Mike Redshaw, TPP President

1
Technology Commercialization

• Presented by
• Mike Redshaw, TPP President
• The Patuxent Partnership (TPP) Quarterly
  Membership Meeting
• November 9, 2001

2
TPP Technology Committee

• Technology Committee Chartered to Conceive,
  Develop, Foster and Support TPPs Technology
  Commercialization Efforts
• Committee Chair - Wayne Devereux, Veridian
  Engineering
• Updated TPP Strategic Plans for Technology
  Committee Goals
• Facilitate Technology Commercialization
• Work the NAVAIR Technology Commercialization
  Initiative
• Foster a Technology Entrepreneurial Environment
• Support Business Incubation

In Support of This Goal and Objectives, TPP Has
Collaborated with TEDCO and Contracted With
NAWCAD to Execute the NAVAIR Technology
Commercialization Initiative (NTCI)
3
Commercialization Activities

• A Continuum of Pre-Commercial Activities Must Be
  Accomplished to Transition Technology to a
  Commercial Product for NAVAIR Use
• Commercialization Strategy, Product Team
  Development, and Technology Maturation/First
  Article Preparation Are Required to Proceed
  Together

4
NAVAIR Technology Commercialization Initiative
(NTCI)

• Funded Initiative to Provide Outreach Assistance,
  Enable Transfer and Sponsor Commercialization of
  Technology for NAVAIR
• NAVAIR Provides Budget Up To 800K (for 15 mo.)
• High Value Labor and Company Match Provides
  Additional Budget Up To 800K
• NTCI Program Collaboratively Managed by The
  Patuxent Partnership and Marylands Technology
  Development Corporation (TEDCO)
• NTCI Agreement Managed by NAWCAD Office of
  Research and Technology Applications (ORTA) for
  NAVAIR
• As a Dual-use Program, the NTCI Supports Both
• Development of NAWCAD Technologies for Commercial
  Market (Spin-out)
• Development of Commercial Technologies to Meet
  Fleet Needs (Spin-in)

5
NTCI Management

• NTCI Program Management Team (PMT)
• TPP and TEDCO Staff Support Daily Program
  Management Activities
• NTCI Integrated Planning Team (IPT)
• TPP, TEDCO and NAWCADs ORTA Provide
  Commercialization Proposal Review and Make
  Recommendations to NTCI Board
• NTCI Board
• TPP, TEDCO and NAWCAD Leadership Review IPTs
  Recommendations, Vote on Proposal Funding, and
  Provide Oversight of NTCI Program

6
NTCI PMT Activities

• Facilitate the Transfer of Technology To/From
  NAVAIR
• Develop Team, Infrastructure and Processes
• Review NAWCAD Portfolio of Technologies/Patents
  for Spin-Out
• Evaluate Fleet Needs for Commercial Technology
  Development Spin-In
• Conduct Outreach
• Seek Industrial Partners Able to Share in the
  Cost, and Benefit
• Identify Companies Interested in NAVAIR
  Technology Development
• Host / Attend Showcases, Workshops, Conferences
  and Dinners
• Pursue Key Dual-Use Technologies That Meet Fleet
  Industry Needs

7
Pre-Commercialization Fund (PCF)

• Principal NTCI Support Mechanism Is a
  Pre-Commercialization Fund
• Can Award up to 50,000 in Support of Each
  Technology Development Project That Fall Within
  the Scope of NTCI Dual-Use Guidelines
• PCF Awards Are Made on A Cost-Matching Basis,
  With Company Match Determined by a Sliding Scale
  Based on Company Size
• Limited PCF Funding Reviews Must Balance Budget
  vs Opportunity
• Spin-Out Development Projects May Require a
  License to Develop and Sell NAWCAD Patents or
  Other Intellectual Property
• Licenses to NAWCAD Technology Must Be Negotiated
  With the NAWCAD Office of Research and Technology
  Applications (ORTA)

8
NTCI PCF Proposal Process

• Proposals May Be Submitted Any Time and Must
  Include
• NTCI Proposal Cover Sheet
• Commercialization Plan Defining Scope of Work and
  Budget
• Details on NTCI Web Site at www.paxriver.org/ntci.
  htm
• Proposals Must Be Submitted for NTCI IPT Review
• No Required Topics, But Technology Must Meet
  Dual-Use Fleet Needs
• Open Submission Period (No Deadline, But Limited
  PCF Budget)
• Anticipated 8 Week Review Process
• NTCI IPT Reviews PCF Proposals on a Monthly
  Basis
• IPT Will Review Proposals According to Published
  Evaluation Criteria and Provide Recommendations
  to NTCI Board
• NTCI Board Will Meet Regularly to Review IPT
  Recommendation
• and Make Final Proposal Approval and
  Funding Decisions

9
Proposal Commercialization Plan

• Primary Document Used for Candidate Review and
  Ranking and Must Include the Following
• Nature of the Companys Business, Identifying
  Products and Services That Have Been Successfully
  Commercialized in the Past 5 Years or Are
  Proposed for Commercialization
• A Copy of the Companys Financial Report And/or
  the Latest Annual Report
• A Statement Indicating If the Company Qualifies
  As a Small Business Firm
• An Overview of How the Company Plans to Use the
  Licensed Technology, Including Any Products That
  Will Be Developed and Their Potential Customer
  Base
• A 3-to-5 Year Pro Forma Income Statement With
  Supporting Data
• A Chart Showing Project Milestones With
  Accompanying Timelines and Demonstration/Validatio
  n Milestones
• A Statement of the Estimated Manpower, Finance,
  and Other Company Resources Believed Required
• A Statement of the Field(s) of Use in Which Your
  Company Intends to Apply the Technology
• Define Anticipated Assistance Required From the
  Patent Holder
• A Product Demonstration Statement or Plan to Be
  Used to Determine the Level of Success Achieved
  at the End of the Commercialization Activity
• Funding Desired From the Pre-commercialization
  Fund
• Proposed Royalty Rates Including Up-front Fees
  and Yearly Minimums
• Completion of the NTCI Project Proposal Cover
  Sheet
• Completion of the Licensing Form As Applicable

10
Submittal of PCF Proposals

• Submission to
• NAVAIR Technology Commercialization Initiative
• C/O The Patuxent Partnership
• 21783 North Coral Drive, Suite 2C
• Lexington Park, MD 20653
• Attention NTCI IPT301.863.0222 or 800.939.NTCI
• Electronic Submission to ntci_at_paxriver.org
• Additional NTCI Information
• NTCI Web Site at www.paxriver.org/ntci.htm
• Martin Fairclough TPP Executive Director / NTCI
  PMT
• [phone] / faircloughm_at_starpower.net
• Steven L. Fritz, Ph.D TEDCO Technology Transfer
  Director / NTCI IPT
• [phone] / sfritz_at_marylandtedco.org

11
Additional Funding Opportunities

• TEDCO Maryland Technology Transfer Program Awards
  Reimbursable Grant
• 50,000 Per Project
• May Be Used to Supplement PCF Grant
• Review and Award Managed by TEDCO Staff
• Additional TEDCO Information
• www.marylandtedco.org
• Maryland Technology Development Corp.
• 5575 Sterrett Place, Suite 240
• Columbia, MD 21044
• Attention Steven L. Fritz, Ph.D
• [phone] / sfritz_at_marylandtedco.org

12
TPP Technology Committee Support

• Technology Committee Needs Active Members to
  Volunteer and Support NTCI PMT and Other
  Activities
• To Become an Active Volunteer Contact

Mr. Wayne Devereux TPP Technology Chair / NTCI
IPT Veridian Engineering 22309 Exploration
Drive Lexington Park, Maryland 20653 Office
[phone] Fax [phone] wayne.devere
ux_at_veridian.com
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Summary

• NTCI Program Will Facilitate Technology
  Commercialization
• Spin-Out of NAWCAD Technologies
• Insertion of Commercial Technology/Products into
  Fleet
• TPP and TEDCO Will Manage NTCI Program and
  Monitor Progress
• Leverage State and Local Resources for Success
• Program and Projects Monitored and Reported On
• Business Development and Technology Outreach
  Efforts
• Commercialization Efforts Promoted, Developed and
  Supported
• Progress Coordinated and Reported with NAWCAD
• PCF-Funded Commercialization Projects
• Broad Dual-Use Scope, Open Submission Periods,
  and Fast Reviews
• Matching Funds Shares Technology Development Risk
  and Rewards
• Project Reviews Provided to Increase Chance of
  Success