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WHEREAS, in furtherance of the issuance of the Bonds, the parties have entered into an <br />Agreement Regarding City Pension Obligation Bonds concurrently herewith, a copy of which is <br />attached hereto as Exhibit A. <br />NOW THEREFORE, the Council and the Board enter into this Agreement pursuant to <br />Section 107.003, as follows: <br />1. The recitals and terms of the Agreement Regarding City Pension Obligation Funds attached <br />hereto as Exhibit A, are incorporated into this Agreement as if set forth in full herein. <br />2. The City acknowledges and agrees that: <br />(a) upon the issuance of the Bonds and the funding of the 2022 UAAL, the City will <br />move all current Firefighters into the TMRS retirement program while preserving <br />the vested rights in the Fund of the 2022 Fund Beneficiaries: <br />(b) following the events described in Section 2(a) above, the City will (i) continue to <br />honor its funding obligations pursuant to the requirements of the Fund to the 2022 <br />Fund Beneficiaries and (ii) make provision for all current and future Firefighters to <br />participate in TMRS on the same basis as other City employees who participate in <br />TMRS; and <br />(c) the City will issue the Bonds and provide for the payment of the debt service on the <br />Bonds. <br />3. The Board acknowledges and agrees that: <br />(a) following the events described in Section 2(a) above, the Plan effective as of <br />October 1, 2022 provides only the 2022 Fund Beneficiaries shall be entitled to any <br />portion of the benefits of the Fund, in effect "freezing" the Fund for the 2022 Fund <br />Beneficiaries and foreclosing the Fund to any new participants not already provided <br />for under the Fund; and <br />(b) no further increases or substantive changes may be made to the Fund because the <br />Texas Local Fire Fighters Retirement Act, Article 6243e of Vernon's Civil Statutes <br />requires any change in benefit be approved by a majority of participating members <br />of the Fund and after the effective date of 2022 Plan there will be no participating <br />members; and <br />(c) upon final payout to the last person qualifying as a 2022 Fund Beneficiary, any <br />remaining amounts in the Fund shall be allocated in accordance with applicable State <br />law. <br />4. This Agreement may be amended only by a written instrument executed by the parties <br />hereto. This Agreement may be executed in one or more counterparts, each of which will <br />be deemed an original, but all of which together will constitute one and the same <br />agreement. <br />