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17. Resignation. In the event EMPLOYEE voluntarily resigns his position with the CITY, <br /> EMPLOYEE shall provide the CITY with written notification of his resignation at least 30 <br /> days prior to the effective date, unless the COUNCIL consents to a shorter notification <br /> period. If proper notification of the resignation is provided to the CITY, EMPLOYEE <br /> shall be entitled to his accrued vacation and sick leave benefits in accordance with the <br /> relevant provisions of the CITY'S Personnel Manual. If proper notification of the <br /> resignation is not provided by EMPLOYEE, payment of such benefits shall be made at the <br /> discretion of the COUNCIL. <br /> 18. Termination and Severance Pay. EMPLOYEE will serve at the will of the COUNCIL <br /> and may be terminated with or without cause at any time. In the event EMPLOYEE is <br /> terminated by the COUNCIL and the EMPLOYEE is willing and able to perform his <br /> duties under this agreement, the CITY agrees to pay EMPLOYEE his then current salary <br /> and benefits for a period of six months. The CITY'S obligation to pay severance shall <br /> terminate if EMPLOYEE successfully obtains a position of comparable responsibility and <br /> compensation. <br /> In the event the COUNCIL authorizes to pay severance, the EMPLOYEE will not be <br /> entitled to accrue additional vacation, sick leave or holidays during the period that <br /> severance is paid. <br /> In the event the CITY at any time during the term of this agreement reduces the salary or <br /> other financial benefits of EMPLOYEE by a greater percentage than an applicable across- <br /> the-board reduction for all employees of the CITY, or in the event the CITY <br /> refuses, following written notice, to comply with any other provision benefiting <br /> EMPLOYEE herein, or the EMPLOYEE resigns following a suggestion by a majority <br /> of the COUNCIL that he resign, then, in that event the EMPLOYEE may at his option be <br /> deemed to be "terminated" at the date of such reduction or such refusal to comply <br /> within the meaning and context of the herein severance pay provision. <br /> In the event EMPLOYEE is terminated because of malfeasance in office, gross <br /> misconduct or conduct that could lead to the conviction of a felony or any other crime <br /> involving personal gain to EMPLOYEE, then EMPLOYER shall have no obligation to pay <br /> the severance benefits to EMPLOYEE. If EMPLOYEE is subsequently determined by a <br /> court not to have committed the felony or other crime involving personal gain for which <br /> EMPLOYEE was terminated by the CITY, EMPLOYEE shall be entitled to payment of <br /> his severance in a lump sum payment. <br /> Upon the effective date of the EMPLOYEE'S termination, the City shall pay EMPLOYEE <br /> for all earned and accrued sick leave and vacation hours in accordance with the CITY'S <br /> Personnel Manual in effect as of July 11, 2016. <br /> 19. Market Rate Adjustment. EMPLOYER shall, from time to time as may be mutually <br /> agreeable, complete a Salary Compensation Study on the City Administrator position to be <br /> compliant with the policies of the CITY'S Personnel Manual. <br /> Employment Agreement for James Ericson <br /> Revised July 1,2016 Page 4 of 5 <br />