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B. SITYNN and CITY agree that this Agreement has been entered into for the benefit <br />of SITYNN and that CITY shall be deemed a third party beneficiary of this Section 1 and Section <br />2. <br />2. Acknowled eg ments <br />SITYNN acknowledges that he: <br />A. SITYNN has been advised by the CITY that his interests in the Lawsuit conflict <br />with those of the CITY. <br />B. Has received from CITY and his current counsel a full disclosure of the facts <br />pertaining to present and potential conflicts of interest; <br />C. Has been advised by the CITY to seek independent counsel regarding this <br />Agreement; and <br />D. Consents to representation by counsel of CITY'S choosing in the Lawsuit under <br />these circumstances. <br />3. Reservation of Rivhts <br />A. Under California Government Code section 825(a), the CITY reserves its rights <br />not to pay any judgment, compromise or settlement on behalf of SITYNN until it is established <br />that the injury complained of in the above -referenced action arose out of an act or omission <br />occurring within the scope of SITYNN'S position and duties as a Police Officer employed by the <br />CITY. <br />B. Under California Government Code section 825.6(a), if the CITY pays any <br />portion of a judgment, compromise or settlement on behalf of SITYNN in connection with the <br />lawsuit, the CITY reserves its right to seek indemnity for such payment from SITYNN, unless <br />SITYNN establish that the action complained of in the Lawsuit arose within the scope of <br />SITYNN'S positions and duties as an employee of the CITY and the CITY cannot establish that <br />SITYNN's actions were the result of actual fraud, corruption or actual malice. <br />C. Under California Government Code section 825.2(b), if the CITY pays any <br />portion of ajudgment, compromise or settlement on SITYNN'S behalf in connection with the <br />Lawsuit, SITYNN may seek recovery of such amount from CITY only if SITYNN establishes <br />that the act or omission upon which the claim or judgment is based occurred within the scope of <br />SITYNN'S position and duties as a Police Officer of the CITY and if the CITY fails to establish <br />that SITYNN acted or failed to act because of actual fraud, corruption, or actual malice, or that <br />SITYNN willfully failed or refused to conduct the defense of the claim or action in good faith, or <br />to reasonably cooperate in good faith in the defense conducted by CITY. <br />4. Execution of Other Documents <br />SITYNN and the CITY hereto agree that they will cooperate with each other and will <br />execute and deliver, or cause to be delivered, all such other instruments, and will take all such <br />other actions, as any party hereto may reasonably request from time to time in order to effectuate <br />the provisions and purposes hereof. <br />