The contract was discovered during a search of the home of 32-year-old secretary Lucia Zingarellio. Her boss, 53-year-old regional councilor Luigi De Fanis, was arrested in November and is on trial for charges of bribery and corruption.
Zingariello was put under house arrest for being an accomplice to De Fanis.
Under the terms of the deal, Zingarellio would have been paid about $49,200 a year in exchange for sexual favors. When investigators found the contract, it had been torn to shreds and it took them weeks to put it back together.
While being interrogated by police, Zingarellio admitted to honoring the agreement.
“The councilor was obsessed with me...he forced me to sign it. I couldn't refuse, I was scared,” she reportedly said. “I want to put this all behind me, everyone is pointing the finger at me and I have done nothing. I didn't take a cent of the bribes."
De Fanis and Zingariello are both being investigated for extortion, aggravated fraud and embezzlement.
“I didn't think I was doing anything wrong...now my life is a nightmare,” Zingariello said. “I can't go out in my own town, I receive anonymous phone calls insulting me. The arrest has had a devastating impact on my life, because I have a small child.”
Notable deaths of 2014 [PHOTOS]