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<br />WINSTEAD CONSULTING GROUP <br /> <br />Introduction <br /> <br />Standard Terms of Engagement for Services <br /> <br />This statement contains the standard terms of our engagement. Unless modified in writing by mutual agreement, these terms will be <br />an integral part of the letter to which this statement is attached (collectively, "En2:a2:ement Letter"). Therefore, we ask that you <br />review this statement carefully and contact us promptly if you have any questions. We suggest that you retain a copy of the <br />Engagement Letter in your file. <br /> <br />Scope of Winstead's Representation <br /> <br />The scope of services we will provide is described in the <br />accompanying letter. Any questions that you have should be <br />addressed to us immediately. <br /> <br />We will at all times act on your behalf to the best of our ability. <br />Any expressions on our part concerning the outcome of the <br />representation are expressions of our best professional judgment, <br />but are not guarantees. Such expressions are necessarily limited <br />by our knowledge of the facts and are based on the state of the <br />situation at the time they are expressed. <br /> <br />It is our policy that the person or entity that we represent is the <br />person or entity that is identified in our Engagement Letter and <br />does not include any affiliates of such person or entity, unless <br />specifically referred to (i.e., if you are a corporation or <br />partnership, affiliates include any parents, subsidiaries, <br />employees, officers, directors, shareholders or partners of the <br />corporation or partnership, or commonly owned corporations or <br />partnerships~ or, if you are a trade association, affiliates includes <br />any melnbers of the trade association). <br /> <br />It is also our policy that relationship will be considered <br />tefiiiinatedupOh..Otif. completion.. of. any.. sef\1ices .that.Ybu..have <br />retained us to perform. If you later retain us to pertonn <br />additional services, our relationship will be revived subject to <br />these terms of engagement, as they may be supplemented at that <br />time. <br /> <br />You agree to cooperate fully with us and to promptly provide all <br />material information known or available to you relevant to our <br />representati on. <br /> <br />Potential Conflicts <br /> <br />You should be aware that we represent many other companies <br />and individuals. It is possible that during the time that we are <br />representing you, some of our present or future clients may <br />become involved in transactions or disputes with you. You agree <br />that we may continue to represent or may undertake in the future <br />to represent existing or new clients in any matter that is not <br />substantially related to our work for you even if the interests of <br />such clients in those other matters are directly adverse. We <br />agree, however, that your prospective consent to conflicting <br />representation contained in the preceding sentence shall not apply <br />in any instance where, as a result of our representation of you, we <br />have obtained proprietary or other confidential information of a <br />nonpublic nature, that, if knovv'n to such other client, could be <br />used in any such other matter by such client to your material <br />disadvantage. You should know that, in similar circumstances <br />with many of our other clients, we have asked for similar <br />agreements to preserve our ability to represent you. <br /> <br />You agree that our representation of you in this matter does not <br />give rise to a relationship between us and any of your affiliates, <br />unless specifically set forth herein. You also agree that during <br />the course of our representation of you, we will not be given any <br />confidential information regarding any of your affiliates unless <br />you believe it necessary to do so. In such circumstances, you <br />agree to identify such information as being confidential and <br />discuss your reasons for revealing it with us prior to disclosing <br />the information. Accordingly, in most instances, representation <br />of you in this matter will not give rise to any conflict of interest <br />in the event other clients are adverse to any of your affiliates. <br /> <br />Services We ExpresslvDo Not Provide to You <br /> <br />Winstead is a wholly-owned subsidiary of Winstead Sechrest & <br />Minick P.C. (Winstead Sechrest & Minick P.C. and Winstead <br />being hereinafter collectively referred to as the "Firm") and <br />members of the Firm are from time to time serving in elected or <br />appointed positions with various governmental or regulatory <br />bodies at the federal, state, county, municipal, or local level. <br />Such service could include, but is not limited to, service in the <br />United States Congress, the Texas Legislature, as a board <br />member of a State of Texas agency, board, or commission or the <br />e)(~cl1ti\f~~r(}nchor ~tat~,g()\f~fl1t11en t, as a county coml11ission er, <br />mayor, city council member, alderman, as a member of a <br />planning and/or zoning board in charge of land use and <br />entitlement issues, or a board of adjustment or variance. <br />Members of the Finn must discharge those duties without regard <br />to their employment or association with the Firm, and more <br />importantly, it would be a prohibited conflict of interest for theln <br />to give any special consideration, benefit, or access to you or any <br />other client of the Firm by virtue of your engagement of <br />Winstead in any capacity, including the actual lobbying of any <br />such governmental body or agency. Accordingly, you <br />acknowledge and confirm that this engagement of Winstead is <br />not in consideration for or in contemplation of any expected <br />benefit to be derived from the activities of such persons in elected <br />or appointed positions. <br /> <br />You also understand that in the course of such public service <br />these persons may be called upon to take positions, cast votes, <br />adopt rules and regulations or otherwise act in a manner adverse <br />to your actual or perceived business interests and you <br />acknowledge that such events are not conflicts of interest or <br />ethical violations of Winstead's duties to you as a client. You <br />further ackno\vledge that in the course of the Finn's engagement <br />by other clients expressly for lobbying any governmental body at <br />the federal, state, county, or municipal level we could be <br />advocating positions or attempting to achieve outcomes or results <br />for such clients that could adversely affect you or your industry <br />(often without our knowledge) and your engagement of Winstead <br />for the services contemplated herein does not, in and of itself, <br />create a conflict of interest or ethical violation by virtue of our <br /> <br />- 1 - <br />