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877 Main Street, Suite 1000 P.O. Box 1617 Boise, Idaho 83701-1617 (208) 344-6000 · Fax (208) 342-3829 www.hteh.com TiMOTHY W. TYREE ADMITTED TO PRACTICE LAW IN IDAHO EMAIL: [EMAIL REDACTED] DIRECT DIAL: (208) 388-4873 VIA US MAIL City of Moscow Attention: Randy Fife P.O. Box 9203 Moscow, Idaho 83843 Re: Engagement Letter Dear Mr. Fife: June 3, 2003 We want to thank you for selecting Hawley Troxell Ennis & Hawley LLP to act as your attorneys in connection with 1912 Center. The following explanation sets forth the terms of our engagement as your attorneys and the manner in which we will handle the legal matters. The scope of our engagement for you is to represent you in connection with assisting in evaluating the options available to transfer all or a portion of the City's interest in 1912 Center and implementing the option selected. I am enclosing two originals of this letter along with a copy of the law firm's Client Service Policies. That statement of policies together with this letter will constitute our agreement covering our representation of you for the above described engagement. Please sign both originals and return one fully executed original to me. All of our time will be billed at the standard hourly rate for services rendered by the attorneys working on this matter. At the present time, the hourly rates for persons working on your file will range from $!85 to $245 for partners, $125 to $175 for associates and $90 to $125 for legal assistants. Our standard hourly rates customarily change as of January 1 of each year. The attorney primarily responsible for rendering legal services to you in this matter will be Timothy W. Tyree, whose current standard hourly rate is $150. Our statement to you will itemize the services rendered and will itemize all expenses and costs advanced which are posted during the month. The statement is due and payable in full upon receipt. If any statement remains unpaid more than 30 days after its receipt 2003-26 41743,0001.705411 '1 ---PAGE BREAK--- June 3, 2003 Page 2 by you, we reserve the right to withdraw from the matter as your attorney. Unpaid statements are subject to 12% per annum interest from the 31st day following the billing date until paid. If you have any questions or comments, or if anything in this letter is not agreeable, please contact me as soon as possible so that we can discuss the differences and attempt to reach terms and conditions that are mutually acceptable. Our firm is pleased to have the opportunity to represent you in this matter and look forward to a long and satisfactory professional relationship in your service. Very truly yours, I have read and understand the terms of our engagement as stated above and agree to be bound thereby. Date 41743.0001.705411_1 ---PAGE BREAK--- ATTORNEYS AT LAW CLIENT SERVICE 877 Main Street, Suite 1000 P.O. Box 1617 Boise, Idaho 83701-1617 (208) 344-6000 • Fax (208) 342-3829 www.hteh.com At Hawley Troxell Ennis & Hawley LLP, we maintain the firm's century-old tradition of professional excellence and integrity by providing every client with the highest quality legal service. Regardless of a client's size, business, or location, the services we provide are individually fashioned to meet each client's specific needs and wishes. We are aware of our clients' concerns for efficiency and economy and make every effort to keep costs down and consistent with proper representation. · The ideal client-attorney relationship requires a mutual understanding of expectations and an open line of communication. The following policies were developed with that objective in mind and with a commitment to hold the line on escalating legal costs. INITIAL CONFERENCE The client-attorney relationship generally begins with an initial conference. When scheduling this conference, you will be asked to provide information regarding potential parties involved in your situation so that we can ensure we have no conflict of interest with other clients or firm members. The purpose of this initial meeting is for your attorney to learn about your situation, and then to discuss with you the scope and amount of services that will need to be provided, who will provide those services, and the fees and costs involved. A fundamental principle in the client-attorney relationship is that the attorney maintains confidentiality of information relating to the representation. We encourage you to communicate fully and frankly with your attorney. ENGAGEMENT LETTER OR REPRESENTATION AGREEMENT The initial meeting will be followed by an engagement letter from your attorney that will outline the pertinent facts of the case, the scope of the representation, the fees to be charged, and the possible expenses to be incurred. RETAINER A retainer may be requested at the beginning or during the course of representation. This retainer will be used throughout the representation to pay for out-of-pocket costs and to pay current invoices. The balance, if any, of this retainer will be refunded to you when work is complete. Payment of a retainer does not relieve you of your obligation to make prompt payment of future invoices. Unless otherwise directed, all retainer funds are placed in an interest bearing client trust account. The interest on this account is donated, by law, to support public interest objectives of the Idaho Law Foundation.