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HomeMy WebLinkAboutWRFC Minutes 2016-10-27 MINUTES OF REGULARLY SCHEDULED MEETING OF THE BOARD OF DIRECTORS OF WILMINGTON REGIONAL FILM COMMISSION,INC. A North Carolina Non-Profit Corporation The Wilmington Regional Film Commission, Inc. (WRFC) held a regularly scheduled meeting at 8:30 AM, on October 27, 2016. Chairman Hon. Beth Dawson, Hon. Bill Saffo, Ms. Carey Jones, Mr. Jimmy Smith, and Mr. William Vassar were present. In addition,Johnny Griffin and Kemmy Goodson,were also present. 1. APPROVAL OF MINUTES FROM MEETING ON MAY 24, 2016. The minutes from the Board Meeting on May 24, 2016, a copy of which is attached as EXHIBIT A,were unanimously approved. 2. PRESENTATION AND APPROVAL OF AUDIT OF FY 15-16 FINANCIAL STATEMENTS. Kemmy Goodson of Goodson & Taylor, CPA's, provided a brief overview of the FY 15-16 audit,which found no issues and all records in good order. The audit, a copy of which is attached as EXHIBIT B, was unanimously approved. 3. SELECTION OF AUDIT COMMITTEE.The new funding contract with the City of Wilmington stipulates that WRFC must have an audit committee. It was determined that the Audit Committee will be comprised of three members. Ms. Carey Jones, Mr. Jimmy Smith, and Mr.William Vassar were unanimously selected to be members of the Audit Committee for FY 16-17. 4. REVIEW OF NEW FUNDING CONTRACT WITH THE CITY OF WILMINGTON. Mr. Griffin provided an overview of the new funding contract with the City of Wilmington and highlighted differences with the previous funding contract. p5 1 5. DISCUSSION OF CONTRACT WITH FETZER STRATEGIC PARTNERS FOR LOBBYING SERVICES FOR 2017. Discussion was had regarding the proposed contract with Fetzer Strategic Partners for lobbying services for 2017. The Board directed Mr. Griffin to negotiate with Mr. Fetzer regarding the fee for his services during 2017. Mr. Griffin will follow up with the Board regarding the results of his discussion with Mr. Fetzer. 6. DISCUSSION ON DELAYING WRFC MEMBERSHIP RENEWALS UNTIL EARLY 2017. It was decided that due to the lack of current production activity, it is better to wait until early 2017 to pursue memberships in hopes of increased production activity in early 2017. Mr. Griffin informed the board that the interest in memberships is directly related to the amount of production activity within the region. With an anticipated continued decrease in production activity, Mr. Griffin expects a decrease in membership interest. 7. PRODUCTION UPDATE. Currently there are two productions in the region, which have been here previously and have returned for additional shooting. These two productions are: BOLDEN and GOOD BEHAVIOR. Otherwise, production interest is extremely low. Mr. Griffin is hopeful that the television series GOOD BEHAVIOR and SIX will return in early 2017 to began work on their second seasons. At this time,all indications are positive. 8. DISCUSSION OF WIMINGTON REGIONAL ECONOMIC SCORECARD SPONSORSHIP OPPORTUNITY. Mr. Griffin informed the board of an a ( opportunity to be a sponsor for the Wilmington Chamber of Commerce event, "Wilmington Regional Economic Scorecard". Mr. Griffin stated that the 2015 Scorecard listed the local Film Industry in the four takeaways of the report. In acknowledgement of the Chamber's continued support of the film industry,WRFC will purchase a sponsorship opportunity. { 9. RECOGNITION OF SERVICE OF CHAIRMAN BETH DAWSON. Hon. Bill Saffo expressed the board's appreciation to outgoing Chairman Beth Dawson for her years of service to and leadership of WRFC. There being no further business,the meeting was adjourned at 9:50 AM. Respectfully submitted ' Bill Saffo,Vice-Chairman ( ,Y ( yy9 ( {4{ r I F I= WILMINGTON BOARD OF DIRECTORS ,Chairman Honorable Beth Dawson,Chairman REGIONAL FILM COMMISSION, INC. Honorable Bill Saffo,�carcy tomes M1223 NORTH 23rd STREET • WILMINGTON,NG 28405 lames L.F.Smith T-4 1` www.wilmingfon•film.com commish�wilmington•Film.eom William Vassar BOARD OF DIRECTORS OF THE WILMINGTON REGIONAL FILM COMMISSION,INC. Agenda for Board Meeting October 27,2016 8:30 AM 1. Meeting called to order 8:31 AM 2. Approve minutes from May 24,2016 WRFC Board Meeting(Attachment A) 8:32 AM 3. Approval of FY 2015/2016 Audit of Financial Statements(Attachment B) 8:45 AM 4. Presentation on formation of Audit Committee as per City of Wilmington agreement 8:55 AM 5. Review of new funding contract with the City of Wilmington 9:05 AM 6. Approval of contract with Fetzer Strategic Partners for lobbying services for 2017 (Attachment C) 9:15 AM 7. Discussion on delaying WRFC membership renewals until 2017 9:20 AM 8. Production Update 9:25 AM 9. Old Business 9:30 AM 10. New Business 9:40 AM 11. Meeting Adjourned Member of afcl COMMISSIONERS TERNATIONA I 1 x � I I a WILMINGTON1 Carey Jonas,Chairperson William Vassar,Vieethaaman REGIONAL FILM COMMISSION,INC. Honorable Beth Dawson 1223 NORTH 23rd STREET • WILMINGTON,NC 28405 Honorable Sao I 4.Y www.wilmingtomJlm.com • commishewilmington.ilm.com James LF.Smih Attachment "A" z i Member of FILM ASSOCIATION OF afciINTERNATIONAL COMMISSIONERS 3 t i } MINUTES OF REGULAR BOARD MEETING OF THE BOARD OF DIRECTORS OF WILMINGTON REGIONAL FILM COMMISSION,INC. A North Carolina Non-Profit Corporation The Wilmington Regional Film Commission,Inc.(WRFC)held a regular meeting at 8:38 AM, on May 24, 2016. Chairman Hon. Beth Dawson, Hon. Bill Saffo, Ms. Carey Jones, Mr. Jimmy Smith,and Mr.William Vassar were present. In addition,Johnny Griffin,and Star News reporter Hunter Ingram,were also present. 1. APPROVAL OF MINUTES FROM MEETING ON JANUARY 12. 2016. The minutes from the Board Meeting on January 12,2016,a copy of which is attached as EXHIBIT A,were unanimously approved. 2. APPROVAL OF LETTER OF ENGAGEMENT FOR AUDIT OF FY 15-16 FINANCIAL STATEMENTS. The letter of engagement from auditor Kemmy Goodson for the audit of the FY 15-16 financial statements, a copy of which is attached as EXHIBIT B,was unanimously approved. 3. PRESENTATION OF MARKETING AND PROMOTION UPDATE. Johnny Griffin stated that the WRFC participated/will participate in the following events: • Sundance Film Festival—January 2016 • Locations Tradeshow—April 2016 • PGA Produced By Conference—June 2016 • LA Meetings—June 2016 4. PRODUCTION UPDATE. Johnny Griffin provided updates on the current productions. • GOOD BEHAVIOR—TV Series • SIX—TV series Johnny Griffin stated that there are currently no productions scheduled in the immediate future. -� I jf7 fi 5. APPROVAL OF BUDGET FOR FY 16-17. Johnny Griffin presented the proposed budget for FY 16-17,a copy of which is attached as EXHIBIT C. After review,the budget was adopted. 6. CLOSED SESSION. The board went into closed session to discuss a personnel matter. 7. RETURN TO OPEN SESSION. The board reported that no action was taken during the closed session. 8. EMPLOYEE BONUS. The board approved a one-time merit bonus for Johnny Griffin of$3,000 to be paid immediately. 9. NEW BUSINESS. Carey Jones presented an idea to the board about selling branded water bottles. Carey will gather more information and work with Johnny Griffin on this concept. There being no further business,the meeting was adjourned at 9:29 A.M. Respectfully submitted, Hon.Beth Dawson,Chairman 1 WILMINGTON Willem BOARD DIRECTORS h Vassar,ar,Chairman ti .. Carey Jones,Yrc.{hairp.non REGIONAL FILM COMMISSION,INC. Honorable is Bath Dawson 1223 NORTH 23rd STREET •WILMINGTON,NC 28405 HmoraW.till Salta 4 1.1 www.wilmington•film.com • commish @wlmington•Film.com James L.F.Smth Attachment`B" A 1 F Member of FILM afcl T RNATIONApNERB N ) ) ) } } _ } ) ) ) , WILMINGTON REGIONAL ) FlLM COMMISSION,INC ) } Financial Statements . l ) June 30,2016 and 2015 ) ] ) ) ] . \ � } I WILMINGTON REGIONAL FILM COMMISSION,INC. Table of Contents June 30,2016 and 2015 Independent Auditors'Report 1 Statement of Financial Position 2 Statement of Activities and Changes in Net Assets 3 Statement of Functional Expenses 4 Statement of Cash Flows 5 Notes to Financial Statements 6-9 Supplemental Information Budget to Actual Comparison of Support,Revenue and Expenses 11 1 1 33� yy V I Goodson & Taylor, CPAs y -"gm-:c x.a akin' air>... rn r .. BRIM! Clement Goodson,CPA 771 S.Kerr Ave. Lynn Taylor, CPA Wilmington,NC 28403 Independent Auditor's Report Voice 910.392.4650 Fax 910.392.3240 To the Board of Directors Wilmington Regional Film Commission,Inc. 1223 North 23 St. Wilmington,NC 28405 Report on the Financial Statements We have audited the accompanying financial statements of Wilmington Regional Film Commission,Inc., which comprise the statements of financial position as of Tune 30,2016 and June 30,2015 and the related statements of activities and changes in net position,statements of functional expenses,and cash flows for the years then ended,and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America;this includes the design,implementation,and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.The procedures to selected depend on the auditor's judgment,including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error.In making those risk assessments,the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.Accordingly,we express no such opinion.An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion,the financial statements referred to above present fairly,in all material respects,the financial position of Wilmington Regional Film Commission,Inc.as of June 30,2016 and 2015,and the statements of activities and changes in net position and cash flows for the years then ended,in accordance with accounting principles generally accepted in the United States of America. eAt Goodson&Taylor,CPAs September 28,2016 1 } WILMINGTON REGIONAL FILM COMMISSION,INC. • STATEMENT OF FINANCIAL POSITION June 30,2016 and 2015 2016 2015 Assets Current Assets Cash $ 310,901 $ 245,665 { Accounts Receivable 2,103 6,595 Prepaid Expenses 7,844 11,714 Total Current Assets 320,848 263,974 Fixed Assets Furnishings and Fixtures 5,240 5,240 Office Equipment 6,635 6,635 Display Booth 2,802 2,802 Cameras 2,064 2,064 16,741 16,741 Less Accumulated Depreciation (16,480) (16,078) Net Fixed Assets 261 663 Total Assets $ 321,109 $ 264,637 Liabilities and Net Position Current Liabilities Accounts Payable $ 7,680 $ 6,599 Accrued Vacation Pay 16,770 15,828 Total Current Liabilities 24,450 22,427 Net Position Unrestricted Net Position 296,659 242,210 Total Net Position 296,659 242,210 Total Liabilities and Net Position $ 321,109 $ 264,637 The accompanying notes are an integral part of this statement. 2 ?}}F WILMINGTON REGIONAL FILM COMMISSION,INC. STATEMENT OF ACTIVITIES June 30,2016 and 2015 2016 2015 Support and Revenue Governmental service agreements City of Wilmington $ 119,500 $ 117,502 New Hanover County 119,190 117,198 New Hanover County-Marketing 25,000 - Membership sales 36,325 41,439 Interest Income 76 59 Total Support and Revenue 300,091 276,198 Expense Program services 201,285 218,392 Management and General 25,798 29,961 Fund Raising 18,558 23,518 Total Expenses 245,642 271,871 Increase in Net Position 54,449 4,327 Net Position-Beginning of Year 242,210 237,883 Net Position-End of Year $ 296,659 $ 242,210 The accompanying notes are an integral part of this statement. 3 WILMINGTON REGIONAL FILM COMMISSION,INC. STATEMENT 01?FUNCTIONAL EXPENSES June 30,2016 and 2015 2016 Management Program and Total Total Services General Membership 2016 2015 Compensation and related expenses Compensation Director $ 80,556 $ 10,070 $ 10,070 $ 100,696 $ 99,271 Production coordinator 11,338 2,001 - 13,339 35,754 Scout salaries - - - 3,333 Employee benefits Retirement benefit 8,922 1,227 1,004 11,153 13,556 Payroll taxes 8,101 1,114 911 10,126 12,599 Health insurance 11,299 1,554 1,271 14,124 14,144 Total compensation and related expenses 120,216 15,965 13,256 149,438 178,657 Other expenses Membership Drive - - 884 884 2,465 Marketing and promotion 11,863 - 3,954 15,817 28,140 Software annual fees 13,200 - - 13,200 13,200 Rent 13,148 1,856 464 15,468 15,468 Accounting - 3,925 - 3,925 4,100 Vehicle rental and upkeep 2,593 1,728 - 4,321 5,300 Insurance 4,941 549 - 5,490 5,304 Copier rental&maintenance 2,568 - - 2,568 2,095 Telephone and postage 1,179 62 - 1,241 1,125 Travel and conferences 5,433 - - 5,433 10,222 Location scouting - - - - 407 Office expenses 200 200 - 400 1,103 Policy Board 1,449 1,448 - 2,897 1,892 Computer&website services 1,241 65 - 1,306 1,540 Contingency 100 - - 100 - Consulting 22,752 - - 22,752 Depreciation expense 402 - - 402 402 Equipment - - - - 451 Total Expenses ®$201,285 $ 25,798 $ 18,558 $245,642 $ 271,871 4 4 5 333 WILMINGTON REGIONAL FILM COMMISSION,INC. STATEMENT OF CASH FLOWS June 30,2016 and 2015 it 2016 2015 Cash Flows from Operating Activities Increase in Net Position $ 54,449 $ 4,327 Adjustments to Reconcile Net Assets to Net Cash Provided by Operating Activities Depreciation 402 402 (Increase)decrease in operating assets Accounts Receivable 4,492 (1,775) Prepaid expenses 3,870 (142) Increase(decrease)in operating liabilities Accrued expenses 2,023 3,331 Net Cash Provided by Operating Activities 65,236 6,143 Net Increase in Cash and Cash Equivalents 65,236 6,143 Beginning Cash and Cash Equivalents 245,665 239,522 Ending Cash and Cash Equivalents $ 310,901 $ 245,665 Supplemental Information Interest Income $ 76 s - 4 : The accompanying notes are an integral part of this statement 5 } i WILMINGTON REGIONAL FILM COMMISSION,INC. NOTES TO FINANCIAL STATEMENTS For the year ended June 30,2016 Note 1 Nature of Activities Wilmington Regional Film Commission, Inc. (the Commission) is a North Carolina nonprofit corporation whose mission is to improve business conditions for the common interest of the film and video industry in southeastern North Carolina,act as a liaison between the film industry,local governments,and communities in order to attract and facilitate on-location film and video production in the area,and to increase film and video production taking place in southeastern North Carolina and increase the economic impact of the industry on the region. The Commission was established in May 1999. Three projects began production in southeastern North Carolina during the year ended June 30, 2016 and the Commission responded to over 52 requests for information. The 3 productions resulted in approximately $62,000,000 of revenue into the community through wages paid to local artisans, craftsmen, and trades people, and goods and services purchased locally. The efforts of the Commission and its staff were influencing factors in the decision to produce those films or other video productions in the area. The Commission is supported primarily through support from local governments and sales of advertising in publication of its annual Production Guide. Note 2 Significant Accounting Policies • Method of Accounting The financial statements of the Commission have been prepared utilizing the accrual basis of accounting and accordingly reflect all significant receivables,payables,and other liabilities. • Basis of Presentation Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards(SFAS) No. 117,Financial Statements of Not-for-Profit Organizations.Under SEAS No. 117,the Commission is required to report information regarding its financial position and activities according to three classes of net assets,unrestricted net assets,temporarily restricted net assets,and permanently restricted net assets. • Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures.Accordingly,actual results could differ from those estimates. 6 q 3 fi WILMINGTON REGIONAL FILM COMMISSION,INC. NOTES TO FINANCIAL STATEMENTS For the year ended June 30,2016 • Support and Revenue Contributions are generally available for unrestricted use in the year received unless specifically restricted by the donor.Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations that limit the use of the donated assets.When a donor restriction expires,that is,when a stipulated time restriction ends or purpose restriction is accomplished,temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. • Subsequent Events The Commission has evaluated its subsequent events(events occurring after June 30, 2016)through September 29,2016,which represents the date the financial statements were issued. • Income Taxes The Commission is a not-for-profit organization that is exempt from income taxes from activities directly related to its exempt purpose under Section 501(c)(6)of the Internal Revenue Code.However,profits relating to certain advertising activities of the Commission are subject to federal&North Carolina taxation.Tax liability for the fiscal years ended June 30,2016 and 2015 respectively was$0 and$0 as a result of these activities.Tax returns of the Commission maybe audited by the Internal Revenue Service and as of June 30,2016,the years open for audit are June 30,2016,2015,and 2014. •Property and Equipment Property and equipment are recorded at cost and depreciation is calculated on a straight line basis over the estimated useful lives of the assets.The Commission follows the practice of capitalizing all expenditures for equipment in excess of$500.Lesser amounts are typically expensed.Property and equipment as of June 30th consist of; 2016 2015 Furnishings and fixtures $ 5,240 $ 5,240 Office equipment 6,635 6,635 Display booth 2,802 2,802 Cameras 2,064 2,064 Less:Accumulated Depreciation (16,480) (16,078) Total Property and Equipment $ 261 $ 663 7 Ii WILMINGTON REGIONAL FILM COMMISSION,INC. NOTES TO FINANCIAL STATEMENTS For the year ended June 30,2016 Note 3 Concentrations The Commission received over 88%of its support from New Hanover County and the City of Wilmington during the year ended June 30,2016.A total of$263,690 and $234,700 was received from both the City and County combined during the years ended June 30,2016,and 2015,respectively. Note 4 SEP Retirement Plan The Commission has a simplified employee pension plan covering all full time employees.The Commission makes a contribution to the plan each year equal to 10%of all participants' compensation.Total expense for the year ended June 30,2016 and 2015, respectively was$11,153 and$13,556. Note 5 Operating Lease Commitments The Commission leases office space under an agreement expiring August 2015.This lease may be terminated by either the lessor or the Commission with ninety days notice. As of August 31,2015,the office lease has been renewed at an annual rate of$15,468 for the first year and the current lease term ends August 31,2016. The Commission also has a noncancelable operating lease for office equipment which expires April 2019.Both leases generally require the Commission to pay all costs such as taxes,maintenance,and insurance.Rental expense for the lease of the office equipment consisted of$2,568 and $2,095 for the years ended June 30,2016 and 2015 respectively. The Commission leases a vehicle for use by its staff.The lease agreement is a month-to month rental agreement which may be cancelled by either party with thirty days notice. Lease expense for the years ended June 30,2016 and 2015 respectively was$3,960 and $3,960. Future minimum lease payments under these operating leases that have remaining terms in excess of one year as of June 30,2016 are Year ending June 30: 2016 9,106 2017 - 2018 - 2019 - t 2020 - Total $ 9,106 7 3 8 } 5 WILMINGTON REGIONAL FILM COMMISSION,INC. NOTES TO FINANCIAL STATEMENTS For the year ended June 30,2016 Note 6 Government Service Contracts The Commission has service contract agreements with both the City of Wilmington and New Hanover County.The City contract started July,2016 and is for three years and provides 121,890 for each of the three years with no increases and may be terminated at any time.The current year amount paid by the City was$119,500.The County contract renews each year and cannot be terminated.The County contract amount is$90,000 with annual Consumer Price Index adjustment and paid the Commission$119,190 during the 3 current fiscal year.Both contracts require the Commission to work diligently to attract film and video production to the City and County,advise and work with each in regard to all matters pertaining to film production,and have a representative from each serving on the Commission's Board of Directors throughout the term of the contracts.The City and County each agreed to pay the Commission respectively,$121,890 and$90,000 a year for the life of the contracts with annual increases based on a Consumer Price Index adjustment. Note 7 Functional Allocations of Expenses The costs of providing the programs and activities have been summarized on a functional basis in the statement of activities.Accordingly,certain costs have been allocated among the programs and supporting services benefited. Note 8 Joint Costs of Activities The Commission achieves some of its mission and fund-raising goals through the online publication of a production guide which is a listing of various local service providers, artists,craftsmen,and technicians to the motion picture industry.Any company or individual associated with the film industry can purchase a membership for this service and access the related information which is available online to the subscribing members. In the year ended June 30,2016,membership fees generated income of$36,325.The direct costs associated with providing this service was$884. 9 1 Supplemental Information hg� } 10 { WILMINGTON REGIONAL FILM COMMISSION,INC. Budget to Actual Comparison for the year ended June 30, 2016 1 r Budget Support and Revenue Budget Actual Variance Governmental service agreements City of Wilmington $ 119,500 $ 119,500 $ - New Hanover County 119,190 119,190 - 1 New Hanover County-Marketing 25,000 25,000 - Memberships 50,000 36,325 (13,675) Interest Income 50 76 26 Reserve - - - Total Support and Revenue 313,740 300,091 (13,649) Compensation and related expenses Compensation Director 100,696 100,696 - Production coordinator 34,866 13,339 21,527 Employee benefits Retirement benefit 13,556 11,153 2,403 Payroll taxes 12,201 10,126 2,075 Health insurance 18,750 14,124 4,626 a Total compensation g and related expenses 180,069 149,438 30,631 Other expenses Membership drive 6,000 884 5,116 8 Marketing and promotion 35,000 15,817 19,183 Software annual fees 14,000 13,200 800 Rent 15,468 15,468 -1' Accounting 4,000 3,925 75 1 Vehicle rental and upkeep 4,500 4,321 179 t Insurance 5,400 5,490 (90) k Copier rental&maintenance 2,500 2,568 (68) a Telephone and postage 1,500 1,241 259 Travel and conferences 5,903 5,433 470 Location scouting 1,000 - 1,000 Office expenses 1,400 400 1,000 1 Policy Board 3,000 2,897 103 Computer&website services 1,500 1,306 194 I Equipment 500 - 500 Depreciation expense 402 (402) Consulting 25,000 22,752 2,248 Contingency 7,000 100 6,900 Total Expenses 313,740 245,642 68,098 k Increase in Net Position $ - $ 54,449 $ 54,449 M i 11 f Mf4f 9 ii A WILMINGTON BOARD OF DIRECTORS WRGam Vassar,Chairman J ,Viesed REGIONAL FILM COMMISSION,INC. Carey anos penon 1223 NORTH 23rd STREET • WILMINGTON,NC 28405 Honorable Bath Dawson Honorable NI Sao www.wilmington.Film.com • commish@wilmington-film.com James L.F.Smdh Attachment"C" 1 1 6 1 1 1 1 Member of afci ASSOCIATION OF FILM COMMISSIONERS INTERNATIONAL 1 1 FETZER STRATEGIC PARTNERS Minsk SWAM GY•GOTIP-XIKEXT FULA:EMU•SCRYLT RUC:Mal 210 North Person&meet Raleigh,NC 27601 October 5,2016 Johnny Griffin Wilmington Regional Film Commission,Inc. 1 1223 North 23 Street Wilmington NC 28405 Please consider this a letter of engagement between the Wilmington Regional Film Commission,Inc. and Fetzer Strategic Partners. Beginning January 1st 2017,FSP will represent the Wilmington Regional Film Commission,Inc. in the Executive and Legislative branches of government. FSP will work to build support for the Film/TV grant program within the Execute Branch and the General Assembly. FSP will work collaboratively with lobbyists engaged throughout the industry, particularly those working for Screen Gems,MPAA and the City of Wilmington. Our mission is to maintain funding for the grant program.If there are opportunities to increase funding,we will certainly avail ourselves of those opportunities. FSP's fee for the engagement will be$5000 per month.The engagement will run thru 1 December 31st 2017. Invoices will be sent on the first of each month and are payable by the fifteenth day of each month. Either party may terminate their engagement for any reason upon 30 days written notice. Tom Fetzer Wilmington Regional Film Commission,inc. 1