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" LjpAL SERVICES ENGAGEMENT LEIER January 1, 1994 Mr. Robert T. Herrera City Manager City of La Porte P.O. Box 1115 604 W. Fairmont Parkway La Porte, Texas 77571 Dear Mr. Herrera: Please accept this letter as a proposed agreement for professional services between Abrams Scott & Bickley, LLP. (the "Firm"), and the City of La Porte, Texas ("City"). Upon execution, this letter will confirm the engagement of the Firm to represent the City as special counsel on designated litigation matters brought by or against the City, other than litigation in which the City's self-insurance plan or other direct insurance provides for the payment of defense costs. (the "Representation Matters"). The Firm is pleased to be provided the opportunity to represent the City on all such matters in which the City specifi- cally requests our assistance. The Firm will not represent the City in any matter unless our engagement is first requested in writing and confirmed in writing by the Firm and the Firm shall only be obligated to perform such services upon such written confirmation. I will be principally responsible for the Representation Matters on which the City retains the Firm and will be assisted from time to time by others in the firm. Method of Determining Fees As a professional courtesy to the City, we have agreed to perform our work for the City on litigation matters on a discounted basis; that is, the City will be charged our customary hourly rate for attorneys and staff whose rates are less than $105 per hour and will be charged the greater of $105 per hour or 85% of our customary billing rate for any attorneys with rates greater "than $105 per hour. The fees will be computed principally on the basis of the time expended, at the hourly rates fixed from time to time for the lawyers, paralegals or law clerks rendering the services. The Firm shall also consider in the determination of the fees for our services such factors as the time expended, the unusual value of certain services, the issuance of formal opinions, and the emergency nature of the work performed and the consequent necessity that the work of other clients be deferred or other engagements declined. Periodic billings may be rendered entirely on a time basis with adjustments for other factors reflected in later billings. Hourly rates are subject to increase at the beginning of the Firm's fiscal year or otherwise upon its prior notification to City. Attached as Exhibit "A" is a schedule listing the current hourly rates of the Firm lawyers and legal assistants most likely to work on matters for the City at this time.