Agmt99 Desmond Marcello & Amste - Laserfiche WebLink

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Mr. Michael Chumh November 9, 1999 Page Two Based upon the nature and scope of this engagement, you should budget a fixed fee of $10,000 for goodwill and fixture and equipment budgetary estimates. We will complete this assignment within 30 days of your authorization to proceed. Phase II DM&A proposes to provide full narrative appraisal reports in triplicate of the improvements pertaining to the realty and movable equipment of each business located within the Franklin Street Plan. These reports will include an estimate of the fair market value in continued use and orderly liquidation value of all appropriate items and will be prepared in conformance with Article 3 of the California Code of Civil Procedure, §1263.205 and §1263.210. Compensation for losses in connection with movable personal property is included in the California Code of Regulations, Title 25, §6090 and §6092. Appraisal procedures will be guided by the Uniform Standards of Professional Appraisal Practice (USPAP). In preparing these comprehensive appraisals DM&A will perform the following: · Inspect each business; · Prepare an inventory of the improvements pertaining to the realty and movable equipment; · Coordinate appraisal activities with the real estate appraiser to avoid duplication of compensation; · Interview each business owner regarding the history, operation and tangible assets owned; · Perform thorough cost and valuation research; and · Utilize generally accepted valuation methodology to estimate the fair market value in continued use and orderly liquidation value of the appropriate items owned for each business. DM&A's fees are based upon standard hourly rates. The standard hourly rates for fixtures and equipment appraisal services is $125 to $180 per hour depending upon the appraiser assigned and functions performed. Rates for court preparation and testimony range from $175 to $250 per hour. Based upon the nature and scope of this assignment you should budget a fee not to exceed $45,000. Assuming we receive cooperation from the business owners and do not encounter any unforeseen valuation issues, we anticipate completion of this assignment within 90 days of your authorization to proceed.