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e . section 3. Termination and Severance Pay A. Pursuant to the provisions of section 3.01 (b), of the Home Rule Charter of the City of La Porte, the City Manager may be appointed and removed at the will and pleasure of the City Council by a vote of the majority of the entire City Council. In the event Employee is terminated by the Council before expiration of the aforesaid term of employment and during such time that Employee is willing and able to perform his duties under this Agreement, then and in that event Employer agrees to pay Employee as severance pay and liquidated damages, twenty-four (24) weeks salary and benefits, payable in installments over Employer's normal pay periods. In the event Employee secures other employment during such twenty-four (24) week period, the amount of such salary payments shall be reduced by the amount of salary payments received by Employee from such new employment. In the event Employee is terminated by Council for cause, as defined in the current edition of the City of La Porte Personnel Policy Manual, Employer shall have no obligation to pay the severance pay and liquidated damages designated in this paragraph. B. In the event Employer at any time during the term of this Agreement reduces the salary or other financial benefits of Employee in a greater percentage than an applicable across- the-board reduction for all employees of Employer, or the Employee resigns following a suggestion whether formal or informal, by the Council that he resign, 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. C. In the event Employee voluntarily resigns his position with Employer before expiration of the aforesaid term of his employment, then Employee shall give Employer thirty (30) days notice in advance, unless the parties otherwise agree. section 4. Disability If Employee is permanently disabled or is otherwise unable to perform his duties because of sickness, accident, injury, mental incapacity or health for a period of four successive weeks beyond any accrued sick leave, or for twenty (20) working days over a thirty (30) working day period, Employer shall have the option to terminate this Agreement subject to the severance pay requirements of section 3, paragraph A. However, Employee shall be compensated for any accrued sick leave, vacation, holidays, and other accrued benefits. section 5. Salary Employer agrees to pay Employee for his services rendered pursuant hereto an annual base salary of $74.735.00 payable in installments at the same time as other employees of the Employer are paid. In addition, Employer agrees to increase said base salary and/or other benefits of Employee in such amounts and to such extent as the Council may determine that it is desirable to do so on the basis of an annual salary review of said Employee made at the same time as similar consideration is given other employees generally. section 6. Performance Evaluation A. The Council shall review and evaluate the performance of the Employee at least once annually. Said review and evaluation shall be in accordance with specific criteria developed jointly by Employer and Employee. Said criteria may be added to or deleted from as the Council may from time to time 2