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LITIGATION ENGAGEMENT AGREEMENT <br />THIS LITIGATION ENGAGEMENT AGREEMENT (this Agreement"), dated September 6, 2013 is by and <br />between KNOBBE, MARTENS, OLSON & BEAR, LLP, a California limited liability partnership ('we,' "us'or the "Firm"), and <br />the client(s) identified below ('you"): <br />Client(s): City of Redlands <br />Type of entity and state of incorporation or formation: <br />Case(s)iMatter(s) Geomembrane Technologies, Inc. v. R.P.S. Engineering Corp., Doty Bros Equipment Co., <br />URS Corporation, URS Group, Inc., City of Redlands <br />Case Nos. EDCV13-01307 RGK(SP) Our File Nos. <br />We are pleased that you have requested that we represent you with respect to the above -referenced litigation matter(s) <br />(the 'Litigation"). For your information, the Firm is a limited liability partnership formed pursuant to the California Corporations <br />and Business & Professions Codes. This Agreement sets forth the terms of our engagement, including financial terms and how <br />we will address conflicts of interest. Specifically, you and we agree as follows: <br />THE SCOPE OF OUR ENGAGEMENT <br />A. Representation Limited to the Litigation <br />We will be representing you only with respect to the Litigation and in no other matters unless specifically agreed to in a <br />written agreement signed by you and us. Daniel McHugh, City Attorney, has the authority to delegate the Litigation to us, and <br />we will direct communications solely to that person, unless you tell us otherwise in writing. <br />B. Our Legal Advice <br />While we will endeavor to provide you with sound legal advice, it is very difficult to predict the outcome of legal matters, <br />particularly litigation matters. Therefore, nothing in this Agreement or in our communications with you will constitute a promise <br />or guarantee as to the outcome of the Litigation, but only expressions of our professional judgment. <br />You understand that we cannot and do not guarantee an ultimate victory or favorable settlement, but only that we will <br />use our best judgment at the time and that we will vigorously represent you. Similarly, if, in connection with or in preparation for <br />the Litigation, we advise you with regard to the validity, scope or infringement of intellectual property rights, our advice is not a <br />prediction; it is only our judgment as to likely consequences. <br />C. Insurance Coverage for Our Legal Fees and Costs <br />You promptly and carefully will review all insurance coverage that you may have to determine whether a <br />portion of our legal fees may be reimbursable to you by your insurance carrier. If your insurance coverage does apply, <br />you would remain responsible for timely payment of all invoices in accordance with the terms provided herein, but we <br />will accept payments directly from your insurance carrier and you consent thereto. You would be responsible for <br />payment of any difference between insurance payments and our invoices. Because we are not insurance coverage <br />specialists, you should obtain legal advice from an insurance attorney with respect to insurance coverage, so that a <br />prompt tender of any claims can be made to any potential insurance carrier. <br />D. Termination of Relationship <br />The attorney -client relationship is one of mutual trust, confidence and respect. Thus, you retain the right to discharge <br />us as your counsel at any time for any reason. Likewise, we retain the right to cease representing you (except to the extent <br />limited by applicable law or rules of professional conduct), at any time for any reason, after giving you reasonable notice of our <br />decision to withdraw. Further, your failure to pay our invoices within sixty (60) days of receipt may result in our withdrawal from <br />LITRETAIN <br />Rev. 11111 -1- <br />