Memo

October 12, 2011

Mr. James Frank

Pop Bottle Distribution Inc.

921 NW 43 St.

Gainesville, FL 32609

Dear Mr. James Frank:

It has come to my attention that your company, Pop Bottle Distribution, failed to pay its quarterly estimated tax payments during the past year. As a result, the company has been assessed a late penalty fee by the IRS in addition to still owing its calculated tax payment. It is my understanding that you believe our tax firm should pay both the estimated tax and the late penalty for your corporation, and a failure to do so will result in litigation. Below I will explain what our firm is willing to do in order to resolve the issues.

Pop Bottle Distribution has been a client of ours for more than two decades. Recently, the business relationship has suffered. There have been cooperation difficulties between our tax firm and the management of your organization. Also, there have been several instances that your firm has failed to provide the requested documents to appropriately complete your tax filing. Overall there has been a lack of sufficient communication the past couple of years. Most recently, your firm failed to recognize that it had received the vouchers our firm provided.

In order to prevent litigation and court costs, our firm is willing to pay the assessed late fee of $4500. However, we believe it is Pop Bottle Distribution’s responsibility to pay its taxes. Our firm is immediately sending over a legal copy of the vouchers sent to your company last April. We also believe it is time to discontinue our business relationship. At this time we feel both organizations would be better off moving into the future separately. I hope you accept our payment of the late fee and we can part ways amicably. If you have any questions please feel free to contact our office, and best of luck to you and your company in the future.

Sincerely