MIME-Version: 1.0 Content-Location: file:///C:/E368AEED/chtr_typea_107605.htm.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" Audit Committee Charter


Audit Committee Charter


I. Audit Committee Purpose


The Audit Committee is appointed by the Board of Direc= tors to assist the Board in fulfilling its oversight responsibilities. The Audit Committee's primary duties and responsibilities are to:


Appoint the Company's independent auditors.

Oversee the Company's financial reporting process and systems of internal controls regarding finance, accounting, legal, and regulatory compliance.

Monitor the qualifications, independence, and performa= nce of the Company's independent auditors and internal auditing department. <= /o:p>

Provide an avenue of communication among the independe= nt auditors, management, the internal auditing department, and the Board of Directors.

The Audit Committee has the authority to conduct any investigation appropriate to fulfilling its responsibilities, and it has di= rect access to the independent auditors as well as anyone in the organization. T= he Audit Committee has the ability to retain, at the Company's expense, special legal, accounting, or other consultants or experts it deems necessary within the Audit Committee's scope of responsibilities.


The Audit Committee shall be directly responsible for appointing, determining funding for, and overseeing the independent auditor= s in accordance with Section 301 of the Sarbanes-Oxley Act of 2002 (the "Act").


II. Audit Committee Composition and Meetings


Audit Committee members shall meet the requirements of= the NASDAQ Stock Market (the "Nasdaq"). T= he Audit Committee shall be comprised of three or more directors, as determine= d by the Board, each of whom shall be independent, as= such term is defined in the Rules of the Nasdaq, fre= e from any relationship that would interfere with the exercise of his or her independent judgment. In order to maintain independent judgment, Audit Committee members are prohibited from receiving any consulting, advisory, or other compensatory fee from the Company, other than payment for board or committee service, and Audit Committee members are prohibited from owning 2= 0% or more of the Company's voting securities. All members of the Committee sh= all have a basic understanding of finance and accounting and be able to read and understand fundamental financial statements at the time of their appointmen= t, and at least one member of the Committee shall have accounting or related financial management expertise within the meaning of Rules of the Nasdaq (i.e., any of a variety of types of experience= that result in "financial sophistication").


Audit Committee members shall be appointed by the Boar= d. If an audit committee Chair is not designated or present, the members of the Committee may designate a Chair by majority vote of the Committee membershi= p.


The Committee shall meet at least four times annually,= or more frequently as circumstances dictate. The Audit Committee Chair shall approve an agenda in advance of each meeting. The Committee should meet privately in executive session at least annually with management, the direc= tor of the internal auditing department, the independent auditors, and as a committee to discuss any matters that the Committee or each of these groups= believe should be discussed. In addition, the Committe= e, or at least its Chair, should communicate with management and the independent auditors no less than quarterly to review the Company's financial statements and significant findings based upon the auditor's limited review procedures= . In addition, the Committee Chair or another member of the Committee selected thereby should review the Company's earnings releases with management and t= he independent auditors prior to their release.


III. Audit Committee Responsibilities and Duties =


Review Procedures


Review and reassess the adequacy of this Charter at le= ast annually. Submit the charter to the Board of Directors for approval. Have t= he charter published at least every three years in accordance with SEC regulations.

Review the Company's annual audited financial statemen= ts and unaudited interim financial statements prior to filing or distribution. Review should include discussion with management and independent auditors of significant issues regarding accounting principles including critical accounting policies, practices, and judgments (see Item = 10).

In consultation with the management, the independent auditors, and the internal auditors, consider the integrity of the Company's financial reporting processes and controls. Discuss significant financial r= isk exposures and the steps management has taken to monitor, control, and report such exposures. Review significant findings prepared by the independent aud= itors and the internal auditing department together with management's responses. =

Review with management and the independent auditors the Company's quarterly financial results prior to the release of earnings and/= or the Company's quarterly financial statements prior to filing or distributio= n of the Quarterly Report on Form 10-Q or of the Annual Report Form 10-K. Discuss any significant changes to the Company's accounting principles and any items required to be communicated by the independent auditors in accordance with AICPA SAS 61 (see Item 9). The Chair of the Committee may represent the ent= ire Audit Committee for purposes of this review.

Independent Auditors


The Audit Committee shall be directly responsible for = the appointment, compensation, oversight of the work, evaluation, and terminati= on of the independent auditors (subject, if applicable, to shareholder ratification). The independent auditors report directly to the Audit Commit= tee and the Audit Committee will be responsible for the resolution of any disagreements between management and the independent auditor regarding financial reporting. The Audit Committee shall also review the independence= of the auditors.

All auditing services and all non-audit services, whic= h are not prohibited by law, shall be pre-approved by the Audit Committee pursuan= t to such processes as are determined to be advisable.


Exception -- The pre-approval requirement set forth in= the first sentence above, shall not be applicable with respect to the provision= of non-audit services, if:


the aggregate amount of all such non-audit services pr= ovided to the Company constitutes not more than five percent of the total amount of revenues paid by the Company to its independent auditor during the calendar year in which the non-audit services are provided;

such services were not reco= gnized by the Company at the time of the engagement to be non-audit services; and =

such services are promptly = brought to the attention of the Committee and approved prior to the completion of t= he audit by the Committee or by one or more members of the Committee to whom authority to grant such approvals has been delegated by the Committee.

Delegation --The Committee may delegate to one or more designated members of the Committee the authority to grant required pre-approvals. The decisions of any member to whom authority is delegated u= nder this paragraph to pre-approve an activity under this subsection shall be presented to the full Committee at its next scheduled meeting.


The pre-approval policies and procedures will be discl= osed in the Company's proxy statements and annual reports in the manner directed= by the regulations of the SEC or the Rules of the Nasdaq, as applicable.

On an annual basis, review and discuss with the indepe= ndent auditors all significant relationships they have with the Company that could impair the auditors' independence. Consider whether the provision of any non-audit services by the independent auditors is compatible with maintaini= ng the auditor's independence.

Review the independent auditors' audit plan including discussions of audit scope, staffing, locations, reliance upon management, = and internal audit and general audit approach.

Prior to releasing the year-end audit, discuss the res= ults of the audit with the independent auditors. Discuss certain matters require= d to be communicated to audit committees in accordance with AICPA SAS 61 and obt= ain the written disclosures and the letter from the independent auditors requir= ed by Independence Standards Board Standard No. 1.

Consider the independent auditors' judgments about the quality and appropriateness of the Company's accounting principles as appli= ed in its financial reporting. Prior to releasing the year-end audit, obtain a report from the independent auditors containing (a) all critical accounting policies used by the Company, (b) alternative accounting treatments that ha= ve been discussed with management along with the potential ramifications of us= ing those alternatives, and (c) other written communications provided by the independent auditor to management, such as any management letter and schedu= le of unadjusted audit differences.

Require independent auditor partner (including both the audit partner having primary responsibility for the audit and the audit par= tner responsible for reviewing the audit) rotation for a period of no less than = five years after each such partner serves in this capacity for five years. =

Ensure no former upper level employees of the independ= ent auditor who could influence the independent auditor serve in an accounting = role or financial reporting oversight role of the Company, as such terms are def= ined by the regulation (i.e., one-year "cooling-off" period for hiring members of the audit engagement team of the independent auditor).

Inquire of the independent auditors whether any member= of the audit engagement team received bonuses or incentive compensation based = on the sale of non-audit products or services to the Company, which is prohibi= ted by the Act and the provisions of the Securities and Exchange Act of 1934, as amended (the "Exchange Act") and the regulations promulgated there under.

Review the audit engagement team to determine appropri= ate qualifications as well as to determine whether any members would be disqualified under the independence provisions of the Exchange Act and the regulations promulgated there under, including, but not limited to, Regulat= ion S-X.

Ensure that the Company provides the required proxy statement and annual report disclosure of the fees paid to the independent auditors.

Internal Audit Department


Review the annual internal audit plan and recommend any changes.

Review the activities, organizational structure, and qualifications of the internal audit department, at least annually.

Review the appointment, performance, and replacement o= f the senior internal audit executive.

Review significant reports prepared by the internal au= dit department together with management's response and follow-up to these repor= ts.

Other Audit Committee Responsibilities


Cause a report to be prepared annually to shareholders= as required by the Securities and Exchange Commission. The report must be incl= uded in the Company's annual proxy statement. The Audit Committee will also make= a specific recommendation, disclosed in the proxy statement, whether or not t= he Company's audited financial statements be included in the Company's annual report to shareholders.

Establish, with the assistance of management, procedur= es for the receipt, retention, and treatment of internal and external complaints received by the Company regarding accounting, internal accounting controls,= or auditing matters. In establishing such procedures, the Committee must provi= de for the ability of the Company's employees to submit by confidential, anony= mous submission any concerns regarding questionable accounting or auditing matte= rs.

Review and approve all related-party transactions (e.g. Company transactions with any director or executive officer of the Company = or any Company security holder with more than five percent of the voting securities, including immediate family members or associates or affiliates = of any of the above).

Perform any other activities consistent with this Char= ter, the Company's Articles of Incorporation and By-laws, and governing law, as = the Committee or the Board deems necessary or appropriate.

Maintain minutes of meetings and periodically report t= o the Board of Directors on significant results of the foregoing activities.

Amended January 26, 2006