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HomeMy WebLinkAbout12-30-101505610143 REV-1500 Ex `°'-'°' OFFICIAL USE ONLY PA Department of Revenue Pennsylvania county code Year File Number Bureau of Individual Taxes DEPARThENTOFREVENUE Po Box.2soso~ INHERITANCE TAX RETURN 21 10 0484 Harrisburg, PA 17128-0601 RESIDENT DECEDENT ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death 179 20 5175 03 18 2010 Decedent's Last Name KORKUCH (If Applicable) Enter Surviving Spouse's Information Below Spouse's Last Name KORKUCH Spouse's Social Security Number Date of Birth 06 03 1927 Suffix Decedent's First Name MI JEAN M Suffix Spouse's First Name MI FRANCIS J THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS FILL INAPPROPRIATE OVALS BELOW 1. Original Retum ~ 2. Supplemental Retum 4. Limited Estate ~ 4a. Future Interest Compromise (date of death after 2-12-82) s Decedent Died Testate (Attach Copy of Will) a ~. pAtta~erltM aintainnegt a Living Trust ( GG PY Doff TT ) 9. Litigation Proceeds Received ~ 10. b9°tw enP2 311 end~t~da95~fdeath 3. Remainder Return (date of death prior to 12-13-82) 5. Federal Estate Tax Return Required 8. Total Number of Safe Deposit Boxes 11.Election to tax under Sec. 9113(A) (Attach Sch. O) CORRESPONDENT -THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO: Name Daytime Telephone Number AARON C JACKSON ESQ 717 234 4121 First line of address 111 NORTH FRONT STREET Second line of address PO BOX 889 City or Post Office HARRISBURG REGISTER O S USE LILY ;- Ca end ~ 1~ ~ ~ ~ c ` ,. ~ ~ ~ ~'=' ~ -~ c~a ~ Q :: _w, c~ t~ -~ :T? a--a -... r . DA.~ FILED ~zaie sir ~.vae PA 171080889 r~ r Correspondent's a-mail address: ajackson cLDtuckerlaw.com Under penalties of pery'ury, it is true, correct~3dcclaap I have examined this return, includin~ arxompanying schedules and statements, and to the best of my knowledge and belief, ~n of preparer other than the persona representative Is based on all information of which preparer has any knowledge. FI G U DA E .r _ Francis J_ Ke~kuch Jr_ //~'/e~t1~r~~la ADDRESS 2413 Barker Circle, West Chester, PA 19380 SIGNATURE 0 PREPARER OTHER THAN REPRESENTATIVE DATE ~ Aaron C. Jackson Esq. ADDRESS / ~ 111 North Fron Street, Harrisburg, PA 17108-0889 Side 1 1505610143 1505610143 J REV-1500 EX Decedents Nerve: KOrkUCh, Jean M. Decedent's Social Security Number 179 20 5175 RECAPITULATION 1. Real Estate (Schedule A) ....................................................................................... 1. 2. Stocks and Bonds (Schedule B) ............................................................................. 2. 5 2 $ , 0 0 0 . 0 0 3. Closely Held Corporation, Partnership orSole-Proprietorship (Schedule C)......... 3. 4. Mortgages 8~ Notes Receivable (Schedule D) ........................................................ 4. 5. Cash, Bank Deposits 8~ Miscellaneous Personal Property (Schedule E) ............... 5. 6. Jointly Owned Property (Schedule F) ^ Separate Billing Requested............ 6. 7. Inter-Vivos Transfers & Miscellaneous f~cn; Probate Property arate Billin Re uested Se 7 8 65 , 0 0 0 . 0 0 ............ g q p (Schedule G) u . 8. Total Gross Assets (total Lines 1-7) ..................................................................... g, 1 , 3 9 0 , 0 0 0.0 0 13,360.40 9. Funeral Expenses 8 Administrative Costs (Schedule H) ....................................... 9. 10. Debts of Decedent, Mortgage Liabilities, 8~ Liens (Schedule I) .............................. 10. 11. ( ) ................................................................... Total Deductions total Lines 9 8 10 11. 13 , 3 6 0.4 0 12. Net Value of Estate Line 8 minus Line 11 12 1 , 3 7 6 , 63 9.60 13. Charitable and Governmental Bequests/Sec 9113 Trusts for which an election to tax has not been made (Schedule J) ............................................... 13. 14. 1 ( ) ............................................... Net Value Sub ect to Tax Line 12 minus Line 13 14 1 , 3 7 6 , 6 3 9. 6 0 TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 0 0 0 15 (a)(1.2) X .00 . . 16. Amount of Line 14 taxable 1 3 7 6 6 3 9. 6 0 1 s. at lineal rate X .045 , , 17. Amount of Line 14 taxable 0 0 0 17 at sibling rate X .12 . . 18. Amount of Line 14 taxable 0 0 0 18 at collateral rate X .15 . . 19. Tax Due .............................................. .................................................................... 19. 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT. Side 2 1505610243 0.00 61,948.78 0.00 0.00 61,948.78 1505610243 1505610243 REV-1500 EX Page 3 Decedent's Complete Address: File Number 21-10-0484 DECEDENT'S NAME Korkuch, Jean M. STREET ADDRESS 1477 Maplewood Drive CITY New Cumberland STATE PA ZIP 17070 Tax Payments and Credits: 1. Tax Due (Page 2, Line 19) 2. Credits/Payments A. Prior Payments B. Discount 21,000.00 1,105.26 3. Interest 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Check box on Page 2 Line 20 to request a refund Total Credits (A + B) (1) 61,948.78 (2) 22,105.26 (3) 52.61 (4) 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) 39,896. ~ 3 Make Check Pa able to: REGISTER OF WILLS AGENT. R., PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred :............................................................................... ^ ^x b. retain the right to designate who shall use the property transferred or its income :.................................. ^ ^x c. retain a reversionary interest; or ............................................................................................................... ^ d. receive the promise for life of either payments, benefits or care? ............................................................ ^ ^x 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? .................................................................................................................... ^ 0 3. Did decedent own an "intrust for" or payable upon death bank account or security at his or her death?....... ^ ^x 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? .................................................................................................................. 0 ^ IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. For dates of death on or after July 1, 1994 and before Jan. 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3 percent [72 P.S. §9116 (a) (1.1) (i)]. For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 0 percent [72 P.S. §9116 (a) (1.1) (ii)j. The statute does not exempt a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1, 2000: • The tax rate imposed on the net value of transfers from a deceased child 21 years of age or younger at death to or for the use of a natural parent, an adoptive parent, or a stepparent of the child is 0 percent [72 P.S. §9116 (a) (1.2)j. . The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is 4.5 percent, except as noted in 72 P.S. §9116 1.2) [72 P.S. §9116 (a) (1)j. . The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12 percent [72 P.S. §9116 (a) (1.3)]. A sibling is defined under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption. Rev-1503 EX+ (g.98) SCHEDULE C CLOSELY-HELD CORPORATION, PARTNERSHIP OR COMMONWEALTH OF PENNSYLVANIA SOLE-P ROP RI ETO RS H I P INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF (FILE NUMBER Korkuch, Jean M. 21-10-0484 Schedule C-1 or C-2 (Including all supporting information) must be attached for each Gosely-held corporatioNpartnership interest of the decedent, other than a sole-proprietorship. See instructions for the supporting information to be submitted for sole-proprietorships. Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule C (Rev. 6-98) (If more space is needed, additional pages of the same size) Rev-1510 EX+ (8-88) SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PR BATE PROPERTY COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF (FILE NUMBER Korkuch, Jean M. 21-10-0484 This schedule must be completed and filed if the answer to any of questions 1 through 4 on the reverse side of the REV-1500 COVER SHEET is yes. ITEM NUMBER DESCRIPTION OF PROPERTY THE DA E O TR~ANSFRER.SATTACIi A COPY OF THE DEED FOR REAL ESTATE. DATE OF DEATH VALUE OF ASSET % OF DECD'S INTEREST EXCLUSION (IF APPLICABLE) TAXABLE VALUE 1 Real Estate -Lot and house located at 5324 Central 865.000.00 865,000.00 Avenue, Ocean City, NJ, valued per appraisal dated December, 16, 2010, a copy of which is attached hereto. TOTAL (Also enter on Line 7, Recapitulation) 865.000.00 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule G (Rev. 6-98) REV-1151 EX+(10-os) gCHEDULE H cofMfyl c;F~~,r~rANfA FUNERAL EXPENSES & I~o N ADMINISTRATIVE COSTS ESTATE OF FILE NUMBER Korkuch, Jean M. 21-10-0484 Debts of decedent must be reported on Schedule I. ITEM DESCRIPTION AMOUNT A, FUNERAL EXPENSES: B. 1 ADMINISTRATIVE COSTS: Personal. Representative's Commissions Name of Personal Representative(s) Street Address City State Ziq Year(s) Commission paid 2. Attorney's Fees Tucker Arensberg, P.C. 12,342.50 3, Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Street Address City State Ziq Relationshiq of Claimant to Decedent 4. Probate Fees 323.50 5. Accountant's Fees 6. Tax Return Preparer's Fees 7. Other Administrative Costs 694.40 See continuation schedule(s) attached TOTAL (Also enter on line 9, Recapitulation) 13,360.40 Copyright (c) 2009 form software only The Lackner Group, Inc. Form PA-1500 Schedule H (Rev. 10-06) SCHEDULE H FUNERAL EXPENSES AND ADMINISTRATIVE COSTS continued ESTATE OF FILE NUMBER Korkuch, Jean M. 21-10-0484 ITEM NUMBER DESCRIPTION AMOUNT Other Administrative Costs 1 Cumberland Law Journal -Publication of estate notice in legal journal. 75.00 2 Garden State Valuation 5R Consulting Services, LLC -Fee for appraisal of 5324 Central 400.00 Avenue, Ocean City, NJ. 3 Sentinel,The -Publication of estate notice in legal journal. 219.40 Copyright (c) 2002 form software only The Lackner Group, Inc. H-B7 694.40 Form PA-1500 Schedule H (Rev. 6-98) REV-1514 Ex+ (4-09) SCHEDULE K LIFE ESTATE, ANNUITY COM NHERV ITAANTCECTAXRETURNANIA & TERM CERTAIN RESIDENT DECEDENT (Check Box 4 on Rev-1500 Cover Sheet) ESTATE OF FILE NUMBER Korkuch, Jean M. 21-10-0484 This schedule should be used for all single life, joint or successive life estate and term-certain calculations. For dates of death prior to 5-1-89, actuarial factors for single life calculations can be obtained from the Department of Revenue. Actuarial factors can be found in IRS Publication 1457, Actuarial Values, Alpha Volume for dates of death from 5-1-89 to 4-30-99, and in Alpph Volume for dates of death from 5-1-99 and thereafter. Indicate the type of instrument which created the future interest below and attach a copy to the tax return. ^ Will ®Intervivos Deed of Trust ^ Other NAME OF LIFE TENANT DATE OF BIRTH NEAREST AGE AT TERM OF YEARS DATE OF DEATH LIFE ESTATE IS PAYABLE Francis J. Korkuch 09/18/1925 84 ®Life or ^ Term of Years ^ Life or ^ Term of Years ^ Life or ^ Term of Years ^ Life or ^ Term of Years 1. Value of fund from which life estate is payable $ 865,000.00 2. Actuarial factor per appropriate table .17965 Interest table rate - ^ 3112% ^ 6% ^ 10% ®Variable Rate 3. Value of life estate (Line 1 multiplied by Line 2) $ 155,397.25 *: : ~ ~ <, NAME OF ANNUITANT DATE OF BIRTH NEAREST AGE AT DATE OF DEATH I tttM ur Y tAKS ANNUITY IS PAYABLE ^ Life or ^ Term of Years ^ Life or ^ Term of Years ^ Life or ^ Term of Years ^ Life or ^ Term of Years 1. Value of fund from which annuity is payable $ 2. Check appropriate block below and enter corresponding number Frequency of payout-^ Weekly (52) ^ Bi-weekly (26) ^ Monthly (12) ^ Quarterly (4) ^ Semi-annually (2) ^ Annually (1) ^ Other 3. Amount of payout per period $ 4, Aggregate annual payment. Line 2 multiplied by Line 3 5. Annuity Factor (see instructions) Interest table rate - ^ 3112% ^ 6% ^ 10% ^Variable Rate 6. Adjustment Factor (see instructions) $ 7. Value of annuity - If using 3 1/2%, 6%, 10% or if variable rate and period payout is at end of period, calculation is: Line 4 x Line 5 x Line 6 $ If using variable rate and period payout is at beginning of period, calculation is: (Line 4 x Line 5 x Line 6) + Line 3 NOTE: The values of the funds which create the above future interests must be reported as part of the estate assets on Schedules A through G of the tax return. The resulting life or annuity interest(s) should be reported at the appropriate tax rate on Lines 13 and 15 through 18 of the return. Copyright (c) 2009 form software only The Lackner Group, Inc. Form PA-1500 Schedule K (Rev. 4-09) REV•1647 EX+ (9.00) SCHEDULE M COMMONWEALTH OF PENNSYLVANIA FUTURE INTEREST COMPROMISE INHERITANCE TAX RETURN RESIDENT DECEDENT (Check Box 4a on Rev-1500 Cover Sheet) ESTATE OF FILE NUMBER Korkuch, Jean M. 21-10-0484 This schedule is appropriate only for Estates of decedents dying after December 12, 1982. This schedule is to be used for all future interests where the rate of tax which will be applicable when the future interest vests in possession and enjoyment cannot be established with certainty. Indicate below the tune of instrument which created the future interest and attach a coov to the tax return ^ Will ®Trust ^ Other I. ~ Beneficiaries NAME OF BENEFICIARY 1. Francis J. Korkuch 2. Francis J. Korkuch, Jr. 3. Kathryn A. Boudeman 4, Patricia K. Kipp 5. Nancy J. Randall RELATIONSHIP DATE OF BIRT AGE TO NEAREST BIRTHDAY spouse 09/18/1925 84 son 02/03/1956 54 daughter 01/29/1958 52 daughter 04/18/1961 49 daughter 09/05/1954 56 II. For decedents dying on or after July 1, 1994, if a surviving spouse exercised or intends to exercise a right of withdrawal within 9 months of the decedent's death, check the appropriate block and attach a copy of the document in which the surviving spouse exercises such withdrawal richt. I_ I Unlimited rieht of withdrawal n Limited rieht of withrirawal Explanation of Compromise Offer: See attachment. IV. Summary of Compromise Offer: 1. Amount of Future Interest: 865,000.00 2. Value of Line 1 exempt from tax as amount passing to charities, etc. (also include as part of total shown on Line 13 of Cover Sheet) 3. Value of Line 1 passing to spouse at appropriate tax rate 0.00 Check One ^ 6% ^ 3% ®0% (also include as part of total shown on Line 15 of Cover Sheet) 4. Value of Line 1 taxable at lineal rate 865,000.00 ^ 6% ®4.5% (also include as part of total shown on Line 16 of Cover Sheet) 5. Value of Line 1 taxable at sibling rate (12%) (also include as part of total shown on Line 17 of Cover Sheet) 6. Value of Line 1 taxable at collateral rate (15%) (also include as part of total shown on Line 18 of Cover Sheet) 7. Total value of Future Interest (sum of Lines 2 thru 6 must equal Line 1) 865,000.00 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule M (Rev. 6-98) ESTATE OF JEAN M. KORKUCH DATE OF DEATH: MARCH 18, 2010 ATTACHMENT TO SCHEDULE M Under ARTICLE EIGHT of the Jean M. Korkuch Living Trust u/a/d 11/6/2007, the decedent's surviving spouse, Francis J. Korkuch (age 84 on decedent's date of death) is entitled distributions for his health, education, maintenance or support. Upon the death of the surviving spouse, the remaining assets of the trust will be divided into as many equal shares as Jean M. Korkuch has children then living and deceased children with issue then living. The life estate in favor of the decedent's spouse is taxable at 0% and in favor of the decedent's children is taxable at 4-1 /2%; the remainder is taxable at 4-1 /2% for the decedent's issue. Based on the age of the surviving spouse and the other assets and sources of income readily available to him, the surviving spouse believes that it is unlikely that the trustee will make any principal distributions from the trust. Therefore, he proposes that the entire amount of the trust ($865,000.00) be taxed at 4-1/2% because it is likely that the amount of the trust will be distributed to the decedent's children or their issue. HBGDB:116781-1 026014-146231 Estate of Jean M. Korkuch, deceased Estate No. 21-10-0484 Re: PA Inheritance Tax Return List of Exhibits A. Death Certificate B. Grant of Letters issued by Cumberland County Register of Wills on May 10, 2010, including Last Will & Testament of the Decedent dated November 6, 2007 C. The Jean M. Korkuch Living Trust dated November 6, 2007 D. Stock Purchase Agreement dated June 23, 2010 E. Appraisal of 5324 Central Avenue, Ocean City, NJ, dated December 16, 2010. H BGD6:116785-1 026014-146231 HBGDB :113 5 22-1 025176-14095 7 EXHIBIT A os.aos tzEV rovo~> LOCAL REGISTRAR'S CERTIFICATION OF DEATH WARNING: It is illegal to duplicate this copy by photostat or photograph. ee for this certificate, $6.00 This is to certify that the information here given is correctly copied from an original Certificate of Death duly filed with me as Local Registrar. The original certificate will be forwarded to the State Vital Records Office for permanent filing. ~ P 16176088 Certification Number MAR 31 10 Local Registrar Date Issued ~~~~ COMMONWEALTH OF PENNSYLVANIA • DEPARTMENT OF HEALTH • VITAL RECORDS ;"K'~gl,"r CERTIFICATE OF DEATH (See Instructions and examples on raverae) _. ... _ ..... ___ I. wrw d Daadye (Fket, middle, kart, euMbr) 2 sin 3. SocW SeaaNy rMnder 4. Daa a Deets (Mash, d.r. Y•u) Jean M. Korkuch female 179 - 20 - 5175 March 18 2010 s. Age (Lea eka,ay) tkaar ~ Undy ~ s. Dan a &M Doan ~. yd sea a Be. Pao. d oaalh Check era 82 y,g. tAerd. o.y. Haas Mkear June 3 , 19 27 York, PA Hoaplah ® ^ s, r ,, ^ ~ 09ur: ^ ,a,,,, ^ Residence ^ on,~ • sp«ly: !b. Cary d Desri 9e. Cqy, Baro, Twp, a lkah ed. FedNy 14ame (N not MEuWn, 9Ir• ar•a ~ ) 9. Wm Decsderk d l~.pudo OApln? ® No ^ Yee 10. Rea: Amybsn hKihn, &yAt, WIC, eb. Cumberland E. Pennsboro Twp. Select Specialty Hospital .k:) ( ( . white 11. Deadyri's Uyrd a wak d one mat d IMa. oo na sae 12 wee Deaderd altar Nr the i3. DeadsnCa t.duatlort (Specly anly tdglua grata cdnpl earl) 14 Mylal Status: Msnad navy Martled 15 Surviuk S a n ik l ld land d wak lane d e«b«.nnaray u.s. Armed Fanxsl . , , ~OWb~ dvaad (Spady) . q p au ( w , g ue mo er nsme) Teacher Education OYw ®Ha Ekxnsntary r Ser~ndarY (alz, 12 Cdaga (1.4 a 5+) 4 Married Francis J. Korkuch 9. o.aa.nr. Addree (sea. ay r wwn, eaa, ~ ad.) 1477 Maplewood Drive d'e Pennsylvania ~D1d„e ~,° ;°d'rA Aduel awldyaae 17a. stew I To, ®YOe, ~,,,, uwd ~, Lower Allen rw New Cumberland PA 17070 T p. lJvedwkhln ~ Irn.caady Cumberland 0M/1°"p? ne. ^ , a ~ ~yr~ 1B. FMhws rams (tea. midda, kat, sufAx) 19. Molhefs Nrns (Fket, middle, rakan eummu) Harry E. Zumbrun Sadie Kohr TOe. InlormenPs Name (Type / PrIM) 20b. IMarrnerd'e Msllkq Addrw (Stnul, aNy ! lover. atw, rlp ads) Francis J. Korkuch 1477 Ma lewood Drive New Cumberland P 1 al a. Mahod a ~ ^ Cryrrtlon ^ oawdlon 2tb. pea d owpowbn (nwn9,. day, year) 21a Plea d orpaluon twine d arruary, aematay a aey v~•) xtd. I.oa9on (Cl yr awn, aaa, 8p ~- ® eudr ^ RemovahomSYas r wwCnardonaporrdonAuUraimd March 26, 2010 ^ t]Iny • ' by Msdlal P.sanlruNCoronsrt ^ Ym^ rlo Rollin Green Cemeter ower Allen S y Twp . , PA 17 011 ?7a. SeMa (a adlrq m each) 22b. Llcenw Nunby 2Za rarru and AddAw d FaoM1y - FD 013 340 L Parthemore FH & CS, Inc., P.O. Box 431, New Cumberland, PA 17070 CanpMa Menu 23ac ary when aNlykq 23a. To tM bsa d my know4edge, death axumd a tM tlnu, daa and pk+a saad. (Sipnakaa yid tlla) 23b. lk:erue rkanby 23a DaM ~Y r~ ( physkian Y na awNable a tkrw a death b , . aary auw a dselh. Item 24-26 nart ba ampleted by person 24. Tkw d Death 25. Deq Ptananad peed (Mordh, day. year) Z8. wee Caw b Msdba Exemkur ! Caaur rot a Reseal oYur thin Cnmetbn « Donstlon7 who praaarcw dWh. '~ : ~ M. 1 ^ Yee No CAFE OF DEATH (Sae Inratructloru and oxmnple.) r Apprahua harva: Part II: Envy oQur 2& Oki Taheooo Um Coruibua b pwdt9 lam 27. Pert I: Ereer bu draM a ewrrts - diwww, InNaae, a anplcatlone • but dheay caned bu dwlh. l~ NDT say temrkrel swde sudr m ardhc arrmt, r Onea b Dealh but not • reeuMkq b lM undertytrq sum given M Put I. ^ Yw ^ P '~Y rwpkabry arras. a vyrMdAy bbrralbn wMhart alawkq tlu efbkgy. Lht aMy are ceuw on each &u. r gyp,, ~ r ~vJ ~ ^ lMbawn r _ TE U (F~ dkaree a r ~ ~ I ~ 29. II Femde: Duero (a m a caroegruna a): i _ /•c- ""' PmBr~ P~ y~ M wt oardtlorr, N any, b. i ~ ~ }- ^ PregrrrM a tkru d dwlh ~ b awe Aaad an Wu a. RLYMKi CAUSE Dab (a w a carrsquyra M: ~ ^ Not progrwd, but pregnant withkr 42 days Enar UI ~ E N ~r y LASTtM a ~ a dwN raeuMtlk In deah g ) Due a (a m a muegtunce of): r ^ Nol prepwu, but pregnant 43 days ro 1 year r balsa dash d ~ r ^ Unknown 6 pregnyN within bu pea Year 30a. Ww r Autopy 30b. Wye Aufapey Fkrdrge 31. Mamer d Death 32a. Dee a ~Y (Mash, day, Year) 320. Daealbe How In)uy Ocamd 32c. Paa d kqury: Hans. Fym, Shea, Fectay, Parbrtrud4 AwtoahM Pda b ConpaYan ^ Npnal ^ HaNdd Ollbe ~r9an9. eb. (Spsrily) d Cauw a oe.b,~ e ^ Yw ^ No ^ Ym ^ rb ^ Acckka ^ Pendkq Inwrapatlon 32d Tka a InMrry 3~. Inpry a Wodfl 321. rt TrarnpoAaon ~ (SpecAy) 32g. Loabon d Yi(ury (stmet, aNy I awn, sea) ^ Sukdde ^ Could Nd be Darrtnkud ^ ~ ^ DrMrlOperator ^ Paaaarger ^ Padmtran ^ Yw ~ Othy • Spedhc 33e. CarlMy (duck aNy au) 3~. SI9n~ ~ • ~Mrq PM+b~ (~ +9 oauw d dedr wtun anoWsr plyek.4an hm pronanoad dash and aoepaad lain 23) To 11N bwt a daseh aoyned due m the nrybareMd96 saw(a)andmyaurmaatad--------------------------------- Prarorararq and oartltyky phyaelan (PlyaNarr both pranandng death and ardlying a sum d d.a,) 39c. uarau 33d. Dee Slpud (Month, day. yev- To the hen d my knewlad0a, deallr ooerrned a nr tksati daa, ant pea, and dw m the auae(e) end mraur w ataad_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ^ • tler/calEsarnNrerlCoraur tT-e ©~ i 2-'1... 3'r~-~a on du bees d exynYrbon and / a ImeMipatlon, M, mY opalon, dalh oarxred a tM bn». des, and pas, and due to t1r csrree(e) and manrw w etaad_ ^ 34. vertu andllddrw d Peron Who U compi.ad cyrw d oaa+ (lam 231 ryp. r PrIM IJ ~ '~ Re kdrn'e end ~ • ed% ue ~ j g ~~ ~ a ~ ,~ Dd~j~6~ed ~ h T 1/0 ~ y'/ ~ 3 F • /'~ ~ ~~ O pispositlon Pemk No. ~Jc 3 512 EXHIBIT B REGISTER OF WILLS CUMBERLAND COUNTY PENNSYLVANIA No . 20 ~ O- 00484 Estate Of : JEAN M KORKUCH CERTIFICATE OF GRANT OF LETTERS PA No . 21- ~ 0- 0484 (First, Midd/e, Last) Late Of : LOWER ALLEN TOWNSHIP CUMBERLAND COUNTY Deceased Social Security No : ~ 79-20=5175 WHEREAS, on the 10th. day of May 2 010 an instrument dated November 6th 2007 was admitted to probate as the last will of JEAN M KORKUCH (First, Middle, Lastl late of LOWER ALLEN TOWNSH/P, CUMBERLAND County, who died on the 18th day of March 2 010 and, WHEREAS, a true -copy of the wi 11 as probated i s annexed hereto . THEREFORE, I, GLENDA EARNER STRASBAUGH Register of Wi 11 s in and for CUMBERLAND County, in the Commonwealth of Pennsylvania, hereby certify that I have this day granted Letters TESTAMENTARY to: FRANC/S J KORKUCH JR who has duly qualified as EXECUTOR(R/X) and has agreed to administer ,the estate according to law, all of which fully appears of record in my office at CUMBERLAND COUNTY COURT HOUSE, CA RL lSL E, PENNS YL VA NlA . IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seal of my office on the ~Oth day of May 2070. egister o s Deputy * *NOTE* * ALL NAMES ABOVE APPEAR (FIRST, MIDDLE, LAST) Last. Will of JEAN M. KORKU~H I, JEAN M. KORKUCH, of Cumberland County, Pennsylvania, make this Will and revoke all of my prior wills and codicils. C-} N -„'" Article One yo =~ = c, --~ Distribution of My Property . ~, f ~ ~'-~ ~. ~`~ ~ ° _ 1 CJ i~ ..rat •l'~ -~ • r _. "~ Y Q Section 1. Pour-Over to My Living Trust ~`~' All of my property of whatever nature and kind, wherever situated, shall be distributed to my revocable living trust. The name of my trust is: FRANCIS J. KORKUCH, Trustee of the JEAN M. KORKUCH LIVING TRUST dated November 6, ~ 2007, and any amendments thereto. Section 2. Alternate Disposition If my revocable living trust is not in effect at my death for any reason whatsoever, then all of my property shall be disposed of under the terms of my revocable living trust as if it were in full force and effect on the date of my death. Section 3. Testamentary Trust If my spouse survives me, I authorize my personal representative to establish, with the assets of my probate estate, if any, or with any property distributed to my C~~ t x; ~- ~-T -- } •~. j ~~ r -~ ~ '~ R~1 ~.,•7 _.-~ Page 1 benefit of my spouse and my other beneficiaries under the same terms and conditions of my revocable living trust as it exists at the date of my death. I appoint the Trustee and successor Trustee named in my revocable living trust as the Trustee and successor Trustee of my testamentary trust(s). The Trustee of my testamentary .trust(s) shall have all the administrative and investment powers given to my Trustee in my revocable living trust and any other powers granted by law. - My Trustee shall be under no obligation to distribute property directly to my personal representative, but rather may distribute such property directly to the Trustee of the testamentary trust(s). Any. property distributed to my testamentary trust(s) by the Trustee of my revocable living trust shall be distributed by the Trustee of my testamentary trust(s) in accordance with the terms and conditions of my revocable living trust as it exists on the date of my death. Article Two Powers of My Personal Representative My personal representative shall have the power to perform all acts reasonably necessary to administer my estate, as well as any powers set forth in the statutes in the State of Pennsylvania relating to the powers of fiduciaries. Article Three Payment of Expenses and Taxes and Tax Elections Section .1. Cooperating with the Trustee of My Living Trust I direct my personal representative to consult with the Trustee of my revocable living trust to determine whether any expense or tax shall be paid from my trust or from my probate estate. Page 2 Section 2. Tax Elections My personal representative, in its sole and absolute discretion, may exercise any available elections with regard to any state or federal tax laws. My personal representative, in its sole and absolute discretion, may elect to have all, none, or part of the property comprising my estate for federal estate tax purposes qualify for the federal estate tax marital deduction as qualified terminable interest property under Section 2056(b)(7) of the Internal Revenue Code. My personal representative shall not be liable to any person for decisions made in good faith under this Section Section 3. Apportionment All expenses and claims and all estate, inheritance, and. death taxes, excluding any generation-skipping transfer tax, resulting from my death and which are incurred as a result of property passing under the terms of my revocable living trust or through my probate estate shall be paid without apportionment and without reimbursement from any person. However, expenses and clay ~ s, and all estate, inheritance, and death taxes assessed with regard to prope?~t~. .~~ ~ sing outside of my revocable living trust or outside of my probate estate, but in.. ~uded in my gross estate for federal estate tax purposes, shall be chargeable against the persons receiving such property. Article Four Appointment of My Personal Representative I appoint the following to be my personal representatives: FRANCIS J. KORKUCH, JR., or if FRANCIS J. KORKUCH, JR. is unwilling or unable to serve, I appoint KATHRYN A. BOUDEMAN. . I direct that my personal representatives not be required to furnish bond, surety, or other security. Page 3 I have signed this Will on November 6, 2007. 4` U ti~Zi JE M. KO ~ CH The foregoing Will was, on the day and year written above, published and declared by JEAN M. KORKUCH in our presence to be her Will. We, in her presence and at her request, and. in the presence of each other, have attested the same and have signed our names as attesting witnesses. We declare that at the time of our attestation of this Will, JEAN M. KORKUCH was, according to our best knowledge and belief, of sound mind and memory and under no undue duress or .constraint. WITNESS WITNES S Page 4 i EXHIBIT C TIDE JEAN M. KORKUCH LIVING TRUST November 6, 2007 LAW OFFICES AHRENS LAW FIRM, P.C. 52 GETTYSBURG PIKE MECHANICSBURG, PENNSYLVANIA 17055 Copyright©2007Ahrens Law Firm, P.C. The Jean M. Korkuch Living Trust Viable of Contents Article One Establishing My Trust ................................................................. 1-1 Section 1.01 Identifying My Trust .............................................................. 1-1 Section 1.02 Reliance by Third Parties on Affidavit or Certification of Trust ................................................................................... 1-1 Section 1.03 Transfemng Property to My Trust ......................................... 1-1 Section 1.04 Powers Reserved by Me as Trustmaker ................................. 1-2 Section 1.05 Grantor Trust Status ............................................................... 1-3 Article Two Family Information ...................................................................... 2-1 Article Three Trustee Succession Provisions .............................................. 3-1 Section 3.01 Resignation of a Trustee ........................................................ 3-1 Section 3.02 Trustee Succession During My Lifetime ............................... 3-1 Section 3.03 Trustee Succession After My Death ...................................... 3-2 Section 3.04 Notice of Removal and Appointment .................................... 3-4 Section 3.05 A ointment of a Cotrustee ..... pp .............................................. 3-4 Section 3.06 Corporate Fiduciaries ............................................................. 3-4 Section 3.07 Incapacity of a Trustee ..................................... ...................... 3-4 Section 3.08 Appointment of Independent Special Trustee ........................ 3-4 Section 3.09 Rights and Obligations of Successor Trustees ....................... 3-5 Article Four Administration of My Trust During My Incapacity ...................4-1 Section 4.01 Definition of My Incapacity ................................................... 4-1 Section 4.02 Determination of My Incapacity ............................................ 4-1 Section 4.03 Trust Distributions During My Incapacity ............................. 4-2 Article Five Administration of My Trust Upon My Death ............................. 5-1 Section. 5.01 My Trust Shall Become Irrevocable ...................................... 5-1 Section 5.02 ,Administrative Trust .............................................................. 5-1 Section 5.03 Payment of My Expenses and Taxes ..................................... 5-1 Section 5.04 Restrictions on Certain Payments from Qualified Retirement Plans .................................................................... 5-2 Section 5.05 Payment of Death Taxes ........................................................ 5-2 Section 5.06 No Apportionment Between Current and Future Interests .................................................................................. 5-3 Section 5.07 Coordination with My Personal Representative .................... 5-4 Section 5.08 Authority to Make Tax Elections ........................................... 5-4 Section 5.09 Payment of Charitable Bequests ............................................ 5-5 Jean M. Korkuch Living Trust i Article Six Disposition of Tangible Personal Property ................................ 6-1 Section 6:01 Specific Distribution of Corporate Interests I Own at My Death :.............................................................................. 6-1 Section 6.02 Distribution of Tangible Personal Property by Memorandum ......................................................................... 6-1 Section 6.03 Distribution of Remaining Tangible Personal Property......... 6-1 Section 6.04 Definition of Tangible Personal Property .............................. 6-1 Section 6.05 .Encumbrances and Incidental Expenses of Tangible Personal Property .............................................:..................... 6-2 Section 6.06 .Residuary Distribution ........................................................:.. 6-2 Article Seven Creation of Trust Shares Upon My Death .............................. 7-1 Section 7.01 Division of My Trust if My Husband Survives Me .............. 7-1 Section 7.02 Disposition of Property Upon Disclaimer by My Husband ................................................................................. 7-3 Article Eight The Credit Shelter Trust ........................................................... 8-1 Section 8.01 Credit Shelter Trust Beneficiary ............................................ 8-1 Section 8.02 Separate Share for Disclaimed Property ................................ 8-1 Section 8.03 Distribution of Income and Principal ..................................... 8-1 Section 8.04 Guidelines to My Trustee ....................................................... 8-1 Section 8.05 Testamentary Limited Power of Appointment ...................... 8-2 Section 8.06 Termination of the Credit Shelter Trust ................................. 8-2 Article Nine Trusts for My Beneficiaries ....................................................... 9-1 Section 9.01 Division of Remaining Trust Property ................................... 9-1 Section 9.02 Distribution of the Share for Nancy J. Randall ...................... 9-1 Section 9.03 Distribution of the Share for Francis J. Korkuch, Jr .............. 9-2 Section 9.04 Distribution of the Share for Kathryn A. Boudeman ............. 9-4 Section 9.05 Distribution of the Share for Patricia L. Kipp ........................ 9-5 Article Ten Remote Contingent Distribution ............................................... 10-1 Article Eleven Administration of Trusts for Underage and Incapacitated Beneficiaries .....................................11-1 Section 11.01 Distributions for Underage and Incapacitated Beneficiaries ........................................................................11-1 Section 11.02 Methods of Distribution ....................................................... l l -1 Section 11.03 Application of Article .......................................................... 11-3 Article Twelve Retirement Plans and Life Insurance Policies ................... 12-1 Section 12.01 Retirement Plans .................................................................. 12-1 Section 12.02 Life Insurance Policies ......................................................... 12-3 Jean M. Korkuch Living Trust ii Section 12.03 Limitation on Liability of Payor ......................................:... 12-3 Section 12.04 Collection Efforts ....................................................:............ 12-4 Section 12.05 No Obligation to Purchase or Maintain Benefits .................12-4 Article Thirteen Trust Administration :......................................................... 13-1 Section 13.01 Distributions to Beneficiaries ......................................:....... 13-1 Section 13.02 Mandatory Payments of a Pecuniary Amount ..................... 13-1 Section 13.03 No Court Proceedings .......................................................... 13-1 Section 13.04 No Bond ...........:................:.................................................. 13-2 Section 13.05. Trustee Exoneration ............................................................. 13-2 Section 13.06 Trustee Compensation ......................................................... 13-2 Section 13.07 Employment of Professionals .............................................. 13-3 Section 13.08 Exercise of Testamentary Power of Appointment ............... 13-3 Section 13.09 Determination of Principal and Income ............................... 13-4 Section 13.10 Trust Accounting ................................................................. 13-5 Section 13.11 Action of Trustees; Disclaimer ............................................ 13-5 Section 13.12 Delegation of Trustee Authority; Power of Attorney .......... 13-6 Section 13.13 Additions to Separate Trusts ................................................ 13-6 Section 13.14 - Authority to Merge or Sever Trusts ..................................... 13-7 Section 13.15 Authority to Terminate Trusts ............................................. 13-7 Section 13.16 Merger of Corporate Fiduciary ............................................ 13-8 Section 13.17 Beneficiary's Status ............................................................. 13-8 Section 13.18 Discharge of Third Persons .................................................. 13-8 Section 13.19 Certificate by Trustee ..........................:................................ 13-8 Section 13.20 Funeral and Other Expenses of Beneficiary ........................ 13-8 Section 13.21 Marital Deduction Qualification .......................................... 13-9 Article Fourteen My Trustee's Powers ........................................................ 14-1 Section 14.01 Introduction to Trustee's Powers ...~ ...................................... 14-1 Section 14.02 Execution of Documents by My Trustee ............................. 14-1 Section 14.03 Investment Powers in General ............................................. 14-1 Section 14.04 Banking Powers ................................................................... 14-2 Section 14.05 Business Powers ................................................................... 14-2 Section 14.06 Contract Powers ................................................................... 14-3 Section 14.07 Common Investments .: ........................................................ 14-3 Section 14.08 Environmental Powers ......................................................... 14-3 Section 14.09. Farm, Ranch and Other Agricultural Powers ....................... 14-4 Section 14:10 Insurance Powers ................................................................. 14-4 Section 14.11 Loans and Borrowing Powers .............................................. 14-5 Section 14.12 Nominee Powers .................................................................. 14-6 Section 14.13 Oil, Gas and Mineral Interests ............................................. 14-6 Section 14.14 Payment of Taxes and Expenses .......................................... 14-6 Section 14.15 Qualified Family Owned .Business Interests Deduction ..:... 14-6 Section 14.16 Qualified Real Property Valuation ....................................... 14-7 Section 14.17 .Real Estate Powers...........: ................................................... 14-7 Jean M. Korkuch Living Trust 111 Section 14.18 Residences and Tangible Personal Property .....~ ................... 14-7 Section 14.19 Retention and Abandonment of Trust Pro a 14-8 p rty ................... Section 14.20 Securities, Brokerage and Margin Powers ........................... 14-8 Section 14.21 Settlement ~owers ................................................................14-9 Section 14.22 Limitation on My Trustee's Powers .................................... 14-9 ~4rticle Fifteen General Provisions ............................................................... 15-1 Section 15.01 Maximum Term for Trusts ................................................... 15-1 Section 15.02 Spendthrift Provision ............................................:.............. 15-1 Section 15.03 Contest Provision ................................................................. 15-1 Section 15.04 Survivorship Presumption .................................................... 15-2 Section 15.05 Divorce or Annulment ......................................................... 15-2 Section 15.06 Changing the Situs of Administration .................................. 15-2 Section 15.07 Defirutions ............................................................................ 15-2 Section 15.08 General .Provisions and Rules of Construction .................... 15-7 Jean M. Korkuch Living Trust iv The Jean M. Korkuch Living Trust Article One Establishing My Trust The date of this trust agreement is November 6, 2007. The parties to this agreement are Jean M. Korkuch (the "Trustmaker") and Francis J. Korkuch (the "Trustee"). Section 1.01 _ Identifying My Trust My trust may be referred to as "Francis J. Korkuch, Trustee of the Jean M. Korkuch Living Trust dated November 6, 2007, and any amendments thereto." For the purpose of transferring property to my trust, or identifying my trust in any beneficiary or pay-on-death designation, any description referring to my trust shall be effective if it reasonably identifies my trust and indicates that the trust property is held in a fiduciary capacity. Section 1.02 Reliance by Third Parties on Affidavit or Certification of Trust From time to time, third parties may require documentation to verify the existence of this agreement, or particular provisions of it, such as the name or names of my Trustee or the powers held by my Trustee. To protect the confidentiality of this agreement, my Trustee may use an affidavit or a certification of trust that identifies my Trustee and sets forth the authority of my Trustee to transact business on behalf of my trust. The affidavit or certification may include pertinent pages from this agreement, such as title or signature pages. A third party may rely upon an affidavit or certification of trust that is signed by my Trustee with respect to the representations contained in the affidavit or certification of trust. A third party relying upon an affidavit or certification of trust shall be exonerated from _ any liability for actions the third party takes or fails to take in reliance upon the representations contained in the affidavit or certification of trust. A third party dealing with my Trustee shall not be required to inquire into the terms of this agreement or the authority of my Trustee, or to see to the application that my Trustee makes of funds or other property received by my Trustee. Section 1.03 Transferring Property to My Trust Any person or entity may transfer property of any kind, nature and description to my trust in any manner authorized by law. Jean M. Korkuch Living Trust 1-1 (a) Initial Funding of My Trust By execution of this agreement, I transfer, convey and assign to my Trustee the trust property described on Schedule A, attached to this agreement. (b) Acceptance by My Trustee By execution of this agreement, my Trustee accepts and agrees to hold the trust property described on Schedule A. A11 property transferred to my trust after the date of .this agreement must be acceptable to my Trustee. My Trustee may refuse to accept any property. My Trustee shall hold, administer and dispose of all trust property accepted by my Trustee for my benefit and the benefit of my beneficiaries in accordance with the terms. of this agreement. (c) Community Property. Any community property conveyed to my trust, including the income from such property and the proceeds from the sale of such property, shall retain its character as community property during my life. and the life of my husband to the same extent as if it had not been conveyed to my trust.. Section 1.04 Powers Reserved by Me as Trustmaker During my lifetime, I shall retain the powers set forth in this Section in addition to any powers that I reserve in other provisions of this agreement. (a) Action on Behalf of My Trust During any period that I am serving as a Trustee of my trust, I may act for and conduct business on behalf of my trust without the consent of any other Trustee. (b) Amendment, Restatement or Revocation I have the absolute right, at any time and from time to time, to amend, restate,, or revoke any term or provision of this agreement in whole or in part. Any amendment, restatement, or revocation must be in a written instrument signed by me. My agent acting under a valid power of attorney executed by me may amend this agreement to the extent the agent is specifically authorized to do so in the instrument appointing the agent. An amendment made by my agent in good faith shall be conclusive on all persons interested in the trust and my agent shall not be liable for the consequences of any amendment Jean M. Korkuch Living Trust 1-2 or for not having amended the trust. An amendment by my agent must be in a written instrument signed by the agent. (c) Addition or Removal of Trust Property I have the absolute right, at any time and from time to time, to add to the trust property and to remove any property from my trust. (d) Control of Income and Principal -Distributions I have the absolute right to control the distribution of income and principal from my trust. My Trustee shall distribute to me, or to such persons or entities as I may direct, as much of the net income and principal of the trust property as I deem advisable. My Trustee may distribute trust income and principal to me or for my unrestricted use and benefit, even to the exhaustion of all trust property. Any undistributed income shall be added to the principal of my rust. (e) Approval of Investment Decisions I reserve the absolute right to review and change my Trustee's investment decisions; however, my Trustee shall not be required to seek my approval before making investment decisions. Section 1.05 Grantor Trust Status By reserving the broad rights and powers set forth in Section 1.04 of this Article, I intend to qualify my trust as a "Grantor Trust" under Sections 671 to 677 of the Internal Revenue Code so that, for federal income tax purposes, I will be treated as the owner during my lifetime of all the assets held in my trust as though I held them in my individual capacity. During any period that my trust is a Grantor Trust, the taxpayer identification number of my trust shall be my .social security number, in accordance with Treasury Regulation Section 301.6109-1(a)(2). Jean M. Korkuch Living Trust 1-3 Article Two Family Information I am married to Francis J. Korkuch. Any reference in this agreement to "my husband" is a reference to Francis J. Korkuch. I have four children. Their names and dates of birth are: Nancy J. Randall, born on September 5, 1954; Francis J. Korkuch, Jr., born on February 3, 1956; Kathryn A. Boudeman, born on January 29, 1958; and Patricia L. Kipp, born on April 18, 1961 All references in this agreement to "my children" are references to these children. References to "my descendants" are to my children and their descendants. Jean M. Korkuch Living Trust 2-1 Article Three Trustee Succession Provisions Section 3.01 Resignation of a Trustee A Trustee may resign by giving notice to me. If I am deceased, a resigning Trustee shall .give notice to the income beneficiaries of the trust and to any other Trustee then serving. Section -3.02 Trustee Succession During My Lifetime During my lifetime, this Section shall govern the removal and replacement of my Trustees. (a) -Removal and Replacement by Me I may remove any Trustee with or without cause at any time. If a Trustee i~ removed, resigns or cannot continue to serve for any reason, I may serve as sole Trustee, appoint a Trustee to serve with me or appoint a successor Trustee. (b) During My Incapacity During any time that I am incapacitated, my husband shall serve as my Trustee. I~ my husband is unable to serve for any reason, the- following shall serve as my successor Trustee, in the order named: Kathryn A. Boudeman, and then Francis J. Korkuch, Jr. ~If I am incapacitated, a Trustee may be removed only for cause, which removal must be approved by a court of competent jurisdiction upon the petition of an interested party. All appointments, removals and revocations shall be by signed written instrument. Notice of removal shall be delivered to the Trustee being removed and shall be effective in accordance with the provisions of the notice. Notice o-f appointment shall be delivered to and accepted by the successor Trustee and shall become effective at that time. A copy of the notice shall be attached to this agreement. Jean M. Korkuch Living Trust 3-1 Section 3.03 Trustee Succession After My Death After my death, this Section shall govern the removal and replacement of my Trustees. (a) .Administrative Trustee I appoint the following, in the order named, to serve as successor Trustee during the administration of my Trust: Francis J. Korkuch, Jr. and then Kathryn A. Boudeman (b) Trustee of Credit Shelter Trust I appoint my husband to serve as Trustee of the Credit Shelter Trust upon creation of the Credit Shelter Trust. If my husband is unable to serve, I appoint the following, in the order named, as Trustee of the Credit Shelter Trust: Kathryn A. Boudeman Francis J: Korkuch, Jr. (c) Trustee of the Lifetime Trust for Nancy J. Randall I appoint Nancy J. Randall to serve as Trustee of the Lifetime Trust for Nancy J. Randall upon creation of the Lifetime Trust for Nancy J. Randall. If Nancy J. Randall is unable to serve, I appoint her spouse as Trustee of the Lifetime Trust for Nancy J. Randall. (d) Trustee of the Lifetime Trust for Francis J. Korkuch, Jr. I appoint Francis J. Korkuch, Jr. to serve as Trustee of the Lifetime Trust for Francis J. Korkuch, Jr. upon creation of the Lifetime Trust for Francis J. Korkuch, Jr, If Francis J. Korkuch, Jr. is unable to serve, I appoint his spouse as Trustee of the Lifetime Trust for Francis J. Korkuch, Jr. (e) Trustee of the Lifetime Trust for Kathryn A. Boudeman I appoint Kathryn A. Boudeman to serve as Trustee of the Lifetime Trust for Kathryn A. Boudeman upon creation of the Lifetime Trust for Kathryn A. Boudeman. If Kathryn A. Boudeman is unable to serve, I appoint her spouse as Trustee of the Lifetime Trust for Kathryn A. Boudeman. Jean M. Korkuch Living Trust 3-2 (f) Trustee of the Lifetime Trust for Patricia L. Kipp I appoint Patricia L. Kipp to serve as Trustee of the Lifetime Trust for Patricia L. Kipp upon creation of the Lifetime Trust for Patricia L. Kipp. If Patricia L. Kipp is unable to serve, I appoint her spouse as Trustee of the Lifetime Trust for Patricia L. Kipp. (g) Removal of a. Trustee My husband may not remove a Trustee of any trust created under this agreement, except for cause, which removal must be approved by a court of competent jurisdiction. In no event shall the court petitioned to approve the removal of a Trustee attain any jurisdiction over the trust except to the .extent necessary to approve or disapprove removal of a Trustee. A Trustee may be removed only for cause, which removal must be approved by a court of competent jurisdiction upon the petition of any beneficiary. In no event shall the court petitioned to approve the removal of a Trustee acquire any jurisdiction over the trust except to the extent necessary to approve or disapprove removal of a Trustee. If a beneficiary is a minor or is incapacitated, the parent or legal representative of the beneficiary may act on behalf of the beneficiary. (h) Default of Designation If the o~ ce of Trustee of a .trust created under this agreement is vacant and no designated successor Trustee is able and willing to act as Trustee, my husband shall appoint an attorney, certified public accountant or corporate fiduciary as successor Trustee. If my husband is uinable or unwilling to act, the primary beneficiary of the trust shall appoint an attorney, certified public accountant or corporate fiduciary as successor Trustee. Any beneficiary may petition a court.of competent jurisdiction to appoint a successor Trustee to fill any vacancy remaining unfilled after a period of 30 days. By malting such appointment, the court shall not thereby acquire any jurisdiction over the trust, except to the extent necessary for making the appointment. If a beneficiary is a minor or is incapacitated, the parent or legal representative of the beneficiary may act on behalf of the beneficiary. Jean M. Korkuch Living Trust 3-3 Section 3.04 Notice of .Removal and Appointment Notice of removal shall be in writing .and shall be delivered to the Trustee being removed, along with any other Trustees then serving. The notice of removal shall be effective in accordance with its provisions. Notice of appointment shall be in writing and shall be delivered to the successor Trustee and any other Trustees then serving. The appointment shall become effective at the time of acceptance by the successor Trustee. A copy of the notice shall be attached to this agreement. Section 3.05 Appointment of a .Cotrustee Any individual Trustee may appoint an individual or a corporate fiduciary as a Cotrustee. A .Cotrustee so named shall serve only as long as the Trustee who appointed such Cotrustee serves (or, if such Cotrustee was named by more than one Trustee acting together, by the last to serve of such Trustees), and such Cotrustee shall not become a successor Trustee upon the death, resignation, or incapacity of the Trustee who appointed such Cotrustee, unless so appointed under the terms of this agreement Although such Cotrustee may exercise all the powers of the appointing Trustee, the combined powers of such Cotrustee and the appointing Trustee shall not exceed the powers of the appointing Trustee alone. The Trustee appointing a Cotrustee may revoke the appointment at any time with or without cause. Section 3.06 Corporate Fiduciaries Any corporate fiduciary serving under this agreement as a Trustee must be a bank, trust company, or~public charity that is qualified to act as a fiduciary under applicable federal and state law and -that is not related or subordinate to any beneficiary within the meaning of Section 672(c) of the Internal Revenue Code. Section 3.07 Incapacity of a Trustee If any individual Trustee becomes incapacitated, it shall not be necessary for the incapacitated Trustee to resign as Tru"stee. For Trustees other than me, a written declaration of incapacity by the Cotrustee, if any, or, if none, by the party designated to succeed the incapacitated Trustee, if made in good faith and if supported by a written opinion of incapacity by a physician who has examined the incapacitated Trustee, will terminate the trusteeship. Section x.08 Appointment of Independent Special Trustee If for any reason the Trustee of any trust created under this agreement is unwilling or unable to act with respect to any trust property or any provision of this agreement, the Trustee shall appoint, in writing, a corporate fiduciary or an individual to serve as an Independent Special Trustee as to such property or with respect to such provision. The Jean M. Korkuch Living Trust 3-4 Independent Special Trustee appointed shall not be related or subordinate to any beneficiary of the trust within the meaning of Section 672(c) of the Internal Revenue Code. An Independent Special Trustee shall exercise all fiduciary powers granted by this agreement unless expressly limited elsewhere in this agreement or by the Trustee in the instrument appointing the Independent Special Trustee. An Independent Special Trustee may resign at any time by delivering written notice of resignation to the Trustee. Notice of resignation shall be effective in accordance with the terms of the notice. -Section 3.09 Rights and Obligations of Successor Trustees Each successor Trustee serving under this agreement, whether corporate or individual, shall have all of the title, rights, powers and privileges granted to the initial Trustee named under this agreement. In addition, each successor Trustee shall be subject to all of the restrictions imposed upon, as well as all obligations and duties, both discretionary and ministerial, given to the initial Trustee named under this agreement. Jean M. Korkuch Living Trust 3-5 Article Four Administration of My Trust During My Incapacity Section 4.01 Definition of My Incapacity I shall. be considered incapacitated during any time that, because of age, illness, mental disorders, dependence on prescription medications or other substances, or any .other cause, I am unable to effectively manage my property or financial affairs. Section 4.02 Determination of My Incapacity For purposes of this agreement, I am incapacitated if I am determined to be so under any one of the following subsections. (a) Private Determination I shall be deemed incapacitated if my "disability panel," by unanimous written opinion, signed by each member of the disability panel, determines that my then existing circumstances fall within the definition of incapacity as provided in Section 4.01. I shall be deemed restored to capacity if each member of my disability panel signs a written opinion that I can effectively manage my property and financial affairs. (1) Disability Panel My disability panel shall consist of the following individuals: My Spouse and My Children My disability panel may consult with my primary care physician, my attending physician or any medical specialist for assistance in determining my incapacity. (2) Replacement of Disability Panel Members If any member of my disability panel is for any reason unable to serve on my disability panel, then my disability panel will consist of the remaining named individuals. If all of the named individuals are unable to serve, then my Jean M. Korkuch Living Trust 4-1 disability panel will consist of my primary care physician or attending physician and the individual or corporate fiduciary that would then be serving as my Trustee. if I had already been declared incapacitated. (b) Court Determination I .shall be deemed incapacitated if a court of competent jurisdiction determines that I am legally incapacitated, incompetent, or otherwise unable to effectively manage my property or financial affairs. (c) Detention or Disappearance I shall be deemed incapacitated if I cannot effectively manage my property or financial affairs due to my unexplained disappearance or absence for more than 30 days, or if I am detained under duress. My disappearance, absence, or detention under duress may be established by an affidavit of my Trustee, or, if no Trustee is serving under this agreement, by the affidavit of any beneficiary under this agreement. The affidavit shall describe the circumstances of my disappearance, absence, or detention under duress. A third party dealing with my Trustee in good faith may always rely on the representations contained in the affidavit. I shall be deemed restored to capacity upon my written notice to the successor Trustee that I can manage my property and financial affairs. Section 4.03 Trust Distributions During My Incapacity During any period of time that I am incapacitated, my Trustee shall administer my trust and distribute its net income and principal as provided in this Section. (a) Distributions for My Benefit My Trustee shall regularly and conscientiously -make appropriate distributions of trust income and principal for my .general welfare and comfort under the circumstances existing at the time such distributions are made. Distributions under this subsection shall include payments for any of my enforceable legal obligations. My Trustee may also make distributions for the payment of insurance premiums for insurance policies owned by me or by my trust; including but not limited to, life, medical, disability, property and casualty, errors and omissions and long-term health care insurance policies. Jean M. Korkuch Living Trust 4-2 My Trustee is authorized to honor pledges and continue to make gifts to charitable organizations that I have regularly supported in the amounts I have customarily given. The examples included in this subsection are for purposes of illustration only and are not intended to limit the authority of my Trustee to make distributions for my benefit that my Trustee determines to be appropriate. (b) Manner of Making Distributions My "Trustee may make distributions for my benefit in any one or more of the following ways: To me, but only to the extent I am able to manage such distributions; To other persons and entities for my use and benefit; To my agent or attorney-in-fact authorized to act for me under a legally valid durable power of attorney executed by me prior to my incapacity; To my guardian or conservator who has assumed responsibility for me under any court order, decree or judgment issued by a court of competent jurisdiction. (c) Distributions for the Benefit of My Husband or Dependents My Trustee may distribute as much of the net income and- principal of my trust as my Trustee deems necessary for the health, education, maintenance or support of my husband. My Trustee may also distribute as much of the net income and principal as my Trustee deems necessary for the health, education, maintenance or support of other persons than my Trustee determines to be .dependent on me for support. (d) Guidance for My Trustee Regarding Distributions When making distributions under subsections (a) and (c), my Trustee shall give consideration first to my needs and the needs of my husband and then to the needs of those persons dependent on me. When making distributions under subsection (c), I request, .but do not require, that my Trustee, in its sole and absolute discretion, consider other income and resources available to the beneficiaries. My Trustee may Jean M. Korkuch Living Trust 4-3 make unequal distributions, distributions to some but not all beneficiaries or no distributions. A distribution made to a beneficiary under this Section shall not be considered an advance and shall not be charged against the share of the beneficiary that may be distributable under any other provision of this agreement. Jean M. Korkuch Living Trust 4-4 Article Five Administration of My Trust Upon My Death Section 5.01 My Trust Shall Become Irrevocable Upon my death, my trust shall become irrevocable and my social security number may no longer be ..used to identify my trust. My Trustee shall apply for a separate taxpayer identification number for my trust. Section 5.02 Administrative Trust After my death and prior to the distribution of trust property as provided in the subsequent Articles of this agreement, my trust shall be an administrative trust but may continue to be known as the Jean M. Korkuch Living Trust. My administrative trust shall exist for a reasonable period of time necessary to complete the administrative tasks set forth in thisArticle. - Section 5.03 Payment of My Expenses and Taxes My Trustee is authorized but not directed to pay from the administrative trust: Expenses of my last illness, funeral and burial or cremation, including expenses of memorials and memorial services; Legally enforceable claims against me or my estate; Expenses of administering my trust and my estate; and Court ordered allowances for those dependent upon me. These authorized payments are discretionary with my Trustee. My Trustee may make decisions on these payments without regard to any limitation on payment of such expenses imposed by law and may make payments without obtaining the approval of any court. No third party may enforce any claim or right to payment against my trust by virtue of this discretionary authority. My Trustee shall not pay any administrative expenses from assets passing to an organization that qualifies for the federal estate tax charitable deduction or to asplit-interest charitable trust or from the net income of property qualifying for the estate tax marital deduction, if .such payment would result in a reduction in the estate tax marital deduction available to my estate under Section 2056(b) of the. Internal Revenue Code or violate the provisions of Treasury Regulation Section 20.2056(b)-4(d). Jean M. Korkuch Living Trust 5-1 My Trustee shall pay death taxes out of the principal of the trust property as provided in Section 5.05. If, however, a probate estate is opened within six months from the date of my death, my Personal Representative shall pay claims, expenses and death taxes from my probate estate to the extent that the cash and readily marketable assets included in my probate estate are sufficient to pay such items unless my Trustee has already paid-them. Section 5.04 Restrictions on Certain Payments from Qualified Retirement Plans The "designation date" shall mean September 30 of the calendar year following the calendar year in which my death occurs, or such other date as shall be established by Treasury Regulations or other tax law authority as the final date for determining whether this trust meets the requirements for treatment of the trust's oldest beneficiary as if he or she had been named directly as beneficiary of any qualified retirement. plan payable to this trust. Notwithstanding any other provision of this agreement or state law to the contrary, my Trustee may not, on or after the "designation date", distribute to or for the benefit of my estate, any charity or any other non-individual beneficiary any qualified retirement benefit payable to a trust created under this agreement. It is .my intent that all such qualified retirement benefits held by or payable to this trust on or after the designation date be distributed to or held for only individual beneficiaries, within the meaning of Section 401(a)(9) of the Internal Revenue Code. Accordingly I direct that qualified retirement benefits not be used or applied on or after the designation date for payment of my debts, taxes, expenses of administration or other claims against my estate or for payment of estate, inheritance or similar transfer taxes due on account of my death (other than those directly attributable to and the -legal obligation of a particular Qualified Retirement Plan). This Section shall not apply to any bequest or expense that is specifically directed to be funded with qualified retirement benefits. Section 5.05 Payment of Death Taxes For the purposes of this Article, the term "death taxes" shall refer to any taxes imposed by reason of my death by federal, state or local authorities, including but not limited to estate, inheritance, gift, and direct-skip generation-skipping transfer taxes. For purposes of this Section, death taxes shall not include any additional estate tax imposed by Section 2031(c)(5)(C), Section 2032A(c) or Section 2057(f) of the Internal Revenue Code or any other comparable recapture tax imposed by any taxing authority. Nor shall death taxes include any generation-skipping transfer tax, other than a direct skip generation-skipping transfer .tax. Except as otherwise provided in this Section or elsewhere in this. agreement, my Trustee shall provide for payment of all death taxes from the administrative trust without apportionment. My Trustee shall not seek contribution toward or recovery of any such payments from any individual. Jean M. Korkuch Living Trust 5-2 (a) Protection of Exempt Property In no event shall death taxes be allocated to or paid from any assets that are not included in my gross estate for federal estate tax purposes. (b) Protection of the Marital Deduction No death taxes shall be paid from or allocated to any property qualifying for the federal- estate tax marital deduction. (c) Protection of the Charitable Deduction No death taxes shall be allocated to or paid from any assets passing to an organization that qualifies for the federal estate tax charitable deduction, or from any assets passing to asplit-interest charitable trust, unless my Trustee has first used all other assets available to my Trustee to pay the taxes. (d) Property Passing Outside of My Trust Except as to qualified retirement benefits, death taxes imposed with respect to property included in my gross estate for death tax .purposes but passing outside of my trust shall be apportioned among the persons and entities benef ted in the proportion that the taxable value of the property or interest bears to the total taxable value of all property and interests included in my gross estate for death tax purposes. The values to be used for the apportionment shall be the values as finally determined under federal, state or local law as the case may be. I direct that any death tax paid as a result of the inclusion in my taxable estate of property held in a qualified. terminable interest property "QTIP" trust created for me by my husband be apportioned to and collected from the assets of the QTIP trust as provided in Section 2207A of the Internal Revenue Code. Section 5.06 No Apportionment Between Current and Future Interests No interest in income and no estate for years or for life or other temporary interest in any. property or trust are subject to apportionment as between the temporary interest .and the remainder. The tax on the temporary interest and the tax, if any, on the remainder are chargeable against the corpus of the property or trust subject to the temporary interest and remainder. Jean M. Korkuch Living Trust 5-3 Section 5.07 Coordination with My Personal. Representative The following provisions are intended to help facilitate the coordination between my Personal Representative,. if any, and my Trustee. These provisions apply even if my Personal Representative and my Trustee are the same person or entity. (a) Reliance on My Personal Representative My Trustee may rely upon the written request of my Personal Representative for payments authorized under this Article and the amounts included in such payments without computing the. sums involved. If a payment is made under this Article to my Personal Representative, my Trustee shall not have any duty to inquire into the application of the payment. (b) Receipt of Probate Property My Trustee may accept or decline any distributions of property tendered to my Trustee by my Personal Representative. As to property deemed acceptable by my Trustee, my Trustee may accept the property without audit and without obligation to review the records of my Personal Representative. (c) Purchase of Assets from and Loans to My Probate Estate My Trustee is authorized to purchase and retain, as an investment for my trust estate, any property that forms a part of my probate estate. My Trustee may make loans, with or ~ without security, to my probate estate. My Trustee shall not be liable for any loss suffered by my trust as a result of the exercise of the powers granted to my Trustee. in this subsection. (d) Discretionary Distributions to My Personal Representative My Trustee is authorized to distribute to my probate estate, as a beneficiary of this .trust, cash or other trust property, including accrued income, to whatever extent my Trustee determines it to be in the best interests of the beneficiaries of my trust. Section 5,08 Authority to Make Tax Elections Following my death, I authorize my Trustee to make tax elections as provided in this Section. If, however, a Personal Representative is appointed for my probate estate and as my Personal Representative is the recipient of specific statutorily delegated authority relative to any tax election, the discretionary authority granted my Trustee relative to the tax election shall be subordinate to the statutorily delegated authority. Jean M. Korkuch Living Trust 5-4 (a) Tax Elections My Trustee's authority to make tax elections shall include, but shall not be limited to, the right to choose the alternate valuation date, the right to elect whether to take administration expenses as estate tax deductions or income tax deductions, the right to allocate my, unused generation-skipping exemption to all or any portion of the trust property, the right to make special use valuation elections, and-the right to defer p~.yment of all or any portion of any taxes. My Trustee may elect to treat my administrative trust as part of my estate for federal or state income tax purposes or both. My Trustee may elect to have trust property qualify for the "family owned business deduction" authorized under Section 2057 of the Internal Revenue Code. My Trustee may enter. into any agreement on behalf of my trust that is necessary to validly make such election under the Internal Revenue Code. My Trustee may make equitable adjustments between income and principal on account of any tax elections made by my Trustee. (b) ~411ocation of GST Exemption My Trustee may elect to allocate or not allocate any portion of the available GST exemption under Section 2631 of the Internal Revenue Code, or a counterpart exemption under any applicable state law, to any property of which I am the transferor or deemed .transferor for generation- skipping transfer tax purposes, including any property transferred by me during my life as to which I did not make an allocation prior to death. The exercise of such discretion shall be based on the transfers, gift tax returns and other information known to my Trustee, with no requirement that allocations benefit the various transferees or beneficiaries equally, proportionally, or in any other particular manner. (c) Qualified Conservation Easements My Trustee may create a qualified conservation easement, as defined in Section 2031(c)(8)(A) of the Internal Revenue Code in any land held by my trust and make the .necessary election provided by Section 2031(c)(6). Sec#ion 5.09 Payment of Charitable Bequests I instruct my Trustee to satisfy all of my charitable gifts and bequests, to the extent possible, from property that constitutes income in respect of a decedent. Jean M. Korkuch Living Trust 5-5 Article Six Disposition of Tangible Personal Property Section 6.41 Specific Distribution of Corporate Interests I Own at My Death As soon as practicable after my death, my Trustee shall distribute 'the corporate stock I own in my family business to my children, per stirpes, in equal shares. Section 6.02 Distribution of Tangible Personal Property by Memorandum I reserve the right to make dispositions of items of tangible personal property by a signed written memorandum executed after I sign this agreement that refers to my trust and lists items of tangible personal property and designates the beneficiary of each item. If I execute a memorandum, the memorandum is to be incorporated by .reference into this agreement to the extent permitted by law. I direct that upon my death, my Trustee distribute the items of tangible personal property listed in the memorandum, together with any insurance policies covering such property and claims under such policies, as provided in the memorandum. Should I leave multiple written memoranda that conflict as to the disposition of any item of tangible personal property, the memorandum with the most recent date shall control as to those items that are in conflict. If the memorandum with the most recent date conflicts with a provision of this agreement as to the specific distribution of any item of tangible personal property, the provisions of the memorandum with the most recent date shall control as to those items that are in conflict. If the memorandum can not legally be incorporated by reference, the memorandum shall then be treated as an amendment to my trust and I request that my Trustee follow my wishes and distribute the items of tangible personal property listed in the memorandum according to its terms. Section 6.03 Distribution of Remaining Tangible Personal Property My Trustee shall distribute any tangible personal property not disposed of by a written memorandum under the Articles that follow. Section 6.04 Definition of Tangible Personal Property For purposes of this Article, my tangible personal property shall include but not be limited to my household furnishings, appliances and fixtures, works of art, motor Jean M. Korkuch Living Trust 6-1 vehicles, pictures, collectibles, personal wearing apparel and jewelry, books, sporting goods, and hobby paraphernalia. My tangible personal property shall not include any property that my Trustee, in its sole .and .absolute discretion, determines to be part of any business or business interest owned by me or my trust. If my Trustee receives .property to be distributed under this Article from my probate estate or in any other manner after my death, my Trustee shall distribute the property, free of trust, in accordance with this Article. The fact that an item of tangible personal property was not received by my trust until after my death shall not affect the validity of 'the gift. If property to be distributed under this Article is not part of the trust property upon my death and is not subsequently transferred to my Trustee from my probate estate or in any other manner after my death, then the specific distribution of property made in this Article shall be considered null .and void, without any legal or binding effect. Section 6.05 Encumbrances and Incidental Expenses of Tangible .Personal Property My Trustee shall distribute property under this Article subject to any liens, security interests or other encumbrances on the property. My Trustee shall pay, as an administration expense, the reasonable expenses of storing, insuring, packing, transporting and otherwise caring for my tangible personal property until each item of property is actually delivered to the appropriate beneficiary. Section 6.06 Residuary Distribution Any tangible personal property not distributed under this or prior Articles of this agreement shall be distributed as provided in the Articles that follow. Jean M. Korkuch Living Trust 6-2 Article Seven Creation of Trust Shares Upon My Death If my husband survives me, my Trustee shall divide the remaining trust property into two separate shares as provided in Section 7.01. One share shall be designated the "Marital Share" and the other share shall be designated the "Non-Marital Share." If my husband has predeceased me, my Trustee shall administer the remaining -trust property as provided in Article Nine. Section 7.01 Division of My Trust if My Husband Survives Me My Trustee shall divide the remaining trust property into the Marital Share and the Non- Marital Share as provided in this Section, (a) Creation of the Marital Share My Trustee shall allocate to the Marital Share a fractional share of the remaining trust property calculated as follows: (1) The Numerator The numerator of the fraction shall equal the minimum value, assuming the value qualifies for the federal estate tax marital deduction, sufficient to reduce the federal estate tax to the lowest possible amount. In computing the numerator, my Trustee shall take into account my gifts (including gifts treated as made by me) and all deductions, exclusions, credits and reductions in value allowed in computing such tax; provided, however, that any state .death tax credit shall be taken into account for this purpose only to the extent that it does not increase the amount of state death taxes payable. (2) The Denominator The denominator shall consist of the value of the remaining trust property as finally determined for federal estate tax purposes. The Marital Share shall carry its pro rata share of the income, provided that in no event shall the Marital Share receive less income than that required to be paid to my husband under applicable state law. Jean M. Korkuch Living Trust 7-1 My Trustee shall distribute the Marital Share to my husband outright, free of trust. (b) Creation of the Non-Marital Share My Trustee shall allocate the balance of the trust property to the Non- Marital Share. My Trustee shall administer the Non-Marital Share as provided in Article Eight. (c) Funding the Fractional Share My Trustee shall have complete authority and discretion to satisfy the fractional gift in cash or in kind, or partly in cash and partly in kind, or in undivided interests in property. To the extent that there are insufficient assets qualifying for the federal estate tax marital deduction to fully fund the Marital Share, the amount of the funding to the Marital Share shall be reduced accordingly, and I acknowledge that the amount of funding may be affected by actions of my Trustee and my Personal Representative in making certain tax elections. The fraction, once calculated as set forth above, shall be fixed and shall not vary with changes in the value of the property subsequent to the valuation date used for federal estate tax purposes. Since the fractional gift is not intended to be a gift of a specified dollar amount or pecuniary in nature, my Trustee shall apply the fraction to the assets of the trust at their actual value on the effective date or dates of allocation so that the actual value of the fractional share of the trust property resulting from the application of such fraction will reflect. fluctuations in the value of the trust property. My Trustee may fund the fractional share on a non pro rata basis provided that funding is based on the total fair market value of the assets on the date or dates of allocation. Allocations of assets by my Trustee shall be limited as set forth below. (1) Ineligible Assets My Trustee shall not allocate property or the proceeds of any property to the Marital Share that does not qualify for the federal estate tax marital deduction. (2) Tax Consequences of Certain Allocations I request that my Trustee always consider the tax consequences of allocating or distributing to the Marital Share any policy of insurance that insures the life of my husband, property subject to the foreign death credit, property on which a tax credit is available, or property that Jean M. Korkuch I/iving Trust ?-2 is -income in respect of a decedent under the Internal Revenue Code. (3) My Husband's Interest in Community Property Any interest my husband has in community property that is or becomes trust property at my death, even though not included in my gross estate for federal estate tax purposes and not included in the computation for the fractional share, shall be allocated to the Marital Share. My husband shall have the absolute and unrestricted right to withdraw all of the net income and trust principal consisting of his community property. Section 7.02 Disposition of Property Upon Disclaimer by My Husband My husband shall have. the right within the time and in the manner provided by law to disclaim any portion or all of the property passing to or for his benefit under this agreement. If my husband disclaims any portion of the property that would otherwise be allocated to the Marital Share, my Trustee shall add the disclaimed property to the Non- Marital share. If my husband disclaims the interest he has in any portion of the Non- Marital Share, my Trustee shall dispose of the disclaimed interest under the provisions of this agreement as though he had predeceased me. My husband's right to disclaim any portion or all of the property passing to or for his benefit under this agreement shall either be exercised by my husband personally, or by any fiduciary or agent appointed by my husband who is specifically empowered to exercise his right to disclaim by the terms of the appointment, or under applicable law. Jean M. Korkuch Living Trust 7-3 Article Eight The Credit Shelter Trust My Trustee shall hold and administer the Non-Marital Share in a separate trust as provided in this Article. The trust will be referred to as the "Credit Shelter Trust." Section 8.01 Credit Shelter Trust Beneficiary My husband shall be the only beneficiary of the Credit Shelter Trust during his lifetime. Section 8.02 Separate Share for Disclaimed Property To the extent that any property is added to the Credit Shelter Trust as the result of a qualified disclaimer by my husband, the property shall be held in a separate share of the Credit Shelter Trust during the lifetime of my husband, and shall be separately administered in accordance with all of the provisions of this Article except that Section 8.05, which grants my husband a limited power of appointment, shall not apply to the separate share. The sole purpose of maintaining the separate share is to keep the disclaimed property, together with all income from the- property that is accumulated in the trust, separate from the other property of the Credit Shelter Trust over which my husband has a power of appointment and avoid the possible disqualification of an otherwise qualified disclaimer under Section 2518 of the Internal Revenue Code. Section 8.03 Distribution of Income and Principal My Trustee shall distribute to my husband. as much income and principal of the Credit Shelter Trust as my Trustee determines is necessary or advisable for his health, education, maintenance or support. Any undistributed net income shall be accumulated and added to principal. Section 8.04 Guidelines to My Trustee My husband is the primary beneficiary of the Credit Shelter Trust. In making discretionary distributions under this Article, my Trustee should bear in mind that my primary. concern and objective is to provide for the well-being of my husband and the preservation of principal is not as important as the accomplishment of this objective. Jean M. Korkuch Living Trust 8-1 Section 8.05 Testamentary Limited Power of Appointment My husband shall have the testamentary limited power to appoint all or any portion of the principal and undistributed income remaining in the Credit Shelter Trust among one or more persons or entities. My husband may not exercise this testamentary limited power of appointment to appoint to .himself, his estate, his creditors, or the creditors of his estate. My husband may not exercise this testamentary limited power of appointment to create another power of appointment that, under the applicable local law, can be validly exercised so as to postpone the vesting of any estate or interest in such property for a period ascertainable without regard to the date of the creation of the first power; furthermore, my husband is prohibited from exercising the power to suspend the absolute ownership or power of alienation of the property for a period ascertainable without regard to the date of the creation of the first power. I intend that this testamentary power of appointment be a limited power of appointment and not a general power of appointment as defined in Section 2041 of the Internal Revenue Code. Section 8.06 Termination of the Credit Shelter Trust The Credit Shelter Trust shall terminate upon the death of my husband and my Trustee shall administer the unappointed balance or remainder of the Credit Shelter Trust as provided in Article Nine. Jean M. Korkuch Living Trust 8-2 Article- Nine Trusts for My Beneficiaries Upon the death of the survivor of my husband and me, my Trustee shall administer and distribute my remaining trust property (not distributed under ..prior Articles of this agreement) under the terms of this Article. Section 9.01 Division of Remaining Trust Property My Trustee shall divide my remaining trust .property into shares as follows: Name Nancy J. Randall Francis J. Korkuch, Jr. Kathryn A. Boudeman Patricia L. Kipp Relationship Share Daughter 1 /4 Son 1 /4 Daughter 1 /4 Daughter 1 /4 My Trustee shall administer the share of each beneficiary as provided in the Sections that follow. Section 9.02 Distribution of the Share for Nancy J. Randall My Trustee shall administer the share set aside for Nancy J. Randall in trust as provided in this Section. (a) Distributions of Income and Principal My Trustee shall distribute to Nancy J. Randall as much of the income and principal of her trust as my Trustee determines is necessary or advisable for her health, education, maintenance or support. Any undistributed net income shall be accumulated and added to principal. (b) Distribution Upon the Death of Nancy J. Randall Subject to the terms of the next paragraph; Nancy J. Randall shall have the unlimited and unrestricted testamentary general power to appoint all or any portion of the principal and undistributed income remaining in her trust at her death among one or more persons or entities and the creditors of Nancy J. Randall's estate. Nancy J. Randall shall have the sole and exclusive right to exercise this general power of appointment. Jean M. Korkuch Living Trust 9-1 Nancy J. Randall may not exercise this power of appointment to appoint to herself, her estate, her creditors, or the creditors of her estate from the "limited share" of her trust. For purposes of this power of appointment, the "limited share" of Nancy J. Randall's trust is that portion of her trust that has an inclusion ratio for generation-skipping transfer tax purposes of zero or which, in the absence of the exercise of the power of appointment, would not constitute a taxable generation-skipping transfer at her death. If the generation-skipping tax does not then apply, the limited share shall be Nancy J. Randall's entire trust. Insofar as any part of Nancy J. Randall's trust .shall not be effectively appointed, my Trustee shall distribute the remaining unappointed balance per stirpes in trusts to the descendants of Nancy J. Randall. If Nancy J. Randall has no living descendants, my Trustee shall distribute the balance of the trust property per stirpes in trusts to my descendants. My Trustee shall administer any such trust under the same terms as Nancy J. Randall's trust. If I have no living descendants, my Trustee shall distribute the balance of the trust property as provided in Article Ten. (c) Distribution if Nancy J. Randall is Deceased If Nancy J. Randall should die before the establishment of her trust, my Trustee shall distribute Nancy J. Randall's share per stirpes in trusts to the descendants of Nancy J. Randall. My Trustee shall administer the trusts under the same provisions as Nancy J. Randall's trust. If Nancy J. Randall has no descendants, my Trustee shall distribute Nancy J. Randall's share pro rata to the other beneficiaries named in this Article. If there are no other named beneficiaries my Trustee shall distribute the remaining property under the terms of Article Ten. Section 9.03 Distribution of the Share for Francis J. Korkuch, Jr. My Trustee shall administer the share set aside for Francis J. Korkuch, Jr. in trust as provided in this Section. (a) Distributions of Income and Principal My Trustee shall ,distribute to Francis J. Korkuch, Jr. as much of the income and principal of his trust as my Trustee determines is necessary or advisable for his health, education, maintenance or support. Any undistributed net income shall be accumulated and added to principal. Jean M. Korkuch Living Trust 9-2 (b) Distribution Upon the Death of Francis J. Korkuch, Jr. Subject to the terms of the next paragraph, Francis J. Korkuch, Jr. shall have the unlimited and. unrestricted testamentary general power to appoint all or any portion of the principal and undistributed income remaining in his trust at his death among one or more persons or entities and the creditors of Francis J. Korkuch, Jr.'s estate. Francis J. Korkuch, Jr. shall have the sole and exclusive right to exercise this general power of appointment. Francis J. Korkuch, Jr. may not exercise this power of appointment to appoint to himself, his estate, his creditors, or the creditors of his estate from the "limited share" of his trust. For purposes of this power of appointment, the "limited share" of Francis J. Korkuch, Jr.'s trust is that portion of his trust that has an inclusion ratio for generation-skipping transfer tax purposes of zero or which, in the absence of the exercise of the power of appointment, would not constitute a taxable generation-skipping transfer at his death. If the generation-skipping tax does not then apply, the limited share shall be Francis J. Korkuch, Jr.'s entire trust. Insofar as any part of Francis J. Korkuch, Jr.'s trust shall not be effectively appointed, my Trustee shall distribute the remaining unappointed balance per stirpes in trusts to the descendants of Francis J. Korkuch, Jr. If Francis J. Korkuch, Jr. has no living descendants, my Trustee shall distribute the balance of the trust property per stirpes in trusts to my descendants. My Trustee shall administer any such trust under the same terms as Francis J. Korkuch, Jr.'s trust. If I have no living descendants, my Trustee shall distribute the balance of the trust property as provided in Article Ten. (c) Distribution if Francis J. Korkuch, Jr. is Deceased If Francis J. Korkuch, Jr. should die before the establishment of his trust, my Trustee shall distribute Francis J. Korkuch, Jr.'s share per stirpes in trusts to the descendants of Francis J. Korkuch, Jr. My Trustee shall administer the trusts under the same provisions as Francis J. Korkuch, Jr.'s trust. If Francis J. Korkuch, Jr. has no descendants, my Trustee shall distribute Francis J. Korkuch, Jr.'s share pro rata to the other beneficiaries named in this Article. If there are no other named beneficiaries my Trustee shall distribute the remaining .property under the terms of Article Ten. Jean M. Korkuch Living Trust 9-3 Section 9.04. Distribution of the Share for Kathryn A. Boudeman My Trustee shall administer the share set aside for Kathryn A. Boudeman in trust as provided in this Section. (a) Distributions of Income and Principal My Trustee shall distribute to Kathryn A. Boudeman as .much of the income and principal of her trust as my Trustee determines is necessary or advisable for her health, education, maintenance or support. Any undistributed net income shall be accumulated and added to principal. (b) Distribution Upon the Death of Kathryn A. Boudeman Subject to the terms of the next paragraph, Kathryn A. Boudeman shall have the unlimited and unrestricted testamentary general. power to appoint all or any portion of the principal, and undistributed income remaining in her trust at her death among .one or more persons or entities and the creditors of Kathryn A. Boudeman's estate. Kathryn A. Boudeman shall have the sole and exclusive right to exercise this general power of appointment. Kathryn A. Boudeman may not exercise this power of appointment to appoint to herself, her estate, her creditors, or the creditors- of her estate from the "limited .share" of her trust. For purposes of this power of appointment, the "limited share" of Kathryn A. Boudeman's trust is that portion of her trust that has an inclusion ratio for generation-skipping transfer tax purposes of zero or which, in the absence of the exercise of the power of appointment, would not constitute a taxable generation-skipping transfer at her death. If the generation-skipping tax does not then apply, the limited share shall be Kathryn A. Boudeman's entire trust. Insofar as any part of Kathryn A. Boudeman's trust shall not be effectively appointed, my Trustee shall distribute the remaining unappointed balance per stirpes in trusts to the descendants of Kathryn A. Boudeman. If Kathryn A. Boudeman has no living descendants, my Trustee shall distribute the balance of the trust property per stirpes in trusts to my descendants. My Trustee shall- administer any such trust under the same terms as Kathryn A. Boudeman's trust. If I have no living descendants, my Trustee shall distribute the balance of the trust property as provided in Article Ten. (c) Distribution if Kathryn A. Boudeman is Deceased If Kathryn A. Boudeman should .die before the establishment of her trust, my Trustee shall distribute Kathryn A. Boudeman's share per stirpes in Jean M. Korkuch Living Trust 9-4 trusts to the descendants of Kathryn. A. Boudeman. My Trustee shall administer the trusts under the same provisions as Kathryn A. Boudeman's trust. If Kathryn A. Boudeman has no descendants, my Trustee shall distribute Kathryn A. Boudeman's share pro rata to the other beneficiaries named in this Article. If there are no other named beneficiaries my Trustee shall distribute the remainingproperty under the terms of Article Ten. Section 9.05 Distribution of the Share for Patricia L. Kipp My Trustee shall administer the share set aside for Patricia L. Kipp in trust as provided in this Section. (a) Distributions of Income and Principal My Trustee shall distribute to Patricia L. Kipp as much of the income .and principal of her trust as my Trustee determines is necessary or advisable for her health, education, maintenance or support. Any undistributed net income shall be accumulated and added to principal. (b) Distribution Upon the Death of Patricia L. Kipp Subject to the terms of the next paragraph, Patricia L. Kipp shall have the unlimited and unrestricted testamentary general power to appoint all or any portion of the principal and undistributed income remaining in her trust at her death among one or more persons or entities and the creditors of Patricia L. Kipp's estate. Patricia L. Kipp shall have the sole and exclusive right to exercise this general power of appointment. Patricia L. Kipp may not exercise this power of appointment to appoint to herself, her estate, her creditors, or the creditors of her estate from the "limited share" of her trust. For purposes of this power of appointment, the "limited share" of Patricia L. Kipp's trust is that portion of her trust that has an inclusion ratio for generation-skipping transfer tax purposes of zero or which, in the absence of the exercise of the power of appointment, would not constitute a taxable generation-skipping transfer at her death. If the generation-skipping tax does not then apply, the limited share shall be Patricia L. Kipp's entire trust. Insofar as any :part of Patricia L. Kipp's trust shall not be effectively appointed, my Trustee shall distribute the remaining unappointed balance per stirpes in trusts to the descendants of Patricia L: Kipp. If Patricia L. Kipp has no living descendants, my Trustee shall distribute the balance of the trust property per stirpes in trusts to my descendants.- My Trustee shall administer any such trust under the same terms as Patricia L. Kipp's trust. Jean M. Korkuch Living Trust 9-5 If I have no living descendants, my Trustee shall distribute the balance of the trust property as provided in Article Ten. (cj Distribution if Patricia L. Kipp is Deceased If Patricia, L. Kipp should die before the establishment of her trust, my Trustee shall distribute Patricia L. Kipp's share per stirpes in trusts to the descendants of Patricia L. Kipp. My Trustee shall administer the trusts under. the same provisions as Patricia L. Kipp's trust. If Patricia L. Kipp has no descendants, my Trustee shall distribute Patricia L. Kipp's share pro rata to the other beneficiaries named in this Article. If there are no other named beneficiaries my Trustee shall distribute the remaining property under the terms of Article Ten. Jean M. Korkuch Living Trust 9-6 Article Ten Remote Contingent Distribution If, at any time, there is no person or entity qualified to receive final distribution of my trust estate or any part of it, then my Trustee shall distribute the portion of my trust estate with respect to which the failure of qualified recipients has occurred one-half to those persons who would inherit it had I then died intestate owning such property, and one-half to those persons who would inherit it had my husband then died intestate owning such property, all as determined and in the proportions provided by the laws of Pennsylvania then in effect. Jean M. Korkuch Living Trust 10-1 Article Eleven Administration of Trusts for Underage .and Incapacitated Beneficiaries Section 11.01 Distributions for Underage and Incapacitated Beneficiaries If under another provision of this agreement any part of the trust property is directed to be distributed outright, or if a distribution is required to be made, to a person when that person has not yet ,attained the age of 21 years, or at a time when that person is incapacitated and in the opinion of my Trustee is unable to manage the distribution properly, my Trustee may distribute or retain the trust property in any one or more of the following methods described in this Article. I request, but do not require, that before making a distribution to a beneficiary, my Trustee, to .the extent that it is both reasonable and possible, consider the ability the beneficiary demonstrated in managing prior distributions of trust property. Section 11.02 Methods of Distribution My Trustee may distribute or retain trust property in any one or more of the following methods for the benefit of any beneficiary subject to the provisions of this Article: (a) Distribution to Beneficiary My Trustee may distribute trust property directly to the beneficiary. (b) Distribution to Guardian or Conservator or Family Member My Trustee may distribute trust property to the beneficiary's guardian, conservator, parent or a family member or other person who has assumed the responsibility of caring for the beneficiary. (c) Distribution to Custodian My Trustee may distribute trust property to any person or entity, including my Trustee, as custodian for the beneficiary under the Uniform Transfers to Minors Act, or similar statute. (d) Distribution to Other Persons or Entities My Trustee may distribute trust property to other persons and entities for the use and benefit of the beneficiary. Jean M. Korkuch Living Trust 11-1 (e) Distribution to Agent under Durable Power of Attorney My Trustee may distribute trust property to an agent or attorney-in-fact authorized to act for the beneficiary under a legally valid durable power of attorney executed by the beneficiary prior to the incapacity. (~ Retention in Trust My Trustee may retain trust property in a separate trust for the benefit of the beneficiary until the beneficiary attains 21 years of age or, in the opinion of my Trustee, is no longer incapacitated (as the case may be). My Trustee shall distribute as much of the net income and- principal of any trust created under this subsection that my Trustee deems necessary or advisable for the health, education, maintenance or support of the beneficiary for whom the trust was created. My Trustee shall accumulate any undistributed net income and add such income to principal. When the beneficiary for whom a trust is created under this subsection attains 21 years of age or is no longer incapacitated (as the case may be), the beneficiary may withdraw from the trust at any time or times any portion or all of the accumulated trust income and principal. The beneficiary for whom a trust is created under this subsection shall have the testamentary general power to appoint all or any portion of the principal and undistributed income remaining in the beneficiary's trust at his or her death among one or more persons or entities, including the creditors of the beneficiary's estate. The beneficiary shall- have the sole and exclusive right to exercise this general power of appointment. I intend that this testamentary power of appointment be a general power of appointment as defined in Section 2041 of the Internal Revenue Code. If the beneficiary .fails to validly exercise this testamentary general power of appointment, my Trustee shall distribute the balance of his or her trust property to the then living descendants of the beneficiary, per stirpes. If the beneficiary has no then living descendants, my Trustee shall distribute the beneficiary's remaining trust property per stirpes to the living descendants of the beneficiary's nearest lineal ancestor who was my descendant or if no such descendant is then living, to my then living descendants, per stirpes. If I have no then living descendants, my Trustee shall distribute the remaining trust property as provided in Article Ten. Jean M. Korkuch Living Trust 11-2 Section 11.03 Application of Article Any decision made by my Trustee under this Article shall be final, controlling and binding upon all beneficiaries subject to the provisions of this Article. The provisions of this Article shall not apply to distributions to me or to my husband from any trust established under this agreement. Further,- the provisions of this Article shall not apply to distributions that are required to be made to a beneficiary pursuant to the provisions of Section 12.01. dean M. Korkuch Living Trust 11-3 Article .Twelve Retirement Plans and Life Insurance Policies The provisions of this Article apply to qualified retirement plans and insurance policies owned by or made payable to my trust. Section 12.01 Retirement Plans Notwithstanding any other provision of this agreement to the contrary, the provisions of this Section apply to qualified retirement plans. (a) Rights of My Trustee Subject to the provisions. below. pertaining to distributions from qualified retirement plans, my Trustee may exercise the right to determine the manner and timing of payments (by lump sum or otherwise) of qualified retirement plan benefits that are permitted under qualified retirement plans and are consistent with the federal income tax rules regarding required minimum distributions under Section 401(a)(9) of the Internal Revenue Code. My Trustee may make a qualified disclaimer of any qualified retirement benefits or non-qualified annuity benefits payable to my trust. My Trustee shall not be liable to any beneficiary for the death benefit election selected or for any decision regarding the disclaimer of any qualified retirement benefits payable to my trust. (b) Distributions from Qualified Retirement Plans to my Husband To the extent that all or part of any tax-favored retirement plan is allocated to my husband, my Trustee may (and shall, if requested to do so by my husband) cause the plan (or part thereof) to be paid directly from the plan to my husband as beneficiary, or shall (if so requested by my husband) cause the plan (or part thereof) to be transferred directly from the plan into another retirement plan in my husband's name, without the intervening step of transferring it to this trust. (c) Distributions from Qualified Retirement Plans to Trusts Unless specifically stated otherwise, each year, beginning with the year of my death, if any trust created under this agreement becomes the beneficiary of death benefits under any qualified retirement plan, my Trustee shall withdraw from the trust's share of the plan, in each year, the Jean M. Korkuch Living Trust 12-1 required minimum distribution required under Section 401(a)(9) of the Internal Revenue Code. My Trustee may withdraw such additional amounts from the trust's share of the plan as my Trustee deems advisable; but, only if the dispositive terms of the trust authorize my .Trustee to immediately distribute the withdrawn amount as provided below. My Trustee shall immediately distribute all amounts withdrawn to: My descendants, per stirpes, who are beneficiaries of such trust; and If no descendant of mine is a beneficiary of the trust, then to the income beneficiaries of such trust in equal shares. Amounts required ~ to be .withdrawn and distributed under this Section shall, to the extent they are- withdrawn and distributed, reduce mandatory distribution amounts under other provisions of this agreement that otherwise require distribution of all of the income of the trust. The purpose of this Section is to insure that the life expectancy of the beneficiaries of the trust may be used to calculate the minimum distributions required by the Internal Revenue Code. This Section shall be interpreted consistent with my intent despite any direction to the contrary in this agreement. (d) Minimum Required Distribution In administering my trust, the minimum required distribution for any year shall be, for each qualified retirement plan, the greater of (1) the value of the qualified retirement plan determined as of the preceding year-end, divided by the applicable distribution period; and (2) the amount that my Trustee, shall be required to withdraw under the laws then applicable to the trust to ,avoid penalty. If I die before my required beginning date with respect to a qualified retirement plan, the applicable distribution period means the life expectancy of the beneficiary. If I die on or after my required beginning date with respect to a qualified retirement plan, the applicable distribution period means the life expectancy of the beneficiary, or (if longer) my remaining life expectancy. Notwithstanding the foregoing, if I die on or after my required beginning date with respect to a qualified retirement plan, the minimum required distribution for the year of my death shall mean (a) the amount that was required to be distributed to me with respect to the qualified retirement plan during the year, minus (b) amounts actually distributed to me with respect to the qualified retirement plan during the year. Jean M. Korkuch Living Trust 12-2 "Life expectancy," "required beginning date" and other similar terms used in this subsection, shall be determined in accordance with Section 401(a)(9) of the Internal Revenue Code. Section 12.02 Life Insurance Policies The following provisions apply to life insurance policies owned by or made payable to my trust. (a) Provisions During My Life During my life, I reserve all of the rights, powers, privileges, and options, with respect to any insurance policy, annuity or any other third-party beneficiary contract owned by or made payable to my trust, including, but not limited to, the right to designate and change beneficiaries, the right to borrow money, the right to surrender the policy, the right to receive any payments as owner, and the right to make any available elections. My Trustee shall have no duty to exercise, or refrain from exercising, any rights, powers, privileges or options with respect to any insurance policy, annuity contract or other third-party benef ciary contract. My Trustee shall have no obligation to pay premiums or other contractual amounts that may be payable under any such policy. (b) Provisions After My Death After my death, my Trustee may make all appropriate elections with respect to such policies and may collect all sums made payable to my trust . or my Trustee under all such policies or contracts. My Trustee may exercise any settlement options or other options or rights that may be available under the terms of any policy or contract. My Trustee shall not be liable to any beneficiary on account of any election made by my Trustee with respect to any policy or contract. Section 12.03 Limitation on Liability of Payor Persons or entities dealing in good faith with my Trustee shall not be required to see to the proper application of proceeds delivered to my Trustee, or tb inquire into any provision of this agreement. A receipt signed by my Trustee for any proceeds or benefits paid shall be a sufficient discharge to the person or entity making the payment. Jean M. Korkuch Living Trust 12-3 Section 12.04 Collection Efforts My Trustee shall make reasonable efforts to collect the proceeds of all life insurance policies and qualified retirement benefits payable to my trust. My Trustee may commence legal or administrative proceedings to collect the proceeds of any life insurance policy or qualified retirement benefits to which the trust is entitled; provided, however, that my Trustee need not commence any such proceedings until my Trustee is indemnified to its satisfaction for any expenses and liabilities it may incur in .connection with the proceeding. My Trustee may settle or compromise any and all claims with respect to the collection of any life insurance proceeds or qualified retirement benefits to which my trust may be entitled. A settlement made by my Trustee shall be binding on all beneficiaries. Section 12.05 No Obligation to Purchase or Maintain Benefits Nothing in this agreement shall impose any obligation, legal or otherwise, on me or on my Trustee to purchase, invest, or maintain any qualified retirement plan or life insurance policy. Jean M. Korkuch Living Trust 12-4 Article Thirteen Trust Administration Section 13.01 Distributions to Beneficiaries Whenever this agreement authorizes or directs a Trustee to make a distribution of net income or principal to a~ beneficiary, the Trustee may apply for the benefit of the beneficiary any- property that otherwise could be distributed directly to the beneficiary. The Trustee shall have no responsibility to inquire into the beneficiary's ultimate disposition of the distributed property unless specifically directed otherwise by this agreement. The Trustee may make distributions in cash or in kind, or partly in each, in proportions and at values determined by the Trustee. The Trustee may allocate undivided interests in specific assets to a beneficiary or trust in any proportion or manner that the Trustee determines, even though the property allocated to one beneficiary may be different from that allocated to another beneficiary. The Trustee may make these determinations without regard to .the income tax attributes of the property and without the consent of any beneficiary. Section 13.02 Mandatory Payments of a Pecuniary Amount Notwithstanding any provision of this agreement to the contrary, if a person holds the current right to receive a mandatory (i.e., nondiscretionary and noncontingent) payment of a pecuniary amount at my death from my trust, the following shall apply: (A) My Trustee shall pay appropriate interest. (as defined in section 26.2642-2(b)(4)(i) and (ii) of the Treasury Regulations) to the person; and (B) If the pecuniary amount is payable in kind on the basis of value other than the date of distribution value of the assets, my Trustee shall allocate assets to the pecuniary payment in a manner that fairly reflects net appreciation or depreciation in the value of the assets in the fund available to pay the pecuniary amount measured from the valuation date to the date of payment. Section .13.03 No Court Proceedings This trust shall be administered expeditiously, consistent with the provisions of this agreement, free of judicial intervention, and without order, approval or action of any court. The trust shall be subject to the jurisdiction of a court only if my Trustee or another interested party institutes a legal proceeding. A proceeding to seek instructions or a court determination shall be initiated in the court having original jurisdiction over Jean M. Korkuch Living Trust 13-1 matters relating to the construction and administration of trusts. Seeking instructions or a court determination shall not subject this trust to the continuing jurisdiction of the court. Section 13..04 No Bond My Trustee shall not be required to furnish any bond for .the faithful performance of my Trustee's duties, unless required by a court of competent jurisdiction and only if the court finds that a bond is needed to protect the interests of the beneficiaries. No surety shall be required on any bond required by any law or rule of court, unless the court specifies that a surety is necessary. Section 13.05 Trustee Exoneration No successor Trustee is obligated to examine the accounts, records or actions of any previous Trustee or of the Personal Representative of my estate. No successor Trustee shall be in any way or manner responsible for any act or omission to act on. the part of any previous Trustee or the Personal Representative of my estate. Unless a Trustee has received notice of removal, the Trustee shall not be liable to me or to any beneficiary for the consequences of any action taken by the Trustee that would have been, but for the prior removal of the Trustee, a proper exercise by the Trustee of the authority granted to the Trustee under this agreement. Any Trustee -may request and obtain from the beneficiaries or from their legal representatives, agreements in writing releasing the Trustee from any liability that may have arisen from the Trustee's acts or omissions to act and indemnifying the Trustee from liability for the acts or omissions. An agreement described in this paragraph, if acquired from all the living beneficiaries of the trust or from their legal representatives, shall be conclusive and binding upon all parties, born or unborn, who may have, or may in the future acquire, an interest in the trust. The Trustee may require a refunding agreement before making any distribution or allocation of trust income or principal and may withhold distribution or allocation pending determination or release of a tax lien or other lien. This refunding agreement provision shall not apply to any distribution that qualifies for the federal estate tax unlimited marital deduction or the federal estate tax charitable deduction. Section 13.06 Trustee Compensation An individual serving as Trustee, other than my husband or me, shall be entitled to fair and reasonable .compensation for the services rendered as a fiduciary. A corporate fiduciary serving as .Trustee shall be compensated by agreement with an individual Trustee or, in the .absence of an individual Trustee or in the absence of an agreement, in accordance with the corporate fiduciary's published schedule of fees in effect at the time the services are rendered. Jean M. Korkuch Living Trust 13-2 A Trustee may charge additional fees for services it provides that are not comprised within its duties as Trustee such as fees for legal services, tax return preparation and corporate finance or investment banking services. In addition to receiving compensation, a Trustee may be reimbursed for reasonable costs and expenses incurred in carrying out its duties under this agreement. Section 13.07 Employment of Professionals My Trustee may .appoint, employ and remove, at any time and from time to time, investment advisors, accountants, auditors, depositories, custodians, brokers, consultants, attorneys, expert advisers, agents, and employees to advise or assist the Trustee in the performance of its duties. My Trustee may act upon the recommendations of the persons or entities employed with or without independent investigation. My Trustee may reasonably compensate an individual or entity employed to assist or advise my Trustee regardless of whether the person or entity shall be a Trustee of a trust established under this agreement or a corporate affiliate of a Trustee and regardless of whether the entity shall be one in which a Trustee of a trust created under this agreement is a partner, member, stockholder, officer, director or corporate affiliate or has any other interest. - My Trustee may pay the usual compensation for services contracted for under this Section out of principal or income of the trust as my Trustee may deem advisable. My Trustee may pay compensation to an individual or entity employed to assist or advise my Trustee without diminution of or charging the same against the. compensation to which the Trustee is entitled under this agreement. Any Trustee who shall be a partner, stockholder, officer, director or corporate affiliate in any entity employed to assist or advise my Trustee shall nonetheless receive the Trustee's share of the compensation paid to the entity. Section 13.08 Exercise of Testamentary Power of Appointment A testamentary power of appointment granted under this agreement may be exercised by valid will or valid living revocable trust that specifically refers to .the power of appointment. The holder of a testamentary power of appointment may exercise the power to appoint property among. .the permissible appointees in equal or unequal proportions, and on such terms and conditions, ,whether outright or in trust, as the holder of the power designates. Except where this agreement specifically provides otherwise, the holder of a testamentary power of appointment may grant further powers of appointment to any person to whom principal may be appointed, including a presently exercisable limited or general power of appointment. My Trustee may conclusively presume that any power of appointment granted to any beneficiary of a trust created under this agreement has not been exercised by the Jean M. Korkuch Living Trust 13-3 beneficiary if my Trustee has no knowledge of the existence of a valid will or valid living revocable trust exercising the power within 3 months after the beneficiary's death. Section 13.09 Determination of Principal and Income The Pennsylvania Uniform Principal aid Income Act shall govern beneficiaries' rights among themselves in matters concerning principal and income. If the Pennsylvania Uniform Principal and Income Act contains no provision concerning a particular item, my Trustee shall determine in a fair, equitable and practical manner what shall be credited, charged, and apportioned between principal and income. Notwithstanding any provision of the Pennsylvania Uniform Principal and Income Act or Pennsylvania law to the contrary, my Trustee shall treat distributions from any qualified retirement accounts to any trust established under this agreement in any given year as income to the extent the distribution represents income generated or treated as generated by any qualified retirement account for that year. In addition, my Trustee shall treat annuity and other periodic payments to any trust established under this agreement in any given year as income to the extent the distribution represents income generated and treated as generated by the annuity or other periodic .payment for that year; if income information is not available, then my Trustee shall apportion the annuity and other periodic payments between principal and income in a fair, equitable and practical manner in accordance with the guidelines set forth in this Section. "Annuity and other periodic payments" refers to distributions made to my Trustee over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payor in exchange for future payments and includes payments made in money or property from the payor's general assets or from a separate fund created by the payor, including a private or commercial annuity, an individual retirement annuity, a pension, profit-sharing plan, stock-bonus plan, stock ownership plan or similar arrangement. 1. To the extent an annuity or other periodic payment is characterized as interest, dividend or other item of income or an annuity or other periodic payment is made in lieu of interest, dividend or other item of income; my Trustee shall allocate the payment to income. My Trustee shall allocate to principal the balance of the annuity or other periodic payment as well as any other payment received in the same accounting period that is not characterized as interest, dividend or other item of income. 2. To the extent annuity and other periodic payments are made and no part of the payments are characterized as interest, dividend or other item of income, my Trustee shall use the present value of the annuity and other periodic payments as finally determined for federal estate tax purposes and the Section 7520 rate of the Internal Revenue Code used to determine the value for federal estate tax purposes to prepare an annuitization table to allocate the payments between income and principal. Jean M. Korkuch Living Trust 13-4 3. In the event that the amount of annuity and other periodic payments change because of changes in the investment markets or other changes, my Trustee shall allocate the change in the amount of the payments between income and principal in a fair, equitable and practical manner. If, to obtain an estate tax marital deduction for a trust established under this agreement, my Trustee must allocate more of a payment to income than provided for by this section, my Trustee shall allocate to income the additional amount necessary to obtain the marital deduction. Section 13.10 Trust Accounting Except to the extent required by law, my Trustees shall not be required to file annual accounts with any court or court official in any jurisdiction. Upon the written request of a beneficiary, my Trustee shall render an accounting at least annually to the income beneficiaries of the trust, during the accounting period that includes the date of the written request. The accounting shall include the receipts, disbursements, and distributions occurring during the accounting period and a balance sheet of the trust property if no tax return is filed, or may consist just of the tax return for the accounting period if a tax return is filed for the trust. In the absence of fraud or manifest error, the assent by all income beneficiaries to an accounting of an Independent Trustee shall make the matters disclosed in the accounting binding and conclusive upon all persons, both those in existence on the date of this agreement and those to be born in the future who have, or will in the future have, a vested or contingent interest in the trust property. In the case of a minor or incapacitated beneficiary, that beneficiary's natural guardian or legal representative shall give the assent required under this Section. The failure of any person to object to any accounting by giving written notice to my Trustee within 60 days, of the person's receipt of a copy of the accounting shall be deemed to be an assent by such person. The trust's financial records and documentation shall be available at reasonable times and upon reasonable notice for inspection by trust beneficiaries and their representatives. My Trustee shall not be required to furnish trust information regarding my trust to any individual, corporation, or other entity that is not a beneficiary or the representative of a beneficiary, and is not requesting the information pursuant to a valid court order. Section 13.11 Action of Trustees;`~Disclaimer Unless otherwise provided in this agreement, whenever I am serving as Trustee, I may _ make all decisions and exercise all powers and discretions granted to my Trustee under this agreement without the consent of any other Trustee. Jean M. Korkuch Living Trust 13-5 When I am not serving as a Trustee, if two Trustees are eligible to act with respect to a given matter, the concurrence of both shall be required for action to be taken; if more than two Trustees are eligible to act with respect to a given matter, the .concurrence of a majority of my Trustees shall be required for action to be taken. A nonconcurring Trustee may dissent or abstain from a decision of the majority. A Trustee shall be absolved from personal liability by registering its dissent or abstention in the records of the trust. After doing so, the dissenting Trustee shall then act with my other Trustees in any way necessary or appropriate to effectuate the decision of the majority. Notwithstanding any provision of this agreement to the contrary, any Trustee may disclaim or release, in whole or in part, by an instrument in writing; any power it holds as Trustee, irrevocably or for any period of time that the Trustee may specify. The Trustee may make the relinquishment of a power personal to the Trustee ~ or may relinquish the power for all subsequent Trustees. Section 13.12 .Delegation of Trustee Authority; Power of Attorney Subject to the limitations set forth in Section 14.22, any Trustee may, by an instrument in writing, delegate to any other Trustee the right to exercise any power (including a discretionary power) granted my Trustee in this agreement. During the time a delegation under this Section is in effect, the Trustee to whom the delegation was made may exercise the power to the same extent as if the delegating Trustee had personally joined in the exercise of the power. The delegating Trustee may revoke the delegation at any time by giving written notice of revocation to the Trustee to whom the power was delegated. My Trustee may execute .and deliver a revocable or irrevocable power of attorney granting any individual or entity the power to transact any and all business on behalf of my trust or any other trust created under this agreement. The power of attorney may grant to the attorney-in-fact all of the rights, powers, and discretion that my Trustee is entitled to exercise under this agreement. Section 13.13 Additions to Separate Trusts If upon my death, or upon the termination of any trust created under this agreement, a final distribution is to be made to a person who is or is named as the primary beneficiary of another trust created or provided for under this agreement, and there is no specific indication whether the distribution is to be made in trust or outright, free of trust, my Trustee .shall make the distribution to the second trust instead of distributing the property to the beneficiary outright. For purposes of administration, my Trustee shall treat the distribution as though it had been an original part of the second trust. Jean M. Korkuch Living Trust 13-6 Section 13.14 Authority to Merge or Sever Truss My Trustee may merge and consolidate a trust created under this agreement with any other trust, if the two trusts contain substantially the same terms for the same beneficiaries and at least one Trustee in common. My Trustee may administer the merged and consolidated trust as a single trust or unit. If, however., a merger or consolidation does not appear feasible, my Trustee may consolidate the assets of the trusts for purposes of investment and trust administration while retaining separate records and accounts for each respective trust. My Trustee may sever any trust on a fractional basis into two or more separate and identical trusts or may segregate a specific amount or asset from the trust property by allocation to a separate account or trust. The separate trusts may be funded on a non pro rata basis provided that funding is based on the total fair market value of the assets on the date of funding. Income earned on a segregated amount or specific asset after the segregation .passes with the amount or asset segregated.. My Trustee shall hold and administer each separate trust upon terms and conditions substantially identical to those of the trust from which it was severed. Subject to the terms of the trust, my Trustee may consider differences in federal tax attributes and other pertinent factors in administering the trust property of any separate account or trust, in making applicable tax elections, and in making distributions. A separate trust created by severance must be treated as a separate trust for all purposes from the date on which the severance is effective; however, the effective date of severance may be retroactive to a date before-the date on which my Trustee exercises the power. Section 13.15 Authority to Terminate Trusts If, at any time, my Trustee, other than an Interested Trustee, in its sole and absolute discretion, determines that a trust created under this agreement is no longer economical or is otherwise inadvisable to administer as a trust, or if my Trustee, other than an Interested Trustee, deems it to be in the best interest of my beneficiaries, my Trustee, without further responsibility, may terminate the trust and distribute the trust property, including any undistributed net income, in the following order of priority: To me, if I am then living;. If I am not then living, to my husband, if then a beneficiary of the trust; If I am not then living and my husband is not then a benef ciary of the trust, to the beneficiaries then entitled to mandatory distributions of net income of the trust and in the same proportions; and If none of the beneficiaries are entitled to mandatory distributions of net income, to the beneficiaries then eligible to receive discretionary Jean M. Korkuch Living Trust 13-7 distributions of net income of the trust, in such amounts and shares as my Trustee, other than an Interested Trustee, may determine. Section 13.16 Merger of Corporate Fiduciary If any corporate fiduciary acting as my Trustee under this agreement is merged with or transfers substantially all of its trust assets to another corporation or if a corporate fiduciary changes its name, the successor shall automatically succeed to the trusteeship as if originally named a Trustee. No document of acceptance of trusteeship shall be required. Section 13.17 .Beneficiary's Status Until a Trustee receives notice of the incapacity, birth, marriage, death or other event upon which •a beneficiary's right to receive payments may depend, the Trustee shall not be liable for acting or failing to act with respect to the event or for. disbursements made in good faith to persons whose interest may have been affected by such event. Unless otherwise provided in this agreement, the parent or legal representative may act on behalf of a beneficiary who is a minor or is incapacitated. A Trustee may rely on any information provided by a beneficiary with respect to the beneficiary's assets and income. A Trustee shall have no independent duty to investigate the status of any beneficiary and shall not incur any liability for failure to do so. Section 13.18 Discharge of Third Persons Persons dealing in good faith with my Trustee shall not be required to see to the proper application of money paid or property delivered to my Trustee, or to inquire into the authority of my Trustee as to any transaction. The receipt from my Trustee for any money or property paid, transferred or delivered to my Trustee shall be a sufficient discharge to the person or persons paying, transferring or delivering the money or property from all liability in connection with its application. Section 13.19 Certificate by Trustee A written statement. of my Trustee may always be relied upon by, and shall always be conclusive evidence in favor of, any transfer agent or any other person dealing in good faith with my Trustee in reliance upon the statement. Section 13.20 Funeral and Other Expenses of Beneficiary Upon the death of an income beneficiary, my Trustee may pay from trust property the funeral expenses, burial or cremation expenses, enforceable debts and other expenses incurred due to the death of the beneficiary. This Section shall only apply to the extent Jean M. Korkuch Living Trust 13-8 the income beneficiary has not exercised any testamentary power of appointment granted to him or her under this agreement. My Trustee may rely upon any request by the Personal Representative or members of the family of the deceased beneficiary for payment without, verifying the validity or the amounts and without being required to see to the application of the amounts so paid. My Trustee may make decisions under this Section without regard to any limitation on payment. of expenses imposed by statute or rule of court and may be made without obtaining the approval of any court having jurisdiction over the administration of the deceased beneficiary's estate. Section 13.21 Marital Deduction Qualification I intend that the marital gift as described in Article Seven of this agreement qualify for the federal estate tax marital deduction, and the provisions of this agreement shall be construed to reflect this intent. To the extent that giving effect to a provision of this agreement would result in the marital gift not qualifying for the federal estate tax unlimited marital deduction, that provision shall be ineffective. Jean M. Korkuch Living Trust 13-9 Article Fourteen My Trustee's Powers Section 14.01 Introduction to Trustee's Powers Except as otherwise specifically provided in this agreement, my Trustee may exercise, without prior approval from any court, all the powers .conferred by this agreement and any powers conferred by law, including, without limitation, those powers set forth under the common law or statutory law of the Commonwealth of Pennsylvania or any other jurisdiction whose law applies to this trust. The powers set forth in the Pennsylvania Fiduciary Powers Act are specifically incorporated into this trust agreement. The powers conferred upon my Trustee by law, including those powers conferred by the Pennsylvania Fiduciary Powers Act, shall be subject to any express limitations or contrary directions contained in this agreement. My Trustee shall exercise these powers in the manner my Trustee determines to be in the best interests of the beneficiaries. My Trustee shall not exercise any of its powers in a manner that is inconsistent with the right of the beneficiaries to the beneficial enjoyment of the trust property in accordance with the general principles of the law of trusts. The Trustee of a trust may have duties and responsibilities in addition to those described in this agreement. I encourage my Trustee to obtain appropriate legal advice if my Trustee has any questions concerning its duties and responsibilities as Trustee. Section 14.02 Execution of Documents by My Trustee My Trustee may execute and deliver any and all instruments in writing that my Trustee considers necessary to carry out any of the powers granted in-this agreement. Section 14.03 Investment Powers in General My Trustee may invest. in any type of investment that my Trustee determines is consistent with the investment goals of my trust, whether inside or outside the geographic borders of . the United States of America and its possessions or territories, taking into account my trust's overall investment portfolio. Without limiting my Trustee's investment authority in any way, I request that my Trustee exercise reasonable care and skill in selecting and retaining trust investments. I also request that my Trustee take into account the following factors in choosing investments for my trust: The potential return from the investment, both in the form of income and appreciation; Jean M. Korkuch Living Trust 14-1 The potential income tax consequences of the investment; The investment's potential for volatility; and The role the investment will play in the trust's portfolio. I request that my Trustee, in arranging the investment portfolio of the trust, also consider the possible effects of inflation or deflation, changes in global and U.S. economic conditions, transaction expenses, and the trust's need for liquidity. My Trustee may delegate its discretion to manage trust investments to any registered investment adviser or corporate fiduciary. Section 14.04 Banking Powers My Trustee may establish bank accounts of any type in one or more banking institutions that my Trustee may choose. My Trustee may open accounts in the name of my Trustee (with or without disclosing fiduciary capacity) or in the name of the trust. When an account is in the name of the trust, checks on that account and authorized signatures need not disclose the fiduciary nature of the account or refer to any trust or Trustee. An account from which my Trustee makes frequent disbursements need not be an interest bearing account. My Trustee may authorize withdrawals from an account by check, draft or other instrument or in any other manner. Section 14.05 Business Powers My Trustee is authorized to serve as an officer, director, manager, or in any other capacity of any proprietorship, partnership, joint venture, corporation, or other enterprise in which the trust has an interest (whether or not such interest is total or controlling).. My Trustee may receive compensation for services. My Trustee may contract with and otherwise deal with any such enterprise in the same manner as it would with- any enterprise in which the trust has no interest, and may use any voting power my Trustee may have to implement its authority (whether as Trustee or as an officer, director, or other official of the enterprise). With respect to any units in a limited liability company, limited partnership, or stock in a closely-held corporation ("closely-held company") that are contributed to the trust, the powers granted to my Trustee in this Article shall not disqualify my Trustee from acting personally and independently, and not in a fiduciary capacity, with respect to any closely held company, from holding office in the closely-held company, from accepting remuneration from the closely-held company, from voting any units or stock in favor of the Trustee as a director or officer of the closely-held company, or from purchasing or selling units or stock of the closely-held company. Jean M. Korkuch Living Trust 14-2 If a trust is funded with subchapter S stock, my Trustee may either elect to qualify the trust as a qualified subchapter S trust ("QSST") under Section 1361(d)(3) of the Internal Revenue .Code or as an electing small business trust under Section 1361(e)(1) to administer the trust in accordance with the requirements of the corresponding Section. Section 14.06 Contract Powers My Trustee may sell at public or private sale, transfer, exchange for other property, and otherwise dispose of trust property for consideration and upon terms and conditions that my Trustee deems advisable. My Trustee may grant options of any duration for any such sales, exchanges, or transfers of trust property. My Trustee may enter into contracts, and may deliver deeds or other instruments, that my Trustee deems appropriate. Section 14.07 Common Investments For purposes of convenience with regard to the administration and investment of the trust property, my Trustee may invest part or all of the trust property jointly with trust property of other trusts for which my Trustee is also serving as a Trustee. For this purpose, a corporate fiduciary acting as my Trustee may use common funds for investment. When trust property is managed and invested in this manner, my Trustee shall maintain records that sufficiently identify that portion of the jointly invested assets that constitute the trust property of this trust. Section 14.08 Environmental Powers My Trustee. shall have the right to inspect trust property to determine compliance with or to respond to any environmental law affecting the trust property. "Environmental law" shall mean any federal, state, or local law, rule, regulation, or ordinance relating to protection of the environment or of human health. My Trustee may refuse to accept property if my Trustee determines that the property is or may be contaminated by any hazardous substance or is or was used for any purpose involving .hazardous substances that could create liability to the trust or to my Trustee. My Trustee may use and expend. trust property to (i) conduct environmental assessments, audits or site monitoring; (ii) take remedial action to contain, clean up or remove .any hazardous substance including a spill, discharge or contamination; (iii) institute, contest or settle legal proceedings brought by a private litigant or any local, state, or federal agency concerned with environmental compliance; (iv) comply with any order issued by any court or by any local, state, or federal agency directing an assessment, abatement or clean-up of any hazardous substance; and (v) employ agents, consultants and legal counsel to assist my Trustee in these actions. Jean M. Korkuch Living Trust 14-3 My Trustee shall not be liable for any loss or reduction in value sustained by my trust as a result of my Trustee's retention of property on which hazardous materials or substances requiring remedial action axe discovered unless my Trustee contributed to the resulting loss or reduction in value through willful misconduct or gross negligence. My Trustee shall not be liable to any beneficiary or to any other party for any decrease in the value of trust property as a result of my Trustee's compliance with any environmental law, including any reporting requirement. My Trustee may release, relinquish or disclaim any power held by my Trustee that my Trustee determines may cause my Trustee to incur individual liability under any environmental law. Section 14.09 Farm, Ranch and Other Agricultural Powers My Trustee may retain, acquire, and sell any farm or ranching operation, whether as a sole proprietorship, partnership, or corporation. My Trustee may engage in the production, harvesting, and marketing of farm and ranch products either by operating directly or with management agencies, hired labor, tenants, or sharecroppers. My Trustee may engage and participate in any government farm program, whether .state or federally sponsored. My Trustee may purchase or rent machinery, equipment, livestock, poultry, feed, and seed. My Trustee may improve and repair all farm and ranch properties; .construct buildings, fences, and drainage facilities, and acquire, retain, improve, and dispose of wells, water rights, ditch rights, and priorities of any nature. My Trustee may do all things customary or desirable to operate a farm or ranch operation for the benefit of the beneficiaries. Section 14.10 Insurance Powers My Trustee may purchase, accept, hold, and deal with as owner, policies of insurance on my life, the life of any beneficiary, or on the life of any person in whom any beneficiary has an insurable interest. My Trustee may purchase disability, medical, liability, long-term health care and other insurance on behalf of and for the benefit of any beneficiary. My Trustee may purchase annuities and similar investments for any beneficiary. My Trustee shall have the power to execute or cancel any automatic premium loan agreement with respect to any policy, and shall have, the power to elect or cancel any Jean M. Korkuch Living Trust 14-4 automatic premium loan provision in a life insurance policy. My Trustee may borrow money to pay premiums due on any policy, either by borrowing from the company issuing the policy or from another source. My Trustee may assign the policy as security for the loan. My Trustee shall have the power to exercise any option contained in a policy with regard to any dividend or share of surplus apportioned to the policy, ~to reduce the amount of a policy or convert or exchange the policy, or to surrender_ a policy at any time for its cash value. My Trustee may elect any paid-up insurance or extended term insurance nonforfeiture option contained in a policy. My Trustee shall have the power to sell any policy at its fair market value to anyone having an insurable interest in the policies including the insured. My Trustee shall have the right to exercise any other right, option, or benefit contained in a policy or permitted by the insurance company issuing the policy. Upon termination of the trust, my Trustee shall have the power to transfer and assign the policies held by the trust as a distribution of trust property. Section 14.11 Loans and Borrowing Powers My Trustee may make secured or unsecured loans to any person (including a beneficiary), entity, trust or estate, for any term or payable on demand, with or without interest. My Trustee may enter into or modify the terms of any mortgage or security agreement granted in connection with any loan and may release or foreclose on the mortgage or security. My Trustee may borrow money at interest rates and on other terms that it deems advisable from any person, institution or other source including, in the case of a corporate fiduciary, its own banking or commercial lending department. My Trustee may encumber trust property by mortgages, pledges and other hypothecation and shall have the power to enter into any mortgage, whether as a mortgagee or mortgagor even though the term may extend beyond the termination of the trust and beyond the period that is required for an interest created under this agreement to vest in order to be valid under the rule against perpetuities. My Trustee may purchase, sell at public or private sale, trade, renew, modify, and extend mortgages. My Trustee may accept deeds in lieu of foreclosure. Jean M. Korkuch Living Trust 14-5 Section 14.12 Nominee Powers . My Trustee may hold real estate, securities and any other trust property in the name of a nominee or in any other form without disclosing the existence of any trust or fiduciary capacity. Section 14.13 Oil, Gas and Mineral Interests My Trustee may acquire, maintain, develop and exploit, either alone or jointly with others, any oil, gas, coal, minerals or other natural resource rights or interests. My Trustee may drill, test, explore, mine, develop, extract, remove, convert, manage, retain, store, sell and exchange any of such rights and interests on terms and for a price that my Trustee deems advisable. My Trustee may execute leases, pooling and unitization agreements and other types of agreements in connection with such oil, gas, coal, mineral and other natural resource rights and interests even though such arrangements may extend beyond the termination of the trust. My Trustee may execute division orders, transfer orders, releases, assignments, farm outs, and any other instruments that it deems proper. My Trustee may employ the services of consultants and outside specialists in connection with the evaluation, management, acquisition, disposition, .and development of any mineral interest, and may pay the cost of the services from the principal and income of the trust property. Section 14.14 Payment of .Taxes and Expenses Except as otherwise provided in this agreement, my Trustee is authorized to -pay all property taxes, assessments, fees, charges, and other expenses incurred in the administration or protection of the trust. All payments shall be a charge against the trust property and shall be paid by my Trustee out. of the income, or to the extent that the income is insufficient, then out of the principal of the trust property. The determination of my Trustee with respect to the payment of expenses shall be conclusive upon. the beneficiaries. Section 14.15 Qualified Family.Owned Business Interests Deduction My Trustee, other than an Interested Trustee, shall have the power to amend the terms of a trust holding "qualified family-owned business interests" as defined in Section 2057 of the Internal Revenue Code, in order to permit trust property to qualify for the "family owned business deduction," even if the amendment changes beneficial interests and that directs the segregation of trust property into more. than one trust. Jean M. Korkuch Living Trust 14-6 Section 14.16 Qualified Real Property Valuation My Trustee, other than an Interested Trustee, shall have the power to amend the terms of a trust holding "qualified real property" as defined in Section 2032A of the Internal Revenue Code, in order to permit the qualified real property to qualify or continue to qualify for special use valuation permitted under Section 2032A, even if the amendment changes beneficial interests and that directs the segregation of trust property into more than one trust. Section 14.17 Real Estate Powers My Trustee may sell at public or private sale, convey, purchase, exchange, lease for any period, mortgage, manage, alter, improve and in general deal in and with real property in such manner and on such terms and conditions as my Trustee deems appropriate. 1VIy Trustee may grant or release easements in or over, subdivide, partition, develop, raze improvements, and abandon, any real property. My Trustee may manage real estate in any manner that my Trustee deems best and shall have all other real estate powers necessary for this purpose. My Trustee may enter into contracts to sell real estate. My Trustee may enter into leases and grant options to lease trust property even though the term of the agreement extends beyond the termination of the trust and beyond the period that is required for an interest created under this agreement to vest in order to be valid under the rule against perpetuities. For such purposes, my Trustee may enter into any contracts, covenants and warranty agreements that my Trustee deems appropriate. Section 14.18 Residences and Tangible Personal Property My Trustee may acquire, maintain and invest in any residence for the use and benefit of the beneficiaries, whether or not the residence is income producing and without regard to the proportion that the value of the residence may bear to the total value of the trust property and even if retaining the residence involves financial risks that trustees would not ordinarily incur. My Trustee may pay or make arrangements for others to .pay all carrying costs of the residence, including, but not limited to, taxes, assessments, insurance, expenses of maintaining the residence in suitable repair; and other expenses relating to the operation of the residence for the benefit of the beneficiaries. My Trustee may acquire, maintain and invest in articles of tangible personal property, whether or not the property is income producing, and may pay the expenses of the repair and maintenance of the property. My Trustee shall have no duty to convert the property referred to in this Section to productive property except as required by other provisions of this agreement. Jean M. Korkuch Living Trust 14-7 My Trustee may permit any income beneficiary of the trust to occupy any real property or use any personal property owned by the trust on terms or arrangements that my Trustee may determine, including .rent free or in consideration for the payment of taxes, insurance, maintenance, repairs, or other charges. My Trustee shall have no liability for any depreciation or loss as a result of the retention of any property retained or acquired under the authority of this Section. Section 14.19 Retention and Abandonment of Trust Property My Trustee may retain, without liability for depreciation or loss resulting from retention, any property constituting the trust at the time of its creation, at the time of my death or as the result of the exercise of a stock option. My Trustee may retain property, notwithstanding the fact that the property may not be of the character prescribed by law for the investment of assets held. by a fiduciary, and notwithstanding the fact that retention may result in inadequate diversification under any applicable Prudent Investor Act or other applicable law. My Trustee may hold property that is non-income producing or is otherwise nonproductive if holding the property is, in the sole and absolute discretion of my Trustee, in the best interests of the beneficiaries. On the other hand, except when I am serving as a Trustee, my Trustee shall invest contributions of cash and cash equivalents as soon as reasonably practical after the assets have been acquired by the trust. My Trustee is permitted to retain a reasonable amount in cash or money market accounts in order to pay anticipated expenses and other costs and to provide for anticipated distributions to or for the benefit of a beneficiary. My Trustee may abandon any trust property that my Trustee deems to be of insignificant value. Section 14.20 Securities, Brokerage and Margin Powers My Trustee may buy, sell, trade and otherwise deal in stocks, bonds, investment companies, mutual funds, common trust funds, commodities, options and other securities of any kind and in any amount, including short sales. My Trustee may write and purchase call or put options, and other derivative securities. My Trustee may maintain margin accounts with brokerage firms and may pledge securities to secure loans and advances made to my Trustee or to or for the benefit of a beneficiary. My Trustee may place all or any part of the securities held by the trust in the custody of a bank or trust company. My Trustee may have all securities registered in the name of the bank or trust company or in the name of its nominee. My Trustee may appoint the bank or trust company as the agent or attorney in fact to collect, receive, receipt for and disburse any income and generally to perform the duties and services incident to a custodian of accounts. Jean M. Korkuch Living Trust 14-8 My Trustee may .employ abroker-dealer, as a custodian for securities held by the trust and may register. the securities in the name of the broker-dealer or in the name of a nominee with or without the addition of words indicating that the securities are held in a fiduciary capacity. My Trustee may hold securities in bearer or uncertificated form and may use a central depository, clearing agency or book-entry system, such as The Depository Trust Company, Euroclear or the Federal Reserve Bank of New York. My Trustee may participate in any reorganization, recapitalization, merger or similar transaction. My Trustee may exercise or sell conversion or subscription rights for securities of all kinds and description. My Trustee may give proxies or powers of attorney that may be discretionary and with or without powers of substitution. My Trustee may vote or refrain from voting as to any matter. Section 14.21 Settlement Powers My Trustee may settle, by compromise, adjustment, arbitration or otherwise any and all claims and demands in favor of or against the trust. My Trustee may release or abandon any claim in favor of the trust. Section 14.22 Limitation on My Trustee's Powers All powers granted to my Trustee under this agreement or by applicable law shall be limited as set forth in this Section, unless explicitly excepted by reference to this Section. The limitations set forth in this Section shall not apply to me. (a) An Interested Trustee Limited to Ascertainable Standards An Interested Trustee may not exercise or participate in the exercise of discretion with respect to the distribution of income or principal, or the termination of the trust to or for the benefit of a beneficiary, to the extent that the exercise of such discretion is other than for the health, education, maintenance or support of a beneficiary as described under Sections .2041 and 2514 of the Internal Revenue Code. (b) No Distributions in Discharge of Certain Legal Obligations My Trustee may not exercise or participate in the exercise of discretion with respect to the distribution of income or principal that would in any manner discharge a legal obligation of my Trustee, including the obligation of support. If a beneficiary or any other person has the power to remove a Trustee, that Trustee may not exercise or participate in the exercise of discretion Jean M. Korkuch Living Trust 14-9 with respect to the distribution of income or principal, that would in any manner discharge a legal obligation of the person having the power to remove the Trustee, including that person's obligation of support. (c) Insurance Policy on the Life of My Trustee If the trust holds a policy that insures the life of my Trustee, my Trustee shall have no right to exercise any powers or rights with respect to the policy. A Cotrustee serving under this agreement shall exercise the powers and rights with respect to the policy. If the insured Trustee is the only Trustee; then an Independent Special Trustee designated under Section 3.08 shall exercise the powers and rights with respect to the policy. If any rule of law or court decision construes the ability of the insured Trustee to name an .Independent Special Trustee as an incident of ownership of the policy, then a maj ority of the then current mandatory and discretionary income beneficiaries (excluding the insured Trustee if he or she is a beneficiary) shall select the Independent Special Trustee. (d) Insurance Policy on a Beneficiary's Life If the trust holds a policy that insures the life of a .beneficiary, the beneficiary (acting individually or as Trustee) shall have no power over the policy, the cash value of the policy, or the proceeds of the policy. The intent of this denial of power is to prevent an insured beneficiary from having a power that would constitute an incident of ownership of the policy. In addition, no distribution of income or principal to the insured beneficiary shall be satisfied out of the proceeds of the policy, the cash value of the policy or any other economic benefit of the policy. The limitations of this subsection. shall not apply if the proceeds of the policy would, upon the death of the beneficiary, otherwise be included in .the gross estate of the beneficiary for federal estate tax purposes. Jean M. Korkuch Living Trust 14-10 Article Fifteen General Provisions Section 15.01 Maximum Term for Trusts Notwithstanding any other provision of this agreement, unless terminated earlier under other provisions of this agreement, each trust created under. this agreement shall terminate upon the expiration of the longest period that property may be held in trust under this agreement without violation of the applicable rule against perpetuities. If the applicable rule against perpetuities. for trusts is determined by reference to the death of the last to die among a group of individuals living on the date of my death, those individuals shall consist of the descendants of my paternal and maternal grandparents and the descendants of my husband's paternal and maternal grandparents. At that time, the remaining trust property shall vest in and be distributed to the persons entitled to receive mandatory distributions of net income of the trust and in the same proportions. If none of the beneficiaries is entitled to mandatory distributions of net income, the remaining trust property shall vest in acid be distributed to the beneficiaries entitled to receive discretionary distributions of net income of the trust, in equal shares per stirpes. Section 15.02 Spendthrift Provision Neither the income nor the principal of the trust property may be assigned, anticipated or alienated in~ any manner by any beneficiary, nor shall it be subject to attachment, bankruptcy proceedings or any other legal process, or to the interference or control of creditors or others. Nothing contained in this Section shall restrict in any way the exercise of any power of appointment granted in this agreement. Section 15.03 Contest Provision If, after receiving a copy of this Section, any person shall, in any manner, directly or indirectly, attempt to contest or oppose the validity of this agreement, (including any amendment to this agreement), or commences, continues or prosecutes any legal proceedings to set this agreement aside, then such person shall forfeit his or her share, cease to have any right or interest in the trust property, and shall, for purposes of this agreement be deemed to have predeceased me. This Section may not be applied so as .to cause a forfeiture of any distribution otherwise qualifying for the federal estate tax marital deduction or charitable deduction. Jean M. Korkuch Living Trust 15-1 Section 15.04 Survivorship Presumption If my husband and I die under circumstances in which the order of our deaths cannot be established, my husband will be deemed to have survived me. If any other beneficiary is living at my death, but dies within 30 days after my death, then the beneficiary will be deemed to have predeceased me for purposes of this agreement. Section 15.05 Divorce or Annulment If my marriage to my husband ends by divorce or annulment, my husband shall cease to be a beneficiary under this agreement and shall be treated for purposes of this agreement as though he predeceased me. If my husband is serving as my Trustee at the time that my marriage to my husband ends, he shall cease to be a Trustee. Section 15.06 Changing the Situs of Administration My Trustee may, at any time, remove all or any part of the property or the situs of administration of the trust from one jurisdiction to another. My Trustee may elect, by filing an instrument with the trust records, that the trust shall thereafter be •construed, regulated and governed as to administration by the laws of the new jurisdiction. My Trustee may take action under this Section for any purpose my Trustee deems appropriate, including the minimization of any taxes in respect of the trust or any beneficiary of such trust. If necessary, the beneficiaries entitled to receive distributions of net income under the trust may, by majority consent, appoint a corporate fiduciary in the new situs. If a beneficiary is a minor or is incapacitated, the parent or legal representative of the beneficiary may act on behalf of the beneficiary. Section 15.07 Definitions For purposes of this agreement, the following terms have the following meanings: (a) Adopted and Afterborn Persons A legally adopted person in any generation and his or her descendants, including adopted descendants, has the same rights and shall be treated in the same manner under this agreement as natural children of the adopting parent, provided such person is legally adopted prior to attaining the age of 18 years.. A person is deemed to be legally adopted if the adoption was legal in the jurisdiction in which it occurred at the time that it occurred. A fetus in utero that is later born alive shall be considered a person in being during the period of gestation. Jean M. Korkuch Living Trust 15-2 (b) Agreement The term "this agreement" means this trust agreement and includes all - trusts created under the terms of this agreement. (c) Descendants The term "descendants" shall include a person's lineal descendants of all generations. (d) Education The term "education" is intended to be an ascertainable standard in accordance with Section 2041 and Section 2514 of the Internal Revenue Code and shall include, but not be limited to: Enrollment at private elementary, junior and senior high school including boarding school; Undergraduate and graduate study in any field at a college or university; Specialized, vocational or professional training or instruction at any institution, including private instruction; and Any other curriculum or activity that my Trustee may deem useful for developing the abilities and interests of a beneficiary including, without limitation, athletic training, musical instruction, theatrical training, the arts and travel. The term "education" shall also include distributions made by my Trustee for expenses such as tuition, room and board, fees, books and supplies, tutoring and transportation and a reasonable allowance for living expenses. (e) Incapacity - - ~~ Except as otherwise provided in this agreement, a person is deemed I' incapacitated in any one of the following circumstances. (1) The Opinion of Two Licensed Physicians An individual shall be deemed incapacitated whenever, in the written opinion of two licensed physicians, the individual is unable to effectively manage his or her .property or financial affairs, whether as a result of age, illness, use of prescription medications, drugs or other ~ substances, or any other cause. Jean M. Korkuch Living Trust 15-3 An individual. shall ~ be deemed restored to capacity whenever the individual's personal or attending physician provides a written opinion that the individual is able to effectively manage his or her property and financial affairs. (2) Court Determination An individual is deemed incapacitated if a court of competent jurisdiction has declared the .individual to be disabled, incompetent or legally incapacitated. (3) Detention, Disappearance or Absence An individual is deemed incapacitated whenever he or she cannot effectively manage his or her property or financial affairs. due to the individual's unexplained disappearance or absence for more than 30 days, or whenever he or she is detained under duress. An ,individual's disappearance or absence or detention under duress may be established by an affidavit of my Trustee, or, if no Trustee is serving, by the affidavit of any beneficiary. The affidavit shall describe the circumstances of the individual's disappearance, absence or •detention and may be relied upon by any third party dealing in good faith with my Trustee in reliance upon the affidavit. (~ Income Beneficiary The term "income beneficiary" means any beneficiary who is then entitled to receive distributions of the net income of the trust, whether mandatory or discretionary. Unless otherwise provided in this agreement, the phrase "majority of the income beneficiaries" means any combination of income beneficiaries who, if all accrued net income were distributed on the day of a vote by the beneficiaries, would receive more than 50% of the accrued net income. For purposes of this calculation, beneficiaries who are eligible to receive discretionary distributions of net income are deemed to receive the income in equal shares. References to a "majority" refer to a majority of the entire trust collectively- until my Trustee allocates property to separate trusts or trust shares. After the allocation of property to separate trusts or trust shares, references to a "majority" refer to a maj ority of each separate trust or trust share. Jean M. Korkuch Living Trust 15-4 (g) Income in Respect of a Decedent (IRD) The term "income in respect of a decedent" or "IRD" means ~ income received after a decedent's death that would have been taxable to the decedent if the income had been received by the decedent during the decedent's lifetime. For example, payments under qualified retirement plans and other deferred compensation arrangements are IRD. For purposes of this agreement, IRD means any income that would be classified as IRD under Section 691(a) of the Internal Revenue Code. (h) Independent Trustee The term "Independent Trustee" means a Trustee who is not an Interested Trustee as defined in subsection (i) and includes an Independent Special Trustee appointed under the provisions of Section 3.08. Whenever (1) a power is granted exclusively to an Independent Trustee or (2) the phrase "other than an Interested Trustee" is used, then the power or discretion may be exercised only by an Independent Trustee. Whenever this agreement specifically prohibits an Interested Trustee from exercising discretion or performing an act, then only an Independent Trustee may exercise that discretion or perform that act. (i) Interested Trustee The term "Interested Trustee" means (1) a Trustee who is a transferor of property to the trust; (2) a Trustee who is a beneficiary of the trust; (3) a Trustee who is related or subordinate within the meaning of Section 672(c) of the Internal Revenue Code to a transferor of property to the trust or a beneficiary of the trust; or (4) ~ Trustee whom a transferor of property to the trust or a beneficiary of the trust can remove and replace by appointing a Trustee that is related or subordinate to the beneficiary within the meaning of Section 672(c) of the Internal- Revenue Code. For purposes of this subsection "a transferor of property to the trust" includes a person whose qualified disclaimer resulted in property passing to the trust. For purposes of this subsection "a beneficiary of the trust" means a person who is or in the future may be eligible to receive income or principal from the trust pursuant to the terms of the trust. A person shall be considered a beneficiary of a trust even if he or she has only a remote contingent remainder interest in the trust; however, a person shall not be considered a beneficiary of a trust if the person's only interest is as a potential appointee under a testamentary power of appointment. Jean M. Korkuch Living Trust 15-5 (j) Internal Revenue Code and Treasury Regulations References to the "Internal Revenue Code" or to its provisions are to the Internal Revenue Code of 1986, as amended from time to time, and the corresponding Treasury Regulations, if any. References to the "Treasury Regulations," are to the Treasury Regulations under the Internal Revenue Code in effect from time to time. If a particular provision of the Internal Revenue Code is renumbered, or the Internal Revenue Code is superseded by a subsequent federal tax law, any reference is deemed to be made to the renumbered provision or to the corresponding provision of the subsequent law, unless to do so would clearly be.contrary to my intent as expressed in this agreement. The same rule shall apply to references to the Treasury Regulations. (k) Legal Representative or Personal Representative As used in this agreement, the term "legal representative" or "Personal Representative" means a person's guardian, conservator, .executor, administrator, Trustee, or any other person or entity personally representing a person or the person's estate. (I) Per Stirpes Whenever a distribution is to be made to a person's descendants "per stirpes," the distribution shall be divided into as many shares as there are then living children of the person and deceased children of the person who left then living descendants. Each then living child shall receive one share and the share of each deceased child shall be divided among the child's then living descendants in the same manner. (m) Primary Beneficiary The primary beneficiary of a trust created under this agreement is the oldest income beneficiary of that trust unless some other individual is specifically designated as the primary beneficiary of that separate trust. (n) Qualified Retirement Plan The term "qualified retirement plan" means a plan qualified under Section 401 of the Internal Revenue Code, an individual retirement arrangement under Section 408 or Section 408A or atax-sheltered annuity under Section 403. The term "qualified retirement benefits" means the amounts held in or distributed pursuant to a plan qualified under Section 401, an individual retirement arrangement under Section 408 or Section 408A, a tax-sheltered annuity under Section 403 or any other benefit subject to the distribution rules of Section 401(a)(9). Jean M. Korkuch Living Trust 15-6 (o) Shall and May Unless otherwise specifically provided in this agreement or by the context in which used, I use the word "shall" in this agreement to command, direct or require, and the word "may" to allow or permit, but not require. In the context of my Trustee, when I use the word "may" I intend that my Trustee may act. in its sole and absolute discretion unless otherwise stated in this agreement. (p) Trust The terms "this trust" or "this trust agreement" shall refer to this agreement and all trusts created under the terms of this agreement. (q) Trustee The term "my Trustee" or "Trustee" refers to the Trustee named in Article One and to any successor, substitute, replacement or additional person, corporation or other entity that is from time to time acting as the Trustee of any trust created under the terms of this agreement. The term "Trustee" refers to singular. or plural as the context may require. (r) Trustmaker The term "Trustmaker" has the same legal meaning as "Grantor," "Settlor," "Trustor" or any other term referring to the maker of a trust. (s) Trust Property The phrase "trust property" shall be construed to mean all property held by my Trustee under this agreement, including all property that my Trustee may acquire from any source. Section 15.08 General Provisions and Rules of Construction The following general provisions and rules of construction shall apply to this agreement: (a) Duplicate Originals This agreement may be executed in any number of counterparts, each of which is deemed to be an original. Any person may rely upon a copy of this agreement certified under oath by my Trustee to be a true copy, to the same effect as if it were an original. (b) Singular and Plural; Gender Unless the context requires otherwise, words denoting the singular may be construed as plural and words of the plural may be construed as denoting Jean M. Korkuch Living Trust 15-7 the singular. Words of one gender may be construed as denoting another gender as is appropriate within the context. The word "or" when used in a list of more than two items may function as both a conjunction and a disjunction as the context requires or permits. (c) Headings of Articles, Sections, and Subsections The headings of Articles, Sections, and subsections used within this agreement are included solely for the convenience and reference of the reader. They have no significance in the interpretation or construction of this agreement. (d) Governing State Law This agreement is governed, construed and administered according to the laws of the Commonwealth of Pennsylvania as from time to time amended, except as to trust property required by .law to be governed by the laws of another jurisdiction .and unless the Situs of Administration is changed as provided in Section 15.06. (e) Notices Unless otherwise stated, whenever this agreement calls for notice, the notice must be in writing and must be personally delivered with proof of delivery, or mailed postage prepaid by certified mail, return receipt requested, to the last known address of the party requiring notice. Notice is effective on the date personally delivered or on the date of the return receipt. If a party giving notice does not receive the return receipt but has proof that he or she mailed the notice, notice is effective on the date it would normally have been received via certified mail. If notice is required to be given to a minor or incapacitated individual, notice must be given to the parent or legal representative of the minor or incapacitated individual. (f) Plans Not. Reciprocal The fact that my husband and I are executing our estate plans concurrently shall not be construed to create any contractual or reciprocal .obligations between us. (g) Severability The invalidity or unenforceability of any provision of this agreement shall not affect the validity or enforceability of any other provision of this agreement. If a court of competent jurisdiction determines that any provision is invalid, the remaining provisions of this agreement are to be interpreted and construed as if the invalid provision had never been included in this agreement. Jean M. Korkuch Living Trust 15-8 I have executed this agreement on the day- and year first above written. This agreement shall be effective when signed by me, whether or not now signed by a Trustee. I certify to the officer taking my acknowledgment that I have read this trust agreement, that I understand it, and that it correctly states the provisions under which my trust property is to be administered and distributed by my Trustee. Je . Korkuch, T stmaker :-- Fr cis J. Korkuch, stee COMMONWEALTH OF PENNSYLVANIA ) ss. COUNTY OF CUMBERLAND ) On this day, November 6, 2007, before me personally appeared Jean M. Korkuch, as Trustmaker, personally known to me (or proved to me on the basis of satisfactory evidence) to be the individual whose name is subscribed to the foregoing instrument, and acknowledged that she executed the same as her voluntary act and deed for the purposes therein contained. Witness my hand and official seal. [Seal] COMMONWEALTH OF PENNSYLVANIA NOTAttIAL SEAL Aaron C. Jackson, Notary Public Upper Allan Toat~ship, C~t~laad ~Y . My commission lros 07 2011 Jean M. Korkuch Living Trust 15-9 ivty commission expires: COMMONWEALTH OF PENNSYLVANIA ) ) ss. COUNTY OF CUMBERLAND ) On this day, November 6, 2007, before me personally appeared Francis J. Korkuch, as Trustee, personally known to me (or proved to me on the basis of satisfactory evidence) to be the individual whose name is subscribed. to the foregoing instrument, and acknowledged that she executed the same as her voluntary act and deed for the purposes therein contained. Witness my hand and official seal. [Seal] otary M~mmission expires: COMMONWEALTH OF PENNSYLVANIA NOTARIAL SEAL Aaron C. Jackson, Notary Public Upper Allen Township, Cumberland My commission ex fires May 07, 201t1 Jean M. Korkuch Living Trust 15-10 Schedule A Ten Dollars cash Jean M. Korkuch Living Trust A- 1 EXHIBIT D STOCK PURCHASE AGREEMENT THIS STOCK PURCHASE AGREEMENT (this "Agreement") is made and entered into as of this oo day of June, .2010 by and among THE JEAN M. KORKUCH LIVING TRUST ("the Trust"), HENRY A. ZUMBRUN, II ("Henry"), and MOREHOUSE INSTRUMENT COMPANY, INC. (the "Corporation"). WITNESSETH: WHEREAS the total outstanding capital stock of the Corporation consists of 1,470 shares of common stock of which 357 shares were owned by Jean prior to her death and now owned by the Trust (the "Jean Shares") and no shares are currently owned by Henry; and WHEREAS, Francis J. Korkuch, Jr. was named as Successor Trustee and on April 25, 2010, Francis J. Korkuch, ;J r. appointed Nancy J. Korkuch as Co-trustee and Representative of the Trust in accordance with Section 3.05 of that Trust in order to simplify its administration; and WHEREAS, the Trust, Henry, and the Corporation desire to enter into this Agreement to, among other things, (i) sell and purchase the Jean Shares, (ii) make certain tax elections and (iii) provide for certain rights and obligations of the parties as described in this Agreement. NOW, THEREFORE, in consideration of the terms and conditions of this Agreement and the mutual covenants contained herein, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows: 1. Purchase/Sale of Shares. Henry hereby agrees to purchase and the Trust hereby agrees to sell, assign and transfer to Henry the Jean Shares for a total purchase price of $525,000.00. The purchase price of $525,000.00 shall be paid in two payments, the first of $21,000.00 payable at this time, the purpose of which is to enable the Trust to make prompt payment of Inheritance Tax, and the balance of $504,000.00 at the date and time of closing of this transaction, which is set for June 23, 1:00 pm. At that time, and as a condition to the payment of the purchase price, the representative of the Trust shall deliver to the Corporation the original of Stock Certificates for the Jean Shares, together with a duly executed Stock Power in substantially the form of Exhibit A attached hereto and incorporated herein by reference. The Trust represents and warrants that it has good title to the Jean Shares, free and clear of any security interests, pledges, liens, encumbrances, charges, agreements, claims or other arrangements or restrictions of any nature or kind. 2. Tax Election. In connection with the purchase by Henry of the Jean Shares, the parties hereto will elect to have a closing of the books and a termination of the year for tax purposes as of the date of this Agreement. In furtherance thereof: (i) the Corporation will execute and deliver the Election to Terminate Year Upon Termination of Interests of S Corporation Shareholder attached hereto as Exhibit B and incorporated herein by reference (the Tax Election"); and (ii) the representative of the Trust and Henry will execute and deliver the Consent of Affected Shareholders to Election to Terminate Year Upon Termination of Interest by S Corporation Shareholder in the form of Exhibit C attached hereto and incorporated herein by reference. The Corporation will attach and file the Tax Electior with its Form 1120S for FYE December 31, 2010. 3. Bank Debt. There is no bank debt. 4. Signature Authority. Upon execution of this Agreement, the representative of the Trust shall have no authority to enter into any contracts binding upon the Corporation or to create any obligation on the part of the Corporation. Henry and the Corporation shall arrange for all signature authority of Jean on bank accounts of the Corporation to be removed. B US_EST:257689-1 022146-122293 5. Mutual Release. Except for the obligations of the Trust, Henry, and/or the Corporation set forth in this Agreement, including, without limitation, the indemnification obligations of the parties set forth herein, each of the Trust, Henry, and the Corporation hereby releases and forever discharges each other from any and all claims, demands, liabilities, obligations, actions, causes of actions, costs or expenses which such party has or may have, in law or in equity, based upon any action, omission or event that occurred before, on or after the date of this Agreement arising from or related to the Corporation, including any employment, shareholder, officer, director or other relationship whatsoever with or related to the Corporation. 6. Income and Distributions. The Corporation hereby warrants the accuracy of the stated amount of income, with respect to the shares being sold, that has accrued on the books of the corporation for tax purposes from the beginning of the current year until the date of this agreement, as well as the total amount of distributions paid out from the beginning of the current year through the date of the agreement with respect to the shares being sold. Such amount statement is attached to this agreement as Exhibit D. 7. .Characterization. For all purposes, including without limitation, tax and financial statement reporting purposes, the parties hereto agree to report, account for and in all other respects characterize the actual_transaction described in this Agreement in a manner consistent with the intended transaction described in this Agreement. J 8. Acknowledgment. Each party to this Agreement acknowledges and agrees that: (i) he, she or it has carefully.. read and fully understands the provisions of this Agreement including the release of claims; (ii) this Agreement may compromise or extinguish some legal rights of such party and doing so may have important legal, economic and tax consequences; (iii) each party has had the opportunity to, and has, discussed this Agreement with counsel of h.is, her or its choice prior to signing it; and (iv) such party is satisfied with the Agreement and has decided to enter into the Agreement exercising free will, that the decision to do so was completely such party's, and that no party has been forced to enter into this Agreement. 9. Miscellaneous. This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns. This Agreement constitutes the entire agreement of the parties relating to the matters set forth herein, and supersedes any and all prior written or oral agreements or understandings with respect to the subject matter hereof. The terms and conditions of this Agreement may only b2 waived or modified by a written document executed by the parties hereto. This Agreement will be governed by in accordance with the laws of the Commonwealth of Pennsylvania. If any provision of this Agreement shall for any reason be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision hereof, but this Agreement shall be construed as if such invalid o.r unenforceable provision had never been contained herein. Each of the parties hereto agrees, upon the request of any other party hereto, from time to time to execute and deliver to such other party all such instruments and documents of further assurance or otherwise as shall be reasonable under the circumstances, and to do any and all such acts and things as may reasonably be required to carry out the obligations of such requested party hereunder and to consummate the transactions provided for herein. -2- PLEASE READ CAREFULLY, THIS AGREEMENT INCLUDES A RELEASE IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. THE JEAN M. KORKUCH LIVING TRUST By: - ~~~ N N Y ALL Representative NRY A. ZUMBRUN, II MOREHOUSE INSTRUMENT COMPANY, INC. By: HA Y UMBRUN' President -3- EXHIBIT A STOCK POWER BUS EST:257689-1 022146-122293 STOCK POWER FOR VALUE RECEIVED, THE JEAN M. KORKUCH LIVING TRUST hereby sells, assigns and transfers unto MOREHOUSE INSTRUMENT COMPANY, INC., a Pennsylvania corporation (the "Corporation"), 357 Shares of the voting common stock of the Corporation standing in the name of JEAN M. KORKUCH on the books of the Corporation, and does hereby irrevocably constitute and appoint the Secretary of the Corporation as its attorney to transfer the said stock on the books of the Corporation, with full power of substitution in the premises. Dated: ~,e~ ~3 ~o /d THE JEAN M. KORKUCH LIVING TRUST By:~ ~~ ~,c~Q~ NA CY ALL Representative In the Presence of: MOREHOUSE INSTRUMENT COMPANY, INC. OONSENT OF AFFECTED SHAREHOLDERS TO ELECTION TO TERMINATE YEAR UPON TERMINATION OF INTEREST BY S CORPORATION SHAREHOLDER The undersigned being all of the affected shareholders of MOREHOUSE INSTRUMENT COMPANY, INC. (the "Corporation") during. the taxable year ending December 31, 2010, hereby consent to the election by the Corporation under Section 1377(x)(2) of the Internal Revenue Code of 1986, as amended (the "Code) and Regulations Section 1.1377-1 (b) to make a terminating election for the taxable year ended December 31, 2010 and to have the rules under Code Section 1377(x)(.1), prorating S corporation items, apply as if the taxable year consisted of two separate taxable years. This election is made with respect to the termination of interest of JEAN M. KORKUCH. The manner of the termination was the sale of her entire interest in the Corporation. Under penalties of perjury, the undersigned declare that the facts presented in this statement and in the accompanying statement of the Corporation are, to the best of our knowledge and belief, true, correct and complete. Date: ~ <~ THE JEAN M. KORKUCH LIVING TRUST NAN Y J. , R .presentative ~,, HE Y A. ZUMBRUN, I HA ZUMBRUN ~C~~ $ARA E. PAUL MOREHOUSE INSTRUMENT COMPANY, INC. EIN: 23-0890670 Attachment to Form 1120S for FYE December 31, 2010 ELECTION TO TERMINATE YEAR UPON. TERMINATION OF INTEREST BY S CORPORATION SHAREHOLDER MOREHOUSE INSTRUMENT COMPANY, INC. (the "Corporation"), with the consent of the Corporation and all affected shareholders during the taxable year ending December 31, 2010, elects under Section 1377(a)(2) of the Internal Revenue Code of 1986, as amended (the "Code) and Regulations Section 1..1377-1 (b) to make a terminating election for the taxable year ended December 31, 2010 and to have the rules under Code Section 1377(a)(1),~ prorating S corporation items, apply as if the taxable year consisted of two separate taxable years. This election is made with respect to the termination of interest of SEAN M. KORKUCH. The manner of the termination was the sale of her entire interest in the Corporation. Under penalties of perjury, the undersigned declares that the facts presented in this statement are, to the best of my knowledge and belief, true, correct and complete. Date: oz3 ~vio MOREHOUSE INSTRUMENT COMPANY, INC. HA .ZUMBRUN Presi nt .. . EXHIBIT D STATEMENT OF INCOME AND DISTRIBUTIONS DISTRIBUTION: APRIL 22, 2010 DIVIDEND PAID TO JEAN M. KORKUCH $6,247.50 INCOME STATEMENT DATED JUNE 23, 2010 ATTACHED BUS EST:2576$9-1 022146-122293 EXHIBIT E APPRAISAL OF REAL PROPERTY PREPARED BY GARDEN STATE VALUATION & CONSULTING SERVICES, LLC (609) 391-8862 (Phone) (609) 399-1916 (FAX) ~. r ~ ~ ~ r ~ ~ ~,k ti ~; a , .~ ,. a ~5r.~~ e i ~31..~,~.; ~ A ~'~ v7F}wri ~i t ~ ' ka ~~ f ]", !. Y ~ ~ ~~~ ~' 3 , ~! ~ {{ . ~~~' LOCATED AT 5324 Central Ave Block: 5302, Lot: 17 Ocean City, NJ 08226 FOR Aaron C. Jackson, Esquire 111 North Front Street Harrisburg, Pa. 17108 OPINION OF VALUE $865,000 AS QF _ 3/18/10 BY Joseph V. Heenan, SRA, CTA Garden State Valuation 8 Consulting Services, LLC Post Office Box 1405 Ocean City, NJ 08226 609-391-8862 j heena n613@com cast.net Form GA1V_LTR - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE Garden State Valuation 8 Consulting Services, LLC Post Office Box 1405 Ocean City, NJ 08226 609-391-8862 December 16, 2010 Aaron C. Jackson, Esquire 111 North Front Street Harrisburg, Pa. 17108 Re: Property: 5324 Central Ave Ocean City, NJ 08226-1244 Owner: Jean Korkuch Living Trust File No.: Opinion of Value: $ $865,000 Effective Date: 3/18/10 Dear Mr. Jackson: In accordance with your request, I have appraised the above referenced property. The report of that appraisal is attached. The purpose of the appraisal is to develop an opinion of market value for the property described in this appraisal report, as improved, in unencumbered fee simple. title of ownership. This report is based on a physical analysis of the site and improvements, a locational analysis of the neighborhood and city, and an economic analysis of the market for properties such as the subject. The appraisal was developed and the report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice. The opinion of value reported above is as of the stated effective date and is contingent upon the certification and limiting conditions attached. It is the opinion of the appraiser that the subject property known as 5324 Central Avenue (AKA: Block: 5302, Lot: 17), in Ocean City, Cape May County, New Jersey, has a market value, as of March 18, 2010, of EIGHT HUNDRED AND SIXTY-FIVE THOUSAND DOLLARS ($865,000). It has been a pleasure to assist you. Please do not hesitate to contact me if I can be of additional service to you. Sincerely, Joseph V. Heenan, SRA, CTA License or Certfication #: 42RG00012200 State: NJ Expires: 12/31/11 _ j heenan613@com cast.net Owner Jean Korkuch Livin Trust File No. Pro a Address 5324 Central Ave C' Ocean Ci Coun Ca a Ma State NJ Zi Code 08226-1244 Client Aaron C. Jackson, Es uire APPRAISAL AND REPORT- IDENTIFICATION This Appraisal Report is ~ of the following types: ^ Self Contained (A written report prepared under Standards Rule_ 2-2(a) ,persuant to the Scope of Work, as disclosed elsewhere in this report.) ® Summary (A written report prepared under Standards Rule 2-2(b) , persuant to the Scope of Work, as disclosed elsewhere in this report.) ^ Res#ricted Use (A written report prepared under Standards Rule 2-2(c) , persuant to the Scope of Work, as disclosed elsewhere in this report, restricted to the stated intended use by the specified client or intended user.) Comments on Standards Rule 2-3 I certify that, to the best of my knowledge and belief: -The statements of fact contained in this report are true and correct -The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. - I have no (or the specirfied) present or prospective interest in the property that is the subject of this report and no (or the specified) personal interest with respect to the parties involved. - I have no bias with respect to the property that is the subject of this report or the parties involved with this assignment. - My engagement in this assignment was not contingent upon developing or reporting predetermined results. - My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. - My analyses, opinions, and conclusions were developed, and this report has been prepared, inconformity with the Uniform Standards of Professional Appraisal Practice that were in effect at the time this report was prepared. -Unless otherwise indicated, I have made a personal inspection of the property that is the subject of this report. -Unless otherwise indicated, no one provided significant real property appraisal assistance to the person(s) signing this certification Crf there are exceptions, the name of each individual providing significant real property appraisal assistance is stated elsewhere in this report). -Unless otherwise indicated, I have performed no services regarding the subject property within the prior three years, as an appraiser or in any other capacity. Comments on Appraisal and Report Identification Note any USPAP related issues requiring disclosure and any State mandated requirements: APPRAISER: Co-Appraiser: Signature: "' Signature: Name: Joseph .Heenan, SRA, GTA Name: Designation: Designation: Date Signed: December 16, 2010 Date Signed: State Certification #: State Certification #: or State License #: 42RG00012200 or State License #: State: NJ State: Expiration Date of Certification or License: 12/31/11 Expiration Date of Certification or License: Inspection of Subject: Inspection of Subject: ^ None ®Interior ®Exterior ^ None ^ Interior ^ Exterior Date of Inspection 12/10/10 Date of Inspection Form ID10_LT - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE Garden State Valuation & Cansultinn Servires. Ll C Par new .. :, ' .: ~ FIRREA /. USPAP;ADD~NDUM Owner Jean Korkuch Livin Trust File No. Pro a Address 5324 Central Ave Ci Ocean Ci Coun Ca a Ma State NJ Ta Code 08226-1244 Client Aaron C. Jackson Es uire Pu.. ose ~ ~ - _ The ur ose of thew raisal into estimate market value of the real estate as of the retros ective valuation date of March 18 2010. ,'Sco e: of Work ~. The a raiser has h ical ins ected the sub'ect roe -from the exterior and interior on December 10 2010. The.a raiser hoto ra hed the interior and exterior of the sub'ect roe and buildin im rovements. The a raiser has also investi ated the area real estate market to obtain listin sand im roved sales in Ocean Ci from 2008-2010. The a raiser has been re nested to rovide a market value a raisal for the sub'ect ro ert ~ as of March 18, 2010. ..Intended Use/ Ir>ItendedUser , , .~.~.~ . _ _ Intended Use: The intended use .of this re ort is for asset determination for u oses of transferri the roe between famil members. Intended ser s : The intended users are Aaron Jackson Es uire & the Law Firm of Tucker Arensber . _.. .. ~ ~ ~ =. , Histo ~ ~ -, - :. of Pro e _ ;. _: . .Current listin information: The sub'ect roe is not current/ listed for sale nor has been listed for sale within the last three ears or more. Prior sale: The last known deed conve ance of the sub'ect roe was on November 20 2007 for $1.00 as recorded in Deed Book 3319 Pa e 359 in the Ca a Ma Coun Clerk's Office. See co of attached deed. -~ ~ r osure Time /:Marke~n °:Time :. An a osure time of one to twelve months is estimated. A marketin time of one to twelve months is estimated for market value based on ical marketin times. t . „ .,... .:~ ~, ~. ~ - .. -. ~~ . _. .a _~_ ~ _ s . . Personal non=rea .:-Transfers No ersonal roe was included in the a raiser's estimate of market value. 'Additional Comments A _. ~ __ Certification Su lament - - 1. This appraisal assignment was not based on a requested minimum valuation, a spec'rfic valuation, or an approval of a loan. 2. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainrhent of a stipulated result or the occurrence of a subsequent event. u- Appraiser: Joseph V. Heenan, SRA, CTA Supervisory Appraiser. Signed Date: December_16, 2010 Signed Date: Certification or License #: 42RG00012200 Certification or License #: Cert'rficabon or License State: NJ Expires: 12/31/11 Certification or License State: Expires: Effective Date of Appraisal: 3/18/10 Inspection of Subject: ^ Did Not ^ Exterior Only ^ Interior and Exterior roan ruH L I - "Wm I U I AL" appraisal somvare oy a la mode, inc. -1-800-ALAMODE Garden State Valuation & Consulting Services, LLC. ~ ~~~n n~~Qetce~ ~~ ~MMORY REPORT i:~ieNe: I!'451'r~ ~ w Pro a Address: 5324 Central Ave C~ :Ocean Ci State: NJ Zi Code: 08226-1244 } ' Coun Ca a Ma Le al Descri lion: Block: 5302 Lot: 17 ,` S~ Tax Year: 2010 R.E. Taxes: $ 8 395.55 S ecial Assessments: $ Assessor's Parcel #: 05-08-05302-00017 ~ ~ Market Area Name: South End Ma Reference: 36140 Census Tract: 0202.00 ' Current Owner of Record: Jean Korkuch Livin Trust Borrower if a livable : Jean Korkuch Livin Trust ^ er ear ^ er month A : $ Pro'ect T e if a livable : PUD ^ De Minimis PUD ^ Other describe HO Are there any e~dsting improvements to the property? ^ No ®Yes ff Yes, indicate current occupancy: ®Owner ^ Tenant ^Vacant ^ Not habitable tf Yes, give a brief description: The e~asting improvements are an under improvement and should be razed. The temporary utility of the buildin offsets it's antici ated demolition costs. ~3 ~,~ .~ ~~ The ur ose of this a raisal is to develo an o inion of: Market Value as defined , or other a of value describe ~` This re art reflects the followin value if not Current, see comments : ®Current the Ins ection Date is the Effective Date ^ Retros ective Pros ective ~ 4 Pro a Ri hts raised: Fee Sim le ^ Leasehold ^ Leased Fee ^ Other describe ~ ` Intended Use: The intended use of this report is for asset determination for estate purposes. W . ? ' Z C~ N ; . Intended User(s) (by name or type): The intended users are the Law Firm of Tucker Arensberg, PC and Aaron Jackson, Esquire.. ~ a . ~' ,' Client: Aaron C. Jackson Es wire Address: 111 North Front Street Harrisbur , Pa. 17108 A raiser. Jose h b. Heenan, SFtA, CTA Address: Post Office Box 1405, Ocean C' , NJ 08226 Characteristics Predominant One-Unit Housing Present Land Use Change in Land Use Location: ^ Urban ®Suburban ^ Rural Occupancy PRICE AGE One-Unit 20 % ®Not Likel y : ®Over 75% ^ 25-75% ^ Under 25% Built u ®Owner $(000) (yrs) 2-4 Unit 75 % ^ Likely * ^ In Process p Growth rate: ^ Rapid ®Stable ^ Slow ^ Tenant 300 Low 0 Multi-Unit 2 % * To: erty values: ^ increasing ^ Stable ®Declining Pro ®Vacant (0-5%) 5 000 Hi h 90 Comm'I 3 % ~ ' p : ^ Shortage ^ In Balance ®Over Supply l mand/su D ^Vacant (>5%) 1 000 Pred 40 % .fi x, :; ~; y pp e Marketing time: ^ Under 3 Mos. ^ 3-6 Mos. Over 6 Mos. % ~ '~ f u, Factors Affecting hliarketability `t ltem. Good Average Fair Poor N/A li~lil Good Average Fair Poor N/A of Utilities ^ ® ^ ^ ^ uac ^ ^ ^ Ade q y Employment Stability ^ ® Convenience to Employment ^ ® ^ ^ ^ Property Compatibility ® ® ^ ^ ^ Convenience to Shopping ^ ® ^ ^ ^ Protection from Detrimental Conditions ^ ® ^ ^ ^ Convenience to Schools ^ ® ^ ^ ^ Police and Fre Protection ® ® ^ ^ ^ ` ~ Adequacy of Public Transportation ^ ® ^ ^ ^ General Appearance of Properties ® ^ ^ ^ ^ Recreational Facilities ® ^ ^ ^ ^ A eal to Market ® ^ ^ ^ ^ E Market Area Comments: The subject property's market area is the south end area of Ocean City that can be delineated as the area from Thirty-Fourth Street to Fifty-Ninth Streef from West Avenue to the beach in Ocean City. The subiect neighborhood can be specfically ; delineated as the area from Central Avenue to the beach in Ocean C' This s ecfic area contains a hi h ro ortron of du lex condomrnwms. ~ -; ~a, There are some single family homes, fee simple duplexes, multi-family properties and some limited commercial uses. Minimal new ~~ construction is taking place presently in the neighborhood The subject is situated across the street from the beach in_a desirable area of ~~ Ocean City Ocean City is a resort town where the population increases during the summer. __ ~: a - , . ,a ,. L ~~ ~ Copyright® 2007 by a la mode, inc. This form may be reproduced unmodified wfihout wrat~ permission, however, a is mode, inc. must be aclmowledged and credited ' ' ~ LAND Form GPLND LT -- "NIinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE 3/2001 ISAL SUMMARY REPORT ~le~o.: LAND AP P RA Site Area: 4,000 S .Ft. Dimensions: 40' x 100 Description: Permits one and two famil dwellin s on a 40' x 100' Zoning Classification: Residential R-2-40 ~ Yes No No Improvements lot interior po present improvements comply with existing zoning requirements . ® ^ ^ ~r ,~t Uses albwed urxier current zoning: Permits one and two famil dwellin s. documents been reviewed? ^ Yes ^ No Ground Rent ('rf applicable} $ _= - ' Are CC&Rs applicable? ^ Yes (~ No ^ Unknown .Have the Comments: Other~use (explain) Im roved with two new residential units and the units converted to .:` Highest & Best Use as improved: ^ Present use, or ® • • _ __~ ,_..a ,,.,'a~r,~p fr,r development. condominiums. Use as appraised in this report: Actua! Use as of Effective Date:. Sin le Famil Residential. Summary of Highest & Best Use: The sub' ect's existin use is an interim use until the site can be devel~ Public Other ProviderlDescription Off-site Improvements Type Public Private ® ^ Frontage Topography Utilities Electric'~r ® ^ AC ElectriclTypical Street Macadam 70' W ide Size Gas ® ® ^ S. Jerse R ical ^ American Water Width Macadam Surface ® ^ Shape Drainage Water Sanitary Sewer ® ^ American Water CurblGutter Concrete t ^ ® View Storm Sewer ~ ^ MunicipaUT'ypical _ e Sidewalk Concre Street Lights Pole ® ^ Telephone ® ^ VerizoniTypical Alle Public 15' Wide ® ^ Multimedia ^ Comcast/T ical Corner Lot Cul de Sac Under roan FEM ~ 3453 100004D Ma # a Other site elements: Inside Lot A No FEMA Flood Zone A7 ie: a utilities. s FEMA S ec'I Flood Hazard Area Yes l 40' x 100' tot that is serviced b ~ See co f • The sub'ect site is a ica review Site Comments. _ . _.__~ ..~;~~+., o~cc~mPnts are known to east. No surve was rovide FEMA Map Date 7/15/1 of attached tax and flood COMPARABLE N0.2 COMPARABLE N0.3 COMPARABLE N0.1 4608 Central Avenue 3644 Central Avenue 3804 Central Avenue Ocean Ci NJ 08226 Address 5324 Centra{ Ave Ocean Ci NJ 08226 1244 Ocean C' NJ 08226 Ocean Ci NJ 08226 1 63 miles NE 0 78 miles NE t : ;t $ 950 OC '- to Sub ect Pro~am' ~ ~~ .. ~~ ' - , ` 1.77 mites NE _ _ ., ., - .. ~ -:~ <, . $ 999 999 :, ::. °: ~ < ~ '~ ~ . $ 950,000 ~ - - ~ . ~;_,~ _ ~ $~ ~ . 237.50 Y., ,; Sale Price .. .. N/A $ 200.00 ~_ ~ `~ ~ •= N/A $ S .. , $ 237.50 MLS # 322057/Assessor Price! S .Ft. Data Source(s) $ Inspection MLS # 33771 yAssessor t MLS # 315245/Assessor MLS # 315245Nital ov.net MLS # 322057Nitai ov.ne +(-) $ Adjus Verification Source(s) Ins ection MLS # 337712/Vita ov.ne +(-) $ Adjust DESCRIPTION DESCRIPTION +(-) $ Adjust DESCRIPTION Known Con. VALUE ADJUSTMENT DESCRIPTION No Known Con. No Known Con. No 10/15!08-Settled Sales or Rnancing N/A 8/31/09-Settled y21/08-Settled -g3 60 ° 0 9/30/08-UC -6.3% -59 8 Concessions l0 4/6/09-UC -4.2% -42 000 2/13!08-UC -8.8 Fee Sim le pate of Sale/Time 3 18/10 _ _. ._ ceo ~imnle Fes Sim to r_„rui_Intarior Site Area Net mLAND 5 -50 LAND APPRAISAL SUMMARY REPORT ~,_.,_. ummary o ales Comparison Approac A negative market conditions adjustment of -.035% per month was required from the date of contract for the comparable to the valuation date. * Indicates adjustment for corner made under view Deed indicates $935 000 for Comparable # 3 but actual consideration was $950,000. My research ^ did ®did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal. Data Sources : vital ov.net 1st Prior Subject Sale/Transfer Analysis of sa~/transfer history and/or any current agreement of sale~listing: There is n r t l li ti f th ~ Date: 11/30/07 _ o ecen sa e or s ng o e subject property. ' Price: $1.00 Sources :Deed Book 33190/P 359 ~i 2nd Prior Subject Sale/Transfer Date: Price: Sources PROJECT INFORMATION- FOR PUDs if a licable T e Subject is art of a Planned Unit Devela meat. Le al Name of Pro'ect: N/A `° ~.~ Describe common elements and recreational facilities: N/A Indicated Value b :Sales Com arison roach ~ 865 000 or $ 216.25 er S .Ft. Final Reconciliation The appraiser estimates a market value of $865,000 for the subject property based on an analysis of the three sales above and other data analyzed but not included in this report. This appraisal is made ®"as is", or ^ subject to the following conditions:. 'O ^ This re ort is also subject to other H othetical Conditions and/or Extraordinary Assumptions as s ecified in the attached addenda. ;; . 4 ~ Based upon an inspection of the subject property, defined Scope of Work, Statement of Assumptions and Limiting Conditions, and Appraiser's Certifications, my (our) Opinion of the Market Value (or other specified value type), as defined herein, of the real property that 'is the subject of this report is: $ $865,000 , as of: 3/18/10 ,which is the effective date of this appraisal. . If indicated above this 0 inion of Value is subject to othetical Conditions and or Extraordin Assum tions included in this r ort. See attached addenda. A true and complete copy of this report contains 31 pages, including exhibits which are considered an integral part of the report This appraisal report may not be ~ properly understood without reference to the information contained in the complete report, which contains the following attached exhibits: ^ Scope of Work : ®Limiting cond./Certifications ^ Narrative Addendum ®Location Map(s) ®Flood Addendum ^ Additional Sales ® Photo Addenda ®Parcel Ma ^ H othetical Conditions ^ Extraordina Assum lions ®Deed Zonin Etc Client Contact: Client Name: Aaron C. Jackson, Esquire `_ E-Mail Address: 111 North Front Street Harrisbur Pa. 17108 ` M APPRAISER ~~ Appraise Name: Joseph V. Heenan, SRA, CTA Company: Garden State Valuation & Consulting Services LLC SUPERVISORY APPRAISER (if required) or CO-APPRAISER (if applicable) Supervisory or Co-Appraiser Name: Company: Phone: 609-391-8862 Fax: E-Mail: iheenan613(a~comcast.net Phone: Fes; E-Mail: w Date of Report (Signature): December 16; 2010 License or Certification #: 42RG00012200 State: NJ Designation: Expiration Date of License or Certification: 12/31 /11 Inspection of Subject: ®Did Inspect ^ Did Not Inspect (Desktop) Date of Ins ection: 3/18/10 ~ - _ .. a ~ /•.......t..1.~.w. nnn~ ,... - ,.. -._~- '-- Tom'- `-- -- Date of Report (Signature): License or Certification #: State: Designation: Expiration Date of License or Certification: Inspection of Subject: ^ Did Inspect ^ Did Not Inspect Date of Ins ection: .._ ... LAND ..,.,,,,,y,,..r ~W, °, a p „„~, nip. ~ma ~u~m uwr uts in,,rvuueuv unmvanreu WQnoUi wrar~ perRllssan, nowever, a la moue, Inc. must be acknowledged and credited. Form GPLND_LT - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE 3/2007 LL~US 4'~ 1 Assumptions & Limiting Conditions rf~ u.. Pro a Address: 5324 Central Ave Ci :Ocean Ci State: NJ Zi Code: 08226-1244 Client: Aaron C. Jackson Es uire Address: 111 North Front Street Harrisbur Pa. 1710$ A raiser: Jose h V. Heenan SFtA, CTA Address: Post Office Box 1405; Ocean C' NJ 08226 STATEMENT OF ASSUMPTIONS & LIMITING CONDITIONS -The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis ~~ of it being under responsible ownership. . i -The appraiser may have provided a plat and/or parcel map in the appraisal report to assist the reader in visualizing the lot size, shape, and/or orientation. The appraiser has not made a survey of the subject. property. - If so indicated, the appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) antl has. noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because . the, appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. -The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless spec'if'ic arrangements to do so have been made beforehand. -The appraiser has noted in the appraisal report any adverse conditions (including, but not limited to, the presence of hazardous wastes, to~ac substances, etc.) observed during the inspection of the subject properly, or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent ' conditions of the property, or adverse environmental conditions (including, but not limited to, the presence of hazardous wastes, to~ac substances, etc.) that would make the property more or less. valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. -The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct.. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. -The appraiser will not disclose the contents- of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, and any applicable federal, state or local laws. - An appraiser's client is the party (or parties) who engage an appraiser in a specific assignment. Any other party acquiring this report from the client does not become a party to the appraiser-client relationship. Any persons receiving this appraisal report because of disclosure requirements applicable to the appraiser's client do not become intended users of this report unless specifically identified by the client at the time of the assignment. -The appraiser's written consent and approval must be obtained before this appraisal report can be conveyed by anyone to the public, through advertising, public relations, news, sales, or by means of any other media, or by its inclusion in a private or public database. Possession of this report or any copy thereof does not carry with it the right of publication. - Forecasts of effective demand for the highest and. best use or the best fitting and most appropriate use were based on the best available data concerning the market and are subject to conditions of economic uncertainty about the future. ~~ d . ~ _ A--..~-ll~ IfM9 L... 1. __~_ :__ Ta.._ e___. . . . .. ~. ... ._. LAM D ...."~~~y~~~.~ ~W' ~~ ~'~ ~~~~"°, nip. ~nw wioi mar ua ~o,nuuu~w unnniullroa wllnoul Wflti@fl p9rf1115510n, flowevef, a 12 m00e, loc. must be ac~mowiedged and credited. Form GPLNDAD LT - "WinTOTAL° appraisal software by a la mode, inc. -1-800-ALAMODE 3/2007 Definitions & Sco a of Work ~;~ No,; Pro a Address: 5324 Central Ave Ci :Ocean Ci State: NJ Ti Code: 08226-1244 Clier>t: Aaron C. Jackson Es uire Address: 111 North Front Street Harrisbur Pa. 17108 ' A raiser: Jose h V. Heenan, SRA, CTA Address: Post Office Box 1405, Ocean Cit NJ 08226 DEFINITION OF MARKET VALUE *: Market value means the most .probable price which a property shouid bring in a competifive and open market under all conditions requisite _: to a fair sale, the buyer and seller each acting. prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions ~~ whereby: 1. Buyer and seller are typically .motivated; 2. Both parties are well informed or well advised and acting in what they consider their own best interests; 3. A reasonable time is allowed far exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. * This definition is from regulations published by federal regulatory agencies pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 between July 5,1990, and August 24,1990, by the Federal Reserve System (FRS), National Credit Union Administration (NCUA), Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the Office of Comptroller of the Currency (OCC). This definition is also referenced in regulations jointly published by the OCC, OTS, a FRS, and FDIC on June 7,1994, and in the Interagency Appraisal and Evaluation Guidelines, dated October 27 1994. ~ , : ~. The Scope of Work is the type and extent of research and analyses performed in an appraisal assignment that is required to produce credible " =` assignment results, given the nature of the appraisal problem, the specific requirements of the intended user(s) and the intended use of the appraisal report. Reliance upon this report, regardless of how acquired, by any party or for any use, other than those specified in this report by the Appraiser, is prohibited. The Opinion of -Value that is the conclusion of this report is credible only within the context of the Scope of Work, Effective Date, the Date of Report, the Intended User(s), the Intended Use, the stated Assumptions and Limiting Conditions, any Hypothetical . ~ Conditions and/or Extraordinary Assumptions, and the Type of Value, as defined herein. The appraiser, appraisal firm, and related parties assume no obligation, liability, or accountability, and will not be responsible for any unauthorized use of this report or its conclusions. Additional Comments (Scope of Work, Extraordinary Assumptions, Hypothetical Conditions, etc.): > . . r a ~, m LAN D Copyright® 2007 by a la mode, inc. This form may be reproduced unmodified without written permission, however, a la mode, inc. must be acknowledged and credited. Form GPLNDAD LT - "INinTrlTAI " annraisal snfhuara by a h mnrlo rte,. _ ~ _nnrLnr n~ennr: 41911r17 Certifications FileNo.: . Pro a .Address: 5324 Central Ave C' :Ocean C' State: NJ Ti Code: 08226-1244 . , 1 Client: .Aaron C. Jackson Es uire Address: 111 North Front Street Harrisbur Pa. 17108 ' ~ ~ A raiser. Jose h V. Heenan, SRA, CTA Address: Post Office Box 1405 Ocean C' , NJ 08226 ~; APPRAISER'S CERTIFICATION - ~ I cergfy that, to the best of my knowledge and belief: ~ ~ -The statements of fact contained in this report are true and correct. ~ ,~ - The credibility of this report, for the stated use by the stated user(s), of the reported analyses, opinions., and conclusions are limited only by =the reported assumptions. and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. - I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. ~~ - I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment . - My engagement in this assignment was not contingent upon. developing or reporting predetermined results. - My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. - My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Un'rform Standards of Professional Appraisal Practice that were in effect at the time this report was prepared. - I did not base, either partially or completely, my analysis and/or the opinion of value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property, or of the present owners or occupants of the properties in the vicinity of the subject property. ,: -Unless otherwise indicated, I have made a personal inspection of the property that is the subject of this report. r -Unless otherwise indicated, no one provided sign'rficant real property appraisal assistance to the person(s) signing this certification. Additional Certifications: Client Contact: Client Name: Aaron C. Jackson, Esquire ' .~ E-Mail: Address: 111 North Front Street, Harrisbur , Pa. 17108 APPRAISER SUPERVISORY APPRAISER (if required) ~, ~~r ~ or CO-APPRAISER if a licabl ~ AP e) S: ~~ ' Appraise Name: Joseph V. Heenan, SRA, CTA Supervisory or Co-Appraiser Name: . Company: Garden State Valuation & Consulting Services LLC Company: Phone: 609-391-8862 ~ Fax: Phone: Fes; E-Mail: jheenan613(c~comcast.net E-Mail: Date Report Signed: December 16, 2010 Date Report Signed: License or Certification #: 42RG00012200 State: NJ License or Certification #: State: Designation: Designation: Expiration Date of License or Certification: 12/31/11 Expiration Date of License or Certification: Inspection of Subject: ®Did Inspect ^ Did Not Inspect (Desktop) Inspection of Subject ^ Did Inspect ^ Did Not Inspect Date of Ins ection: 3/18/10 Date of lns ection: m LAN d Copyrignt® 2007 by a la mode, inc. This tone maybe reproduced unmodified wfthout wrftt~ pemdssan, however, a la mode, inc. must be acknowledged and credited. Form GPLNDAn I T - "INinTf1TA1 " annraical enffu-~ro by ~ h merle ~,,,. - ~ Qnn ni n~~nnr ~i~nm Subject Photo Page Subject Front 5324 Central Ave Sales Price N/A Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location Good-Interior View Site 4,000 Quality Age Subject Rear Subject Street Form LPICPDC.DSS_LTR - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE Subject Photo Page Subject Rear Shed Subject Street Form LPICPD(.DSS LTR - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE photo Page Sua~eot_~,,.,.__---- subject Fro,~tlSide is m~e~ inc. ~ ~-g~-A~p,~p00E _ "Win'fO1AL. appra,~sal software by a Form I.PiCPDC.QSS L'[R _ `- . ect p-ley Subl 5324 Central Ave N-A Sales Price Gross Living Area Total Rooms Total Bedrooms 'Total Bathrooms Goo~_tnterio 1.acation View 4,000 Site puatity Age subject p-ley Subject Interior Photo Page Subject Interior 5324 Central Ave Sales Price N/A Gross Living Area - Total Rooms Total Bedrooms Total Bathrooms Location Good-Interior Vew Site 4,000 Quality Age Subject Interior _; ~_.~ ., ~, Subject Interior _. ~; ~~~ -_ ~~. a rr. Form LPICPIX.DSS_LTIR - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE Owner Jean Korkuch Livin Trust Pro a Address 5324 Central Ave Ci Ocean Ci Coun Ca a Ma State NJ Z~ Code 08226-1244 Client Aaron C. Jackson Es uire Subject Interior 5324 Central Ave Sales Price NIA Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location Good-Interior dew Site 4,000 Quality Age Subject Interior Subject Interior Form LPICPIX.DSS_LTIR - "WinTOTAI" appraisal software by a la mode, inc. -1-800-ALAMODE Subject Interior Photo Page Subject Interior Photo Page Owner Jean Korkuch Livin Trust , Pro a Address 5324 Central Ave Ci Ocean Ci Coun Ca a Ma State NJ ~ Code 08226-1244 Client Aaron C. Jackson Es uire Subject Interior 5324 Central Ave Sales Price N/A Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location Good-Interior View Site 4,000 Quality Age Subject Interior Subject Interior Form LPICPIX.DSS_LTIR - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE 17 Subject Interior Photo Page Owner Jean Korkuch Livin Trust Pro a Address 5324 Central Ave Ci Ocean Ci Coun Ca a Ma State NJ Z Code 08226-1244 Client Aaron C. Jackson Es uire Subject Interior 5324 Central Ave Sales Price NIA Gross Living Area Total Rooms Total Bedrooms Total Bathrooms . Location Good-Interior View Site 4,000 Quality Age Subject Interior Subject Interior Form LPICPD(.DSS_LTIR - "IMnTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE Payees Comparable Photo Page Owner Jean Korkuch Livin Trust Property Address 5324 Central Ave I u~ry ocean GitV Gounry Cape May State NJ Zlp Code 08226-1244 I I Client Aaron C. Jackson. Esquire Comparable 1 3644 Central Avenue Prox. to Subject 1.77-miles NE Sales Price 999,999 Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location Good-Comer View Site 5,000 Quality Age Comparable 2 3804 Central Avenue Prox. to Subject 1.63 miles NE Sales Price 950,000 Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location Good-Interior View Site 4,000 Quality Age Comparable 3 4608 Central Avenue Prox to Subject 0.78 miles NE Sales Price .950,000 Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location Good-Interior View Site 4,000 Quality Age Form LPICPD(.DS96_LTR - "WinTOTAL° appraisal software by a la mode, inc. -1-800-ALAMODE PROPERTY TAX MAP o G y : t _ ~ _ w ~ FIFTYF''~RST { F1~TIETH --~-~- ~ --,---- --:.~- = ~ =~-. • Form SCNLTR - "WinTOTAL° appraisal software by a la mode, inc. -1-800-ALAMODE AERIAL PHOTOGRAPH ~'~ge 1 of 1 ~. hlitp~~vv~vw.wtgsaxns:com8€f4$Jmapguid~20.(~9~/r~agcn~'mapagent.fegi?l'~JPI~+1ITtle=i~'T... 111 ~12~~ 0 Form SCNLTR - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE L~x-"~- ZOH~N~' M'AP i fc~+~ w,Ar i 4~ 't /~~ Y' a 7' :~ ~ ti.?~~'~; nc ~~yy,,, ~t ter. h'rh: y!,~ r:{Y inn ..s t + /: 3f ~ i'4 ~~yy h'~ Y ~~ ~ 4 . f'; r'; "/• 2 i `c o- d,c ? s ~' }• ; .~ rJ.:~ .~ iN' it ' k~ t' ` .~ yi~'~"S~~p.~ig lit y'k }~ ~ ~ 1'" LC ~.i Ci.- 4 ~f `+ a ~ ~ e { ` S ,3 SY f t~. . ~ { Y ~~ o x~sf ',s I ~{ i,,,_ ~~,~z u4 i ~, t' ~,, h ..., 4 s ~.i: ~ r.-nx+ ~ ': f. I} + t ' , i ~ t~ y .. ~ i ~ ~ , ..•. ~ ,• ~ ~~ ~ ~ L ~, ` Y `tom *~.~`.° t .~ y.sp~ ~ ' XJ4 ~ rr.•4:h ~t~#r ~ ~ 1 ,~ -+~' - ~ £~ iii s es ' ~ ~,'• a •~ ~ ~~",~z~'^; ' ~ qj{j ..tl;~9tatl. ~ K ~ ~~~ ~r '~~? ' ly'i ~~ ~y ti '~ ~.. t 24:~ t e•~'~ y•} ~I ~ltl~w~f '; { •~ 31 '*j v ~ . ~ i r+ Fu's.'' 11 ~ '- ~~ ~~_:~ ~ ~ 1~ .+.J t ..y t ~ , t « ~ ` ~~ ~~ ' ;}~ . ' 7y ,~ ~., ~~~ _'~k\ Y ,,cy,r , g 1 ~ .. t 1 \..~V~ti ~~ i ~ ~t } t b a la mode inc. - ~ _g40-AI.AMODE °'WinSO~p~" appraisal snStwa~ Y Form SCNISR -' ~~ ZONING ORDINANCE :Page ~ oaf t 43 a. tL rear yard shall be prodded opt every lot ~ accordance vritli ~~ S+~hedule of Dii~# Regulations, except as noted below; b. For waterfront Tats, a rear yard shall be provided as spcci~cd in Section 25-3f?~.17 rf this t3rdinance. c_ f?n nonwaterfront lots, the following features; nlay b+c extended inter the required rear yard as noted. in every instance, said features shall tae at least twenty feet (20'~ fror~a the rear lot line. area: I . Archit~ecrural decoration may ea~nd not .more than. four inches (4") into the rEquired yard 2. Architectural pro,~ectians of the haibitabie .portion of the building may extend not more than three feet (3~ into the r~quir3ed yard aria. Said architectural. projections shall notexceed a fatal length that is tan third (1 r'3) of the width. of the rear t~uilding facade. 3. Nor~abitablc`building area, such as porches, decks, landings and stairs ma~}r extend not more than flue feet (5'~ intd the rewired. yard area. t~Qrd. #Ua-06, ~~; Qrd. #{?2-29, ~3; C}rd. #02-19; ()rd. #E}2-3fa ~~; Qrd. #03-12, §~; {3rd. #~8-i2, §~a ~~-ZQ4.z Nan-Discrete Res~identi~-l.1'wa Family banes. R-2-3~, R-2-40, R-~-S{)y R-2-b0. (Cfrd. i~40-1}Si ~~; Ord. #00-QG, ~4; (3rd. #~2-19} zs-~a4~2.~ Pyre. The Non-iiscrete l~.esidential Twc~ Family ~on~s est~ilished in subsection 25-201. L1 of this t)~rdinance $re intended to provide and maintain residential areas fdr detached two (~j family dwellings in those areas in Gcean +Cty vyhere this type orhousing has either trac~tionally developed nor is currently the predominant land use t}~pe. ~Urd. #02-19} Z5-204.2.2 Permitted [J~ses. a. C?rne ti) family dwellings; b. Two (2} family dwellings; c. Essential services. toil. -19) zs-Z~D4.2,3 ~Gcanditional Uses. a. Churches; b. Public utilities! their service buildings and stations. (Ord. #02-19} ZS-2Q4.2.4 ~'eranit#ed Accessory Uses. a. Private garages, per the standards contained in Section 25-~OQ.I a,2(d~, and except that. detached garages shall not be ptrmitted in the rear yard of waterfront lots; b. .Private swimming pools per tl~e standards contained in Section ?5-3UQ.la,2(i~; http:I~~cleF]~shq.c~nlGontcnt~t3CeanClty-njfb~oaksJcodelvcltya2.h#m 1Uf29~O10 Form SCNLTR - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE ZONING ORDINANCE Page 7 of 103 c. fences per the standards-contained in Section ~5-17013.14; d. Tennis courts per'the standards contained in Section ~5-~flt3.la,2~~; e. Other custtxtnary priwat~ accessory buildings and uses ~~hich are located tan the same lot as the principal building end ethic}~ are clearly incidental tv the principal use. Such accessory buildings and uses. shall nat include an}r business acti~~it~r. (Ord. #96-? 1, ~ l Qrd. ~~-19; Ord. #0~"-2g ~~) ~~~2t14.~.5 auk Itequir+eme~ts, a. Lot area,.. lot . v~idth, lot 'frontage,.. Front ~ ard, rear yard, side yard, lat depth, buildiz~ height, habitable st.©ries, building coverage and imper}~ic~us coverage sb~l.l be in aceor~nce with schedules 1~, C," and as noted in the follov~~ng schedule. b. Cltilizatc~ri of the l~sign Incehtives ~d assaoiated bulk standards shall be in accordance unth Section ?~-2f)4.27 efi seq. c. CTtilization of the Old-City Design Stxuadards within the Old City Overlay Zone shall. lie in accordance with Section 25-~1t) et seq. (Ord. #€1219; Ord. #~!9-~$, ~ ~) ~E:ditor's Note: ~chedu~ss 8 -arid G re#'ezred tv herein may be found i~a 5e~tivn 25-249. l~dr~-Discrete Re~deatial ~-2 banes - ~~c~+e+dule of ~fis~~rct ~kegulatians Click rf E:111=. f+ar Schedule: 25-2ti4.2.6 l~+~r 'Ygrd. a. ~ rear -yard shall be provided axe e~•er~= lot is accordance with the Schedule of Uia#rct Regulations, except as noted belflw. b. For waterfront lots, a rear yard shall be pravide~d as specified in Section ~~-~~a.l~ ~f this Ordinance. c. an nonwaterfron# Pots, the following t~eatvres may be extended. into the required twenty-~rfe Foot (2~') rear yard as nrrtc~d. In emery instance, said features shall. b~e at least twenty feet (2Q`) frorn the re2~r lot .Brie. 1. Akrchitectural decoration nay extend not more ti~sn four inches (4"~ into the required yard area.; ~. 11~rchi~te~cturol projections of the habtabble porfi.an of the btxildi.ug mar extend riot more than three feet ~3') rota the squired yard area. Said arcl~itectur~l projectic~r~ ball nit excead a fatal 1en~h tbat is one-thud (1I3) ofthe width of the rear buildi~ facade. 3 . 1'~onhabitable building area, such. as porches, decks, .landings. and .stairs may extend nc~t more than five feet ~5') into the requured yard area. (orrl. #oo-o~, ~~; c~a. #a~-~~; ard: #~x-y9, ~~; ()rd. #~~-~~, ~~; Qra. #o3-1?r ~~; ~~. ~tl9-~s, J+ ~ ~~ 25-204.3 Resideu~ial Bayfraat (R B}.Zone. http.l~clerl:shq.comllContenf~QceanGity-ajlbooksleadc/ocitya?,htm 10I29/~~ tU Form SCNLTR - "WinTOTAI" appraisal software by a la mode, inc. - t-800-ALAMODE ZONING ORDIN' :. M ~` ~. ~' ~~ s .~. 0 c"`. 0 .... ~ ~,~ ~ ~ ~ ~ ~~ ~~~ ~~~ ~~ ~~~R~ ~ ~$R~ ~.~~ ~~, ~~ ~ ~ ~ s,m ~~~ '~ x ~~.~ ~s~~ ~ ~~ ~~~J~ ~~ ~~I~.~- N ~ ~~~~ ~ ~~~ ~ ~ ~ ~~ ~: ~ ~ ~ ~: ~ ~ Y~. M r ~ ~ ~ ~ ~ ~` ~ ~ ~° ~,~~ n ~~~~. j° `~. ~~ `~ ~ ~. ~~ ~` ~. ,~ ~. ~" ~ ~ ~ ~ ~ r ~ ~ A ~' 1 software by a la mode, inc. -1-80Q-At.AMODE ~VJin'CO'[AL" apPraisa Form SCNLTR - 1~`~' ~~., b n C~ C7 ~ A ~~ N ~~ i= }OM A ~- ~' V c m SUBJECT DEED i~liMl?Y~~t l~tYP~3~5* #9 Goat i der t4C i ot- f .00 R~dlty'TrtutSPrr Fa@ .~ Date 12-1~-~t47 6y CLERlq.O Ptejt~utd by: 2•~rCNAFC. A. Fctsco rl:, uR:E ~. <'}~-- )t'li4hael A~Fn:oa lt, >;agaire (( AEIYI} 'rhir lUeed is rnsde on 3.~.~ee...L.ea~ ,~ 2007. it3ETWEEI~F: ~RANCtS ~. TC4RKUC~'i stet! JlrAN 7coxrc~rclly detsteand and r+ire ~rboae idrlrtiaa ls: 1#~7 Maplewood Dative, Neu Ck~tlaard,l?A l ~'tlTil,Z2tb raferrsd to as+Gra>rfar, AiNbe TR1C JSAN M. KO~KiTCHLIVING7'RL1$1' BAITED i_1n41br, Frttotxs J. Kerlatch, Tlrtralta ,.- aiea~ce toddr~pra ~: 1,77 Mapika-ood Dcnrq 1+}ew {~+rnberltmd, FA iaoaa-216 retertro@ to as Crt'M1ritbO; 'ILe word "tiTwtuat" and "Grameec" s6aJl meam all tfranwts and all GranuecelilsUed aDave_ TItAJ+1SJ~Eit Q1Q Ow'NS~tS~1P. The Gtxntor i affil t;ottveys ( art vry the pmpartyy d~cttlitd below eo Gnnte~. 1 bis tntukr is t~aadc Snr dte sum af+~te (~1.0~} Dnilar: The t3raettor ecl~a~w•la+~ges reetiptof#ltia m4tatg. TA7i MAP R~'&RENC.B. (1J.I.S.A: 4~s i 5-x. t) Tvltr~icipalily of Oce~t City. New Jeiscy. L;Y Blgei No. 53{i~ Lot Na. t? A3clrtss; 33T~ Cbt!tlral A~-cnuc '" PROPERTY. r~LL'fQf1T CCRTAIM LOT, tract a patzel of Batt and premiers sitmit:, fyin~ aad being in tltc City of Ocean City, Gortnty sf Ctepe May and Stato of Nt:w ]arses, bomdcd and detar{bad at fpUa'vs: B11"II'rtG Lai 763, Section L, plan of Ocean City Aviation. SliiliJTil'r~N+Cr aft tbo Nordtwta~ly Tine QiCwwtsi AYetaea ~ 1'aet Southv-octwa+dly frail- the 5uurttCtwest+edyline of S~'r 5troet, arming Southw~atwatr, aiattg ~ Ncathnrcetntly line of Cenatil.4~twe. +14 fret, and of tbtu ~ridfd axtandiag Tiot'lhtrestwesd(Y, between Irtws patalltl veldt 53"' St~et,140 feet ton 15 feet wads street lKirf+d'~t'N k& Ld. I7, )31odr 33Q2 oet the cuartrzk Tax Map of Ilse Dirty taf Occur CSty. [INDEit A~ D STJ83t~G'Y` to arts and all eovetmo~ and caditiats, r and rettrxvat3aese, iestri4tlons e~ easceixnes orreoozd, ifaa}~. AQ..IAtG tiu same lspd aad,prcnai9ea which tt~ lrataroa of Gharks 7. Rorl~ncat. Giibort Q. flillsertt:on, Snbstiiwoa AdenWstntear, bRi' a deed dated rRnuary 29, 2044, and raotdod tya Match 2, 200+1, in I1dsy Cotmsty t..lerk's t7fYi~ in Trod Sob>k 3067, Page ] 6, ~rsnted and ctusveyrd uabv Eraoc~aa i. Rosl<iech aad Joain 1~.+d:lCUah, . hasbud turd wife, tlx; t~sokK.€ bereut, m sae. _ ~ ~tilM(SlCS BY' GftAN'I~OR. Tf3. Ca'tatKor pt+enai~s that tEte firsrrt~ des dens no act w enc-rtulret the. pmpcalp, Tfus peom+ise is ca.Umd • .,"Ca+ertattt: at: ~ Granto~t Actt' {N.J.SA. 4fi:4-6}. TUi~s ptvrnice nneens t6st ttfie Form SCNLTR - "IllfinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE SUBJECT -DEED . ~.:~; R'rF•i ttiw. ?r19-D7), ETktE Cf NEW ,~Y . NUfT lUaMIT N ouw..~cA'[t /YRFiDAV-IT OF CON810~RATIbtQ FOR USf* BY SELLEfi fGhopber 4!. P.L19f3E, ats amended iturough CFaapb~33. P.L. 2006j (tirJ.t;.AaB;16.6 etsaq.~ BEFORE G4IYEP'it.~TFN6 TFNS AFI~OAYR Pl.i¢A6E: READ Tl~ N~8YRl1GT6QNS OW ?HE R~-ERSE EIE1E Of 7Hf"t J'10Ri1L STATE OF ErL'tYtl 3,r4'A2iIA irOR RECOR Utz ~#+tLY ~'S3, t;axaaatycaer CooaiOOraobn 8 RT CQUhiT'Y OF CV:ihERj dSd$ pa~i- Ey +RrJ HIl1tJ14PAL[TYOFPRdPEi2TYi.QCJ1T14M Ocean Li.tY •Uwsywbd"C'aoineGatMMiativihe><cfuaivaiyi~rteuntyrcarr. ('~} PeeLt?'rY OR L.-~~r~PRif13F^~A (Sae k-at~uv~ns #~ arad'~# wi ~awu~e sib) Ca~p111a1/al, 8[td1PCx8 3. KO]tK[FGH ~R. (~~ dtlltl 8A/t1Ra1 a3COOrdi7'~ t? ~ U~iOlk fir aedn, GiferM} depoaas erid fxys ~ ie the ~n~o1' the C,frdg~oCS in a deed dated ~f-_~ tran5ta~rinQ (SNaaaftx, krp^1 lu@ati. Co~'pa+Nkr ON6oe6 Olfbcrof'litts Cdliafataay,lenaiMQtmlUultaa~, ada} "anal propo(ty ideradtlsd as Btack nurnLvr.._.~ Lcfl »UI15ba4r ..._... ~ _b~{t~d at ~~4 t:ral Awsnne, •OCesn ~ iC Csg~_ leg, ~~a~nty. 4iew Jersty arx! turne~ecd ths~a . 181rwrt Addrrss• 1'sa;Maa~ ~r,rr~r.ri ^ .~rirrnn r. r ~ ~ISloEtxarlaN 3 i .0[1 , {,~es~ns~ruad~n+s ~-t ar+ai ~-s an ro.~rse sltta) E~ ProperEl/ ff~fenred is Cfass 4A #6 4G {cirda o:ae). tt pnpperty treewfesred is t~ee,l1, ctalaatstton irr SoSiiOA ~ 1-eiaw to r~ayplrvd. ~3~A)REgIfIREp t:ALICVL.ATION ~P fcU7J11.1Z6D YALUATIQFt gOR ALL Ct,.~t~ ~- COMNiFRCU11_ pRK~ERTY TRAN3JlCi14fi1E: (see Msavcaans and fitl ae ra7verxe ssda) Talai A~ssessasf Vataawtion a i]7ree~'c lZi~o ^ ffgtaalizoti Assassed ValuatFon tl t7frr'CIOif~ R!{i0 to Man tAi[i iQ0%. lAv ooeaa'ia:od vslaxrHOa wir tae am enravnl penblor Ilurp the eaesrad w>vaa. K D'reaaol`r RIIIio M a4uwt b ar Ga eap,ss of t 00'!i~ the axs~ssd vsfus»il tra equal b me ega~eit~ed rrah~xrtla~. i;J E.l~l~~ a (Sr+ lr~sDt,~'va !8 on n+werst ttdeyt f7eooneryt aCalalat M'aa11b s deed traneacian is tally a~tampt Irani tM RaoitY 'Fnansler Fan tlnFoa# ~ d. 49i P.L. 1.800, as amended fixottgh C. 86. P.C. 2004,. for thv Folla'lwdtp a+esawa~(e). A+faa* retenaanee to sou~anpdan syrrabal la insratl`acient. ~~ ~ ceeta~l. t;a} FQr s cvnsideraGian of less tha.A $ibU.Qd. ____ (5} 1?~'ttu. Ex~~Tia~f ~tzorrt ~ (See M~rtruaaGovr as a"lati w-~ras aa4f~ taart~: as t t~ arppttrl~o ~) orr~ayy. AU. aaaxtes ~ APiaftOPRU1tE c~~aflrtY wusT ~ eHECIaCO. Fa~lltlrs eaa do sas v-111 vald claim tax po~AW sxempdtan. nt tlsinas Itwd pak ~d Irarasa~Ctbn O axatnpt from ~taiie pftdions qi the 944tc Pse. ~PP+t Pas, and t3ertisnl Purpaae F`eaz, ee appticabk. impvprd bf- C. 17ti, P.L. 1Qi5, tr, 113, !yL 2l1tM, end C. ~, 1',k.. 2f104 fpf Mfe foYdllllp ressaaa(ss A. '~01ilOR cfTiZEN C~aarNOata} C! 62 }~a«rs v~ eg4 air erer. (8M hritnraffon ~ o» ,averaa slots ~ A ar Eq 8, BuMtl Pi=pt5dN G~ranmKs} ~ tsgall~~ blind or, D!isAeLEn POitSOf1 ta~raracoa~e) i~ f>on+a~1enty and ~ dtratsfad ~,,1 R.t~,it+pi dixaDilt~r e~ymaFlls ~ Not o*'r+tugy+r~+i~+oyad' $anior citlzeas, 611nd pa3rawtis, >K dia~br«edpeasans muai also rnIlRt sEl nr the fdbyvlniQ Orlt+idfiC C f~wnrtd an0 caxtpied b7t grantau(s) s: Grnap of sad. E:t ReeideN of State of Naw.lsaerry. r one or nrro.fsmMy rosldmfipl preer<i~is. ~ Ch+vyexa ae )Dint ta,ssnts most sa qualfry. 'aJ THE CASa=_ QF tilJuBAND AND YY~F.a~CIVI! UMON PAS, t'fdtLY DAZE +~rMl1TOR NF.t•DS Td QUJU.IFY IF TENI116tY'8 8Y 'iHE BdT1RETY. G, LOMV AFIb rtOC~2AT'8 WCOpAE HQUSIN6 ,('sties basl'~vclion» ~ iewvar sa~oAaj ['-! A1~ordetle aocorging to F4 U.D. sCanthll'ds. G ReaCaved fofoc+ouPanaf. tAvota irwa:aafe nq~uinnr-rnis of reg[on. ~ 5Ut>~f IA teSS1a~ coratn>is. ~6} (sae Jasvuciia~s ~?, t170 ,trrd Ir~f or! xvv>so lids) G9' Enfire4yrae~wimprovanard. t ~ tJotpuswlouslyoocupisd. (;,; Nat vr+ovlousgr tread for and purpase• ~; "N"EW l~NSTRiICTtO~I"' printed cii6sariy tat the top of the 10st page et the deed. Oa i)eponern aawlavs 1~ AJGde~lt ta'lnduce oouraiy a=le-X ar r+g~* of dVwds b moatd ihr pea~A ana wcspt 1ha lts- ecaordanos wald~ tlts pre+rleloars d Cfa~pter 49, P.L 1 DEE. out a~neerQad throupFt ~hi~lof',3~. P.L 2oD6_ BuDHatbod 7aad rvcm to tlAi'or6r tno ~~ - ~„~~ I~dIS J. LD1tRUGH Ilals ,~- day ot~ , ~~ ~' Qepa7naaaf OraMpr steene lk?7 M~a~ltswoayd E ., ?Flea t78poa~erlA~SGaaass tirr~ltvrAafdaaaeral'i'WN et~kvly dambes~.and, PA 17070-2214 e t~lttYlv~twna ncxxaot. T 1r1Q'#`14WALSPrAi. "`' Esrtld~inGa~eago~ SieYV 9 ~~~. l~reuy PutNlc ' - ksaven~nl Nuatbet_ t~ o~CNkt ~G . ~s'•~emlaidn ar~Ires ~ p~ ~ o:rad o Dade. ~eooro.d ~ OoamAy Fbeoordtn7 Q1Aosra shall foeaaaard onaa lacy of snob AlOdavlEd Cowtidrralion for Haas b'Y Sahar*Atlli sedlon 3A a natl. 8TA1'F: Of tew J~eEY- OM94N of TAirAT10N raliaxxsi TRQILTON, W esrsaz~a3si _ atYfa~rwN: lla,~lalr T1tA1t;l~FCRF~ IIINfT Zlae Diaa:a:ltat 4<Ihs Diririon of l'sxalba- h he Orprmarnt d Ilav Ta~aowry that parrcaiard Ibis fdnn ss re9vtird b'7 law. anal riaY got ho oAlored tx a11MA~10 w~09aaltpatorsppaovat ar dae f]'ra~ebc. For lntaar+auaa m tlar iteelly ieangwr Fan or m palru a apy of M# Mbe~r +~Wt ihrr a~r~bn ar T~oast~ai wa+b.a. ~ rrwwslatate~.ilrllMasYryRlowhvrYfpfAsaakaKiaha. Form SCNLTR - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE SUBJECT DEED ~r~ ~~~ss ~a~~.~ :~ GITlREP-3 Stye of ~(®t~ .1er~sy n SELLER'S RESIQEIYCY CE[~1~'ICIhTtO~t+f~'E'XEMF''Tl+C3f~ . (C.55, Rf.. 21104) (Filsave Prir# arlype~ a tiiarsie(s) I~RAJ~CIS S. liO~ECUtA & JF.P-t+I KORI~Gti, hvtabflnd anal wife Current Resident rase: Street: 1~-77 Maplewood Drive City. Town. F"dsf Olflae .State Zip Coda New Cutmberla~d, F~, 17{70-223.6 • it hi~tr<t t ~1~- _ arsit;~ 5svz 1T stre~tAdares~.: • 524 Ge~tral Arreaue Cdr, Town, Past ~flice State TJp Code !ocean ~Citp, NJ 0822& _ _ Seper's Poraoniago of Owneratrip Corisidoratian Idsit~ ate 1flaX $ l . flE1 1, ~ ! am a reQidant dyer (bdiwidual, estate, or trust] of tttie Staff! of laew deney purcuarrt tc- N.JS.A 5dA:1-1:k seq. and vViN file a resident moss Income tax r+ettun attd pay appi6cabile texas on amy- vita yr kroame from the disposition of this pa'aParty. ~. ~ The real. Prcperil+ 6airlg saki +~r transfeixeG i5 used exidtcsivefy as a-X pttndpr3l restclertce u#Edn the tneanir~ of sisc;tivn 121 . of the fetierat lnterrral Rsu~ue Code aF 19~r, 2fi U.S.G. e. 121. ~. ^ ! am a mortgagor coming the mortgaged p~mparq+ tv a marigages kt furaclosura or inn a trar~er in Nett of fvredosure wlEh no addiroaet oar~sideratiari. 4. Q 3altar, transreror ar transfier+se is ar- assncy or authority- of the Unttett States of America, an agency or aut}uoQiiy of tl~e State of Flew Jersey, the Federal lVatbnat Albrtps~e Assor adon, the Federal ~Q Loertt Mdrbgaga Corpot~tioew the Qavenu~uent F}atbrtial Mcutgage Asso~tior-, or a txhrate mortgage tnsvrartice tx~rrtpartiy. 5. [~ Seller is rat :an ktdh+idual estate or trust. and ss sucn sot requtr+ed to make an esHrr~ted payment prrrsrtartt W N.J.S.A54A:1-i et seq. t3. ~ The fatal ooreslderaiion far the p-+aperty is S1,t)Ol! or lass Brut as such, the seller is not r+egi,irori 1lo make an es6imsted paryrr~ant pursuant to N.J.S.A. 5+tA:5-# -4 in sa~q. , 7. ~ Ttte~ gain from the SBt~s 1vi1! hot be rec7o~nlzed fur Federal income taz pprpo®ers under I.R.C. 3ect[on T21, 1031, 1033 cr is camatery pla4 (GIRGI.E iN~.APisLft:A-8L~ ~ECTiON). if. evdt asC#ba 4oas 11Ci uli'i~ab~ty iwpply t4 this trainsactic+r., #ho salter sckrtedges the oMiflation to file s tdeMr Jersey li~cartie tax tt33~rrN for year ot` the rats. ~ Q 7rar>water ~ ar- sxerulor or• adnninlr ~ a ckcctfent to ~ devises arhair ~:rfFect d1s1t'@ytttiat'r of i#ie dscadant's ssfiate Gn aroor+daryoe wish the pro~vlsfOrter of itra darsidsnt`s will or the ir-dtstata i0tivs a-f Phis state. ! Th! undeeeigrrod und~a4ands thrt ~k d«dar~lian and ks oonbenls. nt®y tfs `d{s~losae! or prdNbdtM~tl ip tt1R Flaw Jersey t7lVatort bf TdirAMrXr ~Id ~ air ~1se.ataMimwHnt ~ntainmt t-srsin avuld ba pu~tiathbd ~ firla, iatp~,or troHr. I tuelherrrrore3 dec(ero that J haw axan>IinaQ dss~rfion and, is the,Mj at ad my knrsntodgQ and beGkf, tt is true, correct acrd eantlete. rite t:IS J. R0 Stprteture (F.ei{e~ • hdroah ~ i~dNar olAllohn4y ar Atbmey iA ~ ,~'~.lo~r. Std o~t'tt,T ~ .: paw ' Jp.APT ~KC)RfC ~ • • sr~,ae, ,: _ .. ~' er) •Plaree dra~r~ PanYer ofi rreyr acr b ti#q , Form SCNLTR - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE SUBJECT DEED Bft D3319 P93~5-~ ~'~` RCr~MOED CdUiliY DF GAPE 1tAY . Reza ISatl~ Fulslsd~ir ~CounEsi ~Lsrk. Rtcardles Fee 'Mt,~pp IkGst i~~14-2q~D7 is C~:30n Gabgibr has ant alloyed myone alst ro t ~ >~ ri~Lta :~Fac~t rho Pa~-t~ {s~.scla as by r. namt~ege ar ellox~ a to be en~eed a~riart tht Gxanlor~. SIGNATUItEB. T8~ 4rcamkgr ni~ss ~ ]aeerl as oC t6e data'ttlum cop of ~a firxt gogt. Sig~aesI, aceiod earl dtlt~ct~od iq pxac~ at'a? sttasted br ~~~ ~ ~~~ B8AlrCl5 J. Cld ~ ~. ~~' Kpltt€YtCi3 CIS~t`)L7kTG~l'J"E OF ~C11~tU'tPL.BD~I` BY IPk~311r'[b'UAY. 5T~4'~ OF Fk~~= Ct}L>rZY OFD: t am a. t~Fatsry Pub>iS, as at8~r autLoxixad b talx a~aktiorGlacigmarts surd ptaoi! !n [kis SceaC. t lixa Ctris . iGl7stnNled~ blow m c+~fjr that it wse mach bci~ae Esc oa tbes ,~~,,,, dry of w.~., ~s..t , 3bb7, ind dust >p'RAIHC'Ji~ 1. ~11'GA rose JZ~-N KCfRk'i<JiCB-lkasband sad ~ rPP~ 6etara ma in.yr~oa (If main lip one p~suc iid's, dso w~t~rds "lllii peiaop" ~ iaclaRie d1 persona aau~nad wlw appeared beinzr tie of~eer and made th>s ontaaowledgmenl.} X opntete~tied ~t tlr:.l~r'!0D is a,a pasem nencd iR Ynd via algaedtins Dand_ Ibis gesson also adortealedged:3ifgntn~, aai,bt= ma deliv+era;g thts D~aed as fists gecpon's act end +kod for Qae U6C3 Aq~ ptlff109iCe aJ[jtiCdellil,lq f~1SDBBd. ~]eb j?CfbOR eJao acs171v~VladgCd lbai the ~ e1>a iCtUel Coossidarer'aon paid Or Ia 1re ~ fir 16e iraaefar 0~ cede to seeiiy ~id,en~aod E'~ thiut Deed. as such. o~~3cntia~ is d~5aed in P.I..19b8, t:~, ¢l {c~ is S I.IXM. ptery Pub LVAMGt ~~L6E,d[. ~ ~ rRD~hei casrwseip4 ex " ~F2~ p Form SCNLTR - "WinTOTAI" appraisal software by a la mode, inc. -1-800-ALAMODE APPRAISAL INSTITUTE CERTIFICATION I certify that, to tlYC best of ~y kaovrl,cdge and belici: - The ataterne~ta of foci coetaaztecl in this re}~ort .are tt~ and c4rreet.. - Tl~ reported analuses, opinions, wd conclasions sre limited. only Uy the reported assaumptaans and lirctiting cxYnditiaz~+ and are my pe~onal, impartial: and unbiased professional analysts, upituons; and conclusions. - I l;av~ no p~sant or p~mspcotivc intrncst in tltc pragertx that. tlre'sulij~ct ofthis. report and no pbrsanal interest with respect la the parties involved, - [ have no bias with respect to the property that is thc.sulaj ect aF this report ~ to the parties in~lvod with this a~signrncnt. - Iti+ty erlgageniettt in this a~ssigninent was not cos~ing~.t upon dev+~topitag or reporting precieo~mirie~d results. - hf~~ compCnsaEien ror oompl~tirig t asssg~eertil is r<ot carni~get~; upcan t~ ticvtlopt~ucrn or resorting o~'~i pr+adttc~incd vnluc or dir~tion ini valuti tltat :~vtr~ ii~e cause of thES client, ~e amount of the value opinion! the attaiuunt:trk o!'a :stipulated result, ortl~ occurrence of a sutase~weut crent.dirertJy relaatcci tr+ the intendctt u~c of this a~gpraisal. - TU,e reported analysts, apinians, and conclasions cvcre developed,, and thus rcport.has bees prepared, in cot~formitg with the roquirernaats ofthe Code of Frofees.Qanal ~.tltics & Standards afl>rofessional Appraisal Frftctit~ ofthe: Appraisal Institute. - The rrp~tcd analysts, opinions, and conciaasious ~vesc dcVclolxd, rind tlvs report-has becr- prtparco, in aonforniic~r with the t~ifornr 3tarrdards of professional Appraisal Practice, - C,g~ compensation rar complctiug taus a~ssig~ttncnt is nvt cantingcnt upon l&c deveioprnent: or r$porfin,g of a predetermined ti slue or directive in ~lua that favors the cause of t}te client, the amount, of the. value opiiuan, the.attainmeat. ~l'a.stapulat-sd result, o~r the occxmeece of a suttsequent event directly related io the iniendtsd use of this ttppnti~l, - The tssc oC this t+cpart, is subject to the requir+emexrts tYf the Appraisal 3nstatu~ rtla3i~ tt~ review by its duly axrthorrtxd repceserrtatiti~es: - I. lave rnatie a p~rsaual is~spcction aftttcpropcrty "that is thG submit of this repiart. - No erne provtideci aigttificaxttreal property.a~praisal a~siste~nec to the petsa~a si~taitig; this c:erti~icatioct_ As ol`the da~oe of this report, I (Jo~epu V. Heenan, Slt~k} lyas complett?tt the c~dnuing education. paq~raeni of the ~4,ppz~aisal Instifiut~. ~ ~~ Form SCNLTR - "WinTOTAI" appraisal software by a la mode, inc. -1-800-ALAMODE P # Flood Map Owner Jean Korkuch Livin Trust Pro a Address 5324 Central Ave Ci Ocean Ci Cou Ca a Ma State NJ ~ Code 08226-1244 Client Aaron C. Jackson, Es uire Prepwared for: Ir~~erFl+o+~d Garden State ~laluatian & Consulting Services, LLC. ~~ ~+ "soar 5324 Central Ave www.interflood.onm ~ 1-840-252-633 Ocean City, NJ 08226-1727 CdRPO#tATE LIh11"fS ~QtNCiDENT W iTH SHl?Rf Li1~l E FL{X~DSCAPE cai Fbad Hazards Map APF -Map Number 3~531aU0U4D . Effective DatE July 15,19'52 1 _ Powered by Fk~odSaurce $7'7.77: FLOOD waw.tiaodsouroe.o~n a ~sssano sanoePnose F7oodSanroe ca~pontions.'a reserVed.:F'a~ts ~;a3t.3ae and ee7a.e>I3: o~ P~0• Fw in(o:sffoQtlood~otr~e.oom. Form MAP_LT.FLOOD - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE Comparable Sales Map Owner Jean Korkuch Livin Trust Pro a Address 5324 Central Ave C' Ocean C' Coun Ca a Ma State NJ Zt Code 08226-1244 Client Aaron C. Jackson, Es uire Form MAP_LT.LOC - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE