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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 incidents}, which is (are) the basis of any such <br />demand, claim, suits, actions, judgments, 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 agreemenf 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 andlor the Manger's employment with the City. <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 />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 />III. Compensation <br />3.1 Salary. The City shall provide the Manager with an annual gross salary in the sum of <br />One Hundred Ten Thousand and no/100 Dollars ($110,000). The actual salary received by the <br />City Manager will be the annual gross salary less all applicable withholding taxes and <br />deductions required by all Applicable Laws and Authorities and the City Manager's salary shall <br />be paid in equal installments on the same schedule that other City employees are paid. <br />Page 3 of 8 <br />