Document:

Exhibit 10.1

             

             

            Registration No.3473 dated 14 December 2009 

            ADDENDA No. 4

            to the Contract dated 15 July 1997 for mining of nickel-cobalt ore at Novo-Shandashinsk and Kara-Obinsk deposits in Aktyubinsk oblast of the Republic of Kazakhstan

            between

            Ministry of Energy and Mineral Resources of the Republic of Kazakhstan

            (Competent authority)

            and

            Limited Liability Partnership

            “Kyzyl Kain Mamyt”

            (Contractor)

             

             

             

             

             

             

             

             

            Astana city 2009

             

            
                

            

            This Addenda No. 4 to Contract dated 15 July 1997 for mining of nickel-cobalt ore at Novo-Shandashinsk and Kara-Obinsk deposits in Aktyubinsk oblast of the Republic of Kazakhstan (hereinafter referred to as Contract) has been concluded on 14 December 2009 between Ministry of Energy and Mineral Resources of the Republic of Kazakhstan (hereinafter referred to as Competent
            authority) and Limited Liability Partnership “Kyzyl Kain Mamyt” (hereinafter referred to as Contractor).

            Preamble

            In view of the fact that:

            -           Contractor applied to the Competent authority with the request to extend validity of the Contract till 2020 and modify Work programme with regard to applied technology of ore processing increasing investment upto 135 000 000 (one hundred thirty five million) US Dollars with temporary suspension
            of ore mining till the end of 2012 for the period of construction of the plant.

            -           Code of the Republic of Kazakhstan No. 99-IV dated 10 December 2008 “On taxes and other obligatory payments to the budget” (Tax Code) was adopted.

            Competent authority has taken a decision to:

            a) extend validity of the Contract till 2020 and modify Work programme with regard to applied technology of ore processing increasing investment upto 135 000000 (one hundred thirty five million) US Dollars with temporary suspension of ore mining till the end of 2012 for the period of construction of the plant and modify the Contract accordingly (Minutes
            No.30 dated 25 December 2008);

            
                	
                             

                        	
                            b)

                        	
                            bring section 16 of the Contract into compliance with effective Tax Code.

                        

            

             

            Competent authority and Contractor have agreed as follows:

             

            
                                1. Paragraph 17 of section 1 of the Contract shall be reworded as follows:
            

            “17. Tax legislation - Code of the Republic of Kazakhstan “On taxes and other obligatory payments to the budget” dated 10 December 2008 No.99-IV (Tax Code) and other regulatory legal acts, adoption of which is provided for by the Tax Code”.

            2.   Paragraph 3.2. of section 3 of the Contract shall be reworded as follows: “3.2. Validity of the Contract shall expire on 12 October 2020”.

            
                	
                             

                        	
                            3.

                        	
                            Paragraph 3.3. of section 3 of the Contract shall be deleted.

                        

            

            
                	
                             

                        	
                            4.

                        	
                            Paragraph 7.1.3. of section 7 of the Contract shall be reworded as follows:

                        

            

            “7.1.3. To use results of own activity at his discretion, including all obtained results of mining and processing of nickel-cobalt ore”.

            5.   The word “ore” shall be added in Paragraph 7.1.4. of section 7 of the Contract after the words “ required for mining nickel-cobalt”.

            6.   In Paragraph 7.1.6. of section 7 of the Contract the words “established by paragraph 3.3. of the Contract” shall be replaced with words “established by legislation of the State”.

            7. Section 7 of the Contract shall be supplemented with paragraph 7.2.19. with the following wording: “7.2.19. Annually, not later than thirty calendar days after agreement of annual Work programme, to submit to the authorised body in the field of state regulation of trade and industrial

             

             

             

            
                

            

            policy annual programme of procurement of goods, works and services for the forthcoming year in accordance with the form, approved by the authorised body in the field of regulation of trade and industrial policy”.

            8. Section 7 of the Contract shall be supplemented with paragraph 7.2.20. with the following wording: “7.2.20. Quarterly, not later than 15th day of the month following reporting period, to submit to the authorised body in the field of state regulation of trade and industrial policy, the report on procured goods, works and services in accordance with the
            form, approved by the authorised body in the field of regulation of trade and industrial policy”.

            
                	
                             

                        	
                            9.

                        	
                            Paragraph 8.4. of section 8 of the Contract shall be reworded as follows:

                        

            

            “8.4. The following volumes of mining and investments are foreseen in the Work programme of the Contract:

             

            
                	
                             

                        	
                            Performance

                            period

                        	
                            Annual ore-mining 

                            volume (thous. tons)

                        	
                             

                            Annual volume of investments

                            (thous. USD)

                        
	
                             

                        	
                            2005-2008

                        	
                            273.2

                        	
                            11 600.0

                        
	
                            1.

                        	
                            2009

                        	
                            Construction of plant

                        	
                            6 000.0

                        
	
                            2.

                        	
                            2010.

                        	
                            Construction of plant

                        	
                            26 500.0

                        
	
                            3.

                        	
                            2011

                        	
                            Construction of plant

                        	
                            42 000.0

                        
	
                            4.

                        	
                            2012

                        	
                            Construction of plant

                        	
                            36 500.0

                        
	
                            5.

                        	
                            2013

                        	
                            800.0

                        	
                            2 400.0

                        
	
                            6.

                        	
                            2014

                        	
                            800.0

                        	
                            2 000.0

                        
	
                            7.

                        	
                            2015

                        	
                            1 000.0

                        	
                            2 000.0

                        
	
                            8.

                        	
                            2016

                        	
                            1 000.0

                        	
                            2 000.0

                        
	
                            9.

                        	
                            2017

                        	
                            1 500.0

                        	
                            1 000.0

                        
	
                            10.

                        	
                            2018

                        	
                            1 500.0

                        	
                            1 000.0

                        
	
                            11

                        	
                            2019

                        	
                            1 600.0

                        	
                            1 000.0

                        
	
                            12.

                        	
                            2020

                        	
                            1 234.9

                        	
                            1 000.0

                        
	
                            Total:

                        	
                             

                        	
                            9 708.1

                        	
                            135 000.0

                        

            

            Construction of plant means a set of phased-planned activities, aimed at development, coordination and approval in authorised bodies of design and estimate documentation, carrying out construction-assembly works with final putting of the completed facility into operation.

            10. Paragraph 11.1. of section 11 of the Contract shall be reworded as follows:

            “11.1.Contractor shall have the exclusive right of Mining in Contract territory till 12 October 2020”.

            11. Section 16 “Taxes and payments” shall be reworded as follows:

            “Section 16. “Taxation”

            16-1 Contractor shall be obliged to pay taxes and other obligatory payments to the budget in accordance with Tax legislation, effective as of date of incidence of liability to pay those.

            16.1.1 Signature bonus

            Contractor shall pay signature bonus at the rate of 5,0 thousand US Dollars. 

            16.2 Contractor shall effect payment on reimbursement of past costs in accordance with the procedure and within periods pursuant to Tax legislation.

            16.3 Customs payments

            Contractor shall be obliged to pay customs payments in accordance with Customs legislation of the Republic of Kazakhstan effective on the date of accepting of customs declaration.

            
                

            

            16.4 Transfer pricing

            In case of variance of prices applied in settlement of transactions from market prices, state bodies, exercising control of applied transfer pricing shall be entitled to adjust objects of taxation in accordance with legislation on state control of application of transfer pricing.

            
                	
                             

                        	
                            16.5

                        	
                            Pension provision, social assessment

                        

            

            Contract shall deduct and transfer obligatory pension taxes of its employees to retirement savings plans in accordance with the legislation on pension provision, and shall also bear responsibility for completeness of computation and timeliness of payment of social assessments to State social insurance fund in accordance with legislation on social insurance,
            effective as of date of incidence of such liabilities.

            
                	
                             

                        	
                            16.6

                        	
                            Penal sanctions

                        

            

            16.6.1. Penal sanctions for breaching of the Tax legislation shall be applied in accordance with the legislation, effective as of date of breaching.

            16.6.2. Penal sanctions on payments not related to taxes shall be applied at rates, specified by the legislation, effective as of date of breaching.

            This Addenda shall be applicable in respect to legal relationships, which had emerged since 1 January 2009”.

            1.2. In paragraph 1 of section 17 of the Contract the words “in accordance with the Edict of the President of the Republic of Kazakhstan, being effective as the Law No.2732 “On accounting” dated 26 December 1995” shall be replaced with words “in accordance with the Law No. 234-111 of the Republic of Kazakhstan “On accounting
            and financial reporting” dated 28 February 2007”.

            13. In paragraph 17.2. of section 17 “Accounting” the words “by paragraph 6.2. of this Contract” shall be replaced with words “by Contract conditions”.

            14. In paragraph 22.2. of section 22 of the Contract the words “specified in paragraph 20.1. of the Contract” shall be replaced with words “specified in paragraph 22.1. of the Contract”.

            15. Section 25 “Transfer of rights and obligations” shall be reworded as follows:

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

            (alienation of participatory interests (shareholdings) of the legal entity, having the rights of the Contractor) during the process of proceeding in bankruptcy of the Contractor, as well as transfer of subsurface use rights as pledge shall be carried out at the permission of the Competent authority.

            25.2.   Credit obtained against pledge of subsurface use right shall be used only for the purposes of subsurface use, specified in the Contract.

            25.3.     In case of non-fulfillment or improper fulfillment of the obligation, secured by the subsurface use right pledge, enforcement of a security interest in pledged property shall be carried out in accordance with the procedure established by the legislation of the Republic of Kazakhstan.

            25.4.   Transfer of subsurface use right shall be carried out on the basis of civil law contracts, as well as other grounds, specified by the legislation, observing rules established by terms and conditions of this section. Contract on transfer of subsurface use right, concluded in 

             

            
                

            

            the absence of the permission, issued in accordance with terms and conditions of this section, shall be considered invalid from the date of its conclusion.

            25.5.  All expenses related to transfer of subsurface use right shall be charged to the Contractor, unless otherwise established by terms and conditions of transfer.

            25.6.  As long as Contractor retains any participation in the Contract, the Contractor and the entity, to which subsurface use right is transferred, shall bear joint liability under Contract.

            25.7. Transfer of subsurface use right is unconditional basis for change of ownership of land plot, mining and (or) geological allotment, as well as registration of rights for land plot and transactions with it in accordance with the legislation.

            Competent authority shall have the right to decline, in accordance with the procedure established by Government of the Republic of Kazakhstan, to issue permission for transfer of subsurface use right in following cases:

            1) if the entity, to which subsurface use right is expected to be transferred is not capable of fulfilling obligations or part of obligations (in case of partial transfer of subsurface use rights), assigned to the Contractor by the Contract;

            2) if Contractor submits patently false information to the Competent authority;

            3) if transfer of subsurface use right shall result in non-observation of requirements on maintenance of national security of the state, including in cases of concentration of rights within the framework of the Contract and (or) concentration of rights to carry out transactions in the field of subsurface use.

            Refusal to issue permission to transfer subsurface use right may be contested in accordance with legislation of the Republic of Kazakhstan”.

            16. Section 28 “Guarantee of stability of the Contract” shall be reworded as follows:

            “Section 28. Guarantee of stability of the Contract

            28.1. Legislative alterations and amendments, worsening the position of the Contractor shall not be applied to the Contract, issued and concluded prior to such alterations and amendments.

            28.2. Guarantees established by this section shall not extend to legislative alterations of the Republic of Kazakhstan in the field of maintenance of defense capacity, national security, in the sphere of environmental security and healthcare.

            28.3. State represented by the Government of the Republic of Kazakhstan or at the decision of the Government of the Republic of Kazakhstan, national controlling holding company or national subsurface use company have priority right as compared to other parties of the Contract or participants of the Contractor, as legal entity, and other entities to purchase
            alienated subsurface use right (its part) and (or) participatory interests (shareholdings) in legal entity having subsurface use right, as well as legal entity, having the right to directly and (or) indirectly determine decisions and (or) exert influence on decisions adopted by the Contractor, if main activity of such legal entity is associated with subsurface use in the Republic of Kazakhstan upon terms not worse than terms proposed by other
            buyers”.

            17.   Section 29 “Terms of termination and suspension of validity of the Contract” shall be reworded as follows:

            Section 29. Terms of alteration and termination of validity of the Contract

             

             

            
                

            

            
                	
                                             29.1 Competent authority shall have the right to cancel the Contract unilaterally in following cases:

                        

            

            
                	
                             

                        	
                            1)

                        	
                            if Contractor declines to remove causes, which resulted in taking a decision to suspend mining, or these causes were not removed within the period sufficient for their removal;

                        

            

            
                	
                             

                        	
                            2)

                        	
                            if Contractor fails to adopt measures, specified in article 70 of the Republic of Kazakhstan Law “On subsurface and subsurface use”;

                        

            

            3) if there is no possibility to remove causes, which resulted in suspension of subsurface use operations;

            
                	
                             

                        	
                            4)

                        	
                            if Contractor allows for substantial breaching of obligations, specified in the Contract or Work programme;

                        

            

            5) if Contractor is declared bankrupt in accordance with the legislation of the Republic of Kazakhstan, except for the case, when subsurface use right is subject of pledge in accordance with the Republic of Kazakhstan Law “On subsurface and subsurface use”;

            
                	
                             

                        	
                            6) 

                        	
                            in case of non-fulfillment of part 3 article 71 of the Republic of Kazakhstan Law “On subsurface and subsurface use”;

                        

            

            7) if within a period up to two months following the date of receipt, in accordance with paragraph 1 of article 45-2 of the Republic of Kazakhstan Law “On subsurface and subsurface use”, of the notice from the Competent authority, on alteration and (or) amendment of terms of the Contract Contractor fails to give his consent in writing to conduct such
            negotiations or declines to conduct such negotiations;

            
                	
                             

                        	
                            8)

                        	
                            if within a period up to four months following the date of receipt of the Contractor to conduct negotiations on alteration and (or) amendment of terms of the Contract parties fail to reach agreement on alteration and (or) amendment of terms of the Contract in accordance with paragraph 1 of article 45-2 of the Republic of Kazakhstan
                            Law “On subsurface and subsurface use”, 

                        

            

            
                	
                             

                        	
                            9)

                        	
                            if within a period up to six months following the date of reaching agreed decision on restoration of economic interests of the Republic of Kazakhstan parties fail to sign alterations and (or) amendments of terms of the Contract in accordance with paragraph 1 of article 45-2 of the Republic of Kazakhstan Law “On subsurface and
                            subsurface use”.

                        

            

            
                	
                             

                        	
                            29.2.

                        	
                            Competent authority shall have the right, prior to adoption of corresponding decision on cancellation of the Contract, to require immediate termination of subsurface use operations by means of sending a notice to the Contractor, and Contractor shall be obliged to fulfill such requirement immediately.

                        

            

            
                	
                             

                        	
                            29.3.

                        	
                            Parties shall not be relieved of their duties to fulfill their ongoing obligations, which remain non-fulfilled as of date of termination of the Contract or alteration of its terms.

                        

            

            
                	
                             

                        	
                            29.4.

                        	
                            Termination of validity of the Contract shall not relieve the Contractor from his duties to restore contract territory to the condition, safe for health and life of the population and environment in accordance with the project of liquidation, approved according to the procedure, established by the legislation of the Republic of
                            Kazakhstan”.

                        

            

            18. Work programme of the Contract (Addenda No. 1B) shall be replaced with Work programme of the Contract (Addenda No. 1?).

            In case of discrepancies or disagreements between variants of the text, variant of the text in Russian shall take precedence.

             

             

            
                

            

             

            This Addenda No. 4 to Contract was made on 14 December in Astana city, Republic of Kazakhstan and signed by authorised representatives of the Parties.

            Signatures of the Parties:

            COMPETENT AUTHORITY

            Ministry of Energy and Mineral Resources of the Republic of Kazakhstan

            (signature)

            
                	
                            Safinov К.B. 

                        

            

            Executive secretary

            CONTRACTOR

            “Kyzyl Kain Mamyt” LLP 

            (company seal)

            (signature)

            D.S.Akhmetov

            Acting Directoractc10k20090930sow.htm

    
      

      

    

    
      Exhibit 10.9

    

    

    

    

    

    

     

    Statement
of Work

     

     

    for

     

     

    “ActiveCare
Inc.

     

     

    Senior
Care  Device”

     

     

    

     

     

    Revision
1

     

     

    December
1, 2009

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    

    TABLE
OF CONTENTS

     

    

      
        	
                Executive
      Summary

              	
                5

              
	
                ActviceCare
      Inc - Internal Customer Review

              	
                6

              
	
                Reviewer

              	
                6

              
	
                Title

              	
                6

              
	
                Signature

              	
                6

              
	
                Date

              	
                6

              
	
                SOW
      Signoff - FINAL

              	
                7

              
	
                SOW
      Signoff - FINAL

              	
                7

              
	
                1

              	
                Reference
      Documents

              	
                8

              
	
                2

              	
                Glossary

              	
                8

              
	
                3

              	
                Overview

              	
                9

              
	
                4

              	
                Roles
      and Responsibilities

              	
                11

              
	
                4.1

              	
                QUECTEL
      RESPONSIBILITIES

              	
                11

              
	
                4.2

              	
                ACTIVECARE,
      INC. RESPONSIBILITIES

              	
                11

              
	
                4.3

              	
                UNASSIGNED
      RESPONSIBILITIES

              	
                11

              
	
                5

              	
                Objective

              	
                13

              
	
                5.1

              	
                DESIGN
      GUIDANCE

              	
                13

              
	
                5.1.1

              	
                DESIGN
      TARGETS

              	
                13

              
	
                5.1.2

              	
                SYSTEM
      ACCESSIBILITY

              	
                13

              
	
                5.1.3

              	
                SYSTEM
      RELIABILITY

              	
                13

              
	
                6

              	
                Development
      Strategy

              	
                14

              
	
                ASSUMPTIONS

              	
                15

              
	
                6.1

              	
                COMMUNICATIONS
      MODEL

              	
                15

              
	
                6.2

              	
                REMOTE
      CONTROL AND MANAGEMENT

              	
                15

              
	
                6.3

              	
                GPS

              	
                16

              
	
                6.4

              	
                WATERPROOF
      DESIGN

              	
                16

              
	
                6.5

              	
                SOFTWARE
      MODEL

              	
                16

              
	
                6.6

              	
                SERVICABILITY

              	
                16

              
	
                6.7

              	
                FORWARD
      ACCOMODATION

              	
                16

              
	
                7

              	
                Functional
      Milestones

              	
                17

              

 

    

    
      
        
          
            Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

            Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

            Page  of
2 of 45

          

           

        

        
           

          
            

          

        

        
           

          
            

            Quectel Wireless Solutions
Ltd.

            Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

            Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

          

        

      

    

    
       

      	
              7.1

            	
              SOW
      AND MOBILIZATION PAYMENT

            	
              17

            
	
              7.2

            	
              CONCEPT
      SIGNOFF MILESTONE

            	
              17

            
	
              7.3

            	
              LAB
      PROTOTYPE MILESTONE ?HAND-BUILT CNC SAMPLES?

            	
              18

            
	
              7.3.1

            	
              COMPANION
      DEVICE

            	
              18

            
	
              7.3.2

            	
              WRIST
      DEVICE

            	
              18

            
	
              7.3.3

            	
              DOCKING
      STATION

            	
              19

            
	
              7.3.4

            	
              DELIVERIES

            	
              19

            
	
              7.4

            	
              Alpha
      MILESTONE (Working Samples)

            	
              19

            
	
              7.4.1

            	
              COMPANION
      DEVICE

            	
              19

            
	
              7.4.2

            	
              WRIST
      DEVICE

            	
              20

            
	
              7.4.3

            	
              DOCKING
      STATION

            	
              20

            
	
              7.4.4

            	
              DELIVERIES

            	
              20

            
	
              7.5

            	
              BETA
      MILESTONE (TEST SAMPLES)

            	
              21

            
	
              7.5.1

            	
              COMPANION
      DEVICE

            	
              21

            
	
              7.5.2

            	
              WRIST
      DEVICE

            	
              21

            
	
              7.5.3

            	
              DOCKING
      STATION

            	
              21

            
	
              7.5.4

            	
              DELIVERIES

            	
              21

            
	
              7.6

            	
              PRE-PRODUCTION
      MILESTONE (GOLDEN SAMPLES)

            	
              22

            
	
              7.6.1

            	
              COMPANION
      DEVICE

            	
              22

            
	
              7.6.2

            	
              WRIST
      DEVICE

            	
              22

            
	
              7.6.3

            	
              DOCKING
      STATION

            	
              22

            
	
              7.6.4

            	
              DELIVERIES

            	
              23

            
	
              7.7

            	
              MASS
      PRODUCTION MILESTONE

            	
              23

            
	
              7.7.1

            	
              COMPANION
      DEVICE, WRIST DEVICE, DOCKING STATION

            	
              23

            
	
              7.7.2

            	
              DELIVERIES

            	
              23

            
	
              7.8

            	
              DOCUMENTATION
      DELIVERABLES

            	
              23

            
	
              7.9

            	
              PC
      SOFTWARE DELIVERABLES

            	
              23

            
	
              8

            	
              Development
      Cost Breakdown

            	
              25

            
	
              8.1

            	
              DEVELOPMENT
      COSTS OVERVIEW

            	
              25

            
	
              TRAVEL
      EXPENDITURES

            	
              26

            
	
              8.2

            	
              CERTIFICATION
      AND APPROVAL FEES

            	
              27

            
	
              8.3

            	
              DISBURSEMENT
      SCHEDULE

            	
              28

            
	
              9

            	
              Risk
      Assessment

            	
              29

            
	
              9.1

            	
              COMPONENT
      LEAD TIME

            	
              29

            
	
              9.2

            	
              BLUETOOTH
      FUNCTION RANGE

            	
              29

            
	
              10

            	
              Options

            	
              29

            
	
              10.1

            	
              SCHEDULE
      ACCELERATION

            	
              29

            
	
              11

            	
              Unit
      Price for Devices and Production Delivery Payment

            	
              30

            

      
 

    

    
      
        
          
            Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

            Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

            Page 3
of 45

          

           

        

        
           

          
            

          

        

        
           

          
            

            Quectel Wireless Solutions
Ltd.

            Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

            Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

          

        

      

    

     

    
      	
              12

            	
              MOQ
      and Lead-time

            	
              30

            
	
              13

            	
              Warranties
      By QUECTEL

            	
              30

            
	
              Appendix
      A - Product Definition for ActiveOne+

            	
              32

            
	
              APPENDIX
      B - GPS PRIMER

            	
              42

            
	 
      	 	 

       

    

    

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 4
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    Executive
Summary

    

    The
Statement of Work for the ActiveCare, Inc. Senior Care Device System presents
the body of work that is required to take this product from conception to
manufacturing. The development centers on the creation of the wrist/ pendant
device, its companion device and a docking device work as charger station for
the companion device. The associated server software application(s) and API are
not included in this SOW; The specifications and functionality of these
components are described in the
Appendix A ‘Product Definition for ActiveOne+’. This specification
evolved from the initial concept proposed by Activecare, Inc., after being
refined and enhanced by Quectel Wireless Solutions, to the current version used
for this SOW.

    

    The costs
for Engineering R&D Services represent a fixed price based on the listed
assumptions and detailed functions listed in the Senior Care System
specification document. The specification document is subject to collaborative
review and modification prior to contract signing. The fixed price total will be
adjusted to reflect any changes made as a result of the review
process.

    

    The cost
of development includes

    
      	
              ·  

            	
              The
      Quectel Wireless Solutions engineering R&D services charges of
      $200,000 for the wrist/ pendant device, its companion device and a docking
      device hardware/software.

            

    

    
      	
              ·  

            	
              The
      costs for tooling for the
      wrist/ pendant device, its companion device and a docking device are
      estimated at $ 160,000.00.

            

    

    
      	
              ·  

            	
              The
      total cost for the entire development is
  $360,000

            

    

    

    The
development schedule spans 30-32 weeks from receipt of initial mobilization
payment to mass production release. The schedule summaries identify milestone
payments and material resource procurement requirements.

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 5
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    ActviceCare
Inc - Internal Customer Review

    

    
      	
              Reviewer

            	
              Title

            	
              Signature

            	
              Date

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

    

     
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 6
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    SOW
Signoff – FINAL

    

    This page
is used to signoff receipt of the SOW and acknowledges that both parties are
aware of the contents of the document. Items within the SOW may be subject to
change as the development proceeds. It is agreed that the detailed requirements
in this SOW are being bid at a fixed price. Changes made to the requirements and
SOW may impact the total price of the development but will not affect the price
of the already quoted items that are not altered.

    
 

    

     
 

     

    
      	 	 	 	 

    

     

    Edwin
Peng

    Technical
Manager

    

    Quectel
Wireless Solution Ltd.

    Suite
801. Building E,

    1618
Yishan Road,

    Shanghai
PRC 201103

     

    
 

    

    
       

      
        	 	 	 	 

      

    

    

    Adam
Liao

    Manager
Director

    

    Quectel
Wireless Solution Ltd.

    Suite
801. Building E,

    1618
Yishan Road,

    Shanghai
PRC 201103

     

     

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 7
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    
      	
              1  

            	
              Reference
      Documents

            

    

    GW100
Technical Specification

    GA100
Technical Specification

    Appendix
A - Product Definition for ActiveOne+

    Appendix   B
– GPS Primer

    

    
      	
              2  

            	
              Glossary

            

    

    There are
a number of acronyms and abbreviations used throughout this
proposal.

    

    
      	
              ASC

            	
              ActiveCare
      Service Center

            
	
              CNC

            	
              Computerized
      Numerical Control

            
	
              RF

            	
              Radio
      Frequency

            
	
              MOU

            	
              Memorandum
      Of Understanding

            
	
              NRE

            	
              Non
      Recurring Engineering

            
	
              GPS

            	
              Global
      Positioning Satellite system

            
	
              SLA

            	
              Stereo
      Lithographic Assembly, a means of creating a 3D physical
    part

            
	
              LED

            	
              Light
      Emitting Diode

            
	
              SPL

            	
              Sound
      Pressure Level

            
	
              SCD

            	
              Senior
      Care Companion Device.

            
	
              SWD

            	
              Senior
      Care Wrist Device

            
	
              DS

            	
              Docking
      Station

            
	
              FCC

            	
              Federal
      Communications Commission

            
	
              PTCRB

            	
              PCS
      Type Certification Review Board

            
	
              SAR

            	
              Specific
      Absorption Rating

            
	
              MPE

            	
              Maximum
      Permissible Exposure

            
	
              UL

            	
              Underwriters
      Laboratory

            
	
              IC

            	
              Industry
      Canada (equivalent to FCC)

            
	
              CSA

            	
              Canadian
      Standards Association (equivalent to UL)

            
	
              AGPS

            	
              Assisted
      GPS, via remote computational facility

            
	
              EOTD

            	
              Estimated
      Observed Time Difference

            
	
              TDOA

            	
              Time
      Difference Of Arrival

            
	
              IMSI

            	
              International
      Mobile Subscriber Identity

            
	
              AC

            	
              Alternating
      Current

            
	
              DC

            	
              Direct
      Current

            
	
              Li-ion

            	
              Lithium
      Ion

            
	
              MS

            	
              Mobile
      Station

            
	
              PPS

            	
              Product
      Prototype Samples

            
	
              SMS

            	
              Short
      Message Service

            
	
              GPRS

            	
              General
      Packet Radio Service

            
	
              TCP/UDP

            	
              Transmission
      Control Protocol / User Datagram Protocol

            
	
              IP

            	
              Internet
      Protocol

            
	
              IR

            	
              Infrared

            
	
              ASCII

            	
              American
      Standard Code for Information Interchange

            
	
              RSSI

            	
              Received
      Signal Strength Indicator

            

    

    

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 8
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

     

    
      	
              3  

            	
              Overview

            

    

    

    The
Senior Care Device System envisioned by Activecare, Inc. requires the design and
development of three entities:

    

    Senior
Care Wrist Device (SWD): a wrist device with voice communication function
through the Senior Companion Device (SCD) by Bluetooth connection, fall
detection is supported in this wrist device, an internal battery is built in
SWD. SWD needs to be waterproof to meet the IP67 standard.

    

    Senior
Companion Device (SCD): a companion device with the SWD providing the voice
communication and GPS location data, all other over-the-air configuration and
data transmission functions through the GSM/GPRS network, fall detection is
supported in this companion device, an internal battery is built in
SCD.

    

    Docking
Station (DS), a Docking charger station to provide charging for the
SCD.

    

    The
Senior Companion Device allows the Active Service Center to detect the location
of a senior person  during an emergency case such as a “fall down”
condition or the press of  the “help” button of the device. It makes
use of a GPS receiver to determine the  user’s position and a cellular
wireless link to communicate these coordinates to the center. If  no
GPS signal is available, it will try to report the Cell ID of the GSM/GPRS
network back to the Active Service Center. The Active Service Center shall
contact the user and enable two way communication whenever the cellular signal
of the device is adequate. Automatic alerts can be sent to the Active Service
Center when the user travels outside a specified area (Geo-Fence) or a fall is
detected. The SWD will not be waterproof.

    

    The
Senior Care Wrist Device (SWD) is to be worn on user’s wrist to provide a voice
communication function through the Senior Companion Device through
a  Bluetooth connection, working as the Bluetooth speaker. An
accelerometer sensor is built into the Senior Care Wrist Device (SWD) to provide
a fall detection function. Once a fall is detected and the Bluetooth connection
with the Senior Companion Device is available, automatic alerts can be sent to
the Active Service Center. There is a limitation of connection range between
Senior Care Wrist Device (SWD) and Senior Companion Device, it is designed to be
100 meters to maintain a voice connection and 100 meters for command
transmission in open area, to meet the Bluetooth Class 1 standard. Once there is
Senior Care Wrist Device (SWD) out range of the connection limitation, an alert
voice will be generated. SWD needs to be waterproof to meet the
IP67standard.

    

    The
Docking Station (DS) is used to recharge both the Wrist Device and the Companion
Device. If it is determined that it is more advantageous to incorporate a third
party charger, then the mechanical and electronic development will be reduced.
The Docking Station (DS) is powered by an off-the-shelf AC adapter to exploit
the cost advantage and avoid the associated UL certification costs. This also
permits the easy replacement of the power source in case the Docking Station
(DS) suffers a lightning strike. AC adapters commonly include ample surge
protection to guard against most power surges commonly experienced on urban
power grids.

    
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 9
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    The
rechargeable batteries that power the Senior Care Wrist Device (SWD) and the
Senior Companion Device are recommended to be Lithium-Poly type to leverage high
capacity and environmentally friendly characteristics. Temperature and current
protection devices will eliminate the potential for injury to the
user.

    

    All
detail specification of Senior Wrist Device and Senior Companion Device and
Docking Station are defined in reference documents: GW100 Technical
Specification and GA100 Technical Specification and Appendix A Product
Definition for ActiveOne+.

     
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 10
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    

    
      	
              4  

            	
              Roles
      and Responsibilities

            

    

    During
the development of the Senior Care Devices, Quectel Wirelesss solutions and
ActiveCare, Inc. will take responsibility for specific
activities.  Collaboration and coordination are used to ensure that
development objectives can be satisfied within the established
timeline.

    

    
      	
              4.1  

            	
              QUECTEL
      RESPONSIBILITIES

            

    

    

    Quectel
assumes the lead on development roles, and will be responsible for:

    

    
      	
              ·  

            	
              System
      Architecture

            

    

    
      	
              ·  

            	
              Design
      and development of Devices and Docking Station hardware and embedded
      firmware

            

    

    
      	
              ·  

            	
              Testing
      of the over-the-air interface of the
device;

            

    

    
      	
              ·  

            	
              Lab
      testing and fault resolution of
devices;

            

    

    
      	
              ·  

            	
              Industrial
      design (Working together with
ActiveCare);

            

    

    
      	
              ·  

            	
              Mechanical
      Design for devices;

            

    

    
      	
              ·  

            	
              Mechanical
      Tooling;

            

    

    
      	
              ·  

            	
              Creating
      an optimized manufacturing fabrication and test
  process;

            

    

    
      	
              ·  

            	
              Support
      certification of devices and Docking
Station;

            

    

    
      	
              ·  

            	
              User
      Documentation;

            

    

    
      	
              ·  

            	
              Materials
      Procurement;

            

    

    
      	
              ·  

            	
              Manufacturing
      (Contract manufacturer) & Logistics (FOB
  Shanghai);

            

    

    
      	
              ·  

            	
              Device
      and Charger servicing and repair (handled under quality warranty
      agreement).

            

    

    

    
      	
              4.2  

            	
              ACTIVECARE, INC.
      RESPONSIBILITIES

            

    

    

    ActiveCare,
Inc. assumes the lead on commercial / operational roles, and will be responsible
for:

    

    
      	
              ·  

            	
              Industrial
      design (Working together with
Quectel);

            

    

    
      	
              ·  

            	
              Timely
      review and feedback of deliverables and acceptance of
      revisions;

            

    

    
      	
              ·  

            	
              Field
      Trials and evaluations.

            

    

    
      	
              ·  

            	
              Procuring
      samples of competitor devices and
equipment

            

    

    
      	
              ·  

            	
              Analysis
      of Competitors and Associated
Technologies

            

    

    
      	
              ·  

            	
              Marketing
      and Sales (Promotion of ActiveCare, Inc. to
  market)

            

    

    
      	
              ·  

            	
              Operations

            

    

    
      	
              ·  

            	
              Fulfillment
      (Either ActiveCare or domestic distributor will perform this
      function)

            

    

    
      	
              ·  

            	
              Customer
      Service (call center, help desk, assistance, RMA,
  etc.)

            

    

    
      	
              ·  

            	
              Maintenance
      of equipment and services, (operating
expenses)

            

    

     

    
      	
              4.3  

            	
              UNASSIGNED
      RESPONSIBILITIES

            

    

    

    Other
activities fall outside the scope of this SOW.  They will be addressed
under separate agreements at the discretion of ActiveCare, Inc.

    
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 11
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    

    
      	
              ·  

            	
              Follow-on
      features and enhancements (future contract(s) addressed as
      needed)

            

    

     

     

    
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 12
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    

    
      	
              5  

            	
              Objective

            

    

    

    Quectel
will try its best to complete the design and integration of Senior Care Wrist
Device, Senior Care Companion Device and charging Docking Station within the
time and financial constraints as specified within this document.

    

    
      	
              5.1  

            	
              DESIGN
      GUIDANCE

            

    

     

    
      	
              5.1.1  

            	
              DESIGN
      TARGETS

            

    

    

    
      	
              Expected
      battery life for device

            	
              The
      expected battery life for the wrist device is targeted at up to 48 hours
      of nominal operating time or up to 4 hours of continuous talk time for
      wrist device;

              The
      expected battery life for the companion device is targeted at up to 96
      hours of nominal operating time with GPS fix and report every 10 minutes
      or up to 4 hours of continuous talk time for companion device

               

            
	
              Expected
      GPS accuracy

            	
              The
      cold start under open sky is expected to be less than 50 seconds. The GPS
      autonomous operation expected accuracy is up to 100 feet under open sky
      after stable operating of GPS chipset.

            
	
              Design
      volume for the devices

            	
              The
      hardware being created is targeted for a volume production of 100,000
      pieces.

            
	
              Cost
      of Goods

              Device
      & Charger

            	
              The
      target hardware cost of goods for each device “system” (consisting of one
      each of a SWD, SCD,  DS) is expected to be no more than $160 US
      for a quantity of 100,000

            

    

     

    
      	
              5.1.2  

            	
              SYSTEM
      ACCESSIBILITY

            

    

    This
statement of work includes a reasonable number of fallback scenarios in an
effort to minimize the likelihood of a device not connecting to a server.
Devices making use of the cellular network and associated internet
infrastructure are subject to those systems’ quality of service and
availability. The device will make every attempt to engage these systems however
their availability is not under its control.

     

    
      	
              5.1.3  

            	
              SYSTEM
      RELIABILITY

            

    

    This
statement of work and associated specifications do not include specific
requirements for the ActiveCare Service Center or its
database(s).  Quectel recommends the use of redundant or back-up
equipment to ensure service. Dual servers, gateways and geographic separation
can greatly improve server availability, reliability and fault tolerance
(equipment failure) at the expense of additional equipment and operating
expenses. The ActiveCare Service Center is the responsibility of ActiveCare
Inc..

     

     

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 13
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    
      	
              6  

            	
              Development
      Strategy

            

    

    

    Normally,
it will take about 8 months to develop devices described of this scope, however
Quectel has done everything within its power to accelerate the development to
complete it substantially sooner. The following figure outlines the estimated
development timeline. Please note that this estimated development timeline
requires both sides to work closely on product definition, prototype
confirmation, working sample testing and  confirmation, field testing,
golden sample confirmation, etc. Any delay schedule extended in these actions
may lead to the delay of whole schedule.

     

    Refer to
the disbursement schedule for the milestone payments.  This schedule
is subject to change as engineering changes are evaluated and/or
implemented.

     

    

    

    

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 14
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    

    ASSUMPTIONS

    

    The
following assumptions have been made concerning the development effort
scope.

    
      	
              ·  

            	
              No
      AMPS operation.  Analog cellular will not be
      supported.

            

    

    
      	
              ·  

            	
              The
      server application may be developed under a separate
    contract.

            

    

    
      	
              ·  

            	
              The
      performance of the cellular network and GPS receiver is subject to
      location and is beyond the control of Quectel, the device, and ActiveCare,
      Inc.

            

    

    
      	
              ·  

            	
              Quectel
      will perform lab tests on all
devices.

            

    

    
      	
              ·  

            	
              ActiveCare,
      Inc. will perform field trials and
evaluations

            

    

    
      	
              ·  

            	
              ActiveCare
      Inc. will be responsible for certification testing and submission
      fees.  Submission to the FCC is expected to occur at the
      pre-production milestone coincident with the beginning of the
      manufacturing phase.  This makes the assumption that no
      additional changes would be required pending FCC approval.  If
      changes are required, the manufacturing completion milestone may be
      affected.

            

    

    
      	
              ·  

            	
              Quectel
      will be responsible for the costs associated with assemblies, prototype
      chargers and engineering samples.  These have been included in
      the NRE charger.

            

    

     

    
      	
              6.1  

            	
              COMMUNICATIONS
      MODEL

            

    

    The
communications model used to exchange data between the device and the server is
a combination of encrypted packet data and SMS messages. In most cases, the
device will communicate with the server through the GPRS connect to save
communication cost, only in some specified cases such as an emergency alert,
device is in a call, or GPRS connection is not available shall the device
exchange data with the server by SMS messages. Details of
the  communication model for each case are defined in the description
as appendix A. It has been Quectel’s experience that the communications model
may change as development proceeds and priorities shift from one item to
another. For this reason, the communications model is designed to be flexible
and can accommodate moderate changes very easily.

    

    
      	
              6.2  

            	
              REMOTE CONTROL AND
      MANAGEMENT

            

    

    The
remote control and operational management of the device is accomplished through
the use of the wireless communications modem.  Command messages may
arrive via SMS or IP data packets but will be treated in the same fashion.
Responses and acknowledgements are handled according to the delivery mechanism.
Messages sent from any originating source on the internet will arrive at the
device via the modem, after which they are decoded and processed. The
communication model will be defined in an API Description, which will
include

    
      	
              ·  

            	
              theory
      of operation

            

    

    
      	
              ·  

            	
              a
      definition of the protocols involved (such as UDP, TCP, IP, SMS or other
      messaging protocols as needed)

            

    

    
      	
              ·  

            	
              device
      function definitions (including status, request, response and
      acknowledgement message
descriptions)

            

    

    
      	
              ·  

            	
              For
      both SMS and GPRS packets, provide standardized definition of packet
      construct including standardized packet headers and defined
      fields.

            

    

     

     

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 15
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    
      	
              ·  

            	
              transmission
      and exception handling rules implemented in the Senior Care
      Devices.  Including rules and methods implemented for
      retransmission, error detection, packet handshaking (including ack/nack
      protocols);

            

    

    
      	
              ·  

            	
              some
      example messages.

            

    

    

    
      	
              6.3  

            	
              GPS

            

    

    The GPS
receiver used in the Senior Care Companion Device will make use of the US
government’s system of global positioning satellites to derive the location of
the device as represented by a latitude and longitude coordinate pair. Since
selective availability (SA) has been turned off, all GPS receivers have the same
access to the GPS signal. As well a data channel contained in the GPS signal
provides the ephemeris data (almanac) used by the receiver to correct for
atmospheric effects and satellite orbit.

    

    Quectel
will design the Senior Care locationing services based solely on autonomous GPS
operation using a high accuracy SirRF Star III or MTK MT3329
receiver.

    

    
      	
              6.4  

            	
              WATERPROOF
      DESIGN

            

    

    The
design of the Senior Care Wrist Device  shall be waterproof the meet
the standard of IP67.  The Senior Care Companion Device does not need
to be waterproof.

    

    
      	
              6.5  

            	
              SOFTWARE
      MODEL

            

    

    The
software will be created using a modular approach to ease porting portions of
the embedded application to future devices. Software is fully version controlled
and version numbers can be determined by the system or locally through the
Senior Care Wrist Device or Senior Care Companion Device data
cables.  Version number is also reported in response to remote command
requests.  The software design will contain state diagrams or charts
for ease of maintenance and modification. Built in test will be utilized
wherever appropriate.

    -
Configuration Parameters (operating values) will be retained in non-volatile
memory; these parameters will assume a default factory configuration and will be
configurable from the diagnostic interface or via the over-the-air
interface.

    - It is
expected that all timestamps will be in UTC time to eliminate time zone and
daylight savings ambiguity,

    

    
      	
              6.6  

            	
              SERVICABILITY

            

    

    Since the
device electronics may be buried in the case it may not be possible to service
all components. The design of the Senior Care Devices will focus on creating a
core engine that could be replaced without de-soldering components to ease the
serviceability of the device. The SIM card will be readily serviceable by the
ActiceCare Service Center.  The battery can be
serviceable.

     

    
      	
              6.7  

            	
              FORWARD
      ACCOMODATION

            

    

    Service
protocols and formats are to allow for future projects.   For
example, future products may require enhanced feature based on current protocols
to report more information or parameters to server, then a new command in
protocol will be created instead of changing the original command, in this way,
the updated protocol can keep the forward accommodation with previous
protocol.

     

     

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 16
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    

    
      	
              7  

            	
              Functional
      Milestones

            

    

     

    
      	
              7.1  

            	
              SOW AND MOBILIZATION
      PAYMENT

            

    

    

    This
portion of the development is initiated by the signing of the SOW and the
disbursement of the mobilization payment. These funds are used to initiate the
engineering effort (50%).

    

    Prior to
concept signoff, GA100 (Companion Device) Technical Specification and GW100
(Wrist Device) Technical Specification and Product Definition for
ActiveOne+ be completed and submitted for review as part of this
statement of work.

    

    On each
milestone, Activecare should give feedback or confirmation to Quectel within two
weeks or time to be agreed by both parties, otherwise the schedule as proposed
may be delayed.

    

    
      	
              7.2  

            	
              CONCEPT SIGNOFF
      MILESTONE

            

    

    

    Acceptance
of the specifications and statement of work is integral to this
milestone.

    

    At this
stage, the statement of work is set.  Changes or revisions to the
project scope, deliverables, specifications, product design, or other relevant
sections in the statement of work are still possible or may even be required
after concept signoff.  Since changes or revisions may impact the
schedule and/or cost, they must be discussed between Quectel and ActiveCare and
will be subject to an Engineering Change process.  To facilitate this,
an Engineering Change Request (ECR) is generated by either ActiveCare or
Quectel.  Upon acceptance of the ECR, an Engineering Change Order
(ECO) will be generated by QUECTEL to document changes.  This document
will supplement and/or supercede relevant sections in the Statement of Work or
other ECOs.

    
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 17
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    

    
      	
              7.3  

            	
              LAB PROTOTYPE
      MILESTONE (HAND-BUILT CNC
      SAMPLES)

            

    

    

    The
laboratory prototypes constitute the earliest deliverable hardware. ID/MD work
shall be finished in this stage, the hand built casing samples and the first
version of electronics boards shall be ready. Two (2) sets of product prototype
samples (PPS) for the companion and wrist devices will be provided to
demonstrate the proof-of-concept and feasibility and operation. Additional sets
may be available at a cost of $ 500 (USD) each.

    

    The
devices support the functions as listed below. Due to the time constraints, the
product prototype samples (PPS) will only support some basic
functions.

    

    PPS
samples will be used by QUECTEL engineers to aid in development of the firmware
and electronics.  As development proceeds, firmware and hardware
modifications may be made to these devices to enhance their performance. It is
important to note that since these devices will be superceded by the working
samples, their usefulness may be short lived and may not be maintained for the
life of the development project. This platform will be delivered to ActiveCare
to permit preliminary demonstrations and marketing activities.

    

    A
payment, associated with this milestone, is used to make 100% of hard casing
tool charge.

    

    Quectel
will authorize their vendor to start fabrication of  the casing tools
after ActiveCare confirms the mechanical design of the two devices (WD, CD)
based on the PPS samples and final payment for this stage.

     

    
      	
              7.3.1  

            	
              COMPANION
      DEVICE

            

    

    

    The first
version of electronics board shall be ready in this stage .The ID/MD design is
finished and several hand built casings will be made to prove the design. There
are still some possible changes to the MD design before making the formal casing
tools.

    

    Some
basic functions such as obtaining a GPS fix or making a phone call may be
supported if the antenna is ready. But please note the main purpose of PPS
samples is to prove the MD design. The adjusting of antenna will need about 1
week. If Active Care wants to get the PPS for confirmation and move to next
stage soon, Quectel will send out the PPS samples without antenna. Otherwise
Quectel will wait for the antennas to build final PPS samples which can support
GPS fixing and phone call.

    

    Please
note at this stage the Bluetooth function is still in developing and debugging.
It is possible that the Bluetooth function still can’t demo.

     

    
      	
              7.3.2  

            	
              WRIST
      DEVICE

            

    

    

    The first
version of electronics board shall be ready in this stage. The ID/MD design is
finished and several hand built casings will be made to prove the design. There
are still some changes to the MD design before making the formal casing
tools.

    
  

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 18
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    Please
note at this stage the Bluetooth function is still in developing and debugging.
It is possible that the Bluetooth function still can’t demo.

     

    
      	
              7.3.3  

            	
              DOCKING
      STATION

            

    

    

    The
docking station will not be ready at this stage. The MD design of docking
station will be started after  the hand built PPS samples of the
companion device have been provided to ActiveCare.

    

    As a part
of docking station, two (2) final wall chargers will be delivered at this
stage.

     

    
      	
              7.3.4  

            	
              DELIVERIES

            

    

    (On or
before Milestone Date):

    

    
      	
              Companion
      Device

            	
              ● 
      2
      PPS samples

              ● 
      Unit
      may be able to get GPS location. (Not mandatory )

              ● 
      Unit
      may be able to make phone call. (Not mandatory )

               

            
	
              Wrist
      Device

            	
              2
      PPS samples

            
	
              Docking
      Station

            	
              2
      final Wall chargers

            
	
              Milestone

            	 
      

    

    

    
      	
              7.4  

            	
              Alpha
      MILESTONE
      (Working Samples)

            

    

    

    The Alpha
unit is the first iteration of the device that uses the casings which ware made
by hard casing tools. We call the samples in this stage “Working samples”. The
working samples support the functions as listed below. Due to the time
constraints the working samples will support a limited feature set. The working
samples should be able to be modified as development proceeds, to support new
features as they become available.  The working samples will not be
recommended for resale.

     

    
      	
              7.4.1  

            	
              COMPANION
      DEVICE

            

    

    

    The hard
casing tools of companion device will be made. The first 50 formal casings will
be made. Five (5) sets of empty casings shall be provided to ActiveCare as early
as possible as part of the tool acceptance procedure.  ActiveCare must
approve the casings prior to assembly and shipment of Alpha units by
Quectel.  Five (5) alpha units will be delivered to Active Care as
free samples for testing and development. The other casing samples will be used
by Quectel for software development, hardware debugging, hardware testing and
reliability testing.

    The first
version of firmware will be released. The draft communication protocol will be
finished at this stage. User can configure the device with PC software and data
cable. Most of the functions will be implemented based on the specification.
There are still some potential bugs in software need to be fixed.

    

    The
hardware of companion device will be submitted for full testing at this stage.
Based on the testing result Quectel will modify the hardware to improve the
performance if it is needed.

    
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 19
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    

    A
payment, associated with this milestone, is used to cover the 25% of engineering
effort.

     

    
      	
              7.4.2  

            	
              WRIST
      DEVICE

            

    

    

    The hard
casing tools of wrist device will be made. The first 50 formal casings will be
made. Five (5) sets of empty casings shall be provided to ActiveCare as early as
possible as part of the tool acceptance procedure.  ActiveCare must
approve the casings prior to assembly and shipment of Alpha units by
Quectel.  Five (5) working samples will be delivered as samples for
testing and development. The other samples will be used by Quectel for software
development, hardware debugging, hardware testing and reliability
testing.

    
 

    The first
version of firmware will be released. The wrist device can be used to demo the
voice call function. But the data report function is still in
developing.

     

    
      	
              7.4.3  

            	
              DOCKING
      STATION

            

    

    

    Two (2)
hand-built casings of docking station will be made at this stage. One of them
will be kept by Quectel for developing and testing. The other will be delivered
to Active Care for confirmation. Quectel will authorize their vendor to
fabricate the formal casing tool after confirmation from Active
Care.

     

    
      	
              7.4.4  

            	
              DELIVERIES

            

    

    (On or
before Milestone Date):

    

    
      	
              Companion
      Device

            	
              ● Five
      (5) empty casing sets shall be delivered for tool acceptance by
      ActiveCare

              ● Five
      (5) alpha units will be delivered for testing.

              ● Air
      interface protocol has been implemented

              ● 2
      USB data cable will be delivered.

            
	
              Wrist
      Device

            	
              ● Five
      (5) empty casing sets shall be delivered for tool acceptance by
      ActiveCare

              ●Five
      (5) alpha units will be delivered for testing.

              ● Hands Free function can be used
      for demo

            
	
              Docking
      Station

            	
              ● One
      hand-built docking station will be delivered for approval  by
      ActiveCare

            
	
              Milestone

            	
              ● The
      protocol document will be released for review

              ● The
      PC software will be released for
testing.

            

    

    

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 20
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

     

    
      	
              7.5  

            	
              BETA
      MILESTONE
      (TEST SAMPLES)

            

    

    

    The Beta
Milestone devices are refinements of the Alpha devices in both physical and
functional performance. The circuit boards and firmware will be revised to
optimize the manufacturability, functionality. The Beta deliveries will not
generally be recommended for resale.

    

    We call
the samples in this stage “test samples”. The test samples will implement almost
all of the functions in specification and the casing of it ware built by the
optimized casing tool. But the firmware still needs to be tested and fix the
potential bugs.

    

    The test
samples can be used to support certification like FCC.

    

    A
possible payment, associated with this milestone, is used to cover the
third-party certification and approval in test lab in China if be required by
Activecare

     

    
      	
              7.5.1  

            	
              COMPANION
      DEVICE

            

    

    

    10 test
samples will be delivered to Active Care for testing. The communication protocol
between companion device and backend server is finished. Active can implement
the way to control the companion device by backend server. Quectel will provide
the protocol document and PC software to help the development of backend
server.

    

    The
communication between companion device and wrist device will be implemented at
this stage. The functions related to it can be tested.

    

    10 of the
units produced in the Pre-production phase may be used to support certification
testing and approvals.

     

    
      	
              7.5.2  

            	
              WRIST
      DEVICE

            

    

    

    10 test
samples will be delivered to Active Care for testing, and the data report
function of it can be tested.

    

    The PC
software which is used to match the wrist device to companion device will be
released.

     

    
      	
              7.5.3  

            	
              DOCKING
      STATION

            

    

    

    Five (5)
sets of empty casings shall be provided to ActiveCare as early as possible as
part of the tool acceptance procedure.  ActiveCare must approve the
casings prior to assembly and shipment of functional units by Quectel. Ten (10)
docking station samples which were built by hard casing tool will be delivered
to Active Care for testing and confirmation.

    

    

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 21
of 45

          

        

      

      
        
        

        
          

        

      

      
        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

     

    
      	
              7.5.4  

            	
              DELIVERIES

            

    

     

    
      	
              Companion
      Device

            	
              ●   Ten
      (10) test samples will be delivered for testing.

              ●   Air
      interface protocol has been implemented

            
	
              Wrist
      Device

            	
              ●   Ten
      (10) test samples will be delivered for testing.

              ●   Data report by Bluetooth can be
      supported.

            
	
              Docking
      Station

            	
              ●
        Five
      (5) empty casing sets shall be delivered for tool acceptance by
      ActiveCare

              ● 
       10
      formal samples will be delivered.

            
	
              Milestone

            	
              ●  
      The
      protocol between companion device and backend server is
      finalized.

              ●  
      Most
      of the functions in specification are finalized.

              ●  
      The
      PC software which is used to match the wrist device to companion device
      will be released.

               

            

    

     

    
      
        	7.6 	PRE-PRODUCTION MILESTONE (GOLDEN
      SAMPLES)

      

    

     

    The
pre-production milestone means the hardware and software have been proved. All
the requirements have been implemented and tested. The hardware testing and
reliability testing is finished and all issues are fixed. The manufacturing
process has been optimized and ready for mass production. The casing tools have
also been optimized and ready for mass production

    

    We call
the samples in this stage “Golden Samples”. They can be used for resale if
Active Care confirms the firmware and tolerance of appearance and
texture.

    

    A
payment, associated with this milestone, is used to cover the 25% of engineering
effort.

     

    
      	
              7.6.1  

            	
              COMPANION
      DEVICE

            

    

    

    100 PCS
units will be ready for sale and 10 of them will be delivered to Active care for
free.

     

    
      	
              7.6.2  

            	
              WRIST
      DEVICE

            

    

    

    100 PCS
units will be ready for sale and 10 of them will be delivered to Active care for
free.

     

    
      	
              7.6.3  

            	
              DOCKING
      STATION

            

    

    

    100 PCS
units will be ready for sale and 10 of them will be delivered to Active care for
free.

     
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 22
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    DELIVERIES

    

    
      	
              Companion
      Device

            	
              ● 
      Ten
      (10) golden samples will be delivered for confirmation

            
	
              Wrist
      Device

            	
              ● 
      Ten
      (10) test samples will be delivered for confirmation.

            
	
              Docking
      Station

            	
              ● 
      10
      formal samples will be delivered.

            
	
              Milestone

            	
              ● 
      All
      functions in specification are
finalized.

            

    

     

    

    
      	
              7.7  

            	
              MASS PRODUCTION
      MILESTONE

            

    

     

    
      	
              7.7.1  

            	
              COMPANION
      DEVICE, WRIST DEVICE, DOCKING
STATION

            

    

    

    The mass
production phase targets the production of devices for resale to end customers.
The devices will be fully functional.   All manufacturing,
installation and user documentation will be provided. The companion device,
wrist device and docking station mass production milestone will be considered
complete when QUECTEL demonstrates the readiness of them for mass production.
The tooling will be property of Activecare.

     

    
      	
              7.7.2  

            	
              DELIVERIES

            

    

    

    
      	
              Companion
      Device

            	
              Final
      casing tools

              Final
      released firmware

              Final
      hardware

            
	
              Wrist
      Device

            	
              Final
      casing tools

              Final
      released firmware

              Final
      hardware

            
	
              Docking
      Station

            	
              Final
      casing tools

              Final
      hardware

            
	
              Milestone

            	
              User
      Documentation will be provided in electronic
  format

            

    

     

    
      	
              7.8  

            	
              DOCUMENTATION
      DELIVERABLES

            

    

     

    
      	
              User
      Manual

            	
              Documentation
      for the field Supervision Officer showing how to attach and detach the
      device. How to change SIMs, external battery etc.

            
	
              Communication
      Protocol Guide

            	
              Describe
      the air interface protocol between companion device and backend
      server.

            

    

    
 

    
      	
              7.9  

            	
              PC SOFTWARE
      DELIVERABLES

            

    

    

    
      
        	
                Bluetooth
      match tool

              	
                The
      PC software which is used to match companion device and wrist
      device

              

      

       
 

      
        
          
            Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

            Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

            
              Page 23
of 45

            

          

           

        

        
           

          
            

          

        

        
           

          
            

            Quectel Wireless Solutions
Ltd.

            Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

            Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

          

        

      

       

      
        	
                Manager
      tool

              	
                The
      PC software which is used to configure the companion device by data
      cable

              

      

    

     

     

     

    
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 24
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    
      	
              8  

            	
              Development
      Cost Breakdown

            

    

    

    
      	
              8.1  

            	
              DEVELOPMENT COSTS
      OVERVIEW

            

    

    

    
      	
              Senior
      Care System

              Devices

            	
              Wrist
      Device

            	
              Engineering
      Cost

              (labor
      and material)

            	
               $ 
      150,000

            
	 
      	 
      	
              Case
      Tooling

            	
               $   
      70,000

            
	 
      	
              Companion
      Device

            	
              Engineering
      Cost

              (labor
      and material)

            	
               $
         30,000

            
	 
      	 
      	
              Case
      Tooling

            	
               $   
      50,000

            
	 
      	
              Docking
      Station

            	
              Engineering
      Cost

              (labor
      and material)

            	
               $   
      20,000

            
	 
      	 
      	
              Case
      Tooling

            	
               $   
      40,000

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
               

            
	
              Total
      Fees (USD)

            	 
      	 
      	
               $360,000

            

    

    

    
      	
              Quectel
      Labor & Materials

            	
               $
      200,000

            
	
              Case
      tooling Costs

            	
               $
      160,000

            

    

    

    
      	
               
      

            	
              Note

            	
              Travel
      inside China will be done at Quectel’s discretion and
  cost.

            

    

    
      
        	
                 
      

              	
                 

              	
                Travel
      outside China will be done at ActiveCare, Inc. s’ discretion and
      cost.

              

      

    

    
      	
               
      

            	
              Certification
      testing fees are the responsibility of ActiveCare,
  Inc.

            

    

    
      	
               
      

            	
              Cost
      to build additional samples beyond those included in Charpter 7 will need
      to be discussed with ActiveCare,
Inc.

            

    

    
      
        	
                 
      

              	
                 

              	
                Server
      application and API are not included as part of this
  SOW.

              

      

       

    

    Travel
charger for the wrist device are not included

    

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 25
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    TRAVEL
EXPENDITURES

    

    Travel
inside China will be done at Quectel’s discretion and cost. Travel outside China
will be done at ActiveCare, Inc. s’ discretion and cost. Travel outside China
must be pre-approved by ActiveCare, Inc. before any commitment to reimburse is
in place.

    

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 26
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    

    
      	
              8.2  

            	
              CERTIFICATION AND
      APPROVAL FEES

            

    

    

    The
certification fees detailed below are the responsibility of ActiveCare, Inc. and
are estimates only, prices may vary depending upon the test facility used. FCC
testing includes parts 15B, 22 and 24 and part15C (Bluetooth) and SAR for the
Senior Care Companion Device, FCC testing includes, parts 15B, 22 and 24 and
part15C (Bluetooth)  for the Senior Care Wrist Device , UL
certification for Docking station. The battery does not require certification
however battery manufacturers of Lithium-polymer batteries require their own
conformance testing for liability purposes. Quectel will compile the documents
required to submit for FCC and to assist the test facility (with phone support)
in their testing.

    

    SAR
certification is required for the Senior Care Companion Device and Senior Care
Wrist Device since it operates within 20 cm of the human body. Quectel will
compile the documents required to submit for SAR and to assist the test facility
(phone support) in their testing.

    

    IC
testing is required only if the device is intended to be sold into
Canada.

    

    The
device must be submitted to PTCRB testing at an approved facility in order to be
operated on a carriers network. This testing is for the Senior Care Companion
device only. Quectel will compile the documents required to submit for PTCRB and
to assist the test facility (phone support) in their testing.

    

    Carrier
approval, which has no associated cost, is still required and could incur
incidental costs to assist the carrier in their testing such as travel to
overseeing the tests or answer questions on operation of the device.
Documentation for Carrier certification is limited to operator’s manual and
proof of FCC, SAR and PTCRB certification.

    

    CSA
approvals are not required.

    

    All
certification and approvals testing is the direct cost responsibility of
ActiveCare, Inc. Quectel
can also help to suggest a test lab local in China and support devices and
Docking Station certification.

    

    The
estimated certification costs need more discussion with test labs to get more
accurate reference.

     

    
      	
              APPROVAL
      TYPE

            	
              FEES
      (EST)

            
	
              FCC
      Approval (Wrist Device)

            	
               $   
      8,000

            
	
              FCC
      Approval (Companion Device)

            	
               $  10,000

            
	
              IC
      Approval (Canada Wrist Device)

            	
               $  
       4,000

            
	
              IC
      Approval (Canada Companion Device)

            	
               $   
      4,000

            
	
              Carrier
      Approval

            	
               $     TBD

            
	
              PTCRB
      Approval (USA, Companion Device)

            	
               $  20,000

            
	
              UL
      Approval (Docking Station)

            	
               $     TBD

            
	
              Hearing
      Aid Compatibility testing (Companion device)

            	
               $     TBD

            
	
              Hearing
      Aid Compatibility testing (Wrist device)

            	
               $     TBD

            
	
              Estimated
      Approval Fees Total

            	
               $

            

    

    

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 27
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    
      	
              8.3  

            	
              DISBURSEMENT
      SCHEDULE

            

    

     

    

      
        	
                DATE

              	
                MILESTONE

              	
                DISBURSEMENTS1

              	
                TOTAL

                 

              
	
                Quectel
      Labor & Materials

              	
                Case
      Tooling Charge

              
	
                Dec
      04 2009

              	
                Contract
      Signoff

              	
                $100,000

              	
                 

              	
                $100,000

              
	
                Mar
      12 2010

              	
                Lab
      Prototype Delivery

              	 
      	
                $160,000

              	
                $160,000

              
	
                May
      07 2010

              	
                Working
      Sample Delivery

              	
                $50,000

              	 
      	
                $50,000

              
	
                Aug
      06 2010

              	
                Golden
      Sample Delivery

              	
                 $50,000

              	 
      	
                $50,000

              
	
                TOTALS

              	 
      	
                $200,000

              	
                $160,000

              	
                $360,000

              

      

      

        

      

       

      

    

     

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 28
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    
      	
              9  

            	
              Risk
      Assessment

            

    

    

    
      	
              9.1  

            	
              COMPONENT LEAD
      TIME

            

    

    

    The
normal component lead time Quectel can achieve is 8 weeks, but Quectel can not
assure the component lead time to be as short as 8 weeks. Quectel will try its
best during the design to shorten the component lead time to 8 weeks, but the
component lead time in market is out of the control of Quectel.

    

    It is
Quectel’s responsibility to purchase adequate stock of components and material
to ensure engineering devices can be fabricated, but it is ActiveCare’s
responsibility to place orders for more devices for field trial, marketing
promotion and volume sale, etc.

     

    
      	
              9.2  

            	
              BLUETOOTH FUNCTION
      RANGE

            

    

    

    The Class
1 Bluetooth communication range needs to be 100 meters in open area. For the
real Bluetooth communication range will highly depend on the communication
environment, the communication range could be less than 100 meters in some
special environment such as a building made of reinforced concrete.

     

    
      	
              10  

            	
              Options

            

    

    

    
      	
              10.1  

            	
              SCHEDULE
      ACCELERATION

            

    

    

    
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 29
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    

    
      	
              11  

            	
              Unit Price for
      Devices and
      Production Delivery Payment

            

    

    

    Normally
the Senior Care Wrist Device, Senior Care Companion Device, Docking Station and
related accessory are provide as a set at price of US $160.00 FOB SHANGHAI. The
packaging list is as following table:

    

    
      	
              Item

            	
              Note

            
	
              Senior
      Care Wrist Device with battery built in

            	 
      
	
              Senior
      Care Companion Device

            	 
      
	
              Docking
      Station

            	 
      
	
              Battery
      for Senior Care Companion Device

            	 
      
	
              Charger
      for Senior Care Companion Device (for both docking station and
      travel)

            	 
      

    

    Note: The
travel charger for Wrist device are not included

    

    For
production delivery, ActiveCare need to put purchase order in advance and pay
some percentage of total delivery value as deposit, then Quectel will arrange to
purchase component and material. Detail payment arrangement for production
delivery payment will defined in another agreement between ActivcCare and
Quectel.

     

    
      	
              12  

            	
              MOQ
      and Lead-time

            

    

    

    MOQ
(Minimum Order Quantity) for the Senior Care Devices is 2,000 pieces per order.
The normally lead-time for material purchasing is 8 weeks, there is also extra
1-2 weeks for manufacturing and export. So the lead-time for purchase order to
delivery will be about 9-10 weeks. Quectel will try his best to meet or even
shorten this delivery lead-time, but Quectel can not warranty this lead-time for
the lead-time of material purchasing in market will change at different time
point and is not under control of Quectel.

    

    Strategic
procurement may be necessary due to long lead-time components or materials, or
EOL of any critical components after years of runing.  In such an
event, Quectel will inform Active, Inc. as early as possible to the lead-times
for these items so that Activecare can purchase them in a timely
manner.  This will minimize any potential impact on the production
delivery schedule.

     

    
      	
              13  

            	
              Warranties
      By QUECTEL

            

    

    

    ActiveCare
has all responsibilities for after sales services. And Quectel shall provide 2%
CBU (Complete build units) free of charge of total product revenues purchased by
Buyer for his after

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 30
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    sales
services. Spare parts for after sales services other than 2% of warranty service
revenues are purchased by ActiveCare’s own cost regarding spare parts price
offered from Quectel. The spare parts price should be reasonable, meaning at
factory cost +2%, as ActiveCare well as any such other repair and/or software
flashing equipment provided by Quectel to and actual cost +5%. Quectel will
provide ActiveCare with a full documentation set per device to enable ActiveCare
to repair devices at the Active’s repair center. If ActiveCare want return
default devices to Quectel to be repaired, Quectel will charge for the manual
labor and all delivery cost is direct responsibility of ActiveCare.

    

    

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 31
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    Appendix
A - Product Definition for ActiveOne+

    Issue
Date: 2009-10-20

    Status:
Rev. 8

     

    
      
        	
                1.0

              	
                Overview

              

      

       

      The
purpose of this document is to provide a vision for the function of the product
and its use by the elder client, post operative patient, or those requiring
home-based assistance.  This document will be used to develop the
product and functional specifications.  It will also drive the
industrial design effort to create a product design that is nicely styled,
functional, and accommodating to the user.  The goal is to develop a
product platform that will be well-received in the marketplace and can go
head-to-head with the competition’s current or next generation
offerings.

      

      
        	
                2.0

              	
                Definition
      of User

              

      

      

      
        	
                 
      

              	
                2.1.

              	
                The
      end user may be an elderly customer who is experiencing some symptoms of
      aging that result in a decrease in certain abilities These impairments may
      be in the following categories:

              

      

      

      
        	
                 
      

              	
                2.1.1.

              	
                Vision
      – A decrease in the ability to see objects close by both with or without
      glasses making it a challenge to read the text on an LCD
      screen.  A reduction in melanin accompanies age progression
      resulting in the need for increased illumination or contrast to see
      details such as product graphics (labels) for
  buttons.

              

      

      
        	
                 
      

              	
                2.1.2.

              	
                Hearing
      – A decrease in hearing ability in one or both ears would require an
      increase in volume for spoken messages from the device.  Some
      older adults also experience hearing distortion or have difficulty with
      auditory discrimination (the ability to separate conversation from
      background noise).  Some clients may use hearing devices to
      correct their auditory deficiencies but may not always be wearing the
      device(s) or have the volume set for a normal level of
      conversation.  Compatibility of the ActiveCare+ device with
      hearing aids will be important.

              

      

      
        	
                 
      

              	
                2.1.3.

              	
                Hand
      strength and dexterity – There are many causes of loss of dexterity in the
      fingers and hands.  Arthritis, stroke, muscle atrophy, disease,
      the effects of medication, and others all impede dexterity and limit the
      ability of the user to find and press a button, for
      example.  The ability of a finger to exert an acceptable force
      level may be restricted or to maintain the force
      consistently.  A fluttering of the finger could induce multiple
      depressions of the actuator button when a single actuation was
      intended.

              

      

      
        	
                 
      

              	
                2.1.4.

              	
                Mobility
      – Clients may typically experience a reduction in mobility due to disease
      and the aging function.  Therefore, if the companion device is
      left in the docking station, the client will be unable to access it in an
      emergency due to limited mobility, and the wrist device will be the sole
      means of communication to the Call Center or 911.  As part of
      the mobility issue, balance will also be affected.  Even a
      simple task such as reaching with one hand across the body to the wrist
      device on the opposite hand could cause an imbalance and risk of falling
      if the client is standing and supported by a cane or by holding onto a
      wall for stability.

              

      

      
        	
                 
      

              	
                2.1.5.

              	
                Skin
      sensitivity – As we age, our skin gets thinner and we are more easily
      bruised even performing normal activities.  A wrist device could
      cause bruising even when worn normally so the shape of the back surface of
      the device, the device weight, and the wrist band design, tightness and
      accommodation are important considerations.  If the wrist device
      is worn in the shower or bath, soap and moisture could accumulate between
      the device and the skin and later cause a rash or
      irritation.  Material selection and surface texture are other
      considerations for skin
sensitivity.

              

      

        

       

    

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 32
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    
    

     

    
      	
               
      

            	
              2.1.6.

            	
              Cognitive
      processing – Clients are likely to experience some mental processing
      issues from time-to-time which may appear as delayed reactions or
      confusion.  Especially after a fall or when “under pressure” to
      respond to a voice prompt, confusion could delay the wearer from taking
      the appropriate action.  Sometimes the wrong button could be
      pressed, the message misunderstood, or no action taken at
      all.  If the client considers the system difficult to use during
      everyday activities or confusing in its operation, this feeling may
      translate into one of annoyance for the device.  As a result,
      the client may stop wearing the device and utilizing the
      service.

            

    

    

    
      	
               
      

            	
              2.2.

            	
              Keeping
      all of the above considerations in mind throughout the development
      process, we will seek to make the device as easy to use and understand as
      possible for the elder adult, post operative patient, or those requiring
      home-based assistance.

            

    

    

    
      	
              3.0

            	
              Definition
      of Wrist Device

            

    

    

    
      	
               
      

            	
              3.1.

            	
              Physical
      Characteristics

            

    

    
      	
               
      

            	
              3.1.1.

            	
              The
      wrist device will be of a size, shape and weight suitable for an adult to
      wear on their wrist both day and night, 24 hours per
  day.

            

    

    
      	
               
      

            	
              3.1.1.1.

            	
              Dimensions
      shall not exceed:  TBD (dependent on size of operating
      components)

            

    

    
      	
               
      

            	
              3.1.1.2.

            	
              The
      shape of the device will enable a comfortable wearing
      experience

            

    

    
      	
               
      

            	
              3.1.1.3.

            	
              Weight
      shall not exceed:  TBD (partially dependent on weight of
      operating components)

            

    

    
      	
               
      

            	
              3.1.2.

            	
              The
      wrist device will be secured by a strap which is adjustable by the user or
      by a care provider for fine adjustments.  Coarse adjustments
      (the initial fitting) may be performed by a technician or other qualified
      individual.

            

    

    
      	
               
      

            	
              3.1.2.1.

            	
              In
      use, the wrist device may be secured on either the right or left wrist
      allowing the user to see the time display and graphics next to the
      LEDs.

            

    

    
      	
               
      

            	
              3.1.2.2.

            	
              The
      strap shall be adjustable to accommodate a range of wrist diameters from
      TBD to TBD

            

    

    
      	
               
      

            	
              3.1.3.

            	
              Material
      selection for the device case and
band

            

    

    
      	
               
      

            	
              3.1.3.1.

            	
              The
      case and strap shall be made of materials that are comfortable for
      extended wear, resistant to perspiration,  and do not encourage
      the growth of bacteria

            

    

    
      	
               
      

            	
              3.1.3.2.

            	
              The
      case, strap, and decoration or graphics shall be made of materials that
      are cleanable and waterproof

            

    

    
      	
               
      

            	
              3.1.3.3.

            	
              The
      case, strap, and decoration or graphics shall be made of materials that
      are resistant to scratches and
abrasion

            

    

    
      	
               
      

            	
              3.1.3.4.

            	
              The
      case, strap, and decoration or graphics shall be made of materials that
      are colorfast and resistant to the aging effects from exposure to UV or IR
      radiation

            

    

    
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 33
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

     

    
      
        	
                 
      

              	
                3.1.3.5.

              	
                The
      case, strap, and any decoration or fittings shall be made of materials
      that do not oxidize

              

      

      
        	
                 
      

              	
                3.1.4.

              	
                Industrial
      design of the wrist device

              

      

      
        	
                 
      

              	
                3.1.4.1.

              	
                The
      design effort is underway and will involve several iterations and
      opportunities for review and comment.  One or more formal or
      informal focus groups with elder adults may be held to solicit feedback on
      the design and user interface

              

      

      
        	
                 
      

              	
                3.1.4.2.

              	
                Graphics,
      decoration, and labeling will be identified as the industrial design for
      the wrist device is developed
(3.1.4.1)

              

      

      
        	
                 
      

              	
                3.1.5.

              	
                Battery
      module

              

      

      
        	
                 
      

              	
                3.1.5.1.

              	
                A
      build in battery module will be
supplied;

              

      

      
        	
                 
      

              	
                3.1.5.2.

              	
                The
      battery will be capable of being removed and replaced by the service
      technician

              

      

      
        	
                 
      

              	
                3.1.5.3.

              	
                The
      battery module will be recharged through a two point contact connector on
      the case of wrist device

              

      

      
        	
                 
      

              	
                3.1.6.

              	
                Ingress
      Protection Standard

              

      

      
        	
                 
      

              	
                3.1.6.1.

              	
                The
      wrist device will be built and tested to meet the IP67 standard (commonly
      referred to as “waterproof”)

              

      

      
        	
                 
      

              	
                3.1.7.

              	
                Firmware
      updates

              

      

      
        	
                 
      

              	
                3.1.7.1.

              	
                Firmware
      updates will be provided through connection with a special fixture to be
      used by technicians

              

      

      
        	
                 
      

              	
                3.1.7.2.

              	
                Five
      contact points (with three (3) contact points for firmware upgrade and two
      (2) for recharging) will be provided for technician
  use

              

      

      
        	
                 
      

              	
                3.1.8.

              	
                Time
      display

              

      

      
        	
                 
      

              	
                3.1.8.1.

              	
                The
      current, local time shall be displayed on an LCD screen on the wrist
      device

              

      

      
        	
                 
      

              	
                3.1.8.2.

              	
                The
      display shall be digital with numerals of at least TBD mm in
      height

              

      

      
        	
                 
      

              	
                3.1.8.3.

              	
                The
      LCD screen shall provide a minimal brightness of
  TBD

              

      

      
        	
                 
      

              	
                3.1.8.4.

              	
                The
      correct time will be set automatically by the companion
    device

              

      

      
        	
                 
      

              	
                3.2.

              	
                User
      interface (functions and alarms) for the wrist
  device

              

      

      
        	
                 
      

              	
                3.2.1.

              	
                Buttons
      and switches

              

      

      
        	
                 
      

              	
                3.2.1.1.

              	
                Power
      button:  A single actuation of one (1) second minimum shall
      activate power “on.”  A single actuation of three (3) seconds
      minimum shall deactivate the device (power
  “off”)

              

      

      
        	
                 
      

              	
                3.2.1.1.1.

              	
                The
      minimum force required to actuate the Power button shall be TBD when
      measured at the center of the
button.

              

      

      
        	
                 
      

              	
                3.2.1.1.2.

              	
                The
      color of the Power button shall be TBD (color molded in, not
      painted)

              

      

      
        	
                 
      

              	
                3.2.1.1.3.

              	
                The
      size of the Power button shall be a minimum of TBD sq.
  cm

              

      

      
        	
                 
      

              	
                3.2.1.2.

              	
                Care
      button:  A single actuation will initiate a call sequence to the
      Care Center.  A minimum actuation of two (2) seconds shall
      initiate the call.  There is no maximum duration, however the
      call will be initiated after two (2) seconds of actuation, and continued
      actuation of the button will not delay the processing or connection of the
      call

              

      

      
        	
                 
      

              	
                3.2.1.2.1.

              	
                The
      minimum force required to actuate the Care button shall be TBD when
      measured at the center of the
button.

              

      

      
        	
                 
      

              	
                3.2.1.2.2.

              	
                The
      color of the Care button shall be TBD (color molded in, not
      painted)

              

      

      
        	
                 
      

              	
                3.2.1.2.3.

              	
                The
      size of the Care button shall be a minimum of TBD sq.
  cm

              

      

       

       

    

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 34
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    
      
        	
                 
      

              	
                3.2.1.2.4.

              	
                The
      Care button shall have two raised dots molded onto its face to simulate
      the letter “C” in Braille

              

      

      
        	
                 
      

              	
                3.2.1.3.

              	
                Cancel
      button:  A single actuation of a minimum of one (1) second shall
      cancel a call or terminate the Fall Detection
  notification

              

      

      
        	
                 
      

              	
                3.2.1.3.1.

              	
                The
      Cancel button shall be smaller in size than the Care button and a minimum
      of TBD sq. cm

              

      

      
        	
                 
      

              	
                3.2.1.3.2.

              	
                The
      color of the Cancel button shall be TBD (color molded in, not
      painted)

              

      

      
        	
                 
      

              	
                3.2.1.3.3.

              	
                The
      Cancel button will require a minimum force of TBD for actuation, to be
      measured at the center of the
button

              

      

      
        	
                 
      

              	
                3.2.1.4.

              	
                911
      emergency dialing

              

      

      
        	
                 
      

              	
                3.2.1.4.1.

              	
                Actuation
      of the Cancel button for five (5) seconds shall initiate a call to 911
      emergency services but only after the Care button has been actuated in
      sequence

              

      

      
        	
                 
      

              	
                3.2.1.5.

              	
                A
      tactile feedback from all buttons shall be
  provided

              

      

      
        	
                 
      

              	
                3.2.2.

              	
                Audible
      verbal messages

              

      

      
        	
                 
      

              	
                3.2.2.1.

              	
                All
      messages to be recorded in American English with a female
      voice

              

      

      
        	
                 
      

              	
                3.2.2.2.

              	
                The
      wrist device shall be capable of presenting an audible verbal message at a
      minimum of 80dBa as measured at a distance of one (1)
  meter

              

      

      
        	
                 
      

              	
                3.2.2.3.

              	
                The
      volume shall be fixed at this level (not adjustable through the wrist or
      companion devices)

              

      

      
        	
                 
      

              	
                3.2.2.4.

              	
                Initial
      actuation of the Power button (3.2.1.1) initiates a verbal message
      indicating the device is powered “on”:  “Welcome to ActiveOne
      Plus”

              

      

      
        	
                 
      

              	
                3.2.2.5.

              	
                Secondary
      actuation of the Power button (3.2.1.1) initiates a verbal message
      indicating the device is powering “off” and shutting
      down:  “ActiveOne Plus is shutting
      down.  Goodbye”

              

      

      
        	
                 
      

              	
                3.2.2.6.

              	
                When
      a Fall Detection condition is identified, a verbal message of “fall
      detected”” will be repeated during the ten (10) second delay before a call
      is placed to the Care Center

              

      

      
        	
                 
      

              	
                3.2.2.7.

              	
                Upon
      actuation of the Care button, a verbal message of “calling Care Center”
      will repeat until the call is connected to the Care
  Center

              

      

      
        	
                 
      

              	
                3.2.2.8.

              	
                Upon
      actuation of the Cancel button, a verbal message of “call cancelled” shall
      be spoken two (2) times to acknowledge the
  command

              

      

      
        	
                 
      

              	
                3.2.2.9.

              	
                When
      an “Out of Range” condition is identified, a verbal message of “Out of
      Range” shall be stated one (1) time and shall be repeated once every 60
      seconds until the condition ceases.

              

      

      
        	
                 
      

              	
                3.2.2.10.

              	
                When
      the Cancel button is actuated for five (5) seconds to initiate a 911 call,
      a verbal message of “Press Care button to call 911 emergency services”
      shall be repeated two (2) times or the message shall stop when the Cancel
      button is actuated

              

      

      
        	
                 
      

              	
                3.2.3.

              	
                Vibration
      mode messages

              

      

      
        	
                 
      

              	
                3.2.3.1.

              	
                A
      vibration “message” shall be initiated upon the following
      conditions:  Fall Detection, an incoming call, low battery
      power, a message is waiting on the companion device, and the wrist device
      is out of range of the companion
device

              

      

      
        	
                 
      

              	
                3.2.3.2.

              	
                The
      level of vibration will be a minimum magnitude of TBD and a frequency of
      TBD to be measured on the rear surface of the wrist
  device

              

      

    

    
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 35
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    
       

      
        	
                 
      

              	
                3.2.3.3.

              	
                The
      vibration “message” shall consist of a one (1) second duration activation
      followed by a one (1) second deactivation of the vibration
      generator.  The “message” cycle will repeat on/off in this
      fashion per the following
requirements

              

      

      
        	
                 
      

              	
                3.2.3.3.1.

              	
                The
      vibration “message” for Fall Detection shall cease when the Care Center
      call is connected or the “Cancel” button
  actuated

              

      

      
        	
                 
      

              	
                3.2.3.3.2.

              	
                The
      vibration “message” for “incoming call” shall cease when the Care Center
      call is connected

              

      

      
        	
                 
      

              	
                3.2.3.3.3.

              	
                The
      vibration “message” for “low battery power” shall cycle three (3) times
      then rest for 60 seconds and shall continue to cycle in this manner until
      the battery module is removed (for recharging) or the wrist device is
      placed into the base station for
recharging

              

      

      
        	
                 
      

              	
                3.2.3.3.4.

              	
                The
      vibration “message” to indicate that a message is waiting on the companion
      device shall cycle two (2) times then rest for three (3) minutes and shall
      continue to cycle in this manner until the message is acknowledged on the
      companion device

              

      

      
        	
                 
      

              	
                3.2.3.3.5.

              	
                The
      vibration “message” to indicate that the wrist device is out of range
      shall cycle three (3) times then rest for 60 seconds and shall continue to
      cycle in this manner until the condition
ceases

              

      

      
        	
                 
      

              	
                3.2.4.

              	
                Three
      (3) light emitting diodes (LEDs) will be provided to indicate device
      status

              

      

      
        	
                 
      

              	
                3.2.4.1.

              	
                Green
      blinking will indicate that the wrist device is powered “on.” The LED will
      cycle with a frequency of one (1) second “on”, five (5) seconds
      “off”

              

      

      
        	
                 
      

              	
                3.2.4.2.

              	
                Green
      blinking will indicate that the device is properly positioned in the base
      station and is charging.  The LED will cycle with a frequency of
      one (1) second “on,” one (1) second
“off”

              

      

      
        	
                 
      

              	
                3.2.4.3.

              	
                Green
      continuous will indicate that the device is fully
  charged

              

      

      
        	
                 
      

              	
                3.2.4.4.

              	
                Red
      blinking will indicate that the device has “no signal” and is not
      communicating with the companion device.  The LED will cycle
      with a frequency of one (1) second “on”, two (2) seconds “off” and will
      cycle in this mode until a connection is
  restored

              

      

      
        	
                 
      

              	
                3.2.4.5.

              	
                Red
      continuous will indicate a “low battery condition” and signal an imminent
      need for charging or battery
replacement

              

      

      
        	
                 
      

              	
                3.2.4.6.

              	
                Red
      and yellow blinking together will indicate that a fall has been
      detected.  The red and yellow LEDs shall oscillate opposite each
      other with a frequency of one (1) second “on”, one (1) second “off” until
      the Care Center call has been received or the “Cancel” button
      actuated

              

      

      
        	
                 
      

              	
                3.2.4.7.

              	
                Yellow
      blinking will indicate that a message has been sent by the Care Center and
      received by the companion device.  The LED will cycle with a
      frequency of one (1) second “on”, five (5) seconds “off” until the message
      has been acknowledged on the companion
device

              

      

      
        	
                 
      

              	
                3.2.5.

              	
                Upon
      insertion of the wrist device into the docking station or travel charger
      and proper connection with the charging system, a ”beep” will be issued by
      the wrist device

              

      

      

      
        	
                4.0

              	
                Companion
      Device

              

      

       

      
        	
                 
      

              	
                4.1.

              	
                Physical
      Characteristics

              

      

    

    
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 36
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

     

    
      
        	
                 
      

              	
                4.1.1.

              	
                The
      companion device will be of a size, shape and weight suitable for an adult
      to wear in a holster and to place into the “cradle” of a base
      station

              

      

      
        	
                 
      

              	
                4.1.1.1.

              	
                Dimensions
      shall be approximately the same as the GT300
  device

              

      

      
        	
                 
      

              	
                4.1.1.2.

              	
                The
      shape of the device will be similar to the GT300
  device

              

      

      
        	
                 
      

              	
                4.1.1.3.

              	
                Weight
      shall not exceed:  TBD

              

      

      
        	
                 
      

              	
                4.1.2.

              	
                The
      companion device will be supplied with a
holster

              

      

      
        	
                 
      

              	
                4.1.2.1.

              	
                The
      holster will have a clip for attaching to a belt or purse
      strap

              

      

      
        	
                 
      

              	
                4.1.3.

              	
                Material
      selection for the device case and
holster

              

      

      
        	
                 
      

              	
                4.1.3.1.

              	
                The
      case and holster shall be made of materials that are resistant to
      perspiration  and do not encourage the growth of
      bacteria

              

      

      
        	
                 
      

              	
                4.1.3.2.

              	
                The
      case and decoration or graphics shall be made of materials that are
      cleanable and water resistant

              

      

      
        	
                 
      

              	
                4.1.3.3.

              	
                The
      case and decoration or graphics shall be made of materials that are
      resistant to scratches and abrasion

              

      

      
        	
                 
      

              	
                4.1.3.4.

              	
                The
      case  and decoration or graphics shall be made of materials that
      are colorfast and resistant to the aging effects from exposure to UV or IR
      radiation

              

      

      
        	
                 
      

              	
                4.1.3.5.

              	
                The
      case, holster, and any decoration or fittings shall be made of materials
      that do not oxidize

              

      

      
        	
                 
      

              	
                4.1.4.

              	
                Industrial
      design of the companion device

              

      

      
        	
                 
      

              	
                4.1.4.1.

              	
                The
      design effort is underway and will involve several iterations and
      opportunities for review and comment.  One or more formal or
      informal focus groups with elder adults may be held to solicit feedback on
      the design and user interface

              

      

      
        	
                 
      

              	
                4.1.4.2.

              	
                Since
      the companion device will be built upon the GT300 layout, button location
      and other components for the companion device will be located in the same
      approximate locations as on the
GT300

              

      

      
        	
                 
      

              	
                4.1.4.3.

              	
                Graphics,
      decoration, and labeling will be identified as the industrial design for
      the companion device is developed

              

      

      
        	
                 
      

              	
                4.1.5.

              	
                Firmware
      updates

              

      

      
        	
                 
      

              	
                4.1.5.1.

              	
                The
      companion device will include a mini-USB connector to allow factory
      programming and firmware updates in the
field

              

      

      
        	
                 
      

              	
                4.1.5.2.

              	
                An
      attached  cover over the mini-USB connector port on the
      companion device is suggested to prevent accumulation of
      debris

              

      

      
        	
                 
      

              	
                4.1.5.3.

              	
                The
      mini-USB connector will not be used in the base
      station  (docking station) to recharge the device
      battery

              

      

      
        	
                 
      

              	
                4.1.6.

              	
                Location
      signal to Care Center

              

      

      
        	
                 
      

              	
                4.1.6.1.

              	
                When
      placed into the base station (docking station), the companion device will
      sense that recharging has been initiated and will send a signal to the
      Care Center.  (The signal will indicate that the companion
      device is in a known location at the user’s address which will be on file
      in the Care Center)

              

      

      
        	
                 
      

              	
                4.1.7.

              	
                Ingress
      Protection Standard

              

      

      
        	
                 
      

              	
                4.1.7.1.

              	
                The
      companion device will not be built to an IPXX
  standard

              

      

      
        	
                 
      

              	
                4.2.

              	
                User
      interface (functions and alarms) for the companion
  device

              

      

      
        	
                 
      

              	
                4.2.1.

              	
                Buttons
      and switches

              

      
 
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 37
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    

       

      
        	
                 
      

              	
                4.2.1.1.

              	
                Power
      button:  A single actuation of one (1) second minimum shall
      activate power “on.”  A single actuation of three (3) seconds
      minimum shall deactivate the device (power
  “off”)

              

      

      
        	
                 
      

              	
                4.2.1.2.

              	
                Volume
      buttons:  Each actuation of the Volume “up” or Volume “down”
      buttons will increase or decrease the volume level of the speaker by 4dBa
      (TBD)

              

      

      
        	
                 
      

              	
                4.2.1.3.

              	
                The
      Volume buttons will provide a progression of increasing or decreasing the
      volume level with a minimum of 5 steps
  (actuations)

              

      

      
        	
                 
      

              	
                4.2.1.4.

              	
                Care
      button:  A single actuation will initiate a call sequence to the
      Care Center after a minimum actuation of two (2)
  seconds

              

      

      
        	
                 
      

              	
                4.2.1.4.1.

              	
                The
      minimum force required to actuate the Care button shall be TBD when
      measured at the center of the
button.

              

      

      
        	
                 
      

              	
                4.2.1.4.2.

              	
                The
      color of the Care button shall be TBD (color molded in, not
      painted)

              

      

      
        	
                 
      

              	
                4.2.1.4.3.

              	
                The
      size of the Care button shall be a minimum of TBD sq.
  cm

              

      

      
        	
                 
      

              	
                4.2.1.4.4.

              	
                The
      Care button shall have two raised dots molded onto its face to simulate
      the letter “C” in Braille

              

      

      
        	
                 
      

              	
                4.2.1.5.

              	
                Cancel
      button:  A single actuation of a minimum of one (1) second shall
      cancel a call, terminate the Fall Detection notification, or acknowledge
      and delete a message sent by the Care
Center

              

      

      
        	
                 
      

              	
                4.2.1.5.1.

              	
                The
      Cancel button shall be smaller in size than the Care button and a minimum
      of TBD sq. cm

              

      

      
        	
                 
      

              	
                4.2.1.5.2.

              	
                The
      color of the Cancel button shall be TBD (color molded in, not
      painted)

              

      

      
        	
                 
      

              	
                4.2.1.5.3.

              	
                The
      Cancel button will require a minimum force of TBD for actuation, to be
      measured at the center of the
button

              

      

      
        	
                 
      

              	
                4.2.1.6.

              	
                911
      emergency dialing

              

      

      
        	
                 
      

              	
                4.2.1.6.1.

              	
                Actuation
      of the Cancel button for five (5) seconds shall initiate a call to 911
      emergency services but only after the Care button has been actuated in
      sequence

              

      

      
        	
                 
      

              	
                4.2.1.7.

              	
                A
      tactile feedback from all buttons shall be
  provided

              

      

      
        	
                 
      

              	
                4.2.2.

              	
                Audible
      verbal messages

              

      

      
        	
                 
      

              	
                4.2.2.1.

              	
                All
      messages to be recorded in American English with a female
      voice

              

      

      
        	
                 
      

              	
                4.2.2.2.

              	
                The
      companion device shall be capable of presenting an audible verbal message
      at a minimum of 80dBa as measured at a distance of 1
  meter.

              

      

      
        	
                 
      

              	
                4.2.2.3.

              	
                Initial
      actuation of the Power button (4.2.1.1) initiates a spoken message
      indicating the device is powered “on”:  “Welcome to ActiveOne
      Plus”

              

      

      
        	
                 
      

              	
                4.2.2.4.

              	
                Secondary
      actuation of the Power button (4.2.1.1) initiates a spoken message
      indicating the device is powering “off” and shutting
      down:  “ActiveOne Plus is shutting
      down.  Goodbye”

              

      

      
        	
                 
      

              	
                4.2.2.5.

              	
                Each
      actuation of the Volume “up” button will initiate a verbal message of
      “louder” spoken at the volume corresponding to the new level
      selected

              

      

      
        	
                 
      

              	
                4.2.2.6.

              	
                Each
      actuation of the Volume “down” button will initiate a verbal message of
      “softer” spoken at the volume corresponding to the new level
      selected

              

      

      
        	
                 
      

              	
                4.2.2.7.

              	
                When
      a Fall Detection condition is identified, a verbal message of “fall
      detected” will be repeated during the ten (10) second delay before a call
      is placed to the Care Center

              

      

      
        	
                 
      

              	
                4.2.2.8.

              	
                Upon
      actuation of the Care button, a verbal message of “Calling Care Center”
      will repeat until the call is connected to the Care
  Center

              

      

    

    
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 38
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

     

    
      
        	
                 
      

              	
                4.2.2.9.

              	
                Upon
      actuation of the Cancel button, a verbal message of “call cancelled” shall
      be spoken two (2) times to acknowledge the
  command

              

      

      
        	
                 
      

              	
                4.2.2.10.

              	
                When
      the Cancel button is actuated for five (5) seconds to initiate a 911 call,
      a verbal message of “Press Care button to call 911 emergency services”
      shall be repeated two (2) times or the message shall stop when the Cancel
      button is actuated

              

      

      
        	
                 
      

              	
                4.2.3.

              	
                Upon
      insertion of the companion device into the docking station or travel
      charger and proper connection with the charging system, a ”beep” will be
      issued by the companion device

              

      

      
        	
                 
      

              	
                4.2.4.

              	
                Vibration
      mode messages

              

      

      
        	
                 
      

              	
                4.2.4.1.

              	
                A
      vibration “message” shall be initiated in the companion device upon the
      following conditions if the companion device has been removed from the
      base station:  Fall Detection, an incoming call, low battery
      power, “power down,” and the wrist device is out of range of the companion
      device

              

      

      
        	
                 
      

              	
                4.2.4.2.

              	
                The
      level of vibration will be a minimum magnitude of TBD and a frequency of
      TBD to be measured on the rear surface of the companion
    device

              

      

      
        	
                 
      

              	
                4.2.4.3.

              	
                The
      vibration “message” frequency and logic shall match the cycles defined in
      Section 3.2.3.3 for the wrist
device

              

      

      
        	
                 
      

              	
                4.2.5.

              	
                Three
      (3) light emitting diodes (LEDs) will be provided to indicate device
      status

              

      

      
        	
                 
      

              	
                4.2.5.1.

              	
                Green
      blinking will indicate that the companion device is powered
      “on.”  The LED will cycle with a frequency of one (1) second
      “on”, five (5) seconds “off”

              

      

      
        	
                 
      

              	
                4.2.5.2.

              	
                Green
      blinking  will indicate that the companion device is charging
      and is properly positioned in the base station.  The LED will
      cycle with a frequency of one (1) second “on,” one (1) second
      “off.”

              

      

      
        	
                 
      

              	
                4.2.5.3.

              	
                Green
      continuous will indicate that the companion device is fully
      charged

              

      

      
        	
                 
      

              	
                4.2.5.4.

              	
                Red
      blinking will indicate that the device has “no signal” and is not
      communicating with the wrist device.  The LED will cycle with a
      frequency of one (1) second “on”, two (2) seconds “off” and will cycle in
      this mode until a connection is
restored

              

      

      
        	
                 
      

              	
                4.2.5.5.

              	
                Red
      continuous will indicate a “low battery condition” and signal an imminent
      need for charging

              

      

      
        	
                 
      

              	
                4.2.5.6.

              	
                Red
      and yellow blinking together will indicate that a fall has been
      detected.  The red and yellow LEDs shall oscillate opposite each
      other with a frequency of one (1) second “on”, one (1) second “off” until
      the Care Center call has been received or the “Cancel” button
      actuated

              

      

      
        	
                 
      

              	
                4.2.5.7.

              	
                Yellow
      blinking will indicate the presence of an incoming call.  The
      LED will cycle with a frequency of one (1) second “on”, one (1) second
      “off” until the call is received

              

      

      
        	
                 
      

              	
                4.2.5.8.

              	
                Yellow
      blinking will indicate that a message has been sent by the Care Center and
      received by the companion device (message waiting).  The LED
      will cycle with a frequency of one (1) second “on”, five (5) seconds “off”
      until the message has been acknowledged on the companion
      device

              

      

      
        	
                 
      

              	
                4.2.6.

              	
                Organic
      LED (OLED) display screen

              

      

      
        	
                 
      

              	
                4.2.6.1.

              	
                The
      OLED screen will be capable of providing a brightness level of
      TBD

              

      

      
        	
                 
      

              	
                4.2.6.2.

              	
                The
      OLED screen shall provide a view of a minimum of TBD characters at a font
      size of TBD mm

              

      

      
        	
                 
      

              	
                4.2.6.3.

              	
                The
      resolution (dot matrix) of the OLED screen shall be
  TBD

              

      

    

    
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 39
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

     

    
      
        	
                 
      

              	
                4.2.6.4.

              	
                Screen
      indicators (icons) will display the status of the following features on
      the “idle” portion of the OLED screen:  (these to be discussed
      and confirmed with team)

              

      

      
        	
                 
      

              	
                4.2.6.4.1.

              	
                GSM
      signal strength

              

      

      
        	
                 
      

              	
                4.2.6.4.2.

              	
                GPS
      signal strength

              

      

      
        	
                 
      

              	
                4.2.6.4.3.

              	
                Battery
      status

              

      

      
        	
                 
      

              	
                4.2.6.4.4.

              	
                Bluetooth
      connection status

              

      

      
        	
                 
      

              	
                4.2.6.4.5.

              	
                Date/time

              

      

      
        	
                 
      

              	
                4.2.6.4.6.

              	
                Network
      operator name

              

      

      
        	
                 
      

              	
                4.2.6.5.

              	
                The
      following screen messages will be displayed on the “active” portion of the
      LCD screen:

              

      

      
        	
                 
      

              	
                4.2.6.5.1.

              	
                If
      a fall is detected, the display shall indicate “FALL DETECTED” until the
      Care Center is connected or the call is
  cancelled

              

      

      
        	
                 
      

              	
                4.2.6.5.2.

              	
                When
      dialing the Care Center, the display shall indicate “CALLING CARE
      CENTER”

              

      

      
        	
                 
      

              	
                4.2.6.5.3.

              	
                Upon
      connecting with the Care Center, the display shall indicate “CARE
      CENTER”

              

      

      
        	
                 
      

              	
                4.2.6.5.4.

              	
                Upon
      actuation of the “cancel” button, the display will indicate “CALL
      CANCELLED”

              

      

      
        	
                 
      

              	
                4.2.6.5.5.

              	
                When
      dialing 911, the display shall indicate “CALLING
  911”

              

      

      
        	
                 
      

              	
                4.2.6.5.6.

              	
                Upon
      connecting with 911 emergency services, the display shall indicate “911
      EMERGENCY”

              

      

      
        	
                 
      

              	
                4.2.6.5.7.

              	
                Upon
      actuating the Power “on” button to commence start-up, the display shall
      indicate “POWER ON”  for two (2) seconds followed by the Active
      Care logo until the standard operating mode is achieved (approximately
      five (5) seconds)

              

      

      
        	
                 
      

              	
                4.2.6.5.8.

              	
                Upon
      actuating the Power “off” button to shut down the device, the display
      shall indicate “GOODBYE” for approximately five (5)
  seconds

              

      

      
        	
                 
      

              	
                4.2.6.5.9.

              	
                Upon
      actuating the volume “up” or “down” buttons, the display shall show the
      graph figure currently used in the GT 300 device to indicate the volume
      setting

              

      

      
        	
                 
      

              	
                4.2.6.5.10.

              	
                The
      text of a message sent by the Care Center will be shown on the
      display

              

      

      

      
        	
                 
      

              	
                4.3.

              	
                Docking
      station or base station

              

      

      
        	
                 
      

              	
                4.3.1.

              	
                Physical
      characteristics

              

      

      
        	
                 
      

              	
                4.3.2.

              	
                Design
      of the base station

              

      

      
        	
                 
      

              	
                4.3.2.1.

              	
                The
      base station shall hold both the wrist device and the companion device
      securely during charging

              

      

      
        	
                 
      

              	
                4.3.2.2.

              	
                The
      base station shall charge one, or both devices simultaneously and
      automatically once the device(s) are placed into the
    station

              

      

      
        	
                 
      

              	
                4.3.2.3.

              	
                The
      two (2) charging positions on the base station shall be differentiated in
      design to accept placement of each device only in its appropriate charging
      location

              

      

      
        	
                 
      

              	
                4.3.2.4.

              	
                The
      two (2) charging positions shall each provide at least a  two
      (2) point contact recharging arrangement (similar to a cordless
      phone)

              

      

      
        	
                 
      

              	
                4.3.2.5.

              	
                The
      base station shall require a single cord for connection to a wall outlet
      (type used in US and Canada)

              

      

      
        	
                 
      

              	
                4.3.3.

              	
                Material
      selection for base
station

              

      
 
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 40
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

     

    
       

      
        	
                 
      

              	
                4.3.3.1.

              	
                The
      case and decoration or graphics shall be made of materials that are
      cleanable and water resistant

              

      

      
        	
                 
      

              	
                4.3.3.2.

              	
                The
      case and decoration or graphics shall be made of materials that are
      resistant to scratches and abrasion

              

      

      
        	
                 
      

              	
                4.3.3.3.

              	
                The
      case  and decoration or graphics shall be made of materials that
      are colorfast and resistant to the aging effects from exposure to UV or IR
      radiation

              

      

      
        	
                 
      

              	
                4.3.3.4.

              	
                The
      base station and any decoration or fittings shall be made of materials
      that do not oxidize

              

      

      
        	
                 
      

              	
                4.3.3.5.

              	
                The
      bottom of the base shall have pads to resist slipping and prevent
      scratching of furniture

              

      

      
        	
                 
      

              	
                4.3.4.

              	
                Industrial
      design of the base station

              

      

      
        	
                 
      

              	
                4.3.4.1.

              	
                The
      design effort is underway and will involve several iterations and
      opportunities for review and comment.  One or more formal or
      informal focus groups with elder adults may be held to solicit feedback on
      the design and user interface

              

      

      
        	
                 
      

              	
                4.3.4.2.

              	
                Graphics,
      decoration, and labeling will be identified as the industrial design for
      the companion device is developed

              

      

      

      
        	
                5.0

              	
                Travel
      charger for wrist device
(TBD)

              

      

    

    

    

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 41
of 45

          

        

         

      

      
         

        
          

        

      

      
         

        
          

          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    

    APPENDIX
B - GPS PRIMER

     

    The
Global Positioning System (GPS) is a satellite-based navigation system made up
of a network of 24 satellites placed into orbit by the U.S. Department of
Defense. GPS was originally intended for military applications, but in the
1980s, the government made the system available for civilian use. GPS works in
any weather conditions, anywhere in the world, 24 hours a day. There are no
subscription fees or setup charges to use GPS.

     

    How
it works...

     

    GPS
satellites circle the earth twice a day in a very precise orbit and transmit
signal information to earth. GPS receivers take this information and use
triangulation to calculate the user's exact location. Essentially, the GPS
receiver compares the time a signal was transmitted by a satellite with the time
it was received. The time difference tells the GPS receiver how far away the
satellite is. Now, with distance measurements from a few more satellites, the
receiver can determine the user's position and display it on the unit's
electronic map.

     

    A GPS
receiver must be locked on to the signal of at least three satellites to
calculate a 2D position (latitude and longitude) and track movement. With four
or more satellites in view, the receiver can determine the user's 3D position
(latitude, longitude and altitude). Once the user's position has been
determined, the GPS unit can calculate other information, such as speed,
bearing, track, trip distance, distance to destination, sunrise and sunset time
and more.

     

    How
accurate is GPS?

     

    Today's
GPS receivers are extremely accurate, thanks to their parallel multi-channel
design. Twelve parallel channel receivers are quick to lock onto satellites when
first turned on and they maintain strong locks, even in dense foliage or urban
settings with tall buildings. Certain atmospheric factors and other sources of
error can affect the accuracy of GPS receivers. GPS receivers are accurate to
within 15 meters (50 feet) on average.

     

    Newer GPS
receivers with WAAS (Wide Area Augmentation System) capability can improve
accuracy to less than three meters on average. No additional equipment or fees
are required to take advantage of WAAS.

     

    Users can
also get better accuracy with Differential GPS (DGPS), which corrects GPS
signals to within an average of three to five meters. The U.S. Coast Guard
operates the most common DGPS correction service. This system consists of a
network of towers that receive GPS signals and transmit a corrected signal by
beacon transmitters. In order to get the corrected signal, users must have a
differential beacon receiver and beacon antenna in addition to their
GPS.

     
 

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 42
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          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

     

    
      	
              The
      GPS satellite system

               

              The
      24 satellites that make up the GPS space segment are orbiting the earth
      about 12,000 miles above us. They are constantly moving, making two
      complete orbits in less than 24 hours. These satellites are traveling at
      speeds of roughly 7,000 miles an hour.

               

              GPS
      satellites are powered by solar energy. They have backup batteries onboard
      to keep them running in the event of a solar eclipse, when there's no
      solar power. Small rocket boosters on each satellite keep them flying in
      the correct path.

               

              Here
      are some other interesting facts about the GPS satellites (also called
      NAVSTAR, the official U.S. Department of Defense name for
      GPS):

            	 	
               

               

            

    

     

    
      	
              ·  

            	
              The
      first GPS satellite was launched in
1978.

            

    

    
      	
              ·  

            	
              A
      full constellation of 24 satellites was achieved in
  1994.

            

    

    
      	
              ·  

            	
              Each
      satellite is built to last about 10 years. Replacements are constantly
      being built and launched into
orbit.

            

    

    
      	
              ·  

            	
              A
      GPS satellite weighs approximately 2,000 pounds and is about 17 feet
      across with the solar panels
extended.

            

    

    
      	
              ·  

            	
              Transmitter
      power is only 50 watts or less.

            

    

     

    What's
the signal?

    GPS
satellites transmit two low power radio signals, designated L1 and L2. Civilian
GPS uses the L1 frequency of 1575.42 MHz in the UHF band. The signals travel by
line of sight, meaning they will pass through clouds, glass and plastic but will
not go through most solid objects such as buildings and mountains.

    

    A GPS
signal contains three different bits of information — a pseudorandom code,
ephemeris data and almanac data. The pseudorandom code is simply an I.D. code
that identifies which satellite is transmitting information.

    

    Ephemeris
data, which is constantly transmitted by each satellite, contains important
information about the status of the satellite (healthy or unhealthy), current
date and time. This part of the signal is essential for determining a
position.

    

    The
almanac data tells the GPS receiver where each GPS satellite should be at any
time throughout the day. Each satellite transmits almanac data showing the
orbital information for that satellite and for every other satellite in the
system.

    

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 43
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          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    

    Enhanced
GPS

    The term
“enhanced GPS” is used loosely throughout the location services industry. There
are several competing technologies on the market which are provided to enhance
the performance of a GPS receiver.  Some examples include Oncore,
SnapTrak, NEC, U-Locate, TrimTrac, etc.  Most of these GPS-enhancing
technologies are network-assisted or network-based using GSM, CDMA, or other
terrestrial networks.

    

    Overview
Of Assisted GPS

    Assisted-GPS
is a method of improving GPS performance. Two main benefits are
seen:

    Faster
Time to First Fix (TTFF)

    Acquisition
in weak signal environments

    

    These
improvements in performance come with one penalty – the requirement for some
type of cellular network to transmit the assistance data, and backend server
technology to generate assistance data. To gain an understanding of the
difference in performance between Assisted and Autonomous GPS, please view the
performance numbers in the next section.

    

    Overview
of MS-Based Assisted GPS

    MS
(Mobile Station) Based Assisted GPS is a standard mode of GPS operation,
tailored for fast acquisition and operation in weak signal environments.
Position calculation occurs in the mobile unit, and does not require assistance
beyond the initial Assistance packet, which is valid for up to two hours. This
makes it ideal for application that need to generate a position regularly such
as mapping LBS (Location Based Services) without loading the cellular
network.

    

    Overview
of MS-Assisted Assisted GPS

    MS
(Mobile Station) Assisted A-GPS is a standard mode of GPS operation, suited to
infrequent position fixes in weak signal environments. Position calculation
occurs in the Cellular Network, completed in the PDE (Position Determining
Entity). This type of A-GPS is suited to E911 applications where only the
network side needs to know the position, rather than the mobile being ‘position
aware’.

    

    Overview
of Autonomous GPS

    Autonomous
GPS, as the name suggests, requires no assistance data and is capable of
outputting Position, Velocity and Time (PVT) autonomously. The limitation of
this type of GPS is its inability to calculate initial position in weak signal
environments. In order for the GPS to calculate its position, Ephemeris data is
required locally to calculate precise satellite positions. The Ephemeris, and
other satellite parameter data, is transmitted as a background serial stream as
50 bits per second. This data cannot be decoded initially at signal levels under
–142dBm, and hence the limitation of the first autonomous fix to –142dBm. Once a
position has been calculated, implying Ephemeris data is available locally,
autonomous operation can continue in weal signal environments until the
background decoded data has timed out, typically 2 hours max.

    

    
      
        
          Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

          Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

          
            Page 44
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          Quectel Wireless Solutions
Ltd.

          Suite
801. Building E, 1618 Yishan Road, Shanghai PRC

          Tel: 86
21 51082965 Fax 86 21 64058005 Zip: 201103

        

      

    

    Network
Based Location Service

    There is
also a terrestrial based set of technologies that determine a cellular users
position using cell data and time of arrival measurements.  These
services are mainly restricted to urban areas where the cell tower density is at
its greatest and will only be available if the carrier supports it.

    

    Sources
of GPS signal errors

    Factors
that can degrade the GPS signal and thus affect accuracy include the
following:

     

    
      	
              ·  

            	
              Ionosphere and troposphere
      delays — The satellite signal slows as it passes through the
      atmosphere. The GPS system uses a built-in model that calculates an
      average amount of delay to partially correct for this type of
      error.

            

    

    
      	
              ·  

            	
              Signal multipath — This
      occurs when the GPS signal is reflected off objects such as tall buildings
      or large rock surfaces before it reaches the receiver. This increases the
      travel time of the signal, thereby causing
  errors.

            

    

    
      	
              ·  

            	
              Receiver clock errors —
      A receiver's built-in clock is not as accurate as the atomic clocks
      onboard the GPS satellites. Therefore, it may have very slight timing
      errors.

            

    

    
      	
              ·  

            	
              Orbital errors — Also
      known as ephemeris errors, these are inaccuracies of the satellite's
      reported location.

            

    

    
      	
              ·  

            	
              Number of satellites
      visible — The more satellites a GPS receiver can "see," the better
      the accuracy. Buildings, terrain, electronic interference, or sometimes
      even dense foliage can block signal reception, causing position errors or
      possibly no position reading at all. GPS units typically will not work
      indoors, underwater or underground.

            

    

    
      	
              ·  

            	
              Satellite
      geometry/shading — This refers to the relative position of the
      satellites at any given time. Ideal satellite geometry exists when the
      satellites are located at wide angles relative to each other. Poor
      geometry results when the satellites are located in a line or in a tight
      grouping.

            

    

    
      	
              ·  

            	
              Intentional degradation of the
      satellite signal — Selective Availability (SA) is an intentional
      degradation of the signal once imposed by the U.S. Department of Defense.
      SA was intended to prevent military adversaries from using the highly
      accurate GPS signals. The government turned off SA in May 2000, which
      significantly improved the accuracy of civilian GPS
    receivers.

            

 

     

    
      
        Quectel
Wireless Solutions Ltd. Suite 801, Building E, 1618 Yishan Road, Shanghai PRC
201103

        Tel: 86
21 51082965 Fax 86 21 64058005 Web www.quectel.com

        
          Page 45
of 45

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