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 10 DAYS (NET 10), WITH A 5% DISCOUNT IF PAID WITHIN 5 DAYS (5% - 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 $85/hr (min 8hr) + Expenses rate/hr (min 8hr) + customary expenses (air fare/car rental/hotel/meals)

NOTE: Additional drive time charge of $2.00/mile beyond 40 road miles.

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

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

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

2) QUOTATION phase - (No Charge) will consist of; preliminary hand and/or CAD models, full price quote, preliminary description, & phase/payment schedule.

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

4) PROCUREMENT phase - All purchase Parts & Materials are to be funded by Customer in real time as ordered or by open PO acceptable to vendors.

5) FABRICATION phase - 50% at Start & 50% on Delivery at Customers Site (net 10)

6) 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.

7) 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