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Attachment 1 THIRD AMENDMENT TO THE AGREEMENT FOR EMPLOYMENT TOWN ATTORNEY This Amendment to Town Agreement AGR13-180 is entered into this 7th day of February, 2017, by and between the Town of Los Gatos, a municipal corporation ("Town") and Robert Schultz (“Employee”). RECITALS: WHEREAS, Town and Robert Schultz executed an Agreement effective December 12, 2013 to provide Town Attorney services to the Town; WHEREAS, a First Amendment to the Agreement was executed on December 17, 2015 to amend the employment agreement to award a 2% wage increase to the annual base salary, effective with the Town Attorney’s anniversary date of December 12, 2014 and a lump sum performance bonus of $2,000; and WHEREAS, a Second Amendment to the Agreement was executed on January 19, 2016 to amend the employment agreement to award a 5% wage increase to the annual base salary, effective with the Town Attorney’s anniversary date of December 12, 2015 and a lump sum performance bonus of $5,000; and WHEREAS, on the basis of the annual evaluation, the Town Council desires to amend the employment agreement to award a 2.5% wage increase to the annual base salary, effective with the Town Attorney’s anniversary date of December 12, 2016, a lump sum performance bonus of $ 2,500, and transfer the $350 per month ($4,200 annually) car allowance to annual base salary; and IT IS THEREFORE AGREED by the parties as follows: Section 4 of the Agreement is amended to read as follows: 4. Compensation (a) Base Salary. (1) The Town Attorney is awarded a $4,200 annual base salary increase representing the transfer of auto allowance amount plus a 2.5% wage increase for a total annual base salary of $207,393.00, effective with the Town Attorney’s anniversary date of December 12, 2016. ATTACHMENT 1 (b) Performance Review. (1) On the basis of an annual performance evaluation covering the third year of employment from December 2015 to December 2016, the Town Attorney is awarded a one-time lump sum payment of $2,500. (e) Auto Allowance. Not applicable. IN WITNESS WHEREOF, the parties have executed this Amendment to the Town Attorney Agreement on the date written above. TOWN OF LOS GATOS Marico Sayoc, Mayor Robert Schultz, Town Attorney ATTEST: Shelley Neis, Clerk Administrator for Town of Los Gatos