Agreement Regarding Accounting Method Revision and Financial Statement Restatement between SunTrust, Atlantic Financial, and The Rowe Companies
This letter agreement involves SunTrust, Atlantic Financial Group, and The Rowe Companies. SunTrust and Atlantic Financial agree to The Rowe Companies' plan to revise their accounting methods and restate financial statements for 2002–2004 and the first quarter of 2005. The agreement specifically acknowledges changes to capital expenditures and fixed charge coverage ratio requirements, aligning with SEC guidance on lease accounting. The Rowe Companies must follow these revised accounting practices as agreed, and the changes are recognized by all parties as consistent with regulatory interpretations.
Exhibit 10.4
[SUNTRUST LOGO APPEARS HERE]
April 15, 2005
Mr. Garry Angle
Vice President
The Rowe Companies
2121 Gardner Street
Elliston, VA 24087
Dear Garry
Per our conversation earlier today, we have no objection and are in agreement in concept with The Rowe Companies’ intention to revise their method of accounting and restate prior period financial statements for the fiscal years 2002 through 2004 as well as the first quarter of 2005. We understand and agree to the changes in Section 9.7.9 - Capital Expenditures and Section 9.3.1 - Consolidated Fixed Charge Coverage Ratio, as outlined in the letter from Fleet Capital to The Rowe Companies, dated April 14, 2005, that are in an effort by Rowe to be consistent with the interpretation of the SEC, as set forth in the SEC’s letter dated February 7, 2005 to the A1CPA regarding the appropriate accounting for leases.
Should you have any questions, please do not hesitate to call me at ###-###-####.
| Sincerely, | ||||
| /s/ Susan S. Still | /s/ Stephen S. Brookshire | |||
| Susan S. Still Senior Vice President Commercial Banking | Stephen S. Brookshire President Atlantic Financial Managers, Inc. General Partner of Atlantic Financial Group, Ltd. | |||
Acknowledged and Agreed:
The Rowe Companies
| /s/ Garry W. Angle |
| Garry W. Angle, Vice President—Treasury Management |
| and Assistant Secretary |
