For more information, contact:

Cassie Willis
Communications Liaison
City of Cedar Rapids
Mobile: (319) 538-1058
Office: (319) 286-5055
c.willis@cedar-rapids.org
www.Cedar-Rapids.org
Twitter: CityofCRiowa

FOR IMMEDIATE RELEASE

April 13, 2010, 3:00 p.m.

Separation Agreement Between City Council & City Manager

CEDAR RAPIDS, IA – April 13, 2010 – At tonight’s meeting the Cedar Rapids City Council will
be considering the following separation agreement with Jim Prosser:

“In consideration of the terms and provisions hereof, Jim Prosser (hereinafter “Prosser”) and the
City of Cedar Rapids, Iowa (hereinafter “the City”) state and agree as follows:

1. Prosser hereby resigns his employment with the City, effective April 13, 2010. Prosser
consents to the acceptance of his resignation by the City by passage of a motion therefore by
the Cedar Rapids City Council at its April 13, 2010 meeting.

2. Prosser and the City hereby agree Prosser shall receive as severance pay the sum of one
hundred sixty-five thousand dollars ($165,000). Prosser elects payment of said amount in one
lump sum. The City shall make payment as directed within seven (7) days hereof. In
addition, Prosser shall be allowed to continue to participate, at City’s cost, in the City’s health
insurance program for a period of one year, or until he accepts other employment and is able
to participate in that other employer’s health insurance program, whichever occurs first.

3. The City and Prosser agree and acknowledge that the terms and conditions of this
Separation Agreement, including the payment of severance benefits, constitute adequate and
lawful consideration for the terms and conditions of this Separation Agreement and in
exchange for such consideration, the City and Prosser do hereby release, acquit, and forever
discharge each other, and with respect to the City of Cedar Rapids, Iowa, and its past and
present officers, employees, agents, and personal representatives, (hereinafter Released
Parties) from any and all liability or claims of any type whatsoever including but not limited
to all claims, demands, damages of any kind, costs, and expenses, including but not limited to
attorney fees, and causes of action of every nature which either the City or Prosser may have
or ever claim to have against the other by reason of Prosser’s employment with the City, or

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the termination of his employment.

4. Prosser and the City agree that at all times following the signing of this Separation
Agreement, they shall not engage in any vilification of the other, and shall refrain from
making any false, negative, critical or disparaging statement, implied or expressed, concerning
the other. For purposes of this Separation Agreement, the persons whose statements may be
attributed to the City to not make disparaging statements shall be each member of the City
Council of the City of Cedar Rapids. The parties further agree to do nothing that would
damage the other’s reputation or good will. In addition, and without prejudice to any other
remedy at law or equity, should a court of competent jurisdiction declare that either party has
breached this covenant of mutual non-disparagement, the party who has been declared to have
been disparaged by such court shall be entitled to liquidated damages in the amount of twenty-
five thousand dollars ($25,000).

5. As further consideration for this Separation Agreement, Prosser and the City agree:
a) That this Separation Agreement is a complete and full discharge given to the
Released Parties and covers all injuries, claims, and damages, whether known or
unknown, which may hereinafter be discovered or developed arising from the
matters above referred to.

b) That this Separation Agreement and severance benefits described herein is all that
Prosser will receive for this Separation Agreement and no promise for any other or
further consideration has been made by anyone.

c) That this Separation Agreement is executed with the understanding that any and all
liability of any kind is expressly denied by Prosser and the Released Parties, and
the terms of the Separation Agreement and the payment of the compensation do
not constitute an admission of liability on the part of any person or entity.

d) That the City and Prosser are executing this Separation Agreement solely in
reliance upon their own knowledge, belief, and judgment and not upon any
representations made by the City or Prosser to each other, or others on their behalf.

e) That the City and Prosser specifically hereby release any claims either may have
against the other, whether based in contract or tort or under any common law or
any federal or state statute, including but not limited to age, gender, race and
retaliation discrimination under Chapter 216 of the Iowa Code, Title VII of the
Civil Rights Act of 1964 and any other age, gender, race, or retaliation
discrimination law or any claim or cause of action premised on or pursuant to 42
USC 1983.

6. Prosser recognizes and agrees to the continuing obligation that the City may have pursuant
to Chapter 670 Code of Iowa (2009), as amended, to defend Prosser and save him harmless
and indemnify him from any tort claim or demand, whether groundless or otherwise, arising
out of an alleged act or omission occurring within the scope of his employment or duties with
the City. In this respect, Prosser recognizes and agrees to cooperate, provide testimony and

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otherwise assist the City in any ongoing claims, grievances, and matters of like kind.

7. Nothing in this Separation Agreement is intended to affect or reduce any benefits of

employment that Prosser earned or became vested in during his employment with the City.”

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