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CONTRACT 3474A - PERM Amendment CLOSEDA2K4 14 AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT THIS AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT ( "AMENDMENT NO. 1 ") is entered into this 1St day of August, 2006, between the City of El Segundo ( "CITY ") and Jeffrey L. Stewart ( "EMPLOYEE ") with respect to that certain EMPLOYMENT AGREEMENT entered into between the CITY and EMPLOYEE on May 3, 2005 ( "AGREEMENT "). Effective as of July 1, 2006, the CITY and EMPLOYEE do hereby agree to amend Sections 4(A) and 4(C) of the AGREEMENT and replace these sections in their entirety with the following language: "(A) EMPLOYEE'S annual base salary is $162,680 which shall be paid in equal bi- weekly payments. In addition, subject to the City Council's sole discretion, on July 1, 2007, EMPLOYEE shall be eligible to receive a single payment in an amount not to exceed $17,500 based on EMPLOYEE'S performance during the prior twelve- month period of this Agreement. In addition, the City Council shall evaluate EMPLOYEE'S performance and salary annually following the effective date of this AGREEMENT and determine in its sole discretion whether to increase EMPLOYEE'S compensation. Any increase in compensation must be a writing signed by the parties;" "(C) EMPLOYEE shall be entitled to all other benefits of employment now in effect (excluding salary increases which are governed by Section 4 (A) above), or as hereafter approved by the City Council, which are provided to other management employees of the CITY, except EMPLOYEE shall be entitled to received up to three percent matching funds from the CITY based upon EMPLOYEE'S participation in the CITY'S deferred compensation program. EMPLOYEE shall accrue executive, vacation and sick leave at the maximum rate provided for management employees." All of the other terms and conditions of the AGREEMENT shall remain in full force and effect. CTTV ATTEST: rerfrom i 0 Mark ' Hensley, ity Attorney 3.,2 4 7 4 A .° .', EMPLOYEE: