FY2003-01 Fern B. Fuller Charitable Remainder UnitrustALAN L. SCHMITT
ATTORNEY AT LAW
ADMITTED TO ALASKA BAR
E-MAIL: alan�jesmkod.com
HAND DELIVER
04003-01 i9¢
JAMIN, EBELL, SCHMITT & MASON
A PROFESSIONAL CORPORATION
ATTORNEYS AT LAW
ANCHORAGE OFFICE:
1007 WEST THIRD AVENUE, SUITE 201
323 CAROLYN STREET
ANCHORAGE, ALASKA 99501
KODIAK, ALASKA 99615
TELEPHONE: (907) 278-6100
FACSIMILE: (907) 222-2760
Pat Carlson, Manager
Kodiak Island Borough
710 Mill Bay Road
Kodiak, Alaska 99615
Re: Fuller Trust Matters
Dear Pat:
TELEPHONE: (907) 486-6024
FACSIMILE: (907) 486-6112
REPLY TO KODIAK OFFICE
January 14, 2003
SEATTLE OFFICE:
300 MUTUAL LIFE BUILDING
605 FIRST AVENUE
SEATTLE, WASHINGTON 98104
TELEPHONE: (206) 622-7634
FACSIMILE: (206) 623-7521
With this letter I enclose the 2002 payment of $56,428 for the hospital from the Fern
B. Fuller Charitable Remainder Trust as well as a copy of the agreement signed by Ms.
Thackery and the computation sheet which shows how the payment was calculated.
Lastly, I also enclose a summary of the payments made to date by the trust.
I have reviewed the computations sheet and find it to be in order. So, please sign
the agreement and return it to me. If you have questions or need additional information,
please let me know.
Sincerely yours,
JAMIN, EBELL, SCHMITT & MASON
Alan L. Schmitt
Enclosures
cc: Gabrielle LeDoux, Mayor
Don Rush, CEO Kodiak Island Service Area
FAWP\CLIENTS\4702\245\245 P Carlson Itr 01.wpd
12/20/02 15:41 FAX 2638320 HUGHES THORSNESS IM 003 I�-t/ 7
AGREEMENT
FERN B. FULLER
CHARITABLE REMAINDER UNITRUST
This is an agreement between Patricia Thackery, Trustee of the Fern B. Fuller
Charitable Remainder Unitrust ("CRT"), and Kodiak Island Hospital and Care Center, as
beneficiary of the CRT.
1. 2002 CRT valuation. The parties agree that the fair market value of the
CRT assets for 2002 is $564,280, which may be used as the valuation pursuant to
paragraph 3 of the CRT. The valuation includes a valuation of the promissory note from
Fuller Boatyard, Inc., discounted to provide a rate of return of 20%.
2. 2002 Unitrust Payment. The CRT shall pay the Kodiak Island Hospital and
Care Center a Unitrust payment of $56,428 promptly upon execution of this Agreement
by all parties.
3. 2003 Pa3ment. Until and unless advised otherwise by the beneficiary, the
CRT may plan on making a 2003 Unitrust payment in the same manner and under the
same assumptions as the 2002 Unitrust payment described above. Before making any
payment for 2003, however, the CRT shall present a proposed stipulation to the
beneficiary regarding the 2003 Unitrust payment, and request its input and approval to
any such payment.
4. Investment of Trust Assets. The parties agree that the assets currently held
by the CRT constitute a prudent investment for the CRT.
Dated: r`59,36'y 2—
Patricia Thackery
Trustee of the Fern B. Fuller
Charitable Remainder Unitrust
Dated:
Kodiak Island Hospital and Care Center
vi
AGREEMENT (6296-3/180238) �1gSKA * �q%
12/20/02 15:42 FAX 2638320 HUGHES THORSNESS IM 004
Fern B. Fuller Charitable Remainder Unitrust
2002 Unitrust Payment
Cash available, as of December 2002
(approximate) $ 161,907
Annual Note Payments (present value of 4
payments, 20% rate of return) 194,155
Balloon payment (present value using 20% rate
of return) 208,218
Subtotal
2002 Unitrust Payment
2002 CHARITABLE REMAINDER UNITRUST PAYMENT
(6296-31180237)
$ 564,280
$ 56,428
qq4
FERN B. FULLER CHARITABLE REMAINDER UNITRUST
Payments Received by KIB/Kodiak Hospital
Date of check
Check number
Amount
Applied to year
12/26/96
318
$48,500
1996
1/29/98
378
$45,800
1997
1/12/99
405
$46,900
1998
12/28/99
478
$55,000
1999
12/27/00
488
$53,400
2000
12/21/01
501
$54,070
2001
12/30/02
512
$56,428
2002
$360,098
4702\245t.101
C_ Zpp �-pl x Pef
ASSIGNMENT AND ASSUMPTION AGREEMENT
In consideration of a termination of the Fern B. Fuller
Charitable Remainder Unitrust ("CRT"), and other valuable
consideration, the undersigned parties, PATRICIA THACKERY, AS
TRUSTEE OF THE FERN B. FULLER CHARITABLE REMAINDER UNITRUST
("Thackery"), and the KODIAK ISLAND BOROUGH, AS OWNER OF THE
KODIAK ISLAND HOSPITAL AND CARE CENTER ("Borough"), agree as
follows:
1. Effective as of court approval of termination of the
CRT, Thackery hereby assigns to the Borough all of her right,
title, and interest in that certain installment note dated
August 29, 1996, in the original principal sum of $900,000, in
which Fuller Boatyard, Inc. is the Payor, and Thackery is the
Payee.
2. Thackery also assigns to the Borough all of her right,
title, and interest in a deed of a trust which secures payment
of the installment note referred to above. Attached hereto as
Exhibit A is an Assignment of Beneficial Interest, in recordable
form.
3. Thackery assigns to the Borough all other assets and
rights of the CRT.
4.. The Borough agrees to assume all obligations of
Thackery under a 1995 Settlement Agreement between Thackery, the
Borough, and other parties, relating to the CRT.
5. The Borough agrees to pay to (or reimburse) Thackery
for all reasonable costs and expenses, including taxes, incurred
ASSIGNMENT AND ASSUMPTION AGREEMENT
(6216-31107069) Page 1 of 2
or assessed after the date of this Assignment, related to any
services or duties undertaken in good faith as trustee of the
-- - e Borough also agrees to defend, indemnify, and hold
harmless Thackery from any claims related to any services or
duties undertaken in good faith as trustee of the CRT. The
Borough's obligation to defend, indemnify, and hold harmless
shall be limited to the value of the above assets conveyed to
the Borough upon termination of the CRT.
Dated:
Sw
-Mn F IMAM
ASSIGNMENT AND ASSUMPTION AGREEMENT
(6216-31107069) Page 2 of 2
PATRICIA THACKERY, As Trustee
of the Fern B. Fuller
Charitable Remainder Unitrust
KODIAK ISLAND BOROUGH
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