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Ii. City desires and agrees to provide a legal defense of Guzman in the Lawsuits on the terms and conditions set forth herein. Now, therefore,for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged - including, without limitation, the recitals, the covenants, conditions, representations and warranties set forth in this Agreement - the parties hereto agree as follows: 1. Provision of Defense The City, at its sole discretion, will -select and pay for separate counsel to represent Guzman, in this matter on the condition that Guzman reasonably and in good faith cooperate: in the conduct of Guzman's defense with the City and understand that the City is reserving its rights pursuant to Section 3 of this Agreement. 2. Acknowledgements Guzman. acknowledges that he;, A. Has been advised by the City that his interests in the Lawsuits conflict or may conflict with those -of the City. B. Has received fi•orn City a fill disclosure of the facts pertaining to present and potential conflicts of interest; C. 'Has been advised by the City to seek independent counsel regarding this Agreement; and D, Consents to representation by counsel of City's: choosing in the Lawsuits under these circumstances. 3. Reservation of Ri¢hts A. Linde= California Government Code section 825.(a), the City reserves its rights not to pay any j udgment, compromise or settlement on behalf of Guzman until it is established that the injury complained of in the above -referenced action arose out of an act or omission occurring within tile scope of Guzman°s position and duties as a law enforcement officer employed by the City. B. Under California Government Code section 825.6.(a), if the City pays any portion of a judgment, compromise or settlement on behalf of Guzman in connection with the Lawsuits; the City reserves its right to seek indemnity for such payment fiom Guzman, unless Guzman establishes that the action complained of in the Lawsuits arose within the scope of Guzman's position and duties as an employee of the City and the City cannot establish that Guzman's actions were the result of actual fraud, corruption or actual malice. C. Under California Goverment Code section 825.2(b), if the City does, not pay any portion of a judgment; compromise or settlement on Guzman's behalf in correction with the. Lawsuits, Guzman may seek recovery of such amount.frorn City only if Guzman establishes that: (1) the act or omission upon which the claim or judgment is based occurred. within: the scope of