CHAPTER 11 QUARTERLY FEE INSTRUCTIONS Effective January 1, 2008 All chapter 11 cases are subject to the Chapter 11 Quarterly Fee. The fee must be paid to the Clerk, U.S. Bankruptcy Court for every quarter (including any fraction thereof), from the time the petition is filed until the date of entry of an order dismissing or converting the case or closing a confirmed case. The fee is applicable to each and every case commenced under chapter 11 regardless of whether the case has been administratively consolidated with any other case. Cases pending during even one day during a quarter will be required to pay the fee applicable to that entire quarter. The debtor is responsible for the prompt and full payment of this fee. The amount varies depending upon the dollar value of all disbursements made during the calendar quarter; however, a minimum fee of $325.00 is due each quarter even if no disbursements are made during the quarter. All quarterly fees must be paid before a chapter 11 plan can be confirmed. Section 1129(a)(12) of the Code states: "The Court shall confirm a plan only if all of the following requirements are met. All fees payable under section 1930, as determined by the court as the hearing on the confirmation of the plan, have been paid or the plan provides for the payment of all such fees on the effective date of the plan." Please make all checks payable to the "Clerk, U.S. Bankruptcy Court." The debtor's case number should be written on the face of the check. Direct all correspondence and questions regarding your account to the Office of the Bankruptcy Administrator. If any check is returned marked "Insufficient Funds", all future quarterly fee payments must be made by cashier's check, certified funds or postal money order. American LegalNet, Inc. www.FormsWorkFlow.com Quarterly Fee Schedule Effective for Fees after January 01, 2008 Quarterly Disbursements $0 to $14,999.99 $15,000 - $74,999.99 $75,000 - $149,999.99 $150,000 - $224,999.99 $225,000 - $299,999.99 $300,000 - $999,999.99 $1,000,000 - $1,999,999.99 $2,000,000 - $2,999,999.99 $3,000,000 - $4,999,999.99 > $5,000,000 $5,000,000 - $14,999,999.99 $15,000,000 - $29,999,999.99 >$30,000,000 or more Old Fee $250 $500 $750 $1,250 $1,500 $3,750 $5,000 $7,500 $8,000 $10,000 New Fee $325 $650 $975 $1,625 $1,950 $4,875 $6,500 $9,750 $10,400 Increase $75 $150 $225 $375 $450 $1,125 $1,500 $2,250 $2,400 Discontinued $13,000 $20,000 $30,000 New New New Quarter 1st Quarter Jan-Feb-Mar 2nd Quarter Apr-May-Jun 3rd Quarter Jul-Aug-Sep 4th Quarter Oct-Nov-Dec Quarterly Fee Due Dates Ending March 31 June 30 September 30 December 31 Due Date for Payment April 30 July 31 October 31 January 31 It is the debtor's independent responsibility to ensure these fees are paid on or before the due date. The debtor will receive no bill. Quarterly Fee Statements Fed. R. Bankr. P. 2015(a)(5) requires that a debtor-in-possession file with the Bankruptcy Court and transmit to the United States Bankruptcy Administrator a statement of disbursements made during a calendar quarter, the amount of quarterly fees owed and the amount of fees paid to the United States Bankruptcy Clerk. The Chapter 11 Quarterly Fee Statement (See Attached Exhibit "A") must be filed with the Bankruptcy Court and transmitted to the United States Bankruptcy Administrator on or before the last day of the month after the end of each calendar quarter. Even if a plan has been confirmed, this report must be timely submitted by all chapter 11 debtors until the case has been converted or dismissed. American LegalNet, Inc. www.FormsWorkFlow.com If you seek to voluntarily dismiss your case, you must tender a copy of the check, payable to the Clerk, U.S. Bankruptcy Court, representing payment of the quarterly fee together with a completed Chapter 11 Quarterly Fee Statement to the United States Bankruptcy Administrator prior to the hearing on dismissal. Failure to tender the quarterly fee may result in the United States Bankruptcy Administrator's opposing dismissal of the case and requesting its conversion to a chapter 7 liquidation. Collection Actions Please take notice that a chapter 11 debtor's failure to pay quarterly fees pursuant to 28 U.S.C. � 1930 has significant legal consequences. The United States Bankruptcy Administrator may move for dismissal or conversion of your chapter 11case. Additionally, please be advised that, pursuant to the Debt Collection Improvements Act of 1996, Public Law 104-134, Title III, �31001(I)(3)(A), 110 Stat. 1321365, codified at 31 U.S.C. �3701, the United States Bankruptcy Administrator may use the debtor's Taxpayer Identification Number("TIN") as reported by the debtor or debtor's counsel in connection with the chapter11 bankruptcy proceedings for the purpose of collecting and reporting on any delinquent debt, including chapter 11 quarterly fees. The United States Bankruptcy Administrator may provide the debtor's TIN to the Department of Treasury for its use in attempting to collect overdue debts. Treasury may take the following steps: (1) submit the debt to the Internal Revenue Service Offset Program so that the amount owed may be deducted from any payment made by the federal government to the debtor, including but not limited to tax refunds; (2) report the delinquency to credit reporting agencies; (3) send collection notices to the debtor; (4) engage private collection agencies to collect the debt, and (5) engage the United States Attorney's office to sue for collection. Collection costs will be added to the total amount of the debt. American LegalNet, Inc. www.FormsWorkFlow.com UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF NORTH CAROLINA IN RE: ) ) ) ) Debtor. Case No. B- - C- ) CHAPTER 11 QUARTERLY FEE STATEMENT Pursuant to Fed. R. Bankr. P. 2015(a)(5) FOR CALENDAR QUARTER ENDING___________________________, 20_____ DISBURSEMENTS* 1. Month ________________ ________________ ________________ Total Disbursements for Quarter 2. Quarterly Fee Owed Pursuant to 28 U.S.C. �1930(A)(6) Quarterly Fee Paid (Attach proof of payment) Amount of any Unpaid Fees (if any) Disbursements $ ___________________ $ ___________________ $ ___________________ $ ___________________ $ ___________________ $ ___________________ $ ____________________ 3. 4. I, ______________________________________, acting as the duly authorized agent for the Debtor-In-Possession (Trustee) (Plan Administrator) declare under penalty of perjury under the laws of the United States tha