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MASTER AGREEMENT FOR ARBITRAGE MONITORING SERVICES <br />City of Gem Lake <br />4200 Otter Lake Rd <br />White Bear Lake, MN 55110-3227 <br />Effective as of August 1, 2018 <br />For the following Obligation <br />$660,000 General Obligation Improvement Bonds, Series 2018A <br />With a Closing Date of July 12, 2018 <br />Ehlers & Associates, Inc. ("Ehlers") and the City of Gem Lake, Minnesota ("Client") do hereby mutually <br />agree to the following with regard to the provision of arbitrage monitoring services. In consideration of the <br />mutual promises and covenants contained herein, and for other good and valuable consideration, it is agreed <br />by and between Ehlers and Client as follows: <br />The above referenced obligation is subject to the arbitrage provisions of the Internal Revenue Code of 1986 <br />and related Treasury regulations. To comply with the statute and regulations the Client must undertake <br />certain calculations. Ehlers will provide certain arbitrage monitoring services for all funds related to this <br />obligation to assist the Client in complying with the arbitrage provisions, all as more particularly described <br />in this Agreement. <br />EHLERS RESPONSIBILITIES - SCOPE OF SERVICES <br />Ehlers agrees to provide the following services to Client: <br />Review the following documents: <br />a. Information Return for Tax -Exempt Governmental Obligations (Form 8038-G) <br />b. Arbitrage Certificate <br />c. Official Statement <br />d. Addendum to Official Statement, if any <br />e. Closing Memorandum, if any <br />f. Post Sales Report, if any <br />g. Verification Report, if any <br />h. Prior Arbitrage Calculation, if any <br />i. Trust Indenture, if any <br />J. Credit Enhancement Agreement, if any <br />2. Calculate the Client's arbitrage liability under Section 148(f) of the Internal Revenue Code of 1986, as <br />amended and applicable Treasury regulations in connection with this obligation, including: <br />a. Obtain nonpurpose investment transaction data for all funds related to this obligation <br />b. Review and analyze nonpurpose investment transaction data as required based on the <br />aforementioned documents <br />c. Compute/verify the amount of spend -down penalties payable to the IRS for obligations <br />applying such provisions <br />d. Confirm the arbitrage yield <br />e. Compute/verify the amount of excess earnings, if any, on nonpurpose investments and <br />the value of those earnings as of the applicable computation date <br />