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January 24, 2008 <br />Little Canada Engagement Letter <br />Page 5 of 6 <br />submitted for reimbursement with each month's billing statement without markup. <br />(c) Kelly & Fawcett, P.A. agrees to keep its billing rates stable for the next 2 years <br />following the execution of this agreement (calendar years 2008 and 2009). Following the <br />initial two -year period, Little Canada agrees to three percent (3 %) increases in the hourly <br />rates billed by Kelly & Fawcett, P.A., to be effective on January 1 of each adjusted year. <br />Kelly & Fawcett, P.A. agrees not to seek an adjustment in its billing rates for any year of <br />this contract unless it is charging other comparable municipalities rates equal to or greater <br />than the rate paid by Little Canada under this agreement. At the time of drafting this <br />agreement, Kelly & Fawcett, P.A. agrees that its contract with White Bear Township is a <br />comparable contract by which the firm's eligibility for programmed increases can be <br />measured. <br />Should either party determine that a "major change" in the terms and conditions of this <br />agreement has occurred (e.g. significant increase in criminal caseload, rise in costs <br />beyond inflation), the parties agree to meet to discuss re- negotiation of the agreement. <br />The party desiring re- negotiation shall notify the other party of the "major change" it <br />believes has occurred, and of its desire to re- negotiate, in writing. The parties will then <br />seek to meet and confer within 30 days of the notice. If a new agreement is not reached <br />in that time, the party which originally gave notice may submit the matter to an arbitrator <br />for binding arbitration. Both parties agree to participate in the selection of an arbitrator if <br />arbitration under this paragraph is requested. <br />(d) Any question or dispute relative to said billing statements must be tendered in writing <br />by Little Canada to the billing department of Kelly & Fawcett, P.A. within thirty (30) <br />days of receipt of said billing statement. Any written objection must specify the dollar <br />amount of the suspected error and a description/explanation of why an error is suspected. <br />Failure to object in writing within thirty (30) days shall constitute a waiver of any <br />objection to that billing statement. Little Canada further understands and acknowledges <br />that Kelly & Fawcett, P.A. is under no obligation to amend or modify said billing <br />statements except upon timely written objections from Little Canada or as provided under <br />the Minnesota Rules of Professional Conduct. <br />The parties agree that any unresolved dispute relative to said billing statements shall be <br />tendered to the Ramsey County Fee Arbitration Committee. Said arbitration of fee <br />dispute shall constitute binding arbitration upon both parties. <br />3. Termination, Prior to the expiration of this agreement's stated term in January, 2013, the <br />parties may terminate this agreement by mutual written consent. Should the parties require <br />arbitration of a dispute, either for a billing dispute or regarding a "major change," either party <br />may request that the arbitrator grant termination of the agreement as part of the arbitration <br />award. <br />5 <br />