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<br />(To be placed on Texas Client's letterhead) <br /> <br />(Date) <br /> <br />Patterson & Associates <br />301 Congress Avenue <br />Suite 570 <br />Austin, Texas 78701 <br /> <br />In accordance with the Texas State Securities Board regulations we hereby acknowledge <br />the acceptance of Part" of Form ADV as part of this Investment Advisory Agreement. <br /> <br />The regulations require that: <br />"The City acknowledges receipt of Part II of Form ADV, a disclosure statement containing <br />the equivalent information, or a disclosure statement containing at least the information <br />required by Schedule H of Form ADV if the City is entering into a wrap fee program <br />sponsored by the investment adviser. If the appropriate disclosure statement was not <br />delivered to the City at least 48 hours prior to the City entering into any written or oral <br />advisory contract with the investment adviser, then the City has the right to terminate the <br />contract without penalty within five business days after entering into the agreement. For <br />the purposes of this provision, a contract is considered entered into when all parties to the <br />contract have signed the contract, or in the case of an oral contract otherwise signified their <br />acceptance, any other provisions of this contract notwithstanding." <br /> <br />Acknowledgment by City <br /> <br />Larry D. Gilley, <br />City Manager <br /> <br />16 <br />