RULES OF THE COMPETITION

1. The organizer and partners
2. Purpose of contest
3. Participants
4. Phases and dates
5. Jury
6. Prize money
7. Support in new business start-ups or development
8. Protection of submitted projects
9. Other rules

1. The organizer and partners

For the third year running, Axalto is organizing a Worldwide USB smart card developer contest, in partnership for the 2005 edition of the contest with Sun Microsystems, Inc. and ST Microelectronics.

2.1 The field concerned is e-gate smart cards (Axalto USB smart cards) for e-business Security and the Java applications used for these cards.

The e-gate Open 2005 is a contest which aims at proposing and developing (proof of concept)
innovative solutions, using the Java/Cyberflex e-gate smart cards, such as :
Ø On-line Business to Consumer applications / services
Ø Solutions and implementation schemes to enable on-line companies securing clients' accesses to their gateways and services
Ø Citizen and everyday life applications

The possible fields of research include:

Internet Access Solution
• Digital Identity Management Solution based on 2 factor authentication (Liberty Alliance)
• Wireless Network Access (WIFI, Wimax, 3G)

Internet on line Value-added Services (Corporate services)
• Roaming and VPN (Virtual private network)
• Voice Over IP (VoIP)

Internet on line Value-added Services (Consumer)
• Communication (Video Conference, IP telephony)
• e-commerce and Banking Services (e-banking, MODS Mastercard Object Data Storage, gambling, e-broking)
• Entertainment (VOD, games, home network)
• Citizens Services (e-voting, electronic)ignature)

2.2 This list, however, is not exhaustive and candidates are free to choose another field of research provided it lies within the scope of 2.1

2.3 When developing their project, the candidates must make sure that their applets have the following characteristics: Innovation, Marketing Interest, Easy Implementation, User-friendliness, Compactness, Cost Effectiveness, Security, Easy Deployment on the market, etc. The selection will be based on the above characteristics by the jury.


3. Participants

3.1 Participation in the contest is not subject to payment of application fees. Any person
who enrols in the contest will be known as a " candidate ".

3.2 Three categories of candidates will be accepted, with a maximum of three people per candidate team:
- scientific engineering schools and universities
- business schools and
- companies specialized in electronics, computer sciences or Java language or other software companies or integrators ("Software Houses")
Scientific engineering schools and universities and business schools : application is to be made by their directors and they shall present one team of students (including university researchers) supervised by members of the teaching profession.
Software Houses: application is to be made by their authorized representative and they shall present one team of employees supervised by one team member designated as "team leader".

3.3 Companies doing business in the field of design and/ or manufacturing of smart cards, including their employees, their subcontractors or partners, including their employees are not allowed to take part to the contest.

3.4 The following are also not eligible to enter the contest: any entity or employees of Axalto group and any entity being a sponsor and/or member of the contest jury and any entity of their organization including their employees.


4. Phases and dates

4.1 Entry phase, 14th June to 10th December 2004
Candidates enter the contest by filing in the Entry Form, to the exclusion of any other document. It will be sent by Axalto or its local subsidiaries (outside France) on request. It can also be found on the website:
www.egateopen.axalto.com

The Entry Form includes the following:
- The candidate's details: category, origin (of the school or company), members of the candidate team (jobs, specialities, past achievements, patents, diplomas, etc.), nationality of each team member.
- The candidate's project which may concern the areas listed in 2.2 or not. It describes what the candidate wishes to achieve, the different phases of the project, the resources at their disposal, the technologies that will be used.
- A letter of motivation explaining why the candidate wishes to participate in the contest.
The Entry Form must reach Axalto or its local subsidiary, as will be indicated by Axalto to the candidates concerned, by letter or email by 10th December 2004 at the latest.

4.2 Selection phase, 11th to 20th December 2004
Axalto examines the Entry Forms and selects the candidates that it considers
capable of researching and presenting a project. There is no theoretical limit on the number of candidates selected; only the quality of the Entry Forms and the technological and industrial interest they represent will guide Axalto in making its selection.
The selected candidates will be announced in Paris, on 20 December 2004. Each candidate selected will receive an Axalto Java/Cyberflex e-gate development kit to be used solely for the participation to this contest.

4.3 Development phase, 21st December 2004 to 2nd May 2005
The selected candidates will develop their applications (applets) or solutions during this phase and receive coaching from Axalto via a hotline run by a person specifically appointed to help and guide them throughout the project. The project will be submitted in the form of an 8-page document (maximum), in English, in A4 format, either in printed form or in a data file sent by email. The source code/ implementation scheme / solution architecture are to be communicated at the same time. Another copy of the project, in the candidate's mother tongue, may also be provided (8 pages maximum). The project document is to reach Axalto by 2nd May 2005 at the latest. This date will be final and no exceptions will be granted. A copy of all the project documents will be filed by Axalto on 15th May 2005 at the latest with Etude Michel CABOUR, Bailiff, 160, rue du Temple 75003 PARIS France.

4.4 Jury examination phase, from 10th May to 19th May 2005
The members of the jury will examine all the projects presented and select the 6 best entries for the final prize list. If a candidate or team has submitted several projects, only one project can be selected to be among the finalists.

The 6 finalist teams will be invited at Javaone 2005 end of June 2005 in San Francisco (USA), with a maximum of two people per candidate team.

They will be individually informed of their participation on 19th May 2005.
The projects proposed by the candidates who will not be selected will be returned to the owners.

4.5 JavaOne 2005 from 27th to 30th June 2005 in San Francisco (USA) (dates of the exhibition to be confirmed)
The 6 finalist teams (with a maximum of 2 people per team per candidate team) will present their projects in public on the Axalto booth at the Javaone 2005 exhibition from 27th to 30th June 2005 in San Francisco (USA).
On 27th June 2005, each of the candidate teams shall have 15 to 20 minutes to present their work to the Jury and demonstrate their application. All the candidates will have the same resources at their disposal to present their project. They will receive written instructions at the beginning of June 2005 so that they can prepare their presentation under the best possible conditions. The winners will be announced on 28th June 2005 during the gala evening to be attended by the participants and VIPs from the IT security and e-business sector.
The candidates must take in charge the necessary formalities such as valid passports and visas. If none of the members of one finalist teams does not have the required visa two weeks before the exhibition, this team will be excluded from the final and Axalto will be allowed to contact a back-up team.

4.6 All the finalists will benefit from the publicity campaign organized by Axalto for the contest.

4.7 The finalists might be offered the possibility of working in collaboration with
Axalto to finalize their applets. The form of their collaboration would be
determined at a later date e.g. service agreement, subcontractor's agreement, employment, start-up assistance, etc. See 7.1. and 7.2.


5. The jury

5.1 The jury will consist of major figures from the fields of IT security, technology, industry and standardization.

5.2 The jury should consist in about 16 members (VIP's):
· one PKI /Electronic Signature representative,
· up to two ISPs
· up to two Software or Hardware manufacturers
· up to four on-line companies / retailers
· up to four entertainment company
· one banking institution
· one information provider
· one journalist
· one representative from Axalto
· one representative from SUN
· one representative from ST

5.3 The chairman of the jury will be elected by its members. During deliberation, he/she shall have the casting vote. The jury shall fix its own rules (simple or absolute majority, number of ballots, etc.) to select the winners.


6. Prize money

6.1 30.000 Euros in prize money will be awarded.

6.2 The prize money will be broken down as follows:
- GOLD e-gate Open 2005 Award:10 000 Euros
- SILVER e-gate Open 2005 Award: 8 000 Euros
- BRONZE e-gate Open 2005 Award: 6 000 Euros
- Sponsors Awards (3): 2 000 Euros

6.3 The Top Awards, that is to say Gold, Silver and Bronze Awards (one individual per team only) will be invited by Axalto to a trip to Silicon Valley in July 2005 (dates to be determined). The candidates must take in charge the necessary formalities such as valid passports and visas. The candidates are in charge of their round trip ticket from their country to the Silicon Valley.

6.4 Moreover, the 6 finalist teams will benefit from :
- free demos at Javaone 2005 exhibition associated with communication on the winners in PRs.
- marketing support

6.5 The prizes will be awarded when the results are announced on 28th June 2005.


7. Possible support in new business start-ups or development

7.1 Axalto, the organizer of e-gate Open 2005, is willing to increase spin-offs from innovations developed as part of the contest and to help, to the extent possible, their authors. Axalto may offer the winners the possibility of joining its incubator system to finalize their projects and develop a corresponding business plan.

7.2 The candidates of projects selected by Axalto may, if they wish, contact Axalto to ask for and study with Axalto any possible help in starting up new company, receiving backing, or benefiting from another form of collaboration with Axalto.


8. Protection of submitted projects

8.1 The candidates will retain full ownership and all attached rights or titles on or to the projects submitted.

8.2 Candidates may carry out any formalities they believe necessary or useful to protect their work in the geographic location(s) of their choice.

8.3 Being candidates or winners awarded any of the prizes in the finals does not in anyway bind the candidates, including any member of their team, or any parties to the contest to any subsequent collaboration whatsoever.


9. Other rules

9.1 The candidates, including any member of their team, expressly authorize Axalto, its affiliated companies and any sponsor of the contest or member of the jury to use their name, including name and image of the individuals member of their team, by citation, mention, reproduction or representation for making reference to and promotion of the contest, in every media and support, without limitation in time or territory.

9.2 Participation in the contest automatically means that the candidates (including any individual member of a team) adhere to all the present rules of competition. No appeal may be made against the decisions made by Axalto and the jury.

9.3 Any dispute in connection with the existence, interpretation or implementation of these rules shall be settled by amicable settlement, failing which the dispute shall be submitted to the competent French court. The rules of this contest are subject and will be interpreted in accordance with French law.

These rules are filed with:

ETUDE MICHEL CABOUR
Huissier de justice,
160, rue du Temple
75003 PARIS FRANCE