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<br />2.6 Indemnification. To the extent it may be permitted to do by applicable law,
<br />including, but not limited to Texas Civil Practice & Remedies Code Chapter 102, the City does
<br />hereby agree to defend, hold harmless, and indemnify Manager from any and all demands,
<br />claims, suits, actions, judgments, expenses and attorneys' fees incurred in any legal
<br />proceedings brought against Manager in the Manager's individual or official capacity as an
<br />employee and as City Manager, providing the incident(s), which is (are) the basis of any such
<br />demand, claim, suits, actions, judgements, expenses and attorneys' fees, arose or does arise in
<br />the future from an act or omission of Manager, as an employee of the City, acting within the
<br />course and scope of the Manager's employment with the City, excluding, however, any such
<br />demand, claim, suits, actions, judgments, expenses and attorneys' fees for those claims or any
<br />causes of action where it is determined that the Manager committed official misconduct, or
<br />committed a willful or wrongful act or omission, or any act or omission constituting gross
<br />negligence, or acted in bad faith; and excluding any costs, fees, expenses or damages that
<br />would be recoverable or payable under an insurance contract, held either by the City or by the
<br />Manager. The selection of the Manager's legal counsel shall be with the mutual agreement of
<br />the Manager and the City if such legal counsel is not also City's legal counsel. A legal defense
<br />may be provided through insurance coverage, in which case the Manager's right to agree to
<br />legal counsel provided for him will depend on the terms of the applicable insurance contract.
<br />To the extent this Paragraph 2.6 exceeds the authority provided and limitations imposed by the
<br />Texas Civil Practice & Remedies Code, Chapter 102, it shall be construed and modified
<br />accordingly. The provisions of this Paragraph 2.6 shall survive the termination, expiration or
<br />other end of this Agreement and/or the Manger's employment with the City.
<br />
<br />2.7 Appropriation. The Council has appropriated, set aside and encumbered, and does
<br />hereby appropriate, set aside, and encumber, available and otherwise unappropriated funds of
<br />the City in an amount sufficient to fund and pay all financial obligations of the City pursuant to
<br />this Agreement.
<br />
<br />2.8 Hours of work. The Manager acknowledges the proper performance of the City
<br />Manager's Duties require the Manager to generally observe normal business hours and will also
<br />often require the performance of necessary services outside of normal business hours. The
<br />Manager agrees to devote such additional time as is necessary for the full and proper
<br />performance of the City Manager's Duties and that the compensation herein provided includes
<br />compensation for the performance of all such services. However, the City intends that
<br />reasonable time off be permitted the Manager, such as is customary for exempt employees so
<br />long as the time off does not interfere with the needs of the City or the normal conduct of the
<br />office of the City Manager. The Manager will devote full time and effort to the performance of
<br />the City Manager's Duties, and shall remain in the exclusive employee of the City during the
<br />term of this Agreement.
<br />
<br />III. Compensation
<br />
<br />3.1 Salary. The City shall provide the Manager with an annual salary in the sum of One
<br />Hundred Ten Thousand and no/100 Dollars ($110,000). This annual salary rate shall be paid
<br />to the Manager in equal installments on the schedule as other City employees and shall be paid
<br />net of any applicable withholding or deductions required by the Applicable Laws and Authorities.
<br />
<br />3.2 Salary adjustments. At any time during the term of this Agreement, the Council may,
<br />in its discretion, review and adjust the salary of the Manager, but in no event shall the Manager
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