EFTA01080220.pdf

quid of Difference The Scarborough Group of Companies, Inc. 4615 North Park Avenue #1411 • 6iZZeiL Log OddAV 6I6IELS0I6 ipinoioqmos Whose 6Z:IT nt3Z/6Z/90 03AI33321 89e: ti i. Zunr EFTA01080220  THE SCARBOROUGH GROUP OF COMPANIES, INC. EIN: SCARBOROUGH AVIATION, INC. FIN: SCARBOROUGH ASSOCIATES & INVESTORS, INC. SCARBOROUGH CARGO SHIPPING, N.A. EIN: SCARBOROUGH FREIGHT & TRANSPORTATION SYSTEMS, INC. EIN: USDOT$31991 MC # 409859 INTERNATIONAL CRUISE LINES, INC. EIN: PELICAN INVESTMENT GROUP, INC. EIN: • 6LZZ9ILL0£ CleIclAte tiOnwoqmos ethos° g9£ LLZL6ZUnf 6T6TELSOTO 6Z :IT ZIOZ/EZ/90 Q3AI30321 EFTA01080221  OFFICIAL CORPORATE RECORDS OF THE SCARBOROUGH GROUP OF COMPANIES, INC. SPIEGEL &UTRERA,. 9 EAsc LOOCKERM. STRzzT, Sour 3A • Dow, DE 19901 612Z9,1 q600mq.ons of9.9 ®S£:lI 06.9. 6I6I£LSO10 6Z UT ZTOZ/6Z/90 03AI303i EFTA01080222  CERTIFICATE OF INCORPORATION OF THE SCARBOROUGH GROUP OF COMPANIES, INC. AHEMj_nigANIE. The name of this Corporation is THE SCARBOROUGH GROUP OF COMPANIES, INC. ARTIpLE_2 -REGISTERED OFFICE AND REGISTERED AGENt. The registered office in the State of Delaware is to be located at 9 East Locckerman Street, Suite 3A, in the City of Dover, County of Kent, Zip Code 19901. The registered agent in charge thereof is Spiegel & Utrera, P.A. ARTICLE 3 - PURPOSE. The purpose of the corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporations Law of Delaware. ARTICLE 4 - CORPORATE CAPITALIZATION. The amount of the total stock of this corporation is authorized to issue is 3,000 shares with a par value of $1.00 per share. An holders of shares of common stock shall be identical with each other in every respect. ARTICLE 5 - INCORPORATOR. The name and mailing address of the incorporator is Elsie Sanchez, 9 East Loockerman Street, Suite 3A, Dover, Delaware 19901. ARTICLE 6 - DIRECTORS. The initial Directors of the Corporation shall be George Scarborough and George Scarborough, II, whose mailing address shall be 4615 North Park Avenue *1411, Chevy Chase, Maryland 20815, which shall be the principal office of the Corporation. ARTICLE 7 - SURScHAIMELIS&ReaRtigION. The Corporation may elect to be an S Corporation, as provided in Sub-Chapter S of the Internal Revenue Code of 1986, as amended, and may thereby subject itself to the privileges, restrictions and limitations set forth therein. ARTICLE S - INDEMNIFICATION. The corporation shall have the power to indemnify any person to the full extent permitted by Title 8, section 145 of the Delaware Code. A copy of the Indemnification Agreement, if any, is on file at the principal office of the Corporation. I, The Undersigned, for the purpose of forming a corporation under the laws of the State of Delaware, do make, file and record this Certificate, and do certify that the facts herein stated are true, and I have accordingly hereunto set my hand this 17 October 2007. Elsie Sanch • 6I2Z8LL LO£ ObdNd 6161ELGOTO EZ yenoiogiees &Does ZIOZ/6Z/90 03nI303d g9£: L L zt sz unr EFTA01080223  Delaware PAGE 1 'The first State I, HARRIET SMITH WINDSOR, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY "THE SCARBOROUGH GROUP OF COMPANIES, INC.^ IS DOLT INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE AND IS IN GOOD STANDING AND HAS A LEGAL CORPORATE EXISTENCE SO FAR AS THE RECORDS OF THIS OFFICE SHOW, AS OF THE NINETEENTH DAY OF OCTOBER, A.D. 2007. liametsvichwilitimsccrtmlyNSwil 4442224 8300 AUTHENTICATION: 6097537 071130709 DATE: 10-19-07 6 LZZ9LL lot yEtnomxpeog °Woe° e9£:LLZL 6Z unr 061dAtr 6I6TELSCELP 6Z :IT ZIOZ/6Z/90 o3AI3336 EFTA01080224  OMB Clearance No.: 1545-0146 C inuf._ - "-:iDa-p.uivient of ibe Treasery K110.3 'annul Kennet Strelre in roply rotor tot 0223538709 CINCINNATI OH 45999-0046 Dec. 10, 2007 LTR 312C 1 000000 00 D00 00004178 BODC: SB SCARBOROUGH GROUP OF COMPANIES CORP 4615 N PARK AVE STE 1411 CHEVY CHASE MD 20815 Taxpayer Identification Number: Dear Taxpayer: On Oct. 29, 2007, we received your Form 2553, Election by a Small Business Corporation, in which your organization filed an election to be treated as an S corporation for income tax purposes. We need more information before we can process your Form 2553. Please furnish the following information: The required consent statements of all shareholders. For each shareholder, please include the following: Shareholder's signature Signature and title of an officer of the corporation. This election to be treated as an S corporation must contain all required information and be timely filed. To help you meet the filing period requirements, we have granted you 30 days from the date of this letter to respond. If you do not provide all the required information, you cannot file as an S corporation. We have enclosed an envelope for your convenience. If you have any questions, please call us toll free at 1-800-829-0115. If you prefer, you may write to us at the address shown at the top of the first page of this letter. Whenever you write, please include this letter and, in the spaces below, give us your telephone number with the hours we can reach you. Keep a copy of this letter for your records. Telephone Number Hours 6'd 61229 LO£ utincuocpeog otiose entL 2L 62 unr OH:14V 6T6TELSOIP 6Z:tI ZIGZ/6Z/90 O3AI3D3M EFTA01080225  MINUTES OF SPECIAL MEETING OF DIRECTORS OF THE SCARBOROUGH GROUP OF COMPANIES, INC. The Special Meeting of Directors was held at Chevy Chase, Maryland 20815 on 22 October 2007, at 3:30 o'clock this p.m. The following were present: George Scarborough George Scarborough, II being all of the Directors of the Corporation. A discussion was had among the Directors as to the relative merits of entering into the draft Indemnification Agreement and Covenant Not To Sue which is attached hereto. Upon motion duly made, seconded and carried, it was RESOLVED that the Corporation by and through its President is hereby authorized to execute the aforesaid Indemnification Agreement and Covenant Not To Sue. There being no further business before the meeting, on motion duly made, seconded and carried, the meeting was adjourned. DATE: 22 October 2007 A at/OI/ /Li, Oeorgc Sc rough, rector 6IZZ8LLI0£ genoloqieog some° EIL£: L L ZL eZ Lan(' OddAV 6 T6IELSOD 6Z :IT ZIOZ/EZ/90 43AI303d EFTA01080226  WAIVER OF NOTICE OF SPECIAL MEETING OF DIRECTORS OF THE SCARBOROUGH GROUP OF COMPANIES, INC. We, the undersigned, being all the Directors of the above named Corporation hereby agree and consent that the Special Meeting of Directors be held on the date and at the time and place stated below for the purpose authorizing the Corporation to enter into a indemnification Agreement and Covenant Not To Sue and to transact thereat all such other business as may lawfully come before said meeting and hereby waive all notice of the meeting and any adjournment thereof. Place of Meeting: Date of Meeting: 22 October 2007 Time of Meeting: 3:30 p.m. /LI" // George Scarborough, Director SZbo rou t4t Director -rni—We °i f L vd 6I 9LLl0£ tiOnoiocpaos °Mono ea: I. zt ez unr O&M 616TELSOTO 6Z ZIOZ/EZ/90 03AI3D32I EFTA01080227  MINUTES OF SPECIAL MEETING OF SHAREHOLDERS OF THE SCARBOROUGH GROUP OF COMPANIES, INC. A Special Meeting of Shareholders of the Corporation was held at 4615 North Park Avenue #1411, Chevy Chase, Maryland 20815 on the 22 October 2007 at 3:00 o'clock this pm. All of the Shareholders being present, the meeting was called to order by the Chairman. The Chairman advised that all the shareholders had executed written consents to the election by the Corporation to be treated as a "Small Business Corporation". Upon motion duly made, seconded and unanimously carried, it was RESOLVED, that the proper officers of the Corporation are hereby authorized to take any and all action necessary to comply with the requirements of the Internal Revenue Service for making an election pursuant to Sub Chapter 5 of the Internal Revenue Code of 1986, as amended. There being no further business to come before the meeting, upon motion duly made, seconded and unanimously carried, the meeting was adjourned. DATED: 22 October 2007 rg- , II, Stcretary r al George Scarbdioughthairman /1 / ZI'd °Welt 0£ LIBnoloqmos same eau ZL sz unr 0844t, 616TELGOD E•Z 70 Z /6Z/90 03AI3031 EFTA01080228  SCARBOROUGH GROUP OF COMPANIES CORP FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2010 See Accompanying Accountants Report 20101W 1..osze.r It&WTMT1 JV/k Coprigh I 4Win (SOltware °MY: d 612Z9LL L0C tionwoweps e6Joes 89£:L L a 6Z unr Odant, 616 TELSOTO 6Z TOZ/6Z/90 03AI303a EFTA01080229  CHEVY CHASE MD 20815 Accountant's Compilation Report SCARBOROUGH GROUP OF COMPANIES CORP 4615 N PARK AVE STE 1411 CHEVY CHASE, MD 20815 We have compiled the accompanying statement of assets, liabilities, and equity - cash basis of SCARBOROUGH GROUP OF COMPANIES CORP , an S Corporation, as of December 31, 2010, and the related statement of revenues, expenses, and retained earnings - cash basis for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The financial statements have been prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. A compilation is limited to presenting, in the form of financial statements, information that is the representation of the owners. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. The shareholders have elected to omit substantially all of the disclosures ordinarily included in financial statements prepared on the cash basis of accounting. If the omitted disclosures were included in the financial statements, they might influence the users' conclusions about the company's financial position and results of operations. Accordingly, these financial statements are not designed for those who are not informed about such matters. H&R Block Premium 02-28-2011 NA Copyright ronmr (Unease. On1.4 2010 TW L0526.1 ID liSS1102 trvd 6LZZ8LLL0£ tionwoqmos ethos° ese:Lt zt eizurr 06dAto 6T6 TELSEIT0 6Z:IT ZIOZ/EZ/90 03AT33321 EFTA01080230  SCARBOROUGH GROUP OF COMPANIES CORP STATEMENT OF REVENUES AND EXPENSES - CASH BASIS FOR THE YEAR ENDED DECEMBER 31, 2010 REVENUES $221,141,450 COST OF REVENUES TOTAL COST OF REVENUES 0 GROSS PROFIT 221,141,450 OPERATING EXPENSES TOTAL OPERATING EXPENSES (See Statement) 187,477,006 TOTAL OPERATING INCOME (LOSS) 33,664,444 OTHER REVENUE AND EXPENSE ITEMS TOTAL OTHER REVENUE AND EXPENSES 0 NET INCOME (LOSS) $33,664,444 RECONCILING ITEMS FROM SCHEDULE M-1 0 NET INCOME (LOSS) PER BOOK $33,664,444 ZIE *SEE ACCOUNTANTS COMPILATION REPORT Copympit Peens (Soltwv• Only)- 1010TM LOSZOJ 10_13SSTMT3 gvd 6LZZ8LLL0£ gOnaloweageMoes 89£:1L ZI 6Z unr 0ddAtl 6T6T£L00Tb 6L:II ZIOZ/6Z/90 03AI303d EFTA01080231  SCARBOROUGH GROUP OF COMPANIES CORP STATEMENT OF ASSETS, LIABILITIES, AND EQUITY - CASH BASIS DECEMBER 31, 2010 ASSETS CURRENT ASSETS Cash $37,357,311 Accounts Receivable 78,450,353 TOTAL CURRENT ASSETS $115,807,664 LONG TERM ASSETS Buildings and Other Depreciable Assets 572,267,728 Leas: Accumulated Depreciation -215,123,553 TOTAL LONG TERM ASSETS 357,144,175 TOTAL ASSETS $472,951,839 *SEE ACCOUNTANTS COMPILATION REPORT - Copyright Fu .SoRban Glill iW OD M L%24 10.B.SSITAII) MA grd WM/. L0C titlnatoqiess(imes €6£: LI Z L 6Z mil' 021dAV SIG IELSO TO 6Z :II Zit:a/63/90 03AI30321 EFTA01080232  SCARBOROUGH GROUP OF COMPANIES CORP STATEMENT OF ASSETS, LIABILITIES, AND EQUITY - CASH BASIS DECEMBER 31, 2010 LIABILITIES AND STOCKHOLDERS EQUITY SHORT TERM LIABILITIES Accounts Payable $15,982 Other Current Liabilities 146,420 TOTAL SHORT TERM LIABILITIES $162,402 LONG TERM LIABILITIES Long Term Note Payable 108,995,278 TOTAL LONG TERM LIABILITIES 108,995,278 TOTAL LIABILITIES 109,157,680 STOCKHOLDERS EQUITY Capital Stock 1,000 Additional Paid-In Capital 49,000 Retained Earnings 363,744,159 TOTAL STOCKHOLDERS EQUITY 363,794,159 TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $472,951,839 •3EE ACCOUNTANTS COMPILATION REPORT se_OSSTIAT? JVA Copythibt FonnsMattis, Only) - 2010 VW LOW LL'd 6LMILlOE qt3noiocpess ellmeo ETC:L 6Z unr 08dAti 6T6TELGOD7 6Z:II NOZ/6Z/98 03A1303N EFTA01080233  SCARBOROUGH GROUP OF COMPANIES CORP STATEMENT OF RETAINED EARNINGS - CASH BASIS POR THE YEAR ENDED DECEMBER 31, 2010 RETAINED EARNINGS - 01-01-10 $152,585,476 ORDINARY INCOME (LOSS) $33,664,444 TOTAL INCREASES 33,664,444 TOTAL DECREASES 0 RECONCILING ITEMS BETWEEN RET. EARNINGS AND SCE M-2 177,494,239 RETAINED EARNINGS - DECEMBER 31, 2010 $363,744,159 *SEE ACCOUNTANTS COMPILATION REPORT Copyright Feteis(Settwire Only) - 2010 TV 1.0420J wftnmn JVA grd 6I2Z914lOt lienomxpeose6xa0 en:I.L Z L 6Z unr 08dAV 6T6TELSOID 6Z:1T ZSOZ/6Z/90 03AI303d EFTA01080234  2010 SHAREHOLDER #1 SCARBOROUGH GROUP OF COMPANIES CORP rrrrrrrr GEORGE SCARBOROUGH, SR. Attached is your copy of Schedule R-1 to the D.S. Income Tax Return for an S Corporation (Form 11205) which was filed with the Internal Revenue Service and shows your share of distribution from: 1ES CORP The items of income, loss, deduction or credit which appear in the enclosed material may have an important bearing in the determination of your taxable income. However, the provisions of the income tax laws are complex and may be interpreted differently for different taxpayers. For this reason, you may wish to seek the assistance of your tax advisor with respect to the proper treatment of these items in your federal and state returns. We have prepared this information from unaudited data supplied by the tax matters person. We did not attempt to verify any of the information and elections contained therein. The returns are subject to examination by the taxing authorities and, accordingly, the income losses, deductions or credits which appear are subject to possible adjustment. CA009A0wmeMehmal10-20101W OUN WASKIBUK WA svd 6IZZ91410£ Llenaloqieos ()Moe° scant. Z l st unr OeictrIV 616 IELS014 6Z:II Z tOZ/E2 /90 03AI303d EFTA01080235  #1 671110 ri Anal <-, n Amended K.-1 OMB No 1545-0130 Schedule K-1 2010 Shareholder's Share of Current Year Inc., (Form 1120S) teen mj Deductions. Creolts. and Other Items I Oapannenl Id the Treasury For ericedor year 2010, or tax 1 Ordinary 0.•Inist •nc. (Iasi 13 CtOCittS In:enat ~SIB» en<c• year beginning . 2010 26,931,555 ending ,20 2 Nei re.tal real «TS Inc. (lass) Shareholder's Share of Income, Deductions, 3 Otte/ net rental ^corn e (kin) Credits, etc. r• see page 2 and separate Instructions. 4 Interest Income ! Part. I .1 Information About tho Corporation* A Corporation's ernployerideritScallon number S. Ordinary cirridends B Corporation's name, achlresiLdtf. 3184 and 2234:000 50 Qualified divklends 14 Foreign transecbors SCARBOROUGH GROUP OF COMPANIES CORP O Royale« 4615 N PARK AVE STE 1411 CHEVY CHASE MD 20815 7 Net short-term C.40. pal rocs) C IRS Center whore corporation fled return sa Net loarionn cap. pus (Jots) DGDEN ab ColkiMbles pttløstain pen) F1E JN! Information About the Shareholder IIC Llussuptueed sac. 1250 Gels E Shareholders narre, address, City. state, and ZIP codo 9 Net archon 1231 gain (loss) 10 Other income (loss) lb Alternat n. (ALM .to rns 3EORGE SCARBOROUGH, SR. A -6,008,264 4615 NORTH PARK AVENUE, #1411 CHEVY CHASE, MD 20815 F Shareholders poroantage ol stock ovmaaNp for lax year 80.0000% For IRS Use Only 11 Section 1790esucton 18 iterreattocOng sharehalcks basis 12 Other deductions 17 Other inlormation • See attached statement for additional intorrregort. Schedule K-1 (Form 1120S) 2010 For Paperwork Reduction Act Notice, bee Instructions for Ferm 11205. -riA 10 120SK112 TWF 311183 Gpoyfiglit Forms ISoltein Ofily)-20107W • 612Z9LL LO£ 0Edntl 6161ELSCITV 6Z:11 tginoioqiecs (Awe° 18L/6Z/98 03A13D3S BODLLLL6Zjnr EFTA01080236 Schedule K-1 (Form 11205) 2010 GEORGE SCARBOROUGH, SR. Page 2 This list kbMttko the codes melon Schedule K-11orall shoraho ethers and provides summarized reporting Irdennatkm for shareholders who Me Form 1040. FM detailed reporting and sling Information, see the separate Shan:4144We Ina/axioms for Selieclule K-1snit Instructions for your Income tax return. Code Report On 1. Ordinary business Income (toes). onenene whether VI* M Crueller Increases research ioalree (1635)Se paSsive of neripanove sad e ids roe your Manes Wawa: aenCers See the Merneiders Instrucgons N Creme for employer social ROMA 0, seCurliyand Msdic/ue ma Form ame. Ina S Perin bee Sac tee Shan %Old ere MathiCeene O Reckon otthholdl0 Perm 1045. fine Si P a salve in Co me Schedule E. Inc 24 00Usres P Other meat. Sem the Shesekeldede durthreusea Mcmpassive ass Schedule a, ins 2$,Celorempil 14. Foreign teens for Mencassrve ocorse Sonettlule E. ins 24 earn (a l A Na... of orminVy or U.S. 2. Net rental real estate Income (loss) Sere the ShareIs1dore instructs CeniMMOrt 3. Other net rental Income (lose) B Gress atoms from all sources e Form 1114 Part I • irmme Schedule E, bra te,0?'‘ne (Id C Gress Income sourced al Na? ross See the 3herezelders Intact ons shareholder Isnot Foreign Does Menem anurrod al corporate level 4. Interesting:onto Form 1040, lino en D Padre ca tegory Sa. Ordinary dividends Form 1040. Fine Is E Once' catseory le Form I I Id Pert I 56. OLialNIOCI dhrldends Form icme. W e Oh F ems, 6. Royalists 94h•Cal ld E, Ins • Oetredelne sae soled and *peon,. s ed at SherehOkter level 7. Net short-term capital glen (bas) G Intoned opals, form 1114 Past I ached, le 0. In, 4. column (f) H Other Ione1114 Part) S.. Net long-term monad gale (loss) Schedelo 0. It.. I& colons (9 Oedychos.- • allocated seri apponto nest comsat* level to temp , es tore fib. Collectibles (28%)1110I (MBA 21% Pate Can Worksheet. 4w4 W arn ISchedele 0 anslroollens) I Paselve telegory Sc. Unrecaptured section 1250 gain Sert the Shareholder% Inancbecs J Mmena canon , Farre1114/.nl 9. Net section 1231 gain (loss) See the some nide:. Instructiors K other Other Ingoy pu etc, to. Other Income (loss) low fear toes pee Fenn1114 Pert II Cods M Tow tare one texts moved Form ut4 1Mtn A CM er pert/SIM income fishy Seethe sae:newer& Inetructons N Reduction In area avel:able for B vvolmtry conversions See the Sherebe VMS InSeuCtOne emelt Form 111411th 12 C Soc. 1250 carbacla • irtraddles Fan nil, lee O Forage remand gross moos Fore Ian O Miring esekorellon costs receptors See Peg. $55 P Ctrestorrironai dedue• °sada n Form 0423 E Ctnwmcoe. seed See thmSbereboidars Instructions O omen 'Weigh traftMOICtilli tin the Shareholders eats/MOON. 11. Section 179 deduction Sem lb. Snatirkukbes InstruclIerm IS. Atttenathe minimum tax (AMT) Items ) 12. Other deductions A Post-19a4 depredation adjustment Sec lit • Adjusted gain or Ina Shareholders A Cash ocritrIbutlOns an) C Winner. (other tact eil Loss) Metre se one end B Cash contributions Pc44 I7 0i4 goe.6 gootheresal--vole Income the hommuonerce C Nona ah oddribatrOrd 210%1 E OIL essamod enrai...6,4„oi.„, Form 6251 Nonuse comdlesbone (YO e Sae the Sherehe Wets ,restnactIonet F otsusur 'tees E Capita/ gam property 10 a SO% It /terns affecting shareholder bads organization (a0%) Form 1045. Ins a b F A Tax --enreirdt Memel wooed GPM , Oen eroPertY 0 0W 1 G Coneithrtlens (100%) B Other tamesormi ;rooms tretatelent lidded esperde Form 4952, one 1 C NOM declUrdible CIR00.00 . In the Shareholder's CoductIons-- rofitIlYmOom4 Sthe Arts E, fuse is D gutless leetnsetiOnS J Sechen SeleX7) emPend hues See tee Snuoteldei Intuition E Repayment of ban from sharehOlderi K OadscolonS-- portfollo (2% Moor) Schedule A, Hoe 23 L neascsons--pomrollo (amyl Scheele* A, hoe 26 17. Other Information M Prep roducthre period expenses Soo PM Sharon ones moznovions A lirreCreent lere0 Me Form 4•52. In de N Cora email revirelzation B leueortment osmoses Form <Met, toe S deduction Iron rental real C thzellfied Wm Wiesen espenoneres estate *strobes Sew Fonn $5e2 Outwears (other lilt tentsI teal trawl See the Shareholders Instrucut oe O Refersnation expense O Bess of energy preperty 304 Ise Shareholder's letetrUCtrOn • &ideates See the Anna orders lostructot Domestic producizon ealunnes E Recapture ot loe-Wcome noosing See Form 9003 Instroci.ens cries Omen COM Form $011, 'me 6 :reformats, F SeCeplUlli of loirattOirur horsing Wahl d pro ductien Schulties credit (other) Fenn sllycnuI Maras Form 5003.1le 70 sea Farr, 421,1 a flellature of rerdustment credit R Employers Fern W.-7 mopes Fore 5903. dm l? 11 Recapture at ether ante Sae the Snateholders InstrucOons S area deductions Zee Ike 6Mnnolde re loot/wee he 1 Leal -beck intereat —temple led 13. Crecets lerg-tane contracts ale Faros kV? A Low-atone heonng credit ;soca° n J Look-beau inteseet—,etcOme I onmeat method 344 Form sees 42())(03 from pro-2004 ammo° Soy I he kareholdar's teemed, no B Low-income housing credit (41hor) K Dispel/mut of properly with from pro-20011buil/begs See the Shareholder's letters salons seems In deductions C Low-taco one hddin2 Veda ;settee L PeCaplierit of sodden ¶79 42 OyS2 from pest-200? !ma'am gm Fo -re 22660die It droduclos O Low-raceme hooded credit {Other) M Soot , 4334001atormston tree post-ZOOp buildings Form Odle. Ine 1. N Samna 43M(c.)Inlonnetton E allethld rehetel tabor expenditures O Section 1210(b)palormadon (metal reel estate) See the Shereboldee's p Interest allocable to production Set the S nom" o Wets F Other rental raal estate meats lost:Nolan expendlers• Ude OCt ON G Other rental omdtts 0 CCF nOnguearied wirthdrodah Uothetributed capital pee weal RON 1040, in. 71. bees R OspleVen artormatc• — <eland tass 1 Atozhol and eathrloslc Segel fuels S Amerdszlion of ref orearation credit Fo m 647a. ens a costa J 1Y04% Opporkifilty Credit Form 5.524, Ilne 3 &Klan 10811;rtiorretten K Disabled flee* credt See the Shareheldoes InsITectionS U Other in1Orraatten L Emperor', eat cone end ranesei community employment credit Form 4444. Imo 3 ,NA 10 120SKIt2 TWF 39124 Copyright Feted (Sof tome Only)- 20101W LZ d 62Z9LL L0C 46raioq)eos etimee 8 04:L a 6Z unr 08cAtr 6I6t£L50I4 EZ ZIOZ /6Z/90 03i1I3338 EFTA01080237  2010 SHAREHOLDER #2 SCARBO oRP CARBORO II Attached is your copy of Schedule R-1 to the U.S. Income Tax Return for an S Corporation (Form 1120$) which was filed with the Internal Revenue Service and shows your share of distribution from: ES CORP The items of income, loss, deduction or credit which appear in the enclosed material may have an important bearing in the determination of your taxable income. However, the provisions of the income tax laws are complex and may be interpreted differently for different taxpayers. For this reason, you may wish to seek the assistance of your tax advisor with respect to the proper treatment of these items in your federal and state returns. We have prepared this information from unaudited data supplied by the tax matters person. We did not attempt to verify any of the information and elections contained therein. The returns are subject to examination by the taxing authorities and, accordingly, the income losses, deductions or credits which appear are subject to possible adjustment. Jo, Copyright FormsiSelwar•Oilly) . 2010 TW 10$25.1 01,IMMBUM ■ 6LZZ9LL;0£ yenalcxpeosetimeo et171.1 Zl 6Z unr OedAV 6161ELGOTO 6Z:11 ZTOZ/6Z/90 C3AI3038 EFTA01080238  #2 671110 Arnondod K 0M9 No 1C45-0130 Schedule K-1 2010 Shareholder's Share ot Current It Dednetio th Year Inc., (Fonn 112O% Crest(' end erItems Department el Om Trostuty Fe< calends year 2010, or tax 3 Creed Internal %roue Sinks you beginning , 2010 ending , 20 Shareholder's Share of Income, Deductions, 3 Othe• mil ~Silicone Qom) Credfts,eW. ► See page 2 and separate Instate 6. 4 intend Income I pil j Information About the Corporation A C.43 atisn's employer Idendcation number Sa Ordinary dividends B C,orporeaoar name address, city, stale, and 2IP code Sb Ciudad dividends 14 Foreign ransoclons SCARBOROUGH GROUP OF COMPANIES CORP I Freya:ass 4615 N PARK AVE STE 1411 2HEVY CHASE MD 20815 7 Met shon-tann OW Pe.00•9 C IRS Ceres where corporatbn led ran /la retore-tins sae doled a 1T -~År 111 ' ' ''''"'"' s' 4".<fr''f":”:"` ";r4 ' : lb Celocbtin91/09‘,Peffli fegi"v .• ;kt, %z31.";, ' .../ - :,laig.,.6Wel dilliallIng number Sc Unnicaplunid see- 1250 ern E Shareholders narre, address. city. slate, and ZIP code 9 Net section 1221 gain (lom) 10 Osier Inc:omegas) M mmtmerni&sesarditie 'BOGS SCARBOROUGH II A -375,516 F Shareholdra percentage of stock evimerad Icx tax year 5.0000% For IRS Use Only It Salon 179 deduction 16 Nett "cling saarorioider basis