| 1.   | Definition:  This      is a Time and Materials contract.  Client agrees to pay Logic      Product Development Company (hereafter “Logic”) for all services provided      to or on behalf of Client (the “Services”) at the hourly rates quoted      below and to reimburse Logic for materials purchased in the course of the      project with the Materials Acquisition fees as stated      below. |
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| 2.   | Estimated      Project Fees:  The estimated fees for this project are      based on Logic’s current understanding of the scope and assumptions listed      in the Technical Approach/Statement of Work document.  These      estimates represent Logic’s best effort at predicting the expense for the      project and may change during the course of the      project. |
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| 3.   | Authorization.  Client’s      endorsement of the terms and definition of scope under Project      Authorization will initiate the project.  Client’s purchase      order will be used by Logic Accounts Payable department to identify the      project during invoicing, but any inconsistent or supplemental terms or      conditions contained in Client’s purchase order or any other Client      document shall not become part of the contract between Logic and      Client. |
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| 4.   | Down      Payment. Logic requires payment in the amount of 25% of the      estimated price of the authorized phase or phases before beginning work on      a project (hereafter “Down Payment”).  The Down Payment will      apply to the final installments of progress  billing. |
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| 5.   | Payment      Terms.  For projects lasting more than thirty (30) days,      Logic will issue monthly progress billings with terms of Net thirty (30)      days.  Logic will send final billings immediately upon      conclusion of all projects for which it has received Client’s written      approval.  Accounts past forty-five (45) days will be charged a      0.75% finance fee for every fifteen (15) days over Net thirty (30)      days. |
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| 6.   | Project      Continuation.  Logic requires that accounts not exceed      the payment terms of Net thirty (30) days.  Accounts past thirty      (30) days will immediately be placed on hold and internal resources will      be reallocated until the account ispaid. |
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| 7.   | Project      Expenses. Project related expenses not itemized in this proposal      including, but not limited to, travel expenses and special materials must      be pre-approved by Client and are an added expense (collectively “Project      Expenses”).  Project materials will be billed at cost plus an      18% materials acquisition fee (hereafter “Project      Materials”).  Any required materials purchase over five thousand      ($5000.00) dollars will be immediately invoiced per the terms in paragraph      3. |
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| 8.   | Project      Variations.  The scope, structure, and estimated fees for      this proposal are based on our understanding of the project requirements      at the point of project initiation.  If project requirements or      assumptions change during project execution, Logic will provide the Client      with recommendations for project changes and associated cost      re-estimations. |
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| 9.   | Billing      Rates.  Billing rates quoted in this proposal are valid      for the duration of the proposed project.  Logic’s billing rates      are adjusted annually.  Project additions or modifications      adding to the expense of this proposal, occurring after January 1 of the      following year, may be subject to new rates.  Logic will inform      Client of any rate changes as part of the proposed project      additions. |
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| 10.   | Quote      Expiration.  The project estimates and schedules outlined      in this specific proposal are valid for thirty (30) days from the date of      the proposal.  Logic reserves the right to review and adjust      these estimates and schedules if client does not approve of the proposal      within thirty (30) days. |
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| 11.   | Termination.  Client      may cancel a project or put it on hold at anytime with a written notice to      Logic.  Client agrees to pay Logic for all work performed, per      the terms of this Agreement, to the date that the cancellation is      received. |
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| 12.   | Termination      Fee.  If      a project is cancelled [or put on hold] by the Client pursuant to the      terms of Section 11 above, then the Client shall pay to Logic a      termination fee (a “Termination Fee”) in an amount equal $8000. This      is in addition to the cost of any work already preformed to date. The      Termination Fee shall be payable by the Client to Logic within ten days      following the termination  date. |
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| 13.   | Sales      and Use Tax Fees.  Logic's design fees estimated in this      proposal do not include sales or use taxes.  Logic pays sales      and use tax on all goods and services that Logic purchases for the Client      and . |
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|                | and      will pass these taxes on during billing.  The Client agrees to      pay Logic for any sales and use taxes levied against Logic during or after      the project for services rendered or materials supplied to the Client by      Logic. |
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| 14.  |  Intellectual      Property Ownership. |
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| 1.   | Assignment      of Intellectual Property.  Following receipt of all      payments in full for all fees, Project Expenses, Project Materials, and      work product conceived, discovered, created, developed or reduced to      practice by Logic on behalf of Client in connection with all Services      provided to or on behalf of client, Logic will assign and transfer all      rights, title, and interest in and to all copyrightable material, notes,      records, drawings, designs, inventions, improvements, developments,      discoveries including any trade secrets, copyrights, patents, mask work      rights or other intellectual property rights relating thereto      (collectively, “Client Intellectual  Property”). |
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| 2.   | Excluded      Intellectual Property.  Client acknowledges that the      following shall not constitute Client Intellectual      Property:  (i) information, materials, notes, records, drawings,      designs, inventions, improvements, developments, discoveries and      information that was developed, owned by or licensed to Logic prior to the      execution of this Agreement; (ii) information that is publicly known or      becomes publicly known through no acts of Logic; and (iii) information,      materials, notes, records, drawings, designs, inventions, improvements,      developments, discoveries and information developed in whole or in part by      Logic that are unrelated to the Services provided by Logic      hereunder. |
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| 3.   | Further      Assurances.  Following receipt of all payments in full      for all amounts owed to Logic hereunder, Logic agrees to assist Client, or      its designee, at the Client’s expense, in every proper way to secure the      Client Intellectual Property in any and all countries, including the      disclosure to the Client of all pertinent information and data with      respect to all Client Intellectual Property, the execution of all      applications, specifications, oaths, assignments and all other instruments      that the Client may deem necessary in order to apply for and obtain such      rights and in order to assign and convey to the Client, its successors,      assigns and nominees the sole and exclusive right, title and interest in      and to all Client Intellectual Property.  Logic also agrees that      Logic’s obligation to execute or cause to be executed any such instrument      or papers shall continue after the termination of this      Agreement. |
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| 15.   | Confidentiality.  Logic      will take reasonable measures to maintain the confidentiality of Client's      product information as defined by the Client’s confidentiality      agreement.  Client acknowledges and agrees that the existence of      the relationship between Logic and Client is not confidential unless      otherwise instructed by the Client.  If the Client notifies      Logic in writing that the relationship with Logic is confidential, Logic      will only disclose the existence of such relationship with prior approval      of the Client. |
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| 16.   | Project      Disclosure.  Logic’s viability in the marketplace is      dependent upon the presentation of past work performed.  Logic      reserves the right to disclose and display the results of its work      developed on behalf of Client to the public as an example of Logic’s value      to the marketplace.  Logic will prepare |
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|    | such      marketing materials for review by Client and only release such materials      with Client approval, which shall not be unreasonably      withheld. |
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| 17.   | Indemnification.  Client agrees      to indemnify and hold harmless Logic from any costs, damages, attorney      fees, costs, or losses as a result of any claim arising out of the      Services performed or materials provided by Logic to or on behalf of      Client, except as provided in the following      sentence.  Logic agrees to indemnify and hold harmless Client      from any costs, damages, attorney fees, costs, or losses as a result of      any claim arising out of Logic’s gross negligence or professional      misconduct. |
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| 18.   | Employee      Solicitation.  Client      recognizes that Logic has a substantial investment in its intellectual      property and employees.  Client agrees that it will not directly      or indirectly solicit or accept services from Logic employees during the      term of this Agreement and for a period of one (1) year following either      the termination of this Agreement or receipt of final payment in full for      all the Services performed hereunder whichever is last to      occur.  Client acknowledges and agrees      that if it knowingly violates      the provisions of this Section 18, Logic will suffer irreparable harm      for which there is no adequate remedy at law, and Client therefore      consents to the issuance of any injunction or other equitable relief in      favor of Logic enjoining any violation of this      Agreement.  Client further agrees that if it violates this      Section 18, it will immediately pay Logic, as liquidated damages, an      amount equal to one (1) times the employee’s total annual compensation      current at the time the employee left their position at      Logic. |
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| 19.   | Service      Warranty; Limitations of Liability. Logic agrees that the Services      provided hereunder will be performed in a professional manner consistent      with the standards and practice prevailing in the respective field of      engineering to which the Client’s project relates.  EXCEPT FOR      THIS WARRANTY, LOGIC DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED,      INCLUDING, WITHOUT LIMITATION, WARRANTIES OF FITNESS FOR A PARTICULAR      PURPOSE OR MERCHANTABILITY.  Under no circumstances shall Logic      be responsible for indirect, incidental, consequential, special or      exemplary damages or lost profits of any kind.  Furthermore,      Client specifically agrees that Logic’s maximum liability for any claim by      Client arising out of the performance or non-performance of the Services      by Logic shall be limited to the design fees paid by Client to Logic for      Services prior to the time of assertion of any such      claim. |
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| 20.   | Survival.  In      the event of any termination or expiration of this Agreement,      (a) Client nonetheless remains obligated to pay for all fees, Project      Expenses, and other costs due Logic payable hereunder up through the date      of termination or expiration, and (b) Sections 14, 16, 17, 18,      19, 20, 21 and 26 shall nevertheless survive and remain in full force and      effect. |
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| 21.   | Governing      Law.  This Agreement will be governed in all respects by      the internal laws of the State of Minnesota (without regard to its      conflict of law principles), and each party consents to the exclusive      personal jurisdiction of and venue in the state and federal courts sitting      in Hennepin County,Minnesota. |
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| 22.   | Assignability.  Except      as otherwise provided in this Agreement, Logic may not sell, assign or      delegate any rights or obligations under this      Agreement. |
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| 23.   | Entire      Agreement.  This Agreement constitutes the entire      agreement between the parties with respect to the subject matter of this      Agreement and supersedes all prior written and oral agreements between the      parties regarding the subject matter of this    Agreement. |
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| 24.   | Headings.  Headings      are used in this Agreement for reference only and shall not be considered      when interpreting thisAgreement. |
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| 25.   | Notices.  Any      notice or other communication required or permitted by this Agreement to      be given to a party shall be in writing and shall be deemed given if      delivered personally or by commercial messenger or courier service, or      mailed by U.S. registered or certified mail (return receipt requested), or      sent via facsimile (with receipt of confirmation of complete transmission)      to the party at the party's address or facsimile number written below or      at such other address or facsimile number as the party may have previously      specified by like notice.  If by mail, delivery shall be deemed      effective three (3) business days after mailing in accordance with this      Section 22. |
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| 26.   | Attorneys’      Fees.  In any court action at law or equity that is      brought by one of the parties to this Agreement to enforce or interpret      the provisions of this Agreement, the prevailing party will be entitled to      reasonable attorneys’ fees, in addition to any other relief to which that      party may be entitled. |
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| 27.   | Severability.  If      any provision of this Agreement is found to be illegal or unenforceable,      the other provisions shall remain effective and enforceable to the      greatest extent permitted bylaw. |
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| Electrical      Tech                                       |   | $75/hr   |
|-----------------------------------------------------------------|--------|---------------|
| PCB Designer /      Associate Engineer                     |   | $85/hr   |
| Engineer I /      Designer I / Sr. PCB Designer:           |   | $105/hr  |
| Engineer II /      Designer II:                            |   | $115/hr  |
| Senior Engineer /      Designer:                      |   | $130/hr  |
| Principal Engineer /      Lead Designer     |   | $140/hr  |
|                                                            |   |          |
| Materials      Acquisition Fee                             |   | 18%      |