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ORIGINAL SECOND AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT This SECOND AMENDMENT to the EMPLOYMENT AGREEMENT dated August 24, 2015 ("Agreement") between the City of Redwood City, a Charter City and Municipal Corporation of the State of California ("City"), and Melissa Stevenson Diaz ("Employee") is entered into as of the 16`h day of October, 2017. WHEREAS, in conformance with its performance review and compensation program for its appointees, the City Council has evaluated salary survey data of comparable positions in benchmark cities, and wishes to adjust Employee's salary and benefits accordingly as well as acknowledge Employee' s performance; and WHEREAS, it is now the mutual desire and intent of the parties to amend the Agreement to increase Employee's annual salary to $278,676. NOW THEREFORE, in consideration of the mutual covenants contained in the original Agreement and as provided herein, the Agreement is AMENDED to read as follows: Section 3 of the Agreement, entitled "Compensation & Benefits," is hereby deleted and replaced with Section 3 below. 3. COMPENSATION & BENEFITS A. Employee shall be paid two hundred seventy-eight thousand six hundred seventy-six ($278,676) per year, payable in installments at the same time other City executive management employees are paid. Hereafter, the City Council may adjust Employee's salary by resolution. B. The City Council shall conduct an annual evaluation each year and may also conduct quarterly evaluations. The evaluation process shall address goals and objectives set for the past twelve-month period and establish goals and objectives for the upcoming 12 -month period. The City Council shall provide employee with its written comments, if any, during its annual evaluation of Employee, and may discuss its evaluation with Employee. At the time of evaluation, the City Council will consider performance-based salary adjustments. The City Council shall also provide an informal mid -year performance review of the Employee after her first six months of employment. C. Employee shall be entitled to the benefits specified in City of Redwood City Executive Management Summary of Benefits (Dated July 2017), as it may be amended from time to time, and which is attached hereto as Exhibit A and incorporated herein by reference, except that Employee's annual professional development allowance shall be $2,400. Employee's annual professional development allowance may ATTY/AGR/EMPLOYMENT AGREEMENT/SECOND AMENDMENT CITY MANAGER — DIAZ REV: 11-02-17 MI Page 1 of 3