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Arthur Andersen Contract Services Approach to Service Level Agreements Introduction Contractual agreements define in legal terms our relationship with a Contract Services client. These agreements define the services to be provided, pricing, client obligations, limits of liability and other contract terms. These agreements may include: * A Letter of Intent * An Interim Agreement * Model Services Agreement * Arrangement/Engagement Letter * Confidentiality Agreement * Change Order Request * Teaming Agreement Letter of Intent Letter of Intent is used when Arthur Andersen and the client have agreed to a Contract Services engagement. It demonstrates the commitment to proceed, and usually is accompanied by an initial deposit or fee. It is not, however, a binding contractual agreement. The Letter of Intent generally includes the following points: * Specifies major points of agreement (e.g., price, term and services). * Specifies in general terms, the activities to be completed before signing Contract Services contract. * Specifies the date by which an agreement will be reached. * Defines the conditions under which a portion of the fee or nonrefundable deposit may be returned. * Prohibits the client from soliciting other proposals. * Provides for confidentiality. (Mutual Nondisclosure Agreement) A written letter of intent reduces the opportunities for misunderstandings on key points and confirms the clients desire to proceed. It may be desirable to request a non-refundable deposit. Obtaining a nonrefundable deposit or to provide that the deposit will be applied to the fee if the contract is executed reinforces that commitment and provides some reimbursement for preparatory costs. It is our policy to obtain a letter of intent and nonrefundable deposit in all situations. Exceptions to this policy may be made by the OMP or division head after consultation with the Firmwide Contract Services Service Line Director. It must be noted that although the letter of intent i