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4. Hours of Work. It is recognized that EMPLOYEE must devote a great deal of time outside of typical office hours to the business of the CITY, and to that end, EMPLOYEE will be allowed to adjust his schedule as he shall deem appropriate during said normal office hours. 5. Outside Activities. EMPLOYEE agrees, except as specifically authorized by the COUNCIL, to remain in the exclusive employ of the CITY for an indefinite period and not to become employed by any other employer until termination of his employment with the City as provided herein. At the consent of the COUNCIL, EMPLOYEE may occasionally be involved in teaching, writing, or consulting work which does not otherwise interfere with the EMPLOYEE'S ability to effectively discharge his assigned duties. EMPLOYEE may not utilize CITY equipment or technology for personal gain. 6. Performance Evaluation. The EMPLOYEE and the CITY agree that a performance review will be conducted on the EMPLOYEE annually. Said review shall be in accordance with specific criteria developed jointly by the CITY and the EMPLOYEE. Said criteria maybe added to or deleted from as the COUNCIL mayfrom time to time determine, in consultation with the EMPLOYEE. Further, the COUNCIL shall provide the EMPLOYEE with a summary written statement of the findings of the COUNCIL and provide an adequate opportunity for the EMPLOYEE to discuss his evaluation with the COUNCIL. Subject to the discretion of the EMPLOYEE otherwise, the evaluation shall be conducted in an executive session of the COUNCIL closed to the public. Annually, the COUNCIL and EMPLOYEE shall define such goals and performance objectives that they determine necessary for the proper operation of the CITY and for the attainment of the COUNCIL'S policy objectives and shall further establish a relative priority among those various goals and objectives to be reduced to writing. The goals and objectives shall generally be attainable within the time limitations specified and within the annual operating and capital budgets and appropriations provided. In effecting the provisions of this Section,the COUNCIL and EMPLOYEE mutually agree to abide by the provisions of applicable law. 7. Salary. Effective July 12, 2016, the CITY shall pay the EMPLOYEE a salary of$63.16 per hour. If the CITY provides a cost of living adjustment to non-union employees in subsequent years, the CITY shall provide the same cost of living adjustment to the EMPLOYEE. Further, the CITY may authorize a market rate wage adjustment subsequent to conducting a salary compensation study. 8. Vacation. EMPLOYEE shall accrue vacation in accordance with the rates specified in Section 3.40 of the CITY'S Personnel Manual, or as mutually agreed upon by the CITY and EMPLOYEE. EMPLOYEE shall be permitted to carry over vacation benefits in accordance with the relevant provisions of the CITY'S Personnel Manual. In the event, for reasons not under EMPLOYEE'S control, EMPLOYEE'S accrued vacation at the end of the year exceeds the established carry-over limitations established in the Personnel Manual, the COUNCIL, at the request of the EMPLOYEE, may waive the EMPLOYEE'S carry-over limitation in a given year for just cause, at its discretion. Employment Agreement for James Ericson Revised July 1,2016 Page 2 of 5