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AG 94-078 AG G71 - TV CITY OF FEDERAL WAY JOINDER AGREEMENT THIS AGREEMENT entered into between the City of Federal Way, Washington, a Washington municipal corporation; First Interstate Bank of Washington, N.A. , a National Banking Association, Trustee; and the Trust Committee of the Municipal Employees' Benefit Trust: W I T N E S S E T H: WHEREAS, the City of Federal Way has agreed that certain benefits will be provided to the employees in lieu of coverage under the Federal Old Age, Survivors, Disability and Health Insurance Act; and WHEREAS, the City of Federal Way Employees' Retirement System ( "Plan" ) , to which the City of Federal Way, as Employer, and the City Manager, Kenneth Nyberg, the Management Services Director, Marie Mosely, and the Human Resources Manager, Mary McDougal, as Trustees, are signatories, was designed and adopted effective June 1, 1990, to provide those benefits; and WHEREAS, the City of Federal Way and the Federal Way Plan Committee have decided that the assets and the future contributions to the Plan can best be managed and invested according to the terms of the Municipal "Employees' Benefit Trust ( "Trust" ) established on October 1, 1972, and restated effective January 1, 1988; and WHEREAS, the City of Federal Way acknowledges that the Investment Advisory Committee has adopted a rule, ratified by the Trust Committee, in writing, under Article VI of the Trust to permit a Participating Employer to designate a member to sit on the L:\WPDOCS\40004\001\00911.AGM 1 ORIGINAL Investment Advisory Committee but the position shall be nonvoting until the Participating Employer has at least a 5% interest in the invested assets of the Trust. Such interest shall be determined by the Trust Committee. The Trust will be amended to incorporate the rule at a future restatement if the Trust Committee determines such action is necessary. WHEREAS, the City of Federal Way represents that its Plan is qualified under Internal Revenue Code of 1986, as amended ( "Code" ) Section 401 (a) and the current trust is exempt from tax under Code Section 501 (a) , a favorable determination letter being issued by the Internal Revenue Service on September 23, 1991, and that the Plan Committee is not aware of any action in the operation of the Plan that would jeopardize its qualification. WHEREAS, the City of Federal Way has requested permission from the Trust Committee of the City of Bellevue and the Trustee to become a Participating Employer in the Municipal Employees' Benefit Trust as that term is defined in section 2 . 06 of the Trust Agreement; and WHEREAS, the Trust Committee of the City of Bellevue and the Trustee have agreed to permit the City of Federal Way to become a Participating Employer in the Municipal Employees' Benefit Trust; and WHEREAS, the City of Federal Way and the Federal Way Plan Committee accordingly agree that the Plan assets and contributions should be paid over to the Trustee to permit the Plan to be so administered; and L:\WPDOCS\40004\001\00911.AGM 2 WHEREAS, the City of Federal Way agrees to pay its allocable share of reasonable expenses connected with the management of the assets and contributions made under the terms of the Plan and administered under the terms of the Trust; and WHEREAS, First Interstate Bank of Washington, N.A. , agrees to accept, manage and invest the assets and contributed funds under the terms of the Plan and Trust with reasonable expenses allocable thereto to be paid by the City of Federal Way; NOW, THEREFORE, it is agreed as follows: That the City of Federal Way Employees' Retirement System, effective April 1, 1994, be attached to and administered under the terms of the Municipal Employees' Benefit Trust established on January 1, 1972 and restated effective January 1, 1988, with the allocable share of reasonable expenses incurred by the Trustee to be paid by the City of Federal Way from its contributions made pursuant to Article 3 of the Plan. That by its execution of this Joinder Agreement, the City of Federal Way amends and restates its current Plan and adopts and agrees to be bound by all provisions, conditions and limitations of the Municipal Employees' Benefit Trust as amended from time to time, including the provisos above, and as if the City of Federal Way were a signatory to that Trust Agreement. That the City of Federal Way shall be a "Participating Employer" as defined in section 2 . 06 of that Trust Agreement. The City of Federal Way Employees' Retirement System shall conform at all times to the requirements of the Internal Revenue L:\WPDOCS\40004\001\00911.AGM 3 Code applicable to plans qualified under Internal Revenue Code Section 401 (a) . The adoption of the Plan by Federal Way is expressly contingent upon obtaining a determination letter from the Internal Revenue Service that the adoption of the Plan and Trust by the City of Federal Way does not impair the Plan and Trust's qualification under the Internal Revenue Code. IN WITNESS WHEREOF, the par ies to this Agreement have executed this Agreement this / "day of March, 1994. CITY OF FEDERAL WAY GBy: /_iii` � �.� Its: ,/�//ice . TRUST COMMITTE / / By: / _ % ,1 .� _ Its: FIRST INTERSTATE BANK OF WASHINGTON, N.A. By: etA:1-y121.A.4-614(4-2 . T Its: 4-�1J L:\WPDOCS\40004\001\00911.AGM 4