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July 21, 2003 Page 211 SECTION XV. INDEMNIFICATION EMPLOYER shall defend, save harmless and indemnify EMPLOYEE against any tort, professional liability claim or demand or legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of EMPLOYEE'S duties as County Manager. EMPLOYER will provide a defense for any such claim, demand or legal action and will pay the amount of any settlement or judgement rendered therein, subject to the limits of law and inclusive of third-party insurance. SECTION XVI. BONDING EMPLOYER shall bear the full cost of any fidelity or other bonds required of the EMPLOYEE under any federal, state law or local ordinance. SECTION XVII. OTHER TERMS AND CONDITIONS OF EMPLOYMENT A. The Board, in consultation with the EMPLOYEE, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of EMPLOYEE, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this agreement or state law. B. All provisions of the regulations and rules of the EMPLOYER relating to vacation, sick leave, retirement, holidays, fringe benefits and working conditions as they now exist or hereinafter may be amended, also shall apply to EMPLOYEE as they would to other employees of the EMPLOYER, in addition to said benefits enumerated specifically for the benefit of the EMPLOYEE, except as herein provided. C. EMPLOYEE shall be entitled to receive the same vacation and sick leave benefits as are accorded other employees, including the provisions governing accrual and payment thereof on termination of employment as provided for within this agreement. D. EMPLOYEE shall be subject to the County Wage and Hour Policy in Appendix C of the Cabarrus County Personnel Ordinance. E. If any provision, or any portion thereof, contained in this agreement is held unconstitutional, invalid or unenforceable, the remainder of this agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect. IN WITNESS WHEREOF, the CkBARRUS BOARD OF COMMISSIONERS has caused this agreement to be signed and executed in its behalf by the CHAIRMAN and duly attested and the EMPLOYEE has signed and executed this agreement, both in duplicate, this 21st day of July, 2003. /s/ Robert M. Freeman Chairman ATTEST: /s/ Frankie F. Bonds Clerk to the Board EMPLOYEE /s/ John David Day John David Day This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. /s/ Pamela S. Dubois Pamela S. Dubois Finance Director (L) RECESS OF MEETING There being no further business to come before the Board, Chairman Freeman recessed the meeting at 11:40 p.m. until 6:00 p.m. on Monday, July 28, 2003, in the Multipurpose Room at the Governmental Center. Clerk to the Board