| Scope      Of This Agreement:· This      is a Time and Materials Agreement· This      Agreement applies to Projects performed for US-basedcompanies· This      Agreement  assumes that the following documents will be created      as part of the Project:o Project      Requirements Documento Design      Verification Test PlanTo      Complete This Agreement:· Complete      the information on this first page· Confirm      pricing in Exhibit A· Client      signature |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| EffectiveDate: | 1/6/2010                                                                                                                                                                                                                                                             |   |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Spectrum:      |                                                                                                                                                                                                                                                                 |   |
|           | Spectrum      Design Solutions, Inc.110      N 5th      St. Floor 3Minneapolis,      MN 55403Attention:      General Manager, Spectrum ServicesTelephone:      (612) 435-0789Facsimile:      (612) 435-0736A      wholly owned subsidiary of Digi International Inc. |   |
| Client:        |                                                                                                                                                                                                                                                                 |   |
|           | Location Based Technologies,      Inc.                                                                                                                                                                                                                          |   |
|           | Client Name                                                                                                                                                                                                                                                          |   |
|           |                                                                                                                                                                                                                                                                 |   |
|           | Address      of Principal Office                                                                                                                                                                                                                                     |   |
|           |                                                                                                                                                                                                                                                                 |   |
|           | 38 Discovery, Suite      150                                                                                                                                                                                                                                         |   |
|           |                                                                                                                                                                                                                                                                 |   |
|           | Irvine, CA 92618 -      3127                                                                                                                                                                                                                                         |   |
|           | City,      State, Zip                                                                                                                                                                                                                                                |   |
|           |                                                                                                                                                                                                                                                                 |   |
|           | Client is a (choose      one)                                                                                                                                                                                                                                        |   |
|           |     o   Corporation                                                                                                                                                                                                               |   |
|           |     o   LLC                                                                                                                                                                                                                       |   |
|           |     o        Partnership                                                                                                                                                                                                               |   |
|           |          o        Other: _____________________________                                                                                                                                                                                      |   |
|           |        formed under the laws of ___________________                                                                                                                                                                                                             |   |
|           |                                                                                                                                                                                                                                                                 |   |
| Contact:       |                                                                                                                                                                                                                                                                 |

|   | Name            Joseph      Scalisi  |   | Mailing      Address, if different from Principal Office |
|--------|-------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|
|   | Phone                                                                                                 |   |                                                     |
|   |             888-600-1044                  |   |                                                     |
|   | Email                                                                                                 |   |                                                     |
|   |             joseph@pocketfinder.com  |   |                                                     |

----

| 1.   | Definitions. |
|----------------|--------------|

| a.   | “Project”      shall mean the services performed for and Deliverables to be received by      Client. |
|----------------|------------------------------------------------------------------------------------------------------------------|

| b.   | “Project      Documents” shall mean the set of documents defining the Project and the      respective rights and obligations of the Parties.  The Project      Documents may contain some or all of the  following: |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i.   | “Agreement”      – this Terms and Conditions document, along with any Exhibits and      Attachments |
|----------------|-----------------------------------------------------------------------------------------------------------------------|

| ii.   | “Project      Plan” – a written Plan describing the separate phases of the      Project |
|-----------------|-----------------------------------------------------------------------------------------------------------|

| iii.   | “PRD”      – the Product Requirements Document that is delivered as part of Phase 1      of the Project |
|------------------|---------------------------------------------------------------------------------------------------------------------------|

| iv.   | “DVT”      -- the Design Verification Test plan that is delivered as part of Phase 1      of the Project |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| v.   | “VOR”      – a Variation Order Request, which is a written request for modifications      to the Project, as required by changes in assumptions or      requirements. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vi.   | “MOR”      – Materials Order Request |
|-----------------|--------------------------------------------------------|

| c.   | “Deliverables”      shall mean the items, reports and information to be delivered to the      Client, as defined in the ProjectDocuments. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | “Project      Costs” shall consist of labor costs, non-labor expenses and materials      costs. |
|----------------|-------------------------------------------------------------------------------------------------------------|

| e.   | “Party”      or “Parties” shall refer to Spectrum and Client, either individually or      collectively, as the contextrequires. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Project Initiation,      Documentation, Variation |
|----------------|---------------------------------------------------|

| a.   | By      its signature below, Client authorizes Spectrum to begin the      Project. |
|----------------|------------------------------------------------------------------------------------|

| b.   | During      Phase 1 of the Project, Spectrum will produce a PRD and a      DVT.  Once Client has accepted the PRD and DVT, those documents      will define the Deliverables and the acceptance process for the      Deliverables. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Client      may cancel a project or any phase of a project or put it on hold with a      written notice to Spectrum.  After receipt of notice, Spectrum      will discontinue work on the project and will only engage in such work as      is necessary to close the project orphase. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Pricing and Payment      Terms. |
|----------------|---------------------------------|

| a.   | The      Project labor costs are specified in Exhibit A or, otherwise, in a written      document. |
|----------------|----------------------------------------------------------------------------------------------------|

| b.   | This      is a Time and Materials contract.  This means that Spectrum will      perform work on an hourly rate basis for engineering      services.  Any needed materials will be handled as set forth in      Section 3.e. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Estimates      provided by Spectrum are just that, estimates.  Of necessity,      estimates require that certain assumptions be made.  For      instance, one assumption normally made is that the Client will provide      needed data in a timely manner and that data will be      accurate.  If any assumptions turn out to be wrong the resulting      estimate may very well be wrong as well.  Even if assumptions      are correct, the work may turn out to be more or less complex than      originally thought.   Spectrum will use its best judgment      in providing estimates but the parties acknowledge that Spectrum will be      reimbursed for the total number of hours for which it provides services,      whether that is more or less than or exactly as  estimated. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | The      scope, structure, and any estimated costs are based on Spectrum’s      understanding of the Project requirements as communicated by the      Client.  If requirements or assumptions change, Spectrum will      provide the Client with written recommendations for Project changes in the      form of a VOR.  Spectrum will only proceed with major changes      after Client has approved the appropriate VOR.  A Major Change      is a variation in the Project requirements that is estimated by Spectrum      to require more than eight hours of additional work.  If the      variation in Project requirements requires the services of more than one      person, the eight-hour threshold applies to the aggregated amount of      estimated additional work.  A Minor Change shall be a variation      in the Project requirements that is not a Major Change.  Minor      changes do not require a VOR. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e.   | Spectrum      will notify Client in writing when it reaches or is about to reach the      most current estimate for the work being performed.  It will      also provide a new estimate to complete the work.  Spectrum may      then, at its option, suspend work until Client provides written      authorization to proceed in accordance with the new    estimate. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| f.   | Project      non-labor expenses and materials costs (“Non-labor Costs”) not otherwise      set out in a Project Document must be pre-approved by Client and are an      added expense.  Non-labor Costs will be billed at cost plus      15%.  Items that may be included in Non-labor Costs are travel      expenses, third-party testing fees, fabrication expenses, certification      expenses, hardware and materials.  Any required materials      purchase over five thousand ($5000.00) dollars will be invoiced      immediately. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g.   | Project      Costs are exclusive of all federal, state, municipal or other government,      excise, sales, use, occupational, or like taxes or customs, except for      taxes on Spectrum’s net income.  Client agrees to pay any tax      Spectrum may be required to collect or pay now or at any time in the      future which are imposed upon the sale or delivery of the services      provided. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h.   | Client      may request credit terms.  If credit is approved on Client’s      account, Spectrum will issue monthly progress billings with terms as      indicated in the credit approval letter.  Client’s account may      not exceed the credit or payment terms.  Overdue invoices are      subject to expenses of collection, if any, and a finance charge of the      lower of: |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i.   | 1.5%      per month on any past-due balance, calculated per-diem, simple interest;      or |
|----------------|--------------------------------------------------------------------------------------------|

| ii.   | the      maximum permitted by law, |
|-----------------|------------------------------------|

| i.   | Unless      otherwise agreed to by Spectrum and prior to Spectrum initiating the      Project, Client will tender payment equal to the estimated Project Costs      for the first month of the Project. This down payment will apply to the      final installments of progressbilling. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| j.   | Accounts      that are past due may be placed on hold and internal resources      reallocated. |
|----------------|------------------------------------------------------------------------------------------------|

| k.   | If      no credit is requested or credit approval has not occurred, Client will      make periodic estimated advance payments in amounts set by      Spectrum.  The estimated advance payment and the payment of any      outstanding balance on Client’s account must be received in order for work      on the Project to proceed.  Project Costs will be charged      against the Client’s account as they accrue.  A statement of      Client’s account and Project Costs charged against it will be sent      periodically or will be available upon reasonable  request. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| l.   | Accounts      that exceed the credit terms or fail to maintain a positive balance will      immediately be placed on hold and internal resources will be reallocated      until the account is paid.  If internal resources are      reallocated due to lack of funds or a past-due account balance, Spectrum      cannot guarantee the date when internal resources will be available for      allocation to the Project and any Project time estimates will be deemed      withdrawn. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| m.   | If      Client terminates or suspends the Project, Client agrees to pay Spectrum      for accrued Project Costs and for additional Project Costs incurred in      terminating or suspending theProject. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| n.   | Spectrum      will send final billings or a final statement immediately upon conclusion      of the Project.  Credit balances remaining in Client’s account      after final payment will berefunded. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Deliverables, Testing      And Acceptance. |
|----------------|--------------------------------------------|

| a.   | Project      Deliverables will be tested by Spectrum and Client according to the      DVT.  If a Deliverable fails to pass a DVT requirement, the      Deliverable will be revised and then retested.  The process of      revision and retesting will continue iteratively until the Deliverable      passes the applicable requirements.  Once a Deliverable passes      the requirements of the DVT, it is deemed  accepted. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | When      the Project is concluded, terminated or suspended and full Payment has      been received by Spectrum, Spectrum will deliver to  Client: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| i.   | any      remaining Deliverables; |
|----------------|----------------------------------|

| ii.   | unused      project materials purchased by Spectrum for the Project;    and |
|-----------------|-----------------------------------------------------------------------------|

| iii.   | source      code files. |
|------------------|-------------------------|

| c.   | Executables      that are delivered during the course of the Project and prior to full      payment of Project Costs may be trial versions only and may function only      during the trial period. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.   | Intellectual Property      Rights. |
|----------------|------------------------------------|

| a.   | In      connection with its performance of the Project, Spectrum may use certain      tools, utilities, modules, techniques, processes, knowledge, data, code or      other materials that Spectrum developed (or had developed) independently      of any work on the Project (collectively, “Spectrum      Technology”).  As between Spectrum and Client, Spectrum will      retain sole and exclusive ownership of all Spectrum Technology, including      all Intellectual Property Rightstherein. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | In      connection with its performance of the Project, Spectrum may produce      software, Source Code, Object Code, or a set of Schematics that (a)      implements hardware-level functionality or (b) consists of      intermediate–level or low-level technology building blocks that provide      basic functionality and consist of routines that may be used in different      contexts and that are not unique to the deliverable and which shall remain      the property Spectrum (“IntermediateCode”). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Unless      otherwise specified in the Project Documents, to the extent that Spectrum      incorporates any Spectrum Technology or Intermediate Code into the      Deliverables, Spectrum hereby grants to Client a non-exclusive,      irrevocable, perpetual, royalty-free, fully paid-up, worldwide license to      make, have made, use, offer to sell, sell, import, copy, modify, create      derivative works based upon, distribute, sublicense, display, perform and      transmit such Spectrum Technology and Intermediate Code in conjunction      with Client’s commercial utilization of the  Deliverables. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | Excluding      Spectrum Technology, Intermediate Code and any third party materials and      information, all developments, discoveries and trade secrets conceived,      discovered, developed or reduced to practice by Spectrum, solely or in      collaboration with Client, that are created in connection with the Project      shall be considered Project “Inventions”. An example of an Invention is      the PCB layout for the project.  Once Spectrum receives full      payment of all Project Costs associated with the Project phase in which an      Invention was included as part of the Deliverable, that Invention will      become the sole property of the Client.  Prior to receipt of      payment, as described in the preceding sentence, any Project Inventions      remain the sole property ofSpectrum. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Confidentiality. |
|----------------|------------------|

| a.   | Exhibit      B (“Protection Of Proprietary Information”) is incorporated herein. In the      event a separate agreement that protects the confidentiality of a Party’s      Proprietary Information exists and is in effect, the terms of that      separate agreement will control over ExhibitB. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Spectrum      does not consider the fact that it is doing work for the Client in and of      itself to be confidential unless otherwise instructed by the      Client.  If the Client does consider its relationship with      Spectrum confidential, and so notifies Spectrum in writing, Spectrum will      only disclose such information with prior approval of the      Client. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Spectrum’s      viability in the marketplace is dependent upon the presentation of past      work performed.  To that end, Spectrum may make public a general      description regarding its work for Client as an example of Spectrum’s      value to the marketplace, once approved by  Client. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Indemnification.  Client      shall defend, indemnify and hold harmless Spectrum and its affiliated or      controlling companies, and each of their respective directors, officers,      employees, agents, or customers, from and against any and all claims,      losses, damages, costs, (including legal fees and other litigation      expenses), penalties, liabilities, judgments, amounts paid in settlement,      fines and expenses arising out of or in connection with any claim against      Spectrum that relate to work performed or actions taken in reliance on or      conformity with information, documents, intellectual property, designs,      specifications or instructions provided by  Client. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | Warranty and      Limitation of Liability.  Spectrum warrants that it shall      perform the Project in a workmanlike manner, customary in the      industry.  Spectrum warrants that any hardware produced in      conjunction with the Services rendered will perform to generally accepted      industry standards.  THIS IS THE ONLY WARRANTY APPLICABLE TO THE      WORK HEREUNDER.  ANY OTHER WARRANTIES OR REPRESENTATIONS      EXPRESS, IMPLIED OR STATUTORY; INCLUDING, WITHOUT LIMITATION, WARRANTIES      OF QUALITY, PERFORMANCE, NONINFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A      PARTICULAR PURPOSE ARE EXPRESSLY DISCLAIMED TO THE FULLEST EXTENT ALLOWED      BY LAW.  SPECTRUM DOES NOT WARRANT THAT THE PROJECT DELIVERABLES      WILL MEET CUSTOMER NEEDS OR BE FREE FROM ERRORS.  THE FOREGOING      EXCLUSIONS AND DISCLAIMERS ARE AN ESSENTIAL PART OF THIS AGREEMENT AND      FORM THE BASIS FOR DETERMINING THE PRICE CHARGED FOR THE      SERVICES.  IN NO EVENT SHALL SPECTRUM BE LIABLE FOR ANY      INCIDENTAL OR CONSEQUENTIAL DAMAGES INCLUDING LOST REVENUE OR      PROFITS.  SPECTRUM’S TOTAL LIABILITY HEREUNDER REGARDLESS OF THE      FORUM OR FORM OF ACTION WILL NOT EXCEED THE TOTAL AMOUNT PAID BY CLIENT      UNDER THIS AGREEMENT. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9.   | Employee      Solicitation. |
|----------------|-----------------------------|

| a.   | Client      recognizes that Spectrum has a substantial investment in its employees and      design service subcontractors. Client agrees that it will not, except as      set forth in this Agreement, solicit for employment Spectrum employees or      design service subcontractors for a period of two years after completion      of the Project. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Spectrum      recognizes that Client has a substantial investment in its employees.      Spectrum agrees that it will not, except for activities related to this      Agreement, solicit for employment Client employees for a period of two      years after completion of theProject. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | Governing Law and      Resolution of Disputes. |
|-----------------|------------------------------------------------|

| a.   | This      Agreement shall be governed by the laws of Minnesota without regard to      Minnesota’s conflict of laws rules.  The application of the UN      Convention on Contracts for the International Sale of Goods is      specifically excluded. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | In      any proceeding or action brought by one of the Parties to enforce or      interpret the provisions of this Agreement, the prevailing Party will be      entitled to be reimbursed by the other Party for its reasonable attorney      fees and other legal costs, in addition to other relief to which that      Party may be entitled. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | General      Provisions: |
|-----------------|--------------------------|

| a.   | Assignment.  Except      as stated in Section 5, Party may not sell,      assign or delegate any rights or obligations under this Agreement to a      third party, unless the entity receiving the assignment owns a controlling      interest in the assigning Party. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Entire      Agreement.  This Agreement constitutes the entire agreement      between the Parties with respect to the subject matter herein and      supersedes all prior written and oral agreements between the Parties      regarding the subject matter herein. Any modifications or additions to      this Agreement must be in writing and signed by both    Parties. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Headings.  Headings      used in this Agreement are for reference only and shall not be considered      when interpreting this Agreement. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | Impossibility      of Performance.  With the exception of a requirement to make a      payment, neither Party shall be liable for any damages or penalty for      delay or for any other failure to perform in accordance with the terms and      conditions of this Agreement if such delay or failure to perform is made      impossible, in whole or in part, due to factors beyond the Party’s      reasonable control, including, but not limited to, a) natural events, b)      acts of government or c) acts of third parties, including criminal acts,      civil unrest, labor disputes, transport and delivery disruption, supply      chain disruptions, cybercrimes orterrorism. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e.   | Notices.  Any      notice or other communication required or permitted by this Agreement to      be given to a Party shall be in writing and shall be deemed      given: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i.   | When      delivered, if delivered personally; |
|----------------|-----------------------------------------------|

| ii.   | When      sent, if transmitted via facsimile (with receipt of confirmation of      complete transmission) to the Party at the Party's facsimile number listed      in this Agreement; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | When      sent, if transmitted via email with a copy of the transmission to the      other Party’s email address; |
|------------------|-------------------------------------------------------------------------------------------------------------------------|

----

| iv.   | When      received, if sent by commercial service that provides tracking and      confirmation of receipt; |
|-----------------|------------------------------------------------------------------------------------------------------------|

| v.   | Three      business days after posting with the US Postal Service, registered or      certified mail (return receipt requested), for delivery within the United      States; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vi.   | Seven      business days after posting with the US Postal Service, registered or      certified mail (return receipt requested), for delivery outside the United      States; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f.   | Severability.  If      any provision of this Agreement is found to be illegal or unenforceable,      the other provisions shall remain effective and enforceable to the      greatest extent permitted by law. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Phase      I Labor Fees   | $N/A  |
|---------------------------|-------|
| Phase      II Labor Fees  | $184K |
| Phase      III Labor Fees | $103K |
| Phase      IV Labor Fees  | $31K  |
| Phase      IV Labor Fees  | $6K   |

|   |              |   |
|--------|-------------------|--------|
|   |              |   |
|   | Signature         |   |
|   |              |   |
|   |              |   |
|   | Printed      Name |   |
|   |              |   |
|   |              |   |
|   | Title             |   |
|   |              |   |
|   |              |   |
|   | Date              |   |

----

| Technicians                         |       |
|-------------------------------------|------------|
|                                |       |
| Electrical      Tech                | $80.00/hr  |
|                                |       |
| Senior      PCB Designer            | $85.00/hr  |
|                                |       |
|                                |       |
| Standard      Engineers             |       |
|                                |       |
| Associate      Engineer/Designer    | $90.00/hr  |
|                                |       |
| Engineer/Designer                   | $105.00/hr |
|                                |       |
| Senior      Engineer/Designer       | $125.00/hr |
|                                |       |
|                                |       |
| Wireless      Engineers             |       |
|                                |       |
| Associate      Wireless Engineer    | $115.00/hr |
|                                |       |
| Wireless      Engineer              | $130.00/hr |
|                                |       |
| Senior      Wireless Engineer       | $150.00/hr |
|                                |       |
|                                |       |
| ASIC      Engineers                 |       |
|                                |       |
| Associate      ASIC Design Engineer | $115.00/hr |
|                                |       |
| ASIC      Design Engineer           | $130.00/hr |
|                                |       |
| Senior      ASIC Design Engineer    | $150.00/hr |
|                                |       |
|                                |       |
| Project      Management             |       |
|                                |       |
| Project      Coordinator            | $50.00/hr  |
|                                |       |
| Project      Manager                | $125.00/hr |

----

| 1.   | For      purposes of this Exhibit, “Agreement” shall refer to the document to which      this Exhibit is attached. If any provision in this Exhibit conflicts with      the express provisions of the Agreement, the Agreement will      control. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Notwithstanding      expiration of the Agreement, all Proprietary Information (as defined      below) disclosed by a Party prior to expiration shall be treated in      accordance with the terms of this Exhibit for so long as it is maintained      in Proprietary Information status. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Proprietary      Information (as defined below) may be used by the receiving Party for the      purpose of performing and completing the Project. Proprietary Information      includes any and all current and future product information, business      information, identity of current or future business partners, technical or      financial information including but not limited to software source code,      reports, plans, documents, drawings, inventions, and proposals (a)      disclosed in tangible form clearly labeled or identified in writing as      “confidential”, “proprietary” or words of similar meaning at the time of      disclosure or (b) disclosed in non-tangible form , identified as      “confidential” or “proprietary” or  words of similar meaning at      the time of disclosure, and summarized in a writing, designated as      “confidential”, “proprietary” or words of similar meaning, and delivered      to the other Party within thirty (30) days after    disclosure. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Unless      otherwise stated in the Agreement, Proprietary Information disclosed      hereunder remains the property of the disclosing Party. Promptly after      receipt of a written request from the disclosing Party, the receiving      Party shall return all documents comprising Proprietary Information to the      disclosing Party. All Proprietary Information is provided “AS IS” without      warranty of any kind.  Neither Party is obligated to disclose or      receive Proprietary Information. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | This      Agreement imposes no obligation upon a receiving Party with respect to      Proprietary Information which (a) was in the possession of, or was known      by, the receiving Party prior to its receipt from the disclosing Party,      without an obligation to maintain its confidentiality; or (b) is or      becomes publicly available through no fault of the receiving Party; or (c)      is rightfully received by the receiving Party from a third Party without a      duty of confidentiality; or (d) is disclosed by the disclosing Party to a      third Party without a duty of confidentiality by the third Party;      or  (e) is independently developed by the receiving Party      without a breach of this Agreement; or becomes available to the receiving      Party without a breach of this Agreement; or (f) is disclosed by the      receiving Party with the disclosing Party’s prior written      approval.  If a receiving Party is required by a government body      or court of law to disclose Proprietary Information, the receiving Party      agrees to give the disclosing Party prompt written notice sufficient to      permit the disclosing Party to contest the disclosure or seek a protective      order. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | A      receiving Party shall protect Proprietary Information by using the same      degree of care, but no less than a reasonable degree of care, as it uses      to protect its own similar Proprietary Information and to prevent (a) any      use not authorized herein, (b) dissemination to any employee without a      need to know, (c) communication to any third party or (d)      publication. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Neither      Party will be precluded from independently developing technology or      pursuing business opportunities similar to those covered by this      Agreement, as long as it does no without using the Proprietary Information      of the other Party. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | Each      disclosing Party warrants that it has the right to disclose the      Proprietary Information it discloseshereunder. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------|

| 9.   | A      receiving Party will adhere to all applicable laws and regulations of the      U.S. Export Administration and will not export or re-export any technical      data or products received from a disclosing Party to any proscribed person      or country listed in the U.S. Export Administration regulations unless      properly authorized by the U.S.Government. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|