The Lexington Public Library is entering mediation with Kathleen Imhoff, the Chief Executive that was fired in July.
Imhoff hired a lawyer and threatened to sue unless the library pays her $130,000 annual salary and benefits for the remaining two years of her contract, according to the Lexington Herald Leader.
Library officials said that they want the matter resolved after a year of questions about Imhoff's spending of library funds on travel, meals, gifts and other items.
Also, a city audit turned up pornography on the laptop computer the library had provided her.
She has denied any wrong-doing.