Document:

exhibit_4-12.htm

Exhibit 4.12

 

**CONFIDENTIAL PORTIONS HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR 

CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION (THE “COMMISSION”).**

ASSET PURCHASE AGREEMENT

ASSET PURCHASE AGREEMENT, dated as of December 22nd, 2009 (the “APA”), by and among Millennium Card ́s Technology Limited ("MCT"), a Hong Kong corporation and On Track Innovations Ltd., as Israeli corporation ("OTI") on the one hand (where MCT and OTI shall be referred hereto as the "Seller"), and SMARTRAC Singapore Trading PTE, a Singapore corporation ("Buyer") on the other hand.

 

WHEREAS,

 

	
(1)

	
MCT with business located at and incorporated in Hong Kong, a 100% subsidiary of OTI, is engaged in the business of transponders and smart card machines manufacturing and is the holder of 99.5% shares of Millennium Card ́s Technology (SZ) Limited.

 

	
(2)

	
SMARTRAC N.V. (“SMARTRAC”) is a worldwide leading transponder manufacturer and OTI is a worldwide leader in development of smart-card based products and solutions.

 

	
(3)

	
Buyer is a private limited company incorporated in Singapore. Buyer is a 100 % subsidiary of SMARTRAC Brazil B.V. which is a 100 % subsidiary of SMARTRAC N.V.

 

	
(4)

	
“SMARTRAC Group” means SMARTRAC and any and all companies in which SMARTRAC directly or indirectly holds or has the right to acquire 50 % or more of the shares and/or voting rights and/or comparable kind of participation.

 

	
(5)

	
“OTI Group” means OTI and any and all companies in which OTI directly or indirectly holds or has the right to acquire 50 % or more of the shares and/or voting rights and/or comparable kind of participation.

 

	
(6)

	
“Machinery” means (i) those machines used by MCT subsidiary and OTI exclusively or primarily for the Business (as defined in Section 2.1), as specified in Attachment 2.2.1; and (ii) those machines produced by MCT subsidiary for the sale to third parties with respect to the Business, as specified in Attachment 5.1.

 

	
(7)

	
“Signing Date” is the date of signing of this Asset Purchase Agreement.

 

	
(8)

	
“Closing Date” is defined in Section 9.1.

 

	
(9)

	
“Sold Assets” means all assets as defined in Article. 2.

 

	
(10)

	
“Working Day” means a working days excluding public excluding Saturdays, Sundays and holidays in the state of Delaware USA.

 

  

  

  

 

	
(11)

	
“Delivery Date” is the respective delivery date of the Sold Assets.

 

	
(12)

	
Buyer and Seller collectively the “Parties” and each a “Party”.

 

Article 1 Scope of this Agreement

 

	
1.1.

	
SMARTRAC, OTI and MCT entered into an agreement dated September 15, 2009 (“Agreement”) with respect to the acquisition of certain assets of MCT subsidiary, some additional assets from OTI, the shutdown of MCT subsidiary and a non competition obligation, supply agreement and further issues. Further on SMARTRAC, OTI and MCT entered into a First Amendment to the Agreement, as of November 5, 2009 ("First Amendment"). The subject matter of this Asset Purchase Agreement (“APA”) is to cover the sale and purchase of assets of Seller by Buyer as specified herein.

 

	
1.2.

	
The Sold Assets which are owned by MCT as the date hereof ("MCT Sold Assets"), were owned by MCT subsidiary immediately prior to the Closing Date. On request of OTI, Buyer agrees to buy MCT Sold Assets not from MCT subsidiary but from MCT who is the owner thereof as the date hereof. Therefore immediately prior to the Closing Date, MCT shall be the sole owner of all the MCT Sold Assets and respective assumed liabilities including without limitation all rights of whatsoever nature relating to such assets, and also including such obligations, but only such obligations, as are specially provided for in this APA to be assumed by Buyer, said acquisition to be accomplished by MCT in order that it will be able to comply with this APA at any time. MCT confirms that it does not hold any other assets related to the Business as of the Closing Date.

 

	
1.3.

	
Buyer does not buy any assets from MCT which MCT did not purchased from MCT subsidiary in connection with the assumption of the Business immediately prior to the Closing Date, provided that MCT has no relation to the Business apart from the conclusion of the said assignment and assumption as of the Closing Date. MCT did not and does not own assets and is not party to material contracts and agreements with respect to the Business before transfer from MCT subsidiary as of the Closing Date.

 

Article 2 Sold Assets and Assumed Liabilities

	
2.1.

	
On the terms and subject to the conditions set forth in this APA, at the Closing, Buyer shall, in consideration for the Purchase Price, purchase, acquire and accept from Seller and Seller shall sell, transfer, assign, convey and deliver to Buyer all of Seller's rights, title and interest in, to and under Sold Assets (as defined below) which were used in the production of transponder using wire embedded technology, module packaging and the production of Machinery used to produce transponder products contact cards and testing equipments by MCT subsidiary immediately prior to the Closing Date (collectively, the “Business”).  For the avoidance of doubt, assets not included herein and/or not related to the Business are excluded from the scope of this APA.

 

  

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2.2.

	
"Sold Assets" shall mean all of the following assets which were used for the Business by MCT subsidiary and OTI immediately prior to the Closing Date as listed below (in Sections 2.2.1 through 2.2.6):

	
2.2.1.

	
The tangible assets, including technical and R&D equipment, machineries, office and other equipment and assets under construction which are located in the main factory or in any other plants, offices or other premises, as specified in Attachment 2.2.1.

	
2.2.2.

	
The intangible assets relating exclusively or primarily to the Business set forth in (i) and (ii) of this Subsection 2.2.2. (i) All patents, utility patents, design patents, marks, trade names, domain names, copyrights, computer software programs, licences and other (registered or unregistered) intellectual property rights (and any applications therefore) relating exclusively or primarily to the Business, as listed in Attachment 2.2.2(i); and (ii) the inventions, technology, process descriptions specifications, drawings, software, research and development data, formula or other know-how, trade and business secrets relating exclusively or primarily to the Business as listed in Attachment 2.2.2(ii) (collectively, the “Intellectual Property Rights”).

 

For clarification, the foregoing includes documents, specifications, drawings and software for Machinery manufacturing, production, process and products sold or used by MCT subsidiary prior to the Closing Date, to the extent owned by MCT subsidiary and not subject to confidentiality agreement with third parties.

	
2.2.3.

	
The raw materials, supplies, work in progress, finished goods and other inventories collectively (“Inventories”) relating exclusively or primarily to the Business as listed in Attachment 2.2.3. Seller and MCT subsidiary shall have the right to consume the Inventories until the closing of MCT subsidiary according to Article 7, without any payment to the Buyer.

	
2.2.4.

	
All rights relating exclusively or primarily to the Sold Assets and all claims against third parties relating to the Sold Assets (to the extent they exist at the closing date or later), including rights under manufacturers and vendors warranties.

	
2.2.5.

	
Technical books and records of the Business and other technical documents and data (whether in hard copy or electronic format) used or available in the Business, as listed in Attachment 2.2.5, including technical drawings, technical manuals, sales and promotional material, lists of (present or former) customers and suppliers (“Books and Records”), except for those financial Books and Records and except further to Books and Records which are required to be retained by Seller and MCT subsidiary under any applicable law, regulation, directive, binding guideline or rule, or decree, order or decision of any court or governmental authority (as in effect at any time and applicable in any jurisdiction) or agreement or which cannot be technically separated from  any other file or data.

 

  

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2.2.6.

	
Agreements (“Assumed Agreements”) in effect as of the Closing Date including contracts and arrangements, relating exclusively or primarily to the Business to which Seller or MCT subsidiary is a party as listed in Attachment 2.2.6.

	
2.3.

	
For the avoidance of doubt, the following assets related to the Business of MCT subsidiary and Seller shall be excluded from the sale and transfer to Buyer pursuant to this APA ("Excluded Assets"):

	
  

	
2.3.1.

	
Cash on hands, trade receivables, cheques, deposits with banks, financial receivables or other cash equivalents, shares and interest in any companies and partnerships or securities.

	
  

	
2.3.2.

	
Any claims for the refund of any taxes, social security contributions or other public charges (together with any penalties, fines, interests or addition thereto), taxes relating to any tax assessment period ending on the Closing Date.

	
  

	
2.3.3.

	
Any accounting documentation.

	
  

	
2.3.4.

	
All purchase price consideration to be paid by Buyer to Seller pursuant to the terms of this APA, and all of Seller's contractual rights in and to this APA and the ancillary agreements.

	
  

	
2.3.5.

	
All amounts paid to MCT subsidiary and/or Seller from customers in accordance with Section 7.2 below.

	
  

	
2.3.6.

	
All assets not covered by the Sold Assets.

	
2.4.

	

On the terms and subject to the conditions set forth in this APA, at the Closing, Buyer shall assume and acquire effective as of the Closing Date, (collectively the “Assumed Liabilities”) liabilities under the Sold Assets Intellectual Property Rights pursuant to Attachment 2.2.2, and liabilities under the Assumed Agreements pursuant to Section 2.2.6, that arise from facts or circumstances occurring after the Closing Date or that under their terms are required to be performed after the Closing Date, provided that the respective assets were transferred on the Closing Date.

 

Liabilities which arise between the Closing Date and the Delivery Date and which are not in connection with Gemalto as set forth in Section 7.12 below shall be borne by Seller and MCT subsidiary.

 

	
2.5.

	
With respect to Assumed Liabilities pursuant to the sold Intellectual Property Rights, Buyer assumes liabilities, e.g. to pay open fees at the patent and trade mark offices, but Buyer does not assume any license agreements (except for those implied with respect to  products sold by MCT subsidiary), or any other contracts in connection with the Intellectual Property and/or reserves the right, which is in Buyer ́s sole discretion, to enter into litigation or similar proceedings, if any, with respect to the sold Intellectual Property Rights.

 

  

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2.6.

	
Buyer will not assume or be liable for any Excluded Liabilities. “Excluded Liabilities”  shall mean the following liabilities in connection with the Business:

	
  

	
2.6.1.

	
Any liability or obligation relating to an Excluded Asset;

	
  

	
2.6.2.

	
Any liabilities with respect of any and all (i) products sold by MCT subsidiary and/or OTI before the Closing Date; (ii) services performed by MCT subsidiary and/or OTI before the Closing Date or the Delivery Date respectively, except to the extent necessary to perform support, maintenance, warranty and similar obligations as referred to in Section 5.2 below following the Closing Date;

	
  

	
2.6.3.

	
All and any of MCT subsidiary and OTI liabilities to any of their employees or consultants for a period through the Closing Date;

	
  

	
2.6.4.

	
Any liabilities from MCT which MCT did not assumed from MCT subsidiary in connection with the assumption of the Business, provided that MCT has no relation to the Business apart from the conclusion of this transaction. For clarification: MCT does not own assets and is not party to any material contracts and agreements with respect to the Business before the Closing Date (except in those cases, that for convenience purposes, MCT made sales and bought raw materials for MCT subsidiary, provided that in no event MCT held or currently holds any such raw materials); and

 

	
  

	
2.6.5.

	
All liabilities which are not expressly assumed by Buyer.

 

Article 3 Purchase Price and Timing of Payment

	
3.1 

	
The purchase price for the Sold Assets (“Purchase Price”) is Euro 8.5 million, Euro 5 million are already paid. The reminder amount of Euro 3.5 million shall be paid in eight equal end-quarterly instalments (end of March, June, September and December of the applicable year) of Euro 437,500 each in cash, beginning on March 31st, 2010

	
3.2

	
All payments shall be made to the below listed account of OTI:

 

	 	
Account holder:   

	
On Track Innovations Ltd.

	 	
Name of the Bank:

	
Bank Leumi Le Israel BM

                              

**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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3.3

	
Each Party shall bear its own tax due (if any) in connection with the transaction.

 

Article 4 Indemnification

Seller shall indemnify and hold harmless Buyer, its stockholders, successors, assigns, officers, directors, employees, agents and representatives (“Indemnitees”) from and against any and all liabilities and obligations of any nature whatsoever (including without limitation reasonable attorneys’ fees) (collectively, “Losses”) incurred by any one or more of the Indemnitees to the extent that such Losses relate to, arise out of, or are based upon (a) Excluded Liabilities, (b) failure of any of Seller's representations, warranties and guarantees (which guarantees are specified in Article 6, Section 7.6, second paragraph in Section 7.12 and Section 7.14) to have been true and correct when made, (c) failure of Seller to comply with any covenant or agreement in this APA, (d) taxes which are payable by Seller or MCT subsidiary as a result of the sale of the Sold Assets or the assumption of the Assumed Liabilities, (e) the ownership, use or conduct of the Business prior to the Closing Date, and (f) the ownership and use of the Sold Assets prior to the date on which the respective Sold Assets were delivered to Buyer (whether asserted prior to, at, or after that final delivery of the Sold Assets).

Buyer shall not be obliged and its rights under this APA are not dependent on any inspection duties and notification obligation in connection with Seller indemnification obligation above.

 

Article 5 Machine Sale Agreements

	
5.1.

	
Attachment 5.1. contains a list of all sale agreements for the Machinery sold by MCT (“Machine Sale Agreements”) for which Buyer will provide (or cause other entity within SMARTRAC Group to provide) services according to Section 5.2 below.

	
  

	 

	
5.2.

	
Notwithstanding Section 2.4 above with respect to Machine Sale Agreements Buyer assumes liabilities for products shipped prior to the Closing Date in accordance with the Machine Sale Agreements ("Covered Machinery"), provided, however, that Buyer assumed liability referred to in this Article shall be limited to the provision of services and for warranties (including spare parts and consumables) for Covered Machinery to third parties raised after the Closing Date, in the amount of cumulated Euro 200,000, including spare parts and consumables.

 

In case that further warranty or guarantee claims exceed a cumulative amount of Euro 200,000 raised against Seller or Buyer, Buyer shall be obliged to handle such claims, if and to the extent that Buyer gets reimbursed for all cost and expenditures (including spare parts and consumables) by Seller.

 

  

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Buyer shall charge MCT for such expenses based on direct cost of labour plus 35% gross margin, where spare parts and consumables shall be charged at cost.

Article 6  Representations and Warranties of Seller

Seller (jointly and severally) hereby guarantees and represents to Buyer that the statements set forth hereinafter are true and correct as of the Closing Date (except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and correct on and as of such earlier date)) or as of any other date explicitly referred to below:

	
6.1.

	
The purchase contract between MCT and MCT subsidiary in order to conclude the transaction contemplated by this APA is complete, valid, enforceable and sufficient to enable MCT to fulfil its obligation under this APA in every aspect.

	
6.2.

	
Seller is the sole and unrestricted legal and beneficial owner of the Sold Assets and has the unrestricted right to dispose all of such Sold Assets sold in accordance with this APA.

	
6.3.

	
The statements in the “Whereas” No 1 of this APA in relation to OTI, MCT and MCT subsidiary are true, complete and accurate in every respect.

	
6.4.

	
The Sold Assets to be transferred to Buyer will be free and clear of all liens, security interest and encumbrances of any nature whatsoever at the time of transfer.

	
6.5.

	
Except for the implied license provided to the purchasers of the Machineries, the Intellectual Property Rights are free of third party rights; Seller has not granted a licence on the Intellectual Property Rights to a third party, except of the right to use goods and products sold by Seller. Seller is under no obligation to grant such rights.

	
6.6.

	
There exists no pre-emptive rights, rights of first refusal, options or other rights of any third party to purchase or acquire any of the Sold Assets or assume any of the Assumed Agreements.

	
6.7.

	
To the Seller's knowledge the validity of the sold Intellectual Property Rights has not been challenged by any third party in writing and Seller is not aware of any circumstances which would give rise to such challenge, other than references cited in official Patent Office examination. None of the Intellectual Property Rights is subject to any pending judgment, injunction, order or decree issued against OTI Group entity restricting the use thereof by it or restricting the licensing thereof by it to any third party.

	
6.8.

	
Except as previously alleged by SMARTRAC Group, to the best knowledge of Seller there has not been any claim in writing that the products based on Intellectual Property Rights infringe upon any intellectual property right of any third party.

	
6.9.

	
The Sold Assets and the Assumed Liabilities constitute materially all of the assets (whether tangible or intangible, including information, technology and know-how) used or held for use in the Business and are sufficient and adequate to carry on the Business as a whole in substantially manner and scope it has been conducted in the last year period prior to August 2009. No Material Adverse Effect has occurred since August 2009 until the Closing Date of this APA.  For the purpose of this Section, a "Material Adverse Effect" means any event, change, effect, condition or circumstance that, when taken individually or together with all other adverse events, changes or effects, is (a) to be materially adverse to the Sold Assets, as a whole; or (b) to be materially adverse to the Business as a whole; other than any change, effect, event, occurrence, condition, development or state of facts arising from or relating to changes or conditions generally affecting the industries or markets related to the Business.

 

  

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6.10.

	
Seller has not sold or transferred assets which belong or should belong to the Business between August 23, 2009 and the Closing Date (“Period”) outside the course of ordinary Business. The Machinery and any manufacturing equipment which were sold during the Period are completely listed in Attachment 6.10.

	
6.11.

	
All tangible assets specified in Section 2.2 are located at MCT subsidiary production site in subsidiary, except to the extent that the transfer of these assets to MCT has begun, in which case such transferred assets are at MCT ́s facility in Hong Kong or in transit thereto.

	
6.12.

	
No Person has acted, directly or indirectly, as a broker, finder or financial advisor for OTI Group in connection with the transactions contemplated by this Agreement that would result in the obligation of Buyer or SMATRAC Group to pay any finder’s fee, brokerage fee, commission or similar payment in connection with the transactions contemplated hereby,

	
6.13.

	
To the best of Seller's knowledge, all written information made available to the Buyer or its advisors by Seller and MCT subsidiary prior to signing of this APA and in connection thereto is complete, accurate and not misleading in all material respect. None of such information is misleading or contains any material omissions regarding the Sold Assets, the Business, the Assumed Liabilities or the Assumed Agreements.

 

Article 7 Shut Down of MCT subsidiary,

Sale of Products and Delivery of Sold Assets

	
7.1.

	
Seller undertakes to cause MCT subsidiary to shut down its business and operations in accordance with the terms and provisions set forth on Attachment 7.1 attached hereto (“Shut-Down Concept”), including a time schedule for termination of operation of MCT subsidiary, and a change of its name to a name that does not include “MCT” or “Millennium” or “Millennium Card” or any variations on those words. Seller will cause MCT subsidiary to fully comply with all of the provisions of this Article. MCT shall not file for bankruptcy or insolvency protection or any similar protection from creditors for the period ending five years after the date on which all of the Sold Assets have been transferred to Buyer.

 

  

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7.2.

	
Sale of Products:

	
7.2.1.

	
With effect as of Closing Date but not later than December 22nd, 2009, Seller shall cause MCT subsidiary not to qualify and not to sell any products or provide services to additional customers apart from (i) services and products in the framework of the existing supply contracts with Gemalto and Oberthur Card System until assigned to SMARTRAC Group, or (ii) as permitted (and to the extent permitted) pursuant to Section 7.2.2 below. Notwithstanding the foregoing, it is hereby clarified that MCT subsidiary shall be entitled to complete all work in progress through the end of February 2010. If MCT subsidiary does not complete said work in progress by the end of February 2010, SMARTRAC, Seller and MCT subsidiary will use their best efforts to find an amicable solution for the production of the products not produced by end of February 2010.

	
7.2.2.

	
Following December 22nd, 2009, MCT subsidiary shall have the right to qualify and manufacture only those products ordered by OTI that SMARTRAC Group is not ready to manufacture until such time that SMARTRAC Group acknowledges in writing to MCT subsidiary and OTI that it is ready to manufacture these products in its premises. Any order received by MCT subsidiary after December 22nd, 2009, from OTI, MCT subsidiary shall therefore be sent to Buyer as a copy. Following receipt of such copy Buyer shall have a maximum of 48 hours to notify MCT subsidiary whether it is ready to perform said order. If Buyer has notified MCT subsidiary within the said 48 hours that SMARTRAC Group is ready to perform, the order shall be performed solely by SMARTRAC Group. If Buyer fails to notify MCT subsidiary that SMARTRAC Group is ready to perform said order or notifies that SMARTRAC Group is not yet ready to perform said order within said 48 hours (where no response shall also be deemed as failure), the fulfilment of the said order shall be with Seller and/or MCT subsidiary solely.

 

Notwithstanding the provision of Section 16.4, all notices pursuant to this Section 7.2.2 shall be sent by email to the following addresses and shall be deemed to have been duly received at the time sent by the sending party.

 

SMARTRAC Group email: **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**

 

OTI Group emails: **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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7.2.3.

	
During such time and until Buyer is ready to perform orders according to Section 7.2.2., Seller and MCT subsidiary shall have the right to make use of the Sold Assets in their premises free of charge (including the intangible assets, Section 2.2.2.) in order to fulfil said orders.

	
7.2.4.

	
The Parties shall use their utmost efforts to transfer the manufacturing capabilities to Buyer as soon as practicable, pursuant to the terms herein.

 

	
7.3.

	
MCT subsidiary shall cease the production for Oberthur Card System until end of April 2010.

	
7.4.

	
Starting April 2010, Buyer shall have the right to appoint one representative having access (but not authority) to all decisions relating to the business development of MCT subsidiary in order to supervise the proper shut down of MCT subsidiary.

	
7.5.

	
Any employment offer to MCT subsidiary employees by Buyer shall be subject to a prior coordination and agreed communication by the Parties.

	
7.6.

	
Seller, MCT subsidiary and Buyer have specified and reviewed the Sold Assets during the specification process according to the First Amendment ("Specification Process"). During the Specification Process, Buyer reviewed whether the Sold Assets are complete, in proper workable condition, fully functional and fit for their intended use. Seller guarantees that all Sold Asset which have been defined and marked as “A” (“A-Assets”), as specified in Attachment 7.6, will be transferred outside of PRC.

	
7.7.

	
During the Specification Process and according to Article 4 subs. K of the “First Amendment", Seller, MCT subsidiary and Buyer prepared an asset status list (“Asset Status”). The Asset Status list is attached as Attachment 7.7. The Asset Status contains the present "as-is" condition of all other Sold Assets other than the A-Assets as documented in the Specification Process.

	
7.8.

	
For the A-Assets contained in the Asset Status, Seller undertakes to repair defective assets and/or substitute missing A-Assets until the Delivery Date as specified in the Asset Status. In case Seller fails to comply with this obligation with regard to A-Assets, Buyer shall be entitled to reduce the purchase price according to book value of the relevant A-Asset in the Financial Statements of MCT subsidiary or OTI, as the case may be (“Book Value”).

 

  

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Furthermore, the Asset Status contains the allocation of the Sold Assets in three Groups as outlined below. Seller undertakes to deliver the Sold Assets according to the below outlined delivery schedule. It is understood that the transfer of the following assets shall be subject to the approval by the respective Chinese authorities and that the dates set forth below do not take into consideration the time period, which is unknown, necessary to obtain such approvals:

	
  

	
·

	
Group 1 = includes all Sold Assets which shall be packaged and to which transfer process to Buyer shall begin immediately following the Closing Date of this APA, but not later than the end of February 2010.

	
  

	
·

	
Group 2 = includes all Sold Assets, listed in Attachment 7.8., which facilitate the obligations of the existing agreement with Gemalto and Oberthur Card System (in accordance with Section 7.3 above) with whom Seller and/or MCT subsidiary have a binding supply agreement which is not assignable without the consent of Gemalto.

	
  

	
·

	
Group 3 = includes all Sold Assets, listed in Attachment 7.8., the transferral of which is subject to additional approval by Chinese authorities (“Additional Approval”).

 

	
7.9.

	
Seller and MCT subsidiary shall make commercially utmost efforts (with its then existing personnel) in gaining all necessary approvals from the respective Chinese authorities in order to enable the transfer of the Sold Assets specified in Group 1 to 3, as outlined in the Shut-Down Concept but (with no guarantee except for A-Assets) at the latest until the end of the shut down period of MCT subsidiary (“Shut-Down Period”). All costs and expenses in connection with this approval shall be borne by Seller.

	
  

	
In case and to the extent that MCT is not able to gain the Additional Approval for the assets included in Group 3 until the end of the Shut-Down Period, Seller shall store these assets in a warehouse named by Buyer at Buyer's expense.

	
7.10.

	
Seller shall start the transfer the Sold Assets included in Group 2 without undue delay to Buyer at the latest of (i) Gemalto has agreed to assign the supply agreement to Buyer, or agreed to subcontract it or to enter into another agreement to release Seller and/or MCT subsidiary from their obligations towards Gemalto, or (ii) such time that Buyer is ready to perform OTI orders as set forth in Section 7.2 above.

	
7.11.

	
In case Gemalto denies the assignment of its supply agreement with MCT subsidiary and Seller to Buyer prior to the expiration date of such agreement (until March 18, 2011), the Sold Assets included in Group 2 shall be transferred to Buyer immediately following March 18, 2011, provided that Seller or MCT subsidiary has obtained approval of the Chinese authorities for such transfer (the term between April 1st, 2010 and March 18th, 2011 shall be referred hereto as the “Transition Phase”)

 

  

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7.12.

	
During the Transition Phase, MCT subsidiary and Seller shall be entitled to perform the supply agreement with Gemalto by using their best effort but in good faith towards Gemalto to reduce business with Gemalto. If at all MCT subsidiary and Seller have to perform the supply agreement with Gemalto during the Transition Phase, the reasonable costs incurred during such period (after deducting the applicable revenues) as reflected in MCT subsidiary and Seller financial statements (“Financial Statements”) (where such costs do not serve any other customer and intercompany charges, but including necessary overhead) shall be borne equally between MCT subsidiary and Seller on one hand and Buyer on the other hand and paid by Buyer following the receipt of a cost report of the respective month provided by Seller; however with a cost limitation amounting and cumulated to Euro 500,000 for Buyer. The proceeds deriving from the supply agreement with Gemalto shall be entered into the Financial Statements of MCT subsidiary and Seller and shall reduce the cost for performing the services for Gemalto.

 

Nevertheless, during the Transition Phase, MCT subsidiary may serve not only Gemalto supply agreement, but also other customers (if permitted pursuant to Section 7.2 above), in which case MCT subsidiary and Seller shall bear all costs and shall have the rights to all revenues in connection with such other customers.

In case that Buyer assumes the supply agreement with Gemalto and Gemalto has agreed to the assumption, Seller guarantees that all products to be supplied under this supply agreement have a gross profit margin. Further on the Parties have to agree in coordination with Gemalto on the date to which the assumption shall be effected, but in any case not before the Closing Date.

Buyer does not assume warranty and guarantee liabilities for products shipped prior to the date the assumption becomes effective.

 

	
7.13. 

	
All title (free of third party rights) of all Sold Assets including the Sold Assets of Group 1, and 3 shall be transferred (free of third party rights) to Buyer on the Closing Date automatically. The title of the Sold Assets of Group 2 shall pass to Buyer after approval of Gemalto and/or Oberthur Card System (subject to Section 7.3 above), but in any case by the end of March 2011 at the latest.

 

  

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7.14.

	
Seller guarantees additionally:

	
  

	
7.14.1

	
To deliver and ship the A-Assets in the technical and functional state as documented and evaluated during the Specification Process in the Asset Status subject to sub-section 7.8 above, and subject to ordinary wear and tear. If this is not the case for the said assets, Seller shall be obliged to repair such defective assets and/or substitute such missing assets before delivery to Buyer to return it to be in the same condition as documented in the Asset Status subject to ordinary wear and tear. If Seller fails to comply with this obligation with regard to A-Assets, Buyer shall be entitled to reduce the purchase price according to respective Book Value;

	
  

	
7.14.2

	
To deliver and ship all other assets (not A-Assets) in the same "as-is" condition as documented in the Asset Status, subject to normal wear and tear. If this is not the case for the said assets, Seller shall be obliged to repair such defective assets and/or substitute such missing assets before delivery to Buyer to return it to be in the same condition as documented in the Asset Status. In case Seller fails to comply with this obligation with regard to said assets, Buyer shall be entitled to reduce the purchase price according to Book Value.

	
7.15.

	
For the avoidance of doubt, Buyer shall not be entitled to receive any rent, license or other fee with regards to the Sold Assets (Group 1, Group 2 and Group 3) still in possession of MCT subsidiary or Seller during the Transition Phase.

	
7.16.

	
Seller's obligations hereunder regarding pack and ship of the Sold Assets shall be to a production location named by Buyer. Buyer reserves the right to alter or amend its direction between Closing Date and shipping date at any time. The packing costs shall be borne by Seller solely. The shipping cost shall be shared 50/50 between Seller and Buyer until final destination.

	
7.17.

	
The Parties shall schedule the transfer of the Sold Assets as soon as practicable due to the time schedule outlined in this Article 7 in order to minimize the business impact on both Parties.

 

  

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Article 8 Representation and Warranties of Buyer

 

	
8.1

	
Buyer will have prior to the Closing Date sufficient funds to enable it to consummate the transactions contemplated herein and comply with its financial undertakings.

 

	
8.2

	
No Person has acted, directly or indirectly, as a broker, finder or financial advisor for the Buyer or to Buyer's knowledge to SMARTRAC Group in connection with the transactions contemplated by this Agreement that would result in the obligation of Seller to pay any finder’s fee, brokerage fee, commission or similar payment in connection with the transactions contemplated hereby.

 

Article 9 Closing Date

	
9.1.

	
“Closing Date” shall be the date on signing of this APA.

	
9.2

	
The Parties confirm that no closing conditions are required.

 

Article 10 Covenants

	
10.1.

	
From the Closing Date on, Seller shall cause MCT subsidiary to conduct and shut down the Business according to the Shut-Down Concept with due care of a prudent businessman and in the ordinary course, consistent with past practice, and use its best efforts to protect the Sold Assets from any damage or casualty loss, preserve intact the business organization of the Business and its relationships with third parties subject to MCT Shenzhen’s ability to do so under the circumstances of  its expected shut-down.

	
10.2.

	
From the Closing Date until the earlier of (i) designation of Buyer’s representative according to Section 7.4 above, or (ii) the shut-down of MCT subsidiary, Seller and MCT subsidiary shall promptly inform Buyer of all events or circumstances which, if existing or known on the Closing Date, would have been reasonably required to be disclosed to Buyer pursuant to Section 6.13 above.

	
10.3.

	
Seller shall comply and shall cause MCT subsidiary to comply with all necessary additional requirements and sign all additional documents, if necessary; e.g. to transfer of patents and trademarks immediately after the Closing Date and at any time upon request of Buyer and comply with all governmental and other regulations in order to effect the proper transfer of all Sold Assets including the Intellectual Property Rights pursuant to Section 2.2.2. and effect the registration of Buyer at the respective Patents and Trade Mark organizations. Buyer shall bear all costs and expenses relating to the transfer of Intellectual Property Rights.

  

14

  

Article 11 Non-Compete

	
11.1.

	
For a period of five years after the Closing Date, Seller shall not in any part of the world directly or indirectly, engage or invest in, own, manage, operate, finance or control, or participate in the ownership, management, operation, finance of, be employed by, associated with or in any manner connected with any business, group, entity and enterprise engaging in (i) the production of transponder using wire embedded technology, and/or (ii) wire embedded dual interface technology, and/or (iii) the production of Machinery as produced by MCT subsidiary prior to the date hereof (hereinafter “Special Business”), and/or (iv) render services or advice relating to the Special Business to any entity. However, the following activities shall be exempted from the covenant not to compete:

	
  

	
a)

	
The acquisition of a non-controlling interest in an entity engaged in the Special Business, not exceeding five percent of the capital and votes; or

	
  

	
b)

	
The acquisition of any business or any interest in an entity or group (exceeding 5% of the capital and votes) provided that the turnover of the Special Business in the total turnover of such entity or business in the fiscal year preceding the acquisition did not exceed 25% of the aggregate turnover of the acquired business, entity or group.

In case of an engagement of Seller in the Special Business, (i) Buyer does not waive rights in pursuing its license rights, and/or any exclusivity arrangements in place with Seller and, (ii) no implied license right and/or exclusivity arrangement is being granted to such Special Business as a result of such engagement. Any failure to act by Buyer does equally not imply the grant of a right derived from its intellectual property or the waiver of any exclusivity arrangements.

	
11.2.

	
Seller acknowledges that the restrictions contained in this Article 11 are fair and reasonable. If, at the time of enforcement of any provision of this Article 11, 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.

	
11.3.

	
In the event of any breach by Seller of any of the provisions of this Article 11, money damages may be inadequate and Buyer would have no adequate remedy at law. Accordingly, notwithstanding anything to the contrary contained in this APA, the Parties agree that Buyer shall have the rights, in addition to any other rights and the obligations under this Article 11, 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 Article 11.

  

15

  

	
Article 12 Limitation Period

The indemnification obligation by Seller pursuant to Article 4 expires five years after the Closing Date.

All other claims of SMARTRAC Group and/or Buyer arising under this APA shall become time-barred upon expiration of a period of 1 year after final installment according to Section 3.2., except as set forth in Article 11 (subject to the limitation therein).

 

Article 13 Undertaking

 

	
13.1.

	
Seller shall not directly or indirectly challenge all and any worldwide wire embedding related intellectual property rights related to inlay production of SMARTRAC Group existing as of the Closing Date, unless in response to a claim made by a member of the SMARTRAC Group.

 

	
13.2.

	
The Parties confirm that they already withdrew finally and irrevocably “with prejudice” all legal proceedings pursuant to Section 2.1 until 2.7 of the Agreement dated September 15th, 2009. The Parties, on behalf of themselves and their affiliates, predecessors, successors, assigns, executors, administrators, and each of their past, present and future officers, directors, employees, parents, subsidiaries, divisions, representatives, shareholders, trustees and agents, hereby release, waive, relinquish, renounce, and discharge each Party, and all of their affiliates, predecessors, successors, assigns, executors, administrators, and each of their past, present and future officers, directors, employees, parents, subsidiaries, divisions, representatives, shareholders, trustees and agents, and direct or indirect customers and vendors to the extent that claims arise from their use or resale of Parties products the use thereof from any and all claims, whether known or unknown, actions, suits, causes of action, liabilities, or controversies, that arise out of or are related to past-patent infringement claims prior to the Closing Date or resulting from activities agreed between the Parties until the shut-down of MCT subsidiary.

 

	
13.3. 

	

Notwithstanding Section 13.2 above, SMARTRAC Group will tolerate and will cause any other entity within SMARTRAC Group not to take any legal proceeding against any member of OTI Group with regard to the use of the existing wire embedded machines sold by OTI Group to the **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** ("JV OTI/ **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** ") during the period commencing January 1, 2005 through December 31, 2006 based on following conditions:

 

	 	
· 

	
The machines are owned by the JV OTI/**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**. These machines must not be sold to third parties within or outside of China;

 

	 	
· 

	
The machines are being used for the production of Chinese government products These products must not be sold or transferred outside of China;

 

	 	
· 

	
SMARTRAC thus is giving no licence to the OTI/**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** JV and there will be no public acknowledgement concerning any tolerance as specified above;

 

	 	
· 

	
SMARTRAC reserves the right to challenge the use of the machines if one of the aforementioned conditions is not fulfilled;

 

	 	
· 

	
SMARTRAC shall provide remunerated services to the machines owned by the JV OTI/**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**, if requested so;

 

	 	
· 

	
OTI and MCT shall have the right to continue its activity within the framework of the JV OTI/**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** and OTI and MCT activity in the framework of the JV OTI/**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** shall not be deemed a breach of its non competition obligation under this Agreement.

 

	
Article 14 Law and Jurisdiction

 

	
14.1.

	
Each Party to this APA hereby agrees and specifies that this APA shall be governed by and construed under the laws of the State of Delaware in the United States of America, without regard to principles of conflicts of laws and further agrees and specifies that such Party shall be subject to the jurisdiction of the courts of Delaware.

 

	
14.2.

	
Buyer 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.

 

  

16

  

 

	
14.3.

	
Seller 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.

 

	
14.4.

	
Each of the Parties commits to maintain the appointment of said agent of process for at least ten years from the Closing Date.

 

Article 15 Contradiction

 

This APA shall govern the subject matter thereof and supersedes the Agreement and the First Amendment in all respects and on the Closing Date the Agreement and the First Amendment shall be null and void with no further force and effect (except for the reference made herein).

 

Article 16 Miscellaneous

 

	
16.1.

	
Any changes or amendments to this agreement including any changes or amendments to this provision shall be in written form in order to be valid and binding.

 

	
16.2.

	
Any publication with regard to this APA and the Supply Agreement not yet made shall be mutually agreed and coordinated by the Parties.

 

	
16.3.

	
If a provision of this agreement is or becomes wholly or partially invalid, the validity of the remaining provisions of this agreement shall not be affected. The invalid provision shall be deemed to be replaced by a statute tolerable feasible provision which economically most closely reflects the purpose of the invalid provision. The same applies in the event that the agreement contains any omissions.

 

	
16.4

	
All notices and other communications under this APA (except for those required pursuant to Section 7.2.2 above) 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), 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):

  

17

  

 

If to Seller:

 

On Track Innovations Ltd.

 

Z.H.R. Industrial Zone, Rosh Pina 12000, ISRAEL

 

Tel: +972-4-686-8000

 

Fax: +972-4-693-8887

 

Attn.: Oded Bashan, Chairman and CEO

 

With a copy to:

 

Zysman, Aharoni, Gayer & Ady Kaplan & Co. Law offices

 

Beit Zion, 41-45 Rothchild Blvd., Tel Aviv 65784, Israel

 

Tel: +972-3-7955555

 

Fax: +972-3-7955550

 

Attn.: Eran Ben Dor, Attorney at Law

 

If to Buyer or SMARTRAC Group, to:

 

SMARTRAC N.V.

 

Strawinskylaan 851

 

1077 XX Amsterdam

 

The Netherlands

 

Phone: +31 20 30 50 150

 

Fax: +31 20 30 50 155

 

Attn.: Dr. Christian Fischer (CEO), Manfred Rietzler (CTO)

  

18

  

 

With a copy to:

 

Legal Department of SMARTRAC Group

 

c/o SMARTRAC Technology GmbH, Albstrasse 14, 70597 Stuttgart, Germany

 

Tel: +49 (711) 656926176

 

Fax: +49 (711) 65692611

 

Attn.: Ruediger von Knebel, General Counsel

 

This Agreement may be executed in multiple counterparts, each of which when executed and delivered, shall be deemed an original, but all of which shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Parties have caused this APA to be executed by their respective officers thereunto duly authorized, as of the date first written above.

 

	 	SMARTRAC Singapore Trading PTE. 

 

By: /s/ Christian Uhl

 

Printed Name: Christian Uhl

 

Printed Title: CFO

 

MILENNIUM CARD ́s TECHNOLOGY LIMITED,

By:  /s/ Guy Shafran

 

Printed Name: Guy Shafran

 

Printed Title: President

 

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

 

  

19

  

 

SMARTRAC GUARENTEE

 

In reference to a certain Asset Purchase Agreement, dated as of December 22nd, 2009, (the “APA”), by and between Millennium Card ́s Technology Limited, a Hong Kong corporation and On Track Innovations Ltd. on the one hand, and SMARTRAC Singapore Trading PTE, a Singapore corporation on the other hand, SMARTRAC N.V. hereby guarantees the fulfillment of the obligations, covenants and warranties of entities within SMARTRAC Group (as such term is defined in the APA) pursuant to the APA.

 

	 	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

 

  

20

  

 

Attachment 2.2.1                                           List of tangible assets

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Other Equipment MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
MCT Category

	
Machine status

	
NAME

	
STM Asset No.

	
MCT Asset No.

	
Ser. No/Ident.No.

	
Qty.

	  	  	  	  	  	  	  	  	  	  
	
3

	
A

	
Other equipment

	
Fully Operational

	
Server

	
MCT-10125

	
MCTSZCO010

	
06/04/25-15

	
1

	  
	
3

	
A

	
Other equipment

	
Fully Operational

	
Small Power Generator

	
MCT-10126

	
MCTSZOF243

	
06/03/31-22

	
1

	  
	
3

	
A

	
Other equipment

	
Fully Operational

	
UPS - Spare power source

	
MCT-10124

	
MCTSZOF025

	
06/03/31-23

	
1

	  
	
3

	
A

	
Other equipment

	
Fully Operational

	
Air Compressing machine

	
MCT-10122

	
MCTSZOF244

	
06/03/31-24

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Long Oven-Dryer

	
MCT-10244

	
MCTSZOF494

	
06/11/30-40

	
1

	  
	
3

	
A

	
Machinery

	
Fully Operational

	
Special Punching machine -Old

	
MCT-10127

	
MCTSZOF675

	
07/08/30-52

	
1

	  
	
3

	
A

	
Other equipmen(OTC)

	
Fully Operational

	
UPS - Spare power source

	
MCT-10130

	
MCTSZOF651

	
07/06/30-47

	
1

	  
	
3

	
A

	
Other equipmen(OTC)

	
Fully Operational

	
Air Compressing machine

	  	
MCTSZOF652

	
07/06/30-51

	
1

	  
	
3

	
A

	
Other equipmen(OTC)

	
Fully Operational

	
Nitrogenous Generator

	
MCT-10131

	
MCTSZOF681

	
07/07/31-33

	
1

	  
	
3

	
A

	
Other equipmen(OTC)

	
Fully Operational

	
UPS - Spare power source

	
MCT-10129

	
MCTSZOF729

	
07/12/31-51

	
1

	  
	
3

	
A

	
Other equipment

	
Fully Operational

	
Big Power Generator

	
MCT-10121

	
MCTSZOF730

	
07/12/31-52

	
1

	  
	
3

	
A

	
Other equipmen(OTC)

	
Fully Operational

	
Refrigerator room

	
MCT-10128

	
MCTSZOF618

	
07/05/26-32

	
1

	  
	
3

	
C

	
Other equipment

	
Fully Operational

	
Air Compressing machine

	
MCT-10123

	  	  	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO001

	
06/03/31-20

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO002

	
06/03/31-20

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO003

	
06/03/31-20

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO004

	
06/03/31-20

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO005

	
06/03/31-20

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO005

	
06/03/31-20

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO006

	
06/03/31-26

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
printer

	  	
MCTSZCO008

	
06/03/31-27

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
IBM-computer

	  	
MCTSZCO009

	
06/04/25-15

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO011

	
06/04/30-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO012

	
06/04/30-29

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO013

	
06/04/30-30

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO014

	
06/04/30-31

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO015

	
06/04/30-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO016

	
06/04/30-33

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO017

	
06/04/30-34

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO018

	
06/04/30-35

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO019

	
06/04/30-36

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO020

	
06/04/30-37

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO056R

	
06/05/19-6

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
computer

	  	
MCTSZCO042R

	
06/05/19-7

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
computer

	  	
MCTSZCO021

	
06/05/26-14

	
1

	  

 

	
Attach.2.2.1 Other Equipm(MCT)

	
1/12

 

  

  

  

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Other Equipment MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
MCT Category

	
Machine status

	
NAME

	
STM Asset No.

	
MCT Asset No.

	
Ser. No/Ident.No.

	
Qty.

	  	  	  	  	  	  	  	  	  	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
computer

	  	
MCTSZCO022

	
06/05/26-14

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
computer

	  	
MCTSZCO023

	
06/05/26-14

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
computer

	  	
MCTSZCO024

	
06/05/26-14

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO025

	
06/05/26-14

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO026

	
06/05/26-14

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO027

	
06/05/26-14

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
computer

	  	
MCTSZCO028

	
06/05/26-14

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO029

	
06/05/26-14

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
computer

	  	
MCTSZCO030

	
06/05/26-14

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO031

	
06/06/28-35

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
computer

	  	
MCTSZCO032

	
06/06/28-35

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
computer

	  	
MCTSZCO033

	
06/06/28-35

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO034

	
06/06/28-35

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO035

	
06/06/28-35

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO036

	
06/06/28-35

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO037

	
06/06/28-35

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
computer

	  	
MCTSZCO038

	
06/06/28-35

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO039

	
06/06/28-35

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO040

	
06/06/28-35

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
computer

	  	
MCTSZCO057

	
06/07/31-49

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
computer

	  	
MCTSZCO058

	
06/07/31-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO059

	
06/07/31-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO060

	
06/07/31-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO063

	
06/07/31-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO064

	
06/07/31-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO065

	
06/07/31-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO066

	
06/07/31-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO061

	
06/07/31-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO062

	
06/07/31-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO068

	
06/10/24-6

	
1

	  
	
3

	
B

	
Office

	
Broken and cannot be fixed

	
computer

	  	
MCTSZCO069

	
06/11/27-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO070

	
06/12/31-40

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO071

	
06/12/31-40

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO072

	
07/04/30-43

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	
MCTSZCO073

	
07/04/30-43

	
1

	  

 

	
Attach.2.2.1 Other Equipm(MCT)

	
2/12

 

  

  

  

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Other Equipment MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
MCT Category

	
Machine status

	
NAME

	
STM Asset No.

	
MCT Asset No.

	
Ser. No/Ident.No.

	
Qty.

	  	  	  	  	  	  	  	  	  	  	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO074

	
07/04/30-43

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO075

	
07/04/30-43

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO076

	
07/04/30-43

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO077

	
07/05/31-41

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO078

	
07/05/31-41

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
computer

	  	  	
MCTSZCO079

	
07/05/31-41

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO080

	
07/05/31-41

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO103

	
07/08/30-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO104

	
07/08/30-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO105

	
07/08/30-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO106

	
07/09/30-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO107

	
07/09/30-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO108

	
07/10/31-30

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO109

	
07/10/31-30

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO110

	
07/11/30-57

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO111

	
08/09/30-36

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO112

	
08/09/30-36

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
computer

	  	  	
MCTSZCO113

	
08/09/30-36

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO114

	
08/10/31-43

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO115

	
08/10/31-43

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO116

	
08/11/30-33

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO081

	
07/05/26-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO082

	
07/05/26-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO083

	
07/05/26-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO084

	
07/05/26-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO085

	
07/05/26-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO086

	
07/05/26-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO087

	
07/05/26-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO088

	
07/05/26-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO089

	
07/08/20-13

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO090

	
07/08/20-13

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO091

	
07/08/20-13

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO092

	
07/08/20-13

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO093

	
07/08/20-13

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO094

	
07/08/20-13

	
1

	  

 

	
Attach.2.2.1 Other Equipm(MCT)

	
3/12

 

  

  

  

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Other Equipment MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
MCT Category

	
Machine status

	
NAME

	
STM Asset No.

	
MCT Asset No.

	
Ser. No/Ident.No.

	
Qty.

	  	  	  	  	  	  	  	  	  	  	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO095

	
07/08/20-13

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO096

	
07/08/20-13

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO097

	
07/08/20-13

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO098

	
07/08/20-13

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO099

	
07/08/20-13

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
display

	  	  	
MCTSZCO100

	
07/08/20-13

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
display

	  	  	
MCTSZCO101

	
07/08/20-13

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
computer

	  	  	
MCTSZCO102

	
07/08/20-13

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
electrograph

	  	  	
MCTSZOF179R

	
06/03/24-7

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
tv

	  	  	
MCTSZOF181

	
06/03/24-7

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
cold store

	  	  	
MCTSZOF209

	
06/04/30-27

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
washing machine

	  	  	
MCTSZOF210

	
06/04/30-27

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
electrograph

	  	  	
MCTSZOF180

	
06/05/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
printer

	  	  	
MCTSZOF177

	
06/05/31-26

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
printer

	  	  	
MCTSZOF205

	
06/05/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
printer

	  	  	
MCTSZOF207

	
06/05/31-34

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
car

	  	  	
MCTSZOF248R

	
06/06/21-20

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
car

	  	  	
MCTSZOF249R

	
06/06/21-20

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
car

	  	  	
MCTSZOF250R

	
06/06/21-20

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
car

	  	  	
MCTSZOF251R

	
06/06/21-20

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
tangent

	  	  	
MCTSZOF254R

	
06/06/21-20

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
copying machine

	  	  	
MCTSZOF342

	
06/06/27-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF296

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF297

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF299

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF300

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF308

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF309

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF310

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF311

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF312

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF313

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF314

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF315

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF316

	
06/06/27-32

	
1

	  

 

	
Attach.2.2.1 Other Equipm(MCT)

	
4/12

 

  

  

  

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Other Equipment MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
MCT Category

	
Machine status

	
NAME

	
STM Asset No.

	
MCT Asset No.

	
Ser. No/Ident.No.

	
Qty.

	  	  	  	  	  	  	  	  	  	  	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF317

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF318

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF319

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF320

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF321

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF322

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF323

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF324

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF334

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF326

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF327

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF328

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF329

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF331

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF332

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
book shelf

	  	  	
MCTSZOF333

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
sofa

	  	  	
MCTSZOF303

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
sofa

	  	  	
MCTSZOF304

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
meeting desk

	  	  	
MCTSZOF292

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
meeting desk

	  	  	
MCTSZOF293

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
meeting desk

	  	  	
MCTSZOF294

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
meeting desk

	  	  	
MCTSZOF295

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
tv

	  	  	
MCTSZOF340

	
06/06/28-40

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
tv

	  	  	
MCTSZOF341

	
06/06/28-40

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
water heater

	  	  	
MCTSZOF360R

	
06/07/20-35

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
water heater

	  	  	
MCTSZOF364R

	
06/07/31-46

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF365R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF366R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF367R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF368R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF369R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF370R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF371R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF372R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF373R

	
06/07/31-47

	
1

	  

 

	
Attach.2.2.1 Other Equipm(MCT)

	
5/12

 

  

  

  

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Other Equipment MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
MCT Category

	
Machine status

	NAME	
STM Asset No.

	
MCT Asset No.

	
Ser. No/Ident.No.

	Qty.
	  	  	  	  	  	  	  	  	  	  	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF374R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF375R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF376R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF377R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF378R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF379R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF380R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF381R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF382R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF383R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF384R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF385R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF386R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF387R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF388R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF389R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF390R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF391R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF392R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF393R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF394R

	
06/07/31-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Switch

	  	  	
MCTSZOF395R

	
06/07/31-49

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
printer

	  	  	
MCTSZOF447

	
06/09/13-9

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
printer

	  	  	
MCTSZOF448

	
06/09/13-9

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
water machine

	  	  	
MCTSZOF469

	
06/10/27-22

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
high shelf

	  	  	
MCTSZOF485

	
06/11/23-15

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
high shelf

	  	  	
MCTSZOF486

	
06/11/23-15

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
high shelf

	  	  	
MCTSZOF487

	
06/11/23-15

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF488

	
06/11/23-15

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Cleaner

	  	  	
MCTSZOF489

	
06/11/30-36

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
printer

	  	  	
MCTSZOF491

	
06/11/30-39

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Air conditioner

	  	  	
MCTSZOF682

	
07/07/31-40

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Air conditioner

	  	  	
MCTSZOF683

	
07/07/31-40

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Air conditioner

	  	  	
MCTSZOF684

	
07/07/31-40

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
printer

	  	  	
MCTSZOF491

	
07/04/30-38

	
1

	  

 

	
Attach.2.2.1 Other Equipm(MCT)

	
6/12

 

 

 

 

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Other Equipment MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
MCT Category

	
Machine status

	
NAME

	
STM Asset No.

	
MCT Asset No.

	
Ser. No/Ident.No.

	
Qty.

	  	  	  	  	  	  	  	  	  	  	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Switch

	  	  	
MCTSZOF616

	
07/05/14-17

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Switch

	  	  	
MCTSZOF617

	
07/05/14-17

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
copying machine

	  	  	
MCTSZOF625

	
07/06/30-26

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
printer

	  	  	
MCTSZOF626

	
07/06/30-26

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Switch

	  	  	
MCTSZOF627

	
07/06/30-26

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Cleaner

	  	  	
MCTSZOF628

	
07/06/30-26

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Cleaner

	  	  	
MCTSZOF629

	
07/06/30-26

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
cold store

	  	  	
MCTSZOF630

	
07/06/30-26

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Carbinet

	  	  	
MCTSZOF631

	
07/06/30-29

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Carbinet

	  	  	
MCTSZOF632

	
07/06/30-29

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
clothes stand

	  	  	
MCTSZOF633

	
07/06/30-29

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
clothes stand

	  	  	
MCTSZOF634

	
07/06/30-29

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
refrigeratory

	  	  	
MCTSZOF638

	
07/06/30-47

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
skin chair

	  	  	
MCTSZOF709

	
07/11/30-56

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
skin chair

	  	  	
MCTSZOF710

	
07/11/30-56

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
skin chair

	  	  	
MCTSZOF711

	
07/11/30-56

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
skin chair

	  	  	
MCTSZOF712

	
07/11/30-56

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
skin chair

	  	  	
MCTSZOF713

	
07/11/30-56

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
skin chair

	  	  	
MCTSZOF714

	
07/11/30-56

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
skin chair

	  	  	
MCTSZOF715

	
07/11/30-56

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
skin chair

	  	  	
MCTSZOF716

	
07/11/30-56

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
skin chair

	  	  	
MCTSZOF717

	
07/11/30-56

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
skin chair

	  	  	
MCTSZOF718

	
07/11/30-56

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
skin chair

	  	  	
MCTSZOF719

	
07/11/30-56

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
skin chair

	  	  	
MCTSZOF720

	
07/11/30-56

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
meeting chair

	  	  	
MCTSZOF722

	
07/11/30-56

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
meeting chair

	  	  	
MCTSZOF723

	
07/11/30-56

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Desk

	  	  	
MCTSZOF724

	
07/11/30-56

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Steel Workbench

	  	  	
MCTSZOF120R

	
06/03/09-1

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
product line

	  	  	
MCTSZOF121R

	
06/03/09-1

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF136R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF137R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF138R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF139R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF140R

	
06/03/31-19

	
1

	  

 

	
Attach.2.2.1 Other Equipm(MCT)

	
7/12

 

  

  

  

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Other Equipment MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
MCT Category

	
Machine status

	
NAME

	
STM Asset No.

	
MCT Asset No.

	
Ser. No/Ident.No.

	
Qty.

	  	  	  	  	  	  	  	  	  	  	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF141R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF142R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF143R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF144R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF145R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF146R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF147R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF148R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF149R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF150R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF151R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF152R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF153R

	
06/03/31-19

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Switch

	  	  	
MCTSZOF242

	
06/03/31-21

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Cleaner

	  	  	
MCTSZOF027

	
06/04/10-2

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Cooling machine

	  	  	
MCTSZOF028R

	
06/04/30-22

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Cutting machine

	  	  	
MCTSZOF029R

	
06/04/30-22

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Dripping machine

	  	  	
MCTSZOF030R

	
06/04/30-22

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF130R

	
06/04/30-22

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF131R

	
06/04/30-22

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF132R

	
06/04/30-22

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF133R

	
06/04/30-22

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF134R

	
06/04/30-22

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF135R

	
06/04/30-22

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Product line component

	  	  	
MCTSZOF121R

	
06/05/31-16

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Cooling machine

	  	  	
MCTSZOF040R

	
06/05/31-17

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Oven

	  	  	
MCTSZOF240

	
06/05/31-30

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Desk

	  	  	
MCTSZOF298

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Desk

	  	  	
MCTSZOF301

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Desk

	  	  	
MCTSZOF325

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Desk

	  	  	
MCTSZOF330

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Desk

	  	  	
MCTSZOF302

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Desk

	  	  	
MCTSZOF289

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Desk

	  	  	
MCTSZOF290

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Desk

	  	  	
MCTSZOF291

	
06/06/27-32

	
1

	  

 

	
Attach.2.2.1 Other Equipm(MCT)

	
8/12

 

  

  

  

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Other Equipment MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
MCT Category

	
Machine status

	
NAME

	
STM Asset No.

	
MCT Asset No.

	
Ser. No/Ident.No.

	
Qty.

	  	  	  	  	  	  	  	  	  	  	  
	
3

	
B

	
Office

	
Fully Operational

	
Desk

	  	  	
MCTSZOF305

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Cabinet

	  	  	
MCTSZOF306

	
06/06/27-32

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Cabinet

	  	  	
MCTSZOF307

	
06/06/27-32

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Stress machine

	  	  	
MCTSZOF261R

	
06/06/28-34

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF353R

	
06/07/20-42

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF354R

	
06/07/20-42

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF355R

	
06/07/20-42

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF356R

	
06/07/20-42

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF348R

	
06/07/20-42

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF349R

	
06/07/20-42

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF350R

	
06/07/20-42

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF351R

	
06/07/20-42

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF352R

	
06/07/20-42

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF358R

	
06/07/20-42

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF359R

	
06/07/20-42

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Cutting machine

	  	  	
MCTSZOF434

	
06/09/30-42

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF470

	
06/10/31-27

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF471

	
06/10/31-27

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF472

	
06/10/31-27

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
shelf

	  	  	
MCTSZOF473

	
06/10/31-27

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Desk

	  	  	
MCTSZOF483

	
06/11/23-15

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Desk

	  	  	
MCTSZOF484

	
06/11/23-15

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Packing machine

	  	  	
MCTSZOF490

	
06/11/30-36

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Coarseness instrument

	  	  	
MCTSZOF611

	
07/5/31-32

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Balance

	  	  	
MCTSZOF613

	
07/6/30-25

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Save

	  	  	
MCTSZOF739

	
08/07/31-24

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Packing Bench

	  	  	
MCTSZOF740

	
08/08/31-30

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Scrapping machine

	  	  	
MCTSZOF741

	
08/10/31-24

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Punching moudle

	  	  	
MCTSZOF228R

	
06/05/19-6

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Shelf

	  	  	
MCTSZOF229R

	
06/05/19-6

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Smooth machine

	  	  	
MCTSZOF241

	
06/05/31-28

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Smooth machine

	  	  	
MCTSZOF256

	
06/06/15-5

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Cutting machine

	  	  	
MCTSZOF257

	
06/06/15-5

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Smooth machine

	  	  	
MCTSZOF246R

	
06/06/21-20

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Smooth machine

	  	  	
MCTSZOF247R

	
06/06/21-20

	
1

	  

 

	
Attach.2.2.1 Other Equipm(MCT)

	
9/12

 

  

  

  

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Other Equipment MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
MCT Category

	
Machine status

	
NAME

	
STM Asset No.

	
MCT Asset No.

	
Ser. No/Ident.No.

	
Qty.

	  	  	  	  	  	  	  	  	  	  	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Smooth machine

	  	  	
MCTSZOF252R

	
06/06/21-20

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Cleaner

	  	  	
MCTSZOF343R

	
06/06/28-34.

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Cutting machine

	  	  	
MCTSZOF218

	
06/06/28-36

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Cutting machine

	  	  	
MCTSZOF219

	
06/06/28-37

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Hygroscopic machine

	  	  	
MCTSZOF357R

	
06/07/20-42

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF501R

	
06/12/31-36

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF502R

	
06/12/31-36

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF503R

	
06/12/31-36

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
aiguille

	  	  	
MCTSZOF547

	
07/01/31-28

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Balance

	  	  	
MCTSZOF612

	
07/06/30-25

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Jaw cart

	  	  	
MCTSZOF731

	
07/12/31-70

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Cover

	  	  	
MCTSZOF619

	
07/06/30-18

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Cover

	  	  	
MCTSZOF620

	
07/06/30-18

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Hygroscopic machine

	  	  	
MCTSZOF621

	
07/06/30-26

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Hygroscopic machine

	  	  	
MCTSZOF622

	
07/06/30-26

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Hygroscopic machine

	  	  	
MCTSZOF623

	
07/06/30-26

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Cleaner

	  	  	
MCTSZOF624

	
07/06/30-26

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
nitrogenous carbinet

	  	  	
MCTSZOF635

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
nitrogenous carbinet

	  	  	
MCTSZOF636

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
nitrogenous carbinet

	  	  	
MCTSZOF637

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
Cooling machine

	  	  	
MCTSZOF639

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Transformer

	  	  	
MCTSZOF640

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Transformer

	  	  	
MCTSZOF641

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Transformer

	  	  	
MCTSZOF642

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Transformer

	  	  	
MCTSZOF643

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Transformer

	  	  	
MCTSZOF644

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Transformer

	  	  	
MCTSZOF645

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Transformer

	  	  	
MCTSZOF646

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Transformer

	  	  	
MCTSZOF647

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Transformer

	  	  	
MCTSZOF648

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Transformer

	  	  	
MCTSZOF649

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Transformer

	  	  	
MCTSZOF650

	
07/06/30-47

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
nitrogenous carbinet

	  	  	
MCTSZOF653

	
07/06/30-51

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF654

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF655

	
07/07/31-28

	
1

	  

 

	
Attach.2.2.1 Other Equipm(MCT)

	
10/12

 

  

  

  

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Other Equipment MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
MCT Category

	
Machine status

	
NAME

	
STM Asset No.

	
MCT Asset No.

	
Ser. No/Ident.No.

	
Qty.

	  	  	  	  	  	  	  	  	  	  	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF656

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF657

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF658

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF659

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF660

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF661

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF662

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF663

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF664

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF665

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF666

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF667

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF668

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF669

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF670

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF671

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF672

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF673

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF674

	
07/07/31-28

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (cold store)

	  	  	
MCTSZOF676

	
07/07/31-28

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (cold store)

	  	  	
MCTSZOF677

	
07/07/31-28

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (store)

	  	  	
MCTSZOF678

	
07/07/31-28

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (store)

	  	  	
MCTSZOF679

	
07/07/31-28

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
garbage bin

	  	  	
MCTSZOF680

	
07/07/31-28

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (cold store)

	  	  	
MCTSZOF690

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (cold store)

	  	  	
MCTSZOF691

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (cold store)

	  	  	
MCTSZOF692

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (cold store)

	  	  	
MCTSZOF693

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (cold store)

	  	  	
MCTSZOF694

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (cold store)

	  	  	
MCTSZOF695

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (store)

	  	  	
MCTSZOF696

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (store)

	  	  	
MCTSZOF697

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (store)

	  	  	
MCTSZOF698

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (store)

	  	  	
MCTSZOF699

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (store)

	  	  	
MCTSZOF700

	
07/09/30-44

	
1

	  

 

	
Attach.2.2.1 Other Equipm(MCT)

	
11/12

 

  

  

  

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Other Equipment MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
MCT Category

	
Machine status

	
NAME

	
STM Asset No.

	
MCT Asset No.

	
Ser. No/Ident.No.

	
Qty.

	  	  	  	  	  	  	  	  	  	  	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (store)

	  	  	
MCTSZOF701

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (store)

	  	  	
MCTSZOF702

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
shelf (store)

	  	  	
MCTSZOF703

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
desk

	  	  	
MCTSZOF704

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
desk

	  	  	
MCTSZOF705

	
07/09/30-44

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Ultrasonic cleaning machine

	  	  	
MCTSZOF707

	
07/11/30-43

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Desk

	  	  	
MCTSZOF708

	
07/11/30-43

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Desk

	  	  	
MCTSZOF721

	
07/11/30-56

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
meeting chair

	  	  	
MCTSZOF732

	
07/12/31-66

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
meeting chair

	  	  	
MCTSZOF733

	
07/12/31-66

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
meeting chair

	  	  	
MCTSZOF734

	
07/12/31-66

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
chair

	  	  	
MCTSZOF735

	
07/12/31-66

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
desk

	  	  	
MCTSZOF736

	
07/12/31-66

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
nitrogenous carbinet

	  	  	
MCTSZOF726

	
07/12/31-66

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
nitrogenous carbinet

	  	  	
MCTSZOF727

	
07/12/31-66

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
nitrogenous carbinet

	  	  	
MCTSZOF728

	
07/12/31-66

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
vacuum pump

	  	  	
MCTSZOF737

	
08/01/31-14

	
1

	  
	
3

	
B

	
Other equipment

	
Fully Operational

	
electrical machine

	  	
MCT-10121

	
MCTSZOF738

	
08/01/31-15

	
1

	  
	
3

	
B

	
Other equipmen(OTC)

	
Fully Operational

	
Spectrum machine

	  	  	
MCTSZEL001

	
06/04/30-26

	
1

	  
	
3

	
B

	
Office

	
Fully Operational

	
Hygroscopic machine

	  	  	
MCTSZOF339R

	
06/06/28-37

	
1

	  
	
3

	
B

	
all removable fixtures

	
Fully Operational

	
located at SZ site

	  	  	  	  	
1

	  

 

	
Attach.2.2.1 Other Equipm(MCT)

	
12/12

 

  

  

  

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Module Line OTI

	
between MCT, OTI and SMARTRAC

	  

 

	  	  	  	
MCT Asset

	  	  	  	  	
New Asset

	
Group

	
Imp.

	
Category

	
No./location

	
Machine status

	
Name

	
Type

	
Qty.

	
Number

	  	  	  	 	  	  	  	  	
 

	
1

	
A

	
Machinery (OTC)

	
OTISZME029

	
Fully Operational

	
Scienscope View-X X-Ray Imagine & Inspection System

	  	
1

	
MCT-10081

	
1

	
A

	
Machinery (OTC)

	
OTISZME032

	
Fully Operational

	
NIKON MM-800 Measuring Microscope

	  	
1

	
MCT-10082

	
1

	
A

	
Machinery (OTC)

	
OTISZME039

	
Fully Operational

	
SFT9200 Fluorescent X-Ray Coating Thickness Gauge

	  	
1

	
MCT-10083

	
1

	
A

	
Machinery (OTC)

	
OTISZME040

	
Fully Operational

	
DageSeries-4000 Bondtester

	  	
1

	
MCT-10087

	
1

	
A

	
Machinery (OTC)

	
OTISZME034

	
Fully Operational

	
Thermal Shock Chamber

	  	
1

	
MCT-10117

	
1

	
A

	
Machinery (OTC)

	
OTISZME035

	
Fully Operational

	
Programmable Temperature/Humidity Camber

	  	
1

	
MCT-10116

	
1

	
A

	
Machinery (OTC)

	
OTISZME036

	
Fully Operational

	
Salt Sprat Tester

	  	
1

	
MCT-10115

	
1

	
A

	
Machinery (OTC)

	
OTISZME041

	
Fully Operational

	
Pressure Cook Tester

	  	
1

	
MCT-10114

	
1

	
A

	
Machinery (OTC)

	
OTISZME038

	
Fully Operational

	
Port View 300CNC

	  	
1

	
MCT-10084

	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	
Muhlbauer Service & Parts (*1)

	  	
1

	  
	
1

	
A

	
Machinery (OTC)

	
OTISZME033

	
Fully Operational

	
Precticle counter

	  	
1

	
MCT-10085

	
1

	
A

	
Machinery (OTC)

	
OTISZME037

	
Fully Operational

	
Anti static machines

	  	
1

	
MCT-10281

	
1

	
A

	
Machinery (OTC)

	
OTISZME042

	
Fully Operational

	
NIKON SMZ645

	  	
1

	
MCT-10086

	
1

	
A

	
Machinery (OTC)

	
OTISZME031

	
Fully Operational

	
NIKON Microscope

	  	
1

	
MCT-10088

	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	
Board exchange (**2)

	  	
1

	  
	
1

	
A

	
Machinery (OTC)

	
0071

	
Only parts or frame

	  	
PCB (RAM Board)

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
’0034

	
Only parts or frame

	  	
SOLENOID V/V(Ejector)

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
OTISZME013

	
Fully Operational

	
Die Bonder 2008

	
Die Bonding M/C

	
1

	
MCT-10091

	
1

	
A

	
Machinery (OTC)

	
0052-1

	
Only parts or frame

	  	
Force Control Bond Head Belt

	
10

	  
	
1

	
A

	
Machinery (OTC)

	
0052-2

	
Only parts or frame

	  	
5-PHASE MOTOR

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
0054

	
Only parts or frame

	  	
EXPANSION MOTOR DIGT ENC

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
0053

	
Only parts or frame

	  	
PCB SENSOR LOGK

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
0057

	
Only parts or frame

	  	
EXPANSION PART(CAPA’)

	
7

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
(Disense Nozzle)

	
17

	  
	
1

	
A

	
Machinery (OTC)

	
F3D-02-01

	
Only parts or frame

	  	
FIBER CABLE

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
F3D-02-01

	
Only parts or frame

	  	
TOGLE SWITCH(BUFFER)

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
’0071

	
Only parts or frame

	  	
PCB W COMP VCPUOODE 16MHZ

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
’0065

	
Only parts or frame

	  	
BELT TOOTHED 10T 2.5/285

	
5

	  
	
1

	
A

	
Machinery (OTC)

	
’0068

	
Only parts or frame

	  	
BELT TOOTHED

	
5

	  
	
1

	
A

	
Machinery (OTC)

	
’0063

	
Only parts or frame

	  	
Z-BELT 10T/2.5/177.5

	
4

	  
	
1

	
A

	
Machinery (OTC)

	
OTISZME014

	
Fully Operational

	
Part of Die Bonder

	
Curing System M/C

	
1

	
MCT-10092

	
1

	
A

	
Machinery (OTC)

	
OTISZME017

	
Fully Operational

	
Wire Bonder

	
Wire Bonding M/C

	
1

	
MCT-10093

	
1

	
A

	
Machinery (OTC)

	
OTISZME015

	
Fully Operational

	
Wire Bonder

	
Wire Bonding M/C

	
1

	
MCT-10094

	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
EFO

	
9

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
Heater Block

	
11

	  
	
1

	
A

	
Machinery (OTC)

	
OTISZME016

	
Fully Operational

	
Wire Bonder

	
Wire Bonding M/C

	
1

	
MCT-10095

	
1

	
A

	
Machinery (OTC)

	
’0072

	
Only parts or frame

	
Spare Part

	
PCB DRIVER INDEX CLAMPS

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
OTISZME018

	
Only parts or frame

	
Part of Encapsulation M/C

	
Curing System M/C

	
1

	
MCT-10096

	
1

	
A

	
Machinery (OTC)

	
OTISZME018

	
Only parts or frame

	
Encapsulation

	
Automatic Chip Encapsulation M/C

	
1/2

	
MCT-10097

	
1

	
A

	
Machinery (OTC)

	
OTISZME018

	
Only parts or frame

	
Part of_Encapsulation M/C

	
Spool

	
1

	
MCT-10098

	
1

	
A

	
Machinery (OTC)

	
OTISZME018

	
Only parts or frame

	
Spare Parts

	
MEASURE THICKNESS PAD

	
1

	
MCT-10100

	
1

	
A

	
Machinery (OTC)

	
0034

	
Only parts or frame

	  	
SOLENOID V/V

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
PISTON

	
12

	  
	
1

	
A

	
Machinery (OTC)

	
0036

	
Only parts or frame

	  	
DEEPGROOVE BALL BEARING

	
2

	  
	
1

	
A

	
Machinery (OTC)

	
F3D-02-01

	
Only parts or frame

	  	
HEAD SLIDE BLOCK

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
U.V SOCKET

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
HEATER

	
2

	  
	
1

	
A

	
Machinery (OTC)

	
0040

	
Only parts or frame

	  	
BRAKE SHOE

	
2

	  
	
1

	
A

	
Machinery (OTC)

	
0041

	
Only parts or frame

	  	
BUSH

	
2

	  
	
1

	
A

	
Machinery (OTC)

	
0042

	
Only parts or frame

	  	
PLAIN BEARING BUSH

	
4

	  
	
1

	
A

	
Machinery (OTC)

	
0044

	
Only parts or frame

	  	
LSULATING BUSING

	
6

	  
	
1

	
A

	
Machinery (OTC)

	
0045

	
Only parts or frame

	  	
CONNECTOR-CLIP

	
3

	  
	
1

	
A

	
Machinery (OTC)

	
0046

	
Only parts or frame

	  	
PAD

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
0047

	
Only parts or frame

	  	
HOSE CONNECTION FOR DISTRIBOLT

	
27

	  
	
1

	
A

	
Machinery (OTC)

	
0048

	
Only parts or frame

	  	
SHAFT

	
9

	  
	
1

	
A

	
Machinery (OTC)

	
0049

	
Only parts or frame

	  	
NOZZLE

	
16

	  
	
1

	
A

	
Machinery (OTC)

	
0050

	
Only parts or frame

	  	
NOZZLE

	
6

	  
	
1

	
A

	
Machinery (OTC)

	
’0012

	
Only parts or frame

	  	
SHAFT AIR CYLINDER

	
13

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
PISTON O-RING

	
100

	  
	
1

	
A

	
Machinery (OTC)

	
’0014

	
Only parts or frame

	
Spare Parts

	
HEATER CONTROLLER

	
5

	  
	
1

	
A

	
Machinery (OTC)

	
’0015

	
Only parts or frame

	  	
HEATER CONTROLLER SOCKET

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
’0016

	
Only parts or frame

	  	
THEROMO SWITCH

	
6

	  
	
1

	
A

	
Machinery (OTC)

	
’0017

	
Only parts or frame

	  	
CONNECTOR

	
2

	  
	
1

	
A

	
Machinery (OTC)

	
F3D-02-01

	
Only parts or frame

	  	
U.V LAMP

	
2

	  
	
1

	
A

	
Machinery (OTC)

	
’0019

	
Only parts or frame

	  	
RELAY

	
2

	  
	
1

	
A

	
Machinery (OTC)

	
’0022

	
Only parts or frame

	  	
TOOTHED VELT

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
’0023

	
Only parts or frame

	  	
DIODE PLUG SQUARE

	
2

	  
	
1

	
A

	
Machinery (OTC)

	
’0030

	
Only parts or frame

	  	
TAPE SENSOR BOAD

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
’0026

	
Only parts or frame

	  	
DOOR LOCKING BOLT

	
6

	  
	
1

	
A

	
Machinery (OTC)

	
0027

	
Only parts or frame

	  	
SETPING MOTOR

	
2

	  
	
1

	
A

	
Machinery (OTC)

	
0028

	
Only parts or frame

	  	
SERVO MOTOR

	
2

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
TAPE SENSOR BOARD LIGHT EMITTING

	
3

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
TAPE SENSOR BOARD LIGHT RECEIVING

	
6

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
OPTICAL POSITION BOARD LIGHT EMITTING

	
7

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
OPTICAL POSITION BOARD LIGHT RECEIVING

	
2

	  
	
1

	
A

	
Machinery (OTC)

	
F3D-02-01

	
Only parts or frame

	  	
DOSING DRIVE SENSOR BOARD

	
2

	  
	
1

	
A

	
Machinery (OTC)

	
F3D-02-01

	
Only parts or frame

	  	
PAPER TRANSFER SENSOR

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
0008

	
Only parts or frame

	  	
CONTROL CABLE

	
2

	  
	
1

	
A

	
Machinery (OTC)

	
0009

	
Only parts or frame

	  	
IN PUT O-RING

	
190

	  
	
1

	
A

	
Machinery (OTC)

	
0010

	
Only parts or frame

	  	
SEAL-JET RING

	
4

	  
	
1

	
A

	
Machinery (OTC)

	
OTISZME018

	
Fully Operational

	
Part of Encapsulation M/C

	
Automatic Chip Encapsulation M/C

	
2/2

	
MCT-10099

	
1

	
A

	
Machinery (OTC)

	  	
Fully Operational

	
Encapsulation M/C

	
Epoxy Tank/Nozzle

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
OTISZME018

	
Fully Operational

	
Part of Encapsulation M/C

	
Thickness Gauge

	
1

	
MCT-10100

	
1

	
A

	
Machinery (OTC)

	
OTISZME019

	
InFully Operational

	
Mold

	
Molding M/C - QUIN

	
1

	
MCT-10102

	
1

	
A

	
Machinery (OTC)

	
OTISZME020

	
Fully Operational

	
Mold

	
Molding M/C - ASM

	
1

	
MCT-10103

	
1

	
A

	
Machinery (OTC)

	  	
Fully Operational

	
Part of Mold M/C

	
Loading & Unloading parts

	
2

	  
	
1

	
A

	
Machinery (OTC)

	  	
Fully Operational

	
Part of Mold M/C

	
Chase Lift

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Fully Operational

	
Part of Mold M/C

	
Work Table

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Fully Operational

	
Part of Mold M/C

	
TOP MOLD CHASE

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Fully Operational

	
Part of Mold M/C

	
BOTTOM MOLD CHASE

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Fully Operational

	
Part of Mold M/C

	
ATTACHMENT PART

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Fully Operational

	
Part of Mold M/C

	
MIDDLE PLATE

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
OTISZME022

	
Fully Operational

	
Trim

	
Trim M/C

	
1

	
MCT-10104

	
1

	
A

	
Machinery (OTC)

	
0003

	
Only parts or frame

	
Spare Part

	
CUTTING BTM MOLD

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
OTISZME023

	
Fully Operational

	
Trim

	
Trim M/C

	
1

	
MCT-10105

	
1

	
A

	
Machinery (OTC)

	  	
Fully Operational

	
Part of Trim M/C

	
Dust Collector

	
1

	
MCT-10106

	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
TRIM PUNCH “A”

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
DETECTOR PUNCH “A”

	
8

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
DETECTOR PUNCH “B”

	
8

	  
	
1

	
A

	
Machinery (OTC)

	
OTISZME024

	
Fully Operational

	
Test

	
Test M/C

	
1

	
MCT-10107

 

	
Attach 2.2.1 Module Line (OTI)

	
1/2

 

  

  

  

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Module Line OTI

	
between MCT, OTI and SMARTRAC

	  

 

	  	  	  	
MCT Asset

	  	  	  	  	
New Asset

	
Group

	
Imp.

	
Category

	
No./location

	
Machine status

	
Name

	
Type

	
Qty.

	
Number

	  	  	  	 	  	  	  	  	 
	
1

	
A

	
Machinery (OTC)

	
0004

	  	
Spare Part

	
TEST PIN BOARD

	
4

	  
	
1

	
A

	
Machinery (OTC)

	
OTISZME025

	
Fully Operational

	
Test

	
Test M/C

	
1

	
MCT-10108

	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	
Part of Test M/C

	
Spool

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	
Part of Test M/C

	
Spool

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	
Part of Test M/C

	
Dust Collector

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
MCTSZME023

	
InFully Operational

	
Test

	
Test M/C

	
1

	
MCT-10109

	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	
Part of Test M/C

	
Spool

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	
Part of Test M/C

	
Spool

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	
Part of Test M/C

	
Dust Collector

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
CIRCUIT PUNCH TOP

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
CIRCUIT PUNCH BTM

	
2

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
CIRCUIT PUNCH SET

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
OTISZME028

	
Fully Operational

	
V/I

	
Visual Inspection M/C

	
1

	
MCT-10110

	
1

	
A

	
Machinery (OTC)

	
OTISZME027

	
Fully Operational

	
V/I

	
Visual Inspection M/C

	
1

	
MCT-10120

	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	
Spare Parts

	
REJECT PUNCH TOP MOLD

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
TAPE CUTTING BLADE

	
2

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
SPROCKET HOLE BTM

	
1

	  
	
1

	
A

	
Machinery (OTC)

	
OTISZME026

	
Fully Operational

	
V/I

	
Visual Inspection M/C

	
1

	
MCT-10119

	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	
Spare Parts

	
TAPE CUTTING TOP DIE

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
TAPE CUTTING BTM DIE

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
SPROCKET HOLE TOP DIE

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
SPROCKET HOLE BTM DIE

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	
Only parts or frame

	  	
TAPE CUTTING BLADE

	
2

	  
	
1

	
A

	
Machinery (OTC)

	  	  	
Shelf

	
Shelf#1~#3

	
3

	  
	
1

	
A

	
Machinery (OTC)

	  	  	
Shelf

	
Shelf#4,#5

	
2

	  
	
1

	
A

	
Machinery (OTC)

	  	  	
Shelf

	
Shelf#6

	
1

	  
	
1

	
A

	
Machinery (OTC)

	  	  	
Table

	
Shelf#6

	
4

	  
	  	  	  	  	  	
Barun production line

	
Total

	  	  
	
3

	
C

	
Machinery (OTC)

	  	
Fully Operational

	
Weight scale

	  	
1

	
MCT-10272

	  	  	
Machinery (OTC)

	  	
Fully Operational

	
Lead Frame tooling for OT88202RF (BR53) module type

	
OT88202RF (BR53) module type

	
1

	  
	  	  	
Machinery (OTC)

	  	
Fully Operational

	
Lead Frame tooling for OT88214RF module type

	
OT88214RF module type

	
1

	  
	  	  	
Machinery (OTC)

	  	
Fully Operational

	
Lead Frame tooling for OT88215RF module type

	
OT88215RF module type

	
1

	  

 

	
Attach 2.2.1 Module Line (OTI)

	
2/2

 

  

  

  

 

	
Attachement to the

	
Attachement 2.2.1

	
Asset Purchase Agreement

	
Machinery MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
Category

	
Machine status

	
Initial Name

	
STM Asset No.

	
MCT Asset No.

	
Type

	
Ser.No./Ident.No.

	
Qty

	  	  	  	  	  	  	  	  	  	  	  
	
1

	
A

	
Technical and R&D equipment

	
Broken and will be fixed before shipment

	
Passport Pocess Machine 3010

	
MCT-10170

	
MCTSZME048R

	
OT-IP3010

	
06/03/31-25

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Welding Machine

	
MCT-10072

	
MCTSZME011R

	
Bondpro2000

	
06/03/31-25

	
1

	  
	
2

	
B

	
Machinery

	
Fully Operational

	
Manual Milling Machine

	
MCT-10224

	
MCTSZME009R

	
DICP

	
06/03/31-25

	
1

	  
	
1

	
B

	
Machinery

	
Partly Operational - Slight technical rework required

	
Epoxy Filler Machine

	
MCT-10298

	
MCTSZME023R

	
ADM

	
06/03/31-25

	
1

	  
	
1

	
A

	
Machinery

	
Fully Operational

	
Punching Machine

	
MCT-10320

	
MCTSZME003R

	
Punchpro2000

	
06/03/31-25

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Punching Machine

	
MCT-10165

	
MCTSZME038R

	
GDM-6K

	
06/03/31-25

	
1

	  
	
1

	
A

	
Machinery

	
Fully Operational

	
punch machine

	
MCT-10318

	
MCTSZME002R

	
Guidepro2000

	
06/03/31-25

	
1

	  
	
1

	
A

	
Machinery

	
Fully Operational

	
punch machine

	
MCT-10319

	
MCTSZME001R

	
Guidepro2000

	
06/03/31-25

	
1

	  
	
1

	
A

	
Machinery

	
Fully Operational

	
Welding machine

	
MCT-10112

	
MCTSZME007R

	
ICHS

	
06/03/31-25

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10058

	
MCTSZME013R

	
WirePro

	
06/04/30-20

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Welding Machine

	
MCT-10078

	
MCTSZME014R

	
WirePro (Bonder)

	
06/04/30-20

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Welding Machine

	
MCT-10075

	
MCTSZME015R

	
Bondpro2000

	
06/04/30-20

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Punching Machine

	
MCT-10062

	
MCTSZME016R

	
Punchpro2000

	
06/04/30-20

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Welding Machine

	
MCT-10111

	
MCTSZME018R

	
MTSW

	
06/04/30-20

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Guiding holes punch machine

	
MCT-10067

	
MCTSZME017R

	
Guidepro2000

	
06/04/30-20

	
1

	  
	
3

	
B

	
Machinery

	
Partly Operational - Slight technical rework required

	
Cover’s polish machine

	
NO NUMBER

	
MCTSZME065R

	  	
06/05/19-6

	
1

	  
	
3

	
B

	
Machinery

	
Partly Operational - Slight technical rework required

	
Old R&D E-Cover mchine- solvent base

	
MCT-10214

	
MCTSZME063R

	  	
06/05/19-6

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
Part of 8010W

	
MCT-10213

	
MCTSZME064R

	  	
06/05/19-6

	
1

	  
	
3

	
B

	
Machinery

	
Fully Operational

	
Sheet Guillotine auto

	
MCT-10263

	
MCTSZME062R

	  	
06/05/19-6

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
Manual glue machine

	
NO NUMBER

	
MCTSZME066R

	  	
06/05/19-6

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
Lathe

	
MCT-10211

	
MCTSZME050R

	  	
06/05/19-7

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10047

	
MCTSZME028R

	  	
06/05/19-8

	
1

	  
	
3

	
B

	
Machinery

	
Fully Operational

	
Silk Screen Printer

	
MCT-10243

	
MCTSZME035R

	  	
06/05/19-8

	
1

	  
	
3

	
A

	
Machinery

	
Fully Operational

	
Pressing Machine

	
MCT-10080

	
MCTSZME041R

	  	
06/05/31-17

	
1

	  
	
3

	
A

	
Machinery

	
Fully Operational

	
Pressing Machine

	
MCT-10161

	
MCTSZME042R

	  	
06/05/31-17

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Pressing Machine

	
MCT-10164

	
MCTSZME046

	
HS-LF500

	
06/05/31-18

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Sheet Punching Machine

	
MCT-10169

	
MCTSZME049

	
SW1-45

	
06/05/31-18

	
1

	  
	
3

	
A

	
Machinery

	
Fully Operational

	
Pressing Machine

	
MCT-10163

	
MCTSZME045

	
HS-LF500

	
06/05/31-33

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10056

	
MCTSZME020R

	  	
06/05/31-47

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10055

	
MCTSZME024R

	  	
06/05/31-47

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10059

	
MCTSZME037R

	
WirePro

	
06/05/31-47

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10054

	
MCTSZME021R

	  	
06/05/31-47

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10044

	
MCTSZME026R

	
WirePro2000

	
06/05/31-47

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10053

	
MCTSZME034R

	
WirePro

	
06/05/31-47

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10051

	
MCTSZME055R

	
WirePro2000

	
06/05/31-47

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10048

	
MCTSZME052R

	
WirePro2000

	
06/05/31-47

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10029

	
MCTSZME043R

	
WirePro2001

	
06/05/31-48

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10045

	
MCTSZME044R

	
WirePro2000

	
06/05/31-47

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10046

	
MCTSZME056R

	
WirePro2000

	
06/05/31-47

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10049

	
MCTSZME054R

	
WirePro2000

	
06/05/31-47

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Wire Embedding Machine

	
MCT-10050

	
MCTSZME053R

	
WirePro2000

	
06/05/31-47

	
1

	  

 

	
Attach. 2.2.1 Machinery (MCT)

	
09.12.2009/09:59

	
1/3

 

  

  

  

 

	
Attachement to the

	
Attachement 2.2.1

	
Asset Purchase Agreement

	
Machinery MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
Category

	
Machine status

	
Initial Name

	
STM Asset No.

	
MCT Asset No.

	
Type

	
Ser.No./Ident.No.

	
Qty

	  	  	  	  	  	  	  	  	  	  	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Welding Machine

	
MCT-10073

	
MCTSZME010R

	
Bondpro2000

	
06/05/31-47

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Punching Machine

	
MCT-10063

	
MCTSZME039R

	
Punchpro2000

	
06/05/31-47

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Punching Machine

	
MCT-10061

	
MCTSZME025R

	
Punchpro2000

	
06/05/31-47

	
1

	  
	
3

	
B

	
Machinery

	
Fully Operational

	
Part of 8010W

	
MCT-10213

	
MCTSZME067R

	
1440*1300*152

	
06/06/28-34

	
1

	  
	
3

	
B

	
Machinery

	
Fully Operational

	
Module Implanting Machine

	
MCT-10230

	
MCTSZME075R

	
MTP

	
06/08/28-18

	
1

	  
	
3

	
B

	
Machinery

	
Partly Operational - Slight technical rework required

	
Epoxy Filler Machine

	
MCT-10299

	
MCTSZME027R

	
CTL

	
06/08/28-18

	
1

	  
	
1

	
B

	
Machinery

	
Fully Operational

	
Module Implanting Machine

	
MCT-10229

	
MCTSZME070R

	
MES

	
06/09/19-15

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Punching Machine

	
MCT-10071

	
MCTSZME069R

	
GSM

	
06/09/19-15

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Sheet Punching Machine

	
MCT-10167

	
MCTSZME076

	
SN1-45

	
06/09/30-73

	
1

	  
	
2

	
A

	
Machinery

	
Fully Operational

	
Sheet Punching Machine

	
MCT-10168

	
MCTSZME077

	
SN1-45

	
06/09/30-73

	
1

	  
	
3

	
A

	
Machinery

	
Fully Operational

	
Welding Machine

	
MCT-10074

	
MCTSZME078R

	  	
06/10/27-22

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Broken and will be fixed before shipment

	
Part of 3010

	
MCT-10170

	
MCTSZME082R

	  	
06/11/30-32

	
1

	  
	
1

	
B

	
Machinery

	
Partly Operational - Slight technical rework required

	
Implanting machine

	
MCT-10309

	
no MCT assets code

	
APHL-3

	
06/11/30-47

	
1

	  
	
2

	
B

	
Machinery

	
Fully Operational

	
Milling Machine

	
MCT-10226

	
MCTSZOF399R

	
AICP-3

	
06/11/30-47

	
1

	  
	
1

	
B

	
Machinery

	
Partly Operational - Slight technical rework required

	
Card Tester Round Dask CTS

	
MCT-10303

	
MCTSZME081R

	
CTS

	
06/11/30-47

	
1

	  
	
1

	
A

	
Technical and R&D equipment

	
Broken and will be fixed before shipment

	
Passport Process Machine 3010

	
MCT-10172

	
MCTSZME090

	
OT-IP PR03010

	
06/12/58-58

	
1

	  
	
1

	
A

	
Technical and R&D equipment

	
Fully Operational

	
Passport Process Machine 4010

	
MCT-10020

	
MCTSZME088

	
OT-SP PR04010

	
06/12/58-58

	
1

	  
	
2

	
A

	
Technical and R&D equipment

	
Fully Operational

	
Passport Process Machine 6010

	
MCT-10171

	
MCTSZME089

	
OT-CP PR06010

	
06/12/58-58

	
1

	  
	
3

	
A

	
Machinery

	
Fully Operational

	
Pressing Machine

	
MCT-10162

	
MCTSZME092R

	  	
07/03/31-34

	
1

	  
	
3

	
B

	
Machinery

	
Fully Operational

	
Manual Milling Machine

	
MCT-10227

	
MCTSZME091R

	  	
07/03/31-44

	
1

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
Drilling machine

	
MCT-10205

	
MCTSZOF706

	  	
07/09/30-36

	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Silk Screen Printer

	
MCT-10242

	
MCTSZOF439R

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Miscroscope

	
MCT-10238

	
ME031251

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Specturm Analyer

	
MCT-10234

	  	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Big Oven

	
MCT-10231

	
MCTSZOF240

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Big Oven

	
MCT-10232

	
MCTSZOF441R

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Pad printer

	
MCT-10241

	
OTI property

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Pad copper punch

	
MCT-10245

	
MCTSZOF228R

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Laser Printer (on PVC)

	
MCT-10247

	
MCTSZME036R

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Manual Goillotine

	
MCT-10253

	
MCTSZJF0328

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Manual Goillotine

	
MCT-10254

	
MCTSZJF0332

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Manual Goillotine

	
MCT-10255

	
MCTSZJF0333

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Manual Goillotine

	
MCT-10256

	  	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Manual Goillotine

	
MCT-10257

	  	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Manual Goillotine

	
MCT-10258

	
MCTSZJF029R

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Manual Goillotine

	
MCT-10259

	
MCTSZOF435R

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Manual Goillotine

	
MCT-10260

	
MCTSZJF0334

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Manual Goillotine

	
MCT-10265

	  	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Manual Goillotine With Camera

	
MCT-20261

	
MCTSZOF039R

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Manual Goillotine With Camera

	
MCT-20262

	
MCTSZOF434

	  	  	
1

	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Semi automated hot stamp

	
MCT-10264

	  	  	  	
1

	  

 

	
Attach. 2.2.1 Machinery (MCT)

	
09.12.2009/09:59

	
2/3

 

  

  

  

 

	
Attachement to the

	
Attachement 2.2.1

	
Asset Purchase Agreement

	
Machinery MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
Category

	
Machine status

	
Initial Name

	
STM Asset No.

	
MCT Asset No.

	
Type

	
Ser.No./Ident.No.

	
Qty

	  	  	  	  	  	  	  	  	  	  	  
	
3

	
C

	
Machinery

	
Fully Operational

	
Press machine

	
MCT-10269

	
MCTSZOF551R

	  	  	
1

	  
	
3

	
C

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
Oven

	
MCT-10293

	  	  	  	
1

	  
	
3

	
C

	
Technical and R&D equipment

	
Fully Operational

	
Microscope

	
MCT-10270

	
MCTSZOF398R

	  	  	
1

	  
	
3

	
C

	
Technical and R&D equipment

	
Fully Operational

	
Milling machine

	
MCT-10207

	
MCTSZME084R

	  	  	
1

	  
	
3

	
C

	
Technical and R&D equipment

	
Fully Operational

	
Drilling machine

	
MCT-10208

	
MCTSZOF547

	  	  	
1

	  
	
3

	
C

	
Technical and R&D equipment

	
Fully Operational

	
Polish bench

	
MCT-10209

	  	  	  	
1

	  
	
3

	
C

	
Technical and R&D equipment

	
Fully Operational

	
Polish equipment

	
MCT-10210

	  	  	  	
1

	  
	
3

	
C

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
Turning lathe

	
MCT-10211

	
MCTSZME050R

	  	  	
1

	  
	
3

	
C

	
Technical and R&D equipment

	
Fully Operational

	
Roll laminator 3 units

	
no number

	  	  	  	
1

	  
	
3

	
C

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
Press unit hydraulic

	
MCT-10222

	  	  	  	
1

	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
Sppl-A

	
MCT-10283

	  	  	  	
1

	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
CPL – 1000 Machine (for cards)

	
MCT-10288

	  	  	  	
1

	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
Manual Inkjet Printer

	
MCT-10289

	
OTIME010

	  	  	
1

	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
Sppl-B

	
MCT-10290

	  	  	  	
1

	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
Sppl-A

	
MCT-10291

	  	  	  	
1

	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
E-passport QC

	
MCT-10304

	  	  	  	
1

	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
Supercom ultrasonic machine

	
MCT-10305

	  	  	  	
1

	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
Supercom laser mark

	
MCT-10306

	  	  	  	
1

	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
Ecover press

	
MCT-10307

	  	  	  	
1

	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
Glue Spreading Machine

	
MCT-10308

	  	  	  	
1

	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - Slight technical rework required

	
SPPL - A , with glue unit

	
MCT-10221

	
OTISZME002

	  	  	
1

	  

 

	
Attach. 2.2.1 Machinery (MCT)

	
09.12.2009/09:59

	
3/3

 

  

  

  

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Machinery WIP (MCT)

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
Category

	
Machine status

	
Inventory Item Code

	
Item Description

	
STM Asset No.

	
MCT Asset No.

	
SMT Type

	  	  	  	  	  	  	  	  	  	  
	
1

	
B

	
Machinery

	
Partly Operational - slight technical rework required

	
FG-AICP-2

	
Card Milling

	  	
MCT-10317

	  	
Card Milling

	
2

	
B

	
Technical and R&D equipment

	
Fully Operational

	
FG-AICP5000

	
AICP 5000 Milling Machine - New Demo

	  	
MCT-10200

	  	
Card Milling

	
1

	
B

	
Technical and R&D equipment

	
Fully Operational

	
FG-APHL5000

	
APHL5000 Implanting Machine - New Demo

	  	
MCT-10201

	  	
Card Embedding

	
1

	
A

	
Technical and R&D equipment

	
Fully Operational

	
FG-AS02

	
Abrasion stress

	  	
MCT-10001

	  	
Stress Tester

	
1

	
A

	
Technical and R&D equipment

	
Fully Operational

	
FG-BBS02

	
Pull Sterngh Tester

	  	
MCT-10006

	  	
Stress Tester

	
1

	
A

	
Technical and R&D equipment

	
Fully Operational

	
FG-DBS02

	
Dynamic bend stress

	  	
MCT-10004

	  	
Stress Tester

	
1

	
B

	
Technical and R&D equipment

	
Partly Operational - slight technical rework required

	
FG-GSM3600

	
GSM3600

	  	
MCT-10295

	  	
Sim Card Punch

	
1

	
B

	
Technical and R&D equipment

	
Partly Operational - slight technical rework required

	
FG-GSM5000

	
GSM-5000

	  	
MCT-10202/ /10296/10297

	  	
Sim Card Punch

	
1

	
B

	
Technical and R&D equipment

	
Partly Operational - slight technical rework required

	
FG-ICTP-8

	
Module tester

	  	
MCT-10310/11/12/14

	  	
Chip Module Tester

	
1

	
A

	
Technical and R&D equipment

	
Fully Operational

	
FG-IS02

	
Impact stress

	  	
MCT-10009

	  	
Stress Tester

	
1

	
B

	
Technical and R&D equipment

	
Partly Operational - slight technical rework required

	
FG-MDC

	
Module punch

	  	
MCT-10313

	  	
Chip Module Punch

	
2

	
B

	
Machinery

	
Fully Operational

	
FG-MES-2

	
Module implanting macgine

	  	
MCT-10233

	
MCTSZ0247

	
Combi Module Embedding

	
2

	
B

	
Technical and R&D equipment

	
Fully Operational

	
FG-MHS-D-4

	
Wire embedding machine

	  	
MCT-10060

	  	
Dual Interface Embedder

	
2

	
B

	
Machinery

	
Fully Operational

	
FG-MPS-2

	
Tin-Dispensing machine (for combi)

	  	
MCT-10228

	
MCTSZOF499

	
Automated Combi Card Machine

	
1

	
A

	
Machinery

	
Partly Operational - slight technical rework required

	
FG-OT-GP1010

	
Guide holes punch machine

	  	
MCT-10113

	  	  
	
2

	
A

	
Machinery

	
Partly Operational - slight technical rework required

	
FG-OT-PP2010

	
Auto Punchine Machine

	  	
MCT-10028 /10070

	
MCTSZJF0302 /MCTSZJF0300

	
Top sheet machine

	
2

	
A

	
Technical and R&D equipment

	
Fully Operational

	
FG-PPS02

	
Pull Sterngth Tester

	  	
MCT-10008/10246

	  	
Stress Tester

	
1

	
A

	
Technical and R&D equipment

	
Fully Operational

	
FG-PS02

	
Pen stress

	  	
MCT-10002

	  	
Pen Tester

	
1

	
A

	
Technical and R&D equipment

	
Fully Operational

	
FG-PTS02

	
Page Turning stress

	  	
MCT-10007

	  	
Page Turning Stress

	
2

	
A

	
Machinery

	
Fully Operational

	
FG-PUNCHPRO2000

	
Sheet punch machine

	  	
MCT-10026

	  	  
	
1

	
B

	
Technical and R&D equipment

	
Partly Operational - slight technical rework required

	
FG-SAU04

	
SAU -Sticker Attached Unit

	  	
MCT-10287

	  	  
	
2

	
A

	
Machinery

	
Fully Operational

	
FG-TBM

	
Welding Machine

	  	
MCT-10038

	  	
Bonder

	
2

	
A

	
Machinery

	
Fully Operational

	
FG-TBN

	
Welding Machine

	  	
MCT-10039

	  	
Bonder

	
1

	
A

	
Technical and R&D equipment

	
Fully Operational

	
FG-TS02

	
Torsion stress

	  	
MCT-10003

	  	
Torsion Stress

	
2

	
A

	
Technical and R&D equipment

	
Fully Operational

	
FG-UPH3000

	
New Combi Main Machine

	  	
MCT-10021

	  	
Hera machine, Combi Card Machine

	
2

	
A

	
Machinery

	
Partly Operational - slight technical rework required

	
FG-WBFT

	  	  	
MCT-10040

	  	
Force Tester, Pull test

	
2

	
A

	
Machinery

	
Fully Operational

	
FG-Wirepool 2000

	
Welding Machine

	  	
MCT-10057

	
MCTSZME056R

	  
	
1

	
A

	
Machinery

	
Fully Operational

	
FR005

	
High Speed cards punching

	  	
MCT-10041

	  	
Tester

	
1

	
B

	
Technical and R&D equipment

	
Partly Operational - slight technical rework required

	
FR030

	
Module tester

	  	
MCT-10315

	  	
Tester

	
1

	
B

	
Technical and R&D equipment

	
Partly Operational - slight technical rework required

	
FR033

	
Module tester

	  	
MCT-10316

	  	
Tester

	
2

	
B

	
Machinery

	
Fully Operational

	
FR034

	
Welding machine

	  	
MCT-10079

	
MCTSZJF0292R

	
Sim Card embedder

	
1

	
A

	
Technical and R&D equipment

	
Fully Operational

	
YF0005

	
Page Pull Stess testing Machine

	  	
MCT-10005

	  	
Stress Tester

	
2

	
A

	
Technical and R&D equipment

	
Fully Operational

	
YF0011

	
Glue Machine 8010 W

	  	
MCT-10213

	  	
ePassport inlay machine

	
1

	
A

	
Technical and R&D equipment

	
Only parts or frame

	
YF0013RD

	
Combi machine frame

	  	
MCT-10015/10017

	  	
Combi Auto Line HERA machine

	
2

	
A

	
Technical and R&D equipment

	
Broken and will be fixed before shipment

	
YF0013TW

	
Old Combi Laser Bonding

	  	
MCT-10010

	  	
Combi Auto Line HERA machine (old Hara)

	
1

	
A

	
Technical and R&D equipment

	
Only parts or frame

	
YF0014RD

	
Combi machine Frame

	  	
MCT-10016

	  	
Laser (for the HERA)

	
2

	
A

	
Technical and R&D equipment

	
Broken and will be fixed before shipment

	
YF0014TW

	
Combi Laser Bonding Machine

	  	
MCT-10011

	  	
Laser (for the HERA) old Hara

	
1

	
A

	
Technical and R&D equipment

	
Only parts or frame

	
YF0016RD

	
Combi machine Frame

	  	
MCT-10018

	  	
Combi connecting wire (part of HERA)

	
2

	
A

	
Technical and R&D equipment

	
Broken and will be fixed before shipment

	
YF0016TW

	
Old Combi Connecting Wire Machine

	  	
MCT-10012

	  	
Combi connecting wire (part of HERA) (old Hara)

	
2

	
A

	
Technical and R&D equipment

	
Broken and will be fixed before shipment

	  	
Old Combi Connecting Wire Machine

	  	
MCT-10013

	  	  
	
2

	
A

	
Technical and R&D equipment

	
Fully Operational

	
YF0017

	
Combi Real Prep Machine

	  	
MCT-10022

	  	
part of HERA

	
2

	
A

	
Technical and R&D equipment

	
Fully Operational

	  	
Combi Real Prep Machine

	  	
MCT-10023

	  	  
	
1

	
A

	
Technical and R&D equipment

	
Fully Operational

	
YF0021

	
IC Montioring Machie

	  	
MCT-10025

	  	
Vision system (Test system)

	
2

	
A

	
Technical and R&D equipment

	
Broken and will be fixed before shipment

	
YF0023

	
New Combi Card Autoline Experimental Plan

	  	
MCT-10024

	  	
Combi Line Test

	
1

	
A

	
Machinery (OTC)

	
Fully Operational

	
YF0025

	
V/I tester for Modules

	  	
MCT-10118

	  	
Vision system

	
2

	
A

	
Machinery

	
Fully Operational

	
YF0029

	
Welding Machine New

	  	
MCT-10030

	
not label

	
Embedding New 1

	
2

	
A

	
Machinery

	
Fully Operational

	  	
Welding Machine New

	  	
MCT-10031

	
not label

	
Embedding New 2

	
2

	
A

	
Machinery

	
Fully Operational

	  	
Welding Machine New

	  	
MCT-10032

	
not label

	
Embedding New 3

	
2

	
A

	
Machinery

	
Fully Operational

	  	
Welding Machine New

	  	
MCT-10033

	
not label

	
Embedding New 4

	
2

	
A

	
Machinery

	
Fully Operational

	  	
Welding Machine New

	  	
MCT-10034

	
not label

	
Embedding New 5

	
2

	
A

	
Machinery

	
Fully Operational

	  	
Welding Machine New

	  	
MCT-10035

	
not label

	
Embedding New 6

	
2

	
A

	
Machinery

	
Fully Operational

	  	
Welding Machine New

	  	
MCT-10036

	
not label

	
Embedding New 7

	
2

	
B

	
Machinery

	
Only parts or frame

	
YF0029-1

	  	  	
MCT-10202

	  	  
	
2

	
A

	
Assets under construction

	
Fully Operational

	
YF0032

	
Ecover Machine ,Sovent based 8010S

	  	
MCT-10014

	  	
ePassport Cold Lam Machine

	
1

	
B

	
Technical and R&D equipment

	
Partly Operational - slight technical rework required

	
YF0035

	
GSM-5000

	  	
MCT-10294

	  	  
	
2

	
A

	
Machinery

	
Fully Operational

	
YF0037

	
Laser Cutting Machine

	  	
MCT-10027

	
MCTSZJF0290

	
Laser sheet cutting

	
2

	
A

	
Machinery

	
Fully Operational

	
YF0041

	
Testing Machine

	  	
MCT-10037

	
MCTSZJF397R

	
5 Machines QA 0338 QA0340 QA0337 QA0339

	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
YF0044

	
Milling Machine

	  	
MCT-10205

	
MCTSZOF706

	  
	
3

	
B

	
Technical and R&D equipment

	
Fully Operational

	
YF0045

	
Milling Machine

	  	
MCT-10206

	
MCTSZME083R

	  
	
1

	
A

	
Technical and R&D equipment

	
Fully Operational

	
YF0046

	
Manual Combi Machine

	  	
MCT-10019

	  	
Only head, no generator

	
2

	
C

	
Assets under construction

	
Fully Operational

	  	
e-Cover machine, Solvent based , 8010s

	  	
MCT-10212

	  	  

 

	
Attach. 2.2.1 Mach WIP (MCT)

	
1/2

 

  

  

  

 

	
Attachment to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Machinery WIP (MCT)

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
Category

	
Machine status

	
Inventory Item Code

	
Item Description

	
STM Asset No.

	
MCT Asset No.

	
SMT Type

	  	  	  	  	  	  	  	  	  	  
	
2

	
C

	
Assets under construction

	
Fully Operational

	  	
Press tower 33PCS

	  	
MCT-10215

	  	  
	
2

	
C

	
Assets under construction

	
Fully Operational

	  	
eCover machine, Sovent based, 8010

	  	
MCT-10216

	  	  
	
2

	
C

	
Assets under construction

	
Fully Operational

	  	
eCover machine, Sovent based, 8010

	  	
MCT-10217

	  	  
	
2

	
C

	
Assets under construction

	
Fully Operational

	  	
eCover machine, Sovent based, 8010

	  	
MCT-10218

	  	  
	
2

	
C

	
Assets under construction

	
Fully Operational

	  	
eCover machine, Sovent based, 8010

	  	
MCT-10219

	  	  
	
2

	
C

	
Assets under construction

	
Fully Operational

	
FG-OT-CP6010

	
ETD inlay cutting machine

	  	
MCT-10249

	
MCTSZOF0337

	  
	
2

	
C

	
Assets under construction

	
Fully Operational

	
FG-OT-CP6010

	
ETD inlay cutting machine

	  	
MCT-10250

	
MCTSZOF0338

	  
	
2

	
C

	
Assets under construction

	
Fully Operational

	
FG-OT-CP6010

	
ETD inlay cutting machine

	  	
MCT-10251

	
MCTSZOF0336

	  
	
2

	
C

	
Assets under construction

	
Fully Operational

	
FG-OT-CP6010

	
ETD inlay cutting machine

	  	
MCT-10252

	
MCTSZOF0335

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Card punching machine

	  	
MCT-10166

	
MCTSZOF442R

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Sheet Punching Machine

	  	
MCT-10068

	
MCTSZME019R

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Sheet Punch machine

	  	
MCT-10070

	
MCTSZJF0300

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Welding Machine

	  	
MCT-10076

	
MCTOF558R

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Welding Machine

	  	
MCT-10077

	
MCTSZME040R

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Manual Milling Machine

	  	
MCT-10225

	
MCTSZME091R

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Desk top manual impleter unit

	  	
MCT-10240

	
MCTSZOF553R

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Attaching glue to modules unit

	  	
MCT-10239

	
MCTSZOF396R

	  
	
1

	
C

	
Machinery

	
Fully Operational

	  	
Desk top manual impleter unit

	  	
MCT-10235

	
MCTSZME004R

	  
	
1

	
C

	
Machinery

	
Fully Operational

	  	
Desk top manual impleter unit

	  	
MCT-10236

	
MCTSZOF544R

	  
	
1

	
C

	
Machinery

	
Fully Operational

	  	
Desk top manual impleter unit

	  	
MCT-10237

	
MCTSZOF555R

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Pull Tester

	  	
MCT-10246

	  	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Manual Punch Machine

	  	
MCT-10248

	
MCTSZME072R

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Manual sheets stacking machine

	  	
MCT-10266

	
MCTSZME086R

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Manual sheets stacking machine

	  	
MCT-10267

	
MCTSZME051R

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Manual sheets stacking machine

	  	
MCT-10268

	
MCTSZME0022R

	  
	
1

	
C

	
Machinery

	
Partly Operational - slight technical rework required

	  	
Manual Hot Stamping Machine

	  	
MCT-10284

	  	  
	
1

	
C

	
Machinery

	
Partly Operational - slight technical rework required

	  	
Manual Hot Stamping Machine

	  	
MCT-10285

	  	  
	
1

	
C

	
Machinery

	
Partly Operational - slight technical rework required

	  	
Manual Hot Stamping Machine

	  	
MCT-10286

	  	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - slight technical rework required

	  	
Milling MCTAICP5000

	  	
MCT-10292

	  	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - slight technical rework required

	  	
AICP-5000

	  	
MCT-10300

	  	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - slight technical rework required

	  	
Card Tester Round Dask CTS

	  	
MCT-10301

	
MCTSZME085R

	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - slight technical rework required

	  	
Semi auto Soldering MTS

	  	
MCT-10302

	
MCTSZME087R

	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - slight technical rework required

	  	
Card Tester Round Dask CTS

	  	
MCT-10303

	  	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Small punch Desk top

	  	
MCT-10064

	
no MCT assets code

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Guiding holes punch machine

	  	
MCT-10065

	
MCTSZOF548R

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Guiding holes punch machine

	  	
MCT-10066

	
MCTSZME012R

	  
	
2

	
C

	
Machinery

	
Fully Operational

	  	
Wire Embedding Machine

	  	
MCT-10052

	
MCTSZJF0287

	  
	
1

	
C

	
Technical and R&D equipment

	
Partly Operational - slight technical rework required

	  	
Laser cutting Machine (not working) Laser including

	  	
MCT-10203

	  	  
	
1

	
C

	
Technical and R&D equipment

	
Fully Operational

	  	
Laser cutting Machine (not working) Laser including

	  	
MCT-10204

	  	  
	
1

	
C

	
Technical and R&D equipment

	
Only parts or frame

	  	
Auto Inlay Machine

	  	
MCT-10220

	  	  
	
2

	
C

	
Technical and R&D equipment

	
Fully Operational

	  	
Press Units manual 46pcs

	  	
MCT-10223

	  	  

 

	
Attach. 2.2.1 Mach WIP (MCT)

	
2/2

 

  

  

  

 

	
Attachement to the

	
Attachment 2.2.1

	
Asset Purchase Agreement

	
Lead Frame

	
between MCT, OTI and SMARTRAC

	  

 

	
Group

	
Imp.

	
Category

	  	  	  
	
1

	
A

	
Lead Frame Development

 

	
Attach. 2.2.1 Lead Frame (OTI)

	
1/1

 

  

  

  

 

	
Attachment to the

	
Attachement 2.2.1

	
Asset Purchase Agreement

	
Transportation Equipment MCT

	
between MCT, OTI and SMARTRAC

	  

 

	
MCT

	  	  	  	  	  	  	  	  	  	  
	
Group

	
Imp.

	
Class.

	
Machine status

	
MCT groups

	
Descr.

	
Name

	
Type

	
Ser.No./Ident.No.

	Qty
	 	  	  	  	  	  	  	  	  	  	  
	
3

	
B

	
Transport. Equipment

	
Fully Operational

	
Other equipment

	
Vehicle

	
truck

	
06/06/15-11

	
ZN1031U2G

	
1

	 

 

	
Attach. 2.2.1 Transp. (MCT)

	
1/1

 

  

  

  

 

	

Attachment 2.2.2 (i) and (ii) List of specific Intellectual Property Rights

Attachement to the

First Amendment to

Agreement as of September 15th, 2009

between SMARTRAC, OTI and MCT

	
EXHIBIT 1

List of Trademarks

“A-Assets”

 

	
Country

	
Description

	
Type

	
Status

	 	
Patent Nr.

	
Application Nr.

	
Comments

	  	  	  	  	  	  	  	  
	
HK

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Pat. Sh. Term

	
Grant.

	
Nat.

	
HK1109708

	
07104374-1

	  
	  	  	  	  	  	  	  	  
	
PC

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent

	
Pend.

	
P.C.T.

	  	
'PCT/IL2007/001378

	  
	  	  	  	  	  	  	  	  
	
EP

	
APPARATUS AND PROCESS FOR PRODUCING DOCUMENT CORE  INLAYS

	
Patent

	
Pend.

	
P.C.T.

	  	
06705558-2

	  
	  	  	  	  	  	  	  	  
	
CN

	
APPARATUS AND PROCESS FOR PRODUCING DOCUMENT CORE INLAYS

	
Patent

	
Pend.

	
P.C.T.

	  	
200680053641-7

	  
	  	  	  	  	  	  	  	  
	
IN

	
APPARATUS AND PROCESS FOR PRODUCING DOCUMENT CORE INLAYS

	
Patent

	
Pend.

	
P.C.T.

	  	
1599/MUMNP/2008

	  
	  	  	  	  	  	  	  	  
	
KR

	
APPARATUS AND PROCESS FOR PRODUCING DOCUMENT CORE INLAYS

	
Patent

	
Pend.

	
P.C.T.

	  	
10-2008-7020450

	  
	  	  	  	  	  	  	  	  
	
US

	
APPARATUS AND PROCESS FOR PRODUCING DOCUMENT CORE INLAYS

	
Patent

	
Pend.

	
P.C.T.

	  	
12/162252

	  
	  	  	  	  	  	  	  	  
	
ID

	
APPARATUS AND PROCESS FOR PRODUCING DOCUMENT CORE INLAYS

	
Patent

	
Pend.

	
P.C.T.

	  	
W-200802455

	  
	  	  	  	  	  	  	  	  
	
US

	
ELECTRONIC INLAY STRUCTURE AND METHOD OF MANUFACTURE THEROF

	
Patent

	
Pend.

	
Nat.

	  	
11/985534

	  
	  	  	  	  	  	  	  	  
	
TW

	
ELECTRONIC INLAY STRUCTURE AND METHOD OF MANUFACTURE THEROF

	
Patent

	
Pend.

	
Nat.

	  	
97144246

	  
	  	  	  	  	  	  	  	  
	
PC

	
ELECTRONIC INLAY STRUCTURE AND METHOD OF MANUFACTURE THEROF

	
Patent

	
Pend.

	
P.C.T.

	  	
PCT/IL2008/001485

	  
	  	  	  	  	  	  	  	  
	
TH

	
ELECTRONIC INLAY STRUCTURE AND METHOD OF MANUFACTURE THEROF

	
Patent

	
Pend.

	
Nat.

	  	
0801005822

	  
	  	  	  	  	  	  	  	  
	
CL

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent

	
Pend.

	
Nat.

	  	
113-2008

	  
	  	  	  	  	  	  	  	  
	
TW

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent

	
Pend.

	
Nat.

	  	
96142616

	  
	  	  	  	  	  	  	  	  
	
TH

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent

	
Pend.

	
Nat.

	  	
0801000192

	  
	  	  	  	  	  	  	  	  
	
AR

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent

	
Pend.

	
Nat.

	  	
P080101717

	  
	  	  	  	  	  	  	  	  
	
PC

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent

	
Pend.

	
P.C.T.

	  	
PCT/IL2008/001397

	  
	  	  	  	  	  	  	  	  
	
TW

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME (COMBI OLD)

	
Patent

	
Pend.

	
Nat.

	  	
97114420

	  

 

  

  

  

 

	
Country

	
Description

	
Type

	
Status

	  	
Patent Nr.

	
Application Nr.

	
Comments

	  	  	  	  	  	  	  	  
	
TH   

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING THE SAME

	
Patent   

	
Pend.   

	
Nat.   

	
       

	
801005520   

	
       

	  	  	  	  	  	  	  	  
	
PC   

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING THE SAME (COMBI IMPROVEMENT)

	
Patent   

	
Pend.   

	
P.C.T.   

	
       

	
PCT/IL2008/000538   

	
       

	  	  	  	  	  	  	  	  
	
TW   

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING THE SAME (COMBI IMPROVEMENT)

	
Patent   

	
Pend.   

	
Nat.   

	
       

	
97141043   

	
       

	  	  	  	  	  	  	  	  
	
PC

	
MANUFACTURE OF A SMART CARD INLAY

	
Patent

	
Pend.

	
P.C.T.

	
   

	
PCT/IL2009/000095

	
   

	  	  	  	  	  	  	  	  
	
US

	
Method of forming a dual-interface IC card and a card formed of

such a method

	
Patent

	
Grant.

	
Nat.

	
6881605

	
10/044958

	
     

	  	  	  	  	  	  	  	  
	
TW

	
METHOD OF MANUFACTURING OF WIRED IMBEDDED INLAY

	
Patent

	
Pend.

	
Nat.

	
     

	
97144243

	
     

	  	  	  	  	  	  	  	  
	
US

	
METHOD OF MANUFACTURING OF WIRED IMBEDDED INLAY

	
Patent

	
Pend.

	
Nat.

	
   

	
11/985529

	
   

	  	  	  	  	  	  	  	  
	
PC

	
METHOD OF MANUFACTURING OF WIRED IMBEDDED INLAY

	
Patent

	
Pend.

	
P.C.T.

	
   

	
PCT/IL2008/001484

	
   

	  	  	  	  	  	  	  	  
	
TH

	
METHOD OF MANUFACTURING OF WIRED IMBEDDED INLAY

	
Patent

	
Pend.

	
Nat.

	
   

	
0801005821

	
   

	  	  	  	  	  	  	  	  
	
US   

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent   

	
Pend.   

	
'P.C.T   

	
       

	
'12/569,893   

	
       

	  	  	  	  	  	  	  	  
	
EP   

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent   

	
'Pend.   

	
'P.C.T   

	
       

	
7827351.3   

	
       

	  	  	  	  	  	  	  	  
	
INDIA   

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent   

	
'Pend.   

	
'P.C.T   

	
       

	
7433/DELNP/2009   

	
       

	  	  	  	  	  	  	  	  
	
CN   

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent   

	
'Pend.   

	
'P.C.T   

	
       

	
TO BE FILED BY DECEMBER 24, 2009   

	
Translation is in preparation   

	  	  	  	  	  	  	  	  
	
KR   

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent   

	
'Pend.   

	
'P.C.T   

	
       

	
10-2009-7024350   

	
       

	  	  	  	  	  	  	  	  
	
BR   

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent   

	
'Pend.   

	
'P.C.T   

	
       

	
NOT YET KNOWN   

	
       

	  	  	  	  	  	  	  	  
	
KR   

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent   

	
'Pend.   

	
'P.C.T   

	
       

	
10-2009-7024341   

	
       

	  	  	  	  	  	  	  	  
	
BR   

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent   

	
'Pend.   

	
'P.C.T   

	
       

	
NOT YET KNOWN   

	
       

	  	  	  	  	  	  	  	  
	
INDIA

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent   

	
'Pend.   

	
'P.C.T   

	
       

	
7434/DELNP/2009   

	
Translation is in preparation   

	  	  	  	  	  	  	  	  
	
CHINA

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent   

	
'Pend.   

	
'P.C.T   

	
       

	
TO BE FILED BY DECEMBER 24, 2009

	
       

	  	  	  	  	  	  	  	  
	
INDONESIA

	
ELECTRONIC INTERFACE APPARATUS AND METHOD AND SYSTEM FOR MANUFACTURING SAME

	
Patent   

	
'Pend.   

	
'P.C.T   

	
       

	
W-00 2009 02973   

	
      

 

  

  

  

  

 

TRADEMARKS

 

	HERA (Dual Interface Line)
	 
	
Country

	 	
App. No.

	 	
Filed

	 	
Trademark No.

	 	 	
Class

	 	
Date of Grant

	 	
Next Renewal

	 	
Status/Next action

	
Israel

	 	 	205540	 	
12/11/2007

	 	 	205540	 	 	 	07	 	  	 	  	 	
Registered

	
Israel

	 	 	205541	 	
12/11/2007

	 	 	205541	 	 	 	09	 	  	 	  	 	
Registered

	
China

	 	 	6379204	 	
14/11/2007

	 	 	 	 	 	 	07	 	  	 	  	 	
In Examination

	
China

	 	 	6379204	 	
14/11/2007

	 	 	 	 	 	 	09	 	  	 	  	 	
In Examination

	
Community 

Trademark

	 	 	6427991	 	
21/11/2007

	 	 	 	 	 	 	07, 09	 	  	 	  	 	
Opposed, under settlement discussions

	
Republic of Korea

	 	 	40-2007-58522	 	
14/11/2007

	 	 	 	 	 	 	07, 09	 	  	 	  	 	
Refused by the examiner, appeal was not filed

	
Taiwan

	 	 	96054538	 	
19/11/2007

	 	 	 	 	 	 	07, 09	 	  	 	  	 	
In Examination

	
U. S. A.

	 	 	77/339,019	 	
28/11/2007

	 	 	 	 	 	 	07, 09	 	  	 	  	 	
In Examination

 

	
MCT

	 
	
Country

	 	
App. No.

	 	
Filed

	 	
Trademark No.

	 	 	
Class

	 	
Date of Grant

	 	
Next Renewal

	 	
Status/Next action

	
Hong Kong

	 	 	300941346	 	
25/08/2007

	 	 	300941346	 	 	 	07, 09, 42	 	
4/3/2008

	 	
24/08/2017

	 	
In renewal

 

  

  

  

 

	
Attachement to the

Asset Purchase Agreement

between OTI and SMARTRAC

	
Attachment 2.3

Trademarks

 

	
ZEUS (Passport Production Line)

	 
	
Country

	 	
App. No.

	 	
Filed

	 	
Trademark No.

	 	 	
Class

	 	
Date of Grant

	 	
Next Renewal

	 	
Status/Next action

	
Israel

	 	 	205542	 	
12/11/2007

	 	 	205542	 	 	 	07	 	  	 	  	 	
Registered

	
Israel

	 	 	205543	 	
12/11/2007

	 	 	205543	 	 	 	09	 	  	 	  	 	
Registered

	
China

	 	 	6379204	 	
21/11/2007

	 	 	 	 	 	 	07	 	  	 	  	 	
In Examination

	
China

	 	 	6379203	 	
21/11/2007

	 	 	 	 	 	 	09	 	  	 	  	 	
In Examination

	
Community Trademark

	 	 	006447817	 	
19/11/2007

	 	 	006447817	 	 	 	07, 09	 	  	 	  	 	
Registered

	
Republic of Korea

	 	 	40-2007-60045	 	
22/11/2007

	 	 	 	 	 	 	07, 09	 	  	 	  	 	
Allowed

	
Taiwan

	 	 	96055403	 	
23/11/2007

	 	 	 	 	 	 	07, 09	 	  	 	  	 	
In Examination

	
U. S. A.

	 	 	77/333790	 	
20/11/2007

	 	 	 	 	 	 	07, 09	 	  	 	  	 	
In Examination

	
Malaysia

	 	 	07024613	 	
13/12/2007

	 	 	 	 	 	 	09	 	  	 	  	 	
Published

	
Malaysia

	 	 	07024614	 	
13/12/2007

	 	 	 	 	 	 	09	 	  	 	  	 	
Published

 

  

  

  

 

Attachment 2.2.3                                Inventories

 

[an actual overview shall be provided at the Closing Date]

 

  

  

  

 

Attachment 2.2.5                                Technical Books and Records

 

 

Please refer to CD-ROM attached to the Agreement

 

  

  

  

 

Attachment 2.2.6                                Assumed Agreements

 

The Assumption of the following agreements is subject to additional terms under this Agreement:

 

PURCHASE AGREEMENT

This Purchase Agreement (the “Agreement”) is made by and between

 

***

Hereinafter referred to as *** “Buyer”;  and    

ON TRACK INNOVATIONS Ltd (OTI), a company incorporated under the laws of ISRAEL at the Companies House of Z.H.R. Industrial Zone, Rosh Pina, Israel under the No 52-004286-2, represented by Mr. Oded Bashan as Chief Executive Officer.

Hereinafter referred to as the “Supplier” or “OTI”.

Collectively referred to as the “Parties” or individually to as the “Party”.

Whereas, the Parties agree to have their relationship which shall consist of the delivery by Supplier of antennae for Dual card and Contractless card pursuant to ***  (the “Purpose”) governed by *** General Conditions of Purchase as attached herein (Appendix 1);

Whereas, at Supplier’s request *** has accepted, on a derogation basis, and in due consideration to the further possible volume and their contemplated business relationship, to supplement and modify certain of the provisions of the General Conditions of Purchase;

The Parties have agreed to the following:

Article 1 – MODIFICATIONS TO THE ARTICLE ‘‘ORDERS”

The Parties agree to delete the entire article 1 of the General Conditions of Purchase and to replace it with the following:

“Any order shall be governed exclusively by the General Conditions of Purchase set out hereinafter and, where applicable, the special conditions set out on the order. Acceptance by the supplier of one of our orders automatically implies agreement to waive the supplier’s right to require application of the provisions of its commercial paper and its own general conditions of sale or any other conditions of any kind.

An order shall be deemed accepted by the supplier provided that supplier sends to *** a written Order Acknowledgement within three (3) working days, either by post, electronic data exchange, facsimile or email, in which supplier shall confirm the part number, the ordered quantity, price, delivery place and the delivery date. Once the Order Acknowledgement is issued by supplier, the Order cannot be cancelled or changed, unless otherwise mutually agreed or as provided under Article 3 herein.”

Article 2 – MODIFICATIONS TO THE. ARTICLE “DELIVERY”

The Parties agree to delete the entire article 3 of the General Conditions of Purchase and to replace it with the following:

“The supplier shall follow the instructions which it receives regarding the place of delivery.

The date set for delivery is indicated in the order and is imperative, subject to application of the special conditions agreed between the parties with regard to ‘open’ orders including a ‘sliding schedule’, to be confirmed on a regular basis. 

 

  

  

  

 

Supplier may, at least fourteen (14) working days prior to the originally scheduled delivery date and subject to *** reschedule the delivery date and/or quantity of an Order, except that, with respect to the originally scheduled date, such updated delivery date shall not occur after (i) (6) months if Modules are delivered by *** one (1) month if Modules are purchased by supplier.”

Article 3 – MODIFICATIONS TO THE ARTICLE “PRICES”

The Parties agree to delete the entire article 7 of the General Conditions of Purchase and to replace it with the following:

“Unless otherwise stated in the order, prices are indicated DDU. OT location specified in the order, which shall be either *** Incoterms, 2000). Prices are definitive and fixed and they cannot be revised in the light of changing economic circumstances. Likewise, unless otherwise indicated, these prices include packaging on the goods as required for their protection during storage as well as the appropriate packing materials and items required for transportation in line with article 5 above.

Article 4 – MODIFICATIONS TO THE ARTICLE “SETTLEMENT OF INVOICES”

The Parties agree to delete the entire article 9 of the General Conditions of Purchase and to replace it with the following:

“Unless otherwise stated in the order, no advance payments will be made when orders are placed.

 

Unless otherwise agreed to in writing by both parties, invoices shall be settled by means of bills to order or bills of exchange redeemable sixty (60) days after the issuance of a valid invoice. This period shall be calculated on the basis of the actual delivery date, on the understanding that the amount paid takes account of any late delivery penalties as detailed in article 10 below.

 

It is however understood between the Parties that payment terms may be extended upon mutual agreement should the annual volume of the orders (taxes excluded). Late payments penalties shall be capped to three (3) times the legal interest rate applicable at the time payment is overdue.”

Article 5 – MODIFICATIONS TO THE ARTICLE “DELAYS IN DELIVERIES, LATE DELIVERY PENALTIES”

The Parties agree to delete the entire article 10 of the General Conditions of Purchase and to replace it with the following:

“Any deliveries made after the contractual date (i.e. the date stipulated on the order or a subsequent date explicitly agreed to by ourselves) shall, after a five (5) calendar day-grace period, lead to the supplier incurring late delivery payments.

The amount of these penalties – which shall be credited *** credit note forthwith upon receipt of an invoice describing same - shall correspond either to the losses and expenses incurred by us as a result of the supplier’s failure to comply with its obligations, or to a percentage of the value of the late delivery. Unless otherwise stipulated, this percentage shall be 2% (two per cent) per week for the first two (2) weeks; it shall subsequently increase to 5% (five per cent) per week. These penalties shall however be capped at 20% (twenty per cent) of the value of the late delivery. 

Any delay of over one (1) month may lead to the application of the article 13 below.”

Article 6 – MODIFICATION TO THE ARTICLE “WARRANTY”

The Parties agree to modify the article 6 of the General Conditions of Purchase by adding thereto the new following sub-sections:

 

***

 

  

  

  

 

Except as otherwise modified herein, the General Conditions of Purchase as modified hereby shall remain in full force and effect and the Agreement shall enter into force for a period of three (3) years starting from the latest date of the signature of the Agreement, which shall form the entire and sole agreement between the Parties with respect to the Purpose.

 

  

  

  

 

	***	 	ON TRACK INNOVATIONS (OTI)
	 	 	 
	
Dale 15/06/09

	  	
Date

	  	  	  
	
Signature 

	***	
Signature 

	
  

 

APPENDIX 1

*** GENERAL CONDITIONS OF PURCHASE

(APPLICABLE AS FROM JANUARY 2008)

ARTICLE 1– ORDERS

Any order shall be governed exclusively by the general conditions set out hereinafter and, where applicable. The special conditions set out on the order. Acceptance by the supplier of one of our orders automatically implies agreement to waive the supplier’s right to require application of the provisions of its Commercial paper and its own generaI conditions of sale or any other conditions of any kind. An order shall be deemed accepted by the supplier unless (i) the supplier has expressed reservations in writing within 10 (ten) days of its receipt and (ii) these reservations have been formally accepted by ourselves.

ARTICLE 2 – COMPLIANCE WITH REGULATIONS

The goods and services ordered shall comply in all respects with current legal and regulatory provisions, particularly as regards:

	 	●	the quality, composition, presentation and labelling of goods;
	 	
●

	
compliance with the requirements set out an environmental regulations;

	 	
●

	
workplace and employment law.

 

In addition to this, those items covered by official standards *** ISO, EU etc.) shall be delivered in a state which meets the relevant requirements in full. 

*** together with the decrees and related circulars specifying the provision applicable concurring undsclared work, and to supply *** the necessary certificates for the ***.

ARTICLE 3 – DELIVERY

The supplier shall follow the instruction which it receives regarding the place of delivery.

The date set for delivery is indicated in the order and is imperative, subject to application of the special conditions agreed between the parties with regard to ‘open’ orders including a ‘sliding schedule’ to be confirmed on a regular basis.

Unless the supplier formally objects within ten (10) days of the date on which it receives notification from us, we reserve the option of *** the quantities and delivery dates initially agreed upon. Any delivery made before the date specified in our order will only be accepted if we give prior permission for this.

ARTICLE 4 – INSPECTION

No consignment may be dispatched without the supplier drawing up beforehand a certificate stating that the goods meet the specifications contained in our order. Should these specifications indicate that special tests are required, an account of these tests shall be included in reports to be sent with the certificate, referred to below.

ARTICLE 5 – CONSIGNMENTS

All consignments shall include a consignment note in duplicate, in which the supplier gives all the information required for identification of the package (and in particular our order references and the nature and quantity of the goods enclosed). The package shall also contain the certificates and test reports drawn up by the supplier as required under article 4 above. Consignment notes shall be provided even in the case of collection of the items by us. In the case of deliveries by third parties, the consignment notes shall be placed within the package. A label clearly visible on the outside of the packaging shall indicate the following details: delivery number and place of delivery.

The conditions of carriage shall b e covered by specific provisions set out in the order. Failing this, the supplier itself shall take charge of transportation and insurance for the goods transported to the location indicated by us.

ARTICLE 6 – TRANSFER OF OWNERSHIP, TRANSFER OF RISKS

The transfer of ownership shall take place in accordance with the general law regarding sale of goods, notwithstanding any ownership retention clause, which cannot be applied to our company unless a copy of it is signed by one of our duly empowered representatives.

The transfer of risks takes place when the goods are delivered to the location indicated on the order - alternatively it takes place when the goods are collected from the supplier’s premises.

ARTICLE 7 – PRICES

Unless otherwise stated in the order, prices indicated therein are definitive and fixed - they cannot be revised in the light on changing economic circumstances.

Likewise, unless otherwise indicated these prices include packaging of the goods as required for the protection during storage as well as the appropriate packing materials and items required for transportation in line with article 5 above.

The supplier shall take full charge of, and responsibility for disposing of the packaging once the goods have been unpacked.

ARTICLE 8 – INVOICING

The supplier shall draw up invoices within three days of the delivery as defined in article 3 above. These invoices, drawn up in implicate, shall be sent as the following address: ***

We reserve the right to reject invoices for and deliveries of any *** for which we have not placed an order in the prescribed form.

ARTICLE 9 – SETTLEMENT OF INVOICES

Unless otherwise stated in the order to advance payments will be made when orders are placed.

Unless otherwise agreed to in writing by both parties, invoices shall be settled by means of bills to order or bills of exchange redeemable 90 days after the end of the month in which delivery takes place on the 10th of the following month. This period shall be calculated on the basis of the actual delivery date, on the understanding that the amount paid takes account of any late delivery penalties as detailed in article 10 below.

ARTICLE 10 – DELAYS IN DELIVERIES, LATE DELIVERY PENALTIES

Any deliveries made after the contractual date (i.e. the date stipulated on the order or a subsequent date explicitly agreed to by ourselves) shall automatically lead to the supplier incurring late delivery payments.

The amount of these penalties - which shall be deducted from the invoice settlements as indicated in article 9 above - shall correspond either to the losses and expenses incurred by us as a result of the supplier’s failure to comply with its obligations, or to a percentage of the value of the late delivery. Unless otherwise stipulated, this percentage shall be 2% (two per cent) per week for the first two weeks; it shall subsequently increase to 5% (five per cent) per week. These penalties shall however be capped at twenty-five per cent (25%) of the value of the late delivery.

Any delay of over one month may lead to our applying article 13 below.

ARTICLE 11 – WARRANTY

The supplier shall take all appropriate steps, entirely at its own expenses, to remedy any defects in the goods. It shall fully indemnify and hold harmless us from and against any and all losses, damage and expenses incurred as a result of these defects.

Should the supplier be unable to implement the present clause satisfactorily, we reserve the right to have the necessary work carried out at the expense of the supplier, without prejudice to the application of the termination clause.

The supplier certifies that the goods delivered and / or the service provided are not subject to any rights held by third parties and in particular that they are unencumbered by any third-party industrial or intellectual property rights. The supplier fully guarantees us against all legal proceedings and claims for damages in this connection.

  

  

  

 

ARTICLE 12 – CONFIDENTIALITY

The supplier agrees to maintain the confidentiality of all the technical and commercial information with which we supply it to enable it to carry out our order.

ARTICLE 13 – TERMINATION FOR FAULT OF THE SUPPLIER

If the supplier is in breach of any of its obligations under our order - and fails to remedy the breach within fifteen (15) days after written notice by us, except in those cases referred to in articles 10 and 11 when no formal notice is required - we reserve the right to terminate our order without any need to carry out any legal formalities.

ARTICLE 14 – SETTLEMENT OF DISPUTES

UNLESS OTHERWISE AGREED TO IN WRITING BY BOTH PARTIES, THE PRESENT GENERAL CONDITIONS OF PURCHASE SHALL BE GOVERNED *** EFFECT TO ITS CONFLICTS OF LAW PRINCIPLES) TO THE EXCLUSION OF THE UN CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS. ANY DISPUTES ARISING WITH REGARD TO THE INTERPRETATION OR PERFORMANCE OF OUR ORDERS SHALL, UNLESS A ‘FRIENDLY SETTLEMENT’ IS REACHED, BE DEFINITIVELY SETTLED BY THE COURTS HOLDING JURISDICTION OVER OUR REGISTERED OFFICE.

  

  

  

 

Attachment 5.1                                List of Machine Sale Agreements

 

	
A.  

	
Gemalto – 4 punching machines (2 in 3/2008 and 2 in 12/2008).

 

	
B.  

	
Gemalto – 3 milling machines (1 in 3/2008 and 2 in 12/2008).

 

	
C.  

	
Syscom – 5 SIM lines machines (9/2007).

 

	
D.  

	
Gemalto – 2 milling machines (end of 9/2009).

 

  

  

  

 

Attachment 6.10                                Machinery and manufacturing equipment sold during the Period

 

	
List of machine sold since July, 2009

	  	  	  	  

 

	
Item

	
Name

	
Model

	
Qty.

	
Customer

	
Delivery Date

	
1

	
Milling machine

	
AICP5000-1

	
2pcs

	
Shanghai GMT

	
Oct, 2009

  

 

  

  

 

Attachment 7.1                                Shut-Down Concept

 

 

Shutdown Concept

This document is intended to describe a plan according to which MCT will shutdown. The plan comprises three consecutive phases, in accordance to the groups of assets (i.e., Group 1, Group 2 and Group 3) as defined in the APA between Smartrac and MCT. The three phases are as follows:

 

MCT will apply for a license from the Chinese authorities, for the transfer of assets which are defined as Group 1 to Hong Kong. Upon the reception of such license from the Chinese authorities, MCT will transfer the assets which are classified as Group 1 to Hong Kong, and from there Smartrac will be able to ship it to wherever they choose.

Upon completion of MCT’s production commitment to its customers, MCT will cease its operations regarding the manufacturing and sale of wire embedding inlays, wire embedding based cards and the machines which were manufactured by MCT prior to the closing date. In addition, MCT will apply for additional license from the Chinese authorities for the assets which are classified as Group 2. Following the reception of such license MCT will transfer the assets which are classified as Group 2 to Hong Kong. However, in order to ease the process with the Chinese authorities, the process of applying for license and transferring the assets for Group 2 will be done gradually, and will repeat itself until all the machines which are classified as Group 2 will be outside China (i.e., in Hong Kong or anywhere else that Smartrac will choose).

When all the assets which are classified as Group 2 will be out of China, and in order to ease and simplify the transfer of assets, MCT may apply for a license for transfer part or all of Group 3 assets. Following the reception of such license MCT will transfer the said assets to Hong Kong. However, in order to ease the process with the Chinese authorities, this process will be done gradually, and will repeat itself until all of the applied and granted Group 3 assets will be outside China (i.e., in Hong Kong or anywhere else that Smartrac will choose).

 

	Page 1 of  4	

Confidential

  

  

  

 

 

Following the completion of transfer of Group 3 assets (for those the Chinese authorities granted license) and in case there are additional Group 3 assets to be transferred or in case it was concluded that such transfer will be impractical without declaring the closure of MCT, MCT will declare its closure to the Chinese authorities and will follow the instructions given by the Chinese authorities, and at the same time will apply to the Chinese authorities for license to the  transfer of the remaining Group 3 assets, to Hong Kong. If such approval is given by the Chinese authorities, MCT will transfer the remaining assets to Hong Kong.

 

	Page 2 of  4	

Confidential

  

  

  

 

 

 

 

	Page 3 of  4	

Confidential

  

  

  

 

 

Comments:

	
1.  

	
In any step of the process the Chinese authorities might get involved and/or interfere in unpredictable ways. MCT will take all measures to minimize the chance of such involvement, for example by splitting phase 2 into several cycles, but in a scenario that the Chinese authorities cause some hindrances in the process, the entire plan described above will be subject to changes, in accordance to the Chinese authorities instructions.

	
2.  

	
Following phase 2, in case that MCT’s rental contract comes to an end prior the completion of the shutdown plan, MCT will transfer all its assets and raw materials from its current premises to a designated warehouse inside FuTian Free Trade Zone, Shenzhen, China, provided by Smartrac.

 

	Page 4 of  4	

Confidential

  

  

  

 

Attachment 7.6                                List of “A-Assets”

 

Please refer to Attachment 2.2.1

 

  

  

  

 

Attachment 7.7                                Asset Status List

 

Please refer to Attachment 2.2.1

 

  

  

  

 

Attachment 7.8                                List of assets according to Group 1 - 3

 

Please refer to Attachment 2.2.1exhibit_4-13.htm

Exhibit 4.13

 

**CONFIDENTIAL PORTIONS HAVE BEEN OMITTED PURSUANT TO A 

REQUEST FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED 

SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION 

(THE “COMMISSION”).**

(Unofficial English translation from Spanish original)

 

CONTRACT FOR THE “SUPPLY, INTEGRATION AND MAINTENANCE SERVICES, OF THE NATIONWIDE IT SOLUTION OF THE TECHNOLOGICAL MODERNIZATION PROJECT OF THE DIRECCION GENERAL DE REGISTRO CIVIL, IDENTIFICACIÒN Y CEDULACION.”

The following parties appear for the signing of this Contract, (Hereinafter indistinctively: the “Contract” or the “Agreement”): the Dirección General de Registro Civil, Identificación y Cedulación, represented by Ing. Paulo Rodríguez Molina, acting as General Director, whose legal capacity is credited by the document issued by the SENPLADES and the employment title issued by Ing. Adriana Murillo, Director of Human Resources of the Institution, which are attached to this instrument as supporting documents; and henceforth and for purposes of this Contract, referred to as “THE CONTRACTING PARTY” or “THE CUSTOMER”; and, ON TRACK INNOVATIONS LTD OTI, a company of Israeli nationality duly domiciled in Ecuador, legally represented by Ing. Diego Luis Rueda Mosquera, in his capacity as proxy with legal capacity, according to the accompanying document, and that henceforth and for purposes of this Contract will be referred to as “THE CONTRACTOR” or “THE COMPANY”; and, by the rights they represent, freely and voluntarily agree to enter into this Contract according to the content of the following clauses::

FIRST.- BACKGROUND:

	
1.1.

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

	
1.2.

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

 

  

  

  

 

	
1.3.

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

 

	
1.4.

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

 

	
1.5.

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

 

	
1.6.

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

 

	
1.7.

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

 

	
1.8.

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

 

	
1.9.

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

 

	
1.10.

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

 

	
1.11.

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

 

  

2

  

 

	
1.12.

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

 

	
1.13.

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

SECOND .- CONTRACT DOCUMENTS:

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

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

	
  

	
2.1.1.

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

	
  

	
2.1.2

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

	
  

	
2.1.3.

	
The Resolution that declares the institutional emergency;

	
  

	
2.1.4.

	
The Resolution that declares the beginning of the Direct Contracting Process;

	
  

	
2.1.5.

	
The Certification of budget availability; and,

	
  

	
2.1.6.

	
The Award Resolution.

 

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

	 	

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

	
  

	
-

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

	
  

	
-

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

	
  

	
-

	
5.3 Project management methodology

	
  

	
-

	
5.4 Maintenance obligations

	
  

	
-

	
5.5 Confidentiality obligations

	
  

	
-

	
5.6 Form formats”

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

 

  

3

  

 

2.2.3. The following Guarantees:

2.2.3.1.              Of Full Compliance with the Contract

2.2.3.2.              For the advance payment

2.2.3.3.              Technical Guarantees

2.2.4. The following appendices:

APPENDIX A: Payment Terms

APPENDIX B: Import Procedure

APPENDIX C: Scope of Responsibility

APPENDIX D: Project Execution Terms

THIRD.- INTERPRETATION AND DEFINITION OF TERMS:

The terms of the Contract should be interpreted in a literal sense, in the context thereof, and whose purpose clearly discloses the intention of the contracting parties. In any case its interpretation follows the following rules: 1) When the terms are defined in the laws of Ecuador, it will meet the definition. 2) If they are not defined in the laws of Ecuador it will be in accordance to what is provided in the contract, in accordance with the definitions outlined below; and, in its literal and obvious sense, in accordance with the contractual purpose and intention of the contracting parties. 3) In case of its lack or inadequacy the rules contained in Title XIII of Book IV of the Codification of the Civil Code, published in the Supplement to Official Gazette No. 46, dated June 24, 2005, Regarding the Interpretation of Contracts, will be applied.

 

 

In this Contract, the following terms have the meanings detailed below:

	
      ·

	“System”.-    	The IT solution required for the nationwide expansion of the Pilot Plan implemented in the city of Guayaquil, including the hardware, software, and other required services, as it is described in the technical specifications including the provision of **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** electronic identification cards; system which must contain among other features the capacity to verify the real identity of the identification card holders by biometric information.

 

	
      ·

	
“Electronic 

Identification 

Card”.-

	
Electronic person identification document, which includes, among other features, the capability to ensure the true identity of the cardholders by biometric information.

 

	
      ·

	
“Material breach”.-

	
a breach of commitment, obligation, warranty or representation of any provision of the following clauses or appendices in this Contract: Terms of Payment, Guarantees, and Confidentiality.

	
      ·

	“Main System”.- 	
The components that enable people to register and obtain the new electronic identification card and inscriptions of various kinds, based on OTI ́s Magna system.

 

	
      ·

	“Final Delivery”.-	
The final delivery of all the goods and services as detailed in the List of Goods and Services provided for in the proposal submitted by OTI.

 

If there are inconsistencies between the Contract and the documents thereof, the Contract provisions will prevail. If there are contradictions between the contractual provisions, the contracting Entity will determine the prevalence of a text, in accordance with the contractual purpose. If the CONTRACTOR ́S bid contained in its offer differs from the content of the bidding specifications or if it specifies its scope, the content of said offer will apply for the contractual implementation.

 

  

4

  

 

FOURTH.- OBJECT OF THE CONTRACT:

THE CONTRACTOR is committed and obligated toward THE CONTRACTING PARTY to the SUPPLY, INTEGRATION AND MAINTENANCE SERVICES, OF THE NATIONWIDE IT SOLUTION OF THE TECHNOLOGICAL MODERNIZATION PROJECT OF THE DIRECCION GENERAL DE REGISTRO CIVIL, IDENTIFICACIÒN Y CEDULACION, according to 1. The technical terms and specifications that are stated in the bidding specifications, particularly in section V (General and technical specifications); 2. the technical and financial offer submitted by the CONTRACTOR including: 2.1.  the detailed description of the technical features and specifications of the goods and services offered; 2.2. form No. 6 in which the List of goods and services and prices is stated; 2.3. the Project Implementation Plan (schedule), and 3) in the stipulations of this contract .the technical terms and specifications that are stated in the bid specifications, in the offer submitted by THE CONTRACTOR, and in the stipulations of this contract.

The technological project to be implemented entails developing the required IT system to replace the current identity card with a new national identification document. The project includes the implementation of the methodology to develop the required change and includes the development of an IT system or software, using the technology implemented in the Guayaquil Pilot Plan; the provision and installation of the equipment, the peripherals and the computer servers required on a national scale; and, the necessary training process; all of which must be subject to the detailed requirements, terms and conditions included in the Technical Specifications. Consequently, THE CONTRACTOR is obligated to deliver the required IT system on a national scale in operating conditions, which includes everything necessary for enrolment and personal data capture and to print and manage the electronic identification cards, as well as to provide the technical support to carry out the project, the necessary design, development, and integration so that the IT solution may be implemented nationwide, according to the agreed upon technical conditions.

 

The goods and services to be provided as the object of the present contract, will only use the existing system implemented in the Guayaquil Pilot Plan.

The importation of the **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** electronic identification cards and/or the equipment or systems required pursuing this contract will be carried out according to the procedure stated in APPENDIX B.

For the implementation of the project, object of this contract the content of the Bidding specifications will be observed, the offer submitted by the CONTRACTOR in which the project implementation mechanisms are specified, as well as the terms pointed out in APPENDIX D.

FIFTH.- PRICE AND PAYMENT METHOD:

THE CONTRACTING PARTY will pay THE CONTRACTOR for the execution of this contract, the total amount of TWENTY SEVEN MILLION NINE HUNDRED AND NINETY THOUSAND SEVEN HUNDRED AND SEVENTY SEVEN DOLLARS OF THE UNITED STATES OF AMERICA (USD. 27,990,777,00), amount which does not include the Value Added Tax VAT.

Payments will be made with the considerations provided in article 101 of the Organic Law of the Public Contracting System and charged to Budgetary Item No.. 84.01.07.000.1, as is stated in Budgetary Certification No. 2009-188-DF dated November 25, 2009, submitted by Dr. Nancy Bonilla, Financial Director of the Dirección General de Registro Civil, Identificación y Cedulación.

The payment method is stated in APPENDIX A of this contract.

It is expressly provided herein that the CONTRACTOR assumes as its responsibility the payment of all tax obligations generated from the signing and execution of this Contract; and that are provided by Ecuadorian law as of the signing of this Contract. Any additional tax charges that eventually will be generated after the signing of this Contract, which are different from the ones presently existent under Ecuadorian law, will be assumed directly by the CONTRACTING PARTY as well as the payment of eventual taxes related to transfers or imports that the contracting entity acquires. The withholdings generated by the signing of this Contract or that come from the payment of invoices related thereto will be deducted and made by the Financial Administrative Directorate of "THE CONTRACTING PARTY”, in accordance with current tax legislation.

 

  

5

  

 

During the execution of the contract, the General Directorate of the Registro Civil, Identificación y Cedulación must pay the taxes in Ecuador related to the nationalization of the corresponding BOM (Bill of Materials) Components (pointed out in form No. 6 of the bid submitted by the Contractor in which the List of goods, services and prices of the Project delivered by the Contractor is stated.

 

The payments that the Dirección General de Registro Civil, Identificación y Cedulación makes to bank accounts overseas, by virtue of the signing of the contract, will not be subject to taxes related to the outflow of capital, given its public nature.

The correct financial implementation of payments, as to the accuracy, legality and ownership thereof, shall be the responsibility of the Financial Directorate of “THE CONTRACTING PARTY”.

“THE CONTRACTING PARTY” must pay all taxes in Ecuador related to the nationalization of Project Components delivered by “THE CONTRACTOR”; including the transportation expenses to the destination.

	
SIXTH.- TERM:

	
The term of this Contract is 30 calendar months, counting from the Commencement Date, which shall be the date on which the Advance payment is actually received from "THE CONTRACTING PARTY”; meaning that the funds are credited to the bank account designated by “THE CONTRACTOR”

SEVENTH.- GUARANTEES:

	
  

	
7.1

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

This/ese guarantee/s, in accordance with article 74 of the Organic Law of the National System of Public Contracting, will be issued for five percent (5%) of the contract amount.

	
  

	
7.2

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

	
  

	
7.3

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

	
  

	
7.4

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

  

6

  

 

In the same manner, in order to guarantee the quality and proper functioning of the electronic identification system to be delivered under the fulfillment of this contract, THE CONTRACTOR, upon signing the contract, and as an integral part thereof, delivers a technical guarantee that will remain valid under the conditions provided in the document issued to that effect by THE CONTRACTOR as part of the offer.

These guarantees are independent and will survive after the principal obligation is fulfilled. These guarantees will enter into force upon the delivery/receipt of the goods.

THE CONTRACTOR is required to maintain the due fulfillment guarantee/s of the contract pending receipt thereof, which extinguishes the agreed obligations; the Advance Payment guarantees, as well as the Balance Payment guarantees, until their payment and as to the unamortized portion of said amounts; and, the technical guarantee until the end of its term.

EIGHTH.- TERM EXTENSIONS:

The entire term or partial terms of this Contract will be extended automatically in the following cases:

	
  

	
a)

	
Due to force majeure alleged by THE CONTRACTOR and accepted as such by THE CONTRACTING PARTY;

	
  

	
b)

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

	
  

	
c)

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

In cases of extensions, the parties will develop a new schedule which, after being signed and accepted by them, will replace the original or precedent and will have the same contractual value as the replaced contract

NINTH.- FINES:

For each day of delay in implementing the contractual object described in clause four of this contract, for reasons directly attributable to THE CONTRACTOR, it shall be fined with one per thousand (0.001) of the unpaid contract price until then; and as long as THE CONTRACTING PARTY has fulfilled its contractual obligations, including payments. If the amount of the fines exceeds 5% of the total amount of the Contract, THE CONTRACTING PARTY may terminate it before the termination date and unilaterally. Fines may not be reviewed nor returned under any circumstance.

 

Notwithstanding the foregoing, no penalty for delay will apply to THE CONTRACTOR, in each of the following cases:

	
  

	
a)

	
Due to delay that does not exceed 14 days,.

	
  

	
b)

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

	
  

	
c)

	
If the delay will not result in a change in the Final Delivery Date of the Project.

 

  

7

  

 

TENTH.- OTHER OBLIGATIONS OF THE CONTRACTOR:

In addition to the obligations provided in this contract and its Appendices, THE CONTRACTOR is obliged to comply with any other obligation arising naturally and legally from the subject matter hereof and may be binding by being stated in any document thereof or in a statutory rule specifically applicable to it, which is accepted by THE CONTRACTOR.

ELEVENTH.- OBLIGATIONS OF THE CONTRACTING PARTY:

The obligations of THE CONTRACTING PARTY, apart from those provided in other clauses of the contract and its appendices, are the following:

	
  

	
a)

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

	
  

	
b)

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

	
  

	
c)

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

TWELFTH.- CONTRACT ADMINISTRATOR:

The Contract Administrator will be the Technology Director of the Direccion General de Registro Civil, Identificacion y Cedulacion or the delegate.

THIRTEENTH.- INTELLECTUAL PROPERTY, SOURCE CODES, PERMITS, LICENSES, AND CONFIDENTIALITY:

The aspects related to intellectual property and the delivery of the Source Codes will be submitted to the terms provided in APPENDIX  D of this Contract.

 

THE CONTRACTING PARTY shall provide THE CONTRACTOR with all permits, licenses, authorizations, consents and approvals (including, but not limited to) environmental licenses and permits for implementation) as may be required, and carry out all relevant formalities for the Execution of this Project, including and without restriction: a) To allow the timely implementation of the project; b) To acquire at any moment and without any restriction whatsoever the necessary permits for the transfer of the CONTRATCTOR ́S funds exempt of al tariffs or taxes; c) in order to additionally offer support so that the foreign national staff necessary for the implementation of the Project may have the necessary permanence permits.

 

The parties agree to respect and abide by the Confidentiality document, which is stated in subsection 5.5 of Section V of the Bidding Specifications of the Process

FOURTEENTH.- SEVERABILITY:

If any of the terms, clauses, provisions or part of this contract is declared unenforceable for any reason, the remaining terms, clauses, provisions and parts of it remain in full force, as though this contract were entered into without the location of the unenforceable provision that appears herein. In that event, the parties shall ensure that the contract be interpreted to give effect to the greatest extent possible and permitted by law, the meaning and intent of the unenforceable provision. If necessary, the parties will implement a provision that is legally valid and current and reflects to the greatest extent possible the intent of the parties, as included in the unenforceable provision.

FIFTEENTH.- DISPUTES:

 

15.01.- If divergences or controversies in the interpretation or implementation of this contract were to arise, when the parties should not arrive at a direct amicable agreement, they may use the alternative methods for the solution de controversies at the National Center for Arbitration and Mediation of the Chamber of Construction of Quito (CENAMACO).

 

  

8

  

 

In order for the arbitration to proceed, there must previously be a favorable pronouncement by the State General Attorney, according to article 190 de la Constitution of the Republic of Ecuador.

 

15.02.- In case the parties opt for voluntary jurisdiction, the parties agree to submit the controversies related to this contract, its implementation, settlement and interpretation to arbitration and mediation and the following is agreed:

 

15.02.01.- Mediation.- All controversies or differences related to this contract, its implementation, settlement and interpretation, will be resolved with the assistance of a mediator from the National Center for Arbitration and Mediation of the Chamber of Construction of Quito CENAMACO. In the event  that the conflict were not resolved through this mechanism for the solution of controversies, the parties submit to  Arbitration according to the following rules:

 

15.02.02.- Arbitration.-

 

	
a)

	
The arbitration will be in Law.

	
b)

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

	
c)

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

	
d)

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

 

 

	
e)

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

	
f)

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

	
g)

	
Ecuadorian legislation is applicable to this Contract and its interpretation, execution and settlement.

	
h)

	
The venue for the arbitration is the city of Quito.

	
i)

	
The language for the arbitration will be Spanish.

	
j)

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

 

15.03.- If there should not be an agreement regarding the provoked divergence or divergences, and the parties decide to submit them to the procedure established in the Law of the Jurisdiction for Administrative Litigation,  the Provincial Tribunal for Administrative Litigation that exercises jurisdiction in the domicile of the Dirección General de Registro Civil, Identificación y Cedulación will be competent to address the controversy

 

15.04.- Ecuadorian legislation is applicable to this Contract. Consequently, the CONTRACTOR waives the right to use diplomatic recourse for all claims related to this Contract. If the CONTRACTOR should not comply with this commitment, the CONTRACTING PARTY may unilaterally terminate the contract and execute the guarantees.

 

  

9

  

 

If differences or disputes may arise in the interpretation or performance of this contract, the parties shall seek to reach an agreement that resolves the problem. In the absence of an agreement, the parties shall submit the matter at issue to mediation in the Mediation Center of the Attorney General, in accordance with the provisions of Law Arbitration and Mediation of Ecuador. If there is no agreement in mediation, the dispute as prescribed in article 105 of the Organic Law of National Public Procurement System will be subject to the decision of the District Court of Administrative Litigation No. 1 of Quito, in observance of Ecuadorian law and the terms of this contract; for which purpose the parties waive jurisdiction and domicile. For all purposes of this contract, the parties agree in designating their domicile in Quito.

SIXTEENTH.- TERMINATION OF THE CONTRACT:

As provided in article 92 of the Organic Law of the National Public Procurement System, this contract will end by:

	
16.1

	
Full compliance with contractual obligations;

	
16.2

	
Mutual agreement of the parties;

	
16.3

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

	
16.4

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

	
16.5

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

 

Ultimately the Contract ends with the fulfillment of contractual obligations or in advance for reasons attributable to the parties or by mutual agreement. The procedure for termination of the Contract, for the reasons outlined above, will be governed in accordance with the Organic Law of National Public Procurement System and its Application regulation.

a. Termination by mutual consent.- Pursuant to the grounds established in Article 93 of the Organic Law of the National Procurement System; the parties can terminate the contract before the agreed upon date, in the event of the situations provided in such legal provision occur.

b. Unilateral termination of the Contract.- In accordance with the provisions of Article 94 of the Organic Law of National Procurement System and following the procedure indicated in Article 95 therein, THE CONTRACTING PARTY may decide to terminate this Contract, in advance and unilaterally, in the following cases:

1. Due to breach by THE CONTRACTOR;

2. Due to bankruptcy of THE CONTRACTOR;

3. If the value of the fines exceeds the amount of the guarantee of due fulfillment of the contract;

4. Due to suspension of work at the discretion of THE CONTRACTOR, for more than sixty (60) days not due to force majeure or fortuitous events;

5. Due to contracts have been signed against the express prohibition of the Organic Law of the National System for Public Contracting;

6. In the other cases stipulated in this contract, according to their nature;

7. THE CONTRACTING PARTY may also decide to terminate the contract early and unilaterally when, faced with unexpected technical or financial circumstances or a fortuitous event or force majeure, duly verified, THE CONTRACTOR has not agreed to mutually terminate the contract. In this case, the guarantee of faithful performance of the contract will not be executed nor shall THE CONTRACTOR be recorded as non-compliant.

c. Termination for reasons attributable to the CONTRACTING PARTY.- The CONTRACTOR may demand termination of the contract for the following reasons attributable to the CONTRACTING PARTY:

1. Due to the breach of contractual obligations by more than sixty (60) days;

2. Due to the suspension of work for more than sixty (60) days, arranged by the entity without reasons of force majeure or fortuitous event;

3. Where due to unforeseen technical or financial circumstances or force majeure or fortuitous event, duly verified, THE CONTRACTING PARTY has not agreed to mutually terminate the contract.

In all cases of termination of this Contract, there will be receptions and settlements in accordance with the Organic Law of the National System of Public Contracting and its General Application Regulation.

  

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SEVENTEENTH.- ADDRESS, JURISDICTION, AND PROCEDURE:

For all purposes of this contract, the parties agree in designating their domicile in the city of Quito, THE CONTRACTOR waives any special privileges that it may have due to domicile.

Disputes should be handled in accordance with the provisions in clause Fifteen of this contract.

For the effect of notifications or rectifications, the parties designate the following addresses:

The Contracting Party: Av. Amazonas N37-61 y Naciones Unidas esquina, Quito-Ecuador.

The Contractor: Av. 12 de Octubre N24-562 y Cordero, Edif. World Trade Center, piso 15, Oficina 1501, Quito Ecuador.

EIGHTEENTH.- ACCEPTANCE AND SUBSCRIPTION:

Freely and voluntarily, after complying with all the requirements of the laws of matter, the parties expressly state their acceptance of everything agreed in this contract and its appendices, and submit to its stipulations, for which this contract is signed in three copies of equal value and content in the city of San Francisco de Quito on the 9 day of the month of December, 2009.

 

	
DIRECCIÓN GENERAL DE

REGISTRO CIVIL, IDENTIFICACIÓN

Y CEDULACIÓN

	ON TRACK INNOVATIONS LTD. OTI
	
 

/s/ Paulo Rodríguez Molina

Ing. Paulo Rodríguez Molina

DIRECTOR GENERAL

 

CONTRACTOR

	
 

/s/ Diego Luis Rueda  Mosquera

Ing. Diego Luis Rueda  Mosquera

LEGAL PROXY

 

CONTRACTING PARTY

 

  

11

  

 

	
Appendix A: Payment Terms

 

The following are the payment terms for the delivery of the **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** Electronic ID Cards, as well as the Informatics System to be implemented on a national level, that complements the contents of section 2 of the fifth clause of the Contract signed between the parties:

 

	
1.

	
Payments Terms for the Electronic ID Cards:

 

	
Cards Supplies Value for

	
*THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**

	
Base cards

	
Total Price without VAT:

	
$3,720,000

	  	
Action

	
Party

	
% From Total Cards Value

	
Cards Shipment QTY

	
Value without VAT

	
Expected Date

	
Milestone

	  	
*THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**

 

* For the purposes of this Appendix, “Payments received” means payments credited to the Contractor’s bank account.

 

All indicated values don’t include VAT.

 

The CONTRACTING Party shall deliver to the CONTRACTOR the proof of withholding of VAT in the corresponding percentages.

 

  

A - 1

  

 

	
2.

	
Payments Terms for the System Deliveries:

 

Milestones and Payment Milestones (PMs & AMs)

 

PM = Payment Milestone

 

AM = Acknowledged Milestone

 

	
Milestone

	
Activity/Deliverables

	
Party

	
Expected Date

	
Comments

	
Value without VAT

	
*THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**

 

* For the purposes of this Appendix, “Payments received” means payments credited to the Contractor’s bank account.

 

All indicated values don’t include VAT.

 

The CONTRACTING Party shall deliver to the CONTRACTOR the proof of withholding of VAT in the corresponding percentages.

 

  

A - 2

  

 

Comments

 

	
  

	
1.

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

 

	
  

	
2.

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

 

	
  

	
3.

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

 

	
  

	
4.

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

 

	 	
5.

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

 

	 	
6.

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

 

	 	
7.

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

 

	 	
8.

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

 

	 	
9.

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

 

  

A - 3

  

 

	
3.

	
Additional Payment Provisions – Form of Payment

All payments to be made by Contracting Party to the Contractor shall be made in dollars of the United States of America, directly to the bank account of the Contractor, as follows:

	
CORRESPONDENT BANK:

	
[Bank Leumi Le Israel BM]

	
Account name:

	
[On Track Innovations Ltd. (OTI)]

	
Branch No:

	
**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**

	
Account Number:

	
**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**

	
Swift Code:

	
**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**

	
Iban:

	
**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**

Contracting Party’s payments to foreign accounts of the Contractor will not be subject to payment of taxes for capital outflow, given the public character of the Contracting Party.

 

	

_______________________

/s/ Paulo Rodriguez Molina

Eng. Paulo Rodriguez Molina

General Director

Direccion General del Registro Civil, 

Identificacion y Cedulacion del Ecuador

Contracting Party

	
_______________________

/s/ Diego Rueda Mosquera

Eng. Diego Rueda Mosquera

Attorney-in Fact

ON Track Innovations Ltd. OTI

Contractor

 

 

  

A - 4

  

 

APPENDIX B

 

IMPORT PROCEDURE

 

The procedure for nationalizing the shipments, which will be under the exclusive responsibility  of the Dirección General de Registro Civil, Identificación y Cedulación, will start with the delivery of the loading invoice duly legalized by ON TRACK INNOVATIONS LTD. (OTI), detailing the items, their quantities and unit prices for those items to be received in Ecuador in which this product information can be included. This invoice must be available to begin the procedures a minimum of 10 days before the loading date, subsequently OTI will provide the air waybill AWB once the cargo arrives in Ecuador.

 

The Directorate General of the Registro Civil, Identificación y Cedulación, shall carry out the procedure to obtain the authorization from the National Institute for Public Contracting (INCOP) and the tax waiver from the Ecuadorian Customs Corporation, using this invoice, so that once the shipments arrive they may be nationalized immediately.

 

The amounts required to pay the taxes related to the Childhood Development Fund (FODINFA), Customs fees, such as those related to the Corporation for the Promotion of Exports and Investments (CORPEI) or customs fines, dispatch services, warehousing and transportation, among others, will be provided by the Directorate General of the Registro Civil, Identificación y Cedulación in a timely manner for the nationalization process.  In case these amounts are paid by OTI, they must be reimbursed in the least time possible, with the delivery of the respective expense invoice.

 

In any circumstance, once the air waybill AWB is provided by OTI, a maximum period of time of 15 days will be considered, after the date of arrival of the shipment in the country including its arrival at the facilities of the Registro Civil, and reception at the warehouse by the inventory delegate of the Directorate General of the Registro Civil, Identificación y Cedulación to nationalize it. In case the time for nationalization should be greater, the items will be considered received according to the detail of the invoice that accompanies the shipment, 15 days after the shipment has arrived, according to the air waybill AWB.

 

	
DIRECCORATE GENERAL OF THE REGISTRO CIVIL

	
ON TRACK INNOVATIONS

	
IDENTIFICACIÓN Y CEDULACIÓN

	
LTD OTI

	  	  
	
/s/ Paulo Rodríguez Molina

	
/s/ Diego Luis Rueda Mosquera

	
Ing. Paulo Rodríguez Molina

	
Ing. Diego Luis Rueda Mosquera

	
DIRECTOR GENERAL

	
SPECIAL PROXY

	
CONTRACTING PARTY

	
CONTRACTOR

 

  

B - 1

  

 

APPENDIX C

 

EXTENT OF RESPONSIBILITY

 

This Appendix supplements the contract signed between the Direccion General de Registro Civil, Identificacion y Cedulacion of Ecuador (the “CONTRACTING PARTY”) and On Track Innovations Ltd.OTI (the “CONTRACTOR”).

 

	
  

	
1.

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

 

	
  

	
2.

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

 

	
  

	
3.

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

 

	
  

	
4.

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

 

	
  

	
5.

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

 

	
  

	
6.

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

	
/s/ Paulo Rodríguez Molina

	
/s/ Diego Luis Rueda Mosquera

	
Ing. Paulo Rodríguez Molina

	
Mr. Diego Rueda Mosquera

	 	 
	
DIRECTOR GENERAL

	
ATTORNEY-IN-FACT

	
DE REGISTRO CIVIL, IDENTIFICACION

	
ON TRACK INNOVATIONS LTD.

	
Y CEDULACION DEL ECUADOR

	
OTI

	
CONTRACTING PARTY

	
CONTRACTOR

  

C - 1

  

 

APPENDIX D

 

POJECT EXECUTION TERMS

 

This Appendix supplements the contract signed between the Dirección General de Registro Civil, Identificación y Cedulación del Ecuador (the “CONTRACTING PARTY”) and On Track Innovations Ltd. OTI (the “CONTRACTOR”).

 

	
  

	
1.

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

 

	
  

	
2.

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

 

	
  

	
3.

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

 

	
  

	
4.

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

 

	
  

	
5.

	
The parties agree and acknowledge that any and all patents, intellectual property, brands and other intellectual property rights used and included in the contract or in connection with the system or any part thereof, including documentation, is and will remain as property of the CONTRACTOR and will never be construed as being property of the CONTRACTING PARTY. The CONTRACTING PARTY cannot, during or at any time after the expiry or termination of the Contract or in any way question or contest the property or any other right of the CONTRACTOR.

 

	
  

	
6.

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

 

  

D - 1

  

 

	
  

	
7.

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

 

	
  

	
8.

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

 

	 	
/s/ Paulo Rodríguez Molina

	
/s/ Diego Rueda Mosquera

	 	
Ing. Paulo Rodríguez Molina

	
Ing. Diego Rueda Mosquera

	 	
DIRECTOR GENERAL

	
ATTORNEY BY PROXY

	 	
OF REGISTRO CIVIL, IDENTIFICACION

	
ON TRACK INNOVATIONS LTD.

	 	
Y CEDULACION OF ECUADOR

	  
	 	
THE CONTRACTING PARTY

	
THE CONTRACTOR

  

D - 2

  

 

Document No. 239-2009

(Article 2.1.1 of the Main Contract)

DOCUMENT SUMMARY

In accordance to Article 2.1.1 of the Contract, it is annexed to the Contract a copy of the Appointment Certificate by Resolution 239-2009 of the General Director of the General Directorate for Civil Registry, Identification and ID Card Issuing of the Republic of Ecuador (“Direccion General del Registro Civil, Identification y Cedulacion”).

Resolution No. 239-2009, dated August 5th, 2009, given by the National Secretary of Planning and Development of the Republic of Ecuador, Mr. Rene Ramirez Gallegos, records in its preamble that under Executive Decree No. 2283, published in the Public Official Registry on December 7th, 2004, the National Council for Modernization of the State (Consejo Nacional de Modernizacion del Estado – “CONAM”) was assign by the State to perform a reform and modernization of the General Directorate of Civil Registry, Identification and ID Card Issuing of Ecuador and that the CONAM, shall appoint the General Director of the General Directorate of Civil Registry, Identification and ID Card Issuing.

By Article 1 of the aforesaid Resolution 239-2009, Engineer HECTOR PAULO RODRIGUEZ MOLINA, is appointed as General Director of the General Directorate for Civil Registry, Identification and ID Card Issuing of Ecuador and by Article 2 of the said Resolution, the said appointment of the foregoing General Director is valid and effective from the date of the said Resolution (August 5th, 2009) and thereon.

 

(* Note – The foregoing Resolution demonstrate the executive  powers of the General Director, Mr. Molina, to sign the Contract  on behalf of the General Directorate of Civil Registry, Identification and ID Card Issuing of Ecuador)

  

  

  

Copy of the ID Cards of the Persons signing the Contract on behalf of the Parties

(Article 2.1.1 of the Main Contract)

DOCUMENTS SUMMARY

 

In accordance to Article 2.1.1 of the Contract, are annexed to the Contract a Copy of the National Identity Card and National Voting Card of the following Representatives of the Parties who signed the Contract on their behalf:

	
  

	
a)

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

	
  

	
b)

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

 

 

 

 

 

Notarized Copy of General Power of Attorney provided by On Track Innovations Ltd to its General Legal Representative in Ecuador, Attorney of Law Dr. Angel Francisco Santillan Almeida and Notarized Partial Assignment of Powers of Attorney assign by On Track Innovations Ltd to Mr. Diego Luis Alfonso Rueda Mosquera

 

(Article 2.1.1 of the Main Contract)

 

DOCUMENTS SUMMARY

 

In accordance to Article 2.1.1 of the Contract, to the Contract are annexed certified copies of the General Power of Attorney subscribed by OTI on April 21st, 2009 assigning to Attorney of Law, Dr. Angel Francisco Santillan Almeida, general powers to act as the General Legal representative of OTI in Ecuador and certified copy of a Power of Attorney and related documents subscribed on December 9th 2009 by the foregoing Dr. Santillan Almeida, assigning at OTI’s request part of its powers to Mr. Diego Luis Alfonso Rueda Mosquera, to sign the Contract with the Civil Registry on behalf of OTI.

 

The foregoing Powers of Attorney and related documents were notarized by Notary Dr. Oswaldo Mejia Espinosa of Quito, Ecuador, on December 9th 2009.

 

  

  

  

 

Copy of Certificate of Registration of On Track Innovations Ltd as a Government Supplier at the 

National Providers Registry (“Registro Unico de Proveedores (”RUP”)

 

(Article 2.1.2 of the Contract)

DOCUMENT SUMMARY

 

In accordance to Article 2.1.2 of the Contract, to the Contract is annexed a copy of the Certificate of Registration of On Track Innovations Ltd., dated July 29th, 2009,  at the National Providers Registry (”RUP”).

 

  

  

  

 

(Article 2.1.3 of the Contract)

 

RESOLUTION No. DGRCIC-2009- 0066

 

ENGINEER PAULO RODRÍGUEZ MOLINA

 

GENERAL DIRECTOR OF CIVIL REGISTRY, IDENTIFICATION AND CARD ISSUANCE

 

WHERE AS:

 

By Executive Decree No.1064 of May 9th 2008, the Economist Rafael Correa Delgado, Constitutional President of the Republic of Ecuador declared a state of emergency to the General Directorate of Civil Registry, Identification and Card Issuance in order to solve its situation of institutional crisis and properly ensure the right to identity of the inhabitants of Ecuador and prevent general commotion;

 

By  means of Resolution No. 001, dated October 8th 2008, published in the website  www.compraspublicas.gov.ec on October 9th 2008, Engineer Jose Fernando Navia Gallardo, then the General Director of Civil Registry, Identification and Cards Issuance, in order to solve the critical situation of the Institution, properly ensure the right to identity of the inhabitants of Ecuador and prevent general commotion, through immediate procurement of works, goods and services including consultancy, declared the state of emergency of the General Directorate of Civil Registry, Identification and Card Issuance;

 

Article 227 of the Constitution of the Republic, published in the Official Gazette No. 449 of October 20th 2008, established that public administration is a service to the community that is governed by the principles of effectiveness, efficiency, quality, hierarchy , deconcentration, decentralization, coordination, participation, planning, transparency and evaluation.  The General Directorate of Civil Registration, Identification and Card Issuance, as part of public administration, should also embrace these principles;

 

The General Directorate of Civil Registry, Identification and Card Issuance, is implementing a Comprehensive Strategic Plan, which is defined in actions considered necessary and indispensable to carry out the restructuring and modernization of the institution. The plan seeks to improve the level of care and implement state-of-the-art technology in regard to public identification, seeking to strengthen the following areas: Organizational, Technological and Administrative;

 

[There is a seal that reads: Notary 10, Quito Ecuador, Atty. Oswaldo Mejía Espinosa; next to it there is another seal that reads: IT IS A TRUE COPY OF THE ORIGINAL WHICH IS KEPT IN THIS FILE, OCTOBER 30, 2009; and there is another seal that reads: GENERAL DIRECTORATE OFCIVIL REGISTRY, IDENTIFICATION AND CARD ISSUANCE- QUITO-]

 

Within the fulfillment of the plan prepared by the General Directorate of Civil Registry, Identification and Card Issuance, referred to in the preceding paragraph, Engineer Jose Fernando Navia Gallardo, then the General Director of Civil Registry, Identification and Card Issuance, determined that in order to achieve its objectives it would be necessary to carry out a process for the implementation a technological solution that allows to comprehensively and fully implement a new model of user service, a process that began with the implementation of Phase 1 Pilot in the city of Guayaquil, and that should continue with full implementation in the rest of the said city, as well as in the General Directorate of Civil Registry of Identification and Card Issuance of the city of Quito and at a national level;

 

  

  

  

 

For purposes of conducting Phase 1 Pilot plan Guayaquil, the General Directorate of Civil Registry, Identification and Card Issuance, carried out a pre-contractual processwhich involved several bidders, and which was won by the company On Track Innovations Ltd. (OTI) because its technical and financial proposal was considered to be the most suitable for the national and institutional interests, for which reason, a contract was signed with the aforementioned company by means of which they undertake to supply and provide integration and maintenance services for the software solution for the Technological Modernization Project of the Civil Registry, that is, to implement Phase 1 - Pilot-Guayaquil of the Comprehensive Strategic Plan of the General Directorate of Civil Registration, Identification and Card Issuance;

 

Phase 1 - Pilot-Guayaquil in charge of the company On Track Innovations Ltd. (OTI) was implemented satisfactorily, allowing the accomplishment of the objectives of the Implementation Plan and, it provided the information necessary to continue the execution of the implementation project at a national level. However, as it was a Pilot Plan it involved the acquisition of only two hundred thousand (200,000) identity cards, without being able to meet the total demand of the inhabitants of that city, thus requiring the purchase of a larger number of identity cards so the enrollment process did not suffer any suspensions or delays;

 

due to the situation outlined in the previous number the insecurity in the country is growing , increasing in an alarming and unpredictable manner in recent months, and which even led Economist Rafael Correa Delgado, Constitutional President of the Republic, declared a state of emergency in the cities of Quito and Guayaquil.  The growth of crime, in many cases, is due to the fact that it is relatively easy to obtain false identity cards or dual identities by those who commit crimes, consequences that therefore are proven and objective and publicly available information, which hampers or prevents the decision-making or imposition of sanctions by the authorities. Therefore, the acquisition of the additional number of Identity Cards required is an immediate necessity, they must be equipped with a system to ensure its safety, in order to implement the rules of law that permit, if applicable, among other things, the imposition of appropriate sanctions on those responsible for acts contrary to the law, having actual knowledge of their identity, and thus overcoming the situation of serious internal unrest in the country, due to the facts stated.

 

The Identity Cards to be acquired must respond and adapt to the technology currently available to the Civil Registry, and therefore should include a system that through the identification of fingerprints can identify, without error or risk of any type, the holder of the corresponding identity card. The emergency situation described, is compliant, therefore, with the requirements of Article 6 number 31 of the Organic Law of the National Procurement System;

 

In addition to what was expressed in the preceding number it is required to hire the physical infrastructure necessary to function in the new user care centers of the Institution, aimed at providing a modern and safe service;

 

Considering Article 21 of Executive Decree No. 8 of August 13th, 2009, in which the Ministry of Telecommunications and Society of Information is created, the General Directorate of Civil Registry, Identification and Card Issuance is in charge of the Ministry of Telecommunications and Society of Information, which shall oversee the immediate reform and modernization of such Entity;

 

  

  

  

 

Are, therefore, met the requirements set forth in Article 57 of the Organic Law of National Public Procurement System to solve the Declaration of Emergency;

 

In exercise of the powers provided for in Article 57 of the Organic Law on National Public Procurement System,

 

RESOLVES

 

Art.1.- To declare a state of emergency to the General Directorate of Civil Registry, Identification and Card Issuance in order to solve the situation of institutional crisis and properly ensure the right to identity of the inhabitants of Ecuador and prevent general commotion caused by the rise of insecurity in the country, which aspects to be considered are, inter alia, the abuse and fraudulent use of identity documents.

 

Art.2 .- As a result of the emergency declaration resolved, the works, goods or services that may be required to overcome the emergency situation will be contracted,  including consultancy.

 

Art.3 .- Once the emergency situation is overcome, a report detailing the contracts made and the budget spent shall be published in the website www.compraspublicas.gov.ec, indicating the results.

 

This Resolution of declaration of emergency shall be published in the website www.compraspublicas.gov.ec

 

Issued and signed in Quito on OCT. 29th   2009

 

[Signature]

Engineer Paulo Rodríguez Molina

GENERAL DIRECTOR OF CIVIL REGISTRY,

IDENTIFICATION AND CARD ISSUANCE

  

  

  

 

(Article 2.1.4 of the Contract)

 

RESOLUTION No. DGRCIC-2009-000093

 

THE GENERAL DIRECTOR OF CIVIL REGISTRY, IDENTIFICATION AND CARD ISSUANCE

 

WHERE AS:

 

By means of Resolution No. DGRCIC-2009-0066 of October 29th, 2009 and because the requirements provided by number 31, article  6 of the Organic Law of the National Procurement System were met, the institutional emergency of the General Directorate of Civil Registration, Identification and Card Issuance was declared, Resolution which was sent to the National Public Procurement Institute with official notice  No.2009-623-30-DIRG dated October 30th 2009 received on November 4th, 2009, for its publication in the portal www.compraspublicas.gov.ec, thus fulfilling the provisions of Article 57 of the Law ibid.

 

Art. 2 of the aforementioned emergency declaration, allows the contracting of the works, goods or services that may be required to overcome the emergency situation, including consultancy.

 

As stated in the fifth legal reason of Resolution No. DGRCIC-2009-0066 dated October 29th 2009, the institutional emergency declared, is directly related to the national commotion in the country by the uncontrolled growth in crime, therefore  the complete implementation of the uniform technology solution that allows a comprehensive implementation of the new safe and secure model of enrollment in the system and database becomes necessary.  This necessity was highlighted by the Director of Technology Management of the Institution in the memoranda No. 309-GT-PC-FC-2009 dated October 26th 2009 and No. 393- GT-PC-FC-2009 dated November 13th 2009.

 

By means of Memorandum No.2009-999-DAJ dated November 20th 2009 the Director of Legal Affairs informed General Directorate of the Institution that in the last quarter of 2009 more than fifty criminal offenses driven by identity theft, bigamy, forgery, fraudulent use of forged documents, embezzlement, and bribery crimes against the institution were initiated, which has been an important factor in the Country’s deep state of internal disorder as a result of the facts mentioned, therefore the aforementioned Director asked for urgent safety measures to curb common crime being perpetrated against the institution, which present levels increase insecurity indicated by the Constitutional President of the Republic, who under the provisions of Article 164 of the Constitution of the Republic, declared a state of emergency in the cities of Quito, Guayaquil and Manta.  Such rise in delinquency was caused, among other reasons, by the fact that for those who commit crimes it is relatively easy to obtain false identity cards or dual identities.

 

  

  

  

 

By means of Memorandum No.  158°-GP-CC-2009, dated November 23rd 2009, the Planning Management Area submitted to the General Directorate of the Institution a report in which the institutional weaknesses in the management of the following Areas is evident:  Technology, Human Resources, Civil Infrastructure, Strengthening of Institutional Relations,therefore it is recommended that these areas be urgently strengthened to meet the main purpose of the General Directorate of Civil Registration, Identification and Card Issuance which is safekeeping identity, for this reason it is stated that the Modernization Project is framed in the Objectives of the Good Living National Plan 2009-2013 and in the Institutional Objectives and it should be granted the A category in implementation priority; besides the project is included in the Institutional Multi-Year Plan 2009-2013 and in the Annual Operating Plan 2010, submitted to SENPLADES for the corresponding monitoring and assessment.

 

In order to comply with the implementation of the modernization project planning stated in the preceding paragraph, by means of Memorandum No. 309-GT-PC-FC-2009 dated October 26th 2009 and No. 393-GT-PC-FC-2009 dated November 13th 2009, the Director of Technology Management requested **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** electronic ID cards required for six months of supply, demand that due to Budget availability was partially met with the acquisition of **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** units, as stated in the contract signed on November 11th 2009, pending the acquisition of **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** additional units.

 

By means of Memorandum No. 393- GT-PC-FC-2009 dated November 13th 2009, the Engineer  Patricia Cruz, Director of Technology Management of the Institution, informed that for a timely performance of the enrollment process in the new and inviolable database  of the Civil Registry, it is necessary to contract an urgent nationwide expansion of the technology solution that was implemented Pilot Plan Guayaquil.

 

From the technical study performed by Engineer  Hermann Palacios Wanke, within the recommendations made in his report dated November 12th 2009, inter alia, he states that in order to achieve a reliable and refined database by the end of 2011, making all voting citizens enroll in the system and initiating a complex process of reviewing and refining of fraud in the database, requires that the technology platform be contracted in a comprehensive, integrated and direct manner so the office with the new model can be expanded starting next January, he establishes that contracting this process through public process or by parts would result in the obtaining of an integrated system, such as that obtained in the pilot Guayaquil, by the end of 2010.

 

  

  

  

 

That external technical studies carried out by ASETA experts who were hired to issue a technical report on the technological solution implemented in the Pilot Plan Guayaquil, after the corresponding analysis and verification, concluded that the technology employed in the Pilot Plan is the best existing alternative at an international level for the institutional goals and objectives, therefore, it is considered beneficial if it were implemented at a national level.

 

On the basis of the requirement contained in memorandum No. GT-393-PC-FC-2009 dated November 13th 2009 and Budget availability, the implementation schedule to carry out the expansion and technological modernization of the Civil Registry is as follows:

 

	
No.

	
OBJECT

	
CONTRACTING PROCEDURE

	
ESTIMATED DATE

	
1

	
ACQUISITION OF **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**  ELECTRONIC IDENTIFICATION CARDS

	
DIRECT CONTRACTING

	
November 11th 2009

(contracting performed)

	
2

	
SUPPLY AND INTEGRATION AND MAINTENANCE SERVICES FOR THE COMPUTER SOLUTION AT A NATIONAL LEVEL OF THE TECHNOLOGY MODERNIZATION PROJECT OF THE GENERAL DIRECTORATE OF CIVIL REGISTRATION, IDENTIFICATION AND CARD ISSUANCE (**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**

electronic cards pending)

	
DIRECT CONTRACTING

	
December 9th 2009

	
3

	
ACQUISITION OF **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** ELECTRONIC IDENTIFICATION CARDS

	
COMPETITIVE PROCESS

	
 Starting the second quarter of 2010

 

The implementation schedule outlined in the above table is linked to institutional planning as it involves the execution of specific and differentiated stages where each are properly articulated, so that compliance with this schedule ensures the operational effectiveness of the project and, moreover, it is consistent with the institutional budgetary aspects and are articulated to the objectives of the Good Living National Plan 2009-2013 technical tool for Government Planning which  was developed by the SENPLADES.

 

  

  

  

 

In order to overcome the emergency mentioned in the preceding paragraphs, as  the technology solution to be implemented was successfully tested and as there is an infrastructure installed which involved the expenditure of funds from the National Treasury, it is suitable for the institution and the country to preserve the investment and urgently develop the tested platform.    Consequently, it is necessary that the SUPPLY AND INTEGRATION AND MAINTENANCE SERVICES FOR THE COMPUTER SOLUTION AT A NATIONAL LEVEL OF THE TECHNOLOGY MODERNIZATION PROJECT OF THE GENERAL DIRECTORATE OF CIVIL REGISTRATION, IDENTIFICATION AND CARD ISSUANCE, is provided by the same company that implemented the Pilot Plan in Guayaquil, so ensuring the technical and operational functionality of the Project.

 

It is the duty of the State of Ecuador to guarantee the exercise of the right to identity of persons, which is contained in the number 28 of article 66 of the Constitution of the Republic, in accordance with number 3 of Article 261 of the rule idem.

 

Attached to memorandum No. 393- GT-PC-FC-2009 dated November 13th 2009, the Engineer  Patricia Cruz, Director of Technology Management sent the General Directorate the draft of contracting specifications for the SUPPLY AND INTEGRATION AND MAINTENANCE SERVICES FOR THE COMPUTER SOLUTION AT A NATIONAL LEVEL OF THE TECHNOLOGY MODERNIZATION PROJECT OF THE GENERAL DIRECTORATE OF CIVIL REGISTRATION, IDENTIFICATION AND CARD ISSUANCE, which were prepared jointly with Atty. Carla San Martin, Director Legal Advisory and Atty.  Oswaldo Lopez, Director of Organizational Development Management.

 

Article 57 of the Organic Law of the National Procurement System provides that in cases of emergency the contracting entity may contract directly and under the responsibility of the highest authority, the works, goods or services, including consultancy, which are required to overcome the institutional emergency.

 

Besides the regulation indicated in the preceding paragraph, Article 95 of the General Regulations of the Organic Law of the National Public Procurement System makes provisions about the ability to directly contract the development and expansion of existing technologies.

 

It is necessary to meet the demands of institutional cooperation of state agencies related to crime fighting, which find a great weakness in the current identity card system because of the duplication of identity cards or identity theft.

 

For computer security measures implemented by the General Directorate of Civil Registry, Identification, and Card Issuance to contribute effectively in the adoption of solutions to counteract the excessive growth in crime, the following is needed:  1) the solution to be implemented has to be unique and integrated at a national level with the same technological base, 2) the project to be immediately and uniformly implemented across the country, and 3) building upon experience gained in the implementation of the Pilot Plan in Guayaquil, for which it is necessary to implement the modernization project which has seven basic technical components such as: Component I: user support model, Component II: main office infrastructure, Component III:  general technology, Component IV:  general consulting, BID consultancy support for the process , Component V:  help desk software and mobile brigades, Component VI:  various general. Human Resources Integrated System, Component VII:  general secretariat and archives, the operation effectiveness of these components will ensure the functionality and continuity of the system in all its phases.

 

  

  

  

 

The computer solution that is implemented as mentioned in the preceding paragraph means taking care at once and immediately of one of the main problems that have prevented the institutional development of the General Directorate of Civil Registry, Identification and Card Issuance which solution will positively affect the successful implementation of state policies set forth by the National Government.

 

The second section of Article 25 of the General Regulations to the Organic Law of the National Public Procurement System establishes that emergency contracts are not required to be included in the Annual Contracting Plan (PAC).

 

By means of memorandum No. 2009-188-DF dated November 25th 2009, the availability of financial resources to meet the financial obligations arising from the contract required under the budget No. 84.01.07.000.1. was certified.

 

In exercise of the powers under the Organic Law of the National Public Procurement System, the General Application Regulations and Article 17 of the Statute on the Legal-Administrative Regime of the Executive Power,

 

RESOLVES:

 

Art. 1.- The start of the Direct Contracting process for the “SUPPLY AND INTEGRATION AND MAINTENANCE SERVICES FOR THE COMPUTER SOLUTION AT A NATIONAL LEVEL OF THE TECHNOLOGY MODERNIZATION PROJECT OF THE GENERAL DIRECTORATE OF CIVIL REGISTRATION, IDENTIFICATION AND CARD ISSUANCE”.

 

Art.2 .- The approval of the specifications that have been developed by the Directorates of Technology Management, Legal Advisory and Organizational Development, and consequently, observance of the following schedule of the process:

 

	
Item

	
Day

	
Time

	
Date of invitation

	
Nov. 27th 2009

	  
	
Deadline for questions and clarifications

	
Nov. 30th 2009

	
4.00 pm

	
Deadline for the submission of answers

	
December 1st 2009

	
10.00 am

	
Deadline for the submission of Bid

	
Dec. 2nd 2009

	
09.00 am

	
Date of opening of Bids

	
Dec. 2nd 2009

	
10.00 am

	
Deadline for the validation of errors (Art. 23 RGLOSNCP)

	
December 4th 2009

	
4.00 pm

	
Deadline for the evaluation of Bid

	
Dec. 7th 2009

	
6.00 pm

	
Date of Contract Awarding (Estimate)

	
Dec. 8th 2009

	  

  

  

  

 

Art.3.- Inviting the company  On Track Innovations Ltd. (OTI) so that within the period provided in the schedule, they submit their technical and financial bids for the contract described in Article 1 of this resolution.

 

Art.4 .- Integrate a Technical Committee which shall perform the following functions:

 

	
1.

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

 

	
2.

	
Evaluating the bid of the invited company.

 

	
3.

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

 

The Technical Committee shall be integrated as provided in Article 18 of the General Regulations of the Organic Law of the National Public Procurement System:

 

	
  

	
1.

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

 

	
  

	
2.

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

 

	
  

	
3.

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

 

The Finance Director and the Director of  Legal Advisory, or their respective delegates, shall act with voice but no vote.  The Director of Organizational Development Management, or his delegate, shall act as Secretary of the Technical Committee.

 

For purposes of the performance of the Technical Committee what is provided in subsections sixth, seventh and eighth of Article 18 of the General Regulation of the Organic Law of the National Public Procurement System will be observed; regarding  meetings quorum, conflict of interests and contents of the reports.

 

If deemed necessary, the Technical Committee will integrate support subcommittees for the analysis of the bid presented, watching for that purpose what is provided in Article 19 of the General Regulations of the Organic Law of the National Public Procurement System.

 

  

  

  

 

Art.5 .- Observing the procedure referred to in Number 2 of Section III of the approved Bidding specifications, that is the following procedure will be followed:

 

	
1.

	
Invitation to the bidder.

 

	
2.

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

 

	
3.

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

 

	
4.

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

 

	
5.

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

 

	
6.

	
Resolution of Award or declaring the process null and void.

 

	
7.

	
Notification of award.

 

	
8.

	
Signing of the contract.

 

	
9.

	
Submission of guarantees demanded.

 

	
10.

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

 

This Resolution shall be valid from its signing.

 

Issued and signed in the city of Quito Metropolitan District.  NOVEMBER 27 2009

 

[Signature]

Engineer Paulo Rodríguez Molina

GENERAL DIRECTOR OF CIVIL REGISTRY,

IDENTIFICATION AND CARD ISSUANCE

 

  

  

  

 

[There is a seal that reads: Notary 10, Quito Ecuador, Atty. Oswaldo Mejía Espinosa; next to it there is another seal that reads: IT IS A TRUE COPY OF THE ORIGINAL WHICH IS KEPT IN THIS FILE, OCTOBER 30, 2009; and there is another seal that reads: GENERAL DIRECTORATE OF CIVIL REGISTRY, IDENTIFICATION AND CARD ISSUANCE- I certify it is a true copy-DEC 10TH 2009]

 

	
REPUBLIC OF ECUADOR

GENERAL DIRECTORATE OF CIVIL REGISTRY,

IDENTIFICATION AND CARD ISSUANCE

	
Civil Registry

Identification and Card Issuance

of Ecuador

 

MEMORANDUM No. 2009-188-DF

Quito, November 25th 2009

  

  

  

 

(Article 2.1.5 of the Contract)

 

	
TO:

	
Atty. Oswaldo López V.

	  	
DIRECTOR OF ORGANIZATIONAL DEVELOPMENT MANAGEMENT

	
FROM:

	
Ms. Nancy Bonilla Yanez

	 	
FINANCE DIRECTOR

	
SUBJECT:

	
BUDGET AVAILABILITY EXPANSION OF THE CIVIL REGISTRY TECHNOLOGY STRUCTURE

 

Regarding Memorandum No. 2009-1154-DGDO dated 11/25/2009, I inform you that after reviewing the current balances of the Expenditure budget of the General Directorate of Civil Registry, in the specific item, there is not enough balance available to take care of the request made in the referred memorandum.

 

However, we inform you that according to the Annual Investment Plan approved by the National Secretariat of Planning and Development (SENPLADES) for 2009, the amount of USD 54,958,077.71 appears for the Modernization and Sustainability of the National System of Civil Registry, Identification and Card Issuance. From the amount approved to this date, USD 30,000,000.00 have been allocated, by the Ministry of Finance and USD 24,958,077.71 are to be allocated. The latter includes the heading for the expansion of institutional technological structure USD 12,607,164 and for 2010 USD 15,392,836.00.

 

On the other hand, by means of Official notice No. 2009-676-DGRC dated November 19th of this year, aimed at the Economist Isela Sanchez de Viñán, Assistant General Secretary of the Ministry of Finance, the Civil Registry requested the allocation of USD 24,607,164.00, in order to continue the modernization process in a number of concepts within which the institutional technological expansion is included with the sum of USD 12,607,164.00 for the year 2009.

 

In this respect there is a commitment from the Assistant General Secretary of the Ministry of Finance, to address this request under the terms proposed.

 

In the present case, the expansion of the technological structure for 2009 would be funded under Item No. 84.01.07.000.1 of EQUIPMENT, SYSTEMS AND SOFTWARE PACKAGES, with USD 12.607,164.00 soon to be received.

 

Sincerely,

 

[Signature]

Ms. Nancy Bonilla Yanez

TECHNICAL DIRECTOR OF THE

FINANCIAL MANAGEMENT DEPARTMENT

 

  

  

  

 

(Article 2.1.6 of the Contract)

RESOLUTION N° DGRCIC-2009-00  000103

ENGINEER PAULO RODRÍGUEZ MOLINA

   GENERAL DIRECTOR OF CIVIL REGISTRY,

IDENTIFICATION AND CARD ISSUANCE

 

WHERE AS:

 

By means of Resolution No.  0066 dated October 29th 2009, under the provisions of Article 57 of the Organic Law of the National Public Procurement System, the state of emergency of the institution was declared, and, as the requirements outlined in the above cited legal regulation have been fulfilled, the procurement of works, goods and services required to overcome the declared emergency was decided.   Such emergency resolution was sent to INCOP for publication in the website www.compraspublicas.gov.ec.

 

By means of Memorandum No.  2009-188-DF dated November 25th 2009, Ms. Nancy Bonilla, Finance Director of the institution certified the existence of available resources for the contracting of the SUPPLY AND INTEGRATION AND MAINTENANCE SERVICES FOR THE COMPUTER SOLUTION AT A NATIONAL LEVEL OF THE TECHNOLOGY MODERNIZATION PROJECT OF THE GENERAL DIRECTORATE OF CIVIL REGISTRATION, IDENTIFICATION AND CARD ISSUANCE, charged to the budget item No.  84.01.07.000.1 of EQUIPMENT, SYSTEMS AND SOFTWARE PACKAGES.

 

By means of Resolution No.   000093 dated November 27th, 2009, under Emergency Resolution No.  0066 dated October 29th 2009, was established the beginning of the process of direct contracting for emergency No. DGRCIC-0008-2009 for the “SUPPLY AND INTEGRATION AND MAINTENANCE SERVICES FOR THE COMPUTER SOLUTION AT A NATIONAL LEVEL OF THE TECHNOLOGY MODERNIZATION PROJECT OF THE GENERAL DIRECTORATE OF CIVIL REGISTRATION, IDENTIFICATION AND CARD ISSUANCE”, for which purpose  it was decided to send the direct invitation to the company ON TRACK INNOVATIONS LTD .    OTI, as that company was the contractor for the Pilot Plan Guayaquil.

 

In Art. 4 of the resolution referred to in the foregoing paragraph, the establishment of a technical committee was decided, to evaluate the bid submitted by OTI, chaired by Mr.   Edwin Loayza, General Sub-director of the General Directorate of Civil Registry, Identification and Card Issuance and integrated by Engineer  Patricia Cruz, Director of Technology Management and Engineer  Marjorie Valdiviezo, as professional related to the object of the contract. Also this Technical Committee is integrated by Atty.  Carla San Martín, Director of Legal Advisory and Ms.  Nancy Bonilla, Finance Director, both with voice but no vote. The Secretary of the Technical Committee was the Atty.  Oswaldo Lopez, Director of Organizational Development Management.

 

On December 2nd, 2009, in accordance with the approved schedule, the company OTI submitted its technical –economic bid.

 

By means of Office notice No.  CT-001-DGRCIC-008-2009 dated December 7th 2009, the Technical Committee sent the General Directorate of the Institution, the reasoned report of the evaluation of the bid, in which, after the corresponding analysis they resolved to expressly recommend awarding the company ON TRACK INNOVATIONS LTD.  OTI the contract for the “SUPPLY AND INTEGRATION AND MAINTENANCE SERVICES FOR THE COMPUTER SOLUTION AT A NATIONAL LEVEL OF THE TECHNOLOGY MODERNIZATION PROJECT OF THE GENERAL DIRECTORATE OF CIVIL REGISTRATION, IDENTIFICATION AND CARD ISSUANCE”, for the amount of USD 27,990,777.00 (TWENTY SEVEN MILLION NINE HUNDRED NINETY THOUSAND SEVEN HUNDRED SEVENTY SEVEN AND 00/100 UNITED STATES DOLLARS, plus VAT, on the grounds that the bid meets the requirements contained in the specifications and is convenient for the interests of the Institution.

 

  

  

  

 

In exercise of the powers under the Organic Law of the National Public Procurement, the General Application Regulations and Article 17 of the Statute on the Legal-Administrative Regime of the Executive Power,

 

RESOLVES:

 

Art.1 .- Accepting in all of its parts the content of the evaluation report submitted by the Technical Committee, and therefore AWARDING the company ON TRACK INNOVATIONS LTD.  OTI the contract for the “SUPPLY AND INTEGRATION AND MAINTENANCE SERVICES FOR THE COMPUTER SOLUTION AT A NATIONAL LEVEL OF THE TECHNOLOGY MODERNIZATION PROJECT OF THE GENERAL DIRECTORATE OF CIVIL REGISTRATION, IDENTIFICATION AND CARD ISSUANCE”, in accordance with the following scope:

 

	
  

	
-

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

 

	
  

	
-

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

 

	
No. of CARDS

	
DEADLINE FOR DELIVERY

	
**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**

	
MAY 2010

	
**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**

	
JUNE 2010

 

  

  

  

 

	
  

	
-

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

 

	
OFFICE

	
DATE FOR INSTALLATION

	
COMMENTS

	
Quito (one Office)

	
JANUARY 2010

	
The installation will be performed by the Contractor with the support of the staff of the Contracting party.

	
Guayaquil  (two Offices): One North and another one South of the city

	
First quarter of the year 2010

	
The installation will be performed by the Contractor with the support of the staff of the Contracting party.

	
17 (seventeen) Offices at a national level

	
Until June 2010

	
The installation will be performed by the Contractor with the supervision of the Contracting party

	
16 (sixteen) Offices at a national level

	
Until September 2010

	
The installation will be performed by the Contractor with the supervision of the Contracting party

 

	
  

	
-

	
PAYMENT METHOD:

 

Advance Payment:  **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** of the total contract value which will be delivered once the contract is signed on delivery of the bank guarantee(s) for an equal value by “THE CONTRACTOR" and the guarantee of faithful performance of contract of **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** of contract value.

 

Payment of Balance: The remaining **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** will be paid in the manner established by mutual agreement with the Contractor, with the delivery of the corresponding guarantee(s).

 

Art.  2 .- The Secretary of the Technical Committee of this process shall NOTIFY about the award of this contract to the company ON TRACK INNOVATIONS LTD. OTI.

 

Art. 3.-   The Directorate of Legal Advisory shall prepare the corresponding contract,  which will be signed at the latest 48 hours from the issuance of this Resolution, after which the bidder will provide the guarantees provided in Article 1 above.

 

This Resolution shall be valid from its signing.

 

Issued and signed in the city of Quito Metropolitan District, DECEMBER 8th 2009

 

[Signature]

Engineer Paulo Rodríguez Molina

GENERAL DIRECTOR OF CIVIL REGISTRY,

IDENTIFICATION AND CARD ISSUANCE

 

Av. Amazonas and Naciones Unidas, corner of La Previsora Building,

Phone: 043802300 ext. 3700 / email: registrocivil.gov.ec

Quito - Ecuador

  

  

  

 

GENERAL AND TECHNICAL SPECIFICATIONS IN THE BIDDING DOCUMENTS

 

(Article 2.2.1 of the Contract)

 

DOCUMENTS SUMMARY

According to Article 2.2.1 of the Contract, among others, Section V of the Direct Contracting Process document, relating the “General and Technical Specifications” of the Project, should be an integral part of the Contract without being recorded. Following hereunder is a summary of the issues and specifications that are established in the aforesaid Section V of the pre-contractual Direct Contracting document, including its Sub-Sections 5.1, 5.2, 5.3, 5.4, 5.5 and 5.6.

 

SECTION V

 

GENERAL AND TECHNICAL SPECIFICATIONS

 

5.1. GENERAL PROJECT INFORMATION

 

1 Objectives of the project

 

1.1 Installation of 36 offices until September 2010:

 

1.2 AFIS

 

1.3 Personalization of cards

 

1.4 Business Process Reengineering (BPR)

 

2 Architecture of the Project

 

2.1 Enrollment Stations and Help Desks (fixed or mobile)

 

2.2 Data Processing Centers (DPC)

 

2.2.1 Backup

 

2.2.2 AFIS Engine

 

2.2.3 PKI / CA

 

2.2.4 Personal Data

 

2.2.5 IntDB

 

2.2.6 External Interface for Intermediate Data Base (IntDB)

 

2.2.7 Laboratory Testing

 

2.3 Personalization Offices

 

2.4 Delivery of eID Cards

 

2.5 Inventory

 

2.6 Communication:

 

3 Cycles of Design

 

3.1 Medium-term cycles

 

3.2 Short-term cycles

 

  

  

  

 

4 Passive Safety of eID Card

 

5 Standards

 

5.1 Capture stations standards

 

5.2 AFIS standards

 

5.2. EXPECTED ROLES AND RESPONSIBILITIES FOR EXECUTION OF THE PROJECT

 

1. CONTRACTOR’S Responsibilities

 

2. CONTRACTING PARTY Responsibilities

 

3. Principal Milestones of the Project

 

4. Activities

 

5. Training

 

5.3. PROJECT MANAGEMENT METHODOLOGY

 

5.4. MAINTENANCE OBLIGATIONS

 

1. DEFINITIONS

 

1.1. Support

 

1.2. Maintenance

 

1.3. Patches

 

1.4. Operational Transfer of knowledge for Level 2 maintenance

 

1.5. Level 1

 

1.6. Level 2

 

1.7. Level 3

 

1.8. Level 4

 

2. DURATION OF MAINTENANCE

 

3. SCOPE OF WARRANTY AND MAINTENANCE SERVICES

 

4. SUPPORT OF REPAIRS

 

5. RESPONSIBILITIES OF THE CONTRACTING PARTY

 

6. MAINTENANCE ACTIVITIES

 

7. ADDITIONAL CONSIDERATIONS

 

5.5. CONFIDENTIALITY OBLIGATIONS

 

5.6. FORMAT OF FORMS

 

1. Change Request Form (CRF):

 

2. Format of Change Request: Response Form

 

3. Format 0f Milestones Acceptance Report

 

  

  

  

 

Form No. 6 – List of Goods, Services and Prices and Project Schedule

 

(Article 2.2.2 of the Contract)

 

**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR 

CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**

 

  

  

  

 

PERFORMANCE GUARANTEE

 

 (Article 2.2.3.1 of the Contract)

	
Department:

	
GUARANTEE DEPT.

	
Ref:

	
(OURS and the foreign bank’s)

	
Date:

	
..................

	
Sirs

	  
	
....................

	  

Dear Sirs:

Under account, order and risk of BANK LEUMI LE ISRAEL B.M (foreign bank), We, Citibank N.A., Sucursal Ecuador, establish an unconditional, irrevocable bank guarantee and of immediate payment in your favor, for the amount of 1,213,539 USD (One Million Two Hundred and Thirteen  Thousand Five Hundred and  Thirty Nine US Dollars), in order to guarantee the due fulfillment of the supply of an electronic ID system of the CONTRACT FOR THE SUPPLY, INTEGRATION AND MAINTENANCE SERVICES  FOR THE IT SOLUTION  AT A NATIONAL LEVEL OF THE TECHNOLOGICAL MODERNIZATION PROJECT OF THE DIRECCION GENERAL DEL REGISTRO CIVIL, IDENTIFICACION Y CEDULACION (hereinafter the “Agreement”); and to respond for the obligations that ON TRACK INNOVATIONS LTD. (hereinafter the “Supplier”) would contract related with the purpose of the Agreement that the DIRECCION GENERAL DEL REGISTRO CIVIL, IDENTIFICACION Y CEDULACION DEL ECUADOR (the “Beneficiary”) to be signed with the Supplier on December  09, 2009 for the supply of an electronic ID system, integration services and maintenance, and electronic base identification cards.

 

This guarantee will remain in force until October 15, 2010, on which date this guarantee shall be considered cancelled  without the return of original or copies of the present document, whereupon Citibank N.A., Sucursal Ecuador and as a consequence Bank Leumi Leisrael B.M. will be free of any responsibility that will be able to derive from the present guarantee.

 

It is understood that this guarantee will be able to become effective in the sole case that to be presented to us, prior to October 15, 2010, the original of this document and communication subscribed in writing by the legal representative of THE DIRECCION GENERAL DEL REGISTRO CIVIL, IDENTIFICACION Y CEDULACION DEL ECUADOR, in which Beneficiary states that

 

	
  

	
1)

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

 

	
  

	
2)

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

 

  

  

  

 

This guarantee does not have relation with any other document (including other guarantees issued in relation to the Agreement), instrument or existing contract or any that it will subscribe in the future between  the Direccion General del Registro Civil, Identificacion y Cedulacion of Ecuador and the Supplier (our entity guarantee), and such documents, instruments or contracts do not modify it; therefore, we do not assume any legal or other responsibility for any other order that is not the one that is stipulated specifically in this document.

 

Yours faithfully,

 

 (AUTHORIZED SIGNATURE)

 

Citibank N.A., Sucursal Ecuador

 

  

  

  

 

ADVANCE PAYMENT GUARANTEE

 

(For Main System)

 

(Article 2.2.3.2 of the Contract)

 

LOCAL TEXT GUARANTEE:

Department:  GUARANTEE DEPT.

Ref:  (OURS and the foreign bank’s)

Date:  ..................

Sirs

....................

Dear Sirs:

Under account, order and risk of BANK LEUMI LE ISRAEL B.M. (foreign bank),  We, Citibank N.A., Sucursal ,Ecuador, establish an unconditional, irrevocable bank guarantee and of immediate payment in your favor, up to the amount of **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**  USD (**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** U.S. Dollars), equal to the amount of the **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** advance payment for the supply of an electronic ID system that the DIRECCION GENERAL DEL REGISTRO CIVIL, IDENTIFICACION Y CEDULACION DEL ECUADOR (hereunder the “Beneficiary”) will pay to ON TRACK INNOVATIONS LTD. (hereunder the “Supplier") relating to the CONTRACT FOR THE SUPPLY, INTEGRATION AND MAINTENANCE SERVICES  FOR THE IT SOLUTION  AT A NATIONAL LEVEL OF THE TECHNOLOGICAL MODERNIZATION PROJECT OF THE DIRECCION GENERAL DEL REGISTRO CIVIL, IDENTIFICACION Y CEDULACION to be signed on December 09, 2009) (the "AGREEMENT") between the Beneficiary and the Supplier, for the supply of an electronic ID system, integration services and maintenance, and electronic base identification cards.

 

It is understood that this guarantee will be able to become effective in the sole case that to be presented to us, prior to February 28, 2010 the original of this document and communication subscribed in writing by the legal representative of the DIRECCION GENERAL DEL REGISTRO CIVIL, IDENTIFICACION Y CEDULACION DEL ECUADOR,  in which Beneficiary states that

 

1) The AGREEMENT between Supplier and the Beneficiary is current and the Beneficiary had paid the corresponding advance payment in the amount of **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** USD to the Supplier account no. **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** with Bank Leumi Le Israel B.M. branch no. **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** with ref. to this guarantee number, and;

 

2) The Supplier has violated his contractual obligations, and

 

  

  

  

 

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

 

THIS GUARANTEE WILL BE REDUCED as follows:

 

1. MILESTONE AM1: USD **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** of the total guarantee amount stated above] - to be deducted upon the earliest of (a) the presentation by the Supplier of a written approval from the Beneficiary, to the effect that the Supplier fulfilled the duties required for Milestone AM1; or (b) automatically on December 28, 2009, without a need for approval.

 

2. MILESTONE AM2: USD **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** of the total guarantee amount stated above] - to be deducted upon the earliest of (a) the presentation by the Supplier of a written approval from the Beneficiary, to the effect that the Supplier fulfilled the duties required for Milestone AM2; or (b) automatically on January 29, 2010, without a need for approval.

 

3. MILESTONE AM3: USD **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** of the total guarantee amount stated above] - to be deducted upon the earliest of (a) the presentation by the Supplier of a written approval from the Beneficiary, to the effect that the Supplier fulfilled the duties required for Milestone AM3; or (b) automatically on February 15, 2010, without a need for approval.

 

4. MILESTONE AM4: **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** of the total guarantee amount stated above] - to be deducted upon the earliest of (a) the presentation by the Supplier of a written approval from the Beneficiary, to the effect that the Supplier fulfilled the duties required for Milestone AM4; or (b) automatically on February 28, 2010, without a need for approval.

 

This guarantee will expire on February 28, 2010, the expiry date, and will be deemed automatically cancelled on that date, without the return of original or copies of the present document, whereupon Citibank N.A., Sucursal Ecuador will be free of any responsibility that will be able to derive from this guarantee.

 

This guarantee does not have relation with any other document, instrument or existing contract or any that it will subscribe in the future between you and the supplier (our entity guarantee), and such documents, instruments or contracts do not modify it, therefore we do not assume any legal or other responsibility nor any other order that it is not the one that is stipulated specifically in this document.  Accordingly, we further acknowledge that this guarantee, including its payment, terms and conditions, shall in no way or form be linked, conditioned or otherwise connected to any other outstanding or future guarantee issued with relation to the Agreement, or any other transaction entered into by the Supplier.

 

Yours faithfully,

(AUTHORIZED SIGNATURE)

Citibank N.A., Sucursal Ecuador

 

  

  

  

 

ADVANCE PAYMENT GUARANTEE

(For **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR 

CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** eID Cards)

 

(Article 2.2.3.2 of the Contract)

 

	
Department:

	
GUARANTEE DEPT.

	
Ref:

	
(OURS and the foreign bank’s)

	
Date:

	
___________

	
Sirs

	  
	
....................

	  

Dear Sirs:

Under account, order and risk of BANK LEUMI LE ISRAEL B.M. (foreign bank),  We, Citibank N.A., Sucursal Ecuador, establish an unconditional, irrevocable bank guarantee and of immediate payment in your favor, for the amount of USD **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.** Dollars of the United States of America), equal to the amount of the **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** advance payment for the supply of **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** electronic identification cards that the DIRECCION GENERAL DEL REGISTRO CIVIL, IDENTIFICACION Y CEDULACION DEL ECUADOR (hereunder the “Beneficiary”) will pay to ON TRACK INNOVATIONS LTD. (hereunder the “Supplier") as an advance payment of the CONTRACT FOR THE SUPPLY, INTEGRATION AND MAINTENANCE SERVICES FOR THE IT SOLUTION AT A NATIONAL LEVEL OF THE TECHNOLOGICAL MODERNIZATION PROJECT OF THE DIRECCION GENERAL DEL REGISTRO CIVIL, IDENTIFICACION Y CEDULACION to be signed on December 09, 2009 (the "AGREEMENT") between the Beneficiary and the Supplier, for the supply of an electronic ID system, integration services and maintenance, and electronic base identification cards.

 

It is understood that this guarantee will be able to become effective in the sole case that to be presented to us, prior to June 30, 2010 the original of this document and communication subscribed in writing by the legal representative of the DIRECCION GENERAL DEL REGISTRO CIVIL, IDENTIFICACION Y CEDULACION DEL ECUADOR,  in which Beneficiary states that

 

	
  

	
1)

	
The AGREEMENT between Supplier and the Beneficiary is current and the Beneficiary had paid the corresponding advance payment in the amount of USD **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** Dollars of the United States of America), to the Supplier account no. **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** with Bank Leumi Le Israel B.M. branch no. **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** with ref. to this guarantee number, and;

 

  

  

  

 

	
  

	
2)

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

 

The guaranteed amounts shall be reduced by full value of the commercial invoice attached to the pertaining transport document upon Supplier’s presentation to us of a commercial invoice and the corresponding transport document, showing shipments of goods to Ecuadorian Airport or Port.  The reduction shall be effected 2 weeks following the date of the arrival of the related goods to Ecuadorian Airport or Port, as will be indicated in the transport document. As an alternative (that will apply if occurring earlier), the guarantees will be reduced upon the presentation by the Supplier of the Beneficiary’s written acceptance statement for the cards supplied, indicating the amount to be reduced.

 

This guarantee will expire on June 30, 2010, the expiry date, and will be deemed automatically cancelled  on that date (if not previously cancelled), without the return of original or copies of the present document, whereupon Citibank N.A., Sucursal Ecuador and Bank Leumi Leisrael B.M. will be free of any responsibility that will be able to derive from this guarantee.

 

This guarantee does not have relation with any other document, instrument or existing contract or any that it will subscribe in the future between La Direccion General del Registro Civil, Identificacion y Cedulacion and the supplier (our entity guarantee), and such documents, instruments or contracts do not modify it, therefore we do not assume any legal or other responsibility nor any other order that it is not the one that is stipulated specifically in this document.  Accordingly, we further acknowledge that this guarantee, including its payment, terms and conditions, shall in no way or form be linked, conditioned or otherwise connected to any other outstanding or future guarantee issued with relation to the Agreement, or any other transaction entered into by the Supplier.

 

Yours faithfully,

 

(AUTHORIZED SIGNATURE)

 

Citibank N.A.,  Sucursal Ecuador

 

  

  

  

 

TECHNICAL WARRANTY

(Article 2.2.3.3 of the Contract)

On Track Innovations Ltd. (OTI) –Durability Warranty for Electronic ID Cards

 

On Track Innovations Ltd. (OTI or “Vendor”) shall provide a durability warranty for the Electronic ID Cards sold to the Direccion General del Registro Civil, Identificacion y Cedulacion (“Buyer”) under the CONTRATO DE SUMINISTRO DE  **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** DE TARJETAS ELECTRONICAS DE IDENTIFICACION (PROYECTO DE MODERNIZACIÓN TECNOLÓGICA DEL REGISTRO CIVIL) dated December 9th, 2009.  The warranty shall be for a period of 10 years from the date of arrival of the cards to the Ecuador Airport or Port.

 

This warranty is given solely to the Buyer (as opposed to any third parties, including third parties who bought the Vendor’s products from Buyer), and shall not apply: (i) if products have been damaged, misused, abused, lost or stolen; or (ii) if defects result from misapplications and/or modifications not authorized by the Vendor which have been made to the products by any one other than the Vendor; or (iii) if products have been submitted to abnormal conditions (mechanical, electrical or thermal) during storage, installation or use; or (iv) if products are used in a nonstandard environment. A non standard environment is an environment requiring a robustness not documented in the applicable specification such as without limitation, space, military or nuclear environments; or (v) to products supplied at the request of Buyer which Vendor has indicated may not conform (risk products) to applicable technical specifications or constitute experimental, developmental or nonqualified products; or (vi) if the request for warranty coverage of products results from excess usage of the maximum values (temperature limit, maximum voltage etc.) defined by Vendor, or from an incorrect choice of application by Buyer or from use other than in accordance with the relevant specification; or (vii) to any other default not attributable to Vendor. If Vendor determines that products are covered under the warranty, Vendor will, at Vendor’s option, repair or replace them, or issue a credit or rebate of the purchase price.

 

THE FOREGOING WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, CONDITIONS OR TERMS EXPRESS OR IMPLIED BY STATUTE OR COMMON LAW (INCLUDING WITHOUT LIMITATION WARRANTIES AS TO MERCHANTABLE QUALITY OR SATISFACTORY QUALITY OR FITNESS FOR A PARTICULAR PURPOSE OR USAGE).

 

Claims for replacement of electronic ID cards covered by the warranty shall be handled by the Direccion General del Registro Civil, Identificacion y Cedulacion, which will gather cards for replacement from its various offices if needed, and will subsequently refer the related requests for replacement to OTI, either when it accumulated a batch of no less than 1,000 cards, or every half a year, whichever occurs earlier.

 

Name: _______________

 

Title: _______________

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