NORTH CAROLINA

UNION COUNTY

CITY OF MONROE
EMPLOYMENT AGREEMENT

THIS AGREEMENT, hereinafter, sometimes referred to as " THE AGREEMENT" Made and
7th

entered into this day of July, 2014 by and between the CITY OF MONROE, a municipal
Corporation of Union County, North Carolina, hereinafter called " Employer", party of the first
part, and Edward L. Faison, of Whiteville, North Carolina, hereinafter called " Employee", party
of the second part.

WITNESSETH:

WHEREAS, Employer desires to employ the services of said Employee as City Manager for the
City of Monroe, Union County, North Carolina; and

WHEREAS, it is the desire of the Cityy Council for

Ci the CityMonroe,
of Mo o , ( hereinafter sometimes
referred to as " The City Council" or " The Council") to establish certain conditions of
employment to the end that such conditions will induce the Employee to remain in such
employment, to assure full work productivity and provide a just means for termination; and

WHEREAS, Employee desires to accept employment as the City Manager for the City of
Monroe;

NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties
agree as follows: K

Section 1: Term.

A. The Employee shall serve at the pleasure of the City Council. Nothing in this Agreement
shall prevent, limit, or otherwise interfere with the right of the City Council to terminate
the services of the Employee at any time with or without cause, subject only to the
severance provisions set forth in the Agreement.

B. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the
Employee to resign at any time from his position with the Employer, subject only to
provisions set forth in this Agreement

C. The term of this Agreement shall be in perpetuity, the employee having a continuing
appointment provided the Employee continues to fully and faithfully discharge the
Employee' s duties as City Manager. The Agreement shall remain in effect until the

Employee voluntarily resigns or in the event that the Employee is terminated, as defined

Employment Agreement
Page 1of11
 in Section 9 of this Agreement, the Employee shall be entitled to all compensation
including salary accrued vacation and benefits ( excluding sick leave and vehicle
allowance) paid in accordance with Section 10 Severance, of this Agreement.

D. Employee shall give the Employer at least sixty ( 60) days advance written notice of his
intent to resign.

Section 2: Duties and Authority.

Employer agrees to employ the Employee as City Manager for the City of Monroe, to perform
the functions and duties specified in the North Carolina General Statutes, as amended, and as
referenced by the Charter and- or Codified Ordinances of the Employer, and to perform other
legally permissible and proper duties and functions.

Section 3: Compensation.

A. Base Salary: Employer agrees to pay Employee an annual base salary of ONE
HUNDRED FORTY- FIVE THOUSAND ($ 145, 000), dollars payable in installments at
the same time that the other management employees of the Employer are paid.

B. This Agreement shall be automatically amended to reflect any salary adjustments that are
provided or required by the Employer's compensation policies.

C. The Employer agrees to increase the compensation of the Employee dependent upon the
results of the performance evaluation conducted under the provisions of Section 13 of
this Agreement.

Section 4: Health and Life Insurance Benefits.

A. Upon commencing employment the Employer agrees to provide and to pay the premiums
for health, hospitalization, surgical, vision, dental and comprehensive medical insurance
for the Employee equal to that which is provided to all other employees of the City of
Monroe.

B. The Employee may elect to submit once per calendar year to a complete physical
examination, including a cardio- vascular examination, by a qualified physician selected
by the Employee, the cost of which shall be paid by the Employee in accordance with the
City' s Health Insurance Plan.

C. The Employer shall pay the amount of premium due for term life insurance in the amount
provided
by the City Council ( currently the annual base salary), including all increases in
the base salary during the life of this Agreement.

Employment Agreement
Page 2 of 11
Section 5: Vacation and Sick Leave.

A. Upon commencing employment, the Employee shall be credited with sick and vacation
leave equal to eighty ( 80) hours. The Employee shall immediately begin accruing sick
and vacation leave at the highest rate provided to any other employees. ( Twenty six ( 26)
days per year of vacation and twelve ( 12) days of sick leave).

B. The Employer shall accept accrued sick leave, earned by the Employee from previous
employment in North Carolina municipalities, as if this leave had accrued while in the
Employ of the Employer.

C. The Employee is entitled to accrue all unused leave, up to sixty ( 60) days and in the event
the Employee' s employment is terminated, either voluntarily or
involuntarily, the

Employee shall be compensated for all accrued vacation time, all paid holidays, and other
benefits not including accrued sick leave, to date.

D. In the event of termination, either voluntarily or involuntarily, the Employee shall be

compensated for all accrued vacation time as of the date of termination.

E. The Employees vacation and sick leave are exclusive of holidays recognized by the
Employer, which the Employee shall also be entitled to.

Section 6: Automobile and Cell Phone Allowances.

Upon commencing employment, the Employer agrees to compensate the Employee:

A. Automobile. Recognizing that frequent and routine travel to guide and direct the
Employer' s interests, operations, and services are related to the duties of City Manager,
and which provides direct benefits to the Employer and the community, the Employer
agrees to pay to the Employee, during the term of this Agreement and in addition to other
salary and benefits herein provided, to provide a monthly allowance of FIVE HUNDRED
DOLLARS ($ 500) per month, as a vehicle allowance to be used to purchase, lease, or
own, operate and maintain a vehicle. The Employee shall be responsible for paying for
liability, property damage, and comprehensive insurance coverage upon such vehicle and
shall further be responsible for all expenses attendant to the purchase, operation,

maintenance, repair, and regular replacement of said vehicle. The Employer shall
reimburse the Employee at the IRS standard mileage rate for any business use of the
vehicle beyond the City of Monroe area. For purposes of this Section, use of the car
within the greater City of Monroe area is defined as travel to locations within a 50 mile
radius the City of Monroe.

B. Cell Phone. Recognizing that 24/ 7 communications between the Employer and
Employee provides direct benefits to the Employer and the community, the Employee
will be compensated for a personal Cell Phone to be used for business/ personal purposes,

Employment Agreement
Page 3of11
 the Employer agrees to provide a monthly allowance of ONE HUNDRED DOLLARS
100) per month. ohe c. 1- ych4. 1Laiso pi-ay.- de 1/ perE.
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Section 7: Retirement. e. s ,,
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A. The Employer agrees to enroll the Employee into the North Carolina. Local Government
Employees Retirement System ( NCLGERS) and to make all the appropriate contributions
on the Employee' s behalf, for both the Employer and Employee share required.

B. In addition to the Employer' s payment to the NCLGERS as referenced above, Employer f

bit,

agrees to execute all necessary agreements provided by ICMA Retirement Corporation

ICMA- RC] or other Section 457 deferred compensation plan for Employee' s L i(.• om)

participation in said supplementary retirement plan and, in addition to the base salary
paid by the Employer to Employee, Employer agrees to pay an amount equal to the
percent contributed by the Employer on behalf of City Employees. The dollar value of
this contribution may be used, at the Employee' s option, to purchase previous service
from another qualified plan.

Section 8: General Business Expenses.

A. Employer agrees to budget for and to pay for professional dues and subscriptions of the
Employee necessary for continuation and full participation in national, regional, state,
and local associations, and organizations necessary and desirable for the Employee' s
continued professional participation, growth, and advancement, and for the good of the
Employer.

B. Employer agrees to budget for and to pay for travel and subsistence expenses of
Employee for professional and official travel, meetings, and occasions to adequately
continue the professional development of Employee and to pursue necessary official
functions for Employer, including but not limited to the ICMA Annual Conference, the
state league of municipalities, and such other national, regional, state, and local
governmental groups and committees in which Employee serves as a member.

C. Employer also agrees to budget for and to pay for travel and subsistence expenses of
Employee for short courses, institutes, and seminars that are necessary for the
Employee' s professional development and for the good of the Employer.

D. Employer recognizes that certain expenses of a non- personal but job related nature are
incurred by Employee, and agrees to reimburse or to pay said general expenses. The
Finance Director is authorized to disburse such moneys upon receipt of duly executed
expense or petty cash vouchers, receipts, statements or personal affidavits.

E. The Employer acknowledges the value of having Employee participate and be directly
involved in local civic clubs or organizations. Accordingly, Employer shall pay for the

Employment Agreement
Page 4 of 11
 reasonable membership fees and/ or dues to enable the Employee to become an active
member of one ( 1) local civic club or organization.

Section 9: Terminations.

For the purpose of this Agreement, termination shall occur when:

A. The majority of the governing body votes to terminate the Employee at a duly authorized
public meeting; OR

B. If the Employer, citizens or legislature acts to amend any provisions of the Charter,
Ordinances or appropriate enabling legislation pertaining to the role, powers, duties,
authority, responsibilities of the Employee' s position that substantially changes the form
of government, the Employee shall have the right to declare that such amendments
constitute termination; OR

C. If the Employee resigns following an offer to accept resignation, whether formal or

informal, by the Employer as representative of the majority of the governing body that
the Employee resign, then the Employee may declare a termination as of the date of the
suggestion; OR

D. Breach of contract declared by either party with a 30 day cure period for either Employee
or Employer. Written notice of a breach of contract shall be provided in accordance with
the provisions of Section 20; OR

E. In the event the Employer at any time during the term of this Agreement reduces the
salary or other financial benefits of Employee in a greater percentage that an applicable
across- the- board reduction for all employees of Employer; or in the event Employer
refuses, following to comply with any other provision benefiting
written notice,

Employee herein, then, in that event, Employee, may, at his option, be deemed to be
terminated" at the date of such reduction or such refusal to comply within the meaning
and context of the herein severance pay provision; OR

F. If the Employer terminates, suspends, rescinds, cancels, or otherwise ends this

Agreement; OR

G. If the Employee resigns following an offer to accept resignation by the Employer upon
due action of the governing body at a duly authorized public meeting.

Section 10: Severance.

Severance shall be paid to the Employee when employment is terminated as defined in Section 9.
If the Employee is terminated, the Employer shall provide a minimum severance payment equal
to one ( 1) year gross salary and benefits, based at the then current rate of compensation. This

Employment Agreement
Page 5 of 11
severance shall be paid in twelve ( 12) equal monthly installments, unless otherwise agreed to by
the Employer and the Employee.

The Employee shall also be compensated for all accrued vacation time and all paid holidays.

For a minimum period of one ( 1) year following termination, the Employer shall pay the cost to
continue the following benefits:

1. Health insurance for the employee and all dependents as provided in Section 5( A);

2. Life insurance as provided in Section 5( D);

3. Any other available benefits ( excluding sick leave and vehicle allowance).

If the Employee is terminated due to conviction of any illegal act involving personal gain to the
Employee, a felony, or a Class Al misdemeanor which involves moral turpitude, then the
Employer is not obligated to pay severance under this section.

Section 11: Disability.

If the Employee is permanently disabled or is otherwise unable to perform his duties because of
sickness, accident, injury, mental incapacity or health for a period beyond any accrued sick
leave, Employer shall have the option to terminate this Agreement, subject to the severance pay
requirements contained herein.

Section 12: Resignation.

In the event that the Employee voluntarily resigns his position with the Employer, the Employee
shall provide a minimum of sixty ( 60) days notice unless the parties agree otherwise.

Section 13: Performance Evaluation.

Employer will complete a review of the Employee' s performance and consider a salary
adjustment within six ( 6) months of commencing employment. Thereafter, the Employer will
complete a Performance Review of Employee at twelve ( 12) month intervals. Performance
Reviews will be subject to a process, form, criteria, and format for the evaluation, which shall be
mutually agreed upon by the Employer and Employee.

Annually, the City Council and Manager will define goals and performance objectives which
they determine necessary for the proper operation of the City and in the attainment of the City
Council' s policy objectives and shall further establish a relative priority among those various
goals and objectives, said goals and objectives to be reduced to writing. The goals and

Employment Agreement
Page 6 of 11
objectives shall generally be attainable within the time limitation as specified and the annual
operating and capital budget and appropriations that can be provided.

The process at a minimum shall include the opportunity for both parties to:

1. Prepare a written evaluation;

2. Meet and discuss the evaluation; and,

3. Present a written summary of the evaluation results.

A performance based salary adjustment may be provided by the Employer. The final written
evaluation and salary adjustment, if any, will be completed and delivered to the Employee within
thirty ( 30) days of the evaluation meeting.

In effecting the provisions of this section, the City Council and Manager mutually agree to abide
by the provisions of any and all applicable laws.

Section 14: Hours of Work.

It is recognized that the Employee must devote a great deal of time outside the normal office
hours on business for the Employer, and to that end Employee shall be allowed to establish an
appropriate and flexible work schedule.

Section 15: Outside Activities.

The employment provided for by this Agreement shall be the Employee' s sole employment.
Recognizing that certain outside consulting or teaching opportunities provide indirect benefits to
the Employer and the community, the Employee may elect to accept WITH PRIOR NOTICE,
limited teaching, consulting with the understanding that such arrangements shall not constitute
interference with, nor a conflict of interest with his or her responsibilities under this Agreement.

Section 16: Moving and Relocation Expenses.

Employee agrees to reside within the corporate boundaries of the local government within twelve
12) months of employment, and thereafter to maintain a house, condominium, town home or
apartment within the corporate boundaries of the local government, unless the parties agree
otherwise.

A. Employer shall pay directly for the expenses of moving Employee and his family and
personal property from Whiteville, North Carolina to Monroe, North Carolina. Said

moving expenses including packing, moving, storage costs, unpacking, and insurance
charges, up to FIVE THOUSAND DOLLARS ($ 5, 000). The Employer may reimburse

Employment Agreement
Page 7 of 11
 the Employee for substantiated moving expenses based up on the submitted of invoices
for services rendered.

B. Employer shall pay Employee an interim housing supplement of ONE THOUSAND

FIVE HUNDRED DOLLARS ($ 1, 500) per month for a period commencing on or about
the effective date of employment, and shall continue for a maximum of six ( 6) months, or
until a home is purchased and closed on, within the corporate limits of the City of
Monroe, whichever event occurs first.

C. The Employee shall be reimbursed, or Employer may pay directly, for the expenses of
packing and moving from temporary housing to permanent housing during the first year
of this Agreement. The reimbursement shall be considered a part of the FIVE
THOUSAND DOLLARS ($ 5, 000) moving, relocation supplement.
I
D. The Employee shall be reimbursed for the cost of travel, meals and lodging incurred
while visiting Monroe and or searching for housing prior to the Employee' s second week
of work.
I

E. The Employer shall pay the Employee' s tax liability on all Employer provided benefits
for relocation and housing.

Section 17: Ethical Commitments.

Employee will at all times uphold the tenets of the ICMA Code of Ethics, a copy of which is
attached hereto and incorporated Specifically, Employee shall not endorse candidates,
herein.
make financial contributions, sign or circulate petitions for a candidate, or participate in funding
activities for individuals seeking or holding elected office, nor seek or accept any personal
enrichment or profit derived from confidential information or misuse of public time. Employer

shall support commitments by refraining from any order, direction, or request that would require
Employee to violate the ICMA Code of Ethics. Specifically, neither the governing body nor any
individual member thereof shall request Employee to endorse any candidate, make any financial
contribution, sign or circulate any petition, or participate in any fund raising activity for
individuals seeking or holding elected office, nor to handle any matter of personnel on a basis
other than fairness impartiality and merit.

Section 18: Indemnification.

Beyond that required under Federal, State or Local Law, Employer shall defend, save harmless
and indemnify Employee against any tort, professional liability claim or demand or other legal
action, whether groundless or otherwise, arising out of an alleged act or omission occurring in
the performance of Employee' s duties as City Manager or resulting from the exercise of
judgment or discretion in connection with the performance of program duties or responsibilities,
unless the act or omission involved, gross negligence willful or wanton conduct. The Employee
may request and the Employer shall not unreasonably refuse to provide independent legal

Employment Agreement
Page 8 of 11
representation at Employer' s expense and Employer may not unreasonably withhold approval.
Legal representation,provided by Employer for Employee, shall extend until a final
determination of the legal action including any appeals brought by either party. The Employer
shall indemnify employee against any and all losses, damages, judgments, interest, settlements,
fines, court costs and other reasonable costs and expenses of legal proceedings including
attorneys fees, and any other liabilities incurred by, imposed upon, or suffered by such Employee
in connection with or resulting from any claim, action, suit, or proceeding, actual or threatened,
arising out of or in connection with the performance of his or her duties. Any settlement of any
claim must be made with prior approval of the Employer in order for indemnification, as
provided in this Section, to be available.

Employee recognizes that Employer shall have the right to compromise and unless the Employee
is a party to the suit which Employee shall have a veto authority over the settlement, settle any
claim or suit; unless, said compromise or settlement is of a personal nature to Employee.
Further, Employer agrees to pay all reasonable litigation expenses of Employee throughout the
pendency of any litigation to which the Employee is a party, witness or advisor to the Employer.
Such expense payments shall continue beyond Employee' s service to the Employer as long as
litigation is pending. Further, Employer agrees to pay Employee reasonable consulting fees and
travel expenses when Employee serves as a witness, advisor or consultant to Employer regarding
pending litigation.

Section 19: Bonding.

Employer shall bear the full cost of any fidelity or other bonds required of the Employee under
any law or ordinance.

Section 20: Other Terms and Conditions of Employment.

The Employer, only upon agreement with Employee, shall fix any such other terms and
conditions of employment, as it may determine from time to time, relating to the performance of
the Employee, provided such terms and conditions are not inconsistent with or in conflict with

the provisions of this Agreement, the City of Monroe Charter, codified Ordinances or any other
law.

Except as otherwise provided in this Agreement, the Employee shall be entitled to the highest
level of benefits that are enjoyed by other [ appointed officials, appointed employees, department
heads or general employees] of the Employer as provided in the Charter, Code, Personnel Rules
and Regulations or by practice.

Section 21: Notices.

Notice pursuant to this Agreement shall be given by depositing in the custody of the United
States Postal Service, postage prepaid, addressed as follows:

Employment Agreement
Page 9 of 11
1. EMPLOYER: Mayor
City of Monroe
300 West Crowell Street( 28112)
P. O. Box 69
Monroe, NC 28111- 0069

2. EMPLOYEE: Edward L. Faison

Post Office Box 823
Whiteville, NC 28472

To be amended upon completion of arranging housing in Monroe)

Alternatively, notice required pursuant to this Agreement may be personally served in the same
manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of
personal service or as the date of deposit of such written notice in the course of transmission in
the United States Postal Service.

Section 22: General Provisions.

A. Integration. This Agreement sets forth and establishes the entire understanding between
the Employer and the Employee relating to the employment of the Employee by the
Employer. Any prior discussions or representations by or between the parties are merged
into and rendered null and void by this Agreement. The parties by mutual written
agreement may amend any provision of this Agreement during the life of the Agreement.
Such amendments shall be incorporated and made a part of this Agreement.

B. Binding Effect. This Agreement shall be binding on the Employer and the Employee as
well as their heirs, assigns, executors, personal representatives and successors in interest.

C. Effective Date. This Agreement shall become effective upon the date of execution of the
same by the appropriate officers of the City of Monroe and salary shall commence on the
day of. 2014, unless an earlier date is set forth by mutual consent of
the Employer and Employee.

D. Severability. The invalidity or partial invalidity of any portion of this Agreement will not
affect the validity of any In the event that any provision of this
other provision.

Agreement is held to be invalid, the remaining provisions shall be deemed to be in full

force and effect as if they have been executed by both parties subsequent to the
expungement or judicial modification of the invalid provision.

IN WITNESS WHEREOF, the City of Monroe has caused this Agreement to be signed and
executed in its behalf by its appropriate officers and duly attested by its City Clerk, and the
Employee has signed and executed this Agreement, both in duplicate, the day and year first
above Written.

Employment Agreement
Page 10 of 11
 CITY OF MONROE, A MUNICIPAL
CO '` ORATION

Attest:

1 Ee. & e cR 6 SI.J J 6

i
Brid ette H. Robinson, City Clerk BY: obby G ' gore, Mayor

NORTH CAROLINA
ensu . cJ(, COUNTY r _-
BY: dwar. L. Faison
1I pp
1, ?' Too,-(6e 4
r1' t e P A} irtrS W f f ;

a Notary Public in and for the County and

State aforesaid, do hereby certify that
Edward L. Faison personally appeared
before me this day and acknowledged the
t e e woe,
due execution of the foregoing instrument.
i,'
5.
WITNESS my hand and notarial seal, this z• o oYA9 *
the c- day of 3( t 2014.
1 tip
G

k".
Notary Public 0,,,
0( CDv„\
r
a®seelietd®%'
My Commission Expires: G{s r? 9

Employment Agreement
Page 11ofII
 CITY OF MONROE, A MUNICIPAL
CORPORATION

Attest:

Bridgette H. Robinson, City Clerk BY: obby G. 1-4-`gore, Mayor

NORTH CAROLINA
COUNTY
BY: Edward L. Faison
I,

a Notary Public in and for the County and

State aforesaid, do hereby certify that
Edward L. Faison personally appeared
before me this day and acknowledged the
due execution of the foregoing instrument.

WITNESS my hand and notarial seal, this

the day of 2014.

Notary Public
My Commission Expires:

Employment Agreement
Page 11 of 11
 1,
CITY OF MONROE
P. O. BOX 69 •• MONROE. NORTH CAROLINA 28111- 0069
r
I, FAX 704- 283- 9098

June 26, 2014

Mr. E. F. " Larry" Faison

P. O. Box 823
Whiteville, NC 28472

SUBJECT: OFFER OF EMPLOYMENT

Dear Larry:

During their June 17, 2014 Meeting, Council reviewed the contract that you submitted. They
discussed the provisions of the contract and directed the Interim Manager Rob Hites to amend it
and submit it on their behalf Mr. Hites has kept me apprised of your progress as the two of you
have negotiated the final details of the contract. He has informed me that you have reached an
agreement on a contract that is in line with the amendments made by Council.

Based on the authority given by the Council, I would like to make you a conditional offer of
employment outlined in the enclosed Employment Agreement. Council will discuss the
Employment Agreement in Closed Session and then open the Meeting to consider its approval
during a City Council Special Meeting being held on July 7, 2014 at 8: 30 a.m. This Meeting had
been previously scheduled to hold two public hearings regarding the recruitment and location of
industry; however, we will amend the purpose of the Meeting to add this item to the Agenda.

I wish to thank you for the spirit and good will you have displayed as we have negotiated your
employment contract with the City of Monroe. I look forward to July 7, 2014.

Sincerely

cL

y G. Ki or
ayor

BGK: rwh
Enclosure: Employment Agreement

06251401
NORTH CAROLINA
UNION COUNTY

CITY OF MONROE
EMPLOYMENT AGREEMENT

THIS AGREEMENT, hereinafter, sometimes referred to as " THE AGREEMENT" Made and
entered into this day of
2014 by and between the CITY OF MONROE, a
municipal Corporation of Union County, North Carolina, hereinafter called " Employer", party of
the first part, and Edward L. Faison, of Whiteville, North Carolina, hereinafter called
Employee", party of the second part.

WITNESSETH:

WHEREAS, Employer desires to employ the services of said Employee as City Manager for the
City of Monroe, Union County, North Carolina; and

WHEREAS, it is the desire of the City Council for the City of Monroe, ( hereinafter sometimes
referred to as " The City Council" or " The Council") to establish certain conditions of
employment to the end that such conditions will induce the Employee to remain in such

employment, to assure full work productivity and provide a just means for termination; and

WHEREAS, Employee desires to accept employment as the City Manager for the City of
Monroe;

NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties
agree as follows:

Section 1: Term.

A. The Employee shall serve at the pleasure of the City Council. Nothing in this Agreement
shall prevent, limit, or otherwise interfere with the right of the City Council to terminate
the services of the Employee at any time with or without cause, subject only to the
severance provisions set forth in the Agreement.

B. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the
Employee to resign at any time from his position with the Employer, subject only to
provisions set forth in this Agreement

C. The term of this Agreement shall be in perpetuity, the employee having a continuing
appointment provided the Employee continues to fully and faithfully discharge the
Employee' s duties as City Manager. The Agreement shall remain in effect until the

Employee voluntarily resigns or in the event that the Employee is terminated, as defined

Employment Agreement
Page 1 of 11
 in Section 9 of this Agreement, the Employee shall be entitled to all compensation
including salary accrued vacation and benefits ( excluding sick leave and vehicle
allowance) paid in accordance with Section 10 Severance, of this Agreement.

D. Employee shall give the Employer at least sixty ( 60) days advance written notice of his
intent to resign.

Section 2: Duties and Authority.

Employer agrees to employ the Employee as City Manager for the City of Monroe, to perform
the functions and duties specified in the North Carolina General Statutes, as amended, and as

referenced by the Charter and- or Codified Ordinances of the Employer, and to perform other
legally permissible and proper duties and functions.

Section 3: Compensation.

A. Base Salary: Employer agrees to pay Employee an annual base salary of ONE
HUNDRED FORTY- FIVE THOUSAND ($ 145, 000), dollars payable in installments at
the same time that the other management employees of the Employer are paid.

B. This Agreement shall be automatically amended to reflect any salary adjustments that are
provided or required by the Employer' s compensation policies.

C. The Employer agrees to increase the compensation of the Employee dependent upon the
results of the performance evaluation conducted under the provisions of Section 13 of
this Agreement.

Section 4: Health and Life Insurance Benefits.

A. Upon commencing employment the Employer agrees to provide and to pay the premiums
for health, hospitalization, surgical, vision, dental and comprehensive medical insurance

for the Employee equal to that which is provided to all other employees of the City of
Monroe.

B. The Employee may elect to submit once per calendar year to a complete physical
examination, including a cardio- vascular examination, by a qualified physician selected
by the Employee, the cost of which shall be paid by the Employee in accordance with the
City' s Health Insurance Plan.

C. The Employer shall pay the amount of premium due for term life insurance in the amount
provided by the City Council ( currently the annual base salary), including all increases in

the base salary during the life of this Agreement.

Employment Agreement
Page 2 of 11
Section 5: Vacation and Sick Leave.

A. Upon commencing employment, the Employee shall be credited with sick and vacation
leave equal to eighty ( 80) hours. The Employee shall immediately begin accruing sick
and vacation leave at the highest rate provided to any other employees. ( Twenty six ( 26)
days per year of vacation and twelve ( 12) days of sick leave).

B. The Employer shall accept accrued sick leave, earned by the Employee from previous
employment in North Carolina municipalities, as if this leave had accrued while in the
Employ of the Employer.

C. The Employee is entitled to accrue all unused leave, up to sixty ( 60) days and in the event
the Employee' s employment is terminated, either voluntarily or
involuntarily, the

Employee shall be compensated for all accrued vacation time, all paid holidays, and other
benefits not including accrued sick leave, to date.

D. In the event of termination, either voluntarily or involuntarily, the Employee shall be

compensated for all accrued vacation time as of the date of termination.

E. The Employees vacation and sick leave are exclusive of holidays recognized by the
Employer, which the Employee shall also be entitled to.

Section 6: Automobile and Cell Phone Allowances.

Upon commencing employment, the Employer agrees to compensate the Employee:

A. Automobile. Recognizing that frequent and routine travel to guide and direct the
Employer' s interests, operations, and services are related to the duties of City Manager,
and which provides direct benefits to the Employer and the community, the Employer
agrees to pay to the Employee, during the term of this Agreement and in addition to other
salary and benefits herein provided, to provide a monthly allowance of FIVE HUNDRED
DOLLARS ($ 500) per month, as a vehicle allowance to be used to purchase, lease, or

own, operate and maintain a vehicle. The Employee shall be responsible for paying for
liability, property damage, and comprehensive insurance coverage upon such vehicle and
shall further be responsible for all expenses attendant to the purchase, operation,

maintenance, repair, and regular replacement of said vehicle. The Employer shall
reimburse the Employee at the IRS standard mileage rate for any business use of the
vehicle beyond the City of Monroe area. For purposes of this Section, use of the car
within the greater City of Monroe area is defined as travel to locations within a 50 mile
radius the City of Monroe.

B. Cell Phone. Recognizing that 24/ 7 communications between the Employer and
Employee provides direct benefits to the Employer and the community, the Employee
will be compensated for a personal Cell Phone to be used for business/ personal purposes,

Employment Agreement
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 the Employer agrees to provide a monthly allowance of ONE HUNDRED DOLLARS
100) per month.

Section 7: Retirement.

A. The Employer agrees to enroll the Employee into the North Carolina Local Government
Employees Retirement System ( NCLGERS) and to make all the appropriate contributions
on the Employee' s behalf, for both the Employer and Employee share required.

B. In addition to the Employer' s payment to the NCLGERS as referenced above, Employer

agrees to execute all necessary agreements provided by ICMA Retirement Corporation

ICMA- RC] or other Section 457 deferred compensation plan for Employee' s

participation in said supplementary retirement plan and, in addition to the base salary
paid by the Employer to Employee, Employer agrees to pay an amount equal to the
percent contributed
by the Employer on behalf of City Employees. The dollar value of
this contribution may be used, at the Employee' s option, to purchase previous service
from another qualified plan.

Section 8: General Business Expenses.

A. Employer agrees to budget for and to pay for professional dues and subscriptions of the
Employee necessary for continuation and full participation in national, regional, state,
and local associations, and organizations necessary and desirable for the Employee' s
continued professional participation, growth, and advancement, and for the good of the
Employer.

B. Employer agrees to budget for and to pay for travel and subsistence expenses of
Employee for professional and official travel, meetings, and occasions to adequately
continue the professional development of Employee and to pursue necessary official
functions for Employer, including but not limited to the ICMA Annual Conference, the
state league of municipalities, and such other national, regional, state, and local
governmental groups and committees in which Employee serves as a member.

C. Employer also agrees to budget for and to pay for travel and subsistence expenses of
Employee for short courses, institutes, and seminars that are necessary for the
Employee' s professional development and for the good of the Employer.

D. Employer recognizes that certain expenses of a non- personal but job related nature are
incurred by Employee, and agrees to reimburse or to pay said general expenses. The

Finance Director is authorized to disburse such moneys upon receipt of duly executed
expense or petty cash vouchers, receipts, statements or personal affidavits.

E. The Employer acknowledges the value of having Employee participate and be directly
involved in local civic clubs or organizations. Accordingly, Employer shall pay for the

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 reasonable membership fees and/ or dues to enable the Employee to become an active
member of one ( 1) local civic club or organization.

Section 9: Terminations.

For the purpose of this Agreement, termination shall occur when:

A. The majority of the governing body votes to terminate the Employee at a duly authorized
public meeting; OR

B. If the Employer, citizens or legislature acts to amend any provisions of the Charter,
Ordinances or appropriate enabling legislation pertaining to the role, powers, duties,
authority, responsibilities of the Employee' s position that substantially changes the form
of government, the Employee shall have the right to declare that such amendments
constitute termination; OR

C. If the Employee resigns following an offer to accept resignation, whether formal or

informal, by the Employer as representative of the majority of the governing body that
the Employee resign, then the Employee may declare a termination as of the date of the
suggestion; OR

D. Breach of contract declared by either party with a 30 day cure period for either Employee
or Employer. Written notice of a breach of contract shall be provided in accordance with
the provisions of Section 20; OR

E. In the event the Employer at any time during the term of this Agreement reduces the
salary or other financial benefits of Employee in a greater percentage that an applicable
across- the- board reduction for all employees of Employer; or in the event Employer
refuses,
following written notice, to comply with any other provision benefiting
Employee herein, then, in that event, Employee, may, at his option, be deemed to be
terminated" at the date of such reduction or such refusal to comply within the meaning
and context of the herein severance pay provision; OR

F. If the Employer terminates, suspends, rescinds, cancels, or otherwise ends this

Agreement; OR

G. If the Employee resigns following an offer to accept resignation by the Employer upon
due action of the governing body at a duly authorized public meeting.

Section 10: Severance.

Severance shall be paid to the Employee when employment is terminated as defined in Section 9.
If the Employee is terminated, the Employer shall provide a minimum severance payment equal
to one ( 1) year gross salary and benefits, based at the then current rate of compensation. This

Employment Agreement
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severance shall be paid in twelve ( 12) equal monthly installments, unless otherwise agreed to by
the Employer and the Employee.

The Employee shall also be compensated for all accrued vacation time and all paid holidays.

For a minimum period of one ( 1) year following termination, the Employer shall pay the cost to
continue the following benefits:

1. Health insurance for the employee and all dependents as provided in Section 5( A);

2. Life insurance as provided in Section 5( D);

3. Any other available benefits ( excluding sick leave and vehicle allowance).

If the Employee is terminated due to conviction of any illegal act involving personal gain to the
Employee, a felony, or a Class Al misdemeanor which involves moral turpitude, then the
Employer is not obligated to pay severance under this section.

Section 11: Disability.

If the Employee is permanently disabled or is otherwise unable to perform his duties because of
sickness, accident, injury, mental incapacity or health for a period beyond any accrued sick
leave, Employer shall have the option to terminate this Agreement, subject to the severance pay
requirements contained herein.

Section 12: Resignation.

In the event that the Employee voluntarily resigns his position with the Employer, the Employee
shall provide a minimum of sixty (60) days notice unless the parties agree otherwise.

Section 13: Performance Evaluation.

Employer will complete a review of the Employee' s performance and consider a salary
adjustment within six ( 6) months of commencing employment. Thereafter, the Employer will
complete a Performance Review of Employee at twelve ( 12) month intervals. Performance

Reviews will be subject to a process, form, criteria, and format for the evaluation, which shall be
mutually agreed upon by the Employer and Employee.

Annually, the City Council and Manager will define goals and performance objectives which
they determine necessary for the proper operation of the City and in the attainment of the City
Council' s policy objectives and shall further establish a relative priority among those various
goals and objectives, said goals and objectives to be reduced to writing. The goals and

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objectives shall generally be attainable within the time limitation as specified and the annual
operating and capital budget and appropriations that can be provided.

The process at a minimum shall include the opportunity for both parties to:

1. Prepare a written evaluation;

2. Meet and discuss the evaluation; and,

3. Present a written summary of the evaluation results.

A performance based salary adjustment

may be provided
by the Employer. The final written

evaluation and salary adjustment, if any, will be completed and delivered to the Employee within
thirty (30) days of the evaluation meeting.

In effecting the provisions of this section, the City Council and Manager mutually agree to abide
by the provisions of any and all applicable laws.

Section 14: Hours of Work.

It is recognized that the Employee must devote a great deal of time outside the normal office
hours on business for the Employer, and to that end Employee shall be allowed to establish an
appropriate and flexible work schedule.

Section 15: Outside Activities.

The employment provided for by this Agreement shall be the Employee' s sole employment.
Recognizing that certain outside consulting or teaching opportunities provide indirect benefits to
the Employer and the community, the Employee may elect to accept WITH PRIOR NOTICE,
limited teaching, consulting with the understanding that such arrangements shall not constitute
interference with, nor a conflict of interest with his or her responsibilities under this Agreement.

Section 16: Moving and Relocation Expenses.

Employee agrees to reside within the corporate boundaries of the local government within twelve
12) months of employment, and thereafter to maintain a house, condominium, town home or
apartment within the corporate boundaries of the local government, unless the parties agree
otherwise.

A. Employer shall pay directly for the expenses of moving Employee and his family and
personal property from Whiteville, North Carolina to Monroe, North Carolina. Said

moving expenses including packing, moving, storage costs, unpacking, and insurance
charges, up to FIVE THOUSAND DOLLARS ($ 5, 000). The Employer may reimburse

Employment Agreement
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 the Employee for substantiated moving expenses based up on the submitted of invoices
for services rendered.

B. Employer shall pay Employee an interim housing supplement of ONE THOUSAND

FIVE HUNDRED DOLLARS ($ 1, 500) per month for a period commencing on or about
the effective date of employment, and shall continue for a maximum of six ( 6) months, or

until a home is purchased and closed on, within the corporate limits of the City of
Monroe, whichever event occurs first.

C. The Employee shall be reimbursed, or Employer may pay directly, for the expenses of
packing and moving from temporary housing to permanent housing during the first year
of this Agreement. The reimbursement shall be considered a part of the FIVE
THOUSAND DOLLARS ($ 5, 000) moving, relocation supplement.

D. The Employee shall be reimbursed for the cost of travel, meals and lodging incurred
while visiting Monroe and or searching for housing prior to the Employee' s second week
of work.

E. The Employer shall pay the Employee' s tax liability on all Employer provided benefits
for relocation and housing.

Section 17: Ethical Commitments.

Employee will at all times uphold the tenets of the ICMA Code of Ethics, a copy of which is
attached hereto and incorporated herein. Specifically, Employee shall not endorse candidates,
make financial contributions, sign or circulate petitions for a candidate, or participate in funding
activities for individuals seeking or holding elected office, nor seek or accept any personal
enrichment or profit derived from confidential information or misuse of public time. Employer

shall support commitments by refraining from any order, direction, or request that would require
Employee to violate the ICMA Code of Ethics. Specifically, neither the governing body nor any
individual member thereof shall request Employee to endorse any candidate, make any financial
contribution, sign or circulate any petition, or participate in any fund raising activity for
individuals seeking or holding elected office, nor to handle any matter of personnel on a basis
other than fairness impartiality and merit.

Section 18: Indemnification.

Beyond that required under Federal, State or Local Law, Employer shall defend, save harmless
and indemnify Employee against any tort, professional liability claim or demand or other legal
action, whether groundless or otherwise, arising out of an alleged act or omission occurring in
the performance of Employee' s duties as City Manager or resulting from the exercise of
judgment or discretion in connection with the performance of program duties or responsibilities,
unless the act or omission involved, gross negligence willful or wanton conduct. The Employee
may request and the Employer shall not unreasonably refuse to provide independent legal

Employment Agreement
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representation at Employer' s expense and Employer may not unreasonably withhold approval.
Legal representation, provided
by Employer for Employee, shall extend until a final
determination of the legal including any
action
by
appeals brought
party. either The Employer

shall indemnify employee against any and all losses, damages, judgments, interest, settlements,
fines, court costs and other reasonable costs and expenses of legal proceedings including
attorneys fees, and any other liabilities incurred by, imposed upon, or suffered by such Employee
in connection with or resulting from any claim, action, suit, or proceeding, actual or threatened,
arising out of or in connection with the performance of his or her duties.
Any settlement of any
claim must be made with prior approval of the Employer in order for indemnification, as
provided in this Section, to be available.

Employee recognizes that Employer shall have the right to compromise and unless the Employee
is a party to the suit which Employee shall have a veto authority over the settlement, settle any
claim or suit; unless, said compromise or settlement is of a personal nature to Employee.

Further, Employer agrees to pay all reasonable litigation expenses of Employee throughout the
pendency of any litigation to which the Employee is a party, witness or advisor to the Employer.
Such expense payments shall continue beyond Employee's service to the Employer as long as
litigation is pending.
Further, Employer agrees to pay Employee reasonable consulting fees and
travel expenses when Employee serves as a witness, advisor or consultant to Employer regarding
pending litigation.

Section 19: Bonding.

Employer shall bear the full cost of any fidelity or other bonds required of the Employee under
any law or ordinance.

Section 20: Other Terms and Conditions of Employment.

The Employer, only upon agreement with Employee, shall fix any such other terms and
conditions of employment, as it may determine from time to time, relating to the performance of
the Employee, provided such terms and conditions are not inconsistent with or in conflict with
the provisions of this Agreement, the City of Monroe Charter, codified Ordinances or any other
law.

Except as otherwise provided in this Agreement, the Employee shall be entitled to the highest
level of benefits that are enjoyed by other [ appointed officials, appointed employees, department
heads or general employees] of the Employer as provided in the Charter, Code, Personnel Rules
and Regulations or by practice.

Section 21: Notices.

Notice pursuant to this Agreement shall be given by depositing in the custody of the United
States Postal Service, postage prepaid, addressed as follows:

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1. EMPLOYER: Mayor

City of Monroe
300 West Crowell Street( 28112)
P. O. Box 69
Monroe, NC 28111- 0069

2. EMPLOYEE: Edward L. Faison

Post Office Box 823
Whiteville, NC 28472

To be amended upon completion ofarranging housing in Monroe)

Alternatively, notice required pursuant to this Agreement may be personally served in the same
manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of
personal service or as the date of deposit of such written notice in the course of transmission in
the United States Postal Service.

Section 22: General Provisions.

A. Integration. This Agreement sets forth and establishes the entire understanding between
the Employer and the Employee relating to the employment of the Employee by the
Employer. Any prior discussions or representations by or between the parties are merged
into and rendered null and void by this Agreement. The parties by mutual written
agreement may amend any provision of this Agreement during the life of the Agreement.
Such amendments shall be incorporated and made a part of this Agreement.

B. Binding Effect. This Agreement shall be binding on the Employer and the Employee as
well as their heirs, assigns, executors, personal representatives and successors in interest.

C. Effective Date. This Agreement shall become effective upon the date of execution of the

same by the appropriate officers of the City of Monroe and salary shall commence on the
day of 2014, unless an earlier date is set forth by mutual consent of
the Employer and Employee.

D. Severability. The invalidity or partial invalidity of any portion of this Agreement will not
affect the validity of any other provision. In the event that any provision of this
Agreement is held to be invalid, the remaining provisions shall be deemed to be in full
force and effect as if they have been executed by both parties subsequent to the
expungement or judicial modification of the invalid provision.

IN WITNESS WHEREOF, the City of Monroe has caused this Agreement to be signed and
executed in its behalf by its appropriate officers and duly attested by its City Clerk, and the
Employee has signed and executed this Agreement, both in duplicate, the day and year first
above written.

Employment Agreement
Page 10 of 11
 CITY OF MONROE, A MUNICIPAL
CORPORATION

Attest:

Bridgette H. Robinson, City Clerk BY: Bobby G. Kilgore, Mayor

NORTH CAROLINA
COUNTY
BY: Edward L. Faison
I,

a Notary Public in and for the County and

State aforesaid, do hereby certify that
Edward L. Faison personally appeared
before me this day and acknowledged the
due execution of the foregoing instrument.

WITNESS my hand and notarial seal, this

the day of 2014.

Notary Public
My Commission Expires:

Employment Agreement
Page 11 of 1 1
a

7
0 , ,
CITY OF MONROE

i:
N'.
P. O. BOX 69 • MONROE. NORTH CAROLINA
FAX 704- 283- 9098
28111- 0069

June 11, 2014

Mr. E. F. " Larry" Faison

P. O. Box 823
Whiteville, NC 28472

RE: OFFER OF EMPLOYMENT

Dear Larry:

On behalf of the Monroe City Council, it is my pleasure to make this conditional offer of
employment for the position of City Manager. You successfully completed a rigorous two day
assessment center as well as a personal interview with Council. After considering your
performance during the assessment center and your life and work experience the Council
unanimously requested that the Interim City Manager and I negotiate an acceptable employment
agreement with you and recommend it to Council.

I would like to make you the following offer which is based on your position within the pay
structure of the City, the benefits provided to high level employees and the employment
agreements made to former managers and department heads.

Salary: $ 145, 000 with a 5% increase after successfully completing a probationary review.

Severance Contract: The City shall provide a lump sum payment of 6 ( six) month' s salary and
benefits should you be terminated " without cause." This term would be defined as
demonstrated dereliction of duties as manager, conduct constituting moral turpitude or
conviction of a Class " A" Misdemeanor or felony." ( Severance contract is separate document
mutually agreed to and signed).

Moving Expenses: The City shall compensate you for hotel and meal costs while searching for
housing before your initial day of work based on presentation of receipts for such expenses. The
City shall pay you the cost of packing and moving based on actual receipts up to a cost of
5, 000.

The the rate of$ 1, 200 per month

Temporary Housing Expenses: City shall compensate you at

for a period of six ( 6) months for expenses related to temporary housing.

Mr. E. F." Larry" Faison
June 11, 2014

Page 2 of 2

401K: The City will match a 3% contribution to a 401K with an additional 2% ( after six months

of employment).

Retirement: The City will contribute the actuarial amount set by the NCLGRS after the
employee share of 6%.

Health Insurance: The City will pay the employee cost of health care and will cover other family
members through an employee contribution.

Vacation Leave: The Manager shall receive annual leave accruing at the rate of twenty six ( 26)
days per year. The Manager shall be credited with ten ( 10) days of annual leave upon his initial
employment.

Sick Leave: The City shall provide sick leave at the rate of twenty six ( 26) days per year and
shall permit the Manager to transfer any accrued sick leave from his previous municipal
employers.

Holidays: City employees have been granted eleven ( 11) holidays which may be adjusted at the
will of the City Council.

Automobile Allowance: The Manager shall be granted a$ 500 monthly automobile allowance.

Cell phone Allowance: The Manager shall be paid a$ 100 per month stipend for cell phone.

Internet Allowance: The Manager shall be paid an interne allowance of$ 45 per month.

Condition of Employment:
The offer presented above is subject to the employee passing a pre
employment physical, background
review and
drug screening. The Human Resources

Department will set up the physical and drug screening at the City' s contract medical firm.

The above represents the entire City of Monroe and E. F. Faison. Any
agreement between the

amendment to this contract shall be carried out with the consent of the City Council.

Signed this the day of June, 2014.

E. F. Faison y Kilgor-, 1 ayor

06111401