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A. Regular vacation with pay at the annual rate of fifteen (15) working days for each of his or her first and second completed year of service. B. An additional five (5) working days per year over the regular and longevity vacation schedules applicable to represented employees of the City subject to the following restrictions on the accrual of vacation leave: Unrepresented Executive Management (EM) employees, no restrictions, Unrepresented Middle-Management (MM) employees, twenty-five (25) days maximum accrual of such additional five days per year, Affected management employees must take at least five (5) consecutive days of vacation leave each year. 6.8 Vacation Pay Option. Affected employees shall be given the option to receive cash compensation, computed on a straight time basis, in lieu of up to five (5) working days of earned, unused vacation leave benefits set forth in Section 6.7 above. 6.9 Sick Leave Credits for New Hires. The City Manager Is authorized to grant a newly appointed incumbent of an unrepresented management position sick leave credits up to an amount equal to any earned but unused sick leave credits available to such appointee at the time of his or her separation from his or her most recent previous employer. 6.10 Payment for Unused Sick Leave. Affected employees shall be granted payment for unused sick leave on the same basis as provided represented employees of the City, with the exception that such affected employees who have completed twenty-five (25) years or more of full-time service with the City shall be entitled to payment for one-half (1/2) of the total sick leave benefit credited to his or her account upon the effective date of his or her termination, not to exceed a maximum limit of 100 working days at the rate of base pay effective on the date of such termination. 6.11 Administrative Leave Policy. The City Manager is authorized to grant, at his or her discretion, paid or unpaid leave for management personnel. 6.12 Residency - Middle~Manalement Personnel. The City shall continue to permit officers and employees employed in classes of employment designated as Unrepresented or Represented Middle-Management (MM or RM) to reside outside the limits of Orange County, so long as such residency is not an unreasonable distance nor requires an unreasonable response time to the particular employee's place of employment. Any affected employee who desires to take advantage of the opportunity to reside outside of Orange County shall first request permission to do so from his or her department head. Said request shall be granted by the department head if it is determined that the intended residence is not an unreasonable distance nor requires an 9 of 14