MARYLAND INDUSTRIAL PARTNERSHIPS (MIPS)

PROJECT APPLICATION

UNIVERSITY OF MARYLAND-ENGINEERING RESEARCH CENTER

Proposals due at the MIPS Office

on May 1, 2003

DO NOT SUBMIT THIS PAGE WITH PROPOSAL.

THANK YOU

5/2003

Please DO NOT USE STAPLES – Fasten Proposals with small binder clips

Application Due May 1, 2003

MARYLAND INDUSTRIAL PARTNERSHIPS (MIPS)University Of Maryland--Engineering Research Center Application Date:May 01, 2003

Revision Date:

Project Title: (If this title contains confidential information, please give an alternate title)Indoor Location and Emergency Alerting Technology Company Name:TRX-SYSTEMS, Inc.County:Prince Georges

(location of company submitting proposal – If Baltimore City,type Baltimore City)

Project Phase: 1 of 2 University Campus: College Park

Size of Company (using MIPS standards): Large Medium Small Start-up

Note : $ figures below should be the same as on page 14. Percentages are based on Company cash or total company match as percent of university budget.

University Budget (from page 14, item 11(a))....................................................................$70, 000

MIPS Contribution (from page 14, item 11 (e))..................................................................$ 63,000

Company Cash (from page 14, item 11(f))...............................................$ 7,000 (10%)

Company Equipment Gift (from page 14, item 11(g))...............................$ 0

Total Company Contribution to Univ.(from page 14, item 11(h))........................................$126,512

Total Company Match (from page 14, item 11(j))..............................................................$ 7,000 (50%)

Authorized University Signature Signature:

Typed Name :

Title :

Date: / /

(to be filled in by MIPS)

Short Title:

5/2003

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x

1. Participants:

(a) Company:TRX-Systems, Inc.Company Address (including city/state/zip):10001 Derekwood Lane, suite 204; Lanham; MD 20706Telephone:(202)-415-6677

Website:http://www.trx-systems.com

(b) Project Manager: (Company) Dr. Gilmer Blankenship

Telephone:(202)-415-6677

Title:President

Fax:(301) 577 0831

E-mail:gilmer@technosci.com

(c) Authorized Representative:(Company) Dr. Gilmer Blankenship

Title:President

Signature: Telephone: (202)-415-6677

E-mail: gilmer@technosci.com

Fax:(301) 577 0831

(d) University PI:Dr. Neil Goldsman

Title: Professor

PI’s Signature: Telephone: (301) 405 3648

Fax: (301) 314 9001

Department: Electrical and Computer Engineering

Campus:

Full Mailing Address: (room #, city, state, zip)AV Williams Building, University of Maryland College Park, MD 20742

E-mail:neil@eng.umd.edu

2. Company Background:

(a) Number of employees in: Maryland 1 , worldwide 1 .

(b) Nature of Company’s business in Maryland.TRX is a startup company created to address the market for indoor location, tracking, and alerting technology.

(c) Nature of Company’s business outside of Maryland, if any, other than sales.None yet

(d) Is Company woman-owned? Yes No x

(e) Is Company minority-owned? Yes No x

(f) Are you a subsidiary of another firm? Yes No x

If “yes”, name and address of parent firm:N/ANumber of employees of parent firm:N/A(g) If a start-up company, submit a Certificate of Standing from the State of Maryland Department of

Assessments and Taxation.

NOTE: This application should be written in layperson’s terms, except for the technical proposal (Section 6).

3. Project Summary:

(a) Describe the overall purpose of the MIPS project.

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The objective of the project is the design and development of a technology for the location of firemen and other public service personnel inside buildings. The system will be composed of a body worn detector that provides information on the individual’s status and location, and a capability to transmit an alert to a command station outside the building, together with a receiver that processes the signals from the transmitter and displays them for management and safety assurance of personnel.

Variations of the system will be developed for police and EMS personnel. The system addresses a key problem in assuring the safety of public service personnel. The fire service is one of the most hazardous jobs in the country. Each year approximately 100 firemen are killed in the line of duty. The Fire Safety System will make a major contribution to the reduction of this toll.

It will be the first of a series of products from TRX that use location and sensing technology to promote safety and performance. See the attached business plan.

(b) Describe the expected outcome of this Phase. If there is more detail in the technical proposal, please reference page and paragraph.

The end result of Phase I will be a prototype of the Fire Safety System that provides location of individuals inside buildings and complex structures (tunnels, mines, etc.) together with an understanding of the propagation of electromagnetic (EM) waves inside structures as it applies to the computation of precise location. The attached technical proposal describes the specialized VLSI chips that will be developed to enable the application.

(c) Summarize Phase 1 research of this project.

In Phase I, the validity of the approach will be demonstrated in prototype hardware and software by using two problems: (1) location of personnel in complex buildings and (2) an evaluation of the distribution of EM signals in a structure. The first problem addresses a key concern and will demonstrate the feasibility and effectiveness of our approach. The second will provide an assessment of the limitations of the determination of location based on wave propagation and timing estimates. More details in the technical proposal work plan.

(d) If there are two phases, summarize Phase 2 research.

Phase II will complete the development of the hardware and software with additional capabilities for other applications. It is to be emphasized that the entire effort will be applicable to a wide range of public safety end users, not just firemen. The open framework of the design makes the system applicable to other problem areas including location of health care personnel in a hospital, prisoners and guards in a prison, etc. More details in the technical proposal work plan. The end result of Phase II will be a commercially viable system for the fire safety market and related public safety services.

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For Phase 2 projects only.

(e) Briefly summarize objectives, accomplishments, and status of project Phase 1. Compare accomplishments with the objectives:

N/A

(f) List problems and/or failures to meet specific objectives during Phase 1. Give reasons.

N/A

(g) If any funds requested in this proposal are intended for work to correct problems listed in (e) above, explain

and give amount: $ . N/A

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4. Research Personnel Qualifications

Provide information on Principal Investigator and other key University and Company researchers. Attach a one or two-page c.v. of the P.I. (only), after page 16 of this application.

(a) Principal Investigator:

Name:Dr. Neil Goldsman

Title:Professor

Campus:College Park

Dept:Electrical and Computer Engineering

Degrees/Disciplines:

BA, ME, Ph.D (Cornell University)/ Electrical EngineeringExperience pertinent to project:Neil Goldsman has been involved in the teaching, research and development of electronics for over twenty years. He has over 100 publications in the overall area of microelectronics. He has developed a senior class, which teaches students how to design mixed signal VLSI chips (ENEE408D), and a graduate course on Radio Frequency Circuit Design (ENEE614). He has supervised the design and fabrication of numerous chips, and helped design and build many of the circuits that we plan to use for this project. Currently working on a project that integrate electromagnetism and VLSI circuit design. Other experience:Neil Goldsman has worked with major chip companies including Intel and LSI Logic.Neil Goldsman wrote the text for the junior level electronics design ENEE306, which has enrollment of approximately 200 students/year

(b) Other Key Researcher(s):

Name: O. Ramahi Title: Assistant Professor

Campus:College Park

Dept:

Degrees/Disciplines:Phd

Experience pertinent to project:Electromagnetic wave propagation

Other experience:

(c) Name: Dr. Gilmer Blankenship Title: President TRX-Systems

Campus: Dept:

Degrees/Disciplines: BS, MS, PhD (MIT) Electrical Engineering

Experience pertinent to project: In addition to his research on control, signal processing, and systems engineering, Dr. Blankenship directed a company that specializes in search and rescue based on satellite aided location technology. He directed the formation of a second company that provides services to the maritime community for ship location, tracking, systems and security monitoring.

Other experience: Dr. Blankenship has an excellent appreciation of the value and potential of location technology for a wide range of application areas.

(d) Name: Blake Robertson Title:

Campus: College Park

Dept:

Degrees/Disciplines:Undergraduate

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Experience pertinent to project:Computer hardware to software interfacing

Other experience:

(e) Name: Yun Bai Title:

Campus: College Park

Dept:

Degrees/Disciplines:Graduate Student

Experience pertinent to project:

VLSI Circuit Design and Electromagnetic Modeling

Other experience:

5. Commercialization/Economic Impact

For new projects, respond to 5(a) through 5(e) only. For Phase 2 projects, respond to 5(f) only.

(a) Commercialization Plans. What is the product or process you are planning to commercialize? Describe your strategy and time frame (following the completion of this project) for manufacturing the product, providing services or implementing the process. How will you finance this effort?

TRX-Systems, Inc. (TRX) in collaboration with other industry partners will commercialize the Fire Safety System. TRX was formed to take advantage of the emerging ubiquity of personal location technology. The FSS will be our first product.

We propose to test the Phase I prototype FSS with the Maryland Fire and Rescue Institute to get feedback and to determine design weaknesses for refinements in Phase II. We anticipate that the Institute will help (indirectly) in publicizing a successful the system through its network. This will give us credibility and allow us access to the fire service market place.

We shall also explore collaboration with an established provider of fire safety equipment. A preliminary discussion was held with Grade Industries.

TRX will fund the initial marketing efforts from internal funds. We plan a series of presentations and demonstrations at trade shows for public sector personnel. An angel investor will be sought to support the marketing effort. We plan to apply to the Small Business Innovative Research programs of the National Science Foundation and other agencies for further development funds. This will limit the need to provide large amounts of our company stock to outside investors.

(b) Market. What is the market for the product or process? By what means have you determined this? What will be your market share and why? Who will be your customers? If you are not in the market now, how are you going to get there? What key strategies will make your product or process introduction successful?

In a recent report,1 the Public Service Wireless Networking initiative (PSWN) gave a very precise statement of the problem addressed in this proposal. As pointed out in the PSWN Report, more than 1,000 “… firefighters have died in the line of duty over the past decade. One of the leading causes of firefighter death and injury is the inability of rescuers to locate and extract firefighters trapped in a structure or overcome by the progress of a fire. In 1999, six firefighters were killed in a large warehouse fire in Worcester, Massachusetts, subsequent to an internal structure collapse and a failed search and rescue effort. In calendar year 2000, five multiple fatality incidents resulted in the deaths of 10 firefighters. The tragic terrorist events of September 11, 2001, culminating in the loss of some 343 New York City firefighters at the World

1 www.pswn.gov/library/pdf/wfl.pdf6

Trade Center, only amplifies the need for technology solutions that enhance incident scene accountability and assist in the search and rescue of trapped or downed personnel.”

“Why is it America has the technology to track a whale across oceans around the world and pinpoint rocks to the centimeter on the surface of Mars, but no devices to accurately pinpoint the location of downed firefighters inside a simple two-story building?” [Letter from National Fire and Rescue Magazine to President Clinton]

The initial market will be the fire service departments in municipalities. The need for the system was crystallized by the terrible loss of life in the September 11 terrorism We are unaware of a comprehensive competitive technology that captures the features, advantages and benefits of the proposed system.

It is to be emphasized that as the functionality of the system grows it will find great number of users since it is applicable to a wide range of defense, public service, and other end users. We believe the price point for the final system will be between $400-600 per unit depending on volume. There is the potential for many thousands of end users. Assuming a conservative price of $500 and an initial market of 10,000 units, the market is $5 million.

(c) Competition. What are the competing products or processes? What is being used now? Who will be your competition? What is the uniqueness of your product or process?

We are unaware of a competitive technology that captures the features, advantages and benefits of the proposed Fire Safety System.

(d) Measurable Results. Forecast annual sales, new jobs created, jobs retained, cost reductions, etc. as a result of this project, starting 1 year after completion. Example: Year 1– 2 new jobs; year 2 – sales increase $900,000, 12 new jobs; Year 3 – additional sales $800,000, 11 new jobs… X years; etc.

Year 1 Year 2 Year 3 Year 4Sales $50,000 $200,000 $1,000,000 $2,500,000Price*Units $500*100 $500*400 $500*2,000 $500*5,000Jobs Added 0 1 5 10Jobs Retained 1 2 8 18

We anticipate that the initial sales after the Phase II development is over will be small, however given the potential for development we forecast conservatively that the sales will grow substantially in the coming years. The new jobs will be in the areas of development, marketing and support.

(e) Other factors pertinent to this project. Examples: importance of project, new opportunities, etc.

This will be the first product of our company, and it will establish our business. It is critical to our success.

(f) Review the commercialization/economic impact statements of your Phase I proposal and describe any changes or additions now envisioned and why. (Applies to Phase 2 applicants only)

N/A

6. Technical Proposal: A technical proposal is required. It is to consist of a narrative (not to exceed 5 pages), and a master schedule. The narrative should include:

Purpose of the total project (all phases) Results to be achieved by the total project For this proposed phase only, describe:

- technical approach- scope of work- anticipated results- risk factors- other pertinent information

(Insert your technical proposal immediately after this page 8. Pages of the Technical Proposal should be numbered 8-a, 8-b, 8-c, etc. The Master Schedule follows on page 9. )

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Fill out the master schedule form (page 9). A typical master schedule will consist of 4 to 10 schedule items. An example of a partial master schedule is as follows:

Schedule Item Month

# Description 1 2 3 4 5 6 7 8 9 10 11 12

1 Evaluate surface conditions of molded cases

2 Develop mathematical model of surface deterioration

TECHNICAL PROPOSAL

Indoor Positioning Systems

1. IntroductionThe advent of Global Positioning Systems (GPS) has revolutionized navigation. However, the GPS network does

not function inside human structures, i.e. office buildings, factories, etc. The reason is that GPS is uses radio waves to operate. However, radio waves, which are a form of electromagnetic radiation, do not propagate in very well inside a building. In fact, electromagnetic wave propagation becomes very complicated inside structures, with waves reflecting off walls and penetrating various construction materials differently. In this work we seek matching funding to help develop a series products for location determination that operates indoors. To achieve this we plan to combine the knowledge of three fields: Very Large Scale Integration (VLSI) Radio Frequency Electronics; Electromagnetic (EM) Theory; and Statistics. We also plan to implement two different approaches. One that is based on a new highly sensitive GPS receiver that Motorola Corporation plans to introduce; and one that uses a local positioning system that is being designed by the principal investigators and their co-workers. Both approaches will employ a unique combination of circuit design,

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electromagnetic theory and statistics. The products we plan to bring to market with the aid of MIPs funding we are seeking include:

A local distance determination system capable of indoor operation. A local absolute positioning system capable of indoor operation. A sensitive GPS system capable of indoor operation. Software for predicting the path of electromagnetic wave propagation with applications to positioning.

2. Local Positioning System: Complete Custom DesignAs described above, we plan to develop two different location systems. One completely custom designed by our

research team, and another that we design that also uses a nascent Motorola chip. First, we describe the complete custom approach.

2.1. Measuring Absolute Distance

To measure absolute distance we use ultra-fast clocks along with the speed of light. Inexpensive ultra-fast clocks are now possible to build as a result of the microelectronic revolution. Complementary Metal Oxide Semiconductor (CMOS) Transistors are the basic building blocks of most modern integrated circuits (chips). Technology has moved so quickly that it is now possible to routinely build chips with millions of transistors that have critical dimensions of less than 0.2 microns. In addition to packing a large number of transistors on a chip, their small size allows these basic building blocks to operate on time scales of less than 0.1 nanosecond. Over the past several years, it has become possible for the small business to build chips using these state-of-the-art transistors. We design our circuit, and then contract out the fabrication to the manufacturer. (The manufacturer we use is the MOSIS facility, which specializes in small volumes.) This enables small business to develop products based on the most modern technology.

We have used ultra-small transistors to build ultra-fast clocks. In fact, with such small devices we have designed, and had electronic clocks fabricated that operate so fast that we can use them to measure the speed of light. For example, we have designed electronic clocks that can measure times as small as 0.1 nanosecond. By knowing that the speed of light is 3 X 1010 cm/sec, we can use our clocks, in conjunction with electromagnetic wave propagation, to measure distances with a resolution of 3cm [(3 X 1010 cm/sec)(1 X 10 –10 sec )=3cm].

To understand how we measure distances using fast clocks and electromagnetic (EM) waves, consider the following. At location ‘A’ we have a transceiver that is capable of sending and receiving electromagnetic signals. Connected to the transceiver is a very high frequency clock that is operating at a known frequency of say 10GHz. At location ‘B’ we have another transceiver. To measure the distance between points A and B, the transceiver at point A sends an EM signal to B, at the same time the clock at A starts. After a finite amount of time, transceiver B receives the signal and transmits it back to A. When A receives the signal the number of periods on the clock is recorded, which is the time it has required for the EM wave to go to from A to B and back to A. By multiplying this time by the speed of light, we can determine the distance between A and B. Of course, the process is complicated by numerous factors. These complications include the intrinsic time required for transceiver B to get ready to respond, and the possibility for the signal to take an indirect path. The multi-path option is of particular concern inside structures. Before we explain how our proposed research program overcomes this difficulty, we will first extend our basic methodology from measuring absolute distance to measuring distance and precise location.

2.2. Measuring Precise Location

Suppose we want to measure the location of a point B. We achieve this by extending the

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above methodology by using two more transceivers. We place transceivers A1, A2 and A3 at three known locations. Each transceiver has its own clock. Using the algorithm discussed above, we can find the distance between point B and A1, A2, A3. By knowing the distance between B and the three positioned transceivers, a simple geometric relationship will give the precise location of point B relative to A1, A2 or A3.

2.3. Hardware Design

We plan to have several versions of our location detecting systems. Each system will have transceivers as their basic components. We will first design these transceiver chips, and then have them fabricated using the MOSIS chip fabrication facility. Our transceivers will be designed and fabricated using CMOS technology. The transceivers will consist of a receiver and a transmitter. The transmitter will use a continuous wave carrier generated with a frequency synthesizer that is based on a phase-locked loop. We plan to use an FSK modulation scheme enabled by a digital word selector. The transmitter output will be a tuned, common source-type power amp matched to a 50ohm patch antenna. We will operate at 2.47GHz. The advantage of using high frequencies such as these, is that it allows use of passive components that are small, and thus pocket size transceivers. This frequency is accessible using inexpensive CMOS components from a 0.25micron feature length process, available through MOSIS. The basic design of our transceivers is illustrated in Fig. 1, which is a layout of an FSK transmitter chip that we already have had fabricated using MOSIS.

The receiver section will also be based on the phase-locked loop (PLL) topology. The input stage will consist of a low noise tuned amplifier, which feeds the PLL. The PLL will drive a voltage-controlled oscillator that will be used to demodulate the FSK signal. The high speed clock, used to calculate the time required for signals to travel, will be a will be a three stage ring oscillator that inputs an asynchronous counter. The clock frequency will be approximately 10GHz in our prototype. Into the chip will also be designed the digital circuit that will convert the clock values into distances and location.

The circuits will be designed with the aid of the circuit simulator SPICE, and laid-out using the Cadence IC development software. We have recently designed several test chips using MOSIS to establish design parameters and fabricated several of our circuit building blocks, including PLLs, clocks and counters[1-3].

We are developing a lower frequency prototype of this system using off-the-shelf components. Schematics and circuit board layouts for this system are shown in Figures 2 and 3.

2.4. Accounting for Multi-Path Possibilities: EM Modeling

Measuring distance and location out of doors has less chance of being complicated by multi-path possibilities. However, inside structures multi-path propagation of EM waves is likely to occur. In any case, the methodologies we describe below for discerning the direct path can be applied to internal as well as external environments. To account for multi-path propagation we will combine our expertise in VLSI circuit design with our recent work in modeling electromagnetic wave propagation. By understanding the details of EM wave propagation, we expect to be able to predict the path of the EM wave between the various location transceivers. To achieve this we will model the propagation of EM waves between transceivers in edifices composed of standard building materials and designs. Modeling the propagation of EM waves is achieved by solving Maxwell’s equations, which are the fundamental mathematical equations that describe electromagnetism. Maxwell’s equations are a system of four 3-dimensional, time-dependent partial differential equations. The solution of these equations describes the characteristics of electric and magnetic fields. These equations are very

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complicated, and thus especially difficult to solve. In fact, before the advent of powerful computers, solutions of these equations were only obtained for the simplest cases. We have recently developed a new numerical method for solving these equations for investigating EM effects in computer chips[4]. We plan to extend this method to modeling EM wave propagation that occurs between transceivers both inside and outside buildings. The new method employs the alternating direction implicit (ADI) technique. This technique has the advantage of being able to resolve both large and small objects simultaneously. This will enable us to simulate the propagation of EM waves between positioning transceivers, and therefore help determine the path our EM waves are taking. Once we have adapted our computer chip field solvers for modeling electric fields inside structures, we plan to simulate wave propagation inside typical buildings to calibrate the simulator, as well as determine the optimal locations for our stationary transceivers.

3. Design Approach II: Positioning Based on the Motorola MG4000 IC.

3.1. Hardware Design II:Motorola Corporation has announced that it plans to sell a new GPS receiver that consists of

just one chip, the MG4000. The company claims that the sensitivity of the new MG4000 chip will be sufficient for use indoors. We plan to take advantage of this new design if and when it becomes available. According to the pre-released specification sheet, the single chip Motorola GPS receiver will output the longitude and latitude coordinates in an 8 bit digital word. We will build a system where the person (or object) whose position we want to detect, wears a circuit that contains the single chip GPS receiver. On the board will also be a transmitter that takes this digital word output of the GPS receiver, and inputs it into a transmitter. The location of the transmitter will then be sent to a base station receiver. To develop this technology we will use transceiver multi-chip modules produced by Linx Corporation. These modules are available in 20 pin dual in-line packages, and are capable of transmitting digital words of up to 10 bits. We have already prototyped transmitter-receiver systems based on the Linx module. The major limitation of the Linx module is that it operates at a frequency of 433MHz. While this frequency seems relatively large, it is often not sufficiently high to provide pocket size transceivers for all applications. After prototyping the system with the Linx transmitter module, we plan to raise the operating frequencies using our own transceiver systems based on the PLL-FSK technology we described above.

3.2 EM Modeling

While the Motorola chip does indeed seem promising, it is still unlikely that it will operate seamlessly within large buildings. To help understand its limitations, as well as help optimize its performance, we plan to simulate the EM radiation that is incident on the building from the global positioning satellite system. To achieve this we plan to extend our new Finite Difference Time Domain-Alternating Domain Implicit electromagnetic wave propagation modeling software to simulate wave propagation, originating from GPS satellites, that is incident on earthbound structures where we plan to operate the single chip GPS receivers. The upgrade of our software will require establishing a new finite difference mesh, as well as incorporating the atmospheric effects on EM wave propagation. These effects will then be integrated with the modeling of wave propagation inside the office buildings themselves. The union of both of these large and relatively small scales is made possible by the use of this new ADI algorithm.

1. Z. Dilli, and N. Goldsman, MOSIS Design number 65046; Design name: ringosc05; Technology: SCN3ME\_SUBM, lambda = 0.3; (An oscillator-counter chip test chip) 2002.

2. Z. Dilli and N. Goldsman, MOSIS Design number 64639; Design name: diginterf;Technology: SCNA, lambda = 0.8; (An oscillator-counter test chip) 2002.

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3. Y. Bai and N. Goldsman, MOSIS Design number: 65008; Design name: FSK; Technology: SCN3ME\_SUBM, lambda = 0.3; (An FSK transmitter test chip) 2002.

4. X. Shao, N. Goldsman, O. Ramahi, P. N. Guzdar, A New Method for Simulation of On-Chip Interconnects and Substrate Currents with 3D Alternating-Direction-Implicit (ADI) Maxwell Equation Solver. To be published in 2003 International Conference on Simulation of Semiconductor Processes and Devices.

Fig. 1: Layout of microchip FSK transmitter we have designed and developed when we reach the stage of prototyping the location position system using our own integrated circuits. The actual dimensions of the chip

are 2 X 2 mm2

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Fig 2: Schematic and Printed Circuit Board layout of our prototype distance determination circuit. This circuit is to be worn by the person/object whose distance is to be determined. The actual

dimensions are approximately 3 x 2 inches2.

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Fig. 3: Schematic and Printed Circuit Board layout of base station for determining distance. The actual dimensions are approximately 2 x 2 inches2.

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MASTER SCHEDULE Phase #

Schedule Item Month

# Description 1 2 3 4 5 6 7 8 9 10 11 12

1System and algorithm conceptual design

2System specification

3

Prototype hardware development

4

Prototype software development

5

System testing and evaluation

6

Reporting and documentation

7

8

9

10

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7. Role of each participant in this project:

(a) University - Algorithm Development and Hardware Prototype for the Personal Location Device (PLD)The UMD will work on the design of algorithms and hardware for the PLD including design of custom circuits for location and sensing.

(b) Company – Dr. Gilmer Blankenship will manage the activities at TRX. A new engineer will be hired to develop the software and the hardware design for the FSS Command Station.

8. Describe equipment and facilities to be used:

(a) University – The UMD research will be carried out in Dr. Goldsman’s Laboratory in the Electrical and Computer Engineering Department. This laboratory has adequate facilities for the design, fabrication, and testing of small custom circuits.

(b) Company –TRX’s principal office is at 10001 Derekwood Lane, Lanham, MD in space provided by Techno-Sciences, Inc. (a company owned in part by Dr. Blankenship). TRX has access to an extensive array of equipment for software development and hardware design.

9. Conflict of Interest : If no appearance of conflict, please initial. Company: P.I.:

If an employee of the University System of Maryland or any other State of Maryland employee has a connection to the company, or if there are other circumstances which could cause or give the appearance of a conflict of interest, please disclose particulars. Note: The campus approval process should be started early to avoid a delay in issuing a contract.

Dr. Gilmer Blankenship, TRX President, is the majority stockholder of TRX-Systems, Inc. and is also an employee of University of Maryland, Department of Electrical Engineering.

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10. Cost Estimates

(a) COST ESTIMATE -- UNIVERSITY, Phase I

(Add descriptive information in space provided) Line Items Categories

1. Salaries/Wages (include time, even if no charge, and rates)

Faculty: Neil Goldsman $

Graduate Students: $

Undergraduate Students: $ 5,000

Technicians: $

Secretarial/Clerical: $

Other: $

All salaries and wages: $

Employee benefits: $

Subtotal: $

2. Purchased Items (describe)

Equipment: $

Parts and materials: $

Other: $

Subtotal: $

3. University and Department Charges (describe)

Supplies: $

Lab: $

Other: $

Subtotal: $

4. Subcontractors/Consultants (Who? Purpose?)

$

$

Subtotal: $

5. Other (describe, and give travel destinations)

Travel: $

Publishing: $

Other: $

Subtotal: $

TOTAL DIRECT COSTSOVERHEAD ( % of )

TOTAL UNIVERSITY BUDGET Note: Transfer 10(a) to page 14, item 11(a).

(10(a))

$$

$

10. Cost Estimates

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(b) COST ESTIMATE – COMPANY EFFORT, Phase ________

(Add descriptive information in space provided) Line Items Categories

1. Salaries/Wages (include time, even if no charge, and rates)

Supervisory: 200 @ $75.00 $ 15,000

Engineers: 1100 @ $30.14 $ 41,256

Technicians/shop: $

Secretarial/Clerical: $

Other: $

All salaries and wages: $

Employee benefits (if not part of overhead): $

Subtotal: $ 56,256

2. Purchased Items (describe)

Equipment: Computer Systems for Development $ 5,000

Parts, materials and supplies: $

Other: Software for development $ 2,000

Subtotal: $ 7,000

3. Subcontractors/Consultants (Who? Purpose?)

$

$

Subtotal: $

4. Other (describe, and give travel destinations)

*Equipment loan: including delivery: $

Travel: $

Other: $

Subtotal: $

TOTAL DIRECT COSTSOVERHEAD ( 100 % of 56,256)

TOTAL COMPANY BUDGET Note: Transfer 10(b) to page 14, item 11(b).

(10(b))

$ 63,256$ 56,256

$ 119,512

*Describe equipment:

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(10. cont'd)

(c) DESCRIPTION AND ESTIMATED VALUE OF EQUIPMENT GIFT, Phase

This is only for equipment required for the project which will be given by the Company to the University. Describe equipment and identify make, model, other specifications if known:

N/A

If gift of new equipment, so indicate and give price, less normal university discount (if applicable). If used equipment, indicate age and condition and estimated market value. Also itemize related costs, if applicable, such as shipping.

Total value of equipment delivered 10(c) $

Note : Transfer 10(c) to page 14, item 11(c).

Date for transfer of equipment to the University

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FINANCIAL Phase

11. PROPOSED PROJECT BUDGET:

(a) University budget (from page 11, item 10(a)) $ 70,000

(b) Company budget for its own effort (from page 12, item 10(b))

$ 119,512

(c) Company budget for equipment gift (from page 13, item (10(c))

$

(d) Total Company budget (line b + c) $ 119,512

TOTAL PROJECT BUDGET (line a +d) $ 189,512

PROPOSED MIPS FUNDING AND COMPANY MATCHING CONTRIBUTION

Note : Funding by MIPS & Company (lines e & f) equals University budget (line a).

(e) By MIPS program $ 63,000

*(f) Company cash match (see below) $ 7,000

(g) Company equipment gift (from line 11 (c)) $ 0

(h) Total Company contribution to University (lines f +g = h)

$ 7,000

**(i) Company budget for its own effort “in-kind” (from line 11(b))

$ 119,512

(j) Total Company Match (see below) (lines h+ i = j)

$ 126,512

(k) Is funding proposed above the only funding for this research? yes no If no, explain below or on a separate sheet, page 14(a).

*Minimum cash match is: **Minimum in-kind match is:

75% of line 11(a) for large company. 15% of line 11(a) for large company.50% of line 11(a) for medium company. 25% of line 11 (a) for medium company.

35% of line 11(a) for small company. 30% of line 11(a) for small company. 10% of line 11(a) for start-up company. 35% of line 11(a) for start-up company.

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12. Budget for Future Project Phases

If you plan to submit a Phase 2 proposal, provide estimates. These estimates may be modified later.

Phase UniversityBudget $

CompanyBudget $

Total ProjectBudget $

2 $ 170,000 $ 200,000 $ 370,000

13. Will any project participant bring to the project an invention, improvement, discovery, software or intellectual

property (owned by the participant, University, or third party) that will be modified or extended as part of the project scope of work, for which the participant will claim intellectual property rights or will expect to receive compensation?

yes no

If yes, give name and organization of participant, the property to be modified or extended and the intellectual property rights claimed. If University owned, please also reference the identification number.

X

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TERMS AND CONDITIONS

1. Multiyear Projects

All project applications will be evaluated based on the entire project. A selected two-phase project will be funded for the first phase only. Successful performance of Phase 1 and a satisfactory Phase 2 application are prerequisites for funding of the second Phase.

2. Company Cash Payment

The Company cash contribution page 14, item 11(f) is a single payment made at the beginning of the project. Checks are to be made out to the University of Maryland and mailed to the MIPS office.

3. Proprietary Information

If Company proprietary information is included with this application or is transmitted to University personnel during the course of the project, it should be labeled "Company Proprietary" and contained in a separate envelope marked "Company Proprietary". If requested by MIPS, Company must provide MIPS with written justification as to why such materials should not be disclosed by MIPS if disclosure is requested by a third party under the Maryland Public Information Act. Any proprietary information submitted to MIPS will be safeguarded by MIPS personnel. When proprietary information is transmitted to MIPS for use on the project, MIPS will forward it to the Principal Investigator (P.I.) with instructions for safeguarding the material. Under University policy, reasonable efforts will be made to protect such information or materials from disclosure, but liability will not be accepted if such efforts fail.

4. Economic Impact Reports

The Company is to submit a report one year after project completion, describing the commercial impact of the project. The report is to be brief and is to address the type of issues that are projected in this application. Additional economic impact reports are to be submitted at the end of successive years, for a total of five (5) or more reports. MIPS will send requests to the Company for each of these five (5) reports.

5. Communication

Company Project Manager, University P.I. and MIPS staff shall communicate whenever appropriate to avoid or minimize any problems, and to enhance project activities. The parties shall meet to discuss plans and answer any questions at the beginning, middle, and end of the project.

6. Credits

If the Company or University releases project information for publication or for use by the media, appropriate credit is to be given to the MIPS Program and University of Maryland, College Park.

SUBMIT THIS PAGE WITH PROPOSAL

Attach Principal Investigator’s two-page C.V. after this page 16.

Start-up companies – attach your business plan executive summary, financial pro forma and current financials after the C.V.

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