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EMPLOYMENT AGREEMENT THIS AGREEMENT is between the CITY OF SAN LEANDRO ("City") and STEPHEN L. HOLLISTER and is dated for convenience this 1St day of July, 2010. Recitals City desires to employ Stephen L. Hollister as City Manager of the City of San Leandro. Stephen L. Hollister desires to serve as City Manager of the City of San Leandro. The City Council, as the appointing authority, and Stephen L. Hollister desire to agree in writing to the terms and conditions of Stephen L. Hollister's employment as City Manager. AGREEMENT DUTIES (a) City agrees to employ Stephen L. Hollister ("Employee") as City Manager of the City of San Leandro to perform the functions and duties specified in the charter, ordinances, and resolutions of City. Employee shall also perform other legally permissible and proper duties and functions as the City Council may from time to time assign. (b) Employee shall perform his duties to the best of his ability in accordance with the highest possible and ethical standards of the profession and shall comply with all general rules and regulations established by the City. (c) Employee shall not engage in any activity that is or may become a conflict of interest, prohibited contract, or which may create an incompatibility of office as defined under California law. Prior to performing any services under this Agreement, and annually thereafter, the Employee must complete disclosure forms required by law. 2. TERM (a) The term of this Agreement shall commence on July 1, 2010 and terminate on June 30, 2011. This agreement may be terminated in accordance with the provisions set forth in Paragraph 3 or terminated by the event of the death or permanent disability of Employee. (b) Employee agrees to remain in the exclusive employment of the City during the term of the Agreement. (c) City agrees to give the Employee at least 180 days notice if it does not intend to renew or extend this agreement upon its expiration.