Madupree,
I commented over on KD but jumped in over here to see some more of the back story.
I know you REALLY want this to work. But I have to wonder. Isn't this a lot of trouble to go through to get a contract for the sole purpose of using a SECRET handle material, that you are not willing to provide the details of, which MAY or MAY NOT serve as a functional handle material? Is it a dimensionally stable material? Is it durable under hard use? Will it shatter when dropped? Will it shatter when dropped in subzero temperatures and a person is relying on it? Will it warp when left in somebody's trunk on an August day in south Texas?
Will you be prepared to refund your customer's money if your knife fails?
My next question is, what is the level of expected fit and finish on the part of your customer? So far you've only mentioned grinding--no hand work. So you're talking user-grade belt finishes at best. Is this what the customer wants? Is this what the customer expects? What is the standard here? A custom handmade piece, or commercial factory grade such as TOPS, Meyerco, etc.?
Even some of the guys that have been doing belt finishes for a few years eventually realize that under the surface are some deeper belt scratches that didn't get ground out. They try to refine their skills to fix the problem. You haven't even ground knife #1 yet.
If I can offer a suggestion, find a knifemaker in your area. Spend a weekend with him before you drop coin on tools. Heck, make your jig and then go visit him/her. Make your dozen practice knives--all the way through to finish--and then decide about whether you can fulfill your order.