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04-09-2019 Town Manager Employment Agreement - HeilTOWN OF AVON TOWN MANAGER EMPLOYMENT AGREEMENT THIS TOWN MANAGER EMPLOYMENT AGREEMENT (the "Agreement") is effective April 9, 2019 and is by and between Eric J. Heil, (the "Manager") and the Town of Avon, Colorado (the "Town"), a Home Rule municipality in the State of Colorado (individually, a "Party" and collectively, the "Parties"), and is made to set forth the terms and conditions of Manager's employment with the Town. NOW, THEREFORE, in consideration of the mutual promises and payments herein contained, the Parties agree to the following terms and conditions: 1.0 EMPLOYMENT. Manager is employed as Town Manager of the Town for an indefinite period as an at -will employee, subject to: the terms and conditions of this Agreement; the Town of Avon Employee Policies & Procedures, effective April 25, 2016; the Town of Avon Compensation & Benefits Programs, effective January 1, 2016; and the Avon Home Rule Charter, as each and all may be amended from time to time. 2.0 DUTIES. Manager is employed as Town Manager in a full-time capacity, with such duties and functions as are specified in the Town of Avon Home Rule Charter, as may be specified by ordinance or in the Avon Municipal Code, and as may be directed by the Town Council. 3.0 COMPENSATION. 3.1 BASE SALARY. The Town agrees to pay Manager a base annual salary ("Base Salary") of ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS ($175,000.00), which shall be paid on and from the Commencement Date. Payment of the Base Salary under this Agreement shall be made in equal installments on a biweekly basis during the term of this Agreement. The Base Salary shall be prorated for 2019 to reflect the Manager's Commencement Date, and for any other calendar year in which the Manager is employed for fewer than 12 months. 3.2 AUTOMOBILE ALLOWANCE. Manager shall receive FIVE HUNDRED DOLLARS ($500.00) per month as additional, taxable compensation in return for his use of his own, owned automobile in conducting Town business, which shall be paid on and from the Commencement Date. The Manager shall be expected to use his personal vehicle for travel to and from business meetings and on trips related to performance of Town Manager duties. The Manager shall, therefore, not be eligible for mileage reimbursement. 3.3 HOUSING ALLOWANCE. Manager shall receive FIVE HUNDRED Town of Avon Town Manager Employment Agreement April 9, 2019 Page 1 of 20 SEVENTY DOLLARS ($570.00) per month as additional, taxable compensation to defray the costs of maintaining a primary residence in Avon, Beaver Creek, or EagleVail, Colorado. This payment shall be reduced by half, to TWO HUNDRED EIGHTY-FIVE DOLLARS ($285.00) per month, if the Manager maintains a residence in Homestead, Edwards town center, Singletree, Arrowhead, or Bachelor Gulch, Colorado. No amount will be paid to the Manager in accordance with this Section 3.3 if the Manager maintains his primary residence in any community other than those listed above. 3.4 RETIREMENT. Beginning on the Commencement Date, the Town shall contribute an amount into the Town of Avon Public Employees Money Purchase Pension Plan (the "401(a) Plan") equal to that amount the Manager defers into the 401(a) Plan. As of the Commencement Date, that amount is eleven percent (11%) of the Manager's Base Salary. The Town's matching contribution shall be paid into the 401(a) Plan in biweekly installments. In addition to the 401(a) Plan, the Manager shall be eligible to participate in the Town's Section 457 Deferred Compensation Retirement Plan in accordance with the terms and conditions of that plan, and to the extent that the Town maintains that plan. 3.5 INSURANCE BENEFITS. The Town shall provide and pay that portion of the premiums for health, dental, vision, and term life insurance for Manager and his dependents that it pays on behalf of other full-time employees of the Town in accordance with Town of Avon Compensation & Benefits Programs, effective January 1, 2016, as may be amended from time to time (the "Insurance Benefits"). 3.6 PAID TIME OFF. The Manager shall be entitled to paid time off ("Paid Time Off') in accordance with Section 2.16 (a) of the Town of Avon Compensation & Benefits Programs, effective January 1, 2016, as may be amended from time to time, provided that Manager shall begin accruing Paid Time Off at the rate of an employee with five (5) years of employment with the Town, which accrual shall begin on the Commencement Date. Additionally, on Commencement Date, the Town will award the Manager eighty (80) hours of Paid Time Off, which shall be immediately available for the Manager's use. 3.7 OTHER BENEFITS. Manager shall be entitled to participate in any other benefits that are provided by the Town to other full-time, executive employees in accordance with the applicable participation requirements. 3.8 COMPENSATION ADJUSTMENT. The Compensation of the Manager may be adjusted based upon the Manager's annual performance evaluation, as set forth in Section 4 below, by the Town Council, subject to the Town Council's sole discretion. Any change in Compensation shall be effective on such date as Council may determine in its sole discretion. Compensation adjustments shall be made by motion and vote and do not require amendment of this Agreement. 3.9 RELOCATION EXPENSES. The Town shall reimburse Manager for those Town of Avon Town Manager Employment Agreement April 9, 2019 Page 2 of 20 direct moving expenses the Manager incurs prior to August 31, 2021, to move his primary residence to any of the Eagle River Valley neighborhoods identified by name in Section 3.3 above, to a maximum of four thousand dollars ($4,000.00). The Manager shall present receipts or other documentation to support all such reimbursements. The Town's reimbursement of the Manager's relocation expenses may constitute taxable income to the Manager and may be subject to withholding in accordance with applicable law. 4.0 PERFORMANCE REVIEW. The Town Council shall strive to complete the annual performance review of the Manager in March of each calendar year, unless the Town Council determines a different month during which to complete an annual performance review. The Town Council also may require a performance evaluation at any time a majority of the Council deems a review is necessary. The Town Council shall inform the Manager as to the Town Council's opinion and expectations regarding his performance as Town Manager based upon such performance criteria as the Town Council may utilize in its sole discretion. 5.0 COMMENCEMENT OF EMPLOYMENT AS TOWN MANAGER. The Effective Date of the Agreement is April 9, 2019, irrespective of the date or dates upon which the Parties execute it. Manager shall commence his duties as Town Manager on Monday, April 29, 2019, ("Commencement Date"). 6.0 FACILITIES. The Town shall furnish office facilities and assistance for Manager as the Town Council deems appropriate for the performance of Manager's duties. 7.0 LIMITATION ON EXTERNAL PROFESSIONAL ACTIVITIES. Manager shall not engage in any non -Town employment activities for compensation without the express written consent of the Town Council. It is the intent of the Parties that Manager's employment will require his full-time commitment. 7.1 Notwithstanding Section 7.0, the Manager shall be permitted to pursue his occasional efforts as a professional musician, so long as they do not interfere with the performance of his Town duties. While the Manager may accept payment for musical engagements, he may not accept payment with respect to any engagement that the Town funds, directly or indirectly, in whole or in part. 8.0 PARTICIPATION IN PROFESSIONAL ORGANIZATIONS. Participation in professional organizations and voluntary programs is encouraged, provided they are consistent with the responsibilities of the Town Manager and with the interests of the Town. The Town shall pay Manager's membership fees and reasonable costs of participation in the International City Manager's Association; the Colorado Bar Association; the American Planning Association; the Colorado Chapter of the American Planning Association; and other memberships and professional development activities the Town Council determines are consistent with his employment. The Town shall also pay those attorney registration fees and reasonable continuing legal education costs required for the Manager to maintain an active license to practice law in the State of Colorado. Town of Avon Town Manager Employment Agreement April 9, 2019 Page 3 of 20 9.0 CONFERENCE ATTENDANCE. The Town shall pay for all reasonable expenses related to Manager's attendance at: the International City Manager's Association annual conference; all Colorado Association of Ski Town monthly meetings; the Colorado Association of Ski Towns annual conference; the Colorado Municipal League annual conference; and at least one other out-of-state conference to be selected at the reasonable discretion of the Manager. Manager may propose additional job related training, education, and professional memberships and participation, which shall be subject to review and approval by the Town Council. Additionally, the Manager must attend, at Town's expense, a leadership/management professional development course by April 30, 2020. The coursework shall be selected by the Manager and shall require the Town Council's prior approval. 10.0 TERMINATION WITH SEVERANCE. This Agreement may be terminated, and the Manager shall receive the below -defined Severance, in the event of the following: 10.1 The Town may terminate Manager's employment without Cause ("Cause," as defined below in Section 12), at any time, upon the vote of the majority of the Town Council, and nothing contained in this Agreement shall restrict any Town Council member from making a motion or voting to terminate Manager's employment without Cause at any regular or special meeting. 10.2 The Manager may terminate his employment by resigning the position of Town Manager for Good Reason. As used in this provision, "Good Reason" shall mean: 10.2.1 Upon receiving the recommendation that he resign from the Town Council, as represented by a majority of its members; or 10.2.2 Upon the Town's breach of any material provision of Section 3.0 that remains uncured for forty-five (45) consecutive days after Manager provides the Town Council written notice of the alleged breach and demand for cure. 11.0 SEVERANCE. 11.1 The Town shall provide the Manager a severance payment ("Severance," as defined below), if Manager's employment is terminated by the Town without Cause, or by the Manager for Good Reason, so long as the Manager executes the Severance, Waiver, and Release of Claims Agreement described below. 11.2 The Town shall not be obligated to pay Severance if Manager's employment is terminated for Cause, defined below in Section 12, or in the case that Manager resigns voluntarily without Good Reason, as set forth in Section 13. 11.3 The Severance payment shall equal four (4) months' Base Salary, at the Manager's Town of Avon Town Manager Employment Agreement April 9, 2019 Page 4 of 20 then -current rate of pay, and the cost of Insurance Benefits as described in Section 3.5, above, for the same four-month period. 11.3.1 Severance payments shall be subject to and conditioned upon the Manager's execution of a Severance, Waiver, and Release of Claims Agreement, in a form substantially similar to that attached to this Agreement as Exhibit One. 11.3.2 The Severance payment shall be paid in a lump sum within twenty (20) days after the expiration of all applicable consideration and revocation periods provided for in the Severance, Waiver, and Release of Claims Agreement. 11.3.3 The Severance payment shall be reduced by all taxes and other withholdings required by law, and by the outstanding balance of any amount due and owing from the Manager to the Town. 11.3.4 Severance shall include reimbursement to Manager for his payment of premiums necessary to maintain Insurance Benefits through COBRA or other applicable laws or regulations providing continuation of coverage for four (4) months following the termination of his employment by the Town without Cause, or by the Manager for Good Reason. 12.0 TERMINATION FOR CAUSE WITHOUT SEVERANCE. This agreement may be terminated for Cause, at any time, upon the vote of the majority of the Town Council. 12.1 For the purpose of this Agreement, "Cause" shall consist of: 12.1.1 Conduct by Manager which is fraudulent or dishonest, including the Manager's intentional failure to provide known information to the Town Council that is material to Town Council actions; or 12.1.2 Manager's conduct that, if proven, would constitute a criminal offense evidencing poor character or judgment, or moral turpitude, where Town Council finds that there is reason to believe that such conduct occurred; or 12.1.3 Negligence, malfeasance, misfeasance, or nonfeasance in office; intentional or negligent violation of state or federal civil rights; or sexual harassment; or 12.1.4 Excessive use of alcohol or drugs, which renders Manager unfit or unable to perform his duties, as determined by the Town Council. 12.2 If the Town Council intends to consider termination of Manager's employment for Cause, the Town Council, at any time, upon the vote of the majority of such Council, shall give Manager written notification stating the Cause for termination ("Notice of Town of Avon Town Manager Employment Agreement April 9, 2019 Page 5 of 20 Termination for Cause"). If the Manager desires to question whether the matters stated in the Notice of Termination for Cause are accurate, or whether they constitute Cause, Manager shall have the right to do so on written notice ("Notice of Appeal") to the Town Council given within ten (10) days after his receipt of the Notice of Termination for Cause. Upon receiving the Manager's Notice of Appeal, the Town Council shall provide the Manager a hearing before the Council within 15 business days. Such hearing shall be conducted in accordance with rules of procedure reasonably established by the Town Council. The Town Council's determination, which shall be delivered to the Manager within five (5) business days of the Manager's appeal hearing, shall be final and shall not be subject to further review. 12.3 If the Manager resigns upon notice from the Town Council that it is considering terminating the Manager's employment for Cause, Town Council, in its sole discretion, may elect to treat such resignation as a termination for Good Reason, with Severance, in accordance with Section 10.2, above, or may elect to treat such resignation as a resignation without Good Reason in accordance with Section 13.0 below, in which case such resignation shall be effective immediately and Manager shall not be entitled to Severance. 13.0 RESIGNATION. As an at -will employee, if Manager voluntarily resigns Manager's position with the Town in a manner not contemplated by Section 10, Manager shall strive to provide a minimum of forty-five (45) days written notice, unless the Parties otherwise agree. Upon the effective date of resignation, Manager shall be entitled to no further compensation or benefits under this Agreement or otherwise, but will be compensated for accrued, but unused, Paid Time Off in accordance with the Town of Avon Compensation and Benefits Programs, effective January 1, 2016, as may be amended from time to time. 14.0 ARBITRATION. Whenever a dispute arises with respect to this Agreement, or as to any aspect of the Manager's employment or the termination thereof, that the Parties are unable to resolve through negotiation or other informal process, then, upon written demand of either Party, such dispute shall be submitted to binding arbitration conducted by the Judicial Arbiter Group, Inc. of Denver, Colorado, or its successor, or by such other arbitrator as the Parties may mutually select, pursuant to the rules and procedures determined by agreement of the Parties or, failing such agreement, by the arbitrator. The arbitration hearing shall be held within sixty (60) days of appointment of the arbitrator unless otherwise agreed by both Parties. Furthermore, each Party shall be entitled to one deposition. The Colorado Rules of Evidence shall not apply unless otherwise agreed by the Parties or determined by the arbitrator. Further, the arbitrator shall have discretion to determine whether any proffered evidence is sufficiently reliable and probative to be admitted. The determination of the arbitrator shall be final and absolute. The award of the arbitrator may be entered as a judgment in any court in the State of Colorado or elsewhere. If the Parties are unable to mutually agree on the selection of an arbitrator, then each Party shall select an arbitrator and the two arbitrators shall select a third arbitrator who shall make the determination, render final decisions, and issue an award. The Town shall bear the costs of any arbitration proceeding, however the Town and the Manager shall each bear their own attorney's fees. Town of Avon Town Manager Employment Agreement April 9, 2019 Page 6 of 20 The Parties intend this arbitration agreement to be a full and complete waiver of their rights to seek redress in any dispute between them related to the Manager's Town employment from a court or before a jury, 15.0 INDEMNIFICATION. The Town shall defend, save harmless, and indemnify Manager against any and all losses, damages, judgments, interest, settlements, fines, court costs, and other liabilities incurred by, imposed upon, or suffered by Manager in connection with or resulting from any claim, action, suit, or proceeding, actual or threatened, arising out of an alleged act or omission in the performance of Manager's duties as Town Manager or resulting from the Manager's exercise of judgment or discretion in connection with his proper performance of duties or responsibilities on behalf of the Town, except to the extent the act, omission, or exercise involves the Manager's reckless, willful, or wanton conduct; intentional misconduct; or, an act, omission or exercise that meets the definition of Cause. Manager may request the Town to provide independent legal representation acceptable to Manager at the Town's reasonable expense and the Town shall not unreasonably withhold approval. Legal representation provided by the Town for Manager shall extend until a final determination of the legal action including any appeals brought by either party. Any settlement of any claim must be made with prior approval of the Town in order for indemnification as provided in this Section to be available. 16.0 NOTICES. All written notifications contemplated in this Agreement shall be sent to the following addresses via U.S. Mail or nationally recognized overnight courier, provided that the Manager may amend the address for notification by providing written notice of such address change: If to the Town: If to Manager: Mayor Town of Avon 100 Mikaela Way P.O. Box 975 Avon, CO 81620 Eric J. Heil Home Address: With Copy to: Town Attorney 100 Mikaela Way P.O. Box 975 Avon, CO 81620 17.0 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement of the Parties as to the subject matter hereof and may not be changed orally, but only by written agreement signed by both Parties. 18.0 BINDING EFFECT. The Agreement shall be binding upon the Town and Manager and, as applicable, upon their heirs, personal representatives, successors, and authorized assigns. Town of Avon Town Manager Employment Agreement April 9, 2019 Page 7 of 20 19.0 ASSIGNMENT. The rights and obligations of this Agreement are personal in nature and shall not be assigned or otherwise conveyed by a Party without the prior written consent of the other Party. 20.0 NO THIRD PARTY BENEFICIARY. It is expressly understood and agreed that enforcement of the terms and conditions of this Agreement, and all rights of action relating to such enforcement, shall be strictly reserved to the Town and Manager, and nothing contained in this Agreement shall give or allow any such claim or right of action by any third person to this Agreement. It is the expressed intention of the Town and Manager that any person other than the Town or Manager receiving services or benefits under this Agreement shall be deemed to be an incidental beneficiary only. 21.0 SEVERABILITY. The validity or partial invalidity of any provision of this Agreement will not affect the validity of any other provision. In the event that any provision of this Agreement is held to be invalid, the Parties shall negotiate and diligently seek to reach agreement regarding the intent of the Parties concerning any such invalid provision. Accordingly, if any provision of this Agreement is held to be invalid, the remaining provisions shall be deemed to remain in full force and effect. 22.0 INDEPENDENT LEGAL ADVICE. The Manager acknowledges that the Town has advised him to obtain independent legal advice with respect to entering into this Agreement, and that he has obtained such independent legal advice to the extent he deemed appropriate. Manager further acknowledges that he is entering into this Agreement with full knowledge of the contents hereof, of the Manager's own free will, and with full capacity and authority to do so. 23.0 ARTICLE X, SECTION 20/TABOR. The Parties acknowledge that the Town is subject to Article X, § 20 of the Colorado Constitution ("TABOR"). The Parties do not intend to violate the terms and requirements of TABOR by the execution of this Agreement. It is understood and agreed that this Agreement does not create a multi -fiscal year direct or indirect debt or obligation within the meaning of TABOR and, therefore, notwithstanding anything in this Agreement to the contrary, all payment obligations of the Town are expressly dependent and conditioned upon the continuing availability of funds beyond the term of the Town's current fiscal period ending upon the next succeeding December 31. Financial obligations of the Town payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted, and otherwise made available in accordance with the rules, regulations, and resolutions of the Town of Avon, and other applicable law. Upon the Town's failure to appropriate such funds, this Agreement shall be deemed terminated and the Manager shall be deemed terminated without Cause, unless such action is the result of a prior termination for Cause pursuant to Section 12. 24.0 COUNTERPART EXECUTION. This Agreement may be executed by the Parties in counterparts, which, together, shall form a single document. Town of Avon Town Manager Employment Agreement April 9, 2019 Page 8 of 20 Signature Pages Follow Town of Avon Town Manager Employment Agreement April 9, 2019 Page 9 of 20 The Town of Avon, evidenced by the signature of its authorized representative, has read and considered this Town Manager Employment Agreement, understands its terms and conditions, and hereby agrees to employ Eric J. Heil as Avon Town Manager on the terms and conditions set forth herein. TOWN OF AVON, COLORADO Sarah Smith, Mayor ATTEST: 0916 Date Brenda Torres, Acting Town Clerk Date APPROVED AS TO FORM: Kevin C. Paul Special Counsel to the Town of Avon Town of Avon Town Manager Employment Agreement April 9, 2019 Page 10 of 20 The Town of Avon, evidenced by the signature of its authorized representative, has read and considered this Town Manager Employment Agreement, understands its terms and conditions, and hereby agrees to employ Eric I Heil as Avon Town Manager on the terms and conditions set forth herein. TOWN OF AVON, COLORADO no Sarah Smith, Mayor Date ATTEST: i' Brenda Torres, Acting Town Clerk Date Ill 1103 IM :I UV I Kevin C. Paul Special Counsel to the Town of Avon Town of Avon Town Manager Employment Agreement April 9, 2019 Page 10 of 20 Eric J. Heil, as evidenced by his signature below, has read and considered this Town Manager Employment Agreement, understands its terms and conditions, and hereby agrees to serve as Avon Town Manager on the terms and conditions set forth herein. Town of Avon Town Manager Employment Agreement April 9, 2019 Page 11 of 20 TOWN OF AVON TOWN MANAGER EMPLOYMENT AGREEMENT EXHIBIT ONE: Form of Severance, Waiver, and Release of Claims Agreement Town of Avon Town Manager Employment Agreement April 9, 2019 Page 12 of 20 TOWN of AVON, COLORADO SEVERANCE, WAIVER & RELEASE OF CLAIMS AGREEMENT THIS DOCUMENT IS INTENDED AS AN EXAMPLE ONLY AND DOES NOT CONSTITUTE A CURRENT OFFER OF SEVERANCE FROM THE TOWN OF AVON TO THE TOWN MANAGER. This Severance, Waiver, and Release of Claims Agreement (the "Agreement") is entered into by and between the undersigned Town Manager, Eric J. Heil ("You") and the Town of Avon, Colorado, and its respective elected officials, employees, agents, representatives, attorneys, and insurers (collectively the "Town"). You and the Town will be referred to collectively as the "Parties." 1. Your employment with the Town will conclude on 20 (the "Separation Date"), upon which You execute this Agreement. irrespective of the date 2. By your signature below, You acknowledge and agree that, as of the Separation Date, You were paid all wages or salary, all accrued unused vacation time, characterized by the Town as Paid Time Off, and any other compensation due and owing to You through the Separation Date, less the applicable tax or other deductions required by law, or deductions authorized by You in writing. 3. By your signature below, You agree that You have returned or, within seven (7) days of the Separation Date, will return all the Town property, including all copies of Town documents, which You have had in Your possession, custody, or control at any time through the end of Your employment. Town property includes, but is not limited to, Town files, notes, records, financial information, computer hardware, cellular phones, credit cards, entry cards, identification badges, keys, and any tangible property or materials of any kind that contain any Town proprietary or confidential information. You further agree to return all relevant proprietary information related to the Town that is currently loaded on any hard drive, flash drive, lap top, compact disc, or other electronic medium in your control and You shall not maintain copies of such information after returning it to the Town. 4. If You execute this Agreement, and do not revoke it, the Town agrees to pay the "Separation Benefit," consisting of: (a) A single, lump sum payment in the amount of Dollars ($ Town of Avon Town Manager Employment Agreement April 9, 2019 Page 13 of 20 ), which is equivalent to four (4) months' compensation at your regular rate of pay, less all applicable deductions and local, state, and federal taxes. If You execute this Agreement and do not revoke your execution, this amount will be paid to You within twenty (20) days after the expiration of the revocation period provided for in this Agreement. (b) Reimbursement of amounts You pay to continue your Insurance Benefits for a period of four (4) months following the Separation Date. The Town will issue this reimbursement to You within thirty (30) days of receiving reasonable evidence that You paid the required monthly premium. 5. Should You make a claim for unemployment insurance benefits, the Town will not contest or oppose any award of such benefits, but will accurately respond to inquiries submitted to the Town by the Colorado Department of Labor and Employment. 6. Other than the continuation of health insurance benefits under COBRA, as of the Separation Date, You shall not be eligible to participate in any of the Town's health benefit plans, including, but not limited to, any plans or programs of medical, dental, or vision insurance. Likewise, as of your Separation Date, You shall not be eligible to participate in the Town's other employee benefit plans. Nothing in this Section shall prevent You from participating in a COBRA continuation coverage program or any similar state medical and dental insurance continuation coverage program ("COBRA continuation coverage'. 7. YOU SHALL BE RESPONSIBLE FOR TIMELY ELECTION OF COBRA CONTINUATION COVERAGE AND FOR ALL COBRA CONTINUATION COVERAGE PAYMENTS. YOUR FAILURE TO TIMELY ELECT COBRA CONTINUATION COVERAGE OR TO TIMELY REMIT COBRA CONTINUATION COVERAGE PREMIUMS SHALL CAUSE AN IMMEDIATE LOSS OF YOUR COBRA CONTINUATION COVERAGE WITHOUT FURTHER NOTICE. 8. You agree that You desire to receive the Separation Benefit, and that the amount offered to You is above and beyond that to which You would otherwise be entitled. You further acknowledge that: your decision to release the Town is entirely voluntary; You have not been pressured into accepting the Separation Benefit; and You have enough information about the Separation Benefit to decide whether to execute this Agreement. If, for any reason, You believe that your acceptance of the Separation Benefit is not entirely voluntary, or if You believe that You do not have enough information, then You should not execute this Agreement. 9. You acknowledge that You have read and that You understand this Agreement. Town of Avon. Town Manager Employment Agreement April 9, 2019 Page 14 of 20 10. You agree that, to the maximum extent permitted by applicable law, by executing this Agreement, You hereby covenant not to institute any legal or administrative proceeding against the Town and are fully, finally and forever releasing any and all claims that You have or may have against the Town, to the maximum extent permitted by law, as follows: (a) You agree that by executing this Agreement, You intend to release and forever discharge, and in fact release and forever discharge, the Town and its past and present trustees, officers, agents, insurers, attorneys, assigns, and other representatives of any kind (collectively the "Released Parties") from any and all claims, demands, rights, liabilities, and causes of action of any kind or nature, known or unknown, arising prior to or through the date that You execute this Agreement; and (b) You agree that your release includes, but is not limited to any and all claims, demands, rights, liabilities and causes of action arising or having arisen out of or in connection with your employment or termination of employment with the Town; and (c) With the exception of claims for the Separation Benefit payable to You and claims for any unemployment benefits to which You may be entitled, by your signature below, You intend to and do release and waive any claim or right to further compensation, benefits, damages, penalties, attorneys' fees, costs, or expenses of any kind from the Town; and (d) This release specifically includes, but is not limited to, a release of any and all claims pursuant to: (i) state or federal wage payment laws; (ii) the Colorado Anti -Discrimination Act; (iii) Title VII of the Civil Rights Act of 1964; (iv) the Rehabilitation Act of 1973; (v) the Reconstruction Era Civil Rights Acts, 42 U.S.C. §§ 1981-1988; (vi) the Civil Rights Act of 1991; (vii) the Americans with Disabilities Act & the Americans with Disabilities Amendments Act of 2008; Town of Avon Town Manager Employment Agreement April 9, 2019 Page 15 of 20 (viii) Executive Order 11246; (ix) the Family Medical Leave Act of 1993 and any other state or federal family and/or medical leave acts; Act; (x) the Consolidated Omnibus Budget Reconciliation Act of 1985; (A) the Uniformed Services Employment and Reemployment Rights (xii) the Genetic Information Nondiscrimination Act of 2008; (xiii) the Employee Retirement Income Security Act of 1974; and (xiv) any other federal, state or local laws or regulations of any kind, whether statutory or decisional. This release also includes, but is not limited to, a release of any claims for wrongful termination, personal injury, breach of contract, defamation, misrepresentation, violation of public policy or invasion of privacy, and tortious interference with contract. This release covers claims that You know about as well as those You may not know about; and (e) To the extent allowed by applicable statutory and regulatory law, the release contained in the preceding paragraph includes a waiver of rights and claims which You may have arising under the federal Age Discrimination in Employment Act of 1967 (Title 29, United States Code, 621 et seq.) (the-ADEA"). Pursuant to the Older Workers Benefit Protection Act (Public Law 101-433; 1990 S. 1511), You acknowledge that this release is intended to apply to, and You expressly agree that it shall be effective as a waiver of, rights and claims arising under the ADEA; and (f) This release does not include any claims that cannot be released or waived by law. Nothing in this Agreement is intended to limit, restrict or interfere with your right to engage in any protected activity under the National Labor Relations Act. Further, by executing this Agreement, You do not waive rights and claims that may arise subsequent to the execution of this Agreement. Execution of this Agreement does not affect your ability to participate in an investigation or proceeding conducted by the Equal Employment Opportunity Commission, the Colorado Civil Rights Division, or a comparable local agency. However, notwithstanding the foregoing, You agree to waive your right to recover monetary damages in any amount awarded in any charge, complaint, or lawsuit filed by You or by anyone else on your behalf; and Town of Avon Town Manager Employment Agreement April 9, 2019 Page 16 of 20 (g) You agree that this Agreement is intended to be interpreted in the broadest possible manner in favor of the Town, to include all actual or potential legal claims that You may have against the Town, except as specifically provided otherwise in this Agreement; and (h) You further agree that You have not experienced any illness, injury, or disability compensable or recoverable under the worker's compensation laws of the State of Colorado that You have not reported to the Town and You agree that You will not file a worker's compensation claim asserting the existence of any such illness, injury, or disability; and (i) You agree that You have been and are hereby advised by The Town to consult with an attorney prior to executing this Agreement. 11. You agree that the Separation Benefit that You are accepting by signing this Agreement has value to you. You agree that You would not be entitled to the Separation Benefit without signing this Agreement. You acknowledge that You will receive the Separation Benefit in exchange for the benefit You are providing to the Town and the Released Parties by signing this Agreement. You also acknowledge and agree that the Town will withhold from the Separation Benefit all applicable deductions and federal, state and local taxes. 12. You agree that the Separation Benefit is the only benefit You are to receive by signing this Agreement, and that in signing this Agreement You did not rely on any information, oral or written, from anyone, including your supervisor, other than the information contained in this Agreement. 13. You represent that You have not previously assigned or transferred any of the legal rights and claims that You have waived by signing this Agreement. You agree that this Agreement also binds all persons who might assert a legal right or claim on your behalf, such as your heirs, personal representatives, and assigns. 14. You agree not to disparage the Town, its trustees, officers, employees, agents, or reputation. 15. This Agreement may be executed in multiple counterparts, each of which shall be an original, but all of which shall be deemed to constitute one instrument. 16. You agree that: (a) this Agreement constitutes the entire agreement between You and the Town regarding its subject matter, without regard to any other oral or written information that You may have received about this Agreement; (b) if any part Town of Avon Town Manager Employment Agreement April 9, 2019 Page 17 of 20 of this Agreement is declared to be unenforceable, all other provisions of this Agreement shall remain enforceable; and (c) this Agreement shall be governed by federal law and by the laws of the State of Colorado, irrespective of the choice of law rules of any jurisdiction. 17. You also agree that to the extent You are bound by a proprietary information agreement or confidentiality agreement, those agreements are not released hereby. 18. You have up to twenty-one (21) days after You receive this Agreement to consider whether to execute this Agreement (the 'Deliberation Period'. During the Deliberation Period, You should consult with an attorney of your choosing and consider whether You wish to sign this Agreement. You agree that, after You have signed and delivered this Agreement to the Town, this Agreement will not be effective or enforceable until the end of a seven (7) day revocation period beginning the day that You deliver this Agreement to the Town (the "Revocation Period'. You understand that You will not receive the Separation Benefit as applicable until the Revocation Period has expired. During the Revocation Period, You may revoke this Agreement without condition and in your sole judgment, but You may do so only by delivering a written statement of revocation to the Town. If the Town does not receive a written revocation notice by the end of the Revocation Period, this Agreement will become legally enforceable and You may not thereafter revoke this Agreement. Remainder of page intentionally blanksignature page follows Town of Avon Town Manager Employment Agreement April 9, 2019 Page 18 of 20 By signing below You: (a) acknowledge that You have read and understand this Agreement; (b) understand that it is a legally binding document that may affect your legal rights; and (c) have been advised to consult a lawyer of your choosing before signing this Agreement and have had an opportunity to do so to the extent you deem appropriate. ERIC J. HEIL Signature: Date: Town of Avon Town Manager Employment Agreement April 9, 2019 Page 19 of 20 The Town of Avon, evidenced by the signature of its authorized representative, has read and considered this Town Manager Severance, Waiver, and Release of Claims Agreement, understands its terms and conditions, and hereby agrees to these terms and conditions with respect to the departure from employment of Eric J. Heil as Avon Town Manager on the terms and conditions set forth herein. TOWN OF AVON, COLORADO Y: ATTEST: Mayor Town Clerk Town of Avon Town Manager Employment Agreement April 9, 2019 Page 20 of 20 Date Date r,