FIRM NAME Certified Public Accountants
December 30, 2010 GRACE CORPORATION
m! "# National $i%&'a( Parian Calamba Cit(
Dear C)N*AC* PER+)N *&is 'ill confirm our understandin% of t&e arran%ements for our audit of t&e financial statements of GRACE CORPORATION, for t&e (ear endin% DECEMBER 30, 2010! -e 'ill 'ill audit audit t&e Com.an(/ Com.an(/ss balanc balancee s&eet s&eet as of DECEM DECEMER ER 30, 2010, and t&e relate related d statements of income, retained earnin%s, and es.eciall( cas& flo's for t&e (ear t&en ended, for t&e .ur.ose of e.ressin% an o.inion on t&em! *&e financial statements are t&e res.onsibilit( of t&e Com.an( Com.an( mana%emen mana%ement! t! )ur res.ons res.onsibi ibili lit( t( is to e.res e.resss an o.inion o.inion on t&e financi financial al statements based on our audit! -e 'ill conduct our audit in accordance accordance 'it& %enerall( %enerall( acce.ted auditin% auditin% standards! standards! *&ose standards reuire t&at 'e .lan and .erform t&e audit to obtain reasonable assurance about '&et&er t&e financial statements are free of material misstatement! misstatement! An audit includes eaminin%, eaminin%, on a test basis, eidence su..ortin% t&e amounts and disclosures disclosures in t&e financial statements! statements! An audit also includes assessin% t&e accountin% .rinci.les used and si%nificant estimates made b( mana%ement, as 'ell as ealuatin% t&e oerall financial statement statement .resentation! -e beliee t&at our audit 'ill .roide a reasonable basis for our o.inion! )ur .rocedures 'ill include tests of documentar( eidence su..ortin% t&e transactions recorded in t&e accounts, and direct confirmation of receiables and certain ot&er assets and liabilities b( corres.ondence 'it& selected customers, customers, creditors, le%al counsel, and ban4s! At t&e conclusion of our audit, audit, 'e 'ill 'ill reues reuestt certai certain n 'ritte 'ritten n re.res re.resent entati ations ons from from (ou about about t&e financi financial al statements and matters related t&ereto! Alt& Alt&ou ou%& %& t&e t&e audi auditt is desi desi%ne %ned d to .roi .roide de reas reasona onabl blee assu assura rance nce of detec detecti tin% n% erro errors rs and irre%ularities t&at are material to t&e financial statements, it is not desi%ned and cannot be relied u.on to disclose all fraud, fraud, defalcations, or ot&er irre%ularities! irre%ularities! $o'eer, 'e 'ill 'ill inform (ou (ou of an( material errors, and all irre%ularities or ille%al acts, unless t&e( are clearl( inconseuential, t&at come to our attention! If (ou intend to .ublis& or ot&er'ise re.roduce t&e financial statements and ma4e reference to our firm, (ou a%ree to .roide us 'it& .rinters/ .roofs or masters for our reie' and a..roal before .rintin%! 5ou 5ou also a%ree to .roide us 'it& a co.( of t&e final re.roduced material for our a..roal before it is distributed!
As .art of our en%a%ement for t&e (ear endin% DECEMER 30, 2010, 'e 'ill reie' t&e federal and state income ta returns for 6RACE C)RP)RA*I)N! Furt&er, 'e 'ill be aailable durin% t&e (ear to consult 'it& (ou on t&e ta effects of an( .ro.osed transactions or contem.lated c&an%es in business .olicies! Assistance to be su..lied b( (our .ersonnel, includin% t&e .re.aration of sc&edules and anal(ses of accounts, is described in a se.arate attac&ment! *imel( com.letion of t&is 'or4 'ill facilitate t&e com.letion of our audit! )ur fees 'ill be billed as 'or4 .ro%resses and are based on t&e amount of time reuired .lus out7 of7.oc4et e.enses! Inoices are .a(able u.on .resentation! -e 'ill notif( (ou immediatel( of an( circumstances 'e encounter t&at could si%nificantl( affect our initial estimate of total fees, '&ic& 'ill ran%e from P888888888 to P 88888888888! *&e 'or4in% .a.ers for t&is en%a%ement are t&e .ro.ert( of CARIN6A9, MA! ANA RI+*E9 and constitute confidential information! $o'eer, 'e ma( be reuested to ma4e certain 'or4in% .a.ers aailable to :REA: )F IN*ERNA9 RE;EN:E .ursuant to aut&orit( %ien to it b( la' or re%ulation! If reuested, access to suc& 'or4in% .a.ers 'ill be .roided under t&e su.erision of CARIN6A9, MA! ANA RI+*E9 .ersonnel! Furt&ermore, u.on reuest, 'e ma( .roide .&otoco.ies of selected 'or4in% .a.ers to :REA: )F IN*ERNA9 RE;EN:E! *&e :REA: )F IN*ERNA9 RE;EN:E ma( intend, or decide, to distribute t&e .&otoco.ies or information contained t&erein to ot&ers, includin% %oernmental a%encies! If t&is letter correctl( e.resses (our understandin%, .lease si%n t&e enclosed co.( '&ere indicated and return it to us! -e a..reciate t&e o..ortunit( to sere (ou and trust t&at our association 'ill be a lon% and .leasant one!
+incerel(, FIRM NAME 888888888888888888888888888888
