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July 21, 2003 Page 209 WHEREAS, the EMPLOYER and EMPLOYEE consider it prudent to enter into an agreement to assure continuous harmonious and effective management of the County's affairs in the event of the termination or resignation of the EMPLOYEE as Cabarrus ~ounty Manager; and, WHEREAS, both parties recognize the professional nature of the position of County Manager and that the recruitment and employment of an individual in the capacity of County Manager requires a lengthy and involved process; the EMPLOYER makes a major investment in time, effort and public dollars in recruiting, selecting, and compensating the EMPLOYEE; and the EMPLOYEE by accepting the position of County Manager, relinquishes the security afforded to him by the Cabarrus County Personnel Ordinance in his current capacity as Deputy County Manager. NOW, THEREFORE, in consideration of the promises and mutual covenants and agreements contained herein, it is mutually covenanted and agreed by and between the parties hereto as follows: SECTION I. EFFECTIVE DATE OF EMPLOYMENT For purposes of this agreement, the effective date of employment of the EMPLOYEE as County Manager shall be July 21Bt, 2003. SECTION II. DUTIES AND RESPONSIBILITIES EMPLOYER hereby agrees to employ John David Day as County Manager for the County of Cabarrus, North Carolina. Employee shall perform the functions and duties specified in the North Carolina General Statutes, County Code of Ordinances, annual Budget Ordinance and other legally permissible proper duties and functions as the Board shall from time to time assign through action of a majority of Board members. SECTION III. TERM A. Nothing in this agreement shall prevent, limit or otherwise interfere with the right of the EMPLOYER to terminate the services of the EMPLOYEE at any time, subject only to the provisions set forth in SECTION V., paragraph A and B of this agreement. B. Nothing in this agreement shall pre~ent, limit or otherwise interfere with the right of the EMPLOYEE to resign at any time from his position with' the EMPLOYER, subject only to the provisions set forth within SECTION V., paragraph D, of this agreement. SECTION IV. RESERVED SECTION V. TERMINATION AND POST-TERMINATION CONSULTING SERVICES A. EMPLOYER retains the right to terminate the employment of the EMPLOYEE as County Manager at any time, with or without cause. If EMPLOYER exercises that right, EMPLOYER agrees to engage EMPLOYEE in the provision of consulting services as outlined herein: 1. EMPLOYEE will receive payment of salary and associated benefits equal to those being received immediately preceding termination for a period of nine (9) months. 2. EMPLOYEE shall be entitled to be paid for all accumulated vacation leave in accordance with Article VI of the Cabarrus County Personnel Ordinance. B. EMPLOYER shall not at any time during the term of this agreement reduce the salary or any other financial benefits of the EMPLOYEE in any greater percentage than an applicable across-the-board reduction for all other employees of the county. C. In the event the EMPLOYEE is convicted of a felony, the EMPLOYER shall not be under obligation to pay the EMPLOYEE for any accumulated vacation leave under the County's pay plan. D. In the event the EMPLOYEE elects to voluntarily resign his position as County Manager with the County, the EMPLOYEE shall give the Board at least thirty (30) days notice in advance, unless the parties otherwise agree. SECTION VI. DISABILITY If EMPLOYEE is permanently disabled or is otherwise unable to perform his duties because of sickness, accident, injury, mental incapacity or health for a period of thirty (30) consecutive days beyond any accrued sick and vacation leave, EMPLOYER shall have the option to terminate the EMPLOYEE, subject to the requirements of SECTION V, paragraph A, 1 above. SECTION VII. SALARY EMPLOYER agrees to pay EMPLOYEE for his services pursuant hereto an annual base salary of not less than $135,000, payable in installments at the same time as other employees of the County are paid. The EMPLOYER may