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Aladean Rose May 30, 2012 Page 2 We will waive our usual retainer fee and only include the following retainer fee information for your reference should we require a retainer fee in the future. We hereby reserve the right to require a retainer fee should the City not comply with the Terms of Payment section below. By executing this engagement letter, the City agrees to pay upon written request a retainer fee if it does not comply with the Terms of Payment. The retainer, if one is paid, shall be deposited in trust to pay costs actually incurred now or hereafter, which amount, less actual costs paid to us therefrom, will be refunded upon conclusion of the representation to the extent costs have not been incurred in excess of the amount paid. PROFESSIONAL FEES AND EXPENSES Professional fees in this matter will be billed for actual time spent by an attorney or paralegal at his or her hourly rate in effect at the time the work is performed. As a municipal entity, the City will be billed at our special governmental rates. My governmental hourly rate is $195 per hour, a substantial discount from my normal hourly rate of $290. Hourly rates for other attorneys and paralegals are reflected on the attached rate sheet. I have also attached our normal rates for you to compare. Hourly rates are typically adjusted annually, beginning in January of each year. In addition to professional fees, the City agrees to reimburse us for all expenses attributable to your matter, including, but not limited to, photocopying, facsimile charges, telephone charges, express mail charges, etc. Any such expenses will be detailed in your statements. In connection with such expenses, our policy is to recover only our costs; we do not add a service charge or premium on such expenses. TERMINA TION A ND WITHDRAWAL You may terminate our representation at any time. Termination by the City will not, however, relieve the City of responsibility for payment of professional fees and expenses incurred before notice is given us, or for those incurred in connection with the orderly transition of your matter to successor counsel. We may withdraw from representation under several circumstances. For instance, the Rules of Professional Conduct require that we withdraw from representing a client where we discover that a client seeks our assistance to engage in criminal or fraudulent conduct, continued representation of the client will result in violation of the Rules, the client insists on pursuing an objective that we consider repugnant or imprudent, the client fails substantially to fulfill an obligation to us regarding our services (including prompt payment of professional fees and expenses), or where the continued representation of the client will result in an unreasonable financial burden on us or has been rendered unreasonably difficult by the client.