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3.3 Section 4(B) of the Employment Agreement (Benefits <br />Automobile/Transportation) is amended in its entirety to read as follows: <br />"(B). Automobile/Transportation. Effective January 1, 2003, when the <br />existing automobile lease matures, or sooner if the lease is assumed by <br />another department, the City shall pay City Manager an automobile <br />allowance for a personal vehicle required for City business. The <br />automobile allowance shall be $500 per month. City Manager shall be <br />responsible for the costs of operation, repair, maintenance, and liability, <br />property damage and comprehensive insurance for such personal <br />vehicle." <br />3.4 Section 6(C)(1) of the Employment Agreement is amended in its entirety <br />to read as follows: <br />"(C)(1)ln the event City Manager is terminated without cause during <br />such time that the City Manager is willing and able to perform his duties <br />under this Agreement, the City agrees to provide City Manager with a <br />maximum severance payment equal to twelve (12) months base salary. <br />City Manager and his dependents shall also receive continuing health <br />insurance plan coverage for a twelve month period from the effective <br />date of termination. Pursuant to Government Code section 53261, the <br />continuing eligibility of City Manager and his dependents for health <br />insurance plan coverage shall terminate should City Manager obtain other <br />employment." <br />3.5 Except as amended by this First Amendment, all provisions of the <br />Employment Agreement shall remain in full force and effect and shall govern the <br />actions of City and City Manager under this First Amendment. <br />SIGNATURES ON NEXT PAGE] <br />R V PUB/NGS/633088 2 <br />