----

----

| 1.1. | With Resolution No. DGRCIC-2009-0066 of October 29, 2009, and having complied with the requirements provided for in number 31 of art. 6 of the Organic Law of the National System of Public Contracting, the Dirección General de Registro Civil, Identificación y Cedulación was declared in institutional emergency, Resolution that was submitted to the National institute of Public Contracting with official letter No. 2009-623-DIRG of October 30, 2009 received on November 4, 2009, for publication in the www.compraspublicas.gov.ec website; hereby complying with what is declared in article 57 of the Law ibidem. Art. 2 of the aforementioned emergency resolution, authorizes contracting the works, goods, or services, including those related to consultancy that are required to overcome the institutional emergency situation. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2. | According to what is stated in the Fifth postulate of Resolution No. DGRCIC-2009-0066 of October 29, 2009, the declared institutional emergency is directly related with the state of national commotion that the country is undergoing due to the excessive increase in crime; reason for which it is urgently required that the implementation of the uniform technological solution that would allow, in an integrated and complete manner, the operation of the new secure and inviolable enrolment model in the system and in the database be completed. This need was pointed out and reiterated by the Director of Technological Management of the institution in memoranda No. 309-GT-PC-FC-2009 of October 26 de, 2009 and No. 393-GT-PC-FC-2009 of November 13, 2009;, for which the request of approximately **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** electronic identification cards necessary for a 6 month supply was made, and this request, due to budgetary availability was partially satisfied with the acquisition of **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** units, according to the contract signed on November 11, 2009; and the acquisition of the **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** electronic identification cards, would remain pending as well as the contracting of the implementation of the IT solution on a national scale. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 1.3. | From the external studies, performed by experts who were hired to issue a technical report about the technology solution implemented in the Guayaquil Pilot Plan, after the corresponding analysis and verification, it was concluded that the technology contracted in the Pilot Plan is the best existing alternative on an international scale for the institutional purposes and objectives and, consequently, it is considered beneficial that it be implemented nationwide, since it is convenient for the institution and for the country to preserve the investment and urgently develop the already proven platform. Consequently, it considered that the SUPPLY, INTEGRATION AND MAINTENANCE SERVICES, OF THE NATIONWIDE IT SOLUTION OF THE TECHNOLOGICAL MODERNIZATION PROJECT OF THE DIRECCION GENERAL DE REGISTRO CIVIL, IDENTIFICACIÒN Y CEDULACION should be contracted with the same company that implemented the Pilot Plan in Guayaquil, and in this way it would guarantee the operative and technical functionality of the Project. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4. | It is the duty of the Ecuadorian State to guarantee the exercise of the right to identity of its persons, which is declared in number 28 of article 66 of the Constitution of the Republic  in accordance with number 3 of article 261 of the regulation ibidem |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.5. | Article 57 of the Organic Law of the National Public Contracting System provides that in cases of emergency, the contracting entity can contract in a direct form and under the responsibility of the supreme authority, the works, goods or services, including consulting, required strictly to overcome the emergency situation. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.6. | Apart from the regulation pinted out in the preceding subsection, article 95 of the General Regulation of the Organic Law of the National Public Contracting System contemplates the power of directly contracting the development and extension of existing technologies. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.7. | The second subsection of article 25 of the General Regulation of the Organic Law of the National System of Public Contracting states that there is no requirement for emergency contracting to be included in the Annual Contracting Plan (PAC). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.8. | By Memorandum No. 2009-188-DF of November 25, 2009 the availability of financial resources was certified, in order to address the financial obligations derived from the required contracting charged to budgetary item No. 84.01.07.000.1. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9. | With Resolution No. 000093, dated November 27, 2009 the beginning of the process of Direct Contracting by emergency No. DGRCIC-008-2009 was ordered for the SUPPLY, INTEGRATION AND MAINTENANCE SERVICES, OF THE NATIONWIDE IT SOLUTION OF THE TECHNOLOGICAL MODERNIZATION PROJECT OF THE DIRECCION GENERAL DE REGISTRO CIVIL, IDENTIFICACIÒN Y CEDULACION; and, consequently a direct invitation was sent to OTI to present its technical financial proposal; to which were attached the corresponding bidding specifications |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.10. | On December 2, 2009, On Track Innovations Ltd. (OTI) submitted its technical financial bid within the contracting process of the reference. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------|

| 1.11. | By report No. CT-001-DGRCIC-0008-2009 of December 7, 2009, the Technical Commission made up by presided by Eco. Edwin Loayza, Sub director General of the Registro Civil, and made up by Ing. Patricia Cruz, Director of Technological Management and Ing. Marjorie Valdiviezo, professional designated by the maximum authority, to rate the bid submitted by On Track Innovations Ltd. (OTI), recommended awarding the contract which is the object of the aforementioned process of the company which was invited, by virtue of its compliance with the requisites requested by the Dirección General de Registro Civil, Identificación y Cedulación, through its bidding specifications. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.12. | The Director General of the Registro Civil, Identificación y Cedulación, by Resolution No. DGRCIC-2009-00103 of December 8th 2009, based on the report mentioned in the preceding paragraph, awarded the contract for the SUPPLY, INTEGRATION AND MAINTENANCE SERVICES, OF THE NATIONWIDE IT SOLUTION OF THE TECHNOLOGICAL MODERNIZATION PROJECT OF THE DIRECCION GENERAL DE REGISTRO CIVIL, IDENTIFICACIÒN Y CEDULACION to On Track Innovations Ltd. (OTI), for the amount of USD. 27,990,777.00 (plus VAT). |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.13. | In the handling of this process no solemnity whatsoever has been omitted that might affect its validity, reason for which the process is valid. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.1  | The following documents, which must be recorded, are an integral part of the Contract: |
|-----------|----------------------------------------------------------------------------------------|

|   | 2.1.1. | The documents certifying the quality of the parties present and their ability to conclude the contract;. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | 2.1.2 | The printout of the web page www.comprapublicas.gov.ec showing that On Track Innovations Ltd. (OTI) is recorded in the National Register of Suppliers (RUP); |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.1.3.  | The Resolution that declares the institutional emergency; |
|--------|--------------|-----------------------------------------------------------|

|   | 2.1.4.  | The Resolution that declares the beginning of the Direct Contracting Process; |
|--------|--------------|-------------------------------------------------------------------------------|

|   | 2.1.5.  | The Certification of budget availability; and, |
|--------|--------------|------------------------------------------------|

|   | 2.1.6.  | The Award Resolution. |
|--------|--------------|-----------------------|

| 2.2. | The following documents, which must not be recorded, are part of the contract: |
|------|--------------------------------------------------------------------------------|

|   | 2.2.1. | The pre-contractual documents of the project that is contracted; including the bidding specifications of the process, particularly section V called “General and technical specifications”, in which the following subsections are included: |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | “5.1 General Project Information (in which the technology and the architecture of the system are stated) |
|--------|---|----------------------------------------------------------------------------------------------------------------|

|   | - | 5.2 Roles and responsibilities provided for the implementation of the project (scope of the responsibilities assumed by each one of the parties) |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | 5.3 Project management methodology |
|--------|---|------------------------------------|

|   | - | 5.4 Maintenance obligations |
|--------|---|-----------------------------|

|   | - | 5.5 Confidentiality obligations |
|--------|---|---------------------------------|

|   | - | 5.6 Form formats” |
|--------|---|-------------------------|

|   | 2.2.2. | The technical and financial offer submitted by the Contractor, included in it: the detailed description of the characteristics and technical specifications of the good and services offered; form No. 6 which states the List of Goods, services and prices, as well as the Project Implementation  Plan (Schedule); |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 2.2.3. | The following Guarantees: |
|--------|--------|---------------------------|

|   | 2.2.3.1.  | Of Full Compliance with the Contract |
|--------|----------------|--------------------------------------|

|   | 2.2.3.2.  | For the advance payment |
|--------|----------------|-------------------------|

|   | 2.2.3.3.  | Technical Guarantees |
|--------|----------------|----------------------|

|   | 2.2.4. | The following appendices: |
|--------|--------|---------------------------|

| · | “System”.-                    | The IT solution required for the nationwide expansion of the Pilot Plan implemented in the city of Guayaquil, including the hardware, software, and other required services, as it is described in the technical specifications including the provision of **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** electronic identification cards; system which must contain among other features the capacity to verify the real identity of the identification card holders by biometric information. |
|--------|------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| · | “Electronic Identification Card”.- | Electronic person identification document, which includes, among other features, the capability to ensure the true identity of the cardholders by biometric information.                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| · | “Material breach”.-                | a breach of commitment, obligation, warranty or representation of any provision of the following clauses or appendices in this Contract: Terms of Payment, Guarantees, and Confidentiality.                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| · | “Main System”.-                    | The components that enable people to register and obtain the new electronic identification card and inscriptions of various kinds, based on OTI ́s Magna system.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| · | “Final Delivery”.-                 | The final delivery of all the goods and services as detailed in the List of Goods and Services provided for in the proposal submitted by OTI.                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

----

| 7.1 | Guarantee of Due Fulfillment of the Contract.- THE CONTRACTOR, according to what is provided in the second subsection of art. 57 of the Organic Law of the National System of Public Contracting, upon signing this contract submits the due fulfillment guarantee/s to THE CONTRACTING PARTY, to guarantee compliance thereof, as well as the obligations that are contracted on behalf of third parties related to the contract. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | Advance Payment Guarantee.- To ensure the proper utilization of the advance payments that THE CONTRACTING PARTY makes, THE CONTRACTOR will deliver on behalf of THE CONTRACTING PARTY, prior to receiving them, the bank guarantee/s for an amount equivalent to the total of the advance payment; that is, 40 % of the contract amount. The guarantee/s will be reduced to the extent that the advance payment is amortized, until its/their total payment. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | Balance Guarantee.- In order to guarantee the 60% balance of the amount of the contract, before receiving the corresponding amount, THE CONTRACTOR will deliver to THE CONTRACTING PARTY the bank guarantee/s for an amount equivalent to the total amount that is received and according to APPENDIX in which the payment method is stated. The guarantee/s will be reduced to the extent that the advance payment is amortized, until its/their total payment. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4 | Technical Guarantees.- To ensure quality and proper functioning of the electronic identification cards, to be delivered under the fulfillment of this contract, THE CONTRACTOR, upon signing the contract, and as an integral part thereof, provides a technical guarantee that will be valid for 10 years. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | a) | Due to force majeure alleged by THE CONTRACTOR and accepted as such by THE CONTRACTING PARTY; |
|--------|----|--------------------------------------------------------------------------------------------------------------|

|   | b) | Due to suspensions in the execution of the contract ordered by THE CONTRACTING PARTY, and not due to causes attributable to the CONTRACTOR; for the duration of the suspension; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Due to delays or breach of the contractual obligations by THE CONTRACTING PARTY, whether related to its payments to be made under this Contract or any other obligation of THE CONTRACTING PARTY. Such breach or delay will cause an automatic extension of such length of time as will be justified by THE CONTRACTOR. To this effect, the parties agree that a breach or delay will generate time extensions for a period equal to, or greater than, the length of time of the delay caused by THE CONTRACTING PARTY; without it being possible to demand THE CONTRACTOR’s fulfillment of its obligations as long as THE CONTRACTING PARTY’s contractual obligations remain unfulfilled. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | Due to delay that does not exceed 14 days,. |
|--------|----|---------------------------------------------|

|   | b) | If such delay is caused by the action of THE CONTRACTING PARTY (even in the event of delay in response to requests or requirements on the part of THE CONTRACTOR); |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | If the delay will not result in a change in the Final Delivery Date of the Project. |
|--------|----|-------------------------------------------------------------------------------------|

----

|   | a) | To comply with the obligations under the contract, and in the documents thereof, in an agile and timely manner. |
|--------|----|-----------------------------------------------------------------------------------------------------------------|

|   | b) | To provide timely solutions to problems arising in the execution of the contract and that are not attributable to THE CONTRACTOR. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | To facilitate the provision of work permits for foreign nationals working for THE CONTRACTOR, as may be required during the execution of this Contract. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | a) | The arbitration will be in Law. |
|--------|----|---------------------------------|

|   | b) | The parties submit to the National Center for Arbitration and Mediation of the Chamber of Construction of Quito CENAMACO. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------|

|   | c) | The provisions of the Law of Arbitration and Mediation will be applicable, as well as those in the regulations of the National Center for Arbitration and Mediation of the Chamber of Construction of Quito CENAMACO. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | The Arbitration Tribunal will be made up of three arbitrators. The selection and constitution procedure of the Tribunal will be provided in the Law and in the Regulation of the National Center for Arbitration and Mediation of the Chamber of Construction of Quito CENAMACO. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | The arbitrators will be attorneys preferably with experience in the subject matter that motivates the controversy. The designated arbitrators may or may not belong to the list of arbitrators of the Center. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f) | Matters resolved through arbitral award will have the same validity as the final judgements passed by ordinary justice. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------|

|   | g) | Ecuadorian legislation is applicable to this Contract and its interpretation, execution and settlement. |
|--------|----|---------------------------------------------------------------------------------------------------------|

|   | h) | The venue for the arbitration is the city of Quito. |
|--------|----|-----------------------------------------------------|

|   | i) | The language for the arbitration will be Spanish. |
|--------|----|---------------------------------------------------|

|   | j) | The term to issue the arbitral award will be a maximum of 90 days, counting from the moment of swearing in the arbitrator(s). |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------|

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| 16.1 | Full compliance with contractual obligations; |
|------|-----------------------------------------------|

| 16.2 | Mutual agreement of the parties; |
|------|----------------------------------|

| 16.3 | Executed sentence declaring the nullity of the contract; or the termination of the contract at the request of THE CONTRACTOR; |
|------|-------------------------------------------------------------------------------------------------------------------------------|

| 16.4 | Unilateral declaration of THE CONTRACTING PARTY, in the event of breach by THE CONTRACTOR; |
|------|--------------------------------------------------------------------------------------------|

| 16.5 | Due to dissolution of THE CONTRACTOR ́S legal person that does not originate from internal voluntary decision of the competent bodies of said legal person. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| DIRECCIÓN GENERAL DE                     |                                      |
|---------------------------------------------------------|-------------------------------------------|
| REGISTRO CIVIL, IDENTIFICACIÓN                     | ON TRACK INNOVATIONS LTD. OTI             |
| Y CEDULACIÓN                                       |                                      |
|                                                    |                                      |
| /s/ Paulo Rodríguez Molina     | /s/ Diego Luis Rueda  Mosquera  |
| Ing. Paulo Rodríguez Molina                   | Ing. Diego Luis Rueda  Mosquera |
| DIRECTOR GENERAL                                        | LEGAL PROXY                          |
|                                                    |                                      |
| CONTRACTOR                                              | CONTRACTING PARTY                         |

----

| Appendix A: Payment Terms |
|---------------------------|

| 1. | Payments Terms for the Electronic ID Cards: |
|----|---------------------------------------------|

| Cards Supplies Value for | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | Base cards        | Total Price without VAT:                      | $3,720,000                                                                                                                                                    |
|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|-----------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |                                                                                                                                                 |              |                                          |                                                                                                                                                          |   |   |   |
|                     | Action                                                                                                                                               | Party             | % From Total Cards Value                      | Cards Shipment QTY                                                                                                                                            | Value without VAT | Expected Date | Milestone |
| 1.                       | Guarantee for the due fulfillment of the Contract for the provision of electronic ID cards G0                                                        | Contractor        | 5% of total value of Cards Price without VAT  |                                                                                                                                                          | $186.000 | 09/12/2009 | Issued no later than 24 hours after the signing of the Contract |
| 2.                       | Guarantee G1 for the  Good Use of the Advanced Payment                                                                                     | Contractor        | 40% of total value of Cards Price without VAT |                                                                                                                                                          | $1,488.000 | 09/12/2009 | Issued no later than 24 hours after signing of the Contract and will be effective ONLY AFTER receipt of the Advance Payment of 40% of the cards’ value P1* |
| 3.                       | Advance Payment P1And delivery of payment confirmation of 100%  of VAT                                                                     | Contracting Party | 40% of total value of cards Price             |                                                                                                                                                          | $1,488.000 | 16/12/2009 | Within 7 days after issuance of  the Guarantee G1 and G0Agreement Commencement - After signing of Contract &  Advance Payment * |
| 4.                       | Guarantee G1: Release                                                                                                                                | Contracting Party |                                          | Batch 1: **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | $1,488.000 | 23/05/2010 | After receiving the Goods Acceptance letter from the Contracting Party of the **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**cards of Batch 1 and no later than 10 days from the time Batch 1 arrived to Ecuador Customs |
| 5.                       | Guarantee G2 for remaining value                                                                                                                     | Contractor   | 60% of total value of Cards Price without VAT |                                                                                                                                                          | $2,232.000 | 14/05/2010 | Issued 6 weeks before Shipment of Batch 2 and will be effective ONLY AFTER receipt of the Advance Payment P2* |
| 6.                       | Payment P2                                                                                                                                      | Contracting Party | 60% of total value of cards Price             |                                                                                                                                                          | $2,232.000 | 22/05/2010 | Within 7 days after issuance of the Guarantee G2 |
| 7.                       | Guarantee G2: Release                                                                                                                                | Contracting Party |                                          | Batch 2: **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | $2,232.000 | 30/06/2010 | After receiving the Goods Acceptance letter for the **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**  cards from the Contracting Party in relation to Batch 2 and no later than 10 days from the time Batch 2 arrived to Ecuador Customs |

----

----

| 2. | Payments Terms for the System Deliveries: |
|----|-------------------------------------------|

| Milestone | Activity/Deliverables                                                                                                           | Party             | Expected Date                                                                               | Comments                                           | Value without VAT |
|-----------|---------------------------------------------------------------------------------------------------------------------------------|-------------------|---------------------------------------------------------------------------------------------|----------------------------------------------------|-------------------|
| PM0       | Agreement signing                                                                                                               |              | 09/12/2009                                                                                  |                                               |              |
|      | TOTAL SYSTEM AGREEMENT without VAT                                                                                              |              |                                                                                        |                                               |  $24,270.777 |
|      | System Agreement Due Fulfillment Guarantee                                                                                      | Contractor        | Delivered no later than 24 hours after signing of the Agreement                             | 5% of total value of System Price (without VAT). * | $1,213.539        |
| PM1       | System Advance Payment Remittance for 40% System Agreement Commencement - After Contract signed & Advance Payment paid | Contracting Party | No later than 7 days following the delivery of the Guarantee Not later than 16/12/2009 | 40% of Total System Value (without VAT)       | $9’708.312  |

----

| PM1.G | Advance Payment Guarantee                                               | Contractor | Delivered no later than 24 hours from signing of the Contract and Guarantee will be effective ONLY AFTER Payment PM1 was received* | 40% of total value of System (without VAT)And delivery of proof for VAT retention                                                                                                                                                                                      | $9’708.312 |
|-------|-------------------------------------------------------------------------|------------|------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|
| AM1   | Delivery of detailed System Requirements Document                       |       | Not later than 28/12/2009                                                                                                          | Reduction of 25% of the PM1.G – Reduction of Advance payment  Guarantee (equal to 10% of the total  value of the System)                                                                                                                     | $2,427.078       |
| AM2   | Delivery of detailed System Design Document                             |       | Not later than 29/01/2010                                                                                                          | Reduction of 25% of the  PM1.G – Reduction of Advance payment  Guarantee (equal to 10% of the total  value of the System)                                                                                                               | $2,427.078       |
| AM3   | First Office ready for Enrollment - system is installed and operational |       | Not later than 15/01/2010                                                                                                          | Reduction of 25% of the  PM1.G – Reduction of Advance payment  Guarantee (equal to 10% of the total  value of the System)                                                                                                               | $2,427.078       |
| AM4   | Shipment of the first 3 Offices system (1x Quito + 2x Guayaquil)        |       | Not later than 20/02/2010                                                                                                          | Reduction of 25% of the  PM1.G – Reduction of Advance payment  Guarantee (equal to 10% of the total  value of the System)(With this reduction, the totality of the 40% advance payment delivered by the Contracting Party is amortized) | $2,427.078       |

----

| PM2.G | Payment Guarantee for 60% of the value of the System                         |       | Issued 4 weeks before next Shipment. Guarantee will be effective ONLY AFTER Payment PM2 was received* | 60% of total value of System WITHOUT VAT                                                                                                                                   | $14’,562.466 |
|-------|------------------------------------------------------------------------------|------------|-------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
| PM2   | Payment of balance (60%) of value of the System                         |       | 4 weeks before next Payment Milestone  Not later than 28/01/2010                       |                                                                                                                                                                       | $14’,562.466 |
| AM5   | First 3 Offices ready for operation                                          | Contractor | Not later than 28/02/2010                                                                             | Reduction of 16.7% of the  PM2.G – Reduction of Advance payment  Guarantee for balance(equal to 10% of the total  value of the System) | $2,427.078         |
| AM6   | Shipment of the 12 Offices System                                            | Contractor | Not later than 18/03/2010                                                                             | Reduction of 25% of the PM2.G – Reduction of Payment  Guarantee for balance (equal to 15% of the total  value of the System)                     | $3,640.617         |
| AM7   | Shipment of the 12 Offices  System                                 | Contractor | Not later than 03/05/2010                                                                             | Reduction of 25% of the PM2.G – Reduction of  Payment  Guarantee for balance (equal to 15% of the total  value of the System)          | $3’640.617   |
| AM8   | Shipment of the balance of Offices system per quantity defined in Appendix C | Contractor | Not later than 11/06/2010                                                                             | Reduction of 25% of the PM2.G – Reduction of Payment  Guarantee for balance (equal to 15% of the total  value of the System)                     | $3’640.617   |
| AM9   | Final delivery                                                               | Contractor | Not later than 30/09/2010                                                                             | Reduction of 6.7% of the PM2.G – Reduction of Payment  Guarantee for balance (equal to 4% of the total  value of the System)                | $ 970.831          |
| AM10  | Delivery of CD with the Source Code                                          | Contractor | Not later than 15/10/2010                                                                             | Reduction of 1.6% of the PM2.G – Reduction of Payment  Guarantee for balance (equal to 1% of the total  value of the System)                     | $242.708           |

----

| 1. | All quoted prices in the Contract and this Appendix are in US Dollars. All Contracting Party payments to Contractor will be made in the same currency (US Dollars |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Contractor will provide guarantees for due fulfillment of the contract that for 5% of the total value of the contract will be valid until its finalization. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Contractor will provide advance payment and balance guarantees provided in the contract which will be reduced per the above agreed Acknowledged Milestones as mentioned in this document. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Partial deliveries and/or larger deliveries and/or shipments of milestones are allowed and will be seen, for the needs of payment, as fulfilled milestones. Also, the Contractor has the possibility to advance delivery time of the milestones planned. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Each phase is dependent upon the completion of the prior phase and the appropriate payment. A delay in the completion of a phase due to Contracting Party’s actions or omissions, or delayed payments – shall afford an automatic extension equal to the delay which shall be added to the following phase. If the delay is  over 3 weeks, then a new time table adding at least 2 months for implementation would be re-calculated and presented. It is noted that such delay may cause a much longer implementation plan. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6. | All provided prices are CIF at Guayaquil or Quito port. The supplied Goods are exempt of any local taxes. Contracting Party will manage and pay for the local handling of the supplied goods (Customs, transportation and others related). |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | No dispute or controversy between the parties will delay work on other segments that were fully paid, and will not delay payments on delivered segments. Nevertheless, Contractor has the right to suspend contractual performance in the case that the payments are delayed. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | If the Contracting Party did not issue the “Acceptance Certificate” within 15 business days after arrival to the port, it is deemed to have accepted the Goods and the Contractor has the right that the value corresponding to such delivery be amortized; and consequently, that the value will be deducted from the advance or balance guarantee which was granted, without prejudice to the Contracting Party’s right to effect quality control of the goods received and request the replacement of such goods which will not comply with the technical specifications provided in the corresponding Appendix. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | The deduction in the advance payments delivered, by the payment corresponding to each amortization, and consequently, the release of payments corresponding to such amortization, will occur at the earliest of (a) the presentation by Contractor of a written approval from Contracting Party to the effect that Contractor fulfilled the duties required for the payments; or (b) automatically, upon the expiration of each of the amortization dates provided in the Contract, and without need of previous or subsequent approval whatsoever. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Additional Payment Provisions – Form of Payment |
|----|-------------------------------------------------------|

| CORRESPONDENT BANK:                                                           |   | [Bank Leumi Le Israel BM]         |   |
|-----------------------------------------------------------------------------------------|--------|-----------------------------------|--------|
| Account name:                                                                 |   | [On Track Innovations Ltd. (OTI)] |   |
| Branch No:                                                                    |   | [876]                             |   |
| Account Number:             |   | [24610027]                        |   |
| Swift Code:                                                              |   | [LUMILITTLV]                      |   |
| Iban:                                                                                   |   | [IL860108760000024610027]         |   |

----

|   | /s/ Paulo Rodriguez MolinaEng. Paulo Rodriguez MolinaGeneral DirectorDireccion General del Registro Civil, Identificacion y Cedulacion del EcuadorContracting Party |   |   | /s/ Diego Rueda MosqueraEng. Diego Rueda MosqueraAttorney-in FactON Track Innovations Ltd. OTIContractor |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------|

----

| DIRECCORATE GENERAL OF THE REGISTRO CIVIL                |                           |
|---------------------------------------------------------------|--------------------------------|
| IDENTIFICACIÓN Y CEDULACIÓN     | ON TRACK INNOVATIONS LTD. OTI  |
|                                                          |                           |
| /s/ Paulo Rodríguez Molina           | /s/ Diego Luis Rueda Mosquera  |
|  Ing. Paulo Rodríguez Molina                   | Ing. Diego Luis Rueda Mosquera |
| DIRECTOR GENERAL                                              | SPECIAL PROXY             |
| CONTRACTING PARTY                                             | CONTRACTOR                     |

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| 1. | In no event shall either party, its employees, agents or subcontractors be liable to the other party for indirect, incidental, special or consequential damages from the contract signed by the parties. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The parties agree that the warranties expressly given in the agreement are in lieu of and exclude all other terms, representations, conditions or warranties, express or implied by statute, law or otherwise as to the quality, merchantability or fitness of the system for any particular purpose. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Other than the specific warranties provided in the contract, any statement, condition or warranty, express or implied, statutory or otherwise, including but not limited to as to the quality, merchantability, or suitability or fitness for any particular purpose of the system is hereby disclaimed. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The total liability of the CONTRACTOR for claims by the CONTRACTING PARTY will be limited to the price paid for the system, actually received by the CONTRACTOR in connection with the sale of the system to the CONTRACTING PARTY. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The CONTRACTING PARTY shall indemnify and hold the CONTRACTOR harmless against all claims, damages and liabilities asserted by any person or entity resulting directly or indirectly from any breach of the Contract or negligence by the the CONTRACTING PARTY, or by any of its employees or agents, or of any warranty or representation of the the CONTRACTING PARTY in relation to the Contract. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | The CONTRACTING PARTY shall purchase and maintain, at its own expense, insurance cover for all conventional risks on the system’s equipment, hardware and software, the deliverables, tangibles, intangibles, and other property, and keep each part thereof insured for its full replacement value which also includes cost of dismantling, erection, customs and import duties, sales and other taxes, if any. Said insurance will include a waiver of subrogation towards the CONTRACTOR and any one on its behalf. The CONTRACTOR and the CONTRACTING PARTY  shall maintain adequate insurance cover to cover their legal liability towards third parties for  death or injury to persons arising of the implementation of the contract  for  limits of liability of one (1) million dollars of the United States of America, per occurrence and in the aggregate. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/ Paulo Rodríguez Molina     | /s/ Diego Luis Rueda  Mosquera  |
|---------------------------------------------------------|-------------------------------------------|
|  Ing. Paulo Rodríguez Molina             | Ing. Diego Luis Rueda  Mosquera |
|                                                    |                                      |
| DIRECTOR GENERAL                                        | ATTORNEY-IN-FACT                          |
| DE REGISTRO CIVIL, IDENTIFICACION        | ON TRACK INNOVATIONS LTD.                 |
| Y CEDULACION DEL ECUADOR                           | OTI                                       |
| CONTRACTING PARTY                        | CONTRACTOR                                |

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| 1. | The general and technical specifications for the implementation of the project are defined in the Bidding Specifications; however the parties agree that if in the bid submitted by the CONTRACTOR the scope for the compliance with said specifications is defined, it will be applied to the implementation of the project related to the CONTRACTOR ́s bid. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The parties accept that the project execution terms require the installation of 36 offices nationwide, for which the CONTRACTOR proposed  a list of goods and services required to implement said project in its bid (form No. 6); however, the parties accept that it is possible that during the implementation of the project the quantity of goods or services required to install an office in particular may be modified, situation that the CONTRACTOR accepts to comply with without an additional cost for the CONTRACTING PARTY, as long as said partial modifications do not increase the totality of the goods and services offered.  For example, it may be specified that more equipment should be required in one of the offices to be installed, which will be possible with the decrease of the equipment that was originally provided for to be used in another office. This situation will be possible, as long as proof of said changes is stated in a document that is signed by the parties, through the following mechanism: 1) Change request performed by the CONTRACTING PARTY or by the CONTRACTOR; 2) Express and written acceptance by the counterpart; 2) Verification that said modification does not increase the totality of the goods and services offered and their prices; 4) Signing of the document that is proof of the change, signed by the CONTRACTOR and the Contract administrator. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Likewise the parties accept that the electronic identification cards that the CONTRACTOR must provide may be delivered for a different office than originally provided for; as long as said modification does not imply an increase in the total number of electronic cards to be provided by the CONTRACTOR. To that effect a written request performed by the CONTRACTING PARTY to the CONTRACTOR will suffice, indicating the office to which the required electronic cards will be assigned in which there is proof that said change does not imply an increase in the total number of electronic cards acquired. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The CONTRACTING PARTY declares and agrees that all the intellectual property rights that correspond to the design of the equipment and its components will continue being the property of OTI or its subcontractors, as applicable, except in those cases pointed out in the Contract or its appendices. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | The parties also agree and acknowledge that the patents, brands, intellectual property and other intellectual property rights belonging to the CONTRACTOR will be used exclusively by the CONTRACTING PARTY with the consent of the CONTRACTOR and during the validity of the Contract. Upon expiry or termination of the contract, the CONTRACTING PARTY will immediately discontinue the use of patents, brands, intellectual property and other rights without receiving compensation for said discontinuation and destruction or devolution to the CONTRACTOR of all the copies of software and documentation. This restriction does not include the internal use of the systems protected by the source codes to be delivered by the CONTRACTOR to the CONTRACTING PARTY. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 7. | The CONTRACTOR will deliver to the CONTRACTING PARTY a CD with the source codes of the IT solution implemented at a national scale for its own use, according to the last milestone (AM 10) which is stated in APPENDIX A of the Payment Terms. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | The CONTRACTOR is expressly, unconditionally and irrevocably committed to deliver to the CONTRACTING PARTY, free of cost, and at the sole request of the CONTRACTING PARTY, the graphic archives, designs and in general all the physical or electronic information or documentation or of any other nature that is in its possession and that is required  for the design of the electronic identification cards and its consumables, with the purpose of facilitating the CONTRACTING PARTY in the initiation of competitive selection process for the supply of electronic identification cards additional to those acquired from OTI, required to complete the identification card issuance process at a national scale, a contracting process in which the participation of several bidders is expected. To that effect the parties agree that the design information that the CONTRACTOR is committed to deliver to the CONTRACTING PARTY must preserve and maintain levels of security and confidentiality, an obligation from which the CONTRACTOR will be exempt upon delivery of said information to the CONTRACTING PARTY. The parties also declare and agree that given that the designing of the electronic identification card is part of an integral production process that implies dealing with trade secrets, the CONTRACTING PARTY will not be able to decide a direct contracting process with any of OTI ́s subcontractors for the acquisition of the additionally required electronic identification cards, since it is provided that a competitive selection process will be performed. The CONTRACTING PARTY also unconditionally and irrevocably accepts that if the new electronic identification cards are supplied by suppliers other than OTI, said identification cards must be previously qualified to be processed in the personalization systems used by the CONTRACTING PARTY. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/ Paulo Rodríguez Molina     | /s/ Diego Luis Rueda  Mosquera  |
|---------------------------------------------------------|-------------------------------------------|
| Ing. Paulo Rodríguez Molina                   | Ing. Diego Luis Rueda  Mosquera |
| DIRECTOR GENERAL                                        | ATTORNEY BY PROXY                         |
| DE REGISTRO CIVIL, IDENTIFICACION        | ON TRACK INNOVATIONS LTD.                 |
| Y CEDULACION DEL ECUADOR                           |                                      |
| THE CONTRACTING PARTY                    | THE CONTRACTOR                            |

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----

|   | a) | General Director of the General Directorate for Civil Registry, Identification and ID Card Issuing -  Mr. HECTOR PAULO RODRIGUEZ MOLINA; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Engineer Mr. DIEGO LUIS ALFONSO RUEDA MOSQUERA - empowered by Power of Attorney of On Track Innovations Ltd (“OTI”) to sign the Contract on behalf of OTI; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| No. | OBJECT                                                                                                                                                                                                                                                                                                                                                                                                  | CONTRACTING PROCEDURE | ESTIMATED DATE                            |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|-------------------------------------------|
| 1   | ACQUISITION OF **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**ELECTRONIC IDENTIFICATION CARDS                                                                                                                                                                                                      | DIRECT CONTRACTING    | November 11th 2009(contracting performed) |
| 2   | SUPPLY AND INTEGRATION AND MAINTENANCE SERVICES FOR THE COMPUTER SOLUTION AT A NATIONAL LEVEL OF THE TECHNOLOGY MODERNIZATION PROJECT OF THE GENERAL DIRECTORATE OF CIVIL REGISTRATION, IDENTIFICATION AND CARD ISSUANCE **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** electronic cards pending) | DIRECT CONTRACTING    | December 9th 2009                         |
| 3   | ACQUISITION OF 13,000,000 ELECTRONIC IDENTIFICATION CARDS                                                                                                                                                                                                                                                                                                                                               | COMPETITIVE PROCESS   | Starting the second quarter of 2010       |

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| Item                                                     | Day              | Time           |
|----------------------------------------------------------|------------------|----------------|
| Date of invitation                                       | Nov. 27th 2009   |           |
| Deadline for questions and clarifications                | Nov. 30th2009    |  4.00 pm  |
| Deadline for the submission of answers                   | December 1st2009 |  10.00 am |
| Deadline for the submission of Bid                       | Dec. 2nd 2009    |  09.00 am |
| Date of opening of Bids                                  | Dec. 2nd 2009    |  10.00 am |
| Deadline for the validation of errors (Art. 23 RGLOSNCP) | December 4th2009 |  4.00 pm  |
| Deadline for the evaluation of Bid                       | Dec. 7th 2009    |  6.00 pm  |
| Date of Contract Awarding (Estimate)                     | Dec. 8th 2009    |           |

|   | 1. | Answer questions and issue clarifications requested by the bidder, or even answer them automatically, without modifying the object of the contract or the reference budget. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Evaluating the bid of the invited company. |
|--------|----|--------------------------------------------|

|   | 3. | Submitting a reasoned report to the General Directorate with the expressed recommendation on the award of the contract or declaring the process void and null. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | The General Sub-director appointed by the supreme authority of the General Directorate of Civil Registry, Identification and Card Issuance, who will chair the Committee. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The Director of Technology Management of the General Directorate of Civil Registry, Identification and Card Issuance, or her delegate, and, |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Engineer Marjorie Valdiviezo, as professional related to the object of the contract. |
|--------|----|--------------------------------------------------------------------------------------|

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| 1. | Invitation to the bidder. |
|----|---------------------------|

| 2. | Questions and clarifications may be made by the bidder until 4.00 pm on Monday, November 30th, 2009, which should be answered by the contracting entity until 10 am on Tuesday, December 1st, 2009. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Submission of the physical bid containing the technical-economic proposal in accordance with the requirements of paragraph 6.1 of Chapter 6 of Section III of the Bidding specifications up to 9.00 am on Wednesday, December 2nd, 2009 at the offices of the General Directorate of Civil registry, Identification and Card Issuance, located at Av. Amazonas and Naciones Unidas, corner of La Previsora Building, Mezzanine in the city of Quito. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Opening of technical economic bid to be held one hour after the deadline for submission of the bid. |
|----|-----------------------------------------------------------------------------------------------------|

| 5. | Evaluation of the technical-economic bid by the Technical Committee. |
|----|----------------------------------------------------------------------|

| 6. | Resolution of Award or declaring the process null and void. |
|----|-------------------------------------------------------------|

| 7. | Notification of award. |
|----|------------------------|

| 8. | Signing of the contract. |
|----|--------------------------|

| 9. | Submission of guarantees demanded. |
|----|------------------------------------|

| 10. | Entering the website www.compraspublicas.com.ec. Once the emergency situation is overcome a report should be entered detailing the contracts entered ​​and the budget used, indicating the results and relevant information provided for in Article 13 of the General Regulations of the Organic Law of the National Public Procurement System, determining to that effect that the information, contained in Section V and in letters (f) through (p), inclusive, of Section 6.1. (Minimum Requirements) of Chapter 6 of Section III of the Bidding specifications that is considered confidential information. Also for the same purposes, the information contained in the Annexes of the contract to be signed is considered confidential information. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| REPUBLIC OF ECUADORGENERAL DIRECTORATE OF CIVIL REGISTRY,IDENTIFICATION AND CARD ISSUANCE | Civil RegistryIdentification and Card Issuanceof Ecuador |
|-------------------------------------------------------------------------------------------|----------------------------------------------------------|

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| TO:                         Atty. Oswaldo López V.DIRECTOR OF ORGANIZATIONAL DEVELOPMENT MANAGEMENT |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| FROM: | Ms. Nancy Bonilla YanezFINANCE DIRECTOR |
|-------|-----------------------------------------|

| SUBJECT: | BUDGET AVAILABILITY EXPANSION OF THE CIVIL REGISTRY TECHNOLOGY STRUCTURE |
|----------|--------------------------------------------------------------------------|

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|   | - | VALUE OF THE AWARDING: USD   27,990,777.00 (TWENTY SEVEN MILLION NINE HUNDRED NINETY THOUSAND SEVEN HUNDRED SEVENTY SEVEN AND 00/100 UNITED STATES DOLLARS, plus VAT for the SUPPLY AND INTEGRATION AND MAINTENANCE SERVICES FOR THE COMPUTER SOLUTION AT A NATIONAL LEVEL OF THE TECHNOLOGY MODERNIZATION PROJECT OF THE GENERAL DIRECTORATE OF CIVIL REGISTRATION, IDENTIFICATION AND CARD ISSUANCE. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | DEADLINE FOR THE DELIVERY OF THE CARDS:  In accordance with the conditions defined in the specifications, that is as follows: |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------|

| No. of CARDS                                                                                                                                         | DEADLINE FOR DELIVERY |
|------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|
| **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | MAY 2010              |
| **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | JUNE 2010             |

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|   | - | DEADLINE FOR THE SUPPLY:  In accordance with the conditions defined in the specifications and the bid submitted by OTI, that is as follows: |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| OFFICE                                                                          | DATE FOR INSTALLATION                | COMMENTS                                                                                                     |
|---------------------------------------------------------------------------------|--------------------------------------|--------------------------------------------------------------------------------------------------------------|
| Quito (one Office)                                                              | JANUARY 2010                         | The installation will be performed by the Contractor with the support of the staff of the Contracting party. |
| Guayaquil  (two Offices): One North and another one South of the city | First quarter of the year 2010  | The installation will be performed by the Contractor with the support of the staff of the Contracting party. |
| 17 (seventeen) Offices at a national level                                      | Until June 2010                      | The installation will be performed by the Contractor with the supervision of the Contracting party           |
| 16 (sixteen) Offices at a national level                                        | Until September 2010                 | The installation will be performed by the Contractor with the supervision of the Contracting party           |

|   | - | PAYMENT METHOD: |
|--------|---|-----------------|

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| Appendix C: Bill of Materials and Prices for the Expansion of the eID project |
|-------------------------------------------------------------------------------|

| Component                                   |   | Feature                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | Make   |   | Model                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Quantity |   | Price/Unit                                                                                                                                           |   | Total price                                                                                                                                          |
|---------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                        |   | Fixed Enrollment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | OTI    |   | CIDS 5038                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 440      |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                        |   | - Digital Camera + tripod & back screen- Signature pad with display- 4 x Fingerprint reader for enrolment- Data capturing SW + Fingerprint 1:1 Identification SW- Printer for certificates (Birth, Death, etc...) (Printer and Consumables supplied by the RC)- Finger classification- Image quality control to confirm image suitability for use in future 1:N Face Recognition system, and compliance to ICAO- 1D barcode reader (supplied by RC)- Workstation PC & Operating System (supplied by RC)- Including: One unit for the integration lab                                                                                                                                     |   |   |   | - SW- Canon SX **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**- Topaz Sig **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**- Cogent CS500e- Xerox 3117 (Supplied by RC)- 1D Barcode reader; Example: CipherLab 1000 (Supplied by RC)- PC & OS (Supplied by RC)  |   |     |   |                                                                                                                                                 |   |                                                                                                                                                 |
|                                        |   | Mobile Enrollment to be used in Urban area                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | OTI    |   | CIDS 5038M                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 49       |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
| Countrywide Enrollment Stations   |   | - Digital Camera + tripod & back screen- Signature pad with display- 4x Fingerprint reader for enrolment- Data capturing SW + Fingerprint 1:1 Identification SW- Multifunction Printer for certificates (Birth, Death, etc...) + Scanner (Printer and Consumables supplied by the RC)- Image quality control to confirm image suitability for use in future 1:N Face Recognition system, and compliance to ICAO- 1D barcode reader (supplied by RC)- Data encryption + Flash disk x2- Finger classification + Online/Offline operational mode- Business card scanner (Signature papers supplied by RC)- documents photo scanning- Notebook + Ruggedize suitcase- One unit for the integration lab |   |   |   | - SW- Canon SX **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**- Topaz Sig **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**- Cogent CS500i- 1D Barcode reader; Example: CipherLab 1000 (Supplied by RC)- Kingston 2GB- ATOM or R400 Notebook (HP or Similar)             |   |     |   |                                                                                                                                                 |   |                                                                                                                                                 |

| N0302180.XLS: BOM_EN | 1 of 9 |
|----------------------|--------|

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|                       |   | Mobile Enrollment to be used in Rural Area                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | OTI                      |   | CIDS 5038M                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 49     |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|----------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |   | - Digital Camera + tripod & back screen- Signature pad with display- 4x Fingerprint reader for enrolment- Data capturing SW + Fingerprint 1:1 Identification SW- Multifunction Printer for certificates (Birth, Death, etc...) + Scanner (Printer and Consumables supplied by the RC)- Image quality control to confirm image suitability for use in future 1:N Face Recognition system, and compliance to ICAO- 1D barcode reader (supplied by RC)- Data encryption + Flash disk x2- Finger classification + Online/Offline operational mode- Business card scanner (Signature papers supplied by RC)- Documents photo scanning- Notebook + Ruggedize suitcase |   |                     |   | - SW- Canon SX **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**- Topaz Sig**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**- Cogent CS500i- 1D Barcode reader; Example: CipherLab 1000 (Supplied by RC)- Kingston 2GB- ATOM or R400 Notebook (HP or Similar) |   |   |   |                                                                                                                                                 |   |                                                                                                                                                 |
|                       |   | Mobile Power Unit for mobile enrollment (supplied by RC)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Xpower                   |   | Powerpack1500                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 49     |   | $            -                                                                                |   | $            -                                                                           |
|                       |   | Mobile generator for mobile enrollment- (fuel supplied by the Customer)- (supplied by RC)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Champion Power Equipment |   | - Champ 2KW 2-Cycle Gas Powered Portable Generator (Supplied by RC)                                                                                                                                                                                                                                                                                                                                                                                                 |   | 98     |   | $            -                                                                                |   | $            -                                                                           |
|                       |   | Application forms for the mobile enrollment, (supplied by RC)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | OTI                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 0      |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | $            -                                                                           |
| BackOffice for all Offices |   | Workstations- Administration, Validation, Investigation- Upload station that received offline data- PC & Operating System (supplied by RC)- One unit for the integration lab                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | OTI                      |   | CIDS 5050- SW- PC & OS (Supplied by RC)                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 29     |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                       |   | Typing stations for the application forms- PC & Operating System (supplied by RC) + typing SW                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | OTI                      |   | CIDS 5021- SW- PC & OS (Supplied by RC)                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 132    |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                       |   | Desktop Card Thermal Transfer printer with computer for Quito Office- PC & Operating System (supplied by RC)- Printing SW                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | OTI                      |   | CIDS 5033- SW- Zebra P **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**- PC & OS (Supplied by RC)                                                                                                                                                                                                                                                           |   | 4      |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                       |   | Personalization Software module for Quito and SW upgrade for Guayaquil                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | OTI                      |   | Magna Personalization                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2      |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                       |   | Personalization Administration station- Administration SW- PC & Operating System (supplied by RC)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | OTI                      |   | CIDS 5051- SW- PC & OS (Supplied by RC)                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2      |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |

| N0302180.XLS: BOM_EN | 2 of 9 |
|----------------------|--------|

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|                        |   | PKI + CA for Quito                                                                                                                                                                                  |   | Safenet |   | ProtectServer                                                                                                                                                                              |   | 1      |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|-----------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |   | - CA for eID Personalization services- Licenses + professional Services- Servers, Integration, Infrastructure, Training, Documentation                                                              |   |    |   | External HSM                                                                                                                                                                               |   |   |   |                                                                                                                                                 |   |                                                                                                                                                 |
|                        |   | Chip Management System (CMS) + Inventory Management                                                                                                                                                 |   | OTI     |   | Magna Inventory/CMS                                                                                                                                                                        |   | 2      |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                        |   | - Enterprise license for 2 Centralized Offices (new SW for Quito and upgrade of the Guayaquil Office)                                                                                               |   |    |   |                                                                                                                                                                                       |   |   |   |                                                                                                                                                 |   |                                                                                                                                                 |
|                        |   | Chip Personalization Stations for Quito                                                                                                                                                             |   | OTI     |   | CIDS 5047                                                                                                                                                                                  |   | 4      |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
| Centralized Personalization |   | - Personalization SW- 1D Barcode reader (supplied by RC)- PC & Operating System (supplied by RC)- eID chip reader- Finger print - ANSI INCITS 378-2004 minutia creation                         |   |    |   | - SW- PC & OS (Supplied by RC)- OTI Saturn 6000- 1D Barcode; Example: Datalogic (Supplied by RC)                                                                                       |   |   |   |                                                                                                                                                 |   |                                                                                                                                                 |
|                        |   | Delivery Stations for Quito                                                                                                                                                                         |   | OTI     |   | CIDS 5046                                                                                                                                                                                  |   | 4      |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                        |   | - Delivery SW- Finger print scanner- 1D Barcode reader (supplied by RC)- PC & Operating System (supplied by RC)- eID chip reader                                                                |   |    |   | - SW- Finger print reader- PC & OS (Supplied by RC)- OTI Saturn 6000- 1D Barcode Cyfer1000 (Supplied by RC)                                                                            |   |   |   |                                                                                                                                                 |   |                                                                                                                                                 |
|                        |   | QA Stations for Quito                                                                                                                                                                               |   | OTI     |   | CIDS 5048                                                                                                                                                                                  |   | 4      |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                        |   | - Quality Assurance SW- 1D Barcode reader (supplied by RC)- PC & Operating System (supplied by RC)- eID chip reader, UV light, IPI lenses- Printer (Printer and Consumables supplied by the RC) |   |    |   | - SW- OTI Saturn 6000- 1D Barcode; Example: Datalogic (Supplied by RC)- Xerox 3117 (Supplied by RC)                                                                                        |   |   |   |                                                                                                                                                 |   |                                                                                                                                                 |
|                        |   | Desktop Card Thermal Transfer printer with computer                                                                                                                                                 |   | OTI     |   | CIDS 5033                                                                                                                                                                                  |   | 71     |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                        |   | - PC & Operating System (supplied by RC)- Printing SW- Included: One unit for the integration lab                                                                                               |   |    |   | - SW- P **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**- PC & OS (Supplied by RC) |   |   |   |                                                                                                                                                 |   |                                                                                                                                                 |
|                        |   | Office Server + SW                                                                                                                                                                                  |   | HP      |   | HP ML110 **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**                              |   | 34     |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | $1,021,360                                                                                                                                           |
|                        |   | - Storage, backup drive, standard edition Oracle Server                                                                                                                                             |   |    |   | HP LTO-1 tape drive Oracle 10g Standard Edition1                                                                                                                                           |   |   |   |                                                                                                                                                 |   |                                                                                                                                                 |
|                        |   |                                                                                                                                                                                                |   |    |   |                                                                                                                                                                                       |   |   |   |                                                                                                                                                 |   |                                                                                                                                                 |
|                        |   | Personalization Administration station                                                                                                                                                              |   | OTI     |   | CIDS 5053                                                                                                                                                                                  |   | 34     |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                        |   | - Administration SW- PC & Operating System (supplied by RC)                                                                                                                                     |   |    |   | - SW- PC & OS (Supplied by RC)                                                                                                                                                         |   |   |   |                                                                                                                                                 |   |                                                                                                                                                 |

| N0302180.XLS: BOM_EN | 3 of 9 |
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|                                   |   | Delivery Stations                                                                                                                                                                                                                                                                               |   | OTI             |   | CIDS 5046                                                                                                                                                                                                                  |   | 34         |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|----------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| De-Centralized Personalization Offices |   | - Delivery SW- Finger print scanner- 1D Barcode reader (supplied by RC)- PC & Operating System (supplied by RC)- eID chip reader                                                                                                                                                            |   |            |   | - SW- Finger print reader- 1D Barcode reader; Example: CipherLab 1000 (Supplied by RC)- OTI Saturn 6000- PC & OS (Supplied by RC)                                                                                      |   |       |   |                                                                                                                                                 |   |                                                                                                                                                 |
|                                   |   | Personalization Stations                                                                                                                                                                                                                                                                        |   | OTI             |   | CIDS 5047                                                                                                                                                                                                                  |   | 74         |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                   |   | - Personalization SW- 1D Barcode reader (supplied by RC)- PC & Operating System (supplied by RC)- HSM Plug- eID chip reader- Finger print - ANSI INCITS 378-2004 minutia creation                                                                                                           |   |            |   | - SW- PC & OS (Supplied by RC)- OTI Saturn 6000- 1D Barcode; Example: Datalogic (Supplied by RC)- Athena HSM                                                                                                           |   |       |   |                                                                                                                                                 |   |                                                                                                                                                 |
|                                   |   | QA Stations                                                                                                                                                                                                                                                                                     |   | OTI             |   | CIDS 5048                                                                                                                                                                                                                  |   | 74         |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                   |   | - Quality Assurance SW- 1D Barcode reader (supplied by RC)- PC & Operating System (supplied by RC)- eID chip reader, UV light, IPI lenses- Printer (Printer and Consumables supplied by the RC)                                                                                             |   |            |   | - SW- PC & OS (Supplied by RC)- OTI Saturn 6000- 1D Barcode Datalogic (Supplied by RC)- Xerox 3117 (Supplied by RC)                                                                                                    |   |       |   |                                                                                                                                                 |   |                                                                                                                                                 |
|                                   |   | Desktop Card Thermal Transfer printer with computer for Mobile stations                                                                                                                                                                                                                         |   | OTI             |   | CIDS 5033                                                                                                                                                                                                                  |   | 49         |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                              |   | - Notebook & Operating System (supplied by RC)- Security plug- Printing SW + Ruggedized case- Printer for Inscriptions + scanner (supplied by RC) + Ruggedized case                                                                                                                         |   |            |   | - SW- Notebook (Supplied by RC)- Zebra P **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**- Xerox 3117 (Supplied by RC) |   |       |   |                                                                                                                                                 |   |                                                                                                                                                 |
|                                   |   | Mobile Chip Personalization + QA + Delivery Station                                                                                                                                                                                                                                             |   | OTI             |   | CIDS 5049                                                                                                                                                                                                                  |   | 50         |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
| Rural Personalization                  |   | - Personalization SW + Quality Assurance SW- 1D Barcode reader (supplied by RC)- Laptop & Operating System (supplied by RC)- HSM plug + eID chip reader, UV light, IPI lenses- Finger print scanner- Finger print - ANSI INCITS 378-2004 minutia creation- One unit for the integration lab |   |            |   | - SW- OTI Saturn 6000- 1D Barcode Datalogic (Supplied by RC)- Notebook (Supplied by RC)- Athena HSM- Finger Print scanner                                                                                                  |   |       |   |                                                                                                                                                 |   |                                                                                                                                                 |
| AFIS for                               |   | 1:N Search engine- Matchers for 15,000,000 records- AFIS Redundancy capability                                                                                                                                                                                                                  |   | Cogent OTI |   | CAFIS Magna                                                                                                                                                                                                           |   | 15,000,000 |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
| Phase 2                                |   | Magna AFIS interface                                                                                                                                                                                                                                                                            |   | OTI             |   | Magna                                                                                                                                                                                                                      |   | 1          |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                   |   | Installation, Training, Assimilation, Documentation                                                                                                                                                                                                                                             |   |            |   |                                                                                                                                                                                                                       |   | 2.0        |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                   |   | Maintenance for the project duration after 1st year warranty                                                                                                                                                                                                                                    |   |            |   |                                                                                                                                                                                                                       |   | 1.5        |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |

| N0302180.XLS: BOM_EN | 4 of 9 |
|----------------------|--------|

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|                                            |   | MagnaTM - eID registry + RDBMS                                                                                                                                                                                                                                                            |   | OTI & Oracle |                              | Oracle 10g Standard Edition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 1                                         |                                      | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|-------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|-----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|-------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                            |   | - Magna Registry- Oracle data base licenses + Localization                                                                                                                                                                                                                                |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                      |                                      |                                                                                                                                                 |   |                                                                                                                                                 |
| Population Registry                             |   | Main and DRS Servers + Backup libraries & SW- Servers Cabinet + Storage                                                                                                                                                                                                               |   | HP               |                              | 4 * HP DL5 **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**4 * HP DL **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**2 * HP EVA **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**HP MSL20 **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**2 * Racks and accessories |   | 1                                         |                                      | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                            |   | Inscriptions to citizens (Provided by RC)                                                                                                                                                                                                                                                 |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 0                                         |                                      | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | $             -                                                                     |
|                                            |   | DBA Local support (man months)                                                                                                                                                                                                                                                            |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 30.0                                      |                                      | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
| Services                                        |   | SYS Admin Local support (man months)                                                                                                                                                                                                                                                      |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 30.0                                      |                                      | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                            |   | Annual system Local maintenance level 2 (x Years), including Magna                                                                                                                                                                                                                        |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2.5                                       |                                      | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                            |   | Annual system maintenance level 3 (x Years), including Magna                                                                                                                                                                                                                              |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2 2/3                                     |                                      | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                            |   | Integration with IntDB                                                                                                                                                                                                                                                                    |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 1                                         |                                      | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                            |   | Testing lab:                                                                                                                                                                                                                                                                              |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 1                                         |                                      | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
| General and   NRE (Non Recurring |   | a. Fix and mobile enrolment x1 (included above)b. admin station x1 (included above)c. printer station x1 (included above)d. All-in-one: Chip Personalization + QA + Delivery Station x1 (included above)- Local server for the testing environment- Integration, installation and testing |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                      |                                      |                                                                                                                                                 |   |                                                                                                                                                 |
| Expenses)                                       |   | Working compilation environment for the source code                                                                                                                                                                                                                                       |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 1                                         |                                      | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                            |   | Documentation (Spanish)                                                                                                                                                                                                                                                                   |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 1                                         |                                      | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                            |   | Installation systems into 3 Offices and supervision of other Offices                                                                                                                                                                                                                      |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                      |                                      |                                                                                                                                                 |   |                                                                                                                                                 |
|                                            |   | System Integration                                                                                                                                                                                                                                                                        |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                      |                                      |                                                                                                                                                 |   |                                                                                                                                                 |
|                                            |   | Magna - SA & DBA                                                                                                                                                                                                                                                                      |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                      |                                      |                                                                                                                                                 |   |                                                                                                                                                 |
|                                            |   | System Training supervisors and trainers                                                                                                                                                                                                                                                  |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                      |                                      |                                                                                                                                                 |   |                                                                                                                                                 |
|                                            |   | 3 x Office pre-Inspection                                                                                                                                                                                                                                                                 |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                      |                                      |                                                                                                                                                 |   |                                                                                                                                                 |
|                                            |   | System Acceptance Test Program                                                                                                                                                                                                                                                            |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                      |                                      |                                                                                                                                                 |   |                                                                                                                                                 |
|                                            |   | Integration Management & System Buildup                                                                                                                                                                                                                                               |   |             |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 1                                         |                                      | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                            |   |                                                                                                                                                                                                                                                                                      |   |             |                              | Total System Price WITHOUT VAT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                      | $     24,270,777 |
|                                            |   |                                                                                                                                                                                                                                                                                      |   |             |  Total System Price with VAT | 0%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $     24,270,777 |

| N0302180.XLS: BOM_EN | 5 of 9 |
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|   | (II) Cards Supply | eID base card set include (per 1 card base): |
|--------|-------------------|----------------------------------------------|

| Component                                                                    | Feature                                                                                                                                                                                                                         | Make     |              | Model                        |                                                                                                                                                 | Quantity                                                                                                                                             | Price/Unit                                                                                                                                           |                               | Total price                                                                                                                                          |
|------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|-------------------|------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| eID Base Card                                                                | ICAO 66KB Contactless Chip + HerculesTM Operating System                                                                                                                                                                        | OTI      |              | ST NR66Hercules TM for ePass |                                                                                                                                                 | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                               | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
| PET Base card- Security printing and features: Microtext, UV, OVI, Guilloche | OTI                                                                                                                                                                                                                             |     |              |                         | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                                                                                                                                                 |
| eID CardLaminate                                                             | Secured thin holographic laminate- Features such a text, guilloche, microtext, nanotext, animated images, laser images, which provide state of the art protection against forgery- Including 1 time setup and customized design |     |              |                         |                                                                                                                                                 | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                               | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                                                         |
|                                                                         |
|                                                                         |
|                                                                         |
| Personalization                                                              | Printer ink ribbons and cleaning consumables                                                                                                                                                                                    |     |              |                         |                                                                                                                                                 | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                               | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
| Special Features                                                             | Invisible Personal Information - IPI and Shadow Image                                                                                                                                                                           | Jura JSP |              | IPI                          |                                                                                                                                                 | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                               | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|                                                                         |                                                                                                                                                                                                                            |     | Total without VAT |                         |                                                                                                                                                 | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                                                                                                                                                 | $    3,720,000 |
|                                                                         |                                                                                                                                                                                                                            |     | Total with VAT    |                         | 0%                                                                                                                                                   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                                                                                                                                                 | $    3,720,000 |
|                                                                         |                                                                                                                                                                                                                            |     |              |                         |                                                                                                                                                 |                                                                                                                                                 |
|                                                                         | TOTAL EXPANSION PRICE WITHOUT VAT                                                                                                                                                                                               |     |              |                         |                                                                                                                                                 | $  27,990,777                                                                                                                              |

| 1      |   | Guayaquil should increase its daily cards personalization capacity to a minimum 1,500 /day                                                                                                                        |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2      |   | Expansion plan                                                                                                                                                                                                    |
|   |   | Establish additional 2 Offices in the Guayaquil region + 1 Quito till the end of 2009 (each with min. capacity of 800/day)                                                                                        |
|   |   | All enrollment and personalization Offices should be installed during 2010 to achieve the expected capacity.                                                                                                      |
|   |   | It is assumed that 50% of the capacity will be achieved during 2010.                                                                                                                                              |
| 3      |   | The personalization Offices will work in first shift mainly to deliver the cards to the citizens while they wait.                                                                                                 |
|   |   | those Offices will work on the 2nd shift to produce cards for applications that came from remote Offices                                                                                                          |
| 4      |   | Cards Personalization will be done in 36 Offices.                                                                                                                                                                 |
| 5      |   | The calculation for the printers quantity: minimum 2 per Office and also the printers quantity that were already in Guayaquil - are reduced. Those printers should be distributed within the installation period. |
| 6      |   | Each mobile station should have (optional) battery and small generator for the rural area.                                                                                                                        |
| 7      |   | For the rural area exercise, Customer will provide:                                                                                                                                                               |
|   |   | 4x4 truck with enough space to carry: mobile stations & printers, generator, battery, fuel, food, personnel private equipment                                                                                 |
|   |   | trained team that will consist on driver, guide, 2 operators and 2 attendants,                                                                                                                                    |
| 8      |   | Since the Mobile station will provide the ID card to the applicant, it will not be equipped with the receipt printer                                                                                              |
| 9      |   | Design enclosure for the fix station will be performed by Customer with the advice and help of the Company.                                                                                                       |
| 10     |   | Civilian AFIS characteristics: Please refer to Attachment 1.                                                                                                                                                      |
| 11     |   | AFIS Alternatives: Please refer to Attachment 1.                                                                                                                                                                  |

| N0302180.XLS: BOM_EN | 6 of 9 |
|----------------------|-------------|

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| 12 |   | It is possible, to shift budget between BOM items and add or remove BOM items as long as the value of the contract remains the same.                                  |
|----|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13 |   | Shipments of Cards will be per the milestones defined in Appendix D - Table 1.                                                                                        |
| 14 |   | Customer will provide the backup media for the backup drives.                                                                                                         |
| 15 |   | Each equipment that RC will buy not via OTI, but OTI need to integrate, the RC should provide 4 units to the Supplier for testing, integration and support.           |
| 16 |   | Each equipment that will be provided through RC for the offices (such as PCs, printers, etc.) will have to be provided in accordance with the model suggested by OTI. |

| 1      |   | Prices are CIF Ecuador port, include: insurance, shipment                                          |       |                     |
|--------|--------|----------------------------------------------------------------------------------------------------|------------|--------------------------|
| 2      |   | Prices do NOT include any tax for the provided Goods. Tax is included only for the local Services. |
| 3      |   | Company will train the trainers that will train the end-users.                                     |       |                     |
| 4      |   | Project enrolment and personalization Length:                                                      | 30         | months                   |
| 5      |   | Quantities of the supplied units were calculated during the Project Length for:                    | 15,000,000 | applicants for new eID's |
| 6      |   | Company reserves the right to provide similar or better make and model for equipment               |       |                     |
| 7      |   | Customer will provide system operation (Human resources, offices, electricity, guards etc)         |       |                     |
| 8      |   | Customer will provide infrastructure such as: offices, construction, furniture.                    |       |                     |
|   |   | Power backup (UPS & Generator), VPN, A/C, fire protection.                                     |       |                     |

| 9      |   | Customer will provide networking & communications in all Offices and between Offices (capture and central Offices)                                                                                                                                                                                                                 |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10     |   | Application forms for enrollment will be designed for the Customer. Company will customize the enrollment SW accordingly.                                                                                                                                                                                                              |
| 11     |   | All PC's and their operating systems for the various stations will be supplied by the RC.                                                                                                                                                                                                                                              |
| 12     |   | Integration of the PC's with the system will be performed during the installation period.                                                                                                                                                                                                                                              |
| 13     |   | Work at the back office of the central Offices planned for 2 shifts.                                                                                                                                                                                                                                                                   |
| 14     |   | The Offices MUST have good and reliable communication between them with bandwidth defined by the Company.                                                                                                                                                                                                                              |
| 15     |   | SW modules to accommodate national distribution shall be supplied during the 2nd quarter of the national deployment.                                                                                                                                                                                                                   |
| 16     |   | Following items will be supplied later in Q2/2010:                                                                                                                                                                                                                                                                                     |
|   |   | Personalization & Inventory Software module                                                                                                                                                                                                                                                                                        |
|   |   | PKI + CA; Distributed Magna and Servers                                                                                                                                                                                                                                                                                                |
|   |   | Chip Management System (CMS)                                                                                                                                                                                                                                                                                                           |
| 17     |   | All received payments will be in USA Dollar.                                                                                                                                                                                                                                                                                           |
| 18     |   | Orders will be processed after receiving down payment                                                                                                                                                                                                                                                                                  |
| 19     |   | Completion of the payment for a specific order shall be carried out no later than 2 weeks after ATP/delivery.                                                                                                                                                                                                                          |
| 20     |   | For the avoidance of doubt, it is clarified that OTI supplies permits and licenses, including for software, use of the Magna System and source codes (and modifications thereof) only to goods and services supplied under a specific agreement. Any use of such permits or licenses outside the scope of an agreement is not allowed. |
| 21     |   | eID kit includes 10 year warrantee for the card. See attached card warrantee.                                                                                                                                                                                                                                                          |
| 22     |   | Parameters                                                                                                                                                                                                                                                                                                                             |

|   | System Capacity  | 15,000,000 | Records   |   |
|--------|------------------|------------|-----------|--------|
|   | Project Duration | 30         | Months    |   |
|   | Ramp up time     | 6          | Months    |   |
|   | Working Days     | 20         | Per month |   |

| N0302180.XLS: BOM_EN | 7 of 9 |
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| Number of new applicants processed per day                              | 25,000 | Applicants    |   |
|-------------------------------------------------------------------------|--------|---------------|--------|
| No. Of Shifts for enrolment purposes                                    | 1      | Per day       |   |
| No. Of Shifts for card personalization purposes                         | 2      | Per day       |   |
| No. Of Hours                                                            | 8      | Net Per shift |   |
| Personalization efficiency                                              | 95%    | 0             |   |
| Capturing time per applicant at fix site                                | 12.0   | Min           |   |
| Capturing time per applicant at mobile station using application forms  | 4.0    | Min           |   |
| # of Capturing Sites                                                    | 36     | Min. Fix      |   |
| Personalization_Sites                                                   | 36     | 0             |   |
| Central_Sites                                                           | 2      | 0             |   |
| Ratio of # of enrollment stations per scanner                           | 5      | 0             |   |
| Ratio of enrollments in urban area                                      | 80%    | 12,000,000    |   |
| Ratio of enrollments in urban area that may need to use mobile stations | 20%    | 3,000,000     |   |
| Estimated QTY of people living in the rural area                        | 20%    | 3,000,000     |   |

| Description                                                                                  | Contract  |   Guarantee |   | Payment Milestone with VAT |
|----------------------------------------------------------------------------------------------|-----------|------------------|--------|----------------------------|
|                                                                                         | Reduction |   Reduction |   |                       |
| System infrastructure Agreement Guarantee to be open by the Company                          | 5%        |             |   |                       |   | $1,213,539 |
| Company issue an Advance Payment Gurantee to be reduced per the following milestones:        |      | 40%              |   |                       |   | $9,708,311 |
| PM1: Customer pay Advance Payment                                                            |      | 40%              |   |                       |   | $9,708,311 |
| AM1: System Requirements Document                                                            | 10%       |             |   | 25.0%                      |   |   | $      2,427,078 |
| AM2: System Design Document                                                                  | 10%       |             |   | 25.0%                      |   |   | $      2,427,078 |
| AM3: Quito Office ready for Enrollment - system is installed and operational                 | 10%       |             |   | 25.0%                      |   |   | $      2,427,078 |
| AM4: Delivery to Ecuador Custom of the first 3 Offices equipment (1x Quito + 2x Guayaquil)   | 10%       |             |   | 25.0%                      |   |   | $      2,427,078 |
| Company issue a Payment Guarantee to be reduced per the following milestones:                |      | 60%              |   |                       |   | $14,562,466 |
| PM2: Customer Payment                                                                        |      | 60%              |   |                       |   | $14,562,466 |
| AM5: First 3 Offices ready for operation                                                     | 10.0%     |             |   | 16.7%                      |   |   | $      2,427,078 |
| AM6: Delivery to Ecuador Custom of the main 10 Offices system                                | 15.0%     |             |   | 25.00%                     |   |   | $      3,640,617 |
| AM7: Delivery to Ecuador Custom of the main 12 Offices system                                | 15.0%     |             |   | 25.00%                     |   |   | $      3,640,617 |
| AM8: Delivery to Ecuador Custom the balance of Offices system per quantity defined in Append | 15.0%     |             |   | 25.00%                     |   |   | $      3,640,617 |
| AM9: Final delivery                                                                          | 4.0%      |             |   | 6.67%                      |   |   | $         970,831 |
| AM10: Delivery of CD with the Source Code                                                    | 1.0%      |             |   | 1.67%                      |   |   | $         242,708 |
|                                                                                         | 100%      |             | 100%   |                       |   | $24,270,777 | $    24,270,777 |

| N0302180.XLS: BOM_EN | 8 of 9 |
|----------------------|-------------|

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| Description                                                                                         | Batch                                                                                                                                                |   Guarantee |   | Payment Milestone with IVA |
|-----------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|--------|----------------------------|
|                                                                                                | Size                                                                                                                                                 |   Reduction |   |                       |
| Cards Supply Agreement Guarantee to be open by the Company                                          | 5%                                                                                                                                                   |             |   |                       |   | $186,000 |
| G1: Guarantee to be provided by the Company and to be reduced per the following milestones:         |                                                                                                                                                 | 40%              |   |                       |   | $1,488,000 |
| P1: Customer Advance Payment                                                                        |                                                                                                                                                 | 40%              |   |                       |   | $1,488,000 |
| Batch 1                                                                                             | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |             |   | 100.0%                     |   |   | $   1,488,000 |
| G2: Company Guarantee to be provided by the Company and to be reduced per the following milestones: |                                                                                                                                                 | 60%              |   |                       |   | $2,232,000 |
| P2: Payment to be paid by the Customer                                                              |                                                                                                                                                 | 60%              |   |                       |   | $2,232,000 |
| Batch 2                                                                                             | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |             |   | 100.0%                     |   |   | $   2,232,000 |
|                                                                                                | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |             | 100%   |                       |   | $3,720,000 | $   3,720,000 |

| N0302180.XLS: BOM_EN | 9 of 9 |
|----------------------|-------------|

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| Department: | GUARANTEE DEPT. |
|-------------|-----------------|

| Ref: | (OURS and the foreign bank’s) |
|------|-------------------------------------|

| Date: | .................. |
|-------|--------------------|

|   | 1) | The AGREEMENT between Supplier and the Beneficiary is current; the Supplier has breached or has delayed unjustifiably in the fulfillment of its contractual obligations, in the terms stipulated in the contract; and, the Beneficiary has made complete payment of the advance payment stipulated in the Agreement; and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | The Supplier was notified in writing that he was granted a ten days term to justify the delay or solve the non-compliance, and the Supplier did not respond to the requirement of the Beneficiary, reason for which this guarantee is executed. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Department: | GUARANTEE DEPT. |
|-------------|-----------------|

| Ref: | (OURS and the foreign bank’s) |
|------|-------------------------------------|

| Date: | ___________ |
|-------|-------------|

|   | 1) | The AGREEMENT between Supplier and the Beneficiary is current and the Beneficiary had paid the corresponding advance payment in the amount of USD 1,488,000 (One Million Four Hundred and Eighty Eight Thousand) Dollars of the United States of America), to the Supplier account no. 246100 with Bank Leumi Le Israel B.M. branch no. 876 with ref. to this guarantee number, and; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | The Supplier was notified in writing with the grant of a term of ten days to justify the delay or solve the non-compliance, and the Supplier did not respond to the requirement of the Beneficiary, reason for which this guarantee is executed. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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