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Charles H. Ramsey employment agreement
April 21, 1998

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EMPLOYMENT AGREEMENT

This Employment Agreement (the "Agreement") is entered into as of April 20, 1998, by and between Charles H. Ramsey ("Mr .Ramsey") and the District of Columbia Government ("District") with the approval of the District of Columbia Financial Responsibility and Management Assistance Authority (the "Authority") (collectively referred to as the "Parties") .This agreement is subject to the confirmation of Mr. Ramsey by the Council of the District of Columbia which is anticipated to occur on April 21, 1998. The Parties agree as follows:

I. EMPLOYMENT

The District agrees to employ Mr. Ramsey as the Chief of the District of Columbia Metropolitan Police Department ("MPD") .

II. DUTIES

A. As Chief, Mr. Ramsey shall serve as the Chief Administrative Officer of the MPD and shall perform all duties as prescribed by the District of Columbia Code and other applicable law. Mr. Ramsey shall report directly to the Authority through the Chair or a designated Member of the Authority, or through other designated party or parties. Mr. Ramsey shall be charged with the effective and impartial enforcement of all District laws and regulations for the protection of all citizens who live or work in the District or who visit the city.

B. Mr. Ramsey shall be responsible for planning, organizing, directing, staffing, and coordinating police operations, including the implementation of any District of Columbia Management Reform plans or operational models developed for the MPD. Mr. Ramsey shall be responsible for reporting the operational performance of the MPD and shall assist in the preparation of the budget. Mr. Ramsey shall formulate MPD General Orders and other rules and procedures in cooperation with appropriate District agencies.

C. During the term of this Agreement, Mr. Ramsey shall have the authority to exercise the duties and responsibilities of the Chief of Police as delineated in the Resolution, Order, and Recommendation Concerning the Metropolitan Police Department issued by the Authority on February 26, 1997 and Mayor's Orders 97-43 and 97-44 issued on February 26, 1997.

D. Mr. Ramsey shall devote his entire time and effort to the discharge of his official duty and shall not engage in any outside employment whether on a paid or unpaid basis.

E. During the term of this Agreement, Mr. Ramsey shall have an annual comprehensive physical examination by a licensed physical approved by the Authority or its designee. The District shall pay the cost of such examination. Any resulting medical information about Mr. Ramsey shall remain confidential and not be subject to disclosure, except as may be required by law. A report of the examination shall be given directly to the Authority or its designee.

III. OTHER TERMS AND CONDITIONS OF EMPLOYMENT

The Authority shall fix any other terms and conditions of employment as it may determine to be desirable or necessary from time to time, relating to the performance of Mr. Ramsey, provided such terms and conditions are not inconsistent with the terms and conditions of this Agreement.

IV. TERM

The term of this Agreement shall be for a period of five (5) years beginning April 20, 1998. Any written notice to end this Agreement at the termination date must be given to Mr. Ramsey by the Authority or its designee at least ninety (90) days prior to the end of the term of this Agreement.

V. COMPENSATION

A. Base Salary

Mr. Ramsey's base salary shall be $150,000 per year. Mr. Ramsey's base salary shall be reviewed by the Chief of the Authority, a designated Member of the Authority, or other Authority designee on an annual basis and will be subject to increases based on his job performance. Mr. Ramsey's job performance shall be evaluated pursuant to mutually agreed upon job performance goals and objectives established at the beginning of each fiscal year. The District shall pay the base salary in equal bi-weekly installments, subject to such payroll and withholding deductions as may be required by law, and other deductions required under this Agreement.

B. Relocation and Transitional Housing Allowance

The District shall make a lump sum payment of $12,000 to Mr. Ramsey for transitional expenses no later than May 1, 1998, including any costs of moving and temporary housing in Washington, D.C.

C. Retirement Benefits

(i) The Authority agrees to contract with ICMA Retirement Corporation or similar organization for a retirement plan for Mr. Ramsey to provide a defined contribution of ten percent (10%) of his base annual salary.

(ii) In the alternative, Mr. Ramsey may elect to continue to participate in the Chicago Police Pension retirement program at the level of captain. If Mr. Ramsey elects this alternative, the District will contribute to the Chicago Police Pension system the same amount that the City of Chicago would have contributed for Mr. Ramsey as if he had been serving at the rank of captain. In Fiscal Year 1998, this contribution will be approximately $15,900 on an annual basis. Mr. Ramsey shall be responsible for ensuring that the Chicago Police Pension Board advises the Authority as to the amount of the District's contribution. In no event will the District's contribution exceed $18,000 in any calendar year. Said contribution shall continue until Mr. Ramsey reaches the maximum benefit allowable under the Chicago Police Pension program in the year 2001. Mr. Ramsey shall be responsible for advising the Authority or its successor that he has achieved the maximum benefit. At that time, the District will make an annual contribution to any retirement program identified by Mr. Ramsey in the same annual amount as had been contributed on Mr. Ramsey's behalf to the Chicago Police Pension Program.

(iii) In addition, if Mr. Ramsey elects the alternative outlined in paragraph C(ii) above, the District will establish a retirement program with ICMA or other similar organization into which Mr. Ramsey may contribute.

D. Universal Leave

Mr. Ramsey shall receive 26 days paid leave per year, which may be taken at any time after the effective date of the Agreement. Mr. Ramsey shall not be charged leave for any absence which is less than 8 hours. Mr. Ramsey, with the approval of the Authority, may carry over five (5) days of unused leave. In the event that during a leave year, Mr. Ramsey has been denied the use of his leave by the Authority, its designee, or successor and he is unable to reschedule that leave in that leave year, Mr. Ramsey, upon notice to the Authority, its designee, or successor, may credit that portion of his unused leave to the next leave year. Upon termination, any leave remaining to Mr. Ramsey's credit will be paid to Mr. Ramsey at his rate of pay at the time of separation.

E. Bonus Eligibility

After one year of employment, Mr. Ramsey shall be eligible to receive an annual bonus. The bonus eligibility shall be determined by the Authority after evaluating Mr. Ramsey's performance pursuant to mutually agreeable job performance objectives and goals established before the beginning of each fiscal year. The Authority shall determine Mr. Ramsey's eligibility for bonus annually at the same time that it reviews his base salary.

F. Lost Annual Leave

Mr. Ramsey shall receive by May 1, 1998, a lump sum payment of $7,824.72, reflecting leave benefits that he will forego by leaving his present position.

G. Other Benefits

Mr. Ramsey shall be eligible to participate in other employee benefit programs generally available to District executives and employees as authorized by the District of Columbia Code, including disability compensation and health and life insurance programs. Within the confines of its existing health programs, the District will arrange for a preferred provided program for Mr. Ramsey's dependents in Chicago.

VI. TERMINATION

A. Termination for Cause

The Authority shall have the right to terminate Mr. Ramsey for cause if he (i) violates any material provision of this Agreement and does not cure said breach after receiving fifteen (15) days written notice thereof, (ii) commits acts of fraud or dishonesty, (iii) is convicted of any crime other than minor traffic offenses, or (iv) commits any act which would result in the termination of a uniform[ed] member of the MPD or other District executive or employee. If Mr. Ramsey is terminated for cause, he shall be entitled to compensation payable under this Agreement through the last date of his actual employment. Upon such payment of all obligations under this Agreement that are then outstanding, this Agreement shall terminate. Notice of such termination must be given to Mr. Ramsey in writing, specifying the reasons for such Termination, Mr. Ramsey shall be entitled to a hearing before the Authority in executive session to discuss the reason for termination. Termination for cause requires a consensus of the majority of the members of the Authority.

B. Termination Without Cause

(i) Notwithstanding any other provision of this Agreement, the Authority shall have the right to discontinue the services of Mr. Ramsey. Notice of such termination must be given to Mr. Ramsey in writing by the Chair of the Authority, a designated Member of the Authority, other designee of the Authority, or its successor.

(ii) In the event that within two (2) years of the date of this Agreement, Mr. Ramsey is terminated for any reason other than those described in the paragraph above, Mr. Ramsey shall be entitled to receive a lump sum of $150,000 as severance pay, within thirty (3) days of termination, and all other benefits under this Agreement or other benefits equivalent to those under this Agreement. If Mr. Ramsey so elects, health and life insurance programs, including dependent coverage shall continue for 12 months or until Mr. Ramsey obtains other employment, whichever occurs first.

(iii) In the event that Mr. Ramsey is terminated for any reason other than those described in the paragraph A above, after two year[s] of the date of this contract, Mr. Ramsey shall be entitled to receive a lump sum payment of $75,000 as severance pay, within thirty (30) days of termination, and all other benefits under this Agreement or other benefits equivalent to those under this Agreement. If Mr. Ramsey so elects, health and life insurance programs, including dependent coverage shall continue for 6 months or until Mr. Ramsey obtains other employment, whichever occurs first.

VII. RESIGNATION

If Mr. Ramsey resigns prior to the end of the term of this Agreement, he must give sixty (60) days written notice to the Authority, its designee, or successor.

VIII. PROFESSIONAL DEVELOPMENT

The District will pay for dues, travel and subsistence expenses of Mr. Ramsey for conferences, short courses, institutes, and seminars that are necessary for both Mr. Ramsey's professional development and for the good of the District. The District also encourages Mr. Ramsey's participation in professional organizations.

IX. MERGER CLAUSE

This Agreement contains the entire agreement between the Parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written. X. AMENDMENTS

This Agreement may be amended by the mutual consent of both Parties. Any amendment must be in writing and must be executed. A copy shall be attached to this Agreement.

XI. WAIVER

Any waiver of any provision of the Agreement shall not be deemed to be a waiver of any other or of a subsequent breach, and shall not be construed to be a modification of the terms of the Agreement.

XII. SEVERABILITY CLAUSE

If a court of competent jurisdiction shall adjudge any clause, sentence, subparagraph or section of this Agreement to be invalid, such judgment or decree shall not affect, impair, invalidate or nullify the remainder of this Agreement.

THE ABOVE TERMS AND CONDITIONS ARE HEREBY ACCEPTED TO BY THE PARTIES.

Andrew F. Brimmer
Chairman
District of Columbia Financial Responsibility and Management Assistance Authority

Marion Barry, Jr.
Mayor
District of Columbia

Charles H. Ramsey

21 Apr 98

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