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HomeMy WebLinkAbout03-23-15 (2) pennsytvania 1505614105 D MKKENTOEAEVE EX(03-14)(R) REV-1500 OFFICIAL USE ONLY Bureau of Individual Taxes County Code Year � File Number_ PO BOX 280601 INHERITANCE TAX RETURN Harrisburg, PA 17128-0601 RESIDENT DECEDENT ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death MMDDYYYY Date of Birth MMDDYYYY f 11082006 03221918 Decedent's Last Name Suffix Decedent's First Name MI LWARFEL STANLEY `^ (If Applicable)Enter Surviving Spouse's Information Below Spouse's Last Name Suffix Spouse's First Name Ml THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS FILL IN APPROPRIATE OVALSBELOW Cg[> 1.Original Return O 2.Supplemental Return O 3. Remainder Return(date of death prior to 12-13-82) O 4.Agriculture Exemption(date of O 5. Future Interest Compromise(date of O 6. Federal Estate Tax Return Required death on or after 7-1-2012) death after 12-12-82) O 7. Decedent Died Testate OD 8. Decedent Maintained a Living Trust 9. Total Number of Safe Deposit Boxes (Attach copy of will.) (Attach copy of trust.) O 10. Litigation Proceeds Received QD 11. Non-Probate Transferee Return O 12. Deferral/Election of Spousal Trusts (Schedule F and G Assets Only) O 13. Business Assets O 14.Spouse is Sole Beneficiary (No trust involved) CORRESPONDENT- THIS SECTION MUST BE COMPLETED.ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO: Name Daytime Telephone Number John A. Wolfe, Esq. 1(717) 337-3754 _ First Line of Address 47 West High Street Second Line of Address E City or Post Office State ZIP Code Gettysburg PA 17325 Correspondent's email address: WolfeandriCe@pa.net REGISTER OF WILLS USE ONLY REGISTER OF WILLS USE ONLY C=> DATE FILED MMDDYYYY n � c.!-t � f O � r'7 fU 7 t t DATE FILED STAMP cT ,Tt PLEASE USE ORIGINAL FORM ONLY r, -<{ C0 r� M Side 1 c' c3 rn 4ii�i� iiiii iiui ilii ilii 1505614105 J 1505614205 REV-1500 EX(FI) Decedent's Social Security Number Decedent's Name: WARFEL, STANLEY R. RECAPITULATION 1. Real Estate(Schedule A). .. .... .... .......................... ........ 1. 2. Stocks and Bonds(Schedule B) ..... .... ................ ........ ...... 2. 3. Closely Held Corporation, Partnership or Sole-Proprietorship(Schedule C) ... .. 3. 4. Mortgages and Notes Receivable(Schedule D) . .... .... .................. 4. 5. Cash, Bank Deposits and Miscellaneous Personal Property(Schedule E). ... ... 5. 6. Jointly Owned Property(Schedule F) O Separate Billing Requested .... ... 6. 45,893.06 { 7. Inter-Vivos Transfers&Miscellaneous Non-Probate Property i (Schedule G) O Separate Billing Requested..... ... 7. I 8. Total Gross Assets(total Lines 1 through 7). .... .. .. .... .... ... .... .... . 8. I 45,893.06 E I, 9. Funeral Expenses and Administrative Costs(Schedule H)... .... .... .. . .... . 9. 10. Debts of Decedent,Mortgage Liabilities and Liens(Schedule 1)... .... .. . .... . 10. �� I s I ; 11. Total Deductions(total Lines 9 and 10). .... . .... .... .. . .... .... .... .. . . 11. 12. Net Value of Estate(Line 8 minus Line 11) . . . .... .. .. .. .. ... .... .... .. .. 12. 13. Charitable and Governmental Bequests/Sec.9113 Trusts for which ' an election to tax has not been made(Schedule J) . .... .... ....... .... .... 13. 14. Net Value Subject to Tax(Line 12 minus Line 13) . ....... .... ... . .... .... 14. I 45,893.06 TAX CALCULATION-SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate,or _ transfers under Sec.9116 Rte, (a)(1.2)X.0_ 15. 16. Amount of Line 14 taxable at lineal rate X.0_ 16. E 17. Amount of Line 14 taxable at sibling rate X.12 17. 18. Amount of Line 14 taxable 45 893.06 6,883.96 at collateral rate X.15 18. 19. TAX DUE .................. ..................................... .. 19. 6,883.96 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT O Under penalties of perjury,I declare I have examined this return,including accompanying schedules and statements,and to the best of my knowledge and belief. it is true,correct and complete.Declaration of preparer other than the person responsible for filing the return is based on all information of which preparer has any knowledge. SIGN RE F PER RE ONSIBLE FOR FILING RETURN D TE IF4 6 A DRESS 44 k4aple Street, Gettysburg, PA 17325 SIGNA RE CIF PREP ER THER N PERSON RESPONSIBLE FOR FILING THE RETURN DATE jykA a-o ADD S 47 Mst High Street Geftysburg, PA 17325 Side 2 J 4 1505614205 REV-1500 EX (FI) Page 3 File Number Decedent's Complete Address: DECEDENT'S NAME WARFEL, STANLEY R. STREET ADDRESS 140 Lawrence Lane CITY STATE ZIP Carlisle PA 17015 Tax Payments and Credits: 1. Tax Due(Page 2,Line 19) (1) 6,883.96 2. Credits/Payments A.Prior Payments B.Discount (See instructions.) Total Credits(A+B) (2) 3. Interest (3) 2,148.24 4. If Line 2 is greater than Line 1 +Line 3,enter the difference. This is the OVERPAYMENT. Fill in oval on Page 2,Line 20 to request a refund. (4) 5. If Line 1 +Line 3 is greater than Line 2,enter the difference.This is the TAX DUE. (5) 9,032.20 Make check payable to: REGISTER OF WILLS, AGENT. PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred.......................................................................................... ❑ 0 b. retain the right to designate who shall use the property transferred or its income ............................................ ❑ 0 c. retain a reversionary interest.............................................................................................................................. ❑ 0 d. receive the promise for life of either payments,benefits or care?...................................................................... ❑ N 2. If death occurred after Dec. 12, 1982,did decedent transfer property within one year of death without receiving adequate consideration?.............................................................................................................. ❑ 3. Did decedent own an"in trust for"or payable-upon-death bank account or security at his or her death?.............. ❑ 0 4. Did decedent own an individual retirement account,annuity or other non-probate property,which contains a beneficiary designation? ........................................................................................................................ ❑ E IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES,YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. For dates of death on or after July 1, 1994,and before Jan. 1,1995,the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3 percent[72 P.S.§9116(a)(1.1)(i)]. For dates of death on or after Jan. 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 0 percent [72 P.S.§9116(a)(1.1)(ii)].The statute does not exempt a transfer to a surviving spouse from tax,and the statutory requirements for disclosure of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1,2000: • The tax rate imposed on the net value of transfers from a deceased child 21 years of age or younger at death to or for the use of a natural parent, an adoptive parent or a step-parent of the child is 0 percent[72 P.S.§9116(a)(1.2)]. • The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is 4.5 percent,except as noted in[72 P.S.§9116(a)(1)]. • The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12 percent[72 P.S. §9116(a)(1.3)].A sibling is defined, under Section 9102,as an individual who has at least one parent in common with the decedent,whether by blood or adoption. REV-1509 EX+(oi-io) i 7 pennsylvania SCHEDULE F DEPARTMENT REVENUE JOINTLY-OWNED PROPERTY INHERITANCE TAXAX RETURN RESIDENT DECEDENT ESTATE OF: FILE NUMBER: WARFEL, STANLEY R. If an asset became jointly owned within one year of the decedent's date of death,it must be reported on Schedule G. SURVIVING JOINT TENANT(S)NAME(S) ADDRESS RELATIONSHIP TO DECEDENT A.Joyce A. Minnich 140 Lawrence Lane,Carlisle, PA 17015 None B. C. JOINTLY OWNED PROPERTY: LETTER DATE DESCRIPTION OF PROPERTY %OF DATE OF DEATH ITEM FOR JOINT MADE INCLUDE NAME OF FINANCIAL INSTITUTION AND BANK ACCOUNT NUMBER OR SIMILAR DATE OF DEATH DECEDENT'S VALUE OF NUMBER TENANT JOINT IDENTIFYING NUMBER.ATTACH DEED FOR JOINTLY HELD REAL ESTATE. VALUE OF ASSET INTEREST DECEDENT'S INTEREST i. A. 01/20/95 See attached letter 91,786.12 50% 45,893.06 TOTAL(Also enter on Line 6, Recapitulation) $ 45,893.06 If more space is needed,use additional sheets of paper of the same size. REV-1513 EX+(01-10) pennsylvania SCHEDULE DEPARTMENT OF REVENUE INHERITANCE TAX RETURN BENEFICIARIES RESIDENT DECEDENT ESTATE OF: FILE NUMBER: WARFEL, STANLEY R. RELATIONSHIP TO DECEDENT AMOUNT OR SHARE NUMBER NAME AND ADDRESS OF PERSON(S)RECEIVING PROPERTY Do Not List Trustee(s) OF ESTATE I TAXABLE DISTRIBUTIONS[Include outright spousal distributions and transfers under Sec.9116(a)(1.2),] 1. Joyce A.Minnich, 140 Lawrence Lane,Carlisle,PA 17015 None All ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THROUGH 18 OF REV-1500 COVER SHEET,AS APPROPRIATE. II NON-TAXABLE DISTRIBUTIONS A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT TAKEN: 1. B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS: 1. TOTAL OF PART II— ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ONLINE 13 OF REV-1500 COVER SHEET. $ If more space is needed,use additional sheets of paper of the same size. i WOLFE, RICE AND QUINN, LLC John A. Wolfe Attorneys at Law Telephone Patrick W. Quinn 47 West High Street (717) 337-3754 Gettysburg,Pennsylvania 17325 Facsimile (717) 337-9211 Email:wolfeandrice@pa.net March 20, 2015 Estate of Stanely R. Warfel File No. TO: Whom It May Concern: Stanley R. Warfel was the owner of real estate with an address of 140 Lawrence Lane, Carlisle, Pennsylvania 17013 . In January of 1995 that property was titled jointly with Joyce A. Minnich. A copy of that deed is attached. Thereafter, on February 13, 2002 that property was conveyed into a living trust created by Mr. Warfel and Ms . Minnich. A copy of that deed and the trust is also enclosed. Enclosed please find the property assessment history from the Cumberland County Tax Assessors office . Please note the property value as of date of death for the listed real estate was $104, 540 . 00 . The common level ratio factor for that date of death was . 878 . That multiplied by the assessed value shows a total value of $91, 786. 12 . The one-half balance of $45, 893 . 06 is listed as the taxable share. Very truly yours, WOLFE & RICE, LLC By: J hn A. Wolf Esq. JAW/jmh 5-7 a ROBE;�T P. ZIEGLEt RECORuEFc QF DEEDS GW�t�� ND COUNTY-FA zoolP FEB 21 12 30 THIS DEED,made the g day of 1,, in the year two thousand two (2002), between STANLEY R.WARFEL and JOYCE A. MINNICH,of Cumberland County,Pennsylvania, Grantors and STANLEY R.WARFEL and JOYCE A.MINNICH,Trustees,or their successors in trust,raider the STANLEY R.WARFEL and JOYCE A. MINNICH LIVING TRUST,dated February 13,2002, and any amendments thereto, Grantees WITNESSETH,that in consideration of One Dollar($1.00)and other valuable consideration,in hand paid,the receipt whereof is hereby acknowledged,the said Grantor does hereby grant and convey to the said Grantee,his heirs and assigns, ALL the following described real estate,together with the improvements erected thereon, lying and being situate in West Pennsboro Township,Cumberland County,Pennsylvania, more particularly bounded and described as follows. BEGINNING at a spike in Township Road 437.and a fifty(50)foot proposed street; thence along proposed street, South twenty-eight(28)degrees zero(00)minutes East, two hundred twenty-five and sixty-four hundredths(225.64)feet to an iron pin at the corner of land of proposed street and lands now or formerly of Yinger;thence along lands now or formerly of Yinger,South sixty-two(62)degrees zero(00)minutes West,one hundred ninety-five and zero hundredths(195.00)feet to an iron pin to the corner of Lot No. 10;thence along Lot No. 10,North twenty-eight(28)degrees zero(00)minutes West,two hundred twenty-two and eighty-five hundredths(222.85)feet to a spike in the center of the aforesaid Township Road 437;thence along the center of Township Road 437,North fifty-six(56)degrees thirty-three(33)minutes forty(40)seconds East, twenty-nine and forty-eight hundredths(29.48)feet to a spike;thence along the same, North sixty-two(62)degrees zero(00)minutes East,one hundred sixty-five and sixty- five hundredths(165.65)feet to the place of beginning. CONTAINING 1.009 acres and being Lot No.9 in subdivision laid out by Thomas Alvin Neff,R.S.,dated May 30, 1975. 500K 250 PACE2301 Commonwealth of Pennsylvania SS. County of Cumberland On this Ak day of 2002 before me,the undersigned officer,personally appeared STANLEY R ARFEL and JOYCE A.MINNICH,known to me(or satisfactorily proven)to be the persons whose names are subscribed to the within instrument,and acknowledged that they executed the same for the purposes therein contained. IN WITNESS WHEREOF,I hereunto set my hand and official seal. AlIZ, i tary Public Notarial Seal Marylou A.Stambaugh,Notary Public Lancaster,Lancaster County My Commission Expires Apr.ti,2004 U. CERTIFICATE OF RESIDENCE I do hereby certify that the precise residence and complete post office address of the within named Grantee is 140 Lawrence Lane,C ' le,PA 17013. I Certify this to he recordcd In Cumberland �C o,.l,n t y ii=AAs V ; Recorder of Deeds BOOK 250 PAGEM3 t f 3 d1"f '35 JEit(25 PM 3 2e. Tm Pa Nurbers 46-05.0Sp7-016 THIS DHED cn ` cn c MADE this day of - ,7h'aN rn.n� , 1995, v �. BETWEEN STANLEY R. WARFEL, widower and single man, of 140 Lancre0$; Lane, Carlisle, Pennsylvania 17013, W " "GRANTOO, A N D STANLEY R. WARPEL AND JOYCE A. MINNICH, of 140 Lawrence Lane, Carlisle, Pennsylvania 17013, Joint Tenants with Right of Survivorship and,not as Tenants in Common, "GRANTEES". WITNESSETH, that in consideration of the sum of One ($1.00) Dollar, in hand paid, the receipt whereof is hereby acknowledged, the said Grantor does hereby grant and convey in fee simple to said Grantees, as Joint Tenanto with Right of Survivorship and not as Tenants in Common, ALL the following described real estate, together with the improvements erected thereon, lying and being situate in West Pennsboro Township, Cumberland County, Pennsylvania, more particularly bounded and described as follows: BEGINNING at a spike. in Township Road 437 and a fifty (50) foot proposed street; thence along proposed street, South twenty-eight (28) degrees zero (00) minutes East, two hundred twenty-five and sixty-four hundredths (225.64) feet to an iron pin at the corner of land of proposed street and lands now or formerly of Yinger: thence along lands now or formerly of Yinger, South EC!J JA.7 sixty-two (62) degrees zero (00) minutes West, one hundred ninety-five and zero hundredths (195.00) feet to an iron pin to the corner of Lot No. 10; thence along Lot No. 10, North twenty-eight (28) degrees zero (00) minutes West, two hundred twenty-two and eighty-five hundredths (222.85) feet to a spike in the center of the aforesaid Township Road 437; thence along the center of Township Road 437, North fifty-six (56) degrees thirty-three (33) minutes forty (40) seconds East, twenty-nine and forty- eight hundredths (29.48) feet to a spike; thence along the same, North sixty-two (62) degrees zero (00) minutes East, one hundred sixty-five and sixty-five hundredths (165.65) feet to the place of BEGINNING. CONTAINING 1.009 acres and being Lot No. 9 in subdivision laid out by Thomas Alvin Neff, R.S., dated May 30, 1975. BEING the premises conveyed by GLENN L. WAREHIME and DARLENE K. WAREHIHE, his wife, by deed dated August 9, 1976 and recorded in the Office of the Recorder of Deeds of Cumberland County, Pennsylvania, in Deed Book S, Volume 26, Page 817, unto STANLEY R. WARFEL and RUTH E. WARFEL, his wife.• RUTH E. WARFEL died on November 29, 1977, vesting full fee ownership in STANLEY R. WARFEL, the grantor herein. AND, the said Grantor hereby warrants specially the property herein conveyed. IN WITNESS WHEREOF, the said Grantor does hereby set his hand and seal the day and year first above written. Witness; (SEAL) STANLEY RSJ WARFEL 2 C00z ;Li'l PAGEJO64 _ i STATS OF PENNSYLVANIA COUNTY OF CUMBERLAND On this the day of January, 1995, before me, the undersigned officer, personally appeared Stanley R. Warfel, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged the foregoing deed to be his act and deed and desired the same to be recorded as such. WITNESS my hand and official seal the day and year first above written. NOfARUU SF11L (tet S NMARTON C.DAV{9,Notary ou00e CnT � , Notary Publ c I do hereby certify that the precise residence and complete post office address of the within named Grantees is: 140 Lawrence Lane, Carlisle, PA 17013. A Zo 1995 Attorney for / jq if 5 n N 8¢ ��M u Fob y g 4 (u� VV np N � M F•1 r 3 Sent 12/18/2014 at 12:55:24 - from - 7172406354 to p1/4 County of Cumberland, Pennsylvania r \ �, 1 Courthouse Square Carlisle, Pennsylvania 17013 Voice: (717)-240-6100 iti , Toll Free: (888)-697-0371 www.ccpa.net FAX From: Stong,Melissa Department: Tax Assessment From Fax Number: 7172406354 To Fax Number: 93379211 Pages: 4 Date: 18 December 2014 14P 12:55 E-Mail Address: mstong@ccpa.net Department Phone Number: 717-240-6350 PRC Attn: John Wolfe Please see attachment from Bonnie Mahoney,regarding 2006 Assessment for 140 Lawrence Lane. Sent 12/18/2014 at 12:56:30 - from - 7172406354 to p3/4 ; v Q; >-; 1 ^e > ^S i X, z M Gk M 3 u; !w 4) N Lu 3A ;J [•; ;;s F+• a iS•? y; t fR ry !L N• >. LF .. '! �,' e3 %� ts'�'• L^, 'v7 2tt ;i 7� 'ti r4 r� f�t �) 3's t.:. %k 'i? U �3 >.' 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'ZI Q t 9 6) It sw CA 1.5 zi This LIVING TRUST prepared for STANLEY R..WARFEL and JOYCE A.MINNICH by Charles Allen Stambaugh, III Attorney and Counsellor at Law 200 Butler Avenue Lancaster,Pennsylvania 17601 Telephone: {717}390-0390 Copyright@ 2002 Charles Allen Stambaugh,III • Table of Contents The STANLEY R. WARFEL AND JOYCE A. MINNICH Living Trust Introduction Article One .......................................Creation of Our Trust Article Two.......................................Our Family Article Three ....................................Funding Our Trust Providing for Us and Our Family during Our Lifetimes Article Four......................................Administration of Our Trust during Our Lives Providing for Us and Our Family upon Our Deaths Article Five .......................................Administration of Our Trust upon the Death of a Trustmaker Article Six..........................................Distribution of Our Tangible Personal Property and Specific Distributions Article Seven.....................................The Marital Trust Article Eight.....................................The Common Trust Article Nine ......................................Distribution of Our Trust Property Article Ten........................................Final Distribution Pattern i • Article Eleven...................................Methods of Distribution and Trust Administration with Regard to Minor and Disabled Beneficiaries Provisions Regarding Our Trustee Article Twelve...................................The Resignation, Replacement, and Succession of Our Trustees General and Administrative Provisions Article Thirteen................................General Matters and Instructions with Regard to the Trusteeship Article Fourteen...............................Definitions and General Provisions ii 0 The STANLEY R. WARFEL AND JOYCE A. MINNICH Living Trust Article One Creation of Our Trust Section 1. Our Trust Although we have never been formally married,we hold ourselves out as and consider ourselves husband and wife. This is our Living Trust, dated February 13, 2002, by STANLEY R. WARFEL, the husband Trustmaker, JOYCE A. MINNICH, the wife Trustmaker, and the following initial Trustees: STANLEY R. WARFEL JOYCE A. MINNICH Our trust is a joint revocable living trust that contains our instructions for our own well-being and that of our loved ones. All references to "our trust" or "trust," unless otherwise stated, shall refer to this Living Trust and the trusts created in it. All references to "Trustee" shall refer to our initial Trustee or Trustees, or their successor or successors in trust. When the term"Trustmaker" is used in our trust, it shall have the same legal meaning as "Grantor," "Settlor," "Trustor," or any other term referring to the maker of a trust. Section 2. The Name of Our Trust For purposes of beneficiary designations and transfers directly to our trust, our trust shall be referred to as: STANLEY R. WARFEL and JOYCE A. MINNICH, Trustees, or their successors in trust, under the STANLEY R. WARFEL AND JOYCE A. MINNICH LIVING TRUST, dated February 13, 2002, and any amendments thereto. 1-1 0 or STANLEY R. WARFEL and JOYCE A. MINNICH, Trustees under the STANLEY R. WARFEL AND JOYCE A. MINNICH LIVING TRUST, dated February 13, 2002. In addition to the above descriptions, any description for referring to our trust shall be effective to transfer title to our trust or to designate our trust as a beneficiary so long as that format indicates that assets are to be held in a fiduciary capacity. When titling assets in the name of our trust, our initial Trustees may be referred to as: STANLEY R. WARFEL and JOYCE A. MINNICH STANLEY R. WARFEL or JOYCE A. MINNICH Section 3. Consent of Our Initial Trustees Despite any conflicting provision in our trust, when we are serving as Trustees under our trust, either of us may: act for and conduct business on behalf of our trust as a Trustee without the consent of any other Trustee; and enter into written agreements with third parties authorizing any Cotrustee to .act for and conduct business on behalf of our trust without our consent. Section 4. No New Tax Identification Number for Our Trust Pursuant to federal income tax law, our trust is a "grantor" trust and is not required to have a separate identification number as.long as one of us is- serving as a Trustee. The identification number for our trust is our own social security numbers (See IRC Regulation 1.671-3(a)(1)). 1-2 i Section 5. Income Taxes Filed on Our Personal Form 1040 Pursuant to federal income tax law, we are treated as the owners.of our trust for tax reporting purposes because we have retained control of the assets transferred to our trust (See IRC Sections 674-677). Also, federal income tax law specifically states that a trust income tax return should not be filed, and all income should be reported on our personal 1040 income tax return (See IRC Regulation 1.671-4). 1-3 Article Two Our Family We have no living children. The names and birth dates of the children of JOYCE A. MINNICH are: CAROL A. BARRICK,born December 31, 1956 DONNA M. STINSON,born April 22, 1959 TERESA L. BAKER,born December 10, 1960 WILLIAM G. BAKER, III,born May 11, 1962 ROBERT E. BAKER,born February 2, 1965 All references to our children in this agreement are to these children, as well as any children subsequently born to us, or legally adopted by us. 2-1 Article Three Funding Our Trust Section 1. Initial Funding We hereby fund our trust with $10, and transfer, assign, and convey all of our right, title, and interest in and to all of our property that is permitted by law to be held in trust to our Trustee to hold and administer for our benefit and for the benefit of our beneficiaries pursuant to the terms of this trust. a. Reliance by Third Parties All third parties shall rely on this transfer and all other transfers of our property to our trust, and follow all of our Trustee's instructions without risk of incurring any liability to us, our Trustee, or our beneficiaries. b. Additional Transfers of Property Our trust may be additionally funded with property interests of all kinds by either of us or by any other person in any manner. All property interests assigned, conveyed, or delivered to our Trustee by parties other than us must be acceptable to our Trustee. Section 2. Funding with Community Property Any community property and the income and all other proceeds from such property, which is or becomes trust property shall remain community property during our lives. A transfer of community property to our trust shall not be construed as a partition of. the community property without our written consent to the contrary. Any separate property, and the income and all other proceeds from such property, which is or becomes trust property, shall remain the separate. property of a Trustmaker. 3-1 Article Four Administration of Our Trust during Our Lives Section 1. Our Lifetime Powers While we are both living,we shall have the following powers: a. Control and Direct Payments Our Trustee shall distribute or retain the principal and net income of the community estate, if any, as we may direct from time to time, except that we shall have no power to direct our Trustee to make gifts of principal or income from the community estate to a third party. Our Trustee shall distribute or retain the principal and net income of a Trustmaker's separate estate as that Trustmaker shall direct, except that a Trustmaker shall have no power to direct our Trustee to make gifts of principal or income from the Trustmaker's separate estate to a third party. Any gift made directly by our Trustee to a third party in violation of these provisions shall be construed as a distribution made directly to either or both of us, and then a gift from one or both of us to such third party. Absent directions from us, our Trustee shall distribute the trust income from the community estate, if any, at least monthly and shall distribute the trust income from a Trustmaker's separate estate to that Trustmaker at least monthly. b. Investment Decisions During our lifetime, except for any period of our incapacity, we individually reserve the right to specifically approve or disapprove each and every trust investment, purchase, or sale before it is made. 4-1 0 • Our Trustee is relieved from all liability for loss which may result from the purchase or sale of trust property which has been directed by either of us. c. Add or Remove Trust Property We shall have the absolute right, either individually or jointly, to add to the trust property at any time. A Trustmaker shall also have the absolute right to remove his or her own separate property, in whole or in part, from the trust at any time. Both of these rights shall be exercised in writing. Each of us shall have the absolute right to remove as community property as much of our respective interests in the community estate, if any, as we shall request in writing at any time. d. Amend or Revoke the Trust We shall have the absolute right to amend or revoke our trust, in whole or in part, at any time. Any amendment or revocation must be in writing, signed by both of us, and delivered to our Trustee. This right to amend or revoke is personal to us and may not be exercised by a legal representative or agent acting on behalf of either of us. After the death of one of us, this agreement shall not be subject to amendment or revocation. Section 2. The Definition of Our Disability The disability of a Trustmaker, for purposes of this agreement, shall be defined as follows: a. Private Determination A Trustmaker shall be deemed disabled during any period when, in the opinion of the Trustmaker's Disability Panel, the Trustmaker is incapacitated or disabled because of illness, age, or any other cause which results in the Trustmaker's inability to effectively manage his or her property or financial affairs. 4-2 1. A Trustmaker's Disability Panel A Trustmaker's Disability Panel shall initially consist of the Trustmaker's primary care physician, an appropriate specialist recommended by the primary care physician and approved by the other Trustmaker, and the other Trustmaker. If the other Trustmaker predeceases, is under any form of legal disability, or is otherwise unable or unwilling to act, then the other Trustmaker shall be replaced with our then living children, if they are not under any form of legal disability or are otherwise unable or unwilling to act. If at any time a Trustmaker's Disability Panel consists solely of the primary care physician and specialist, then the Trustmaker's disability Trustees who are currently serving (or who would be entitled to serve if the Trustmaker was already declared disabled) shall be added to the Trustmaker's Disability Panel. A Trustmaker's Disability Panel shall continue to serve throughout any period of the Trustmaker's disability. Any person named in this Section may decline to serve as a member of a Trustmaker's Disability Panel, or decline to participate in making a determination of disability in a specific instance, by providing written notice to our Trustee. 2. Determination by the Disability Panel Any determination of a Trustmaker's disability shall be final, binding and controlling if made with the unanimous agreement of the Trustmaker's Disability Panel members. We authorize and encourage our panel members to consult with any other individuals they may consider necessary or advisable prior to making a determination regarding the disability of a Trustmaker. 4-3 3. Certificate of a Trustmaker's Disability The opinions of the members of a Trustmaker's Disability Panel shall be documented by signed,notarized certificates (the "Certificates"). The period of a Trustmaker's disability under this Section shall continue until the Certificates are revoked by the then serving members of the Trustmaker's Disability Panel. Any revocation shall be documented by signed, notarized statements. A panel member shall not be liable to us, our Trustee, or any other beneficiary of our trust for any decision regarding the determination of a Trustmaker's disability under this Section, if the panel member made the decision in good faith. b. Court Determination A Trustmaker shall also be deemed to be disabled upon the determination of a court of competent jurisdiction that the Trustmaker is incompetent, incapacitated,' or otherwise legally unable to effectively manage his or her property or financial affairs. c. Detention, Disappearance or Absence A Trustmaker shall be deemed to be disabled if the Trustmaker is being detained under duress or upon the Trustmaker's unexplained . disappearance or absence for a continuous period of more than thirty(30)days. Section A Trustmaker's detention under duress, or disappearance or absence, may be established by an affidavit of the persons and/or institutions who would be entitled to serve as the Trustmaker's disability Trustee if the Trustmaker was already declared disabled. The affidavit shall describe the circumstances of the Trustmaker's detention under duress, or disappearance or absence. No third party who acts in reliance on the representations of a Trustmaker's disability Trustee or the authority granted under our trust shall incur any liability to us, our Trustee, or any other beneficiary of our trust as a result of permitting the Trustmaker's disability Trustee to exercise any power granted under our trust. 4-4 A Trustmaker's disability Trustee is authorized to execute documents necessary to persuade any third party to honor the authority of the Trustmaker's disability Trustee. 3. Discretionary Guidelines for Our Disability During any period of time when one or both of us are disabled, our Trustee shall apply the trust property, including its income, exclusively for our benefit and for our valid obligations by observing the following procedural guidelines: a. The Disability of One of Us Our Trustee shall provide as much of the principal and net income of a disabled Trustmaker's separate estate, and as much of the principal and net income of the disabled Trustmaker's share of the community estate, if any, as is necessary or advisable, in its sole and absolute discretion, for the health, support, maintenance, and general welfare of the disabled Trustmaker. In order to assist our Trustee in exercising its discretionary authority under this Paragraph, we leave the following instructions by way of illustration and not limitation: We wish to always remain as self sufficient as possible. Our Trustee shall consider the following preferences for living arrangements: It is our desire to remain in our residence as long as possible, even if either or both of our mental or physical conditions are such that we can no longer provide for ourselves. Our Trustee is authorized to hire companions, nurses or others necessary to provide for our needs. If, due to our mental or physical condition, it is no longer practical for either or both of us to live in our current residence, then it is our desire that our Trustee provide a more suitable residence for us. If it should become necessary for either or both of us to enter any hospice, nursing home,- 4-5 retirement center, convalescent home or similar establishment, it is our desire that the level of care provided be consistent with maintaining our maximum degree of independence. We direct our Trustee to always consult with the Health Care Agent appointed under a Trustmaker's Health Care Documents regarding the appropriate balance between quality of care and living arrangements and economic reality. We specifically authorize our Trustee to expend any principal and net income of our trust to accomplish these purposes. We wish to remain mentally and physically active as long as possible. We direct our Trustee to provide opportunities for us to engage in social, recreational, and sports activities, including travel, as our health permits. Such decisions shall be made after consultation with a Trustmaker's Health Care Agent. We further direct our Trustee to provide us with books, tapes, and similar materials consistent with our interests. It is our desire to provide for the presence and involvement in our care of religious clergy or spiritual leaders, provide them access to us at all times, maintain our memberships in religious or spiritual organizations, and enhance our opportunities to derive comfort and spiritual satisfaction from such activities, including religious books, tapes and other materials. We further direct our Trustee, in cooperation with a Trustmaker's Health Care Agent, to provide for companionship for us consistent with our needs and preferences. We consider such continuing interaction to be essential. We direct our Trustee to consult with a Trustmaker's .Health Care Agent regarding all costs of health care. Our Trustee shall only pay those costs incurred as a result of the decisions reached by our Trustee and a Trustmaker's Health Care Agent. Our Trustee, in its sole and absolute discretion, is authorized to reimburse a Trustmaker's Health Care Agent for expenses incurred. 4-6 We further specifically prohibit our Trustee from expending any trust funds for medical treatment .considered "extraordinary" or "heroic" by a Trustmaker's Health Care Agent. The decision as to whether treatment shall be considered "extraordinary" or "heroic" shall be in the sole and absolute discretion of a Trustmaker's Health Care Agent, as guided by the instructions contained in a Trustmaker's Health Care Documents. We authorize our Trustee to make pre-need arrangements for us in accordance with a Trustmaker's Instructions for My Final Arrangements contained in our Estate Planning Portfolio. If a Trustmaker has not completed the Instructions for My Final Arrangements, we authorize our Trustee, after consultation with a Trustmaker's Health Care Agent, to make any pre-need arrangements considered necessary or appropriate. Finally, our Trustee shall consider any other written instructions dated and signed by either or both of us: Any . such instructions shall be incorporated by reference into this agreement. b. Provide for the Other Trustmaker During any period of time that one of us is disabled, our Trustee, in its sole and absolute discretion, shall provide as much of the principal and net income of the disabled Trustmaker's separate estate and as much of the principal and net income of the disabled Trustmaker's community estate, if any, as is necessary for the health, education, and maintenance, and support of the other Trustmaker. c. Provide for Our Obligations Our Trustee shall provide 'as much of the principal and net income of our trust as our Trustee, in its sole and absolute discretion, deems advisable for the payment of any valid obligations as confirmed by our Trustee: A payment shall be paid from any community estate, if an obligation of both of us, and out of a Trustmaker's separate share or out of a Trustmaker's share of the community estate, if.any, if an obligation of that Trustmaker. 4-7 Our Trustee shall provide as much of the principal and net income of our trust as our Trustee deems advisable for the payment of insurance premiums on policies owned by one of us, either directly or beneficially, or our trust. Our Trustee shall pay premiums for any life insurance policies that are the sole and separate property of one of us from that Trustmaker's sole and separate property. d. Distribution Priorities In making distributions under this Section, our Trustee shall, at all times, give primary consideration to the needs of the disabled Trustmaker and thereafter to the needs of the other Trustmaker. When making such distributions to the other Trustmaker, our Trustee shall consider other income and resources available to the other Trustmaker and that'are known to our Trustee. A distribution made to a Trustmaker shall not be charged against the ultimate share which may be distributable to the Trustmaker ,under any other provision of this agreement. e. Methods of Payment Our Trustee may make distributions to a Trustmaker under this Section in any one or more of the following ways: Directly to a Trustmaker. To persons, corporations, or other entities for the use and benefit of a Trustmaker. To any agent under a valid power of attorney. To any guardian or other person deemed by our Trustee to be responsible, and who has assumed the responsibility of caring for a Trustmaker. Section 4. Undistributed Net Income Any net income which is not distributed under this Article shall be accumulated and added to principal. 4-8 Article Five Administration of Our Trust upon the Death of a Trustmaker Section 1. Payment of Expenses, Claims, and Taxes Upon the death of a Trustmaker, our Trustee is authorized, but not directed, to pay the expenses of the last illness, funeral, and burial of a deceased Trustmaker, including memorials of all types and memorial services of such kind as our Trustee in its sole discretion shall approve. Our Trustee is also authorized to pay legally enforceable administration expenses and claims against the deceased Trustmaker or his or her estate, taxes, and any statutory or court-ordered allowances for qualifying family members. The payments authorized under this Section are discretionary, and no claims or right to payment by third parties shall be enforced against our trust by virtue of such discretionary authority. Our Trustee shall be indemnified from the trust property for any damages sustained by our Trustee as a result of its exercising, in good faith, the authority granted it under this Section. The payments authorized under.this Section shall be paid only to the extent that the deceased Trustmaker's probate assets (other than real estate, tangible personal property, or property that, in our Trustee's judgment, is not readily marketable) are insufficient to make these payments. Section 2. Coordination with the Personal Representative This Section shall be utilized to help facilitate the coordination between our Trustee and the personal representative of the deceased Trustmaker's probate estate, if any. 5-1 a. Authorized Payments Our Trustee, in its sole and absolute discretion, may elect to make the payments authorized under this Article either directly to the appropriate persons or institutions or to the personal representative of the deceased Trustmaker's probate estate. Our Trustee may rely upon the written statements of the deceased Trustmaker's personal representative as to all material facts relating to these payments. b. Purchase of Assets and Loans Our Trustee is authorized to purchase and retain in the form received, as an addition to our trust, any property which is a part of the deceased Trustmaker's probate estate. In addition, our Trustee may make loans, with or without security, to the deceased Trustmaker's probate estate. Our Trustee shall not be liable for any loss suffered by our trust as a result of the exercise of these powers. c. Distributions from the Personal Representative Our Trustee is authorized to accept distributions from the personal representative of the deceased Trustmaker's probate estate without audit and shall be under no obligation to examine the records or accounts of the personal representative. d. Distributions to the Personal Representative Our Trustee, in its sole and absolute discretion, may make distributions of any or all of the trust property to our personal representative in order to fund any testamentary trust created under our Last Will and Testament. In lieu of distributing such property to our personal representative, our Trustee may distribute such property to the Trustee designated in such testamentary trust. Section 3. Apportionment All expenses, claims, and death taxes resulting from the death of a Trustmaker shall be paid without apportionment and without reimbursement from any person, except as otherwise specifically provided in this trust. 5-2 Notwithstanding anything to the contrary in our trust, all expenses, claims, and death taxes assessed with regard to property passing outside of our trust or outside of our probate estates, shall be chargeable against the persons receiving such property. 5-3 Article Six Distribution of Our Tangible Personal Property and Specific Distributions Section 1. Nonbusiness Tangible Personal Property On the death of each of us, our Trustee shall distribute the nonbusiness tangible personal property belonging to the deceased Trustmaker as follows: a. Use of Memorandum Our Trustee shall distribute the jewelry, clothing, household furniture, furnishings and fixtures, chinaware, silver, photographs, works of art, books, boats, automobiles, sporting goods, artifacts relating to the hobbies of the deceased Trustmaker, and all other tangible articles of household or personal use in accordance with any written, signed, and dated memorandum left by the deceased Trustmaker directing the distribution of such property. Any memorandum written, dated, and signed by the deceased Trustmaker disposing of nonbusiness tangible personal property shall be incorporated by reference into this agreement. Should the deceased Trustmaker leave multiple written memoranda which conflict as to the disposition of any item of nonbusiness tangible personal property, that memorandum which is last dated shall control as to those items which are in conflict. b. Distribution of Property Not Distributed by Memorandum If state law does not allow the use of a memorandum to distribute nonbusiness tangible personal property or, to the extent that a Trustmaker's nonbusiness tangible personal property which is or becomes trust property is not disposed of by memorandum for any reason, then that nonbusiness tangible personal property shall be distributed under the terms of this trust agreement. 6-1 Section 2. Business Tangible Personal Property The disposition of the tangible personal property under this Article shall not include tangible personal property which our Trustee, in its sole and absolute discretion, determines to be part of or used exclusively in any business or profession in which the deceased Trustmaker had an interest at the time of death. 6-2 Article Seven The Marital Trust Section 1. Creation of the Marital Trust If, upon the death of one of us the other Trustmaker is living, the trust property not previously distributed under this agreement shall be held and administered in a Marital Trust for the benefit of the surviving Trustmaker. Section 2. Administration of the Marital Trust The Marital Trust shall be held and administered as follows: a. The Surviving Trustmaker's Right to Income i Our Trustee shall pay to or apply for the benefit of the surviving Trustmaker, at least monthly during the lifetime of the surviving Trustmaker, all of the net income from the Marital Trust. b. The Surviving Trustmaker's Right to Principal Our Trustee shall pay to or apply for the benefit of the surviving Trustmaker such amounts from the principal of the Marital Trust as the surviving Trustmaker may request at any time in writing. No limitation shall be placed on the surviving Trustmaker as to the amount of or reason for such request. c. Principal Distributions in Our Trustee's Discretion Our Trustee may also distribute to or for the benefit of the surviving Trustmaker as much of the principal of the Marital Trust as our Trustee, in its sole and absolute discretion, shall consider necessary or advisable for the surviving Trustmaker's health, education, support, and maintenance. 7-1 d. The Surviving Trustmaker's General Power of Appointment The surviving Trustmaker shall have the unlimited and unrestricted general power to appoint, by a valid last will and testament or by a valid living trust agreement, the entire principal and any accrued and undistributed net income of the Marital Trust as it exists at the Trustmaker's death. In exercising this general power of appointment, the surviving Trustmaker shall specifically refer to this power. The surviving Trustmaker shall have the sole and exclusive right to exercise the general power of appointment. This general power of appointment specifically grants to the surviving Trustmaker the right to appoint property to the surviving Trustmaker's own estate. It also specifically grants to the surviving Trustmaker the right to appoint the property among persons, corporations, or other entities in equal or unequal proportions, and on such terms and conditions, whether. outright or in trust, as the surviving Trustmaker may elect. Section 3. Termination of the Marital Trust The Marital Trust shall terminate upon the death of the surviving Trustmaker. The unappointed balance of- the Marital Trust shall be distributed and administered as provided in Article Eight. 7-2 Article Eight The Common Trust It is not our desire to create a Common Trust for the benefit of our children. Upon the death of the second Trustmaker to die, all of the trust property which has not been distributed under prior provisions of this agreement shall be divided, administered, and distributed under the Articles that follow. 8-1 Article Nine Distribution of Our Trust Property Section 1. Division into Separate Shares All trust property not previously distributed under the terms of our trust shall be divided as follows: Beneficiary Relationship Share CAROL A. BARRICK DAUGHTER 12% DONNA M. STINSON DAUGHTER 12% TERESA L. BAKER DAUGHTER 12% WILLIAM G. BAKER,III SON 12% ROBERT E. BAKER SON 12% CATHY L. BAKER DAUGHTER-IN-LAW 12% JOSEPH L. BARRICK, JR. GRANDSON 4.67% JEREMY E. MIXELL GRANDSON 4.67% KATARA M. BAKER GRANDDAUGHTER 4.67% RYAN W. BAKER GRANDSON 4.67% KAILEY A. MIXELL GREAT-GRANDDAUGHTER 4.67% KADE A. MIXELL .GREAT-GRANDSON 4.67% 9-1 • 0 Section 2. Distribution of Trust Shares for Our Living Beneficiaries The share of each Beneficiary who survives us shall be distributed as follows: a. Distribution of Trust Share for CAROL A. BARRICK The trust share set aside for CAROL A. BARRICK shall forthwith terminate and our Trustee shall distribute all undistributed net income and principal to CAROL A. BARRICK,free of the trust. If CAROL A. BARRICK should die before the complete distribution of her trust share, her trust shall terminate and our Trustee shall distribute the balance of the trust property to her then living descendants,per stirpes. If CAROL A. BARRICK has no then living descendants, our Trustee shall distribute the balance of the trust property to our then living descendants,per stirpes. If we have no then living descendants, our Trustee shall distribute the balance of the trust property as provided in Article Ten of this agreement. b. Distribution of Trust.Share for DONNA M. STINSON The trust share set aside for DONNA M. STINSON shall forthwith terminate and our Trustee shall distribute all undistributed net income and principal to DONNA M. STINSON,free of the trust. If DONNA M. STINSON should die before the complete distribution of her trust share, her trust shall terminate and our Trustee shall distribute the balance of the trust property to her then living descendants, per stirpes. If DONNA M. STINSON has no then living descendants, our Trustee shall distribute the balance of the trust property to our then living descendants, per stirpes. If we have no then living descendants, our Trustee shall distribute the balance of the trust property as provided in Article Ten of this agreement. 9-2 c. Distribution of Trust Share for TERESA L. BAKER The trust share set aside for TERESA L. BAKER shall forthwith terminate and our Trustee shall distribute all undistributed net income and principal to.TERESA L. BAKER, free of the trust. If TERESA L. BAKER should die before the complete distribution of her trust share, her trust shall terminate and our Trustee shall distribute the balance of the trust property to her then living descendants, per stirpes. If TERESA L. BAKER has no then living descendants, our Trustee shall distribute the balance of the trust property to our then living descendants,per stirpes. If we have no then living descendants, our Trustee shall distribute the balance of the trust property as provided in Article Ten of this agreement. d. Distribution of Trust Share for WILLIAM G. BAKER,III The trust share set aside for WILLIAM G. BAKER, III shall forthwith terminate and our Trustee shall distribute all undistributed net income and principal to WILLIAM G. BAKER, III,free of the trust. If WILLIAM G. BAKER, III should die before the complete distribution of his trust share, his trust shall terminate and our Trustee.shall distribute the balance of the trust property to his then living descendants, per stirpes. If WILLIAM G. BAKER, III has no then living descendants, our Trustee shall distribute the balance of the trust property to our then living descendants, per stirpes. If we have no then living descendants, our Trustee shall distribute the balance of the trust property as provided in Article Ten of this agreement. 9-3 0 e. Distribution of Trust Share for ROBERT E.BAKER The trust share set aside for ROBERT E. BAKER shall forthwith terminate and our Trustee shall distribute all undistributed net income and principal to ROBERT E. BAKER,free of the trust. If ROBERT E..BAKER should die before the complete distribution of his trust share, his trust shall terminate and our Trustee shall distribute the balance of the trust property to his then living descendants,per stirpes. If ROBERT E. BAKER has no then living descendants, our Trustee shall distribute the balance of the trust property to our then living descendants,per stirpes. If we have no then living descendants, our Trustee shall distribute the balance of the trust property as provided in Article Ten of this agreement. f. Distribution of Trust Share for CATHY L.BAKER The trust share set aside for CATHY L. BAKER shall forthwith terminate and our Trustee shall distribute all undistributed net income and principal to CATHY L. BAKER, free of the trust. If CATHY L. BAKER should die before the complete distribution of her trust share, her trust shall terminate and our Trustee shall distribute the balance of the trust property to her then living descendants, per stirpes. If CATHY L. BAKER has no then living descendants, our Trustee shall distribute the balance of the trust property to our then living descendants, per stirpes. If we have no then living descendants, our Trustee shall distribute the balance of the trust property as provided in Article Ten of this agreement. 9-4 g. Distribution of Trust Share for JOSEPH L. BARRICK,JR. The trust share set aside for JOSEPH L. BARRICK, JR. shall forthwith terminate and our Trustee shall distribute all undistributed net income and principal to JOSEPH L. BARRICK, JR.,free of the trust. If JOSEPH L. BARRICK, JR. should die before the complete distribution of his trust share, his trust shall terminate and our Trustee shall distribute the balance of the trust property to his then living' descendants, per stirpes. If JOSEPH L. BARRICK, JR. has no then living descendants, our Trustee shall distribute the balance of the trust property to our then living. descendants, per stirpes. If we have no then living descendants, our Trustee shall distribute the balance of the trust property as provided in Article Ten of this agreement. h. Distribution of Trust Share for JEREMY E.MIXELL The trust share set aside for JEREMY E. MIXELL shall forthwith terminate and our Trustee shall distribute all undistributed net income and principal to JEREMY E. MIXELL,free of the trust. If JEREMY E. MIXELL should die before the complete distribution of his trust share, his trust shall terminate and our Trustee shall distribute the balance of the trust property to his then living descendants,per stirpes. If JEREMY E. MIXELL has no then living descendants, our Trustee shall distribute the balance of the trust property to our then living descendants,per stirpes. If we have no then living descendants, our Trustee shall distribute the balance of the trust property as provided in Article Ten of this agreement. 9-5 i. Distribution of Trust Share for KATARA M. BAKER The trust share set aside for KATARA M. BAKER shall forthwith terminate and our Trustee shall distribute all undistributed net income and principal to KATARA M. BAKER, free of the trust. If KATARA M. BAKER should die before the complete distribution of her trust share, her trust shall terminate and our Trustee shall distribute the balance of the trust property to her then living descendants,per stirpes. If KATARA M. BAKER has no then living descendants, our Trustee shall distribute the balance of the trust property to our then living descendants,per stirpes. If we have no then living descendants, our Trustee shall distribute the balance of the trust property as provided in Article Ten of this agreement. j. Distribution of Trust Share'for RYAN W.BAKER The trust share set aside for RYAN W. BAKER shall forthwith terminate and our Trustee shall distribute all undistributed net income and principal to RYAN W. BAKER, free of the trust. If RYAN W. BAKER should die before the complete distribution of his trust share, his trust shall terminate and our Trustee shall distribute the balance of the trust property to his then living descendants,per stirpes. If RYAN W. BAKER has no then living descendants, our Trustee shall distribute the balance of the trust property to our then living descendants, per stirpes. If we have no then living descendants, our Trustee shall distribute the balance of the trust property as provided in Article Ten of this agreement. 9-6 k. Distribution of Trust Share for KAILEY A. MIXELL The trust share set aside for KAILEY A. MIXELL shall forthwith terminate and our. Trustee shall distribute all undistributed net .. income and principal to KAILEY A. MIXELL,free of the trust. If KAILEY A. MIXELL should die before the complete distribution of her trust share, her trust shall terminate and our Trustee shall distribute the balance of the trust property to her then living descendants, per stirpes. If KAILEY A. MIXELL has no then living descendants, our Trustee shall distribute the balance of the trust property to our then living descendants,per stirpes. If we have no then living descendants, our Trustee shall distribute the balance of the trust property as provided in Article Ten of this agreement. 1. Distribution of Trust Share for KADE A.MIXELL The trust share set aside for KADE A. MIXELL shall forthwith terminate and our Trustee shall distribute all undistributed net income and principal to KADE A. MIXELL,free of the trust. If KADE A. MIXELL should die before the complete distribution of his trust share, his trust shall terminate and our Trustee shall distribute the balance of the trust property to his then living descendants,per stirpes. If KADE A. MIXELL has no then living descendants, our Trustee shall distribute the balance of the trust property to our then living descendants,per stirpes. If we have no then living descendants, our Trustee shall distribute the balance of the trust property as provided in Article Ten of this agreement. 9-7 Section 3. Share of a Descendant of a Deceased Beneficiary Each share set aside for a deceased Beneficiary, if any, who has then living descendants shall be divided, administered, and distributed as follows: a. Division into Separate Shares The share set aside for a deceased Beneficiary shall be divided into as many shares as shall be necessary to create one equal share for each of the deceased Beneficiary's descendants,per stirpes. b. Outright Distribution If any descendant of a deceased-beneficiary is over 21 years of age and is not legally incapacitated, our Trustee shall distribute that descendant's share outright to that descendant. c. Retention of a Minor's or Disabled Descendant's Share in Trust If any descendant of a deceased Beneficiary is under 21 years of age, or if any descendant of a deceased Beneficiary is disabled or incapacitated as defined in Article Fourteen of.this agreement, then our Trustee shall retain such share in trust under the provisions of Article Eleven. Section 4. Retention of Distributions in Trust Whenever a distribution is authorized or required to be made by a provision of this Article' (o- or any subsequent Article of our trust) to any beneficiary under the age of 21, our Trustee shall retain such distribution in trust in accordance with Article Eleven of this agreement. 9-8 Article Ten Ultimate Distribution Pattern If at any time there is no person, corporation, or other entity entitled to receive all or any part of the trust property of one of us: One-half of the trust property shall be distributed to those persons who would be the wife Trustmaker's heirs had she died intestate owning such.property. The balance of the property shall be distributed to those persons who would be. the husband Trustmaker's heirs had he died intestate owning such property. The distribution of trust property, for purposes of this Article, shall be determined by the laws of descent and distribution for intestate estates in the State of Pennsylvania as such laws are in effect at the time of any distribution under this Article. 10-1 Article Eleven Methods of Distribution and Trust Administration with Regard to Minor and Disabled Beneficiaries Section 1. General Guidelines for Distribution Whenever a distribution is authorized or required to be made by a provision of this agreement to any beneficiary who is a minor, disabled or incapacitated, such distribution may be made by our Trustee: Without continuing court supervision or the intervention of a guardian, conservator, or any other legal representative. Without giving or requiring any bond or surety on bond. Pursuant to any of the methods authorized under this Article. In making distributions under this Article, disability or incapacity shall include adjudicated mental incapacity by a court of competent jurisdiction, or incapacity because of age, illness, injury or any other cause as determined pursuant to the terms of this agreement. Before making any distributions to beneficiaries, other than a Trustmaker, under this Article, it is our desire that our Trustee, to the extent that it is both reasonable and possible: Inquire into the ultimate disposition of the distributed funds. Take into consideration the behavior of trust beneficiaries with regard to their disposition of prior distributions of trust property. Our Trustee shall obtain a receipt from the person, corporation, or other entity receiving-any distribution called for in this Article. 11-1 Section 2. Methods of Payment Our Trustee may make the distributions called for in this Article in any one . or more of the following ways: Directly to a beneficiary. To persons, corporations, or other entities for the use and benefit of the beneficiary. To an account in a commercial bank or savings institution in the name of the beneficiary, or in a form reserving the title, management, and custody of the account to a .suitable person, corporation, or other entity for the use and benefit of the beneficiary. In any prudent form of annuity purchased for the use and benefit of the beneficiary. To any person or duly licensed financial institution, including our Trustee, as a custodian under the Uniform Transfers to Minors Act, or any similar act, of any state, or in any manner allowed by any state statute dealing with gifts or distributions to minors or other individuals under a legal disability. To any agent under a valid power of attorney. To any guardian, or other person deemed by our Trustee to be responsible, and who has assumed the responsibility of caring for the beneficiary. Section 3. Our Trustee's Discretion to Keep Property in Trust Our Trustee shall have the authority to retain a beneficiary's share in trust as follows: a. Disabled Beneficiary If any trust property becomes distributable to a beneficiary when the beneficiary is under any form of legal disability, as defined in Article Fourteen, our Trustee may retain that beneficiary's share in a separate trust as follows: 11-2 1. Income and Principal Distributions in Our Trustee's Discretion Our Trustee shall apply to or for the benefit of the beneficiary as much of the net income and principal of the trust share as our Trustee, in its sole and absolute discretion, deems necessary or advisable for the beneficiary's health, education, and maintenance. Any net income not distributed to a beneficiary shall be accumulated and added to principal. 2. Guidelines for Discretionary Distributions In making any distributions of net income and principal under this Section, our Trustee shall be mindful of, and take into consideration to the extent it deems necessary, any additional sources of income and principal available to the beneficiary which arise outside of this agreement. 3. Special Instructions for Disability Due to Addictive Situations Prior to making any distribution authorized under this paragraph a., or as a condition for further distributions, our Trustee may require that a beneficiary disabled due to a drug, alcohol, gambling, chemical or other dependency disorder, participate in or complete a rehabilitation program aimed at combating the problem involved. Our Trustee, in its sole and absolute discretion, may determine the nature and extent of the rehabilitative program, including follow up requirements. We direct that our Trustee consult with counsellors from rehabilitative programs through Charter Hospital, Fairbanks Hospital, or similar institutions, in order to best design an individualized program for the beneficiary. We specifically authorize and direct our Trustee to pay the expenses of rehabilitation for the beneficiary from the trust property. 11-3 4. Termination and Distribution Our Trustee shall terminate the trust share and distribute the trust property to the beneficiary when he or she ceases to be disabled. b. Minor Beneficiary If any trust property becomes distributable to a beneficiary when the beneficiary is under 21 years of age, our Trustee shall retain that beneficiary's share in a separate trust, as follows: 1. Income and Principal Distributions-in Our Trustee's Discretion Our Trustee shall apply .to or for the benefit of the beneficiary as much of the net income and principal of the trust share as our Trustee, in its sole and absolute discretion, deems necessary or advisable . for the beneficiary's health, education, and maintenance. Any net income not distributed to a beneficiary shall be accumulated and added to principal. 2. Guidelines for Discretionary Distributions In making any distributions of net income and principal under this Section, our Trustee shall be mindful of, and take into consideration to the extent it deems necessary, any additional sources of income and principal available to the beneficiary which arise outside of this agreement. 3. Rights to Withdraw by the Beneficiary When the beneficiary reaches the age of 21 (or upon the funding of the trust share if the beneficiary has already attained the age of 21), our Trustee shall distribute to the beneficiary, free of the trust, such amounts from the trust share as the beneficiary may at any time request in writing, not to exceed ONE-THIRD (1/3) of the trust share accumulated net income and principal, as it is then constituted. 11-4 In addition to the amounts available to the beneficiary, as described in the above subparagraph, FIVE (5)years from the date of the funding of the trust share, our Trustee shall distribute to the beneficiary, free of the trust, such amounts from the trust share as the beneficiary may at any time request in writing, not to exceed ONE-HALF (1/2) of the remaining trust share accumulated net income and principal, as it is then constituted. TEN (10) years from the date of the funding of the trust share, our Trustee shall distribute to the beneficiary, free of the trust, such amounts from the entire trust share as the beneficiary may at any time request in writing. No limitation shall be placed on the beneficiary as to either the amount of or the reason for the invasion of income or principal available to the beneficiary upon written request, as described in this paragraph b. The right to withdraw income and principal described in this paragraph b. is personal to the beneficiary and may not be exercised by anyone other than the beneficiary, including without limitation, any legal representative, agent or creditor. Further, this right to withdraw can only be exercised during any period when the beneficiary is not disabled, as defined in Article Fourteen. c. Special Needs Beneficiary If trust property becomes distributable to any beneficiary when the beneficiary is under any form of legal disability;as defined in Article Fourteen, and when the beneficiary is or would be eligible for public assistance benefits but for the distribution provided for in this agreement (as determined in the sole and absolute discretion of our Trustee), our Trustee shall retain that beneficiary's share in a separate trust, as follows: 1. Income and Principal Distributions in Our Trustee's Discretion Our Trustee shall apply to or for the benefit of the beneficiary as much of the net.income and principal of the trust share as our Trustee, in its sole and absolute discretion, deems necessary or advisable for the special 11-5 needs of the beneficiary which are not otherwise provided by governmental financial assistance and benefits, or by the providers of services. Any net income not distributed to the beneficiary shall be accumulated and added to principal. 2. Distributions for Special Needs "Special needs" refer to the requisites for maintaining the good health, safety, and welfare of the beneficiary when, in the discretion of our Trustee, such requisites are not being provided by any public agency, office, or department of any state or of the United States. "Special needs" shall also include, but not be limited to,. medical . and dental' expenses, annual independent checkups, clothing and equipment, programs of training, education, treatment and rehabilitation, private residential care, transportation (including vehicle purchase), maintenance, insurance, and essential dietary needs. "Special needs". may include spending money; additional food; clothing; electronic equipment such as radios, record players, television sets, computer equipment; camping; vacations; athletic contests; movies; trips; and money to purchase appropriate.gifts for relatives and friends. 3. Supplemental Nature of the Trust Our Trustee shall have no obligation to expend trust assets for such needs, but if our Trustee, in its sole discretion, decides to expend trust assets, under no circumstances should any amounts be paid to, or reimbursed to, the federal government, any state, or any governmental agency for any purpose, including for the care, support, and maintenance of the beneficiary. Because the beneficiary is dependent on the support and aid of others, our Trustee shall, in the exercise of its best judgment and fiduciary duty, seek support and maintenance for the be from all available public resources including, but not limited to, Social Security Administration benefits, Supplemental Security' Income (SSI), U.S..Civil Service Commission benefits, Medicaid; 11-6 and Federal Social Security Disability Insurance (SSDI), and any other comparable programs, state, federal, .or local. If necessary, our Trustee may seek appropriate authority to collect, expend, and account for separately all such governmental assistance benefits, but shall not commingle them with these trust assets. In addition, in making distributions for the special needs of the beneficiary, our Trustee shall take into consideration the applicable resource limitations of the public assistance programs for which the beneficiary is eligible. No part of the trust share set aside for the beneficiary shall be used to supplant or replace public assistance benefits of any state or federal agency which has a legal responsibility to serve persons with illnesses or handicaps which are the same as or similar to the disorders of the beneficiary. 4. Protection of the Trust Property No interest in the principal or income of the trust share set aside for the beneficiary shall be anticipated, assigned, or encumbered, or shall be subject to any creditor's claim or to legal process, prior to its actual receipt by the beneficiary. The beneficiary is specifically prohibited from any right to receive, demand, secure, give, assign, transfer, mortgage, borrow against, or will any trust assets or income. It is our intention to conserve and maintain this trust share for the special needs of the beneficiary. Therefore, no part of this trust share, neither principal nor undistributed net income, shall be subject to the claims of voluntary or involuntary creditors for the provisions of care and services, including residential care, by any public entity, office, department, or agency of any state or government agency, or of the federal government of the United States. 5. Early Termination of the Trust In the event that it is determined by either a court or an authority of competent jurisdiction that these trust assets render the beneficiary ineligible to receive any 11-7 governmental assistance benefits, or.if our Trustee, in its sole and absolute discretion, determines that, notwithstanding the provisions set forth above, this trust share may be subject to garnishment, attachments, execution or bankruptcy proceedings by a creditor of the beneficiary or by the federal or state government, or any agency or subdivision thereof, then our Trustee shall terminate the trust share set aside for the beneficiary and distribute the remaining principal and accrued income to the then living descendants of the beneficiary,per stirpes. If the beneficiary has no then living descendants, our Trustee shall distribute the remaining trust property to our then living descendants,per stirpes. If we have no then living descendants, our Trustee shall distribute the remaining trust property as provided in Article Ten of this agreement. We request, but do not direct, that the beneficiaries conserve, manage, and distribute the proceeds of the former trust share set aside for the beneficiary in accordance with the provisions as set forth above. 6. Authority of Our Trustee to Initiate Legal Proceedings In determining whether the existence of the trust share has the effect of rendering the beneficiary ineligible to receive any governmental assistance benefits, our Trustee is hereby granted full and complete discretion to initiate administrative or judicial proceedings for the purpose of determining eligibility. All costs related thereto, including reasonable attorney's fees, shall be a proper charge to the trust share of-the beneficiary. d. A Beneficiary's General Testamentary Power of Appointment If a beneficiary should die before the complete distribution of his or her trust property under this Section, the beneficiary shall have the unlimited and unrestricted general testamentary power to appoint 11-8 the entire principal and any accrued and undistributed net income of the trust as it exists at the beneficiary's death. The beneficiary shall exercise this general power of appointment by a valid last will and testament, a valid living trust agreement, or any other notarized written instrument signed by the beneficiary. In exercising this general power of appointment, the beneficiary shall specifically refer to this power. The beneficiary shall have the'sole and exclusive right to exercise this general power of appointment. This general power of appointment specifically grants to the beneficiary the right to appoint property to the beneficiary's own estate. It also specifically grants to the beneficiary the right to appoint the property among persons, corporations, or other entities in equal or unequal proportions, and on such terms and conditions, whether outright or in trust, as the beneficiary may elect. Any property in the trust which is not distributed pursuant to the exercise of the general power of appointment shall be distributed to the beneficiary's then living descendants, per stirpes. c If the beneficiary has no then living descendants, our Trustee shall distribute the remaining trust property to our then living descendants,per stirpes. If we have no then living descendants, our Trustee shall distribute the remaining trust property as provided in Article Ten of this agreement. e. Conflict with Previous Trust Provisions Our Trustee shall have no power and shall not exercise discretionary authority under this Article in any manner which would disqualify property passing to the Marital Trust for the federal estate tax marital deduction in my estate. 11-9 Article Twelve The Resignation, Replacement, and Succession of Our Trustees Section 1. The Resignation of a Trustee Any Trustee may resign by giving thirty days' written notice to each of us or to our respective legal representatives. If either of us is not living, the notice shall be delivered to the Trustee, if any, and to all of the beneficiaries then eligible to receive mandatory or discretionary distributions of net income from any trust created under this agreement. If a beneficiary is a minor or is legally incapacitated, the notice shall be delivered to that beneficiary's guardian or other legal representative. Section 2. The Removal of a Trustee Any Trustee may be removed as follows: a. Removal by Us We reserve the right to remove any Trustee at any time, but only if we both agree. b. Removal by One of Us After one of us dies or during any period that one of us is disabled and the other Trustmaker is living and is not disabled, the surviving nondisabled Trustmaker may remove any Trustee. c. Removal by Other Beneficiaries After the death or incapacity of both of us, a majority of the beneficiaries then eligible to receive mandatory or discretionary 12-1 distributions of net income under this agreement may remove any Trustee. d. Notice of Removal Neither of us, nor any of our beneficiaries, need give any Trustee being removed any reason, cause, or ground for such removal. Notice of removal shall be effective when made in writing by either: Personally delivering notice to the Trustee and securing a written receipt, or Mailing notice in the United States mail to the last known address of the Trustee by certified mail, return.receipt requested. Section 3. Replacement of Trustees ( Trustees shall be replaced in the following manner: a. The Death or Disability of a Trustee While We Are Serving as Trustees We may serve as the only Trustees or we may name any number of Trustees to serve with us. If any of these other Trustees subsequently die, resign, become legally incapacitated, or are otherwise unable or unwilling to serve as a Trustee, we may or may not fill the vacancy, as we both agree. b. Disability Trustees of STANLEY R.WARFEL Upon the disability of STANLEY R. WARFEL, JOYCE A. MINNICH shall serve as disability Trustee. If the nondisabled Trustmaker is then serving as a Trustee, she shall continue to serve upon the disability of STANLEY R. WARFEL. If the disability Trustee is unwilling or unable to serve, or cannot continue to serve for any other reason, then the following shall be named as replacement disability Trustees in the order in which their names appear: 12-2 WILLIAM G. BAKER, III and CATHY L. BAKER. c. Disability Trustees of JOYCE A. MINNICH Upon the disability of JOYCE A. MINNICH, STANLEY R. WARFEL shall serve as disability Trustee. If the nondisabled Trustmaker is then serving as a Trustee, he shall continue to serve upon the disability of JOYCE A. MINNICH. If the disability Trustee is unwilling or unable to serve, or cannot continue to serve for any other reason, then the following shall be named as replacement disability Trustees in the order in which their names appear: WILLIAM G. BAKER, III and CATHY L. BAKER. d. Death Trustees of STANLEY R.WARFEL On the death of STANLEY R. WARFEL, JOYCE A. MINNICH acting as our death Trustee shall replace all of our initial Trustees, if they are then serving, or the disability Trustee, if she is then serving. If the surviving Trustmaker is then serving as a Trustee, she shall continue to serve upon the death of STANLEY R. WARFEL. If the death Trustee is unwilling or unable to serve as a death Trustee, or cannot continue to serve for any other reason, then the following shall be named as'successor death Trustees in the order in which their names appear: WILLIAM G. BAKER, III and CATHY L. BAKER. e. Death Trustees of JOYCE A. MINNICH On the death of JOYCE A. MINNICH, STANLEY R. WARFEL acting as our death Trustee shall replace all of our initial Trustees, if they are then serving, or all of the disability Trustees, if he is then serving. If the surviving Trustmaker is then serving as a Trustee, he shall continue to serve upon the death of JOYCE A. MINNICH. If the death Trustee is unwilling or unable to serve as a Trustee, or cannot continue to serve for.any other reason, then the following shall be named as successor death Trustees in the order in which their names appear: 12-3 0 • WILLIAM G. BAKER, III and CATHY L. BAKER. f. Successor Trustees If a successor Trustee is unwilling or unable to serve during the period in which a Trustmaker is disabled or after the death of a Trustmaker, the next following successor Trustee shall serve until the successor Trustees so named have been exhausted. A Trustee may be listed more than once in this Section or an initial Trustee may also be named as a disability Trustee or a Trustee who will serve at death. Naming a Trustee more than once is done as a convenience only and is not to be construed as a termination of that Trustee's trusteeship. g. Unfilled Trusteeship In the event no named Trustees are available, a majority of the beneficiaries then eligible to receive distributions of net income under this agreement shall forthwith name a Certified Public Accountant unrelated by blood or marriage to any beneficiary under this agreement (hereafter "CPA") or a corporate fiduciary as successor Trustee. Any CPA named trustee under this Section must maintain errors and omissions liability insurance covering service as trustee. If a majority of the beneficiaries then eligible to receive distributions of net income under this agreement cannot agree on a CPA or corporate fiduciary, any beneficiary can petition a court of competent jurisdiction, ex parte, to designate a CPA or corporate fiduciary as successor Trustee. The court that designates the successor Trustee shall not acquire any jurisdiction over any trust created under this agreement, except to the extent necessary to name a CPA or a corporate fiduciary as successor Trustee. Section 4. Corporate Fiduciaries Any corporate fiduciary named in this trust agreement or appointed by a court of competent jurisdiction as a Trustee must be a bank or trust company 12-4 situated in the United States having trust powers under applicable federal or state law. Such fiduciary shall have either a combined capital and surplus of at least 25 million dollars or assets under management of at least 100 million dollars. Section 5. Powers and Liabilities of Successor Trustee Except as otherwise provided in this agreement, any successor Trustee, whether corporate or individual, shall have all of the rights, powers, and privileges, and be subject to all of .the obligations and duties, both discretionary and ministerial, as given to the original Trustees. Any successor Trustee shall be subject to any restrictions imposed on the original Trustees. No successor Trustee shall be required to examine the accounts,records, and acts of any previous Trustees. No successor Trustee shall in any way be responsible for any act or omission to act on the part of any previous Trustees. 12-5 Article Thirteen General Matters and Instructions with Regard, to the Trusteeship Section 1. Use of"Trustee" Nomenclature As used throughout this agreement, the word "Trustee" shall refer to our initial Trustee as well as any single, additional, or successor Trustees. It shall also refer to any individual, corporation, or other entity acting as a replacement, substitute, or added Trustee. Section 2. No Requirement to Furnish Bond (' Our Trustee shall not be required to furnish a bond for the faithful performance of its duties. If a bond is required by any law or court of competent jurisdiction, it is our desire that no surety be required on such bond. Section 3. Court Supervision Not Required All trusts created under this agreement shall be administered free from the active supervision of any court. Any proceedings to seek judicial instructions or a judicial determination shall be initiated by our Trustee in the appropriate state court having original jurisdiction of those matters relating to the construction and administration of trusts. 13-1 Section 4. Our Trustee's Responsibility to Make Information Available to Beneficiaries Each beneficiary shall receive at least annually from our Trustee a complete statement of all receipts, disbursements, distributions, and assets of each trust in which the beneficiary has a mandatory or discretionary income interest. Our Trustee may furnish the beneficiary with a copy of the trust's annual federal income tax return to satisfy this requirement. The trust's books, records, and documentation shall be available at all reasonable times for inspection by a trust beneficiary and his or her legal representatives. Our Trustee shall not be required to furnish a trust's books, records, or documentation to any individual, corporation, or other entity without the express written approval of that trust's beneficiary or pursuant to a court order. Section 5. Delegation among Our Trustees Any Trustee may delegate in writing to any other Trustee the power to exercise any or all powers'granted our Trustee in this agreement, including those which are discretionary, if such delegation is allowed by law. Our delegating Trustee may revoke any such delegation in writing at anytime. Section 6. Utilization of Substitute Trustee If our Trustee is unwilling or unable to act as to any trust property,-our Trustee shall designate, in writing, an individual or institutional trustee situated in any state or country to act as a substitute Trustee with regard to such property. The property being administered by the substitute Trustee, as well as the net income therefrom, shall be distributed or remitted as directed by the delegating Trustee consistent with the terms of this agreement. A substitute Trustee shall exercise all of the fiduciary powers granted by this agreement unless expressly limited by the delegating Trustee in the instrument appointing such substitute Trustee. 13-2 A substitute Trustee may resign at any time by delivering written notice to our Trustee. Our Trustee may terminate a substitute Trustee in writing at any time. Section 7. Trustee's Fee Our Trustee shall be entitled to fair and reasonable compensation for the services it renders as a fiduciary. The amount of compensation shall be an amount equal to the customary and prevailing charges for services of a similar nature during the same period of time and in the 'same geographic locale. Our Trustee shall be reimbursed for the reasonable costs and expenses incurred in connection with its fiduciary duties under this agreement. Section 8. A Majority of Trustees Required to Control When more than two Trustees are acting, the concurrence and joinder.of a majority of the Trustees shall control in all matters pertaining to the administration of any trust created under this agreement. If only two Trustees are acting, the concurrence and joinder of both shall be required. Any dissenting or abstaining Trustee shall be absolved from personal liability by registering a written dissent or abstention with the records of the trust. The dissenting Trustee shall thereafter act with the other Trustees in any manner necessary or appropriate to effectuate the decision of the majority. Section 9. Successor Corporate Fiduciaries If any bank or trust company succeeds to the trust business of any corporate fiduciary serving as a Trustee under this agreement, whether because of a name change or any other form of reorganization, or if such corporate fiduciary transfers all of its existing business to -any other bank or trust company, the successor shall thereupon, without any action being required, succeed to the trusteeship as if originally named. 13-3 Section 10. Early Termination of Trusts Based on Cost If our Trustee, other than a beneficiary acting as a Trustee, shall determine that any trust created under this agreement has become uneconomical to administer due to the disproportionate cost of administration relative to the value of the trust property, our Trustee may terminate such trust or trusts and distribute the trust property, including any accrued but undistributed net income, in the following order: To us, or to the survivor of us. To the then mandatory income beneficiaries of the trust, per stirpes. To the beneficiaries then entitled to receive discretionary payments of income of the trust,per stirpes. Section 11. Trustee's Powers Our Trustee may exercise those powers set forth under the Trustees' or Fiduciaries' Powers Act, or its equivalent, of the State of Pennsylvania, together with any amendments. In addition, our Trustee shall have the following powers: a. Banking Powers Our Trustee is authorized to establish and maintain bank and financial accounts of all types in one or more financial institutions that our Trustee may choose. b. Collection of Life Insurance and Other Death Proceeds Our Trustee shall make a reasonable effort to collect all sums made payable to our trust or to our Trustee under life insurance policies and other death benefit plans. In collecting such proceeds, our Trustee may, in its sole and absolute discretion, exercise any of the settlement options or elections that may be available under the terms of life insurance policies or any other third-party beneficiary contracts which are the deceased Trustmaker's separate property. 13-4 Our Trustee and the surviving Trustmaker shall together make all appropriate elections with regard to life insurance policies, retirement plans, and other death benefits which are a part of our community property. Such elections shall be consistent with the laws of the state having jurisdiction over those proceeds. The receipt of the proceeds by our Trustee shall relieve a person or entity making such payments from further liability with regard to those payments. c. Environmental Powers Our Trustee shall have the power to inspect any trust property to determine compliance with any environmental law affecting such property or to respond to any environmental law affecting property held by our Trustee. "Environmental Law" shall mean any federal, state, or local law, rule, regulation, or ordinance relating to protection of the environment or of human health. Our Trustee shall have the power to refuse to accept property if our Trustee determines that there is a substantial risk that such property is contaminated by any hazardous substance or has previously, or is currently,being used for any activities directly or indirectly involving hazardous substances which could result in liability to the trust assets. "Hazardous substance" shall mean any substance defined as hazardous or toxic by any federal, state, or local law, rule, regulation, or ordinance. Our Trustee shall have the power to take any necessary action to prevent, abate, clean up or otherwise respond to any actual or threatened violation of any environmental law affecting trust property prior to or after the initiation or enforcement of any action by any governmental body. Our Trustee may disclaim or release any power granted to it or implied by any document, statute, or rule of law which the Trustee determines may cause the Trustee to incur liability under any environmental law. Our Trustee may charge the cost of any inspection, review, prevention, abatement, response, cleanup, or remedial action authorized under this power against the trust property. Our Trustee shall not be liable to any beneficiary or to any other party for any decrease in value of the trust property by reason of our 13-5 Trustee's compliance with any environmental law, specifically including any reporting requirement under such law. d. Insurance Powers Our Trustee may purchase insurance of any kind including life, annuity, accident, sickness, and medical insurance for the benefit of any beneficiary. e. Loan,Borrowing, and Encumbrance Powers Our Trustee may loan money to a beneficiary with or without interest, on any term or on demand, with or without collateral, as it deems to be in the best interests of the trust's beneficiaries. It may borrow money upon such terms and conditions as it shall deem advisable, including, in the case of a corporate fiduciary, the power to borrow from its own banking or commercial department. It shall have the power to obligate -the trust property for the repayment of any sums borrowed. Our Trustee shall have the power to encumber the trust property, in whole or in part, by a mortgage or mortgages, deeds of trust, or by pledge, hypothecation or otherwise, even though such encumbrance may continue to be effective after the term of any trust or trusts created in this agreement. f. Margin and Brokerage Account Powers Our Trustee is authorized to buy, sell, and trade in securities of any nature, including short sales. Our Trustee may maintain and operate margin accounts with brokers, and may pledge any securities held or purchased by our Trustee with such brokers as security for loans and advances made to our Trustee. g. Nominee Powers Our Trustee may hold trust property directly in the name of our Trustee as Trustee, in the name of our Trustee as an individual, in the individual names of our Trustees as joint tenants, in the name of 13-6 a nominee partnership, or in the name of any other kind of nominee. Our Trustee may enter into agreements which facilitate the holding of trust property in the name of a nominee, and may hold trust property in nominee form with or without disclosing its fiduciary capacity. h. Retirement Plan Elections Our Trustee shall have the right, in its sole and absolute discretion, to elect to receive any retirement plan death proceeds, whether under a qualified pension, profit sharing, HR-10, individual retirement account, or any other retirement plan, either in a lump sum or in any other manner permitted by the terms of the particular retirement plan, to the extent of the interest of the deceased Trustmaker. Our Trustee, in its sole and absolute discretion, may disclaim the benefits of any retirement plan payable to our trust, including individual retirement accounts that are payable to our trust. Such disclaimed benefits shall be payable directly to the surviving Trustmaker. i. Real Estate Powers Our Trustee may purchase, sell, transfer, exchange or otherwise acquire or dispose of any real estate. Our Trustee may make. leases and grant options to lease for any term, even though the term may extend beyond the termination of any trust created under this agreement. It may elect to insure, as it deems advisable, all actions contemplated by this subsection. Our Trustee may take any other action reasonably necessary for the preservation of real estate and fixtures comprising a part of the trust property or the income therefrom. Our Trustee shall exercise its administrative and investment powers as our Trustee determines in its sole and absolute discretion to be in the best interests of the beneficiaries and shall do so without the order of any court. 13-7 Notwithstanding anything to the contrary in this agreement, our Trustee shall not exercise any power in a manner inconsistent with the beneficiaries' rights to the beneficial enjoyment of the trust property in accordance with the general principles of the law of trusts. Our Trustee may perform every act reasonably necessary to administer each and every share or trust created under this agreement. Each power conferred upon our Trustee under this Article, or upon Trustees in general, by applicable state or federal statutes, shall be subject to any express limitations or contrary directions contained in this agreement. i 13-8 Article Fourteen Definitions and General Provisions Section 1. Definitions For purposes of this agreement, the following words and phrases shall be defined as follows: a. Adopted and Afterborn Persons Persons who are legally adopted while they are under 18 years of age (and those persons adopted after attaining 18 years of age) shall be treated for all purposes under this agreement as though they were the naturally born children of their adopting parents. An afterborn person is a descendant of ours who is born after the date that we sign this agreement. A child in gestation who is later born alive shall be considered a child in being throughout the period of gestation. b. Descendants A person's descendants shall include all of his or her lineal descendants through all generations. A descendant in gestation who is later born alive shall be considered a descendant in being throughout the period of gestation. An adopted person, and all persons who are the descendants by blood or by legal adoption while under the age of 18 years of such adopted person, shall be considered descendants of the adopting parents as well as the adopting parents' ancestors. c. Per Stirpes Distributions Whenever a distribution is to be made to a person's descendants, per stirpes: 14-1 The distributable assets are to be divided into as many shares as there are then living children of such person and deceased children of such person who left then living descendants. Each then living child shall receive one share and the share of each deceased child shall be divided among such child's then living descendants in the same manner. d. Education As used in this trust,."education" shall include: Any course of study or instruction at an accredited college or university granting undergraduate or graduate degrees. Any course of study or instruction at any institution for specialized,vocational,or professional training. Any curriculum offered by any institution that is recognized for purposes of receiving financial assistance from any state or federal agency or program. Any course of study or instruction which may be useful in preparing a beneficiary for any vocation consistent with the beneficiary's abilities and interests. Distributions for education may include tuition, fees, books, supplies, living expenses, travel, and spending money to the extent that they are reasonable. e. Personal Representative For the purposes of this agreement, the term "personal representative" shall include an executor, administrator, guardian, custodian, conservator, agent under a valid power of attorney, Trustee,or any other form of personal representative. f. Disability Except as otherwise provided in this agreement, any individual (including any Trustee who is not a Trustmaker) may be treated as disabled, incompetent, or legally incapacitated if: 14-2 The individual has been declared or adjudicated as such by a court of competent jurisdiction, or A guardian, conservator, or other personal representative of such individual's person or estate has been appointed by. a court of competent jurisdiction, or The individual has been certified as such in writing by at least two licensed physicians, or The individual has disappeared or is absent for unexplained reasons, or the individual is being detained under duress where the individual is unable to effectively manage his or her property or financial affairs, or The individual suffers from a drug, alcohol, chemical, gambling or other dependency addiction, as certified in writing by our Trustee and at least one licensed physician.. If the disability of a Trustee is in question, that individual Trustee shall not participate in the decision. g. Health Care Agent and Health Care Documents For the purposes of this agreement, the term "Health Care Agent" shall refer to the individual(s) then entitled to make health care decisions on behalf of a Trustmaker. Health Care Agent shall include, without limitation, a health care representative or health care surrogate entitled to serve under state law and/or designated under a Trustmaker's Health Care Documents. For the purposes of this agreement, the term "Health Care Documents" shall refer to any documents setting forth directions regarding a Trustmaker's health care and/or designating a Trustmaker's Health Care Agent. Health Care Documents shall include, without limitation, a living will declaration, advance directive, or health care power of attorney executed in accordance with state law. h. Primary Care Physician For the purposes of this agreement, the term "primary care physician" shall refer to the physician who maintains custody of a Trustmaker's permanent medical records. 14-3 0 i. Retirement Plan For purposes of this agreement, the term "retirement plan" shall include, without limitation, a qualified pension plan, profit sharing plan, 401(k), Keogh, individual retirement account (including a SEP, deductible, nondeductible, Education and Roth IRA), or any other retirement plan. Section 2. Dissolution of Our Marriage If our marriage is dissolved at any time, each spouse shall be deemed to have predeceased the other for purposes of distributions under this agreement and for purposes of serving as a disability or death Trustee on behalf of the other. It is our intent that our respective property held in our trust shall not be used for the benefit of the other spouse upon the dissolution of our marriage. Section 3. The Rule Against Perpetuities Unless sooner terminated by the express provisions of this agreement, each trust created in this -agreement shall terminate twenty-one year's after the death of the last survivor of the group composed of the both of us and those of our descendants living at the time the.first one of us dies. At that time, the property held in trust shall be discharged of any further trust, and shall immediately vest in and be distributed to those persons entitled to receive or have the benefit of the income from the respective trust. For purposes of distributions under this Section only, it shall be presumed that any person then entitled to receive any discretionary payments of the income of a separate trust is entitled to receive all of the income, and it shall be presumed that any class of persons entitled to receive discretionary payments of income is entitled to receive all of such income. Section 4. Protective Clause To the fullest extent permitted by law, the interests of all of the beneficiaries in the various trusts and trust property subject to this agreement (except for a living Trustmaker's separate and community interests) shall not be alienated, pledged, anticipated, assigned, or encumbered unless specifically authorized by the terms of this agreement. 14-4 Such interests shall not be subject to legal process or to the claims of any creditors, (other than a living Trustmaker's creditors to the extent of his or her separate and community interests) while such interests remain trust property. Section 5. Maintaining Property in Trust If, on the termination of any separate trust created under this agreement, a .final distribution is to be made to a beneficiary for whom our Trustee holds a trust created under this agreement, such distribution shall be added to such trust rather than being distributed. The property that is added to the trust shall be treated for purposes of administration as though it had been an original part of the trust. Section 6. Survivorship Presumptions If the order of our deaths cannot be established by proof, the wife Trustmaker shall be deemed to have survived the husband Trustmaker. Section 7. Contest Clause If any person, including a beneficiary, other than one of us, shall in any manner, directly or indirectly, attempt to contest or oppose the validity of this agreement, including any amendments thereto, or commences or prosecutes any legal proceedings to set this agreement aside, then in such event such person shall forfeit his or her share, cease to have any right or interest in the trust property, and shall be deemed to have predeceased both of us. Should any person disclaim his or her interest, in whole or in part, in any trust created for his or her benefit in this trust agreement, the result of which would be for that person to receive trust property free of trust earlier than provided by the terms of the trust, then the disclaiming person shall forfeit his or her interest in the trust, shall cease to have any right or interest in the trust property, and shall be deemed to have predeceased both of us. In the event the surviving Trustmaker successfully elects to take a statutory share of the deceased Trustmaker's estate as provided under state law, then the surviving Trustmaker's interest in the deceased Trustmaker's property in 14-5 this trust shall terminate and any of the deceased Trustmaker's property previously held in trust for the benefit of the surviving Trustmaker as provided in this agreement shall be held and distributed as though the surviving Trustmaker had predeceased the deceased Trustmaker, despite any conflicting provision in this agreement. Section 8. Changing the Trust Situs After the death or disability of one of us, the situs of this agreement may be changed by the unanimous consent of all of the beneficiaries then eligible to receive mandatory or discretionary distributions of net income under this agreement. If such consent is obtained, the beneficiaries shall notify our Trustee in writing of such change of trust situs, and shall, if necessary, designate a successor corporate fiduciary in the new situs. This notice shall constitute removal of the current Trustee, if appropriate, and any successor corporate Trustee shall assume its duties as provided under this agreement. A change in situs under this Section shall be final and binding, and shall not be subject to judicial review. Section 9. Adjustments for Inflation Unless otherwise specifically indicated, whenever a specific dollar amount is to be distributed under this trust agreement, our Trustee shall adjust for inflation by increasing the amount in proportion to increases in the Consumer Price Index for All Urban Consumers, U.S. City Average, All Items, 1967 = 100 (the "Consumer Price Index"). Our Trustee shall determine the proportion by comparing the Consumer Price Index for the month in which the specific dollar amount was first set forth in this agreement (or in any subsequent amendment or restatement) with the Consumer Price Index for the month in which the amount is to be paid or distributed. No reduction in any specific dollar amount shall be made in the event of a decrease in the Consumer Price Index below the level of the month in which the amount was first set forth in this agreement (or in any subsequent amendment or restatement)- 14-6 If publication of the Consumer Price Index shall be discontinued, our Trustee shall select such comparable statistics on the cost of living for urban consumers in the United States as our Trustee deems, in its sole and absolute discretion, to be an appropriate measure of inflation. Section 10. General Matters The following general matters of construction shall apply to the provisions of this agreement: a. Construction Unless the context requires otherwise, words denoting the singular may be construed as denoting the plural, and words of the plural may be construed as denoting the singular. Words of one .gender may be construed as denoting another gender as is appropriate within such context. b. Headings of Articles, Sections,.and Paragraphs The headings of Articles, Sections, and Paragraphs used within this agreement are included solely for the convenience and reference of the reader. They shall have no significance in the interpretation or construction of this agreement. c. Notices All notices required to be given in this agreement shall be made in writing by either: Personally delivering notice to the party requiring it, and securing a written receipt, or Mailing notice by .certified United States mail, return receipt requested, to the last known address of the party requiring notice. The effective date of the notice shall be the date of the written receipt or the date of the return receipt, if received, or if not, the date it would have normally been received via certified mail, provided there is evidence of mailing. 14-7 d. Delivery For purposes of this agreement "delivery" shall mean: Personal delivery to any party, or Delivery by certified United States mail, return receipt requested to the party making delivery. The effective date of delivery shall be the date of personal delivery or the date of the return receipt, if received, or if not, the date it would have normally been received via certified mail, provided there is evidence of mailing. e. Applicable State Law The validity of this trust shall be determined by reference to the laws of the State of Pennsylvania. Questions with regard to the construction and administration of the various trusts contained in this agreement shall be determined by reference to the laws of the state in which the trust is then currently being administered. f. Duplicate Originals This agreement may be executed in several counterparts; each counterpart shall be considered a duplicate original agreement. g. Not Contractual We are executing our wills at or about the same time, but even though our wills are similar, they are not intended to be, and shall not be construed to be, contractual or reciprocal. h. . Severability If any provision of this agreement is declared by a court of competent jurisdiction to be invalid for any reason, such invalidity shall not affect the remaining provisions of this agreement. The remaining provisions shall be fully severable, and this agreement 14-8 a � shall be construed and enforced as if the invalid provision had never been included in this agreement. We have executed this agreement the day and year first written above. We certify that we have read this agreement and that it correctly states the terms and conditions under which our trust property is to be held, managed, and disposed of by our Trustee. We fully understand that this trust agreement does not provide any federal or state estate tax planning, and that our trust must be amended or restated in order to provide for estate tax planning. We approve this revocable living trust in all particulars, and request our Trustee to execute it. `7 STANLEYR. WAkTtif, Trustmaker OYCE A. MINNICH,Trustmaker nOA1 ll r S ANL R. WARIFE , Trustee J YCE A. MINNICH, Trustee 14-9 On February 13, 2002, the Trustmakers signified to us that this revocable living trust was being made by the Trustmakers freely and voluntarily and, in our presence, the Trustmakers signed the foregoing and we signed our names as witnesses. We further state that the Trustmakers have been personally known to us, and are believed by us to be of sound mind and under no duress, fraud or undue influence. We did not sign. the Trustmakers' signatures above for or at the direction of either of the Trustmakers. We are not a parent, spouse, or child of either of the Trustmakers, are not to the best of our knowledge entitled to any part of either of the Trustmakers' estates. We are competent and at least eighteen (18)years old. WITNESS f WIT ESS STATE OF PENNSYLVANIA ) ss. COUNTY OF CUMBERLAND ) The foregoing living trust agreement was acknowledged before me on February 13, 2002,by STANLEY R. WARFEL, as Trustmaker and Trustee. Witness my hand and official seal. My commission expires: Notarial Soed agllou A.Stambaugh, PubHc Larcastsr,LancasterCouray 4 h4y Commission Explres Pecs,b,2004 NOT Y PUBLIC 14-10 STATE OF PENNSYLVANIA ) ss. COUNTY OF CUMBERLAND ) The foregoing living trust agreement was acknowledged before me on February 13, 2002,by JOYCE A. MINNICH, as Trustmaker and Trustee. Witness my hand and official seal. My commission expires: Notar- -�-.� 'ar - ia?8edt Marylou A,rtam'Naugt,,Notaq Public t_anas er,LancasterCounty My Commission Expires Apr.5,2004 PUBLIC 14-11