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06ESCROW DEPOSIT AGREEMENT THIS ESCROW DEPOSIT AGREEMENT the Agreement is made and entered into as of November 222016 by and between KODIAKISLAND BOROUGH ALASKA the Borough second-class borough oftheStateof Alaska and THEBANK OF NEW YORKMELLON TRUST COMPANY N.A national banking association having corporate trust office in San Francisco California the Escrow Agent WHEREAS the Borough now has outstanding its $15880000 principal amount Long-Term Care Center Revenue Bond Series 2013 Providence Kodiak Island Medical Centerthe Bond maturing on June 2033 with principal installments due on June of each ofthe years 2017 through 2033 inclusive and WHEREAS pursuant to Resolution No FY2016-19 of the Borough adopted on November 2015 the Borough wishes to defease portion of the principal installments of the Bond due in each of the years 2025 through 2030 inclusive the 2018 Defeased Portion and the Borough wishes to defease portion of the principal installments ofthe Bond due in each of the years 2017 through 2024 inclusive and 2031 through 2033 inclusive the 2023 Defeased Portion and together with the 2018 Defeased Portion the Defeased Portion and WHEREAS the defeasance of the Defeased Portion will be accomplished pursuant to this Agreement including Exhibit attached hereto by The delivery by the Borough to the Escrow Agent ofcertain proceeds ofthe Bond The delivery by the Loan Trustee for the Bond of certain money on deposit in the Reserve Subaccount that secures payment of the Bond The purchaseby the Escrow Agent of the noncallable direct obligations of the UnitedStates of America listed on Exhibit attached hereto and made part hereof by this reference the Acquired Obligations or substituted obligations purchasedpursuant to Section on the date of this Agreement The delivery to the Borough and the Escrow Agent of report the Report by Causey Demgen Moore P.C showing that the AcquiredObligations to be purchased by the Escrow Agent pursuant to this Agreement together with the specified beginning cash balance if any and the maturing principal of and interest on such Acquired Obligations will provide sufficient money assuming that ah principal of and interest on the AcquiredObhigations are paid on the due dates thereof and assuming no reinvestment of such maturing principal and interest to pay interest on the 2018Defeased Portion when due up to and including June 2018 and on June 2018 to prepay the 2018Defeased Portion and iito pay 513778334 interest en the 2023Defeased Portion when due up to and including June 2023 and Qn June 2023 to prepay the 2023Defeased Portion and The receipt by the Escrow Agent ofthe maturing installments of principal of and interest on the Acquired Obligations and TheEscrow Agents payment to theAlaska Municipal Bond Bank the Bond Bank of money sufficient to make the payments on the Defeased Portionset forth herein together the Defeasance Plan and WHEREAS upan the execution of this Agreement and the delivery to the Escrow Agent ofcertain proceeds of the Bond and certain money on deposit in the Reserve Subaccount that secures payment of the Bond the principal amount ofthe Defeased Portion no longer shall be considered outstandingpursuant to Section 21 of Resolution No FY2013-13 whichauthorized the issuance of the Bond the Bond Resolution and WHEREAS the Borough Assembly has duly and validly authorized the execution and delivery of this Agreement the delivery to the Escrow Agent ofcertain proceeds of the Bond other money ofthe Borough and certain money on deposit in the Reserve Subaccount that secures payment of the Bondand the purchase by the Escrow Agent ofthe Acquired Obligations NOW THEREFORE in consideration ofthe mutualcovenants hereinafter contained and for thebenefitofthe Borough the parties hereto agree as foliows Section Delivery of Money to Escrow Acient On the date of this Agreement the Borough shall cause to be delivered to the Escrow Agent certain proceeds of the Bond in the amount of $4529 156.85TheEscrow Agent inits capacity as Loan Trustee underthe ReserveAccount Agreement between the Borough and the Loan Trustee dated June 192013 is hereby authorized and directed to deliver to the Escrow Agent $363612.50 of money on deposit in the Reserve Subaccount that secu res payment ofthe Bond Sectionlnvestment and Expenditure of Money On the date of this Agreement the Escrow Agent shall apply $4892769.00 to pay on behalf of the Borough the purchase prices of the Acquired Obligations from the sources in the principal amounts withthe dates of maturity and bearing theinterest rates or yields set forth in ExhibitA and $0.35 to establish beginning cash balance Upon receipt thereof the Escrow Agent shalldeliver to the Borough copies of the documents evidencing the purchase of and payment for the Acquired Obligations lnvestments in mutualfunds and unit investment trusts are prohibited If the Escrow Agent learnsthat the Department of the Treasury or the Bureau oftheFiscal Service will not for any reason accept subscription ofstate and local government series securities SLGS that is to be submitted pursuant to this Agreement the Escrow Agent shall promptly request alternativewritten investment instructions from the Borough with respect to 13 77833 .4 fundswhich were to be invested in SLGS TheEscrow Agent shallfollow such instructions and upon the maturity of any such alternative investment the Escrow Agent shall hold suchfundsuninvested and without liability for interest until receipt of further writteninstructions from the Borough In the absence of investment instructions from the Borough the Escrow Agent shall not be responsible for the investment of such funds orinterest thereon The Escrow Agent may conclusively rely upon the Boroughs selectionof an alternative investment as determination ofthealternative investments legality and suitability and shall not be hable for any Iosses related to thealternative nvestments or for compliance with any yield restriction apphicable thereto Section Sufficiency of AcguiredObhiqations Based upon the Report the Borough represents thatthe AcquiredObligations and the maturing principal thereof and the interest thereon if paid when due together with the beginning cash balance shahl be sufficient to makewhen due the payments required by the Defeasance Plan The schedules ofthe sourcesamounts maturities and interestratesor yields of the AcquiredObhigations and ofthe Defeased Portionthat wihl fulfilh the foregoing requirements are set forth in the Report Section Cohlection of Proceeds of AcguiredObhiqations and Application of Such Proceeds and Money The Escrow Agent shall present for payment and shall collect and receive on the due dates thereof the maturing instahlmentsofthe principal of and the interest on the Acquired Obligations and any Substitute Obligations defined herein The Escrow Agent shall make payments but only in the amounts received pursuant to this Section in timely manner to the BondBank ofthe amounts to be paid on the Defeased Portion as shown in the Report Those payments shall be made by check wire transfer or such other method of transfer of funds as shall be agreed upon by the Escrow Agent and the Bond Bank SectionNotice of Defeasance/Notices of Prepayment The Escrow Agent agrees to give to the Bond Bank notice of defeasance and noticesof prepayment of the Defeased Portion pursuant fo the terms ofthe Bond Resolution and the Loan Agreement dated as of June2013 the Loan Agreement between the Borough and the Bond Bank The noticeof defeasance in substantially the formattachedhereto as and as described in Exhibit shall be given immediately foliowing the execution of this Agreement The noticeof prepayment of the 2018Defeased Portion in substantially the form attachedhereto as and as described in Exhibit shahl be given shall be given not less than 50 days nor more than 60 days prior to June 2018 The notice of prepayment of the 2023Defeased Portion in substantially the form attachedhereto as and as described in Exhibitshall be given shall be given not less than 50 days nor more than 60 days prior to June 2023 Section Ah Obhiqations and Money and Proceeds Thereof HeId in Trust The Escrow Agent irrevocabhy agrees to holdthe AcquiredObhigations the Substitute Obhigations if any the principal thereof and interest thereon and any other money it may receive pursuant fo this Agreement and any reinvestments thereof made pursuant to Sections and in trust and separate at ah times from ah other funds and investments hehd by the Escrow Agent sohehy for the purpose of making the payments 13 77833 .4 required by the Defeasance Plan The Borough irrevocably conveys transfers and assigns tothe Escrow Agent the Acquired Obligations any Substitute Obligations the principal thereof and the nterest thereon and any other money and investments deposited withthe Escrow Agent pursuant to this Agreement for the purpose of making such payments The Escrow Agent shall not selltransfer assign or hypothecate any Acquired Obligations reinvestments or Substitute Obligationsexceptpursuant to Sections 12 and 14 Section Reports The Escrow Agent shall submit report to the Borough at least semiannually which report shallsetforth the cash Acquired Obligations and any Substitute Obligations held hereunder by the Escrow Agent the obligations which have matured and amounts received by the Escrow Agent by reason of such maturity theinterest earned on such obligations list of any investments or reinvestments made by the Escrow Agent in other obligations and the interest and/or principal derived therefrom the amounts paid to the Bond Bank and any other transactionofthe Escrow Agent pertaining to its duties and obligations as setforth herein Section SubstitutionofDifferent Obliqations or Other lnvestments The Borough reserves the right tosubstitute from time to time for Acquired Obligations initially purchased in accordance with Section or for obligations purchased under this Section other noncallable nonprepayable direct obligations of the UnitedStates of America and/or obligationsunconditionally guaranteedby the UnitedStates of America as to fulI and timely payment of principal and interest the Substitute Obligations Prior to effecting any such substitution the Borough shall have obtained at its expense and delivered tothe Escrow Agent verification by nationally recognizedindependent certified public accounting firm acceptable to the Escrow Agent confirming that the maturing principal of and interest on the Substitute Obligations and any remainingAcquired Obligations to be held by the Escrow Agent in the escrow account if paid when dueand assuming no reinvestment thereof together with any other cash then heid by the Escrow Agent will be sufficientto carry outthe Defeasance Plan and make all remaining payments required by the Defeasance Plan and An opinion from Foster Pepper PLLC bond counsel tothe Borough its successor or other nationaily recognized bond counsel tothe Borough Bond Counsel that the disposition and substitution or purchase of such securities under the statutes rules and regulations then in force and applicable to the Bond will not cause theinterest on the Bond to be included in gross income for federal income tax purposes and that such disposition and substitutionor purchase isin compliance with thestatutes and regulationsapplicable to the Bond If the verificationdelivered to the Escrow Agent pursuant to Section 8a shows that surplus money not needed to make the payments required by the Defeasance Plan will result from the sale transfer or other disposition of AcquiredObligations and the 13 77833 .4 substitutionofSubstitute Obligations therefor that surplus money at thewritten request of the Borough shall be released by the Escrow Agent and shall be transferred to the Borough to beused for any lawful Borough purpose subject to any restrictionsstated in the opinion of Bond Counsel required by Section 8b SectionReinvestment of Proceeds ofAcciuired and/or Substitute Obliqations The proceeds principal and interest and reinvestment proceeds of any AcquiredObligations and/or Substitute Obligations held by the Escrow Agent in accordance with this Agreement that are not needed within five business days of the receipt thereof to make the payments required by the Defeasance Plan shall be reinvested by the Escrow Agent but only upon receipt ofwritten request ofthe Borough onsuch date of receipt orthe nextbusiness day The Borough shalldirect such reinvestment subject to the following conditions Except as provided in subsection below the proceeds of such AcquiredObligations and/or Substitute Obligations shall be reinvested in Substitute Obligations at yield that will not cause the composite yield on the escrow account to exceed2.8194%during its term or such higher yield as may be directed by letter ofinstructions from the Borough to the Escrow Agent but if the composite yield on the directed nvestments made pursuant to this Agreement would exceed 2.8194% such letter ofinstructionsshallcontainverificationof such composite yield and shall be based upon and accompanied by the opinion of Bond Counsel approving reinvestment of such proceeds at such higher yield The obligations in which such proceeds are reinvested shall mature in an amount at least equal to their purchase price on the date or dates directed by the Borough butnot later than the date as shown by thethen most recent certified public accountant verification the principal thereof is needed to make the payments required by the Defeasance Plan If such proceeds together withother funds remaining in the escrowaccount are insufficient to reinvest in the smallest denomination of such obligations or arerequired to be used to make payments required by the Defeasance Plansoonerthan the shortest maturity available for such obligations thenthose proceeds and funds eithershall be converted to UnitedStates currency and retained or shall remainuninvested in the escrow account and carried on the books ofthe Escrow Agent until required to make the payments required by the Defeasance Plan or until sufficient money is accumulated to permit theinvestment thereof Yield as used in subsection aboye with respect tothe AcquiredObligations and Substitute Obligations means that yield computed in accordance with and permittedby the Code applicable tothe Bondand the escrow account under this Agreement so as to preserve the exclusion from gross income for federal income tax purposes of the nterest on the Bond and 51377833.4 TheEscrow Agent prior to making such reinvestment shall receive verification by nationally recognizedindependent certified public accounting firm confirming that after such reinvestment the assets and funds held by the Escrow Agent pursuant to this Agreement will be sufficient to carry out the Defeasance Plan and make ah remaining payments required by the Defeasance Plan and an opinion from Bond Counsel that such reinvestment wihl not cause theinterest on the Bond to be included in gross income for federal income tax purposes It is understood and agreed thatthe Escrow Agent shall have no responsibility or duty for monitoringcompliance with subsections and of this Section The Escrow Agent may make any and alI investments permitted by the provisions of this Section through its own nvestment department or the investment departments of any of its affiliates Section 10Amendments to Agreement TheEscrow Agent and the Borough recognize that the Bond Bank as owner ofthe Bond has beneficialinterest in the Acquired Obligations the Substitute Obligations and money to be held by the Escrow Agent as herein provided Therefore this Agreement is irrevocable and shall not be subject to amendment except for the purpose of clarifying any ambiguity herein increasing the protection ofthe rights of the Bond Bank as owner ofthe Bond or preserving theexclusion of the interest on the Bond from gross income for federal income tax purposes and only if such amendment is accompanied by an opinion addressed to the Borough and the Escrow Agent from Bond Counsel totheeffectthat such change is necessary for one ofthe aboye reasons and does not detrimentally affectthe Bond Bank as owner ofthe Bond orthat it strengthens the protection of the Bond Bank as owner of the Bond and does not detrimentally affect the Bond Bank as owner ofthe Bond If such amendment affectsthe amount of money and investments un the escrow account or the application thereof prior to the amendments taking effect therealsoshall be dehiveredto the Escrow Agent verification by nationally recognizedindependent certified pubhic accounting firm satisfactory to the Escrow Agent to the effectthatafter such amendment the AcquiredObhigations Substitute Obligations and other money in the escrow account will be sufficient to make the payments required by the Defeasance Plan and if such amendment affects the application ofthe funds in the escrow account an opinion of Bond Counsel to the effect that such amendment will not cause interest on the Bond to be includible in gross income for federaltax purposes Section 11 Limitationof Liabihity of Escrow Agent None of the provisions contained in this Agreement shall require the Escrow Agent to risk use or advance its own funds un the performance of any of its dutiesor theexercise of any of its rights or powers hereunder TheEscrow Agent shahl be under no hiabihity for the payment of interest on any funds or other property received by it hereunder except to theextent the Escrow Agent is required by the express terms of this Agreement to invest such funds 51377833.4 TheEscrow Agents liabilities and obligations in connection with this Agreement are confined to those specifically described herein and no implied covenants or obligations shall be read intothis Agreement against the Escrow Agent TheEscrow Agent is authorized and directed to comply withthe provisions of this Agreement and is relieved from ah liability for so doingnotwithstanding any demand ornotice to the contrary by any party hereto The Escrow Agent shahl not be responsible or hable for the sufficiency correctness genuineness or vahidity ofthe Acquired Obligations or the Substitute Obhigations deposited with it the performance or comphianceby any party otherthanthe Escrow Agent with the terms or conditionsof any such instruments or any loss which may occur by reason of forgeries false representations or the exercise ofthe Escrow Agents discretion in any particular manner unless such exercise is neghigent or constitutes wihlful misconduct If any controversy arises between the Borough and any third person the Escrow Agent shall not be required to determine the same or to take any action in the premises but it may institute inits discretion an interpleader or other proceedings in connection therewith as it may deem proper and in fohiowing either course it shahl not be hable The Escrow Agent may conclusively rely and shahl be fuhhy protected in acting or refraining from acting upanany resolutioncertificate statement instrument apinion report notice request consent arder approval or other paper or document behieved by it to be genuine and to havebeen signed or presentedby the proper party or parties The Escrow Agent shall not be bound to make any investigation into the factsor matters stated in any resolution certificate statementinstrument opinionreport notice request consent entitlement arder approval or other paper or document The Escrow Agent may consult with counsel and shall be entithed to rely on the advice or any opinion of counseh provided that prior to relying onsuch counsehs opinion the Escrow Agent shahl provide copy ofthe apinion to the Borough and its bond counsel unless such opin ion is rendered by Bond Counsel TheEscrow Agent may execute any ofthetrusts or powers hereunder or perform any duties hereunder either directhy or by or through agents attorneys custodians or nominees appointed with due care Neither the Escrow Agent nor any of its officersdirectors employees or agents shahl be hable for any action taken or omittedunder this Agreement or in connection herewith except to the extent caused by the Escrow Agents neghigence or willfuh miscond uct Ahh communication from the Borough to the Escrow Agent shall be by hetter sent by regular mail or in PDF format and not by unsecured emaih facsimihe transmission or other similar unsecured ehectronic methods Section 12 Remittance of Funds When Defeased Portion Paid in Fuhh At such timeas the Escrow Agent hasreceived the representation ofthe Borough that alI of the payments required by the Defeasance Plan have been made and the confirmationof such representationby the Bond Bank together with suchother evidence of such payments as shahl be satisfactory to the Borough and the Escrow Agent the Escrow 51377833.4 Agent shalldeliver forthwith or remit to the Boroughany remainingAcquired Obligations Substitute Obligations and money heid pursuant to this Agreement Section 13 Compensation of Escrow Agent The payment arrangement heretofore made between the Escrow Agent and the Borough on compensation and expenses ofthe Escrow Agent for servicesrendered by it pursuant to the provisions of this Agreement is satisfactory to it and tothe Borough and no further payment to the Escrow Agent shall be required for such purpose except to reimburse the Escrow Agent for outof pocket expenses incurred by the Escrow Agent hereunder including without limitation legal fees and expenses Such arrangement for compensation and expenses is intended as compensation for the ordinary services as contemplated by this Agreement and if the Escrow Agent renders any service hereunder not provided for in this Agreement or the Escrow Agent is made party to or intervenes in any litigation pertaining to this Agreement or institutes interpleader proceedings relative hereto the Escrow Agent shall be compensated reasonably by the Borough for such extraordinary services and reimbursed for alI fees costs liability and expenses including reasonable attorneys fees and expenses occasioned thereby TheEscrow Agent shall not have lien against or otherwise be compensated for its services and expenses from the money Acquired Obligations and Substitute Obligations held pursuant to this Agreement to make the payments required by the Defeasance Plan Section 14 SuccessorEscrow Agent The obligations assumed by the Escrow Agent pursuant to this Agreement may be transferred by the Escrow Agent to successor if the Borough approves the appointment of the successor the successor has assumed alI ofthe obligations ofthe Escrow Agent under this Agreement and has been compensated and alt ofthe Acquired Obligationsreinvestments Substitute Obligations and money then heid by the Escrow Agent pursuant to this Agreement have been duly transferred to such successor If successor is not appointed within 30 days afterthe Escrow Agents giving noticeof its resignation or its removal the Escrow Agent shall be entitled to petition courtof competent jurisdiction for the appointment of successor Notwithstandinganything to the contrary contained in this Agreement any company into which the Escrow Agent may be merged or converted orwith which it may be consolidated or any company resulting from any merger conversion or consolidation to which the Escrow Agent is party or anycompany to which the Escrow Agent may seli or transfer ah or substantiahly alt of its corporate trust business shahl be the successor tothe Escrow Agent withoutexecution or fihing of anypaper or further act Section 15 Miscellaneous This Agreement is governed by Alaska Iaw without regard to the confhict of laws provisions thereof and may not be modified except by writing signed by the parties and subject to the limitations of Section 10 If any one or more ofthe provisions contained in this Agreement shall for any reason be held to be invalidillegal or unenforceable in any respect such invahidity illegality or unenforceabihity shall not affect any other provisions of this Agreement but this 5377833.4 Agreement shall be construed as if such invalid illegal or unenforceable provision had never been contained herein page foliows 13 7833 .4 Section 16 Counterparts This Agreement may be executed in counterparts IN WITNESS WHEREOF the parties haveexecuted and delivered this Agreement pursuant to dueand proper authorization aH as of the dateand year first aboye written KODIAK ISLAND BOROUGH ALASKA THE BANKOF NEW YORK MELLON TRUST COMPANY N.A as Escrow Agent By By Dora Cross Finance Director Titie lo 513778334 Section 16 Counterparts This Agreement may be executed in counterparts IN WITNESS WHEREOF the parties haveexecutedand delivered this Agreement pursuant to due and proper authorization ah as of the dateand year first aboye written KODIAK ISLAND BOROUGH ALASKA THE BANKOF NEW YORK MELLON TRUST COMPANY N.A asEscrow Agent By C.C1.Y-By Dora Cross Finance Director Titie lo 5137783 .4 Section 16 Counterparts This Agreement may be executed in counterparts IN WITNESS WHEREOF the parties haveexecuted and delivered this Agreement pursuant to dueand proper authorization ah as of thedate and year first aboye written KODIAK ISLAND BOROUGH ALASKA By Dora Cross Finance Director 10 THEBANKOF NEW YORK MELLON TRUST COMPANY N.A asEscrow Agent By Titie 51377833.4 EXHIBIT KODIAK ISLAND BOROUGH ALASKA LONG-TERMCARECENTERREVENUE BOND SERIES 2013 PROVIDENCE KODIAKISLANDMEDICAL CENTER ACQUIRED OBLIGATIONS MATURITYPRINCIPALINTEREST PURCHASE TYPE DATE AMOUNT RATE PRICE CERT 6/01/2017 236722 0.59%100% NOTE 12/01/2017 65580 0.75 100 NOTE 6/01/2018 1990825 0.85 100 NOTE 12/01/2018 27961 0.96 100 NOTE 6/01/2019 218095 1.09 100 NOTE 12/01/2019 26434 1.22 100 NOTE 6/01/2020 221595 1.33 100 NOTE 12/01/2020 24169 1.43 100 NOTE 6/01/2021 229341 1.53 100 NOTE 12/01/2021 21996 1.63 100 NOTE 6/01/2022 237175 1.73 100 NOTE 12/01/2022 18852 1.83 100 NOTE 6/01/2023 1574024 1.91 100 CERT UnitedStates Treasury Certificateof lndebtedness State and Local Government Series NOTE UnitedStates Treasury Note State and Local Government Series 51377833.4 EXHIBIT Notice of Defeasance Kodiak Island Borough Alaska Long-Term CareCenter Revenue Bond Series 2013 Providence Kodiak IslandMedical Center NOTICE IS HEREBY GIVEN to the Alaska Municipal Bond Bank as owner of the above-referenced bond that pursuant to the Escrow Deposit Agreement dated November 22 2016 by and between Kodiak Island Borough Alaska the Borough andTheBank of New YorkMellon Trust Company N.A the Escrow Agent there havebeen deposited into an escrowaccount held by the Escrow Agent cash and non callabledirect obligations ofthe United States of America the principal of and interest on which when due as evidenced by the verification report delivered to the Escrow Agent will provide money to pay each year to and including the prepayment dates of the portions of principal installments of such bond so provided for the principal thereof and interest thereon the Defeased Portion TheDefeased Portion is therefore deemed to beno longeroutstandingpursuant to Section 21 of Resolution No FY2013-13 of the Borough but will be paid by application ofthe assets in such escrow account TheDefeased Portion is described as follows lnstallment Date Amount lnterest Prepayment Date June Defeased Rate at 100% 2017 $170000 4.00%Junel2023 2018 180000 3.00 June 12023 2019 190000 3.00 Junel2023 2020 195000 4.00 Junel2023 2021 205000 4.00 June 2023 2022 215000 5.00 June2023 2023 225000 5.00 June2023 2024 245000 5.00 Junel2023 2025 250000 5.00 Junel2018 2026 270000 5.00 Junel2018 2027 280000 5.00 Junel2018 2028 300000 5.00 June 2018 2029 310000 5.00 June2018 2030 335000 5.00 June2018 2031 350000 5.00 June2023 2032 360000 3.625 Junel2023 2033 375000 3.75 Junel2023 TheBank of New York MellonTrust Company N.A as Escrow Agent Dated ___________________________ 51377833.4 EXHIBIT Notice of Prepayment Kodiak Island Borough Alaska Long-Term CareCenter Revenue Bond Series 2013 Providence Kodiak IslandMedical Center NOTICE IS HEREBY GIVEN that Kodiak Island Borough Alaska the Borough will prepay portion of the outstanding principal installments ofthe above-referenced bond the Defeased Portion as described below The Defeased Portion will be prepaid at price of one hundred percent 100% of the principal amountto be prepaid plus accrued interest ifany to June 12018 The Defeased Portion will be paid in accordance withthe terms of Resolution No FY2013-13 ofthe Borough and the Loan Agreement dated as of June2013 the Loan Agreement between the Borough and the Alaska Municipal Bond Bank lnterest on the Defeased Portionthat is prepaid will cease to accrue on June 2018 The following Defeased Portion is being prepaid lnstallment Date Amount lnterest June Prepaid Rate 2025 $250000 5.00% 2026 270000 5.00 2027 280000 5.00 2028 300000 5.00 2029 310000 5.00 2030 335000 5.00 By Order of Kodiak Island Borough Alaska The Bank of New York MellonTrust Company N.A as Escrow Agent Dated _______________________ 51377833.4 EXHIBIT Notice of Prepayment Kodiak Island Borough Alaska Long-Term CareCenter Revenue Bond Series 2013 Providence Kodiak IslandMedical Center NOTICE IS HEREBY GIVEN that Kodiak Island Borough Alaska the Borough will prepay portion of the outstanding principal installments ofthe above-referenced bond the Defeased Portion asdescribed below The Defeased Portion will be prepaid at price of one hundred percent 100% ofthe principal amount to be prepaid plus accrued interest if any to June 2023 The Defeased Portion will be paid in accordance with the terms of Resolution No FY2O1 3-13 of the Borough and the Loan Agreement dated as of June2013 the Loan Agreement between the Borough and the Alaska Municipal Bond Bank lnterest on the Defeased Portionthat is prepaid will cease to accrue on June 2023 The foliowing Defeased Portion is being prepaid lnstallment Date Amount lnterest June Defeased Rate 2017 $170000 4.00% 2018 180000 3.00 2019 190000 3.00 2020 195000 4.00 2021 205000 4.00 2022 215000 5.00 2023 225000 5.00 2024 245000 5.00 2031 350000 5.00 2032 360000 3.625 2033 375000 3.75 By Order of Kodiak Island Borough Alaska The Bank of New York MellonTrust Company N.A as Escrow Agent Dated _______________________ 51377833.4