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Orange County, North Carolina <br />Page 3 <br />SUBPOENAS <br />In the event we are requested or authorized by you or required by government regulation, subpoena, or other <br />legal process to produce our working papers or our personnel as witnesses with respect to our engagement <br />for you; you will, so long as we are not a party to the proceeding in which the information is sought, <br />reimburse us for our professional time and expense, as well as the fees and expenses of our counsel, <br />incurred in responding to such a request. <br />OTHER MATTERS <br />If any dispute, controversy or claim arises in connection with the performance or breach of this agreement, <br />either party may, on written notice to the other party, request that the matter be mediated. Such mediation <br />would be conducted by a mediator appointed by and pursuant to the rules of the American Arbitration <br />Association (AAA) or such other neutral facilitator acceptable to both parties. Both parties would exert their <br />best efforts to discuss with each other in good faith their respective positions in an attempt to finally resolve <br />such dispute, controversy; or claim. <br />Client and accountant both agree that any dispute over fees charged by the accountant to the client will be <br />submitted for resolution by arbitration in accordance with the Rules for Professional Accounting and Related <br />Services Disputes of the AAA. Any award rendered by the Arbitrator pursuant to this Agreement may be <br />filled and entered and shall be enforceable in the Superior Court of the County in which the arbitration <br />proceeds. In agreeing to arbitration, we both acknowledge that, in event of a dispute over fees charge by <br />the accountant, each of us is giving up the right to have the dispute decided in a court of law before a judge <br />or jury and instead we are accepting the use of arbitration for resolution. <br />The prevailing party shall be entitled to an award of reasonable attorneys' fees and costs incurred in <br />connection with the arbitration of the dispute in an amount to be determined by the arbitrator. <br />If the foregoing is in accordance with your understanding, please sign a copy of this letter in the space <br />provided and return it to us. If you have any questions, please call Eddie Burke at (919) 782-1040. <br />Very truly yours, <br />CHERRY, BEKAERT & HOLLAND, L.L.P. <br />Raleigh, North Carolina <br />Enclosure <br />.RESPONSE: <br />This letter correctly sets forth the understanding of Orange County, North Carolina. <br />By: <br />Laura Blackmon, County Manager <br />