<p><strong><span style="text-decoration: underline;"><span style="color: #000000;">SECTION TWO</span></span></strong></p>
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<p><strong>1. Lease and License</strong></p>
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<p>&nbsp;</p>
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<p>a. Initial term: </p>
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<p>5 years</p>
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<p>&nbsp;</p>
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<p>b. Application Fee:</p>
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<p>$500</p>
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<p>&nbsp;</p>
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<p>c. Signed non-compete and non-disclosure agreement </p>
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<p>(Must be completed before training can take place, or up-close viewing of the equipment is possible)</p>
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<p>&nbsp;</p>
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<p>d. Training fee (DustRam System processes and equipment maintenance)</p>
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<p>I. $1,800<br />(For 1 man systems NOT incorporating the large stand-up grinders. Includes 3 days of training)<br />II. $3,000 <br />(For 2-4-man systems incorporating the large stand-up grinders. Includes 5 days of training)</p>
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<p>&nbsp;</p>
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<p>e. Minimum cost for application, training, equipment lease and license: </p>
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<p>$30,000 (Plus tax, freight and CC fees)</p>
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<p>&nbsp;</p>
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<p>f. Insurance</p>
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<p>Full replacement value insurance must be maintained on the DustRam<sup>&reg;</sup> System equipment, naming DustRam, LLC as one of the insured.</p>
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<p>&nbsp;</p>
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<p>g. Renting/lending equipment</p>
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<p>DustRam<sup>&reg;</sup> System equipment cannot be loaned or rented to other individuals or companies</p>
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<p>&nbsp;</p>
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<p>h. Equipment packages</p>
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<p>A custom package will be produced, based upon your requirements. Please allow 6-8 weeks for production and a 2-week lead time to be placed into the manufacturing schedule. A 50% non-refundable deposit will be required.</p>
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<p>&nbsp;</p>
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<p>i. Grinding media</p>
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<p>Licensee must purchase grinding media from DustRam, LLC.</p>
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<p>&nbsp;</p>
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<p>j. Lease (based on 1-man system) includes:</p>
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<p>(5) Years of licensing<br />- License fees: Based on the amount of pieces contained in a minimum DustRam&reg; System<br />&nbsp;- Minimum DustRam&reg; System: 7 pieces at $100.00/each per year for 5 years<br />&nbsp;- Additional tooling: (Added at $100.00/each/per year for&nbsp; 5 years)</p>
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<p>(6) DustRam&reg; System Tooling: (6 different patent-pending pieces of DustRam<sup>&reg;</sup> equipment, to be described in further detail once the Non-Compete and NDA has been signed.)<br />- 100% unconditional 5-year warranty (Note: Cosmetic wear and tear is created under normal working conditions, which does not affect the performance of the equipment. Damage caused from non-work activities is exempt. For example: Being crushed by a vehicle is not covered, nor is being dropped from a moving vehicle or tall buildings. Note: The estimated working life of DustRam<sup>&reg;</sup> equipment is 20 years or longer)</p>
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<p>(1) DustRam modified vacuum: (You retain the vacuum at the end of the lease)<br />- Original manufacturer&rsquo;s warranty 1 year (DustRam, LLC doubles the warranty to 2 years. Note: Broken connector pins, solenoids, filters and switches are items to be replaced under maintenance. Note: These items have been included in the lease)</p>
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<p>(15) Filter kits: (Maintenance for the vacuum) (Total of 45 filters. The 3 vacuum filters are changed every 4 months)</p>
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<p>(15) Skirts 7&rdquo; grinder: (Maintenance for the shroud) (Allows a 4 month change interval if necessary)</p>
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<p>(15) Skirts: 4&rdquo; edger grinder: (Maintenance for the shroud (Allows a 4 month change interval if necessary)</p>
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<p>(1) 3&rdquo; x 12&rdquo; vacuum hose</p>
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<p>(1) Manifold</p>
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<p>(5) Amsoil lithium grease (For greasing the shaft of the chisel blade)</p>
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<p>(2) Aluminum adapters: (Used to attach the DustRam&reg; System shrouds to the grinder)</p>
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<p>(5) 15 amp fuses: (Maintenance for the vacuum)</p>
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<p>(5) 2 amp fuses: (Maintenance for the vacuum)</p>
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<p>(15) Pivot pins: (Maintenance for the vacuum) (For attaching the valve to the solenoid)</p>
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<p>(30) Retaining rings: (Maintenance for the vacuum) (Used on the pivot pins)</p>
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<p>(5) Solenoids: (Maintenance for the vacuum)</p>
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<p>(1) 2&rdquo; x 25&rsquo; static conductive hose</p>
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<p>(7) Spanner nuts: (Attaches the grinding media to the spindle nut)</p>
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<p>(7) Spindle nuts: (Attaches to the grinding media and spanner nut to the grinder)</p>
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<p>(8) Grinding wheels: (To be described in further detail once the Non-Compete and NDA has been signed)<br />- You will be provided an initial inventory of the correct combination of grinding media specifically required for the DustRam&reg; System. For 1 man systems, these wheels will last for a very long time. However, to ensure predictable results, replacement grinding media are required to be purchased from DustRam, LLC.</p>
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<p>&nbsp;</p>
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<p>k. Custom webpage on DustRam.com </p>
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<p>(Search Engine Optimized for your area with links to your website)</p>
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<p>&nbsp;</p>
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<p>l. At the term of the lease all the DustRam<sup>&reg;</sup> equipment (with the exception of the Vacuum, which you can keep) may be returned to DustRam, LLC and incur no further charges. At this point you no longer authorized to perform services or advertise as a DustRam&reg; System authorized contractor. You also have an option to renew your lease.</p>
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<p><strong>2. Lease and License Renewal</strong></p>
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<p>&nbsp;</p>
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<p>a. Renewal term: </p>
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<p>5 years</p>
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<p>&nbsp;</p>
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<p>b. Renewal notice:</p>
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<p>Will be sent out 90 days from the end of the prior lease term</p>
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<p>&nbsp;</p>
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<p>c. Application fee:</p>
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<p>N/A</p>
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<p>&nbsp;</p>
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<p>d. Training fee:</p>
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<p>N/A</p>
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<p>&nbsp;</p>
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<p>e. Minimum cost for lease and license: </p>
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<p>$4,000 (plus applicable taxes, freight and CC fees)</p>
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<p>&nbsp;</p>
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<p>f. Insurance</p>
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<p>Full replacement value insurance must be maintained on the DustRam<sup>&reg;</sup> System equipment, naming DustRam, LLC as one of the insured.</p>
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<p>&nbsp;</p>
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<p>g. Renting/lending equipment</p>
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<p>DustRam<sup>&reg;</sup> System equipment cannot be loaned or rented to other individuals or companies</p>
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<p>&nbsp;</p>
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<p>h. Must purchase grinding wheels from DustRam, LLC.</p>
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<p>&nbsp;</p>
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<p>i. 2-year renewal lease (Based on a 1-man system) includes:</p>
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<p>(2) Years of licensing<br />- Renewal license fees based on the amount of pieces contained in a minimum DustRam<sup>&reg;</sup> System<br />&nbsp;- Minimum DustRam<sup>&reg;</sup> System: 7 pieces at $100.00/each per year for 2 years.<br />&nbsp;- Additional equipment: (Added at $100.00/each/per year for 2 years)</p>
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<p>Renewal lease fees are based only on the current retail cost for normal maintenance items. Included in the renewal lease are:<br />- (1) Vacuum re-build kit: (The current vacuum is now 5 years old. The solenoids, valves and connector rods must be rebuilt before it can continue in service. A rebuild kit has been added to the renewal lease for $500.00/vacuum. Otherwise, the vacuum must be decommissioned)<br />- (6) Filter kits: (Maintenance for the vacuum) (Total of 18 filters. The 3 vacuum filters are changed every 4 months<br />- (6) Skirts: 7&rdquo; grinder (Maintenance for the shrouds) (Allows a 4 month change interval if necessary)<br />- (6) Skirts: 4&rdquo; edger grinder (Maintenance for the shrouds) (Allows a 4 month change interval if necessary)<br />- (2) Amsoil lithium grease (For greasing the shaft of the chisel blade)</p>
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<p>&nbsp;</p>
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<p>j. At the term of the lease, all the DustRam equipment (with the exception of the Vacuum, which you can keep) may be returned to DustRam, LLC with no further charges. At this point you no longer authorized to perform services or advertise as a DustRam<sup>&reg;</sup> System authorized contractor.</p>
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<p><strong>3. Area Restrictions</strong></p>
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<p>&nbsp;</p>
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<p>a. At this time, the DustRam&reg; equipment cannot be leased for operation within 150 miles of Phoenix, AZ.</p>
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<p><em>Exception 1:</em> Individual 1 man systems leased for the sole purpose of customer repairs, such as a floor installation warranty period, or for plumbers and electricians who might require a DustRam<sup>&reg;</sup> System to punch holes through concrete to access utilities.<br />- Multiple 1 man systems cannot be combined to do larger residential tear outs and/or for projects which produce revenue.<br /><br /><em>Exception 2</em>: DustRam<sup>&reg;</sup> System leased for commercial work only. (No residential work permitted)</p>
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<p><strong>4.Area Exclusivity</strong></p>
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<p>&nbsp;</p>
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<p>a. Available with 2+ man systems</p>
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<p>&nbsp;</p>
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<p>b. Based upon population<strong>&nbsp;</strong></p>
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<p>Metropolitan Areas<br />- 1 DustRam System per 750,000 in population. For example: The metropolitan area of New York is about 21 million people. This means 28 or more DustRam Systems would be needed to service the demand. If you started with one system and continued to build your systems as the demand increased, you would control the entire DustRam System market in your area. If you choose to stop growing your equipment, then other systems will be implemented to keep up with the growing demand.<br />- Once the wait for a DustRam System service becomes consistently 6 weeks or longer in your area, more equipment must be brought in to meet the demand. (if DustRam, LLC gets feedback there is an excessive wait for the service)</p>
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<p>&nbsp;</p>
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<p>c. Based upon proximity</p>
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<p>Rural or Suburban Areas<br />- 1 DustRam System per 75 mile radius.<br />- Once the wait for a DustRam System service becomes consistently 6 weeks or longer in your area, more equipment must be brought in to meet the demand. (if DustRam, LLC gets feedback there is an excessive wait for the service)</p>
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<p>&nbsp;</p>
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<p>d. Commercial/Residential Demand</p>
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<p>It is possible for a commercial system and a residential system to operate in the same areas, with 2 different Lessees and not compete against each other.<br />- Example: When the first system in an area is being introduced and the Lessee chooses only residential work and declines commercial work, then another system could be introduced to another Lessee to take care of the commercial demand. And vice versa.<br />- To control the entire commercial and residential market in their area, a Lessee would need to handle the demand for both markets.</p>
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<p><strong>5</strong>. <strong>All DustRam&reg; equipment is built in professional, state-of-the-art, aero-space machine shops, located in the USA, built to last and able to operate under extremely tough conditions</strong></p>
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<p><strong>6. Equipment such as the vacuums, vacuum hoses, manifolds, hand grinders, extension cords, chipping hammers, Rubbermaid&reg; buckets, plastic wands, etc., will be yours to keep at the end of the lease, IF they were included in the lease</strong></p>
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<p><strong>7.</strong> <strong>Any large walk behind grinders, whether a modified EDCO unit, or those custom built by DustRam, LLC remains the property of DustRam, LLC </strong></p>
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<p><strong>8.</strong> <strong>Equipment and supplies not included in the lease. These are necessary to complete the DustRam&reg; System process</strong></p>
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<p>&nbsp;</p>
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<p>(2) Bosch 11264EVS (Electronic Variable Speed chipping hammer)</p>
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<p>- This is the only chipping hammer designed to work with the DustRam<sup>&reg;</sup> attachment. Plan on buying at least 2 chipping hammers to start. This allows a backup chipping hammer in case one goes out, or gets too hot.<br />- Plumbers and electricians requiring continuous production should purchase a total of 3 chipping hammers. This allows each hammer to work for 20 minute, and then have up to 40 minutes of cool down time before operating again.</p>
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<p>&nbsp;</p>
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<p>(5) HS1915 SDSMax 2&rdquo; x 12&rdquo; tile chisels</p>
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<p>- Removing tile, porcelain, stone, and saltillo, a chisel blade will remove approximately 2500-7500 sq. ft. before becoming too short to use properly. The better the old flooring is bonded, the shorter will be the life of the chisel. When you are down to 2 chisels, order 5 more.</p>
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<p>&nbsp;</p>
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<p>(1) Bosch 1375A 4&frac12;&rdquo; angle grinder </p>
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<p>(Or its 4&rdquo; equivalent. Used for saw cutting grout)</p>
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<p>&nbsp;</p>
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<p>(1) 4&rdquo; Diamond cut-off wheel </p>
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<p>(Installed on 4&rdquo; - 4&frac12;&rdquo; angle grinder to saw cut grout)</p>
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<p>&nbsp;</p>
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<p>(1) DeWalt 7&rdquo; D28499X large angle grinder (15 Amp)</p>
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<p>&nbsp;</p>
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<p>(1) Makita 5&rdquo; 9565CV variable speed angle grinder (12 Amp)</p>
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<p>&nbsp;</p>
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<p>(2) 50&rsquo; extension cords, 10 gauge</p>
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<p>&nbsp;</p>
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<p>(1) Crain stair tool</p>
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<p>&nbsp;</p>
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<p>(1) Crain door hinge tool</p>
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<p>&nbsp;</p>
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<p>(1) Hammer</p>
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<p>&nbsp;</p>
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<p>(2) 14 in. Wet/dry vac floor tool/brush combo</p>
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<p>&nbsp;</p>
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<p>(2) 2-1/2 Angle brush</p>
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<p>&nbsp;</p>
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<p>(2) 2-1/2 in. Extension wand</p>
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<p>&nbsp;</p>
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<p>(1) Wide dustpan</p>
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<p>&nbsp;</p>
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<p>(1) Welding gloves</p>
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<p>&nbsp;</p>
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<p>(1) Safety hood (Full sized to protect entire face, not just eyes)</p>
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<p>&nbsp;</p>
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<p>(8) Packing blankets (For protecting cabinets, doors, countertops, etc. from chip damage)</p>
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<p>&nbsp;</p>
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<p>(50) 3&rsquo; x 4&rsquo; 6mil plastic bags</p>
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<p>&nbsp;</p>
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<p>(1) Duct tape (For sealing the 3&rsquo; x 4&rsquo; 6mil bags)</p>
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<p>&nbsp;</p>
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<p>(1) 2&rdquo; blue tape (For anchoring packing blankets, chip barriers and protecting aluminum door thresholds from damage)</p>
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<p>&nbsp;</p>
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<p>(1) Box of 12&rsquo; painter&rsquo;s plastic (For creating barriers against chips)</p>
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<p>&nbsp;</p>
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<p>(2) Rubbermaid 25 gallon buckets (Holds the 3&rsquo; x 4&rsquo; 6mil plastic bag for dumping the dust from the vacuum tank)</p>
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<p>&nbsp;</p>
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<p>(20) Rubbermaid 18 gallon buckets (Each bucket will hold about 15 sq. ft. of tile OR 10 sq. ft. of saltillo or stone)</p>
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<td width="18">&nbsp;</td>
<td width="349">&nbsp;</td>
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