Document:

EXHIBIT 10.13

                                          CONFIDENTIAL TREATMENT REQUESTED.
                                          CONFIDENTIAL PORTIONS OF THIS DOCUMENT
                                          HAVE BEEN REDACTED AND HAVE BEEN
                                          SEPARATELY FILED WITH THE COMMISSION.

                            CONTRACT NO: LSA 20040831

                          LICENSE AND SUPPLY AGREEMENT

                            FOR RADIO LOCATION SYSTEM

                                     BETWEEN

                                VISION PLANT INC.

                                   (CUSTOMER)

                                       AND

                            TELEMATICS WIRELESS LTD.

                                   (SUPPLIER)

                                 AUGUST 31, 2004

Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

                          LICENSE AND SUPPLY AGREEMENT
                           FOR RADIO LOCATION SYSTEM
             BETWEEN VISION PLANT INC. AND TELEMATICS WIRELESS LTD.

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This Agreement, is made this 31st day of August 2004, between on the one hand
the Korean company under the name of Vision Plant Inc. (hereinafter referred to
as the "Customer"), having its registered office at 13th FL., Sewoo Building,
837-12, Youksam-dong, Kangnam-ku, Seoul, Korea and on the other hand the Israeli
company under the name of Telematics Wireless Ltd. (hereinafter referred to as
the "Supplier"), having its registered office at 26 Hamelacha st., Holon,
Israel.

RECITALS

WHEREAS, the Customer intends to do the business of Location Based Services in
the Republic of Korea and to obtain the Business License and/or the Spectrum
License ranging 377-380? as well as 322-328.6? for the operation of a land-based
radio location system, and for that purpose the Customer plans to submit the
application for the business license to the Korean government. After the license
is granted, a new company which will run the business (hereinafter the
"Operation Company") will be formed at the initiative of the Customer;

WHEREAS, the Customer wishes to set up the System in the Territory and Region to
provide services for mobile location, short message and emergency alarm to the
Customer's subscribers;

WHEREAS, the Parties entered into Memorandum of Understanding (MOU) on 28 June
2004 as a step to discuss and sign this Agreement for mutual collaboration and
benefit of the Parties;

WHEREAS, the Supplier is in the business of supplying such Systems including the
training of personnel and pursuant to this Agreement is responsible for the
total System guarantee, provided that certain base station equipment and end
units are manufactured in the Territory;

WHEREAS, the Supplier developed base stations, vehicular units and personal
units for the identification of the units' location and receiving/transmitting
messages and is in the business of manufacturing, supplying and supporting of
such components;

WHEREAS, Special Equipment of the System have been developed by the Supplier.
The Supplier shall retain the title and ownership of the intellectual property
rights or know-how relating to the special equipment of the System, and will
possess all the licenses for other components of the System.

WHEREAS, the Customer declares that it will be able to finance the deployment of
the System in the Territory and to establish the Operation Company to
commercially operate the System, and to provide qualified and skilled personnel;
and declares that it will have the ability and personnel to manage and supervise
the operation of the System in the Territory, after the Business License and/or
Spectrum License if applicable is granted and the Operation Company is formed;
and

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Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

WHEREAS, the Supplier wishes to associate with the Customer and to provide to
the Customer the Contractual Items as described herein, relying exclusively on
the terms and conditions of this Agreement and its Annexes which shall
constitute an integral part thereof;

NOW THEREFORE, in consideration of the mutual promises, covenants, and
conditions herein contained, the Customer and the Supplier agree as follows:

ARTICLE 1 DEFINITIONS

The following terms shall have the meaning that is provided hereunder (it is
understood that other terms and acronyms / abbreviations may be additionally
defined in other locations of this Agreement):

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TERM                          DEFINITION
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Advance Payment               The sum of ___ USD to be paid in cash by the
                              Customer to the Supplier on the Commencement Date.

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Agreement                     This Agreement executed this 31st day of August,
                              2004 between the Customer and the Supplier
                              inclusive of its Articles and Annexes which shall
                              constitute an integral part thereof.

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Business License              Means the license. to be granted by the Korean
                              Government for the Customer or the Operation
                              Company to operate the Radio Location System in
                              the Territory and may include the Spectrum
                              License.

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CDR                           Indicates the schedule for each Phase defined in
                              paragraph 3.2 of Annex I and stands for Critical
                              Design Review.

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Commencement Date(s)          The date that the Advancement Payment for each
                              Phase is paid to the Supplier by the Customer
                              together with the LOC as described in Article 5.4.

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Contractual Items             All of the items provided by the Supplier to the
                              Customer in accordance with this Agreement,
                              (including Products, Services and System specified
                              in this Agreement, Annexes, and Appendixes), as
                              specified in this Agreement, as the object of the
                              Supplier's contractual obligation.

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the Customer                  Vision Plant Inc.

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Customer Furnished            The equipment to be furnished by the Customer for
Equipment(FE)                 the implementation of this Agreement as specified
                              in Annex I.

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Customer Furnished            The information to be furnished by the Customer
Information (FI)              for the implementation of this Agreement as
                              specified in Annex I.

                              For the purposes of the above definitions, i.e.
                              FE, FIN and FS the term the Customer shall include
                              the Customer's subcontractors and its suppliers.

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Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

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TERM                          DEFINITION
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Customer Furnished            The installations to be performed by the Customer
Installations (FIN)           for the implementation of this Agreement as
                              specified in Annex I.

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Customer Furnished Services   The services to be furnished by the Customer for
(FS)                          the implementation of this Agreement as specified
                              in Annex I.

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Defect(s)                     Any defect that concerns the material and / or the
                              workmanship of the Products or/and the System
                              which causes operational noncompliance with the
                              specifications of the System.

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Demonstration System          Means the partial System to be deployed for the
                              verification of the performance of the System for
                              Phase One as specified in paragraph 3.2 of Annex
                              I.

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Estimated Price               Shall have the meaning as described in Article
                              5.1.2.

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Final Acceptance              Shall mean the issuance by the Customer of the
                              certification of completion of FAT following the
                              successful completion of the Processes and Final
                              Acceptance Tests in accordance with Article 10 and
                              based on the principles as outlined in Annex I or
                              upon the fulfillment of the conditions provided in
                              Article 10.1.2 hereto.

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Final Acceptance Test (FAT)   All the tests to be conducted for Final Acceptance
                              as defined in Articles 9 and 10 and Annex I.

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Full System Delivery (FSD)    Full System Delivery (FSD) means the acceptance of
                              the full System as described in Annex I (SOW).

                              The System shall be fully functional and shall
                              satisfy the Specifications and requirements of the
                              Agreement and they shall be ready for full
                              operational use.

                              All the following have been completed:

                              o program management,

                              o the requirements of the System including
                              definition, engineering, adaptation, installation,
                              integration, commissioning, certification of
                              conformity, training and the fulfillment of
                              Articles 9 and 10 of the Agreement and

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                              o all contractual documentation in English and the
                              User training, operational and maintenance manuals
                              in the English language.

                              o All specified infrastructure and quantities of
                              equipment, software and services according to
                              Expected Quantity specified in Annex III have been
                              delivered and installed.

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Agreement                                                                 Page 4

Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

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TERM                          DEFINITION
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Handover Date(s)              Shall mean one (1) month after Final Acceptance
                              Date for each Phase specified in Article 10 and as
                              further specified in item k of paragraph 3.2 of
                              Annex I.

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Integration                   The integration by the Supplier of the System and
                              the relevant parts thereof under the participation
                              and support by the Customer, as described in
                              paragraphs 4 and 5 of Annex I of the Agreement, in
                              the integration of the System.

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Ituran Technologies           Has the meaning of all the technologies and core
                              infrastructure held by the Supplier with regard to
                              Radio Location System.

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Letter of Credit              Letter of Credit issued by First Class
                              International Bank in the form as specified in
                              Appendix A of Annex II for the total sum of the
                              deployment cost less the Advance Payment for each
                              Phase

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Local Licenses                Any permits, licenses and authorizations needed to
                              execute this Agreement in the Territory or Region.

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(the) Party/Parties           The parties of this Agreement, i.e the Customer
                              or/and the Supplier.

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PDR                           Indicates the schedule for each Phase defined in
                              paragraph 3.2 of Annex I and stands for
                              Preliminary Design Review.

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Performance Bond              Has the meaning and form as specified in Article
                              5.5.1 and Appendix B of Annex II.

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Phase                         Has the meaning defined in paragraph 3.1 of Annex
                              I and consists of Phase One, Phase Two and Phase
                              Three.

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Products (or Special          Any individual item specified to be delivered by
Equipment)                    the Supplier in accordance with the terms of this
                              Agreement as part of the System including
                              hardware, software and any spare parts that may be
                              ordered by the Customer and delivered to by the
                              Supplier, as further defined in Annex I and Annex
                              III.

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Radio Location System         This is the entire complete and operational system
(System)                      based on Ituran Technologies to provide services
                              for mobile location, short message, and emergency
                              alarm to the Customer's subscribers.

                              The System shall consist of components, including
                              but not limited to, mobile units,
                              receiving/transmitting base stations, a control
                              center, paging units, terrestrial communication
                              lines management organization and logistic
                              control.

                              This System is made up of the following separate
                              Systems:

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Agreement                                                                 Page 5

Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

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TERM                          DEFINITION
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                              o    Base Stations - for receiving and processing
                                   of the Vehicle Location Units and Personal
                                   Alarm and Locator transmissions.

                              o    Vehicle Location Units - vehicular units for
                                   receiving and transmitting messages and
                                   signals for identification of the units'
                                   location.

                              o    Personal Alarm and Locator Units - personal
                                   units for receiving and transmitting messages
                                   and signals for identification of the units'
                                   location.

                              o    Network Control Center (NCC).

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Radio Location System         The License described in Article 4.
License

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Region                        The Republic of Korea, the Far East and South East
                              Asian countries, including Japan but excluding:
                              China, Hong Kong SAR and Taiwan. On the
                              Commencement Date, if there is no significant
                              progress of the business by the Supplier in
                              Malaysia or Singapore or Thailand, the countries
                              in which no progress has achieved, shall be
                              included in the Region. If, on the other hand,
                              four (4) years after the Commencement Date, there
                              is no significant progress of the business by the
                              Customer in any other country as stated above, the
                              countries in which no progress has been achieve,
                              shall be excluded from the Region.

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Services                      All services that shall be provided by the
                              Supplier under the terms of this Agreement,
                              including the design, integration, the updating of
                              software & hardware of the System, and the
                              training for the Customer's personnel.

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Spare Parts Availability      Means that the Supplier shall for a period of
                              seven (7) years from the Handover Date for each
                              Phase, have available all spare parts required in
                              accordance with the provisions of Articles 12 and
                              41.3.

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Spectrum License              Spectrum License to be granted by the Korean
                              Government which may be included in the business
                              license ranging 377-308? as well as 322-328.6? for
                              the operation of a land-based radio location
                              system.

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the Supplier                  Telematics Wireless Ltd.

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Technical Documentation       The technical documentation/ bibliography to be
                              provided by the Supplier to the Customer in
                              accordance with Article 37.

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Territory                     the Republic of Korea

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Agreement                                                                 Page 6

Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

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TERM                          DEFINITION
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Training                      The Supplier is obliged to train selected
                              personnel of the Customer. This personnel shall
                              have, following completion of the training
                              program, the knowledge required to train the
                              personnel of the Customer in order to operate and
                              maintain the System,

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Type Approval                 Has the meaning as specified in Article 19.

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Warranty Bond                 Has the meaning and form as specified in Article
                              12.8 and Appendix C of Annex

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Warranty or Warranty          Means the warranty to the Products to be provided
Obligation                    by the Supplier in accordance with the terms of
                              Article 12 hereto for a period of one (1) year
                              following the Handover Date.

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ARTICLE 2 SUBJECT AND SCOPE OF THIS AGREEMENT

2.1 Pursuant to the stipulations, the terms and the conditions of this
Agreement, the Supplier undertakes the obligation to participate in a site
survey, design in detail, manufacture, install, test, complete, develop,
integrate, sell and deliver to the Customer the System, as specified in Annex I
and provide the Services in accordance with Annex I as well as fulfill all of
its obligations as defined in this Agreement. The Supplier shall provide the
Customer with specific hardware and software manufactured by the Supplier and
shall provide the engineering and technical planning and design of the System
and designate the qualified personnel to train and participate in the
establishment of the System as specified in this Agreement.

2.2 The Contractual Items shall be delivered and installed by the Supplier to
the installations specified in the terms and conditions of this Agreement (Annex
I). The Customer shall purchase the Contractual Items, exclusively from Supplier
during the entire period in which the Customer will run the business and
operation of the Radio Location System in the Territory or Region. The Customer
shall procure exclusively from the Supplier software, equipment and facilities,
except those developed by the Customer and not competing with Contractual Items,
required for the provision of the Radio Location System in the Region.

2.3 All Products to be delivered to the Customer shall be new and complete, have
the technology and construction defined in Annex I and shall be constructed from
high quality, new, unused material in accordance with the requirements of this
Agreement.

2.4 The Parties shall localize the Ituran Technologies for the purpose of
meeting all the mandatory technical requirements specified by the Korean
Government. The Supplier shall assist and support the Customer in the
localization of relevant portions of Ituran Technologies. The local
manufacturing of certain equipment and facilities by the Supplier shall meet the
licensing conditions set forth by the Korean Government.

Agreement                                                                 Page 7

Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

ARTICLE 3 TERM OF THE AGREEMENT / EFFECTIVITY

3.1 This Agreement shall become effective at the date (Effective Date) that it
has been duly executed by both Parties hereto. This Agreement shall be
terminated unless the Customer has submitted to the Supplier the Advancement
Payment and the Letter of Credit (LOC) within twelve (12) months from the
Effective Date or the date to be extended by mutual agreement.

3.2 The duration of this Agreement (hereinafter as "Term") is ten (10) years.
The Term shall be extended automatically for a further period of ten (10) years
subject to the Customer not being in breach and/or default of any material term
or material condition of this Agreement. Upon the expiry of the second period of
ten (10) years, the currency of this Agreement shall continue indefinitely
subject to either Party giving to the other not less than three (3) calendar
years termination notice. Unless the Parties otherwise agree in writing at any
time, the provisions of this Agreement shall continue in force and effect on the
same terms and conditions.

ARTICLE 4 RADIO LOCATION SYSTEM LICENSE

4.1 The Supplier on its own behalf and on behalf of other companies that license
Ituran Technologies including Teletrac (a U.S. Company), shall grant the
Customer a sole and exclusive license to use the Ituran Technologies in the
Territory, including without limitation the System, and certain solutions and
all software of the Supplier, as long as they are incorporated in the System,
for the purpose of operating, maintaining and promoting the terrestrial
location-based services to the potential subscribers and end-users including but
not limited to, the general public, military, marine, police, and security
forces, within the Territory pursuant to the terms of this Agreement.

4.2 The Radio Location System License by the Supplier shall be comprised of the
license for the total system and the license for NCC (Network Control Center)
software per NCC. Any monthly service fee or royalty fee per subscriber or
transponder shall not be charged to the Customer in any case.

4.3 The Supplier (inclusive of Ituran and Teletrac) shall not directly, or shall
not grant any license, concerning Ituran Technologies, to any company that
intends to, provide any license for the Radio Location System in the Territory
or sublicense the Ituran Technologies to any Korean company which may engage in
such services in the Territory. The Supplier hereby declares that it possesses
all necessary licenses from other Parties (including Teletrac) to fulfill its
obligations under this Agreement.

4.4 After signing this Agreement between the Parties, the Customer or its
related companies shall not engage with other companies that provide location
technology competitive with Ituran Technologies.

ARTICLE 5 PRICE, PAYMENT AND INVOICING REQUIREMENTS

5.1 Price.

5.1.1 The total amount of the Estimated Price to be paid by the Customer to the
Supplier for the fulfillment of the Supplier's obligations under this Agreement
is described in Annex III.

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Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

5.1.2 The Estimated Price, as defined in Annex III, is calculated, among others,
on the basis of the Expected Quantity defined in Annex III, i.e. unit prices
multiplied on the basis of quantity supplied, plus the lump sum not directly
related to the quantity. For reasons of clarity, it is specified that while the
number of items defined in the Expected Quantity in Annex III may vary (increase
or decrease) the price per unit for each Phase shall remain fixed with respect
to Phases I, II and III. Accordingly, in cases of increase or decrease of the
number of the items defined in the Expected Quantity, the Price shall be
modified proportionately to such change, as aforementioned (the "Price") at
Commencement Date or later date as may be agreed between the Parties for each
Phase. Payment shall be made in US Dollars. The Estimated Price for each Phase
is quoted in Annex III. The Total Contract Price for each Phase (hereinafter
"Contract Price) is the price on the Commencement Date when the Customer
finalizes the Expected Quantity in Annex III.

5.1.3 The Estimated Price, as defined above, is FOB Tel - Aviv Israel. However,
the Customer has the right to ask the Supplier change it to CIF or other
available shipping method at his own discretion. In such case, its corresponding
price modification including transportation and insurance costs will be
applicable.

5.2 Payment Terms

5.2.1 The Customer shall pay the Contract Price to the Supplier in accordance
with the terms and conditions set forth in this Article and Annex III.

5.2.2 A fourteen (14) business days delay by the Customer in the scheduled
payment dates is considered as an Excusable Delay to accommodate fixed scheduled
payment dates of the Customer.

5.3 Income Tax

The Supplier and its subcontractors shall pay their corresponding income tax in
accordance with the provisions of the Korean or the Israeli Law or the
applicable bilateral agreement for the avoidance of double taxation, as the case
may be. The Customer is authorized for the deduction and payment by the Customer
of certain withholding taxes imposed under the Korean law. Provided that the
Customer shall provide the Supplier with an official tax receipt issued by the
competent tax authorities in Korea evidencing the payment of such withholding
tax in the content, and form sufficient for the Supplier to facilitate any tax
credits in Israel. However, if the percentage of the withholding tax will become
above ten (10) percent, the price for the relevant item which is subject to the
above withholding tax shall be increased by the difference between the actual
percentage of the withholding tax and ten (10) percent

5.4 Letter of Credit (LOC) issued by First Class International Bank for the
total sum of the Estimated Price less the Advance Payment will be provided on
the day of the Advance Payment. The content of this LOC is provided in Appendix
A of Annex II. The payment of the Advance Payment to the Supplier shall be made
directly to the bank account specified in writing by the Supplier. The payment
of the Contract Price (other than the Advancement Payment) less any withholding
tax of Korea to the Supplier shall be made through LOC.

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Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

5.5 Commencement Date(s)

Commencement Date(s) is the date that the Advance Payment for each Phase is
received to the bank account designated by the Supplier in accordance with the
payment schedule shown in this Article and Annex III. The deployment schedule
for each Phase will start from this Commencement Date.

5.5.1 Performance Bond

Within fourteen (14) calendar days of the Commencement Date for each Phase the
Supplier shall provide a Performance Bond in the face amount equal to the ten
(10) percent of the Contract Price for each Phase. The expiry date for the
Performance Bond of each Phase shall be the Handover Date for each Phase. If the
Supplier can not perform material obligations specified in this Agreement, which
are critical to the overall performance of the System, the Performance Bond
shall be withdrawn from the bank as specified in Appendix B of Annex II. If,
however, the above material obligations are eventually completed and do not
cause subsequent Termination, the amount withdrawn from the Performance Bond
shall be returned to the Supplier.

5.5.2 Anticipated Commencement Date for Phase One

After the business license from the Korean government is granted, the Operation
Company will be formed and the company will collect investment from its share
holders. The Operation Company will pay the Advance Payment within ninety (90)
days from its foundation.

5.6 Reconciliation of Accounts

Within one (1) month from the fulfillment of the Final Acceptance, the final
account reconciliation for the delivered Contractual Items shall be performed.
If a difference exists between the amount of the final account reconciliation
and the Price of this Agreement corresponding to the obligations of the Supplier
related to the Final Acceptance, this difference shall be resolved within one
(1) month from the final account reconciliation, as follows:

a. If the difference is in favor of the Customer, by payment of this difference
in cash by the Supplier in accordance with the Customer's written instructions.

b. If the difference is in favor of the Supplier, by payment of this difference
in cash by the Customer in accordance with the Supplier's written instructions.

On completion of the final account reconciliation, the Customer and the Supplier
shall sign a certificate stating that neither Party has any claims with regard
to the payment of the Price under this Agreement.

5.7 Payment for Contract Variation

Any contract Variation shall be invoiced and paid in accordance with the terms
of the Contract Variation as specified in Article 8 of this Agreement.

5.8 Banking Charges

Any banking charges, commissions, levies and other costs associated with the
payment by the Customer to the Supplier shall be for the account of and payable
by the Customer.

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Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

ARTICLE 6 SPECIFICATIONS

The Contractual Items to be delivered by the Supplier to the Customer in
accordance with this Agreement shall be new, fully compatible and
inter-operational between them and in accordance with Annex I. Detailed System
Specifications will be submitted at PDR in accordance with Annex I.

ARTICLE 7 SPECIFICATION AMENDMENTS

7.1 No modifications to the specifications are allowed unless otherwise
prescribed in this Agreement or otherwise agreed between the Parties.

7.2 If the Supplier, during the implementation of the Agreement, discovers that
its technical solution does not conform to the operational Specifications
described in Annex I, the Supplier shall notify the Customer in writing,
specifying the details of the non conformance.

7.3 In this event, the Supplier shall be obliged to propose for acceptance to
the Customer, a respective modification of the specifications of the System or
part of them, for the fulfillment of the requirements of the operational
specifications that are described in Annex I, taking into consideration the
timeframe. The Customer shall provide to the Supplier approval or comments
forthwith upon the approval or comments. If the Supplier chooses to implement
modification, the cost shall be discussed and borne by the Supplier and the
timeframe shall be adjusted accordingly.

7.4 In the event the Customer requires modification of the operational
Specifications of the System or part of them not specified in this Agreement,
the Supplier shall present the reasonable cost the implementation and
incorporation of modifications asked by the Customer taking into consideration
the timeframe. If the Customer chooses to implement modification, the cost shall
be discussed and borne by the Customer and the timeframe shall be adjusted
accordingly.

7.5 Following the Agreement for the acceptance of the specifications'
modification, the procedures for the amendment of the Agreement shall be taken
in accordance with Article 40.

ARTICLE 8 CONTRACT VARIATION

8.1 Either Party may request in writing, during the course of the validity of
this Agreement, a contract variation requiring additions, deletions or
modifications to the terms of this Agreement. If the other Party consents, in
its sole discretion, to such variation then the change will be formalized as an
amendment to this Agreement.

8.2 Notwithstanding the provisions of 8.1 above, the Customer may request supply
of extra Base station equipment up to a quantity equal to a half of the original
supply quantity at prices defined in Annex I for each Phase and the Supplier
shall be bound to accept such amendment. The terms and conditions for such
supply, including timing, shall be reasonably agreed between the Parties.

8.3 A contract variation shall not become effective unless the amendment
documentation is signed by an authorized representative of each Party.

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Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

8.4 The Parties shall use commercially reasonable efforts to mutually agree to a
detailed administrative procedure for the approval and documentation of Contract
Variation.

ARTICLE 9 ACCEPTANCE PROCEDURES

9.1 The Final Acceptance of the System shall be deemed to be effected in
accordance with the terms and provisions of this Article and of Article 10 and
in accordance with the principal guidelines defined in Appendix D of Annex I.
The detailed Final Acceptance Procedures will be provided on CDR. The Supplier
shall make ready the System for testing procedures in accordance with the
timetable provided in Annex I of this Agreement. A copy of the Completed
Acceptance Plan of the System regarding the testing procedures shall be drafted
and submitted by the Supplier to the Customer and shall be approved by Customer
at least thirty (30) calendar days prior to the dates the testing procedures are
scheduled to take place. The Acceptance Test Principles are described in
Appendix D of Annex I of this Agreement.

9.2 The Customer shall be responsible for a proper number of authorized
personnel to participate in the acceptance procedure.

9.3 If the tests performed during the application of the Complete Acceptance
Plan for the acceptance of the System are not successful according to the
Complete Acceptance Plan, these tests shall be repeated immediately and within
the timetable defined in the Complete Acceptance Plan, until they are completed
successfully. The Supplier shall repair malfunctions and/or failures/Defects,
which may occur in the System observing however the delivery timetable of this
Agreement.

9.4 The acceptance procedure shall be completed as soon as the following are
achieved:

a. The tests for the System have been completed by the Parties, through the
signature of the System Acceptance Report ("SSAR").

b. Every and all of the materials, equipment and other items provided in the
Bill of Quantities have been delivered, installed and tested for each one of the
System,

c. The training has been completed and the Customer's trainees have been
certified with the Certificate of Training for the operation and maintenance of
the System.

d. All of the written documentation has been delivered to the Customer.

9.5 Delay Penalty

In the event of any anticipated delay in achieving the FAT date (item j)
specified in paragraph 3.2 of Annex I, due solely to the default of the
Supplier, the Supplier shall be required to immediately notify the Customer that
such a delay will occur. Upon such notification, the Customer shall grant a
grace period of sixty (60) days to remedy the delay. If the delay has not been
remedied within the grace period of sixty (60) days, the Supplier shall pay, as
liquidated damages, for its default and as a penalty, the amount of zero point
one five (0.15%) of the total Contract Price for each Phase per day, beginning
from the thirty (30) days after the FAT date (item j), not to exceed ten percent
(10%) of the total Contract Price for each Phase. The

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Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

foregoing states the entire obligation of the Supplier, and the sole remedy of
the Customer, with respect to the delay as mentioned above.

ARTICLE 10 DELIVERY - ACCEPTANCE - RISK OF LOSS OR DAMAGE

DELIVERY - ACCEPTANCE

10.1.1 The, Supplier shall deliver the System, ready for operational use, and in
accordance with the timetable specified in paragraph 3.2 of Annex I of this
Agreement.

10.1.2 The System shall be accepted by the Customer one month after the Final
Acceptance Tests have been successfully completed and the final test reports
have been approved by the Customer. In the event that the Customer has not sent
to the Supplier, any written notice regarding a Defect or non successful Final
Acceptance Test, as defined in Article 9 above, then the System shall be deemed
to have achieved Final Acceptance for the purposes of this Agreement and shall
be considered to have been accepted by the Customer within thirty (30) days
after the submission of the final acceptance test reports of the System. The
Supplier is considered to have fulfilled all contractual obligations related to
the delivery of the System and shall have the right to receive the respective
final payment.

10.1.3 All Contractual Items shall be delivered in accordance with the terms and
conditions specified in this Agreement.

10.1.4 The training shall be considered to have been provided properly, upon the
issuance and execution by the Supplier of a Certificate certifying that the
training has been completed and provided in accordance with the terms and
conditions of this Agreement.

10.2 The Supplier, upon the date of the issuance of the Final Acceptance
Certificate, shall transfer and deliver to the Customer all Contractual Items,
free from Defects, any claims of third parties, liens, encumbrances and other
legal defects.

RISK OF LOSS OR DAMAGE

10.3 All risks of loss or damage to the Products or any other Contractual Item
shall be transferred from the Supplier to the Customer on FOB basis, unless
otherwise agreed to by the Parties in writing.

10.4 In the event of loss or defect of a Product, prior to the transfer of risk
of loss and damage in accordance with this article, the Supplier shall be
required to replace it with a new one, at its own expenses.

ARTICLE 11 QUALITY ASSURANCE

11.1 The Supplier is ISO 9001 certified and during the implementation of the
Agreement shall implement a quality assurance system.

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11.2 The Contractual Items shall be accompanied at the time of their delivery by
a Certificate of Conformance to the requirements of the Agreement, which will be
issued and signed by the Supplier.

11.3 All quality assurance certificates related to the Contractual Items shall
be in accordance with the Quality Plan. The aforementioned certificates shall
certify that the Supplier is in conformance with the requirements of contractual
terms and the specifications in accordance with ISO 9001.

11.4 All equipment, material and supplies provided under this Agreement shall be
inspected and tested by representatives designated by Supplier to the extent
reasonably practical to assure that the quality of the equipment, materials and
supplies being incorporated, is sufficient to realize the System Acceptance Test
criteria. The inspection and test program established for such equipment,
materials and supplies shall be consistent with the commercial practices
normally employed by Supplier in the construction of System.

11.5 Factory Acceptance Test (FAT) by the Customer may be conducted at the
Supplier's premises at least 30 calendar days prior to the shipment of the
equipment. The schedule and procedure shall be presented to the Customer in due
course. At the time of FAT, all the test data for each equipment or Product
shall be presented to the Customer or its representatives. The foregoing shall
not be construed as limiting any of the Supplier's obligations under this
Agreement.

ARTICLE 12 WARRANTY

12.1 The Supplier shall provide, for the Products a warranty for a period of one
(1) year from the Handover Date. The spare parts for each Phase are listed in
Annex I.

12.2 In the event that, during the warranty period, any Defect of material may
appear, which is capable of affecting the operation of the System by the
Customer, and for which Defect the Supplier is responsible in accordance with
the terms and conditions of this Article, the following shall apply:

a. The Customer shall send the defective Product/part to the Supplier. The
Supplier shall repair or replace the defective material and send it back to the
Customer. All transportation, packaging and any custom duties costs shall be
borne by the Supplier, provided that the defect of Product/part is not caused by
any as specified in Article 12.6.

b. The Supplier shall apply the warranty period in Article 12.1 for the any
replacement by a new one from the date the Customer receives the replaced
material. The warranty period for any repaired and/or returned material shall be
extended for the repairing period.

12.3 Throughout the warranty period, the following must be observed:

a. The notification of the Supplier by the Customer, for any appearance of
material defect which is covered by this warranty, by sending a written Event
Report to the Supplier immediately after the defect's detection.

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b. The obligation of the Customer to avoid further use of the defective item
immediately after the defect's detection, in order to avoid further damage to
the related System.

c. The compliance with the Supplier's written and/or oral, directions for the
measures the Customer must take until operations are restored, in accordance
with the specifications.

12.4 Ownership of every item replaced in accordance with the terms of the
Warranty shall be transferred to the Supplier. Every item repaired within the
frame of the warranty shall be covered under the warranty until its extension in
accordance with Article 12.2(b).

12.5 The Products shall be stored, used, tested/ inspected and placed in
operation in accordance with the Technical Manuals and all other written
instructions issued by the Supplier.

12.6 The Warranty provided by the Supplier shall not cover defects resulting
from:

a. Damages or malfunctions caused by the use of unauthorized individuals, bad
use or non compliance or non-conformity with the Supplier's written directions.

b. Damages or malfunctions caused by:

(1) Electric power overload, fire, (excluding fire caused by defect of material)
and / or force majeure,

(2) Accidents (except for accidents caused by defects of material),

(3) Improper storage,

(4) Products from which the manufacturer's serial numbers have been removed, or,

(5) Products that have been opened or dissembled by the Customer, without the
Supplier's authorization for such action.

(6) Normal wear or tear.

(7) Vandalism or other criminal activity of third parties.

12.7 This warranty also covers the cost of parts, materials, and mechanical
parts which have suffered damages of any nature exclusively due to the defective
Contractual Item, and which damage was notified to the Supplier in a timely
manner, so that the System may be returned to a state of full and proper
operation. The Spare Parts which will be kept at the Customer's premises are
recommended and listed in Annex I.

12.8 Warranty Bond

On the Handover Date for each Phase the Supplier shall provide a Warranty Bond
in the face amount equal to the ten (10) percent of the amount of the Contract
Price (less licensing fee) for each Phase. If the Supplier cannot perform the
obligations specified in this Article, the Warranty Bond shall be withdrawn from
the bank as specified in Appendix C of Annex II and shall be used for the
replenishment of any damage, loss, costs and expenses incurred or suffered by
the

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Customer due to the Supplier's failure to perform its warranty obligation(s).
The Warranty Bond shall expire at the end of the warranty period.

ARTICLE 13 MAINTENANCE

The Supplier shall provide to the Customer the Maintenance Services (maintain
the System) up to Handover Date (one. month after the Final Acceptance
Certificate is issued), according to the terms and conditions stated in Annex I.
After the above period, the Parties shall negotiate the terms of a separate
Maintenance Agreement.

ARTICLE 14 TRAINING

14.1 The Supplier is obliged to provide training in accordance with this
Article, and Annex I to the trainees of the Customer in the use and operation of
the System.

14.2. The Customer, in order to facilitate the Supplier to fulfill its training
obligation as defined in Article 14.1 above and in Annex I, agrees to provide to
the Supplier the following services under the terms and conditions defined
hereinbelow:

14.2.1 The Customer shall designate the personnel to be trained by the Supplier.
The training shall be in the English language to the Customer's designated
trainees as set forth in Annex I. The training material which shall be free of
charge and used during the training shall be in the English language.

14.2.2 The Supplier shall supply a training facility in Israel free of charge as
required, in accordance with Annex I.

14.3 Following the training to be provided by the Supplier to the personnel
designated by the Customer, the latter will train the all of his additional
employees.

14.4 The personnel designated by the Customer to act as instructors (after their
training) will have the responsibility to translate the training material to the
Korean language. English versions of the training material will be provided to
the trainees with the English one being the official.

14.5 The Supplier shall, at the end of each training course, provide a
Certificate of Successful Completion of Training to each trainee who
successfully completes the training course.

ARTICLE 15 INSURANCE

15.1 Notwithstanding any provision contained herein, any Party and its
employees, agents, representatives, consultants, subcontractors and suppliers,
are not insured by the other Party, and are not covered under any policy of
insurance that the other Party has obtained or has in place.

15.2 The Contractual Items shall be insured against loss and damage during
transportation, at the Customer's cost, for their full contract value. This
insurance shall cover all risks relative to the nature of the goods, including,
without limiting the generality of the foregoing, war, strikes.

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15.3 For the implementation of this Agreement, every Party and its
subcontractors shall have insurance coverage against general risks and civil
liability, which they usually conclude for their own protection. In addition,
they shall maintain the aforementioned insurance coverage in force until the
Handover Date.

ARTICLE 16 INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS

16.1 Indemnity

Subject to Article 16.3 below, the Supplier will defend, indemnify and hold
harmless the Customer, and its directors, officers, employees and agents, from
and against any and all Intellectual Property Rights claims, demands,
liabilities, actions, suits, proceedings (including reasonable attorneys' fees)
asserted by a third party arising out of or relating to, the Supplier's
performance or System or Contractual Items based upon Ituran Technologies under
this Agreement, and the Supplier agrees to undertake the cost of defending the
same, and will pay resulting costs and damages finally awarded, provided that:

16.1.1 The Customer promptly notifies the Supplier of the claim;

16.1.2 The Customer cooperates with the Supplier in the defense, provided that
the Supplier reimburses the Customer for its reasonable out-of-pocket expenses
(including reasonable outside counsel legal fees) associated with such
cooperation; and

16.1.3 The Supplier has sole control of the defense and all related settlement
negotiations, using counsel reasonably satisfactory to the Customer.

16.2 The Supplier's Obligations Regarding Infringement Claims.

The Supplier represents and warrants to the Customer that as of the Effective
Date it has not been notified of any claim that the Supplier's use of the System
violates the legally protected trade secret, proprietary right or other interest
of a third party, or infringes a patent, copyright or other intellectual
property right of a third party (a "Third Party Infringement Claim").

16.3 Third Party Infringement Claims.

If a Third Party Infringement Claim occurs as described in Article 16.1 above
with respect to one or more elements of the System, or in the Supplier's opinion
is likely to occur, the Supplier will use reasonable efforts, at its option and
expense, either to challenge such Third Party Infringement Claim or otherwise
procure for the Customer the right to continue to use, maintain and provide
support for the System, or to replace or modify the alleged infringing element
so that such element becomes non-infringing, provided that such replacement or
modification does not materially affect performance of the System and shall not
be prejudicial to the right of the Customer under Article 16.1.

ARTICLE 17 PROGRESS REVIEWS - MONITORING OF THE IMPLEMENTATION OF THE AGREEMENT

PROGRESS REVIEWS

17.1 The Supplier shall meet with the Customer to review the progress of the
Agreement implementation. The scheduled meetings shall be a means of
communication with the Customer

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to examine the agenda issues which have been agreed upon or those for which the
Customer shall be required to be briefed on from time to time.

17.2 The Supplier shall submit specific issues of the agenda prior to the
scheduled review meeting. The Agenda issues shall cover, inductively, but not
limited to, issues of the development for specific Contractual Items, design and
production reviews, modifications, contractual and logistics issues, possibly
requested tests, financial issues and deliveries. The Customer must respond
within 15 calendar days from receipt of the aforementioned issues. The Customer
may request modifications and/or additional items to be discussed, so that the
scheduled agenda shall include other issues under the condition that these
changes are included in the object of this Agreement.

17.3 The specific meeting dates and the location of the meetings shall be agreed
upon between the Parties.

MONITORING OF THE IMPLEMENTATION OF THE AGREEMENT

17.4 The representatives of each Party shall adhere to the regulations and
limitations imposed by the other Party at the facilities where they shall be
housed or in the locations they shall visit.

17.5 Under the terms and conditions of the above paragraph, the Supplier shall
ensure that the Customer's representative will have access to all locations
related to the production, use and testing, performance use and testing, and the
completion, verification and quality control of the System. The Customer shall
notify the Supplier 14 calendar days in advance, regarding the visits of the
Customer's representatives and shall inform the Supplier of the number and
identities of the representatives, the purpose of the visit. The visit shall
take place during business hours. The Customer's representatives shall avoid all
acts which may hinder the smooth operation of the facilities.

ARTICLE 18 WAIVER OF RIGHTS

18.1 The waiver or the non exercise of any term of this Agreement by either of
the Parties shall not constitute a waiver of any of the rights of the said
Party. Such resignation shall be valid only if it is agreed upon in writing
between both Parties, in accordance with Article 40.

18.2 Failure or omission of either of the two Parties to impose upon the other
Party, at anytime, the application of the provisions of this Agreement or to
exercise any right provided by this Agreement shall not be interpreted as being
a present or future resignation from these provisions or rights and shall not
affect the existence/validity, enforcement of the Agreement.

18.3 The explicit resignation of any of the Parties from any of the rights
resulting from any Article or any provision contained in this document, does not
constitute a waiver/ resignation from any future right or obligation in
accordance with this Article or provision, or waiver/ resignation from any other
right which derives from any term of this Agreement, unless it has been agreed
otherwise between both Parties.

18.4 Any omission by the either Party to immediately claim any indemnification
from the other Party for any damage, costs or other expenses that will be paid
by it for the other Party's account,

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Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

shall not constitute resignation of the Party from its right to claim
indemnification for the damages, costs or other expenses and the Party has the
right to claim the aforementioned indemnification at any time, in accordance
with this Agreement.

ARTICLE 19 LOCAL LICENSES, PERMITS AND APPROVALS

The Customer will be responsible to procure the Business License, Spectrum
License, any Local Licenses and permits necessary to establish and operate the
System in the Territory. The Customer shall be responsible to obtain any other
licenses, permits and approvals necessary for the Supplier to perform its
contractual obligations, including any and all permits and approvals related to
the Supplier's and its subcontractors personnel, such as security provision
requirements, visas, work and residence permits if required, etc. Without
derogating from the above, the Customer shall assist and support the Supplier
and shall use its best efforts to arrange for the residence permits as well as
for the necessary work permits for the Supplier's personnel. With respect to the
application by the Customer for the Type Approval of end user terminal and Base
station equipment which is mandatory by the Korean governmental law, the
Supplier shall co-operate diligently with the Customer for the application.

For the above purposes, the Supplier shall make its best efforts, including
business and technical supports, to assist the Customer for the Term including
but not limited to the period from the signing of this Agreement and the
Customer's obtainment of the Business License from the Korean Government.

ARTICLE 20 COMPLIANCE WITH LAWS

20.1 The Parties specifically acknowledge that each of them and their respective
supplier's employees, agents, subcontractors, and consultants shall conduct
business within the letter and spirit of all applicable laws and regulations.

20.2 Should either Party be found to be non-compliant with any of the provisions
of the aforementioned laws; as well as of Article 19, such Party shall indemnify
the other Party for any penalty, loss or expenses incurred by the other Party as
a result of the defaulting Party's breach of any of its obligations under this
Article.

20.3 Each Party is responsible for the supervision and safety of its personnel
and the personnel of its subcontractors/suppliers. All delivered products, work
or services provided or performed under this Agreement by each Party shall be
safe for all uses contemplated by the present Agreement. The Customer is
responsible for the supervision and safety of its personnel and the personnel of
its subcontractors/suppliers.

ARTICLE 21 GOVERNING LAW / ARBITRATION

21.1 This Agreement shall be governed by and construed in accordance with the
laws of the state of New York, USA (LAW) without regard to its conflict or
choice of law provisions. This Agreement and all related correspondence shall be
written in the English language, which shall take precedence over any
translation.

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Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

21.2 Any dispute arising out of or in connection with this Agreement, including
its existence, validity or termination, shall be handled in accordance with the
following process:

21.3 The Customer and the Supplier's in-country Representative as specified in
Articles 27 and 34 shall agree to enter into negotiations to resolve such
dispute. Both parties agree to negotiate in good faith to reach a mutually
agreeable settlement within a reasonable amount of time. If after a period of
twenty (20) calendar days the dispute remains unresolved, it shall then be
solely and finally settled by binding arbitration under the Rules of
Conciliation and Arbitration of the International Chamber of Commerce (ICC),
which rules are deemed to be incorporated by reference into this article. The
tribunal shall consist of three (3) arbitrators appointed pursuant to the rules
of the ICC and as follows: one arbitrator shall be appointed by the Customer,
one by the Supplier. The third arbitrator shall be appointed by the other two
arbitrators and shall be the president of the tribunal. The place of the
arbitration shall be the state of New York, USA. The English language shall be
used throughout the arbitral proceedings. The judgment rendered by the
arbitrators upon the award shall be final and binding upon the Parties and may
be submitted in any court having jurisdiction for the purposes of obtaining an
order of enforcement or judicial acceptance of the award, as the case may be.

21.4 The Parties shall not be entitled for any reason whatsoever, to stop the
implementation of this Agreement or/ and any of the obligations hereto. As an
exception to the aforementioned, in the event that the Customer delays the
payment to the Supplier of any overdue amount of the Price, for a period which
is longer than fourteen (14) days from the date that this amount became due and
payable in accordance with the terms and conditions of this Agreement, then the
Supplier shall have the right to stop the implementation of its obligations
until the date that the Customer will fulfill its respective obligation for
payment.

ARTICLE 22 LIMITATION OF LIABILITY EXCUSABLE DELAY

22.1 Aggregate Liability

Irrespective of the number of claims and the basis of such claims, the maximum
aggregate liability of either Party in connection with this Agreement for any
direct damages or losses, whether such claim arises in contract, tort or
otherwise, shall not exceed a sum equal to the amounts actually paid by the
Customer to the Supplier in terms of this Agreement with the addition of ten
(10) percent of the above sum. In addition, this limitation shall not apply to
any claims as a result of a Party's breach of its obligations with regard to the
other Party's intellectual property rights, in which case Section 16 shall be
applied.

22.2 Sole Liability

Either Party's (and its suppliers') obligations and liability under this Article
and this Agreement shall be either Party's sole obligations and liability to the
other Party and any third party and the Party's exclusive remedy, and the other
Party shall have no other liability whatsoever.

22.3 Excusable Delay

The liability do not apply when the Supplier is unable to complete or is late in
fulfilling its contractual obligations towards the Customer exclusively and
solely as a result of the culpable ("ipetia siberifora") behavior of the
Customer or of any of the Customer's subcontractors and/or the culpable failure
of fulfillment of the Customer's responsibilities in accordance with this

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Agreement, or due to reasons of force majeure in accordance with Article 24
hereto ("Excusable Delay"), nevertheless the Parties will make their best
efforts to retain the time schedule and meet the program milestones. In cases of
excusable delays, the Customer will hold the Supplier harmless from damages and
shall not impose penalties to the Supplier.

ARTICLE 23 ASSIGNMENT OF RIGHTS AND OBLIGATIONS

Neither Party shall assign or transfer its rights or obligation under this
Agreement, in whole or in part, to a third party without the prior written
consent of the other Party. Provided, however, that Customer may at any time at
sole discretion of Customer, transfer or assign, subject always to this
Agreement and the provisions hereof, in part or in whole, the benefit of this
Agreement to any other assignee or transferee provided the same is a responsible
solvent and competent party and able to carry out and perform the provisions of
this Agreement to be performed or observed by Customer, and is not a competitor
of Supplier, and whose normal place of business is located in the Territory. It
is agreed that all the rights and obligations of the Customer shall be
automatically transferred to and assumed by the Operation Company, tentatively
named as "KLIC" (Korea Location-based Information and Communication Company
Ltd.) which will be established at the initiative of the Customer in accordance
with the Korean government business license; and in such event the Customer
shall be discharged entirely from any obligation under this Agreement, provided
that the Operation Company shall formally accept all the rights and obligations
of the Customer under this Agreement in written form. In the event the Customer
and the Operation Company agree upon the sublicense of the rights, in whole or
in part, granted to the Customer under this Agreement in lieu of the assignment
of this Agreement (as prescribed above), the Customer may sublicense its rights
granted under the Agreement, in whole or in part, to the Operation Company, at
its sole discretion without any approval of the Supplier but subject to the
timely notification of such sublicensing to the Supplier. In case of such
sublicensing, any references to the Customer in the Agreement shall be deemed as
inclusive of the Operation Company as the sublicensee of the Customer, provided
that the Operation Company has formally agreed to this in written form;
provided, always, that the Customer shall be fully responsible for the breach
of, or deviation from, this Agreement by the Operation Company (as the
sublicensee).

ARTICLE 24 FORCE MAJEURE

24.1 If either Party, due to reasons of force majeure, is not able to fulfill
its contractual obligations, and particularly to deliver the Contractual Items
within the time limits specified in Article 10 - "Delivery- Acceptance - Risk of
Loss or Damage" then the time limits for the fulfillment of its obligations and
for the delivery of the Contractual Items shall be extended for a time period
equal to the duration of the event which constitutes Force Majeure and of its
results, without imposing any applicable sanctions, under the condition that the
Supplier shall act as specified in the following paragraphs of this Article.

24.2 The proof of the event which constitutes Force Majeure and the duration of
its results, as well as the size of the negative implications of the occurring
of such an event to the smooth implementation of this Agreement, shall be the
responsibility of the Party appealing a Force Majeure event, who shall be
obliged to submit to the other Party a notification together with the proper
documents issued by the competent authorities, as the case maybe, within, at the
latest, thirty (30) calendar days from the time the Force Majeure event
occurred, while, in the event that

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they are continuous, the Party appealing a Force Majeure event shall within the
same time period, specify their estimated end if possible.

24.3 Taking into consideration the special conditions of the implementation of
this Agreement, Force Majeure Events shall be deemed only those which: a) are
beyond the control of the Party suffering the events, b) they take place without
being caused by such Party's culpability, c) hinder this Party from fulfilling
its obligations despite the reasonable attempts to implement alternative means
and ways for this fulfillment. The following events shall be considered to
constitute Force Majeure, under the aforementioned conditions:

24.3.1 Destructive fires, floods, earthquakes or other natural disasters.

24.3.2 Generalized war that hinders specifically the implementation of the
Agreement.

24.3.3 Embargo or accidents that influence the transportation and delivery of
the Contractual Items.

24.3.4 Political upheaval, terrorist acts, vandalism and sabotage.

24.3.5 Interruption of power supply and other utilities or verified machinery
damage.

24.3.6 General or partial strike, declared by the legally recognized unions, at
the Supplier's facilities.

24.3.7 The announcement by the foreign affairs ministry, which on whatever
reason warn, or limits or forbids one side to travel to the other Party state.

24.4 The forgoing Force Majeure shall not be applicable to the granting and
validity of the Radio Location System License and any other matters as
contemplated in Article 4 and Extension of Business as contemplated in Article
30.

24.5 If the Parties do not agree as to the characterization of events as
constituting force majeure and / or as to their consequences to the inability of
the Party who pleads them for the nonfulfillment of its contractual obligations,
the provisions of Article 21 ("Governing Law / Arbitration") shall apply. No
Party shall unjustifiably refuse, the acceptance of a proven event of Force
Majeure.

The Party that will have been notified regarding the occurring of an event
constituting Force Majeure is obliged, within eight (8) calendar days after
receiving the information documenting the event which constitutes Force Majeure,
to notify the other Party in writing, of its acceptance or refusal to accept
that the event constitutes force majeure; otherwise, the event and its
consequences shall be considered accepted.

24.6 The Party appealing a force majeure event, shall continue to perform the
part of its contractual obligations which is not affected by the force majeure
event and shall make all reasonable efforts in order to minimize the negative
impact of this event in the fulfillment of its obligations. After the occurring
of the force majeure event, the implementation of this Agreement shall continue
in the most beneficial manner for both parties. In case that

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modifications are required in the delivery timetable, the payment timetable,
etc. these shall be defined and shall be mutually agreed to within eight (8)
calendar days in accordance with Article 40 "Amendments of the Agreement", from
the time that the affected Party provided written notification that the force
majeure event is terminated.

ARTICLE 25 LOCAL MANUFACTURING AND TECHNOLOGY TRANSFER

25.1 The Parties acknowledge and confirm the need for the Local Manufacturing
and Technology Transfer in accordance with the policy of the Korean Government.

25.2 The Supplier shall supply to the Customer all necessary information and
data for relevant subsystems of the NCC required to enable the Customer to
produce Korean language versions of such software. The Customer must ensure that
all reasonable steps are taken to protect the Supplier's Intellectual Property
rights in the use of such information and data.

25.3 The Parties understand that enough samples of initial quantities for Phase
One, of mobile units and base station systems, at the discretion of the Supplier
for the purpose of initial setup and stabilization of local systems, will be
manufactured in Israel; after which, will be locally manufactured in Korea to
facilitate the delivery and operation and maintenance support, and to minimize
customs duties and any other miscellaneous costs. The local manufacturers, shall
be chosen from the list of candidate companies provided by the Customer and
shall be evaluated and approved by the Supplier. The Supplier shall be
responsible for the Local Manufacturing process and the Customer shall be
constantly updated on the progress and any problems with regard to the Local
Manufacturing process.

25.4 The System, including without limitation the mobile units and Base Station
systems manufactured locally, shall be guaranteed by the Supplier

25.5 Further Development

It is acknowledged that the Customer desires that the Supplier shall expedite
its current miniaturization plan for the mobile units (2 ASICs - digital and RF)
preferably with the target to start testing of the prototypes in December, 2004
with mass production starting in the third quarter of 2005. The schedule of
supply of Korean version of the mobile units, based on the above ASICs, will be
agreed upon between the Parties. The Parties agree that the mass production of
base stations and handsets for Korean and other markets in the Region shall be
done in Korea, under mutual agreement between the Parties. The Parties further
agree that the mobile units should be continuously miniaturized after the
initial plan described above so that the mobile units can be ultimately
integrated into mobile and stationary assets, and any other applications. The
terms and conditions for further development and improvement of Base Station
system and mobile units shall be mutually discussed and agreed between the
Parties.

25.6 Procurement for the Standard. Equipment

The Parties agree that the Standard Equipment (equipment which is readily
available from different vendors) can be procured directly from local
manufacturing companies who will be elected by the Customer in accordance with
the specifications provided by the Supplier, provided that the performance of
such standard equipment shall not be detrimental to the total system guarantee
by the Supplier.

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25.7 Supply of the Supplier's Software

25.7.1 From the commencement Date and prior to the Handover Date, the Supplier
will have the following obligations to the Customer, as specified in paragraphs
12 and 13 of Annex I of this Agreement:

a. Supply the Supplier's software required to operate the System provided by the
Supplier;

b. Supply the Supplier's software required to operate the Customer's fleet
management system at the cost as specified in Annex III upon the Customer's
request.

c. Provide necessary training in the System as described in paragraph 3.3 of
Annex I to enable the Customer's personnel to operate fleet management system
and to assist the Customer in the marketing of the Products and Services and
render maintenance.

25.7.2 Except as otherwise provided in this Agreement, the Supplier shall supply
the Supplier's software to the Customer on the terms and conditions set out in
Annex I. From the Handover Date, the Supplier will, at the Customer's request
and the Customer's expense:

a. Provide additional training to the Customer;

b. Provide the Supplier's software and infrastructure hardware support not
included in Annex I.

25.7.3 From the Handover Date the Supplier will at the Customer's request
undertake development work requested by the Customer not otherwise specified in
this Agreement, on fair commercial terms and providing such development is
consistent with the Supplier's overall development strategy and resource
availability.

ARTICLE 26 SUCCESSORS

This Agreement shall inure to the benefit of, and shall be binding upon the
Parties hereto and their successors, and legal representatives.

ARTICLE 27 TECHNICAL AND CONTRACTUAL REPRESENTATIVES

27.1 The Parties shall designate and notify in writing to the other Party
technical and contractual authorized representatives.

27.2 All communications shall be in English. Communications that could affect
the Agreement's Price, schedules, statement of work, or these terms and
conditions shall be made only with the authorized contractual representatives
noted above. No changes to this Agreement shall be binding upon either Party
unless incorporated in a written modification to the Agreement and signed by the
contractual representatives of both Parties.

ARTICLE 28 COOPERATION

Each Party and their respective employees, agents, subcontractors, vendors and
consultants shall fully cooperate and not interfere with the performance of
employees, agents, other

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Vision Plant Inc.           CONTRACT NO: LSA 20040831   Telematics Wireless Ltd.

subcontractors, vendors or consultants of other persons or entities working for
the implementation of the System. Each Party shall be fully responsible for any
breach of this Agreement attributable to the fault of its subcontractors.

ARTICLE 29 RELATIONSHIP OF PARTIES

The Parties and their respective subcontractors are independent contractors and
nothing contained in this Agreement shall be deemed or construed to create a
partnership, joint venture, or other relationship other than that of the
Supplier and the Customer or those mentioned in any other Agreement between the
Parties. Each Party will be solely responsible for payment of all compensation
owed to its employees, its subcontractors as well as employment related taxes
and for the performance of the works by its subcontractors.

ARTICLE 30 EXTENSION OF BUSINESS

It is agreed that, for the purpose of securing mutual benefits, the Customer
will be authorized to explore potential business opportunities based on the
Ituran Technologies in the Region by means of equity investment, joint venture
or the license of Ituran Technologies on behalf of the Supplier and/or Ituran.

More specifically, the Customer will be authorized to perform the following:

a. To search for any potential investor(s) or licensee for the engagement in
System business in a country within the Region;

b. To introduce, present and promote to such potential investor(s) or licensee
major aspects of the Supplier's Technologies and the Systems;

and

c. To establish certain terms and conditions related to the creation,
performance, development and expansion of any potential business with such
investor(s).

It is also acknowledged that the Customer will have the first right of refusal
for the System in the Region and confirmed that all potential deals and terms
and conditions are subject to the prior consent of the Supplier.

ARTICLE 31 CONFIDENTIALITY

31.1 All information obtained by the Customer and the Supplier relative to the
Supplier or the Customer, for or in connection with this Agreement, including
but not limited to information obtained during proposal and pre-proposal efforts
and Agreement negotiations, site visits and meetings shall be considered
confidential. Accordingly, each Party agrees that it will not disclose to any
person such confidential information unless that person has a need to know for
the implementation of this Agreement, and is bound by confidentiality
obligations consistent with those in this Article. Further, each party shall use
confidential information solely for the performance of this Agreement and for no
other purpose. Confidential information shall include, but not be limited to,
the features of any equipment, tools, gauges, patterns, designs, drawings,

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specifications, engineering data or other technical, financial, business, or
proprietary information furnished by or relating to the Supplier or the
Customer. Each Party also agrees to abide by any restrictive legends placed on
such information. Upon completion or termination of this Agreement, each Party
shall return all such information to its owner or make such other disposition
thereof as may be directed or approved by such party.

31.2 The Parties may be required to disclose certain information in order to
acquire certain approvals required by each Party's Government or under any law.
Such information may include specifications, technical and financial
information, plans, technical reports and other similar information required for
export/import license acquisition. Each Party shall inform the other before
making such disclosures. Prior to disclosing such information, the disclosing
Party shall notify the receiving party in writing, or by appropriate markings on
the documents, that the information is confidential, proprietary, or for "strict
official use," as applicable. Proprietary or confidential information shall not
include information which, at the date of signature hereof, or thereafter (i)
becomes public domain, by no fault of either Party, (ii) is known to each Party
prior to being disclosed by the other Party (iii) is developed independently by
each Party (iv) becomes generally known in the industry to which it pertains, or
(v) is legally obtained by each Party at anytime from other sources who are not
subject to proprietary restrictions. The Party shall have the burden of proof in
establishing any of the above mentioned exceptions.

31.3 Any Party may disclose any information, required by any law.

31.4 Similarly, it may be necessary to disclose certain information to the
subcontractors and suppliers of each Party for the performance of the Agreement.
In that case also, each Party shall observe the same restrictions as described
above. In addition, each Party shall execute with such subcontractors and
suppliers a non-disclosure Agreement with terms consistent with this Article.

ARTICLE 32 INTELLECTUAL PROPERTY, OWNERSHIP, PATENTS

32.1 The Supplier agrees to pay all license fees owed by the Supplier to any
third party by reason of performance of the Supplier on this Agreement. The
Customer agrees to pay all license fees owed by the Customer to any third party
by reason of performance of the Customer on this Agreement.

32.2 The Supplier and the Customer shall each retain ownership of, and all
right, title and interest in and to, their respective, pre-existing technology.
For matter of clarity, all trademarks, trade names, copyrights, patents and
other intellectual property rights used or embodied in or in connection with the
Contractual Items developed by the Supplier, and all documentation and manuals
relating thereto shall be and remain the sole property of Supplier, and Customer
shall not during or at any time after the expiry or termination of this
Agreement in any way question or dispute the ownership by the Supplier of any
such rights.

32.3 Licenses and Technical Documentation.

a. The Supplier grants the licenses to the Customer for the technology as set
forth in Article 4. Such licenses shall be non transferable except as specified
in Article 23. The intellectual property rights associated with such licenses
shall be owned by the Supplier or the Supplier's subcontractors and suppliers.
The licenses are granted in this Agreement for use by the

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Customer or any permitted assignee. The licenses shall not grant the right to
reverse engineering, copy, manufacture or reproduce any of the Contractual Items
delivered hereunder by the Supplier.

b. All of the documentation provided to the Customer and in accordance with this
Agreement shall be complete and shall correspond to the most current version of
the accompanying products as they have been delivered to the Customer.

ARTICLE 33 PUBLICITY AND DISCLOSURE

Neither Party shall use the name or logo of the other Party in any news release,
public announcement, advertisement or other from of publicity, or disclose any
of the terms or subject matter of this Agreement to any third party except as
may be required by the law and for the performance of this Agreement, without
securing the prior written consent for the other party's Contractual
Representative.

ARTICLE 34 NOTICE

Any notice to be given hereunder by either Party to the other shall be in
writing and signed by an authorized representative in the English language and
shall be deemed received when delivered by confirmed facsimile or recognized
courier. The Parties agree that notices delivered orally, or by electronic mail
on the Internet or by intranet, do not constitute official, enforceable notices
under this Article. Notices to the Customer shall be addressed to:

VISION PLANT INC.

13th FL., Sewoo Building
837-12, Youksam-Dong
Kangnam-Ku, Seoul, Korea
Tel: +82-2-508-0010
Fax: +82-2-508-0062
Attn: Chief Technology Officer

Notices to the Supplier shall be addressed to:

TELEMATICS WIRELESS LTD

26 Hamelacha St., Holon, Israel
Tel: +972-3-5575757
Fax: +972-3-5575703
Attn: Vice President of Marketing

If either Party changes its address or facsimile number (or any part thereof)
during the Term, it shall so advise the other Party in writing. Any notice
thereafter required to be given shall be sent by a recognized courier or fax to
such new address or to the new or revised facsimile number.

ARTICLE 35 LIABILITY

IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY DAMAGES OR FOR ANY
LOST REVENUES, LOST PROFITS, OR OTHER, INDIRECT,

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SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES CAUSED, IN WHOLE OR IN
PART, BY THE LICENSING, USE OR SALE OF THE SYSTEM OR ANY PART THEREOF,
INCLUDING, BUT NOT LIMITED TO, ANY LICENSE OR OTHERWISE ARISING OUT OF OR
RELATING TO THIS AGREEMENT. NOTHING IN THIS ARTICLE SHALL RELIEVE THE CUSTOMER
OF ANY OBLIGATION TO PAY TO THE SUPPLIER AMOUNTS DUE AND OWING UNDER THIS
AGREEMENT AND DEVELOPMENT, TRAINING AND SUPPORT CHARGES UNDER THIS AGREEMENT.

ARTICLE 36 TERMINATION

36.1 The Customer may, by written notice of default to the Supplier, terminate
the whole or any art of this Agreement, in any one of the following
circumstances:

a. The Supplier fails for reasons due to his liable behavior to make delivery of
the Contractual Items within ninety (90) days after the each Milestone date set
forth in paragraph 3.2 of Annex I or any extension thereof due to Force Majeure
reasons or any extension due to Excusable Delay, as defined in Article 22.3 of
this Agreement; or

b. The Supplier fails for reasons due to his liable behavior to perform any of
its material contractual obligations, according to the principles of good faith,
despite the fact that it has been notified by the Customer in accordance with
Article 36.2; or

c. The Supplier becomes insolvent or the subject of proceedings under any law
relating to the relief of debtors or admits in writing its inability to pay its
debts as they become due.

36.2 Procedure for Termination

If one or more reasons stated in Article 36.1 hereinabove occurs, the following
procedure shall apply:

Termination by the Customer

a. The Customer shall send written notification to the Supplier regarding the
Customer's intent to declare this Agreement terminated, indicating the specific
breach of the Supplier's contractual obligation and requesting the Supplier to
take any action or actions necessary to remedy the situation.

b. The Supplier shall have the obligation to remedy the breach within ninety
(90) calendar days from the date the written notification was received, or, if
the breach for which the Supplier is responsible cannot be remedied within
ninety (90) calendar days, the Supplier shall have the obligation to propose a
remedy and timetable for fulfilling the proposed remedy.

c. If the Supplier fails to remedy the violation for which the Supplier is
responsible within ninety (90) calendar days from the time the written notice is
received, or the Supplier fails to propose a remedy and a timetable of
implementation of the proposed remedy within ninety (90) calendar days, the
Customer shall have the right to terminate the Agreement, in whole or in part,
by sending written notification to the Supplier specifying further the reasons
for calling the Agreement terminated and the effective date of the Termination.

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Vision Plant Inc.          CONTRACT NO: LSA 20040831    Telematics Wireless Ltd.

36.3 If this Agreement is so terminated, the Supplier shall be responsible for
the loss and damage of the Customer (including without limitation any amount
paid by the Customer prior to the Termination) attributable to the fault of the
Supplier, always subject to Articles 22.1, 22.2 and 35 above. In case of such
Termination, the Customer shall have the right to withdraw the Performance Bond
as a part of its remedy. In case of the occurrence of delay in excess of ten
(10) percent of the Contract Price for each Phase as contemplated in Article 9.5
above, the right of the Customer to terminate this Agreement pursuant to Article
36.1 and the foregoing obligation of the Supplier shall not be affected by the
Delay Penalty by the Supplier pursuant to Article 9.5 above. Provided, however,
that if, prior to the Termination, the Customer has exercised the option of the
Delay Penalty as specified in Article 9.5, the amount paid by the Supplier to
the Customer as the Delay Penalty shall be deducted from the sum to be paid to
the Customer due to the Termination as described above. Further, the Letter of
Credit shall become no more valid and effective upon the receipt by the issuing
bank of a written notice from the Customer for the Termination of this Agreement
pursuant to Article 36.1 above.

36.4 The Supplier shall continue performance of this Agreement to the extent not
terminated and so requested by the Customer.

36.5 In the event that the Customer terminates the Agreement for Force Majeure,
this Agreement shall be terminated without liability or claims by either party
as a result thereof. The Parties shall settle all open accounts, and the
Supplier shall not be entitled for any reason whatsoever, to claim lost profits
or consequential damages or costs resulting from such termination.

36.6 Termination by the Supplier

The Supplier shall be entitled to terminate this Agreement as stated in Articles
36.1 - 36.5 above, mutatis-mutandis.

36.7 Time Schedules

In a case either Party is in a breach of an obligation, all time schedules shall
be postponed respectively, for the period of the breach.

ARTICLE 37 TECHNICAL DOCUMENTATION (BIBLIOGRAPHY)

37.1 The Supplier shall provide at no separate cost to the Customer, enough
copies of each technical bibliography and -maintenance- training bibliography in
writing and electronic form if possible. The manuals shall accompany all
technical equipment provided, including the manuals of use as well as those of
the management of maintenance of the System. The documentation shall include:

a. Base Station Specifications

b. Base Station Infrastructure Requirements Specifications

c. Vehicle Location Unit Specifications

d. Vehicle Location Unit General Installation Instructions

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Vision Plant Inc.          CONTRACT NO: LSA 20040831    Telematics Wireless Ltd.

e. Personal Location Unit Specifications

f. Fleet Management Post Operating Manual

g. Control Center Diagrams

h. Control Center Infrastructure Requirements Specifications

i. Control Center Operating Procedures

j. VLU and PAL Registration and Activation Procedure

k. System Acceptance Test Procedures

l. Monthly Progress Reports

m. Design Reviews Documentation

n. Project Organization Chart

37.2 All the manuals of operation and other documentation shall be provided in
English language.

37.3 The manuals for standard commercial type (COTS: Commercial Off The Shelf)
shall be delivered in the same form they were created by the manufacturer in
English, provided however this equipment is supplied by Supplier.

37.4 The exact quantities of the bibliography shall be defined in PDR by the
Customer.

37.5 The Technical Documentation to be delivered to the end users shall cover
the operation and the maintenance of the first stage (first line maintenance) of
the System to the extent that is provided in this Agreement.

37.7 The Supplier guarantees the completeness and correctness of the Technical
Documentation to be provided to the Customer.

ARTICLE 38 SEVERABILITY

If any term of this Agreement is held or finally determined to be invalid,
illegal or unenforceable in any respect, in whole or in part, such term shall be
severed from this Agreement, and the Parties shall exercise their best efforts
in order that the remaining terms contained herein shall continue in force and
effect.

ARTICLE 39 INTERPRETATION

The captions and headings used in this Agreement are solely for the convenience
of the Parties, and shall not be used in the interpretation of the text of this
Agreement. Each Party has read and agreed to the specific language of this
Agreement; therefore no conflict, ambiguity or doubtful interpretation shall be
construed against the drafter.

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Vision Plant Inc.          CONTRACT NO: LSA 20040831    Telematics Wireless Ltd.

ARTICLE 40 AMENDMENTS OF THE AGREEMENT

This Agreement may not be modified unless in writing duly executed by the
authorized representatives of both Parties and with specific reference to this
Agreement.

ARTICLE 41 GENERAL TERMS

41.1 The Parties under the Agreements agree that the Supplier and its affiliated
companies shall not engage in any business connections in the Region regarding
the System except through the Customer or related companies that have major
participation from the Customer. The Parties under the Agreement agree that the
Customer and its affiliated companies shall not engage in any business
connections in the Region regarding location based service except through the
Supplier or related companies that have major participation from the Supplier.

41.2 Any future business changes of the Supplier, such as changes in share
holders, any merger with a third party, sale/assignment of entire and material
part of its business and/or assets, and change of names, etc, shall not affect
the full rights enjoyed by the Customer under this Agreement and accordingly any
future business changes of the Customer, such as changes in share holders, any
merger with a third party, sale/assignment of entire and material part of its
business and/or assets, and change of names, etc, shall not affect the full
rights enjoyed by the Supplier under this Agreement.

41.3 In the event that Spare Parts are ordered by the Customer, their prices
shall be as described in Annex III of this Agreement. The specification provided
for the Products apply also to Spare Parts.

ARTICLE 42 CUSTOMER FURNISHED EQUIPMENT - INSTALLATION -INFORMATION - SERVICES

42.1 The Customer shall make available to the Supplier all of the Customer
Furnished Equipment (FE), the Customer Furnished Information (Fl), the Customer
Furnished Installations (FIN) and the Customer Furnished Services (FS) free of
charge, in a timely manner, in accordance with the provisions set forth in
paragraph 11 of Annex I and in general, in such a manner so as not to delay the
time schedule. In the event of any delay, and / or if the FE, the FF, the Fl and
the FS prove not to be in compliance with the requirements of paragraph 11 of
Annex I or it is proven that they are defective or incorrect, the provisions of
Article 22.3 will apply.

42.2 The Supplier shall be responsible for the, Customer Furnished Equipment
(FE), the Customer Furnished Information (Fl), the Customer Furnished
Installations (FIN) and the Customer Furnished Services (FS), for the time that
they shall be in its possession. In the event of expiration or termination of
this Agreement, the Supplier shall be obliged to return them to the Customer,
forthwith, in the good condition that they were provided to it subject to normal
tear and wear.

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Vision Plant Inc.          CONTRACT NO: LSA 20040831    Telematics Wireless Ltd.

ARTICLE 43 ORDER OF PRECEDENCE

This Agreement and all of the Annexes attached hereto are intended to be read
and construed in harmony with each other, but in the event of an inconsistency
or conflict between provisions of this Agreement, the inconsistency or conflict
shall be resolved by giving precedence in the following order:

o In case of inconsistencies between the Articles and the Annexes, the Articles
will prevail for any commercial matters, but for any technical matters Annexes
will prevail.

o In case of inconsistencies between the Annexes and the Appendices, the Annexes
will prevail.

ARTICLE 44 ENTIRE AGREEMENT

This Agreement, including all documents enclosed and signed, shall constitute
the entire Agreement and understanding between the parties hereto and shall
supersede and replace any and all prior or contemporaneous representations,
agreements or understandings of any kind, whether written or oral, relating to
the subject matter hereof.

ARTICLE 45 COSTS

Each Party shall bear its own costs including local stamp duty or other taxes or
levies in relation to the negotiation, preparation and execution of this
Agreement.

ARTICLE 46 LIST OF ANNEXES

The following is the list of Annexes contained in this Agreement

ANNEX I - System Deployment in Korea Statement of Work (SOW)

ANNEX II - Letter of Credit, Performance Bond, Warranty Bond

ANNEX III - Estimated Price and Payment Terms

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Vision Plant Inc.          CONTRACT NO: LSA 20040831    Telematics Wireless Ltd.

In consideration of the mutual obligations assumed under this Agreement, the
Customer and the Supplier agree to this Agreement which is executed by duly
authorized representatives as of the dates below.

AGREED BY:

VISION PLANT INC.                                TELEMATICS WIRELESS LTD.

By:    /s/ Chi Young Kwack                       By:    /s/ Kafry Eddy
       -------------------------------                  ------------------------
Name:  Chi Young Kwack                           Name:  Eddy Kafry
Title: President and CEO                         Title: President and CEO
Date: August 31, 2004                            Date: August 31, 2004

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Vision Plant Inc. Telematics Wireless Ltd.

                                    ANNEX I

                           SYSTEM DEPLOYMENT IN KOREA

                            STATEMENT OF WORK (SOW)

1. GENERAL

This document provides a description of the activities to be carried out by the
Supplier and the Customer as a part of the deployment of Radio Location System
in the Territory, including the responsibilities of each Party.

To insure successful deployment and based on the experience of previous
deployments of this System in other countries, a "Phased" approach is proposed.
It is based on the initial deployment of Phase One System in Seoul metropolitan
and its vicinity areas. Phase One will serve as a basis for the future
deployments, will enable proper adaptation to specific local conditions, to
train local technical and operational personnel and to serve as an initial and
demonstration System for various marketing activities. After completion of Phase
One deployment, its initial trial run and performing all necessary further
modifications and adaptations, further deployment can be commenced. The Phase
One System will also serve as a basis for the System Acceptance Testing, after
successful completion of which the System and the issuance of System Acceptance
Certificate will be officially handed over to the responsibility of the Customer
(or the Operation Company).

The total System shall be guaranteed by the Supplier, provided that the Customer
shall do reasonably best efforts to collaborate with the Supplier.

2. SYSTEM DESCRIPTION

The System for locating vehicles, cargo; people and etc., and exchanging short
messages and receiving alarms is composed of the three following sub-systems:

i. Network Control Center (NCC)

ii. Base Stations

iii. End User Terminal

     o    PAL (Personal Alarm and Locator)

     o    VLU (Vehicle Location Unit)

     o    Transmitter/receiver installed in the cargo, asset or etc.

2.1  NCC

The NCC is usually installed in the same building with other offices of the
Operation Company. The NCC is composed of a number of computer systems with
dedicated software, workstations

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for operators, and communication systems that connect NCC with the Base
Stations. The NCC is the heart of the system, and its availability is of the
utmost importance. NCC's systems have a hot backup and all its infrastructures
(electricity, communication lines, air-conditioning, etc.) are also backed-up. A
general description of the NCC is provided in Appendix E of this Annex. The
Operator Station's language will be both the English language and the Korean
language. The back-office capabilities, including billing are not part of the
proposed System in this Agreement and should be chosen by the Customer based on
the local systems and regulations from local vendors. However, for the
clarification purposes, all the technical supports for the interface of the
capabilities shall be provided by the Supplier.

2.2 BASE STATIONS

The Base Stations are installed in the chosen locations scattered in required
coverage area and constitute receive-only or receive/transmit sites. The Base
Stations include computer-controlled receivers that receive signals from the VLU
or PAL and transfer the information to the NCC via the communication lines for
further processing and display.

Some of the Base Stations are equipped with standard paging transmitters
controlled by special controllers. The transmitters receive the information from
the NCC and transmit it to the VLU or PAL in a synchronized form. These
transmissions serve for synchronization of all active VLUs/PALs and
interrogation of the chosen unit. The transmitters are timed by GPS receivers
installed at the stations.

Some of the Base Stations contain special synchronization transmitters,
responsible for precise calibration of the stations. All of the stations are
equipped with appropriate antennas installed on masts, lightning protection
systems, air-conditioning and UPS systems.

2.3 GENERAL SYSTEM DESCRIPTION

The System and certain equipment and facilities to be provided by the Supplier
shall meet the following specifications:

2.3.1 The System shall be based upon TDOA (Time Difference of Arrival) and DSSS
(Direct Sequence Spread Spectrum) technology for location, messaging and alarm
on the uplink in the direction of mobile unit (end user terminal) to Base
Station, and *** FSK (Frequency Shift Keying) paging transmission technique for
both control signaling and messaging on the downlink in the direction of Base
Station to mobile unit. All the technologies shall be state-of-the-art and
field-proven with commercial and enough billable customers in at least three
other countries.

2.3.2 The System shall be able to support basically TDMA, and CDMA for
additional capacities on the uplink, and FDMA on the downlink.

2.3.3 The System shall operate on the following frequency and channel bandwidth:

i. Uplink: *** channel bandwidth ***

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ii. Downlink: *** allocated channel bandwidth

2.3.4 The chip rate of the Systems shall be *** chips/sec or higher.

2.3.5 Positioning reliability and accuracy for the System shall meet the
following criteria:

i. Service areas

     o    Open area, suburban, dense urban, urban canyon, indoors, underground,
          etc., the specific conditions of which is defined hereinunder

     o    Open area: An area where there is no obstacle like tall trees or
          buildings

     o    Sub-urban: A town scattered with buildings or houses lower than

     o    Urban: A city scattered with buildings or houses (10-15 stories)

     o    Dense Urban: A built-up city crowded with large buildings (higher than
          15 stories)

     o    Urban Canyon: In-between areas of higher than 20-story building

     o    Indoors: Inside building with typical wall substance

     o    Underground: Basement-1 (B-1) or B-2 (when achievable)

ii. Target objectives for positioning reliability and accuracy

     o    Mandatory requirement: *** Mandate (Handset-based)

     o    Best efforts to meet the: ***

iii. Testing and Analysis methods

Tested and averaged with sufficient number of samples on each service areas of
each Phase as specified in paragraph 3 of Appendix D of this Annex.

2.3.6 The mobile unit to be installed in the vehicle will be able to be
interfaced with sensors in the vehicle to deliver the velocity and driving
distance of the vehicle to NCC if necessary or requested.

2.3.7 The System shall meet spurious or unwanted emissions requirements
specified or to be further specified by the Korean government. Paragraph 2.4 of
this Annex are the technical specifications and the spectrum analyzer setting
for the measurement of the technical specifications as the minimum to be met. In
case the Korean Government modifies the specifications, the Customer shall
notify the Supplier of the change, in which case the Supplier shall have the
obligation to meet the reasonably modified specifications.

2.3.8 Broadcasting, multicasting, simulcasting and unicasting of paging
transmissions from NCC to mobile units shall be possible. The paging
transmissions shall perform the

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synchronization of the whole network by the transmission of the synchronization
signal ones every 16 frames. All mobile units as well as base stations receive
the synchronization signal and maintain the TDMA structure based on this. All
paging transmissions and location or message responses from mobile units shall
be synchronized according to this distributed timing.

2.4 DETAILED TECHNICAL SPECIFICATIONS OF THE SYSTEM

2.4.1 Frequency range for the service

i. Base Station to end user terminal ***

ii. End user terminal to Base Station ***

2.4.2 Transmission equipment to be installed at Base Station

i. Emission designation : ***

ii. Output power at the output of paging transmitter : ***

iii. Frequency error : *** of the designated frequency

iv. Occupied bandwidth : ***

v. Spurious emission requirements ***

2.4.3 Transmission at end user terminal

i. Emission designation : ***

ii. Output power (P) at the output of the end user terminal : ***

iii. Frequency error : *** of the designated frequency

iv. Occupied bandwidth : ***

v. Unwanted emissions requirements

     o    The total power of *** RBW (Resolution Bandwidth) range measured at
          the frequency farther than *** from the designated frequency shall
          be at least *** lower than the average power measured at
          the designated frequency.

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     o    The total power of *** RBW measured at the frequency farther

     o    than *** from the designated frequency shall be at least *** lower
          than the average power measured at the designated frequency.

2.4.4 Settings for Spectrum Analyzer for the measurement

i. General requirement

     o    The spectrum analyzer should be capable of the automatic measurement
          of power and occupied bandwidth (*** Series or more advanced)

ii. The power to the antenna measured at the output of paging transmitter

     o    Center frequency : ***

     o    Span : ***

     o    Channel power bandwidth : ***

     o    Average : ***

     o    RBW(Resolution bandwidth), VBW (Videobandwidth), Sweep : ***

iii. Occupied bandwidth

     o    Center frequency : ***

     o    Span : ***

     o    Average : measure more than *** times and averaged

     o    RBW, VBW, Sweep : ***

     o    Measure *** RF energy at the above setting

iv.  Unwanted emissions

     o    Average power of the designated frequency

          o    Center frequency : ***

          o    RBW : ***

          o    VBW, Sweep : ***

          o    Average : measure more than *** times and averaged

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          o    At the above conditions, move the marker at the center frequency
               and measure the level (example : *** )

          o    Average power of the designated frequency ***

     o Average power of the unwanted emissions

          o    Center frequency : ***

          o    RBW : ***

          o    VBW, Sweep: ***

          o    Average : measure more than *** times and averaged

          o    At the above conditions, move the marker at farther than *** from
               the center frequency and measure the level (example: *** ) is not
               applied in this case * (Regulation)]

          o    Average power of the designated frequency - Average power of the
               unwanted emissions = ***

2.4.5 Minimum capacity of location determination

i. *** locations per second per CDMA/FDMA on the uplink

ii. A multiple of "a" shall be achieved with each CDMA application (up to ***
CDMA) for additional capacity.

iii. The detailed procedures for the test shall be provided at PDR.

2.4.6 Transmission rate of short message transmission

i. Uplink : ***

ii. Downlink : up to ***

iii. The detailed procedures for the test shall be provided at PDR.

2.4.7 Minimum receiving sensitivity

i. Uplink (at the receiver of the Base Station)

     o    Location : ***

     o    Messaging : ***

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ii. Downlink (at the end user terminal) : ***

2.4.8. Requirements for end user terminals

The mobile units will have all the functions required for the normal operations
with user interfaces and Base Stations. Particularly, the units will be able to
identify the remaining capacity of the battery and inform the NCC. Other typical
and specific functions shall be provided.

3. SCOPE OF THE WORK

3.1 GENERAL

The number of Base Stations needed for the deployment depends on the size of the
required coverage area and environmental conditions.

It is roughly estimated that the following number of Base Stations will cover
the intended coverage for each Phase as shown in next page. The exact number of
the Base Stations will be determined when the final radio network design is
completed, preferably prior to the Commencement Date.

i. Phase One : *** Base Stations (approximately *** square kilometers)

ii. Phase Two : *** Base Stations (approximately *** square kilometers)

iii. Phase Three : *** Base Stations

[GRAPHIC OMITTED]

Note

1. The coverage in the map is just for illustration purpose and is not on the
same scale for each Phase.

2. Phase One : Seoul metropolitan and its vicinity areas

3. Phase Two : Five (5) other major metropolitan cities

4. Phase Three : Across-the-country coverage including Cheju-Do

Annex I                                                                   Page 7

***   Confidential material redacted and filed separately with the Commission.

Vision Plant Inc.                                       Telematics Wireless Ltd.

3.2 PROJECT MILESTONES

The following are the major milestones of each Phase and their corresponding
completion dates based upon the Commencement Date (CD) of Article 5.5 of this
Agreement:

<TABLE>

------------------------------------------------------------------------------------------
Activity (Completion date)                                  Milestone
------------------------------------------------------------------------------------------

i. Kick-off Meeting.                                        CD + one (1) month
------------------------------------------------------------------------------------------
ii. Preliminary Design Review (PDR) Meeting                 CD + three (3) months
------------------------------------------------------------------------------------------
iii. Handset and Base Station prototype (based on the new   CD + Eight (8) months
miniaturized design)
------------------------------------------------------------------------------------------
iv. Critical Design Review (CDR) Meeting                    CD + eight (8) months
------------------------------------------------------------------------------------------
v. Verification of the technical compliance with the        CD + Nine (9) months Korean
Government's specifications
------------------------------------------------------------------------------------------
vi. Integration and subsystem test                          CD + Nine (9) months
------------------------------------------------------------------------------------------
vii. System test and factory acceptance                     CD + Ten (10) months
------------------------------------------------------------------------------------------
viii. Shipping and delivery                                 CD +Ten and half (10.5) months
------------------------------------------------------------------------------------------
ix. Deployment design, site survey, NCC and sites           CD: Ten and half (10.5) months
construction and preparation (local company)
------------------------------------------------------------------------------------------
x. FAT (On-site installation and test)                      CD + Thirteen (13) months
------------------------------------------------------------------------------------------
xi. Handover Date (Commissioning and trial service)         CD + Fourteen (14) months
------------------------------------------------------------------------------------------
xii. Commercial service                                     CD + Fifteen (15) months
------------------------------------------------------------------------------------------
</TABLE>

It is anticipated that Phase Two will commences six (6) months after the
commencement of Phase One and Phase Three will commence six (6) months after the
commencement of Phase Two.

More detailed plans for each Phase shall be prepared after CD arid following the
preliminary phase of site/field survey, and shall be presented at PDR of Phase
One.

The Customer will have an option at his sole discretion to request a partial
shipment and deployment of the Demonstration System of Phase One that includes
approximately 10 Base Stations and fully functional NCC prior to the shipment of
the rest of remaining Base Stations.

Annex I                                                                   Page 8

Vision Plant Inc.                                       Telematics Wireless Ltd.

In this case the overall deployment schedule of the Phase One will be extended
by up to two months.

3.3 LOCAL ENGINEERING TEAM AND ITS TRAINING

The following is the list of the Customer's technical personnel (local
engineering team) recommended to participate at all the stages of System
deployment. This team will work in parallel with the Supplier team and will be
trained to perform further deployment, technical operation and maintenance of
the System.

i. Engineering Manager

This person will be the technical leader of the Customer's local team members
and will have overall responsibility for all the technical aspects of the
System's operation and support. This should be an electronics engineer,
preferably with wide experience in integration and technical support for large
scale infrastructure-based communications systems (e.g. cellular or paging) and
excellent management skills.

ii. Senior System Engineer

This person will be the manager of the NCC Engineering team. He should be
software engineer with experience in operating systems (e.g. QNX/UNIX) and real
time software.

iii. NCC Engineer

This should be software engineer working under the supervision of Senior System
Engineer.

iv. Base Station Engineer

This person will be responsible for the technical operation and support of Base
Stations. He and his team will actively participate in all the aspects of the
deployment and integration of Base Stations. This should be an electronics
engineer with experience in installation, operation and maintenance of RF,
communications equipment, antennas, modems, interfacing with telecom lines and
power supply infrastructure. Preferably, this person should have an experience
in integration and maintenance of cellular Base stations sites or paging
transmission sites.

v. Base Station Technicians

A few technicians or junior engineers with the experience in installation and
maintenance of cellular or paging sites and working under the supervision of
Base Stations Engineer.

The above team will actively participate in all stages of the deployment process
under the guidance and supervision of the Supplier's personnel. They all
(especially the engineers) must have good knowledge of English language. They
will receive an initial training at Ituran and the Supplier's facilities in
Israel for about two weeks.

Afterwards the team will work together with the Supplier's team in Korea,
continuing its training in OJT form. After the deployment, integration and
initial operation of the Phase One System, the local team will perform further
deployment of both Phase Two and Three in other areas in the Territory, under
the guidance and supervision and "as needed" involvement of the Supplier's team.
In parallel, the local team will prepare the required Installation and operating
instructions in Korean language, based on their training and experience gathered
during the deployment process and the documentation provided by the Supplier.

Annex I                                                                   Page 9

Vision Plant Inc.                                       Telematics Wireless Ltd.

Initial overseas training in Israel will consist of the following as minimum:

Base Station Installation and Maintenance (3 days).

This training aimed at the Customer's field maintenance staff will provide the
skills and information required to allow those staff to set up a Base Station,
to diagnose problems in the operation of a Base Station and to perform field
replacement of failed units.

The training will cover the material presented in the Base Station Maintainer's
Manual and comprise a mixture of presentation material and hands on training.

ii. NCC System Setup and Operation (3 days).

This training aimed at the Customer's operations staff will provide the skills
and information required to configure the data files used by the NCC system, to
customize the operation of the System and to monitor and control the System in
operation.

Training will cover the material presented in the System Software Reference
Manual and the System Console Operator's Manual.

iii. The Customer System Operation (1 day).

This training aimed at the end users of the System will provide the skills and
information required to perform user functions such as tracking, messaging and
alarm monitoring.

Training will cover the material presented in the customer server Operator's
Manual.

iv. End User Terminal Installation (2 days).

This training aimed at installers of terminals will provide the knowledge and
skills required to install the end user terminals in vehicles. The training will
cover the material presented in the Terminal Installation Manual to be provided
by the Supplier.

3.4  EQUIPMENT PURCHASE

The list of the main items required for the deployment of the Base stations and
NCC(s) is provided in the Appendix A of this Annex. This list is subject to
changes according to the specific local requirements. This list is based on the
experience of the Supplier and Ituran in their international deployments. Some
of the standard items mentioned in the list may be obsolete and should be
replaced by the compatible items. The updated purchased list for standard
equipment will be prepared by the Supplier immediately upon the CD. The list
includes recommended quantities for purchase. Exact quantities for maintenance
purposes will be separately agreed upon between the Supplier and the Customer.
The Supplier has the responsibility for special equipment supply. The Customer
will be responsible for the standard equipment supply and may propose
alternative vendors for specific items, equal in performance to the defined
items. The standard equipment items purchased by the Customer must be approved
by the Supplier in advance. Any changes in purchasing must be approved by the
Supplier. The purchased equipment will be shipped to the specific locations as
directed by the Supplier for further integration and installation. The equipment
for the NCC and Base Stations of Phase One will be integrated and tested in
Israel or other places to be agreed by the Parties prior to the shipment to
Korea. The Customer will be responsible for releasing the equipment from Korean
customs and transporting it to the NCC or other sites as required.

Annex I                                                                  Page 10

Vision Plant Inc.                                       Telematics Wireless Ltd.

Equipment "type approval" for the special equipment will be performed in full
coordination between the Supplier and the Customer. The application preparation
and submission will be performed by the Customer and fully supported by the
Supplier.

4. SETTING UP NCC

4.1 INFRASTRUCTURE

The Supplier will prepare the specifications for setting up NCC. The Customer
will choose local contractor(s) or on its own plan and set up infrastructure in
the NCC building in Seoul or other cities for subsequent Phases if necessary,
based on the Supplier's specifications. The infrastructure will permit the
operation of the NCC, including its operation during power failures and partial
malfunction of the air-conditioning. The infrastructure set up will include the
purchase and installation of a generator, UPS, electricity boards and their
integration in the building's electricity system.

Based on the Supplier specifications, the Customer will design and construct the
partitions required for the operation of NCC and the communication room, taking
into consideration all the needs of the Operating Company. A floating floor will
be installed in the NCC and the communication room for the passage of cables. A
platform for the operators will be constructed in the NCC, and contain
furnishings for several operating posts. The Customer will install electricity
and communication sockets underneath the floating floor and along the walls of
the NCC, fluorescent lighting in the ceiling with anti-glare covers. Electricity
boards and carrying equipment of communication to the sites will be installed in
the communication room.

The Customer will design, purchase and install a backed-up air-conditioning
system for the NCC and the communication room.

The Customer will present all plans to the Supplier and, after their approval,
will continue with the implementation stage.

The Customer will ensure that the design and implementation is performed
according to all applicable regulations. The Customer's work will be considered
completed upon full acceptance by the Supplier.

4.2 COMPUTERS AND COMMUNICATION

The Customer will install NCC's and operators' posts equipment in accordance
with specifications and guidelines of the Supplier.

Integration and testing of NCC's equipment will be performed by the Supplier
team together with the Customer Engineering team. Initial integration of the
equipment for the first NCC will be performed in Israel or other place(s) to be
agreed by the Parties with participation of the Customer Engineering team.

Appendix E of this SOW provides general description of the operational NCC.
Digital Mapping Content will be supplied by the Customer according to the
requirements presented in Appendix F

Annex I                                                                  Page 11

Vision Plant Inc.                                       Telematics Wireless Ltd.

of this SOW. In addition, the Customer will supply a DTM file (in known format)
that includes the altitude data for all the required coverage area in a
definition of at least 1 minute.

5. SETTING UP BASE STATIONS

5.1 LOCATING AND PURCHASE OF SITES

Upon completion of the field review by the Supplier's team, the Customer will be
responsible for the location of appropriate sites for Base Stations of each
Phase, on the basis of a primary deployment map and a list of sites that will be
prepared by the Customer and confirmed by the Supplier. This list will be based
on a special analysis using DTM information ("altitude" maps). For each
potential site the Customer will present more than one alternative, stating the
technical and economic advantages and disadvantages of each. Among other issues,
the Customer will check the possibility of long-term rental, access to the site
during all hours, the existence of an appropriate electricity feeding line,
place for a mast (or existence of a usable mast) appropriate grounding, and the
feasibility of obtaining a data line. The Supplier and the Customer engineering
team will verify if there is a risk of possible existence of electro-magnetic
interference from nearby radio equipment of third parties as well as general
level of electro-magnetic noise that may have influence on System sensitivity.
After one of the alternatives has been approved by the Supplier, the Customer
will handle the rental contract and obtain from the municipal or other relevant
authorities all required permits for setting up a Base Station.

5.2. COMMUNICATION LINES

The Customer will order for each site intended for the receiving and
transmission station some of the following communication infrastructures subject
to the discussion with local telecom carrier(s):

i. Two PTP (Point to Point) data lines between the site and the NCC at a rate of
minimum 9.6 Kbps leased lines

ii. ADSL-VPN (up: 640kbps, down 1Mbps)

iii. Two ordinary telephone lines

iv. The possibility of working with a line at a rate of 19.2 Kbps and a
multiplexer unit for two ports will be examined at these sites

5.3 BASE STATION SITE INFRASTRUCTURE

The Supplier will provide the specifications and requirements for the
infrastructure installations at Base Station sites. The Customer will design the
infrastructure for each site intended for Base Station. The Customer will plan
the type and height of the mast (if necessary), the location for the
building/construction (if necessary), the routing of the RF, communication,
power and grounding cables, and submit the design to the Supplier for approval.
The mast will be equipped with a lightning arrester with grounding cable, mast
illumination (if necessary), a cable ladder, and arms appropriate for the
system's antennas. The Customer will submit to the Supplier for approval the
type of the construction, the air conditioning system, the method of deployment
of the communication infrastructure. The construction will contain the antennas
concentrator board for the entry of RF cables, lighting, a smoke/fire sensor, a
standard fire extinguisher and a door-opening sensor.

Annex I                                                                  Page 12

Vision Plant Inc.                                       Telematics Wireless Ltd.

After approval of the plans by the Supplier, the Customer will set up the
infrastructure at the site. This will include the mast and the construction,
installation of RF cables and antennas on the arms, connecting the construction
to the electricity source, the grounding, the communication lines, and the RF.
The Customer will purchase all the needed equipment for the above activities
except antennas.

If necessary, the Customer will design and erect a fence around the station, and
make arrangements with a security company to guard the site.

5.4 GEODETIC MEASUREMENT

At each site the Customer via local contractor, specifically chosen for this
task, will perform geodetic measurements for the placement of the antennas. The
accepted measuring system is Differential GPS. The required precision is +/- a
few tens of centimeters or 1 meter at the worst case.

5.5 INSTALLING A BASE STATION

Upon completion of the infrastructures deployment at the site, the Customer will
transport the Base Stations racks to each site and will put it at the
construction location. The Supplier and the Customer engineering teams will
perform all connections between System's units and the various infrastructures.
The operation of the system at the site shall be performed in accordance with
the guidelines issued by the Supplier.

5.6 INTEGRATION WITH NCC

Integration of Base Stations with NCC will be performed by the Supplier's team
together with the Customer's engineering team. Each Base Station data will be
defined in NCC, including measured location, name, technical profile,
communication lines definitions etc. After verification of proper functioning of
communication lines using test equipment, each Base Station will be connected to
NCC over the designated line.

The System will provide real time information regarding the communication
performance and data validity received from the site.

5.7 ADDITIONAL REQUIREMENTS

In all installation works the Customer will mark all cables with markings to be
agreed upon with the Supplier. The cables will be marked at approximately 3 m
intervals and adjacent to end connectors. Routing of cables serving different
purposes (communication, electricity, grounding, etc.) shall be separated.

The Customer will meet the accepted standards for civil construction, mechanical
work, cabling work, and electrical safety. The Customer will ensure that the
design and implementation is performed according to all applicable regulations.

Annex I                                                                  Page 13

Vision Plant Inc.                                       Telematics Wireless Ltd.

5.8 DETAILED RESPONSIBILITY MATRIX

The following responsibility matrix shall be applied for the deployment of the
System. In the matrix, O indicates a primary responsible Party while 'd'
does a assisting Party. (C: the Customer, S: the Supplier)

5.8.1 BASE STATION

<TABLE>

SYSTEM                 SUBSYSTEM                                            PHASE ONE       PHASE TWO/THREE
--------------------   --------------------------------------------------   ---------       ---------------

                                                                             C     S         C           S
Antenna Installation                          ***                            O    'd'        O          'd'
                                              ***                            O    'd'        O          'd'
                                              ***                            O    'd'        O          'd'
Equipment                                     ***                           'd'    O        'd'          O
                                              ***                           'd'    O        'd'          O
                                              ***                           'd'    O        'd'          O
                                              ***                           'd'    O        'd'          O
                                              ***                            O    'd'        O          'd'
                                              ***                            O    'd'        O
                                              ***                            O    'd'        O
Feeder                                        ***                            O    'd'        O
                                              ***                            O    'd'        O
                                              ***                            O    'd'        O
Cabling                                       ***                            O    'd'        O
</TABLE>

5.8.2  NCC

<TABLE>

SYSTEM                 SUBSYSTEM                                            PHASE ONE   PHASE TWO/THREE
--------------------   --------------------------------------------------   ---------   ---------------

                                              ***                            C     S     C           S
NCC                                           ***                            O    'd'    O
                                              ***                           'd'    O     O          'd'
                                              ***                            O    'd'    O          'd'
                                              ***                           'd'    O    'd'          O
                                              ***                            O    'd'    O
                                              ***                            O    'd'    O
                                              ***                            O    'd'    O
                                              ***                            O    'd'    O
                                              ***                            O    'd'    O
                                              ***                            O    'd'    O
                                              ***                            O    'd'    O
                                              ***                            O    'd'    O
Environment                                   ***                            O    'd'    O
Power                                         ***                            O    'd'    O
Cabling                                       ***                            O    'd'    O
</TABLE>

Annex I                                                                  Page 14

***   Confidential material redacted and filed separately with the Commission.

Vision Plant Inc.                                       Telematics Wireless Ltd.

5.8.3 PROJECT MANAGEMENT

<TABLE>

MAJOR ITEM                                                                  PHASE ONE   PHASE TWO/THREE
--------------------                                                        ---------   ---------------

                                                                             C     S     C           S
Radio network design, propagation analysis, site preparations                O    'd'    O          'd'
NCC Assembly, Base Station subsystem and system tests                       'd'    O     O          'd'
Sub system Testing (Hardware Test, S/W Loading)                             'd'    O     O          'd'
Commercial operation and on-going Maintenance                                O    'd'    O          'd'
</TABLE>

6. MAINTENANCE

During the establishment and initial operation of the System, the Customer will
provide maintenance to the general infrastructure of the NCC and the Base
Stations, including masts installed by the contractor, under the guidance and
supervision by the Supplier. The Customer will keep a precise record of all
spare equipment stored in NCC warehouse for the purposes of maintaining the
system. When an item of equipment is replaced, the Supplier will send the
defective item to be repaired.

During the deployment, initial operation and CD for each Phase, the maintenance
of all the equipment supplied by the Supplier will be performed by the Supplier
as addressed in the Agreement. Further maintenance of this equipment will be
performed according to the Maintenance Agreement that will be executed between
the Parties.

The Customer will keep a sufficient level of spare units to insure the required
response times. Failed equipment will be shipped to Israel for repair and
replacement. The repair time in Israel will not be more than 30 calendar days
after receiving equipment.

The Customer will keep a detailed record with regard to the date and type of
malfunctions, the method in which each was handled, and the time it took to
repair the malfunction.

7. INFRASTRUCTURE ACCEPTANCE TESTS

These acceptance tests refer to the acceptance by the Supplier of the
infrastructure preparations and associated works performed by the Customer with
regard to NCC and Base Stations. Tests of Base Stations' infrastructure are
specified in Appendix B of this SOW. Tests of NCC infrastructure are specified
in Appendix C of this SOW. The tests will be performed by the Supplier in the
presence and the assistance of the Customer.

8. SYSTEM ACCEPTANCE TESTS

System Acceptance Testing will be performed according to the Acceptance Test
Procedures that will be agreed upon between the Parties at CDR. The System
Acceptance Testing will be divided into following phases:

Annex I                                                                  Page 15

Vision Plant Inc.                                       Telematics Wireless Ltd.

i. Base Station Acceptance Testing.

These tests will demonstrate Base Station's equipment compliance with its
specifications.

ii. End user equipment Acceptance Testing.

These tests will demonstrate end use terminals, including VLU and PLU compliance
with their specifications.

iii. System Acceptance Testing.

This testing will be performed upon completion of the deployment of the System
which includes end user terminal, Base Station and NCC for each System. This
testing will demonstrate the overall performance of the System in terms of
operating procedures, location capability, messaging capability, coverage,
interrogation rate (capacity parameter) etc. The testing will be performed using
specified number of Vehicle and Personal Location Units. Upon one month from the
successful completion of System Acceptance Testing the System will be officially
transferred to the responsibility of the Customer.

9. REPORTS AND DESIGN REVIEWS

During the performance of the project the Supplier will submit a monthly
progress report to the Customer. The report will include a description of the
scope of the work planned for the preceding month in the original plan against
actual performance. The report will include a brief description of irregular
incidents and malfunctions in the implementation of the project which may delay
the schedule for each Phase. The Parties will hold a Kick-of Meeting and two
Design Reviews, PDR(Preliminary Design Review) and CDR(Critical Design Review)
where the detailed status of the project with a breakdown of activities
performed in relation to planning, and a detailed working plan for the future
will be presented. The Design Reviews will be performed at the location(s)
designated by the Customer. At Kick-off Meeting a Project Organization Chart
will be presented by the Supplier.

10. SYSTEM DOCUMENTATION

The Supplier will provide the following documentation as minimum in due course
to be requested by the Customer:

i. Base Station Specifications
ii. Base Station Infrastructure requirements specifications
iii. Vehicle Location Unit Specifications
iv. Vehicle Location Unit general installation instructions
v. Fleet Management post Operating Manual (optional)
vi. Personal Location Unit Specifications
vii. NCC Diagrams
viii. NCC Infrastructure requirements specifications
ix. NCC Operating Procedures
x. VLU and PAL Registration and Activation Procedure
xi. System Acceptance Test Procedures
xii. Monthly progress reports
xiii. Design Reviews documentation
xiv. Project Organization Chart

Annex I                                                                  Page 16

Vision Plant Inc.                                       Telematics Wireless Ltd.

The above documentation will be in English.

The Customer or local contractors if applicable, responsible for NCC and Base
Station infrastructure preparation, will maintain documentation for each site to
be established. The documentation of NCC will include a detailed description of
the electricity system, including all interim boards and the main electricity
board, specifying the types of cables and automatic switches. The markings of
the switches in the documentation will be identical to their markings on
electricity boards. The documentation of the System will include diagrams of the
connections of all components of the System, specifying numbers of cables, types
of cables, and names of connectors. The markings in the diagrams will be
identical to the markings on cables and connectors.

For each Base Station the Customer will prepare a booklet, indicating the site
on a map with a scale of 1:100,000. The booklet will also contain a descriptive
diagram of the site and the mast, specifying the disposition of the dedicated
equipment, and digital photographs of the interior and exterior of the site. The
documentation will include a complete address of the site, precise coordinates
of the antennas, the name and telephone numbers of the site owner, the name and
telephone numbers of the contractor's liaison, details of electricity feeding up
to the structure's main board, and the paths of communication and grounding
lines. The Customer will provide a detailed description of the connections
between components of the system, including types of cables, their length, and
types of connectors. The Customer will specify the manufacturer's number of each
of the items of equipment installed at the site, including air-conditioner,
electricity board, and components of the locating system. The station's
infrastructure acceptance test report will be attached to the booklet. All of
the material will be submitted on magnetic media and in a hard copy.

11. THE CUSTOMER FURNISHED ITEMS

In accordance with Article 42 of the Agreement, the following are the Customer
Furnished Items which include Equipment, Installation, Information and Services.
The detailed Items not described in the annex shall be discussed at PDR or
subsequent project management.

<TABLE>

------------------------------------------------------------------------------------------
ITEMS                              CONTENT
------------------------------------------------------------------------------------------

The Customer Furnished Equipment   1.   ***
(FE)                               2.   ***
                                   3.   ***
                                   4.   ***
                                   5.   ***
------------------------------------------------------------------------------------------
The Customer Furnished             1.   ***
Information (FI)                   2.   ***
                                   3.   ***
                                   4.   ***
                                   5.   ***
------------------------------------------------------------------------------------------
</TABLE>

Annex I                                                                  Page 17

***   Confidential material redacted and filed separately with the Commission.

Vision Plant Inc.                                       Telematics Wireless Ltd.

<TABLE>

------------------------------------------------------------------------------------------

                                   6.   ***

------------------------------------------------------------------------------------------
The Customer Furnished             1.   ***
Installations (FIN)                2.   ***
------------------------------------------------------------------------------------------
The Customer Furnished Services    1.   ***
(FS)                               2.   ***
                                   3.   ***
                                   4.   ***
                                   5.   ***
                                   6.   ***
                                   7.   ***
                                   8.   ***
                                   9.   ***
                                   10.  ***
                                   11.  ***
                                   12.  ***
                                   13.  ***
------------------------------------------------------------------------------------------
</TABLE>

12. ADDITIONAL SOFTWARE TERMS AND CONDITIONS

This section contains additional terms and conditions relating to the Supplier's
software that are not included elsewhere in this Agreement and Annexes.

12.1 RECITALS RELATING TO SOFTWARE

The Supplier agrees to provide Support Services relating to the Supplier's
Software.

12.2 THE SUPPLIER'S SOFTWARE

12.2.1 Specification

i. The Supplier may alter, substitute or modify the specification of the
Supplier's Software from time to time. The Supplier shall notify the Customer as
soon as practicable of any such alteration, substitution or modification.

ii. The Supplier's Software will continue to be subject to this Agreement
notwithstanding any such alteration, substitution or modification.

iii. The Customer shall be under no obligation to install and implement such
changes as notified pursuant to paragraph 12.2.1.a.

iv. The Supplier shall have no obligation to support superseded versions of the
Supplier's Software beyond twelve (12) months following the date of notification
of supersession pursuant to paragraphs 12.2.1.a or 12.2.6.

12.2.2 Documentation

i. The Supplier shall provide the Customer with two (2) copies of System
Software Reference Manual, System Console Operator's Manual, Base Station
Maintainer's Manual and the Terminal Installation Manual (the "Associated
Documentation").

ii. The Associated Documentation shall not be used by the Customer except to
assist in the normal operation of the Supplier's Software by itself or its
customers.

Annex I                                                                  Page 18

***   Confidential material redacted and filed separately with the Commission.

Vision Plant Inc.                                       Telematics Wireless Ltd.

12.2.3 License

i. The Customer may only use the Supplier's Software in accordance with the
Associated Documentation.

ii. The Customer shall not use the Supplier's Software on equipment other than
Supplier's Network hardware without the prior written consent of the Supplier.

iii. The Customer shall not copy, alter, modify or reproduce the Supplier's
Software or the Associated Documentation without the Supplier's prior written
consent except for copies of manuals for its customers or own use.

iv. The Customer shall not permit the Supplier's software to be used by any
other person except as permitted under paragraph 12.5.

v. In addition to other remedies available to the Supplier under this Agreement
or otherwise, any unauthorized use, alteration, modification, reproduction,
publication, disclosure or transfer of the Supplier's Software will entitle the
Supplier to any available equitable or other remedy against the Customer,
including injunctive relief.

12.2.4 Installation

i. The Supplier shall install the Supplier's Software during the installation of
the initial Infrastructure Hardware.

ii. The Customer shall give the Supplier such reasonable assistance, including
the provision of personnel and equipment, as the Supplier considers necessary to
ensure satisfactory installation. The Customer shall ensure the Supplier is
granted all reasonable access, including necessary security clearances, for the
purposes of complying with this clause.

12.2.5 Reverse Engineering

The Customer shall not reverse assemble or reverse compile or directly or
indirectly allow or cause a third party to reverse assemble or reverse compile
the whole or any part of the Supplier's Software.

12.2.6 New Releases

i. The Customer shall be entitled to receive New Releases of the Supplier's
Software and shall comply with a direction from the Supplier to:

     o    install New Releases of the Supplier's Software from time to time
          provided that such installation shall not cause unreasonable
          disruption to the functioning the Supplier's Network; and

ii. Where such replacement is made:

     o    this Agreement will continue to apply in all respects to the New
          Releases and that the New Releases shall forthwith be deemed to be the
          Supplier's Software for the purpose of this Agreement.

Annex I                                                                  Page 19

Vision Plant Inc.                                       Telematics Wireless Ltd.

12.2.7 Security

i. The Customer will be solely responsible for the use, supervision, management
and control of the Supplier's Software and Associated Documentation delivered to
the Customer.

ii. The Customer will use its best endeavors to ensure through appropriate
contractual terms with the Subscribers that the Supplier's Software is protected
at all times from misuse, damage or destruction.

12.2.8 Warranties

i. The Supplier warrants that the Supplier's Software will be properly installed
and will substantially operate in accordance with the specifications in Annex I.

ii. The provisions of Article 12 of the Agreement shall apply mutatis mutandis.

12.3 SUPPORT SERVICES

12.3.1 Supply of Support Services

i. The Supplier shall provide Support Services in response to submission of a
fault report on the prescribed form by the Customer relating to a suspected
defect or error in the Supplier's Software causing the Supplier's Software to
depart significantly from Annex 1.

ii. The Supplier shall perform such Support Services as it considers necessary
to ensure the Supplier's Software remains in substantial conformity with the
Specification but only to the extent necessary to ensure the Customer's
commercial use of the system is unaffected by any non-conformity.

12.3.2 Support Services Availability

i. The Supplier shall provide Support Services during its normal working hours.
The Supplier shall use its best efforts to provide emergency support outside of
these hours.

ii. The Customer shall, if so requested by the Supplier, give the Supplier a
listing of output and any other data which the Supplier requires in order to
reproduce operating conditions similar to those present when any defect or error
in the Supplier's Software was discovered.

12.3.3  Exclusions

i. Support Services to be provided by the Supplier under this Agreement do not
include:

     o    correction of errors or defects caused by operation of the Supplier's
          Software or the Designated Hardware in a manner other than that
          specified by the Supplier;

     o    correction of errors or defects caused by modification, revision,
          variation, translation or alteration of the Supplier's Software not
          authorized by the Supplier;

     o    correction of errors caused by the use of computer programs not
          licensed by the Supplier to the Customer;

     o    correction of errors caused by the failure of the Customer to provide
          suitably qualified and adequately trained operating and programming
          staff for the operation of the Supplier's Software;

     o    rectification of errors caused by use of the Supplier's Software other
          than in accordance with the Manuals;

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Vision Plant Inc.                                       Telematics Wireless Ltd.

     o    rectification of errors caused by a fault in the Designated Hardware;

     o    rectification of errors caused by inadequate on site equipment
          maintenance;

     o    furnishing or maintenance of accessories; attachments, supplies,

     o    consumables or associated items not provided by the Supplier.

     o    correction of errors arising directly or indirectly out of the
          Customer's failure to comply with this Agreement or any other
          agreement between the parties relating to the Supplier's Software; or

     o    Support Services made more difficult by the Customer's failure to
          comply with this Agreement or any other agreement between the parties
          relating to the Supplier's Software.

ii. In the event the Customer requests any of the Services referred to in
12.3.3.a, the Supplier shall present the cost for the implementation and
incorporation of the Services asked by the Customer taking into consideration
the timeframe. If the Customer chooses to implement the Services, the cost shall
be borne by the Customer and the timeframe shall be adjusted accordingly.

12.3.4 Access for the Supplier's Personnel

i. The Customer shall, where relevant, ensure the Supplier's personnel have full
and safe access to the Supplier's Software and the Designated Hardware at all
reasonable times for the purpose of:

     o    providing the Support Services; and

     o    installing New Releases.

The Customer shall also ensure that the Supplier's personnel are provided with
all information, facilities, services and accessories reasonably required by the
Supplier to enable the Supplier to comply with its obligations under this
Agreement.

ii. The Customer shall, where relevant, provide on request a suitably qualified
or informed representative, agent or employee to accompany the Supplier's
support personnel and to advise the Supplier on access or on any other matter
within the Customer's knowledge or control which will assist the Supplier in
complying with its obligations under this Agreement.

12.3.5 Additional Services

From the Handover Date, the Supplier will at no additional cost to the Customer
undertake the following activities:

i. deliver to the Customer all new software developments and functional
improvements to the Supplier's Network Software undertaken by the Supplier in
the generic development of the product;

ii. deliver new releases of the Supplier's Software in order to preserve
compatibility with the generic the Supplier's Network Software.

12.4 SUB-LICENSING OF SOFTWARE

12.4.1 The Customer shall grant Software, sub-license(s) to its subscribers on
the following conditions:

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Vision Plant Inc.                                       Telematics Wireless Ltd.

i. the sub-license shall only be for the fleet management station software as
described in paragraph 13 of this Annex;

ii. the Customer shall enter into an agreement with each subscriber which
contains provisions protecting the Intellectual Property to the Supplier's
satisfaction.

12.5 COPYRIGHT

12.5.1 The Customer shall ensure that any of the Supplier's Software which it
sub-licences pursuant to this Agreement bears notice of copyright and a notice
stipulating that the Supplier's Software or any improvements thereto contain
confidential information. The Customer shall comply with any reasonable
directions of the Supplier as to the form or content of such notice.

12.5.2 The provisions of Article 32 shall apply with respect to the copyright
and other intellectual property in the Supplier's Software.

12.6 LOCAL ADAPTATION OF THE SOFTWARE

12.6.1 The Supplier shall supply to the Customer all relevant data and API for
the fleet management system and Console to enable the Customer to produce Korean
language versions of such software.

12.6.2 The Supplier shall be responsible for technically assisting the
functioning, performance or support of any software produced by the Customer
using such data and APC.

12.6.3 The Customer must ensure that all reasonable steps are taken to protect
the Suppliers Intellectual Property rights in the use of such data and APC.

13. THE SUPPLIER'S SOFTWARE

The Supplier's Software comprises:

13.1 NETWORK SOFTWARE

The proprietary software or firmware contained in the NCC computers and/or the
Base Station computers and circuit card assemblies that is required to perform
the functions of location, messaging and alarm reception as well as control and
monitoring of the System.

13.2 FLEET MANAGEMENT SOFTWARE (OPTIONAL)

The proprietary executable code, data files and support files installed on a
personal computer for the purposes of allowing that computer to function as a
Fleet Management Station connected to the System.

13.3 CONSOLE SOFTWARE

The proprietary executable code, data files and support files installed on a
personal computer for the purposes of allowing that computer to function as a
System Console connected to the System.

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Vision Plant Inc.                                       Telematics Wireless Ltd.

13.4 MOBILE TERMINAL (VLU AND PAL) SOFTWARE

The proprietary firmware that resides in the Mobile Terminal to implement the
functions required of a Transponder operating on the Network.

13.5 OTHER SOFTWARE

The proprietary applications software and/or utilities that may be made
available from time to time for installation on a NCC computer, a Fleet
Management or System Console or other computer to provide ancillary functions

Annex I                                                                  Page 23

Vision Plant Inc.                                       Telematics Wireless Ltd.

                               LIST OF APPENDIXES

APPENDIX A: Equipment List

APPENDIX B: Infrastructure Acceptance Test - Base Stations

APPENDIX C: Infrastructure Acceptance Test - NCC

APPENDIX D: System Acceptance Test Principles

APPENDIX E: Operational NCC general Description

APPENDIX F: Requirements from Digital Mapping Content

Annex I                                                                  Page 24

Vision Plant Inc.                                       Telematics Wireless Ltd.

                                   APPENDIX A

                           EQUIPMENT LIST (PHASE ONE)

<TABLE>

---------------------------------------------------------------------------------------------------------------
                                                                                              SUPPLYING PARTY
                                                                                            -------------------
  LOCATION                                SUBSYSTEM                              QUANTITY   CUSTOMER   SUPPLIER
---------------------------------------------------------------------------------------------------------------

 Base station                                ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***         O
                                             ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***
                                             ***                                    ***         O
                                             ***                                    ***
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
---------------------------------------------------------------------------------------------------------------
  NCC (Full                                  ***                                    ***         O
   Backup)                                   ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
---------------------------------------------------------------------------------------------------------------
 Spare Parts                                 ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***         O
                                             ***                                    ***         O
---------------------------------------------------------------------------------------------------------------
   Software                                  ***                                    ***         O
---------------------------------------------------------------------------------------------------------------
</TABLE>

Annex I                                                                  Page 25

***   Confidential material redacted and filed separately with the Commission.

Vision Plant Inc.                                       Telematics Wireless Ltd.

EQUIPMENT LIST (PHASE TWO)

<TABLE>

---------------------------------------------------------------------------------------------------------------
                                                                                              SUPPLYING PARTY
                                                                                            -------------------
  LOCATION                                SUBSYSTEM                              QUANTITY   CUSTOMER   SUPPLIER
---------------------------------------------------------------------------------------------------------------

 Base station                                ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***         O
                                             ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***
                                             ***                                    ***         O
                                             ***                                    ***
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
---------------------------------------------------------------------------------------------------------------
  NCC (Full                                  ***                                    ***         O
   backup)                                   ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
---------------------------------------------------------------------------------------------------------------
 Spare Parts                                 ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***         O
                                             ***                                    ***         O
---------------------------------------------------------------------------------------------------------------
  Software                                   ***                                    ***                    O
---------------------------------------------------------------------------------------------------------------
</TABLE>

Annex I                                                                  Page 26

***   Confidential material redacted and filed separately with the Commission.

Vision Plant Inc.                                       Telematics Wireless Ltd.

EQUIPMENT LIST (PHASE THREE)

<TABLE>

---------------------------------------------------------------------------------------------------------------
                                                                                              SUPPLYING PARTY
                                                                                            -------------------
  LOCATION                                SUBSYSTEM                              QUANTITY   CUSTOMER   SUPPLIER
---------------------------------------------------------------------------------------------------------------

 Base station                                ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***         O
                                             ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***
                                             ***                                    ***         O
                                             ***                                    ***
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
---------------------------------------------------------------------------------------------------------------
  NCC (Full                                  ***                                    ***         O
   backup)                                   ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
                                             ***                                    ***         O
---------------------------------------------------------------------------------------------------------------
 Spare Parts                                 ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***                    O
                                             ***                                    ***         O
                                             ***                                    ***         O
---------------------------------------------------------------------------------------------------------------
   Software                                  ***                                    ***                    O
---------------------------------------------------------------------------------------------------------------
</TABLE>

Annex I                                                                  Page 27

***   Confidential material redacted and filed separately with the Commission.

Vision Plant Inc.                                       Telematics Wireless Ltd.

                                   APPENDIX B

INFRASTRUCTURE ACCEPTANCE TEST: BASE STATIONS

Base Station's infrastructure acceptance tests will consist of the following:

1. MAST

i. Testing the existence and integrity of all permits required for the
establishment and operation of the base station.

ii. Approval of the mast by a safety engineer if applicable.

iii. Results of geodetic measurements.

iv. Ensuring that the grounding of the mast meets the standards.

v. Painting, illumination, climbing ladder if applicable.

vi. Sealing connectors, marking and path of RF cables.

vii. Antennas: reinforcing arms, jumpers.

2. STRUCTURE

i. Dragging and sealing the structure.

ii. Ensuring that the grounding of the structure meets the standards.

iii. Acid-resistant floor coating.

iv. The type and installation of the air-conditioner.

v. Antenna concentrator: sealing, marking and grounding, VSWR for adjusting the
antennas.

vi. Electricity board in the structure: value and types of switches, marking.

vii. Cabling in the structure: cable ladders, arrangement, marking, connectors.

viii. Regularity of communication cables (data and dialing) between the station
and NCC.

ix. Batteries: type of batteries, rack, connectors to power supply and
electricity board.

x. Fire extinguisher: type, working order, method of installation, expiry dates.

xi. Illumination, fire/smoke detector, door-opening sensor.

3. EQUIPMENT

i. Setting up bases in the structure.

ii. Installing units in bases, connections between units, marking.

iii. Electrical connections, grounding, communication and RF cables to the
system's units.

iv. Installation of lightning arresters, AC, RF and communication -
installation, marking.

v. Running order of all items of the system in accordance with the results of
the self-test of each unit.

vi. Running order of the station against the NCC.

4. DOCUMENTATION

i. A map of the area indicating the site.

ii. A map of the site indicating the location of the mast, antennas, the
structure and cables paths.

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Vision Plant Inc.                                       Telematics Wireless Ltd.

iii. A drawing of the interior of the structure indicating equipment bases,
batteries, antenna concentrators, electricity board, and entry points of
communication lines.

iv. A drawing of the interior of the equipment base, indicating all units and
cables.

v. Photographs of the site, integrity of the documentation, and its concordance
with the site.

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Vision Plant Inc.                                       Telematics Wireless Ltd.

                                   APPENDIX C

INFRASTRUCTURE ACCEPTANCE TEST: NCC

NCC's infrastructure acceptance tests will consist of the following:

i. Tests of all equipment (computers, communication): connection to power,
markings of sockets and communication points.

ii. Lighting: running order of the lighting, a sufficient quantity, no glare on
monitors.

iii. Racks: cables ducting, precise and legible markings, and general quality of
work.

iv. Floating floor: stability, ducting of cables underneath the floor, markings,
and general quality of work.

v. Examining the running order of modems for dialing, including connections to
the communication cables.

vi. Inspection of the air-conditioning system concordance with the plans.

vii. Inspection of the communication to the sites from the SMC workstations.

viii. Inspection of the entire layout of the A/B switches.

ix. Inspection of the UPS system support.

     o    Voltage drop in the network.

     o    Continuous good running order of the system.

     o    Good running order of the emergency lighting.

     o    Generator activation.

     o    After generator activation - activation of the air-conditioning
          system.

     o    Generator drop in order to measure operation time of UPS batteries.

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Vision Plant Inc.                                       Telematics Wireless Ltd.

                                   APPENDIX D

SYSTEM ACCEPTANCE TEST PRINCIPLES

The system tests at the end of the System deployment for each Phase will consist
of the following:

1. OPERATIONAL TESTING OF THE BASE STATIONS

Operational testing of all the components of each Base Station will be performed
during the period of one week, every three hours, by means of diagnostic
programs from the NCC.

Availability of the following equipment should be reported during the tests:

i. GPS Receivers

ii. Paging Transmitters

iii. Receivers in the Stations (IBSU)

iv. Transmitters Controllers (SPCU)

2. AVAILABILITY TEST OF NCC

The test will be based on the current operation of the system and verification
of compliance with Operating Procedures.

3. TESTS OF COVERAGE AND LOCATION ACCURACY

The Test will include movement of defined number of PAL and VLU units in the
coverage area and the comparison between the actual location and the location
displayed in the NCC to demonstrate required CEP (Circular Equal Probability)
accuracy. The test will include at least 100 locations and 20 end user terminals
(to be provided by the Supplier) for each representative environment as
specified in paragraph 2.3.5 of Annex I.

In all the locations, the following data will be registered:

i. Number of receiving stations participating in the location process.

ii. The coordinates calculated by the system.

iii. The coordinates displayed at the operators' workstations.

iv. Actual location as reported from the field.

v. Quality of the signal reception (FOM).

vi. Stability of location.

In addition, the performance of message reception will be verified, including
synchronous and asynchronous messaging as specified above.

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Vision Plant Inc.                                       Telematics Wireless Ltd.

4. TEST OF CAPACITY PARAMETERS (NUMBER OF LOCATIONS PER SECOND)

The system will be operated in the continuous interrogation manner to
demonstrate required maximum interrogation rate capability.

The above data, after its processing, will enable to evaluate the quality of the
System service and maximum capacity.

The specifications in paragraph 2.4.5 of Annex I will be verified at each
representative environment as described in section 3 of this Appendix.

A detailed System Acceptance Test Procedure will be prepared by the Supplier and
agreed upon with the Customer at PDR.

Annex I                                                                  Page 32

Vision Plant Inc.                                       Telematics Wireless Ltd.

                                   APPENDIX E

Operational NCC General Description

1. GENERAL

The purpose of this document is to describe Ituran's Operational NCC.

[GRAPHIC OMITTED]

2. EVENT SERVER

2.1 GENERAL

The Event server functionality manages the operational NCC's activities. It
receives all incoming alarms received by the Ituran location system from the end
units and routes them to operator workstations. All the operator workstations
are connected to this server. In addition, the workstations are connected to the
location system gateway, and through this gateway they are able to send commands
to the end units and receive messages from the end units (such as location and
various status messages).

The Event Server also takes part in the unit activation process, the concluding
part of every new end unit installation.

2.2 MAIN USER INTERFACE

i. List of connected Operator Workstations with list of events in every station
and their status

ii. Communication monitor to the Operator Workstations over TCP/IP

iii. Control of all the NCC's operational parameters (method of workstation
routing and load balancing, operational policy control, workstation role
definitions etc.)

2.3 COMMUNICATION TO OPERATOR WORKSTATIONS

The Event Server is connected over TCP/IP to the Operator Workstations. Each
incoming Event message is routed to a workstation selected according to a few
alternate algorithms (the least busy workstation, the "next available" or
according to event type). Only this station can then handle this incoming event.

Main features are:

i. New incoming event will be routed to the relevant Operator Workstation that
has currently the lowest number of pending events, or by other parameters
detailed above.

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     o    New event will be added to the list of events.

     o    An option to temporarily stop routing new events to a specific
          Controller Station

ii. Temporarily or permanently close down a specific Operator Workstation and
transfer existing events to another Operator Workstation.

     o    Transferring events from one Operator Workstation to another Operator
          Workstation

iii. Automatic synchronization between Operator Workstation and Event Server
upon re-connection.

3. OPERATOR WORKSTATION

3.1  OPERATOR WORKSTATION MAIN FEATURES:

One, two or four opened mapping windows with option to display a different type
of map in each window (subject to maps availability).

i. A list of open events and their status

ii. Automatic sorting of incoming alarms risk level based on operational
scenarios entered into the system

iii. Full and unit communication abilities, allowing it to both monitor the unit
status and send commands to the unit.

iv. Support vector, raster and aerial photo maps

v. Specific vehicle real-time tracking

3.2 VEHICLE DETAILS SCREEN

This screen displays all vehicle telematics information such as: sensors,
location, velocity and direction (subject to availability of relevant sensors in
the vehicle).

3.3  VEHICLE COMMAND DIALOG OPTION

This dialog option is used for sending various commands to the vehicle,
including: location, enabling/disabling vehicle devices.

3.4 VEHICLE DISPLAY ON THE MAP

The vehicle will be displayed on the map with an icon. The icon is derived from
the relevant vehicle group.

3.5 RECORD AND REPLAY

All incoming and outgoing messages are recorded. The Controller can invoke a
report on any desired event. The report is generated as a table of events, which
can be replayed graphically on the map.

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Vision Plant Inc.                                       Telematics Wireless Ltd.

ANNEX I - SOW

APPENDIX F

REQUIREMENTS FROM DIGITAL MAPPING CONTENT

LOCATIONET GIS V2.1

1. GENERAL

LocatioNet real-time GIS engines use an underlying layer of propriety GIS binary
data, which is built from spatial databases (digital mapping content). Spatial
databases are supplied by data providers that collect and distribute digital map
information. There are many data providers around the world with different
distribution formats. LocatioNet recommends using data from one of the two major
and leading vendors, TeleAtlas or NavTech if possible, yet will work with the
Customer's chosen vendor. The two most popular data formats used for
distribution are Mif/Mid text files (developed by MapInfo) and binary Shape
files (developed by ESRI). Data can be easily transformed from one format to the
other. Digital data includes two types of information: geographical layers and
the road network. The geographical layers are used for vector maps drawing. The
road network is used for drawing, routing, creating geocode databases and
reverse geocoding.

1.1 GEOGRAPHICAL LAYERS

Each geographical layer binds geographical items with a common denominator (e.g.
gas stations, parks etc.). Each geographical item has a set of coordinates that
define its location and shape, and a set of attributes that define its look on
the map. The shapes can be of any type, such as: points, lines, polylines,
polygons and regions (xor combinations of multiple polygons). Examples for
geographical layers:

i. Administrative areas (e.g. states, provinces, cities etc.)

ii. Water areas (e.g. rivers, lakes, ponds etc.)

iii. Woodland

iv. Parks

v. Railroads

vi. POI (points of interest) (e.g. restaurants, hospitals, gas stations etc.)

1.2 ROAD NETWORK LAYER

The road layer represents the road network. This layer is very complex;
therefore a lot of information is needed. The road network consists of
intersecting roads. An intersection between two roads is called a node
(junction). A section of a road that lies between two nodes is called a road
segment; therefore every segment has a starting node and an ending node. Each
road can be constructed from one or more road segments. Each road segment has a
set of coordinates that define its location and shape, and a set of attributes
that define the complexity of use of this layer. The shape of a road segment is
always a line or a polyline.

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[GRAPHIC OMITTED]

2. MAPS ENGINE

The vector maps engine displays both geographical layers and the road network.

2.1 MINIMUM REQUIREMENTS FOR AN OBJECT IN A GEOGRAPHICAL LAYER

i. Unique object id

ii. Name (if any, or blank)

2.2 ADDITIONAL REQUIREMENTS FOR AN OBJECT IN A GEOGRAPHICAL LAYER

     o    Type (i.e. in the water layer, types can be: river, lake, pond etc.)

Once the type is supplied, there is an option to control each type's draw
attributes separately, instead of applying the same attributes for the entire
layer.

2.3 MINIMUM REQUIREMENTS FOR DRAWING A ROAD SEGMENT

i. Segment id, unique in its country

ii. Road level (i.e. national, between cities, main in city, neighborhood etc.)
Road levels function the same way as geographical layers types.

2.4 ADDITIONAL REQUIREMENTS FOR DRAWING A ROAD SEGMENT

i. Road type (i.e. highway, ramp, bridge, tunnel, circuit, pedestrian walkway
etc. - allow drawing special features inside road levels)

ii. Road Z level (i.e. a bridge going over a road will have a higher z level)

iii. Route number, if available

iv. Road name constructed of prefix, base name and suffix (i.e. if there isn't
any sufficient space to draw Calle de Zurita Maria, perhaps there is for Zurita)

v. Road dividers

vi. Traffic lights

3. GEOCODE ENGINE

The road network is also used for building geocode databases (i.e. all the
cities in state, all the streets in city etc.), and for reverse geocoding (i.e.
getting the address of a given coordinates). It is important to get a
description of the administrative hierarchy that the data supports, in order to
fully understand each country's attributes (e.g. Israel has county, cities and
streets while Austria has country, states, cities and streets, etc.).

Annex I                                                                  Page 36

Vision Plant Inc.                                       Telematics Wireless Ltd.

3.1 MINIMUM GEOCODE REQUIREMENTS

i. City name of road segment

ii. Road name of road segment

SUPPORTING MINIMUM REQUIREMENTS WILL ALLOW THE GEOCODE ENGINE TO PERFORM THESE
TASKS:

i. Return roads' center coordinates

ii. Transform coordinates into partial addresses

iii. Get supported countries list

iv. Get the cities list in state

v. Get the roads list in city

vi. Get the cities list in a circle or in a rectangle

vii. Get the roads list in a circle or in a rectangle

3.2 ADDITIONAL GEOCODE REQUIREMENTS
(In each road segment, extra but important)

i. Zone name in city (neighborhood)

ii. Region name in state (province, canton etc.)

iii. State name in country

iv. Left side house number format (i.e. O - odd, E - even, M - mix, U -
undefined)

v. Left from house number (as integer)

vi. Left to house number (as integer)

vii. Left zip code

viii. Right side house number format (as mentioned above)

ix. Right from house number (as integer)

x. Right to house number (as integer)

xi. Right zip code

xii. Road official name and other alternative names

xiii. Each roadside may have a different name

xiv. Each roadside may belongs to a different city

SUPPORTING EXTRA REQUIREMENTS WILL ALLOW THE GEOCODE ENGINE TO PERFORM THESE
TASKS:

i. Convert full addresses into coordinates

ii. Transform coordinates into full addresses

iii. Get the cities list in zip code

iv. Get the roads list in zip code

SUPPORTING EACH SEGMENT'S FROM NODE ID AND TO NODE ID WILL ALLOW THE GEOCODE
ENGINE TO PERFORM THESES TASKS:

i. Return a coordinate of an intersection between two roads

ii. Get the intersections list in a circle or in a rectangle

iii. Get all intersecting road names to a given road

Annex I                                                                  Page 37

Vision Plant Inc.                                       Telematics Wireless Ltd.

                                    ANNEX II

                                   APPENDIX A

                           LETTER OF CREDIT BY SWIFT

TO: BANK HAPOALIM B.M. - TEL AVIV

FROM: A LEADING INTERNATIONAL BANK

40A: FORM OF DOCUMENTARY CREDIT: IRREVOCABLE

20: DOC. CRED. NO.

31C: DATE OF ISSUE: ________________

31D: DATE AND PLACE OF EXPIRY: ________________ IN ISRAEL (__ MONTHS AFTER THE
L/C ISSUANCE DATE)

50: APPLICANT: VISION PLANT INC: 13 FLOOR, SEWOO BUILDING, 837-12, YOUKSAM-DONG,
KANGNAM-KU, SEOUL, KOREA

59: BENEFICIARY: TELEMATICS WIRELESS LTD. 26 HAMELACHA ST., POB 1911, HOLON
58117

32B: CURRENCY CODE AMOUNT: $US

41A: AVAILABLE WITH....BY: BANK HAPOALIM B.M. BY NEGOTIATION

42C: DRAFTS AT ________________ SIGHT

42D: DRAWEE: ISSUING BANK

43P: PARTIAL SHIPMENTS: ALLOWED

43T: TRANSHIPMENT: ALLOWED

44A: LOADING OF BOAD/DISPATCH/TAKING IN CHARGE AT/FROM: ANY PORT OR AIRPORT IN
ISRAEL

44B: FOR TRANSPORTATION TO: ANY PORT OR AIRPORT IN KOREA

44C: LATEST DATE OF SHIPMENT: ________________

45A: DESCRIPTION OF GOODS AND/OR SERVICES:

SUPPLY OF RADIO LOCATION SYSTEM IN KOREA AS PER CONTRACT NO: LSA 20040831 DATED
31 AUGUST 2004 (the "AGREEMENT")

Annex II                           Appendix A                             Page 1

Vision Plant Inc.                                       Telematics Wireless Ltd.

46A: DOCUMENTS REQUIRED:

A. DOCUMENTS REQUIRED FOR THE DELIVERY OF PRODUCTS AMOUNTING TO US$

1) 3/3 ORIGINALS PLUS 3 NON NEGOTIABLE COPIES OF CLEAN ON BOARD MARINE BILLS OF
LADING MADE OUT TO ORDER OF ISSUING BANK MARKED "PAYABLE AT DESTINATION" NOTIFY:
APPLICANT.

AND/OR

AIRWAYBILL (3RD ORIGINAL - FOR SHIPPER) CONSIGNED TO ISSUING BANK MARKED
"PAYABLE AT DESTINATION" NOTIFY: APPLICANT.

2) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

3) PACKING LIST IN ONE ORIGINAL AND 2 COPIES.

4) ONE (1) ORIGINAL CERTIFICATE OF CONFORMANCE RELATED TO THE GOODS SIGNED BY
THE DULY AUTHORIZED REPRESENTATIVE OF THE BENEFICIARY AS PER ARTICLE 11.2 OF THE
AGREEMENT.

5) ONE (1) QUALITY ASSURANCE CERTIFICATE RELATED TO THE GOODS SIGNED BY THE
REPRESENTATIVE OF THE BENEFICIARY AS PER ARTICLE 11.3 OF THE AGREEMENT.

6) ONE (1) ORIGINAL CERTIFICATE SIGNED BY THE REPRESENTATIVE OF THE BENEFICIARY
CERTIFYING THAT THE BENEFICIARY DECLARES THAT THE GOODS WERE INSPECTED AND
TESTED BY THE REPRESENTATIVE OF THE BENEFICIARY AS PER ARTICLE 11.4 OF THE
AGREEMENT.

B. DOCUMENTS REQUIRED FOR PRELIMINARY DESIGN REVIEW AMOUNTING TO US$

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

2) ORIGINAL APPLICANT'S CERTIFICATE CERTIFYING THAT PRELIMINARY DESIGN REVIEW
HAS BEEN COMPLETED AND THE REPORT HAS BEEN RECEIVED BY THE APPLICANT.

C. DOCUMENTS REQUIRED FOR CRITICAL DESIGN REVIEWAMOUNTING TO US$

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

Annex II                           Appendix A                             Page 2

Vision Plant Inc.                                       Telematics Wireless Ltd.

2) ORIGINAL APPLICANT'S CERTIFICATE CERTIFYING THAT CRITICAL DESIGN REVIEW HAS
BEEN COMPLETED AND THE REPORT HAS BEEN RECEIVED BY THE APPLICANT.

D. DOCUMENTS REQUIRED FOR HANDOVER EVENT AMOUNTING TO US$

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

2) ORIGINAL APPLICANT'S DECLARATION STATING THAT HANDOVER OF THE SYSTEM OF PHASE
__ HAS BEEN COMPLETED.

3) ONE (1) COPY OF A WARRANTY BOND IN THE AMOUNT OF US$____________ (AS PER
ARTICLE 12.8 OF THE AGREEMENT) DULY CERTIFIED BY THE ISSUING BANK THEREOF.

47A: ADDITIONAL CONDITIONS

o PRESENTATION OF THE DOCUMENTS NO LATER THAN 21 DAYS AFTER THE TRANSPORT
DOCUMENT DATE.

o COMMERCIAL INVOICE TO SHOW FULL CONTRACT VALUE OF THE RELEVANT ITEM SUPPLIED,
DELIVERED OR PERFORMED AND THE NET AMOUNT PAYABLE UNDER THIS L/C.

o THIS LETTER OF CREDIT SHALL BE TERMINATED AND BECOME INVALID AS OF THE DATE
THE ISSUING BANK WILL RECEIVE A WRITTEN NOTICE FROM THE APPLICANT FOR THE
TERMINATION OF THE AGREEMENT PURSUANT TO ARTICLE 36.1 OF THE AGREEMENT.

71B: CHARGES: ALL THE BANKING COMMISSIONS AND CHARGES OUTSIDE ISRAEL ARE FOR
APPLICANT'S ACCOUNT.

49: CONFIRMATION INSTRUCTIONS: CONFIRM (ALL COSTS AND CHARGES FOR CONFIRMING
BANK SHALL BE FOR BENEFICIARY'S ACCOUNT.)

53A: REIMBURSING BANK: ________________

78: INSTRUCTIONS TO THE PAYING/ACCEPTING/NEGOTIATING BANK: UPON PRESENTATION OF
DOCUMENTS REQUIRED AT YOUR COUNTERS, PLEASE ADVISE US BY TESTED TELEX /
AUTHENTICATED SWIFT STATING AMOUNT OF DOCUMENTS PRESENTED, VALUE DATE OF YOUR
CLAIM AND TRANSPORT DOCUMENT NUMBER AND DATE.

WE HEREBY ENGAGE THAT ALL DOCUMENTS PRESENTED UNDER AND IN COMPLIANCE WITH THE
TERMS OF THIS L/C SHALL BE DULY HONORED.

Annex II                           Appendix A                             Page 3

Vision Plant Inc.                                       Telematics Wireless Ltd.

IN REIMBURSEMENT OF YOUR PAYMENT(S), YOU MAY DRAW BY TESTED TELEX /
AUTHENTICATED SWIFT ON OUR ACCOUNT WITH....(INSERT NAME OF REIMBURSING BANK)....
VALUE 3 BUSINESS DAYS AFTER DATE OF YOUR TELEX / SWIFT AS ABOVE.

DOCUMENTS TO BE FORWARDED TO US BY REGISTERED MAIL / COURIER.

THIS L/C IS SUBJECT TO UCPDC (REV. 1993) ICC BROCHURE 500. REIMBURSEMENT IS
SUBJECT TO UNIFORM RULES FOR BANK TO BANK REIMB. UNDER DOC. CREDITS ICC PUBL.
NO. 525. THIS MT700 CONSTITUTES OPERATIVE INSTRUMENT AND NO MAIL CONFIRMATION
FOLLOWS.

Annex II                           Appendix A                             Page 4

Vision Plant Inc.                                       Telematics Wireless Ltd.

                                    ANNEX II

                                   APPENDIX A

                           LETTER OF CREDIT BY SWIFT

TO: BANK HAPOALIM B.M. - TEL AVIV

FROM: A LEADING INTERNATIONAL BANK

40A: FORM OF DOCUMENTARY CREDIT: IRREVOCABLE

20: DOC. CRED. NO. : ________________

31C: DATE OF ISSUE: ________________

31D: DATE AND PLACE OF EXPIRY: ________________ IN ISRAEL (__ MONTHS AFTER THE
L/C ISSUANCE DATE)

50: APPLICANT: VISION PLANT INC., 13 FLOOR, SEWOO BUILDING, 837-12,
YOUKSAM-DONG, KANGNAM-KU, SEOUL, KOREA

59: BENEFICIARY: TELEMATICS WIRELESS LTD., 26 HAMELACHA ST., POB 1911, HOLON
58117

32B: CURRENCY CODE AMOUNT: $US

41A: AVAILABLE WITH....BY: BANK HAPOALIM B.M. BY NEGOTIATION

42C: DRAFTS AT...SIGHT

42D: DRAWEE: ISSUING BANK

43P: PARTIAL SHIPMENTS: ALLOWED

43T: TRANSHIPMENT: ALLOWED

44A: LOADING OF BOAD/DISPATCH/TAKING IN CHARGE AT/FROM: ANY PORT OR AIRPORT IN
ISRAEL

44B: FOR TRANSPORTATION TO: ANY PORT OR AIRPORT IN KOREA

44C: LATEST DATE OF SHIPMENT: ________________

45A: DESCRIPTION OF GOODS AND/OR SERVICES: SUPPLY OF RADIO LOCATION SYSTEM IN
KOREA AS PER CONTRACT NO: LSA 20040831 DATED 31 AUGUST 2004 (the "AGREEMENT")

46A: DOCUMENTS REQUIRED: ________________

Annex II                           Appendix A                             Page 1

Vision Plant Inc.                                       Telematics Wireless Ltd.

A. DOCUMENTS REQUIRED FOR THE DELIVERY OF PRODUCTS AMOUNTING TO US$

1) 3/3 ORIGINALS PLUS 3 NON NEGOTIABLE COPIES OF CLEAN ON BOARD MARINE BILLS OF
LADING MADE OUT TO ORDER OF ISSUING BANK MARKED "PAYABLE AT DESTINATION" NOTIFY:
APPLICANT.

AND/OR

AIRWAYBILL (3RD ORIGINAL - FOR SHIPPER) CONSIGNED TO ISSUING BANK MARKED
"PAYABLE AT DESTINATION" NOTIFY: APPLICANT.

2) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

3) PACKING LIST IN ONE ORIGINAL AND 2 COPIES.

4) ONE (1) ORIGINAL CERTIFICATE OF CONFORMANCE RELATED TO THE GOODS SIGNED BY
THE DULY AUTHORIZED REPRESENTATIVE OF THE BENEFICIARY AS PER ARTICLE 11.2 OF THE
AGREEMENT.

5) ONE (1) QUALITY ASSURANCE CERTIFICATE RELATED TO THE GOODS SIGNED BY THE
REPRESENTATIVE OF THE BENEFICIARY AS PER ARTICLE 11.3 OF THE AGREEMENT.

6) ONE (1) ORIGINAL CERTIFICATE SIGNED BY THE REPRESENTATIVE OF THE BENEFICIARY
CERTIFYING THAT THE BENEFICIARY DECLARES THAT THE GOODS WERE INSPECTED AND
TESTED BY THE REPRESENTATIVE OF THE BENEFICIARY AS PER ARTICLE 11.4 OF THE
AGREEMENT.

B. DOCUMENTS REQUIRED FOR PRELIMINARY DESIGN REVIEW AMOUNTING TO US$

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

2) ORIGINAL APPLICANT'S CERTIFICATE CERTIFYING THAT PRELIMINARY DESIGN REVIEW
HAS BEEN COMPLETED AND THE REPORT HAS BEEN RECEIVED BY THE APPLICANT.

C. DOCUMENTS REQUIRED FOR CRITICAL DESIGN REVIEW AMOUNTING TO US$

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

Annex II                           Appendix A                             Page 2

Vision Plant Inc.                                       Telematics Wireless Ltd.

2) ORIGINAL APPLICANT'S CERTIFICATE CERTIFYING THAT CRITICAL DESIGN REVIEW HAS
BEEN COMPLETED AND THE REPORT HAS BEEN RECEIVED BY THE APPLICANT.

D. DOCUMENTS REQUIRED FOR HANDOVER EVENT AMOUNTING TO US$

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

2) ORIGINAL APPLICANT'S DECLARATION STATING THAT HANDOVER OF THE SYSTEM OF PHASE
__ HAS BEEN COMPLETED.

3) ONE (1) COPY OF A WARRANTY BOND IN THE AMOUNT OF US$____________ (AS PER
ARTICLE 12.8 OF THE AGREEMENT) DULY CERTIFIED BY THE ISSUING BANK THEREOF.

47A: ADDITIONAL CONDITIONS

o PRESENTATION OF THE DOCUMENTS NO LATER THAN 21 DAYSAFTER THE TRANSPORT
DOCUMENT DATE.

o COMMERCIAL INVOICE TO SHOW FULL CONTRACT VALUE OF THE RELEVANT ITEM SUPPLIED,
DELIVERED OR PERFORMED AND THE NET AMOUNT PAYABLE UNDER THIS L/C.

o THIS LETTER OF CREDIT SHALL BE TERMINATED AND BECOME INVALID AS OF THE DATE
THE ISSUING BANK WILL RECEIVE A WRITTEN NOTICE FROM THE APPLICANT FOR THE
TERMINATION OF THE AGREEMENT PURSUANT TO ARTICLE 36.1 OF THE AGREEMENT.

Annex II                           Appendix A                             Page 3

Vision Plant Inc.                                       Telematics Wireless Ltd.

                                   ANNEX III

                       ESTIMATED PRICE AND PAYMENT TERMS

1. ESTIMATED PRICE

PHASE ONE

-------------------------------------------------------------------------
                                     UNIT PRICE              TOTAL AMOUNT
   ITEM            SUBSYSTEM            (US$)     QUANTITY       (US$)
-------------------------------------------------------------------------
   Base      CCSP (Receiving B/S)        ***         ***          ***
 Station             MPRF                ***         ***          ***
                (Receiving B/S)
                      CTU                ***         ***          ***
                     SPCU                ***         ***          ***
                   Sub total                                      ***
-------------------------------------------------------------------------
Licensing      System Licensing          ***         ***          ***
            NCC Software Licensing       ***         ***          ***
                   Sub total             ***                      ***
-------------------------------------------------------------------------
  Spare      CCSP (Receiving B/S)        ***         ***          ***
   Part       MPRF (Paging site)         ***         ***          ***
                      CTU                ***         ***          ***
                     SPCU                ***         ***          ***
                   Sub total                                      ***
-------------------------------------------------------------------------
 Software    Fleet Management S/W        ***         ***
-------------------------------------------------------------------------
                          System supporting services

Engineering, frequency adaptation, system modifications,          ***
management, supervision, training and consulting services
(including salaries, accommodation, travel) during the
deployment of the System
------------------------------------------------------------------------
                                  Total Price                     ***
------------------------------------------------------------------------

Annex III                                                                 Page 1

***   Confidential material redacted and filed separately with the Commission.

Vision Plant Inc.                                       Telematics Wireless Ltd.

PHASE TWO

------------------------------------------------------------------------
                                    UNIT PRICE              TOTAL AMOUNT
   ITEM            SUBSYSTEM           (US$)     QUANTITY       (US$)
------------------------------------------------------------------------
   Base      CCSP (Receiving B/S)       ***         ***          ***
 Station
             MPRF (Receiving B/S)       ***         ***          ***
                      CTU               ***         ***          ***
                     SPCU               ***         ***          ***
                   Sub total                                     ***
------------------------------------------------------------------------
          NCC Software Licensing        ***         ***          ***
------------------------------------------------------------------------
Spare Part   CCSP (Receiving B/S)       ***         ***          ***
             MPRF (Receiving B/S)       ***         ***          ***
                      CTU               ***         ***          ***
                     SPCU               ***         ***          ***
                   Sub total                                     ***
------------------------------------------------------------------------
 Software    Fleet Management S/W       ***         ***          ***
------------------------------------------------------------------------
                          System supporting services             ***
------------------------------------------------------------------------
                                  Total Price                    ***
------------------------------------------------------------------------

PHASE THREE

------------------------------------------------------------------------
                                    UNIT PRICE              TOTAL AMOUNT
   ITEM            SUBSYSTEM           (US$)     QUANTITY       (US$)
------------------------------------------------------------------------
   Base      CCSP (Receiving B/S)       ***         ***          ***
 Station
             MPRF (Receiving B/S)       ***         ***          ***
                      CTU               ***         ***          ***
                     SPCU               ***         ***          ***
                   Sub total                        ***          ***
------------------------------------------------------------------------
          NCC Software Licensing        ***         ***          ***
------------------------------------------------------------------------
Spare Part   CCSP (Receiving B/S)       ***         ***          ***
             MPRF (Receiving B/S)       ***         ***          ***
                      CTU               ***         ***          ***
                     SPCU               ***         ***          ***
                   Sub total
------------------------------------------------------------------------
 Software    Fleet Management S/W       ***         ***          ***
------------------------------------------------------------------------
                          System supporting services             ***
------------------------------------------------------------------------
                                  Total Price                    ***
------------------------------------------------------------------------

Annex III                                                                 Page 2

***   Confidential material redacted and filed separately with the Commission.

Vision Plant Inc.                                       Telematics Wireless Ltd.

2. PAYMENT SCHEDULE FOR EACH PHASE

-----------------------------------------------------
         MILESTONES                    PAYMENT %
-----------------------------------------------------
   Upon Commencement Date                ***
             PDR                         ***
             CDR                         ***
Upon the Delivery to the site            ***
        Handover Date                    ***
-----------------------------------------------------
            TOTAL                        100%
=====================================================

3. INVOICE FORMAT

The Supplier shall provide the invoice which, as a minimum, will include all the
information as specified in the following indicative invoice format:

                     Telematics-Wireless Ltd.
         26 Hamelachi St., P.O.B. 1911 Holon 58117 Israel

--------------------------------------------------------------------------------
SHIP TO:                                        Contract No.
                                                TW Order No.         Invoice No.
--------------------------------------------------------------------------------
Customer:                                       End User
--------------------------------------------------------------------------------
ITEM                             DESCRIPTION                      PRICE   AMOUNT
--------------------------------------------------------------------------------

            I hereby certify that all these details of items
            are in accordance with the Agreement.
--------------------------------------------------------------------------------

Annex III                                                                 Page 3

***   Confidential material redacted and filed separately with the Commission.

                            REPRESENTATION AGREEMENT

This REPRESENTATION AGREEMENT (hereinafter referred to as the "Agreement" or
this "Agreement"), effective as of June ___, 2004, is made by and between
TELEMATICS WIRELESS LTD., having its principal place of business at 26 Hamelacha
Street, Holon 58117, Israel (hereinafter "Telematics") and KOREA INTEGRATED
SERVICES CO., LTD., having its principal place of business at #703 Seoul Center
Building 91-1, Sogong-dong, Chung-gu, Seoul 100-070 Republic of Korea
(hereinafter "Representative").

WHEREAS, Telematics seeks to promote its products and those of ITURAN CAR
COMMUNICATION AND LOCATION LTD. ("Ituran") in the Republic of Korea and possibly
other countries in Asia, and has represented that it is duly authorized to
represent and act for and on behalf of Ituran.

WHEREAS, Representative has the expertise to provide assistance and advice to
Telematics in support of Telematics' marketing activities; and

WHEREAS, Telematics desires to retain Representative to provide such assistance
and advice, and Representative desires to offer Telematics such assistance and
advice.

NOW, THEREFORE, in consideration of the promises and mutual obligations
hereinafter set forth, the parties hereto agree as follows:

1. APPOINTMENT

Telematics hereby appoints Representative, and Representative agrees to act, as
Telematics' exclusive Representative in the Territory and for the Products
pursuant to Article 2 and 3, respectively.

Likewise, Telematics agrees not to permit any of its officers, directors,
employees, advisors or other representative to, without prior written consent of
Representative (i) initiate or solicit, directly or indirectly, any inquiries or
the making of any proposal in the Territory, (ii) engage in any negotiations or
discussions with any person in the Territory or otherwise facilitate any effort
or attempt to make or implement an agreement.

2. TERRITORY

Telematics hereby agrees to appoint Representative as its sole representative in
the Republic of Korea and other Asian countries (the "Territory"), which will be
specified in the definitive agreement to be executed between Telematics and
Service Provider in Korea.

3. PRODUCTS

(a) Any and all components and associated services of Ituran's terrestrial
location system, sold by Telematics, including but not limited to the
followings: Equipments associated with establishing the infrastructure for
services to be provided by Service Provider as set forth in section 4(a) based
on Telematics' technology including but not limited to receiving stations,
peripheral equipment for receiving base stations, paging transmitters,
calibration transmissions

                                       1

units, peripheral equipment for transmitters, computers and telecommunication
equipment for control centers, and standard test equipment ("Infrastructure
Equipment").

(b) Technology licenses including but not limited to system licensing and
network control center software licensing ("Licensing").

(c) Consulting services including but not limited to engineering, frequency
adaptation, system modifications, management, supervision, training and general
consulting services provided by the Telematics team during the deployment of the
system ("Consulting").

(d) End user equipments including but not limited to Telematics' standard
vehicle kit, optional high-end vehicle location unit and alarm kit, and Personal
Alarm Locator (PAL) ("End user equipment").

(e) Maintenance and support services provided after the completion of Service
Provider's system deployment ("Maintenance and Support")

4. REPRESENTATIVE'S ACTIVITIES

Representative shall use its best efforts to actively and aggressively promote
and increase marketing, sale and use of the Products in and throughout the
Territory by all legal and ethical means, including:

(a) Identify and negotiate an agreement with local companies who will act as
investors and service providers ("Service Provider") in the Territory for the
Products, and

(b) Identify and negotiate an agreement with major clients for Service Provider
in the Territory.

5. CONTRACT TERMS

Telematics will have exclusive responsibility to determine the contractual terms
and conditions to be included in all sales contracts with the Service Provider.
No order or contract will be binding on Telematics until accepted in writing by
Telematics.

6. COMPETITIVE PRODUCTS

During the "Term" pursuant to Section 18(a) hereof and any renewal term and for
one year thereafter, Representative shall not advertise, sell, offer for sale,
promote or otherwise deal in any goods or merchandise similar to, or used as a
substitute for, or in competition or conflict of interest with, the Products,
unless Representative shall first have obtained the written consent of
Telematics to do so.

7. REPRESENTATIVE'S CONDUCT

Representative represents that it is free to contract with Telematics to perform
the services contemplated by this Agreement and that contract or performance
hereunder will not violate any agreement, fiduciary obligation, or restriction
to which Representative may be subject. Representative agrees to conduct its
activities under this Agreement in accordance with all

                                       2

applicable laws and regulations including, without limitation, registration of
this Agreement, if required. Breach of this provision shall be grounds for
immediate termination of this Agreement for cause and shall result in forfeiture
of compensation otherwise payable hereunder.

For the avoidance of doubt, Representative has been providing Vision Plant, a
Service Provider, with advice, consultation, guidance, assistance and service on
a personal and informal basis on grounds of Representative's relationship with
certain shareholder of Vision Plant (such advice, consultation, guidance,
assistance and service provided to Vision Plant are hereinafter collectively
referred to as "Vision Plant Services"). Telematics hereby acknowledges and
agrees that (1) Telematics is fully informed of the nature of the Vision Plant
Services, (ii) provision of Vision Plant Services does not constitute a breach
of this Section 7 or any other provision of this Agreement and (iii) Telematics
shall not assert any claims or proceedings against Representative on any grounds
for or in connection with Vision Plant Services. Representative will, upon prior
consent from Telematics, continuously provide such advice, consultation,
guidance and assistance to Vision Plant.

8. REPORTS

Representative shall furnish Telematics with reports as requested by Telematics
from time to time, which shall contain information with respect to its marketing
activity.

9. REPRESENTATION

Representative shall refrain from making any representation or warranty with
respect to the Products other than those contained in the standard warranty
provided by Telematics.

10. SUB-AGENTS

Representative shall not appoint any distributors, agents or delegates or assign
any part of its obligations or functions hereunder without first obtaining
Telematics' consent thereto.

11. SALES MATERIALS

From time to time, Telematics will furnish to Representative such demonstration
equipment and such printed materials pertaining to the Products as Telematics,
in its absolute discretion, deems appropriate, including, but not limited to,
catalogs, advertising literature, technical information, and brochures
describing the products and other sales information (the "Materials").
Representative will not distribute or deliver to customers any printed Materials
pertaining to any Product which is not furnished or approved by Telematics.

12. COMPENSATION

(a) Service Fee: Representative shall be entitled to a non-refundable cash fee
equal to ten (10) percent of any installments, paid to Telematics on
Infrastructure Equipment, Licensing, Consulting, and Maintenance and Support
sold by Telematics as a result of Representative's efforts and delivered to a
customer in the Territory within the Term of this Agreement. Representative
shall also be entitled to five (5) percent of any and all installments paid to

                                       3

Telematics on End User Equipment sold by Telematics to the above mentioned
customer in the Territory within the Term of this Agreement.

(b) Payment: The compensation regarding Infrastructure Equipment, Licensing,
Consulting, and Maintenance and Support will be paid within 30 days following
the receipt of respective payment by Telematics from the Service Provider to the
Representative's nominated account. The compensation regarding End User
Equipment will be based on the total number of units sold per quarter and will
be paid within 30 days from the end of each quarter (March 31, June 30,
September 30, and December 31) to the Representative's nominated account.

If Telematics receives an advance, down payment, payment for partial shipment,
partial payment for the sale of Infrastructure Equipment, Licensing, Consulting,
and Maintenance and Support or progress payment, Representative shall be
entitled to a compensation for its corresponding (pro-rata) share.

If termination of this agreement does not occur as a consequence of any of the
events described in the Section 18(b), Representative shall receive its
compensation for those orders placed prior to the date of termination. The
applicable compensation will not be earned until the customer has paid
Telematics for the Product. The compensation will be based on the F.O.B. "Net
Invoice Price" of the Product, i.e., on the price received by Telematics from
the customer.

(c) Taxes: Each Party shall be responsible for all taxes, duties and charges
assessed upon it in connection with any payment from Service Provider or the
other Party.

13. REPRESENTATIVE'S EXPENSES

Each party shall bear its own expenses incurred in connection with this
Agreement and the implementation of the activities and duties contemplated
hereby.

14. USE OF TRADE NAMES AND SIGNS

(a) Use: Representative agrees to market all Products covered by this Agreement
under the regular trade names and brands used on such goods by Telematics,
unless otherwise agreed upon in writing by Telematics.

(b) Ownership: Telematics is the owner of all trademarks, service marks and
other word and design marks used in connection with the Products. Representative
acknowledges Telematics' ownership and right to control the use and display
thereof by Representative.

(c) Limitation: Representative is granted the privilege of displaying such
trademarks and service marks in connection with the selling of the Products;
provided, however, Representative shall immediately discontinue the display or
rise of any such mark or change the manner in which any such mark is displayed
or used when requested to do so by Telematics or upon termination of this
Agreement.

(d) Protection: Representative further agrees to protect the trade names,
trademarks and service marks used by Telematics.

                                       4

(e) Remedies: If Representative shall refuse or neglect to keep and perform any
of the provisions of this Article 14, Representative shall reimburse Telematics
for all costs, attorneys' fees and other expenses incurred by Telematics in
connection with legal action to require Representative to comply therewith.

15. RELATIONSHIP OF PARTIES

There shall be no employer-employee relationship between Telematics and
Representative. Representative is an independent contractor acting for its own
account, his employees are in no way the employees of Telematics for any purpose
whatsoever and have no right or authority to assume or create, in writing or
otherwise, any obligation of any kind, express or implied, in the name or on
behalf of Telematics.

16. CONFIDENTIAL INFORMATION

All price information and quotations regarding Products, customer lists and
customer names which now or hereafter are in Representative's possession, and
engineering data and application notes and other technical information which are
furnished by Telematics to Representative shall be deemed to have been furnished
in confidence and for use by Representative only in connection with this
Agreement. Representative will take all steps necessary to hold all the
foregoing information in confidence and to prevent the disclosure thereof to any
third party without the prior written direction of Telematics. All such data and
information will remain the property of Telematics and, upon the expiration or
termination of this Agreement, will be returned to Telematics or, at Telematics'
election, destroyed.

17. FORCE MAJEURE

Each party shall use its best efforts to perform its obligations under this
Agreement, but shall be excused for failure to perform or for delay in
performance hereunder due to causes beyond its reasonable control.

18. TERM/TERMINATION

(a) Term: This Agreement shall, except as otherwise provided herein, be for a
period beginning on the date first stated above and ending 12 months of the
signature thereof unless a definitive agreement is executed between Telematics
and Service Provider within this period. Upon the execution of such a definitive
agreement, this agreement shall be automatically extended for the duration of
Telematics' agreement with the Service Provider, including any and all
extensions of the agreement thereafter.

(b) Termination: Notwithstanding Section 18(a), and during the Term and any
renewal thereof, this Agreement may be terminated: (i) on 30 days' written
notice if the other party shall breach any material provision hereof and fails
to cure such breach during the 30-day notice period; (ii) immediately in the
event the other party ceases to function as a going concern, ceases to conduct
its business in the normal course, a receiver is appointed or applied for with
respect to the other party or its property, a petition in bankruptcy is filed by
or against the other party, or it makes an assignment for the benefit of
creditors; or (iii) immediately by Telematics in the event

                                       5

Representative attempts to assign this Agreement or any rights hereunder without
Telematics' prior written consent.

(c) No Compensation: Telematics shall not be liable to Representative, by reason
of termination, expiration, or non-renewal of this Agreement, for compensation,
reimbursement or damages arising out of or connected with the loss of
prospective profits or anticipated sales or compensation or on account of
expenditures, leases or commitments in connection with the business or goodwill
of Representative, or for any other reason, any provision of any law to the
contrary notwithstanding.

However, in case, following the termination of this Agreement, Telematics
successfully completes a transaction, for which the completion is evidenced by
the execution of a definitive agreement, with any local company that
Representative has contacted, introduced, mediated and/or intermediated, within
24 months of the date of termination, Telematics shall pay the compensations
pursuant to Article 12.

(d) Subsequent Orders: The acceptance of any order through Representative after
the expiration or termination hereof shall not be deemed a renewal or extension
hereof nor a waiver of expiration or termination; however, such order shall be
governed by and handled in accordance with all the terms, conditions and
limitations contained in this Agreement as if this Agreement had not been
terminated.

19. MISCELLANEOUS

(a) No Waiver: The failure of either party hereto to enforce at any time or for
any period any right or provision hereof in accordance with its terms shall not
be construed as a waiver of such right or provision.

(b) Agreement: This Agreement contains the entire agreement between the parties
respecting the subject matter hereof, and supersedes and replaces all previous
agreements, understandings, commitments or arrangements, oral or written, with
respect thereto. This Agreement may not be modified except by an instrument in
writing executed by both parties.

(c) Severability: Any provision of this Agreement which is prohibited by, or
unlawful or unenforceable under any applicable law of, any jurisdiction will be
ineffective as to such jurisdiction without affecting any other provision of
this Agreement. To the full extent, however, that the provision of such
applicable law may be waived, they are hereby waived, to the end that this
Agreement shall be deemed to be a valid and binding Agreement enforceable in
accordance with its terms. In addition, the parties hereto hereby agree to
cooperate with each other and to replace the unlawful provision with a lawful
provision which will achieve the same economic result as the provision
determined to be unlawful.

(d) Assignment: Neither party may assign this Agreement to a third party without
the prior written consent of the non-assigning party.

(e) Notices: All notices hereunder shall be in writing and sent to the address
set forth above (or to such changed address as shall be notified to the other
party in writing pursuant hereto) by registered mail, and shall be deemed to be
given on receipt.

                                       6

(f) Governing Law: This Agreement and any and all disputes among the parties
arising from this Agreement shall be governed in all respects by the laws of the
United Kingdom of Great Britain and Northern Irelands.

(g) Headings: The heading contained herein are for the ease of reference only
and shall not affect the interpretation hereof.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized representatives.

For and on behalf of:

TELEMATICS WIRELESS LTD.

/s/ Kafry Eddy
--------------------------------
Eddy Kafry
President & CEO

Accepted and agreed for and on behalf of

KOREA INTEGRATED SERVICES CO., LTD.

/s/ Tiger Kim
--------------------------------
Tiger Kim
President & CEO

                                       7

[KLIC Letterhead]

Chi-Young Kwack
6th Fl., Seoul Center Building, 91-1 Sogong-dong,
Chung-gu, Seoul, Korea 100-070

April 1, 2005

Mr. Eddy Kafry & Mr. Roman Sternberg
Telematics Wireless Ltd.
26 Hamelacha Street,
P.O.B. 1911 Holon, 58117 Israel

NOTICE OF AGREEMENT TRANSFER

Dear Sirs:

Korea Location Information & Communications Co. Ltd (hereinafter referred to as
"KLIC") was established on the 23rd day of February 2005, as the Operation
Company referred to in ARTICLE 23 of the LICENSE AND SUPPLY AGREEMENT for RADIO
LOCATION SYSTEM between VISION PLANT INC. (hereinafter referred to as "VPI") and
TELEMATICS WIRELESS LTD. (hereinafter referred to as "TW") dated August 31, 2004
(hereinafter referred to as "Agreement"), and that the Ministry of Information
and Communications of the Korean Government granted the business license to
"KLIC" on the 30th day of March 2005.

KLIC duly accepts all the rights and obligations of "VPI" under the "Agreement".

Please be noticed that all the rights and obligations of "VPI" under the
"Agreement" shall be transferred to and assumed by "KLIC" by this notice,
pursuant to ARTICLE 23 of the "Agreement".

For and on behalf of "KLIC"

--------------------------/     /     /    /

Chi-Young Kwack

Chairman & CEO

[KLIC Letterhead]

"VPI", as the original party of the "Agreement", confirms that "KLIC" is the
"Operations Company" intended in ARTICLE 23 of the "Agreement", and that its
statements regarding its establishment and business license are true.

"VPI" hereby acknowledges that all the rights and obligations of "VPI" under the
"Agreement" has been transferred to "KLIC" by its formal acceptance.

For and on behalf of "VPI"

--------------------------/     /     /    /

Chi-Young Kwack

Chairman & CEOEXHIBIT 10.15

                                        CONFIDENTIAL TREATMENT REQUESTED.
                                        CONFIDENTIAL PORTIONS OF THIS DOCUMENT
                                        HAVE BEEN REDACTED AND HAVE BEEN
                                        SEPARATELY FILED WITH THE COMMISSION.

                                    AGREEMENT

                                 BY AND BETWEEN;

                    GOLDEN NET COMMUNICATION TECHNOLOGY LTD.

                                    ("BUYER")

                                       AND

                        DIGITRACK (CHINA) GROUP CO. LTD.

                                    ("AGENT")

                                     - AND -

                            TELEMATICS WIRELESS LTD.

                                  ("SUPPLIER")

                         FOR THE SUPPLY OF ITURAN RADIO
                                 LOCATION SYSTEM

                                IN GREATER CHINA

                                   AGREEMENT

This Agreement is made this ___ day of _______, 2004 between the Chinese company
Golden Net Communication Technology Ltd. (hereinafter referred to as "Buyer"),
having its registered office at C-209, 25 Fuxing Road, Zhongguancun Science
Park, Beijing, P.R. China, the Hong Kong company Digitrack (China) Group Co.
Ltd. (hereinafter referred to as "Agent"), having its registered office at Shop
55 2/F Lever Building 33, Larch Street Tai Kok Tsvi Kowloon, and the Israeli
company under the name Telematics Wireless Ltd. (hereinafter referred to as
"Supplier"), having its registered office at 26 Hamelacha st., Holon, Israel.

WHEREAS, Buyer is in the business of terrestrial location and monitoring,
intelligent transportation management, development of computer hardware and
software system, and remote meter reading in Greater China, including China
Mainland, Hong Kong, Macau and Taiwan and has obtained a Spectrum License
ranging 835-837 MHz, as well as 280.1625 MHz in China Mainland for operation of
a land-based radio location system, i.e. Ituran System, and

WHEREAS, Buyer wishes to set up in the Region a system of wireless exchange of
messages, between mobile units and stationary units with an identification of
the mobile unit's locations. This system is named Ituran system, using Direct
Sequence Spread Spectrum and other technology for communication and Differential
Time of Arrival (DTOA) technology for location (technical description of Ituran
system is specified in ANNEX IV), and

WHEREAS, with the Effective Date of September 1st, 2004, NCC (Network Control
Center) and 10 Base Stations of first such system should be deployed in Shanghai
area with initial demonstration capability not later than May 31st, 2005, and

WHEREAS, Supplier is in the business of supplying turn-key projects of Ituran
system including, but not limited to, the training of personnel (Tasks of the
turn-key projects are specified in ANNEX V) and is the sole supplier of base
stations and end units for the system; Supplier choose Buyer or related
companies that have major participation from Buyer as the sole user of the
technology of such System in the Region; The special equipment supplied by
Supplier in the People's Republic of China shall only be operated in the
frequencies between 835-837MHz as well as 280.1625MHz; and

WHEREAS, Supplier developed base stations, vehicular units and personal or cargo
location units for receiving and transmitting messages and identification of the
units' location and is in the business of manufacturing, supplying and
supporting of such Components; and

WHEREAS, the System special equipment have been developed by Supplier. The
special equipment for the System shall be manufactured by Supplier or its sub -
contractors. Supplier shall retain the title and ownership of the intellectual
property rights or know-how relating to the special equipment of the System, and
possesses licenses for other components of the System. Supplier acknowledges
that the System shall be operated within the frequencies ranging 835-837 MHz as
well as 280.1625 MHz in the People's Republic of China; and

WHEREAS, Buyer acknowledges the specific spectrum characteristics of the System
(as specified in ANNEX III), and will be responsible for its acceptance by the
authorities, and

                                       2

WHEREAS, Buyer has the ability to finance the deployment of the System in the
Region and to establish a service provider company to commercially operate the
System, and to provide qualified and skilled personnel; and has the ability and
personnel to manage and supervise the operation of the System in the Region; and

WHEREAS, Supplier wishes to associate with Buyer and to provide to the Buyer the
CONTRACTUAL ITEMS as described herein, relying exclusively on the terms and
conditions of this AGREEMENT and its ANNEXES which shall constitute an integral
part thereof; and

WHEREAS, Agent acts as an exclusive agent for Supplier's technologies in the
Region.

NOW THEREFORE, in consideration of the mutual promises, covenants, and
conditions herein contained, Buyer, Agent and Supplier agree as follows:

                         AGREEMENT TERMS AND CONDITIONS

ARTICLE 1 DEFINITIONS

The following terms shall have the meaning that is provided hereunder (it is
understood that other terms and acronyms / abbreviations may be additionally
defined in other locations of this Agreement):

--------------------------------------------------------------------------------
TERM                               DEFINITION OF TERM
--------------------------------------------------------------------------------
THE TERRITORY                      China Mainland
--------------------------------------------------------------------------------
THE REGION                         The state of P.R. China including China
                                   Mainland, Hong Kong, Macau and Taiwan
                                   (Greater China).
--------------------------------------------------------------------------------
PROJECT INITIATION AGREEMENT       The contract executed between the Parties for
                                   the implementation of the Ituran Ratio
                                   Location System in the Territory.
--------------------------------------------------------------------------------
SPECTRUM LICENSE                   Spectrum License ranging 835-837 MHz, as well
                                   as 280.1625 MHz for operation of a land-based
                                   radio location system in the People's
                                   Republic of China.
--------------------------------------------------------------------------------
LICENSES                           SPECTRUM LICENSE and all other permits,
                                   licenses and authorisations needed to execute
                                   this AGREEMENT in the REGION.
--------------------------------------------------------------------------------
BUYER                              Golden Net Communication Technology Ltd.
--------------------------------------------------------------------------------
AGENT                              Digitrack (China) Group Co. Ltd.
--------------------------------------------------------------------------------
SUPPLIER                           Telematics Wireless Ltd.
--------------------------------------------------------------------------------

                                   3

--------------------------------------------------------------------------------
TERM                               DEFINITION OF TERM
--------------------------------------------------------------------------------
AGREEMENT                          This Agreement signed this _day of _______,
                                   2004 between the Buyer, the Agent and the
                                   Supplier inclusive of its Articles and
                                   Annexes which shall constitute an integral
                                   part thereof.
--------------------------------------------------------------------------------
                                   This is the entire, complete and operational
                                   system of wireless exchange of messages,
                                   between mobile units and stationary units
                                   with an identification of the mobile unit's
                                   locations.

                                   The system shall consist of components,
                                   including but not limited to, mobile units,
                                   receiving base stations, a control center,
                                   paging units, terrestrial communication lines
                                   management organization and logistic control.

                                   This system includes the following separate
                                   SYSTEMS:

ITURAN RADIO LOCATION SYSTEM
(SYSTEM)                           a. Base Stations- for receiving and
                                   processing of the Vehicle Location Units and
                                   Personal Alarm and Locator transmissions.

                                   b. Vehicle Location Units- vehicular units
                                   for receiving and transmitting messages and
                                   identification of the units' location

                                   c. Personal Alarm and Locator Units - persona
                                   units for receiving and transmitting messages
                                   and identification of the units' location.

                                   d. Control Center.

                                   (Technical description of the Ituran System
                                   is specified in ANNEX IV):
--------------------------------------------------------------------------------
ADVANCE PAYMENT                    The sum of 732,200USD to be paid by BUYER to
                                   SUPPLIER.
--------------------------------------------------------------------------------
LETTER OF CREDIT                   Letter of Credit issued by First Class
                                   International Bank for the total sum of the
                                   deployment cost less the Advance Payment.
--------------------------------------------------------------------------------
INTEGRATION                        The integration by the Supplier of the SYSTEM
                                   and the relevant parts and furthermore the
                                   participation and support by the Buyer, as
                                   described in ANNEX I of the Agreement, to the
                                   integration of the SYSTEM.
--------------------------------------------------------------------------------

                                   4

--------------------------------------------------------------------------------
TERM                               DEFINITION OF TERM
--------------------------------------------------------------------------------
PRODUCTS                           Any individual item specified to be
                                   delivered by the Supplier in accordance with
                                   the terms of this Agreement as part of the
                                   SYSTEMS including software and any spare
                                   parts that may be ordered by the BUYER and
                                   delivered to by the SUPPLIER, as further
                                   defined in ANNEX I.
--------------------------------------------------------------------------------
SERVICES                           All services that shall be provided by the
                                   Supplier under the terms of this Agreement,
                                   including the design, integration, the
                                   updating of software & hardware of the
                                   SYSTEM, and the training to the Buyer's
                                   personnel.
--------------------------------------------------------------------------------
CONTRACTUAL ITEMS                  All of the items provided by the Supplier to
                                   the Buyer in accordance with this Agreement
                                   (PRODUCTS, SERVICES, SYSTEM) as specified in
                                   this Agreement, as the object of the
                                   Supplier's contractual obligation.
--------------------------------------------------------------------------------
                                   Full System Delivery (FSD) means that upon
                                   acceptance of the full System as described
                                   in the SOW:

                                   o The SYSTEMS shall be fully functional,
                                   they shall satisfy the Specifications and
                                   requirements of the Agreement and they shall
                                   be ready for full operational use.

                                   o All the following have been completed:

                                        o program management,

Full system Delivery (FSD)              o the requirements of the SYSTEM
                                          including definition, engineering,
                                          adaptation, installation, integration,
                                          commissioning, certification of
                                          conformity, training and the
                                          fulfillment of Articles 7 and 8 of the
                                          Agreement and

                                        o all contractual documentation in
                                          English and the User training,
                                          operational and maintenance manuals in
                                          the English language.

                                        o All specified infrastructure and
                                          quantities of equipment, software and
                                          services according to Bill of
                                          Quantities have been delivered and
                                          installed.
--------------------------------------------------------------------------------
TECHNICAL DOCUMENTATION            The technical documentation/bibliography to
                                   be provided by the Supplier to the Buyer in
                                   accordance with Article 37.
--------------------------------------------------------------------------------
TRAINING                           The Supplier is obliged to train selected
                                   personnel of the Buyer.  This personnel shall
                                   have, following completion of the training
                                   program, the knowledge required to train the
                                   personnel of the BUYER in order to operate
                                   and maintain the SYSTEM.
--------------------------------------------------------------------------------

                                   5

--------------------------------------------------------------------------------
TERM                               DEFINITION OF TERM
--------------------------------------------------------------------------------
BUYER FURNISHED EQUIPMENT (FE)     The equipment to be furnished by the BUYER
                                   for the implementation of this Agreement as
                                   specified  in ANNEX I.
--------------------------------------------------------------------------------
BUYER FURNISHED INSTALLATIONS(FI)  The installations to be furnished by the
                                   BUYER for the implementation of this
                                   Agreement as specified in ANNEX I.
--------------------------------------------------------------------------------
BUYER FURNISHED SERVICES (FS)      The services to be furnished by the BUYER for
                                   the implementation of this Agreement as
                                   specified in ANNEX I.
--------------------------------------------------------------------------------
                                   The information to be furnished by the BUYER
                                   for the implementation of this Agreement as
                                   specified in ANNEX I.

BUYER FURNISHED INFORMATION (Fl)   FOR THE PURPOSES OF THE ABOVE DEFINITIONS;
                                   I.E. FE, FI AND FS THE TERM BUYER SHALL
                                   INCLUDE BUYER'S SUBCONTRACTORS AND
                                   SUPPLIERS.
--------------------------------------------------------------------------------
DEFECTS                            Any defect that concerns the material and/or
                                   the workmanship of the PRODUCTS or/and the
                                   SYSTEM which causes operational
                                   noncompliance with the specifications of the
                                   system.
--------------------------------------------------------------------------------
MINOR DEFECTS                      A DEFECT that has been identified, prior to
                                   the date of FINAL ACCEPTANCE, and is minor
                                   and not so serious as to prevent the BUYER
                                   from accepting the SYSTEM.
--------------------------------------------------------------------------------
WARRANTY OF GOOD OPERATION         Means the warranty of the PRODUCTS to be
                                   provided by the Supplier in accordance with
OR WARRANTY                        the terms of ARTICLE 11 herein for a period
                                   of one (1) year following the Final
OR WARRANTY OBLIGATION             Acceptance.
--------------------------------------------------------------------------------
SPARE PARTS AVAILABILITY           Means that the Supplier shall for a period
                                   of seven (7) years from the date of FINAL
                                   ACCEPTANCE, have available all spare parts
                                   required in accordance with the provisions
                                   of ARTICLES 11 and 41.3.
--------------------------------------------------------------------------------
                                   Shall be completed with the issuance by the
                                   BUYER of the certification of completion of
                                   FAT - as notified to the Buyer by the
                                   Customer - following the successful
FINAL ACCEPTANCE                   completion of the Processes and Final
                                   Acceptance Tests performed on the fully
                                   completed system in accordance with ARTICLE 8
                                   and based on the principles as outlined in
                                   ANNEX II or upon the fulfillment of the
                                   conditions provided in ARTICLE 8.1.2.ii
                                   hereto.
--------------------------------------------------------------------------------

                                   6

--------------------------------------------------------------------------------
TERM                               DEFINITION OF TERM
--------------------------------------------------------------------------------
PARTY/PARTIES                      The parties of the present Agreement, i.e.,
                                   BUYER, AGENT and SUPPLIER.
--------------------------------------------------------------------------------

1.1 Any term not specified in this present Agreement shall have the meaning
provided for this term by the existing stipulations of United Kingdom Law.

1.2 The Parties to this present AGREEMENT shall be bound only by the terms and
conditions of this AGREEMENT and its Annexes, which shall constitute an integral
part thereof.

ARTICLE 2 SUBJECT AND SCOPE OF THIS AGREEMENT

2.1 Pursuant to the stipulations, the terms and the conditions of this
Agreement, the Supplier undertakes the obligation to participate in a site
survey, design in detail, manufacture, install, test, complete, develop,
integrate, sell and deliver to the Buyer the SYSTEM, as specified in ANNEX I - X
(X defines the city or area, collectively referred to as ANNEX I) and provide
the SERVICES in accordance with ANNEX I as well as fulfill all of its
obligations as defined in this AGREEMENT. Supplier shall provide the Buyer with
a turn-key Project management, specific hardware and software manufactured by
Supplier and shall provide the engineering and technical planning and design of
the System and designate the qualified personnel to train and participate in the
establishment of the System as specified in this Agreement.

2.2 For clarification purposes, it is stated that the first stage of
implementation shall be the establishment of ten Base Stations in the TERRITORY,
as stated in ANNEX I.

2.3 The CONTRACTUAL ITEMS shall be delivered and installed by the Supplier to
the installations specified in the terms and conditions of this Agreement (ANNEX
I). The Buyer shall purchase the CONTRACTUAL ITEMS, exclusively from Supplier
during the entire period in which the Buyer will run the business and operation
of Vehicle and/or Personal Location in the Region. The CONTRACTUAL ITEMS,
supplied by Supplier in the Region shall be applied in the frequencies between
835-837 MHz as well as 280.1625 MHz.

2.4 The configuration and general technical description of the SYSTEMS are
specified in ARTICLE 5 - "SPECIFICATIONS" and in the respective ANNEX I and
ANNEX IV.

2.5 All PRODUCTS to be delivered to the Buyer shall, with the exception of their
operation for the performance of tests and training, be new, complete, have the
technology and construction

                                   7

defined in ANNEX I and shall be constructed from high quality, new, unused
material in accordance with the requirements of this agreement.

2.6 Buyer shall undertake to establish and finance the deployment and Operation
of the System in the Region. Upon the completion of the deployment System by
Supplier in accordance to this Agreement, the Buyer shall commercially operate
the System.

2.7 Supplier shall open all interface to the System to Buyer and provide the
technical specifications of the interfaces. Buyer will choose the software
developing company to develop the System application software adaptation to
Chinese market.

2.8 The Supplier states that it has the proper technological know how,
personnel, methodology, organizational skills, management and control of all of
the necessary detailed designs, and capabilities required for the execution of
the Agreement in accordance with the rules of "science and art" (state of the
art).

2.9 The BUYER states that it has the proper technological know how, personnel,
methodology, organizational skills, management, expertise and control of all of
the necessary capabilities required for the execution of the Agreement in
accordance with the rules of "science and art" (state of the art), including
without limitation the proper LICENSES.

ARTICLE 3 TERM OF THE AGREEMENT/EFFECTIVITY

3.1 This Agreement shall become effective at the date of September 1, 2004, or
at the date that the BUYER has submitted to the Supplier the ADVANCE PAYMENT,
whichever is later.

3.2 The LETTER OF CREDIT shall be submitted to the Supplier no later than
October 1, 2004. Any delay in the submission of LETTER OF CREDIT after this date
will cause corresponding delay in the Project Schedule.

3.3 After the Final Acceptance, this Agreement shall continue to be in force for
the fulfillment of the contractual obligations of the PARTIES which are related
to the Final Acceptance, i.e. WARRANTY, SPARE PARTS AVAILABILITY, MAINTENANCE,
OPTIONS, CONFIDENTIALITY, INTELLECTUAL PROPERTY RIGHTS, payments and until the
PARTIES has fully performed all of these obligations in accordance with this
Agreement, unless earlier terminated.

ARTICLE 4 PRICE, PAYMENT AND INVOICING REQUIREMENTS

4.1  Price.

4.1.1 The total amount of the price to be paid by the Buyer to the Supplier for
the fulfillment of the SUPPLIER's obligations under this AGREEMENT is described
in Appendix C of ANNEX I.

                                       8

4.1.2 The Price is calculated, among other, on the basis of the Bill of
Quantities defined in ANNEX I i.e. unit prices multiplied on the basis of
quantity supplied; plus the lump sum for the provision of the items specified as
"lump sum items", as stated in the Bill of Quantities in ANNEX I. Payment shall
be made in US Dollars.

4.1.3 It is further clarified that the lump sum for the items specified as "lump
sum items" IN Appendix C of ANNEX I, shall remain constant and unchanged
throughout the duration of the AGREEMENT, irrespective of the increase or
decrease of the CONTRACTUAL ITEMS.

4.1.4  The Price, as defined above, is FOB Tel -Aviv Israel.

4.2  Payment Terms

4.2.1 The Buyer shall pay the Price to the Supplier through the Agent in
accordance with the terms and conditions set forth in Appendix C of ANNEX I.

4.2.2 The dates referred herein above (paragraph 4.2.1) relate to the issuance
of an invoice by the supplier. The payment shall take place 7 days after the
issuance of the invoices.

4.2.3 A fourteen (14) days delay by the Buyer in the scheduled payment dates is
considered as an excusable delay to accommodate fixed scheduled payment dates of
the Buyer.

4.3 Income Tax. The Supplier and its subcontractors shall pay their
corresponding income tax in accordance with the provisions of the Israeli Law or
the applicable bilateral agreements for the avoidance of Double Taxation, as the
case may be. All payments to Supplier shall be free of any deduction for
withholding taxes that apply to payments from Buyer to Supplier.

4.4 Except the Advance Payment, payment to the Supplier shall be made through
Letter of Credit (LOC) issued by First Class International Bank for the total
sum of the deployment Cost less the Advance Payment. The LOC will be provided no
later than thirty (30) days after the Effective Date. The content of this LOC
will include the payment terms as specified in Appendix I of ANNEX I.

4.5 Reconciliation of Accounts. Within ONE (1) month from the fulfillment of the
Final Acceptance, the final account reconciliation for the delivered CONTRACTUAL
ITEMS shall be performed. If a difference exists between the amount of the final
account reconciliation and the Price of this Agreement corresponding to the
obligations of the Supplier related to the Final Acceptance, this difference
shall be resolved within one (1) month from the final account reconciliation, as
follows:

(i) if the difference is in favor of the Buyer, by payment of this difference in
cash by the Supplier in accordance with the Buyer's written instructions.

(ii) if the difference is in favor of the Supplier, by payment of this
difference in cash by the Buyer in accordance with the Supplier's written
instructions.

                                       9

On completion of the final account reconciliation, the Buyer and the Supplier
shall sign a certificate stating that neither party has any claims with regard
to the payment of the Price under this Agreement.

ARTICLE 5 SPECIFICATIONS

The CONTRACTUAL ITEMS to be delivered by the Supplier to the Buyer in accordance
with this Agreement shall be new, fully compatible and inter operational between
them and in accordance with ANNEX I. Detailed System specifications will be
submitted at PDR in accordance with ANNEX I.

ARTICLE 6 SPECIFICATION AMENDMENTS

6.1 No modification to the specifications is allowed unless otherwise agreed
between the Parties.

6.2 If the Supplier, during the implementation of the Agreement, discovers that
its technical solution does not conform to the operational specifications
described in ANNEX I, the Supplier shall notify the Buyer in writing, specifying
the details of the non conformance.

6.3 In this event, the Supplier shall be obliged to propose for acceptance to
the Buyer, a respective modification of the specifications of the SYSTEM or part
of them, so as for the requirements of the operational, specifications that are
described in ANNEX I are fulfilled. No modification shall influence the agreed
project schedule (as specified in Appendix B of ANNEX I). Buyer shall provide to
the Supplier approval or comments forthwith upon the approval or comments. The
modifications proposed by the Supplier should be free of charge. The Supplier
shall bear all the expenses incurred by the modifications. If the System fails
to come into proper operation at the time specified in ANNEX I, the Supplier
shall compensate the Buyer a sum equal to zero point one percent (0.1%) of the
price of the subject of this Agreement for every delay of one day after the
grace period of 60 days up to the maximum level of 10%, if Buyer at its own
discretion demands to do so.

6.4 In the event Buyer requires modification of the operational specifications
of the SYSTEM or part of them during the deployment of the SYSTEM, Supplier
shall present the cost for the implementation and incorporation of modifications
asked by Buyer, taking into consideration the timeframe. The cost in this case
shall be borne by the Buyer, if he chooses to do so and timeframe shall be
adjusted accordingly.

6.5 Following the agreement for the acceptance of the specifications'
modification, the procedures for the amendment of the Agreement shall be in
accordance with ARTICLE 40 - "AMENDMENTS OF THE AGREEMENT".

                                       10

ARTICLE 7 ACCEPTANCE PROCEDURES

7.1 The Final Acceptance of the SYSTEM shall be deemed to be effected in
accordance with the terms and provisions of this article and of article 8 and in
accordance with the principal guidelines defined in ANNEX II. The detailed Final
Acceptance Procedures will be provided on CDR. The Supplier shall enable the use
of the SYSTEM by the Buyer for testing procedures in accordance with the
timetable provided in ANNEX I of this AGREEMENT. The Supplier shall perform the
testing procedures in accordance with the Supplier's internal procedures and the
Completed Acceptance Plan of the SYSTEM, as provided in ANNEX II of the
AGREEMENT. A copy of the Completed Acceptance Plan of the SYSTEM regarding the
testing procedures shall be drafted and submitted by the Supplier to the Buyer
at least thirty (30) calendar days prior to the dates the testing procedures are
scheduled to take place. The acceptance test principles are described in ANNEX
II of this Agreement.

7.2 The Buyer shall be responsible for a proper number of authorised personnel
to participate in the acceptance procedure.

7.3 If the tests performed during the application of the Complete Acceptance
Plan for the acceptance of the SYSTEM are not successful according to the
Complete Acceptance Plan, these tests shall be repeated immediately and within
the timetable defined in the Complete Acceptance Plan, until they are completed
successfully. The Supplier shall repair malfunctions and/or failures/DEFECTS,
which may occur in the SYSTEM observing however the delivery timetable of this
Agreement.

7.4 The acceptance procedure shall be completed as soon as the following are
achieved:

(i) The tests for the SYSTEM have been completed by the PARTIES, through the
signature of the System Acceptance Report ("SSAR").

(ii) Every and all of the materials, equipment and other items provided in the
Bill of Quantities have been delivered, installed and tested for each one of the
SYSTEM,

(iii) The training has been completed and the BUYER's trainees have been
certified with the Certificate of Training for the operation and maintenance of
the SYSTEM.

(T) All of the written documentation has been delivered to the Buyer.

ARTICLE 8  DELIVERY-ACCEPTANCE-TRANSFER OF OWNERSHIP - RISK OF LOSS OR DAMAGE

DELIVERY-ACCEPTANCE

8.1.1 The Supplier shall deliver the SYSTEM, ready for operational use, and in
accordance with the timetable of this Agreement.

                                       11

8.1.2 (i) The SYSTEM shall be accepted by the BUYER after the final acceptance
tests have been successfully completed.

(ii) In the event that the BUYER has not sent to the Supplier, any written
notice regarding a DEFECT or non successful Final Acceptance Test, as defined in
Article 7 above and in ANNEX II, then the SYSTEM shall be deemed to have
achieved Final Acceptance for the purposes of this Agreement and shall be
considered to have been accepted by the Buyer within thirty (30) days after the
successful final acceptance tests of the SYSTEM. The Supplier is considered to
have fulfilled all contractual obligations related to the delivery of the SYSTEM
and shall have the right to receive the respective final payment.

(iii) In the event that the BUYER has sent to the Supplier, a written notice
regarding a DEFECT or non successful Final Acceptance Test, as defined in
Article 7 above and in ANNEX II, then the Supplier shall take measures to insure
that the SYSTEM will commence operating at the time specified in ANNEX I. If the
System fails to come into proper operation at the time specified in ANNEX I
because of such DEFECT, the Supplier shall compensate the Buyer a sum equal to
zero point one percent (0.1%) of the price of the subject of this Agreement for
every delay of one day after the Grace Period of 60 days up to the maximum level
of 10%, if the Buy at its own discretion demands to do so.

8.1.3 All CONTRACTUAL ITEMS shall be delivered in accordance with the terms and
conditions specified in this Agreement.

8.1.4 The Supplier shall be responsible for the whole process of the training.
Supplier and Buyer will jointly decide on whether the training having been
provided properly via examinations on both knowledge and operation, which will
be supervised by the representatives respectively designated by the Supplier and
the Buyer. The training shall be considered to have been provided properly, upon
the issuance and execution by the Supplier of a CERTIFICATE certifying that the
training has been completed and provided in accordance with the terms and
conditions of this present Agreement. The trainees shall get the CERTIFICATE
only after passing the strict examinations.

TRANSFER OF OWNERSHIP -- SERVICES PROVIDED

8.2 The transfer of ownership from the Supplier to the Buyer of the SYSTEM shall
be completed upon fulfillment of the conditions of Article 8.1.2 (ii) or as
otherwise may be agreed to by the Parties in writing.

8.3 The Parties agree that the Buyer shall not have the right to use the SYSTEM,
unless the Buyer has paid the Supplier the amount of the Price defined in
article 4.2.1, subject to the terms of article 4.

8.4 The Supplier, upon the date of fulfillment of the conditions of Article
8.1.2(ii) or as otherwise may be agreed to by the Parties in writing, shall
transfer to the Buyer the ownership of all CONTRACTUAL ITEMS, free from DEFECTS,
any claims of third parties, liens, encumbrances and other legal defects.

                                       12

RISK OF LOSS OR DAMAGE

8.5 All risks of loss or damage to the PRODUCTS shall be transferred from the
Supplier to the Buyer on FOB basis, unless otherwise agreed to by the Parties in
writing.

8.6 In the event of loss or defect of a PRODUCT, prior to the transfer of its
risk of loss and damage in accordance with this article, the Supplier shall be
required to replace it with a new one, at its own expenses.

ARTICLE 9 ADVANCE PAYMENT AND LETTER OF CREDIT

The Buyer shall submit to the Supplier an Advance Payment and Letter of Credit
issued by First Class International Bank in accordance with ANNEX I.

ARTICLE 10 QUALITY ASSURANCE

10.1 The Supplier is ISO 9001 certified? and shall implement a quality assurance
system during the implementation of the Agreement.

10.2 The CONTRACTUAL ITEMS shall be accompanied at the time of their delivery by
a Certificate of Conformance to the requirements of the Agreement, which will be
issued and signed by the Supplier.

10.3 All quality assurance certificates related to the CONTRACTUAL ITEMS shall
be in accordance with the Quality Plan. The aforementioned certificates shall
certify that the Supplier is in conformance with the requirements of contractual
terms and the specifications in accordance with ISO 9001.

ARTICLE 11 WARRANTY

11.1 The Supplier shall provide, for the PRODUCTS a warranty for a period of one
(1) year from the Final Acceptance.

11.2 In the event that, during the warranty period, any DEFECT of material,
hardware or software of all PRODUCTS may appear, which is capable of affecting
the operation of the SYSTEM by the Buyer, and for which DEFECT the Supplier is
responsible in accordance with the terms and conditions of this present ARTICLE,
the following shall apply:

i. The BUYER shall send the defective PRODUCT/Part to the SUPPLIER. SUPPLIER
shall repair or replace the defective material or PRODUCT hardware and send it
back to the BUYER. All transportation and packaging costs shall be borne by the
SUPPLIER.

ii. SUPPLIER shall repair or replace the defective software, at its own
expenses.

iii. The warranty period of any defective material, hardware or software
replaced by the SUPPLIER shall be one (1) year after the new material, hardware
or software is received by the BUYER; SUPPLIER shall extend the warranty period
of the repaired defective material,

                                       13

hardware or software for a time period equaling to the time required to restore
the operation of the PRODUCT/Part.

11.3  Throughout the warranty period, the following must be observed:

A. The notification of the Supplier by the Buyer, for any appearance of material
defect of material, hardware or software, which is covered by this warranty, by
sending a written Event Report to the Supplier immediately after the defect's
detection.

B. The obligation of the Buyer to avoid further use of the defective item
immediately after the defect's detection, in order to avoid further damage to
the related SYSTEM.

C. The compliance with the Supplier's written and/or oral directions for the
measures the Buyer must take until operations are restored, in accordance with
the specifications.

11.4 Ownership of every of material, hardware or software, replaced in
accordance with the terms of the Warranty shall be transferred to the SUPPLIER.
Every item repaired within the frame of the warranty shall be covered under the
warranty until the end of the initial warranty period or of its extension in
accordance with Article 11.2 (c).

11.5 The PRODUCTS shall be stored, used, tested/ inspected and placed in
operation in accordance with the Technical Manuals and all other written
instructions issued by the Supplier.

11.6 The Warranty provided by the Supplier shall not cover defects resulting
from:

A. Damages or malfunctions caused by the use of unauthorized individuals, bad
use or non compliance or non-conformity with the Supplier's written directions.

B. Damages or malfunctions caused by:

(1) Electric power overload, fire, (excluding fire caused by defect of material)
and / or force majeure;

(2) Improper storage;

(3) PRODUCTS that have been opened or dissembled by the Buyer, without the
Supplier's authorization for such action;

(4) Vandalism or other criminal activity of third parties.

11.7 This warranty also covers the cost of parts, materials, and mechanical
parts which have suffered damages of any nature exclusively due to the defective
CONTRACTUAL ITEM, and which damage was notified to the Supplier in a timely
manner, so that the SYSTEM may be returned to a state of full and proper
operation.

11.8 Within the warranty period the SUPPLIER shall provide the BUYER the
necessary spare parts free of charge. After the warranty period, the BUYER will
have the option to buy the above-mentioned spare parts or to return the spare
parts to the SUPPLIER.

                                     14

ARTICLE 12 MAINTENANCE

The Supplier shall provide to the Buyer the Maintenance Services up to the end
of Warranty Period, according to the terms and conditions stated in ANNEX I.
After the Warranty Period, the Supplier shall provide to the Buyer the
Maintenance Services according to the terms and conditions based on Maintenance
and Support Agreement to be signed between the Parties based upon ANNEX VI -
MAINTENANCE AND SUPPORT AGREEMENT PRINCIPLES.

ARTICLE 13 TRAINING

13.1 The Supplier is obliged to provide training in accordance with this
article, and ANNEX I to the trainees of the BUYER in the deployment,
integration, use and operation of the SYSTEM.

13.2 The Buyer, in order to facilitate the Supplier to fulfill its training
obligation as defined in paragraph 13.1 above and in ANNEX I, agrees to provide
to the Supplier the following services under the terms and conditions defined
herein below:

13.2.1. The Buyer shall designate the personnel to be trained by the Supplier.
The training shall be in the English language to the Buyer's designated trainees
as set forth in ANNEX 1. The training material which will be used during the
training shall be in the English language.

13.2.2. The Supplier will supply a training facility in Israel as required, in
accordance with ANNEX I.

13.3 Following the training to be provided by the Supplier to the personnel
designated by the Buyer, the latter will train the all of his additional
employees.

13.4 The personnel designated by the Buyer to act as instructors (after their
training) will have the responsibility to translate the training material to the
Chinese language.

English versions of the training material will be provided to the trainees with
the English one being the official.

13.5 The Supplier shall, at the end of each training course, provide a
Certificate of Successful Completion of Training to each trainee who
successfully completes the training course and passes the examinations
supervised by the Supplier and the Buyer together.

ARTICLE 14 INSURANCE

14.1 Notwithstanding any provision contained herein, any Party and its
employees, agents, representatives, consultants, subcontractors, and suppliers,
are not insured by the other Party, and are not covered under any policy of
insurance that the other Party has obtained or has in place.

14.2 The CONTRACTUAL ITEMS shall be insured against loss and damage during
transportation, at the Buyer's cost, for their full contract value. This
insurance shall cover all risks relative to the nature of the goods, including,
without limiting the generality of the foregoing, strikes.

                                       15

14.3 For the implementation of this Agreement, every Party and its
subcontractors shall have insurance coverage against general risks and civil
liability, which they usually conclude for their own protection. In addition,
they shall maintain the aforementioned insurance coverage in force until Final
Acceptance.

ARTICLE 15 INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS

15.1. Indemnity. Subject to Sections 15.3 below, Supplier will defend, indemnify
and hold harmless Buyer, and its directors, officers, employees and agents, from
and against any and all INTELLECTUAL PROPERTY RIGHTS claims, demands,
liabilities, actions, suits, proceedings (including reasonable attorneys' fees)
asserted by a third party arising out of or relating to Supplier's performance
under this Agreement, and Supplier agrees to undertake the cost of defending the
same, and will pay resulting costs and damages finally awarded, provided that:

15.1.1. Buyer promptly notifies Supplier of the claim;

15.1.2. Buyer cooperates with Supplier in the defense, provided that Supplier
reimburses Buyer for its reasonable out-of-pocket expenses (including reasonable
outside counsel legal fees) associated with such cooperation; and

15.1.3. Supplier has sole control of the defense and all related settlement
negotiations, using counsel reasonably satisfactory to Buyer.

15.2. Supplier's Obligations Regarding Infringement Claims. No warranty; Buyer
Due Diligence. Supplier represents and warrants to Buyer that as of the
Effective Date it has not been notified of any claim that Supplier's use of the
System violates the legally protected trade secret, proprietary right or other
interest of a third party, or infringes a patent, copyright or other
intellectual property right of a third party (a "Third Party Infringement
Claim"). Buyer acknowledges and agrees, however, that Supplier makes absolutely
no representation or warranty regarding Third Party Infringement Claims arising
from Buyer's use of the System in the Territory. Supplier strongly encourages
Buyer to conduct copyright searches and other appropriate due diligence, in the
Territory to ensure that Buyer's use of the System in the Territory will not
result in a Third Party Infringement Claim. Buyer acknowledges and agrees that
it is assuming all risk and liability that a Third Party Infringement Claim may
result from Buyer's use of the System in the Territory.

15.3. Third Party Infringement Claims. If a Third Party Infringement Claim
occurs as described in Clause 15.1 above with respect to one or more elements of
the System, or in Supplier's opinion is likely to occur, Supplier will use
reasonable efforts, at its option and expense, either to challenge such Third
Party Infringement Claim or otherwise procure for Buyer the right to continue to
use, maintain and provide support for the System, or to replace or modify the
alleged infringing element so that such element becomes non-infringing, provided
that such replacement or modification does not materially affect performance of
the System.

                                       16

ARTICLE 16 TIMETABLE FOR THE IMPLEMENTATION OF THE AGREEMENT - PROGRESS REVIEWS
- MONITORING / REVIEW COMMITTEES TIMETABLE FOR THE IMPLEMENTATION

16.1 The timetable for the implementation of this Agreement, based on which the
CONTRACTUAL ITEMS, are provided to the Buyer is included in ANNEX I.

16.2. The Agreement shall become effective in accordance with ARTICLE 3 "TERM OF
THE AGREEMENT/EFFECTIVITY" and the timetable mentioned in Article 16.1 is
calculated from the effective date of the Agreement.

PROGRESS REVIEWS

16.3 The Supplier shall meet with the Buyer to review the progress of the
Agreement implementation. The scheduled meetings shall be a means of
communication with the Buyer to examine the agenda issues which have been agreed
upon or those for which the Buyer shall be required to be briefed on from time
to time.

16.4 The Supplier shall submit specific issues of the agenda prior to the
scheduled review meeting. The Agenda issues shall cover, inductively, but not
limited to, issues of the development for specific CONTRACTUAL ITEMS, design and
production reviews, modifications, contractual and logistics issues, possibly
requested tests, financial issues and deliveries. The Buyer must respond within
seven (7) calendar days from receipt of the aforementioned issues. The Buyer may
request modifications and / or additional items to be discussed, so that the
scheduled agenda shall include other issues under the condition that these
changes are included in the object of this Agreement.

16.5. The specific meeting dates and the location of the meetings shall be
agreed upon between the parties.

MONITORING OF THE IMPLEMENTATION OF THE AGREEMENT

16.6. The representatives of each Party shall adhere to the regulations and
limitations imposed by the other Party at the facilities where they shall be
housed or in the locations they shall visit.

16.7 Under the terms and conditions of the above paragraph, the Supplier shall
ensure the Buyer's representative will have access to all locations related to
the production, use and testing, performance use and testing, and the
completion, verification and quality control of the SYSTEM. The Buyer shall
notify the Supplier fourteen (14) days in advance, regarding the visits of the
Buyer's representatives and shall inform the Supplier of the number and
identities of the representatives, the purpose of the visit. The visit shall
take place during business hours or otherwise agreed by the Parties in emergency
or special situation. The Buyer's representatives shall avoid all acts which may
hinder the smooth operation of the facilities.

ARTICLE 17 WAIVER OF RIGHTS

17.1. The waiver or the non exercise of any term of this Agreement by either of
the Parties shall not constitute a waiver of any of the rights of the said
Party. Such resignation shall be valid only

                                       17

if it is agreed upon in writing between both Parties, in accordance with ARTICLE
40 "AMENDMENT OF THE AGREEMENT".

17.2. Failure or omission of either of the two Parties to impose upon the other
Party, at any time, the application of the provisions of this Agreement or to
exercise any right provided by this Agreement shall not be interpreted as being
a present or future resignation from these provisions or rights and shall not
affect the existence /validity, enforcement of the Agreement.

17.3. The explicit resignation of any of the Parties from any of the rights
resulting from any ARTICLE or any provision contained in this document, does not
constitute a waiver/ resignation from any future right or obligation in
accordance with this ARTICLE or provision, or waiver/ resignation from any other
right which derives from any term of this Agreement, unless it has been agreed
to otherwise between both Parties.

17.4. Any omission by the either Party to immediately claim any indemnification
from the other Party for any damage, costs or other expenses that will be paid
by it for the other Party's account, shall not constitute resignation of the
Party from its right to claim indemnification for the damages, costs or other
expenses and the Party has the right to claim the aforementioned indemnification
at any time, in accordance with this Agreement.

ARTICLE 18 LICENSES, PERMITS AND APPROVALS

18.1 The Buyer will be responsible to provide any Local Licenses and permits
necessary to establish and operate the System in the Region and in order for the
Supplier to have access to the sites provided to in this Agreement in order for
the latter to fulfill its contractual obligations in accordance with this
Agreement. The Buyer shall be responsible to obtain any other licenses, permits
and approvals necessary for the Supplier to perform its contractual obligations,
including any and all permits and approvals related to the Supplier's and its
subcontractors' personnel, such as security provision requirements, visas, work
and residence permits if required, etc. Without derogating from the above, the
Buyer shall assist and support the Supplier and shall use its best efforts to
arrange for the residence permits as well as for the necessary work permits for
the Supplier's personnel.

18.2 According to the requirements of the Chinese government, Supplier shall be
responsible for applying for the Telecommunication Equipment Network Access Type
Approval to the relevant Chinese government departments; Buyer shall co-operate
diligently with Supplier for the application.

18.2.1 To perform the foregoing tasks, the Supplier and its parent company
Ituran Location and Control Ltd. will authorize Buyer as their representative
office in the Region within thirty (30) calendar days from the Effective Date of
this Agreement. The term of this authorization shall be no shorter than five (5)
years. The representative office will represent the Supplier to apply for the
Telecommunication Equipment Network Access and Type Approval to the relevant
Chinese authorities.

18.2.2 Supplier and its parent company Ituran Location and Control Ltd. shall
provide all the documents required for setting up the representative office in
China.

                                       18

18.2.3 Buyer will play its role, at its own expenses, as the representative
office of Supplier and its parent company Ituran Location and Control Ltd. in
the Region. The fees charged by the relevant Chinese authorities during the
application for setting up the representative office in China shall be borne by
Supplier and its parent company Ituran Location and Control Ltd.

18.2.4 The costs of applying for the Telecommunication Equipment Network Access
and Type Approval to the relevant authorities of China shall be borne by
Supplier and its parent company Ituran Location and Control Ltd.

18.2.5 Any delays caused during the process of the fulfillment of forgoing tasks
not caused due to the faulty behavior of the Supplier, and causing the
corresponding delay in the project schedule, will be considered "excusable
delays" and defined in article 21.3

ARTICLE 19  COMPLIANCE WITH LAWS

19.1 The Parties specifically acknowledges that themselves and their supplier's
employees, agents, subcontractors, and consultants shall conduct business within
the letter and spirit of all applicable laws and regulations.

19.2 The Buyer must receive all necessary approvals, including import licenses
from the competent local government agencies.

19.3 Should the Buyer be found to be non-compliant with any of the provisions of
the aforementioned laws; as well as of article 18, the Buyer shall indemnify the
Supplier for any penalty, loss or expenses incurred by Supplier as a result of
Buyer's breach of any of its obligations under this Article.

19.4 Each Party is responsible for the supervision and safety of its personnel
and the personnel of its subcontractors/suppliers. All delivered products, work
or services provided or performed under this Agreement by each Party shall be
safe for all uses contemplated by the present Agreement. The Buyer is
responsible for the supervision and safety of its personnel and the personnel of
its subcontractors/suppliers.

ARTICLE 20  GOVERNING LAW/ARBITRATION

20.1 This Agreement shall be governed by and construed in accordance with the
laws of United Kingdom (LAW) without regard to its conflict or choice of law
provisions. This Agreement and all related correspondence shall be written in
the English language, which shall take precedence over any translation.

20.2 Any dispute arising out of or in connection with this Agreement, including
its existence, validity or termination, shall be handled in accordance with the
following process:

20.3 The Buyer and Supplier's in-country program managers shall agree to enter
into negotiations to resolve such dispute. Both parties agree to negotiate in
good faith to reach a mutually agreeable settlement within a reasonable amount
of time. If after a period of twenty (20) calendar days the dispute remains
unresolved, it shall then be solely and finally settled by binding arbitration
under the Rules of Conciliation and Arbitration of the International Chamber

                                       19

of Commerce (ICC), which rules are deemed to be incorporated by reference into
this article. The tribunal shall consist of three (3) arbitrators appointed
pursuant to the rules of the ICC and as follows: one arbitrator shall be
appointed by the Buyer, one by the Supplier. The third arbitrator shall be
appointed by the other two arbitrators and shall be the president of the
tribunal. The place of the arbitration shall be Vancouver, Canada. The English
language shall be used throughout the arbitral proceedings. The judgment
rendered by the arbitrators upon the award shall be final and binding upon the
Parties and may be submitted in any court having jurisdiction for the purposes
of obtaining an order of enforcement or judicial acceptance of the award, as the
case may be.

20.4 The Parties shall not be entitled for any reason whatsoever, to stop the
implementation of this Agreement or/ and any of the obligations hereto. As an
exception to the aforementioned, in the event that the Buyer delays the payment
to the Supplier of any overdue amount of the Price, for a period which is longer
than fourteen (14) days from the date that this amount became due and payable in
accordance with the terms and conditions of this Agreement, then the Supplier
shall have the right to stop the implementation of its obligations until the
date that the Buyer will fulfill its respective obligation for payment.

ARTICLE 21  LIMITATION OF LIABILITY

21.1 AGGREGATE LIABILITY. Irrespective of the number of claims and the basis of
such claims, the maximum aggregate liability of either party in connection with
this agreement for any direct damages or losses, whether such claim arises in
contract, tort or otherwise, shall not exceed a sum equal to the amounts
actually paid by Buyer to Supplier in terms of this Agreement, in addition to a
Performance Bond equal to the 10% of the amounts paid by the Buyer to the
Supplier.

21.2 SOLE LIABILITY. Either Party (and its suppliers) obligations and liability
under this Article and this Agreement shall be Either Party's sole obligations
and liability to the other Party and any third party and the Party's exclusive
remedy and the other Party shall have no other liability whatsoever.

21.3 EXCUSABLE DELAY. The liability do not apply when the Supplier is unable to
complete or is late in fulfilling its contractual obligations towards the Buyer
exclusively and solely as a result of the culpable ("ipetia siberifora")
behavior of the Buyer or of any of Buyer's subcontractors and/or the culpable
failure of fulfillment of Buyer's responsibilities in accordance with this
Agreement, or due to reasons of force majeure in accordance with article 23
hereto ("EXCUSABLE DELAY"), nevertheless the Parties will make their best
efforts to retain the time schedule and meet the program milestones. In cases of
excusable delays, the Buyer will hold the Supplier harmless from damages and
shall not impose penalties to the Supplier.

ARTICLE 22  ASSIGNMENT OF RIGHTS AND OBLIGATIONS

Neither party shall be entitled to assign its rights or obligations hereunder
without the prior consent of the other party except for assignments to parent
companies or related companies that have major participation from each party.

                                       20

ARTICLE 23  FORCE MAJEURE

23.1 If either Party, due to reasons of force majeure, is not able to fulfill
its contractual obligations, and particularly to deliver the CONTRACTUAL ITEMS
within the time limits specified in ARTICLE 8 - "DELIVERY - ACCEPTANCE --
TRANSFER OF OWNERSHIP -- RISK OF LOSS OR DAMAGE" then the time limits for the
fulfillment of its obligations and for the delivery of the CONTRACTUAL ITEMS
shall be extended for a time period equal to the duration of the event which
constitutes Force Majeure and of its results, without imposing any applicable
sanctions, under the condition that the Party suffering the Force Majeure Events
shall act as specified in the following paragraphs of this ARTICLE.

23.2 The proof of the event which constitutes, Force Majeure and the duration of
its results, as well as the size of the negative implications of the occurring
of such an event to the smooth implementation of this Agreement, shall be the
responsibility of the Party suffering the Force Majeure Events, who shall be
obliged to submit to the other Party a notification together with the proper
documents issued by the competent authorities, as the case may be, within, at
the latest, thirty (30) days from the time the Force Majeure event occurred,
while, in the event that they are continuous, the Party suffering the Force
Majeure Events shall within the same time period, specify their estimated end if
possible.

23.3. Taking into consideration the special conditions of the implementation of
this Agreement and the importance of its timely implementation in accordance
with ARTICLE 2.6 above, as Force Majeure Events shall be deemed only those
which: a) are beyond the control of the Party suffering the events, b) they take
place without being caused by such Party's culpability, c) hinder this Party
from fulfilling its obligations despite the reasonable attempts to implement
alternative means and ways for this fulfillment. The following events shall be
considered to constitute Force Majeure, under the aforementioned conditions:

23.3.1  Destructive fires, floods, earthquakes or other natural disasters.

23.3.2 Generalized war that hinders specifically the implementation of the
Agreement.

23.3.3 Embargo or accidents that influence the transportation and delivery of
the CONTRACTUAL ITEMS.

23.3.4  Political upheaval, terrorist acts,

23.3.5. Interruption of power supply and other utilities or verified machinery
damage.

23.3.6 General or partial strike, declared by the legally recognized unions, at
the Supplier's facilities.

23.3.7 The announcement by the foreign affairs ministry, which forever reason
warn, or limits or forbids one side to travel to the other Party state.

23.4 If the Parties do not agree as to the characterization of events, other
than those described in Paragraph 23.3 above, as constituting force majeure
and/or as to their consequences to the inability of the Party who pleads them
for the non fulfillment of its contractual obligations, the

                                       21

provisions of ARTICLE 20 - "APPLICABLE LAW - ARBITRATION" shall apply. No Party
shall unjustifiably refuse the acceptance of a proven event of Force Majeure.
The Party that will have been notified regarding the occurring of an event
constituting Force Majeure, is obliged, within eight (8) calendar days after
receiving the information documenting the event which constitutes Force Majeure,
to notify the other Party in writing of its acceptance or refusal to accept that
the event constitutes force majeure; otherwise, the event and its consequences
shall be considered accepted.

23.6 The Party appealing a force majeure event, shall continue to perform the
part of its contractual obligations which is not affected by the force majeure
event and shall make all reasonable efforts in order to minimize the negative
impact of this event in the fulfillment of its obligations. After the occurring
of the force majeure event, the implementation of this Agreement shall continue
in the most beneficial manner for both parties. In case that modifications are
required in the delivery timetable, the payment timetable, etc. these shall be
defined and shall be mutually agreed to within eight (8) calendar days in
accordance with ARTICLE 40 "AMENDMENTS OF THE AGREEMENT", from the time that the
affected Party provided written notification that the force majeure event is
terminated.

ARTICLE 24 LOCAL MANUFACTURING, RESEARCH AND, DEVELOPMENT

24.1 The parties acknowledge the importance of production of end-user equipment
in THE REGION. The Supplier will choose the adequate Chinese manufacturer for
the end-user equipment approved by Buyer. The Buyer has the exclusive right to
finally confirm a manufacturer. This Chinese manufacturer will produce the end
user equipment as Supplier's subcontractor. Ways of manufacturing and settlement
shall be stipulated in separate agreement negotiated by the Parties. The
manufacturing of end user equipment by the Chinese Manufacturer chosen by the
Parties will commence after the production and supplying of specified quantities
of the equipment by Supplier's current manufacturers as will be agreed between
the Parties.

24.2 The parties agree to produce BASE STATIONS in the China Mainland. The
production may start from simply assembly of Base Station equipment, then
gradually transits to extensive manufacture. All details (time, terms etc.) of
the production of Base Stations will be negotiated in the future. The
manufacturing of BASE STATIONS by the Chinese Manufacturer chosen by the Parties
will commence after the production and supplying of specified quantities of the
BASE STATIONS by Supplier's current manufacturers as will be agreed between the
Parties. This Chinese manufacturer will produce Base Station equipment as
Supplier's subcontractor. Ways of manufacturing and settlement shall be
stipulated in separate agreement negotiated by the Parties.

24.3 Setting Up Research and Development Center (R&D, Center). The Parties
herein acknowledge the great potential of Chinese market and the importance of
this market to the future development of the Supplier. After the deployment of
the First Phase System, the Parties shall discuss the details of setting up R&D
Centers of Ituran system in China. The Supplier may take multiple ways to set up
the R&D Center in cooperation with the Buyer; the Buyer will have a sole right
to designate the Chinese companies for this task. The aforesaid designated
companies shall be approved by the Supplier.

                                       22

ARTICLE 25  SUCCESSORS

This Agreement shall inure to the benefit of, and shall be binding upon the
Parties hereto and their successors, and legal representatives.

ARTICLE 26 TECHNICAL AND CONTRACTUAL REPRESENTATIVES

26.1 The Parties shall designate and notify in writing to the other Party their
technical and contractual authorized representatives.

26.2 All communications shall be in English. Communications that could affect
the Agreement's Price, schedules, statement of work, or these terms and
conditions shall be made only with the authorized contractual representatives
noted above. No changes to this Agreement shall be binding upon either party
unless incorporated in a written modification to the Agreement and signed by the
contractual representatives of both Parties.

ARTICLE 27  COOPERATION

Each Party and their respective employees, agents, subcontractors, vendors and
consultants shall fully cooperate and not interfere with the performance of
employees, agents, other subcontractors, vendors or consultants of other persons
or entities working for the implementation of the SYSTEM. Each Party shall be
obliged to coordinate the activities of its subcontractors so as to ensure that
the other Party and its subcontractors are able to proceed without any delay
with the execution of the tasks to be performed.

ARTICLE 28  RELATIONSHIP OF PARTIES

The parties and their respective subcontractors are independent contractors and
nothing contained in this Agreement shall be deemed or construed to create a
partnership, joint venture, or other relationship other than that of Supplier
and Buyer or those mentioned in any other agreement between the Parties. Every
Party will be solely responsible for payment of all compensation owed to its
employees, its subcontractors as well as employment related taxes.

ARTICLE 29  ITURAN RADIO LOCATION SYSTEM LICENSE

29.1 The Supplier on its own behalf and on behalf of other companies that
license Technologies incorporated in the System grants the Buyer a sole and
exclusive license to use Ituran Technologies in the Territory, including without
limitation the System, and certain solutions and all software of the Supplier,
as long as they are incorporated in the System, for the purpose of operating,
maintaining and promoting the terrestrial location-based services to the
potential customers and end-users including but not limited to, the general
public, military, marine, police, and security forces, within the Territory
pursuant to the terms of this Agreement.

29.2 The Ituran Radio Location System License by the Supplier is comprised of
the license for the total system and the license for NCC (Network Control
Center) software per regional NCC. Any monthly service feel or royalty fee per
customer or transponder shall not be charged by the Supplier to customer in any
case.

                                       23

29.3. The Supplier shall not directly, or shall not grant any license,
concerning Ituran Technologies, to any company that intends to, provide any
license for the Ituran Radio Location System in the Region or sublicense the
Ituran Technologies to any other company which may engage in such services in
the Region. The Supplier hereby declares that it possesses all necessary
licenses from other Parties to fulfill its obligations under this Agreement.

29.4 Without the prior approval of the Supplier, the Buyer or its related
companies shall not engage with other companies that provide location technology
competitive with Ituran Technologies.

ARTICLE 30  CONFIDENTIALITY

30.1 All information obtained by the Buyer and the Supplier relative to the
Supplier or the Buyer, for or in connection with this Agreement, including but
not limited to information obtained during proposal and pre-proposal efforts,
PROJECT INITIATION AGREEMENT and Agreement negotiations, site visits and
meetings shall be considered confidential. Accordingly, each Party agrees that
it will not disclose to any person such confidential information unless that
person has a need to know for the implementation of this Agreement, and is bound
by confidentiality obligations consistent with those in this Article. Further,
each party shall use confidential information solely for the performance of this
Agreement and for no other purpose. Confidential information shall include, but
not be limited to, the features of any equipment, tools, gauges, patterns,
designs, drawings, specifications, engineering data or other technical,
financial, business, pricing, or proprietary information furnished by or
relating to the Supplier or the Buyer. Each Party also agrees to abide by any
restrictive legends placed on such information. Upon completion or termination
of this Agreement, each Party shall return all such information to its owner or
make such other disposition thereof as may be directed or approved by such
party.

30.2 The Parties may be required to disclose certain information in order to
acquire certain approvals required by each Party's Government or under any law.
Such information may include specifications, technical and financial
information, plans, technical reports and other similar information required for
export/import license acquisition. Each Party shall inform the other before
making such disclosures. Prior to disclosing such information, the disclosing
Party shall notify the receiving party in writing, or by appropriate markings on
the documents, that the information is confidential, proprietary, or for "strict
official use", as applicable.

30.3. Any Party may disclose any information required by any law.

30.4 Similarly, it may be necessary to disclose certain information to the
subcontractors and suppliers of each Party for the performance of the Agreement.
In that case also, each Party shall observe the same restrictions as described
above. In addition, each party shall execute with such subcontractors and
suppliers a non-disclosure agreement with terms consistent with this article.

ARTICLE 31  INTELLECTUAL PROPERTY RIGHTS, OWNERSHIP, PATENTS AND ROYALTIES

31.1 The Supplier represents, undertakes and warrants that it owns the
intellectual property rights or know-how relating to the special equipment of
the System, and possesses licenses for other components of the System.

                                       24

31.2 The Supplier agrees to pay all royalties and license fees owed by the
Supplier to any third party by reason of performance of the Supplier on this
Agreement. The Buyer agrees to pay all royalties and license fees owed by the
Buyer to any third party by reason of performance of the Buyer on this
Agreement.

31.3 The Supplier and the Buyer shall each retain ownership of, and all right,
title and interest in and to, their respective, pre-existing technology. For
matter of clarity, all trademarks, trade names, copyrights, patents and other
intellectual property rights used or embodied in or in connection with the
CONTRACTUAL ITEMS developed by the Supplier, and all documentation and manuals
relating thereto shall be and remain the sole property of Supplier, and Buyer
shall not during or at any time after the expiry or termination of this
Agreement in any way question or dispute the ownership by Supplier of any such
rights.

31.4  Licenses and Technical Documentation.

(a) Supplier grants the licenses to the Buyer for the technology as set forth in
the Article 29, and in accordance with article 8.3. Such licenses shall be non
transferable. The intellectual property rights associated with such licenses
shall be owned by the Supplier or the Supplier's subcontractors and suppliers.
The licenses are granted in this Agreement for use by the Buyer or any permitted
assignee. The licenses shall not grant the right to reverse engineering, copy,
manufacture or reproduce any of the CONTRACTUAL ITEMS delivered hereunder by the
Supplier.

(b) All of the documentation provided to the Buyer and in accordance with this
Agreement shall be complete and shall correspond to the most current version of
the accompanying products as they have been delivered to the Buyer.

ARTICLE 32  TRANSFER OF INTELLECTUAL PROPERTY RIGHTS

The PARTIES agree as follows regarding the transfer of the intellectual property
rights hereunder. The Supplier agrees to transfer exclusively for the use within
the Region the title, ownership to the intellectual property rights, including
Know-how, patents and the source codes of all the application software of the
SYSTEM, which he owns, to the Buyer once the following conditions are fulfilled.
The intellectual property rights, including Know-how, patents and the source
codes of all the application software of the SYSTEM which Supplier owns then
transferred from the Supplier to the Buyer shall be up-to-date and being used in
the SYSTEM:

32.1 The Buyer has paid the Supplier an aggregated sum of US$150 million (one
hundred and fifty million) (including payments that have been made for the
special equipment of Ituran system, System licensing fee, software licensing
fee, etc.)

32.2 Upon the completion of the transfer, the BUYER will own the title,
ownership to the intellectual property rights, including Know-how, patents and
the source codes as mentioned above. The transferred intellectual property
rights shall only be used in the Region, and shall not be used for any
commercial purpose or any other purpose, outside the Region. The supplier shall
retain full title and ownership to the intellectual property rights outside the
Region.

                                       25

ARTICLE 33  PUBLICITY AND DISCLOSURE

Neither Party shall use the name or logo of the other Party in any news release,
public announcement, advertisement or other form of publicity, or disclose any
of the terms or subject matter of this Agreement to any third party except as
may be required by the law and for the performance of this Agreement, without
securing the prior written consent of the other Party's Contractual
Representative.

ARTICLE 34 NOTICE

Any notice to be given hereunder by either Party to the other shall be in
writing and signed by an authorized representative in the English Language and
shall be deemed received when delivered by confirmed facsimile or recognized
courier. The Parties agree that notices delivered orally, or by electronic mail
on the Internet or by intranet, do not constitute official, enforceable notices
under this Article.

Notices to Buyer shall be addressed to:

Golden Net Communication Technology Ltd.
C-209, 25 Fuxing Road
Zhongguancun Science Park
Beijing, 100036, P.R.  China
Tel:  +86-10-68181557
Fax:  +86-10-68185315
Attn:  Mr Guangyi Cao

Notices to Agent shall be addressed to:

Digitrack (China) Group Co. Ltd
Shop 55 2/F Lever Building 33, Larch Street
Tai Kok Tsvi Kowloon
Tel:  + (852)31881257
Fax:  + (852)34285609
Attn:  Mr Hongming Xu

Notices to Supplier shall be addressed to:

Telematics Wireless Ltd.
26 Hamelacha st.,
Holon, Israel
Tel:  +972-3-5575757
Fax:  +972-3-5575703
Attn:  Mr Kafri Eddy,
Mr Sternberg Roman

If either Party changes its address or facsimile number (or any part thereof)
during the Term, it shall so advise the other Party in writing. Any notice
thereafter required to be given shall be sent by a recognized courier or fax to
such new address or to the new or revised facsimile number.

                                       26

ARTICLE 35  LIABILITY

UNLESS OTHERWISE STIPULATED IN THIS AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE
LIABLE TO THE OTHER FOR ANY DAMAGES OR FOR ANY LOST REVENUES, LOST PROFITS, OR
OTHER INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES CAUSED,
IN WHOLE OR IN PART, BY THE LICENSING, USE OR SALE OF THE SYSTEM OR ANY PART
THEREOF, INCLUDING, BUT NOT LIMITED TO, ANY LICENSE, OR OTHERWISE ARISING OUT OF
OR RELATING TO THIS AGREEMENT. NOTHING IN THIS SECTION SHALL RELIEVE BUYER OF
ANY OBLIGATION TO PAY TO SUPPLIER AMOUNTS DUE AND OWING UNDER THIS AGREEMENT AND
DEVELOPMENT, TRAINING AND SUPPORT CHARGES UNDER THIS AGREEMENT.

ARTICLE 36  TERMINATION

36.1 Buyer may, by written notice of default of Supplier, terminate the whole or
any part of this Agreement, in any one of the following circumstances:

(i) Supplier fails for reasons due to his liable behavior to make delivery of
the CONTRACTUAL ITEMS within one hundred and twenty (120) days after the dates,
set forth in ANNEX I or any extension thereof due to Force Majeure reasons or
any extension due to excusable delay, as defined in Article 21.3 of the present
Agreement; or

(ii) Supplier fails for reasons due to his liable behavior to perform any of its
contractual obligations, all being defined hereto as "major contractual
obligations" as the term "major contractual responsibilities" is specified
according to the principles of good faith, despite the fact that it has been
notified by the Buyer in accordance with paragraph 36.2; or

(iii) Supplier becomes insolvent or the subject of proceedings under any law
relating to the relief of debtors or admits in writing its inability to pay its
debts as they become due.

36.1 Buyer may, by written notice of default to Supplier, terminate the whole or
any part of this Agreement, in any one of the following circumstances:

36.2  Procedure for Termination

If one or more reasons stated in paragraph 36.1 hereinabove occurs, the
following procedure shall apply:

Termination by the Buyer

(a) The Buyer shall send written notification to the Supplier regarding the
Buyer's intent to declare this Agreement terminated, indicating the specific
breach of the Supplier's contractual obligation and requesting the Supplier to
take any action or actions necessary to remedy the situation.

(b) The Supplier shall have the obligation to remedy the breach within one
hundred and twenty (120) calendar days from the date the written notification
was received, or, if the breach for

                                       27

which the Supplier is responsible cannot be remedied within one hundred and
twenty (120) calendar days, the Supplier shall have the obligation to propose a
remedy and timetable for fulfilling the proposed remedy.

(c) If the Supplier fails to remedy the violation for which the Supplier is
responsible within one hundred and twenty (120) calendar days from the time the
written notice is received, or the Supplier fails to propose a remedy and a
timetable of implementation of the proposed remedy within one hundred and twenty
(120) calendar days, the Buyer shall have the right to terminate the Agreement,
in whole or in part, by sending written notification to the Supplier specifying
further the reasons for calling the Agreement terminated and the effective date
of the termination.

36.3 If this Agreement is so terminated, Buyer may procure or otherwise obtain,
upon such terms and in such manner as Buyer may reasonably deem appropriate,
remedy solely as stated in this Agreement.

36.4 Supplier shall transfer title and deliver to Buyer, to the extent requested
in writing, such complete or partially completed articles, property, materials,
parts, tools, fixtures, plans, drawings, information, which shall be defined as
termination inventory upon payment by Buyer the respective Agreement price.

36.5 The Supplier shall continue performance of this Agreement to the extent not
terminated and so requested by the Buyer.

36.6 In the event that Buyer terminates the Agreement for Force Majeure or for
any reason whatsoever as stated above, this Agreement shall be terminated
without liability or claims by either party as a result thereof. In such event
the Buyer shall pay the Supplier for all the CONTRACTUAL ITEMS delivered by the
Supplier up to the effective date of the said termination. The parties shall
settle all open accounts, and Supplier shall not be entitled for any reason
whatsoever, to claim lost profits or consequential damages or costs resulting
from such termination.

36.7  Termination by the Supplier

The Supplier shall be entitled to terminate this Agreement as stated in Articles
36.1 - 36.6 above, MOTATIS MOTANDIS.

36.8  Time Schedules

In a case either Party is in a breach of an obligation, all time schedules shall
be postponed respectively, for the period of the breach.

36.9 If the Buyer has exercised his option of receiving the delay penalties from
the Supplier as specified in Articles 6.3 and 8.1.2 and then exercised the
option of Termination of this Agreement, the delay penalties paid by the
Supplieer will be deducted from the Performance Bond sum to be paid to the
Buyer.

                                       28

ARTICLE 37  TECHNICAL DOCUMENTATION (BIBLIOGRAPHY)

37.1 The Supplier shall provide at no separate cost to the Buyer, technical
bibliography and - maintenance - training bibliography in writing and electronic
form. The manuals shall accompany all technical equipment provided, including
the manuals of use as well as those of the management of maintenance of the
SYSTEMS. The documentation shall include:

o Base Station Specifications
o Vehicle Location Unit Specifications
o Personal Location Unit Specifications
o Control Center Diagrams
o Control Center Infrastructure requirements Specifications
o Base Station Infrastructure requirements specifications
o Control Center operating Procedures
o Fleet Management Post Operating Manual
o VLU and PAL Registration and Activation Procedure
o System Acceptance Test Procedures
o Vehicle Location Unit general Installation instructions
o Monthly progress reports
o Design Reviews documentation

37.2 All the manuals of operation and other documentation shall be provided in
English language.

37.3 The manuals for standard commercial type (COTS) shall be delivered in the
same form they were created by the manufacturer in English, provided however
this equipment is supplied by Supplier.

37.4  The exact quantities of the bibliography shall be defined in PDR.

37.5 The TECHNICAL DOCUMENTATION to be delivered to the end users shall cover
the operation and the maintenance of the first stage (first line maintenance) of
the SYSTEMS to the extent that is provided in this Agreement.

37.6 The Supplier guaranties the completeness and correctness of the TECHNICAL
DOCUMENTATION to be provided to the Buyer.

ARTICLE 38  CONFLICT OF INTEREST/SEVERABILITY.

38.1 Supplier shall exercise reasonable care and diligence to prevent any
actions or conditions which could result in a conflict with the Buyer's best
interests in connection with this Agreement. This obligation shall apply to the
activities of the Supplier's employees and agents in their relations with the
Buyer's employees, their families, vendors and third parties arising from this
Agreement and accomplishing work hereunder.

38.2. Buyer shall exercise reasonable care and diligence to prevent any actions
or conditions which could result in a conflict with the Supplier's best
interests in connection with this Agreement. This obligation shall apply to the
activities of the Buyer's employees and agents in

                                       29

their relations with the Supplier's employees, their families, vendors and third
parties arising from this Agreement and accomplishing work hereunder.

38.3 If any term of this Agreement is held or finally determined to be invalid,
illegal or unenforceable in any respect, in whole or in part, such term shall be
severed from this Agreement, and the Parties shall exercise their best efforts
in order that the remaining terms contained herein shall continue in force and
effect.

ARTICLE 39  INTERPRETATION

The captions and headings used in this Agreement are solely for the convenience
of the parties, and shall not be used in the interpretation of the text of this
Agreement. Each party has read and agreed to the specific language of this
Agreement; therefore no conflict, ambiguity or doubtful interpretation shall be
construed against the drafter.

ARTICLE 40  AMENDMENTS OF THE AGREEMENT

This Agreement may not be modified unless in writing duly executed by the
authorized representatives of the Parties and with specific reference to this
Agreement.

ARTICLE 41  GENERAL TERMS

41.1 The Parties under the Agreements agree that Supplier and its affiliated
companies shall not engage in any business connections in the Region regarding
the System except through Buyer or related companies that have major
participation from Buyer.

41.2 Any future business changes of Supplier, such as changes in share holders,
and change of names, etc, shall, not affect the full rights enjoyed by Buyer
under the Agreements and accordingly any future business changes of Buyer, such
as changes in share holders, and change of names, etc, shall not affect the full
rights enjoyed by Supplier under the Agreements.

41.3 In the event that SPARE PARTS are ordered by the Buyer, their prices shall
be as described in ANNEX I. The specification provided for the PRODUCTS apply
also to SPARE PARTS.

ARTICLE 42  BUYER FURNISHED EQUIPMENT- INSTALLATIONS - INFORMATION - SERVICES

42.1 The Supplier shall notify the Buyer of the details of the Buyer Furnished
Equipment within twenty (20) working days from the effective date of this
Agreement. The Buyer shall furnish to the Supplier all of the BUYER FURNISHED
EQUIPMENT (FE), BUYER FURNISHED INSTALLATIONS (FF), BUYER FURNISHED INFORMATION
(Fl) and BUYER FURNISHED SERVICES (FS) free of charge, in a timely manner, in
accordance with the provisions set forth in ANNEX I and in general, in such a
manner so as not to delay the time schedule. In the event of any delay, and/or
if the FE, the FF, the FI and the FS prove not to be in compliance with the
requirements of ANNEX I or it is proven that they are defective or incorrect,
the provisions of article 21.3 will apply.

                                       30

42.2 The Supplier shall be responsible for the BUYER FURNISHED EQUIPMENT (FE),
BUYER FURNISHED INSTALLATIONS (FF), BUYER FURNISHED INFORMATION (FI) and BUYER
FURNISHED SERVICES (FS), for the time that they shall be in its possession. In
the event of expiration or termination of this Agreement, the Supplier shall be
obliged to return them to the Buyer, forthwith, in the good condition that they
were provided to it, subject to normal tear and wear.

ARTICLE 43  ORDER OF PRECEDENCE

This Agreement and all of the ANNEXES attached hereto are intended to be read
and construed in harmony with each other, but in the event of an inconsistency
or conflict between provisions of this Agreement, the inconsistency or conflict
shall be resolved by giving precedence in the following order:

i. In case of inconsistencies between the ARTICLES and the ANNEXES, the ARTICLES
will prevail.

ii. The provisions of ANNEX I shall prevail to the provisions of the remaining
ANNEXES.

ARTICLE 44  ENTIRE AGREEMENT

This Agreement, including all documents enclosed and signed, shall constitute
the entire agreement and understanding between the parties hereto and shall
supersede and replace any and all prior or contemporaneous representations,
agreements or understandings of any kind, whether written or oral, relating to
the subject matter hereof with exception of the latest versions of Cooperation
Agreement between Agent and Supplier from January 16, 2003 and Cooperation
Agreement between Buyer, Agent and Supplier from January 16, 2003.

ARTICLE 45  LIST OF ANNEXES

THE FOLLOWING IS THE LIST OF ANNEXES CONTAINED IN THIS AGREEMENT

ANNEX I - Statement of Work, Price and Terms of Payment (incl. its appendixes)

ANNEX II - Acceptance Plan Principles

ANNEX III - Specific Spectrum Characteristics of the System

ANNEX IV - Ituran System Technical Description

ANNEX V - Tasks of Ituran and Telematics Team in the Turn-Key Project

ANNEX VI- Maintenance and Support Agreement Principles

                                     * * * *

                                       31

In consideration of the mutual obligations assumed under this Agreement, Buyer,
Agent and Supplier agree to this Agreement, which is executed by duly authorized
representatives as of the dates below.

AGREED BY:

TELEMATICS WIRELESS LTD.

By:  /s/ Avry Franco                       /s/ Roman Sternberg
     ----------------------------          ------------------------------------
By:  Avry Franco                           By: Roman Sternberg

Title:  V.P. & C.F.O.                      VP Marketing

Date:  29.08.04                            29.8.04

GOLDEN NET COMMUNICATION TECHNOLOGY LTD.

By:  /s/ [in Chinese characters]

Title: [in Chinese characters]

Date: [in Chinese characters]

DIGITRACK (CHINA) GROUP CO.  LTD.

For and on behalf of

DIGITRACK (CHINA) GROUP CO. LIMITED

Authorised Signature(s)

By:    /s/ [in Chinese characters]

Title: [in Chinese characters]

Date: [in Chinese characters]

                                       32

                               ANNEX I-1-SHANGHAI

                      ITURAN SYSTEM DEPLOYMENT IN SHANGHAI

                 STATEMENT OF WORK, PRICES AND TERMS OF PAYMENT

1.  GENERAL

This document provides a description of the activities to be carried out by
Supplier, its parent company Ituran Location and Control Ltd. (hereinafter
referred to as "Ituran") and local teams of the Buyer as a part of deployment of
Ituran Location System in Shanghai, including the responsibilities of each
party.

To insure successful deployment and based on the experience of previous
deployments of this system in other countries, a "phased" approach is proposed.
It is based on the initial deployment of a First Phase system in chosen
location. This First Phase will serve as a basis for all future deployments,
will enable proper adaptation to specific local conditions, to train local
technical and operational personnel and to serve as a Demonstration System for
various marketing activities. After completion of First phase deployment, its
initial trial run and performing all necessary further modifications and
adaptations, further deployment can be commenced. The First Phase System will
also serve as a basis for the System Acceptance Testing, after successful
completion of which the System will be officially transferred to the
responsibility of the Operating Company in Shanghai.

2.  GENERAL DESCRIPTION OF THE SYSTEM

Ituran System for locating vehicles, cargo and people is composed of the three
following sub-systems:

o Control Center.

o Base Stations.

o PAL (Personal Alarm and Locator (also serves as the cargo location unit))/VLU
(Vehicle Location Unit) - transmitter/receiver installed in the vehicle, cargo
or carried by a person.

The CONTROL CENTER is usually installed in the same building with other offices
of the Operating Company. The Control Center is composed of a number of computer
systems with dedicated software, workstations for operators, and communication
systems that connect the Center with the Base Stations. The control center is
the heart of the system, and its availability is of the utmost importance. The
center's systems have a hot backup and all its infrastructures (electricity,
communication lines, air-conditioning, etc.) are also backed-up. A general
description of the Control Center is provided in Appendix G of this SOW.

The characters displayed on Operator Stations shall be the official language of
the People's Republic of China - Simplified Chinese Characters.

                                       1

The Back Office capabilities, including billing are not part of the proposed
system and should be chosen by the Buyer based on the local systems and
regulations from local vendors.

The BASE STATIONS are installed in the chosen locations scattered in required
coverage area and constitute receive-only or receive and transmit sites (The
average proportion between receive-only sites and receive and transmit sites is
3:1). The Base Stations include computer-controlled receivers that receive
signals from the VLU or PAL and transfer the information to the Control Center
via the communication lines (basic technical requirements of such lines are
specified in ANNEX IV of the Comprehensive Agreement) for further processing and
display.

Some of the Base Stations are equipped with standard Paging transmitters
controlled by special controllers. The transmitters receive the information from
the control center and transmit it to the VLU or PAL in a synchronized form.
These transmissions serve for synchronization of all active VLUs/PALs and
interrogation of the chosen unit. The transmitters are tuned by Atomic Clocks or
GPS receivers installed at the stations or by other means.

Some of the Base Stations contain special synchronization transmitters,
responsible for precise calibration of the stations.

All of the stations are equipped with appropriate antennas installed on masts,
lightning protection systems, air-conditioning and UPS systems.

3.  CONTENT OF THE WORK

3.1  GENERAL

Installation of the System in the defined area will include installation of 45
receiving Base Stations and associated equipment. The deployment of this system
will be divided into 3 consecutive phases -

First phase: *** Base Stations and CC
Second phase: expansion of the system to *** Base Stations
Third phase:  expansion of the system to *** Base Stations

The first phase in the framework of the project includes all the activities
required for the deployment and running operation of the control center and ***
Base Stations of the Ituran location system. The system deployed in a first
phase will serve as a basis for the system Acceptance Testing by The Buyer. Upon
completion and Acceptance Testing, the Pilot system will be expanded in two
phases to include *** Base Stations and finally *** Base Stations.

The stations to be installed are:

o  ***
o  ***
o  ***

                                       2

***   Confidential material redacted and filed separately with the Commission.

The control center shall be run by defined number of operators and will permit
communication to *** base stations and upgradeable for communications with about
*** Base Stations (Receive and Transmit) with additional hardware.

3.2  PLANNING

Appendix B of this SOW presents a schedule of the process of system deployment
in a Microsoft ProjectTM format. The plan relates to the starting point of
September 1, 2004, however, it should be referenced to the actual Effective Date
of the project as defined in the Agreement. A more detailed plan will be
prepared after project launch and following the preliminary phase of site/field
survey and presented at PDR.

As can be seen from the Plan, the completion of first *** Base Stations and its
integration in Israel will be completed in 6.5 months AED. Please note that the
equipment must be modified to operate on the allocated frequencies. Originally
planned shipment (by sea) and custom procedures in China were estimated to take
one month. This time can be shortened if other more expensive transportation
means are exercised (e.g. air), thus shortening the entire project schedule. Due
to the tight schedule for the Demonstration System deployment it is assumed that
all shipments will be by air. The additional cost of this shipment shall be born
by Buyer.

3.3. LOCAL ENGINEERING TEAM AND ITS TRAINING

Following is the list of customer's technical personnel recommended to
participate at all the stages of system deployment. This team will work in
parallel with Telematics Wireless/Ituran team and will be trained to perform
further deployment, technical operation and maintenance of the System.

1. Engineering Manger. This person will be the technical leader of the local
team and will have overall responsibility for all the technical aspects of
system's operation and support. This should be an Electrician Engineer,
preferably with wide experience in integration and technical support for large
scale infrastructure-based communications systems (e.g. cellular or paging) and
excellent management skills.

2. Senior System Engineer. This person will be the manager of the Control Center
Engineering team. He should be software engineer with experience in operating
systems (e.g. QNX/UNIX) and real time software.

3. Control Center Engineer. This should be software engineer working under the
supervision of Senior System Engineer.

4. Base Stations Engineer. This person will be responsible for the technical
operation and support of system's Base Stations. He and his team will actively
participate in all the aspects of the deployment and integration of Base
Stations. This should be an Electronics Engineer with experience in
installation, operation and maintenance of RF, communications equipment,
antennas, modems, interfacing with telecom lines and power supply
infrastructure. Preferably, this person should have an experience in integration
and maintenance of Cellular Base Stations sites or Paging Transmission sites.

                                       3

***   Confidential material redacted and filed separately with the Commission.

5. Base Station Technicians. Two or three technicians or junior engineers with
the experience in installation and maintenance of Cellular or Paging sites and
working under the supervision of Base Stations Engineer.

The above team will actively participate in all stages of the deployment process
under the supervision of Telematics personnel. They all (especially the
engineers) must have good knowledge of English language. They will receive an
initial training at Ituran and Telematics facilities in Israel for about two
weeks. Afterwards the team will work together with Telematics team in China,
continuing its training in OJT form. After the deployment, integration and
initial operation of the first *** Base Station, the local team will perform
further deployment of additional *** Base Stations (phase two) under the strict
supervision and "as needed" involvement of Telematics team. In parallel, the
local team will prepare the required Installation and Operating instructions in
Chinese, based on their training and experience gathered during the deployment
process and the documentation provided by Telematics Wireless. Final *** Base
Stations deployment (phase 3) will be performed by the local team under the
supervision of Telematics team, but with minimum level of their direct
involvement.

3.4  EQUIPMENT PURCHASE

The list of the main items required for the deployment of *** Base Stations and
Control Center is provided in the Appendix A of this SOW. This list is subject
to changes according to the specific local requirements. Some of the standard
items mentioned in the list may be obsolete and should be replaced by the
compatible items. The updated purchase list for standard equipment will be
prepared by Supplier within fifteen (15) calendar days from the Effective Date.
The list includes recommended quantities for purchase. Exact quantities for
maintenance purposes will be separately agreed upon between Supplier and Buyer.
Supplier shall notify the Buyer to prepare such equipment at least fifteen (15)
calendar days before it shall be used. Supplier has the responsibility for
special equipment supply. Buyer will be responsible for the standard equipment
supply and may propose alternative vendors for specific items, equal in
performance to the defined items. The standard equipment items purchased by the
Buyer must be approved by the Supplier in advance. Any changes in equipment must
be approved by the Supplier. The purchased equipment will be shipped to the
specific locations as directed by the Supplier for further integration and
installation. The equipment for the first Control Center and Base Stations will
be integrated and tested in Israel prior to the shipment to China. The Buyer
will be responsible for releasing the equipment from customs and transporting it
to the Control Center or other sites as required.

Equipment type approval for the special equipment will be performed in full
coordination between Supplier and Buyer. The application preparation and
submission will be fully supported by the Buyer.

The purchase of End User equipment will be done in accordance with End User
Equipment Purchase Agreement attached as Appendix J of this SOW.

                                       4

***   Confidential material redacted and filed separately with the Commission.

4.  SETTING UP THE CONTROL CENTER

4.1  INFRASTRUCTURE

Supplier will prepare the specifications for the setting up the Control Center.
The Buyer will choose local contractor that shall plan and set up infrastructure
in the Control Center building based on Supplier' specifications. The
infrastructure will permit the operation of the Control Center, including its
operation during power failures and partial malfunction of the air-conditioning.
The infrastructure set up will include the purchase and installation of a
generator, UPS, electricity boards and their integration in the building's
electricity system.

Based on Supplier' specifications, the local contractor will design and
construct the partitions required for the operation of the Control Center and
the communication room, taking into consideration all the needs of the Operating
Company to be established. A floating floor will be installed in the Control
Center and the communication room for the passage of cables. A platform for the
operators will be constructed in the Control Center, and contain furnishings for
several operating posts. The contractor will install electricity and
communication sockets underneath the floating floor and along the walls of the
Control Center, fluorescent lighting in the ceiling with anti-glare covers.
Electricity boards and carrying equipment of communication to the sites will be
installed in the communication room.

The contractor will design, purchase and install a backed-up air-conditioning
system for the control center and the communication room.

The contractor will present all plans to Supplier and, after their approval,
will continue with the implementation stage.

The Buyer will insure that the design and implementation is performed according
to all applicable regulations. The Local contractor's work will be considered
completed upon full acceptance by Supplier.

4.2  COMPUTERS AND COMMUNICATION

The Local contractor will install the Control Center and operators' posts
equipment in accordance with specifications and guidelines of Supplier.

Integration and testing of the Control Center's equipment will be performed by
Telematics Wireless team together with the Local Engineering team. Initial
integration of the equipment will be performed in Israel with participation of
the Local Engineering team.

Appendix G provides general description of the operational Control Center.
Digital Mapping Content will be supplied by the Buyer according to the
requirements presented in Appendix H. In addition, the Buyer will supply a DTM
file (in known format) that includes the altitude data for all the required
coverage in a definition of at least 1 minute.

                                       5

5.  SETTING UP BASE STATIONS

5.1  LOCATING AND PURCHASE OF SITES

Upon completion of the Field Review by Telematics team, The Buyer will be
responsible for the location of appropriate sites for Base Stations, on the
basis of a primary deployment map and a list of sites according to priorities,
that will be prepared and provided by Telematics. This list will be based on a
special analysis using DTM information ("altitude" maps). For each potential
site The Buyer will present more than one alternative, stating the technical and
economic advantages and disadvantages of each. Among other issues, The Buyer
will check the possibility of long-term rental, access to the site during all
hours, the existence of an appropriate electricity feeding line, place for a
mast (or existence of a usable mast) appropriate grounding, and the feasibility
of obtaining a data line. Telematics and Local engineering team will verify if
there is a risk of possible existence of electro-magnetic interference from
nearby radio equipment of third parties as well as general level of
electro-magnetic noise that may have influence on system sensitivity. After one
of the alternatives has been approved by Supplier. Buyer will handle the rental
contract and obtain from the municipal authorities all required permits for
setting up a base station.

5.2  COMMUNICATION LINES

The Buyer will order for each site allocated for the receiving station the
following communication infrastructures:

o PTP data line between the site and the control center at a rate of minimum 9.6
Kbps asynchronous.

o An ordinary telephone line.

The Buyer will order for each site intended for the receiving and transmission
station the following communication infrastructures:

o Two PTP data lines between the site and the control center at a rate of
minimum 9.6 Kbps asynchronous.

o Two ordinary telephone lines.

o The possibility of working with a line at a rate of 19.2 Kbps and a
multiplexer unit for two ports will be examined at these sites.

5.3  SITE INFRASTRUCTURE

Supplier will provide the specifications and requirements for the infrastructure
installations at Base Stations sites. The Buyer via local contractor will design
the infrastructure for each site intended for Base Station. The contractor will
plan the type and height of the mast (if necessary), the location for the
building/construction (if necessary), the routing of the RF, communication,
power and grounding cables, and submit the design to the Supplier for approval.
The mast will be equipped with a lightning arrester with grounding cable, mast
illumination (if

                                       6

necessary), a cable ladder, and arms appropriate for the system's antennas. The
contractor will submit to Supplier for approval the type of the construction,
the air conditioning system, the method of deployment of the communication
infrastructure. The construction will contain the antennas concentrator board
for the entry of RF cables, lighting, a smoke/fire sensor, a standard fire
extinguisher and a door-opening sensor.

After approval of the plans by Supplier, the local contractor will set up the
infrastructure at the site. This will include the mast and the construction,
installation of RF cables and antennas on the arms, connecting the construction
to the electricity source, the grounding, the communication lines, and the RF.
The contractor will purchase all the needed equipment for the above activities
except antennas.

If necessary, the contractor will design and erect a fence around the station,
and make arrangements with a security company to guard the site.

5.4  GEODESIC MEASUREMENTS

At each of the sites The Buyer via local contractor, specifically chosen for
this task, will perform geodesic measurements for the placement of the antennas.
The accepted measuring system is Differential GPS. The required precision is +/-
few centimeters.

5.5  INSTALLING A BASE STATION

Upon completion of the infrastructures deployment at the site, the local
contractor will transport the Base Stations racks to each site and will put it
at the construction location. The Telematics and Local engineering teams will
perform all connections between system's units and the various infrastructures.
The operation of the system at the site shall be performed in accordance with
the guidelines issued by Supplier.

5.6  INTEGRATION WITH THE CONTROL CENTER

Integration of Base Stations with the Control Center will be performed by
Telematics team together with the local engineering team. Each Base Station data
will be defined in the CC, including measured location, name, technical profile,
communication lines definitions etc. After verification of proper functioning of
communication lines using test equipment, each Base Station will be connected to
the CC over the designated line.

Location System will provide real time information regarding the communication
performance and data validity received from the site.

5.7  GENERAL REQUIREMENTS

In all installation works the local contractor will mark all cables with
markings to be agreed upon with Supplier. The cables will be marked at 3 m
intervals and adjacent to end connectors. Routing of cables serving different
purposes (communication, electricity, grounding, etc.) shall be separated.

                                       7

The local contractor will meet the accepted standards for civil construction,
mechanical work, cabling work, and electrical safety. The Buyer will insure that
the design and implementation is performed according to all applicable
regulations.

6.  MAINTENANCE

During the establishment and trial run stages of the system, the local
contractor will provide maintenance to the general infrastructure of the Control
Center and the Base Stations, including masts installed by the contractor. The
contractor will keep a precise record of all spare equipment stored in the
Control Center warehouse for the purposes of maintaining the system. When an
item of equipment is replaced, the contractor will send the defective item to be
repaired.

During the deployment and trial run stages, the maintenance of all the equipment
supplied by Supplier will be performed by Supplier. The maintenance will be
performed at no additional charge during the warranty period of one year.
Further maintenance of this equipment will be performed according to the
Maintenance Agreement that will be executed between the parties.

Following response times should be insured:

o Every malfunction at the control center will be repaired within 6 hours of
notification.

o Every malfunction at a base station will be repaired within 24 hours of
notification.

Within the warranty period the Supplier shall provide a sufficient level of
Spare Units free of charge, and upon the expiry of the warranty period, the
Buyer will keep a sufficient level of Spare Units to insure the above response
times. Failed equipment will be shipped to Israel for repair and replacement.
The repair time in Israel will be not more than thirty (30) days after receiving
the equipment.

The Buyer will keep a detailed record with regard to the date and type of
malfunctions, the method in which each was handled, and the time it took to
repair the malfunction. Copies of the reports will be submitted to Supplier.

7.  PROJECT MILESTONES

Appendix B of this SOW provides the schedule of the system deployment. Following
are the main milestones of this project and their corresponding completion dates
presented in AED (After Effective Date) terms.

o  Field Survey by Project Team and Preliminary
Design Review                                                     1.5 months AED

o  Local Engineering Team training in Israel                        3 months AED

o  Critical Design Review                                           5 months AED

o  Integration of CC and *** sites in Israel                      6.5 months AED

                                       8

***   Confidential material redacted and filed separately with the Commission.

o  Arrival and custom release of CC and *** sites equipment       7.3 months AED

o  Phase One system integration and Acceptance Testing and
delivery of *** vehicle units                                     9 months AED

o  Integration of *** Phase Two sites in Israel                   7.3 months AED

Testing of Phase Two *** sites system in China                     11 months AED

o  Integration of *** Phase Three sites in Israel                10.5 months AED

Testing of Phase Three *** sites system in China                 13.5 months AED

8.  INFRASTRUCTURE ACCEPTANCE TESTS

These acceptance tests refer to the acceptance by Supplier of the infrastructure
preparations and associated works performed by local contractor with regard to
Control Center and Base Stations. Tests of Base Stations, infrastructure are
specified in Appendix D of this SOW. Tests of the Control Center infrastructure
are specified in Appendix E of this SOW. The tests will be performed by Supplier
in the presence and the assistance of the local contractor.

9.  SYSTEMS ACCEPTANCE TESTS

System Acceptance Testing will be performed according to the Acceptance Test
Procedures that will be agreed upon between the parties. The Acceptance Testing
will be divided into following phases:

- Base Station Acceptance Testing. These tests will demonstrate Base Stations'
equipment compliance with its specifications.

- End user equipment Acceptance Testing. These tests will demonstrate Vehicle
Location Units and Personal Location Unit compliance with their specifications.

- System Acceptance Testing. This testing will be performed upon completion of
the deployment and trial run of Control Center and *** Base Stations. This
testing will demonstrate the overall performance of the system in terms of
operating procedures, location capability, messaging capability, coverage,
interrogation rate (capacity parameter) etc. The testing will be performed using
specified number of Vehicle and Personal Location Units. Upon successful
completion of System Acceptance Testing the System will be officially
transferred to the responsibility of The Buyer. The overview of System
Acceptance concept is presented in Annex II of this Agreement.

                                       9

***   Confidential material redacted and filed separately with the Commission.

10.  REPORTS AND DESIGN REVIEWS

During the performance of the project Supplier will submit a monthly progress
report to The Buyer. The report will include a description of the content of the
work planned for the preceding month in the original plan against actual
performance. The report will include a brief description of irregular incidents
and malfunctions in the implementation of the project. The parties will hold two
Design Reviews, PDR and CDR where the detailed status of the project with a
breakdown of activities performed in relation to planning, and a detailed
working plan for the future will be presented. The Design Reviews will be
performed at the locations designated by The Buyer.

11.  SYSTEM DOCUMENTATION

The Supplier will provide following documentation:

-  Base Station Specifications
-  Vehicle Location Unit Specifications
-  Personal Location Unit Specifications
-  Control Center Diagrams
-  Control Center Infrastructure requirements specifications
-  Base Station Infrastructure requirements specifications
-  Control Center Operating Procedures
-  Fleet Management post Operating Manual
-  VLU and PAL Registration and Activation Procedure
-  System Acceptance Test Procedures
-  Vehicle Location Unit general installation instructions
-  Monthly progress reports
-  Design Reviews documentation

The above documentation will be in English.

                                       10

Local contractors, responsible for Control Center and Base Station
infrastructure preparation, will maintain documentation for each of the sites to
be established. The documentation of the control center will include a detailed
description of the electricity system, including all interim boards and the main
electricity board, specifying the types of cables and automatic switches. The
markings of the switches in the documentation will be identical to their
markings on electricity boards. The documentation of the system will include
diagrams of the connections of all components of the system, specifying numbers
of cables, types of cables, and names of connectors. The markings in the
diagrams will be identical to the markings on cables and connectors.

For each of the base stations the local contractor will prepare a booklet,
indicating the site on a map with a scale of 1:100000. The booklet will also
contain a descriptive diagram of the site and the mast, specifying the
disposition of the dedicated equipment, and digital photographs of the interior
and exterior of the site. The documentation will include a complete address of
the site, precise coordinates of the antennas, the name and telephone numbers of
the site owner, the name and telephone numbers of the contractor's liaison,
details of electricity feeding up to the structure's main board, and the paths
of communication and grounding lines. The local contractor will provide a
detailed description of the connections between components of the system,
including types of cables, their length, and types of connectors. The contractor
will specify the manufacturer's number of each of the items of equipment
installed at the site, including air-conditioner, electricity board, and
components of the locating system. The station's infrastructure acceptance test
report will be attached to the booklet. All of the material will be submitted on
magnetic media and in a hard copy.

In consideration of the mutual obligations assumed under this Annex, Buyer,
Agent and Supplier agree to this Annex, which is executed by duly authorized
representatives as of the dates below:

AGREED BY:

GOLDEN NET COMMUNICATION TECHNOLOGY LTD          DIGITRACK (CHINA) GROUP CO. LTD

By: /s/ [chinese characters]                     By: /s/ [chinese characters]

Title:  Chairman                                 Title:  [chinese characters]

Date:  [chinese characters]                      Date:  [chinese characters]

                                       11

TELEMATICS WIRELESS LTD.

/s/ Avry Franco                                  /s/ Roman Sternberg

By:  Avry Franco                                 Roman Sternberg

Title:  V.P. & C.F.O.                            VP Marketing

Date:  29.08.04                                  29.08.04

                                       12

                               LIST OF APPENDIXES

APPENDIX A:  Equipment List

APPENDIX B:  Project Schedule

APPENDIX C:  Price and Terms of Payment

APPENDIX D:  Infrastructure Acceptance Test - Base Stations

APPENDIX E:  Infrastructure Acceptance Test - Command Center

APPENDIX F:  System Acceptance Test Principles

APPENDIX G:  Operational Control Center general Description

APPENDIX H:  Requirements from Digital Mapping Content

APPENDIX I :  Letter Of Credit Principle Terms

APPENDIX J : End User Equipment Purchase Agreement (to be further discussed and
agreed upon)

                                       13

<TABLE>

                                                                                         ***
----------- ------------------------------------------ -------------------------------- --------------------------------------------
No.         part description                           vendor               part number                         Qty.for installation
----------- ------------------------------------------ -------------------------------- --------------------------------------------

1   ***            ***                                                                                          ***
----------- ------------------------------------------ -------------------------------- --------------------------------------------
2   ***            ***                                                                                          ***
----------- ------------------------------------------ -------------------------------- --------------------------------------------
3   ***            ***                                                                                          ***
----------- ------------------------------------------ -------------------------------- --------------------------------------------
5   ***            ***                                                                                          ***
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6   ***            ***                                                                                          ***
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7   ***            ***                                                                                          ***
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8   ***            ***                                                                                          ***
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9   ***            ***                                                                                          ***
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10  ***            ***                                                                                          ***
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11  ***            ***                                    ***      ***                                          ***
----------- ------------------------------------------ -------------------------------- --------------------------------------------
37  ***            ***                                    ***      ***                                          ***
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38  ***            ***                                    ***      ***                                          ***
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39  ***            ***                                    ***      ***                                          ***
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40  ***            ***                                    ***      ***                                          ***
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41  ***            ***                                    ***      ***                                          ***
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42  ***            ***                                    ***      ***                                          ***
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43  ***            ***                                    ***      ***                                          ***
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44  ***            ***                                    ***      ***                                          ***
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45  ***            ***                                                                                          ***
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46  ***            ***                                                                                          ***
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47  ***                                                                                                         ***
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61                                                                                                              ***
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62  ***                                                                                                         ***
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    ***                                                                                                         ***
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    ***                                                   ***      ***                                          ***
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    ***                                                                                                         ***
    ***                                                                                                         ***
    ***                                                   ***      ***                                          ***
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    ***                                                                                                         ***
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    ***                                                   ***      ***                                          ***
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    ***                                                                                                         ***
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    ***                                                   ***      ***                                          ***
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    ***                                                                                                         ***
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    ***                                                   ***      ***                                          ***
----------- ------------------------------------------ -------------------------------- --------------------------------------------
    ***                                                                                                         ***
    ***                                                                                                         ***
    ***                                                   ***      ***                                          ***
----------- ------------------------------------------ -------------------------------- --------------------------------------------
</TABLE>

***   Confidential material redacted and filed separately with the Commission.

<TABLE>

----------- ------------------------------------------ -------------------------------- --------------------------------------------
No.         part description                           vendor               part number                        Qty. for installation
----------- ------------------------------------------ -------------------------------- --------------------------------------------

    ***                                                                                                         ***
    ***                                                                                                         ***
    ***                                                   ***                                                   ***
----------- ------------------------------------------ -------------------------------- --------------------------------------------
    ***                                                                                                         ***
    ***                                                                                                         ***
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----------- ------------------------------------------ -------------------------------- --------------------------------------------
63  ***                                                                                                         ***
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64  ***                                                                                                         ***
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    ***                                                                                                         ***
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65  ***                                                                                                         ***
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66  ***                                                                                                         ***
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67  ***                                                                                                         ***
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68  ***                                                                                                         ***
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69  ***                                                                                                         ***
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70  ***                                                                                                         ***
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71  ***                                                                                                         ***
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72  ***                                                                                                         ***
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73  ***                                                                                                         ***
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74  ***                                                                                                         ***
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75  ***                                                                                                         ***
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76  ***                                                                                                         ***
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77  ***                                                                                                         ***
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78  ***                                                                                                         ***
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79  ***                                                                                                         ***
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80  ***                                                                                                         ***
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81  ***                                                                                                         ***
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82  ***                                                                                                         ***
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83  ***                                                                                                         ***
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84  ***                                                                                                         ***
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85  ***                                                                                                         ***
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86  ***                                                                                                         ***
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87  ***                                                                                                         ***
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88  ***                                                                                                         ***
----------- ------------------------------------------ -------------------------------- --------------------------------------------
89  ***                                                                                                         ***
----------- ------------------------------------------ -------------------------------- --------------------------------------------
</TABLE>

***   Confidential material redacted and filed separately with the Commission.

Annex I - Appendix B

[GRAPHIC OMITTED]

                                   APPENDIX C

       ITURAN SYSTEM DEPLOYMENT IN SHANGHAI - PRICES AND TERMS OF PAYMENT

This document addresses the following:

o  Deployment cost
o  End-user equipment cost
o  Licensing fees

All the prices presented below are FOB Israel (for relevant items).

1. ITURAN SYSTEM DEPLOYMENT COST

a. System deployment cost is divided as follows:

1. Equipment purchase:

i. Special equipment purchase (manufactured by Telematics)
ii. Standard equipment purchase - Base Stations
iii. Standard equipment purchase - Network Control Center
iv. System and NCC software licensing
v. Standard test equipment for engineering team

2. Engineering and consulting services provided by Telematics

Costs described in this document do not include the cost of local services
provided by local companies and contractors as described in the Statement Of
Work document.

The number of base stations needed for the deployment depends on the size of the
required coverage area. Based on our experience, the average density of the
installation of receiving base stations in urban area is around *** square
kilometers per base station.

We estimate that the deployment in the area of *** square kilometers will
require *** Base Stations. In addition, *** transmitting stations will be
deployed. The prices below are presented for single unit (single Base Station)
and the Total is calculated for convenience for *** Receiving and ***
Transmitting Stations, *** of which include the Calibration Transmitter Unit.
Different quantities will cause corresponding change in total pricing of the
project.

<TABLE>

b. Prices (US$)                                              unit       total

1. Equipment

a. (a.1.a)       Receiving station ***
                 -item 1 & 2 of the Part list:
                 First phase *** stations ***                $         $ ***

                 Second phase *** stations ***               $         $ ***
</TABLE>

                                  1

***   Confidential material redacted and filed separately with the Commission.

<TABLE>

                 Third phase *** stations++                 $ ***      $ ***

                 Total ***                                              $

b. (a.1.b)       Peripheral equipment for
                 Rec.BS *** incl. *** antennas each          +          *

c. (a.1.b)       Paging Transmitter+                         +          +++ ***

d. (a.1.a)       Calibration Transmission Unit
                 *** - (Item 5 of the Part list              $ ***      $ ***

e. (a.1.b)       Peripheral equipment for
                 transmission ***                            +          +

f. (a.1.c)       Computers and telecom. equipment for CC     +          +

g. (a.1.e.)      Standard test equipment                     +          +
</TABLE>

o  +Note1:  This equipment will be purchased by the Buyer.

o ++Note2: The price of $ *** will be the receiving station unit price for
consecutive Base Stations.

o +++Note3: Paging Transmitter can be purchased from Supplier at the price of
$ *** each.

o Note 4: The Buyer recognizes that there is certain cost of each comprehensive
CCP software package. The price will be further discussed and agreed upon.

2.  Licensing

<TABLE>

a. (a.1.d)      System licensing                                N/A      $ ***
ii. (a.1.d)     NCC software licensing                          N/A      $ ***

3.              Engineering; frequency adaptation, system
                modifications, management, supervision,
                training and consulting services by
                Telematics team (incl. salaries,
                accommodation, travel) in accordance with
                SOW, during the deployment of the system
                in Shanghai ***) base stations)                 N/A      $ ***
</TABLE>

Notes:

Local services provided by local companies and contractors according to the SOW
document are not part of this proposal and include (but not limited to):

                                       2

***   Confidential material redacted and filed separately with the Commission.

a. Site survey and rental agreements

b. On-site infrastructure

c. Geodetic measurements

iv. NCC building reconstruction and modifications

2. END-USER EQUIPMENT COST

Prices:

1. Standard vehicle kit:

a.          Vehicle Location Unit type TULIP                               $ ***

*** +installments of $ *** per year for *** years

b.          TULIP installation kit (Note)                              *** $

2. Optional high-end Vehicle Location Unit and Alarm kit:(*)

a.          TULIP                                                          $ ***

*** +installments of $ *** per year for *** years

b.          Vehicle Alarm Unit type MAPLE                              *** $

c.          MAPLE-TULIP installation kit (Note)                        *** $

            (*)MAPLE provides additional level of protection, if required.

3. Personal Alarm and Locator - PAL                                        $ ***

*** +installments of $ *** per year for *** years

Notes:

Installation kits will be produced or purchased locally (excl. antennas). The
prices are for reference only.

3.  TERMS OF PAYMENT

o  Deployment Phase

<TABLE>

a.           Down-payment ( *** % of the total a.l.a special equipment
             cost) paid upon the signature on this Agreement
             (Effective Date - ED)                                       - $ ***
</TABLE>

                                       3

***   Confidential material redacted and filed separately with the Commission.

<TABLE>

ii.       *** % of the System Licensing and *** % of CC software
          licensing (1.5 months AED)                                   - $ ***

iii.      Preliminary Design Review - *** % of 1.b.3 above
          (1.5 months AED)                                             - $ ***

d.        Critical Design Review - *** % of 1.b.3 (5 months AED)       - $ ***

e.        Shipment of CC and *** BS equipment (7.3 months AED)
          *** % of $ ***                                               - $ ***
          *** % of 22% of $ ***                                        - $ ***
                                                                       - $ ***

f.        Installation of CC and *** BS in China (8.3 months AED)
          - *** % of 1.b.3                                             - $ ***
          *** % of the System Licensing and *** % of CC software
          licensing
                                                                       - $ ***

                                                                       - $ ***

g.        Shipment of *** second phase BS (9 months AED)
          *** % of $ ***                                               - $ ***
          *** % of *** % of $ ***                                      - $ ***
                                                                       ------
                                                                       - $ ***

h.        Installation of *** second phase BS (10.7 months AED) -

           *** % of 1.b.3                                              - $ ***

i.        Shipment of *** third phase BS (11.7 months AED)

          *** % of $ ***                                               - $ ***
          *** % of *** % of $ ***                                      - $ ***
                                                                       - $ ***

j.        Installation of *** third phase BS (13.3 months AED)

          *** % of 1.b.3                                               - $ ***

k.        End of the warranty period (26 months AED)
          *** % of the total equipment cost of 1.b.1                   - $ ***
          *** % of frequency adaptation cost                           - $ ***
                                                                       -------
                                                                       - $ ***

          TOTAL                                                        $4277K
</TABLE>

                                       4

***   Confidential material redacted and filed separately with the Commission.

Letter of Credit issued by First Class International Bank for the total sum of
the Deployment Cost less the Down-Payment will be provided no later than thirty
(30) days AED. Principle terms of this LOC are stipulated in Appendix I of this
Annex.

o  End User equipment
*** % down payment and L/C for the remaining *** % with the order.
*** % payment - upon delivery.

TULIPs:
Total price - $ ***

*** % of total cost       - $ ***
Delivery of  ***  units (9 months AED)          - $ ***

Additional $  ***  per year will be paid at the end of each year during five
years (total of $ *** ).

                                       5

***   Confidential material redacted and filed separately with the Commission.

                                   APPENDIX D

                 INFRASTRUCTURE ACCEPTANCE TEST: BASE STATIONS

Base station's infrastructure acceptance tests will consist of the following:

MAST

o Testing the existence and integrity of all permits required for the
establishment and operation of the base station.

o Approval of the mast by a Safety Engineer.

o Results of geodesic measurements.

o Ensuring that the grounding of the mast meets the standards.

o Painting, illumination, climbing ladder.

o Sealing connectors, marking and path of RF cables

o Antennas: reinforcing arms, jumpers.

STRUCTURE

o Dragging and sealing the structure.

o Ensuring that the grounding of the structure meets the standards.

o Acid-resistant floor coating.

o The type and installation of the air-conditioner.

o Antenna concentrator: sealing, marking and grounding, VSWR for adjusting the
antennas.

o Electricity board in the structure: value and types of switches, marking.

o Cabling in the structure: cable ladders, arrangement, marking, connectors.

o Regularity of communication cables (data and dialing) between the station and
the control center.

o Batteries: type of batteries, rack, connectors to power supply and electricity
board.

o Fire extinguisher: type, working order, method of installation, expiry date.

o Illumination, fire/smoke detector, door-opening sensor.

EQUIPMENT

o Setting up bases in the structure.

o Installing units in bases, connections between units, marking.

o Electrical connections, grounding, communication and RF cables to the system's
units.

o Installation of lightning arresters, AC, RF and communication-installation,
marking.

o Running order of all items of the system in accordance with the results of the
self-test of each unit:

o Running order of the station against the control center.

DOCUMENTATION

o A map of the area indicating the site.

o A map of the site indicating the location of the mast, antennas, the structure
and cables paths.

o A drawing of the interior of the structure indicating equipment bases,
batteries, antenna concentrators, electricity board, and entry points of
communication lines.

                                       6

o A drawing of the interior of the equipment base, indicating all units and
cables.

o Photographs of the site, integrity of the documentation, and its concordance
with the site.

                                       7

                                   APPENDIX E

                 INFRASTRUCTURE ACCEPTANCE TEST: CONTROL CENTER

The control center's infrastructure acceptance tests will consist of the
following:

o Tests of all equipment (computers, communication): connection to power,
markings of sockets and communication points.

o Lighting: running order of the lighting, a sufficient quantity, no glare on
monitors.

o Racks: cables ducting, precise and legible markings, and general quality of
work.

o Floating floor: stability, ducting of cables underneath the floor, markings,
and general quality of work.

o Examining the running order of modems for dialing, including connections to
the communication cables.

o Inspection of the air-conditioning system concordance with the plans.

o Inspection of the communication to the sites from the SMC workstations.

o Inspection of the entire layout of the A/B switches.

o Inspection of the UPS system support.

            o Voltage drop in the network.

            o Continuous good running order of the system.

            o Good running order of the emergency lighting.

            o  Generator activation.

            o After generator activation - activation of the air-conditioning
system.

            o Generator drop in order to measure operation time of UPS
batteries.

ADDITIONAL OPERATIONS:

o Listing all spare equipment in the contractor's warehouse.

                                       8

                                   APPENDIX F

                       SYSTEM ACCEPTANCE TEST PRINCIPLES

The system tests at the end of the Pilot deployment will consist of the
following:

OPERATIONAL TESTING OF THE BASE STATIONS

Operational testing of all the components of each Base Station will be performed
during the period of one week, every three hours, by means of diagnostic
programs from the Control Center.

Availability of the following equipment should be reported during the tests:

o  Atomic Clock or GPS Receivers
o  Paging Transmitters
o  Receivers in the Stations (IBSU)
o  Transmitters Controllers (SPCU)

AVAILABILITY TEST OF THE CONTROL CENTER

The test will be based on the current operation of the system and verification
of compliance with Operating Procedures.

TESTS OF COVERAGE AND LOCATION ACCURACY

The Test will include movement of defined number of PAL and VLU units in the
coverage area and the comparison between the actual location and the location
displayed in the Control Center to demonstrate required CEP accuracy. The test
will include at least 1,000 locations.

In all the locations, the following data will be registered:

o Number of receiving stations participating in the location process.

o The coordinates calculated by the system.

o The coordinates displayed at the operators' workstations.

o Actual location as reported from the field.

o Quality of the signal reception (FOM).

o Stability of location

In addition, the performance of message reception will be verified, including
synchronous and asynchronous messaging.

TEST OF CAPACITY PARAMETERS (NUMBER OF LOCATIONS PER SECOND)

The system will be operated in the continuous interrogation manner to
demonstrate required maximum interrogation rate capability.

The above data, after its processing, will enable to evaluate the quality of the
system service.

                                       9

A detailed System Acceptance Test Procedure will be prepared by the Supplier and
agreed upon with The Buyer at PDR.

                                       10

                                   APPENDIX I

                        LETTER OF CREDIT PRINCIPAL TERMS

DOCUMENTS REQUIRED:

A. DOCUMENTS REQUIRED FOR SUPPLY OF BASE STATIONS AMOUNTING TO US$ *** .

1) 3/3 ORIGINALS PLUS 3 NON NEGOTIABLE COPIES OF CLEAN ON BOARD MARINE BILLS OF
LADING MADE OUT TO ORDER OF ISSUING BANK MARKED PAYABLE AT DESTINATION" NOTIFY:
APPLICANT.

AND/OR

AIRWAYBILL (3RD ORIGINAL FOR SHIPPER) CONSIGNED TO ISSUING BANK MARKED PAYABLE
AT DESTINATION" NOTIFY: APPLICANT.

2) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

3) PACKING LIST IN 3 ORIGINALS AND 3 COPIES.

B. DOCUMENTS REQUIRED FOR SUPPLY OF END USER EQUIPMENT AMOUNTING TO US$ *** .

1) 3/3 ORIGINALS PLUS 3 NON NEGOTIABLE COPIES OF CLEAN ON BOARD MARINE BILLS OF
LADING MADE OUT TO ORDER OF ISSUING BANK

MARKED PAYABLE AT DESTINATION" NOTIFY:  APPLICANT.

AND/OR

AIRWAYBILL (3RD ORIGINAL FOR SHIPPER) CONSIGNED TO ISSUING BANK MARKED PAYABLE
AT DESTINATION" NOTIFY: APPLICANT.

2) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

3) PACKING LIST IN 3 ORIGINALS AND 3 COPIES.

C. DOCUMENTS REQUIRED FOR PRELIMINARY DESIGN REVIEW AMOUNTING TO US$ *** .

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

                                       11

***   Confidential material redacted and filed separately with the Commission.

2) ORIGINAL CERTIFICATE JOINTLY SIGNED BY THE BENEFICIARY AND THE APPLICANT,
CERTIFYING THAT PRELIMINARY DESIGN REVIEW HAS BEEN COMPLETED AND THE REPORT HAS
BEEN PROVIDED TO THE APPLICANT.

D. DOCUMENTS REQUIRED FOR CRITICAL DESIGN REVIEW AMOUNTING TO US$ ***

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

2) ORIGINAL CERTIFICATE JOINTLY SIGNED BY THE BENEFICIARY AND THE APPLICANT,
CERTIFYING THAT CRITICAL DESIGN REVIEW HAS BEEN COMPLETED AND THE REPORT HAS
BEEN PROVIDED TO THE APPLICANT.

E. DOCUMENTS REQUIRED FOR INITIAL LICENSE FOR SYSTEM USE AND CC SOFTWARE USE
AMOUNTING TO US$ ***

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

2) ORIGINAL BENEFICIARY'S CERTIFICATE CERTIFYING THAT INITIAL LICENSE FOR SYSTEM
USE AND FOR CC SOFTWARE USE HAS BEEN SENT TO THE APPLICANT BY DHL AND THE
RELATIVE DHL SHIPMENT AIRWAY BILL IS REQUIRED.

F. DOCUMENTS REQUIRED FOR FINAL LICENSE FOR SYSTEM USE AND CC SOFTWARE USE
AMOUNTING TO US$ ***

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

2) ORIGINAL BENEFICIARY'S CERTIFICATE CERTIFYING THAT FINAL LICENSE FOR SYSTEM
USE AND FOR CC SOFTWARE USE HAS BEEN SENT TO THE APPLICANT BY DHL AND THE
RELATIVE DHL SHIPMENT AIRWAY BILL IS REQUIRED.

3) ORIGINAL APPLICANT'S DECLARATION STATING THAT INSTALLATION OF TEN FIRST PHASE
BASE STATIONS AND NCC IS COMPLETED.

G. DOCUMENTS REQUIRED FOR INSTALLATION AMOUNTING TO US$ ***

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

2) ORIGINAL DECLARATION JOINTLY SIGNED BY BENEFICIARY AND APPLICANT STATING THAT
INSTALLATION OF FIRST OR SECOND OR THIRD PHASE HAS BEEN COMPLETED.

                                       12

***   Confidential material redacted and filed separately with the Commission.

(THE DECLARATION SHALL INCLUDE A NAME OF ONE OF THE FOLLOWING INSTALLATION
MILESTONES).

- INSTALLATION OF *** FIRST PHASE BASE STATIONS.

- INSTALLATION OF *** SECOND PHASE BASE STATIONS.

- INSTALLATION OF *** THIRD PHASE BASE STATIONS.

3) ORIGINAL DECLARATION OF THE BENEFICIARY STATING THAT THE WARRANTY PERIOD HAS
EXPIRED.

PAYMENT TERMS:

I) L/C PORTION COVERING SUPPLY OF BASE STATIONS OF US$ *** REPRESENTS
   *** PERCENT OF THE RELEVANT CONTRACT VALUE AND WILL BE PAID.

AT SIGHT AGAINST PRESENTATION OF DOCUMENTS STIPULATED IN ITEM A AS FOLLOWS:

$  *** FOR PHASE ONE *** BASE STATIONS,
$  *** FOR PHASE TWO *** BASE STATIONS,
$  *** FOR PHASE *** BASE STATIONS,
$  *** WILL BE PAID AT SIGHT AGAINST PRESENTATION OF ORIGINAL BENEFICIARY'S
DECLARATION STATING THAT WARRANTY PERIOD FOR BASE STATIONS HAS EXPIRED.

THE OUTSTANDING *** PERCENT OF THE RELEVANT CONTRACT VALUE IS PAID AS
ADVANCE PAYMENT OUTSIDE THE L/C FRAMEWORK.

2) L/C PORTION COVERING SUPPLY OF END USER EQUIPMENT OF US$ *** REPRESENTS
  *** PERCENT OF THE RELEVANT CONTRACT VALUE AND WILL BE PAID AT SIGHT
AGAINST PRESENTATION OF DOCUMENTS STIPULATED IN ITEM B.

THE OUTSTANDING *** PERCENT OF THE RELEVANT CONTRACT VALUE IS PAID AS ADVANCE
PAYMENT OUTSIDE THE L/C FRAMEWORK.

3) L/C PORTION COVERING DELIVERY OF INITIAL SYSTEM USE AND CC SOFTWARE USE
LICENSES OF $ *** WILL BE PAID AT SIGHT AGAINST PRESENTATION OF DOCUMENTS
STIPULATED IN ITEM E.

4) L/C PORTION COVERING DELIVERY OF FINAL SYSTEM USE AND CC SOFTWARE USE
LICENSES OF $ *** WILL BE PAID AT SIGHT AGAINST PRESENTATION OF DOCUMENTS
STIPULATED IN ITEM F.

                                       13

***   Confidential material redacted and filed separately with the Commission.

5) L/C-PORTION COVERING DELIVERY OF PRELIMINARY DESIGN REVIEW IS US$ *** AND
WILL BE PAID AT SIGHT AGAINST PRESENTATION OF DOCUMENTS STIPULATED IN ITEM C.

6) L/C PORTION COVERING DELIVERY OF CRITICAL DESIGN REVIEW IS US$ *** AND
WILL BE PAID AT SIGHT AGAINST PRESENTATION OF DOCUMENTS STIPULATED IN ITEM D.

7) L/C PORTION COVERING INSTALLATION IS US$ *** . THIS SUM WILL BE PAID AS
FOLLOWS:

AT SIGHT AGAINST PRESENTATION OF DOCUMENTS STIPULATED IN ITEM G.1) AND G.2).

$  *** FOR INSTALLATION OF *** FIRST PHASE BASE STATIONS
$  *** FOR INSTALLATION OF *** SECOND PHASE BASE STATIONS
? $ *** FOR INSTALLATION OF *** THIRD PHASE BASE STATIONS

AND AT SIGHT AGAINST PRESENTATION OF DOCUMENTS STIPULATED IN ITEM G.1) AND G.3)
ON THE SUM $ *** FOR EXPIRATION OF WARRANTY PERIOD.

                                       14

***   Confidential material redacted and filed separately with the Commission.

                                   APPENDIX G

             Ituran Location System Operational Control Center (CC(

                              General Description

                                  August 2004

                               [GRAPHIC OMITTED]

                                       1

GENERAL

THE PURPOSE OF THIS DOCUMENT IS TO DESCRIBE ITURAN'S OPERATIONAL CONTROL CENTER.

Ituran Operational NCC configuration

[GRAPHIC OMITTED]

EVENT SERVER

GENERAL

The Event server functionality manages the operational CC's activities. It
receives all incoming alarms received by the Ituran location system from the end
units and routes them to operator workstations. All the operator workstations
are connected to this server. In addition, the workstations are connected to the
location system gateway, and through this gateway they are able to send commands
to the end units and receive messages from the end units (such as location and
various status messages).

The Event Server also takes part in the unit activation process, the concluding
part of every new end unit installation.

MAIN USER INTERFACE

o List of connected Operator Workstations with list of events in every station
and their status

o Communication monitor to the Operator Workstations over TCP/IP

o Control of all the CC's operational parameters (method of workstation routing
and load balancing, operational policy control, workstation role definitions
etc.)

[GRAPHIC OMITTED]

COMMUNICATION TO OPERATOR WORKSTATIONS

The Event Server is connected over TCP/IP to the Operator Workstations. Each
incoming Event message is routed to a workstation selected according to a few
alternate algorithms (the least busy workstation, the "next available" or
according to event type). Only this station can then handle this incoming event.

Main features are:

o New incoming event will be routed to the relevant Operator Workstation that
has currently the lowest number of pending events, or by other parameters
detailed above.

o New event will be added to the list of events.

o An option to temporarily stop routing new events to a specific Controller
Station

                                       2

o Temporarily or permanently close down a specific Operator Workstation and
transfer existing events to another Operator Workstation.

o Transferring events from one Operator Workstation to another Operator
Workstation

o Automatic synchronization between Operator Workstation and Event Server upon
re-connection.

OPERATOR WORKSTATION

Operator Workstation main features:

o One, two or four opened mapping windows with option to display a different
type of map in each window (subject to maps availability).

o A list of open events and their status

o Automatic sorting of incoming alarms risk level based on operational scenarios
entered into the system

o Full and unit communication abilities, allowing it to both monitor the unit
status and send commands to the unit

o Support vector, raster and aerial photo maps

o Specific vehicle real-time tracking

[GRAPHIC OMITTED]

VEHICLE DETAILS SCREEN

This screen displays all vehicle telematics information such as: sensors,
location, velocity and direction (subject to availability of relevant sensors in
the vehicle).

[GRAPHIC OMITTED]

VEHICLE COMMAND DIALOG OPTION

This dialog option is used for sending various commands to the vehicle,
including: location, enabling/disabling vehicle devises.

[GRAPHIC OMITTED]

VEHICLE DISPLAY ON THE MAP

The vehicle will be displayed on the map with an icon. The icon is derived from
the relevant vehicle group.

[GRAPHIC OMITTED]

RECORD AND REPLAY

All incoming and outgoing messages are recorded. The Controller can invoke a
report on any desired event. The report is generated as a table of events, which
can be replayed graphically on the map.

                                       3

                                 ANNEX I - SOW

                                   APPENDIX H

                           Requirements from Digital
                                Mapping Content

                              LOCATIONNET GIS V2.1

                                  AUGUST 2004

                                       1

1.  GENERAL

LocatioNet real-time GIS engines use an underlying layer of propriety GIS binary
data, which is built from spatial databases (digital mapping content). Spatial
databases are supplied by data providers that collect and distribute digital map
information. There are many data providers around the world with different
distribution formats. LocatioNet recommends using data from one of the two major
and leading vendors, TeleAtlas or NavTech if possible, yet will work with the
Operator's chosen vendor. The two most popular data formats used for
distribution are Mif/Mid text files (developed by Maplnfo) and binary Shape
files (developed by ESRI). Data can be easily transformed from one format to the
other. Digital data includes two types of information: geographical layers and
the road network. The geographical layers are used for vector maps drawing. The
road network is used for drawing, routing, creating geocode databases and
reverse geocoding.

1.1  GEOGRAPHICAL LAYERS

Each geographical layer binds geographical items with a common denominator (e.g.
gas stations, parks etc.) .Each geographical item has a set of coordinates that
define its location and shape, and a set of attributes that define its look on
the map. The shapes can be of any type, such as: points, lines, polylines,
polygons and regions (xor combinations of multiple polygons).

Examples for geographical layers:
o  Administrative areas (e.g. states, provinces, cities etc.)
o  Water areas (e.g. rivers, lakes, ponds etc.)
o  Woodland
o  Parks
o  Railroads
o  POI (points of interest) (e.g. restaurants, hospitals, gas stations etc.)

1.2  ROAD NETWORK LAYER

The road layer represents the road network. This layer is very complex;
therefore a lot of information is needed. The road network consists of
intersecting roads. An intersection between two roads is called a node
(junction). A section of a road that lies between two nodes is called a road
segment; therefore every segment has a starting node and an ending node. Each
road can be constructed from one or more road segments. Each road segment has a
set of coordinates that define its location and shape, and a set of attributes
that define the complexity of use of this layer. The shape of a road segment is
always a line or a polyline.

[GRAPHIC OMITTED]

2  MAPS ENGINE

The vector maps engine displays both geographical layers and the road network.

2.1  MINIMUM REQUIREMENTS FOR AN OBJECT IN A GEOGRAPHICAL LAYER

- Unique object id

                                       2

- Name (if any, or blank)

2.2  ADDITIONAL REQUIREMENTS FOR AN OBJECT IN A GEOGRAPHICAL LAYER

Type (i.e.  in the water layer, types can be: river, lake, pond etc.)

Once the type is supplied, there is an option to control each type's draw
attributes separately, instead of applying the same attributes for the entire
layer.

2.3  MINIMUM REQUIREMENTS FOR DRAWING A ROAD SEGMENT

Segment id, unique in its country

Road level (i.e.  national, between cities, main in city, neighborhood etc.)

Road levels function the same way as geographical layers types.

2.4  ADDITIONAL REQUIREMENTS FOR DRAWING A  ROAD SEGMENT

Road type (i.e. highway, ramp, bridge, tunnel, circuit, pedestrian walkway etc.
- allow drawing special features inside road levels)

Road Z level (i.e. a bridge going over a road will have a higher z level)

Route number, if available.

Road name constructed of prefix, base name and suffix (i.e. if there isn't any
sufficient space to draw Calle de Zurita Maria, perhaps there is for Zurita)

Road dividers.

Traffic lights

3.  GEOCODE ENGINE

The road network is also used for building geocode databases (i.e. all the
cities in state, all the streets in city etc.), and for reverse geocoding (i.e.
getting the address of a given coordinates). It is important to get a
description of the administrative hierarchy that the data supports, in order to
fully understand each country's attributes (e.g. Israel has county, cities and
streets while Austria has country, states, cities and streets, etc.).

3.1  MINIMUM GEOCODE REQUIREMENTS

City name of road segment

Road name of road segment

SUPPORTING MINIMUM REQUIREMENTS WILL ALLOW THE GEOCODE TO PERFORM THESE TASKS:

o Return roads' center coordinates

o Transform coordinates into partial addresses

o Get supported countries list

o Get the cities list in state

o Get the roads list in city

                                       3

o Get the cities list in circle or in a rectangle

o Get the roads list in a circle or in a rectangle

3.2  ADDITIONAL GEOCODE REQUIREMENTS

(In each road segment, extra but important)

Zone name in city (neighborhood)
Region name in state (province, canton etc.)
State name in country
Left side house number format (i.e. 0 - odd, E - even, M - mix, U- undefined)
Left from house number (as integer)
Left to house number (as integer)
Left zip code
Right side house number format (as mentioned above)
Right from house number (as integer)
Right to house number (as integer)
Right zip code Road official name and other alternative names
Each roadside may has a different name
Each roadside may belongs to a different city

SUPPORTING EXTRA REQUIREMENTS WILL ALLOW THE GEOCODE ENGINE TO PERFORM THESE
TASKS:

o Convert full addresses into coordinates
o Transform coordinates into full addresses
o Get the cities list in zip code
o Get the roads list in zip code

SUPPORTING EACH SEGMENT'S FROM NODE ID AND TO NODE ID WILL ALLOW THE GEOCODE
ENGINE TO PERFORM THESES TASKS:

o Return a coordinate of an intersection between two roads
o Get the intersections list in a circle or in a rectangle
o Get all intersecting road names to a given road

                                       4

                                    ANNEX II

SYSTEM ACCEPTANCE TEST PRINCIPLES

The system tests at the end of the Pilot deployment (NCC and 10 Base Stations in
Shanghai) will consist of the following:

OPERATIONAL TESTING OF THE BASE STATIONS

Operational testing of all the components of each Base Station will be performed
during the period of one week, every three hours, by means of diagnostic
programs from the Control Center.

Availability of the following equipment should be reported during the tests:

o  Atomic Clock or GPS receivers
o  Paging Transmitters
o  Receivers in the Stations (IBSU)
o  Transmitters Controllers (SPCU)

AVAILABILITY TEST OF THE CONTROL CENTER

The test will be based on the current operation of the system and verification
of compliance with Operating Procedures.

TESTS OF COVERAGE AND LOCATION ACCURACY

The Test will include movement of defined number of PAL and VLU units in the
coverage area and the comparison between the actual location and the location
displayed in the Control Center to demonstrate required CEP accuracy. The test
will include at least 1,000 locations.

In all the locations, the following data will be registered:

o Number of receiving stations participating in the location process.
o The coordinates calculated by the system.
o The coordinates displayed at the operators' workstations.
o Actual location as reported from the field.

o  Quality of the signal reception (FOM.(
o  Stability of location

In addition, the performance of message reception will be verified, including
synchronous and asynchronous messaging.

TEST OF CAPACITY PARAMETERS (NUMBER OF LOCATIONS PER SECOND)

The system will be operated in the continuous interrogation manner to
demonstrate required maximum interrogation rate capability.

The above data, after its processing, will enable to evaluate the quality of the
system service.

                                       1

A detailed System Acceptance Test Procedure will be prepared by the Supplier and
agreed upon with the Buyer at PDR.

                                       2

                                   ANNEX III

[GRAPHIC OMITTED]

                                       1

                                    ANNEX IV

BASIC TECHNICAL DESCRIPTION OF ITURAN SYSTEM

INTRODUCTION

Ituran system is among most advanced location systems existing today. With over
350,000 users in Israel, United States and South America it is also the largest
urban area location system in the world. Derived from most sophisticated
military technology and a result of multimillion-dollar development investment,
Ituran system provides accurate location on the street, in the building and in
the conditions of intentional or unintentional jamming. No other existing
technology, including GPS and cellular-based systems, can provide the
performance of the Ituran system.

1  GENERAL OVERVIEW

1.1  THE SYSTEM

A.  SYSTEM PROFILE

The Ituran real-time positioning system with two-way messaging is a solution,
for commercial applications such as:

o fleet management and monitoring
o cargo tracking o remote data collection
o personnel monitoring

as well as for emergency and security challenges including:

o  stolen vehicle recovery
o  emergency and medical distress
o  roadside assistance

and other applications.

Ituran uses a terrestrial network of base stations to effectively track and
communicate with mobile objects of any type. In addition to the Vehicular
location units that support the above applications, Personal location units
support such applications as locating children and Alzheimer patients, and
tracking employees and emergency personnel. Similar equipment may be used to
track parcels and packages.

The sophisticated, proprietary algorithms developed for Ituran ensure accurate
positioning readings not only in open areas, but also in locations covered by
foliage or blocked by tall buildings. As opposed to GPS based systems, Ituran
supports reliable coverage even indoors, at home and in the office.

Ituran's proven, state-of-the-art spread spectrum technology, derived from
challenging military applications, guarantees maximum immunity to
electromagnetic disturbances and maximum

                                       1

reliability even within dense urban environments. Unlike GPS/cellular-based
technology, Ituran is the only available technology that will withstand the
intentional jamming of the in-vehicle equipment, which will definitely be
exercised by thieves ones the spread of location-based security systems will be
widen.

B.  SYSTEM CONCEPT

Manual and automatic operations are complementary in the Ituran system. Location
and communication activities can be initiated in several ways; however, the
system's essential functionality is defined by a series of transmissions to the
vehicle and from it.

[GRAPHIC OMITTED]

An inquiry, which is input into the system at the Network Control Center (NCC),
triggers a Downlink signal. The Downlink is transmitted in POCSAG format by the
pager transmitters and is addressed to a specific mobile unit (TULIP or PAL
..(Upon receiving this inquiry, the mobile unit will reciprocate by sending an
Uplink transmission which contains data as well as the signal required to
calculate the unit's absolute position. Alternatively, the Uplink transmission
can be triggered by sensing specially defined event, like activation of
vehicle's alarm system, activation of an emergency button or any other sensor,
as programmed in the mobile unit. This Uplink is received at the base stations
which note its TOA (Time Of Arrival) and which then relay this data to the NCC
computer. The location calculations are processed at the NCC and a location fix
is obtained using the Differential Time Of Arrival (DTOA) technique. This data
may then be channeled from the NCC to various users, such as fleet owners or the
security forces.

DTOA technique is based on the concept of comparing between exact times when the
same signal is received at several geographically dispersed known locations
(Base Stations). The geometrical curve representing equal time (= range)
difference between any point on this curve and two Base Stations is hyperbola.
When signal from the vehicle is received by several Base Stations, the NCC
creates hyperbolic curves for each pare of the above Base Stations and
calculates the crossing point of these hyperbolic curves. This point is the
exact location of the terminal location unit.

C.  SYSTEM COMPONENTS

Ituran is comprised of the following components:

1.  Mobile Units

[GRAPHIC OMITTED]

TULIP                          TULIP + MAPLE

Vehicular Location Units (TULIPs) are discretely installed in vehicles. They
deliver real-time positioning and two-way data transmission. The data can be
used to relay written messages (in Fleet management applications, using optional
Driver Terminals), to report the status of the

                                       2

various sensors, or to activate any electronic device on board the vehicle.
TULIPs can be interfaced with special vehicle alarm system MAPLE providing
comprehensive protection and location solution. Alternatively, interfacing with
existing alarm systems is possible.

The Personal Alarm and Location (PAL) units may be carried by individuals or
attached to packages and enable accurate positioning of the carrier in
emergencies or at the request of a third party.

2.  Base Stations

[Two Graphics Omitted]

Receiving (right) and transmitting (left) Base Stations

Scattered base stations are used for complete coverage of the required area. The
base station at each location houses a transmitting or a receiving unit, or
both. The base station equipment channels commands and signals between the
Mobile Units and the Network Control Center.

3. Network Control Center (NCC)

Data originating at the Mobile Units is received at the NCC (there, all
positioning calculations are carried out by the NCC computers) and the results
are presented in such a way so as to fit the operational requirements of the
various Ituran users. Relevant data is relayed forward to the optional,
independent Client Command Posts (CCP) at the fleet manager's office.

General description of Network Control Center is provided in Appendix G of Annex
I (SOW) of this Agreement.

4. Client Command Posts (CCP)

The optional CCPs can be installed at the end-user's preferred location. CCP
comprised of standard PC equipment and are used by fleet operators and security
forces for assistance or pursuit. Private fleets are independently monitored by
the company's own personnel, using dedicated fleet management software. All
location and messaging data is channeled through the NCC.

1.2  APPLICATIONS

The operational flexibility of the Ituran System lends itself to an assortment
of applications. Among these, three major ones stand out:

i.  STOLEN VEHICLE TRACKING

[GRAPHIC OMITTED]

Ituran's characteristics make it uniquely suited for real-time surveillance
activities, in hundreds of thousands of vehicles simultaneously. A real-time
alert, triggered by the TULIPs complimentary vehicle alarm system, is the key to
thwarting theft attempts in their early stages.

                                       3

By collecting the required data promptly, the control center may activate the
security forces at its disposal efficiently, thus avoiding costly and risky
recovery operations.

By breaking into an Ituran protected vehicle and tripping its alarm system, a
thief will unknowingly trigger the vehicle's TULIP to transmit a silent alert.
This signal relays both location data and data regarding the status of the
various sensors installed on the vehicle.

The operators at the NCC will proceed to verify the authenticity of the alarm.
Once this is confirmed, the Police are notified and are continuously guided to
the suspect as he attempts to escape. A chase may develop or else a roadblock
may be set up to apprehend the thief and return the vehicle to its rightful
owners.

Moreover, the NCC operator, constantly monitoring vehicle's whereabouts, can
remotely activate/deactivate vehicle's controls, such as ignition, doors etc.,
thus stopping the vehicle or providing additional services.

ii.  PERSONAL SECURITY

[GRAPHIC OMITTED]

Ituran's portable location unit (PAL) offers a unique technological solution
whose practical implementation is as diverse as it is profound. The very
possibility of being able to accurately locate a person, both outdoors and
indoors as he goes about his daily activities is highly innovative.

All types of field workers and Police personnel are susceptible to distress
situations as they go about their jobs. Ituran enables them to send a panic
signal at the first sign of trouble and enables their supervisors to locate them
and assist them immediately. Such capabilities are equally important for heart
patients and other medically insecure individuals who require that the panic
button be operable everywhere.

Ituran PAL offer reassurance to those who care for others throughout the day.
There is peace of mind in knowing that an elderly parent or a child may always
be contacted and located.

Another market addressed by PAL is tracking of cargo and individual parcels. The
location data may be used both to increase delivery efficiency and to recover
the merchandise in case of theft.

iii.  FLEET MANAGEMENT AND CARGO PROTECTION

[GRAPHIC OMITTED]

Fleet management tools have long ago become a necessity rather than a luxury.
Ituran puts the fleet manager in direct contact with the fleet and serves three
main purposes:

o It enables fleet managers to know the whereabouts of their vehicles in
real-time, thus increasing efficiency by reducing overtime, eliminating
side-jobs, and improving schedule and route adherence.

                                       4

o It improves the communication between dispatcher and drivers, thus minimizing
missed deliveries, unscheduled delays and customer complaints. It enables
dispatchers to exercise the real-time flexibility often required for efficient
use of the fleet resources.

o It enhances driver security serving as a real-time panic button. In addition,
the fleet's vehicles and cargo may be conveniently tracked thus reducing theft
related liabilities significantly.

2.  COMMUNICATIONS PROCESS AND LINKS - DESCRIPTION

2.1  THE ITURAN WIRELESS COMMUNICATIONS PROCESS

Ituran uses sophisticated Differential Time Of Arrival (DTOA) and spread
spectrum Technologies and constitutes a fully independent system that fills two
basic functions:

o  Tracking of the Mobile Units
o  Two way wireless messaging

Two radio links connect the Network Control Center (NCC) with the Mobile Units.

2.2  THE COMMUNICATIONS LINKS

A.  DOWNLINK

The narrowband downlink signal is sent by the NCC, through the pager
transmitters, and is addressed to a specific Mobile Unit. The downlink transmits
commands which trigger the Mobile Unit to do one or more of the following:

o Transmit a positioning signal called the Location/Response link.
o Check the sensors and transmit their status through the Response link.
o Optional activate a function in the vehicle (e.g. turn off the engine, switch
  on the alarm, lock/unlock doors etc.).
o Display an alphanumeric message on the mobile unit's optional LCD screen.

B.  UPLINK: THE LOCATION/RESPONSE LINK

The Location link is a direct sequence, spread spectrum transmission, which is
received by at least four base stations. Each base station is equipped with an
extremely accurate time mechanism which records the precise time the signal is
received. The measurements are then relayed to the NCC through a physical
terrestrial link. DTOA (Differential Times Of Arrival) calculations conducted at
the NCC reveal the Mobile Unit's location.

The Response link is a transmission received by any of the base stations and
relayed to the NCC. It includes two types of data:

o  Status data from the Mobile Unit's sensors or alarm
o  Alphanumeric data originating at the optional Mobile Unit's driver's terminal

2.3  COMMUNICATIONS SPECIFICATIONS

                                       5

A.  THE DOWNLINK

The Downlink communication protocol is a standard pager POCSAG protocol (data
transfer at 2400 bps). The pager transmitters are a slightly modified version of
standard, off-the-shelf products.

The transmitted power is variable (150 - 300w), depending on the density and the
location of the pager infrastructure. The Downlink uses a synchronized Simulcast
mode.

Spectrum requirements: 25 KHz bandwidth 12.5+/-) KHz). Modulation type - FSK

B.  THE UPLINK.

The Uplink link for location purposes is a direct sequence, spread spectrum
signal. It enjoys high immunity to electromagnetic disturbances and jamming and
enables future addition of CDMA capability for system capacity increase. The
modulation is BPSK with chip rate of 1.5MBps.

In Response Link mode, the uplink utilizes BPSK modulation with 12KBps data
transmission, in time slots allocated by system's TDMA protocol.

                                       6

                                    ANNEX V

TASKS TO BE PERFORMED BY TELEMATICS AND ITURAN TEAMS

1.  GENERAL

This ANNEX specifies tasks to be performed by Telematics and Ituran teams
(hereinafter called Telematics team) during the turn-key project of the
deployment of Ituran System. These tasks are in full compliance with the
provisions of the Statement Of Work (ANNEX I of this Agreement) and the goal of
this document is to concentrate the tasks to be performed by the supplier.

2.  PLANNING

A detailed project planning will be performed by Telematics team, to assure
meeting the project schedule as described in Appendix B of ANNEX I of this
Agreement. The detailed plan will be presented at PDR.

3.  TRAINING OF LOCAL ENGINEERING TEAM

Telematics team will perform training of the local team as presented in section
3.3 of ANNEX I (SOW). This training will be at the level to insure further
deployment, operation and maintenance of Ituran system by the local team. The
local team will be at the adequate technical level as described in the above
section.

The above local team will actively participate in all stages of the deployment
process under the supervision of Telematics personnel. They all (especially the
engineers) must have good knowledge of English language. Telematics team will
perform an initial training at Ituran and Telematics facilities in Israel for
about two weeks. Afterwards the local team will work together with Telematics
team in China, continuing its training in OJT form. After the deployment,
integration and initial operation of the first *** Base Stations in Shanghai
(phase one), the local team will perform further deployment of additional Base
Stations under the strict supervision and "as needed" involvement of Telematics
team. In parallel, the local team will prepare the required Installation and
Operating instructions in Chinese, based on their training and experience
gathered during the deployment process and the documentation provided by
Telematics team.

4. SPECIAL EQUIPMENT MODIFICATIONS AND ADAPTATION

In order to enable operation of Ituran system in China, Telematics team will
perform certain engineering changes to the existing Ituran system. These changes
include:

i. Adaptation to the operation on the allocated frequencies (frequency shift).
This task includes the modifications of all the necessary circuitry of Base
Stations, TULIPS and PALs.

ii. Performance of the necessary verifications of modified equipment according
to the company quality assurance plan.

                                       1

***   Confidential material redacted and filed separately with the Commission.

iii. Adaptation of the "man - machine interface" (MMI) to the needs of Chinese
operators of the system (Chinese language).

5. BASE STATIONS MANUFACTURING AND NCC INTEGRATION

Telematics team will produce the special components of the Base Stations, and
perform in Israel full integration of Base Station's racks together with the
standard equipment purchased and provided by the Buyer (Buyer furnished
equipment) before the shipment.

Telematics team will perform in Israel integration of NCC, based on the standard
computing equipment purchased and provided by the Buyer.

6.  NETWORK DESIGN

Upon completion of the field survey, Telematics team will perform the System
Network design. As a result of this design, a primary deployment map and a list
of sites according to priorities will be performed by Telematics team and
provided to the Buyer for location of the appropriate sites.

7.  NCC PREPARATION AND DEPLOYMENT

Telematics team will prepare the specifications for the setting up the Control
Center. The Chinese contractor, chosen by the Buyer and approved by Telematics
team, will plan and set up the infrastructures as described in sections 4.1 and
4.2 of ANNEX I. Telematics team shall approve all the plans before the
implementation stage. Upon the completion of the infrastructure preparation by
local team, Telematics team will perform infrastructure acceptance tests as
specified in Appendix E of ANNEX I (SOW):

Integration and testing of Control Center's equipment will be performed by
Telematics Wireless team together with the Local Engineering team. Initial
integration of the equipment for the Control Center will be performed in Israel
with participation of the Local Engineering team.

8.  BASE STATIONS DEPLOYMENT

Telematics team will perform its relevant tasks described in the section 5 of
ANNEX I. These tasks will include:

i. Verification and approval of the candidate sites

ii. Specification and requirements for the infrastructure installations at the
sites

iii. Approval of local contractor's plan of the construction

iv. Acceptance testing of the Base Stations sites infrastructure as specified in
Appendix D of ANNEX I (SOW)

v. Connection of the Base Station's racks to the on-site infrastructures

vi. Integration with Control Center as described in

                                       2

9. SYSTEM INTEGRATION AND TESTING

Telematics team will perform full system integration upon installation of NCC
and Base Stations. Following the integration phase System acceptance testing
will be performed. This testing will be preceded by the Acceptance Testing of
Base Stations and Acceptance Testing of End User equipment. The detailed
procedures of Acceptance testing will be summarized at CDR. The principles of
System Acceptance concept are presented in Appendix F of ANNEX I (SOW) and
repeated in ANNEX II of this Agreement.

10.  REPORTS AND DESIGN REVIEWS

During the performance of the project Telematics team will submit a monthly
progress report to the Buyer. The report will include a description of the
content of the work planned for the preceding month in the original plan against
actual performance. The report will include a brief description of irregular
incidents and malfunctions in the implementation of the project. The parties
will hold two Design Reviews, PDR and CDR where the detailed status of the
project with a breakdown of activities performed in relation to planning, and a
detailed working plan for the future will be presented. The Design Reviews will
be performed at the locations designated by the Buyer.

11.  DOCUMENTATION

Telematics team shall prepare documentation as specified in section 11 of the
ANNEX I (SOW).

                                       3

                                    ANNEX VI

                  MAINTENANCE AND SUPPORT AGREEMENT PRINCIPLES

This ANNEX presents the principles of Maintenance and Support Agreement to be
executed between the parties before the end of Warranty period. This Agreement
will define the Support of Supplier team provided to the Buyer to insure proper
operation of Ituran System in the Region form the technical aspects.

1. The Agreement shall address following principal issues: End User Equipment,
Base Stations equipment, System Software and System level support.

i.  End User equipment

The maintenance of End User equipment will be performed at the local
manufacturing facility. A unit repair price list will be established and agreed
upon between Buyer and Supplier, based on the average time, material cost and
agreed margin. When the repair will be impractical, the unit will be replaced
with the new unit at new unit price.

Buyer will keep adequate stock of spare End User units at relevant locations to
insure fast turnaround time for the Buyer.

ii.  Base Stations

The maintenance of Base Stations will be performed at the local manufacturing
facility at the level corresponding to the level of local manufacturing at that
time, and at Supplier facility for the higher levels until the local facility
will be ready for the high level maintenance. A unit repair price will be based
on the actual repair time, material cost and agreed margin.

Buyer will keep adequate stock of spare Base Stations unit locations to insure
fast turnaround time for the Buyer.

iii.  System level Support and System Software

In consideration of and due to the payment as specified in paragraph 5 of this
ANNEX, the Supplier shall provide Support Services in response to submission of
a fault report by the Buyer relating to a suspected defect or error in the
Supplier's Software or other system component causing the system's performance
depart from its specifications.

The Supplier shall perform such Support services necessary to insure that
Suppliers software or other system component perform according to the
specifications.

The Supplier shall provide Support Services during its normal working hours. The
Supplier shall use its best efforts to provide emergency support outside of
these hours. The Buyer shall, if so requested by the Supplier, give the Supplier
a listing of output and any other data which the Supplier requires in order to
reproduce operating conditions similar to those present when any defect or error
in the Supplier's Software was discovered.

                                       4

2.  Exclusions

Support Services to be provided by the Supplier under this Agreement do not
include:

i. correction of errors or defects caused by operation of the Supplier's
Software or the Designated Hardware in a manner other than that specified by the
Supplier;

ii. correction of errors or defects caused by modification, revision, variation,
translation or alteration of the Supplier's Software or Hardware not authorized
by the Supplier;

iii. correction of errors caused by the use of computer programs not licensed by
the Supplier to the Buyer;

iv. correction of errors caused by the failure of the Buyer to provide suitably
qualified and adequately trained operating and programming staff for the
operation of the Supplier's Software;

v. rectification of errors caused by use of the Supplier's Software and Hardware
other than in accordance with the Manuals;

vi. rectification of errors caused by inadequate on site equipment maintenance;

vii. furnishing or maintenance of accessories, attachments, supplies,
consumables or associated items not supplied by the Supplier.

If the Buyer so requests, Supplier may provide any of the Services referred to
in 2a2 - g. The Supplier shall make an additional charge for providing such
Services.

3.  Access for the Supplier's Personnel

The Buyer shall, where relevant, ensure the Supplier's personnel have full and
safe access to the Supplier's Software and the Designated Hardware at all
reasonable times for the purpose of providing the Support Services and
installing New Releases.

The Buyer shall also ensure that the Supplier's personnel are provided with all
information, facilities, services and accessories reasonably required by the
Supplier to enable the Supplier to comply with its obligations under this
Agreement.

The Buyer shall, where relevant, provide on request a suitably qualified or
informed representative, agent or employee to accompany the Supplier's support
personnel and to advise the Supplier on access or on any other matter within the
Buyer's knowledge or control which will assist the Supplier in complying with
its obligations under this Agreement.

4.  Additional Services

From the end of Warranty Date, the Supplier shall, in consideration of payment
of the Annual Service Fees and otherwise at no additional cost to the Buyer
undertake the following activities:

                                       5

i. deliver to the Buyer all new software developments and functional
improvements to the Supplier's Network Software undertaken by the Supplier in
the generic development of the product;

ii. deliver new releases of the Supplier's Software in order to preserve
compatibility with the generic Supplier's Network Software.

5. Fees and Payment

The Supplier estimates an annual service fee of $ *** after the Warranty
Period for the services as described in paragraph 1.c and 4. This fee does not
include the payment for the travel and accommodation for Supplier personnel as
may be required for performance of the above services which shall be born by
Buyer. The final annual service fee will be negotiated and agreed upon between
the Supplier and the Operating Company.

The fee for the maintenance and repair of end user equipment and Base Stations
shall be in accordance with paragraphs 1.a and 1.b.

The Buyer shall pay an additional charge as will be mutually agreed between the
Supplier and the Buyer if the Buyer requests the Supplier to provide
modifications, development or any other services relating to the System not
directly embraced by the Support and Maintenance Agreement.

                                       6

***   Confidential material redacted and filed separately with the Commission.

In consideration of the mutual obligations assumed under this Annex, Buyer,
Agent and Supplier agree to this Annex, which is executed by duly authorized
representatives as of the dates below:

AGREED BY:

Telematics Wireless Ltd.                           Telematics Wireless

/s/ Avry Franco                                    /s/ Roman Sternberg
--------------------------------                   -----------------------------
By:  Avry Franco                                   By:  Roman Sternberg
Title:  V.P. & CFO                                 Title:  V.P. Marketing
Date:  29.08.04                                    Date:  29.8.04

Golden Net Communication Technology Ltd

By:  /s/ [in Chinese characters]
Title:  Chairman
Date:  [Chinese characters]

Digitrack (China) Group Co. Ltd
For and on behalf of
Digitrack (China) Group Co. Limited

------------------------------
Authorised Signature(s)
By:  /s/ [in Chinese characters]
Title:  [Chinese characters]
Date:  [Chinese characters]

                                        7

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

                                ANNEX I-2-BEIJING
                       ITURAN SYSTEM DEPLOYMENT IN BEIJING
                 STATEMENT OF WORK, PRICES AND TERMS OF PAYMENT

1. GENERAL

This document provides a description of the activities to be carried out by
Supplier, its parent company Ituran Location and Control Ltd. (hereinafter
referred to as "Ituran") and local teams of the Buyer as a part of deployment of
Ituran Location System in Beijing, including the responsibilities of each party.

To insure successful deployment and based on the experience of previous
deployments of this system in other countries, a "phased" approach is proposed.
It is based on the initial deployment of a First Phase system in chosen
location. This First Phase will serve as a basis for all future deployments,
will enable proper adaptation to specific local conditions, to train local
technical and operational personnel and to serve as a Demonstration System for
various marketing activities. After completion of First phase deployment, its
initial trial run and performing all necessary further modifications and
adaptations, further deployment can be commenced. The First Phase System will
also serve as a basis for the System Acceptance Testing, after successful
completion of which the System will be officially transferred to the
responsibility of the Operating Company in Beijing.

2.  GENERAL DESCRIPTION OF THE SYSTEM

Ituran System for locating vehicles, cargo and people is composed of the three
following sub-systems:

o Control Center.

o Base Stations.

o PAL (personal Alarm and Locator (also serves as the cargo location unit))/VLU
(Vehicle Location Unit) - transmitter/receiver installed in the vehicle, cargo
or carried by a person.

The CONTROL CENTER is usually installed in the same building with other offices
of the Operating Company. The Control Center is composed of a number of computer
systems with dedicated software, workstations for operators, and communication
systems that connect the Center with the Base Stations. The control center is
the heart of the system, and its availability is of the utmost importance. The
center's systems have a hot backup and all its infrastructures (electricity,
communication lines, air-conditioning, etc.) are also backed-up. A general
description of the Control Center is provided in Appendix G of this SOW.

The characters displayed on Operator stations shall be the official Language of
the People's Republic of China - Simplified Chinese Characters.

The Back Office capabilities, including billing are not part of the proposed
system and should be chosen by the Buyer based on the local systems and
regulations from local vendors.

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             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

The BASE STATIONS are installed in the chosen locations scattered in required
coverage area and constitute receive-only or receive and transmit sites (The
average proportion between receive-only sites and receive and transmit sites is
3:1). The Base Stations include computer-controlled receivers that receive
signals from the VLU or PAL and transfer the information to the Control Center
via the communication lines (basic technical requirements of such lines are
specified in ANNEX IV of the Comprehensive Agreement) for further processing and
display.

Some of the Base Stations are equipped with standard Paging transmitters
controlled by special controllers. The transmitters receive the information from
the control center and transmit it to the VLU or PAL in a synchronized form.
These transmissions serve for synchronization of all active VLUs/PALs and
interrogation of the chosen unit. The transmitters are timed by Atomic Clocks or
GPS receivers installed at the stations or by other means.

Some of the Base Stations contain special synchronization transmitters,
responsible for precise calibration of the stations.

All of the stations are equipped with appropriate antennas installed on masts,
lightning protection systems, air-conditioning and UPS systems.

3. CONTENT OF THE WORK

3.1 GENERAL

Initial installation of the System in the defined area will include installation
of *** receiving Base Stations and associated equipment. The deployment of full
system will be divided into 4 consecutive phases -

First phase: initial *** Base Stations and CC

Second phase: expansion of the system to *** Base Stations

Third phase: expansion of the system to *** Base Stations

Fourth phase: expansion of the system to *** Base Stations, which will basically
cover the whole city.

This Annex only includes all the activities required for the deployment and
running operation of the control center and first phase *** Base Stations of the
Ituran location system. The system deployed in a first phase will serve as a
basis for the system Acceptance Testing by The Buyer. Upon completion and
Acceptance Testing, the Parties will sign expansion agreement to expand the
First Phase system in three phases to include *** Base Stations, *** Base
Stations, and *** Base Stations.

The stations to be installed in the First Phase are:

o  ***

o  ***

                                       2

***   Confidential material redacted and filed separately with the Commission.

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

o  ***

The control center shall be run by defined number of operators and will permit
communication to *** base stations and upgradeable for communications with about
*** Base Stations (Receive and Transmit) with additional hardware.

3.2  PLANNING

Appendix B of this SOW, will be provided at PDR and will present a schedule of
the process of system deployment in a Microsoft ProjectTM format. The plan will
be further discussed between the parties.

3.3  LOCAL ENGINEERING TEAM AND ITS TRAINING

Following is the list of customer's technical personnel recommended to
participate at all the stages of system deployment. This team will work in
parallel with Telematics Wireless/Ituran team and will be trained to perform
further deployment, technical operation and maintenance of the System.

1. Engineering Manager. This person will be the technical leader of the local
team and will have overall responsibility for all the technical aspects of
system's operation and support. This should be an Electronics Engineer,
preferably with wide experience in integration and technical support for large
scale infrastructure-based communications systems (e.g., cellular or paging) and
excellent management skills.

2. Senior System Engineer. This person will be the manager of the Control Center
Engineering team. He should be software engineer with experience in operating
systems (e.g., QNX/UNIX) and real time software.

3. Control Center Engineer. This should be software engineer working under the
supervision of Senior System Engineer.

4. Base Stations Engineer. This person will be responsible for the technical
operation and support of system's Base Stations. He and his team will actively
participate in all the aspects of the deployment and integration of Base
Stations. This should be an Electronics Engineer with experience in
installation, operation and maintenance of RF, communications equipment,
antennas, modems, interfacing with telecom lines and power supply
infrastructure. Preferably, this person should have an experience in integration
and maintenance of Cellular Base Stations sites or Paging Transmission sites.

5. Base Station Technicians. Two or three technicians or junior engineers with
the experience in installation and maintenance of Cellular or Paging sites and
working under the supervision of Base Stations Engineer.

The above team will actively participate in all stages of the deployment process
under the supervision of Telematics personnel. They all (especially the
engineers) must have good knowledge of English language. They will receive an
initial training at Ituran and Telematics facilities in Israel for about two
weeks. Afterwards the team will work together with Telematics

                                       3

***   Confidential material redacted and filed separately with the Commission.

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

team in China, continuing its training in OJT form. After the deployment,
integration and initial operation of the first *** Base Station, the local team
will be able to perform further deployment of additional *** Stations (phase
two) under the strict supervision and "as needed" involvement of Telematics team
upon execution of the expansion agreement. In parallel, the local team will
prepare the required Installation and Operating instructions in Chinese, based
on their training and experience gathered during the deployment process and the
documentation provided by Supplier. Final Base Stations deployment (phase 3 and
4) will be performed by the local team under the supervision of Telematics team,
but with minimum level of their direct involvement.

3.4  EQUIPMENT PURCHASE

The list of the main items required for the deployment of *** Base Stations and
Control Center is provided in the Appendix A of this SOW. This list is subject
to changes according to the specific local requirements. Some of the standard
items mentioned in the list may be obsolete and should be replaced by the
compatible items. The updated purchase list for standard equipment will be
prepared by Supplier within fifteen (15) calendar days from the initiation of
the project. The list includes recommended quantities for purchase. Exact
quantities for maintenance purposes will be separately agreed upon between
Supplier and Buyer. Supplier shall notify the Buyer to prepare such equipment at
least fifteen (15) calendar days before it shall be used. Supplier has the
responsibility for special equipment supply. Buyer will be responsible for the
standard equipment supply and may propose alternative vendors for specific
items, equal in performance to the defined items. The standard equipment items
purchased by the Buyer must be approved by the Supplier in advance. Any changes
in purchasing must be approved by the Supplier. The purchased equipment will be
shipped to the specific locations as directed by the Supplier for further
integration and installation. The equipment for the first Control Center and
Base Stations will be integrated and tested in Israel prior to the shipment to
China. The Buyer will be responsible for releasing the equipment from customs
and transporting it to the Control Center or other sites as required.

The purchase of End User equipment will be done in accordance with End User
Equipment Purchase Agreement attached as Appendix J of this SOW.

4.  SETTING UP THE CONTROL CENTER

4.1  INFRASTRUCTURE

Supplier will prepare the specifications for the setting up the Control Center.
The Buyer will choose local contractor that shall plan and set up infrastructure
in the Control Center building, based on Telematics' specifications. The
infrastructure will permit the operation of the Control Center, including its
operation during power failures and partial malfunction of the air-conditioning.
The infrastructure set up will include the purchase and installation of a
generator, UPS, electricity boards and their integration in the building's
electricity system.

Based on Telematics' specifications, the local contractor will design and
construct the partitions required for the operation of the Control Center and
the communication room, taking into consideration all the needs of the Operating
Company to be established. A floating floor will be installed in the Control
Center and the communication room for the passage of cables. A

                                       4

***   Confidential material redacted and filed separately with the Commission.

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

platform for the operators will be constructed in the Control Center, and
contain furnishings for several operating posts. The contractor will install
electricity and communication sockets underneath the floating floor and along
the walls of the Control Center, fluorescent lighting in the ceiling with
anti-glare covers. Electricity boards and carrying equipment of communication to
the sites will be installed in the communication room.

The contractor will design, purchase and install a backed-up air-conditioning
system for the control center and the communication room.

The contractor will present all plans to Supplier and, after their approval,
will continue with the implementation stage.

The Buyer will insure that the design and implementation is performed according
to all applicable regulations. The Local contractor's work will be considered
completed upon full acceptance by Supplier.

4.2  COMPUTERS AND COMMUNICATION

The Local contractor will install the Control Center and operators' posts
equipment in accordance with specifications and guidelines of Supplier.

Integration and testing of the Control Center's equipment will be performed by
Telematics Wireless team together with the Local Engineering team. Initial
integration of the equipment will be performed in Israel with participation of
the Local Engineering team.

Appendix G provides general description of the operational Control Center.
Digital Mapping Content will be supplied by the Buyer according to the
requirements presented in Appendix H. In addition, The Buyer will supply a DTM
file (in known format) that includes the altitude data for all the required
coverage area in a definition of at least 1 minute.

5.  SETTING UP BASE STATIONS

5.1  LOCATING AND PURCHASE OF SITES

Upon completion of the Field Review by Telematics team, The Buyer will be
responsible for the location of appropriate sites for Base Stations, on the
basis of a primary deployment map and a list of sites according to priorities,
that will be prepared and provided by Supplier. This list will be based on a
special analysis using DTM information ("altitude" maps). For each potential
site The Buyer will present more than one alternative, stating the technical and
economic advantages and disadvantages of each. Among other issues, The Buyer
will check the possibility of long-term rental, access to the site during all
hours, the existence of an appropriate electricity feeding line, place for a
mast (or existence of a usable mast) appropriate grounding, and the feasibility
of obtaining a data line. Telematics and Local engineering team will verify if
there is a risk of possible existence of electro-magnetic interference from
nearby radio equipment of third parties as well as general level of
electro-magnetic noise that may have influence on system sensitivity. After one
of the alternatives has been approved by Supplier, The Buyer will handle the
rental contract and obtain from the municipal authorities all required permits
for setting up a base station.

                                       5

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

5.2  COMMUNICATION LINES

The Buyer will order for each site allocated for the receiving station the
following communication infrastructures:

o PTP data line between the site and the control center at a rate of minimum 9.6
Kbps asynchronous.

o An ordinary telephone line.

The Buyer will order for each site intended for the receiving and transmission
station the following communication infrastructures:

o Two PTP data lines between the site and the control center at a rate of
minimum 9.6 Kbps asynchronous.

o Two ordinary telephone lines.

o The possibility of working with a line at a rate of 19.2 Kbps and a
multiplexer unit for two ports will be examined at these sites.

5.3  SITE INFRASTRUCTURE

Supplier will provide the specifications and requirements for the infrastructure
installations at Base Stations sites. The Buyer via local contractor will design
the infrastructure for each site intended for Base Station. The contractor will
plan the type and height of the mast (if necessary), the location for the
building/construction (if necessary), the routing of the RF, communication,
power and grounding cables, and submit the design to the Supplier for approval.
The mast will be equipped with a lightning arrester with grounding cable, mast
illumination (if necessary), a cable ladder, and arms appropriate for the
system's antennas. The contractor will submit to Supplier for approval the type
of the construction, the air conditioning system, the method of deployment of
the communication infrastructure. The construction will contain the antennas
concentrator board for the entry of RF cables, lighting, a smoke/fire sensor, a
standard fire extinguisher and a door-opening sensor.

After approval of the plans by Supplier, the local contractor will set up the
infrastructure at the site. This will include the mast and the construction,
installation of RF cables and antennas on the arms, connecting the construction
to the electricity source, the grounding, the communication lines, and the RF.
The contractor will purchase all the needed equipment for the above activities
except antennas.

If necessary, the contractor will design and erect a fence around the station,
and make arrangements with a security company to guard the site.

                                       6

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

5.4  GEODESIC MEASUREMENTS

At each of the sites The Buyer via local contractor, specifically chosen for
this task, will perform geodesic measurements for the placement of the antennas.
The accepted measuring system is Differential GPS. The required precision is +/-
few centimeters.

5.5  INSTALLING A BASE STATION

Upon completion of the infrastructures deployment at the site, the local
contractor will transport the Base Stations racks to each site and will put it
at the construction location. The Telematics and Local engineering teams will
perform all connections between system's units and the various infrastructures.
The operation of the system at the site shall be performed in accordance with
the guidelines issued by Supplier.

5.6  INTEGRATION WITH THE CONTROL CENTER

Integration of Base Stations with the Control Center will be performed by
Telematics team together with the local engineering team. Each Base Station data
will be defined in the CC, including measured location, name, technical profile,
communication lines definitions etc. After verification of proper functioning of
communication lines using test equipment, each Base Station will be connected to
the CC over the designated line.

Location System will provide real time information regarding the communication
performance and data validity received from the site.

5.7  GENERAL REQUIREMENTS

In all installation works the local contractor will mark all cables with
markings to be agreed upon with Supplier. The cables will be marked at 3 m
intervals and adjacent to end connectors. Routing of cables serving different
purposes (communication, electricity, grounding, etc.) shall be separated.

The local contractor will meet the accepted standards for civil construction,
mechanical work, cabling work, and electrical safety. The Buyer will insure that
the design and implementation is performed according to all applicable
regulations.

6.  MAINTENANCE

During the establishment and trial run stages of the system, the local
contractor will provide maintenance to the general infrastructure of the Control
Center and the Base Stations, including masts installed by the contractor. The
contractor will keep a precise record of all spare equipment stored in the
Control Center warehouse for the purposes of maintaining the system. When an
item of equipment is replaced, the contractor will send the defective item to be
repaired.

During the deployment and trial run stages, the maintenance of all the equipment
supplied by Supplier will be performed by Supplier. The maintenance will be
performed at no additional

                                       7

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

charge during the warranty period of one year. Further maintenance of this
equipment will be performed according to the Maintenance Agreement that will be
executed between the parties.

Following response times should be insured:

o Every malfunction at the control center will be repaired within 6 hours of
notification.

o Every malfunction at a base station will be repaired within 24 hours of
notification.

Within the warranty period the Supplier shall provide a sufficient level of
Spare Units free of charge, and upon the expiry of the warranty period, the
Buyer will keep a sufficient level of Spare Units to insure the above response
times. Failed equipment will be shipped to Israel for repair and replacement.
The repair time in Israel will be not more than 30 days after receiving the
equipment.

The Buyer will keep a detailed record with regard to the date and type of
malfunctions, the method in which each was handled, and the time it took to
repair the malfunction. Copies of the reports will be submitted to Supplier.

7.  PROJECT MILESTONES

Following are the main milestones of this project and their corresponding
completion dates presented in AED (After Effective Date) terms. The detailed
project schedule will be presented at PDR and will be adapted to the status of
the Shanghai project. In any case, the milestone dates below represent latest
completion dates

o  Field Survey by Project Team
   and Preliminary Design Review                                 1 month AED
o  Local Engineering Team training in Israel                     3 months AED
o  Critical Design Review                                        3 months AED
o  Integration of CC and 10 sites in Israel                      2 months AED
o  Arrival and custom release of CC and 10 sites equipment       3 months AED
o  Phase One system integration and Acceptance Testing           6 months AED

8.  INFRASTRUCTURE ACCEPTANCE TESTS

These acceptance tests refer to the acceptance by Supplier of the infrastructure
preparations and associated works performed by local contractor with regard to
Control Center and Base Stations. Tests of Base Stations' infrastructure are
specified in Appendix D of this SOW. Tests of the Control Center infrastructure
are specified in Appendix E of this SOW. The tests will be performed by Supplier
in the presence and the assistance of the local contractor.

                                       8

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

9.  SYSTEM ACCEPTANCE TESTS

System Acceptance Testing will be performed according to the Acceptance Test
Procedures that will be agreed upon between the parties. The Acceptance Testing
will be divided into following phases:

- Base Station Acceptance Testing. These tests will demonstrate Base Stations'
equipment compliance with its specifications.

- System Acceptance Testing. This testing will be performed upon completion of
the deployment and trial run of Control Center and 10 Base Stations. This
testing will demonstrate the overall performance of the system in terms of
operating procedures, location capability, messaging capability, coverage,
interrogation rate (capacity parameter) etc. The testing will be performed using
specified number of Vehicle and Personal Location Units. Upon successful
completion of System Acceptance Testing the System will be officially
transferred to the responsibility of The Buyer. The overview of System
Acceptance concept is presented in Annex II of this Agreement.

10.  REPORTS AND DESIGN REVIEWS

During the performance of the project Supplier will submit a monthly progress
report to The Buyer. The report will include a description of the content of the
work planned for the preceding month in the original plan against actual
performance. The report will include a brief description of irregular incidents
and malfunctions in the implementation of the project. The parties will hold two
Design Reviews, PDR and CDR where the detailed status of the project with a
breakdown of activities performed in relation to planning, and a detailed
working plan for the future will be presented. The Design Reviews will be
performed at the locations designated by The Buyer.

11.  SYSTEM DOCUMENTATION

The Supplier will provide following documentation:

- Base Station Specifications
- Vehicle Location Unit Specifications
- Personal Location Unit Specifications
- Control Center Diagrams
- Control Center Infrastructure requirements specifications
- Base Station Infrastructure requirements specifications
- Control Center Operating Procedures
- Fleet Management post Operating Manual
- VLU and PAL Registration and Activation Procedure
- System Acceptance Test Procedures
- Vehicle Location Unit general installation instructions
- Monthly progress reports
- Design Reviews documentation

The above documentation will be in English.

                                       9

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

Local contractors, responsible for Control Center and Base Station
infrastructure preparation, will maintain documentation for each of the sites to
be established. The documentation of the control center will include a detailed
description of the electricity system, including all interim boards and the main
electricity board, specifying the types of cables and automatic switches. The
markings of the switches in the documentation will be identical to their
markings on electricity boards. The documentation of the system will include
diagrams of the connections of all components of the system, specifying numbers
of cables, types of cables, and names of connectors. The markings in the
diagrams will be identical to the markings on cables and connectors.

For each of the base stations the local contractor will prepare a booklet,
indicating the site on a map with a scale of 1:100000. The booklet will also
contain a descriptive diagram of the site and the mast, specifying the
disposition of the dedicated equipment, and digital photographs of the interior
and exterior of the site. The documentation will include a complete address of
the site, precise coordinates of the antennas, the name and telephone numbers of
the site owner, the name and telephone numbers of the contractor's liaison,
details of electricity feeding up to the structure's main board, and the paths
of communication and grounding lines. The local contractor will provide a
detailed description of the connections between components of the system,
including types of cables, their length, and types of connectors. The contractor
will specify the manufacturer's number of each of the items of equipment
installed at the site, including air-conditioner, electricity board, and
components of the locating system. The station's infrastructure acceptance test
report will be attached to the booklet. All of the material will be submitted on
magnetic media and in a hard copy.

                                       10

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

LIST OF APPENDIXES

APPENDIX A:  Equipment List

APPENDIX B:  Detailed Project Schedule (to be provided at PDR)

APPENDIX C:  Price and Terms of Payment

APPENDIX D:  Infrastructure Acceptance Test - Base Stations

APPENDIX E:  Infrastructure Acceptance Test - Command Center

APPENDIX F:  System Acceptance Test Principles

APPENDIX G:  Operational Control Center general Description

APPENDIX H:  Requirements from Digital Mapping Content

APPENDIX I:  Letter Of Credit Principal Terms

APPENDIX J:  End User Equipment Purchase Agreement (to be further discussed and
agreed upon)

                                       11

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

                                   APPENDIX D

INFRASTRUCTURE ACCEPTANCE TEST:  BASE STATIONS

Base station's infrastructure acceptance tests will consist of the following:

MAST

o  Testing the existence and integrity of all permits required for the
establishment and operation of the base station.

o  Approval of the mast by a Safety Engineer.

o  Results of geodesic measurements.

o  Ensuring that the grounding of the mast meets the standards.

o  Painting, illumination, climbing ladder.

o  Sealing connectors, marking and path of RF cables.

o  Antennas:  reinforcing arms, jumpers.

STRUCTURE

o  Dragging and sealing the structure.

o  Ensuring that the grounding of the structure meets the standards.

o  Acid-resistant floor coating.

o  The type and installation of the air-conditioner.

o  Antenna concentrator: sealing, marking and grounding, VSWR for adjusting the
antennas.

o  Electricity board in the structure: value and types of switches, marking.

o  Cabling in the structure: cable ladders, arrangement, marking, connectors.

o  Regularity of communication cables (data and dialing) between the station and
the control center.

o  Batteries: type of batteries, rack, connectors to power supply and
electricity board.

o  Fire extinguisher: type, working order, method of installation, expiry date.

o  Illumination, fire/smoke detector, door-opening sensor.

EQUIPMENT

o  Setting up bases in the structure.

o  Installing units in bases, connections between units, marking.

o Electrical connections, grounding, communication and RF cables to the system's
units.

o  Installation of lightning arresters, AC, RF and communication -installation,
marking.

o  Running order of all items of the system in accordance with the results of
the self-test of each unit.

o  Running order of the station against the control center.

DOCUMENTATION

o  A map of the area indicating the site.

o  A map of the site indicating the location of the mast, antennas, the
structure and cables paths.

o  A drawing of the interior of the structure indicating equipment bases,
batteries, antenna concentrators, electricity board, and entry points of
communication lines.

                                       12

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

o  A drawing of the interior of the equipment base, indicating all units and
cables.

o  Photographs of the site, integrity of the documentation, and its concordance
with the site.

                                       13

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

                                   APPENDIX E

INFRASTRUCTURE ACCEPTANCE TEST:  CONTROL CENTER

The control center's infrastructure acceptance tests will consist of the
following:

o  Tests of all equipment (computers, communication): connection to power,
markings of sockets and communication points.

o  Lighting: running order of the lighting, a sufficient quantity, no glare on
monitors.

o  Racks: cables ducting, precise and legible markings, and general quality of
work.

o  Floating floor: stability, ducting of cables underneath the floor, markings,
and general quality of work.

o  Examining the running order of modems for dialing, including connections to
the communication cables.

o  Inspection of the air-conditioning system concordance with the plans.

o  Inspection of the communication to the sites from the SMC workstations.

o  Inspection of the entire layout of the A/B switches.

o  Inspection of the UPS system support.

            o Voltage drop in the network.

            o Continuous good running order of the system.

            o Good running order of the emergency lighting.

            o  Generator activation.

            o After generator activation - activation of the air-conditioning
            system.

            o Generator drop in order to measure operation time of UPS
            batteries.

ADDITIONAL OPERATIONS:

o Listing all spare equipment in the contractor's warehouse.

                                       14

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

                                   APPENDIX F

SYSTEM ACCEPTANCE TEST PRINCIPLES

The system tests at the end of the Pilot deployment will consist of the
following:

OPERATIONAL TESTING OF THE BASE STATIONS

Operational testing of all the components of each Base Station will be performed
during the period of one week, every three hours, by means of diagnostic
programs from the Control Center.

Availability of the following equipment should be reported during the tests:

o  Atomic Clock or GPS Receivers
o  Paging Transmitters
o  Receivers in the Stations (IBSU)
o  Transmitters Controllers (SPCU)

AVAILABILITY TEST OF THE CONTROL CENTER

The test will be based on the current operation of the system and verification
of compliance with Operating Procedures.

TESTS OF COVERAGE AND LOCATION ACCURACY

The Test will include movement of defined number of PAL and VLU units in the
coverage area and the comparison between the actual location and the location
displayed in the Control Center to demonstrate required CEP accuracy. The test
will include at least 1,000 locations.

In all the locations, the following data will be registered:

o  Number of receiving stations participating in the location process.

o  The coordinates calculated by the system.

o  The coordinates displayed at the operators' workstations.

o  Actual location as reported from the field.

o  Quality of the signal reception (FOM).

o  Stability of location

In addition, the performance of message reception will be verified, including
synchronous and asynchronous messaging.

                                       15

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

TEST OF CAPACITY PARAMETERS (NUMBER OF LOCATIONS PER SECOND)

The system will be operated in the continuous interrogation manner to
demonstrate required maximum interrogation rate capability.

The above data, after its processing, will enable to evaluate the quality of the
system service.

A detailed System Acceptance Test Procedure will be prepared by the Supplier and
agreed upon with The Buyer at PDR.

                                       16

             TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

In consideration of the mutual obligations assumed under this document, Buyer,
Agent and Supplier agree to this document, which is executed by duly authorized
representatives as of the dates below:

AGREED BY:

TELEMATICS WIRELESS LTD.

BY:

TITLE:

DATE:

GOLDEN NET COMMUNICATION TECHNOLOGY LTD.

BY:

TITLE:

DATE:

DIGITRACK (CHINA) GROUP CO. LTD

BY:

TITLE:

DATE:

                                       17

                              APPENDIX I (BEIJING)

                        LETTER OF CREDIT PRINCIPLE TERMS

DOCUMENTS REQUIRED:

A  DOCUMENTS REQUIRED FOR SUPPLY OF BASE STATIONS AMOUNTING TO US$ *** :

1) 3/3 ORIGINALS PLUS 3 NON NEGOTIABLE COPIES OF CLEAN ON BOARD MARINE BILLS OF
LADING MADE OUT TO ORDER OF ISSUING BANK MARKED PAYABLE AT DESTINATION" NOTIFY:
APPLICANT, CONSIGNEE.

AND/OR

AIRWAYBILL (3RD ORIGINAL - FOR SHIPPER) CONSIGNED TO ISSUING BANK MARKED PAYABLE
AT DESTINATION" NOTIFY: APPLICANT, CONSIGNEE.

2) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

3) PACKING LIST IN 3 ORIGINALS AND 3 COPIES.

B. DOCUMENTS REQUIRED FOR SUPPLY OF END USER EQUIPMENT AMOUNTING TO US$ ***

1) 3/3 ORIGINALS PLUS 3 NON NEGOTIABLE COPIES OF CLEAN ON BOARD MARINE BILLS OF
LADING MADE OUT TO ORDER OF ISSUING BANK MARKED PAYABLE AT DESTINATION" NOTIFY:
APPLICANT, CONSIGNEE.

AND/OR

AIRWAYBILL (3RD ORIGINAL - FOR SHIPPER) CONSIGNED TO ISSUING BANK MARKED PAYABLE
AT DESTINATION" NOTIFY: APPLICANT, CONSIGNEE.

2) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

3) PACKING LIST IN 3 ORIGINALS AND 3 COPIES.

C. DOCUMENTS REQUIRED FOR PRELIMINARY DESIGN REVIEW AMOUNTING TO US$ ***

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

2) ORIGINAL CERTIFICATE JOINTLY SIGNED BY THE BENEFICIARY AND THE APPLICANT,
CERTIFYING THAT PRELIMINARY DESIGN REVIEW HAS BEEN COMPLETED AND THE REPORT HAS
BEEN PROVIDED TO THE APPLICANT.

                                       18

***   Confidential material redacted and filed separately with the Commission.

D. DOCUMENTS REQUIRED FOR CRITICAL DESIGN REVIEW AMOUNTING TO US$ ***

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

2) ORIGINAL CERTIFICATE JOINTLY SIGNED BY THE BENEFICIARY AND THE APPLICANT,
CERTIFYING THAT CRITICAL DESIGN REVIEW HAS BEEN COMPLETED AND THE REPORT HAS
BEEN PROVIDED TO THE APPLICANT.

E. DOCUMENTS REQUIRED FOR INITIAL CC SOFTWARE USE AMOUNTING TO US$ ***

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

2) ORIGINAL BENEFICIARY'S CERTIFICATE CERTIFYING THAT INITIAL LICENSE FOR SYSTEM
USE AND FOR CC SOFTWARE USE HAS BEEN SENT TO THE APPLICANT BY DHL AND THE
RELATIVE DHL SHIPMENT AIRWAY BILL IS REQUIRED.

F. DOCUMENTS REQUIRED FOR FINAL LICENSE FOR CC SOFTWARE USE AMOUNTING TO US$ ***

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY.

2) ORIGINAL BENEFICIARY'S CERTIFICATE CERTIFYING THAT FINAL LICENSE FOR SYSTEM
USE AND FOR CC SOFTWARE USE HAS BEEN SENT TO THE APPLICANT BY DHL AND THE
RELATIVE DHL SHIPMENT AIRWAY BILL IS REQUIRED.

3) ORIGINAL APPLICANT'S DECLARATION STATING THAT INSTALLATION OF *** FIRST PHASE
BASE STATIONS AND NCC IS COMPLETED.

G. DOCUMENTS REQUIRED FOR INSTALLATION AMOUNTING TO US$ ***

1) COMMERCIAL INVOICE IN 3 ORIGINALS AND 3 COPIES SIGNED BY THE BENEFICIARY

2) ORIGINAL DECLARATION JOINTLY SIGNED BY BENEFICIARY AND APPLICANT STATING THAT
INSTALLATION OF FIRST PHASE ( *** BASE STATIONS) HAS BEEN COMPLETED

PAYMENT TERMS:

1) L/C PORTION COVERING SUPPLY OF BASE STATIONS OF US$ *** REPRESENTS
*** PERCENT OF THE RELEVANT CONTRACT VALUE

                                       19

***   Confidential material redacted and filed separately with the Commission.

AND WILL BE PAID AT SIGHT AGAINST PRESENTATION OF DOCUMENTS STIPULATED IN ITEM
A.

THE OUTSTANDING *** PERCENT OF THE RELEVANT CONTRACT VALUE IS PAID AS
ADVANCE PAYMENT OUTSIDE THE L/C FRAMEWORK AND FINAL FIVE (5) PERCENT OF THE
RELEVANT CONTRACT VALUE WILL BE PAID UPON EXPIRATION OF THE WARRANTY PERIOD
OUTSIDE THIS L/C FRAMEWORK.

2) L/C PORTION COVERING SUPPLY OF END USER EQUIPMENT OF US$ *** REPRESENTS
*** PERCENT OF THE RELEVANT CONTRACT VALUE AND WILL BE PAID AT SIGHT
AGAINST PRESENTATION OF DOCUMENTS STIPULATED IN ITEM B.

THE OUTSTANDING *** PERCENT OF THE RELEVANT CONTRACT VALUE IS PAID AS ADVANCE
PAYMENT OUTSIDE THE L/C FRAMEWORK.

3) L/C PORTION COVERING DELIVERY OF INITIAL CC SOFTWARE USE LICENSES OF
US$ *** WILL BE PAID AT SIGHT AGAINST PRESENTATION OF DOCUMENTS STIPULATED IN
ITEM E.

4) L/C PORTION COVERING DELIVERY OF FINAL CC SOFTWARE USE LICENSES OF US$ ***
WILL BE PAID AT SIGHT AGAINST PRESENTATION OF DOCUMENTS STIPULATED IN ITEM F.

5) L/C PORTION COVERING DELIVERY OF PRELIMINARY DESIGN REVIEW IS US$ *** AND
WILL BE PAID AT SIGHT AGAINST PRESENTATION OF DOCUMENTS STIPULATED IN ITEM C.

6) L/C PORTION COVERING DELIVERY OF CRITICAL DESIGN REVIEW IS US$ *** AND WILL
BE PAID AT SIGHT AGAINST PRESENTATION OF DOCUMENTS STIPULATED IN ITEM D.

7) L/C PORTION COVERING INSTALLATION IS US$ *** . THIS SUM WILL BE PAID AT
SIGHT AGAINST PRESENTATION OF DOCUMENTS STIPULATED IN ITEM G.1) AND G.2 ).

                                       20

***   Confidential material redacted and filed separately with the Commission.

                                   APPENDIX C

ITURAN SYSTEM DEPLOYMENT IN BEIJING - FIRST PHASE - PRICES AND TERMS OF PAYMENT

This document addresses the following:

o  Deployment cost
o  End-user equipment cost
o  Licensing fees

All the prices presented below are FOB Israel (for relevant items). The prices
are based on the assumption of the commencement of Beijing deployment project
after the commencement of Shanghai project.

1. ITURAN SYSTEM DEPLOYMENT COST.

a. System deployment cost is divided as follows:

1. Equipment purchase:

     a. Special equipment purchase (manufactured by Telematics)
     b. Standard equipment purchase - Base Stations
     c. Standard equipment purchase - Network Control Center
     d. NCC software licensing
     e. Standard test equipment for engineering team

2. Engineering and consulting services provided by Telematics

Costs described in this document do not include the cost of local services
provided by local companies and contractors as described in the Statement Of
Work document.

The number of base stations needed for the deployment depends on the size of the
required coverage area. Based on our experience, the average density of the
installation of receiving base stations in urban area is around *** square
kilometers per base station.

First Phase of the deployment in Beijing include *** receiving stations *** of
which will transmission stations and *** of which will contain synchronization
stations. The prices below are presented for single unit (single Base Station)
and the Total is calculated for *** Receiving and *** Transmitting Stations, ***
of which include the Calibration Transmitter Unit. Different quantities will
cause corresponding change in total pricing of the project.

                                       1

***   Confidential material redacted and filed separately with the Commission.

<TABLE>

b. Prices    (US$)                                                    Unit             Total
              1. Equipment                                            ----             -----
                  a. (a.1a)  Receiving station  ***                   $ ***             $ ***
                             - item 1 & 2 of the Part list:
                             First phase *** stations

                  b. (a.1.b) Peripheral equipment
                             for Rec.BS ***
                             incl. *** antennas each                     *                *

                  C. (a.1.b) Paging Transmitter ***                      *                *

                  d. (a.1.a) Calibration Transmission
                             Unit *** - Item 5 of
                             the Part list                             $ ***           $ ***

                  e. (a.1.b) Peripheral equipment for
                             transmission ***                            *                *

                  f. (a.1.c) Computers and telecom.
                             equipment for CC                            *                *

                  g. (a.1.e) Standard test equipment                     *                *

               o    *Note1: This equipment will be purchased by the buyer.

               o    **Note2: The price of $ *** will be the receiving station
                    unit price also for consecutive Base Stations.

               o    Note 3: The Buyer recognizes that there is certain cost of
                    each comprehensive CCP software package. The price will be
                    further discussed and agreed upon.

               2. Licensing

                  (a.1.d) NCC software licensing                        ***             ***

               3. Engineering, management, supervision,
               training and consulting services by Telematics team
               (incl. salaries, accommodation, travel) in
               accordance with SOW, during the deployment
               of the first phase system in Beijing ( *** base           ***          $ ***
               stations)

               Notes:

                  Local services provided by local companies and
                  contractors according to the SOW document are
                  not part of this proposal and include (but not
                  limited to):
</TABLE>

                                       2

***   Confidential material redacted and filed separately with the Commission.

<TABLE>

                   a. Site survey and rental agreement
                   b. On-site infrastructure
                   c. Geodetic measurements
                   d. NCC building reconstruction and modifications

2. END-USER EQUIPMENT COST
     Prices:

               1.   Standard vehicle kit;

                                   a.  Vehicle Location Unit type TULIP                $ ***
                                   + *** installments of $ *** per year for *** years
                                   b.  TULIP installation kit (Note)                    $ ***
               2.   Optional high-end Vehicle Location Unit and
                    Alarm kit (*):

                                   a.  TULIP                                           $ ***
                                   + *** installments of $ *** per year for *** years
                                   b.  Vehicle Alarm Unit type MAPLE                    $ ***
                                   c.  MAPLE-TULIP installation kit (Note)              $ ***
                                   (*) MAPLE provides additional level of
                                   protection, if required.
               3.   Personal Alarm and Locator - PAL                                   $ ***

                                   + *** installments of $ *** per year for *** years
Notes:

               Installation kits will be produced or purchased locally
               (excl. antennas). The prices are for reference only.

3.  TERMS OF PAYMENT

o  Deployment Phase

      a. Down-Payment ( *** % of the total special equipment
         cost 1.b.1) paid upon the signature on this
         Agreement
         (Effective Date - ED)                                                         - $ ***
      b. *** % of CC software licensing (1.5 months AED)                               -  $ ***
      c. Preliminary Design Review - *** % of 1.b.3
         above (1.5 months AED)                                                        -  $ ***
      d. Critical Design Review - *** % of 1.b.3
         (5 months AED)                                                                -  $ ***
      e. Shipment of CC and *** BS equipment
         (6.5 months AED)
         *** % of $ ***                                                                - $ ***
         *** % of $ ***                                                                -  $ ***
                                                                                         -----
                                                                                       - $ ***
</TABLE>
                                       3

***   Confidential material redacted and filed separately with the Commission.

<TABLE>

      f. Installation of CC and *** BS in China and ATP
         10 months AED) -
         *** % of l.b.3                                                                - $ ***
         *** % of CC software licensing                                                - $ ***
                                                                                       -------
                                                                                         $ ***

      g. End of the warranty period (22 months AED)
         *** % of the total equipment cost of 1.b.1                                    - $ ***
                                   ------------------------------------------------------------

         TOTAL                                                                          $ ***
</TABLE>

Letter of Credit issued by First Class International Bank for the total sum of
the Deployment Cost less the Down-Payment and less the "end of warranty period"
sum will be provided no later than thirty (30) days AED. Principle terms of this
LOC are stipulated in Appendix I of this Annex. The payment of the "end of
warranty period" will be done thru separate L/C opened 11 months before the
expiration of the warranty period.

<TABLE>

      o     End User equipment
            *** % down payment and L/C for the remaining *** %
            with the order.
            *** % payment - upon delivery.

            TULIPs:

            Total price                                                                -   $ ***
            *** % of total cost                                                        - $ ***
            Delivery of *** units                                                      - $ ***
            (before the Phase One system acceptance testing)
            Additional $ *** per year will be paid at the end of each
            year during five years (total of $ *** ).
</TABLE>

                                       4

***   Confidential material redacted and filed separately with the Commission.

TELEMATICS WIRELESS AND ITURAN PROPRIETARY INFORMATION

IN CONSIDERATION OF THE MUTUAL OBLIGATIONS ASSUMED UNDER THIS DOCUMENT, BUYER,
AGENT AND SUPPLIER AGREE TO THIS DOCUMENT, WHICH IS EXECUTED BY DULY AUTHORIZED
REPRESENTATIVES AS OF THE DATES BELOW.

AGREED BY:

TELEMATICS WIRELESS LTD.

/s/ Roman Sternberg

BY:  Roman Sternberg
TITLE:  VP Marketing & Business Development

DATE:  28 March, 2005

GOLDEN NET COMMUNICATIONS TECHNOLOGY INC.

BY:  /S/ [IN CHINESE CHARACTERS]

TITLE: [IN CHINESE CHARACTERS]

DATES: [IN CHINESE CHARACTERS]

DIGITRACK (CHINA) GROUP CO. LTD.

FOR AND ON BEHALF OF
DIGITRACK (CHINA) GROUP CO. LIMITED

/S/ [IN CHINESE CHARACTERS]
AUTHORIZED SIGNATURE

                                       5

Amendment I of the Agreement between Golden Net, Digitrack and Telematics
Wireless (illegible) for the supply of Ituran Radio Location System in Greater
China.

The Parties agree that Article II to VI of the above agreement dated August 29,
2004 are applicable in its entirety for the Beijing project as well and wherever
"Shanghai" is mentioned in these Annexes, it should be related as "Shanghai or
Beijing, as applicable."

AGREED BY:

TELEMATICS WIRELESS LTD.

/s/ Roman Sternberg
By:  ROMAN STERNBERG

Title:  VP MARKETING & BUSINESS DEVELOPMENT
Date:  MARCH 28, 2005

GOLDEN NET COMMUNICATION TECHNOLOGY LTD.

/s/  [in Chinese characters]
By: [in Chinese characters]
Title: [in Chinese characters]
Date: [in Chinese characters]

DIGITTRACK (CHINA) GROUP CO. LTD.

For and on behalf of
DIGITRACK (CHINA) GROUP CO. LIMITED

Authorized Signature

/s/ [in Chinese characters]
By: [in Chinese characters]
Title: [in Chinese characters]
Date: [in Chinese characters]

                                       6

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