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response to such proposed termination. Employee's failure to appear at such hearing does <br />not prohibit the Council from taking action to terminate Employee. Employee shall have the <br />option to request a public hearing. <br />D. Resignation by Employee. In the event Employee voluntarily resigns his position with the <br />City during the term of this Agreement, then Employee shall give the City 30 days notice in <br />advance, unless the parties agree otherwise in writing. <br />Section 14: Severance <br />A. Termination without cause: <br />The City will pay Employee a lump sum cash payment for all base salary earned, earned <br />unused vacation (the same as general employees), earned unused sick leave (up to 90 <br />days), and other benefits that were earned but unused as of the last day of active <br />employment. <br />2. The City will pay the Employee a lump sum cash payment equal to six (6) months base <br />salary. One (1) additional month of severance will accrue following the completion of <br />each successive year of employment, up to a maximum severance payment of twelve <br />(12) months. This payment is contingent upon a waiver and release of all claims against <br />the City in a form acceptable to the City. <br />B. Termination for cause: In the event Employee is terminated for cause as defined in this <br />document, the City shall have no obligation to pay the severance pay and severance <br />benefits designated in this Agreement. <br />C. Resignation by Employee: The City will pay Employee a lump sum cash payment for all <br />salary earned, earned unused vacation (the same as general employees), earned unused <br />sick leave (up to 90 days), and other benefits that were earned but unused as of the last <br />day of active employment. <br />Section 15: Notices <br />Notices pursuant to this agreement shall be given by deposit in the custody of the United States <br />Postal Service, postage prepaid, addressed as follows: <br />(1) CITY: Mayor <br />City of San Marcos <br />630 East Hopkins <br />San Marcos, Texas 78666 <br />(2) EMPLOYEE: James R. Nuse <br />City Manager's Office <br />630 East Hopkins <br />San Marcos, Texas 78666 <br />Alternatively, notices required pursuant to this Agreement may be personally delivered. Notice <br />shall be deemed given as of the date of personal delivery. <br />Section 16: Arbitration <br />Any and all disputes arising out of or relating to this Agreement, or the Employee's employment <br />with the City or the termination thereof, shall be resolved solely by arbitration in San Marcos, <br />Texas under the then existing rules of the American Arbitration Association for employment <br />dispute resolution. Judgment upon the award rendered may be entered in any court of <br />competent jurisdiction. The cost of such arbitration shall be borne equally by the parties. <br />Page 4 of 6 <br />