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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 B Y : Its: VAo-oa,q e.r ,frou9� Cl --'C ,SKA * q%