Document:

vsrs1apsc.htm

    
      

      

    

    

    
      
        

      

    

    
    

    

    Professional
Services Contract

     

    
      
        

      

    

    

    THIS AGREEMENT (this
“Agreement”) is made as of this ____ day of _________, 2007, between VPI
Engineering, a Utah corporation (“VPI”) and _______________________________, a
_________________ corporation (the “Client”).

    

    In
consideration of the Services to be performed and the payments to be made as
described herein, the parties agree as follows:

    

    1.0
Scope of Work

    

    1.1 Term
of Agreement

    This
Agreement shall govern all Services provided to Client by VPI and shall remain
in effect until this Agreement is terminated in writing pursuant to Section
3.0.

    

    1.2
Services

    Services
shall be defined to be all services desired by the Client and requested either
verbally or as defined in any applicable definition of work or similar means
(the “Services”). These services shall include, but not be limited to,
management activities such as scheduling, budgeting, and resource allocation,
engineering activities such as research, design, testing, and design
documentation, and manufacturing activities such as management of contract
manufacturing, inspection, quality assurance, documentation, and
procurement.

    

    1.3
Scheduling/Costs

    Client
understands that the Services to be performed by VPI are unique, extremely
complex, and involve a large degree of Client/VPI interaction and discussion.
Any costs and/or schedule provided shall be considered an estimate of the costs
and/or schedule required to complete the Services, and should not be interpreted
in any way as a commitment. The time actually required to complete the Services
or any portion thereof will be subject to Client availability, timely delivery
of information by Client to VPI, unforeseen design issues, design changes and
modifications requested by Client and other matters which generally affect
product design services. VPI shall use its best efforts to properly staff all
projects and to meet all agreed upon costs and schedules, but makes no guarantee
thereof in regards to cost and/or schedule.

    

    1.4 Providing Timely
Information

    Client
agrees to provide any necessary information, materials, documents and approvals
needed by VPI to perform the Services outlined in a timely manner, and not to
delay the efforts of VPI by withholding such information, materials, documents
and approvals.

    

    2.0
Payments

    

    2.1 Hourly
Rate

    All
Services shall be billed based on an hourly rate. These rates shall include all
applicable Services including management, engineering, and manufacturing and any
other services as needed to perform requested tasks.

    

    2.2 Payment
Terms

    VPI shall
issue an invoice to Client (an “Invoice”) for the amount equal to the hourly
rate multiplied by the total man hours accrued through the date of the Invoice,
plus all expenses (as defined in Subsection 2.3) incurred by VPI in connection
with the Services during the period covered by such Invoice.

    

    Unless
other arrangements are made with the accounting office, invoices shall be issued
on a monthly basis and any outstanding balances shall be due NET
30.

    

    Client
shall pay to VPI the amount set forth in each Invoice per indicated terms. Any
amount that is not paid when due shall bear interest at the rate of 1.5% per
month or portion thereof from the date such amount became due through the date
on which payment is received by VPI. All payments are to be made to
Visionary Products, Inc. at the address provided in Section 5.11
herein.  Client shall pay all expenses incurred for collection
of past due amounts.

    

    2.3 Other
Expenses

    Client
shall pay VPI for all direct expenses incurred by VPI in connection with the
Services and this Agreement, all shipping, delivery, messenger, materials,
travel costs and any other expenses that are not considered normal operating
expenses and are specific to meeting Client’s needs (collectively, the
“Expenses”).  VPI shall have the right to require Client to directly
pay any unusual or extraordinary Expenses.

    

    VPI must
obtain prior written approval from Client before incurring any expenses in
excess of approved expenses in a definition of work or similar
document.

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      

      
        
          

        

         

      

    

    3.0
Termination

    

    3.1 Termination of
Contract

    This
Agreement may be terminated by Client and/or VPI at any time provided that the
party terminating this Agreement has given the other party a fifteen (15) days
advance written notice of termination (a “Termination Notice”).

    

    Following
termination of this Agreement, Client shall pay to VPI all amounts due and
unpaid, including an amount equal to the total man hours accrued multiplied by
the hourly rate as of the date of termination of this Agreement, as determined
by VPI, plus all Expenses and non-cancelable commitments incurred by VPI prior
to or in connection with the termination of this Agreement (collectively, the
“Termination Payment”).

    

    VPI shall
prepare an Invoice with respect to the Termination Payment as soon as is
practicable following termination of this Agreement.

    

    3.2 Early
Termination

    In the
event that Client terminates Services with less than thirty (30) days advance
written notice, VPI will retain any deposit/retainer made by Client for
Services.

    

    3.3 Final
Charges

    VPI will
use reasonable efforts to minimize continuing charges and expenses associated
with any termination of this Agreement and the Services provided, however, that
VPI shall have the right to disassemble, organize, and return all materials and
equipment in connection with the Services.

    

    4.0
Intellectual Property

    

    4.1 Confidential
Information

    Client
and VPI have entered into a separate mutual non-disclosure agreement, attached
hereto, that shall govern the sharing of confidential information between the
parties.

    

    4.2 Final
Payment

    Provided
the Client has paid all amounts due to VPI, VPI will promptly disclose to Client
all inventions and discoveries made pursuant to the Services.

    

    4.3 Project
Information

    All
reports, designs, information, inventions, discoveries, and materials (“Project
Information”) developed for Client by VPI shall be property of VPI until the
completion or termination of the Services and payment in full of all amounts due
to VPI, at which time, all Project Information shall become property of
Client.

    

    Following
completion or termination of the Services and payment by Client of all amounts
due to VPI, VPI shall deliver to Client all Project Information, data, drawings,
specifications, reports, estimates, summaries, and other information and
materials that were created or obtained by VPI in performing the Services. VPI
shall have the right to retain for its records copies of all such Project
Information, data, drawings, specifications, reports, estimates, summaries, and
other information and materials.

    

    4.4 Pre-Existing
Materials

    VPI will
not knowingly incorporate any invention, improvement, development, concept,
discovery or other proprietary information owned by any third party (a “Third
Party Component”) into any Invention without Client’s prior written
permission.  If, in the performance of the Services and without notice
to the Client, VPI incorporates into any Invention a product, process, machine,
technology, or invention that was already owned by VPI (a “Pre-Existing
Material”), the Client shall have, upon completion of the project and payment in
full, a nonexclusive, royalty-free, irrevocable, perpetual, transferable,
sublicensable, worldwide license to make, have made, modify, use and sell such
prior invention as part of or in connection with such product, process or
machine.

    

    4.5 Patent, Trademark, and
Copyright

    At
Client’s sole cost and expense, VPI will perform all lawful and necessary acts,
sign all patent, trademark and copyright application processes and the
assignment thereof to Client. VPI shall assist Client in all such activities
provided that Client shall pay VPI an amount equal to VPI’s applicable hourly
rate multiplied by the total man hours expended by VPI personnel in connection
with such assistance and any Expenses incurred.

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      

      
        
          

        

      

    

    

    5.0
Other Terms & Conditions

    

    5.1
Inspections

    Client
shall have the right, upon reasonable prior notice to VPI and during VPI’s
normal business hours, to inspect and review VPI’s facilities and pertinent
technical, project and financial records with respect to the Services; provided,
however, that Client shall execute such confidentially agreements as are
required by VPI. All such inspections and reviews shall be subject to VPI’s
security and safety requirements.

    

    5.2
Guarantee

    VPI
guarantees to the Client that the Services provided will be in accordance with
industry standards (the “Guarantee”). The Guarantee shall not apply if the
Client has breached the terms of this Agreement or any definition of work or
similar document.  The Guarantee is limited to modifying the design,
research, engineering, and prototyping services as necessary and
appropriate.  THE GUARANTEE IS IN LIEU OF ANY AND ALL OTHER GUARANTEES
AND WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. All Guarantee
claims for Services rendered hereunder shall be deemed unconditionally waived by
Client unless Client notifies VPI in writing of a claim within ninety (90) days
after completion of the Services. VPI will not be liable for incidental,
special, exemplary, consequential, or punitive damages. VPI’s liability under
this paragraph shall in no event exceed the amount of Fees actually received by
VPI for the specific Services rendered.

    

    5.3
Disclaimers

    VPI makes
no representations or warranties (1) regarding any actual or potential
infringement of any invention, discovery, design or product produced pursuant to
the Services (collectively, the “Products”) on any intellectual property or
other rights of any person or entity, or (2) regarding any prior development or
the current existence of any invention, discovery, design, or product similar to
the Products. VPI expressly disclaims all liability and responsibility regarding
(A) safety testing or warnings necessary or desirable in connection with any of
the Products, and (B) compliance with any federal, state, or local laws with
respect to the Products. VPI shall have no liability or responsibility to
conduct any investigation or inquiry with respect to the foregoing; provided,
however, that VPI shall disclose to the Client any infringements upon the rights
or patents of others and any violations of federal, state, or local laws of
which VPI has actual knowledge.

    

    5.4
Release/Indemnification

    Client
hereby releases and forever discharges VPI and shall indemnify, protect, defend,
and hold VPI and its shareholders, directors, officers, employees, and agents
harmless from and against any and all claims, actions, suits, proceedings,
obligations, liabilities, orders, damages, costs, and expenses (including
attorneys’ and paralegals’ fees and expenses) resulting from, arising out of,
relating to, or in connection with (1) any violation or infringements upon the
rights or patents, trademarks, trade designs, copyrights, or any other
intellectual property rights of any individual or entity or,  (2) any
bodily injury or property damage with respect to the Services or any invention,
discovery, design, or product in connection with the Services provided, however,
that the foregoing indemnity shall not apply in the event  that such
claims, actions, suits, proceedings, obligations, liabilities, orders, damages,
costs and expenses were caused by the gross negligence or willful misconduct of
VPI in performing the Services.  The provisions of this Section 5.4
shall survive any termination of this Agreement.

    

    5.5
Deliveries

    All
deliveries from VPI to Client shall be F.O.B. shipping point and title and risk
of loss with respect to such deliveries shall pass to Client at the shipping
point.

    

    5.6
Personnel

    Client
acknowledges and agrees that VPI has invested significant time and resources in
the recruitment and training of its employees.  Therefore, to the
extent permitted by law, Client agrees that during the term of this Agreement
and for a period of two years following the termination of this Agreement,
Client will not directly or indirectly solicit or seek to employ any person who
is or has been an employee of VPI at any time during the term of this agreement
except with the written permission of the other party. In the event that Client
breaches the foregoing restriction, Client will pay to VPI, as liquidated
damages and not a penalty, within thirty (30) days of receipt of a notice of
breach, a sum equal to one (1) year of salary or fees VPI would pay to such
employee.

    

    5.7
Waiver

    Any
waiver by any party of its rights under this Agreement shall be in writing and
signed by the party waiving such right. The failure of either party to enforce
any of the provisions of this Agreement or any rights in respect thereto, or to
exercise any election herein provided, shall not waive such provisions, rights,
or elections or subsequent breaches thereof.

    

    5.8 Force
Majeure

    VPI shall
not be liable for delays in or non-performance of the Services as a result of
strikes, lockouts, fires, acts of terrorism or war conditions, accidents,
foreign or domestic government controls or other actions (including controls or
actions related to heightened terrorism alert status), embargoes or other causes
beyond VPI's control.

    

    5.9
Assignments

    This
Agreement and the rights and obligations in connection herewith and therewith
may not be assigned by either party without the prior written consent of the
other party; provided, however, that either party may, without such consent,
assign this Agreement and its rights and obligations hereunder in connection
with the transfer or sale of all or substantially all of its business, or in the
event of its merger, consolidation, change in control or similar
transaction.  Any permitted assignee shall assume all obligations of
its assignor under this Agreement. Any purported assignment or transfer in
violation of this Section 5.9 shall be null and void. This Agreement shall be
binding upon and inure to the benefit of the parties and their respective
representatives, successors, and assigns.

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      

      
        
          

        

      

    

    

    5.10
Notices

    Any
notice, demand, request or other communication permitted or required under this
Agreement shall be in writing and shall be deemed to have been given as of the
date so delivered, if personally served; as of the date so sent if transmitted
by facsimile and receipt is confirmed by the facsimile operator of the
recipient; as of the date of sent if sent by electronic mail and receipt is
acknowledged by the recipient; one day after the date so sent if delivered by
overnight courier service; or three days after the date so mailed if mailed by
certified mail, return receipt requested, addressed as follows:

    

    
      	
              If
      to VPI:

            	
              VPI
      Engineering

            
	 
      	
              11814
      South Election Road, Suite 200

            
	 
      	
              Draper,
      UT  84020

            
	 
      	
              (801)
      495-2310

            
	 
      	
              Facsimile:
      (801) 495-2255

            
	 
      	
              E-mail:
      __________________

            
	 
      	 
      
	
              If
      to Client:

            	
              ____________________________________

            
	 
      	
              ____________________________________

            
	 
      	
              ____________________________________

            
	 
      	
              Facsimile:
      ____________________________ 

            
	 
      	
              E-mail:
      ______________________________

            

    

    

    or such
other addresses, facsimile numbers, or electronic mail address as shall be
furnished in writing by any party in the manner for giving notices
hereunder.

    

    5.11
Conflict

    This
Agreement constitutes the entire agreement and understanding between the parties
with respect to the Services and supercedes all previous negotiations,
agreements, and representations between the parties, written or oral, all of
which shall be deemed to be merged into this Agreement. In the event of any
conflict between the terms of this Agreement and any subsequent signed
agreements between both parties, the latter shall govern.  If any
provisions of this Agreement are determined to be invalid or unenforceable, the
validity and effect of the other provisions of this Agreement shall not be
affected thereby.

    

    5.12 Governing
Law

    This
Agreement shall be governed and construed in accordance with the laws of the
State of Utah. In the event of any dispute, action, or proceeding in connection
with this Agreement, the Services or any documents, instruments or transactions
in connection therewith, the non-prevailing party shall pay all costs and
expenses (including reasonable attorneys’ and paralegals’ fees and expenses and
arbitration fees and expenses) incurred by the prevailing party in connection
with such dispute, action, or proceeding.

    

    5.13
Disputes

    This
section of the Agreement includes each party’s obligations in an effort to
minimize disputes arising out of this Agreement and to aid in a mutually
satisfactory resolution of such disputes.

    (a)           Informal Dispute
Resolution.  Client and VPI agree, in good faith, to attempt to
resolve disputes, controversies, or claims arising out of this Agreement
(“Claim”) prior to pursuing outside intervention.  If the parties
cannot come to a mutually agreeable resolution of the Claim within ten (10)
business days following commencement of such negotiations, then such Claim will
be referred to members of each party's executive management (each such member a
"Representative") for resolution, which referral shall be evidenced by a written
notice from either party to the other (the “Referral”). The parties'
Representatives shall promptly meet following such a Referral to attempt to
resolve the Claim.  If the Representatives have not reached a mutually
agreeable resolution of the Claim within ten (10) business days after their
initial meeting on the subject of such Claim, then such Claim may, by way of
written notice of either party to the other, be submitted to arbitration as set
forth below.

    (b)           Arbitration.  Any
Claim arising out of or relating to the provision of the Services shall be
settled by binding arbitration administered by the American Arbitration
Association (“AAA”) in accordance with its Commercial Arbitration Rules and, for
claims of $250,000 or greater, it’s Optional Procedures for Large, Complex
Commercial Disputes.  For Claims less than $250,000, the arbitration
shall be heard and determined by a single arbitrator with experience with
technology disputes in accordance with the rules of the AAA. For disputes
$250,000 or greater, the arbitration shall be heard and determined by a panel of
three (3) arbitrators selected as described below, two of whom are specifically
engaged in the practice of law with the third possessing special knowledge and
experience in the subject matter of the claim. During arbitration the parties
shall equally share the arbitrators’ fees. The arbitration and all related
proceedings and discovery shall take place pursuant to a protective order
entered by the arbitrators that adequately protects the confidential nature of
the parties’ proprietary and confidential information.  Either party
may, without waiving any remedy under this Agreement, seek from any court of
competent jurisdiction any interim or provisional relief that such party deems
necessary to protect its Confidential Information and property rights pending
the establishment of the arbitral tribunal (or pending the arbitral tribunal's
determination of the merits of the Claim).

     (c)           Where
three (3) arbitrators will be appointed, each party to this contract shall
appoint an arbitrator, specifically engaged in the practice of law, in
accordance with the AAA rules.  The two arbitrators so appointed shall
thereupon select a third arbitrator possessing special knowledge and experience
in the subject matter of the claim.  If the arbitrators appointed by
the parties shall fail to select a third arbitrator within two weeks of their
appointment, a third arbitrator shall be selected in accordance with the then
current rules and regulations of the AAA. The written decision of the three (3)
arbitrators, or any two of them, shall be final and binding upon the parties
thereto, and judgment may be entered thereon in the applicable district court of
the State of Utah.

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      

      
        
          

        

         

      

    

    6.0
Commencement

    A signed
original of this Agreement, any applicable purchase order or definition of work
and any retainer payment required by VPI shall be required before VPI shall
commence performing the Services.

    

    
    

     

    
      	 __________________________ (Client)	 	 VPI Engineering (VPI)
	 	 	 
	 	 	 
	 	 	 
	 Signature:_____________________________	 	 Signature:_____________________________
	 	 	 
	 Authorizing Agent: ______________________ 	 	 Authorizing Agent: Morgan Taylor
	 	 	 
	 Title: ________________________________	 	 Title: President
	 	 	 
	 Date: (MM/DD/YY)_____________________	 	

               Date:
      (MM/DD/YY)_____________________

            

    

    
 

    
       

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

     

    
      
        

        

      

      

      
        	 
      	
                11814
      S Election Rd.

                Suite
      200

                Draper,
      UT 84020

              

      

      

      Bluetooth
Class I Update Estimate

       

      To:       VoluSol

      5095
West 2100 South

      Salt
Lake City, UT 84120

      Phone:
(801) 974-9474

      Fax:
(801) 974-9553

       

      Purpose

      Volusol
desires to implement Bluetooth Class I functionality on the Wivo
watch.

       

      Statement
of Work

      This
quote encompasses the following tasks:

       

      
        	
                 
      

              	
                ·

              	
                Schematic
      changes required to implement Class 1
  functionality:

              

      

      
        	
                 
      

              	
                ·

              	
                Add
      RF transmit signal amplifier

              

      

      
        	
                 
      

              	
                ·

              	
                Add
      low noise receive signal amplifier

              

      

      
        	
                 
      

              	
                ·

              	
                Add
      two RF switches

              

      

      
        	
                 
      

              	
                ·

              	
                Add
      ceramic bandpass filter to eliminate 2.4GHz harmonics (necessary for FCC
      compliance)

              

      

      
        	
                 
      

              	
                ·

              	
                Implement
      discrete auxiliary filter (necessary to ensure FCC
    compliance)

              

      

      
        	
                 
      

              	
                ·

              	
                Add
      voltage regulator to power RF
amplifier

              

      

      
        	
                 
      

              	
                ·

              	
                Add
      approximately 25 resistors, capacitors, and
  inductors

              

      

      
        	
                 
      

              	
                ·

              	
                Implement
      three additional lines from processor to control RF switches and amplifier
      gain

              

      

      
        	
                 
      

              	
                ·

              	
                PCB
      layout changes required to implement Class 1
  functionality

              

      

      
        	
                 
      

              	
                ·

              	
                Manufacture
      (3) PCBA Prototypes

              

      

      
        	
                 
      

              	
                ·

              	
                Firmware
      changes required to implement Class 1
  functionality

              

      

      
        	
                 
      

              	
                ·

              	
                Firmware
      changes to appropriately control RF switches and RF amplifier power
      output

              

      

      
        	
                 
      

              	
                ·

              	
                Additional
      FCC compliance testing required for Class 1
  functionality

              

      

       

      Assumptions

      
        	
                 
      

              	
                ·

              	
                This
      quote assumes that the updated PCB layout will require an additional board
      fabrication.

              

      

       

      
        	
                 
      

              	
                ·

              	
                An
      inherent risk with implementing the class I functionality is the
      additional components that will be required on the board.  It is
      possible that all the required components will be able to fit on the
      current board footprint, however, this estimate does not include
      mechanical design changes to accommodate a larger
  PCB.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Adding
      a high power RF transmitter poses risks for the sound quality of the
      device, the ability to pass FCC regulatory requirements without
      significant testing, and will have a significant impact on the battery
      life of the watch.

              

      

       

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

      
        
          	 
      	
                  11814
      S Election Rd.

                  Suite
      200

                  Draper,
      UT 84020

                

        

         

      

      Estimated
Costs

       

      
        	
                Description

              	
                Labor

              	
                Expenses

              	
                Total

              
	
                Electronics
      Design Changes and Schematic Design

              	
                $17,280

              	 
      	
                $17,280

              
	
                Manufacture
      (3) Prototype Boards

              	
                $3,780

              	
                $6,000

              	
                $9,780

              
	
                Firmware
      Changes

              	
                $4,500

              	 
      	
                $4,500

              
	
                Additional
      FCC Regulatory Testing

              	
                $5,400

              	
                $4,000

              	
                $9,400

              
	 	 	 	 
	
                Estimate
      Costs

              	 
      	 
      	
                $40,960

              

      

       

      This
proposal is valid for 30 days. All technical information, specifications, costs,
schedules, and all related materials quoted, expressed, or implied in this
document are results of our judgment at this point in time and are only
estimates based upon the information available to us. We reserve the right to
modify such information as we find necessary based on client requests, available
technology, and other eventualities. We will communicate any such changes to the
client and obtain any required approval.

       

      Schedule

       

      

       

       

      Deliverables

       

      
        	
                 
      

              	
                ·

              	
                Bluetooth
      Class I Functionality

              

      

      
        	
                 
      

              	
                ·

              	
                (3)
      Prototype PCBAs

              

      

      
        	
                 
      

              	
                ·

              	
                Bluetooth
      Class I FCC Certification

              

      

       

      Terms

      
        	
                 
      

              	
                ·

              	
                Invoices
      will be generated on a monthly basis for time and materials expended on
      the project.

              

      

      
        	
                 
      

              	
                ·

              	
                Net
      15

              

      

      

      The
following is needed to begin work on the project:

      
        	
                 
      

              	
                ·

              	
                Quote
      signed or a purchase order from customer referring to this
      document

              

      

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

       

      Agreement

      Customer
authorizes VPI to begin the work outlined in this proposal.

      

      Signed:   ____________________________________

      By:         ____________________________________

      Title:       ____________________________________

      Date:      ____________________________________

      

       

      This
proposal is valid for 30 days. All technical information, specifications, costs,
schedules, and all related materials quoted, expressed, or implied in this
document are results of our judgment at this point in time and are only
estimates based upon the information available to us. We reserve the right to
modify such information as we find necessary based on client requests, available
technology, and other eventualities. We will communicate any such changes to the
client and obtain any required approval.

       

       

      The
information contained in this document is the sole property of VPI Engineering.
Reproduction in part or whole without the written permission of VPI Engineering
is prohibited. All rights reserved.

       

      Services
for this proposal are covered under the Professional Services Contract between
VoluSol and VPI dated September 24th,
2007.

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        
          

          

        

        
          

          
            
              

            

          

        

         

         

        

         

         

        

         

         

        WiVo
Watch and Cell Phone Charging Cradle

         

         

        Proposal

         

         

         

         

         

        

         

         

        A project
proposal prepared for

         

        

        VoluSol

        5095
West 2100 South

        Salt
Lake City, UT 84120

        Phone
(801)974-9474

        Fax
(801)974-9553

        

        
          
            
               

            

            
               

              
                

              

            

            
               

            

          

        

        

        
          

          
            
              

            

          

        

        

         

        Change Log

        
          	
                  Release

                	
                  Date

                	
                  Prepared
      by

                	
                  Description
      of Changes

                
	
                  01

                	
                  10/10/2007

                	
                  Gary
      Olsen

                	
                  Initial
      release

                
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

        

         

         

        

        
          
            
               

            

            
              2

              
                

              

            

            
               

            

          

        

        

        
          

          
            
              

            

          

        

         

        Table of Contents

         

        

        
          	
                  Change
      Log

                	
                  2

                
	
                  1

                	 
      	
                  System
      Requirements

                	
                  4

                
	
                  2

                	 
      	
                  Options

                	
                  4

                
	 
      	
                  2.1

                	
                  Certifications/Testing

                	
                  4

                
	 	
                  2.2 

                	
                  Manufacturing

                	4
	
                  3

                	 
      	
                  Project
      Outline

                	
                  5

                
	 
      	
                  3.1

                	
                  Task
      I – System Design

                	
                  5

                
	 
      	
                  3.2

                	
                  Task
      II – Electronics Design

                	
                  5

                
	 
      	
                  3.3

                	
                  Task
      III – Mechanical Design

                	
                  6

                
	 
      	
                  3.4

                	
                  Task
      IV – Production Design

                	
                  6

                
	
                  4

                	 
      	
                  Estimated
      Cost

                	
                  7

                
	
                  5

                	 
      	
                  Schedule

                	
                  7

                
	
                  6

                	 
      	
                  Project
      Terms

                	
                  8

                

        

         

        

        

        
          
            
               

            

            
              3

              
                

              

            

            
               

            

          

        

         

        
          

          
            
              

            

          

        

         

        
          	
                  1

                	
                  System Requirements

                

        

         

        VPI
proposes the development of a charging cradle that charges the WiVo
watch.  The following are the system requirements that are assumed in
the development of the charging cradle:

         

        
          	
                   
      

                	
                  ·

                	
                  Charger
      will charge the WiVo watch via charging pips or
  contacts.

                

        

         

        
          	
                   
      

                	
                  ·

                	
                  The
      WiVo watch will rest in a cradle to be
charged.

                

        

         

        
          	
                   
      

                	
                  ·

                	
                  LED
      indicators will indicate charging status and fully charged/ready status
      for the watch.

                

        

         

        
          	
                   
      

                	
                  ·

                	
                  It
      is anticipated that the design will require one PCB containing charging
      circuitry and watch charging
contacts.

                

        

         

        
          	
                   
      

                	
                  ·

                	
                  The
      WiVo Charging Cradle will be designed for use in indoor environmental
      conditions

                

        

         

         

        
          	
                  2

                	
                  Options

                

        

         

        The
following options can be provided at additional cost. At VoluSol’s request, VPI
can provide a quote for any of the items listed here or any additional
requirements.

         

        
          	
                  2.1

                	
                  Certifications/Testing

                

        

         

        VPI can
support Volusol with regulatory testing and certifications such as CE, UL, CSA,
etc.  Support for regulatory certifications and testing is not
included in this proposal.

         

        
          	
                  2.2

                	
                  Manufacturing

                

        

         

        VPI can
provide a quote for manufacturing and assembling the charging
cradles.

         

         

        
          
             

          

          
            4

            
              

            

          

          
             

          

        

         

        
          

          
            
              

            

          

        

         

        
          	
                  

                    3
      

                  

                	Project
      Outline

        

         

        The
project will be divided into the following major tasks.

         

        
          	
                  ·

                	
                  Task I –

                	
                  System
      Design

                

        

        
          	
                  ·

                	
                  Task II
–

                	
                  Electronics
      Design

                

        

        
          	
                  ·

                	
                  Task III
    –

                	
                  Mechanical
      Design

                

        

        
          	
                  ·

                	
                  Task IV
–

                	
                  Production
      Design

                

        

         

        VPI and
the customer may modify these major tasks as the project progresses and as
determined in subsequent negotiations.

         

        
          	
                  3.1

                	
                  Task I – System Design

                

        

         

        VPI will
create a System Specification document that outlines the overall product
requirements, high-level system design, analysis of potential design solutions,
and recommendations.

         

        The
system design phase will also include research and selection of many of the
initial components. Wherever possible, components will be selected based on low
cost, short lead times, and multiple sources.

         

        VPI will
support Rocketship with the industrial design of the charging
cradle.

         

        Tasks

         

        For
a detailed task list and project flow, please refer to the attached project
schedule.

        
          	
                   
      

                	
                  ·

                	
                  Develop
      the System Hardware Specification

                

        

        
          	
                   
      

                	
                  ·

                	
                  Research
      and Selection of Major Components

                

        

        
          	
                   
      

                	
                  ·

                	
                  Design
      Considerations for
Manufacturability

                

        

         

        Deliverables

        
          	
                   
      

                	
                  ·

                	
                  Document:
      System Hardware Specification

                

        

         

        
          	
                  3.2

                	
                  Task II – Electronics
Design

                

        

         

        VPI will
design the charging circuit. Electrical designs will follow the design
guidelines generated in the System Specification and take into consideration
manufacturability and cost optimization. VPI will create a schematic of the
electronics. An internal design review will be conducted to review the design of
the electronics. The electronics will be laid out in a PCB to meet
specifications of the selected industrial design.  Electrical
prototypes (PCBAs, connectors) will be built and then tested and evaluated for
board level functionality and charging functionality.

         

        

        
          
            
               

            

            
              5

              
                

              

            

            
               

            

          

        

        

        
           

          
            

            
              
                

              

            

          

          Tasks

        

         

        For
a detailed task list and project flow, please refer to the attached project
schedule.

        
          	
                   
      

                	
                  ·

                	
                  Design
      Electrical System

                

        

        
          	
                   
      

                	
                  ·

                	
                  Design
      Review

                

        

        
          	
                   
      

                	
                  ·

                	
                  PCB
      Layout

                

        

        
          	
                   
      

                	
                  ·

                	
                  Manufacture
      (3) Electrical System Prototypes

                

        

        
          	
                   
      

                	
                  ·

                	
                  Test
      Boards

                

        

         

        Deliverables

        
          	
                   
      

                	
                  ·

                	
                  (3)
      Electrical System Prototypes

                

        

         

        
          	
                  3.3

                	
                  Task III – Mechanical
Design

                

        

         

        After
completion of the industrial design by Rocketship, VPI will design the internal
mechanical features and structure.  Mechanical designs will be
reviewed in an internal design review. SLA prototypes of the charging cradle
will be created and the electrical system and SLA prototypes will be assembled
together.  These full system prototypes will be used for additional
testing of mechanical form, fit, and function and for electronics
functionality.  Any required design changes will be made and an
internal design review of the full system will be conducted.

         

        Tooling
for the charging cradle will be initiated in conjunction with the watch
tooling.  (Note: This proposal does not
include the cost for plastic injection mold tooling.) QA measures will be taken
to assure the quality of the plastic injection molds.  Assembly
drawings will be created.

         

        Tasks

         

        For
a detailed task list and project flow, please refer to the attached project
schedule.

        
          	
                   
      

                	
                  ·

                	
                  Mechanical
      Design

                

        

        
          	
                   
      

                	
                  ·

                	
                  Design
      Review

                

        

        
          	
                   
      

                	
                  ·

                	
                  Build
      SLA Prototypes

                

        

        
          	
                   
      

                	
                  ·

                	
                  Assemble
      and Test Full System Prototypes

                

        

        
          	
                   
      

                	
                  ·

                	
                  Update
      Mechanical Design

                

        

        
          	
                   
      

                	
                  ·

                	
                  Design
      Review

                

        

        
          	
                   
      

                	
                  ·

                	
                  Tooling

                

        

        
          	
                   
      

                	
                  ·

                	
                  QA

                

        

        
          	
                   
      

                	
                  ·

                	
                  Create
      Assembly Drawings

                

        

         

        Deliverables

        
          	
                   
      

                	
                  ·

                	
                  (3)
      Full System Prototypes

                

        

         

        
          	
                  3.4

                	
                  Task IV – Production
Design

                

        

         

        Manufacturing
process design will be completed. VPI will release all applicable drawings for
the project and create a Product Design Package (PDP) that will contain (where
applicable) both electronic and paper copies of the System Specification, final
designs of the electrical system, schematics, bill of materials, assembly
drawings, mechanical drawings and solids, and final designs and/or
specifications of each component. A Product Manufacturing Package (PMP) will be
assembled to be delivered to a contract manufacturer which will contain the
manufacturing process, assembly drawings, QA measures, and applicable
manufacturing instructions.

         

        The WiVo
charging cradle design will then be released for pre-production.

         

        

        
          
            
               

            

            
              6

              
                

              

            

            
               

            

          

        

        

        
           

          
            

            
              
                

              

            

          

          Tasks

        

         

        For
a detailed task list and project flow, please refer to the attached project
schedule.

        
          	
                   
      

                	
                  ·

                	
                  Design
      Manufacturing Process

                

        

        
          	
                   
      

                	
                  ·

                	
                  Release
      Drawings

                

        

        
          	
                   
      

                	
                  ·

                	
                  Create
      PDP

                

        

        
          	
                   
      

                	
                  ·

                	
                  Create
      PMP

                

        

         

        Deliverables

        
          	
                   
      

                	
                  ·

                	
                  Product
      Design Package

                

        

        
          	
                   
      

                	
                  ·

                	
                  Product
      Manufacturing Package

                

        

        

         

        
          	
                  4

                	
                  Estimated Cost

                

        

         

        
          	
                  Description

                	
                  Labor

                	
                  Expenses

                
	 
      	 
      	 
      
	
                  Task
      I – System Design

                	
                  $8,775

                	
                  $0

                
	
                  Task
      II – Electronics Design

                	
                  $18,315

                	
                  $3,000

                
	
                  Task
      III – Mechanical Design

                	
                  $26,955

                	
                  $1,500

                
	
                  Task
      IV – Production Design

                	
                  $4,725

                	
                  $0

                
	
                  Total
      Estimated Cost

                	
                  $58,770

                	
                  $4,500

                
	 
      	 
      	 
      

        

         

        All tasks
are time and materials estimates. Actual costs will vary. VPI reserves the right
to re-quote any tasks as specifications and tasks change.

         

         

        
          	
                  5

                	
                  Schedule

                

        

         

        See the
attached project schedule V009601.

         

        

        

        
          
            
               

            

            
              7

              
                

              

            

            
               

            

          

        

        

        
           

          
            

            
              
                

              

            

          

           

        

        
          	
                  6

                	
                  Project Terms

                

        

        

        The
following are needed to begin work on the project:

        
          	
                   
      

                	
                  ·

                	
                  Proposal
      signed or a purchase order from customer referring to this
      document

                

        

         

        Payment
Terms

        
          	
                   
      

                	
                  ·

                	
                  Monthly
      billing for labor and expenses incurred each
  month

                

        

        
          	
                   
      

                	
                  ·

                	
                  Net
      15

                

        

        

        Customer
authorizes VPI to begin the work outlined in this proposal.

        

        

        Client
Company: _____________________________________                                                                                                          

        

        Authorizing
Agent:  ___________________________________

        

        Title: 
_____________________________________________

        

        Signature:
  _________________________________________

        

        Date:
(MM/DD/YY)  _________________________________

         

        -------------------

         

        This
proposal is valid for 30 days. All technical information, specifications, costs,
schedules, and all related materials quoted, expressed, or implied in this
document are results of our judgment at this point in time and are only
estimates based upon the information available to us. We reserve the right to
modify such information as we find necessary based on client requests, available
technology, and other eventualities. We will communicate any such changes to the
client and obtain any required approval.

         

        The
information contained in this document is the sole property of Visionary
Products Inc. Reproduction in part or whole without the written permission of
Visionary Products Inc. is prohibited. All rights reserved.

         

        Services
for this proposal are covered under the Professional Services Contract between
VoluSol and VPI dated September 24th,
2007.

         

         

      

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      
        

        

      

      

      
        
          

          
            
              

            

          

        

      

       

       

      

       

       

      

       

       

      WiVo
Bluetooth Speakerphone Watch

       

       

      Development
Proposal

       

       

      

       

       

       

      

       

       

      A project
proposal prepared for

       

      

       

      
      

      VoluSol

      5095
West 2100 South

      Salt
Lake City, UT 84120

      Phone
(801)974-9474

      Fax
(801)974-9553

      

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      
        
          
            

            
              
                

              

            

          

        

         

      

      Change Log

      
        	
                Release

              	
                Date

              	
                Prepared
      by

              	
                Description
      of Changes

              
	
                01

              	
                9-7-2007

              	
                Gary
      Olsen

              	
                Initial
      release

              
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

      

       

       

      

      
        
          
             

          

          
            2

            
              

            

          

          
             

          

        

      

       

      
        
          

          
            
              

            

          

        

      

       

      Table of Contents

       

      
        	
                Change
      Log

              	
                2

              
	
                1

              	 
      	
                Background

              	
                4

              
	
                2

              	 
      	
                System
      Requirements

              	
                4

              
	
                 
      

              	
                2.1

              	
                Objectives

              	
                4

              
	 
      	
                2.2

              	
                System
      Context

              	
                5

              
	 
      	
                2.3

              	
                Electrical
      System Architecture

              	
                6

              
	 
      	
                2.4

              	
                Regulatory
      Requirements

              	
                7

              
	 
      	
                2.5

              	
                Mechanical/Environmental
      Requirements

              	
                7

              
	 
      	
                2.6

              	
                Firmware

              	
                8

              
	
                3

              	 
      	
                Options

              	
                8

              
	 
      	
                3.1

              	
                Additional
      Certifications/Testing

              	
                8

              
	 
      	
                3.2

              	
                Extended
      Functions Firmware

              	
                9

              
	
                4

              	 
      	
                Project
      Outline

              	
                10

              
	 
      	
                4.1

              	
                Phase
      I - System Design

              	
                10

              
	 
      	
                4.2

              	
                Phase
      II -Prototype Design

              	
                11

              
	 
      	
                4.3

              	
                Phase
      III - Final Design/Pre-Production

              	
                12

              
	
                5

              	 
      	
                Estimated
      Cost

              	
                13

              
	
                6

              	 
      	
                Schedule

              	
                14

              
	
                7

              	 
      	
                Project
      Terms

              	
                15

              

      

       

      

      
        
          
             

          

          
            3

            
              

            

          

          
             

          

        

      

      

      
        
          

          
            
              

            

          

        

      

       

      
        	
                1

              	
                Background

              

      

       

      VoluSol
has researched various options for developing a product that helps the elderly
in difficult situations to contact emergency personnel or family if they need
assistance.  This product is a combination of a GPS-enabled cell phone
and a wristwatch with a built-in Bluetooth speakerphone called WiVo (short for
With Voice).  A person wearing the wristwatch would be able to push a
button to activate the cell phone and use the cell phone via the Bluetooth
speakerphone functionality to communicate their predicament.

       

      Eventually,
it is the goal of Volusol to incorporate additional technologies in the
wristwatch, such as heart rate monitoring and monitoring of other vital
signs.

       

      This
proposal addresses the base development of the wristwatch with Bluetooth
speakerphone capability.

       

      
        	
                2

              	
                System Requirements

              

      

       

      The
following goals and system requirements of the wristwatch portion of the WiVo
system are set forth below.

       

      
        	
                2.1

              	
                Objectives

              

      

       

      Some of
the objectives for the WiVo watch are as follows:

       

      
        	
                 
      

              	
                ·

              	
                Watch
      will provide speakerphone capability for a cell phone via
      Bluetooth.  An example of the type of functionality desired is
      found in the Mvox Duo Communicator Bluetooth
      headset/speakerphone.

              

      

      
        	
                 
      

              	
                ·

              	
                Speakerphone
      to provide clear audio that can be heard by someone who may have
      experienced partial hearing loss.

              

      

      
        	
                 
      

              	
                ·

              	
                Display
      to provide feed back to users and time
  functions.

              

      

      
        	
                 
      

              	
                ·

              	
                Large
      characters will be used on the display to help those with some vision
      impairments.

              

      

      
        	
                 
      

              	
                ·

              	
                Watch
      design goal is to eliminate mechanical acoustic coupling to the extent
      possible.

              

      

      
        	
                 
      

              	
                ·

              	
                Use
      off-the-shelf technology to provide echo and noise
      cancellation.

              

      

      
        	
                 
      

              	
                ·

              	
                Rechargeable
      watch with warnings when the battery is getting
  low.

              

      

      
        	
                 
      

              	
                ·

              	
                Industrial
      design that is attractive to the elderly market, particularly elderly
      women.

              

      

      
        	
                 
      

              	
                ·

              	
                Incorporate
      motion sensors to help predict motions that indicate a person has
      fallen.

              

      

      

      

      
        
          
             

          

          
            4

            
              

            

          

          
             

          

        

      

       

      
        
          

          
            
              

            

             

          

        

      

      
        	
                2.2

              	
                System Context

              

      

       

      

       

      Figure
1: System Context Diagram

       

      

       

      
        	
                2.2.1

              	
                Use
      Cases

              

      

       

      The
following use-case table identifies the entities that use the system and for
what purposes.

       

      
        	
                Actor

              	
                Use
      Case

              	
                Description

              
	
                User

              	
                Presses
      Panic Button

              	
                A
      call to the call center is initiated.

              
	
                User

              	
                Communication

              	
                The
      user makes emergency calls using a cell phone via the wireless WiVo watch
      on their wrist.

              
	
                Watch

              	
                Speakerphone

              	
                The
      WiVo watch will act as a wireless speakerphone and manage the transmission
      and reception of audio from the cell phone via
  Bluetooth.

              
	
                Watch

              	
                Time
      and Battery Status

              	
                When
      not being used for emergency communication, the watch will display the
      current time and battery status.

              
	
                Cell
      Phone

              	
                GSM

              	
                The
      cell phone will automatically dial the call center when the panic button
      is pressed.

              
	
                Cell
      Phone

              	
                GPS

              	
                The
      cell phone will transmit GPS location to the call
  center.

              
	
                Call
      Center

              	
                Communication

              	
                Call
      Center personnel will communicate with the user and provide
      assistance.

              

      

       

      

      
        
          
             

          

          
            5

            
              

            

          

          
             

          

        

      

       

      
        
          

          
            
              

            

          

        

      

       

      
        	
                2.3

              	
                Electrical System
Architecture

              

      

       

      The
following represents the current system architecture for the electrical system
and may change through the project to achieve the system requirements and
goals.

       

      

       

      Figure
2: Electrical System Diagram

       

       

      
        	
                2.3.1

              	
                Processing
      PCBA

              

      

       

      The
Processing PCBA will utilize the CSR BC05 processor. This processor’s core
functionality is Bluetooth communication.  It is anticipated that this
processor will have enough capacity to manage all aspects of the watch
system.

       

      The
Processing PCBA will also have internal support circuitry to monitor and charge
the Li-Ion battery from external power provided through a charging
cradle.

       

      
        	
                2.3.2

              	
                Battery
      and Power Management

              

      

       

      The
system will utilize an internal Li-Ion rechargeable battery pack. The battery
will be recharged in-system. Power management schemes will be implemented to
maximize battery life while maintaining required performance.

       

      
        	
                2.3.3

              	
                OLED
      Display

              

      

       

      The watch
will be designed with a 4-color OLED display.

       

      
        	
                 
      

              	
                ·

              	
                Off-the-shelf
      options will be explored.

              

      

      
        	
                 
      

              	
                ·

              	
                Serial
      interface (3 lines) is preferred in order to avoid going to a
      multi-processor model.

              

      

       

      
        	
                2.3.4

              	
                Speaker

              

      

       

      The
system will have a speaker that will provide sufficient audio quality for voice
reproduction.

       

      

      
        
          
             

          

          
            6

            
              

            

          

          
             

          

        

      

       

      
        
          

          
            
              

            

             

          

        

      

      
        	
                2.3.5

              	
                Microphone(s)

              

      

       

      A
microphone will be selected that has similar features to microphones used in
cell phone headsets.  Research will be conducted to determine whether
one or two microphones will be incorporated in the watch design.

       

      
        	
                2.3.6

              	
                Buttons

              

      

       

      A panic
button will be incorporated in the system design that will trigger the
initiation of a call to the Call Center on the cell phone.  Additional
buttons for other watch functions will be designed as determined by
VoluSol.

       

      
        	
                2.3.7

              	
                Accelerometer

              

      

       

      An
accelerometer will be incorporated in the design of the WiVo watch to measure
movement and/or impacts.

       

      
        	
                2.4

              	
                Regulatory
Requirements

              

      

       

      As part
of this proposal, VPI will manage the FCC certification of the WiVo
watch.

       

      Additional
safety certifications can be obtained, but are not included in this
proposal.

       

      
        	
                2.5

              	
                Mechanical/Environmental
  Requirements

              

      

       

      The WiVo
wristwatch will be designed for use in indoor and outdoor
environments.

       

      
        	
                2.5.1

              	
                Size

              

      

       

      The watch
will be designed to be as small as can accommodate the electronics, connectors,
battery, and display. Actual size will be determined during the industrial and
mechanical design phases of the project.

       

      
        	
                2.5.2

              	
                Environmental
      conditions

              

      

       

      
        	
                 
      

              	
                ·

              	
                Operating
      Temperature: +5° C to +50° C

              

      

      
        	
                 
      

              	
                ·

              	
                Storage/Shipping
      Temperature:  -20° C to +60°
      C

              

      

      
        	
                 
      

              	
                ·

              	
                Operating
      Altitude:  Up to 8000 feet/2400
meters

              

      

       

      
        	
                2.5.3

              	
                Materials
      of construction

              

      

       

      
        	
                 
      

              	
                ·

              	
                Materials
      will be selected during the industrial design
  phase.

              

      

      
        	
                 
      

              	
                ·

              	
                Plastic
      materials will be selected from readily available off-the-shelf
      resins.

              

      

      
        	
                 
      

              	
                ·

              	
                Plastic
      surface textures and colors will be reviewed and approved by VoluSol prior
      to final manufacturing
documentation.

              

      

      
        	
                 
      

              	
                ·

              	
                Housing
      to be:

              

      

      
        	
                 
      

              	
                o

              	
                Scratch
      and dent resistant through texture and material
  selection

              

      

      
        	
                 
      

              	
                o

              	
                Non-fading
      and durable color

              

      

      
        	
                 
      

              	
                o

              	
                Cleanable
      with mild detergent

              

      

      

      
        
          
             

          

          
            7

            
              

            

          

          
             

          

        

      

       

      
        
          

          
            
              

            

          

        

      

       

      
        	
                2.5.4

              	
                Ergonomics/Appearance

              

      

       

      Ergonomics
and appearance will be discussed, evaluated, and finalized during the Industrial
Design (ID) activities of the project and will be provided to VPI by
VoluSol/Rocketship.

       

      Desired
labeling (or embedding of text of the back of the watch) and color schemes will
also be discussed during the ID phase and specified to VPI.

       

      
        	
                2.5.5

              	
                Water
      Resistance

              

      

       

      The watch
will be designed to the IPX7 standard (submersible 1 meter for 30
minutes).

       

      
        	
                2.5.6

              	
                Components
      and Tooling

              

      

       

      The watch
plastic housing will require tooling. The wrist band may or may not require
tooling, based on the design and materials of the wristband.  The cost
for tooling for these items is not included in this quote.  VPI will
obtain quotes for VoluSol for the housing and wristband tooling during the
mechanical design phase of the project.

       

      
        	
                2.6

              	
                Firmware

              

      

       

      Firmware
to provide functionality for the WiVo watch will be
generated.  Firmware for this project can be divided into two overall
categories, basic functions and extended functions.  VPI has budgeted
time in this proposal for the basic functions.

       

      
        	
                2.6.1

              	
                Basic
      Functions

              

      

       

      
        	
                 
      

              	
                ·

              	
                Time

              

      

      
        	
                 
      

              	
                ·

              	
                Bluetooth
      communication

              

      

      
        	
                 
      

              	
                ·

              	
                Speaker
      and microphone functionality

              

      

      
        	
                 
      

              	
                ·

              	
                Battery
      status and system status/messages

              

      

      
        	
                 
      

              	
                ·

              	
                Display
      functionality

              

      

      
        	
                 
      

              	
                ·

              	
                Signal
      strength between watch and cell
phone

              

      

      
        	
                 
      

              	
                ·

              	
                Integration
      of off-the-shelf DSP code for noise and echo
  cancellation

              

      

       

      
        	
                2.6.2

              	
                Extended
      Functions

              

      

       

      
        	
                 
      

              	
                ·

              	
                Motion
      data capture, analysis, prediction of a “fallen person” state, and
      reporting of motion data to call center via AT
  commands

              

      

      
        	
                 
      

              	
                ·

              	
                Fine-tuning
      of echo and noise cancellation

              

      

      

       

      
        	
                3

              	
                Options

              

      

       

      The
following options can be developed at additional cost. At VoluSol’s request, VPI
can provide a quote for any of the items listed here or any additional
requirements.

       

      
        	
                3.1

              	
                Additional
Certifications/Testing

              

      

       

      VPI can
support Client with additional testing and certifications such as CE, UL, CSA
etc.

       

      

      
        
          
             

          

          
            8

            
              

            

          

          
             

          

        

      

      

      
        
          

          
            
              

            

          

        

      

       

      
        	
                3.2

              	
                Extended Functions
Firmware

              

      

       

      VPI can
develop the firmware required for the extended functions of the WiVo watch as
described in section 2.6.2 Extended
Functions.

       

       

      

       

      

      
        
          
             

          

          
            9

            
              

            

          

          
             

          

        

      

      

      
        
          

          
            
              

            

          

        

      

       

      
        	
                4

              	
                Project Outline

              

      

       

      The
project will be divided into the following phases, each having clearly
identified objectives, tasks, and deliverables.

       

      
        	
                ·

              	
                Phase I
–

              	
                System
      Design

              

      

      
        	
                ·

              	
                Phase II
    –

              	
                Prototype
      Design

              

      

      
        	
                ·

              	
                Phase
    III–

              	
                Final
      Design/Pre-Production

              

      

       

      VPI and
the customer may modify these phases as the project progresses and as determined
in subsequent negotiations.

       

      System
Design

       

      VPI will
create a System Specification document that outlines the overall product
requirements, high-level system design, analysis of potential design solutions,
and recommendations. VPI will also develop initial estimates of the per-unit
cost and estimated power usage and battery life.

       

      Prototype
Design

       

      VPI will
design each subsystem and assemble working prototypes that follow the design
guidelines, taking into consideration manufacturability and cost optimization.
Prototypes will be built for testing, analysis, and evaluation
purposes.

       

      Final
Design/Pre-Production

       

      Designs
will be finalized and manufacturing design and documentation will be completed.
The design will then be transferred to production. VPI will manufacture and test
initial pre-production units.

       

      
        	
                4.1

              	
                Phase I – System
Design

              

      

       

      VPI will
create detailed System Specifications for the hardware (mechanical and
electrical systems) based on the requirements provided by VoluSol and subsequent
discussions. The System Specification will outline the overall product
requirements and high-level system designs.

       

      The
system design phase will also include research and selection of many of the
initial components. Wherever possible, components will be selected based on low
cost, short lead times, and multiple sources.

       

      VoluSol
will review the System Specification and any changes identified will be
incorporated.

       

      Tasks

       

      For
a detailed task list and project flow, please refer to the attached project
schedule.

      
        	
                 
      

              	
                ·

              	
                Develop
      the System Hardware Specification

              

      

      
        	
                 
      

              	
                ·

              	
                Research
      and Selection of Major Components

              

      

      
        	
                 
      

              	
                ·

              	
                Design
      Considerations for
Manufacturability

              

      

      
        	
                 
      

              	
                ·

              	
                Create
      Power Budget Estimates

              

      

      
        	
                 
      

              	
                ·

              	
                Design
      Review with VoluSol

              

      

      
        	
                 
      

              	
                ·

              	
                Provide
      Support during Industrial Design

              

      

       

      Deliverables

      
        	
                 
      

              	
                ·

              	
                Document:
      System Hardware Specification

              

      

      
        	
                 
      

              	
                ·

              	
                Updated
      Schedule and Cost Estimates for Phase
II

              

      

      

      
        
          
             

          

          
            10

            
              

            

          

          
             

          

        

      

       

      
        
          

          
            
              

            

          

        

      

       

      
        	
                4.2

              	
                Phase II –Prototype
Design

              

      

       

      During
this phase, VPI will implement the WiVo watch system’s electrical, mechanical,
and manufacturing design.

       

      The
initial design of the WiVo watch will be created based on the updated System
Specification from Phase I, client reviews, and final industrial design. VPI
will complete the design of the interior and, as necessary, exterior features of
the housing and wrist strap. Prototypes of the housing and strap will be built
and presented to the customer for approval. Prototypes of the electronics will
also be built and tested. Other system components will be procured as identified
in Phase I.

       

      Product
designs will focus on reliability, low cost, and design for manufacturability
and testability.

       

      A full
system prototype will be assembled for product evaluation, approval by the
client, product testing, and EMI pre-certification testing. If desired,
additional prototypes can be assembled using prototype cases for demonstration
by VoluSol to investors and potential customers. Product testing will be done on
the system prototypes.

       

      A design
review will be conducted with the customer to review the design, operation, and
testing results, developed during this phase.

       

      Tasks

       

      For
a detailed task list and project flow, please refer to the attached project
schedule.

      
        	
                 
      

              	
                ·

              	
                Electrical
      Design and Development

              

      

      
        	
                 
      

              	
                ·

              	
                Software/Operating
      System Implementation and Alpha
Testing

              

      

      
        	
                 
      

              	
                ·

              	
                Mechanical
      Design and Development

              

      

      
        	
                 
      

              	
                ·

              	
                Build
      Prototypes

              

      

      
        	
                 
      

              	
                ·

              	
                Product
      Testing

              

      

      
        	
                 
      

              	
                ·

              	
                Design
      Review with Client

              

      

      

      Assumptions

      The
following assumptions are made in this phase of the project and in the estimated
cost and schedule:

      
        	
                 
      

              	
                ·

              	
                Additional
      Prototype Units can be provided if requested by the client. The cost for
      these units is not included in this
proposal.

              

      

      
        	
                 
      

              	
                ·

              	
                Estimates
      for mechanical design and prototypes of the case are based on preliminary
      specifications and requirements from the Client and may change based on
      final industrial design.

              

      

       

      Deliverables

      
        	
                 
      

              	
                ·

              	
                10
      Functional Prototype Systems

              

      

      
        	
                 
      

              	
                ·

              	
                Document:
      Updated System Hardware
Specification

              

      

      
        	
                 
      

              	
                ·

              	
                Updated
      Schedule and Cost Estimates for Phase
III

              

      

      

      
        
          
             

          

          
            11

            
              

            

          

          
             

          

        

      

      

      
        
          

          
            
              

            

             

          

        

      

      
        	
                4.3

              	
                Phase III – Final
  Design/Pre-Production

              

      

       

      Based on
results from testing of the prototype units, design review, and client requests,
VPI will finalize the design of electrical and mechanical portions for the WiVo
watch system. Where appropriate, updated prototypes will be built for
testing.

       

      VPI will
develop a manufacturing plan to outline the product manufacturing process. Any
necessary tooling, fixtures, and test equipment will be specified. The
manufacturing process includes receiving components, incoming QA, assembly
process, acceptance criteria, and product testing.

       

      A Product
Design Package (PDP) will be created that contains (where applicable) both
electronic and paper copies of the System Specification, final designs of the
overall system, final designs and/or specifications of each component, and
testing/verification reports. This will include all manufacturing design,
process, test strategy, assembly drawings, part/component drawings, and bill of
materials.

       

      A design
review will be conducted with the client to review the design of the entire
system.  EMI testing and FCC certification will also be
conducted.

       

      The
manufacturing process designed by VPI and documented in the Product
Manufacturing Package will be transferred to the manufacturing facility. VPI
will provide support to setup the manufacturing process and perform quality
assurance inspections on the pre-production run.

       

      Tasks

       

      For
a detailed task list and project flow, please refer to the attached project
schedule.

      
        	
                 
      

              	
                ·

              	
                Finalize
      Electrical Design and Development

              

      

      
        	
                 
      

              	
                ·

              	
                Software/Operating
      System Implementation and Alpha
Testing

              

      

      
        	
                 
      

              	
                ·

              	
                Finalize
      Mechanical Design and Development

              

      

      
        	
                 
      

              	
                ·

              	
                Build
      Prototypes

              

      

      
        	
                 
      

              	
                ·

              	
                Production
      Process Design

              

      

      
        	
                 
      

              	
                ·

              	
                Assemble
      Product Design Package

              

      

      
        	
                 
      

              	
                ·

              	
                EMI
      Testing and FCC Certification

              

      

      
        	
                 
      

              	
                ·

              	
                Design
      Review with Client

              

      

      
        	
                 
      

              	
                ·

              	
                Monitor
      Pre-Production Run

              

      

       

      Deliverables

      
        	
                 
      

              	
                ·

              	
                2
      Working Final Systems

              

      

      
        	
                 
      

              	
                ·

              	
                Document:
      Product Design Package

              

      

      
        	
                 
      

              	
                ·

              	
                FCC
      Testing Results

              

      

       

      Assumptions

      The
following assumptions are made in this phase of the project and in the estimated
cost and schedule:

      
        	
                 
      

              	
                ·

              	
                Estimated
      expenses include estimates for manufacturer setup expenses (including
      travel.) These expenses do not include any parts, components, or materials
      for the pre-production run that will be incurred in this
      Phase.

              

      

      

      
        
          
             

          

          
            12

            
              

            

          

          
             

          

        

      

      

      
        
          

          
            
              

            

          

        

      

       

      
        	
                5

              	
                Estimated Cost

              

      

       

      
        	
                Description

              	
                Labor

              	
                Expenses

              
	 
      	 
      	 
      
	
                Phase
      I – System Design

              	
                00

              	
                00

              
	
                ·  System
      Hardware Specification

              	
                $17,550

              	
                00

              
	
                · 
      Industrial Design Support

                o 
      Design Reviews

              	
                $2,810

              	
                0

              
	
                Phase
      II – Prototype Design

              	
                00

              	
                000

              
	
                · 
      Electrical Design/Prototype

                o  PCB
      Layout

                o 
      Prototype Manufacturing (10)

                o 
      Prototype Testing

              	
                $70,425

              	
                $4,000

              
	
                · 
      Firmware Design

                o  Basic
      Functions

              	
                $40,500

              	
                0

              
	
                · 
      Mechanical Design

                o 
      Design and Modeling

                o 
      Prototype Manufacturing (10)

              	
                $31,050

              	
                $1,500

              
	
                ·  System
      Testing

              	
                $25,650

              	
                $1,000

              
	
                Phase
      III – Final Design

              	
                0

              	
                0

              
	
                · 
      Electronics

                o 
      Design Updates

                o  PCB
      Layout

                o 
      Manufacture (2) Prototypes

                o 
      Hardware Testing

              	
                $26,440

              	
                $4,000

              
	
                · 
      Firmware

                o  Alpha
      Testing/Release

                o  Beta
      Testing/Release

              	
                $33,750

              	
                0

              
	
                · 
      Regulatory Certification

                o 
      FCC

              	
                $13,500

              	
                $15,000

              
	
                · 
      Mechanical

                o 
      Design Updates

                o 
      Design Review

                o 
      Tooling

                o 
      QA

                o 
      Assembly Drawings

              	
                $24,030

              	
                0

              
	
                · 
      Production Design

                o 
      Manufacturing Process

                o 
      Review/Release Drawings

                o 
      Product Design Package

                o 
      Product Manufacturing Package

              	
                $8,100

              	
                00

              
	 
      	 
      	 
      
	
                Total
      Estimated Cost

              	
                $293,805

              	
                $25,500

              
	 
      	 
      	 
      

      

       

      
        
          
             

          

          
            13

            
              

            

          

          
             

          

        

      

       

      
        
          

          
            
              

            

          

        

      

      All tasks
are time and materials estimates. Actual costs will vary. VPI reserves the right
to re-quote any tasks as specifications and tasks change.

       

      Expenses
include materials for prototype units. They do not include manufacturing
expenses such as materials, assembly costs, and material markup expenses for
pre-production and production runs. These expenses would be based on a per unit
cost, and would be quoted separately.

       

       

      
        	
                6

              	
                Schedule

              

      

       

      See the
attached project schedule V009506.

       

      

      
        
          
             

          

          
            14

            
              

            

          

          
             

          

        

      

      

      
        
          

          
            
              

            

          

        

      

       

      
        	
                7

              	
                Project Terms

              

      

      

      The
following are needed to begin work on the project:

      
        	
                 
      

              	
                ·

              	
                Proposal
      signed or a purchase order from customer referring to this
      document

              

      

      
        	
                 
      

              	
                ·

              	
                Completed
      VPI Credit Application

              

      

      
        	
                 
      

              	
                ·

              	
                Signed
      Professional Services Agreement

              

      

      
        	
                 
      

              	
                ·

              	
                $32,000
      Down Payment to be applied to final
invoice

              

      

       

      Payment
Terms

      
        	
                 
      

              	
                ·

              	
                Monthly
      billing for time and materials

              

      

      
        	
                 
      

              	
                ·

              	
                Net
      15

              

      

      

      Customer
authorizes VPI to begin the work outlined in this proposal.

      

      

      Client
Company:  ______________________________________________

       

      Authorizing
Agent:  _____________________________________________

      

      Title: 
_______________________________________________________

      

      Signature: 
___________________________________________________

      

      Date:
(MM/DD/YY)  ___________________________________________

      

      -------------------

       

      This
proposal is valid for 30 days. All technical information, specifications, costs,
schedules, and all related materials quoted, expressed, or implied in this
document are results of our judgment at this point in time and are only
estimates based upon the information available to us. We reserve the right to
modify such information as we find necessary based on client requests, available
technology, and other eventualities. We will communicate any such changes to the
client and obtain any required approval.

       

       

      The
information contained in this document is the sole property of Visionary
Products Inc. Reproduction in part or whole without the written permission of
Visionary Products Inc. is prohibited. All rights reserved.

       

       

      
         

        15vsrs1asecpur.htm

    
      

      

    

     

    VOLU-SOL
REAGENTS, INC.

    

    SECURITIES PURCHASE
AGREEMENT

    

    THIS SECURITIES PURCHASE AGREEMENT (the
“Agreement”), dated as of November 15, 2007, is entered into by and between
Volu-Sol Reagents, Inc., a Utah corporation (the “Company”) and ADP Management
(the “Purchaser”).  In consideration of the mutual promises and
covenants contained in this Agreement, the parties hereto agree as
follows:

    

    
      	
               
      

            	
              1.

            	
              Authorization; Sale of
      Shares; Issuance of
Warrants.

            

    

    

    1.1           Authorization.  The
Company has, or before the Closing (as defined in Section 2) will have, duly
authorized the sale and issuance in this offering, pursuant to the terms of this
Agreement, a minimum of 5,000,000 shares of the Company’s Common Stock (the
”Shares”).

    

    1.2           Sale of
Shares.  Subject to the terms and conditions of this Agreement,
at the Closing (as defined in Section 2.2), the Company will sell and issue to
the Purchaser, and the Purchaser will purchase, 2,500,000 Shares for the
purchase price of $.40 per share (the “Purchase Price”).

    

    1.3           Use of
Proceeds.  The Company will use the proceeds from the sales of
the Shares for product development and other general corporate
purposes.

    

    2.           Closing.

    

    2.1           The
Closing.  Subject to the terms and conditions of this Agreement, the
closing (the “Closing”) of the sale and purchase of the Securities under this
Agreement shall take place on the date of this Agreement (the “Closing Date”.)
At the Closing:

    

    (a)           The
Company shall deliver to the Purchaser a certificate, as of the most recent
practicable dates, as to the corporate good standing of the Company issued by
the Secretary of State of the State of Utah;

    

    (b)           The
Company shall deliver to the Purchaser a copy of the Articles of Incorporation
of the Company;

    

    (c)           The
Company shall deliver to the Purchaser a resolution of the Board of Directors of
the Company, authorizing and approving all matters in connections with this
Agreement and the transactions contemplated hereby;

    

    (d)           The
Company shall deliver to the Purchaser a certificate for the Shares registered
in the name of such Purchaser;

    

    (e)           The
Purchaser shall pay to the Company, by wire transfer of immediately available
funds, the Purchase Price for the Shares being purchased.  The Closing
shall not be deemed to occur, and all such payments by any Purchaser shall be
deemed to be held in escrow, until the Purchaser shall have tendered to the
Company the payments of the Purchase Price.

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

    

    3.           Representations of the
Company.  The Company hereby represents and warrants to the
Purchaser that the statements contained in this Section 3 are complete and
accurate as of the date of this agreement.

    

    3.1           Organization and
Standing.  The Company is a corporation duly organized, validly
existing and in good standing under the laws of the Sate of Utah and has full
corporate power and authority to conduct its business as presently conducted and
as proposed to be conducted by it and to enter into and perform this Agreement
and all other agreements required to be executed by the Company at or prior to
the Closing pursuant to Section 2 (the “Ancillary Agreements”) and to carry out
the transactions contemplated by this Agreement and the Ancillary
Agreements.

    

    3.2           Subsidiaries,
Etc.  The Company has no subsidiaries and does not own or
control, directly or indirectly, any shares of capital stock of any other
corporation or any interest in any partnership, limited liability company, joint
venture or other non-corporate business enterprise.

    

    3.3           Capitalization.

    

       
(a)        The authorized capital stock
of the Company (immediately prior to the Closing) consists of (i) 50,000,000
shares of Common Stock, $.00001 par value per share, of which, as of January 31,
2007, 5,000,000 shares are issued and outstanding and no shares are held in the
treasury of the Company, and (ii) 10,000,000 shares of Preferred Stock, $.0001
par value per share, of which 0 shares are issued.  All issued and
outstanding capital stock of the Company has been duly authorized and validly
issued, is fully paid and nonassessable and has been issued in compliance with
all federal and state securities laws.

    

       
(b)        Except as set forth in this
Section 3.3, (i) no subscription, warrant, option, convertible security or other
right (contingent or otherwise) to purchase or acquire any shares of capital
stock of the Company is authorized or outstanding, and there are no statutory or
contractual stockholders’ preemptive rights or rights of refusal with respect to
the issuance of the Shares, (ii) the Company has no obligation (contingent or
otherwise) to issue any subscription, warrant, option, convertible security or
other such right, or to issue or distribute to holders of any shares of its
capital stock any evidences of indebtedness or assets of the Company. (iii) the
Company has no obligation (contingent or otherwise) to purchase, redeem, or
otherwise acquire any shares of its capital stock or any interest therein or to
pay any dividend or to make any other distribution in respect thereof, and (iv)
there are no outstanding or authorized stock appreciation, phantom stock or
similar rights with respect to the Company.

    

    3.4           Issuance of
Shares.  The issuance, sale and delivery of the Shares in
accordance with this Agreement, have been, or will be on or prior to the
Closing, duly authorized by all necessary corporate action on the part of the
Company, and all such shares have been reserved for issuance by the Board of
Directors.  The Shares when so issued, sold and delivered against
payment therefore in accordance with the provisions of this Agreement, when
issued upon such conversion, will be duly and validly issued, fully paid, and
nonassessable, and free of restrictions on transfer other than restrictions
imposed or created under this Agreement of the Ancillary Agreements,
restrictions required as necessary to qualify this offering as exempt from the
registration and requirements of the Securities Act of 1933, as amended
(together with the rules and regulations thereunder, the “Securities Act”) of
any other applicable law, or by the Purchaser.

    

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    3.5           Authority for Agreement; No
Conflict.  The execution, delivery and performance by the
Company of this Agreement and the Ancillary Agreements, and the consummation by
the Company of the transactions contemplated hereby and thereby, have been duly
authorized by all necessary corporate action.  This Agreement has
been, and the Ancillary Agreements when executed at the Closing will be, duly
executed and delivered by the Company and constitute valid and binding
obligations of the Company enforceable in accordance with their respective
terms.  The execution and delivery of this Agreement and the Ancillary
Agreements, the consummation of the transactions contemplated hereby and thereby
and the compliance with their respective provisions by the Company will not (a)
conflict with or violate any provision of the Articles of Incorporation or
By-laws of the Company, (b) conflict with, result in a breach of, constitute
(with or without due notice or lapse of time or both) a default under, result in
the acceleration of obligations under, create in any party the right to
accelerate, terminate, modify or cancel, or require any notice, consent or
waiver under, any contract, lease, sublease, license, sublicense, franchise,
permit, indenture, agreement or mortgage for borrowed money, instrument of
indebtedness, Security Interest (as defined below) or other arrangement to which
the Company is a party or by which the Company is bound or to which its assets
are subject, (c) result in the imposition of any Security Interest upon any
assets of the Company or (d) violate any order, writ, injunction, decree,
statute, rule or regulation applicable to the Company or any of its properties
or assets.  For purposes of this Agreement, “Security Interest” means
any mortgage, pledge, security interest, encumbrance, charge or other lien
(whether arising by contract or by operation of law).

    

    3.6           Governmental
Consents.  No consent, approval, order or authorization of, or
registration, qualification, designation, declaration or filing with, any local,
state, federal or foreign court, arbitrational tribunal, administrative agency
or commission or the other governmental or regulatory authority or agency (each
of the foregoing is hereafter referred to as a “Governmental Entity”) is
required on the part of the Company in connection with the offer, issuance, sale
and delivery of the Shares, the issuance and delivery of the shares of Common
Stock issuable upon conversion of the Shares or the other transactions to be
consummated at the Closing, as contemplated by this Agreement and the Ancillary
Agreements, except such filings as shall have been made prior to and shall be
effective on and as of the Closing and such filings required to be made after
the Closing under applicable federal and state securities laws, all of which
filings are specified in the Disclosure Schedule.

    

    3.7           Litigation.  There
is no action, suit or proceeding, or governmental inquiry or investigation,
pending, or, to the best of the Company’s knowledge, any basis therefore or
threat thereof, against the Company, which (a) questions the validity of this
Agreement, the Ancillary Agreements of the right of the Company to enter into
any such agreements or (b) might result, either individually or in the
aggregate, in a Company Material Adverse Effect.  The Company is not a
party to or subject to the provisions of any injunction, judgment, decree of
order of any Government Entity.

    

    3.8           Financial
Statements.  The Company has made available to the purchaser a
complete and accurate copy of (a) the unaudited balance sheet of the Company at
September 30, 2004, 2005 and 2006 and the related unaudited statements of
operations.

    

    3.9           Absence of Undisclosed
Liabilities.  The Company does not have any liability (whether
known or unknown and whether absolute or contingent), except for (a) liabilities
shown on the Balance Sheet, (b) liabilities not in excess of $5,000 in the
aggregate, which have arisen since the Balance Sheet Date in the ordinary course
of business and (c) contractual liabilities incurred in the ordinary course of
business which are not required by GAAP to be reflected on a balance sheet and
which could not, either individually or in the aggregate, have or reasonably be
expected to result in a Company Material Adverse Effect.

    

    3.10         Off-Balance Sheet
Arrangements.  There is no transaction, arrangement or other
relationship between the Company and an unconsolidated or other off-balance
sheet entity that is required to be disclosed by the Company under the
Securities Exchange Act of 1934, as amended (together with the rules and
regulations of the Commission promulgated thereunder, the “Exchange Act”) and is
not so disclosed or that otherwise could reasonably be expected to have a
Company Material Adverse Effect.

    

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

    

    3.11         Absence of
Changes.  Since the unaudited Balance Sheet Date, there has
been no event of development that, individually or in the aggregate, has had or
could reasonably be expected to have a Company Material Adverse
Effect.

    

    3.12         Foreign Corrupt
Practices.  Neither the Company, nor any director, officer,
agent, employee or other person acting on behalf of the Company has, in the
course of its actions for, or on behalf of, the Company (i) used any corporate
funds for any unlawful contribution, gift, entertainment or any foreign or
domestic government official or employee from corporate funds; (ii) made any
direct or indirect unlawful payment to any foreign or domestic government
official or employee from corporate funds; (iii) violated or is in violation of
any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or
(iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or
other unlawful payment to any foreign or domestic government official or
employees.

    

    
      	
               
      

            	
              3.13

            	
              Taxes.

            

    

    

     (a)        For
purposes of this Agreement: (i) “Tax” of “Taxes” mean all taxes, charges, fees,
levies or other similar assessments or liabilities, including without limitation
income, gross receipts, ad valorem, premium, value-added, excise, real property,
personal property, sales, use, transfer, withholding, employment, unemployment
insurance, social security, business license, business organization,
environmental, workers compensation, payroll, profits, license, lease, service,
service use, severance, stamp, occupation, windfall profits, customs, duties,
franchise and other taxes imposed by the United States of America of any state,
local or foreign government, or any other Governmental Entity, and any interest,
fines, penalties, assessments or additions to tax resulting from, attributable
to or incurred in connection with any tax or any contest or dispute thereof; and
(ii) “Tax Returns” means all reports, returns, declarations, statements or other
information required to be supplied to a taxing authority in connection with
Taxes and any amendment thereof.

    

     (b)        The
amount shown on the Balance Sheet as provision for Taxes is sufficient in all
material respects for the payment of all unpaid Taxes for all periods ending on
or before the date thereof.  The Company has timely filed or obtained
and presently effective extensions with respect to all Tax Returns that are or
were required to be filed by it, such Tax Returns are complete and accurate in
all material respects and all Taxes shown thereon to be due have been timely
paid.  The Company has no knowledge of any tax deficiency which has
been or might be asserted or threatened against it and that could reasonably be
expected to have a Company Material Adverse Effect. All Taxes that the Company
is or was required by law to have withheld or collected have been duly withheld
or collected and, to the extent required, have been timely paid to the proper
Governmental Entity, and no controversy with respect to Taxes is pending or, to
the best of the Company’s knowledge, threatened.  Neither the Company
nor, to the knowledge of the Company any of its stockholders, has ever filed an
election pursuant to Section 1362 of the Internal Revenue Code of 1986, as
amended (the “Code”), that the Company be taxed as an S
corporation.

    

     (c)        The
Company is not now and has never been a “United States real property holding
corporation” as defined in Section 897(c)(2) of the Code and the Treasury
Regulations thereunder.

    

    3.14         Property and
Assets.  The Company has good and marketable title to, or a
valid leasehold interest in, all of its material properties and assets,
including all properties and assets reflected in the Balance Sheet.

    

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    3.15         Insurance.  The
Company maintains valid policies of workers’ compensation insurance and of
insurance with respect to its properties and business of the kinds and in the
amounts not less than are customarily obtained by corporations of established
reputation engaged in the same of similar business and similarly situated,
including, without limitation, insurance against loss, damage, fire, theft,
public liability and other risks.

    

    3.16         Compliance.  The
Company has complied with all laws, regulations and orders applicable to its
present and proposed business and has all permits and licenses required thereby,
except to the extent such a violation could not reasonably be expected to result
in or have a Company Material Adverse Effect.  There is no term or
provision of any mortgage, indenture, contract, agreement or instrument to which
the Company is a party of by which it is bound, or, to the best of the Company’s
Entity applicable to or binding upon the Company, which has or could reasonably
be expected to result in or have a Company Material Adverse
Effect.  To the best of the Company’s knowledge, none of the employees
of the Company is in violation of any term of any contract or covenant (either
with the Company or with another entity) relating to employment, patents,
assignment of inventions, proprietary information disclosure, non-competition or
non-solicitation.

    

    
      	
               
      

            	
              3.17

            	
              Employees.

            

    

    

     (a)        All
current and former employees of the Company who have or have had access to
confidential or proprietary information of the Company have executed and
delivered nondisclosure and assignment of inventions agreements and all of such
agreements are in full force and effect.

    

     (b)        The
Company is not aware that any employee of the Company has plans to terminate his
or her employment relationship with the Company.  All employees of the
Company are engaged by the Company on a full time basis.  The Company
has complied in all material respects with all applicable laws relating to
wages, hours, equal opportunity, collective bargaining, workers’ compensation
insurance and the payment of social security and other Taxes.  None of
the employees of the Company is represented by any labor union, and there is no
labor strike or other labor trouble pending with respect to the Company
(including, without limitation, any organizational drive) or, to the best of the
Company’s knowledge, threatened.

    

    3.18         ERISA.  The
Company does not have or otherwise contribute to or participate in any employee
benefit plan subject to the Employee Retirement Income Security Act of 1974, as
amended, other than a medical benefit plan with respect to which the Company has
made all required contributions and has complied with all applicable
laws.

    

    3.19         Books and
Records.  The minute books of the Company contain complete and
accurate records of all meetings and other corporate actions of its stockholders
and its Board of Directors and committees thereof.  The stock ledger
of the Company is complete and accurate and reflects all issuances, transfers,
repurchases and cancellations of shares of capital stock of the
Company.

    

    3.20         Non-Public
Information.  The Company has not disclosed to the purchaser
information that would constitute material non-public information as of the
Closing.

    

    3.21         Disclosures.  Neither
this Agreement nor any Exhibit hereto, nor any Ancillary Agreement nor any
report, certificate or instrument furnished by the Company to any of the
Purchaser or its counsel in connection with the transactions contemplated by
this Agreement, when read together, contains or will contain any untrue
statement of a material fact or omits or will omit to sate a material fact
necessary in order to make the statements contained herein or therein, in light
of the circumstances under which they were made, not misleading.  Each
projection furnished was prepared in good faith based on reasonable assumptions
and represents the Company’s best estimate of future results based on
information available as of the date of such projections.

    

    

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

    

    3.22         Use of Purchaser
Name.  Except as may be required by applicable law or
regulation, the Company shall not use the Purchaser’s name in any advertisement,
announcement, press release or other similar public communication unless is has
received the prior written consent of the Purchaser for the specific use
contemplated or as otherwise required by applicable law or
regulation.

    

    4.         Representations of the
Purchaser.  The Purchaser represents and warrants to the
Company as follows:

    

    4.1           Investment.  The
Purchaser is acquiring the Shares for its own account for investment and not
with a view to, or for sale in connection with, any distribution thereof, nor
with any present intention of distributing or selling the same; and, except as
contemplated by this Agreement, and the Exhibits hereto, the Purchaser has no
present or contemplated agreement, undertaking, arrangement, obligation,
indebtedness or commitment providing for the disposition thereof.

    

    4.2           Accredited
Investor.  The Purchaser is an “accredited investor” as defined
in Rule 501(a) under the Securities Act.

    

    4.3           Authority.  The
Purchaser has full power and authority to enter into and to perform this
Agreement and the Ancillary Agreement in accordance with their
terms.  If the Purchaser is a corporation, limited liability Company,
partnership or trust represents that is have no been organized, reorganized or
recapitalized specifically for the purpose of investing in the
Company.

    

    4.4           Disclosure and
Experience.  Such Purchaser has carefully read and reviewed the
information, representations, and risks concerning the Company contained in this
Agreement any Ancillary Agreement, and any exhibits or schedules thereto or
documents incorporated by reference therein.  The officers of the
Company have made available to such Purchaser any and all written information
which he, she or it has requested and have answered to such Purchaser’s
satisfaction all inquiries made by such Purchaser; and such Purchaser has
sufficient knowledge and experience in finance and business that he, she or it
is capable of evaluating the risks and merits of his, her or its investment in
the Company and such Purchaser is able financially to beat the risks
thereof.

    

    4.5           No Outside
Representations.  The Purchaser acknowledges that it is not
relying upon statements or representations by any person, firm or corporation,
other than the Company, in making its decision to invest in the
Company.

    

    4.6           Risk
Factors.  The Purchaser agrees and acknowledges that it has
been informed about and fully understands that there are risks associated with
an investment in the Company.

    

    4.7           Sole Party in
Interest.  The Purchaser represents and warrants that it is the
sole and true party in interest with respect o the Shares being issued to
it.

    

    4.8           Investment
Purpose.  The Purchaser represents and warrants that it is
acquiring the Shares for its own account, for investment  purposes,
and not for the account of benefit of any other person or entity or for or with
a view to resale or distribution thereof, and it has no present intention to
effect any distribution of the Shares, provided that the disposition of the
Shares owned by such Purchaser shall at all times be and remain within its
control, subject to the provisions of this Agreement and the Ancillary
Agreements.

    

    

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    

    4.9           Knowledge and
Experience.  The Purchaser is experienced in evaluating and
making speculative investments, and has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and
risks of its investment in the Company.  The Purchaser understands
that an investment in the Company is speculative and has concluded that its
proposed investment is appropriate in light of its overall investment objectives
and financial situation.

    

    4.10         Disclosure: Access to
Information.  The Purchaser has received, read and understands
this Agreement; that all documents, records, books, and other information
pertaining to its investment in the Company requested by it have been made
available for inspection and copying and there are no additional materials or
documents that have been requested by it that have not been made available by or
on behalf of the Company.

    

    4.11         Accuracy of Representations
and Information.  All representations made by the Purchaser in
this Agreement, and all other information provided by it to the Company
concerning it, are correct and complete in all material respects as of the date
hereof, and further that if there is any material change in such information
before the Closing Date and the issuance of the Shares, it promptly will provide
such information to the Company.

    

    4.12         Tax
Matters.  The Purchaser represents and warrants that is has
reviewed and understands the U.S. federal and any applicable state income tax
aspects of its purchase of the Shares, and has received such advice in this
regard as it deems necessary from qualified sources such as attorneys, tax
advisors or accountants, and is not relying on any representative or employee of
the Company for such advice.

    

    4.13         Manner of
Sale.  The Purchaser represents and warrants that at no time
was such Purchaser presented with or solicited by or through any leaflet, public
promotional meeting, television advertisement or any other form of general
solicitation or advertising.

    

    4.14         Liquidity.  The
Purchaser presently has sufficient liquid assts to pay the Purchase Price for
all Shares to be purchased by it hereunder, has adequate means of providing for
its current needs and contingencies and has no need for liquidity in its
investment in the Company or for a source of income from the Company and is
capable of bearing the economic risk and the burden of the investment
contemplated by this Agreement including, but not limited to, the possibility of
the complete loss of the value of the Shares and the limited transferability of
the Shares, which may make the liquidation of the Shares impossible in the near
future.

    

    4.15         Absence of
Conflicts.  Neither the execution and delivery of this
Agreement or any other agreement or instrument to be executed in connection
therewith, nor the consummation of the transactions contemplated thereby and
compliance with the requirements thereof, will violate any law, rule,
regulation, order, writ, judgment, injunction, decree or award binding on the
Purchaser, of the provision of any indenture, instrument or agreement to which
it is a party or is subject, or by which it or any of its properties is bound,
or conflict with or constitute a material default thereunder, or result in the
creation or imposition of any lien pursuant to the terms of any such indenture,
instrument or agreement, or constitute a breach of any fiduciary duty owed by or
to it to any third party, or require the approval of any third party pursuant to
any material contract, agreement, instrument, relationship or legal obligation
to which it is subject or to which any of its properties, operations or
management may be subject.  If the Purchaser is, or is purchasing
Shares on behalf of, a mutual fund, venture capital fund, investment
partnership, or other entity formed fro the purpose of group investing on behalf
of fun equity owners (an “Investment Fund”), the Purchaser has made its own
determination of the suitability of an investment in Shares for the Investment
Fund and an investment in Shares satisfies all diversification, liquidity and
other requirements applicable to an investment by such Investment
Fund.

    

    

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

    

    5.         Transfer of
Shares.

    

    5.1           Restricted
Shares.  “Restricted Shares” means (a) the Shares, and (b) any
other shares of capital stock of the Company issued in respect of such shares
(as a result of stock splits, stock dividends, reclassifications,
recapitalizations or similar events); provided, however, that shares
of Common Stock which are Restricted Shares shall cease to be Restricted Shares
(x) upon any sale pursuant to a registration statement under the Securities Act,
Section 4(1) of the Securities Act or Rule 144 under the Securities Act or (y)
at such time as they become eligible for sale under Rule 144(k) under the
Securities Act.

    

    
      	
               
      

            	
              5.2

            	
              Requirements for
      Transfer.

            

    

    

     (a)        Restricted
Shares shall not be sold or transferred unless either (i) they first shall have
been registered under the Securities Act, or (ii) the Company first shall have
been furnished with an opinion of legal counsel, reasonably satisfactory to the
Company, to the effect that such sale or transfer is exempt from the
registration requirements of the Securities Act.

     

     (b)        Notwithstanding
the foregoing, no registration or opinion of counsel shall be required for (i) a
transfer by the Purchaser to an Affiliated Party (as such term is defined below)
or such Purchaser, (ii) a transfer by the Purchaser which is a partnership to a
partner of such partnership or a retired partner of such partnership who retires
after the date hereof, or to the estate of any such partner or retired partner,
or (iii) a transfer by the Purchaser which is a limited liability company to a
member of such limited liability company or a retired member who resigns after
the date hereof or to the estate of any such member or retired member; provided
that the transferee in each case agrees in writing to be subject to the terms of
this Section 5 to the same extent as if it were the original Purchaser
hereunder, or (iv) a transfer made in accordance with Rule 144 under the
Securities Act.  For purposes of this Agreement “Affiliated Party”
shall mean, with respect to the Purchaser, any person or entity which, directly
or indirectly, controls, is controlled by or is under common control with such
Purchaser, including, without limitation, any general partner, officer or
director of such Purchaser

    

    5.3           Legend.  Each
certificate representing Restricted Shares shall bear a legend substantially in
the following form:

    

    “THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURTIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL SUCH SHARES ARE REGISTERED
UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY IS OBTAINED
TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.”

    

    5.4           The
foregoing legend shall be removed from the certificates representing any
Restricted Shares, at the request of the holder thereof, at such time as they
become eligible for resale pursuant to Rule 144(k) under the Securities
Act.

    

    

    

    

    

    
      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              6.

            	
              Indemnification.

            

    

    

    6.1           The
Company hereby agrees to indemnify, defend and hold harmless the Purchaser and
its respective affiliates, directors, officers, trustees, employees and
representatives (any of the foregoing, a “Purchaser Indemnified Party”), from
and against any and all causes of action, suits, losses, liabilities, claims,
obligations, damages, deficiencies, costs and expenses, fines or penalties,
including interest, reasonable attorneys’ fees and all reasonable amounts paid
in investigation, defense or settlement of any of the foregoing (“Losses”)
suffered, sustained, incurred or required to be paid by any such Purchaser
Indemnified Party due to, based upon or arising out of any material inaccuracy
in, or any material breach of, a representation or warranty of the Company
contained in this Agreement.

    

    6.2           The
Purchaser hereby agrees to indemnify, defend and hold harmless the Company and
its affiliates, directors, officers, trustees, managers, employees and
representatives (any of the foregoing, a “Company Indemnified Party”), from and
against any Losses suffered, sustained, incurred or required to be paid by any
such Company Indemnified Party due to, based upon or arising out of any material
inaccuracy in, or any material breach of, a representation or warranty of such
Purchaser contained in this Agreement.

    

    
      	
               
      

            	
              7.

            	
              Miscellaneous.

            

    

    

    7.1           Successors and
Assigns.  This Agreement, and the rights and obligations of the
Purchaser hereunder, may be assigned by such Purchaser to (a) any person or
entity to which Shares are transferred by such Purchaser, or (b) to any
affiliate, partner, member, stockholder or subsidiary of such Purchaser, and, in
each case, such transferee shall be deemed a “Purchaser” for purposes of this
Agreement; provided that each such assignment of rights shall be contingent upon
the transferee providing a written instrument to the Company notifying the
Company of such transfer and assignment and agreeing in writing to be bound by
the terms of this Agreement.  The Company may not assign its rights
under this Agreement.

    

    7.2           Survival of Representations
and Warranties.  All representations and warranties contained
herein shall survive the execution and delivery of this Agreement and the
closings of the transactions contemplated hereby.

    

    7.3           Brokers.  The
Company and the Purchaser each (a) represents and warrants to the other parties
hereto that he, she or it has not retained a finder or broker in connection with
the transactions contemplated by this Agreement, and (b) will indemnify and save
the other parties harmless from and against any and all claims, liabilities or
obligations with respect to brokerage or finders’ fees or commissions, or
consulting fees in connection with the transactions contemplated by this
Agreement asserted by any person on the basis of any statement or representation
alleged to have been made by such indemnifying party.

    

    7.4           Severability.  The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this
Agreement.

    

    7.5           Specific Performance.  In
addition to any and all other remedies that may be available at lay in the event
of any breach of this Agreement, the Purchaser shall be entitled to specific
performance of the agreements and obligations of the Company hereunder and to
such other injunctive or other equitable relief as may be granted by a court of
competent jurisdiction.

    

    

    
      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

    

    7.6           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Utah (without reference to the
conflicts of law provisions thereof), as to all other matters.

    

    7.7           Notices.  All notices,
requests, consents and other communications under this Agreement shall be in
writing and shall be deemed delivered (a) three business days after being sent
by registered or certified mail, return receipt requested, postage prepaid or
(b) one business day after being sent via a reputable nationwide overnight
courier service guaranteeing next business day delivery, in each case to the
intended recipient as set forth below:

    

    If to the
Company, at

    

    Volu-Sol
Reagents, Inc.

    5095 West
2100 South

    West
Valley, UT 84120

    Attn:
Chief Financial Officer

    Telephone
No.: (801) 974-9474

    Facsimile
No.: (801) 974-9553

    

    With a
copy (which shall not constitute notice), to

    

    Durham
Jones & Pinegar, P.C.

    111 East
Broadway, Suite 900

    Salt Lake
City, UT 84111

    Attn:
Wayne D. Swan

    Telephone
No.: (801) 415-3000

    Facsimile
No.: (801) 415-3500

    

    If to
Purchaser, at

    

    _____________________

    _____________________

    _____________________

    

    With a copy to:

    

    _____________________

    _____________________

    _____________________

    

    

    Any party
may give any notice, request, consent or other communication under this
Agreement using any other means (including, without limitation, personal
delivery, messenger service, telecopy, first class mail or electronic mail), but
no such notice, request, consent or other communication shall be deemed to have
been duly given unless and until it is actually received by the party for whom
it is intended.  Any party may change the address to which notices,
requests, consents or other communications hereunder are to be delivered by
giving the other parties notice in the manner set forth in this
Section.

    

    

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

    

    7.8           Complete
Agreement.  This Agreement (including its Exhibits) constitutes
the entire agreement and understanding of the parties hereto with respect to the
subject matter hereof and supersedes all prior agreements and understandings
relating to such subject matter.

    

    7.9           Amendments and
Waivers.  This Agreement may be amended or terminated and the
observance of any term of this Agreement may be waived with respect to all
parties to this Agreement (either generally or in a particular instance and
either retroactively or prospectively), with the written consent of both the
Company and the Purchaser.  No waivers of or exceptions to any term,
condition or provision of this Agreement, in any one or more instances, shall be
deemed to be, or construed as, a further or continuing waiver of any such term,
condition or provision.

    

    7.10         Pronouns.  Whenever
the context may require, any pronouns used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular form of
nouns and pronouns shall include the plural, and vice versa.

    

    7.11         Counterparts; Facsimile
Signatures.  This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, and all of which
shall constitute one and the same document.  This agreement may be
executed by facsimile signatures.

    

    7.12         Section Headings and
References. The section headings are for the convenience of the parties
and in no way alter, modify, amend, limit or restrict the contractual
obligations of the parties.  Any reference in this agreement to a
particular section or subsection shall refer to a section or subsection of this
Agreement, unless specified otherwise.

    

    

    
       
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          11

          
            

          

        

        
           

        

      

    

    

    

    

    

    

    Executed
as of the date first written above.

    

    
      	 
      	
              COMPANY:

            
	 
      	 
      
	 
      	
              VOLU-SOL
      REAGENTS, INC.

            
	 
      	 
      
	 
      	
              __________________________

            
	 
      	 
      
	 
      	
              By:
      _______________________

            
	 
      	 
      
	 
      	 
      
	 
      	
              Purchaser:

            
	 
      	 
      
	 
      	
              __________________________

            

    

     

     

     

     

     

    

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

     

    EXHIBIT
A

    

    Unaudited
Financial Statements

     

     

     

    

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

     

    EXHIBIT
B

    

    Business
Plan

     

     

     

     

    
      14

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