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<br />Mr. Yamamoto <br />September 2, 2009 <br />Page 3 <br /> <br />bearing on, or relevance to, the issues involved in this matter (or in any other matter for which a <br />lawsuit has been or may be filed in the future). You understand that to do so may cause serious <br />problems with the Court, and with the Firm's ability to properly represent the City, and may lead <br />to Court imposed sanctions, including monetary sanctions or worse, and may lead to termination <br />of this Agreement. <br /> <br />As the City's lawyer in this matter, I will need to communicate with you and others at the <br />City about this representation. You agree to remain available (and to work with me to <br />communicate with other City employees, consultants and elected officials, as necessary) to <br />facilitate this work, to provide factual information and documents, and to make decisions when <br />and as necessary. In order for the Firm to assist the City effectively and efficiently, the City <br />must provide all factual information it has which relates to the subject matter of this engagement, <br />and be available to make any appropriate business or technical decisions. In addition, I <br />encourage you to share with me at all times your expectations and any concerns regarding these <br />legal services. You and the City should be actively involved in the strategy and management of <br />this matter so I encourage candid and frequent communication between us. I will keep you <br />informed of developments regarding this matter and will consult with you as necessary to ensure <br />the timely, effective and efficient completion of the work. <br /> <br />4. Progress and Reporting <br /> <br />The Firm will communicate information and advice to you, provide you with copies of <br />significant documents, and keep you apprised of significant developments. Unless the City <br />instructs otherwise, the Firm will direct any oral or written communications to you. The Firm <br />regularly communicates using e-mail, cell phones and facsimile. Please advise me immediately <br />if you do not consent to the use of internet e-mail and/or cell phones and/or facsimile as a form <br />of communication, including for attorney-client communications. <br /> <br />5. Staffing Basis for Fees and Costs <br /> <br />I am committed to providing the City with quality legal services on an efficient and cost- <br />effective basis. You should never hesitate to contact me if, and when, any question arises. At <br />present, my hourly rate for this matter is $450, which may be adjusted from time to time. <br />Additionally, the City authorizes the Firm to consult with or employ other lawyers to assist on <br />this matter, if necessary, as the Firm deems advisable. The City will be billed for other attorneys <br />and staff at their then current hourly billing rates, which are subject to adjustment from time to <br />time. In addition, the City is also obligated to pay for Costs, Disbursements and Litigation <br />Expenses ("COSTS" defined below) associated with this matter. <br /> <br />6. Billing Procedures <br /> <br />The Firm reserves the right to review and adjust billing rates from time to time, generally <br />as of January 1 st of each year. Any rate adjustments will be reflected in your invoice. The <br />Firm's general practice in sending invoices, how past due accounts are handled, and other <br />important matters are set forth in detail in the enclosure ("Information for Clients"). <br />