Agmt09 Cohen, Steven Esq- Law Office of

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Mr. Yamamoto September 2, 2009 Page 4 7. Costs, Disbursements and Litigation Expenses ("COSTS") The City agrees to pay all costs, disbursements and litigation expenses reasonably incurred in connection with this engagement, including but not limited to referee and mediation fees, computer assisted legal research, consultant and expert fees, court and jury fees, court sanctions related to discovery and law and motion matters, deposition costs, air travel, hotel costs, car rental, and other travel expenses if non-local travel is required, messenger and overnight delivery charges, mileage at the Firm's prevailing rates, notary fees, parking costs while on client business, photocopy services, exhibit preparation costs, postage, service of process charges, other miscellaneous court costs, and similar items. All costs and expenses of third parties (other than attorneys who will be billed by the Firm at a predetermined hourly rate) will be charged at the Firm's cost or reasonably estimated cost if a specific cost is not known. 8. Retainer The Firm has not requested an initial retainer in this matter to secure payment of fees and expenses in connection with this engagement. The Firm reserves the right, however, to require a retainer based on the anticipated quantity of work to be performed and to insure that its invoices will be paid. If a lawsuit is filed against the City and a trial date is set, the Firm reserves the right to require the City to pay all sums then owing to it and to deposit the fees and costs the Firm estimates will be incurred in preparing for and completing the trial. Any retainer will be deposited in the Firm's client trust account. Any retainer may be used to payout of pocket costs, including but not limited to court filing fees, process server fees, and other miscellaneous court and vendor costs. If for any reason the City does not promptly pay any Firm invoice, including any COSTS relating to this matter, the Firm may, in its sole discretion and without further notice, apply available funds in the retainer account to pay past-due balances and the City agrees to immediately replenish any retainer deposit upon request. Failure to promptly replenish any retainer deposit or failure to advance any filing fees or other third party costs when requested may be grounds for termination of this Agreement. At the conclusion of this engagement, after payment of all other amounts due, the Firm will of course return any remaining balance in the retainer account to the City. Please note that if a retainer is requested, the retainer is not and should not be considered a ceiling or estimate of the amount of fees or costs that the City may actually incur in this engagement. Those actual fees and costs are likely to be significantly higher than any retainers. 9. Arbitration of Disputes I strive to maintain good working relationships with my clients. If the City becomes dissatisfied with any aspect of our relationship, I encourage you to bring your concerns to my attention immediately. I believe that most problems can be resolved by a frank and open discussion between us. Examples of the types of disputes which, although unlikely, could possibly develop between us are claims for unpaid fees and expenses, negligence, breach of contract, breach of fiduciary duty, fraud, any claim based on a statute, and likewise any defense or counterclaim. In the unlikely event that further resolution of a dispute is required, I propose