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HomeMy WebLinkAbout01-04-06 (2) REV-1500 EX + (8-00) * w .... If.:<1I) Uii!lf.: wll.g :z:fi!...J UlI.lll II. < COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE DEPT. 280601 HARRISBURG, PA 17128-0601 REV.1500 INHERITANCE TAX RETURN RESIDENT DECEDENT OFFICIAL USE ONLY FILE NUMBER II 05 0071 NUMBER COUNTY CODE YEAR SOCIAL SECURITY NUMBER DECEDENT'S NAME (LAST, FIRST, AND MIDDLE INITIAL) Manges, ClairE. DATE OF DEATH (MM-DD-YEAR) DATE OF BIRTH (MM-DD-YEAR) I- Z W o W (.) w a 10-29-2004 207 -24-2033 THIS RETURN MUST BE FILED IN DUPLICATE WITH THE 01-17-1932 REGISTER OF WILLS SOCIAL SECURITY NUMBER 207 -32-4987 (IF APPLICABLE) SURVIVING SPOUSE'S NAME ( LAST, FIRST AND MIDDLE INITIAL) Manges, Georgie Ann [!] 1. Original Return o 4. Limited Estate ~ 6. Decedent Died Testate (Attach copy of Win) D 9. Litigation Proceeds Received 'llI~\i~~TtQNJ.t,lS:lC'i'"' "8:m' NAME Brett B. Weinstein, Esquire FIRM NAME (If applicable) Weinstein Law Offices PC !Z w Q Z o II. II) ~ II:: o U TELEPHONE NUMBER 610-337-3733 D ~ ~ D 2. Supplemental Return D 3. Remainder Retum (date of death prior to 12-13-82) o 5. Federal Estate Tax Return Required 1 8. Total Number of Safe Deposit Boxes [i] 11. Election to tax under Sec. 9113(A) (AlIach Sch 0) 1. Real Estate (Schedule A) 2. Stocks and Bonds (Schedule B) 4a. Future Interest Compromise (date of death after 12-12-62) 7. Decedent Maintained a Living Trust (Attach copy of Trust) 10 Spousal Povertv Credit (dete of death between . 12-31-91 and H-ll5) PlI" COMPLETE MAILING ADDRESS 705 West DeKalb Pike King of Prussia, PA 19406 t-,.') (1 ) (2) (3) (4) (5) (6) (7) -c. qFFICIAL USE:O~LY , . 1'" None None None None 8,160.54 None -; 3. Closely Held Corporation, Partnership or Sole-Proprietorship 4. Mortgages & Notes Receivable (Schedule D) 5, Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) 6. Jointly Owned Property (Schedule F) o Separate Billing Requested 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G or L) 0 Separate Billing Requested 8. Total Gross Assets (total Lines 1-7) 9. Funeral Expenses & Administrative Costs (Schedule H) z o i= :s ::l l- ii: ~ (.) w a: j -) - ) . -i '..._, ,) ,I \..,..1 258,673.05 (8) 266,833.59 (9) 15,552.84 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) (10) 11. Total Deductions (total Lines 9 & 10) (11 ) 15,552.84 251,280.75 0.00 (12) 12. Net Value of Estate (Line 8 minus Line 11) (13) 13. Charitable and Governmental Bequests/See 9113 Trusts for which an election to tax has not been made (Schedule J) 14.Net Value Subject to Tax (Line 12 minus Line 13) (14) 251,280.75 SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES 0.00 523.41 0.00 0.00 523.41 15. Amount of Line 14 taxable at the spousal tax rate, 239,649.50 x .00 (15) or transfers under Sec. 9116(a)(1.2) z 0 .045 (16) i= 16. Amount of Line 14 taxable at lineal rate 11,631.25 x ~ ::l D. 17. Amount of Line 14 taxable at Sibling rate 0.00 x .12 (17) :E 0 (.) 18. Amount of Line 14 taxable at collateral rate 0.00 x .15 (18) S 19. Tax Due (19) CHECK HERE IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT Copyright 2002 form software only The Lackner Group, Inc. Form REV-1500 EX (Rev. 6-00; ~. Decedent's Complete Address: STREET ADDRESS 80 Carpenter Lane CITY Newburg I STATE PA IZIP 17240 Tax Payments and Credits: 1. Tax Due (Page 1 Line 19) 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount (1 ) 523.41 0.00 Total Credits (A + 8 + C) (2) 0.00 3. InteresUPenalty if applicable D. Interest E. Penalty 8.03 TotallnteresUPenalty (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 on the tax due. B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (3) 8.03 (4) (5) 531.44 (5A) (58) 531.44 Make Check Payable to: REGISTER OF WILLS, AGENT ;;~'!ii~:. 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?............................................................. 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? ..... ............................................ ............................................. ..................... ," PLEASE ANSWER THE FOllOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS Yes ~ No o ~ [!J [!J ~ o 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death?......... 0 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation?...................................................................................................................... [!J 0 IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. Under penallies of perjury. I declare that I halle examined this return. including accompanying schedules and statements, and to the besl of my knowledge and belief. il is true. correct and complete. Declaralion of preparer other than the personal represenlatille is based on an information of which preparer has any knowledge. SIGNATURE OF PERSON RESPONSIBLE FOR FILING RETURN ADDRESS eorgie Ann.M ges DATE 80 Carpenter Lane Newburg, PA 17240 JI-;)d-cJS- DATE~-. ADDRESS DATE SIGNATURE OF PRE PARER OTHER THAN REPRESENTATIVE Brett B. Weinstein, Esquire /I ADDRESS 705 West OeKalb Pike King of Prussia, PA 19406 I cl r-- For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3% [72 P.S. S9116 (a) (1.1) (i)]. ' For dates of death on or after January 1, 1995, the tax rate imposed on the net value' of transfers to or for the use of the surviving spouse is 0% [72 P.S. S9116 (a) (1.1) (if)]. The statute does not exemot a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1, 2000: The tax rate imposed on the net value of transfers from a deceased child twenty-one ' years of age or younger at death to or for the use of a natural parent, an adoptive parent. or a stepparent of the child is 0% [72 P.S. S9116 (a) (1.2)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's'lineal beneficiaries is 4.5%. except as noted in 72 P .S. ~9116 1.2) [72 P.S. ~9116 (a) (1 )]. The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12% [72 P.S. 99116 (a) (1.3)]. A sibling is defined under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption. Rev-15011 EX+ (6-911) . SCHEDULE E CASH, BANK DEPOSITS,:& MISC. PERSONAL PROPERTY COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Manges, Clair E. FILE NUMBER 21-05-0071 Include the proceeds of litigation end the date the proceeds were received by the estate. All property jolntly-owned with the right of survivorship must be disclosed on schedule F. ITEM NUMBER DESCRIPTION VALUE AT DATE OF DEATH 1 Orrstown Bank savings account no. 735442 8,160.54 TOTAL (Also enter on Line 5, Recapitulation) 8,160.54 (If more space is needed, additional pages of the same size) Copyright (c) 2002 fonn software only The Lackner Group, Inc. Fonn PA-1500 Schedule E (Rev. 6-98) Rev-1510 EX+ (6-98) *' SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY COMMONWEALTHOFPENNSYlVAN~ INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Manges, Clair E. FILE NUMBER 21-05-0071 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~. ITEM DESCRIPTION OF PROPERTY DATE OF DEATH % OF DECO'S EXCLUSION TAXABLE NUMBER INCLUDE NAME OF TRANSFEREE, THEIR RELATIONSHIP TO DECEDENT AND THE DATE OF TRANSFER. ATTACH A COPY OF THE DEED FOR REAL ESTATE. VALUE OF ASSET INTEREST (IF APPLICABLE) VALUE 1 AIG Annuity IRA contract no. CF002357 - 21,279.25 100.000 21,279.25 Beneficiary: Georgie Ann Manges, spouse Accrued interest on Item 1 through date of death 54.29 100.000 54.29 2 Allstate annuity contract no. GA0583798 - 35,647.29 100.000 35,647.29 Beneficiaries: Georgie Ann Manges Accrued interest on Item 2 through date of death 239.84 100.000 239.84 3 Hartford IRA annuity contract no. 710994879- 25,346.39 100.000 25,346.39 Beneficiary: Georgie Ann Manges, spouse 4 Hartford IRA annuity contract no. 711033334 - 131,354.49 100.000 131,354.49 Beneficiary: Georgie Ann Manges, spouse 5 John Hancock annuity contract no. BK3106270 - 14,000.00 100.000 14,000.00 Beneficiary: Georgie Ann Manges, spouse Clair E. Manges Revocable Living Trust dated 7/17/03 - The decedent created a trust during his lifetime. The assets in the trust on date of death were as follows: 6 1.75-acre lot located in Shade Twp., Somerset 259.35 100.000 259.35 Co., Pa. - One-half interest; assessed value of 210.00 x common-level ratio factor of 2.47 x 1/2 7 48.549-acre lot located in Shade Twp., Somerset 30,492.15 100.000 30.492.15 Co., Pa. - One-half interest; assessed value of 24,690.00 x common-level ratio factor of 2.47 x 1/2 Total of Continuation Schedule(s) See attached page TOTAL (Also enter on LIne 7, RecapitulatIon) \ 258,673.05 (If more space is needed, additional pages of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc, Form PA-1500 Schedule G (Rev. 6-98) REV-1151 EX+ (12-99) *' SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DeceDENT ESTATE OF Manges, Clair E. Debts of decedent must be reported on Schedule I. FILE NUMBER 21-05-0071 ITEM NUMBER A. FUNERAL EXPENSES: DESCRIPTION AMOUNT See continuation schedule(s) attached 6,702.84 1. ADMINISTRATIVE COSTS: Personal Representative's Commissions B. Social Security Number(s) I EIN Number of Personal Representative(s): Street Address City Year(s) Commission paid State _ Zip 2. Attorney's Fees Weinstein Law Offices PC 5,350.00 3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Georgie Ann Manges Street Address 80 Carpenter Lane City Newburg 3,500.00 Relationship of Claimant to Decedent State Spouse PA Zip 17240 4. Probate Fees 5. Accountant's Fees 6. Tax Return Preparer's Fees 7. Other Administrative Costs TOTAL (Also enter on fine 9, Recapitulation) 15,552.84 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA.1500 Schedule H (Rev. 6-98) Rev-1502 EX+ (6-911) *' SCHEDULE H-A FUNERAL EXPENSES continued COMMONWEALTH OF PENNSYLVANIA ~HERrrANCETAXRETURN RESIDENT DECEDENT Manges, Clair E. IFILE NUMBER 21-05-0071 ESTATE OF ITEM NUMBER DESCRIPTION AMOUNT 1 Fogelsanger-Bricker Funeral Home, Inc. - Funeral bill 6.702.84 Subtotal 6.702.84 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule H-A (Rev. 6-98) SCHEDULE.J BENEFICIARIES (Part I, Taxable Distributions) ESTATE OF: Clair E. Manges 207-24-2033 10/29/2004 Item Name and Address of Person(s) Share of Estate Amount of Estate Number Receiving Property Relationship (Words) ($$$) 1 Georgie Ann Manges Spouse Life estate in 239,649.50 80 Carpenter Lane credit-shelter trust Newburg, PA 17240 and annuities 2 Clair E. Manges, jr. Son 1/5 of remainder 2,326.25 375 Ridge Road interest in Bloomsburg, PA 17815 credit-shelter trust 3 Michael S. Manges Son 1/5 of remainder 2,326.25 12720 Stonewall Road interest in Shippensburg, PA 17257 credit-shelter trust 4 Paula J. Taylor Daughter 1/5 of remainder 2,326.25 76 Carpenter Lane interest in Newburg, PA 17240 credit-shelter trust and 1/5 of annuity 5 Brian L. Manges Son 1/5 of remainder 2,326.25 1701 Cumberland Road interest in Aurora, IL 60504 credit-shelter trust 6 Christine M. Johnson Daughter 1/5 of remainder 2,326.25 17055 Timmons Road interest in Spring Run, PA 17262 credit-shelter trust Total 251,280.75 1 REV.1514 EX+ (..QuI *' SCHEDULE K LIFE ESTATE, ANNUITY & TERM CERTAIN (Check Box 4 on Rev-1500 Cover Sheet) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT EST ATE OF Manges, Clair E. FILE NUMBER 21-05-0071 This s?hedule is to b~ use~ for all sinQle life. joint or sl.!ccessive life estate and term certain calculations. For dates of death prior to 5-1-89. ~ctuanal fa~or~ for single hfe ~Iculabons can be obtamed from the Department of Revenue. Specialty Tax Unit. Actuarial factors can be found In IRS Publication 1457, Actuanal Values. Alpha Volume for dates of death on or after 5-1-89. Indicate the type of instrument which created the future interest below and attach a copy to the tax return. o Will I81lntervivos Deed of Trust 0 Other ( NEAREST AGE AT TERM OF YEARS LIFE ESTATE IS LIFE TENANT(S) DATE OF BIRTH DATE OF DEATH PAYABLE Georgie Ann Manages 12/18/1940 64 ~ Life or o Term of Years o Life or o Term of Years o Life or o Term of Years o Life or o Term of Years 1. Value of fund from which life estate is payable $ 23,359.20 2. Actuarial factor per appropriate table .50207 Interest table rate - o 31J'201o o &'/0 010% o Variable Rata 3. Value of life estate (Line 1 multiplied by Line 2) $ 11,727.95 NAME(S) OF NEAREST AGE AT PAYABLE ANNUITANTS DATE OF BIRTH DATE OF DEATH o Life or o Term of Years o Life or o Term of Years o Life or o Term of Years o Life or o Term of Years TERM OFYEARS ANNUITY IS 1. Value of fund from which annuity is payable $ 2. Check appropriate block below and enter corresponding (number) Frequency of payout-O WeekIy(52) 0 Bi-weekIy(26) 0 MonlhIy(12) 0 Q.aB1y(4) o Semkn1uaIy(2) 0 M1uaIy(1) 0 OCher 3. Amount of payout per period 4. Aggregate annual payment. Line 2 multiplied by Line 3 $ 0.00 5. Annuity Factor (see instructions) Interest table rate - 0 31J'201o 0 &'10 0 10% 0 Variable Rata 6. Adjustment Factor (see instructions) $ 7. Value of annuity - If using 31/2%.6%, 10% or if variable rate and period payout is at end of period, calculation is: Line 4 x Line 5 x Line 6 If using variable rate and period payout is at beginning of period, calculation is: (Line 4 x Line 5 x Line 6) + Line 3 N01E: The values of the funds which create the above future interests must be reported as part of the estate assets on Schedules A through G of this tax return. The resulting life or annuity interest(s) should be reported at the appropriate tax rate on Lines 13. 15, 16. 17 and 18. $ Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule K (Rev. 6-98) REV-1647 EX+ (9-00) *' SCHEDULE M FUTURE INTEREST COMPROMISE (Check Box 4a on Rev-1500 Cover Sheet) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Manges, Clair E. This schedule Is appropriate only for Estates of decedents dying after December 12,1982. This schedule is to be used for all future interests where the rate of tax which will be applicable when the future interest vests in possession and enjoyment cannot be established with certainty. Indicate below the type of instrument which created the future interest and attach a copy to the tax return o Will 181 Trust 0 Other FILE NUMBER 21-05-0071 I. Beneficiaries NAME OF BENEFICIARY RELATIONSHIP DATE OF BIRTH PGElO NEARESTBRTlI>AY 1. Georgie Ann Manges spouse 12/18/1940 64 2. Clair E. Manges, Jr. son 05/01/1964 40 3. Michael S. Manges son 02/27/1966 39 4. Paula J. Taylor daughter 04/28/1967 38 5. Brian L. Manges son 10/28/1968 36 II. For decedents dying on or after July 1, 1994, if a surviving spouse exercised or intends to exercise a right of wUhdrawal within 9 months of the decedent's death, check the appropriate block and attach a copy of the document in which the surviving spouse exercises such withdrawal right. o Unlimited right of withdrawal o Limited right of withdrawal III. Explanation of Compromise Offer: Part I continued: There is one additional beneficiary - Christine M. Johnson, daughter; date of birth 9/14/1970; age 34. Explanation of Compromise: It is intended that decedent's spouse Georgie Ann Manges will not exercise the 5&5 power given to her in Article Three, Section 3.04, and that her only withdrawals from the trust during her lifetime will be her income interest. < : IV. Summary of Compromise Offer: , 1. Amount of Future Interest: 23,359.20 2. Value of Line 1 exempt from tax as amount passing to charities, etc. (also include as part of total shown on Line 13 of Cover Sheet) 3. Value of Line 1 paSSing to spouse at appropriate tax rate 11,727.95 Check One 0 6% 03% Qs:I O~. (also include as part of total shown on Line 15 of Cover Sheet) 4. Value of Line 1 taxable at lineal rate 11 ,631.25 06% DSI4.5% , (also include as part of total shown on Line 16 of Cover Sheet) 5. Value of Line 1 taxable at sibling rate (12%) (also include as part of total shown on Line 17 of Cover Sheet) 6. Value of Line 1 taxable at collateral rate (15%) (also include as part of total shown on Line 18 of Cover Sheet) 7. Total value of Future Interest (sum of Lines 2 thru 6 must equal Line 1) 23,359.20 ---- Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1S00 Schedule M (Rev. 6-98) Rey.1151 EX (1.97) (I) . SCHEDULE 0 ELECTION UNDER SEq. 9113(A) SPOUSAL DISTRIBUTIONS COMMONWEALTH OF PENNSYlVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER Manges, Clair E. 21-05-0071 Do not complete this schedule unless the estate Is making the election to tax assets under Section 9113(A) of the Inheritance & Estate Tax Act. If the election applies to more than one trust or similar arrangement, a separate form must be filed for each trust. This election applies to the Credit-Shelter Trust Trust (marital, residual A, B, By-pass, Unified Credit, etc.). If a trust or similar arrangement meets the requirements of Section 9113(A), and: a. The trust or similar arrangement is listed on Schedule 0, and b. The value of the trust or similar arrangement is entered in whole or in part as an asset on Schedule 0, then the transferor's personal representative may specifically identify the trust (all or a fractional portion or percentage) tD be Included in the election to have such trust or similar property treated as a taxable transfer in this estate. If less than the entire value of the trust or similar property is included as a taxable transfer on Schedule O. the personal representative shall be considered to have made the election only as to a fraction of the trust or similar arrangement. The numerator of this fraction is equal to the amount of the trust or similar arrangement included as a taxable asset on Schedule O. The denominator is equal to the total value of the trust or similar arrangement. Part A: Enter the description and value of all interests, both taxable and non-taxable, regardless of location, which pass to the decedent's surviving spouse under a Section 9113 (A) trust or similar arrangement. DESCRIPTION VALUE See continuation schedule(s) attached Part A Total 23,359.20 Part B: Enter the description and value of all interests included in Part A for which the Section 9113 (A) election to tax is be ng made. DESCRIPTION VALOE See continuation schedule(s) attached Part B Total 23,359.20 (If more space is needed, insert additional sheets of the same size) Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA.1500 Schedule 0 (Rev. 6-98) Rev-1502 EX+ (6-98) *' SCHEDULE 0 ELECTION UNDER SEC.. 9113(A) (SPOUSAL DISTRIBUTIONS) Part A. All Property continued COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Manges, Clair E. FILE NUMBER 21-05..0071 ITEM NUMBER DESCRIPTION AMOUNT 1 Credit-Shelter Trust u/w/o Clair E. Manges 23.359.20 Subtotal 23.359.20 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule O-A (Rev. 6-98) Rev-1502 EX+ (6-98) *' SCHEDULE 0 ELECTION UNDER SEC. 9113(A) (SPOUSAL DISTRIBUTIONS) Part B. Election Is Made continued COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF Manges, Clair E. FILE NUMBER 21-05-0071 ITEM NUMBER DESCRIPTION AMOUNT 1 Credit-Shelter Trust u/w/o Clair E. Manges 23.359.20 Subtotal 23.359.20 Copyright (c) 2002 form software only The Lackner Group, Inc. Form PA-1500 Schedule O-B (Rev. 6-98) ..~'. LAST WILL AND TEST AMENT (Pour-Over Will) OF CLAIR E. MANGES IDENTITY t--:l o ~g -'J I, CLAlR E. MANGES, residing in the County of Cumberland, CommonweaJt~~nfcnnsy~nia. ;-; ~ e? .... . . ~ '. J . . ..liP ,) (... bemg of sound mmd and memory, and not actmg under duress or undue mfluence! -,Effiany person ' , -! '." I I \.~.; whomsoever, hereby declare this to be my Last Will and Testament, and I do hereby revo~ alttlther ',::i_~ ... ~_'_- ~. t.- \. .,1 former Wills and Codicils to Wills heretofore made by me. My Social Security Numberj~2;11)24-~~33" ,''', :: :~! .... . '::. d'~ All reference made herein to "spouse or my spouse" refers to the person to whonrfam cU"9I1tJy ..' ~~~ , '-''1'' married, namely, GEORGIE ANN MANGES. By the ensuing provisions of this Will,}t is my intF.!3tion '.' >.:'2 to dispose of my interest in our property; I do not intend to dispose of anything belonging to my wi fg:Jbr to ' I put her to any election. I have the following children: Clair E. Manges, Jr., born May I, 1964; Michael S. Mange.v, born February 27,1966; Paula J. Taylor, born April 28, 1967; Brain L. Manges, born October 28,1968; and CllristilJe M. JollIIson, born September 14, 1970. DEBTS, TAXES AND ADMINISTRATION EXPENSES I have provided for the payment of all my debts, expenses of administration of property wherever situated passing under this Will or otherwise, and estate, inheritance, transfer, and succession taxes, other than any tax on a generation-skipping transfer that is not a liability of my Estate (including interest and penalties, if any) that become due by reason of my death, under THE CLAIR E. MANGES AND GEORGIE ANN MANGES REVOCABLE LIVING TRUST executed on even date hen:with (the "Revocable Trust"), or if my spouse predeceases me, under the Survivor's Trust created by the said Revocable Trust. If the Revocable Trust assets should be insufficient for these purposes, my Executor shall pay any unpaid items from the residue of my Estate passing under this Will, without any apportionment or reimbursement. In the alternative, my Executor may demand in a writing addressed to the Trustee of the Trust an amount necessary to pay all or part of these items, plus claims, pecuniary legacies, and family allowances by court order. PERSONAL AND HOUSEHOLD EFFECTS It is my intent that all my personal and household effects were transferred to the Revocable Trust as a result of the Declaration ofIntent signed this date. If there are any questions regarding the ownership or disposition of these assets, it is my desire that such assets pour into the Revocable Trust, signed by me this date in accordance with the provisions ur tIll: section titled "Residue of Estate:' RESIDUE OF ESTATE I give, devise and bequeath all the rest, residue and remainder of my property of every kind and description (including lapsed legacies and devices), wherever,situated and whether acquired before or after the execution of this Will, to the Trustee under that certain Trust executed by me on the same date of the execution of this Will. The Trustee shall add the property bequeathed and devised by thjs item to the corpus of the above described Trust and shall hold, administer and distribute said property in accordance with the provisions of the said Trust, including any amendments thereto made before my death. POUR-OVER 'WILLS Page I (V- )rYl Testator If for any reason the said Trust shall not be in existence at the time of death, or if for any reason a courl of competent jurisdiction shall declare the foregoing testaJinentary disposition to the Trw;tee under said Trust as it exists at the time of my death to be invalid, then I give all of my Estate including the residue and remainder thereof to that person who would have been the Trustee under the Trust, as Trustee, and to their substitutes and successors w1der the Trust, described herein above, to be held, managed, invested, reinvested and distributed by the Trustee upon the terms and conditions pertaining to the period beginning with the date of my death as are constitut~d in the Trust as at present constituted giving effect to amendments, if any, hereafter made and for that purpose I do hereby incorporate such Trust by reference into this my Will. EXECUTOR I hereby nominate and appoint Georgie A"n Manges as my Independent Executor of this, my Last Will and Testament, to serve without bond. In the event the first named Executor shan predecease me or is unable or unwilling to act as my Executor for any reasons whatsoever, then and in that event, I. hereby nominate and appoint Clair E. lllanges, Jr. and Michael S. lllalJges to serve without bond as my Joint Executors. In the event that one of the Joint Executors shan predecease me, or is unable or unwilling to act as my Executor for any reason whatsoever, then and in the event I hereby nominate and appoint the remaining Executor to serve without bond as my Independent'Executor. Whenever the word "Executor" or any modifying or substituted pronoun therefore is used in this my Wi11, such words and respective pronouns shall be held and taken to include both the singular and the plural, the masculine, feminine and neuter gender thereof, and shall apply equally to the Executor named herein and to any successor to substitute Executor acting hereunder, and such successor or substitute Executor shall possess all the rights, powers, duties, authority, and responsibility conferred upon the Executor origlnally named herein. I EXECUTOR POWERS: By way of Illustration and not of limitation and in additipn to any inherent, implied or statutory powers granted to executors generally, my Executor is specifically authorized and empowered with respect to any property, real or personal, at any time held under any provision of this my WilL to allut, allocate between principal and income, assign, borrow, buy, care tor, collect, compromise claims, contract with respect to, continue any business of mine, convert, deal with, dispose of, enter into, exchange, hold, improve, incorporate any business of mine, invest, lease, manage, mortgage, grant and exercise options with respect to, take possession of, pledge, receive, release, repair, sell, sue for, make distributions in cash or in kind of partly in each without regard to the income tax basis of such asset and in general, exercise all of the powers in the management of my Estate which any individual could exercise in the management of similar property owned in its O'W1J right upon such tenus and conditions as to my Executor may seem best, and execute and deliver any and all instruments and do all acts which my Executor may deem proper or necessary to carry out the purpose of this my Will, without being limited in any way by the specific grants or power made, and without the necessity of a court order. My Executor shall have absolute discretion, but shall notbe required, to make adjustments in the rights of any Beneficiaries, or among the principal and income accounts to compensate for the consequences of any tax decision or election, or of any investment or administrative decision, that my executor believes has had the effect, directly or indirectly, of preferring one Beneficiary or group of PUUR-OVER WILLS ' Page 2 C f, i.rt Testator Beneficiaries over others. In determining the Federal Estate and Income Tax liabilities of my Estate, my Executor shall have discretion to select the valuation date and to determine whether any or all of the allowable administration expenses in my Estate shall be used as Federal Estate Tax deductions or as Federal Income Tax deductions and shall have the discretion to file a joint income tax retum with my spouse. <':ONT.I!:STS AND Sr.l!:CU'lC OMISSIONS If any beneficiary under this will, singly or in conjunction with any other person or persons, directly or indirectly: 1. contests in any court the validity of this will or, iIi any manner, attacks or seeks to impair or invalidate any of its provisions; . 2. contests in any court the validity of the Testator'sffestatrix's Will or, in any manner, attacks or seeks to impair or invalidate any of its provisions; 3. seeks to obtain an adjudication in any proceeding in ,any court that this trust or any of its provisions or that Tcstator'srrestatrix's Will or any of its provisions is void; 4. claims entitlement by way of any written or ota} contract to any portion of the Testator'sffestatrix's estate, whether in probate or under;this instrument; 5. unsuccessfully challenges the appointment of any person named as Executor or successor Executor of the Testator'srrestatrix' sWill; 6. objects in any manner to any action taken or proposed to be taken in good faith by the Executor of the Testator's/Testatrix's Will; 7. objects to any construction or interpretation of this Will, or any provision of it, that is adopted or is proposed in good faith by the Executor; 8. unsuccessfully seeks the removal of any person acting as the Executor of the Tcstator'srrestatrix's Will; 9. files any creditor's claim in Testator'srrestatrix's estate (without regard to its validity), whether the claim arose before or after the date of this instrument, but excepting claims for cash advanced or paid for expenses of the Testator'srrestatrix's last illness or funeral paid by said claimant; 10. attacks or seeks to invalidate any designation of beneficiaries for any life insurance policy on Testator'srrestatrix's life; 11. attacks or seeks to invalidate any designation of beneficiaries for any pension or IRA or other form of qualified or non-qualified asset or deferred compensation account, agreement or arrangement; 12. attacks or seeks to invalidate any will which Testator/Testatrix has created or may create during Testator' srrestatrix' s lifetime, or any provision thereof, as well as any gift which Testator/Testatrix has made or will made during Testator'srrestatrix's lifetime, whether before or after the date of this instrument; 13. attacks or seeks to invalidate any transaction by which Testator/Testatrix sold any assets (whether to a relative of Testator'sffestatrix's or otherwise); or 14. refuses a request of Testator'srrestatrix's, Executor or other fiduciary to assist in the defense against any of the foregoing acts or proceedings, then that person's right to take any interest given to him or her bylthis tmst shall be detennined as it would have been determined if the person had predeceased the execution of this will instrument without issue surviving. The provisions of the foregoing paragraph shall not apply to any disclaimer by any person of any benefit POUR-OVER WILLS Page 3 c:. E ;vr Testator r r" under this will. In the event that any of this provision is held to be invalid, void or illegal, the same shall be deemed severable from the remainder of this provision and shall in no way affect, impair or invalidate any other provision in this will; and jf such provision sha11 be deemed invalid due to its scope or breadth, such provision shall be deemed to exist to the extent ofthe scope or breadth permitted by law. SIMULTANEOUSDEATII If my spouse and I should die under circumstances such that the order of our deaths cannot be determined, then it shall be conclusively presumed for the purpQse of this Will that my spouse survived mc. If any other Beneficiary should not survive me for sixty (60) days, then it shall be conclusively presumed for the purpose ofthis my Will that said Beneficiary predeceased me. (J~~~* c:CA1R E. MANGES Testator POUR-OVER WILLS Page 4 r " . This instnlment consists of 6 typewritten pages, including the Attestation Clause, Self-Proving Clause, signature of Witnesses, and acknowledgment of officer. I have signed my name at th7J'ouom of each f the preceding pages. This instrument is being signed by me on this )7....=-. day of .J-IJo:J . ~...............,..................,-~~ A TrEST ATION CLAUSE 'Ole Testator whose name appears above declared to us, the undersigned, that the fon:goiug instrument was his Last wm and Testament, and he requested us to act as wi1l1esses to such instrument and to his signature thereon. The Testator thereupon signed such instrument in our presence. At the Testator's request, the undersigned then subscribed our names to the instrument in our own handwriting in the presence of the Testator. The undersigned hereby declare, in the presence of each of us, that we believe the Testator to be of sound and disposing mind and memory. Signed by us on the same day and year as this Last Will and Testament was signed by the Testator. WITNESSES: ~K;AJ i {'JtuL ,Do L0t1 ~{Y)f (. I CIa! L (Printed Name of Witness) ADDRESSES: 3ffLf {)f/{JrbeJr1 (flL{tcA fa. Ci:i;:;'~~J' Pit l"P-tfO.~ k ftjavk 11.~ Ke.v. Ma..1<- A - C.lo..l~ (Printed Name of Witness) 988Lf Of!-efbe,iJ chV\rd1 j)J' AJeuJ~ rll /1;;.'10 City, State, Zip V 5 I POUR-OVER WILLS . Page 5 r: E /'N Testator COMMONWEAL Tll OF PENNSYLVANIA COUNTY OF CUMBERLAND SELF-PROVING CLAUSE dersigned au~~)tis~OnallY appeared CLAIR E. MANGES, and . , known to mt: to be the estator and the wi esses, respectively, whose names are subscribed to the foregoing instrument in their respective capacities, and all of them being by me duly sworn, CLAIR E. MANGES, Testator, declared to me and to the witnesses, in my presence, that the instrument is his Will and that he had willingly made and ex.ecuted it as his free act and deed for the purposes therein expressed; and the Witnesses, each on his Of her oath, stated to me in the presence and hearing of the Testator, that the Testator haQ declared to them that the instrument is his Will and that he executed the same as such and wanted each of them to sign it as a witness; and upon their oaths, each witness stated further that he did the same as a witness in the presence of the Testator, and at his request and that he was at that time eighteen (18) years of age or over and was of sound mind. and that each ofthe witnesses was then at least fourteen (14) years of age. g:~ ~ .~ C[ 'E. MANGES ~ Testat 4:3~~L (Printed Name of Witness) w&: ~ dCk/ ~e\/. 1~f"U. CbrJ( (Printed Name of Witness) SUBSCRIBED AND ACKNOWLEDGED 1;re m~AWANG. ES. Testator, and subscribe nd sw m b fore me by ~ ~ eI cmu __ ,,' ", witnesses, this the ) 7 day of ~~ ot ry Public. ( ) \.../ NOTARIAL SEAL JEROME 1. lEWIS, NOTARY PUBliC TREOYfFRIN TWP., CHESTER COUNTY MY COMMISSION ()(PIRES SEPT. 25 2006 POUR-OVER \VILLS Page 6 -r~-- REVOCABLE LIVING TRUST AGREEMENT Ih AGREEMEN,:f AND DECLARATION OF TRUST, made effective the J 7 ./ day of , 2~ between CLAIR E. MANGES AND GEORGIE ANN MANGES, nd "wife, residents of the County of Cumberland, Commonwealth of Pennsylvania, as Grantors, L E. MANGES AND GEORGIE ANN MANGES, as Settlors, and CLAIR E. MANGES AND EORGIE ANN MANGES, as Co-Trustees; WITNESSETH; WHEREAS, in order to provide the future comfort and security of themselves and the other beneficiaries hereafter mentioned, Grantors desire to create a revocable trust for the purposes hereinafter set forth; ARTICLE ONE Terms olthe Trust Section 1.01 - Trust Estate Defined NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, this Revocable Trust is formed to hold title to real and personal property for the benefit of the Scttlors of this Trust and to provide for the orderly use and transfer of these assets upon the death of the Settlors. The "Trust Estate" is defined as all property transfelTcd or conveyed to and received by the Trustee held pursuant to the terms of this instrument. The Trustee is required to hold, administer, and distribute this property as provided in this Trust Agreement. The name of this Trust Agreement shall be: THE CLAIR E. MANGES AND GEORG$: ANN MANGES REVOCABLE LIVING TRUST AGREEMENT 7/7 / DATED 20 OJ , - Section 1.02 - Definitions of Terms In the interpretation or construction of the provisions of this Trust Agreement, the following words and phrases shall have the meanings set forth below: 1. The term "Husband" shall mean CLAIR E. MANGES 2. The term "Wife" shall mean GEORGIE ANN MANGES. 3. The term "Settlor" shall refer individually and collectively to Husband and Wife. 4. The term "Descendant" shall mean the lawful issue of a deceased parent in the line of descent, but does not include the issue of any parent who is a descendant of the deceased person in question and who is living at the time in question. REVOCABLE LIVING TRUST AGREEMENT Page 1 5. The terms "Child" and "Descendant" include any issue born to decedent, a child legally adopted by the decedent, and a posthumous child of a decedent. A posthumous child is to be considered as living at the time of his or her parent's death. 6. The term "Survives" or "Surviving", unless o"therwise indicated herein, shall be construed to mean surviving the decedent for at least sixty~.( 60) days. If the person referred to dies within sixty (60) days of the death of the decedent, the reference to him or her will be construed as if he or she had failed to survived tbe decedent; provided, however, that any such person will have, during such period, the right to the use and enjoyment as a life tenant of all property in which his or her interest will fail by reason of death during such period. 7. The term "Issue" will include all natural and adopted children, if applicable, and descendants and those legally adopted into the line of descent. 8. The term "Per Stirpes" means strict per stirpes and does not mean per capita with representation. Beneficiaries entitled to take under a "per stirpes" clause will include both natural and adopted children and their descendants. 9. The terms "Trust Assets" and "Trust Estate" include all assets of any trust created hereunder and income derived from such assets and all proceeds of any description derived from the sale, exchange, or other disposition of such assets. 10. When required to give reasonable effect to the context in which used, pronouns in the masculine, feminine, or neuter gender include each other, and nouns and pronouns in the plural or singular number include each other." Section 1.03 - Trustee Designation Husband and wife are hereby designated as Co-Trustees. The Co-Trustees shall serve jointly and severally and either shall have full authority to act for the Trust independently. Should either husband or wife become unable because of death, incapacity, or other cause to serve as a Co-Trustee, or should either resign as Co-Trustee before the natural termination of this Trust, the remaining Co-Trustee, husband or wife, shall thereafter serve as sole Trustee. The term "Trustee" as used in this Trust Agreement shall refer collectively to husband and wife so long as they serve as Co-Trustees, to the spouse who serves as the sole Trustee, and/or to any Successor Trustee who assumes the: role of Trustee. These Trustees shall serve in the order as provided in Section 9.0 I of this Trust Agreement. Section 1.04 - Additions to Trust Properties 1. The Trustee, at any time during the continuance of this Trust in his or her sole discretion after consideration of the possible tax consequ~nces to all concerned, is authorized to receive into the Trust additions of cash and other properties from any source whatsoever, whether by gift, will, or otherwise. However, the Trustee shall accept all assets which any person or persons may give, devise, or bequeath by Last Will and Testament to this Trust, and shall accept all assets transferred to this Trust pursuant to the provisions of any other Trust document or documents. 2. In addition, any person or persons may designate this Trust as the Beneficiary, Primary or Contingent, of any death benefits to include insurance benefits, pension benefits, or other benefits. Until such benefits mature, the Trustee shall have no responsibility with respect to those benefits. REVOCABLE LIVING TRUST AGREEMENT Page 2 -!~ Section 1.05 - Apportionment The Trustee of the Trust is directed to apportion receipts and e~penditures of the types described below between principal and income as follows: ' 1. Whenever the principal, or any part thereof, of the Trust property is invested in securities purchased at a premium or at a discount, any premium will be charged against principal and any discount will be credited to principal; 2. Any stock dividends and rights to purchase additional stock issued on securities held in trust will be treated as principal. All other dividends, except liquidating distributions, will be treated as income; and 3. The amount of any applicable depletion allowance for federal income tax purposes will be treated as income. . Section 1.06 - Administration of Trust During Our Lifetime During our lifetime, the trust shall be held and administered as follows: I. All property and other assets transferred to this trust shall be allocated to and held in separate shares, the first such share being designated the "Clair E. Manges Trust Share" and the second share being designated the" Georgie Ann Manges Trust Share". 2. Each Grantor's separate Trust Share shall be composed of the assets as follows: a. The Grantor's one-half interest in jointly held property transferred to the Trust; and b. The Grantor's individually owned property which is transferred to the Trust. While each share shall be held and administered separa~ from the other, for tax and accounting purposes, the Trustee is authorized to hold or invest the separate shares in common investments and co-ownership of assets. 3. The Trustee shall pay to or apply for the benefit of CLAIR E. MANGES all of the net income of the CLAIR E. MANGES Trust 'Share, in convenient installments, not less often than quarter-annually, and in addition thereto, shall pay so much of the income and principal of such Trust Share to or for the benefit of CLAIR E. MANGES as he may direct from time to time, or in the absence of a direction, as the Trustee may determine to be advisable for his medical care, support, maintenance, and general welfare. 4. The Trustee shall pay to or apply for the benefit .of GEORGIE ANN MANGES all of the net income of the GEORGIE ANN MANGES Trust Share in convenient installments, not less often than quarter-annually, and in addition thereto, shall pay so much of the income and principal of such Trust Share to or for the benefit of GEORGIE ANN MANGES as she may direct from time to time, or in the absence of a direction, as the Trustee may determine to be advisable for her medical care, support, maintenance, and general welfare. REVOCABLE LIVING TRUST AGREEMENT Page 3 All property that a Settlor transfers to the Trustf:e pursuant to this instrument which was community property, quasi-community property', or separate property at the time of the transfer shall remain respectively community property, quasi-community property, or the . ; separate property of the Settlor transferrmg such:property to the Trust. Community and quasi-community property transferred to the Trustee by the Settlors shall be their community property and treated as such. This property, as invested and reinvested, together with the rents, issues, and profits therefrom (hereinafter referred to as the "Community Estate" or the "Community Property") shall retain its character as community property during the joint lifetimes of the Settlors in spite of any change in the situs of the Trust, subject, however, to the provisions of this Agreement. Section 1.07 - Discretionary Termination The Trustee may terminate any Trust when, in the opinion of the' Trustee, the principal is reduced to such an extent that it is not in the best interest of the Beneficiary or Beneficiaries to continue the Trust. The judgment of the Trustee with respect to this decision to terminate will be final and not subject to judicial review. If the Trustee terminates a Trust according to this Section, the date the Trust terminates will be deemed the date fixed for temlination of the Trust, and the Trustee will distribute the assets of the terminating Trust to the Beneficiary or Beneficiaries pursuant to this Agreement. Section 1.08 - Amendment and Revocation We hereby retain the following powers, exercisable at any time during our lifetimes: 1. To withdraw any of the property included in our separate share of the Trust Estate by giving the Trustee written notice specitying the'property so withdrawn, in which event, the Trustee shall promptly transfer and deliver such property to us or our designee. 2. To amend the provisions of this Trust declaration in any respect without the necessity of securing the consent of the Trustee to such c,hanges, in which event, a copy of the amendment shall be promptly furnished to the Tt.ustee; provided, however, that following the death of one of us, the survivor shall have no power to amend the tenDS of the Trust declaration with respect to the Trust Share of th~ first of us to die. 3. To revoke this Trust by giving the Trustee wrilten notice of such revocation, in which event, the Trustee shall promptly transfer and deliver the property constituting the Trust Estate to us or our designee together with an accounting therefore; provided, however, that following the death of one of us, the survivor shall have no power to revoke the terms of the Trust declaration with respect to the, Trust Share of the first of us to die. Section 1.09 - Revocation or Alteration by Settlor Alone The rights of revocation, withdrawal, alteration, ~nd amendment reserved in this Article m<lY only bc exercised by the Settlor and may not be exercised by any other person, including an agent, a guardian, or a conservator. Section 1.10 - Irrevocability Except as otherwise provided, on the death of either Settlor, the designation of Beneficiaries of specific gifts in this Trust shall become irrevocable and not subject to amendment or modification. REVOCABLE LIVING TRUST AGREEMENT Page 4 ' Section 1.11 - Settlor Powers The surviving Settlor shall be the Trustee unless and until he or she resigns in writing or is detennincd incompetent under the tenns provided herein. The surviving Settlor shall retain all absolut{: rights to discharge or replace any Successor Tmstee of any portion or share of the Trust which is revocable by the surviving Settlor so long as the Settlor is competent. ARTICLE TWO Trust Admillistratioll Section 2.01 - Trust Income During the joint lives of the Settlors, the Trustee shall at least anrlIually, unless otherwise direcwd by both Settlors in writing, pay to or apply for the benefit of husband ~nd wife, all of the net income from the Trust Estate in the same proportions as each ofthe spouse's respective interests in the Trust Estate. \ Section 2.02 - Protection of Settlor in Event of Incapacity. During the joint lives ofthe Settlors, should either Settlor become incapacitated as defined in Section 2.03 below, the Trustee may, in the Trustee's absolute discretion, pay income and principal for the benefit of the incapacitated Settlor. In addition, the Trustee, in his or her ~bsolute discretion, may pay to or apply, for the benefit of that Settlor, such sums from the net income' and from the principal of the Settlor's separate Estate as the Trustee believes is necessary or advisable for the medical care, comfortable maintenance, and welfare of the Settlor. Section 2.03 - Incapacity I. A person is detetmined to be incapacitated if any Trustee or Beneficiary hereunder comes into possession of any of the following: a. A jurisdictionally applicable court order holding the party to be legally incapacitated to act on his or her behalf and appointing a guardian or conservator to act for him or her; or b. Written certificates which are duly executed, witnessed, and acknowledged of two licensed physicians, each certifying that the physician has examined the person and has concluded that, by reason of accident, mental d~terioration, or other cause, such person 'has become incapacitated and can no longer act rationally and prudently in his or her own financial best interest; or c. Evidence which such Trustee or Beneficiary deems to be credible and currently applicable that a person has disappeared, is unaccountably absent, or is being detained under duress, and that he or she is unable to effec:tively and prudently look after his or her own best interests, then in that event and under those circumstances: I 1) Such person is deemed to have become incapacitated, as that ternl is used in this Trust agreement; and ! 2) Such incapacity is deemed to continue until such court order, certificates, and I or circumstances are inapplicable or have been ~evoked. REVOCABLE LIVING TRUST AGREEMENT Page 5 n"V - I 2. A physician's certificate to the effect that the person is no longer incapacitated shall revoke a certificate declaring the person incapacitated. The certificate which revokes the earlier certificate may be executed by either the original certifying physician or by two other licensed, board certified physicians. No Trustee shall be under any duty to institute any inquiry into a person's possible incapacity. The reasonable expense of any such inquiry shall be paid from the Trust Assets. Section 2.04 - Principal Invasion During the joint lives of the Settlors, should the net income of assets contained in this Trust be insufficient to provide for the care, maintenance, or support of the Settlors as herein defined, the Trustee may, in the Trustee's sole and absolute discretion, pay to or apply for the benefit of the Settloni or either of them, or any of their dependents, such amounts from the principal of the Trust Estate as the Tmstee deems necessary or advisable for the care, maintenance, or support of the Settlors. Section 2.05 - Residence If the Settlor's residence property is a part of the Trust, the Settlors shall have possession of and full management of the residence and shall have the right to occupy it free of rent. Any expenses arising from the maintenance of the property and from all taxes, liens, assessments, and insurance premiums, are to be paid from the Trust to the extent that assets are available for payment. It is the intent of the Settlors to retain all homestead rights available to them under the applicable state law. ARTICLE THREE Administration upon Deat" of First Settlor Section 3.01 - Provisions After The }'irst Death On the death of either Settlor leaving the other Settlor surviving him or her, the Trustee shall collect all insurance proceeds payable to the Tmstee by reason of such death and all bequests and devises distributable to the Trust Estate. Section 3.02 - Control of Assets The surviving spouse may, at any time by written notice, require the Trustee either to make any nonproductive property of this Trust productive or to convert productive property to nonproductive property, each within a reasonable time. The surviving spouse may further require the Trustee to invest part or all of this share of Trust Assets for the purpose of maximizing income rather than growth or growth rather than income. Section 3.03 - Division into Shares 1. Upon the death of either Settlor, if the deceased Settlor is survived by the other Settlor, the deceased's individual Tmst Share, including any additions made by reason of the deceased Settlor's death, shall be divided into two shares. 2. The Trustee, in his or her sole discretion, may defer the division or distribution of the deceased's individual Trust Share until six months after the deceased Trustor's death. If the division or distribution of the deceased's individual Trust Share is so deferred, the deferred division or distribution shall be made as if it had taken place at the time prescribed above. In addition, all REVOCABLE LIVING TRUST AGREEMENT Page 6 rights given to the Beneficiaries under the provisions of tjlis Trust Agreement which follow shall be considered to have accrued and vested as of that prescribed time. 3. Upon the death of the first Settlor to die ("Predeceased Spouse"), the Trustee shall divide the deceased's individual Trust Share (which shall include any property which may be added from the Predeceased Spouse's general estate) as follows: a. The Trustee shall divide the balance of the deceased Trustor's individual Trust Share into two (2) separate shares (hereinafter designated as "Share A" and "Share B"). Share B shall be composed of cash, securities, and/or other property of the deceased's individual Trust Share (undiminished by any estate, inheritance, succession, death, or similar taxes) having a value equal to the maximum marital deduction as finally determined in the Predeceased Spouse's federal estate tax proceedings, less the aggregate amount of marital deductions, if any, allowed for such estate tax purposes by reason of property or interest in property passing or which have passed to' the Surviving Spouse otherwise than pursuant to the provisions of this paragraph; provided, however, that the amount of Share B hereunder shall be reduced by the amount, if any, needed to increase the Predeceased Spouse's taxable estate (for federal estate tax p~rposes) to the largest amount that, after allowing for the unified credit against federal estate tax and the state death tax credit against such tax (but only to the extent that the use of such state death tax credit does not increase the death tax payable to any state), will result in the smallest (if any) federal estate tax being imposed on the Predeceased Spouse's estate. The term "Maximum Marital Deduction" shall not be construed as a direction by the Predeceased Spouse to exercise any election respecting the deduction: of estate administration expenses, the determination of the estate tax valuation date, or any other tax election which may be available under any tax laws, only in such manner as will result in a larger allowable estate tax marital deduction than if the contrary election had been made. The Trustee shall have the sole discretion to select the assets which shall constitute Share B. In no event, however, shall there be included in Share B any assets or the proceeds of any asset which will not qualify for the federal estate tax. marital deduction. Share B shall be reduced to the extent that it cannot be created with such qualifying assets. The Trustee shall value any asset selected by the Trustee for !ctistribution in kind as a part of Share B at the value of such asset at the date of distribution of such asset. The balance of the deceased's individual Trust Share, after the assets have been selected for Share B, shall be allocated to Share A. Share A and Share B shall be administered and distributed as her~inafter set forth. Section 3.04 - Credit Shelter Trust If either of the Settlors survives the other, the Trustee shall set apart and hold as a separate trust (the "Credit Shelter Trust") the assets referred to as Share A in Section 3.03 above. The Trustee shall hold, manage, invest, and reinvest the assets ofthis Credit Shelter Trust, shall collect the income therefrom, and shall pay the net income to or for the benefit of the surviving Settlor in convenient installments at least quarter-annually; provided, however, that the surviving Grantor may elect to pass any portion of said income to the remainder Beneficiaries of the Trust. In addition, the Trustee may pay to or for the benefit of the surviving Settlor for the health, education, maintenance, or support of the surviving Settlor, any part or all of the principal of this Trust, as the Trustee may determine in its sole discretion, without considering other resources available to the surviving Settlor. The surviving Settlor shall have the right to demand and receive, from the principal of this Trust in each of its fiscal years, the greater of five thousand dollars ($5,000.00) or five percent (5%) REVOCABLE LIVING TRUST AGREEMENT Page 7 of the fair market value of such principal determined as of the iast day of such fiscal year. Such right shall lapse to the extent it is not exercised in any year. Any commission payable with respect to principal so withdrawn shall be charged against such principal. No person, who at any time is acting as Trustee hereunder, shall have any power or obligation to participate in any discretionary authority which the Settlor has given to the Trustee to pay principal or income to such person, or for his or her benefit or in relief of his or her legal obligations; provided, however, that if an individual Trustee has discretion to invade principal for himself or herself and such discretionary authority is limited by an ascertainable standard, then such Trustee may invade principal (if limited by such standard) for himself or herself, but not in relief of his or her legal obligations. I The plan of distribution and all terms of this Credit Shelter Trust shall be irrevocable and unamenable at any time after said Credit Shelter Trust comes into being. . The Credit Shelter Trustee(s) shall invest the assets of the Credit Shelter Trust to produce a reasonable income for the benefit of the surviving Grantor without subject~lg the principal to unreasonable risk of loss. The Credit Shelter Trustee(s) shall be authorized and empowered to invest, reinvest, manage, transfer, and convey any and all property held in this Credit Shelter Trust, including all powers now or hereafter conferred upon Trustees by applicable state law, and als.o those power appropriate to the orderly and effective administration ofthe Trust. The Credit Shelter Trustee(s) shall make a written accounting to all income and remainder Beneficiaries or to their guardians at least annually and at the time that all assets of this Credit Shelter Trust are distributed. Said accounting shall consist of a record showing assets on hand at the time of the last accounting, plus additions, minus expenses and distributions, which shall equal cun'ent assets on hand. The Credit Shelter Trustee(s) shall not be required to obtain authority or approval of any court in the exercise of any power conferred upon the Trustee(s), nor sh~ll said Trustee(s) be required to make accountings or reports to any court. Upon the death of the surviving Settlor, any accrued income shall be paid to the estate of the surviving Settlor and the remaining principal of this Credit Shelter Trust shall be held, administered, and disposed of in accordance with the dispositive provisions of this agreement. Section 3.05 - Qualified Terminable Interest Trust If either of the Grantors survives the other and there are assets allocated to Share B described in Section 3.03 above, then the Trustee shall set apart said assets and hold them as a separate trust (the "Qualified Tenninable Interest Trust"). The Trustee shall hold, manage, invest, and reinvest the assets of this Qualified Terminable Interest Trust, shall collect the income the~efrom, and shall pay the set income to or for the benefit of the surviving Grantor in convenient installments at least quarter-annually. Upon the surviving Grantor's death, any accrued, undistribuied income shall be distributed to said surviving Grantor's estate. The remaining principal shall be added to and become part of the Credit Shelter Trust and shall be held and administered and disposed of in accordance with the plan of distribution for the Credit Shelter Trust as provided in Sections 3.04 and 4.03, after provision has first been made for the payment of any estate, inheritance, transfer, succession, or other death taxes, payable by reason of the inclusion of the value of the Trust property in swd surviving Grantor's estate. The Trustee(s) of the Qualified Terminable Interest Trust are bereby authorized, in the Trustee(s) sole discretion, to detennine whether to elect (under Section 2056(b)(7) of the Internal Revenue Code) to qualify all or a specific portion of the Qualified Terminable. Interest Trust created herein for the federal estate tax marital deduction. The Trustee(s) of the Qualified Terminable Interest Trust, in exercising such REVOCABLE LIVING TRUST AGREEMENT Page 8 !'~. discretion, shall attempt to minimize, or eliminate if possible, the federal estate tax payable by the estate ~ of the decedent spouse's estate. , However, if the Trustee(s) of the Qualified Terminable Interest Trust determine that it is in the best interest of the persons who may receive any assets after the decedent spouse's death and after the surviving Grantor's death to pay some federal estate tax in the decedent spouse's estate, taking into consideration any other tax that is to be paid because of the decedent spouse's death and the surviving Grantor's death, and any income tax liability that may be affected by the election, the Trustee(s) of the Qualified Terminable Interest Trust may elect to take a marital deduction that does not reduce the tax to zero if the payment of the tax will not jeopardize the ability of thie Qualified Terminable Interest Trust to provide the surviving spouse with the level of support and maint(fnance contemplated by this Declaration of Trust. The decision of the Qualified Terminable Interest Trustee(s) to make this election shall be final and binding on all persons. The Trustee(s) of the Qualified Terminable Interest Trust is (are) authorized and empowered to invest, reinvest, transfer, and convey any and all property held in this Qualified Terminable Interest TlUst. This includes all power now or hereafter conferred upon Trustees by applicable state law, and also those powers appropriate to the orderly and effective administration of the Trust. The Trustee(s) shall make a written accounting to the surviving Grantor at least annually and shall make a written accounting to all remainder Beneficiaries at the time that all assets of this Qualified Terminable Interest Trust are distributed. Section 3.06 - Power to Appoint Agents The surviving spouse shall have the right to retain an accountant and I or an attorney at law for professional services on behalf of the Trust Estate or Estates herein. The surviving spouse shall not be responsible for the acts of such agents beyond his or her obligation to use reasonable care in the selection of such agents. Section 3.07 - Maximum Marital Deduction Except as otherwise expressly stated herein, the term "Maximum Marital Deduction" shall not be construed as a direction by the deceased Settlor to exercise any election respecting the deduction of Estate administration expenses, the determination of the Estate tax valuation date, or any other tax election which may be available under any tax laws, only in such manner ~s will result in a larger allowable Estate tax marital deduction than if the contrary election had been made", Section 3.08 - Trust Income After The First Death Following the death of either Settlor and until the death of the surviving Settlor, the Trustee shall, at least annually, pay to or apply for the benefit of the surviving Settlor all of the net income from the Trust Estate, Section 3.09 - Simultaneous Death If the Settlors should die under circumstances which would render it doubtful as to which Settlor died first, it shall be conclusively presumed for the purposes of this Trust that Clair E. Manges died first. If any other Beneficiary and a Settlor should die under such circumstances, it shall be conclusively presumed that the Beneficiary predeceased such Settlor. REVOCABLE LIVING TRUST AGREEMENT Page 9 Section 3.10 - Last Expenses Upon the death of each of the Settlors, the Trustee of this Trust may, in its discretion, pay any part of or all of the funeral and burial expenses, probate claims, administration expenses, and any estate, inheritance, succession, or other death taxes, which are payable, as a result of the death of each of the Settlors, out of that portion of the Trust Estate constituting the deceased Settlor's separate Trust Share. The Trustee may make any such payments directly to the creditors or taxing authority in question, or may remit funds to the personal representative of the Estate of the deceased spouse for such payments. ARTICLE FOUR Adlllillistrationldistribution of Survlvor's Trust Section 4.01 - Common Pot Trust At the death of the Surviving Settlor, the Trustee shall not create a Common Pot Trust. All of the Trust Estate that has not been distributed under prior Articles of the Trust Agreement shall be held, administered, divided, and distributed according to the provision~ that follow. Section 4.02 - Second Death On the death of the last Settlor to die (the "Surviving Settlor"), the Trustee shall distribute the principal of the Trust and any accrued or undistributed income from the principal of the Trust in such a manner and to such persons, including the Estate or the Creditors, as directed in this Trust Agreement. Section 4.03 - Payment of The Second Death Expenses On the death of the Surviving Settlor, the Trustee shall pay' from that portion of the Trust Estate constituting the deceased Settlor's separate Trust Share the expenses of the surviving Settlor's last illness, funeral, burial, and any inheritance, estate, or death taxes that may be due by reason of the Surviving Settlor's death, unless the Trustee in his or her absolute. discretion determines that other adequate provisions have been made for the payment of such expenses and taxes. Section 4.04 - Trust Income and Principal Distribution Upon The Death of The Surviving Trustor 1. The Trustee shall apply and distribute the net income and principal of each of the shares of the resulting Trust Estate, after giving effect to the section df this Trust Agreement entitled "Special Directives" to the following Beneficiaries in the indicated fractional shares: Clair E. Manges, Jr. Michael S. Mallges Paula J. Taylor Brai" L Mallges C/Zristine M. Jollnso" 1/5 1/5 1/5 1/5 1/5 2. If any of the above Beneficiaries, or any other Beneficiary, is under the age of 21 years when the distribution is to be made, the Trustee shall have authority to distribute the same, in whole or in part, to a custodian for the minor appointed under a Uniform Gifts or Transfers to Minors Act, or the Trustee may retain any such property and administer'and distribute the same for the benefit of the minor, paying to or for the benefit of such minor so much of the income and principal of the retained property from time to time as the Trustee deems advisable for the health, education, support, and maintenance of the minor. When the person for whom the property is held attains REVOCABLE LIVING TRUST AGREEMENT Page 10 ~. the age of 21 years, the property shall thereupon be distributed to him or her free of trust unless otherwise stated in this Agreement. If the minor should die before attaining the age of majority, the property shall then be paid and distributed to the estate of the minor. 3. Ifall of the Settlor's Beneficiaries and their children should fail to survive the final distribution of the Trust Estate, all of the Trust Estate not disposed of as hereinabove provided shall be distributed as provided for in this Trust Agreement. Section 4.05 - Principle of Representation Unless indicated differently in this Trust Agreement or in the "Special Directives" section that follows, in the event any of the named Beneficiaries should predecease both Settlors, all of that person's share of the Trust Estate is to be divided equally among the deceased Beneficiary's children or issue per stirpes. In the event the predeceased Beneficiary leaves no surviving children or issue, then all of that person's share of the Trust Estate shall be divided equally among the remaining Beneficiaries per stirpes. If a Beneficiary of the Settlors survives both Settlors, but should fail to survive to collect his or her share at distribution, that share shall pass to the surviving issue ofthat deceased Beneficiary per stirpes and with right of representation. ARTICLE FIVE Trustee Powers & Provisio1ls Section 5.01 - Non-Income Producing Property During the joint lives of the Settlors, the Trustee is authorized to retain in the Trust, for so long as the Trustee may deem advisable, any property received by the Trustee from the Settlors, whether or not such property is ofthe character permitted by law for the investment of Trust funds. Section 5.02 - Trustee Powers The Trustee shall have all powers conferred upon a Trustee by law for the orderly administration of the Trust Estate. If any property is distributed outright under the provision of this Trust Agreement to a person who is a minor, distribution may be made under the Pennsylvania Uniform Transfer to Minors Act ("P AUTMA"). The Trustee is further authorized to sign, deliver, and/or receive any documents necessary to carry out the powers contained within this Section. The Trustee of any trust created under this Trust Agreement (including any substitute or successor Trustee) will have and be subject to all of the powers, duties, and responsibilities granted or imposed by the Pennsylvania Consolidated Statutes (20 Pa. C.S. Section 101 et seq.) as such Statute may provide at the time of administration of the Trust, except to the extent that the same are inconsistent with the provisions of this Agreement.' Section 5.03 - Specific Powers of Trustee In addition, the Trustee will have the following specific powers: ! 1. Trust Estate: The Trustee may leave invested any property coming into its hands hereunder in any form of investment even though the investment may not be of the character of investments permitted by law to trustees, without liability for loss or!depreciation in value. The Trustee may sell, mortgage, exchange, or otherwise dispose of and re~nvest property which may at any time be REVOCABLE LIVING TRUST AGREEMENT Page II ..,. a part of the Trust Estate upon such terms and conditio;ns as the Trustee may deem advisable. The Trustee may invest and reinvest the Trust Assets from time to time in any property, real, personal, or mixed, including without limitation, securities of domestic and foreign corporations and investment trusts or companies, bonds, debentures, preferred stocks, common stocks, mortgages, mortgage participation, and interests in cQmmon trust funds, all with complete discretion to convert realty into personalty or personalty into realty or otherwise change the character of the Trust Estate, even though such investment (by reason of its character, amount, proportion to the total Trust Estate, or otherwise) would not be considered appropdate for a fiduciary apart from this provision and even though such investment caused part or all of the total Trust Estate to be invested in investments of one typeor of one business or company. 2. Holding Property: The Trustee may hold property in the Trustee's name, as trustee, or in the name of a nominee without disclosing the Trust. 3. Release of Power: If the Trustee deems it to be in the best interest of the Trust and its Beneficiaries, the Trustee, by written instrument signed by such Trustee, will have the power and authority to release, disclaim, or restrict the scope of any power or discretion granted in this Trust Agreement or implied by law. 4. Agents, Employees: The Trustee may employ one or more agents to perfonn ally act of administration, whether or not discretionary, including attorneys, auditors, investment managers, or others, as the Trustee shall deem necessary or advisable. The Trustee may compensate agents and other employees and may delegate to them any and an discretions and powers. I 5. Leases: The Trustee may lease any Trust Assets generally or for oil, gas, and mineral development, even though the lease term may extend be%nd the term of the Trust of which the property is a part. The Trustee may enter into any covenants and agreements relating to the property so leased or concerning any improvements which may then or thereafter be erected on such property. 6. Common Funds: The Trustee may hold any of the Trusti Assets in a common fund with property from other trust estates and may make investments jointly with any other trust, the property of which is included in the common fund. 7. Securities: With respect to securities held in the Trust Estate, the Trustee may exercise all the rights, powers, and privileges of an owner, including but not limited to, the power to vote, give proxies, and to pay assessments and other sums deepled by the Trustee necessary for the protection of the Trust Estate. In addition, the TTl\stee may participate in voting trusts, foreclosures, reorganizations, consolidations, mergers, and liquidations, and in connection therewith, to deposit securities with and transfer title to any protective or other committee under such terms as the Trustee may deem advisable. In addition, the Trustee may exercise or sell stock subscription or conversion rights and may accept and retain as an investment any securities or other property received through the exercise of any of the foregoing powers, regardless of any limitations elsewhere in this instrument relative to investments by the Trustee. In addition, The Trustee may Buy, sell exchange, assign, convey, settle and exercise commodities future contracts and call and put options on stocks and stock indices traded on a regulated options exchange and collect and receipt for all proceeds of any such transactions. Establish or continue option accounts for the principal with any securities of a futures broker. In general, exercise all powers with respect to commodity and option transactions that the principal could if present. 8. Purchases from Estate: The Trustee may purchase property of any kind from the Executor or Administrator of our Estates. REVOCABLE LIVING TRUST A(~REEMENT Page 12 9. Lending: The Trustee may make loans, secured or unsecured, to the Executor or Administrator of our Estates, to any Beneficiary of the Trust, or to the Trustee. Further, the Trustee may use Trust Assets to guarantee obligations of any income Beneficiary of the Trust (unless such Beneficiary is serving as Trustee). 10. Distributions to or for Beneficiaries: The Trustee may make any distribution contemplated by this Trust Agreement (1) to the Beneficiary; (2) if the Bei.neficiary is under a legal disability or if the Trustee detennines that the Beneficiary is unable to properly manage his or her affairs, to a person furnishing support, maintenance, or education for the Beneficiary or with whom the Beneficiary is residing for expenditures on the Beneficiary's behalf; or (3) if the Beneficiary is a minor, to a trustee of an existing trust established exclusively for the benefit of such minor, whether created by this Trust Agreement or otherwise, ~r to a custodian for the Beneficiary, as selected by the Trustee, under the Pennsylvania Uniform; Transfer to Minors Act. Alternatively, the Trustee may apply all or a part of the distributi~ for the Beneficiary's benefit. Any distribution under this paragraph will be a full discharge' of the Trustee with respect thereto. On any partial or final distribution of the Trust Assets, the Trustee may apportion and allocate the assets of the Trust Estate in cash or in kind, or partly in cash and partly in kind, or in undivided interests in the manner deemed advisable at the discretion of the Trustee and to sell any property deemed necessary by the Trustee to make the distributiol1. The Trustee may distribute gifts of up to the maximum allowable per year per donee out of principal and/or interest. . ! 11. Insurance: The Trustee may purchase new life insurahce, pay the premiums on existing life insurance on the life of any Trust Beneficiary, purchase annuities (either commercial or private) from any corporation, trust, or individual, and may procure and pay the premiums on other insurance of the kinds, forms, and amounts deemed advisable by the Trustee to protect the Trustee and the Trust Estate. 12. Borrowing: The Trustee may borrow money from the Trust Estate and others. To secure the repayment thereof, the Trustee may mortgage, pledge, or otherwise encumber part or all of the Trust Assets, and in connection with the acquisition of any property, the Trustee may assume a liability or may acquire property subject to a liability. 13. Repairs: The Trustee may make ordinary and extraordFnary repairs and alterations to buildings or other Trust Assets. 14. Reserves: The Trustee may establish such reserves out of income for taxes, assessments, repair, and maintenance as the Trustee considers appropriate. i 15. Continuation of Business: The Trustee may continue any business or businesses in which the Trust has an interest at the time of the Settlors' death for so long as the Trustee may, in its sole discretion, consider necessary or desirable, whether oi not the business is conducted by the Settlors at the time of their death individually, as a partn~rship, or as a corporation wholly owned or controlled by them, with full authority to sell, settle, and discontinue any of them when and upon such terms and conditions as the Trustee may, in its sole discretion, consider necessary or desirable. I ] 6. Retain Property for Personal Use: The Trustee may retain a residence or other property for the personal use of a Beneficiary and allow a Beneficiary to: use or occupy the retained property free of rent and maintenance expenses. J REVOCABLE LIVING TRUST AGREEMENT Page 13 17. Dealings with Third Parties: The Trustee may deal \Yith any person or entity regardless of relationship or identity of any Trustee to or with that peflSon or entity. The Trustee may hold or invest any part of or all of the Trust Estate in common or undivided interests with that person or entity. 18. Partitions, Divisions, Distributions: The Trustee will have the power to make all partitions, divisions, and distributions contemplated by this Trust Agreement. Any partitions, divisions, or other distributions may be made in cash, in kind, or partly in cash and partly in kind, in any manner that the Trustee deems appropriate (including composing shares differently). The Trustee may determine the value of any property, which valuation will be binding on all Beneficiaries. No adjustments are required to compensate for any partitions, divisions, or distributions having unequal consequences to the Beneficiaries. 19. Claims, Controversies: The Trustee may maintain and defend any claim or controversy by or against the Trust without the joinder or consent of any Beneficiary. The Trustee may commence or defend at the expense of the Trust any litigation with r~spect to the Trust or any property of the Trust Estate as the Trustee may deem advisable. The Trustee may employ, for reasonable compensation, such counsel as the Trustee shall deem ad~isable for that purpose. 20. Merger of Trusts: If at any time the Trustee of any trust created hereunder shall also be acting as trustee of any other trust created by trust instrument or ~ trust declaration for the benefit of the same beneficiary or beneficiaries and upon substantiaHy the same terms and conditions, the Trustee is authorized and empowered, if in the Trustetj's discretion such action is in the best interest of the Beneficiary or Beneficiaries, to transfer an9 merge all of the assets then held under such trust created pursuant to this Trust Agreement to anp with such other trust and thereupon to terminate the trust created pursuant to this Trust Agreement. The Trustee is further authorized to accept the assets of any other trust which may be transferred to any trust created hereunder and to administer and distribute such assets and properties so transferred in accordance with the provisions of this Agreement. 2]. Termination of Small Trust: Any corporate Trustee which is serving as the sole Truslee of any Trust or any Share thereof may at any time terminate such Trust or Share if, in the Trustee's sole judgment, the continued management of such Trust or Share is no longer economical because of the small size of such Trust or Share and if such action will be deemed to be in the best interests of the Beneficiary or Beneficiaries. In case of such termination, the Trustee will distribute forthwith the share of the Trust Estate so terminated to the income Beneficiary, per stirpes. Upon such distribution, such Trust or Share will terminate and the Trustee will not be liable or responsible to any person or persons whomsoever for its ~ction. The Trustee will not be liable for failing or refusing at any time to terminate any Trust or a Share thereof as authorized by this paragraph. 22. Power to Determine Income and Principal: Dividends payable in stock of the issuing corporation, stock splits, and capital gains will be treated as principal. Except as herein otherwise specifically provided, the Trustee will have full power and authority to determine the manner in which expenses are to be borne and in which receipts are to be credited as between principal and income. The Trustee has the power to determine what!,will constitute principal or income and may withhold from income such reserves for depreciation or depletion as the Trustee may deem fair and equitable. In determining such matters, the ,Trustee may give consideration to the provisions of the Pennsylvania Statutes (or its successor; statutes) relating to such matters, but it will not be bound by such provisions. REVOCABLE LIVING TRUST AGREEMENT Page 14 ,:-~;~~.', 23. Generation-Skipping Taxes and Payment: If tbe Trustee considers any distribution or termination of an interest or power hereunder as a distribution or termination subject to a generation-skipping tax, the Trustee is authorized: 24. To augment any taxable distribution by an amount which the Trustee estimates to be sufficient to pay such tax and charge the same to the particular &ust to which the tax rclated without adjustment of the relative interests of the Beneficiaries; a. To pay such tax, in the case of a taxable termination, from the particular trust to which the tax relates without adjustment of the relative interests of the Beneficiaries. If such tax is imposed in part by reason of the Trust Assets, the Trustee will pay only the portion of such tax attributable to the taxable termination hereunder taking into consideration deductions, exemptions, credits, and other factors which the Trustee deems advisable; and b. To postpone final termination of any particular trust and to withhold any portion or all of the Trust Estate until the Trustee is satisfied that the Trustee no longer has any habiJity to pay any generation-skipping tax with reference to such trust or its termination. Section 5.04 - Special Provision for S Corporation Stock Notwithstanding what is otherwise provided in this Trust Agreement, if at any time the Trust contains any stock of a corporation which elects or has elected treatment as an "s Corporation" as defined by Section 1361(a)(1) of the Internal Revenue Code (or any corresponding successor statute), such stock will be segregated from the other assets of such and treated as a separate trust. The Trustee will further divide the separate trust into shares for each Beneficiary and such shares w~ll be distributed outright or held in trust as herein provided. In addition, all other provisions of this Trust Agreement will apply to each share held in trust (and constituting a separate trust) except that the Truste,e will distribute all of the income from each separate trust to its Beneficiary in convenient installments at least annually. It is the Settlors' intent that each separate trust will be recognized as a "Qualified Subchapter S Trust" ("QSST") und(~r Section 1361 (d)(2) of the Internal Revenue Code (or any corresponding ~uccessor statute). Notwithstanding any provisions of this Trust Agreement to the contrary, the Trustee's powers and discretions with respect to the administration of each separate trust (including methods of accounting, bookkeeping, making distributions, and characterizing receipts and expenses) will not~be exercised or exercisable except in a manner consistent with allowing each separate trust to be treated as a QSST as above described. ARTICLE SIX Trllstee Powers witll a Probate Estate Section 6.01 - Coordination with Settlor's Probate Estate 1. At any time during the continuance of this Trust, including subsequent to the death of either Settlor, the Trustees may, in their sole and uncontrolled discretion, distribute to the deceased Settlor's Probate Estate cash and I or other property as a Beneficiary of the Trust. 2. All other provisions to the contrary notwithstanding, under no circumstances shall any restricted proceeds, as hereinafter defined, be either directly or indirectly: (i) distributed to or for the benefit of the Settlor's Executors or the Settlor's Probate Estate; or (ii) used to pay any other obligations ofthe Settlor's Estate. The term "Restricted Proceeds" qleans: REVOCABLE LIVING TRUST AGREEMENT Page 15 '"..-_". I a. All qualified plans, individual retirement accounts, or similar benefits which arc received or receivable by any Trustee hereunder, and which are paid solely to a Beneficiary other than the Executor of the Settlor's Gross Estate for Federal Estate Tax purposes; and b. All proceeds of insurance on the Settlor's life which, if paid to a Beneficiary other than the Settlor's Estate, would be exempt from inheritance or similar death taxes under applicable state death laws. Section 6.02 - Direction to Minimize Taxes In the administration of the Trust hereunder, its Fiduciaries shall exercise all available tax related elections, options, and choices in such a manner as they, in. their sole but reasonable judgment (where appropriate, receiving advice of tax counsel), believe will achiev~ the overall minimum in total combined present and reasonably anticipated future administrative expenses and taxes of all kinds. This applies not only to said Trust, but also to its Beneficiaries, to the other Trusljs hereunder and their Beneficiaries, and to the Settlor's Probate Estate. ' 1 Without limitation on the generality of the foregoing direction (which shall to that extent supercede the usual fiduciary duty of impartiality), such Fiduciaries shall not be accountable to any person interested in this Trust or to Settlor's Estate for the manner in which they shall carry out this direction to minimize overall taxes and expenses (including any decision they may make not to incur the expense of a detailed analysis of alternative choices). Even though their decisions in this regard may result in increased taxes or decreased distributions to the Trust, to the Estate, or to one or more Beneficiaries, the Fiduciaries shall not be obligated for compensation readjustments or reimbursements which arise by reason of the manner in which the Fiduciaries carry out this direction. Section 6.03 - Judgment and Discretion of Trustee In the absence of proof of bad faith, all questions of construction or interpretation of any trusts created by this Trust Agreement will be finally and conclusively determined solely by the Trustee, according to the Trustee's best judgment and without recourse to any court. Each determination by the Trustee is binding on the Beneficiaries and prospective Beneficiaries hereunder, both in being and unborn, as well as all other persons, finns, or corporations. The Trustee, when exercising any discretionary power relating to the distribution or accumulation of principal or income or to the termination of any trust, will be responsible only for lack of good faith in the exercise of such power. Each determination may be relied upon to the same extent as if it were a final and binding judicial ~etermination. In the event of a conflict between the provisions of this Trust Agreement and those of the Pennsylvania Statutes, the provisions of this Agreement will control. ARTICLE SEVEN j ResolutiOlI of Conflict: Section 7.01 - Resolution of Conflict Any controversy between the Trustee or Trustees and any other Trustee or Trustees, or between any other parties to this Trust, including Beneficiaries, involving the construction or application of any of the telIDS, provisions, or conditions of this Trust shall, on the written request of either or any disagreeing party served on the other or others, shall be submitted to arbitration. ;rhe parties to such arbitration shall each appoint one person to hear and determine the dispute and, if they are unable to agree, then the two persons so chosen shall select a third impartial arbitrator whose decision shall be final and conclusive upon both parties. The cost of arbitration shall be borne by the losing party or in such proportion as the arb.itrator(s) REVOCABLE LIVING TRUST AGREEMENT Page 16 shall decide. Such arbitration shall comply with the commercial arbitration rules of the American Arbitration Association, 140 West 51st Street, New York, NY 10200. Section 7.02 - Incontestability The beneficial provisions of this Trust Agreement are intended to be in lieu of any other rights, claims, or interests of whatsoever nature, whether statutory or otherwise, e,xcept bona fide pre-death debts, which any Beneficiary hereunder may have in Settlor's Estate or in the properties in trust hereunder. Accordingly, if any Beneficiary hereunder asserts any claim (except a legally enforceable debt), statutory election, or other right or interest against or in Settlor's Estate, or any properties of this Trust, other than pursuant to the express terms hereof, or directly or indirectly contests, disputes, or calls il1to question, before any court, the validity of this Trust Agreement, then: 1. Such Beneficiary shall thereby absolutely Jorfeit any and all beneficial interests of whatsoever kind and nature which such Beneficiary or his or her heits might otherwise have under this Trust Agreement and the interests of the other Beneficiaries hereunder shall thereupon be appropriately and proportionately increased; and I 2. All of the provisions of this Trust Agreement, to the extent that they confer any benefits, powers, or rights whatsoever upon such claiming, electing, or contesting Beneficiary, shall thereupon become absolutely void; and 3. Such claiming, electing, or contesting Beneficiary, if then acting as a trustee hereunder, shall automatically cease to be a Trustee and shall thereafter be ineligible either to select, remove, or become a Trustee hereunder. Section 7.03 - Trust Contests and Specific Omissions If any beneficiary under this trust, singly or in conjunction with:any other person or persons, directly or indirectly: 1. contests in any court the validity of this trust or, in any manner, attacks or seeks to impair or invalidate any of its provisions; 2. contests in any court the validity of the Settlor's Trust or, in any manner, attacks or seeks to impair or invalidate any of its provisions; 3. seeks to obtain an adjudication in any proceeding in any court that this trust or any of its provisions or that Settlor's Trust or any of its provisions is void; 4. claims entitlement by way of any written or oral contract to any portion of the Settlor's estate, whether in probate or under this instrument; 5. unsuccessfully challenges the appointment of any person named as Trustee or successor Trustee of this Trust, 6. objects in any manner to any action taken or proposed 'to be taken in good faith by the Trustee Settlor's Trust; 7. objects to any construction or interpretation of this Trust, or any provision of it, that is adopted or is proposed in good faith by the Trustee; , 8. unsuccessfully seeks the removal of any person acting as Trustee of any Trust created under this instrument; , 9. files any creditor's claim in Settlor's estate (without regard to its validity), whether the claim arose before or after the date of this instrument, but excepting claims for cash advanced or paid for expenses of the Settlor's last illness or funeral paid by said claimant; , I REVOCABLE LIVING TRUST AGREEMENT Page 17 10. attacks or seeks to invalidate any designation of benefioiaries for any life insurance policy on Settlor's life; 11. attacks or seeks to invalidate any designation of benefidaries for any pension or IRA or other form of qualified or non-qualified asset or deferred. compensation account, agreement or arrangement; 12. attacks or seeks to invalidate any trust which Settlor ha~ created or may create during Settlor's lifetime, or any provision thereof, as well as any gift whith Settlor has made or will made during Settlor's lifetime, whether before or after the date of this ipstrument; 13. attacks or seeks to invalidate any transaction by which Settlor sold any assets (whether to a relative of Settlor's or otherwise); or 14. refuses a request of Settlor's Trustee, Executor or other fiduciary to assist in the defense against any of the foregoing acts or proceedings, then that person's right to take any interest given to him or her 'by this trust shall be determined as it would have been detennined if the person had predeceased the execution of this trust instrument without issue surviving. The provisions of the foregoing paragraph shall not apply to any 'disclaimer by any person of any benefit under this trust or under the Settlor's Trust. In the event that any provision of this Article is held to be invalid, void or megal, the same shall be deemed severable from the remainder of the provisions of this Article and shall in no way affect, impair or invalidate any other provision in this Article; and if such provision shall be deemed invalid due to its scope or breadth, such provision shall be deemed to exist to the extent of the scope or breadth permitted by law. Section 7.04 - Benefits Confidential The Settlors further declare that it is their desire and intent that the provisions of this Trust Agreement are to remain confidential as to all parties. The Settlors direct that only the information concerning the benefits paid to any particular Beneficiary shall be revealed to suah individual and that no individual shall have a right to information concerning the benefits being paid to any other Beneficiary. ARTICLE EIGHT Gelleral Provisiolls Section 8.01 - Distribution in Kind or in Cash On any division of the assets of the Trust Estate into shares or partial shares, and on any final or partial distribution of the assets of the Trust Estate, the Trustee, at his or her absolute discretion, may divide and distribute undivided interests of such assets on a pro rata or non-pro rata basis, or may sell any part of or all of such assets and may make divisions or distributions in cash or partly in cash and partly in kind. The decision of the Trustee, either prior to or on any division or distribution of such assets, as to what constitutes a proper division of such assets of the Trust Estate, shall be binding on all persons interested in any trust provided for in this Trust Agreement. REVOCABLE LIVING TRUST AGREEMENT Page 18 Section 8.02 - Spendthrift Provision Neither the principal nor the income of the trust shall be liable for the debts of a Beneficiary. Except as otherwise expressly provided in this Agreement, no Beneficiary of any trust shall have any right, power, or authority to alienate, encumber, or hypothecate his or her interest in the principal or income of this Trust in any manner, nor shall the interests of any Beneficiary be subject to the claims of his or her creditors or liable to attachment, execution, or other process o~ law. The limitations herein shall not restrict the exercise of any power of appointment or the right to disclaim. Section 8.03 - Definition of Children The terms "Child" and "Children" as used in this Agreement me~n the lawful issue of a Settlor or of the Settlors together. This definition also includes children legally ,adopted by a Settlor or by the Settlors together. Section 8.04 - Handicapped Beneficiaries Any Beneficiary who is detelmined by a court of competent jurisdiction to be incompetent shall not have any discretionary rights of a Beneficiary with respect to this Trost, or to their share or portion thereof. The Trustee shall hold and maintain such incompetent Beneficiaf'j' s share of the Trust estate and shall, in the Trustee's sole discretion, provide for such Beneficiary as tl'lat Trustee would provide for a minor. Notwithstanding the foregoing, any Beneficiary who is diagnosed for the purposes of governmental benefits (as hereinafter delineated) as being not competent or as being disabled, and who shall be entitled to governmental support and benefits by reason of such incompetency or disability, shall cease to be a Beneficiary of this Trust. Likewise, they shall cease to be a Beneficiary if any share or portion of the principal or income of the Trust shaH become subject to the claims of any governmental agency for costs or benefits, fees, or charges. The portion of the Trust Estate which, absent the provisions of this section, would have been the share of such incompetent or handicapped person shall be retained in trust for as long as that individual lives. The Trustee, at his or her sole discretion, shall utilize such funds for the maintenance of that individual. If such individual recovers from his or her incompetency or disability and is no longer eligible for aid from any governmental agency, including costs or benefits, fees, or charges, such individual shall be reinstated as a Beneficiary after 60 days from such recovery and the allocation and distribution provisions as stated herein shall apply to that portion of the Trust Estate which is held by the Trustee subject to the foregoing provisions of this section. If said handicapped Beneficiary is no longer living and shall leave children then living, the deceased child's share shall pass to those children per stirpes. If there are no children, the share shall be allocated proportionately among the remaining Beneficiaries. REVOCABLE LIVING TRUST AGREEMENT Page 19 ARTICLE NINE Successor Trustee Appointments Section 9.01 - Trustees All Trustees are to serve without bond. The following will act as Trustees of any Trusts created by this Tru~t Agreement, in the following order of succession: ' First: The undersigned, Clair E. Manges and /;or Georgie Am' MQI.ges. Second: The Surviving Spouse. Third: At the death or incapacity of the Surviving Spouse, Clair E. MQI.ges, Jr. shall serve as First Successor Trustee. Fourth: Michael S. Manges shall serve as Second Successor Trustee. Last: A Trustee chosen by the majority of Beneficiaries, with a parent or legal guardian voting for minor Beneficiaries; provided, however, that the children of any deceased Beneficiary shall collectively have only one vote. I Section 9.02 - Allocation and Distribution of The Trust Assets The Trustees shall allocate, hold, administer, and distribute the Trust Assets as hereinafter provided: 1. Upon the death of the first Settlor, the Trustee shall make any separate distributions that have been specified by the deceased Settlor. The Trustee shall also take into consideration the appropriate provisions of this Article. 2. Upon the death of the Surviving Spouse, the Trustee shall hold, administer, and distribute the Trust Assets in the manner hereinafter prescribed. Section 9.03 - Personal Property Distribution Notwithstanding any provision of this Trust Agreement to the contrary, the Trustee must abide by any memorandum by the Settlors, particularly that contained in the section entitled "Special Directives" incorporated into this Trust Instrument, directing the disposition of Trust Assets of every kind including, but not limited to, furniture, appliances, furnishings, pictures, china, silverware, glass, books, jewelry, wearing apparel, and all policies of fire, burglary, property damage, and other insurance on or in connection with the use of property. Otherwise, any personal and household effects of the Settlors shall be distributed with the remaining assets of the Trust Estate. REVOCABLE LIVING TRUST AGREEMENT Page 20 Section 9.04 - Liability of Trustee The Trustee will not be responsible or liable for any loss which may occur by reason of depreciation in value of the properties at any time belonging to the Trust Estate nor for any other loss which may occur, except that the Trustee will be liable for each Trustee's own negligence, neglect, default, or willful wrong. The Trustee will not be liable or responsible for the acts, omissions, or defaults of any agent or other person to whom duties may be properly delegated hereunder (except officers or regular employees of the Trustee) if such agent or person was appointed with due care. T~e Trustee may receive reimbursement from the Trust Estate for any liability, whether in contract or in tort, incurred in the administration of the Trust Estate in accordance with the provisions hereof, and the Trustee may contract in such fonn that such Trustee will be exempt from such personal liability and that such liability will be limited to the Trust Assets. Section 9.05 - Successor Trustees Any Successor Trustee shall have all the power, rights, discretion, and obligations conferred on u Trustee by this Trust Agreement. All rights, titles, and interest in the prop.erty of the Trust shall immediately vest in the successor Trustee at the time of appointment. The prior Trustee shall, without warranty, transfer to the Successor Trustee the existing Trust property. No Successor Trustee shall be under any duty to examine, verify, question, or audit the books, records, accounts, or transaction of any preceding Trustee; and no Successor Trustee shall be liable for any loss or expense from or occasioned by anything done or neglected to be done by any predecessor Trustee. A Successor Trustee shall be liable only for his or her oWn acts and defaults. ARTICLE TEN Rule Against Perpetuities Section 10.01 - Perpetuities Savings Clause Notwithstanding any other provision of this instrument, the Trusts created hereunder shall terminate not later than twenty-one (21) years after the death of the last s,urvivor of all Settlors and any other Beneficiary or Beneficiaries named or defined in this Trust living on the date of the death of the first Settlor to die. The Trustee shall distribute remaining Trust princtpal and all accrued or undistributed net income hereunder to the Beneficiary or Beneficiaries. If there is more than one Beneficiary, the distribution shall be in the proportion in which they are Beneficiaries; ifno proportion is designated, then the distribution shall be in equal shares to such Beneficiaries. . ARTICLE ELEVEN General Provisions Section 11.01 - Governing Law It is not intended that the laws of only one particular state shall n~cessarily govern all questions pertaining to all of the Trust hereunder. . 1. The validity of the Trust hereunder, as well as the validity of the particuJarprovisions of that Trust, shall be governed by the laws of the state which has sufficient connection with the Trust to support such validity. ' REVOCABLE LIVING TRUST AGREEMENT Page 21 2. The meaning and effect of the terms of this Trust Agreement shall be governed by the laws of the Commonwealth of Pennsylvania.: 3. The administration of this Trust shall be governed by the laws of the state in which the principle office ofthe Trustee then having custody of the Trust's principal assets and records is located. The foregoing shall apply even though the situs of some Trust Assets or the home of the Settlor, a Trustee, or a Beneficiary may at some time or times be elsewhere. Section 11.02 - Invalidity of Any Provision If a court finds that any provision of this Trust Agreement is void, invalid, or unenforceable, the remaining provisions of this Agreement will continue to be fully effective. I l Section 11.03 - Headings ! The use of headings in connection with the various articles and sections of this Trust Agreement is solely for convenience and the headings are to be given no meaning or significance whatsoever in construing the terms and provisions of this Agreement. i Section 11.04 - Internal Revenue Code Terminology As used herein, the words "Gross Estate," "Adjusted Gross Estat<r," "Taxable Estate," "Unified Credit," "State Death Tax Credit," "Maximum Marital Deduction," "Marital Deduction," and any other word or words which from the context in which it or they are used refer to the Internal Revenue Code shall be assigned the same meaning as words have for the purposes of applying the Internal Revenue Code to a deceased Settlor's Estate. Reference to sections of the Internal Revenue Code and to the Internal Revenue Code shall refer to the Internal Revenue Code amended to the date of such Settlor's death. REVOCABLE LIVING TRUST AGREEMENT Page 22 SPECIAL DIRECTIVES) \ OF CLAIR E. MANGES I, CLAIR E. MANGES a resident of the County of Cumberland, Commonwealth of Pennsylvania, being of lawful age, and of sound and disposing mind and memory, and not acting under duress, fraud, or undue inHuence, hereby make, publish and declare this to be my Special Directive, and I incorporate THE CLAIR E. MANGES AND GEORGIE ANN MANGES REVOCABLE LIVING TRUST AGREEMENT. FIRST The natural objects of my affection are: I. My Wife - Georgie Am' Manges 2. My Children - Clair E. Manges, Jr. Michael S. Manges Paula J. Taylor . Brain L. Manges Christine M. Johnson SECOND I direct that all estate and inheritance taxes payable as a result of my death, not limited to taxes assessed on property, shall be paid out of the residue of my Estate, and shall not be deducted or collected from any League, Devisee, or Beneficiary hereunder. THIRD In the event any of my named Beneficiaries should predecease me, all of that person's share of the Trust Estate shall be divided equally among that person's issue per stirpes. In the event any such predeceased Beneficiary leaves no surviving children or issue,then all of that person's share shall be distributed to the remaining Beneficiaries in equal shares. FOURTH In the event all of my named Beneficiaries and their children and issue predecease me, all of the Trust Estate shall be distributed to my heirs at law. FIFTH I direct that all outstanding debts and/or loans owed by any Beneficiary shall be forgiven and deemed as having not existed. REVOCABLE LIVING TRUST AGREEMENT Page 23 SIXTH I direct that VICTOR K. T AYLOR shall be specifically excluded from receiving any portion of this Trust Estate. SEVENTH I direct that, before any distribution of the assets of the Trust Estate to the named Beneficiaries, certain specific distributions, if any, shall be made from the assets as set forth on the list attached hereto and marked "Exhibit A." EIGHTH I hereby acknowledge and accept the "Special Directives," if any, of my spouse. REVOCABLE LIVING TRUST AGREEMENT Page 24 SPECIAL DIRECTIVES OF GEORGIE ANN MANGES I, GEORGIE ANN MANGES, a resident of the County of Cumberland, Commonwealth of Pennsylvania, being of lawful age, and of sound and disposing mind and memory, and not acting under duress, fraud, or undue influence, hereby make, publish and declare this to be my Special Directive, and I incorporate THE CLAIR E. MANGES AND GEORGIE ANN MANGES REVOCABLE LIVING TRUST AGREEMENT. FIRST The natural objects of my affection are: I. My Husband - Clair E. Manges 2. My Children - Clair E. Manges, Jr. Michael S. Manges Paula J. Taylor Brai" L. Manges C/lristine M. Jo/mson SECOND I direct that all estate and inheritance taxes payable as a result of my death, not limited to taxes assessed on property, shall be paid out of the residue of my Estate, and shall not be deducted or collected from any League, Devisee, or Beneficiary hereunder. : THIRD In the event any of my named Beneficiaries should predecease me, all of that person's share of the Trust Estate shall be divided equally among that person's issue per stirpes. In the event any such predeceased Beneficiary leaves no surviving children or issue, then all of that person's share shall be distributed to the remaining Beneficiaries in equal shares. FOURTH In the event all of my named Beneficiaries and their children and issue predecease me, all of the Trust Estate shall be distributed to my heirs at law. FIFTH I direct that all outstanding debts and/or loans owed by any Beneficiary shall be forgiven and deemed as having not existed. REVOCABLE LIVING TRUST AGREEMENT Page 25 SIXTH I direct that VICTOR K. TAYLOR shall be specifically excluded from receiving any portion of this Trust Estate. SEVENTH I direct that, before any distribution of the assets of the trust Estate to the named Beneficiaries, certain specific distributions, if any, shall be made from the assets as set forth on the list attached hereto and marked "Exhibit A." EIGHTH I hereby acknowledge and accept the "Special Directives," if any, of my spouse. REVOCABLE LIVING TRUST AGREEMENT Page 26 DATED to be effective this 17 (/ day of d1 ,poz SETTLORS: ~~L V~~ CLAm E. MANGE J I ACCEPTED BY CO-TRUSTEES: ( /\l. D--~JL Ir '}--YCiVYt <\ f~ C ~uR-E. MANG ~ "'J J/ /~ COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND This instrument was acknowledged before me on the. date herein set forth by CLAIR E. MANGES as Settlor and Co-Trustee to certify which witness my hand and seal of office. NOTARIAL SEAL JEROME IlfWIS. NOTARV PUBLIC TRmVffRIN TWP.. CHESTER COUNTY MY COMMISSION EXPIRES SEPT. 25 2006 COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND This instrument was acknowledged before me on the date' herein set forth by GEORGIE ANN MANGES as Settlor and Co-Trustee to certify which witness my hand and seal of office. NOTARIAL SEAL JEROME T. lEWIS. NOTARY PUBLIC TRErWFFRIN TWP., CHESTER COUNTY MY COMMISSION EXPIRES SEPT. 25 2006 REVOCABLE LIVING TRUST AGREEMENT Page 27 THE CLAIR E. MANGES AND GEORGI~ ANN MANGES REVOCABLE LIVING TRUST AGREEMENT Declaration of Intent ' The undersigned hereby declare that, as Trustee of THE CLAIR E. MANGES AND GEORGIE ANN MANGES REVOCABLE LIVING TRUST, they are acquiring and will hold in the name CLAIR E. MANGES and GEORGIE ANN MANGES, but without further reference to their fiduciary capacity, all items listed on the attached schedule(s) hereto and incorporated herein as amended, from time to time, as well as household furnishings, automobiles, jewelry, bank accounts, securities, bonds, clothing and other personal property of any kind in their name or in either of their names and henceforth such assets shall and will belong to said Trust and not to them individually; and they further declare that, except to the extent of interest provided to them under the temlS and provisions of said Trust, they have no personal interest in any of the above itemized personal properties, it being intended and this Declaration constitutes an affirmation of Trust ownership and an assignment to this Trust and shall be binding on their heirs, administrators, executors and assigns. ji 11 --day of S WHEREOF, the undersigned have executed this instrument this ~AA" c: ~'I. CI, 2---<l C E. MANGES ~ Settlorrrrustee COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND BEFORE ME, the undersigned authority, on this day personally appeared CLAIR E. MANGES and GEORGIE ANN MANGES, known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they executed the same for the purposes and consideration therein expressed and in the capacity thdn stated. SUBSCRIBED AND SWORN this /7 -- day of ~3 NOTARIAL SEAL lFROMf 1. lEWIS, NOTARY PUBLIC TREDYHRIN TWP..CHESTHi COUNTY }1.Ll!Q~Iv7ISS!QN EXPIRES Slpt 25 ~006 ~. ORRSfO~Nl/15/04 B~;~RY ACCOUNT ENCLOSURES CLAIR E MANGES GEORGIE ANN MANGES 80 CARPENTER LANE NEWBURG PA 17240-9219 CARRIAGE CLUB CHECK NO 873 874 875 876 --- CHECK SUMMARY AMOUNT REFERENCE 114.00 030130880 28.98 030102810 125.00 020035510 400.00 020089970 check numbers DATE 11/08 11 /12 11/10 11/09 * Denotes missing ******************************************************************************* Page 3 102000612 102000612 (Continued) DATE 11/08 11/15 11/15 11/15 CHECK NO 877 878 879 883* REFERENCE 070366810 030190970 050340480 050333120 AMOUNT 400.00 30.63 200.00 300.00 S A V I N G SAC C 0 U N T S ACCOUNT TITLE CLAIR E MANGES STATEMENT SAVINGS ACCOUNT NUMBER PREVIOUS BALANCE 1 DEPOSITS/CREDITS 1 CHECKS/DEBITS SERVICE CHARGE INTEREST PAID ENDING BALANCE 735442 6,767.54 1,763.00 370.00 .00 .00 8,160.54 o 11/15/04 29 8,128.26 8,128.26 3.22 0.50% 41. 73 Statement Dates 10/18/04 thru DAYS IN THE STATEMENT PERIOD AVERAGE l..EDGER AVERAGE COLLECTED Interest Earned Annual Percentage Yield Earned 2004 Int~rest Paid DATE DESCRIPTION REFERENCE AMOUNT BALANCE 10/20 SOC SEC US TREASURY 303 129573792 1,763.00 8,530.54 PPD 10/25 MON RT CON CN'1'RL PEN 160416722 370.00- 8,160.54 PPD A Member of American International Group, lnc. AIG ANNUITY INSURANCE COMPANY P.D Box 871 Amarillo, TX 79105-0871 AIG Annuity Insurance Company QUARTERLY GROWTH REPORT OF YOUR POLICY FOR THE QUARTER ENDING 12/31/2004 1-800-424-4990 iiiiiiiiiiiiii = iiiiiiiiiiiiiii - iiiiiiiiiiiiiii === ~ >15232 0548948 001 008129 CLAIR E MANGES C/O GEORGIE ANN MANGES 80 CARPENTER LANE NEWBURG, PA 17240 · Contn,ct Number · Policy.Date · Annuitant · Policy Type · Agent · COml)9sitc Annual Yield CF002357 09/ 111200 I Clair E Mange:; Individual Retiremenl Annuit) Franklin Life Insurancc Company iiiiiiiij;iiii !!!!!!!!!!!! iiiiiiiiiiiiiii 325tyo Important Messages As required by Tax Law, we will inform the Internal Revenue Service pfyour IRA's Accumulated Valuc. For access to ~'our account 24 hours a day, please ,.isit our wehsite at www.aigannuityacccss.com.(~; Beginning Value ) ntcrest Accumulatcd Value Current Qu~rter 10/01/2004 - 12/31/2004 21,279.25 172.2~ 21.451.49 Year - To - Date 01/01/2004 - 12/31/2004 20.77(1.25 6752-l 21.451..t9 Account Information Additional Messages I Thc Intcmal Revenue Service Regulations under section 4U I (a)(9) of 'he Internal Rcvenuc Code rccluirc notification of the following information regmding Required Minimum Distributions (RMD) from IndiVIdual Rctirement accounts. * If YOll have allained the age of 70 1/2 you must take a Minimum Required Distribution by Dccember J 1st. * During the calendar ycar for which you turn 7U 1/2 years of age, you have until ApriJ 1st of the following year to begin your RMD payments. * Upon rcqucst. the amount of your R.J\iD paymcllt will be c<dculatcd and provided to )'ou. * If you arc taking RMD from another source or currently taking a RMD. no action is required. * Current regulations require we notify the IRS if you have an IRA wi'lh llS that it is subject to RMD. VI 14:\.'\:\ 101/1003) all A Member of American Inte~national Group, Inc. I 4#*0...__ -- .........- ....,..,.._.... ,....~........... ....,.......... ,,..,.."',.... f.\ \ 0<\ ~ Allstate. Glenbrook Life and Annuity Company PO Box 94042 Palatine IL 60094-4042 Telephone: 1-800-755-5275 Fax: 1-847-402-5313 CLAIR E MANGES GEORGIE ANN MANGES 80 CARPENTER DR NEWBURG PA 17240-9219 November 7, 2004 Your Representative KIM M,llLS PNC '!'JSURANCE SERVICES, INC 620 UBERTY AVE, 26TH Fl A TTN: DOREEN MilLS PITTSBURGH PA 15222-2722 (610)892-5942 Allstate. Advantage Plus Annuity Statement # GA0583798 ACTIVITY THIS PERIOr): Beginning Account Balance 08/07/04 .. .. .. .. .. .. .. .. .. .. .. .. " .. .. .. .. .. .. .. .. .. .," .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. $ 35,647.29 Interest Earned 08/07/04 thru 11/07/04 .................................................. $ 265.85 Ending Account Balance 11/07/04 . . . . . . . . . . . . . . . . . . . . . . . . . .1. . . . . . . . . . . . . . . . . . . . . . . . .. $ 35,913.14 Net Cash Surrender Value 11/07/04 .. .. .. .. .. .. .. .. .. .. .. .. .. " .. .. .. .. .. .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. $ 33,973.83 Net Cash Surrender Value 08/07/04 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. $ 33,722.34 ACCOUNT VALUE DETAIL AS OF 11/07/04: Current Rate Fund Value 3.00% $ 35,913.14 New effective annual rates for each fund will be determined when the current guarantee expires. If you have any questions concerning your annuity please contact your representative at your financial institution. Glenbrook Life and Annuity Company issues fixed and SEe-registered insurance products. SEe-registered insurance products are underwritten by ALFS, Inc. Both Glenbrook Ufe and ALFS are wholly owned subsidiaries of Allstate Life Insurance Company. :o~..''''.' .~.~~ -: ~ . ;:.~ 112Nl2 B140RLNF.N01 &f&00028140RlNF814QAi.ltfooow GENERAL ANNUITY INFORMATION Annuitant: Owner: Issue Date: Type of Plan: PrimarY BeneficiarvCies): Claire Manges Jr Michael Manges Paula Taylor Brian Manges Christine Johnson Clair E Manges Clair E Manges 02107/01 Non-Qualified ) Georgie Ann Manges Percentaae Equally Equally Equally Equally Equally 2 B140RLNF.N01 &....00028'..0Rtt-\Fg'40AlHfOOOOO Contract Number: 7109948 79 ::~TF()Rl ..... 07840 Annuity Client Service Center 1-800-862-6668 Monday through Thursday 8 am to 7 pm, Friday 8 am to 6 pm, and Saturday 9 am to 2 pm Eastern time Transaction Detail PAGE JOSEPH F BOWDEN FINANCIAL NETWORK INV CORP 1 KACEY CT STB 201 MECHANICSBURG, PA 17055 .....'. '..-..'......',.............,.... ..... .... ,-, ..... .........,...... ...... ....-.....-. ..... ,". .",._...,.._, .1il_~ . ......--.... .... . ... ..-.."'. . .. . . . . .. ,. 06362 CLAIR E MANGES GEORGIE ANN MANGES 80 CARPENTER LANE NEWBURG, PA 17240 1 OF 1 Trade Date Sub-Account Name Transaction Description Dollar Amount Unit Value Units Transacte 01/10/05 GLOBAL HEALTH 01/10/05 FIXED ACC DOL-COST-AVER-IN DOL-COST-AVER-OUT $55.46 1.707147 $55.46 32.48 As Of. 01110/05 Value By Sub-Account Sub-Account Name Total Units x Unit Value = Current Value $3,234.89 $22,111.50 GLOBAL HEALTH FIXED ACC 1894.910 1.707147 * FIXED ACC VALU~ SHOWN AS DOLLARS Payment tsy Mail ~~~~~~.~~~~~.... ............p~~~~~t.........Aii~~~t.i.~~.~f...piease..use th.!s..shih.to..make..ad"d"itl.o.nai".pa.ym.e.iits............... ...... ....... Name Allocation this Payment Total Contract Value $25,346.39 GLOBAL HEALTH FIXED Ace 100.00% Contract Number: RE: CLAIR E MANGES CLAIR E MANGES GEORGIE ANN MANGES 80 CARPENTER LANE NEWBURG, PA 11240 710994879 Purchase Amount $ Please make your checks payable to: Hartford Life Total 100% 100% o Invest this payment as shown Under "Present Allocation" in the chart to the left. o Invest only this payment as I have indicated in the chart to the left. Please retain my "Present Allocation" instructions as shown. ...: o Invest this payment as I have indicated to the left and invest any future, payments in accordance With this new allocation. o Changing Address? Check box, note new address on reverse, and return to us in the enclosed envelope. TIlE . HARTFOIlD ...,,--,,"~...--,-, -,,,"~-- - """"""" - .. - - - .- !I!!I!. ~~ ~(I) I!!!!!I!!I'" EI!IJ -f') a -0 iii :: _l'-,- -0 _... -~ i!II ~ .... iiii - ~ == !Ii! THE DIRECTOR OUTLOOK VARIABLE ANNUITY QUARTERLY STATEMENT I OCTOBER I, 2004. DECEMBER 31, 2004 PAGE 1 OF4 ' THE X I-IAR'l'FO\\D Did you know there's still time to contribute to an Individual Retirement Annuity (IRA) for 2004? The deadline for contributing to last year's IRA is April 15, 2005. You may contribute 'up to $3,000 (maximum for all lRAs combined) OJ' $3,500 for those 50 and older. Experts agree that regular contribtftions can be an effective investment strategy for long-tenn goals. So if you haven't made a full IRA contribution for 2004 yet, why wait any longer? #BWNGSGR #VI9ESSRAAAAX7# 901 CLAIR E MANGES 80 CARPENTER LANE NEWBURG PA 17240 CONTRACT NUMBER 711033334 PURCHASE DATE November 21,2001 CONTRACT TYPE IRA OWNER NAME Clair E Manges ANNUITANT Clair E Manges SUMMARY Beginning Value Premium Payment Total Surrenders * Annuity Perfonnance Ending V Hille QUARTER 10/1/04-12/31/04 135,842.66 0.00 6,096.39- 1,608.22 $131,354.49 YEAR-TC>DATE 3/1/04-12/31/04 132,925.09 0.00 6,096.39- 4,525.79 $131,354.49 SINCE PURCHASE 11/21/01-12/31/04 137,298.27 18,206.35- 12,262.57 $13 J ,354.49 Per IRS reporting b'Uidelines, the Ending Value above is the December ,31st Fair Market Value for this IRA contract and wHi be reported to the IRS accordingly. F'OR ASSISTANCE, CONTACT EITHER: Your Investment Professional Joseph F Bowden FINANCIAL NE1WORK INV CORP I Kacey (t Ste 201 Mechanicsburg P A 17055 the Hartford Attn: Investment Products Services PO Box 5085 Hartford, CT 06102-5085 www.hartfordinvestor.com 1-888-488-2228 Automated Voice Services -1-800-862-6668 Client Services 1-800-862-7155 Producer Services * Total Surrenders include Contingent Deferred Sales Charges and Annual Maintenance Fees, if appJicable. All information about your variable annuity, including charges and expenses, is described in your prospectus. Please read it carefully and keep it for your records. Our hours of operation are Monday-Thursday 8:00 a.m. to 7:00 p.m. and Friday 9: 15 a.m. to 6:00 p.m. (Eastern time). YOUR ANNUITY AT A GLANCE ~~ 91.3% Fixed Acc . 3.1% Mortgage See ~ 2.7% Dividend & Growth . 1.5% Cap Appreciation fB 1.4% GI Fin Svcs ~F"ANCOA' S....e<< April 11, 2004 ANNUAL STATEMENT Claire & Georgie Manges 80 Carpenter Lane Newburg PA 17240-9219 Annuitant: Claire E. Manges Contract~i BK3106270 Product: GPA April 11, 2003 to April 10, 2004 Value De sits Withdrawals/Fees Eatn'n s Credited Endin Value $13,492.61 $0.00 $0.00 $507.39 $14,000.00 Date Received Transaction Dollar Amount There were no annuity transaction requests received during this period. Effective 04/11/04, your premium payment of 04/11/01 will renew at 3.25%. For urther Information In Your nterest Our service representatives are ready to assist you 8:00am to 8:00pm ET at 1-800-732-5543. Reminder: early withdrawals & surrenders may be subject to withdrawal charges, income tax, & an IRS penalty. Thank. you for choosing a John Hancock Annuity. John Hancock life Insurance Company John Hancock Variable Life Insurance Company (not licensed in New York) Signator Investors. Inc., Member NASO, SIPC Customer Access life and Annuities P.O. Box 772, Boston. MA 02117.1-800-732-5543. 8am to 6pm Eastern Time For the Hearing and Speech Impaired (TOO) 1-800-832-5282 ANNUl'lfS - . ~ rf~fflzn~ Form XOO69.D Ed. 2/2004 Revenue: Somerset County Page 1 of2 o Personal Income Tax o Prooertv Tax and Rent Rebate o g~~JtY_InHl~f~.Lli,tlS oJ Exolanation of Tax oJ Common Iv Asked Questions oJ Common Level Ratio (CLR) Real Estate Valuation Factors oJ Download a Form. Schedule. or Instruction Booklet o Inheritance Tax o Claarette Tax oJ Use Tax oJ Motor Fuel Taxes oJ Local Tax Information oJ Unemolovme:nt Comoensation oJ e-Servlces oJ Tax Rates oJ Tax Due Dates It Forms & Publications oJ Kevstone Qooortunitv Zones oJ Voluntarv Disclosure Proaram oJ Leaal/Lealslative Information . Taxoavers' Rlahts Advocate lJ Commonlv Asked Ouestions . Contact Us oJ View as Text-Onlv oJ Site Feedback lJ Site Index . Home I Login @.Alerts Receive notification of changes to our site. Subscribe Now . IRS BIIIi -.--.-- Common Level Ratio (CLR) Real Estate Valua Factors Browse Search Revenue Home Back Printable Version Text-Onlv Full-Screen eMail PI Somerset County ACCEPTANCE CLR DATE FACTOR FROM ' TO 7-2-1986 6-30-1987 5.35 7-1-1987 j 6-30-1988 5.75 7-1-1988 6-30-1989 6.02 7-1-1989i 6-30-1990 6.37 7 -1-1990 l 6-30-1991 6.71 7 -1-1991 6-30-1992 6.62 7-1-1992 ; 6-30-1993 7.14 7-1-1993 6-30-1994 8.00 7 -1-1994 \ 6-30-1995 8.77 7-1-1995 ~ 6-30-1996 8.40 7 -1-1996 6-30-1997 8.47 7-1-1997, 12-31-1997 9.17 *1-1-1998' 6- 30-1998 2.00 *7-1-1998 6-30-1999 2.00 7-1-1999, 6-30-2000 2.14 7-1-2000 6-30-2001 2.21 7-1-2001 6-30-2002 2.23 7-1-2002 6-30-2003 2.32 7-1-2003 6-30-2004 2.34 7-1-2004 6-30-2005 2.47 7-1-2005 6-30-2006 2.63 * Adjusted by the Department of Revenue to reflect assessment ba~ effective January 1, 1998. 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