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I will be responsible for assuring the overall quality, value, and timeliness of our services to you, and
<br />will lead the engagement.
<br />YOUR EXPECTATIONS
<br />a'
<br />As part of our planning process, we will discuss with you your expectations of Cherry, Bekaert &
<br />Holland, L,L.P., changes that occurred during the year, your views on risks facing you, any
<br />relationship issues with Cherry, Bekaert & Holland, L.L.P., and specific engagement arrangements
<br />and timing. Our service plan, which includes our audit plan, is designed to provide a foundation for
<br />an effective, efficient, and quality-focused approach to accomplish the engagement objectives and
<br />to meet or exceed your expectations. Our service plan will be reviewed with you periodically and will
<br />serve as a benchmark against which you will be able to measure our pertormance,
<br />TERMS AND CONDITIONS SUPPORTING FEE
<br />As a result of our planning process, the entity and Cheny, Bekaert & Holland, L.L.P. have agreed to
<br />a fee, subject to the following conditions.
<br />To facilitate meeting our mutual objectives, the entitywill provide in a timely manner audit schedules
<br />and supporting information, including timely communication of all significant accounting and financial
<br />reporting matters, as well as working space and clerical assistance as mutually agreed upon and as
<br />is normal and reasonable in the circumstances, When and if for any reason the entity is unable to
<br />provide such schedules, information and assistance, Cherry, Bekaert & Holland, L.L.P, and the
<br />entity will mutually revise the fee to reflect additional services, if any, required of us to achieve these
<br />objectives.
<br />In providing our services, we will consult with the entity with respect to matters of accounting,
<br />financial reporting, or other significant business issues. Accordingly, time necessary to effect a
<br />reasonable amount of such consultation is reflected in our fee. However, should a matter require
<br />research, consultation, or audit work beyond that amount, Cheny, Bekaert & Holland, L.LP. and the
<br />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, ourfees
<br />will be limited to those set forth below.
<br />FEE
<br />Financial Audit -Our fees for these services will be based upon our customary billing practices at
<br />the time of the engagement.. Bills for services will be rendered as work progresses and are due
<br />within 15 days from invoice date. A service charge will be added to past due accounts equal to 1'/%
<br />per month (18% annual rate) on the previous month's balance less payments received during the
<br />month, with a minimum charge of $2.00 per month. The fee for our audit as described in this letter
<br />will not exceed $17,500. This fee is based on anticipated cooperation from your personnel and the
<br />assumption that unexpected circumstances will not be encountered during the audit, If significant
<br />additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we
<br />incur the additional costs. Any modification to the fee shall be in writing and signed by both parties.
<br />You agree to pay all costs of collection (including reasonable attorneys' fees) that we may incur in
<br />connection with the collection of unpaid invoices.
<br />The fees setforth are based on auditing standards effective as of the date of this engagement letter
<br />and do not contemplate research and/or implementation of FIN46R, Consolidation of Variable
<br />Interest Entities, if applicable.
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