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INSTEAD ONSULTING GROUP October 1, 2006 :,~ •~ direct dlal: 512.370.2871 j Icarter@winstead. com Mr. Dan O'Leary City Manager City of San Marcos 630 East Hopkins San Marcos, Texas 78666 Re: Engagement of Winstead Consulting Group ("Winstead") by the City of San Marcos ("San Marcos"). Dear Dan: Thank you very much for contacting Winstead in connection with legislative representation during the 80th session of the Texas Legislature. As a matter of company policy, it is required that Winstead provide you with this engagement letter in order to set out the specific terms which will be applicable to the representation including the terms set forth in this letter and the Standard Terms of Engagement for Services ("Standard Terms of Enga e~") attached hereto (collectively, the "Engagement Letter"). Specifically, the following terms and provisions will apply to this engagement: Winstead will charge a fee of $5,000 a month beginning January 1, 2007 thru December 31, 200. ~n addition to the fee for services rendered described above, you will also be responsible for Winstead's regular expense charges in connection with the engagement, courier services and travel pre-approved by San Marcos. Expenses for legislative dinners, and other entertainment will not exceed a total of $500 for the year. This amount may be exceeded with the approval of the City Manager. Winstead will provide you a detailed statement for expenses on the earlier to occur of the conclusion of our engagement or as soon as possible following the end of each calendar month until such time as the engagement is completed. We will endeavor to deliver these statements to you on or about the 10th day of the month following the month in which the expenses were charged. Payment of the amount reflected on each statement is due upon your receipt thereof. SUITE ?100 PH 512 3~0 2898 ~ '~ ~ '~ lIIFJt[Y/ lxa.rhzyzgtora DC 401 CONGRESS AVENUE FAQ: 51? ;'0 2850 i ALiSTIN, TEXAS X8701 WINSTEADCG COM ~~