my opinion that the highest and best use of the subject property, as vacant, would be for development of the industrial zoned portion of the site into an industrial park and development of the residential zoned portion of the site for residential use. Both of these potential uses would be contingent upon additional street access points being provided to the site. 23 THE APPRAISAL PROCESS Three approaches to value aze generally included in an appraisal report. These techniques include the cost approach, sales comparison approach, and income approach to value. The cost approach to value is based on the assumption that the reproduction cost of a building plus land value, tends to set the upper limit to value. A key assumption is that a newly constructed building would have advantages over the existing building, therefore an evaluation focuses upon disadvantages or deficiencies (depreciation) of the existing building compared to a new facility. The sales comparison approach to value assumes that under normal conditions, a given number of parties acting intelligently and voluntarily, tend to set a pattern from which value can be estimated. Application of this approach relies on a comparison of the subject with a sufficient number of recent transactions of compazable properties in the market, based on a common unit, such as price per square foot of building azea. The income approach concerns itself with present worth of the future potential benefits of a property. The initial estimate involves the net income, which a fully in- formed person is justified in assuming the property will produce during its remaining use- ful life. This estimated net income is then capitalized into a value estimate, based upon the level of risk as compared with that of a similaz type and class. Information for the application of the three approaches to value is obtained from the mazket through research verification and analysis. It should be noted that, although the approaches are interrelated, separate indications of value are usually derived from 24 each approach. The reconciliation of these three approaches to value involves an attempt to explain the appazent differences and to determine which approach, or combination of approaches, should be given the greatest consideration. These approaches to value aze considered, and those being appropriate are fully analyzed and presented in the following sections of this appraisal report. 25 THE COST APPROACH The cost approach to value is based on the principle of substitution, which pro- poses that an informed buyer will pay no more than the cost of providing a substitute property with similar utility. In estimating the value of the subject property by the cost approach, the following steps must be completed: a. Estimate the value of the site to its highest and best use as though vacant, which we have done. b. Estimate the reproduction or replacement cost of the improvements on the ef- fective date of the appraisal. This includes direct and indirect costs. c. Estimate other costs incurred after construction to bring the new, vacant build- ing up to market conditions and occupancy levels. d. Estimate entrepreneurial profit, when appropriate, from an analysis of the market. e. Add estimated replacement or reproduction cost, indirect costs, and entrepre- neurial profit, often expressed as a percentage of total direct and indirect costs to arrive at the total replacement or reproduction cost of the primary structure. f. Estimate the amount of accrued depreciation in the structure, which is divided into three major categories; physical deterioration, functional obsolescence, and external obsolescence. 26 g. Deduct the estimated depreciation from the total reproduction or replacement cost of the structure to derive an estimate of the structure's depreciated repro- duction or replacement cost. h. Estimate reproduction or replacement costs and depreciation for any acces- sory buildings and site improvements, and then deduct estimated depreciation from the reproduction or replacement costs of these improvements. Site im- provements and minor building improvements are often appraised at their net value, i.e., directly on a depreciated cost basis. i. Add the depreciated reproduction of replacement costs of the structure, the accessory buildings, and the site improvements to obtain the estimated total depreciated reproduction or replacement cost of all improvements. j. Add the land value to the total depreciated reproduction or replacement cost of all improvements to arrive at the indicated value of the fee simple interest in the property. k. Adjust the indicated fee simple value to reflect the property interest being ap- praised, if necessary, to produce an indicated value for the interest in the sub- sect property. Comparison is the essence of the cost approach to value, similar to the sales com- parison and income approaches. Construction costs, plus land values, are compared to the values of existing improved properties. The four principles used for the sale compari- son approach (substitution, supply and demand, balance, and externalities), are also ap- plicable to the cost approach. 27 So the cost approach to value can be derived and equitably compared with the other approaches to value, adjustments for accrued depreciation from all causes are de- ducted from the reproduction cost, including: a. Physical Deterioration: Physical wearing out of property. b. Functional Obsolescence: Lack of desirability in terms of layout, style and design as compared to that of a new property, serving the same func- tion. c. External Obsolescence: Loss of value from causes outside the property it- self. The cost approach to value is most applicable for new properties, where the com- ponents of physical deterioration and functional and external obsolescence are small. The Marshal Valuation Service is used in this approach with actual costs for the subject property. The Mazshall Valuation Service is a complete, dependable appraisal guide for de- veloping replacement costs, depreciated values, and insurable values of buildings and other improvements. Modifiers are applied to make the cost applicable to any size build- ing in any locality. Known costs for locally constructed properties are also analyzed and compared with derived cost estimates. The land value is based on comparable land sales using the same techniques as applied in the sales comparison approach. Since the subject on-site improvements are considered to have no value, the cost approach to value is inappropriate and has, therefore, not been included in the develop- ment of this appraisal report. 28 THE SALES COMPARISON APPROACH The sales comparison approach is a process of comparing market data, that is, the prices paid for similar properties, prices asked by owners, offers made by prospective purchasers willing to buy, and rents and leases. In applying the sales comparison approach, various appraisal principles are ap- plied, ensuring that all relevant issues have been included in the analysis. The principles of primary importance are supply and demand, balance, substitution, and externalities. Additionally, a fundamental premise of the sales comparison approach is the concept, that from analysis of sales of reasonably similar properties, an appraiser has a factual basis upon which to estimate the value of the subject. Proper application of the sales compari- son approach requires that: a. Only market transactions be weighed, and the date of each transaction be con- firmed to the greatest extent possible. b. The degree of comparability of each sale to the subject be considered. c. The value conclusion be consistent with the analysis of the sales data. A definition of market value is: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a. Buyer and seller are typically motivated. 29 b. Both parties are well informed or well advised, and each acting in what he considers his own best interest. c. A reasonable time is allowed for exposure in the open market. d. Payment is made in terms of cash in U.S. dollazs or in terms of financial az- rangements comparable thereto. e. The price represents the normal consideration for the property sold unaffected by special or creative fmancing or sales concessions granted by anyone asso- ciated with the sale. The degree of comparability that exists between a sale and the subject is often a function of the volume of sales activity in a market. For any class of real estate, if sales are infrequent, the mazket area must be expanded in scope of time and or geography to whatever extent is necessary to accumulate sufficient data on which to base a judgment. To judge the degree of comparability between a sale and the subject, several guidelines can be applied. a. The sale should be in the same mazket as the subject. To the extent that a market is a meeting place for buyers and sellers of real estate of a given type, the boundaries of the market are set by the participants in merchandising and absorbing competitive properties. The boundaries of a market azea are conse- quently economic in character, and not purely physical or geographic. b. Physical characteristics of the sale and subject should be as similar as possible in terms of size and amenities customarily found within the applicable class of real estate. c. Real estate price trends over time must be taken into consideration. 30 d. The functional adequacy of the sale property and the subject should be com- petitive in terms of the ability of each to support similar functions. In arriving at this conclusion of the value of the subject property, your appraiser made a survey of properties that have been sold recently or are now offered for sale within the general area. Sales, terms of sale, and price were verified by a personal examination and/or in- terview with the sales brokers. As it was impossible to find an identical property to that of the subject, since no two properties are ever identical, it was necessary to make adjustments on each compara- ble sale and offering for sale as related to the subject property. Consideration was given and adjustments were made on each comparable sale, of- fering for sale as to time of sale, size, location, and utility, as well as all other factors that might affect value. A resume of some of the sales and offerings for sale considered by your appraiser are listed on the following pages: 31 INDUSTRIAL SALE NO 1: Location: Lot No. 1 Allen Road Carlisle, Pennsylvania Tax Parcel Number: 50-08-0581-017 Date of Sale: June 1, 2007. Deed Reference: Deed Book 280, Page 1311. Type: Vacant tract of land. Zoning: Light Industrial District. Size: 27.6 acres. Road Frontage: 1,194.24 feet. Topography: Level Utilities: Water, sewer, electricity and telephone. Grantor: Francis L. and Phoebe S. Bear. Grantee: Headlands Realty Corp. Sale Price: $1,608,552 Unit Price: $58,281 per acre. Data Source: Cumberland County Assessment Office records and visual inspection. 32 INDUSTRIAL SALE NO 2: Location: Woods Drive Industrial Park Mechanicsburg, Pennsylvania Tax Pazcel Number: 38-07-0461-153 Date of Sale: May 31, 2006. Deed Reference: Deed Book 274, Page 4059. Type: Vacant tract of land. Zoning: Light Industrial District. Size: 39.03 acres. Road Frontage: 1,451.40 feet. Topography: Level Utilities: Water, sewer, electricity and telephone. Grantor: Mark X. and John M. DiSanto. Grantee: SAV Ltd. Sale Price: $3,775,000 Unit Price: $96,720 per acre. Data Source: Cumberland County Assessment Office records and visual inspection. 33 INDUSTRIAL SALE NO 3: Location: Lot No. 1 Lisburn Road Carlisle, Pennsylvania Tax Parcel Number: 40-09-0533-014 Date of Sale: October 19, 2007. Deed Reference: 2007-40003 Type: Vacant tract of land. Zoning: Industrial District. Size: 47.64 acres. Road Frontage: 1,221.17 feet. Topography: Level Utilities: Water, sewer, electricity and telephone. Grantor: Ralph C. Otto. Grantee: RAMA Development, LLC. Sale Price: $4,320,000 Unit Price: $90,680 per acre. Data Source: Cumberland County Assessment Office records and visual inspection. 34 INDUSTRIAL SALES ADJUSTMENTS The appraiser has analyzed comparable sales and has developed dollar adjust- ments, reflecting market reaction to those items of significant variation between the sub- ject and comparable properties. If a significant item in the comparable property is supe- rior to, or more favorable than the subject property, a minus (-) adjustment is made, thus reducing the indicated value of the subject; if a significant item in the comparable is infe- rior to, or less favorable than the subject property, a plus (+) adjustment is made, thus in- creasing the indicated value of the subject. SALE #1 SALE #2 SALE #3 Sale Price Price Per Acre 1,608,552 3,775,000 4,320,000 Time 58,281 96,720 Location +5,800 +14,500 +9,100 Public Road Fronta a g -19,300 -11 700 -19 300 -9,100 Net Adjustment Indicated Value: -5 900 -24 100 -18 100 -18 100 52,381 72,620 72,580 85 acres x $52,381 = $4 452 385 , , Rounded to: $4,452,000 35 EXPLANATION OF ADJUSTMENTS COMPARABLE SALE NO. 1: A 10 percent positive adjustment was made for the lapse in time between the sale date of the comparable sale and the effective date of this appraisal. A 20 percent negative adjustment was made for the subject's inferior amount of public road frontage. COMPARABLE SALE NO. 2: A 15 percent positive adjustment was made for the lapse in time between the sale date of the comparable sale and the effective date of this appraisal. A 20 percent negative adjustment was made for the subject's inferior location. A 20 percent negative adjustment was made for the subject's inferior amount of public road frontage. COMPARABLE SALE NO 3: A 10 percent positive adjustment was made for the lapse in time between the sale date of the comparable sale and the effective date of this appraisal. A 10 percent negative adjustment was made for the subject's inferior location. A 20 percent negative adjustment was made for the subject's inferior amount of public road frontage. 36 RESIDENTIAL SALE NO 1: Location: 1 Steam Engine Hill Mechanicsburg, Pennsylvania Talc Parcel Number: 22-12-0350-103 Date of Sale: January 19, 2007. Deed Reference: Deed Book 278, Page 2365. Type: Vacant tract of land. Zoning: Agricultural District. Size: 90.34 acres. Road Frontage: None. Topography: Level Utilities: Water, sewer, electricity and telephone. Grantor: Williams Grove, Inc. Grantee: Williams Grove Historical Steam Engine Associa- tion, Inc. Sale Price: $2,250,000 Unit Price: $24,905 per acre. Data Source: Cumberland County Assessment Off ice records and visual inspection. 37 RESIDENTIAL SALE N0.2: Location: Tamanim Way Mechanicsburg, Pennsylvania Tax Parcel Number: 22-09-0541-011 Date of Sale: March 16, 2007. Deed Reference: Deed Book 279, Page 739. Type: Vacant tract of land. Zoning: Residential District. Size: 65.93 acres. Road Frontage: 1,317.62 feet. Topography: Level Utilities: Water, sewer, electricity and telephone. Grantor: John T. Mongelli, et. al. Grantee: Trindle Station, LLC. Sale Price: $2,100,000 Unit Price: $31,852 per acre. Data Source: Cumberland County Assessment Office records and visual inspection. 38 RESIDENTIAL SALE N0.3: Location: Lot No. 1 Petersburg Road Carlisle, Pennsylvania Tax Parcel Number: 40-09-0531-010 Date of Sale: May 15, 2007. Deed Reference: Deed Book 279, Page 4968. Type: Vacant tract of land. Zoning: Residential Low Density District. Size: 69.57 acres. Road Frontage: 945.46 feet. Topography: Level Utilities: Water, sewer, electricity and telephone. Grantor: Diehl Builders. Grantee: Lexington Land Developers Corp. Sale Price: $2,000,000 Unit Price: $28,748 per acre. Data Source: Cumberland County Assessment Office records and visual inspection. 39 RESIDENTIAL SALES ADJUSTMENTS The appraiser has analyzed comparable sales and has developed dollar adjust- ments, reflecting mazket reaction to those items of significant variation between the sub- ject and comparable properties. If a significant item in the compazable property is supe- rior to, or more favorable than the subject property, a minus (-) adjustment is made, thus reducing the indicated value of the subject; if a significant item in the comparable is infe- rior to, or less favorable than the subject property, a plus (+) adjustment is made, thus in- creasing the indicated value of the subject. SALE #1 SALE #2 SALE #3 Sale Price Price Per Acre Time Location Public Road Frontage Net Adjustment Indicated Value: 2,250,000 2,100,000 2,000,000 24,905 31,852 28,748 +2,500 +3,200 +2,900 +5,000 +2,900 -6 400 -5 700 +7 500 -3 200 +100 32,405 28,652 28,848 20.46 acres x 28,848 = $590,230 Rounded to: $590,000 40 EXPLANATION OF ADJUSTMENTS COMPARABLE SALE NO. 1: A 10 percent positive adjustment was made for the lapse in time between the sale date of the comparable sale and the effective date of this appraisal. A 20 percent positive adjustment was made for the subject's superior location. COMPARABLE SALE NO. 2: A 10 percent positive adjustment was made for the lapse in time between the sale date of the comparable sale and the effective date of this appraisal. A 20 percent negative adjustment was made for the subject's inferior amount of public road frontage. COMPARABLE SALE NO. 3: A 10 percent positive adjustment was made for the lapse in time between the sale date of the comparable sale and the effective date of this appraisal. A 10 percent positive adjustment was made for the subject's superior location. A 20 percent negative adjustment was made for the subject's inferior amount of public road frontage. 41 Your appraiser, in addition to the sales listed, also considered several additional sales in arriving at his final opinion of value. After making all of the necessary adjust- ments, as explained in the opening paragraphs under this approach to value, it is your ap- praiser's considered opinion that the Market Value of the subject property by the Sales Comparison Approach is best estimated as follows: Industrial portion of the site: Residential portion of the site: Total Indicated Value: $4,452,000 590.000 $5,042,000 42 THE INCOME APPROACH The income approach is a method of converting income streams into present worth. Using this approach, the net operating income should be sufficient to cover total mortgage payments and offer a return on equity investment. In order to arrive at this in- come stream, it is necessary to compare the subject property with compazable properties to substantiate the economic rent, vacancy rate, operating expenses, and capitalization rate. The net operating income is then capitalized to obtain an estimate of value by in- come approach. The subject consists of a tract of land with improvements of no economic value. Since it is unlikely that this tract of land would be used for income producing purposes, the income approach to value is considered to be inappropriate and has, therefore, not been included in the development of this appraisal report. 43 RECONCILIATION AND FINAL VALUE ESTIMATE Reconciliation is the analysis of alternative conclusions to arrive at a final value estimate. Reconciliation is required because different value indications result from the use of multiple approaches to value and within the application of a single approach. The final value estimate is not derived simply by applying technical and quantita- tive procedures; rather, it involves the exercise of judgment. The value conclusion reached must be consistent with market thinking. The parts of this appraisal report are the following approaches to value your ap- praiser used: Value Indicated by Cost Approach N.A. Value Indicated by Sales Comparison Approach $5,042,000 Value Indicated by Income Approach N.A. These approaches are representative of the market value of the property. I have carefully examined each step in each method, and I believe the conclusions accurately reflect the attitude of typical purchasers of this type property in this neighborhood. It is my belief that this reexamination has confirmed the original conclusions. As a result of this appraisal and analysis, it is this appraiser's considered judgment and opinion that the Market Value of the subject property, as of February 6, 2009 is: FNE MILLION FORTY-TWO THOUSAND DOLLARS $5,042,000 44 UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS SUBJECT TO THIS APPRAISAL 1. I assume no responsibility for matters legal in nature, nor do I render any opinion as to the title, which is assumed to be marketable. The property is appraised as though under responsible ownership. 2. The legal description used herein is correct. 3. I have made no survey of the subject property, and the boundaries are taken from records believed to be reliable. 4. I assume that there are no hidden or unapparent conditions of the property, subsoil or structures which would render it more or less valuable. I assume no responsi- bility for such conditions or for engineering which might be required to discover such factors. 5. The information, estimates, and opinions furnished to me and contained in this re- port were obtained from sources considered to be reliable and believed to be true and correct. However, no responsibility for accuracy can be assumed by me. 6. This appraisal report is to be used in its entirety and only for the purpose for which it was rendered. 7. Neither all nor any part of the contents of this appraisal report, (especially any conclusions as to value, the identity of the appraiser or the firm with which he is connected) shall be reproduced, published, or disseminated to the public through advertising media, public relations media, sales media, or any other public means 45 of communication, without the prior written consent and approval of the ap- praiser. 8. Unless otherwise stated in this report, the existence of hazardous material, includ- ing without limitation asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea- formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engi- neering knowledge required to discover them. The client is urged to retain an ex- pert in this field, if desired. 9. I do not have knowledge or experience required to evaluate whether physical changes have to be made to existing facilities to conform to the Americans With Disabilities Act regulations or whether alterations or new construction meets the requirements. Therefore, the value reported is based upon the assumption that the subject property conforms to the ADA regulations. The client is urged to retain an expert in this field, if desired. 10. Acceptance of and/or use of this appraisal report constitutes acceptance of the foregoing assumptions and limiting conditions. 46 11. Adherence to the confidentiality requirement of the Uniform Standards of Profes- sional Appraisal Practice requires that, prior to making any copies of the appraisal report or having discussions related to this appraisal assignment with anyone other than the client, approval from the client be obtained in writing. Upon re- ceipt of said written authorization, copies of the appraisal report shall be produced or discussions with a third party may be held. Fees for these additional services shall be mutually agreed upon and are payable in advance. 12. This appraisal was prepared under the extraordinary assumption that any ease- ments or rights of way of record have no adverse impact upon the highest and best use or value herein reported. A title search was not requested nor included in the scope of work for this assignment. 13. This appraisal was prepared for the exclusive us of the client identified in this ap- praisal report. The information and opinions contained in this appraisal set forth the appraiser's best judgment in light of the information available at the time of the preparation of this report. Any use of this appraisal by any other person or en- tity, or any reliance or decisions based on this appraisal are the sole responsibility and at the sole risk of the third party. The appraiser accepts no responsibility for damages suffered by any third party as a result of reliance on or decisions made or actions taken based on this report. 47 CERTIFICATE OF APPRAISAL Your appraiser hereby certifies that: 1. I have no present or contemplated future interest in the subject property. 2. I have no personal interest or bias with respect to the subject matter of this ap- praisal report or the parties involved. My findings are not based on the employ- ment to make the restricted appraisal, a requested minimum valuation, a specific valuation, or the approval of a loan. 3. To the best of my knowledge and belief, the statements of fact contained in this appraisal report, upon which the analyses, opinions, and conclusions expressed herein are based, are true and correct. 4. This appraisal report sets forth all of the limiting conditions (imposed by the terms of my assignment or by the undersigned) affecting the analyses, opinions, and conclusions contained in this report. 5. This appraisal report has been made in conformity with the Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Boazd of the Appraisal Foundation, and is subject to the requirements of the Code of Profes- sional Ethics and Standards of Professional Conduct of the Appraisal Section of the National Association of Realtors. 6. No one other than the undersigned prepared the analyses, conclusions, and opin- ions concerning real estate that are set forth in this appraisal report. Larry E. Foote Pa. Certified General Appraiser GA-000014-L 48 PRIVACY NOTICE Pursuant to the Gramm-Leach-Billey Act of 1999, effective July 1, 2001, apprais- ers, along with all providers of personal financial services are now required by federal law to inform their clients of the policies of the firm with regard to the privacy of client nonpublic personal information. As professionals, we understand that your privacy is very important to you and are pleased to provide you with this information. In the course of performing appraisals, we may collect what is known as "nonpub- lic personal information" about you. This information is used to facilitate the services that we provide to you and may include the information provided to us by you directly or received by us from others with your authorization. We do not disclose any nonpublic personal information obtained in the course of our engagement with our clients to nonaffiliated third parties, except as necessary or as required by law. By way of example, a necessary disclosure would be to our independent contractors, and in certain situations, to unrelated third party consultants who need to know that information to assist us in providing appraisal services to you. All of our inde- pendent contractors and any third party consultants we engage are informed that any in- formation they see as part of an appraisal assignment is to be maintained in strict confi- dence within the firm. A disclosure required by law would be a disclosure by us that is ordered by a court of competent jurisdiction with regard to a legal action to which you are a party. We will retain records relating to professional services that we have provided to you for a reasonable time so that we are better able to assist you with your needs. In or- 49 der to protect your nonpublic personal information from unauthorized access by third par- ties, we maintain physical, electronic and procedural safeguards that comply with our professional standards to insure the security and integrity of your information. 50 LARRY E. FOOTE REAL ESTATE APPRAISER EXPERIENCE: 1979-Present: Chief Appraiser, Diversified Appraisal Services, Carlisle, Pa. Principal Broker, LaRue Development Company, Carlisle, Pa. 1976-1979: Associate Broker, Colonial Realty, Carlisle, Pa. 1972-1976: Realtor Associate, Jack Gaughen Realtor, Carlisle, Pa. Appraisal experience included undeveloped land, farms, building lots, single-family dwellings, mobile home parks, medical centers, nursing homes, motels, apartment buildings and complexes, office buildings, service stations, veterinary clinics, rehabilitation centers, retail buildings, day- care centers, warehouses, and manufacturing facilities. EDUCATION: Bachelor of Business Administration, Pennsylvania State University, 1976. Associate Bachelor of Business Administration, Harrisburg Area Community College, 1974. Diploma, Carlisle Senior High School, 1965. Certificate, Pennsylvania Realtors Institute, GRI I, GRI II, GRI III. Certificate, Realtors National Marketing Insfitute, CI 101, CI 102, CI 103, CI 104, CI 105. Standards of Professional Practice, American Institute of Real Estate Appraisers. Real Estate Appraisal Principles, American Institute of Real Estate Appraisers. Residential Valuation, American Institute of Real Estate Appraisers. Appraisal Procedures, Appraisal Institute. Principles of Income Property Appraising, Appraisal Institute. Case Studies in Real Estate Valuation, Appraisal Institute. Report Writing and Valuation Analysis, Appraisal Institute. PROFESSIONAL LICENSES: General Appraiser #GA-000014-L, Commonwealth of Pennsylvania. Real Estate Broker #RB-029729-A, Commonwealth of Pennsylvania. PROFESSIONAL DESIGNATIONS: GRI: Graduate of the Pennsylvania Realtors Institute, awarded by the Pennsyl- vania Association of Realtors. CRS: Certified Residential Specialist, awarded by the Realtors National Market- ing Institute of the National Association of Realtors. CCIM: Certified Commercial Investment Member, awarded by the Realtors National Marketing Institute of the National Association of Realtors. PROFESSIONAL ORGANIZATION AFFILIATIONS: National Association of Realtors Appraisal Section. Greater Harrisburg Association of Realtors. Pennsylvania Association of Realtors. National Association of Realtors. Realtors National Marketing Institute. 51 PAST CLIENTS: Borough of Cazlisle Keystone Financial Mortgage Cornerstone Federal Credit Union Pennsylvania State Bank Commerce Bank Cumberland-Perry Association for Retarded Citizens Carlisle Suburban Authority Members ls` Federal Credit Union Pennsylvania National Bank Evans Financial Corporation Greenawalt & Company, CPA Smith's Transfer Corporation Carlisle Department of Pazks and Recreation Executive Relocation Services Carlisle Area School District Messiah Homes, Incorporated ERA Eastern Regional Services Pennsylvania Turnpike Commission Chase Home Mortgage Corporation Defense Activities Federal Credit Union Pennsylvania State Employees Credit Union PNC Mortgage Corporation F&M Trust Company National City Mortgage Corporation Washington Mutual Home Loans, Inc. Prudential Relocation Services Lender's Choice Market Intelligence, Incorporated United Telephone Employees Federal Credit Union Cumberland County Commissioners Allstate Enterprises Mortgage Corporation Dickinson College PPG Industries, Incorporated Gettysburg College Redevelopment Authority of Cumberland County Record Data Appraisal Services, Incorporated First United Federal Savings Association Fulton Bank United States Marshall Service GMAC Mortgage Corporation Orrstown Bank Letterkenny Federal Credit Union BancPlus Mortgage Corporation Coldwell Banker Relocation Services, Incorporated Central Pennsylvania Savings Bank Mellon Bank Provident Home Mortgage Corporation Various law firms and individuals 52 53 Allocation of Assets Among Trusts, June 30, 2003 Allocation of Assets and Deemed Assets to Trusts Trust C= ~ $ 601,100 Principal invasions $ 193. 563 Brokerage Account (excluding $5,000 cash, allocated to Trust A, below) $ 206 819 Loan to Dorothy Yorlets $ 200,7;18 $ 601,100 Trust B-QTIP $ 152,966 Loan to Dorothy Yorlets $ 64;467 Farm $ 88,499 $ 152,966 Trust B-Non-QTIP $ 336,699 Farm $ 336,699 $ 336,699 Trust A $ 601,998 Farm $ 584,238 Excess Executor Fees $ 17,760 Cash $ 5,000 Less Reserve $ (5,000) $ 601, 998 INFORMATION SCHEDULES Yorlets Trust C For Period 12/31/2004 Through 10/02/2006 Loan to Dorothy Yorlets $200,716.00 12/31/2004 Payment by Dorothy Yorlets of Keefer Wood Allen & Rahal fees -2,605.50 01/03/2006 Loan to Dorothy Yorlets 4,947.73 02/01/2006 Loan to Dorothy Yorlets 4,806.57 03/01/2006 Loan to Dorothy Yorlets 4,962.06 04/03/2006 Loan to Dorothy Yorlets 4,972.13 05/01/2006 Loan to Dorothy Yorlets 4,983.91 06/01/2006 Loan to Dorothy Yorlets 4 970.05 07/03/2006 Loan to Dorothy Yorlets 4,702.52 08/01/2006 Loan to Dorothy Yorlets 4,933.04 09/01/2006 Loan to Dorothy Yorlets 4,936.12 10/02/2006 Loan to Dorothy Yorlets 34,015.59 10/02/2006 Loan to Dorothy Yorlets 4,355.32 $280,697.54 METTE, EVANS & WOODSIDE ATTORNEYS AT LAW HARRIS9URG, TLN'N+JYLVANIA 17108-0729 '~.a,~t ~lllill and ~e~tament OF DOROTHY S. YORLETS I, DOROTHY S. YORLETS, of Silver Spring. Township, Cumberland County, Pennsylvania, do make, publish and declare this to be my Last Will and Testament, hereby revoking all Wills and Codicils by me at any time made. ITEM I: I direct that all inheritance and estate taxes becoming due by reason of my death, whether such taxes may be payable by my estate or by any recipient of any property, shall be paid by the Executor out of the property passing under ITEM V of this Will, as an expense and cost of administration of my estate. The Executor shall have no duty or obligation to obtain reimbursement for any such tax so paid, even though on proceeds of insurance or other property not passing under this Will. ITEM II: I direct the Executor to pay the expenses of my last illness and funeral expenses from the property passing under this Will as an expense and cost of administration of my estate. ITEM III: I give the following cash bequests: (i) The sum of TEN THOUSAND ($10,000) DOLLARS to each of my grandchildren living at the time of my death; Page 1 ! ~, r• i (ii) The sum of ONE THOUSAND ($1,000) DOLLARS to TRINITY LUTHERAN CHURCH, Mechanicsburg, Pennsylvania; (iii) The sum of ONE THOUSAND ($1,000) DOLLARS to my sister, ROZELLA McLANE; (iv) The sum of ONE THOUSAND ($1,000) DOLLARS to my brother, GLENN L. SOUDER; and (v) The sum of ONE THOUSAND ($1,000) DOLLARS to my sister-in-law, PATRICIA H. SOUDER. ITEM IV: I give and bequeath to my children living at the time of my death, absolutely and in fee simple, all of my household furniture and furnishings, books, pictures, jewelry, silverware, automobiles, wearing apparel and all other articles of household or personal use or adornment and all policies of insurance thereon, to be divided between them as they shall agree. ITEM V: I give, devise and bequeath all the rest, residue and remainder of my estate, not disposed of in the preceding portions of this Will, to DONALD L. YORLETS and NANCY LIVINGSTON, or their successors in Trust, as Trustees (hereinafter collectively referred to as "Trustee"), IN TRUST NEVERTHELESS, to be held, administered and distributed in accordance with the terms of a certain Declaration of Trust execl~. ted by me as Grantor and Trustee on the /~ day of ~,~i~•~(~~1~.,, 195. I here ~ by confirm and ratify said Declaration of Trust in every respect. Page 2 ~, ITEM VI: In addition to powers given by law, the Executor shall have the following discretionary powers, effective without court order: (a) To retain any property received by the Executor; (b) To sell real estate for any purposes, publicly or privately, for such prices and on such terms as the Executor deems proper, without liability on the purchasers to see to application of the purchase moneys; (c) To compromise controversies; (d) To distribute income or principal in cash or in kind, or partly in each, at valuations fixed by the Executor at such times as are deemed appropriate; (e) To hold investments in the name of a nominee; and (f) To undertake all other acts in the Executor's judgment deemed necessary for the proper and advantageous administration and settlement of my estate. ITEM VII: Any person who shall have died at the same time as I shall have, or in a common disaster with me, or under such circumstances that the order of our deaths cannot be established by proof, or within thirty (30) days of my death, shall be deemed to have predeceased me. .y Page 3 ~, ITEM VIII: If at any time any beneficiary under the age of twenty-one (21) years shall be entitled to receive any assets hereunder, the living parent of such beneficiary who is my issue shall receive such assets as Custodian under the Pennsylvania Uniform Transfers to Minors Act for that beneficiary. Such Custodian may receive and administer all assets authorized by law, and shall have full authority as provided in the Pennsylvania Uniform Transfers to Minors Act to use such funds in the manner it deems advisable for the best interests of such beneficiary. In addition, said Custodian shall have all the rights and privileges as to the Custodianship and its assets as are herein granted to .the Executor as to my estate and the assets therein. I also designate said Custodian as successor Custodian of any property for which I am custodian under any Uniform Gifts to Minors Act, or Uniform Transfers to Minors Act. ITEM IX: I hereby nominate, constitute and appoint DONALD L. YORLETS and NANCY LIVINGSTON to be the Executors, herein collectively referred to as "Executor". The Executor is specifically relieved from the duty or obligation of filing any bond or other security. IN WITNESS WHEREOF, I have set my hand and seal to this, my Last Will and Testament, consisting of this and the preceding three (3) pages, at the end of each page of which I Page 4 ~' ,!~. ~, ,~ ~'4~4 ~+ ~• ... "~la~re also set my initials for greater security and better ~,~~ identification this /3~ day of ~~~,~~~ 19Y.:~ . ~4%~r1~L~ ~ r~~G.~' ( SEAL ) DOROTHY YO TS We, the undersigned, hereby certify that the foregoing Will was signed, sealed, published and declared by the above-named Testatrix as and for her Last Will and Testament, in the presence of us, who, at her request and in her presence and in the presence of each other, have hereunto set our hands and seals the day and year first above written, and we certify that at the time of the execution thereof, the said Testatrix was of sound and disposing mind and memory. ~,(:e-l',.C~r~ }/~ ~)~l-P (SEAL) Residing at;~`7~// ~ k'_y,c.L-~• i n ~ / 0 // (SEAL) Residing ~at ~'~ ~ (SEAL) Residing at l7•r~ /~ '~'~' ACKNOWLEDGEMENT 1~1'WEALTE3 OF PENNS VANIA ) SS: +C,OUNTY OF ~~~-(~~ /YI ) I, DOROTHY 5. YORLETS, Testatrix, whose name is signed to the attached or foregoing instrument, having been duly qualified according to law, do hereby acknowledge that I signed :and executed the instrument as my Last Will and Testament; that I .signed it willingly; and that I signed it as my free and voluntary act for the purposes therein expressed. //JJ~, ..,,yt~~ /, ~ _ ,n ~d.'~~~~1~' .~, .i~°"~~ (SEAL) DOROTHY YORt,ETS Sworn to and suYascribed before me this ~j /~ ~/ day of No ary Public My Commission Expires (SEAL) _ Nrnati~l Seal MargareP L. L~ovd, Ncrtary Public i-;;~~,.L:;o-n~rg, C?auphin Couniy My Cra'nmssion ::xp;res June 2i, 1996 P,:q~ii~x3,, Nenr~>y'r.'ania~~dation uP fVOWn¢s AFFIDAVIT ~~~. ,~.~~ COMMONWEALTH OF PENN LVANIA ) e ) SS: COUNTY OF /~~~~~~~ ~~/~ ) and L~~ ~ ~ ~fl the Witnesses whose names are signed to the attached or foregoing instrument, being duly qualified according to law, do depose and say that we were present and saw Testatrix, DOROTHY S. YORLETS, sign and execute. the instrument as her Last Will and Testament; that Testatrix signed willingly and that she executed said Will as her free and voluntary act for the purposes therein expressed; that each of us in the hearing and sight of the Testatrix signed the Will as Witnesses; and that to the best of our knowledge the Testatrix was at that time eighteen (18) or more years of age, of sound mind and under no constraint or undue influence. ~` ~ Witness Witness -'~ ~- / Witness ,, Sworn to and~~ubscribed be or me this /,~ Zli' day of ~ /lu~~-~ 19 /~) otary Public My Commission Expires : IJoraria{Seal Margaret L BoyC, tk+tary Public ( S F AT ,) Harrisbum, Ciauphin County My Con;~Tiss~n mires June 27,1996 r*tUer, Pann~ytveuUeiNes~xiaton al Nownss 19191_1 ~~ ~ S~.,e. REVOCABLE DECLARATION OF TRIIST THIS PEVOCABLE DECLARATION OF TP.UST made and entered ~ into as of this %J `day of ~,~~.~ 1995, by and between ~ DOROTHY S. YOP.LETS, as Grantor, (herei after referred to as ! "Grantor" and "Trustee"). WITNESSETH: WHEREP_S, Grantor is the owner o fully described in Schedule "A", hed hereof; and respect to suc NOW, assets more d made a part a Trust with s this Trust. ARTICLE or, concurrently with or subsequent to the n of is Agreement of Trust, will. transfer and convey stee the assets listed on Schedule "A", attached hereto and made a part hereof, which said assets are hereinafter referred to as the "Trust", receipt of which assets hereby is acknowledged by Trustee, and Trustee, in consideration thereof, agrees to hold and administer said assets and any additions thereto, as Trustee, IN TRUST NEVERTHELESS, for the following uses and purposes: (a) Trustee shall have, hold, manage, invest and reinvest the same, collect the income and pay over the net income in quarterly installments to Grantor during Grantor's lifetime. i (b) During the lifetime of Grantor, Trustee shall pay to Grantor such portion or all of the principal of the Trust as such income beneficiary may .from time to time request in writing. (c) Trustee may also expend so much of principal of the Trust as, in its discretion, necessary and/or advisable to supplement all the may be income of Grantor in order to provide support a d .ntenance, including medical, hospital, nursing ~ ~~}xsing home care for such beneficiary. a ~' ,~~ (d) over to principa bequests estate tax e and tion costs which may be incu d w th r o Grtor's estate. Thereafter, st shal Grantor predeceases "Trust A": There shall be placed in "Trust A" that fraction of the total principal of which the numerator shall be a sum equal to the largest amount that can pass free of Federal estate tax by hall pay ~h of the - 2 - may be ze under "Tr by the act exercising "Trust B perry sn pass or may be - fected tor's estate in e shall be placed in "Trust B" that 'on of Grantor's residuary estate of which the numerator shall be a sum equal to the amount of the generation-skipping transfer exemption as provided in Section 2631 of the Internal P.evenue Code of 1986, or any comparable legislation in effect at the time of Grantor's death and then available to Grantor after consideration of generation-skipping transfers made by Grantor during her lifetime or made under other Articles of this Agreement, and the allocation of the generation-skipping transfer tax exemption made by Grantor to such generation-skipping transfers and of - 3 - which the denominator shall be the value of Gramtor's residuary estate. "Trust C": The balance of the principal not placed in "Trust A" and "Trust B" shall be placed in "Trust C". AP.TICLE II: Grantor, or any other person, from time to time, with the consent of Trustee, ma bequeath, grant or otherwise transfer ands property, real, personal or mixe Truste and distributed in accordance wit rovis Agreement. apply to "Trus as many equ of Grantor prov ve, devise, any other be administered of this shall 1 i e th he principal into re are n living children ece >hildren of Grantor represented b iving issue. Trustee shall hold one such share .separate Trust for each living child of Grantor, and shall hold one such share as a separate Trust for the benefit of the issue of each such then deceased child of Grantor, per stirpes. (b) DONALD L. YORLETS shall serve as sole Trustee of the Trust established for his benefit and the benefit of his issue, and NANCY LIVINGSTON shall serve as sole Trustee of the Trust established for her benefit and the benefit of her issue. Each shall have the right to appoint a successor Trustee by Will or by - 4 - a written instrument delivered. to the successor Trustee. (c) To the extent that each child of Grantor has not received, after the death of the survivor of Grantor and Grantor's husband, a distribution aggregating at least Two Hundred Fifty Thousand ($250,000.00) Dollars from "Trust C", the Trustee shall distribute to such child from the princi~~; of this ~. F Trust that amount of the principal of~~~„ i"~ ~~rust which, when aggregated with distri s to s-=^ ..; ild from. ~.~.., "Trust C", shall equal Two Fifty`s sand ($250,000.00) Doll (d) Trustee s from his or's ch , f the net (f) Upon the death of the child of the Grantor, Trustee shall convey and pay over all of the remaining assets to one or all or less than all of such child's spouse or issue (and for the purpose hereof, an adopted child shall be considered to be the child of the adopting parent), or such charities as the child of the Grantor shall have designated, in such amounts or - 5 - proportions, and in such lawful interest or estates, whether absolutely or in trust, as the child of the Grantor may have directed, specifically referring to this Power of Appointment,. either by instrument filed with Trustee during the child's lifetime, exercising ' this Power of Appointment, or by the child's Last Will and Testament. any the 's tament, s or ed living (h) In ~ exercised in estate or the ma Power of Appointment be the child of the Grantor, child's rs of either. AP,TICLE IV: The following provisions shall apply to "Trust B": (a) Trustee shall have, hold, manage, invest and reinvest the assets of this Trust, collect the income and beginning at Grantor's death pay over .the net income in quarterly installments to Grantor's husband, JOHN C. YOP.LETS, JP.., during his lifetime. - 6 - i (b) Upon the death of Grantor's husband, Trustee shall pay all accrued income and all income accumulated but undistributed to the estate of Grantor's deceased husband and shall thereafter transfer the then remaining principal of this Trust to "Trust P_" to be held, administered and distributed in accordance with the provisions of P1?TICLE III of this Agreement of Trust. sole, excl 've and u st ted cretion to determine w her to e der tion 2056(b)(7) of the Internal v e Co 986 as amended, or any corresponding ion o he Federal estate law), to qualify all, no a fraction of "Trust E" for the Federal estate tax marital deduction. The decision of Trustee with respect to the exercise of the election shall be final and conclusive upon all persons whose interests in Grantor's estate or this Agreement of Trust are directly or indirectly affected by the election. Only property which is fully eligible for the marital deduction under Federal estate tax law shall be assigned to this Trust. Notwithstanding anything to the contrary contained in this Agreement of Trust, Trustee of this Trust shall not retain beyond a 7 - 8 - ARTICLE V: The following provisions shall apply to "Trust C": (a) Trustee shall pay the net income arising from the principal of this Trust in quarterly installments to Grantor's husband, JOHN C. YOP,LETS, JP.., during his lifetime. (b) During the life of Grantor's shall pay to or for the benefit of Gr much of the principal of thi. st as necessary, in the sole disc of T proper support, ma Grantor's husband. d, Trustee husband sc for the f (d) In each Trust established for the benefit of the issue of a deceased child of Grantor, Trustee shall quarterly pay the net income to or for the benefit of the issue of such deceased child of Grantor, per - 9 - stirpes, living at each time of quarterly distribution; as soon as any one of said issue attains the age of twenty-one (21) years, and in no event later than ~ twenty (20) years following the death of the survivor of Grantor and Grantor's husband, Trustee shall pay over all of the then assets in the Trust to the then living issue of Grantor's deceased child, per stirpes. ibution cf for issue living .terminate equal - 10 - beneficiary shall be paid to the then living issue of such beneficiary, per stirpes. (f) Trustee shall be authorized in Trustee's sole, exclusive and unrestricted discretion to determine whether to elect .(under Section 2056(b)(7) cf the Internal P.evenue Code of 1°$6 as amended, or anv corresponding provision of the Federal estate law), to qualify ail, none or a fraction of "Trust',:r" for the Federal estate tax marital deduction '~- h~ ecision of ~. - r Trustee with respect to the, ise o~~ lection shall be final and conclusi ~ all pe s whose interests in Grant stat r ~s Agre t of Trust are d~,rectly irect a. cted by, e election. pro t ich ~y eligi"~ for the marit :ctio nd Fede state tax w shall be a 'gned to s st. twithstanding anything to e contra fined this Agreement of Trust, Trust o is hall not retain beyond a reasonable ti ~ roper which may at any time be or become unpro e, nor shall they invest in unproductive property. Notwithstanding the provisions of subparagraph (b) of this Article, Trustee shall pay to the Executor of Grantor' s husband's estate, out of the principal of this Trust upon the death of Grantor's husband, an amount equal to the estate, inheritance, transfer, succession and other death taxes ("death taxes"), Federal, state and other, payable by reason of the inclusion of the value of Trust property in Grantor's husband's estate. Such payment shall be equal to the amount by which (1) the total of such - 11 - death taxes paid by Grantor's husband's estate exceeds (2) the total of such death taxes which would have been payable if the value of the Trust property had not been included in his estate. The determination by the Executor of Grantor's husband's estate of the amount payable hereunder shall be final. Grantor directs Trustee to pay such amount promptly upon written request of the Executor of Grantor's husband's estate- The final determination of the amount du ~~.',ereunder tea`=~, shall be based upon the value as final,' ermined for Federal estate tax purposes antor~ `' and's estate. After payment of t nt fine` ',determined to be due hereunde stee al e dis c ed from any further liabil res ct such p" ent. Grantor's payment u Grantor's right to AF.TICLE VI: spec 's righ o 1l, execu after 'cally refers to the t is estate. of the income or principal of the property held u~ hese Trusts shall be subject to attachment, levy or seizure by any creditor, spouse, assignee or trustee or receiver in bankruptcy of any beneficiary prior to his or her actual receipt thereof. Trustee shall pay over the net income and the principal to the parties herein designated, as their interests may appear, without regard to any attempted anticipation, pledging or assignment by any beneficiary under a Trust, and without regard to any claim thereto or attempted levy, attachment, seizure or other process against said beneficiary. - 12 - ARTICLE VII: The Trustee shall possess, among others, the following powers exercisable only in fiduciary capacity: (a) To vary or to retain investments, including the stock of any corporate Trustee named herein, when deemed desirable by Trustee, and to purchase, sell and so-called "legal investments" a, ~t~out be._ 'limited fiduciaries - 13 - out any of t paragraph or (d) To real estate, hereunder. tee in and `o make leases of term of the Trusts (e) To borrow money from any party, including Trustee, to pay indebtedness of a Trust and taxes, and to assign and pledge assets of a Trust therefor. Provided, however, that this paragraph shall not authorize borrowing from "Trust B" or "Trust C". (f) To pay all costs, taxes, expenses and charges in connection with the administration of a Trust, including a reasonable compensation to agents. If any estate or inheritance taxes are payable from assets - 14 - received by Trustee, such taxes shall be paid from the assets constituting "Trust A". (g) In the discretion of Trustee, to unite with other owners of similar property in carrying out any plans for the reorganization of any corporation or company whose securities form a part of a Trus`. (h) To vote any shares of stock of a Trust. (i) To assign to portion of any asset. a part (k) To do al er acts in its judgment deemed necessary or desirable for the proper and advantageous management, investment and distribution of the Trusts. AP,TICLE VIII: Whenever and as often as anv beneficiary hereunder, to whom payments of income or principal are herein directed to be made, shall be under legal disability, or in the sole judgment of Trustee, shall otherwise be unable to apply such payments to his own or her own best interests and advantages, Trustee may make all or any portion of such payments in any one or more of the following ways: - 15 - (a) Directly to such beneficiary; (b) To the Legal Guardian or Conservator of such beneficiary; (c) to the Trustee, or to another person selected by the Trustee, a custodian. under the Pennsylvania Uniform Transfers to Minor Act as to beneficiary; under the age of twenty-one~(2" years; (d) To a relative expended by such rela beneficiary; (e) By of said bane This provision shal B" or "Trust C" to ply distributions from "Trust s husband, JOHN C. YORLETS, JP.. ARTICLE Ix: It is agreed that Grantor may, by instrument in writing delivered to Trustee, modify, alter or revoke this Agreement in whole or in part. AP.TICLE X: Upon the death cf DOP.OTHY S. YOP.LETS, or in the event of her inability or refusal to serve as Trustee, DONALD L. YOP.LETS and NAIQCY LIVINGSTON shall serve as successor Trustees. No Trustee acting hereunder shall be required to give any bond or enter security. - 16 - IN WITNESS WHEP.EOF, DOP.OTHY S. YOP.LETS has hereunto offered her hand and seal as Grantor and Trustee all on the day and•year first above written. -'" ~ l-) Wit~esC GP,ANTOP,/TRUSTEE DOP.OTHY ' YO~`LETS COMMONWEALTH OF P SYLVANIA SS. ,~ COUNTY OF /~1~~~ ~~ U On this, the ~~ ~o day of ~ZGf~.(~Z-~. 19~~ , before me, a Notary Public, the undersigned'officer,;personally appeared DOP.OTHY S. YGP.LETS, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that she executed same far the purposes therein contair_ed. s, IN WITNESS WHEP.EOF, I notarial seal. to set, ';`' hand and ~~ 1 Publ~ c ssi Expires: """~~ptp11a1 Seaf Margn~' L. ~~'~, Notary Public i-„1!11Htt~Rt1, f,)raupl+.in CountY My C-nfi:iY,i~nan ~;x;+irt~s June 27,1996 __..-- s, °"""~, rc•4anafNgwnee wn dxa%F uYf Vl~y SCHEDULE "A" 19125_1 KEEPER WOOD ALLEN &RAHAL, LLP ROBERT L. WELDON ATTORNEYS AT LAW ESTABLISHED IN 1678 EUGENE E. PEPINSKY, JR. (j3 Wj NORTH I2•" STREET, SUITE 400 - JOHN H. ENOS ~ GARY E. FRENCH LEMOYNE, PA 17043 OF COUNSEL: N. DAVID RAHAL BRADFORD DORRANCE SAMUEL C. HARRY JEFFREY S. STOKES PHONE 717-612-3800 CHARLES W. RUBENDAL L II ROBERT R. CHURCH FAX 717-612-5808 STEPHEN L. 6ROSE HARRISBURG OFFICE: R. SCOTT SHEARER EIN NO. 23-0716135 210 WALNUT STREET ELYSE E ROOERS WWW.keeferwood.com HARRISBURG, PA 1710 1 CRAIG A. LON6YEAR JOHN A. FEIGHTEL PHONE 717-256-8000 STEPHANIE KLEINFELTER DONALD M. LEWIS ~ Apri128, 2010 TODD F. TRUNT2 717-612-5801 LAUREN 5. WELDON eroeersLa keeferwood.com ~ Register of Wills of Cumberland County c~~ ~-~, 1 Courthouse Square ~ ~' "" _ ~ ~ ''"% Carlisle, PA 17013 -?~~~ N ~ i f:[t ~.m fj) ICJ ~ r i ; ; y Re: Estate of Dorothy S. Yorleta ~~~ -~ _4~. <_", ~~ File No: 2009-00224 ~ •- ``~ ~ =~ c~ 2009 Date of Death: February 6 ~ --a •~ =-- r^ , c~ Dear Sir/Madam: Enclosed are the following: 1. Pennsylvania Inheritance Tax Return, in duplicate; 2. Check in the amount of $2,000 as payment on account of inheritance tax for this estate. Please note that a request for extension to pay inheritance tax was submitted to the Pennsylvania Department of Revenue on November 5, 2009, but the Department of Revenue has not provided a response to that request for extension. 3. Check in the amount of $15 representing your filing fee for the inheritance tax return. Kindly timestamp the enclosed extra copy of this letter and return it in the envelope provided. car Enclosures cc: Donald L. Yorlets Nancy Livingston Sincerely yours, ~~ ~ Elyse E Rogers