AZ vs. CA:09 California Exhibits, Vol. IX; Nos. 400-457

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__2__ Whereas, the best interests of the parties hereto require, and it is their desire, to compromise, adjust and settle all differences arising under Article III of said contract, and to avoid further controversy and litigation relating thereto: 1. Now, Therefore, in consideration of the premises, the District agrees to pay to the Department within thirty (30) days from the date hereof, the sum of Forty-eight Thousand Dollars ($48,000.00), and the City and Department agree that said sum shall be accepted by the Department in full satisfaction of all claims and charges against the District arising out of or under the provisions of Article III of the contract of May 7, 1935, hereinabove referred to. 2. It is further agreed that, in the event that the City and/or the Department shall recover to any extent in an action now pending in the Court of Claims of the United States, entitled "The City of Los Angeles, a municipal corporation, plaintiff, vs. United States of America, defendant," numbered 43541 in the files of the Court, the Department shall pay to the District an amount equal to one-half the net recovery from the United States. For purposes hereof, the term "net recovery" shall mean the amount recovered from the United States less the costs of litigation, including, but not limited to, a reasonable attorney's fee, excluding, however, any charges for services of attorneys and other personnel regularly employed by the City and/or the Department. 3. In the event that any action shall be instituted against the City and/or the Department, or against any officer or employee of either thereof, attacking the validity of the compromise and settlement evidenced by this contract,