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HomeMy WebLinkAbout01-0484 PETITION FOR PROBATE and GRANT OF LETTERS ~I-O/-OY.~ Estate of also known as SAMUEL AA RLAC:K No. To: Register of Wills for the . Deceased. County of Cumberland in the Social Security No. 17fi-c)4-Qfic)c) Commonwealth of Pennsylvania The petition of the undersigned respectfully represents that: Your petitioner(s), who is/are 18 years of age or older an the executrix in the last will of the above decedent, dated February 22 and codicil(s) dated None named , 19R- (state relevant circumstances, e.g. renunciation, death of executor, etc.) Decendent was domiciled at death in Cumberland County, Pennsylvania, with h is last family or principal residence at 117 East Marble Street, Borough of Mech- anicsburg, Cumberland County. Pennsylvania 17055. (list street, number and muncipality) Decendent, then 42 years of age, died May 8 , Mk 2001 , at Borough of Mechanicsburg, Cumberland County, Pennsylvania Except as follows, decedent did not marry, was not divorced and did not have a child born or adopted after execution of the will offered for probate; was not the victim of a killing and was never adjudicated incompetent: None Decendent at death owned property with estimated values as follows: (If domiciled in Pa.) All personal property (If not domiciled in Pa.) Personal property in Pennsylvania (If not domiciled in Pa.) Personal property in County Value of real estate in Pennsylvania situated as follows: Miller Township, Perry County, $ Unestimated $ $ $ Unestimated Pennsylvania WHEREFORE, petitioner(s) respectfully request(s) the probate of the last will and codicil(s) presented herewith and the grant of letters tes tamen tary (testamentary; administration c.t.a.; administration d.b.n.c.t.a.) theron. '" '6 u c: 11) ~3 11) ..... 0:::11) I:: -00 c'''::: ro "= ,.-..11) ~o.. 11) '- ;:; 0 ~ c: OJ) Ci3 %~~/~ Kierna A. Black 117 F.RR~. MRrh1p Strppt MechanicsburgA PA 17055 OATH OF PERSONAL REPRESENTATIVE COMMONWEALTH OF PENNSYLVANIA I s~ COUNTY OF CUMBERLAND J S The petitioner(s) above-named swear(s) or affirm(s) that the statements in the foregoing petition are true and correct to the best of the knowledge and belief of petitioner(s) and that as personal represen- tative(s) of the above decedent petitioner(s) will well and truly administer the estate according to law. swo.rn. to, ~r affirme.9 -E-110d. SUb,scribedJti ~ . __~~LuL-.J ~ . before me ~ I I It-"" ay of K~erna A. Black ~ -' -1 / "', 001 ~ l' I 1," ~ 'Ye/ r 'J e isler ~ I t.v - ~31 - 5 No. ~ 1-01- DY- i4 Estate of SAMUEL A. BLACK , Deceased DECREE OF PROBATE AND GRANT OF LETTERS 11 AND NOW May ~9 2001, in consideration of the petition on the reverse side hereof, satisfactory proof having been presented before me, IT IS DECREED that the instrument(s) dated February 22, 1991 described therein be admitted to probate and filed of record as the last will of Samuel A. Black and Letters 'T'pg 1"" .qmpn 1""::l ry are hereby granted to Kierna A. Black By . ' . A r.Q...[ V m ,~/U{j~ egis er of Wills ) ~ fJpto.. & SPARE, P. C. ~. f '3b 00 Probate, Letters, Etc. ......... $ tt) , :::t~~~esfh .......... $ I~'~~ ......~: Ig,~O h. . 7 TOTAL - $atol.OO Filed ... ~).' .I ~. : (,of. . . . . . . . . . . . . . . . . . . . . FEES ADDRESS (717) 697-8528 PHONE LL f(l216 n~ L TO A rr-1 ~1-DI-D4~4 REGISTER OF WILLS OF CUMBERLAND COUNTY OATH OF SUBSCRIBING WITNESS uly qualified according to present and saw codicil (each) a subscribing witness to the will presented herewith, (each) bein law, depose(s) and say(s) that the testat , sign the same and that request of testat_ in h presence and (i other subscribing witness(es)). signed as a witness at the e presence of each other) (in the presence of the Sworn to or affirmed and subscribed me this day of 19_ (Name) (Address) Register (Name) (Address) REGISTER OF WILLS OF CUMBERLAND COUNTY OATH OF NON-SUBSCRIBING WITNESS Kierna A. Black and Richard C. Snelbaker (each) a subscriber hereto, (each) being duly qualified according to law, depose(s) and say(s) that each is familiar with the signature of Samuel A. Black ~k testaL~ of (mu~x~txmexJmUiCtibi:IlgCxwim~XOOJ the will presented herewith and oodi:am that each believes the signature on the will is in the handwriting of Samuel A. Black~ the Testator therein, to the best of Oil r knowledge and belief. ~~~~ ) (Name) Marble 'Street Thi~ is to certify that the information here given IS correctly copied from an original cerrific~lte of death dul~ filed with me as 1 'f' '11 b f'orw',ll"ded to the State Vital Records Office for nermanenr filmg. I ()L:a\ Registrar. The origin,{ cert I Kate WI e t WARNING: It is illegal to duplicate this copy by photostat or photograph. Fee for this certificate, $2.00 /~;jliffl/;;;;;_,- A,;jt'~\.\~ OF Pi:'i~~ ""~,,~ ~-fI(1JI ~_, l\~ / ,~.~\. /~ ~I tl1loa.,~, \<L. ~ J~~i':-~ \~... /~:Jet . ~ \~% I~ B" -,:~.. I ,:h~ \\ .~~, <~:', \::! ~ ~. ,,,",~,\ ~ rA'~ /~/ .0:. ~h '--- /~~'r " ~-~-7ITr!~----/\ "",I~\ ~'~",'" EN1 \) Ilj(~ ';,I',~ P 7401754 No. &-~.~~~~ Local Registrar MAY 1 0 2001 Date Hl05.143 Rev. 2187 COMMONWEALTH OF PENNSYLVANIA · DEPARTMENT OF HEALTH. VITAL RECORDS CERTIFICATE OF DEATH PRIM,. ~ ~MENl' KINK NAME ~ DECEDENl' {First, Middle, Last) 1. Samue..e AndJte.w B.eac.k SEX 2. Ma.e e. AGE (Last Birthday) UNDER 1 YEAR Months Days 5. COUNTY ~ DEATH UNDER 1 DAV Hours 1 Minut.. BIRTHPlACE (City and Stata Of Foreign ~"'lntry) He.Jt-6ne.!!,rA PLACE OF DEATH (Check oniy one - see instructions on OthOf sida) HOSPITAL: Inpallent 0 7. ... FACILITY NAME (If not inSlitution. give .tr.... and numbar) ~:;"y) 0 Old ~nt live In. lown.hip? 17d.Ci ~~hi=~I':;::' of MOTHER'S NAME (First, Middle. Maiden Surname) a Joanne. M. F.e nn INFORMANT'S MAILING ADDRESS (Street. CitylTown, Stale. l'i' Code) ~.117 Ea-6t MaJtble. St. Me.enan~c.-6buJtg, PA 17055 PLACE OF DISPOSITION. Nam. Of Cemet.ry, Crematory LOCIITION . CllylTown. Stala. Lip Code or Other Placa 42 Vrs. ~I . Cumbe.Jt.eand lb. DECEDENT'S USUAL OCCUPlJION (~~'f'n:Iif~~d=u~~~f~~ WAS DECEDENT EVER IN U.S. ARMED FORCES? YesO NO~ . 11.. llb. DECEDENT'S MAILING ADDRESS (Street. CilylTown. State. lip Code) . 117 Ea-6t Makb.ee. St. Me.c.han~c.-6bukg, PA 17055 11. FIITHER'S NAME (First. Middle. Last) Samuel H. B.eac.k 12. 13. 17.. SI.t. Pe.n1'1 11 lJiva ni a 17b. Coun r.llmh" It in I1d 11. INFORM,yIT'S NAME ~r'"9 2Oe. K-te.kna /j.{ac.R METHOD OF DISPOSITION DATE OF DISPOSITION Burial 0 Cremation ~ Removal from State 0 (Month. Day, Year) Othe<(Specity\ 0 21b. MAY 14,2001 SERVICE LICENSEE OR PERSON ACTING AS SUCH LICENSE NUMBER 22b.011589L To the bast of my know1adge. daath oceurred at ths time. date.nd place stated. (Signatute and TiUe) SWE FILE NUMBER SOCIAL SECURITY NUMBER 3. 176 - 54 MARITAL STIITUS - Married Never M.rrled. w._, 0Iv0rc<<f ISpecity) Makk-te.a 14. 17c.0 Yes. dec_nl lived in RACE - ,6.merican Inman, Black, White, efe (Specity) 10. Wh-i..te. SURVIVING SPOUSE (It wife, give maiden name) Se.~6eJtt twr citylborc 23a. TIME OF DEATH 24. 7: 25PM M. 25. 27. PART I: Enter t~ diseases, injuries or compl;cat'ons whtch caused the death. 00 not enter the mode of dying, luch 81 cardiae or respiratory arrest, shock or heart failure. list only one cause on each line:. ( :. d. WERE AUTOPSV FINDINGS AVAILABLE PRIOR TO COMPLEl'ION OF CAUSE ~ DEATH? DUE TO (OR AS A CONSEOUENCE OF): MANNER ~ DEATH DATE ~ INJURV (Month. Day, Year) 1ij o o 21d. HaH~-6bUk , PA 17109 Spk~ng-6,PA 77065 DIITE SIGNED (Month. Day. Vear) 23b. 230. WAS CASE REFERRED TO MEDICAL EXAMINERICORONER1 Va. KJ NoD 21. t Approxim8le : interval-.n I on..t and daath I l PART": OtMr' significant conditions contributing to death, but not resutl.ing in the undertying cause given in PART I TIME OF INJURV INJURY AT WORK? DESCRIBE HOW INJURV OCCURRED Pending Invastlgallon Could not be detarmined o o o ~~E ~ INJURV . At home. lar:~;..t,lectory, OtflCO IKriIdlng. ate. (Specity) 3Cle. Natura' Homickla Accklant Ves 0 No 0 Suicide .210. 21b. CERTIFIER (Check only ana) "CEllTII'YIHG PHVSICIAN (Physoc,"" certifying cause of death wtlen another physician has pronounced aeath and completed Item 23) TO"," beet Of my knowlaclga, da.thocCurredd...IOIllaCIIUM(.).ndmann.....t.ted............................................ 211. 'PRONOUNCING AND CER'TtI'YING PHVSICIAN (PlIysician boIh pronouncIng de8th end eertitying to cause ol death) To ilia beet of my knowlaclge, daath occurred al tho _, dal.,.nd pIac.,.nd d... to tho c.UM(.).nd manner.. .talad......... . .. . ., ... .... ... . <MEDICAL EXAMINER/CORONER On the - 01 examination and/or Inveetlgatlon, In my opinion, d.alh occurred ., lhe time, d.le. .nd place, end due 10 Ihe c.uee(.) .nd _nnet' .. alated.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . .. . . . . . . . . , . . . . . . . . . . . .. . . . . . . 31.. REGISTRAR'S SIGNATURE AN I~ 11d.t llol o o 34. LAST WILL AND TESTAMENT I, SAMUEL A. BLACK, of the Borough of Mechanicsburg, County of Cumberland and State of Pennsylvania, being of sound mind, memory and understanding, do make, publish and declare this to be my Last Will and Testament, hereby revoking and making void all former wills, codicils and other testamentary dispositions by me at any time heretofore made. 1 . I direct my executrix, hereinafter named, to pay as soon as practicable after my decease all my just debts and expenses of my last illness and burial. 2 . I give, devise and bequeath all the rest, residue and remainder of my estate, whatsoever and wheresoever situate, unto my wife, Kierna A. Black, providing she shall survive me by (60) sixty days. 3 . Should my said wife, Kierna A. Black, predecease me or die on or before the sixtieth day following my death, then and in that event, I give, devise and bequeath my entire estate unto my Trustee, hereinafter named, IN TRUST for the following uses and purposes: A. To use and ?pply so much of the income as, in Trustee's discretion, may be necessary or appropriate for my son's, Aaron J. Black, support and education until he attains the age of eighteen (18) years. Any income not so used or applied shall be accumulated and added to and thereafter treated as a part of principal. B. To pay the net income therefrom to my son, Aaron J. Black, from and after the day and date he attains the age of eighteen (18) years until the termination of this trust as hereinafter provided. C. As much of the principal of this trust as my trustee may from time to time think advisable for the support and education (including post high school education) of my son, Aaron J. Black, after taking into consideration his other readily available assets and sources of income, or during illness or emergency, shall be either paid to him or else be applied directly for his benefit by my trustee. D. My trustee may apply the net income of this trust for the support and education of my son, Aaron J. Black, should he by reason of age, illness, or any other cause, in the opinion of my trustee, be incipable of disbursing it. E. To pay over the balance of the principal and any accumulated income to my son, Aaron J. Black, when he attains the age of twenty-five (25) years at which time the Trust shall 4. My personal representative, trustee, and guardian shall have the following powers in addition to those vested in them by law and by other provisions of my Will, applicable to all property, including property held for minors, whether principal or income, exercisable without court approval, and effective terminate. until actual distribution of all property. (A) To retain any or all of the assets of my estate, real or personal, without regard to any principle of diversification, risk or productivity. (B) To invest in all forms of property, including stocks, common trust funds and mortgage investment funds, without restriction to investments authorized for Pennsylvania fiduciaries, as they deem proper, without regard to any principle of diversification, risk or productivity. C. To sell at public or private sale, to exchange or to lease, for any period of time, any real or personal property and to give options for sales, exchanges or leases, for such prices and upon such terms or conditions as they deem proper. D. To allocate receipts and expenses to principal or income or partly to each as my Trustee from time to time thinks proper in its sole discretion. E. To deliver the assets of my estate and the trust herein created either ln cash or in kind, or partly in cash and partly in kind. S . I appoint The First Bank and Trust Company of Mechanicsburg, Pennsylvania, guardian of any property which passes, either under this Will or otherwise, to a minor and with respect to which I am authorized to appoint a guardian and have not otherwise speci- fically done so. Such guardian shall have the power to use principal as well as income from time to time for the minor's education (including post high school education), support and welfare, or to make payment for these purposes, without further responsibility, to the minor or to any person taking care of the minor. 6 . I appoint The First Bank and Trust Company of Mechanicsburg, Pennsylvania, trustee of the trust created by this my Last Will 7 . I hereby nominate, constitute and appoint my wife, Kierna A. Black, executrix of this my Last Will and Testament. Should my said wife fail to qualify or cease to act as executrix, then and in that event, I nominate, constitute and appoint my sister, Constance E. Roland, executrix of this my Last Will. 8 . Should my said wife, Kierna A. Black, predecease me, I appoint my sister-in-law and her husband, Margaret Annan Hollinger and Eric L. Hollinger, and the survivor of them, guardians of the person of my minor son. 9 . I direct that my personal representatives, trustee and guardian shall not be required to give bond for the faithful perfornance of their duties in any jurisdiction. IN WITNESS WHEREOF, I, Samuel A. Black, the Testator have hereunto set my hand and seal to this my Last Will and Testament on this;Ld..~J.. day of I::'" { 1991. 1 ~"V) ~ V\. 0... t-'-( ~/CyY~a~~ . (S E AL) Signed, sealed, published and declared by the within named Samuel A. Black as and for his Last Will and Testament in the presence of us, who, at his request, in his presence and in the presence of each other, have hereunto subscribed our names as witnesses thereto. ~L-U..{I :lct1 ..!\ WU ,.,.-~ 6 /~7 f4#~~ ~ --- CERTIFICATION OF NOTICE UNDER RULE 5.6(a) Name of Decedent: Samuel A. Black, Deceased Date of Death: May 8,2001 No. 2001-00484 PA No. 2101-0484 To the Register: I certify that notice of beneficial interest required by Rule 5.6(a) of the Orphans' Court Rules was served on or mailed to the following beneficiaries of the above-captioned estate on or about May 21, 2001: Name Address Kierna A. Black 117 East Marble Street Mechanicsburg, P A 17055 Notice has now been given to all persons entitled thereto under Rule 5.6(a) except: NONE. Date: May 21, 2001 Richard C. Snelbaker, Esquire 44 West Main Street Mechanicsburg, PA 17055-0318 (717) 697-8528 (I ...-J .. MAY 1 6 2003 \1' RE: ESTATE OF SAMUEL A. BLACK, LATE OF BOROUGH OF MECHANICSBURG CUMBERLAND COUNTY, PENNSYLVANIA, DECEASED IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION ESTATE NO. 21-01-0484 DECREE AWARDING REAL ESTATE AND NOW, thiS'U "\ay of , 2003, it appearing that the First and Final Account and Statement of Proposed Distribution of rna A. Black, Executrix of the Estate and under the Last Will and Testament of Samuel A. Black, Deceased, have been duly filed and advertised according to law and rules of court, and that said Account was duly confirmed and Statement of Proposed Distribution duly approved by this Court on June 17, 2003~ and it further appearing that said Executrix has proposed in said Statement of Proposed Distribution to distribute the Decedent's real estate in kind to herself in her individual capacity, as beneficiary under the above mentioned Last Will and Testament, and said Court having decreed distribution in accordance with said Statement of Proposed Distribution on June 17, 2003 IT IS ORDERED, ADJUDGED and DECREED that all right, title and interest of the said SAMUEL A. BLACK, Deceased, in and to the following described real estate is hereby awarded in fee simple to KIERNA A. BLACK: ALL that certain piece, parcel and lot of ground, situate in Miller Township, Perry County, Pennsylvania, more particularly bounded and described as follows, to wit: LAW OFFICES SNELBAKER BRENNEMAN & SPARE BEGINNING at an iron pin at the southwestern comer of Lot No. 16 on a Plan of three lots surveyed by Earl D. Palm, R.S., in November of 1969 on the northern side of the Old Pennsylvania Canal Towpath, now owned by the Penn Central Railroad Company; thence by the northern side of the Old Pennsylvania Canal Towpath, now the Penn Central Railroad Company, South 38 degree~ 32 minutes West, one hundred fifty (150.00) feet to an iron pin at lands now or formerly of Donald P. and Jane W. McHale; thence by said latter lands, North 32 degrees 30 minutes West, three hundred forty-two (342) feet to a point at the low water mark of the Juniata River; thence along the southern bank of the Juniata River in a northeasterly direction by its various courses, one hundred fifty (150.00) feet, more or less, to a point at the northwestern comer of Lot No. 16 in the aforementioned Plan of Lots; thence by the western side of Lot No. 16, South 32 \grees 30 ... minutes East, three hundred fifteen (315.00) feet to an iron pin on the northern side of the said Towpath, the place of BEGINNING. CONTAINING 1.1 acres, more or less. BEING Lot No. 17 in a Plan of survey conducted by Earl D. Palm, R.S., in November of 1969, and being an extension of the Plan of Lots of Ralph Bretz, as recorded in Perry County Plan Book 4, Page 69. UNDER AND SUBJECT to all rights-of-way of record in the chain of title and as shown on the Plan of Lots hereinbefore mentioned. SUBJECT to a right-of-way of ingress and egress over the entire southern sixteen (16) feet of the property herein conveyed, which right-of-way shall adjoin the northern side of the hereinbefore mentioned TO\\lpath in common with all property owners owning lots adjoining said Towpath, as shown on the Plan of Lots hereinbefore mentioned, as recorded in Perry County Plan Book 4, Page 69, and the plan of three lots as surveyed by Earl D. Palm, R.S., in November of 1969, which is attached hereto marked "Exhibit A" and made a part hereof by reference. TOGETHER WITH the right of ingress and egress from Township Road #440 leading from Newport to Bailey's twenty (20) feet in width to the property herein conveyed; said right-of- way shall include a right-of-way sixteen (16) feet in width along the southern side of the lots as shown on the hereinbefore mentioned Plan of Lots, as recorded in Perry County Plan Book 4, Page 69, and the plan of three (3) lots as surveyed by Earl D. Palm, R.S., in November of 1969 in common with the owners of all other lots and the Grantor herein. BEING the same premises which Donald P. McHale and Jane W. McHale, his wife, by their deed dated September 20, 1988, and recorded in the Recorder's Office aforesaid in Deed Book 0512, Page 126, granted and conveyed to Samuel A. Black, the Decedent herein. IT IS FURTHER ORDERED AND DIRECTED that a certified copy of this Decree shall be recorded in the Office of the Recorder of Deeds in and for Perry County, Pennsylvania, among the deeds recorded in said Office, said Decree to be indexed in the Grantor Index for Deeds against the Estate of SAMUEL A. BLACK, Deceased, and in the Grantee Index for Deeds to KIERNA A. BLACK, pursuant to 00 -~ the SectThn 3536 dfthe Decedents, Estates and Fiduciaries Code (20 Pa. C.S. 3536). , 0"1 ~-- LAW OFFICES SNELBAKER. BRENNEMAN & SPARE N >- '::::t: ::c ~ p ..' ,j j8 J. II F ,~.r'n' :!!',' ,;'i~xiIrBIT An, -"j("'~fuJ~ .'; :~~;:~ ;:. ,," ~: .... /~~.: ,.-,~~'~= , .. :~~ " ~ , -:~-?,;"F'~ . .1;,: ,: '.. ,,:' ~ ".t .;......<-- ~ ~'f:,$.~: .~,<_i..~.. ,": ".\~:",;~:. ~:'- i~: ~'~~:'~~-.~~~:f:~~~~}.:._: ; I l RE: ESTATE OF SAMUEL A. BLACK, LATE OF BOROUGH OF MECHANICSBURG CUMBERLAND COUNTY, PENNSYLVANIA, DECEASED IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION ESTATE NO. 21-01-0484 DECREE AWARDING REAL ESTATE O h.....~ d f ~ ., . . AND N W, t IS I" ay 0 , 2003, It appeanng that the FIrst and FInal Account and Statement of Proposed Distribution 0 . rna A. Black, Executrix of the Estate and under the Last Will and Testament of Samuel A. Black, Deceased, have been duly filed and advertised according to law and rules of court, and that said Account was duly confirmed and Statement of Proposed Distribution duly approved by this Court on June 17, 2003; and it further appearing that said Executrix has proposed in said Statement of Proposed Distribution to distribute the Decedent's real estate in kind to herself in her individual capacity, as beneficiary under the above mentioned Last Will and Testament, and said Court having decreed distribution in accordance with said Statement of Proposed Distribution on June 17, 2003 IT IS ORDERED, ADJUDGED and DECREED that all right, title and interest of the said SAMUEL A. BLACK, Deceased, in and to the following described real estate is hereby awarded in fee simple to KIERNA A. BLACK: ALL that certain piece, parcel and lot of ground, situate in Miller Township, Perry County, Pennsylvania, more particularly bounded and described as follows, to wit: LAW OFFICES SNELBAKER BRENNEMAN & SPARE BEGINNING at an iron pin at the southwestern comer of Lot No. 16 on a Plan of three lots surveyed by Earl D. Palm, R.S., in November of 1969 on the northern side of the Old Pennsylvania Canal Towpath, now owned by the Penn Central Railroad Company; thence by the northern side of the Old Pennsylvania Canal Towpath, now the Penn Central Railroad Company, South 38 degrees 32 minutes West, one hundred fifty (150.00) feet to an iron pin at lands now or formerly of Dcnald P. and Jane W. McHale; thence by said latter lands, North 32 degrees 30 minutes West, three hundred forty-two (342) feet to a point at the low water mark of the Juniata River; thence along the southern bank of the Juniata River in a northeasterly direction by its various courses, one hundred fifty (150.00) feet, more or less, to a point at the northwestern comer of Lot No. 16 in the aforementioned Plan of Lots; thence by the western side of Lot No. 16, South 32 degrees 30 ,- .. . minutes East~ three hundred fifteen (315.00) feet to an iron pin on the northern side of the said Towpath, the place of BEGINNING. CONTAINING 1.1 acres, more or less. BEING Lot No. 17 in a Plan of survey conducted by Earl D. Palm, R.S., in November of 1969, and being an extension of the Plan of Lots of Ralph Bretz, as recorded in Perry County Plan Book 4, Page 69. UNDER AND SUBJECT to all rights-of-way of record in the chain of title and as shown on the Plan of Lots hereinbefore mentioned. SUBJECT to a right-of-way of ingress and egress over the entire southern sixteen (16) feet of the property herein conveyed, which right-of-way shall adjoin the northern side of the hereinbefore mentioned Towpath in common with all property owners owning lots adjoining said Towpath, as shown on the Plan of Lots hereinbefore mentioned, as recorded in Perry County Plan Book 4, Page 69, and the plan of three lots as surveyed by Earl D. Palm, R.S., in November of 1969, which is attached hereto marked "Exhibit A" and made a part hereof by reference. TOGETHER WITH the right of ingress and egress from Township Road #440 leading from Newport to Bailey's twenty (20) feet in width to the property herein conveyed; said right-of- way shall include a right-of-way sixteen (16) feet in width along the southern side of the lots as shown on the hereinbefore mentioned Plan of Lots, as recorded in Perry County Plan Book 4~ Page 69, and the plan of three (3) lots as surveyed by Earl D. Palm, R.S., in November of 1969 in common with the owners of all other lots and the Grantor herein. BEING the same premises which Donald P. McHale and Jane W. McHale, his wife, by their deed dated September 20, 1988, and recorded in the Recorder's Office aforesaid in Deed Book 0512, Page 126, granted and conveyed to Samuel A. Black, the Decedent herein. IT IS FURTHER ORDERED AND DIRECTED that a certified copy of this Decree shall be recorded in the Office of the Recorder of Deeds in and for Perry County, Pennsylvania, among the deeds recorded in said Office, said Decree to be indexed in the Grantor Index for Decds against the Estate of SAMUEL A. BLACK, Deceased, and in the Grantee Index for Deeds to KIERNA A. BLACK, pursuant to the Section 3536ofthe' D~~edents, Estates and Fiduciaries Code (20 Pa. C.S. 3536). . . ~~. I- I. r-n ~~ '. ~<< , J. LAW OFFICES SNELBAKER BRENNEMAN & SPARE LAW OFFICES SNELBAKER. BRENNEMAN & SPARE RE: ESTATE OF SAMUEL A. BLACK, LATE OF BOROUGH OF MECHANICSBURG, CUMBERLAND COUNTY, PENNSYL VANIA, DECEASED IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION ESTATE NO: 21-01-0484 DECREE CA CELLING DEC E DATED MAY 20 2003 AND NOW, this ~ day of , 2003, upon consideration of the within Motion to Correct Distribution Process Resul . rom Decree Awarding Real Estate Prematurely Entered, it is ORDERED AND DECREED: That the Decree Awarding Real Estate entered on May 20, 2003, is hereby cancelled and made void as though never entered. By the Court, P.l ; : 1~~~ 1 c !- (-n c~l.J~ RE: ESTATE OF SAMUEL A. BLACK, LATE OF BOROUGH OF MECHANICSBURG, CUMBERLAND COUNTY, PENNSYLVANIA, DECEASED IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION ESTATE NO: 21-01-0484 MOTION TO CORRECT DISTRIBUTION PROCESS RESULTING FROM DECREE AWARDING REAL EST ATE PREMATURELY ENTERED TO THE HONORABLE GEORGE E. HOFFER, President Judge: AND NOW, comes Kierna A. Black, Executrix of the Estate and under the Last Will and Testament of Samuel A. Black, Deceased, by Snelbaker, Brenneman & Spare, P.C., her attorneys and avers the following: 1. On or about May 16,2003, said Executrix filed with the Register of Wills and Clerk of Orphans' Court her First and Final Account with Statement of Proposed Distribution, together with a suggested Decree Awarding Real Estate. 2. By apparent inadvertence, the suggested Decree Awarding Real Estate was transmitted to the Court prior to the presentation and confirmation of the First and Final Account, which form of Decree was signed by the Court on May 20,2003. A true and correct copy of said Decree is attached hereto marked "Exhibit A" and incorporated herein by reference thereto. 3. The First and Final Account was duly confirmed and distribution ordered by Decree of this Court on June 17, 2003. 4. Because of the premature issuance of the attached Decree Awarding Real Estate, it is necessary to cancel said attached Decree and to issue a revised Decree A warding Real Estate LAW OFFICES SNELBAKER. BRENNEMAN 8: SPARE which conforms to the sequence of the confirmation of the First and Final Account. LAW OFFICES SNELBAKER. BRENNEMAN & SPARE WHEREFORE, Executrix respectfully requests your Honorable Court to (a) cancel and void the Decree Awarding Real estate dated May 20,2003, and (b) issue a revised and new Decree Awarding Real Estate based upon the confirmation of account on June 17,2003. SNELBAKER, BRENNEMAN & SPARE, P.C. BY:U~ /~ _ ~ESqUire 44 West Main Street P.O. Box 318 Mechanicsburg, P A 17055-0318 (717) 697-8528 Attorneys for Executrix -2- RE: ESTATE OF SAlYIUEL A. BLACK. LATE OF BOROUGH OF rvlECHANICSBURG CUlYIBERLAND COUNTY. PENNSYL VANIA, DECEASED IN THE COURT OF COl'vIl'vION PLEAS OF CUrvIBERLAND COUNn". PEN'NSYL VANIA ORPHANS' COURT DIVISION ESTATE NO. 21-01-0484 DECREE A\VARD~G REAL ESTATE AND NO\V. this 2C)TI-I day of rV( A '''---{ . 2003. it appearing that the First and Final ''--- Account and Statement of Proposed Distribution of Kierna A. Black. Executrix of the Estat~ and under the : Last \Vill and Testament of Samuel A. Black. Deceased. have be~n duly filed and acve;:lsed accJrding to la,\" and ndes of court. and that said Account \\"as duly confirmed and Statement of Proposed Distribution duly approved by this Court on June 17,2003: and it further appearing that said Executrix has proposed in said Statement of Proposed Distribution to distribute the Decedent's real ~state in kind to herself in her individual capacity, as beneficiary under the above mentioned Last Will and Testament. and said Court having decreed distribution in accordance with said Statement of Proposed Distribution on June 17, 2003 IT IS ORDERED, ADJUDGED and DECREED that all right. title and interest of the said SAl\IUEL A. BLACK, Deceased. in and to the following described real estate is hereby awarded in fee simple to KIERl~A A. BLACK: ALL that certain piece. parcel and lot of ground. situat~ in l\liller To\\"nship, Perry County. Pennsylvania. more particularly bounded and described as follo\vs. to \\"it: :: ::;.::...:::::: BEGINNING at an iron pin at the southwestern corner of Lot No. 16 on a Plan of three lots surveyed by Earl D. Palm. R.S.. in November of 1969 on the northern side of the Old Pennsylvania Canal To\vpath. no\v owned by the Penn Central Railroad Company: thence by the northern side of the Old Pennsylvania Canal Tmvpath. no\\;" the Penn Central Railroad Company. South 38 degrees 32 minutes \tVest. one hundred fifty (150.00) feet to an iron pin at lands now or formerly of Donald P. and Jane \tV. l\IcHale: thence by said latter lands. North 32 degrees 30 minutes \tVest. three hundred fony-t\vo (342) feet to a point at the low \vater mark of the Juniata River: thence along the southern bank of the Juniata River in a northeasterly direction by its various courses. one hundred tiny (L50.00) feel. more or less. to a point at the north\vestern comer of Lot 1\0. 16 in the J.toremennonl.:d Plan cf Lots: thcnc~ by ~!1c \\'est~r;I SIde cf Lot NO.1 f). South ::-2 dc~re~s :,\ _..:. ,'" 4" ....__ .= ,'.. ~:..=..:.." ~ ~ -=.:::: "I ~ :::.'.:';' "i EXHIBIT A minutes East~ three hundred fifteen (315.00) feet to an iron pin on the northern side of the said Towpath~ the place of BEGINNING. CONTAINING 1.1 acres, more or less. BEING Lot No. 17 in a Plan of survey conducted by Earl D. Palm. R.S.. in November of 1969. and being an extension of the Plan of Lots of Ralph Bretz. as recorded in Perry County Plan Book 4. Page 69. UNDER AND SUBJECT to all rights-of-\\'ay of record in the chain of tItle and as sho\\n on the Plan of Lots hereinbefore mentioned. SUBJECT to a right-of-\\'ay of ingress and egress over the entire southern si:\:tc~n (16) feet of the property herein conveyed. which right-of-way shall adjoin the northern side of the hereinbefore mentioned To\\-path in common with all property o\\"ners O\\'ning lots adJoining said TO\\-path. as ShO\\'11 on the Plan of Lots hereinbefore mentIOned. as r~corded 111 P..:r:-y C cum: Pbn Book 4. Page 69. and the plan of three lots as surveyed by Earl D. PJ.lm. R.S. in :-;O\'cmber of 1'169. \\"hich is attached hereto marked "Exhibit A" and made a pJ.IT hereof by reference TOGETHER \VITH the right of ingress and egress from T o\\"nship Road #4-W leading from Ne\\-port to Bailey's nventy (20) feet in \vidth to the property herein conveyed: said right-of- way shall include a right-of-\vay sixteen (16) feet in width along the southern side of the lots as sho\vn on the hereinbefore mentioned Plan of Lots~ as recorded in Perry County Plan Book 4~ Page 69~ and the plan of three (3) lots as surveyed by Earl D. Palm, R.S., in November of 1969 in common with the o\vners of all other lots and the Grantor herein. BEING the same premises \vhich Donald P. ~tcHale and Jane \V. lVIcHale. his wife, by their deed dated September 20~ 1988, and recorded in the Recorder's Office aforesaid in Deed Book 0512, Page 126, granted and conveyed to Samuel A. Black. the Decedent herein. IT IS FURTHER ORDERED AND DIRECTED that a certified copy of this Decree shall be recorded in the Office of the Recorder of Deeds in and for Perry County. Pennsylvania. among the deeds recorded in said Office. said Decree to be indexed in the Grantor Index for Deeds against the Estate of SANIUEL A. BLACK. Deceased. and in the Grantee Index for Deeds to KIERl'IA A. BLACK. pursuant to the Section 3536 of the Decedents. Estates and Fiduciaries Code (20 Pa. C.S. 3536). 2:. S.:;j~~=: A TRUE COpy FROM RECORD In Testimony wherof. I hereunto set my hand and the seal of said Court at Carlisle. PA ._ .tThiS. 2~ay~r ~'-I ~Q~ i"'-.JLW~u\'-111. ~LL-.lW)~+- \ II Clerk of tRe-orphans Cou Cumberland County By the Court. LAW OFFIC:=:S SN:::L8AKE=:. 2RENNEMAN r -, I' (0: LJ' ! ~ .. ~ /: \1_/L~~ i. It.A_ '-. I ; II !' .' , : - n;~{-----I,-{. 'v I,' EXHIBIT A . 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",.=-- _ ~ \ ,_.~/".- \.- \ -..:\" f-'''--" .... f " ....;'\ - .. , .......\ .",;,. " ; >" :~L-~" . ;~~-\ -'O~~ //:-~<,~~.~~,~~/:':~- ,-~,=> ~-'-'clr' . - .. . . -). ~.\ ,~,,-- .., '-' ~- .:::--::::.... '- ~=-- /~.- -._~, '-~--_/-- .'-'~~:::_-" . .. \---- ", . ~'H "0 -- --'--\-.:.~-- . 'I ::..-- ,,:-:'~. ~_"";__-;-I~= "";\ . . '~- ,...--.-- .. , .. -- ." " \ . .... \ ';J ...-"t. J'---=-- ), ~7'.\ . .--{, v. \. ~ ? /' \ "; ,'\ ;" -- .\ ;.,,", ,.,;.--.--. . , 'J -::.~>. ".C' \ C:::=:p/ j :",' . / / - - rOo. ~ .! I 'I r--. I ' , /" ~~ ! ..~~ ~~~~. ""- : v .1.IHIHX3: :.L:;~~j:; ;;'~?~:~'.t"~' 7~~~;~:72;'k~~~~~:..::~. ~,,~.,. :,':::!_I__.. (_ ....... ==~._~ ..._~ _.- " . .;...;..;~_;.;.:::~..!~:::~. _...;~.:~.. ".f _, . .........: .." ~,>~;'... ;~:,..:. , ':1 v 0' . J. \. ....' '\, ~~~~~,~~ ~~~S;f~0;f~ /; ~- ~t~~r:7~:~:T '. . --.' ~ '. . , ,,' .' . '-- :. ~: ~'.j .. ~-:::-' "\ ~~ ----- - 'v~ ~- ~/'nJ"": ~- -7 . t:?", ,.--- . II ~ 1'-_- :.? ----- . - -,:.;~...~...:....-.:.;:_...;.-i. ~. .~ c..-_~ ..... -.:....:~..::..,..~..~.~.-.. ~ ~.. ....,. . "'. .- . -- ._;j~.;~>t... :..' '~;:. ::~.~~.:i ':~ ~ ~ ~ . . ~~&Lii~.;'~.~.'.:: ~;J~.~ ~~~::~" j;~f~'~~~~~~~~~-'".7;(:~-: :...~\ / .\ ,> ~ ;' .. >~ ~ .' t~ I, ;;~~'. . ~~.:-:.' - :'. ". " ..;. ., . . . . :~.: . -."," .; i:> ~~.~, .' ,..... ~.;.~~ ~ ~.:> .:-;..;:~.. . .~'; \r~: _.: . .. .;-.,..... a.V J.I,a:I~HII;' ': :. IJ I .... i' I ~ . " . f ESTATE NO. 21-01-0484 FIRST AND FINAL ACCOUNT AND STATEMENT OF PROPOSED DISTRIBUTION OF AND BY KIERNA A. BLACK, EXECUTRIX OF THE ESTATE AND UNDER THE LAST WILL AND TESTAMENT OF SAMUEL A. BLACK, DECEASED, LATE OF THE BOROUGH OF MECHANICSBURG, CUMBERLAND COUNTY, PENNSYLVANIA Kierna A. Black, Executrix as aforesaid and Accountant herein, avers as follows: DATE OF DECEDENT'S DEATH: DATE LETTERS TESTAMENTARY ISSUED: May 8, 2001 May 17,2001 DATES EXECUTOR'S NOTICE ADVERTISED: Cumberland Law Journal Patriot-News Co. June 1, 8, 15, 2001 May 29, June 5, 12, 2001 FIRST AND FINAL ACCOUNT PERSONALTY - PRINCIPAL ACCOUNT DEBITS '"he Accountant charges herself with the receipt of the Decedent's personalty, goods and chattels as set forth in her inventory heretofore filed in the amount of: TOTAL, PERSONALTY, PRINCIPAL ACCOUNT, DEBITS: $ 249,669.76 $ 249,669.76 PERSONALTY - PRINCIPAL ACCOUNT CREDITS he Accountant claims credit for the payment of the following items from Decedent's Personalty Account: Hollinger Funeral Home & Crematory, Inc., funeral services ). Snelbaker, Brenneman & Spare, P.C., attorney services 3. Snelbaker, Brenneman & Spare, P.C., costs advanced: a. Register of Wills probate fees b. Cumberland Law Journal, advertising Executrix notice c. Patriot-News, advertising Executrix notice d. Register of Wills, certified Will for federal return e. Register of Wills, filing fee for Inheritance Tax Return f. Register of Wills, additional probate fee g. Greenawalt & Company, P.C., tax consultation fee TOTAL, PERSONALTY, PRINCIPAL ACCOUNT, CREDITS: $ 3,788.32 3,200.00 569.10 267.00 75.00 110.10 2.00 10.00 35.00 70.00 $ 7,557.42 PERSONALTY - INCOME ACCOUNT DEBITS LAW OFFiCES SNELBAr<.ER BRENNEMAN & SPARE he Accountant charges herself with the receipt of the following Income from the investment of Personalty Principal: TOTAL, PERSONALTY, INCOME ACCOUNT, DEBITS: $ $ NONE NONE Page 1 LAW OFFICES SNELBAKER. BRENNEMAN Be SPARE . " PERSONAL TV - INCOME ACCOUNT CREDITS The Accountant claims credit for the payment of the following items from the Personalty Principal Account: TOTAL, PERSONAL TV, INCOME ACCOUNT, CREDITS: $ $ NONE NONE REAL ESTATE - PRINCIPAL ACCOUNT DEBITS The Accountant charges herself with the receipt of Decedent's Real Estate as set forth in her Inventory heretofore filed in the amount of: TOTAL, REAL ESTATE, PRINCIPAL ACCOUNT, DEBITS: $ 17,000.00 $ 17,000.00 REAL EST ATE - PRINCIPAL ACCOUNT CREDITS The Accountant claims credit for the payment of the following items from Real Estate Principal Account: 1. Diversified Appraisal Services, appraisal fee TOTAL, REAL ESTATE, PRINCIPAL ACCOUNT, CREDITS: $ $ 1,550.00 1,550.00 REAL ESTATE - INCOME ACCOUNT DEBITS The Accountant charges herself with the receipt of the income from the investment of Real Estate Principal Account: TOTAL, REAL ESTATE, INCOME ACCOUNT, DEBITS: $ $ NONE NONE REAL ESTATE - INCOME ACCOUNT CREDITS The Accountant claims credit for the payment of the following items From the Real Estate Income Account: TOTAL, REAL ESTATE, INCOME ACCOUNT, CREDITS: $ NONE $ NONE Page 2 LAW OFFICES SNELBAKER, BRENNEMAN Be SPARE I PERSONALTY: PRINCIPAL ACCOUNT: Debits Credits Balance INCOME ACCOUNT: Debits Credits Balance TOTAL PERSONALTY REAL ESTATE: PRINCIPAL ACCOUNT: Debits Credits Balance INCOME ACCOUNT: Debits Credits Balance TOT AL REAL EST ATE: TOTAL FOR DISTRIBUTION' RECAPITULA TION Page 3 $ 249,669.76 $ 7,557.42 $ 242,112.34 $ NONE $ NONE $ NONE $ 17,000.00 $ 1,550.00 $ 15,450.00 $ NONE $ NONE $ NONE .' .. . " $ 242,112.34 $ 15,450.00 $ 257,562.34 LA W OFFICES SNELBAKER. BRENNEMAN & SPARE .A . J iI COMMONWEALTH OF PENNSYLVANIA) 55. COUNTY OF CUMBERLAND) Kierna A. Black, being duly sworn according to law deposes and says: that she is the Executrix of the Estate and under the Last Will and Testament of Samuel A. Black, Deceased; that she is the Accountant herein; that the foregoing is a true and complete accounting of her administration of said Estate; that the attached list or schedule [*] contains the names, addresses and amounts due unpaid creditors who have given proper notice of their claims; that the attached list or schedule [**] contains the names and addresses of all persons interested in the distribution of said Estate; and that the facts set forth herein are true and correct to the best of her knowledge, information and belief. ~;;yJ~ Kierna A. Black, Executrix Sworn to and subscribed ~fore me this d 9-n.,day of Lf;:71R-1 C 2003 _~O-~ ~ ?loA ~SaaJ ~ L.~, ~Publtc ~Jl!!~~Qm-~.OQUfft'1 \::.t.~~~ !jpb'G~ t~ 24 00i:i~~ '\;,~5o~, :7:';~:'-':,. '. -,.. ,/. ~::".::,; '~f1~~~f:;' Page 4 LA W OFFICES SNELBAKER, BRENNEMAN & SPARE * UNPAID CREDITORS: ** PERSONS INTERESTED IN DISTRIBUTION OF ESTATE: 1, Kierna A. Black 117 East Marble Street Mechanicsburg, PA 17055 Page 5 {' .. I. NONE LA W OFFICES SNELBAKER. BRENNEMAN & SPARE ,c' ..- STATEMENT OF PROPOSED DISTRIBUTION Kierna A. Black, Executrix and Accountant herein, proposes to distribute the balance of the Estate of Samuel A. Black, Deceased, to wit: $257,562.34 in accordance with the Last Will and Testament of said Decedent as follows: 1. TO: Kierna A. Black 100% of residue as per Item 2 of Will $ 257,562.34 TOTAL DISTRIBUTION: $ 257,562.34 Page 6 LAW OFFICES SNELBAKER. BRENNEMAN 8c SPARE . ,. COMMONWEALTH OF PENNSYLVANIA) SS. COUNTY OF CUMBERLAND: Kierna A. Black, being duly sworn according to law, deposes and says that the facts set forth in the foregoing Statement of Proposed Distribution are true and correct to the best of her knowledge, information and belief. ~~() ,vi!ad)) Kierna A. Black, Executrix Sworn to and subscribed before me this ~~flaay of j:JpJf!'~2003. Lx:~ ~8ea1 ~.: ~~=.~00unIV ~~Ncw.M~ OOM ~'t..,,>%,1f;f/iJ ;,'"',~;-:?i;;:'if!'J''; .~ "'1'1.';:./",,1;7''') !!l i~t~~ Page 7 COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND I J ss: ~ ..J Kierna A. Black being duly swo rn according to law, deposes and says that she ic th@ Exec l1t rj y of the Estate of Samuel A. Black late of _BQ~O\J.SIll_ _ of -.11~911~nic ~~~ , Cumberland County, Pa., deceased and that the within is an inventory made by Kierna A. Black _, the said Executrix of the entire estate of said decedent, consisting of all the personal prop~rty and real estate, except real estate outside the Commonwealth of Pennsylvania, and that the figures opposite each item of the Inventory represent it's fair value as of the date of decedent's death. Sworn and subscribed before me, dl't-fb1 de. 1 6,L H P~/ t ){9( 2003 L ;( '~A ~':..,:{i'3:~:J';f;'~ ct f~~ Date of De<lth 8th Day ~ (/mvlJ0 Executor. Administrator Kierna A. Black, Executrix 117 East Marble Street Mprn~nir~hl1rg. PA 17055 Address May Month 2001 Year INSTRUCTIONS I. An inventory must be filed within three months after appointment of personal representative. 2. A supplement inventory must be filed within thirty days of discovery of additional assets. 3. Additional sheets may be attached as to personalty or realty 4. See Article IV, Fiduciaries Act of 1949. ,... ~ co ~ o I r-1 o I >- I- W ~ I- W ~ 0... I- o V) W ~ W I 0... l- Ll.. -.J o < z o 0 V) fj ~ 0... ~ i ~I Si COI CJ), ~ u CO r-1 p'.:l >- c::. o ~ z w > Z -I U. < 0 w c::: ,::c, r;jl N o ...;.. u ~ ~ tJ'l ::J o ~ o p'.:l tJ'l ~ ::J -0 (/) o -r-i c: cU ..c:: o CD :os ... (j) -c al ... ~ Q) u Q) o ~ (j) ~ ell cU C'l-O ~ .--I Co. (j) c: CJ) ~ 0... >- - c: () " c: ~ ~ <U ..c E vt- U L ill ]~ U W ~ -r-i j::: g ~ 0/) - o - CD Q) - IT] Inventory of the real and personal estate of SAMUEL A. BLACK, Deceased PERSONAL TV: 1 IBM, 32 shares of common stock valued at $116.63 per share 2 Affinity Online, Inc., 37,879 shares of common stock valued at $ .33 per share 3 S.H. Black & Son, Inc., 51 % ownership 4 J.P. Turner & Company, L.L.C., investment account #13308973 TOTAL PERSONAL TV: $ 3,732.16 12,500.07 230,265.00 3,172.53 $ 249,669.76 REAL ESTATE: Property consisting of 1.1 acre tract of land located at James Drive, Miller Township, Perry County, Pennsylvania 17,000.00 $ 266,669.76 TOTAL PERSONAL TV AND REAL ESTATE: 00 ~ CO c:::C ;:f - ~;-; 1..0 ~ r~;~ ~ :r:: :~~ ,,~; : ''', .s '0) ()Q) GJ 0:- a:" p \5 :.-.0 :::J:= 0.) = .:30 Page 1 ..21-01- Y~1 DEPARTMENT OF THE TREASURY 201 W. Rivercenter Blvd., Covington KY 41019 ~\b INTERNAL REVENUE SERVICE WI' Internal Revenue Service Center ESTATE TAX CLOSING LETTER (NOT A BILL FOR TAX DUE) Date: August 14, 2002 Estate of SAMUEL A BLACK Decedent's Social Security Number: 176-54-9655 Date of Death: May 8, 2001 Person to Contact: Brian Kaufmann Contact Telephone Number: 1-866-699-4083 KIERNA A BLACK % RICHARD C SNELBAKER 44 WEST MAIN ST MECHANICSBURG PA 17055 Our computation of the Federal tax liability for the above estate is shown at the bottom of this letter. It does not include any interest thatmay be charged. If you have made a request for discharge of personal liability under Section 2204 of the Internal Revenue Code, proof of request and payment of tax will discharge you from personal liability for the tax and any deficiency that may later be found due. This letter and proof of payment, such as canceled checks or receipts, will establish that your personal liability for the tax has been settled. This letter is evidence that the Federal tax return for the estate has either been accepted as filed or has been accepted after an adjustment to which you have agreed. You should keep this letter as a permanent record. Your attorney may need it to close probate proceedings for the estate. This is not a formal closing agreement under Section 7121 of the Internal Revenue Code. We will not reopen this case unless Revenue Procedure 94-68 applies. Sincerely, '-/( . . Field Director, Cincinnati Compliance Service Center. TENTATIVE TAX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LESS: TOTAL GIFT TAXES PAYABLE $0.00 (FOR GIFTS MADE AFTER 12/31/1976) UNIFIED CREDIT $220,550.00 CREDIT FOR STATE DEATH TAXES $0.00 CREDIT FOR FEDERAL GIFT TAXES $0.00 CREDIT FOR FOREIGN DEATH TAXES $0.00 CREDIT FOR TAX ON PRIOR TRANSFERS $0.00 TOTAL SUBTRACTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NET ESTATE TAX GENERATION SKIPPING TRANSFER TAXES TOTAL ESTATE TAXES. . . . . . . .'. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,613.96 $220,550.00 $0.00 $0.00 $0.00 , I t, -dJ / -__rJ COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES INHERITANCE TAX DIVISION DEPT. Z80601 HARRISBURG, PA 171Z8-0601 NOTICE OF INHERITANCE TAX APPRAISEMENT 1 ALLOWANCE OR DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX RICHARD C SNELBAKER U2 SNELBAKER ETAL 44 W MAIN ST MECHANICSBURG DATE ESTATE OF DATE OF DEATH FILE NUMBER COUNTY ACN 04-01-2002 BLACK 05-08-2001 21 01-0484 CUMBERLAND 101 f\F[( -~ -c;u *' / V REV-1547 EX AFP (01-02) SAMUEL A Allount Rellitted l~_, P AcllR;~5 MAKE CHECK PAYABLE AND REMIT PAYMENT TO: REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE1 PA 17013 CUT ALONG THIS LINE ~ RETAIN LOWER PORTION FOR YOUR RECORDS ~ RE-V = iS47-Ex--AFP--foi-:ozl--NcfficE--oF-'rNHEifiTAifcE-TAx-A-PPRA-isEi'-ENT~--A[ioWAifcE-ifR-------------- --- DISALLOWANCE OF DEDUCTIONS AND ASSESSMENT OF TAX ESTATE OF BLACK SAMUEL A FILE NO. 21 01-0484 ACN 101 DATE 04-01-2002 TAX RETURN WAS: (X) ACCEPTED AS FILED CHANGED RESERVATION CONCERNING FUTURE INTEREST - SEE REVERSE APPRAISED VALUE OF RETURN BASED ON: ORIGINAL RETURN 1. Real Estate (Schedule A) 2. Stocks and Bonds (Schedule B) 3. Closely Held Stock/Partnership Interest (Schedule C) 4. Mortgages/Notes Receivable (Schedule D) S. Cash/Bank Deposits/Misc. Personal Property (Schedule E) 6. Jointly Owned Property (Schedule F) 7. Transfers (Schedule G) 8. Total Assets (1) (2) (3) (4) (S) (6) (7) 17.000.00 16.232.23 .00 .00 233.437.53 80.246.79 6.667.35 (8) APPROVED DEDUCTIONS AND EXEMPTIONS: 9. Funeral Expenses/Adll. Costs/Misc. Expenses (Schedule H) 10. Debts/Mortgage Liabilities/Liens (Schedule I) 11. Total Deductions 12. Net Value of Tax Return 13. Charitable/Governllental Bequests; Non-elected 9113 Trusts (Schedule J) 14. Net Value of Estate Subject to Tax (9) (10) 91000.42 .00 (11) (12) (13) (14) NOTE: I~ an assessment was issued previously, lines re~lect ~igures that include the total o~ ALL ASSESSMENT OF TAX: IS. Allount of Line 14 at Spousal rate (IS) 16. Allount of Line 14 taxable at Lineal/Class A rate (16) 17. Allount of Line 14 at Sibling rate (17) 18. Allount of Line 14 taxable at Collateral/Class B rate (18) 19. Principal Tax Due TAX CREDITS: NOTE: To insure proper credit to your account 1 subllit the upper portion of this forll with your tax paYllent. 3531583.90 9 000 42 3441583.48 .00 3441583.48 14, 15 and/or 16, 17, 18 and 19 will returns assessed to date. 3441583.48 X 00 = .00 X 045= .00 X 12 = .00 X 15 = (19)= .00 .00 .00 .00 .00 I "' I n..." I KE[;EIt"T (+J AMOUNT PAID DATE NUMBER INTEREST/PEN PAID (-) TOTAL TAX CREDIT .00 BALANCE OF TAX DUE .00 INTEREST AND PEN. .00 TOTAL DUE .00 · IF PAID AFTER DATE INDICATED 1 SEE REVERSE FOR CALCULATION OF ADDITIONAL INTEREST. IF TOTAL DUE IS LESS THAN $11 NO PAYMENT IS REQUIRED. IF TOTAL DUE IS REFLECTED AS A "CREDIT" (CR)I YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.) \ ~ / t:. -- .;2~? / - ~)~ BUREAU OF INDIVIDUAL TAXES INHERITANCE TAX DIVISION DEPT. 280601 HARRISBURG, PA 17128-0601 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE NOTICE OF DETERMINATION AND ASSESSMENT OF PENNSYLVANIA ESTATE TAX BASED ON FEDERAL ESTATE TAX RETURN * REY-483 EX AFP (01-02> .02 hPH -1 DATE ESTATE OF DATE OF DEATH ~~trE NUMBER COUNTY ACN 04-01-2002 BLACK 05-08-2001 21 01-0484 CUMBERLAND 201 SAMUEL A RICHARD C SNElBAKER SNElBAKER ETAl 44 W MAIN ST MECHANICSBURG PA 17055 Allount Rellitted -\, . l... ,. Cun MAKE CHECK PAYABLE AND REMIT PAYMENT TO: REGISTER OF WIllS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 NOTE: To insure proper credit to your account, subllit the upper portion of this forll with your tax paYllent. CUT ALONG THIS LINE ~ RETAIN LOWER PORTION FOR YOUR FILES ~ iifv:481f-Ex--AFP--(oi~-02)-----j(i-No-ficE--oF--DETifRHIiiATIo-N-ANiD-As;sEss;MENif---------------------------- OF PENNSYLVANIA ESTATE TAX BASED ON FEDERAL ESTATE TAX RETURN .. ESTATE OF BLACK SAMUEL A FILE NO.21 01-0484 ACN 201 DATE 04-01-2002 ESTATE TAX DETERMINATION 1. Credit For State Death Taxes as Verified .00 2. Pennsylvania Inheritance Tax Assessed (Excluding Discount and/or Interest) .00 3. Inheritance Tax Assessed by Other States or Territories of the United States (Excluding Discount and/or Interest) .00 4. Total Inheritance Tax Assessed .00 5. Pennsylvania Estate Tax Due .00 TAX CREDITS: PAYMENT RECEIPT DISCOUNT (+) AMOUNT PAID DATE NUMBER INTEREST/PEN PAID (-) TOTAL TAX CREDIT .00 BALANCE OF TAX DUE .00 INTEREST AND PEN. .00 TOTAL DUE .00 -IF PAID AFTER THIS DATE, SEE REVERSE SIDE (IF TOTAL DUE IS LESS THAN $1, NO PAYMENT IS REQUIRED FOR CALCULATION OF ADDITIONAL INTEREST. IF TOTAL DUE IS REFLECTED AS A "CREDIP' (CRl:l YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS,) STATUS REPORT UNDER RULE 6.12 Name of Decedent: Samuel A. Black Date of Death: 5/8/2001 Will No. 21-01-0484 Admin. No. Pursuant to Rule 6.12 of the Supreme Court Orphans' Court Rules, I report the following with respect to completion of the administration of the above-captioned estate: 1. State whether administration of the estate is complete: Yes No X 2. If the answer is No, state when the personal representative reasonably believes that the administration will be complete: Approx. 3 months 3. If the answer to No. 1 is Yes, ~tate the following: a. Did the personal representative file a final account with the Court? Yes No b. The separate Orphans' Court No. (if any) for the personal representative's account is: c. Did the personal representative state an account informally to the parties in interest? Yes - No d. Copies of receipts, releases, joinders and approvals of formal or informal accoun may be filed with the Cerk of the Orphans' Court and may b' at ac this report. Date: 4/14/03 Richard C. Snelbaker Name (Please type or print) 44 West Main Street Mechanicsburg, PA 17055 Address (717) 697-8528 Te 1. No. Capacity: Personal Representative X Counsel for personal representative (MAH:rmf/AM3) ( ~h Cumberland County - Register Of Wills Hanover and High Street Carlislel PA 17013 of Phone: (71 7) 240 - 6345 Date: 4/09/2003 KIERNA A BLACK 117 EAST MARBLE STREET MECHANICSBURGI PA 17055 RE: Estate of BLACK SAMUEL A File Number: 2001-00484 Dear Sir/Madam: It has come to my attention that you have not filed the Status Report by Personal Representative (Rule 6.12) in the above captioned estate. As per the AMENDMENTS TO SUPREME COURT ORPHANS' COURT RULES I NO. 103 SUPREME COURT RULES DOCKET NO. 11 for decedents dying on or after July 1, 1992, the personal representative or his counsell within two (2) years of the decedent's deathl shall file with the Register of Wills a Status Report of completed or uncompleted administration. This filing will become delinquent on: 5/08/2003 Your prompt attention to this matter will be appreciated. Thank You. SincerelYI DONNA M. OTTO DEPUTY REGISTER OF WILLS cc: .JFile Counsel Judge ~ STATUS REPORT UNDER RULE 6.12 0;~ / Name of Decedent: Samuel A. Black Date of Death: 5/8/2001 Will No.: 21-01-0484 Admin. No.: Pursuant to Rule 6.12 of the Supreme Court Orphans' Court Rules, I report the following with respect to completion of the administration of the above-captioned estate: 1. State whether administration of the estate is complete: Yes ~ No 0 2. If the answer is No, state when the personal representative reasonably believes that the administration will be complete: 3. If the answer to No.1 is Yes, state the following: a. Did the personal representative file a final account with the Court? Yes _x No 0 b. The separate Orphans' Court No. (if any) for the personal representative's account is: c. Did the personal representative state an account informally to the parties in interest? Yes 0 No 0 c. Copies of receipts, releases, joinders and approval of formal or informal accounts may be file ith he Clerk of the Orphans' Court and may be attached to this X port. Date:~2/03 Richard C. Snelbaker N~4 West Main Street Mechanicsburg, PA 17055 ""- ::'-J Address . ' ~',. '-. ,..,.... (717) 697-8528 Telephone No. Capacity: 0 Personal Representative UCounsel for personal representative 4 ~. REV-1500 EX + (6-00) OFFICIAL USE ONLY COMMONWEALTH OF PENNSYLVANIA REV-1500 I {,-;)3 /-5 DEPARTMENT OF REVENUE DEPT. 280601 INHERITANCE TAX RETURN FILE NUMBER HARRISBURG, PA 17128-0601 RESIDENT DECEDENT 21 2001 0484 COUNTY CODE YEAR NUMBER DECEDENT'S NAME (LAST, FIRST, AND MIDDLE INITIAL) SOCIAL SECURITY NUMBER Black, Samuel Andrew 176-54-9655 DECE - DATE OF DEATH (MM-DD-YEAR) I DATE OF BIRTH (MM-DD-YEAR) THIS RETURN MUST BE FILED IN DUPLICATE DENT 05/08/01 05/08/1959 WITH THE REGISTER OF WILLS (IF APPLICABLE) SURVIVING SPOUSE'S NAME (LAST, FIRST, AND MIDDLE INITIAL) SOCIAL SECURITY NUMBER Black, Kierna A, 3 Remainder Return CHECK ~ ,. Original Return ~ 2. Supplemental Return ~ (date of death prior to 12-13-82) APPRO- 4. Limited Estate 48. Future Interest Cornpr()r~15e 5 Federal Estate Tax Return Required (dateot death Jtter 12-12-32) PRIATE 6 Oece:::er: D'ed Testa;e 7 Decedent Malntaineda LlvmgTrust 0 8. Total Number of Safe Deposit Boxes (Attach copy.JiWill) (Attach acopyat Trust) BLOCKS 9. Litigation Proceeds Received 10 Spousal Poverty Credit(dateoi death between 0 11 Elecllontotaxunde' :.e:.91131"" 1Z-31-91and1-1-95) (Attach Sch 0) :rljl!lcSECT1()N/iilU$'t~EqpMe4E:tSI),AWc61\I\s$PPNbSNCS~j:;9NF!Pl;l'lT!ALT,,*li'I~QI!MAtlON$HOQU:lBEbIR~C:rEOTOi NAME COMPLETE MAILING ADDRESS COR- Richard C. Snelbaker 44 West Main Street RE- FIRM NAME (If Applicable) Mechanicsburg, PA 17055 SPON & Snare, DENT Snelbaker, Brenneman P,C. TELEPHONE NUMBER 717-697-8528 :1(.. OFFICIAL USE ONLY ,. Real Estate (Schedule A) (1) 17,000,0e: if d 2. Stocks and Bonds (Schedule 8) (2) 16,232.2~. =.- N 3. Closely Held Corporation, Partnership or Sole-Proprietorship (3) None '"r1 4. Mortgages & Notes Receivable (Schedule 0) (4) None "., CD 5. Cash, Bank Deposits & Miscellaneous Personal I Property (Schedule E) (5) 233,437.53 CO 6. Jointly Owned Property (Schedule F) . -0 0 Separate Billing Requested (6) 80,246,7fJ c..) RECA- I:', ::; 0', PITULA- 7. Inter-Vivos Transfers & Miscellaneous TION Non-Probate Property (Schedule G or L) (7) 6,667,35 8. Total Gross Assets (total Lines 1-7) (8) 353,583.90 9. Funeral Expenses & Administrative Costs (Schedule H)(9) 9,000.42 10. Debts of Decedent, Mortgage Liabilities, & Liens{Schedule I) (10) None ". Total Deductions (total lines 9 & 10) (11) 9,000.42 12. Net Value of Estate (Line 8 minus Line 11) (12) 344,583 .48 13. Charitable and Governmental Bequests/See 9113 Trusts for which an election to tax (13) None has not been made (Schedule J) 14. Net Value Subject to Tax (Line 12 minus line 13) (14) 344,583.48 SEE INSTRUCTIONS ON PAGE 2 FOR APPLICABLE RATES 15. Amountol Line 14taxableatthespousal tax rate, or transfers under Sec. 9116(a)(1.2) 344,583.48 X .0 0 (15) 0.00 TAX 16. Amountol Line 14 taxable at hneal rate 0.00 X .0 45 (16) 0.00 - 0.00 COMPU- 17. Amountoi Line 14 taxable at sibling rate 0,00 X .12 (17) T A TION 18. Amountol Line 14 taxable at collateral rate 0,00 X .15 (18) 0.00 19. Tax Due (19) 0.00 20. 0 ICHECKHI$!'l!;!/"'t()IJAREREQIlE$"l'lNQAf!I$\W",QQfAil/O\IERiitAvI\lElfiCI o PA15001 NTF 291S~ >> BE SURE TO ANSWER ALL QUESTIONS ON. PAGE ~. ANI) RECHECK MATH"'. Copyright 2000 Great:andINelco LP - Forms ,software Only PA REV-1500 EX (6-00) Decedent's Complete Address: Page 2 STREET ADDRESS 11 7 East Marble Street Bora of Mechanicsburg, Cumberland Ctv. CI1Y I STATE I ZIP Mechanicsburq PA 17055 Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount (1) 0.00 Total Credits (A + B + C) (2) J.JO :J Interest/Penalty if applicable D. Interest E. Penalty Total Interest/Penalty (0 + E) 4 If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Check box on Page 1 Line 20 to request a refund 5 If Line 1 + Line 3 IS greater than Line 2. enter the difference. This is the TAX DUE. A. Enter the interest an the tax due. S. Enter the total of line 5 + 5A This is the BALANCE DUE. Make Check (3) 0.00 (4) (5) 0.00 (5A) 0.00 (58) 0.00 1. Did decedent make a transfer and: a. retain the use or income of the property transferred: b. retain the right to designate who shall use the property transferred or its income; c. retain a reversionary interest; or. d. receive the promise for life of either payments, benefits or care? If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. Yes No ~ I B ~ 2. 3. 4. o o Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it IS true, correct and complete. Declaration of preparer other than the personal representative is based on information of which preparer has any knowledqe. SIGNATU F PERSO~ RESPONSI8L~TPR FILING RETURN DA E /. 'V'I~--J / ...1 7 0 attached OTHER THAN REPRESENTATIVE DAT !c ? C.:L. an or LIse survIving spouse IS [n P.S. 8 9116 (a)(1.1)(i)]. For dates of death on or after January 1 1995, the tax rate rS Imposed on the net value aftransters to ortorthe useof thesurv,v'ng spouse IS 0010[72 P,5. 89116Ia)!1,1)li'l] The statute nn",,,,- nfl! "~..mnj a transfer to a surviving spouse tram tax, and the statutory requ,rements tor disclosure ot assets and tiling a lax return are st,11 applicable even It the surviving spouse is the only beneficiary. For dates of death on orafterJuly 1,2000 The tax rate imposed on the net value of transfers ham a deceased child twenty-one years of age or younger at death to or forthe use of a natural parent, an adoptive parent, ora stepparent of the child is 0% [n P.S. 89116(a)(1,2)]. The tax rate imposed on the net value 01' transfers to or for the use at the decedent's lineal beneficiaries is 4.5%, except as noted in n.p.s. fj 9116(1.2) [72 P.S,fj9116(a)(1)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12% [72 P.S. 89116(a)(1,3)], A sibling is defined, under Section 9102, as an individual who has at least one parent,n common with the decedent, whether by blood or adoption o PA15002 :.JTF 291~,3 o'-'''gr' 2000 Cirealland/Nelco :"'P- Furrrs So,tware Onlv Estate of: Samuel Andrew Black 21-2001-0484 The following person (s) are signing the return as representative (s) of the estate: Kierna A. Black 117 East Marble Street Mechanicsburg, PA 17055 REV-1502 EX + (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Samuel Andrew Black SCHEDULE A REAL ESTATE FILE NUMBER 21-2001-0484 All real property owned solely or as a tenant In common must be reported at fair market value. Fair market value is defined as the price at which property would be exchanged between a w[l1ing buyer and a willing seller, neither being compelled to buy or sell, both having reasonable knowledge of the relevant facts, Real property which Is Jointly-owned with right of survivorship must be disclosed on Schedule F. ITEM NO. DESCRIPTION VALUE AT DATE OF DEATH 1 Property consisting of 1.1 acre tract of land located at James Drive, Miller Township, Perry County, Pennsylvania (appraisal attached) 17,000.00 7 CPA21 NTF 10904 Copyr'ght Forms Soltware OnlY, 1997 Nelco, :nc. TOTAL (Also enter on line 1, Recapitulation) $ (If more space is needed insert additional sheets of the same size) 17,000.00 APPRAISAL REPORT OF A l.l-ACRE TRACT OF LAND LOCATED AT JAMES DRIVE, MILLER TOWNSHIP PERRY COUNTY, PENNSYLVANIA .. II I . . .. . II .. II d PREPARED FOR THE ESTATE OF SAMUEL A. BLACK AS OF MAY 8, 2001 BY LARRY E. FOOTE DIVERSIFIED APPRAISAL SERVICES EAST mGH STREET, SUITE 101 CARLISLE, PENNSYL VANIA 17013-3052 (717) 249-2758 "';';';;"'::" ~-- ql, ~] ~ II II! III III -.! "I! SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS LOCATION: James Drive, Miller Township Perry County, Pennsylvania TAX PARCEL NUMBER: 160,047.02-015.000 DESCRIPTION: A I. I-acre tract of vacant land. PROPERTY RIGHTS: Fee simple interest. IIi II! III .i SCOPE OF THE ASSIGNMENT: The scope of the assignment included an analysis of the subject's area, an inspection of the subject property, an estimation of the property's highest and best use, consideration of all three approaches to value, and the application of those relevant to the valuation of the subject. OBJECTIVE: To estimate the market value of the subject property as unencumbered. EFFECTIVE DATE: As of May 8,2001. IDGHEST AND BEST USE: Use as a vacation home building lot. COST APPROACH: N.A. SALES APPROACH: $17,000 .1 INCOME APPROACH: N.A. .: .1 .1 . . . FINAL VALUE CONCLUSION: $17,000 2 Rr RI APPRAISAL CERTIFICATION -: - ~. "I' .. I hereby certifY that upon application for valuation by: THE ESTATE OF SAMUEL A BLACK the undersigned personally inspected the following described property: All that certain piece or parcel ofland situate in the Township of Miller, Perry County, pennsylvania, bounded and described as follows: . Beginning at an iron pin at the southwestern comer of Lot No. 16 on a Plan of three lots surveyed by Earl D. Palm, R.S., in November of 1969 on the northern side of the Old pennsylvania Canal Towpath, now owned by the Penn Central Railroad Company; thence by the northern side of the Old Pennsylvania Canal Towpath, now the Penn Central Railroad Company, South 38 degrees 32 minutes West, 150 feet to an iron pin; thence North 32 degrees 30 minutes West, 342 feet to a point at the low water mark of the Juniata River; thence along the southern bank of the Juniata River in a northeasterly direction by its various courses, 150 feet, more or less, to a point at the norlthwestern comer of Lot No. 16 in the aforementioned Plan of Lots; thence by the western side of Lot No. 16, South 32 degrees 30 minutes East, 315 feet to an iron pin on the northern side of the said Towpath, the place of beginning. . q . .! . .' . . d . . Containing 1.1 acres, more or less, and being Lot No. 17 in a Plan of survey conducted by Earl D. Palm, RS., in November of 1969, and being an extension of the Plan of Lots of Ralph Bretz, as recorded in Perry County Plan Book 4, Page 69. To the best of my knowledge and belief the statements contained in this report are true and correct, and that neither the employment to make this appraisal nor the compensation is contingent upon the value reported, and that in my opinion the Market Value as of May 8, 2001 is: SEVENTEEN THOUSAND DOLLARS $17,000 The property was appraised as a whole, subject to the contingent and limiting conditions outlined herein. ~~ L~ote Certified General Appraiser GA-000014-L 3 -.. 01.. ,.1. , ~. .ii.' ,.., .. . PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the Market Value of the subject property as of May 8,2001. Market Value, as defined by the courts, is the most probable price estimated in terms of money which a property will bring if exposed for sale in the open market, allowing a reasonable time finding a purchaser who buys with knowledge of all the uses to which it is adapted and for which it is capable of being used. .; Frequently, it is referred to as the price at which a willing seller would sell and a willing buyer would buy, neither being under abnormal pressure. . . II .. .. . I.__ I II I I :' 11 . - I ~ r- mGBEST AND BEST USE Highest and Best Use is defined by the Appraisal Terminology and Handbook, published by the Appraisal Institute, as "the most profitable likely use to which a property can be put". The opinion of such use may be based on the highest and most profitable continuous use to which the property is adapted and needed, or likely to be in demand, in the reasonable near future. However, elements affecting value that depend upon events or a combination of occurrences which, while within the realm of possibility, are not fairly shown to be reasonably probable, should be excluded from consideration. Also, if the intended use is dependent on an uncertain act of another person, the intention cannot be considered. Based on the above definition and after seeing the site, neighborhood, and area, it is my opinion that use of the subject as a vacation home building site is its Highest and Best Use. 4 Ii i1 , , I M I ; , I ~ . , I ~ - - , I i I , I i . SITE DATA ADDRESS: Lot No. 17 James Drive TOWNSHIP: Miller COUNTY: Perry STATE: Pennsylvania LOT SIZE: Approximately 1.1 acres. SEWERS: None on site. WATER: None on site. LANDSCAPING: Typical for the area, with a sodded lawn and trees. DETRIMENTAL INFLUENCES The subject property is located in a FEMA identified flood hazard area. DESCRIPTION OF THE SITE The subject site consists of a vacant tract of land containing approximately 1.1 acres. The site has approximately 150 linear feet of gravel road frontage along the cartway known as James Drive and approximately 150 linear feet of frontage along the Juniata River. The lot extends in depth approximately 342 linear feet on one side and approximately 315 linear feet on the other side. The site is level throughout, and there does not appear to be any drainage problems. According to the Federal Emergency Management Agency map number 421954-0010- A, the site is located in an area that is prone to flooding. I I m I I I I I I n I I I I I I I I I THE APPRAISAL PROCESS Three approaches to value are generally included in an appraisal report. These techniques include the cost approach, sales comparison approach, and income approach to value. The cost approach to value is based on the assumption that the reproduction cost of a building plus land value, tends to set the upper limit to value. A key assumption is that a newly constructed building would have advantages over the existing building, therefore an evaluation focuses upon disadvantages or deficiencies (depreciation) of the existing building compared to a new facility. The sales comparison approach to value assumes that under normal conditions, a given number of parties acting intelligently and voluntarily, tend to set a pattern from which value can be estimated. Application of this approach relies on a comparison of the subject with a sufficient number of recent transactions of comparable properties in the market, based on a common unit, such as price per square foot of building area or price per acre. The income approach concerns itself with present worth of the future potential benefits of a property. The initial estimate involves the net income, which a fully informed person is justified in assuming the property will produce during its remaining useful life. This estimated net income is then capitaIized into a value estimate, based upon the level of risk as compared with that of a similar type and class. Since the subject property consists of a vacant tract of land or existing improvements have insignificant value, in accordance with the departure provision of the Uniform Standards of Professional Appraisal Practice, only the sales comparison approach to value has been applied to the subject property and is subsequently presented. 6 SALES COMPARISON APPROACH In arriving at this conclusion of the value of the subject property, the appraiser made a survey of properties that have sold in the area of the subject property. Consideration was given and adjustments were made on each comparable sale as to time of sale, size, location, as well as all other factors that might affect value. A resume of some of the sales considered by the appraiser is as follows: SALE NO. I: Location: Parcel No.: Date of Sale: Deed Ref.: Sale Price: Size: Unit Price: Grantor: Grantee: SALE NO.2: Location: Parcel No.: Date of Sale: Deed Ref.: Sale Price: Size: Unit Price: Grantor: Grantee: SALE NO.3: Location: Parcel No.: Date of Sale: Deed Ref.: Sale Price: Size: Unit Price: Grantor: Grantee: Lot NO.6 Lower Bailey Road, Miller Township bordering the Juniata River. 160,047.03-018.000 July 12, 1995. Book 880, Page 170. $12,000 1.89 acres. $6,349 per acre. Rick L. Snyder. Cameron E. Drum. 106 Juniata Parkway East, Howe Township bordering the Juniata River. 80,047.02-019 December 1, 1998. Book 1144, Page 69. $20,000 .74 acre with a 1968 mobile home in fair condition. $27,027 per acre, including the mobile home. Paul R. Matz. Robert E. and Reba M. Fenicle. Juniata Parkway East, Howe Township bordering the Juniata River. 80,017.02-030 February 1,2001. Book 1340, Page 224. $14,000 .45 acre. $31,111 per acre. Joyce A. Leo. Christine C. Campbell. 7 8 The appraiser, in addition to the sales listed, also considered several additional sales in arriving at his final opinion of value. On the Sales Comparison Analysis form that follows this page are dollar adjustments reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to, or more favorable than, the subject property, a minus (-) adjustment is made, thus reducing the indicated value of the subject; if a significant item in the comparable is inferior to, or less favorable than, the subject property, a plus (+) adjustment is made, thus increasing the indicated value of the subject. After making all of the necessary adjustments, it is the appraiser's considered opinion that the indicated value of the subject property by the Sales Comparison Approach is $17,000. SALES COMPARISON ADJUSTMENTS SALE #1 SALE #2 SALE #3 Sale Price $12,000 $20,000 $14,000 Time +3,600 +3,000 Mobile Home, Well & Septic -10,000 Land Size -4.000 + 1.800 +3.300 Net Adjustment -400 -5.200 +3.300 Indicated Value: $11,600 $14,800 $17,300 The appraiser has analyzed comparable sales and has developed dollar adjustments, reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to, or more favorable than the subject property, a minus (-) adjustment is made, thus reducing the indicated value of the subject; if a significant item in the comparable is inferior to, or less favorable than the subject property, a plus (+) adjustment is made, thus increasing the indicated value of the subject. 9 II n ~ ~ I I I I I I I I , 1'"_ .._. CORRELATION Correlation may be defined as "the bringing together of parts in a proper relationship." The parts of this appraisal report are the following approaches to value your appraiser used: Value Indicated by Cost Approach Value Indicated by Sales Comparison Approach Valut Indicated by Income Approach N.A. $17,000 N.A. These approaches are representative of the market value of the subject property. I have carefully reexamined each step in each method, and I believe the conclusions accurately reflect the attitude of typical purchasers of this type property in this neighborhood. It is my belief that this reexamination has confirmed the original conclusions. The Sales Comparison Approach was based on several recent sales of properties similar to that of the subject, all of which are located in the same general area. The adjusted sales prices are most consistent under comparison. This approach is the most reliable because it reflects the reactions of typical buyers and sellers in the market. Therefore, as a result of this appraisal and analysis, it is this appraiser's considered judgment and opinion that the Market Value of the subject property, as of May 8,2001, is: SEVENTEEN THOUSAND DOLLARS $17,000 10 I . < lIU .. It) ~ ~ q . III . .. . . . q . II . III, "..-, , III :.~ ,- ' UNDERLYING ASSUMPTIONS AND LIMITING CONDmONS SUBJECT TO THIS APPRAISAL 1. I assume no responsibility for matters legal in nature, nor do I render any opinion as to the title, which is assumed to be marketable. The property is appraised as though under responsible ownership. 2. The legal description used herein is correct. 3. I have made no survey of the property, and the boundaries are taken. from records believed to be reliable. 4. I assume that there are no hidden or unapparent conditions of the property, subsoil or structures which would render it more or less valuable. I assume no responsibility for such conditions or for engineering which might be required to discover such factors. 5. The information, estimates, and opinions furnished to me and contained in this report were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy can be assumed by me. 6. This report is to be used in its entirety and only for the purpose for which it was rendered. . . 7. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser or the firm with which he is connected) shall be reproduced, published, or disseminated to the public through advertising media, public relations media, news media, sales media, or any other public means of communication, without the prior written consent and approval of the appraiser. 8. This appraisal was prepared for the exclusive use of the client identified in this appraisal report. The information and opinions contained in this appraisal set forth the appraiser's best judgment in light of the information available at the time of the preparation of this report. Any use of this appraisal by any other person or entity, or any reliance or decisions based on this appraisal are the sole responsibility and at the sole risk of the third party. The appraiser accepts no responsibility for damages suffered by any third party as a result of reliance on or decisions made or actions taken based on this report. 11 II. I . . . .. .. . III . . ,. II II ~, CERTIFICATE OF APPRAISAL Your appraiser hereby certifies that: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. I have no present of prospective interest. in the property that is the subject of this report, and no personal interest with respect to the parties involved. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. To the best of my knowledge and belief; the statements of fact contained in this appraisal report, upon which the analyses, opinions, and conclusions expressed herein are based, are true and correct. 8. This appraisal report sets forth all of the limiting conditions (imposed by the terms of my assignment or by the undersigned) affecting the analyses, opinions, and conclusions contained in this report. 9. This appraisal report has been made in conformity with the Uniform Standards of professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation, and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the National Association of Realtors Appraisal Section. 12 II, . " .' II .. III .. . . \8 I i ~ I \ I ( I , I ~'.., ,. ,;. I i I , b' . 10. No one other than the undersigned prepared the analyses, conclusions, and opinions concerning real estate that are set forth in this appraisal report. Larry E. Foote Certified General Appraiser GA-OOOO1 4-L 13 I;~ .. II . II q . II . .. II II - LARRY E. FOOTE REAL ESTATE APPRAISER EXPERIENCE: I 979cPresent: Chief Appraiser, Diversified Appraisal Services,. Carlisle, Pa. Principal Broker, LaRue Development Company, Carlisle, Pa. 1976-1979: Associate Broker, Colonial Realty, Carlisle, Pa. 1972-1976: Realtor Associate, Jack Gaughen Realtor, Carlisle, Pa. Appraisal experience included undeveloped land, fanns, building lots, single-family dwellings, mobile home parks, medical centers, nursing homes, motels, apartment buildings and complexes, office buildings, service stations, veterinary clinics, rehabilitation centers, retail buildings, daycare centers, warehouses, and manufacturing facilities. EDUCATION: Bachelor of Business Administration, Pennsylvania State University, 1976. Associate Bachelor of Business Administration, Harrisburg Area Community College, 1974. Diploma, Carlisle Senior High School, 1965. Certificate, Pennsylvania Realtors Institote, GRI I, GRI II, GRI III. Certificate, Realtors National Marketing Institute, CI 101, CI 102, CI 103, CI 104, CI 105. Standards of Professional Practice, American Institute of Real Estate Appraisers. Real Estate Appraisal Principles, American Institute of Real Estate Appraisers. Residential Valuation, American Institute of Real Estate Appraisers. Appraisal Procedures, Appraisal Institute. Principles of Income Property Appraising, Appraisal Institute. Case Studies in Real Estate Valuation, Appraisal Institute. Report Writing and Valuation Analysis, Appraisal Institute. PROFESSIONAL LICENSES: General Appraiser #GA-OOOOI 4-L, Commonwea1th of Pennsylvania. Real Estate Broker #RB-029729-A, Commonwealth of Pennsylvania. PROFESSIONAL DESIGNATIONS: GRI: Graduate of the Pennsylvania Realtors Institute, awarded by the Pennsyl- vania Association of Realtors. CRS: Certified Residential Specialist, awarded by the Realtors National Market- ing Institute of the National Association of Realtors. CCIM: Certified Commercial Investment Member, awarded by the Realtors National Marketing Institute of the National Association of Realtors. PROFESSIONAL ORGANIZATION AFFILIATIONS: National Association of Realtors Appraisal Section. Carlisle Association of Realtors. Pennsylvania Association of Realtors. National Association of Realtors. Realtors National Marketing Institute. 14 . II II .. .. q . II .. .. . . c. , ,.; PAST CLIENTS: Borough of Carlisle Keystone Financial Mortgage Cornerstone Federal Credit Union Pennsylvania State Bank Commerce Bank Cumberland-Peny Association for Retarded Citizens Carlisle Suburban Authority Members I" Federal Credit Union Pennsylvania National Bank Evans Financial Corporation Greenawalt & Company, CPA Smith's Transfer Corporation Carlisle Department of Parks and Recreation Executive Relocation Services Carlisle Area School District Messiah Homes, Incorporated ERA Eastern Regional Services Pennsylvania Turnpike Commission Chase Home Mortgage Corporation Defense Activities Federal Credit Union Pennsylvania State Employees Credit Union PNC Mortgage Corporation F&M Trust Company National City Mortgage Corporation Washington Mutnal Home Loans, Inc. Prudential Relocation Services Lender's Choice Market Intelligence, Incorporated United Telephone Employees Federal Credit Union Cumberland County Commissioners Allstate Enterprises Mortgage Corporation Dickinson College PPG Industries, Incorporated Gettysburg College Redevelopment Authority of Cumberland County Record Data Appraisal Services, Incorporated First United Federal Savings Association Fuhon Bank United States Marshall Service GMAC Mortgage Corporation Orrstown Bank Letterkenny Federal Credit Union BancPlus Mortgage Corporation Coldwell Banker Relocation Services, Incorporated Central Pennsylvania Savings Bank Mellon Bank Provident Home Mortgage Corporation Various law firms and individuals 15 .. . . . . -- -- ill .. PHOTOGRAPH OF THE SUBJECT PROPERTY 16 REV-1503 EX. (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Samuel Andrew Black SCHEDULE B STOCKS & BONDS FILE NUMBER 21-2001-0484 All property Jointly-owned with right 01 survivorship must be disclosed on Schedule F. ITEM NO. DESCRIPTION VALUE AT DATE OF DEATH 1 IBM, 32 shares of commn stock, valued at $116.63 per share. 3,732.16 2 Affinity Online, Inc., 37,879 shares of commn stock valued at .33 cents per share 12,500.07 TOTAL (Also enter on line 2. Recapitulation) $ (If mare space is needed, insert additional sheets of the same size) 16,232.23 7 CPA31 NTF 10905 COPYright Forms Software Only. 1997 NelcQ. Inc. REV-1508 EX + (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Samuel Andrew Black SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY FILE NUMBER 21-2001-0484 ITEM NO. DESCRIPTION InClude proceeds of litigation & date proceeds were received by the estate. All prop. lolntly-owned with right 01 survivorship must be disclosed on Sch. F. VALUE AT DATE OF DEATH 1 S.H. Black and Sen, Inc., 51% ownership calculated as follows: 230,265.00 Ownership is as follows: Samuel Andrew Black - 51% Joanne M. Black - 49% Fair Market value of Corporation's common stock is the total of the following: a) Appraisal of business by Srroker, Smith & Associates, P.C. is $425,000.00 b) Motor vehicles: 1) 1991 Buick Regal $ 500.00 2) 1996 GMC 3/4 Ton pickup $12,000.00 3) 2000 Chevy van $14,000.00 $26,500.00 Total value of Decedent's 51% share: $230,265.00 Calculated as follows: $425,000.00 + $26,500.00 = $451,500.00 X 51% = $230,265.00 2 J.P. Turner & Company, L.L.C., investment account #13308973 3,172.53 7 CPA81 NTF 10908 Copynght Forms Software Only, 1997 Nelco, Inc. TOTAL (Also enter on line 5, Recapitulation) $ (If more space is needed, insert additional sheets of the same size) 233,437.53 ,., '. . S. H. BLACK AND SON, INC. Valuation Analysis December31, 2000 ..-.1 .~ , -! . CONTENTS INTRODUCTION ........................................................................................................................................ 3 BACKGROUND, S. H. BLACK & SON, INCORPORATED..................................................................5 FINANCIAL INFORMA TION ................................................................................................................... 5 ADJUSTMENTS TO FINANCIAL INFORMA TION.............................................................................. 5 V ALUA TION METHOD.............................................................................................................................6 CONTROL.................................................................................................................................................... 7 LEVEL OF VALUE ..................................................................................................................................... 7 V ALUA TION ANAL YSIS CONCLUSIONS............................................................................................. 7 ADDITIONAL CONTROL PREMIUM .................................................................................................... 8 SUMMARY OF VALUATION ANALySIS.............................................................................................. 9 EXHmITS COMPILED FINANCIAL STATEMENTS EXIDBIT A ADJUSTMENTS TO NET INCOME AND WEIGHTED AVERAGE NET INCOME EXIDBIT B WEIGHTED AVERAGE COST OF CAPITAL EXIDBIT C APPENDICES STATEMENT OF CONTINGENT AND LIMITING CONDITIONS APPENDIX A APPRAISAL CERTIFICATION APPENDIX B PROFESSIONAL QUALIFICATIONS OF PRINCIPAL APPRAISER APPENDIX C I . I I _J "..'"""'~" . ,,'- ~ ; \. " "I- .. ., .....~....."..~ SMOKER, SMITH ~ - & ASSOCIATES _ P.C. = CERTIFIED PUBLIC ACCOUNTANTS July 17, 2001 PERSONAL AND CONFIDENTIAL Mr. Samuel Black, President S. H. Black and Son, Inc. 106 North Walnut Street Mechanicsburg, P A 17055 RE: Valuation Analysis, S. H. Black and Son, Inc. (The Company) Dear Sam: We have completed a valuation analysis of S. H. Black and Son, Inc. (an S-Corporation), as of December 31,2000. The purpose of the valuation analysis is to estimate the fair market value of a 100% interest in the common stock of the Company, for planning purposes. A valuation analysis is limited in scope to a calculation of value using one or more selected methods we believe to be appropriate, and the presentation of the results for your consideration. A valuation analysis should not under any circumstances be construed as an opinion of fair market value. Rather, the value calculations performed are intended to indicate only an estimate of value of a 100% ownership interest in the Company for the purpose stated above. If additional procedures were performed, the results of the valuation analysis could change, and the extent of the change could be significant. STANDARD OF VALUE: The standard of value used in this appraisal is one of fair market value. Fair market value is the price at which the subject securities would change hands between a hypothetical willing buyer and willing seller, with both having reasonable knowledge of all relevant facts, and neither party being under any compulsion to buy or sell. Fair market value also assumes that the price is paid all in cash or its economic equivalent at closing. Hershey ()ff1('e: 339 West Governor Road, Hershey, PA 17033 . (717) 533-5154 . Fax (717) 533-1442 . Toll Free (888) 277-1040 Mechanicsburg Office: 2000 Technology Parkway, Suite 150 . Mechanicsburg, PA 17050 . (717) 441-9069 . Fax (717) 441-9068 Members of American and Pennsylvania Institutes of Certified Public Accountants www.ssa-pc.com 4. INPACT 0,.,,,...-.0",, . Allii IE ; :;,~l,;; SOURCES OF INFORMATION: The historical financial information presented in the exhibits to this report is included solely to assist in the development of the valuation conclusion presented in this report. It should not be used to obtain credit or for any other purposes. We were provided with certain internally and externally prepared and reviewed financial and operational data for the Company. We have relied upon all data as fairly representing the results of operations and the financial position of the Company. We have not audited, reviewed, or compiled the data as part of our valuation analysis. Therefore, we express no opinion or other form of assurance regarding the data, as such work was outside the scope of this appraisal engagement. Based on our analysis, the estimated fair market value of a 100% interest in the common stock of S. H. Black and Son, Inc. as of December 31,2000 is $325,000 to $425,000. This conclusion excludes the following: value of real estate located at 20 I Walnut Street, value of a 1991 Buick Regal, value of a 1996 GMC % ton pickup and a 2000 Chevy Van. The results of our valuation analysis are subject to the contingent and limiting conditions discussed in Appendix A and appraisal certifications discussed in Appendix B. _I We appreciate this opportunity to serve you. Very truly yours, SMOKER, SMlTI:I & ASSOCIATES, P.C. ~~tP~~q Reuel R. Deppen, CPA, CV A J S. H. BLACK AND SON, INCORPORATED. S. H. Black and Son was incorporated on January 15,1997. . According to the Company's federal income tax returns, as of December 31, 2000, owners of the issued and outstanding common stock shares are: S. Andrew Black Joanne M. Black 51% 49% We understand there are no written or informal agreements which control the transfer of company stock shares, and that since inception, there have been no sales, purchases, or transfers of company stock. The Company's office facility, which is owned by S. Andrew and Kiema Black, is located at 106 North Walnut Street, Mechanicsburg, PA. The Company is primarily engaged in residential fire restoration construction services, general residential and commercial construction and cleaning services. The Company maintains a relationship as 'a franchisee' of Fabrizone Carpet, Upholstery and Duct Cleaning Professionals. The Company operates with approximately 25 employees. We understand there are no employment agreements with any officers or employees. FINANCIAL INFORMATION Financial information for the calendar years 1998 to 2000, obtained from the Company's compiled financial statements (prepared by other certified public accountants on the accrual method of accounting) are attached as Exhibit A. The Company is taxed as an "s" Corporation, so the financial information does not include corporate level income tax expenses. ADJUSTMEJI.'TS TO FINANCIAL INFORMA nON We adjusted the financial information to normalize owner's wages, adjust cost of sales, record estimated corporate income tax obligations, and to adjust for certain expenses that may be considered discretionary. These adjustments were reviewed with you and are summarized in Exhibit B. Adjusted net income is used in determining our estimate of value. 5 VALUATION METHOD We used the capitalization of earnings method to estimate the value of 100% of the common stock of S. H. Black & Son, Inc. The capitalization of earnings method determines value by estimating the economic income for the next accounting period (in this case a year), and then dividing that amount by a single number called the capitalization rate. We consider weighted average adjusted income for the years 1998 to 2000 to be the best indicator of income for the following year. Weighted average income for the years 1998 to 2000 is $78,072 (see Exhibit B). Income Year Weight Weighted 55,982 1998 1 55,982 66,263 1999 2 132,527 93,307 2000 3 279,921 Weighted Average = $78.072 . ] ! The capitalization rate is a measure of the risk associated with the estimated income. Risk is commonly defined as the degree of certainty or uncertainty as to the realization of expected returns (Pratt). We have calculated the Company's capitalization rate using Weighted Average Cost of Capital (W ACC). (See Exhibit C). W ACC is calculated based on the company's respective amounts of debt and equity. As of December 31, 2000, the company's capital structure is approximately 18% debt and 82% equity (based on estimated fair market value of equity). The company's capitalization rate, calculated using weighted average cost of capital, is 22.0%. I .J 6 CONTROL Control is defined as "the power to direct the management and policies of a business enterprise". Majority control is defined as "the degree of control provided by a majority interest". A majority interest is defined as "an ownership interest greater than fifty percent of the voting interest in a business enterprise". LEVEL OF VALUE The capitalization of earnings method may result in a conclusion that reflects a marketable minority interest or a conclusion that reflects a controlling interest value. "Almost all of the difference in control versus minority value in the income approach is found in the numerator - the expected income, rather in the denominator - the capitalization rate (pratt)." If NO adjustments are made to earnings, the result most likely reflects a minority value. If adjustments are made to earnings, results are more likely to reflect control value. We have made certain adjustments to earnings that are indicative of a majority interest. Accordingly, the conclusion resulting from this method is NOT considered to be a minority value. I V ALUA nON ANALYSIS CONCLUSIONS Our valuation analysis indicates the estimated fair market value of a 100% interest in the common stock of S. H. Black & Son, Inc. (before considering an additional control premium) as of December 31,2000 is: Weighted Average Income Capitalization Rate $ 78.072 22.00% Entity Value $354,871 Less, Long-Term Debt (31.994) Value of Equity $322.877 Say $325.000 I J 7 ADDmONALCONTROLPREMIUM Based on our discussions with management, and our analysis of the company's financial information, we noted the company conducts substantial business in fire restoration work. About 60% of year 2000 sales are from fire restoration work. We understand the company's current management has "preferred" relationships with at least three area insurance companies and their adjusters. Contractors working in the insured damages industry bid on work differently. Often there is a set of "pre-agreed" values for each type of work done. Generally, a "premium" is buried within the "pre- agreed" rates.1 Insurance Companies prefer: I . A contractor with a working knowledge of the relationship between the contractor, policyholder, and insurance company. . A knowledge of the internal format and structure of the cost of the repair analysis process . A reasonable "arms length" relationship A willing buyer may place significant value on these relationships if they are transferable and "introduce" the buyer to prefe=d insurance company relationships. A willing buyer may place less value on the relationships if they are not transferable or they merely enhance existing relationships maintained by the buyer. While we have made certain financial adjustments to address control prerogatives, we believe an additional control premium to reflect value that may be inherent in the existing "preferred" relationships with insurance companies is appropriate. We have applied an additional control premium equal to 29 percent.2 Estimated Value without Additional Control Premium Additional Control Premium (29%) $354,871 102.913 Entity Value with Additional Control Premium 457,784 Less, Long-Term Debt 01.994) Value of Equity $425.790 Say ~25.00.!l 1 Assured Contractors Expeditiary Services 2 Control premium based, in part, on data from Mergerstat Review 8 _J SUMMARY OF VALUATION ANALYSIS Based on the Company's historical and anticipated financial results, and various qualitative factors, our estimated value of a 100% interest in the common stock of S. H. Black & Son, Incorporated as of December 31, 2000 is: $325,000 to $425,000 (rounded) The attached Exhibits and Appendices are integral parts of this valuation analysis. 9 .. .... III' ~I .. J ~I .: ,,] , ,','"-,,,' -',':'''v EXHIBIT A - COMPILED FINANCIAL STATEMENTS .,--..-- -- II III II 1998 1999 i 2000 AVERAGE ASSETS ! Current Assets I I : General Checking $ 3,910 $ (1,192)1 $ 761 869 Payroll Checking 795 765 I 1,539 775 Savings 419 429 : 435 321 Total Cash 5,124 2 2,734 1,965 - IAccounts Receivable 55,073 76,606 66,669 66,116 Total Accounts Receivable I 55,073 76,606 66,669 66,116 - Emp, Pay Advance 349 376 68 264 Inventory - Trucks 1,742 3,454 2,442 2,546 Totai Other Current Assets I 2,091 3,830 2,510 2,810 I - Total Current Assets 62,288 80,438 71,914 53,660 I - Property and Equipment - Office Equipment 26,740 27,539 32,605 28,961 Service EqUipment 81,673 89,197 89,526 86,799 201 Wainut Street 49,395 56,178 56,178 53,917 Vehicies 118,521 120,271 175,670 138,154 Leasehold Improvements 6,525 6,525 6,525 6,525 Accumulated Depreciation (199,411) (222,201 ) (256,923) (226,178) I - Total Property and Equipment 83.443 77,509 I 103,581 88,178 I - TOTAL ASSETS I 145,731 157,947 175,495 159,724 I I LIABILITIES & EQUITY - Liabilities - Current Liabilities - Accounts Payable $ 18,295 $ 38,781 $ 20,139 25,738 Saies Tax Payable 340 781 392 504 Local W/H Tax Payabie - - - - Unemployment Taxes I - - 100 33 1 Line of Credit , 74,026 39,326 47,285 I 53,545 I I Note Payable-M& T Bank I - - I 7,994 2,665 I Pension Payable I - - I 2,696 899 I I I I - Total Current Liabilities , 92,660 78,888 I 78,606 I 62,538 I I ! - Long Terrn Liabilities I - I Notes Payabie - Financial. 1,801 - I - 450 IA. J, Black 12,000 - - I 3,000 1 Sam Black . 20,000 I 41,000 I 24,000 ! 21,250 I Note Payable Stockhold A B 3,188 3,453 I 3,453 I 2,524 Total Long Tenn Liabilities I 36,989 I 44,453 I 27,453 I 27,224 I I - TOTAL LIABILITIES 129,650 123,341 106,059 89,763 I - EQUITY I - Capital Stock 1,000 1,000 1,000 750 Paid-in-Capital - 27,761 27,761 27,761 20,821 Retained Earnings ---- (12,680) 5,845 40,675 8,460 TOTAL EQUITY I 16,081 I 34,606 I 69,436 30,031 I .. I I I - TOTAL LIABILITIES & EQUITY 1$ 145,731 I $ 157,947 I $ 175,495 119,793 ... '~"', , --- . .~ -, .-..._..._~ a, I I I I- I 11 I .. .. .. d . . . . . .: .1 II] T 1998 1999 I 2000 AVERAGE OPERATING STATEMENT I Sales FZ Carpet Sales $ 65,811 $ 96,583 $ 107,939 $ 90,111 FZ Upholstery Sales 8,923 14,610 18,036 13,856 FZ Drapery Sales 1,903 3,156 943 2,001 Mini-Blind Cleaning 189 3,992 610 1,597 Cleaning Restoration Sales 161,056 194,336 107,665 154,352 Structural Restoration Sales 243,374 338,391 481,861 354,542 FZ Retail Sales 82 85 106 91 Custodial Sales 87,546 59,151 57,577 68,091 Painting Sales 34,421 7,382 14,070 18,624 Construction/Repair Sales 319,793 324,620 314,482 319,698 Total Sales 923,100 1,042,504 1,103,289 1,022,964 - Cost of Sales - FZ Supplies 7,404 19,225 17,996 14,675 Restoration Contract Labor 16,269 1,150 - 5,607 Custodial Cleaning Supplies 5,064 4,24" 2,080 3,795 Painting Supplies 7,531 7,008 8,012 7,517 Construction/Repair Supplies 166,494 124,679 102,397 131,190 Structural Restoration Supplies 65,203 148,560 160,252 124,672 Cleaning Restoration Supplies 10,016 17,609 6,507 11,377 Const/Repair Contract Labor 65,873 61,048 81,734 69,552 Bad Dept Expense 5,183 3,572 3,151 3,969 Royalties 800 - - 267 Bonus Expense 2,500 9,943 10,417 7,620 Supervision 24,800 27,789 47,481 33,356 Fabri~Zone 20,806 39,751 38,558 33,038 Restoration Const. Repair... 28,489 60,815 57,522 48,942 Restoration Cleaning Labor 22,694 28,346 37,255 29,432 In-Plant Cleaning Labor 2,274 2,570 2,263 2,369 Custodial 38,457 33,369 29,725 33,850 Construction/Repair 64,240 45,180 44,061 51,160 Painting 16,902 12,695 19,103 16,233 IPost Construction 11,702 2,130 - 4,610 I Drywall Repair 2,679 1,973 - I 1,550 I Shop Time 6,538 6,369 I 9,227 I 7,378 Total Cost of Sales I 591,918 I 658,024 I 677,741 I 642,561 I I I i I - Gross Profit I 331,182 I 384,480 I 425,548 I 380,403 I I I ~.1 III 1 ~._-_."-_. n__ -.- .---- --- '-~--,-.......n.= ....-=-........~&_.. ill . . . . . . . .. . .. . , Operating Expenses 1998 1999 ! 2000 AVERAGE Pension Plan - SIMPLE - - 4,766 1,569 Automobile Expense 19,330 33,645 31,626 26,200 Rent & Utilities 15,969 14,906 14,465 15,120 'Telephone 20,065 26,577 25,456 24,039 Insurance - Automobile 6,935 7,663 6,164 7,567 Insurance - Liability 6,147 4,370 6,166 5,566 Insurance - Health 4,616 10,461 14,665 10,054 Ilnsurance - Workers Compo 13,466 10,196 14,435 12,699 i1nsurance - Other 1,325 1,964 169 1,159 IAdvertising - Fabrizone 2,400 1,020 520 1,313 Advertising - Help Wanted 306 346 177 276 Advertising 3,675 5,453 2,302 3,610 Professional Fees 4,046 5,022 6,147 5,071 Uniforms 3,916 4,421 4,254 4,197 Shareholder Wages 95,000 96,600 105,507 99,769 Other Wages 29,963 46,095 46,546 41,542 Office Supplies 5,601 11,616 9,742 9,053 Travel & Entertainment 1,216 1,233 1,555 1,335 Dues & Membership 412 705 625 561 Contributions 1,640 1,191 1,247 1,359 Interest Expense 12,036 9,472 6,075 9,662 ! Miscellaneous (1,446) 451 I 700 (96) I Bank Fees 769 1,002 1,015 935 IDepreciation and Amortization 29,092 22,790 39,395 30,426 I Payroll Taxes 35,626 36,070 40,611 36,103 ISales, Use, and Other Taxes 276 405 472 365 i Restoration - Total Operating Expenses 312,671 356,112 I 391,027 353,937 I - Operating Income (Loss) 16,510 26,366 34,521 26,467 I - Other Income/Expenses - IInterest & Other Income 10 11 10 10 I Rental Income 5,400 5,410 5,750 5,520 I Gain on Saie of Assets (3,000) . ! 900 (700) I Capital Stock Tax I (500) . (200) (233) Total Other Income 1,910 5,421 i 6,460 ! 4,597 , I I I - Not Income (Loss) $ 20,421 $ 31,769 I $ 40,961 $ 31,064 EXHIBIT B - ADJUSTMENTS TO NET INCOME AND WEIGHTED AVERAGE NET INCOME .. r,..., , ~'<if.~'~;~. . II q II II I I 199B 1999 2000 AVERAGE I I ADJUSTMENTS TO NET INCOME (LOSS) Net Income (Loss) $ 20,421 $ 31,789 $ 40,981 31,064 Adjustments: Shareholder Wages 30,000 33,800 40,507 34,769 Payroll Taxes/Benefits 3,000 3,380 4,051 3,477 Cost of Sales 8.500 8,500 8,500 8.500 Vehicle Expense 8,750 8,750 8,750 8,750 Interest Expense - - 750 250 Depreciation - - 16,000 5,333 Rental Income (5,400) (5,410) (5,750) (5,520) Gainl(Loss) Sale of Assets 3,000 - - 1,000 - Adjusted Earnings 68,271 80,809 113,789 87,623 "Corporate" Income Taxes 12,289 14,546 20,482 15,772 After Tax Adjusted Earnings 55,982 66,263 93,307 71,851 Weighting 1 2 3 Weighted Earnings 55,982 132,527 279,921 76,072 ICapitalization Rate 22% Total Entity Value Before Control Premium $ 354,871 I Additional Control Premium, 29% 102,913 I Entity Value with Additional Control Premium 457,764 I Less: Long-Term Debt 31,964 I \ IValue of Equity, with Additional Control Premium I i$ 425,790 ;:.~.,..~ . ",'..:,,:b'..:,....: ;-.'.;.,':;,:',,", ~ft: 'c','j., ~':~:1p,,'< ExHlli'T C _ wElG1<rED ,,,,,,,,,GE COST OF cAl'fTAL ",~.~'---"~ ~..:.-:::~-~-::::-::...:--, -.--,..-------'.. .~---.__. ---,.----.-.. -- .;<," WEIGHTED AVERAGE COST OF CAPITAL Cost of Equity Capital: Risk-free Rate of Return Long-term Equity Risk Premium Small Stock Risk Premium Unsystematic Risk Premium Total Equity Rate Cost of Debt Capital: Average Cost of Debt Tax Rate After-tax Debt Rate Capital Structure: Equityllnvested Capital Debtllnvested Capital Total Invested Capital WACC (Rounded) 5.58% 8.10% 2.20% 9.12% 25.00% 10.50% 17.80% 8.63% 82% 18% 100.00% 22.00% ,~------- Source The Wall Street Journal ,December 29, 2000 Stocks Bonds Bills & Inflation, Ibbotson Assoc., 2000 Stocks Bonds Bilis & inflation, Ibbotson Assoc., 2000 Management Factors .25 X .82 = 20.5% The Wall Street Journal, December 29, 2000 (Prime plus 1%) 8.63% X 18% = 1.55% .' . . ,. . II . .. . . . q . -- t" APPENDIX A - STATEMENT OF CONTINGENT AND LIMITING CONDITIONS !."- STATEMENT OF CONTINGENT AND LIMITING CONDITIONS This appraWII is made subject to the following general contingent and limiting conditions: 1. We assume no responsibility for the legal description or maUers including legal or title considerations. Title to the subject assets, properties, or business interests is assumed to be good and marketable unless otherwise stated. 2. The subject assets, properties, or business interests are appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. The estimate of value included in this report assumes the existing company will maintain the character and integrity of the company through any sale, reorganization or reduction of any owner/manager's participation in the existing activities of the company. 4. The information furnished by others is believed to be reliable. However, we issue no warranty or other form of assurance regarding its accuracy. 5. This report is neither an offer to sell, nor a solicitation to buy securities andlor equity in or assets of the company. 6. We assume that there is full compliance with all applicable federal, state, and local regulations and laws unless the lack of compliance is stated, defined, and considered in the appraisal report. 7. We assume that all required licenses. certificates of occupancy, consents. or legislative or administrative authority from any local. state. or national government. or private entity or organization have been or can be obtained or reviewed for any use on which the opinion contained in this report is based. 8. Unless otherwise stated in this report, we did not observe, and we have no knowledge of. the existence of hazardous materials with regard to the subject assets. properties, or business interests. However, we are not qualified to detect such substances. We assume no responsibility for such conditions or for any expertise required to discover them. 9. Possession of this report does not carry with it the right of publication. It may not be used for any purpose by any person other than the client to whom it is addressed without our written consent, and. in any event, only with proper written qualifications and only in its entirety. 10. We are not required to furnish a complete valuation report, or to give testimony, or to be in attendance in court with reference to the assets, properties, or business interests in question unless arrangements have been previously made. Neither all nor any part of the contents of this report shall be disseminated to the public through advertising, public relations, news, &ales, or other media without our prior written consent and approval. II. The analyses. opinions, and conclusions presented in this report apply to this engagement only and may not be used out of the context presented herein. This report is valid only for the effective date(s) specified herein and only for the purpose(s) specified herein. 12. We do not purport to be guarantors of value. as reasonable people may differ in their opinion of value. As such, we assume no responsibility for any inability to obtain a purchase price for the stock at this or any value. We may, however, performed conceptually sound and commonly accepted methods and procedures in determining the estimate of value presented in this report. -'-'-'-'''~-----.-.__._~-- "-,, .._."-'---~-'--~-"- .~._..__..._..,. ,. 1.> ""f ,~ II II " .. I It! APPENDIX B - APPRAISAL CERTIFICATION APPRAISAL CERTIFICATION . I We hereby certify the following statements regarding this appraisal: 1. We have no present or prospective future interest in the assets, properties, or business interests that are the subject of this appraisal report. 2. We have no personal interest or bias with respect to the subject matter of this report or the parties involved. 3. Our compensation for making the appraisal is in no way contingent upon the value reported or upon any predetermined value. 4. To the best of our knowledge and belief, the statements of facts contained in this report, upon which the analyses, conclusions, and opinions expressed herein are based, are true and correct. 5. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with National Association of Certified Valuation Analysts standards. 6. No persons other than the individuals whose qualifications are included herein have provided significant professional assistance regarding the analyses, opinions, and conclusions set forth in this report. , . . ~ .~ <It ,~ " ,~ I I I I ..' ~l ,(, -- -,,~,,'......c......;"'r~"?~':'!''1:'''''''l'4'''J!'<'F:'1''''f'"''f:~'l<'...':r::;r~;~:~~~t,.. .F,:; " ~.,' . ~ APPENDIX C -- PROFESSIONAL QUALIFICATIONS OF PRINCIPAL APPRAISER " I ~ . I I I II II . II . II II .. ~ .. tl ~I I I I II Reuel Deppen, CPA, CVA Partner Smoker, Smith & Associates, P.e. 2000 Technology Parkway Suite 150 Mechanicsburg, P A 17050 Telephone (717) 441-9069 Facsimile (717) 441-9068 E-Mail rdeppen@ssa-pc.com Reuel Deppen joined Smoker, Smith & Associates in August 1999. He provides accounting and consulting services to closely held businesses, nonprofit organizations, management teams and executives. He is a certified valuation analyst and is the firm's team leader for business valuation services. He is a member of the American Institute of Certified Public Accountants, the Pennsylvania Institute of Certified Public Accountants, and the National Association of Certified Valuation Analysts. He is also president-elect of the Pennsylvania Institute of Certified Public Accountants and chairperson of his church's finance committee. Prior to joining Smoker, Smith, Reuel was a manager at a local regional public accounting firm and was an associate at PricewaterhouseCoopers. He received his graduate and undergraduate degrees from the Pennsylvania State University, University Park, P A. ~" ". 1\,' " Il ' 1 ;,'" '., , .;" ,., . , RES'fR!CTEI) APPRAISAL REPORT '. 103-105 E. MAD'! ST " sl:IIREMANSTOWl'l. . 412 w. sIMPSON s1., MEcBANlCSBURG . 20rN. wALNU'f ST.,MEotAJ'UCSBuRG pREP ARBD F(JR s&A RENTALS BY . LARRY E. FOOTE . DIVERSIFIED' APpRAISAL SERVICES 35 BAS1 mnil STREE1, SUITE 10l CARLISL'E, l'BNNSYL V ANlA 17013-3052 (717) 249-27SS . ~--- TABLE OF CONTENTS PAGE NO. Table of Contents....................................................................................................2 Letter of Transmittal...............................................................................................3 Purpose of the Appraisal.... ............ .......... ...... ......................................................... 4 Location Analysis..... ... ..... ........ .................... .......... ...................... ............. ... ...... ....5 Highest and Best Use .............................................................................................7 103-105 E. Main Street, Shiremanstown................................................................16 412 W. Simpson Street, Mechanicsburg ................................................................29 201 N. Walnut Street, Mechanicsburg ...................................................................41 Underlying Assumptions and Limiting Conditions ............ ............................... .....54 Certificate of Appraisal............. .... ....... ... ." .... ..... ..' ............ ... ..... '" ........ ..... ....... ....57 APPENDIX Qualifications of the Appraiser Photographs ofthe Subject Properties 2 ~ Jltr .. ~, ' II '" IIi III i ~i III! ,. I Diversified Appraisal Services Real Estate Appraisers and Consultants 35 East High street Canis/e, PA 17013-3052 (117) 249-2758 FAX (117) 258-4701 August 2,2001 TO: S&A Rentals FM: Larry E. Foote RE: Restricted Appraisal Report 103-105 E. Main St., Shiremanstown 412 W. Simpson St., Mechanicsburg 201 N. Walnut St., Mechanicsburg At your request, I have appraised the captioned property. The restricted appraisal report, which follows this letter, is submitted in support of my opinion of Market Value of the Leased Fee Interest in the property, as of May 8, 2001. I hereby certifY that, to the best of my knowledge and belief, the data, facts, and opinions set forth therein, are accurate, subject to the Statement of Assumptions and Lim- iting Conditions that is also made a part of the report, and that the indicated Market Value of the subject property, as of May 8,2001 is: 103-105 E. Main Street, Shiremanstown: 412 W. Simpson Street, Mechanicsburg: 201 N. Walnut Street, Mechanicsburg : $163,000 $160,000 $ 80,000 This restricted appraisal has been made using the Departure Provision in accor- dance with the guidelines set forth by the Appraisal Standards Board and is in conformity with the standards of professional practice of the National Association of Realtors Ap- praisal Section. I appreciate your having considered me for this assignment and trust that you find the report entirely satisfactory. Respectfully submitted, cftz:::~ Certified General Appraiser GA-000014-L 3 JI: , PURPOSE OF THE APPRAISAL The purpose ofthis restricted appraisal is to estimate the Market Value of the sub- ject properties as of May 8, 2001. Market Value is defined as the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a speci- fied date and the passing of title from seller to buyer under conditions whereby: a. Buyer and seller are typically motivated. b. Both parties are well informed or well advised, and each acting in what he considers his own best interest. c. A reasonable time is allowed for exposure in the open market. d. Payment is made in terms of cash in U.S. dollars or in terms of fi- nancial arrangements comparable thereto. e. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 4 LOCATION ANALYSIS The subject property is located in the south central part of Pennsylvania in Cum- berland County. Cumberland County has pronounced boundaries. The Susquehanna River forms the eastern boundary shared with Dauphin County and the state capitol, Har- risburg. The Yellow Breeches Creek forms the southeastern boundary with York County. The boundary then extends to the southwest following the Paney and South Mountains. That line also constitutes the southern boundary with Adams County. The southwestern boundary with Franklin County is traced by Laughlin Run, Middle Spring Creek, Gum Run, and Maines Run while the ridge line of Blue Mountain forms the northern boundary with Perry County. Based upon statistics from the Commonwealth of Pennsylvania Department of Labor and Industry Bureau of Research and Statistics, total civilian labor force in the Harrisburg-Carlisle-Lebanon MSA as of March, 2001 was 350,500, up 8,700 from March, 2000, which was 341,800. The unemployment rate for Cumberland County as of March, 2001 was 3.0 percent, up .7 percent from March, 2000 which was 2.3 percent. These figures of unemployment are lower than 4.5 percent for the commonwealth of Pennsylvania. Over the year service producing industries are up 3,000 jobs and goods producing industries are down 1,200 jobs. Major east-west transportation links serving the general area are U.S. Route 22 and 322, Interstate Route 78, and Interstate Route 76. Major nearby north-south arteries include Interstate Route 81, Interstate Route 83, and U.S. Routes 11 and 15. Rail service. is provided by Amtrak on ConRail's line. The rail terminal is located in downtown Har- 5 ] .1 I I I I I I I risburg. Air transportation includes four airports with Harrisburg International Airport serving the major carriers of U.S. Air, American, and Pennsylvania Commuter Air Lines. General aviation is also served by Capital City Airport and the Carlisle Business Airport. Higher education is offered through the Harrisburg Area Community College, the University Center at Harrisburg, Pennsylvania State University at Harrisburg, Dickinson College and Dickinson Law School. Millersville State University, Shippensburg State University, Susquehanna University, Franklin and Marshall College, and York College, among others, are all within a one hour drive of the general area. Mechanicsburg is located in the southeast section of central Pennsylvania, ap- proximately five miles from Harrisburg, the state capitol. The town itself is presently un- dergoing a considerable degree of renovation and restoration of older properties. Employment opportunities are good, with Commonwealth of Pennsylvania, Her- shey Foods Corporation, Tyco, Herco, Inc., Bethlehem Steel, Harrisburg Hospital, Penn- sylvania Blue Shield, Rite Aid Corporation, Hershey Medical Center, Carlisle Barracks, PPG Industries, Carlisle Tire and Wheel and Lear Corp. being the major employers in the area. There are also manufacturers of crystals, paper products, and steel products in nearby Carlisle. 6 mGHEST AND BEST USE Highest and Best Use is defined by the Appraisal Terminology and Handbook, published by the Appraisal Institute, as "the most profitable likely use to which a prop- erty can be put". The opinion of such use may be based on the highest and most profit- able continuous use to which the property is adapted and needed, or likely to be in de- mand, in the reasonable near future. However, elements affecting value that depend upon events or a combination of occurrences which, while within the realm of possibility, are not fairly shown to be rea- sonably probable, should be excluded from consideration. Also, if the intended use is dependent on an uncertain act of another person, the intention cannot be considered. The following tests must be passed in determining the highest and best use of the subject property. a. The use must be physically possible. The size, shape, and topography of the site affect possible uses for which it can be developed. b. The use must be legal, i.e., permitted under zoning and other municipal, county, state, or federal regulations. c. The use must be financially feasible, probable, and not speculative. There must be an economic, social, or market demand for the existing or proposed use. All uses that are expected to produce a positive return are regarded as fi- nancially feasible. d. Finally, the highest and best use must be that which produced the highest pos- sible net return for the longest period of time. 7 -: ,. ~ I , The highest and best use of a site as vacant may be different from the highest and best use as currently improved. This is most likely to occur with older properties, where physical condition, market changes, and neighborhood changes have been significant since the period when originally constructed. HIGHEST AND BEST USE AS VACANT: The highest and best use of the properties as vacant assumes the site has no exist- ing improvements. This concept is important to the appraisal report as it is carried through to the valuation of the land in the cost approach, if applicable. It assists in the selection of comparable sales of vacant sites to apply to the subject site. Considering the physical characteristics of the site, neighborhood uses, current zoning, location, and fi- nancial parameters, it is my opinion that the highest and best use of the subject property, as vacant, would be for construction of multi-family residential buildings. HIGHEST AND BEST USE AS IMPROVED: The analysis of highest and best use of a property as improved addresses what use should be made of the current improvements. Possible choices include renovation, ex- pansion, demolition, or maintaining its current use with no changes. Considering the physical characteristics of the property, neighborhood uses, current zoning, location, and financial parameters, it is my opinion that the highest and best use of the subject proper- ties, as improved, is for continued use as a multi-family residential buildings. 8 THE APPRAISAL PROCESS Three approaches to value are generally included in an appraisal report. These techniques include the cost approach, sales comparison approach, and income approach to value. The cost approach to value is based on the assumption that the reproduction cost of a building plus land value, tends to set the upper limit to value. A key assumption is that a newly constructed building would have advantages over the existing building, therefore an evaluation focuses upon disadvantages or deficiencies (depreciation) of the existing building compared to a new facility. The sales comparison approach to value assumes that under normal conditions, a given number of parties acting intelligently and voluntarily, tend to set a pattern from which value can be estimated. Application of this approach relies on a comparison of the subject with a sufficient number of recent transactions of comparable properties in the market, based on a common unit, such as price per square foot of building area. The income approach concerns itself with present worth of the future potential benefits of a property. The initial estimate involves the net income, which a fully in- formed person is justified in assuming the property will produce during its remaining use- ful life. This estimated net income is then capitalized into a value estimate, based upon the level of risk as compared with that of a similar type and class. At the request of the client and in accordance with the departure provision of the Uniform Standards of Professional Appraisal Practice, only the income approach to value has been applied to the subject properties and is subsequently presented. 9 THE COST APPROACH The cost approach to value is based on the principle of substitution, which pro- poses that an informed buyer will pay no more than the cost of providing a substitute property with similar utility. In estimating the value ofthe subject property by the cost approach, the following steps must be completed: a. Estimate the value of the site to its highest and best use as though vacant, which we have done. b. Estimate the reproduction or replacement cost of the improvements on the ef- fective date of the appraisal. This includes direct and indirect costs. c. Estimate other costs incurred after construction to being the new, vacant building up to market conditions and occupancy levels. d. Estimate entrepreneurial profit, when appropriate, from an analysis of the market. e. Add estimated replacement or reproduction cost, indirect costs, and entrepre- neurial profit, often expressed as a percentage of total direct and indirect costs to arrive at the total replacement or reproduction cost of the primary structure. f Estimate the amount of accrued depreciation in the structure, which is divided into three major categories; physical deterioration, functional obsolescence, and external obsolescence. 10 I III III g. Deduct the estimated depreciation from the total reproduction or replacement cost of the structure to derive an estimate of the structure's depreciated repro- duction or replacement cost. h. Estimate reproduction or replacement costs and depreciation for any acces- sory buildings and site improvements, and then deduct estimated depreciation from the reproduction or replacement costs of these improvements. Site im- provements and minor building improvements are often appraised at their net value, i.e., directly on a depreciated cost basis. I. Add the depreciated reproduction of replacement costs of the structure, the accessory buildings, and the site improvements to obtain the estimated total depreciated reproduction or replacement cost of all improvements. J. Add the land value to the total depreciated reproduction or replacement cost of all improvements to arrive at the indicated value of the fee simple interest in the property. k. Adjust the indicated fee simple value to reflect the property interest being ap- praised, if necessary, to produce an indicated value for the interest in the sub- ject property. Comparison is the essence of the cost approach to value, similar to the sales com- parison and income approaches. Construction costs, plus land values, are compared to the values of existing improved properties. The four principles used for the sale compari- son approach (substitution, supply and demand, balance, and externalities), are also ap- plicable to the cost approach. ~..!.I.. . . ~".. _ 'l ~,.~ Ii! 11 ,.. ._,~_~__.^_~..._ ~. .,"~_,,"o.. ~~_ So the cost approach to value can be derived and equitably compared with the other approaches to value, adjustments for accrued depreciation from all causes are de- ducted from the reproduction cost, including: a. Physical Deterioration: Physical wearing out of property. b. Functional Obsolescence: Lack of desirability in terms of layout, style and design as compared to that of a new property, serving the same limc- tion. c. External Obsolescence: Loss of value from causes outside the property it- self The cost approach to value is most applicable for new properties, where the com- ponents of physical deterioration and functional and external obsolescence are small. The Marshal Valuation Service is used in this approach with actual costs for the subject property. The Marshall Valuation Service is a complete, dependable appraisal guide for de- veloping replacement costs, depreciated values, and insurable values of buildings and other improvements. Modifiers are applied to make the cost applicable to any size build- ing in any locality. Known costs for locally constructed properties are also analyzed and -. compared with derived cost estimates. At the request of the client, and in accordance with the departure provision of the Uniform Standards of Professional Appraisal Practice, the cost approach to value has not been included in the development of this appraisal report. , I .. 12 THE SALES COMPARISON APPROACH The sales comparison approach is a process of comparing market data, that is, the prices paid for similar properties, prices asked by owners, offers made by prospective purchasers willing to buy, and rents and leases. In applying the sales comparison approach, various appraisal principles are ap- plied, ensuring that all relevant issues have been included in the analysis. The principles of primary importance are supply and demand, balance, substitution, and externalities. Additionally, a fundamental premise of the sales comparison approach is the concept, that from analysis of sales of reasonably similar properties, an appraiser has a factual basis upon which to estimate the value of the subject. Proper application of the sales compari- son approach requires that: a. Only market transactions be weighed, and the date of each transaction be con- firmed to the greatest extent possible. b. The degree of comparability of each sale to the subject be considered. c. The value conclusion be consistent with the analysis of the sales data. A definition of market value is: "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a. Buyer and seller are typically motivated. .. -. 13 b. Both parties are well informed or well advised, and each acting in what he considers his own best interest. c. A reasonable time is allowed for exposure in the open market. d. Payment is made in terms of cash in U.S. dollars or in terms of financial ar- rangements comparable thereto. e. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone asso- ciated with the sale. The degree of comparability that exists between a sale and the subject is often a function of the volume of sales activity in a market. For any class of real estate, if sales are infrequent, the market area must be expanded in scope of time and or geography to whatever extent is necessary to accumulate sufficient data on which to base a judgment. To judge the degree of comparability between a sale and the subject, several guidelines can be applied. a. The sale should be in the same market as the subject. To the extent that a market is a meeting place for buyers and sellers of real estate of a given type, the boundaries of the market are set by the participants in merchandising and absorbing competitive properties. The boundaries of a market area are conse- quently economic in character, and not purely physical or geographic. b. Physical characteristics of the sale and subject should be as similar as possible in terms of size and amenities customarily found within the applicable class of real estate. c. Real estate price trends over time must be taken into consideration. .. 11II 11III .. .. . .. III 14 "" d. The functional adequacy of the sale property and the subject should be com- petitive in terms of the ability of each to support similar functions. At the request of the client, and in accordance with the departure provision of the Uniform Standards of Professional Appraisal Practice, the sales comparison approach has not been included in the development of this appraisal report. -. . ~ . 15 i . . 103-105 BAST Mf\lN STREBT SBlRBMNlSTOWN, PBNNS"iL V AN1^- 16 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS LOCATION: 103-105 East Main Street Shiremanstown, Pennsylvania TAX PARCEL NUMBERS: 37-23-0555-128 OWNERSHIP: Samuel H. Black and S. Andrew Black LAND SIZE: Approximately 28Y.' x 220' ZONING: Neighborhood Commercial District. FLOOD HAZARD DATA: The subject site is not located in a FEMA identified flood hazard zone, according to map #H-Ol. PROPERTY RlGillS: Leased fee interest. , .. II . . . . . I] . . SCOPE OF ASSIGNMENT: The scope of the assignment included an analysis of the subject's area, an inspection of the subject property, an es- timation of the property's highest and best use, considera- tion of all three approaches to value, and the application of those relevant to the valuation of the subject. IMPROVEMENTS: Two-story detached four-unit apartment building. OBJECTIVE: To estimate the market value of the subject property as un- encumbered. USE OF THE APPRAISAL: To assist in estate planning. EFFECTIVE DATE: May 8,2001. HIGHEST AND BEST USE: Continued use as an apartment building. COST APPROACH: NA SALES APPROACH: NA INCOME APPROACH: $163,000 VALUE CONCLUSION: $163,000 17 APPRAISAL CERTIFICATE I hereby certifY that upon application for valuation by: S&A RENTALS the undersigned personally inspected the following described property: All that certain tract of land, with the improvements thereon erected, situate on the north side of Main Street in the Borough of Shiremanstown, Cumberland County, Pennsylvania, more particularly bounded and described as follows: Beginning at a point on the north side of Main Street at the southwest comer of frame dwelling house now or formerly of Mildred A. Sheaffer; thence westwardly 28'12 feet, more or less, to lot formerly of Mildred A. Sheaffer; thence along said lot north- wardly 220 feet, more or less, from the curb line of Main Street to Stroh's, now Straw- berry Alley; thence eastwardly along said alley 25'12 feet, more or less, to line oflot now or formerly of Mildred A. Sheaffer; thence along straight line southwardly to the north end of brick house; thence eastwardly along wall of brick house 4'12 feet, more or less, to northeastern comer thereof; thence southwardly along the east wall of said brick house to Main Street, the place of beginning. To the best of my knowledge and belief the statements contained in this report are true and correct, and that neither the employment to make this restricted appraisal report nor the compensation is contingent upon the value reported, and that in my opinion the Market Value as of May 8, 2001 is: ONE . HUNDRED AND SIXTY-THREE THOUSAND DOLLARS $163,000 18 The property was appraised as a whole, subject to the contingent and limiting conditions outlined herein. ~ Larry E. Foote Certified General Appraiser GA-OOOOI4-L 11 ~ . 19 ZONING The subject property is located in an area which is zoned Neighborhood Commer- . cial District. These districts are established at the center of residential areas to provide for retail sales, personal services and offices. It shall be the purpose of these districts to provide for the routine shopping needs ofthe surrounding residential area. A structure may be erected or used and a lot may be used or occupied for any of the following uses and no other: 1. Single family attached dwelling. 2. Multi-family dwelling. 3. Conversion apartments. 4. Business colleges, trade schools, music and dancing schools and shni- . t lar organizations. 5. Churches 6. Clubs 7. Cultural facilities. 8. Day nurseries. 9. Police and fire stations. 10. Business, professional, public service and financial offices. 11. Business service establishments. 12. Mortuaries 13. Personal service establishments. 14. Retail stores and businesses. 20 II .. .. 11 .. iii II Ii Ii II II rJ II . ~ ~ ~ 15. Sit -down restaurants and taverns. 16. Bus and rail passenger terminals. 17. Communication transmitting and receiving facilities. 18. Community garage or parking lot. 19. Principal supply utilities. 20. Sewage facilities. 21 OWNERSHIP HISTORY The subject property is owned by Samuel H. Black and S. Andrew Black. The property was purchased on January 10, 1994 for a reported consideration of $70,000 and ownership transferred on deed reference 36-T-I20. ESTIMATED MARKETING TIME ~ ~ ~ ~ III .. II II) -- ~ It is estimated that if the subject property were offered for sale at the indicated Market Value, a reasonable marketing time would be six to twelve months. This estimate is based upon quarterly sales figures published by Central Penn Multi List, Inc. ECONOMIC TRENDS Historically, rental income for similar properties has steadily increased, with va- cancy rates remaining stable. Financing is readily available to qualified purchasers at reasonable rates and terms. 22 SITE DESCRIPTION The subject site is rectangular in shape, consists of a total area of approximately 6,270 square feet, and has approximately 28\1:, linear feet of macadam road frontage along East Main Street. There is also approximately 25 linear feet of macadam road frontage along Strawberry Alley. The site is relatively level throughout and there does not appear to be any drain- age problems. According to the Federal Emergency Management Agencymap number H-Ol, the site is not located in an area which is prone to flooding. . In the absence of core boring, it has been assumed that there are no mineral deposits of a commercial nature underlying the subject site. For the same reason, it is "I -'1 i ~! _I -.! \ I .r _I -j ~J I . _iI assumed that there are no unusual sub-soil conditions that would adversely affect the sub- jeet site. Access to the site is via East Main Street and Strawberry Alley, and visibility of the site from these roadways is considered to be good. Utilities available at the site include water, sewer, gas, electricity and telephone service. There appears to be sufficient capacity in each of these utilities to permit opti- mum utilization of the site. 23 IMPROVEMENTS .. . . The subject property is improved with a two-story detached four-unit apartment building containing approximately 2,440 square feet of gross building area, constructed over and partial basement and crawlspace. The exterior walls are of brick and vinyl sid- ing. Roofing is of the gable type, covered with metal sheathing. Gutters and downspouts are of galvanized steel and aluminum. Exterior doors are of wood and metal. Windows are of the wood-framed double-hung type and the thermopane replacement type. Two of the apartments are divided into a living room, kitchen, dining room, two bedrooms and a bathroom. The other two apartments are divided into a living room, eat- in kitchen, bedroom and bathroom. Floor coverings are of carpet, hardwood and vinyl. Interior walls are of plaster and drywall. Interior ceilings are of plaster and suspended acoustical tile blocks. Interior doors are of wood that is either stained and varnished or painted. There is a covered porch attached to the front of the building and two covered rear porches. The building is heated by two gas-fired forced hot air furnaces and an oil-fired hot water furnace. Electricity is distributed by a 1 DO-ampere circuit breaker electrical sys- tem. Water is heated by four 52-gallon gas-fired water heaters and plumbing is of iron, copper and plastic. The site is further improved with a concrete front sidewalk, macadam rear side- walk leading to a stone parking lot and two-car garage, and a rear lawn All improvements are. considered to be in average condition on the interior and on the exterior, with mechanical systems appearing to be adequate and functioning properly. 24 THE INCOME APPROACH The income approach is a method of converting income streams into present worth. Income and expense data for the subject property has been collected from the property owner and adjusted to include a vacancy factor. Analysis of this data resulted in a net operating income of$16,071. Using this approach, the net operating income should be sufficient to cover total mortgage payments and offer a return on equity investment. The net operating income is capitalized to obtain an estimate of value by income approach. Using the band of investment technique to develop a capitalization rate, the ap- praiser contacted lending institutions to determine the availability and terms of invest- ment capital, and the equity return desired by investors in this type investment. It was found that eighty percent of the property value could be borrowed at seven and three- forth percent interest per annum for a term of twenty years, adjusted at the end of five years. Also, investors desire an equity yield of ten percent. The mortgage constant under the above terms would be .098514. Applying the band of investment technique, the overall capitalization rate is developed in the following manner: .80 x .098514 = .078811 .20 x .100000 = .020000 .098811 Based upon the above, capitalizing the net operating income at the overall capi- talization rate of .098811 indicates a value of $16,071/.098811 = $162,643.84. There- 25 I I I I I I I I I I I I I I I I I Ii fore, the Market Value of the subject property by the income approach is best estimated at $163,000. ;'j '! 26 INCOME AND EXPENSE SUMMARY SCHEDULED INCOME: 103 E. Main St. 1st floor@ $525 mo. 103 E. Main St. 2nd floor @ $540 mo. 105 E. Main St. 1st floor@ $365 mo. 105 E. Main St., 2nd floor @ $385 mo. Less vacancy and credit loss Gross Income OPERATING EXPENSES: Sewer Water Gas Property taxes Property insurance Repairs and maintenance Trash removal Total Operating Expenses NET OPERATING INCOME: 27 $6,300 6,480 4,380 4,620 653 240 697 1,798 1,581 213 400 projected -ID $21,127 5.056 $16,071 -- III . .. II Q III .. III II .. .. II Q -- .,. .- . ... .' _. .-.",-. RECONCILIATION AND FINAL VALUE ESTIMATE Reconciliation is the analysis of alternative conclusions to arrive at a final value estimate. Reconciliation is required because different value indications result from the use of multiple approaches to value and within the application of a single approach. The final value estimate is not derived simply by applying technical and quantita- tive procedures; rather, it involves the exercise of judgment. The value conclusion reached must be consistent with market thinking. The parts of this appraisal report are the following approaches to value your ap- praiser used: Value Indicated by Cost Approach Value Indicated by Sales Comparison Approach Value Indicated by Income Approach N.A. N.A. $163,000 These approaches are representative of the market value of the property. I have carefully examined each step in each method, and I believe the conclusions accurately reflect the attitude of typical purchasers of this type property in this neighborhood. It is my belief that this reexamination has confirmed the original conclusions. As a result of this restricted appraisal and analysis, it is this appraiser's considered judgment and opinion that the Market Value of the subject property, as of May 8,2001 is: ONE HUNDRED AND SIXTY-THREE THOUSAND DOLLARS $163,000 28 ~ II, ~. . -- . .. , . l -- . ..- .. p .- " 412 WES1' SIMPSON S1'REB'f Mf,CW'J'UCSBURO, PBNNSY1..v p.,NlA 29 --=--oiii ., .,. -- . ! III .- - . III III .. III IiIII . III II .. .. II ~- SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS LOCATION: 412 West Simpson Street Mechanicsburg, Pennsylvania TAX PARCEL NUMBERS: 20-23-0567-044 OWNERSHIP: Samuel H. Black and S. Andrew Black LAND SIZE: Approximately 51' x 150' ZONING: Residential Medium Density District. FLOOD HAZARD DATA: The subject site is not located in a FEMA identified flood hazard zone, according to map #420362-0005-C. PROPERTY RIGHTS: Leased fee interest. SCOPE OF ASSIGNMENT: The scope of the assignment included an analysis of the subject's area, an inspection of the subject property, an es- timation of the property's highest and best use, considera- tion of all three approaches to value, and the application of those relevant to the valuation of the subject. IMPROVEMENTS: Two-story, two-unit apartment building with a detached one-umt apartment and garage building. OBJECTIVE: To estimate the market value of the subject property as un- encumbered. USE OF THE APPRAISAL: To assist in estate planning. EFFECTIVE DATE: May 8, 2001. HIGHEST AND BEST USE: Continued use as COST APPROACH: N.A. SALES APPROACH: N.A. INCOME APPROACH: $160,000 VALUE CONCLUSION: $160,000 30 ~. . APPRAISAL CERTIFICATE I hereby certifY that upon application for valuation by: S&A RENTALS the undersigned personally inspected the following described property: All that certain tract of land, with the improvements thereon erected, situate on the North side of West Simpson Street in the Borough of Mechanicsburg, Cumberland County, Pennsylvania, more particularly bounded and described as follows: Bounded on the South by West Simpson Street; on the West by lot now or for- merly ofJoseph Senseman; on the North by a public alley; and on the East by lot now or formerly of Lloyd Wrightstone; containing 51.00 feet, more or less, in front of said Simp- son Street and extending at an even width in depth from said Simpson Street to said alley. To the best of my knowledge and belief the statements contained in this report are true and correct, and that neither the employment to make this restricted appraisal report nor the compensation is contingent upon the value reported, and that in my opinion the Market Value as of May 8,2001 is: ONE HUNDRED AND SIXTY THOUSAND DOLLARS $160,000 The property was appraised as a whole, subject to the contingent and limiting conditions outlined herein. ~ Larry E. Foote Certified General Appraiser GA-OOOOI4-L 31 -- , -- -. i -- -- ~ .- . ld . . . .. 111 ZONING The subject property is located in an area which is zoned Residential Medium Density District. This district is comprised of those areas where single-family dwellings are predominant. The purpose of this district is to stabilize those areas of the Borough where such a pattern of residential design has been established and protect it from com- mercial and multi-family development intrusion. The following uses are permitted in any Residential Medium Density District: 1. Single-family detached dwellings. 2. Single-family semi-detached dwellings. 3. Two-family detached dwellings. 4. Accessory apartment dwelling. 5. Churches or similar places of worship, parish houses, convents. 6. Cemeteries and monument sales. 7. Municipal uses, public libraries, and firehouses. 8. Hospitals, medical centers, and doctor's offices. 9. Family day care homes. 10. Public parks, playgrounds and municipal recreation areas. 11. Public and private schools. 12. Public utility uses. 13. Home occupations. 14. Manufactured/mobile home parks. 32 -~-~.-._....".<.._..~-- ..' ---.-..,-......""'.__-"~.........._._.......:.;.......&......,~_O;~. ....."'-'_ .., .............. III 15. Signs, when erected and maintained in accordance with Article 15 of the zoning ordinance. 16. Uses and buildings customarily accessory and incidental to any permitted uses. II ~ III II III II 33 ,_._~- _...._--_."-,~---'"' ~.,_,,_:h..,':d:;;::<,;;, OWNERSHIP mSTORY The subject property is owned by Samuel H. and S. Andrew Black. The property was purchased on July 14, 1999 for a reported consideration of $152,000 and ownership transferred on Deed Book 203, Page 939. ESTIMATED MARKETING TIME II II II II q .. , JJ , I It is estimated that if the subject property were offered for sale at the indicated Market Value, a reasonable marketing time would be six to twelve months. This estimate is based upon quarterly sales figures published by Central Penn Multi List, Inc. ECONOMIC TRENDS Historically, rental income for similar properties has steadily increased, with va- cancy rates remaining stable. Financing is readily available to qualified purchasers at reasonable rates and terms. 34 SITE DESCRIPTION The subject site is rectangular in shape, consists of a total area of approximately 7,650 square feet, and has approximately 51 linear feet of macadam road frontage along West Simpson Street. There is also approximately 51 linear feet of macadam road frontage along a public alley. The site is relatively level throughout and there does not appear to be any drain- age problems. According to the Federal Emergency Management Agency map number I,- [ r-'I-!:..:. . '. , ~ . r 420362-0005-C, the site is not located in an area which is prone to flooding. In the absence of core boring, it has been assumed that there are no mineral de- posits of a commercial nature underlying the subject site. For the same reason, it is as- sumed that there are nounusual sub-soil conditions that would adversely affect the sub- ject site. Access to the site is via West Simpson Street and a public alley, and visibility of the site from these roadways is considered to be good. Utilities available at the site include water, sewer, gas, electricity and telephone service. There appears to be sufficient capacity in each of these utilities to permit opti- mum utilization of the site. . . . . 35 IMPROVEMENTS The subject property is improved with a two-story detached three-unit apartment building containing a total of approximately 1,836 square feet of gross building area and a two-story detached two-car garage and apartment building containing a total of ap- proximately 1,008 square feet of gross building area. The exterior walls are of vinyl siding and roofing is of the gable type, covered with shingles. Gutters and downspouts are of painted aluminum. Windows are of the wood-framed double-hung type and exterior doors are of wood. Interior floor coverings are of carpet and vinyl. Interior walls and ceilings are of plaster and drywall. The dwell- ing is heated by two gas-fired hot water furnaces and the apartment in the garage building is heated by baseboard electric heating units. Electricity is distributed by two 100- ampere circuit breaker systems and one 200-ampere circuit breaker system. Water is heated by two 52-gallon gas-fired water heaters and one 52-gallon electric water heater. Plumbing is of iron, copper and plastic. The two apartments in the house are each divided into a double living room, din- ing room, kitchen, two bedrooms and a full bathroom. The apartment in the garage build- ing is divided into a living room, kitchen, two bedrooms and a bathroom. The garage consist of two bays. The site is further improved with a four-space macadam parking area, side and rear lawns with shrubs, and a concrete sidewalk with curbing along the front of the site. All improvements are considered to be in average condition on the interior and on the exterior, with mechanical systems appearing to be adequate and functioning properly. 36 THE INCOME APPROACH The income approach is a method of converting income streams into present worth. Income and expense data for the subject property has been collected from the property owner and adjusted to include a vacancy factor. Analysis of this data resulted in a net operating income of$15,830. Using this approach, the net operating income should be sufficient to cover total mortgage payments and offer a return on equity investment. The net operating income is capitalized to obtain an estimate of value by income approach. Using the band of investment technique to develop a capitalization rate, the ap- praiser contacted lending institutions to detennine the availability and terms of invest- ment capital, and the equity return desired by investors in this type investment. It was found that eighty percent of the property value could be borrowed at seven and three- II) . .. III .. I) II) II forths percent interest per annum for a term of twenty years, adjusted at the end of five years. Also, investors desire an equity yield of ten percent. The mortgage constant under the above terms would be .098514. Applying the band of investment technique, the overall capitalization rate is developed in the following manner: .80 x .098514 = .078811 .20 x .100000 = .020000 .098811 Based upon the above, capitalizing the net operating income at the overall capi- talization rate of .098811 indicates a value of $15,830/.098811 = $160,204.84. There- 37 -- II" . .. II II 11 II .. 11 t . t . a I I I I I fore, the Market Value of the subject property by the income approach is best estimated at $160,000. 38 ~ w- i...... III I.- r'I ., INCOME AND EXPENSE SUMMARY SCHEDULED INCOME: 412 W. Simpson St. 1st floor@ $565 mo. 412 W. Simpson St. 2nd floor @ $440 mo. 412 W. Simpson St. rear@$650mo. Less vacancy and credit loss Gross Income OPERATING EXPENSES: Sewer Water Property taxes Property insurance Repairs and maintenance Trash removal Total Operating Expenses NET OPERATING INCOME: WI .. . 39 $6,780 5,280 7,800 596 154 789 1,288 126 615 462 $19,264 3.434 $15,830 RECONCILIATION AND FINAL VALUE ESTIMATE Reconciliation is the analysis of alternative conclusions to arrive at a final value estimate. Reconciliation is required because different value indications result from the use of multiple approaches to value and within the application of a single approach. The final value estimate is not derived simply by applying technical and quantita- tive procedures; rather, it involves the exercise of judgment. The value conclusion reached must be consistent with market thinking. The parts of this appraisal report are the following approaches to value your ap- praiser used: ~ III III .. II III II q II II Value Indicated by Cost Approach Value Indicated by Sales Comparison Approach Value Indicated by Income Approach N.A. N.A. $160,000 These approaches are representative of the market value of the property. I have carefully examined each step in each method, and I believe the conclusions accurately reflect the attitude of typical purchasers of this type property in this neighborhood. It is my belief that this reexamination has confirmed the original conclusions. As a result of this restricted appraisal and analysis, it is this appraiser's considered judgment and opinion that the Market Value of the subject property, as of May 8,2001 is: ONE HUNDRED AND SIXTY THOUSAND DOLLARS $160,000 40 --- , ~ 201 NORTIl W ALNDT S'fREE'f "MECBAN!CSBURG, PENNSYL V ANl^ 41 III 11,. .: .1 .1 , I , .1 ,.: .i .' II . , . I . . . . , . . ~" .... SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS LOCATION: 201 North Walnut Street Mechanicsburg, Pennsylvania TAX PARCEL NUMBERS: 18-23-0565-173 OWNERSHIP: Samuel H. Black and S. Andrew Black LAND SIZE: Approximately 55.42' x 140.48' ZONING: Residential Medium Density District. FLOOD HAZARD DATA: The subject site is not located in a FEMA identified flood hazard zone, according to map #420362-0005-C. PROPERTY RIGHTS: Leased fee interest. SCOPE OF ASSIGNMENT: The scope of the assignment included an analysis of the subject's area, an inspection of the subject property, an es- timation of the property's highest and best use, considera- tion of all three approaches to value, and the application of those relevant to the valuation of the subject. IMPROVEMENTS: Two-story detached two-unit apartment building. OBJECTIVE: To estimate the market value of the subject property as un- encumbered. USE OF THE APPRAISAL: To assist in estate planning. EFFECTIVE DATE: May 8,2001. IDGHEST AND BEST USE: Continued use as an apartment building. COST APPROACH: N.A. SALES APPROACH: N.A. INCOME APPROACH: $80,000 VALUE CONCLUSION: $80,000 42 -- -.-: , -. .. , J .,. ~ .. -. -- III ... III . ... . . . . ..' ~ APPRAISAL CERTIFICATE I hereby certifY that upon application for valuation by: S&A RENTALS the undersigned personally inspected the following described property: All that certain tract of land, with the improvements thereon erected, situate in the Borough of Mechanicsburg, Cumberland County, Pennsylvania, more particularly bounded and described as follows: Beginning at a point at the northwest comer of the intersection of North Walnut Street (a 43 foot right-of-way) and East Green Street (a 40 foot right-of-way); thence by the northern right-of-way line of East Green Street South 72 degrees 31 minutes 41 sec- onds West a distance of 140.48 feet to a point at Tanner Alley (a 20 foot right-of-way); thence by Tanner Alley North 25 degrees 20 minutes 25 seconds West a distance of 55.42 feet to a point at Lot No.2; thence by Lot NO.2 North 72 degrees 31 minutes 41 seconds East a distance of 140.48 feet to a point at the western right-of-way line of North Walnut Street; thence by western right-of-way line of North Walnut Street South 25 degrees 20 minutes 25 seconds East a distance of 55.42 feet to a point at the northern right-of-way line of East Green Street, the point and place of beginning. Containing 7,785.40 square feet. To the best of my knowledge and belief the statements contained in this report are true and correct, and that neither the employment to make this restricted appraisal report nor the compensation is contingent upon the value reported, and that in my opinion the 43 p, , I -- . l1li III .. III III 111 -. .. ... .... .- .. III , -. , --- Market Value as of May 8,2001 is: EIGlITY THOUSAND DOLLARS $80,000 The property was appraised as a whole, subject to the contingent and limiting conditions outlined herein. x~ Larry E. Foote Certified General Appraiser GA-000014-L NOTE: This appraised value is based upon the dwelling being in "as is" condition. 44 ZONING The subject property is located in an area which is zoned Residential Medium Density District. This district is comprised of those areas where single-family dwellings are predominant. The purpose of this district is to stabilize those areas of the Borough where such a pattern of residential design has been established and protect it from com- mercial and multi-family development intrusion. The following uses are permitted in any Residential Medium Density District: 17. Single-family detached dwellings. 18. Single-family semi-detached dwellings. 19. Two-family detached dwellings. 20. Accessory apartment dwelling. .. . . . . . ~ . 21. Churches or similar places of worship, parish houses, convents. 22. Cemeteries and monument sales. 23. Municipal uses, public libraries, and firehouses. 24. Hospitals, medical centers, and doctor's offices. 25. Family day care homes. 26. Public parks, playgrounds and municipal recreation areas. 27. Public and private schools. 28. Public utility uses. 29. Home occupations. 30. Manufactured/mobile home parks. 45 p 31. Signs, when erected and maintained in accordance with Article 15 of the zoning ordinance. 32. Uses and buildings customarily accessory and incidental to any permitted uses. III d iii .. 46 I ~ '-'...<-'. _..-~,,,,,,,.,,!,,,-,.~, .~ I- -- ~ III -- . II . t- OWNERSHIP HISTORY The subject property is owned by Samuel H Black and S. Andrew Black. The property was purchased on September 12, 1997 for a reported consideration of $49,000 and ownership transferred on Deed Book 164, Page 423. ESTIMATED MARKETING TIME It is estimated that if the subject property were offered for sale at the indicated Market Value, a reasonable marketing time would be six to twelve months. This estimate is based upon quarterly sales figures published by Central Penn Multi List, Inc. ECONOMIC TRENDS Historically, rental income for similar properties has steadily increased, with va- cancy rates remaining stable. Financing is readily available to qualified purchasers at reasonable rates and terms. 47 .' SITE DESCRIPTION .. . . .. . . II .' II . . . . . The subject site is rectangular in shape, consists of a total area of approximately 7,785 square feet, and has approximately 55.42 linear feet of macadam road frontage along North Walnut Street. There is also approximately 140.48 linear feet of macadam road frontage along East Green Street. The site is relatively level throughout and there does not appear to be any drain- age problems. According to the Federal Emergency Management Agency map number 420362-0005-C, the site is not located in an area which is prone to flooding. In the absence of core boring, it has been assumed that there are no mineral de- posits of a commercial nature underlying the subject site. For the same reason, it is as- sumed that there are no unusual sub-soil conditions that would adversely affect the sub- ject site. Access to the site is via North WaInut Street and East Green Street, and visibility of the site from these roadways is considered to be good. Utilities available at the site include water, sewer, gas, electricity and telephone service. There appears to be sufficient capacity in each of these utilities to permit opti- mum utilization of the site. 48 I '1 III' . ~ I IMPROVEMENTS II II III II . .. .. q II . II . . The subject property is improved with a two-story detached two-unit apartment building containing approximately 1,616 square feet of gross building area above grade, constructed over a basement with a stone foundation. The exterior walls of the building are covered with vinyl siding. Roofing is of the gable type, covered with fiberglass shin- gles. Gutters and downspouts are of painted aluminum. Exterior doors are of insulated steel and windows are of the vinyl-clad thermopane type. There is a wraparound porch attached to the front and side of the dwelling. The first floor consists of an apartment that is divided into a living room, eat-in kitchen, two bedrooms and a bathroom. The second floor apartment is divided into a liv- ing room with dining area, kitchen, two bedrooms and a bathroom. Interior floor cover- ings are of carpet and vinyl. Interior walls and ceilings are of drywall and interior doors and trim are of painted wood. The building is heated by two gas-fired forced hot air fur- naces. Electricity is distributed by two IOO-ampere circuit breaker electrical systems. Water is heated by two 52-gallon electric water heaters and plumbing is of copper and plastic. The site is further improved with a lawn with shrubs, concrete sidewalks with curbing along the streets, and a stone parking area located at the rear of the building. All improvements are considered to be in good condition on the interior and on the exterior, with mechanical systems appearing to be adequate and functioning properly. 49 tf_.. -. THE INCOME APPROACH The income approach is a method of converting income streams into present . worth. Income and expense projections for the subject property have been collected from the property owner and adjusted to include a vacancy factor. Analysis of this data re- suited in a projected annual net operating income of $1 0, 173. Using this approach, the net operating income should be sufficient to cover total mortgage payments and offer a return on equity investment. The net operating income is capitalized to obtain an estimate of value by income approach. Using the band of investment technique to develop a capitalization rate, the ap- praiser contacted lending institutions to detennine the availability and terms of invest- ment capital, and the equity return desired by investors in this type investment. It was found that eighty percent of the property value could be borrowed at seven and three- forths percent interest per annum for a term of twenty years, adjusted at the end of five years. Also, investors desire an equity yield of ten percent. Since the future tax assess- ment will be based upon the renovated building, a tax rate had to be built into the capi- talization rate. The total tax rate for Mechanicsburg is .013632. The mortgage constant under the above terms would be .098514. Applying the band of investment technique, the overall capitalization rate is developed in the following manner: ... .. . .. .80 x .098514 = .078811 .20 x .100000 = .020000 Total tax rate .013632 .112443 50 Iii' ..; Based upon the above, capita1izing the net operating income at the overall capi- talization rate of .112443 indicates a.value of $10173/.112443 ~ $90,472.51. Therefore, the Market Value of the subject property by the income approach is best estimated at $90,000, less $10,000 estimated cost to complete remodeling, for a final estimated value of $80,000 in "as is" condition. ~ II II IQ II .. III II III II .. IJ .. III 51 I~ .. . . .. III -- -- .. lID III .. .... . .,.. INCOME AND EXPENSE SUMMARY SCHEDULED INCOME: Projected rental income for 1" f1oor@ $475 mo. Projected rental income for 2nd floor @ $450 mo. Less vacancy and credit loss Gross Income OPERATING EXPENSES: Property insurance Projected repairs and maintenance Trash removal Total Operating Expenses NET OPERATING INCOME: 52 III $5,700 5,400 333 125 200 269 $10,767 594 $10,173 t~- . _._.,..._~.--._-~-----'~--'---~._- ---. RECONCILIATION AND FINAL VALUE ESTIMATE Reconciliation is the analysis of alternative conclusions to arrive at a final value estimate. Reconciliation is required because different value indications result from the use of multiple approaches to value and within the application of a single approach. The final value estimate is not derived simply by applying technical and quantita- tive procedures; rather, it involves the exercise of judgment. The value conclusion reached must be consistent with market thinking. The parts of this appraisal report are the following approaches to value your ap- praiser used: , .Ii ~I "I "I -.: .1 Value Indicated by Cost Approach Value Indicated by Sales Comparison Approach Value Indicated by Income Approach N.A. N.A. $80,000 These approaches are representative of the market value of the property. I have carefully examined each step in each method, and I believe the conclusions accurately reflect the attitude of typical purchasers of this type property in this neighborhood. It is my belief that this reexamination has confirmed the original conclusions. As a result of this restricted appraisal and analysis, it is this appraiser's considered judgment and opinion that the Market Value ofthe subject property, as of May 8,2001 is: EIGHTY THOUSAND DOLLARS I I I . I .r- I ~ $80,000 53 'l UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS SUBJECT TO THIS APPRAISAL . .. d II iii . .. III III II -- 21. I assume no responsibility for matters legal in nature, nor do I render any opinion as to the title, which is assumed to be marketable. The property is appraised as though under responsible ownership. 22. The legal description used herein is correct. 23. I have made no survey of the subject property, and the boundaries are taken from records believed to be reliable. 24. I assume that there are no hidden or unapparent conditions of the property, subsoil or structures which would render it more or less valuable. I assume no responsi- bility for such conditions or for engineering which might be required to discover such factors. 25. The information, estimates, and opinions furnished to me and contained in this re- port were obtained from sources considered to be reliable and believed to be true and correct. However, no responsibility for accuracy can be assumed by me. 26. This appraisal report is to be used in its entirety and only for the purpose for which it was rendered. 27. Neither all nor any part of the contents of this appraisal report, (especially any conclusions as to value, the identity of the appraiser or the firm with which he is connected) shall be reproduced, published, or disseminated to the public through advertising media, public relations media, sales media, or any other public means III lflii 54 __T-"------^ ... ',. . .. ... of communication, without the prior written consent and approval of the ap- praiser. 28. Unless otherwise stated in this report, the existence of hazardous material, includ- ing without limitation asbestos, polycWorinated biphenyls, petroleum leakage, or agricultural chemicals, which mayor may not be present on the property, was not III . .. MIl -- .,. .,. observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea- formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engi- neering knowledge required to discover them. The client is urged to retain an ex- pert in this field, if desired. 29. I do not have knowledge or experience required to evaluate whether physical changes have to be made to existing facilities to conform to the Americans With Disabilities Act regulations or whether alterations or new construction meets the requirements. Therefore, the value reported is based upon the assumption that the subject property conforms to the ADA regulations. The client is urged to retain an expert in this field, if desired. 30. Acceptance of and/or use of this appraisal report constitutes acceptance of the foregoing assumptions and limiting conditions. 55 I -- iii- CERTIFICATE OF APPRAISAL Your appraiser hereby certifies that: 1. I have no present or contemplated future interest in the subject property. 2. I have no personal interest or bias with respect to the subject matter of this ap- praisal report or the parties involved. My findings are not based on the employ- ment to make the restricted appraisal, a requested minimum valuation, a specific ..... III!' ,.: 10 ! ......, ~ valuation, or the approval of a loan. 3. To the best of my knowledge and belief, the statements of fact contained in this appraisal report, upon which the analyses, opinions, and conclusions expressed herein are based, are true and correct. 4. This restricted appraisal report sets forth all of the limiting conditions (imposed by the terms of my assignment or by the undersigned) affecting the analyses, opinions, and conclusions contained in this report. 5. This restricted appraisal report has been made in conformity with the Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation, and is subject to the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the Appraisal Section of the National Association of Realtors. -- .. 11 .. .. 6. No one other than the undersigned prepared the analyses, conclusions, and opin- ions concerning real estate that are set forth in this restricted appraisal report. 7. This restricted appraisal report has been completed in a manner that does not mis- lead or confuse the client or the intended users of the report. 57 If II' . II ~ .. ., II iii II ~. it Ii ~ II t . t t I ,..-.----.-- - 8. The appraiser has advised the client that the assignment calls for something less than, or different from the work required by the specific guidelines. 9. The client has agreed that the performance of a restricted appraisal would be ap- propriate. .......'.. ....w... r;:.~~~:~" ,::.- .r"" i~U>::', r. ' ".-,," ~ '--J r.-;jr.\\l. ': '~J tt',?\ \ ~ ~ '\ ~ l'} ~ , f'n: . "'..- ~ ~:, ..(,-i", J ,. . ,+-;<i~;-", ~,:)~~}C' ~ />f,' '. .i7i~ .. .' .";. '" ~,l'/) ",?'? 'l ..' ~ "". t~.i;:.':."_:~' 58 ~~ Larry E. Foote Certified General Appraiser GA-OOOO14-L ... I , .' .- - .. i ....' ~. -- .. , -- .- II -- III /.,' ! .. ~. ~ .- . I r LARRY E. FOOTE REAL ESTATE APPRAISER EXPERIENCE: 1979-Present: Chief Appraiser, Diversified Appraisal Services, Carlisle, Pa. Principal Broker, LaRue Development Company, Carlisle, Pa, 1976-1979: Associate Broker, Colonial Realty, Carlisle, Pa, 1972-1976: Realtor Associate, Jack Gaughen Realtor, Carlisle, Pa, Appraisa1 experience included undeveloped land, furms, building lots, single-fumily dwellings, mobile home parks, medical centers, nursing homes, motels, apartment buildings and complexes, office bnildings, service stations, veterinary clinics, rehabilitation centers, retail buildings, day- care centers, warehouses, and manufacturing facilities, EDUCATION: Bachelor of Business Administration, Pennsylvania State University, 1976. Associate Bachelor of Business Administration, Harrisburg Area Community College, 1974. Diploma, Carlisle Senior High School, 1965. Certificate, Pennsylvania Realtors Institute, GRl I, GRl IT, GRl III. Certificate, Realtors National Marketing Institute, CI 101, CI IOZ, Cl103, CI 104, CI 105. Standards of Professional Practice, American Institute of Real Estate Appraisers, Real Estate Appraisal Principles, American Institute of Real Estate Appraisers, Residential Valuation, American Institute of Real Estate Appraisers, Appraisal Procedures, Appraisal Institute, Principles of Income Property Appraising, Appraisal Institute, Case Studies in Real Estate Valuation, Appraisal Institute, Report Writing and Valuation Analysis, Appraisal Institute, PROFESSIONAL LICENSES: General Appraiser #GA-OOOO 14-L, Commonwealth of Pennsylvania, Real Estate Broker #RB-QZ9729-A, Commonwealth of Pennsylvania, PROFESSIONAL DESIGNATIONS: GRl: Graduate of the Pennsylvania Realtors Institute, awarded by the Pennsyl- vania Association of Realtors, CRS: Certified Residential Specialist, awarded by the Realtors National Market- ing Institute of the National Association of Realtors. CCIM: Certified Commercial Investment Member, awarded by the Realtors National Marketing Institute of the National Association of Realtors, PROFESSIONAL ORGANIZA nON AFFILIATIONS: National Association of Realtors Appraisal Section, Carlisle Association ofRea1tors, Pennsylvania Association of Realtors, National Association of Realtors. Realtors National Marketing Institute, 59 PAST CLIENTS: Borough of Carlisle Keystone Financial Mortgage Cornerstone Federal Credit Union Pennsylvania State Bank Commerce Bank Cumberland-Perry Association for Retarded Citizens Carlisle Suburban Authority Members 1" Federal Credit Union Pennsylvania National Bank Evans Financial Corporation Greenawalt & Company, CPA Smith's Transfer Corporation Carlisle Department of Parks and Recreation. Executive Relocation Services Carlisle Area School District Messiah Homes, Incorporated ERA Eastern Regional Services Pennsylvania Turnpike Commission Chase Home Mortgage Corporation Defense Activities Federal Credit Union Pennsylvania State Employees Credit Union PNC Mortgage Corporation F&M Trust Company National City Mortgage Corporation Washington Mutual Home Loans, fue. Prudential Relocation Services Lender's Choice Market futelligence, fucorporated United Telephone Employees Federal Credit Union Cumberland County Commissioners Allstate Enterprises Mortgage Corporation Dickinson College PPG Industries, fucorporated Gettysburg College Redevelopment Authority of Cumberland County Record Data Appraisal Services, Incorporated First United Federal Savings Association Fulton Bank United States Marshall Service GMAC Mortgage Corporation Orrstown Bank Letterkenny Federal Credit Union BanePlus Mortgage Corporation Coldwell Banker Relocation Services, Incorporated Central Pennsylvania Savings Bank Mellon Bank Provident Home Mortgage Corporation Various law firms and individuals ~ ~ 60 ~:. . -- ., ,.: .' i .. ' .... 1II1J: -. -- -.' ";'1 1111 1111 , .. ... ... ... -- 11M ; III I .. PHOTOGRAPHS OF 103-105 EAST MAIN STREET, SHlREMANSTOWN 61 L ~', I, \ ~, _. .- .- ,. .- .- III -\ -\ .\ .- , , ~\ ,., 1t ~ " "" /~ .no""'....... o' 201 ~. W -",,{1"""'-" ,..cn""cSB"ltG 63 REV-1510 EX + (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Samuel Andrew Black SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY FILE NUMBER 21-2001-0484 This schedule must be completed and filed if the answer to any of questions 1 through 4 on the reverse side of the REV-1500 COVER SHEET is yes. DESCRIPTION OF PROPERTY %OF EXCLUSION ITEM INCLUDE NAME OF THE TRANSFEREE, THEIR DATE OF DEATH DECO'S (IF TAXABLE VALUE RELATIONSHIP TO DECO & DATE OF TRANSFER. NO. ATTACH COPY OF THE DEED FOR REAL ESTATE. VALUE OF ASSET INTEREST APPLICABLE) 1 Oppenheimer Funds, IRA account 5,440.76 #270-2704607405 2 Janus, IRA account #0033259714 1,226.59 TOTAL (Also enter on line 7, Recapitulation) $ 6,667.35 7 CPAOl NTF 10910 (If more space is needed, insert additional sheets of the same size) Copyright Forms Software Only, 1997 Nelco, Inc. REV-1511EX + (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Samuel Andrew Black SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS FILE NUMBER 21-2001-0484 Debts of decedent must be reoorted on Schedule I. ITEM NO. A. FUNERAL EXPENSES: DESCRIPTION AMOUNT 1 Hollinger Funeral Home & Crerratory, Inc., funeral services 3,788.32 B. ADMINISTRATIVE COSTS: 1. Personal Representative's Commissions Name of Personal Representative(s) Social Security Number(s)/EIN No. of Personal Representative(s) Street Address City State 0.00 Zip Year(s) Commission Paid: 2. 3. Attorney Fees Name: Snelbaker, Brermerran & Spare Family Exemption: ([f decedent's address is not the same as claimant's, attach explanation) Claimant Street Address 3,200.00 0.00 City Relationship of Claimant to Decedent State Zip 4. Probate Fees 267.00 5. Accountant's Fees 0.00 6. Tax Return Preparer's Fees 0.00 See Schedule attached Total from continuation page(s) 1,745.10 7 CPA11 NTF 10g1 1 Copyright Forms Software Only, 1997 Nelco, Inc. TOTAL (Also enter on line 9, Recapitulation) $ (If more space is needed, insert additional sheets of the same size) 9,000.42 REV-1509 EX + (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Samuel Andrew Black SCHEDULE F JOINTLY-OWNED PROPERTY FILE NUMBER 21-2001-0484 If an asset was made Joint within one year of the decedent's date of death, It must be reported on Schedule G. SURVIVING JOINT TENANT(S) NAME A Samuel H. Black ADDRESS S&H Black and Sen, Partnership 12 East Portland Street Mechanicsburg, PA 17055 RELATIONSHIP TO DECEDENT Partner JOINTLY-OWNED PROPERTY: LETTER DATE DESCRIPTION OF PROPERTY %OF DATE OF DEATH FOR Include name of financial institution and bank ITEM JOINT MADE account number or similar identifying number. DATE OF DEATH DECO'S VALUE OF NO. TENANT JOINT Attach deed for jointly-held real estate, VALUE OF ASSET INTEREST DECEDENT'S INTEREST 1 A inceptio Decedent's partnership 160,493.58 50 80,246.79 interest in the following parcels of real estate 1. 103-105 East Main Street, Bcrough of Shiremanstown, Cumberland County, PA $163,000.00 appraised value $120,816.29 less mortgage lien $ 42,183.71 net value 2. 412 West Si~son Street, Bcrough of Mechanicsburg, Cumber land County, PA $160,000.00 appraised value $121,690.15 less mortgage lien $ 38,309.85 net value 3. 201 North Walnut Street, Bcrough of Mechanicsburg, Cumberland County, PA $80,000.00 appraised value Decedent was the owner of a TOTAL (Also enter on line 6, Recapitulation) $ 80,246.79 7 CPA91 NTF 10909 (If more space is needed, insert additional sheets of the same size) '::opyright Forms Software Only. 1997 NelciJ.lnc. Estate of: Samuel Andrew Black Item Joint No. Tent. 1 A Date Made Joint SCHEDULE F -- Jointly-ONned Property Description 50% interest in an informal (unwritten) partnership with his father, Samuel H. Black. Value based on one-half of appraised value less outstanding mortgage obligations. A copy of the appraisal is attached. Date of Death Value of Asset % of Decd's Interest TOTAL. (Carry forward to main schedule) . . . . . . Page 2 21-2001-0484 Date of Death Value of Decd's Int. 0.00 Estate of: SaJlTI.1el Andrew Black SaJEDULE H, PART B -- Administrative Costs Item No. Description 7 Diversified Appraisal Services, appraisal fee for following properties: 1. 117 East Marble Street, Mechanicsburg, PA 2. Lot in Spring willow Drive, Mechanicsburg 3 . Lot in Miller Township, Perry County, PA 8 Diversified Appraisal Services, appraisal fee for following properties: 1. 103-105 East Main Street, Shirerranstown, PA 2. 412 West Sirrpson Street, Mechanicsburg, PA 3. 201 North Walnut Street, Mechanicsburg, PA 4. 106 North Walnut Street, Mechanicsburg, PA Total Invoice amount $1,800.00 divided by 1/2 (decedent's share) = $900.00 9 Patriot-News, advertising Executrix notice 10 Cumberland Law Journal, advertising Executrix notice 11 Register of Wills, Cumberland County, filing fee for Inheritance Tax Return TOTAL. (Carry forward to main schedule) . . . . . . Page 2 21-2001-0484 Arrount 650.00 900.00 110.10 75.00 10.00 1,745.10 REV-1513 EX + (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF SCHEDULE J BENEFICIARIES FILE NUMBER Samuel Andrew Black No. NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY I. TAXABLE DISTRIBUTIONS (include outright spousal distributions) RELATIONSHIP TO DECEDENT Do Not List Trustee(s) 1 Klema A. Black 117 East Marble Street Mechanicsburg, PA 17055 Surviving spouse 21-2001-0484 AMOUNT OR SHARE OF ESTATE 344,583.48 ENTER DOLLAR AMTS. FOR DISTRIBS. SHOWN ABOVE ON LINES 15 THROUGH 17 AS APPROPRIATE. ON REV 1500 COVER SHEET II. NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE None B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS None TOTAL OF PART 11-- ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV 1500 COVER SHEET $ 7 CPA13 NTF 10913 (If more space is needed, insert additional sheets of the same size) ':':;opyrrght Forms Software Only, 1997 Nelco, Inc. 0.00 , ~."- T - -'t -. .. '", - . - ( ','- r, "'-. l-~"";"'; I, . r t j"", 'I'"~ I . , .', '~;r j " , ' ).. " t 1.1], ,'" ~NJA. I'" ,~-, ~ " .: \1" {, r . '~" ;f""~ , I' '., " , " ; , Ui' 11" - .; ,,~, 11" f :r: l,'" : 1: I,t '-i'" ~,.~ ~,-ml'ml~ , ' ~ , 1 r;. ' ',! ';, " i1>l. , ,~ t " . ,I: . ,'~:1' ~ \ I t, j. q: "'... il~f.7~ ","}(7Ill~ ~~-~~~~~ ,~~,:~-t;' r~~ , _~~JI~.. J}. 6/- 'IJ"Y LAST WILL AND TESTAMENT I, SAMUEL A. BLACK, of the Borough of Mechanicsburg, County of Cumberland and State of Pennsylvania, being of sOLnd mind, memory and understanding, do make, publish and declare this to be my Last Will and Testament, hereby revoking and m&king void all former wills, codicils and other testamentary di.positions by me at any time heretofore made. 1. 1 direct my executrix, hereinafter named, to pay as soon as practicable after my decease all my just debts and expenses of my last illness and burial. 2. I give, devise and bequeath all the rest; residue and remainder of my estate, whatsoever and wheresoever situate, unto my wife, Kierna A. Black, providing she shall survive me by (60) sixty days. 3. Should my said wife, Kierna A. Blacl" predecease me or die on or before the sixtieth day follow~ng my death, then and in that event, I give, devise and bequeath my entire estate unto my Trustee, hereinafter named, IN TRUST for the following uses and purposes: A ,FlUE COPY FROi'A F:ECORD III f.El!/llfllctlny vil1!Jrot.1 hemur.'o set my hand and tt~@ ~eut 01 said Coul1 a1 CEiriis!e. PA . This .3/ ,a/' day o:~uvr 2Cit1:2.. 1'\ ^' .1,. LtrrA? fJ. !/;;//J00 ()pj 1?tl.~::['~{J/ WF"J - CI&rk of the- Qrp:lans Court Cumbel'land County l. A. To use and ~pply so much of the income as, in Trustee's discretion, may be necessary or appropriate for my son's, Aaron J. Black, support and education until he attains the age of eighteen (18) years. Any income not so used or applied shall be accumulated and added to and thereafter treated as a part of principal. B. To pay the net income therefrom to my son, Aaron J. Black, from and after the day and date he attains the age of eighteen (18) years until the termination of this trust as hereinafter provided. C. As much of the principal of this trust as my trustee may from time to time think advisable for the support and education [including post high school education) of my son, Aaron J. Black, after taking into consideration his other readily available assets and sources of income, or during illness or emergency, shall be either paid to him or else be applied directly for his benefit by my trustee. D. My trustee may apply the net income of this trust for the support and education of my son, L ----- ---- -----~-_._._-~----- Aaron J. Black, should he by reason of age, illness, or any other cause, in the opinion of my trustee, be incapable of disbursing it. E. To pay over the balance of the principal and any accumulated income to my son, Aaron J. Black, when he attains the age of twenty-five (25) years at which time the Trust shall terminate. 4. My personal representative, trustee, and guardian shall have the following powers in addition to those vested in them by law and by other provisions of my Will, applicable to all property, including property held for minors, whether principal or income, exercisable without court approval, and effective until actual distribution of all property. (A) To retain any or all of the assets of my estate, real or personal, without regard to any principle of diversification, risk or productivity. (B) To invest in all forms of property, including stocks, common trust funds and mortgage investment funds, without restriction to investments authorized for Pennsylvania fiduciaries, as they deem proper, wlthout i~ regard to any principle of diversification, risk or productivity. C. To sell at public or private sale, to exchange or to lease, for any period of time, any real or personal property and to give options for sales, exchanges or leases, for such prices and upon such terms or conditions as they deem proper. D. To allocate receipts and expenses to principal or income or partly to each as my Trustee from time to time thinks proper in its sole discretion. E. To deliver the assets of my estate and the trust herein created either in cash or in kind, or partly in cash and partly in kind. S . I appoint The First Bank and Trust Company of Mechanicsburg, Pennsylvania, guardian of any property which passes, either under this Will or otherwise, to a minor and with respect to which I am authorized to appoint a guardian and have not otherwise speci- fically done so. Such guardian shall have the power to use principal as well as income from time to time for the minor's education (including post high school education), support and welfare, or to make payment for these purposes, without further L_ ------~------ -------- ----- responsibility, to the minor or to any person taking care of the minor. 6. I appoint The First Bank and Trust Company of Mechanicsburg, Pennsylvania, trustee of the trust created by thi. ci~ Last Will 7. I hereby nominate, constitute and appoint my wife, Kierna A. Black, executrix of this my Last Will and Testament. Should my said wife fail to qualify or cease to act as executrix, then and in that event, I nominate, constitute and appoint my sister, Constance E. Roland, executrix of this my Last Will. 8. Should my said wife, Kierna A. Black, predecease me, I appoint my sister-in-law and her husband, Margaret Annan Hollinger and Eric L. Hollinger, and the survivor of them, guardians of the person of my minor son. 9 . I direct that my personal representatives, trusteec and guardian shall not be required to give bond for the faithful perfornance of their duties in any jurisdiction. IN WITNESS WHEREOF, I, Samuel A. Black, the Testator have hereunto set my hand and seal to this my Last Will and Testament on this :;L d-"'ct day of 1991. F~ I"....'^a....~ ~~a~~Pr (SEAL) _._._---._._----.__.__.._-.._~---_.._---------.--_--- Signed, sealed, published and declared by the within named Samuel A. Black as and for his Last Will and Testament in the presence of us, who, at his request, in his presence and in the presence of each other, have hereunto subscribed our names as witnesses thereto. .k'\ CUI ____ (} ~.r ~7' ~ cu.e, /Y\ o ESTATE NO. 21-01-0484 SECOND/REVISED AND FINAL ACCOUNT AND STATEMENT OF PROPOSED DISTRIBUTION OF AND BY KIERNA A. BLACK, EXECUTRIX OF THE ESTATE AND UNDER THE LAST WILL AND TESTAMENT OF SAMUEL A. BLACK, DECEASED, LATE OF THE BOROUGH OF MECHANICSBURG, CUMBERLAND COUNTY, PENNSYLVANIA Kierna A. Black, Executrix as aforesaid and Accountant herein, avers as follows: DATE OF DECEDENT'S DEATH: DATE LETTERS TESTAMENTARY ISSUED: May 8, 2001 May 17, 2001 DATES EXECUTOR'S NOTICE ADVERTISED: Cumberland Law Journal Patriot-News Co. June 1, 8, 15, 2001 May 29, June 5, 12, 2001 FIRST AND FINAL ACCOUNT PERSONALTY - PRINCIPAL ACCOUNT DEBITS The Accountant charges herself with the receipt of the Decedent's personalty, goods and chattels as set forth in her inventory heretofore filed in the amount of: TOTAL, PERSONALTY, PRINCIPAL ACCOUNT, DEBITS: PERSONALTY - PRINCIPAL ACCOUNT CREDITS The Accountant claims credit for the payment of the following items from Decedent's Personalty Account: 1. Hollinger Funeral Home & Crematory, Inc., funeral services 2. Snelbaker & Brenneman, P.C., attorney services 3. Snelbaker & Brenneman, P.C., costs advanced: a. Register of Wills probate fees b. Cumberland Law Journal, advertising Executrix notice c. Patriot-News, advertising Executrix notice d. Register of Wills, certified Will for federal return e. Register of Wills, filing fee for Inheritance Tax Return f. Register of Wills, additional probate fee g. Greenawalt & Company, P.C., tax consultation fee TOTAL. PERSONALTY, PRINCIPAL ACCOUNT, CREDITS: LAW OFFICES SNELBAKER & BRENNEMAN. P.C. ; , " Page 1 $ 249,669.76 $ 249,669.76 $ 3,788.32 3,200.00 569.10 267.00 75.00 110.10 2.00 10.00 35.00 70.00 $ 7,55742 ~ t "" _ .. <J PERSONALTY - INCOME ACCOUNT DEBITS The Accountant charges herself with the receipt of the following Income from the investment of Personalty Principal: TOTAL, PERSONALTY, INCOME ACCOUNT, DEBITS: $ NONE $ NONE PERSONALTY - INCOME ACCOUNT CREDITS The Accountant claims credit for the payment of the following items from the Personalty Principal Account: TOTAL, PERSONALTY, INCOME ACCOUNT, CREDITS: $ NONE $ NONE REAL ESTATE - PRINCIPAL ACCOUNT DEBITS The Accountant charges herself with the receipt of Decedent's Real Estate as set forth in her Inventory heretofore filed in the amount of: TOTAL, REAL ESTATE, PRINCIPAL ACCOUNT, DEBITS: $ 97,246.79 $ 97,24679 REAL ESTATE - PRINCIPAL ACCOUNT CREDITS The Accountant claims credit for the payment of the following items from Real Estate Principal Account: 1. Diversified Appraisal Services, appraisal fee TOTAL, REAL ESTATE, PRINCIPAL ACCOUNT, CREDITS: $ 1,550.00 $ 1,550.00 REAL ESTATE -INCOME ACCOUNT DEBITS The Accountant charges herself with the receipt of the income from the investment of Real Estate Principal Account: TOTAL, REAL ESTATE, INCOME ACCOUNT, DEBITS: $ NONE $ NONE REAL ESTATE -INCOME ACCOUNT CREDITS The Accountant claims credit for the payment of the following items From the Real Estate Income Account: TOTAL, REAL ESTATE, INCOME ACCOUNT, CREDITS: $ NONE $ NONE LAW OFFICES SNEL6AKER & BRENNEMAN, P.C. Page 2 LAW OFFICES SNELBAKER & BRENNEMAN, P.C. PERSONALTY: PRINCIPAL ACCOUNT: Debits Credits Balance INCOME ACCOUNT: Debits Credits Balance TOTAL PERSONALTY REAL ESTATE: PRINCIPAL ACCOUNT: Debits Credits Balance INCOME ACCOUNT: Debits Credits Balance TOTAL REAL ESTATE: TOTAL FOR DISTRIBUTION: RECAPITULATION Page 3 $249,669.76 $ 7,557.42 $ 242,112.34 $ NONE $ NONE $ NONE $ 97,246.79 $ 1,550.00 $ 95,696.79 $ NONE $ NONE $ NONE $ 242,112.34 $ 95,696.79 $ 337,809.13 LAW OFFICES SNELBAKER & BRENNEMAN. P,C. COMMONWEALTH OF PENNSYLVANIA) COUNTY OF CUMBERLAND) Kierna A. Black, being duly sworn according to law deposes and 55. says: that she is the Executrix of the Estate and under the Last Will and Testament of Samuel A. Black, Deceased; that she is the Accountant herein; that the foregoing is a true and complete accounting of her administration of said Estate; that the attached list or schedule [*] contains the names, addresses and amounts due unpaid creditors who have given proper notice of their claims; that the attached list or schedule [**] contains the names and addresses of all persons interested in the distribution of said Estate; and that information and belief. the facts set forth herein are true and correct to the best of her knowledge, Sworn to and subscribed before me this 2nd day of February 2006 ~~K~~ COMMONWEALTH '.. L?ENNSYL VANIA Notarial Seal Sandra K. ShO'.vers, Notary Public Mechanicsburg Bora, Cumberland County My Commission Expires Nov. 22, 2007 Member. Pennsylvania !"$sociation Of Notaries Page 4 lV~a.~ Kierna A. Black, Executrix LAW OFFICES SNELBAKER & BRENNEMAN, P.C. * UNPAID CREDITORS: NONE ** PERSONS INTERESTED IN DISTRIBUTION OF ESTATE: 1. Kierna A. Black 1776 Springwillow Drive Mechanicsburg, PA 17055 Page 5 LAW OFFICES SNELBAKER & BRENNEMAN, P.C. STATEMENT OF PROPOSED DISTRIBUTION Kierna A. Black, Executrix and Accountant herein, proposes to distribute the balance of the Estate of Samuel A. Black, Deceased, to wit: $337,809.13 in accordance with the Last Will and Testament of said Decedent as follows: 1. TO: Kierna A. Black 100% of residue as per Item 2 of Will including the following real estate in-kind: A. 1.1 acre tract of land at James Drive, Miller Township, Perry County, PA B. Undivided one-half partnership interest in premises known as 103 and 105 East Main Street in the Borough of Shiremanstown, Cumberland County, PA C. Undivided one-half partnership interest in premises known as 201 North Walnut Street in the Borough of Mechanicsburg, Cumberland County, PA D. Undivided one-half partnership interest in premises known as 412 West Simpson Street in the Borough of Mechanicsburg, Cumberland County. PA TOTAL DISTRIBUTION: Page 6 $ 337,809.13 $ 337,809.13 LAW OFFICES SNELBAKER & BRENNEMAN, P.C. COMMONWEALTH OF PENNSYLVANIA) COUNTY OF CUMBERLAND: SS. Kierna A. Black, being duly sworn according to law, deposes and says that the facts set forth in the foregoing Statement of Proposed Distribution are true and correct to the best of her knowledge, information and belief. Sworn to and subscribed before me this 2nd day of February 2006 ~cn~ K ~~ COMMONWE/":i:.EL,i:~L..E1::.l.!~\jSYL VANIA Notari31 Seal Sandra K. Showers. Notary Public Mechanicsburg Bore, Cumberland County My Commission E'~pjres Nov. 22, 2007 ---,....;....,--._.._. Member. Pennsyiv""..., ,c" :,"".,.:"('0" Of Notaries Page 7 ;(~ (jIS~~J Kierna A. Black, Executrix ESTATE NO. 21-01-0484 SECOND/REVISED AND FINAL ACCOUNT AND STATEMENT OF PROPOSED DISTRIBUTION OF AND BY KIERNA A. BLACK, EXECUTRIX OF THE ESTATE AND UNDER THE LAST WILL AND TESTAMENT OF SAMUEL A. BLACK, DECEASED, LATE OF THE BOROUGH OF MECHANICSBURG, CUMBERLAND COUNTY, PENNSYLVANIA Kierna A. Black, Executrix as aforesaid and Accountant herein, avers as follows: DATE OF DECEDENT'S DEATH: DATE LETTERS TESTAMENTARY ISSUED: May 8, 2001 May 17, 2001 DATES EXECUTOR'S NOTICE ADVERTISED: Cumberland Law Journal Patriot-News Co. June 1, 8, 15, 2001 May 29, June 5, 12,2001 FIRST AND FINAL ACCOUNT PERSONALTY - PRINCIPAL ACCOUNT DEBITS The Accountant charges herself with the receipt of the Decedent's personalty, goods and chattels as set forth in her inventory heretofore filed in the amount of: TOTAL, PERSONALTY, PRINCIPAL ACCOUNT, DEBITS: PERSONALTY - PRINCIPAL ACCOUNT CREDITS The Accountant claims credit for the payment of the following items from Decedent's Personalty Account: 1. Hollinger Funeral Home & Crematory, Inc., funeral services 2. Snelbaker & Brenneman, P.C., attorney services 3. Snelbaker & Brenneman, P.C., costs advanced: a. Register of Wills probate fees b. Cumberland Law Journal, advertising Executrix notice c. Patriot-News, advertising Executrix notice d. Register of Wills, certified Will for federal return e. Register of Wills, filing fee for Inheritance Tax Return f. Register of Wills, additional probate fee g. Greenawalt & Company, P.C., tax consultation fee TOTAL, PERSONALTY, PRINCIPAL ACCOUNT, CREDITS: LAW OFFICES SNELBAKER & BRENNEMAN, P.C. I! '" j ..1 '" ~ \J Page 1 $ 249,669.76 $ 249,669.76 $ 3,788.32 3,200.00 569.10 267.00 75.00 110.10 2.00 10.00 35.00 70.00 $ 7,557.42 v PERSONALTY - INCOME ACCOUNT DEBITS The Accountant charges herself with the receipt of the following Income from the investment of Personalty Principal: $ NONE TOTAL, PERSONALTY, INCOME ACCOUNT, DEBITS: $ NONE PERSONALTY - INCOME ACCOUNT CREDITS The Accountant claims credit for the payment of the following items from the Personalty Principal Account: $ NONE TOTAL, PERSONALTY, INCOME ACCOUNT, CREDITS: $ NONE REAL ESTATE - PRINCIPAL ACCOUNT DEBITS The Accountant charges herself with the receipt of Decedent's Real Estate as set forth in her Inventory heretofore filed in the amount of: $ 97,246.79 TOTAL, REAL ESTATE, PRINCIPAL ACCOUNT, DEBITS: $ 97,246.79 REAL ESTATE - PRINCIPAL ACCOUNT CREDITS The Accountant claims credit for the payment of the following items from Real Estate Principal Account: 1. Diversified Appraisal Services, appraisal fee $ 1,550.00 TOTAL, REAL ESTATE, PRINCIPAL ACCOUNT, CREDITS: $ 1,550.00 REAL ESTATE -INCOME ACCOUNT DEBITS The Accountant charges herself with the receipt of the income from the investment of Real Estate Principal Account: $ NONE TOTAL, REAL ESTATE, INCOME ACCOUNT, DEBITS: $ NONE REAL ESTATE -INCOME ACCOUNT CREDITS The Accountant claims credit for the payment of the following items From the Real Estate Income Account: $ NONE TOTAL, REAL ESTATE, INCOME ACCOUNT, CREDITS: $ NONE LAW OFFICES SNELBAKER & BRENNEMAN, P.c. Page 2 LAW OFFICES SNELBAKER & ~RENNEMAN, P.C. PERSONAL TY: PRINCIPAL ACCOUNT: Debits Credits Balance INCOME ACCOUNT: Debits Credits Balance TOTAL PERSONALTY REAL ESTATE: PRINCIPAL ACCOUNT: Debits Credits Balance INCOME ACCOUNT: Debits Credits Balance TOTAL REAL ESTATE: TOTAL FOR DISTRIBUTION: RECAPITULATION $249,669.76 $ 7,557.42 $ NONE $ NONE $ 97,246.79 $ 1,550.00 $ NONE $ NONE Page 3 $ 242,112.34 $ NONE $ 95,696.79 $ NONE $ 242,112.34 $ 95,696.79 $ 337,809.13 COMMONWEALTH OF PENNSYLVANIA) 55. COUNTY OF CUMBERLAND) Kierna A. Black, being duly sworn according to law deposes and says: that she is the Executrix of the Estate and under the Last Will and Testament of Samuel A. Black, Deceased; that she is the Accountant herein; that the foregoing is a true and complete accounting of her administration of said Estate; that the attached list or schedule [*] contains the names, addresses and amounts due unpaid creditors who have given proper notice of their claims; that the attached list or schedule [**] contains the names and addresses of all persons interested in the distribution of said Estate; and that the facts set forth herein are true and correct to the best of her knowledge, information and belief. %Uu-U a. &uU Kierna A. Black, Executrix Sworn to and subscribed before me this ~ day of February 2006 ~~J<~W~ COMMONWEALTH 0f.~:'Et'.tNSYLVANIA Notarial Seal Sandra K. ShOV\'€rs, Notary Public Mechanicsburg Borc. Cumberland County My Commission Expires Nov. 22, 2007 Member, Pennsylvania JI.ssoclatiol1 Of Notaries LAW OFFICES SNELBAKER & BRENNEMAN. P.C. Page 4 LAW OFFICES SNELBAKER & ~RENNEMAN, P.C. * UNPAID CREDITORS: NONE ** PERSONS INTERESTED IN DISTRIBUTION OF ESTATE: 1. Kierna A. Black 1776 Springwillow Drive Mechanicsburg, PA 17055 Page 5 LAW OFFICES SNELBAKER & BRENNEMAN. P.C. STATEMENT OF PROPOSED DISTRIBUTION Kierna A. Black, Executrix and Accountant herein, proposes to distribute the balance of the Estate of Samuel A. Black, Deceased, to wit: $337,809.13 in accordance with the Last Will and Testament of said Decedent as follows: 1. TO: Kierna A. Black 100% of residue as per Item 2 of Will including the following real estate in-kind: A. 1.1 acre tract of land at James Drive, Miller Township, Perry County, PA B. Undivided one-half partnership interest in premises known as 103 and 105 East Main Street in the Borough of Shiremanstown, Cumberland County, PA C. Undivided one-half partnership interest in premises known as 201 North Walnut Street in the Borough of Mechanicsburg, Cumberland County, PA D. Undivided one-half partnership interest in premises known as 412 West Simpson Street in the Borough of Mechanicsburg, Cumberland County. PA TOTAL DISTRIBUTION: Page 6 $ 337,809.13 $ 337,809.13 LAW OFFICES SNELBAKER & BRENNEMAN. P.c. COMMONWEALTH OF PENNSYLVANIA) COUNTY OF CUMBERLAND: SS. Kierna A. Black, being duly sworn according to law, deposes and says that the facts set forth in the foregoing Statement of Proposed Distribution are true and correct to the best of her knowledge, information and belief. Sworn to and subscribed before me this 2nd day of February 2006 ~m~ K ~~ COMMONWEALf.UJ.ZL FLNi\jSYLVANIA Notarial Seal Sandra K. Showers, Notary Public Mechanicsburg Bore;, Cumberland County My Commission Expires Nov. 22, 2007 Member. F'ennsy:v<1::;'; Of Notaries Page 7 }(~ 61 f3~\ Kierna A. Black, Executrix Amended/Supplementallnventory of the real and personal estate of SAMUEL A. BLACK, Deceased PERSONALTY: 1 IBM, 32 shares of common stock valued at $116.63 per share 2 Affinity Online, Inc., 37,879 shares of common stock valued at $.33 per share 3 S.H. Black & Son, Inc., 51% ownership 4 J.P. Turner & Company, L.L.C., investment account #13308973 TOTAL PERSONALTY: REAL ESTATE: Property consisting of 1.1 acre tract of land located at James Drive, Miller Township, Perry County, Pennsylvania 2 Decedent's one-half partnership interest with Samuel H. Black in the following parcels of real estate: a. 103-105 East Main Street, Borough of Shiremanstown, Cumberland County, PA, appraised value $163,000.00 less mortgage lien in the amount of $120,816.29 resulting in net value of $42,183.71 Decedent's 1/2 interest equals $21,091.86 b. 412 West Simpson Street, Borough of Mechanicsburg, Cumberland County, PA, appraised value $160,000.00 less mortgage lien in the amount of $121 ,690.15 resulting in net value of $38,309.85 Decedent's 1/2 interest equals $19,154.93 c. 201 North Walnut Street, Borough of Mechanicsburg, Cumberland County, PA, appraised value $80,000.00 Decedent's 1/2 interest equals $40,000.00 TOTAL REAL ESTATE: TOTAL PERSONALTY AND REAL ESTATE: C,) C"-.! ~. ./ , . $ 3,732.16 12,500.07 230,265.00 3,172.53 $ 249,669.76 17,000.00 21,091.86 19,154.93 40,000.00 $ I 97,246.79 $ 346,916.55 COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND l J ss: Kierna A. Black according to law, deposes and says that !he ~s the Executrix of the Estate of Samuel A. Black late of _ Bo_~ou~_~~ Me~~_~E.~~~burg_ , Cumberland County, Pa., deceased and that the within is an inventory made by Kierna A. Black "' the said Executrix of the entire estate of said decedent, consisting of all the personal prop~rty and real estate, except real estate outside the Commonwealth of Pennsylvania, and that the figures opposite each item of the Inventory represent it's fair value as of the date of decedent's death. being duly sworn and subscribed before me, ;f~ /J;&n Sworn February 2, ~C~rh0-k ~rk;> . COMMONWEALTH OF PENNSYLVANIA Notarial Seal Sandra K. Showers, Notary Public Mechanicsburg Boro, Cumberland County My Commission Expires Novo 22, 2007 Member, Pennsylvania Association Of Notaries 8th May ~ 2006 Executor - Administrator Kierna A. Black, Executrix 1776 Springwi110w Drive Mechanicsburg, PA 17055 Address 2001 Date of Dedth Day Month Year INSTRUCTIONS I. An inventory must be filed within three months after appointment of personal representative. 2. A supplement inventory must be filed within thirty days of discovery of additional assets. 3. Additional sheets may be attached as to personalty or realty 4. See Article IV, Fiduciaries Act of 1949. ~ ;::l .0 UJ U U ~ 0'" u C -c p.., -.::t >- C1l C1l 41 00 I- W ,..., ..c: lit -.::t ~ ~ I- ~ U III C 0 w -< aJ Q) C1l I a... I- ::E: u Gl ~ ,..., 0 In ~ Q) 0 C C\ 0 W ~ W 4-l III C I ~ I a... ,..., 0 a... C ....... I- -l LL aJ III Q) N Z LL -l "'" 0 ~ ..c: a... ~ W 0 "'" w .;.. ~ ~ C1l ;::l > Z CJ:l 0 0+- <<:l Z 0 ~ c: C ::::J In Z 4-l 0 0 ~ ci ~ 0 ~ 0 Q) Z w "'" - ~ a... Q) -c C1l +J c: .0 C1l III ,..., +J ..... -;: Q) 0 UJ Q) c. ~ .L) -0 ~ CJ:l Q) E Gl 0 ~i/ 0+- III ::::J 0 -l - 0 u: CD ',""'P ~; \) ~< 01-1 ~~ ;:a~ i=l-ItI) lZi~! 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BUREAU OF INDIVIDUAL iAi~s INHERITANCE TAX DIVISION PO BOX 280601 HARRIS8URG PA 17128-0601 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE * OO,,~!-\' \"Ii-' , " RICHARD C SN~AKER SNElBAKER ETAL 44 W MAIN ST MECHANICSBURG '0' ~r' \ NOTICE OF DETERMINATION AND ASSESSMENT OF PENNSYLVANIA ESTATE TAX BASED ON FEDERAL : 0 9 CLOSING LETTER \ DATE ESTATE OF DA TE OF DEATH FILE NUMBER COUNTY ACN KY.71& EX AFP (0'.05) 7.uul 'J \ 8 PV; ~ PA 17055 05-14-2007 BLACK 05-08-2001 21 01-0484 CUMBERLAND 202 APPEAL DATE: 07-13-2007 (See reverse side under Objections) A.ount Re.1tted I MAKE CHECK PAYABLE AND SAMUel A ] REMIT PAYMENT TO: NOTE: To insure proper credit to Your account, submit the upper portion of this form with your tax payment. REGISTER OF WILLS CUMBERLAND CO COURT HOUSE CARLISLE, PA 17013 CUT ALONG THIS LINE -+ RETAIN LOWER PORTION FOR YOUR FILES +- RE;;:736--ii-~FP--(oi:-025-----.;--NOificE--OF-jjiTEjf"iN~fioii-ANjj-As1rissiiiNT----------------------_______ OF PENNSYLVANIA ESTATE TAX BASED ON FEDERAL CLOSING LETTER .. ESTATE OF BLACK SAMUel A FILE NO.21 01-0484 ACN 202 DATE 05-14-2007 ESTATE TAX DETERMINATION 1. Credit For State Death Taxes as Verified 2. PennSYlvania Inheritance Tax Assessed (Excluding Discount and/or Interest) .00 .00 3. Inheritance Tax Assessed by Other States or Territories of the United States (Excluding Discount and/or Interest) .00 4. Total Inheritance Tax Assessed 5. PennSYlvania Estate Tax Due .00 6. Amount of PennSYlvania Estate Tax Previously Assessed Based on Federal Estate Tax Return .00 7. Additional PennSYlvania Estate Tax Due .00 TAX CREDITS: .00 PAYMENT RECEIPT DISCOUNT (+) AMOUNT PAID DATE NUMBER INTEREST/PEN PAID (-) TOTAL TAX CREDIT .00 BALANCE OF TAX DUE .00 INTEREST AND PEN. .00 TOTAL DUE .00 *IF PAID AFTER THIS DATE, SEE REVERSE SIDE eIF TOTAL DUE IS LESS THAN .1, NO PAYMENT IS REQUIRED G\ FOR CALCULATION OF ADDITIONAL INTEREST. IF TOTAL DUE IS REFLECTED AS A "CREDIT" eCR), YOU MAY BE DUE A REFUND. SEE REVERSE SIDE OF THIS FORM FOR INSTRUCTIONS.)