adding properties to classes using extend() and include()

[andrea jackson]

Can anyone please explain to me what is happening in the following code? I understood the meaning of include() and exclude() but when and why do we use the specific function?

var Class = function () {
    var klass = function () {
        this.init.apply(this, arguments);
    };

    klass.prototype.init = function () {};

    klass.fn = klass.prototype;
    //shortcut to access class
    klass.fn.parent = klass; //where do we use it?

    //adding class properties
    klass.extend = function (obj) {
        var extended = obj.extended; //what is happening here?
        for (var i in obj) {
            klass[i] = obj[i];
        }
        if (extended) extended(klass) //didn't understand this part
    };
    //adding instance properties
    klass.include = function (obj) {
        var included = obj.included; //??
        for (var i in obj) {
            klass.fn[i] = obj[i]; //??
        }
        if (included) included(klass) //??
    };
    return klass;
};

var Person = new Class; // is this same as: var Person = new Class();