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<br />A-2012-101 <br />CITY OF SANTA ANA <br />CITY MANAGER EMPLOYMENT AGREEMENT <br />This City Manager Employment Agreement ("Agreement") is entered into as of <br />the 4th day of June, 2012 (the "Effective Date"), between the City of Santa Ana (hereinafter <br />referred to as the "City") and Paul M. Walters (hereinafter referred to as the "City Manager" or <br />the "Employee"). City and City Manager/Employee are sometimes referred to in this Agreement <br />as "Party" and collectively as "Parties." <br />RECITALS <br />WHEREAS, it is the desire of the City Council of the City to retain the services of <br />Employee as City Manager pursuant to the provisions of Section 500 of the Charter of the City <br />of Santa Ana ("City Charter"), and <br />WHEREAS, it is the desire of the City Council to provide certain benefits, <br />establish certain conditions of employment and to set certain working conditions of the City <br />Manager. <br />NOW, THEREFORE, the above named Parties hereby mutually agree and <br />promise as follows: <br />1. Term. <br />1.1 Initial Term and Subsequent Terms <br />This Agreement shall be deemed effective for an initial term beginning on June <br />4th, 2012, and continuing through June 4th, 2015 ("Initial Term"), and shall remain in effect for <br />the Initial Term and any Subsequent Term, unless terminated earlier in accordance with Section <br />9. Unless City gives written notice of non-renewal to City Manager at least thirteen (13) months <br />prior to the expiration of the Initial Term or a Subsequent Term, this Agreement shall <br />automatically renew for two (2) separate one-year terms ("Subsequent Term") without further <br />action of the City Council. For example, if notice of non-renewal is not provided on or before <br />May 4th 2014, this Agreement shall be extended for one year until June 4th 2016, and so on for a <br />maximum term of June 4th 2017. <br />1.2 Effect ofNon-Renewal <br />Employee may elect to treat the action of non-renewal by the City Council as a <br />termination that entitles him to a Severance Payment under Section 9.2 of this Agreement, if <br />Employee gives written notice of such election to the City within thirty (30) days after the action <br />of non-renewal. <br />45635.01000\7118043.4 <br />