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| 1.1. | The Parties agree that during the term of this Agreement and subject to the terms and conditions hereof: (i) SMARTRAC shall be OTI ́s only and exclusive supplier for Exclusive Products; and (ii) OTI shall have the right to purchase from SMARTRAC and SMARTRAC agrees to sell to OTI Products which are not Exclusive Products. |
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| 1.2. | SMARTRAC hereby acknowledges that SMARTRAC’s performance of this Agreement and becoming an available, reliable and cooperative supplier of the Products to OTI is a fundamental element in OTI's agreement to cease its inlay production operation and sell the Assets to SMARTRAC as well as to OTI’s agreement for the other terms of the Asset Purchase Agreement between the parties thereto. SMARTRAC undertakes to produce and sell the Products to OTI for the term of this Agreement and any extension hereof, and to implement any and all measures deemed reasonably necessary to ensure such supply. |
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| 1.3. | Upon the execution and delivery of this Agreement by the Parties, SMARTRAC shall designate a key account manager to properly support the contractual relationship with OTI created by this Agreement. |
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| 1.4. | Notwithstanding anything to the contrary herein, until the shut-down of MCT (Shenzhen) pursuant to the APA, OTI shall have the right to complete existing orders-in-progress and other orders as specified in the APA and such actions shall not be deemed in any manner a breach of the terms of this Agreement. |
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| 2.1 | This Agreement only applies to Products, the specifications of which have been completed pursuant to the Specification Process (“Specification Process”) as reflected in Attachment 2.1. The Parties shall enter into the Specification Process based on OTI's request for each Product, the specification for which does not exist. |
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| 2.2 | SMARTRAC hereby undertakes to sell to OTI all Exclusive Products as reasonably specified by OTI, and OTI agrees to buy, all Exclusive Products exclusively from SMARTRAC and OTI shall not buy Exclusive Products from any Third Party, all subject to the terms of this Agreement. For the avoidance of doubts, notwithstanding anything to the contrary herein, it is hereby clarified that a Product other than Exclusive Product shall not be subject to the exclusivity provisions of this Agreement. |
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| 2.3 | Without derogating from SMARTRAC's obligation to supply Exclusive Products to OTI under this Agreement, the obligation of OTI to buy Exclusive Products exclusively from SMARTRAC shall not apply and OTI shall have the right to purchase Exclusive Products from another supplier in the following situations: (a) in the event the specification of a Exclusive Product is not agreed between the Parties within the timeframe specified in the Specification Process, due to a delay caused by SMARTRAC, in which case OTI shall have the right to purchase the Exclusive Products from a Third Party, until the specification is agreed by the Parties and SMARTRAC is ready to manufacture and sell such Exclusive Products; or (b) (i) SMARTRAC is not able to manufacture the Exclusive Products; or (ii) SMARTRAC does not provide a quotation for Standard Products within three Working Days from receipt of the request for quotation from OTI; or (iii) SMARTRAC does not provide a quotation for non-Standard Products within five Working Days from receipt of the request for quotation from OTI; or (iv) SMARTRAC is not able to supply the Exclusive Products in accordance with the time schedule requested by OTI; or (v) SMARTRAC does not confirm OTI’s order within three or five Working Days (as set forth in Section 3.3 below); or (c) in the event that the purchasing of the Exclusive Product by OTI is made for a customer that does not agree to SMARTRAC being the Exclusive Product manufacturer, provided that OTI made best commercial efforts in good faith to cause the customer to agree to have SMARTRAC as the Exclusive Product manufacturer. |
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| 2.4 | SMARTRAC may, within its sole discretion, develop and improve the Exclusive Product and shall inform OTI regularly and no later than once a calendar quarter about any such future Exclusive Product that is or has been developed. |
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| 2.5 | With respect to Products other than Exclusive Products, OTI may request a quotation from SMARTRAC for the manufacture of said products with the intention of SMARTRAC becoming a preferred supplier of OTI.  However OTI shall not be obligated to purchase such products from SMARTRAC and may purchase such products from other suppliers in its sole discretion. |
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| 2.6 | OTI shall be entitled to purchase from SMARTRAC and SMARTRAC undertakes to sell to OTI all SMARTRAC Products, and SMARTRAC shall offer OTI said SMARTRAC Products under the terms of this Agreement. An overview of the current SMARTRAC Products is attached as Attachment 2.6. In addition to the overview, Attachment 2.6 includes a complete list of all SMARTRAC Products which relate to the "Security Segment" as reflected in the said attachment. |
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| 2.7 | Cards; Mastercard and Visa Products |
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|   | 2.7.1 | SMARTRAC hereby undertakes to supply OTI with Cards. The Cards, their specifications, consistency and conformance shall be defined from time to time by OTI. If OTI changes any specification or consistency or conformance standard, OTI shall give SMARTRAC a period of three weeks to make changes in its manufacturing processes to effect such change(s). Such period will be extended if new machinery or raw materials is required for the production of the Cards. |
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|   | 2.7.2 | SMARTRAC is entitled to use subcontractors to manufacture the Cards, provided that (i) any such subcontractor is approved by OTI in writing prior to the engagement by SMARTRAC of such sub-contractor, such approval not to be unreasonably withheld; and (ii) SMARTRAC maintains full responsibility to OTI for the performance of any such subcontractor in accordance with the terms of this Agreement. OTI shall provide aforementioned approval, licenses, production and process know-how that is required for SMARTRAC to be able to manufacture the Cards within six weeks (excluding the qualification period) before the first issuance of an order for the Cards. OTI shall warrant that the provided know how would fit for the intended purpose. Promptly after the execution and delivery of this Agreement, SMARTRAC shall send, at its own expense, a team of SMARTRAC's employees to MCT (Shenzhen)’s manufacturing site in China for training by MCT (Shenzhen) in the production process and know-how relevant to the production of Cards. Such know-how shall remain OTI's proprietary information and will be treated by SMARTRAC as confidential information given for the sole purpose of production of Cards by SMARTRAC for OTI. SMARTRAC shall not use such proprietary know-how and information for any purpose other than the production of Cards for OTI, with the exception of know-how that is already known to SMARTRAC (and can be proven by SMARTRAC by satisfactory evidence) or is publicly available. |
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|   | 2.7.3 | SMARTRAC hereby undertakes to supply OTI with MasterCard certified and Visa certified products upon explicit request by OTI. SMARTRAC hereby undertakes to obtain MasterCard and Visa certification for physical security. In the event additional certifications is required to provide OTI with MasterCard and/or Visa certified products, SMARTRAC shall have the right to outsource such project in coordination with OTI in accordance with Section 2.7.2 above, but shall remain obligated towards OTI. |
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| 2.8 | OTI Customer Specific Products |
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|   | 2.8.1 | SMARTRAC hereby undertakes to supply OTI Customer Specific Products as listed in Attachment 2.8.1 as well as future OTI Customer Specific Products. |
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|   | 2.8.2 | SMARTRAC and OTI hereby undertake to negotiate in good faith an agreement pursuant to which SMARTRAC will supply OTI Customer Specific Products to OTI on a case-by-case basis with a perspective to having better pricing for OTI than the prices specified in Section 4.4 below. For avoidance of doubt, the know-how required for the production of these OTI Customer Specific Products shall be licensed on a non-exclusive basis by OTI to SMARTRAC for the sole and limited purpose of the production of OTI Customer Specific Products for OTI. Such know how (as well as other Intellectual Property Rights related to OTI Customer Specific Products) shall remain the sole property of OTI and SMARTRAC shall not make any use in such knowledge, other than for the purpose of producing OTI Customer Specific Products for OTI and SMARTRAC will treat such knowledge as confidential information given for the said sole purpose, with the exception of know-how that is already known to SMARTRAC (and can be proven by SMARTRAC by written evidence) or is publicly available. |
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|   | 2.8.3 | Without granting exclusivity to OTI, SMARTRAC shall give OTI in addition to no more than one other customer of SMARTRAC the first option to negotiate a supply contract with SMARTRAC regarding any new Product not exclusively designed and developed for a single customer or a single project, or both, developed by SMARTRAC during the term of this Agreement. |
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| 3.1 | The terms and conditions of purchase and delivery of Products supplied by SMARTRAC to OTI are governed by this Agreement. |
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| 3.2 | Deliveries shall be based on a Purchase Order placed by OTI and confirmed in writing by SMARTRAC. Each Purchase Order, once confirmed by SMARTRAC, shall be deemed to incorporate the terms and conditions of this Agreement, as this Agreement may be amended from time to time.  In the event of a conflict between any of the terms of this Agreement and the terms expressly set forth in both a Purchase Order and the related written confirmation, such express terms set forth in the Purchase Order and the related written confirmation shall supersede and shall govern the conflicting term hereof for the specific Purchase Order only. |
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| 3.3 | SMARTRAC shall confirm in writing Purchase Orders for Standard Products within three Working Days from the date of receipt of each Purchase Order from OTI and within five Working Days for non-Standard Products from date of receipt of a Purchase Order. Only after written confirmation of a Purchase Order (“Order Confirmation”) by SMARTRAC any such Purchase Order shall be binding on SMARTRAC. |
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| 3.4 | During the first five Working Days of each month OTI shall provide SMARTRAC with a three months forecast of OTI orders for Products covering the three consecutive months following the month in which the forecast is delivered to SMARTRAC. The forecast for the first month shall be 50% binding upon the Parties (i.e, OTI shall be obligated to order not less than 50% of the Products forecasted and SMARTRAC shall have the obligation to deliver up to 100% of the Products, if so requested by OTI) on a per-Product-basis and the forecast for the next two months shall not be binding and shall be provided for information purposes only. SMARTRAC shall not be obliged to confirm but will use best efforts to confirm a Purchase Order from OTI, the volume of which is more than 500,000 units per month, and to which OTI has not delivered a written forecast at least two months in advance. |
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| 3.5 | Unless otherwise agreed in writing, all deliveries of SMARTRAC are EXW (Incoterms 2000) from the delivering SMARTRAC entity. The pricing pursuant to Section 4 is based on EXW. All other delivery terms on the basis of INCOTERMS 2000 shall be made available to OTI upon request, provided that OTI pays the additional related costs of other INCOTERMS 2000 terms in comparison to EXW. The Products shall be delivered to the site named in the Purchase Order. SMARTRAC shall not make any profit on the additional costs or logistics. |
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| 3.6 | Upon request of OTI, SMARTRAC shall deliver the Cards pursuant to Section 2.7 directly to OTI’s customer and use OTI packaging. All additional costs associated with such delivery in addition excess to of the costs of the Cards (which already include shipping and adequate packaging costs) shall be borne by OTI, and SMARTRAC shall not make any profit for its service. |
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| 3.7 | Lead Times |
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|                                                      | Number of units (thousand units)                                          | Lead Time                                                                                                                 |
|-----------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
| Sample Product                                       | <1                                                                | 7 Working Days                                                                                                       |
| Standard Products                                         | < 500                                                        | 2 weeks (if forecasted)3 weeks (if not forecasted)                                                                        |
| Standard Products                                         | > 500 ; volumes exceeding one million will be negotiated in good faith | 3 weeks (if forecasted)4 weeks (if not forecasted)                                                                   |
| Non Standard Products & OTI CustomerSpecific Products |                                                                      | To be agreed on order per order – OTI to have preferred production status (main factor being lead time of material) |

|   | On the first Working Day following the Purchase Order confirmation by SMARTRAC, this specific Purchase Order can be increased one-fifth (20%) by OTI. SMARTAC shall have the right to reject such 20% volume increase only for reasons of materials required to produce the Products being unavailable. |
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| 3.8 | OTI shall not have the right to cancel a Purchase Order which has been formally confirmed by SMARTRAC. However, OTI has the right to postpone without penalty the predefined delivery time of Products subject to a Purchase Order and order confirmation, but not for more than three consecutive months and prior to the first shipment under the Purchase Order. |
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| 3.9 | SMARTRAC acknowledges that time is of the essence in the performance of all orders. Without releasing SMARTRAC from its obligation to meet the delivery dates set forth above, if delivery dates for Products cannot be met, then without derogating from OTI's right to remedies in such event, as set forth in Section 7 below, SMARTRAC shall notify OTI as promptly as possible but in any event not less than two Working Days prior to the delivery date most recently agreed upon, of the earliest possible date for delivery of the Products. |
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| 3.10 | If SMARTRAC fails to meet a delivery date, SMARTRAC shall pay to OTI a penalty of two per cent (2%) of the SMARTRAC selling price of the Products in the delayed shipment covered by the relevant Purchase Order per each period of five Working Days of delay from the last mutually agreed upon delivery date with a limitation of ten percent (10%). The payment of the penalty shall not release SMARTRAC from fulfilling its obligations under any Purchase Order. The Parties agree that any such penalties are intended to reflect the lower value of the delivery service level rendered by SMARTRAC and by no means are intended to limit OTI's right to additional remedy (if any), provided under Section 7 below. |
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| 3.11 | Unless otherwise requested by OTI, the Production Yield of the Standard Products and non-Standard Products existing as of the date hereof shall be ninety-nine percent (99%) per delivery when memory chips are used and ninety-seven point five percent (97.5%) when microprocessor chips are used. The Production Yield for future Products shall not be less than market standards. If the Production Yield set forth herein is not met, OTI shall be entitled to a compensation from SMARTRAC equal to the cost (a) of the chip and/or (b) of the chip module and/or (c) of the material used in the Products that failed to meet the Production Yield. Such compensation shall be OTI's sole remedy in such event. SMARTRAC undertakes to pay said compensation without delay, and in any event within 30 days of demand by OTI. SMARTRAC shall manage the defective modules as directed by OTI. No rework for microprocessor modules is authorized by OTI. |
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| 4.1 | Pricing for e-passport and card-related products that are SMARTRAC Products will be according to the following rules: |
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|   | 4.1.1 | Regarding any e-passport and card-related products to the extent they are sold and used in a Patent Protected Country (i.e., exclusive of sales of such e-passport and card-related products in non-Patent Protected Countries): |
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|   | 4.1.1.1 | For the first 2.5 million units per calendar year (500,000 with respect to e-passport related-products and 2 million with respect to card-related products), OTI shall receive the OTI special price for such products (without regard to amounts ordered); |
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|   | 4.1.1.2 | For any sales in excess of the 2.5 million per calendar year as described in 4.1.1.1 above, OTI shall receive the best price within the sale volume bracket (for total Purchase Orders confirmed by SMARTRAC during any calendar year for the said product and without considering the initial 2.5 million sales for the purpose of applying the respective price range). In any case and without relevance to the amount ordered, the starting price for all e-passport and card-related products sold pursuant to this Section 4.1.1.2 shall be according to the volume bracket that starts at 1 million units in the price list, or the immediate bracket above 1 million units, if a 1 million bracket does not exist (or higher, according to the amount ordered). |
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|   | 4.1.2 | Regarding any e-passport and card-related products to the extent it is sold and used in a Non Patent Protected Country (i.e., exclusive of sales of such e-passport and card-related products in a Patent Protected Countries): |
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|   | 4.1.2.1 | For card-related products, which are not national identification card related products (those national identification card related products are covered under Section 4.1.2.3 below), SMARTRAC’s pricing for such products sold in or for use in non-Patent Protected Countries shall be adopted, with best price per country being used in situations involving a local project in which the customer is not entitled to export said products from such non-Patent Protected Country. SMARTRAC shall have the right and shall use its best effort to assign its manufacturing obligation with respect to any such card-related products to one or more of its production/manufacturing partners. OTI shall adequately participate (without incurring costs) in any potential cost saving with respect to the contract assignments. |
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|   | 4.1.2.2 | For an e-passport related products, which requires production solely in highly secured production facilities, SMARTRAC can only provide single project pricing, which shall be based on the price mechanism set forth in Section 4.1.1. |
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|   | 4.1.2.3 | For a national identification card related product, the Parties shall align the pricing country by country. With respect to any such national identification card related product that has no security feature, no patent or other special feature (e.g., do not use special material for its manufacture), SMARTRAC shall have the right and shall use its best effort, subject to OTI’s approval, which shall not be unreasonably withheld, to assign its manufacturing obligation with respect to any such product to one or more of its production/manufacturing partners. OTI shall adequately participate (without incurring costs) in any potential cost saving with respect to the contract assignments. |
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|   | 4.1.3 | Price list according to Section 4.1 is set forth in Attachment 4.1. |
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| 4.2 | OTI's purchase prices for SMARTRAC Products, other than those mentioned in Section 4.1 above, shall be agreed upon on a case by case basis. |
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| 4.3 | OTI's purchase prices in accordance with the mechanism set forth in Section 4.1 and 4.2 are agreed to be the maximum prices applicable for the term of this Agreement and any future extension thereof. The Parties shall schedule a meeting in November of each year to attempt in good faith to negotiate purchase prices. The negotiations inter alia shall consider the annual forecast per Product provided by OTI and the adjustment of prices according to increases in costs of raw materials for SMARTRAC over a period of three consecutive months. No upward adjustment in the prices shall be made other than (i) adjustment as a result of increase in the cost of raw materials provided that SMARTRAC shall not be entitled to any margins on these costs, and (ii) US Dollar/Euro exchange rates as mentioned in SMARTRAC’S price lists. |
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| 4.4 | OTI’s purchase price for the following products shall be calculated on the basis of **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**: (a) Dual Interface Products; (b) Cards; and (c) OTI Customer Specific Products. |
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| 4.5 | Upon OTI's request, SMARTRAC shall supply OTI with chips and chip modules. OTI's prices for chip and chip modules shall be **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**. |
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| 4.6 | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**. |
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| 4.7 | During the term of this Agreement, SMARTRAC shall provide OTI with an overall initial credit limit of Euro 1,000,000.00 (One Million Euros). The Parties agree to raise this credit limit from time to time, taking into consideration the growth and development of the business conducted by the Parties. |
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| 4.8 | OTI shall pay amounts up to Euro 500,000.00 (Five Hundred Thousand Euros) due to SMARTRAC for Products sold to OTI on the 20th calendar day of the month following sixty calendar days from the latest of (i) the date of receipt the invoice from SMARTRAC, or (ii) delivery of Products (based on ex-works) for which such amounts are due. |
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| 4.9 | In the event that OTI increases its credit line to Gemalto to an amount in excess of Five Hundred Thousand Euros, SMARTRAC will increase its credit line to OTI for that customer of OTI by the same amount respectively, but under no circumstances will the total credit limit granted by SMARTRAC to OTI exceed the maximum credit line provided for in Section 4.7 above. |
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| 4.10 | Amounts due to SMARTRAC by OTI that are not covered by the foregoing provisions and that exceed Five Hundred Thousand Euros shall be paid to SMARTRAC by OTI within sixty calendar days from the latest of (a) the date of receiving an invoice from SMARTRAC or (b) delivery of Products for which such amounts are due. In any case OTI shall confirm the invoice within 4 Working Days of receipt. |
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| 4.11 | In the event that (a) OTI is late with three payments within any six months period and has not cured such default within five Working Days after receipt of written notice from SMARTRAC, or (b) a certified public accounting firm providing written opinion reasonably questions OTI’s ability to continue as a going concern, SMARTRAC may modify the credit limit under this Section 4 in its sole discretion. Upon curing the default or as soon as OTI is able to continue as a going concern according to a written opinion of certified public accounting firm, OTI shall be entitled to credit line of Euro 1,000,000.00 as specified in Section 4.7 above. |
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| 4.12 | SMARTRAC’s prices to OTI do not include any national, state or local sales, use, value-added or other taxes, customs duties or similar charges or governmental fees which SMARTRAC may be required to pay or collect upon the sale or delivery of Products or upon collection of the sales price. Should any such tax or levy be made on sales of Products to OTI, OTI agrees to promptly pay same and indemnify SMARTRAC for any claim for such tax or levy demanded. |
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| 5.1. | Based on the forecast of OTI, SMARTRAC shall maintain a Safety Stock for the production of Products that is reasonably calculated to provide safety against any delay in production of Products that might result from failure to have such Safety Stocks on hand and immediately available. OTI shall periodically offer its suggestions to SMARTRAC regarding the quantities of such Safety Stocks that OTI believes SMARTRAC should maintain, and SMARTRAC shall respond to such suggestions and enter into discussions with OTI with a view to reaching consensus concerning the appropriate amount of such Safety Stock. An important factor to be considered in determining the appropriate amount of Safety Stocks is the volume of purchases of Products by OTI. |
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| 5.2. | OTI shall buy the Safety Stock of Non-Standard Material from SMARTRAC at the latest of (a) the phase out of the OTI Customer Specific Product related to such Safety Stock, or (b) within one year after the termination of this Agreement (unless terminated as a result of the Escalation Process pursuant to Section 12 below), at the same price paid by SMARTRAC for such Non-Standard Material (based on the assumption that Non-Standard Material purchased by SMARTRAC is used on a “first in first out” basis, i.e., in the order purchased, so that the most recently purchased Non-Standard Material shall comprise the Safety Stock of such material at any given time). |
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| 5.3. | SMARTRAC shall inform OTI twice a year of the volume of its Safety Stock, for purposes of information only. Such notification shall not release SMARTRAC from its obligations relating to Safety Stock under this Agreement. |
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| 6.1 | With respect to any Product delivered by SMARTRAC, SMARTRAC hereby warrants that, during twelve months from the latest of (i) date of delivery of any Product to OTI; or (ii) the date of direct delivery of the Product to a customer of OTI, the Product shall comply with the agreed specifications, shall be in such quality that complies with market standards, and shall be free from defects in design (unless the design was provided by OTI or by OTI’s customer, where an initial drawing provided by OTI or OTI's customer shall in no event be deemed as a design), material, and workmanship. This warranty shall survive any delivery, inspection, acceptance, and payment by OTI. |
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| 6.2 | OTI shall inspect Products by means of random sample inspection shipped to it by SMARTRAC as soon as practicable to determine their conformance to the Purchase Order and shall advise SMARTRAC as soon as practicable if a defect in a Product is discovered. OTI waives any right to assert a claim against SMARTRAC arising from any non-conformity of Products sold hereunder which would have been observable upon said random sample inspection or testing within thirty days after delivery to OTI. |
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| 6.3 | In the event OTI detects a defect (“Defect”) in a Product within the warranty period specified above, upon OTI’s written notice to SMARTRAC within 30 Working Days after detecting the Defect, describing in reasonable detail (i.e., such detail as will enable SMARTRAC to easily identify the alleged Defect) the nature of the alleged Defect together with the Product in question to SMARTRAC, SMARTRAC shall thereupon have the right to perform an examination of the Product and shall notify OTI in writing of its conclusions within 15 calendar days from receipt of the defective products by SMARTRAC. |
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|   | 6.3.1 | If and to the extent that the Parties agree that the Defect is attributable to SMARTRAC, in OTI's sole discretion and without prejudice to any other rights of OTI under this Agreement or at law to: |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | as soon as practicable, but no later than one week for a Standard Product and two weeks for a Non-Standard Product, to replace the defective Product at no cost to OTI; or |
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|   | (b) | as soon as practicable SMARTRAC shall correct, at no cost to OTI, any defective Product by repairing it, at OTI’s location, provided SMARTRAC determines that it is possible to repair the defective Product; or |
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|   | (c) | if so requested by OTI, accept a return of such defective Product to SMARTRAC at SMARTRAC’s expense and refund in cash as soon as practicable, to OTI the purchase price of the defective Product |
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|   | 6.3.2 | If and to the extent that SMARTRAC concludes following the inspection made according to Section 6.3 that the Defect is not attributable to SMARTRAC, and OTI disagrees to such conclusion, then the Parties will nominate a mutually agreed expert whose determination on the matter shall be final and binding. |
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| 6.4 | SMARTRAC’s warranty of Products shall not apply to any Product or component or part of a Product to the extent damage is caused by (a) a normal wear and tear of the Product, (b) operation above rated capacity or by excessive use compared to the Products specification, (c) a negligent or faulty use, alteration, improper storage, maintenance, repair, operation, or handling by OTI or an OTI customer, which were designed, provided and/or consigned by OTI, unless the design and/or the specification was approved by SMARTARC, or (d) installation or operation not in accordance with the operating instruction, if any, for the Product. |
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| 6.5 | THE WARRANTY OF SMARTRAC EXPRESSED ABOVE SHALL BE IN LIEU OF ANY OTHER WARRANTY, EXPRESSED OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. |
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| 6.6 | SMARTRAC’S SOLE LIABILITY AND OTI’S SOLE REMEDY WITH REGARD TO WARRANTY AS SPECIFIED IN THIS SECTION 6, IS LIMITED TO EITHER (A) REPAIR OR REPLACEMENT OF DEFECTIVE PRODUCTS OR PARTS THEREOF, OR (B) AT OTI'S OPTION, RETURN OF THE PRODUCTS TO SMARTRAC AND REFUND OF THE PURCHASE PRICE. |
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| 6.7 | The terms and conditions of SMARTRAC’s warranty set forth herein shall apply to any replaced or repaired Product. |
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| 6.8 | Upon OTI’s request, the Parties shall discuss on a case by case basis the extension of the scope of warranty for Products. The price for the extended warranty shall be the most favorable price offered to other SMARTRAC customers for similar products. |
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| 6.9 | Any description or representation by SMARTRAC or its agents regarding the use, application, and suitability for a certain purpose, or any of them, of the Products shall be construed as a warranty pursuant Section 6.1 only if made in writing directly from SMARTRAC to OTI. Descriptions may be provided as a specification, sample, model, bulletin, drawing, diagram, engineering sheet, or similar material. Advertisement material sent to OTI and/or supposed to address the general public will not be regarded as a description. |
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| 6.10 | OTI shall make best efforts (and shall provide evidence therefore) in preventing the further use of any allegedly defective Product immediately upon being identified as defective by OTI or OTI’s customer. |
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| 8.1 | SMARTRAC represents that as the date hereof, to the best of its knowledge, the development, manufacture use, and sale of the SMARTRAC Products currently in existence (but not any components obtained from Third Parties such as chips, displays and similar products, or from OTI) by SMARTRAC do not infringe any Third Party’s Intellectual Property Rights and that it has obtained all rights and authorizations required for the development, manufacture, use, and sale of the SMARTRAC Products including the authorizations required from its personnel, inventors, designers and more generally any Person directly or indirectly involved in any development work, or from any Third Party. The limitation of liability pursuant to Section 8.3 below and Section 7 above shall not apply in the event of breach of the representation set forth in this Section 8.1. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | OTI RECOGNIZES AND ACKNOWLEDGES THAT ONE OR MORE OF SMARTRAC’S PRODUCTS (INDIVIDUALLY, “DISPUTED PRODUCT” AND COLLECTIVELY, “DISPUTED PRODUCTS”) UNDER THIS AGREEMENT MAY INFRINGE UPON THIRD PARTY INTELLECTUAL PROPERTY RIGHTS IN ONE OR MORE COUNTRIES AND JURISDICTIONS OF THE WORLD (INDIVIDUALLY, “DISPUTED COUNTRY” and COLLECTIVELY, “DISPUTED COUNTRIES”). THEREFORE SMARTRAC SHALL BE ENTITLED TO EXPRESSLY PROHIBIT IN A WRITTEN NOTICE TO OTI THE SALE, AND RESTRICT (INCLUDING COMPLETELY DENYING AND AVOIDING) ANY LIABILITY RELATING TO INTELLECTUAL PROPERTY RIGHTS IN ANY OF THE DISPUTED COUNTRIES WITH RESPECT TO ANY OF THE DISPUTED PRODUCTS SOLD FOLLOWING THE RECEIPT OF SUCH NOTICE BY OTI. SUCH WRITTEN NOTICE SHALL INCLUDE THE RELEVANT BASIS AND GROUNDS FOR SMARTRAC’S DETERMINATION REGARDING THE ALLEGED INFRINGMENT. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8.3 | IF A THIRD PARTY RAISES A CLAIM AGAINST OTI FOR INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHT BY A PRODUCT SUPPLIED BY SMARTRAC, OR IF OTI IS IN ANY MANNER PREVENTED FROM USING OR SELLING A PRODUCT AS A RESULT OF SUCH AN INFRINGEMENT CLAIM, THE TOTAL LIABILITY OF SMARTRAC TO OTI SHALL BE LIMITED TO AN AMOUNT EQUAL TO THE REVENUE FOR IMPACTED PRODUCT FAMILY ACTUALLY PAID BY OTI TO SMARTRAC DURING THE TWELVE MONTHS PERIOD PRECEDING THE ALLEGED INFRINGEMENT. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4 | SMARTRAC shall forthwith notify OTI if any Third Party makes a reasonable claim or reasonable demand or brings an action against, or gives notice of an intention to make or bring a claim, demand or action against OTI or SMARTRAC or raises a reasonable claim which may be considered as being likely to affect the performance by SMARTRAC of its obligations and undertakings under this Agreement or any related contracts. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.5 | In the event that a Third Party raises a reasonable claim or a reasonable demand or brings an action against, or gives notice of an intention to make or bring a claim, demand or action against OTI or SMARTRAC relating to infringement of Intellectual Property Rights, then notwithstanding any other provisions of this Agreement, OTI shall have the right to purchase the Exclusive Products subject to such claim, demand or action from Third Parties until such matter is resolved. SMARTRAC shall also be obligated to repurchase (at cost) from OTI all products sold by SMARTRAC to OTI that infringe on any Intellectual Property Right. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.6 | SMARTRAC assumes no liability for damages resulting from infringements of Intellectual Property Rights resulting from (a) modifications to Products made by any Person other than SMARTRAC, and/or (b) the use of the Products by OTI in combination or as part of or with other products, unless such combination is the intended use of the Product. OTI shall forthwith notify SMARTRAC if any Third Party makes a claim or demand or brings an action against, or gives notice of an intention to make or bring a claim, demand or action against OTI or SMARTRAC which may reasonably be considered as being likely to affect the performance by SMARTRAC of its obligations and undertakings under this Agreement or any related contracts. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9.1 | SMARTRAC hereby undertakes to manufacture Dual Interface Products for OTI. The Dual Interface Products shall be based on OTI HERA Technology. In the framework of the APA, SMARTRAC shall receive all Dual Interface intellectual property rights as outlined in Attachment 9.1 hereto ("Dual Interface IP"). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | Following the transfer of the Dual Interface IP to SMARTRAC, SMARTRAC shall be the exclusive owner of the Dual Interface IP. Along with the stipulations in the APA with regard to the Dual Interface IP, OTI warrants to the best of its knowledge that the Dual Interface IP is in every aspect sufficient to enable SMARTRAC to produce the Dual Interface Products for the purpose of this Agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.1 | This Agreement shall become effective on the later of (a) the Closing Date of the APA, or (b) when SMARTRAC advises OTI that sufficient transfers of the Assets have been made to SMARTRAC to enable it to begin production of Products pursuant to this Agreement, but in any case not later than the end February 2010. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | This Agreement shall remain effective for a period from the date specified in 11.1 until December 31, 2014; provided that OTI shall have the unilateral right to extend the term of this Agreement ten times for consecutive one-year-period each, by providing written notice to SMARTRAC at least thirty days prior to December 31, 2014 or December 31 of any year thereafter. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | Each Party shall have the right to terminate this Agreement at any time by giving notice thereof in writing to the other Party if the other Party (i) becomes insolvent, or enters into an arrangement with creditors or makes an assignment for the benefit of creditors, or becomes the subject of a bankruptcy, receivership or trusteeship proceeding, or (ii) fails to perform any of its obligations hereunder, and such failure continues uncured for more than thirty (30) days following notice of such failure from the other Party, describing the failure in reasonable details, provided that the escalation process has been complied with.  A termination of this Agreement under this Section shall not in any way limit, or be deemed a waiver of, any other rights and remedies available to either Party pursuant to this Agreement, by reason of a breach of this Agreement by the other Party. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.1 | If any dispute arises out of or in connection with this Agreement, SMARTRAC and OTI agree to use their best and good faith efforts to settle the dispute through consultation and negotiation and a spirit of mutual cooperation. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | If the Parties fail to agree upon a settlement of any dispute hereunder, then resolution shall be escalated to negotiations between the respective heads of business departments of SMARTRAC and OTI, and failing agreement between them, resolution shall be further escalated to negotiations between the Chief Executive Officers of SMARTRAC and of OTI. If this management escalation process has not produced agreement within fourteen Working Days of its initiation, but in any case not later than 4 months after the commencement of negotiations between the parties pursuant to Section 12.1, then the Parties shall be free to take legal action pursuant to Section 12.3. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3 | In case either Party claims that there has been a breach of any provision of this Agreement by the respective other Party that has not been resolved by the escalation provisions of Section 12, the Parties agree that such claim shall solely be determined by arbitration administered by the International Centre for Dispute Resolution (a division of the American Arbitration Association) in accordance with International Arbitration Rules. The number of arbitrators shall be three. The place of arbitration shall be Wilmington, Delaware. The language of the arbitration shall be English. The resolution of such panel of arbitrators shall be final and binding. Subject to Section 7 above, the arbitrator shall be authorized to grant the Parties any remedy, but in no event shall the panel of arbitrators be authorized or empowered to grant to OTI a license to use SMARTRAC’s Intellectual Property Rights as a remedy. Until an award is rendered by the panel of arbitrators, OTI may use a source other than SMARTRAC to obtain products similar to the Product or Products that is/are the subject matter of the arbitration and SMARTRAC shall not sue OTI claiming infringement of any Intellectual Property Right or rights related to the Product or Products that is/are the subject matter of the arbitration. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.4 | The escalation process described in this Section 12 shall not apply to disputes arising in connection with Section 2.3 and 3.3 above. Disputes pursuant to Section 2.3 and 3.3 above shall be resolved according the process described in said section. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13.1 | Failure of either Party hereto to enforce any provision or right of this Agreement shall in no way be considered to be a waiver of such provision or right and shall in no way affect the validity of this Agreement and shall not prejudice such Party from later enforcing or exercising the same or any other provisions or rights which it may have under this Agreement. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2 | No addition to, amendment, modification or waiver of any provision of this Agreement shall be binding upon either Party unless it is in writing and signed by a duly authorized representative of both Parties. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.1 | Neither Party may assign this Agreement without the prior written consent of the other Party, it being agreed that such consent shall not to be unreasonably withheld. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Notwithstanding the foregoing, in the event that a Party sells all or substantially all of its assets to a Third Party, not in an artificial transaction or other transaction that is only designed to circumvent the need to obtain the consent of the other Party for the assignment of this Agreement as specified above ("Sale of Assets Deal"), then this Agreement may be assigned upon written notice to the other Party (based on the assigning Party's sole discretion) and the consent of the other Party shall not be required. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In the event that a Party engages in (a) a Sale of Assets Deal, or (b) a sale of all or substantially all of its shares to a Third Party, or (c) merges with and into another entity (owned by Third Party) where it is not the surviving entity with a competitor or a customer of the other Party, then in such transactions it shall be required, notwithstanding the foregoing, to obtain the consent of the other Party. In the event that the other Party does not provide its consent within 14 Working Days following receipt of a notice, then the Party who wishes to engage in said transaction will have the right to terminate this Agreement without a right for remedy to the other Party, provided that it concludes the proposed transaction. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | The foregoing Section 14.1 to the contrary notwithstanding, SMARTRAC and OTI may each assign its rights and obligations under this Agreement to one or more of its Affiliates. In the event of any such assignment, the assigning Party shall remain liable under this Agreement and guarantee the non-assigning Party that the assignee will assume and perform all rights and obligations of the assigning Party under this Agreement and that the assignee is able to fulfil its duties under this Agreement. As an example of this Section 14.2, if SMARTRAC assigns its rights and obligations under this Agreement to one of its Affiliates (“Assignee”), SMARTRAC would be obligated as a guarantor to guarantee the performance by Assignee of any obligation under this Agreement to OTI.  An additional example would be a sale by an Affiliate of SMARTRAC to an Affiliate of OTI. In that situation, SMARTRAC would be obligated to OTI Affiliate as a guarantor of the obligations of SMARTRAC’s Affiliate to the OTI Affiliate; and OTI would be obligated to SMARTRAC’s Affiliate as a guarantor of the payment and performance by OTI’s Affiliate to SMARTRAC’s Affiliate. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15.1 | During the term of this Agreement and any extension of said term, OTI shall cease the production of Exclusive Product. This obligation of OTI to cease such production includes the understanding and agreement by OTI that it will not transfer knowledge relating to the Exclusive Product production to any Third Party, unless in such events specified in this Agreement, pursuant to which OTI can use Third Parties to produce such Exclusive Products. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2 | OTI acknowledges and agrees that the restrictions contained in this Section 15 are fair and reasonable and necessary to accomplish the scope objectives contemplated by this Agreement. If, at the time of enforcement of any provision of this Section 15, a court or other tribunal shall hold that the restrictions therein are unreasonable or unenforceable under circumstances then existing, the Parties agree that the maximum period, scope or geographical area reasonable under such circumstances shall be substituted for the stated period, scope or area. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3 | The Parties agree that, in the event of any breach by a Party of any of the provisions of this Agreement, money damages may be inadequate and the other Party may not have an adequate remedy at law. Accordingly, notwithstanding anything to the contrary contained in the this Agreement, the Parties agree that such Party shall have the rights, in addition to any other rights and obligations under this Agreement, to seek an adequate remedy for such breach, in any court having jurisdiction over the matter, not only by an action for damages but also by an action or actions for specific performance, injunction and /or other equitable relief in order to enforce or prevent any violations (whether anticipatory, continuing or future) of the provisions of this Section 15. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 19.1 | Any changes or amendments to this Agreement including any changes or amendments to this provision must be in written form in order to be valid and binding. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.2 | This Agreement is written in the English language, and all matters dealing with this Agreement shall be in English. |
|------|---------------------------------------------------------------------------------------------------------------------|

----

| 19.3 | Each Party acknowledges and confirms that it and its counsel have reviewed this Agreement and that the rule of construction to the effect that any ambiguities are to be resolved against the drafting Party will not be employed in the interpretation and construction of this Agreement. In addition, the headings used in this Agreement are for convenience only and in no event shall be used for interpreting this Agreement. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.4 | All notices and other communications under this Agreement (except for those required pursuant to Section 2.3 and 3.3 above with regard to which the Parties may not use a different manner of notices) shall be in writing and shall be given or made by delivery in person (and shall be deemed to have been duly given upon such delivery), by overnight courier service (and shall be deemed to have been duly given two Working Days after delivery to the courier service), by facsimile (and shall be deemed to have been duly given after transmission in full with electronic confirmation of transmission if delivered during recipient’s business hours, or on the next Working Day if delivered after recipient’s business hours), by email (and shall be deemed to have been duly received at the time sent by the sending Party), or by registered or certified mail (postage prepaid, return receipt requested) (and shall be deemed to have been duly given five Working Days after delivery to the mail service) to the respective parties at the following addresses (or to such other address or facsimile number as a Party may have specified by notice given to the other Party pursuant to this provision): |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 20.1 | Each Party to this Agreement hereby agrees and specifies that this Agreement shall be governed by and construed under the laws of the State of Delaware in the United States of America (including the Uniform Commercial Code as adopted in Delaware), without regard to principles of conflicts of laws. The International Convention of Sales of Goods shall not apply to this Agreement. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.2 | Each Party further agrees and specifies that (except as specifically provided in Section 12.3) such Party shall be subject to the jurisdiction of the courts of Delaware. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.3 | SMARTRAC may be served with legal process c/o National Registered Agents, Inc., 160 Greentree Drive, Suite 101, Dover, DE 19904 Delaware or at such Party’s address set forth above or if different, at the principal office of the Party wherever that office may be in the world at the time such service is made or attempted to be made, or at whatever address is permitted by the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil and Commercial Matters. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.4 | OTI may be served with legal process c/o OTI America, Inc., 111 Wood Ave. South, Suite 105, Iselin, New Jersey 08830 or at such Party’s address set forth above or if different, at the principal office of the Party wherever that office may be in the world at the time such service is made or attempted to be made, or at whatever address is permitted by the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil and Commercial Matters. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.5 | Each of the Parties commits to maintain the appointment of said agent of process for at least ten years from the date hereof. |
|------|-------------------------------------------------------------------------------------------------------------------------------|

----

|   | Dated this 22nd day of December, 2009. |
|--------|----------------------------------------|

|   | SMARTRAC N.V.                            |
|--------|------------------------------------------|
|   |                                     |
|   | By:  /s/ Dr. Christian Fischer |
|   |                                     |
|   | Printed Name: Dr. Christian Fischer      |
|   |                                     |
|   | Printed Title: CEO                       |
|   |                                     |
|   | By:  /s/ Manfred Rietzler      |
|   |                                     |
|   | Printed Name: Manfred Rietzler           |
|   |                                     |
|   | Printed Title: CTO                       |
|   |                                     |
|   | ON TRACK INNOVATIONS LTD.                |
|   |                                     |
|   | By: /s/ Oded Bashan                      |
|   |                                     |
|   | Printed Name: Oded Bashan                |
|   |                                     |
|   | Printed Title: CEO                       |
|   |                                     |
|   | By: /s/ Tanir Horn                       |
|   |                                     |
|   | Printed Name: Tanir Horn                 |
|   |                                     |
|   | Printed Title: CFO                       |

----

|   | A. | OTI sends-in the draft specification. |
|--------|----|---------------------------------------|

|   | 1. | Product drawing or sketch |
|--------|----|---------------------------|

|   | a. | Form factor |
|--------|----|-------------|

|   | b. | Dimensions, size, thickness |
|--------|----|-----------------------------|

|   | c. | Required tolerances |
|--------|----|---------------------|

|   | 2. | Chip definition or chip requirements |
|--------|----|--------------------------------------|

|   | 3. | Antenna specification |
|--------|----|-----------------------|

|   | a. | Frequency requirements |
|--------|----|------------------------|

|   | b. | Geometrical dimensions |
|--------|----|------------------------|

|   | c. | Q-factor requirements if any |
|--------|----|------------------------------|

|   | 4. | Material specifications or requirements |
|--------|----|-----------------------------------------|

|   | 5. | Other requirements (if any); i.e. rated capacity and / or threshold for excessive use |
|--------|----|---------------------------------------------------------------------------------------|

|   | B. | SMARTRAC will define a specification based on above input as D-xxxx drawing (draft-drawing; for example, please refer to ANNEX); |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------|

|   | C. | Within 3 Working Days after getting the input from OTI SMARTRAC will send this D-xxxx-drawing to OTI for approval; |
|--------|----|--------------------------------------------------------------------------------------------------------------------|

|   | D. | Within 3 Working Days after getting the written approval from OTI, SMARTRAC will convert this D-type of drawing into an A-xxxx-drawings (real production drawing); |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | E. | SMARTRAC will then produce the first set of samples and send (i) several samples to OTI for quality control, and (ii) if required by OTI several samples to customer of OTI for design-in and test (quantities needs to be defined in accordance with Section 3.7 of the Agreement). |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | F. | OTI will give the final approval on the real samples; |
|--------|----|-------------------------------------------------------|

----

|   | G. | SMARTRAC is ready to accept volume orders based on this specific A-xxxx-drawing; |
|--------|----|----------------------------------------------------------------------------------|

|   | H. | If any adoptions / changes are required as per OTI request or approval, SMARTRAC will use a revision-system in the D-xxxx / A-xxxx-drawing, starting with P0 (original version), P1 (first revision) forthwith, to track such changes. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Overview                                         |
|--------------------------------------------------|
| Operating Frequency                              |
| 13.56 MHz                                        |
| Material                                         |
| PC, PET-G, DURASOFTTM, Composite            |
|                                             |
| Standard                                         |
| ISO 14443 + ICAO compliant                       |
| Applications                                     |
| - Secure Identification                          |
|                                             |
| Benefits                                         |
| - Various sheet dimensions and chips available   |
| - Durability                                     |
| - Reliability                                    |
| - Proven technology                              |
| - Fulfils highest quality and security standards |

----

|                             | Operating                |      |                                 |                          |                                      |
|----------------------------------|--------------------------|-----------|--------------------------------------|-------------------------------|-------------------------------------------|
| Dimension                        |  Temperature        | Frequency | Material                             | Thickness                     | Available ICs                             |
|                             |                     |      |                                 |                          |                                      |
| ID-3 Inlay size (88 mm x 125 mm) | -25°C to +50°C | 13.56 MHz | PC, PET-G, DURASOFTTM,Composite | Typical 400 ± 30 μm | ICAO compliant chips andOperating Systems |

| For further information, please contact: SMARTRAC TECHNOLOGY GmbHAlbstrasse 1470597 Stuttgart, GermanyPhone: +49 711 656 926-10Fax: +49 711 656 926-11sales-europe@smartrac-group.com |   | Sales Asia PacificSMARTRAC TECHNOLOGY Pte. Ltd.6 Greenleaf Walk,Amsterdam Building 2-8Singapore 279227sales-asia@smartrac-group.com Sales East AsiaSMARTRAC TECHNOLOGY Ltd.142 Mool, Hi-Tech Industrial EstateTambon Ban Laean, Amphor Bang-pa-in,Phra Nakorn Sri Ayutthaya13160 Thailandsales@smartrac-group.com |   | Sales AmericaSMARTRAC TECHNOLOGY US Inc.1546 Lake Drive WestChanhassen, MN 55317, USAsales-america@smartrac-group.com Sales Latin AmericaSMARTRAC TECNOLOGIA INDUSTRIAE COMERCIO DA AMAZONIA LTDAAvenida Acai 875-C69075-020 Manaus, Brazilsales-brazil@smartrac-group.comsales-latinamerica@smartrac-group.com |   | Sales Middle East and Africasales-middleeast-africa@smartrac-group.com |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|

----

| Overview                            |
|-------------------------------------|
| Operating Frequency                 |
| 125 kHz (Low Frequency)             |
| 13.56 MHz (High Frequency)          |
| UHF bandwidths:                     |
|     US 902 - 928 MHz |
|     EU 865-878 MHz   |
|     JP 952-954 MHz   |
| or no RF functionality              |
| Material                            |
| PVC                                 |
| Standard                            |
| ISO 7816 compatible                 |
| Applications                        |
| - eBanking                          |
| - Access control                    |
| - Identification                    |
| - Fancy/ Gift cards                 |
|                                |
| Benefits                            |
| - Security                          |
| - Practical form factor             |
| - Customized layout possible        |

----

|              | Operating                |                               |     |                |                                |
|-------------------|--------------------------|------------------------------------|----------|---------------------|-------------------------------------|
| Dimension*        | Temperature              | Frequency                          | Material | Thickness           | Other Componments                   |
|              |                     |                               |     |                |                                |
| 3x6               | -25°C to +50°C | LF/ HF/ UHF Or no RF functionality | PVC      | Typical 520 μm | Display module LED, battery, switch |
|              |                     |                               |     |                |                                |
| 3x7               | -25°C to +50°C | LF/ HF/ UHF Or no RF functionality | PVC      | Typical 520 μm | Display module LED, battery, switch |
|              |                     |                               |     |                |                                |
| 3x8               | -25°C to +50°C | LF/ HF/ UHF Or no RF functionality | PVC      | Typical 520 μm | Display module LED, battery, switch |
|              |                     |                               |     |                |                                |
| Max: 320 x 480 mm | -25°C to +50°C | LF/ HF/ UHF Or no RF functionality | PVC      | Typical 520 μm | Display module LED, battery, switch |

| For further information, please contact: SMARTRAC TECHNOLOGY Pte. Ltd.6 Greenleaf Walk, Amsterdam Building 2-8Singapore 279227Phone +65 6469 3780Fax +65 6469 0867cards@smartrac-group.com |   | Sales EuropeSMARTRAC TECHNOLOGY GmbHAlbstrasse 1470597 Stuttgart, Germanysales-europe@smartrac-group.com Sales East AsiaSMARTRAC TECHNOLOGY Ltd.142 Moo1, Hi-Tech Industrial EstateTambon Ban Laean, Amphor Bang-pa-in,Phra Nakorn Sri Ayutthaya13160 Thailandsales@smartrac-group.com |   | Sales AmericaSMARTRAC TECHNOLOGY US Inc.1546 Lake Drive WestChanhassen, MN 55317, USAsales-america@smartrac-group.com Sales Latin AmericaSMARTRAC TECNOLOGIA INDUSTRIAE COMERCIO DA AMAZONIA LTDAAvenida Acai 875-C69075-020 Manaus, Brazilsales-brazil@smartrac-group.comsales-latinamerica@smartrac-group.com |   | Sales Middle East and Africasales-middleeast-africa@smartrac-group.com |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|

----

| Overview                                          |
|---------------------------------------------------|
| Operating Frequency                               |
| 13.56 MHz                                         |
| Operating Temperature                             |
| -25°C to +50°C                          |
| Material                                          |
| PVC, PC, PET-G                                    |
| Standard                                          |
| ISO 7816/ ISO 14443                               |
| Applications                                      |
| - ePayment                                        |
| - Secure Identification                           |
| - Access control                                  |
|                                              |
| Benefits                                          |
| - Customized formats and chips available          |
| - Minimal investment needed by card manufacturers |
| - Highest durability                              |
| - Greater reliability than conventional           |
|    Dual Interface Technology            |

----

|              | Operating                |      |           |                  |                                                 |
|-------------------|--------------------------|-----------|----------------|-----------------------|------------------------------------------------------|
| Dimension*        | Temperature              | Frequency | Material       | Thickness             | Available ICs                                        |
|              |                     |      |           |                  |                                                 |
| 3x6               | -25°C to +50°C | 13.56 MHz | PVC, PC, PET-G | 330 ± 30 μm | Dual Interface chip modules fromInfineon, NXP and ST |
|              |                     |      |           |                  |                                                 |
| 3x7               | -25°C to +50°C | 13.56 MHz | PVC, PC, PET-G | 330 ± 30 μm | Dual Interface chip modules fromInfineon, NXP and ST |
|              |                     |      |           |                  |                                                 |
| 3x8               | -25°C to +50°C | 13.56 MHz | PVC, PC, PET-G | 330 ± 30 μm | Dual Interface chip modules fromInfineon, NXP and ST |
|              |                     |      |           |                  |                                                 |
| 5x5               | -25°C to +50°C | 13.56 MHz | PVC, PC, PET-G | 330 ± 30 μm | Dual Interface chip modules fromInfineon, NXP and ST |
|              |                     |      |           |                  |                                                 |
| Max: 325 x 475 mm | -25°C to +50°C | 13.56 MHz | PVC, PC, PET-G | 330 ± 30 μm | Dual Interface chip modules fromInfineon, NXP and ST |

| For further information, please contact: SMARTRAC TECHNOLOGY Pte. Ltd.6 Greenleaf Walk, Amsterdam Building 2-8Singapore 279227Phone +65 6469 3780Fax +65 6469 0867cards@smartrac-group.com |   | Sales EuropeSMARTRAC TECHNOLOGY GmbHAlbstrasse 1470597 Stuttgart, Germanysales-europe@smartrac-group.com Sales East AsiaSMARTRAC TECHNOLOGY Ltd.142 Moo1, Hi-Tech Industrial EstateTambon Ban Laean, Amphor Bang-pa-in,Phra Nakorn Sri Ayutthaya13160 Thailandsales@smartrac-group.com |   | Sales AmericaSMARTRAC TECHNOLOGY US Inc.1546 Lake Drive WestChanhassen, MN 55317, USAsales-america@smartrac-group.com Sales Latin AmericaSMARTRAC TECNOLOGIA INDUSTRIAE COMERCIO DA AMAZONIA LTDAAvenida Acai 875-C69075-020 Manaus, Brazilsales-brazil@smartrac-group.comsales-latinamerica@smartrac-group.com |   | Sales Middle East and Africasales-middleeast-africa@smartrac-group.com |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|

----

| Overview                                            |
|-----------------------------------------------------|
| Operating Frequency                                 |
| 125 kHz (Low Frequency)                             |
| 13.56 MHz (High Frequency)                          |
| UHF bandwidths:                                     |
|     US 902 - 928 MHz                 |
|     EU 865-878 MHz                   |
|     JP 952-954 MHz                   |
| Operating Temperature                               |
| -25°C to +50°C                            |
| Material                                            |
| PVC, PC, PET-G, Teslin®                        |
| Standard                                            |
| ISO 14443, ISO 15693                                |
| ISO 18000                                           |
| Applications                                        |
| - Access control                                    |
| - ePayment                                          |
| - Identification                                    |
| - Automated fare collection                         |
|                                                |
| Benefits                                            |
| - Customized formats and chips available            |
| - Available in hybrid combinations LF/HF and HF/UHF |
| - Good yield rates                                  |
| - Highest mechanical durability and lifetime        |
| - Optimal calibration between two antennas          |

----

|              | Operating                |      |            |                |                             |
|-------------------|--------------------------|-----------|-----------------|---------------------|----------------------------------|
| Dimension*        | Temperature              | Frequency | Material        | Thickness           | Available ICs                    |
|              |                     |      |            |                |                             |
| 3x6               | -25°C to +50°C | LF - HF   | PVC, PC, PET-G, | Typical between     | Atmel, EM Marin, Infineon,       |
| 3x7               |                     |      | Teslin®    | 380 and 460 μm | Inside, LEGIC, NXP, Sony         |
| 3x8               |                     |      |            |                |                             |
| 4x10              |                     |      |            |                |                             |
| 5x5               |                     |      |            |                |                             |
| 6x6               |                     |      |            |                |                             |
| 7x8               |                     |      |            |                |                             |
| Max: 525 x 650 mm |                     |      |            |                |                             |
|              |                     |      |            |                |                             |
| 3x6               | -25°C to +50°C | HF - UHF  | PVC, PC, PET-G, | Typical between     | Alien, EM Marin, Impinj, Infine- |
| 3x7               |                     |      | Teslin®    | 380 and 460 μm | on, Inside, LEGIC, NXP, Sony     |
| 3x8               |                     |      |            |                |                             |
| 4x10              |                     |      |            |                |                             |
| 5x5               |                     |      |            |                |                             |
| 6x6               |                     |      |            |                |                             |
| 7x8               |                     |      |            |                |                             |
| Max: 525 x 650 mm |                     |      |            |                |                             |

| For further information, please contact: SMARTRAC TECHNOLOGY Pte. Ltd.6 Greenleaf Walk, Amsterdam Building 2-8Singapore 279227Phone +65 6469 3780Fax +65 6469 0867cards@smartrac-group.com |   | Sales EuropeSMARTRAC TECHNOLOGY GmbHAlbstrasse 1470597 Stuttgart, Germanysales-europe@smartrac-group.com Sales East AsiaSMARTRAC TECHNOLOGY Ltd.142 Moo1, Hi-Tech Industrial EstateTambon Ban Laean, Amphor Bang-pa-in,Phra Nakorn Sri Ayutthaya13160 Thailandsales@smartrac-group.com |   | Sales AmericaSMARTRAC TECHNOLOGY US Inc.1546 Lake Drive WestChanhassen, MN 55317, USAsales-america@smartrac-group.com Sales Latin AmericaSMARTRAC TECNOLOGIA INDUSTRIAE COMERCIO DA AMAZONIA LTDAAvenida Acai 875-C69075-020 Manaus, Brazilsales-brazil@smartrac-group.comsales-latinamerica@smartrac-group.com |   | Sales Middle East and Africasales-middleeast-africa@smartrac-group.com |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|

----

| Overview                          |
|-----------------------------------|
| Operating Frequency               |
| 13.56 MHz                         |
| Operating Temperature             |
| -25°C to +50°C          |
| Material                          |
| PVC, PC, PET-G                    |
| Applications                      |
| - Automatic fare collection       |
| - Identification                  |
| - Ticketing                       |
|                              |
| Benefits                          |
| - ISO compliant                   |
| - Various sheet formats available |

----

|              | Operating                |      |           |                |                   |
|-------------------|--------------------------|-----------|----------------|---------------------|------------------------|
| Dimension*        | Temperature              | Frequency | Material       | Thickness           | Available ICs          |
|              |                     |      |           |                |                   |
| 3x6               | -25°C to +50°C | 13.56 MHz | PVC, PC, PET-G | Typical 400 μm | Sony FeliCa4kbyte FRAM |
|              |                     |      |           |                |                   |
| 3x7               | -25°C to +50°C | 13.56 MHz | PVC, PC, PET-G | Typical 400 μm | Sony FeliCa4kbyte FRAM |
|              |                     |      |           |                |                   |
| 4x10              | -25°C to +50°C | 13.56 MHz | PVC, PC, PET-G | Typical 400 μm | Sony FeliCa4kbyte FRAM |
|              |                     |      |           |                |                   |
| 5x5               | -25°C to +50°C | 13.56 MHz | PVC, PC, PET-G | Typical 400 μm | Sony FeliCa4kbyte FRAM |
|              |                     |      |           |                |                   |
| 6x6               | -25°C to +50°C | 13.56 MHz | PVC, PC, PET-G | Typical 400 μm | Sony FeliCa4kbyte FRAM |
|              |                     |      |           |                |                   |
| 6x11              | -25°C to +50°C | 13.56 MHz | PVC, PC, PET-G | Typical 400 μm | Sony FeliCa4kbyte FRAM |
|              |                     |      |           |                |                   |
| 7x8               | -25°C to +50°C | 13.56 MHz | PVC, PC, PET-G | Typical 400 μm | Sony FeliCa4kbyte FRAM |
|              |                     |      |           |                |                   |
| Max: 580 x 705 mm | -25°C to +50°C | 13.56 MHz | PVC, PC, PET-G | Typical 400 μm | Sony FeliCa4kbyte FRAM |

| For further information, please contact: SMARTRAC TECHNOLOGY Pte. Ltd.6 Greenleaf Walk, Amsterdam Building 2-8Singapore 279227Phone +65 6469 3780Fax +65 6469 0867cards@smartrac-group.com |   | Sales EuropeSMARTRAC TECHNOLOGY GmbHAlbstrasse 1470597 Stuttgart, Germanysales-europe@smartrac-group.com Sales East AsiaSMARTRAC TECHNOLOGY Ltd.142 Moo1, Hi-Tech Industrial EstateTambon Ban Laean, Amphor Bang-pa-in,Phra Nakorn Sri Ayutthaya13160 Thailandsales@smartrac-group.com |   | Sales AmericaSMARTRAC TECHNOLOGY US Inc.1546 Lake Drive WestChanhassen, MN 55317, USAsales-america@smartrac-group.com Sales Latin AmericaSMARTRAC TECNOLOGIA INDUSTRIAE COMERCIO DA AMAZONIA LTDAAvenida Acai 875-C69075-020 Manaus, Brazilsales-brazil@smartrac-group.comsales-latinamerica@smartrac-group.com |   | Sales Middle East and Africasales-middleeast-africa@smartrac-group.com |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|

----

| Overview                                     |
|----------------------------------------------|
| Operating Frequency                          |
| 125 kHz (Low Frequency)                      |
| 13.56 MHz (High Frequency)                   |
| UHF bandwidths:                              |
|     US 902 - 928 MHz          |
|     EU 865-878 MHz            |
|     JP 952-954 MHz            |
| Operating Temperature                        |
| -25°C to +50°C                     |
| Material                                     |
| PVC, PC, PET-G, Teslin®                 |
| Standard                                     |
| ISO 14443, ISO 15693, ISO 18000              |
| Applications                                 |
| - Automated fare collection                  |
| - Identification                             |
| - Access control                             |
| - ePayment                                   |
|                                         |
| Benefits                                     |
| - Available in LF, HF and UHF                |
| - Customized formats and chips available     |
| - Highest mechanical durability and lifetime |
| - High yield rates in card production        |
| - Can be processed with standard card        |
|    manufacturing equipment         |

----

|              | Operating                |        |                         |                                |                                                                     |
|-------------------|--------------------------|-------------|------------------------------|-------------------------------------|--------------------------------------------------------------------------|
| Dimension*        | Temperature              | Frequency   | Material                     | Thickness                           | Available ICs*                                                           |
|              |                     |        |                         |                                |                                                                     |
| 2x2               | -25°C to +50°C | LF/ HF/ UHF | PVC, PC, PET-G, Teslin® | Typical between380 and 460 μm  | Alien, Atmel, EM Marin, Impinj,Infineon, InsideLEGIC, NXP, SAMSUNG, Sony |
|              |                     |        |                         |                                |                                                                     |
| 3x6               | -25°C to +50°C | LF/ HF/ UHF | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Atmel, EM Marin, Impinj,Infineon, InsideLEGIC, NXP, SAMSUNG, Sony |
|              |                     |        |                         |                                |                                                                     |
| 3x7               | -25°C to +50°C | LF/ HF/ UHF | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Atmel, EM Marin, Impinj,Infineon, InsideLEGIC, NXP, SAMSUNG, Sony |
|              |                     |        |                         |                                |                                                                     |
| 4x10              | -25°C to +50°C | LF/ HF/ UHF | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Atmel, EM Marin, Impinj,Infineon, InsideLEGIC, NXP, SAMSUNG, Sony |
|              |                     |        |                         |                                |                                                                     |
| 5x5               | -25°C to +50°C | LF/ HF/ UHF | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Atmel, EM Marin, Impinj,Infineon, InsideLEGIC, NXP, SAMSUNG, Sony |
|              |                     |        |                         |                                |                                                                     |
| 6x6               | -25°C to +50°C | LF/ HF/ UHF | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Atmel, EM Marin, Impinj,Infineon, InsideLEGIC, NXP, SAMSUNG, Sony |
|              |                     |        |                         |                                |                                                                     |
| 6x11              | -25°C to +50°C | LF/ HF/ UHF | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Atmel, EM Marin, Impinj,Infineon, InsideLEGIC, NXP, SAMSUNG, Sony |
|              |                     |        |                         |                                |                                                                     |
| 6x12              | -25°C to +50°C | LF/ HF/ UHF | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Atmel, EM Marin, Impinj,Infineon, InsideLEGIC, NXP, SAMSUNG, Sony |
|              |                     |        |                         |                                |                                                                     |
| 7x8               | -25°C to +50°C | LF/ HF/ UHF | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Atmel, EM Marin, Impinj,Infineon, InsideLEGIC, NXP, SAMSUNG, Sony |
|              |                     |        |                         |                                |                                                                     |
| Max: 580 x 705 mm | -25°C to +50°C | LF/ HF/ UHF | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Atmel, EM Marin, Impinj,Infineon, InsideLEGIC, NXP, SAMSUNG, Sony |

| For further information, please contact: SMARTRAC TECHNOLOGY Pte. Ltd.6 Greenleaf Walk, Amsterdam Building 2-8Singapore 279227Phone +65 6469 3780Fax +65 6469 0867cards@smartrac-group.com |   | Sales EuropeSMARTRAC TECHNOLOGY GmbHAlbstrasse 1470597 Stuttgart, Germanysales-europe@smartrac-group.com Sales East AsiaSMARTRAC TECHNOLOGY Ltd.142 Moo1, Hi-Tech Industrial EstateTambon Ban Laean, Amphor Bang-pa-in,Phra Nakorn Sri Ayutthaya13160 Thailandsales@smartrac-group.com |   | Sales AmericaSMARTRAC TECHNOLOGY US Inc.1546 Lake Drive WestChanhassen, MN 55317, USAsales-america@smartrac-group.com Sales Latin AmericaSMARTRAC TECNOLOGIA INDUSTRIAE COMERCIO DA AMAZONIA LTDAAvenida Acai 875-C69075-020 Manaus, Brazilsales-brazil@smartrac-group.comsales-latinamerica@smartrac-group.com |   | Sales Middle East and Africasales-middleeast-africa@smartrac-group.com |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|

----

| Overview                                              |
|-------------------------------------------------------|
| Operating Frequency                                   |
| 13.56MHz (High Frequency)                             |
| Operating Temperature                                 |
| -25°C to +50°C                              |
| Material                                              |
| PVC                                                   |
| Applications                                          |
| - Automated fare collection                           |
| - ePayment                                            |
|                                                  |
| Benefits                                              |
| - Customized formats and chips available              |
| - No extra processing steps for the card manufacturer |

----

|                                        | Operating                |      |     |                                                |
|---------------------------------------------|--------------------------|-----------|----------|-----------------------------------------------------|
| Dimension*                                  | Temperature              | Frequency | Material | Available ICs*                                      |
|                                        |                     |      |     |                                                |
| Customized formatsfor example: 260 x 640 mm | -25°C to +50°C | 13.56 MHz | PVC      | EM Marin, Infineon, InsideLEGIC, NXP, Sony, SAMSUNG |

| For further information, please contact: SMARTRAC TECHNOLOGY Pte. Ltd.6 Greenleaf Walk, Amsterdam Building 2-8Singapore 279227Phone +65 6469 3780Fax +65 6469 0867cards@smartrac-group.com |   | Sales EuropeSMARTRAC TECHNOLOGY GmbHAlbstrasse 1470597 Stuttgart, Germanysales-europe@smartrac-group.com Sales East AsiaSMARTRAC TECHNOLOGY Ltd.142 Moo1, Hi-Tech Industrial EstateTambon Ban Laean, Amphor Bang-pa-in,Phra Nakorn Sri Ayutthaya13160 Thailandsales@smartrac-group.com |   | Sales AmericaSMARTRAC TECHNOLOGY US Inc.1546 Lake Drive WestChanhassen, MN 55317, USAsales-america@smartrac-group.com Sales Latin AmericaSMARTRAC TECNOLOGIA INDUSTRIAE COMERCIO DA AMAZONIA LTDAAvenida Acai 875-C69075-020 Manaus, Brazilsales-brazil@smartrac-group.comsales-latinamerica@smartrac-group.com |   | Sales Middle East and Africasales-middleeast-africa@smartrac-group.com |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|

----

| Overview                                  |
|-------------------------------------------|
| Operating Frequency                       |
| 13.56 MHz (High Frequency)                |
| Operating Temperature                     |
| -25°C to +50°C                  |
| Material                                  |
| PVC, PET-G                                |
| Standard                                  |
| ISO 14443, ISO 15693, ISO 7810, ISO 15457 |
| Applications                              |
| - Automated fare collection               |
| - Identification                          |
| - Ticketing                               |
|                                      |
| Benefits                                  |
| - Various formats and chips available     |
| - Anti-collison feature                   |
| - Thin structure                          |

----

|             | Operating                |      |       |        |                                  |
|------------------|--------------------------|-----------|------------|-------------|---------------------------------------|
| Dimension*       | Temperature              | Frequency | Material   | Thinness    | Available ICs*                        |
|             |                     |      |       |        |                                  |
| 3x6              | -25°C to +50°C | 13.56 MHz | PVC, PET-G | 300 μm | EM Marin, Infineon, Inside,LEGIC, NXP |
|             |                     |      |       |        |                                  |
| 3x7              | -25°C to +50°C | 13.56 MHz | PVC, PET-G | 300 μm | EM Marin, Infineon, Inside,LEGIC, NXP |
|             |                     |      |       |        |                                  |
| 3x8              | -25°C to +50°C | 13.56 MHz | PVC, PET-G | 300 μm | EM Marin, Infineon, Inside,LEGIC, NXP |
|             |                     |      |       |        |                                  |
| 4x8              | -25°C to +50°C | 13.56 MHz | PVC, PET-G | 300 μm | EM Marin, Infineon, Inside,LEGIC, NXP |
|             |                     |      |       |        |                                  |
| 5x5              | -25°C to +50°C | 13.56 MHz | PVC, PET-G | 300 μm | EM Marin, Infineon, Inside,LEGIC, NXP |
|             |                     |      |       |        |                                  |
| 6x6              | -25°C to +50°C | 13.56 MHz | PVC, PET-G | 300 μm | EM Marin, Infineon, Inside,LEGIC, NXP |
|             |                     |      |       |        |                                  |
| 7x8              | -25°C to +50°C | 13.56 MHz | PVC, PET-G | 300 μm | EM Marin, Infineon, Inside,LEGIC, NXP |
|             |                     |      |       |        |                                  |
| Max: 580 x 705mm | -25°C to +50°C | 13.56 MHz | PVC, PET-G | 300 μm | EM Marin, Infineon, Inside,LEGIC, NXP |

| For further information, please contact: SMARTRAC TECHNOLOGY Pte. Ltd.6 Greenleaf Walk, Amsterdam Building 2-8Singapore 279227Phone +65 6469 3780Fax +65 6469 0867cards@smartrac-group.com |   | Sales EuropeSMARTRAC TECHNOLOGY GmbHAlbstrasse 1470597 Stuttgart, Germanysales-europe@smartrac-group.com Sales East AsiaSMARTRAC TECHNOLOGY Ltd.142 Moo1, Hi-Tech Industrial EstateTambon Ban Laean, Amphor Bang-pa-in,Phra Nakorn Sri Ayutthaya13160 Thailandsales@smartrac-group.com |   | Sales AmericaSMARTRAC TECHNOLOGY US Inc.1546 Lake Drive WestChanhassen, MN 55317, USAsales-america@smartrac-group.com Sales Latin AmericaSMARTRAC TECNOLOGIA INDUSTRIAE COMERCIO DA AMAZONIA LTDAAvenida Acai 875-C69075-020 Manaus, Brazilsales-brazil@smartrac-group.comsales-latinamerica@smartrac-group.com |   | Sales Middle East and Africasales-middleeast-africa@smartrac-group.com |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|

----

| Overview                                                   |
|------------------------------------------------------------|
| Operating Frequency                                        |
| US 902-928 MHz, EU 865-878 MHz,                            |
| JP 952-954 MHz or other customized                         |
| bandwidths                                                 |
| Operating Temperature                                      |
| -25°C to +50°C                                   |
| Material                                                   |
| PVC, PC, PET-G, Teslin®                               |
| Colour                                                     |
| White with transparent overlay                             |
| Standard                                                   |
| EPC Class-1 Gen-2 and ISO/IEC 18000-6C                     |
| Applications                                               |
| - Access control                                           |
| - Secure Identification                                    |
| - Parking control                                          |
| - Border crossing                                          |
|                                                       |
| Benefits                                                   |
| - Customized formats and chips available                   |
| - Highest mechanical durability and reliability            |
| - Easy processing with normal card manufacturing equipment |
|    (no prelamination  steps required)       |
| - Material options                                         |

----

|              | Operating                |      |                         |                                |               |
|-------------------|--------------------------|-----------|------------------------------|-------------------------------------|--------------------|
| Dimension*        | Temperature              | Frequency | Material                     | Thickness**                         | Available ICs      |
|              |                     |      |                         |                                |               |
| 2x2               | -25°C to +50°C | UHF       | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Impinj, NXP |
|              |                     |      |                         |                                |               |
| 3x6               | -25°C to +50°C | UHF       | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Impinj, NXP |
|              |                     |      |                         |                                |               |
| 3x7               | -25°C to +50°C | UHF       | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Impinj, NXP |
|              |                     |      |                         |                                |               |
| 3x8               | -25°C to +50°C | UHF       | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Impinj, NXP |
|              |                     |      |                         |                                |               |
| 4x10              | -25°C to +50°C | UHF       | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Impinj, NXP |
|              |                     |      |                         |                                |               |
| 5x5               | -25°C to +50°C | UHF       | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Impinj, NXP |
|              |                     |      |                         |                                |               |
| 6x6               | -25°C to +50°C | UHF       | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Impinj, NXP |
|              |                     |      |                         |                                |               |
| 6x12              | -25°C to +50°C | UHF       | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Impinj, NXP |
|              |                     |      |                         |                                |               |
| 7x8               | -25°C to +50°C | UHF       | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Impinj, NXP |
|              |                     |      |                         |                                |               |
| Max: 525 x 650 mm | -25°C to +50°C | UHF       | PVC, PC, PET-G, Teslin® | Typical between 380 and 460 μm | Alien, Impinj, NXP |

| For further information, please contact: SMARTRAC TECHNOLOGY Pte. Ltd.6 Greenleaf Walk, Amsterdam Building 2-8Singapore 279227Phone +65 6469 3780Fax +65 6469 0867cards@smartrac-group.com |   | Sales EuropeSMARTRAC TECHNOLOGY GmbHAlbstrasse 1470597 Stuttgart, Germanysales-europe@smartrac-group.com Sales East AsiaSMARTRAC TECHNOLOGY Ltd.142 Moo1, Hi-Tech Industrial EstateTambon Ban Laean, Amphor Bang-pa-in,Phra Nakorn Sri Ayutthaya13160 Thailandsales@smartrac-group.com |   | Sales AmericaSMARTRAC TECHNOLOGY US Inc.1546 Lake Drive WestChanhassen, MN 55317, USAsales-america@smartrac-group.com Sales Latin AmericaSMARTRAC TECNOLOGIA INDUSTRIAE COMERCIO DA AMAZONIA LTDAAvenida Acai 875-C69075-020 Manaus, Brazilsales-brazil@smartrac-group.comsales-latinamerica@smartrac-group.com |   | Sales Middle East and Africasales-middleeast-africa@smartrac-group.com |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|

----

| Overview                                             |
|------------------------------------------------------|
| Operating Frequency                                  |
| 125 kHz (Low Frequency)                              |
| 13.56 MHz (High Frequency)                           |
| Ultra High Frequency                                 |
|     US 902-928 MHz                    |
|     EU 865-878 MHz                    |
|     JP 952-954MHz                     |
| or other customized bandwidths                       |
| Operating Temperature                                |
| -35°C to +50°C                             |
| Material                                             |
| PVC, PC, PET-G, Teslin®                         |
| Standard                                             |
| ISO 14443, ISO 15693, ISO 7810, ISO 18000            |
| Applications                                         |
| - Access Control                                     |
| - Public Transportation                              |
| - Toll Collection                                    |
| - Secure Identification                              |
| - Customer loyalty programs                          |
| - ePayment                                           |
|                                                 |
| Benefits                                             |
| - Available in LF, HF and UHF and with various chips |
| - Easy integration into existing technology          |
| - Long life time                                     |
| - High surface quality                               |

----

|               | Operating                |                                                                  |                         |                                                     |                                                |
|--------------------|--------------------------|-----------------------------------------------------------------------|------------------------------|----------------------------------------------------------|-----------------------------------------------------|
| Dimension          | Temperature              | Frequency                                                             | Material                     | Options                                                  | Available ICs*                                      |
|               |                     |                                                                  |                         |                                                     |                                                |
| 85.6 x 54 x 0.8 mm | -35°C to +50°C | 125 kHz                                                               | PVC, PC, PET-G, Teslin® | High and low - coercivitymagnetic stripesComposite cards | Atmel, EM Marin, NXP                                |
|               |                     |                                                                  |                         |                                                     |                                                |
| 85.6 x 54 x 0.8 mm | -35°C to +50°C | 13.56 MHz                                                             | PVC, PC, PET-G, Teslin® | High and low - coercivitymagnetic stripesComposite cards | EM Marin, Infineon,Inside, LEGIC, NXP, SAMSUNG,Sony |
|               |                     |                                                                  |                         |                                                     |                                                |
| 85.6 x 54 x 0.8 mm | -35°C to +50°C | US 902-928 MHzEU 865-878 MHzJP 952-954MHzor othercustomizedbandwidths | PVC, PC, PET-G, Teslin® | High and low - coercivitymagnetic stripesComposite cards | Alien, Impinj                                       |

| For further information, please contact: SMARTRAC TECHNOLOGY Pte. Ltd.6 Greenleaf Walk, Amsterdam Building 2-8Singapore 279227Phone +65 6469 3780Fax +65 6469 0867cards@smartrac-group.com |   | Sales EuropeSMARTRAC TECHNOLOGY GmbHAlbstrasse 1470597 Stuttgart, Germanysales-europe@smartrac-group.com Sales East AsiaSMARTRAC TECHNOLOGY Ltd.142 Moo1, Hi-Tech Industrial EstateTambon Ban Laean, Amphor Bang-pa-in,Phra Nakorn Sri Ayutthaya13160 Thailandsales@smartrac-group.com |   | Sales AmericaSMARTRAC TECHNOLOGY US Inc.1546 Lake Drive WestChanhassen, MN 55317, USAsales-america@smartrac-group.com Sales Latin AmericaSMARTRAC TECNOLOGIA INDUSTRIAE COMERCIO DA AMAZONIA LTDAAvenida Acai 875-C69075-020 Manaus, Brazilsales-brazil@smartrac-group.comsales-latinamerica@smartrac-group.com |   | Sales Middle East and Africasales-middleeast-africa@smartrac-group.com |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|

----

| OTI Products list annex 2.8.1 |
|-------------------------------|

| Po Number | Item | Product name | Description | Project Code | OTI Specific Product |
|-----------|------|--------------|-------------|--------------|----------------------|

| 9197  | 10049083     | CLCard        | CL Mifare Card MF1, S50 -1K, **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** , A/W/White me00520                                     | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |
|-------|--------------|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|
| 9441  | OSP_10057842 | Smart sticker | OSP_ILP, VP, RENESAS,Hercules JC V2.1., NOA-3, Smart sticker F-1mm, **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**, me00524         | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | OTI Specific Product |
| 9538  | OSP_10055052 | CLCard        | OSP_CL Card 8K/B (WR08) Hercules WHT/AW WITHOUT MGS, MOD3 me00415                                                                                                                                                                         | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |
| 10132 | OSP_10057834 | Smart sticker | OSP_ILP, VP,RENESAS,Hercules JC V2.1., NOA-3, Smart Sticker F-1mm,**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**  me00493 | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | OTI Specific Product |
| 10184 | 10052220     | Inlay         | Double 3x8 PC Inlay (CB4-ST19NR66) (me01013)                                                                                                                                                                                              | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |
| 10281 | OSP_10042685 | inlay         | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**  1up pos. Smart Sticker me00418                                            | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | OTI Specific Product |
| 10307 | 10049064     | CLCard        | Mifare 1K s50, CL card with ONE-side printing/ZTZ me00456                                                                                                                                                                                 | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |
| 10350 | OSP_10057502 | Inlay         | OSP_ILP, VP, RENESAS,Hercules JC V2.1. 4LE-S, NOA-3                                                                                                                                                                                       | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |

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| Po Number | Item | Product name | Description | Project Code | OTI Specific Product |
|-----------|------|--------------|-------------|--------------|----------------------|

| 10355 | 10049070     | Smart sticker | 1K, CL, MOA2,S50 Smart sticker, GSB me00508                                                                                                                                                                                                 | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | OTI Specific Product |
|-------|--------------|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|
| 10386 | OSP_10057843 | Smart sticker | OSP_ILP, VP, RENESAS,Hercules JC V2.1., NOA-3, Smart sticker F-1mm, **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** , me00541          | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | OTI Specific Product |
| 10419 | OSP_10052033 | inlay         | OSP_POS from Inlay 2x4 **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**, CR80 Small, Mifare-1, 1K,MOA2,ME00221(2-3)                     | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |
| 10455 | 10049053     | CLCard        | CL Card Mifare 1k, IC S50, **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.** |                 |
| 10539 | OSP_10049076 | Smart sticker | OSP_Mifare 1K,CL,MOA2,S50 Smart sticker,F025,**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** me00506                                   | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | OTI Specific Product |
| 10587 | 10049000     | CLCard        | CLCard Mifare 1K WHT/WHT me00400                                                                                                                                                                                                            | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | OTI Specific Product |
| 10709 | OSP_10053550 | Inlay         | OSP_POS from Passport Inlay **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**  1up, ICA066 BR53,ME00223                        | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |
| 10783 | OSP_10047342 | CLCard        | OSP_C\L Card OT88202RF ST19WR08DR52POMA **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**,White/White, me00481, SN Range 206600 - 207100 | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |

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| Po Number | Item | Product name | Description | Project Code | OTI Specific Product |
|-----------|------|--------------|-------------|--------------|----------------------|

| 10814 | OSP_10057840 | Smart sticker        | OSP_ILP, VP, RENESAS,Hercules JC V2.1., NOA-3, Smart sticker F-1mm,**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**, me00522  | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | OTI Specific Product |
|-------|--------------|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|
| 10975 | OSP_10054155 | CLCard               | OSP_CL Card 8K/B (ST19WR08) **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** WHT/A.W+MGS (me00449)                            | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |
| 11251 | OSP_10049052 | CLCard               | OSP_CL Card Mifare 1K ICS50,with signature stripe , **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** (me00256)                | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |
| 11252 | OSP_10055013 | CLCard               | OSP_CL white card Hercules ST19WR08 (me00444)                                                                                                                                                                                     | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |
| 11253 | OSP_10052065 | Inlay                | OSP_Pos. from inlay 4x7 , Mifare 1k, CL/M, Full size ant.,**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** me00558            | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |
| 11268 | OSP_10052066 | Inlay                | OSP_Pos. from inlay 4x7 , Mifare 4k, CL/M, Full size ant.,**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** me00563            | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |
| 11298 | OSP_10057845 | Smart sticker        | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** 28x48 Extractable Sticker 4x7 Inlay                                          | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | OTI Specific Product |
| 11448 | OSP_10038260 | CLCard               | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** 2009 ID1 PET, Hercules ePass 66K, contactless, ST19NR66B                     | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | OTI Specific Product |
| 11449 | OSP_10054127 | Dual interface cards | OSP_C/CL Card,CALYPSO,Type B,AW/A.W, **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** me00553                                 | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |
| 11483 | 10049055     | Smart sticker        | Mifare 1K,CL,S50 Smart sticker, PROX me00564                                                                                                                                                                                      | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | OTI Specific Product |
| 11530 | OSP_10057846 | Smart sticker        | OSP_ILP, VP, RENESAS,Hercules JC V2.1., NOA-3, Smart sticker F-1mm,**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.** | OTI Specific Product |
| 9634  | OSP_10057842 | Smart sticker        | OSP_ILP, VP, RENESAS,Hercules JC V2.1., NOA-3, Smart sticker F-1mm, **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**, me00524 |                                                                                                                                                 | OTI Specific Product |

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| Po Number | Item | Product name | Description | Project Code | OTI Specific Product |
|-----------|------|--------------|-------------|--------------|----------------------|

| 9776   | OSP_10055060 | CLCard        | CL Card Type B+M (1K),**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**,A/W+A/W me00419                     | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | OTI Specific Product |
|--------|--------------|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|
| 9861   | OSP_10052064 | Inlay         | OSP_Pos. from inlay 5x6 , Mifare 1k, CL/M, Full size ant.,**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.** |                 |
| 9867   | 10049084     | Smart sticker | Mifare 1k,CL,MOA2,S50 Smart sticker,F025, **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** me00549         | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | OTI Specific Product |
| 9934   | OSP_10054102 | CLCard        | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** Card 3LE, 2K/B NOA3-WR-02,VM_1_2                          | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |                 |
|   | ???          | Smart sticker | Renesas sticker ;ID1 Punch out card                                                                                                                                                                            |                                                                                                                                                 | OTI Specific Product |

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|   | · | MCT will provide all technical documentation on the HERA-process and the HERA-equipment to SMARTRAC; |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | On request by SMARTRAC, MCT will build up to two HERA lines. These lines will be built at MCT. Test runs and acceptance will be done at MCT. Installation will be done at SMARTRAC.  SMARTRAC shall pay to MCT for these machines a purchase price equivalent to **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On request by SMARTRAC, MCT will build up to ten manual HERA stations. These lines will be built at MCT. Installation at SMARTRAC. SMARTRAC shall pay to MCT for these machines a purchase price equivalent to **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | MCT will allow SMARTRAC personnel to be trained at MCT; |
|--------|--------|---------------------------------------------------------|

|   | · | MCT will send a qualified person to SMARTRAC to training (up to two weeks); |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | MCT will use best efforts to support this technology transfer. |
|--------|--------|----------------------------------------------------------------|

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|   | SMARTRAC N.V.                            |
|--------|------------------------------------------|
|   |                                     |
|   | By:  /s/ Dr. Christian Fischer |
|   |                                     |
|   | Printed Name: Dr. Christian Fischer      |
|   |                                     |
|   | Printed Title: CEO                       |
|   |                                     |
|   | By:  /s/ Manfred Rietzler      |
|   |                                     |
|   | Printed Name: Manfred Rietzler           |
|   |                                     |
|   | Printed Title: CTO                       |
|   |                                     |
|   | ON TRACK INNOVATIONS LTD.                |
|   |                                     |
|   | By: /s/ Oded Bashan                      |
|   |                                     |
|   | Printed Name: Oded Bashan                |
|   |                                     |
|   | Printed Title: CEO                       |
|   |                                     |
|   | By: /s/ Tanir Horn                       |
|   |                                     |
|   | Printed Name: Tanir Horn                 |
|   |                                     |
|   | Printed Title: CFO                       |

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