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KOK tiu P GE i5 ~ <br />property is no longer needed for mental health services or any other <br />legitimate business purpose relating to the operation of Sandhills Center, <br />the lease will terminate upon 60 days' notice by either party, and use of <br />the real property shall revert to Lee County. The lease agreement attached <br />hereto as Exhibit C shall govern the rights and obligations of the parties <br />with respect to the Sanford Mental Health Center and the house located <br />thereon. <br />6. General Liability Insurance. Lee-Harnett Authority shall maintain its liability <br />insurance coverage in the ordinary course of business through 12:00 AM on July 1, 2005. <br />Effective at 12:00 AM on July 1, 2005, Sandhills Center shall have in place liability insurance to <br />cover and include all personal property transferred to Sandhills Center in connection with this <br />Agreement. In addition, Sandhills Center shall have in effect a general liability policy which <br />shall include coverage for, inter alia, bodily injury and property damage caused by its <br />employees, including any new employees as referenced in paragraph 8 below. Effective July 1, <br />2005. Sandhills Center shall also have in place workers' compensation insurance, which shall <br />include any current employees of Lee-Harnett Authority who shall become employees of <br />Sandhills Center effective July 1, 2005, as set forth in paragraph 8 below, and any and all other <br />insurance maintained in the ordinary course of business. <br />7. Directors' and Officers' Insurance. Effective July 1, 2005, the Sandhills Area <br />Board, as reflected in Section 3 above, will be covered under Sandhills Center's Directors' and <br />Officers' insurance policy. <br />8. Emplovment of Lee-Harnett Authority Employees. It is understood and <br />agreed that Lee-Hamett Authority will terminate its employees effective at midnight on June J0, <br />2005. Sandhills Center shall, within thirty (30) days of the execution of this Agreement and the <br />passing of all necessary resolutions, notify each employee of Lee-Harnett Authority regarding <br />the prospect of employment with Sandhills Center upon the effective date of this Agreement, <br />July 1, 2005. Sandhills Center agrees to hire Lee-Harnett Authority staff in accordance with the <br />attached list of positions, designating such staff as "Employment on a Permanent Basis" or <br />"Time Limited Appointments." Continued employment of any employees hired by Sandhills <br />Center who were formerly employed by Lee-Harnett Authority is in the sole and exclusive <br />discretion of Sandhills Center, as it may deem proper and appropriate for the purposes of <br />operating the Center. However, Sandhills is under no obligation to hire any Lee-Harnett <br />Authority staff in the event the staff member, prior to the effective date of this agreement, <br />12/07/2004 10:40 A\t 4 <br />