HomeMy WebLinkAbout04-0767PETITION FOR PROBATE & GRANT OF LETTERS
Estate of HARRY S. CLAYPOOL, SR.
also known as I-lARRY S. CLAYPOOL
Social Security No. 190-16-2687
, deceased.
No. 21-04-~ LO 7~ 7
To: Register of Wills for the
County of Cumberland
Commonwealth of Pennsylvania
The Petition of the undersigned respectfully represents that:
Your Petitioners, who are 18 years of age or older and the Co-Executors named in the Last Will of the
above decedent dated January 21,2003 , and codicils dated none The
Executor named none died Renunciations for none attached hereto.
Decedent was domiciled at death in Cumberland County, Pennsylvania, with his last family or principal
residence at 1300 Mt. Laurel Circle, Harrisburq, Pennsylvania 17110
Decedent, then 81 years of age, died November 24, 2003 .,-~., Manor Care Carlisle .
Except as follows, decedent did not marry, was not divorced and did not h~..,.v~;-a chil~born
after execution of the Will offered for probate; was not the victim of a killing and w~ never a~ud ca(bd
incompetent: N/A i::~¢
Decedent at death owned property with estimated values as follows:
(If domiciled in PA) All personal property
(If not domiciled in PA) Personal property in PA
(If not domiciled in PA) Personal property in County
Value of real estate in Pennsylvania, situated as follows:
~40~000.08~
$. v,~
WHEREFORE, Petitioners respectfully requests the probate of the Last Will and Codicil(s) presented
herewith and the grant of letters testamentary thereon.
Signature(s) and Residence(s) of Petitioner(s):
fayye,e L. Cl y¢ old";' v
1300 Mt. Laurel Circlg
Harrisburg, PA 17110
"~.t'hy I/Claypool /'[ ~' '
1300 Mt. Laurel Circl&Y
Harrisburg, PA 17110
OATH OF PERSONAL REPRESENTATIVE
COMMONWEALTH OF PENNSYLVANIA ·
COUNTY OF CUMBERLAND ·
SS
The Petitioner(s) above named swear(s) or affirm(s) that the statements in the foregoing petition are
true and correct to the best of the knowledge and belief of Petitioner(s) and that as personal representative of
the above decedent, petitioner(s) will well and truly administer the estate according to law.
Sworn to or affirmed and subscribed
before me this [ ~_'~'. day of
Auqust ,2004.
Estate of HARRY S. CLAYPOOL, SR.
also known as HARRY S. CLAYP00L
PETITION FOR PROBATE & GRANT OF LETTERS
~o. 7
To: IRegister of Wills for the
, deceased. County of Cumberland
Social Security No. 190-16-2687 Commonwealth of Pennsylvania
The Petition of the undersigned respectfully represents that:
Your Petitioners, who are 18 years of age or older and the Co-Executors named in the Last Will of the
above decedent dated January 21,2003 , and codicils dated none . The
Executor named none died Renunciations for none attached hereto.
Decedent was domiciled at death in Cumberland County, Pennsylvania, with his last family or principal
residence at 1300 Mt. Laurel Circle, Harrisburq, Pennsylvania 17110
Decedent, then 81 years of age, died November 24, 2003 .~.. Manor Care Carlisle .
Except as follows, decedent did not marry, was not divorced and did not ~a chil~born
~!adopted
after execution of the Will offered for probate; was not the victim of a killing and w .~as~ never a~udica~bd
incompetent: N/A i!~.i
Decedent at death owned property with estimated values as follows:
(If domiciled in PA) All personal property
(If not domiciled in PA) Personal property in PA
(If not domiciled in PA) Personal property in County
Value of real estate in Pennsylvania, situated as follows:
WHEREFORE, Petitioners respectfully requests the probate of the Last Will and Codicil(s) presented
herewith and the grant of letters testamentary thereon.
fSignature(s) and Residence(s) of Petitioner(s):
%a0Y0~e Id~. LL~ u~r ~Y~r c°l /~' v-
Harrisburg, PA 17110
~hy I/Claypool /'l (j
1300 Mt. Laurel Cir¢lb.d
Harrisburg, PA 17110
OATH OF PERSONAL REPRESENTATIVE
COMMONWEALTH OF PENNSYLVANIA '
COUNTY OF CUMBERLAND '
ss
The Petitioner(s) above named swear(s) or affirm(s) that the statements in the foregoing petition are
true and correct to the best of the knowledge and belief of Petitioner(s) and that as personal representative of
the above decedent, petitioner(s) will well and truly administer the estate according to law.
Sworn to or affirmed and subscribed
before me this I ~'Jl~, day of
ell . Clayl::~.
- tC"~th~/I. ~la~'pool
OATH OF SUBSCRIBING WITNESS
Also known as
.,Deceased
Cl . pool
/~. ~1(~
(each) a subscribJg wimess to the ~ll/codicil presented herewith, (each) &ing dul~alifie4
according to law, depose(s) and say(s) ~ nt ~d saw C:: ~ ~;~; '
~ the testa~~e sam~m~d
. g .
that ~__ s~ed as a wlmess at the request of the testat ~:h
and (in the presence of each other) (in the presence of the other subscribing wimess(es).
(Address)
Sworn to or affirmed aqd subscribed
BefRre me this [ ~-B'~ day,qf
.~,q;_, .-~ ,20 o¥
(Address)
]'hi,'4 is to certify that the infbrmation here given is correctly copied fi'om an original certificate of death dui3, filed with me as
I,ocal Registrar. The original certificate will be forwarded to the State Vital P, ecords Office for permanent filing.
WARNING: It is illegal to duplicate this copy by photostat or photograph.
Fee for this certificate, $2.00
No.
Local Registrar
Date
COMMONWEALTH OF PENNSYLVANIA - DEPARTMENT OF HEALTH · VITAL RECO~;~
CERTIFICATE OF DEATH
o~ ~ j ~ ~ -- ~11 1 ~ 22 ~Cr ' ~--" ~'~- --- ,o,~..
. v~'l , I ! / - - [ azgsv~le, p~,~ ~,,.~ ~
uumDerland IS°uth Mlddleton~Manor Care Carlisle I~,~.~. J(~;., ' ' * '
~ ~. ~ ~'~.~.~ ' ~ WnlEe
~'SM~I~A~t~C~ ~ Z~C~) I~K~NT'S ' ' ' I /14, ma
1 300 Mt. Laurel Circle I~[~ ,,..~. Pa ~
Harrisburg, Pa 17110 I~ --' ~ -
',~..s,:.=z ~v,...~. t., ['~' ,~.~ Cumberland ~' ,~
Harr O C1 ' I~m[..s.~,v.a.~..~
,,. . Y ~ aypoo~ I .Eva
~ms~,~. 1~.300 Mt. Laurel Circle Harrisbur .
~E~T~ ~E~O, . . q, Pa.
-26-°3 L~olling Green Mem. Par~ Camp Hl11, Pa.
~~~' ~ . ~011248 L I~sselma8 F H & C S Inc
--~=~=,.,~~.~ ~ ~ - · · ...... ~ ___ - .... 324
,~ ~..~ · - ~ ~.~
~ ~ A C~E~E ~:
InV, IIadi~g lo m~edme
~. Eme ~NOERLYIN(~
C.~M.I~ (D~a~ ~ ,~,u~ y c.
DU~ TO (OR AS A CONSEQUENCE O~:
OUE TO eR AS A COfl-e~OU[ NCE O~:
I
* ,% . t~ r -
O~E ~ (~. ~ ~
LAST WILL AND TESTAMENT
OF
HARRY S. CLAYPOOL
I, HARRY S. CLAYPOOL, now of 1937 Monterey Drive,
Mechanicsburg, Cumberland County, Pennsylvania, being of sound and
disposing mind memory and understanding, do hereby make, publish
and declare thi£ to be my Last Will and Testament, hereby revoking
all other Will~' and Codicils previously made by me.
ITEM I:
I direct that payment of all my just debts,
expenses of my last illness, funeral e~penses, and the costs of
administering my estate from my estate as soon after my death as
conveniently may be done.
ITEM II: I give, devise and bequeathS' all ~ th0'!.~est,
residue and re~¥~inder of my estate, of every nature ~nd wherever
situate, toget':..er with all insurance policies there,, u~ mv
spouse, MAYBEL~E L. CLAYPOOL.
ITEM III:
I direct that any and all taxes that may be
assessed in consequence of my death, including all inheritance,
estate and transfer taxes imposed upon my estate passing under my
Will or othe~Tise, shall be paid out of the principal of my
residuary estat~ as a part of the expense of the administration of
my estate.
1
ITEM IV: I authorize and empower my personal
representative to compromise, adjust, release and discharge in such
manner as my personal representative may deem proper, all debts and
c~aims owed by or to me or my Estate; ~o sell, lease or exchange at
public or private sale or in such manner, at such prices, and upon
such terms of credit or otherwise, as my personal representative
may deem proper, all or any part of my property, real or personal;
to exec ute, acknowledge and deliver instruments of conveyance,
including deeds in fee simple; to borrow money for the purpose of
paying estate, inheritance or other taxes which are required to be
paid and to secure any such loans by pledge or mortgage of all or
any part of my property and to execute the necessary instruments to
c%rry out such powers; to distribute my estate in kind or partly in
money or partly in kind, and to determine the fair value at which
any property so distributed in kind shall be received by the
distributees; to conduct any business in which I have an interest
at the time of my death, for such period as my personal
representative may deem proper, power to borrow money and pledge
a~sets of the business and the power ~o do all other acts that I,
in my lifetime, could have done, to delegate such power to any
partner, manager or employee without liability for any loss
occurring therein and to organize a corporation to carry on said
business as capital to such corporation and accept stock in the
corporation in lieu thereof and hold such stock for the uses of
~%is my Will, and to vote said stock or sell the same as to my
2
personal representative may seem best; to retain all stocks,
assets, bonds and investments owned by me without being confined to
what is known as legal investments; to execute any options to
purchase, to ~pply for stocks, bonds or other investments, to
p~£chase or otherwise acquire real estate and to execute the same
powers thereover as hereinbefore provided, to retain indefinitely
any part of my assets, real or personal, which is or may become
unproductive or to make sale thereof; to pay carrying charges and
expenses of the property out of other principal or income of my
estate; to invest and reinvest in all forms of property without
restriction to investments authorized for Pennsylvania fiduciaries,
as my personal representative deems proper, without regard to the
principle cf diversification or risk~ to exercise any law-given
option to treat administrative expenses either as income tax or as
estate deductions, without regard to whether the expenses were paid
from principal or income. The powers herein conferred shall be to
my named personal representative and all successors thereto and
shall be in addition and not in limitation of other powers
conferred on s~id fiduciary.
Any and all payment or payments of any sum or sums, whether in
cash or in kind and whether for principal or income payable to any
beneficiary shall be made upon the sole receipt of the respective
beneficiary to whom the payment is made and free from anticipation,
alienation, assignment, attachment, and pledge and free from
control by the creditors of any such beneficiary.
ITEM V: Ail shares of principal and income hereby given
~hall be free from anticipation, assignment/ pledge or obligation
of ~he beneficiaries and any of them and shall not be subject to
any execution or attachment, levy or sequestration or other claims
of ~he creditors of said beneficiaries or any of them.
ITEM VI: I nominate, constitute and appoint my
spouse, MAYBELLE L. CLAYPOOL and my daughter, CATHY I. CLAYPOOL, or
~%e survivor of them, as the sole Executrices of this my Last Will
and Testament, to serve without bond.
IN WITNESS WHEREOF, I, HARRY S. CLAYPOOL, have, to this my
Last Will and Testament, set my hand this ~J day of
, 20 ~
HARRY S? CLAYPOOI~
(SEAL)
Signed, sealed, published and declared by HARRY S. CLAYPOOL,
the above named Testator on the 1~1/a day of
J~/~ , 20 DJ , as for his Last Wi nd Testament,
in t~ pr~nc~ of us, wh6, in his presence, and in the presence
of each other, have, at his
witnesses here'~o.
Na~ · //
request, subscribed our names as
at /'¢~ ? ,i~"/~/~¢? ~ .:{"'i"'.~,/L-'~
residing
,~,~._ ~ ,') .... ;./i,~,,, '. ~,,j_.
/~vce_m u~,r~.-a~,,,4.,~f / · -'
4
CERTIFICATION OF NOTICE UNDER RULE 5.6(a)
Name of Decedent:
Date of Death:
Estate No.:
Harry S. Claypool, Sr.
November 24, 2003
21-04-0767
To the Register:
I certify that notice of the beneficial interest required by Rule 5.6(a) of the Orphan's
Court Rules was served on or mailed to the following beneficiaries of the above-captioned estate
on August 19, 2004.
Name
Address
Maybelle L. Claypool 1300 Mt. Laurel Circle, Harrisburg, PA 17110
Cathy I. Claypool 1300 Mt. Laurel Circle, Harrisburg, PA 17110
Notice has now been given to all persons entitled thereto under Rule 5.6(a) except none .
Date: 08-19-04
Capacity:
Signature(/~ )
IRWIN & -]Mc'KNIGHT
Name Ro~er B. Irwin, Esquire
Address 60 West Pomfret Street
Carlisle, PA 17013
Telephone t~717) 249-2353
X
~ Personal Representative
_ Counsel for Personal Representative
August 23, 2004
COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
DEPARTMENT 280601
HARRISBURG, PA 17128-0601
Waggoner, Frutiger & Daub
5006 East Trindle Road
Suite 200 Mechanicsburg, PA 17050-3647
Telephone
OF., (717) 787.~, 30
~ 5:FAX ¢17)772~412,~;, :r;
Dear Sir/Madam:
Re: Estate of Harry S. Claypool
File Number 2104-0767
This is in response to your request for an extension of time to file the Inheritance Tax Return for
the above estate.
In accordance with Section 2136 (d) of the Inheritance and Estate Tax Act of 1995, the time for
filing the return is extended for an additional period of six months. This extension will avoid the
imposition of a penalty for failure to make a timely return. However, it does not prevent interest from
accruing on any tax remaining unpaid after the delinquent date.
The return must be filed with the Register of Wills on or before 02/21/05. Because Section 2136
(d) of the 1995 Act allows for only one extra period of six (6) months, no additional extension(s) will be
granted that would exceed the maximum time permitted.
- , Sincerely, ...... 7'..
Claudia Maffei, Supervisor
Document Processing Unit
Inheritance Tax Division
COMMONWEALTH OF
PENNSYLVANIA
DEPARTMENT OF REVENUE
DEPT. 280601
HARRISBURG, PA 17128~0601
REV-1500
INHERITANCE TAX RETURN
RESIDENT DECEDENT
(LAST, FIRST, AND MIDDLE INITIAL)
Cla~pool Harry
DA'~ OF BIRTH (MM-DD-YEAR)
11/10/1922
OFFCLA, L USE ONLY
FILE NUMBER
21 -- 04 0767
DA3E OF DEATH (MM-DD-YEAR)
11/24/2003
(IF APPLICABLE) SURWV1NG SPOUSE'S NAME (LAST, FIRST, AND MIDDLE INITIAL)
Ma~belle L. Cla~pool
r~3. Remainder Return (date ol death prior to 12-13-82)
~ 1. Original Return ~'1 2. Supplemental Return
[~ 4, Limited Estate [~ 4a. Future Interest Compromise (date of death after 12-12-82) ~--~ 5. Federal Estate Tax Return Required
[~6. Decedent Died Testate (Attacl~ c~py ~f Will) [~ 7. Decedent Maintained a Lh4ng Trust (Attach copy of Trust) 0____ 5. Total Number of Safe Deposit Boxes
E~ 9, Litigation P~ Recat~d E~ 10. Spousal Povedy Credit {date of deat'n ~etween 12-31-91 and 1-1-95} [] 1 1. Election to tax under Sec. 9113(A) (^~ ach O)
Timothy C Waggoner, CPA
Waggoner Frutiger & Daub
~LEPHONE NUMBER
717-506-1222
CO~LE'~ MAiLiNG ADDRESS
5006 E Trindle Rd, Suite 200
Mechanicsburg, PA 17050
1. Real Estate (Schedule A) (1)
2. S{ocks and Bonds (Schedule B) (2)
3. Closely Held Corporation, partnership or Sota-Proprietarchip (3)
4. Mortgages & Notes Recatvable (Schedule D) (4)
5. Dash, Bank Deposits & Miscellaneous Personal property
(Schedule E) (5)
6. Joi~ Owned Propefty(ScheduleF) (6)
I I Separate Billing Requested
7. Inter-Vivos Transfem & Mi$catlaneous Non-Probate Propeffy (7)
(Schedule G or L)
8, Total G?oss Assets (total Lines 1-7)
9. Fun erat Expenses & Ad ministmtiw Costa (Schedule H) (9)
10. Debts of Decedent, Mortgage Liabilities, & Liens (Sd~edule I) (10)
1 t. Total Deductions (total Lines 9 & 10)
12, Net Value of Estate (Line it minus Line 11 )
t3. Ch adtable and Governmental Bequasta/Sec 9113 Trusta for ',~lich an atecti°n ta tax has nat beerl
made (Schedule J)
14. Net Vatae Subject to Tax (Line 12 min~s Line t3)
(s)
19,363
(11)
9,952
58,640
68,592
(49,229)
0
(49,229)
(12)
(13)
(14)
SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES
15. Amount of Linel4taxableatthespousaltax 0 x,0 0 (15)
rate, or transfers under Sec. 9116 (a)(1.2)
16. Amount of Line l 4 taxable at lineal rata 0 x.0 45 (16)
0 x .12 (17)
17. Amount of Line 14 taxable at sibling rata
18. Amount of Line 14 taxabta at collateral rate 0 x.15 (18)
19. Tax Due (19)
> > BE suRE ~O ANSWER ALL QUESTIONS ON REVERSE SIDE AND RECHECK MATH < <
0
0
0
0
0
3W4645 1000
Decedent's Complete Address:
S3REET~D~SS Laurel Circle
1300 Mountain
I Cumberland
Harrisburg
Tax Payments and Credits:
1. Tax Due (Page 1 Line 19)
2. Credits/Payments
A. Spousal PoveAy Credit 0
B. Pdor Payments 0
C. Discount 0
3. InterestJPenalty if applicable
D. Interest 0
E. Penalty 0
Total Credits (A + B + C) (2)
Total Interest/Penalty (D + E) (3)
(1) 0
0
0
4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT.
Check box on Page 1 Line 20 to request a rel'und
5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE.
A, Enter the interest on the tax due.
(4) 0
(5) 0
(5A) 0
B. Enter the total of Line 5 + 5A, This is the BALANCE DUE.
Make Check Pa to: REGISTER OF WILLS, AGENT
(5B) o
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 properly transferred; ....................... [~ []
b. retain the right to designate who shall use the property transferred or its income; ......... [~ []
c. retain a reversionary interest; or ................................ E~] [~
d. receive the promise for life of either payments, benefits or care? ................. [] [~
2. If death occurred after December 12, 1982, did decedent transfer property within one year of death
without receiving adequate consideration? ............................ E~] []
3. Did decedent own an "in trust for" or payable upon death bank account or escufity at his or her death? [] []
4. Did decedent own an individual Retirement Account, annuity, or other non-probate property which
contains a beneficiary designation? ................................ r~ []
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN.
SIGNATURE OF PERSON RESPONSIBLE FOR FILING RE[URN
1300 Mountain Laurel Circle
DATE
Harrisburg, PA 17110
Mechanicsburg, PA 17050
For dotes of death on or assr July 1, 1994 and before January 1, 199fi, the tax rate imposed on the nat value of transfers to or for the use of the surviving spouse is 3%
[72 P.S. § 9916 (o) (1.1) (~]+
For dates of death on or assr Janusry 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 0% [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 fo~ disc~osupe 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 nat value of transfers from a deceased child tw~ofy-one years of age or younger at death to or for the use of a natural parent, an adoptive parent,
or a steppare~lt of the child is 0% [72 P.S. § 9116(a)(1.2)].
T'ne tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is 4.5%, except os noted in 72 P.S. § 9116(1.2) [72 P.S. § 9116(o)(1 )].
The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12% (72 P.S. § 9116(a)(1.3)], A sibling is defined, under Section 9102, as an
individual who has at least one parent in common with the decedent, whether by blood or adoption.
3W4646 1.000
SCHEDULE C
CLOSELY-HELD CORPORATION,
PARTNERSHIP OR SOLE-PROPRIETORSHIP
COMMONWF-ALTH OF PENNSYLVANIA
INHERITANCE TAX RE~.IRN
r~b~NT, *-, ~,-, ,,=NT FILE
ESTATE OF
Harry S. Cla~l~ool 0767
ScheduleC-1 otC-2 ncluding a[Isuppor~ng nf~rmeti~n)n1ustbeattachedf~re~chc~se~he~dc~rp~r~ti~n~a~nershipinterest~fthedecede~t~therfo~a
sole-proprietorshlp. See instructions for the supporting information to be submitted for sole-proprietorships.
VALUE AT
DESCRIPTION DATE OF DEATH
33.33 Shares
Coventry Custom Homes, Inc.
1300 Mountain Laurel Circle
'Harrisburg, PA 17110
The decedent owned a 1/3
interest in Coventry Custom
Homes, Inc. The company's
only asset was one residential
home at the date of death of
the decedent. The home was
sold after the date of death.
The estate values the company
based on that subsequest sale.
See copy of settlement sheet
and related valuation
computation of company.
See the Schedule C-1 and
additional material attached.
Worthington Development, LP
15 Maybelle Court
Mechanicsburg, PA 17055
49.50% Limited partnership
interest
The decedent retained a 49.50%
limited partnership interest
in the Worthington Development
Limited Partnership. The
estate values the ownership
based on the attached
valuation computation.
See the Schedule C-2 and
additional material attached.
TOTAL (Also enter on line 3, Recapitulation)
(if more space is needed, insert additional sheets of the same size)
$W4697 1000
2,019
17,344
19,363
REV-t505 EX+ (6-98)
COMMONWEALTH OF PENNSYLVANIA
INHER[TAN CE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
Harry S Claypool
SCHEDULE C- 1 /
· CLOSELY-HELD CORPORATE
STOCK INFORMATION REPORT
FILE NUMBER
0767
1. Name of Corporation (;oventry Custom Homes. Inc
Address 1300 Mountain Laurel Circle
City Harrisburg.
2. Federal Employer I.D. Number 23-___2920810
State PA__ Zip Code 17110
State on Incorporation PA
Date of Incorporation 07/31/97
Total Number of Shareholders 3
__ Business Reporting Year 2003
3, Type of Business Construction
4.
Product/Service Residential Real Estate
~K v~,,~,.,~o~.v0ti~g ,. : SHA~Ri~ OUTST~NO Ng PARYALUE:., :
Common Vo'dng 100 10 33 $ 2,019,0C
Preferred NA NA NA NA $ 0.0(
Provide all fights and restrictions pretaJning to each class of stock.
5. Was the decadent employed by the Corporation? ................................ r'l Yes [] No
If yes, Position Annual Salary $ Time Devoted to Business
6. Was the Corporation indebted to the decedent? ................................. [] Yes [] No
If yes, provide amount of indebtedness $ 8,258,00
7. Was there life insurance payable to the corporation upon the death of the decedent? ..... [] Yes [] No
If yes, Cash Surrender Value $_ Net proceeds payable $
Owner of the policy
8. Did the decedent seJl or transfer an stock in this company within .one year prior to death or within two years
if the date of death was prior to 12-31~827
[] Yes :[] No if yes, i-I Transfer [] Sale Number of Shares
Transferee or Purchaser Consideration $. Date
Attach a separate sheet for additional transfers and/or sales.
9. Was there a wdtten shareholder's agreement in effect at the time of the decedent's death? .... [] Yes ~ No
If yes, provide a copy of the agreement.
10. Was the decedent's stock sold? .................................................. [] Yes ga No
If yes, provide a copy of the agreement of sale, etc,
11. Was the corporation dissolved or liquidated after the decedent's death? ................... [] Yes ga No
If yes, provide a breakdown of distributions received by the estate, including dates and amounts received.
12. Did the corporation have an interest in other corporations or partnerships? ............. r'] Yes [] No
If yes, report the necessary information on a separate sheet, including a Schedule C-1 or C-2 for each interest.
A. Detailed calculations used in the valuation of the decedent's stock.
B. Complete copies of financial statements or Federal Corporate Income Tax returns (Form 1120) for the year of death and 4 preceding years.
C. if the corporation owned real estete, submit a list showing the complete address/es and esfimated fair market value/s' If real estate appraisals have
been secured, attach copies.
D, List of pdncipal stockholders at the date of death, number of shares held and their relati°nship t° the decedent'
E. List of officers, their salafies, bonuses and any other benefits received from the corporation.
F. Statement of dividends paid each year. List those declared and unpaid.
G. Any other information relating to the valuation of the decedent's stock.
(If more space is needed, inse~t additional sheets of the same size)
R -,eoe E×+ SCHEDULE C-2
PARTNERSHIP
DOMMO"W -T" Or
INHERITANCE TAX RETURN INFORMATION REPORT
RESIDENT DECEDENT
FILE
ESTATE OF 0767
Ha~ S Claypool
1, Name of Pa~nership ~N0rthingthn DevAIopm~.nt LP
Address 15 ~=.vh~tIR ~n.rf
City Mechaniscbur~l
2. FederalEmployerl.D. Number 25-1847417
3. Type of Business Development
4. [
Date Businees Commenced 7/1/99
Business Reporting Year 2003
State PA Zip Code 17055
product/Service Real Estate
neral [] Limited ,artner. If decedent was a timited partner, provide init[al inves~nent $ 0.00
: : NAM ; ; OF: NCOME 0~ OWNERSHIP ' ~APiTAt:ACCOUNT
A. Harry S Claypool 49.5 49.5 3,533.00
B. Maybelle L Claypool 49.5 49.5 3,532,00
C. Maybelle L Claypool, Inc 1.0 1.0 1,842.00
D. I
6. Value of the decedent's interest $ 17,344.00
7. Was the Partnership indebted to the decedent? ................................. [] Yes [] No
If yes, provide amount of indebtedness $
8. Was there tife insurance payable to the partnership upon the death of the decedent? ..... [] Yes ~1 No
If yes, Cash Surrender Value $ Net proceeds payable $
Owner of the policy
9. Did the decedent sell or transfer an interest in this partnership within one year pdor to death or within two years if the date of death was
pr[or to 12-31-82?
D Yes [] No If yes, [] Transfer [] Sale Percentage transferred/sold
Transferee or Purchaser Consideration $ Date
Attach a separate sheet for additional transfers and/or sales.
10. Was there a written partnership agreement in effect at the time of the decedent's death? ...... [] Yes [] No
If yes, provide a copy of the agreement.
11. Was the decedent's parthership interest sotd? ....................................... [] Yes [] No
If yes, provide a copy of the agreement of sale, etc.
12. Was the par~ersh p d ssolved or liquidated after the decedent's death? ................... [] Yes [] No
If yes, provide a breakdown of distributions received by the estate, inc ud ng dates and amounts received.
13. Was the decedent related to any of the partners? .................................... [] Yes [] No
If yes, explain Ma?belie L Claypool - Wife of decedent~ Ma?belle L Cia?pool, Inc - 100% of stock owned jointl? by Harry S & Ma?belie L Claypo
14. Did the partnership have an interest in other corporations or partnerships? .............. [] Yes [] No
If yes, report the necessary information on a separate sheet, including a Schedule C-1 or C-2 for each interest.
A. Detai ed calculations used m the valuation of the decedent s padnershtP interest'
B. Complate cop[es of financial statements or Federal partnership Income Tax returns (Form 1065) for the year of death and 4 preceding years.
C. If the partnershipowned real estate, submti a fist sh°wing the cemplate address/es and estimated teir market value/s' If real estate appraisals have
been secured, attach copies.
D. Any other informaticn relating to the valuation of the decedent's partnership interest,
COMMONWEALTH OF PENNSYLVANIA
INV~R[TANCE TAX RE33JRN
RESIDENT DECEDENT
SCHEDULE D
MORTGAGES & NOTES
RECENABLE
FILE NUMBER
ESTATE OF
Harr~ S. Claypool
0767
NI property Jolnt~y-~wned with right of sun~ivorship must be ciia~;,~d on Schedule F.
ITEM
lUMBER
DESCRIPTION
Coventr~ Custom Homes, Inc.
1300 Mountain Laurel Circle
Harrisburg, PA 17110
Unsecured note receivable in
the amount of $8,258 from
Coventr~ Custom Homes, Inc.
valued at date of death at a
zero value and is considered
worthless. The company has no
assets remaining to convert to
cash to payoff this debt.
TOTAL (Also enter on line 4, Recapitulation) $
VALUE AT DATE
OF DEATH
(If more space is needed, insert additional sheets of same size)
3W46AC 1000
SCHEDULE H
FUNERAL EXPENSES &
ADMINISTRATIVE COSTS
CO~L~'~ OF PENN SiRYLNVANtA
FILE NUMBER
"STATE OF 0 7 6 7
Harr~ S. Cla~ool
Debts of decedent must be reposed on Schedule L
ITEM DESCRIPTION AMOUNT
NUMBER
5.
6.
7.
FUNERALEXPENSES:
Musselman's Funeral Home
Funeral expense
Total from continuation pages
ADMINISTRATIVE COSTS:
Personal Representative's Commissions
Name of Personal Representative(s)
Social Security Number(s) / EIN Number of Personal Representative(s)
Street Address
City State __ Zip
Year(s) Commission Paid:
Attorney Fees
Family Exemption: (if decedent's address is not the same as claimant's, attach explanation)
Claimant
Street Address
City
Relationship of Claimant to Decedent
Probate Fees
Accountant's Fees
State Zip
Tax Return Preparer's Fees
TOTAL (Also enter on line 9, Recapitulation)
4,762
1,190
1,000
3,000
$ 9,952
(if more spsce is needed, insert addiUonal sheets of the same size)
SW46AG 1 000
Schedule H part i (Page 2)
Estate of: Harry S. Claypool
Item
No. Description
Amount
2
3
4
5
Rolling Green Cemetery
Burial expense
Rolling Green Cemetery
Buriel expense
United Methodist Women
Reception after funeral
Charles Yocum
Organist
870
200
20
100
Total (Carry forward to main schedule) 1,190
SCHEDULE I
DEBTS OF DECEDENT,
MORTGAGE LIABILITIES, & LIENS
COMMONWEALTH OF PENNSYLVANIA
INHERFrANCE TAX RETURN
RESIDENT DECEDENT FILE NUMBER
- ESTATE OF 0 7 6 7
Harry S. Claypool
Include unrelmbumed medical expenses.
DESCRIPTION
NeighborCare
York, PA
Medicine
pamay Development Co., Inc.
5006 E Trindie Road
Mechanicsburg, PA 17050
Unsecured 6% note payable of
$100,763 of Harry S & Maybelle
/L Claypool plus accrued
~interest of $15,216. Date of
/death taxable value is equal
to $100,763 plus $15,216
divided by 2 = $57,990
TOTAL (Also enter on line 10, Recapitulation) $
VALUE AT DATE
OF DEATH
650
57,990
58,640
3W46AH 1000 (If more space is needed, inset[ additional sheets of the same size)
ESTATE OF HARRY S. CLAYPOOL
SSN: 190-16-2687
DOD: 11/24/2003
PENNSYLVANIA INHERITANCE TAX RETURN
TABLE OF CONTENTS
Document
Return Reference
1. Last Will and Testament
2. Coventry Custom Homes, Inc - valuation
3. Coventry Custom Homes, Inc - 1120 2000
4. Coventry Custom Homes, Inc - 1120 2001
5. Coventry Custom Homes, Inc- 1120 2002
6. Coventry Custom Homes, Inc - 1120 2003
7. Settlement Sheet dated 6/9/04
8. Worthington Development LP - valuation
9. Worthington Development LP - 1065 1999
10. Worthington Development LP - 1065 2000
11. Worthington Development LP - 1065 2001
12. Worthington Development LP - 1065 2002
13. Worthington Development LP - 1065 2003
14. Settlement Sheets dated 4/13/04, 5/10/04, 5/22/03
15. Worthington Development LP - LP Agreement
16. Worthington Development LP - Joint Venture Agree
Page 1, Line 8
Schedule C, Item 1
Schedule C-l, Item B
Schedule C-l, Item B
Schedule C-l, Item B
Schedule C-l, Item B
Schedule C, Item 1
Schedule C, Item 2
Schedule C-2, Item B
Schedule C-2, Item B
Schedule C-2, Item B
Schedule C-2, Item B
Schedule C-2, Item B
Schedule C, Item 2
Schedule C-2, Item 10
Schedule C-2, Item 11
AUG-lg-ZD04 1Z:SBPM FROM-IRWIN & McKNIGHT LAW OFFICES
+?'] T~4gE354
T-36~ POOB/OOg F-EBO
LAST WILL AND TE~TJ~-MENT
OF
HARRY S. CLAYPOOL
I, HARRY S- CLAYPOOL, now of !~37 Monterey Drive,
Mechanicsburg, Cumberland County, Pennsylvania, being o£ sound and
disposing mind. memory, and understanding, do hereby make,
and declare thii to be my Last will and Tes~nen~; hereby revokin~
al! other Wi!i~- and Codicils previously made by
- ~'~ ' ' paymen~ of al! my jus:
ITEM I: ~ ~l_ec~ ~na~
expenses of my las~ i!lness~ funeral expanses, and ~he costs of
~' ~ ~ my estate from mv estate as soon ~ter my death as
a~_..ls-e--ng
convenient!v may be done- ~ ~
- - =6.
.._M II: = give, devise =~d be~uea~h~l ~nem-~-
residue and rez:.%inder of mv estate, of every ~a~ure wherever
si~ate~ roger' .ar with a~ ~ ~ ~-~=~c- mo!~cles reo~ ~n~ .
s'oouse, MAYBEL~ E L CLAYPOOL. .~ m
ITEM III: I direc~ thac any and al! taxes that may be
_nc_ud_..g =~ ~ ~n~eri~anca~
amsessad in consequence of my death, ~ 1 , ¢- .......
estate an~ .~=r. ~s~ tmxes imposed u~on my estate passiD.~ under my
will or othe~rise, shall be paid out of the principal of my
residua~ esta~.~ as a part. of uhe expense of the administra:ion
my estate.
1
AUG-19-ZO04
1Z:EBPM FRObt-IRWIN & McKN[GHT LAW OFFICES +?lTZ496354 T-aG9 P.OO?/OD9 F-560
%
iTEM Iv: v authorize =~c empower my personal
representative =o compromise, adjusu, release and discharge in such
maP,.er as my personal representative may deem proper, all debts and
claims owed by or uc me or my Estate; uc se!l~ lease or exchange au
oub~c or o~vate sale or in such ~anner~ at such prices, and upon
such terms of credi~ or otherwise~ as my personal represen~au±ve
~= deem DroDer, all or any Dar~ cf my Dropertv~ real or personal;
:c exec ute, acknowledge and deliver instr~uen~s of conveyance,
including deeds in fee simple; to borrow money for the purpose of
paying esuate, inheritance or cuber ~axes which are required to be
paid and to secure any such loans by pledge or mortgage of ail or
any par~ cf my p~oper~y and ~o ex~cu~e ~he necessa-~_~ instruments ~o
~ ~ ~ . estate in kind or pa_--y
csr~y cuu such powers~ to d_st__bu-e my w~ in
money or partly in kind, and to de~ermine ~he fair value at which
any property so distributed in kind shall be received by the
distributaes~ to conduct any business in which I have an interest
at the time of my death, for such period as my personal
representative may deem proper, power to borrow money and pledge
a~sets of ~ha business and the power to do all other acts that I,
in my !ife~ime~ could have done~ to delegate such power to any
partner~ manager or employee without liability for any loss
occurring therein and to organize a corporation to car~t on said
business as capital to such corporation and accept stock in the
corporation in lieu thereof and hold such s~ock for ~he uses c~
u~is my will, and to vote said snook or sell ~he sa~e as ~o my
2
~U~-19-ZO04 1Z:eSPM
FROM-IRWIN & McKNIGHT LAW OFFICES
+T172496354
T-3S9 P.008/009 F-560
persona! represeneative may seem Dost; to re~ain al! stocks,
assets, bonds and investments owned by me witkou~ being confined
wD.a~ is known as legal investments; to execute any options
pur:hase, to apply for stocks] bonds or other investments,
p%£chase or otherwise acquire rea! estate and to execute the
powers thereover as hereinbefore provided, to re~ain indefinitely
any par~ of my assets, rea! or personal, which is or may become
unproductive or to make sale thereof~ 'to pay carrying charges and
expenses of the property out of other principal or income of my
estate; to invest and reinvest in al! forms of property without
restriction Co investments authorized for pennsylvania fiduciaries,
as my personal representative deems proper~ without regard to
principle sf diversification cr risk3 tO exercise any law-given
option to treat administrative expenses either as.income tax or as
estate deductions, without regard to whether the e~penses were paid
from principal or income. The ~owers herein conferred shall be
my na~ed personal representative and ail successors thereto and
shall be in addition and not in limitation of other powers
conferred on se. id fiduciary.
Any and all paymen~ or pa~mea~s of any su~ or sums~ whether in
cask cr in kind and whether for principal cr income payable tc any
beneficiary shall be made upon the sole receipt of the respective
beneficiary ~o whom the payment is made and free from anticipation,
alienation, assignment, attach~en:: and pledge and free from
control by the creditors of any such beneficiary.
3
AU~-18-ZO04 IZ;SgPM FROM-IRWIN & McKNI~HT LAW OFFICES
+71
iTEM V: All shares of principal and income hereby given
· £A&i! ~e f_=e from anticiDa=ion, aseignmen=, ~!edga or ob!igatign
o~ .k~ beneficiaries and any of'them and shall not be subject to
any e~ecu~ion cr attac~nuent, !e~3 or sequestration or other claims
cf the creditors cf said beneficiaries or any of them.
ITEM VI: I nominate, constitute and appoint my
spouse, MAYBELLE L. C~%YP00L and my daughter, CATHY I. CLAYPOOL, or
=%e survivor of them, as the sole Executrlce. of this my Last will
and Testament, to
I~ WITNESS WMEREO¥, _r,
Last Will and Tes~-ament,
serve without bond.
~ARRY S. CLAYPOOL, have, to this my
set my hand tkis ~ day of
~.'ARRY S? CLAYPOOI~JF
(SEAL)
Signed, sealed, ~ublished and declared by MARRY S. CI~gPOOL,
the above named ~estator on the __ ~/ ~ daF of
~/~.~,~ , 20~, as for his Last will aha Test~men~
in tee pre,hca of us, who, ~n his presence, and in the presence
of each other, have~ at his reques~, subscribed our names as
wiunasses hera'_o.
4
Coventry Custom Homes, Inc.
Balance Sheet
November 24, 2003
ASSETS
Assets
Cash
Accounts receivable - rent
Inventories, at cost
3703 Lyland Drive; Mechaniesburg, PA
Other Assets
Total Assets
December 31,
2003
$
4,000
276,610
$ 280,610
Fair Market
Value at Date
Adjustments of Death
4,000
I 980 277,590
980 281,590
LIABILITIES AND PARTNERS EQUITY
Liabilities
Accounts Payable
Security deposit
Notes payable - officers
Note Payable - J Myers & Sons
Total Liabilities
5,534
2,000
9,961
268~000
$ 285,495
5,534
2,000
2 (9,961)
268,000
(9,961) 295,456
Stockholders Equity
Common Stock
Retained Earnings
Total Stockholders Equity
$ 1,000
(5,885)
$ (4,885)
1,000
10,941 5,056
10,941 6,056
Total Liabilities and Stockholders Equity
Notes:
1 - Adjustment to fair market value based on subsequent net sales (see copy
of settlement sheet $303,000 - 25,410)
2 - Adjustment to write-off officer loans because of lack of funds
$ 280,610
980 279,630
Page 1 - 2
Schedule C-1
Closely-Held Corporate Stock Information Report
Estate of Harry S Claypool
PA File Number
21-04-0767
Coventry Custom Homes, Inc.
ADDITIONAL INFORMATION
Item:
A Detailed Calculations see Tab-2
See attached
B Tax Returns see Tabs 3-6
See attached returns 2000-2003
C Real Estate see Tab-7
See attached settlement sheet
D Principal Stockholders
% Shares
Stockholders Held Relationship
1 Harry S Claypool 33.33 Decedent
2 V Richard James, Jr 33.33 Son-in-law
3 Diane James 33.34 Daughter
E List of Officers
Officer Title Salary
1 Hany S Claypool President None None
2 V Richard James, jr Treasurer None None
3 Diane James Secretary None None
Other Benefits
F Statement of Dividends
No dividend have ever been declared or paid since the compay started into business
G Other Information
While the Company has been in business since 1997, its last construction activity was in 2000.
During 2000 two spec homes were built, one was sold in 2001 and the last in 2004. No other
construction activity has been conducted during the past four years. All funds have been used to pay
debt services or other charges during the past few years. The last settlement in 2004 provided less
than $1,000 in cash which will be used to payoff old outstanding bills. It is the intent of the owners
to close and liquidate the company by year end. There is nothing anticipated to be received fi.om the
liquidation and for that reason the officer loans have been written down to net realizable value of
Page 2 - 2
U.S. Corporation income Tax Return O~B No.
1120 - ' ' 2000
~ C~ ff ~ U~ N~ No., ~ ~d ~ ~ ~ ~. ~l~wn, ~te, ~d ZIP ~ ~ B ~loy~ ~:~- -~
1 i.~chForma~) ~ IRS CO~Y CUS~O~ ~O~S Z~C 23-2920818
~ ~r.on.~,.~. pd~ 3259 WI~ PEPPER cO~T
~.~...=,.~,- ~ ~ DELTONA FL 32725-3000
] Rn~ fearn (S) ~ Chsn~e of addr~ $ 537 r 453 ·
la ~o~ r~ 2
4
5 Int~ ............................................................ 6
6 ~o~ renm ............................................................... 7
7 ~o~ roy~ .................................................................... 8
8 ~ gan ~ I~ (.~n ~um D (~ 1~)) ......................................
10 ~ I~ (~ i~~m -- ~ m~um) ........................................... 10
11 Tealln~m&Addll~3Wou~hl0 .................................................... ~ 11 0.
12
I 12 ~n of o~ (~u~ E ~ 4) .................................. 13
[ 13 ~ ~d w~ ~ ~ ~) ...............................................
) T _ ~ 17 319.
20 ~pr~n (~ Fo~ } ................................. I ~:~
I O 21 ~r~nd~on~Asnd~w~eonre~rn ...... ~21a~ 22
~ N 22 ~p~n ...........................................................................
[ ~ :~ ~~ ............................................................. 2~ ~o2.
F S 2~ N ~du~, ~ ~ 27 ffomli~ 1
0 29 _ : a Net o~ ~ {NOL) ' ( ' ' ) .........
R b S~N ~du~m (~u~ C, li~ ~) ................... ~29b~ 2~ O.
T 31 To~(~umJ,~11) .......................................................... 31 0.
32C~( ) da.~ 32d
C
8 T~ ~ ~ ~ 7~ ................................... 32e
g ~edA for F~ ~ on ~ (-"~ ~ 4136). ~ i~n~ ...... 32g 32h 0.
~ 33 ~t~ ~ ~n~ (~ i~). C~ ~ ~ ~ b ~ ...................... ~
33
T 34 T~ ~ ~ ~h ~ ~ ~ ~ of ~ 31 ~d ~, ent~ ~unt o~ .................. 34 O.
36 Ent~ mu~ of li~ 35 ~u wan~ Cr~ to ~1 ~amat~ ~ ~ R~n~ ~ 36
Prep~'~s /- . {~.~,e - 0/ len~loy~ III POO~49482
Pre-arer's- , 'or / ' JONES ~CCO~NTING SERVICES ~EIN 25-1668707
~ m~ s n~ [ k
Use Only youm~ff-~ye~,~ll-C NORTH CHEST~T STREET ~P~. 7174323746
~ addr~.~dZlP~ r DILLSBURG PA 17019
Pap 2
Form 1120 (20O0)
1~9~1p~] Cost O Goods Sold (See Instruc~ons.) ~;;~
~ 272,709 ·
2 Purchases ....................................................................... 51~ 675 ·
3 Coat o! labor .....................................................................
4 Addi~onal sec~on 263A coats (attech schedule) ........................................... 102 r 100.
5 Oth~ costa (attech ~chedum) ......................................................... 507~ 203.
6 Total Add arms 1 through $ ......................................................... 507r 203.
7 Inventm7 at end of Year' ................................................ ............. 0
8 C.x~t of ~ sukL ~b~act line 7 kom line 6. Enter here and on line 2, page 1 ................ ·
ga Check all methods used l~ valuing doalng inventory:.
~ ~ Coat as de~c~bed in RegulaJone section 1.471-3
~ ~ ~w~ of ~ ~ ~ ~ ~ in R~ul~ ~n 1,471~
b C~ ~ ~e w~ a ~wn of ~b~ ~ ~ ~ in R~ul~ ~n 1.471-~c) ........................ ~ ~
C C~ ~ ~ UFO i~ento~ ~d w~ a~pt~ ~b ~ y~ I~ ~y ~ ~ c~, ~h ~ 970) .... >
d If ~F~inw~t~meth~dwuus~df~rthi~ente~p~r~n~(~r~m~)~f~i~inv~nt~mp~t~uad~rL~F~ I ~ ~
e ~ ~0~ ~ ~Odo~ ~ ~uir~ I~ r~, ~ ~ m~ of ~n 2~ ~p~ m ~ ~rs~n? ................ ~ Y~ ~ No
f w~ ~e ~y ~ in ~t~ qu~, ~ ~ v~ua~ ~n o~ and ~ inven~ U ~,'
ansan .. . ........................................... ~Y. ~No
;.SchedUle Gil Dividends and Special Deductions (see (a) Dividends (b) % (c) Special deduc~ona
irons.) reOeiVed (z) x (b)
I Divk~ends h'om lesa-than-20%--owned derneat~c corpora~ons that are sub,act
to ~ 70% deduclten (other than debt-financed stock) ................... 70
2 Dividends from 20%-er-rnore-owned dorns~c corpora~ons ~at are subject
to the 80% deduc~on (other than debt-flnancecl stock) ................... 80
4 Dividends on certain prefen'ed stock of les~-than-20%-owned public utJli'des.. 42
5 Dividends on certain preferred atoc~ of 20%-or-more-owned public utUit~e~ .. ~8
6 Dividends from Icoa-than-20%-owned lereign corpors6ons and oe~aln FSCa
that are subject to the 70% deduction ................................ 70
7 Dividends from 20%-or-more-owned fore,jrt corporations and carlaJn FSCs
10 Dividends from domestic corporations retired by a small b~siness inveslnmnt
company operalJng under the S4T~J Bus~ness Investment Act o11958 ........ 100
11 Dividends from certain FSCs that are subject to 100% deduction (~.~e, ~NcX~)) 1(30
12 Dividsnds from aJfiliated group members subject to 1oo% ded. (~, ~3~X3~ 100
18 Deduclton lor d/vidends paid on cortaJn prefened atock o! public u~ea ..... ~ ................ :~ ............................... ~:':' ~!~[[!~{~i~::~ii!~i 0
20 Total special deduct~ona. Add lines 9.10. 11.12. and 18. Ente~ here and on lies 2gb, Pa!~e 1 .............. I, 0
I Schedu!e E I Compensation of Officers (see ins~c~ons tot Une ~ page 1.)
Note: Complete Schedule E only If teteJ recalpts 0ins la plus ~nes 4 through 10 on page 1, Form 1120
(a) Name of officer
1
HARRY S CLAYPOOL SR
V RICHARD JAMES JR
DIANE JA/{ES
2
3
4
CAA
Co) Social security (c) pmcent ol I percent qf comora~on (f) Amount
Ifrne dsvoled to ' stoc~ owhecl
number business (d) Common (e) Pre!erred of compensa~on
L90-16-2687 30.00% 33.33°~
L61-34-006~ 30.00% 33.33~
L6!-34-132c. 30.00% 33.33°/~
% · %
0,
~edule A and et~ewbere on m~m .................................
Total compensa~on o! otr~cera..
Compensation of off, al cJalmed on
Subtract line 3 from line 2. Enter the result here and on line 12, page 1 .......... ... ........................ 0.
0 112012 NTF32550 Copyright2OOOGrl&tlant/INelooLP-Forml$ottwMeOniy Form 1120 (2ooo)
(2ooo) Pe~ 4
3
~Schea~.~'~l Other Information (see ins~uc~ons.)
I Chac~ n-~Utod o! ~un~: a U ~h
2 ~ ~ i~ ~d ent~ ~:
a ~a~ ~v~ ~.~ 233200
3 N~ end ol~ ~ ~, ~d ~ ~r~n own,
~n 2~(c).) ................................
H ~,' a~h · ~du~ s~ng: (a) n~ ~d
~y~ i~n~on num~ (EIN), ~) p~nta~
owed, and (c) t~a~ i~ or (~) ~fore NOL and
~ ~duc~ of ~ch ~ra~n for ~ ~ yam
endi~ ~ ~ ~n ~ur ~ ye~.
4 Is ~ ~rs~n a ~d[~ in ~ ~li~ group or a
pmem-~di~ ~o1~ group? ................
H ~,' en~ n~ ~ EIN of ~ p~e~ ~r~n
At the end of the tax year, did iiny individuei~ per[nership.
corpora~on, estate, or ~st own, directJy or indirect/y,
.50~.~ or ~e of the corpora~on's young stock? (For nJles
of &~ibu~on, see section 267(c).) ..................
exchange for stock) in excess of the corporst~on's
currenl and accumulated e~rnings and profits? (See
sections 301 and 316.) ...........................
e
fe~ No ;t *Yes,' f~e Form 54S2. Corporate Reporl of Nondivid~lnd yea NO
5~[ corpor~on nd on Fona 8~1. AlliU~IJOnS Schedule, Ior ~:~:
:[:~:~ each su beidiary.
7 ~t any ar'ne dudng the tax year. did one foreign person
own, directly or in.racily, st least 25% of (a) the tota~
:~:~;~:~; of the corporBbon?..
a Enl. percentage owned J,.
Foreign Corporabon Engaged in a U.S. Trade or B~s~ne~,
~ Enle~ numbe~ of Forms 5472 attached I~ :~ ....
iii~i i 8 Chac~ this box i~ the corporm~on issued publicly offered
Informa~on Rst~rn for Pu~icty Ofle~ed Origin,,r Issue ;~:!:i~:: :<~::'i~:~
~ii~i ~=::eiecUng to forego the carrxbac.k period, check be,'a.. · 0
~i~ 12 Enfortbeav~la~eNOLcarryovorlrompdortaxyaam
~:: (Do not reduce it by any deduct]on on line 29L)
Note: ff the corporst]on, st any '~rne dudng the tax year. had assets or operaled a boeine, s~ in a foreign county or U.S. pos~on, It may be
P,~e 4
Note: The coq3oratJon is not required to complete Schedules M-1 & M-2 if the totaJ assets on line 15, col. (d) ol Schedule L are ~ than $25,000.
?
ISCh~le M?li{ Reconciliation of Income (Loss) per Books With Income per Return (SeeinsmJctions.)
not ~ec.o r dll ¢1 0~1 bookl this ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
9 Acid line~ 7 anti 8 .................. 0.
Add lines I ~hrou~lh 5 ................. --~. t 22'1 10 Ilx:ome (,,~ 2a, p~g, ~) -- line 6 less line ~ --]. f 223..
I$~lt~ii!M~2~ 'Analysis of Unappr }rlated Retained Earnlnc, le per Books (Line 25, Schedule L)
1 Bamnoeatbe~ioningof~,ear ........ ::. 1,674 S D~G~: . C~h .............
2 Neti~)~ks ........... -1,221. b ~ .............
3 ~ I~e~: ..... : ............................. ~.~.:::<.:~:~:....::..::: C ~o~ ..........
7 Add~5~d8 .................. 0
4 Add IJn~ 1,2, and 3 ................. 453 8 B~a~ at end of ~ Oi~ 4 I~ line ~ 453
CAA 0 112034 NTF 32562 Copyright 2000 Gr,att~ndlNelc, o LP - Forms Software Onty Form 1120 {2ooo)
Line : COVENTRY CUSTOM HOMES INC ID # 23-2920818
:tachment to Form 1120r Sch A,Line 5 - Other Costs AMOUNT
.iAL ESTATE TAX
~T ~.'KEST
~OFESS IONAL
~SURANCE
JTSIDE LABOR
ame: COVENTRY CUSTOM HOMES INC
ttachment to Form 1120~ Line 26 - other Deductions
Total
ID #
422.
46r709.
2~000.
1~294.
51~675.
102~100.
23-2920818
AMOUNT
675.
ROFESSIONAL 227.
FFICE SUPPLIES Total 902.
1120 U.S.CorporationIncome Tax Return eo
For calnnclar ynar 2001 or tax year
[~t =f the Tmm~u5' beginning ,ending 2001
A Check ff e:
Name
CO~ENTR¥ CUSTOM HOMESr INC.
Number, street, and room or sure no. (If a P.O. bo~ sen page 7 of inst~ctions.)
1300 MOUNT LAUREL CIRCLE
23-2920818
07/31/1997
~;~. ,nc. 1.441-~ C~y or town, state, and ZIP code D Total ~.~sets (see p~ 8 of
H~ PA 17110 Ins~ons;
E Check a In,Iai tatum Final tatum $ 2 76.610.
2 Cost of goods sold (Schedule A. line 8) ......................................................................................................... 2 306r651,
3 Gross profit. Subtm~ fine 2 from line lc ......................................................................................................... 3 3r349,
4 Dividends (Schedule C, line 19) .................................................................................................................. 4
· 5 Interest 5
6 Gross rants 6 1 7 0 00
7 Gross roya~ies 7
8 Cap~ gain net income (aEach Schedule D (Form 1120)) ................................................................................. 8
g Net gain or (loss) from Fo~ 4797, PeA II, line 18 (a~ach Fo~ 4797) ..................................................................
10 ~her income (a~ch schedu e 10
11 Tetalin~ome. Add fines 3 through l0 ...................................................................................................
12 Compensation of officem (Schedule E, line 4) ................................................................................................ 12
1~ Salaries and wages (less employment credits) ................................................................................................ 13
14 Repaim and maintenance 14
15 Baddeb~ 15
16 Rents 16
17 Taxes and ii~nses ~ S~A~. i .......... 17 lr~11,
18 Interest 18 14 r 525.
lg Charitable contributions
~ 20 Depreciation (a~ch Fo~4562) 20
~ 21 Less depreciation claimed on Schedule A and elsewhere on tatum ..................... 21a
~ 22 Depletion 22
= 23 Adve~ising 2~
24 Pension, proffi-shadng, etc., plans 24
25 Employee benefit programs 25
26 Qher deductions (a~achschedule) SEE STATENENT 2 26 5 r 2 6 8,
27 Tota~deduttlons. Add iines12 through 26 ............................................................................................. ~ 27 21r20~,
2g Less:a Netopemtingloss(NOL)dedu~ion ~~ 3 12ga
b SDeclaideductions (Schedule C. line 20~ ..........................................~ 2gb 29c
30 Taxable Income. Subtm~ line 29c from line 28 30 <8 5 5.
31 Totaltax (ScheduleJ, line11) ................................................... :f;F¥ ~, ~;~ :~¢~ ~ ~:~:~.~:~::~: ~1 O.
b 2001 estimated tax paymen~ 32b ' '~ .... ~ ........................................
= on Fo~ ~ ........................... 32~ ~ I d Bal ~ 32d ...... ~::
~ e T~ depos~ed with Form 7004 ................. ~ ................................................... 32e
~ f Cred~ for ax paid on undistributed capital gains (a~ch Form 2439) 32f ~::
~ g Cred~ for Federal ~ on fuels (aEach Fo~ 4136) ............................................. 32g 32h
33 Estimated ~x penal. Check ~ Fo~ 2220 is a~ched ........................................................................... ~ ~ 33
34 Tax due. If 0ne 32h is smaller than the total of lines 31 and 33, enter amount owed 34 0.
35 0verpayment. If line 32h is larger than the total of lines 31 and 33, enter amount ove~aid ....................................... 35
36 Enter amount of line 35 you want: Crsdlted to Z002 estlmated tax ~ RoUnded ~ 36
s.lf-*=p~Oym ~l 178-38-3454
~repare~s ~, ..... WAGGONER, FRUTIGER & DAUB s~ 23 ~1583249
Jse0nty (o~yo.-,f ~
add~s,s~f'empl°y~)'and 006 ~ ~[~D~ ~D SUZ~ 200 .~.~, (7[7)506-[222
zIP~U, ' MECH~ICSBURGr PA 17050
01o02-O2 JWA ~ See Instructions for Paperwork Reduction Att Nat[ce. 1 Form 1120 (2001)
'360819 706230 15650" 2001 .dRddfl
COVENTRY CUSTOM HOMESr INC.
I~~ COst of Goods Sold (Soo pa~e 14 of instructions.)
23-2920818 Page2
Inventory at beginning of year ...........................................................................................................................
Pomhases ......................................................................................................................................................
Cost of labor ...................................................................................................................................................
Addk'ional section 263A costs (attach schedule) ......................................................................................................
Other costs (attach schedule) ...........................................................................................................................
Total. Ad~ lines 1 through 5 ..............................................................................................................................
Inventory at end of year ....................................................................................................................................
Cost of goods sold. Subtract line 7 from line 6. Enter here and on line 2, page 1 ............................................................
23 306~651.
306~651.
306r651.
Check all methods used for valuing closing inventory:
(i) [--J Cost as described in Regulations section 1,471-3
(ii)[---1 Lower ol cost or market as described in Regulations section 1,471-4
(iii) E~ Other (Specify method used and attach explanation.) ~
Check ff there was a writedown ct subnormal goods as described in Regulations section f.471-2(c) ............................................................... ~ E~
Check if the LiFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) ...................................................... · ~
Ifth. LIFO inventory method was used for this tax year, enter percentage (or amounts) of I
closing inventory computed under LIFO ............................................................................................................... 9d
If property is produced or acquired for resale, do the rules of section 263A apply to the corporefion? ............................................. ~ Yes ~ No
Was there any change in determining quantities, cost, or valuations between opening and closing inventory?
mation ~ Yes ~ No
~......~<:... ~ ::....:..< .......... (a) Dividends (h) % (c) Special deductions
I~SI=~I~!~G~I Dividends and Special Deductions received
1 Dividends from less-thsn-20%-owned domestic corporations that are subject to the
70% deduction (other than debt-financed stock) ...................................................... 70
2 Dividends from 20%-or-more-owned domestic corporations that are subject to the
80% deduction (other than debt-financed stock) 80
42
48
6 Dividends from lesa-than-20%-owned foreign corporations and certsin FSCs that ars
subject to the 70% deduction ................................................................................. 70
7 Dividends from 20%-or-mom-owned foreign corporations snd cortaln FSCs ti~at are
subject to the 80% deduction ................................................................................. 80
8
g Total Add lines 1 through 8 ................................................................................. .........................
10 Dividends from domestic corporations received by a small bus'ness investment
company operating under the Small Business investment Act of 1958 ...........................
........................ ..... $: :~: '~:~ : ::::: ::: i:':: :~ :~:~ :~:i: ::::::::::::::::::::::::::::::::i
....... ~::~:~!:
15 Foreign dividend gross-up (section 78) ::~;:: :~:, .._.,'.i..?..
18 Deductionfordivldondapaidoncertainprefsrredstockofpublicutilities ........................ '=:'::"' "~ ........................... ~:::~:::~:::~:::=
19 Total dividends. Add lines 1 through 17. Enter here and on line 4, page 1 ............... ~' ::::::::::::::::::::::::::::::::: :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
20 Total special deductions. Add lines 9110, 11~ 12~ and 18. Enter here and on line 29b, page 1 ............................................... ·
~:~ ~ Compensation
(a) Name o1 officer
1 HARRY S CLAYPOOL SR
V RICHARD JAMESr JR
DIANE M JAMES
DIANE M JAMES
(b) Social security (c) Percent of Percent of corporation
number time devoted stock owned {f) Amount of
to business (d) Common (e) Preferred compensation
L90-16-2687 PART 33.33%
L61-34-0068 PART 33.33%
[61-34-1329 PART 33.33%
[61-34-1329
on return ................................................
2 Total compensation of officers
3 Corepensation of officere claimed on Schedule A and elsewhere
4 Subtract line 3 from line 2. Entertheresulthereandonline12~page1 ................................................................................
me~ 2 Form 1120 (2001)
m-o2-02 JWA
]9360819 706230 15650 2001.08000 COVENTRY CUSTOM HOMES, INC. 15650 __1
Formtf20(200t)~COVENTRY CUSTOM HOMESr INC. 23-2920818 Fape8
Tax Computation {Sea page 16 of instmcUons.}
1 Check ff the corporation is a member of a controlled group (sea sections 1561 and 1563) ................................. · --
Impottant: Membem of a controlled group, see instructions on page 16.
2a if the box on line 1 is checked, entsr the corporation's sham of the $50,g00, $25,000, and $9,925,000 taxable
income brackets (in that order):
Enter the corporation's share of: (1) Additional 5% tax (not more than $11,750)
(2) Additional 3% tax (not mora than $100,000)
income tax~ Check ff a qualified pemonal service corporation under section 448(d)(2)
(see page 17) ....................................................................................................................................
AIls motlve minimum tax (attach Form 4626) .........................................................................................................
4
5 Acid lines 8 and 4 ......................................................................................... , ....................................
Sa Foraign tax cradit (attach Form 1118) .................................................................. 6a
h Possessions tax cradit (ottach Form 5735) ............................................................ lib
C Check: I---'1 Nonconventional source fuel credit ~ QEV credit (attach Form 8834) I:::~:i~::
d General business credit. Check box(es) and indicate which forms are attached. ~ii~i
Form 3800 Form(s) (specify) · ~ /
ed
e Credit for prior year minimum tax (attach Form 8827) ............................................. L fie
f Qualified zone academy bond credit (attach Form 8860) .......................................... / 6f
? Total credits. Addlines 6a through 6t ..................................................................................................................
8 Subtract line ? from line 5 .................................................................................................................................
g Personal holding company tax (attach Schedule PH (Form 1120)) ...........................................................................
10 Othertaxes. Chackiffrom: ~-1 Form4255 r--] Form86'11 r---I Form8697
~ Form 8866 ~ Other (attach schedule) .............................................
Total tax. Add lines 8 th rou~h 10. Enter here and on line 31, page 1 ....
of instructions.
11
{~E,~.~r.~:~ :t Other Information,
I Checkmethod of accounting: s [----I Cash b ~ Accrual
S ~ Other(specify)·
2 See page 21 of the instructions and enter the:
a Business activity code no. · 2 3 3 2 0 0
b e~.~....,~vl~ · HOME CONSTRUCTION
c n,~..=o~.,~i~ · HOME CONSTRUCTION
8 At the end ofthe tax year, did the corporation own, directly or
indirectly, 50% or more of the young stock of a domestic
corporation? (For miss of attribution, see section 267(c).) ......
If"Yes,' attach a schedule showing: (al name and
employer identification number (EtN), (b) percentage owned,
and (c) taxable income or (loss) before NOL and special
deductions of such corporation for the tax year ending with or
within your tax year.
4 Is the corporation a subsidiary in an affiliated group or a
parent-subsidiary controlled group? .................................
If"Yes,' enter name and EIN ortho parent corporation ·
At the end of the tax year, did any individual, paTtnsrship,
corporation, estate, or trust own, diractly or indirectly,
50% or more of the corporation's voting stock? (For rules
cf attribution, see section 267(c).) ....................................
If "Yes,' attach a schedule showing name and identifying
number. (Do not include any information already entered
in 4 above.) Enter pementsge owned ·
During this tax year, did the corporufion pay dividends (other
than stock dividends and distributions in exchange for stock)
in excess of the corporation's current and accumulated
earnings and profits? (See sections 301 and 318.) ...............
If'Yes," tits Form 5452, Corporate Repo~t of
Nondividend Distributions.
If this is a consolidated return, answer here for the parent
corporation and on Form 851, Affiliations Schedule, for
each subsidiary.
7 At any time dudng Uqe tsx year, did one foreign person
own, directly or indirectly, at least 25% of (al the total
voting power of all classes of stock of the corporation
entitled to vote or (b) the total value of all classes of stock
of the corporation? ............................................................
If "Yes,' enter: (a) Pementsge owned ·
and (b) Owner's country ·
c The corporation may have to file Form 5472, Information
Return of a 25% Foreign-Owned U.S. Corporation or a
Foreign Corporation Engaged in a U.S. Trade or Business.
Enter number of Forms 5472 attached ·
Check this box ff the COrporation issued publicly offered
debt instruments with original issue discount ............ · ~
If checked, the corporation may have to 1lie Form 8281,
Information Return for Pubitcly Offered Original issue
Discount Instruments.
Enter the amount oft. ax-exempt interest received or
accrued during the taxyear · $
0 Enter the number ot shareholders at the end of the tax
year (if 75 or fewer) ·
11 If the corporation has an NOL for the tax year and is
electingtoforegothecarrybackperiod,checkhare ... · ~--~
If the corporation is filing a consolidated return, the statement
required by Regulations section 1.1502-21{b)(3)(i) or (ii) must
be attached or the election wiil not be valid.
12 Enter the available NOL carryover from prior tax years
{Do not reduce it by any deduction on line
29a.) · $ lr221.
Note: If the corporation, at any time during the taxyear, had assets or operated e business in a foreign country or U.S. possession, it may be required
to attach Schedule N (Form 112D), Foreign Operations of U.S. Corporations, to this return. See Schedule N for details.
No
X
~2~ 3 Form 1120 (2001)
o~-~3-02 JWA
09360819 706230 15650 2001.08000 COVENTRY CUSTOM HOMES. INC. 15650 1
b Loss allowance for bad dobts ..................
3 Inventories .......................................... -- 507 276,610.
4 U.S. g ovammont obligations ..................
§ Tax-exempt securities ...........................
7 Loans to shareholders ...........................
8Mortgage and real estate leans ..................
O~er inve~nent~ (Att, SCJ1.) ........................
1Da Buildings and other depreciable assets
b Less accumulated depreciation ...............
11a Depletable assets
b Less accumulated depletion .....................
12 Land (net of any amortization) ..................
13a Intangible assets (amorUzable only) .........
b Less accumulated amortization ...............
14 Other assets (Att. Sch.) ........................ 2 7 6 f 6 1 0 .
15 Total assets .......................................
Liabilities and Shareholders' Equity
16 Accounts payable .................................
19 Loans from shareholdem ........................
21 Other 0abilities (Att Sch ) ~.~_...-~...
22 Capitalstock: a Preferred stock ...............
b Common stock ............... 1 ~ 000 ·
23 Additional paid-in capital ........................
24 Approprlatad(attac~s=hedUle) ..................... <402 .>
25 Retained earnings- Unappropriated .........
26 equit~ (st~ch s~hedu e) .............................. )
27 Less cost of treasury stock .....................
28 Total liabilities and shamh olde rs' 537
Note: The corporation is not required to complete Schedules M-1 and M-2 ffthe total assets on line 15, column (d) of Schedule L
are less than $25~000.
iiiiill Income )er Books With Income per Return
6,012 ·
268,000 ·
276f610.
Net income (loss) per books < 8 5 5 · >7 Income recorded on books this year not
8 Deductions on this tatum not cha~ed
g Ad~ lines 7 and ~ .......................................
<855
Add lines 1 through 5 ................................. ~ 8 ~ 5. ~0 Income (line 28, page 1} - line 6 less line ~
Retained Earnin ~er Books (Line 25~ Schedule L)
1 Balsnceatbeginningofyear ..................... 453 5 Distributions: a Cash ..............................
2 Net income (loss) per books ..................... < ~5 5 > b Stock ..............................
3 Otherincreases (itemize): ::: :~ :~: ::: ::'::::' "" '~ '~"~::~:'~'
· ~ ............................ 6 Otherdacroases(itemize}:
7 Add lines 5 and 6 .......................................
4 Add lines 1.2, and 3 .............................. ~4 0 2 · >8 Balance at end of year (line 4 lass line 71 . < 4 0 2,
111(~1 JWA 4 Form 1120 (2001)
no'~npl q 7d~9qd 1R~Rd 9nB1 nRnnn ~'nv'~'~m~¥ C'Tln~nM Rn~.q. T~C. 1 565n
Name:COVENTRY CUSTOM HOMESr INC. I.D. Numbar 23--2920818
Income (L_~_-~) From Other Rental Activities
I Show the kind and location of each rental property.
A
3703 LEYLAND DRIVE MECHAIqICSBURG PA 17050
B
C
Rental Income
2 Gross rents ....................................
Rental Expenses
Advertising ....................................
4 Auto and travel ..............................
$ Cleaning and maintenance ..................
Commissions .................................
7 Insurance .......................................
8 Legaland otherprofessionalfees .........
g Interest ..........................................
10 Repairs ..........................................
11 Taxes .............................................
12 Utilities ..........................................
13 Wagesand salades ...........................
14 Depreciation ....................................
15 0thor(list} ~'
16
Properties
A B C D
17
833 ·
Total expenses for each property.
Add lines 3 through 15 .......
17 Total gross rents. Add gross rents from line 2, columns A through D .................................................................. ......... 17
18 Total expanses. Add total expenses from line 16, columns A through D ........................................................................ I 18
19 Net gain (loss) from Form 4797, Part Il, line 18, from disposition of property from other rental /
activities ......................................................................................................................................................... ~ 19
/
20 Netincome(Ioss)fromotherrental(s) .................................................................................................................. / 20
17r000.
18,075 .
<1r075 .>
COVENTRY CUSTOM HOMES, INC. 23-2920818
~RM 1120 TAXES AND LICENSES STATEMENT 1
:SCRIPTION AMOUNT
LES FROM RENT AND ROYALTIES 1,411.
)TAL TO FORM 1120, LINE 17 1,411.
)RM 1120 OTHER DEDUCTIONS STATEMENT 2
~SCRIPTION AMOUNT
kOFESSIONAL FEES
~SURANCE
~ILITIES
DWING
EAL ESTATE TAXES
~HER RENT & ROYALTY EXPENSES
DTAL TO FORM 1120, LINE 26
375.
1,306.
905.
325.
218.
2,139.
5,268.
NET OPERATING LOSS DEDUCTION STATEMENT 3
AX YEAR
LOSS SUSTAINED
LOSS
PREVIOUSLY LOSS
APPLIED REMAINING
2/31/98 845.
2/31/00 1,221.
845 ·
OL CARRYOVER AVAILABLE THIS YEAR
e
1,221.
1,221.
.CHEDULE L
OTHER CURRENT ASSETS
STATEMENT 4
~ESCRIPTION
3THER ASSETS
POTAL TO SCHEDULE L, LINE 6
BEGINNING OF
TAX YEAR
END OF TAX
YEAR
11,304. 0.
11,304. 0.
6 STATEMENT(S) 1, 2, 3, 4
COVENTRY CUSTOM HOMES,
HEDULE L
INC ·
23-2920818
OTHER LIABILITIES STATEMENT 5
ISCRIPTION
:CURITY DEPOSIT
)TAL TO SCHEDULE L,
LINE
21
BEGINNING OF
TAX YEAR
END OF TAX
YEAR
2,000.
2,000.
7 STATEMENT(S) 5
U.S. Corporation Income Tax Return
Porto 1120 Force,endar.are002 ortaxysar
Department of t~e Tmasu~ ! beginning ,ending
lConsollda~mtum ~1 IRS COUNTRY CUSTOM HOMES, INC.
3P
OMB No, 1545-0123
2002
B Employer Identification number
23-2920818
07/31/1997
InstrucBons)
E Check applicable boxes: (1)[ ~ Initial return (2)E~] Final return (3)~ Name change (4)[~] $ 2 8 0 r 6 10.
2 Cost of goods sold (Schedule A, line 8} ....................................................................................................... 2
3 Gross prof,. Subtract line 2 from llne lc ....................................................................................................... 3
4 DMdends (Schedule C, line 19) ............................................................................................................... 4
· 5 Intemst ............................................................................................................................................ 5
~ 6 Gross rents ........................................................................................................................................ 6 24r000.
8 Cap,al gain net income (a~ach Schedule D (FO~ 1120)) ........................................................................ 8
9 Net gain or (loss)from Form 4797. PeK II. line 18 (a~ach Fo~ 4797) .............................................................. 9
10 ~her income (aflach schedule) ................................................................................................................. 10
11 Totalincome. Addfines3throuqhl0 ............................................................................................... ~ 11 2~¢000.
12 Compensation of o~cem (Schedule E. line 4) ................................................................................................ 12
13 Salaries and wages (less employment credits) ........................................................................................... 13
14 Repaim and maintenance ....................................................................................................................... 14
15 Bad debts ............................................................................................................................................... 15
16 Rents ..................................................................................................................................................... 16
18 Interest .......................................................................................................................................... 18 22r285.
19 Chef,able contributions ............................................................................................................................ 19
~ 2D Depreciation (a~ach Form 4562) .................................................................. 20 ::~::~::~::~
~ 21 Less depreciation claimed on Schedule A and elsewhere on return ..................... 21b
~ 22 Depletion ............................................................................................................................................... 22
23 Adve~ising .......................................................................................................................................... 23
24 Pension, pro~-shadng, etc.,plans .............................................................................................................. 24
25 Employeebene~programs .................................................................................................................... 25
26 ~her deductions (a~ach schedule) ..................................................... ~.~....~.~.~.~...~ ............. 26 i ~ 2 ~ 6.
27 Total deductions. Add lines 12 through 26 ............................................................................................ ~ 27 ~ ~ ~ 8 05.
28 <2 ~ 805,
29 Leas: a Net ope~ting loss (NOg) dedu~ion ...... ~,~....~ .......... 29a 0.
b Specialdedu~ions (Schedule C, fine 20) ......................................... 29b 29c
30 Taxable income. Subtractline 29c from line 28 ...................................................................................... 3D ~2 r 805.
31 Totaltax (Schedule J, llne11) ............................................................................................................... 31 0.
b 2002 estimated tax payments ...... 32b
~ f Credit for tax paid on undistributed ~p~ar gains (a~ach Fo~ 2439) .................32l
~ ~ Cmd~ for Federal t~ on fuels (a~ach FO~ 4136). See instructions ..................... 3~
~ 33 Estimated tax pena~ (see page 14 o~ instructions). 0beck ~ Form 2220 is a~ached .................................
34 Tax due. d line 32h is smafler than the total of lines 31 and 33, enter amount owed ...............................................
35 0verpayment. I~ line 32h is lar0er than the total of lines 31 and 33, enter amount overpaid ....................................
36 Enter amount of line 35 you want: ~redited to EOD~ estimated tax ~ Relunded
Sign ~o~, .nd ~mple~. D.I.no. of p.pa.r (other ~an ~p~ is bas. on all ,.~aflo. of which preparer h. any kn~l~ge
Preparers m~' ..... WAGGONER, FRUTIGER & DAUB EIN 23 [1583249
· ~,,o~),r006 E TRINDLE RD SUITE 200 P, ..... (717)506-1222
z~,~. ' MECH~ICSBURGf PA 17050
a~em JWA I~ See Inatructions for Paperwork Reduction Act Notice. i Form 1120 (2002)
L280825 706230 15650 2002.08000 COVENTRY CUSTOM HOMES, INC. 15650 1
no~m,2U¢OO21 COVENTRY CUSTOM HOMES~ INC.
{ii!i;i~:i!~i!] Cost of Goods Sold (See paqe 14 of instructions.)
1
2
3
4
5
§
7
8
g a Check all methods used for valuing closing inventory:
(i) ~ Cost as described in Regulations section 1.471-3
(ii) E~ Lower of cost or market as described in Regulations section 1.471-4
23-2920818 Page2
Inventory at beginning of year ..................................................................................................................... / i!
Purchases ................................................................................................................................................... 23
Cost of labor ...............................................................................................................................................
Additional section 263A costs (attach schedule) ....................................................................................................
Other coats (attach schedule) .......................................................................................................................
Total. Add lines 1 through 5 .......................................................................................................................
Inventory at end of year .............................................................................................................................
Cost of goods sold. Subtract line 7 from line 6. Enter here and on fine 2, page 1 ...........................................................
(iii) [~ Other(Specffymethodusedand attach explanation,) ~
b Check if there was a writedown of subnormal goods as described in Regulations section 1.471-2(c) ............................................................... · [~
c Check ~f the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) ...................................................... · ~]
d If the LIF0 inventory method was used for this tax year. entar percentage (or arnounta) of ]
closing invento~J computed under LIFO ........................................................................................................... 9d
e tt property is produced or acquired for resale, do the rules of section 263A apply to the corporation? ............................................. [--] Yes ~ No
f Was there any change in determining quantities, cost, or valuations between opening and closing inventory?
If'Yes,' attach explanation ............................................................................................................................................. ~ Yes r-~ No
= =' ............ :' "*:~' :: Dividends and Special Deductions received {b) % (a) x (b)
I;::;i;i~::i~i;1 (a) Dividends (c) Special deductions
1 Dividends from ]esa-than-20%-owned domestic corporctions that are subiect to the
70% deduction (other than debt-financed stock) ................................................... 70
2 Dividends from 20%-or-more-owned domesUc corporations that are subject to the
80% deduction (other than debt-financed stock) ................................................... 80
fi 100% d~clu~eon ($~;~don 245(b ............................................................................. 1D0
9 Total. Add lines 1 through 8 .............................................................................. :::::::::::::::::::::::::::::::::: iii i ~i ::i::~i~i~::~ii~ii!~!i::iiiiiiiiiii?.!
10 Dividends from domestic corporations received by a small business investment
company operating under the Small Business Investment Act of 1958 ........................ 10g
::::::::::::::::::::::::::::::::::::: iiii!!i~!iiii~i~i~!~i~!ii~i i ~i~ii ~:: :,i~i:: iii ::iiii~:: !iiiiii!:: :.!ii::ii~:.~ ~i
1§ Foreign dividend g ross-up (section 78) ...............................................................
..................... : ===================== :,::::: :::
is Deduction tar d ,idends paid o, certain prete red pub, ut,iti ...................... ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
lg Total dividends. Add lines 1 through 17. Enter hare and on line 4, page 1 ............. ~ ~;~;~:~::~::~:~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
20 TMal special deductions. Add lines 9, 1 O, 11,12, and 18. Enter here and on line 29b, paps 1 ............................................... ~
(a) Name of o~cer
I HARRY S CLAYPOOL SR
am $500,000 or mom.
(b) Social secudty (c) Pement of ' Percent of concretion
number time devoted stock owned (I) Amount of
compensation
tobusiness (al) Common (e) Preferred
190--].6--2687 ~,,'~,T 33.33%
161-34-0068 ~kRT 33.33%
161-34-].329 ~ .~, T 33.33%
161-34-1329
Off retu rd .......................................................................
V RICHARD JAMESr JR
DIANE M JAMES
DIANE M JAMES
2 Total compensation of officers
3 Compensation of officers claimed on Schedule A and elsewhere on
4 Subtract l ne 3 from line 2. Enta he result here and on line12, pape1 .......................................................................
211611
~2-1e-o~ JWA Form1120 (2002)
2
1280825 706230 15650 2002.08000 COVENTRY CUSTOM HOMES, INC. 15650__1
Form1120(2002) COVENTRY CUSTOM HOMESr INC.
Iii:i~:iJ~i!~:i::.i:::j Tax Computation (Seepage17ofinstructiens)
I Check if the corporation is a member of a controlled group (see sections 1561 and 1563) ................................. · ~
Iml~ortant: Membem of a controlled group, see instructions on page 17.
2a Iftheboxon me 1 ~schecked, entarthecorporatonssharaofthe$50000 $25,000, and$9,925,000taxabe
income brackets (in that order):
(1) I$ I (2) 1$ I 13) ,
b Enter[hecorporetian'sshareof: (1) Additiona15%tax(notmorathae$11,750) $
(2) Additional 3% tax (not more than $100,000) $
a Income tax. Check if s qualified pemonal service corporation under section 448(d)(2)
(see page 17) ................................................................................................................................ · ~
4 Alternative minimum tax (attach Form 4626) ......................................................................................................
5 Add nes3and4 .......................................................................................................
Sa Foreign tax credit (attach Form 1118) .................................................................. 6a
h Possessions tax credit (attach Form 5735) ............................................................ Sb
s Check: .uneonvengona.ource elcradif credif (attach Form 58,4)
d General business credit. Check box es) and indicate which forms are attached. ::::::::::::::::::::::::::::
r-"-] Form 3800 [-~ Form(s) (specify) · __ 5d
e Credit for prior year minimum tax (attach Form 8827) ............................................Se
! 0ualified zone academy bond credit (attach FO m 8860) .......................................... ~ Sf ]
7 Total sredifs. Add lines 8a through 61 .................................................................................................................
8 Subtract line 7 fram line 5 ................................................................................................................................
g Personal holding company tax (attach Schedule PH (Form 1120)) ..........................................................................
10 Other taxes. Check if/rom: E~ Form 4255 ~--] Form 8611 E~] Form 8697
~ Form 8866 r-~ Other (attach schedule) .............................................
11 Totaltax. Add inesBthroughl0 Enerhereandonline31,pa,qe1
t :~:~ ::1 Other Information e 19 of instructions
I Check method of accounting: a ~ Cash h [~
G [~] Other (specify) ·
2 See page 21 of the instructions and enter the:
a Business activity code no. · 2 3 6 1 1 0
b Bu,i.~,~v,~ · HOME CONSTRUCTION
c p~..~ .... i:. · HOME CONSTRUCTION
3 At the end of the tax year, did the corporation own, directly or
indirectly, 50% or more of the voting stock of a domestic
corporation? (For miss of attribution, see section 267(c).)
If 'Yes,' attach a schedule showing: (a) name and
employer identification number (ELM), (b) percentage owned,
and (c) taxable income or (loss) before MOL and special
deductions of such corporation for the tax year ending with or
within your tax year.
4 Is the corporation a subsidiary in an affiliated group or a
parent-subsidiary controlled group? .................................
if'Yes,* enter name and ElM of the parent corporation ·
5 At the end of the tax year, did any individual, partnership,
corporation, estate, or trust own, directly or indirectly,
50% or more of the corporation's voting stock? (For rules
of attribution, see section 267(c).) .................................
If 'Yes,' attach a schedule showing name and identifying
number. (Do not include any information already entered
in 4 above.) Enter percentage owned ·
6 Dudng this tax year, did the corporation pay dividends (other
than stock dividends and distributions in exchange for stock)
in excess of the corporation's eu rrant and accumulated
eamings and profits? (See sections 301 and 316.) .............
If 'Yes,' file Form 5452, Corporate Report of
Nondividend Distributions.
if this is a consolidated return, answer here for the parent
corporation and on Form 851, AffiliaNons Schedule, for
each subsidiary.
At any time dudng the tax year, did one foreign person
own, directly or indirectly, at least 25% of (a) the total
voting power of a~l classes of stock of the corporation
entitled to vote or (b) the total value of all classes of stock
of the corporation? .......................................................
If 'Yes," enter: (a) Pementage owned ·
and (b) Owner's country ·
The corporation may have to file Form 5472, Information
Retum of a 25% Foreign-Owned U.S. Corporation or a
Foreign Corporation Engaged in a U.S. Trade or Business.
Enter cumber of Forms 5472 attached ·
Check this box if the corporation issued publicly offered
debt instruments with original issue discount ............ · ~]
if checked, the corporation may have to file Form 8281,
Information Return for Publicly Offered Original Issue
Discount Instruments,
Enter the amount of tax-exempt interest received or
accreed during the tax year · $
Enter the number of shareholders at the end of the tax
year (if 75 or fewer) ·
If the corparation has an NOL for the tax year and is
electing to forego the carryback period, check here ... · r~
if the corporation is filing a consolidatad return, the statement
required by Regulations section 1.1502-21(b)(3){i) or (ii) must
be attached or the election wg[ not be valid.
2 Enter the available NOL carryover from prior tax years
(Do not reduce it by any deduction on line
29a.) · $ 2 r 0 7 6 ·
3 Are the corporation's total receipts (line 1 a plus lines 4 throogh
10 on page 1 ) for the tax year and its total assets at the end of the
tax year less than $250,000? .......................................
If"Yes,' the corporation is not required to complete Schedules L,
M-l, and M-2 on page 4. Instead, enter the total amount of cash
distributions and the book value of property distributions (other
than cash) made dudng the tax year. · $
Note: If the corporation at any time du dog the tax year, hud assets or operated a business in a foreign country o r U.S. possession, it may be required
to attach Schedule N (Form 112D}, Foreign Operations of U.S. Corporations, to this return. See Schedule N for details.
23-2920818 Pa,qe 3
No
X
211621
12-19-02 JWA 3 Form 1120 (2002)
1280825 706230 15650 2002.08000 COVENTRY CUSTOM HOMES, INC. 15650 1
Fo~m1120 (2002) COVENTRY CUSTOM HOMESr INC. 23-2920818 p,n, 4
Note: The co oration is not rec Jired to com~ ,late Schedules L M-1 and M-2 if Question 13 on Schedule K is answered 'Yes.'
~se~ ............... ~ .......!~} .............................. (b) (c) Id)
21 Trade notes and accounts receivable .........
b Less allowance for bad debts ..................
4 U.S. government obligations ..................
b Less accumulated depreciation ...............
b Less accumulated depletion .................. ( (
b
Less
accumulated
Llabiffiles Infl Shareholders' Equl~ ::7~'}';~'fi'~"::'::+i"::~}~?:~'}'~'?: '~'~'~'~'~'~':'
2
6
8
0
0
0
2
6
8
0
0
0
b Common stock ............... 1~ 000 I ~ 000 .-1~ 000 It 000.
25 Retained earnings- Unappropriated ................................... ~::::~
2
0
7.
.>
Reconciliation of Income (Loss) per Books With Income per Retum i 20 of instructions
I Netincome(Ioss)perbooks ..................... <2r805.>7 Incomerecordedonbooksthisyearnot
2 Federal income tax per books .................... included on this return {itemize):
3 Excess of capitallosses over capital gains Tax-exempt interest $
4 lflcome subject to tax not mcome~ on books this year
(itemize): '
S Deducti°ns °n this return n°t charged against book ]no0me this year (itemize):
deducted on this return (itemize): ~*~:~:::~:~¢~:~ ~nn~:~:~: ~:~ :::::::: ~: ::
::: :: ::: ::.:: ::::: :::: ::~::::::: ;;:.: a Depreciation $
::::::::::::::::::::::::::::::::::::::::::::::::::::: b Chad[able
a Depreciation ...... $
g Add lines 7 and 8 ....................................
6 Addiiceslthrou.qh5 <2r805 ~'0 ncome(line28~pa,qe1)-Iine61essline9 ...... <2~805
.>
(Line 25, Schedule L)
............................................... ~'~-'6-2-. >5 Distributions: a Cash
Balance at beginning of year ..........................
Netincome(Ioss}perbooks .................... (2, 805. > b Stock .....................
:::::::::::::::::::::::::::::::::::::ii::::::::::i::::::::::::::::::::::::::::::::::::::::i::::::::::::::::::::i:: 60therdecreases(itemize):
7 Add lines5 and 6 ...................................
Add lines 1, 2, and 3 < 3 r 2 07. >8 Balance at end of year (line 4 less line 7) < 3 r 20 7.
a~s31 JWA Form 1120 (2002)
12-20-02
1280825 706230 15650 2002.08000 COVENTRY CUSTOM HOMES, INC. 15650__1
Name:COVENTRY CUSTOM HOMESr INC. LD. Number 23-2920818
Income (Loss) From Other Rental Activities
Show the kind and location of each metal property,
3703 LEYLAND DRIVE MECHANICSBURG PA 17050
Rental Income
2 Gross rents ....................................
Rental Expenses
Advertising ....................................
Auto and traval ..............................
Cleaning and maintenance ..................
Commissions .................................
Insurance ......................................
Legal and other professional fees .........
Interest ..........................................
Repairs ..........................................
Taxes .............................................
Utilities .......................................
Wages and salaries ...........................
Depreciation ...................................
Other (list) ·
24,000
Properties
B C
Total expenses for each property.
Add lines 3 through 15 ..................... 26
Total gross rents. Add gross mots from line 2, columns A through D ........................................................................ 17
Total expenses. Add total expenses from line 16, columns A th rough D ...................................................................... z018
Net gain (loss) from Form 4797, Part II, line 18, from disposition of propert~ from other rental
activities ........................................................................................................................................................ 19
Net income (loss) from other rental(s) ................................................................................................................
24r000.
26,805.
<2,805.>
5
1280825 706230 15650 2002.08000 COVENTRY CUSTOM HOMES, INC. 15650 1
20VENTRY CUSTOM HOMES, INC. 23-2920818
RM 1120 TAXES AND LICENSES STATEMENT 1
SCRIPTION
XES FROM RENT AND ROYALTIES
TAL TO FORM 1120, LINE 17
AMOUNT
3,274.
3,274.
RM 1120 OTHER DEDUCTIONS STATEMENT 2
SCRIPTION
.OFESSIONAL FEES
'SURANCE
'ILITIES
~WING
:AL ESTATE TAXES
'HER RENT & ROYALTY EXPENSES
~TAL TO FORM 1120, LINE 26
AMOUNT
1,246.
1,246.
NET OPERATING LOSS DEDUCTION STATEMENT 3
YEAR LOSS SUSTAINED
LOSS
PREVIOUSLY LOSS
APPLIED REMAINING
!/31/98 845. 845. 0.
~/31/00 1,221. 1,221.
~/31/01 855. 855.
)L CARRYOVER AVAILABLE THIS YEAR 2,076.
~HEDULE L OTHER LIABILITIES STATEMENT 4
ESCRIPTION
ECURITY DEPOSIT
DTAL TO SCHEDULE L, LINE 21
BEGINNING OF
TAX YEAR
END OF TAX
YEAR
2,000. 2,000.
2,000. 2,000.
6 STATEMENT(S) 1, 2, 3, 4
1280825 706230 15650 2002.08000 COVENTRY CUSTOM HOMES, INC. 15650 1
O. 1120
A Check ff a:
1 Conso[i~ated return
~ defined In ReOs. r~
beginning
U.S. Corporation Income Tax Return
For calendar year 2003 or tax year , ending
Name
COVENTRY CUSTOM HOMES~ INC.
Number, street, and room or suite no. (If a P.O. box, see page 7 of instructions.)
5 W MULBERRY HILL ROAD
City or town, state, and ZIP code
CARLISLE PA 17013
2003
23-2920818
07/31/1997
-- Initial return Address char $ 2 8 0 ~ 6 1 0 ·
2 Cost of goods sold (Schedule A, li~e 8) ......................................................................................................
~ Gross pro~. Subtract fine 2 from line lc ...................................................................................................... 3
40ividends (Schedule C, line 19) .............................................................................................................. 4
5 Interest ............................................................................................................................................... 5
~ 6 Gross rants ........................................................................................................................................... 6 24r000.
8 Cap~l gain net income (a~ach Schedule O (Form 1120)) ........................................................................... B
9 Net gain or (loss) from Form 4797, Pa~ II, line 18 (a~ach Form 4797) ................................................................ 9
10 ~he~ income (a~ach schedule) ..................................................................................................................... 10
11 Totalincome. Add lines 3 through l0 ................................................................................................ ~ 11 24r000 ·
12 Compensation of officem (Schedule E, line 4) ............................................................................................. 12
13 Salades and wages (less employment credits) ............................................................................................ 13
16 Rents ..................................................................................................................................................... 16
17 Taxes andlicenses SEE STATEMENT 1 17 3,611 ·
18 21~821
18 Interest ............................................................................................................................................... '
Ig Cha~able contributions
~ 20 Depreciation (affach Form 4562) .................................................................. 20
= 22
~ 22 9epletion ...........................................................................................................................................
25 Employee benef~ programs .................................................................................................................... 25
26 ~her deductions (a~ach schedu e) ........................................... S.~...~E~E~ ~.2 ............ 26 1,246.
27 Totald~du~tio~s. Addli~es12through26 ....................................................................................... ~ 27 26r678.
z9 Less: o,.r nO oss ( 0L) .duct on ..... .........
b Special deductions (Schedule C, line 20) ........................................ 29b 29c
30 Taxable I,come. Subtract line 29c from line 28 ......................................................................................... 30 < 2 t 678.:
31 0.
b 2003 estimated tax payments ...... 32b ~
~ c on Fo~ 44ss ........................... 32~ J d Bal ~ 32d
~ f Credit for tax paid on undistributed capital gains (aUach Form 2439) .................. 32f
~ g Cred~ for Federal tax on fuels (a~ach FO~ 4136). See instructions ..................... 32g 32h
~ 33 EstimatedtaxpenalW(seepage14ofinstructions}.CheckitForm2220isaEached ................................ ~ ~ 33
34 Tax due. If line 32h Is smaller than the total of lines 31 and 33, enter amount owed ........................................ 34 0.
Sign ~ .d complete D~--~on of preparer (o~. ~. ~pay.~ Is b.~ on ,, in~atlon of Whl~ preparer has
P*eparer's (or~'ou~,, ~5WAGGONER' FRUTIGER & DAUB ~o ..... 2 3 ~ 1583249
Use0.1y ..,~.=~=o~). 006 E TRINDLE RD SUITE 200 (717)506-1222
=~. ' MECH~ICSBURGr PA 17050
12-oa-~ JWA ~'SeelnstructionsforPsperworkReductionActNotice. I Form1120(2003)
.2130825 706230 15650 2003.06010 COVENTRY CUSTOM HOMES, INC. 15650 1
no~,r~o~l COVENTRY CUSTOM HOMES, INC.
~ a e 14 otinstmctions ~
Inventory at beginning of year .................................................................................................................... "
Cost of labor ..................................................................................................................................................
Additional section 263A costs (attach schedule) ....................................................................................................
Other costs (attach schedule) ....................................................................................................................
Cost of go°ds sold. Subtract line 7 from fine 6. Enter here and on line 2, page 1 ..........................................................
(i) ~ Cost as described in Regulations section 1.471-3
(ii) ~ Lower of cost or market as described in Regulations section 1.471-4
23-2920818 Pa__~
(iii) ~ Other (Specs method used and a~ch explanation.) · · ~
Check if there was a writedown of subnormal goods as described in Regulations secti°n 1-471'2(c) ............................................................... ·~
Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) ......................................................
If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of I 1
! gd
c os ng inventory computed under LIFO ........................................................................................................... [~ Yes E~ No
If property is produced or acquired for resale, do the rules of section 263A app y to the co poration? .............................................
Was there any change in determining quantities, cost, or valuations between opening and closing inventory? [~] Yes ~--] No
If"Yes,' attach explanation (a) Dividends (c) Special deductions
I~..~e:i~:t Dividends and Special Deductions (B) % (a)x(b)
1 Dividends from less.than-20%-owned domestic corporations that ara subiect t° the
70
70% deduction (other than debt-financed stock} ..................................................
2 Dividends from 20%.or.mom-owned domestic corporations that are subject t° the
80
80% deduction (other than debt-financed stock} ...................................................
9 Total. Add lines 1 through 8 ..............................................................................
10 Dividends from domestic corporations received by a small business investment 100
company operating under the Smelt Business Investment Act of 1958 ...................... 100
15 Foreign dividend gross-up (section 78) ................................................................
18 Deduction for dividends paid on certain preferred stock of pubfic utilities .................... : ::~ ~ :: ~::::
20 Total apeclal doductions. Add lines 9, 10~ 11 ~ 12, and lB. Enter here and on line 29b, pa,qe 1 ............... ·
Percent of corporation
(a) Name of officer (b) Social security stock owned (f) Amount of
compensation
number to business
I HARRY S CLAYPOOL SR
V RICHARD JAMES, JR
DIANE M JAMES
DIANE M JAMES
90-16-2687 PART
[61-34-0068 PART
1-34-1329 PART
161-34-1329
33.33~
33.33%
2 Total compensation of officem ....................................................................................................................................
3 Compensation of officers claimed on Schedule A and elsewhere on return ...........................................................................
4 Snbtractline3fromlineS. Entertheresuithereandonline12, paqe1
311611
12-23-03 JWA 2
12130825 706230 15650 2003.06010 COVENTRY CUSTOM HOMES, INC.
Form 1120 (2003)
15650__1
Formff20(2003) COVENTRY CUSTOM HOMESr INC. 23-2920818 Page3
tii!ii~i~i::::il Tax Computat on (see page 17 of instructions
11
I~i~iil1 Other Information
1 Check methodofaccounting: e r'~ Cash b
C E~} Other (specify) ·
2 See page 21 of the instructions and enter the:
a Business activity cede no. · 2 3 6 1 1 0
b Businessac~vity · HOME CONSTRUCTION
s P.~.~ .... lc. · HOME CONSTRUCTION
3 At the end of the tax year, did the corporation own, directly or
indirectly, 50% or mom of the voting stock of a domestic
corporation? (For rules of attribution, see section 267(c).)
If 'Yes,' attach a schedule showing: (a) name and
employer identification number (Elk), (b) percentage owned,
and (c) taxable income or (loss) before N0L and special
deductions of such corporation for the tax yea r ending with or
within your tax year.
4 Is the corporation a subsidiary in an affiliated group or a
parent-subsidiary controlled group? .............................
if'Yes,'entername and Elk ortho parent corporetion ·
I Check if the corporation is a member of a controlled group (see sections 1561 and 1563) .................................·
Important: Members of a controlled group, see instructions on page 17.
2a If the box on line 1 is checked, enter the corporation's share of the $50,000, $25,000, and $9,925,000 taxable
income brackets (in that order):
b Enter the corporation's share of: (1) Additional 5% tax (not more than $11,750)
(2) Additional 3% tax (not mom then $100,000)
8 Income tax. Check if a qualified pemooifi service corporation under section 448(d)(2)
(see page 17) .................................................................................................................................... · [~]
4 Alternative minimum tax (attach Form 4626) ........................................................................................................
8 Add lines3and 4 ...................................................................................... ....................................
6a Foreign tax credit (attach Form 1118) ................................................................. 6a
b Possessions tax credit (attach Form 5735) ............................................................ 6b
s Check: E~] Nonconventionalsourcefuelcredit ~ OEV credit (attach Form 8834) :::~:::
d GeneralbusinesscreditCheckbox(es)andindicatewhichformsareattached. :::i:::::::::::::::::::::::i'"'iii
[~ Form 3800 [~ Form(s) (specify) · ~ 6d
e Credit for prior year minimum tax (attach Form 8827) ............................................. 6e
f Qualified zone academy bond credit (attach Form 8860) .......................................... ~ 6f
7 Totalcredits. Add lines 6a through 6f ................................................................................................................
8 Subtract line 7 from line 5 ..............................................................................................................................
9 Personal holding company tax (attach Schedule PH (Form 1120)) ...........................................................................
10 Other taxas. Checkif from: r-~ Form 4255 ~-~ Form 8611 E~ Form 8697
~ Form 8866 E~] Other (attach schedule) .............................................
Total tax. Add lines 8 through 10. Enter here and on line 31, page 1 ..........................................................................
7 At any time during the tax year, did one foreign person
own, directly or indirectly, at least 25% of (a) the total
voting power of all classes of stock of the corporation
entitled to vote or (b) the total value of all classes of stock
of the corporation? ...........................................................
If"Yes," ente~: (a) Percentage owned ·
and (b) Owner's country ·
c The corporation may have to file Form 5472, Information
Return of e 25% Foreign-Owned U.S. Corporation or a
Foreign Corporation Engaged in a U.S. Trade or Business.
Enter number of Forms 5472 attached ·
8 Check this box if the corporation issued publicly offered
debt instruments with original issue discount ............ · ~-~
If checked, the corporation may have to file Form 8281,
Information Return for Publicly Offered Original Issue
Discount instruments.
Enter the amount of tax-exempt interest received or
accrued during the taxyear · $
D Enter the number of shareholders at the end of the tax
5 Attheendotthetaxyear, did any ifidividual, partnerehip, year(ff75orfewer) ·
corporation, estate, or trust own, directly or indirectly,
50% or more of the corporation's voting stock? (For rules 11 it the corporation has an MOL for the tax year and is
of attribution, see section 267(c).) ............................... electing to forego the carryback period, check here ... · ~
If'Yes,' attach a schedule showing name and identifying If the corporation is filing a consolidated return, the statement
required by Temporary Regulations section 1.1502-21T(b)(3)(i)
number. (Do not include any information already entered or (ii) must be attached or the election wifi not be valid,
in 4 above.) Enter pementage owned · 12 Enter the available N0L carryover from prior taxyears
6 During this tax year, did the corporation pay dividends (other (0o not reduce it by any deduction on line
than stock dividends and distributions in exchange for stock) 29a.) · $ 4 r 8 81.
in excess of the corporation's current and accumulated
eamings and profits? (See sections 301 and 316.) ............. 13 Are the corporation's total receipts (line la plus lines 4 th rough
If 'Yes," file Form 5452, Corporate Report of 10 on page 1) for the tax year and its total assets at the end of the
Nondividend Distributions. tax year less than $250,000? ...........................................
If 'Yes,' the corporation is net required to complete Schedules L,
If this is a consolidated return, answer here for the parent M-l, and M-2 on page 4. Instead, enter the total amount of cash
corporation and on Form 851, Affiliations Schedule, for distributions and the book value of property distributions (other
each subsidiary, than cash) made during the tax year. · $
Note: If the corporation, at any time du ring the tax year, had assets or operated a business in a foreign country or U.S, possession, it may be required
to attach Schedule N (Form 1120), Foreign Operations of U.S. Corporations, to this return. See Schedule N for details.
Ne
X
311621 3 Form 1120 (2003)
12-23-o3 JWA
2130825 706230 15650 2003.06010 COVENTRY CUSTOM HOMES, INC. 15650 1
Form1120(2003) COVENTRY CUSTOM HOMESr INC. . 23-2920818 )late Schedules L M-2 if Question 13 on Schedule K is answered "Yes.'
b Lessallowanceforbaddebts ..................( 4tO00' [ ......... u-'* ..................... 4tO00 '
b Less accumulated depreciation ...............
b Less accumulated depletion .....................
b
Less
accumulated
amo~izati0n
............... [ ...... ; ...........................
.... ~=~:~*:: :::~::~:: *= :~:~:~ .... 10 ~ 894. 9,96 1.
b Common stock ............... lr 000. [ r 000 . [ r 000 . [ r 000 .
27 Lesscost oftmasu~stock ......................... ~ ............... ~ { ( ,
28 Total liabil~ies and shareholdem' equiW :::~::::~¢~::: :~:::~::. :.~ :~; 2 8 0 r 6 10 2 8 0 r 6 1 0.
Reconciliation of Income (L_n_~_~} per Books With Income per Return (see papa 20 of instructions'
I Net income (loss) per hooks .....................
(itemize): .................... * ' ~
9 Add lines 7 and S ......................................
6 Add lines 1 throuph 5 <:~ ! 6 7 8 ~0 Income (line 28, page 1) - line 6 less line 9 ...... ~2 r 6 ~ 8
.>
Earnings per Books (Line 25~ Schedule
I Balanceatbeginningotyear .................... 3r207 >5 Dis bu ons: a Cash .......................
2 Netincome(Ioss)perbooks ..................... <2r678.> b Stuck
30therincreases(itemize): ~i~i~i~ii'i~?~;:~i~i:~i:~i~i~l~?i~i~~
~::::~=:::::~::::: :~:~:~:~ ~ ~ 6 ~her decreases (itemize):
7 Add lines 5 and 6 .....................................
4 Add lines 1,2, and 3 <5 r 8 8 5. >8 Balance at end of year (line 4 less line 7) < 5 ~ 8 8 5 .
311631 Form 1 120 (2003)
~2-os-o3 JWA
.2130825 706230 15650 2003.06010 COVENTRY CUSTOM HOMES, INC. 15650__1
Name:COVENTRY CUSTOM HOMES, INC. LD. Number 23--2920818
Income (Loss) From Other Rental Activities
Show the kind and location of each rental property.
3703 LEYLAND DRIVE MECHANICSBURG PA 17050
Rental Income
A
2 Gross rents .................................... 24 r 000.
Rental Expenses
Properties
D
24r000.
26,678.
Advertising ....................................
Auto and travel ..............................
Cleaning and maintenance ..................
Commissions .................................
Insurance .......................................
Legal and ether professional fees .........
interest ..........................................
Repaim ..........................................
Taxes .............................................
Utilities
Wages and salaries
Depreciation
Other(list) ·
lr246.
21r821.
3,611.
Total expenses for each property.
Add lines 3 through 15 ..................... 26r678.
Total gross rents. Add gross rents from line 2, columns A through D ......................................................................... 17
Total expenses. Add total expenses from line 16, columns A through D ..................................................................... 2018
Net gain (loss) from Form 4797, Pa~ II, line 18, from disposition of property from other rental
activities ........................................................................................................................................................ 19
Net income (loss) from other rental(s) ...............................................................................................................
<2,678.>
5
~-130825 706230 15650 2003.06010 COVENTRY CUSTOM HOMES, INC. 15650 1
~OVENTRY CUSTOM HOMES, INC. 23-2920818
L~i 1120 TAXES AND LICENSES STATEMENT 1
~CRIPTION AMOUNT
XES FROM RENT AND ROYALTIES 3,611.
PAL TO FORM 1120, LINE 17 3,611.
RM 1120 OTHER DEDUCTIONS STATEMENT 2
SCRIPTION AMOUNT
OFESSIONAL FEES
SURANCE
ILITIES
WING
AL ESTATE TAXES
HER RENT & ROYALTY EXPENSES
TAL TO FORM 1120, LINE 26
1,246.
1,246.
NET OPERATING LOSS DEDUCTION STATEMENT 3
~X YEAR
LOSS SUSTAINED
LOSS
PREVIOUSLY LOSS
APPLIED REMAINING
/31/98 845. 845. 0.
/31/00 1,221. 1,221.
:/31/01 855. 855.
1/31/02 2,805. 2,805.
)L CARRYOVER AVAILABLE THIS YEAR 4,881.
~HEDULE L OTHER LIABILITIES STATEMENT 4
~SCRIPTION
~CURITY DEPOSIT
)TAL TO SCHEDULE L, LINE 21
BEGINNING OF
TAX YEAR
END OF TAX
YEAR
2,000. 2,000.
2,000. 2,000.
6 STATEMENT(S) 1, 2, 3, 4
2130825 706230 15650 2003.06010 COVENTRY CUSTOM HOMES, INC. 15650__1
Summit Abstract Services, inc.
3904 Trindle Road
Camp Hill~ PA 17011
B. T~pe of Loan
1.__FHA 2.__FmHa 3. XXCon¥. Unlns. ~. RleNumber ¢. Loan Number ~8. MoeoagelnsuranceCaseNumber
4. VA 5. Cony. Ins ] E-1046 ! 7883079248 ! N/A
shown. Items mal~ed '(p.o.c.}' ~er~ pa~d outside the closing; they ara shown hem for infon~atlonal puq}oses and are not
John M. Smith
KrisUn S. Smith
3933 Bmokridge Odve
Mechanicsbucg, PA 17050
G. Properly c~a~'~
3703 Leytand Drive
Mechanicsburg, PA 17050
corporated ~t801 Frederice Street
0 Mountain Laurel Circle ~OwensSoro, KY 42301
rrisburg, PA 17110 ]
umrnit Abstract Services, Inc.
amp Hill, PA 17011
303,000,00
389.97
203. ExlsUn~ .l~a~s) taken sui~ect to
204.
205.
206.
· 207.
208.
209.
214. Sewer to
215. Trash to
217.
219.
5,000.00
175,000.00
514. Sewer to
515. Trash to
516.
517.
302,637.90
978.52
814.
75.00
750.00
275.00
125,0(]
POC
540.58
Franc~Vaughn Ill Ro~erlr~n
1109. {.endl~'a coverage $
R~JA~slgn. S 17.00
25,00
128.(X)
3.030.00
379.31
WORTHINGTON DEVELOPMENT, LP
Balance Sheet
November 24, 2003
ASSETS
Assets
Cash
Cash - Restricted
Due From MaybeHe L. Claypool, Inc.
Inventories, at COSt
MeadowbrCOk Farms, Phase I~
Mendowbrook Farms, Phase III
Joint veamre, Claypool - Worthington
Total Assets
December 31,
2003
$ 2,254 1
36,684
768
91
63,612 2
361,720 6
7
$ 465,129
Adjustments
Fair Market
Value at Date of
Death
1,048 3,302
36,684
768
91
28,273 91,885
361,720
29,321 494,450
LIABILITIES AND PARTNERS EQUITY
Liabilities
Accounts Payable
Accrued Interest
Note Payable - Pamay Development Co., Inc.
Note Payable - Pamay Development Co., Inc.
Loan Payable - Cathy Claypool
Loan Payable - Calvin E. Zimmerm~u
Total Liabilities
$ 29,936 3
2,386 4
350,000
66,200 4
2,700
5,oo~
$ 456~222
620 29,316
400 1,986
350,000
400 65,800
2,700
5~000
1,420 457~642
Partners Equity
Estate ofHan~ S. Claypool
Maybelle L. Cinypool
Mayballe L. Claypcol~ Inc.
Total ParmersEquiW
3,533 5 13,811 17,344
3,532 5 13,811 17,343
11842 5 279 2t121
$ 8,907
27,901 36,808
29,321 494t450
Total Liabilities and Partners Equity
1 - Adjustment for December cash txansacfions
2 - Adjustment to fair market value based on subsequent net sales (copy of
2 settlement sheets $50,000-1,089 & $44,000-1,026 )
3 - Adjustment for December accounts payable
4 - Adjustment for December accrued interest
5 - Adjustment for change in net equity
6 - No adjustment is necessary because FMV appproximates COst
7 - No value has be~n ~ssigned because the joint venture just was formed a
few months ago. The first lot sales did not occur until May 2004.
$ 465r129
Page 1 - 2
Schedule C-2
Partnership Information
Estate of Harry S Claypool
PA File Number
21-04-0767
Worthington Development, LP
ADDITIONAL INFORMATION
Item:
A Detailed Calculations see Tab-8
See attached
B Tax Returns see Tabs 9-13
See attached returns 1999-2003
C Real Estate see Tab 14
See attached settlement sheets (2) for Meadowbrook Farms, Phase II dated 4/13/04 & 5/10/04
See attached settlement sheets (1) for Meadowbrook Farms, Phase III dated 5/22/03
D Other Information see Tabs 15-16
See copy of Worthingdon Development LP partnership agreement.
See copy of Joint Venture Agreement between Claypool-Tiday, LLC and Worthington Development LP
No major improvements were started or completed before Januraryl, 2004 by the Joint Venture. Therefore,
we believe the fair market value approximates the cost value. See Tab-15 for the settlement sheet dated
5/22/03. First lot sales did not occur until May 2004.
Page 2 - 2
065
DEVELOPMENT
REAL ESTATE
233110
G Check applicable boxes:
H
I
U.S. Partnership Return of Income
For calendar year 1999, or tax year beginning ,1999, and ending
Name of partnemhip
NGTON DEVELOPMENT, L.P.
N u ml3e~, eh'set, and room or suite no. {If a P.O. box, ~ee page 12 of the InsttucUorls.}
MAYBELLE COURT
OMB No. 1545-0099
1999
Employer Identification
tlurl3Uer
25-1847417
/1999
PA 17055
(1) __ Initial return (2) __i Final return (3) address
Checkaccountingmethod: (1) ~-~ Cash (2) r~ Accrual (3) ~ Other(specify) ·
Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year ·
(4)
499,915 ·
__ Amended return
Caution: Include only trade or business income and expenses on lines la through 22 below. See the instructions for more information.
b Less returns and allowances ........................................................................... lb lc 50,000.
2 Cost of goods sold (Schedule A, line 8) ............................................................................................................ 2 3 3,4 89.
~ 3 Gross profit. Subtract line 2 from line lc ........................................................................................................... 3 1 6,5 1 1 ·
~ 4 Ordinary income (loss} from other partnemhips, estates, and trusts (attach schedule) ................................................ 4
_=
5 Net farm profit (loss} (attach Schedule F (Form 1040)) ...................................................................................... 5
6 Net gain (loss) from Form 4797, Part II, line 18 ................................................................................................... 6
7 Other income (loss) (attach schedule) . ........................................................................................................... 7
8 Total Income (loss). Combine fines 3 throuf~h 7 ............................................................................................. 8 1 6 r 5 1 1 ·
9 Salaries and wages (other than to partners) (less employment credits) .................................................................. 9
~* 10 Guaranteed paymentsto partnem .................................................................................................................. 10
~ 11 Repaimand maintenance .............................................................................................................................. 11
:~ 12 Bad debts ................................................................................................................................................... 12
= 13 Rent 13
,o 14 Taxes and licenses ....................................................................................................................................... 14
~ 15 Interest ................................................................................................................ [ .................................... 15
"~ is s Depraciat~o. (,requirnd. attach Form 4S62} ......................................................... ~,a ??~i~!i
b Less depreciation reported on Schedule A and n sewhere on etum ........................... 116bI 16c
· .~,17 Depletion (Do not deduct oll and gas depletion.) ............................................................................................. 17
18 Retirement plans, etc ..................................................................................................................................... i18
~ 19 Employee benef*dprograms ........................................................................................................................... 19
.9
.~ 20 Otherdaductions(attachschedule) ..................................................... ~...~r~?~r~....~. ..............20 1,804.
21 Totaldeductlona. Add the amounts shown nthefarrightcolumnforlinesgthrouph20 ....................................... 21 1,804.
22 0rdlnsry Income (loss) from trade or business activiUes. Subtract line 21 from line 8 ................................................ 22 14,707.
Under pan.ass of perjury I d eolare that I have examined this rettJm lilcludlrlg eccomnmnylr%g schedules and statems~ltS aD~ to the U~I of my knowledge and Delief, it is true,
Sign
Paid signature .elf-strlnloyed · I~ I 178- 38 - 3454
Preparer's~.~'e~a.~(or~WAGGONER, FRUTIGER & DAUB E~. 11,23--1583249
Use0nly .,~-emnloy,)~'5006 E TRINDLE RD SUITE 200 z,P~. 11,.17050
'"~'"~' MECHANICSBURG, PA
JWA For Paperwork Redustion Act Notice, see separate instructions. Form 1065 (1999)
911001
11-24-99
FO~]065 ?99) WORTHINGTON DEVELOPMENT, L.P. 25-1847417 Page 2
I~i~i~ Cost of Goods Sold
inventory at beginning of year ...........................................................................................................................
Purchases less coat of ~tems withdrawn for personal use .......................................................................................
Cost of labor ................................................................................................................................................
Additional section 263A costs (attach schedule)
Other costs (attach schedule) .................................................................... ~ ~ ~ ... ~ ~.~ ~'~..E~. ~... ~. .......
Total. Add lines I through 5 ...........................................................................................................................
Inventory at end of year ....................................................................................................................................
Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 . ........................................................
505,391.
9,405.
514,796.
481,307.
33,489.
Check ell methods used for valuing closing inventou:
(I) [-~r] Cost as described in Regulations section 1.471-3
(11) ~'] Lower of cost or market as described in Regulations section 1.471'4
(IS) ~ other(specifymethod used and ettachexp[anation)~
Check this box if them was e wdtedown of"subnormal' goods as described in Regulations section 1.471-2(c) ................................................... ·
Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Fcrm 970) ....................................
Do the mles of section 263A (for property produced or acquired for resale) apply to the partnership? ............................................ ~ Yes ~ No
Was thers any change in determining quantities, cost, or valuations between opening and closing inventory? .................................... r-]Yes ~-] No
If'Ye%' attach explanation.
~;~:~-- ..... Other Information
I What type of entity is filing this return? Check the applicable box:
a [--~ General partnership b ~ Limited partnership c [~ Limited liability company
d E~ Limited liability partnership e C~ Other ·
2 Am any partners in this partnership also partnerships? ........................................................................................................................
3 Is this partnership a partnerin another partnership? ..............................................................................................................................
4 is this partnership subject to the consolidated audit procedures of sections 6221 through 6233? If"Yes,' see
Designation of Tax Matters Partner below .......................................................................................................................................
5 Does this partnership meet ALLTHREE of the following requirements?
a The partnership's total receipts for the tax year wars less than $250,000;
b The pa~tnersship's total assets at the end of the tax year wars less than $600,000; AND
c Schedules K-1 are filed with the rstum and furnished to the partners on or before the due date (including e~tensions) for the Partnership
return.
If"Yes,' the partnership is not required to complete Schedules L, M-l, and M-2; Item F on page 1 of Form 1065;
er Item J on Schedule K-1 ...............................................................................................................................................................
§ Does this partnership have any foreign partners? .................................................................................................................................
7 Is this partnership a publicly traded partnership as defined in section 469(k){2)? .......................................................................................
8 Has this partnership filed, or is it required to file, Form 8234, Application for Registration of a Tax Shelter? ...................................................
S At any time during the calendar year 1999, did the partnership have an interest in or a signature or other authority over e financial account in
a foreign country (such as a bank account, securities account, or other financial account)?
(See the inst ructions for exceptions and filing requirements for Form TD F 90-22.1 .)
If"Yes," enter the name of the forsign country. ·
10 During the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust?
If 'Yes," the partnership may have to file Form 3520 or 926. See page 18 of the instructions ........................................................................
11 Was them a distribution of property or a transfer (e.g., by sale or death) of a partnership interest during the tax year?
If'Yes,' you may elect to adjust the basis of the partnership's assets under section 754 by attaching the statement described
under Elections Made By the Partnership
Designation of Tax Matters Partner
Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this retu m:
Name of
designatedTMP · MAYBELLE L. CLAYPOOL, INC.
Identifying
numberofTMP · 25-1841672
No
X
X
X
X
X
X
X
X
X
Address of
15 MAYBELLE COURT
· MECHANICSBURG, PA 17055
designated TMP
Form 1065 (1999)
15430809 706230 72000 1999.08200 WORTHINGTON DEVELOPMENT, L. 72000
Form1065(1999) WORTHINGTON DEVELOPMENT, L.P. 25-1847417 Paf~e9
~i~ ,rtners' Shares f Income, Credits, Deductions, etc.
(a) Distributive share items (b) Total smount
Ordinary income (lose) from trade or business activities (page 1, line 22) ...................................................... I 1 4 r 7 0 7.
2 Net income (loss) from rental real estate activities (attach Form 8825) ............................................................ 2
3 a Gross income from other rental activities ................................................ 3a
b Expenses from other rental activiUes (attach schedule) .............................. 3b
c Net income (loss) from other rental activities, Subtract line 3b from line 3a ................................................... 3c
4 Portfolio income (Ioss):
a Interest income .......................... ....................................................................................................... 4a
e b Ordinau dividends .............................................................................................................................. 4b
c Royalty income ................................................................................................................................. 4c
Eo d Net short-term capital gain (loss) (attach Schedule D (Form 1065)) ............................................................... 4d
_~ e Net long-term capital gain (loss)(attach Schedule D (Form 1065)):
(1) 28% rate gain (loss) · (2) Total for year ....................................... ·
f Other pollfolio income (loss) (attach schedule) ....................................................................................... 4f
6 Guaranteed paymentsto partners ......................................................................................................... 5
6 Net section 1231 gain (loss) (other than due to casualty or theft) (attach Form 4797) ....................................... 6
7 Other income (loss) (attach schedule) ...................................................................................................... 7
ce 8 Charitable cofitdPutions (attach schedule) ................................................................................................ 8
~ 9 Section 179 expense deduction (attach Form 4562) ................................................................................. 9
-~ 10 Deductions related to porttollo income (itemize) ....................................................................................... 10
¢3 11 Other deductions (attach schedule) ......................................................................................................... 11
12 S Low-income housing credit;
(1) From partnerships to which section 42(])(5) applies for property placed in service before 1990 ..................... 12a(1)
(2) Other than on line 12s(1) for property placed in service before 1990 ......................................................... 12a(2)
e (3) From partnerships to which section 42(j)(5) applies for property placed in sew]ce after 1989 ........................ 12a 13)
(4) Other than on line 12a(3) for property placed in service after 1989 ............................................................ ' 12s(4)
b Qualified rehabilitation expenditures related to rental real estate activities (attach Form 3468) .............................. 12b
c Credits (other than credits shown on lines 12a and 12h) related to rental real estate activities .............................. 12e
d Credits related to other rental activities ...................................................................................................... 12d
13 Other credits ....................................................................................................................................... 13
'~ 14 a Interest expense on investment debts ...................................................................................................... 14a
i~ ~ b (1) Investment income included on lines 4a, 4h, 4c, and 4f above ...............................................................
1
4b{1
_¢ E_¢ (2) Investment expenses included on fine 10 above ................................................................................. 14b(2)
' 15 s Net samings (loss) from seE-employment ................................................................................................ l§a 0.
~,~ b Gross farming or fishing income ............................................................................................................ 15b
o Gross nonfarm income ........................................................................................................................ 15s
~i 16 a Depreciation adjustment on property placed in service after 1986 .................................................................. 16a
b Adjusted gain or loss ........................................................................................................................... 13P
~ ~ c Depletion (other than oil and gas) ......................................................................................................... 1
.EEL d (1) Gross income from oil, gas, sndgecthermalproperties 1§d(1)
~ (2) Deductions allocable to oil, gas, and geothermal properties .................................................................. 18d(2)
O Other adjustments and tax preference items (attach schedule) ..................................................................... 1§o
b Name of foreign country or U.S. possession ·
c Total gross income from sources outside the United States (attach schedule) ................................................ 17s
d Total applicable deductions and losses (attach schedule) ........................................................................... 17d
._~ e Tctal foreign taxes (check rme): · ~-1 Paid ~1 Accrued ......................................................... 17e
E f Reduction in taxes available for credit (attach schedule) 17f
u. o Other foreign tax Information {attach schedule) ....................................................................................... 17g
18 Section 59(e)(2) expenditures: a Type · b Amount · 18b
lg Tax-exempt interest income .................................................................................................................. 19
~ 20 Other tax-exempt income ..................................................................................................................... 20
~ 21 Nondeductible expenses ........................................................................................................................ 21
22 Distributions of money (cash and marketable securities) .............................................................................. 22 6,0 0 0
23 Distributions of property other than money ................................................................................................ 23
24 Other items and amounts required to be reported separately to partnem (attach schedule) .................................
Form 1065 (1999)
911021 3
15430809 706230 72000 1999.08200 WORTHINGTON DEVELOPMENT, L. 72000
Form1065(1999) WORTHINGTON DEVELOPMENT, L.P. 25-1847417 Pa,qe4
Analysis of Net Income (Loss) 1
I Net income (loss). Combine Schedule K, lines 1 through 7 in column (b). From the result, subtract the 14,7 0 7 ·
sum of Schedule K, lines 8 through 1114a, 17e, and 18b
2 Analysis by ... I (ii) Individual (li) Individua . ' I (v) Exempt (vi) Nominee/Other
partnerGeneral partnerstype: (I) Corporate147 I (active) (passive) (iv) Partnership I organization
'l 14,560.
h Limited partners
Books Jlrsd ff Question 5 on Schedule B is answered 'Yes. )
Beginning of tax year End of tax year
Assets ~!al ................... (h) ~ . ....... [~! ............... o .... (d)
I Cash .......................................................... ~:~:~=::~:~:~=::~:::::.::~ ................................. ~ ...... ' '~ '
2a Trade notes and accounts receivable .................... : ........................ : ..........................................9 r 4 5 7 ·
6 Other currsntassets(attach schedule)
12a Intangible assets (amo,i,ble only) ......... ~:: ~::ii~:: ~::~::~ ::! i 7,626.
b Less accumulated amo~izaUon ............... 7 ~ 6 2 6 ·
~ ............................. 128,808.
16 Mo~, no~, bon~s p~abie in I., ~an 1 y--r .~.~.~.?:.~.?:*~,~.~ ~ ~ ~ ~:~:~:~:~[~ ~ ~ ~ ~:::~ ...........................................
17 ~hercurrsntliabil~ies(a~achschedule)... ~[ ::: .......................................:: :::.::.::.: :..::: :.:.::.. 2,016
22 Total liabil~ies and ~pital ..................... 0 · .............................. 499,915.
Reconciliation of Income (Loss) per Books With Income (Loss) per Return
(Not required if Question 5 on Schedule B is answered 'Yes." See page 29 o1 the instructions,)
Net income {loss) per books 14,7 0 7 8 ncome recorded on books this year not
........................ included on Schedule K, I nas 1 through
Income included on Schedule K, lines I through 7 (itemize):
4, 6, and 7, not recorded on books this year a Tax-exempt interest $
(itemize):
Guaranteed payments (other than health 7 Deductions included on Schedule K, lines 1
insurance) ................................................... through 11, 14a, 17e, and 18b, not charged
Expenses rscorded on books this year not against book income this year (itemize):
included on Schedule K, lines 1 through a Depreciation $
11, 14a, 178, and 18b (itemize):
Depreciation $
Travel and entertainment $ 8 Add lines 6 and 7 .......................................
g Income (loss) (Analysis of Net Income (Loss),
Add lines 1 through 4 .................................... 14,707 line 1). Subtract line 8 from lice 5 14,707,
I through 4 ..
l~m~t.,2~ Aha yss of Partners C )itel Accounts t required if Question 5 on Schedule B is answered "Yes.'}
I Balance at beginning of year ........................... 6 Distributions: e Cash ................................. 6,000.
2 Capital conthbuted dudng year ........................ b Prope~ ...........................
3 Netincome(Ioss)perbooks ........................... 14,707 7 Otherdecrsases(itamize):
4 Otherincreases (itemize): 7 0 7 · 9
it Add lines 6 and 7 ....................................... 6 r 0 0 0
S Add lines 1 through 4 .................................... 14, . BalanC~ at end of yemr. Sub,'act line S from line 5 .~----f3 0 7
e~1o41 4 Form 1065 (1999)
L5430809 706230 72000 1999.08200 WORTHINGTON DEVELOPMENT, L. 72000 1
4562
Depreciation and Amortization
(Including Information on Listed Property) OTHER
See _--~-~rate instructions. ~. Attach this form to your return.
OMB No. 1545-0172
1999
Attachment
Identifying number
25-1847417
WORTHINGTON DEVELOPMENT, L.P.
ti~i=i~i~ Election To Expense Certain Tangible Property (Section 179) (Note:
Maximum dollar limitation. If an entarpdea zone businees, see instructions .........................................................
Total cost of section 179 properb/placed in service. See instructions ...............................................................
Threshold cost of section 179 property before reduction in limitation ..................................................................
Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . ........................................................
Dollar limitation for tax year. Subtract line 4 from line 1. if zero or less, enter .0.. if married filing
Part V before
19,000.
$200,000
7 Listed propertT. Enter amount from line 27 .................................................................. I 7
8 Total elected cost of section 179 property. Add amounts in column (c). lines 6 and 7 .......................................... 18_:
9 Tentative deduction. Enter the smaller of line 5 or line 8 ....................................................................................
10 Carryover of disallowed deduction from 1998 ................................................................................................... 10
11 Business income limitation. Enter the smallar of business income (not less than zero) or line 5 ........................... 11
12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11
13 Carryover of disallowed deduction to 2000. Add lines 9 and 10, less line 12 ............ I~ I 13 I i~??~?:ii:i~i?i!::i?::~ii~!:~!?ii!i!!i!i::i:!i?~!~:i:?~i:???~i::!:::!iii?!i!i?:!!!~:?:i
Note: Do not use Pad II or Pad III below for listed property (automobiles, certain other vehicles, cellular telephones, carta/n computers, or property
used for entertainment, recreation, or amusement). Instead, use Pad V for Ii, ted property.
l!~.i~ill MACRS Depreciation For Assets Placed in Servios ONLY During Your 1999 Tax Year (Do Not Inolude Listed Property.} Section A - General Asset Account Election
14 Ifyou are maldng the election under section 168(i)(4)to group any assets placed in service during the taxyeer Into one or more general as~.t ~
accounts, check this box. See instructions
~ection B - General Depreciation Systam (GD$) (See instructions.)
15 a 3-yearproperty :::::::::::::::::::::::::::::::::::::::::::::::::::::::
d lO-year propady ........ ~ ...........
· 15-year property ........... ~ .........................
f 20-year propady ............ ~:: :~i:i:~:i:~:i~:~:~
g 25-year property ::::::::::::::::::::::::::::::::::::::::::::::::::::::: 25 yrs. S/L
/ 27.5 yrs. MM S/L
h Residential rental property / 27.5 }'rs. MM S/L
/ 3g yrs. MM S/L
i Nonresidential real property / MM S/L
Section C - Alternative Depreciation System (ADS) (See instructions.)
c 40-year 40 yrs. MM S/L
l:i~iiiit Other Depreciation (Do Not Inck,_~e_ Listed Property.) (See instructions.)
17 GDS and ADS deductions for assats placed in service in tax years beginning before 1099 ................................. 17
18 Property subject to section 168(f)(1) election ................................................................................................... 1918
19 ACRS and other depreciation
lii~i~ Summary (See instructions.)
212022 Total. For Listed property. Enter amount from line 26andassets onAdd the shown deductions appropr abOve ate°hand nee lineof placed 12, your lines in tatum, service 15 and Pattnemhips ...................................................................................................... during 16 in column the and current (g)' S corporations and year,lines enter 17 through the ' see instructions 20. Enter,,{ here ............... 2;i I!:I ! ?~ i i ii i i i i i ii!i?ii!?iiiiil}i!::iiiiiiiii!ii!i !iii!iii?iiiii?i i ill
portion of the basis attributable to section 263A costs ................................................ 22
LHA For Paperwork Reduction Act Notice, see the separate instructions. Form 4562 (1999)
15430809 706230 72000 1999.08200 WORTHINGTON DEVELOPMENT, L. 72000 1
Form 4562 (lggg)WORTH INGTON DEVELOPMENT, L · P · 25-1847417 Page 2
Ii~!~iii Listed property. Automobiles, Certain Other Vehiclee, Cellular Telephones, Certain Computers, and Property Used for
Entertainment, Reereetion, or Amusement
Note: For ~ny vehic e for which you are using the standard mileage rate or deducting lease expense, complete only 23a, 23b, columns (al
through (c) of 8~-~!nn A, all of Section B, and Section C if applicable.
Seotion A - Depreciation end Other Information (Caution: See instructions for limits for passenger automobiles.)
23a D0y0uhaveavidencet0supp0rtthebusinsss/investmentuseclaimed? )'---1Yes m-'-~No 23blf"Yasr'lstheevidencewritten? ~lYes~---1No
(e) (b) Date (o) (d) (e) I (f) I (g) (h) (i)
Sa~s for depmciat{on Rec0veu Method/ Depreciation Elected
placed in Business/ Cost or use only) ped0d
puslneaeytnvestrnmnt section 179
Type of prope~ service investment
(list vehicles first) use percentage other basis Convention deduction cost
24 PropetlyusedmorethanS0%inalualifiedbusinisiuse::
Property used 50% or less in a qualified business use:
26 Add amounts in column (hi. Enter the total here and on line 20, page 1 ......................................................
27 Add amounts in column (ii. Enter the total here and on line 7, paFle 1 I 27
Section B - Information on Use of Vehicles
Complete this section for vehicles used by a sole proprietor, partner, or other 'more than 5% owner,' or related person.
if you provided vehicles to your emp[oyese, first answer the questions in Section C to see if you meet an exception to completing this section for
those vehicles.
(s) (b) (c) (d) (e) (Q
28 Total business/investment miles driven dudng the Vehicle Vehicle Vehicle Vehicle Vehicle Vehicle
year (D0 NOT inciude commuting miles) ..................
29 Total commuting miles driven dudng the year ...
30 Total other personal (noncommuting) miles
driven ...............................................................
31 Total miles driven dudng the year.
Add lines 28 through 30 ....................................
Yes No Yes No Yes No Yes No Yes No Yes No
32 Was the vehicle available for personal use
during off-duty hours? ....................................
33 Was the vehicle used primarily by a more
than 5% owner or related person? ..................
34 Is another vehicle available for personal
use? ...............................................................
Section C - Questions for Employers Who Provide Vehicles for Use b f Their Employees
Answer these questions to determine if you meet an exception to completing Section B for vsh[cles used by employees who are not more than 5%
owners or related persons.
35 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your
employees? .................................................................................................................................................................................
36 Do you maintain a written policy statement that prohibits personal use of vehicise, except commuting, by your
employees? See instructions for vehicles used by corporate officers, directors, or 1% or more owners ..........................................
37 Do you treat all use of vehicles by employees as personal use? ...................................................................................................
38 DO you provide more than five vehicles to your employees, obtain information from your employees about
the use of the vehicles, and retain the information rocor/ed? .........................................................................................................
39 Do you meet the requirements concerning qualified automobile demonstration use? .....................................................................
Note: If your answer to 35, 36, 37, 38, or 39 is "Yes,' you need not complete Section B for the covered vehicles.
No
Amortization
(S) (b)
40 Amortization of costs that begins during you r 1999 tax year:
FINANCING COSTS 08:06~9
41 Amortization of costs that began before 1999 ................................................................................................... 41
42 Total. Enter here and on 'Other Deductions" or "Other Expenses" ne of your return .........................................
449.
449.
15430809 706230 72000
Form 4562 (1999)
6
1999.08200 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
)RM 1065 OTHER DEDUCTIONS STATEMENT 1
~SCRIPTION AMOUNT
~COUNTING
%NK CHARGES
~ORTIZATION EXPENSE
DTAL TO FORM 1065, LINE 20
1,325.
30.
449.
1,804.
2HEDULE A
OTHER COSTS
STATEMENT 2
ESCRIPTION
ETTLEMENT COSTS
NTEREST
OTAL TO FORM 1065,
PAGE 2, LINE 5
AMOUNT
828.
8,577.
9,405.
CHEDULE L
OTHER CURRENT LIABILITIES
STATEMENT 3
ESCRIPTION
ECRUED INTEREST
'OTAL TO SCHEDULE L,
LINE 17
BEGINNING OF
TAX YEAR
END OF TAX
YEAR
2,016.
2,016.
7 STATEMENT(S) 1, 2, 3
[5430809 706230 72000 1999.08200 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
DRM 1065 PARTNERS' CAPITAL ACCOUNT SUMMARY STATEMENT 4
~RTNER BEGINNING CAPITAL SCHEDULE M-2 WITH- ENDING
UMBER CAPITAL CONTRIBUTED LNS 3, 4 & 7 DRAWALS CAPITAL
1 0. 147. 147.
2 0. 7,280. 3,000. 4,280.
3 0. 7,280. 3,000. 4,280.
OTAL
0. 14,707. 6,000. 8,707.
8 STATEMENT(S) 4
~5430809 706230 72000 1999.08200 WORTHINGTON DEVELOPMENT, L. 72000 1
1
SCHEDULE K-1
(Form 1065)
Partner's Identifying number ~. 25-1841672
Partner's Share of Income, Credits, Deductions, etc.
For calendar year 1999 or tax year
,1999~ and ondine
Padnemhlp'$ Identifying number
Partnership's name, address, and ZIP code
MAYBELLE L. CLAYPOOL, INC.
15 MAYBELLE COURT
MECHANICSBURG, PA 17055
A This partneris a E~ genemlpartner ~ limited partner
~ limited liability company member
B What type ot entity is this partner? ~' S CORPORATION
C Isthis partners E~ domestic or a ~ foreign partner?
percentage of;
Profitshadng % I .0000000
Lossshadng ......... % i .0000000
Ownership ofcapital % 1.0 000000
E IR~Oe.t~where~i~shi@eledmtUm: PHILADELPHIA, PA
OMB No. 1545-0099
1999
~25-1847417
~ORTHINGTON DEVELOPMENT,
15 MAYBELLE COURT
~ECHANICSBURG, PA 17055
Partner's share of liabilities:
Nonrecourse .................................... $
Qualified nonrecourse financing ............ $
Other ............................................. $
491,208.
G Taxsheiter registration number ~'
H Check here if this partnership is a publicly traded partnership
as defined in section 469(k)(2) ................................................ E~
Checkapplicable boxes: (1) E~] Final K-1 (2) ~ Amended K-1
(c) Partner's share of lines (e) Capital account at end
(a)Cafiital account at (b) Capital contributed 3,4, and 7, Form 1065, (d) Withdrawals and of year combine
uegmning of year during year Schedule M-2 distributions columns (a)th rough (d))
o. 147. ( 147.
c) 1040 filers enter the
(a) Distributive share item (b) Amount amount in co umn (b) on:
I Ordinary income (loss) from trade or business activities 14 7.
....................................... See page 6 of ps,biers Instructions
2 Net income (loss) from rental real estate activities .................................................~ for Sch~lu~e K-1 (Fern 1065)
3 Net income (1ess) from other rental activities ......................................................
4 Portfolio income (loss): a Interest .................................................................. Sch. B, Part I, fine 1
"~ b Ordinary dividends ....................................................................................... Sch. B, Part II, line 5
~ c Royalties ................................................................................................... Sch. E, Part I, line 4
~ d Net short-term capital gain (loss) ..................................................................... Sch. D, line 5, COL (f)
uo e Net long-term capital gain (loss): (1) 28% rate gain (loss) .................................... Sch. D, line 12, cct.(g)
_c (2) Total for year .......................................................................................... Sch. D, line 12, col. (f)
f Other portlolio income (loss) (attach schedule) ................................................ Enter on applicable lines of your return
6 Guaranteed payments to partner ..................................................................... , ) for Seesche~uPage 6leOfK.1PartnefS{Fon~ 11nstmce°ne065)
6 Net Sec. 1231 gain (loss) (other than casualty or theft) ..........................................
7 Other income {'loss) (attach schedule) ............................................................... Enter on applicable fine of*four return
8 Charitable contdbutions (attach schedule) ......................................................... ach. A, line 15 or 16
{ ~ 9 Section 179 expense deduction
..................................................................... ~ee pa~es 7 and 8 of partner's
C~ 10 Deductions related to portfolio income (attach schedule) .................................... Instructions f~r$chedule
11 Other deductions (attach schedule) .................................................................. (Form roes)
i 13 Other credits ............................................................................................. (Enter on applicable lines of your mt~m)
14 a Interest expense on investment debts ............................................................... Form 4952, line1
b (1)investment income included on tines 4a, 4b, 4c, and 41above ~, see page 9 of Par~ne~s tnstrucflom
.............................. for Schedule K-1 (Form 1065)
i (2)Investment expenses included on line 10 above ...................................................
15 a Net earnings (loss) from self-employment ......................................................... Sch.., SE, Section A or B
b Gross farming or fishing income ~ See page 9 of partner's Instruction=
..................................................................... for Schedule K-1 (Form 1065)
O e Gross nonfarmincome .................................................................................
;~i~~ 16 a oepreciati°n adjustment °n pr°party placed in service attar 1986b Adjusted gain or loss ........................... } See Partner's ,ns~l~ct~ons forSchedule K-1 (Form 1065) and
.................................................................................... Instructions for Form 6251
e Other adjustments and tax preference items (attach schedule)
19 Tax'exempt interest income ........................................................................... Form 1040, line 8b
~ 20 Other tax-exempt income .............................................................................. see pages 9 anti lO of Partner's
~ 21 Nondeductible expenses .............................................................................. Instructions for Schedule K-1
(Form 10~5)
22 Distributions of money (cash and marketable securities) .......................................
23 Distributions of property other than money ........................................................
JWA For Paperwork Reduction Act Notice, see Form 1065 Instructions.
No Information Required for Page 2 Schedule K-1 (Form 1065) 1999
15430809 706230 72000 1999.08200 WORTHINGTON DEVELOPMENT, L. 72000
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
CHEDULE K-1 COLUMN C RECONCILIATION
ESCRIPTION
RDINARY INCOME (LOSS)
OTAL TO SCHEDULE K-i,
ITEM J, COLUMN C
AMOUNT
147 ·
147 ·
10 Partner Number 1
[5430809 706230 72000 1999.08200 WORTHINGTON DEVELOPMENT, L. 72000 1
2
SCHEDULE K-1 Partner's Share of Income, Credits, Deductions, etc.
{Form 1065) For calendar year 1999 or taxyear
Internal Fleve~l ue ~e~ice beginning ~ 1999~ and ending ~
Padner's identifying number · 190-16-2687 Partnershlp's Identtfylng number
Partner's name, address, end ZIP code Partnership's name, address, and ZIP Gods
OMB No. 1545-0099
· 1999
·25-1847417
Hi%RRY S. CLAYPOOL
1210 KINGS CIRCLE
MECHANICSBURG, PA 17055
A This partneris a ~ generalpartner [~[] limited partner
E~] limited liability company member
B Whattypeofentityisthispartner? · INDIVIDUAL
C Isthispartnera [~ domesticora r~ foreign partner?
pementage of:
Pmfit sharing % 49. 5000000o/
LOSS shadng % 49.5000000,
Ownership of capital % 4 9 · 5 0 0 0 0 0 0,
E IRS Center whe~ par~nemhip flied return: PH TT~A.DELPH"ra, Pa
WORTHINGTON DEVELOPMENT, L.P.
15 MAYBELLE COURT
MECHANICSBURG, PA 17055
Partner's share of liabilities:
Nonrecourse .................................... $
Qualfiied nonrecourse financing ............ $
Other ............................................. $
O Tax shelter registration number ·
H Check here It this partnership is a publicly traded partnership
as defined in section 469(k)(2) ................................................
I Checkappllcable boxes: (1) [~ FinaIK-1 (2) ~ Amended K-1
J Analysis olpartner's capitalaccount:
(o) Partner's share of lines (e) Capital account at end
(a Capital account at (b) Capital contributed 3, 4, and 7, Form 1065, (d) Withdrawals and OT year combine
beginning of year during year Schedule M-2 distributions columns (a) through
0 · 7,280. 3,000. 4,280.
(a) 1040 filers enter the
(a) Distributive share item (b) Amount amount in column (b) on:
I OrdinaP] income (loss) from trade or business activities 7,2 8 0
....................................... See page 6 of Partners InstmcSon
2 Net income (loss) from rental real estate activities ................................................] for S~adu~e ~-1 (Form lO65}
3 Net income (loss) from other rental activities ......................................................
4 Po~olio income (loss): a Interest .................................................................. Sch, B, Part I, line 1
'~ b OrdinaP] dividends ....................................................................................... Sch. B, Part II, fine 5
~,~ Sch. E, Part I, line 4
a
Royalties
~= d Net short-te~m capital gain (loss) ..................................................................... Sch. D, tine 5, col. (f)
~ e Net long-term capital gain (loss): (1) 28% rats gain (loss) .................................... Sch. D, line 12, col. (g)
_c (2) Total for year .......................................................................................... i Sob. D, line 12, col (f)
f Other portfolio income (loss) (attach schedule) ................................................ Enter on app,c.me ~in~ oryour return
5 Guaranteed payments to partner ..................................................................... ) forGeS page 6 of Parblef~ (nstrucnon$chedule K-1 (Form r~65)
6 Net sec. 1231 gain (loss) (other than casualty or theft) ..........................................
7 Other income (loss) (attach schedule) ............................................................... Ent.r on applicable ~lne of your tatum
8 Charitable contributions (attach schedule) ......................................................... Sch. A, line 15 or 16
_=.= g Section 179 expense deduction .....................................................................
Q.,-' 10 Deductions related to port/olio income (attach schedule) .................................... Ins~on. forsch~u~e
11 Other deductions (attach schedule) .................................................................. (Form
~ 13 0ther credits ............................................................................................. (Enter on ~pplicable line~ of your return)
~m.' 14 a Interest expense on investment debts ............................................................... Form 4952, line1
_~ b(1)lnvestment income included on lines 4a, 4b, 4c, and 4f above .............................. } See page e of Pa~'t~er's instr~ct~or
'~ (2)investment expenses included on line 10 above ................................................... for S~ledule K-1 (Form 1065)
~ 15a Netsamings (loss)from self-employment ......................................................... 0. S. ch. GE, Section AorB
b Gross/arming or fishing income .....................................................................~ see page 9 of ParZneFslnstmctior
0 C Gross nonfarm income .................................................................................
~ 1fie Depreciation adjustment on properly placed Jn service after 1996 ...........................~"~ see Pa~er"s ,nstru~ons for
b Adjusted gain or loss Schedule K-1 (Form 1065}
.................................................................................... Inatn~ctions for Form 6251
s Other adjustments and tax preference items (attach schedule) ..............................
19 Tax-exempt interest income ........................................................................... F?rm 1040, line 8b
~ 20 Other tax-exempt income ..............................................................................
~ 21 Nondeductible expenses .............................................................................. Instru~nons for Schedule K-1
22 Distributions of money (cash and marketable securities) ....................................... 3,0 0 0. t~orm ~oes}
23 Distributions of property other than money ·
JWA For Paperwork Reduction Act Notice, see FOrm 1065 Instructions.
No Information Required for Page 2 Schedule K-1 (Form 1065) 1999
911161
05-15-99 2
15430809 706230 72000 1999.08200 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
CHEDULE K-1 COLUMN C RECONCILIATION
ESCRIPTION
RDINARY INCOME (LOSS)
OTAL TO SCHEDULE K-I,
ITEM J, COLUMN C
AMOUNT
7,280.
7,280.
12 Partner Number 2
15430809 706230 72000 1999.08200 WORTHINGTON DEVELOPMENT, L. 72000__1
3
SCHEDULE K-1
(Form 1065)
Padners Identifying number · 182--14-6282
Partner's Share of Income, Credits, Deductions, etc. OMB No. 1545-009g
For calendar year 1999 or tax year 1999
,199% and endin~ ~ ·
Pertnemhlp's identifying number · 2 5-1 8 4 7 4 1 7
Pa,the,ship's name, address, and ZIP code
MAYBELLE CLAYPOOL
1210 KINGS CIRCLE
MECHANICSBURG, PA 17055
A This partneris a [~] generalpartner ~ limited pa~ner
~ limited liability company member
B Whattypeofent~isthispartner? · INDIVIDUAL
C Isthispartnera ~ domesticora ~ foreign partner?
0) Before change (11) End of
D Enter partner's or temltnation year
percentage cfi
Profd shaflng ...... % 49.5000000%
Loss sharing % 49.5000000
Ownership of capital % 4 9 · 5 0 0 0 0 0 0
E IRSCenter'MlereH.,t.=,.hlpffiectreturm PHILADELPHIA, PA
~ORTHINGTON DEVELOPMENT, L.P.
[5 MAYBELLE COURT
~ECHANICSBURG, PA 17055
Partner's share of liabilities:
Nonrecourse .................................... $
Qualified non recourse financing ............ $
Other ............................................. $
G Taxshelter registration number ·
Check here if this partnership is a publicly traded partnership
as defined in section 469(k)(2) ................................................
I Check applicable boxes: (1) ~ Final K-1 (2) E~ Amended K-1
account:
(a) Partner's share of lines (e) Ca. pitar account at end
a)Capltsl account at (b) Capital contributed 3, 4, and 7, Form 1065, (d) Withdrawals and or year combine
beg nning of year during year Schedule M-2 distributions columns (a) through (d))
0. 7,280 · 3,000 · 4,280.
c) 1040 fliers enter the
(a) Distributive share item (b) Amount amount in co umn (b) on:
I Ordinary income (loss) from trade or business activities 7,2 8 0 · '[
....................................... See page 6 of Partner's
2 Net income (loss) from rental real estate activities ................................................j for $che~iule K-1 (Form 1065)
it Net income (loss) from other rental activities ......................................................
4 Portfolio income (loss): a Interest .................................................................. Sch. B, Part I, line 1
b Ordinary dividends ....................................................................................... $ch. B, Part II, line 5
c Royalties ................................................................................................... Sob. E, Part I, line 4
~ d Nat short-term capital gain (loss) ..................................................................... Sch. D, line 5, col (f)
uo e Net tong-term capital gain (loss): (1) 28% rate gain (loss) .................................... Sch. D, line 12, col (g)
--~ (2) Total for year .......................................................................................... ach. D, line 12, col. (f)
f Other portfolio income (loss) (attach schedule) ................................................ En~ron applicable,nee of your r~um
5 Guaranteed payments to partner s,e page 6 of Pa~ner'$ Instruction
..................................................................... f~r Schedule K-1 (norm 1065)
6 Net sec. 1231 gain (loss) (other than casualty or theft) ..........................................
7 Other income (loss) (attach schedule) ............................................................... Enter on applicable line of your return
8 Charitable contributions {attach schedule) ......................................................... Sch. A, line 15 or 16
g Section 179 expense deduction
.....................................................................j See pagee 7 and S of Partner's
._~
¢3"' 10 Deductions related to portfolio income (attach schedule) Inst~Jceons for Schedule
.................................... {Forth 10~5)
11 Other deductions (attach schedule) ..................................................................
13 Other credits ............................................................................................. (Entre' on applieable line~ of your return)
m.' 14 a Interest expense on investment debts ...............................................................-,F°rm 4952, line1
~ b (1)investment income included on lines 4a, 4b, 4c, and 4f above ~, se~ page 9 of panne#s Instrucflo[~
.............................. for S~hed ule K-I (Form 1065)
~ (2)Investment expenses included on line 10 above ...................................................
~ ~ 15 a Net earnings (loss) from self-employment ......................................................... 0. Sch. SE, Section A or 9
~--~ b Gross farming or fishing income '~ See page 9 of Par~er'slnstructlor
..................................................................... for Schedule K-1 (Form 1065)
0 c Gross nonfarm income ................................................................................
~! 16a Depreciation adjostment on property placed in .er~ice a~ter 1996 ...........................J"J eeePartnef$ins~ruct,ons ~or
b Adjusted gain or loss schedule K-1 (Form1065) and
................................................................................... Instructions for norm 6251
e Other adjustments and tax preference items (attach schedule)
Form 1040, line 8b
I g Tax-exempt interest income .......................................................................... ·
~ 20 Other tax-exempt income .............................................................................. s~ pa~es 9 and 10 of Pa,roar's
~ 21 Nondeductible expenses .............................................................................. Ins~Uons for Schedule
22 Distributions of money (cash and marketable securities) ....................................... 3 ! 0 0 0 (Forth 10~5)
25 Distributions Of prone,b/other than money .........................................................
JWA For Paperwork Reduction Act Notice, see Form 1065 instructions,
No Information Required for Page 2 Schedule K-1 (Form 1065) 1999
[5430809 706230 72000 1999.08200 WORTHINGTON DEVELOPMENT, L. 72000__1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
2HEDULE K-1 COLUMN C RECONCILIATION
ESCRIPTION
RDINARY INCOME (LOSS)
OTAL TO SCHEDULE K-i, ITEM J, COLUMN C
AMOUNT
7,280.
7,280.
14 Partner Number 3
15430809 706230 72000 1999.08200 WORTHINGTON DEVELOPMENT, L. 72000 1
065
DEVELOPMENT
REAL ESTATE
233110
G Check applicable boxes:
R
U.S. Return of Partnership Income
For calendar year a0oo, or tax year Ueglnfllng ,2COO, and eAdlng
DEVELOPMENTr L.P.
MAYBELLE COURT
OMB No, 1545-009S
2000
Employer icientJflcafion
number
25-1847417
"1999
City or town, state, and ZIP
PA 17055
(1) Initial return (2) __ Final return (a) e in address
Check accounting method: (1) r-~ Cash (2) ~ Accrual (3) r--i Other(spec~) ~'
Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year b,'
(4)
383 889
Amended return
3
Caution: Include only trade or buslness income and expenses on lines la through 22 below. See the instructions for more information.
I a Gross receipts or sales .................................................................................... la 250 r 000. ?~i?~iiii
b Less returns and allowances ........................................................................... lb lc 250r000
2 Costofgoodssold (SchedulsA, Iinee) ............................................................................................................ 2 195r 130
~ 3 Gross profit. Subtract line 2 from line lc ............................................................................................................ 3 54,870
~o 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach schedule) 4
5 Net farm profit (loss) (attach Schedule F (Form 1040)) ....................................................................................... 5
6 Net gain (loss) from Form 4797, Par{ II, line 18 ................................................................................................... 6
7 Otherincome (loss) (attach schedule) ............................................................................................................ 7
8 Total income (loss). Combine lines 3 through 7 ............................................................................................. 8 5 4 r 8 7 0
3 Salaries and wages (other than to partners) (less employment credits) .................................................................. g
~ 10 Guarenteedpaymentstopartners .................................................................................................................. 10
~ 11 Repairsand maintenance .............................................................................................................................. 11
~ 12 Bad debts ................................................................................................................................................... 12
-' 13 Rent 13
~ 14 Taxes and licenses 14
o~ 15 Interest ...................................................................................................................................................... 15
~ 16 a Depreciation (if required, attach Form 4562) 13a
m b Less depreciation reported on Schedule A and elsewhere on return ........................... 1Sb 1SC
~ 17 Depletion (Do not deduct olland gas depletion.) ............................................................................................ 17
--~ 18 Rettrementplans. etc ..................................................................................................................................... 18
~ 19 Employee benefit programs ........................................................................................................................... lg
_o
~ 20 Other deductions (attach schedule) ........................... SEE STAT'RME~T 1 .............. 20 13,055
21 Totaldeductlono. Addtheamountsshowninthefarrightcolumnforlinesgthrough20 ....................................... 21 13r055
22 Ordinary Income (Ices) from trade or business activities. Subtract line 21 from line 8 ................................................ 22 41r815
Sign
Here ~ signatu~ of genered part, er or limited li.bilny ~mpany meml~er ~ate
~mp~reCs ~ Oate nmpamr'$ $$N er PrlN
Paid siunatum· Ch~k If
· en-employm~ ~'[~ 178--38--345'
Preparer'$ ~,o.~,n"'"""~'°ra'WAGGONE'~eon- ~' '-'r FRUTIGER & DAUB EIN ~.23--1583249
Uee0.ly ...~.,"'"P~oY~),... F'5006 E TRINDLE RD SUITE 200 ~'"~..o (717)506-1222
....... zmn ,:o,~o ME_CHANIC SBURGr PA 17050
JWA
011001
11-30-00
For Paperwork Reduction Act Notice, see separate instructions.
Form 1065 (2000)
Form1065 2000) WORTHINGTON DEVELOPMENTr L.P. 25-1847417 Pa,qa ~
i !~i~ii Cost of Goods Sold (see page 17 of the instructions)
I Inventory at beginning of year ........................................................................................................................... 1
2 Pumbases loss cost of Items withdrawn for personal use ....................................................................................... i 2
3 Cost of labor ................................................................................................................................................
4 Additional section 263A costs (attach schedule) ................................................................................................
5 Other costs (attach schedule) .......................... SEE STATEMENT. ~ .......
0 Total. Add lines 1 through 5 ...........................................................................................................................
7 Inventory at end ct year ....................................................................................................................................
8 Cost gl goods sold. Subtrect line 7 from line 6. Enter here and on page 1, line 2 .........................................................
g e Checkallmethodsusedforvaluingclodnglnventory:
(I) ~ Cost as described in Regulations section 1.471-3
(ii) ~'~ LowarofcostormarketasdescribedinRegulationssection1.471-4
(111) E~] Other (speci/y method osed and attach explanation) ·
481r307.
50~262.
40r120.
571~689.
376~559.
195,130.
b Check this box if thars was a writedown of'subnormal" goods as described in Regulations section 1.471-2(c) ................................................... ·~---]
s CheckthisboxfithaLIFOinventorymethodwasadoptedthistaxyearforanygoods ~fchecked, attachForrn970) .................................... ·~
d Do the rules of section 263A (for prope~ produced or acquired for resale) apply to the partnership? .............................................~ Yes ~-] No
e Wasthereanychangeindoterminingquantit~es'c~st'~rva~uati~nsbetw~en~p~ningandc~~singinv~nt~ry? .................................... E~Yes r-~No
if "Yes," attach explanation.
~iii!~ii~iil Other Information
I
a
C
e
2
3
What type of entity is filing this return? Check the applicable box: No
~ Domestic generel partnemhlp b ~ Domestic limited partnership
~ Domestic limited liability company d ~ Domestic limited liability partnership
r-'-] Foreign partnership f E~ Other·
Are any partners in this partnership also partnerships? ........................................................................................................................ X
During the partnership's tax year, did the partnership own any interest in another partnership or in any foreign
entity that was disregarded as an entity separate from its owner under Regulations sections 301.7701-2 and
301.7701-37 If yes, see instructions for required attachment X
4 Is this partnership subject to the consolidated audit procedures of sections 6221 through 6233? If"Yes," see
Designation of Tax Matters Partner below X
5 Does thio partnership meet allthree of the following requirements?
a The partnership's tctal receipts for the tax year were less than $250,000;
b The partnership's total assets at the end of the tax year were less than $600,000; and
c Schedules K-1 are filed with the retum and furnished to the partners on or before the due date (including extensions) for the partnership
return,
If"Yes;the partnership is not required to complete Schedules L, M-l, and M-2; Item F on page 1 ct Form 1065;
or Item J on Schedute K-1
5 Does th s partnership have any foreign partners? ................................................................................................................................. X
7 Is this partnership a publicly traded partnership as defined in section 489(k)(2)? .......................................................................................
8 Has this partnership filed, or is it required to file, Form 8264, Application for Registration of a Tax Shelter? ...................................................
9 At any time during the calendar year 2000, did the partnership have an interest in or a signature or other authority over a financial account in
a foreign country (sucb as a bank account, securities account, or other financial account)?
(See page 19 of the instructions for exceptions and filing requirements for Form TD F 90-22.1.)
fi'Yes," enter the name ct the foreign country. ·
16 Dudng the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust?
If"Yes,' the partnership may have to file Form 3520. See page 19 of the instructions .................................................................................
11 Was there a distribution of property or a trans~r (e.g., by sale or death) of a partnership interest during the tax year?
If"Yes,' you may elect to adjust the basis of the parfuership's assets under section 754 by attaching the statement described
under Elections Made By the Partnership on page 7 of the instructions ...................................................................................................
12 Enter the number of Forms 8865 attached to thio return ·
Designation of Tax Matters Partner (see page 19 ofthe instructions)
Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return:
Name of
designatsdTMP · MAYBELLE L. CLAYPOOLr INC.
15 MAYBELLE COURT
Address of ·
Identifying
numberctTMP · 25-1841672
designated TMP
MECHANICSBURGr PA 17055
Form 1065 (2000)
.5460809 706230 72000 2000.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
Form l06S (2000 WORTHINGTON DEVELOPMENTr L.P. 25-1847417 Paqe3
Iili~i~] Partners' Shares of Income, Credits, Deduct ons, etc.
(a) Distributive share items (b) Total amount
I Ordinaryincome(Ioss)fromtradeorbusinessactivities(pagel,line22) ...................................................... I 41r815 ·
2 Net income (loss) from rental real estate activities (attach Form 8825) ............................................................ 2
3 a Gross income from other rental activities ................................................ 3a
h Expenses from other rental activities (attach schedule) 3h
c Net income (loss) from other rental activities. Subtract line 3b from line 3a ................................................... 3c
~ 4 Portfolio income (Ioss): a Interest income .......................................................................................... 4a
~ h Ordinary dividends 4b
e~ c Royalty income ................................................................................................................................. 4c
Eo d Net short-term capital gain (loss) (attach Schedule D (Form 1065)) ............................................................... 4d
_¢ e Net long-term capital gain (loss) (attach Schedule D (Form 1065)):
(1) 28%ratagaln(Ioss)· (2) Totalforyear ....................................... · 4e(2)
f other portfolio income (loss) (attach schedule) ....................................................................................... 4f
5 Guaranteed paymentsto partners ......................................................................................................... 5
6 Net section 1231 gain (loss) (other than due to casualty or theft) (attach Form 4797) ....................................... 6
7 Other income (loss) (attach schedule) ...................................................................................................... 7
em 8 Charitable contributions (attach schedule) ................................................................................................ 8
~ expense (attach Form 4562) ................................................................................. 9
g
Section
179
deduction
10 Deductions related to portfolio income (itemize) ....................................................................................... 10
11 Other deductions (attach schedule) ......................................................................................................... 11
12 a Low-income housing credit: iii!?iiiiii!?!ii!i!iiiii!ii?i
(1) From partnerships to which section 42(j)(5) applies for property placed in service before 1990 ..................... 12a(1)
(2) other than on line 12a(1) for property placed in service before 1990 ......................................................... 12a(2)
~ (3) From partnerships to which section 42(j)(5) applies for property placed in service after 1989 ........................ 12a{3)
(4) Other than on line 12a(3) for property placed in service after 1989 ............................................................ 12a(4)
b Qualified rehabilitation expenditures related to rental rea~ estate activities (attach Form 3468) .............................. 12b
s Credits (other than credits shown on lines 12a and 12b) related to rental real estate activities .............................. 12c
d Credits related to other rental activities ...................................................................................................... 12d
13 other credits ....................................................................................................................................... 13
! 14 a Interest expense on investment debts ...................................................................................................... 14a
· ~ b (1) Investment income included on Hnes 4a, 4h, 4c, and 4f above ............................................................... 14b(1
E--c (2) Investment expenses included on line 10 above ................................................................................. 14b(2)
.~. 15 a Net earnings (loss) from self-employment 15a 0
r~. b Gross farming or fishing income ............................................................................................................ 15b
16 o Depreciation adjustment on property placed in service after 1986 .................................................................. 16a
b Adjusted gain or loss ........................................................................................................................... 16b
~ C Depletion (other than oil and gas) ......................................................................................................... 16c
E ,..,.a d (1) Gross income from oil, gas, and geothermal properties ........................................................................ 16d(1)
~ (2) Deductions allocable to oil, gas, and geothermal properties .................................................................. 16d(2)
e other adlustments and tax preference items (attach schedule) ..................................................................... 16e
17 a Name of foreign country or U.S. possession ·
~ c Foreign gross income sourced at partnership level:
~ (1) Passl~ · (2) US~dca~od~s(atach~Ch.) · [3) Generalllma~l~I~' 17C 3)
= d Deductions allocated and apportioned at partner level:
'~ (1) Intarsst expense · (2) other ......................................................... ·
,? e Deductions allocated and apportioned at partnership level to foreign source income:
f Totalfomigntaxes (check one): · Paid E~] Accrued~ ............................................................... 17f
18 Section 59(e)(2) expenditures: a Type · b Amount · 18b
~ 20 Other tax-exempt income ..................................................................................................................... 20
22 Distributions of money (cash and marketable securities) .............................................................................. 22 3 5 r 4 0 0.
23 Distributions of property other than money ............................................................................................... 23
24 Other items and amounts required to be reported separately to partners (attach schedule)
011021 Form 1065 (2000)
.5460809 706230 72000 2000.08000 WOR~HTNGTON DEVET.OPH~N~, ~. 72000 i
Form 1065 (2000)
Analysis of Net Income (Loss)
I Net income (loss). Combine Schedule K, lines 1 through 7 in column (b). From the result, subtract the
sum of Schedule K, lines 8 through 11 14a, 17f and 18b .............................................................................................
2 Analysis by _ _ (ii) Individual (iii) Individual · - I (v) Exempt
partner type: (I) L;orporate (active) (passive) W) Partnemhlp organization
a General pa,them 4 1 8.
b Limited partners I J t 4 1 ¢ 3 9 7.1 '
I!i~ii!i~i~i!l Balance Sheets per Books (Not required it Question 5 on Schedule n is answered "Yes."}
WORTHINGTON DEVELOPMENT¢ L.P. 25-1847417 Parle4
41¢815
(vi)Nominee/other
Assets Beginnin~of tax year End of tax year
? (bi ................ ~)...~ (d)
b Less allowance for bad debts .................. 9 r 4 5 7
4 U.S. government obligations !i ..:....,.......:~......:........:..; .'~:'.~.'~.~i.::~ .'.':.
b Less accumulatsd depreciation ...............
b Loss accumulated depletion ..................
b Less accumulated amortization ............... 7 r 626 5 r 383 ·
40r101'
21 Partners' capital accounts .............................. ~:~: ..................... ~:::~ ...... 8 ¢ 7 0 7 ~::::.::::l ...............................1 5,1 2 2,
Reconciliation of Income (Loss) per Books With Income (Loss) per Retum
(Not required it Question 5 on Schedure B is answered 'Yes.' See page 30 of the instructions.)
Net income (loss) per books ........................ 4 1 r 8 1 5. 8 Income recorded on books this year not
included on Schedule K, lines 1 through
Income included on Schedule K, lines 1 through 7 (itemize):
4, 6, and 7, not recorded on books this year a Tax-exempt interest $
(itemize):
Guaranteed payments (other than health 7 Deducgons included on Schedule K, lines 1
insurance) ................................................... through 11, 14a, 17f, and 18h, not charged
Expences recorded on books this year not against book income this year (itemize):
included on Schedule K, lines 1 through a Depreciation $
11,14a, 17f, and 18b (itemize):
Depreciation $
Travelandentertainment $ 8 Add lines 6 and 7 .......................................
g {ncome (loss) (Analysis of Net Income (Loss),
r ~...~.!!~.!..!~ 4 .................................... 41¢815. line 1). Subtract line 8 from line 5 41,815.
~ Acid fines 1 tnr0u~h
Ii~!iiii~ii~l Analysis of Partners' Capital Accounts, lot required if Question 5 on Schedule e is answered "Yes.'}
I Balance at beginning of year ........................... 8 r 707. 6 Distributions: a Cash ................................. 35,400.
2 Capitalcontdbutsd dudng year ........................ b Property ...........................
3 Net income (loss) per books ........................... 41 r 815 · 7 other decreases (itemize):
4 other increases (itemize):
8 Add lines 6 and 7 ....................................... 35r 400 .
.~..~dd lines 1 throuqh 4 ................................... 50 r 522. g Balanoe at end ofyear. SubtraCtlln. 8 ftomflnee 15, 122 .
011041
~2-m-oo 4 Form 1065 (2000)
5460809 706230 72000 2000.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
Depreciation and Amortization
(Including Information on Listed Property)
· See separate instnJctions. · Attaah this form to your return.
WORTHINGTON DEVELOPMENT~ L.P.
li! i il .ct.:
1 Maximum dollaHimitation. If an enterprise zone buslnass, see instructions .........................................................
2 Total cost of section 179 property placed in service. See instructions ...............................................................
3 Threshold cost of section 179 property before reduction in limitation ..................................................................
4 Reduction in limitation. Subtract line 3 from line 2. If zero or less. enter -0.. ........................................................
5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter-0-. If marded filing
eeparatelyr see instructions .................................................................................
6 (~) Des~ption of property (b) Cost {business use only)
OMB No. 1545-0172
2000
Sequ®n=e No. 67
Identifying number
25-1847417
you complete Part I.)
20,000.
$200,000
7 Listed property. Enter amount from line 27 .................................................................. I 7
8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 .......................................... 12
9 Tentative deduction. Enter the smaller of line 5 or line 8 ....................................................................................
10 Carryover of disallowed deduction frem 1999 ................................................................................................... 10
11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 ........................... 11
12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11
13 Carryover of disalJowed deduction to 2001. Add lines g and10,1ass line12 ............ ·1 13
Note: Do not use Part II or Part III below for listed property (automobiles, certain other vehicles, cellular telephones, certain computers, or property
used for enterteinment, recreation, or amusement). Instead, use Part V for listed property.
~MACRS Depreciation For Assets Placed in Service Only During Your 2000 Tax Year (Do not include listed property.)
Section A - General Asset Account Election
14 If you are making the e~ection under section 1680)(4) to group any assets placed in service during the tax year into one or more general ~sset
accounts, check this box. See instructions ........................................................................................................................................ · ~
Section B - General Depreciation System {GDS) (See instructions.)
5-year property .......
7-year property
15-year property :~:~
25-year property 25 yre. S/L
/ 27.5 yre. MM S/L
Residential rental property
/ 27.5 yre. MM S/L
/ 39 yrs. MM S/L
Nonresidential real property
/ MM S/L
Section C - Alternative Depreciation System (ADS) (See instructions.)
16 a Class life [:??::i::::::::::::::::i:::::i:::?i:i:i::::i:i::::i:::?i::i!ii S/L I
c 40-year 40 yrs. MM S/L
I!~i~!i~ Other Depreciation (Do not include listed proper~y.) (See Instructions.)
17 GDS and ADS deductions for assets placed in service in tax years beginning before 2000 ................................. 17
18 Property subject to section 168(f)(1) election ................................................................................................... 1 189
19 ACRS and other depreciation ..........................................................................................................................
li~:ii~ Summary (See instructions.)
2120andT°tal'Usted property. Enter amount from line 26onAddthe deductionSappropriate fromlines lineof your 12, lineSreturn.15partnershipsand ...................................................................................................... 16 in columnand S (g)'cOrpOratiOnsand lines 1.7seethr°ughinstructions20' Enter .................... here 2021f/i;i!ii;iiil ii ;ii ii!ili ?i!i il iii?ili II! ii!i;iiiiiii! I! i?ii:i!!i[iiiiiii i?iiii?iiil ;!!:!i;i I?; ?iii!i ilii! il
22 For assets shown above and placed in service during the current year, enter the 22
portion of the basis attributable to section 263A costs ................................................
LHA For Paperwork Reduction Act Notice, see the separate instructions. Form 4562 (2000)
16251
15460809 706230 72000 2000.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
Form 4562 ~000)WORTH INGTON DEVELOPMENT r L. P. 25-1847417 Page 2
I:!~ ~t L~atsd Pr°party (~ne~ude autcm°bl~es, certain ether vehicles, cellular tslsph°nes, °s~ain computers, and Pr°pe~Y used f°r ants~ainmsnt,
recreation, or amusement.)
Note= For any vehicle for which you are using the standard mileage rate or deducting/ease expense, complete only 23a, 23b, columns (a)
throu.qh (c) of Section A~ all of Section B~ and Section C if applicable.
Section A - Depreciation and Other Information (Caution: Sea instrdctions for limits forpessanger automobiles.)
23a Do you have evidence to support the business/investment use claimed? ~-[ Yes
(a) (b) Date (c) [ (d)
Type 0f pr0perty I~lace~l in Business/ I
(list vehicles first ) serv ce investment Cost or
use pementage other basis
24 Property used more than 50% in a c~ualified business use:
25 Property used 50% or less in a qualified business use:
r--] Ne
23b If 'Yes,' is the evidence written? r--] Yes ~] No
(f) (g) (h)
Recovery I Method/ Depreciation E?te,d~,
period Convention deduction sec~10nj/u
COST
: % S/L.
: : % S/L-
: : I %1 S/L.
26 Add amounts in column (11). Enter the total here and on line 20, page
27 Add amounts in column (i). Enter the total here and on line 7, page 1
Section B - Information on Use of Vehicles
Complete this section for vehiales used by a sole proprietor, partner, or other "more than 5% owner," or related pamon.
If you provided vehicles to your employees, first answer the questions in Section C to see if you meet an exception to completing this section for
those vehicles.
(s) (b) (c) (d) {e) (fl
Z8 Total business/investment miles driven during the Vehicle Vehicle Vehicle Vehicle Vehicle Vehicle
year (DO NOT include commuting miles) ..................
Z9 Total commuting miles driven dudng the year ...
30 Total other pamonal (noncommuting) miles
ddven ...............................................................
31 Total miles driven during the year.
Add lines 28 through 30 ....................................
Yes No Yes No Yes No Yes Ne Yes No Yes No
32 Was the vehicle available for personal use
dudng off.duty hours? ....................................
33 Wes the vehicle used primarily by a more
than 5% owner or re[eted person? ..................
~4 Js ancther vehicle available for personal
USS? ...............................................................
~ection C - Questions for Employem Who Provide Vehicles for Use by Their Employees
Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5%
owners or related parsons.
No
35 Do you maintain a wdtten policy statement that prohibits all personal use of vehicles, including commuting, by your
employees? .................................................................................................................................................................................
36 Do you maintain a written policy statement that prahibits personal uss of vehicles, except commuting, by your
employees? See instructions for vehicles used by corporate officers, directom, or 1% or more owners ..........................................
37 Do you treat all use of vehicles by employees es personal use? ...................................................................................................
38 Do you provide more than five vehicles to your employees, obtain information from your employees about
the use of the vehicles, and retain the information received? ........................................................................................................
39 Do you meet the requirements concerning qualified automobile demonstration use? .....................................................................
Note: If your answer to 35, 36, 37, 35, or39 is "Yes," you neeci not complete Section B for the covered vehicles.
Amortization
(a) I (b)
(c) (d) (e) (~}
40 AmortizaUon of costs that begins dudng your 2000 rix year:
41 Amortization of costs that began before 2000
42 Total. Add amounts in column (f). See instructions for where to report ............................................................... 2 r 2 4 3.
Form 4562 (2000)
16252
[5460809 706230 72000 2000.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
ORM 1065 OTHER DEDUCTIONS STATEMENT 1
ESCRIPTION
~COUNTING
EGAL
NGINEERING
tEAL ESTATE TAXES
[TILITIES
NSURANCE
~FFICE EXPENSE
~ANK CHARGES
~ORTIZATION EXPENSE
!OTAL TO FORM 1065, LINE 20
AMOUNT
3,850.
962.
1,259.
2,391.
1,000.
320.
855.
175.
2,243.
13,055.
ICHEDULE A OTHER COSTS STATEMENT 2
~ESCRIPTION
:ETTLEMENT COSTS
iNTEREST
!OTAL TO FORM 1065,
PAGE 2, LINE 5
AMOUNT
4,390.
35,730.
40,120.
:CHEDULE L OTHER CURRENT ASSETS STATEMENT 3
~ESCRIPTION
~UE FROM MAYBELLE L. CLAYPOOL, INC.
!OTAL TO SCHEDULE L, LINE 6
BEGINNING OF
TAX YEAR
END OF TAX
YEAR
768.
768.
7 STATEMENT(S) 1, 2, 3
5460809 706230 72000 2000.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
~CHEDULE L OTHER CURRENT LIABILITIES STATEMENT 4
)ESCRIPTION
%CCRUED INTEREST
tOTAL TO SCHEDULE L,
LINE 17
BEGINNING OF
TAX YEAR
END OF TAX
YEAR
2,016. 1,600.
2,016. 1,600.
FORM 1065 PARTNERS' CAPITAL ACCOUNT SUMMARY STATEMENT 5
?ARTNER BEGINNING CAPITAL SCHEDULE M-2 WITH- ENDING
~UMBER CAPITAL CONTRIBUTED LNS 3, 4 & 7 DRAWALS CAPITAL
i 147. 418. 565.
2 4,280. 20,699. 17,700. 7,279.
3 4,280. 20,698. 17,700. 7,278.
~OTAL
8,707. 41,815. 35,400. 15,122.
8 STATEMENT(S) 4, 5
5460809 706230 72000 2000.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
1
SCHEDULE K-1
(Form 1065)
Partner's identifying number ·
Partner's name, address, and ZIP code
Partner's Share of Income, Credits, Deductions, etc.
For calendar year 2000 or tax year
25-1841672
MAYBELLE L. CLAYPOOL, INC.
15 MAYBELLE COURT
MECHANICSBURG~ PA 17055
A This partneris a E~ general partner ~ limited partner
~ limited liability company member
B What type of entity is this partner? · S CORPORATION
C Isthis partnera E~ domesticate r'~ foreign partner?
percentage of:
Profit sharing % 1 · 0000000
LOSS sharing % 1.0000000
Ownership of capital % 1.0000000%
CINCINNATIr OH
,2000, and ending
Partnershlp's Identifying number ~- 2 5 -- 1 8 4 7 4 1 7
Partnerehip's name, address, and ZiP code
~ORTHINGTON DEVELOPMENT, L.P.
15 MAYBELLE COURT
MECHANICSBURG ~ PA 17055
F Partner's share of liabilities:
Nonrecourse .................................... $
Qualified non racouraa financing ............ $
Other ............................................. $
368,767.
G Tax shelter registration number ·
H Check here if this partnership is a publicly traded partnership
as defined in section 469(k)(2) ................................................ r--1
I Checkapplicableboxes: (1) ~] FinalK-1 (2) ~ AmsndedK-1
J Analysis of partner's capitalaccount:
(a) Capital account at (b) Capital contributed (c) Partner's share of lines (e) Capital account at end
3, 4, and 7, Form 1065, (d) Withdrawals and of year (combine
beginning of year during year Schedule M-2 distributions columns (a) through (d))
147. 418. ( 565.
(a) Distributive share item (b) Amount (c) 1040 filers enter the
amount in column (b) on:
I Ordinary income (loss) from trade or business activities ....................................... 418.
2 Net income (loss) from rental rear estate activities.~ See page 6 of Parfoer's Instruceor
................................................ for Schedule K- 1 ~Foml 1065)
3 Net income (loss) from other rental activities ......................................................
4 Portfolio income (ross): a Interest
.................................................................. Sch. 8, Part I, line 1
~ b Ordinary dividends ....................................................................................... Sch. B, Part II, line 5
~_~ c Royalties ................................................................................................... $ch. E, Part I, line 4
~ d Net short-term capital gain (loss) ..................................................................... Sch. D, line 5, col.
~ e Net long-term capital gain (loss): (1) 28% rate gain (loss) .................................... Sch. D, line 12, col. (g)
e: (2) Total for year 8ch. D, line 12, col. (f)
f Other portfolio income (loss) (attach schedule) ................................................ enter on appliCable lines of your return
5 Guaranteed payments to partner
6 Net sac. 1231 gain (loss (other than casualty or theft;) .......................................... ) fors~ p.~, e of Patna,s Instruceo,S~du~e K*r (Fo~ 1
7 Other income (loss) (attach schedule) ............................................................... EntJr on ednliCab~e iine of your return
, 8 Charitable contributions (attach schedule) ......................................................... Sch. A, line 15 or 16
_ g Section 179 expense deduction .....................................................................
Q ~ 10 Deductions related to portfolio income (attach schedule).~ See pages 7 and a of Partner's
.................................... Instructions for Schedule K-1
11 Other deductions (attach schedule) .................................................................. (Fo.n
~ ! 13 Other credits (Enter on eppflcable lines of your tatum)
Em. 14a
'~ Interest expense on investment debts ............................................................... Form 4952, line1
b (1)Investment income included on lines 4a, 4b, 4c, and 4f above .............................. ~, see page a of partners Instruction
~ 1~ (2)Investment expenses included on line 10 above ...................................................j lot Schedule K-~ (~om 1065)
.g~ 1§ a Net earnings (loss) from self-employment ......................................................... Sch. SE, Section A or 1~
'~--~ b Gross farming or fishing income
..................................................................... See page 9 of Partner's Instruction
0 C Dross nonfarm income forSchedule K-1 (Form1065)
~ 18' Depreciation adjustment on property pieced in serviceafter ,gB6~
b Adjusted gain or loss ........................... see Partner's Itqstructiorls for
................................................................................... Schedule K-1 (Form 1~5) and
a Other adjustments and tax preference items lattach schedule) .............................. Instmceons for Fom~ 6251
19 Tax-exempt interest income Form 1040, fine 8b
~ 20 Other tax..exempt income
~ 21 Nondeductible expenses see pages a an~ 10 of Partner's
.............................................................................. Inattuctiens for Schedule
22 Distributions of money (cash and marketable securities) ....................................... (nor~
23 Distributions of pronely other than money ........................................................ ·
~perwork Reduction Act Notice, see Form 1065 Instructions.
No Information Required for Page 2 Schedule K-1 (Form 1065) 200D
5460809 706230 72000 2000.08000 WORTHINGTON DEVELOPMENT, L. 72000
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
:CHEDULE K-1 COLUMN C RECONCILIATION
)ESCRIPTION
)RDINARY INCOME (LOSS)
?OTAL TO SCHEDULE K-i,
ITEM J, COLUMN C
AMOUNT
418 ·
418.
10 Partner Number 1
5460809 706230 72000 2000.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
2
SCHEDULE K-1 r
(Form 1065)
Internal Revenue So,vice be~innin§
PartneCs Identifying number ·
Partner's name, address, and ZiP code
190-16-2687
Partner's Sham of Income, Credits, Deductions, etc.
For calendar year 2000 or tax year
,2000, and ending]
Partnershlp's Identifying number ~'
Partnership's name. address, and ZiP code
HARRY S. CLAYPOOL
15 MAYBELLE COURT
MECHANICSBURG¢ PA 17055
A This partneris a r~ generalpartner ~ Jimited partner
~ limited liability company member
B Whattypeofentityisthispartner? · INDIVIDUAL
C Isthispartnera [~ domesticora [~ foreign partner?
pementage of:
Profit sharing ...... .% 49.5000000
Loss shadng % 49.5000000
Ownership of cap~tal % 4 9.5 00 0 0 0 0
CINCINNATI¢ OH
OMB No. 1545-0099
2000
25~1847417
~ORTH INGTON DEVELOPMENT,
].5 MA~BELLE COURT
~ECHANICSBURG¢ PA 17055
F Partner's share of liabilities:
Nonrecoume .................................... $
Qualified nrmrecouree financin9 ............ $
Other ............................................. $
n.Po
G Tax shelter registration number ·
H Check bern if this partnership is a publicly traded partnemhip
as defined in sect[on 469(k)(2) ................................................ ~
J Analysis of partner's capital account:
I Check applicable boxes: (1) [~ Final K-1 (2) E~ Amended K-1
(a) Capital account at (b) Capital contributed (c) Partner's share of lines (e) Capital account at end
3, 4, and 7, Form 1065, (d) Withdrawals and of year (combine
beginning of year during year Schedule M-2 distributions columns {a) through
4r280' 20r699. 17r700 7¢279.
(a) Distributive share item (b) Amount (c) 1040 filers enter the
amount in column (h} on:
I Ordinary Income (loss) from trade or business activities ....................................... 2 0 r 6 9 9
2 Net income (loss) from rental real estate activities.~ See page 6 of ParlneCs Instrucnor
................................................ for Schedule K-1 (Form 1065l
3 Net income (loss) from other rental activities ......................................................
4 Portfolio income (loss): a Interest
.................................................................. Sch. B, Part I, line 1
b Ordinary dividends ....................................................................................... Sch. B, Part Il,line 5
c Royalties Sch. E, Part I,line 4
d Net short-term capital gain (loss) ..................................................................... Sch. D, line 5, col. (f)
e Net Iong-tarm capital gain (loss): (1) 28% rate gain (loss) .................................... 8ch. D, line 12, col. (g)
(2) Total for year Sch. D, line 12, col. (f)
f Other po~olio income (loss) (attach schedule) ................................................ Enter on appJicable lines of your return
5 Guaranteed payments to partner .....................................................................
6 Net sec. 1231 gain (loss other than casualty or the[t) .............................. ) fo[See page 6 of Partnefslnstru~earschedule K-1 (Form 106S}
7 Other income (loss) (attach schedule) ............................................................... Enter on applicable line of your return
8 Charitable contdbuUons (attach schedule) ......................................................... Sch. A, line 15 or 16
g Section 179 expense deduction .....................................................................
10 Deductions related to portfolio income (attach schedule) '~ Se~ pages 7 and 8 of Partnefs
.....................................~ InstnJcflon$ for Sch~:tule K- 1
11 other deductions (attach schedule) .................................................................. (Form lose)
13 Other credits (Enter on applicable lines of your return)
140 Interest expense on investmentdebts
............................................................... Form 4952, line1
b (1)investment income included on lines 40, 4b, 4c, and 4f above .............................. ~, s~e page 9 of Partner's Instruction
(2)Investment expenses included on line 10 above ................................................... forS~e~[e K-1 (Fo,~ ~nos)
J
15 a Net earnings (loss) from self-employment ......................................................... 0 Sch. SE, Section A or 0
b Gross farming or fishing income
................................................................... ~ee page 9 of Partner's Instruction
100 Depreciation adjustment on properbj placed In ,erviceafter 1986.,~
................................................................................... Schedule K-1 (Form 1065) and
e other adjustments and tax preference items (attach schedule) Instructions for Forth 6251
19 Tax-exempt interest income
........................................................................... Form 1040, line 8b
20 other tax-exempt income
.............................................................................. Instructions for Schedure K*I
22 Distributions of money (cash and marketable securities) ....................................... 1 ? ¢ 7 0 0 (Fo.~
23 Distributions of property other than money .........................................................
No Information Required for Page 2 Schedule K-1 (Form 1065) 2000
mperwork Reduction Act Notice, see Form 1066 Instructions.
011161
03-15-00
5460809 706230 72000 2000.08000 WORTHINGTON DEVELOPMENT, L. 72000
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
~CHEDULE K-1 COLUMN C RECONCILIATION
)ESCRIPTION
DRDINARY INCOME (LOSS)
tOTAL TO SCHEDULE K-l,
ITEM J, COLUMN C
AMOUNT
20,699.
20,699.
12 Partner Number 2
5460809 706230 72000 2000.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
3
SCHEDULE K-1
(Form 1065)
Def~'tment of the Treasmy
Internal Reve~ue Servfoe beginning
Partner's identifying number ·
Partner's name, address, and ZIP code
182-14-6282
Partner's Share of Income, Credits, Deductions, etc.
For carendar year 2000 or tax year
,2000~ and ending
Partnershlp's identifying number ·
Partnerahip's name, address, and ZiP code
MAYBELLE CLAYPOOL
15 MAYBELLE 'COURT
MECHANICSBURGr PA 17055
A This partnerisa r~ generalpartner ~ limited partner
E~] limited liability company member
B What type of entity is this partner? · INDIVIDUAL
C Isthis partnera E~ domesticora r-~ foreign partner?
pementage of:
Profit sharing % 49.5000000.O/o
LOSS sharing % 49.5000000,
Ownership of capital % 49 · 5000000,
IRSOenterwher~parme~hipfll~mtum: CINCINNATIr OH
fial account:
OMB No. 1545-0099
. 2000
25-1847417
LoP.
WORTHINGTON DEVELOPMENT,
15 MAYBELLE COURT
HECHANICSBURGr PA 17055
F Partner's sham of liabilities:
Nonrecoume .................................... $
Qualified non mcoume financing ............ $
Other ............................................. $
G Taxshelter registration number ·
H Check here if this partnership is a publicly traded partnsmhip
as defined in section 469(k}(2) ............................................... ~
Check applicable boxes: (1) E~ Final K-1 (2) E~ Amended K-1
(c) Partner's share of lines (e) Capital account at end
(a) Capttal account at (b) Capital contributed 3, 4, and 7, Form 1065, (d) Withdrawals and of year (combine
beginning of year during year Schedule M-2 distributions columns (a) through (d))
4r280. 20r698' I 17r700- 7r278.
(a) Distributive share item (b) Amount (c) 1040 filers enter the
amount in column (b) on:
I Ordinary income (loss) from trade or business actMties ....................................... 20r698. ']
2 Net income (loss) from rental real estate activities.~ See page 6 of Partner's Instruotior
................................................ for Schedule K-1 (Fon~ 1065}
S Net income (loss) from other rental activities ......................................................
4 Portfolio income (loss): a Interest .................................................................. Sch. B. Part I, line 1
b Ordina~ dividends ....................................................................................... Sch. B, Part Il, line 5
c Royalties ................................................................................................... Sch. E, Part I, line 4
d Net short-term capital gain (loss) ..................................................................... Sch. D, line 5, col (f)
e Net long-term capital gain (loss): (1) 28% rate gain (loss) .................................... Sch, D, line 12, col (g)
(2) Total for year .......................................................................................... Sch. D, dna 12, col. (f)
f Other portfolio income (loss) (attach schedule) ................................................ enter on applicable llne~ of your returd
S Guamntsed payments to partner .....................................................................
6 Net sec. 1231 gain (loss other than casualty or the/t) ................................... ) ~rs"" pages=,edu~ee of P.~.~(_i (Fom~ lfost'~cS°"
7 Other income (loss) (attach schedule) ............................................................... Enter on applicable line of ¥ou~ tatum
8 Charitable contributions (attach schedule) ......................................................... Sch. A. line 15 or 16
9 Section 179 expense deduction ..................................................................... !1
10 Deductions related to portfolio income (attach schedule) see pages 7 anci 8 of Partner's
.................................... Insb'ucUons for Schedule K-1
11 Other deductions (attach schedule) .................................................................. IForm lO65)
13 Other credits (E~ter on applicaole lines of your retum
14 a Interest expense on investment debts Form 4952. linel
(2)Investment expenses included on line 10 above ................................................... for Schedule K-1 (Fon~ 1065)
l§a Net earnings (loss) from self-employment ......................................................... 0
Sch. SE, Sec fiDO A or B
b Gross farming or fishing income ..................................................................... ~*~ nee ;~age g of Partner's ~s'~-dcUon
C Gross nonfarm income ................................................................................./ forScheCfule K-1 (Form 1065)
b Adjusted gain or loss .................................................................................... Sche~u,e K-1 (Forte 10651
19 Tax~xempt interest income
........................................................................... Form 1040. line 8b
20 Other tax-exempt income .............................................................................
22 Distributions of money (cash and marketable securities) ....................................... 1 7 r 7 0 0 Corm 10o5)
2-~ Distdbufions of property other than money .........................................................
JWA For Paperwork Reduction Act Notice, see Form 1065 Instructions.
No Information Required for Page 2 Schedule K-1 (Form 1065) 2000
011161
05-15-00 3
5460809 706230 72000 2000.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
~CHEDULE K-1 COLUMN C RECONCILIATION
)ESCRIPTION
]RDINARY INCOME (LOSS)
~OTAL TO SCHEDULE K-i,
ITEM J, COLUMN C
AMOUNT
20,698.
20,698.
14 Partner Number 3
L5460809 706230 72000 2000.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
65 u.s. Return of Partnership Income I oMe.o, e4 oo
2001
DEVELOPMENT
REAL ESTATE
233110
Check applicable boxes:
Name or pain.hip
DEVELOPMENTr L.P.
MAYBELLE COURT
25-1847417
/1999
F Total asse~
IC$ PA 17055
(1) (2) (3) :hange (4)
Checkaccountingmethod; (1) r--] Cash (2) r~ Accrual (3) ~ Other(specify) ~'
Number of Schedules K-l, Attach one for each pemon who was a partner at any time during the tax year ~'
203,321
;schange (5) E~] Amended return
Caution: Include only trade or business income and expenses on lines la through 22 below. See the instructions for more information.
la Gross receipts or sales
.................................................................................... la 317r500.
b Less returns and allowances ........................................................................... 1bi ls 317~500.
2 Cost of goods sold (Schedule A, line 8)
ce 3 Gross profit Subtract line 2 from line lc............................................................................................................ 2 215r736.
............................................................................................................ 3 101r764.
=~ 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach schedule) 4
5 Net farm prord (ices) (attach Schedule F (Form 1040))
6 Net gain (loss) from Form 4797, Part II, line 18
7 Otherincome(Ioss)(attach schedule)
............................................................................................................ 7
8 Total Income (loss). Combine lines 3 through 7 ............................................................................................. 8 10 1 r 7 6 4
g Salaries and wages (other than to partners) (less employment credits) g
~ 10 Guaranteed payments to partners ..................................................................
~. 11 Repaire and maintenance .................................................................................................................. 10
:~ 12 Bad debts .............................................................................................................................. 11
= 13 Rent ................................................................................................................................................... 12
~ 14 Taxes andlicenses
~ 15 Interest ....................................................................................................................................... 14
· ~ ...................................................................................................................................................... 15
16 a Depreciation (if required, attach Form 4562) ......................................... 116aI
b Less depreciation reported on Schedule A and elsewhere on return ....... 116bt
· ~ 17 Depletion (Do not deduct olland gas depletion.) 16c
~ 18 Retirement plans, etc. ' ............................................................................................ 17
~ 19 Employee benefitprograms 19
· ~ 20 Other deductions (attach schedule) ....................... $1~.1~ STAT'R~ 1 20 2 0 r ~ 15
21 Total deductions. Add the amounts shown in the far right co umn for lines 9 through 20 ....................................... 21 2 0 r ~ 15
22 0rdlnary Income (loss) from trade or business activities. Subtract fine 21/rom line 8 22 81r3~9.
com~c~, and cOmplete. Declaration of arer o her th . , and to the b~t of my knowledge ar~c~ belief, it is
with the preparer show~q belOW
$1gnature°fuaneralPar~ner°rllmitedllabili~c~mpanymamber Date (aeel~str.)? ~ Yes [~ No
Preperer's Flr~'sner~(or~.W]~.~C'_~lq, D FRU~TGRR & DAUB EIN
Use0nly employs), ~'5006 E ?RTNDT,~ RD SLTT?E 200 P"°""~°' (717)506-1222
z,p co,e MECHANIC SBURGr PA 17050-3649
~oo~ Form 1065 (2001)
O1-22-02
Form 1065(2001) WORTHINGTON DEVELOPMENTr L.P.
~: ,.,,~,: '~-~-~1 Cost of Goods Sold (see page 18 0fthe instructions)
I Inventory at beginning of year
2 Purchases less cost of items witl~';;';~'; ~g;';;; ............................................................................................
3 Oost of labor .......................................................................................
4 Add ~i0na. se~io;'~'~;;~;'~;;;;;;';;~;~;~;~' ....................................................................................................
~ ~hercosts(atachschedule) ................................. S~ S~R~N~ 2
~ Total. Add lines 1 through 5 ...... : .................................
7 Invento~ at end of year ...........................................................................................................................
8 Coa of goods sol~. Subtract line 7 from line 6. Enter here and on page 1, line 2
g a Checkallmethodsusedforvaluingclosinglnvento~:
(I) ~ Cost as described in Regulations section 1.471-3
(11) ~ Lower of cost or manet as described in Regulations section 1.471q
(gl) ~ ~her(spec~method usedanda,achexCanaUon)~
25-1847417 Page2
376r559.
lr536.
28 118.
406r213.
190 477.
215r736.
b Check this box If them was a writedown of"subnormal" goods es described in Regulations section 1.471.2(c) ...................................................
¢ Cl~eck this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) · [-~
d D° the rules of section 263A (for property produced or acquired for resale) apply to the partnership? ........................ iiiiiiiiiiiiiiiiiiiii'" ~ '~s r~-[ No
e Was there any change in determining quantities, cost, or valuations between opening and closing inventory? .................................... E~Yes ~"] No
If "Yes,' attach explanation.
li:!~:,a~,~e~!B:il Other Infor,~a~ion
lO
11
5
12
Desiui,ai. ion of Tax Matters Par~i=er (see page 20 ofthe instructions)
Enter below the general partner designated as the tax mattem partner (TMP) for the tax year of this return:
Name of
designatedTMP · MAYBELLE L. CLAYPOOLr INC.
15 MAYBELLE COURT
Address of ·
designatedTMP MECHANICSBURGr PA 17055
What type of entity is filing this return? Check the applicable box:
a I--~ Domestic general partnemhip b ~ Domestic limited partnership
s I---"] Domestic limited liability company d E~ Domestic limited liability partnemhip
e r-'-] Foreign partnership f E~ Other·
Are any partners in this partnership also partnerships?
unng the partnersh p s tax year, d d the partnership own any Interest n another partnership or in any foreign
entity that was disregarded as an entity separate from its owner under Regulations sections 301.7701-2 and
301.7701-3? If yes, see instructions for required attachment
Is this partnership subject to the consolidated audit procedure; '~i';~ii~'~'~'~i' i~ ~(~'ii~ '~'~'ii~';;;i:'~;;~ .....................................................
Designation of Tax Matters Partner below
Does this partnership meet all three of the follow,eg require~;~i;; ..........................................................................................................
The partnership's total receipts for the tax year were less than $250,000;
The partnership's total assets at the end of the tax year were less than $600,000; and
Schedules K-1 are filed with the retum and furnished to the partners on or before the due date (including extensions) for the pa rtnership
return.
If'Yes,' the partnership is not required to complete Schedules L, iv1-1, and M-2; item F on page 1 of Form 1065;
or Item J on Schedule K-1
Does this partnemhip have any foreign partners? If"Yes," the partnership may have to file Forms 8804, 8805
and 8813. See page 20 of the instructions
Is this partnership a publicly traded partnsr~i;';;'~l';ii~;;;';rl;;~;;;;'~l~ii('ii~i,i ..........................................................................................
Has this partnership filed, or is it required to file, Form 8264, Application for Registration ct a Tax Shelter; .............................................
At any time during calendar year 2001, did the partnership have an interest in or a signature or other author~ over a financial account in
a foreign country (such as a bank account, securities account, or other financial account)?
See page 20 011he instructions for exceptions and filing requirements for Form TD F 90-22.1.
It"Yes," enter the name of the foreign country. ·
During the tax year, did the partnership receive a distribution from, or was it the grantor o1 or transferor to, a foreign trust?
If"Yes,' the partnership may have to file Form 3520. See page 20 of the instructions
Was there a distribution of property ora transfer (e.g., by sale or death) of a ,artnemhii'i~i;;;;i';;;i~;'ii;'i;)~;;;~ ..........................................
If Yes, you may elect to adjust the basis of the partnershlp's assets under section 754 by attaching the statement described
under Elections Made By the Partnership on page 8 of the instructions
Enter the number of Forms 8865 attached to this return ·
Ident~ing
numberofTMP · 25-1841672
No
X
X
X
X
X
X
X
X
X
X
JWA
Form 1065 (2001)
0¥02-022
0260412 706230 72000 2001.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
aWORTHINGTON DEVELOPMENT L.P.
rtners' Shams of Income Credits Deductions~_~etc.
~r9 items
1 Ordinary income (loss) from trade or business activities (page 1, Pine 22)
2 Net income (loss) from rental real estate activities (attach Form 8825) ......................................................
3 a Gross income from other rental activities
b Expenses from other rental activities (attach schedule) ..............................
c Net income (loss) from other rental activities. Subtract line'3b from line 3a
4 Portfolio income (loss): a Interest income
b Ordinary dividends ..........................................................................................
c Royalty income ..............................................................................................................................
d Net short-term capital gain (loss) (attach ScheduJe D (Form 1065)) ........................................................
e (1) Net long-term capital gain (loss) (attach Schedule D (Form 1065))
(2) 28% rate gain (loss) · (8) Gualified 5-year gain ·
f Other porttollo income (loss) (attach schedule)
5Guaranteed paymentsto partners .......................................................................................
$ Net section 1231 gain (loss) (other than due to casualty or theft) (attach Form 4797) .....
7 Other iocom~ttach sohed ule_~_ ........................
e Charitable contributions (attach schedule) ..................................................
9 Section f79 expense deduction (attach Form 4562) ..........................
10 Deductions related to portfolio income (itemize) .................................................................................
11 Other deductions~ .......................................................................................
'12 a Low-income housing credit:
(1) From partnerships to which section 42(j)(5) applies
(2) Other than on line 12a(1) ..............................................................................
b Gualifled rehabilitation expenditures related to rental real estate activities (attach Form 3468)
s Credits (other than credits shown on lines f2a and t 2b) related to rental real estate activities
d Credits related to other rental activities
1~ Other credits ......................................................................................................
q 4 a Interest expense on investment debts
b (q) ......................................................................................................
Investment income included on lines 4a, 4b, 4c, and 4f above
2 Investment ex enses included on line 10 above ...............................................................
15 a Net earnings (loss) from self-employment
b Gross farming orfishing income ................................................................................................
c Gross nonfarm income ............................................................................................................
JWA
16 a Depreciation adjustment on property placed in service after 1986
b Adjusted gain or loss ..................................................................
c Depletion (otherthan oii'~'~i ..............................................................................................................
d(1) Grossincomefromoil, gas, and~'~;r~'l'i;~i;~g~' ...........................................................................
(2) Deductions allocable to oil, gas, and geothermal prope~tie~' ......................................................................
,renca items..(~ch schedul_~_ ..................................................................
17 e Name of foreign country or U.S. possession · --
b Gross income from all sources
a Gross income sourced at pa~tne~'i~,~i .......................................................................................................
d Fore gn groas ucome ag. mad at ......................................................................................
(1) P~i~ ~ -
e Deductions allocated and appoAioned at paAner level:
(1) Inte~st expense ~
f Deductions aflocatsd and appo~ioned at pa~ne~hip leve~ to foreign scarca income:
g To~l foreign taxes (check one):
, in taxes available for credit a~ach schedule .............................
18 Section 59(e)(2) expend~ures: a Type ~
Tax~xempt inte rest in came ~ Amount
20 ~her tax~xempt income ..................................................................................................................
21 Nondeductible expenses .....................................................................................................................
22 Distdbutions of money (cash ~nd marketable seca~ies) ...............................................................
23 Distributions of prope~ ot~er than money ......
24 ~her~emsa~damountsre uiredtobere o~edse aratei to aAne~ aAachschedule ...
)260412 706230 72000
3
2001.08000 WORTHINGTON DEVELOPMENT, L.
25-1847417
81r349.
52r900.
Form 1065 (2001)
72000__1
Form 1065(2001) WORTHINGTON DEVELOPMENTr L.P.
Analysis of Net Income (Loss)
1 Net income (lose). Combine Schedula K, lines 1 through 7 In column (b). From the result, subtract the
sum of Schedule K, lines 8 through 11,14a, 17o, and 18h ............. . .......
b Limited partners ' 80,536.
I,...... '.-.-.--~:~:-:1 Balanc, Books
if Ouestioa 5 on Schedul,
Assets
1 Cash
2a Trade notes and accounts receivable .........
b Less allowance for bad debts
3 Inventodes
4 U.S. government obligations
5 Tax-exempt securities
6 other current assets (attach schedule) ......
7 Mortgage and real estate loans
8 other investments (attach schedule) .........
ga Buildings and other daprsciable assets ......
b Less accumulated depreciation
10a Depletah]e assets
b Less accumulated depletion
11 Land (net of any amortizaUon) ...............
12a Intangible assets (amortizable only) .........
b Less accumulated amortization
16 Other assets (attach schedule) ...............
14 Total assets
Liabilities and Capital
15 Accounts payable .................................
17 othercurrentliabilities(attachschedule) ...
18 AIl nonrecourse loans
20 Other liabilities (attach schedule) ............
21 Partners' capital accounts
22 Total liabilities and ca ital 3 8 3
Reconciliation of Income (Loss) per Books With Income (Loss) per Return
(Not rsquirsd if Question $ on Schedule B is answered "Yes,
I Net income (loss) per books ........................ 8 1 r 3 4 9 · 6 Income recorded on books this year not
2 income included on Schedule K, lines 1 through included on Schedule K, lines 1 through
7 (itemize):
4, 6, and 7, not recorded on books this year a Tax-exempt interest $
(itemize):
3 Guaranteed payments (other than health 7 Deductioos included on Schedule K, lines 1
Insurance) .................................................
through 11, 14a, 179, and 18b, not charged
4 F-xpenses recorded on books this year not against book income this year (itemize):
included on Sci~sdule K, lines 1 through a Depreciation $
11, 14a, 17g, and 18b (itemize):
a Depreciation $
h Travel and entertainment $
2 Capitalcontributed during year ........................[ '
.......... r ,349.
40therincre_ asea(itemize): ~ I '
......... J 96,47 .l
or -o2-o2 JWA
)260412 706230 72000 2001,08000 WORT~INGTO~ DEVET,OPMENT, L,
25-1847417 Papa4
............ I 81r349.
organization (vi) Nominee/Other
190,477.
End of tax,
768.
2r691.
203 321.
42,798.
116r578.
374.
Add lines 6 and 7 .......................................
9 Income (loss) (Analysis of Nal Income (Loss),
li~. Subtract line 8 from fine 5 .................. 8_.~j_~ 3
lot re uire~# Question 5 on Schedule
Distdbutions: a Cash .................................
b Property ........................... I
Other decreases (itemize):
Add lines 6 and~
D&I-,,~ at .n¢~ of year. SuDtm~ line e from ,Ins 5 I 43r571
4 Form 1065 (200f
72000
4_~3 571.
203 3.z_~_~21 ·
4562
Depreciation and Amortization
(InclUding Information on Listed Property) OTHER
See separate instructions. ~' Attach to your tax return.
(Rev. March 2002)
Deparament of ~e Treesu~
WORTHINGTON DEVELOPMENTr L.P.
Ji~ii~i~ Election To Expense Certain Tangible Prope~ Under Section 179 Note: If you have an), listed property, complete Part V befor,
2001
I Maximum amount. See instructions for a higher limit for certain businsases
2 Total cost of section 179 property placed in service (ssa instructions) ......................................................
3 Threshold cost of section 179 property before reduction in limitation ..................................................................
4 Reduction in limitation. Subtract line 3 from line 2. if zero or less, enter-0-
6 (a) D~&~i;~[;~,, of ptoper~ (b) Cost {business use only) (c) Electecl cost
? LJstedproperty. Enteramountfromline29 .......... . ..... I 7
6 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7
9 TentatNe deduction. Enterthe smaller of line 5 or line 8 ............... ' ........ :"'":::"":::'""::'""::*"
10 Carryover of disallowed deduction from line 13 of your 2000 Form 4562 ........10
11 Business income limitation. Enter the smaller of business income (not less than zaro) or line 5 11
12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 ............................... 12
13 Carryover of disallowed deduction to 2002. Add lines 9 and 10, less line 12 ............ ~' I 13 I
Note: Do not use Pat1 II or Part III below for listed property. Instead, use Part t4
~i~:~ ~::t Specrs Depreciation AIIowanco and Other Depreciation (Do not incrude listed property.)
24,000.
$200,000
15 Property subject to section 168(0(1) election (see instructions) .............................. 15
16 Other depreciation (includln, ACRS) (ssa instruct ons) .i]].*]]ii].]]ii]i..ii]i]..]]]]...iii.....i]...i] ''. .....
l?i~!it~ MAORS D~t,[e,~;,,[;on (Do not include listed property.) (See instructions.)
Section A
17 MACRS deductions for assets placed in service in tax years beginning before 2001 ..........................................
18 If you are electing under saction 168(0(4)to group any assets placed In sarvice dudng the tax
year into one or more general asset accounts, check here ...... .. ·
Section B - Assets Placed in Service During 2001 Tax'
/ MM
/ MM
i Nonresidential real property / MM
/ MM
Section C - Assets Placed in Service Daring 2001 Tax Year Using the Alternative Depreciation SYstem
20a CJasslife ~
~ MM
~Summary (See instructions.)
21 USted property. Enter amount from line 28
22Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21.
Enter here and on the appropriate lines of your return. Partnerships and S corporations - see instr .....................
23 For assets shown shove and placed in service dudng the current year, enter the I J
Portionofthebsaisattributabletosection263Acosts .... I 23 I
116251
03-21-02 LHA For Paperwork Reduction Act Notice, ssa separate instructions. Form 4562 (2001) (Rev. 3-2002)
5
)260412 706230 72000 2001.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
19a 3.year property
b 5-year property
c 7-year property
d 10-year property
e 15-ysar property
f 20.year property
25- ear ro art
h ResidentiaJ rental property
Form 4562 (2001) (Rev. 3-2002) WORTH INGTON DEVELOPMENT r L. P.
~i~:~:~: 25-1847417 Page-.
:~=~::~: :~! .... ,.~, ~y (include automobiles, cedmn other vehicles, ~llular telephon~, os~aln oomputem, and prope~y us~ for ente~ainment,
r~reation, or ~usement.)
Nete: For ~y vehicle for which you ~ using the st~d~ mileage ~te or deducting I~e expense.
though (c; of S~t/on A, ~/ of S~tlon B, ~d Section C If ~plic~le. comp/e~ only 24a, 24b. co/u~os (a)
Section A - Depr~;a~ion and ~her Inf~al;on (Ca~ion: 8~ iost~ctions for limits forp~en~r ~tomobil~.)
24a BO you have evidence t0 supp0~the bus}ness~nvestment use cla~med? ~ Yes ~ No ~ 24b If'Yes," s the evidence wr~en? ~ Yes ~ No
!ype °~)r°P'~ (b~I~:~ein Bu~ess/ C~*~* ~, ~*~:~l~o,- `" '" ,h)
(hat vehicles flat ) se~ice nvestment 0th~. busln~nv~tm~ .ec0y~ .Method/ Depreciation E~cted .
I I use~emantaa, l ..... ~ u..o~) , permuI uonventl0n ~ deduction
25 S~ciN depreciation ~lowance for Iist~ pm~Ay acquired after Septem~r 10, 2001, ~ ~:~:~:~:~:~:~
and used more th~ 50% in a qualified business uae ~ 25 ~
26 Pro~yueed morstha~ 50% in a~ual.edbusiness uae:
27 Property used 50% or less in a qualified business use:
28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1
29 Add amounts in column (i), line 26. Enter here and on line 7, page 1
S/L-
S/L-
S/L -
Section B - Information on Use of Vehicles
Complete this section for vehicles used by a sole proprietor, partner, or other "more than 5% owner," or related person.
If you provided vehicles to your employees, first answer the questions in Section C to see ~f you meet an exception to completing this section for
those vehicles.
(a) (b) (o) (d) (e)
30 Total businessAnvestment miles driven during the Vehicle Vehicle Vehicle Vehicle Vehicle Vehicle
year (do nct include commuting miles) ..................
31 Total commuting miles ddvan during the year ...
32 Total other personal (noncommuting) miles
driven
33 Total miles driven during the year.
Add lines 30 through 32 ..........................
34 Wes the vehicle available for personal use Yes No Yes No Yes No Yes No Yes No Yes No
during off.duty hours?
35 Wes the vehicle used primarily by a more
than 5% owner or related person? ..................
36 Is another vehicle available for personal
use?
}r Employers Who Provide Vehicles for Use by Their Emplc tees
Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than
owners or related persons.
37 Do you ,,~,=;~,t[n a written policy statement that prohibits all personal use of vehicles, including commuting, by your
employees? .................................................................................................................................................................................
38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your
employees? See instructions for vehicles used by corporate officers, directors, or 1% or more owners
36 Do you treat all use of vehicles by employees as personal use? ..........................................
40 D° Y°U ProVide mors than five vehicles to your employees, obtain information from your employees about
the use of the vehicles, and retain the information received?
41 DO Y°U mest the requirsmants concerning qualified automobile demonstration use?
Note: If your answer to 37, 36, 39, 40, or41 ia ..... ' ....................................................................
~n Yes, do not complete Section B for the covered vehicles.
No
(a) -~ (b) ~ (c} } (d)
42 Amortization of costs that ~
4,~ Amortization OT Costs that began before your 2001 tax year
44 Total. Add amounts in column (0. See instructions for where ~'~)'~3~"iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii..'
2 692.
116252
03-20-02
Form 4562 (2001) (Rev. 3-2002)
6
2001.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
~260412 706230 72000
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
ORM 1065 OTHER DEDUCTIONS STATEMENT 1
ESCRIPTION AMOUNT
ACCOUNTING
'EGAL
NGINEERING
REAL ESTATE TAXES
~NSURANCE
ANK CHARGES
~XPIRED OPTION
%MORTIZATION EXPENSE
OTAL TO FORM 1065, LINE 20
3,500.
1,595.
<1,213.>
4,418.
202.
221.
9,000.
2,692.
20,415.
~CHEDULE A
OTHER COSTS
STATEMENT 2
,'ESCRIPTION
~ETTLEMENT COSTS
NTEREST
~OMMISSIONS
'OTAL TO FORM 1065, PAGE 2, LINE 5
AMOUNT
4,378.
20,740.
3,000.
28,118.
!CHEDULE L
OTHER CURRENT ASSETS
STATEMENT 3
~ESCRIPTION
'UE FROM MAYBELLE L. CLAYPOOL,
OTAL TO SCHEDULE L, LINE 6
INC.
BEGINNING OF
TAX YEAR
END OF TAX
YEAR
768. 768.
768. 768.
7 STATEMENT(S) i, 2, 3
)260412 706230 72000 2001.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
CHEDULE L
OTHER CURRENT LIABILITIES
STATEMENT 4
-ESCRIPTION
CCRUED INTEREST
tOTAL TO SCHEDULE L, LINE
17
BEGINNING OF
TAX YEAR
END OF TAX
YEAR
1,600. 374.
1,600. 374.
?ORM 1065
PARTNERS' CAPITAL ACCOUNT SUMMARY
STATEMENT 5
PARTNER
'UMBER
BEGINNING
CAPITAL
1 565.
2 7,279.
3 7,278.
'OTAL 15,122.
CAPITAL SCHEDULE M-2 WITH-
CONTRIBUTED LNS 3, 4 & 7 DRAWALS
ENDING
CAPITAL
813. 1,378.
40,268. 26,450. 21,097.
40,268. 26,450. 21,096.
81,349. 52,900. 43,571.
8 STATEMENT(S) 4, 5
)260412 706230 72000 2001.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
1
SCHEDULE K-1 bo~inninfl
(Form 1065)
Partner's Identifying ,tuu,bur ·
Fartner'c name, aGdress, and ZIP code
Partner's Share of Income, Credits, Deductions, etc. . OMB NO. 1545-0099
Forou,cndaryear2o0t ortaxy.r 2001
~ ~ and ending] ~
25-1841672 Partnershlp's Identifying number · 25-1847417
Partnemhip's name, address, and ZiP code
MAYBELLE L. CLAYPOOL, INC.
15 MAYBELLE COURT
MECHANICSBURGr PA 17055
A This partneris a r~ generalpartner ~ limfied partner
~ limited liability company member
B What type of entity is this partner? · S CORPORAT ION
C Isthispartnera ~] domesticora ~r foreign partner?
percentage of:
Profit sharing ...... % i · 0000000%
Loss sharing ......... % i · 0 0 0 0 0 0 0 %
0wnership of capital % 1.0000000~
E IRSCenterwhe~par~e~Shlpflledr~tum: CTNC~'~ATTr OH f
J Analysis of partner's capitalaccount:
~ORTHINGTON DEVELOPMENT, L.P.
L5 MAYBELLE COURT
MECHANICSBURGr PA 17055
F Partner's share of liabilities:
Nonrecourse
Qualified non recoume financing ............ $
Other
159r750.
Tax shelter ragistratlon number ·
Check hers Jf this partnemhip is a publicly traded partnership
as defined in section 469(k)(2) ................................................ [~]
Checkapplicabre boxes: (1) ~ FinaIK-1 (2) ~ Amended K-1
la) Capital account at lb) Capital contributed lc) Partner's share of lines (e) Capital account at end
beginning of year during year 3, 4, and 7, Form 1065, (d) Withdrawals and of year (combine
Schedule M-2 distributions corumns la) through (d))
565- 813. lr378,
la) Bistributive share item lb) Amount {c) 1040 filers enter the
amount in column (b) on:
1 Ordinary ~ncome (loss) from trade or business activities ....................................... 8 1 3
2 Net income (loss) from rental real estate activities ................................................ $~ page 6 of Partner's Instmctior
3 Net income (loss) from other rental activities for $cf~eClule K-1 (Form Io65)
4 Portfolio income (loss); a Interest
.................................................................. Sch. S, Part I, fine 1
~ b Ordinary dividends
~ c Royalties ....................................................................................... Cch. B, Part Il, line 5
~ ' ............................ : ..................................................................... Sch. E, Part I, line 4
· d Net short-term capital gain (loss)
~ ..................................................................... Sch. D, line 5, col. (f}
e (1) Net long-term capital gain (loss ..... Cch. D, line 12, col. (f)
~ (2) 28% rate gain (loss)
(S) QualitJed 5-year gain ................................................................................. Sch. D, line 12, cch (g)
................................................................................. Line 4 of womsheet for Sc.h, D, line 29
f Other portfolio income (loss) (attach schedule) ................................................
5 Guaranteed payreents to partner Enter on applicable lines of your return
6 Net sec. 1231 gain (loss) (other than casualty or theft) } $~e page 6 of Partner's Ittstruceon
.......................................... for $=hedule K-1 {Form 1065)
7 Other income (loss) lattach schedule) ...............................................................
, 8 Charitable contributions (attach schedule) Et~tet on applicable lrne ef your return
Sch. A, line 15 or 16
~ ~ g Section 179 expense deduction .........................................................
~= 10 Deductions related to portfolio income (attach schedule) s. pages 7 anQ 8 of Partner's
.................................... Instructions for Schedule
11 Other deductions (attach schsdule) (Form 1065)
E ' 13 Other cradita ..................................................................
~ ' ' ............................................................................................ (Enfef on app~lc~t)le lines of your return)
E~ 14 a Interest expense on investment debts
e3 b (1)Investment income included on lines 4a, 4b, 4c, and 4f above
.............................. Se~ page 9 of Parfosr's InstnJcflon~
(2)Investment expenses Included on line 10 above ................................................... for SChedule K-1 (ForTh 1065)
15 a Net earnings (loss) from self-employment Sch. SE, Section A or B
~--~ b Gross farming or fishing income .........................................................
O C Gross nonfarm income ..................................................................... t See page 9 of Partners Instmctiona
for Schectule X-1 (Form 1065)
~ 16a Depreciation adjustment on property placed in service after 1986 ...........................
b Adjusted gain or loss see Partners Instructions for
................................................................................... $cheaule K*I (Form 1065) anQ
_ e Other adjustments and tax preference items (attach schedule) Instr~cUon$ for Form 6251
19 Tax-exempt interest income
........................................................................... Form 1040, line 8b
~ 20 Other tax-exempt income
~ 21 Nondeductible expenses ..............................................................................
.............................................................................. Instructions for Schedule
22 Distributions of money (cash and marketable securities) ....................................... (~
2~ Distributions of @ro@erty other than money .........................................................
111161
01-22-O2
)260412 706230 72000
istructtans. No Information Reqcired for Page 2 Schedule K-1 (Form 1065) 2001
2001.08000 WOR~HTNG~ON DEVELOPMEnt, T.. 72000
WORTHINGTON DEVELOPMENT,
:CHEDULE K-1
COLUMN C RECONCILIATION
25-1847417
~ESCRIPTION
ORDINARY INCOME (LOSS)
30TAL TO SCHEDULE K-I,
ITEM J,
COLUMN C
AMOUNT
813.
813.
10 Partner Number 1
260412 706230 72000 2001.08000 WORTHINGTON DEVELOPMENT, L. 72000__1
2
SCHEDULE K-1 Partner's S ..........
(Form 1065) .are OT {ncome, ureaiTs, ueauctions, etc. J OMB No, 1545-0099
Deparb~ent of U~e Treeau~ I FOr calendar year 2001 or taxyear r
s. ......... m
~_...:~ ...... :_._ . --~--~uo~ Pa~n '
Pa~nersname, addmss andZrPcode ~s~.fl ?...mb.r ~ 25-1847417
HARRY S. CLAYPOOL
15 MAYBELLE COURT
MECHANICSBURG, PA 17055
~ Thispartner}sa E~]oener-~part-~-er ~limitedpartnsr
~ limited ]iabJl~ company member
B WhattyPeoferdityisthispartner? · ]'NDIVTDUAL
C Isthispartnera ~ domesticora J-~ foreign partner?
O Enter partners p) aefore change pi) End of
or termination year
percentage of:
Profit shadng % 49.5000000%
Loss shadng % 49 ·5000000%
Ownership of capital % 49 ·5000000%
IP. SCont~m,,~.,tu~.: CINCIN~ATT_L OH
hTORTHINGTON DEVELOPMENT,
15 MAYBELLE COURT
VlEC HANIC SBURG_~_ PA 17055
F Partner's share of liabilities:
Nonrecourse
Qualified nonrecourse financing ............ $
Other
Tax shelter rsgistration number ·
Check hem if this partnership is a publicly traded partnership
as defined in section 469(k)(2) ................................................ [~
Checka~ble boxes: (1) [~ FinaIK-I
J An~I account:
(a) Capital account at (b) Capital contributed (s) Partner's share of lines (e) Capital account at end
beginning of year during year 3, 4, and 7, Form 1065, (d) Withdrawals and of year (combine
Schedule M-2 distributions
columns (a} through (d))
7r279. 40r268. 26r450. 21r097.
(a) Distributive share ~tem
(b) Amount (s) 1040 filers enterthe
I Ordinary income (loss) from trade or business activities ....................................... 4 0 r 2 6 8 I amount in column {b) on:
2 Net income (loss) from rental real estate act k, Jties s~ pegs u of Partner's instruction
3 Net income (loss) from other rental activities ................................................ for ~ec~uJe K-1 (For7~ 1065)
4 P0rt/01i0 income (loss): a interest
b Ordinary dk, idends .................................................................. Sch. B, Part I, line 1
~ c Royalties ....................................................................................... Sch. B, Part II. line 5
................................................................................................... Sch. E, Part I, line 4
~ d Net short-term capital gain (loss) ........................
E e (1) Net long-term capital gain (loss) ' Sch. D, line 5, col. (f)
~ (2) 28% rate gain (loss) Sch. D, line 12, col (f)
(3) OuaJified 5-year gain ............................................................................ ScP. D, line 12, col. (g)
f Other portfolio income (loss) (attach schedule ......................................... I Joe 4 of worksheet for $ch. B, line 29
8 Guaranteed payments to partner EAter on applicable ~[nae of your tatum
.................................................................... S~ page 6 of Partner's {nstructions
6 Net sec. 1231 gain (loss) (other than casualty or theft) .......................................... fo~s~,~u,, K-~ (Form 1065)
7 Other income (loss) (attach schedule) ..............................................................
, 8 Charitable contributions (attach schedule) Enter on appliCable I~e of your return
i_ 9 Section 179 expense deduction ......................................................... Sch. A, line 15 or 16
~-' 10 Deductions related to portfolio income (attach schedule) .................................... see pag~ y ~a e of P~ner's
11 Other deductions (attach schedule) Instructions for Schedule K-1
~ 13 Other credits
............................................................................................. (Ente~ on applicable lines of your return)
E~ 14a Interest expense on investment debts
i= ............................................................... Form 4952, line1
b (1)Investment income included on 0nee 4a, 4b, 4c, and 4f above .............................. ) s~ page 9 of Partner's instructions
~'~ (2)lnvestmerd expenses included on line 10 above ................................................... for Schedule K-1 (Form 1ou5)
'j 15 a Net earnings (loss)from serf-employment 0 Sch. SE, Section A or B
b Gross farming or fishing income ........................................................
................................................................................. for Schedule K-1 (Form 1065)
~ 16a Depreciation adjustment on property placed in service after 1986 ...............
e Other adiustmenta and tax preference items (attach schedule) .............................. schedule K-1 (Fo~q 1065) end
19 Tax-exempt interest income instruct)one for Form 6251
~ 20 Other tax-exempt income ........................................................................... Form 1040, line 8b
~ 21 Nondeductible expenses .............................................................................. t s~, pa~es 9 atld 10 o Parker's
.............................................................................. Instructions for SCh~u e K-1
22 Distributions of money (cash and marketable securities) ....................................... 2 6
~ 23 Distributions of ro e otherthan mona .........................................................
065 Instructions. No Information Required for Page 2 Schedule K-1 (Form 1065) 2001
260412 706230 72000 2001.08000 WORTHINGTON DEVELOPMENT, L. 72000 12
WORTHINGTON DEVELOPMENT, L.P.
~CHEDULE K-1 COLUMN C RECONCILIATION
25-1847417
)ESCRIPTION
ORDINARY INCOME (LOSS)
?OTAL TO SCHEDULE K-i,
ITEM J, COLUMN C
AMOUNT
40,268.
40,268.
12 Partner Number 2
260412 706230 72000 2001.08000 WORTHINGTON DEVELOPMENT, L. 72000
3
SCHEDULE K-1 ~
(Form 1065)
Partner's Iden~mber ·
Partner's name, address, and ZIP code
Partner's Share of Income, Credits, Deductions, etc.
For calendar year 2001 or tax year
I OM~o. 1545-0099
Partne~sh~~number ·~
Partnership's name, address, and ZiP code
182-14-6282
MAYBELLE CLAYPOOL
15 MAYBELLE COURT
MECHANICSBURG, PA 17055
A This partner is a ~-~ general partner [~ limited partner
r~ limited liability company member
B Whattypeofentityisthispartner? · INDIVIDUAL
C Isthls partnera ~ domestic or a -~ foreign partner?
D Enter partner's {0 Before change (ii) End of
pementage of:
Profltshadng ...... % 49 ·5000000,
Loss sharing ......... % 49. 5000000o/,
Ownerahip of capital % 49. 5000000~,
E ,~sc~.~.~a~_?~,,~m: CINCiNNATi OHL__~~
J ii account:
~ORTHINGTON DEVELOPMENT, L.P.
15 MAYBELLE COURT
MECHANICSBURGr PA 17055
F Partner'ssharaofgabilities:
Nonmcourae
Qualmednonracouraeflnancing ............ $
Other ............................................. $
G
H
TaxshelterragistratJon number ·
Check here if this partnership is a publicly traded partnership
as defined in section 469(k)(2) ................................................ [~]
Chec~le boxes:~ Final K-1 ~
(a) Capital account at (b) Capital contributed (c) Partner's share of lines (e) Capital account at end
beginning of year during year 3, 4, and 7, Form 1065, (d) Withdrawals and of year (combine
Schedule M-2 distributions
columns (a) through
7r278' 40r268. ( 26r450' 2-1 r 096.
(a) Distributive share item (b) Amount (c) 1040 filers enter the
I Ordinary income (loss) from trade or business activities amount in column (b) on:
2 Net income (loss) from rental real estate activities 40,268. s. page 6 of Partne(a Instmcfior
3 Net income (loss) from other rental activities ................................................ for $chaCtule K-1 (Folrn 1065}
4 Portfolio income (loss): a Intarest ......................................................
b Ordinary dividends .................................................................. Sch. B, Part I, line 1
~ c Royalties ....................................................................................... Sch, B, Part II, line 5
................................................................................................... Sch. E, Part I, line 4
~" d Net short-tarm capital gain (loss)
· I ach. D, line 5, col.
! e (1) Net long-term capital gain (loss) ..................................................................
E (2) 28% rate gain (loss) Sch. D, line 12, col. (f)
(3) Qualified 5-year gain ................................................................................ Sch. D, line 12, col. (g)
................................................................................. Line 4 of worksheet for $ch, D, line 29
f Other po~folio income (loss) (attach schedule)
$ Guaranteed payments to partner Enter on appliCable line~ of your return
6 Net Sec. 1231 gain (loss) (other than casua~ or theft ........................ ) see page s of partners
for Schedule K-1 (Form 1065)
7 Other income (loss) (attach schsduls) ...............................................................
, 8 Charitable contributions (aftach schedule) Enter on appliCable line of your return
.~_~ g Section 179 expense deduction ......................................................... Sch. A, line 15 or 16
¢3 '~ 10 Deductions related to portfolio income (attach schedule) see pages 7 an~ 8 e Partner's
.................................... Instructions for Schedule K-1
11 Other deductions (attach schedule) (Fom~ ro~s)
~ 13 other cradita ..................................................................
............................................................................................. (enter Oll applicable I~nes of your return)
i~ 14 a Interest expense on investment debts ............................................................... Form 4952,1inel
b (1)Investment income included on lines 4a, 4b, 4c. and 4f above .............................. } See page a of I:)ar:r?etas InstnJCflons
--c>.~ (2)Investment expenses included on line 10 above for Schedule K.1 (Fom11065,
_ 15 a Net earnings (loss) from self-employment ................................................... 0 · Sch. SE, Section A or 8
b Gross farming orfishing income ........................................................
0 c Gross nonfarm income ..................................................................... } se. page 9 of PartneOs Instruct OhS
................................................................................. for Schedu · K-1 (Fon~ 1065)
i 16a Depreciation adjustment on property placed in service after 1986 ...........................
[~ b Adjusted gain or loss 1 S~e Partners Instructions for
e Other adjustments and tax preference items (attach schedule) .............................. s~,,~ule K-1 (Form 1065} and
I g Tax-exempt interest income
~ 20 Other tax-exempt income ........................................................................... Form 1040. line 8b
~ 21 Nondeductible expenses .............................................................................. t $eepa ~aancJ OD Par~ner's
.............................................................................. nsttuct%ns for Schedule K-I
22 Distributions of money (cash and marketable securities) ....................................... 26 r 450 · (Fo.~ 1065)
23 Distributions of property other than money
JWA ........................................................
For Paperwork Reduction Act Nntie~ ~.. I:nrm 4 ~AI~
260412
706230 72000
one. No Information Required for Page 2 Schedule K-1 (Form 1065) 2001
3
2001.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P.
~CHEDULE K-1 COLUMN C
RECONCILIATION
25-1847417
)ESCRIPTION
ORDINARY INCOME (LOSS)
~OTAL TO SCHEDULE K-I,
ITEM J, COLUMN C
AMOUNT
40,268.
40,268.
14 Partner Number 3
260412 706230 72000 2001.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
o. 1065 u.s. Return of PartnershiP, a d®ndinglnCOme
DeCmtment of t~e Tmasury For c~dender year 2002, or tax year beginning ,-- 2002
Intemal Rever~ue Senti~e
DEVELOPMENT
REAL ESTATE
237210
25-1847417
~01/1999
~NGTON DEVELOPMENTr L.P.
100 MT LAUREL CIRCLE
PA 17110
G Check applicable boxes: (1) initial return(2) d retum (3) (4) __
R Check accounting method: (1) [~] Cash (2) ~ Accrua~ (3) ~ Other(specify) ·
I Number of Schedules K-1. Attach one for each pemon who was a partner at any time during the tax year ·
145e277 ·
Address change (5) E~ Amended return
3
Caution: Include only trade or business income and expenses on lines la through 22 below. See the instructions for more information.
155
1 a Gross receipts orsales .................................................................................... 1.~
b Less retums and allowances ...........................................................................
Cost of goods sold (Schedule A, line 8) ............................................................................................................
Gross profit. Subtract line 2 from line 1 c ............................................................................................................
Ordinary income (loss) from other partnemhips, estates, and trusts (attach schedule) ................................................
Net farm pro~ (loss) (attach Schedule F (Form 1040)) .......................................................................................
Net gain (loss) from Form 4797, Part Il, line 18 ...................................................................................................
7 Other income (loss) (attach schedule) ............................................................................................................
8 Total Income (lose). Combine lines 3 through 7
Salaries and wages (other than to partnem) (less employment credits) ..................................................................
10 Guaranteed payments to partnem ..................................................................................................................
12 Bad debts ..................................................................................................................................................
13 Rent .........................................................................................................................................................
15 Interest ....................................................................................................................................................
16 a Depreciation (if required, attach Form 4562) ......................................................... 16a
b Less depreciation reported on Schedule A and elsewhere on return .......................... 116b~
17 Depletion (no not deduat oll and gas depletion.) .............................................................................................
18 Retirement plans, utc ....................................................................................................................................
19 Empioyeebenefit programs ...........................................................................................................................
20 Other deductions (attach schedule) ...................................................... ~.E.~....~.T.J~T.~[~[~.r~...:~ .............
21 Total deductions. Add the amounts shown in the/ar right column for lines 9 through 20 ..........................................
155r000.
101r986.
53,014.
53r014.
9~489.
9,489.
22
Sign
Here
Paid
Preparor's
Use Only
Ordinary Income (lose) from trade or business activities. Subtract line 21 from line 8 i 2 5.
Fi.~'....~iork. WAGGONER¢ FRUTIGER & DAUB
yours If self-
· ~p,w~l. P'5006 E TRINDLE RD SUITE 200
~P code MECHANICSBURG r PA 17050
JWA For Paperwork Reduction Act Notice, see separate instructions.
178-38-3454
EIN ~23-1583249
,, ...... (717)506-1222
Form 1065 (2002)
25-1847417
Page 2
190~477
WORTHINGTON DEVELOPMENT, L.P.
Form 1065 (2002)
~ii~mt~;:-~=:=: :: Cost of Go~s Sold (see page 19 ofthe instructions)
1
I Inventory at beginning of year ............................... ...................................................................... 2
2 Purchases less cost otltems withdrawn for personal use ... ....................................................................................
3 Cost o! labor ................................................................................................................................................ I 4 4
Additional section 263A costs (attach schedule) ................................................................................................
'34 othsr costs (attach schedule) .................................................................... ~ ~ ~'" ~ ~'~ ~ '~'~'~"'~ ....... 166
$
Inventory at and of year ....................................................................................................................................
Total. Add lines 1 through 5 ........................................................................................................................... 7
7
8
8 Cost of gooas sold. Subtract line 7 from line 6. Enter hers and on page 1, line 2 .........................................................
7~010.
197,487.
95~501.
101,986.
0 a Checkallmethodsusedforvaluingclosinginventory:
(I) ~ Cost as described in Regulations section 1.471-3
(11) I'---1 Lower of cost or market as described in Regulations section 1.471'4
(iii) ~-~ Other (specify method used and attach explanation) ·
b Check this box fi there was s wdtedown of "subnormal" goods as descdbed in Regulations section 1.471-2(c) ................................................... ·
c Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) I~ r~
d Do the rules of section 263A (for property produced or acquired for resale)apply to the partnership? ........................ iiiiiiiiiiiiiiiiiiiii'''~'~'~s ~ No
e Was there any change in determining quantities, cost, or valuatlons between opening and closing inventory? .................................... [~ Yes ~ No
If"Yes" attach ex~ anat on.
;~i~i:~[t G~her Information No
What type of entity is filing this return? Check the applicable box:
[~ Domestic general partnership b [~ Domestic limited partnership
~ Oomesticlimited liability company d r-~ Domestictimlted Iiabi[ity partnership
[~] Foreign partnership f I-'--1 Other·
Are any partners in this partnership also partnerships? ........................................................................................................................
During the psrtnership's tax year, did the partnership own any interest in another partnership or in any foreign
entity that was disregarded as an entity separate from its owner under Regulations sections 301.7701-2 and
301.7701-3? If yes, see instructions for required attachment ..................................................................................................................
Is this partnership subject to the consolidated audit procedures of sections 6221 th rough 6233? If 'Yes," see
Designation of Tax Matters Partner below .......................................................................................................................................
Does this partnership meet all three of the following requirements?
The partnership's total receipts for the tax year were less than $250,000;
The partnership's total asseta at the end of the tax year were less than $600,000; and
Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensi°ns) f°r the Partnership
return.
if "Yes,' the partnership is not required to complete Schedules L, M-l, and M-2; Item F on page I of Form 1065;
or Item J on Schedule K-1 ...............................................................................................................................................................
Does this partnership have any foreign partners? If"Yes," the partnership may have to file Forms 8804, 8805
and 8813. See page 20 of the instructions ..................................................................... .....................................................................
Is this partnemhip a publicly traded partnership as defined in section 469(k)(2)? .......................................................................................
Has this partnership filed, or is it required to file, Form 8264, Application for Registration of a Tax Shelter? ...................................................
At any time dudng calendar year 2002, did the partnership have an interest in or a signature or other authority over a financial account in
a foreign country (such as a bank account, secu titles account, or other financial account)?
See page 20 of the instructions for exceptions and filing requirements for Form TD F 90-22.1.
If"Yes," entar the name of the foreign country. ·
Du ring the tax year, did the partnership receive a distribution from, or was it the g rsntor of, or transferor to, a foreign trust?
If 'Yes,' the partnership may have to file Form 3520. See page 20 of the instructions .................................................................................
Was there a distribution ct property or a transfer (e.g., by sale or death) of a partnership interest during the tax year?
If'Yes,' you may elect to adjust the basis of the partnership's assets under section 754 by attaching the statement described
under Elections Made By the Partnership on page 8 of the instructions ...................................................................................................
Enter the number of Forms 8865~ Return of U,S. Persons With Respect to Certain Foreign Partnerships, attached to this return I~
12
Designation of Tax Matters Partner (see page 21 of the instructions)
Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this retu m:
Name of
designatadTMP · MAYBELLE L. CLAYPOOL~ INC.
1300 MT LAUREL CIRCLE
Address of ·
Identifying
numberctTMP · 25--1841672
X
X
X
X
X
X
X
X
X
X
designatedTMP HARRISBURG~ PA 17110
JWA Form 1065 (2002)
14260228 706230 72000 2002.08000 WORTHINGTON DEVELOPMENT, L. 72000__1
L.P 25-1847417
Form 1065 (?02) WORT H .L N~'.L'UN JJ~vm~ur['zm~f ....
........ ~:1 F~a~i~ers' S,~are~ of Income, Credits, Deductions, etc.
(h) Total amount
(a) Distributive share items
Ordinary income (loss) from trade or business activities (page 1, line 22) ...................................................... 4 3 ¢ 5 2 5 ·
2
Net income (lose) from rental mai estate activities (attach Form 8825) ............................................................
Gross income from other rental activities ................................................ 3a ::::::::::::::::::::::::::
3h
Expenses from other rental activities (attach schedule) .... : ......................... 3c
Net income (loss) from other rental activities. Subtract line 3b from 0ne 3a ...................................................
Portfolio income (Ioss): a Interest income SEE STATEMENT 3 4a 2 72.
.......................................................................................... 4h
Ordinary dividends .............................................................................................................................. 4c
Royalty income .................................................................................................................................
4d
Net short-term capital gain (loss) (attach Schedule D (Form 1065)) ...............................................................
e (1) Net long-term capital gain (loss) (attach Schedule D (Form 1065)) ............................................................ 4~(~).
4f
Other portfolio income (loss) (attach schedule) .......................................................................................
5
Guaranteed payments to per,nero .........................................................................................................
Net section 1231 gain (loss) (other than due to casualty or theft) (attach Form 4797) ....................................... 6
7
Other income (Iossl (attach schedulel ..................................................................................................... 8
Charitable contributions (attach schedule) ................................................................................................
9
Section 179 expense deduction (attach Form 4562) ................................................................................. 10
Deductions related to po~olio income (itemize) .......................................................................................
11
Other deductions (attach schedule) .........................................................................................................
a Low-income housing credit: 12a(1)
(1 ) From partnerships to which section 42(j1(5) applies .............................................................................. 12a(2)
(2) Other than on line 12a(1) ..................................................................................................................
h Oualified rehabilitation expenditures related to rental real estate activities (attach ..............................
Form
3468)
1
2h
12c
c Credits (other than credits shown on lines 12a and 12b) related to rental real estate activities ..............................
12d
d Credits related to other rental activities ......................................................................................................
lg
Other crsdits .......................................................................................................................................
14e
a interest expense on investment debts ......................................................................................................
b (1) investment income included on lines 4a, 4b, 4c, and 4! above ............................................................... 14h(1
(2) investment expenses included on line 10 above ................................................................................. 14b(2)
15e O.
a Net earnings (loss) from serf-employment ................................................................................................
15b
15c
~ ~ , 16 a Depraciation adjustment on property placed in sewice after 1986 .................................................................. 16a
16b
b Adjusted gain or loss ........................................................................................................................... 16c
c Depletion (other than oiiand gas) .........................................................................................................
16d(1)
d (1) Gross income from oil, gas, and geothermal properties .......................................................................
(2) Deductions allocable to oil, gas, and geothermal properties .................................................................. 16d(2)
e Other adiuctments and tax preference Items (attach schedule) ..................................................................... 16e
17 a Name of foreign country or U.S. possession ·
17h
17s
C Gross income sourced ut partner level ......................................................................................................
d
Foreign
gross
e Deductions aliocatad and apportioned at partner level:
(1) Interest expense · (2) Other ......................................................... · 17e(2)
! Deductions allocated and apportioned et partnership level to foreign source income:
g Tctaiforeigntaxes(checkone): · Paid E~ Accrued~ ............................................................... 17q
h Reduction in taxes available for credit (attach schedule) .............................................................................. 17h
18 Section 59(e)(2) expenditures: a Type ~' b Amount · 18b
19
20
21
21 Nondeductible expenses ........................................................................................................................
22 Distributions of money (cash and marketable secuHties) .............................................................................. 22 6 6 t O O 0
23
Ea Distributions of property cther than money ...............................................................................................
Form 1065 (2002)
JWA
211021
14260228 706230 72000 2002.08000 WORTHINGTON DEVELOPMENT, L. 72000__1
~ WORTHINGTON DEVELOPMENTz_L · P · 2 5-18 4 7 417 ~
Anal sis of Net Income Loss ~
1 Net Income. (loSS). ComtUne~l$~ledule K Ii,, 1 thrOU h 7 in column Io. From the n~ul subtract the sum of Soh K limes 8 throu h 11 14al 4. 1717 ~nu(~xem,pt~nu ~ e~ m t (vi) Nominee/0ther4 3 L 7 9 7
= Ana s,sby I ers"'P I 0 an,.t,on
partner type:
b Limited partners
Note: Schedules L, M-1 and M-2 are no{ required ff ~estion 5 of Schedule B is snswered 'Yes.'
~.,;:=-_~.. ~:t Balance Sheets per I~OOKS
Beginning of tax year End of tax year
Assets , !a) ........ (b) .................. ~ ................... T (d)
I Cash !i~i il ii:~?~i:~ii!ii?:i?~i?:~iiiii!~iiii ii! 9,3 8 5. iiiiiii~?:ii?: i:: :::::::::::::::::::::::::::::: . 4 7,6 6 2.
2a Trade notes and accounts receivable ......... :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
b Less allowance for bad debts .................. .................................................................................. 19 0 ~ 4 7 7~i:i~i:i:~:i:i:~!l:i:~:~ ............................ i:i:i:~:i:~:i:i:!: 9 5 ~ 5 0 1.
§ Other current assets (attach schedule) ~~ii~!iiiii 76~. 76~.
...... ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
? Me,gage and real es~ts loans ...............
b Less accumulated depreciation ...............
11 Land (net of any amo~ization) ............... ~ :~:=~:. ~
12a Intangible asse~ (amo~ble only) 8 r 075 8
......... 2r691 6r729. [~346.
b Less a~umulatad amo~ization ............... 5 r 384, ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
14 Total assets ....................................... 2 3 ~ 321 · ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ..... ~ ~ 5 r 2 ? ? ·
....... ~:~ ......................................... AO~63A.
17 ~her current IiabilEies (a~ach schedule) ... 374 ·
El PeAhen' cap,al accounts ..................... 43~571 21r368.
22 Torsi liabilAies and cep~al 203 ~ 321 145 ~ 277 ·
' Books With Income (Loss) p;
I Netincome(Ioss)perbooks 43~797. 6 ncomerecordedonbooksthisyearnot
........................ included on Schedu e K, lines 1 through
2 Income included on Schedule K, lines I through 7 (itemize):
4, 6, and 7, not recorded on boons this year a Tax-exempt interest $
(itemize):
3 Guaranteed payments (other than health 7 Deductions included on Schedule K, lines 1
insurance) ................................................... through 11,14a. 17g, and 18b, not charged
4 Expenses recorded on books this year not against book Income this year (itemize):
included on Schedule K, lines 1 through a Depreciation $
11, 14a, 17g, and 18b (itemize):
a Depreciation $
8 Add lines 6 and 7 .......................................
b Traveland entertainment $
g income (loss) (Analysis of Net Income (Loss),
5 Add lines 1 through 4 .................................... 43~797. line 1). Subtract line 8 from line 5 .................. 43;797.
through
~-:~'~ .~ Analysis OT I,'u[b~urs ~.,aplLu! ~.~u~uu,,~=
I Balance at beginning of year ........................... ~ 3 ~ 5 7 [. 6 Distributions: a Cash ................................. ~ ~ ~ 0 0 0 ·
2 Capital contributad during year a Cash ............ b Prope~ ...........................
7 ~her decreases (itemize):
b Prope~ ......
3 Net income (1ess) per boons ........................... ~ 3 r 797
4 ~h~r increases (itami~e):
000
8 Add lines 6 and 7 ...................................... ~r
5 Addlineslthrou~h4 87r368 g Balan~atendofy--r. Subtm~lineS~mllne5 21r368.
12-16-02 JWA
14260228 706230 72000 2002.08000 WORT~I~C-TON DEV~T,O?M~,NT, T,. 72000
OMB No. 1545-(~172
4562 I Depreciation and Amortization 2002
(Including Information on Listed Property) OTHER 1
~te~am~t~°~f~T.w~s~~/ ~ See separate instructions. ~ Attach to your tax return. ~uuh~me~n~o, 67
WORTHINGTON DEVELOPMENTr L.P.
~ ~ii~i~ E action To Expense Certain Tangible PropeW Under Section 176 Note: If you have any listed propeff~, complete Part V befor~ , Part I.
1 Maximum amount. See instructions for a higher limit for certain businesses ......................................................
2 Total cost of section f 79 property placed in service (see instructions) ............................................................... $200,000
3 Threshold cost of section 17g property before reduction in limitation ..................................................................
4 Reduction in limitation. Subtract line 3 from line 2. if zero or less, enter "0.. ........................................................
7 Listed property. Enter amount from line 2g .................................................................. I 7
8 Total elected cost of section t 7g property. Add amounts in column (c), lines 6 and 7 ..........................................
9 Tentative deduction. Enter the smaller of line 5 or line 8 ...................................................................................
10 CarTyover of disallowed deduction fromlina 13 ofyour2001 Form45§2 ............................................................
11 Business incema limitation. Enter the smaller of business Income (net less than zero) or line 5 ...........................
12 Section 17g axpense deduction. Add linee g and f 0, but do not enter more than line 1 t .........................
1;3 Carryover of disallowed deduction to 2003. Add lines g and 10, less line 12 ............ ~ I 13 1
Note: Do not use part II or Part III below for listed property. Instead, use Part V.
25-1847417
24r000.
l::~i~::t S,.,4,1Deprec at on A owanee and Other Del, r~c;ation (Do not include listed property.)
15 Property subject to section 168¢)(1) election (see instructions) ........................................................................... 1615
16 Other depreciation {includinf:l ACRS) (see instructions) .......................................................................................
Ii~ii~J~ MACRS Depreciation {Do not include listed property.) (See instructions.)
Section A
17 MACRS deductions for assets placed in service in tax years beginning before 2002 ..........................................
18 If you are electing under section 168(~(4)to group any assets placed in service dudng the tax iiii::.::::i?i:!?i~:iiiiii!:! iiii::ii!i:~!::i~iiii i!ii:iii!ili::iiii!iiii:il ii!i!
year into one or more general asset accounts, check here .................................................................. · E~]
the General
Section u- ~sse~s t-mceo ,n =er~.;. ...... ~ ................ . .............. ~ ~
I
3-year property~ ~
5-y~ pro~y :::s::::::::::::::::::::::::::::::::::::::::: ::::::::
7-year prope~y
10-ye~ pm~y ::::::::::::::::::::::::::::::::::::::::::::::::::::::::
15-year pm~y
20-ye~ pro~y
25-year prope~y 25 yin. S/L
/ 27.5 yin. MM S/L
Residential mnt~ pro~ / 27.5 yrs, MM S/L
/ 3g yin. MM S/L
Nonresidential real prope~y / MM S/L
Section C - A==-*- Placed in ~ervice During 2002 Tax Year Using the Alternative Depreciation System
20a Class life i::iii::ii:.[ii::[ii:::[i[::iiiiiiiiii[:ii::i:: ::i::?=i::ii S/L
c 4o-¥eer / J I I 4o¥~. I ~M I S/L I
tii~i::~ Summary (See instructions.)
2221 Total.Enter Listedhere Add propertY,and amounts onEnter amount from the from appropriateline 12, lineSlinesl[ne 2814 of through your ...................................................................................................... return.17' lines Partnemhips 19 and 20 andin sC°lumn corporations (g)' and. line sas 21.instr ......................
2:1For assets shown a~ovo and pieced in service during the cun'ect Yeer, enter the
portion of the basis attributable to section 205A costs ...............................................
e~s~ Form 4~02 (2002~
~0-~-0~ LHA For Capen~ork ~eduction ACt Notice, see separate inetructions.
5
1~260225 706230 72000 2002.08000 WORTHINGTON DEVE'r,OPMENT~ B. 72000~1
Form4562(2002) WORTHINGTON DEVELOPMENTr L.P. 25-1847417 Page~
Ii~ii:iil Listed Property (Incrude automobiles, certain other vehiclas, callular telephones, certain computem, and property used for antertainment,
recreation, or amusement.)
Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a~ 24b, columns (a)
throuqh (c) of Section Ar all of Section B, and Section C if applicable.
Section A - Depreciation and Other Information (Caution: Sea instructions for limits for passenger automobiles.)
24a D0y0uhaveevidencet0supp0rtthebusinessAnvestmentussclaimod? [~]Yes I-'--]No 24blf'Yes,'istheevidencewriftan? r---]Yes[~No
T po0fpr0 e Uuslness/ B~lsfordepreclaflon R ' ' Elected
.y p rt¥ I nlacedin I invo~mo-~ J C0st0r
[ service [ usepercen[ageI ........ I useonly) Ir' I ................... cost
25 Specia, depreciation -I,owance for qualified listed property praced in service dudng the tax
year and used more than 50% in a qualified business use ........................................................................
26 Property used more than 50% in a qualified business use:
27 Property used 50% or leas In a qualified business use:
n cou ....................................
28 Add amounts ' mn (h), linas 25 through 27. Enter here and on llne 21 page1
29 Add amounts in column (i}, line 26. Enter here and on line 7, page 1 ................................................................................. I 29 I
Section B - Information on Use of Vehicles
Complete this section for vehicles used by a sole proprietor, partner, or other "more than 5% owner," or related peach.
If you provided vehicles to your employees, flat answer the questions in Section C to sea if you meet an exception to completing this section for
those vehicles.
(a) (re) (c) (d) (e) (t)
30 Total businessAnvestment miles ddven during the Vehicle Vehicle Vehicle Vehicle Vehicle Vehicle
year (do not include commuting miles) ..................
31 Total commuting miles driven during the year ...
32 Total other personal (noncommuting) miles
ddven ...............................................................
33 Total miles driven during the year.
Add lines 30 through 32 ....................................
~4 Was the vehicle available for pemonai use Yes No Yes No Yes Nc Yes No Yes No Yes No
during off-duty hours? ....................................
35 Was the vehic[e used primarily by a more
than 5% owner or related peach? ..................
~ Is another vehicle available for pemonal
use? ...............................................................
Section C - Questions for Employers Who Provide Vehicles for Use by Their Employees
Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than
owners or related persons.
37 Do you maintain a wdtten policy statement that prohibits all personal use of vehicles, including commuting, by your
employees?
38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your
employees? See instructions for vehicles used by corporate officem, directors, or 1% or more ownem ..........................................
39 Do you treat air use of vehicles by employees as personal use?
40 Do you provide more than five vehicles to your empJoyees, obtain information from your employees about
the use of the vehicles, and retain the information received?
41 Do you meet the requiraments concerning qualified automobile demonstration use?
Note: If your answer to 37, 35, 39, 40, or 41 is Y~ s, do not complete Section B for the covered vehicles.
No
(a) I (b) I (c) (d) (e) (t)
42 Amortization of costs that begins durin~ your 2002 tax },ear:
4J TA~;i~. i~dt ido;mO,o uC~;;~ ?otlu~gn~ b;fe~r~ sy~.~0n ~ ;~r wy~;;e t o re po r t
218252/10-25-02
260228 706230 72000
Form 4562 (2002)
6
2002.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
)RM 1065 OTHER DEDUCTIONS STATEMENT 1
~SCRIPTION AMOUNT
2COUNTING 3,200.
~GAL 2,868.
~OUND MAINTENANCE 675.
~AL ESTATE TAXES 1,791.
~SURANCE 95.
~NK CHARGES 860.
)TAL TO FORM 1065,
LINE 20 9,489.
~HEDULE A OTHER COSTS STATEMENT 2
~SCRIPTION AMOUNT
ETTLEMENT COSTS 2,362.
~TEREST 3,823.
)MMISSIONS 300.
~GINEERING 525.
)TAL TO FORM 1065, PAGE 2, LINE 5 7,010.
2HEDULE K INTEREST INCOME STATEMENT 3
~SCRIPTION U.S. BONDS OTHER
DTAL TO SCHEDULE K, LINE 4A
272.
272.
2HEDULE L OTHER CURRENT ASSETS STATEMENT 4
~SCRIPTION
JE FROM MAYBELLE L. CLAYPOOL,
DTAL TO SCHEDULE L, LINE 6
INC.
BEGINNING OF
TAX YEAR
END OF TAX
YEAR
768. 768.
768. 768.
7 STATEMENT(S) 1, 2, 3, 4
~260228 706230 72000 2002.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
~HEDULE L OTHER CURRENT LIABILITIES STATEMENT 5
ESCRIPTION
2CRUED INTEREST
DTAL TO SCHEDULE L,
LINE 17
BEGINNING OF
TAX YEAR
END OF TAX
YEAR
374. 662.
374. 662.
DRM 1065 PARTNERS' CAPITAL ACCOUNT SUMMARY STATEMENT 6
kRTNER BEGINNING CAPITAL SCHEDULE M-2 WITH- ENDING
~MBER CAPITAL CONTRIBUTED LNS 3, 4 & 7 DRAWALS CAPITAL
1 1,378. 438. 1,816.
2 21,097. 21,679. 33,000. 9,776.
3 21,096. 21,680. 33,000. 9,776.
DTAL 43,571. 43,797. 66,000. 21,368.
8 STATEMENT(S) 5, 6
~260228 706230 72000 2002.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
1
SCHEDULE K-1
(Form 1065)
Department of the Treasury O -ugiun
Partner's Identifying number ·
Partner's name, address, and ZiP code
Partner's Share of Income, Credits, Deductions, etc.
For calendar yuar 2002 Or tax year
, , and ending ,
2 5 - 18 4 16 7 2 Partnersh[p's Identifying number ·
Partnemhip's name, address, and ZIP code
MAYBELLE L. CLAYPOOL, INC.
1300 MT LAUREL CIRCLE
HARRISBURG~ PA 17110
A This partner is a ~ guneralpartner E~ limited partnur
r--] limited liability company member
B Whattypeofuntityisthispartner? · S CORPORATION
C Isthispartnera r-~domesticora ~"-l foreign partner?
pamentage of:
Profit sharing % i. 0000000%
Loss sharing ......... % i .0000000%
Ownership of capital % 1 . 0 0 0 0 0 0 0 %
E IRSCsnterwnerepartnershlpn,ednei3Jm: CINCINNATI¢ OH
.t0MB2002 .o. 1545.0099
25-1847417
qORTHINGTON DEVELOPMENT, L.P.
[300 MT LAUREL CIRCLE
ZARRISBURG¢ PA 17110
Partner's share of liabilities:
Nonrecourse .................................... $
Qualified nonrecourse financing ............ $
Other ............................................. $
123r909.
G Tax shelter registration number ·
H Check here if this partnemhip Is a publicly traded partnership
as defined in section 469(k)(2) ................................................
I Check applicable boxes: (1) ~ Final K-1 (2) ~ Amended K-1
J rial account:
(c) Partner's share of lines (e) Capital account at end
(a) Capital account at (b) Capital contributed 3, 4, and 7, Form 1065, (d) Withdrawals and of year (combine
beginning of year during year Schedule M-2 distributions columns (a) through (d))
lr378. 438. 1¢816.
c) 1040 filers enterthe
(a) Distributive share item (b) Amount amount in co umn (b) on:
I Ordinary income (loss) from trade or business activities ....................................... 4 3 5 ~ See page U of Parker's InstmcUon
2 Net income (loss) from rental real estate activities ................................................J for Schedule K-1 (Farm 1065)
3 Net income (loss) from other rental activities ......................................................
4 Portfolio income (loss): a Interest .................................................................. 3 Scb, B, Part I, line 1
b Ordinary dividends ....................................................................................... Sch. B, Part Il,line 5
c Royalties ................................................................................................... Sch. E, Part I, line 4
d Net short-term capital gain (loss) ..................................................................... Sch. D, line 5, col. (f)
e (1) Net Iong-tarm capital gain (loss) .................................................................. 6ch. D, line 12, col, (f)
(2) 28% rate gain (loss) Sch. D, line 12, col. (g)
(3) Qualified 5-year gain ................................................................................. Uno 5 of worksheet for Sch. n, line 29
f Other portfolio income (loss) (attach schedule) ................................................ Enter on applicable lines of your return
5 Guaranteed payments to partner .................................................................... } for~eesched ulePage 6 of Parfoer's InstrucUOrK_l (Form 1065)
0 Net sec. 1231 gain (loss) (other than casualty or theft) ..........................................
7 Other income (loss) (attach schedule) ............................................................... En fer on applicable line of your ~turn
8 Charitable contributions (attach schedule) ......................................................... Sch. A, line 15 or 16
0 Section 179 expense deduction .....................................................................
10 Deductions relatad tn portfolio income (attach schedule) .................................... Inst~*uctions for Schedule
11 Other deductions (attach schedule) .................................................................. ~:o~ lO65)
13 Other crsdits ............................................................................................. (Ente~ on applicable linee of your tatum)
14 U Interest expense on investment debts ............................................................... Form 4952,1inel
b(1)lnvestment income included on lines 4a, 4b, 4c, and 4f above .............................. 3- } See page 9 °f Partner's Insb'ucti~r
(2)investment expenses included on line 10 above ................................................... for Uched.le K-1 (Form 1065)
15 U Net earnings (loss) from self-employment ......................................................... Sch. SE, Section A or B
b Gross farming or fishing income ..................................................................... [ See page 9 of Parther's lnstmcUol
C Gross nonfarm income .................................................................................~' for Schedule K-1 (~orm 1065)
16a Depreciafion adjustment on propertyp[aced in serviceafier1986 ........................... ~ SeePar~ner'slnstmcflonsfor
b Adjusted gain or Joss .....................................................................................~ S=heduls K+I (Form 1~165) and
e Other adiustments and tax preference items (attach schedule) .............................. InstrucUons for Form 6251
19 Tax-exempt interest income ........................................................................... Form 1040, line 8b
20 Other tax'exempt income ..............................................................................
22 Distdbufions of money (cash and marketable securities) ....................................... (no~ lO65)
23 Oistdbufions of property other than money ........................................................
JWA For Paperworl~ Reductloe Act Notice, see Form 1065 Instructions.
211161
4260228 706230 72000 2002.08000
No Information Required for Page 2 Schedule K-1 (Form 1065) 2002
WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
~HEDULE K-1 COLUMN C RECONCILIATION
ESCRIPTION
~DINARY INCOME (LOSS)
~TEREST INCOME
)TAL TO SCHEDULE K-l,
ITEM J, COLUMN C
AMOUNT
435 ·
3.
438 ·
10 Partner Number 1
4260228 706230 72000 2002.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
2
SCHEDULE K-1
(Form 1065)
Partners Identifying number ·
Partner's name, address, and ZiP code
190-16-2687
Partner's Share of Income, Credits, Deductions, etc. OMB No. 1545-0099
For calendar year 2002 or tmcyear 2002
, , and ending
Partnerablp's Identllylng nu mbe r ~'' 25-i847417
Partnership's name, address, and ZiP code
HARRY S. CLAYPOOL
1300 MT LAUREL CIRCLE
HARRISBURG, PA 17110
A This partneris a E~ generalpartner E~ limited partner
E~ limited liability company member
B Whattypeofentityisthispartner? · INDIVIDUAL
C Isthispartnera ~-] domesticora [---I foreign partner?
pementage of:
Proffi shadng
Loss sharing
Ownership of capital % 49.5000000%
E IRs Centerwha~ne par~.ership filed return: C INC INNAT I, OH
J Anal ,fial account:
% 49.5000000%
% 49.5000000%
~TORTHINGTON DEVELOPMENT,
1300 MT LAUREL CIRCLE
.~ARRI SBURGr PA 17110
F Partner's share of liabilities:
Nonrecourse .................................... $
Qualified nonrecourse financing ............ $
Other ............................................. $
G Taxshelter registretion number ·
H Check here if this partnership Is a publicly treded partnership
as defined in section 469(k)(2) ................................................
I Check applicable boxes: (1) r-~ Final K-1 (2) [~ Amended K-1
(c) Partner's share of lines (e) Capital account at end
(a) Capital account at (b) Capital contributed 3, 4, and 7, Form 1065, (d) Withdrawals and of year (combine
beginning of year during year Schedule M-2 distributions columns (a) through
33f000. 9r776.
21r097' 21r679'
(c) 1040 filers enter the
(a) Distributive share item (b) Amount amount in column (b) on:
I Ordinary income (loss) from trade or business activities ....................................... 2 1 r 5 4 5. ! '[ see page s or ~,.~,~.
2 Net income (loss) from rental real estate activities ................................................J for schedule K-1 (For~ 1
3 Net income (loss) from other rental activities ......................................................
4 Portfolio income (loss): u Interest .................................................................. 1 3 4 · Sch. B, Part I, line 1
b Ordinary dividends ....................................................................................... Sch. B, Part Ii, line 5
c Royalties ................................................................................................... Sch. E, Part I, line 4
d Net short-term capltal gain (loss) ..................................................................... Sch. D, line 5, col (f)
oE e (1) Net long-term capital gain (loss) .................................................................. Sch. D, line 12, COL (f)
~ (2) 28% rate gain (loss) ................................................................................. Sch. D, line 12, col.
(3) Qualified 5-year gain ................................................................................. Une 5 of worksheet for Sch. D, line 29
f Other portfolio income (loss) (attach schedule) ................................................ Enter on appliCable I[nee of your return
5 Guaranteed payments to partner ..................................................................... s~e page 6 of Partner's Instmceor
6 Not sec. 1231 gain (loss) (other than casualty or theft) .......................................... ) for s=~edu~. K-1 (Form 1065)
7 Other income (loss) (attach schedule) ............................................................... Enter on applicable fine or your tatum
8 Charitable contdbufions (attach schedule) ......................................................... Sch. A, line 15 or 16
'- 10 Deductions related to portfolio income (a~ch schedule) .................................... InstrucUons forSchedule K-I
11 Other deductions (attach schedule) ..................................................................
'~ 13 Other credits ............................................................................................. (Enter on applicable Ill,ce of your tatum)
E~ 14 a Interest expense on investment debts ............................................................... Form 4952,1incl
_e~ b (1)investment income included on lines 4a, 4b, 4c, and 4f above 1 3 4 . See page 9 of Partner's Instructior
-- ~ (2)Investment expenses included on line 10 above ................................................... for s=h,,~u~e K-1 (Form 1065)
,_~_~.~ ! l fie Net earnings (loss)from self-employment ......................................................... 0· S. ch. SE. Section A or B
b Gross farming or fishing income .....................................................................} see pege 9 of Partner's InstmctJor
C Gross nonfarm income ................................................................................. forScheC~Ule K-1 (For~11065)
, 16 a Depreciafion adjustment on prop8~ placed in service after 1986 ...........................
',~. b Adjusted gain or loss See Par~ner's Instructions for
U Other adjustments and tax preference items (attach schedule) .............................. ~ns~c~ons for Form 6251
l fi Tax-exempt interest income .......................................................................... ~Form 1040, line ifb
~ 20 Other tax-exempt income ..............................................................................
21
Nondeductible
22 Distributions of money (cash and marketable securities) ....................................... 3 3 t' 0 0 0 · (Form 1065)
23 Distributions of property other than money .........................................................
JWA For Paperwork Reduction Act Notice, sea Form 1065 Instructions. No Information Required for Page 2 Schedule K-1 (Form 1065) 2002
211161
02-1S-03 2
4260228 706230 72000 2002.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
2HEDULE K-1 COLUMN C RECONCILIATION
ESCRIPTION
AMOUNT
RDINARY INCOME (LOSS)
NTEREST INCOME
21,545.
134.
21,679.
DTAL TO SCHEDULE K-i, ITEM J, COLUMN C
12 Partner Number 2
4260228 706230 72000 2002.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
3
SCHEDULE K-1
(Form 1065)
Partner's identifying number ·
Partner's name, address, and ZIP code
182-14-6282
Partner's Share of Income, Credits, Deductions, etc.
For calendar year 2002 or tax year
, and endinfl
Partnershlp's Identifying number ·
Partnership's name, address, and ZIP code
Ful%YBELLE CLAYPOOL
1300 MT LAUREL CIRCLE
HARRISBURG, PA 17110
A This partneris a ~ generarpartner ~ limited partner
~ itmited liability company member
B Whattypeofentityisthispartner? · TNDT¥IDUkL
C ~sth[s partnera ~ domesticora E~ foreign partner?
percentage of:
Profit shadng % 49 · 5000000°/,
Loss sharing % 49.5000000,
E I
J
Ownership of capital % 49 · 5000000'
IRSCenterwhempermershlpffiedm~drn: CINCINNATIr OH
)Itel account:
OMB No. 1545-0099
2002
25-1847417
WORTHINGTON DEVELOPMENT, L.P.
1300 MT LAUREL CIRCLE
HARRISBURGr PA 17110
Partner's share of liabilities:
Nonrecourse .................................... $
Qualified nonrecourse financing ............ $
Other ............................................. $
G Tax shelter registration number ·
H Check here if titis partnership is a publicly traded partnership
as defined in section 469(k){2) ................................................
Check applicable boxes: (1) ~ Final K-1 {2) r--] Amended K-1
(c) Partner's share of lines (e) Capital account at end
(a) Capital account at (b) Capital contributed 3, 4, and 7, Form 1065, (d) Withd rewals and of year (combine
beginning of year during year Schedule M-2 distributions columns (a)through (d))
21ir096. 2ir 680. 33r000. 9ir776
(c) 1040 filers enter the
(a) Distributive share item (b) Amount amount in column (h) on:
1 Ordinary income (loss) from trede or business activities ....................................... 21,545. ~[ See page S of Partner's Instruction:
2 Net income (loss) from rental real estate activities ................................................~ for Sohedule K-1 (Form 1065)
3 Net income (loss) from other rental activities ......................................................
4 Portfolio income (loss): a Interest .................................................................. 1 3 5 Sch. 6, Part I, line 1
b Ordinary dividends ....................................................................................... Sch. B, Part Il, line 5
~ c Royalties .................................................................................................. Sch. E, Part I, line 4
~ d Net short-term capital gain (loss) Sch. D, line 5, col. (f)
~ e (1) Net long-term capital gain (loss) .................................................................. Sch. D, line 12, col (f)
_c (2) 28% rate gain (loss) ................................................................................ Sch. D, line 12, col. (g)
(3) Qualified 5-year gain ................................................................................. Une 5 of worksheet for Sch, e, line 29
f Other portfolio income (loss) (attach schedule) ................................................ Enter on applicable &lnes of your tatum
5 Guaranteed payments to partner .................................................................... ) for See Schedule page 6 of K-1 PS,thor's (Form 1065) In$~nJCfiOn
6 Net sec. 1231 gain (loss) (other than casualty or theft) ..........................................
7 Other income (loss) (attach schedule) ............................................................... Enter off appl)cable line of your return
8 Charitable contributions (attach schedule) ......................................................... Sch. A, line 15 or 16
1~_~ g Section 179 expense deduction .....................................................................
¢3 <" ; 10 Beductions related to portfolio income (attach schedule) .................................... tnstmcSon$ for Schedme K-1
I 11 Other deductions (attach schedule) .............................................................. (Fon~ 1065~
~ 13 Other credits ............................................................................................. (Enter on applicable lines of your retum)
EU,g. 14 a Interest expense on investment debts ............................................................... Form 4952, line1
b (1)Investment income included on lines 4a, 4b, 4c, and 4f above .............................. 'l 3 5 See page e of Partner's Instruction
_ e (2)Investment expenses included on line 10 above ...................................................
..__'~ 15a Neteamings(loss)fromselt-empioyment ......................................................... O., $ch. SE, SecfionAorB
b Gross farming or fishing income ..................................................................... 'L see page 9 or Partner's InstnJceon
0 c Gross nonfamq income ...............................................................................~r forSchedu~eK-1 (Form 1055}
l~! 18s Depreciation adjustment on proper~ placed in service after 1986 ........................... '1 see p=rt~er's ,nstruct,ons f~r
b Adjusted gain or loss ....................................................................................1 Schedule K-1 (Fon'n 1055) and
;~ "'= e Other adiustments and tax preference items (attach schedule) .............................. Instructions for Form 6251
19 Tax-exempt interest income ........................................................................... Form 1040, gne 8b
~ 20 Other tax-exempt income .............................................................................. [ see pag~ 9 and 10 of Partner's
22 Distributions of money (cash and marketable secu rifles) ....................................... 3 3 ir 0 0 0 ·.~ (Form 10GS)
23 Distributions of property other than money
JWA For Paperwork Reduction Act Notice. see Form 1065 Instructions.
No Information Required for Page 2 Schedule K-1 (Form 1065) 2002
4260228 706230 72000 2002.08000 WORTHINGTON DEVELOPMENT, L. 72000__1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
~HEDULE K-1 COLUMN C RECONCILIATION
~SCRIPTION
~DINARY INCOME (LOSS)
~TEREST INCOME
)TAL TO SCHEDULE K-l,
ITEM J, COLUMN C
AMOUNT
21,545.
135.
21,680.
14 Partner Number 3
4260228 706230 72000 2002.08000 WORTHINGTON DEVELOPMENT, L. 72000 1
65 u.s. Return of Partnership Income I o eNo. e4 c0
EXTE IO. G TED TO 07/15 ' 2003
DEVELOPMENT
DEVELOPMENTr L.P.
1300 MT LAUREL CIRCLE
REAL ESTATE City or town, stats, ancl ZIp code
237210 PA 17110
G Check applicable boxes: (1) Initial retum (2) (9) ge (4)
H Check accounting method: (1) E~ Cash (2) r-'] Accrual (3) E~ Other (spec[fy)
I Number of Schedules K-I. Attach one for each pemon who was a partner at any time dudng the tax year
25-1847417
/1999
465 130.
ga (5) E~ Amended return
3
Caution: Include only trade or business income and expenses on lines la through 22 below. See the instructions for more information.
I a Gross receipts or sales .................................................................................... la 52 r 500 ·
b Less returns and allowances ........................................................................... lb lc 52r500.
2 Cost of goods sold (Schedule A, line 8) ............................................................................................................ 2 3 8 r 7 2 3.
E 3 Gross profd. Subtract line 2 from line lc 3 1 3 r 7 7 7.
8 4 Ordinary income (loss) from other partnerahips, estates, and trusts (attach schedule) ................................................ 4
=
5 Net farm profit (loss) (attach Schedule F(Form 1040)) ....................................................................................... $
S Net gain (loss) from Form 4797, Part I1, line 18 ................................................................................................... 6
7 Otherincome (Ioss)(attach schedule) ............................................................................................................ 7
8 Total Income (loss). Combine lines 3 through 7 ................................................................................................ 8 1 3 r 7 7 7.
S Salaries and wages (other than to partnem) (less employment credits) .................................................................. 9
~ 10 Guaranteed payments to partners .................................................................................................................. 10
'~ 11 Repairs and maintenance 11
12 Bad debts 12
~' 13 Rent 13
~ 14 Taxes and licenses 14
~ 15 Interest
.~ 16 a Depreciation (it required, attach Form 4562) 16a
~ b Less depreciation reported on Schedule A and elsewhere on return ........................... 16b 16c
17 Depletion (Donotdnductollandgasdepletlon.) ............................................................................................. 17
18 Retirement plans, otc ..................................................................................................................................... 18
~ 19 Employee benefit programs ........................................................................................................................... i19
~ 20 otherdeductions(attachschedule) .................. SEE STATEME~__~ ............. 20 11r445.
21 Total deductions. Add the amounts shown in the far dllht column for lines 9 through 20 ......................................... 21 1 1 r 4 4 5
22 Ordinary Income (loss) from trade or business activities. Subtract line 21 from line 8 ............................................... 22 2 r 3 3 2.
Sign
Here ~, ~, May the IR~ discuss t~J$ tutu m
,."-~,,~ ~ ~ 178- 38 - 3454
Preparer's you.,m"~"""~°°~kWAGGr~'~'~,,,~- -- ~"~"r FRUTIGER & DAUB E,N ~23--1583249
Uae0n~ .~d,~.,"m~o~'"~)'~,~ R'5006 E TRINDLE RD SUITE 200 n, ...... (717)506-1222
..... ~".__~.~ MECHANICSBURGr PA 17050
12-18-03 JWA ForPaperworkReductionActNotice, see separate lnstructlons.
Form 1065 (2003)
WORTHINGTON DEVELOPMENT, L.P.
Fox 1065 (2003
Jiiiiii~ii~iit Cost of Goods Sold {see page 18 ortho instructions)
25-1847417
Page 2
I Inventory at beginning of year
2 Pumhases less cost of items withdrawn for persona] use .......................................................................................
3 Cost of labor
4 Additional section 263A costs (attach schedule)
5 Other costs (attach schedu~) SEE [~EMENT 2
6 Total. Add lines 1 through 5
7 Inventory at end of year ....................................................................................................................................
8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 .........................................................
g a Checkallmethodsusedforvaluingclosinginventory:
(I) ~'~ Cost as described in Regulations section 1.471-3
(il) r---1 Lower of cost or market as described in Regulafions section 1.471.4
(iii) ~ Other(specifymethodusedandattachexplanation)·
95r501.
360r767.
6r889.
463,157.
424r434.
38r723.
b Check this box ff there was a writedown of"subnormal' goods as described in Regulations section 1.471-2(c) ................................................... · r~l
c CheckthisboxiftheLIFOinventorymethodwasadoptedthistsxyearforanygoods (ifchecked, attachForm970) .................................... ·~-~
d Do the lies of section 263A (for property produced or acquired for resale) applyto the partnership? .............................................r--1 Yes ~ No
e was there any change in determining quantities, cost, or valuations between opening and closing inventory? .................................... r--1 Yes ~] No
If"Yes · attach explanation.
!iiii~i~il Other Information
12
Designation of Tax Matters Partner (see page 20 ortho instructions)
Enter below the general partner designated as the tax matters partner (TMP} for the tax year of this return:
Name of
designated TMP · [~¥BET,T,E T, o C]-,AYPOOT.~. INC.
I What type of entity is filing this return? Check the applicable box:
a r--1 Domestic general partnership b ~ Domestic limited partnership
s [~] Oomestic limited liability company d ~'---1Domestic limited liabil~ partnership
e r--1 Foreign partnership f r~ Other ·
2 Are any partners in this partnership also partnerships?
3 During the partnership's tax year, did the partnership own any interest in another partnership or in any foreign
entity that was disregarded as an entity separate from its owner under Regulations sections 301.7701-2 and
301.7701-3? If yes, see instructions for required attachment ..................................................................................................................
4 Is this partnership subject to the consolidated audit procedures of sections 6221 through 6233? If"Yes," see
Designation of Tax Matters Partner below
6 Does this partnership meet allthree of the following requirements?
a The partnership's total receipts for the tax year were less than $250,000;
b The partnemhip's total assets at the end of the tax year were less than $600,000; end
s Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership
return.
If "Yes," the partnemhip is not required to complete Schedules L, M-l, and M-2; Item F on page 1 of Form 1065;
or Item J on Schedule K-1
6 Does this partnership have any foreign partners? If"Yes," the partnership may have to file Forms 8804, 8805
and 8813. See page 20 ctthe instructions
7 is this partnership a publicly traded partnership as defined in section 469(k)(2)? .......................................................................................
8 Has this partnership filed, or is it required to file, Form 8264, Applicafion for Registration of a Tax Shelter?
g At any time during calendar year 2003, did the partnership have an interest in or a signature or other authority over a financial account in
a foreign country (such as a bank account, secudt es account, or other financial account)?
See page 20 of the instructions for exceptions and filing requirements for Form TD F 90-22.1.
If"Yes,'enter the name of the foreign country. ·
10 Duringthetaxyear, didthepartnershp receveadistributionfrom, orwasittheg antorof, ortrsnstsrorto, aforsign trust?
If "Yes,' the partnership may have to file Form 3520. See page 20 of the instructions
11 Was hereadstrbut~n~fpr~perty~ratrensfer(e.g'bysa~e~rdeath)~fapartnershpintersstdufingthetaxyear~.
If "Yes, you may elect to ad ust the basis of the partnership s assets under sechon 754 by attach ng the statement described
under Elections Made By the Partnership on page 9 of the instructions ...................................................................................................
Entar the number of Forms 8868~ Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return ·
identifying
numberofTMP · 25-1841672
No
X
X
X
X
X
X
X
X
X
X
Address of
1300 MT LAUREL CIRCLE
·
HARRISBURG~ PA 17110
designated TMP
JWA
570722 706230 72000
FormiC5(2003)
2
2003.05050 WORTHINGTON DEVELOPMENT, L. 72000 1
~?m,l~ 200~ WORTHINGTON DEVELOPMENTF L.P. 25-1847417 Paps,3
[;!!!i~ ~i Partners' Shares of Income, Credits, Deductions, etc.
(a) Distributive share items (b) Total amount
I Ordinary income (loss) from trade or business activities (page 1, line 22) ...................................................... I 2
2 Net income (loss) from rental real estate activities (attach Form 8825) ............................................................. 2
b Expenses from other rental activities (attach schedule) .............................. ab :~:::~:~:=~:~:~:~
c Net income (loss) from other rental activities. Subtract line 3b from line 3a ac
a Interastlncome ..................... SEE STATEMEN~...~. ......... 4a 207,
b Dividends: (1) Qualified dividends · (2) Total ordinary dividends · ............... 4fl
i ¢ Royalty income
4c
~ d Net short-tarm capital gain (loss): (1) post-May 5, 2003 · (2) Entira year · ...... 4d(2)
e Net long-term capital gain (loss): (1) post-May 5, 2003 · (2) Ent re year · ...... 4e(2)
f Other portfolio income (loss) (attach schedule) ....................................................................................... 4f
5 Guaranteed paymentsto partners 5
6 a Net section 1231 gain (loss) (post-May 5, 2003) (attach Form 4797) ............................................................ 6a
b Net section 1231 gain (loss) (entire year) attach Form 4797) ..................................................................6b
7 Otherincome (loss) (attacit schedule) ...................................................................................................... 7
~: 8 Charitable contributions (attach schedule) 8
~ g Section 179 expense deduction (attach Form 4562) ................................................................................. g
~ 10 Deductions related to portfolio income (itemize) ....................................................................................... 10
¢3 11 Other deductions (attach schedule) ......................................................................................................... 11
12a Low-incomehousingcradit: I From pattnerahips to which section 42(j)(5) applies ..................... 12a(1)
~ (2) Other than on line 12a(1) .................................................................................................................. 12a(2)
b Qualified rehabilitation expenditu res related to rental real estate activities (attach Form 3468) 12b
s Credits (other than credits shown on lines 12a and 12b) related to rental real estate activities ..............................12c
d Credits related to other rental activities ................................................................................................... 12d
13 Other credits ....................................................................................................................................... 13
!~! 14, Interest expense on investmentdebts ...................................................................................................... 14a
b(1) Investment income included on lines 4a, 4b(2), 4c, and 4f above ............................................................14b(1) 207.
(2) Investment expenses included on line 10 above ................................................................................ 14b(2)
~:~ 15 a Net earnings (loss) from serf-employment ................................................................................................ l§a 0.
· e.e b Gross farming or fishing income 15b
u~ c Gross nonfarm income ........................................................................................................................ 15s
18 a Depreciation adjustment on property placed in service after 1986 .................................................................. 16a
b Adjusted gain or loss ........................................................................................................................... lgb
~ ~ c Depletion (other than oil and gas) 16c
~.- d (1) Grossincomefromoil, gas, and geotharmalproperties ........................................................................ 16d(1)
· (2) Deductions allocable to oil, gas, and geothermal properties .................................................................. 16d(2)
~ e Other adjustments and tax preference items (attach schedule) ..................................................................... 16e
17 a Name of foreign country or U.S. possession ·
b Gross income from all eQuines 17b
c Gross income sourced at partner leve 17c
d Foreign income sourced at
gross
partnership
level:
(1) PassNe · (2~ LiSmdCateg~s(attachsch.) · (3) Gene~Himledi~· 17d 3
._m e Deductions allocated and apportioned at partneHevel:
(1) Interest expense · . (2) Other ....................................... · .~1.7,~
"° f Deductions allocated and apportioned st partnership level to foreign source income:
(1) Pas~ · (2) LIstedcal~godes(aeachsch,) · (3) GeneralliTllhMion· 17f(3)
g Total foreign taxes (check one): · Paid r--] Accrued ~ .............................................................. 17g
h Reduction in taxes available for credit (attach schedule) .............................................................................. 17h
18 Section59(e 2)expenditures:aType· bAmount · 18b
19 Tax-exempt interest income 19
.~ 20 Other tax-exempt income ..................................................................................................................... 20
~ 21 Nondeductible expenses 21
22 Distributions of money (cash and marketable securities} .............................................................................. 22 15 r 0 0 0
20 Distributions of property other than money .................................................................................. 23
24 Other items and amounts required to be reported separataly to partners (attach schedule) .................................
JWA Form 1065 (2003)
3
570722 706230 72000 2003.05050 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENTr L.P.
2 Analysis by (ii) Individual (iii) individual
partner type: (active) (passive)
a General partners
b Limited partcera 2 ! 514.
Note: Schedu es L, M-1 and M-2 are not requ red [f Question 5 of Schedule B is answered "Yes.'
Form 1065 (2003)
Analysis of Net Income (Loss)
· (v) Exempt
(i) Corporate (iv) Partoership organization
25
Balance Sheets
Ii:~!ii~:~i~:~ I~econciliation of Income (Loss) per Books With Income (Loss) per Return
25-1847417 Page4
2,539
(vi) Nominee/Other
~2-re-o3 JWA Form 1065 (2003)
;570722 706230 72000 2003.05050 WORTHINGTON DEVELOPMENT, L. 72000 1
I Balance at beginning of year ........................... 2 I r 368. 6 Distributions: a Cash ................................. 15 r 000.
2 Capitalcontributed: a Cash ........................... b Property ...........................
b Property ..................... 7 Other decreases (itemize):
B Net income (loss) per books ........................... 2 r 539 .
4 Other increases (itemize}:
8 Add lines 6 and 7 ....................................... 15¢000.
~n~5 Add lines 1 th rou.qh 4 .................................... 2 3 ! 9 0 7 · 9 ss~an~.t end of year. Subtmc( tine e frem line 5 8 r 9 0 7 .
Analysis of Partners' Capital Accounts
I Net income (loss) per books ........................ 2 r 539 8 Income recorded on books th s year not
included on Schedule K, lines 1 through
2 Income included on Schedule K, lines 1 through 7 (itemize):
4, 6b, and 7, not recorded on books this year a Tax-exempt interest $
(itemize):
S Guaranteedpayments(otherthanhealth 7 Deductions included on Schedule K, linesl
insurance) ................................................ through 11,14a, 17g, and 18b, not charged
4 Expences recorded on books thls year not against book income this year (itemize):
included on Schedule K, lines 1 through a Depreciation $
11, 14a, 17g, and 18b (itemize):
a Depreciation $
b Traver and entertainment $ 8 Add lines 6 and 7 .......................................
9 Income (loss) (Analysis of Net Income (Loss),
:~:~=~i~:~,:~::~ 4 .. .................. : ............... . 2r 5 3 9. line 1). Subtract line 8 from line 5 .................. 2r 5 3 9.
Assets Beginning of tax year End of tax year
[~} (bi (~1 (d)
Less allowance for bad debts ..................
Inventories .......................................... ~ ...............................__ ___95~501
Less a~umulated depreciation ...............
Less a~umulated depletion ..................
Less accumulated amo~ization ............... 6 [ 729 l r 346. 7 r 178 · i 897,
~' 8~907,
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
9RM 1065
OTHER DEDUCTIONS
STATEMENT
ESCRIPTION
~COUNTING
EGAL
ROUND MAINTENANCE
EAL ESTATE TAXES
NSURANCE
kNK CHARGES
PILITIES
DTAL TO FORM 1065,
LINE 20
AMOUNT
1,715.
7,107.
200.
1,210.
418.
787.
8.
11,445.
2HEDULE A
OTHER COSTS
STATEMENT 2
ESCRIPTION
ETTLEMENT COSTS
~TEREST
)MMISSIONS
~GINEERING
[NANCE CHARGES
)TAL TO FORM 1065,
PAGE 2, LINE 5
AMOUNT
829.
5,511 .
100.
449.
6,889.
~HEDULE K
INTEREST INCOME
STATEMENT 3
~SCRIPTION
~C BANK
)TAL TO SCHEDULE K,
LINE 4A
U.S. BONDS
OTHER
207.
207.
5 STATEMENT(S) 1, 2, 3
570722 706230 72000 2003.05050 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
~HEDULE L OTHER CURRENT ASSETS STATEMENT 4
~SCRIPTION
JE FROM MAYBELLE L.
~EPAID INSURANCE
)TAL TO SCHEDULE L,
BEGINNING OF
TAX YEAR
END OF TAX
YEAR
CLAYPOOL, INC. 768. 768.
91.
LINE 6 768. 859.
~HEDULE L
OTHER CURRENT LIABILITIES
STATEMENT 5
~SCRIPTION
~CRUED INTEREST
)TAL TO SCHEDULE L, LINE 17
BEGINNING OF
TAX YEAR
END OF TAX
YEAR
662. 2,386.
662. 2,386.
)RM 1065 PARTNERS' CAPITAL ACCOUNT SUMMARY STATEMENT 6
~TNER BEGINNING CAPITAL SCHEDULE M-2 WITH- ENDING
IMBER CAPITAL CONTRIBUTED LNS 3, 4 & 7 DRAWALS CAPITAL
1 1,816. 25. 1,841.
2 9,776. 1,105. 7,500. 3,381.
3 9,776. 1,409. 7,500. 3,685.
~TAL
21,368. 2,539. 15,000. 8,907.
6 STATEMENT(S) 4, 5, 6
570722 706230 72000 2003.05050 WORTHINGTON DEVELOPMENT, L. 72000 1
1
,.t~.~o.ge,.,.~tSCHEDULE(Form~..u. 1065) or ~.s~,,=. 'r,~...~, K-1 h0f;innln;I
Partners identifying number ·
Partner's name, address, and ZiP code
25-1841672
Partner's Sham of Income, Credits, Deductions, etc.
For calendar year 2003 or tax year
, r and ending ,
Partnershlp's Identifying number ·
Partnsrship's name, address, and ZiP code
MAYBELLE L. CLAYPOOL, INC.
1300 MT LAUREL CIRCLE
HARRISBURG~ PA 17110
A This partnerisa ~ generalpartner [---] limited partner
~ limited liability company member
B Whattypeofentityisthispartner? · S CORPORA. TION
C Isthispa~tnnra ~ domestic or a r-~ foreign partner?
D Enter partner's percentage of: ortermlna'dor~ year
Profit sharing % 1.0 0 0 0 0 0 0 %
Loss sharing % 1.0000000%
· OMB No. 1545-0099
2003
25-1847417
~;ORTHINGTON DEVELOPMENT,
1300 MT LAUREL CIRCLE
BARRISBURG ~ PA 17110
F Partner's share of liabilities:
Nonrecourse .................................... $
Quarifled nonrecourse financing ............ $
Other .............................................
n Tax shelter registration number ·
H
n,Po
456r223.
Check here if this partnership is a publicly traded partnership
ac defined in section 469(k)(2) ................................................ ~
Checkapplicuble boxes: {1) ~ FinaIK-1 (2) E~ Amended K-1
(a) Capital account at (b) Capital contributed (c) Partner's share of lines (e) Capital account at and
3, 4, and 7, Form 1065, (d) Withdrawals and of year (combine
beginning of year du ring year Schedule M-2 distributions qolumns (a) through (d))
lr816. 25. ( lr841.
(a) Distributive share item (b) Amount (c) 1040 filers enter the
amount in column (b) on:
I Ordinary income (loss) from trade or business activities ....................................... 2 3
2 Net income (loss) from rental real estate activities.~ See page S of Partner's Ins~'uctiot
................................................ for Sohe~ ule K-1 {Form 1065)
3 Net income (loss) from other rental activities ......................................................
4 Portfolio income (loss): a Interest .................................................................. 2. Form 1040, line 8a
b (1) Qualified dividends ................................................................................. Form 1040, line 9b
(2) Total ordinary drvidends ........................................................................... Form 1040, line 9a
u Royalties Sch. E, Part I, line 4
d (1) Net short-term capital gain (loss) (post-May 5, 2003) .................................... Sch. D, line 5, col. (g)
(2) Net short-term capital gain (loss) (entire year)
............................................. Sch. D, line 5, col. {f)
e (1) Netlong-tarmcapitalgain(Ioss)(post-May5,2003) .................................... Sch. D, line12, col.(g)
(2) Net Iong-tarm capita~ gain (loss) (entire year) ................................................ Sch. D, line 12 col. (f)
f Other portfolio income (loss) (attach schedule) ...............................................
5 Guaranteed payments to partner .....................................................................
6 (a) Net section 1231 gain (loss) (post-May 5, 2003)I See pages S and 7 or Partner's
.......................................... Instructions for Schedule K-1
(b) Net section 1231 gain (loss) (entire year) ................................................... (Form lOa5)
7 Other income (loss) (attach schedule) ...............................................................
8 Charitable contributions (attach schedule) ......................................................... Sch. A, line 15 or 16
9 Section 179 expense deduction .....................................................................
10 Deductions related to portfolio income (attach schedule) Instru~'flons for ScheCiule K-1
.................................... (Form 1065)
11 Other deductions (attach schedule) ..................................................................
13 Other credits .............................................................................................
14 a interest expense on investment debts .............................................................. Form 4952, line 1
b (1)Investment income Included on fines 4a, 4b(2), 4c, and 4f above .......................... 2 '[, sea page e of nar~e¢s ,ns~ction
(2)Investment expenses included on line 10 above ................................................... for Schedule K-1 (Form 1065)
15 a Net earnings (loss) from self-employment ......................................................... Sch. SE, Section A or a
c Gross nonfarm Income ................................................................................. Seapageg of Parlner's Instructions
for S~edMle K-1 (Felon 1065}
16Ob AdjustedDepreciati°ngainadjustmentor loss on property placed in service after 1986 ..........................,~ Sea pages U andjnstr~ctions for SchedulelD of Partner'SK_l
.................................................................................... (Form 1065) and Instructions
e Other adiustments and tax preference items (attach schedule) .............................. for Fom~ sas~
19 Tax-exempt interest income
........................................................................... Form 1040, line 8b
2D Other tax-exempt income ..............................................................................
21 Nondeductible expenses ............................................................................. s~e page lo of Partner's
22 Distributions of money (cash and marketable securities) ....................................... (Form ~oss)
23 Distributions of property other than money ...................................................... ·
JWA For Paperwork Reducflrm Act Notice, see Form 1065 Instructions.
311161
O2-17-O4
No Information Required for Page 2 Schedule K-1 (Form 1065) 2003
1
570722 706230 72000 2003.05050 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
.~HEDULE K-1 COLUMN C RECONCILIATION
ESCRIPTION
~DINARY INCOME (LOSS)
~TEREST INCOME
DTAL TO SCHEDULE K-l,
ITEM J, COLUMN C
AMOUNT
23.
2.
25.
8 Partner Number 1
1570722 706230 72000 2003.05050 WORTHINGTON DEVELOPMENT, L. 72000 1
2
SCHEDULE K-1
(Form 1065)
Partner's Identifying number ·
Partner's name, address, and ZIP code
190-16-2687
Partner's Share of Income, Credits, Deductions, etc.
For calendar year 2003 or tax year
, and ending
Partnershlp'e Identifying number ·
Partnerahip's name, address, and ZIP cede
HARRY S. CLAYPOOL
1300 MT LAUREL CIRCLE
HARRISBURGr PA 17110
A This partnerisa r-~ generalpartner ~ limited partner
[~] rimifed liability company member
B Whattypeofentityisthispartner? · TND'FVIDUAL
C Isthispartnera [~ domesticora ~ foreign partner?
Profit sharing % 43.5000000,
Loss sharing % 43.5000000,
Ownership of capital % 4 3 · 5 0 0 0 0 0 0
E IRSCe~ferwherepartrlemhlpflledretum: CINCIN"NATIr OH
· OMB NO.1545-0099
2003
25-1847417
~ORTHINGTON DEVELOPMENT,
[300 MT LAUREL CIRCLE
~ARRISBURGr PA 17110
Partner's share of liabilities:
Nonrecourse .................................... $
Qualified nonrecourse financing ............ $
Other ............................................. $
Tax sheltar rsgistration number ·
n. Po
Check here if this partnership is a publicly traded partnership
as defined i6 section 469(k)(2) ................................................ r'--]
J Analysis of partner's capltaluscount:
I Check applicable boxes: (1) r--] Final K-1 (2) [~] Amended K-1
(u) Partner's share of lines (e) Capital account at end
(u) Capital account at (b) Capital contributed 3, 4, and 7, Form 1065, (d) Withdrawals and of year (combiue
beginning of year during year Schedule M-2 distributions columns (a)through
9r776. ltl05. 7r500. 3r381.
(a) Distributive share item (b) Amount (c) 1040 filers enter the
amount in column (b) on:
I Ordinary income (loss) from trade or business activities ....................................... 1~015. '~
2 Net income (loss) from rental rea~ estate activities) See page 6 of Parker's InstnJction
................................................ for Schedule K-1 (Form 1065)
3 Net income (loss) from other rental activities ......................................................
4 Port/olio income (loss): a Interest .................................................................. 9 0 Form 1040, line 8a
b (1) Qualified dividends ................................................................................. Form 1040, line 9b
~'~ (2) Total ordinary dividends ........................................................................... ! Form 1040, line 9a
~ c Royalties Sch. E, Part I, line 4
~ d (1) Netshort-tarmcapitalgain(Ioss)(post-May5,2003) .................................... Sch. D, line5, col.(g)
oo (2) Net short-term capifal gain (loss) (entire year) ............................................. Sch. D, line 5, col.
--~ e (1) Netlong-tarmcapitaloain(Ioss)(post-MayS, 2003) .................................... Sch. D, line12, col.(g)
(2) Net long-term capital gain loss entire year) ............................................. Sch. D, line 12 col. (f)
f Other portfolio income (loss) (attach schedule) ................................................
5 Guaranteed payments to partner .....................................................................
6 (a) Net section 1231 gain (loss) (post-May 5, 2003) ......................................... I.str.cuonsSe" pages 6 and 7 o~p~ne¢sfor Schedule,
(b) Net section 1231 gain (loss) (entire year) ...................................................
7 Other income (loss) (attach schedule) ..............................................................
8 Charitable contributions (attach schedule) ......................................................... Sch. A, line 15 or 16
¢ a g Section 179 expense deduction
.O ..................................................................... See page e of Partner's
¢3' 10 Deductions related to portfolio income (attach schedule) [natruct~ons for schedule K-1
.................................... O=orm 1065)
11 Other deductions (attach schedule) ..................................................................
.~.,; 1S Other credits ............................................................................................. (Enter on 8pplicable lines ofyour return)
e~uJ 14 a Interest expense on investment debts Form 4952, line 1
~,.,~ .~ b (1)investment income included on lines 4a, 4b(2), 4c, and 4f above ........................... 9 0 · ~ nee page 9 ef Par~neCs Instrucfiom
~j~~ (2)Investment expenses included on line 10 above .................................................J for ech~:l.,. K*I (Foprn 1065)
-- 15 U Net earnings (loss) from self-employment ......................................................... 0 · Sch. SE, Section A or B
............................................................................... for Schedule K-1 (Form 1085)
~ 16ab AdjustedDepreciati°ngainadjustmentor loss on property placed in service after 1986 .............................~ InstrdctlonsSee pages 9 andfor Schedutel0 of Par~er'sK_l
................................................................................... (Form 1065) and I nstmceons
e Other adiustments and tax preference items lattach schedule) .............................. for norm 62~1
19 Tax-exempt interest income .......................................................................... Form 1040, line 8b
~ 20 Other tax-exempt income ..............................................................................
/
.............................................................................. Inst~ctlons for Sch~ule K-1
22 Distributions of money (cash and marketable secudUes) ....................................... 7 r 5 0 0. ] IFo~ 1
23 Distributions of property other than money .........................................................
JWA For Paperwork Reduction Act Notice, see Form 1065 instructions.
311161
O2-17-O4
No Information Required for Page 2 Schedule K-1 (Form 1065) 2003
2
;570722 706230 72000 2003.05050 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
~HEDULE K-1 COLUMN C RECONCILIATION
~SCRIPTION
[DINARY INCOME (LOSS)
;TEREST INCOME
)TAL TO SCHEDULE K-l, ITEM J, COLUMN C
AMOUNT
1,015.
90.
1,105.
10 Partner Number 2
570722 706230 72000 2003.05050 WORTHINGTON DEVELOPMENT, L. 72000 1
3
InternedDe~ol~rb31ent(FormSCHEDULE ~.~.. 1065) of t,Osa.,,. T~..~ K-1 begrnninf~
Partner's Identifying number ·
Partner's name, address, and ZiP code
182-14-6282
Partner's Share of Income, Credits, Deductions, etc.
For calendar year 2003 or tax year
i and ending
Partnershlp's Identifying number · '
Partnership's name, address, and ZfP code
MAYBELLE CLAYPOOL
1300 MT LAUREL CIRCLE
HARRISBURGr PA 17110
A This pa[tneris a ~ generalpartner ~ limited partner
r-~ limited liabil~ company member
B Whattypeofentityisthispartner? ~' INDTVTDUi~T~
C Isthis partnera ~ domesticora [~] foreign partner?
D Enterpartner'spercentage of: orterminaeon year
Profd shadng % 55.5000000%
Loss sharing % 55.5000000%
Ownership of capital % 5 5 · 5 0 0 0 0 0 0 %
E ,~sc~t,rw~e,.pa~.rs,,pe,e~,~.,.~ CINCINNATIr OH
· 0M82003No. 1545-0099
25-1847417
J Anafysls of partner's capltalaccount:
{ORTHINGTON DEVELOPMENT, .L.P.
1300 MT LAUREL CIRCLE
HARRISBURG, PA 17110
F Partner's share of liabilities:
Nonrecourse $
Qualified non recourse financing ............ $
Other ............................................. $
G Tax shelter registration number ·
H Check here if this partnership is a publicly traded partnership
as defined in section 469(k)(2) ................................................
I Check applicable boxes: {1) r~ Final K-1 (2) ~ Amended K-1
(a) Capital account at (b) Capital contributed (c) Partner's share of lines (e) Capital account at end
3, 4, and 7, Form 1065, (d) Withdrawals and of year (combine
beginning of year during year Schedule M-2 distributions columns (a) through (d))
9r776. lr409. ( 7r500. 3r685.
(a) Distributive shers item (b) Amount (e) 1040 fliers enter the
amount in column (b) on:
I Ordinary income (loss) from trade or business activities ....................................... 1 r 2 9 4 · ')
2 Net income (loss) from rental mai estate activities,~ Sea page 6 of Par~ner's Instructlor
................................................ for Schedule K-1 (Form 1065)
3 Net income (loss) from other rental activities ......................................................
4 Portfolioincome(Ioss):a Interest .................................................................. 115 o Forml040,1ineea
b (1) Qualified dividends ................................................................................. Form 1040, line 9b
~ (2) Total ordinary dividends ........................................................................... Form 1040, line 98
~ c Royalties 8ch. E, Part I, line 4
~ d (1) Net short-term capital gain (loss) (post-May 5, 2003) .................................... Sch. D, line 5, col. (g)
o (2) Net short-term capital gain (loss) (entire year)
e ............................................. Sch. D, line 5, col. (f)
_¢ e (1) Net long-term capital gain (loss) (pest-May 5, 2003) .................................... Sch. D, line 12, col. (g)
(2) Net long-term capital gain (loss) (entire year) ................................................ Sch. D, line 12 col.
f Other portfolio income (loss) (attach schedule) ................................................
S Guaranteed payments to partner .....................................................................
6 (a) Net section 1231 gain (loss) (post-May 5, 2003)I See pages e .nd 7 of par~nar'$
.......................................... Instructions for S~hedule K-I
(b) Net section 1231 gain (loss) (entire year) ................................................... (Fo.~ 1065)
7 Other income (loss) (attach schedule) ...............................................................
, 8 Charitable contributions (attach schedule) ......................................................... Sch. A, line 15 or 16
, 9 Section 179 expense deduction ..................................................................... '~ see page 8 of Partner's
10 Deductions related to portfolio income (attach schedule)~ InsmJcnona for Schedule K-1
.................................... (Form 1 O65)
11 Other deductions (attach schedule) ..................................................................
<., u.J 13 Other credits ............................................................................................ (Enter on applicable lin~ of your return)
.~¢6 148 Intarsst expense on investment debts
~ ~:~ ............................................................... Form 4952, line 1
· ~ b(1)lnvestment income included on lines 48, 4b(2), 40, and 4f above ........................... 115-t See page 9 of Padner's }nstructlom
0 ~ (2)Investment expenses included on line 10 above ................................................... for Schedule K-1 (Form 1065)
--__~ 15 a Net earnings (loss) from self-employment ......................................................... 0. Sub. SE, Section A or B
c Gross nonfarm income see p~e g of nartl~er'$ Instructions
................................................................................. for Schedule K-1 (Form 1065)
~ 16ab AdjustedDepreciati°ngainadjustmentor loss on proped:y pieced in service a/tar 1986 ........................... "~ See pages 9 andlnat~uctlons for SchedulelO of Par~ar'sK_l
.....................................................................................~ (ForTh 1065) and Instructions
~ "~ e Other adiustments and tax preference items (attach schedule} .............................. for Fo~m 6251
19 Tax-exempt interest income
........................................................................... Form 1040, line 8b
~ 20 Other tax-exempt income
~ 21 Nondeductible expenses see page 1 o of Par~efs
/
.............................................................................. Instructions for Scheclule K-
22 Distributions of money (cash and marketable securities) ....................................... 7 r 5 0 0. J IFo~ 10S5)
23 Distributions of property other than money .......................................................
3~116~ 'agerwork Reduction Act Notice, see Form 1066 Instructions· No Information Required for Pal e 2 Schedule K-1 (Form 1065) 2003
O2-17-04
3
570722 706230 72000 2003.05050 WORTHINGTON DEVELOPMENT, L. 72000 1
WORTHINGTON DEVELOPMENT, L.P. 25-1847417
2HEDULE K-1 COLUMN C RECONCILIATION
ESCRIPTION
~DINARY INCOME (LOSS)
NTEREST INCOME
DTAL TO SCHEDULE K-l,
ITEM J, COLUMN C
AMOUNT
1,294.
115.
1,409.
12 Partner Number 3
i570722 706230 72000 2003.05050 WORTHINGTON DEVELOPMENT, L. 72000 1
~ttlement Statement .~. =~.r~.~ o~
'11'
OMB AF~f~zml No. 2502-02~
I. [] FHA 2, [] FmHA 3. [] Co~v. UnJrm.
4.[]VA 5. ~-'1C,~nv. Inl.
CMH Butlda~/Clmrla~ M. Hov,=r
Griar Point RO~
~ PA 17053
~F~ ~,~II
~ T~p
Worthington Development, L.P.
1300 Mountain Laurel Circle
PA 17110
PA
Otlic~ of R. $cott Cramcr
Cent~' Square 4/13/04
Dlmcannon PA 17020 I
4/13/04 ~o 12/31/04
44t000.00
2,963.50
107.42
l~a. School 4/13/04 ~o 6/30/04 97.5C
110, Io
111. to
112. to
11o. m~o~ Smm~t I~n ~*mm moom,~ 47,168.42
213. to
214. Io
215. to
me. c~q/Iow, tax~ 4/13/04 to 12/31/04
44,000.0~
107.42
School 4/13/04 to 6/30/04 97.50
44,204.92
17~10~ mi. ExoN~deflo~
1,026.40
15~0~0.00
12,500.00
28,526.40
44,204.92
28,526.40)
15,678.52
PrevlOUl EdRion II Obsolete HUD-1 (3-8~)
RESPA, HB 4305.2
811).
112.
to The Sentinel Agency
125.00
160.00
11m, ~ ~ & ccttification to R. Scott Cramcr 300.00
Io no charge
Deed Preparation and S~]ement to Stevens 8: Lee
$ 440.00
38.50
35.00
250.00
440.00
54.00
13o4. Initiation Du~ to Meadowbr(x)k Farms
~. P, ec~mtion Fcc to Pan~, Development Co., Inc. -rcimbursemcnt by buyer for pmt. by Pama)
1~. Sew~ ~ Water Conncc~on Fcc -reimburscmcnt by buycr for plnt. by Pamay
1~o7, C(xmt~ and Tow~hip Real Estate Tax
100.O0
100.00
400.00
147.40
85/18/2884 13:14 ?175615287
A Settlement ~tatement
STE~JENS & LEE HSBDH
PA6E 86/87
ous ~ No.
4. E] v^ s. E] c~,.,,..
,w.. ,,., 1300 Moumain Laurel Cirdc
Amos Bhnk
S~[%~muX PA Hanisbur~ PA 17110
l¢*cs~lom4~k Farm.~, Lot 57. Phas~ 11
~ To~lg6p
Center
104.
~__~.=~u,~ 5111/04 ~: 12131,04
t~. Scbx, I $/11/84 ~ 6/30/04
50 000.1
~ 5/11/04 ~12/31/04
School 5111/04 ~ 6/30/04
50,160.78
J
113.
The Seatinel Agenc] ,. 25.0~
1113,
~ 30~.0C
150.40
.~. sw,,~m~,~ ~ s 500.00 :.~2_[~e $
500.00
500.uu
38.50
400.00
1,400,00
100,00
2~863.50
100.0O
U.$.DEPARTMENTOFHOU$1NG&URBANDEVELOPMEHT 1.r-]FHA · 2.C~FmHA 3,~-~CONV. UNIN$. 4. C]VA 5, r-~CONV. IN$.
SETI'LEMENT ,STATEMENT
~, ~ ~o~. T
~10, C*wFrow~_Tax~ Io T
~AUG 1 8 2003
Gl'-' ....................
AUG 1~ 2003
~UG-1S-RO~ 11:07 STEVENS LEE H~I$~URG ?1756152~ P.0'3
BI0.
1100. TITLE CHARGES
per
AGREEMENT OF LIMITED PARTNERSHIP
OF
WORTHINGTON DEVELOPMENT, L.P.
Dated as of July 16, 1999
AGREEIVIENT OF LIMITED PARTNERSHIP
OF
WORTHINGTON DEVELOPMENT, L,P.
TABLE OF CONTENTS
PAGE
ARTICLE I - GENERAL DEFINITIONS .......................... ~ ...... 1
Section 1.1. Definitions
ARTICLE H - NAME; FORIViATION; ORGANIZATIONAL CERTIFICATES ....... 5
Section 2.1. Name ............................................ 5
Section 2.2. Formation of Limited Partnership ......................... 5
Section 2.3. Organizationsl and Other Certificates ...................... 5
Section 2.4. Statutory Compliance ................................. 5
ARTICLE I~ - PURPOSES ........................................... 6
Section 3.1. Purposes ..... ' 6
ARTICLE IV TERM
Section 4.1. Term ............................................ 6
ARTICLE V o PRINCIPAL OFFICE; REGISTERED OFFICE ................... 6
Section 5.1. Principal Office ..................................... 6
ARTICLE VI - MANAGEMENT ....................................... 6
Section 6.1. General Partner ...................... . ............... 6
Section 6.2. Powers of the General Partner ........................... 6
Section 6.3. Tax Controversies ................................... 8
Section 6.4. Limitations on Authority ............................... 8
Section 6.5. General Partner Fees ................................. 8
ARTICLE VII - CAPITAL
Section 7.1. Initial Capital Contributions; Additional Capital Contributions ..... 8
Section 7.2. Withdrawals f~om Capital Accounts ....................... 9
Section 7.3. Capital Accounts .................................... 9
Section 7.4. Determination of and Adjustments to Book Value and Capital
Accounts
ARTICLE VIII - PROFITS, LOSSES AND DISTRIBuTIONS .................. 11
Section 8.1. Positive Cash Flow ................................. 11
Section
Section
Section
Section
Section
8.2. Distribution of Positive Cash Flow ....................... 12
8.3. Determination of Net Book Profit and Net Book Losses ........ 12
8.4. Allocation of Net Book Profits and Net Book Losses .......... 13
8.5. Allocations to Comply With Applicable Treasury Regulations .... 14
8.6. Federal Income Tax Allocations ......................... 15
Section 8.7. Allocation of Taxable Income and Loss and Tax Credits on the
Transfer of a Partnership Interest ............................ 16
Section 8.8. Special Tax Audit Allocations .......................... 16
Section 8.9. Interest .......................................... 16
Section 8.10. Credits .................... ..................... 17
ARTICLE IX - BOOKS OF ACCOUNT, RECORDS AND REPORTS ............ 17
Section 9.1. Books and Records .................................. 17
Section 9.2. Tax Information .................................... 17
Section 9.3. Annual Reports .................................... 17
Section 9.4. Aooounting Principles ................................ 17
ARTICLE X - FISCAL YEAR ........................................ 17
Section 10.1. Fiscal Year ...................................... 17
ARTICLE XI - LIABILITY OF GENERAL PARTNER;
EXCULPATION; INDEMNIFICATION; REIMBURSEMENT ....... 18
Section 11.1. Liability of General Partner ........................... 18
Section 11~2. Exculpation ...................................... 18
Section 11.3. Indemnification ................................... 18
Section 11.4. Reimbursement ................................... 18
ARTICLE XII
Section
Section
Section
Section
Section
Section
Section
Section
Section
- RIGHTS AND LIMITATIONS OF
LIMITED PARTNERS; MEETINGS; AMENDlvlENTS ......... 18
12.1. Limited Assessment ................................ 18
12.2. No Right to Manage ................................ 19
12.3. Priority ......................................... 19
12.4. Death, Disability, Etc. of a Limited Partner ................ 19
12.5. Meetings ........................................ 19
12.6. Voting Rights of Limited Partners ...................... 20
12.7. Proposal and Adoption of Amendments Generally ............ 21
12.8. ]',iraltations on Amendments ........................... 22
12.9. Amendments on Admission or Withdrawal of Partners ......... 22
ARTICLE XT~
Section
Section
Section
Section
Section
section
Section
Section
Section
Section
- TRANSFERS BY LIMITED
PARTNERS; REPURCHASE OF INTERESTS ............ 22
13.1. Prohibited Transfers ................................ 22
13.2. Compliance with Securities Laws ....................... 23
13.3. Transfer ........................................ 23
13.4. Admission of Substitute Limited Partner .................. 23
13.5. Status of Transferee ................................ 23
13.6. Election to Treat Transferee as a Parmer .................. 24
13.7. Death, Bankruptcy, Incompetence, Etc. of a Limited Parmer ..... 24
13.8. Transferee(s) ..................................... 24
13.9. Tax Elections ..................................... 24
13.10. Admission of Additional Limited Parmers ................ 24
ARTICLE XIV CHANGES TO THE GENERAL PARTNER .................. 25
Section 14.1. Removal of the General Partner
.............. . .......... 25
Section
Section
Section
Section
Section
Section
14.2. Withdrawal ...................................... 25
14.3. Transfer of Interest ................................. 26
14.4. Continuing Liability ..... · .... ....................... 26
14.5. Admission of Successor General Partner .................. 26
14.6. Effect of Bankruptcy, Dissolution, Etc. of the General Partner . .. 27
14.7. Appointment of Additional General Parmer ................ 27
ARTICLE XV - DISSOLUTION OF THE PARTNERSHIP .................... 27
Section 15.1. Events of Dissolution ............................... 27
Section 15.2. Election to Continue the Parmership ..................... 28
ARTICLE XVI -ADDITIONAL PROVISIONS CONCERNING
DISSOLUTION OF THE PARTNERSHIP .............. 28
Section 16.1. Winding Up Affairs; Liquidation ....................... 28
Section 16~2. Time for Liquidation ............................... 29
Section 16.3. Required Reports .................................. 29
Section 16.4. Termination ...... - .' .............................. 29
Section 16.5. Distribution of Proceeds From the Liquidation of the Partnership 29
Section 16.6. Capital Account Adjustments .......................... 29
Section 16.7. Compliance With Treasury Regulations ................... 30
ARTICLE XVII - NOTICES ......................................... 30
Section 17.1. Notices ......................................... 30
ARTICLE XVIII - REPRESENTATIONS AND WARRANTIES ................ 30
Section 18.1. The General Partner ................................ 30
Section 18.2. Limited Partners ................................... 31
ARTICLE XIX - MISCELLANEOUS ................................... 32
Section 19.1. Arbitration ...................................... 32
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
19.2. Purchase Details ................................... 32
19.3. Certificates, Etc ................................... 33
19.4. Power of Attorney ................................. 33
19.5. Partners' Relationship Inter Se ......................... 33
19.6. Partition Waived .................................. 33
19.7. Entire Agreement .................................. 33
19.8. Governing Law ................................... 34
19.9. Binding Effect .................................... 34
19A0. Gender and Number ............................... 34
19.11. Captions ....................................... 34
19.12. Severance ...................................... 34
19.13. Execution of Instruments; Reliance by Third Parties ......... 34
19.14. Counterparts .................................... 34
iii
AGREEMENT OF LIMITED PARTNERSHIP
OF
WORTi:IINGTON DEVELOPMENT, L.P.
THIS AGREEMENT OF LIMITED PARTNERSHIP (this ",~greement") is made and
entered into as of July 16, 1999, by and between MAY'BELLE L. CLAYPOOL, INC., a
Pennnylvania corporation (the "General Partner,), and the Persons whose names are set forth in
Exhibit A to this Agreement as the limited partners (hereinafter such Persons are referred to as
the "Limited Partners").
WITNESSETH:
WI~,REAS, the parties to this Agreement desire to form a limited par~ership organized
as described herein and to set forth in writing the agreement pursuant to which Worthington
Development, L.P. (the "Partnership") will conduct its business.
NOW, TH]gREFORE, in consideration of the premises and the mutual agreements
hereinafter set forth, the parties hereto, intending to be legally bound hereby, agree as follows:
ARTICLE I - GENERAL DEFINITIONS
Section 1.1. De£mitions. As used in this Agreement, the following terms shall have the
following meanings:
Additional Capital Contribution means that additional capital contributed by the Partners
to the Partnership in accordance with the provisions of Section 7.1(h).
MEdiate when referring to any Person shall mean (i) any Person directly or indirectly
controlling, controlled by or under common control with such Person, (ii) any general partner,
limited liability company manager, business trust trustee, officer or director of such Person or
(iii) any Person holding or owning, directly or indirectly, ten percent (10%) or more of the
outstanding voting securities of such Person or any Person directly or indirectly controlling,
control/ed by or under common control with such Person.
Aggregate Net Book Losses and Aggregate Net Book Profits shall have the meardngs
ascribed to such terms in Section 8.4 hereof.
Agreement shall mean this Agreement of Limited Partnership of the Partnership.
Arbitrators shall mean the persons selected pursuant to Section 19.1 to settle any
controversy, dispute or claim under this Agreement.
Book Value shall mean, with respect to any Partnership asset, the asset's book value as
carried on the books and records of the Partnership, determined in compliance with the provisions
of applicable Treasury Regulations, including Treasury Regulation Section 1.704-1Co)(2)(iv), and
more particularly described in Section 7.4 hereof.
Capital Account shall mean the capital account established for each Partner and
maintained pursuant to the terms of this Agreement ia accordance wi~da the provisions of
applicable '~reasury Regulations, including Treasury Regulation Section 1.704-1(b)(2)(iv).
Claim Statement shall mean the written statement submitted .by an aggrieved party or
parties to the General Partner pursuant to Section 19.1 of this Agreement setting forth (i) the
controversy, dispute or claim under this Agreement which is to be submitted to arbitration,
(ii) the resolution or relief sought and (iii) one qualified reputable individual willing and able to
act as an arbitrator.
Code shall mean the l. utemal Revenue Code of 1986, as emended.
Contribution Loan has the meaning ascribed to it in Section 7.1(c) hereof.
Contributing Partner has the meaning ascribed to it in Section TI(c) hereof.
Counterstatement shall mean the counterstatement delivered by an opposing party or
parties to the General Partner (with a copy to the aggrieved party or parties) within ten (10)
business daYs after the receipt of a Claim Stat&meat pursuant to Section 19.1 of this Agreement.
Depreciation shall mean, for each fiscal year or other period, the depreciation,
amortization or other cost recovery expense determined pursuant to Section 8.3(a) hereof.
General Partner shall mean MaybeIle L. Claypool, Inc.
Gross Fair Market Value shall mean the agreed fair market value of an asset determined
without taking into account any liabilities which are secured by such asset or which are
otherwise associated with such asset.
Initial Capital Contribution shall mean the initial capital contributed or deemed
contributed to the Partnership by the Parmers as listed on Exhibit A to this Agreement.
Limited Partner means each of the Limited Partners of the Par~aership as shown on
Exhibit A to this Agreement.
Minimum Gain shall mean the aggregate amount of gain (of whatever character),
computed with respect to each property of the Partnership that secures a Third Party Nonrecourse
Liability of the Partnership, that would be recognized by the Partnership if, in a taxable
transaction, the Partnership were to dispose of such property in full satisfaction of such Third
Party Nonrecourse Liability. The emount of Minimum Gain and the emount of any Partner's
share of Minim.am Gain shall be determined in accordance with the provisions of applicable
Treasury Regulations, including Treasury Regulation Section 1.704-2(d).
Net Book Losses and Net Book Profits shall have the meanings ascribed to such terms
in Section 8.3 hereof.
2
Net Fair Market Value shall mean, in connection with the contribution of an asset to the
Partnership by a Partner and/or in connection with the distribution of an asset by the Partnership
to a Partner, the Gross Fair Market Value of such asset reduced by any liabilities (i) assumed by
such Partner or the Parmership or (ii) subject to which such Parmer or the Parmership takes such
asset.
Non-Contributing Partner has the meaning ascribed to it in Section 7.1 (c) hereof.
Nonrecourse Deduction shall mean an allocation of loss and/or expense (or item thereof)
attributable to Third Party Nonrecourse Liabilities, determined in accordance with the provisions
of applicable Treasury Regulations, including Treasury Regulation Section 1.704-2Co) and (c).
Participating Percentage shall mean, with respect to each Partner, the percentage
determined by dividing (i) the number of Units assigned to such Partner in Exhibit A to this
Agreement by (ii) the total number of Units then assigned to all Partners.
Partner Nonrecourse Deduction shall mean an allocation o floss and/or expense (or item
thereof) attributable to Pm'tact Nonrecourse Liabilities, determined in accordance with the provi-
sions of applicable Treasury Regulations, inct~ding Treasury Regulation Section 1.704-2(i)(2).
Partner Nonrecourse Liabilities shall mean liabilities of the Partnership which are
nonrecourse debt (as. defined in applicable Treasury Regulations, including Treasury Regulation
Section 1.704-2(b)(4)) but .with respect to which one or more Partners (or the Affiliate of any
Partner) bears the economic risk of loss (as defined ha applicable Treastu~ Regulations, including
Treasury Regulation Section 1.752-2).
Partner Nonrecourse Liability Minimum Gain shall mean the aggregate amount of gain
(of whatever character), computed with respect to each property of the Par~ership which secures
a Partner Nonrecourse Liability of the Partnership, that would be reeo~mi~ed by the Partnership
if, in a taxable transaction, the Pamership were to dispose of such property for no consideration
other than full satisfaction of such Parmer Nonrecourse Liability. The amount of Parmer
Nonrecourse Liability Minimum Gain and the amount of any Parmer's share of Parmer
Nonrecourse Liability Minimum Gain shall be determined in accordance with the provisions of
applicable Treasury Regulations, including Treasury Regulation Section 1.704-2(i)(3).
Partner shall mean any of the Par~ers of the Partnership.
Partners shall mean the partners of the Partnership.
PartnerShip shall mean the limited paxtnership created under this Agreement.
Partnership Act shall mean the Pennsylvania Revised Uniform Limited Partnership Act,
as the same may be amended from time to time:
Partnership Interest Valuation shall mean, with respect to the interest in the Partnership
of any Partner, the value determined by a committee composed of three (3) independent
appraisers experienced ha the valuation of businesses similar to the Partnership's and qualified
3
to evaluate the assets of the Parmership, one (1) chosen by the Partner whose interest in the
Partnership is being valued, one (1) chosen by (A) the General Partner Qr (B) in the case of the
valuation of the interest in the Partnership of any General Partner or any Affiliate thereof,
Limited Partners (other than said General Partner or any Affiliate thereof) holding a majority of
the Units then held by Partners other than said General Parmer or any Affiliate thereof, and the
third chosen by the two appraisers chosen above. The proceedings and determination of such
committee shall be prompt and shall conform to the rules for binding arbitration set forth in this
Agreement. Notwithstanding anything set foflh above, if the Persons described in this paragraph
as the Persons who are to select the initial two (2) appraisers so agree, Partnership Interest
Valuation shall mean the value agreed to by such Persons.
Person shall mean an individual person or persons, cOrporation, partuership, trust, joint
venture, proprietorship, estate, or other incorporated or nnlncorporated enterprise, entity or
organization of any kind whatsoever.
Prime Rate means the prime rate (or base rate) reported in the "Money Rates" cob]m'n
or section of The Wall Street Journal as being the base rate on corporate loans at larger U.S.
Money Center banks on the first date on which The Wall Street Journal is published in each
month. In the event The Wall Street Joumal ceases publication of the Prime Rate, then the
"Prime Rate" shall mean the "prime rate" or "base rate" announced by the bank with which the
Partnership has its principal banking relationship (whether or not such rate has actually been
charged by the bauk) or as otherwise designated by the General Partner. In the event that bank
discontinues the practice of announcing that rate, Prime Rate shall mean the highest rate charged
by that bank on short-term, unsecured loans to its most credit-wo~hy large corporate borrowers,
unless otherwise designated by the General Partner.
Positive Cash Flow shall have the meaning ascribed to it in Section 8.1 below.
Real Property shall have the meaning ascribed to it in Section 3.1 below.
Securities Act shall mean the Federal Securities Act of 1933, as amended.
Special Limited Partner shall mean the status of a General Part~xer if such Partner is
removed as a General Partner of the Partnership, as more fully described in Section 14.1 below.
Substitute Limited Partner shall mean any Person admitted as a Limited Partner of the
Partnership in substitution of another Limited Partner in accordance with the provisions of this
Agreement.
TaX Matters Partner shall mean the Partner designated in this Agreement as the Tax
Matters Partner as defined in Code Section 6231(a)(7).
Third Party Nonrecourse Liabilities shall mean liabilities of the Partnership which are
nonrecourse debt (as defined in applicable Treasury Regulations, including Treasury Regulation
Section 1.704-2(b)(3)) and which are not Partner Nonrecourse Liabilities.
4
Total Minimum Gain shall mean the aggregate of the Minimum Gain and the Partner
Nonrecourse Liability Minlmurn Gain.
Treasury Regulations shall mean any applicable regulations promulgated under the Code.
Units shall mean the partnership interests in the Parmership, t6taling 100. The number
of Units of each Partner shall be set forth next to such Partner's name on Exhibit A to this
Agreement.
ARTICLE H - NAME; FORMATION; ORGANIZATIONAL CERTIFICATES
Section 2.1. Name. The name of the Partnership shall be "Worthington Development,
L.P." The business of the Partnership shall be cOnduCted under this name and such other regis-
tered fictitious names as the General Partner shall determine are appropriate.
Section 2.2. Formation of Limited Partnership. The Partnership shall commence
existence by filing a certificate of limited partnership with the Secretary of State of the
Commonwealth of Pennsylvania. With this Agreement, the Partners hereby agree to form a
limited partnership pursuant to the pmvisious 6fthe Partnership Act for the limited purposes and
upon the terms and conditions set forth herein.
Section 2.3. Organizational and Other Certificates. The General Partner shall execute
and file with the Secretary of State of the Commonwealth of Pennsylvania documents, certificates
and instruments required, necessary or appropriate in connection with the certificate of limited
partnership and the organization of the Partnership and the conduct of its business.
Section 2.4. Statutory Compliance.
(a) The Par~ership shall exist under and be governed by the applicable laws of the
Commonwealth of Pennsylvania. The Partners shall make all filings and disclosures required by,
and shall otherwise comply with, all such laws. Except as otherwise provided in this Agreement
or required by law, the r/ghts, duties, status and liabilities of the Partners, and the formation~
administration, dissolution and continuation or termination of the Partnership, shall be as provided
in the Partnership Act.
Co) Upon the request of the General Partner, the Limited Partners shall execute,
acknowledge, swear to and deliver all certificates and other iustnnnents and perform such addi-
tional acts consistent with the terms of this Agreement as may be necessary to enable the General
Partner to form, qualify, continue, conduct the business of, and terminate the Parmership as a lim-
ited partnership under the laws of the Commonwealth of Pennsylvania and to qualify, register,
continue and terminate the Partnership as a limited partnership in the Commonwealth of
Pennsylvania in accordance with the provisions of this Agreement.
ARTICLE HI - PURPOSES
Section 3.1. Purposes. The purposes of the Parmerslfip shall be to acquire, own,
develop, construct improvements on, manage, operate and lease and/or sell real property as may
be determined by the General Partner fxom time to time (the "Real Property"); and in furtherance
of these purposes, to engage in any lawful business activities. The Partnership shall not engage
in any other business activities without the unanimous agreement of all of the Partners.
ARTICLE IV - TERM
Section 4.1. Term. The term of the Partnership shall be i~om the date hereof to
December 31,. 2050, unless sooner terminated as hereinaf[er provided.
ARTICLE V - PRINCIPAL OFFICE; REGISTERED OFFICE
Section 5.1. Principal Office. The principal office of the Partnership shall be 15
Maybelle Court, Mechanicsburg, Pennsylvania 17055. The General Partner may change or
relocate the principal office of the Partnership and establish other or additional places of business
of the Partnership by giving written notice thereof to the Limited Parmers.
ARTICLE VI - MANAGEMENT
Section 6.1. General Parmer. The General Partner shall have the fight, authority and
obligation, to manage the Partnership for the purposes of the Partnership as set forth in this
Agreement; and, except as otherwise expressly provided in this Agreement, the decision-making
authority and plenary authority to implement the purposes of the Partnership shall reside with the
General Partner.
Section 6.2. Powers of the General Partner.
(a) The General Partner is hereby authorized and empowered to carry out and
implement the purposes of the Partnership; and, in accordance therewith, the General Partner
shall, except as otherwise expressly provided in this Agreement, have all the rights and powers
of a partner in a general partnership. The powers of the General Partner shall include, but shall
not be limited to, the following powers, as the General Partner deems necessary or adVisable:
(i) to exercise any or all of the rights, powers and obligations of the
Parmership with respect to any partnership in which the Partnership is a partner;
to engage personnel, attorneys, accountants and other Persons and/or
agents;
(iii) to hold in the form of cash, awaiting distribution or desirable
investments, portions of the Partnership funds;
or personal;
to invest in stocks, bonds, mortgages, securities or other property, real
(v) to enter into leases for any length of time, including, without limitation,
leases that extend beyond the term of the Partnership, and to acquire, own, develop, mortgage,
convey and to deal m any manner with, the property of the Parmership and interests therein,
includ~g, but not limited to easements, covenants and rights of way and transactions whereby
property is sold and then leased back to the Partnership;
(vi) to sell, exchange, lease, encttmber, option or otherwise dispose of all or
any portion of the assets held by the Partnership, and to make, execute and deliver deeds,
mortgages, leases, assignments and other doeurnents necessary to further the purposes of the
Partnership;
(vii) to vote by person or proxy any and all stock owned by the Partnership
and to participate in any reorganization or merger of companies or corporations whose stock is
held by the Partnership; to exercise any and all conversion, subscription and other rights of
whatever nature, including (but not by way of limitation) stock options with respect to any stocks,
bonds or other securities and, for the purpose of exercising such rights, the power to sell or
otherwise dispose of all or any part of the Partnership's assets, or to borrow for the purpose of
roaring payment;
(viii) to open, maintain and close bank accounts and to draw checks and other
orders for the payment of money;
- (ix) to borrow money and to make, issue, accept, endorse and execute
promissory notes, drafts, bills of exchange, loan agreements and other instruments and evidences
of indebtedness, and to secure the payment thereof by mortgage, confession of judgment, hypoth-
ecation, pledge or other assignment of or arrangement of security interests in all or any part of
the property then owned or thereafter acquired by or for the Partnership;
(x) to take actions and incur expenses on behalf of the Partnership in
connection with the conduct of the affairs of the Partnership and to provide reimbursement for
any such expenses advanced for the Parmership by the General Partner;
(xi) to enter into, make and perform contracts, agreements and other under-
takings in connection with the conduct of the affairs of the Partnership;
(xii) to use any portion of the assets or property of the Partnership for the
purposes of the Parmership as set forth in this Agreement;
(xiii) to adjust, compromise and settle or refer to arbitration any claim in favor
of or against the Partnership or any business or asset of the Partnership, and to institute, prosecute
or defend any and all such legal proceedings;
(xiv)
· of the Partnership;
to file all tax returns and forms, and to make all tax elections on behalf
(xv) to admit additional Limited Partners to the Partnership in accordance
with the terms of this Agreement;
7
(x¥i) to construct improvements on the Real Property; and
(xvii)
Agreement.
to do any and all things necessary to carry out the purposes of this
Co) The Limited Partners specifically approve and consen~ to the exemise by the
General Partner of the powers described in paragraph (a) of this Section.
(c) If there are ever more than one General Partner, the General Partners shall make
all decisions necessary to manage the Parmership by vote of the holders of the majority interest
of all General Partners.
Section 6.3. Tax Controversies. The General Partner shall be the "Tax Matters Parmer"
for the purposes of Code Section 6231(a)(7). Should there be any question or controversy with
the Internal Revenue Service or other taxing authority involving the Partnership, the Tax Matters
Partner shall act as the agent of the Partnership to resolve such question or controversy and may,
on behalf of the Partnership, incur any expenses such Partner deems necessary or advisable in the
interest of the Partners in connection with any such question or controversy, including pro-
fessional fees and the cost of any protest, litigation and/or appeals.
Section 6.4. Limitations on Authority. The General Partner shall not take any actions
which would cause any Limited Partner to be liable for any mounts in excess of the mounts
which such Limited Partner is expressly obligated to contribute to the capital of the Partnership
pursuant to this Agreement. The General Partner shall not without the consent of all Limited
Partners take any action which would cause the Partnership to be treated for Federal income tax
purposes as anything other than a partnership.
Section 6.5. General Partner Fees. The General Parmer shall not be pa/d management
or other fees.
ARTICLE VH - CAPITAL
Section 7.1. Initial Capital Contributions; Additional Capital Contributions.
(a) Initial Capital Contributions. This Agreement contemplates that the General
Partner and the Limited Partners will make substantial cash and other property contributions to
the Partnership in exchange for their respective interests in the Partnership. The Partners shall
contribute to the capital of the Partnership as their "Initial Capital Contributions" the sum~ and
property set forth on Exhibit A to this Agreement. Pursuant to applicable Treasury Regulations,
including 'Treasury Regulation Section 1.704-1Co)(2)(iv)(d), the Book Value of any property
contributed 'to the Partnership by the Partners as all or a portion of their Initial Capital
Contributions shall reflect the agreed fair market value of such property on the date of its
contribution to the Partnership. Each Partner's contribution to the Partnership shall be reflected
in such Partner's respective Capital Account in the amount set forth next to such Partner's name
on _Exhibit A to this Agreement.
Co) Additional Capital Contributions. The Part~ers shall contribute such other
amounts, in proportion to each Partner's Participating Percentage, as Additional Capital
Contributions as is determined to be reasonable and necessary by Lira/ted Partners holding more
than fifty percent (50%) of the then outstanding Units. Such Additional Capital Contributions
.~hall be immediately due and payable upon demand of the General Partner.
(c) Contribution Loan. In the event any Partner fails to make any additional capital
contribution required by this Section ('Non-Contributing Partner"), any of the other Partners (the
"Contributing Partner") shall have the right individually or collectively to advance directly to the
Partnership the funds required t~om the Non-Contributing Partner as a loan to such Partner
("Contribution Loan").
(d) Interest on Contribution Loan; Security for Repayment. In the event the
Contributing Partner elects to make a Contribution Loan, the Contribution Loan shall bear interest
at a variable rate equal to the lesser of the Prime Rate, plus four (4) percentage points, during
the time the loan remainn outstanding, or the maximum rate of interest then pea'mitted by
Pennnylvania law. The Contribution Loan shall be an individual obligation of the Non-
Contributing Partner and shall be repaid out of any subsequent distributions made pursuant to this
Agreement to which the Non-Coutributing Partner for whose account the Contribution Loan was
made would otherwise be entitled or fxom uny other sources of funds or assets of the Non-
Contributing Partner, which mounts shall be applied first to interest and then to principal, until
the Contribution Loan is paid in full. Repayment of a Contribution Loan shall be secured by the
Non-Contributing Partner's Participating Percentage. The Non-Contributing Partner hereby grants
a security interest in such Partner's interest in the Partnership to the Contributing Partner who
has advanced such Contribution Loan and hereby irrevocably appoints the Contributing Partner,
as his, her or its attorney-in-fact with full power to prepare and execute any documents,
instruments, and agreements, including, but not limited to any note evidencing the Contribution
Loan, and such Uniform Commercial Code financing statements, continuation statements, and
such other security documents in favor of the Contributing Pa2rtner, as the Contributing Partner
deems necessary to protect his, her or its repayment rights.
Section 7.2. Withdrawals from capital Accounts. No Partner shall be entitled to
receive interest on or to withdraw any amount from such Parmer's Capital Account other than
as expressly provided herein.
Section 7.3. Capital Accounts. A Capital Account shall be established and maintained
for each Partner in compliance with the provisions of applicable Treasury Regulations, including
Treasury Regulation Section 1.704-1Co)(2)(iv). In general, such Capital Accounts shall be main-
tained as follows:
(a) General Rules. Each Partner's Capital Account shall be (i) credited with the
amount of money contributed by such Partner to the Partnership, (ii) credited or debited, as the
case may be, with such Partner's allocation of income, gain, loss and expense made to such
Partner pursuant to the terms of this Agreement, and (iii) debited with the amount of cash and
the Net Fair Market Value of property distributed to such Partner pursuant to the terms of this
Agreement.
9
(b) Special Rules. If any Partner's interest in the Partnership is sold, exchanged or
liquidated, the following special rules shall apply when determining the Capital Account balances
of any new or remaining Partners: '
(i) The Capital Account of a selling or exchanging Partner shall be carded
over to the transferee Partner.
(ii) If such sale or exchange (together with such other sales or exchanges of
interests in the Partnership as occur during any relevant lime period) causes a termination of the
Partuership within the meaning of Code Section 708Co)(1)(B), the Capital Account of the selling
or exchanging Partner shall be carried over to the transferee Partner, and the Capital Accounts
of all Partners [as constituted after such transfer) shall carry over to the deemed new parmership
in accordance with applicable lreasury Regulations, including Treasury Regulation Section 1.708-
l(b)(1)(iv)(/).
(iii) If the Partnership has in effect at the time of any sale or exchange aa
election under Code Section 754, there shall not be made to the Capital Account of the Partner
who receives the special tax basis adjustment under Code Section 743 a corresponding adjustment
except to the extent such a special tax basis adjustment would be reflected in a Partner's
respective Capital Account pursuant to applicable Treasury Regulations, including Treasury
Regulation Section 1.704-1Co)(2)(iv)(m).
· (iv) If a Partner's interest in the Parmership is redeemed by the Partnership
through a dislribufion in complete liquidation of such interest, except as provided in paragraph
(a) of this Section, the Capital Accounts of the remaining Partners shall be adjusted only to the
extent required by applicable Treasury Regulations, including Treasury Regulation Section 1.704-
1 (b)(2)(iv)(m).
Section 7.4. Determination of and Adjustments to Book Value and Capital Accounts.
When determining the Book Value of the assets of the Partnership and the appropriate balances
in each Partner's respective Capital Account resulting fi-om any adjustments to such Book Value,
in accordance with the provisions of applicable Treasury Regulations, including Treasury
Regulation Section 1.704-1Co)(2)(iv), the following accounting roles shall apply:
(a) The initial Book Value of any asset contributed by a Parmer to the Partnership
shall be its Gross Fair Market Value on the date of contribution.
(b) The Book Values of all partnership assets shall be adjusted to equal their respective
Gross Fair Market Values, as of the following times:
(i) the acquisition of an interest (including an additional interest) in the
Partnership by any new or existing Partner in exchange for more than a de minirnis capital
conlribution to the Partnership if the General Partner determines that such adjustment is necessary
or appropriate to reflect the relative economic interests of the Partners with respect to the
Partnership;
10
(ii) the distribution by the Partnership to a Partner of more th~n a de minirnis
amount of money or other Partnership property if the General Parmer determines that such
adjustment is necessary or appropriate to reflect the relative economic interests of the Partners
with respect to the Partnership;
(iii) the liquidation of the Partnership within th~ meaning, of applicable
Treasury Regulations, including Treasury Regulation Section 1.704- lCo)(2)(ii)(g); or
(iv) the occurrence of any other event (including, without limitation, a
refinancing of any property of the Partnership) if the General Partner determines that suer
adjustment is necessary or appropriate to reflect the econonuc interests of the Parmers with
respect to the Partnership and is not prevented by applicable Treasury Regulations.
(c) The Book Value of any Parlnership asset distributed to any Partner shall be
adjusted to equal its Gross Fair Market Value an the date of such distribution.
(d) The Book Value of Partnership assets shall not be increased or decreased to reflect
any adjus~ents to the adjusted tax basis of such assets pursuant to Code Section 734Co) or Code
Section 743Co), except to the extentthat such adjustments are taken into account in determining
and maintaining capital accounts pursuant to applicable Treasury Regulations, including Treasm-y
Regulation Section 1.704-1Co)(2)(iv)(m); prOvided, however, that Book Value shall not be
adjusted pursuant to this provision to the extent that such adjustment was previously reflected in
the Book Value of the Partnership's assets.
(e) If the Book Value of an asset has been determined or adjusted pursuant to the
foregoing provisions of this Section, such Book Value shall thereafter be reduced by the
Depreciation taken into account w/th respect to such asset for purposes of computing the Net
Book Profits and the Net Book Losses of the Partnership pursuant to the terms of this Agreement.
ARTICLE VIII - PROFITS, LOSSES AND DISTRIBUTIONS
Section 8.1. Positive Cash Flow. The term "Positive Cash Flow" as used in this
Agreement shall mean the gross cash receipts generated from the operation of the business of the
Partnership from all sources, including, without limitation, all revenue and income obtained from
the sale of the assets or property of the Partnership as well as the proceeds from all refinancing
of mortgages or replacements of existing mortgages encumbering the property of the Partnership
available to the Partnership after (i) the payment or accrual for payment of all current operating
expenditures in connection therewith, including, without limitation, interest and principal
payments due on loans and other charges due pursuant to any mortgages encumbering the
property of the Partnership and after (ii) making provisions for the reasonable working capital
requirements of the Partnership and investments and reinvestments appropriate to enable the
Partnership to carry out its purposes but disregarding in determining Positive Cash Flow
depreciation, amortization, other noneash items and amounts to be distributed to the Partners
pursuant to the terms of this Agreement. The General Partner's determination with respect to
provisions for reasonable working capital requirements and appropriate investments and
reinvestments of the Partnership shall be conclusive.
11
Section 8.2. Distribution of Positive Cash Flow.
(a) Positive Cash Flow of the Partnership, to the extent available, shall be distributed
among the Partners pro rata in proportion to each Partner's respective Participating percentage.
(b) . The foregoing provisions of this Section to the contrkry notwithstanding, the
General Partner shall have the fight to apply any Positive Cash Flow to be distributed to a Partner
against any amounts due from, or required to be contributed by, such Partner to the Partnership.
Such application of any Positive Cash Flow shall be deemed to be a distribution to such Partner,
followed by a payment or contribution to the Partnership, as the case may be.
(c) Notwithstanding anything to the contrary set forth in this Section, any Positive
Cash Flow which arises during the liquidation of the Partnership shall be distributed in
accordance with the provisions of this Agreement dealing with the distribution of proceeds from
the liquidation of the Partnership.
Section 8.3. Determination of Net Book Profit and Net Book Losses. For purposes
of computing the amount of any items of income, galn~ loss or expense to be reflected in the
Partners' Capital Accounts (hereinafter the net of such items being referred to as the "Net Book
Profits" or the "Net Book Losses" of the Partnership), the determination, recognition and
classification of such items shall be the same as their determination, recognition and classification
for Federal income tax purposes, with the following modifications:
(a) Any item of expense attributable to depreciation, amortization or other cost
recovery with respect to any asset of the Partnership (hereinafter "Depredation") shall be in an
amount which bears the same milo to the Book Value of such asset at the beginning of the
applicable period as the Federal income tax deduction for depreciation, amortization or other cost
recovery with respect to such asset for such applicable period bears to the adjusted tax basis of
such asset at the beginning of such period; provided, that if the Federal income tax deduction
attributable to depreciation, amortization or other cost recovery for such applicable period with
respect to any asset is zero, the Depreciation with respect to such asset for such applicable period
shall be determined with reference to the Book Value of such asset as of the beginning of such
applicable period using any reasonable method selected by the General Partner.
Co) Any item of income, gain, loss or expense attributable to the taxable disposition
of any property with an adjusted tax basis which is different from the Book Value of such
property shall be determined as if the adjusted tax basis of such property as of the date of such
disposition were equal in amount to the Book Value of such property.
(c) If the Partnership's adjusted tax basis in an item of depreciable property is adjusted
pursuant to Code Section 50(c)(1) to reflect any investment tax credit available with respect to
such asset, the amount of such adjustment shall be treated as a Partnership expense and shall be
allocated in the ratio in which the investment tax credit (or qualified investment in such property)
which gave rise to such basis adjustment is allocated. Any restoration of such adjusted tax basis
pursuant to Code Section 50(c)(2) occurring as the result of any recapture of previously allowed
investment tax credit with respect to any Partnership property shall be treated as Partnership
income and shall be allocated in the same ratio in wkieh the investment tax credit (or qualified
12
investment in such property the disposition of which gave rise to such restoration of adjusted tax
basis) was origlnMly allocated.
(d) All expenditures of the Partnership not deductible in computing its taxable income
and not properly chargeable to capital account, and any otherwise nondeductible organization aud
syndication expenses of the Partnership (as described in Code Sectio~ 709) shall be treated as
Parmership expenses.
(e) Revenue of the Parmership which is exempt from Federal income tax shall be
included in the Net Book Profits or the Net Book Losses of the Partnership without regard to the
fact that such revenue is not includible in gross income for Federal'income tax purposes.
(f) Payments made to any Partner which are treated for Federal income tax purposes
as guaranteed payments pursuant to Code Section 707(c) shall be treated as Parmership expenses;
provided that such payments shall be treated as capital expenditures of the Partnership to the
extent such payments are required to be capitalized under the Code and any applicable Treasury
Regulations thereunder.
(g) ' In the event the Book Value of any Parmership asset is adjusted pursuant to the
te~ms of this Agreement, the amount of such adjustment shall be treated as gain or loss (as
appropriate) from a sale of such asset.
Section 8.4. Allocation of Net Book Profits and Net Book Losses. For purposes of
maintaining the Capital Accounts of the Partners and determining the rights of the Partners among
themselves with respect to the assets of the Partnership, the Net Book Profits or Net Book Losses
of the Parmership for each applicable period shall be allocated among the Partners in the order
of priority set forth below. Each item of such income, gain~ loss or expense giving rise to such
Net Book Profits or Net Book Losses of the Partnership for such period shall be allocated among
the Partners in the same proportion that such Net Book Profits or Net Book Losses of the
Partnership for such period are allocated among the Partners.
(a) Allocation of Net Book Profits.
(i) Net Book Profits for any period shall first be allocated in the same
amounts and in the same proportions as the Aggregate Net Book Losses of the Partnership for
all earlier periods (if any) were allocated among the Partners (or their respective predecessors in
interest). For purposes of this provision, the term Aggregate Net Book Losses of the Partnership
means the excess (if any) of (1) the cumulative Net Book Losses of the Partnership over (2) the
cumulative Net Book Profits of the Partnership.
(ii) Any remaining Net Book Profits for any period shall then be allocated
among the Partners pro rata in proportion to each Partner's respective Participating Percentage.
Co) Allocation of Net Book Losses.
(i) Net Book Losses for any period shall first be allocated in the same
amounts and in the same proportions as the Aggregate Net Book Profits for all earlier periods (if
13
any) were allocated among the Partners (or their respective predecessors in interest). For
purposes of this provision, the term Aggregate Net Book Profits of the Partnership means the
excess (if any) of(l) the cumulative Net Book Profits of the Partnership over (2) the cumulative
Net Book Losses of the Partnership.
(ii) Any rem aining Net Book Losses for any period shall be allocated among
the Partners pro rata in proportion to each Partner's respective Participating Percentage.
Section 8.5. Allocations to Comply With Applicable Treasury Regulations. In order
to comply with the provisions of applicable Treasury Regulations, including Treasury Regulation
Section 1.704-2, the following special allocations of income, gain> loss and expense shall be made
notwithstanding any other provision of this Agreement.
(a) Deficit Capital Account Allocations. Subject to the remaining provisions of this
Section, in accordance with applicable Treasury Regulations, including Treasury Regulation
Section 1.704-1co)(2)0i)(d), no allocation of expenses or losses shall be made pursuant to the
terms of this Agreement to the extent such allocation would cause or increase a net deficit
balance in a. Part~er's Capital Account as of the end of the period to which such allocation relates
in excess of any dollar mount of such net deficit balance that such Partner is obligated to restore
under this Agreement. Such expenses and losses shall instead be allocated among the other
Partners not subject to this limitation in accordance with their relative Participating Percentages.
For purposes of this paragraph (a), the following rules shall apply:
(i) each Partner's net deficit balance in such Parmer's respective Capital
Account shall be determined by adding to such Capital Account balance the amount of such
Partner's share (as determined pursuant to Treasury Regulation Section 1.704-2) of the Total
Minimum Gain of the Partnership as of the end of the period with respect to which such
determination is being made; and
(ii) in determining whether an allocation of loss or expense would cause or
increase a net deficit balance in a Partner's respective Capital Account as of the end of the period
to which such allocation relates, the initial balance in such Partner's respective Capital Account
shall be treated as if it reflected an amount equal to the excess of any distributions that, as of the
end of such period, reasonably are expected to be made to such Partner in any future period over
the Net Book Profits reasonably expected to be allocated to such Partner during (or prior to) the
period in which such distributions are expected to be made.
Co) Qualified Income Offset Provision. If a Partner unexpectedly receives an
adjustment, allocation or distribution pursuant to this Agreement wh/ch causes or increases a net
deficit balance in such Partner's respective Capital Account as of the end of the period to which
such adjustment, allocation or distribution relates in excess of any dollar amount of such net
deficit balance that such Partner is obligated to restore pursuant to this Agreement, such Partner
will be allocated items of gross income and gain in an amount and manner sufficient to eliminate
such net deficit balance as quickly as possible. The roles set forth in subparagraph (a)(i) and
(a)(ii) of this Section shall apply for purposes of determining whether any adjustment, allocation
or distribution would cause or increase a net deficit balance in any Partner's Capital Account.
14
(c) Special Allocations of Nonrecourse Deductions. Notwithstanding any other
provision in this Agreement, in compliance with applicable Treasury Regulations, .including
Treasury Regulation Section 1.704-2, allocations of Nonrecourse Deductions shall be made among
the Partners in accordance with the Participating Percentages of the Parmers.
(d) Minimum Gain Chargebaek Provision. If there ia a net decrease in. the
M~n~m,,m Gain of the Partnership (as determined pursuant to applicable Treasury Regulations,
including Treasury Regulation Section 1.704-2(0) during any period, then each Partner shall be
allocated items of gross income and gain in accordance with the provisions of applicable Treasury
Regulations, including Treasmy Regulation Section 1.704-2(f).
(e) Special Allocations of Partner Nonrecourse Deductions. Notwithstanding any
other provision in thin Agreement, in compliance with applicable Treasury Regulations, including
Treasury Regulation Section 1.704-2(i)(1), allocations of Partaer Nonrecourse Deductions shall
be made among the Partners in accordance with the ratios in which the Partners (or the Affiliates
of any Partners) share the economic risk of loss with respect to the Partner Nonrecourse
Liabilities to which such Part.er Nonrecourse Deductions are attributable (determined in
accordance with the provisions of applicable Treasury Regulations, includln$ Treasury Regulation
Section 1.752-2(a)).
(f) Partner Nonrecourse Liability Minimum Gain Chargeback Provision. If there
is a net decrease in the Partner Nonrecourse Liability Minimum Gain (as determined pursuant to
applicable Treasury Regulations; including Treasury Regulation Section 1.704-20)) during any
period, then each Partner shall be allocated items of income and gain in accordance with the
provisions of applicable Treasury Regulations, including Treasury Regulation Section 1.704-
2(i)(3).
(g) Subsequent Allocations. Any special allocations of items of income, gain~ loss
or expense made pursuant to this Section shall be taken into account in computing subsequent
allocations of income, gain, loss and expense pursuant to this Agreement, so that the net amount
of any item of income, gain, loss and expense allocated to each Parmer pursuant to this
Agreement shall, to the extent possible, be equal to the amount of such items of income, gain,
loss and expense that would have been allocated to such Partner pursuant to tkis Agreement if
the special allocations of income, gain, toss or expense required by ttds Section had not been
made.
(h) Interpretation of these Provisions. The provisions oftlfis Section are intended
to comply with the provisions of applicable Treasury Regulations, including Treasury Regulation
Sections 1.704-1(b)(2) and 1.704-2, and shall be interpreted ennsistently therewith.
Section 8.6. Federal Income Tax Allocations. The allocations of income, gain, loss and
expense made pursuant to the previous Sections are allocations of book income which are made
for aecoanting purposes to determine the respective balances in the Capital Accounts of the
Partners and to establish the rights of the Partners among themselves with respect to the assets
of the Partnership. These allocations may be different fi'om the allocations among the Partners
of the income, gain, loss, deduction, tax preference mad tax credits of the Partnership for Federal
income tax purposes. Allocations of income, gain, loss, deduction, tax preference and tax credits
15
of the Partnership for Federal income tax purposes for each taxable year shall be made among
the Partners as follows:
(a) General Rules Regarding Allocations of Income, Loss, Etc. In general, for
Federal income tax purposes, all items of income, gain, loss, deduction and tax preference of the
Partnership for each taxable year shall be allocated among the Partner~ in the same manner as
the items of income, gain~ loss and expense which gave rise to such items of income, gain, loss,
deduction and tax preference for Federal income tax purposes are allocated among the Partners
pursuant to the terms of this Agreement
(b) Special Rules Where Tax Basis Differs From Book Value. If the Parmershlp's
adjusted tax basis for Federal income tax purposes of any of its property differs ~om the Book
Value of such property at the beginning of any taxable year, in determining each Partner's
distributive share of the taxable income or loss (or items thereof) of the Partnership, each item
of income, gain, loss or deduction with respect to such property shall be allocated among the
Parmers in such a manner as will take into aeenunt (as required by Code Section 704(c) and any
applicable Treasmy Regulations thereunder or by other applicable Treasury Regulations, including
Treasury Regulation Section 1.704-1(b)(4)(i)) the difference between the adjusted tax basis for
Federal ine0me tax purposes of such property ~d its Book Value, all as of the beginning of such
taxable year.
Section 8.7. Allocation of Taxable Income and Loss and Tax Credits on the Transfer
of a Partnership Interest. The items of income, gain, loss, expense, deduction, tax preference
and/or tax credit allocable under the terms of this Agreement to any interest in the Partnership
which may have been transferred during any period shall be allocated among the Persons who
were the holders of such interest during such period in a manner which takes into account the
varying interests of the Partners in the Partnership during such period, all in accordance with any
Treasury Regulations promulgated under Code Section 706(d); provided, that the allocation of
gain or loss on the disposition of any property in which the Partnership has a direct or indirect
interest shall, to the extent not prohibited under such regulations, be allocated among the Partners
who are Partners in the Partnership on the date the event giving rise to such gain or loss occurs
in accordance with the provisions of this Agreement otherwise dealing with Federal income tax
allocations.
Section 8.8. Special Tax Audit Allocations. Notwithstanding anything contained in this
Agreement to the contrary, in the event that the taxable income of the Partnership for Federal
income tax purposes (or any item thereof) is adjusted as the result of an audit by the Internal
Revenue Service, the Partners' Capital Accounts shall be adjusted in a manner which reflects such
adjustments as though corresponding book adjustments had been originally reflected in the Net
Book Profits or Net Book Losses of the Partnership determined pursuant to the terms of this
Agreement.
Section 8.9. Interest. If, pursuant to applicable law, a portion of the amounts paid on
any Partner notes issued with respect to capital contributions to the Partnership shall be deemed
to constitute interest rather than principal for Federal income tax purposes, the interest income
attributable thereto shall be allocated to the Partners who shall have made such deemed interest
payments on such Partner notes; and the amount of such interest income shall be taken into
16
account in determining the amount of capital contributions made by such Partner to the Part-
nership.
Section 8.1/1. Credits. Ail investment tax credits, targeted job credits and other tax
credits available to the Partnership shall, subject to applicable Treasury Regulations and pro-
visions of the Code, be allocated among the Pariners in proportion to 'each Partner's respective
Participating Percentage. '
ARTICLE IX - BOOKS OF ACCOUNT, RECORDS AND REPORTS
Section 9.1. Books and Records. Proper and complete records and books of account
shall be kept by the Partaerahip. The Partnership book~ and records shall be kept on the cash
method of accounting or on such other acceptable method as the General Partner shall determine.
The books and records shall at all times be maintained at the principal office of the Partnership
and shall be open to the reasonable inspection and examination of the Partners or their duly
authorized representatives during normal business hours.
Section 9.2. Tax Information. As soon as available after the end of each fiscal year of
the Partnership, the General Partner shall send or cause to be sent to each Partner such tax
information as shall be necessary for the preparation by such Partner of his, her or its Federal
income tax rem, state income tax return and other tax returns. The Partners acknowledge that
because of the nature of the Pasmership, it may be difficult or impossible accurately to set forth
on Form K-1. and other tax forms which the Pa_rmership may file end/or provide to the Partners
the actual interests of the Partners in the Partaership's income, losses and capital. The Partners
agree among themselves that no information on any such form will be evidence of the true inter-
est in the Partnership of any Partner.
Section 9.3. Annual Reports. As soon as available after the end of each fiscal year, the
General Partner shall cause to be prepared and transmitted to each Partner a report containing
(i) a balance sheet of the Partnership showing the financial condition of the Parmership at the
close of such year; (ii) a statement of income of the Partnership showing the results of operafiom
during such year; (iii) a cash flow statement of the Partnership showing the cash receipts and
disbursements of the Partnership during such year; (iv) a statement showing each Partner's share
of the profits or losses of the Partnership for such year for Federal income tax purposes; and (v)
such other financial information as the General Partner deems appropriate.
Section 9.4. Accounting Principles. Except as othenvise provided in this Agreement,
all books and records of the Partnership shall be kept, and all financial statements furnished to
the Parmers hereunder shall be prepared, in accordance with sound and generally accepted
accounting principles consistently applied.
ARTICLE X - FISCAL YEAR
Section 10.1. Fiscal Year. The fiscal year of the Partnership shall end on December 31
of each year.
17
ARTICLE XI - LIABILITY OF GENERAL PARTNER;
EXCULPATION; INDEMNIFICATION; REIMBURSEMENT
Section 11.1. Liability of General Partner. To the extent that assets of the Partnership
are insufficient to satisfy uny und ail of the Partnership's liabihties, the General Partner shall bear
such liability and, fit. here is ever more than one General Partner, any su6h liabihty shail be borne
equally by all such General Partners.
Section 11.2. Exculpation. The Generai Partner shall not be liable to the Partnership
or any other Partner for losses or liability arising from the conduct of the affairs of the Part-
nership or from the conduct of an employee or agent of the General Partner or the Partnership,
so long as such losses or liability do not arise fi-om the gross negligence, willful misconduct or
fraud of the General Partner.
Section 11.3. Indemnfficafion. The General Partner shall be indemnified by the
Partnership (but not by uny Limited Parmer) agaimt any losses, judgments, claim.q and/or liab'ffi-
ties (including expenses actually incurred by the General Partner, attorneys' fees actually incurred
by the General Partner und amounts actually paid by the Generai Partner in settlement of any
claim incurred or sustained by the General Psi'mcr) in connection with any action, suit or pro-
ceeding (other than un action, suit or proceeding by or in the right of a Limited Part~er or the
Partnership) threatened, pe~dlng or completed to which the General Partner is a party or threat-
ened to be made a party by reason of the performance of the General Partner's duties under und
in accordance.with this Agreement, provided that with respect to the matter for which indemnifi-
cation is sought, the General Partner acted (or refrained from acting) in a manner that the General
Parmer und/or the General Partner's agents believed in good faith was in the best interests of the
Parmership, and in a case involving a criminal proceeding, the Generai Partner had no reasonable
cause to believe that the General Partner's actions (or the actions of the General Partner's agents)
constituted unlawful conduct.
Section 11.4. Reimbursement. The General Partner shall be entitled to current
reimbursement out of Partnership funds for all costs und expenses reasonably incurred to third
parties while acting on behalf of the Partnership in acenrdunee with this Agreement. In addition,
the General Partner will be expected to provide the Partnership with munagement services,
including by ennlractual arrangements with third parties. The General Partner shail be reimbursed
on a current basis for the reasonable actuai costs of such management services, personnel costs
(including, without limitation, an allocable share of ail fringe benefits and employment taxes),
out-of-pocket disbursements, and an allocable share of the General Parmer's overhead (including,
inter alia, office rent, office expenses, telephone, utilities, sales and travel expenses, but excluding
any profit element).
ARTICLE XII - RIGHTS AND LIMITATIONS OF
LIMITED PARTNERS; MEETINGS; AMENDMENTS
Section 12.1. Limited Assessment. Except as provided in this Agreement, no Limited
Partner shall be subject to assessment nor shall any Limited Partner be personally liable for, or
bound by, any expenses, liabilities or obligations of the Par~ership beyond such Limited
Partner's capital contribution.
18
Section 12.2. No Right to Manage. Except as specifically provided/n this Agreement,
the Limited Partners shall take no part in, or interfere in any manner with, the management,
control, conduct or operation of the Partnership, nor have any right, power or authority to act for
or bind the Partnership.
Section 12.3. Priority. No Limited Partner shall have priority' over any other Limited
Partner either as to the return of capital contributions or any other distributions from the
Partnership, unless othenvise specifically provided herein.
Section 12.4. Death, Disability, Etc. of a l,imlted Partner. The Partnership shall not
be dissolved by (i) the death, disability, insanity, adjudication of incompetence, bankruptcy,
insolvency or withdrawal of any Limited Partner, (ii) the assi~n~ment by any Limited Partner of
his interest in the Partnership, or (iii) the admission of a Substitute Limited Parmer.
Section 12.5. Meetings.
(a) Place of Meetings. Meetings of Partners may be held in such place within or
without the Commonwealth of Pennnylvania as may be specified in the notice of such meeting.
(b) Call of Meetings. A meeting of the Partners for any matters on which the Limited
Partners are entitled to vote or consent may be called by thc written notice of the General Partner
or by the written notice of the Limited Partners holding fifty percent (50%) or more of the then
outstanding Units.
(i) Written notification of such meeting shall be issued by the General
Parmer no later than ten (10) days before the date of such meeting. Any such notice shall state
the purpose of the proposed meeting and the matters proposed to be acted upon thereat. Meetings
shall be held at the principal office of the Parmership or at such other plac~ as may be designated
by the General partner, or by means of any telecommunications system. Such meetings shall be
held on a date not less than fifteen (15) days nor more than sixty 050) days after the receipt by
the General Partner of a written request for such a meeting signed by Limited Partners holding
fifty percent (50%) or more of the then outstanding Units. In addition, the General Partner may,
and upon receipt of a request in writing signed by the holders of fifty percent (50%) or more of
the then outstanding Units shall, submit any matter upon which the Limited Partners are entitled
to vote to the Limited Partners for a vote by written consent without a meeting (including,
without limitation, for the purpose of proposing an amendment to the Partnership Agreement).
The affirmative vote of the holders of two-thirds (2/3) of the then outstanding Units shall be
required for the approval of any matter submitted for a vote of the Limited Partners.
(ii) NotificatiOn of any meeting to be held pursuant to this Section shall be
given to each Limited Partner at such Limited Partner's record address or at such other address
which such Limited Partner may have furnished in writing to the General Partner. Such notifica-
tion shall state the place, date and hour of the meeting and shall indicate that the notification is
being issued at or by the direction of the Parmer or Parmers calling the meeting. The notification
shall state the purpose or purposes of the meeting. If a meeting is adjourned to another time or
place, the General Partner shall give notification of the adjourned meeting. The presence in per-
son or by proxy of the holders of two-thirds of the then outstanding Units shall constitute a
19
quorum at all meetings of the Limited Parmer~; provided, however, that if there be no such
quorum, holders of a majority of the Units preseut or represented by proxy may adjourn the
meeting from time to time, until a quorum shal! have been obtained. No notification of the time,
place or purpose of any meeting of Limited Partners need be given to any Limited Partner who
attends in person or is represented by proxy, except for a Limited Partner attending a meeting for
the express purpose of disapproving at the beginning of the meeting fo the transaction of any
business on the grounds that the meeting is not lawfully called or convened, or to any Limited
Partner entitled to such notification who, in writing, executed and filed with the records of the
meeting, either before or after the time thereof, waives such notification.
(iii) For the purpose of determining the Limited Partners entitled to vote on,
or to vote at, any meeting of the Limited Pax'mers, or any adjournment thereof, or to vote by
written consent without a meeting, the General Partner or the Limited Partners requesting such
meeting or vote may fix, in advance, a date as the record date of any such determination of Lim-
ited Partners. Such date shall not be more than fifty (50) days nor less than ten (10) days before
any such meeting or submission of a matter to the Limited Partners for a vote by written consent.
(iv) At each meeting of Limited Partners, the Limited Partners present or
represented 'by proxy shall elect such officers and adopt such rules for the conduct of such meet-
lng as they shall deem appropriate.
Section 12.6. Voting Rights of Limited Partners.
(a) Limited Parmers holding two-thirds (2/3) of the then outstanding Units may:
(i) subject to compliance with Subsection 12.7(b) below, approve the
amendment of this Agreement, subject to the conditions that such amendment (1) may not in any
manner allow the Limited Partners to take part in the control of the Partnership's business or
otherwise modify their limited liability, and (2) may not change the interest of any Parmer in the
capital, profits, losses or cash distributions of the Partnership or amend or modify the provisions
of this Agreement dealing with disttibutions of Positive Cash Flow, liquidation distributions
and/or amendments to this Agreement, without the written consent of each Partner affected
thereby;
(ii) approve the removal of any General Partner for cause, subject to the
provisions set forth in this Agreement dealing with the removal of a General Partner;
(iii) propose and approve a successor General Partner, subject to the provi-
sions set forth in this Agreement dealing with the admission of a successor General Partner; and
(iv) subject to compliance with Subsection 15.1(b) below, propose and
approve the dissolution of the Partoership.
(b) A Limited Partner shall be entitled to cast one vote for each Unit which such
Limited Partner owns (i) at a meeting, in person, by written proxy or by a signed writing
directing the manner in which such Limited Partner desires that such Limited Partner's vote be
cast, which writing must be received by the General Partner prior to such meeting, or (ii) without
20
a meeting, by a signed writing directing the manner in which such Limited Partner desires that
.such Limited Partner's vote be cast, which writing must be received by the General Partner prior
to the date upon which the votes of the Limited Par~ers are to be counted. Every proxy must
be signed by the Limited Partner or such Limited Partner's attorney-in-fact. No proxy shall be
valid after the expiration of 12 months from the date thereof unless otherwise provided in the
proxy. Every proxy shall be revocable at the pleasure of the Limited P~-l~er executing it. Only
the votes of Limited Partners of record on the notification date or such other record date as may
be set pursuant tO the terms of this Agreement, whether at a meeting or otherwise, shall be
counted. In connection with any such vote, the General Partner shall be empowered to establish
reasonable rules pertoinlng to the validity and use of proxies by the Limited Partners. Fractional
Units shall not be counted for purposes of any vote taken pursuant to this Agreement or
applicable law.
Section 12.7. Proposal and Adoption of Amendments Generally.
(a) Amendments to this Agreement may be proposed in the following manner:
(i)
by the General Partner, who shall give to the Limited Partners:
(1) the text of such proposed amendment;
(2) a statement of the purpose of such amendment; and
(3) an opinion of counsel obtained by the General Partner to the effect
that such amendment is permitted by the Partnership Act, will not impair the limited liability of
any Limited Partner und will not adversely affect the classification of or cause a termination of
the Par'mership as a partnership for Federal income tax purposes; or
(ii) by a Limited Pamer or Partners holding more than fifty percent (50%)
of the then outstanding Units, who shah submit to the General Pamer the text of such proposed
amendment, together with a statement of the purpose of such amendment and an opinion from
counsel obtained by such Limited Partxter or Partners, satisfactory in form and substance to
counael for the Partnership, to the effect that such amendment is permitted by the .Partnership
Act, will not impair the limited liability of the Limited Partners and will not adversely affect the
classification or cause the termination of the Partnership as a partnership for Federal income tax
purposes. The General Partner shall, within twenty (20) days after receipt of any proposal under
this clause (ii), give to all Limited Partners the text of such proposed amendment, such statement
of purpose and such opinion of counsel, together with the views, if any, of the General Partner
with respect to such proposed amendment.
(b) Amendments proposed pursuant to this Section shall be adopted if consented to
by the General Partner and by Limited Partners owning two-thirds (2/3) of the then outstanding
Un/ts.
(c) The General Partner shall, within a reasonable time after the adoption of any
amendment to this Agreement, make any official filings, recordings and publications required or
21
desirable to reflect such amendment, including any required filing or recordation of an amended
certificate of 1lin{ted partnership of the Partnership.
Section 12.8. Limitations on Amendments. Notwithstanding any other provision of this
Agreement, no amendment to tb/s Agreement may:
(a) Without the consent of such affected Partner, enlarge the obligations of any Partner
under this Agreement or convert the interest of any Limited Partner into the interest of a General
Partner;
(b) Allow the Limited Parmers to take part in the conlrol of the Partnership's business
or otherwise modify the then limited liability of any Limited Partner;
(c) Create any additional class of Partnership interest;
(d) Modify the order and method provided herein for allocations of profits and losses
and distributions of Positive Cash Flow or the proceeds from the liquidation of the Partnership,
without the consent of each Partner adversely affected by such modification; or
(e) Amend the provisions of this Agreement dealing with making amendments to this
Agreement without the consent of all Partners.
Section 12.9. Amendments on Admission or Withdrawal of Partners.
(a) Amendments to admit additional Limited Partners and Substitute l.lmited Partners
shall be adopted if the conditions specified in this Agreement regarding the admission of such
Partners shall have been satisfactorily complied with and the amendment shall have been signed
by the General Partner and by the Person to be substituted or added, and, if a Limited Partner
is to be substituted, by the assi~m~ing Limited Partner or such Limited Partner's attorney-in-fact.
Co) Amendments to reflect the admission and/or designation of a successor General
Partner shall be adopted if the conditions specified in this Agreement regarding the admission
and/or designation of such a Partner shall have been satisfactorily completed and the amendment
shall have been signed by such successor General Partner.
(c) Amendments for the removal or withdrawal of a General Partner, if the business
of the Partnership is continued, shall be adopted if the conditions specified in this Agreement
dealing with such removal or withdrawal of a General Partner shall have been satisfactorily
completed and the amendment shall have been signed by the remaining General Parmer(s) or the
successor General Partner.
ARTICLE Xlll - TRANSFERS BY LIMITED
PARTNERS; REPURCHASE OF INTERESTS
Section 13.1. Prohibited Transfers. No Limited Partner may transfer all or any part
of his or its respective interest in the Partnership without the express written consent of the
22
General Partner, which consent may be withheld at the complete discretion of the General
Partner.
Section 13.2. Compliance with Securities Laws. No Partnership interest has been
registered under the Securities Act of 1933, as mended, or under any state securities law. A
Limited Partner may not transfer all or any part of his, her or its Part~iership interest except in
compliance with applicable Federal and state securities laws. A transfer, for purposes of this
Agreement, shall be deemed to include, but not be limited to, any sale, transfer, assi~m~ment,
pledge, creation of a security interest or other disposition. The General Par'mcr shall have no
obligation to register any Limited Partner's interest under the Securities Act of 1933, as mended,
or the securities laws of uny state, or to make any exemption therefrom available to any Limited
Partner or Substitute Limited Partner. Any certificates or other documents representing the Units
may bear a legend outlining the above res~icfions on transfer. Further, the Partnership will make
notations on its records of the foregoing restrictions on transfer. If a transfer agent is ever
appointed, the Partnership will issue appropriate stop-transfer instructions to its transfer agent
respecting the limitations on transfer outlined herein.
Section 13.3. Transfer. A Limited Partner's interest in the Partnership may not be
transfen-ed in whole or m part unless, in additi6n to satisfaction of the conditions in Sections 13.1
and 13.4, the transferor has, if requested by the General Partner, furnished the Partnership with
evidence acceptable to the General Partner that such transfer complies with applicable Federal
and state securities laws and this Agreement and does not cause a termination of the Partnership
under Section. 708 of the Code. Transfers will be recognized by the Partnership effective the first
or sixteenth day of the calendar month during which the above conditions are satisfied. Any
transfer in contravention of this Article shall be void and ineffectual and shall not bind the
Partnership.
Section 13.4. Admission of Substitute Limited Partner. Except as specifically
provided in this Agreement, unless the General Partner othenvise consents thereto, a transferee
of a Unit shall become a Substitute Limited Partner only after the transferee:
(a) Adopts and approves in writing all the terms and provisions of this Agreement then
in effect; and
(b) Assumes the obligations, if any, of the transferor to the Partnership.
A Substitute Limited Partner is liable for the obligations of such Substitute Limited Partner's
assignor to make contributions as Provided in and under this Agreement.
Section 13.5. Status of Transferee, A nonarlmitted transferee of a Unit or other interest
in the Partnership of a Limited Partner shall be entitled to receive only that share of distributions
to which his or its transferor would otherwise be entitled with respect to the Units transferred,
and shall have no right to obtain any information on account of the Partnership's transactions,
to inspect the Partnership books or to vote with the Limited Partners on any matter. The Partner-
ship may, however, in the discretion of the General Partner furnish the transferee with pertinent
tax information at the end of each fiscal year of the Partnership.
23
Section 13.6. Election to Treat Transferee as a Partner, The General Partner may
elect to treat a transferee of a Parmership interest who has not become a Substitute Limited
Partner as a Substitute Limited Pacmer in the place of its transferor should the General Partner,
in its absolute discretion, deem that such treatment is in the best interest of the Partnership.
Section 13.7. Death, Bankruptcy, Incompetence, Etc. of a Limited Partner. Upon
the death, dissolution, adjudication of bankruptcy, insanity or adjudication of incompetence of a
Limited Partner, such Partner's executors, aflmlnistrators or legal representatives shall have all
the rights of a Limited Parmer, for the purpose of settling or managing such Partner's estate,
including such power as such Limited Partner possessed to constitute a successor as a transferee
of his or its interest in the Pamership and to join with such trannferee in making the application
to substitute such transferee as a Partner; provided, however, that the remaining Limited Partners
shall have the fight, but not the obligation, pro rata, to acquire such ]'.imlted Partner's interest in
the Partnership upon payment of the Partnership Interest Valuation of such interest. Executors,
administrators or legal representatives of a Parmer will not have the right to become Substitute
Limited Partners in the place of their predecessor in interest except to the extent provided in
Section 13.1 or unless the General Parmer shall so consent. The provisions of this Section 13.7
shall not apply to an interest held by two limited parmers as joint tenants with right of
sun4vorship.
Section 13.8. Transferee(s). Any transfer, bequest or gift of an interest in the
Partnership hereunder is conditioned upon the transferee(s) (or, in the case of a trust, the
trustee(s)) being suijuris and mentally competent.
Section 13.9. Tax Elections. In the event of the transfer of any interest in the
Partnership or the distribution of property to any Partner, the Partnership may, at the determina-
tion of the General Partner, file an election under Code Section 754 to eanse the basis of the
Partnership's assets to be adjusted for Federal income tax purposes as provided by Code Sections
734 and 743.
Section 13.10. Admission of Additional Limited Partners. Additional Limited Pax'mers
may be admitted to the Partnership fi.om time to time with the consent of the General Pro-'mcr.
No Person shall be admitted as an additional Limited Partner puxsuant to this Section until:
(a) Such Person shall have agreed to be bound by the terms and provisions of this
Agreement and shall have assumed all of the obligations, if any, of a Limited Par~er;
Co) Such Person shall have executed this Agreement (or an addendum hereto) and such
other documents or instnunents, and contributed such capital, as the General Partner and the
Limited Partners may require in order to effect the admission of such Person as a Partner;
(c) Such Person shall have executed powers of attomey containing the terms and
conditions set forth in the power of attorney provisions of this Agreement; and
(d) Such Person shall have delivered to the Partnership a letter containing such
representations and agreements as are otherwise set forth in this Agreement and as are requested
by the General Partner.
24
ARTICLE XIV - CHANGES TO ~ GENERAL PARTNER
Section 14.1. Removal of the General Partner.
(a) Limited Parmers holding more than fif~ percent (50%) of the then outstanding
Units held by Limited Partners (excluding any such units held by the G~neral Partner whom the
Limited Partners, or any of them, seek to remove), by written notice to the General Partner, may
call a meeting for the purpose of removing a General Partner for subjecting the Parlnership to
an action for, or otherwise injuring the Partnership as a result, of, such General Partner's (A)
gross negligence whleh results in a material un/~ured loss to the Partnership, (B) breach of
fiduciary duty, (C) fraud, willfni mlsoenduct or any grossly negligent conduct in the performance
of such General Partner's duties as General Partner, or (D) breach of any material representation
or warranty contained in this Agreement. Such notice shall be given to all Partners, including the
General Partner, not less than thirty (30) days prior to the date set for such meeting, and shall
set forth in reasonable detail the event of dissolution or the allegedly improper conduct. If
Limited Partners (other than the General Par~er sought to be removed) holding all of the then
outstanding Units held by Partners (other than units held by the General Partner sought to be
removed) vote at such meeting to remove a General Partner, such General Palmer shall have
seven (7) days in which to object to aneh rem6val by written notice to the Limited Partners. If
the General Partner does not object within such seven (7) day period, the removal shah be
effective as of the expiration of such period. If the General Partner objects, such objection shall
be in the form of a Claim Statement under the arbitration provisions of this Agreement, and the
removal shall be determined by binding arbitration in accordance with the arbitration provisions
of this Agreement.
Co) Upon the removal of a General Partner pursuant to this Section, the General
Partner shall become Special Limited Parmer and as such will not have any right to participate
in the management of the affairs of the Partnership. Such Special Limited Partner shall not share
in any tights or interests given to the Limited Partners. Instead, such Special Limited Partner
shall retain its share of the net profits or net losses, cash flow, and capital interest which are allo-
cated to such General Partner as if it remained the General Partner of the Partnership. Neither
the removed General Partner nor any affiliate of the removed General Partner shall be entitled
to receive any fees under this Agreement following such removal.
(c) Notwithstanding anything contained herein, the remaining General Partner(s) and
if no such remaining General Part~er then the Limited Partners, pro rata, followed by any
successor General Partner proposed by them, shall have the option, but not the obligation, to
acquire all of the interest in the Partnership of any General Partner removed pursuant to this
Section upon payment of the Partnership Interest Valuation of such interest; provided that in the
event of such a purchase the remaining General Partner(s), the Limited Partners or any successor
General Partner proposed by them, as the case may be, shall (i) deduct fi-om such Partnership
Interest Valuation mount the amount necessary to offset the amount of uny damages suffered
by the Partnership as a result of any material breach of the obligations of such General Partner
hereunder, and (ii) pay such deducted amount to the Partnership.
Section 14.2. Withdrawal. Any General Partner may unilaterally withdraw as a General
Parmer of the Partnership at any time by giving thirty (30) days' written notice of its intent to
25
withdraw as such General Partner to the other General Partner(s), if any, and to all of the then
current Limited Partners, provided that such withdrawal does not affect the status for Federal
income tax purposes of the Partnership or otherwise materially adversely affect the Limited
Partners. Upon the withdrawal of a General Partner pursuant to the provisions of this Section,
the interests in the Partnership of such General Panner shall convert to that of Special Limited
Partner as though the General Partner had been removed as the General Partner of the Partnership
pursuant to the immediately preceding Section, with the remaining General Partner(s), if any, the
Limited Parmers and any successor General Partner having the purchase fights set forth in such
Section.
Section 14.3. Transfer of Interest. Except as otherwise provided herein, a General
Pamer may not assign, ~'ansfer, mortgage or sell any portion of its interest in the Partnership,
or enter into any agreement as the result of which any Person shall become interested in the
Partnership, without the consent of Limited Par~ers holding two-thi~ds (2/3) of the then outstand-
ing Units; provided, however, this Section shall not apply to a sale, transfer or assignment pur-
suant to a removal of a General Partner in accordance with this Article. A transferee of a
General Partner's interest in the Partnership shall not thereby become a General Partner without
the consent Of Limited Pamers holding two-thirds (2/3) of the then outstanding Units.
Section 14.4. Continuing Liability. No removal or withdrawal under this Article shall
relieve a General Partner of any then existing obligation owing by that General Partner to the
Partnership or any Partner nor shall it constitute a waiver of any claim the Partnership or any
Parmer may have against the removed General Partner. In the event a General partner withdraws
from the Partnership or sells, transfers or assigns its entire interest pursuant to this Article, such
General Partner shall be, and shall remain, liable for all obligations and liabilities incurred by the
General Partner and the Partnership prior to the effective date of such occurrence and shall be
free of any obligation or liability incurred on account of the activities of the Partnership after
such time.
Section 14.5. Admission of Successor General Panner. The Limited Partners may,
aider the removal or withdrawal of the General Partner as the General Partner of the Partnership,
but only if there is/are no remaining General Partner(s), designate a successor Person to be the
General Panner. Such Person shall become the successor General Partner only upon meeting
the following conditions:
(a) The admission of such Person shall have been consented to by Limited Partners
holding two-thirds (2/3) of the then outstanding Units;
(b) If the designated Person is a corporation or other entity, it shall have provided the
Partnership with evidence satisfactory to counsel for the Partnership of its authority to become
the General Partner;
(c) Counsel for the Partuership, at the expense of the Partnership, shall have rendered
an opinion that the admission of the designated Person is in conformity with the Partnership Act
and that none of the actions taken in connection with the admission of the designated Person will
cause the termination or dissolution of the Partnership or will cause it to be classified other than
as a Partnership for Federal income tax purposes; and
26
(d) Any required or appropriate amendments and filings required under the Partnership
Act shall have been properly performed.
Section 14.6. Effect of Bankruptcy, Dissolution, Etc. of the General Partner. Upon
the happening of any of the following events, a General Partner shall immediately cease to be
a General Parmer of the Parmership, and its interest as such General Parmer shall immediately
become that cfa Special Limited Partner subject to all of the tee'ms and conditions set forth above
in this Article regarding the conversion of the General Partner into Special Limited Partner,
including the right of the remaining General Parmer(s), the Limited Partners or any successor
General Partner to purchase such interest for an amount equal to the Partnership Interest
Valuation of such interest:
(a) the filing of a petition of bankruptcy with respect to such General Partner, the
same not being discharged within ninety (90) days from the date of such filing;
(b) a receiver being appointed to manage the prope~y of such General Partner; or
(c) a creditor of such General Partner attaching such General Partner's interest in the
Partnership 'and such attachment not being discharged or vacated w~thin, ninety (90) days fr~m
the date it became effective.
Section 14.7. Appointment of Additional General Partner. The General Partner may
appoint an additional General Partner with the consent of Limited Partners holding two-thirds
(2/3) of the then outstanding Units, provided that such appointment shall not affect the respective
economic interest in the Partnership of any Partner without such Partner's written consent.
ARTICLE XV - DISSOLUTION OF TI~F, PARTNERSI41P
Section 15.1. Events of Dissolution. The happening of any one of the following events
shall work an immediate dissolution of the Partnership:
(a) the expiration of the term of the Partnership;
(b) the election of the General Partner and affirmative vote or written consent of
Limited Partners holding two-thirds (2/3) of the then outstanding Units held by Limited Partners
to dissolve the Partnership;
(c) the termination of the business of the Partnership;
(d) the entr~ of a final judgment, order or decree of a court of competent jurisdiction
adjudicating the Partnership to be a bankrupt and the expiration of the period, if any, allowed by
applicable law in which to appeal therefxom;
(e) at the happening of any of the following events (provided, however, that (i) the
Partners may elect to continue the Partnership pursuant to the terms set forth below in this
Article, and (ii) the Parmership shall continue if there is another General Parmer of the
Partnership):
27
(i) the withdrawal of a General Partner as a General Parmer of the Partner-
ship .without the existence of any remaining General Parmer(s) or a successor General Partner.
being appointed pursuant to the terms of this Agreement;
(ii) the filing of a petition of bankruptcy with respect to any General Parmer,
the same not being discharged within ninety (90) days from the date ot' such filing;
Partner;
a receiver being appointed to manage the property of any General
(iv) a creditor of any General Partner attaching such General Partner's
interest in the Partnership and such attachment not being discharged or vacated within ninety (90)
days from the date it becomes effective; or
(v) the dissolution of a General Patmer which is an entity or the death or
legal incapacitation of a General Partner who is an individual, but only if the General Partner is
the sole General Parmer.
Section 15.2. Election to Continue the Partnership. In the event of the happening of
any of the events described in paragraph (e) of the immediately preceding Section, within one
hundred and twenty (120) days of the happening of the first of such events, the Limited Partners
may elect, upon the vote of such Limited Partners who hold two-thirds (2/3) of the then
outstanding Units, to continue the Partnership. In the event of such election, the Partnership shall
not terminate but shall continue upon the selection, by the Limited Partners holding two-thirds
(2/3) of the then outstanding Units, ora successor General Partner, which selection shall be done
concurrently with the election to continue the Partnership business.
ARTICLE XVI - ADDITIONAL PROVISIONS CONCERNING
DISSOLUTION OF THE PARTNERSmP
Section 16.1. Winding Up Affairs; Liquidation. In the event of the dissolution of the
Partnership for any reason, if no election is made pursuant to the mediately preceding Article
to continue the Partnership, the General Partner, or if the General Partner is bankrupt and without
at least one qualified successor, a liquidating agent or committee selected by the aff'n'mative vote
or written concurrence of Panners owning at least two-thirds (2/3) in value of the interests in the
Partnership owned at the time by all Partners, shall commence to wind up the affairs of the
Partnership andto liquidate its assets. Allocations of income, gain, loss, expense, deductions, tax
preference items and tax credits shall continue to be made among the Partners during the period
of liquidation in accordance with the provisions set forth above in this Agreement dealing with
such allocations. The General Partner or such liquidating agent or committee, as the case may
be, shall have the full fight and unlimited discretion to determine the time, manner and terms of
(i) any sale or sales of Partnership assets pursuant to such liquidation, having due regard to the
activity and condition of the relevant market and general financial and economic conditions, and
(ii) any in-kind liquidating distributions to Partners, so long as any nonratable distributions of
property interests result in the distributees receiving value in accordance with the terms of this
Article.
28
Section 16.2. Time for Liquidation. A reasonable time shall be allowed for the orderly
liquidation of the assets of tl?.e Partnership and the discharge of its liabilities so as to enable the
General Partner or the liquidating agent or committee, as the case may be, to minimize the
normal losses attendant upon such a liquidation.
Section 16.3. Required Reports. If requested by Parmers 6wning at least fifty-one
pement (51%) in value of the interests in the Parmership owned at the time by all Partners, the
General Partner or the liquidating agent or committee, as the case may be, shall furnish each
Partner with a statement audited and certified by a responsible firm of certified public accountants
showing (i) the net profit or net loss of the Partnership from the date of the last annual statement
submitted to the Partners pursuant to the terms of this Agreement, to the date of the final
distribution of the proceeds of the liquidation to the Partners and (ii) the manner in which the
proceeds of liquidation were distributed.
Section 16.4. Termination. The Partnership shall terminate when all property owned
by the Partnership shall have been disposed of or distributed and the net proceeds from sales of
properties, after satisfaction of liabilities to Creditors, shall have been disWibuted among the
Partners as aforesaid. The establishment of any reserves in accordance with the provisions of this
Article shall not have the effect of extevdlng the term of the Partnership.
Section 16.5. Distribution of Proceeds From the Liquidation of the Partnership. The
net proceeds of liquidation and any other funds or property of the Partnership shall be distributed
and applied to the extent available in the following order of priority:
(a) to the payment of debts and liabilities of the Parmership, including any debts and
liabilities to a Partner arising under this Agreement;
(b) to the setting up of any reserves which the General Parmer or the liquidating agent
or committee, as the ease may be, deems reasonably necessary for contingent or unforeseen
liabilities or obligations of the Partnership; and
(c) to the Partners with net positive balances in their respective Capital Accounts in
the proportion that the balance in the Capital Account of each Partner with a net positive balance
in such Partner's respective Capital Account bears to the balances in the Capital Accounts of all
Partners with net positive balances in their respective Capital Accounts.
Section 16.6. Capital Account Adjustments. For purposes of the preceding Section,
the respective balance in the Capital Account of each Partner shall be determined (i) after allo-
cating all income, gain, loss and expense of the Partnership pursuant to the terms of this
Agreement and (ii) after taking into account all prior distributions to the Partners. In addition,
if property is distributed in kind to the Partners, for purposes of the preceding Section, any
unsold Partnership property shall be valued by the General Partner or the liquidating agent or
committee, as the case may be, to determine the gain or loss which would have resulted if the
property were sold for its fair market value, and, to the extent not previously reflected in the Part-
ners' Capital Accounts, the respective balance of the Capital Account of each Partner shall be
adjusted to reflect such gain or loss that would have been allocated to such Partner if such prop-
erty had been sold at its then fair market value.
29
Section 16.7. Compliance With Treasury Regulations. In the event the Partnership
or any General Partner's interest in the Par~ership is "liquidated" within the meaning of Treasury
Regulation Section 1.704-1co)(2)(ii)(g), the following action shall be taken by the later to occur
of (i) the last day of the Parmership's taxable year in which such liquidation occurred or (ii) the
90th day following the date of such liquidation:
(a) If any'General Partner has a deficit balance in its Capital Account at the time of
the liquidation of the Partnership or the liquidation of such General Partner's interest in the
Par~ership (after giving effect to all contributions, dis~butions and allocations for all taxable
years including the year during which such liquidation occurs), such General Partner shall
contribute to the capital of the Parmership funds in an mount equal to the deficit balance in its
Capital Account. Nothing contained in this Agreement shall require any Limited Partner to
cun~ihate to the Partnership any mounts with respect to a deficit balance in such Partner's
respective Capital Account.
Co) If the Partnership is actually liquidated, distributions shall be made to the Partners
who have positive Capital Account balances in compliance with Treasury Regulation Section
1.704-1Co)(2)(ii)(b)(2).
(c) In the discretion of the General Partner or the liquidating agent or committee, as
the case may be, distributions pursuant to this Section 16.7 may be distributed to a trust of which
the General Partner or the liquidating agent or committee is the trustee (hereinafter the "Trustee")
established for the benefit of the Partners for the purposes of liquidating Partnership assets,
collecting amounts owed to the Partnership, and paying any contingent or unforeseen liabilities
or obligations of the Partnership so long as an opinion of counsel is obtained to the effect that
such trust will not be taxed as an association taxable as a corporation. The assets of any such
trust shall be distributed to the Partners from time to time, in the reasonable discretion of the
Trustee, in the same proportions as the amount distributed to such trust by the Partnership would
otherwise have been distributed to the Partners pursuant to this Agreement; and a portion or all
of such assets may be withheld by the Trustee to provide a reasonable reserve for liabilities.
ARTICLE XVII - NOTICES '
Section 17.1. Notices. All notices and demands required or permitted under this
Agreement shall be in writing and may be personally delivered or sent by certified or registered
mail, Federal Express or comparable courier service, postage or freight prepaid, to the Partners
at their addresses as shoTM from time to time on the records of the Partnership. Any Partner may
specify a different address by notifying the General Partner in writing of such different address.
Any notice personally delivered shall be effective upon the date of delivery. Any notice mailed
or sent by air courier as provided herein shall be deemed given and become effective on the
second business day following the date so sent.
ARTICLE XVHI - REPRESENTATIONS AND WARRANTIES
Section 18.1. The General Partner. As of the date hereof each of the statements in tiffs
Section shall be true, accurate and full disclosure of all facts relevant to the matters contained
30
herein, and such warranties and representati°ns shall survive the execution of this Agreement.
Each General Partner hereby represents and warrants that:
(a) There are no disputes, claim~, actions, suits or proceedings, arbitrations or
investigations, either administrative or judicial, pending or, to the knowledge of the General
Partner threatened or contemplated, against or affecting the General'Partner or the General
Partner's ability to consummate the transactions contemplated herein, at law or in equity or
otherwise, before or by any court or governmental agency or body, domestic or foreign, or before
an arbitrator of any kind. The General Parmer is not in default in respect of any judgment, order,
writ, injunction, or decree of any court or governmental agency or body, domestic or foreign, or
of an arbitrator of any kind, and the execution and delivery of this Agreement by the General
Partner and the peffonnanco by the General Partner of its obligations hereunder, will not
constitute an event of default under any agreement by which the General Partner or its properties
are bound or result in any encumbrance upon the properties or assets of the General Partner; and
Co) The General ?armer is acquiring its interest in the Partnership for investment end
without a view to the distribution thereof.
Section 18.2. Limited Partners. As of the date each Limited Partner executes this
Agreement, each of the statements made with respect to such Limited Parmer in this Section shall
be tree, accurate and full disclosure of all facts relevant to the matters contained herein, and such
warranties and representations and covenants shall survive the execution of this Agreement. Each
Limited Partner hereby represents and warrants that:
(a) Such Limited Partner is acquiring such Limited Partner's interest in the Partnership
for investment and without a view to the distribution thereof;
Co) If such Limited Parmer is not an individual, it is duly organized and validly exist-
ing under appropriate state law and has the requisite power and authority to enter into and carry
out the terms and conditions of this Agreement;
(c) All actions required to be taken by such Limited partner to consummate the
transactions contemplated by this Agreement have been taken by such Limited Partner and no
further approval of any board, court or other body is necessary in order to permit such Limited
Partner to consummate the transactions contemplated by the Agreement; and
(d) There are no disputes, claims, actions, suits or proceedings, arbitrations or
investigations, either administrative or judicial, pending or, to the knowledge of such Limited
Partner threatened or contemplated, againet or affecting such Limited Partner or such Limited
Parker's business, operations, financial condition or assets or his, her or its ability to consummate
the transactions contemplated herein, at law or in equity or otherwise, before or by any court or
governmental agency or body, domestic or foreign, or before an arbitrator of any k/nd. Such
Limited Partner is not in default in respect of any judgment, order, writ, injunction, or decree of
any court or governmental agency or body, domestic or foreign, or of an arbitrator of any kind,
and the execution and delivery of this Agreement by such Limited Partner and such Limited
Partner's performance of such Limited Partner's obligations hereunder, will not constitute an
event of default under any agreement by which such Limited Partner or such Limited Partner's
31
properties' is bound or result in any encumbrance upon the properties'or assets of such Limited
Partner.
ARTICLE XIX - MISCELLANEOUS
Section 19.1. Arbitration. Any controversy, dispute or claimuiader tlais Agreement shall
be submitted to arbitration in Harrisburg, Penn,~ylvania under the following provisions:
The aggrieved party or parties shall submit in writing to the General Partner (with a copy
to the opposing paw/or parties) a statement ("Claim Statement") describing such matter or
dispute and the resolution or relief sought and naming one qualified reputable individual w/lling
and able to act as an arbitrator. A eounterstatement ("Counterstatement") from the opposing
party or parties shall be delivered to the General Partner (with a copy to the aggrieved party(ies)
and the arbitrator named by such party(ies)) within ten (10) business days after receipt of the
Claira Statement, or the right to file the Counterstatement shall be irrevocably waived. Any
Counterstatement shall name one qualified reputable individual willing and able to act as an
arbitrator. If two arbitrators have been so appointed, the two arbitrators so appointed shall jointly
select (or cause to be selected) a third arbitrator within ten (10) business days after the date of
the CounterStatement. If three arbitrators will'decide the dispute, they (the "Arbitrators") shall
confer within ten (I0) business days after the selection or other determination of the third
arbitrator. The Arbitrators may, if they so desire and agree (or if no Counterstatement is filed,
the sole arbitrator may) invite submission of further statements or evidence, hold hearings in
Harrisburg, Pennsylvania, and/or consult outside experts for assistance in deciding such matter
or dispute, but it is the parties' intent that the Arbitrators (or sole arbitrator) reach a decision
promptly and at least by twenty (20) business days after the selection of the third arbitrator or
the failure to timely file a Counterstatement. Should any hearings be held by the Arbitrators (or
the sole arbitrator), the parties to the dispute may be present with the full right on their part to
cross-examine. Prior to the commencement of any hearings, the parties to the dispute shall each
have the fight to conduct such discovery in the manner and within the scope as is determined
by the Arbitrators (or the sole arbitrator). The majority decision of the Arbitrators (or the
decision oD. he sole arbitrator) as to each and all matter(s) or dispute(s) so submitted for decision
shall be final and binding upon all parties hereto. In resolving any matter or dispute, the
Arbitrators (or sole arbitrator) may fashion any remedy or resolution permissible at law and/or
in equity, and the parties hereby release any and all errors which may occur in such proceedings
and the Arbitrators (or sole arbitrator) from any and all liability for actions taken or omissions
made in good faith in such capacity. The parties to the dispute shall bear equally the fees of,
and expenses incurred by, the Arbitrators (or sole arbitrator) in resolving any and all such matters
and disputes. A business day shall mean any day other than Saturday, Sunday and days on which
banks in Penn.qylvanla are prohibited from doing business. Without limiting the foregoing, the
Arbitrators (or sole arbitrator) shall have all of the powers accorded to arbitrators in commercial
arbitrations under the roles of the American Arbitration Association.
Section 19.2. Purchase Details. Unless otherwise agreed to by the affected parties, if
!he interest in the Partnership of any Partner is purchased pursuant to any purchase rights set forth
m this Agreement, the following terms shall apply to such purchase transaction: (i) the total
purchase price shall be paid in cash or certified funds at the closing with respect to such
transaction and (ii) the closing with respect to such transaction shall take place within ninety (90)
32
days after the election to purchase any interest in the Partnership pursuant to the terms of this
Agreement has been finalized. Unless otherwise provided for in this Agreement or otherwise
agreed to by the affected parties, all elections to purchase any interest in the Partnership pursuant
to the t~ms of this Agreement shall be made in writing and delivered to the owner of such inter-
est within thlrty (30) days of the event which gave rise to rights in the purchaser to purchase such
interest, or such fights shall be forever waived.
Section 19.3. Certificates, Etc. At the expense of the Partnership, the General Partner
shall promptly have prepared and executed all legally required or permissible applications, regis-
trations, publications, certificates, documents, instruments, financing statements and affidavits
(and amendments thereof) for filing with the proper governmental authorities and arrange for the
proper advertisement, publication and filing thereof for record.
Section 19.4. Power of Attorney. Each Partner who is aparty hereto or executes and
delivers an addendum joining in this Agreement, hereby makes, constitutes and appoints the
General Partner, with full power of substitution, the Partner's true and lawful attorney for the
Partner and in the Parm~r's name, place and stead and for the Partner's use and benefit, to sign,
execute, certify, acknowledge, file and record any documents, financing statements or other
instruments referred to in the immediately preceding Section, or required by law, in Pennsylvania
or any other jurisdiction, of the. Partnership or the Partners, or appropriate to effectuate fully the
provisions of this Agreement;"provided, however, nothing in this Section shall be construed to
permit the General Partner to vote on any issue or provide any written consent contemplated in
tlfis Agreement to be provided or withheld by any Limited Partner. The foregoing grant of
authority shall be irrevocable and shall constitute a power coupled with an interest; provided,
however, that each Partner may revoke this power by an instrument in writing executed and
delivered to the General Partner after the dissolution and winding-up of the Partnership in
accordance with the terms of this Agreement or after the permitted assignment or transfer of the
Partner's entire interest in the Partnership.
Section 19.5. Partners' Relationship Inter Se. Nothing herein contained shall be
construed to constitute any Partner the agent of any other Partner, except as expressly provided
herein. Each Partner may, without accountability to the Partnership or to any other Partner, and
without any consent whatsoever, engage jointly and/or severally in any other business, whether
or not similar to the business of the Partnership or any of its assets.
Section 19.6. Partition Waived. The Partners agree that the Partnership property is not
and will not be suitable for partition. Accordingly, each of the Part~ers hereby irrevocably
waives any and all rights that such Partner may have to maintain any action for partition of any
of the Partnership property.
Section 19.7. Entire Agreement. This Agreement constitutes the entire agreement
among the parties with respect to the subject matter hereof. It supersedes any prior or con-
temporaneous agreement or understandings among the parties, and it may not be modified or
amended in any manner other than as set forth herein.
33
Section 19.8. Governing Law. This Agreement and the rights of the parties hereunder
shall be governed by and interpreted in accordance with the laws of the Commonwealth of
Pennsylvania without regard to its conflict of laws provisions.
Section 19.9. Binding Effect. Except as herein otherwise specifically provided, this
Agreement shall be binding upon and inure to the benefit of the part[es and their legal repre-
sentatives, heirs, administrators, executors, successors and assigns.
Section 19.10. Gender and Number. Wherever from the context it appearsappropriate,
each term stated in either the singular or the plural shall include the singular and the plural, and
pronouns stated in either the masculine, the feminine or the neuter gender shall include the
mascnline, feminine and neuter.
Section 19.11.- Captions. Captions contained in this Agreement are inserted only as a
matter of convenience and in no way define, limit or extend the scope of any provision hereof.
Section 19.12. Severance. If any provision of this Agreement or the application of such
provision to any Person or circumstance shall be held invalid, the remainder of this Agreement,
or the application of such provisions to Persons or circumstances other than those to which it is
held invalid, shall not be affected thereby~ and tlfis Agreement shall be construed so as to be
enforceable to the maximum extent allo',g&d at law or in equity.
Section 19.13. Execution of Instruments; Reliance by Third Parties. Any form of
execution onbehalf of the Partnership, including, without limitation, execution of any note, mort-
gage, evidence of indebtedness, contract or other instrument or writing, or any assignment or
endorsement thereof executed or entered into between the Parmership and any Person shall be
executed on behalf of the Partnership by at least one General Partner. Third parties dealing with
the Partnership shall be entitled to rely conclusively upon the power and authority of the General
Partner. Any Person having occasion to transact business with the Partnership or being called
upon to transfer any property, funds or value to or from the name or account of the Partnership
shall be entitled to rely on instructions, assignments or any document or instrument signed or par-
porting to be signed in accordance with this Section by a General Partner without inquiry as to
the authority of the General Partner and without inquiry as to the validity of any transfer to or
from the name or account of the Partnership. At the time of transfer, the Person shall be entitled
to assume that (i) the Partnership continues in existence under the laws of the Commonwealth
of Pennsylvania and (ii) this Agreement continues in full force and effect without amendment,
so long as such Person has received no actual notice to the contrary.
Section 19.14. Counterparts. This Agreement may be executed in several counterparts,
each of which shall be deemed an original but all of which shall constitute one and the same
instrument. In addition, this Agreement may contain more than one counterpart of the signature
page and any schedule, and this Agreement may be executed by the affixing of the signatures of
each of the Pamers to one of such counterparts. All of such counterparts shall be read as though
one, and they shall have the same force and effect as though all the signers had signed a single
page.
34
IN WITNESS WHEREOF, the undersigned have executed and delivered this Agreement
as of the date first written above.
WITNE S S/ATTESt..
GENERAL PARTNER:
MAYBELLE L. CLAYPOOL, INC.
l~ybelle L.i ~laypo°l~sident
LIMITED PARTNERS:
Claypd61, Sr.
35
WORTI~INGTON DEVELOPMENT, L.P.
EXgIRIT "A"
Capital Contributions, Participating Percentages and Units
Partners
General Partner
1. Maybelle L. Claypool, Inc.
Capital
Contributions
Participating
Percentages
Units
$ 1.00 1.0% 1.00
Limited Partners
1. Harry S. Claypool, Sr. and
Maybelle L. Claypool, JTWROS
TOTALS
99.00 99.00% 99.00
$100.00 100.00% 100
185685.1
WRITTEN CONSENT IN LIEU OF MEETING OF SHAREHOLDERS
AND DIRECTORS OF MAYBELLE L. CLAY-POOL, INC.
The undersigned, being all of the shareholders and directors ofMaybelle L.
Claypool, Inc., a Pennsylvania corporation (the "Corporation"), hereby consent to in writing and
adopt the resolutions and corporate actions set forth below with the same effect as if they had
been duly approved at formal, special meetings of the shareholders and directors of the
Corporation.
WHEREAS, the Corporation is the general partner of Worthington Development,
LP., a Pennsylvania limited partnership ("Worthington'); and
WHEREAS, the Corporation, acting in its capacity as general parmer of
Worthington, desires to approve certain matters on behalf of Worthington and to
cause Worthington to take certain actions, all as hereinafter more fully set forth.
NOW, THEREFORE, BE IT RESOLVED, that Worthington enter into a Joint
Venture Agreement (the "Joint Venture Agreement") with Claypool II~-Tiday,
LLC, a Pennsylvania limited liability company, pursuant to which the parties
thereto will cooperate with one another to develop and sell various residential lots
in Phase KI of Meadowbrook Farms located in M/ddlesex Township, Cumberland
County, Pennsylvania (the "Property");
RESOLVED FURTHER, that Worthington enter into an Open-End Mortgage
and Security Agreement (the "Mortgage") in favor of Legacy Bank, granting
Legacy Bank a mortgage on the Property in accordance with the provisions of the
Joint Venture Agreement;
RESOLVED FURTHER, that Worthington enter into a Developer's Agreement
with Middlesex Township and Claypool llI-Tiday, LLC in connection with the
Joint Venture Agreement to develop the Property.
RESOLVED FURTHER, that the Joint Venture Agreement, the Mortgage and
the Developer's Agreement shall each be in such form as is approved by the
officer executing same on behalf of the Corporation acting in its capacity as
general partner of Worthington;
RESOLVED FURTHER, that the officers of the Corporation, and any one of
them acting alone on one signature, be and hereby are authorized and directed to
negotiate, execute and dehver, in the name of and on behalf of the Corporation,
acting in its capacity as general partner of Worthington, the Joint Venture
Agreement, the Mortgage and the Developer's Agreement;
RESOLVED FURTHER, that the officers of the Corporation are each hereby
authorized to take all such actions, and to execute all such additional documents,
acting alone on one signature, as are necessary or converfient to accomplish the
foregoing; and
21, 2003.-
RESOLVED FURTHER, that all actions previously taken by the officers of the
Corporation in connection with the foregoing are hereby ratified and confirmed as
the acts of the Corporation.
IN WITNESS WttEREOF, this written consent has been executed as of August
Mayl/~lle L. Claypool,
Shareholder and Director
Cathy I. Claypool, Atto[hey in Fact for Harry S.
Claypool, Sr., and as Alternate Director pursuant to
Article 3, Section 4 of the Bylaws
JOINT VENTURE AGREEMENT
THIS JOINT VENTURE AGREEMENT is made this 2/~day of /~uc/t,~7 ,
2003 (the "Effective Date"), by and between CLAYPOOL III - TIDAY, LLC, a PennSylvania
limited liability company, having an address of 7 Bayberry Road, Carlisle, Pennsylvania 17013
("Claypool") and WORTItlNGTON DEVELOPMENT, L.P., a Pennsylvania limited
partnership, having an office at 1300 Mountain Laurel Circle, Harrisburg, Pennsylvania 17110
("Worthington").
Recitals
WHEREAS, Pamay Development Co., Inc. ("Pamay"), as Declarant, subjected an
approximate 155.9 acre tract of land located partially in Middlesex Township and partially in
North Middleton Township, Cumberland County, Permsylvania (the "Real Estate") to the
provisions of the Pennsylvania Uniform Planned Community Act, 68 Pa.C.S.A. {}5101 et seq.
(the "Act"), and established a residential planned community known as Meadowbrook Farms, a
Planned Community ("Meadowbrook");
WHEREAS, Pamay has submitted a Preliminary Subdivision Plan for
Meadowbrook to Middlesex Township (the "Township") and North Middleton Township and
such plan proposes a residential planned community consisting of a total of 216 residential
buildings lots to be built over ten (10) phases;
WHEREAS, Pamay has or is in the process of constructing and developing
Phases I and II of Meadowbrook;
WHEREAS, Pamay has submitted to the Township, a subdivision and/or land
development plan for Phase III of Meadowbrook ("Phase III"), entitled Meadowbrook Farms
Subdivision - Final P1an - Phase [II - Design Plans, prepared by Pamay's engineering and/or
surveying fn-m, PennTenra Engineering, Inc., originally dated November 22, 2000 and last
revised June 21, 2002, said plan being incorporated herein by reference (the "Plan");
WHEREAS, the Plan was conditionally approved on November 22, 2002 by all
authorities of the Township having jurisdiction, subject, however, to certain conditions, all as
more particularly outlined in that certain Developers Agreement to be entered into by and
between Claypool and the Township, a form of which is attached hereto as Exhibit "A" and
incorporated herein, all as more particularly set forth herein (the "Developers Agreement');
WHEREAS, the Plan shows various improvements which are to be constructed
within Phase HI, which improvements are further itemized and identified in a certain letter to the
Township fi:om Pamay's engineering and/or surveying firm dated November 5, 2002 and a
certain letter to the Township from the Township Engineer, Grove Associates, dated December
27, 2002, copies of both such letters are also attached hereto as Exhibit "B" and incorporated
herein by this reference and are attached to the Developers Agreement (collectively the
"Improvements");
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35/12/03/SL1 350180v3/68450.001
WHEREAS, Worthington has entered into an agreement with Pamay, pursuant to
which Pamay has agreed to sell all of the real estate constituting Phase III of Meadowbrook to
Worthington and to assign all permits, approvals and other documentation necessary for and
permitting the construction and development of Phase III of Meadowbrook, specifically
including, without limitation, the Plan (the "Pumay-WorthJngton Agreement");
WHEREAS, Pamay and Worthington desire to jointly pursue the development
and marketing of Phase III by having Claypool agree to construct the Improvements and
Worthington agree to contribute Phase III of Meadowbrook to this joint venture, all as more
particularly set forth herein.
NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained in this Agreement, the parties hereto, intending to be legally bound, agree as follows:
ARTICLE 1
Formation, Term and Assumption of Liabilities
Section 1.01 Commencement of Joint Venture. Subject to the terms and
conditions hereof, the parties agree to be bound by the terms and conditions of this Agreement as
of the Effective Date. The purpose of this Agreement is to provide for the terms and conditions
pursuant to which Claypool and Worthington will agree to develop and market Phase III of
Meadowbrook. The parties hereto agree to cooperate with one another in good faith throughout
the term of this Agreement in an effort to successfully achieve the purposes of this joint venture.
Section 1.02 Term. This Agreement shall continue until dissolved by the
mutual agreement of the parties hereto; provided, that if the parties are unable to agree after
negotiating in good faith for a period of thirty (30) days, the parties shall market and sell Phase
III in its entirety as then improved to a third party selected by mutual agreement of the parties on
such terms as are acceptable to the parties. If the parties are unable to agree on a purchaser or
the terms of such sale, any such disagreement shall be resolved by Calvin E. Zimmerman
("Zimmerman") whose determination shall be final and binding on the parties. Any termination
of this Agreement pursuant to this Section 1.02 shall be without prejudice to the right of either
party to assert any claims resulting from a breach of this Agreement by the other party.
Section 1.03 Express Agreement as to Liabilities. Except to the extent
othem, ise expressly provided for in this Agreement, neither party nor any of their respective
affiliates, have agreed to pay, will be required to assume or have any liability or obligation,
direct or indirect, absolute or contingent, of the other party hereto or any of its affiliates or any
other person.
ARTICLE 2
Contributions of Each Party
Section 2.01 Worthington's Duties. Worthington shall be required, on or before
the date of this Agreement, to close on the Pamay-Worthington Agreement, pursuant to which
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05/12/03/SLl 350180v3/68450.001
Phase III of Meadowbrook shall be granted and conveyed fi:om Pamay to Worthington and
Pamay shall have assigned to Worthington all of Pamay's rights, title and interest in and to any
and all permits, approvals and all other documentation relating to or necessary for the
development and completion of Phase III, specifically including, without limitation, the Plan
(collectively, the "Permits"). Copies of all documentation evidencing the conveyance of Phase
1/I and the assignment of all required Permits to Worthington shall be delivered to Claypool on
the Effective Date.
Thereafter, fee title to Phase III shall remain in Worthington, however, Phase III
shall be made available for sale by Worthington pursuant to this joint venture and subject to the
terms and conditions of this Agreement. Phase III shall be made available for sale pursuant to the
terms of this Agreement free and clear of all liens and encumbrances that would prohibit the
development of Phase III as provided for and pursuant to the Plan and Wo~hington agrees to be
responsible, at its sole cost and expense, to obtain a release and/or satisfaction of any lien or
encumbrance affecting the Property as of the Effective Date, or arising after the Effective Date
and resulting from the actions of Worthington, that would prohibit the development of Phase HI
as provided for and pursuant to the Plan and/or the sale of any lot located in Phase III of
Meadowbrook (each a "Lot") on or before the closing date of any such Lot. Worthington agrees
to deliver to Claypool, within fifteen (15) days of the Effective Date of this Agreement, a title
report for Phase III showing all liens and encumbrances that effect Phase 11I and such reports
shall be incorporated herein by this reference. Additionally, Worthington shall be required to
perform any and all other obligations which are necessary for the development of Phase III
and/or the approval of the Plan, except for those obligations which Claypool shall be required to
complete as provided for in Section 2.02 below.
Section 2.02 Claypool's Duties.
(a) Worthington hereby grants to Claypool the right, and Claypool
hereby accepts the obligation, to complete all Improvements for Phase III. In
satisfying that obligation, Claypool agrees, on or about the date hereof, to enter
into the (i) Developers Agreement and (ii) an Agreement with Leon E.
Wintermyer, Inc., a Pennsylvania corporation ("Wintermyer"), for the
construction of all the Improvements (the "Construction Contract''). If required
by the Township, Worthington shall also enter into the Developers Agreement, as
fee title owner of Phase 11I. Claypool shall be responsible to post all security and
pay for all inspections required by the Developers Agreement and to pay for all
costs and expenses relating to the construction of the Improvements, as set forth
in the Construction Contract. Worthington acknowledges that the Improvements
will be completed within the time frame and pursuant to the terms and
specifications set forth in the Construction Contract and Claypool shall not be
responsible for any delay in the completion of the Improvements, unless due to a
default by Claypool of its obligations set forth in either the Developers Agreement
and/or the Construction Contract. Claypool shall be responsible at its expense for
securing dedication of all Improvements in Phase III which are required to be
dedicated to the Township or other municipal or public authority pursuant to the
terms of the approved Plan. Worthington shall cooperate with Claypool in
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05/12/03/SL1 350180v3/68450.001
securing said dedication by executing such documents as may be reasonably
requested by Claypool. Claypool shall be responsible for providing any
guaranties required by the Township or other municipal or public authority in
connection with the dedication of the Improvements in Phase III.
(b) Claypool shall also be responsible for obtaining all necessary
funding relating to the construction of the Improvements at Phase llI, including,
without limitation, the posting of all security required by the Developers
Agreement and the payment of all costs under the Construction Contract.
Notwithstanding the foregoing, in the event that Claypool needs to obtain
financing for the construction of such Improvements, Worthington agrees to
cooperate with Claypool in the obtainment of such financing, including, without
limitation, agreeing to mortgage its interest in Phase III as security for any such
loan. In no event, however, shall Worthington become obligated for such
financing. Any financing obtained by Claypool which requires the mortgage of
Phase 1II shall require such financial institution to release a Lot upon its sale and
any amounts required to obtain such a release shall be paid out of the proceeds of
the sale of the Lot due and owing to Claypool, as outlined below. On or about the
date of this Agreement, Claypool shall provide evidence to Worthington that it
has made the necessary financial arrangements to fund the construction of the
Improvements in Phase III.
ARTICLE 3
Marketing and Pricing of Lots; Distribution of Purchase Price
Section 3.01 Marketing of Lots. As of the Effective Date, Worthington hereby
grants to Claypool the exclusive right to market and to determine the general marketing scheme
of the Lots, specifically including, without limitation, having the right to select the realtor
and/or realtors that shall be permitted to act as a broker for the sale of such Lots and/or to list
the Lots for sale. Notwithstanding the foregoing, Claypool hereby agrees to consult and
cooperate with Worthington in an effort to determine the marketing scheme for the Lots. In the
event, however, that the parties cannot agree as to the general marketing scheme of the Lots and
the parties have negotiated ia good faith for thirty (30) days to determine such a marketing
scheme, then either party shall have the right to submit the issue to Zimmerman and
Zimmerman shall make the ultimate determination as to such marketing scheme. As part of
such marketing scheme, Claypool shall solicit all offers for the Lots and Worthington agrees to
refer any offers, interests or solicitation which it may receive relating to the Lots directly to
Claypool.
Section 3.02 Lot Prices. The parties hereto agree that the initial price for a Lot
in Phase III shall be Fifty-Eight Thousand Dollars ($58,000) (the "Price per Lot").
Notwithstanding the foregoing, in the event that either Claypool or Worflfington believes that
the Price per Lot needs to be either increased or decreased and the parties cannot mutually agree
upon such change, the parties will either chose a realtor, who will establish the new Price per
Lot, or will obtain an appraisal for Phase III, which shall establish the Price per Lot.
05/12/03/SL1 350180v3/68450.001
-4-
Accordingly, in the event that either party desires to increase or decrease the Price per Lot and
the parties cannot mutually agree on such change, the party desiring the change shall provide
the other party with written notice, which will set forth the proposed change and the reasons for
such change. The parties shall then meet within five (5) days of such notice to again discuss
the need for such increase or decrease. If the parties still cannot agree as to the change, they
will choose a realtor or appi'aiser to establish the Price per Lot no later than fifteen (15) days
after the date of the notice. In the event the parties cannot agree on an appraiser and/or realtor,
Zimmerman shall choose the realtor and/or appraiser which shall establish the Price per Lot, no
later than thirty (30) days after the date of the initial notice. The realtor and/or appraiser shall
provide each of the parties, including Zimmerman, with a determination as to the Price per Lot
within a reasonable time thereafter. The decision of such realtor or appraiser as to the Price per
Lot shall be fmal and binding on the parties and shall establish and replace the previously
established Price per Lot. The costs of the realtor and/or appraiser shall be split evenly between
the Claypool and Worthington.
Section 3.03 Obtainment of Offer. As indicated above, Claypool shall market
and receive all offers for the Lots. Upon receipt of an offer for a Lot, Claypool will notify,
orally or in writing, Worthington and the parties will meet and/or discuss the offer with one
another to determine if it is acceptable by all parties. The parties will make the determination of
whether to accept an offer within forty-eight (48) hours of presentation of the offer by Claypool
to Worthington. If the parties cannot mutually agree on whether the offer is acceptable, the
parties will consult with Zimmerman as soon as possible regarding the offer. Zimmerman will
have the ultimate decision on whether to accept the offer and the parties agree to be bound by
his decision, which decision shall be made within 48 hours of the parties' consultation with
Zimmerman. Notwithstanding anything contained herein to the contrary, if Claypool receives
an offer for a Lot equal to or greater than the then applicable Price per Lot, the offer shall be
deemed automatically accepted and Worthington agrees to immediately execute a binding
contract for such Lot upon presentation of such a contract by Claypool.
Section 3.04 Purchase of Lot by Claypool or a Builder. Worthington hereby
agrees and acknowledges that Claypool shall have the right to purchase any Lot from
Worthington at any time during the term of this Agreement at a discounted purchase price of
Three Thousand Dollars ($3,000.00) below the then applicable Price per Lot. Claypool shall
notify Worthington that it is exemising its right to purchase a Lot and Worthington agrees to
execute a binding contract with Claypool for such Lot within 24 hours of presentation of such a
contract by Claypool. Closing on such a Lot shall occur at a time determined by Claypool, but in
any event, no more than ninety (90) days from the date of the contract. In addition, Worthington
agrees and acknowledges that Claypool shall be permitted to sell any Lot to any builder which
Claypool determines would be an appropriate builder to construct a specification home within
Phase III at a discounted purchase price of Three Thousand Dollars ($3,000.00) below the then
applicable Price per Lot. Worthington agrees to execute a binding contract with Claypool for
such Lot within 24 hours of presentation of such a contract by Claypool. Closing on such a Lot
shall occur at a time detemained by Claypool, but in any event, no more than ninety (90) days
fi-om the date of the contract.
)5/12/03/SL1 350180v3/68450.001
Section 3.05 Distribution of Proceeds Upon Sale of Lot. The parties hereto
agree that the proceeds obtained upon the sale of a Lot shall be distributed on the date of
settlement of such Lot, as follows: (i) Twenty Thousand Dollars ($20,000) shall be paid to
Worthington, (ii) Twenty Thousand Dollars ($20,000) shall be paid to Claypool, and (iii) the
remaining proceeds shall be distributed evenly between Worthington and Claypool. It is further
agreed and acknowledged that Fourteen Thousand Five Hundred Eighty-Five Dollars ($14,585)
of Worthington's portion of such proceeds shall be paid directly to Pamay on the date of
settlement of such Lot. Furthermore, and as set forth in paragraph 2.02(1>) above, Claypool
shall be required to pay out of Claypool's portion of such proceeds any release amounts due and
owing to any financial institution for the obtainment of a release of such Lot from any mortgage
placed on Phase III in conjunction with Claypool's financing arrangements relating to the
construction of the Improvements.
ARTICLE 4
Additional Improvements to Phases 4 and 5 of Meadowbrook
Section 4.01 Pamay's Construction Work. As indicated above, the Real Estate
is subjected to the terms of the Act and Pamay is developing Meadowbrook in ten (10) separate
phases. It is agreed and acknowledged by Claypool, Worthington and Pamay that certain
improvements will need to be made in those portions of the Real Estate constituting Phase 1V
and Phase V simultaneously with the Improvements to be made on Phase Iff (the "Phase IV-V
Improvements"). As such, and due to the fact that Pamay will benefit fi'om the construction of
the Improvements in Phase Iff, Pamay agrees, on or before the date hereof, to enter into an
agreement with Wintermyer to complete the Phase IV-V Improvements simultaneously with the
construction of the Improvements. The costs of constructing the Phase IV-V Improvements
shall be exclusively borne by Pamay and neither Claypool nor Worthington shall be required to
contribute to the cost of the Phase IV-V Improvements. Pamay agrees to provide Claypool with
a copy of the contract with Wintermyer as of the Effective Date.
Section 4.02 Subordination. Upon the sale of Phase Iff from Pamay to
Worthington, Pamay shall take back a mortgage in Phase Iff (the "Mortgage"). Pamay
acknowledges that Claypool's financing of the Improvements may require Worthington to grant
such lender a first lien mortgage in Phase Iff (the "Encumbrance"). If Worthington is required
to grant such a Mortgage, Pamay agrees to subordinate the Mortgage to the Encumbrance so
that the Encumbrance shall constitute a first lien in Phase Iff. Pamay and Claypool shall
cooperate in negotiating and executing any documentation that may be reasonable and
necessary to evidence such subordination.
ARTICLE 5
Default
Section 5.01 Event of Default. In the event either party defaults in the
performance of any of its obligations set forth in this Agreement, the other party shall have the
right to proceed with any rights it may have, either at law or in equity, specifically including, an
05/12/03/SL1 350180v3/68450.001
-6-
injunction, the seeking of damages and/or specific performance of the terms and conditions of
this Agreement. The remedies set forth herein are cumulative and can be pursued concurrently
or successively, as desired by the non-breaching patty.
ARTICLE 6
Representations and Warranties
Section6.01 Representations and Warranties. Each of Claypool and
Worthington makes to the other party, for the benefit of such other party, and for the benefit of
the joint venture, each of the following representations and warranties.
(a) Organization, Power and Qualification. Claypool is a
Pennsylvania limited liabihty company and Worthington is a limited partnership,
both of which are duly organized and validly existing and are in good standing,
under the laws of the Commonwealth of Pennsylvania, has the power and
authority to own its properties and to carry out its business as now being
conducted.
(b) Ability to Carry Out the Agreement. Neither such party are
subject to or bound by any provision of any certificate or articles of incorporation
or bylaws, mortgage, deed of trust, lease, note, bond, indenture or other
instrument or agreement, license, permit, trust, custodianship, other restriction or
any applicable provision of any law, statute, rule, regulation, judgment, order,
writ or jurisdiction or to decree of any court, governmental body, administrative
agency, or arbitrator which could prevent or be violated by or under which there
would be default as a result of this Agreement, nor, except as expressly disclosed
herein, is the consent of any person, which has not been obtained, required for the
execution, delivcn-y and performance by such party of this Agreement.
(c) Validity of Agreement, Authority. The execution and delivery
of, and performance by such party of its respective obligations under this
Agreement have been duly authorized by all necessary action of the party.
(d) Absence of Litigation. There is no material litigation,
governmental or regulatory proceedings, investigations or, to the best of each
party's knowledge, threatened against such party or against any of the properties,
assets or business used or offered to be used by the joint venture.
(e) Permits and Licenses. Such party is conducting its business in
substantial compliance with all permits, licenses, approvals and authorizations of
all authorities necessary for it to carry on its business as presently conducted, and
all such permits, licenses, approvals and authorizations are in full force and effect
and to the best of the party's knowledge, no suspension or cancellation of any of
them is threatened. Furthermore, Worthington, has obtained all necessary
D5/12/03/SL1 350180v3/68450.001
-7-
permits, licenses, approvals and authorizations and all necessary governmental
authorities have consented to the construction and development of Phase III.
(f) Compliance with Laws. Such party is in compliance in all material
respects with, and their respective facilities, business, assets, property, leaseholds,
inventory and equipment, are in compliance in all material respects with, all
provisions of all acts, laws, rules and regulations having a material application to the
joint venture; and no party has received any written notice of outstanding citations,
notices or orders of non-compliance issued to any such person or relating to its
business, assets, property, leaseholds or equipment under any of the foregoing acts,
laws, roles or regulations, nor, to the best of the party's knowledge, is the party under
investigation by any governmental authority with respect to any alleged violation
thereof.
(g) Disclosure. No representation or warranty of such party contained
in this Agreement contains or will enntain any untrue statement of a material fact
or omits or will omit to state a material fact necessary in order to make the
statements contained therein, in light of the circumstances under which they were
made, not misleading.
ARTICLE 7
Further Agreements
Section 7.01 Additional Documents. Each of the parties agrees to execute and
deliver, and to cause the execution and delivery of such additional instruments and documents as
either of them may reasonably request for the purposes of carrying out or confirming the
transactions contemplated by tlfis Agreement.
Section 7.02 Mutual Assistance. After the Effective Date, each party agrees that it
will cooperate with the other party and fm-uish to each of them, such information, documents,
records, evidence, testimony and other assistance as such party may reasonably request in
connection with any actions, proceedings, arrangements or disputes of any nature involving or
affecting the joint venture.
ARTICLE 8
~lisceilaneous
Section 8.01 Entire Agreement. This Agreement contains the entire agreement
between the parties hereto with respect to the subject matter hereof and supersedes and cancels all
prior agreements with respect thereto. There are no restrictions, promises, representations,
warranties, agreements or undertakings of any of the parties hereto with respect to the transactions
contemplated hereby other than those set forth herein or therein or made hereunder or thereunder.
05/12J03/SLI 3501S0v3/68450.001
-8-
Section 8.02 Binding Effect. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective successors and pemfitted assigns.
Section 8.03 Assignment-No Third Party Beneficiaries Neither party to this
Agreement shall have the right to assign any of its rights or duties hereunder to any other person
without the written consent of the other party, which consent shall not be unreasonably withheld.
Nothing in this Agreement, express or implied, is intended to confer, nor shall anything herein
confer, on any person other than the parties hereto and the respective successors or permitted
assigns of the parties hereto, any rights, remedies, obligations or liabilities. Notwithstanding the
foregoing or anything herein to the contrary, Pamay is a third party beneficiary to this Agreement.
Section 8.04 Amendment or Modification. This Agreement may not be amended,
modified or supplemented by the parties hereto in any manner, except by an instrument in writing
signed on behalf of each of the parties hereto by their duly authorized officers or representatives.
Section 8.05 Severabihty. If uny provision of this Agreement shall be determined
by a court of competent jurisdiction to be invalid or unenforceable in any jurisdiction, such
detemfination shall not affect the validity or enforceability of the remaining provisions of this
Agreement in such jurisdiction or affect the validity or enforceability of such provision in any other
jurisdiction.
Section 8.06 Governing Law. Th/s Agreement shall be governed by, and be
construed in accordance with, the law of the Commonwealth of Pennsylvania without reference to
choice of law principles.
Section 8.07 Notices.. Where appropriate, all commtmications hereunder shall be
in writing and shall be deemed to have been duly given if signed by an appropriate officer and
delivered by hand, or sent by registered mail, return receipt requested, or by telex, telecopier,
telegram and cable to the following addresses:
If to Claypool:
Claypool III - Tiday, LLC
7 Bayberry Road
Carlisle, PA 17013
Attention: Mr. Harry Claypool
Telephone: (717) 554-3349
Telecopier: (717) 218-0868
With a copy to:
Thomas J. Nehilla, Esquire
Rhoads & Sinon LLP
One South Market Square
P.O. Box 1146
Harrisburg, PA 17108-1146
Telephone: (717) 233-5731
Telecopier: (717) 231-6676
05/12/03/SL1 350180v3/68450.001
-9-
If to Worthington:
With a Copy to:
If to Zimmerman:
If to Pamay:
With a Copy to:
Worthington Development, L.P.
13 Mountain Laurel Circle
Harrisburg, PA 17110
Attention:
Telephone: (717) 238-5655
Telecopier: (717)
Ronald M. Lucas, Esquire
Stevens & Lee
4750 Lindle Road
P.O. Box 11670
Harrisburg, PA 17111
Telephone: (717) 561-5204
Telecopier: (717) 561-5207
Calvin E. Zimmerman
332 Gregor Way
State College, PA 16801
Telephone: (814) 238-1976
Telecopier: (814) 237-2555
Pamay Development Co., Inc.
c/o Waggoner Fmtiger & Daub
5006 East Trindle Road, Suite 200
Mechanicsburg, PA 17055
Attention: David A. Phillips
Telephone: (717) 506-1222
Telecopier: (717) 506-1223
Ronald M. Lucas, Esquire
Stevens & Lee
4750 Lindle Road
P.O: Box 11670
Harrisburg, PA 17111
Telephone: (717) 561-5204
Telecopier: (717) 561-5207
By written notice to the other party, a party may change the address to which notices
shall be directed. Where permitted in this Agreement, notice may be given by telephone; provided
that the party giving the notice actually commuuicates directly with the party to which notice is to
be given.
05/12/03/8L1 350180v3/68450,001
-10-
Section 8.08 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original of this Agreement and all of which together
shall constitute one and the same instrument.
Section 8.09 Incorporation of Recitals. The recitals set forth in the beginning of
this Agreement are hereby incorporated by this reference.
IN WITNESS WHEREOF, intending to be legally bound hereby, the parties hereto
have caused this Agreement to be executed as of the date and year first above written.
ATTEST:
CLAYPOOL TIDAY, LLC
WOR~GTON DE~LOPME~, L.P.
Calvin E. Zimmerman and Pamay Development Co., Inc. hereby execute this
Agreement to acknowledge their consent and agreement to only those provisions that specifically
relate to such party.
WITNE/~/ATTEST:
Calvin E. ~unerman
Pamay Development Co., Inc.
Its: ~//~/ -
05/12/03/8L1 350180v3/68450.001
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Part of Tax Map Parcel No. 21-06-0019-001
THIS DEED
COPY
in the year of our Lord Two Thousand and Three (2003)
BETWEEN
PA.MAY DEVELOPMENT CO., INC., a Pennsylvania Corporation with its principal office in
Hampden Township, Cumberland County, Commonwealth of Pennsylvania, GRANTOR,
WORTItlNGTON DEVELOPMENT, L.P., a Pennsylvania limited partnership, GRANTEE.
WlTNESSETH, that in consideration of THREE HUNDRED AND FIFTY THOUSAND
($350,000) DOLLARS, in hand paid, the receipt whereof is hereby acknowledged, the said Grantor does
hereby grant and convey to the said Grantee, its successors and assigns, the following described property to-
w/t:
ALL THAT CERTAIN TRACT of land situated in Middlesex Township and North Middleton
To~vnship, Cumberland County, PA, being Phase 3 of the Meadowbrook Farms Subdivision, as shown on
a Plan entitled, "Meadowbrook Farms, Final Subdivision Plan, Phase 3,' dated October 31, 2000 by
PennTerra Engineering, Inc., State College, PA, being bounded and described as follows:
BEGINNING at an iron pin, being a northeasterly comer of future Phase 6 and lying in a
southerly line of existing Phase 1; thence along the Phase 1 lands N81 °22'5 I"E, 126.33 feet to an iron
pin; thence continuing along said lands the following bearings and distances: N03°08'I7"W, 164.97 feet
to an iron pin; thence N86°51 '4Y'E, 20.39 feet to an iron pin; thence N03°08' 17"W, 50.00 feet to an iron
pin; thence S86°5l '4Y'W, 2.39 feet to an iron pin; thence N03°08' 17"W, 195.27 feet to an iron pin;
thence N59°04'49"E, 87.35 feet to an iron pin, being an easterly comer of said lands and a westerly
comer of existing Phase 2; thence along the Phase 2 lands the following bearings and distances:
S44°54'4 I"E, 111.90 feet to an iron pin; thence S51 °38'54"E, 228.85 feet to an iron pin; thence
NSl°56'22"E, 184.55 feet to an iron pin; thence NSl°44'32"E, 50.00 feet to an iron pin; thence
N08°0Y38"W, 33.71 feet to an iron pin; thence N81°56'22"E, 172.72 feet to an iron pin, being a
southeasterly comer of said lands and lying in a southeasterly line of future Phase 10; thence along the
Phase 10 lands S00°48'54"E, 102.49 feet to an iron pin; thence S20°40'58"E, 221.51 feet to an iron pin,
being a westerly comer of said lands and a northerly comer of future Phase 9; thence along the Phase 9
lands the following bearings and distances: S69°19'02'W, 160.00 feet; thence S20°40'58"E, 71.36 feet to
an iron pin; thence S69°19'02"W, passing over an iron pin, being a westerly comer of said lands and a
northerly comer of future Phase 8 at 160.00 feet, for a total distance of 370.00 feet to an iron pin; thence
continuing along said lands the following beatings and distances: S20°40'58"E, 5.50 feet to an iron pin;
thence S69°19'02"W, 210.00 feet to an iron pin; thence S20°40'58"E, 322.50 feet to an iron pin, being a
westerly comer of said lands and a northerly comer of future Phase 7; thence along the Phase 7 lands the
following bearings and distance: S69°19'02"W, 160.00 feet to an iron pin; thence S20°40'58"E, 43.08
fee to an iron pin; thence S69°19'02"W, 180.03 feet to an iron pin, being a westerly comer of said lands
and a northeasterly comer of future Phase 4; thence along the Phase 4 lands the following bearings and
distances: N53°30'18"W, 107.50 feet to an iron pin; thence N61°28'35"W, 50.00 feet to an iron pin;
thence along a curve to the right, having a chord bearings ofN29°54'29"E, a chord distances of 13.29
D5/21/03/SLI 352042vl/67050.001
feet, a radius of 275.00 feet and an arc length of 13.29 feet to an iron pin; thence N58°42'27"W, 195.47
feet to an iron pin, being a northwesterly comer of said lands and a southeasterly comer of future Phase 6;
thence along the Phase 6 lands the following bearings and distances: N23°I 8'42"W, 32.86 feet to an iron
pin; thence N69°19'02"E, 154.10 feet to an iron pin; thence N26°08'46"W, 137.99 feet to an iron pin;
thence N81°22'5 I'E, 181.03 feet to an iron pin; thence N08°37'09"W, 95.47 feet to an iron pin; thence
along a curve to the left, having a chord bearing ofN53°37'09"W, a chord distance of 35.36 feet, a radius
of 25.00 feet and an arc length of 39.27 feet to an iron pin; thence N08°37'09"W, 50.00 feet to an iron
pin; thence N81°22'5 I"E, I 1.94 feet to an iron pin; thence N08°37'09"W, 160.00 feet to an iron pin,
being the place of BEGINNING, containing 13.770 acres.
BEING PART OF THE SAME premises which Mary Verdelli by her Deed dated January 4, 1989
and recorded January 5, 1989, in the Office of the Recorder of Deeds, in and for Cumberland County,
Pennsylvania, in Deed Book T-33, page 296, granted and conveyed unto Pamay Development Co., Inc., a
Pennsylvania corporation, party of the first part and Grantor herein.
UNDER AND SUBJECT, NEVERTI-~LESS, to:
1)
2)
Planned Community Declaration for Meadowbrook Farms dated February 2, 1998, and recorded
February 3, 1998, in Cumberland County Miscellaneous Book 567, Page 1090;
First Amendment to Planned Community Declaration for Meadowbrook Farms - Phase II dated
August 6, 1999 and recorded August 17, 1999 in Cumberland Coanty Miscellaneous Book 622, page
475, and
3)
First Amendment to Planned Community Declaration for Meadowbrook Farms dated April 19, 2000,
and recorded April 24, 2000, in Cumberland County Misc. Book 642, Page 967.
AND the said Grantor Will Specially WARRANT AND FOREVER DEFEND the properff hereby
conveyed.
IN WITNESS WltlgREOF, the Grantor has caused this Deed to be signed by its President, and also
attested to by its Secretary, and its Corporate Seal to be hereunto affixed, the day and year first above written.
SIGNED, SEALED AND DELIVERED
IN THE PRESENCE OF
ATTEST:
PAMAY DEVELOPMENT CO., 1NC.
Calvi Zimmermah'-,,
~ President
05/21103/SL1 352042vl/67050.001
COMMONWEALTH OF PENNSYLVANIA )
)
COUNTY OF DAUPHIN )
On this, thd '~SI' day of ~'~x] A.D. 2003, before me, a Notary Public, the
undersigned officer, personally appeared Calvin E. Zimmerman, who acknowledged himself to be the Vice-
President of Pamay Development Co., Inc., the foregoing corporation, and that he as such President, being
authorized to do so, executed the foregoing deed for the purposes therein contained by signing the name of'
the corporation by himself as President.
IN WITNESS 'WItEREOF, I hereunto set my hand and official seal.
INOTARIAL SEAL I
MELISSA M. ZEIDERS, Notary Public
Swatara Twp., Dauphin County
,M,~, Commission Expires February 24, 2007
· .~/Y P UB'L'{~
(SEAL)
I HEREBY CERTIFY, that the precise residence of the Grantee is:
/ oO Lmsret Moun
Iqarri bu j
Attomey:~r Agent for Grantee
COMMONWEALTH OF PENNSYLVANIA )
COUNTY OF CUMBERLAND
Recorded on this day of
the said County in Deed Book , Page
the date above written.
A.D. 20 , in the Recorder's Office of
· Given under my hand and the seal of the said Office,
Recorder
5/21/03/SLI 352042vl/67050.001
COMMON WEALTH OF PENNSYLVANIA
DEPARTMENT OF S TA E
September 02, 2003
TO ALL WHOM THESE PRESENTS SHALL COME, GREETING:
WORTHINGTON DEVELOPMENT, L.P.
I, Pedro A. Cort6s, Secretary of the Commonwealth of Pennsylvania do hereby cedify that the foregoing
and annexed is a true and correct photocopy of Certificate of Limited Partnership
which appear of record in this depadment
IN TESTIMONY WHEREOF, I have
hereunto set my hand and caused
the Seal of the Secretary's Office to
be affixed, the day and year above
written.
Secretary of the Commonwealth
STMARTZ
~lior~fllril Nbmber
9953. 763
Filed with the D ailment of State on__
CERTIFICATE OF UMITED PARTNERsHIp
In compliance with the requirements of 15 Pa.C.$. § 8Sl I (relating to certificate of I mlted partnership), the undersigned,
lesidng to form a limited partnership, hereby certifies that:
. The nasa of the limited partnemhip is: Worth£nc~con Development, [,. p.
· The (a) aclda~s of this hmited partnership's nitial registered office in this Commonwealth or (b) name of its CommerciaJ.
registered office provider and the county of venue is:
Zip C~ur~y
~ a lim~ed paralsmhlp represented by a corru~mmlaJ registered c~fics provider, Ihs c.~umy In (b) shall be deemed the courf~y in which
the limited pa~,lershlp Is located for venus arid offk:iaJ publication purposes.
The name and business address of each general partner of the partnership is:
Name
M elle L. Cla 1 Inc.
15 Maybelle Court, MechanicaburG, PA
17055
(Chec~ and i~ apprapf~le campl~e, on~ of the foauwing):
X The format/on of the limited partnership shall be effective upon filing this Certificate of U~nited Pallnership in the
Department of State.
The formation of the limited partnership shall be effective on: __
Date
Hour
D'3CB:15.8511 (Rev 90)-2
~953-764 ', '*.,.
IN TESTIMONY WHEREO,F..fl~e undersigned ~3.eneml partner(s) cR the limited pa~nemhlp has
(have)
axecuted
this
Cen
ofUmitedPa~nershlpthl.~/~'r~'r~ Clm/~ ~v ,lg 99
.Ha~L'7 $. Clay~ool, Sr., Secretary
(Signature)
(Signature)
BUREAU OF ZNDZVTDUAL TAXES
ZNHERZTAHCE TAX DZYTS/OH
PO BOX 280601
HARRZSBURG, PA 17118-0601
COMMONNEALTH OF PENNSYLVANZA
DEPARTMENT OF REVENUE
NOTZCE OF ZNHERZTANCE TAX
APPRAZSEMENT, ALLONANCE OR DZSALLO#ANCE
OF DEDUCTZONS AND ASSESSMENT OF TAX
REV-lSd? EX AFP C09-0~)
TZMOTHY C NAGGONER
NASGONER ETAL
5006 E TRZNDLE RD ZO0~,
MECHANZCSBURG PA 17~Q5~
DATE
ESTATE OF
DATE OF DEATH
FZLE NUMBER
COUNTY
ACN
12-15-200q
CLAYPOOL SR
11-2q-2005
21 0~-0767
CUMBERLAND
101
Amoun~ RemA~c~ed
HARRY S
MAKE CHECK PAYABLE AND REMXT PAYMENT TO:
REGISTER OF WTLLS
CUMBERLAND CO COURT HOUSE
CARLTSLE, PA 17015
CUT ALONG THXS LZNE ~-- RETAZN LONER PORTZON FOR YOUR RECORDS ~
REV-1547 EX AFP (01-03) NOTZCE OF ZNHER]:TANCE TAX APPRAZSEMENT, ALLONANCE OR DZSALLONANCE OF DEDUCTXONS AND ASSESSMENT OF TAX
ESTATE OF CLAYPOOL SR HARRY S FZLE NO. 21 0q-0767 ACN 101 DATE 12-15-200~
TAX RETURN NAS: (X) ACCEPTED AS FTLED ( ) CHANGED
RESERVATTON CONCERNZNG FUTURE ZNTEREST - SEE REVERSE
APPRAZSED VALUE OF RETURN BASED ON: ORZGINAL RETURN
1. Real Es~e~e (Schedule A) (1)
2. S~ocks end Bonds (Schedule B) (2)
5. Closely Held S~ock/Par~narshAp In~ares~ (Schedule C) ($)
q. Mortgages/No,es RaceAvable (Schedule D) (q)
5. Cash/Bank Deposits/MAsc. Personal Proper~y (Schedule E) (5)
6. JoAn~ly Owned Proper~y (Schedule F) (6)
7. Transfers (Schedule G) (7)
B. To,al Asse~s
APPROVED DEDUCTZONS AND EXEMPTZONS:
9. Funeral Expenses/Adm. Cos~s/MAsc. Expenses (Schedule H) (9)
10. Debts/Mortgage LAabilA~Aes/LAens (Schedule X) (10)
11. To,al Deduc~Aons
12. Ne~ Value of Tax Re~urn
19z565.00
.00
.00 NOTE: To insure proper
.00 credi~ ~o your account,
subeA~ ~he upper portion
of ~his form wi~h your
.00 ~ax payment.
.0O
.00
9,951.00
58~6R0.00
(11)
(12)
15.
1~.
NOTE:
ASSESSMENT OF TAX:
15. Amoun~ of Line 1~ a~ Spousal ra~e
16. Amoun~ of Line lq ~exabla a~ Lineal/Class A ra~a
17. Aeoun~ of LAne lq a~ SiblAng ra~e
18. Aeoun~ of Line lq ~axable a~ Collateral/Class B ra~e
19. PrAncA)al Tax Due
TAX CREDITS:
PAYMENT RECEZPT DZSCOUNT
DATE NUMBER XNTEREST/PEN PAZD (-)
(8) 19,56.%.00
Charitable/Governmental Bequests; Non-elected 9115 Trus~cs (Schedule J) (15)
Na~ Value of Es~a~a Sub~ec~: ~o Tax (lq)
Zf an assessment was issued previously, lines 14, 15 and/er 16, 17,
reflect figures that lnclude the total of ALL returns assessed to date.
&8.~92.00
q9,129.00-
IF PAZD AFTER DATE [NDZCATED~ SEE REVERSE
FOR CALCULATZON OF ADDZT/ONAL ZNTEREST.
.00
q9,229.00-
18 and 19 will
(1~) .00 x O0 = .00
(16) .00 x Oq5= .00
(17) .00 x 12 = .00
(18) .00 x 15 = .00
(19)= . O0
AMOUNT PAZD
TOTAL TAX CREDIT
BALANCE OF TAX DUE
~NTEREST AND PEN.
TOTAL DUE
.0O
.00
.00
.00
( XF TOTAL DUE ZS LESS THAN $1, NO PAYMENT XS RE~U/RED.
ZF TOTAL DUE 1S REFLECTED AS A 'CREDZT" (CR), YOU MAY BE DUE
A REFUND. SEE REVERSE SZDE OF THZS FORM FOR ZNSTRUCTZONS.);~L,\!~_.
RESERVATION:
PURPOSE OF
NOTICE:
PAYHENT:
REFUND (CR):
OBJECTIONS:
ADMIN-
ISTRATIVE
CORRECTIONS:
DISCOUNT=
PENALTY:
INTEREST:
Estates of decedents dying on or before December 12, 1982 -- if any future interest in the estate is transferred
in possession or enjoyment to Class B (collateral) beneficiaries of the decedent after the expiration of any estate for
lifo or for years, the Commonwealth hereby expressly reserves the right to appraise and assess transfer Inheritance Taxes
at the lawfuI CIass B (collateral) rate on any such future interest.
To fulfill the requirements of Section ZlqO of the Inheritance and Estate Tax Act, Act 23 of ZOO0. (72 P.S.
Section 91q0).
Detach the top portion of this Notice and submit with your payment to the Register of Hills printed on the reverse side.
--Make check or money order payable to: REGISTER OF HILLS, AGENT
A refund of a tax credit, which ems not requested on the Tax Return, may be requested by completing an
"Application for Refund of Pennsylvania Inheritance and Estate Tax" (REV-l:515). Applications are available
online at www.revenue.state.pa.us, any Register of Wills or Revenue District Office, or from the Department's
Iq-hour answering service for forms orders= 1-800-:56Z-Z050; services for taxpayers with special hearing and/or
speaking needs= 1-BO0-q~7-$OZO (TT only).
Any part3/ in interest not satisfied with the appraismant, allowance or disallowance of deductions or assessment of tax
(including discount or interest) as shown on this Notice may object within 60 days of the data of receipt of this notice
by filing one of the following:
A) Protest to the PA Department of Revenue, Board of Appeals. You may object by filing a protest online at
aww.boardofappemls.state.pa.us on or before the expiration of the sixty-day appeal period. In order for
an electronic protest to bm valid, you must receive a confirmation number and processed date from the
Board of Appeals ambsite. You may also send a written protest to PA Department of Revenue, Board of Appeals
P.O. Box Z810Z1, Harrisburg, PA 171ZB-10Z1. Petitions may not be faxad.
D) Election to have the matter determined at the audit of the account of the personal representative.
C) Appeal to the Orphans' Court.
Factual errors discovered on this assessment should be addressed in eriting to: PA Dmpmrtq~ant of Revenue,
Bureau of Individual Taxes, ATTN: Post Assessment Reviee Unit, P.O. Box Z80601, Harrisburg, PA 171Z8-0601
Phone (717) 787-6505. See page S of the booklet "Instructions for Inheritance Tax Return for a Resident
Decedent" (REV-1501) for an explanation of administratively correctable errors.
If any tax due is paid within three (:53 calendar months after the dacedent's death, a five percent (SZ) discount of
the tax paid is allowed.
The 15Z tax amnesty non-participation penalty is computed on the total of the tax and interest assessed, and not
paid before January 18, 1996, the first day after the end of the tax amnesty period. This non-participation
penalty is appealable in the same manner and in the the same time period as you mould appeal the tax and interest
that has been assessed as indicated on this notice.
Interest is charged beginning aith first day of delinquency, or nine (9) months and one (1) day from the date of
death, to the date of payment. Taxes which became delinquent before January 1, 198Z bear interest at the rate of
six (6Z) percent per annum calculated at a daily rate of .O0016q. A11 taxes which became delinquent on and after
January 1, 1982 et11 bear interest at a rate which will vary from calendar year to calendar year with that rate
announced by the PA Department of Revenue. The appIicabIe interest rates for 1982 through ZOOq are:
Interest Daily Interest Daily Interest Daily
Year Rate Factor Year Rate Factor Year Rate Factor
~ gox .OOOS~8 l'~)'~'~ - 1991 11Z .000:501 ~ 97. . OOOgfi7
1983 167. · 0000,:58 1992 9Z . O00Z~,7 2:002: 67. . 00016~,
1980~ llZ .000:501 199:5-199~ 7Z .00019Z ZOO:5 5Z .0001:57
1985 13Z . 000356 1995-1998 9Z . O00Zo,7 ZOOO· qZ .000110
1986 IOZ . 00027q 1999 7Z . 00019Z
1987 IOZ . O00Z7q ZOO0 77. .000192
--Interest is calculated as follows:
INTEREST = BALANCE OF TAX UNPAID X NUNBER OF DAYS DELTNQUENT X DALLY INTEREST FACTOR
--Any Notice issued after the tax becomes delinquent will reflect an interest calculation to fifteen (15) days
beyond the date of the assessment. If payment is made after the interest computation date shown on the
Notice, additional interest must bm calculated.
STATUS REPORT UNDER RULE 6.12
Name of Decedent:
HARRY S. CLAYPOOL, SR.
Date of Death:
NOVEMBER 24, 2003
No. 2001-04-0767
Pursuant to Rule 6.12 of the Supreme Court Orphans' Court Rules, I report the following
with respect to completion of the administration of the above-captioned estate:
1. State whether administration of the estate is complete: X Yes __ No
2. If the answer is No, state when the personal representative reasonably believes that the
administration will be complete:
3. If the answer to No. 1 is Yes, state the following:
a. Did the personal representative file a final account with the Court?
Yes X No
b. The separate Orphans' Court No. (if any) for the personal representative's
account is:
c. Did the personal representative state an account informally to the parties
in interest? X Yes No
Date:
d. Copies of receipts, releases, joinders and approvals of formal or informal
accounts may be filed with the Clerk of Orphan's Court and may be
attached to this report.
12/16/2004
Signature (
IRWIN & McKNt ;HT
Roger B. Irwin, ~squire
Name (please type or ~rint)
60 West Pomfret Street
Address
Carlisle, PA 17013
City, State, Zip
(717) 249-2353
Telephone Number
Capacity:'
X
Personal Representative
Counsel for Personal Representative