Employment Agreement. Now, therefore, the Board and Stegmaier hereby agree as follows: Section 1: Hiring of County Administrator

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1 . ' - ' Employment Agreement THIS AGREEMENT, made and entered into this 30th day of July, 2008, by and between the BOARD OF SUPERVISORS OF THE COUNTY OF CHESTERFIELD, the governing body of a political subdivision of the Commonwealth of Virginia, and JAMES J. L. STEGMAIER, both of whom agree as follows: WHEREAS Va. Code and Chesterfield County Charter 4.1 authorize the Board to appoint and supervise a chief administrative officer for the County of Chesterfield ("County"), to be designated as the County Administrator and to serve at the pleasure of the Board; and WHEREAS the Board has determined that Stegmaier has the education, training and experience in local government management that is necessary for him to perform the tasks required of a County Administrator, as described in Va. Code and Chesterfield County Charter 4.2; and WHEREAS, 4.1 of the County Charter provides that the Board may enter into an employment agreement with the County Administrator defining terms of employment; Now, therefore, the Board and Stegmaier hereby agree as follows: Section 1: Hiring of County Administrator The Board hereby hires Stegmaier to serve as County Administrator of Chesterfield County. Stegmaier shall be responsible for performing all of the functions described in Va. Code and Chesterfield County Charter 4.2 and shall perform such other tasks as the Board may require the County Administrator to perform in accordance with the Board's authority as the governing body of Chesterfield County, Virginia. Section 2: Term The term of this Agreement shall commence on August 14th, Thereafter, Stegmaier shall serve as County Administrator for an indefinite term at the pleasure of the Board. Section 3: Compensation The Board agrees to pay Stegmaier a base salary of $218,460, adjusted for compensation paid from July 1 to July 30, 2008, from July 30, 2008 to June 30, Thereafter, the base salary of Stegmaier shall be reviewed annually in conjunction with the Board's review of his performance. The Board may adjust his salary at a rate or in an amount to be determined by the Board and may pay appropriate bonuses. The Board agrees to pay Stegmaier's salary in equal installments in the same fashion as employees of the County are paid by the County. Such salary includes a payment in lieu of an automobile allowance to compensate Stegmaier for automobile expenses related to the duties of County Administrator. The County shall bear the full cost of 0800:

2 ' any fidelity or other bonds required in order for Stegmaier to hold or maintain the office of County Administrator under any law, ordinance or policy. Section 4: Benefits a) The Board shall provide health, disability, life insurance, vacation, sick and military leave, accrued at existing rates based on years of service, and other employment benefits to Stegmaier in the same fashion as such benefits are made available to other employees of the County, provided, however, that Stegmaier shall be allowed unlimited accrual of vacation leave. The Board shall continue Stegmaier in the State of Virginia Retirement System and shall make all contributions to VRS on behalf of Stegmaier in the same manner and fashion as the County makes such payments on behalf of employees of the County. b) The Board shall pay deferred compensation into either of the County's 457 plans in the annual amount of $20,500, effective August 1, 2008 and for each succeeding calendar year. Section 5: Termination a) This Agreement is terminable at will by the Board, with or without notice and with or without cause. b) If Stegmaier's employment is terminated for cause he shall not be eligible for any additional compensation other than salary owed him at the time of termination. "Cause" is defmed as any reason that reasonably could be perceived to be or could be detrimental to the County as determined solely by the Board. c) If this Agreement is terminated by Board for a reason other than for cause, the Board will pay Stegmaier i) twelve months of his salary (less accrued annual leave) if termination occurs on or before December 31, 2008 and ii) six months of his then-current salary (less accrued annual leave) if termination occurs after December 31, 2008, and Stegmaier may elect to receive a lump sum or salary continuation. Section 6: Resignation Prior to resigning as County Administrator, Stegmaier shall give a minimum of 90 days written notice to the Chairman of the Board of Supervisors in office on the date of such resignation. Section 7: Residency Requirement Stegmaier shall maintain his residence within the boundaries of the County :

3 I Section 8: Other Terms and Conditions of Employment Except to the extent described in this Agreement, which may be modified from time to time as set forth herein, the terms of Stegmaier's employment shall be governed by the Chesterfield County Employee's Handbook and such other rules and regulations of employment which apply to employees of the County. Section 9: General Provisions A. Integration. This Agreement sets forth and establishes the entire understanding between the Board and Stegmaier relating to Stegmaier's employment. Any prior discussions or representations by or between the parties are either merged into or are rendered null and void by this Agreement. The parties by mutual written agreement may amend any provision of this Agreement during the life of the Agreement. Such amendments shall be incorporated and made a part of this Agreement. B. Binding Effect. This Agreement shall be binding on future Boards and Stegmaier as well as on the heirs, assigns, executors, personal representatives and successors in interest of Stegmaier. C. Severability. The invalidity or partial invalidity of any portion 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, by a competent court, the remaining provisions shall be deemed to be in full force and effect as if they have been executed by both parties subsequent to such holding. D. Jurisdiction. Any legal action brought as a result of this Agreement shall be brought in the Circuit Court of Chesterfield County, Virginia, and in no other venue. Given under our hands as of this 30th day of July, BOARD OF SUPERVISORS OF CHESTERFIELD COUNTY, VIRGINIA By----taa~. ~ "' - "'- _,_tv:..:::.._:~=---~-arthur S. Warren, Chairman Approved as to form: 0800:

4 First Amendment to Employment Agreement THIS AGREEMENT, made and entered into as of this 21st day of September, 2011, by and between the BOARD OF SUPERVISORS OF THE COUNTY OF CHESTERFIELD, the governing body of a political subdivision of the Commonwealth of Virginia ("Board"), and JAMES J. L. STEGMAIER ("Stegmaier"): WHEREAS Va. Code and Chesterfield County Charter 4.1 authorize the Board to appoint and supervise a chief administrative officer for the County of Chesterfield ("County"), to be designated as the County Administrator and to serve at the pleasure of the Board; and WHEREAS the Board determined that Stegmaier has the education, training and experience in local government management that is necessary for him to perform the tasks required of a County Administrator, as described in Va. Code and Chesterfield County Charter 4.2; and WHEREAS, pursuant to 4.1 of the County Charter, the Board entered into an employment agreement with Stegmaier dated July 30, 2008 ("Employment Agreement") defining the terms of his employment as County Administrator; and WHEREAS, the Board reserved the right in the Employment Agreement to adjust Stegmaier's salary in an amount determined by the Board; and WHEREAS, on September 21, 2011, the Board approved a salary increase for Stegmaier of 2% effective June 25, 2011 and also approved reimbursement to Stegmaier of certain travel expenses; and WHEREAS, the parties desire to amend the Employment Agreement to reflect the new agreement of the parties. Now, therefore, the Board and Stegmaier hereby agree as follows: 1. The Employment Agreement is hereby amended as follows: (i) Effective June 25, 2011, the Board shall pay Stegmaier a base salary of $222,829; and (ii) effective June 25, 2011, Stegmaier shall be eligible for reimbursement for mileage, tolls, parking fees and other expenses associated with business travel in accordance with applicable County policy. 2. All other terms of the Employment Agreement not inconsistent with this First Amendment shall remain in full force and effect. 0623:

5 .. ' Given under our hands as of this id!eday of ~, BOARD OF SUPERVISORS OF THE COUNTY OF CHESTERFIELD Approved as to form: By--vc-~-----=.~~---- Arthur S. Warren, Chairman County Attorney 0623 :

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