ex10-59.htm


    Exhibit 10.59

     

     

    

    
      
        Location
Based Technologies

        PocketFinder
Rev B


      

      
 

       

      


       

      
        	Prepared
      by Rod Landers 

                Spectrum
      Design Solutions, Inc.

                April
      19, 2010

              	 


      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
        Table
of Contents

         

         

        
          	
                  Executive
      Summary

                	3
	 
      	 
      
	
                  Non-Recurring
      Costs

                	3
	 
      	 
      
	
                  Technical
      Approach

                	4
	 
      	 
      
	
                  Statement
      of Work

                	4
	 
      	 
      
	
                  Phase
      1: Product Requirements (Not Quoted)

                	4
	 
      	 
      
	
                  Phase
      2: Preliminary Design and Alpha Prototype Build

                	4
	 
      	 
      
	
                  Phase
      3: Detailed Design and Beta Prototype Build

                	5
	 
      	 
      
	
                  Phase
      4: Pilot Production

                	5
	 
      	 
      
	
                  Phase
      5: Production

                	5
	 
      	 
      
	
                  Milestones

                	6
	 
      	 
      
	
                  Deliverables

                	6
	 
      	 
      
	
                  Key
      Assumptions

                	6
	 
      	 
      
	
                  Project
      Authorization

                	7


        

        


        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

      

       

      Executive
Summary

       

      Location
Based Technologies, (LBT) is in the pre-production stage of manufacturing
PocketFinder® personal locators. PocketFinders are small personal location
devices designed to give parents, guardians and pet owners peace of mind.
Utilizing the U.S. Department of Defense's multi-billion dollar Global
Positioning System (GPS) satellites and existing wireless technology, their team
of engineers have developed technology which allows their network of members to
locate anyone carrying their device, whether that person is inside of a
building/structure or outdoors (Systems and Method Patent pending).

       

      LBT has
found out that their first revision of their device will not pass
PTCRB  without considerable effort and time.  Therefore, LBT
has approached Spectrum Design Solutions, (Spectrum) to design a drop in
replacement electronics board, which will use modules from ublox that are
pre-certified.  This will make the overall certification process much
shorter and cost effective.  Additionally, this will leverage existing
Spectrum IP that has been deployed in the field already, and therefore will
reduce overall risk given the timeline that LBT has asked Spectrum to
follow.

       

      LBT has
already purchased a license to access Spectrums IP library, and Spectrum has
started incorporating that IP in to a redesigned electronics
board.  Additionally, Spectrum has done an antenna analysis and has
prototyped some possible antenna configurations that may meet the needs of
LBT.  The analysis and prototyping efforts have yielded some promising
results, however, at this time Spectrum does not warrant that the device will
perform on all four GSM bands.

       

      For a
detailed explanation of the costs and dates below, please refer to the project
plan.

       

      Non-Recurring
Costs

       

      
        	
                Phase
      Description

              	
                Projected
      Cost

              	
                Delivery
      Date

              
	
                Product
      Definition

              	
                N/A

              	
                N/A

              
	
                Alpha
      Design

              	
                $184K

              	
                2/5/2010

              
	
                Beta
      Design

              	
                $103K

              	
                3/24/2010

              
	
                Pilot
      Production Support

              	
                $31K

              	
                5/26/2010

              
	
                Production
      Support

              	
                $6k

              	
                6/16/2010

              


      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      Technical
Approach

       

      Spectrum
intends on modifying an existing reference design to meet the needs of the
PocketFinder project.  The following things will need to be done to
the design;

       

      
        	
                1)  

              	
                Switch
      out the existing GSM radio to the LEON-100 from
  ublox.

              


      

       

      
        	
                2)  

              	
                Add
      the USB charging building block IP.

              


      

       

      
        	
                3)  

              	
                Modify
      the antennae solution for the
application.

              


      

       

      
        	
                4)  

              	
                Remove
      any components that are not needed.

              


      

       

      
        	
                5)  

              	
                Lay
      out the new PCB for the
application.

              


      

       

      
        	
                6)  

              	
                Modify
      the software as needed for the
application.

              


      

       

      
        	
                7)  

              	
                Test
      the resulting implementation.

              


      

       

      Statement
of Work

       

      Phase
1: Product Requirements (Not Quoted)

       

      This
phase was covered in the support contract that preceded this design
effort.

       

      Phase
2: Preliminary Design and Alpha Prototype Build

       

      Electrical
engineers will design a printed circuit board that will be a drop in replacement
for the existing PocketFinder enclosure.  This board will utilize the
Spectrum building block IP to minimize design time and risk.

       

      Software
engineers will modify the device code as needed to satisfy the use cases for the
Alpha release.  Note that most of the interface change will actually
happen on the server side, and that LBT personnel will be responsible for that
change.

       

      Alpha
level prototype units (Qty 50) will be built and assembled for integration,
design verification, performance testing, and evaluation of product
features.  These units will be delivered to LBT for internal
evaluation.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      Phase
3: Detailed Design and Beta Prototype Build

       

      Any
design issues discovered during the testing of the Alpha prototypes will be
integrated into the Beta design.  Software enhancements will be made
based on evaluation of the alpha units in addition to the anticipated beta
functionality.

       

      Beta
level prototype units (Qty 50) will be built and assembled for integration,
design verification, performance testing, and evaluation of product
features.  These units will be delivered to LBT for possible external
evaluation and validation (Beta units).

       

      Phase
4: Pilot Production

       

      The
transition of this product to manufacturing will start in the Beta phase or
earlier. Early involvement of the manufacturing team in the design process will
ensure thorough manufacturing preparation through the proper planning of
fabrication and assembly techniques and processes.

       

      Minor
changes and refinements will be made based on the findings of the Beta
prototypes. Final circuit board documentation and software binaries will be
handed over to the final manufacturer for their pilot run which will test the
readiness of the assembly line. Engineering definition for all purchased and
fabricated parts will be finalized and transferred to the CEM.

       

      Certification
testing will be performed on Pilot units.

       

      Phase
5: Production

       

      Spectrum
will be available to provide “level of effort” support during
production.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      Milestones

       

      Please
see the project plan included in this quote package for milestones.

       

      Deliverables

       

      Please
see the project plan included in this quote package for
deliverables.

       

      Key
Assumptions

       

      Spectrum
has made the following key assumptions as part of the estimates and schedule for
the attached Microsoft Project Plan.  Changes to these assumptions by
either LBT or as discovered during the course of the program may impact the cost
basis and schedule of the plan.

       

      
        	
                1.  

              	
                Spectrum’s
      proposal assumes the start date of the project is the same as the kick-off
      meeting.  Should client propose a different kick-off meeting
      date, the completion date will move
accordingly.

              


      

       

      
        	
                2.  

              	
                Spectrum
      assumes that weekly telecon meetings with client will be held to maintain
      communications on program progress and
issues.

              


      

       

      
        	
                3.  

              	
                Spectrum
      assumes that client will respond in a timely manner for the duration of
      the program to maintain the program
timeline.

              


      

       

      
        	
                4.  

              	
                Spectrum
      assumes that client team members will be available for scheduled review
      sessions.  Review sessions will be held in
      Minneapolis.  No travel expenses are included in this
      proposal.

              


      

       

      
        	
                5.  

              	
                Spectrum
      assumes that client will reimburse any travel expenses incurred during the
      course of the project.  No travel expenses have been included in
      this quote.

              


      

       

      
        	
                6.  

              	
                Spectrum
      assumes that client will reimburse any expenses not accounted for in the
      quote such as RF chamber time, and Certification
  costs.

              


      

       

      
        	
                7.  

              	
                Spectrum
      assumes that client will provide mechanical enclosures, batteries, and
      power supplies for the prototypes.  Only materials for the
      printed circuit board parts and assembly have been included in the
      quote.

              


      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      Project
Authorization

       

      Thank you
for the opportunity to work with your company. Please sign below to indicate
your acceptance of the terms and authorized scope of work.

       

      Spectrum
Design Solutions

       

      
        
          	 	 	 	 	 
	
                  /s/
      Rodney Landers

                	 	 	
                   

                	 
	
                  
                    Proposal
      Author  Rodney Landers

                    Title VP
      of Technical Sales

                  

                	 	 	
                   

                	 


        

      

       

      Please
check the boxes below to indicate which are approved by this
signature.

       

      oProduct
Definition                                              oAlpha
Design                                   oBeta Design

       

      oTesting and
Documentation                                                                              oProduction
Support

       

      


       

      


       

      


       

      ________________________________________________________

       

      S I G N A
T U R
E                         T
I T L
E                                D
A T E

      oCLIENT
COPY                                        oSPECTRUM
COPY

       

       

       

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