STATEMENT OF INTENT AND UNDERSTANDING

                            DEVELOPMENT PROJECTS - NON ENGINEERED

CLIENT EXPECTATION

The client has the desire for a new, improved process or machine modification, in some cases stimulated by suggestions from MTJ's employee(s).

Many clients prefer to describe verbally their expectation, rather than provide detailed written specifications and / or drawings of their concept. This carries with it a risk of misunderstanding and / or omission.

MTJ Manufacturing Inc. - THE CONTRACTOR

MTJ is a millwright service with many years of collective experience. Exposure to mechanisms of different types often enables the millwright to perceive an idea about how a process may be accomplished, enhanced or otherwise achieved or improved.

MTJ will interpret the client's instructions, produce drawings or sketches as requested, then in good faith and to the best of its' trade abilities, expend labour and materials, on behalf of the client for which MTJ will receive payment.

Before a contract is let, the client is responsible to provide or agree to measurable acceptance criteria for the work. MTJ shall not be held liable for failure in this regard.

STATEMENT OF INTENT AND UNDERSTANDING

MTJ Manufacturing Inc. will to the best of its ability, produce a machine, device, mechanism or modification to meet the described intent of a client's need. MTJ will use its' millwrighting experience and the experience of its sub-contractors, to develop an idea. However, it is expressly understood that development is an iterative process and all modifications, amendments, enhancements and the like, will be to the client's account. Both parties have the right to stop the development at any time and request an accounting of current indebtedness.

Development may proceed in planned phases with client approval.

Each development or phase may be covered by a separate contract setting out the deliverables, terms and conditions but based on this statement of understanding.

Completion of a development project will be based on measurable acceptance criteria to be agreed between MTJ and the client. The project will be considered accepted as complete either, when the agreed criteria have been met or the project is ended or cancelled by the client.

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Last modified: 05/29/06.