5.1 ERMUSR 06-14-2022 - Laserfiche WebLink

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EMPLOYMENT AGREEMENT This EMPLOYMENT AGREEMENT (the “Agreement”), for an employment start date of July 18, 2022 (the “Start Date”), is entered into between Elk River Municipal Utilities, a Minnesota corporation (the “Utilities”) and Mark Hanson, a resident of Minnesota (“Employee”). RECITALS A. The Utilities desires to employ Employee in accordance with the terms of this Agreement. B. The Utilities and Employee desire to enter into this Agreement. AGREEMENT In consideration of the above recitals and the promises set forth in this Agreement, the Utilities and Employee agree as follows: 1. Nature and Capacity of Employment. The Utilities hereby agrees to employ Employee pursuant to the terms of this Agreement. As of the Start Date and through December 31, 2022, Employee’s title will be Deputy General Manager and he will report directly to the Utilities’s General Manager. Beginning January 1, 2023, Employee’s title will be General Manager and he will report directly to the Utilities Commission. Employee agrees to perform, or be available to perform, on a full-time basis, the functions of these positions and such other duties as assigned by the Utilities consistent with such positions. Employee’s employment is subject to the Utilities’s policies and practices except as otherwise explicitly provided in this Agreement; and to the continuing discretion of the Utilities Commission. 2. At-Will Employment. Employee’s employment with the Utilities will commence as of the Start Date and continue until terminated by either party as provided for in Section 6 below. Employee understands that Employee’s employment with the Utilities is at will and may be terminated by either the Employee or the Utilities for any reason at any time, with or without advance notice, subject to the provisions of Section 6, below. Under certain circumstances Employee may be eligible for severance benefits pursuant to Section 6. 3. Compensation. 3.1. Base Salary. As of the Effective Date, Employee’s annualized gross base salary will be One Hundred Seventy-Four Thousand Dollars ($174,000), which will be earned by Employee on a pro rata basis as Employee performs services for the Utilities and which salary will be paid in accordance with the Utilities’s regular payroll practices. Employee’s compensation is subject to review and change by the Utilities in its sole discretion from time to time. Employee’s compensation shall be subject to federal and state income tax withholding, FICA and Medicare and such other deductions as the Utilities is required by law, or believes in good faith it is required by law, to make. The position of General Manager is an exempt executive position under the Fair Labor Standards Act (FLSA) and the Minnesota Fair Labor Standards Act (MFLSA) and, in accordance with those laws, shall not be subject to the payment of premium compensation, or to receiving compensatory time, for overtime. 48943343v3 141