EXHIBIT 10.9
Contract Agreement between Ingen Technologies, Inc. and Lifetime Controls, Inc.
[INGEN LOGO]
INGEN TECHNOLOGIES, INC.
CONTRACTOR AGREEMENT
This is a Work for Hire agreement between INGEN TECHNOLOGIES, INC having its
principal office at 000 Xxxx Xxxxxx Xxxx Xxxx Xxxxxxxx, Xx 00000 (hereinafter
referred to as the "Company".), and Lifetime Controls Inc. whose local address
is 0000 Xxxxxxxx Xxxxxxx Xx., Xxxxxxxx, Xx 00000, (hereinafter referred to as
the "Contractor").
PURPOSE OF AGREEMENT
The purpose of this Agreement is to establish terms and conditions for services
performed by the Contractor for the Company, in support of the Company's
software and or hardware engineering needs.
SCOPE OF AGREEMENT
The Contractor will perform all items within Attachement-A and Attachment-B for
a total cost of $69,420 and within a four (4) month period commencing on August
1, 2005. This is a work for hire agreement. The Contractor shall perform the
work, which is specified in the attachment. This Agreement includes only the
items that are described in this agreement. Any other items must be agreed to in
writing by both parties as extensions to this agreement. A schedule is attached
to this agreement. Either party may propose changes to this agreement. If
changes affect the schedule more than 30 days, a new schedule may be negotiated
and agreed to in writing by both parties.
TERMS OF AGREEMENT
This Agreement begins on 7-15-2005. The Contractor agrees to deliver the items
specified in the attachments within four (4) months of the commencement date.
Either the Company or the Contractor may terminate this Agreement at any time,
only with cause, by giving the other party forty-eight (48) hours written notice
of termination. If termination is due to failure to perform, the other party has
7 working days to correct the failure. In the event of termination all
confidentiality, assignment of intellectual property and warranties remain in
effect unless termination of these is agreed in writing by the Company.
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COMPENSATION
The Company will advance 50% and/or $34,710.00 of the total amount of the
contract to the Contractor. Upon successful completion of the contract, the
Company will pay the remaining 50% and/or $34,710.00. Failure to complete this
Contract by the Contractor will result in the reimbursement of all monies paid
by the Company.
THE CONTRACTOR IS AN INDEPENDENT CONTRACTOR
The Contractor is an independent contractor and is not an agent or employee of
the Company. The Contractor will be responsible for determining the manner and
means of fulfilling the contract and for all legal requirements applicable to
independent contractors. The Contractor will maintain his or her own business
operation. Neither the Contractor nor the Company intends to establish an
employer-employee relationship and both parties agree that the Contractor is not
an employee for state or federal tax purposes.
CONFIDENTIALITY REQUIREMENT
The Contractor shall maintain as confidential and proprietary any information
that the Company so identifies and any information that can reasonably be
presumed to be such. This obligation shall cease when such information becomes
publicly available by the Company or rightful publication by others.
ASSIGNMENT OF INTELLECTUAL PROPERTY RIGHTS
All rights, title, and interest in any intellectual property (conceived either
individually or jointly), including any inventions, patents, trademarks, or
copyrights and which arise out of the Contractor's performance under this
Agreement, are the property of the Company. Works of authorship created by the
Contractor for the Company in the performance of this Agreement are the works
made for hire as defined under U.S. Copyright Law.
WARRANTY AND INDEMNIFICATION
The Contractor warrants that any work performed under this Agreement will be
original, will not have been previously published in whole or in part, and will
not have been previously assigned, licensed or otherwise encumbered. In
performance of its obligations under this Agreement, the Contractor shall to the
best of the Contractor's knowledge and ability avoid infringement of any patent,
copyright, or trademark, or the disclosure of any trade secret or other
confidential and proprietary property of any other third party. Even when
permission has been obtained from the affected third parties, the Contractor
agrees that it shall not knowingly furnish or use any such patented or
copyrighted information or any such mask work or trademarks in the performance
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of this Agreement, nor shall the Contractor knowingly use the trade secrets or
other confidential and proprietary information of the Contractor or others,
without the prior written consent of the Company.
The Contractor shall indemnify the Company in the event of an infringement
action by any third party against the Company arising out of the Contractor's
willful use of any patents, copyrights, trademarks, trade secrets, or other
confidential and proprietary information as determined by a court of competent
jurisdiction Contractor and Company grant each other mutual waivers of
incidental and consequential damages. In the event that a claim is unsuccessful,
Contractor shall incur no liability.
MISCELLANEOUS
The provisions of this Agreement shall be governed by the laws of the State of
California, and all dispute resolution proceedings shall take place in the
appropriate forum in California. All disputes and disagreements (except for
matters for which injunctive relief is sought pending arbitration) shall be
resolved by binding arbitration before a single arbitrator in California in
accordance with the Rules of the American Arbitration Association.
ATTACHMENTS
The Contractor shall perform the following software development, hardware design
and programming, product consulting and general support for the OxyAlert(TM)
pursuant to the attachments contained herein.
WARRANTY
All engineering work will be warranted for one year from end of engineering
phases. During that time, any engineering labor that was done incorrectly, or
was clearly not in compliance with agreed any/all written specification(s),
shall be corrected at no cost. This Agreement sets forth the entire
understanding of the parties.
Both parties have read this Agreement and all of the attachments hereof, and
thereby understand and accept all of the terms and conditions set forth herein.
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Xxxxx X. Sand, CEO Ingen Technologies, Inc. Date
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Xxxxx Xxxxxxx, President Lifetime Controls, Inc. Date
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ATTACHMENT-A
SCOPE OF WORK
INGEN STAND ALONE FIXED VALUE OXYGEN TANK LOW PRESSURE
DETECTION AND ALERT SYSTEM DESIGN
A. Fixed Value Stand Alone Tank Unit with:
1. Standard non rechargeable battery
2. Lights for normal operating, low battery, and alarm
3. Detection of removal for system shut down (based on ultra low
pressure)
4. Sounder to alert user of low pressure and low battery
5. Interfacing off the shelf pressure sensor
6. Integration of standard analog off the shelf gage
7. Modification of off the shelf plastic enclosure
8. PCB design, layout, and Gerber files (RF ready)
9. Integration of Gage, Sensor, PCB, and Enclosure
10. Support of production of first articles
11. Project management of process
12. Regular progress meetings
13. A four calendar month completion schedule (assuming no delays
beyond our control or those caused by others)
B. Ingen will be responsible for non engineering services and material to
include:
14. Tanks, regulators, devices to simulate pressure falling over a
short period to speed up development.
15. Any knowledge and hardware needed to facilitate engineering
groups understand of how to best interface to field devices
such as tanks & regulators.
16. One time non reoccurring engineering to make PCBs, enclosures,
and mechanical alterations to devices
17. Manufacturing costs for production level first articles
18. Parts and materials to produce first articles
19. Any expediting and or shipping needed to meet customer goals
in making first articles
[X] All costs incurred in section B will be with prior
knowledge and with prior approval by Ingen representative
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ATTACHMENT-B
OxyAlert Tank Unit with LED, Sounder, and Transmitter Block Diagram
[DIAGRAM APPEARS HERE]
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OXYALERT PROOF OF CONCEPT / PRODUCTION MODEL 6/23/2005
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ELECTRONIC ENGINEERING DESIGN COSTS
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1 TANK MODULE - ANALOG OF-THE -SHELF SENSOR - INTEGRATED ELECTRICAL MECHANICAL APPLICATION
RADIO TRANSMITTER READY - ELECTRONIC DESIGN ENGINEERING ENGINEERING ENGINEERING PHASE TOTAL
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Micro Research & Test 12 4
Battery Research & Test 6 8
Gage/Sensor Integration 4 8 8
Sounder Research & Test 6
1 line diagram 8 2
Mechanical drawings & Integration 20
Housing Design 12
Board size & Xxxxxxxxx Xxxxxx 0 0
Xxx Xxxxxx of PCB 12
PCB Trace Routing 20
Test of PCB Circuit & components (prototype) 16 4
Re work & Re-test 8 4
Stage & Initialize Micro 14
Wake up & Power Control 16
Battery Monitoring - Programming & Components 16
Sleep Design for Battery Power Reduction 16
Test Battery Consumption on circuit 8
Peizo Sounder Integration 2
Low Batt LED Integration 4
TO State LED for Tank Status Integration 6
Regulator/Filtering 6
Micro Programming (sounder, radio interface, static low pressure) 40
Alpha Test first production unit 8 8
Re-work & Re-test 8 4
Project meetings - 2 hours per meeting 2x per month - 6 months 12 0 12
Documentation 8
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HRS 218 72 76 366
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COST $28,340.00 $9,360.00 $9,880.00 $ 47,580.00
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ELECTRICAL MECHANICAL APPLICATION
2 RADIO & CIRCUIT AS PART OF STAND ALONE UNIT ENGINEERING ENGINEERING ENGINEERING PHASE TOTAL
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Choose Eval Units 8 16
Test Radios 8 8
Choose Micro
1 line Diagram 6 2
Board Layout 8 8
Cad Layout 8
PCB Routing 12
Test of PCB Circuit 8
Test Components 8
Antenna design 12
Range Test 8
Re work & Re-test 0 8
Micro Programming 16
Mechanical design & integration 4
Housing Design 4
Alpha Test 8 8
Re-work & Re-test
Documentation
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TOTAL 82 28 58 168
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COSTS $10,660.00 $3,640.00 $7,540.00 $ 21,840.00
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PROJECT TOTAL $ 69,420.00
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PRODUCTION COST
BUDGETARY ESTIMATES
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STAND ALONE TANK UNIT W/GAGE/ 500 PSI ESTIMATED NOT TO
Item # ANALOG SWITCH/RADIO PARTS COST EXCEED NRE
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1 Microcomputer $10.00 $0.00
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2 Battery TBD $6.00 $0.00
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3 Crystal $3.30 $0.00
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4 Tri-state LED $1.50 $0.00
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5 Low Battery LED $0.83 $0.00
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6 Peizo $5.00 $0.00
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8 Generic Gage with machining $15.00 $250.00
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9 Supporting Components $9.90 $0.00
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10 PCB $16.50 $200.00
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11 Enclosure $18.00 $300.00
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12 Assembly & Test $29.00 $850.00
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13 3rd party Radio Board $10.00 $250.00
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15 3rd Party Sensor $40.00 $1,000.00
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Estimated TOTAL per unit less than 50 units $165.03 $2,850.00
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Actual cost may vary - if costs exceed 15%
additional, Ingen approval will be required
ESTIMATED ENGINEERING TIME LINE
OXYALERT PROJECT TASK
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TANK UNIT 8/1 8/8 8/15 8/22 8/29 9/5 9/12 9/19 9/26 10/3 10/10 10/17 10/24 10/31 11/7 11/14 11/21 11/28
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Sensor Procurement X X
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Selecting Components X X
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Draw Shematic X
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Layout PCB X X
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Manufacture PCB X X
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Procure Components X X X
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Populate PCB X X
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Program Micro X X X
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Mechanical Design X
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Procure Enclosure X
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Design Enclosure X X
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Manufacture Enclosure X X X
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Test Assembly X X
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Re Program and Modify X X
System
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Final Test & Assembly X X
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DELIVERABLES
1. BATTERY OPERATED STAND ALONE OXYALERT WITH 500 PSI DETECTION,
OFF TANK SHUT DOWN, RF OUTPUT, LIGHTS AND ALERTS SOUNDS
2. RF DEMONSTRATION TO PC ACTING AS RECEIVER SHOWING DATA
TRANSMISSIONS FROM STAND ALONE UNIT
3. GERBER FILES
4. FIRMWARE CODE
5. MECHANICAL DRAWINGS
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