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EMPLOYMENT AGREEMENT <br /> THIS AGREEMENT is made and entered into the th day of October,2014 between the City of <br /> Centerville, Minnesota (the City),and Michael Ericson("Employee"or the"City Administrator"). <br /> BACKGROUND FACTS <br /> A. The City wishes to employ the services of the Employee as City Administrator of the City of <br /> Centerville,Minnesota. <br /> B. The City and Employee desire to provide for certain procedures, benefits and requirements <br /> regarding the employment of the Employee by the City. <br /> C. Employee wishes to accept employment as City Administrator of Centerville, under the terms <br /> and conditions of this agreement. <br /> TERMS OF AGREEMENT <br /> In consideration of the facts mentioned above and the mutual promises set out below, the parties <br /> agree as follows: <br /> 1. Duties: The City agrees to employ Employee as its City Administrator. Employee agrees to <br /> serve as City Administrator in accordance with the attached position description. Employee shall <br /> perform the duties as are required pursuant to the Personnel Ordinance and Personnel Policies for City <br /> of Centerville employees. At all times during the performance of this Agreement, Employee shall <br /> adhere to all rules and regulations established by the City of Centerville for the conduct of its <br /> managerial employees. <br /> 2. Compensation: City Administrator shall receive an annual salary of$90,000.00 per year <br /> commencing November 3,2014,and paid according to the City's normal payroll calendar. The City <br /> Administrator will receive a performance evaluation six months and one year after hire, <br /> thereafter annually. An adjustment in annual salary or benefits for the City Administrator shall be <br /> considered at the time performance reviews are given by the Council provided a satisfactory <br /> performance evaluation is received. <br /> 3. Terms and Conditions: The City Administrator will serve at the will of the Council and may be <br /> terminated with or without cause at any time(an"at will" employee). Any of the following will <br /> constitute termination with cause and would result in no severance: <br /> a. Willful neglect of duty; <br /> b. Inefficiency or incompetence in office that is not corrected after a reasonable <br /> identification of deficiency during annual performance evaluation and after being <br /> given appropriate opportunity to correct to the satisfaction of the majority of the <br /> City Council; or <br /> c. Malfeasance or nonfeasance in office. <br /> Should the City terminate the employment of the City Administrator without cause, he will receive six <br /> (6) months' severance pay and benefits. Additionally, he will have the option to resign and receive six <br /> (6) months severance pay and benefits (1) if salary or benefits are cut (other than as part of an across- <br /> 20 <br />