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Contract No. 1991-04EMPLOYMENT AGREEMENT THIS AGREEMENT is made and entered into this 17th day of January, 1991, between the KODIAK ISLAND BOROUGH (hereinafter BOROUGH) and Gaye J. Vaughan, (hereinafter CLERK). WHEREAS, the BOROUGH wishes to continue employing the services of Gaye J. Vaughan as CLERK of the KODIAK ISLAND BOROUGH; and WHEREAS, the BOROUGH and CLERK desire to provide for certain procedures, benefits, and requirements regarding the employment of CLERK by BOROUGH; and WHEREAS, the CLERK wishes to continue employment as CLERK of said BOROUGH; and NOW, THEREFORE, BOROUGH and CLERK agree to the following terms and conditions: Section 1. Duties and Nature of Emnlovment (A) BOROUGH hereby agrees to employ CLERK, and CLERK agrees to be employed by BOROUGH, in the position of Borough Clerk. CLERK is an at will employee who serves at the pleasure of the Borough Assembly. CLERK is an administrative and/or executive employee of the legislative branch of borough government, and therefore CLERK is not entitled to receive overtime compensation. (B) The CLERK shall perform all duties and functions assigned to CLERK by law, and such other duties and functions as the Borough Assembly shall from time to time prescribe. Section 2. Termination of Emolovment and Severance Pa (A) The Borough Assembly may terminate the CLERK at any time, for any reason or for no reason, by delivering to the Clerk written notice of termination. In the event of termination other than for good cause, the Borough shall pay to Clerk as severance pay an amount equal to two month's salary. However, if the Clerk is terminated for good cause, Borough shall not pay severance pay to Clerk. For this purpose the term "good cause" shall mean: (1) A willful breach, disregard, or habitual neglect of duties assigned to the Clerk by law or by the Assembly. (2) Any conduct of Clerk bringing public embarrassment or ridicule to the Borough. (3) Any misconduct of Clerk involving an act of moral turpitude or illegality. Employment Agreement - Borough/Clerk Page 1 of 4 (B) Clerk may resign her employment as Borough Clerk at any time, for any reason or £or no reason, by delivering to the presiding officer of the Borough Assembly notice of resignation at least thirty days prior to the effective date of resignation. If the Clerk resigns, the Borough shall not pay severance pay to the Clerk. Section 3. Conditions of Employment Clerk shall receive the salary and benefits, and shall work under the terms and conditions, specified below during the period from October 1, 1990, through September 30, 1991, unless Clerk's employment is terminated during that period as provided in Section 2 above. If Clerk's employment is not previously terminated, on or before September 30, 1991, the parties shall negotiate salary, benefits, and other conditions of employment for the following twelve months. Section 4. Salary BOROUGH agrees to pay CLERK for her services rendered pursuant hereto an annual base salary of Fifty-five Thousand Seven Hundred Four Dollars ($55,704.00) payable in installments at the same time as other employees of BOROUGH are paid. CLERK'S performance shall be reviewed every year after the effective date of this agreement. Section 5. Dues and Subscriptions BOROUGH agrees to budget and to pay the dues of CLERK for membership in professional and civic organizations and subscriptions of CLERK necessary for her continuation and full participation in national, state, and local associations and organizations necessary and desirable for her continued professional participation, growth and advancement, and for the good of the BOROUGH. Section 6. Professional Development (A) BOROUGH hereby agrees to budget and to pay the travel and subsistence expenses of CLERK for professional and official travel, meetings and occasions adequate to continue the professional development of CLERK and to adequately pursue necessary official and other functions for BOROUGH, including but not limited to, the International Institute of Municipal Clerks, the Alaska Municipal League, and the Alaska Association of Municipal Clerks, and any other meeting which the Assembly shall designate, all as consistent with the provisions of Sections 801 and 803 of the Kodiak Island Borough Personnel Rules and Regulations. (B) BOROUGH also agrees to budget and to pay for the travel and Employment Agreement - Borough/Clerk Page 2 of 4 subsistence expenses of CLERK for short courses, institutes and seminars that are necessary for her professional development and for the good of BOROUGH as approved by Assembly. Section 7. Annual and Sick Leave CLERK shall accrue annual and sick leave at the rate presently in force for other BOROUGH employees. Upon separation, accrued annual leave shall be paid to CLERK. Section 8. Insurance (A) Health Insurance. BOROUGH agrees to put into force and to make required premium payments for CLERK for comprehensive medical and dental plans equal to at least that program provided other regular employees. (B) Life Insurance. BOROUGH shall provide CLERK term life insurance policy in accordance with current Borough personnel policy. Section 9. Retirement BOROUGH agrees to contribute to the Alaska Public Employees Retirement System for CLERK to the extent presently in force for other BOROUGH employees. Section 10. Indemnification BOROUGH agrees to defend, save and hold harmless, and indemnify CLERK against any tort claim, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission by CLERK arising out of the course and scope of her employment; provided, however, that the aforementioned obligation of the BOROUGH shall not extend to claims based on the following acts of misconduct: (1) A willful breach, disregard or habitual neglect of duties requested of CLERK by the Borough Assembly formally communicated to CLERK or required to be performed by Clerk hereunder or under the ordinances of the Kodiak Island Borough and the laws of the Unites States and the State of Alaska; (2) Any conduct of the Clerk bringing public embarrassment or ridicule to the Borough; or (3) Any misconduct of the Clerk involving an act of moral turpitude or of illegality. Borough will defend, compromise or settle any such claim or suit Employment Agreement - Borough/Clerk Page 3 of 4 and pay the amount of any settlement or judgment rendered thereon. Section 11. General Provisions A) The text herein shall constitute the entire Agreement between the parties. B) This Agreement shall be binding upon and inure to the benefit of the heirs-at-law and executors of CLERK. C) This Agreement, subject to the provisions of Section 2 hereof, shall become effective commencing October 1 , 1990 and extends through September 30 , 1991. D) If any provision, or any portion thereof, contained in this Agreement is held to be unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect. IN WITNESS WHEREOF the parties have executed this Agreement on this 18th day of January, 1991. KODIAK ISLAND BOROUGH (BOROUGH) J L. MC RLAN SSEMBLY PR NG OFFICER Employment Agreement - Borough/Clerk Page 4 of 4 CLERK GAYE AUGHAN, CMC/AAE BOROUGH CLERK