Document:

EXHIBIT 10.18

                            STOCK PURCHASE AGREEMENT

                                     among:

                        SAMARITAN PHARMACEUTICALS, INC.,
                              a Nevada corporation;

                        METASTATIN PHARMACEUTICALS, INC.,
                             a Maryland corporation;

                                       and

              THE SHAREHOLDERS OF METASTATIN PHARMACEUTICALS, INC.

                          Dated as of November 6, 2006

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                                TABLE OF CONTENTS

1.       SALE AND PURCHASE OF SHARES; RELATED TRANSACTIONS...................1
         1.1      Sale and Purchase of Shares................................1
         1.2      Purchase Price.............................................1
         1.3      Closing....................................................2
         1.4      Additional Provisions......................................2

2.       REPRESENTATIONS AND WARRANTIES OF METASTATIN AND THE
         SELLING SHAREHOLDERS................................................4
         2.1      Due Organization; No Subsidiaries; Etc.....................4
         2.2      Articles of Incorporation and Bylaws; Records..............5
         2.3      Capitalization, Etc........................................5
         2.4      Financial Statements.......................................6
         2.5      Absence of Changes.........................................7
         2.6      Title to Assets............................................8
         2.7      Proprietary Assets.........................................8
         2.8      Contracts..................................................8
         2.9      Liabilities; Major Suppliers...............................8
         2.10     Compliance With Legal Requirements.........................9
         2.11     Governmental Authorizations................................9
         2.12     Benefit Plans; ERISA.......................................9
         2.13     Environmental Matters......................................9
         2.14     Possession of Franchies, Licenses, Etc.....................9
         2.15     Certain Payments, Etc......................................9
         2.16     Proceedings; Orders.......................................10
         2.17     Authority; Binding Nature of Agreements...................10
         2.18     Non-Contravention Consents................................10
         2.19     Brokers...................................................11
         2.20     Full Disclosure...........................................11
         2.21     Representations and Warranties of All Selling
                  Shareholders..............................................11

3.       REPRESENTATIONS AND WARRANTIES OF PURCHASER........................11
         3.1      Acquisition of Shares.....................................11
         3.2      Organization and Qualification; Absence of
                  Subsidiaries..............................................12
         3.3      Shares; Capitalization....................................12
         3.4      Liabilities and Obligations...............................12
         3.5      Articles of Incorporation and By-Laws.....................13
         3.6      Authority Relative to This Agreement......................13
         3.7      Compliance With Law.......................................13
         3.8      Full Disclosure...........................................13
         3.9      Brokers...................................................13

4.       PRE-CLOSING COVENANTS OF METASTATIN AND THE SELLING
         SHAREHOLDERS.......................................................14
         4.1      Access and Investigation..................................14
         4.2      Confidentiality...........................................14

5.       PRE-CLOSING COVENANT OF PURCHASER..................................14
         5.1      Access and Investigation..................................14
         5.2      Best Efforts..............................................15
         5.3      Confidentiality...........................................15

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6.       CONDITIONS PRECEDENT TO PURCHASER'S OBLIGATION TO CLOSE............15
         6.1      Satisfactory Completion of Pre-Acquisition Review.........15
         6.2      Accuracy of Representations...............................15
         6.3      Performance of Obligations................................15
         6.4      Approval of Purchaser's Board of Directors; Consents......16
         6.5      No Adverse Change.........................................16
         6.6      Additional Documents......................................16
         6.7      No Proceedings............................................16
         6.8      No Claim Regarding Stock Ownership or Sale Proceeds.......16
         6.9      No Prohibition............................................17
         6.10     Modification of the DBED Debt.............................17
         6.11     Modification of the GW Debt...............................17

7.       CONDITIONS PRECEDENT TO SELLING SHAREHOLDER'S OBLIGATION
         TO CLOSE...........................................................17
         7.1      Satisfactory Completion of Pre-Acquisition Review.........17
         7.2      Accuracy of Representations...............................17
         7.3      Purchaser's Performance...................................18
         7.4      No Injunction.............................................18

8.       TERMINATION........................................................18
         8.1      Termination Events........................................18
         8.2      Termination Procedures....................................18
         8.3      Effect of Termination.....................................19

9.       INDEMNIFICATION, ETC...............................................19
         9.1      Survival of Representations and Covenants.................19
         9.2      Indemnification by Select Shareholders....................19
         9.3      No Contribution...........................................20

10.      MISCELLANEOUS PROVISIONS...........................................20
         10.1     Further Assurances........................................20
         10.2     Attorneys' Fees...........................................20
         10.3     Notices...................................................20
         10.4     Time of the Essence.......................................21
         10.5     Headings..................................................21
         10.6     Counterparts..............................................21
         10.7     Governing Law; Venue......................................21
         10.8     Successors and Assigns....................................21
         10.9     Waiver....................................................21
         10.10    Amendments................................................22
         10.11    Severability..............................................22
         10.12    Entire Agreement..........................................22

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                            STOCK PURCHASE AGREEMENT

         THIS STOCK PURCHASE AGREEMENT (this "Agreement") is made and entered
into as of November 6, 2006, by and among SAMARITAN PHARMACEUTICALS, INC., a
Nevada corporation (the "Purchaser"), METASTATIN PHARMACEUTICALS, INC., a
Maryland corporation ("Metastatin"), and the shareholders of Metastatin as set
forth on Schedule A attached hereto individually, a "Selling Shareholder" and
collectively, (the "Selling Shareholders"). Certain capitalized terms used in
this Agreement are defined on Exhibit A.

                                    RECITALS

         A.       The Purchaser desires to purchase in the aggregate a minimum
of ninety percent (90%) of the issued and outstanding capital stock of
Metastatin.

         B.       The Selling Shareholders own the number of shares (the
"Shares") of the common stock of Metastatin set forth on Schedule A , which
constitute at least and not less then ninty percent (90%) of the issued and
outstanding capital stock of Metastatin on a filly diluted basis.

         C.       The Selling Shareholders wish to sell all of the Shares to the
Purchaser on the terms set forth in this Agreement and the Purchaser desires to
purchase the Shares. The parties intend that this transaction qualify as a
tax-free reorganization in accordance with the provisions of Section 354 and
368(a)(1)(B) of the Internal Revenue Code of 1986, as amended.

                                    AGREEMENT

         The Purchaser, Metastatin and the Selling Shareholders, intending to be
legally bound, hereby agree as follows:

1.       SALE AND PURCHASE OF SHARES; RELATED TRANSACTIONS

         1.1      Sale and Purchase of Shares.

         At the Closing, the Selling Shareholders shall sell, assign, transfer
and deliver the Shares to the Purchaser, and the Purchaser shall purchase the
Shares from the Selling Shareholders, on the terms and subject to the conditions
set forth in this Agreement.

         1.2      Purchase Price.

         The aggregate purchase price payable by the Purchaser for the Shares
(the "Purchase Price") shall be five hundred thousand (500,000) restricted
shares of common stock, par value $0.001 of the Purchaser (the "Purchaser Common
Stock").

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         1.3 Closing.

         (a) The closing of the sale of the Shares to the Purchaser (the
"Closing") shall take place at a place and time no later than November 20, 2006,
as the parties agree. The time and date as of which the Closing actually takes
place is herein referred to as the "Closing Date."

         (b) At the Closing:

               (i) the Selling Shareholders shall deliver to the Purchaser the
stock certificates representing the Shares, duly endorsed (or accompanied by
duly executed stock powers) and the Purchaser shall pay the Purchase Price to
the Selling Shareholders as contemplated by Section 1.2;

               (ii) each Selling Shareholder shall execute and deliver to the
Purchaser a General Release in the form of Exhibit B attached hereto;

               (iii) Metastin shall execute and deliver to the Samaritan in
a certificate (the "Closing Certificate") setting forth the Metastatin's
representations and warranties that (A) each of the representations and
warranties made by Metastatin in this Agreement was accurate in all respects as
of the date of this Agreement (B) except as expressly set forth in the Closing
Certificate, each of the representations and warranties made by the Metastatin
in this Agreement is accurate in all respects as of the Closing Date as if made
on the Closing Date, (C) each of the covenants and obligations that Metastatin
is required to have complied with or performed pursuant to this Agreement at or
prior to the Closing has been duly complied with and performed in all respects,
and (D) except as expressly set forth in the Closing Certificate, each of the
conditions set forth in Sections 6.4(b), 6.5, 6.7 and 6.8 has been satisfied in
all respects; and

               (iv) each officer and/or director of Metastatin shall resign from
his positions as a director and officer of Metastatin, as applicable.

     1.4 Additional Provisions.

     (a) The American Stock Exchange (the "AMEX") shall have approved the shares
of the Purchaser's Common Stock to be issued to the Selling Shareholders as the
Purchase Price to be listed on the AMEX.

     (b) The Purchaser hereby agrees to grant Donald M. McGuire ("McGuire")
"observer" status for all of the Purchaser's Board of Director meetings for a
period of two (2) years following the Closing Date. The Purchaser shall provide
McGuire with the same notice of all of the Purchaser's Board of Director
meetings as provided to the members of Purchaser's Board of Directors for the
period set forth in this Section 1.4(b).

     (c) Subject to the terms and conditions of this Agreement, the Purchaser
shall notify the holder of Registrable Securities (as defined below) in writing
at least ten (10) business days prior to the filing of any registration
statement under the Securities Act of 1933, as amended (the "1933 Act"), for
purposes of a public offering of securities of the Purchaser (including, but not
limited to, registration statements relating to secondary offerings of
securities of the Purchaser, but excluding any registration statement relating
to any employee benefit plan or with respect to any corporate reorganization or
other transaction under Rule 145 of the 1933 Act) and will afford each such
holder an opportunity to include in such registration statement all or part of
such Registrable Securities held by such holder. Each holder of Registrable
Securities desiring to include in any such registration statement, all or part
of the Registrable Securities held by it shall, within ten (10) days after the
above-described notice from the Purchaser, so notify the Purchaser in writing.
Such notice shall state the intended method of disposition of the Registrable
Securities held by such holder. If a holder decides not to include all of its
Registrable Securities in the registration statement thereafter filed by the
Purchaser, such holder shall nevertheless continue to have the right to include
any Registrable Securities in any subsequent registration statement or
registration statements as may be filed by the Purchaser with respect to
offerings of its securities, all upon the terms and conditions set forth herein.
"Registrable Securities" means the shares of the Purchaser's common stock
issuable to the Selling Shareholders as the Purchase Price pursuant to this
Agreement.

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     (d) From and after the date hereof, the parties hereto shall cause their
representatives to hold in confidence this Agreement (including the Schedules
hereto), all matters relating hereto and all data and information obtained with
respect to the other parties or their business, except such data or information
as is published or is a matter of public record, or as compelled by legal
process, including, without limitation, under the federal securities laws and
regulations. In the event this Agreement is terminated pursuant to Section 8
hereof, each party shall promptly return to the other(s) any statements,
documents, schedules, exhibits or other written information obtained from them
in connection with this Agreement, and shall not retain any copies thereof.

     (e) Upon the termination of this Agreement, Metastatin and the Selling
Shareholders shall return to the Purchaser, and the Purchaser shall return to
Metastatin, any such property or documents which are in their possession,
custody or control, but each party's obligation of confidentiality shall survive
such termination and unless any confidential and secret information which is a
competitive asset of the Purchaser or Metastatin ("Confidential Information")
shall have become, through no fault of the Purchaser with respect to Metastatin
and through no fault of Metastatin and the Selling Shareholders with respect to
the Purchaser, generally known to the trade. The obligations of each party under
this subsection are in addition to, and not in limitation or preemption of, all
other obligations of confidentiality which each party may have under general
legal or equitable principles.

     (f) From and after the date hereof until the earlier of the Closing Date or
the termination of this Agreement, Metastatin and the Selling Shareholders will
not, directly or indirectly, and will instruct their respective representatives
not to, directly or indirectly, solicit or initiate (including by way of
furnishing nonpublic information), or take any other action knowingly to
facilitate, any inquiries or the making of any proposal or offer that
constitutes: (a) a merger, consolidation, share exchange, business combination
or other similar transaction; (b) a sale, lease, exchange, transfer or other
disposition of any significant assets of Metastatin, other than in the ordinary
course of business or sales of obsolete materials; or (c) an acquisition of any
Metastatin capital stock (collectively, a "Competing Transaction"), or enter
into or maintain or continue discussions or negotiate with any person or entity
in furtherance of such inquiries or to obtain a Competing Transaction, or agree
to or endorse any Competing Transaction, or authorize or permit any of their
representatives to take any such action. Metastatin and the Selling Shareholders
immediately shall cease and cause to be terminated all existing discussions or
negotiations with any parties conducted with respect to a Competing Transaction.

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     (g) It is expressly agreed by the Purchaser, Metastatin and the Selling
Shareholders that the provisions in this Section 1.4 are reasonable for purposes
of preserving for the Purchaser and Metastatin their respective businesses,
goodwill and Confidential Information. It is also agreed that if any provision
is found by a court having jurisdiction to be unreasonable because of scope,
area or time, then that provision shall be amended to correspond in scope, area
and time to that considered reasonable by a court and as amended shall be
enforced and the remaining provisions shall remain effective. In the event any
breach, actual or threatened, of these provisions by any party hereto, the
parties recognize and acknowledge that a remedy at law will be inadequate and
the other parties may suffer irreparable injury. Each party hereto consents to
injunctive and other appropriate equitable relief without the posting of a bond
upon the institution of proceedings therefor by the other parties in order to
protect the other parties' rights. Such relief shall be in addition to any other
relief to which each party may be entitled at law, in equity, or under any other
agreement. The provisions of this Section 1.4 (including the subsections) shall
survive the termination of this Agreement.

     (h) The issuance of the Shares to the Selling Shareholders hereunder shall
not be registered under the 1933 Act, by reason of the exemption provided by
Section 4(2) thereof, and such Shares may not be further transferred unless such
transfer is registered under applicable securities laws or, in the opinion of
the Purchaser's counsel, such transfer complies with an exemption from such
registration. All certificates evidencing the Shares to be issued to the Selling
Shareholders shall be legended to reflect the foregoing restriction.

     (i) The parties hereto shall deliver any and all other instruments or
documents required to be delivered pursuant to, or necessary or proper in order
to give effect to, the provisions of this Agreement, including, without
limitation, all necessary stock powers and such other instruments of transfer as
may be necessary or desirable to transfer ownership of the Shares to the
Purchaser and to consummate the transactions contemplated by this Agreement.

2. REPRESENTATIONS AND WARRANTIES OF METASTATIN AND THE SELLING SHAREHOLDERS

     With the exception of Section 2.21, Metastatin represents and warrants, to
and for the benefit of the Indemnitees, as follows:

     2.1 Due Organization; No Subsidiaries; Etc.

          (a) Metastatin is a corporation duly organized, validly existing and
in good standing under the laws of the State of Maryland and has all necessary
power and authority:

               (i) to conduct its business in the manner in which its business
is currently being conducted and in the manner in which its business is proposed
to be conducted;

               (ii) to own and use its assets in the manner in which its assets
are currently owned and used and in the manner in which its assets are proposed
to be owned and used; and

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               (iii) to perform its material obligations under all Metastatin
Contracts.

     (b) Metastatin has never conducted any business under or otherwise used,
for any purpose or in any jurisdiction, any fictitious name, assumed name, trade
name or other name, other than the name "Metastatin."

     (c) Metastatin is not, and has never been, required to be qualified,
authorized, registered or licensed to do business as a foreign corporation in
any jurisdiction other than the jurisdictions identified in Part 2.1 of the
Disclosure Schedule, where applicable. Metastatin is in good standing as a
foreign corporation in each of the jurisdictions identified in Part 2.1 of the
Disclosure Schedule.

     (d) Part 2.1 of the Disclosure Schedule accurately sets forth (i) the names
of the members of Metastatin's board of directors, (ii) the names of the members
of each committee of Metastatin's board of directors, and (iii) the names and
titles of Metastatin's officers.

     (e) Metastatin has no subsidiaries, and Metastatin has never owned,
beneficially or otherwise, any shares or other securities of, or any direct or
indirect interest of any nature in, any Entity subsidiaries identified in Part
2.1 of the Disclosure Schedule.

     2.2 Articles of Incorporation and Bylaws; Records.

     (a) Metastatin will deliver, prior to closing to the Purchaser, accurate
and complete copies of:

          (i) Metastatin's Articles of Incorporation and bylaws, including all
amendments thereto;

          (ii) stock records of Metastatin; and

          (iii) the minutes and other records of the meetings and other
proceedings (including any actions taken by written consent or otherwise without
a meeting) of the shareholders of Metastatin, the board of directors of
Metastatin and all committees of the board of directors of Metastatin.

     (b) The books of account, stock records, minute books and other records of
Metastatin are accurate, up-to date and complete, and have been maintained in
accordance with sound and prudent business practices. All of the records of
Metastatin are in the actual possession and direct control of Metastatin.

     2.3 Capitalization, Etc.

     (a) The authorized capital stock of Metastatin consists of 20,000,000
shares of common stock having a par value of $0.0001 per share, of which
12,894,301 shares have been issued and are outstanding;

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     (b) All of the Shares (i) have been duly authorized and validly issued,
(ii) are fully paid and non-assessable, and (iii) to Metastatin's Knowledge,
have been issued in full compliance with all applicable securities laws and
other applicable Legal Requirements.

     (c) Except as set forth in Part 2.3(c) of the Disclosure Schedule, there is
no:

          (i) outstanding subscription, option, call, warrant or right (whether
or not currently exercisable) to acquire any shares of the capital stock or
other securities of Metastatin;

          (ii) outstanding security, instrument or obligation that is or may
become convertible into or exchangeable for any shares of the capital stock or
other securities of Metastatin;

          (iii) other than this Agreement, Contract under which Metastatin is or
may become obligated to sell or otherwise issue any shares of its capital stock
or any other securities; or

          (iv) other than this Agreement, condition or circumstance that may
directly or indirectly give rise to or provide a basis for the assertion of a
claim by any Person to the effect that such Person is entitled to acquire or
receive any shares of capital stock or other securities of Metastatin.

          2.4 Financial Statements.

     (a) Metastatin has delivered, or will deliver to the Purchaser prior to
closing, the following balance sheets and supporting documents (collectively,
the "Metastatin Financial Statements"):

          (i) The cash basis balance sheet of Metastatin as of July 31, 2006;

          (ii) the cash basis balance sheet of Metastatin as of December 31,
2005 (the "Unaudited Interim Financial Statements");

     (b) To Metastatin's Knowledge, all of the Metastatin Financial Statements
are accurate and complete in all material respects, and the dollar amount of
each line item included in the Metastatin Financial Statements is accurate in
all material respects. The financial statements and notes referred to in
Sections 2.4(a)(i) and 2.4(a)(ii) present fairly the financial position of
Metastatin as of the respective dates thereof.

     (c) Metastatin has timely filed all reports, schedules, forms, statements
and other documents required to be filed by it with the SEC pursuant to the
reporting requirements of the 1934 Act (all of the foregoing filed prior to the
date hereof and all exhibits included therein and financial statements and
schedules thereto and documents incorporated by reference therein being
hereinafter referred to as the "SEC Documents"). As of their respective dates
(except as they have been correctly amended), the SEC Documents complied in all
material respects with the requirements of the 1934 Act and the rules and
regulations of the SEC promulgated thereunder applicable to the SEC Documents,
and none of the SEC Documents, at the time they were filed with the SEC (except
as they may have been properly amended), contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. As of their respective
dates (except as they have been properly amended), the financial statements of
Metastatin included in the SEC Documents complied as to form in all material

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respects with applicable accounting requirements and the published rules and
regulations of the SEC with respect thereto. Such financial statements have been
prepared in accordance with generally accepted accounting principles,
consistently applied, during the periods involved (except (i) as may be
otherwise indicated in such financial statements or the notes thereto or (ii) in
the case of unaudited interim statements, to the extent they may exclude
footnotes or may be condensed or summary statements) and fairly present in all
material respects the financial position of Metastatin as of the dates thereof
and the results of its operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit
adjustments). Metastatin has received no notices or correspondence from the SEC
and the SEC has not commenced any enforcement proceedings against Metastatin or
any of its subsidiaries.

     (d) Metastatin and each of its Subsidiaries has made or filed all federal
and state income and all other material tax returns, reports and declarations
required by any jurisdiction to which it is subject (unless and only to the
extent that Metastatin and each of its Subsidiaries has set aside on its books
provisions reasonably adequate for the payment of all unpaid and unreported
taxes) and has paid all taxes and other governmental assessments and charges
that are material in amount, shown or determined to be due on such returns,
reports and declarations, except those being contested in good faith and has set
aside on its books provision reasonably adequate for the payment of all taxes
for periods subsequent to the periods to which such returns, reports or
declarations apply. There are no unpaid taxes in any material amount claimed to
be due by the taxing authority of any jurisdiction, and the officers of
Metastatin know of no basis for any such claim.

     2.5 Absence of Changes.

     Except as set forth in Part 2.5 of the Disclosure Schedule, since December
31, 2005:

     (a) there has not been any material adverse change in Metastatin's
business, condition, assets, liabilities, operations, financial performance, net
income or prospects (or in any aspect or portion thereof), and no event has
occurred that might have a material adverse effect on Metastatin's business,
condition, assets, liabilities, operations, financial performance, net income or
prospects (or on any aspect or portion thereof);

     (b) Metastatin has not changed any of its methods of accounting or
accounting practices in any respect;

     (c) Metastatin has not entered into any transaction or taken any other
action outside the Ordinary Course of Business; and

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     2.6 Title to Assets.

     Except as set forth in Part 2.6 of the Disclosure Schedule, Metastatin
owns, and has good, valid and marketable title to, all assets used in its
business.

     2.7 Proprietary Assets.

     (a) Except as set forth in Part 2.7 of the Disclosure Schedule, there is no
Proprietary Asset that is owned by or licensed to Metastatin or that is
otherwise used or useful in connection with Metastatin's business.

     (b) Metastatin has taken all measures and precautions necessary to protect
the confidentiality and value of each Proprietary Asset identified or required
to be identified in Part 2.7 of the Disclosure Schedule.

     (c) To the best Knowledge of Metastatin, Metastatin is not infringing, and
has not at any time infringed or received any notice or other communication (in
writing or otherwise) of any actual, alleged, possible or potential infringement
of, any Proprietary Asset owned or used by any other Person. To the best
knowledge of Metastatin, no other Person is infringing, and no Proprietary Asset
owned or used by any other Person infringes or conflicts with, any Proprietary
Asset owned or used by Metastatin.

     2.8 Contracts.

     (a) Part 2.8 of the Disclosure Schedule identifies and provides an accurate
and complete description of each Metastatin Contract. Metastatin has delivered
to the Purchaser accurate and complete copies of all Metastatin Contracts
identified in Part 2.8 of the Disclosure Schedule, including all amendments
thereto.

     (b) Each Metastatin Contract is valid and in full force and effect, and is
enforceable by Metastatin in accordance with its terms.

     2.9 Liabilities.

     Except as set forth in Part 2.9 of the Disclosure Schedule, Metastatin has
no material Liabilities, except for:

          (i) liabilities identified as such in the "liabilities" column of the
Unaudited Interim Financial Statements;

          (ii) accounts payable (of the type required to be reflected as current
liabilities in the "liabilities" column of a balance sheet prepared in
accordance with GAAP) incurred by Metastatin in the ordinary course of business
since November 14, 2006.

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     2.10 Compliance With Legal Requirements.

     Except as set forth in Part 2.10 of the Disclosure Schedule, Metastatin is
in material compliance with each Legal Requirement that is applicable to it or
to the conduct of its business or the ownership or use of any of its assets.

     2.11 Governmental Authorizations

     Part 2.11 of the Disclosure Schedule identifies:

          (i) each Governmental Authorization that is held by Metastatin; and

          (ii) each other Governmental Authorization that, to, the Knowledge of
Metastatin, is held by any of Metastatin's employees and relates to or is useful
in connection with Metastatin's business.

     Metastatin has delivered to the Purchaser accurate and complete copies of
all of the Governmental Authorizations identified in Part 2.11 of the Disclosure
Schedule, including all renewals thereof and all amendments thereto. Each
Governmental Authorization identified or required to be identified in Part 2.11
of the Disclosure Schedule is valid and in full force and effect.

     2.12 Benefit Plans; ERISA.

     Metastatin has never established, adopted, maintained, sponsored,
contributed to, participated in or incurred any Liability with respect to any
Employee Benefit Plan.

     2.13 Environmental Matters.

     Metastatin is not liable or potentially liable for any response cost or
natural resource damages under Section 107(a) of CERCLA, or under any other
so-called "superfund" or "superlien" law or similar Legal Requirement, at or
with respect to any site.

     2.14 Possession of Franchies, Licenses, Etc. The Company: (a) possess all
material franchises, certificates, licenses, permits and other authorizations
(collectively, the "Licenses") from governmental authorities, political
subdivisions or regulatory authorities that are necessary for the ownership,
maintenance and operation of its business in the manner presently conducted; (b)
are not in violation of any provisions thereof; and (c) have maintained and
amended, as necessary, all Licenses and duly completed all filings and
notifications in connection therewith.

     2.15 Certain Payments, Etc.

     Neither Metastatin nor any officer, employee, agent or other Person
associated with or acting for or on behalf of Metastatin, has at any time on
behalf of Metastatin, directly or indirectly:

     (a) used any corporate funds (i) to make any unlawful political
contribution or gift or for any other unlawful purpose relating to any political
activity, (ii) to make any unlawful payment to any governmental official or
employee, or (iii) to establish or maintain any unlawful or unrecorded fund or
account of any nature;

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     (b) made any false or fictitious entry, or failed to make any entry that
should have been made, in any of the books of account or other records of
Metastatin;

     (c) made any payoff, influence payment, bribe, rebate, kickback or unlawful
payment to any Person;

     (d) performed any favor or given any gift which was not deductible for
federal income tax purposes;

     (e) made any payment (whether or not lawful) to any Person, or provided
(whether lawfully or unlawfully) any favor or anything of value (whether in the
form of property or services, or in any other form) to any Person, for the
purpose of obtaining or paying for (i) favorable treatment in securing business,
or (ii) any other special concession; or

     (f) agreed, committed, offered or attempted to take any of the actions
described in clauses "(a)" through "(e)" above.

     2.16 Proceedings; Orders.

     Except as set forth in Part 2.16 of the Disclosure Schedule, there is no
pending Proceeding, and no Person has threatened to commence any Proceeding.

     2.17 Authority; Binding Nature of Agreements.

     Metastatin has the absolute and unrestricted right, power and authority to
enter into and to perform its obligations under this Agreement; and the
execution, delivery and performance by Metastatin of this Agreement have been
duly authorized by all necessary action on the part of Metastatin and its
shareholders, board of directors and officers. This Agreement constitutes the
legal, valid and binding obligation of Metastatin, enforceable against
Metastatin in accordance with its terms.

     2.18 Non-Contravention Consents.

     Except as set forth in Part 2.18 of the Disclosure Schedule, neither the
execution and delivery of any of the Transactional Agreements, nor the
consummation or performance of any of the Transactions, will directly or
indirectly (with or without notice or lapse of time):

     (a) contravene, conflict with or result in a violation of (i) any of the
provisions of Metastatin's Articles of Incorporation or bylaws, or (ii) any
resolution adopted by Metastatin's shareholders, Metastatin's board of directors
or any committee of Metastatin's board of directors;

     (b) contravene, conflict with or result in a violation of, or give any
Governmental Body or other Person the right to challenge any of the Transactions
or to exercise any remedy or obtain any relief under, any Legal Requirement or
any Order to which Metastatin or the Selling Shareholder, or any of the assets
owned or used by Metastatin, is subject.

                                       10
<PAGE>

     2.19 Brokers.

     Except as set forth in Part 2.19 of the Disclosure Schedule, neither
Metastatin or any Selling Shareholder, has agreed or become obligated to pay, or
has taken any action that might result in any Person claiming to be entitled to
receive, any brokerage commission, finder's fee or similar commission or fee in
connection with any of the Transactions.

     2.20 Full Disclosure. None of the Transactional Agreements contains or will
contain any untrue statement of fact; and none of the Transactional Agreements
omits or will omit to state any fact necessary to make any of the
representations, warranties or other statements or information contained therein
not misleading.

     2.21 Representations and Warranties of All Selling Shareholders.

     Each Selling Shareholder severally and not jointly represents and warrants,
to and for the benefit of the Purchaser, as follows:

     (a) Each Selling Shareholder has, and the Purchaser will acquire at the
Closing, good and valid title to the Shares free and clear of all Encumbrances.

     (b) Each Selling Shareholder has delivered to the Purchaser accurate and
complete copies of the stock certificates evidencing his or her Shares.

     (c) Each Selling Shareholder has the right, power and capacity to enter
into and to perform the Selling Shareholder's obligations under each of the
Transactional Agreements to which the Selling Shareholder is or may become a
party. This Agreement constitutes the legal, valid and binding obligation of
each Selling Shareholder, enforceable against each Selling Shareholder in
accordance with its terms. Upon the execution of each of the other Transactional
Agreements at the Closing, each of such other Transactional Agreements will
constitute the legal, valid and binding obligation of each Selling Shareholder,
and will be enforceable against each Selling Shareholder in accordance with its
terms.

3. REPRESENTATIONS AND WARRANTIES OF PURCHASER

     The Purchaser represents and warrants, to and for the benefit of the
Selling Shareholders, as follows:

     3.1 Acquisition of Shares.

     The Purchaser is not acquiring the Shares with the current intention of
making a public distribution thereof.

                                       11
<PAGE>

     3.2 Organization and Qualification; Absence of Subsidiaries.

     The Purchaser is a corporation duly organized and validly existing and in
good standing under the laws of the State of Nevada and has the requisite power
and authority to own, lease and operate its properties and to carry on its
business as it is currently being conducted. The Purchaser is in good standing
in the State of Nevada. The Purchaser is duly qualified or licensed and is in
good standing, in each jurisdiction where the character of the properties owned,
leased or operated by it or the nature of its business makes such qualification
or licensing necessary, except for such failures to be so qualified or licensed
and in good standing that would not, individually or in the aggregate, have a
material adverse effect on the business, properties, assets, financial
condition, prospects or future business of the Purchaser (collectively, a
"Purchaser Material Adverse Effect"). Except as set forth on Part 3.2 of the
Disclosure Schedule, the Purchaser does not have any subsidiaries nor an equity
interest in any partnerships or joint venture arrangements or other business
entity.

     3.3 Shares; Capitalization.

     The authorized capital stock of the Purchaser consists of 250,000,000
shares of common stock, of which 151,657,125 shares are issued and outstanding
and 5,000,000 shares of preferred stock, none of which is outstanding. The
Purchaser common stock will be, as of the Closing Date, duly and validly
authorized and issued, fully paid and non-assessable, and will be issued to the
Selling Shareholders free of all Encumbrances, claims and liens whatsoever.
Other than voting rights, redemption rights and such other rights conferred by
the Purchaser's charter documents and by applicable Nevada statutes, there exist
no Securities Rights (as defined herein) with respect to the Purchaser common
stock. None of the Purchaser common stock was issued in violation of the terms
of any agreement or other understanding, and were issued in compliance with
applicable securities laws and regulations. For the purposes of this section
"Securities Rights" means, with respect to the Purchaser common stock, and
includes all written or unwritten contractual rights relating to the issuance,
sale, assignment, transfer, purchase, redemption, conversion, exchange,
registration or voting of the Purchaser common stock and all rights conferred by
the Purchaser's governing documents and by any applicable agreement.

     3.4 Liabilities and Obligations.

     The Purchaser has no material debt, obligation or liability, absolute,
fixed, contingent or otherwise, of any nature whatsoever, whether due or to
become due, including any unasserted claim, whether incurred directly or by any
predecessor thereto, and whether arising out of any act, omission, transaction,
circumstance, sale of goods or services, state of facts or other condition,
which individually or in the aggregate would have a Purchaser Material Adverse
Effect except: (i) those reflected or reserved against on the Purchaser
Financial Statements (as defined herein) in the amounts shown therein; (ii)
those that have arisen in the ordinary course of business of the Purchaser after
the Balance Sheet Date (as defined herein) through the Closing Date, none of
which, individually or in the aggregate, has had or will have an the Purchaser
Material Adverse Effect on the business or financial condition of the Purchaser;
and (iii) those set forth in Part 3.4 of the Disclosure Schedule.

                                       12
<PAGE>

     3.5 Articles of Incorporation and By-Laws.

         The Purchaser has heretofore made available and delivered to Metastatin
and the Selling Shareholders a complete and correct copy of the articles of
incorporation and the by-laws of the Purchaser. Such Articles of Incorporation
and By-Laws are in full force and effect and have not been amended or modified.

     3.6 Authority Relative to This Agreement.

     The Purchaser has all necessary corporate power and authority to execute
and deliver this Agreement, to perform its obligations hereunder and to
consummate the transactions contemplated by this Agreement. The execution and
deliver of this Agreement by the Purchaser and the consummation by the Purchaser
of the transactions contemplated by this Agreement have been duly authorized by
all necessary action on the part of the Purchaser as are necessary to authorize
this Agreement or to consummate the transactions contemplated by this Agreement.
This Agreement has been duly and validly executed and delivered by the Purchaser
and constitutes the legal, valid and binding obligations of the Purchaser,
enforceable against the Purchaser in accordance with its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency, reorganization
or other similar laws of general application affecting the enforcement of
creditors' rights generally

     3.7 Compliance With Law.

     The business and activities of the Purchaser have at all times been
conducted in accordance with its Articles of Incorporation and by-laws, any
applicable law, regulation, ordinance, order, license, permit, rule, injunction
or other restriction or ruling of any court or administrative or governmental
agency, ministry, or body.

     3.8 Full Disclosure.

     No representation or warranty of the Purchaser contained in this Agreement,
and none of the statements or information concerning the Purchaser contained in
this Agreement and the Exhibits and Schedules hereto, contains or will contain
any untrue statement of a material fact nor will such representations,
warranties, covenants or statements taken as a whole omit a material fact
required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading.

     3.9 Brokers.

     The Purchaser has not agreed or become obligated to pay, and has not taken
any action that might result in any Person claiming to be entitled to receive,
any brokerage commission, finder's fee or similar commission or fee in
connection with any of the Transactions.

                                       13
<PAGE>

4. PRE-CLOSING COVENANTS OF METASTATIN AND THE SELLING SHAREHOLDERS

     4.1 Access and Investigation.

     Metastatin shall ensure that, at all times during the Pre-Closing Period:

     (a) Metastatin and its Representatives provide the Purchaser and its
Representatives with free and complete access to Metastatin's Representatives,
personnel and assets and to all existing books, records, Tax Returns, work
papers and other documents and information relating to Metastatin;

     (b) Metastatin and its Representatives provide the Purchaser and its
Representatives with such copies of existing books, records, Tax Returns, work
papers and other documents and information relating to Metastatin as the
Purchaser may request in good faith; and

     (c) Metastatin and its Representatives compile and provide the Purchaser
and its Representations with such additional financial, operating and other data
and information regarding Metastatin as the Purchaser may request in good faith.

     4.2 Confidentiality.

     Metastatin and each Selling Shareholder shall ensure that, during the
Pre-Closing Period:

     (a) Metastatin, its Representatives and each Selling Shareholders keep
strictly confidential the terms of this Agreement;

     (b) neither Metastatin nor any of its Representatives nor any Selling
Shareholder issues or disseminates any press release or other publicity
regarding any of the Transactions, except to the extent that Metastatin is
required by law to make any such disclosure regarding the Transactions; or is
necessary to carry out the terms of this agreement; and

     (c) if Metastatin is required by law to make any disclosure regarding the
Transactions, Metastatin, where economically reasonable, advises the Purchaser,
at least five business days before making such disclosure, of the nature and
content of the intended disclosure unless otherwise required by law.

5. PRE-CLOSING COVENANT OF PURCHASER

     5.1 Access and Investigation.

     The Purchaser shall ensure that, at all times during the Pre-Closing
Period, the Purchaser shall provide Metastatin with free and complete access to
the Purchaser's Representatives and existing books and records.

                                       14
<PAGE>

     5.2 Best Efforts.

     During the Pre-Closing Period, the Purchaser shall use its Best Efforts to
cause the condition set forth in Section 7.2 to be satisfied.

     5.3 Confidentiality.

     The Purchaser shall ensure that, during the Pre-Closing Period neither the
Purchaser nor any of its Representatives issues or disseminates any press
release regarding any of the Transactions, except to the extent that the
Purchaser is required by law to make any such disclosure regarding the
Transactions.

6. CONDITIONS PRECEDENT TO PURCHASER'S OBLIGATION TO CLOSE

     The Purchaser's obligation to purchase the Shares and to take the other
actions required to be taken by the Purchaser at the Closing is subject to the
satisfaction, at or prior to the Closing, of each of the following conditions
(any of which may be waived by the Purchaser, in whole or in part):

     6.1 Satisfactory Completion of Pre-Acquisition Review.

     The Purchaser shall have satisfactorily completed its pre-acquisition
investigation and review of Metastatin's business, condition, assets,
liabilities, operations, financial performance, net income and prospects and
shall be satisfied with the results of that investigation and review.

     6.2 Accuracy of Representations.

     (a) Each of the specified representations contained in this document shall
have been accurate in all material respects as of the date of this Agreement,
and shall be accurate in all material respects as of the Closing Date as if made
at the Closing Date, without giving effect to any update to the Disclosure
Schedule.

     (b) All of the other representations and warranties made by Metastatin and
each Selling Shareholder in this Agreement (considered collectively), and each
of said representations and warranties (considered individually), shall have
been accurate in all material respects as of the date of this Agreement, and
shall be accurate in all material respects as of the Closing Date as if made at
the Closing Date, without giving effect to any update to the Disclosure
Schedule.

     6.3 Performance of Obligations.

     (a) Each Selling Shareholder shall have executed and delivered each of the
agreements required to be executed and delivered by the Selling Shareholders
pursuant to Section 1.3(b).

     (b) Each Selling Shareholder shall have delivered to the Purchaser the
certificates representing the Shares as required by Section 1.3(b)(i), and each
Selling Shareholder shall have executed and delivered each of the other
documents required to be executed and delivered by each Selling Shareholder
pursuant to Section 1.3 and Section 1.4.

                                       15
<PAGE>

     (c) All of the other covenants and obligations that Metastatin and each
Selling Shareholder are required to comply with or to perform at or prior to the
Closing (considered collectively), and each of said covenants and obligations
(considered individually), shall have been duly complied with and performed in
all material respects.

     6.4 Approval of Purchaser's Board of Directors; Consents.

     (a) The Purchaser's board of directors shall have ratified the execution of
this Agreement by the Purchaser and shall have approved the consummation of the
Transactions.

     (b) Each of the Consents identified in Section 2.8 of the Disclosure
Schedule shall have been obtained and shall be in full force and effect.

     6.5 No Adverse Change.

     There shall have been no material adverse change in Metastatin's business,
condition, assets, liabilities, operations, financial performance or net income
or prospects since the date of the Agreement.

     6.6 Additional Documents.

     Purchaser shall have received such other documents as the Purchaser may
request in good faith for the purpose of (i) evidencing the accuracy of any
representation or warranty made by Metastatin or any Selling Shareholder, (ii)
evidencing the compliance by Metastatin or any Selling Shareholder with, or the
performance by Metastatin or each Selling Shareholder of, any covenant or
obligation set forth in this Agreement, (iii) evidencing the satisfaction of any
condition set forth in this Section 6, or (iv) otherwise facilitating the
consummation or performance of any of the Transactions.

     6.7 No Proceedings.

     Since the date of this Agreement, there shall not have been commenced or
threatened against the Metastain, or against any Person affiliated with the
Metastatin, any Proceeding (a) involving any challenge to, or seeking damages or
other relief in connection with, any of the Transactions, or (b) that may have
the effect of preventing, delaying, making illegal or otherwise materially
interfering with any of the Transactions.

     6.8 No Claim Regarding Stock Ownership or Sale Proceeds.

     No Person shall have made or threatened any claim asserting that such
Person (a) may be the holder or the beneficial owner of, or may have the right
to acquire or to obtain beneficial ownership of, any capital stock or other
securities of Metastatin, or (b) may be entitled to all or any portion of the
Purchase Price.

                                       16
<PAGE>

     6.9 No Prohibition.

     To Knowledge of each Selling Shareholder and Metastatin, neither the
consummation nor the performance of any the Transactions will, directly or
indirectly (with or without notice or lapse of time), contravene or conflict
with or result in a violation of, or cause the Purchaser or any Person
affiliated with the Purchaser to suffer any adverse consequence under, (a) any
applicable Legal Requirement or Order, or (b) any Legal Requirement or Order
that has been proposed by or before any Governmental Body.

     6.10 Modification of the DBED Debt.

     Metastatin is indebted to the Department of Business and Economic
Development, a principal department of the State of Maryland (the "DBED"), in
the principal amount of One Hundred Fifty Thousand Dollars (US$150,000.00), (the
"DBED Debt"). Metastatin shall have negotiated a modification of the DBED Debt
with DBED such that, at Closing, the outstanding balance of the DBED Debt and
the terms governing such DBED Debt are satisfactory to the Purchaser in its sole
discretion.

     6.11 Modification of the GW Debt.

     Metastatin is indebted to George Washington University ("GW") in the
principal amount of One Hundred Ten Thousand Two Hundred Thirty-Three Dollars
(US$110,233.00), plus interest (the "GW Debt"). Metastatin shall have negotiated
a modification of the GW Debt with GW such that, at Closing, the outstanding
balance of the GW Debt and the terms governing the GW Debt are satisfactory to
the Purchaser in its sole discretion.

7.       CONDITIONS PRECEDENT TO SELLING SHAREHOLDER'S OBLIGATION TO CLOSE

     The Selling Shareholders' obligations to sell the Shares and to take the
other actions required to be taken by the Selling Shareholders at the Closing is
subject to the satisfaction, at or prior to the Closing, of each of the
following conditions (any of which may be waived by the Selling Shareholder, in
whole or in part):

     7.1 Satisfactory Completion of Pre-Acquisition Review.

     The Selling Shareholders and the Selling Shareholder Representative shall
have satisfactorily completed its pre-acquisition investigation and review of
the Purchaser and its organizational and operational documents.

     7.2 Accuracy of Representations.

     All of the representations and warranties made by the Purchaser in this
Agreement (considered collectively), and each of said representations and
warranties (considered individually), shall have been accurate in all respects
as of the date of this Agreement and shall be accurate in all respects as of the
Closing Date as if made at the Closing.

                                       17
<PAGE>

     7.3 Purchaser's Performance.

     All of the other covenants and obligations that the Purchaser is required
to comply with or to perform pursuant to this Agreement at or prior to the
Closing (considered collectively), and each of said covenants and obligations
(considered individually), shall have been complied with and performed in all
respects.

     7.4 No Injunction.

     There shall not be in effect any injunction that shall have been entered by
a court of competent jurisdiction since the date of this Agreement that
prohibits the sale of the Shares by the Selling Shareholder to the Purchaser.

8.       TERMINATION

     8.1 Termination Events.

     This Agreement may be terminated prior to the Closing:

     (a) by the Purchaser if (i) there is a material Breach of any covenant or
obligation of Metastatin or any Selling Shareholder, or (ii) the Purchaser
reasonably determines that the timely satisfaction of any condition set forth in
Section 6 has become impossible or impractical (other than as a result of any
failure on the part of the Purchaser to comply with or perform its covenants and
obligations under this Agreement);

     (b) by Metastatin if (i) there is a material Breach of any covenant or
obligation of the Purchaser, or (ii) Metastatin reasonably determines that the
timely satisfaction of any condition set forth in Section 7 has become
impossible or impractical (other than as a result of any failure on the part of
Metastatin or any Selling Shareholder to comply with or perform any covenant or
obligation set forth in this Agreement);

     (c) by the Purchaser if the Closing has not taken place on or before
November 20, 2006 (other than as a result of any failure on the part of the
Purchaser to comply with or perform its covenants and obligations under this
Agreement);

     (d) by Metastatin if the Closing has not taken place on or before November
20, 2006 (other than as a result of the failure on the part of Metastatin or any
Selling Shareholder to comply with or perform any covenant or obligation set
forth in this Agreement); or

     (e) by the mutual consent of the Purchaser and Metastatin.

     8.2 Termination Procedures.

     If the Purchaser wishes to terminate this Agreement pursuant to Section
8.1(a) or Section 8.1(c), the Purchaser shall deliver to Metastatin a written
notice stating that the Purchaser is terminating this Agreement and setting
forth a brief description of the basis on which the Purchaser is terminating
this Agreement. If Metastatin wishes to terminate this Agreement pursuant to
Section 8.1(b) or Section 8.1(d), Metastatin shall deliver to the Purchaser a
written notice stating that Metastatin is terminating this Agreement and setting
forth a brief description of the basis on which Metastatin is terminating this
Agreement.

                                       18
<PAGE>

     8.3 Effect of Termination.

     If this Agreement is terminated pursuant to Section 8.1, all further
obligations of the parties under this Agreement shall terminate; provided,
however, that no party shall be relieved of any obligation or other Liability
arising from any Breach by such party of any provision of this Agreement.

9.       INDEMNIFICATION, ETC.

     9.1 Survival of Representations and Covenants.

     (a) The representations, warranties, covenants and obligations of each
party shall survive:

          (i) the Closing and the sale of the Shares to the Purchaser.

     (b) The representations, warranties, covenants and obligations of
Metastatin and each Selling Shareholder, and the rights and remedies that may be
exercised by the Indemnitiees, shall not be limited or otherwise affected by or
as a result of any information furnished to, or any investigation made by or
knowledge of, any of the Indemnitees or any of their Representatives.

     9.2 Indemnification by Select Shareholders.

     The Select Shareholders shall hold harmless and indemnify each of the
Indemnitees from and against, and shall compensate and reimburse each of the
Indemnitees for, any Damages which are directly or indirectly suffered or
incurred by any of the Indemnitees or to which any of the Indemnitees may
otherwise become subject at any time (regardless of whether or not such Damages
relate to any third-party claim) and which arise directly or indirectly from or
as a direct or indirect result of, or are directly or indirectly connected with:

          (i) any Breach of any representation or warranty made by Metastatin in
this Agreement or in the Closing Certificate; or

          (ii) any Breach of any representation, warranty, statement,
information or provision contained in the Disclosure Schedule or in any other
document delivered or otherwise made available to the Purchaser; or

          (iii) any Breach of any covenant or obligation of Metastatin in this
Agreement or in any other document delivered or otherwise made available to the
Purchaser.

The indemnification provided by the Select Shareholders shall expire one year
from the Closing Date. The liability of the Select Shareholders shall not exceed
(i) the value of the Samaritan stock that they receive on the Closing Date or
(ii) in the event that Samaritan stock is sold subsequent to the Closing Date
the net consideration received by the Select Shareholders. As between the Select
Shareholders, such indemnification shall be proportional to the number of shares
of Samaritan Stock that each Select Shareholder received on the Closing Date.

                                       19
<PAGE>

     9.3 No Contribution.

     The Select Shareholders waive, and acknowledge and agree that they shall
not have and shall not exercise or assert or attempt to exercise or assert, any
right of contribution or right of indemnity or any other right or remedy against
Metastatin or Samaritan in connection with any indemnification obligation to
which they may become subject under the provisions of Section 9.2.

10.      MISCELLANEOUS PROVISIONS

     10.1 Further Assurances.

     Each party hereto shall execute and/or cause to be delivered to each other
party hereto such instrument and other documents, and shall take such other
actions, as such other party may reasonably request (prior to, at or after the
Closing) for the purpose of carrying out or evidencing any of the Transactions.

     10.2 Attorneys' Fees.

     If any legal action or other legal proceeding relating to any of the
Transactional Agreements or the enforcement of any provision of any of the
Transactional Agreements is brought against any party hereto, the prevailing
party shall be entitled to recover reasonable attorneys' fees, costs and
disbursements (in addition to any other relief to which the prevailing party may
be entitled).

     10.3 Notices.

     Any notice or other communication required or permitted to be delivered to
any party under this Agreement shall be in writing and shall be deemed properly
delivered, given and received when delivered or refused (by hand, by U.S. first
class certified mail, return receipt requested, postage prepaid, by courier or
express delivery service or by facsimile) to the address or facsimile number set
forth beneath the name of such party below (or to such other address or
facsimile number as such party shall have specified in a written notice given to
the other parties hereto):

                                       20
<PAGE>

     10.4 Time of the Essence.

     Time is of the essence for this Agreement.

     10.5 Headings.

     The underlined headings contained in this Agreement are for convenience of
reference only, shall not be deemed to be a Part of this Agreement and shall not
be referred to in connection with the construction or interpretation of this
Agreement.

     10.6 Counterparts.

     This Agreement may be executed in several counterparts, each of which shall
constitute an original and all of which, when taken together, shall constitute
one agreement.

     10.7 Governing Law; Venue.

     This Agreement shall be construed in accordance with, and governed in all
respects by, the internal laws of the State of Nevada (without giving effect to
principles of conflicts of laws).

     10.8 Successors and Assigns.

     This Agreement shall be binding upon: Metastatin and its successors and
assigns (if any); each Selling Shareholder and his respective personal
representatives, executors, administrators, estates, heirs, successors and
assigns (if any); and the Purchaser and its successors and assigns (if any).
This Agreement shall inure to the benefit of: Metastatin; each Selling
Shareholder; and the Purchaser; and the respective successors and permitted
assigns (if any) of the foregoing.

     10.9 Waiver.

     (a) No failure on the part of any Person to exercise any power, right,
privilege or remedy under this Agreement and no delay on the part of any Person
in exercising any power, right, privilege or remedy under this Agreement, shall
operate as a waiver of such power, right, privilege or remedy; and no single or
partial exercise of any such power, right, privilege or remedy shall preclude
any other or further exercise thereof or of any other power, right, privilege or
remedy.

     (b) No Person shall be deemed to have waived any claim arising out of this
Agreement, or any power, right, privilege or remedy under this Agreement, unless
the waiver of such claim, power, right, privilege or remedy is expressly set
forth in a written instrument duly executed and delivered on behalf of such
Person; and any such waiver shall not be applicable or have any effect except in
the specific instance in which it is given.

                                       21
<PAGE>

     10.10 Amendments.

     This Agreement may not be amended, modified, altered or supplemented other
than by means of a written instrument duly executed and delivered on behalf of
the Purchaser, Metastatin and the Selling Shareholders.

     10.11 Severability.

     In the event that any provision of this Agreement, or the application of
any such provision to any Person or set of circumstances, shall be determined to
be invalid, unlawful, void or unenforceable to any extent, the remainder of this
Agreement, and the application of such provision to Persons or circumstances
other than those as to which it is determined to be invalid, unlawful, void or
unenforceable, shall not be impaired or otherwise affected and shall continue to
be valid and enforceable to the fullest extent permitted by law.

     10.12 Entire Agreement.

     The Transactional Agreements set forth the entire understanding of the
parties relating to the subject matter thereof and supersede all prior
agreements and understandings among or between any of the parties relating to
the subject matter thereof.

                                       22
<PAGE>

         THE PARTIES HERETO have caused this Agreement to be executed and
delivered as of November 6, 2006.

"SAMARITAN":                            SAMARITAN PHARMACEUTICALS, INC.

                                        By:      /s/ Janet Greeson, CEO
                                                 ------------------------------
                                        Name:    Janet Greeson
                                                 ------------------------------
                                        Title:   CEO
                                                 ------------------------------

"METASTATIN":                           METASTATIN PHARMACEUTICALS, INC.

                                        By:      /s/ Donald M. McGuire
                                                 ------------------------------
                                        Name:    Donald M. McGuire
                                                 ------------------------------
                                        Title:   CEO and President
                                                 ------------------------------

                                       23
<PAGE>

                                    EXHIBIT A

                               CERTAIN DEFINITIONS

         For purposes of the Agreement (including this Exhibit A):

         Acquisition Transaction.  "Acquisition Transaction" shall mean any
transaction:

         (a)      the sale or other  disposition of all or any portion of
Metastatin's  business or assets (other  than in the Ordinary Course of
Business);

         (b)      the issuance, sale or other disposition of:

                  (i)      any capital stock of Metastatin,

                  (ii)     any option, call, warrant or right (whether or not
immediately  exercisable) to acquire any capital stock of Metastatin, or

                  (iii) any security, instrument or obligation that is or may
become convertible into or exchangeable for any capital stock of Metastatin; or

         (c)      any merger, consolidation, business combination, share
exchange, reorganization or similar transaction involving Metastatin.

         Agreement. "Agreement" shall mean the Stock Purchase Agreement to which
this Exhibit A is attached (including the Disclosure Schedule) as it may be
amended from time to time.

         Best Efforts. "Best Efforts" shall mean the efforts that a prudent
Person desiring to achieve a particular result would use in order to ensure that
such result is achieved as expeditiously as reasonably possible.

         Breach. There shall be deemed to be a "Breach" of a representation,
warranty, covenant, obligation or other provision if there is or has been:

         (a)      any material inaccuracy in or breach of, or any failure to
comply with or perform, such representation, warranty, covenant, obligation or
other provision, or

         (b)      any material claim by any Person) or other circumstance that
is inconsistent with such representation, warranty, covenant, obligation or
other provision; and the term "Breach" shall be deemed to refer to any such
material inaccuracy, breach, failure, claim or circumstance.

         CERCLA. "CERCLA" shall mean the Comprehensive Environmental Response,
Compensation and Liability Act.

         Closing. "Closing" shall have the meaning specified in Section 1.3(a)
of the Agreement.

         Closing Certificate. "Closing Certificate" shall have the meaning
specified in Section 1.3(b)(vii) of the Agreement.

                                       A-1
<PAGE>

         Closing Date.  "Closing Date" shall have the meaning specified in
Section 1.3(a) of the Agreement.

         Company Plan.  "Company Plan" shall mean any Current Benefit Plan or
Past Benefit Plan.

         Comparable Entities. "Comparable Entities" shall mean Entities of
similar size, scope and customer market (other than Metastatin) that are engaged
in businesses similar to Metastatin's business.

         Consent. "Consent" shall mean any approval, consent, ratification,
permission, waiver or authorization (including any Governmental Authorization).

         Contract. "Contract" shall mean any written, oral, implied or other
agreement, contract, understanding, arrangement, instrument, note, guaranty,
indemnity, representation, warranty, deed, assignment, power of attorney,
certificate, purchase order, work order, insurance policy, benefit plan,
commitment, covenant, assurance or undertaking of any nature.

         Damages. "Damages" shall include any direct loss, damage, injury,
liability, claim, demand, settlement, judgment, award, fine, penalty, tax,
reasonable fee (including any legal fee, expert fee, accounting fee or advisory
fee), charge, cost (including any cost of investigation).

         Disclosure. "Disclosure Schedule" shall mean the schedule (dated as of
the date of the Agreement) delivered to the Purchaser on behalf of Metastatin
and the Selling Shareholders, a copy of which is attached to the Agreement and
incorporated in the Agreement by reference.

         Encumbrance. "Encumbrance" shall mean any lien, pledge, hypothecation,
charge, mortgage, security interest, encumbrance, equity, trust, equitable
interest, claim, preference, right of possession, lease, tenancy, license,
encroachment, covenant, infringement, interference, Order, proxy, option, right
of first refusal, preemptive right, community property interest, legend, defect,
impediment, exception, reservation, limitation, impairment, imperfection of
title, condition or restriction of any nature (including any restriction on the
voting of any security, any restriction on the transfer of any security or other
asset, any lawful restriction on the receipt of any income derived from any
asset, any restriction on the use of any asset and any restriction on the
possession, exercise or transfer of any other attribute of ownership of any
asset).

         Entity. "Entity" shall mean any corporation (including any non-profit
corporation), general partnership, limited partnership, limited liability
partnership, joint venture, estate, trust, cooperative, foundation, society,
political party, union, company (including any limited liability company or
joint stock company), firm or other enterprise, association, organization or
entity;

         GAAP. "GAAP" shall mean generally accepted accounting principles,
applied on a basis consistent with the basis on which the Metastatin Financial
Statements were prepared.

         Governmental Authorization.  "Governmental Authorization" shall mean
any:

         (a)      permit, license, certificate, franchise, concession, approval,
consent, ratification, permission, clearance, confirmation, endorsement, waiver,
certification, designation, rating, registration, qualification or authorization
that is, has been or may in the future be issued, granted, given or otherwise
made available by or under the authority of any Governmental Body or pursuant to
any Legal Requirement; or

                                      A-2
<PAGE>

         (b)      under any Contract with any Governmental Body.

         Governmental Body.  "Governmental Body" shall mean any:

         (a)      nation, principality, state, commonwealth,  province,
territory, county, municipality, district or other jurisdiction of any nature;

         (b)      federal, state, local, municipal, foreign or other government;

         (c)      governmental or quasi-governmental authority of any nature
(including any governmental division, subdivision, department, agency, bureau,
branch, office, commission, council, boars, instrumentality, officer, official,
representative, organization, unit, body or Entity and any court or other
tribunal);

         (d)      multi-national organization or body; or

         (e)      individual,   Entity  or  body  exercising,   or  entitled  to
 exercise,  any  executive,   legislative,   judicial, administrative,
regulatory, police, military or taxing authority or power of any nature.

         Indemnitees. "Indemnitees" shall mean the following Persons:

         (a)      the Purchaser;

         (b)      the Purchaser's current and future affiliates (including
Metastatin);

         (c)      the respective Representatives of the Persons referred to in
clauses "(a)"-"(b)" above; and

         (d)      the respective successors and assigns of the Persons referred
to in clauses "(a)", "(b)" and"(c)" above;

provided, however, that (i) Metastatin shall not be entitled to exercise any
rights as an Indemnitee prior to the Closing.

         Knowledge. An individual shall be deemed to have "Knowledge" of a
particular fact or other matter if:

         (a)      such individual is actually aware of such fact or other
matter; or

         (b)      a prudent individual could be expected to discover or
otherwise become aware of such fact or other matter in the ordinary course of
conducting a business related investigation concerning the truth or existence of
such fact or other matter.

                                      A-3
<PAGE>

         Metastatin shall be deemed to have "Knowledge" of a particular fact or
other matter if any officer, employee or other Representative of Metastatin has
Knowledge of such fact or other matter.

         Legal Requirement. "Legal Requirement" shall mean any federal, state,
local, municipal, foreign or other law, statute, legislation, constitution,
principle of common law, resolution, ordinance, code, edict, decree,
proclamation, treaty, convention, rule, regulation, ruling, directive,
pronouncement requirement, specification, determination, decision, opinion or
interpretation that is or has been issued, enacted, adopted, passed, approved,
promulgated, made, implemented or otherwise put into effect by or under the
authority of any Governmental Body.

         Liability. "Liability" shall mean any known or should be known debt,
obligation, duty or liability of any nature, regardless of whether such debt,
obligation, duty or liability would be required to be disclosed on a balance
sheet prepared in accordance generally accepted accounting principles and
regardless of whether such debt, obligation, duty or liability is immediately
due and payable.

         Metastatin. "Metastatin" shall mean Metastatin Pharmaceuticals, Inc., a
Maryland corporation.

         Metastatin Contract.  "Metastatin Contract" shall mean any Contract:

         (a)      to which Metastatin is a party;

         (b)      by which  Metastatin or any of its assets is or may become
bound or under which Metastatin has, or may become subject to, any obligation;
or

         (c)      under which Metastatin has or may acquire any right or
interest.

         Metastatin  Financial  Statements.  "Metastatin  Financial  Statements"
shall have the meaning specified in  Section 2.4(a) of the Agreement.

         Order. "Order" shall mean any:

         (a)      order, judgment, injunction, edict, decree, ruling,
pronouncement, determination, decision, opinion, verdict, sentence, subpoena,
writ or award that is, has been or may in the future be issued, made, entered,
rendered or otherwise put into effect by or under the authority of any court,
administrative agency or other Governmental Body or any arbitrator or
arbitration panel; or

         (b)      Contract with any Governmental Body that is, has been or may
in the future be entered into in connection with any Proceeding.

         (c)      with respect to which Metastatin or any ERISA Affiliate has
ever made, or has ever been required or permitted to make, any contribution; or

         (d)      with respect to which Metastatin or any ERISA Affiliate has
ever been subject to any Liability.

                                      A-4
<PAGE>

         Person. "Person" shall mean any individual, Entity or Governmental
Body.

         Pre-Closing Period. "Pre-Closing Period" shall mean the period
commencing as of the date of the Agreement and ending at the Closing on the
Closing Date.

         Proceeding. "Proceeding" shall mean any action, suit, litigation,
arbitration, proceeding (including any civil, criminal, administrative,
investigative or appellate proceeding and any informal proceeding), prosecution,
contest, hearing, inquiry, inquest, audit, examination or investigation
commenced, brought, conducted or heard by or before, or that otherwise has
involved or may involve, any Governmental Body or any arbitrator or arbitration
panel.

         Proprietary Asset. "Proprietary Asset" shall mean any patent, patent,
application, trademark (whether registered or unregistered and whether or not
relating to a published work), trademark application, trade name, fictitious
business name, service mark (whether registered or unregistered), service mark
application, copyright (whether registered or unregistered), copyright
application, maskwork, maskwork application, trade secret, know-how, franchise,
system, computer software, invention, design, blueprint, proprietary product,
technology, proprietary right or other intellectual properly right or intangible
asset.

         Purchase Price.  "Purchase Price" shall have the meaning specified in
Section 1.2 of the Agreement.

         Purchaser. "Purchaser" shall mean Samaritan Pharmaceuticals, Inc., a
Nevada corporation.

         Representatives. "Representatives" shall mean officers, directors,
employees, agents, attorneys, accountants, advisors and representatives. All
other Related Parties shall be deemed to be "Representatives" of Metastatin.

         Select Shareholders. The "Select Shareholders" are __________,
___________,  _______________,  _____________,  _______________ and
_________________.

         Selling Shareholder.  "Selling Shareholders" shall have the meaning
specified in the introductory paragraph of the Agreement.

         Shares. "Shares" shall have the meaning specified in Recital "A" to the
Agreement.

         Tax. "Tax" shall mean any tax (including any income tax, franchise tax,
capital gains tax, estimated tax, gross receipts tax, value-added tax, surtax,
excise tax, ad valorem tax, transfer tax, stamp tax, tax, use tax, property tax,
business tax, occupational tax, inventory tax, occupancy tax, withholding tax or
payroll tax), levy, assessment, tariff, impost, imposition, toll, duty
(including any customs duty), deficiency or fee, and any directly related charge
or amount (including any fine, penalty or interest), that is, has been or may in
the future be:

         (a)      imposed, assessed or collected by or under the authority of
any Governmental Body, or

         (b)      payable pursuant to any tax-sharing agreement or similar
Contract.

                                      A-5
<PAGE>

         Tax Return. "Tax Return" shall mean any return (including any
information return), report, statement, declaration, estimate, schedule, notice,
notification, form, election, certificate or other document or information that
is, has been or may in the future be filed with or submitted to, or required to
be filed with or submitted to, any Governmental Body in connection with the
determination, assessment, collection or payment of any Tax or in connection
with the administration, implementation or enforcement of or compliance with any
Legal Requirement relating to any Tax.

         Transactional Agreements.  "Transactional Agreements" shall mean:

         (a)      the Agreement;

         (b)      the General Release referred to in Section 1.3(b)(vi) of the
Agreement;

         (c)      the Closing Certificate, Section 1.3(b)(vii).

         Unaudited Interim Financial Statements.  "Unaudited Interim Financial
Statements"6-K

Exhibit 10.1  

ASSET PURCHASE
AGREEMENT 

        THIS
ASSET PURCHASE AGREEMENT (this "Agreement"), dated as of November 7, 2006, is by and
between SuperCom Ltd., an Israeli corporation ("Seller") and On Track Innovations Ltd.,
an Israeli corporation ("Buyer").  

        WHEREAS,
Buyer desires to purchase certain assets of Seller and to assume certain liabilities of
Seller in connection with the Acquired Assets and Seller desires to sell such assets and
assign such liabilities to Buyer, upon the terms and conditions set forth herein (the
“Asset Purchase”); and 

        WHEREAS,
and contemporaneous with Closing, Seller and Buyer will enter into the Service and Supply
Agreement, and Buyer will issue to Seller and Seller will purchase from Buyer the
Restricted Shares pursuant to the terms of this Agreement; 

        NOW,
THEREFORE, in consideration of the premises and the representations, warranties, covenants
and agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and intending to be legally
bound hereby, the parties hereto hereby agree as follows: 

ARTICLE I 

Certain Definitions  

        As
used herein, unless the context otherwise requires, the following terms (or any variant in
the form thereof) have the following respective meanings. Terms defined below or otherwise
herein in the singular shall have a comparable meaning when used in the plural, and
vice versa, and the reference to any gender shall be deemed to include all genders.
Unless otherwise defined or the context otherwise clearly requires, terms for which
meanings are provided herein shall have such meanings when used in any Schedule hereto and
each collateral document and certificate executed or required to be executed pursuant
hereto or thereto or otherwise delivered, from time to time, pursuant hereto or thereto. 

        “Acquired
Assets” means all those properties, rights, interests and other tangible and
intangible assets of Seller, except for the Excluded Assets (as defined below), whether or
not required to be reflected on a balance sheet prepared in accordance with generally
accepted accounting principles of Seller, including without limitations: 

    (a)                 the
inventory scheduled in Part 1.1(a) of the Disclosure Schedule;  

    (b)                 the
equipment scheduled in Part 1.1(b) of the Disclosure Schedule, together with
          all existing documentations, drawings, records, instructions, manuals and other
          information related thereto;  

    (c)                 the
Software Agreements scheduled in Part 1.1(c) of the Disclosure Schedule;  

    (d)                 the
rights of Seller under the Contracts scheduled in Part 1.1(d) of the           Disclosure
Schedule;  

Page 1 of 32

    (e)                 the
Governmental Authorizations scheduled in Part 1.1(e) of the Disclosure
          Schedule;  

    (f)                 the
SuperCom Intellectual Property as scheduled in Part 1.1(f) of the Disclosure
          Schedule, including SuperCom Software (together with its source code and
          compilation modules);  

    (g)                 all
claims of Seller (including claims for past infringement of Intellectual
          Property), and causes of action of Seller against other Persons (regardless of
          whether or not such claims and causes of action have been asserted by Seller),
          and all rights of indemnity, warranty rights, rights of contribution, rights to
          refunds, rights of reimbursement and other rights of recovery possessed by
          Seller (regardless of whether such rights are currently exercisable), scheduled
          in Part 1.1(g) of the Disclosure Schedule;  

    (h)                 all
advertising and promotional materials relating to the Acquired Business; and  

    (i)                 all
books, records, files and data of Seller relating to the Acquired Business           and
necessary to its continuance.  

        “Acquired
Business” means the portion of Seller’s business, which is specifically and
principally dedicated to the development, license, sale, distribution, maintenance, or
support of the IPS activities (in the meaning used by Seller), smartcards, ID cards and/or
tags, plastic cards, passports, passport components, certificates and any similar
technology, contact and/or contactless technology and any similar technology, except for
the activities and rights used (and with regard to Intellectual Property rights,
exclusively used) in the fields specified in sub sections (i) and (ii) under the
definition of the Excluded Assets. 

        “Action”
means any action, suit, arbitration, litigation, inquiry, proceeding or investigation by
or before any court, governmental or other regulatory or administrative agency, commission
or tribunal. 

        “Adverse,”
or “Adversely” when used in conjunction with “Affect,”
“Change” and “Effect” means, with respect to Seller, Buyer or other
Person, whichever is the obligor in the context to which such term applies, any event
which could reasonably be expected to (a) adversely affect the enforceability of this
Agreement by the obligee, or (b) adversely affect the obligor’s properties, financial
condition or results of operations, or (c) impair the obligor’s ability to fulfill
its obligations under the terms of this Agreement, or (d) adversely affect the aggregate
rights and remedies of the obligee under this Agreement. 

        “Affiliate”
means, with respect to any Person, any other Person controlling, controlled by or under
common control with, such Person, with “control” for such purpose meaning the
possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting securities or
voting interests, by contract or otherwise. 

Page 2 of 32

        “Assumed
Liabilities” means those liabilities of Seller scheduled on Part 1.2 of the
Disclosure Schedule (including the Contingent Liabilities). 

        “Bill
of Sale” has the meaning assigned to it in Section 2.2(a) below. 

        “Buyer’s
Assumed Employees” means employees of Seller as the date hereof, specified in
Schedule I. 

        “Buyer
SEC Reports” has the meaning assigned to it in Section 4.4(a) below. 

        “Closing”
means the consummation of the transactions contemplated by Section 2.1 of this Agreement. 

        “Closing
Date” means the date on which the conditions set forth in Articles VII and VIII
hereof shall be satisfied or duly waived, or if Seller and Buyer mutually agree on a
different date for the Closing, the date upon which they have mutually agreed. 

        “Closing
Documents” has the meaning assigned to it in Section 2.2(b) below. 

        “Contingent
Liabilities” means, those Liabilities of Seller as of the date of this Agreement
to the extent not satisfied by Seller by the Closing Date (pursuant to their original
terms), a list of which is scheduled in Part 1.2 of the Disclosure Schedule, plus each of
the Liabilities incurred by Seller prior to Closing in the Ordinary Course of Business. 

        “Contract”
means any written note, bond, mortgage, indenture, lease, contract, instrument, license,
agreement, sales order, purchase order, open bid or other obligation or commitment and all
rights therein. 

        “Disclosure
Schedule” means the schedule (dated as of the date of the Agreement) delivered to
Buyer on behalf of Seller, a copy of which is attached hereto and incorporated herein by
reference. 

        “Entity”
means any Person other than a natural Person. 

        “Exchange
Act” means the Securities Exchange Act of 1934, as amended 

        “Excluded Assets”
means, all of Seller’s and its Affiliate’s business activities, assets and
rights, including IP rights, used in the following fields: (i) Tracking solutions based on
active RF tags; (ii) IRMS systems (formerly known as SDSMS); and (iii) the Existing
Projects, as defined herein. For the avoidance of doubt, notwithstanding anything to the
contrary herein, none of the assets described in clauses (a) to (i) of the definition of
Acquired Assets shall be deemed as Excluded Assets. 

        “Existing
Projects” means all projects listed in Part 1.3 of the Disclosure Schedule,
including inventory related thereto, but excluding the Intellectual Property rights
related thereto. 

        “Facility”
means the premises under lease pursuant to the Lease. 

Page 3 of 32

        “Governmental Authority”
means any nation or government, any state or other political subdivision thereof, any
federal, state, local or foreign Entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government, including any
government authority, agency, department, board, commission, or instrumentality of the
United States, any state of the United States or political subdivision thereof, and any
tribunal or arbitral authority of competent jurisdiction, and any self-regulatory
organization. 

        “Governmental
Authorizations” means, with regard to any Person, all approvals, concessions,
consents, franchises, licenses, permits, plans, registrations and other authorizations of
all Governmental Authorities. 

        “Indemnification
Period” has the meaning assigned to it in Section 9.1(a) below. 

        “Intellectual
Property” means all intellectual property rights, including, without limitation,
Patents with respect to a design or an invention, including patents and certificates of
addition, utility models, and patent applications, as well as, any continuation, division,
extension, renewal, revival, or reissue thereof or substitution therefore; Trademarks;
Copyrights; Trade Secrets, including any (i) information which is currently in
Seller’s possession and used, compiled or produced by the Seller for its commercial
activity, such as, for example, components supply and cost information, marketing
plans, customer lists, sales leads, competitor analyses, active transaction files,
business plans, business contacts, files, books, records and instruments, to the extent
exist, (ii) information which is currently in Seller’s possession that generally
facilitates its activity, increases its revenues, or provides an advantage over the
competition and is not generally known, to the extent exists, and (iii) any material
currently in Seller’s possession which embodies or describes the Seller and its
activity; Know-How including, without limitation all factual knowledge and information
currently in Seller’s possession which is not capable of precise, separate
description but which, in an accumulated form, after being acquired as a result of trial
and error, gives to the one acquiring it the ability to produce and market something which
one otherwise would not have known how to produce and market with the same accuracy or
precision necessary for commercial success that Seller owns or is licensed to use or has
in it’s control; Technology including impositions, articles of manufacture,
processes, apparatus, data, writings and works of authorship (including, without
limitation, software, protocols, program codes, audio-visual effects created by program
code, and documentation relating thereto); drawings and other tangible items (including,
without limitation, materials, samples, components, and operating devices, e.g., board
assemblies, prototypes, and engineering models), all of which are in Seller’s
possession at the date hereof. 

        “Key
Employees” has the meaning assigned to it in Section 3.17(a) below. 

        “Law”
means any statute, regulation, ordinance, rule, edict, resolution, principle of common
law, treaty, convention, determination or decision and other law promulgated, issued,
enacted, adopted, passed, approved or otherwise put into effect by a Governmental
Authority. 

        “Lease”
means that certain Lease Agreement, dated as of April 18 2005 by and between Seller and
Somat Hasharon Ltd. 

Page 4 of 32

        “Liability”
means any debt, obligation, duty or liability of any nature (including any unknown,
undisclosed, unmatured, unaccrued, unasserted, contingent, indirect, conditional, implied,
vicarious, derivative, joint, several or secondary liability), regardless of whether such
debt, obligation, duty or liability would be required to be disclosed on a balance sheet
prepared in accordance with generally accepted accounting principles and regardless of
whether such debt, obligation, duty or liability is immediately due and payable. 

        “Lien”
means a restriction on voting or transfer, or a pledge, lien, mortgage, hypothecation,
collateral assignment, encumbrance, easement or security interest. 

        “Lock-Up
Agreement” means that certain Lock-Up Agreement, dated as of the Closing Date,
between Seller and Buyer, in the form attached hereto as Exhibit A. 

        “Machines”
means those machines scheduled in Part 1.4 of the Disclosure Schedule. 

        “Options”
has the meaning assigned to it in Section 4.3(b) below. 

        “Orders”
means judgments, orders, injunctions, decrees, stipulations or awards (whether rendered by
a court, administrative agency, arbitrator or other tribunal and whether imposed or
entered by consent). 

        “Ordinary
Course of Business” means any action taken by or on behalf of Seller that
is: 

		    (a)                  recurring
in nature, consistent with the past practices of Seller and taken in           the
ordinary course of the normal day-to-day operations of Seller;  

		    (b)                  not
required to be authorized or reauthorized by the shareholders of Seller, the
          board of directors of Seller or any committee of the board of directors of
          Seller; and  

		    (c)                  notwithstanding
the foregoing, with regard to Liabilities incurred by the Seller           between the
date of this Agreement and the Closing Date, such Liabilities shall           be deemed
as part of the Ordinary Course of Business, as long as they do not           exceed
$20,000 individually and $150,000 in the aggregate until December           31st
2006, and $300,000 for the entire period.  

        “Ordinary
Shares” means Ordinary Shares, par value NIS 0.10 each, of Buyer. 

        “Other
Seller Businesses” means all operations, activities and businesses conducted or
committed to on or before the Closing Date, and all reasonably related activities
conducted thereafter, by Seller, or any of its Affiliates, other than the operations and
activities of Seller in connection with the Acquired Business. 

        “Person”
means an individual, a corporation, a limited liability company, a partnership, an
association, a trust or any other entity or organization, including a Governmental
Authority. 

Page 5 of 32

        “Registration
Rights Agreement” means that certain Registration Rights Agreement, dated as of
the Closing Date, between Seller and Buyer, in the form attached hereto as Exhibit B. 

        “Regulation
S” means Regulation S under the Securities Act. 

        “Restricted
Shares” means 2,827,200 Ordinary Shares, par value NIS 0.10 each of Buyer, to be
issued to Seller at Closing. 

        “SEC”
means the United States Securities and Exchange Commission. 

        “Securities
Act” means the Securities Act of 1933, as amended. 

        “Service
and Supply Agreement” means that certain Service and Supply Agreement dated as of
the Closing Date between Seller and Buyer, in substantially the form attached hereto as
Exhibit C. 

        “SuperCom
Contracts” means the Contracts listed as Acquired Assets in Part 1.1(d) of the
Disclosure Schedule. 

        “SuperCom
Intellectual Property” has the meaning assigned to it in Section 3.11(a) below. 

        “SuperCom Software”
has the meaning assigned to it part 1.1(h) to the Disclosure Schedule. 

        “Taxes”
means all taxes (whether federal, state, local or foreign) based upon or measured by
income (whether gross, net, alternative taxable or other) and any other tax whatsoever,
including, but not limited to, gross receipts, profits, sales, use, occupation, value
added, ad valorem, transfer, franchise, withholding, payroll, employment, excise or
property taxes, together with any interest, penalties or additions imposed with respect
thereto. 

        “Transaction
Documents” means: (a) this Agreement; (b) the Service and Supply Agreement; (c)
the Registration Rights Agreement; (d) the Bill of Sale; and (e) the other agreements and
documents contemplated hereby. 

ARTICLE II 

Sale of Assets; Closing  

        Section
2.1 Purchase and Sale  

        (a)              On
the basis of the representations, warranties, covenants and agreements and
          subject to the satisfaction or waiver of the conditions set forth herein, at
the           Closing, against the issuance of the Restricted Shares free and clear of
all           Liens, Buyer will purchase from Seller and Seller will sell, convey,
transfer,           assign and deliver to Buyer, free and clear of all Liens, the
Acquired Assets at           Seller’s premises, and Seller will assign and Buyer
will assume and agree           to pay, satisfy and discharge when due in accordance with
their terms any and           all Assumed Liabilities. All transactions at the Closing
shall be deemed to be           effective as of the close of business on the Closing
Date, and events taking           place and periods ending thereafter shall be deemed to
have taken place or ended           after the Closing Date.  

Page 6 of 32

        (b)              Seller
shall retain all rights with respect to the Excluded Assets and Buyer           shall
have no rights with respect to the Excluded Assets.  

        (c)              Seller
shall retain all rights, liabilities and obligations related to the           Acquired
Assets and the Acquired Business, the due date of which is prior to the           Closing
Date.  

        Section
2.2 Closing Documents At the Closing:  

        (a)              Seller
shall assign and transfer to Buyer the Acquired Assets, and Buyer shall           assume
from Seller the due payment, performance and discharge of the Assumed
          Liabilities by delivery of (i) a General Assignment, Assumption and Bill of
Sale           in form and substance reasonably satisfactory to Seller and Buyer (the
          “Bill of Sale”), duly executed by Seller and Buyer, (ii) all
          such other good and sufficient instruments of conveyance, assignment and
          transfer, and such affidavits and other instruments in form and substance as
          shall be effective to transfer to Buyer the Acquired Assets, and (iii) all such
          other good and sufficient instruments of assumption as shall be effective to
          cause Buyer to assume the Assumed Liabilities.  

        Buyer
shall issue the Restricted Shares to Seller, and shall, in such denominations as may
reasonably be requested by Seller, deliver one or more share certificates evidencing the
issuance of the Restricted Shares to Seller. 

        (b)              Seller
and Buyer shall deliver the certificates and other documents required to           be
delivered under Articles VII and VIII hereof (together with the other           documents
specified in Section 2.2(a), the “Closing           Documents”).  

        Section
2.3 Time and Place of Closing The Closing shall take place on the
Closing Date at 10:00 a.m. (Israel time), at the offices of Zysman, Aharoni, Gayer & Co.,
Law Offices, 52A Hayarkon St., Tel Aviv, or such other place or time as the parties may
agree.  

        Section
2.4 Nonassignable Contracts Anything in this Agreement to the
contrary notwithstanding, this Agreement shall not constitute an agreement to assign any
claim or obligation imposed by Contract or Law or Governmental Authorization, or any
claim, right or benefit arising thereunder or resulting therefrom, if the Asset Purchase
would be deemed an attempted assignment thereof without the required consent of a third
party thereto or Governmental Authority, as the case may be, and would constitute a
breach thereof or in any way affect the rights of Seller or Buyer thereunder. If such
consent is not obtained, or if the consummation of the Asset Purchase would affect the
rights of Seller thereunder so that Buyer would not in fact receive the benefit of all
such rights, Seller shall cooperate with Buyer in any arrangement designed to provide for
the benefits thereof to Buyer, including subcontracting, sublicensing or subleasing to
Buyer or enforcement for the benefit of Buyer of any and all rights of Seller against a
third party thereto arising out of the breach or cancellation by such third party or
otherwise; and any assumption by Buyer of obligations thereunder whether by operation of
Law or otherwise in connection with the Asset Purchase which shall require the consent or
approval of any third party shall be made subject to such consent or approval being
obtained.  

Page 7 of 32

ARTICLE III 

Representations and
Warranties of Seller  

        Seller
hereby represents and warrants to Buyer as follows: 

        Section
3.1 Incorporation; Authorization; Capitalization; Etc.  

        (a)              Seller
is an Israeli corporation. Seller is duly organized and validly existing,           and
qualified to transact business in each jurisdiction in which the nature of
          property owned or leased by Seller or the conduct of its business requires it
to           be so qualified, except where the failure to be in good standing or to be
duly           qualified to transact business, does not have a material Adverse Affect on
the           Acquired Assets.  

        (b)              Seller
has all requisite power and authority (corporate and other) to own the           Acquired
Assets, to execute and deliver this Agreement and to consummate the
          transactions contemplated hereby. The execution and delivery of the Transaction
          Documents and the consummation of the transactions contemplated thereby have
          been duly and validly authorized by all necessary corporate proceedings on the
          part of Seller. The execution, delivery and performance of this Agreement and
          the consummation of the transactions contemplated hereby will not (i) violate
          any provision of Seller’s Articles of Association, or (ii) violate any
          provision of, or be an event that is (or with the giving of notice or the
          passage of time will result in) a violation of, or result in the acceleration
of           or entitle any Person to accelerate (whether after the giving of notice or
lapse           of time or both) any obligation under, or result in the imposition of any
Lien           upon (except such Liens as do not interfere with current use of) any of
the           Acquired Assets pursuant to, any Contract or Order to which Seller is a
party or           by which it is bound that, in the case of clause (ii), would,
reasonably           expected to have a material Adverse Effect on the Acquired Assets.
This           Agreement has been duly executed and delivered by Seller, and, assuming
the due           execution hereof by Buyer, this Agreement constitutes the legal, valid
and           binding obligation of Seller, enforceable against Seller in accordance with
its           terms.  

        Section
3.2 Title to Assets Except as set forth in Part 3.2 of the
Disclosure Schedule, Seller owns and has good title to the Acquired Assets, free and
clear of all Liens, and Seller will deliver the same to Buyer at the Closing, free and
clear of all Liens. Except as set forth in Part 3.2 of the Disclosure Schedule, the
Acquired Assets collectively constitute all of the properties, rights, Government
Authorizations, interests and other tangible and intangible assets employed or relied
upon by Seller to conduct the Acquired Business as conducted and as proposed to be
conducted.  

        Section
3.3 Reserved  

        Section
3.4 Compliance with Laws (a) Except as set forth in Part 3.4 of
the Disclosure Schedule and except for violations or failures, if any, that do not have a
material Adverse Effect: (a) Seller is in material compliance with each Law that is
applicable to the Acquired Business or to Seller’s ownership or use of any of the
Acquired Assets; and (b) Seller has not received any notice in writing or, to its
knowledge, otherwise from any Governmental Authority regarding any actual or alleged
violation of, or failure to comply with, any Law that is applicable to the Acquired
Business or to Seller’s ownership or use of any of the Acquired Assets. This Section
does not relate to employee benefit matters to which Section 3.17 is applicable.  

Page 8 of 32

        Section
3.5 Consents, Approvals, Other Authorizations Except as set forth
in this Agreement, no filing with, notice to or authorization, consent or approval of,
any Governmental Authority is required to be made, filed, given or obtained by Seller or
any of its Affiliates, in connection with the consummation of the Asset Purchase, except
as set forth in Part 3.5 of the Disclosure Schedule and except for those that the failure
to make, file, give or obtain which are not expected to have a material Adverse Effect on
the Acquired Assets. There is no material Governmental Authorization required of Seller
that is required and that it has not obtained in connection with its conduct of the
Acquired Business as conducted.  

        Section
3.6 Insurance Seller is adequately insured or has been
self-insured against all risks and liabilities with respect to the Acquired Assets. No
insurance policies or benefits thereunder are included in the Acquired Assets.  

        Section
3.7 Machines Seller has provided Buyer with all existing
documentations, drawings, records, instructions, manuals and other information in writing
in connection with the Machines, sufficient for the assembly, construction and
maintenance of the Machines by a third party without prior experience with the assembly,
construction and maintenance of such machines.  

        Section
3.8 Reserved.  

        Section
3.9 Customers; Distributors Seller has not, to its knowledge, received
any notice in writing from any customer that is a party to SuperCom Contract or anyone
else who is considered a significant customer in connection with the Acquired Assets
stating its intent to terminate or significantly reduce its use under SuperCom Contract
or the Acquired Assets. Included in the SuperCom Contracts are all Contracts into which
Seller has entered providing for the license and distribution of the SuperCom Software to
customers.  

For purposes of this section 3.9, a
“significant” customer means a customer that generates to Seller a yearly income
that exceeds U.S. $ 150,000. 

        Section
3.10 Inventory Except as scheduled in Part 3.10 of the Disclosure
Schedule, the inventory scheduled in Part 1.1(a) of the Disclosure Schedule is of such
quality and quantity as to be usable and saleable by Seller in the Ordinary Course of
Business.  

        Section
3.11 Equipment, Etc. Except as scheduled in Part 3.11 of the Disclosure
Schedule, the Equipment scheduled in Part 1.1(b): (i) is structurally sound, free of
material defects and deficiencies and in good repair (ordinary wear and tear excepted);
and (ii) is adequate for the uses to which it is being put by Seller.  

        Section
3.12 Real Property Seller does not own or hold under lease any real
property or interest therein, except for the Facility, the primary use of which is to
support the Acquired Business. With respect to the Lease: (i) the Lease is in full force
and effect; (ii) Landlord (as defined in the Lease) is not in default or breach of any of
Landlord’s material obligations under the Lease and Seller has no claims against
Landlord under the Lease; (iii) no agreements exist which modify, surrender or rescind
the Lease or affect the premises, by and between Seller and Buyer; (iv) the Annual Base
Rent (as defined in the Lease) and all additional rent due until the Closing Date have
been or shall be paid through and including the Closing Date; and (v) Seller has not
assigned, encumbered, pledged or mortgaged in any way whatsoever the leasehold interest
of Seller thereby assigned.  

Page 9 of 32

        Section
3.13 Intellectual Property  

        (a)              Part
3.13 of the Disclosure Schedule lists all patents, patent applications,
          registered trademarks and applications thereof, registered servicemarks and
          applications therefore registered maskworks and application therefore, and
          registered copyrights and applications therefore that (i) are owned by Seller
as           of the date of this Agreement, and (ii) are used or held for use in the
conduct           of the Acquired Business as conducted by Seller as of the date of this
Agreement           and as proposed to be conducted (“SuperCom Intellectual Property”).  

        (b)              Without
derogating from the foregoing in this Agreement, except as set forth in           Part
3.13(b) of the Disclosure Schedule, there are, as of the date of this
          Agreement, no restrictions on Seller’s right to assign the SuperCom
          Intellectual Property which Seller is required to assign to Buyer pursuant to
          this Agreement free and clear of all Liens.  

        (c)              Except
as otherwise set forth in Part 3.13(c) of the Disclosure Schedule and           except
for any claims which have been previously resolved and are no longer
          outstanding or which were made more than four (4) years prior to the date of
          this Agreement and which have not been subsequently pursued, to Seller’s
          knowledge, as of the date hereof, Seller has not received any written claim
from           any third party alleging infringement of said third party’s
Intellectual           Property which is based on the use of the SuperCom Intellectual
Property in           connection with the conduct of the Acquired Business and which
would reasonably           be expected to have a material Adverse Effect on the Acquired
Business as           conducted by Seller as of the date hereof and as Seller may be
required to           conduct pursuant to the Potential Projects (as defined in the
Service and Supply           Agreement).  

        (d)              Upon
Closing, Buyer shall have the same rights as possessed by the Seller as of           the
date hereof to use, hold for use or otherwise exploit, to the fullest extent
          permitted by law, all SuperCom Intellectual Property.  

        (e)              To
the Seller’s knowledge, the use of the SuperCom Intellectual Property in
          the conduct of the Acquired Business as conducted as of the date hereof and as
          proposed to be conducted does not infringe any enforceable patent where such
          infringement would reasonably be expected to have an Adverse Effect on the
          Acquired Business and Seller has not received any notice of such infringement.  

        (f)     Except
as set forth on Part 3.13(f) of the Disclosure Schedule and except for           claims
that have previously been resolved or that were made more than four (4)           years
prior to the date of this Agreement and were not subsequently pursued           during
the four (4) year period prior to the date of this Agreement, Seller has           not
made any written claim to any third party alleging infringement of SuperCom
          Intellectual Property, where such infringement would reasonably be expected to
          have an Adverse Effect on the Acquired Business as conducted by Seller as of
the           date hereof.  

        (g)              Except
as set forth on Part 3.13(f) of the Disclosure Schedule, there is no           action,
suit or proceeding pending and served or, to Seller’s knowledge,
          threatened in writing which challenges the validity, enforceability or
ownership           of any SuperCom Intellectual Property, .  

Page 10 of 32

        (h)              No
portion of SuperCom Intellectual Property and SuperCom Software is
          subject to any open source license that requires disclosure of any source code
          included in or used in connection with the generation of SuperCom
          Intellectual Property and the SuperCom Software as a result of any
          distribution thereof. To the extent that any portion of SuperCom Software
          includes software that was licensed from a third party pursuant to a certain
          license, Seller is in compliance with all material terms and condition of such
          license. The execution, delivery and performance of this Agreement will not
          result in the breach of, or create on behalf of any third party the right to
          terminate or modify, any material license, sublicense or other agreement
          relating to any SuperCom Software or any SuperCom Intellectual Property.  

        (i)              To
Seller’s knowledge, the Intellectual Property assigned to Buyer pursuant
          to this Agreement constitutes all Intellectual Property used in connection with
          the Acquired Business as conducted prior to and until the Closing Date, and as
          proposed to be conducted at the Closing Date that (i) is owned by Seller
as           of the date of this Agreement, (ii) is used or has application in the
          Acquired Business as conducted by Seller as of the date of this Agreement and
as           proposed to be conducted, provided, however, that, within two years of the
          Closing Date, if either Seller or Buyer shall discover and identify any
          Intellectual Property owned by Seller at Closing, which has any application to
          the Acquired Business as it is conducted on the Closing Date or proposed to be
          conducted at such time, then Seller shall amend the list set forth in Part 3.13
          of the Disclosure Schedule to include such Intellectual Property and shall take
          all necessary actions to assign such Intellectual Property. The parties further
          agree that within two years of the Closing Date, if Seller or Buyer shall
          discover and identify any Intellectual Property owned by Seller at Closing,
          which has any application to the Acquired Business as it is conducted on the
          Closing Date or proposed to by conducted at such time and such Intellectual
          Property also has been used within or has application to Other Seller
          Businesses, Seller shall grant to Buyer a non-exclusive, royalty-free license
          with a right to sublicense (and in a case of a merger, consolidation or sale of
          substantially all the assets of Buyer, the right to transfer) such Intellectual
          Property solely for use in connection with the Acquired Assets or Acquired
          Business.  

        (j)              Except
as set forth in Part 3.13(j) of the Disclosure Schedule, to Seller’s
          knowledge, it has not, prior to the date hereof, materially infringed upon any
          copyrighted material or breached any confidentiality obligation to any third
          party with respect to any trade secrets which copyrighted material or trade
          secret is incorporated in the SuperCom Software as of the date hereof exists
and           where such infringement or breach shall have a material Adverse Effect on
the           Acquired Business.  

        (k)              Except
as set forth in Part 3.13(k) of the Disclosure Schedule, (i) the source           code to
SuperCom Software has not been disclosed to any third party and/or (ii)           the
Seller is not subject to any obligation to disclose such source code           pursuant
to any source code escrow or other agreements.  

        Section
3.14 Contracts 

        (a)              Part
1.1(d) of the Disclosure Schedule provides an accurate list of each           material
Contract used primarily in support of or furtherance of the Acquired           Business.
Seller has delivered to Buyer accurate and complete copies of all           SuperCom
Contracts identified in Part 1.1(d) of the Disclosure Schedule,           including all
amendments thereto and. Each SuperCom Contract is in full force           and effect.  

Page 11 of 32

        (b)              Except
as set forth in Part 3.14(b) of the Disclosure Schedule or as would not           result
in a material Adverse Effect: (i) to Seller’s knowledge, no Person           has
violated or breached, or declared or committed any material default under,           any
SuperCom Contract; (ii) no event has occurred, and no circumstance or           condition
exists (including the consummation of the transactions set forth in           the
Agreement), that might (with or without notice or lapse of time) (A) result,           to
Seller’s knowledge, in a material violation or material breach of any of
          the provisions of any SuperCom Contract by either Seller or any other Person
who           is a party to such SuperCom Contract, (B) give any obligee under a SuperCom
          Contract the right to accelerate the maturity or performance of any SuperCom
          Contract, or (C) give any obligee under a SuperCom Contract the right to
cancel,           terminate or modify any SuperCom Contract; (iii) Seller has not
received any           notice or other communication (in writing) regarding any actual,
alleged,           possible or potential violation or breach of, or default under, any
SuperCom           Contract; and (iv) Seller has not waived any material right under any
SuperCom           Contract.  

        (c)              Part
3.14(c) of the Disclosure Schedule lists all material ongoing support and
          maintenance obligations of Seller, not otherwise reflected in the SuperCom
          Contracts, in connection with the SuperCom Software.  

        Section
3.15 Liabilities Seller has no Liabilities constituting Assumed
Liabilities, except those scheduled in Part 1.2 of the Disclosure Schedule or obligations
under the SuperCom Contracts that arise after the Closing Date (except for such
obligations thereunder that are not ascertainable by reference to such Contracts).  

        Section
3.16 Reserved 

        Section
3.17 Employee and Labor Matters 

        (a)              Part
3.17 of the Disclosure Schedule sets forth all employees of Seller engaged
          directly or indirectly in the Acquired Business (the “Key
          Employees”, and all such Key Employees agreeing to offer of employment
          from Buyer shall be referred to as (“Assumed Employees”)) and
          with respect to each such Key Employee lists: (i) the name and title of such
          employee; (ii) the aggregate NIS amounts of the compensation (including wages,
          salary, commissions, other benefits such as bonuses, car, phone, etc.) received
          by such employee from Seller with respect to services performed in the twelve
          month period prior to the Closing Date. Seller is current on all obligations to
          the Key Employees. Except as disclosed on Part 3.17(a) of the Disclosure
          Schedule, the Key Employees constitute substantially all the employees employed
          by Seller for the purpose of conducting the Acquired Business as of the date
          hereof. Except as set forth in Part 3.17 of the Disclosure Schedule, Seller is
          not a party to or bound by, any employment contract or any union contract,
          collective bargaining agreement or similar contract related to the Acquired
          Business, other than those with general application to all employees in Israel.  

        (b)              No
Key Employee, to Seller’s knowledge, has received within the six months
          prior to the date hereof, an offer to join a business that may be competitive
          with the Acquired Business. To Seller’s knowledge, no employee of Seller
is           a party to or is bound by any confidentiality agreement, non-competition
          agreement or other Contract (with any Person) that prevents the performance by
          such Key Employee of any of his material duties or responsibilities as an
          employee of Seller related to the Acquired Business.  

        (c)              Part
3.17(c) of the Disclosure Schedule sets forth the name of, and a general
          description of the services performed by each independent contractor to whom
          Seller has made any payment in excess of $50,000 since June 30, 2004,
for           the purpose of conducting the Acquired Business.  

Page 12 of 32

        Section
3.18 Deleted.  

        Section
3.19 Sale of Products Each product that has been sold by Seller in
connection with the Acquired Business to any Person conformed and complied in all
material respects with the terms and requirements of any applicable warranty or other
Contract. No product manufactured or sold by Seller in connection with the Acquired
Business has been the subject of any recall or other similar action; and no event has
occurred, and no condition or circumstance exists, that, to Seller’s knowledge,
might (with or without notice or lapse of time) give rise to or serve as a basis for any
such recall or other similar action relating to any such product.  

        Section
3.20 Performance Of Services All services that have been performed on
behalf of Seller for the purpose of supporting or furthering the Acquired Business were,
to Seller’s knowledge, performed in material compliance with the Contracts
applicable thereto.  

        Section
3.21 Actions; Orders Except as set forth in Part 3.21 of the Disclosure
Schedule, there is no pending Action, and, to Seller’s knowledge, no Person has
threatened (in writing) to commence any Action: (i) that involves the Acquired Business
or that otherwise relates to or would materially Adversely Affect the Acquired Business
or the Acquired Assets (whether or not Seller is named as a party thereto); or (ii) that
challenges, or that may have the effect of preventing, delaying, making illegal or
otherwise interfering with, any of the transactions contemplated hereby. Seller has
delivered to Buyer accurate and complete copies of all pleadings, correspondence and
other written materials possessed by Seller that relate to the Actions identified in Part
3.21 of the Disclosure Schedule. Except as identified in Part 3.21 of the Disclosure
Schedule, there is no Order to which the Acquired Business, or any of the Acquired Assets
owned or used by Seller, is subject. To the knowledge of Seller, no Key Employee is
subject to any Order that materially prohibits such Key Employee from engaging in or
continuing for Buyer any practice, conduct or activity currently engaged in for Seller.
This Section does not relate to Intellectual Property matters, as to which Section 3.13
is applicable.  

        Section
3.22 Non-Contravention; Consents (a) Except as set forth in Part
3.22 of the Disclosure Schedule or except as would not result in an Adverse Effect,
neither the execution and delivery of any of the Transaction Documents, nor the
consummation or performance of any of the transactions contemplated hereby, will directly
or indirectly (with or without notice or lapse of time):  

	 	        (i)              give
any Governmental Authority or other Person the right to prevent or delay           the
consummation of any of the transactions contemplated hereby;  

	 	        (ii)              contravene,
conflict with or result in a violation of any of the terms or           requirements of,
or give any Governmental Authority the right to revoke,           withdraw, suspend,
cancel, terminate or modify, any Governmental Authorization           that is to be
included in the Acquired Assets;  

	 	        (iii)              constitute
a material violation or breach of, or result in a material default           under, any
provision of any Contract that is to be included in the Acquired           Assets;  

Page 13 of 32

	 	        (iv)              result
in the imposition or creation of any Lien upon or with respect to any of           the
Acquired Assets; and  

	 	        (v)              give
any obligee the right to declare a default under, or to cancel, terminate           or
modify, any SuperCom Contract, or to accelerate the maturity or performance
          thereof.  

         (b)       
           Except as set forth in Part 3.5 or Part 3.22 of the Disclosure Schedule
          Seller is not or will not be required, to make any filing with or give any
          notice to, or to obtain any consent from, any Person in connection with the
          execution and delivery of any of the Transaction Documents or the consummation
          or performance of any of the transactions contemplated hereby. 

        Section
3.23 Investment Representations Seller understands that the Restricted
Shares have not been registered under the Securities Act. Seller also understand that the
Restricted Shares are being offered and sold pursuant to an exemption from registration
contained in the Securities Act based in part upon Seller’s representations
contained in the Agreement. Seller hereby represents and warrants as follows:  

        (a)              It
is acquiring the Restricted Shares for its own account for investment only,           and
not with a view towards their distribution.  

        (b)              It
represents that by reason of its, or of its management’s, business or
          financial experience, it has the capacity to protect its own interests in
          connection with the transactions contemplated hereunder. Further, it is aware
of           no publication of any advertisement in connection with the transactions
          contemplated hereunder.  

        (c)              It
represents that it is an accredited investor within the meaning of Regulation           D
under the Securities Act.  

        (d)              It
has had the opportunity to ask questions of and receive answers from, Buyer           and
its management regarding the terms and conditions of its investment in Buyer
          and also conducted an independent due diligence by a representative thereof.  

        (e)              It
acknowledges and agrees that the Restricted Shares must be held indefinitely
          unless it is subsequently registered under the Securities Act or an exemption
          from such registration is available. It has been advised or is aware of the
          provisions of Rule 144 promulgated under the Securities Act as in effect from
          time to time, which permits limited resale of shares purchased in a private
          placement subject to the satisfaction of certain conditions, including, among
          other things: the availability of certain current public information about
          Buyer, the resale occurring following the required holding period under Rule
144           and the number of shares being sold during any three-month period not
exceeding           specified limitations.  

        (f)              The
Seller is not a “U.S. person”, as such term is defined in           Regulation
S, his principal address is outside the United States, and it was           located
outside the United States at the time any offer to buy the Restricted           Shares
was made to the Seller and at the time that this agreement was entered           into by
the Seller.  

Page 14 of 32

        (g)              At
no time was the Seller presented with or solicited by any leaflet, public
          promotional meeting, newspaper or magazine article, radio or television
          advertisement or any other form of general advertising or general solicitation
          concerning the Restricted Shares.  

        (h)              The
Seller represents that it is not a broker or dealer, nor is it an affiliate           of
any broker or dealer. For the purpose of this Sub-Section, the term           “dealer” means
any person who engages either for all or part of his           time, directly or
indirectly, as agent, broker, or principal, in the business of           offering,
buying, selling, or otherwise dealing or trading in securities issued           by
another person; and the term “broker” means any person engaged in           the
business of effecting transactions in securities for the account of others.  

        (i)              The
Seller acknowledges and agrees that the certificate representing the           Restricted
Shares shall bear a restrictive legend as the Buyer’s transfer           agent may
determine is necessary or appropriate under applicable securities           laws,
substantially to the effect of the following:  

	 	
“The
securities represented by this certificate have not been registered under the Securities
Act of 1933 and may not be transferred, sold or otherwise disposed of in the absence of an
effective registration statement with respect to the shares evidenced by this certificate,
filed and made effective under the Securities Act of 1933, or an opinion of counsel
satisfactory to On Track Innovations Ltd. to the effect that registration under such Act
is not required.” 

        (j)              The
Seller will not register any transfer of the Restricted Shares not made in
          accordance with the provisions of Regulation S, pursuant to registration under
          the Securities Act, or pursuant to an available exemption from registration.  

        Section
3.24 Restrictions on Short Sales Seller represents, warrants and
covenants that neither it nor any Affiliate thereof is engaged in (i) any “short
sales”(as such term is defined in Rule 200 promulgated under the Exchange Act) of
the Restricted Shares, including, without limitation, the maintaining of any short
position with respect to, establishing or maintaining a “put equivalent position” (within
the meaning of Rule 16a-1(h) under the Exchange Act) with respect to, entering into any
swap, derivative transaction or other arrangement (whether any such transaction is to be
settled by delivery of Ordinary Shares, other securities, cash or other consideration)
that transfers to another, in whole or in part, any economic consequences or ownership,
or otherwise dispose of, any of the Restricted Shares by such purchaser or (ii) any
hedging transaction which establishes a net short position with respect to the Restricted
Shares.  

        Section
3.25 Accuracy of Information Furnished; Full Disclosure All
representation of Seller herein or in any of the Disclosure Schedules are true, correct
and complete in all material respects. Such information states all material facts
required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which such statements are made, true, correct and complete in all
material respects. All facts and information with regard to the condition of the Acquired
Assets, the Assumed Assets and Acquired Business that would reasonably be considered as
material for disclosure in connection with the transactions set forth in this Agreement
have been disclosed to Buyer. Neither this Agreement nor any ancillary agreement or any
certificate made or delivered in connection herewith or therewith contains any untrue
statement of a material fact or omits to state a material fact necessary to make the
statements herein or therein not misleading, in view of the circumstances in which they
were made.  

Page 15 of 32

        Section
3.26 Schedules 

        (a)              Any
matter set forth in any Part of the Disclosure Schedule shall be deemed to           be
referred to all other Parts of the Disclosure Schedule to which such matter
          would relate.  

        (b)              The
inclusion of any item on any Part of the Disclosure Schedule shall not be
          construed as an indication that such item is material in any respect or as a
          representation or warranty with respect to such item.  

ARTICLE IV 

Representations and
Warranties of Buyer  

        Buyer
hereby represents and warrants to Seller as follows: 

        Section
4.1 Incorporation; Authorization; Etc. Buyer is a corporation duly
organized, and validly existing under the laws of the State of Israel. Buyer has full
corporate power to execute and deliver this Agreement, to perform its obligations
hereunder and to consummate the transactions contemplated hereby. The execution and
delivery of the Transaction Documents, the performance of Buyer’s obligations
hereunder, including issuance of the Restricted Shares to Seller, and thereunder and the
consummation of the transactions contemplated hereby and thereby at the Closing, shall
have been duly and validly authorized by Buyer and no other corporate proceedings or
actions on the part of Buyer, its Board of Directors or its shareholders shall be
necessary at the Closing. This Agreement has been duly executed and delivered by Buyer,
and, assuming the due execution hereof by Seller, this Agreement constitutes the legal,
valid and binding obligation of Buyer, enforceable against Buyer in accordance with its
terms. An updated and complete copy of the Memorandum and Articles of Association of
Buyer was provided to Seller prior to the date hereof.  

Buyer has all requisite corporate
power and authority to own, lease and operate its properties and to carry on its business
as now being conducted, the failure of which does not have a material Adverse Effect on
Buyer. Each of the Buyer and its subsidiaries is duly qualified or licensed to carry on
its business as it is now being conducted, and is qualified to do business in each
jurisdiction where the character of its properties owned or leased or the nature of its
activities makes such qualification necessary, except for failures to be so qualified that
would not have a material Adverse Effect. 

        Section
4.2 Issuance of Restricted Shares The Restricted Shares issued to Seller pursuant to
this Agreement at the Closing against the transfer of the Acquired Assets and the
assignment of the Assumed Liabilities, shall be duly authorized and validly issued, fully
paid, nonassessable and free of any preemptive rights, liens, restrictions, encumbrances
or third party rights (except for restrictions on transfer set forth in the Transaction
Documents or imposed by applicable securities laws), and will have the rights,
preferences, privileges, and restrictions set forth in Buyer’s Articles of
Association and this Agreement.  

Page 16 of 32

        Section
4.3 Capitalization  

        (a)              The
authorized share capital of Buyer consists of 50,000,000 Ordinary Shares of
          which 15,556,008 Ordinary Shares are issued and outstanding on the date hereof.
          All of such issued and outstanding shares are validly issued, fully paid and
          nonassessable.  No Ordinary Shares are owned by the Buyer or any of its
subsidiaries.  

        (b)              As
of the date hereof, Buyer has reserved an adequate number of Ordinary Shares
          for issuance upon exercise of outstanding options or other securities
          convertible or exchangeable into Ordinary Shares (together, the           “Options”),
the total number of such Options as of the date of           this Agreement is set forth
in Schedule 4.3(b). Other than the 2001 Share           Option Plan, the 1995
Share Option Plan and the 2001 Employees Share Option Plan           (collectively, the
“Option Plans”), Buyer has no other plan           which provides for
the grant of options, warrants or rights to purchase Ordinary           Shares, share
appreciation or similar rights or share awards. Schedule           4.3(b) sets
forth the following information with respect to each Option           outstanding as of
the date of the Agreement: (i) the number of shares subject to           such Option;
(ii) the exercise price; Except as set forth above, there are not           now, and at
the Closing there will not be any claims, rights (including without           limitation
any share appreciation or similar rights), convertible securities or           other
agreements or commitments of any character obligating the Buyer to issue,
          transfer or sell any additional securities, other than Ordinary Shares issued
          after the date hereof upon the exercise of Options outstanding on the date
          hereof, and options and warrants issued to employees, consultants and service
          providers between the date hereof and the Closing.  

        Section
4.4 Commission Filings; Financial Statements 

        (a)              Buyer
has filed all forms, reports, schedules, statements and other documents
          required to be filed by it since January 1, 2005, to the date of this Agreement
          with the SEC (all such filings collectively, as supplemented and amended since
          the time of the filing, the “Buyer SEC Reports”) all of which
          complied, when filed, in all material respects with all applicable requirements
          of the Exchange Act, and the rules and regulations promulgated thereunder, as
          the case may be. Buyer has made available to Seller a true and correct copy of
          each of the Buyer SEC Reports. The audited consolidated financial statements
and           unaudited consolidated financial statements of Buyer included or
incorporated by           reference in the Buyer SEC Reports, (i) comply as to form, in
all material           respects, with the published rules and regulations of the SEC,
(ii) have been           prepared in accordance with United States generally accepted
accounting           principles applied on a consistent basis during the periods involved
(except as           may be indicated in the notes thereto) and (iii) present fairly, in
all material           respects, the financial position and results of operations and
cash flows of the           Buyer and its subsidiaries on a consolidated basis at the
respective dates and           for the respective periods indicated (except, in the case
of interim financial           statements, for normal year-end adjustments and to which
hereby represented           based on Buyer’s best knowledge, and the absence of
notes). Without           derogating from the generality of the aforesaid, the Buyer’s
report on Form           20-F for the period ended December 31, 2005, a copy of which was
made available           to Seller, (i) has been prepared in compliance in all material
respects with all           applicable requirements of the Exchange Act and (ii) does not
contain any untrue           statements of a material fact or omit to state any material
fact required to be           stated therein or necessary in order to make the statements
therein, in light of           the circumstance under which they were made, not
misleading.  

Page 17 of 32

        (b)              Since
December 31, 2005, except as disclosed in the Buyer SEC Reports, there has           been
no material Adverse change in the business, operations, properties,           prospects,
assets or condition of Buyer, and to Buyer’s knowledge, no event           has
occurred or circumstances exist that shall result in a material Adverse           Effect.  

        Section
4.5 Nasdaq Listing Matters The Ordinary Shares are registered pursuant
to Section 12(b) of the Exchange Act and are listed on the Nasdaq under the ticker symbol
“OTIV.” Buyer has not received any notice that it is not currently in
compliance with the listing or maintenance requirements of the Nasdaq. The issuance and
sale of the Restricted Shares under this Agreement do not contravene the rules and
regulations of Nasdaq. Buyer has taken no action and has no present intent to take any
action, designed to, or likely to have the effect of, terminating the registration of the
Ordinary Shares under the Exchange Act or de-listing the Ordinary Shares from Nasdaq.  

        Section
4.6 No Conflict, Breach, Violation or Default; Required Filings and Consents (a)
The execution, delivery and performance of the Transaction Documents by Buyer and the
issuance and transfer of the Restricted Shares will not conflict with or result in a
material breach or material violation of any of the terms and provisions of, or
constitute a material default under (i) Buyer’s Articles or Memorandum of
Association, as in effect on the date hereof (true and complete copies of which have been
made available to Seller), or (ii)(A) any statute, rule, regulation or order of any
governmental agency or body or any court, domestic or foreign, having jurisdiction over
Buyer, or any of its assets or properties, or (B) any agreement or instrument to which
Buyer is a party or by which Buyer is bound or to which any of its assets or properties
is subject, where the failure to comply under (i) and (ii) in this Section 4.6, shall
have a material Adverse Effect on Buyer.  

Page 18 of 32

        (b)              Except
as set forth in this Agreement, the execution and delivery of this           Agreement by
Buyer does not, and the performance of its obligations hereunder           will not,
require any consent, approval, authorization or permit of, or filing           with or
notification to, any Governmental Authority, except (i) for applicable
          requirements, if any, of the Securities Act, the Exchange Act, and the rules
and           regulations thereunder, applicable applications with Nasdaq and appropriate
          documents with the relevant authorities of other jurisdictions in which Buyer
is           qualified to do business, and (ii) where the failure to obtain such
consents,           approvals, authorizations or permits, or to make such filings or
notifications,           would not, reasonably be expected to have a material Adverse
Effect on Buyer, or           prevent the parties hereto from performing their
obligations under the           Transaction Documents.  

        Section
4.7 Compliance. Buyer is in material compliance with, and is not in
material violation of, any applicable Laws with respect to the conduct of its business,
or the ownership or operation of its business, except for failures to comply or
violations which, shall not have a material Adverse Effect on Buyer. Buyer is not in a
material default or violation of any term, condition or provision of its Articles or
Memorandum of Association. No written notice of a material non-compliance with any
applicable Laws has been received by Buyer during the 12 month period prior to the date
of this Agreement.  

ARTICLE V 

Covenants of Seller
and Buyer  

        Section
5.1 Confidentiality 

        (a)              Any
information provided by Buyer or its representatives to Seller or its
          representatives pursuant to this Agreement and in the conduct of their due
          diligence and other actions related to the preparation of this Agreement shall
          be held by Seller and its representatives in accordance with, and shall be
          subject to the terms of, the Confidentiality Agreement dated August 11, 2006 by
          and between Seller and Buyer, which is hereby incorporated in this Agreement as
          though fully set forth herein.  

        (b)              Any
information provided by Seller or its representatives to Buyer or its
          representatives pursuant to this Agreement and in the conduct of their due
          diligence and other actions related to the preparation of this Agreement and is
          not part of the Acquired Assets or the Assumed Liabilities, shall be held by
          Seller and its representatives in accordance with, and shall be subject to the
          terms of, the Confidentiality Agreement dated August 11 2006 by and between
          Seller and Buyer, which is hereby incorporated in this Agreement as though
fully           set forth herein.  

        Section
5.2 Best Efforts; Obtaining Consents In case at any time after the date
hereof, any further action is necessary or desirable (i) to obtain necessary waivers,
consents and approvals from other parties to material Contracts, (ii) to obtain consents,
approvals and authorizations that are required to be obtained under any Law, (iii) to
lift or rescind any Order Adversely Affecting the Asset Purchase, or (iv) to effect
necessary registrations and filings and submissions of information requested by
Governmental Authorities (it being understood that such efforts shall not include any
requirement of Seller to expend material sums of money or grant any material financial or
other accommodation), Seller and Buyer shall exercise best efforts to take all such
necessary action.  

Page 19 of 32

        Section
5.3 Further Assurances 

        (a)              Seller
and Buyer agree that, from time to time, whether before, at or after the
          Closing Date, each of them will execute and deliver such further instruments of
          conveyance and transfer and take such other action as may be reasonably
required           or desirable to carry out the purposes and intent of this Agreement,
including           (i) allocating rights and obligations under Contracts and other
arrangements, if           any, relating to the Acquired Assets or the Assumed
Liabilities, (ii)           determining whether to enter into any service or other
sharing agreements on a           mutually acceptable arm’s-length basis that may be
necessary to assure a           smooth and orderly transition, and (iii) each of the
parties hereto shall           execute such documents and other instruments and take such
further actions as           may be reasonably required to carry out the provisions
hereof.  

        (b)              Notwithstanding
anything to the contrary herein, immediately after the execution           of this
Agreement, Seller shall allow the Buyer access to all customers’          files,
production files, components files, and all other necessary           documentations and
information required by Buyer.  

        Section
5.4 Preservation of Acquired Assets 

        (a)              From
the date hereof to the Closing Date, subject to the terms and conditions of
          this Agreement, Seller shall use reasonable efforts (i) to preserve the
Acquired           Assets intact, and (ii) to preserve the good will of customers and
others having           material business relations with Seller pursuant to the SuperCom
Contracts.           Notwithstanding the foregoing, nothing in this Section 5.4 or
otherwise shall be           construed to make Seller responsible in any respect for the
cancellation of any           Contracts or for any customer’s discontinuing its
business with Buyer or           Seller. Notwithstanding the foregoing or any other
provision herein, neither           Seller nor Buyer shall be required to enter into any
Contract that it has not           expressly agreed to enter into hereunder; except
pursuant to Section 5.3 or           Section 5.8.  

        (b)              From
the date hereof to the Closing Date, Seller shall not take any action not           in
the Ordinary Course of Business, without Buyer’s prior written consent
          (which consent shall not be unreasonably withheld).  

        Without
derogating from the foregoing, Seller shall: 

	 	        (i)              Maintain
its corporate existence, pay its debts when due, pay or perform other
          obligations when due, and carry on its business in the usual, regular and
          ordinary course in a manner consistent with past practice and in accordance
with           the provisions of this Agreement and in compliance with all applicable
Laws,           Authorizations and Contracts.  

Page 20 of 32

	 	        (ii)              Use
its reasonable best efforts consistent with past practices and policies to           keep
available the services of its present employees and preserve its           relationships
with customers, suppliers, distributors, licensors, licensees, and           others
having business dealings with it, to the end that its goodwill and           ongoing
business be substantially unimpaired on the Closing Date.  

	 	        (iii)              Promptly
notify Buyer of any event or occurrence not in the Ordinary Course of           Business.  

        (c)              From
the date hereof to the Closing Date, Seller shall permit Buyer and its
          representatives, to visit and inspect the Buyer’s properties, to examine
          its books of account and records and to discuss the Buyer’s affairs, with
          its officers, all at such reasonable times as may be requested by Buyer and its
          representative.  

        Section
5.5 Public Announcements Seller and Buyer will consult with each other
before issuing, or permitting any agent or Affiliate to issue, any press releases or
otherwise making or permitting any agent or Affiliate to make, and, absent mutual
agreement, will not (and will not permit any agent or Affiliate to) issue any press
release or make any public statements with respect to this Agreement and the transactions
contemplated hereby, and, except as may be required by applicable law or any listing
agreement with any securities exchange, will not issue any such press release or make any
such public statement, unless the text of such statement shall have been agreed upon by
the parties.  

        Section
5.6 At any time following the Closing Date, upon Buyer’s demand, Seller shall
destroy copies and any documentation regarding the Acquired Assets.  

        Section
5.7 Insurance Buyer shall adequately insure the Acquired Assets and
maintain such insurance, against all risks and liabilities. Without derogating from the
aforesaid, Buyer shall insure the Acquired Assets in such degree of coverage that is not
less than the coverage obtained by Seller for the Acquired Assets.  

        Section
5.8 Employees, Employee Benefits and Other Transitional Matters 

        (a)              On
or prior to the Closing, Buyer shall have the right, but not the obligation,           to
offer employment to all the Key Employees, provided that Seller shall
          terminate, immediately prior to Closing, the employment of any employee who
          accepts such offer. Any such offer shall be at such salary or wage and benefit
          levels and on such other terms and conditions as Buyer shall in its sole
          discretion deem appropriate. From the date of this Agreement, Buyer may
          interview and conduct background investigations with respect to any Key
          Employee, and Seller will not take any action that would impede, hinder,
          interfere or otherwise compete with Buyer’s effort to hire any Key
          Employees and shall use its best efforts to cause such Key Employee to accept
          the Buyer’s offer. From the date of this Agreement, Seller shall provide
          Buyer access to such files, records and other materials relating to the Key
          Employees as is permitted by Law, including, without limitation, information
          relating to compensation and benefits. Buyer shall not assume responsibility
for           any Key Employee until such employee commences employment with Buyer. From
the           date of this Agreement, Seller shall not modify, amend or otherwise alter
any           non-competition or other similar restrictions with any Key Employee without
the           prior written consent of Buyer, and Seller shall not waive, and shall use
          commercially reasonable efforts to enforce, such non-competition or other
          restrictions in connection with any violation thereof. Seller hereby undertakes
          to release any Key Employee to which Buyer makes an offer of employment from
the           provisions of any non-competition or other similar restrictions in order to
          allow such Key Employee to accept such offer of Buyer. On or prior to Closing,
          Buyer shall have the right, but not the obligation, to offer to Key Employees
          bonuses or any other consideration that will be paid at such time as may be
          agreed between Buyer and such Key Employees for their assistance to Buyer in
          connection with effecting the transition of the Acquired Assets and the Assumed
          Liabilities to the Buyer.  

Page 21 of 32

The same provisions and undertakings
shall apply, mutatis mutandis, to the members of Seller’s advisory board. 

        (b)              Nothing
in the provision of this Section 5.9 shall create any third party           beneficiary
or other rights in any employee (including any beneficiary or           dependent
thereof) of Seller (whether or not a Key Employee) with respect to           continued
employment (or resumed employment) with Buyer or any of its           affiliates, and no
provision of this Section 5.9 shall create any such rights           with respect to any
benefits that may be provided, directly or indirectly, under           any employee plan
or benefit arrangement that may be established by Buyer or any           of its
affiliates.  

        Section
5.9 Non-competition 

        (a)              Seller
agrees that for a period beginning at the Closing and ending on the five           (5)
year anniversary of the Closing, it shall not  

	 	        (i)              engage,
either directly or indirectly, as a principal or for its own or           another’s
account, solely or jointly with others, or through any form of           ownership in
another entity or otherwise (other than by holding or having           ownership of up to
4.99% of the equity, interest or voting power in any publicly           traded company),
in any business that operates in the field of the Acquired           Business, except for
the activity related to the activities specified in sub           sections (i) and (ii)
under the definition of the Excluded Assets, and except           for the petroleum
business which competes with Buyer;  

	 	        (ii)              employ
or solicit or offer or induce or receive or accept the performance of           services
by any Assumed Employee; and  

In addition to the foregoing, Seller
will act in good faith and use best efforts, whenever required, to prevent an Adverse
impact on the business relationship between Buyer and any customer, suppliers,
distributors, licensors, licensees, and others having business dealings with Seller in
connection with the Acquired Business prior to the Closing Date. In any event where Seller
shall be approached by any customer, suppliers, distributors, licensors, licensees, and
others in connection to the Acquired Business, Seller shall advise Buyer of such approach
in writing and shall refer such Person or Entity to Buyer. 

Page 22 of 32

        (b)              Seller
shall use its best efforts to cause all of its directors, officers and
          employees to execute a similar undertaking set forth in subsection (a) above,
          towards Buyer.  

        (c)              Buyer
agrees that for a period beginning at the Closing and ending on the five           (5)
year anniversary of the Closing, it shall not:  

	 	        (i)              engage,
either directly or indirectly, as a principal or for its own or           another’s
account, solely or jointly with others, or through any form of           ownership in
another entity or otherwise (other than by holding or having           ownership of up to
4.99% of the equity, interest or voting power in any publicly           traded company),
in any activity related to the activities specified in sub           sections (i) and
(ii) under the definition of the Excluded Assets;  

	 	        (ii)              employ
or solicit or offer or induce the performance of services by any           employees of
the Seller which are not Assumed Employees.  

        (d)              Buyer
shall use its best efforts to cause all the Assumed Employees to execute a
          similar undertaking as set forth in subsection (c) above, towards Seller.  

        Section
5.10 Service and Supply Agreement At the Closing, Seller and Buyer
shall execute and deliver the Service and Supply Agreement.  

        Section
5.11 Registration Rights Agreement. At the Closing, Seller and Buyer
shall execute and deliver the Registration Rights Agreement.  

ARTICLE VI 

Tax Matters  

        Section
6.1 Tax Matters (a) Any transfer, documentary, sales, use or
other Taxes assessed upon or with respect to the transfer of the Acquired Assets to Buyer
and the assumption of the Assumed Liabilities thereby (except for V.A.T.) shall be the
responsibility of Seller; provided, however, that Buyer shall cooperate with Seller to
minimize any such Taxes.  

        (b)              V.A.T
levied on the sale of the Acquired Assets shall be paid by Buyer on the           date
due to be paid by Seller against a proper receipt (Heshbonit Mas) issued by
          Seller.  

Page 23 of 32

ARTICLE VII 

Conditions of
Buyer’s Obligation to Close  

        Buyer’s
obligation to consummate the Asset Purchase shall be subject to the satisfaction on or
prior to the Closing Date of all of the following conditions: 

        Section
7.1 Representations, Warranties and Covenants of Seller 

        (a)              The
representations and warranties of Seller contained in this Agreement shall           be
true and correct on and as of the Closing Date with the same effect as though
          such representations and warranties had been made on and as of such date
(except           for representations and warranties that speak as of a specific date or
time,           which need only be true and correct as of such date or time), in each
case,           whether or not such representations or warranties contain a qualification
as to           “Adverse Effect,” for such inaccuracies which have not had or
would           not reasonably be expected to have an Adverse Effect on the Acquired
Assets.  

        (b)              Seller
shall have performed in all material respects each obligation and           agreement and
shall have complied in all material respects with each covenant to           be performed
and complied with by it hereunder at or prior to the Closing (other           than Seller’s
covenants pursuant to Section 2.2(a) with respect to delivery           of documents of
transfer of the Acquired Assets at the Closing, which shall be           performed in all
respects).  

        (c)              Buyer
shall receive at or prior to the Closing a certificate as to the matters           set
forth in paragraphs (a) and (b), dated the Closing Date, and validly           executed
by an authorized officer of Seller on behalf of Seller.  

        Section
7.2 Filings; Consents; Waiting Periods All registrations, filings,
applications, notices, consents, approvals, orders, qualifications and waivers required
to be obtained or made as of the Closing Date shall have been filed, made or obtained,
except for such registrations, filings, notices, consents, approvals, orders,
qualifications and waivers the lack of which would not reasonably be expected to have an
Adverse Effect on the Acquired Assets.  

        Section
7.3 No Injunction At the Closing Date, there shall be no Order of any
nature of any Governmental Authority of competent jurisdiction that is in effect that
restrains or prohibits the consummation of all or any portion of the Asset Purchase, and
no Law shall have been enacted by any Governmental Authority which prevents consummation
of the Asset Purchase.  

        Section
7.4 Reserved 

        Section
7.5 Proxy Seller shall have executed and delivered to Buyer a proxy in
the form attached hereto as Exhibit D.  

        Section
7.6 Lock-Up Agreement Seller shall have executed and delivered to Buyer
the Lock-Up Agreement.  

        Section
7.7 Termination of Confidentiality and Proprietary Agreements with Assumed Employees
and Employment Agreement 

        (a)              Seller
shall have release any Buyer’s Assumed Employees from the provisions           of
any non-competition or other similar restrictions towards Seller.  

        (b)              Buyer
shall have entered into employment agreements with Buyer’s Assumed
          Employees.  

Page 24 of 32

        Section
7.8 Lease Agreement/Assignment Buyer shall have entered into a sublease
or assignment agreement with respect to the ground floor, on terms back-to-back to the
Seller’s existing lease agreement. The sublease or assignment will be valid until
December 31st 2007.  

        Section
7.9 Anti-Trust the approval of the anti trust commissioner, if required. 

        Section
7.10 Legal Opinion Seller shall have provided a legal
opinion of Yossi Avraham, Arad & Co., Law Offices in the form agreed by the parties.  

        Section
7.11 Shareholders Approval Buyer shall have obtained shareholders approval for
the transaction contemplated herein.  

        Section
7.12 Withholding at Source Seller shall provide Buyer a certificate of
exemption with regard to withholding at source of taxes otherwise withheld by Buyer in
connection with the payment of the consideration by Buyer pursuant to the terms of this
Agreement.  

ARTICLE VIII 

Conditions to
Seller’s Obligation to Close  

        Seller’s
obligation to consummate the Asset Purchase is subject to the satisfaction on or prior to
the Closing Date of all of the following conditions: 

        Section
8.1 Representations, Warranties and Covenants of Buyer 

        (a)              The
representations and warranties of Buyer contained in this Agreement shall be
          true and correct on and as of the Closing Date with the same effect as though
          such representations and warranties had been made on and as of such date
(except           for representations and warranties that speak as of a specific date or
time,           which need only be true and correct as of such date or time), in each
case,           whether or not such representations or warranties contain a qualification
as to           “Adverse Effect,” for such inaccuracies which have not had or
would           not reasonably be expected to have an Adverse Effect on Buyer.  

        (b)              Buyer
shall have performed in all material respects each obligation and           agreement and
shall have complied in all material respects with each covenant to           be performed
and complied with by it hereunder at or prior to the Closing.  

        (c)              Seller
shall receive at or prior to the Closing a certificate as to the matters           set
forth in paragraphs (a) and (b), dated the Closing Date, and validly           executed
by an executive officer of Buyer on behalf of Buyer.  

        Section
8.2 Filings; Consents; Waiting Periods All registrations, filings,
applications, notices, consents, approvals, orders, qualifications and waivers required
to be obtained or made as of the Closing Date shall have been filed, made or obtained,
except for such registrations, filings, notices, consents, approvals, orders,
qualifications and waivers the lack of which would not reasonably be expected to have an
Adverse Effect on Buyer.  

Page 25 of 32

        Section
8.3 No Injunction At the Closing Date, there shall be no Order of any
nature of any Governmental Authority of competent jurisdiction that is in effect that
restrains or prohibits the consummation of all or any portion of the Asset Purchase, and
no Law shall have been enacted by any Governmental Authority which prevents consummation
of the Asset Purchase.  

        Section
8.4 Service and Supply Buyer shall have executed and delivered to
Seller the Service and Supply Agreement.  

        Section
8.5 Registration Rights Agreement. Buyer shall have executed and
delivered to Seller the Registration Rights Agreement.  

        Section
8.6 Anti-Trust the approval of the anti trust commissioner, if
required.  

        Section
8.7 Loan Buyer, with Seller’s cooperation, hereby undertakes to cause a
loan in the principal amount of U.S.$ 2.5 Million (the “Loan”) to be
extended to Seller by a financial institution at the Closing. The terms of the loan shall
be as follows:  

        (a)
          The Loan will carry interest at the common rate for USD loans in Hapoalim Bank,
          Israel, for 18 months.  

        (b)
          The Loan will be secured by all the Restricted Shares and will be repaid
          (principal and interest) out of the first proceeds received from each sale of
          Restricted Shares sold by Seller, but not later than 18 months after the
Closing           Date.  

ARTICLE IX 

Survival;
Indemnification  

        Section
9.1 Survival of Representations And Covenants  

        (a)              The
representations, warranties, covenants and obligations of each party to this
          Agreement shall survive (without limitation): (i) the Closing and the sale of
          the Acquired Assets to Buyer and the assumption of the Assumed Liabilites; and
          (ii) the dissolution of either party to this Agreement. All of said
          representations, warranties, covenants and obligations shall remain in full
          force and effect and shall survive for a period of twelve months from the
          Closing Date (“Indemnification Period”).  

        (b)              The
representations, warranties, covenants and obligations of Seller, and the
          rights and remedies that may be exercised by Buyer, shall not be limited or
          otherwise affected by or as a result of any information furnished to, or any
          investigation made by or any knowledge of Buyer.  

        (c)              The
representations, warranties, covenants and obligations of Buyer, and the           rights
and remedies that may be exercised by Seller, shall not be limited or           otherwise
affected by or as a result of any information furnished to, or any
          investigation made by or any knowledge of, Seller or any of its
representatives.  

Page 26 of 32

        Section
9.2 Indemnification 

        (a)              Seller
hereby undertakes to indemnify Buyer against, and agrees to hold it           harmless
from, any and all damages, claims, debts, actions, assessments,           judgments,
losses, fines, fees, penalties and expenses (including, without           limitation,
reasonable expenses of investigation and reasonable attorneys’          fees and
expenses in connection with any action, suit or proceeding)           (collectively,
“Losses”) incurred or suffered by it during the           term of
Indemnification Period (or attributed to the Indemnification Period)           arising
out of:  

	 	(i) 	any
misrepresentation, inaccuracy or breach of representation and warranty,
               covenant or agreement made or to be performed by Seller pursuant to this
               Agreement; and 

	 	(ii) 	without
limiting sub-section (i) above, the assertion of any claim based upon                the
Seller having infringed upon, violated or misappropriated, or the                Buyer’s
use of the SuperCom Intellectual Property after the Closing                infringing
upon, violating or misappropriating any Intellectual Property of any                third
party. 

        (b)              Seller
hereby undertakes to indemnify Buyer against, and agrees to hold it           harmless
from, any and all Losses incurred or suffered by it arising out of the           failure
of Seller to assume responsibility for any obligation or liability           relating to
the Excluded Assets and failure to pay and discharge when due any           liability
which is not part of the Assumed Liabilities.  

        (c)              Buyer
hereby undertakes to indemnify Seller against, and agrees to hold it           harmless
from, any and all Losses incurred or suffered by it during the term of
          Indemnification Period arising out of any breach of representation and
warranty,           covenant or agreement made or to be performed by Buyer pursuant to
this           Agreement.  

        (d)              Notwithstanding
the aforesaid in this Article IX, it is hereby agreed that the           indemnification
obligation of Seller and Buyer under Sections 9.2(a), and 9.2(c)           hereinabove
and any other damage loss or expense incurred by Seller or Buyer, as           the case
may be, will be limited to and will apply to Losses that (in the           aggregate) are
greater than U.S. $300,000, in which event the indemnitor will           indemnify the
indemnitee from the first dollar. In no such event the indemnitor           shall be
required to indemnify the indemnitee for any Loss or Losses that (in           the
aggregate) are greater than U.S. $3,000,000.  

ARTICLE X 

Termination  

        Section
10.1 Termination This Agreement may be terminated at any time prior to
the Closing by:  

        (a)              The
mutual written consent of Seller and Buyer; or  

        (b)              Either
Seller or Buyer if the Closing has not occurred by the close of business
          onJanuary 31, 2007, and if the failure to consummate the Asset Purchase on or
          before such date did not result from the failure by the party seeking
          termination of this Agreement to fulfill any undertaking or commitment provided
          for herein that is required to be fulfilled prior to Closing; or  

Page 27 of 32

        (c)              Seller,
provided it is not then in material breach of any of its obligations           hereunder,
if Buyer fails to perform in any material respect any covenant in           this
Agreement when performance thereof is due or Buyer shall have breached in           any
material respect any of the representations or warranties contained in this
          Agreement and does not cure the failure or breach within thirty (30) days after
          Seller delivers written notice thereof; or  

        (d)              Buyer,
provided it is not then in material breach of any of its obligations           hereunder,
if Seller fails to perform in any material respect any covenant in           this
Agreement when performance thereof is due or Seller shall have breached in           any
material respect any of the representations and warranties contained in this
          Agreement and does not cure the failure or breach within thirty (30) days after
          Buyer delivers written notice thereof.  

        Section
10.2 Procedure and Effect of Termination In the event of termination of
this Agreement by either or both of Seller and Buyer pursuant to Section 10.1, written
notice thereof shall forthwith be given by the terminating party to the other party
hereto, and this Agreement shall thereupon terminate and become void and have no effect,
and the transactions contemplated hereby shall be abandoned without further action by the
parties hereto, except that the provisions of Section 11.4 shall survive the termination
of this Agreement; provided, however, that such termination shall not relieve any party
hereto of any liability for any breach of this Agreement. If this Agreement is terminated
as provided herein, all filings, applications and other submissions made in anticipation
of the transactions contemplated hereby shall, to the extent practicable, be withdrawn
from the agency or other persons to which they were made.  

ARTICLE XI 

Miscellaneous  

        Section
11.1 Counterparts This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and shall
become effective when one or more counterparts have been signed by each of the parties
and delivered to the other party.  

        Section
11.2 Governing Law; Consent to Jurisdiction This Agreement shall be
governed by and construed in accordance with the laws of the State of Israel without
reference to the choice of law principles thereof. Buyer and Seller consent to and hereby
submit to the exclusive jurisdiction of the suitable court in Tel-Aviv Jaffa.  

        Section
11.3 Entire Agreement Except as provided in , this Agreement (including
agreements incorporated by reference herein), the Disclosure Schedule and the Exhibits
hereto contain the entire agreement between the parties with respect to the subject
matter hereof and there are no agreements, understandings, representations or warranties
between the parties other than those set forth or referred to herein or therein.  

        Section
11.4 Expenses Each party to this Agreement shall bear and pay all fees,
costs and expenses (including legal fees and accounting fees) that have been incurred or
that are incurred by such party in connection with the transactions contemplated by this
Agreement, including all fees, costs and expenses incurred by such party in connection
with the negotiation, preparation and review of this Agreement, all agreements,
certificates, opinions and other instruments and documents delivered or to be delivered
in connection with the transactions contemplated by this Agreement and the preparation
and submission of any filing or notice required to be made or given in connection with
any of the transactions contemplated by this Agreement.  

Page 28 of 32

        Section
11.5 Notices All notices hereunder shall be sufficiently given
for all purposes hereunder if in writing and delivered personally, sent by documented
overnight delivery service or, to the extent receipt is confirmed, telecopy, telefax or
other electronic transmission service to the appropriate address or number as set forth
below.  

Notices to Seller shall be addressed
to: 

SuperCom Ltd.

Hasharon Industrial park,

P.O.B. 5039, Qadima 60920; Israel.

Tel.: +972-9-8890800

Fax: +972-9-8890820

Attention: CEO

With a copy to:

Yossi Avraham, Arad & Co.

Tel.: +972-3-6086888

Fax: +972-3-6093801

Attention: Yossi Avraham, Adv.

or at such other address and to the
attention of such other Person as Seller may designate by written notice to Buyer. 

Notices to Buyer shall be addressed
to: 

On Track Innovations Ltd.

Address: P.O. Box 32 ZHR IZ, Rosh Pina, Israel 12000

Fax: +972 4 6938887

Attention: Mr. Oded Bashan

With a copy to:

Zysman, Aharoni, Gayer and Co., Law Offices

52A Hayarkon St.

Tel Aviv, Israel

Attn.: Eran Ben Dor, Adv.

Fax: 972-3-7955555

Page 29 of 32

Any notice sent in accordance with
this Section 11.5 shall be effective (i) if mailed, five (5) business days after mailing
(if domestic) and ten (10) business days (if international), (ii) if sent by express
courier, two (2) business days after mailing (if domestic) and three (3) business days
after mailing (if international), (iii) if sent by messenger, on the first business day
following the day of delivery, and (iv) if sent via facsimile, on the first business day
after transmission and electronic confirmation of receipt or (if transmitted and received
on a non-business day) on the second business day following transmission and electronic
confirmation of receipt. 

        Section
11.6 Successors and Assigns This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns;
provided, however, that no party hereto will assign its rights or delegate its
obligations under this Agreement without the express prior written consent of each other
party hereto, except that either party may assign this Agreement to any Entity that
succeeds to substantially all of such party’s assets and liabilities only after the
Closing.  

        Section
11.7 Headings: Definitions The section and article headings contained
in this Agreement are inserted for convenience of reference only and will not affect the
meaning or interpretation of this Agreement. All references to Sections or Articles
contained herein mean Sections or Articles of this Agreement unless otherwise stated.  

        Section
11.8 Amendment This Agreement may not be amended, modified, superseded,
canceled, renewed or extended except by a written instrument signed by the party to be
charged therewith.  

        Section
11.9 Waiver; Effect of Waiver No provision of this Agreement may be
waived except by a written instrument signed by the party waiving compliance. No waiver
by any party hereto of any of the requirements hereof or of any of such party’s
rights hereunder shall release the other parties from full performance of their remaining
obligations stated herein. No failure to exercise or delay in exercising on the part of
any party hereto any right, power or privilege of such party shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, power or privilege
preclude any other or further exercise thereof or the exercise of any other right, power
or privilege by such party.  

        Section
11.10 Interpretation; Absence of Presumption 

        (a)              For
the purposes hereof, (i) the terms “hereof,” “herein”          and
“herewith” and words of similar import shall, unless otherwise
          stated, be construed to refer to this Agreement as a whole (including all of
the           Schedules hereto) and not to any particular provision of this Agreement,
and           Article, Section, paragraph and Schedule references are to the Articles,
          Sections, paragraphs and Schedules to this Agreement unless otherwise
specified,           (ii) the word “including” and words of similar import when
used in           this Agreement means “including, without limitation,” unless
the           context otherwise requires or unless otherwise specified, (iii) the word
          “or” shall not be exclusive, (iv) provisions shall apply, when
          appropriate, to successive events and transactions and (v) all references to
any           period of days shall be deemed to be to the relevant number of calendar
days.  

        (b)              This
Agreement shall be construed without regard to any presumption or rule
          requiring construction or interpretation against the party drafting or causing
          any instrument to be drafted.  

Page 30 of 32

        Section
11.11 Finder’s Fees Each party shall bear its own finder’s fees
obligations in connection with this Agreement and the transactions contemplated herein,
to the extent such party undertook to pay any finder’s fees. 

        Section
11.12 Remedies No remedy under this Agreement or at law or in equity
shall include, provide for or permit the payment of multiple, exemplary, punitive or
consequential damages or any equitable equivalent thereof or substitute therefor, and the
burden shall be on the party claiming loss to show actual loss in the amount claimed.
Except for the right of indemnification according to Article IX above, Seller and Buyer
shall have no other or further remedy against the other party under this Agreement.  

        Section
11.13 Severability In the event that any provision of this Agreement,
or the application of any such provision to any Person or set of circumstances, shall be
determined to be invalid, unlawful, void or unenforceable to any extent, the remainder of
this Agreement, and the application of such provision to Persons or circumstances other
than those as to which it is determined to be invalid, unlawful, void or unenforceable,
shall not be impaired or otherwise affected and shall continue to be valid and
enforceable to the fullest extent permitted by law.  

[The remainder of this
page has been intentionally left blank.]  

Page 31 of 32

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on
their behalf as of the date first written above. 

			ON TRACK INNOVATIONS LTD.

By:      _____________________________________

Name: _____________________________________
Title    _____________________________________

			SUPERCOM LTD.

By:      _____________________________________

Name: _____________________________________
Title    _____________________________________

			

By:      _____________________________________

Name: _____________________________________
Title    _____________________________________

Exhibit A  

On Track Innovations Ltd.

Z.H.R. Industrial Zone

P.O. Box 32

Rosha Pina, Israel 12000

	 	Re: 	Lock-Up
Agreement 

        The
undersigned, a Shareholder of On Track Innovations Ltd. (the “Company”),
holding 2,827,200 ordinary shares nominal value NIS 0.1 per share, of the Company
(“Restricted Shares”), issued to the Shareholder by the Company
pursuant to a certain Asset Purchase Agreement by and between the undersigned and the
Company dated November 7, 2006 (the “APA”), on the Closing Date, hereby
agrees that, without the prior written consent of the Company, the undersigned will not,
for a period as determined under the Schedule A attached hereto, commencing on the
Closing Date (1) offer, pledge, sell, contract to sell, sell any option or contract to
purchase, purchase any option or contract to sell, or otherwise dispose of or transfer,
the Restricted Shares or (2) enter into any swap or other derivative transaction that
transfers to another, in whole or in part, directly or indirectly, the economic
consequence of ownership of respective part of the Restricted Shares as determined under
Schedule A hereunder, whether any such transaction or swap described in clause (1)
or (2) above is to be settled by delivery Restricted Shares, in cash or otherwise;
provided however that the undersigned shall be entitled to pledge the Restricted Shares in
order to secure financing for the undersigned’s (or its Affiliates) benefit,
including without limitation pursuant to Section 8.6 of the APA, subject to the Restricted
Shares being locked up pursuant to the terms of this Lock-Up Agreement (the “Lock
Up-Undertaking”). Capitalized terms used and not defined herein have the meanings
assigned to them in the APA. 

        In
furtherance of the foregoing, the Company, and any duly appointed transfer agent for the
registration or transfer of the securities described herein, is hereby authorized to
decline to make any transfer of securities if such transfer would constitute a violation
or breach of this Lock-Up Agreement. 

        The
undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into this Lock-Up Agreement. All authority herein conferred or agreed
to be conferred and any obligations of the undersigned shall be binding upon the
successors, assigns, heirs or personal representatives of the undersigned. 

        The
undersigned understands that this Lock-Up Agreement is irrevocable. 

        This
Lock-Up Agreement shall be governed by and construed in accordance with the laws of the
State of Israel. 

	 	Very truly yours,

SuperCom Ltd.

By:              

Title:           

Date:
	

________________________________

________________________________

________________________________

Schedule
A  

	1.  	403,885
Restricted Shares will be free from the Lock-Up Undertaking immediately                on
________ (the “Closing Date”). 

	2.  	Additional
403,885 Restricted Shares will be free from the Lock-Up Undertaking                on
__________ [3 months after the Closing Date]. 

	3.  	Additional
403,885 Restricted Shares will be free from the Lock-Up Undertaking                on
__________ [6 months after the Closing Date]. 

	4.  	Additional
403,885 Restricted Shares will be free from the Lock-Up Undertaking                on
___________ [9 months after the Closing Date]. 

	5.  	Additional
403,885 Restricted Shares will be free from the Lock-Up Undertaking                on
__________ [12 months after the Closing Date]. 

	6.  	Additional
403,885 Restricted Shares will be free from the Lock-Up Undertaking                on
___________ [15 months after the Closing Date]. 

	7.  	Additional
403,890 Restricted Shares will be free from the Lock-Up Undertaking                on
_____________ [18 months after the Closing Date]. 

Exhibit B  

REGISTRATION RIGHTS
AGREEMENT  

        This
Registration Rights Agreement (this “Agreement”) is made and entered into
as of ________________, 2006 by and between On Track Innovations Ltd., an Israeli
corporation (the “Company”), and SuperCom Ltd., an Israeli corporation
(“SuperCom”). 

        This
Agreement is made pursuant to the Asset Purchase Agreement, dated as of the date hereof,
between the Company and SuperCom (the “Purchase Agreement”. All
capitalized terms used but not defined herein shall bear the meaning ascribed to them in
the Purchase Agreement). 

        The
parties hereby agree as follows: 

             1.
          Certain Definitions. 

        As
used in this Agreement, the following terms shall have the following meanings: 

        “Affiliate”
means, with respect to any person, any other person which directly or indirectly controls,
is controlled by, or is under common control with, such person. 

        “Business
Day” means a day, other than a Saturday or Sunday, on which banks in Israel are
open for the general transaction of business. 

        “Filing
Deadline” means (a) with respect to the initial Registration Statement required
to be filed under Section 2(a)(i), the later of: (i) ninety (90) days after the Closing
Date; or (ii) 45 days after receipt of all information required from SuperCom to file the
initial Registration Statement, and (b) with respect to any additional Registration
Statements that may be required pursuant to Section 2(a)(ii), the 30th day
following (x) if such Registration Statement is required because the SEC shall have
notified the Company in writing that certain Registrable Securities were not eligible for
inclusion on a previously filed Registration Statement, the date or time on which the SEC
shall indicate as being the first date or time that such Registrable Securities may then
be included in a Registration Statement, or (y) if such Registration Statement is required
for a reason other than as described in (x) above, the date on which the Company first
knows, or reasonably should have known, that such additional Registration Statement(s) is
required; provided, however, that if such Registration Statement under
Section 2(a)(ii) is required to be filed due to SuperCom’s failure to provide
necessary information requested by the Company in connection with the preparation and
filing of a Registration Statement hereunder, including, without limitation, information
required under Regulation S-X, then such Registration Statement shall be filed no later
than 45 days following the receipt of all required information. 

        “Ordinary
Shares” shall mean the Company’s Ordinary Shares, par value NIS0.10 per
share, and any securities into which such Ordinary Shares may hereinafter be reclassified. 

        “Prospectus”
shall mean (i) any preliminary or final prospectus included in any Registration Statement,
as amended or supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by such Registration
Statement and by all other amendments and supplements to the prospectus, including
post-effective amendments and all material incorporated by reference in such prospectus,
and (ii) any “free writing prospectus” as defined in Rule 163 under the 1933
Act. 

        “Register,”
“registered” and “registration” refer to a registration
made by preparing and filing a Registration Statement or similar document in compliance
with the 1933 Act (as defined below), and the declaration or ordering of effectiveness of
such Registration Statement or document. 

        “Registrable
Securities” shall mean (i) the Shares and (ii) any other securities issued or
issuable with respect to or in exchange for Registrable Securities. 

        “Registration
Statement” shall mean any registration statement of the Company filed under the
1933 Act that covers the resale of any of the Registrable Securities pursuant to the
provisions of this Agreement, amendments and supplements to such Registration Statement,
including post-effective amendments, all exhibits and all material incorporated by
reference in such Registration Statement. 

        “SEC”
means the U.S. Securities and Exchange Commission. 

        “Shares”
means the Ordinary Shares issued pursuant to the Purchase Agreement. 

        “1933
Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder. 

        “1934
Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder. 

             2.
          Registration. 

		    (a)        Registration
Statements.  

		    (i)                 Promptly
following the Closing Date (as defined in the Purchase Agreement) but           no later
than the Filing Deadline, the Company shall prepare and file with the           SEC a
Registration Statement on Form F-3 (or, if Form F-3 is not then available           to
the Company, on such form of registration statement as is then available to
          effect a registration for resale of the Registrable Securities), covering the
          resale of the Registrable Securities. Such Registration Statement shall include
          a plan of distribution substantially in the form attached hereto as Exhibit
          A (subject to any comments thereon by the SEC). Such Registration Statement
          also shall cover, to the extent allowable under the 1933 Act and the rules
          promulgated thereunder (including Rule 416), such indeterminate number of
          additional Ordinary Shares resulting from stock splits, stock dividends or
          similar transactions with respect to the Registrable Securities. The
          Registration Statement (and each amendment or supplement thereto, and each
          request for acceleration of effectiveness thereof) shall be provided in
          accordance with Section 3(c) to SuperCom and its counsel prior to its filing or
          other submission. If a Registration Statement covering the Registrable
          Securities is not filed with the SEC by the Filing Deadline, the Company will
          make pro rata payments to SuperCom, as liquidated damages and not as a penalty,
          in an amount equal to 0.75% of the fair market value of the aggregate
          consideration received by SuperCom pursuant to the Purchase Agreement
          (calculated based on the average closing price of the Ordinary Share traded on
          Nasdaq Global Market during the ten (10) trading days prior to the date of the
          Purchase Agreement) of such Registrable Securities released from the lock-up
          undertaking pursuant to the Lock-Up Agreement at such time (and in the event
          such number changes during the period, the weighted-average number of such
          Registrable Securities, during the applicable period) (“Liquidated
          Damages”)) for each 30-day period or pro rata for any portion thereof
          following the Filing Deadline for which no Registration Statement is filed with
          respect to the Registrable Securities payable within 3 Business Days after the
          end of such successive 30-day period (or portion thereof); provided, however,
that in no event shall such Liquidated Damages in the aggregate           exceed 10% of
such aggregate consideration received by SuperCom pursuant to the           Purchase
Agreement. Such payments shall be made to SuperCom in cash. In           recognition of
the difficulty of determining SuperCom’s damages or loss as           a result of
the Registration Statement not being filed within the time periods           described
above, it is hereby agreed that the foregoing amount of Liquidated           Damages is
deemed to represent a reasonable estimate of SuperCom’s damages           and shall
be the sole monetary remedy of SuperCom in this regard, but shall not           affect
the right of SuperCom to seek injunctive relief.  

Page 2 of 16

		    (ii)       Additional
Registrable Securities. If for any reason the SEC does not           permit all of
the Registrable Securities to be included in the Registration           Statement filed
pursuant to Section 2(a)(i), or for any other reason any           outstanding
Registrable Securities are not then covered by an effective           Registration
Statement, then the Company shall prepare and file with the SEC by           the Filing
Deadline an additional Registration Statements on Form F-3 (or, if           Form F-3 is
not then available to the Company, on such form of registration           statement as is
then available to effect a registration for resale of such           additional Ordinary
Shares (the “Additional Shares”)) covering the           resale of the
Additional Shares. Such Registration Statement also shall cover,           to the extent
allowable under the 1933 Act and the rules promulgated thereunder           (including
Rule 416), such indeterminate number of additional Ordinary Shares           resulting
from stock splits, stock dividends or similar transactions with           respect to the
Additional Shares. The Registration Statement (and each amendment           or supplement
thereto, and each request for acceleration of effectiveness           thereof) shall be
provided in accordance with Section 3(c) to SuperCom and its           counsel prior to
its filing or other submission. If a Registration Statement           covering the
Additional Shares is required to be filed under this Section           2(a)(ii) and is
not filed with the SEC by the Filing Deadline, the Company will           make pro rata
payments to SuperCom, as liquidated damages and not as a penalty,           in an amount
equal to the Liquidated Damages multiplied by a fraction, the           numerator of
which is the Registrable Securities not included in the           Registration Statement
filed pursuant to Section 2(a)(i) and the denominator of           which is all of the
Registrable Securities, and in the same manner such           Liquidated Damages are
being paid under Section 2.1(a)(i) above. Such payments           shall be made to
SuperCom in cash. In recognition of the difficulty of           determining SuperCom’s
damages or loss as a result of the Registration           Statement not being filed
within the time periods described above, it is hereby           agreed that the foregoing
amount of Liquidated Damages is deemed to represent a           reasonable estimate of
SuperCom’s damages and shall be the sole monetary           remedy of SuperCom in
this regard, but shall not affect the right of SuperCom to           seek injunctive
relief.  

		    (b)       Expenses.
The Company will pay all expenses associated with each           registration, including
filing and printing fees, the Company’s  counsel and accounting fees and expenses,
costs associated with clearing the Registrable Securities for sale under applicable state
securities laws and listing fees, but excluding discounts, commissions, fees of
underwriters, selling brokers, dealer managers or similar securities industry
professionals with respect to the Registrable Securities being sold. It is hereby
clarified that the Company shall not pay any fees and expenses of counsel to SuperCom or
any other of SuperCom’s expenses in connection with the registration.  

Page 3 of 16

		    (c)        Effectiveness.
The Company shall use reasonable best efforts to have the           Registration
Statement declared effective as soon as   practicable. The Company shall notify SuperCom
by facsimile or e-mail as promptly as                     practicable, and in any event,
within twenty-four (24) hours, after any                     Registration Statement is
declared effective and shall promptly provide SuperCom                     with copies of
any related Prospectus to be used in connection with the sale or
                    other disposition of the securities covered thereby. If (A)(x) a
Registration                     Statement covering the Registrable Securities is not
declared effective by the                     SEC prior to the earlier of (i) ten (10)
Business Days after the SEC shall have                     informed the Company that no
review of the Registration Statement will be made                     or that the SEC has
no further comments on the Registration Statement or (ii)                     the 120th day
after the earlier of the Filing Deadline or the filing                     of the
Registration Statement (provided that SuperCom did not delay the
                    declaration of the Registration Statement as effective), or (y) a
Registration                     Statement covering Additional Shares is not declared
effective by the SEC within                     one-hundred and twenty (120) days
following the time such Registration Statement                     was required to be
filed pursuant to Section 2(a)(ii); except, in each case, due                     solely
to SuperCom’s failure to provide the necessary information requested
                    by the Company in connection with the preparation and filing of a
Registration                     Statement hereunder, including, without limitation,
information required under                     Regulation S-X, or (B) after a
Registration Statement has been declared                     effective by the SEC, sales
cannot be made pursuant to such Registration                     Statement for any reason
(including without limitation by reason of a stop                     order, or the
Company’s failure to update the Registration Statement), but
                    excluding the inability of SuperCom to sell the Registrable
Securities covered                     thereby due to market conditions and except as
excused pursuant to subparagraph                     (e) below, then the Company will
make pro rata payments to SuperCom, as                     liquidated damages and not as
a penalty, in an amount equal to the Liquidated                     Damages for each
30-day period or pro rata for any portion thereof following the                     date
by which such Registration Statement should have been effective. The
                    amounts payable as Liquidated Damages pursuant to this paragraph
shall be                     payable within three (3) Business Days at the end of such
successive 30-day                     period (or portion thereof); provided, however,
that in no event                     shall such Liquidated Damages in the aggregate
exceed 10% of such aggregate                     consideration received by SuperCom
pursuant to the Purchase Agreement. Such                     payments shall be made to
SuperCom in cash. In recognition of the difficulty of                     determining
SuperCom’s damages or loss as a result of the Registration
                    Statement not being declared effective within the time periods
described above,                     it is hereby agreed that the foregoing amount of
Liquidated Damages is deemed to                     represent a reasonable estimate of
SuperCom’s damages and shall be the sole                     monetary remedy of
SuperCom in this regard, but shall not affect the right of                     SuperCom
to seek injunctive relief.  

		    (d)        Notwithstanding
anything herein to the contrary, the Company’s obligations           hereunder shall
be suspended with respect to the  Registrable
Securities in the event that SuperCom fails to provide promptly to the Company such
information as the Company may reasonably request at any time to enable the Company to
comply with any applicable law or regulation or to facilitate preparation of a
Registration Statement. 

Page 4 of 16

		    (e)        Suspension 

		    (i)        In
addition to any suspension rights under Section 2(e)(ii) below, upon the
          happening of any pending corporate development, public filing with the SEC or
          similar event, that, in the reasonable judgment of Company’s Board of
          Directors, renders it advisable to suspend the use of the Prospectus or upon
the           request by an underwriter in connection with an underwritten public
offering of           the Company’s securities, the Company may, on not more than
two (2)           occasions each calendar year and for not more than forty-five (45) days
on each           such occasion, suspend use of the Prospectus, upon written notice to
SuperCom           (which notice will not disclose the content of any material non-public
          information and will indicate the date of the beginning and end of the intended
          period of suspension, if known), in which case SuperCom shall discontinue any
          disposition of Registrable Securities by the Registration Statement or
          Prospectus until copies of a supplemented or amended Prospectus are distributed
          to SuperCom or until SuperCom is advised in writing by the Company that sales
of           Registrable Securities under the applicable Prospectus may be resumed and
have           received copies of any additional or supplemental filings that are
incorporated           or deemed incorporated by reference in any such Prospectus; provided,
          however, that the Company may not suspend use of the Prospectus on more
than           two (2) occasion for more than sixty (60) days each time, during each
calendar           year period following the Closing Date and ending on such date that
the           Registration Statement is not effective and can not be used for resale of
the           Registrable Securities. In the event the reason for such Suspension ceased
to           exist, the Company will use its commercially reasonable efforts to cause the
use           of the Prospectus so suspended to be resumed as soon as possible after
delivery           of a Suspension Notice (as defined below) to SuperCom. The suspension
and notice           thereof described in the foregoing sentences shall be held by
SuperCom in           strictest confidence and shall not be disclosed by SuperCom.  

		    (ii)        Subject
to Section 2(e)(iii) below, in the event of: (1) any request by the SEC           or any
other U.S. federal or state governmental authority during the           Effectiveness
Period for amendments or supplements to a Registration Statement           or related
prospectus or for additional information, (2) the issuance by the SEC           or any
other U.S. federal or state governmental authority of any stop order           suspending
the effectiveness of a Registration Statement or the initiation of           any
proceedings for that purpose, (3) the receipt by the Company of any
          notification with respect to the suspension of the qualification or exemption
          from qualification of any of the Registrable Securities for sale in any
          jurisdiction or the initiation of any proceeding for such purpose, or (4) any
          event or circumstance which necessitates the making of any changes in the
          Registration Statement or Prospectus, or any document incorporated or deemed to
          be incorporated therein by reference, so that, in the case of the Registration
          Statement, it will not contain any untrue statement of a material fact or any
          omission to state a material fact required to be stated therein or necessary to
          make the statements therein not misleading, and that in the case of the
          Prospectus, it will not contain any untrue statement of a material fact or any
          omission to state a material fact required to be stated therein or necessary to
          make the statements therein, in the light of the circumstances under which they
          were made, not misleading, then the Company shall deliver a certificate in
          writing to SuperCom (“Suspension Notice”) to the effect of the
          foregoing (which notice will not disclose the content of any material
non-public           information and will indicate the date of the beginning and end of
the intended           period of suspension, if known), and, upon receipt of such
Suspension Notice,           SuperCom will discontinue disposition of Registrable
Securities covered by the           Registration Statement or Prospectus (“Suspension”)
until           SuperCom’s receipt of copies of a supplemented or amended Prospectus
          prepared and filed by the Company, or until SuperCom is advised in writing by
          the Company that the current Prospectus may be used, and have received copies
of           any additional or supplemental filings that are incorporated or deemed
          incorporated by reference in any such prospectus. In the event of any
          Suspension, the Company will use its commercially reasonable efforts to cause
          the use of the Prospectus so suspended to be resumed as soon as possible after
          delivery of a Suspension Notice to SuperCom. The Suspension and Suspension
          Notice described in this Section 2(e)(ii) shall be held by SuperCom in
strictest           confidence and shall not be disclosed by SuperCom.  

Page 5 of 16

		    (iii)        Provided
that a Suspension is not then in effect, SuperCom may sell Registrable
          Securities under the Registration Statement, provided that SuperCom arranges
for           delivery of a current Prospectus to the transferee of such Registrable
          Securities to the extent such delivery is required by applicable law. In the
          event of a sale of Registrable Securities by SuperCom, SuperCom must also
          deliver to the Company’s transfer agent, with a copy to the Company, a
          certificate of subsequent sale reasonably satisfactory to the Company, so that
          ownership of the Registrable Securities may be properly transferred. The
Company           will cooperate to facilitate the timely preparation and delivery of
certificates           (unless otherwise required by applicable law) representing
Registrable           Securities sold.  

             3.
          Company Obligations. The Company will use reasonable best efforts to
          effect the registration of the Registrable Securities in accordance with the
          terms hereof, and pursuant thereto the Company will, as expeditiously as
          possible: 

		    (a)        use
reasonable best efforts to cause such Registration Statement to become
          effective and to remain continuously effective for a period  that
will terminate upon the earlier of (i) the date on which all Registrable Securities
covered by such Registration Statement as amended from time to time, have been sold, (ii)
the date on which all Registrable Securities covered by such Registration Statement may be
sold by non-Affiliates of the Company immediately without registration under the
Securities Act and without volume restrictions pursuant to Rule 144(k), or (iii) 30 months
following the date the Registration Statement covering all Registrable Securities was
declared effective (the “Effectiveness Period”), and advise SuperCom in writing
when the Effectiveness Period has expired; 

		    (b)        prepare
and file with the SEC such amendments and post-effective amendments to           the
Registration Statement and the Prospectus as may be  necessary
to keep the Registration Statement effective for the Effectiveness Period and to comply
with the provisions of the 1933 Act and the 1934 Act with respect to the distribution of
all of the Registrable Securities covered thereby; 

		    (c)        provide
copies of each Registration Statement and all amendments and supplements
          thereto to SuperCom no fewer than four (4) days prior to their filing with the
SEC; 

		    (d)        furnish
to SuperCom and its legal counsel (i) promptly after the same is           prepared and
publicly distributed, filed with the SEC, or received by the Company (but not later than
two (2) Business Days after the filing date, receipt date or sending date, as the case
may be) one (1) copy of any Registration Statement and any amendment thereto, each
preliminary prospectus and Prospectus and each amendment or supplement thereto, and each
letter written by or on behalf of the Company to the SEC or the staff of the SEC, and
each item of correspondence from the SEC or the staff of the SEC, in each case relating
to such Registration Statement if and to the extent the Company deems such information to
be applicable to SuperCom (other than any portion of any thereof which contains
information for which the Company has sought confidential treatment), and (ii) such
number of copies of a Prospectus, including a preliminary prospectus, and all amendments
and supplements thereto and such other documents as SuperCom may reasonably request in
order to facilitate the disposition of the Registrable Securities owned by SuperCom that
are covered by the related Registration Statement;  

Page 6 of 16

		    (e)        use
reasonable best efforts to (i) prevent the issuance of any stop order or           other
suspension of effectiveness and, (ii) if such order is issued, obtain the withdrawal of
any such order at the earliest possible moment;  

		    (f)        prior
to any public offering of Registrable Securities, use reasonable best           efforts
to register or qualify or cooperate with SuperCom and its counsel in connection with the
registration or qualification of such Registrable Securities for offer and sale under the
securities or blue sky laws of such jurisdictions requested by SuperCom and do any and
all other commercially reasonable acts or things necessary or advisable to enable the
distribution in such jurisdictions of the Registrable Securities covered by the
Registration Statement; provided, however, that the Company shall not be required
in connection therewith or as a condition thereto to (i) qualify to do business in any
jurisdiction where it would not otherwise be required to qualify but for this Section
3(f), (ii) subject itself to general taxation in any jurisdiction where it would not
otherwise be so subject but for this Section 3(f), or (iii) file a general consent to
service of process in any such jurisdiction;  

		    (g)        use
reasonable best efforts to cause all Registrable Securities covered by a
          Registration Statement to be listed on each securities exchange, interdealer
quotation system or other market on which similar securities issued by the Company are
then listed;  

		    (h)        immediately
notify SuperCom, at any time prior to the end of the Effectiveness           Period, upon
discovery that, or upon the happening of any event as a result of which, the Prospectus
includes an untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing, and promptly prepare, file with the SEC and
furnish to such holder a reasonable number of copies of a supplement to or an amendment
of such Prospectus as may be necessary so that such Prospectus shall not include an
untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in light of the
circumstances then existing.; and  

		    (j)        With
a view to making available to SuperCom the benefits of Rule 144 (or its
          successor rule) and any other rule or regulation of the SEC that may at any
time           permit SuperCom to sell Ordinary Shares to the public without
registration, the           Company covenants and agrees to use its reasonable best
efforts to: (i) make and           keep public information available, as those terms are
understood and defined in           Rule 144, until the earlier of (A) such date as all
of the Registrable           Securities may be resold pursuant to Rule 144(k) or any
other rule of similar           effect or (B) such date as all of the Registrable
Securities shall have been           resold; (ii) file with the SEC in a timely manner
all reports and other           documents required of the Company under the 1934 Act; and
(iii) furnish to           SuperCom upon request, as long as SuperCom owns any
Registrable Securities, (A)           a copy of the Company’s most recent Annual
Report on Form 20-F or Statement           of a Foreign Private Issuer on Form 6-K, and
(B) such other information as may           be reasonably requested in order to avail
SuperCom of any rule or regulation of           the SEC that permits the selling of any
such Registrable Securities without           registration.  

Page 7 of 16

             4.
          Due Diligence Review; Information. Upon reasonable notice and without
          undue interference of the Company’s business or operations, the Company
          shall make available, during normal business hours, for inspection and review by
          SuperCom, advisors to and representatives of SuperCom (who may or may not be
          affiliated with SuperCom and who are reasonably acceptable to the Company), all
          relevant publicly available, non-confidential financial and other records,
          pertinent corporate documents and properties of the Company as is customary for
          due diligence examinations in connection with public offerings, and cause the
          Company’s officers, directors and employees to supply all such relevant
          publicly available non-confidential information reasonably requested by
          SuperCom, its advisors to and representatives mentioned above. 

        The
Company shall not disclose material nonpublic information to SuperCom, or to advisors to
or representatives of SuperCom, unless prior to disclosure of such information the Company
identifies such information as being material nonpublic information and provides SuperCom,
such advisors and representatives with the opportunity to accept or refuse to accept such
material nonpublic information for review and SuperCom, if it wishes to obtain such
information, enters into an appropriate confidentiality agreement with the Company with
respect thereto. 

             5.
          Obligations of SuperCom. 

		    (a)        SuperCom
shall furnish in writing to the Company such information regarding           itself, the
Registrable Securities held by it and the intended method of disposition of the
Registrable Securities held by it, as shall be reasonably required to effect the
registration of such Registrable Securities and shall execute such documents in
connection with such registration as the Company may reasonably request. At least sixty
(60) days prior to the first anticipated filing date of any Registration Statement, the
Company shall notify SuperCom of the information the Company requires from SuperCom to
have any of the Registrable Securities included in the Registration Statement. SuperCom
shall provide such information to the Company at least forty-five (45) days prior to the
first anticipated filing date of such Registration Statement to have any of the
Registrable Securities included in the Registration Statement, in order to comply with
Item 5(b)(1) of Form F-3 or a successor provision thereof.  

		    (b)        SuperCom,
by its acceptance of the Registrable Securities, agrees to cooperate           with the
Company as reasonably requested by the Company in connection with the preparation and
filing of a Registration Statement hereunder.  

		    (c)        SuperCom
agrees that, upon receipt of any notice from the Company of either (i)           the
commencement of the applicable suspension pursuant to Section 2(e) above, or (ii) the
happening of an event pursuant to Section 3(h) hereof, SuperCom will immediately
discontinue disposition of Registrable Securities pursuant to the Registration Statement
covering such Registrable Securities, until SuperCom is advised by the Company that such
dispositions may again be made.  

Page 8 of 16

		    (d)        SuperCom
represents, warrants and covenants that neither it nor any affiliate           thereof is
or has engaged, or will engage, in (i) any “short sales” (as such term is
defined in Rule 200 promulgated under the Exchange Act) of the Registrable Securities,
including, without limitation, the maintaining of any short position with respect to,
establishing or maintaining a “put equivalent position” (within the meaning of
Rule 16a-1(h) under the Exchange Act) with respect to, entering into any swap, derivative
transaction or other arrangement (whether any such transaction is to be settled by
delivery of Ordinary Shares, other securities, cash or other consideration) that
transfers to another, in whole or in part, any economic consequences or ownership, or
otherwise dispose of, any of the Registrable Securities or (ii) any hedging transaction
which establishes a net short position with respect to the Registrable Securities.  

             6.
          Indemnification. 

		    (a)        Indemnification
by the Company. The Company will indemnify and hold           harmless SuperCom and
its officers, directors, employees and agents, successors           and assigns, and each
other person, if any, who controls SuperCom within the           meaning of the 1933 Act,
against any losses, claims, damages or liabilities,           joint or several, to which
they may become subject under the 1933 Act or           otherwise, insofar as such
losses, claims, damages or liabilities (or actions in           respect thereof) arise
out of or are based upon: (i) any untrue statement or           alleged untrue statement
of any material fact contained in any Registration           Statement, any preliminary
Prospectus or final Prospectus, or any amendment or           supplement thereof; (ii)
any blue sky application or other document executed by           the Company specifically
for that purpose or based upon written information           furnished by the Company
filed in any state or other jurisdiction in order to           qualify any or all of the
Registrable Securities under the securities laws           thereof (any such application,
document or information herein called a           “Blue Sky Application”);
(iii) the omission or alleged omission to           state therein a material fact
required to be stated therein or necessary to make           the statements therein not
misleading; (iv) any violation by the Company or its           agents of any rule or
regulation promulgated under the 1933 Act applicable to           the Company or its
agents and relating to action or inaction required of the           Company in connection
with such registration; or (v) any failure to register or           qualify the
Registrable Securities included in any such Registration in any           state where the
Company or its agents has affirmatively undertaken or agreed in           writing that
the Company will undertake such registration or qualification on           SuperCom’s
behalf and will reimburse SuperCom, and each such officer,           director or member
and each such controlling person for any legal or other           expenses reasonably
incurred by them in connection with investigating or           defending any such loss,
claim, damage, liability or action; provided, however, that the Company
will not be liable in any such case if and to           the extent that any such loss,
claim, damage or liability arises out of or is           based upon (i) an untrue
statement or alleged untrue statement or omission or           alleged omission so made
in conformity with information furnished by SuperCom or           any such controlling
person in writing specifically for use in such Registration           Statement or
Prospectus; or (ii) the use of an outdated or defective Prospectus           after the
Company has notified SuperCom in writing that the Prospectus is           outdated or
defective pursuant to Section 2(e) above.  

Page 9 of 16

		    (b)        Indemnification
by SuperCom. SuperCom agrees to indemnify and hold           harmless the Company,
its directors, officers, employees, agents, successors and           assigns, and each
person who controls the Company (within the meaning of the           1933 Act) against
any losses, claims, damages, liabilities and expense           (including reasonable
attorney fees) resulting from any untrue statement or           alleged untrue statement
of a material fact or any omission or alleged ommission           of a material fact
required to be stated in the Registration Statement or           Prospectus or amendment
or supplement thereto or necessary to make the           statements therein not
misleading, to the extent, but only to the extent, that           such untrue or alleged
untrue statement or omission or alleged omission is           contained in information
furnished in writing by SuperCom to the Company           specifically for inclusion in
such Registration Statement or preliminary           Prospectus or Prospectus or
amendment or supplement thereto. In no event shall           the liability of SuperCom be
greater in amount than the dollar amount of the           proceeds (net of all expense
paid by SuperCom in connection with any claim           relating to this Section 6 and
the amount of any damages SuperCom has otherwise           been required to pay by reason
of such untrue statement or omission) received by           SuperCom upon the sale of the
Registrable Securities included in the           Registration Statement giving rise to
such indemnification obligation. For the           avoidance of doubt, the provisions of
this Section 6(b) will remain in full           force and effect and survive the sale by
SuperCom of the Registrable Securities           covered by the Registration Statement.  

		    (c)        Conduct
of Indemnification Proceedings. Any person entitled to           indemnification
hereunder shall (i) give prompt notice to the indemnifying party of any claim with
respect to which it seeks indemnification and (ii) permit such indemnifying party to
assume the defense of such claim with counsel reasonably satisfactory to the indemnified
party; provided that any person entitled to indemnification hereunder shall have
the right to employ separate counsel and to participate in the defense of such claim, but
the fees and expenses of such counsel shall be at the expense of such person unless (a)
the indemnifying party has agreed to pay such fees or expenses, or (b) the indemnifying
party shall have failed to assume the defense of such claim and employ counsel reasonably
satisfactory to such person or (c) in the reasonable judgment of any such person, based
upon written advice of its counsel, a conflict of interest exists between such person and
the indemnifying party with respect to such claims (in which case, if the person notifies
the indemnifying party in writing that such person elects to employ separate counsel at
the expense of the indemnifying party, the indemnifying party shall not have the right to
assume the defense of such claim on behalf of such person); and provided, further,
that the failure of any indemnified party to give notice as provided herein shall not
relieve the indemnifying party of its obligations hereunder, except to the extent that
such failure to give notice shall materially adversely affect the indemnifying party in
the defense of any such claim or litigation. It is understood that the indemnifying party
shall not, in connection with any proceeding in the same jurisdiction, be liable for fees
or expenses of more than one separate firm of attorneys at any time for all such
indemnified parties. No indemnifying party will, except with the consent of the
indemnified party, consent to entry of any judgment or enter into any settlement that
does not include as an unconditional term thereof the giving by the claimant or plaintiff
to such indemnified party of a release from all liability in respect of such claim or
litigation.  

Page 10 of 16

		    (d)        Contribution.
If for any reason the indemnification provided for in the           preceding paragraphs
(a) and (b) is unavailable to an indemnified party or insufficient to hold it harmless,
other than as expressly specified therein, then the indemnifying party shall contribute
to the amount paid or payable by the indemnified party as a result of such loss, claim,
damage or liability in such proportion as is appropriate to reflect the relative fault of
the indemnified party and the indemnifying party, as well as any other relevant equitable
considerations. No person guilty of fraudulent misrepresentation within the meaning of
Section 11(f) of the 1933 Act shall be entitled to contribution from any person not
guilty of such fraudulent misrepresentation. In no event shall the contribution
obligation of a holder of Registrable Securities be greater in amount than the dollar
amount of the proceeds (net of all expenses paid by such holder in connection with any
claim relating to this Section 6 and the amount of any damages such holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission) received by it upon the sale of the Registrable Securities giving rise
to such contribution obligation.  

             7.
          Miscellaneous. 

		    (a)        Amendments
and Waivers. This Agreement may be amended only by a writing           signed by the
Company and SuperCom. The Company may take any action herein prohibited, or omit to
perform any act herein required to be performed by it, only if the Company shall have
obtained the written consent to such amendment, action or omission to act, of SuperCom.  

		    (b)        Notices.
All notices and other communications provided for or permitted           hereunder shall
be made as set forth in Section 11.5 of the Purchase Agreement. 

		    (c)        Assignments
and Transfers by SuperCom. The provisions of this Agreement           shall be
binding upon and inure to the benefit of SuperCom and its successors and assigns.
SuperCom may transfer or assign, in whole or from time to time in part, to one or more
persons its rights hereunder in connection with the transfer of Registrable Securities by
SuperCom to such person, provided that SuperCom complies with all laws applicable thereto
and provides written notice of assignment to the Company promptly after such assignment
is effected and provided further that the number of Registrable Securities so transferred
is not less than 200,000.  

		    (d)        Assignments
and Transfers by the Company. This Agreement may not be           assigned by the
Company (whether by operation of law or otherwise) without the prior written consent of
SuperCom, provided, however, that the                     Company may assign its rights
and delegate its duties hereunder to any surviving                     or successor
corporation in connection with a merger or consolidation of the
                    Company with another corporation, or a sale, transfer or other
disposition of                     all or substantially all of the Company’s assets
to another corporation,                     without the prior written consent of
SuperCom, after notice duly given by the                     Company to SuperCom.  

		    (e)        Benefits
of the Agreement. The terms and conditions of this Agreement           shall inure to
the benefit of and be binding upon the respective permitted successors and assigns of the
parties. Nothing in this Agreement, express or implied, is intended to confer upon any
party other than the parties hereto or their respective successors and assigns any
rights, remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.  

		    (f)        Counterparts;
Faxes. This Agreement may be executed in two or more           counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the
same instrument. This Agreement may also be executed via facsimile, which shall be deemed
an original.  

Page 11 of 16

		    (g)        Titles
and Subtitles. The titles and subtitles used in this Agreement are           used for
convenience only and are not to be considered in construing or interpreting this
Agreement.  

		    (h)        Severability.
Any provision of this Agreement that is prohibited or           unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof but
shall be interpreted as if it were written so as to be enforceable to the maximum extent
permitted by applicable law, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction. To the extent permitted by applicable law, the parties hereby waive any
provision of law which renders any provisions hereof prohibited or unenforceable in any
respect.  

		    (i)        Further
Assurances. The parties shall execute and deliver all such           further
instruments and documents and take all such other actions as may reasonably be required
to carry out the transactions contemplated hereby and to evidence the fulfillment of the
agreements herein contained.  

		    (j)        Entire
Agreement. This Agreement is intended by the parties as a final           expression
of their agreement and intended to be a complete and exclusive statement of the agreement
and understanding of the parties hereto in respect of the subject matter contained
herein. This Agreement supersedes all prior agreements and understandings between the
parties with respect to such subject matter.  

		    (k)        Governing
Law. This Agreement shall be governed by and construed in           accordance with
the laws of the State of Israel, without reference to the choice of law principles
thereof. The Company and SuperCom consent to and hereby submit to the exclusive
jurisdiction of the suitable court in Tel-Aviv Jaffa.  

Page 12 of 16

        IN
WITNESS WHEREOF, the parties have executed this Agreement or caused their duly authorized
officers to execute this Agreement as of the date first above written. 

			ON TRACK INNOVATIONS LTD.

By:_________________________

Name:
Title:

			SUPERCOM LTD.

By:_________________________

Name:
Title:

Page 13 of 16

Exhibit A  

Plan of Distribution 

        The
selling stockholders, which as used herein includes donees, pledgees, transferees or other
successors-in-interest selling Ordinary Shares or interests in Ordinary Shares received
after the date of this prospectus from a selling stockholder as a gift, pledge,
partnership distribution or other transfer, may, from time to time, sell, transfer or
otherwise dispose of any or all of their Ordinary Shares or interests in Ordinary Shares
on any stock exchange, market or trading facility on which the Ordinary Shares are traded
or in private transactions. These dispositions may be at fixed prices, at prevailing
market prices at the time of sale, at prices related to the prevailing market price, at
varying prices determined at the time of sale, or at negotiated prices. 

        The
selling stockholders may use any one or more of the following methods when disposing of
Ordinary Shares or interests therein: 

        –
ordinary brokerage transactions and transactions in which the broker-dealer solicits
purchasers; 

        –
block trades in which the broker-dealer will attempt to sell the Ordinary Shares as agent,
but may position and resell a portion of the block as principal to facilitate the
transaction; 

        –
purchases by a broker-dealer as principal and resale by the broker-dealer for its account; 

        – an
exchange distribution in accordance with the rules of the applicable exchange; 

        –
privately negotiated transactions;

        through
the writing or settlement of options or other hedging transactions, whether through an
options exchange or otherwise; 

        –
broker-dealers may agree with the selling stockholders to sell a specified number of such
Ordinary Shares at a stipulated price per share; and 

        –
a combination of any such methods of sale. 

        The
selling stockholders may, from time to time, pledge or grant a security interest in some
or all of the Ordinary Shares owned by them and, if they default in the performance of
their secured obligations, the pledgees or secured parties may offer and sell the Ordinary
Shares, from time to time, under this prospectus, or under an amendment to this prospectus
under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list
of selling stockholders to include the pledgee, transferee or other successors in interest
as selling stockholders under this prospectus. The selling stockholders also may transfer
the Ordinary Shares in other circumstances, in which case the transferees, pledgees or
other successors in interest will be the selling beneficial owners for purposes of this
prospectus. 

Page 14 of 16

        In
connection with the sale of our Ordinary Shares or interests therein, the selling
stockholders may loan or pledge the Ordinary Shares to broker-dealers that in turn may
sell these securities. The selling stockholders may also enter into option or other
transactions with broker-dealers or other financial institutions or the creation of one or
more derivative securities which require the delivery to such broker-dealer or other
financial institution of Ordinary Shares offered by this prospectus, which Ordinary Shares
such broker-dealer or other financial institution may resell pursuant to this prospectus
(as supplemented or amended to reflect such transaction). 

        The
aggregate proceeds to the selling stockholders from the sale of the Ordinary Shares
offered by them will be the purchase price of the Ordinary Shares less discounts or
commissions, if any. Each of the selling stockholders reserves the right to accept and,
together with their agents from time to time, to reject, in whole or in part, any proposed
purchase of Ordinary Shares to be made directly or through agents. We will not receive any
of the proceeds from this offering. 

        The
selling stockholders also may resell all or a portion of the Ordinary Shares in open
market transactions in reliance upon Rule 144 under the Securities Act of 1933, provided
that they meet the criteria and conform to the requirements of that rule. 

        The
selling stockholders and any underwriters, broker-dealers or agents that participate in
the sale of the Ordinary Shares or interests therein may be “underwriters”
within the meaning of Section 2(11) of the Securities Act. Any discounts, commissions,
concessions or profit they earn on any resale of the Ordinary Shares may be underwriting
discounts and commissions under the Securities Act. Selling stockholders who are
“underwriters” within the meaning of Section 2(11) of the Securities Act will be
subject to the prospectus delivery requirements of the Securities Act. 

        To
the extent required, the Ordinary Shares to be sold, the names of the selling
stockholders, the respective purchase prices and public offering prices, the names of any
agents, dealer or underwriter, any applicable commissions or discounts with respect to a
particular offer will be set forth in an accompanying prospectus supplement or, if
appropriate, a post-effective amendment to the registration statement that includes this
prospectus. 

        In
order to comply with the securities laws of some states, if applicable, the Ordinary
Shares may be sold in these jurisdictions only through registered or licensed brokers or
dealers. In addition, in some states the Ordinary Shares may not be sold unless they have
been registered or qualified for sale or an exemption from registration or qualification
requirements is available and is complied with. 

Page 15 of 16

        We
have advised the selling stockholders that the anti-manipulation rules of Regulation M
under the Exchange Act may apply to sales of Ordinary Shares in the market and to the
activities of the selling stockholders and their affiliates. In addition, to the extent
applicable, we will make copies of this prospectus (as it may be supplemented or amended
from time to time) available to the selling stockholders for the purpose of satisfying the
prospectus delivery requirements of the Securities Act. The selling stockholders may
indemnify any broker-dealer that participates in transactions involving the sale of the
Ordinary Shares against certain liabilities, including liabilities arising under the
Securities Act. 

        We
have agreed to indemnify the selling stockholders against liabilities, including
liabilities under the Securities Act and state securities laws, relating to the
registration of the Ordinary Shares offered by this prospectus. 

        We
have agreed with the selling stockholders to keep the registration statement of which this
prospectus constitutes a part effective until the earlier of (1) such time as all of the
Ordinary Shares covered by this prospectus have been disposed of pursuant to and in
accordance with the registration statement or (2) the date on which the Ordinary Shares
may be sold pursuant to Rule 144(k) of the Securities Act. 

Page 16 of 16

Exhibit C  

SERVICE AND SUPPLY
AGREEMENT 

        THIS
SERVICE AND SUPPLY AGREEMENT (this “Agreement”), dated as of ___________
__, 2006, is by and between SuperCom Ltd., an Israeli corporation
(“Seller”) and On Track Innovations Ltd., an Israeli corporation
(“Buyer”). 

        WHEREAS,
Buyer and Seller entered into an Asset Purchase Agreement of even date (the
“APA”), to which this Agreement is attached as a copy; and 

        WHEREAS,
as a condition to Closing of the transactions contemplated in the APA, Seller and Buyer
agreed to enter into this Agreement, that will set forth and define the parties’
mutual rights and undertakings with respect to the Existing Projects, the Potential
Projects (as defined hereinafter) and otherwise; 

        NOW,
THEREFORE, in consideration of the promises and the representations, warranties, covenants
and agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and intending to be legally
bound hereby, the parties hereby agree as follows: 

ARTICLE I 

Certain Definitions  

        As
used herein, and unless the context otherwise requires, the following terms (or any
variant in the form thereof) shall have the following respective meanings. Without
derogating from the aforesaid, and unless otherwise specifically defined herein or the
context otherwise clearly requires, capitalized terms used in this Agreement shall have
the meaning assigned to such terms in the APA. 

        “Existing
Contracts” those binding agreements entered into by Seller with respect to the
Existing Projects or in connection therewith a purchase order has been granted, prior to
the date of the APA and not assigned to Buyer, a list of which is attached hereto as
Annex B1, accompanied by the date of their expiration. 

        “Excluded
Project” means that certain project set forth in Annex C. 

        “Potential
Projects” means potential projects listed in Annex D hereto,
which are on the date of the APA, in the stage of working leads and not assigned to Buyer.
For the avoidance of doubt, any project not designated as an Existing Project on the date
of the APA, shall be deemed as a Potential Project, even if on the date of this Agreement,
the parties to such project have reached an agreement regarding the terms thereof, and
such project shall be added to Annex D (and the respective contracts covering such project
shall not be part of the Existing Contracts). 

ARTICLE II 

Existing Projects  

        Section
 2.1 Grant of License. For the avoidance of doubt, it is made clear
that the Existing Projects and the Excluded Project are not part of the Acquired Assets,
and the rights in and to the Existing Projects and the Excluded Project are not
transferred or assigned to Buyer. In order to enable Seller to perform and carry out the
Existing Projects and the Excluded Project, Buyer hereby grants Seller an irrevocable,
worldwide, non-exclusive, non-assignable and non-transferable license to utilize the
applicable SuperCom Intellectual Property transferred to Buyer as part of the Acquired
Assets for the purpose of carrying the Existing Projects and the Excluded Project (the
“License”). The License will be valid until the completion of each
Existing Project and Excluded Project, individually, at which time, it will automatically
expire with respect to that certain Existing Project or Excluded Project (except as
otherwise provided in Annex E); provided, however, that in the event
of termination of this Agreement for any reason (in whole or in part in connection with a
specific project), the Buyer will be entitled nevertheless to be paid a license fee equal
to 15% of the Direct Cost plus 15% of the Operational Cost as defined below of the
relevant project as set forth in Annex B (which obligation shall
survive the termination of this Agreement).  

        Section
2.2 Buyer Services. Buyer hereby undertakes as follows:  

        (a)               Buyer
hereby undertakes to: (i) supply all products and materials as required by
               Seller from time to time (which order shall be provided to Buyer at least
60                days in advance in writing and in such format agreed by Buyer and
Seller), and                (ii) to provide all services as required by Seller from time
to time (which                order shall be provided to Buyer at least 60 days in
advance in writing (or as                agreed otherwise in writing) and in such format
agreed to by Buyer and Seller).                It is agreed that Seller will continue to
act as the main contractor of all                Existing Projects, while all duties with
respect to performance of the Existing                Projects required by Seller as
aforesaid, will be carried out by Buyer as                sub-contractor pursuant to this
Agreement. Unless Buyer is otherwise requested                by Seller, Buyer shall be
dealing directly with customers in the Existing                Projects, except for the
Excluded Project. Seller shall have no right to use the                services of any
third party (including itself), (and as the date hereof has no                agreement
with any third party regarding the foregoing), other than the Buyer,                in
rendering and supplying the products, materials and services, Seller is
               required to provide under the Existing Contracts and the Excluded Project,
               provided that and as long as Buyer complies with and fulfills its
undertakings                under this Agreement to supply all products and materials and
to provide all                services.  

        Except
for the services to be provided by Buyer per Seller’s request pursuant to the
provisions of Section 2.2(a) above, Seller hereby undertakes to duly and timely perform
its undertakings and/or any of its other duties under the Existing Projects.  

        (b)Annex
F, attached hereto is a frame order of the estimated
               services, products and materials to be provided by Buyer to Seller until
               December 31st 2007. Annex G, attached
hereto is                a forecast of the estimated services, products and materials to
be provided by                Buyer to Seller for the year 2008. A frame order for the
year 2008 shall be                agreed upon by the parties by September 30th  2008.  

        (c)
               Deleted  

        (d)               In
consideration for the supply of products and materials, and for the services
               to be performed by Buyer under this Agreement and in consideration for the
               License, Seller will pay Buyer the fees set forth in Annex
               H. 

        (e)               Buyer
will invoice the Seller for the applicable consideration set forth in
               sub-section (d) above upon each performance of the service or shipment of
the                products and/or materials, respectively, and will accompany such
invoice with a                written detail of the services performed and/or the
products and/or materials                supplied, and their related costs.
Notwithstanding the aforesaid in this                sub-section (e), it is agreed that
until December 31, 2007, Buyer will invoice                Seller for Direct Cost:
Maintenance (as specified in Annex B) and for the                Operational Cost in
accordance with the terms set forth in Annex B.  

        (f)               Seller
will pay each respective invoice within 30 days from the end of each                month
of receipt of Buyer’s invoice against a proper tax invoice of Buyer.
               In addition, Seller will pay the applicable VAT on the date it is due to
be paid                by Buyer (against a proper tax invoice (‘Heshbonit Mas’)).  

        Section
2.3 Deleted.  

        Section
2.4 Expiration of and Changes to the Existing Contracts.  

        (a)
               Unless otherwise required by Buyer, Seller shall use its best efforts to
cause                the Existing Contracts and the Existing Projects to expire upon the
earliest                date possible according to the terms thereof, except of the
Excluded Project. If                Seller has a right to extend the term of such
Existing Contracts and the                Existing Projects, Seller shall not extend such
Existing Contract and Existing                Projects without Buyer’s prior written
consent. This sub section shall not                apply to the Excluded Project.  

        (b)
               Seller shall not make any change to any provision of the Existing
Contracts and                shall not take any actions in connection therewith not in
accordance with their                terms, without the prior written consent of Buyer.
This provision shall also                apply to the Excluded Projects, with respect to
the period until December                31st 2007 within the frame order
concluded between Seller and Buyer                with respect to this period, and when
frame order for the year 2008 is concluded                between the Seller and Buyer,
also for the year 2008 within the frame order                concluded between Seller and
Buyer with respect to this period; provided that                and only in the case that
such change has a material adverse affect on the                interests of Buyer under
this Agreement.  

        Section
 2.5 Renewal of Existing Contracts. Notwithstanding the foregoing,
after termination or expiration of each Existing Contract, Seller shall use its best
efforts to negotiate the renewal of the Existing Contract, unless otherwise instructed by
Buyer, and to assign all rights in and to the renewal Existing Contract to Buyer, (except
as otherwise provided in Annex E), after which such Existing
Contract shall be the sole property of Buyer.  

ARTICLE III 

Potential Projects  

        It
is hereby agreed that the following terms and conditions will apply to the Potential
Projects:  

        Section
 3.1 Assignment of rights. Seller hereby undertakes to use its best
efforts in order to assign all rights and interest in and to the Potential Projects to
Buyer, and subject to the approval and consent of all parties to each Potential Project
(other than the Seller) and the Buyer, all rights and interest in and to any Potential
Project, the assignment of which has been approved and consented to by all parties to
said Potential Project (other than the Seller) and by the Buyer, will be assigned to
Buyer as of the Closing Date.  

	
Subject
to Seller’s right to be paid certain Seller’s Fee (as defined in Section 3.6
below), Seller will have no rights derived from the Potential Projects, nor will Seller
have any obligation in connection with the Potential Projects assigned. 

        Section
3.2 Non-assigned Potential Projects. Potential Projects and all rights
related thereto which are not assigned to Buyer according to the terms of Section 3.1
hereinabove, will nevertheless be the sole property of Buyer as of the Closing, where
Seller shall formally act as the main contractor. Seller shall act in accordance with
Buyer’s instructions with regard to all Potential Projects that are not assigned,
including without limitations, withdraw from such bids as required by Buyer, revoke any
Potential Project in the event any Potential Project materializes to a binding purchase
order or contract, sign the binding formal contract as main contractor or otherwise, all
subject to the instructions of Buyer. Concurrently with the execution of any formal
contract by Seller with the party ordering the services under the Potential Project,
Seller and Buyer will enter into a back to back agreement according to which Buyer will
assume all of Seller’s undertakings under said formal contract entered into by
Seller, and will undertake to perform all such undertakings at its own cost and expense.  

        Section
3.3 No Guarantee. For the avoidance of any doubt, it is made clear that
no binding contracts have been signed with respect to any of the Potential Projects and
Seller does not guarantee that any Potential Projects, whether assigned or not, will
actually yield any purchase orders or binding contracts. Buyer will have no claim against
Seller in case any or all of the Potential Projects do not materialize into binding
agreement or purchase order.  

        Section
3.4 All services to be performed by Buyer with respect to each Potential Project will
be provided by Buyer on a “back to back” basis to all obligations of Seller
according to each Potential Project.  

        Section
3.5 Reserved  

        Section
3.6 In consideration of its undertakings under this Agreement with respect to the
non-assigned Potential Projects, Seller will be entitled to a fee equal to all income
minus the applicable third parties marketing expenses (if any) derived from the
non-assigned Potential Projects (the “Net Consideration”)
multiplied by 7.5% plus VAT against a proper tax invoice (‘Heshbonit Mas’) (the
“Seller’s Fee”). Seller’s Fee will be paid by deducting Seller’s
Fee plus VAT from the net consideration. Seller will transfer to Buyer the Net
Consideration, after deducting Seller’s Fee as aforesaid within five (5) business
days following receipt of the applicable payment.  

ARTICLE IIIA 

Additional Services,
Products and Materials 

        Section
3.1A It is hereby agreed that any additional services, products or materials requested
by Seller and not covered by the provisions of Article II and Article III above, as and if
agreed between Buyer and Seller, shall be performed by Buyer upon Seller’s request, .
In consideration of such services, Buyer will be entitled to be paid a fee equal to its
costs in performing the additional services, products or materials plus 50% of such costs,
to be paid within 30 days from the end of each month of receipt of Buyer’s invoice
against a proper tax invoice of Buyer. In addition, Seller will pay the applicable VAT on
Buyer’s due date (against a proper tax invoice (‘Heshbonit Mas’)). 

ARTICLE IV 

Indemnification  

        Section
4.1 Indemnification by Buyer.Buyer hereby undertakes to indemnify Seller and
agrees to hold it harmless from, any and all damages, claims, debts, actions,
assessments, judgments, losses, fines, fees, penalties and expenses (including, without
limitation, reasonable expenses of investigation and reasonable attorneys’ fees and
expenses in connection with any action, suit or proceeding) (collectively, “Losses”)
incurred or suffered by Seller arising out of:  

        (a)          Buyer’s
failure to duly and timely perform its undertakings and/or any of           its other
duties under any of the Existing Projects which were not assigned to           Buyer and
the Excluded Project; Provided that Buyer’s obligation to           indemnify Seller
under this Section 4.1(a) is limited to and will apply only to           its undertakings
to supply products and materials under the Existing Projects           and the Excluded
Project and to the amount of consideration paid to Buyer under           the term of
Article II of the Agreement and further provided that Buyer’s           failure does
not result from Seller’s failure to comply with its           undertakings under the
terms of the APA and this Service and Supply Agreement.;           and  

        (b)          Buyer’s
failure to duly and timely perform its undertakings and/or any of           its other
duties under any non-assigned Potential Project; provided that           Buyer’s
failure does not result from Seller’s failure to comply with           its
undertakings under the terms of the APA and this Service and Supply           Agreement.  

        (c)          Any
claims or complaints against Seller initiated by any third party with           respect
to the performance of any Existing Projects not assigned to Buyer and           the
Excluded Project or the Potential Projects resulting from Buyer’s           failure
as set forth in sub-sections (a) and (b) above.  

        (d)          It
is hereby agreed that Seller shall have no remedy against Buyer with regard           to
any breach or failure by Buyer and/or any Loss incurred by Seller other than
          those Losses covered by Sections 4.1(a), 4.1(b) and 4.1(c) above.  

        Section
4.2 The right of Seller and others to indemnification under this Section 4 shall
lapse upon termination of the applicable customer’s right to indemnification
pursuant to its agreement with Seller.  

        Section
4.3 Indemnification by Seller.Seller hereby undertakes to indemnify
Buyer and agrees to hold it harmless from, any and all Losses incurred or suffered by
Buyer arising out of (i) Seller’s failure to duly and timely perform its
undertakings and/or any of its other duties under any of the Existing Projects (other
than the Excluded Project) which were not assigned to Buyer pursuant to the terms of this
Agreement; and (b) any claims or complaints against Buyer initiated by any third party
with respect to the performance of any Existing Projects (other than the Excluded
Project) not assigned to Buyer resulting from Seller’s failure to perform its
undertakings and/or any of its other duties under any of the Existing Projects (other
than the Excluded Project) not assigned to Buyer pursuant to the terms of this Agreement;
provided that Seller’s failure does not result from Buyer’s failure to comply
with its undertakings under the terms of the APA and this Service and Supply Agreement.  

ARTICLE V 

Termination  

        Section
5.1 Termination. This Agreement may be terminated by:  

        (a) The
mutual written consent of Seller and Buyer; or  

        (b)          Seller,
with regard to the applicable non-assigned Existing Project (together           with the
applicable Existing Contracts) or the applicable non-assigned Potential           Project
(“Applicable Terminated Project”), provided it is not           then in
material breach of any of its obligations hereunder, if Buyer fails to           perform
in any material respect any covenant pursuant to this Agreement with           regard to
the Applicable Terminated Project when performance thereof is due or           Buyer
shall have breached in material respect its obligations with regard to the
          Applicable Terminated Project and does not cure the failure or breach within
          thirty (30) days after Seller delivers written notice thereof; or  

        (c)          Buyer,
with regard to the Applicable Terminated Project, provided it is not then           in
material breach of any of its obligations hereunder, if Seller fails to           perform
in any material respect any covenant pursuant to this Agreement with           regard to
the Applicable Terminated Project when performance thereof is due or           Seller
shall have breached in material respect its obligations with regard to           the
Applicable Terminated Project and does not cure the failure or breach within
          thirty (30) days after Buyer delivers written notice thereof.  

ARTICLE VI 

Miscellaneous  

        Section
6.1 Independent Contractors. Both Buyer and Seller agree that they
shall act as independent contractors in the performance of their undertakings hereunder
and that nothing contained herein shall create or be construed to create an
employer-employee relationship between the parties.  

        Section
6.2 Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and shall
become effective when one or more counterparts have been signed by each of the parties
and delivered to the other party.  

        Section
6.3 Governing Law; Consent to Jurisdiction. This Agreement shall be
governed by and construed in accordance with the laws of the State of Israel without
reference to the choice of law principles thereof. Buyer and Seller consent to and hereby
submit to the exclusive jurisdiction of the suitable court in Tel-Aviv Jaffa.  

        Section
6.4 Cooperation. In performing their undertakings under this Agreement, Buyer
and Seller will adhere to any reasonable requests of the other party with respect to the
performance of each other’s duties. Any and all material written communication
provided to Seller and sent by Seller in connection with the Existing Projects, Existing
Contracts and the Potential Projects, shall be sent to Buyer upon receipt or delivery
thereof.  

        Section
6.5 Entire Agreement. Except as provided in the APA, this Agreement
(including agreements incorporated by reference herein), the Disclosure Schedule and the
Exhibits hereto contain the entire agreement between the parties with respect to the
subject matter hereof and there are no agreements, understandings, representations or
warranties between the parties other than those set forth or referred to herein or
therein. For the avoidance of doubt, the indemnification provision in the APA shall not,
in any way, apply to this Agreement.  

        Section
6.6 Notices. All notices hereunder shall be made in accordance with the provisions
of the APA.  

        Section
6.7 Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns;
provided, however, that no party hereto will assign its rights or delegate its
obligations under this Agreement without the express prior written consent of each other
party hereto, except that either party may assign this Agreement to any Entity that
succeeds to substantially all of such party’s assets and liabilities, provided,
however, that if such assignor is the Seller, at the time of such assignment, Seller is
permitted to assign, the Existing Projects, the Existing Contracts and the Potential
Projects not assigned to Buyer at such time.  

        Section
6.8 Headings: Definitions. The section and article headings contained in this
Agreement are inserted for convenience of reference only and will not
affect the meaning or interpretation of this Agreement. All
references to Sections or Articles contained herein mean Sections or
Articles of this Agreement unless otherwise stated.  

        Section
6.9 Amendment. This Agreement may not be amended, modified, superseded,
canceled, renewed or extended except by a written instrument signed by the party to be
charged therewith.  

        Section
6.10 Waiver; Effect of Waiver. No provision of this Agreement may be
waived except by a written instrument signed by the party waiving compliance. No waiver
by any party hereto of any of the requirements hereof or of any of such party’s
rights hereunder shall release the other parties from full performance of their remaining
obligations stated herein. No failure to exercise or delay in exercising on the part of
any party hereto any right, power or privilege of such party shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, power or privilege
preclude any other or further exercise thereof or the exercise of any other right, power
or privilege by such party.  

        Section
6.11 Interpretation; Absence of Presumption  

        (a)              For
the purposes hereof, (i) the terms “hereof,” “herein”          and
“herewith” and words of similar import shall, unless otherwise
          stated, be construed to refer to this Agreement as a whole (including all of
the           Schedules hereto) and not to any particular provision of this Agreement,
and           Article, Section, paragraph and Schedule references are to the Articles,
          Sections, paragraphs and Schedules to this Agreement unless otherwise
specified,           (ii) the word “including” and words of similar import when
used in           this Agreement means “including, without limitation,” unless
the           context otherwise requires or unless otherwise specified, (iii) the word
          “or” shall not be exclusive, (iv) provisions shall apply, when
          appropriate, to successive events and transactions and (v) all references to
any           period of days shall be deemed to be to the relevant number of calendar
days.  

        (b)              This
Agreement shall be construed without regard to any presumption or rule
          requiring construction or interpretation against the party drafting or causing
          any instrument to be drafted.  

        Section
6.12 Remedies. No remedy under this Agreement or at law or in equity
shall provide for or permit the payment of multiple, exemplary, punitive or consequential
damages or any equitable equivalent thereof or substitute therefor, and the burden shall
be on the party claiming loss to show actual loss in the amount claimed. Except for the
right for indemnification, Seller and Buyer shall have no other or further remedy against
each other under this Agreement with respect to the subject matter hereof.
Notwithstanding the foregoing, and in addition thereto, Buyer shall have a right for
remedy against Seller pursuant to the terms of this Agreement which claim is limited to
the Excluded Projects only.  

        Section
6.13 Severability. In the event that any provision of this Agreement,
or the application of any such provision to any Person or set of circumstances, shall be
determined to be invalid, unlawful, void or unenforceable to any extent, the remainder of
this Agreement, and the application of such provision to Persons or circumstances other
than those as to which it is determined to be invalid, unlawful, void or unenforceable,
shall not be impaired or otherwise affected and shall continue to be valid and
enforceable to the fullest extent permitted by law.  

[The remainder of this
page has been intentionally left blank.]  

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on
their behalf as of the date first written above. 

			ON TRACK INNOVATIONS LTD.

By: ____________________________________

Name: 
Title:

			SUPERCOM LTD.

By: ____________________________________

Name:
Title:

Exhibit D  

IRREVOCABLE PROXY  

        The
undersigned, shareholder (“Shareholder”) of On Track Innovations Ltd., an
Israeli company (the “Company”), hereby irrevocably (to the fullest
extent permitted by law) appoints the Company’s Chairman on behalf of the Board of
Directors, or whom the Company’s Board of Directors will instruct, as the sole
attorneys-in-fact and proxies of the undersigned with full power of substitution and
re-substitution, to vote and put into effect all voting and related rights with respect
to, and to grant consent or approval in respect of (in each case, to the full extent that
the undersigned is entitled to do so), 2,827,200 ordinary shares nominal value NIS 0.1 per
share, of the Company (each – a “Share”, and collectively –
“Shares”) issued to the undersigned pursuant to a certain Assets Purchase
Agreement by and between the Company and the undersigned, dated as of November 7 2006 (the
“APA”). 

        Any
and all prior proxies heretofore given by the undersigned with respect to any of the
Shares are hereby revoked and the undersigned hereby covenants and agrees not to grant any
subsequent proxies with respect to any Shares. 

        This
Proxy is irrevocable (to the fullest extent permitted by law) and is granted as part of
the APA. 

        The
attorneys-in-fact and proxies named above are hereby authorized and empowered by the
undersigned to act as the undersigned’s attorney-in-fact and proxy to vote each Share
and to exercise all voting, consent and similar rights of the undersigned with respect to
the Shares (including, without limitation, the power to execute and deliver written
consents), at every annual, special, adjourned or postponed meeting of the shareholders of
the Company and in every written consent in lieu of such meeting until the sale or
transfer of such Share to a third party who is not an Affiliate of the undersigned in an
arm’s length transaction, as such term is defined in the APA (the
“Termination Date”). Immediately following the Termination Date in
respect of a Share, the attorneys-in-fact and proxies named above may not, with respect to
such Share, exercise this Proxy with respect to any matter. 

        Any
obligation of the undersigned hereunder shall be binding upon the permitted successors and
assigns of the undersigned until the Termination Date. 

        In
the event the Shareholder or its Affiliate(s), as such term is defined in the APA, is an
officer or director of the Company, nothing in this Proxy shall be construed as preventing
or otherwise affecting any actions taken by the Shareholder in its capacity as an officer
or director of the Company or in any of its subsidiaries or from fulfilling the
obligations of such office (including without limitation, the performance of obligations
required by the fiduciary obligations of Shareholder acting solely in his or her capacity
as an officer or director). 

        This
Proxy shall terminate, and be of no force or effect, immediately following the Termination
Date. 

			SuperCom Ltd.

By: ____________________

Title: ___________________
Date: ___________________

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