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City Attorney's Office for Santa Ana <br />May 27, 2020 <br />Page 2 <br />information you have supplied that we have retained will be kept confidential in accordance with <br />applicable rules of professional conduct. We will promptly return your papers and property at your <br />request upon payment of outstanding fees and costs and will retain our own files, including lawyer <br />work product and we retain all intellectual property in our work. We will transfer all retained <br />documents to the personnel responsible for administering the firm's records retention program. <br />You agree that we may securely dispose of or destroy any files you have not requested to be <br />returned to you a reasonable time after termination of this matter in accordance with our document <br />management policy, which currently calls for retention of materials pertaining to a matter for at <br />least ten years after the matter ends. <br />You are engaging our turn to provide legal services in connection with a specific matter. <br />After completion of the matter, changes may occur in applicable laws or regulations that could <br />affect your rights and liabilities. You agree that, unless you actually engage us after the matter's <br />completion to provide additional advice on issues arising from the matter, we will have no <br />continuing obligation to advise as to future developments. <br />3. Fees and Expenses. The firm's fees are based primarily on the hourly billing rate <br />for each attorney and legal assistant devoting time to a matter. The firm's hourly billing rates for <br />attorneys working on this matter will be $640. Time for paralegals and legal assistants will be <br />billed at agreed upon rates that will be substantially lower than attorney rates. The firm will not <br />charge for partner Quyen Ta's travel time for this matter. Other factors may be taken into <br />consideration in determining the firm's fees in accordance with applicable rules of professional <br />conduct. The firm and you have agreed that the total sum to be expended by you for the first phase <br />of work under the scope of this agreement shall not exceed $350,000. You acknowledge that you <br />were provided with 100 hours of initial time on this matter at no charge when firm partners Quyen <br />Ta, Arwen Johnson, and Craig Bessenger were at their prior law firm. You also acknowledge that <br />estimates and budgets are uncertain and not guarantees, and that this amount is not intended to <br />serve as a cap on fees due to the firm for its services within the scope of this agreement. The firm <br />will seek prior approval from you before undertaking work that would cause us to exceed <br />$350,000. If the firm recovers attorneys' fees for its services in this matter, those fees will be <br />donated to the City of Santa Ana. The firm's invoices will include separate charges for expenses <br />incurred in performing its services, such as photocopying, delivery services, computerized <br />research, and search and filing fees. Third party providers' fees and expenses, such as for <br />consultants, appraisers, experts, and local counsel, will be billed directly to you by the provider. <br />Invoices will normally be sent monthly for work performed and expenses posted the <br />previous month. Payment is due within 30 days of your receipt of the firm's invoice. If any <br />invoice remains unpaid for an unreasonable length of time, the firm may cease performing services <br />for you or withdraw from the engagement unless satisfactory arrangements are made to pay <br />outstanding invoices and future fees and expenses. <br />Unless you and we have agreed that our compensation will be made on a contingent, <br />capped, or flat fee basis, you understand that the cost of handling a matter is not predictable and <br />that we have not made a commitment or promise as to the maximum fees and expenses necessary <br />to complete a matter. You agree that, absent agreement on a contingent fee arrangement, payment <br />of the firm's fees and costs does not depend on the ultimate outcome of a matter. <br />WORKAMM36922579.0 <br />