definiens: shall mean equipment sufficient to produce at acapacity of twelve million ( 12,000,000 ) units of SNAs per year ) . JJMI will ownthe Initial Capital Equipment ( product machinery, molds, fixtures, etc.)regardless of the physical location of the equipment . It is also contemplatedthat BIO - PLEXUS may retrofit certain capital equipment, already owned byBIO - PLEXUS, as part of the Development -6-<PAGE > 7Program . Title to such equipment shall be transferred to JJMI at an agreedamount not to exceed BIO - PLEXUS ' book value for the equipment as determinedusing generally accepted accounting principles consistently applied ( i.e., fulldepreciation ) . Expenditures for Initial Capital Equipment relating to the SNAsshall not exceed $ 1.8 million . It is contemplated by the parties that the entireDevelopment Program will be completed within one ( 1 ) year of execution . Delaysdue to FDA review times are not included in this one ( 1 ) year durationexpectation