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<br />SECTION 3 - TERMS OF EMPLOYMENT <br /> <br />EMPLOYEE will serve "at will" as City Administrator for the CITY for an indefinite term, in accordance <br />with the City Ordinances. <br /> <br />EMPLOYEE may resign from her position as City Administrator at any time, and give forty five (45) <br />calendar days advance written notice to the City Council, unless otherwise agreed to by the EMPLOYEE <br />and the CITY. <br /> <br />SECTION 4 - TERMINATION PAY UPON TERMINATION <br /> <br />In the event EMPLOYEE is terminated because of her conviction for an illegal act involving personal <br />gain to EMPLOYEE, or is immediately terminated for any violation ofthe terms in the Personnel Policy, <br />then the CITY shall have no obligation to pay the termination benefits. <br /> <br />In the event that EMPLOYEE is terminated by the CITY, the CITY agrees to pay EMPLOYEE a cash <br />payment equal to six (6) months aggregate salary at her then current salary, total unpaid accrued vacation <br />leave, and one-third (1/3) unused accrued sick leave. Payment of the six (6) months salary is conditioned <br />upon EMPLOYEE signing a release of claims. <br /> <br />If the CITY at any time during the employment term reduces the salary or other financial benefits of <br />EMPLOYEE in a greater percentage than across-the-board reduction for all employees, or if the CITY <br />refuses, following written notice, to comply with any other provisions of this Agreement benefiting <br />EMPLOYEE, or EMPLOYEE resigns following a formal suggestion by a majority ofthe City Council <br />that she resign, then EMPLOYEE may, at her option, be deemed to be terminated on the effective date of <br />EMPLOYEE'S resignation and the EMPLOYEE shall be entitled to receive the termination benefits set <br />forth above. <br /> <br />If EMPLOYEE voluntarily resigns her position with the CITY, there shall be no termination pay. <br /> <br />Upon discharge or resignation for any reason, EMPLOYEE shall be entitled to payment in the amount of <br />the EMPLOYEE'S total accumulated annual leave and any other benefit provided to resigning employees <br />under the Personnel Policy. <br /> <br />Any payments due under this section may be paid either in a lump sum payment or in equal bi-weekly <br />installments for a period of not more than six months until paid in full at the EMPLOYEE'S discretion. <br />Payment will be made or begin at the first payday for city employees that occurs at least 18 days after <br />EMPLOYEE signs the Release Agreement if she has not rescinded it. <br /> <br />SECTION 5 - COMPENSATION <br /> <br />The CITY will pay EMPLOYEE for her services in accordance with the terms and conditions <br />outlined in the CITY'S Pay Plan. The CITY shall pay EMPLOYEE for her services as City <br />Administrator an annual gross salary of$95,698.32. On January 1, 2006, the EMPLOYEE shall <br />receive the cost ofliving increase applied to the Pay Plan. On July 1, 2006, EMPLOYEE shall move <br /> <br />2 <br />