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<br />B. In the event written notice is not given by either party to this Agreement to the <br />other ninety (90) days prior to the termination date as herein proved, this <br />Agreement shall be extended on the same terms and on conditions as herein <br />provided, all for an additional period of one (1) year. Said Agreement shall <br />continue thereafter for one (1) year periods unless either party hereto gives <br />ninety (90) days' written notice to the other party that the party does not wish to <br />extend this Agreement for an additional one (1) year term. <br /> <br />Section 3. Termination and Severance Pay <br /> <br />A. Pursuant to the provisions of Section 3.01(b) of the Home Rule Charter of the <br />City of La Porte, the City Manager may be appointed and removed at the will and <br />pleasure of the City Council by a vote of the majority of the entire City Council. In <br />the event Employee is terminated by the Council before expiration of the <br />aforesaid term of employment and during such time that Employee is willing and <br />able to perform her duties under this Agreement, then and in that event Employer <br />agrees to pay Employment as severance pay and liquidated damages, eight (8) <br />weeks' salary and benefits, payable in installments over Employer's normal pay <br />periods. In the event Employee secures other employment during such eight (8) <br />week period, the amount of such salary payments shall be reduced by the <br />amount of salary payment received by Employee from such new employment. In <br />the event Employee is terminated by Council for cause, as defined in the current <br />edition of the City of La Porte Employee Policies Handbook, Employer shall have <br />no obligation to pay the severance pay and liquidated damages designated in <br />this paragraph. However, Employee shall be compensated for any accrued sick <br />leave, holiday, and other accrued benefits. <br /> <br />B. In the event Employer at any time during the term of this Agreement reduces the <br />salary or other financial benefits of Employee in a greater percentage than an <br />applicable across-the-board reduction for all employees of Employer, or the <br />Employee resigns following a suggestion whether formal or informal, by the <br />Council that she resign, then, in that event Employee may, at her option, be <br />deemed to be "terminated" at the date of such reduction or such refusal to <br />comply within the meaning and context of the herein severance pay provision. <br /> <br />C. In the event Employee voluntarily resigns her position with Employer before <br />expiration of the aforesaid term of his employment, then Employee shall give <br />Employer thirty (30) days notice in advance, unless the parties otherwise agree. <br /> <br />Section 4. Disability <br /> <br />If Employee is permanently disabled or is otherwise unable to perform her duties <br />because of sickness, accident, injury, mental incapacity or health for a period of four <br />successive weeks beyond any accrued sick leave, or for twenty (20) working days over <br />a thirty (30) working day period, Employer shall have the option to terminate this <br />Agreement subject to the severance pay requirements of Section 3, paragraph A. <br />However, Employee shall be compensated for any accrued sick leave, vacation, <br />holidays, and other accrued benefits. <br /> <br />2 <br />