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• • AMENDMENT NO. 3 TO EMPLOYMENT AGREEMENT WITH CARL CAHILL FOR CITY MANAGER SERVICES THIS AMENDMENT is made and entered into at Los Altos Hills, California,this 11th day of June, 2009,by and between the TOWN OF LOS ALTOS HILLS, a municipal corporation, hereinafter sometimes referred to as the "TOWN," and CARL CAHILL, an individual, hereinafter referred to as "CAHILL." WITNESSETH: WHEREAS, TOWN and CAHILL (collectively "the Parties") are parties to that certain Employment Agreement for City Manager Services, dated June 22, 2006 ("Agreement"); and WHEREAS, in June of 2007,the Parties executed Amendment No. 1 to the Agreement, and in June of 2008, the Parties executed Amendment No. 2 to the Agreement; and • WHEREAS, the Agreement is due to expire June 30, 2009 and the Parties desire to execute Amendment No. 3 to the Agreement to extend the term of CAHILL's employment; and WHEREAS,the Parties further wish to provide an Employee Personal and Professional Development Account as part of CAHILL's compensation. NOW, THEREFORE,in consideration of the mutual promises, covenants and stipulations herein contained,the parties hereto agree as follows: AMENDMENT • 1. The term of the Agreement set forth in Section 2 (A) shall be extended through June 30, 2011. 2. A section titled"Employee Personal and Professional Development Account" shall be added to the Agreement,providing: "The City will reimburse CAHILL up to $1,500 per fiscal year for employee- incurred expenses in the areas of professional reference materials, outside training materials, extra coursework, additional professional organization memberships; wellness and physical fitness activities, and equipment and supplies related to the employee's maintenance of a home office." 3. All other provisions of the Agreement shall remain in full force and effect.