14901 Quorum Drive Suite 900 Dallas, TX 75254 Main (972) 991-5505 Fax (972) 960-2070

09 October 2003

Mr. Bert Sweeney North America Specialty Gas Equipment Product Manager PRAXAIR DISTRIBUTION, INC. 145 Shimersville Road Bethlehem, PA 18015 Dear Bert: Subject: Proposal for Underwriters Laboratories Project Installation of Stainless Steel Piping Systems Lockwood Greene Proposal No. DA-03-0126

As I recently discussed with you, we have prepared an estimate for the design, procurement, and installation of the stainless steel piping systems based on two sketches you provided for the Underwriters Laboratories Project. It is our recommendation that we work with BMW Inc., a nationally known mechanical contractor, in the execution of this work. (They are currently working in the area on another project.)

Exceptions, Assumptions and Exclusions

Exceptions None Taken Assumptions Lockwood Greene assumes the following: 1. A Builders Risk Policy is carried by either Praxair or the Owner, and Lockwood Greene and its subcontractors will be named to the Policy 2. Construction Permits, if any, will be provided by the Owner or Praxair 3. An Architect or other professional has reviewed the basic plan and Lockwood Greene is not required to perform a code review 4. The laboratory will be open and available for work during normal business hours, 7:00AM to 5:00PM, five days a week 5. Wall between Gas Room and Laboratory is a two-hour rated, dry wall structure. 6. Penetrations in the wall in number 4 will be sealed in accordance with walls rating 7. Actual floor to ceiling height (not including drop ceiling) is 10 feet 8. Actual floor to drop ceiling height is 8 feet 9. Locations of drops will not change from original documentation
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10. Praxair will provide all gas equipment (Regulators, Valves, Panels, Cylinder Restraints, Changeover Systems) and the contractor will install them 11. Extra lines will be run and capped for future use or determination 12. Valex Specification 301 will be used for material as it matches the general requirement of the request for bid. Changes in direction of tubing will be accomplished using high radius bent tubing. Tubing and end fittings are to be supplied by the contractor. 13. General Pressure Testing to Lockwood Greene specifications will be the only testing required on the system Exclusions Lockwood Greene and its contractor excludes the following: 1. Performance Bonds 2. Tax beyond that required for the purchase of materials 3. Professional Liability as Lockwood Greene is following Praxairs direction as a subcontractor (Lockwood Greene will NOT provide sealed drawings) 4. Providing Gas Equipment not fully defined on the sketches provided by Praxair

Scope of Work
Services provided: 1. Provide design services for the installation piping, gas panels, cylinder supports, and changeover systems provided by Praxair. These design services to include:

P&ID for the gas systems to enable efficient contractor installation General Routing Plan with details for the installation of the piping rack for the laboratory General specifications and equipment recommendations for materials associated with the project Contractor selection and organization for execution of the work

2. Provide Construction Management Services to supervise local tradesmen for the installation of the Praxair-supplied equipment and piping systems. The time for these services is estimated to be five days of on-site time for the Construction Manager. Construction Management Services to include:

Overall installation scheduling developed from the available labor Supervision of tradesmen for conformance to specification Final systems evaluation Consult with Laboratory Owners for installation processes

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3. Provide the following deliverables for the project:

Complete P&IDs for installation of the piping systems (preliminary for review) Complete P&IDs for documentation of the installation of the gas systems (as-built from redlines by Construction Manager) Required specifications for process piping and final testing Review by Safety Engineer for usability and hazard analysis

Compensation
Following review of the sketch information we requested BMW to perform a site walk with UL and to develop an estimate for the installation. Based on that estimated cost we are submitting our cost proposal for your consideration. Lockwood Greenes Estimate for Design, Procurement, and Construction Management Services .................................$ 5,280 Contractors Best Price Estimate for Installation ..............................................$33,000 ESTIMATED TOTAL COST .......................................................................$38,280 We think the contractor would require two work weeks to complete the installation and we would have a Construction Manager on site for the installation period to provide oversight.

Lockwood Greene is a full service organization specializing in services for the High Technology Industry. We believe our experience and depth could afford Praxair the cost effective solutions for installation of the gas cabinets at the Dahlgren location. We stand ready to assist Praxair in this endeavor at your earliest convenience. Please feel free to contact me at your earliest convenience to further explore this project. Regards, LOCKWOOD GREENE

Stephen L. Yellin Group Director, Advanced Technology and Western Division

This proposal, including all data contained herein, is proprietary and shall not be disclosed to third parties without the express consent of Lockwood Greene.

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