TERMS

1) ON SITE (at your facility) WILL BE BILLED AT "ON SITE" RATES FOR THE FULL DAY DUE TO TRAVEL TIME & MISSED OFFICE TIME ISSUES .

2) UNLESS ENGINEERING IS DONE ON SITE OR ON A CUSTOMER REQUIRED SCHEDULE, WORK HOURS WILL BE AGGRESSIVE & AT WILL UNLESS RESTRICTED BY THE CUSTOMER - SCHEDULE TIME FRAME TO COMPLETE PROJECTS WILL BE COMPRESSED TO THE EXTENT POSSIBLE BY ASSIGNED ENGINEER.

3) ALL ASSIGNED WORK PERFORMED WILL BE DOCUMENTED ON A "TIME LOG SHEET" & SUBMITTED WITH EACH INVOICE FOR APPROVAL BY CUSTOMER AUTHORIZED CONTACT.

4) ALL WORK WILL BE BILLED WEEKLY. INVOICE SUBMITTED TO CUSTOMER ON MONDAYS FOR ALL WORK DONE BETWEEN "MONDAY @12:00AM - through to the following - MONDAY @12:00AM".

5) BILL TO BE PAID WITHIN 15 DAYS (NET 15), WITH A 6% DISCOUNT IF PAID WITHIN 5 DAYS (6% - NET 5).

6) LPD, CORP. SUB-CONTRACTORS WILL BE BILLED AT THEIR "RATE + 15%". LPD, CORP. EMPLOYEES ARE PRIME / ALL OTHER CONTRACTORS ARE SUBS.

7) ANY RELATIONSHIP BETWEEN CUSTOMER & LUMAZON PRODUCT DEVELOPMENT CORPORATION ARE CONSIDERED AT WILL & MAY BE TERMINATED BY EITHER PARTY AT ANY TIME BY NOTICE "BOTH VERBAL or IN WRITING". BILLED HOURS WILL TERMINATE AT THAT TIME.

add for TRAVEL $70/hr (min 8hr) + Expenses rate/hr (min 8hr) + customary expenses (air fare/car rental/hotel)

NOTE: Additional drive time charge of $1.00/mile beyond 45 road miles, one way.

- ( CONTRACT ENGINEERING SERVICES - for Product & Process Development Projects that require refinement )

- ( EQUIPMENT QUOTATION - for Machines & Process Equipment / Fixtures / Tooling - under a well defined spec.)

- - ALL PROJECTS WILL BE IN FIVE (5) PHASES - 1) QUOTATION, 2) ENGINEERING, 3) PROCUREMENT, 4) FABRICATION, 5) DELIVERY

1) QUOTATION phase - (Off Site Rates) will consist of; preliminary hand and/or CAD models, full price quote, preliminary description, & phase/payment schedule - with GANTT Chart.

2) ENGINEERING phase - 50% at Start & 50% on Preliminary Approval (net 10), Preliminary Drawings & Models will be adequate to begin Phase 3.

3) PROCUREMENT phase - All purchase Parts & Materials are to be funded by Customer in real time as ordered or by Customer Funded Escrow Account (see contract details).

4) FABRICATION phase - 50% at Start & 50% on Final Inspection (net 10)

5) DELIVERY phase - Customer to pay shipping directly to shipper. Customer will make immediate inspection & not hold final payment due to facilities or other delays beyond the control of LPD, Corp. Complete Instructions & Maintenance requirements will be delivered with the equipment.

- - These are the general terms and the specific terms will be outlined in the quotation. These terms are negotiable as needed to satisfy special project requirements and particulars.

NOTE: Travel - generally meaning overnight & beyond reasonable driving distance