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~~ .~ NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS OF THE PARTIES, IT IS HEREBY AGREED AS FOLLOWS: 2. PAYMENT 2.1 In consideration of this Agreement, the City agrees to pay to Andre the sum of $48,000.00. 2.2 The payment shall be made to Andre with deductions as required by law, including state and federal income taxes and PERA and any other deduction required by law, and in good funds. aQ 1.t9r taan J~fte 30, 1989. In the event an employee's PERA contribution is withheld from payment, the City agrees to forthwith make its employers contribution for the PERA account of James Andre. 3. ANDRE RELEASE OF CITY 3.1 Andre agrees and hereby does release the City from any claims, causes of action in law or equity, both known and unknown he may have against the City arising out of the facts set forth in the Recital or any other claim arising prior to the date of this Agreement. 3.2 Andre agrees and does hereby release all City Council members, including the Mayor and all other officers of the City, from any claims or causes of action in law or equity, both known and unknown arising out of the facts set forth in the Recital or any other claim arising prior to the date of this Agreement 4. RELEASE OF ANDRE 4.1 The City agrees to release Andre from any claims, causes of action in law or equity, both known and unknown arising out of the facts set forth in the Recital or any other claim arising prior to the date of this Agreement. 5. PRE-EXISTING MEDICAL 5.1 This Agreement shall not be construed as a waiver of rights and obligations under statutes governing worker's compensation. 5.2 This Agreement shall not affect the rights and obligations of health insurers which have provided insurance coverage to Andre under contracts with the City. 6. EFFECTIVE DATE/GOVERNING LAW 6.1 The effective date of this Agreement is July II 1989, and covers all claims arising prior thereto. 2