SUPERINTENDENT EMPLOYMENT CONTRACT

Pursuant to Minnesota Statutes section 123B.143, the School Board of Independent School
District No. 535 (“District” or “School Board”) enters into this employment contract
(“Contract”) with Kent Pekel, Ed.D. (“Pekel”). In consideration of the mutual promises
contained in this Contract and other valuable consideration, the sufficiency of which is
acknowledged, the District and Pekel agree as follows:

ARTICLE I
DURATION AND TERMINATION

Section 1: Duration. This Contract is for a term of three years beginning on July 1, 2022, and
ending on June 30, 2025. During the stated term, this Contract will remain in full force and
effect unless: (a) it is modified by mutual written consent of the School Board and Pekel; (b) the
School Board discharges Pekel in accordance with this Contract; or (c) Pekel terminates the
Contract by providing one hundred and twenty days advance notice, as specified below. This
Contract is fully contingent upon Pekel fulfilling the terms of his 2021-2022 contract with the
District.

Section 2: Expiration. This Contract will automatically expire on June 30, 2025. When this
Contract expires, neither party will have any further claim against the other, and the District’s
employment of Pekel will automatically end, unless the District and Pekel enter into a
subsequent, written employment contract in accordance with Minnesota Statutes section
123B.143, or the governing law in effect at that time. Section 123B.143 states: “A board must
not, by action or inaction, extend the duration of an existing employment contract. Beginning
365 days prior to the expiration date of an existing employment contract, a board may negotiate
and enter into a subsequent employment contract to take effect upon the expiration of the
existing contract.”

Section 3: Termination During the Term. During the term of this Contract, the District may
immediately discharge Pekel, and thereby terminate this Contract, based on any of the grounds
stated in Minnesota Statutes section 122A.40, subdivisions 9 or 13. If the School Board votes to
discharge Pekel from employment during the term of this Contract, the School Board must give
Pekel written notice of the grounds for discharge. Pekel is entitled to a hearing before an
arbitrator to challenge whether the asserted grounds for discharge exist. To exercise this right,
Pekel or his representative must mail, electronically mail, or hand-deliver a written request for
arbitration to the School Board Chair within ten (10) calendar days after receiving written notice
of the grounds for discharge. If Pekel makes a timely request for a hearing, the parties may
attempt to mutually agree on an arbitrator. If the parties do not mutually agree on an arbitrator
within five (5) calendar days, either party may petition the Minnesota Bureau of Mediation
Services (“BMS”) for a list of five (5) arbitrators. Within ten (10) calendar days after receiving
the list, the parties (or their representatives) will select an arbitrator from the list by using an
alternating striking process. The arbitrator must conduct a hearing and issue a written decision
within forty-five (45) calendar days after being selected by the parties, unless the parties agree to
extend the timeline. The arbitrator’s decision will be final and binding upon the parties, subject
to judicial review of arbitration decisions as provided by law. If Pekel (or his representative)
fails to mail, electronically mail, or hand-deliver a written request for arbitration to the School
Board Chair within ten (10) calendar days, Pekel will be deemed to have acquiesced to the
discharge, and Pekel will have no further right to challenge the discharge or to bring a claim
against the District.

Section 4: Mutual Consent. This Contract may be terminated at any time by mutual consent of
the School Board and Pekel.

Section 5: Superintendent’s Option. Pekel may terminate this Contract at any time by
providing written notice to the School Board at least one hundred twenty (120) calendar days
before the date of termination

Section 6: Limited Application of Section 122A.40. Except as explicitly stated in this

Contract, the provisions of Minnesota Statutes section 122A.40 do not apply to the District’s
employment of Pekel or to this Contract. Pekel does not have any continuing contract rights
under Minnesota Statutes section 122A.40. By operation of law, Minnesota Statutes section
122A.40, subdivisions 3 and 19 apply to Pekel’s employment with the District.

ARTICLE II
RESPONSIBILITIES

Section 1: Licensure. Throughout the term of this Contract, Pekel must hold a valid and
appropriate license to work as a superintendent in the State of Minnesota. Pekel must provide a
copy of his superintendent’s license to the School Board before July 1, 2022.

Section 2: Compliance with Laws and Policies. Pekel must comply with all applicable federal
and state laws and with all rules, regulations, and policies of the School Board and the State of
Minnesota, including those rules, regulations, and policies that currently exist and any that are
established or amended during the term of this Contract.

Section 3: Assigned Duties. Pekel must faithfully perform all services that the School Board
prescribes or assigns to Pekel, regardless of whether those services are specifically described in
this Contract or in a job description. At any time during the term of this Contract, the School
Board may place Pekel on paid administrative leave or assign him different administrative duties.
Regular and prompt attendance is an essential function of Pekel’s job.

Section 4: Basic Duties. Pekel will have charge of the administration of the schools under the
direction of the School Board, unless the Board reassigns Pekel to a different position. Toward
that end, in the absence of a reassignment, Pekel will perform the following functions: serve as
the superintendent and chief executive officer of the School District; direct and assign teachers
and other District employees under his supervision; organize, reorganize, and arrange the
administrative and supervisory staff, including instruction and business affairs, as best serves the
District, but subject to the approval of the School Board; select all personnel subject to the
approval of the School Board; recommend policies, regulations, rules, and procedures that are
necessary for the District; visit and supervise the schools in the District; report and make
recommendations about the condition of the schools in the District when advisable or at the

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School Board’s request; to the extent required by law, annually evaluate each school principal
assigned responsibility for supervising a school building in the District; superintend school
grading practices and examinations for promotions; make reports that are required by the
Commissioner of the Minnesota Department of Education; and perform all duties incident to the
office of the superintendent. Unless the Board reassigns Pekel to a different position, Pekel will
serve as an ex-officio member of the School Board and all School Board committees and, upon
request, will provide administrative recommendations on each item of business considered by
each of these groups. The School Board will refer to Pekel all material criticism, complaints,
and suggestions regarding the operation of the District to resolve in a manner consistent with
School Board policies.

Section 5: Evaluation. At the written request of Pekel, the School Board will complete an
annual evaluation of Pekel’s performance. As part of its annual evaluation, the School Board
will consider Pekel’s progress on any goals established by the School Board for the previous
school year and the year in which the evaluation takes place. The School Board will provide
feedback for successful leadership practices and will identify any areas for improvement.

ARTICLE III
COMPENSATION

Section 1: Basic Salary. The District will pay Pekel a gross annual salary of two hundred
twenty-three thousand dollars and zero cents ($223,000.00) for the 2022-2023 school year; two
hundred twenty-seven thousand five hundred dollars and zero cents ($227,500.00) for the 2023-
2024 school year; and two hundred thirty-two thousand dollars and zero cents ($232,000.00) for
the 2024-2025 school year. During each school year covered by this Contract, the District will
pay Pekel his gross annual salary in roughly equal installments, less applicable withholdings and
deductions, based on the District’s regular payroll schedule.

Section 2: TSA Matching Payments. Pekel may determine the amount of the salary described
in Article III, Section 1 that he would like to receive as salary and the amount that he would like
to have the District place in a tax sheltered annuity (“TSA”) of his choice through payroll
deduction. To the extent permitted by law, the District will match Pekel’s contributions to a
qualifying TSA on a dollar-for-dollar basis, up to a maximum of two thousand seven hundred
fifty dollars and zero cents ($2,750.00) during each school year covered by this Contract. Once
the District has made a matching payment to the TSA, the matching payment will become the
property of Pekel. However, if the District decides to discharge Pekel, the District will not be
required to make any additional matching payments after voting to discharge Pekel.

Section 3: Responsibility for TSA Compliance. Pekel and the annuity companies involved are
solely responsible for ensuring that the TSA complies with Section 403(b) of the Internal
Revenue Code, as amended, and Minnesota law. Pekel hereby waives any right that he might
otherwise have to bring a claim against the District for any issue related to whether the TSA
complies with Section 403(b) of the Internal Revenue Code, as amended, and any applicable
provisions of Minnesota law. Pekel also waives any right that he might otherwise have to
demand direct payment to him of the amount that he identifies for contribution to the TSA. The

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District’s only obligation under Article III, Section 2 is to make the specified contributions to the
TSA.

Section 4: Automobile Allowance. The School Board recognizes that Pekel must regularly use
his personal vehicle to travel for District business. Accordingly, pursuant to Minnesota Statutes
section 471.665, subdivision 3, the District will pay Pekel a monthly automobile allowance in the
amount of four hundred dollars and zero cents ($400.00), less any applicable withholdings and
deductions.

ARTICLE IV
DUTY YEAR AND LEAVES OF ABSENCE

Section 1: Basic Work Year. The position of superintendent has exempt status under the Fair
Labor Standards Act. Pekel’s duty year will be twelve (12) months in length and will correspond
to the school year (July 1 to June 30) covered by this Contract. Pekel must work full-time during
the entire school year (260 duty days), including those legal holidays on which the School Board
is authorized to conduct school if the School Board so determines, less vacation, paid holidays,
and sick leave used during the school year. Pekel must be on duty during any emergency,
natural or unnatural, unless otherwise excused in accordance with School Board administrative
policy.

Section 2: Vacation. Pekel will earn twenty-five (25) days of paid vacation during each school
year (July 1 to June 30) that is covered by this Contract. Pekel must obtain prior approval from
the School Board Chair before taking more than ten (10) consecutive days of paid vacation,
unless the vacation days are being utilized for a leave taken pursuant to the Family Medical
Leave Act (“FMLA”). Pekel must take vacation days during the school year in which they were
earned, or within six (6) months after the school year in which they were earned. To the extent
permitted by law, at the end of each calendar year, Pekel may ask the School Board to contribute
the value of up to ten (10) days of unused vacation to a TSA 403(b) Plan, provided that the
contribution does not exceed the applicable limitations on contributions imposed by the Internal
Revenue Code or Minnesota law. The value of one unused vacation day (i.e. the daily rate of
pay) will be the equivalent of Pekel’s gross annual salary divided by 260. Pekel will forfeit any
additional vacation days that are not taken within six (6) months after the contract year in which
they were earned or converted to a 403(b) contribution as permitted under this paragraph.

Section 3: Payment of Unused Vacation Upon Nonrenewal. If the School Board does not
renew this Contract or if Pekel resigns effective at the end of the term of this Contract, the
School Board will pay Pekel at his daily rate of pay for each day of vacation that Pekel has
accrued but has not used, forfeited, or converted to a 403(b) contribution as of June 30, 2025. If
Pekel terminates this Contract mid-term pursuant to Article I, Section 5, the District will not be
required to compensate Pekel for any vacation that has not been used, forfeited, or converted to a
403(b) contribution before the effective termination date. Similarly, if the Board discharges
Pekel pursuant to Article I, Section 3, the District will not be required to compensate Pekel for
any accrued and unused days of vacation that exist on the effective date of the discharge.

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Section 4: Paid Holidays. Pekel will be entitled to nine (9) paid holidays during each school
year covered by this Contract. Unless otherwise designated by the School Board, the paid
holidays will be: Independence Day; Labor Day; Thanksgiving Day; Day after Thanksgiving;
Day before Christmas; Christmas Day; New Year’s Day; Martin Luther King, Jr. Day; and
Memorial Day.

Section 5: Accrual of Sick Leave. Pekel may carry over into the 2022-2023 school year any
unused days of sick leave he accumulated from his employment in the District during the 2021-
2022 school year. In addition, Pekel will earn one (1) day of paid sick leave for each month that
he works under this Contract. Pekel may accumulate up to forty-eight (48) days of paid sick
leave. Pekel may use paid sick leave for any illness, injury, or health condition that prevents him
from performing his job duties. In addition, Pekel may use paid sick leave for any reason that is
explicitly permitted by law or by another provision of this Contract. Upon ending his
employment with the District for any reason, Pekel is not entitled to payment for any unused
days of sick leave.

Section 6: Bereavement Leave. Pekel will be granted up to five (5) days of bereavement leave,
without loss of pay, for a death in Pekel’s immediate family, which includes Pekel’s spouse,
child, parent, grandparent, grandchild, sibling, parent-in-law, daughter-in-law and son-in-law.
Days utilized for bereavement leave will be deducted from Pekel’s accumulated sick leave.
Upon ending employment with the District for any reason, Pekel is not entitled to payment for
any unused days of bereavement leave.

Section 7: Workers’ Compensation Differential. In accordance with Minnesota Statutes

Chapter 176, if Pekel is injured while performing duties for the District and qualifies for
workers’ compensation benefits, he may draw from his accumulated sick leave in order to make
up the difference between his regular salary and the workers’ compensation insurance payments
he receives during the term of this Contract. Pekel’s accumulated sick leave will be reduced in
proportion to the amount of compensation paid pursuant to this Section. This Section of the
Contract will immediately cease to apply once Pekel exhausts his accumulated sick leave.

ARTICLE V
INSURANCE

Section 1: Health Insurance. The District will select and offer one or more group health
insurance plans to Pekel. If Pekel elects single coverage, the District will contribute $780 per
month toward the monthly premium for group health insurance. If Pekel elects family coverage,
the District will contribute $1,311 per month toward the monthly premium for group health
insurance. To the extent that the cost of the monthly premium exceeds the amount of the
District’s contribution, Pekel must pay the remaining amount of the premium through payroll
deduction.

Section 1(a): High Deductible Health Plan: If Pekel elects single coverage and is
enrolled in the District’s high deductible health plan on January 1, the District will make
a $750 contribution to Pekel’s health reimbursement account on January 31 of that school
year. If Pekel elects family coverage and is enrolled in the District’s high deductible

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 health plan on January 1, the District will make a $1,500 contribution to Pekel’s health
reimbursement account on January 31 of that school year.

Section 1(b): Qualified High Deductible Plan: If Pekel elects single coverage and is
enrolled in the District’s qualified high deductible health plan on each January 1, the
District will make a $1,000 contribution to Pekel’s health savings account on January 31
of that school year. If Pekel elects family coverage and is enrolled in the District’s
qualified high deductible health plan on each January 1, the District will make a $2,000
contribution to Pekel’s health savings account on January 31 of that school year.

Section 2: Dental Insurance. The District will select and offer one or more group dental
insurance plans to Pekel. If Pekel elects single coverage, the District will contribute $50 per
month toward the monthly premium for dental insurance. If Pekel elects family coverage, the
District will contribute $115 per month toward the monthly premium for group dental insurance

Section 3: Life Insurance. The District will select and offer a group term life insurance policy
with a maximum death benefit of five hundred thousand dollars and zero cents
($500,000.00). This paragraph will not apply unless Pekel enrolls in the plan that is offered by
the District. During the term of this Agreement, the District will pay the full amount of the
monthly premium for the policy offered by the District. The life insurance policy will be
payable to Pekel’s named beneficiary.

Section 4: Long Term Disability Insurance. The District will pay the full amount of the
monthly premium for a long-term disability (“LTD”) insurance plan selected by the District for
Pekel.

Section 5: Claims Against the District. The District is not promising or guaranteeing that any
particular claim will be paid or covered by insurance. The District’s only obligation is to select
an insurance plan and make the premium contributions that are described in this Contract. The
eligibility and coverage of Pekel and any dependents will be governed entirely by the terms of
the applicable insurance policy. No claim may be made against the District as a result of denial
of insurance benefits. Subject to any applicable requirements of federal or state law, the
District’s obligation to make any contribution toward the cost of any premium identified in this
Contract will cease immediately upon termination or expiration of this Contract.

ARTICLE VI
PROFESSIONAL GROWTH AND REIMBURSEMENT

Section 1: Professional Growth Conferences and Meetings. The School Board recognizes the
importance of having Pekel attend and participate in conferences and meetings for professional
growth. Accordingly, Pekel is encouraged and expected to attend appropriate professional
meetings at the local, state, and national level. The District will pay for, or reimburse Pekel for,
all valid, reasonable, and necessary expenses associated with Pekel’s travel to and attendance at
such conferences and meetings whenever his attendance is required or permitted by the School
Board. Pekel must periodically report to the School Board about the meetings and conferences
he has attended. To receive reimbursement for expenses, Pekel must file itemized expense

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statements in compliance with School Board policy and law. Notwithstanding any other
provision in this Contract, the School Board in its sole discretion may limit the number and type
of conferences and conventions Pekel may attend.

Section 2: Dues. The District will pay the professional dues to the American Association of
School Administrators, Minnesota Association of School Administrators, and another
organization of Pekel’s choice. In addition, the District will pay the dues for Pekel to be a
member of civic organizations and service organizations that are mutually agreed upon by Pekel
and the District.

Section 3: Business Expenses. The District will reimburse Pekel for reasonable, legal, and
necessary expenses that he incurs in the course of conducting District business. To obtain
reimbursement, Pekel must file itemized expense statements in compliance with School Board
policy and law. The School Board retains the discretion to approve or deny an expense. Pekel is
encouraged to seek approval for significant expenses in advance of incurring the expense.
Because Pekel is receiving an automobile allowance, Pekel may not claim reimbursement for
miles driven in his personal vehicle. Notwithstanding any other provision in this Contract, the
School Board in its sole discretion may further define and limit the number and type of expenses
for which Pekel may claim reimbursement.

ARTICLE VII
MISCELLANEOUS

Section 1: Outside Activities. Although Pekel must devote full time and due diligence to the
affairs and the activities of the District, he may also serve as a consultant to other Districts or
educational agencies, lecture, engage in writing and speaking activities, and engage in other
activities if, as solely determined by the School Board, such activities do not impede Pekel’s
ability to perform the duties of Pekel. Pekel may not engage in other employment, consultant
service, or other activity for which a salary, fee, or honorarium is paid without prior approval
from the School Board Chair.

Section 2: Indemnification and Provision of Counsel. In the event that an action is brought or
a claim is made against Pekel arising out of or in connection with his employment with the
District and he is acting within the scope of employment or official duties, the District will
defend and indemnify Pekel to the extent required by law. Indemnification, as provided in this
Section, will not apply in the case of malfeasance in office or willful or wanton neglect of duty.
In addition, the District’s obligation to defend and indemnify Pekel is subject to the limitations
stated in Minnesota Statutes Chapter 466 and the case law.

Section 3: Jury Duty. If Pekel serves on jury duty during the term of this Contract, he will
receive full pay from the District, without deduction from accumulated vacation or sick leave,
provided that he submits to the District any compensation he received from being called to sit as
a juror.

Section 4: Mandatory Disclosure. Before entering into this Contract, Pekel must disclose, in
writing, the existence and terms of any buyout agreement, including amounts and the purpose for

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the payments, relating to his contract with any other school board. For purposes of this Contract,
a “buyout agreement” is any agreement under which Pekel was employed as a superintendent;
left before the term of the contract was over; and received a sum of money, something else of
value, or the right to something of value for some purpose other than performing the services of a
superintendent. The failure to make such a disclosure will render this Contract void as a matter
of law.

Section 5: Severability. If a court of law determines that any provision of this Contract is
invalid or unenforceable by operation of law, the remainder of the Contract will remain in full
force and effect.

Section 6: Entire Agreement. This Contract reflects the entire agreement between the parties
relating to the District’s employment of Pekel during the three-year term of this Contract.
Neither party has relied upon any statements or promises that are not set forth in this document.
This Contract supersedes any other agreements between the parties that relate to the three-year
term covered by this Contract and any inconsistent provisions in any employee handbook or
District policy. Pekel understands and agrees that any handbooks, manuals, or policies adopted
by the District do not create an express or implied contract between the District and Pekel. No
waiver or modification of any provision of this Contract will be valid unless it is in writing and
signed by both parties.

IN WITNESS WHEREOF, the parties have voluntarily entered into this Contract on the dates
shown below. This Contract will not become effective unless it is approved by the School Board
and signed by both parties and until Pekel fulfills the terms of his existing contract with the
District.

KENT PEKEL

___________________________________ __________________________
Kent Pekel, Ed.D. Dated

INDEPENDENT SCHOOL DISTRICT NO. 535

___________________________________ __________________________
Jean Marvin, School Board Chair Dated

___________________________________ __________________________
Don Barlow, School Board Clerk Dated

RASW: 207489