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October 1, 2006 <br />Page 2 <br />You have requested the scope of our engagement be limited to Winstead's <br />preparation/planning, and administrative and legislative representation before the applicable <br />regulatory bodies and the Texas legislature. The scope of our engagement includes issues <br />contemplated as general municipal issues for cities in Texas or otherwise expressly enumerated <br />San Marcos municipal issues of importance. <br />Therefore, Winstead will not at this time undertake any other services with respect to the <br />representation. Extraordinary or special issues not originally contemplated as general municipal <br />issues for cities in Texas or otherwise expressly enumerated San Marcos municipal issues of <br />importance shall be considered separate from this contract. However, should you desire to <br />enlarge the scope of the engagement in the future, we are willing to discuss with you the terms <br />that would be applicable thereto. <br />We understand that at this point in time, Winstead's representation of you with respect to <br />these issues is exclusive and we will not provide services to any third party on these issues <br />without your prior consent. Finally, we understand that as an on-going condition of this <br />agreement, Winstead shall maintain proper registration as a lobbying firm under the laws of the <br />State of Texas and shall comply with all applicable laws and regulations, including, without <br />limitation, those relating to political contributions and gift giving. <br />Again, let me thank you for allowing Winstead to be of service to you in connection with <br />this engagement. If the provisions hereof meet with your approval, please so indicate by signing <br />and returning the original of this letter to me. A counterpart of this letter is enclosed for your <br />files. <br />Very truly yours, <br />WINSTEAD CONSULTING GROUP <br />~~ <br />B 1' <br />Jan .Carter <br />AGREED TO AND ACCEPTED: <br />Dan O' Leary <br />City of San Marcos <br />Dated: ~, I ~ ~ ~~ <br />