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f) CLIENT INTERVIEWS: PACE will schedule interviews between the City Council and <br />candidates selected for the position. <br />g) REFERENCE CHECKING: PACE will provide an in-depth reference check of each of <br />the final candidates chosen by the City Council prior to the final interview by the City <br />Council and extension of an offer to said candidate. Said reference checking shall <br />consist of telephone or personal interviews by PACE personnel of former supervisors, <br />subordinates, peers and others having knowledge of each of the selected candidates. <br />PACE will conduct full financial and Criminal Background Checks on candidates that <br />the City Council requests. <br />h) PERSONALITY TESTING: Because a "good fit" between the people of the staff, City <br />Council and the future City Manager is required, The PACE Group recommends that <br />a thorough personality test be administered by us for each candidate. From the test <br />results, a complete personality work profile will be developed. This profile will delineate <br />the management style of each candidate and his or her preferred working environment. <br />We will present this information to you prior to the candidate interviews. <br />i) OFFER: PACE will work closely with the City Council in developing a responsible offer <br />to the candidate selected. <br />2. STAFFING: The executive search provided by PACE will be conducted by PACE President <br />John M. Lovorn, Jr., Daniel Logan, Chief Operating Officer, and Allison Morris, Vice <br />President <br />3. FEES: PACE fee for conducting an Executive Search for the City Manager herein provided <br />is 33.33% of the first year base salary of the selected candidate; provided, however, the fee <br />shall not exceed 33.33% of the current budgeted salary (exclusive of benefits) for the City <br />Manager as set out in the 2006-2007 City Budget attached hereto as Exhibit "A". CITY <br />shall also reimburse PACE fordirectout-of-pocket expenses as set forth below. We request <br />that our fee be paid according to the following schedule: <br />a) $10,000 upon completion of the needs assessment interviews. <br />b) $10,000 upon completion of the candidate profiles. Payment of this amount is due upon <br />the presentation of the selected candidates in written form to the City Council. <br />c) The balance of 33.33% upon acceptance by the candidate. <br />4. INDEMNITY: PACE agrees to indemnify and hold the CITY, its elected officials, officers and <br />employees harmless from any and all claims, liabilities, losses and expanses arising out of, <br />or resulting from, any and all activities conducted by PACE. <br />5. GUARANTEE -The PACE Group provides a one year guarantee under this <br />Agreement. Should the City Manager candidate hired by the City Council leave the <br />CITY for any reason during the first year of employment (including but not limited to: <br />resignation, termination or illness) the PACE Group will conduct another City <br />Manager search for no fee. But CITY will reimburse PACE for reasonable and <br />necessary out-of-pocket expenses. Example- Should Mrs. Jones be employed as the <br />new City Manager and decides to leave the organization within 365 days of the start <br />of employment or should she be terminated by the organization then the PACE <br />Group would conduct another City Manager search for no fee. <br />2 <br />