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02-06-2006 GRIMSHAW & HARRING PROPOSAL FOR SCOPE OF LEGAL SERVICESGE21 msHAw & HARR.ING A PROFESSIONAL CORPORATION ATTORNEYS AT LAW SUITE 3800 WELLS FARGO CENTER 1700 LINCOLN STREET DENVER, COLORADO 80203-4538 TELEPHONE (303) 839-3800 TELECOPIER (303) 839-3838 W %VW-0 RIMS}GW fIARR1NG.COM Wayne B. Schroeder (303) 839-3810 February 6, 2006 Town of Avon c/o John W. Dunn John W. Duran & Associates, L.L.C. P.O. Box 7717 Avon, Colorado 81620 Re: Legal Services for the Town of Avon Dear John: TT V MERITAS LAW FIRMS WORLDWIDE wbs a-)grunshawhan•ing.com We are pleased that you have engaged our firm to assist your legal services to the Town of Avon. The purpose of this letter is to establish the scope of our services and our fee agreement. 1. Professional Undertalung: We are being engaged initially to assist you in connection with the amendment of a development agreement and at least one intergovernmental agreement to guide the development of the "Confluence Parcel." It is our firm's policy to obtain an engagement letter concerning individual matters which we undertake for each client. hi the event that we do not obtain an engagement letter from you for any subsequent representation that you request, then this letter agreement shall also be applicable to that representation. 2. Tees: Our fees for services rendered on your behalf will be based upon the hourly rates for the attorneys and legal assistants who do the work. Our schedule of hourly rates is based upon each individual's years of experience, specialization in training and practice, and level of professional attainment. I will be responsible for any water law work required for this matter. Gilbert F. McNeish will be responsible for any development/zoning law work required for this matter, and Matthew R. Dalton will be responsible for any special district work requested for this matter. Mr. McNeish's current hourly rate is $285.00 and Mr. Dalton's current hourly rate is $300.00. My current hourly rate is $300.00. Hourly charges for others in the firm currently range from $150.00 per hour to $325.00 per hour depending on which attorney is performing the services. Charges for work performed by the firm's legal assistants currently range from $120.00 per hour to $125.00 per hour. The hourly rates are revised each year to reflect the current cost of delivery of legal services. I will review all statements before they are sent to you in order to ensure that the amount charged is appropriate. Town of Avon February 6, 2006 Page 2 3. Costs: It is likely that we will be required to incur expenses on your behalf for items such as recording costs, filing fees, delivery charges, court reporters, hearing and deposition transcripts, photocopying, computerized legal research, long distance and mobile telephone calls, and travel, lodging and meals. To cover the cost of domestic long distance, domestic facsimiles, in-office copying, ordinary postage, and deliveries by in-house staff, we charge an administrative fee of 1.5% of the legal fees billed to you on a monthly basis. This administrative fee is in lieu of itemizing those particular expenses and may be adjusted from time to time. All other expenses will be separately itemized on the statements or, under some circumstances, bills from parties providing such services will be furnished directly to you for payment. 4. Billings: Our statements will be prepared and mailed about the fifth of each month and will reflect the services rendered by us through the end of the previous month. We expect payment promptly after each statement is rendered. If our bills are not paid within 30 days following the date of issuance, we reserve the right to charge a late charge on any past due bill at the rate of one and one-half percent (1 %z%) per month, and if collection is necessary, costs and attorney fees therefor. It is important to clearly establish the terms of our business relationship as well as our legal relationship at the beginning of our representation and we feel that prompt and full payment of all bills is an important element of maintaining that relationship. 5. Fee and Expense Deposit: We normally require a cost and expense deposit for expenses of $250.00, but will waive that deposit. We reserve the right to require an additional deposit should the anticipated expenses increase. Additionally, when we foresee that expenses on a matter will be substantial we may ask you to pay those expenses directly or to fluid them in advance. 6. Conflicts: We will not represent other persons or companies who have an actual and direct conflict with you but we may accept the representation of others whose general interests may be adverse to you. We will attempt to promptly advise you of any potential conflict and ask that you likewise advise us. 7. Privacy Notice: Generally, we are bound by the Colorado Rules of Professional Conduct to keep all information about you that comes into our possession during the course of our representation confidential, and unless otherwise required or permitted by law or the Rules, we may not disclose that information to non-affiliated third parties in the absence of your consent. To the extent that we represent you in financial activities we are also subject to federal and state privacy laws regarding the collection and exchange of nonpublic personal information about you. In addition to such information provided by you to us, we may collect ii-don-nation about you from other sources such as your representatives and affiliates, your consultants or retained professionals, or consumer reporting agencies. We maintain physical, electronic, and procedural measures to guard that information. However, it may be necessary in the course of Tovm of Avon February 6, 2006 Page 3 our representation to exchange information with, or provide information to third parties such as your consultants or advisors, any opposing or co-counsel, or agencies or jurisdictions before which we are to represent you. In doing so, we will take appropriate measures to keep all treatments and exchanges of your information within the requirements of the law and the Rules. 8. Termination: You will have the right to terminate our representation at any time. We will have the same right of termination (including termination for non-payment of fees and expenses), subject to an obligation to give reasonable notice. All fees incurred for services rendered through the date of termination, as well as all costs and expenses incurred by us on your behalf must be paid within 10 days following receipt of our final statement. Upon the conclusion of our services on this matter, whether because of termination or the completion of the work, we will not, thereafter, update you, nor shall we be responsible for legal matters as to which our services have not been specifically requested and confuzned, preferably in writing. 9. Mediation/Arbitration: If a dispute arises regarding our services or fees, either of us may seek non-binding mediation or binding arbitration upon such terns as we may then agree. If either of us requests arbitration, no court proceeding shall be pursued, except to enter judgment. 10. File Retention: Upon the conclusion of our services we will return your files to you, upon request, or we may destroy the files after notice to you. If the foregoing meets with your understanding of the professional relationship we have established, please sign the enclosed copy of this letter on your behalf and return it to me in the enclosed envelope. The most important point we want to make in this letter is that we will do our utmost to serve you effectively. We cannot guarantee the success of any given venture, but we will strive to represent your interests vigorously and efficiently. If there are any questions concerning the foregoing, or any questions in the future with regard to the manner in which this smatter is being handled by this office, please do not hesitate to contact me. Very truly yours, GRIMSHAW & IIARRhNG, A Professional Corporation Wayne B. Schroeder cc: Gilbert F. McNeish Matthew R. Dalton Town of Avon February 6, 2006 Page 4 Enclosures APPROVED AND AGREED TO: TOWN OF AVON by: Date: February 2006. GAl\WBSTLIL•NTS0eeltrs\TOWN OF AVON FEE LTRNvpd