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Operator's needs to process its EPS packing material. This equipment shall carry a <br />Serial Number, to be assigned. In addition hereto, RecycleTech shall deliver, install and <br />setup the equipment at Operator's premises and shall train Operators personnel in the <br />adequate operation of the equipment at the Operators expense. <br />3. Delivery, Equipment and Services Price. RecycleTech shall deliver the unit on <br />or before October 31$', 2008 (or upon a mutually agreed upon date). Operator shall issue <br />a Purchase Order to RecycleTech in the total sum of $1,000.00 for the delivery and <br />installation, which are not covered by the grant, prior to the delivery/installation. FOB <br />Lakeland, Florida. (This contract excludes sales or use tax. It is the responsibility of the <br />purchaser to pay sales or use tax where applicable.) <br />4. Exclusivity. Throughout the term of this Agreement, Operator shall sell to <br />RecycleTech and RecycleTech shall purchase from Operator all of Operator's production <br />of Extruded EPS Material produced by Operator. <br />5. Extruded EPS Material Price and Other Obligations. RecycleTech shall pay <br />Operator $0.5 to .12 cents per pound for all Extruded EPS Material. Price depends upon <br />the cleanliness of the material. At the end of the term, RecycleTech will have the right of <br />first refusal for the purchase of the processed material for three years after the term of <br />the agreement. The following services are included by the Operator in exchange for the <br />agreed upon price per pound paid by RecycleTech: <br />a. Processing <br />b. Storage of Extruded EPS Material at Operator's premises and marking each <br />bag with a numerical sequential identifier such as IRC No. 001, etc. <br />c. Loading onto RecycleTech's supplied outgoing trucks at Operator's premises <br />d. Weighing <br />It is the responsibility of the operator to accurately weigh the total recycled EPS <br />that is loaded onto RecycleTech's supplied outgoing trucks and providing a bill <br />of lading. <br />Bags in containers for shipment of EPS. <br />All EPS should be placed in bags or containers that hold 1100 — 1600lbs. The <br />availability of bags varies, but a used bag, subject to availability, cost approximately <br />$4.00 used plus freight. <br />The foregoing $0.5 to .12 cents per pound of Extruded EPS Material price is <br />predicated on Operator producing clean EPS Material; however, if the EPS Material <br />produced by Operator is contaminated with debris (i.e, cardboard, poly -ethylene, metals, <br />general garbage, etc.), the price per pound shall be adjusted according to the quality of <br />the EPS Material produced. RecycleTech's obligation to purchase the output EPS <br />production shall not be affected by the quality of the EPS Material; only the price shall be <br />affected. RecycleTech's obligation pursuant to the foregoing shall be limited to picking up <br />full truck loads only. Less than full truckloads of containers may be delivered directly to <br />RecycleTech by the Operator. <br />Payment due to Operator pursuant to this paragraph shall be made on a net 30 <br />days basis from date of shipment. Any payments received by Operator after 30 days <br />from date of shipment, shall bear interest at the highest lawful rate. All payments due to <br />Operator shall be computed on the actual truck weight less tare and packaging. All <br />Extruded EPS Material shall be FOB Operator's premises/ warehouse. <br />Although this Agreement requires Operator to sell to RecycleTech all of its <br />Extruded EPS Material production, there shall be no obligation upon Operator to produce <br />any minimum quantity of Extruded EPS Material. <br />