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CITY OF SANTA ANA <br />CITY MANAGER EMPLOYMENT AGREEMENT <br />This City Manager Employment Agreement ( "Agreement ") is entered into as of <br />the 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 />2012, and continuing through June , 2015 ( "Initial Term "), and shall remain in effect <br />for the Initial Term and any Subsequent Term, unless terminated earlier in accordance with <br />Section 9. Unless City gives written notice of non - renewal to City Manager at least thirteen (13) <br />months 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 2014, this Agreement shall be extended for one year until June 2016, and so on <br />for a maximum term of June 2017. <br />1.2 Effect of Non - 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 />EXHIBIT A <br />45635.01000 \7118043.4 <br />5OA -3 <br />