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Billing Terms I. Acceptance of Project: receipt of customer's Purchase Order, a signed APCCO Proposal, or a fully executed customer's contract form, plus 30% down payment, is required for APCCO to proceed. ll. Progress Billings: progress invoices would be made monthly on net 30 day payment terms. III. Final Billing and Retention: after substantial completion of the project a final invoice would be presented on net 10 day payment terms, with 10%of the project cost being subject to retainage for 30 days from the completion of successful start-up and commissioning IV. Extension of Schedule: should the project's completion date be extended, and APCCO's shop and site costs associated with this extension result in an increase in costs,we will request a change order with documentation of cost increases. V. Change Orders: in case of any alteration, deviation from or addition to the above specifications a written change order is to be executed to the satisfaction of all parties involved prior to work proceeding. VI. Late Payments: will incur a 1.5% per month service charge. VII. Right to Lien: For all projects with contract amounts exceeding $5,000.00, APCCO will issue a preliminary lien notice upon the acceptance and startup of work of the project. General Notes& Inclusions VIII. Work Stoppage: failure to make required progress payments will result in 10-day notice of stoppage of work followed by stoppage of work. IX. All materials provided shall be installed in new(unless noted)and undamaged condition. All work shall be performed in a professional and workman-like manner in accordance with approved plans and specifications. X. All APCCO subcontractors to be licensed by the Contractors State License Board in the State of California for their respective trades and shall maintain proper insurance and furnish copies of Certificates to Owner upon request. Our workers are fully covered by workers compensation insurance. XI. This agreement is contingent upon strikes, accidents, or delays beyond our control. Owner will carry fire, tornado, and other necessary insurance. XII. All manufacturers'standard terms and warranties apply. XIII. All materials and workmanship by APCCO are warranted for(1)year against defects from the date of start-up and are subject to industry standard terms and conditions. APCCO's warranty covers all costs (labor, materials, freight, tax, etc.)to address warranty issues. XIV. This proposal and quotation is valid for 30 days and void thereafter. Sincerely, V , -2 Shon Martin Modesto Division Project Manager CC: Roy Iverson, Jim Helsel, Dawn Oxford This document also serves as acceptance of the scope, terms, conditions, attachments and drawings as of the proposal date. Once signed below as accepted, this proposal becomes a contract between the customer and APCCO. Please fax back to(209)578-1021 upon acceptance and mail a signed copy to our office in Modesto, California. Accepted by: , (title) Date: PO#: Page 3 of 3