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SEPARATION AND RELEASE AGREEMENT BETWEEN CITY OF LITTLE CANADA, MINNESOTA AND DOROTHY DEE NORGARD This Separation and Release Agreement ( "Agreement ") is made and entered into by and between the City of Little Canada, Minnesota (hereinafter the "City "), a municipal corporation, and Dorothy Dee ( "Dotty ") Norgard. Recitals WHEREAS, the parties hereto have determined that it is in the best interests of all parties that Dotty Norgard separate from employment with the City by mutual agreement in accordance with the terms and conditions set forth below in this Agreement. NOW, THEREFORE, in consideration of the mutual covenants and agreements to be performed, as hereinafter set forth, the City and Dotty Norgard agree as follows: Article 1. Voluntary Resignation Dotty Norgard voluntarily resigns from employment with the City, effective July 27, 2011, which will be Ms. Norgard's last day of employment with the City (hereinafter "Separation Date "). Article 2. Consideration Section 2.1. Resignation, Retirement and Payment In consideration for the voluntary resignation described in Article 1 and the waiver and release described in Article 3 of this Agreement, the City will do the following: (1) deem Dotty Norgard as providing sufficient notice of her resignation under the City's practices, policies, rules and regulations regarding such notice; (2) continue to pay Ms. Norgard wages, subject to tax withholding, calculated on 40 -hour weeks at $21.89 an hour until October 27, 2011 as severance pay; (3) continue Ms. Norgard on the City's health and life insurance plans while she remains on the payroll, with the City paying any cost shares normally contributed by the employer; (4) continue to pay the City contribution to Ms. Norgard's Health Savings Account while she remains on the payroll; and (5) pay Ms. Norgard the amount of accumulated sick leave she is entitled to under City policies in the form of a contribution to a retirement health savings account. Section 2.2. Other Compensation. In addition to the compensation stated in Section 2.1, the City shall also pay Ms. Norgard her accumulated vacation leave, at her current rate of pay, on the payroll to be distributed on July 29,2011, subject to normal withholding.