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We also anticipate that we will prepare entries to convert your cash based records to accrual based financial
<br />statements. However, management is responsible for the accrual adjustments. In your representation to us, you will
<br />be asked to acknowledge our role in this regard, and your review, approval, and responsibility for the accrual
<br />adjustments.
<br />Any additional services that you may request, and that we agree to provide, will be the subject of separate written
<br />arrangements. Should the entity wish to include or incorporate by reference these financial statements and our report
<br />thereon into any official statement or any other document related to the offering of debt securities at some future date,
<br />we would consider our consent to the inclusion of our report into another such document at that time. However, we
<br />are required by auditing standards generally accepted in the United States of America to perform certain procedures
<br />before we can give our permission as to the inclusion of our report into another such document. You agree that you
<br />will not include or incorporate by reference these financial statements and our report thereon into any other document
<br />without our prior written consent.
<br />I will be responsible for assuring the overall quality, value, and timeliness of our services to you, will lead the
<br />engagement.
<br />YOUR EXPECTATIONS
<br />As part of our planning process, we will discuss with you your expectations of Cherry, Bekaert & Holland, L.L.P.,
<br />changes that occurred during the year, your views on risks facing you, any relationship issues with Cherry, Bekaert &
<br />Holland, L.L.P., and specific engagement arrangements and timing. Our service plan, which includes our audit plan,
<br />is designed to provide a foundation for an effective, efficient, and quality-focused approach to accomplish the
<br />engagement objectives and to meet or exceed your expectations. Our service plan will be reviewed with you
<br />periodically and will. serve as a benchmark against which you will be able to measure our performance.
<br />TERMS AND CONDITIONS SUPPORTING FEE
<br />As a result of our planning process, the entity and Cherry, Bekaert & Holland, L.L.P. have agreed to a fee, subject to
<br />the following conditions.
<br />To facilitate meeting our mutual objectives, the entity will provide in a timely manner audit schedules and supporting
<br />information, including timely communication of all significant accounting and financial reporting matters, as well as
<br />working space and clerical assistance as mutually agreed upon and as is normal and reasonable in the
<br />circumstances. When and if for any reason the entity is unable to provide such schedules, information and
<br />assistance, Cherry, Bekaert & Holland, L.L.P. and the entity will mutually revise the fee to reflect additional services, if
<br />any, required of us to achieve these objectives.
<br />In providing our services, we will consult with the entity with respect to matters of accounting, financial reporting, or
<br />other significant business issues. Accordingly, time necessary to effect a reasonable amount of such consultation is
<br />reflected in our fee. However, should a matter require research, consultation, or audit work beyond that amount,
<br />Cherry, Bekaert 8~ Holland, L.L.P. and the entity will agree to an appropriate revision in services and fee.
<br />Except for any changes in fees, which may result from the circumstances described above, our fees will be limited to
<br />those set forth below.
<br />FEE
<br />Financial Audit -Our fees for these services will be based upon our customary billing practices at the time of the
<br />engagement. Bills for services will be rendered as work progresses and are due within 15 days from invoice date. A
<br />service charge will be added to past due accounts equal to 1 1/2% per month (18% annual rate) on the previous
<br />month's balance less payments received during the month, with a minimum charge of $2.00 per month. The fee for
<br />our audit as described in this letter will not exceed the following:
<br />Base Charge for Audit $38,500
<br />Base Charge for Financial Statement Preparation $10,000
<br />Base Charge for Compliance Audit $19,000 (includes 8 major programs)
<br />Charge Per Single Audit Program for Additional Compliance Testing $2,000 per program
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