STATEMENT OF POLICY

INTEGRAL CORPORATION STATEMENT OF POLICY

July 2009

INTRODUCTION

Thank you for selecting Integral as your total solution service provider. We greatly appreciate your confidence in us. This document outlines Integral’s general service policies. Please contact us if you have any questions. An up to date version of these polices can be found on our website at www.integralcorp.com under the “About Integral” link.

RATES, BILLING POLICY, BILLING PERIODS

The standard rate for all services is $150 per hour. Consulting, programming, documentation, training, installation of hardware or software, research work and telephone support is charged at this rate. Additionally, any other services required such as detailed record keeping, report writing, answering service-related questions, etc. are charged at this standard rate. Individual client projects may have a rate that differs from the standard rate.

After hours work – any services performed after 6 p.m., before 9 a.m., work on weekends or holidays will be charged at $200 per hour with a five-hour minimum, subject to consultant availability. Travel time is charged for after hours work. Holidays and holiday weekends are subject to consultant availability. These are weekends such as Memorial Day, Labor Day, the 4th of July, Easter, Thanksgiving, Christmas, and New Year's Day, etc.

All visits to client sites are subject to a three-hour minimum. All services are billed in 15-minute increments.

Paging an Integral consultant may incur a 15-minute charge, at the discretion of your consultant. This charge is necessary because we are sometimes involved in other client work and we must stop what we are doing to respond to the page. This can be disruptive to our work and it is unfair to the client we are visiting.

NSF checks to Integral Corporation will result in being placed on COD-Cashiers Check or Credit Card terms only. All outstanding balances must be paid in full immediately. Net terms will be immediately revoked and will not be reinstated for a period of at least 1-year.

TRAVEL

There is no charge for travel for clients within the metropolitan Chicago area. One-half (one-way) of the total travel time required may be charged at standard or project rates for customers outside of the metropolitan Chicago area. This charge will be assigned on a per incident basis. Full travel time will be charged to all sites for work performed on weekends, holidays, and after hours.

INVOICES & BILLING PERIODS

Consulting services are billed on a monthly basis. Hardware and software sales are usually invoiced immediately upon delivery. Each month is one billing period. Invoices are payable within twenty days of receipt (Net 20). A deposit may be required for large purchases. Integral retains a security interest in the products sold until the invoice is paid in full.

LATE PAYMENTS

Unpaid invoices are subject to a late payment fee of 1.5% of the outstanding balance each month. This fee will be charged on all invoices that are not paid within 20 days of the invoice date. You will be charged this fee on the 21st day after the invoice date. We will discontinue services for any client who has balances outstanding for more than 45 days. The client must pay any and all expenses related to collecting past due balances, including legal fees.

PRIORITY VISITS

We would like to support your every need and we strive to do so, but it isn't always possible for us to make an unscheduled visit to your office at a moment’s notice, particularly for non-emergency issues or problems that do not greatly affect your daily operations. Often, we have other client work scheduled and it is unfair for us to reschedule other client work and place the requests of some clients over others. In most cases, advance planning can greatly reduce the need for high-priority services.

We recognize that sometimes you would like some issues or problems resolved as quickly as possible, even if they are not true emergencies. To accommodate this need, we have developed the concept of a “Priority Visit”.

If you need help immediately, you may request a Priority Visit. In this situation, we would drop whatever else we were working on, including leaving other customer sites, reschedule work and begin working on your problem as soon as possible (unless we are providing emergency services for another client. Then service will be provided as soon as possible on a first-come first-served basis.) The charge for a Priority Visit is a 4-hour minimum at our standard rates. This will result in a minimum charge of $520. If the visit exceeds 4 hours, we will bill on an hourly basis.

This does not apply to emergency support. You will be billed at your normal rates in emergencies. Our definition of an emergency is a situation that adversely affects your business's ability to conduct strategic business operations. Examples of this are: a network crash, inability to produce payroll, etc. Problems with individual computers do not qualify as emergencies, unless they are running a primary task such as payroll.

These policies reflect both our desire to serve all of our customers fairly and the necessity of prioritizing the types of services we provide to our clients based on our client's needs.

EQUIPMENT PURCHASES

Integral is a value-added reseller and consulting firm. As such, we bill on an hourly basis for all services rendered, regardless of who provides the computer equipment for your site. We do not bill for price quotes, however, research, analysis, and recommendations are consulting services. Integral Corporation retains a security interest in all items until invoices are paid in full.

Our pricing is competitive with that of other vendors. We monitor the pricing of other vendors on a regular basis and adjust our pricing accordingly. If you wish, you can acquire computer hardware from other vendors, and we will install and maintain that equipment at our normal hourly rates. However, we will not be able to support the equipment as well as if we were the ones who provided it. This is because our relationship with our suppliers gives us leverage that we can apply to help fulfill your needs. It makes it easier for us to replace items that are defective, or those that fail while still under warranty. We often check for competitive prices with other vendors and match our prices. If we cannot match their pricing, we will, as best we can, inform you and give you the opportunity to purchase the items direct from the other vendor or offer you the option of purchasing it for you from the vendor and passing the cost through to you. Exercise caution in purchasing equipment, sometimes it may not be compatible with your existing environment. Please call us if you have any questions regarding new purchases, we would be happy to help you.

Integral provides a one year carry-in parts and labor warranty on computer systems. Individual parts may have longer manufacturer warranties, for example, Intel motherboards carry a three-year manufacturer’s warranty. After one year, we will repair your computer at our standard hourly rates, subject to replacement part availability from the manufacturer.

CUSTOM SOFTWARE

Integral can create custom software specifically tuned for your business. Problems may arise from time to time when using custom developed software. These problems may or may not be related to a "bug" in the program. For example, the data may be in error or the program was used incorrectly. The time we spend determining the cause of a problem will be charged at our standard hourly rates.

Corrections for program malfunctions (called "bugs") are charged at our standard rate. Program changes, updates, enhancements, and other "out of scope" work are treated independently of program errors. Costs attributable to out of scope work may not be applied to the estimates stated in a proposal or standard contract.

OWNERSHIP

All programs, documentation, and training materials written by Integral are copyrighted by Integral and remain the property of Integral Corporation. These items may not be sold or distributed without written permission or separate contractual agreement. Any form of sale or distribution is expressly prohibited without a written agreement.

Customers purchasing custom-written software are authorized to use the software in any manner consistent with normal program operation. You are granted a license to use the program. This license usually limits to usage of the software at one site only, unless it was specifically designed to operate for multiple sites. Separate arrangements should be made for using the software at multiple sites. You have the right to make backups and your own programming changes to any system we have developed. Integral retains the right to use its software libraries, tools, and any functions, code, tools, etc. developed during your project for developing software for other clients. In the case of pre-existing software that you have developed internally or by contracting other companies, Integral retains the copyrights on any modifications we make, and you are granted a license to use them or modify the source code.

Integral respects copyrights of commercial software. We cannot provide unauthorized copies of software to our clients. This protects both our clients and us. The Software Publishers Association has fined many companies for illegal use of software. Please do not ask us for copies of software.

INTERNET

Integral provides a full suite of Internet services including web site development, hosting, email hosting, and other services. These services are governed by our Acceptable Use Policy, located at www.integralcorp.com/aup.htm. Integral prohibits the use of our network, facilities, or equipment for the transmission of Unsolicited Commercial Email (UCE) also known as “spam”. Use of Integral’s services constitutes acceptance of the Acceptable Use Policy.

WHY AM I BILLED ON AN HOURLY BASIS AND NOT ON A FLAT PRICE BASIS?

Integral bills on an hourly basis for all services provided to our clients, with a three-hour minimum for client site visits. Integral estimates the time required to perform various tasks as closely as possible using our experience and actual historical information for similar tasks. We do not believe in grossly overestimating the amount of work it takes to complete a task, and yet, we do not want to underestimate the actual amount of work required.

Our estimates are based on the average amount of time required to perform any given task; sometimes it takes more time, sometimes less. We always stress that our quotes are estimates, not flat quotes. Each configuration, while similar, is unique. Sometimes problems arise during the performance of our work that require more attention. These problems, though no fault of our own, simply require more time to correct.

We bill for actual time for the following reason: It is the fairest way to bill our customers. The problem with flat quotes is that it is very rare that the quote is accurate. A flat quote is almost always estimated high, so that a vendor will not lose money. So the customer loses. If the flat quote is estimated low, the vendor loses. Enough of these and a vendor will go out of business. Very rarely is the estimate exactly right. So, usually, the customer loses out and pays much more for a service than it is actually worth. That’s why we bill on an hourly basis. You are billed for only the time we spend working.

Why Does Integral Have Minimums for Site Visits?

The three-hour site minimum evolved because of the time required to get to customer sites. There are few businesses that can afford to have people traveling for two hours to work for 5 minutes at a customer site unless they charge exorbitant rates. We believe in delivering value to our customers. Rather than charge our customers for driving around, we created the three-hour minimum so that we could encourage our customers to use our time efficiently so that we can deliver maximum value for your money. The easiest way to avoid the minimum is to have 3 hours of work for us.

WHY THE HIGHER RATES AFTER HOURS?

We charge $200 an hour for all work after 6 p.m., before 9 a.m., and on weekends and holidays with a five-hour minimum for these after hours visits.

The nature of our business often requires us to work very long hours. We must be available during normal business hours, but many tasks require that we work after regular business hours so that we do not interrupt our client’s business operations. This requires Integral's employees to make personal sacrifices in order to most effectively service our customers. We do so gladly, but it is unreasonable to expect us to do so without adequate compensation. Most of the additional fee goes directly to the consultant involved. Hence, the higher rates in the evenings and weekends.