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HomeMy WebLinkAbout05-04-111505610105 '_'J REV-1500 ex coz_~~, tFt, OFFICIAL USE ONLY PA Department of Revenue Pennsylvania Bureau of Individual Taxes `~~pT~`~ County Code Year File Number PO BOx z8o6oi ~ pINHERITANCE TAX RETURN -~ J ~ RESIDENT DECEDENT ~"I ~' ~ ~~~ L'r Harrisburg PA 1'7128-o6oi ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death MMDDYYYY Date of Birth MMDDYYYY 194-16-9000 07/21 /2010 01 /15/1923 Decedent's Last Name Suffix Decedent's First Name MI Brobst Richard C (If Applicable) Enter Surviving Spouse's Information Below Spouse's Last Name Suffix Spouse's First Name MI Spouse's Social Security Number THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS FILL INAPPROPRIATE OVALS BELOW ~ 1. Original Retum O 2. Supplemental Return O 3. Remainder Retum (Date of Death Prior to 12-13-82) O 4. Limited Estate O 4a. Future Interest Compromise (date of O 5. Federal Estate Tax Return Required death after 12-12-82) O)p 6. Decedent Died Testate ~ 7. Decedent Maintained a Living Trust ~ 8. Total Number of Safe Deposit Boxes (Attach Copy of Will) (Attach Copy of Trust.) O 9. Litigation Proceeds Received O 10. Spousal Poverty Credit (Date of Death O 11. Election to Tax under Sec. 9113(A) Between 12-31-91 and 1-1-95) (Attach Schedule O) CORRESPONDENT - THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO: Name Daytime Telephone Number Robert J. Brobst (717) 261-6111 ~.: First Line of Address 122 Stonehedge Drive Second Line of Address City or Post Office State ZIP Code Carlisle PA 17055 REGISTER S USE ONI~C ~ ~ C7 -~[ ~~~ ~n0 r r• ~~~ ~ ~ -O ttJ ~ DATE FILED ~ ~~ r~ I C7 ~~ ,ir_~ "_i7 r- tLi -' C._> -, , -- C 7 I.:_ t~ f' C~ Q Correspondent's a-mail address: br02kra2 comcast.net Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete. Declaration of preparer other than the personal representative is based on all information of which preparer has any knowledge. SIGAI,QTUf~E Clf PEf2SON~ESP~Of~SI~ FOR FILING RETURN DATE J/~~ /~ ! / ADDRESS ~~~ }\ ~J~ ~~t c ~~ ~n ~.~y O 1 l Z Z e-~Qe ~/` J /"t 1 SIGNATURE OF PREPARER OTHER TH~REPRESENTATIVE ~ DATE ADDRESS PLEASE USE ORIGINAL FORM ONLY Side 1 1505610105 1505610105 J ~ J 1505610205 REV-1500 EX (FI) Decedent's Social Security Number 194-16-9000 decedent's Name: RECAPITULATION 1. Real Estate (Schedule A) ........................................... .. 1. 2. Stocks and Bonds (Schedule B) ..................................... .. 2. 3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C) ... .. 3. 4. Mortgages and Notes Receivable (Schedule D) ......................... .. 4. 5. Cash, Bank Deposits and Miscellaneous Personal Property (Schedule E)..... .. 5. 2,400.43 6. Jointly Owned Property (Schedule F) O Separate Billing Requested ..... .. 6. 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property O Billi R d 7 149 468 34 ...... Separate ng equeste (Schedule G) .. . , . 8. ( 9 ) ........................... Total Gross Assets total Lines 1 throw h 7 8. .. 151,868.77 9. Funeral Expenses and Administrative Costs (Schedule H) ................ ... 9. 10,060.81 10. Debts of Decedent, Mortgage Liabilities and Liens (Schedule I) ............ ... 10. 2,067.05 11. Total Deductions (total Lines 9 and 10) .............................. ... 11. 12,127.86 12. Net Value of Estate (Line 8 minus Line 11) ........................... ... 12. 139,740.91 13. Charitable and Governmental Bequests/Sec 9113 Trusts for which an election to tax has not been made (Schedule J) ..................... ... 13. 0.00 14. Net Value Subject to Tax (Line 12 minus Line 13) ..................... ... 14. 139,740.91 TAX CALCULATION -SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 (a)(1.2) X .0 15. 16. Amount of Line 14 taxable at lineal rate X .0 45 16. 6,288.34 17. Amount of Line 14 taxable at sibling rate X .12 17. 18. Amount of Line 14 taxable at collateral rate X .15 18. 19. TAX DUE .................................................... .....19. 6,288.34 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT O Side 2 1505610205 1505610205 REV-1500 EX (FI) Page 3 Decedent's Complete Address: File Number Richard C. Brobst STREET ADDRESS 135 Yorkshire Drive CITY Mechanicsburg STATE.... ZIP PA 17055 Tax Payments and Credits: 1. Tax Due (Page 2, Line 19) 2. CreditslPayments A. Prior Payments B. Discount 3. Interest 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Fill in oval on Page 2, Line 20 to request a refund. 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. Total Credits (A + B) (2) (3) (4) (5) (1) 6,288.34 0.00 6,288.34 Make check payable to: REGISTER OF WILLS, AGENT. PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred .................................................................................... ...... ^ ~ b. retain the light to designate who shall use the property transferred or its income ...................................... ...... ^ c. retain a reversionary interest ........................................................................................................................ ...... ^ d. receive the promise for life of either payments, benefits or care? ................................................................ ...... ^ 2. If death occurred after Dec. 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? ........................................................................................................ ...... ^ 3. Did decedent own an "intrust for" or payable-upon-death bank account or security at his or her death? ........ ...... ^ ~ 4. Did decedent own an individual retirement account, annuity or other non-probate property, which contains a beneficiary designation? .................................................................................................................. ...... ^ IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FIL E 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 Jan. 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)]. 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)]. • 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(a)(1)]. • 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)]. Asibling 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->5o8 EX+ (>i-io) ~ Pennsylvania SCNEDIJLE E DEPARTMENT OF REVENUE CASH BANK DEPOSITS & MISC. INHERITANCE TAX RETURN PERSONAL PROPERTY RESIDENT DECEDENT Richard C. Brobst 194-16-9000 FILE NUMBER: ESTATE OF: Include the proceeds of litigation and the date the proceeds were received by the estate. All property jointly owned with right of survivorship must be disclosed on Schedule F. If more space is needed, use additional sheets of paper of the same size. REV-1510 EX+ (OS-09) ~' Pennsylvania SCHEDULE G DEPARTMENT OF REVENUE INTER-VIVOS TRANSFERS AND INHERITANCE TAX RETURN MISC. NON-PROBATE PROPERTY RESIDENT DECEDENT ESTATE OF Richard C. Brobst 194-16-9000 FILE NUMBER This schedule must be completed and filed if the answer to any of questions i through 4 on page three of the REV-1500 is yes. ITEM NUMBER DESCRIPTION OF PROPERTY INCLUDE THE NAME OF THE TRANSFEREE, THEIR RELATIONSHID TD DECEDENT AND THE DATE OF TRANSFER. ATTACH A COPY OF THE DEED FOR REAL ESTATE. DATE OF DEATH VALUE OF ASSET % OF DECD'S INTEREST EXCLUSION (IF APPLICABLE) TAXABLE VALUE i. The Richard C. Brobst Revocable Living Trust Agreement dated September 12, 2001 a 135 Yorkshire Drive, Lower Allen Township, Mechanicsburg, Cumberland Cty 146 000 00 100 146 000 00 , . , . b Citizens Bank Personal Money Market Account #620113-284-1 3,468.34 100 3,468.34 TOTAL (Also enter on Line 7, Recapitulation) ¢ I 149,468.34 If more space is needed, use additional sheets of paper of the same size. REV-1511 EX+ (10-09) ~,~ Pennsylvania !~ DEPARTMENT OF REVENUE INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE H FUNERAL EXPENSES AND ADMINISTRATIVE COSTS ESTATE OF FILE NUMBER Richard C. Brobst 194-16-9000 Decedent's debts must be reported on Schedule I. ITEM DESCRIPTION AMOUNT NUMBER A. FUNERAL EXPENSES: 1' Malpezzi Funeral Home, Funeral Services 5,059.77 Gate of Heaven Cemetery, Grave Opening 615.00 B. ADMINISTRATIVE COSTS: 1. Personal Representative Commissions: Name(s) of Personal Representative(s) Street Address City State ZIP Year(s) Commission Paid: 2. Attorney Fees: 3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation.) Claimant Street Address City _ _ ..State __ _ ZIP _ Relationship of Claimant to Decedent 4. Probate Fees: 5. Accountant Fees: 6. Tax Return Preparer Fees: ~• CR Consulting, Appraisal Fee, Real Estate s. Lesh Auction Company, Appraisal Fee, Household Contents s. Bonnie Miller, Tax Collector, Lower Allen Township, Real Estate Taxes due ~o. Montour Heating Oil Company, fuel oil i ~. Montour Heating Oil Company, service ~ 2. Pennsylvania Power & Light, Co, electric service TOTAL (Also enter on Line 9, Recapitulation) I $ If more space is needed, use additional sheets of paper of the same size. 325.00 125.00 1,020.98 900.00 176.00 331.93 10,060.81 Richard C. Brobst 194-16-9000 Schedule H -Funeral Expenses & Administrative Costs (continued) 14. Pennsylvania Water Company, service $ 335.83 15. H. T. Treadway, Inc., termite treatment $ 1,171.30 TOTAL: $ 4,386.04 REV-1512 EX+ (12-08) 1 SCHEDULE I Pennsylvania f..~,~, DEPARTMENT OF REVENUE DEBTS OF DECEDENT, INHERITANCE TAX RETURN MORTGAGE LIABILITIES & LIENS RESIDENT DECEDENT ESTATE OF Richard C. Brobst 194-16-9000 FILE NUMBER Report debts incurred by the decedent prior to death that remained unpaid at the date of death, including unreimbursed medical expenses. If more space is needed, insert additional sheets of the same size. REV-1513 EX+ (01-10) ~ Pennsylvania SCHEDULE DEPARTMENT OF REVENUE BENEFICIARIES INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF: FILE NUMBER: Richard C. Brobst RELATIONSHIP TO DECEDENT AMOUNT OR SHARE NUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY Do Not List Trustee(s) OF ESTATE I TAXABLE DISTRIBUTIONS [Include outright spousal distributions and transfers under Sec. 9116 (a) (1.2).] 1. Richard B. Brobst Son 20% 615 South 7th Street Lebanon, PA 17042 2. Kathleen C. Brobst Daughter 20% 342 E. North Street, Rear Carlisle, PA 17013 3. Timothy J. Brobst Son 20% 342 E. North Street Carlisle, PA 17013 SEE ATTACHED ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THROUGH 18 OF REV-1500 COVER SHEET, AS APPROPRIATE. II NON-TAXABLE DISTRIBUTIONS A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT TAKEN: 1. B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS: 1. TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET. I ~ If more space is needed, use additional sheets of paper of the same size. Richard C. Brobst 194-16-9000 Schedule J -Beneficiaries (continued) 4. Patricia M. Smith Daughter 20% 20 Ben Hogan Drive Etters, PA 17319 5. Robert J. Brobst Son 20% 122 Stonehedge Drive Carlisle, PA 17015 THE RICHARD C. BROBST REVOCABLE LIVING TRUST AGREEMENT DATED: ~ s~~ ~ BETWEEN: RICHARD C. BROBST, AS SETTLOR AND: RICHARD C. BROBST, AS TRUSTEE RICHARD C. BROBST, resident of the Commonwealth of Pennsylvania, County of Cumberland, does hereby establish a Trust upon the conditions and for the purposes hereafter set forth. ARTICLE ONE Section 1.01 Trust Estate Defined This Revocable Trust is formed to hold title to real and personal property for the benefit of the Settlor of this Trust and to provide for the orderly use and transfer of these assets upon the death of the Settlor. The "Trust Estate" is defined as all property transferred or conveyed to and received by the Trustee held pursuant to the terms of this instrument. The Trustee is required to hold, administer, and distribute this property as provided in this Trust Agreement: Section 1.02 Definitions As used in this Trust Agreement: The term "Settlor" shall mean RICHARD C. BROBST. The term "Descendant" shall mean the lawful issue of a deceased parent in the line of descent, but does not include the issue of any parent who is a descendant of the deceased person in question and who is living at the time in question. The terms "Child" and "Descendant" include any issue born to decedent, a child legally adopted by the decedent, and a posthumous child of a decedent. A posthumous child is to be considered as living at the time of his or her parent's death. 4. The term "Survives" or "Surviving", unless otherwise indicated herein, shall be construed to mean surviving the decedent for at least sixty (60) days. If the person referred to dies within sixty (60) days of the death of the decedent, the reference to him or her will be construed as if he or she had failed to survive the decedent; provided, however, that any such person will have, during such period, the right to the use and enjoyment as a life tenant of all property in which his or her interest will fail by reason of death during such period. REVOCABLE LNING TRUST AGREEMENT Page 1 The term "Issue" will include all natural and adopted children, if applicable, and descendants and those legally adopted into the line of descent. 6. The term "Per Stirpes" means strict per stirpes and does not mean per capita with representation. Beneficiaries entitled to take under a "per stirpes" clause will include both natural and adopted children and their descendants. The terms "Trust Assets" and "Trust Estate" include all assets of any trust created hereunder and income derived from such assets and all proceeds of any description derived from the sale, exchange, or other disposition of such assets. When required to give reasonable effect to the context in which used, pronouns in the masculine, feminine, or neuter gender include each other, and nouns and pronouns in the plural or singular number include each other. Section 1.03 Trustee Desi ng ation Settlor is hereby designated as Trustee. The term "Trustee" as used in this Trust Agreement shall refer to Settlor so long as he or she serves as Trustee, and/or to any successor Trustee who assumes the role of Trustee. These Trustees shall serve in the order as provided in Section 8.01 of this Trust Agreement. Section 1.04 Additions to Trust Properties The Trustee, at any time during the continuance of this Trust in his or her sole discretion after consideration of the possible tax consequences to all concerned, is authorized to receive into the Trust additions of cash and other properties from any source whatsoever, whether by gift, will, or otherwise. However, the Trustee shall accept all assets which any person or persons may give, devise, or bequeath by Last Will and Testament to this Trust, and shall accept all assets transferred to this Trust pursuant to the provisions of any other Trust document or documents. 2. In addition, any person or persons may designate this Trust as the Beneficiary, Primary or Contingent, of any death benefits to include insurance benefits, pension benefits, or other benefits. Until such benefits mature, the Trustee shall have no responsibility with respect to those benefits. Section 1.05 Appointment The Trustee of the Trust is directed to apportion receipts and expenditures of the types described below between principal and income as follows: Whenever the principal, or any part thereof, of the Trust property is invested in securities purchased at a premium or at a discount, any premium will be charged against principal and any discount will be credited to principal; 2. Any stock dividends and rights to purchase additional stock issued on securities held in trust will be treated as principal. All other dividends, except liquidating distributions, will be treated as income; and The amount of any applicable depletion allowance for federal income tax purposes will be treated as income. REVOCABLE LIVING TRUST AGREEMENT Page 2 Section 1.06 Discretionary Termination The Trustee may terminate any Trust when, in the opinion of the Trustee, the principal is reduced to such an extent that it is not in the best interest of the Beneficiary or Beneficiaries to continue the Trust. The judgment of the Trustee with respect to this decision to terminate will be final and not subject to judicial review. If the Trustee terminates a Trust according to this Section, the date the Trust terminates will be deemed the date fixed for termination of the Trust, and the Trustee will distribute the assets of the terminating Trust to the Beneficiary or Beneficiaries pursuant to this Agreement. Section 1.07 Amendment and Revocation At any time during the life of the Settlor, the Settlor may, by a duly executed instrument filed with the Trustee: Amend this Trust Agreement in any manner; and/or 2. Revoke this Trust Agreement in part or in whole. If the Trust Agreement is revoked in whole, the Trustee shall transfer title to all Trust property of every kind and description back into the individual name ofthe Settlor. The instrument of amendment or revocation shall be effective immediately upon its proper execution by the Settlor, but until a copy has been received by a Trustee, that Trustee shall not incur any liability or responsibility either (i) for failing to actin accordance with such instrument or (ii) for acting in accordance with the provisions of this Trust Agreement without regard to such instrument. Withdraw from the Trust Estate all or any part of the principal and accumulated income of the Trust to satisfy liabilities lawfully incurred in the administration of this Trust. Section 1.08 Revocation or Alteration by Settlor Alone The rights of revocation, withdrawal, alteration, and amendment reserved in this Article may only be exercised by the Settlor and may not be exercised by any other person, including an agent, a guardian, or a conservator. Section 1.09 Irrevocability Except as otherwise provided, on the death of Settlor, the designation of Beneficiaries of specific gifts in this Trust shall become irrevocable and not subject to amendment or modification. Section 1.10 Settlor Powers The Settlor shall be the Trustee unless and until he or she resigns in writing or is determined incompetent under the terms provided herein. The Settlor shall retain all absolute rights to discharge or replace any Successor Trustee so long as the Settlor is competent. REVOCABLE LIVING TRUST AGREEMENT Page 3 ARTICLE TWO Section 2.01 Trust Income During the life of the Settlor, the Trustee shall at least annually, unless otherwise directed by Settlor in writing, pay to or apply for the benefit of Settlor, all of the net income from the Trust Estate. Section 2.02 Protection of Settlor in Event of Incapacity During the life of the Settlor, should Settlor become incapacitated as defined in Section 2.03 below, the Trustee may, in the Trustee's absolute discretion, pay income and principal for the benefit of the incapacitated Settlor, and may pay to or apply for the benefit of that Settlor such sums from the net income and from the principal of the Estate of the Trustee, in the Trustee's absolute discretion, believes is necessary or advisable for the medical care, comfortable maintenance, and welfare of the Settlor. Section 2.03 Incapacity In the event that any Trustee or any Beneficiary hereunder comes into possession of any of the following: A jurisdictionally applicable court order holding the party to be legally incapacitated to act on his or her behalf and appointing a guardian or conservator to act for him or her; or Written certificates which are duly executed., witnessed, and acknowledged of two licensed physicians, each certifying that the physician has examined the person and has concluded that, by reason of accident, mental deterioration, or other cause, such person has become incapacitated and can no longer act rationally and prudently in his or her own financial best interest; or Evidence which such Trustee or Beneficiary deems to be credible and currently applicable that a person has disappeared, is unaccountably absent, or is being detained under duress, and that he or she is unable to effectively and prudently look after his or her own best interests, then in that event and under those circumstances: a. Such person is deemed to have become incapacitated, as that term is used in this Trust agreement; and b. Such incapacity is deemed to continue until such court order, certificates, and / or circumstances are inapplicable or have been revoked. A physician's certificate to the effect that the person is no longer incapacitated shall revoke a certificate declaring the person incapacitated. The certificate which revokes the earlier certificate maybe executed by either the original certifying physician or by two other licensed, board certified physicians. No Trustee shall be under any duty to institute any inquiry into a person's possible incapacity. The reasonable expense ofany such inquiry shall be paid from the Trust Assets. Section 2.04 Principal Invasion During the life of the Settlor, should the net income of assets contained in this Trust at the time of the Settlor's death be insufficient to provide for the care, maintenance, or support of the Settlor as herein defined, the Trustee may, in the Trustee's sole and absolute discretion, pay to or apply for the benefit of the Settlor REVOCABLE LIVING TRUST AGREEMENT Page 4 or any of their dependents, such amounts from the principal of the Trust Estate as the Trustee deems necessary or advisable for the care, maintenance, or support of the Settlor. Section 2.05 Residence If the Settlor's residence property is a part of the Trust, the Settlor shall have possession of and full management of the residence and shall have the right to occupy it free of rent. Any expenses arising from the maintenance of the property and from all taxes, liens, assessments, and insurance premiums, are to be paid from the Trust to the extent that assets are available for payment. It is the intent of the Grantor to retain all homestead rights available to him under the applicable state law. ARTICLE THREE Section 3.01 Death On the death of the Settlor, the Trustee shall distribute the principal of the Trust and any accrued or undistributed income from the principal of the Trust in such a manner and to such persons, including the Estate of the Creditors, as directed in this Trust Agreement. Section 3.02 Payment of Death Expenses On the death of the Settlor, the Trustee shall pay from the Trust Estate constituting the Settlor's last illness, funeral, burial and any inheritance, estate, or death taxes that may be due by reason of the Settlor's death, unless the Trustee in his or her absolute discretion determines that other adequate provisions have been made for the payment of such expenses and taxes. Section 3.03 Trust Income and Principal Distribution The Trustee shall apply and distribute the net income and principal of each of the shares of the resulting Trust Estate, after giving effect to the section of this Trust Agreement entitled "Special Directives" to the following Beneficiaries in the indicated fractional shares: RICHARD B. BROBST 1/5 KATHLEEN C. BROBST I/5 TIMOTHY J. BROBST 1/5 PATRICIA M. SMITH I/5 ROBERT J. BROBST I/5 If any of the above Beneficiaries, or any other Beneficiary, is under the age of 25 years when the distribution is to be made, the Trustee shall have authority to distribute the same, in whole or in part, to a custodian for the minor appointed under a Uniform Gifts or Transfers to Minors Act, or the Trustee may retain any such property and administer and distribute the same for the benefit of the minor, paying to or for the benefit of such minor so much of the income and principal of the retained property from time to time as the Trustee deems advisable for the health, education, support, and maintenance of the minor. When the person for whom the property is held attains the age of 25 years, the property shall thereupon be distributed to him or her free of trust unless otherwise stated REVOCABLE LIVING TRUST AGREEMENT Page 5 in this Agreement. If the minor should die before attaining the age of majority, the property shall then be paid and distributed to the estate of the minor. If all of the Settlor's Beneficiaries and their children should fail to survive the final distribution of the Trust Estate, all of the Trust Estate not disposed of as hereinabove provided shall be distributed as provided for in this Trust Agreement. Section 3.04 Principle of Representation If a Beneficiary of the Settlor should fail to survive to collect his or her share, that share shall pass to the surviving issue of that deceased Beneficiary per stirpes and with right of representation. ARTICLE FOUR Section 4.01 Non-Income Producing_Property During the life of the Settlor, the Trustee is authorized to retain in the Trust, for so long as the Trustee may deem advisable, any property received by the Trustee from the Settlor, whether or not such property is of the character permitted by law for the investment of Trust funds. Section 4.02 Trustee Powers The Trustee shall have all powers conferred upon a Trustee by law forthe orderly administration ofthe Trust Estate. If any property is distributed outright under the provision of this Trust Agreement to a person who is a minor, distribution may be made under the Pennsylvania Uniform Transfer to Minors Act ("PAUTMA"). The Trustee is further authorized to sign, deliver, and/or receive any documents necessary to carry out the powers contained within this Section. The Trustee of any trust created under this Trust Agreement (including any substitute or successor Trustee) will have and be subject to all of the powers, duties, and responsibilities granted or imposed by the Pennsylvania Consolidated Statutes (20 Pa. C.S. Section 101 et seq.) as such Statute may provide at the time of administration of the Trust, except to the extent that the same are inconsistent with the provisions of this Agreement. Section 4.03 Specific Powers of Trustee In addition, the Trustee will have the following specific powers: Trust Estate: The Trustee may leave invested any property coming into its hands hereunder in any form of investment even though the investment may not be ofthe character of investments permitted by law to trustees, without liability for loss or depreciation in value. The Trustee may sell, exchange, or otherwise dispose of and reinvest property which may at any time be a part of the Trust Estate upon such terms and conditions as the Trustee may deem advisable. The Trustee may invest and reinvest the Trust Assets from time to time in any property, real, personal, or mixed, including without limitation, securities of domestic and foreign corporations and investment trusts or companies, bonds, debentures, preferred stocks, common stocks, mortgages, mortgage participation, and interests in common trust funds, all with complete discretion to convert realty into personalty or personalty into realty or otherwise change the character of the Trust Estate, even though such REVOCABLE LIVING TRUST AGREEMENT Page 6 investment (by reason of its character, amount, proportion to the total Trust Estate, or otherwise) would not be considered appropriate for a fiduciary apart from this provision and even though such investment caused part or all of the total Trust Estate to be invested in investments of one type or of one business or company. Holding Property: The Trustee may hold property in the Trustee's name, as trustee, or in the name of a nominee without disclosing the Trust. Release of Power: If the Trustee deems it to be in the best interest of the Trust and its Beneficiaries, the Trustee, by written instrument signed by such Trustee, will have the power and authority to release, disclaim, or restrict the scope of any power or discretion granted in this Trust Agreement or implied by law. Agents, Employees: The Trustee may employ one or more agents to perform any act of administration, whether or not discretionary, including attorneys, auditors, investment managers, or others, as the Trustee shall deem necessary or advisable. The Trustee may compensate agents and other employees and may delegate to them any and all discretions and powers. Leases: The Trustee may lease any Trust Assets generally or for oil, gas, and mineral development, even though the lease term may extend beyond the term of the Trust of which the property is a part. The Trustee may enter into any covenants and agreements relating to the property so leased or concerning any improvements which may then or thereafter be erected on such property. 6. Common Funds: The Trustee may hold any of the Trust Assets in a common fund with property from other trust estates and may make investments jointly with any other trust, the property of which is included in the common fund. Securities: With respect to securities held in the Trust Estate, the Trustee may exercise all the rights, powers, and privileges of an owner, including but not limited to, the power to vote, give proxies, and to pay assessments and other sums deemed by the Trustee necessary for the protection of the Trust Estate. In addition, the Trustee may participate in voting trusts, foreclosures, reorganizations, consolidations, mergers, and liquidations, and in connection therewith, to deposit securities with and transfer title to any protective or other committee under such terms as the Trustee may deem advisable. In addition, the Trustee may exercise or sell stock subscription or conversion rights and may accept and retain as an investment any securities or other property received through the exercise of any of the foregoing powers, regardless of any limitations elsewhere in this instrument relative to investments by the Trustee. Purchases from Estate: The Trustee may purchase property of any kind from the Executor or Administrator of the Estates. 9. Lending: The Trustee may make loans, secured or unsecured, to the Executor or Administrator of the Estate, to any Beneficiary of the Trust, or to the Trustee. Further, the Trustee may use Trust Assets to guarantee obligations of any income Beneficiary of the Trust (unless such Beneficiary is serving as Trustee). 10. Distributions to or for Beneficiaries: The Trustee may make any distribution contemplated by this Trust Agreement (1) to the Beneficiary; (2) if the Beneficiary is under a legal disability or if the Trustee determines that the Beneficiary is unable to properly manage his or her affairs, to a person REVOCABLE LIVING TRUST AGREEMENT Page 7 furnishing support, maintenance, or education for the Beneficiary or with whom the Beneficiary is residing for expenditures on the Beneficiary's behalf; or (3) if the Beneficiary is a minor, to a trustee of an existing trust established exclusively for the benefit of such minor, whether created by this Trust Agreement or otherwise, or to a custodian for the Beneficiary, as selected by the Trustee, under the Pennsylvania Uniform Transfer to Minors Act. Alternatively, the Trustee may apply all or a part of the distribution for the Beneficiary's benefit. Any distribution under this paragraph will be a full discharge of the Trustee with respect thereto. On any partial or final distribution of the Trust Assets, the Trustee may apportion and allocate the assets of the Trust Estate in cash or in kind, or partly in cash and partly in kind, or in undivided interests in the manner deemed advisable at the discretion of the Trustee and to sell any property deemed necessary by the Trustee to make the distribution. The Trustee may distribute gifts of up to $10,000.00 per year per donee out of principal and/or interest. 11. Insurance: The Trustee may purchase new life insurance, pay the premiums on existing life insurance on the life of any Trust Beneficiary, purchase annuities (either commercial or private) from any corporation, trust, or individual, and may procure and pay the premiums on other insurance of the kinds, forms, and amounts deemed advisable by the Trustee to protect the Trustee and the Trust Estate. 12. Borrowing: The Trustee may borrow money from the Trust Estate and others. To secure the repayment thereof, the Trustee may mortgage, pledge, or otherwise encumber part or al l of the Trust Assets, and in connection with the acquisition of any property, the Trustee may assume a liability or may acquire property subject to a liability. 13. Repairs: The Trustee may make ordinary and extraordinary repairs and alterations to buildings or other Trust Assets. 14. Reserves: The Trustee may establish such reserves out of income for taxes, assessments, repair, and maintenance as the Trustee considers appropriate. 15. Continuation of Business: The Trustee may continue any business or businesses in which the Trust has an interest at the time of the Settlor's death for so long as the Trustee may, in its sole discretion, consider necessary or desirable, whether or not the business is conducted by the Settlor at the time of his death individually, as a partnership, or as a corporation wholly owned or controlled by him, with full authority to sell, settle, and discontinue any of them when and upon such terms and conditions as the Trustee may, in its sole discretion, consider necessary or desirable. 16. Retain Property for Personal Use: The Trustee may retain a residence or other property for the personal use of a Beneficiary and to allow a Beneficiary to use or occupy the retained property free of rent and maintenance expenses. 17. Dealings with Third Parties: The Trustee may deal with any person or entity regardless of relationship or identity of any Trustee to or with that person or entity. The Trustee may hold or invest any part of or all of the Trust Estate in common or undivided interests with that person or entity. 18. Partitions, Divisions, Distributions: The Trustee will have the power to make all partitions, divisions, and distributions contemplated by this Trust Agreement. Any partitions, divisions, or other distributions may be made in cash, in kind, or partly in cash and partly in kind, in any manner REVOCABLE LIVING TRUST AGREEMENT Page 8 that the Trustee deems appropriate (including composing shares differently). The Trustee may determine the value of any property, which valuation will be binding on all Beneficiaries. No adjustments are required to compensate for any partitions, divisions, or distributions having unequal consequences to the Beneficiaries. 19. Claims, Controversies: The Trustee may maintain and defend any claim or controversy by or against the Trust without the joinder or consent of any Beneficiary. The Trustee may commence or defend at the expense of the Trust any litigation with respect to the Trust or any property of the Trust Estate as the Trustee may deem advisable. The Trustee may employ, for reasonable compensation, such counsel as the Trustee shall deem advisable for that purpose. 20. Merger of Trusts: If at any time the Trustee of any trust created hereunder shall also be acting as trustee of any other trust created by trust instrument or by trust declaration for the benefit of the same beneficiary or beneficiaries and upon substantially the same terms and conditions, the Trustee is authorized and empowered, if in the Trustee's discretion such action is in the best interest of the Beneficiary or Beneficiaries, to transfer and merge all ofthe assets then held under such trust created pursuant to this Trust Agreement to and with such other trust and thereupon to terminate the trust created pursuant to this Trust Agreement. The Trustee is further authorized to accept the assets of any other trust which may be transferred to any trust created hereunder and to administer and distribute such assets and properties so transferred in accordance with the provisions of this Agreement. 21. Termination of Small Trust: Any corporate Trustee which is serving as the sole Trustee of any Trust or any Share thereof may at any time terminate such Trust or Share if, in the Trustee's sole judgment, the continued management of such Trust or Share is no longer economical because of the small size of such Trust or Share and if such action will be deemed to be in the best interests of the Beneficiary or Beneficiaries. In case of such termination, the Trustee will distribute forthwith the share of the Trust Estate so terminated to the income Beneficiary, per stirpes. Upon such distribution, such Trust or Share will terminate and the Trustee will not be liable or responsible to any person or persons whomsoever for its action. The Trustee will not be liable for failing or refusing at any time to terminate any Trust or a Share thereof as authorized by this paragraph. 22. Power to Determine Income and Principal: Dividends payable in stock of the issuing corporation, stock splits, and capital gains will be treated as principal. Except as herein otherwise specifically provided, the Trustee will have full power and authority to determine the manner in which expenses are to be borne and in which receipts are to be credited as between principal and income. The Trustee has the power to determine what will constitute principal or income and may withhold from income such reserves for depreciation or depletion as the Trustee may deem fair and equitable. In determining such matters, the Trustee may give consideration to the provisions of the Pennsylvania Statutes (or its successor statutes) relating to such matters, but it will not be bound by such provisions. 23. Generation-Skipping Taxes and Payment: If the Trustee considers any distribution or termination of an interest or power hereunder as a distribution or termination subject to ageneration-skipping tax, the Trustee is authorized: To augment any taxable distribution by an amount which the Trustee estimates to be sufficient to pay such tax and charge the same to the particular trust to which the tax related without adjustment of the relative interests of the Beneficiaries; REVOCABLE LIVING TRUST AGREEMENT Page 9 To pay such tax, in the case of a taxable termination, from the particular trust to which the tax relates without adjustment of the relative interests of the Beneficiaries. If such tax is imposed in part by reason of the Trust Assets, the Trustee will pay only the portion of such tax attributable to the taxable termination hereunder taking into consideration deductions, exemptions, credits, and other factors which the Trustee deems advisable; and To postpone final termination of any particular trust and to withhold any portion or all of the Trust Estate until the Trustee is satisfied that the Trustee no longer has any liability to pay any generation-skipping tax with reference to such trust or its termination. Section 4.04 Special Provision for S Corporation Stock Notwithstanding what is otherwise provided in this Trust Agreement, if at any time the Trust contains any stock of a corporation which elects or has elected treatment as an "S Corporation" as defined by Section 1361(a)(1) of the Internal Revenue Code (or any corresponding successor statute), such stock will be segregated from the other assets of such and treated as a separate trust. The Trustee will further divide the separate trust into shares for each Beneficiary and such shares will be distributed outright or held in trust as herein provided. In addition, all other provisions of this Trust Agreement will apply to each share held in trust (and constituting a separate trust) except that the Trustee will distribute all of the income from each separate trust to its Beneficiary in convenient installments at least annually. It is the Settlor's intent that each separate trust will be recognized as a "Qualified Subchapter S Trust" ("QSST") under Section 1361(d)(2} of the Internal Revenue Code (or any corresponding successor statute). Notwithstanding any provisions of this Trust Agreement to the contrary, the Trustee's powers and discretions with respect to the administration of each separate trust (including methods of accounting, bookkeeping, making distributions, and characterizing receipts and expenses) will not be exercised or exercisable except in a manner consistent with allowing each separate trust to be treated as a QSST as above described. ARTICLE FNE Section 5.01 Coordination with Settlor's Probate Estate At any time during the continuance of this Trust, including subsequent to the death of Settlor, the Trustees may, in their sole and uncontrolled discretion, distribute to the deceased Settlor's Probate Estate cash and/or other property as a Beneficiary of the Trust. 2. All other provisions to the contrary notwithstanding, under no circumstances shall any restricted proceeds, as hereinafter defined, be either directly or indirectly: (i) distributed to or for the benefit ofthe Settlor's Executors or the Settlor's Probate Estate; or (ii) used to pay any other obligations of the Settlor's Estate. The term "Restricted Proceeds" means: a. All qualified plans, individual retirement accounts, or similar benefits which are received or receivable by any Trustee hereunder, and which are paid solely to a Beneficiary other than the Executor of the Settlor's Gross Estate for Federal Estate Tax purposes; and All proceeds of insurance on the Settlor's life which, if paid to a Beneficiary other than the Settlor's Estate, would be exempt from inheritance or similar death taxes under applicable state death laws. REVOCABLE LIVING TRUST AGREEMENT Page 10 Section 5.02 Direction to Minimize Taxes In the administration ofthe Trust hereunder, its Fiduciaries shall exercise all available tax related elections, options, and choices in such a manner as they, in their sole but reasonable judgment (where appropriate, receiving advice of tax counsel), believe will achieve the overall minimum in total combined present and reasonably anticipated future administrative expenses and taxes of all kinds. This applies not only to said Trust, but also to its Beneficiaries, to the other Trusts hereunder and their Beneficiaries, and to the Settlor's Probate Estate. Without limitation on the generality of the foregoing direction (which shall to that extent supercede the usual fiduciary duty of impartiality), such Fiduciaries shall not be accountable to any person interested in this Trust or to Settlor's Estate for the manner in which they shall carry out this direction to minimize overall taxes and expenses (including any decision they may make not to incur the expense of a detailed analysis of alternative choices). Even though their decisions in this regard may result in increased taxes or decreased distributions to the Trust, to the Estate, or to one or more Beneficiaries, the Fiduciaries shall not be obligated for compensation readjustments or reimbursements which arise by reason ofthe manner in which the Fiduciaries carry out this direction. Section 5.03 Judgment and Discretion of Trustee In the absence of proof of bad faith, all questions of construction or interpretation of any trusts created by this Trust Agreement will be finally and conclusively determined solely by the Trustee, according to the Trustee's best judgment and without recourse to any court. Each determination by the Trustee is binding on the Beneficiaries and prospective Beneficiaries hereunder, both in being and unborn, as well as all other persons, firms, or corporations. The Trustee, when exercising any discretionary power relating to the distribution or accumulation ofprincipal or income or to the termination of any trust, will be responsible only for lack of good faith in the exercise of such power. Each determination may be relied upon to the same extent as if it were a final and binding judicial determination. In the event of a conflict between the provisions of this Trust Agreement and those of the Pennsylvania Statutes, the provisions of this Agreement will control. ARTICLE SIX Section 6.01 Resolution of Conflict Any controversy between the Trustee or Trustees and any other Trustee or Trustees, or between any other parties to this Trust, including Beneficiaries, involving the construction or application of any of the terms, provisions, or conditions of this Trust shall, on the written request of either or any disagreeing party served on the other or others, shall be submitted to arbitration. The parties to such arbitration shall each appoint one person to hear and determine the dispute and, ifthey are unable to agree, then the two persons so chosen shall select a third impartial arbitrator whose decision shall be final and conclusive upon both parties. The cost of arbitration shall be borne by the losing party or in such proportion as the arbitrator(s) shall decide. Such arbitration shall comply with the commercial arbitration rules ofthe American Arbitration Association, 140 West S 1st Street, New York, NY 10200. REVOCABLE LIVING TRUST AGREEMENT Page 11 Section 6.02 Incontestability The beneficial provisions of this Trust Agreement are intended to be in lieu of any other rights, claims, or interests of whatsoever nature, whether statutory or otherwise, except bona fide pre-death debts, which any Beneficiary hereunder may have in Settlor's Estate or in the properties in trust hereunder. Accordingly, if any Beneficiary hereunder asserts any claim (except a legally enforceable debt); statutory election, or other right or interest against or in Settlor's Estate, or any properties of this Trust, other than pursuant to the express terms hereof, or directly or indirectly contests, disputes, or calls into question, before any court, the validity of this Trust Agreement, then: Such Beneficiary shall thereby absolutely forfeit any and all beneficial interests of whatsoever kind and nature which such Beneficiary or his or her heirs might otherwise have under this Trust Agreement and the interests of the other Beneficiaries hereunder shall thereupon be appropriately and proportionately increased; and All of the provisions of this Trust Agreement, to the extent that they confer any benefits, powers, or rights whatsoever upon such claiming, electing, or contesting Beneficiary, shall thereupon become absolutely void; and Such claiming, electing, or contesting Beneficiary, if then acting as a trustee hereunder, shall automatically cease to be a Trustee and shall thereafter be ineligible either to select, remove, or become a Trustee hereunder. Section 6.03 Specific Omissions Any and all persons and entities, except those persons and entities specifically named herein, have been intentionally omitted from this Trust Agreement. If any person or entity shall successfully challenge any term or condition of this Trust Agreement, then, to that person or entity shall be given the sum of one dollar ($1.00) in lieu and in place of any other benefit, grant, or interest which that person or interest may have in the Trust Estate. Section 6.04 Benefits Confidential The Settlor further declare that it is his desire and intent that the provisions of this Trust Agreement are to remain confidential as to all parties. The Settlor directs that only the information concerning the benefits paid to any particular Beneficiary shall be revealed to such individual and that no individual shall have a right to information concerning the benefits being paid to any other Beneficiary. ARTICLE SEVEN Section 7.01 Distribution in Kind or in Cash On any division of the assets of the Trust Estate in to shares or partial shares, and on any final or partial distribution of the assets of the Trust Estate, the Trustee, at his or her absolute discretion, may divide and distribute undivided interests of such assets on a pro rata ornon-pro rata basis, or may sell any part of or all of such assets and may make divisions or distributions in cash or partly in cash and partly in kind. The decision of the Trustee, either prior to or on any division or distribution of such assets, as to what constitutes REVOCABLE LIVING TRUST AGREEMENT Page 12 a proper division of such assets of the Trust Estate, shall be binding on all persons interested in any trust provided for in this Trust Agreement. Section 7.02 ~endthrift Provision Neither the principal nor the income of the trust shall be liable for the debts of a Beneficiary. Except as otherwise expressly provided in this Agreement, no Beneficiary of any trust shall have any right, power, or authority to alienate, encumber, or hypothecate his or her interest in the principal or income of this Trust in any manner, nor shall the interests of any Beneficiary be subject to the claims of his or her creditors or liable to attachment, execution, or other process of law. The limitations herein shall not restrict the exercise of any power of appointment or the right to disclaim. Section 7.03 Definition of Children The terms "Child" and "Children" as used in this Agreement mean the lawful issue of a Settlor. This definition also includes children legally adopted by a Settlor. Section 7.04 Handicapped Beneficiaries Any Beneficiary who is determined by a court of competent jurisdiction to be incompetent shall not have any discretionary rights of a Beneficiary with respect to this Trust, or to their share or portion thereof. The Trustee shall hold and maintain such incompetent Beneficiary's share of the Trust estate and shall, in the Trustee's sole discretion, provide for such Beneficiary as that Trustee would provide for a minor. Notwithstanding the foregoing, any Beneficiary who is diagnosed for the purposes of governmental benefits (as hereinafter delineated) as being not competent or as being disabled, and who shall be entitled to governmental support and benefits by reason of such incompetency or disability, shall cease to be a Beneficiary of this Trust. Likewise, they shall cease to be a Beneficiary if any share or portion of the principal or income of the Trust shall become subject to the claims of any governmental agency for costs or benefits, fees, or charges. The portion of the Trust Estate which, absent the provisions of this section, would have been the share of such incompetent or handicapped person shall be retained in trust for as long as that individual lives. The Trustee, at his or her sole discretion, shall utilize such funds for the maintenance of that individual. If such individual recovers from his or her incompetency or disability and is no longer eligible for aid from any governmental agency, including costs or benefits, fees, or charges, such individual shall be reinstated as a Beneficiary after 60 days from such recovery and the allocation and distribution provisions as stated herein shall apply to that portion of the Trust Estate which is held by the Trustee subject to the foregoing provisions of this section. If said handicapped Beneficiary is no longer living and shall leave children then living, the deceased child's share shall pass to those children per stirpes. If there are no children, the share shall be allocated proportionately among the remaining Beneficiaries. REVOCABLE LIVING TRUST AGREEMENT Page 13 ARTICLE EIGHT Section 8.01 Trustees Al l Trustees are to serve without bond. The following will act as Trustees of any Trusts created by this Trust Agreement, in the following order of succession: First: The undersigned, RICHARD C. BROBST Second: At the death or incapacity of RICHARD C. BROBST, ROBERT J. BROBST shall serve as First Successor Trustee. Third: TIMOTHY J. BROBST shall serve as Second Successor Trustee. Fourth: KATHLEEN C. BROBST shall serve as Third Successor Trustee. Fifth: PATRICIA M. SMITH shall serve as Fourth Successor Trustee. Last: A Trustee chosen by the majority of Beneficiaries, with a parent or legal guardian voting for minor Beneficiaries; provided, however, that the children of any deceased Beneficiary shall collectively have only one vote. Section 8.02 Allocation and Distribution of The Trust Assets The Trustees shall allocate, hold, administer, and distribute the Trust Assets as hereinafter provided: Upon the death of the Settlor, the Trustee shall make any separate distributions the Trust Assets in the manner hereinafter prescribed. Section 8.03 Personal Property Distribution Notwithstanding any provision of this Trust Agreement to the contrary, the Trustee must abide by any memorandum by the Settlor, particularly that contained in the section entitled "Special Directives" incorporated into this Trust Instrument, directing the disposition of Trust Assets of every kind including, but not limited to, furniture, appliances, furnishings, pictures, china, silverware, glass, books, jewelry, wearing apparel, and all policies of fire, burglary, property damage, and other insurance on or in connection with the use of property. Otherwise, any personal and household effects of the Settlor shall be distributed with the remaining assets of the Trust Estate. Section 8.04 Liabilityof Trustee The Trustee will not be responsible or liable for any loss which may occur by reason of depreciation in value of the properties at any time belonging to the Trust Estate nor for any other loss which may occur, except that the Trustee will be liable for each Trustee's own negligence, neglect, default, or willful wrong. The Trustee will not be liable or responsible for the acts, omissions, or defaults of any agent or other person to whom duties may be properly delegated hereunder (except officers or regular employees of the Trustee) if such agent or person was appointed with due care. The Trustee may receive reimbursement from the Trust Estate for any liability, whether in contract or in tort, incurred in the administration of the Trust Estate in REVOCABLE LIVING TRUST AGREEMENT Page 14 accordance with the provisions hereof, and the Trustee may contract in such form that such Trustee will be exempt from such personal liability and that such liability will be limited to the Trust Assets. Section 8.05 Successor Trustees Any Successor Trustee shall have all the power, rights, discretion, and obligations conferred on a Trustee by this Trust Agreement. All rights, titles, and interest in the property of the Trust shall immediately vest in the successor Trustee at the time of appointment. The prior Trustee shall, without warranty, transfer to the Successor Trustee the existing Trust property. No Successor Trustee shall be under any duty to examine, verify, question, or audit the books, records, accounts, or transaction of any preceding Trustee; and no Successor Trustee shall be liable for any loss or expense from or occasioned by anything done or neglected to be done by any predecessor Trustee. A Successor Trustee shall be liable only for his or her own acts and defaults. ARTICLE NINE Section 9.01 Perpetuities Savings Clause Notwithstanding any other provision ofthis instrument, the Trusts created hereunder shall terminate not later than twenty-one (21) years after the death of the last survivor of the Settlor and any other Beneficiary or Beneficiaries named or defined in this Trust living on the date of the death of the Settlor. The Trustee shall distribute remaining Trust principal and all accrued or undistributed net income hereunder to the Beneficiary or Beneficiaries. If there is more than one Beneficiary, the distribution shall be in the proportion in which they are Beneficiaries; if no proportion is designated, then the distribution shall be in equal shares to such Beneficiaries. ARTICLE TEN Section 10.01 Governing Law It is not intended that the laws of only one particular state shall necessarily govern all questions pertaining to all of the Trust hereunder. The validity of the Trust hereunder, as well as the validity of the particular provisions of that Trust, shall be governed by the laws of the state which has sufficient connection with the Trust to support such validity. 2. The meaning and effect of the terms ofthis Trust Agreement shall be governed by the laws of the Commonwealth of Pennsylvania. The administration of this Trust shall be governed by the laws of the state in which the principle office of the Trustee then having custody of the Trust's principal assets and records is located. The foregoing shall apply even though the situs of some Trust Assets or the home of the Settlor, a Trustee, or a Beneficiary may at some time or times be elsewhere. REVOCABLE LIVING TRUST AGREEMENT Page I S Section 10.02 Invalidit o~Y Provision If a court finds that any provision of this Trust Agreement is void, invalid, or unenforceable, the remaining provisions of this Agreement will continue to be fully effective. Section 10.03 Headings The use of headings in connection with the various articles and sections of this Trust Agreement is solely for convenience and the headings are to be given no meaning or significance whatsoever in construing the terms and provisions of this Agreement. Section 10.04 Internal Revenue Code Terminology As used herein, the words "Gross Estate," "Adjusted Gross Estate," "Taxable Estate," "Unified Credit," "State Death Tax Credit," "Maximum Marital Deduction," "Marital Deduction," and any other word or words which from the context in which it or they are used refer to the Internal Revenue Code shall be assigned the same meaning as such words have for the purposes of applying the Internal Revenue Code to a deceased Settlor's Estate. Reference to sections of the Internal Revenue Code and to the Internal Revenue Code shall refer to the Internal Revenue Code amended to the date of such Settlor's death. REVOCABLE LIVING TRUST AGREEMENT Page 16 SPECIAL DIRECTIVES OF RICHARD C. BROBST I, RICHARD C. BROBST, a resident ofthe County ofCumberland, Commonwealth ofPennsylvania, being of lawful age, and of sound and disposing mind and memory, and not acting under duress, fraud, or undue influence, hereby make, publish and declare this to be my Special Directive, and I incorporate THE RICHARD C. BROBST REVOCABLE LIVING TRUST AGREEMENT. FIRST The nah-ral objects of my affection are: My Children - RICHARD B. BROBST KATHLEEN C. BROBST TIMOTHY J. BROBST PATRICIA M. SMITH ROBERT J. BROBST SECOND I direct that all estate and inheritance taxes payable as a result of my death, not limited to taxes assessed on property, shall be paid out of the residue of my Estate, and shall not be deducted or collected from any League, Devisee, or Beneficiary hereunder. THIRD In the event any of my named Beneficiaries should predecease me, all of that person's share of the Trust Estate is to be divided equally among that person's issue per stirpes unless otherwise stated in these directives, and held in trust until those children reach the age of 21 years. If any such Beneficiary should predecease me and not have any children, then that Beneficiary's share of this Trust Estate shall be divided equally among the remaining Beneficiaries. FOURTH I direct that, before any distribution of the assets of the Trust Estate to the named Beneficiaries, certain specific distributions, if any, shall be made from the assets as set forth on the list attached hereto and marked "Exhibit A." FIFTH 1 direct that any outstanding debts and/or loans owed to me by any Beneficiary shat l be forgiven upon my death and shall be deemed as having not existed. REVOCABLE LIVING TRUST AGREEMENT Page 17 DATED to be effective this _~ day of ~` ~' SETTLOR: .~ ,{ ~~ t HARD C. BROBST ACCEPTED BY TRUSTEE: ~; /~ ~I ~.~ ~,~ i/, RICHARD C. BROBST COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND This instrument was acknowledged before me on the date herein set forth by RICHARD C. BROBST as Settlor and Trustee to certify which witness my hand and seal of office. r,, G ~,~ i Notary Public, Co mo ealth of Pennsylvania REVOCABLE LIVING TRUST AGREEMENT Page 18 LAST WILL AND TESTAMENT (Pour-Over Will) OF RICHARD C. BROBST IDENTITY I, RICHARD C. BROBST, residing in the County of Cumberland, Commonwealth of Pennsylvania, being of sound mind and memory, and not acting under duress or undue influence of any person whomsoever, hereby declare this to be my Last Will and Testament, and I do hereby revoke all other former Wills and Codicils to Wills heretofore made by me. My Social Security Number is 194-16-9000. I have the following children: RICHARD B. BROBST born January 31, 1951 and currently residing in Orwigsburg, PA; KATHLEEN C. BROBST born September 25, 1953 and currently residing in Carlisle, PA; TIMOTHY J. BROBST born January 29, 1954 and currently residing in Carlisle, PA; PATRICIA M. SMITH born November 29, 1955 and currently residing in Etters, PA; and ROBERT J. BROBST born December 5, 1957 and currently living in Chambersburg, PA. DEBTS, TAXES AND ADMINISTRATION EXPENSES 1 have provided for the payment of all my debts, expenses of administration of property wherever situated passing under this Will or otherwise, and estate, inheritance, transfer, and succession taxes, other than any tax on ageneration-skipping transfer that is not a liability of my Estate (including interest and penalties, if any) that become due by reason of my death, under THE RICHARD C. BROBST REVOCABLE LIVING TRUST executed on even date herewith (the "Revocable Trust"). If the Revocable Trust assets should be insufficient for these purposes, my Executor shall pay any unpaid items from the residue of my Estate passing under this Will, without any apportionment or reimbursement. In the alternative, my Executor may demand in a writing addressed to the Trustee of the Trust an amount necessary to pay all or part of these items, plus claims, pecuniary legacies, and family allowances by court order. PERSONAL AND HOUSEHOLD EFFECTS It is my intent that all my personal and household effects were transferred to the Revocable Trust as a result of the Declaration of Intent signed this date. If there are any questions regarding the ownership or disposition ofthese assets, it is my desire that such assets pour into the Revocable Trust, signed by me this date in accordance with the provisions of the section titled "Residue of Estate." RESIDUE OF ESTATE I give, devise and bequeath all the rest, residue and remainder of my property of every kind and description (including lapsed legacies and devices), wherever situated and whether acquired before or after the execution of this Will, to the Trustee under that certain Trust executed by me on the same date of the execution of this Will. The'Trustee shall add the property bequeathed and devised by this item to the corpus of the above described Trust and shall hold, administer and distribute said property in accordance with the provisions of the said Trust, including any amendments thereto made before my death. l .~,,,~ POUR-OVER WILLS `r ~' G ' `'~ Page 1 (Testator) If for any reason the said Trust shall not be in existence at the time of death, or if for any reason a court of competent jurisdiction shall declare the foregoing testamentary disposition to the Trustee under said Trust as it exists at the time of my death to be invalid, then I give all of my Estate including the residue and remainder thereof to that person who would have been the Trustee under the Trust, as Trustee, and to their substitutes and successors under the Trust, described herein above, to be held, managed, invested, reinvested and distributed by the Trustee upon the terms and conditions pertaining to the period beginning with the date of my death as are constituted in the Trust as at present constituted giving effect to amendments, if any, hereafter made and for that purpose I do hereby incorporate such Trust by reference into this my Will. EXECUTOR I hereby nominate and appoint ROBERT J. BROBST to serve without bond as my Executor of this my Last Will and Testament. In the event the first named Executor shall predecease me or is unable or unwilling to act as my Executor for any reasons whatsoever, then and in that event, I hereby nominate and appoint TIMOTHY J. BROBST to serve without bond as my Independent Executor. In the event the second named Executor shall predecease me or is unable or unwilling to act as my Executor for any reasons whatsoever, then and in that event, I hereby nominate and appoint KATHLEEN C. BROBST to serve without bond as my Independent Executor. In the event the third named Executor shall predecease me or is unable or unwilling to act as my Executor for any reasons whatsoever, then and in that event, I hereby nominate and appoint PATRICIA M. SMITH to serve without bond as my Independent Executor. Whenever the word "Executor" or any modifying or substituted pronoun therefore is used in this my Will, such words and respective pronouns shall be held and taken to include both the singular and the plural, the masculine, feminine and neuter gender thereof, and shall apply equally to the Executor named herein and to any successor to substitute Executor acting hereunder, and such successor or substitute Executor shall possess all the rights, powers, duties, authority, and responsibility conferred upon the Executor originally named herein. EXECUTOR POWERS By way of Illustration and not of limitation and in addition to any inherent, implied or statutory powers granted to executors generally, my Executor is specifically authorized and empowered with respect to any property, real or personal, at any time held under any provision of this my Wili: to allot, allocate between principal and income, assign, borrow, buy, care for, collect, compromise claims, contract with respect to, continue any business ofmine, convert, deal with, dispose of, enter into, exchange, hold, improve, incorporate any business ofmine, invest, lease, manage, mortgage, grant and exercise options with respect to, take possession of, pledge, receive, release, repair, sell, sue for, make distributions in cash or in kind of partly in each without regard to the income tax basis of such asset and in general, exercise all of the powers in the management of my Estate which any individual could exercise in the management of similar property owned in its own right upon such terms and conditions as to my Executor may seem best, and execute and deliver any and all instruments and do all acts which my Executor may deem proper or necessary to carry ~~ r ~:~ F ' .f~ ,'r -'-~ POUR-OVER WILLS :~'L't, i' /. Page 2 (Testator) out the purpose ofthis my Will, without being limited in any way by the specific grants or power made, and without the necessity of a court order. My Executor shall have absolute discretion, but shall not be required, to make adjustments in the rights of any Beneficiaries, or among the principal and income accounts to compensate for the consequences of any tax decision or election, or of any investment or administrative decision, that my executor believes has had the effect, directly or indirectly, of preferring one Beneficiary or group of Beneficiaries over others. In determining the Federal Estate and Income Tax liabilities of my Estate, my Executor shall have discretion to select the valuation date and to determine whether any or all of the allowable administration expenses in my Estate shall be used as Federal Estate Tax deductions or as Federal Income Tax deductions. SPECIFIC OMISSIONS I have intentionally omitted any and all persons and entities from this, my Last W ill and Testament, except those persons and entities specifically named herein. If any person or entity shall challenge any term or condition ofthis Will, or of the Living Trust to which I have made reference in the sections "Household and Personal Effects" and "Residue of Estate," then, to that person or entity, I give and bequeath the sum of only one dollar ($1.00) only in lieu and in place of any other benefit, grant, bequest or interest which that person or interest may have in my Estate or the Living Trust and its Estate. SIMULTANEOUS DEATH If any other Beneficiary should not survive me for sixty (60) days, then it shall be conclusively presumed for the purpose of this my Will that said Beneficiary predeceased me. n ,r ~, t~ , ..~' _~ -- .,% ~~.~~...~-~ ~ __ , ,,r-,,. f ,~~ CHARD C. BROBST Testator This instrument consists of 5 typewritten pages, including the Attestation Clause, Self-Proving Clause, signature of Witnesses, and acknowledgment of officer. I have signed my name at the bottom of each of e preceding pages. This instrument is being signed by me on this ~~.t~ day of ,~~ t . C-'~~ ~.~ POUR-OVER WILLS r Page 3 (Testator) ATTESTATION CLAUSE The Testator whose name appears above declared to us, the undersigned, that the foregoing instrument was his Last Will and Testament, and he requested us to act as witnesses to such instrument and to his signature thereon. The Testator thereupon signed such instrument in our presence. At the Testator's request, the undersigned then subscribed our names to the instrument in our own handwriting in the presence of the Testator. The undersigned hereby declare, in the presence of each of us, that we believe the Testator to be of sound and disposing mind and memory. Signed by us on the same day and year as this Last Will and Testament was signed by the Testator. WITNESSES: (~ `~ J~\ ~~ ADDRESSES: ~._ . (Pilinte}d Name of Witness) 1 f s-, s (Printed I'tlame of Witness) C,~~ - t ~`; POUR-OVER WILLS Page 4 ~~ ~ ~: (Testator) COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND SELF-PROVING CLAUSE BEFORE ME, the undersigned authority, on this day personally appeared RICHARD C. BROBST, ~~;~~' ~ , }}~ ~t ~ ~ and ~ - ,known to me to be the Testator and the witnesses, respectively, whose n ` es are subscribed to the foregoing instrument in their respective capacities, and all of them being by me duly sworn, RICHARD C. BROBST, Testator, declared tome and to the witnesses, in my presence, that the instrument is his W ill and that he had willingly made and executed it as his free act and deed for the purposes therein expressed; and the Witnesses, each on his or her oath, stated to me in the presence and hearing of the Testator, that the Testator had declared to them that the instrument is his Will and that he executed the same as such and wanted each of them to sign it as a witness; and upon their oaths, each witness stated further that he did the same as a witness in the presence of the Testator, and at his request and that he was at that time eighteen (18) years of age or over and was of sound mind, and that each of the witnesses was then at least fourteen (14) years of age. f _ `_ F ~f.:~,.. try p. ~«-L"0 :...... S,l l.`~ „ ~ i. CHARD C. BROBST Testator Wi ess~~ (Pr nted Name of Witness) ~` 4-f'~ ~ l ~ /.: ' ~.l It S ~ /~ / J \/ ,( / (Printed Name of"Witness SUBSCRIBED AND ACKNOWLEDGED before me by RICHARD C. BROBST, Testator, and subscribed and sworn to before me by (h ~.;~ L~(~_rf =~ ~~__ and ~ ~,~i, ~'ltt~ ,witnesses, this the j ~-~- day of ~~ -~Y,n ~~-- , Notary Publj~~~monwealth of Penns~nia p i~ L~z ~E i f~i.1~6_I~i ~.!i lJlr tl~ ~:Ys^)i%n Flt C~(y~.1','^ sty .~ 7~~a F4 kk~ r dit Y1~~( irE.t°kF ~'~U'ti E r 4t~y" ( ~`~`~~ ~ ~ yip { fz } ~~inv ~ ~~;(4,,~ G ~rD POUR-OVER WILLS ~~ ` L~~ ~ ___ Pa e 5 (Testator) g CR consulting & Appraisal Services File No. Brobst Pa #1 R ESIDENTIAL APPRAISAL SUMMARY REPORT mk Fle No.: Brobst Property Address: 135 Yorkshire Dr City: Mechanicsbu State: PA Zip Code: 17055-3533 +,,. Cou :Cumberland Le al Descri lion: Deed Reference 249-3965 v ~ Assessor's Parcel #: 13240793079 Tau Year: 2010 R.E. Taxes: $ 1,960 Special Assessments: $ Na Borrower rf ap licable : Na Current Owner of Record: Brobst Trust Occupant ^ Owner ^ Tenant ®Vacant ^ Manufactured Housing Project Type: ^ PUD ^ Condominium ^ Cooperative ^ Other describe HOA: $ ^ per year ^ per month Market Area Name: Windsor Par Lower Allen Townshi Map Reference: 3245A Census Tract: 0111 00 . The u se of this a raisal is to deveb an o nion of Market Vabe as defined , or ^ other a of value describe ~ This report refbcts ttre folbvring value 'rf not Current, see comments : ®Currerrf the Inspection Date is the Effective Date ^ Prospective ^ Retros ctive A W pproaches developed for this a raisal: Sales Comparison Approach ^ Cost Approach ^ Income Approach See Reconciliation Comments and Scope of Work P ~ ro Ri hts A raised: Fee Si le ^ Leasehdd ^ Leased Fee ^ Other describe ~ Irr6ended Use: The intended use of this appraisal report is to devebp an opinion of value for estate purposes. No other use is intended or implied a~ ~ Intended Users by name or type : Robert Brobst. No other user is intended or im lied. Client: Brobst Address: 122 Stonehed a Dr, Carlisle PA 17015 Appraiser: Matt Kenned , PA State Cert Res raiser Address: 3920 M arket St, Cam Hill, PA 17011 Location: Urban Suburban Rural Predominant One-Unit Housing Present Land Use Change in Land Use Built up: ^ Over 75% ®25-75% ^ Under 25% Occupancy P ~ RICE AGE One-Unit 70 % ®Not Likely Growth rate: ^ Rapid ®Stable ^ Slow ®Owner $(000) (yrs) 2-4 Unit 5 % ^ Likely * ^ In Process ~ Property values: ^ Increasing ®Stable ^ Declining ^ Tenant 25 Low New Mutti-Unit % * To: Demand/suppty: ^ Shortage ®In Balance ^ Over Suppty ®Vacant (0-5%) 385 Hi h 225 Comm'I 5 % w Marketing time: ^ Under 3 Mos. ®3-6 Mos. ^ Over 6 Mos. ^ Vacant >5% 100 Pred 65 Other 20 % o Market Area Boundaries, Description, and Market Conditions (including support for the above characteristics and trends): The subiecYs market area is bound to the North by Simpson FerN Rd to the South by Geneva Dr to the West by Allendale Rd and to the East by Wesley Dr The subjects market ~ area has access to empbvment schools and transportation to larger suburban and urban areas. See attached 1004 MC addendum for ~ market conditions. W Y Q 4 Dimensions: No Surve Provided Site Area: .16 Acres Zoning Classification: R-Residential Description: Residerrtial Zonin Compliance: ®Legal ^ Legal nonconforming grandfathered ^ Illegal ^ No zoning Are CCbRs a plicable? Yes No Unknown Have the documents been reviewed? ^ Yes ®No Ground Rerrfrf applicable $ / Highest b Best Use as improved: ®Preserrf use, or ^ Other use (explain) Actual Use as of Effective Date: Residential Single Family Use as appraised in this report: Residential Si le Fam" Z Summary of Highest & Best Use: See attached addendum. O v Utilities Public Other Provider/Descripfion Off-site Improvements Type Public Private Topography General Level ~ W Electricity ® ^ Street Asphalt ® ^ Size Rectangular ~ Gas ® ^ W _ Curb/Gutter Concrete _ ® ^ Shape Irc ular ater ® ^ Sidewalk Concrete ® ^ Drainage T ical y Sanitary Sewer ® ^ _ Street Lights Typical ® ^ Vew T ical Storm Sewer All - ^ ^ Other site elements: Inside Lot ^ Corner Lat ^ Cul de Sac ^ Underground lltilfties ^ Other describe FEMA Spec'I Fbod Hazard Area Yes No FEMA Fbod Zone X FEMA Map # 42041 C0278E FEMA Map Date 3/16/2009 Site Comments: See attached addendum. General Description Exterior Description foundation Basement ]None Heating # of Units 1 ^ Acc.Unit Foundation Bbck/A Slab N/A Area Sq. Ft. 1,025 Type BB # of Stories 1 Exterior Walls Brlc/Sidi Av Crawl Space N/A % Finished 0 Fuel Oil Type ®Det ^ Att. ^ Roof Surface Shi le/A Basement Fuq Ceiling N/A Design (Style) Rancher Gutters & Dwnspts. Yes/Av Sump Pump ^ Walls N/A Cooling ® Existing ^ Proposed ^ Und.Cons. Window Type DoubleHu A Dampness ^ Floor N/A Central None ~ Actual Age (Yrs.) 48 Years StorrNScreens Yes/A Settlerr>eM N/A Outside Entry None Other W Effective Age rs. 15 Years Infestation WA ~ Interior Description Appliances Attic ^ None Amenities Car Storage ^ None > Floors Hardvvood/LiNA Refrigerator ® Stairs ^ Fireplace(s) # 1 Woodstove(s) # Garage # of cars ( 1 Tot.) ~ Walls D M/A Range/Oven ® Drop Stair ^ Patio Attach. 1 ~ TrirNFnish Wood/A Disposal ^ Scuttle ® Deck p~~. m Bath Fbor Linoleum/A Dishwasher ^ Doorway ^ Porch Sunroom Btt.-In ~ Bath Wainscot CeramiclA FarVHood ® Fbor ^ Fence Carport ~ Doors Wood/A Microwave ^ Heated ^ Pool Driveway 1 Z Washer/Dryer ^ Fnished ^ Surface Concrete ~ finished area above grade contains: 6 Roams 3 Bedrooms 1 Baths 1 025 Square Feet of Gross Living Area Above Grade d Additional features: Typical to the market area. v W Describe the condition of the property (including physical, functional and external obsolescence): The subiect provided the foflowing amenities: Refinished io hardwood fbors, updated kitchen and bathroom, new interbr paint, fireplace and sunroom. All utilities were on at the time of inspection. Capyright© 2007 by a la mode, inc. This form maybe reproduced unmmd'rfied without written permission, however, a la mode, inc. must be aclmowledged and credRed. m R ES I DE NTIAL Form GPRES2 - °TOTAL for Windows" aooraisal software by a la mode. inr.. -1-A00-AI AM(lf1F 3/2007 File No. Br bst P e #2 RESIDENTIAL APPRAISAL SUMMARY REPORT mk My research did did not reveal any prior sales or transfers of the subject'n'erty for the three years prior to the effective date of this appraibsal. ~ Data Sources : MLS/Public Records ~ z r ~ 1st Prior Subject Sale,/Transfer ~ Date: No riot sales histo ~ Price: in ast 36 months Sources :Public Record 2nd Prior Subject Sale/Transfer Date: - Price: Analysis of sale/Vansfer history and/or any current agreement of sa~/listing: There have been no transfers of the subject property within the past 36 months per public record Sources = a a ~ Z O N SALES COMPARISON APPROACH TO YALUE if dev The Sales Com rison Approach was not developed for this appraisal. FEATURE SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3 Address 135 Yorkshire Dr 5214 Windsor Blvd 150 Lancaster Blvd Mechanicsbur PA 17055 Mechanicsbur PA 17055 Mechanksbur PA 17055 ShBemanstown, PA 17011 Probmity to Subject 0.16 miles 0.22 miles Sale Price $ 0.90 miles Sale PriceJGLA $ $ 150 000 $ 151 000 $ 164 500 /s •ft• $ 130.66 / .ft. $ 88.41 /s .ft. $ 133.52 /s .ft. Data Sources Ins ection MLSNisual MLSNisual Ver'Ification Sources Public Records Public Record MLSNisual VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION + - $ Adjust. P~DESCRIceP ON + - $ Adjust. PubDESCRIPTION + - $ Adjust. Sales or Financing n/a @Market Rate @Market Rate @Market Rate Concessions Na Conv SS $1k FHA SS $0 Conv SS $0 Date Of Sale,~me Na 08/10 DOM 89 10110 DOM 70 11/10 DOM 215 Ri hts Appraised Fee Sim le Fee Sim le Fee Sim le Fee Sim le Location Suburban Suburban Suburban Suburban Site .16 Acres .22 Acres .19 Acres .20 Acres Vew T ical T ical T ical T ical Deli n S le Rancher Rancher Slit Level Rancher Quality of Construction Avera Avera a Avera a Avera e Age 48 Years 46 Years 40 Years 51 Years Condition Avera a Avera e A Bank Owned +7 500 Avera e Above Grade Total Bdrms BaUls Total Bdrrns Baths Total Bdrms Baths Total Bdrms Baths Room Count 6 3 1 6 3 1.5 -1,250 7 3 2.5 -3,750 6 3 1 Gross Living Area 1 025 s .ft. 1,148 sq.ft. -1,845 1,708 sq.ft. -10,245 1 232 sq.ft. -3,105 Basemettt & Finished Unfinished Part Finished -2,500 Unfinished Unfinished Rooms Below Grade None RR None None Functionallftif Avera a Avera a Avera a Avera e Heating/Cooling BB/None FA/CAC -2,000 BB/None FA/CAC -2,000 Er>ergy Efficient ttems T ical T ical T ical Garage/Carport 1 Car Gara a Ca rt +1,000 1 Car Gar e T rcal Porch/Patio/Deck Sunroom patio Patio Ca rt +1,000 Porch Fire lace FP FP FP FP Fence Shed,Pool Etc None Shed -500 None Fence,Shed -1 000 Q g v m ~ ~ Net Ad'ustrnefd otal + - $ 7 095 + ®- $ 6 495 ^ + ®- $ 5 105 Adjusted Sale Price Net 4.7 % Net 4.3 % Net 3.1 % of Comparables GroSS 6.1 % $ 142 905 Gross 14.2 % $ 144 505 Gross 4.3 % $ 159 395 Summary of Sales Comparison Approach The comparables chosen were considered the most recent simiar and propmate avattable and should tend to create a reliable indication of overaN value/marketabddv for the subject More weigh is given to comps 1 &2 based on pro>amity to the subject. Conditfon adtt~tmeMs are based on MLS Ilstinfa remarks and/or interior photos for the comparables and also consider nestative market reaction for bank-owned properties (comp 2). I ndicated Value b Sales Com orison roach S 146 000 ~' ' R E51 D E NTI AL Copyright© 20n7 by a la mode, inc. This form maybe reproduced unmodified without written permission, however, a la mode, inc. must be acknowledged and credited. Form fiPRFS9 - "TnTAI fnr Windnwc" ~nnroic~l enffwvo h., ~ i~ .....dn ~.. ~ onn ei e..nn~ omnm File No. Brobst Pa e # RESIDENTIAL APPRAISAL SUMMARY REPORT mk (Y1CT AOD~neru Tn vu ne ~u ~___~__ _,. Fib Nn • Rmh~+ veloped for this appraisal. Provide ode uate irdormation for re 6cation of the followin c t fi a os ures nd caculatons Support for the opinion of site value (summary of comparable land sales or other methods for estimating site value): Th e cost approach is deemed not a reliable indication of value. = ESTIMATED ^ REPRODUCTION OR ^ REPLACEMENT COST NEW OPINION OF SITE VALUE v O -_-_-_.__.__ Source of cost data: -- -$ - -- - - DWELLING Sq.Ft. @ $ -$ Oual" ratio from cost service: Effective date of cost data: S .Ft. @ $ _$ Comments on Cost Approach (gross living area calculations depreciation etc ): , , . S .Ft. @ $ _$ S .Ft.@$ _ _ _$ ~ Sq.Ft. @ $ _$ _$ Gars Ca ort S .Ft. @ $ _$ Total Estimate of Cost-New _$ Less sical Functional External Depreciation =$ Depreciated Cost of Improvements .----___ _-__ _$ "As-is" Value of Site I rovemerds _$ _$ Estimated Remaini Economic Life 'rf re wired : Years INDICATED VALUE BY COST APPROACH S = .---_ -.-____ __ __ INCOME APPROACH TO VALUE if dev The Income Ap roach was not developed for this appraisal. o Estimated Month Market Rent $ X Gross Rertt Mufti ier = $ ~ Indicated Value Mcome ch Summary of Income Approach (including support far market rent and GRM): nla d a W O V Z PROJECT INFORMATION FOR PUDs if icable The Subject is part of a Planned Unit Development. ' L al Name of Pro t: o Describe common elements and recreational facilities: a_ Indicated Value b : Sales Com rison A roach; 146 000 Cost A roach (if deveb d); Income Ap roach (if develo ) $ Final Reconciliation See FIRRE:A/USPAP Addendum. z 0 f- J ~ This appraisal is made ®"as is", ^ subject to completion per plans and specifications on the basis of a Hypothetical Condition that the improvements have been completed, ^ subject to the following repairs or atteratiorx on the basis of a Hypothetical Condition that th i 0 e repa rs or alterations have been completed, ^ subject to the following required inspection based on the Extraordinary Assumption that the condition or deficiency does not require alteration or repair: v W d' ^ This report is also subject to other H pothetical Conditions and/or ExUaordinary Assumptions as specified in the attached addenda . Based on the degree of inspection of the subject property, as indicated below, defined Scope of Work, Statement of Assumptans and Limiting Conditions, and Appraiser's Certifications my (our) Opinan of the Market Value (or th if d , o er spec ie value type), as defined herein, of the real property that is the subject of this report is: ; 146,000 ~ of: 03/23/11 , ,which fs the effectlve date of this appraisal. B indicated above, this Opinion of Value is subject to Hypothetical Conditions and/or Extraordinary Assumptans included in this report. See attached addenda ~ m . A true and complete copy of this report contains 13 pages, including exhibits which are considered an integral part of the report. This appraisal report may not be properly understood witttout reference to the information d i d i th cor ne a n e complete report = Attached Exhibits: ~ ®Scope of Work ®Limiting CondJCertdications ^ Narrative Addendum ®Photograph Addenda ®Sketch Addendum ®M Add ^ ap enda Additional Sales ^ Cost Addendum ^ Flood Addendum ^ Manuf. House Addendum ^ H l ' 4 etica Conditions ^ Extraordina Asstxtt ons ®Su lementat Addendum ®General Text Addendum ^ Market Conditions Addendm Client Cont t ac : N/A Client Name: Brobst E-Mail: N/A Address: 122 Stonehed a Dr Carlisle PA 17015 APPRAISER SUPERVISORY APPRAISER (if required) or CO-APPRAISER (ff applicable) W ~ ~ a --° `r Appraiser Name. yenned PA State Cert Res raiser Supervisory or Co-Appraiser Name: ~ Company: CR ConsufGna 8 Appraisal Services Company: Ph _ v~ one: 717-763-1112 fax: 717-763-1007 Phone: Fax: E -Mail: matt(o)crc;onsuttirxt.us E-Mail: D f ate o Report (Signature): 03/29/11 Date of Report (Signature): L icense or Certrficaton #: RL739434 State: PA License or Certification #: State: D esignation: PA State Cert Residential Appraiser Designation: E xpiration Date of License or Certfication: 06/30/11 Expiration Date of License or Certification: I nspection of Subject: ®Interior & Exterior ^ Exterior Only ^ None Inspection of Subject: ^ Interior & Exterior ^ Exterior Only ^ None D ate of Inspection: 03/23/11 Date of Ins ection: REST DENTIAL Copyrightm 2007 by a la mode, inc. This fam maybe reproduced unmodified without written permission, however, a la mode, inc. must be aclmowledged and credited. Form GPRFS9 - "Tr1TAl for Windnwc~~ ~nnreiee~ ~„e..,.,.,. ti... i- .....w_ -rr•-•--• ~~••••-•~ ~~ u m nN , nn.. - ~-VW-MLHIYIVUC J/NU! Sueelamant~lt A.Ide...a..~ F'I No. Br Page #4 Standard utility easements are present which do not adversely affect the site. No encroachments noted. A certified plat was not provided to the appraiser. The site dimensions are estimated from public tax maps or the appraiser's measurements. No adverse conditions are indicated by the site's size or shape. The subject conforms to current zoning codes as recorded and take from public zoning records. The appraiser has personally examined the most current information sources, HUD/FEMA flood hazard maps and/or local municipal documents for the subject vicinity in order to estimate whether any portion of the subject site is located in a special flood hazard area as defined by HUD/FEMA. Unless otherwise noted in the body of the report or the attached addendum, the subject is considered by the appraiser to be Zone C or X, which are not special flood hazard areas requiring flood zone information on the survey report. The survey report should denote any special flood hazard line on the specific site and its relationship to any improvements. A survey plat provides site specific data, where as HUD/FEMA maps are more general in nature. URAR: Enviromentai Conditions To the best of the undersigned's knowledge, the presence of Radon has not been detected on this property, or if Radon has been detected, it has been determined that the level of Radon is safe according to the standards established by the Enviromentai Protection Agency. The undersigned does not, however, make any guarantees or warranties that the property has been tested for the presence of Radon, or if tested that the tests were conducted pursuant to EPA approved procedures. The appraiser has not been informed, nor has the appraiser any knowledge of the existence of any environmental or health impediment, which if known, could have a negative impact on the market value of the subject property. The valuation contained herein is not valid if any hazardous items are found in the subject property and stated within the appraisal report, including but not limited to: Ureaformaldehyde foam insulation, Radon Gas, Asbestos Products, Lead or Lead Based Products, Toxic Contaminants. URAR: Digital Signatures The digital signature used on this report is an exact replica of the appraiser's actual signature. The digital signature has not been altered and is downloaded from the program by the appraiser. The digital signature is password to avoid improper usage. The digital signature should be considered equal to an original signature by the appraiser. URAR Sales Comaarison The basement adjustments are based upon MLS information such as "Full Finish, Full Part Finish, and Full Unfinished". The second line adjustment for basement is based upon bathroom count and differs from basement finish. Therefore, the adjustment for basement finish and bathrooms are based upon market information, and not room count, which is not deemed reliable from prior experience. Please be advised in the sales comparison grid, bathrooms are adjusted for on the first line and gross living area room count are adjusted together as a single adjustment on the second line. Differences of less than one hundred square feet are not adjusted. Ail value affecting dissimilarities were adjusted according to market reaction. These dissimilarities are not considered to be an inadequacy or an over-improvement to the subject property or the comparable sales. Any dissimilarities that may have a negative impact on marketability or buyer appeal are noted within the appraisal report. Form TADD - "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE URAR: Aoaarent Easements A Encroachments Site -The subject is typical of the area and sits at street level. Sttenlamont~l Ad.t....d..~ File No. B_r9bst Paae #5 The scope of this appraisal has been to perform a detailed inspection and analysis of the subject property within the limits of the type of assignment, to collect and analyze comparable data to reach an opinion of value, and to write a report conveying the value conclusion to the client. In the collection of data, sources include (but not limited to) MLS, Lenders, Brokers, County Records, and previous appraisal files were utlized. It is assumed that the information from these sources is accurate. All comparables have been verified as closed through data sources readily available unless indicated in the body of the report. No personal property is included within this report. In accordance with the competency rule of the USPAP, the appraiser(s) certify that the correct educational requirements, experience hours, and knowledge has been obtained to accurately estimate value of the subject property within this report. No one other than the appraiser(s) signing the report have provided significant assistance in completing this report unless otherwise noted within. Any apprentice or staff has completed the company orientation program and is either taking educational courses, or has already completed the courses in appraisal standards and principles. The senior appraiser has consulted, reviewed, and or physically inspected the subject property for all reports in which assistance in the development was necessary. The senior appraiser is signing the report and takes full responsibilty for this report in accordance to Standards Rule 2-3 and 2-5. Everywhere in this report where it states "ESTIMATE OF MARKET VALUE" is to be defined as "OPINION OF MARKET VALUE" in conformance with current USPAP. Form TADD - "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE The purpose of this report is to provide an opinion of market value. The function of the appraisal is for the use of valuation purposes only. Subject Front 135 Yorkshire Dr Sales Price Gross Living Area 1,025 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 1 Location Suburban dew Typical Site .16 Acres Quality Average Age 48 Years Subject Rear Subject Street Form PIC3x5.SR -'TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE File No. Brob~r Page #6 Subject Photo Paae Subject Interior 135 Yorkshire Dr Sales Price Gross Living Area 1,025 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 1 Location Suburban View Typical Site .16 Acres Quality Average Age 48 Years Subject Interior Subject Interior Form PIC3x5.S1- "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE Fil . Br _ Paae #7 Subject Interior Photo Paap file No. Brobst P-T- aae #s1 ~~ 5 ~ F 5 - ' '~.. ~ e ~ . fir., ' ,,1j . ,~~~' I" ' ~ w ~ om `; ~ ~ ' ~ ,, ~ ~ t , ~F~. ""T ^ , , ^ ~ ~~s tt p .. , ~ ,~ . A . j. ~i tR. t'^" ~ ~~ !,~ - ley ~ ~~" ._. - _......-M,,.,.~,., a Comparable 7 5214 Windsor Blvd Prox. to Subject 0.16 miles Sale Price 150,000 Gross Living Area 1,148 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 1.5 Location Suburban dew Typical Site .22 Acres Duality Average Age 46 Years Comparable 2 150 Lancaster BNd Prox. to Subject 0.22 miles Sale Price 151,000 Gross Living Area 1,708 Total Rooms 7 Total Bedrooms 3 Total Bathrooms 2.5 Location Suburban dew Typical Site .19 Acres Duality Average Age 40 Years Comparable 3 208 W Main St Prox. to Subject 0.90 miles Sale Price 164,500 Gross Living Area 1,232 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 1 Location Suburban View Typical Site .20 Acres Duality Average Age 51 Years Form PIC3x5.CR - TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE Comparable Photo Paae Location Map File No. Brobst Paae #9 Form MAP.LOC - "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE Fil N . Bro Pa a #10 a~.o' Dining Bedroom Bedroom Kitchen 0 N c ~ N Living Room Bedroom Bath 41.0' sk~a~ ey,~ rv^ Commerrts: AREA CALCULATIONS SUMMARY Code ~-it~n Net Sine Net Totals GLAl First Floor 1025.0 1025.0 Net ENABLE Area (Rounded) 1025 LNING AREA BREAKDOWN Breakdown Subtotals First Floor 25.0 a 41.0 1025.0 lftem (Rounded) 1025 form SKT.BIdSkI - "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE Building Sketch (Page - 1) File No. Brobs[ Pa a #11 Market Conditions Oddpnrlllm to the er,n~~~~~~ Qs.,.,.+ mk -- - - - •..••••• • ••• ••~ • Flo r+to. Brobst The purpose of this addendum is to provide the lender/client with a clear and accurate understanding of the market trends and conditions prevalent in the subject rrei hborhood. This is a re wired addendum for all a raisal re orts with an effective date on or after r~ 1 2009. , Pro Address 135 Yorkshire Dr C' Mechanicsburg State PA ZIP Code 17055-3533 Borrower n/a Instnktions: The appraiser must use the irdormafion required on this form as the basis for his/her conclusions, and must provide support for those conclusions, regarding housing trends and overall market conditions as reported in the Neighborhood section of the appraisal report form. The appraiser must fill in all the information to the extent it is available and reliable and must provide analysis as indicated below. if any required data is unavailable or is considered unreliable, the appraiser must provide an explanation. tt is recognized that not all data sources will be able to provide data for the shaded areas below;rf it is available, however, the appraiser must include the data in the analysis. If data sources provide the required information as an average instead of the median, the appraiser should report the available figure and identify it as an average. Sales and listings must be properties that compete with the subject property, determined by applying the criteria that would be used by a prospective buyer of the subject property. The appraiser must explain any anomalies in the data, such as seasonal markets, new construction, forecbsures, etc. • ~ Prior 7-12 Months Prior 4-6 Months Current - 3 Months Total # of Comparable Sales Settled 42 11 3 Absorption Rate Dial Sales/Months 7.00 3.67 1.00 Total # of Comparable Active lisfin s SEE COMMENTS SEE COMMENTS 20 Months of Housin Supp Dial Listin s/Ab.Rate SEE COMMENTS SEE COMMENTS 20.0 Median Sale ~ LM Price, DOM, Sak/List'/~ Prior 7-12 Months Prior 4-G Months Current - 3 Months Median Com arable Sale Price 151 000 150 000 146,000 Median Comparable Sales Days on Market 25 98 94 Median Com arable List Price SEE COMMENTS SEE COMMENTS 146 000 Median Comparable Listings Days on Market SEE COMMENTS SEE COMMENTS 94 Median Sale Price as % of List Price 99 Seller- developer, builder, etc. paid financial assistance prevalerd? Yes ^ No Explain in detail the seller concessions trends for the past 12 months (e.g., seer contributions increased from 3% to 5%, increasin fees, options, etc.. Per MLS listi information, seAers in this market a ear Willi to contribute to b r Overall Trend Increasin Stable Declining ^Increasin ^Stable ®Declining ^ Declinin Stable ^ Increasi ^ Oecani ^Stable ^ Increasi Overall Trend ^Increasin ®Stable ^Declining ^Declinin ®Stable ^Increasin ^ krcreasi Stable ^ Declini ^ Declini ^Stable ^ Irrcreasi ^ Increasing ®Stable ^Declining ^Declinin Stable ^ Increasing g use of buydowns, closing costs, condo s cbsi costs, ical between 3-6%. ' Are foreclosure sales REO sales a factor in the market? ^ Yes ®No ff yes, explain including the trends in listings and sales of foreclosed properties . No more than what is historica ical to this market. Cite data sources for above information. CPML-MLS & Real Estate a errts in the market lace. Summarize the above information as support for your conclusions in the Neighborhood section of the appraisal report form. If you used any additional information, such as an analysis of pending sales and/or expired and withdrawn listings, to formulate your conclusions, provide both an explanation and support for your conclusions. CPML-MLS wiN not search fors ified time nods 4-6 months 7-12 months For this form 1004MC search ammeters on included Lower Allen Townshi for detached homes in the value ra a of $125,000-$165 000 as a ical b er would search. Invento trends show a recent decrease in sales which is like due to seasonal factors. Median sales rice a ears stable. H the su ' is a unit in a condominYrm a cooperative project ,complete the folbwm : project ~~: Subject Project Data Prior 7-12 Months Prior 4-6 Months Currerd - 3 Months Overall Trend Total # of Comparable Sales Settled ^ Increasing ^Stable ^Declining Absorption Rate Dial Sales/Months ^ Increasing ^Stable ^Declining Total # of Active Comparable Listings ^ Declini ^Stable ^Increasin Months of Unit Su pl otal Listin s/Ab.Rate ^ DecNni ^Stable ^ Increasi Are foreclosure sales (REO sales) a factor in the project? Yes No tf yes, indicate the number of REO listings and explain the trends in listings and sales of forecosed ro erties. Summarize the above trends and address the impact on the subj~t unit and project. ~ Signature ...~ Signature • A raiser Name `~ PA State Cert Res raLaer Supervisory Appraiser Name Coma Name CR Consufti & sisal Services Company Name Com Address 3920 Market St Cam Hill PA 17011 Coma Address • . State License/Certification # RL139434 State PA State License/Certification # State Email Address matt@crconsutting.us Email Address ncvuie mac; rcxm i i moron Ewa rage i or i Fannle Mae Form 1004MC March 2009 Form 1004MC2 - "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE File No. Brobst Paae #12 FROM: I NV01 C E Erik J Reisser, CRA CR Consulting & Appraisal Services 3920 Market St Camp Hill, PA 17011 Telephone Number: 877-235-3600 Fax Number: 866-235-5544 T0: Telephone Number: Fax Number: ARemate Number: E-Mail: DESCRIPTION Lender: n/a Client: Brobst Purchaser/Borrower: n/a Property Address: 135 Yorkshire Dr City: Mechanicsburg County: Cumberland State: PA Zip: 17055-3533 Legal Description: Deed Reference 249-3965 FEES AMOUNT URAR 325.00 SUBTOTAL ~ 325.00 PAYMENTS AMOUNT Check #: Date: Description: Pd Check 325.00 Check #: Date: Description: , Check #: Date: Description: SUBTOTAL 325.00 TOTAL DUE $ a.oo INVOICE NUMBER DATE 03/29/11 REFERENCE Irrtemal Order #: Lender Case #: CIieM File #: Main File # on form: Brobst Other File # on form: m k Federal Tax ID: Empbyer ID: Form NN5 - "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE CR consulting & Appraisal Services 1VfalpeZZ Funeral Hooze 8 Market Plaza Way (717) 697-4E~96 Mechanicsburg, PA 1705 www.malpezzifimeralhome.com Jerem~~ J. Shartzer, FD Michael J. Malpezzi, Owner, FD Kyle C. Knipe, FD August 2, 2010 Robert J. Brobst 112 Stonehenge Drive Carlisle, PA 17013 The Funeral Service for Richard C. Brobst We sincerely appreciate the confidence you have placed in us and will continue to assist you in every way we can. Please feel free to contact us if you have any questions in regard to this statement. THE FOLLOWING IS AN ITEMIZED STATEMENT OF THE SERVICES, FACILITIES. AUTOMOTIVE EQUIPMENT, AND MERCHANDISE THAT YOU SELECTED WHEN MAItiING THE FUNERAL ARRANGEMENTS. I. PROFESSIONAL SERVICES: Services, Facilities and Cremation $3,675.00 FUNERAL HOME SERVICE CHARGES $3,675.00 SELECTED MERCHANDISE: Woodgrain Cremation Container $43.00 Solid Marble Urn $425.00 Natures Tranquility Register Package $95.00 THE COST OF OUR SERVICES, EQUIPMENT, AND MERCHANDISE THAT YOU HAVE SELECTED $4,630.00 AT THE TIME FUNERAL ARRANGEMENTS WERE MADE, WE ADVANCED CERTAIN PAYMENTS TO OTHERS AS AN ACCOMMODATION. THE FOLLOWING [S AN ACCOUNTING FOR THOSE CHARGES. CASH ADVANCES: Certified Death Certificates Newspaper Notices -Patriot Newspaper Notices - Pottsville Clergy Military Honor Guard TOTAL CASH ADVANCES AND SPECIAL CHARGES SUB-TOTAL INITIAL PAYMENT /DISCOUNT /CREDITS TOTAL AMOUNT DUE $48.00 $142.77 $64.00 $125.00 $0.00 $429.77 $5,059.77 $0.00 $5,059.77 ~ ~~ ~~~ ~,~~ ~~ ~ ~ ~ ~ ~`~~ ~.