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THIRD AMENDMENT TO THE CONTRACT BETWEEN CITY OF PLEASANTON AND NELSON FIALHO This Third Amendment is made and entered into July _, 2015, between the City of Pleasanton and Nelson Fialho. WHEREAS, this Third Amendment amends the contract between the City and Nelson Fialho dated October 13, 2004, as amended by the First Amendment dated December 4, 2007, and as amended by the Second Amendment dated January 4, 2011 (collectively the Contract). NOW, THEREFORE, in consideration of the mutual promises expressed in this Third Amendment, the parties agree as follows: A. Section 3. Compensation is amended to provide that: on August 1, 2015, Nelson's salary shall increase by 5% from $197,026 to $206,877; then on August 1, 2016 Nelson's salary shall increase by 5% from $206,877 to $217,221; and beginning August 1, 2015 Nelson shall be provided an annual contribution of 2% of salary into his deferred compensation plan. B. Section 4. Benefits is amended to provide that: The City will contribute a monthly amount for medical insurance coverage for Nelson no greater than the lowest cost HMO family rate offered. During the term of this contract, the City shall offer Kaiser as a health plan option. Effective August 1, 2015, Nelson will contribute one of the following two amounts, whichever is greater: 1. $25.00 per month; or 2. The difference between the family rate of the lowest cost HMO and the premium of Nelson's more expensive plan selection. Contributions will be deducted from Nelson's paycheck on a pre -tax and bi- weekly basis. C. Section 5. Vacation Leave is amended to provide that Nelson shall accrue vacation leave at the rate of twenty -five (25) days annually. D. Section 7. Vehicle Allowance / Cell Phone. The first sentence of this section is amended to provide that Nelson may select either a car allowance of $400 monthly, or a vehicle furnished by the City. Nelson shall have the exclusive and unrestricted use of