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<br />128. <br /> <br />Cox &SMITH <br /> <br />INCORPORATED <br /> <br />ATTORNEYS <br /> <br />COUNSELORS <br /> <br />112 East Pecan Street <br />Suite 1800 <br />San Antonio, Texas 78205-1521 <br />(210) 554-5500 <br />Fax (210) 226-8395 <br />www.coxsmith.com <br /> <br />Writer's Direct Number <br />(210) 554-5448 <br /> <br />Writer's E-Mail Address <br />prbroder@coxsrnith.com <br /> <br />August 12,2004 <br /> <br />City of San Marcos <br />City Hall <br />630 E. Hopkins <br />San Marcos, Texas 78666 <br />Attn: Mr. Dan O'Leary, San Marcos City Manager <br /> <br />Dear Mr. O'Leary: <br /> <br />Thank you for the opportunity to be of service to City of San Marcos. We will <br />endeavor to provide the highest quality legal services in a responsive, efficient manner. <br />We would like to take a moment to clarify the terms and conditions of our representation. <br /> <br />Scope of Service <br /> <br />You have asked our firm to represent you as real estate counsel in connection with <br />the proposed development agreement and ancillary matters related to a transaction with <br />John Q. Hammons Hotels, Inc. to construct a hoteVconference center project in the City <br />of San Marcos. However, as you have separate "bond" counsel and municipal law <br />counsel for this project, it is our understanding that our engagement would not cover <br />aspects of the project which relate to those areas. In acting as your real estate counsel on <br />this matter we believe we can meet the requirements set forth in your letter of July 27, <br />2004 under the heading of "The City's Expectations". <br /> <br />You understand that we are not your general counsel and that our acceptance of <br />this engagement does not involve representing you or your interests in any matter other <br />than that described above. Furthermore, you understand that we do not have a continuing <br />obligation to advise you concerning subsequent legal developments that might have a <br />bearing on your affairs generally. After the completion of the matter as to which we are <br />representing you, we will not have a duty to advise you of subsequent legal developments <br />that might have a bearing on that matter. <br />