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contributions to the Public Employee's Retirement System ("PERS") on these severance <br />payments, nor make any payments for long-term disability, life, or any other insurance benefits. <br />EMPLOYEE may, if eligible, seek COBRA continuation health benefits following his date of <br />separation from the City. EMPLOYEE agrees to indemnify, defend and hold harmless the City <br />from and against any and all claims or causes of action affecting any and all liability for any state <br />or federal income tax and PERS liability based upon the severance pay referred in this <br />Paragraph. EMPLOYEE agrees that he will not apply for unemployment benefits following his <br />date of separation from the City. <br />7. City agrees that EMPLOYEE may request letters of recommendation and <br />references from past, present and future City Council Members and that such letters of <br />recommendation and references may be written on CITY letterhead. EMPLOYEE agrees that by <br />requesting a letter of recommendation or reference, he authorizes and grants absolute privilege to <br />the individual from whom he has requested the recommendation or reference, to release any and <br />all information he or she has concerning EMPLOYEE which may be of a confidential, <br />privileged, positive and/or negative nature, including but not limited to, employment information <br />and/or any other information the individual may possess. EMPLOYEE understands and <br />expressly agrees that information provided by a former, present or future City Council Member <br />in a letter of recommendation or reference requested by EMPLOYEE shall not constitute a <br />violation of this Agreement. <br />8. The City shall pay EMPLOYEE for all earned and unused accrued vacation, <br />management vacation, and 15 % of unused accrued sick leave, as of the date of separation from <br />employment, less applicable payroll tax withholdings and deductions. This amount will be paid <br />in a lump sum no later than January 24, 2017. <br />