We appreciate the opportunity of working with you and advising you regarding your income taxes. To ensure a complete understanding between us regarding the personal income tax preparations services we will provide to you, we are submitting this explanatory engagement letter.

We will prepare your 2007 Federal and State income tax return from information you furnish us. We will not audit or independently verify the data you submit, although we may ask for clarification of some of the information. The law places the final responsibility for the tax returns on the taxpayers; therefore, it is imperative that you review the returns carefully before you sign and file them.

As a result of recent congressional action, the responsibilities of taxpayers and professional return preparers have increased significantly. Penalties for failure to satisfy these responsibilities can be substantial. It is our intent that all positions taken in your tax returns will have a reasonable basis, and be taken in good faith in accordance with the Internal Revenue Code. We cannot, however, assure that penalties will not be assessed by the IRS. Should penalties be assessed, they are your responsibility, unless they are due to errors on our part.

When signing the letter, you are representing that you have retained necessary written support and documentation as required by the tax laws and the Internal Revenue Service, including documentation for charitable contributions, travel and entertainment expenditures and records of business and personal use of "listed property", such as automobiles. Please note that no deduction is allowed for a charitable contribution of $250 or more unless a written acknowledgement is received from the charitable organization. A similar rule applies with respect to contributions in excess of $75 that are made partly as a contribution and partly for goods or services. If the Internal Revenue Service or any local taxing authority has disallowed any deductions you claimed on a prior tax return, please advise us of the details of such disallowance.

Our fee for these services will be based upon the amount of required time, billed at our standard billing rates, plus charges for computer processing and out-of-pocket costs, if any. Invoices are due and payable upon presentation.

We appreciate the opportunity to serve you and look forward to a continuing relationship. If this letter sets forth your understanding of the services to be provided to you by Ryter & Company, P.C., please select the checkbox on the previous page.