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<br /> SCOPE APPENDIX to
<br /> Engagement Letter dated: January 25, 2024
<br /> Between the City of Hugo, Minnesota and
<br /> Baker Tilly US, LLP
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<br />(Scopev20230309) Page SA - 14 | 18
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<br />COMPENSATION AND INVOICING
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<br />A. Compensation for services relating to debt obligations
<br />1. Fees for Services
<br />a) General obligation debt:
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<br />b) The foregoing schedule shall apply to the total Par amount as indicated in the Preliminary
<br />Official Statement or Terms of Offering.
<br />c) The foregoing schedule shall include BTMA's services through closing of a Debt Obligation. If
<br />BTMA performs post-closing services relative to a Debt Obligation, it shall be compensated for
<br />such services at the hourly rates set out in Section B herein.
<br />d) Non ad valorem supported debt and advance refundings, shall be compensated at 1.35 times
<br />the fee set out in paragraph 1.a. above.
<br />e) Debt Obligations dependent on successful referenda, including GO sales tax revenue, shall be
<br />compensated at 1.25 times the fee set out in paragraph 1.a. above.
<br />f) In the event it is necessary for BTMA to repeat Debt Obligation services because of events
<br />beyond BTMA's control, BTMA shall be compensated for such repetitive services at the hourly
<br />rates set in paragraph B herein. BTMA shall not be entitled to compensation under this section
<br />for failed referenda unless otherwise provided by agreement between the Client and BTMA.
<br />g) Fee schedule and billing rates are subject to change periodically due to changing requirements
<br />and economic conditions. Baker Tilly will notify Client thirty (30) days in advance of any change
<br />to fees. If Client does not dispute such change in fees within that thirty (30) day period, Client
<br />will be deemed to have accepted such change. The fees billed will be the fees in place at the
<br />time services are provided. Actual fees will be based upon experience of the staff assigned
<br />and the complexity of the engagement.
<br />h) BTMA's fees shall be payable as follows:
<br />(1) Except as specified elsewhere in this section, for a Debt Obligation, fees are due upon
<br />closing of the Debt Obligation, except that if the Debt Obligation is awarded but cannot be
<br />closed by reason of an error, act or omission of the Client, BTMA shall be paid the amount
<br />which it would have been due upon closing.
<br />(2) If an issuance is awarded and does not close for a reason that is beyond the control of the
<br />Client and without fault of the Client, then BTMA shall be compensated at one-half the
<br />amount which would have been due upon closing.
<br />(3) If a Client Debt Obligation is abandoned for any reason and BTMA is without fault for such
<br />abandonment, BTMA shall be paid a fee in the amount that would have been due if BTMA's
<br />services to the point of abandonment had been charged at the hourly rate set out in
<br />paragraph B herein however not more than the fee had the Debt Obligation been issued. A
<br />Debt Obligation shall be deemed abandoned upon notice by the Client to BTMA of
<br />abandonment or whenever the Client has taken no action with respect to the Debt Obligation
<br />for one year, whichever occurs first. Delay in the issuance of Debt Obligations resulting
<br />from failed authorization referenda shall not constitute abandonment unless otherwise
<br />provided by agreement between the Client and BTMA.
<br />(4) Fees for services provided in connection with a private placement are not contingent on the
<br />successful placement of the Debt Obligation.
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<br />Additional
<br />Base Fee Purposes Fee Total Par Total Fee
<br />Tier 1 - to 2,999,999.99 18,000$ 5,000$ Total Par of all purposes Base Fee + $5,000 for each addt'l purpose
<br />Tier 2 3,000,000.00 to 4,999,999.99 25,000$ 5,000$ Total Par of all purposes Base Fee + $5,000 for each addt'l purpose
<br />Tier 3 5,000,000.00 to 9,999,999.99 30,000$ 7,500$ Total Par of all purposes Base Fee + $7,500 for each addt'l purpose
<br />Tier 4 10,000,000.00 to 24,999,999.99 45,000$ 7,500$ Total Par of all purposes Base Fee + $7,500 for each addt'l purpose
<br />Tier 5 25,000,000.00 to 49,999,999.99 65,000$ 10,000$ Total Par of all purposes Base Fee + $10,000 for each addt'l purpose
<br />Tier 6 50,000,000.00 to 74,999,999.99 75,000$ 10,000$ Total Par of all purposes Base Fee + $10,000 for each addt'l purpose
<br />Tier 7 75,000,000.00 to 99,999,999.99 100,000$ 10,000$ Total Par of all purposes Base Fee + $10,000 for each addt'l purpose
<br />Par Amount
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