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<SEC-DOCUMENT>0001178913-09-000793.txt : 20090401
<SEC-HEADER>0001178913-09-000793.hdr.sgml : 20090401
<ACCEPTANCE-DATETIME>20090401163316
ACCESSION NUMBER:		0001178913-09-000793
CONFORMED SUBMISSION TYPE:	F-3/A
PUBLIC DOCUMENT COUNT:		11
FILED AS OF DATE:		20090401
DATE AS OF CHANGE:		20090401

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BOS BETTER ONLINE SOLUTIONS LTD
		CENTRAL INDEX KEY:			0001005516
		STANDARD INDUSTRIAL CLASSIFICATION:	COMPUTER COMMUNICATIONS EQUIPMENT [3576]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		F-3/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-152020
		FILM NUMBER:		09723830

	BUSINESS ADDRESS:	
		STREET 1:		20 FREIMAN STREET
		CITY:			RISHON LEZION
		STATE:			L3
		ZIP:			75100
		BUSINESS PHONE:		011-972-3-954-1000

	MAIL ADDRESS:	
		STREET 1:		20 FREIMAN STREET
		CITY:			RISHON LEZION
		STATE:			L3
		ZIP:			75100
</SEC-HEADER>
<DOCUMENT>
<TYPE>F-3/A
<SEQUENCE>1
<FILENAME>zk85891.htm
<TEXT>

<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        F:\EDGAR Filing\BOS better online solutions Ltd\85891\a85891.eep -->
     <!-- Control Number: 85891                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3/A                                                            -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3/A</TITLE>
</HEAD>
<BODY>



<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
    <TR>
      <TD vAlign=top><P><FONT size=2> As filed with the Securities and Exchange Commission on April 1, 2009 </FONT></P></TD>
    </TR>
    <TR>
      <TD vAlign=top><P align=right><FONT size=2> Registration No. 333-152020 </FONT></P></TD>
    </TR>
</TABLE>
<HR style="MARGIN-TOP: -5px" width="100%" noShade SIZE=4>
<HR style="MARGIN-TOP: -10px" width="100%" noShade SIZE=1>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>
  <font size="4">UNITED STATES<br>
  </font></B></FONT><FONT face="Times New Roman, Times, Serif" size=4><B>SECURITIES AND EXCHANGE COMMISSION<br>
  </B></FONT><FONT face="Times New Roman, Times, Serif" size=2>Washington, D.C. 20549</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><HR align=center width="30%" color="#808080" noShade SIZE=1></td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=4><B> AMENDMENT NO. 1 <br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=4><B> TO <br>
    FORM F-3</B></FONT></td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2>REGISTRATION STATEMENT<br>
    </FONT><FONT face="Times New Roman, Times, Serif" size=2>UNDER THE SECURITIES ACT OF 1933</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><HR align=center width="30%" color="#808080" noShade SIZE=1></td>
  </tr>
</table>
<P align=center><FONT face="Times New Roman, Times, Serif" size=5><B>B.O.S BETTER ONLINE SOLUTIONS LTD.<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><I>(Exact name of Registrant as specified in its charter)</I></FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
  <TR align="center">
    <TD width="45%" vAlign=top><FONT size=2 face="Times New Roman"><B>Israel</B></FONT></TD>
    <TD width="10%" vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD width="45%" vAlign=top><FONT size=2 face="Times New Roman"><B>Not Applicable</B></FONT></TD>
  </TR>
  <TR align="center">
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR align="center">
    <TD vAlign=top><P align=center><FONT size=2 face="Times New Roman"><I>(State or other jurisdiction of<BR>
      incorporation or organization)</I></FONT></P></TD>
    <TD vAlign=top><P align=center><font face="Times New Roman"><font size="2"></font></font></P></TD>
    <TD vAlign=top><P align=center><FONT size=2 face="Times New Roman"><I>(I.R.S. Employer<BR>
      Identification No.)</I></FONT></P></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>20 Freiman Street<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Rishon LeZion, 75100, Israel<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>&nbsp;</B>(+972) 3-954-1000<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2><I>(Address and Telephone Number of Registrant&#146;s principal executive offices)</I></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Summit Radio Corp.<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>1008 Teaneck Road, Teaneck<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>New Jersey 07666<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Tel:&nbsp; 201-837-3644<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Facsimile:&nbsp; 201-833-1164<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2><I>(Name, address and telephone number of agent for service)</I></FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
  <TR>
    <TD vAlign=top colSpan=3><HR align=center width="30%" color="#808080" noShade SIZE=1>
    </TD>
  </TR>
  <TR>
    <TD vAlign=top colSpan=3><P align=center><FONT size=2>Copies To:</FONT></P></TD>
  </TR>
  <TR>
    <TD width="45%" vAlign=top><P align=center><FONT size=2><B>Brian Brodrick, Esq.</B></FONT></P></TD>
    <TD width="10%" vAlign=top><P align=center>&nbsp;</P></TD>
    <TD width="45%" vAlign=top><P align=center><FONT size=2><B>Shlomo Landress, Adv.</B></FONT></P></TD>
  </TR>
  <TR>
    <TD vAlign=top><P align=center><FONT size=2><B>Phillips Nizer LLP</B></FONT></P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=top><P align=center><FONT size=2><B>Amit, Pollak, Matalon &amp; Co.</B></FONT></P></TD>
  </TR>
  <TR>
    <TD vAlign=top><P align=center><FONT size=2><B>666 Fifth Avenue</B></FONT></P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=top><P align=center><FONT size=2><B>NITSBA Tower, 17 Yitzhak Sadeh Street</B></FONT></P></TD>
  </TR>
  <TR>
    <TD vAlign=top><P align=center><FONT size=2><B>New York, New York 10103</B></FONT></P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=top><P align=center><FONT size=2><B>Tel Aviv 67775, Israel</B></FONT></P></TD>
  </TR>
  <TR>
    <TD vAlign=top><P align=center><FONT size=2><B>(212) 841-0700</B></FONT></P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=top><P align=center><FONT
size=2><B>972-3-568-9000</B></FONT></P></TD>
  </TR>
</TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Approximate date of commencement of proposed sale to the public</B>: From time to time after this registration statement becomes effective.</FONT></P>
<hr size="1" noshade  style="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the only securities being registered on this Form
are being offered pursuant to dividend or interest reinvestment plans, please check the following
box. <font face="Wingdings">o</font> </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the securities being registered on this Form
are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act
of 1933, please check the following box. <font face="Wingdings">x</font> </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is filed to register additional securities
for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier effective registration statement
for the same offering. <font face="Wingdings">o</font></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is a post-effective amendment filed pursuant
to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering. <font face="Wingdings">o</font></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is a registration statement pursuant to
General Instruction I.C. or a post-effective amendment thereto that shall become effective upon filing
with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box. <font face="Wingdings">o</font></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is a post-effective amendment to a registration
statement filed pursuant to General Instruction I.C. filed to register additional securities or additional
classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box. <font face="Wingdings">o</font></FONT></P>
<HR align=center width="30%" color="#808080" noShade SIZE=1>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>CALCULATION OF REGISTRATION FEE</B></FONT></P>

<table width="100%" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td align="center"><font size="1" face="Times New Roman, Times, serif"> <strong> Title of Each Class <br>
      of Securities to be Registered </strong> </font></td>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2" align="center"><font size="1" face="Times New Roman, Times, serif"> <strong>Amount to be<br>
      Registered(2)</strong> </font></td>
    <td align="center"><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2" align="center"><font size="1" face="Times New Roman, Times, serif"> <strong> Proposed <br>
      Maximum <br>
      Offering Price <br>
      Per Share(3) </strong> </font></td>
    <td align="center"><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2" align="center"><font size="1" face="Times New Roman, Times, serif"> <strong> Proposed <br>
      Maximum <br>
      Aggregate <br>
      Offering Price </strong> </font></td>
    <td align="center"><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2" align="center"><font size="1" face="Times New Roman, Times, serif"> <strong><br>
      Amount of <br>
      Registration <br>
      Fee </strong> </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><HR SIZE=1 COLOR=BLACK NOSHADE></td>
    <td>&nbsp;</td>
    <td colspan="2"><HR SIZE=1 COLOR=BLACK NOSHADE></td>
    <td>&nbsp;</td>
    <td colspan="2"><HR SIZE=1 COLOR=BLACK NOSHADE></td>
    <td>&nbsp;</td>
    <td colspan="2"><HR SIZE=1 COLOR=BLACK NOSHADE></td>
    <td>&nbsp;</td>
    <td colspan="2"><HR SIZE=1 COLOR=BLACK NOSHADE></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif"> <strong> Primary Offering: </strong> </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="1%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="1%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="1%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="1%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;Ordinary Shares, nominal value <br>
&nbsp;&nbsp;&nbsp;NIS 4.00 per share (1) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;Warrants (1) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;Units (1) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal </font></td>
    <td width="1%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="5%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="5%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 6,250,000 </font></td>
    <td width="5%" align="left"><font size="2" face="Times New Roman, Times, serif"> (4) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 245.63 </font></td>
    <td width="2%" align="left"><font size="2" face="Times New Roman, Times, serif"> (4) </font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif"> <strong> Secondary Offering: </strong> </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;Ordinary Shares, nominal <br>
&nbsp;&nbsp;&nbsp;value NIS 4.00 per share </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 1,194,982 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> (5) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 1.47 </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 1,756,623 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 69.03 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;Ordinary Shares, nominal<br>
&nbsp;&nbsp;&nbsp;value NIS 4.00 per share </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 1,557,067 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> (5) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 0.51 </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 794,104 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 44.31 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;Ordinary Shares, nominal<br>
&nbsp;&nbsp;&nbsp;value NIS 4.00 per share </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 541,814 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> (6) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 2.76 </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 1,495,407 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 58.77 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;Ordinary Shares, nominal<br>
&nbsp;&nbsp;&nbsp;value NIS 4.00 per share </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 408,164 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> (6) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 1.475 </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 602,042 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 33.60 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;Ordinary Shares, nominal<br>
&nbsp;&nbsp;&nbsp;value NIS 4.00 per share </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 370,370 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> (6) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 1.60 </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 592,592 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 33.07 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 11, 490, 768 </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 484.41 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> (7) </font></td>
  </tr>
</table>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
  <TD width=5% vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>(1)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>These offered securities may be sold separately, together or as units.</FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> (2) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> Such indeterminate number or amount of Registrant&#146;s ordinary shares, warrants, or units as may,
from time to time, be issued at indeterminate prices. In no event will the aggregate maximum offering
price of all securities issued pursuant to this registration statement on behalf of the Registrant
exceed $6,250,000. In addition, up to 4,072,397 ordinary shares of common stock may be sold from
time to time pursuant to this registration statement by the selling shareholders named herein. Pursuant
to Rule 416 of the Securities Act of 1933, as amended, this Registration Statement also includes
additional ordinary shares issuable upon stock splits, stock dividends or similar transactions. </FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> (3) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>


     Estimated  solely for the purpose of calculating  the  registration  fee in accordance  with Rule
     457(c)  under the  Securities  Act,  based upon the average of the high and low sales  prices of
     the  Registrant's  ordinary  shares on the NASDAQ  Global  Market on June 27,  2008 of $1.47 (in
     respect of 1,194,982 shares registered pursuant to the original  Registration  Statement on Form
     F-3) and $0.51 on March 26, 2009 (in respect of  1,557,067  shares  registered  pursuant to this
     Amendment No. 1 to the Form F-3).




</FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
  <TD width=5% vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>(4) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Pursuant to Rule 457(o) under the Securities Act of 1933, which permits the registration fee to be
calculated on the basis of the maximum offering price of all the securities listed, and Instruction
IIC of Form F-3, the table does not specify by each class information as to the amount to be registered,
proposed maximum offering price per unit or proposed maximum aggregate offering price. The aggregate
public offering price of securities sold by the Registrant will not exceed $6,250,000 (see Note 2
above).</FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>(5) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents ordinary shares registered for resale by the selling shareholders. </FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> (6) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> Represents shares issuable upon exercise of warrants that were issued to the selling shareholders.
The exercise price&nbsp;&nbsp;for 541,814 warrants is $2.76 per ordinary share, for 408,164 warrants
is $1.475 per ordinary share and for 370,370 warrants is $1.60 per ordinary share. </FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> (7) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> Includes $373.43 that was previously paid in connection with the filing of the original Registration
Statement. </FONT></TD></TR></TABLE>

<P><FONT face="Times New Roman, Times, Serif" size=2><B>The Registrant hereby amends this Registration Statement on such date or dates as may be necessary
to delay its effective date until the Registrant shall file a further amendment which specifically
states that this Registration Statement shall thereafter become effective in accordance with Section
8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on
such date as the Commission, acting pursuant to said Section 8(a), may determine</B>.</FONT></P>
<p align=center><font size=2> </font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><P><font size="2" face="Times New Roman"><B>THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. THESE SECURITIES MAY NOT BE SOLD UNTIL THE REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED. </B></font></P></TD>
  </TR>
</TABLE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr style="MARGIN-TOP: -10px" width="100%" noshade size=1></td>
  </tr>
  <tr>
    <td><hr style="MARGIN-TOP: -5px" width="100%" noshade size=4></td>
  </tr>
</table>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2> SUBJECT TO COMPLETION, DATED April 1, 2009 </FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2> $6,250,000 and 4,072,397 of our Ordinary Shares Offered by Selling Shareholders </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>PROSPECTUS&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>B.O.S BETTER ONLINE SOLUTIONS LTD.</B></FONT></P>
<HR align=center width="40%" color="#808080" noShade SIZE=1>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Through this prospectus, we may periodically offer:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>(1)&nbsp; our ordinary shares,</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>(2)&nbsp; our warrants, and</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>(3)&nbsp; our units.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> This prospectus provides you with a general description of the securities that we may offer. Each time
we sell securities, we will provide a prospectus supplement that will contain specific information
about the terms of the offering. The prospectus supplement may also add, update or change information
contained in this prospectus. You should read both this prospectus and any prospectus supplement,
together with additional information described below under the headings &#147;Where You Can Find
More Information,&#148; and &#147;Incorporation of Certain Documents by Reference&#148; before purchasing
any of our securities. BOS has not sold any securities pursuant to Instruction I.B.5. of Form F-3
during the period of 12 calendar months immediately prior to the date hereof. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>To the extent there is a conflict between the information contained in this prospectus and the prospectus
supplement, you should rely on the information in the prospectus supplement, provided that if any
statement in one of these documents is inconsistent with a statement in another document having a
later date, for example, a document incorporated by reference in this prospectus or any prospectus
supplement, the statement in the document having the later date modifies or supersedes the earlier
statement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> In addition, the selling shareholders identified in this prospectus, may offer to sell up to 4,072,397
ordinary shares purchased in private placement transactions in 2007 and 2008, including up to 1,320,348
ordinary shares issuable to the selling shareholders upon the exercise of warrants that were issued
in private placement transactions. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>


BOS is filing the  registration  statement  of which this  prospectus  is a part at this time to fulfill a
contractual obligation to do so, which the Company undertook at the time of the private placements.



</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> We will not receive any of the proceeds from the sale of the ordinary shares by the selling shareholders
other than the exercise price payable to us upon the exercise of the warrants held by the selling
shareholders. We have agreed to bear all of the expenses in connection with the registration and
sale of these ordinary shares other than underwriting discounts and sales commissions. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>




Our ordinary  shares are traded on the NASDAQ  Global  Market under the symbol  &#147;BOSC&#148; and on the Tel Aviv
Stock Exchange  (&#147;TASE&#148;)  under the symbol &#147;BOSC&#148;.  On March 26, 2009, the last reported sale price of our
ordinary  shares on the NASDAQ  Global  Market was $0.51 per share and on the TASE was  NIS2.27 per share.
You are  urged to obtain  current  market  quotations  for the  ordinary  shares.  In  February  2009,  we
requested the TASE to delist our ordinary  shares from trading,  and following this request,  the last day
of trading of our ordinary share on the TASE shall be May 10, 2009.  See &#147;Recent Developments&#148;.




</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The securities issued under this prospectus may be offered directly or through underwriters, agents
or dealers. The names of any underwriters, agents or dealers will be included in a supplement to
this prospectus.</FONT></P>
<p align=center><font size=2> </font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>You should read both this prospectus and any prospectus supplement, together with the additional information
described under the heading &#147;Incorporation of Certain Documents by Reference&#148; before you
decide to invest in our ordinary shares. </FONT></P>

<P><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>INVESTING IN OUR ORDINARY SHARES INVOLVES A HIGH DEGREE OF RISK. SEE &#147;RISK FACTORS&#148; BEGINNING
ON PAGE <U>5</U>  OF THIS PROSPECTUS TO READ ABOUT FACTORS YOU SHOULD CONSIDER BEFORE PURCHASING OUR ORDINARY SHARES.
</B> </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither the Securities and Exchange Commission nor any state securities commission or the Israeli Securities
Authority has approved or disapproved of these securities or determined if this prospectus is truthful
or complete. Any representation to the contrary is a criminal offense</B>.</FONT></P>

<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><HR align=center width="40%" color="#808080" noShade SIZE=1></td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2> The date of this prospectus is ________, 2009 </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>TABLE OF CONTENTS </B></FONT></P>

<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD align="center" vAlign=top><FONT face="Times New Roman" size=1><B> Item </B></font></TD>
    <TD align="center" vAlign=top><font size="1" face="Times New Roman">&nbsp;</font></TD>
    <TD colspan="3" align="center" vAlign=top><FONT face="Times New Roman" size=1><B> Page </B></font></TD>
  </TR>
  <TR>
    <TD vAlign=top><HR align=center width="100%" color="#000000" noShade SIZE=1></TD>
    <TD width="5%" align="center" vAlign=top><font size="1" face="Times New Roman">&nbsp;</font></TD>
    <TD colspan="3" align="center" vAlign=top><HR align=center width="100%" color="#000000" noShade SIZE=1></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="1" face="Times New Roman">&nbsp;</font></TD>
    <TD align="center" vAlign=top><font size="1" face="Times New Roman">&nbsp;</font></TD>
    <TD align="center" vAlign=top><font size="1" face="Times New Roman">&nbsp;</font></TD>
    <TD align="center" vAlign=top><font size="1" face="Times New Roman">&nbsp;</font></TD>
    <TD align="center" vAlign=top><font size="1" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a101"> Prospectus Summary </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
    <TD height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 3 </font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a102"> The Offering </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 4 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a103"> Risk Factors </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 5 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a104"> Forward-Looking Statements </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 16 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a105"> Recent Developments </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 17 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a106"> Capitalization </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 18 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a107"> Price Range of Ordinary Shares </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 19 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a108"> Use of Proceeds </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 20 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a109"> Dilution </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 20 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a110"> Selling Shareholders </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 20 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a111"> Description of Ordinary Shares </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 23 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a112"> Description of Units </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 25 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a113"> Description of Warrants </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 25 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a114"> Plan of Distribution </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 26 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a115"> Dividend Policy </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 28 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a116"> Offering Expenses </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 28 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a117"> Validity of Securities </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 29 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a118"> Experts </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 29 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a119"> Where You Can Find More Information </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 29 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a120"> Incorporation of Certain Documents by Reference </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 30 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD height="24" vAlign=top><font size="2" face="Times New Roman"><a href="#a121"> Enforceability of Civil Liabilities </a></font></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD width="5%" height="24" align="center" vAlign=top><font size="2" face="Times New Roman"> 31 </font></TD>
    <TD width="5%" align="center" vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
should rely only on the information contained or incorporated by reference in this prospectus or
any supplement. We have not authorized any other person to provide you with different information.
If anyone provides you with different or inconsistent information, you should not rely on it. We
are not, and any underwriter or agent is not, making an offer to sell these securities in any jurisdiction
where the offer or sale is not permitted. You should assume that the information appearing in this
prospectus is accurate only as of the date on the front cover of this prospectus. Our business, financial
condition, results of operations and prospects may have changed since that date.</FONT></P>
<p align=center><font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a101"></a>PROSPECTUS SUMMARY </B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ABOUT THIS PROSPECTUS</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus is part of a registration statement that we filed with the Securities and Exchange Commission,
or SEC, utilizing a &#147;shelf&#148; registration process, relating to the ordinary shares, warrants
and units described in this prospectus. Certain selling shareholders referred to in this prospectus
and identified in supplements to this prospectus may also offer and sell shares of our ordinary shares
under this prospectus. Under this shelf process, we may sell the securities described in this prospectus
in one or more offerings up to a total initial offering price of $6,250,000. The selling shareholders
may sell up to 4,072,397 ordinary shares in one or more offerings. The offer and sale of securities
under this prospectus may be made from time to time, in one or more offerings in any manner described
under the section in this prospectus entitled &#147;Plan of Distribution.&#148; </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
time we sell securities, we will provide a prospectus supplement that will contain specific information
about the terms of that offering. The prospectus supplement may also add, update or change information
contained in this prospectus. You should read both this prospectus and any prospectus supplement
together with additional information described under the heading &#147;Where You Can Find More Information&#148;
and &#147;Incorporation of Certain Documents by Reference.&#148;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus does not contain
all of the information set forth in the registration statement, certain parts of which are omitted
in accordance with the rules and regulations of the SEC. Accordingly, you should refer to the registration
statement and its exhibits for further information about us and our ordinary shares. Copies of the
registration statement and its exhibits are on file with the SEC. Statements contained in this prospectus
concerning the documents we have filed with the SEC are not intended to be comprehensive, and in
each instance we refer you to a copy of the actual document filed as an exhibit to the registration
statement or otherwise filed with the SEC.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have not authorized anyone to
provide you with information different from that contained or incorporated by reference in this prospectus.
The offers to sell and to buy our ordinary shares are made only in jurisdictions where offers and
sales are permitted. The information contained in this prospectus is accurate only as of the date
of this prospectus, regardless of the time of delivery of this prospectus or of any sale of ordinary
shares. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
the context otherwise requires, all references in this prospectus to &#147;BOS,&#148; &#147;we,&#148;
&#147;our,&#148; &#147;our company,&#148; &#147;us&#148; and the &#147;Company&#148; refer to BOS
Better Online Solutions Ltd. and its consolidated subsidiaries.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
references in this prospectus to &#147;ordinary shares&#148; refer to our ordinary shares, nominal
value NIS 4.00 per share. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
references in this prospectus to &#147;dollars&#148; or &#147;$&#148; are to United States Dollars. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
references in this prospectus to &#147;shekels&#148; or &#147;NIS&#148; are to New Israeli Shekels.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>THE COMPANY&nbsp; </B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>We were incorporated in Israel in 1990 and are subject to the Israeli Companies Law 1999 - 5759. Our
executive offices and engineering, development, testing, shipping and service operations are located
in Israel and the USA.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>


Our  telephone  number  is  972-3-954-1000   and  our  website  address  is   www.boscorporate.com.   Our
subsidiaries'  websites are: Odem Electronic  Technologies  1992 Ltd. -  www.odem.co.il;  Dimex Solutions
Ltd. - www.dimex.co.il  and Summit Radio Corp. -  www.summitradio.com.  The information  contained on, or
linked from, our websites is not a part of this prospectus.


</FONT></P>
<p align=center><font size=2>3</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>We operate our business through two segments:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> <B>&#149;</B> </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>



              Supply  Chain  Solutions  - conducted  through two wholly  owned  subsidiaries:  Odem  Electronic
              Technologies  1992 Ltd.  (&#147;Odem&#148;)  and Summit  Radio  Corp.  (&#147;Summit&#148;)  Our  Supply  Chain
              Solutions  business  offers a wide  range of  electronic  components  to  customers  in the
              aviation  and  aerospace  industry  that prefer to work with a limited  number of suppliers
              such  as  BOS  that  are   able  to   provide   a   comprehensive   solution   to  their
              components-supply needs.





</FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>



              Mobile and RFID Solutions - conducted through our wholly owned  subsidiary,  Dimex Solutions Ltd.
              (previously  named  BOScom  Ltd.)  (&#147;Dimex  Solutions&#148;).  Our  Mobile  and  RFID  Solutions
              offering  consist  of three  products  and  solutions  that  together  are a  comprehensive
              turn-key  solution  combining mobile  infrastructure  of  manufacturers  that we represent,
              middleware software and a software application.




</FONT></TD></TR></TABLE>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
February 2009, in order to strengthen the BOS brand-name and as part of our group integration process,
we decided to implement name changes of our wholly owned subsidiaries. Lynk USA, Inc, changed its
name to BOS - Supply Chain Solutions (Lynk) Inc. in March 2009 and the following subsidiaries are
in the process of the name change as follows: </FONT></P>

<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width=35% align="center" vAlign=top><font size="2" face="Times New Roman"> Previous Name </font></TD>
    <TD width=15% vAlign=top>&nbsp;</TD>
    <TD width="38%" align="center" vAlign=top><font size="2" face="Times New Roman"> New Name </font></TD>
    <TD vAlign=top>&nbsp;&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman"> Dimex Solutions Ltd. </font></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> BOS - RFID Solutions (Dimex) Ltd. </font></TD>
    <TD width=12% vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman"> Odem Electronic Technologies 1992 Ltd. </font></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> BOS - Supply Chain Solutions (Odem) Ltd. </font></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman"> Summit Radio Corp. </font></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> BOS - Supply Chain Solutions (Summit) Corp. </font></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a102"></a>THE OFFERING</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>This prospectus relates to the sale by the Company of any combination of securities described in this
prospectus in one or more offerings up to a total dollar amount of $6,250,000. This prospectus provides
you with a general description of the securities that we may offer. Each time we sell securities,
we will provide a prospectus supplement that will contain specific information about the terms of
the offering. The prospectus supplement may also add, update or change information contained in this
prospectus. You should read both this prospectus and any prospectus supplement, together with additional
information described below under the headings &#147;Where You Can Find More Information,&#148; and
&#147;Incorporation of Certain Documents by Reference&#148; before purchasing any of our securities.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> In addition, this prospectus relates to the offering by selling shareholders of up to 4,072,397 ordinary
shares as follows: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> up to 2,642,049 ordinary shares that were issued in private placements in June 2007,&nbsp;&nbsp;December
2007, July 2008 and August 2008; </FONT></TD></TR>
<TR>
  <TD width="5%" align="center" vAlign=top></TD>
<TD width="5%" align="left" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> up to 1,320,348 ordinary shares issuable to the selling shareholders upon the exercise of warrants
that were issued in the December 2007, July 2008 and August 2008 private placements; and </FONT></TD></TR>
<TR>
  <TD width="5%" align="center" vAlign=top></TD>
<TD width="5%" align="left" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>




          up to  110,000  ordinary  shares  that were  issued to a  selling  shareholder  in June 2008 as a
          finders' fee in connection  with the  acquisition of the assets of Dimex Systems (1988)
          Ltd. and Dimex Hagalil Ltd.  (together  &#147;Dimex  Systems&#148;).  For additional  details see
          &#147;Selling Shareholders&#148;.





</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BOS
is filing the registration statement of which this prospectus is a part at this time to fulfill its
contractual obligation to do so. Registration of the ordinary shares does not necessarily mean that
all or any portion of such ordinary shares will be offered for sale by the selling shareholders. </FONT></P>
<p align=center><font size=2>4</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a103"></a>RISK FACTORS</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>You should carefully consider the risks described below and all the information contained or incorporated
by reference into this prospectus before making an investment decision regarding our ordinary shares.
The risks described below are not the only risks facing our company. Additional risks and uncertainties
that we are not aware of or that we currently believe are immaterial may also adversely affect our
business, financial condition, results of operation and liquidity. The trading price of our ordinary
shares could decline due to any of these risks, and you may lose all or part of your investment.</I></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><U>Risks relating to our financial results and capital structure</U></B>:</FONT></P>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I> The global economic slowdown has and may continue to have an adverse impact on our financial results. </I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We,
like other companies, have been and are subject to the effects of market slowdowns. If general economic
conditions fail to improve, or if they continue to deteriorate, our revenues, operating results and
financial condition would be adversely affected. Revenues for the fourth quarter of 2008, amounted
to $11.5 million compared to $13.4 million in the third quarter of 2008, a 14% decrease which reflects
the impact of the economic slowdown on our business. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;



Our
intangible assets as of December 31, 2008 amounted to $7.8 million. Following the economic
slowdown we recorded a goodwill impairment charge of $1.9 million in 2008 related to the
supply chain segment. If general economic conditions fail to improve, we may be required
to record additional impairment charges.


</FONT></P>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
customers debt is derived from sales to customers located primarily in Israel, South America, North
America and Europe. We do not have any collateral or credit insurance in respect of the customers
debt. The balance of allowance for bad debt as of December 31, 2008 amounted to $65,000. If general
economic conditions fail to improve, we may be required to record additional and significant allowances
for bad debts. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>We have had a history of losses and our future levels of sales and ability to achieve profitability
are unpredictable.</I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December 31, 2008, we had an accumulated deficit of $57 million. In 2008 we had a net loss of
$6.4 million. Our ability to maintain and improve future levels of sales and achieve profitability
depends on many factors, which include: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
  <TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>



successful integration  of Summit which was acquired in November 2007 and of the assets of Dimex
Systems, which were purchased in March 2008;




</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>


servicing the debt we have incurred for the financing of our acquisitions;

</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>


financing working capital needs by debt or equity;



</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>

continuing growth in the Aerospace industry and continued demand for our existing products;





</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>


developing and selling new products to meet customer needs;




</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>controlling costs and successfully implementing our business strategy; and </FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>manufacture and delivery of products in a timely manner.</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There can be no assurance that we will
be able to meet our challenges and experience any growth in sales or achieve profitability in the
future or that the levels of historic sales or profitability experienced during previous years will
continue in the future or that our net losses will not increase in the future<B>.</B></FONT></P>
<p align=center><font size=2>5</font></p>
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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>We may be unable to maintain our gross profit margins. </I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
sales and profitability may vary in any given year, and from quarter to quarter. In order to increase
sales and enter into new markets with new products we may find it necessary to decrease prices in
order to be competitive. Additionally, the gross profit margin of our Supply Chain Segment, whose
sales accounted for 76% of our total sales in 2008 and 89% in 2007, tends to fluctuate. We may not
be able to maintain current gross profit margins in the future, which would have a material adverse
effect on our business. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>We require a significant amount of cash to satisfy our debt obligations. If we fail to generate sufficient
cash flow from operations, we may need to renegotiate or refinance our debt, obtain additional financing,
postpone capital expenditures or sell assets. If we are forced to repay our short and long term bank
loans in cash, we may not have enough cash to fund our operations.</I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December 31, 2008 we had $9.6 million of short term bank loans drawn under a revolving credit
facility, $671,000 current maturities of long term loans and long terms loans in the amount of $2.3
million. We depend mainly on our cash generated by continuing operating activities to make payments
on our debts. We cannot assure that we will generate sufficient cash flow from operations to make
the scheduled payments on our debt. Our ability to meet our debt obligations will depend on whether
we can successfully implement our strategy, as well as on economic, financial, competitive and technical
factors. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some
of the factors are beyond our control, such as economic conditions in the markets where we operate
or intend to operate, changes in our customers&#146; demand for our products, and pressure from existing
and new competitors. Also, because part of our loans bear interest at floating rates, we are susceptible
to an increase in interest rates.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we cannot generate sufficient cash flow from operations to make scheduled payments on our debt obligations,
we may need to renegotiate the terms of our debt, refinance our debt, obtain additional financing,
delay planned capital expenditures or sell assets.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
our lenders decline to renegotiate the terms of our debt in these circumstances, the lenders could
declare all amounts borrowed and all amounts due to them under the agreements due and payable.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, our short and long term bank loans contain certain provisions, restrictions and financial
covenants, which if violated, could result in the full principal amounts together with interest and
other amounts becoming immediately due and payable in cash.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we do not have the cash resources to repay our indebtedness in such circumstances, our lenders could
foreclose on our assets that are subject to liens and sell our assets to satisfy the debt.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Our assets are subject to security interests in favor of our lenders. Our failure to repay the bank
loans, if required, could result in legal action against us, which could require the sale of all
of our assets. </I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;




         The  repayment  of our bank debt is secured  by a first  priority  floating  charge on all of our
company's  assets,  present and future as they may be changing from time to time,  and by a first priority
fixed charge on all of the Company's issued and unpaid-for  share capital,  its goodwill and its shares of
Dimex Solutions,  Summit and Odem. In addition,  the Company and its subsidiaries entered into a series of
inter company guarantees in favor of our lenders.





</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we are unable to repay the bank loans when due, our lenders could foreclose on our assets in order
to recover the amounts due. Any such action would require us to curtail or cease operations.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Our debt obligations may hinder our growth and put us at a competitive disadvantage.</I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
debt obligations require us to use a substantial portion of our operating cash flow to repay the
principal and interest on our loans. This reduces funds available to grow and expand our business,
limits our ability to pursue business opportunities and makes us more vulnerable to economic and
industry downturns. The existence of debt obligations and covenants also limits our ability to obtain
additional financing on favorable terms.</FONT></P>
<p align=center><font size=2>6</font></p>
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<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Due to restrictions in our loan agreements, we may not be able to operate our business as we desire.</I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Our loan agreements contain a number of conditions and limitations on the way in which we can operate
our business, including limitations on our ability to raise debt, sell or acquire assets and pay
dividends. Our loan agreements also contain various covenants which require that we maintain certain
financial ratios related to shareholder&#146;s equity and operating results. These limitations and
covenants may force us to pursue less than optimal business strategies or forgo business arrangements
which could have been financially advantageous to our shareholders and us. Our failure to comply
with the covenants and restrictions contained in our loan agreements could lead to a default under
the terms of these agreements.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I> The value of our holdings in affiliated companies may decline and adversely affect our financial results. </I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>

As of December  31, 2008 the Company held 6.1% of the  outstanding  shares of Surf  Communication  Systems
Ltd.,  17.87% of  Qualmax  Inc.  (&#147;Qualmax&#148;)  and 2.38% in New World  Brands  Inc.  (New  World  Brands).
Following  the  consummation  of a merger of Qualmax with and into New World Brands in January  2009,  our
holdings in Qualmax were converted  into shares of New World Brands,  and  consequently,  we hold 15.6% of
the  outstanding  shares of New World  Brands.  During 2008,  an  impairment in the amount of $1.5 million
was recorded in respect of these  shareholdings.  The book value of those  investments  as of December 31,
2008 amounted to $882,000.  We may record  additional  impairment in case of further  deterioration in the
business of these entities.





</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;



         In August  2008,  we reached an agreement  for the sale to New World Brands of up to  thirty-five
(35) million  shares of New World Brands  common  stock.  During 2008, we sold to New World Brands a total
of 6.6 million shares of New World Brands common stock. This agreement has expired.




</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><U>Risks related to our business:</U></B></FONT></P>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I> We depend on key personnel for the success of our business. </I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our success depends, to a significant extent,
on the continued active participation of our executive officers and other key personnel. In addition,
there is significant competition for employees with technical expertise in our industry. In order
to succeed we would need to be able to: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
<TD vAlign=top width=5%></TD>
<TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> retain the executive officers and key technical personnel who have been involved in the development
of our two divisions; </FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD width="5%" align="center" vAlign=top></TD>
<TD width="5%" align="center" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%></TD>
<TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> attract and retain additional qualified personnel to provide technological depth and support to enhance
existing products and develop new products; and </FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD width="5%" align="center" vAlign=top></TD>
<TD width="5%" align="center" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%></TD>
<TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> attract and retain highly skilled computer operating, marketing and financial personnel. </FONT></TD></TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot make assurances that we will
be successful in attracting, integrating, motivating and retaining key personnel. If we are unable
to retain our key personnel and attract additional qualified personnel as and when needed, our business
may be adversely affected. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Integration of our acquisitions requires significant financial and management resources and there is
no assurance that the acquisitions may prove successful. </I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


         Over the past years we have pursued the  acquisition  of  businesses,  products and  technologies
and recently we completed two major  acquisitions,  of the U.S. based Summit, in November 2007, and of the
assets of Dimex Systems, in March 2008.




</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
growth increases the complexity of our operations, places significant demands on our management and
our operational, financial and marketing resources and involves a number of challenges, including:</FONT></P>
<p align=center><font size=2>7</font></p>
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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
  <TD vAlign=top></TD>
  <TD align="center" vAlign=top>&nbsp;</TD>
  <TD align="center" vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=5%></TD>
<TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>&#149;</B></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>managing geographically dispersed operations;</FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD width="5%" align="center" vAlign=top></TD>
<TD width="5%" align="center" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%></TD>
<TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>&#149;</B></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>retaining and motivating key personnel of the acquired businesses;</FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD width="5%" align="center" vAlign=top></TD>
<TD width="5%" align="center" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%></TD>
<TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>&#149;</B></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>assimilating different corporate cultures;</FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD width="5%" align="center" vAlign=top></TD>
<TD width="5%" align="center" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%></TD>
<TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>&#149;</B></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>preserving the business relationships with existing key customers and suppliers;</FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD width="5%" align="center" vAlign=top></TD>
<TD width="5%" align="center" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%></TD>
<TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>&#149;</B></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>maintaining uniform standards, controls, procedures and policies; and</FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD width="5%" align="center" vAlign=top></TD>
<TD width="5%" align="center" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%></TD>
<TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>&#149;</B></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>introducing joint products and service offerings.</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
can be no assurance that we will be able to successfully integrate and manage our recent acquisitions
in order to maintain and grow the combined business and maximize the potential synergies.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further,
once integrated, acquisitions may not achieve comparable levels of revenues, profitability or productivity
as our existing business or otherwise perform as expected. The occurrence of any of these events
could harm our business, financial condition or results of operations.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>We may be unable to effectively manage our growth and expansion, and as a result, our business results
may be adversely affected.</I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
goal is to grow significantly over the next few years. The management of our growth, if any, will
require the continued expansion of our operational and financial control systems, as well as a significant
increase in our financial resources and in our delivery and service capabilities. These factors could
place a significant strain on our resources.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
inability to meet our delivery commitments in a timely manner (as a result of unexpected increases
in orders, for example) could result in losses of sales, our exposure to contractual penalties, costs
or expenses, as well as damage to our reputation in the marketplace.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
inability to manage growth effectively could have a material adverse effect on our business, financial
condition and results of operations.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
our efforts to raise capital do not succeed, our efforts to increase our business may be seriously
jeopardized.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>A significant part of&nbsp;the revenues of our supply chain business are from two major customers Israel
Aircraft Industries (&#147;IAI&#148;) and a strategic Latin American customer (the &#147;Strategic
Customer&#148;). </I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


     Our business  relationship with IAI and the Strategic  Customer accounted for 11% and 13% of our year
2008  revenues,  respectively.  An  interruption  in  our  business  relationship  with  either  of  these
customers  would  result in a  significant  reduction  in our  revenues,  backlog  and in a  write-off  of
inventory, and would have a material adverse effect on our business and results of operations.




</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our long term sales agreement with IAI will end by
December 2010. In July 2008, we signed a contract for the sale of components to the Strategic Customer.
The contract, provides for a framework for orders during an initial five-year term (until 2012).
The contract may be extended for additional five-year terms. Pursuant to the contracts with IAI and
the Strategic Customer, we committed to a fixed components sale price through&nbsp;&nbsp;the respective
contract periods. Each of our agreements with IAI and the Strategic Customer subjects us to the following
risks: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2><B>&#149;</B></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B><I>Significant appreciation in the cost price of electronic components may materially adversely impact
our financial results.</I></B></FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our sales agreements with IAI and the Strategic
Customer provide for the supply of electronic components at a fixed sales price. Absent the flexibility
to increase our prices as a result of increased costs of the components, significant increased costs
may adversely impact our financial results. </FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2><B>&#149;</B></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B><I>The relationship with IAI and the Strategic Customer requires us to hold a large inventory, in order
to meet short lead time and delivery requirements. If we are unable to sell this inventory on a timely
basis, we could incur charges for excess and obsolete inventory, which would materially adversely
affect our results of operations.</I></B></FONT></TD></TR></TABLE>
<p align=center><font size=2>8</font></p>
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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the agreements with IAI and the Strategic Customer,
we are obligated to hold inventory of products necessary for three months of production. This requires
us to incur the costs of purchasing inventory without having an outstanding purchase order for the
products. If we are unable to sell products that are purchased to hold in inventory, we may incur
write-offs and write-downs as a result of slow-moving items, technological obsolescence, excess inventories,
discontinued products and products with market prices lower than cost. Such write-offs and write-downs
could adversely affect our operating results and financial condition.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2><B>&#149;</B></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B><I>If we are unable to provide certain requested components, the entire order which includes these components
may be cancelled. </I></B></FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supply Chain solution programs of electronic components
accommodate the preference of customers to work with a limited number of suppliers that will be able
to provide a wide range of electronic components under one order. In the event we are not able to
provide certain of the components ordered, the customer could elect to terminate the entire order
before its delivery. This could cause us to remain with excess and obsolete inventory and would adversely
affect our results of operations.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>The continued growth of our Mobile and RFID Solutions segment depends on our ability to expand sales
abroad.</I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


         In 2008,  our  Mobile and RFID  Solutions  revenues  that were  generated  from sales  outside of
Israel  amounted to $2.4  million or 19.4% of the entire  Mobile and RFID  Solutions  revenues.  Continued
growth of this  segment  depends on our  ability to further  increase  our sales  abroad.  There can be no
assurance that we will be able to maintain and increase our revenues from these markets.

</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Certain customers of our&nbsp;Supply Chain Solutions&nbsp;may cancel&nbsp;purchase orders&nbsp;they
placed before&nbsp;the delivery.</I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
purchase orders of our Supply Chain&nbsp;Solutions&nbsp;provide that they may be canceled by the
customer before delivery. In the event substantial orders are so cancelled, there is no assurance
that we will be able to sell the pre-purchased inventory at a profit, or at all. This&nbsp;could
result in&nbsp;excess and obsolete inventory&nbsp;and&nbsp;could&nbsp;have a material adverse effect
on our results of operations.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>The Company&#146;s subsidiary, Summit, engages in a number of business activities governed by Federal
Regulations, which if violated, could subject the Company to civil or criminal fines and penalties.
</I></B></FONT></P>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;



         The Company's  subsidiary,  Summit,  engages in a number of business  activities  governed by the
Federal Acquisition  Regulations (FAR), the Defense Federal Acquisition  Regulations (DFAR) and the export
control  provisions of the  International  Traffic In Arms Regulations  (ITAR) of the Department of State.
The FAR and DFAR regulate  business with the U.S.  Department of Defense as well as other U.S.  Government
agencies  regardless of whether a company  serves in the role of a prime  contractor (in direct privity of
contract with the  governmental  agency) or as a subcontractor  to a prime  contractor,  regardless of how
many tiers  down the  contracting  chain.  Violation  of the FAR or DFAR can result in civil and  criminal
fines and other  penalties,  including  suspension  or debarment  from the ability to do business with any
agency  of the  Federal  Government,  whether  directly  or  indirectly.  Much of the  Summit's  business,
regardless of whether with the Federal  Government,  involves compliance with the ITAR, the export control
regulations for the export of defense articles,  technology or defense  services.  ITAR violations are, in
effect,  a violation of the Arms Export Control Act.  Fines and penalties can be civil or criminal.  Civil
fines are  $250,000 per  violation  or twice the value of the  transaction.  Criminal  violations  include
fines of $1,000,000 per violation both for individuals  and entities.  Violation of the ITAR can also lead
to loss of export privileges for up to four years.



</FONT></P>

<p align=center><font size=2>9</font></p>
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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I> We have terminated our business relationship with the US distributor of our BOS&#226;NOVA Suite Solution
(one of the products of Mobile and RFID Solutions segment). Consequently, we may experience an interruption
or decrease in sales, which may have a material adverse effect on our business. </I></B></FONT></P>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


         We have been  marketing  our  BOS&acirc;NOVA  Suite  Solutions  in the United  States  through  one key
distributor.  In 2008 and 2007 our sales  through this  distributor  accounted  for 2% and 4% of our total
sales,  respectively,  and  for  approximately  7% and  18% of our  gross  profit,  respectively.  We have
recently  terminated our business  relationship with this distributor and intend to market and support the
BOSaNOVA Suite Solutions in the US directly,  through our New Jersey operation.  We cannot assure that the
transition  will be successful and we may  experience a reduction in our gross profit,  which could have a
material adverse effect on our business.




</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>
We are required to make additional payments towards the acquisition of the assets of Dimex Systems.

</I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Dimex Asset Purchase Agreement
we are required to pay to the sellers an additional amount of approximately NIS10 million (approximately
$2.6 million, based on a 3.802 NIS to Dollar currency exchange rate), in three installments. The
first installment of NIS3.5 million was made in March 2009 and the remaining amount is payable during
the year 2010. See: &#147;Recent Developments&#148;. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we are unable to make these payments,
we will be in breach of contract and our financial position, and results of operation could be adversely
affected.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>We rely on certain key suppliers.</I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Most
of our sales rely on products of certain key suppliers, which we represent. 49% of our 2008 Supply
Chain Solutions segment purchases were sourced from five suppliers. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that any of our key suppliers becomes unable to fulfill our requirements in a timely manner
or if we cease our business relationship with these suppliers, we may experience an interruption
in delivery until an alternative source of supply can be obtained. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Future changes in industry standards may have an adverse effect on our business.</I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New
industry standards in the aviation and defense industry could cause a portion of our Supply Chain
Solution segment&#146;s inventory to become obsolete and unmarketable which would adversely affect
our results of operations.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>If revenue levels for any quarter fall below our expectations, our results of operations will be adversely
affected.</I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>


&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our  revenues in any quarter are  substantially  dependent on orders  received  and  delivered in
that quarter.  We base our decisions  regarding our operating expenses on anticipated  revenue trends, and
our expenses  levels are  relatively  fixed,  or require some time for  adjustment.  As a result,  revenue
levels below our expectations  will adversely  affect our results of operations.  In the fourth quarter of
2008 we faced a significant  reduction in revenues  which  declined to $11.5 million from $13.4 million in
the third quarter of 2008.





</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Foreign currency fluctuations significantly impact on our business results.</I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;



         The vast majority of our sales are made in U.S.  dollars and a  significant  part of our expenses
is in New Israel Shekels (&#147;NIS&#148;).  Our NIS related costs, as expressed in U.S. dollars,  are influenced by
the  exchange  rate between the U.S.  dollar and the NIS. In 2008,  and through  March 15, 2009,  the U.S.
dollar  depreciated  against the NIS by approximately  8.5%,  which resulted in a significant  increase in
the U.S.  dollar cost of our NIS expenses.  We cannot predict any future trends in the rate of devaluation
or  appreciation  of the NIS against  the U.S.  dollar.  Further  significant  depreciation  could have an
adverse effect on our results of operations and financial condition.




</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>The rate of inflation in Israel may negatively impact our costs if it exceeds the rate of devaluation
of the NIS against the U.S. dollar. Similarly, the U.S. dollar cost of our operations in Israel will
increase to the extent increases in the rate of inflation in Israel are not offset by a devaluation
of the NIS in relation to the U.S. dollar. </I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A substantial
amount of our revenues is denominated in U.S. dollars or is U.S. dollar-linked, but we incur a significant
portion of our expenses, principally the rent for our facilities in Israel and salaries and related
personnel expenses in Israel, in NIS. As a result, we are exposed to the risk that the rate of inflation
in Israel will exceed the rate of devaluation of the NIS in relation to the U.S. dollar or that the
timing of this devaluation lags behind inflation in Israel. In that event, the U.S. dollar cost of
our operations in Israel will increase and our U.S. dollar-measured results of operations will be
adversely affected.</FONT></P>
<p align=center><font size=2>10</font></p>
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<PAGE>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Similarly,
we are exposed to the risk that the NIS, after adjustment for inflation in Israel, will appreciate
in relation to the U.S. dollar. In that event, the dollar cost of our operations in Israel will increase
and our dollar-measured results of operations will be adversely affected. During 2006, 2007 and 2008,
the inflation adjusted NIS appreciated against the U.S. dollar, which raised the dollar cost of our
Israeli operations. We cannot predict whether in the future the NIS will appreciate against the U.S.
dollar or vice versa. Any increase in the rate of inflation in Israel, unless the increase is offset
on a timely basis by a devaluation of the NIS in relation to the U.S. dollar, will increase labor
and other costs, which will increase the dollar cost of our operations in Israel and harm our results
of operations. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
date, we have not engaged in hedging transactions. In the future, we may enter into currency hedging
transactions to decrease the risk of financial exposure from fluctuations in the exchange rate of
the U.S. dollar against the NIS. Even if we perform hedging transactions, they may not adequately
protect us from the effects of inflation in Israel.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>We may be unable to maintain and continue developing marketing and distribution arrangements and expand
our reach into overseas markets. </I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales
outside Israel accounted for 42% of our total sales in 2008 and for 33% in 2007. If we are not able
to maintain our existing distribution channels and expand to new international markets, our operating
results may be materially adversely affected. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>If we are unsuccessful in developing and introducing new products, we may be unable to expand our business.</I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
market for some of our products is characterized by rapidly changing technology and evolving industry
standards. The introduction of products embodying new technology and the emergence of new industry
standards can render existing products obsolete and unmarketable and can exert price pressures on
existing products.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
ability to anticipate changes in technology and industry standards and successfully develop and introduce
new and enhanced products as well as additional applications for existing products, in each case
on a timely basis, will be critical in our ability to grow and remain competitive. Although these
products are related to, and even incorporate our existing products, there can be no assurance that
we will be able to successfully develop and market any such new products. If we are unable to develop
products that are competitive in technology and price and responsive to customer needs, for technological
or other reasons, our business will be materially adversely affected.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>We have significant sales worldwide and could encounter problems if conditions change in the places
where we market our products.</I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


         We have sold and  intend to  continue  to sell our  products  in North and South  America  and in
Europe.



</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A number of risks are inherent in
engaging in international transactions, including:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>possible problems in collecting receivables; </FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>imposition of governmental controls, or export license requirements; </FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>political and economic instability in foreign countries; </FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>trade restrictions or changes in tariffs being imposed; and</FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>laws and legal issues concerning foreign countries.</FONT></TD></TR></TABLE>
<p align=center><font size=2>11</font></p>
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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we should encounter such difficulties in conducting our international operations, it may adversely
affect our business condition and results of operations.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>We may be unable to successfully defend ourselves against claims brought against us.</I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are defendants in a number of lawsuits filed against us, and from time to time in the normal course
of our business, may receive written demands for payments from prospective plaintiffs. Legal proceedings
can be expensive, lengthy and disruptive to normal business operations, and can require extensive
management attention and resources regardless of their merit. Moreover, we cannot predict the results
of all proceedings and there can be no assurance that we will be successful in defending ourselves
against them. An unfavorable resolution of a lawsuit or proceeding could materially adversely affect
our business, results of operations and financial condition.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>We may be obligated to indemnify our directors and officers.</I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has agreements with its directors and senior officers which provide, subject to Israeli law,
for the Company to indemnify these directors and senior officers for (a) monetary liability imposed
upon them in favor of a third party by a judgment, including a settlement or an arbitral award confirmed
by the court, as a result of an act or omission of such person in his capacity as a director or officer
of the Company, (b) reasonable litigation expenses, including attorney&#146;s fees, incurred by them
pursuant to an investigation or a proceeding commenced against them by a competent authority and
that was terminated without an indictment and without having a monetary charge imposed on them in
exchange for a criminal procedure (as such terms are defined in the Israeli Companies Law), or that
was terminated without an indictment but with a monetary charge imposed on them in exchange for a
criminal procedure in a crime that does not require proof of criminal intent, as a result of an act
or omission of such person in his capacity as a director or officer of the Company, and (c) reasonable
litigation expenses, including attorney&#146;s fees, incurred by such a director or officer or imposed
on him by a court, in a proceeding brought against him by or on behalf of the Company or by a third
party, or in a criminal action in which he was acquitted, or in a criminal action which does not
require criminal intent in which he was convicted, in each case relating to acts or omissions of
such person in his capacity as a director or officer of the Company. Such indemnification may materially
adversely affect our financial condition.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>The measures we take in order to protect our intellectual property may not be effective or sufficient.
</I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
success is dependent upon our proprietary rights and technology. We currently rely on a combination
of trade secret, copyright and trademark law, together with non-disclosure and invention assignment
agreements, to establish and protect the proprietary rights and technology used in our products.
We generally enter into confidentiality agreements with our employees, consultants, customers and
potential customers and limit the access to and the distribution of our proprietary information.
Despite these precautions, it may be possible for a third party to copy or otherwise obtain and use
our technology without authorization, or to develop similar technology independently. We do not believe
that our products and proprietary rights infringe upon the proprietary rights of others. However,
there can be no assurance that any other party will not argue otherwise. The cost of responding and
adequately protecting ourselves against any such assertion may be material, whether or not the assertion
is valid. Further, the laws of certain countries in which we sell our products do not protect our
intellectual property rights to the same extent as do the laws of the United States. Substantial
unauthorized use of our products could have a material adverse effect on our business. We cannot
make assurances that our means of protecting our proprietary rights will be adequate or that our
competitors will not independently develop similar technology. Additionally, there are risks that
arise from the use of intranet networks and the Internet. Although we utilize firewalls and protection
software, we cannot be sure that our proprietary information is secured against penetration. Such
penetration, if occurs, could have an adverse effect on our business.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>There can be no assurance that we will not be classified as a passive foreign investment company (a
&#147;PFIC&#148;).</I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based upon
our current and projected income, assets and activities, we do not believe that at this time BOS
is a passive foreign investment company (a &#147;PFIC&#148;) for U.S. federal income tax purposes,
but there can be no assurance that we will not be classified as such in the future. Such classification
may have grave tax consequences for U.S. shareholders. One method of avoiding such tax consequences
is by making a &#147;qualified electing fund&#148; election for the first taxable year in which the
Company is a PFIC. However, such an election is conditioned upon our furnishing U.S. shareholders
annually with certain tax information. We do not presently prepare or provide such information, and
such information may not be available to U.S. shareholders if we are subsequently determined to be a PFIC.</FONT></P>
<p align=center><font size=2>12</font></p>
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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><U>Risks related to our ordinary shares: </U></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Our share price has been and may continue to be volatile, which could result in substantial losses
for individual shareholders.</I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


     The market price of our ordinary  shares has been and may continue to be highly  volatile and subject
to wide fluctuations.  From January 2008 through  March 15, 2009, the daily closing price of our ordinary
shares in NASDAQ has  ranged  from  $0.22 to $2.05 per share and in the TASE has  ranged  from  NIS1.95 to
NIS7.75.  We believe that these  fluctuations  have been in response to a number of factors  including the
following, some of which are beyond our control:



</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> adverse world economic and capital market conditions; </FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>actual or anticipated variations in our quarterly operating results;</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> increase in our bank debts; </FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> the acquisition of Summit and of the assets of Dimex Systems; </FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>additions or departures of key personnel; </FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> changes in our target markets, especially in the aviation industry; </FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> sales of securities in private placements during 2009; and </FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>


devaluation  of the U.S.  dollar against the NIS,  which caused a  corresponding  decrease in the
NIS-quoted  share price on the TASE.  From  January  2008  through,  March 15,
2009 the devaluation of the dollar against the NIS was 8.5%.





</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, the stock market in general, and stocks of technology companies in particular, have from
time to time experienced extreme price and volume fluctuations. This volatility is often unrelated
or disproportionate to the operating performance of these companies. These broad market fluctuations
may adversely affect the market price of our ordinary shares, regardless of our actual operating
performance.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>The Company&#146;s shares may be delisted from the NASDAQ Global Market if it does not meet NASDAQ&#146;s
continued listing requirements.</I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
late 2002 and early 2003 the Company received notice from the NASDAQ Stock Market that its ordinary
shares were subject to delisting from the NASDAQ Global Market for failure to meet NASDAQ&#146;s
minimum bid price and shareholders&#146; equity requirements ($10 million) for continued listing
on the Global Market. Following a hearing, during 2003, we were notified by NASDAQ that we had regained
compliance.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
August 30, 2004, we received notice from the NASDAQ Stock Market that our ordinary shares were subject
to delisting from the NASDAQ Global Market for failure to meet NASDAQ&#146;s minimum market value
of publicly held shares requirement ($5 million) for continued listing on the Global Market. On November
4, 2004, we were notified by NASDAQ that we had regained compliance with this requirement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
January 25, 2005, we received notice from the NASDAQ Stock Market that we were not in compliance
with the minimum $10 million shareholders&#146; equity requirement for continued listing on the Global
Market. Following that notice, on January 28, 2005, we received an additional notice indicating that
based on further review of our financial statements as they appeared in our filing on Form 6-K dated
January 10, 2005, it was determined that the shareholders&#146; equity was $10,601,000 on a pro forma
basis as of September 30, 2004. Therefore we were in compliance with the stockholders&#146; equity
requirement for continued listing on the Global Market and the matter had been closed.</FONT></P>
<p align=center><font size=2>13</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
June 2, 2005, the Company again received notice from the NASDAQ Stock Market indicating that based
on the results for the period ended March 31, 2005, the shareholders&#146; equity was $9,425,000,
and accordingly not in compliance with the minimum $10,000,000 shareholders&#146; equity requirement
for continued listing on the Global Market. In June 2005, the Company regained compliance with NASDAQ&#146;s
minimum $10,000,000 shareholders&#146; equity requirement for continued listing on the Global Market. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


The Company's share has recently  traded at a price below the NASDAQ's  minimum bid price of $1.00 and its
market value of publicly  held shares is below the minimum  required of $5 million.  NASDAQ has  suspended
these  continued  listing  requirements  through July 20, 2009.  There can be no assurance that we will be
able to meet and  continue  to meet these or other  NASDAQ  requirements  to  maintain  our NASDAQ  Global
Market  listing,  in which case we will seek to transfer the listing of our ordinary  shares to the NASDAQ
Capital Market, of which there can be no assurance.


</FONT></P>

<p align=center><font size=2>14</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><U>Risks related to our location in Israel</U>:</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Political, economic, and security conditions in Israel affect our operations and may limit our ability
to produce and sell our products or provide our services. </I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


We are  incorporated  under the laws of the State of Israel,  where we also maintain our  headquarters and
our principal research and development and sales and marketing facilities.  Political,  economic, security
and military  conditions  in Israel  directly  influence  us. We could be adversely  affected by any major
hostilities  involving  Israel,  the  interruption  or curtailment of trade between Israel and its trading
partners or a  significant  downturn in the economic or financial  condition of Israel.  In January  2006,
Hamas, an Islamic movement  responsible for many attacks against  Israelis,  won the majority of the seats
in the Parliament of the Palestinian Authority.  The election of a majority of Hamas-supported  candidates
is a major  obstacle  to  relations  between  Israel  and  the  Palestinian  Authority,  as well as to the
stability  in the  Middle  East as a whole.  In  addition,  the  future of the  "peace  process"  with the
Palestinians  is  uncertain  and has  deteriorated  due to  Palestinian  violence,  with the  threat  of a
large-scale  attack by  Palestinians  on Israeli  civilians  and key  infrastructure  remaining a constant
concern.  The past few years of renewed  terrorist  attacks by the Palestinians has severely  affected the
Israeli  economy in many  ways.  In June  2007,  there was an  escalation  in  violence  in the Gaza Strip
resulting  in Hamas  effectively  controlling  the Gaza Strip and a further  escalation  in  violence  has
occurred  during the first few months of 2008. In July 2006,  Israel became  involved in a major  military
conflict  with the  Hizbullah  organization  in Lebanon,  which  subjected  the north of Israel to missile
attacks.  In December 2008,  Israel was involved in a military  conflict with Hamas,  which  subjected the
South of Israel to missile  attacks.  Ongoing  violence  between  Israel and the  Palestinians  as well as
tension  between Israel and the  neighboring  Syria and Lebanon may have a material  adverse effect on our
business,  financial  condition and results of operations.  In addition,  several countries still restrict
business  with Israel and with  companies  doing  business in Israel.  We could be  adversely  affected by
adverse  developments in the "peace process" or by restrictive  laws or policies  directed  towards Israel
or Israeli businesses.







</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally,
all nonexempt male adult citizens and permanent residents of Israel, are obligated to perform military
reserve duty annually, and are subject to being called to active duty at any time under emergency
circumstances. While we have operated effectively under these requirements since our incorporation,
we cannot predict the full impact of such conditions on us in the future, particularly if emergency
circumstances occur. If many of our employees are called for active duty, our business may be adversely
affected.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally,
in recent years Israel has been going through periods of recession in economic activity, resulting
in low growth rates and growing unemployment. Our operations could be adversely affected if the economic
conditions in Israel deteriorate. Also, due to significant economic reforms proposed by the Israeli
government, there have been several general strikes and work stoppages in 2003 and 2004, affecting
all banks, airports and ports. Such strikes or work stoppages have an adverse effect on the Israeli
economy and on our business. Furthermore, Israel is a party to certain trade agreements with other
countries, and material changes to these agreements could have an adverse effect on our business.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>The anti-takeover effects of Israeli laws may delay or deter a change of control of the Company.</I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Israeli Companies Law, a merger is generally required to be approved by the shareholders and
Board of Directors of each of the merging companies. Shareholder approval is not required if the
company that will not survive the merger is controlled by the surviving company. Additionally, the
law provides some exceptions to the shareholder approval requirement in the surviving company. Shares
held by a party to the merger and certain of its affiliates are not counted towards the required
approval. If the share capital of the company that will not be the surviving company is divided into
different classes of shares, the approval of each class is also required. A merger may not be approved
if the surviving company will not be able to satisfy its obligations. At the request of a creditor,
a court may block a merger on this ground. In addition, a merger can be completed only after all
approvals have been submitted to the Israeli Registrar of Companies, provided that 30 days have elapsed
since shareholder approval was received and 50 days have passed from the time that a proposal for
approval of the merger was filed with the Registrar. </FONT></P>
<p align=center><font size=2>15</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Israeli Companies Law provides that an acquisition of shares in a public company must be made by
means of a tender offer, if as a result of the acquisition, the purchaser would become a holder of
25% or more of the voting power at general meetings, and no other shareholder owns a 25% stake in
the Company. Similarly, the Israeli Companies Law provides that an acquisition of shares in a public
company must be made by means of a tender offer if, as a result of the acquisition, the purchaser
would become a holder of 45% or more of the voting power at general meetings, unless someone else
already holds 45% of the voting power. An acquisition from a 25% or 45% holder, which results in
the purchaser becoming a 25% or 45% holder respectively, does not require a tender offer. An exception
to the tender offer requirement may also apply when the additional voting power is obtained by means
of a private placement approved by the general meeting of shareholders. These rules also do not apply
if the acquisition is made by way of a merger.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Israeli Companies Law also provides specific rules and procedures for the acquisition of shares held
by minority shareholders, if the majority shareholder shall hold more than 90% of the outstanding
shares. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These
laws may have the effect of delaying or deterring a change in control of the Company, thereby limiting
the opportunity for shareholders to receive a premium for their shares and possibly affecting the
price that some investors are willing to pay for the Company&#146;s securities.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>All of our directors and most of our officers are non-U.S. residents and enforceability of civil liabilities
against them is uncertain. </I></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of our directors and most of our officers reside outside of the United States. Service of process
upon them may be difficult to effect within the United States. Furthermore, because the majority
of our assets are located in Israel, any judgment obtained in the United States against us or any
of our directors and non- U.S. officers may not be collectible within the United States.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a104"></a>FORWARD-LOOKING STATEMENTS</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


         This  prospectus  contains  forward-looking  statements  that are  intended to be, and are hereby
identified as, forward  looking  statements for the purposes of the safe harbor  provisions of the Private
Securities  Reform  Act of  1995.  These  statements  address,  among  other  things:  our  strategy;  the
anticipated  development of our products;  the results of completed  acquisitions  and our ability to make
future  acquisitions;  our anticipated use of proceeds;  our projected capital expenditures and liquidity;
our  development of additional  revenue  sources;  our  development  and expansion of  relationships;  the
market  acceptance  of our  products;  and our  technological  advancement.  Actual  results  could differ
materially  from those  anticipated in these  forward-looking  statements as a result of various  factors,
including all the risks discussed above and elsewhere in this  prospectus.  You should  therefore not rely
on these forward-looking statements, which are applicable only as of the date hereof.



</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
urge you to consider that statements which use the terms &#147;believe&#148;, &#147;do not believe&#148;,
&#147;expect&#148;, &#147;plan&#148;, &#147;intend&#148;, &#147;estimate&#148;, &#147;anticipate&#148;,
&#147;projections&#148;, &#147;forecast&#148; and similar expressions are intended to identify forward-looking
statements. These statements reflect our current views with respect to future events and are based
on assumptions and are subject to risks and uncertainties. Except as required by applicable law,
including the federal securities laws of the United States, we do not intend to update or revise
any forward-looking statements, whether as a result of new information, future events or otherwise.
We disclaim any obligation to publicly revise any such statements to reflect any change in expectations
or in events, conditions, or circumstances on which any such statements may be based.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market
data and forecasts used in this prospectus have been obtained from independent industry sources.
We have not independently verified the data obtained from these sources and we cannot assure you
of the accuracy or completeness of the data. Forecasts and other forward-looking information obtained
from these sources are subject to the same qualifications and additional uncertainties accompanying
any estimates of future market size.</FONT></P>
<p align=center><font size=2>16</font></p>
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<PAGE>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a105"></a> RECENT DEVELOPMENTS </B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
November 19, 2008 the Company announced that Shmuel Koren, its President and CEO tendered his resignation
from the Company. Mr. Koren was replaced by Mr. Shalom Daskal. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
February 2009, the Company sold its OptimizeIT product and related IP in consideration for US$70,000
plus contingent consideration based on future revenues of up to US$1.5 million. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


         On February  11,  2009 the  Company  announced  that it  requested  the TASE to delist its shares
from trading in Tel Aviv.  Under  applicable  Israeli law, the  delisting  will become  effective in three
months from the request,  during such time the  Company&#146;s  ordinary  shares will  continue to trade on the
TASE.  The  delisting of the  Company's  ordinary  shares from trade on the TASE shall be effective on May
12, 2009.  The last day for trading of the  Company&#146;s  ordinary  shares on the TASE is May 10,  2009.  The
delisting  of the  ordinary  shares from the TASE will not affect the  continued  listing of the  ordinary
shares on the NASDAQ  Global Market under the symbol BOSC.  After the delisting of the Company's  ordinary
shares from the TASE, the Company will not be subject to reporting requirements in Israel.



 </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;





         In March 2009,  the  Company  entered  into an  agreement  with Dimex  Systems  that  revises the
payment  schedule  of  approximately  NIS 10  million  still  owed by the  Company  under the Dimex  Asset
Purchase  Agreement  dated January 29, 2008. The  aforementioned  amount was payable in three  semi-annual
installments  through March 2010. The amendment to the agreement  provides for a NIS 3 million  payment in
March 2009,  NIS 4 million  will be paid in 6 equal  monthly  installments  each,  starting on January 15,
2010, and the remaining  approximately  NIS 2.5 million shall be paid in two equal  installments  in March
and April  2010.  The  amendment  further  provides,  that if the  Company  raises  funds by way of a debt
offering  meeting  certain  conditions,  the  last  payment  of  approximately  NIS 2.5  million  shall be
converted into the same type of convertible debentures issued in the framework of such offering,





</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


         On March 23, 2009,  the Company  and its  Israeli  subsidiaries  executed revised  loan documents
governing the Company's  and its Israeli  subsidiaries'  short term revolving  credit line from Bank Leumi
Le Israel Ltd. (&#147;Bank Leumi&#148;).  In the revised  loan documents,  the Company and its Israeli  subsidiaries
undertook updated covenants  relating to, among other  things, financial  ratios of equity and EBIDTA, and
continue to provide Bank Leumi with  various  security  interests  and cross  guarantees. The loan terms
continue to restrict  substantial asset sales, cash dividends,  and certain inter-company and shareholders
payments.




</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> </FONT></P>
<table cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr>
    <td width=5% align="center" valign=top>&nbsp;</td>
    <td width=5% align="left" valign=top><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td valign=top><font face="Times New Roman, Times, Serif" size=2> </font></td>
  </tr>
  <tr>
    <td width="5%" align="center" valign=top></td>
    <td width="5%" align="left" valign=top></td>
    <td valign=top>&nbsp;</td>
  </tr>
  <tr>
    <td width=5% align="center" valign=top>&nbsp;</td>
    <td width=5% align="left" valign=top><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td valign=top><font face="Times New Roman, Times, Serif" size=2> </font></td>
  </tr>
  <tr>
    <td width="5%" align="center" valign=top></td>
    <td width="5%" align="left" valign=top></td>
    <td valign=top>&nbsp;</td>
  </tr>
  <tr>
    <td width=5% align="center" valign=top>&nbsp;</td>
    <td width=5% align="left" valign=top><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td valign=top><font face="Times New Roman, Times, Serif" size=2> </font></td>
  </tr>
  <tr>
    <td width="5%" align="center" valign=top></td>
    <td width="5%" align="left" valign=top></td>
    <td valign=top>&nbsp;</td>
  </tr>
  <tr>
    <td width=5% align="center" valign=top>&nbsp;</td>
    <td width=5% align="left" valign=top><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td valign=top><font face="Times New Roman, Times, Serif" size=2> </font></td>
  </tr>
</table>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> </FONT></P>


<p align=center><font size=2>17</font></p>
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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a106"></a>CAPITALIZATION </B></FONT></P>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below sets forth our condensed consolidated current liabilities and capitalization at December
31, 2008 on an actual basis. This table was prepared in accordance with the U.S. Generally Accepted
Accounting Principles. The financial data is derived from our audited consolidated financial statements
as of December 31, 2008. </FONT></P>




<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Consolidated Capitalization<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>(in US thousands of dollars)</B></FONT></P>

<table width="100%" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><strong><font size="1" face="Times New Roman, Times, serif"> As of December 31, 2008 </font></strong></td>
    <td><font size="1">&nbsp;</font></td>
    <td colspan="2" align="center"><strong><font size="1" face="Times New Roman, Times, serif"> Actual (audited) </font></strong></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><HR SIZE=1 COLOR="#000000" NOSHADE></td>
    <td width="1%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="15%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif"> <strong><u>Short term debt</u></strong> </font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="10%" bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="15%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> Secured </font></td>
    <td width="2%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="1%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 10,299 </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif"> Unsecured </font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif"> 11,238 </font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><HR SIZE=1 COLOR="#808080" NOSHADE></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> Total short term debt </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 21,537 </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> <strong> &nbsp;</strong> </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif"> <strong><u>Long term debt</u></strong> </font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> Secured </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 2,256 </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif"> Unsecured </font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif"> 2,308 </font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><HR SIZE=1 COLOR="#808080" NOSHADE></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> Total long term debt </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 4,564 </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> <strong> &nbsp;</strong> </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif"> <strong><u>Shareholders equity</u></strong> </font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> Share capital: Ordinary Shares <br>
&nbsp;&nbsp;issued 13,027,514 </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 13,159 </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif"> Additional paid-in Capital </font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif"> 55,452 </font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> Accumulated deficit </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 57,367 </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><HR SIZE=1 COLOR="#808080" NOSHADE></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif"> Total shareholders equity </font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif"> $ </font></td>
    <td align="right" bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif"> 11,244 </font></td>
    <td bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
</table>



<p align=center><font size=2>18</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>


<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a107"></a>PRICE RANGE OF OUR ORDINARY SHARES</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>

Our  ordinary  shares  are  listed and traded on the NASDAQ  Global  Market  under the symbol  &#147;BOSC&#148;.  In
addition,  in January 2002, our ordinary shares commenced  trading on the TASE under the symbol &#147;BOSC&#148;. In
February  2009, we requested  the TASE to delist our ordinary  shares from  trading,  and  following  this
request,  the last day of trading of our ordinary  shares on the TASE shall be May 10,  2009.  See &#147;Recent
Developments&#148;.


</FONT></P>



<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth the high and low closing prices for our ordinary shares as reported by
NASDAQ and the TASE for the periods indicated. All share prices have been retroactively adjusted
to reflect the 1:4 reverse stock split effected on May 29, 2003.</FONT></P>



<table width="100%" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="5" align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td colspan="5" align="center">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><strong><font size="1" face="Times New Roman"> Period </font></strong></td>
    <td><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td><font size="1" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="5" align="center"><strong><font size="1" face="Times New Roman"> NASDAQ </font></strong></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="5" align="center"><strong><font size="1" face="Times New Roman"> TASE </font></strong></td>
    <td><font size="1" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="5" align="center"><HR SIZE=1 COLOR="#000000" NOSHADE></td>
    <td align="center">&nbsp;</td>
    <td colspan="5" align="center"><HR SIZE=1 COLOR="#000000" NOSHADE></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><font size="1" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td><font size="1" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><strong><font size="1" face="Times New Roman"> High ($) </font></strong></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><strong><font size="1" face="Times New Roman"> Low ($) </font></strong></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><strong><font size="1" face="Times New Roman"> High (NIS) </font></strong></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><strong><font size="1" face="Times New Roman"> Low (NIS) </font></strong></td>
    <td><font size="1" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td><font size="1" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2"><HR SIZE=1 COLOR="#000000" NOSHADE></td>
    <td><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2"><HR SIZE=1 COLOR="#000000" NOSHADE></td>
    <td><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2"><HR SIZE=1 COLOR="#000000" NOSHADE></td>
    <td><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2"><HR SIZE=1 COLOR="#000000" NOSHADE></td>
    <td><font size="1" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman"> 2003 </font></td>
    <td width="3%"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td width="15%" bgcolor="#cceeff"><font size="2" face="Times New Roman"> Annual </font></td>
    <td width="2%"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td width="1%"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td width="12%" align="right"><font size="2" face="Times New Roman"> 3.97 </font></td>
    <td width="2%" align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td width="1%" align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td width="12%" align="right"><font size="2" face="Times New Roman"> 1.67 </font></td>
    <td width="2%" align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td width="1%" align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td width="12%" align="right"><font size="2" face="Times New Roman"> 17.42 </font></td>
    <td width="2%" align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td width="1%" align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td width="12%" align="right"><font size="2" face="Times New Roman"> 8.00 </font></td>
    <td width="1%"><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman"> 2004 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> Annual </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 4.00 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 1.62 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 14.98 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 8.89 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman"> 2005 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> Annual </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 3.74 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.15 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 16.33 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 9.00 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman"> 2006 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> Annual </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.97 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.11 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 14.58 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 9.64 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman"> 2007 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> Annual </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.90 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 1.90 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 12.48 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 7.01 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> First Quarter </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.63 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.50 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 12.48 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 10.60 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> Second Quarter </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.90 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.55 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 11.60 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 10.25 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> Third Quarter </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.74 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.30 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 11.85 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 9.50 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> Fourth Quarter </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.49 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 1.90 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 10.90 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 7.01 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman"> 2008 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> Annual </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.05 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 0.23 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 7.75 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.00 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> First Quarter </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.05 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 1.48 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 7.75 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 6.50 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> Second Quarter </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 1.69 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 1.40 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 6.58 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 4.28 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> Third Quarter </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 1.38 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 0.77 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 5.48 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 3.64 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> Fourth Quarter </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 0.79 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 0.23 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 3.64 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.00 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman"> 2009 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> January </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 0.49 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 0.22 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.00 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 1.95 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> February </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 0.64 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 0.47 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.27 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 1.95 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman">&nbsp;</font> </td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman"> March 15 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 0.64 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 0.40 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.27 </font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman"> 2.27 </font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
</table>

<p align=center><font size=2>19</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a108"></a>USE OF PROCEEDS</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the proceeds from the sale of the ordinary shares offered under this prospectus by selling shareholders
are for the account of the selling shareholder. Accordingly, we will not receive any proceeds from
the sales of these shares other than the exercise price payable to us upon the exercise of warrants
held by the selling shareholder. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
we state otherwise in a prospectus supplement, we will use the net proceeds for the sale of securities
we offer pursuant to this prospectus for general corporate purposes. From time to time we may evaluate
the possibility of acquiring businesses, products and technologies, and we may use a portion of the
proceeds as consideration for such acquisitions. Until we use net proceeds for these purposes, we
may invest them in interest-bearing deposits. </FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a109"></a>DILUTION </B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will set forth in a prospectus supplement the following information regarding any material dilution
of the equity interests of investors purchasing securities in an offering under this prospectus: </FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD width="5%" height="15" align="center" vAlign=top><font size="2" face="Times New Roman">&#149;</font></TD>
    <TD vAlign=top width="90%"><P><font size="2" face="Times New Roman">the net tangible book value per share of our equity securities before and after the offering;</font></P></TD>
  </TR>
  <TR>
    <TD height="15" align="center" vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD height="15" align="center" vAlign=top><font size="2" face="Times New Roman">&#149;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">the amount of the increase in such net tangible book value per share attributable to the cash payments made by purchasers in the offering; and</font></TD>
  </TR>
  <TR>
    <TD height="15" align="center" vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD height="15" align="center" vAlign=top><font size="2" face="Times New Roman">&#149;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">the amount of the immediate dilution from the public offering price which will be absorbed by such purchasers.</font></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a110"></a>SELLING SHAREHOLDERS</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> This prospectus relates to the offering by selling shareholders of up to 4,072,397 ordinary shares
as follows: </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><I> June 2007 Private Placement </I></FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
<TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> 226,415 ordinary shares that were issued in a private placement to a non-U.S. investor in June 2007,
pursuant to a Share Purchase Agreement entered into on June 19, 2007, which is attached as an exhibit
hereto. The ordinary shares were issued at a price per share of $2.65, reflecting a $600,000 investment
in total. </FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I> December 2007 Private Placement </I></FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
<TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> 833,560 ordinary shares that were issued in a private placement to four non-U.S. investors in December
2007, pursuant to a Share Purchase Agreement entered into on December 31, 2007, which is attached
as an exhibit hereto. The ordinary shares were issued at a price per share of $2.40, reflecting an
aggregate investment of approximately $2 million. </FONT></TD></TR>
<TR>
<TD width="5%" align="center" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>


          25,007  ordinary  shares that were issued to Catalyst Fund.  These ordinary shares were issued as
          fees for services  rendered to the Company by Cukierman &amp; Co.  Investment House, an affiliate of
          Catalyst  Fund, in connection  with the December 2007 private  placement.  Additional  placement
          fees,  amounting to  approximately  $30,000 and expenses  reimbursement  of $18,000 were paid in
          cash to D.S. Apex.



</FONT></TD></TR>
<TR>
<TD width="5%" align="center" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> up to 541,814 ordinary shares issuable to the four non-U.S. investors upon the exercise of warrants
that were issued to them. The exercise price of the warrants is $2.76 per ordinary share. The terms
of the warrants appear in the Warrant Agreement issued to the investors pursuant to the Share Purchase
Agreement, and which is attached as an exhibit hereto. </FONT></TD></TR></TABLE>
<BR>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=5%>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> The Company also entered into a Registration Rights Agreement pursuant to which the Company is filing this registration statement. </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<BR>


<p align=center><font size=2>20</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> <I>June 2008 Private Placement </I> </FONT></TD>
  </TR>
  <TR>
    <TD width="28" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>




          110,000  ordinary  shares that were issued to T.F.E.  Holdings  Ltd. in June 2008.  These  shares
          were issued as fees for services  rendered to the Company in connection with the acquisition of
          the assets of Dimex Systems,  pursuant to a Finder Fee Letter Agreement  attached as an exhibit
          hereto.




</FONT></TD>
  </TR>
  <TR>
    <TD width="5%" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> <I>July 2008 Private Placement </I> </FONT></TD>
  </TR>
  <TR>
    <TD width="28" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> 740,740 ordinary shares that were issued in a private placement to three non-U.S. investors in July 2008, pursuant to a Share Purchase Agreement entered into on July 16, 2008. The ordinary shares were issued at a price per share of $1.35, reflecting an aggregate investment of&nbsp;&nbsp;$1 million. </FONT></TD>
  </TR>
  <TR>
    <TD width="5%" align="center" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> up to 370,370 ordinary shares issuable to three non-U.S. investors upon the exercise of warrants that were issued to them. The exercise price of the warrants is $1.60 per ordinary share. The terms of the warrants appear in the Warrant Agreement issued to the investors pursuant to the Share Purchase Agreement, and which is attached as an exhibit hereto. </FONT></TD>
  </TR>
  <TR>
    <TD width="5%" align="center" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> <I>August 2008 Private Placement</I> </FONT></TD>
  </TR>
  <TR>
    <TD width="28" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>



          816,327  ordinary  shares  that were  issued in a private  placement  to a non-U.S.  investor  in
          August 2008,  pursuant to a Share  Purchase  Agreement  entered  into on August 25,  2008.  The
          ordinary shares were issued at a price per share of $1.225,  reflecting an aggregate investment
          of $1 million.




</FONT></TD>
  </TR>
  <TR>
    <TD width="5%" align="center" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=5% align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &#149; </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> up to 408,164 ordinary shares issuable to the non-U.S. investor upon the exercise of warrants that were issued&nbsp;&nbsp;to it. The exercise price of the warrants is $1.475 per ordinary share. The terms of the warrants appear in the Warrant Agreement issued to the investors pursuant to the Share Purchase Agreement, and which is attached as an exhibit hereto. </FONT></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> Cukierman &amp; Co. Investment House served as the Company&#146;s private placement agent in all of the private placements listed above, except for the June 2008 private placement </FONT></P>

<P><FONT face="Times New Roman, Times, Serif" size=2> </FONT></P>
<p align=center><font size=2>21</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>


The table below sets forth  certain  information  concerning  the number of ordinary  shares and  warrants
owned by the selling  shareholders  as of March 25, 2009,  and the number of ordinary  shares and warrants
that may be offered  from time to time by the  selling  shareholders  under this  prospectus.  Because the
selling  shareholders  may offer all or some  portion of the  ordinary  shares,  BOS has  assumed  for the
purposes of the table  below that the selling  shareholders  will sell all of the  ordinary  shares it has
acquired from us.




</FONT></P>

<table width="100%" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="5" align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="5" align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="5" align="center"><font size="1" face="Times New Roman"> <strong> Shares Owned or Underlying <br>
      Convertible Securities<br>
      Prior to Offering </strong> </font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><font size="1" face="Times New Roman"> <strong> Shares Being<br>
      Offered</strong> (4) </font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="5" align="center"><font size="1" face="Times New Roman"> <strong> Shares Beneficially <br>
      Owned After the <br>
      Offering </strong> </font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="5" align="center"><HR SIZE=1 COLOR=BLACK NOSHADE></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><HR SIZE=1 COLOR=BLACK NOSHADE></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="5" align="center"><HR SIZE=1 COLOR=BLACK NOSHADE></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><strong><font size="1" face="Times New Roman"> Number (1) </font></strong></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><strong><font size="1" face="Times New Roman"> Percent (1) </font></strong></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><strong><font size="1" face="Times New Roman"> Number </font></strong></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><strong><font size="1" face="Times New Roman"> Percent </font></strong></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><HR SIZE=1 COLOR=BLACK NOSHADE></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><HR SIZE=1 COLOR=BLACK NOSHADE></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><HR SIZE=1 COLOR=BLACK NOSHADE></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center"><HR SIZE=1 COLOR=BLACK NOSHADE></td>
    <td align="center"><font size="1" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td colspan="2" align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td colspan="2" align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td colspan="2" align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td colspan="2" align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman, Times, serif"> <strong> SG Private Banking <br>
      (Suisse) S.A. </strong> <br>
      Avenue de Rumine 20 <br>
      CH -1001 Lausanne <br>
      Switzerland (2) </font></td>
    <td width="2%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="1%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="10%" align="right"><font size="2" face="Times New Roman, Times, serif"> 226,415 </font></td>
    <td width="3%" align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="2%" align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="10%" align="right"><font size="2" face="Times New Roman, Times, serif"> 1.7 </font></td>
    <td width="3%" align="left"><font size="2" face="Times New Roman, Times, serif"> % </font></td>
    <td width="2%" align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="10%" align="right"><font size="2" face="Times New Roman, Times, serif"> 226,415 </font></td>
    <td width="3%" align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="2%" align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="10%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE=2> &#150; </font></td>
    <td width="3%" align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="2%" align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="10%" align="right"><font size="2" face="Times New Roman, Times, serif"> &#150; </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif"> <strong> Catalyst Fund <br>
      </strong>3 Daniel Frish St Tel <br>
      Aviv 64731, Israel (3) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 2,388,159 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 18.0 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> % </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 712,694 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 1,675,465 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 12.6 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> % </font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman, Times, serif"> <strong> K.G.M. Provident Fund<br>
      and Hishtalmut Fund </strong> <br>
      23 Yehuda Halevy <br>
      St. Tel-Aviv Israel (5) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 519,247 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" bgcolor="#cceeff"><font size="2" face="Times New Roman, Times, serif"> 3.9 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> % </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 313,467 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 205,780 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 1.6 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> % </font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif"> <strong> Yuvalim Provident and <br>
      Hishtalmut Fund</strong> <br>
      23 Yehuda Halevy <br>
      St. Tel-Aviv Israel (5) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 388,845 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 3.0 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> % </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 181,566 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 207,279 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 1.6 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> % </font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman, Times, serif"> <strong>Yuvalim Pension Fund</strong> <br>
      23 Yehuda Halevy <br>
      St. Tel-Aviv Israel (5) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 192,654 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 1.5 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> % </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 192,654 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">- </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> - </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif"> <strong>T.F.E Holdings Ltd.</strong> <br>
      5 Havradim St. Ganey <br>
      Yehuda, POB 6567, <br>
      56905 Israel (6) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 110,000 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 0.8 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> % </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 110,000 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE=2> &#150; </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> &#150; </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman, Times, serif"> <strong>Ms. Sophie Dulac</strong> <br>
      86 Avenue Niel,<br>
      75017 Paris France </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 372,222 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 2.8 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> % </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 372,222 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE=2> &#150; </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> &#150; </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif"> <strong> McKenzie Jordan and <br>
      Cie Inc. </strong> <br>
      1000 de la Gaucheti&egrave;re <br>
      West No 2900, Montr&eacute;al, <br>
      Qu&eacute;bec <br>
      Canada H3B 4W5 (7) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 372,222 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 2.8 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> % </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 372,222 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE=2> &#150; </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> &#150; </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#cceeff">
    <td><font size="2" face="Times New Roman, Times, serif"> <strong> Kentville Company Inc.</strong> <br>
      1000 de la Gaucheti&egrave;re <br>
      West No. 2900, Montr&eacute;al, <br>
      Qu&eacute;bec <br>
      Canada H3B 4W5 (8) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 366,666 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 2.8 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> % </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 366,666 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE=2> &#150; </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> &#150; </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif"> <strong> Bellite Pty Limited<br>
      </strong> 7 Beresford Road Rose <br>
      Bay 2029 NSW <br>
      Australia (9) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 1,224,491 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 9.1 </font></td>
    <td align="left"><font size="2" face="Times New Roman, Times, serif"> % </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> 1,224,491 </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE=2> &#150; </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> &#150; </font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
</table>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD width="5%" vAlign=top><P><font size="2" face="Times New Roman"> (1) </font></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">

Calculated based upon 13,027,514 ordinary shares outstanding as of March 25, 2009.

</font></P></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman"> (2) </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> The shares held by S.G. Private Banking are beneficially owned by Ms. Sophie Dulac (75,000 ordinary shares), McKenzie Jordan and Cie Inc. (76,415 ordinary shares) and Kentville Company Inc. (75,000 ordinary shares). See notes 7-8 below. </font></TD>
  </TR>
</TABLE>

<p align=center><font size=2>22</font></p>
<hr size="1" noshade  style="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>

<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" vAlign=top><font size="2" face="Times New Roman"> (3) </font></TD>
    <TD><font size="2" face="Times New Roman">


 &#147;Catalyst  Fund&#148; refers  collectively  to Catalyst  Fund L.P.,  Catalyst Fund II L.P. and Catalyst Fund III,
 L.P. , all of which are limited  partnerships  organized and existing under the laws of the State of Israel,
 and which share the same general partner,  Catalyst  Investments L.P. Mr. Edouard Cukierman may be deemed to
 have sole voting and  dispositive  power with respect to the shares offered for resale by Catalyst Fund. Mr.
 Cukierman disclaims beneficial ownership in such shares, except to the extent of his proportionate  interest
 in them as an indirect limited partner in the Catalyst Fund.





</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman">

Catalyst  Investments  L.P. has entered into an agreement  with  Catalsyt  Fund,  pursuant to which during
2009,  Catalyst  Investments  L.P.  shall  purchase from  Catalyst  Fund ordinary  shares in the aggregate
amount  of  approximately  $380,000  (the "GP  Shares").  The GP  Shares  shall be  purchased  in  several
installments,  and the number of GP Shares to be purchased in each installment  shall be calculated on the
basis of the weighted  average of the closing  prices of the shares on the NASDAQ Global Market during the
thirty-day  period prior to the  purchase.  In January  2009, a total of 464,160 GP Shares were  purchased
for a total of $116,040.




</font></TD>
  </TR>
  <TR>
    <TD width="5%" vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD width="5%" vAlign=top><font size="2" face="Times New Roman"> (4) </font></TD>
    <TD><font size="2" face="Times New Roman"> Number of shares includes the maximum number of shares that may be received by the selling shareholders upon the full exercise of warrants they hold into ordinary shares. </font></TD>
  </TR>
  <TR>
    <TD width="5%" vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%"><P><font size="2" face="Times New Roman"> (5) </font></P></TD>
    <TD width=0%><FONT size="2" face="Times New Roman">

Yuvalim Provident and Hishtalmut Fund Management Ltd. was merged into Apex Provident Funds Management
Ltd.  Apex Provident Funds Management Ltd. and Yuvalim Pension Fund Ltd. are affiliated with DS Apex
Holdings Ltd. K.G.M. Provident Fund and Hishtalmut Fund is wholly-owned by Yuvalim Provident and
Hishtalmut Fund Management Ltd. Each fund is managed by different investment managers that comprise an
investment committee, which holds voting and dispositive power over the shares held by such fund as
trustee for the fund's members. The investment managers of Apex Provident Funds Management Ltd. are
Avikam Beller, Ofer Orlitzky and Galit Harel. The investment managers of Yuvalim Pension Fund are
Michael Miller, Eli Eyal Shlesinger and Danny Heller. Each such investment manager disclaims any
beneficial ownership except to the extent of his respective pecuniary interest therein. DS Apex Holdings
Ltd. is a public company traded on the TASE. The general managers of DS Apex Holdings Ltd. do not have
voting or investment power over the shares held by funds affiliated with DS Apex Holdings Ltd. DS Apex
Holdings Ltd. holds 100% of the interests of DS Apex Securities &amp; Investment Management Ltd., a member
of the TASE and a broker-dealer under Israeli law. Accordingly, DS Apex Holdings Ltd. and its affiliated
entities are affiliates of a broker-dealer.

</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman"> The securities held by the funds and included herein were acquired in the ordinary course of the funds investment business and not for the purpose of resale or distribution nor are there any agreements or understandings, directly or indirectly, with any person to distribute these securities.
<BR><BR>

D.S. Apex Holdings Ltd.,&nbsp;the parent company&nbsp;of&nbsp;the three shareholders
(as indicated above), also holds an aggregate of 525,157 of shares for
their&nbsp;nostro accounts.


</font></TD>
  </TR>
  <TR>
    <TD width="5%" vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%"><P><font size="2" face="Times New Roman"> (6) </font></P></TD>
    <TD width=0%><font size="2" face="Times New Roman">

T.F.E. Holdings Ltd. is controlled by Mr. Erez Kuperberg.


</font></TD>
  </TR>
  <TR>
    <TD width="5%" vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%"><P><font size="2" face="Times New Roman"> (7) </font></P></TD>
    <TD width=0%><FONT size="2" face="Times New Roman" style="FONT-WEIGHT: normal"> Mr. Fabien Rossignol-Burgos Leon may be deemed to have sole voting and dispositive power with respect to the shares offered for resale by McKenzie Jordan and Cie Inc. </font></TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD width=0%><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%"><P><font size="2" face="Times New Roman"> (8) </font></P></TD>
    <TD width=0%><FONT size="2" face="Times New Roman" style="FONT-WEIGHT: normal"> Mr. Gabriel Jean may be deemed to have sole voting and dispositive power with respect to the shares offered for resale by Kentville Company Inc. </font></TD>
  </TR>
  <TR>
    <TD width="5%" vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%"><P><font size="2" face="Times New Roman"> (9) </font></P></TD>
    <TD width=0%><FONT size="2" face="Times New Roman" style="FONT-WEIGHT: normal"> Mr. Les Szekely may be deemed to have sole voting and dispositive power with respect to the shares offered for resale by Bellite Pty Limited. </font></TD>
  </TR>
</TABLE>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a111"></a>DESCRIPTION OF ORDINARY SHARES</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The following is a summary description of our Ordinary Shares under our Articles of Association.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Dividend and Liquidation Rights. </I> &nbsp;All holders of paid-up Ordinary Shares of the Company have an equal right to participate in a
distribution of (i) dividends, whether by cash or by bonus shares; (ii) Company assets; and (iii)
the Company&#146;s surplus assets upon winding up, all pro rata to the nominal value of the shares
held by them.</FONT></P>
<p align=center><font size=2>23</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors may issue shares and other securities, which are convertible or exercisable into
shares, up to the limit of the Company&#146;s authorized share capital.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s Board of Directors is the organ authorized to decide upon the distribution of dividends
or bonus shares.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Voting, Shareholders&#146; Meetings, Notices and Resolutions. </I> &nbsp;Holders of paid-up Ordinary Shares have one vote for each share held on all matters submitted
to a vote of shareholders. Such voting rights may be affected in the future by the grant of any special
voting rights to the holders of a class of shares with preferential rights.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
quorum required for a general meeting of shareholders (whether annual or special) consists of at
least two shareholders present in person or by proxy/voting instrument and holding, or representing,
at least 33 1/3% of the voting rights of the issued share capital. A meeting adjourned for lack of quorum
shall be postponed by one week, to the same day, time and place, or to a later time if stated in
the invitation to the meeting or in the notice of the meeting. The quorum for the commencement of
the adjourned meeting shall be any number of participants.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise determined by the Israeli Companies Law 1999 or the Company&#146;s Articles of Association,
a resolution requires approval by the holders of a majority of the shares represented at the meeting,
in person or by proxy, and voting thereon.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Companies Law 1999 requires that certain transactions, actions and arrangements be approved by shareholders,
including (i) arrangements with a director as to the terms of his office and compensation and arrangements
for insurance, exemption and indemnity of directors; (ii) certain Extraordinary Transactions (as
defined in the Companies Law) of the Company with its controlling shareholders or any Extraordinary
Transaction in which a controlling shareholder has a personal interest; (iii) certain private placements;
and (iv) any action or Extraordinary Transaction in which the majority of the members of the Board
of Directors have a personal interest.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
shareholder of record is entitled to receive at least a 21 day prior notice of shareholders&#146;
meetings. The accidental omission to give notice of a meeting to any member, or the non receipt of
notice sent to such member, shall not invalidate the proceedings at such meeting. For purposes of
determining the shareholders entitled to notice and to vote, the Board of Directors may fix a record
date subject to the provisions of the law. Currently, Israeli law provides that the record date not
be any earlier than 40 days prior to the meeting.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2> <I>Transfer of Shares. </I> &nbsp;Subject to applicable securities laws, fully paid Ordinary Shares may be transferred freely.
The transfer of Ordinary Shares not fully paid up requires the approval of the Board of Directors. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Modification of Class Rights. </I> &nbsp;Subject to the provisions of any law, the rights attached to any class (unless otherwise provided
by the terms of issue of such class), such as voting, rights to dividends and the like, may be altered
after a resolution is passed by the Company, with the approval of a resolution passed by a majority
of the voting power present by person or proxy and voting hereon at a general meeting of the holders
of the shares of such class, or the written agreement of all the class holders. The rights vested
in the holders of shares of a particular class that were issued with special rights shall not be
deemed to have been altered by the creation or issue of further shares ranking equally with them,
unless otherwise provided in such shares&#146; issue terms.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Election of Directors</I>. &nbsp;The Company&#146;s directors are elected by the shareholders at a shareholders&#146; meeting.
The Ordinary Shares do not have cumulative voting rights in the election of directors. The holders
of Ordinary Shares conferring more than 50% of the voting power present by person or by proxy at
the shareholders&#146; meeting, have the power to elect the directors. The directors elected shall
hold office until the next annual meeting, or sooner if they cease to hold office pursuant to the
provisions of the Company&#146;s Articles. In addition, the Board of Directors may appoint a director
(to fill a vacancy or otherwise) between shareholder meetings, and such appointment shall be valid
until the next annual meeting or until such appointee ceases to hold office pursuant to the provisions
of the Company&#146;s Articles. In compliance with the Companies Law, the Company has two external
directors. The external directors are also appointed by the shareholders and their term of office is three years.</FONT></P>
<p align=center><font size=2>24</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a112"></a>DESCRIPTION OF UNITS</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>We may, from time to time, issue units comprised of one or more of the other securities that may be
offered under this prospectus, in any combination. Each unit will be issued so that the holder of
the unit is also the holder of each security included in the unit. Thus, the holder of a unit will
have the rights and obligations of a holder of each included security. The unit agreement under which
a unit is issued may provide that the securities included in the unit may not be held or transferred
separately at any time, or at any time before a specified date.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
<TD vAlign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman, Times, Serif" size=2>Any applicable prospectus supplement will describe:</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>the material terms of the units and of the securities comprising the units, including whether and under
what circumstances those securities may be held or transferred separately;</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>any material provisions relating to the issuance, payment, settlement, transfer or exchange of the
units or of the securities comprising the units; and</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>any material provisions of the governing unit agreement that differ from those described above.</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
<TD align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a113"></a>DESCRIPTION OF WARRANTS</B></FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Warrants may be issued independently or together with any other securities and may be attached to,
or separate from, such securities. Each series of warrants will be issued under a separate warrant
agreement. The terms of any warrants to be issued and a description of the material provisions of
the applicable warrant agreement will be set forth in the applicable prospectus supplement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The applicable prospectus supplement will describe
the following terms of any warrants in respect of which the prospectus is being delivered:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>the title of such warrants;</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>the aggregate number of such warrants;</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>the price or prices at which such warrants will be issued;</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>the currency or currencies, in which the price of such warrants will be payable;</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>the securities or other rights;</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>the date on which the right to exercise such warrants shall commence and the date on which such right
shall expire;</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>if applicable, the minimum or maximum amount of such warrants which may be exercised at any one time;</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>if applicable, the designation and terms of the securities with which such warrants are issued and
the number of such warrants issued with each such security;</FONT></TD></TR></TABLE>
<p align=center><font size=2>25</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
  <TD width=5% vAlign=top></TD>
  <TD width=5% vAlign=top></TD>
  <TD width=5% vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>if applicable, the date on and after which such warrants and the related securities will be separately
transferable;</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>information with respect to book-entry procedures, if any;</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>any material Israeli and U.S. federal income tax consequences;</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>the anti-dilution provisions of the warrants; and</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
  <TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%></TD>
<TD vAlign=top width=5%><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>any other terms of such warrants, including terms, procedures and limitations relating to the exchange
and exercise of such warrants.</FONT></TD></TR>
<TR>
  <TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD width="5%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a114"></a>PLAN OF DISTRIBUTION</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We and the selling shareholders, and any of their respective
pledgees, donees, assignees, transferees, and successors in interest, may sell any or all of their
securities from time to time on any stock exchange or automated interdealer quotation system on which
the securities are listed, in the over-the-counter market, in privately negotiated transactions or
otherwise, at fixed prices that may be changed, at market prices prevailing at the time of sale,
at prices related to prevailing market prices or at prices otherwise negotiated. We and the selling
shareholders may sell the securities by one or more of the following methods, without limitation: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
  <TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>block trades in which the broker or dealer so engaged will attempt to sell the securities as agent
but may position and resell a portion of the block as principal to facilitate the transaction;</FONT></TD></TR>
<TR>
  <TD width="5%" align="center"></TD>
<TD width="5%" align="left"></TD>
<TD>&nbsp;</TD></TR>
<TR>
  <TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>purchases by a broker or dealer as principal and resale by the broker or dealer for its own account
pursuant to this prospectus;</FONT></TD></TR>
<TR>
  <TD width="5%" align="center"></TD>
<TD width="5%" align="left"></TD>
<TD>&nbsp;</TD></TR>
<TR>
  <TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>an exchange distribution in accordance with the rules of any stock exchange on which the securities
are listed;</FONT></TD></TR>
<TR>
  <TD width="5%" align="center"></TD>
<TD width="5%" align="left"></TD>
<TD>&nbsp;</TD></TR>
<TR>
  <TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>ordinary brokerage transactions and transactions in which the broker-dealer solicits purchases, which
may include long sales or short sales effected after the effective date of the prospectus of which
this registration statement is part;</FONT></TD></TR>
<TR>
  <TD width="5%" align="center"></TD>
<TD width="5%" align="left"></TD>
<TD>&nbsp;</TD></TR>
<TR>
  <TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>privately negotiated transactions;</FONT></TD></TR>
<TR>
  <TD width="5%" align="center"></TD>
<TD width="5%" align="left"></TD>
<TD>&nbsp;</TD></TR>
<TR>
  <TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#147;at the market&#148; or through market makers or into an existing market for the shares;</FONT></TD></TR>
<TR>
  <TD width="5%" align="center"></TD>
<TD width="5%" align="left"></TD>
<TD>&nbsp;</TD></TR>
<TR>
  <TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>through the writing or settlement of options or other hedging transactions on the securities, whether
through an options exchange or otherwise;</FONT></TD></TR>
<TR>
  <TD width="5%" align="center"></TD>
<TD width="5%" align="left"></TD>
<TD>&nbsp;</TD></TR>
<TR>
  <TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>through the distribution of the securities by the selling shareholder to its partners, members or shareholders;</FONT></TD></TR>
<TR>
  <TD width="5%" align="center"></TD>
<TD width="5%" align="left"></TD>
<TD>&nbsp;</TD></TR>
<TR>
  <TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>one or more underwritten offerings on a firm commitment or best efforts basis;</FONT></TD></TR>
<TR>
  <TD width="5%" align="center"></TD>
<TD width="5%" align="left"></TD>
<TD>&nbsp;</TD></TR>
<TR>
  <TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>any combination of any of these methods of sale; and</FONT></TD></TR>
<TR>
  <TD width="5%" align="center"></TD>
<TD width="5%" align="left"></TD>
<TD>&nbsp;</TD></TR>
<TR>
  <TD width=5% align="center" vAlign=top>&nbsp;</TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>any other method permitted pursuant to applicable law.</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling shareholders may also transfer the securities
by gift. We do not know of any arrangements by the selling shareholders for the sale of any of the
securities. </FONT></P>
<p align=center><font size=2>26 </font></p>
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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We and any of the selling shareholders may engage brokers
and dealers, and any brokers or dealers may arrange for other brokers or dealers to participate in
effecting sales of the securities. These brokers, dealers or underwriters may act as principals,
or as agents. Broker-dealers may agree to sell a specified number of the securities at a stipulated
price per security. If the broker-dealer is unable to sell securities acting as agent, it may purchase
as principal any unsold securities at the stipulated price. Broker-dealers who acquire securities
as principals may thereafter resell the securities from time to time in transactions in any stock
exchange or automated interdealer quotation system on which the securities are then listed, at prices
and on terms then prevailing at the time of sale, at prices related to the then-current market price
or in negotiated transactions. Broker-dealers may use block transactions and sales to and through
broker-dealers, including transactions of the nature described above. The selling shareholders may
also sell the securities in accordance with Rule 144 under the Securities Act, rather than pursuant
to this prospectus, regardless of whether the securities are covered by this prospectus. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From time to time, a selling shareholder may pledge,
hypothecate or grant a security interest in some or all of the securities owned by it. The pledgees,
secured parties or persons to whom the securities have been hypothecated will, upon foreclosure in
the event of default, be deemed to be selling shareholders. The number of the selling shareholders&#146;
securities offered under this prospectus will decrease as and when it takes such actions. The plan
of distribution for a selling shareholder&#146;s securities will otherwise remain unchanged.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent required under the Securities Act, the
aggregate amount of the Company&#146;s or the selling shareholders&#146; securities being offered
and the terms of the offering, the names of any agents, brokers, dealers or underwriters and any
applicable commission with respect to a particular offer will be set forth in an accompanying prospectus
supplement. Any underwriters, dealers, brokers or agents participating in the distribution of the
securities may receive compensation in the form of underwriting discounts, concessions, commissions
or fees from the selling shareholders and/or purchasers of selling shareholders&#146; securities,
for whom they may act (which compensation as to a particular broker-dealer might be in excess of
customary commissions). </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling shareholders and any underwriters, brokers,
dealers or agents that participate in the distribution of the securities may be deemed to be &#147;underwriters&#148;
within the meaning of the Securities Act, and any discounts, concessions, commissions or fees received
by them and any profit on the resale of the securities sold by them may be deemed to be underwriting
discounts and commissions.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling shareholders may enter into hedging transactions
with broker-dealers and the broker-dealers may engage in short sales of the securities in the course
of hedging the positions they assume with the selling shareholders, including, without limitation,
in connection with distributions of the securities by those broker-dealers. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The anti-manipulation provisions of Regulation M under
the Exchange Act will apply to purchases and sales of ordinary shares by the selling shareholders.
Under Regulation M, the selling shareholders or their agents may not bid for, purchase, or attempt
to induce any person to bid for or purchase our ordinary shares while the selling shareholders are
distributing ordinary shares covered by this prospectus. The selling shareholders are not permitted
to cover short sales by purchasing ordinary shares while the distribution is taking place. Furthermore,
Regulation M provides for restrictions on market-making activities by persons engaged in the distribution
of the ordinary shares.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling shareholders may enter into option or other
transactions with broker-dealers that involve the delivery of the securities offered hereby to the
broker-dealers, who may then resell or otherwise transfer those securities. The selling shareholders
may also loan or pledge the securities offered hereby to a broker-dealer and the broker-dealer may
sell the securities offered hereby so loaned or upon a default may sell or otherwise transfer the
pledged securities offered hereby. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If underwriters are used in an offering of offered
securities, such offered securities will be acquired by the underwriters for their own account and
may be resold from time to time in one or more transactions, including negotiated transactions, at
a fixed public offering price or at varying prices determined at the time of sale. The securities
may be either offered to the public through underwriting syndicates represented by one or more managing
underwriters or by one or more underwriters without a syndicate. Unless otherwise set forth in the
prospectus supplement, the underwriters will not be obligated to purchase offered securities unless
specified conditions are satisfied, and if the underwriters do purchase any offered securities, they
will purchase all offered securities.</FONT></P>
<p align=center><font size=2>27</font></p>
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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with underwritten offerings of the offered
securities and in accordance with applicable law and industry practice, underwriters may over-allot
or effect transactions that stabilize, maintain or otherwise affect the market price of the offered
securities at levels above those that might otherwise prevail in the open market, including by entering
stabilizing bids, effecting syndicate covering transactions or imposing penalty bids, each of which
is described below.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR>
<TD vAlign=top width=5%></TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>A stabilizing bid means the placing of any bid, or the effecting of any purchase, for the purpose of
pegging, fixing or maintaining the price of a security.</FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD width="5%" align="left" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%></TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>A syndicate covering transaction means the placing of any bid on behalf of the underwriting syndicate
or the effecting of any purchase to reduce a short position created in connection with the offering.</FONT></TD></TR>
<TR>
<TD width="5%" vAlign=top></TD>
<TD width="5%" align="left" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=5%></TD>
<TD width=5% align="left" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>A penalty bid means an arrangement that permits the managing underwriter to reclaim a selling concession
from a syndicate member in connection with the offering when offered securities originally sold by
the syndicate members are purchased in syndicate covering transactions.</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have agreed to indemnify in certain circumstances
the selling shareholders of the securities covered by the registration statement, against certain
liabilities, including liabilities under the Securities Act. Certain selling shareholders have agreed
to indemnify us in certain circumstances against certain liabilities, including liabilities under
the Securities Act. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The securities offered hereby on behalf of the Selling
Shareholders were originally issued to the selling shareholders pursuant to an exemption from the
registration requirements of the Securities Act. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have agreed to pay certain fees and expenses in
connection with this offering, not including any selling commissions. We will not receive any proceeds
from sales of any securities by the selling shareholders, other than the exercise price payable to
us upon exercise of warrants held by selling shareholders. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot assure you that the selling shareholders
will sell all or any of the securities offered for sale under this prospectus. </FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a115"></a>DIVIDEND POLICY </B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company does not currently have a dividend
policy. The declaration and payment of any cash dividends in the future will be determined by the
Board of Directors in light of the conditions existing at that time. This will include our earnings
and financial condition. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The credit agreements that we entered into with
our banks prohibit the payment of dividends. Also, we may only pay cash dividends in any fiscal year,
out of &#147;profits&#148;, as defined under Israeli law. </FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a116"></a>OFFERING EXPENSES </B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a statement of expenses in connection
with the distribution of the securities registered. All amounts shown are estimates except for the
SEC registration fee. The estimates do not include expenses related to offerings of particular securities.
Each prospectus supplement describing an offering of securities will reflect the estimated expenses
related to the offering of securities under that prospectus supplement. </FONT></P>

<table width="100%" cellpadding="0" cellspacing="0">
  <tr bgcolor="#cceeff">
    <td valign="bottom"><font size="2" face="Times New Roman"> SEC registration fees </font></td>
    <td width="1%" valign="bottom"><font size="2" face="Times New Roman"> $ </font></td>
    <td width="10%" align="right" valign="bottom"><font size="2" face="Times New Roman"> 466.84 </font></td>
    <td width="1%" valign="bottom"><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2" face="Times New Roman"> Legal fees and expenses </font></td>
    <td valign="bottom"><font size="2" face="Times New Roman"> $ </font></td>
    <td align="right" valign="bottom"><font size="2" face="Times New Roman"> 25,000 </font></td>
    <td valign="bottom"><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td valign="bottom"><font size="2" face="Times New Roman"> Printing expenses </font></td>
    <td valign="bottom"><font size="2" face="Times New Roman"> $ </font></td>
    <td align="right" valign="bottom"><font size="2" face="Times New Roman"> 2,500 </font></td>
    <td valign="bottom"><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><HR SIZE=1 COLOR="#808080" NOSHADE></td>
    <td valign="bottom"><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2" face="Times New Roman"> TOTAL </font></td>
    <td valign="bottom"><font size="2" face="Times New Roman"> $ </font></td>
    <td align="right" valign="bottom"><font size="2" face="Times New Roman"> 27,966.84 </font></td>
    <td valign="bottom"><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
</table>

<p align=center><font size=2>28</font></p>
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<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a117"></a>VALIDITY OF SECURITIES</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
validity of the securities offered in this prospectus, will be passed upon for us by Amit, Pollak,
Matalon &amp; Co., our Israeli counsel. </FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a118"></a>EXPERTS</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
consolidated financial statements, included in our Form 6-K filed with the SEC on March 31, 2009,
have been audited by Kost Forer Gabbay &amp; Kasierer, independent registered public accounting firm
and a member of Ernst &amp; Young Global as set forth in their report thereon included therein and
incorporated herein by reference. Such consolidated statements are incorporated herein by reference
in reliance upon such report given on the authority of such firm as experts in auditing and accounting. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
consolidated financial statements of our consolidated subsidiary BOS&nbsp;- Supply Chain Solutions
(Lynk) Inc. (formally known as Lynk USA, Inc.), for the year ended December 31, 2008, have been audited
by Arik Eshel, CPA &amp; Assoc., PC, independent registered public accounting firm, as set forth
in their report thereon, included in our Form 6-K filed with the SEC on March 31, 2009.

<BR><BR>     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;    The  assessment  of  goodwill  impairment was  supported  by an  external  valuation  prepared by
Variance Economic Consulting Ltd.



</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a119"></a>WHERE YOU CAN FIND MORE INFORMATION</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have filed with the SEC a registration statement on Form F-3 under the Securities Act, with respect
to the securities offered by this prospectus. However, as is permitted by the rules and regulations
of the SEC, this prospectus, which is part of our registration statement on Form F-3, omits certain
non-material information, exhibits, schedules and undertakings set forth in the registration statement.
For further information about us, and the securities offered by this prospectus, please refer to
the registration statement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, or
the Exchange Act that are applicable to a foreign private issuer. In accordance with the Exchange
Act, we file reports, including annual reports on Form 20-F by June 30 of each year. We also furnish
to the SEC under cover of Form 6-K material information required to be made public in Israel, filed
with and made public by any stock exchange or distributed by us to our shareholders. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
registration statement on Form F-3 of which this prospectus forms a part, including the exhibits
and schedules thereto, and reports and other information filed by us with the SEC may be inspected
without charge and copied at prescribed rates at the SEC&#146;s Public Reference Room at 100 F Street,
N.E., Washington, D.C. 20549. Copies of this material are also available by mail from the Public
Reference Section of the SEC, at 100 F. Street, N.E., Washington D.C. 20549, at prescribed rates.
The public may obtain information on the operation of the Public Reference Room by calling the SEC
at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and information
statements, and other information regarding issuers, such as us, that file electronically with the
SEC (http://www.sec.gov). </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a foreign private issuer, we are exempt from the rules under the Exchange Act prescribing the furnishing
and content of proxy statements to shareholders and our officers, directors and principal shareholders
are exempt from the &#147;short-swing profits&#148; reporting and liability provisions contained
in Section 16 of the Exchange Act and related Exchange Act rules. </FONT></P>
<p align=center><font size=2>29</font></p>
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<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a120"></a>INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
SEC allows us to &#147;incorporate by reference&#148; the information we file with or submit to it,
which means that we can disclose important information to you by referring to those documents. The
information incorporated by reference is considered to be part of this prospectus, and later information
filed with or submitted to the SEC will update and supersede this information. We incorporate by
reference into this prospectus the documents listed below:</FONT></P>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width=5% vAlign=top>&nbsp;</TD>
    <TD width=5% vAlign=top><font size="2" face="Times New Roman">(a)</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">Our annual report on Form 20-F for the fiscal year ended December 31, 2007, filed with the SEC on June 30, 2008. (SEC File No. 001-14184);</font></TD>
  </TR>
  <TR>
    <TD width=5% vAlign=top></TD>
    <TD width=5% vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD width=5% vAlign=top>&nbsp;</TD>
    <TD width=5% vAlign=top><font size="2" face="Times New Roman">(b)</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">The description of our ordinary shares contained in our registration statement on Form 8-A filed with the SEC on April 1, 1996, as amended by the description of our ordinary shares contained in a Form 6-K filed on August 22, 2006; </font></TD>
  </TR>
  <TR>
    <TD width=5% vAlign=top></TD>
    <TD width=5% vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD width=5% vAlign=top>&nbsp;</TD>
    <TD width=5% vAlign=top><font size="2" face="Times New Roman"> (c) </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Our Audited Consolidated Financial Statements as of December 31, 2008 filed under form 6-K filed with the SEC on March 31, 2009 and related disclosures. </font></TD>
  </TR>
  <TR>
    <TD width=5% vAlign=top></TD>
    <TD width=5% vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD width=5% vAlign=top>&nbsp;</TD>
    <TD width=5% vAlign=top><font size="2" face="Times New Roman"> (d) </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">

Our current reports on Form 6-K filed with the SEC on August 14, 2008 (Proxy Statement), August 19, 2008
(paragraphs 1, 3, 4 and 5 of the press release attached to the 6-K), September 9, 2008 (paragraphs 1 and
2 of the press release attached to the 6-K), September 24, 2008, November 10, 2008 (paragraphs 1 and 2
of the press release attached to the 6-K), November 12, 2008 (paragraphs 1 and 2 of the press release
attached to the 6-K), November 17, 2008 (paragraph 1 of the press release attached to the 6-K), November
19, 2008 (paragraphs 1 and 4 of the press release attached to the 6-K) and February 11, 2009  and March
31, 2009.


</font></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

In addition, any reports on Form 6-K submitted to the SEC by the registrant pursuant to the Exchange Act
after the date of the initial registration statement and prior to effectiveness of the registration
statement that we specifically identify in such forms as being incorporated by reference into the
registration statement of which this prospectus forms a part and all subsequent annual reports on Form
20-F filed after the effective date of this registration statement and prior to the termination of this
offering and any reports on Form 6-K subsequently submitted to the SEC or portions thereof that we
specifically identify in such forms as being incorporated by reference into the registration statement
of which this prospectus forms a part, shall be considered to be incorporated into this prospectus by
reference and shall be considered a part of this prospectus from the date of filing or submission of
such documents.


</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
you read the above documents, you may find inconsistencies in information from one document to another.
If you find inconsistencies between the documents and this prospectus, you should rely on the statements
made in the most recent document. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will deliver to each person (including any beneficial owner) to whom this prospectus has been delivered
a copy of any or all of the information that has been incorporated by reference into this prospectus
but not delivered with this prospectus. We will provide this information upon written or oral request,
and at no cost to the requester. Requests should be directed to: </FONT></P>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><font size="2" face="Times New Roman">B.O.S. Better Online Solutions Ltd. </font></TD>
  </TR>
  <TR>
    <TD width="5%" vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><font size="2" face="Times New Roman">20 Freiman Street Rishon LeZion, 75100, Israel</font></TD>
  </TR>
  <TR>
    <TD width=5% vAlign=top>&nbsp;</TD>
    <TD width="6%" vAlign=top><font size="2" face="Times New Roman">Tel.:</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">(+972) 3-954-1000</font></TD>
  </TR>
  <TR>
    <TD width="5%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman">Fax:</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">(+972) 3-954-1001</font></TD>
  </TR>
  <TR>
    <TD width="5%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman">Attn.:</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">Eyal Cohen, CFO</font></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
  </TR>
</TABLE>
<BR>


<p align=center><font size=2>30</font></p>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a121"></a>ENFORCEABILITY OF CIVIL LIABILITIES </B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of our directors and most of our officers reside outside of the United States. It may be difficult
to enforce civil liabilities under the Securities Act and the Exchange Act in original actions instituted
in Israel. However, subject to specified time limitations, Israeli courts may enforce a United States
final executory judgment in a civil matter, including a monetary or compensatory judgment in a non-civil
matter, obtained after due process before a court of competent jurisdiction according to the laws
of the state in which the judgment is given and the rules of private international law currently
prevailing in Israel. The rules of private international law currently prevailing in Israel do not
prohibit the enforcement of a judgment by Israeli courts provided that:</FONT></P>


<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width="5%" vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&#149;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">the judgment is enforceable in the state in which it was given;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&#149;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">adequate service of process has been effected and the defendant has had a reasonable opportunity to present his arguments and evidence;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&#149;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">the judgment and the enforcement of the judgment are not contrary to the law, public policy, security or sovereignty of the State of Israel;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&#149;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">the judgment was not obtained by fraud and does not conflict with any other valid judgment in the same matter between the same parties; and</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&#149;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">an action between the same parties in the same matter is not pending in any Israeli court at the time the lawsuit is instituted in the foreign court.</font></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
subsidiary, Summit Radio Corp. is our agent to receive service of process in any action against us
in any competent court of the United States arising out of this offering or any purchase or sale
of securities in connection with this offering.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
a foreign judgment is enforced by an Israeli court, it generally will be payable in Israeli currency,
which can then be converted into non-Israeli currency and transferred out of Israel. The usual practice
in an action before an Israeli court to recover an amount in a non-Israeli currency is for the Israeli
court to issue a judgment for the equivalent amount in Israeli currency at the rate of exchange in
force on the date of the judgment, but the judgment debtor may make payment in foreign currency.
Pending collection, the amount of the judgment of an Israeli court stated in Israeli currency ordinarily
will be linked to the Israeli consumer price index plus interest at an annual statutory rate set
by Israeli regulations prevailing at the time. Judgment creditors must bear the risk of unfavorable
exchange rates.</FONT></P>
<p align=center><font size=2>31</font></p>
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<PAGE>

<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>BOS BETTER ONLINE SOLUTIONS LTD.</B></FONT></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2><B> $6,250,000 and 4,072,397 of our Ordinary Shares offered by Selling Shareholders </B></FONT></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>PROSPECTUS</B></FONT></td>
  </tr>
  <tr>
    <td><HR align=center width="100%" color="#808080" SIZE=1></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<p align=center><font size=2>32</font></p>
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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>PART II</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>INFORMATION NOT REQUIRED IN PROSPECTUS</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 8. INDEMNIFICATION OF DIRECTORS AND OFFICERS </B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consistent
with the provisions of the Israeli Companies Law, 1999 (the &#147;Companies Law&#148;), the amended
Articles of the Registrant include provisions permitting the Registrant to procure insurance coverage
for its &#147;office holders&#148;, exempt them from certain liabilities and indemnify them, to the
maximum extent permitted by law. An &#147;office holder&#148; is defined in the Companies Law and
the Articles as a director, managing director, chief business manager, executive vice president,
vice president, other manager reporting directly to the managing director and any other person assuming
the responsibilities of any of the foregoing positions without regard to such person&#146;s title. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INSURANCE</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Companies Law, a company may obtain insurance for any of its office holders for: (i) a breach
of his duty of care to the company or to another person; (ii) a breach of his duty of loyalty to
the company provided that the office holder acted in good faith and had reasonable cause to assume
that his act would not prejudice the company&#146;s interests; or (iii) a financial liability imposed
upon him in favor of another person concerning an act preformed by him in his capacity as an office
holder. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The Registrant has obtained directors&#146; and officers&#146; liability insurance covering its officers
and directors and those of its subsidiaries. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INDEMNIFICATION </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;








         The  Companies  Law  provides  that a company may  indemnify  an officer  holder  against:  (i) a
financial  liability  imposed  on him in  favor  of  another  person  by any  judgment  concerning  an act
preformed in his capacity as an office holder; (ii) reasonable  litigation expenses,  including attorneys'
fees,  expended  by the office  holder or charged to him by a court  relating to an act  preformed  in his
capacity as an office holder in connection  with: (a)  proceedings the company  institutes  against him or
instituted on its behalf or by another person;  (b) a criminal  charge from which he was acquitted;  (c) a
criminal  charge in which he was convicted for a criminal  offence that does not require proof of criminal
intent;  and (d) an  investigation  or a proceeding  instituted  against him by an authority  competent to
administrate  such an investigation  or proceeding that ended without the filing of an indictment  against
the office holder and,  either  without any financial  obligation  imposed on the office holder in lieu of
criminal proceedings;  or with financial obligation imposed on him in lieu of criminal  proceedings,  in a
crime which does not require  proof of criminal  intent.  The  Articles of the  Registrant  authorize  the
Registrant to indemnify its office  holders to the fullest extent  permitted  under the law. The Companies
Law also  authorizes  a company to  undertake  in advance to  indemnify  an office  holder with respect to
events specified above,  provided that, with respect to  indemnification  under sub-section (i) above, the
undertaking:  (a) is limited to events which the board of directors  determines can be anticipated,  based
on the  activity  of the  company  at the time the  undertaking  is  given;  (b) is  limited  in amount or
criteria  determined by the board of directors to be reasonable for the  circumstances;  and (c) specifies
the abovementioned events, amounts or criteria.










</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have entered into indemnification agreements with directors and some officers providing for indemnification
under certain circumstances for acts and omissions which may not be covered (or not be covered in
full) by any directors&#146; and officers&#146; liability insurance. Such indemnification agreement
appears in exhibit 4.1 of our Annual Report on Form 20-F filed with the Securities and Exchange Commission
on June 28, 2006. </FONT></P>
<p align=center><font size=2>33</font></p>
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<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EXEMPTION</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Companies Law, an Israeli company may not exempt an office holder from liability for a breach
of his duty of loyalty, but may exempt in advance an office holder from his liability to the company,
in whole or in part, for a breach of his duty of care, provided that in no event shall the office
holder be exempt from any liability for damages caused as a result of a breach of his duty of care
to the company in the event of a &#147;distribution&#148; (as defined in the Companies Law). The
Articles authorize Registrant to exempt any office holder from liability to the Registrant to the
extent permitted by law.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Both
the Companies Law and the Articles provide that the Registrant may not exempt or indemnify an office
holder nor enter into an insurance contract which would provide coverage for liability incurred as
a result of any of the following: (a) a breach by the office holder of his duty of loyalty (however,
the Registrant may insure and indemnify against such breach if the office holder acted in good faith
and had a reasonable basis to assume that the act would not harm the Registrant); (b) a breach by
the office holder of his duty of care if the breach was done intentionally or recklessly, unless
made in negligence only; (c) any act done with the intent to derive an illegal personal benefit;
or (d) any fine or monetary penalty levied against the office holder. </FONT></P>
<p align=center><font size=2>34</font></p>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 9.&nbsp;&nbsp; EXHIBITS </B></FONT></P>

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    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=1> <B>Exhibit No.</B> </font></TD>
    <TD vAlign=top><font size="1">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=1> <B>Description</B> </font></TD>
  </TR>
  <TR>
    <TD vAlign=top><HR align=center width="100%" color=black noShade SIZE=1> </TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><HR align=center width="100%" color=black noShade SIZE=1></TD>
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    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top>&nbsp;</TD>
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    <TD width=12% vAlign=top><font size="2" face="Times New Roman"> 3.1* </font></TD>
    <TD width=3% vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Articles of Association. </font></TD>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 4.1** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Share Purchase Agreement and Registration Rights Agreement, dated as of June 24, 2007, by and between SG Private Banking (Suisse) SA and the Registrant. </font></TD>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 4.2*** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Securities Purchase Agreement and Registration Rights Agreement dated as of December 10, 2007 by and between certain investors and the Registrant. </font></TD>
  </TR>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 4.3*** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Form of Warrant dated as of December 31, 2007 issued by the Registrant to certain investors. </font></TD>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 4.4** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Finder Fee Letter by and between the Company and T.F.E. Holdings Ltd., dated June 3, 2008. </font></TD>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 4.5**** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Share Purchase Agreement and Registration Rights Agreement dated as of July 16, 2008 by and between certain investors and the Registrant. </font></TD>
  </TR>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 4.6**** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Form of Warrant dated as of July 16, 2008 issued by the Registrant to certain investors. </font></TD>
  </TR>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 4.7**** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Share Purchase Agreement and Registration Rights Agreement dated as of August 25, 2008 by and between certain investors and the Registrant. </font></TD>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 4.8**** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Form of Warrant dated as of August 25, 2008 issued by the Registrant to certain investors. </font></TD>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 4.9<SUP>&#8225;</SUP> </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Form of share certificate. </font></TD>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 4.10<SUP>&#8225;&#8225;</SUP> </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Form of Share Purchase Warrant. </font></TD>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 4.11<SUP>&#8225;&#8225;&#8225;</SUP> </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Services Agreement, dated as of April 15, 2003, between Cukierman &amp; Co. Investment House Ltd. and the
Registrant. </font></TD>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman"> 4.12<SUP>&#8225;&#8225;&#8225;</SUP> </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">



M&amp;A Addendum to the Services Agreement between Cukierman &amp; Co. Investment House Ltd. and the Registrant
dated as of August 22, 2004.


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  </TR>




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    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 5.1**** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Opinion of Amit, Pollak, Matalon &amp; Co. Israeli counsel for B.O.S Better Online Solutions Ltd., as to the validity of the ordinary shares. </font></TD>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 10.1**** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">


Amendment No. 1 to Asset Purchase Agreement by and among the Company, Dimex Systems (1988) Ltd. and
Dimex Hagalil Ltd., dated March 23, 2009.


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    <TD vAlign=top><font size="2" face="Times New Roman"> 23.1**** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Consent of Amit, Pollak, Matalon &amp; Co. (included in Exhibit 5.1). </font></TD>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 23.2**** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Consent of Kost Forer Gabbay &amp; Kasierer, a Member Firm of Ernst &amp; Young Global. </font></TD>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 23.3**** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Consents of Arik Eshel, CPA &amp; Assoc., PC. </font></TD>
  </TR>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 23.4**** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Consent of Variance Economic Consulting Ltd. </font></TD>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
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    <TD vAlign=top><font size="2" face="Times New Roman"> 24.1**** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Power of Attorney. </font></TD>
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    <TD vAlign=top></TD>
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    <TD vAlign=top colSpan=3></TD>
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    <TD colspan="3" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="3" vAlign=top><hr align="left" width="100" size="1" color="#808080"></TD>
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    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD width="5%" vAlign=top><font size="2" face="Times New Roman"> * </font></TD>
    <TD width="2%" vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Incorporated by reference to Exhibit 1.2 of the Company&#146;s Annual Report on Form 20-F filed with the SEC on June 28, 2006. </font></TD>
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    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
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    <TD width="5%" vAlign=top><font size="2" face="Times New Roman"> ** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Previously filed. </font></TD>
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  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
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    <TD width="5%" vAlign=top><font size="2" face="Times New Roman"> *** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Incorporated by reference to Exhibit 4.9 of the Company&#146;s Annual Report on Form 20-F filed with the SEC on June, 30, 2008. </font></TD>
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    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
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    <TD width="5%" vAlign=top><font size="2" face="Times New Roman"> **** </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Filed herewith. </font></TD>
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  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
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    <TD width="5%" vAlign=top><font size="2" face="Times New Roman"> &#8225; </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Previously filed with the SEC on November 24, 2003 as Exhibit 4.1 to the Company&#146;s Registration Statement on Form S-8, SEC File Number 333-110696, and incorporated herein by reference. </font></TD>
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  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
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    <TD width="5%" vAlign=top><font size="2" face="Times New Roman"> &#8225;&#8225; </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> To be filed by amendment or as an exhibit to a report on Form 6-K and incorporated herein by  reference.
</font></TD>
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  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
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    <TD width="5%" vAlign=top><font size="2" face="Times New Roman"> &#8225;&#8225;&#8225; </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Incorporated by reference to the Company&#146;s Annual Report on Form 20-F filed on June 17, 2004. </font></TD>
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  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
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    <TD width="5%" vAlign=top><font size="2" face="Times New Roman"> &#8225;&#8225;&#8225;&#8225; </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> Incorporated by reference to the Company&#146;s Annual Report on Form 20-F filed on June 27, 2005. </font></TD>
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<p align=center><font size=2>35</font></p>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 10. UNDERTAKINGS</B></FONT></P>
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    <TD vAlign=top><font size="2" face="Times New Roman">(a)</font></TD>
    <TD vAlign=top colSpan=2><font size="2" face="Times New Roman">The undersigned registrant hereby undertakes:</font></TD>
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    <TD vAlign=top></TD>
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    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">(1)</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</font></TD>
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    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD width=5% vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD width=5% vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">(i)&nbsp;&nbsp; To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</font></TD>
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    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top></TD>
    <TD vAlign=top><font size="2" face="Times New Roman"> (ii)&nbsp;&nbsp;&nbsp;




To reflect in the  prospectus  any facts or events  arising after the effective  date of the  registration
statement  (or  the  most  recent  post-  effective  amendment  thereof)  which,  individually  or in  the
aggregate,  represent a fundamental  change in the  information set forth in the  registration  statement.
Notwithstanding  the  foregoing,  any increase or decrease in volume of  securities  offered (if the total
dollar value of securities  offered  would not exceed that which was  registered)  and any deviation  from
the low or high end of the  estimated  maximum  offering  range may be reflected in the form of prospectus
filed with the Commission  pursuant to Rule 424(b) if, in the  aggregate,  the changes in volume and price
represent  no  more  than  a 20%  change  in  the  maximum  aggregate  offering  price  set  forth  in the
&#147;Calculation of Registration Fee&#148; table in the effective registration statement; and





 </font></TD>
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    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">(iii)&nbsp;&nbsp;&nbsp;To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;</font></TD>
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    <TD vAlign=top></TD>
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    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top colSpan=2><font size="2" face="Times New Roman"><I>provided, however,</I> that Paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if the registration statement is on Form S-3 or Form F-3 and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.</font></TD>
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    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">(2)</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</font></TD>
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    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">(3)</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.</font></TD>
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    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">(4)</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">To file a post-effective amendment to the registration statement to include any financial statements required by Item 8.A of Form 20-F at the start of any delayed offering or throughout a continuous offering. Financial statements and information otherwise required by Section 10(a)(3) of the Act need not be furnished, provided that the registrant includes in the prospectus, by means of a post-effective amendment, financial statements required pursuant to this paragraph (a)(4) and other information necessary to ensure that all other information in the prospectus is at least as current as the date of those financial statements. Notwithstanding the foregoing, with respect to registration statements on Form F-3, a post-effective amendment need not be filed to include financial statements and information required by Section 10(a)(3) of the Act or Item 8.A of Form 20-F
if such financial statements and information are contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section l5(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the Form F-3. </font></TD>
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    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">(5)</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:</font></TD>
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    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
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    <TD></TD>
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    <TD></TD>
  </TR>
</TABLE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%"><font size="2" face="Times New Roman">(i)&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman">If the registrant is relying on Rule 430B:</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Times New Roman">A. &nbsp;</font></td>
    <td><font size="2" face="Times New Roman">Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and</font></td>
  </tr>
</table>
<p align=center><font size=2>36</font></p>
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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td width="5%"><font size="2" face="Times New Roman">B. &nbsp;</font></td>
    <td><font size="2" face="Times New Roman">Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of
such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date; or</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">(ii)</font></td>
    <td colspan="2"><font size="2" face="Times New Roman">If the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the
 registration statement or made in any such document immediately prior to such date of first use. </font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">(6)</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman">That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">(i)</font></td>
    <td colspan="2"><font size="2" face="Times New Roman">Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">(ii)</font></td>
    <td colspan="2"><font size="2" face="Times New Roman">Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">(iii)&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman">The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and</font></td>
  </tr>
</table>
<p align=center><font size=2>37</font></p>
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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td width="5%"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td width="5%"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td width="5%"><font size="2" face="Times New Roman">(iv)&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman">Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td width="5%"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td width="5%"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td width="5%"><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman">(b)</font></td>
    <td colspan="4"><font size="2" face="Times New Roman">The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant&#146;s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan&#146;s annual report pursuant to Section l5(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman">&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td width="5%"><font size="2" face="Times New Roman">(c)</font></td>
    <td colspan="4"><font size="2" face="Times New Roman">Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to the directors, officers and controlling persons of the registrant pursuant to the provisions described under &#147;Item 8. Indemnification of Directors and Officers&#148; above, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.</font></td>
  </tr>
</table>
<p align=center><font size=2>38</font></p>
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<PAGE>
<p align="center"><b><font size="2" face="Times New Roman">SIGNATURES </font></b></p>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>




Pursuant  to the  requirements  of the  Securities  Act of  1933,  the  registrant  certifies  that it has
reasonable  grounds to believe that it meets all of the  requirements  for filing on Form F-3 and has duly
caused this Amendment No. 1 to the  Registration  Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in Rishon LeZion, in the State of Israel, on April 1, 2009.




</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
  <TR style="FONT-SIZE: 1px">
    <TD vAlign=top width="42%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="6%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="2%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="18%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="12%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="20%"><P>&nbsp;</P></TD>
  </TR>
  <TR>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top colSpan=4><P align=center><FONT size=2><B>B.O.S. Better Online Solutions Ltd.</B></FONT></P></TD>
  </TR>
  <TR>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top colSpan=3><HR align=center width="100%" color=gray noShade SIZE=1>
    </TD>
  </TR>
  <TR>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
  </TR>
  <TR>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P align=right><FONT size=2><B> By: </B></FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P><FONT size=2>&nbsp;&nbsp; /s/ Shalom Daskal </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P><FONT size=2>&nbsp; /s/ Eyal Cohen </FONT></P></TD>
  </TR>
  <TR>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P align=right>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><HR align=center width="100%" color=gray noShade SIZE=1>
    </TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><HR align=center width="100%" color=gray noShade SIZE=1>
    </TD>
  </TR>
  <TR>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P align=right><FONT size=2><B> Name: </B> </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P><FONT size=2>&nbsp;&nbsp; Shalom Daskal </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P><FONT size=2>&nbsp;&nbsp; Eyal Cohen </FONT></P></TD>
  </TR>
  <TR>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P align=right>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
  </TR>
  <TR>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P align=right><FONT size=2><B> Title: </B> </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P><FONT size=2>&nbsp; Chief <BR>
&nbsp;&nbsp; Executive Officer </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top><P><FONT size=2>&nbsp;&nbsp; Chief Financial <BR>
&nbsp;&nbsp; Officer </FONT></P></TD>
  </TR>
</TABLE>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>POWER OF ATTORNEY</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> KNOW ALL PERSONS BY THESE PRESENTS, that each individual whose signature appears below constitutes
and appoints Shalom Daskal and Eyal Cohen, and each of them, his or her true and lawful attorneys-in-fact
and agents with full power of substitution and re-substitution, for him or her and in his or her
name, place and stead, in any and all capacities, to (i) act on, sign and file with the Securities
and Exchange Commission any and all amendments (including post-effective amendments) to this Registration
Statement, together with all schedules and exhibits thereto, and any subsequent registration statement
filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended, together with all schedules
and exhibits thereto, (ii) act on, sign and file such certificates, instruments, agreements and other
documents as may be necessary or appropriate in connection therewith, (iii) act on, sign and file
any supplement to any prospectus filed pursuant to Rule 462(b) under the Securities Act of 1933,
as amended, and (iv) take any and all actions which may be necessary or appropriate to be done, as
fully to all intents and purposes as he or she might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or any of them, or their or his or her substitutes,
may lawfully do or cause to be done by virtue hereof. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement
has been signed by the following persons in the capacities and on the dates indicated:&nbsp;&nbsp;</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
  <TR style="FONT-SIZE: 1px">
    <TD vAlign=top width="7%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="8%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="7%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="4%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="15%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="5%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="15%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="5%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="9%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="4%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="9%"><P>&nbsp;</P></TD>
  </TR>
  <TR valign="bottom">
    <TD colSpan=3><P align=center><FONT size=1 face="Times New Roman"><B> Signature </B></FONT></P></TD>
    <TD><p></TD>
    <TD colSpan=3><P align=center><FONT size=1 face="Times New Roman"><B> Title </B></FONT></P></TD>
    <TD><p></TD>
    <TD colSpan=3><P align=center><FONT size=1 face="Times New Roman"><B> Date </B></FONT></P></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><HR align=center width="100%" color=black noShade SIZE=1>
    </TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top><HR align=center width="100%" color=black noShade SIZE=1>
    </TD>
    <TD vAlign=top><p></TD>
    <TD vAlign=top><p></TD>
    <TD vAlign=top><p></TD>
    <TD vAlign=top><HR align=center width="100%" color=black noShade SIZE=1>
    </TD>
    <TD vAlign=top><p></TD>
  </TR>
  <TR>
    <TD vAlign=top><p></TD>
    <TD vAlign=top><p></TD>
    <TD vAlign=top><p></TD>
    <TD vAlign=top><p></TD>
    <TD vAlign=top><p></TD>
    <TD vAlign=top><p></TD>
    <TD vAlign=top><p></TD>
    <TD vAlign=top><p></TD>
    <TD vAlign=top><p></TD>
    <TD vAlign=top><p></TD>
    <TD vAlign=top><p></TD>
  </TR>
  <TR>
    <TD vAlign=top colSpan=3><P align=center><FONT size=2> /s/ Edouard Cukierman </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top colSpan=3><P align=center><FONT size=2> Chairman of the Board of Directors </FONT></P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=bottom colSpan=3><P align=center><FONT size=2> April 1, 2009 </FONT></P></TD>
  </TR>
  <TR>
    <TD vAlign=top colSpan=3><HR align=center width="100%" color=gray noShade SIZE=1>
    </TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top colSpan=3><P align=center>&nbsp;</P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=bottom colSpan=3><P align=center>&nbsp;</P></TD>
  </TR>
  <TR>
    <TD vAlign=top colSpan=3><P align=center><FONT size=2> Mr. Edouard Cukierman </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top colSpan=3><P align=center>&nbsp;</P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=bottom colSpan=3><P align=center>&nbsp;</P></TD>
  </TR>
  <TR>
    <TD vAlign=top colSpan=3><P align=center>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top colSpan=3><P align=center>&nbsp;</P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=bottom colSpan=3><P align=center>&nbsp;</P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom colSpan=3><P align=center><FONT size=2> /s/ Shalom Daskal </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top colSpan=3><P align=center><FONT size=2> Chief Executive Officer<BR>
        (Principal Executive Officer) </FONT></P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=bottom colSpan=3><P align=center><FONT size=2> April 1, 2009 </FONT></P></TD>
  </TR>
  <TR>
    <TD vAlign=top colSpan=3><HR align=center width="100%" color=gray noShade SIZE=1>
    </TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top colSpan=3><P align=center>&nbsp;</P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=bottom colSpan=3><P align=center>&nbsp;</P></TD>
  </TR>
  <TR>
    <TD vAlign=top colSpan=3><P align=center><FONT size=2> Mr. &nbsp;Shalom Daskal </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top colSpan=3><P align=center>&nbsp;</P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=bottom colSpan=3><P align=center>&nbsp;</P></TD>
  </TR>
  <TR>
    <TD vAlign=top colSpan=3><P align=center>&nbsp;</P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top colSpan=3><P align=center>&nbsp;</P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=bottom colSpan=3><P align=center>&nbsp;</P></TD>
  </TR>
  <TR>
    <TD vAlign=bottom colSpan=3><P align=center><FONT size=2> /s/ Eyal Cohen </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top colSpan=3><P align=center><FONT size=2> Chief Financial Officer<BR>
        (Principal Financial and Accounting Officer) </FONT></P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=bottom colSpan=3><P align=center><FONT size=2> April 1, 2009 </FONT></P></TD>
  </TR>
  <TR>
    <TD vAlign=top colSpan=3><HR align=center width="100%" color=gray noShade SIZE=1>
    </TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top colSpan=3><P align=center>&nbsp;</P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=top colSpan=3><P align=center>&nbsp;</P></TD>
  </TR>
  <TR>
    <TD vAlign=top colSpan=3><P align=center><FONT size=2> Mr. Eyal Cohen </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
    <TD vAlign=top colSpan=3><P align=center>&nbsp;</P></TD>
    <TD vAlign=top><P align=center>&nbsp;</P></TD>
    <TD vAlign=bottom colSpan=3><P align=center>&nbsp;</P></TD>
  </TR>
  <TR>
    <TD vAlign=top colSpan=3>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top colSpan=3>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=bottom colSpan=3>&nbsp;</TD>
  </TR>
</TABLE>
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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>

<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
  <TR style="FONT-SIZE: 1px">
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    <TD colSpan=3 vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> /s/ Ronen Zavlik </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> Director </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><font size="2" face="Times New Roman"> April 1, 2009 </FONT></TD>
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    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    <TD colSpan=3 vAlign=top><font size="2" face="Times New Roman">&nbsp;</FONT></TD>
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  <TR align="center">
    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> Mr. Ronen Zavlik </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><P align=center><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    <TD colSpan=3 vAlign=top><P align=center><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> /s/ Nelly Assouline </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> Director </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><font size="2" face="Times New Roman"> April 1, 2009 </FONT></TD>
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    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    <TD colSpan=3 vAlign=top><P align=center><font size="2" face="Times New Roman"> Ms. Nelly Assouline </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> Director </FONT></P></TD>
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    </TD>
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    <TD colSpan=3 vAlign=top><P align=center><font size="2" face="Times New Roman"> Mr. David Golan </FONT></P></TD>
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    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> * </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> Director </FONT></P></TD>
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    <TD colSpan=3 vAlign=top><P align=center><font size="2" face="Times New Roman"> Mr. Dan Hoz </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><P align=center><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><font size="2" face="Times New Roman"> April 1, 2009 </FONT></TD>
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    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> Director </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><font size="2" face="Times New Roman">&nbsp;</FONT></TD>
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    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    <TD colSpan=3 vAlign=top><font size="2" face="Times New Roman">&nbsp;</FONT></TD>
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    <TD colSpan=3 vAlign=top><P align=center><font size="2" face="Times New Roman"> Mr. Jacob Neuhof </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> /s/ Mr. G&#233;rard Limat </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> Director </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><font size="2" face="Times New Roman"> April 1, 2009 </FONT></TD>
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    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    <TD colSpan=3 vAlign=top><P align=center><font size="2" face="Times New Roman"> Mr. G&#233;rard Limat </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><P align=center><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> * </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><P align=center><FONT size=2 face="Times New Roman"> Director </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD colSpan=3 vAlign=top><font size="2" face="Times New Roman"> April 1, 2009 </FONT></TD>
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    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    <TD colSpan=3 vAlign=top><P align=center><font size="2" face="Times New Roman"> Mr. Joel Adler </FONT></P></TD>
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    <TD colSpan=3 vAlign=top><P align=center><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    <TD colSpan=3 vAlign=top><font size="2" face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</FONT></TD>
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    <TD colSpan=3 vAlign=top><FONT size=2 face="Times New Roman"> </FONT></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</FONT></TD>
    <TD colSpan=3 vAlign=top><FONT size=2 face="Times New Roman"> Director </FONT></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</FONT></TD>
    <TD colSpan=3 vAlign=top><font size="2" face="Times New Roman"><FONT size=2></FONT></FONT></TD>
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    <TD colSpan=3 vAlign=top><font size="2" face="Times New Roman"> Mr. Guillaume Binder </FONT></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</FONT></TD>
    <TD colSpan=3 vAlign=top><font size="2" face="Times New Roman">&nbsp;</FONT></TD>
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<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
  <TR style="FONT-SIZE: 1px">
    <TD vAlign=top width="6%"><P align=right>&nbsp;</P></TD>
    <TD vAlign=top width="2%"><P>&nbsp;</P></TD>
    <TD vAlign=top width="48%"><P align=center>&nbsp;</P></TD>
    <TD vAlign=top width="44%"><P>&nbsp;</P></TD>
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    <TD vAlign=top><P align=center><FONT size=2 face="Times New Roman"> <B>Authorized Representative in the U.S.:</B> </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
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    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    <TD vAlign=top><P>&nbsp;</P></TD>
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    <TD vAlign=top><P align=center><FONT size=2 face="Times New Roman"> Summit Radio Corp. </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
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    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    <TD vAlign=top><P>&nbsp;</P></TD>
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    <TD vAlign=top><P align=right><FONT size=2 face="Times New Roman"> <B>By:</B> </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD vAlign=top><P align=center><FONT size=2 face="Times New Roman"> /s/ Shalom Daskal </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
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    <TD vAlign=top><P align=right><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
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    </TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
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  <TR>
    <TD vAlign=top><P align=right><FONT size=2 face="Times New Roman"> <B>Name:</B> </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD vAlign=top><P align=center><font size="2" face="Times New Roman"> Shalom Daskal </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
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    <TD vAlign=top><P align=right><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD vAlign=top><P align=center><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
  </TR>
  <TR>
    <TD vAlign=top><P align=right><FONT size=2 face="Times New Roman"> <B>Title:</B> </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD vAlign=top><P align=center><FONT size=2 face="Times New Roman"> Director </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
  </TR>
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    <TD vAlign=top><P align=right><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD vAlign=top><P align=center><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
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  <TR>
    <TD vAlign=top><P align=right><FONT size=2 face="Times New Roman"> <B>Date:</B> </FONT></P></TD>
    <TD vAlign=top><P><font size="2" face="Times New Roman">&nbsp;</FONT></P></TD>
    <TD vAlign=top><P align=center><FONT size=2 face="Times New Roman"> April 1, 2009 </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
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    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</FONT></TD>
    <TD vAlign=top>&nbsp;</TD>
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</TABLE>
<p><FONT face="Times New Roman, Times, Serif" size=2> *By&nbsp; <U>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Eyal Cohen &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
</U> </FONT><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Attorney-in-Fact) </FONT></p>

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<TYPE>EX-4.5
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<FILENAME>exhibit_4-5.htm
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     <!-- Control Number: 85891                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3/A                                                            -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3/A</TITLE>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 4.5</B></U> </FONT> </P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SHARE PURCHASE
AGREEMENT </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This <B>SHARE PURCHASE AGREEMENT</B>
(this &#147;Agreement&#148;) is made and entered into as of July 16, 2008, by and among
B.O.S Better Online Solutions Ltd. (the &#147;Company&#148;), and the other parties listed
on Schedule I hereto (each, an &#147;Investor&#148; and collectively, the
&#147;Investors&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
subject to the terms and conditions herein, the Investors desire to acquire from the
Company, and the Company desires to issue to the Investors Ordinary Shares of the Company,
par value NIS 4.00 each (each, a &#147;Share&#148; and collectively, the
&#147;Shares&#148;, and when referred to the shares to be purchased by each Investor, such
number of shares as set forth opposite such Investor&#146;s name in the column labeled
&#147;No. of Shares&#148; on <U>Schedule 1</U> hereto) for the amounts set forth in
<U>Schedule 1</U> hereto. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and the Investors hereby agree as follows: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1. &nbsp;&nbsp;&nbsp;&nbsp;<B>PURCHASE
AND SALE OF SHARES.</B> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the satisfaction of the terms and conditions described in this Agreement, at the
Closing (as defined below), the Company agrees to sell to each Investor, and each
Investor, severally and not jointly, agrees to purchase from the Company, such number of
Shares, against such amount, as is set forth opposite such Investor&#146;s name in the
columns labeled &#147;No. of Shares&#148;and &#147;Purchase Amount&#148;, respectively,
on <U>Schedule 1</U> hereto, and reflecting a price of $1.35 per Ordinary Share (the
&#147;PPS&#148;).  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Closing, the Company shall issue and deliver to the Investors a Warrant in the form
attached hereto as <U>Exhibit A</U> (the &#147;<B>Warrant</B>&#148;) to purchase such
number of Shares as is set forth opposite such Investor&#146;s name in the columns
labeled &#147;No. of Warrants&#148;. The Warrant shall be exercisable for a period of 2
(two) years from the date of issuance (the &#147;Warrant Issue Date&#148;). The Warrant&#146;s
exercise price shall be $1.60 per Share.  </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>CLOSING.</B> The execution and delivery of this Agreement shall occur upon
          delivery by facsimile of executed signature pages of this Agreement and all
          other documents, instruments and writings required to be delivered pursuant to
          this Agreement to Amit, Pollak, Matalon &amp; Co., NITSBA Tower, 17 Yitzhak
          Sadeh St., Tel-Aviv 67775 Israel attn: Shlomo Landress, Adv., Fax: (972) 3
          568-9001. The closing of the purchase and sale of the Shares will take place ten
          (10) days after the date hereof (or, if such date is not a business day, on the
          next business day thereafter), provided on such date the conditions for Closing
          set forth in Sections 5 and 6 herein shall have been satisfied in full or waived
          by the appropriate party thereunder, or at such different date as may be
          mutually acceptable to the Investors and the Company (the &#147;Closing&#148;).
          At the Closing, each Investor shall deliver to the Company payment in full
          (without deduction of any fees or taxes) for the Shares to be purchased by such
          Investor in the amount set forth opposite such Investor&#146;s name in the
          column labeled &#147;Purchase Amount&#148; on <U>Schedule 1</U>, via wire
          transfer of immediately available funds or bank or cashier&#146;s check. At the
          Closing, the Company will deliver to each Investor a duly executed share
          certificate reflecting such number of shares set forth opposite such
          Investor&#146;s name in the column labeled &#147;No. of Shares&#148;. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>REPRESENTATIONS AND WARRANTIES BY THE COMPANY. </B>The Company hereby
          represents and warrants to each Investor that: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Corporate
Organization</U>. The Company is a corporation duly incorporated and validly existing
under the laws of Israel, and has the corporate power to own its property and to carry on
its business as now being conducted. The Company&#146;s shares are traded on the Nasdaq
Global Market and on the Tel-Aviv Stock Exchange and as such it is subject to both US and
Israeli Securities Laws.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Due
Authorization and Valid Issuance</U>. The Company has the corporate power to enter into
this Agreement and the Registration Rights Agreement (the &#147;Transaction Documents&#148;).
The Transaction Documents have been, or will have been, at the time of their respective
execution and delivery, duly executed and delivered by the Company. Prior to the Closing
of this Agreement, the Company shall have acted to complete all corporate action
necessary on its part for the issuance, sale and delivery of the Shares. The Shares being
purchased by the Investors hereunder will, upon issuance and payment therefore pursuant
to the terms hereof, be duly authorized, validly issued, fully-paid and nonassessable.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Binding
Agreement</U>. The Transaction Documents constitute valid and legally binding obligations
of the Company enforceable against the Company in accordance with their respective terms,
except as (i) such enforceability may be limited by bankruptcy, insolvency,
reorganization, arrangement, moratorium or similar laws relating to or affecting the
rights of creditors and contracting parties generally, (ii) the remedy of specific
performance and injunctive and other forms of equitable relief may be subject to
equitable defenses and to the discretion of the court before which any proceeding
therefore may be brought, and (iii) rights to indemnity and contribution may be limited
by Israeli or U.S. state or federal securities laws applicable to the Company or by the
public policy underlying such laws.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-Contravention</U>.
Neither the execution and delivery of the Transaction Documents, nor the consummation of
the transactions or the performance of the obligations contemplated hereby and thereby
will result in any violation or breach of Company&#146;s articles of association,
by-laws, board resolutions or shareholders resolutions.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Consent</U>. To the Company&#146;s best knowledge, and in reliance on the representations
of the Investors given in Section 4 hereof, except for reporting obligations and
approvals required under applicable security laws and market regulations in Israel and
the United States and for notices to or approvals by the Office of the Chief Scientist
and the Investment Center of the Ministry of Industry, Trade and Labor (if required), no
consent of any governmental body or third party is required to be made or obtained by the
Company in connection with the execution and delivery of the Transaction Documents by the
Company or the consummation by the Company of the transactions or the performance of the
obligations contemplated hereby and thereby by the Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Capitalization</U>.
The authorized share capital of the Company consists of 35,000,000 Ordinary Shares, par
value NIS 4.00 per share, of which, as of June 15, 2008, 11,467,778 Ordinary Shares are
issued and outstanding. The Company is currently in discussions with other investors with
respect to additional financings, in which financings the price per share may be
different than the PPS hereunder.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Financial
Statements</U>. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
audited consolidated financial statements of the Company as of December 31, 2007 and the
related notes thereto, as filed by the Company with the Securities and Exchange Commission
(&#147;SEC&#148;) under Form 20-F on June 30, 2008 fairly present the financial position
of the Company as of their respective dates, and have been prepared in accordance with the
books and records of the Company as at the applicable dates and for the applicable
periods. Such financial statements have been prepared in accordance with generally
accepted accounting principles applied on a consistent basis throughout the periods
therein specified, except as may be disclosed<B> </B>in the notes to such financial
statements, or as may be permitted by the Securities and Exchange Commission and except as
disclosed in the filings the Company made in connection with such statements, if any. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Legal
Proceedings</U>. Except as disclosed in the Company&#146;s public filings, there is no
material legal or governmental proceeding pending or, to the knowledge of the Company,
threatened to which the Company is or may be a party.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Intellectual
Property</U>. (i) The Company, either directly or through its subsidiaries, owns or
possesses sufficient rights to use all material patents, patent rights, trademarks,
copyrights, licenses, inventions, trade secrets, trade names and know-how (collectively,
&#147;Intellectual Property&#148;) described or referred to in the Company&#146;s public
filings as owned or possessed by it,<B></B>except where the failure to own or possess
would not have a material adverse effect on the Company, (ii) to the knowledge of the
Company, the Company is not infringing, nor has it received any notice of, any asserted
infringement of, any rights of a third party with respect to any Intellectual Property
that, individually or in the aggregate, would have a material adverse effect on the
Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Law</U>. To the knowledge of the Company, the business of the Company is conducted
in accordance with applicable laws, except to extent that, individually or in the
aggregate, would not have a material adverse effect on the Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.11 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Disclosure</U>.
The representations and warranties of the Company contained in this Section&nbsp;3 as of
the date hereof and as of the Closing, and in the Company&#146;s public filings with the
SEC, do not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements herein, in light of the circumstances under which
they are made, not misleading. Investors are referred to the Company&#146;s Annual Report
on Form 20-F filed with the SEC on June 30, 2008.  </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>REPRESENTATIONS OF THE INVESTORS.</B> Each of the Investors severally
          represents to the Company that: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Enforceability</U>.
If such Investor is a corporation, partnership, limited liability company, trust or other
entity, (i) it is authorized and qualified and has full right and power to become an
investor in the Company, is authorized to purchase the Shares and to perform its
obligations pursuant to the provisions hereof, (ii) the person signing the Transaction
Documents and any other instrument executed and delivered therewith on behalf of such
Investor has been duly authorized by such entity and has full power and authority to do
so, and (iii) such Investor has not been formed for the specific purpose of acquiring an
interest in the Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Restrictions
on Transferability and Hedging</U>. </FONT> </P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.2.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such
Investor understands that (i) the Shares have not yet been registered under the
Securities Act of 1933, or under the laws of any other jurisdiction; (ii) such Shares
cannot be sold, transferred or otherwise disposed of unless they are subsequently
registered under the Securities Act and, where required, under the laws of other
jurisdictions or unless an exemption from registration is then available; (iii) there is
now no registration statement on file with the Securities and Exchange Commission with
respect to the Shares to be purchased by the Investor.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.2.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such
Investor acknowledges and agrees that the certificates representing the Shares shall bear
restrictive legends as counsel to the Company may determine are necessary or appropriate,
including without limitation, legends under applicable securities laws similar to the
following:  </FONT></P></TD>
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<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;The shares represented by this certificate have not been registered under the Securities Act
of 1933. The shares have been acquired for investment and may not be sold, transferred,
assigned 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 the Company&#146;s counsel that registration
under such Act is not required.&#148; </FONT></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company will not register any transfer of Shares not made pursuant to registration under
the Securities Act, or pursuant to an available exemption from registration.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Investor agrees not to engage in hedging transactions with regard to the Shares sold
pursuant to this Agreement.  </FONT></P></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Offshore
Transaction</U>. The Investor is not a &#147;U.S. Person&#148;, as such term is defined
in Regulation S under the Securities Act of 1933 (&#147;Reg. S&#148;), its principal
address is outside the United States and it has no present intention of becoming a
resident of (or moving its principal place of business to) the United States. The
Investor was located outside the United States at the time any offer to sell and any
other action in connection with such offer and sale was made to the Investor and at the
time that the buy order was originated by the Investor. The Shares are being acquired
solely for the Investor&#146;s own account, and in no event and without derogating from
the foregoing, for the account or the benefit of a U.S. person. The Investor shall comply
with the applicable distribution compliance periods pursuant to Reg. S.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Investment
Purposes</U>. The Shares are being acquired for investment purposes. The Shares are not
being purchased with a view to, or for sale in connection with, any distribution or other
disposition thereof. The Investor has no present plans to enter into any contract,
undertaking, agreement or arrangement for any such resale, distribution or other
disposition and it will not divide its interest in the Company&#146;s Shares with others,
resell or otherwise distribute the Shares in violation of federal or state US Securities
laws or the Israeli Securities Law.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I<U>nformation
and Advice</U>. </FONT> </P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.5.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such
Investor has carefully reviewed and understands the risks of a purchase of the Shares. In
connection with such Investor&#146;s investment in the Company, it has obtained the
advice of its own investment advisors, counsel and accountants (the &#147;Advisors&#148;).
Such Investor and its Advisors have reviewed the Company&#146;s public filings and have
been furnished with all materials relating to the Company or the offering of the Shares
(the &#147;Offering&#148;) that they have requested. Such Investor and its Advisors have
been afforded the opportunity to ask questions of the Company concerning the financial
and other affairs of the Company and the conditions of the Offering and to obtain any
additional information necessary to verify the accuracy of any representations or
information set forth with respect to the Shares.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has answered all reasonable inquiries that such Investor and its Advisors have
made concerning the Company or any other matters relating to the creation and operations
of the Company and the terms and conditions of the Offering.  </FONT></P></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Sophistication
and Risk.</U> </FONT> </P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
has such knowledge and experience in financial and business matters, that it is capable
of evaluating, and has evaluated, the merits and risks of the Offering. By reason of its
business or financial experience, it has the capacity to protect its interests in
connection with an investment in the Company.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
understands that no Israeli or U.S. federal or state agency has passed upon the Shares or
made any finding or determination as to the fairness of the transactions contemplated in
the Transaction Documents.  </FONT></P></TD>
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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
understands that the Shares are speculative investments, which involve a high degree of
risk, including the risk that such Investor might lose its entire amount invested in the
Company.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
understands that any tax benefits that may be available to such Investor may be lost
through adoption of new laws, amendments to existing laws or regulations, or changes in
the interpretation of existing laws and regulations.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
has the financial ability to bear the economic risk of its investment in the Company and
has adequate net worth and means of providing for the Investor&#146;s current needs and
contingencies to sustain a complete loss of the Investor&#146;s investment and has no
need for liquidity in the Investor&#146;s investment in the Company.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 5 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is an &#147;Accredited Investor,&#148; as such term is defined in Rule 501 of Regulation
D under the Securities Act of 1933.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
solicitation</U>. At no time was such Investor 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 Offering.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Broker-Dealer</U>.
The Investor is not a broker-dealer, nor is it an affiliate of any broker-dealer.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further
Indebtedness</U>. Such Investor acknowledges that no provision of the Transaction
Documents executed and delivered by the Company restricts, or shall be construed to
restrict, in any way the ability of the Company to incur indebtedness or to issue share
capital or other equity securities (or securities convertible into equity securities) of
the Company or to grant liens on its property and assets.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Voting
and/or Investment Control over the Investor</U>. Each Investor has made available to the
Company a list of individuals who have or share voting and/or investment control over
such Investor. The Investor shall update such list as reasonably requested by the Company
to comply with request for such information from any regulatory body.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.11 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Independent
Investment</U>. No Investor has agreed to act with any other Investor for the purpose of
acquiring, holding, voting or disposing of the Shares purchased hereunder, and each
Investor is acting independently with respect to its investment in the Shares. Nothing
contained herein or in any Transaction Document, and no action taken by any Investor
pursuant thereto, shall be deemed to constitute the Investors, or any of them, as a
partnership, an association, a joint venture or any other kind of entity, or create a
presumption that the Investors, or any of them, are in any way acting in concert or as a
group with respect to such obligations or the transactions contemplated by the
Transaction Documents.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.12 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Holdings</U>.
<U>Schedule 1</U> attached hereto reflects the holdings of the Company&#146;s shares by
each Investor and its affiliates as of the date hereof, and as of the Closing.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.13 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Availability
of Exemptions</U>. The Investor understands that the Shares are being offered and sold in
reliance on a transactional exemption or exemptions from the registration requirements of
Israeli and U.S. Federal and state securities laws and the Company is relying upon the
truth and accuracy of the representations, warranties, agreements, acknowledgments and
understandings of such Investor set forth herein in order to determine the applicability
of such exemptions and the suitability of such Investor to acquire the Shares.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.14 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;Indemnification<B>.
</B></U> The Investor agrees to indemnify, defend and hold harmless the Company and its
shareholders, directors, executive officers and affiliates from and against all
liability, damage, losses, costs and expenses (including reasonable attorneys&#146; fees)
which they may incur by reason of the failure of the Investor to fulfill any of the terms
and conditions of this Agreement, or by reason of any breach of the representations and
warranties made by the Investor herein or in any document provided by the Investor to any
executive officers, directors, the Company or any of their affiliates.  </FONT></P>

<p align=center>
<font size=2>- 6 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.15 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Disclosure</U>.
The representations and warranties of the Investor contained in this Section&nbsp;4 as of
the date hereof and as of the Closing, do not contain any untrue statement of a material
fact or omit to state a material fact required to be stated herein or necessary to make
the statements herein, in light of the circumstances under which they are made, not
misleading. Each Investor understands and confirms that the Company will rely on the
foregoing representations in effecting the transaction contemplated in the Transaction
Documents and other transactions in securities of the Company.  </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>CONDITIONS OF EACH INVESTOR&#146;S OBLIGATION AT THE CLOSING. </B>The
          obligation of each Investor to purchase its respective Shares is subject to the
          fulfillment or waiver by such Investor prior to or on the date of the Closing of
          the conditions set forth in this Section 5. In the event that any such condition
          is not satisfied to the satisfaction of an Investor, then such non-satisfied
          Investor shall not be obligated to proceed with the purchase of such securities. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties</U>. The representations and warranties of the Company under this
Agreement shall be true in all material respects as of the Closing, with the same effect
as though made on and as of such date.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Agreements</U>. The Company shall have performed and complied in all material
respects with all agreements or conditions required by this Agreement to be performed and
complied with by it prior to or as of the Closing.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration
Rights Agreement</U>. As of the Closing, the Registration Rights Agreement in the form
attached hereto as <U>Exhibit B</U> (the &#147;Registration Rights Agreement&#148;) shall
have been executed and delivered by the Company and each Investor.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Injunction</U>. No statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or endorsed by any court or
governmental authority of competent jurisdiction which prohibits the consummation of any
of the transactions contemplated by this Agreement  </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>CONDITIONS OF THE COMPANY&#146;S OBLIGATION AT THE CLOSING. </B>The
          obligation of the Company to issue the Shares to the Investors at the Closing is
          subject to the fulfillment or waiver by the Company prior to or on the Closing
          of the conditions set forth in this Section 6. In the event that any such
          condition is not satisfied to the satisfaction of the Company, then the Company
          shall not be obligated to proceed with the sale of the securities under this
          Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties</U>. The representations and warranties of all Investors under this
Agreement shall be true in all material respects as of the Closing, with the same effect
as though made on and as of such date.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Agreements</U>. All Investors shall have performed and complied in all respects with
all agreements or conditions required by this Agreement to be performed and complied with
by it prior to or as of the Closing.  </FONT></P>

<p align=center>
<font size=2>- 7 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;6.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration
Rights Agreement</U>. As of the Closing, the Registration Rights Agreement shall have been
executed and delivered by all of the Investors. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Injunction</U>. No statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or endorsed by any court or
governmental authority of competent jurisdiction which prohibits the consummation of any
of the transactions contemplated by this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Delivery
of Purchase Amount</U>. Each of the Investors shall have delivered to the Company its
respective Purchase Amount for the Shares at the Closing Date.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Government
Approvals</U>. The Company shall have received all necessary governmental approvals with
respect to the transactions contemplated hereby. The Investors shall have executed any
confirmations required by the Office of Chief Scientist. .  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices
to Nasdaq and the TASE</U>. The Company shall have made all required filings of notices
with Nasdaq and the Tel Aviv Stock Exchange. The Company shall use its best efforts to
complete such filings.  </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>CONFIDENTIALITY. </B>Any information disclosed to each of the Investors or
          their respective Advisors , which has not previously been made available to the
          general public by the Company, if any, shall be considered Confidential
          Information. Each Investor acknowledges the confidential nature of the
          Confidential Information it may have received, and agrees that the Confidential
          Information is the valuable property of the Company. Each Investor agrees that
          it and its Advisors shall not reproduce any of the Confidential Information
          without the prior written consent of the Company, nor shall they use any
          Confidential Information for any purpose except as permitted by and in the
          performance of this Agreement, or divulge all or any part of the Confidential
          Information to any third party. The confidentiality obligations undertaken by
          the Investors hereunder will remain in full force and effect regardless of the
          execution and consummation or termination of this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8. &nbsp;&nbsp;&nbsp;&nbsp;<B>MISCELLANEOUS</B>. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments.</U> This
Agreement may be modified, supplemented or amended only by a written instrument executed
by the Company and the Investors (or, the applicable Investor, as the case may be).  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
Any notice that is required or provided to be given under this Agreement shall be deemed
to have been sufficiently given and received for all purposes, (i) when delivered in
writing by hand, upon delivery; (ii) if sent via facsimile, upon transmission and
electronic confirmation of receipt (and if transmitted and received on a non-business
day, on the first business day following transmission and electronic confirmation of
receipt), (iii) seven (7) business days (and fourteen (14) business days for
international mail) after being sent by certified or registered mail, postage and charges
prepaid, return receipt requested, or (iv) three (3) business days after being sent by
internationally overnight delivery providing receipt of delivery, to the following
addresses:  </FONT></P>

<p align=center>
<font size=2>- 8 -</font></p>
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<page>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
if
to the Company, B.O.S Better Online Solutions Ltd., 20 Freiman Street, Rishon Lezion,
75101 Israel Attn: Mr. Eyal Cohen, CFO, facsimile: (972) 3 954-1003, with a copy to Amit,
Pollak Matalon &amp; Co., Nitsba Tower, 17 Yitzhak Sadeh St., Tel-Aviv 67775 Israel attn:
Shlomo Landress, Adv. Fax: (972) 3 568-9000; or at any other address designated by the
Company to the Investors in writing; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
if
to an Investor, to its address listed on <U>Schedule 1</U> hereto or at any other address
designated by the Investor to the Company in writing. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survival
of Representations and Warranties</U>. All representations and warranties contained
herein or in any Transaction Document or in any other certificate delivered hereunder or
thereunder shall survive after the execution and delivery of this Agreement or such
certificate or document, as the case may be, for a period of 24 months from the date
hereof. All covenants and agreements in any Transaction Documents shall survive in
accordance with their terms. This Section shall survive the termination of this Agreement
for any reason.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Delays
or Omissions; Waiver</U>. Except as expressly provided herein, no delay or omission to
exercise any right, power or remedy accruing to any party under this Agreement shall
impair any such right, power or remedy of such party nor shall it be construed to be a
waiver of any breach or default, or an acquiescence thereto, or of a similar breach or
default thereafter occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter occurring. Any
waiver, permit, consent or approval of any kind or character on the part of any party
hereto of any breach or default under this Agreement, or any waiver on the part of any
party of any provisions or conditions of this Agreement, must be in writing and shall be
effective only to the extent specifically set forth in such writing.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Other
Remedies</U>. Any and all remedies herein expressly conferred upon a party shall be
deemed cumulative with, and not exclusive of, any other remedy conferred hereby or by law
on such party, and the exercise of any one remedy shall not preclude the exercise of any
other.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire
Agreement</U>. This Agreement and the exhibits and schedules hereto, constitute the
entire understanding and agreement of the parties hereto with respect to the subject
matter hereof and thereof and supersede all prior and contemporaneous agreements or
understandings, inducements or conditions, express or implied, written or oral, between
the parties with respect hereto and thereto.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings.</U> All
section headings herein are inserted for convenience only and shall not modify or affect
the construction or interpretation of any provision of this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
Should any one or more of the provisions of this Agreement (including its exhibits and
schedules) or of any agreement entered into pursuant to this Agreement be determined to
be illegal or unenforceable, all other provisions of this Agreement and of each other
agreement entered into pursuant to this Agreement, shall be given effect separately from
the provision or provisions determined to be illegal or unenforceable and shall not be
affected thereby. The parties further agree to replace such void or unenforceable
provision of this Agreement with a valid and enforceable provision, which will achieve,
to the extent possible, the economic, business and other purposes of the void or
unenforceable provision.  </FONT></P>

<p align=center>
<font size=2>- 9 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment</U>.
This Agreement may not be assigned in whole or in part by any Investor without the prior
written consent of the Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law and Venue</U>. This Agreement shall be construed in accordance with and governed by
the internal laws of the State of Israel, without regard to conflict of laws provisions.
Any dispute arising under or in relation to this Agreement shall be adjudicated in the
competent court of Tel Aviv-Jaffa district only, and each of the parties hereby submits
irrevocably to the exclusive jurisdiction of such court.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.11 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.
This Agreement may be executed concurrently in any number of counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.12 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further
Actions.</U> At any time and from time to time, each party agrees, without further
consideration, to take such actions and to execute and deliver such documents as may be
reasonably necessary to effectuate the purposes of this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.13 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Independent
Nature of Investors&#146; Obligations and Rights</U>. The obligations of each Investor
under any Transaction Document are several and not joint with the obligations of any
other Investor, and no Investor shall be responsible in any way for the performance of
the obligations of any other Investor under any Transaction Document.  </FONT></P>

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<p align=center>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>IN WITNESS WHEREOF</B>, the
undersigned have executed and delivered this Agreement as of the date first set forth
above. </FONT></P>


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<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.O.S. BETTER ONLINE SOLUTIONS LTD.<BR><BR>
<BR>By: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>Title:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MRS. SOPHIE DULAC<BR><BR><BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
</TR>
</TABLE>
<BR>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><I>Address for Notices:</I> </FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><I>Address for Notices:</I> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>20 Freiman Street</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>86 Avenue Niel</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Rishon Lezion 75101, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>75017 Paris, France</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Attention: &nbsp;&nbsp;&nbsp;Eyal Cohen , CFO</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Facsimile: &nbsp;&nbsp;&nbsp;(972) 3 954-1003</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Facsimile:</FONT></TD></TR>
</TABLE>
<BR>






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<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MCKENZIE JORDAN AND CIE INC.<BR><BR>
<BR>By: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>Title:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>KENTVILLE COMPANY INC.<BR><BR>
<BR>By: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>Title:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
</TR>
</TABLE>
<BR>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><I>Address for Notices:</I> </FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><I>Address for Notices:</I> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>1000 de la Gaucheti&egrave;re West No 2900,</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>1000 de la Gaucheti&egrave;re West No 2900,</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Montr&eacute;al,
Qu&eacute;bec, Canada H3B 4W5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Montr&eacute;al,
Qu&eacute;bec, Canada H3B 4W5</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Attention:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Attention:</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Facsimile:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Facsimile:</FONT></TD></TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 11 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Schedule 1</U> </FONT> </H1>





<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3 align=left><FONT FACE="Times New Roman" SIZE=1>INVESTOR'S NAME AND ADDRESS</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>PURCHASE<BR>
AMOUNT</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>NO. OF SHARES<BR>
PURCHASED</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>NO. OF<BR>
WARRANTS</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="57%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2"><B>Mrs. Sophie Dulac</B> </FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>86 Avenue Niel, 75017</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Paris, France</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>   335,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>248,148</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>124,074</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>McKenzie Jordan and Cie Inc.</B> </FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Registrar of Quebec</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>number 1161443438</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>1000 de la Gaucheti&egrave;re</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>West No 2900,</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Montr&eacute;al,
Qu&eacute;bec</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Canada H3B 4W5</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   335,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>248,148</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>124,074</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE="2"><B>Kentville Company Inc.</B> </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Registrar of Quebec,</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>number no 1161426029,</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>1000 de la Gaucheti&egrave;re</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>West No 2900,</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Montr&eacute;al,
Qu&eacute;bec</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Canada H3B 4W5</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>   330,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>244,444</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>122,222</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B><U>Total</U></B> </FONT> </TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>&nbsp;</B> </FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>$</B> </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B> 1,000,000</B> </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>&nbsp;</B> </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>740,740</B> </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>&nbsp;</B> </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>370,370</B> </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>&nbsp;</B> </FONT></TD></TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 12 - </font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REGISTRATION RIGHTS
AGREEMENT </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Registration Rights Agreement (this <B>&#147;Agreement&#148;</B>) is made and entered into
as of July 16, 2008, by and between B.O.S. Better Online Solutions Ltd., an Israeli
corporation (the &#147;<B>Company</B>&#148;), and the other parties listed on Schedule 1
hereto (each an &#147;<B>Investor</B>&#148; and collectively, the
&#147;<B>Investors</B>&#148;). The Company and the Investors shall be referred to herein
collectively as the &#147;<B>Parties</B>&#148;. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement is made pursuant to the Share Purchase Agreement of even date hereof, by and
between the Investors and the Company (the <B>&#147;Share Purchase Agreement&#148;</B>). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company and each of the Investors hereby agree as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Definitions</U>. Capitalized terms used and not otherwise defined herein that
          are defined in the Share Purchase Agreement shall have the meanings given to
          such terms in the Share Purchase Agreement. As used in this Agreement, the
          following terms shall have the following meanings: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Affiliate</I>&#148;
of any specified person means any other person, directly or indirectly, controlling or
controlled by or under common control with such specified person. For the purpose of this
definition &#147;control&#148; as used with respect to any person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the
management or policies of such person, whether through the ownership of voting securities
or by agreement or otherwise. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Commission</I>&#148;
means the Securities and Exchange Commission. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Ordinary
S</I>hares&#148; means the Company&#146;s Ordinary Shares, NIS 4.00 nominal value per
share. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Exchange
Act</I>&#148; means the Securities Exchange Act of 1934, as amended, and any successor
statute. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Holder</I>&#148;
or &#147;<I>Holders</I>&#148; means the Investor or any of its successors to the extent
any of them hold Registrable Securities, provided that only registered holders of
Registrable Securities shall be counted for purposes of calculating any proportion of
holders entitled to take any action, receive any damages or give any notice pursuant to
this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Indemnified
Party</I>&#148; shall have the meaning set forth in Section 6(c). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Indemnifying
Party</I>&#148; shall have the meaning set forth in Section 6(c). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Majority
Holders</I>&#148; shall means the Holders of a majority of the then outstanding aggregate
amount of Registrable Securities registered under an applicable Registration Statement,
provided that Registrable Securities which have been sold or otherwise transferred
pursuant to the Registration Statement or Rule 144 or are transferable without restriction
under Rule 144 shall not be included in the calculation of Majority Holders. </FONT></P>

<p align=center>
<font size=2>- 13 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Proceeding</I>&#148;
means an action, claim, suit, investigation or proceeding (including, without limitation,
an investigation or partial Proceeding, such as a deposition), whether commenced or
threatened. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Prospectus</I>&#148;
means the prospectus included in the Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from a
prospectus filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act), 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 the Registration Statement, and all other amendments and supplements
to the Prospectus, including post-effective amendments, and all material incorporated by
reference or deemed to be incorporated by reference in such Prospectus. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Registrable
Securities</I>&#148; means the Ordinary Shares purchased pursuant to the Share Purchase
Agreement and any shares issued to the Investors in connection therewith prior to the date
the Registration Statement was declared effective by the Commission, including bonus
shares and shares granted pursuant to a share split. As to any particular Registrable
Securities, such Registrable Securities shall cease to be Registrable Securities when (i)
they have been registered under the Securities Act, the registration statement in
connection therewith has been declared effective and they have been disposed of pursuant
to such effective registration statement, (ii) they are eligible to be sold or distributed
without volume limitations pursuant to Rule 144, or (iii) they shall have ceased to be
outstanding. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Registration
Statement</I>&#148; means the registration statement, including the Prospectus, amendments
and supplements to such registration statement or Prospectus, including pre- and
post-effective amendments, all exhibits thereto, and all material incorporated by
reference or deemed to be incorporated by reference in such registration statement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Rule
144</I>&#148; means Rule 144 promulgated by the Commission pursuant to the Securities Act,
as such Rule may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such Rule. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Securities
Act</I>&#148; means the Securities Act of 1933, as amended, and any successor statute. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.&nbsp;&nbsp;&nbsp;&nbsp;
          Amendments or Supplements. All references in this Agreement to amendments or
          supplements to the Registration Statement, any preliminary Prospectus or
          Prospectus shall be deemed to mean and include the filing of any document under
          the Exchange Act, after the date of such Registration Statement, preliminary
          Prospectus or Prospectus, as the case may be, which is incorporated by reference
          therein. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11. &nbsp;&nbsp;&nbsp;&nbsp;<U>Incidental
Registration</U>. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Company at any time shall determine to prepare and file with the Commission a
Registration Statement relating to an offering of its equity securities, for its own
account or the account of others (except with respect to registration statements on Form
F-4, Form S-8 or another form not available for registering the Registrable Securities
for sale to the public), each such time it will give written notice to all Holders of
Registrable Securities of its intention so to do. The Company shall, upon the written
request of any such Holder, received by the Company within 10 days after the giving of
any such notice by the Company, to register any of its Registrable Securities, use its
best efforts to cause the Registrable Securities as to which registration shall have been
so requested to be included in the securities to be covered by the Registration Statement
proposed to be filed by the Company, all to the extent requisite to permit the sale or
other disposition by the Holders of such Registrable Securities. Notwithstanding the
above, Registrable Securities shall be included in such Registration Statement only to
the extent that their inclusion will not: (i) limit the number of securities sought to be
included by the Company for its own account or pursuant to the Company&#146;s agreements
with other shareholders; (ii) in the opinion of the Company, reduce the offering price or
trading price of the Company&#146;s Ordinary Shares; or (iii) cause the Registration
Statement to exceed any limit as may be mandated by the Commission or by applicable
regulation.  </FONT></P>

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<font size=2>- 14 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that any registration pursuant to this Section&nbsp;3, shall be, in whole or in
part, an underwritten public offering, and the managing underwriter advises the Company
that the inclusion of any or all of the Registrable Securities proposed to be included in
such registration could interfere with the successful marketing (including pricing) of
the offering, then the size of the offering shall be reduced accordingly with any
reduction applied first to the Registrable Securities proposed to be registered and
thereafter to securities of other shareholders proposed to be registered.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing provisions, the Company may withdraw any Registration Statement referred to
in this Section&nbsp;3 without thereby incurring any liability to the Holders of the
Registrable Securities.  </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Registration Procedures</U>. If and whenever the Company shall have filed a
          Registration Statement which includes Registrable Securities under the
          Securities Act, the Company shall: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prepare
and file with the Commission the Registration Statement with respect to such Registrable
Securities, respond as promptly as possible to any comments received from the Commission,
and use its reasonable commercial efforts to cause the Registration Statement to become
effective;  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prepare
and file with the Commission such amendments and supplements to the Registration
Statement and the Prospectus used in connection therewith as may be necessary to comply
with the provisions of the Securities Act with respect to the disposition of all
Registrable Securities covered by the Registration Statement and to keep such
Registration Statement effective;  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;furnish
to the Holder such number of copies of the Registration Statement and the Prospectus
included therein (including each preliminary Prospectus) as the Holder reasonably may
request to facilitate the public sale or disposition of the Registrable Securities
covered by the Registration Statement;  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;use
its best efforts to list the Registrable Securities covered by the Registration Statement
with any securities exchange on which the Ordinary Shares of the Company are then listed;  </FONT></P>

<p align=center>
<font size=2>- 15 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;immediately
notify the Holder at any time when a Prospectus relating to the Registrable Securities is
required to be delivered under the Securities Act, of the happening of any event, of
which the Company has knowledge, as a result of which the Prospectus contained in such
Registration Statement, as then in effect, includes an untrue statement of a material
fact or omits 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.  </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Registration Expenses</U>. All expenses relating to the Company&#146;s
          compliance with Section 3 hereof, including, without limitation, all
          registration and filing fees, printing expenses, fees and disbursements of
          counsel and independent public accountants for the Company, fees of the NASD,
          fees of transfer agents and registrars are called &#147;Registration
          Expenses&#148;. All selling commissions and discounts applicable to the sale of
          Registrable Securities, are called &#147;Selling Expenses.&#148; The Company
          shall only be responsible for all Registration Expenses and not for any Selling
          Expenses, which shall be the sole responsibility of the Holders. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14. &nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification</U>. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of a registration of any Registrable Securities under the Securities Act
pursuant to this Agreement, the Company will indemnify and hold harmless the Holder, and
its officers, directors and each other person, if any, who controls the Holder within the
meaning of the Securities Act, against any losses, claims, damages or liabilities, joint
or several, to which the Holder, or such persons may become subject under the Securities
Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in any Registration Statement under which such
Registrable Securities were registered under the Securities Act pursuant to this
Agreement, any preliminary Prospectus or final Prospectus contained therein, or any
amendment or supplement thereof, or arise out of or are based upon 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, and will reimburse the Holder,
and each such person for any reasonable legal or other expenses 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
(A) any untrue statement or alleged untrue statement or omission or alleged omission so
made in conformity with information furnished by or on behalf of the Holder or any such
person in writing specifically for use in any such document; (B) use of the Registration
Statement or the related Prospectus following a Discontinuation Event (as defined below),
provided Holder received prior notice of such Discontinuation Event; or (C) if the Holder
fails to deliver a Prospectus, as then amended or supplemented.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, the Company shall not be liable for any losses, claims, damages or
liabilities by reason of any compromise, consent to entry of judgment, or settlement
effected without the Company&#146;s prior written consent, which consent shall not be
unreasonably withheld or conditioned. </FONT></P>

<p align=center>
<font size=2>- 16 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of a registration of the Registrable Securities under the Securities Act
pursuant to this Agreement, the Holder will indemnify and hold harmless the Company, and
its officers, directors and each other person, if any, who controls the Company within
the meaning of the Securities Act, against all losses, claims, damages or liabilities,
joint or several, to which the Company or such persons may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact which was furnished in writing by the
Holder to the Company expressly for use in (and such information is contained in) the
Registration Statement under which such Registrable Securities were registered under the
Securities Act pursuant to this Agreement, any preliminary Prospectus or final Prospectus
contained therein, or any amendment or supplement thereof, or arise out of or are based
upon 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, and will
reimburse the Company and each such person for any reasonable legal or other expenses
incurred by them in connection with investigating or defending any such loss, claim,
damage, liability or action, provided, however, that the Holder will be liable in any
such case if and only to the extent that any such loss, claim, damage or liability arises
out of or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission so made in conformity with information furnished in writing to the
Company by or on behalf of the Holder specifically for use in any such document.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promptly
after receipt by a party entitled to claim indemnification hereunder (an <B>&#147;Indemnified
Party&#148;</B>) of notice of the commencement of any action, such Indemnified Party
shall, if a claim for indemnification in respect thereof is to be made against a party
hereto obligated to indemnify such Indemnified Party (an <B>&#147;Indemnifying Party&#148;</B>),
notify the Indemnifying Party in writing thereof, but the omission so to notify the
Indemnifying Party shall not relieve it from any liability which it may have to such
Indemnified Party hereunder, except for any liability which it may have to such
Indemnified Party if and to the extent the Indemnifying Party is substantially prejudiced
by such omission. In case any such action shall be brought against any Indemnified Party
and it shall notify the Indemnifying Party of the commencement thereof, the Indemnifying
Party shall be entitled to participate in and, to the extent it shall wish, to assume and
undertake the defense thereof with counsel reasonably satisfactory to the Indemnified
Party, and, after notice from the Indemnifying Party to such Indemnified Party of its
election so to assume and undertake the defense thereof, the Indemnifying Party shall not
be liable to such Indemnified Party for any legal expenses subsequently incurred by such
Indemnified Party in connection with the defense thereof; if the Indemnified Party
retains its own counsel, then the Indemnified Party shall pay all fees, costs and
expenses of such counsel, provided, however, that, if the defendants in any such action
include both the Indemnified Party and the Indemnifying Party and the Indemnified Party
shall have reasonably concluded that there may be reasonable defenses available to it
which are different from or additional to those available to the Indemnifying Party or if
the interests of the Indemnified Party reasonably may be deemed to conflict with the
interests of the Indemnifying Party, the Indemnified Party shall have the right to select
one separate counsel and to assume such legal defenses and otherwise to participate in
the defense of such action, with the reasonable expenses and fees of such separate
counsel and other expenses related to such participation to be reimbursed by the
Indemnifying Party as incurred.  </FONT></P>

<p align=center>
<font size=2>- 17 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to provide for just and equitable contribution in the event of joint liability
under the Securities Act in any case in which that an Indemnified Party or any officer,
director or controlling person thereof, makes a claim for indemnification pursuant to
this Section 6 but it is judicially determined (by the entry of a final judgment or
decree by a court of competent jurisdiction and the expiration of time to appeal or the
denial of the last right of appeal) that such indemnification may not be enforced,
notwithstanding the fact that this Section 6 provides for indemnification in such case,
then the Indemnifying Party will contribute to the aggregate losses, claims, damages or
liabilities to which it may be subject (after contribution from others) in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party and
the relative fault of the Indemnified Party as well as any other relevant equitable
considerations. Relative fault shall be determined by reference to, among other things,
whether any untrue statement or omission or alleged untrue statement of a material fact
or the omission to state a material fact relates to information provided by the
Indemnifying Party or the Indemnified Party, and the parties&#146; relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or
omission. Notwithstanding the foregoing, no person or entity guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) will be entitled to
contribution from any person or entity who was not guilty of such fraudulent
misrepresentation.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
provisions of this Section 6 will remain in full force and effect and survive the sale by
the Holder of the Registrable Securities covered by the Registration Statement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">15. &nbsp;&nbsp;&nbsp;&nbsp;<U>Miscellaneous</U>. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Remedies</U>.
In the event of a breach by the Company or by a Holder, of any of their respective
obligations under this Agreement, each Holder or the Company, as the case may be, in
addition to being entitled to exercise all rights granted by law and under this
Agreement, including recovery of damages, will be entitled to specific performance of its
rights under this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance</U>.
Each Holder covenants and agrees that it will comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with sales of
Registrable Securities pursuant to the Registration Statement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Discontinued
Disposition</U>. Each Holder agrees by its acquisition of such Registrable Securities
that, upon receipt of a notice from the Company of the occurrence of a Discontinuation
Event (as defined below), such Holder will forthwith discontinue disposition of such
Registrable Securities under the applicable Registration Statement until such Holder&#146;s
receipt of the copies of the supplemented Prospectus and/or amended Registration
Statement or until it is advised in writing by the Company that the use of the applicable
Prospectus may be resumed, and, in either case, has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by reference in
such Prospectus or Registration Statement. The Company may provide appropriate stop
orders to enforce the provisions of this paragraph. For purposes of this Section 7(c), a
&#147;Discontinuation Event&#148;shall mean (i) when the Commission notifies the Company
whether there will be a &#147;review&#148; of such Registration Statement and whenever
the Commission comments in writing on such Registration Statement; (ii) any request by
the Commission or any other Federal or state governmental authority for amendments or
supplements to such Registration Statement or Prospectus or for additional information;
(iii) the issuance by the Commission of any stop order suspending the effectiveness of
such Registration Statement covering any or all of the Registrable Securities or the
initiation of any Proceedings for that purpose; (iv) 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 or threatening of any Proceeding for such purpose; (v) the occurrence of any
event or passage of time that makes the financial statements included in such
Registration Statement ineligible for inclusion therein or any statement made in such
Registration Statement or Prospectus or any document incorporated or deemed to be
incorporated therein by reference untrue in any material respect or that requires any
revisions to such Registration Statement, Prospectus or other documents so that, in the
case of such Registration Statement or Prospectus, as the case may be, it will not
contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading;  </FONT></P>

<p align=center>
<font size=2>- 18 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments
and Waivers</U>. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be
given, unless the same shall be in writing and signed by the Company and the Majority
Holders. Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of certain Holders
and that does not directly or indirectly affect the rights of other Holders may be given
by Holders of at least a majority of the Registrable Securities to which such waiver or
consent relates; provided, however, that the provisions of this sentence may not be
amended, modified, or supplemented except in accordance with the provisions of the
immediately preceding sentence.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
Any notice or request hereunder may be given to the Company or the Investor at the
respective addresses set forth for such Investor in the Share Purchase Agreement and in
accordance with the notice provisions stipulated therein.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors
and Assigns.</U>This Agreement shall inure to the benefit of and be binding upon the
successors and permitted assigns of each of the parties hereto. The Company may not
assign its rights or obligations hereunder without the prior written consent of each
Holder. Each Holder may not assign its respective rights hereunder (or any part thereof)
without the prior written consent of the Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Execution
and Counterparts</U>. This Agreement may be executed in any number of counterparts, each
of which when so executed shall be deemed to be an original and, all of which taken
together shall constitute one and the same Agreement. In the event that any signature is
delivered by facsimile transmission, such signature shall create a valid binding
obligation of the party executing (or on whose behalf such signature is executed) the
same with the same force and effect as if such facsimile signature were the original
thereof.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law</U>. All questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of Israel, without regard to the
principles of conflicts of law thereof. Each party irrevocably agrees that all
Proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement shall be commenced exclusively in the competent court of
Tel Aviv-Jaffa district only.  </FONT></P>

<p align=center>
<font size=2>- 19 -</font></p>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
If any term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the
parties hereto shall use their reasonable efforts to find and employ an alternative means
to achieve the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>.
The headings in this Agreement are for convenience of reference only and shall not limit
or otherwise affect the meaning hereof.  </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[BALANCE OF PAGE
INTENTIONALLY LEFT BLANK; </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURE PAGE FOLLOWS] </FONT></H1>

<p align=center>
<font size=2>- 20 -</font></p>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the
date first written above. </FONT></P>

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<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.O.S. BETTER ONLINE SOLUTIONS LTD.<BR><BR>
<BR>By: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>Title:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MRS. SOPHIE DULAC<BR><BR><BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
</TR>
</TABLE>
<BR>




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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
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     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><I>Address for Notices:</I> </FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><I>Address for Notices:</I> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>20 Freiman Street</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>86 Avenue Niel</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Rishon Lezion 75101, Israel</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>75017 Paris, France</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Attention: &nbsp;&nbsp;&nbsp;Eyal Cohen , CFO</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Facsimile: &nbsp;&nbsp;&nbsp;(972) 3 954-1003</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Facsimile:</FONT></TD></TR>
</TABLE>
<BR>






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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MCKENZIE JORDAN AND CIE INC.<BR><BR>
<BR>By: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>Title:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>KENTVILLE COMPANY INC.<BR><BR>
<BR>By: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>Title:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
</TR>
</TABLE>
<BR>



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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
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     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><I>Address for Notices:</I> </FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><I>Address for Notices:</I> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>1000 de la Gaucheti&egrave;re West No 2900,</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>1000 de la Gaucheti&egrave;re West No 2900,</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Montr&eacute;al,
Qu&eacute;bec, Canada H3B 4W5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Montr&eacute;al,
Qu&eacute;bec, Canada H3B 4W5</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Attention:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Attention:</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Facsimile:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Facsimile:</FONT></TD></TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 21 -</font></p>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Schedule 1</U> </FONT> </H1>

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<TR VALIGN=Bottom>
     <TH COLSPAN=3 align=left><FONT FACE="Times New Roman" SIZE=1>INVESTOR'S NAME AND ADDRESS</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>PURCHASE<BR>
AMOUNT</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>NO. OF SHARES<BR>
PURCHASED</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>NO. OF<BR>
WARRANTS</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="57%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2"><B>Mrs. Sophie Dulac</B> </FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>86 Avenue Niel, 75017</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Paris, France</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>   335,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>248,148</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>124,074</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>McKenzie Jordan and Cie Inc.</B> </FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Registrar of Quebec,</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>number 1161443438</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>1000 de la Gaucheti&egrave;re</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>West No 2900,</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Montr&eacute;al,
Qu&eacute;bec</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Canada H3B 4W5</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   335,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>248,148</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>124,074</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE="2"><B>Kentville Company Inc.</B> </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Registrar of Quebec,</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>number no 1161426029</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>1000 de la Gaucheti&egrave;re</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>West No 2900,</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Montr&eacute;al,
Qu&eacute;bec</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Canada H3B 4W5</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>   330,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>244,444</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>122,222</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>Total</B> </FONT> </TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>&nbsp;</B> </FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>$</B> </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B> 1,000,000</B> </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>&nbsp;</B> </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>740,740</B> </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>&nbsp;</B> </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>370,370</B> </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>&nbsp;</B> </FONT></TD></TR>
</TABLE><BR>

<p align=center>
<font size=2>- 22 -</font></p>
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<DOCUMENT>
<TYPE>EX-4.6
<SEQUENCE>3
<FILENAME>exhibit_4-6.htm
<TEXT>
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     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        F:\EDGAR Filing\BOS better online solutions Ltd\85891\a85891.eep -->
     <!-- Control Number: 85891                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3/A                                                            -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3/A</TITLE>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Exhibit 4.6</U></B> </FONT> </P>


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THIS
WARRANT AND THE ORDINARY  SHARES  ISSUABLE  UPON  EXERCISE OF THIS WARRANT HAVE NOT
         BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR ANY STATE
 SECURITIES          LAWS.  THIS WARRANT AND THE ORDINARY  SHARES  ISSUABLE UPON EXERCISE
OF THIS WARRANT MAY          NOT BE SOLD,  OFFERED FOR SALE,  PLEDGED OR  HYPOTHECATED IN
THE ABSENCE OF AN EFFECTIVE          REGISTRATION  STATEMENT  AS TO THIS  WARRANT  UNDER
 SAID ACT AND ANY  APPLICABLE  STATE          SECURITIES  LAWS OR AN OPINION  OF  COUNSEL
 REASONABLY  SATISFACTORY  TO B.O.S.  BETTER          ONLINE SOLUTIONS LTD.  THAT SUCH
REGISTRATION IS NOT REQUIRED. </FONT></TD>
</TR>
</TABLE>
<BR>


<P align=center> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">Right to Purchase up to ______ Ordinary Shares of
<BR> <U>B.O.S. Better Online Solutions Ltd.
</U><BR> (subject to adjustment as provided herein) </FONT>
</P>


<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>
                                     ORDINARY SHARES PURCHASE WARRANT
</b></FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>No. _________________</FONT></TD>
     <TD WIDTH="50%" ALIGN="Right"><FONT FACE="Times New Roman" SIZE=2>Issue Date: July 16, 2008</FONT></TD></TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.O.S.
          BETTER ONLINE SOLUTIONS LTD. a company incorporated under the laws of the State
          of Israel hereby certifies that, for value received, _____________, or assigns
          (the &#147;Holder&#148;), is entitled, subject to the terms set forth below, to
          purchase from the Company (as defined herein) from and after the Issue Date of
          this Warrant and at any time or from time to time before 5:00 p.m., New York
          time, through the close of business July 16, 2010 (the &#147;Expiration
          Date&#148;), up to _________ fully paid and nonassessable Ordinary Shares (as
          hereinafter defined), NIS 4.00 nominal value per share, at the exercise price of
          $1.60 per Ordinary Share (the &#147;Exercise Price&#148;). The number and
          character of such Ordinary Shares and the Exercise Price per share are subject
          to adjustment as provided herein. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
used herein the following terms, unless the context otherwise requires, have the following
respective meanings: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               The term &#147;Company&#148; shall include B.O.S. Better Online Solutions Ltd.
               and any corporation which shall succeed, or assume the obligations of, B.O.S.
               Better Online Solutions Ltd. hereunder. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               The term &#147;Other Securities&#148; refers to any securities of the Company or
               any other person (corporate or otherwise) which the Holder of the Warrant at any
               time shall be entitled to receive, or shall have received, on the exercise of
               the Warrant, in lieu of or in addition to Ordinary Shares, or which at any time
               shall be issuable or shall have been issued in exchange for or in replacement of
               Ordinary Shares or Other Securities pursuant to Section 3 or otherwise. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized
terms used herein without definition shall have the meanings ascribed to such terms in
that Securities Purchase Agreement dated as of the date hereof by and among the Company
and the Investor (as defined therein). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exercise
of Warrant</U>.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Number of Shares Issuable upon Exercise</U>. From and after the date hereof through and
including the Expiration Date, the Holder shall be entitled to receive, upon exercise of
this Warrant in whole or in part, by delivery of an original or fax copy of an exercise
notice in the form attached hereto as <U>Exhibit A</U> (the &#147;Exercise Notice&#148;)
and payment in accordance with Section 2.2 below, Ordinary Shares of the Company (the
&#147;Warrant Shares&#148;), subject to adjustment pursuant to Section 4. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Large Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.2 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Company Acknowledgment</U>. The Company will, at the time of the partial exercise of
the Warrant, upon the request of the Holder hereof acknowledge in writing its continuing
obligation to afford to such Holder any rights to which such Holder shall continue to be
entitled after such partial exercise in accordance with the provisions of this Warrant. If
the Holder shall fail to make any such request, such failure shall not affect the
continuing obligation of the Company to afford to such Holder any such rights. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Procedure
for Exercise</U>.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Hang Lv 1-TNR" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Delivery of Share Certificates, Etc., on Exercise</U>. The Company agrees that the
Warrant Shares purchased upon exercise of this Warrant shall be deemed to be issued to the
Holder as the record owner of such shares as of the close of business on the date on which
this Warrant shall have been surrendered and payment made for such shares in accordance
herewith. As soon as practicable after the exercise of this Warrant in full or in part,
and in any event within three (3) business days thereafter, the Company at its expense
(including the payment by it of any applicable issue taxes) will cause to be issued in the
name of and delivered to the Holder, or as such Holder (upon payment by such Holder of any
applicable transfer taxes) may direct in compliance with applicable securities laws, a
certificate or certificates for the number of duly and validly issued, fully paid and
nonassessable Warrant Shares (or Other Securities) to which the Holder shall be entitled
on such exercise. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>



<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.2 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Exercise</U>. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Payment shall be made in cash, by wire transfer to a bank account the details of
                    which shall have been provided by the Company to the Holder in writing or by
                    certified or official bank check payable to the order of the Company, of the
                    amount equal to the applicable aggregate Exercise Price for the number of
                    Ordinary Shares specified in the Exercise Notice (as such exercise number shall
                    be adjusted to reflect any adjustment in the total number of Warrant Shares
                    issuable to the Holder per the terms of this Warrant) and the Holder shall
                    thereupon be entitled to receive the applicable number of duly authorized,
                    validly issued, fully-paid and non-assessable Warrant Shares (or Other
                    Securities) determined as provided herein. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para Large Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.3 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Fractional Shares</U>. This Warrant may not be exercised for fractional shares. In lieu
of fractional shares the Company shall make a cash payment therefor based upon the
Exercise Price then in effect. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effect
of Reorganization, Etc.; Adjustment of Exercise Price</U>.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Reorganization, Consolidation, Merger, Etc</U>. In case at any time or from time to
time, the Company shall (a) effect a reorganization, (b) consolidate with or merge into
any other person, including the sale of substantially all of the Company&#146;s
outstanding share capital to a corporate third party, in consideration for such third
party&#146;s securities, or (c) transfer all or substantially all of its properties or
assets to any other person under any plan or arrangement contemplating the dissolution of
the Company, then, in each such case, as a condition to the consummation of such a
transaction, proper and adequate provision shall be made by the Company whereby the Holder
of this Warrant, on the exercise hereof as provided in Sections 1 and 2 at any time after
the consummation of such reorganization, consolidation or merger or the effective date of
such dissolution, as the case may be, shall receive, in lieu of the Ordinary Shares
issuable on such exercise prior to such consummation or such effective date, the shares
and Other Securities and property (including cash) to which such Holder would have been
entitled upon such consummation or in connection with such dissolution, as the case may
be, if such Holder had so exercised this Warrant, immediately prior thereto, all subject
to further adjustment thereafter as provided in Section 4. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Large Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.2 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Extraordinary Events Regarding Ordinary Shares</U>. In the event that the Company shall
(a) issue additional Ordinary Shares as a dividend or other distribution on outstanding
Ordinary Shares, (b) subdivide its outstanding Ordinary Shares, or (c) combine its
outstanding Ordinary Shares into a smaller number of Ordinary Shares, then, in each such
event, the Exercise Price shall, simultaneously with the happening of such event, be
adjusted by multiplying the then Exercise Price by a fraction, the numerator of which
shall be the number of Ordinary Shares outstanding immediately prior to such event and the
denominator of which shall be the number of Ordinary Shares outstanding immediately after
such event, and the product so obtained shall thereafter be the Exercise Price then in
effect. The Exercise Price, as so adjusted, shall be readjusted in the same manner upon
the happening of any successive event or events described herein in this Section 3.2. The
number of Ordinary Shares that the Holder of this Warrant shall thereafter, on the
exercise hereof be entitled to receive shall be increased or decreased, as the case may
be, to a number determined by multiplying the number of Ordinary Shares that would
otherwise (but for the provisions of this Section 3.2) be issuable on such exercise by a
fraction of which (a) the numerator is the Exercise Price that would otherwise (but for
the provisions of this Section 3.2) be in effect, and (b) the denominator is the Exercise
Price in effect on the date of such exercise. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>3</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Large Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.3 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Good Faith</U>. All determinations with respect to adjustments by the Company hereunder
shall be made by the Board of Directors in good faith. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Certificate
as to Adjustments</U>. In each case of any adjustment or           readjustment in the
Ordinary Shares (or Other Securities) issuable on the           exercise of the Warrant,
the Company at its expense will promptly cause its           Chief Financial Officer or
other appropriate designee to compute such adjustment           or readjustment in
accordance with the terms of the Warrant and prepare a           certificate setting
forth such adjustment or readjustment and showing in detail           the facts upon
which such adjustment or readjustment is based.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reservation
of Shares, Etc., Issuable on Exercise of Warrant</U>. The Company           will at all
times reserve and keep available, solely for issuance and delivery           on the
exercise of the Warrant, Ordinary Shares (or Other Securities) from time           to
time issuable on the exercise of the Warrant.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
of the Company</U>. The Company represents that (i) all           corporate actions on
the part of the Company, its officers, directors and           shareholders necessary for
the sale and issuance of the Warrant Shares pursuant           hereto and the performance
of the Company&#146;s obligations hereunder were           taken prior to and are
effective as of the issue date of this Warrant; (ii) the           Warrant Shares are
duly authorized and reserved for issuance by the Company and,           when issued in
accordance with the terms hereof, will be validly issued, fully           paid and
nonassessable and not subject to any preemptive rights, and (iii) the           execution
and delivery of this Warrant are not, and the issuance of the Warrant           Shares
upon exercise of this Warrant in accordance with the terms hereof will           not be,
inconsistent with the Company&#146;s Articles of Association, do not and           will
not contravene any law, governmental rule or regulation, or, to the           Company&#146;s
knowledge, any judgment or order applicable to the Company, and,           except for
consents that have already been obtained by the Company or except as           would not
have a Material Adverse Effect, do not and will not conflict with or           contravene
any provision of, or constitute a default under, any indenture,           mortgage,
contract or other instrument of which the Company is a party or by           which it is
bound, or require the consent or approval of, the giving of notice           to, the
registration with or the taking of any action in respect of or by any
          government authority or agency or other person.. as used herein, &#147;Material
          Adverse Effect&#148; means any material adverse effect on the business,
          properties, assets, operations, prospects, results of operations or condition
          (financial or otherwise) of the Company and its subsidiaries, taken as a whole.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties by the Holder</U>. The Holder represents and           warrants to the
Company as follows:  </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Holder understands that the Warrant is being offered and sold pursuant to an exemption or
exemptions from registration requirements of Israeli and US Federal and state securities
laws and that the Company is relying upon the truth and accuracy of Holder&#146;s
representations contained in that Securities Purchase Agreement of even date herewith,
including, without limitation, that the Holder is an &#147;Accredited Investor&#148;
within the meaning of Regulation D under the Securities Act of 1933. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>4</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Large Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.2 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Holder has substantial experience in evaluating and investing in private placement
transactions of securities in companies similar to the Company so that it is capable of
evaluating the merits and risks of its investment in the Company and has the capacity to
protect its own interests. Holder is able to bear the economic risk of this investment. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.3 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Holder is acquiring the Warrant and the Ordinary Shares issuable upon exercise of the
Warrant for its own account for investment only, and not as a nominee or agent and not
with a view towards or for resale in connection with their distribution. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment;
Exchange of Warrant</U>. Subject to compliance with applicable           securities laws,
this Warrant, and the rights evidenced hereby, may be           transferred in whole by
any registered Holder hereof (a &#147;Transferor&#148;)           in whole or in part. On
the surrender for exchange of this Warrant, with the           Transferor&#146;s
endorsement in the form of <U>Exhibit B</U> attached hereto           (the &#147;Transferor
Endorsement Form&#148;) and together with evidence           reasonably satisfactory to
the Company demonstrating compliance with applicable           securities laws, which
shall include, without limitation, a legal opinion from           the Transferor&#146;s
counsel that such transfer is exempt from the registration           requirements of
applicable securities laws, the Company at its expense (but with           payment by the
Transferor of any applicable transfer taxes) will issue and           deliver a new
Warrant of like tenor, in the name of the transferee specified in           such
Transferor Endorsement Form (each a &#147;Transferee&#148;), calling in the
          aggregate on the face thereof for the number of Ordinary Shares called for on
          the face of the Warrant so surrendered by the Transferor. Notwithstanding the
          foregoing, no opinion of counsel or &#147;no-action&#148; letter shall be
          necessary for a transfer without consideration by a Holder to any other entity
          which controls, is controlled by or is under common control with the Holder.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Replacement
of Warrant</U>. On receipt of evidence reasonably satisfactory to           the Company
of the loss, theft, destruction or mutilation of this Warrant and,           in the case
of any such loss, theft or destruction of this Warrant, on delivery           of an
indemnity agreement or security reasonably satisfactory in form and amount           to
the Company or, in the case of any such mutilation, on surrender and
          cancellation of this Warrant, the Company at its expense will execute and
          deliver, in lieu thereof, a new Warrant of like tenor.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration
Rights</U>. The Holder of this Warrant has been granted certain           registration
rights by the Company. These registration rights are set forth in a
          Registration Rights Agreement entered into by the Company and the Holder dated
          as of even date of this Warrant.  </FONT></P>

<p align=center>
<font size=2>5</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Rights
of Shareholders</U>. No Holder shall be entitled, in its capacity as a           Warrant
holder only, to vote or receive dividends or be deemed the holder of the
          Ordinary Shares or any Other Securities of the Company, which may at any time
be           issuable upon the exercise of this Warrant for any purpose, nor shall
anything           contained herein be construed to confer upon the Holder, as such, any
of the           rights of a shareholder of the Company or any right to vote for the
election of           directors or upon any other matter submitted to shareholders at any
meeting           thereof, or to give or withhold consent to any corporate action
(whether upon           any recapitalization, issuance of shares, reclassification of
shares, change of           nominal value, consolidation, merger, conveyance, or
otherwise) or to receive           notice of meetings, or to receive dividends or
subscription rights or otherwise           until the Warrant shall have been exercised
and the Ordinary Shares issuable           upon the exercise hereof shall have become
deliverable, as provided herein.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Transfer
on the Company&#146;s Books</U>. Until this Warrant is transferred           on the books
of the Company, the Company may treat the registered holder hereof           as the
absolute owner hereof for all purposes, notwithstanding any notice to the
          contrary.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;13. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices,
Etc</U>. All notices and other communications from the Company to           the Holder of
this Warrant shall be deemed to have been sufficiently given and           received for
all purposes, (i) when delivered in writing by hand, upon delivery;           (ii) if
sent via facsimile, upon transmission and electronic confirmation of           receipt
(and if transmitted and received on a non-business day, on the first           business
day following transmission and electronic confirmation of receipt),           (iii) seven
(7) business days (and fourteen (14) business days for international           mail)
after being sent by certified or registered mail, postage and charges           prepaid,
return receipt requested, or (iv) three (3) business days after being           sent by
internationally overnight delivery providing receipt of delivery, to the
          address as may have been furnished to the Company in writing by such Holder or,
          until any such Holder furnishes to the Company an address, then to, and at the
          address of, the last Holder of this Warrant who has so furnished an address to
          the Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Miscellaneous</U>.
This Warrant and any term hereof may be changed, waived,           discharged or
terminated only by an instrument in writing signed by the party           against which
enforcement of such change, waiver, discharge or termination is           sought. This
Warrant shall be governed by and construed in accordance with the           laws of the
State of Israel without regard to principles of conflicts of laws.           Any dispute
arising under or in relation to this Agreement shall be adjudicated           in the
competent court of Tel Aviv-Jaffa district only, and each of the parties           hereby
submits irrevocably to the exclusive jurisdiction of such court. In the           event
that any provision of this Warrant is invalid or unenforceable under any
          applicable statute or rule of law, then such provision shall be deemed
          inoperative to the extent that it may conflict therewith and shall be deemed
          modified to conform with such statute or rule of law. Any such provision, which
          may prove invalid or unenforceable under any law shall not affect the validity
          or enforceability of any other provision of this Warrant. The headings in this
          Warrant are for purposes of reference only, and shall not limit or otherwise
          affect any of the terms hereof. The invalidity or unenforceability of any
          provision hereof shall in no way affect the validity or enforceability of any
          other provision.  </FONT></P>


    <P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>
                            [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
<BR>                                         SIGNATURE PAGE FOLLOWS]
</b></FONT></P>



<p align=center>
<font size=2>6</font></p>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, this Warrant is executed as of the date first written above. </FONT></P>


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<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>B.O.S. BETTER ONLINE SOLUTIONS LTD.</FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>[NAME OF HOLDER]</FONT></TD></TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>By:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>Title:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>7</font></p>
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<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT A </FONT></H1>


    <P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>
                                       FORM OF SUBSCRIPTION
</b><BR>                                (To Be Signed Only On Exercise Of Warrant)
</FONT></P>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To:  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.O.S.
Better Online Solutions Ltd.</FONT></TD>
</TR>
</TABLE>
<BR>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Attention: </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chief
Financial Officer</FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned, pursuant to the provisions set forth in the attached Warrant (No.____),
hereby irrevocably elects to purchase (check applicable box): </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;________
Ordinary Shares covered by such Warrant;  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <FONT size="3" face="Wingdings">o
</font> The undersigned herewith makes
payment of the full Exercise Price for such shares at the price per share provided for in
such Warrant, which is $___________. Such payment takes the form of (check applicable box
or boxes): </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="3" face="Wingdings">o
</font>
    $__________ by wire transfer of lawful money of the United States; and/or </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="3" face="Wingdings">o
</font>
    $__________ by certified or official bank check payable to the order of the Company </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 undersigned  requests  that the  certificate  for such  shares be issued in the name of,
and delivered       to       ______________________________________________       whose
      address       is ______________________________________________________________. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned represents and warrants that all offers and sales by the undersigned of the
securities issuable upon exercise of the within Warrant shall be made pursuant to
registration of the Ordinary Shares under the Securities Act of 1933, as amended (the
&#147;Securities Act&#148;) or pursuant to an exemption from registration under the
Securities Act. </FONT></P>


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     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Dated: _____________________</FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>___________________________________________________________</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>(Signature must conform to name of Holder as<BR> specified on the face of the Warrant)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Address: __________________________________________________</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;___________________________________________________</FONT></TD></TR>
</TABLE>
<BR>

<p align=center>
<font size=2>A - 1</font></p>
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<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT B </FONT></H1>


    <P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>
                                  FORM OF TRANSFEROR ENDORSEMENT
</b><BR>                                (To Be Signed Only on Transfer of Warrant)
</FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For value received, the undersigned
hereby sells, assigns, and transfers unto the person named below under the heading
&#147;Transferee&#148; the right represented by the within Warrant to purchase the number
of Ordinary Shares of B.O.S Better Online Solutions Ltd. into which the within Warrant
relates and appoints each such person attorney-at-fact to transfer its respective right on
the books of B.O.S. Better Online Solutions Ltd. with full power of substitution. </FONT></P>


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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B><U>NAME OF TRANSFEREE</U></B> </FONT> </TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B><U>ADDRESS</U></B> </FONT> </TD></TR>
</TABLE>
<BR>


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<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
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<TR VALIGN=Bottom>
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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>DATED: </B>_____________________ </FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>___________________________________________________________</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman" SIZE="2"><B>(SIGNATURE MUST CONFORM TO NAME<BR> OF HOLDER AS SPECIFIED ON
THE FACE<BR> OF THE WARRANT)</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>ADDRESS: </B>__________________________________________________ </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;___________________________________________________</FONT></TD></TR>
</TABLE>
<BR>





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<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B>ACCEPTED AND AGREED:</B> </FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B>[TRANSFEREE]</B> </FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>Title:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>




<p align=center>
<font size=2>B - 1</font></p>
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</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.7
<SEQUENCE>4
<FILENAME>exhibit_4-7.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        F:\EDGAR Filing\BOS better online solutions Ltd\85891\a85891.eep -->
     <!-- Control Number: 85891                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3/A                                                            -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3/A</TITLE>
</HEAD>
<BODY>


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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 4.7</B></U> </FONT> </P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SHARE PURCHASE
AGREEMENT </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This <B>SHARE PURCHASE AGREEMENT</B>
(this &#147;Agreement&#148;) is made and entered into as of August 25, 2008, by and among
B.O.S Better Online Solutions Ltd. (the &#147;Company&#148;), and Bellite Pty Limited,
whose address is 7 Beresford Road, Rose Bay 2029, NSW, Australia (the
&#147;Investor&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
subject to the terms and conditions herein, the Investor desires to acquire from the
Company, and the Company desires to issue to the Investor Ordinary Shares of the Company,
par value NIS 4.00 each (each, a &#147;Share&#148; and collectively, the
&#147;Shares&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and the Investor hereby agrees as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1. &nbsp;&nbsp;&nbsp;&nbsp;<B>PURCHASE
AND SALE OF SHARES.</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the satisfaction of the terms and conditions described in this Agreement, at the
Closing (as defined below), the Company agrees to sell to the Investor, and the Investor
agrees to purchase from the Company, 816,327 Shares, against the payment to the Company
of a total of $1,000,000 (he &#147;Purchase Amount&#148;), reflecting a price of $1.225
per Ordinary Share (the &#147;PPS&#148;).  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Closing, the Company shall issue and deliver to the Investor a Warrant in the form
attached hereto as <U>Exhibit A</U> (the &#147;<B>Warrant</B>&#148;) to purchase 408,164
Shares. The Warrant shall be exercisable for a period of 2 (two) years from the date of
issuance (the &#147;Warrant Issue Date&#148;). The Warrant&#146;s exercise price shall be
$1.475 per Share.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>CLOSING. </B>The execution and delivery of this Agreement shall occur upon
          delivery by facsimile of executed signature pages of this Agreement and all
          other documents, instruments and writings required to be delivered pursuant to
          this Agreement to Amit, Pollak, Matalon &amp; Co., NITSBA Tower, 17 Yitzhak
          Sadeh St., Tel-Aviv 67775 Israel attn: Shlomo Landress, Adv., Fax: (972) 3
          568-9001. The closing of the purchase and sale of the Shares will take place ten
          (10) days after the date hereof (or, if such date is not a business day, on the
          next business day thereafter), provided on such date the conditions for Closing
          set forth in Sections 5 and 6 herein shall have been satisfied in full or waived
          by the appropriate party thereunder, or at such different date as may be
          mutually acceptable to the Investor and the Company (the &#147;Closing&#148;).
          At the Closing, the Investor shall deliver to the Company payment in full
          (without deduction of any fees or taxes) for the Shares to be purchased, via
          wire transfer of immediately available funds or bank or cashier&#146;s check. At
          the Closing, the Company will deliver to the Investor a duly executed share
          certificate reflecting the number of shares purchased hereunder </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>REPRESENTATIONS AND WARRANTIES BY THE COMPANY. </B>The Company hereby
          represents and warrants to the Investor that: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Corporate
Organization</U>. The Company is a corporation duly incorporated and validly existing
under the laws of Israel, and has the corporate power to own its property and to carry on
its business as now being conducted. The Company&#146;s shares are traded on the Nasdaq
Global Market and on the Tel-Aviv Stock Exchange and as such it is subject to both U.S.
and Israeli Securities Laws.  </FONT></P>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Due
Authorization and Valid Issuance</U>. The Company has the corporate power to enter into
this Agreement and the Registration Rights Agreement (the &#147;Transaction Documents&#148;).
The Transaction Documents have been, or will have been, at the time of their respective
execution and delivery, duly executed and delivered by the Company. Prior to the Closing
of this Agreement, the Company shall have acted to complete all corporate action
necessary on its part for the issuance, sale and delivery of the Shares. The Shares being
purchased by the Investor hereunder will, upon issuance and payment therefore pursuant to
the terms hereof, be duly authorized, validly issued, fully-paid and nonassessable.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Binding
Agreement</U>. The Transaction Documents constitute valid and legally binding obligations
of the Company enforceable against the Company in accordance with their respective terms,
except as (i) such enforceability may be limited by bankruptcy, insolvency,
reorganization, arrangement, moratorium or similar laws relating to or affecting the
rights of creditors and contracting parties generally, (ii) the remedy of specific
performance and injunctive and other forms of equitable relief may be subject to
equitable defenses and to the discretion of the court before which any proceeding
therefore may be brought, and (iii) rights to indemnity and contribution may be limited
by Israeli or U.S. state or federal securities laws applicable to the Company or by the
public policy underlying such laws.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-Contravention</U>.
Neither the execution and delivery of the Transaction Documents, nor the consummation of
the transactions or the performance of the obligations contemplated hereby and thereby
will result in any violation or breach of Company&#146;s articles of association,
by-laws, board resolutions or shareholders resolutions.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Consent</U>. To the Company&#146;s best knowledge, and in reliance on the representations
of the Investor given in Section 4 hereof, except for reporting obligations and approvals
required under applicable security laws and market regulations in Israel and the United
States and for notices to or approvals by the Office of the Chief Scientist and the
Investment Center of the Ministry of Industry, Trade and Labor (if required), no consent
of any governmental body or third party is required to be made or obtained by the Company
in connection with the execution and delivery of the Transaction Documents by the Company
or the consummation by the Company of the transactions or the performance of the
obligations contemplated hereby and thereby by the Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Capitalization</U>.
The authorized share capital of the Company consists of 35,000,000 Ordinary Shares,
nominal value NIS 4.00 per share, of which, as of August 12, 2008, 12,211,187 Ordinary
Shares are issued and outstanding. The Company is currently in discussions with other
investors with respect to additional financings, in which financings the price per share
may be different than the PPS hereunder.  </FONT></P>

<p align=center>
<font size=2>- 2 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Financial
Statements</U>. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
audited consolidated financial statements of the Company as of December 31, 2007 and the
related notes thereto, as filed by the Company with the Securities and Exchange Commission
(&#147;SEC&#148;) under Form 20-F on June 30, 2008, fairly present the financial position
of the Company as of their respective dates, and have been prepared in accordance with the
books and records of the Company as at the applicable dates and for the applicable
periods. Such financial statements have been prepared in accordance with generally
accepted accounting principles applied on a consistent basis throughout the periods
therein specified, except as may be disclosed<B> </B>in the notes to such financial
statements, or as may be permitted by the Securities and Exchange Commission and except as
disclosed in the filings the Company made in connection with such statements, if any. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Legal
Proceedings</U>. Except as disclosed in the Company&#146;s public filings, there is no
material legal or governmental proceeding pending or, to the knowledge of the Company,
threatened to which the Company is or may be a party.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Intellectual
Property</U>. (i) The Company, either directly or through its subsidiaries, owns or
possesses sufficient rights to use all material patents, patent rights, trademarks,
copyrights, licenses, inventions, trade secrets, trade names and know-how (collectively,
&#147;Intellectual Property&#148;) described or referred to in the Company&#146;s public
filings as owned or possessed by it,<B></B>except where the failure to own or possess
would not have a material adverse effect on the Company, (ii) to the knowledge of the
Company, the Company is not infringing, nor has it received any notice of, any asserted
infringement of, any rights of a third party with respect to any Intellectual Property
that, individually or in the aggregate, would have a material adverse effect on the
Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Law</U>. To the knowledge of the Company, the business of the Company is conducted
in accordance with applicable laws, except to extent that, individually or in the
aggregate, would not have a material adverse effect on the Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.11 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Disclosure</U>.
The representations and warranties of the Company contained in this Section&nbsp;3 as of
the date hereof and as of the Closing, and in the Company&#146;s public filings with the
SEC, do not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements herein, in light of the circumstances under which
they are made, not misleading.  </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>REPRESENTATIONS OF THE INVESTOR.</B> The Investor represents to the Company
          that: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Enforceability</U>.
(i) The Investor is authorized and qualified and has full right and power to become an
investor in the Company, is authorized to purchase the Shares and to perform its
obligations pursuant to the provisions hereof, (ii) the person signing the Transaction
Documents and any other instrument executed and delivered therewith on behalf of the
Investor has been duly authorized by such entity and has full power and authority to do
so, and (iii) the Investor has not been formed for the specific purpose of acquiring an
interest in the Company.  </FONT></P>

<p align=center>
<font size=2>- 3 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Restrictions
on Transferability and Hedging.</U> </FONT> </P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.2.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Investor understands that (i) the Shares have not yet been registered under the
Securities Act of 1933, or under the laws of any other jurisdiction; (ii) such Shares
cannot be sold, transferred or otherwise disposed of unless they are subsequently
registered under the Securities Act and, where required, under the laws of other
jurisdictions or unless an exemption from registration is then available; (iii) there is
now no registration statement on file with the Securities and Exchange Commission with
respect to the Shares to be purchased by the Investor.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.2.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Investor acknowledges and agrees that the certificates representing the Shares shall bear
restrictive legends as counsel to the Company may determine are necessary or appropriate,
including without limitation, legends under applicable securities laws similar to the
following:  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;The
shares represented by this certificate have not been registered under the Securities Act
of 1933. The shares have been acquired for investment and may not be sold, transferred,
assigned 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 the Company&#146;s counsel that registration
under such Act is not required.&#148; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.2.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company will not register any transfer of Shares not made pursuant to registration under
the Securities Act, or pursuant to an available exemption from registration.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.2.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Investor agrees not to engage in hedging transactions with regard to the Shares sold
pursuant to this Agreement.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Offshore
Transaction</U>. The Investor is not a &#147;U.S. Person&#148;, as such term is defined
in Regulation S under the Securities Act of 1933 (&#147;Reg. S&#148;), its principal
address is outside the United States and it has no present intention of becoming a
resident of (or moving its principal place of business to) the United States. The
Investor was located outside the United States at the time any offer to sell and any
other action in connection with such offer and sale was made to the Investor and at the
time that the buy order was originated by the Investor. The Shares are being acquired
solely for the Investor&#146;s own account, and in no event and without derogating from
the foregoing, for the account or the benefit of a U.S. person. The Investor shall comply
with the applicable distribution compliance periods pursuant to Reg. S.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Investment
Purposes</U>. The Shares are being acquired for investment purposes. The Shares are not
being purchased with a view to, or for sale in connection with, any distribution or other
disposition thereof. The Investor has no present plans to enter into any contract,
undertaking, agreement or arrangement for any such resale, distribution or other
disposition and it will not divide its interest in the Company&#146;s Shares with others,
resell or otherwise distribute the Shares in violation of federal or state U.S.
Securities laws or the Israeli Securities Law.  </FONT></P>

<p align=center>
<font size=2>- 4 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Information
and Advice.</U> </FONT> </P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.5.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Investor has carefully reviewed and understands the risks of a purchase of the Shares. In
connection with the Investor&#146;s investment in the Company, it has obtained the advice
of its own investment advisors, counsel and accountants (the &#147;Advisors&#148;). The
Investor and its Advisors have reviewed the Company&#146;s public filings and have been
furnished with all materials relating to the Company or the offering of the Shares (the
&#147;Offering&#148;) that they have requested. The Investor and its Advisors have been
afforded the opportunity to ask questions of the Company concerning the financial and
other affairs of the Company and the conditions of the Offering and to obtain any
additional information necessary to verify the accuracy of any representations or
information set forth with respect to the Shares.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.5.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has answered all reasonable inquiries that the Investor and its Advisors have
made concerning the Company or any other matters relating to the creation and operations
of the Company and the terms and conditions of the Offering.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Sophistication
and Risk</U>. </FONT> </P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
has such knowledge and experience in financial and business matters, that it is capable
of evaluating, and has evaluated, the merits and risks of the Offering. By reason of its
business or financial experience, it has the capacity to protect its interests in
connection with an investment in the Company.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
understands that no Israeli or U.S. federal or state agency has passed upon the Shares or
made any finding or determination as to the fairness of the transactions contemplated in
the Transaction Documents.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
understands that the Shares are speculative investments, which involve a high degree of
risk, including the risk that the Investor might lose its entire amount invested in the
Company.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
understands that any tax benefits that may be available to the Investor may be lost
through adoption of new laws, amendments to existing laws or regulations, or changes in
the interpretation of existing laws and regulations.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
has the financial ability to bear the economic risk of its investment in the Company and
has adequate net worth and means of providing for the Investor&#146;s current needs and
contingencies to sustain a complete loss of the Investor&#146;s investment and has no
need for liquidity in the Investor&#146;s investment in the Company.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.6.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is an &#147;Accredited Investor&#148; as such term is defined in Rule 501 of Regulation D
under the Securities Act of 1933.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
solicitation</U>. At no time was the Investor 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 Offering.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Broker-Dealer</U>.
The Investor is not a broker-dealer, nor is it an affiliate of any
broker-dealer. </FONT> </P>

<p align=center>
<font size=2>- 5 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further
Indebtedness</U>. The Investor acknowledges that no provision of the Transaction
Documents executed and delivered by the Company restricts, or shall be construed to
restrict, in any way the ability of the Company to incur indebtedness or to issue share
capital or other equity securities (or securities convertible into equity securities) of
the Company or to grant liens on its property and assets.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Voting
and/or Investment Control over the Investor</U>. The Investor has made available to the
Company a list of individuals who have or share voting and/or investment control over
such Investor. The Investor shall update such list as reasonably requested by the Company
to comply with request for such information from any regulatory body.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.11 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Independent
Investment</U>. The Investor is acting independently with respect to its investment in
the Shares. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.12 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Holdings</U>.
<U>Schedule 1</U> attached hereto reflects the holdings of the Company's shares by the
Investor and its affiliates as of the date hereof, and as of the Closing. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.13 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Availability
of Exemptions</U>. The Investor understands that the Shares are being offered and sold in
reliance on a transactional exemption or exemptions from the registration requirements of
Israeli and U.S. Federal and state securities laws and the Company is relying upon the
truth and accuracy of the representations, warranties, agreements, acknowledgments and
understandings of the Investor set forth herein in order to determine the applicability
of such exemptions and the suitability of the Investor to acquire the Shares.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.14 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;Indemnification<B>.</B></U><B></B>The
Investor agrees to indemnify, defend and hold harmless the Company and its shareholders,
directors, executive officers and affiliates from and against all liability, damage,
losses, costs and expenses (including reasonable attorneys&#146; fees) which they may
incur by reason of the failure of the Investor to fulfill any of the terms and conditions
of this Agreement, or by reason of any breach of the representations and warranties made
by the Investor herein or in any document provided by the Investor to any executive
officers, directors, the Company or any of their affiliates.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.15 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Disclosure</U>.
The representations and warranties of the Investor contained in this Section&nbsp;4 as of
the date hereof and as of the Closing, do not contain any untrue statement of a material
fact or omit to state a material fact required to be stated herein or necessary to make
the statements herein, in light of the circumstances under which they are made, not
misleading. The Investor understands and confirms that the Company will rely on the
foregoing representations in effecting the transaction contemplated in the Transaction
Documents and other transactions in securities of the Company.  </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>CONDITIONS OF INVESTOR&#146;S OBLIGATION AT THE CLOSING. </B>The obligation
          of the Investor to purchase the Shares is subject to the fulfillment or waiver
          by the Investor prior to or on the date of the Closing of the conditions set
          forth in this Section 5. In the event that any such condition is not satisfied
          to the satisfaction of an Investor, then the Investor shall not be obligated to
          proceed with the purchase of such securities. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties</U>. The representations and warranties of the Company under this
Agreement shall be true in all material respects as of the Closing, with the same effect
as though made on and as of such date.  </FONT></P>

<p align=center>
<font size=2>- 6 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Agreements</U>. The Company shall have performed and complied in all material
respects with all agreements or conditions required by this Agreement to be performed and
complied with by it prior to or as of the Closing.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration
Rights Agreement</U>. As of the Closing, the Registration Rights Agreement in the form
attached hereto as <U>Exhibit B</U> (the &#147;Registration Rights Agreement&#148;) shall
have been executed and delivered by the Company and the Investor.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Injunction</U>. No statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or endorsed by any court or
governmental authority of competent jurisdiction which prohibits the consummation of any
of the transactions contemplated by this Agreement  </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>CONDITIONS OF THE COMPANY&#146;S OBLIGATION AT THE CLOSING. </B>The
          obligation of the Company to issue the Shares to the Investor at the Closing is
          subject to the fulfillment or waiver by the Company prior to or on the Closing
          of the conditions set forth in this Section 6. In the event that any such
          condition is not satisfied to the satisfaction of the Company, then the Company
          shall not be obligated to proceed with the sale of the securities under this
          Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties</U>. The representations and warranties of the Investor under this
Agreement shall be true in all material respects as of the Closing, with the same effect
as though made on and as of such date.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
with Agreements</U>. The Investor shall have performed and complied in all respects with
all agreements or conditions required by this Agreement to be performed and complied with
by it prior to or as of the Closing.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;6.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration
Rights Agreement</U>. As of the Closing, the Registration Rights Agreement shall have been
executed and delivered by the Investor. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Injunction</U>. No statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or endorsed by any court or
governmental authority of competent jurisdiction which prohibits the consummation of any
of the transactions contemplated by this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Delivery
of Purchase Amount</U>. The Investor shall have delivered to the Company its Purchase
Amount for the Shares at the Closing Date.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;6.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Government
Approvals</U>. The Company shall have received all necessary governmental approvals with
respect to the transactions contemplated hereby. The Investor shall have executed
any confirmations required by the Office of Chief Scientist, if applicable. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices
to Nasdaq and the TASE</U>. The Company shall have made all required filings of notices
with Nasdaq and the Tel Aviv Stock Exchange. The Company shall use its best efforts to
complete such filings.  </FONT></P>

<p align=center>
<font size=2>- 7 -</font></p>
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<page>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.&nbsp;&nbsp;&nbsp;&nbsp;
          <B>CONFIDENTIALITY. </B>Any information disclosed to the Investor or its
          Advisors, which has not previously been made available to the general public by
          the Company, if any, shall be considered Confidential Information. The Investor
          acknowledges the confidential nature of the Confidential Information it may have
          received, and agrees that the Confidential Information is the valuable property
          of the Company. The Investor agrees that it and its Advisors shall not reproduce
          any of the Confidential Information without the prior written consent of the
          Company, nor shall they use any Confidential Information for any purpose except
          as permitted by and in the performance of this Agreement, or divulge all or any
          part of the Confidential Information to any third party. The confidentiality
          obligations undertaken by the Investor hereunder will remain in full force and
          effect regardless of the execution and consummation or termination of this
          Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8. &nbsp;&nbsp;&nbsp;&nbsp;<B>MISCELLANEOUS</B>. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments.</U> This
Agreement may be modified, supplemented or amended only by a written instrument executed
by both parties.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
Any notice that is required or provided to be given under this Agreement shall be deemed
to have been sufficiently given and received for all purposes, (i) when delivered in
writing by hand, upon delivery; (ii) if sent via facsimile or email, upon transmission
and electronic confirmation of receipt (and if transmitted and received on a non-business
day, on the first business day following transmission and electronic confirmation of
receipt), (iii) seven (7) business days (and fourteen (14) business days for
international mail) after being sent by certified or registered mail, postage and charges
prepaid, return receipt requested, or (iv) three (3) business days after being sent by
internationally overnight delivery providing receipt of delivery, to the following
addresses:  </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
if
to the Company, B.O.S Better Online Solutions Ltd., 20 Freiman Street, Rishon Lezion,
75101 Israel Attn: Mr. Eyal Cohen, CFO, facsimile: (972) 3 954-1003, with a copy to Amit,
Pollak Matalon &amp; Co., NYP Tower, 17 Yitzhak Sadeh St., Tel-Aviv 67775 Israel attn:
Shlomo Landress, Adv. Fax: (972) 3 568-9001; or at any other address designated by the
Company to the Investor in writing;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
if
to the Investor, to its address listed in the preamble hereto or at any other address
designated by the Investor to the Company in writing.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survival
of Representations and Warranties</U>. All representations and warranties contained
herein or in any Transaction Document or in any other certificate delivered hereunder or
thereunder shall survive after the execution and delivery of this Agreement or such
certificate or document, as the case may be, for a period of 24 months from the date
hereof. All covenants and agreements in any Transaction Documents shall survive in
accordance with their terms. This Section shall survive the termination of this Agreement
for any reason.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Delays
or Omissions; Waiver</U>. Except as expressly provided herein, no delay or omission to
exercise any right, power or remedy accruing to any party under this Agreement shall
impair any such right, power or remedy of such party nor shall it be construed to be a
waiver of any breach or default, or an acquiescence thereto, or of a similar breach or
default thereafter occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter occurring. Any
waiver, permit, consent or approval of any kind or character on the part of any party
hereto of any breach or default under this Agreement, or any waiver on the part of any
party of any provisions or conditions of this Agreement, must be in writing and shall be
effective only to the extent specifically set forth in such writing.  </FONT></P>

<p align=center>
<font size=2>- 8 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Other
Remedies</U>. Any and all remedies herein expressly conferred upon a party shall be
deemed cumulative with, and not exclusive of, any other remedy conferred hereby or by law
on such party, and the exercise of any one remedy shall not preclude the exercise of any
other.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire
Agreement</U>. This Agreement and the exhibits and schedules hereto, constitute the
entire understanding and agreement of the parties hereto with respect to the subject
matter hereof and thereof and supersede all prior and contemporaneous agreements or
understandings, inducements or conditions, express or implied, written or oral, between
the parties with respect hereto and thereto.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings.</U> All
section headings herein are inserted for convenience only and shall not modify or affect
the construction or interpretation of any provision of this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
Should any one or more of the provisions of this Agreement (including its exhibits and
schedules) or of any agreement entered into pursuant to this Agreement be determined to
be illegal or unenforceable, all other provisions of this Agreement and of each other
agreement entered into pursuant to this Agreement, shall be given effect separately from
the provision or provisions determined to be illegal or unenforceable and shall not be
affected thereby. The parties further agree to replace such void or unenforceable
provision of this Agreement with a valid and enforceable provision, which will achieve,
to the extent possible, the economic, business and other purposes of the void or
unenforceable provision.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment</U>.
This Agreement may not be assigned in whole or in part by the Investor without the prior
written consent of the Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law and Venue</U>. This Agreement shall be construed in accordance with and governed by
the internal laws of the State of Israel, without regard to conflict of laws provisions.
Any dispute arising under or in relation to this Agreement shall be adjudicated in the
competent court of Tel Aviv-Jaffa district only, and each of the parties hereby submits
irrevocably to the exclusive jurisdiction of such court.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.11 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.
This Agreement may be executed concurrently in any number of counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Further Actions.</U> At any time
and from time to time, each party agrees, without further consideration, to take such
actions and to execute and deliver such documents as may be reasonably necessary to
effectuate the purposes of this Agreement. </FONT></P>

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<p align=center>
<font size=2>- 9 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>IN WITNESS WHEREOF</B>, the
undersigned have executed and delivered this Agreement as of the date first set forth
above. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.O.S. BETTER ONLINE SOLUTIONS LTD.
<BR>
<BR>By:____________________________
<BR>
<BR>Name: ______________________
<BR>
<BR>Title: _______________________
<BR>
<BR>
<BR>BELLITE PTY LIMITED
<BR>
<BR>By:____________________________
<BR>
<BR>Name: ______________________
<BR>
<BR>Title: _______________________
</FONT></P>

<p align=center>
<font size=2>- 10 -</font></p>
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<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Schedule 1</U> </FONT> </H1>








<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3 align=left rowspan=2><FONT FACE="Times New Roman" SIZE=1>INVESTOR'S NAME AND ADDRESS</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 rowspan=2><FONT FACE="Times New Roman" SIZE=1>PURCHASE<BR>AMOUNT</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 rowspan=2><FONT FACE="Times New Roman" SIZE=1>NO. OF SHARES<BR>PURCHASED</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 rowspan=2><FONT FACE="Times New Roman" SIZE=1>NO. OF<BR>WARRANTS</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=6><FONT FACE="Times New Roman" SIZE=1>PRE-CLOSING<BR>HOLDINGS</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=6><FONT FACE="Times New Roman" SIZE=1>POST-CLOSING<BR>HOLDINGS</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
</TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Amount</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Percent</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Amount</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Percent</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
</TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=29% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Bellite Pty Limited</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>7 Beresford Road</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Rose Bay 2029</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>NSW</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Australia</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2> 1,000,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>816,327</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>408,164</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 11 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REGISTRATION RIGHTS
AGREEMENT </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Registration Rights Agreement (this <B>&#147;Agreement&#148;</B>) is made and entered into
as of August 25, 2008, by and between B.O.S. Better Online Solutions Ltd., an Israeli
corporation (the &#147;<B>Company</B>&#148;), and Bellite Pty Limited, whose address is 7
Beresford Road, Rose Bay 2029, NSW, Australia (the &#147;<B>Investor</B>&#148;). The
Company and the Investor shall be referred to herein collectively as the
&#147;<B>Parties</B>&#148;. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement is made pursuant to the Share Purchase Agreement of even date hereof, by and
between the Investor and the Company (the <B>&#147;Share Purchase Agreement&#148;</B>). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company and the Investor hereby agree as follows: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Definitions</U>. Capitalized terms used and not otherwise defined herein that
          are defined in the Share Purchase Agreement shall have the meanings given to
          such terms in the Share Purchase Agreement. As used in this Agreement, the
          following terms shall have the following meanings: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Affiliate</I>&#148;
of any specified person means any other person, directly or indirectly, controlling or
controlled by or under common control with such specified person. For the purpose of this
definition &#147;control&#148; as used with respect to any person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the
management or policies of such person, whether through the ownership of voting securities
or by agreement or otherwise. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Commission</I>&#148;
means the Securities and Exchange Commission. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Ordinary
S</I>hares&#148; means the Company&#146;s Ordinary Shares, NIS 4.00 nominal value per
share. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Exchange
Act</I>&#148; means the Securities Exchange Act of 1934, as amended, and any successor
statute. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Holder</I>&#148;
or &#147;<I>Holders</I>&#148; means the Investor or any of its successors to the extent
any of them hold Registrable Securities, provided that only registered holders of
Registrable Securities shall be counted for purposes of calculating any proportion of
holders entitled to take any action, receive any damages or give any notice pursuant to
this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Indemnified
Party</I>&#148; shall have the meaning set forth in Section 6(c). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Indemnifying
Party</I>&#148; shall have the meaning set forth in Section 6(c). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Majority
Holders</I>&#148; shall means the Holders of a majority of the then outstanding aggregate
amount of Registrable Securities registered under an applicable Registration Statement,
provided that Registrable Securities which have been sold or otherwise transferred
pursuant to the Registration Statement or Rule 144 or are transferable without restriction
under Rule 144 shall not be included in the calculation of Majority Holders. </FONT></P>

<p align=center>
<font size=2>- 12 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Proceeding</I>&#148;
means an action, claim, suit, investigation or proceeding (including, without limitation,
an investigation or partial Proceeding, such as a deposition), whether commenced or
threatened. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Prospectus</I>&#148;
means the prospectus included in the Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from a
prospectus filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act), 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 the Registration Statement, and all other amendments and supplements
to the Prospectus, including post-effective amendments, and all material incorporated by
reference or deemed to be incorporated by reference in such Prospectus. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Registrable
Securities</I>&#148; means the Ordinary Shares purchased pursuant to the Share Purchase
Agreement and any shares issued to the Investor in connection therewith prior to the date
the Registration Statement was declared effective by the Commission, including bonus
shares and shares granted pursuant to a share split. As to any particular Registrable
Securities, such Registrable Securities shall cease to be Registrable Securities when (i)
they have been registered under the Securities Act, the registration statement in
connection therewith has been declared effective and they have been disposed of pursuant
to such effective registration statement, (ii) they are eligible to be sold or distributed
without volume limitations pursuant to Rule 144, or (iii) they shall have ceased to be
outstanding. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Registration
Statement</I>&#148; means the registration statement, including the Prospectus, amendments
and supplements to such registration statement or Prospectus, including pre- and
post-effective amendments, all exhibits thereto, and all material incorporated by
reference or deemed to be incorporated by reference in such registration statement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Rule
144</I>&#148; means Rule 144 promulgated by the Commission pursuant to the Securities Act,
as such Rule may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such Rule. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Securities
Act</I>&#148; means the Securities Act of 1933, as amended, and any successor statute. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Amendments or Supplements</U>. All references in this Agreement to amendments
          or supplements to the Registration Statement, any preliminary Prospectus or
          Prospectus shall be deemed to mean and include the filing of any document under
          the Exchange Act, after the date of such Registration Statement, preliminary
          Prospectus or Prospectus, as the case may be, which is incorporated by reference
          therein. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11. &nbsp;&nbsp;&nbsp;&nbsp;<U>Incidental
Registration</U>. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Company at any time shall determine to prepare and file with the Commission a
Registration Statement relating to an offering of its equity securities, for its own
account or the account of others (except with respect to registration statements on Form
F-4, Form S-8 or another form not available for registering the Registrable Securities
for sale to the public), each such time it will give written notice to all Holders of
Registrable Securities of its intention so to do. The Company shall, upon the written
request of any such Holder, received by the Company within 10 days after the giving of
any such notice by the Company, to register any of its Registrable Securities, use its
best efforts to cause the Registrable Securities as to which registration shall have been
so requested to be included in the securities to be covered by the Registration Statement
proposed to be filed by the Company, all to the extent requisite to permit the sale or
other disposition by the Holders of such Registrable Securities. Notwithstanding the
above, Registrable Securities shall be included in such Registration Statement only to
the extent that their inclusion will not: (i) limit the number of securities sought to be
included by the Company for its own account or pursuant to the Company&#146;s agreements
with other shareholders; (ii) in the opinion of the Company, reduce the offering price or
trading price of the Company&#146;s Ordinary Shares; or (iii) cause the Registration
Statement to exceed any limit as may be mandated by the Commission or by applicable
regulation.  </FONT></P>


<p align=center>
<font size=2>- 13 -</font></p>
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<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that any registration pursuant to this Section&nbsp;3, shall be, in whole or in
part, an underwritten public offering, and the managing underwriter advises the Company
that the inclusion of any or all of the Registrable Securities proposed to be included in
such registration could interfere with the successful marketing (including pricing) of
the offering, then the size of the offering shall be reduced accordingly with any
reduction applied first to the Registrable Securities proposed to be registered and
thereafter to securities of other shareholders proposed to be registered.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing provisions, the Company may withdraw any Registration Statement referred to
in this Section&nbsp;3 without thereby incurring any liability to the Holders of the
Registrable Securities.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Registration Procedures</U>. If and whenever the Company shall have filed a
          Registration Statement which includes Registrable Securities under the
          Securities Act, the Company shall: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prepare
and file with the Commission the Registration Statement with respect to such Registrable
Securities, respond as promptly as possible to any comments received from the Commission,
and use its reasonable commercial efforts to cause the Registration Statement to become
effective;  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prepare
and file with the Commission such amendments and supplements to the Registration
Statement and the Prospectus used in connection therewith as may be necessary to comply
with the provisions of the Securities Act with respect to the disposition of all
Registrable Securities covered by the Registration Statement and to keep such
Registration Statement effective;  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;furnish
to the Holder such number of copies of the Registration Statement and the Prospectus
included therein (including each preliminary Prospectus) as the Holder reasonably may
request to facilitate the public sale or disposition of the Registrable Securities
covered by the Registration Statement;  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;use
its best efforts to list the Registrable Securities covered by the Registration Statement
with any securities exchange on which the Ordinary Shares of the Company are then listed;  </FONT></P>

<p align=center>
<font size=2>- 14 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;immediately
notify the Holder at any time when a Prospectus relating to the Registrable Securities is
required to be delivered under the Securities Act, of the happening of any event, of
which the Company has knowledge, as a result of which the Prospectus contained in such
Registration Statement, as then in effect, includes an untrue statement of a material
fact or omits 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.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Registration Expenses</U>. All expenses relating to the Company&#146;s
          compliance with Section 3 hereof, including, without limitation, all
          registration and filing fees, printing expenses, fees and disbursements of
          counsel and independent public accountants for the Company, fees of the NASD,
          fees of transfer agents and registrars are called &#147;Registration
          Expenses&#148;. All selling commissions and discounts applicable to the sale of
          Registrable Securities, are called &#147;Selling Expenses.&#148; The Company
          shall only be responsible for all Registration Expenses and not for any Selling
          Expenses, which shall be the sole responsibility of the Holders. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14. &nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification</U>. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of a registration of any Registrable Securities under the Securities Act
pursuant to this Agreement, the Company will indemnify and hold harmless the Holder, and
its officers, directors and each other person, if any, who controls the Holder within the
meaning of the Securities Act, against any losses, claims, damages or liabilities, joint
or several, to which the Holder, or such persons may become subject under the Securities
Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in any Registration Statement under which such
Registrable Securities were registered under the Securities Act pursuant to this
Agreement, any preliminary Prospectus or final Prospectus contained therein, or any
amendment or supplement thereof, or arise out of or are based upon 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, and will reimburse the Holder,
and each such person for any reasonable legal or other expenses 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
(A) any untrue statement or alleged untrue statement or omission or alleged omission so
made in conformity with information furnished by or on behalf of the Holder or any such
person in writing specifically for use in any such document; (B) use of the Registration
Statement or the related Prospectus following a Discontinuation Event (as defined below),
provided Holder received prior notice of such Discontinuation Event; or (C) if the Holder
fails to deliver a Prospectus, as then amended or supplemented.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, the Company shall not be liable for any losses, claims, damages or
liabilities by reason of any compromise, consent to entry of judgment, or settlement
effected without the Company&#146;s prior written consent, which consent shall not be
unreasonably withheld or conditioned. </FONT></P>

<p align=center>
<font size=2>- 15 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of a registration of the Registrable Securities under the Securities Act
pursuant to this Agreement, the Holder will indemnify and hold harmless the Company, and
its officers, directors and each other person, if any, who controls the Company within
the meaning of the Securities Act, against all losses, claims, damages or liabilities,
joint or several, to which the Company or such persons may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact which was furnished in writing by the
Holder to the Company expressly for use in (and such information is contained in) the
Registration Statement under which such Registrable Securities were registered under the
Securities Act pursuant to this Agreement, any preliminary Prospectus or final Prospectus
contained therein, or any amendment or supplement thereof, or arise out of or are based
upon 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, and will
reimburse the Company and each such person for any reasonable legal or other expenses
incurred by them in connection with investigating or defending any such loss, claim,
damage, liability or action, provided, however, that the Holder will be liable in any
such case if and only to the extent that any such loss, claim, damage or liability arises
out of or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission so made in conformity with information furnished in writing to the
Company by or on behalf of the Holder specifically for use in any such document.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promptly
after receipt by a party entitled to claim indemnification hereunder (an <B>&#147;Indemnified
Party&#148;</B>) of notice of the commencement of any action, such Indemnified Party
shall, if a claim for indemnification in respect thereof is to be made against a party
hereto obligated to indemnify such Indemnified Party (an <B>&#147;Indemnifying Party&#148;</B>),
notify the Indemnifying Party in writing thereof, but the omission so to notify the
Indemnifying Party shall not relieve it from any liability which it may have to such
Indemnified Party hereunder, except for any liability which it may have to such
Indemnified Party if and to the extent the Indemnifying Party is substantially prejudiced
by such omission. In case any such action shall be brought against any Indemnified Party
and it shall notify the Indemnifying Party of the commencement thereof, the Indemnifying
Party shall be entitled to participate in and, to the extent it shall wish, to assume and
undertake the defense thereof with counsel reasonably satisfactory to the Indemnified
Party, and, after notice from the Indemnifying Party to such Indemnified Party of its
election so to assume and undertake the defense thereof, the Indemnifying Party shall not
be liable to such Indemnified Party for any legal expenses subsequently incurred by such
Indemnified Party in connection with the defense thereof; if the Indemnified Party
retains its own counsel, then the Indemnified Party shall pay all fees, costs and
expenses of such counsel, provided, however, that, if the defendants in any such action
include both the Indemnified Party and the Indemnifying Party and the Indemnified Party
shall have reasonably concluded that there may be reasonable defenses available to it
which are different from or additional to those available to the Indemnifying Party or if
the interests of the Indemnified Party reasonably may be deemed to conflict with the
interests of the Indemnifying Party, the Indemnified Party shall have the right to select
one separate counsel and to assume such legal defenses and otherwise to participate in
the defense of such action, with the reasonable expenses and fees of such separate
counsel and other expenses related to such participation to be reimbursed by the
Indemnifying Party as incurred.  </FONT></P>

<p align=center>
<font size=2>- 16 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to provide for just and equitable contribution in the event of joint liability
under the Securities Act in any case in which that an Indemnified Party or any officer,
director or controlling person thereof, makes a claim for indemnification pursuant to
this Section 6 but it is judicially determined (by the entry of a final judgment or
decree by a court of competent jurisdiction and the expiration of time to appeal or the
denial of the last right of appeal) that such indemnification may not be enforced,
notwithstanding the fact that this Section 6 provides for indemnification in such case,
then the Indemnifying Party will contribute to the aggregate losses, claims, damages or
liabilities to which it may be subject (after contribution from others) in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party and
the relative fault of the Indemnified Party as well as any other relevant equitable
considerations. Relative fault shall be determined by reference to, among other things,
whether any untrue statement or omission or alleged untrue statement of a material fact
or the omission to state a material fact relates to information provided by the
Indemnifying Party or the Indemnified Party, and the parties&#146; relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or
omission. Notwithstanding the foregoing, no person or entity guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) will be entitled to
contribution from any person or entity who was not guilty of such fraudulent
misrepresentation.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
provisions of this Section 6 will remain in full force and effect and survive the sale by
the Holder of the Registrable Securities covered by the Registration Statement.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">15. &nbsp;&nbsp;&nbsp;&nbsp;<U>Miscellaneous</U>. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Remedies</U>.
In the event of a breach by the Company or by a Holder, of any of their respective
obligations under this Agreement, each Holder or the Company, as the case may be, in
addition to being entitled to exercise all rights granted by law and under this
Agreement, including recovery of damages, will be entitled to specific performance of its
rights under this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance</U>.
Each Holder covenants and agrees that it will comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with sales of
Registrable Securities pursuant to the Registration Statement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Discontinued
Disposition</U>. Each Holder agrees by its acquisition of such Registrable Securities
that, upon receipt of a notice from the Company of the occurrence of a Discontinuation
Event (as defined below), such Holder will forthwith discontinue disposition of such
Registrable Securities under the applicable Registration Statement until such Holder&#146;s
receipt of the copies of the supplemented Prospectus and/or amended Registration
Statement or until it is advised in writing by the Company that the use of the applicable
Prospectus may be resumed, and, in either case, has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by reference in
such Prospectus or Registration Statement. The Company may provide appropriate stop
orders to enforce the provisions of this paragraph. For purposes of this Section 7(c), a
&#147;Discontinuation Event&#148;shall mean (i) when the Commission notifies the Company
whether there will be a &#147;review&#148; of such Registration Statement and whenever
the Commission comments in writing on such Registration Statement; (ii) any request by
the Commission or any other Federal or state governmental authority for amendments or
supplements to such Registration Statement or Prospectus or for additional information;
(iii) the issuance by the Commission of any stop order suspending the effectiveness of
such Registration Statement covering any or all of the Registrable Securities or the
initiation of any Proceedings for that purpose; (iv) 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 or threatening of any Proceeding for such purpose; (v) the occurrence of any
event or passage of time that makes the financial statements included in such
Registration Statement ineligible for inclusion therein or any statement made in such
Registration Statement or Prospectus or any document incorporated or deemed to be
incorporated therein by reference untrue in any material respect or that requires any
revisions to such Registration Statement, Prospectus or other documents so that, in the
case of such Registration Statement or Prospectus, as the case may be, it will not
contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading;  </FONT></P>

<p align=center>
<font size=2>- 17 -</font></p>
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<page>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments
and Waivers</U>. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be
given, unless the same shall be in writing and signed by the Company and the Majority
Holders. Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of certain Holders
and that does not directly or indirectly affect the rights of other Holders may be given
by Holders of at least a majority of the Registrable Securities to which such waiver or
consent relates; provided, however, that the provisions of this sentence may not be
amended, modified, or supplemented except in accordance with the provisions of the
immediately preceding sentence.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
Any notice or request hereunder may be given to the Company or the Investor at the
respective addresses set forth in the Share Purchase Agreement and in accordance with the
notice provisions stipulated therein.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors
and Assigns.</U>This Agreement shall inure to the benefit of and be binding upon the
successors and permitted assigns of each of the Parties hereto. The Company may not
assign its rights or obligations hereunder without the prior written consent of each
Holder. Each Holder may not assign its respective rights hereunder (or any part thereof)
without the prior written consent of the Company.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Execution
and Counterparts</U>. This Agreement may be executed in any number of counterparts, each
of which when so executed shall be deemed to be an original and, all of which taken
together shall constitute one and the same Agreement. In the event that any signature is
delivered by facsimile transmission, such signature shall create a valid binding
obligation of the party executing (or on whose behalf such signature is executed) the
same with the same force and effect as if such facsimile signature were the original
thereof.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law</U>. All questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of Israel, without regard to the
principles of conflicts of law thereof. Each party irrevocably agrees that all
Proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement shall be commenced exclusively in the competent court of
Tel Aviv-Jaffa district only.  </FONT></P>

<p align=center>
<font size=2>- 18 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
If any term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the
parties hereto shall use their reasonable efforts to find and employ an alternative means
to achieve the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>.
The headings in this Agreement are for convenience of reference only and shall not limit
or otherwise affect the meaning hereof.  </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[BALANCE OF PAGE
INTENTIONALLY LEFT BLANK; </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURE PAGE FOLLOWS] </FONT></H1>

<p align=center>
<font size=2>- 19 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the
date first written above. </FONT></P>

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<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.O.S. BETTER ONLINE SOLUTIONS LTD.<BR><BR>
<BR>By: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>Title:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BELLITE PTY LIMITED<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>By: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
<BR>Title:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
</TR>
</TABLE>
<BR>




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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><I>Address for Notices:</I> </FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><I>Address for Notices:</I> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>20 Freiman Street</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>7 Beresford Road</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Attention: &nbsp;&nbsp;&nbsp;Eyal Cohen , CFO</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Attention:</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Facsimile: &nbsp;&nbsp;&nbsp;(972) 3 954-1003</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Facsimile:</FONT></TD></TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 20 -</font></p>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Schedule 1</U> </FONT> </H1>





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<TR VALIGN=Bottom>
     <TH COLSPAN=3 align=left><FONT FACE="Times New Roman" SIZE=1>INVESTOR'S NAME AND ADDRESS</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>PURCHASE AMOUNT</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>NO. OF SHARES<BR>
PURCHASED</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>NO. OF<BR>
WARRANTS</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=56% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Bellite Pty Limited</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>7 Beresford Road</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Rose Bay 2029</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>NSW</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Australia</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2> 1,000,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>816,327</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>408,164</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
<BR>

<p align=center>
<font size=2>- 21 -</font></p>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.8
<SEQUENCE>5
<FILENAME>exhibit_4-8.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        F:\EDGAR Filing\BOS better online solutions Ltd\85891\a85891.eep -->
     <!-- Control Number: 85891                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3/A                                                            -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3/A</TITLE>
</HEAD>
<BODY>


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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Exhibit 4.8</U></B> </FONT> </P>


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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
THIS
WARRANT AND THE ORDINARY  SHARES  ISSUABLE  UPON  EXERCISE OF THIS WARRANT HAVE NOT
         BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR ANY STATE
 SECURITIES          LAWS.  THIS WARRANT AND THE ORDINARY  SHARES  ISSUABLE UPON EXERCISE
OF THIS WARRANT MAY          NOT BE SOLD,  OFFERED FOR SALE,  PLEDGED OR  HYPOTHECATED IN
THE ABSENCE OF AN EFFECTIVE          REGISTRATION  STATEMENT  AS TO THIS  WARRANT  UNDER
 SAID ACT AND ANY  APPLICABLE  STATE          SECURITIES  LAWS OR AN OPINION  OF  COUNSEL
 REASONABLY  SATISFACTORY  TO B.O.S.  BETTER          ONLINE SOLUTIONS LTD.  THAT SUCH
REGISTRATION IS NOT REQUIRED. </FONT></TD>
</TR>
</TABLE>
<BR>


<P align=center> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">Right to Purchase up to 408,164 Ordinary Shares of
<BR> <U>B.O.S. Better Online Solutions Ltd.
</U><BR> (subject to adjustment as provided herein) </FONT>
</P>


<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>
                                     ORDINARY SHARES PURCHASE WARRANT
</b></FONT></P>



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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
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<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>No. _________________</FONT></TD>
     <TD WIDTH="50%" ALIGN="Right"><FONT FACE="Times New Roman" SIZE=2>Issue Date: August 25, 2008</FONT></TD></TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.O.S.
          BETTER ONLINE SOLUTIONS LTD. a company incorporated under the laws of the State
          of Israel hereby certifies that, for value received, Bellite Pty Limited, or
          assigns (the &#147;Holder&#148;), is entitled, subject to the terms set forth
          below, to purchase from the Company (as defined herein) from and after the Issue
          Date of this Warrant and at any time or from time to time before 5:00 p.m., New
          York time, through the close of business August 25, 2010 (the &#147;Expiration
          Date&#148;), up to 408,164 fully paid and nonassessable Ordinary Shares (as
          hereinafter defined), NIS 4.00 nominal value per share, at the exercise price of
          $1.475 per Ordinary Share (the &#147;Exercise Price&#148;). The number and
          character of such Ordinary Shares and the Exercise Price per share are subject
          to adjustment as provided herein. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
used herein the following terms, unless the context otherwise requires, have the following
respective meanings: </FONT></P>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               The term &#147;Company&#148; shall include B.O.S. Better Online Solutions Ltd.
               and any corporation which shall succeed, or assume the obligations of B.O.S.
               Better Online Solutions Ltd. hereunder. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               The term &#147;Other Securities&#148; refers to any securities of the Company or
               any other person (corporate or otherwise) which the Holder of the Warrant at any
               time shall be entitled to receive, or shall have received, on the exercise of
               the Warrant, in lieu of or in addition to Ordinary Shares, or which at any time
               shall be issuable or shall have been issued in exchange for or in replacement of
               Ordinary Shares or Other Securities pursuant to Section 3 or otherwise. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized
terms used herein without definition shall have the meanings ascribed to such terms in
that Securities Purchase Agreement dated as of the date hereof by and among the Company
and the Investor (as defined therein). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exercise
of Warrant</U>.  </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Number of Shares Issuable upon Exercise</U>. From and after the date hereof through and
including the Expiration Date, the Holder shall be entitled to receive, upon exercise of
this Warrant in whole or in part, by delivery of an original or fax copy of an exercise
notice in the form attached hereto as <U>Exhibit A</U> (the &#147;Exercise Notice&#148;)
and payment in accordance with Section 2.2 below, Ordinary Shares of the Company (the
&#147;Warrant Shares&#148;), subject to adjustment pursuant to Section 4. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.2 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Company Acknowledgment</U>. The Company will, at the time of the partial exercise of
the Warrant, upon the request of the Holder hereof acknowledge in writing its continuing
obligation to afford to such Holder any rights to which such Holder shall continue to be
entitled after such partial exercise in accordance with the provisions of this Warrant. If
the Holder shall fail to make any such request, such failure shall not affect the
continuing obligation of the Company to afford to such Holder any such rights. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Procedure
for Exercise</U>.  </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Delivery of Share Certificates, Etc., on Exercise</U>. The Company agrees that the
Warrant Shares purchased upon exercise of this Warrant shall be deemed to be issued to the
Holder as the record owner of such shares as of the close of business on the date on which
this Warrant shall have been surrendered and payment made for such shares in accordance
herewith. As soon as practicable after the exercise of this Warrant in full or in part,
and in any event within three (3) business days thereafter, the Company at its expense
(including the payment by it of any applicable issue taxes) will cause to be issued in the
name of and delivered to the Holder, or as such Holder (upon payment by such Holder of any
applicable transfer taxes) may direct in compliance with applicable securities laws, a
certificate or certificates for the number of duly and validly issued, fully paid and
nonassessable Warrant Shares (or Other Securities) to which the Holder shall be entitled
on such exercise. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.2 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Exercise</U>. </FONT></TD>
</TR>
</TABLE>
<BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Payment shall be made in cash, by wire transfer to a bank account the details of
                    which shall have been provided by the Company to the Holder in writing or by
                    certified or official bank check payable to the order of the Company, of the
                    amount equal to the applicable aggregate Exercise Price for the number of
                    Ordinary Shares specified in the Exercise Notice (as such exercise number shall
                    be adjusted to reflect any adjustment in the total number of Warrant Shares
                    issuable to the Holder per the terms of this Warrant) and the Holder shall
                    thereupon be entitled to receive the applicable number of duly authorized,
                    validly issued, fully-paid and non-assessable Warrant Shares (or Other
                    Securities) determined as provided herein. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.3 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Fractional Shares</U>. This Warrant may not be exercised for fractional shares. In lieu
of fractional shares the Company shall make a cash payment therefor based upon the
Exercise Price then in effect. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effect
of Reorganization, Etc.; Adjustment of Exercise Price</U>.  </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Reorganization, Consolidation, Merger, Etc</U>. In case at any time or from time to
time, the Company shall (a) effect a reorganization, (b) consolidate with or merge into
any other person, including the sale of substantially all of the Company&#146;s
outstanding share capital to a corporate third party, in consideration for such third
party&#146;s securities, or (c) transfer all or substantially all of its properties or
assets to any other person under any plan or arrangement contemplating the dissolution of
the Company, then, in each such case, as a condition to the consummation of such a
transaction, proper and adequate provision shall be made by the Company whereby the Holder
of this Warrant, on the exercise hereof as provided in Sections 1 and 2 at any time after
the consummation of such reorganization, consolidation or merger or the effective date of
such dissolution, as the case may be, shall receive, in lieu of the Ordinary Shares
issuable on such exercise prior to such consummation or such effective date, the shares
and Other Securities and property (including cash) to which such Holder would have been
entitled upon such consummation or in connection with such dissolution, as the case may
be, if such Holder had so exercised this Warrant, immediately prior thereto, all subject
to further adjustment thereafter as provided in Section 4. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.2 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Extraordinary Events Regarding Ordinary Shares</U>. In the event that the Company shall
(a) issue additional Ordinary Shares as a dividend or other distribution on outstanding
Ordinary Shares, (b) subdivide its outstanding Ordinary Shares, or (c) combine its
outstanding Ordinary Shares into a smaller number of Ordinary Shares, then, in each such
event, the Exercise Price shall, simultaneously with the happening of such event, be
adjusted by multiplying the then Exercise Price by a fraction, the numerator of which
shall be the number of Ordinary Shares outstanding immediately prior to such event and the
denominator of which shall be the number of Ordinary Shares outstanding immediately after
such event, and the product so obtained shall thereafter be the Exercise Price then in
effect. The Exercise Price, as so adjusted, shall be readjusted in the same manner upon
the happening of any successive event or events described herein in this Section 3.2. The
number of Ordinary Shares that the Holder of this Warrant shall thereafter, on the
exercise hereof be entitled to receive shall be increased or decreased, as the case may
be, to a number determined by multiplying the number of Ordinary Shares that would
otherwise (but for the provisions of this Section 3.2) be issuable on such exercise by a
fraction of which (a) the numerator is the Exercise Price that would otherwise (but for
the provisions of this Section 3.2) be in effect, and (b) the denominator is the Exercise
Price in effect on the date of such exercise. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>3</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Large Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.3 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Good Faith</U>. All determinations with respect to adjustments by the Company hereunder
shall be made by the Board of Directors in good faith. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Certificate
as to Adjustments</U>. In each case of any adjustment or           readjustment in the
Ordinary Shares (or Other Securities) issuable on the           exercise of the Warrant,
the Company at its expense will promptly cause its           Chief Financial Officer or
other appropriate designee to compute such adjustment           or readjustment in
accordance with the terms of the Warrant and prepare a           certificate setting
forth such adjustment or readjustment and showing in detail           the facts upon
which such adjustment or readjustment is based.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reservation
of Shares, Etc., Issuable on Exercise of Warrant</U>. The Company           will at all
times reserve and keep available, solely for issuance and delivery           on the
exercise of the Warrant, Ordinary Shares (or Other Securities) from time           to
time issuable on the exercise of the Warrant.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
of the Company</U>. The Company represents that (i) all           corporate actions on
the part of the Company, its officers, directors and           shareholders necessary for
the sale and issuance of the Warrant Shares pursuant           hereto and the performance
of the Company&#146;s obligations hereunder were           taken prior to and are
effective as of the issue date of this Warrant; (ii) the           Warrant Shares are
duly authorized and reserved for issuance by the Company and,           when issued in
accordance with the terms hereof, will be validly issued, fully           paid and
nonassessable and not subject to any preemptive rights, and (iii) the           execution
and delivery of this Warrant are not, and the issuance of the Warrant           Shares
upon exercise of this Warrant in accordance with the terms hereof will           not be,
inconsistent with the Company&#146;s Articles of Association, do not and           will
not contravene any law, governmental rule or regulation, or, to the           Company&#146;s
knowledge, any judgment or order applicable to the Company, and,           except for
consents that have already been obtained by the Company or except as           would not
have a Material Adverse Effect, do not and will not conflict with or           contravene
any provision of, or constitute a default under, any indenture,           mortgage,
contract or other instrument of which the Company is a party or by           which it is
bound, or require the consent or approval of, the giving of notice           to, the
registration with or the taking of any action in respect of or by any
          government authority or agency or other person.. as used herein, &#147;Material
          Adverse Effect&#148; means any material adverse effect on the business,
          properties, assets, operations, prospects, results of operations or condition
          (financial or otherwise) of the Company and its subsidiaries, taken as a whole.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties by the Holder</U>. The Holder represents and           warrants to the
Company as follows:  </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.1 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Holder understands that the Warrant is being offered and sold pursuant to an exemption or
exemptions from registration requirements of Israeli and US Federal and state securities
laws and that the Company is relying upon the truth and accuracy of Holder&#146;s
representations contained in that Securities Purchase Agreement of even date herewith,
including, without limitation, that the Holder is an &#147;Accredited Investor&#148;
within the meaning of Regulation D under the Securities Act of 1933. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>4</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.2 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Holder has substantial experience in evaluating and investing in private placement
transactions of securities in companies similar to the Company so that it is capable of
evaluating the merits and risks of its investment in the Company and has the capacity to
protect its own interests. Holder is able to bear the economic risk of this investment. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.3 </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Holder is acquiring the Warrant and the Ordinary Shares issuable upon exercise of the
Warrant for its own account for investment only, and not as a nominee or agent and not
with a view towards or for resale in connection with their distribution. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment;
Exchange of Warrant</U>. Subject to compliance with applicable           securities laws,
this Warrant, and the rights evidenced hereby, may be           transferred in whole by
any registered Holder hereof (a &#147;Transferor&#148;)           in whole or in part. On
the surrender for exchange of this Warrant, with the           Transferor&#146;s
endorsement in the form of <U>Exhibit B</U> attached hereto           (the &#147;Transferor
Endorsement Form&#148;) and together with evidence           reasonably satisfactory to
the Company demonstrating compliance with applicable           securities laws, which
shall include, without limitation, a legal opinion from           the Transferor&#146;s
counsel that such transfer is exempt from the registration           requirements of
applicable securities laws, the Company at its expense (but with           payment by the
Transferor of any applicable transfer taxes) will issue and           deliver a new
Warrant of like tenor, in the name of the transferee specified in           such
Transferor Endorsement Form (each a &#147;Transferee&#148;), calling in the
          aggregate on the face thereof for the number of Ordinary Shares called for on
          the face of the Warrant so surrendered by the Transferor. Notwithstanding the
          foregoing, no opinion of counsel or &#147;no-action&#148; letter shall be
          necessary for a transfer without consideration by a Holder to any other entity
          which controls, is controlled by or is under common control with the Holder.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Replacement
of Warrant</U>. On receipt of evidence reasonably satisfactory to           the Company
of the loss, theft, destruction or mutilation of this Warrant and,           in the case
of any such loss, theft or destruction of this Warrant, on delivery           of an
indemnity agreement or security reasonably satisfactory in form and amount           to
the Company or, in the case of any such mutilation, on surrender and
          cancellation of this Warrant, the Company at its expense will execute and
          deliver, in lieu thereof, a new Warrant of like tenor.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration
Rights</U>. The Holder of this Warrant has been granted certain           registration
rights by the Company. These registration rights are set forth in a
          Registration Rights Agreement entered into by the Company and the Holder dated
          as of even date of this Warrant.  </FONT></P>

<p align=center>
<font size=2>5</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Rights
of Shareholders</U>. No Holder shall be entitled, in its capacity as a           Warrant
holder only, to vote or receive dividends or be deemed the holder of the
          Ordinary Shares or any Other Securities of the Company, which may at any time
be           issuable upon the exercise of this Warrant for any purpose, nor shall
anything           contained herein be construed to confer upon the Holder, as such, any
of the           rights of a shareholder of the Company or any right to vote for the
election of           directors or upon any other matter submitted to shareholders at any
meeting           thereof, or to give or withhold consent to any corporate action
(whether upon           any recapitalization, issuance of shares, reclassification of
shares, change of           nominal value, consolidation, merger, conveyance, or
otherwise) or to receive           notice of meetings, or to receive dividends or
subscription rights or otherwise           until the Warrant shall have been exercised
and the Ordinary Shares issuable           upon the exercise hereof shall have become
deliverable, as provided herein.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Transfer
on the Company&#146;s Books</U>. Until this Warrant is transferred           on the books
of the Company, the Company may treat the registered holder hereof           as the
absolute owner hereof for all purposes, notwithstanding any notice to the
          contrary.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;13. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices,
Etc</U>. All notices and other communications from the Company to           the Holder of
this Warrant shall be deemed to have been sufficiently given and           received for
all purposes, (i) when delivered in writing by hand, upon delivery;           (ii) if
sent via facsimile or email, upon transmission and electronic confirmation of           receipt
(and if transmitted and received on a non-business day, on the first           business
day following transmission and electronic confirmation of receipt),           (iii) seven
(7) business days (and fourteen (14) business days for international           mail)
after being sent by certified or registered mail, postage and charges           prepaid,
return receipt requested, or (iv) three (3) business days after being           sent by
internationally overnight delivery providing receipt of delivery, to the
          address as may have been furnished to the Company in writing by such Holder or,
          until any such Holder furnishes to the Company an address, then to, and at the
          address of, the last Holder of this Warrant who has so furnished an address to
          the Company.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Miscellaneous</U>.
This Warrant and any term hereof may be changed, waived,           discharged or
terminated only by an instrument in writing signed by the party           against which
enforcement of such change, waiver, discharge or termination is           sought. This
Warrant shall be governed by and construed in accordance with the           laws of the
State of Israel without regard to principles of conflicts of laws.           Any dispute
arising under or in relation to this Agreement shall be adjudicated           in the
competent court of Tel Aviv-Jaffa district only, and each of the parties           hereby
submits irrevocably to the exclusive jurisdiction of such court. In the           event
that any provision of this Warrant is invalid or unenforceable under any
          applicable statute or rule of law, then such provision shall be deemed
          inoperative to the extent that it may conflict therewith and shall be deemed
          modified to conform with such statute or rule of law. Any such provision, which
          may prove invalid or unenforceable under any law shall not affect the validity
          or enforceability of any other provision of this Warrant. The headings in this
          Warrant are for purposes of reference only, and shall not limit or otherwise
          affect any of the terms hereof. The invalidity or unenforceability of any
          provision hereof shall in no way affect the validity or enforceability of any
          other provision.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, this Warrant is executed as of the date first written above. </FONT></P>


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     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>B.O.S. BETTER ONLINE SOLUTIONS LTD.</FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>BELLITE PTY LIMITED</FONT></TD></TR>
</TABLE>
<BR>

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<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>By:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>Title:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>By:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>Title:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT A </FONT></H1>


    <P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>
                                       FORM OF SUBSCRIPTION
</b><BR>                                (To Be Signed Only On Exercise Of Warrant)
</FONT></P>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To:  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.O.S.
Better Online Solutions Ltd.</FONT></TD>
</TR>
</TABLE>
<BR>



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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Attention: </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chief
Financial Officer</FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned, pursuant to the provisions set forth in the attached Warrant (No.____),
hereby irrevocably elects to purchase (check applicable box): </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;________
Ordinary Shares covered by such Warrant;  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <FONT size="3" face="Wingdings">o
</font> The undersigned herewith makes
payment of the full Exercise Price for such shares at the price per share provided for in
such Warrant, which is $___________. Such payment takes the form of (check applicable box
or boxes): </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="3" face="Wingdings">o
</font>
    $__________ by wire transfer of lawful money of the United States; and/or </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="3" face="Wingdings">o
</font>
    $__________ by certified or official bank check payable to the order of the Company </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 undersigned  requests  that the  certificate  for such  shares be issued in the name of,
and delivered       to       ______________________________________________       whose
      address       is ______________________________________________________________. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned represents and warrants that all offers and sales by the undersigned of the
securities issuable upon exercise of the within Warrant shall be made pursuant to
registration of the Ordinary Shares under the Securities Act of 1933, as amended (the
&#147;Securities Act&#148;) or pursuant to an exemption from registration under the
Securities Act. </FONT></P>


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     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Dated: _____________________</FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>___________________________________________________________</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>(Signature must conform to name of Holder as<BR> specified on the face of the Warrant)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Address: __________________________________________________</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;___________________________________________________</FONT></TD></TR>
</TABLE>
<BR>

<p align=center>
<font size=2>A - 1</font></p>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT B </FONT></H1>


    <P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>
                                  FORM OF TRANSFEROR ENDORSEMENT
</b><BR>                                (To Be Signed Only on Transfer of Warrant)
</FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For value received, the undersigned
hereby sells, assigns, and transfers unto the person named below under the heading
&#147;Transferee&#148; the right represented by the within Warrant to purchase the number
of Ordinary Shares of B.O.S Better Online Solutions Ltd. into which the within Warrant
relates and appoints each such person attorney-at-fact to transfer its respective right on
the books of B.O.S. Better Online Solutions Ltd. with full power of substitution. </FONT></P>


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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B><U>NAME OF TRANSFEREE</U></B> </FONT> </TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B><U>ADDRESS</U></B> </FONT> </TD></TR>
</TABLE>
<BR>


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     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>DATED: </B>_____________________ </FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>___________________________________________________________</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman" SIZE="2"><B>(SIGNATURE MUST CONFORM TO NAME<BR> OF HOLDER AS SPECIFIED ON
THE FACE<BR> OF THE WARRANT)</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>ADDRESS: </B>__________________________________________________ </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;___________________________________________________</FONT></TD></TR>
</TABLE>
<BR>





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     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B>ACCEPTED AND AGREED:</B> </FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B>[TRANSFEREE]</B> </FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>Title:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>




<p align=center>
<font size=2>B - 1</font></p>
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<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>6
<FILENAME>exhibit_5-1.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        F:\EDGAR Filing\BOS better online solutions Ltd\85456\a85456.eep -->
     <!-- Control Number: 85456                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3</TITLE>
</HEAD>
<BODY>

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<P><FONT SIZE=2><IMG SRC="img001.jpg" ALT="(APM &amp; CO. LOGO)"></FONT></P>







<P><FONT SIZE=3><B>Amit, Pollak, Matalon &amp; Co.</B></FONT><BR><FONT SIZE=2>Advocates and Notary</FONT></P>

<P ALIGN=RIGHT><FONT SIZE="2"><U><B>Exhibit 5.1</B></U> </FONT></P>


<P ALIGN=RIGHT><FONT SIZE=2>April 1, 2009</FONT></P>


<P><FONT SIZE=2>B.O.S Better Online
Solutions Ltd.<BR>
20 Freiman Street <BR>
Rishon LeZion 75100 <BR><U>Israel</U></FONT></P>

<P><FONT SIZE=2>Ladies and Gentlemen: </FONT></P>

<P><FONT SIZE=2>We have acted as Israeli
counsel to B.O.S. Better Online Solutions Ltd., an Israeli company (the
&#147;Company&#148;), in connection with the Registration Statement on Form F-3 (the
&#147;Registration Statement&#148;), filed by the Company with the Securities and
Exchange Commission on the date hereof. The Registration Statement relates to
the proposed offer and sale by the Company from time to time, as set forth in
the prospectus contained in the Registration Statement (the &#147;Prospectus&#148;) and
as shall be set forth in one or more supplements to the Prospectus, of up to a
$6,250,000 aggregate amount of Ordinary Shares of the Company, nominal value
NIS 4.00 per share (the &#147;Ordinary Shares&#148;), warrants to purchase Ordinary
Shares and units comprised of Ordinary Shares and warrants (the &#147;Securities&#148;). </FONT></P>


<P><FONT SIZE=2>
In addition, the Registration
Statement relates to the resale from time to time by the selling shareholders identified
therein of up to 4,072,397 Ordinary Shares as follows: (i) up to 2,752,049 Ordinary
Shares, issued by the Company in connection with private placements completed in June 2007
and December 2007 and June, July and August 2008 (the &#147;Outstanding Shares&#148;); and
(ii) up to 1,320,348 Ordinary Shares issuable upon exercise of warrants (the
&#147;Warrants&#148;) held by certain selling shareholders (the &#147;Underlying
Shares&#148;).
</FONT></P>


<P><FONT SIZE=2>In so acting, we have
examined such corporate documents and have made such investigation of matters
of fact and law as we have deemed relevant and necessary as a basis for the
opinion hereinafter set forth. </FONT></P>

<P><FONT SIZE=2>In such examination, we have
assumed the genuineness of all signatures, the legal capacity of natural
persons, the authenticity of all documents submitted to us as originals, the
conformity to original documents of all documents submitted to us as certified,
conformed or photostatic copies and the authenticity of the originals of such
latter documents. As to all questions of fact material to this opinion, we have
relied, without independent investigation, upon statements and certificates or
comparable documents of officers and representatives of the Company and upon
certificates of public officials. We have considered such questions of Israeli
law as we have deemed necessary for the purpose of rendering this opinion. </FONT></P>


<BR>
<BR clear=all>
<BR>
<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
 <TD WIDTH="23%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="71%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Nitsba
 Tower, 19<SUP>th</SUP> Floor</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Tel.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>972
 3 568 9000</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>17
 Yitzhak Sadeh St.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Fax.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>972
 3 568 9001</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Tel Aviv
 67775 Israel</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>
<BR>
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<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


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<TR style="font-size:1px">
<TD WIDTH="15%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="82%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><IMG SRC="img001.jpg" ALT="(APM &amp; CO. LOGO)"></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3><B>Amit,
 Pollak, Matalon &amp; Co.</B></FONT><BR><FONT SIZE=2>Advocates and Notary</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

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<TR style="font-size:1px">
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="94%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP colspan=2>
<P><FONT SIZE=2>We also have assumed that:
(i) at the time of execution, issuance and delivery of any Securities purchase
agreement, such agreement will have been duly authorized, executed and delivered by the
 Company; and (ii) at the time of the issuance and sale of any of the
 Securities, the terms of the Securities, and their issuance and sale, will
 have been established so as not to violate any applicable law or result in a
 default under or breach of any agreement or instrument binding upon the
 Company and so as to comply with any requirement or restriction imposed by
 any court or governmental body having jurisdiction over the Company.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP colspan=2>
<P><FONT SIZE=2>Based upon the foregoing,
 in reliance thereon and subject to the assumptions, comments, qualifications,
 limitations and exceptions stated herein and the effectiveness of the
 Registration Statement under the Securities Act of 1933, we are of the
 opinion that:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the Outstanding Shares
 have been duly authorized and are validly issued, fully paid and
 nonassessable;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the Underlying Shares,
 have been duly authorized and upon exercise of the Warrants in accordance
 with their terms, shall be validly issued, fully paid and nonassessable; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii) </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the  Warrants  constitute  valid and legally  binding  obligations  of the  Company,  enforceable
against the Company in accordance with their terms; and
</FONT></P>
</TD>
</TR>

</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD  WIDTH=1%> </TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With
 respect  to the  Securities,  assuming  the  taking of all  necessary  corporate  action
to               authorize  and approve the issuance of any  Security,  the terms of the
offering  thereof and               related matters;  upon payment of the  consideration
 therefor provided for in the applicable               definitive  purchase,
 underwriting or similar  agreement  approved by the board of directors               and
otherwise in accordance  with the provisions of the applicable  Securities,  if any, such
              Securities will be validly issued,  fully paid and  non-assessable and any
warrants so issued               as part of the  Securities,  will  constitute  valid and
legally  binding  obligations of the               Company, enforceable against the
Company in accordance with their terms. </FONT></TD>
</TR>
</TABLE>
<BR>







<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="94%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>

<TD VALIGN=TOP colspan=2>
<P><FONT SIZE=2>In addition to the
 assumptions, comments, qualifications, limitations and exceptions set forth
 above, the opinions set forth herein are further limited by, subject to and
 based upon the following assumptions, comments, qualifications, limitations
 and exceptions:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>We are members of the
 Israel Bar and we express no opinion as to any matter relating to the laws of
 any jurisdiction other than the laws of Israel and have not, for the purpose
 of giving this opinion, made any investigation of the laws of any other
 jurisdiction than Israel. The opinions set forth herein are made as of the
 date hereof and are subject to, and may be limited by, future changes in the
 factual matters set forth herein, and we undertake no duty to advise you of
 the same. The opinions expressed herein are based upon the law in effect (and
 published or otherwise generally available) on the date hereof, and we assume
 no obligation to revise or supplement these opinions should such law be
 changed by legislative action, judicial decision or otherwise. In rendering
 our opinions, we have not considered, and hereby disclaim any opinion as to,
 the application or impact of any laws, cases, decisions, rules or regulations
 of any other jurisdiction, court or administrative agency. This opinion is
 expressly limited to the matters set forth above, and we render no opinion,
 whether by implication or otherwise, as to any other matters. In addition, we
 render no opinion in relation to any representation made or given in the
 Registration Statement.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>- 2 -</FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">
<P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="15%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="82%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><IMG SRC="img001.jpg" ALT="(APM &amp; CO. LOGO)"></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3><B>Amit,
 Pollak, Matalon &amp; Co.</B></FONT><BR><FONT SIZE=2>Advocates and Notary</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="94%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>You have informed us that
 you intend to issue the Securities from time to time on a delayed or continuous
 basis, and this opinion is limited to the laws, including the rules and
 regulations, as in effect on the date hereof. We understand that prior to
 issuing any Securities you will afford us an opportunity to review the
 operative documents pursuant to which such Securities are to be issued
 (including the applicable prospectus supplement) and will file such
 supplement or amendment to this opinion (if any) as we may reasonably
 consider necessary or appropriate by reason of the terms of such Securities.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP colspan=2>
<P><FONT SIZE=2>This opinion is furnished
 to you solely in connection with the Registration Statement and is not to be
 used, circulated, quoted or otherwise referred to for any other purpose
 without our express prior written permission.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP colspan=2>
<P><FONT SIZE=2>We hereby consent to the
 filing of this opinion with the Securities and Exchange Commission as Exhibit
 5.1 to the Registration Statement and to the reference to our firm under the
 caption &#147;Validity of Securities&#148; in the related Prospectus. In giving such
 consent, we do not thereby concede that we are within the category of persons
 whose consent is required under Section 7 of the Act or the Rules and
 Regulations of the Commission thereunder.</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="60%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="28%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="12%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>Very
 truly yours,</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE="2"><U>/s/
Amit, Pollak, Matalon &amp; Co.</U> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>Amit, Pollak, Matalon &amp; Co.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>- 3 - </FONT></P>

<HR WIDTH="100%" size="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" size="4" noshade style="margin-top: -10px">

</BODY>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>8
<FILENAME>exhibit_10-1.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        \\Backup\EDGAR Filing\BOS better online solutions Ltd\85891\a85891.eep -->
     <!-- Control Number: 85891                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3/A                                                            -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3/A</TITLE>
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<BODY>

<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100% SIZE=4 NOSHADE STYLE="margin-top: -5px">
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<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN="Right"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 10.1</B></U> </FONT> </P>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>FIRST AMENDMENT TO THE
ASSET PURCHASE AGREEMENT
<BR><BR>DATED JANUARY 29, 2008</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Made and entered into as of March 23,
2009 by and among <B>Dimex Systems (1988) Ltd.</B> (Hereinafter &#147;<B>DS</B>&#148;),
and <B>Dimex Hagalil Ltd.</B> (hereinafter: &#147;<B>DHG</B>&#148;), (DS and DHG, each a
Seller and shall be referred herein together as the &#147;<B>Sellers</B>&#148;) and
<B>B.O.S Better Online Solutions Ltd.</B> (the &#147;<B>Buyer</B>&#148;) </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Whereas, </B></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
Parties entered into that certain Asset Purchase Agreement, dated January 29, 2008 (the
&#147;<B>Agreement</B>&#148;); and </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Whereas, </B></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
Parties desire to amend certain of the payment terms under the Agreement applicable to
the 3<SUP>rd</SUP>, 4<SUP>th</SUP> and 5<SUP>th</SUP> Installments (as such terms are
defined in the Agreement), all as set forth hereinbelow (the &#147;<B>Amendment</B>&#148;<B>)</B>. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Now, Therefore,</B> the Parties
hereby agree as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All
capitalized terms in this Amendment that have not been otherwise defined           herein
shall have the meaning assigned thereto in the Agreement. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Buyer
confirms that as of the date hereof Buyer owes Sellers an aggregate amount           of
NIS 10,051,000 on account of the Purchase Price (the &#147;<B>Outstanding           Debt</B>&#148;).
Buyer further confirms that any applicable VAT with respect to           the Outstanding
Debt has already been paid by Buyer or shall be born and paid           solely by Buyer
to the VAT Authorities. </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Parties agree that in lieu of the payment provisions detailed in Section 3.1           to
the Agreement relating to the 3<SUP>rd</SUP>, 4<SUP>th</SUP> and           5<SUP>th</SUP> Installments,
the Outstanding Debt shall be paid by Buyer to           Sellers as follows: </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>An
amount of NIS 500,000 on account of the Outstanding Debt has already been
               paid to Sellers on March 12<SUP>th</SUP>, 2009. </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
remainder of the 3<SUP>rd</SUP> Installment, in the amount of NIS 3,000,000,
               will be paid by Buyer to Sellers as follows: </FONT></TD>
</TR>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
later than March 18<SUP>th</SUP>, 2009 &#150; Buyer shall pay Sellers NIS
          500,000; and  </FONT></TD>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
later than March 26<SUP>th</SUP>, 2009 &#150; Buyer shall pay Sellers NIS
          2,500,000.  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>An
amount of NIS 4,000,000 (comprising of the 4<SUP>th</SUP> Installment in full
               and NIS 500,000 out of the 5<SUP>th</SUP> Installment) will be paid in 6
monthly                installments of NIS 666,666.66 each, the first of which shall be
paid on January                15<SUP>th</SUP>, 2010, and the remaining 5 installments to
be paid on the                15<SUP>th</SUP> day of each proceeding calendar month
thereafter. </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>An
amount of NIS 2,551,000 (comprising of the remainder of the 5<SUP>th</SUP>               Installment)
(the &#147;<B>Last </B><B>Installment</B>&#148;) will be paid on                the
following dates, if not earlier converted in the framework of a                &#147;Qualified
Offering&#148; (as defined below), pursuant to the provisions of                Section 7
below: </FONT></TD>
</TR>
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<p align=center>
<font size=2></font></p>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On
March 12<SUP>th</SUP>, 2010 &#150; Buyer shall pay Sellers NIS 1,275,500; and  </FONT></TD>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On
April 30<SUP>th</SUP>, 2010 &#150; Buyer shall pay Sellers the remainder of           the
Last Installment in the amount of NIS 1,275,500.  </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Outstanding Debt will be allocated between the Sellers, and paid to each of
          them respectively in accordance the instructions specified in <B><U>Schedule
          4</U></B><U></U> to this Amendment. </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Parties agree that for the purpose of Section 12.4(b) of the Agreement,
          reference to the last Installment therein shall be deemed to refer to the Last
          Installment hereunder (i.e. Buyer shall be entitled to reduce amounts and
Losses           (as defend therein) from the Last Installment of NIS 2,551,000). </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notwithstanding
and without derogating from any right or remedy available to           Sellers under the
Agreement, under this Amendment or pursuant to applicable law,           upon the
occurrence of the &#147;Event of Default&#148; detailed in Section (ii)           to the
definition of the term &#147;Event of Default&#148; in the Agreement,           without
notice by Sellers to, or demand by Sellers of Buyer, all of the           Outstanding
Debt which has not yet been paid to Sellers shall automatically           become
immediately due and payable by Buyer to Sellers and shall not be subject           to
conversion upon a Qualified Offering. In any other Event of Default, all of           the
Outstanding Debt which has not been yet paid to Sellers shall become
          immediately due and payable by Buyer to Sellers and shall not be subject to
          conversion upon a Qualified Offering. </FONT></TD>
</TR>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Term &#147;Event of Default&#148; (as defined in the Agreement) shall be amended to also
include Buyer&#146;s failure to issue to the Sellers the debentures in the framework of a
Qualified or a Non-Qualified Offering (as such term is defined below) pursuant to the
terms hereof, where such failure is not cured within thirty (30) days following notice
sent to Buyer by Sellers<B>.</B> </FONT></TD>
</TR>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Without
derogating from the forgoing, or from any right or remedy available to a party hereunder
or pursuant to applicable law, any payment hereunder not paid when due shall bear interest
at the rate of Prime + 5.5% per annum. </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Should
a &#147;Qualified Offering&#148; (as defined below) of the Buyer be           consummated
by March 12, 2010 (the &#147;<B>Target Date</B>&#148;), the Last           Installment
shall be converted, at the closing of such Qualified Offering, into           the same
type of convertible debentures issued in the framework of such           Qualified
Offering and on the same terms and conditions (and if there is more           than one
type of convertible debentures issued in the Qualified Offering, into           the most
preferential (to the holders) convertible debentures so issued) (the           &#147;<B>Debentures</B>&#148;).
Any such conversion shall be conditioned upon           Buyer complying <U>in full</U> with
all of its obligations hereunder, including           its obligations to pay the
Outstanding Debt as detailed in this Amendment.           Without derogating from any
right and/or remedy of Sellers hereunder and/or           pursuant to applicable law,
including Sellers&#146; right to repayment of the           entire Outstanding Debt owed
upon an Event of Default, any failure by Buyer to           comply with all of its
obligations hereunder, including its obligations to pay           the Outstanding Debt or
any part thereof, Buyer shall not be required to convert           the Last Installment
into Debentures, and the Last Installment shall, at           Sellers&#146; sole
discretion, either (i) become due and payable pursuant to the           provisions of
Section 3(iv) above, notwithstanding the consummation of the           Qualified
Offering; or (ii) be converted, in whole or in part, in the framework           of the
Qualified Offering pursuant to the terms above. Sellers shall provide           Buyer
with no less than 45 days prior notice of their election hereunder. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>2</font></p>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Notwithstanding
the foregoing, Buyer shall be entitled to notify Sellers no later than 30 days prior to
the consummation of a Qualified Offering, of its intention prepay the entire amount of the
Last Installment no later than the Target Date, provided that in such event Sellers shall
be entitled, by notice issued to Buyer within 14 days of receipt of Buyer&#146;s notice,
to participate in such Qualified Offering and convert an amount of up to 50% of the Last
Installment into the Debentures. Following such notice by Buyer, the remaining part of the
Last Installment not &#150;so converted by the Sellers shall be paid to Sellers no later
than the Target Date. </FONT></TD>
</TR>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
A
&#147;<B>Qualified Offering</B>&#148; shall mean the offering to or purchase by some of
the then current shareholders of Buyer (excluding Sellers) and, possibly but not
necessarily, by third party(ies), of debentures convertible into Ordinary Shares of Buyer
of NIS 4.00 nominal value each (&#147;<B>Ordinary Shares</B>&#148;) , pursuant to which
Buyer shall have raised a minimum cash amount of US $1,500,000 (excluding the amount of
the Last Installment), which debentures shall include the following minimum terms: (i) the
debentures shall carry an annual interest rate of 8% per annum, compounded annually; (ii)
unless converted at the option of the holder, the debentures (principal and accrued
interest) shall be fully repaid no later than 36 months following the date of their
issuance; (iii) such repayment shall not be subject to any third party consent; and (iv)
each debenture shall entitle its owner to receive warrants at 50% coverage of the amount
of the debenture, exercisable into fully paid Ordinary Shares, at an exercise price not to
exceed US $0.70 per Ordinary Share (the &#147;<B>Exercise Price</B>&#148;). The number of
Ordinary Shares purchasable upon the exercise of such warrants and the Exercise Price
shall be subject to customary adjustment in the event of capital reorganization of the
shares of the Buyer, or, if applicable, a merger or consolidation of the Buyer with or
into another corporation, or any reclassification, subdivision and/or combination of
shares of Buyer. </FONT></TD>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Any
offering or issuance by Seller of shares and/or other securities and/or of debentures to
its then current shareholders or to any other third party(ies), by the Target Date, in
terms less favorable to the holders or in a lower amount than provided under the terms of
a Qualified Offering shall be referred to herein as a &#147;<B>Non-Qualified
Offering</B>&#148;. </FONT></TD>
</TR>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
It
is clarified and agreed that following consummation of a Qualified Offering in which
Sellers have participated, any change or amendment to the terms of such Offering which
adversely affects the Sellers, shall require Sellers&#146; prior written consent. </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
the extent that a Non-Qualified Offering has occurred by the Target Date,
          Sellers shall be entitled, at their sole discretion, to participate in such
          Non-Qualified Offering and to convert all or part of the Last Installment into
          the debentures offered in the framework of such Non-Qualified Offering. Any
          amount so converted shall first be deducted from the second payment to be made
          on account of the Last Installment (on April 30<SUP>th</SUP>, 2010) and the
          remainder (if any) shall be deducted from the payment to be made on March
          12<SUP>th</SUP>, 2010. </FONT></TD>
</TR>
</TABLE>
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<p align=center>
<font size=2>3</font></p>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Buyer
shall notify Sellers in writing, no later than 45 days prior to the           closing of
a Qualified Offering or as soon as practical prior to the closing of           a
Non-Qualified Offering, of the occurrence of same, which notice shall include
          all of the material and information provided to those parties participating in
          such Offering, in order to allow Sellers to evaluate its participation in such
          offering. </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Buyer
hereby undertakes towards Sellers not to pay or commit to pay (from its
          profits, capital or any other source) to its shareholders and/or controlling
          parties or to any of their family members and/or affiliated companies, in a
          direct or a indirect form or manner, dividends as defined in the Israeli
          Companies Law 1999, principle or interest payments in respect of any loans,
          management fees, or other amounts, except in the ordinary course of business. </FONT></TD>
</TR>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Nothing
herein shall be deemed to limit the Buyer&#146;s ability to make payments (a) to Cukierman
&amp; Co. Investment House Ltd. under the Services Agreement dated April 15, 2003, as
amended and as may be amended from time to time; (b) as fees due in connection with
financings of the Company, up to a maximum amount of 10% of the applicable financing; and
(c) to its debenture holders as they may exist in the future. </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Upon
conversion of the Last Installment in full or in part, as the case may, in the framework
of a Qualified Offering or a Non-Qualified Offering, the Buyer shall not be required to
make any repayment to the Sellers of the converted portion of the Last Installment and
the obligation to repay such amount shall be deemed fully satisfied upon the issuance of
the applicable Debentures. </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sellers hereby irrevocably confirm and undertakes to Buyer that to the date
          hereof neither they, nor any other person or entity on their behalf, has any
          claims and/or demands against Buyer or any person or entity on its behalf,
          including against Dimex Solutions Ltd. (previously BOScom Ltd.) and/or Dimex
          Hagalil Projects (2008), under and/or pursuant to the Agreement, including in
          connection with any obligations, undertakings, representations and/or
warranties           made by the Buyer thereunder, and hereby irrevocably waive any such
claims           and/or demands to the extent such exist. </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer
hereby irrevocably confirms and undertakes to Sellers that as of the date hereof neither
it, nor any other person or entity on its behalf, has any claims and/or demands against
Sellers or any person or entity on their behalf, including against M.T.A.Y Holdings Ltd.
(previously Dimex Holdings (1998) Ltd.), under and/or pursuant to the Agreement,
including in connection with any obligations, undertakings, representations and/or
warranties made by the Sellers thereunder, and hereby irrevocably waives any such claims
and/or demands to the extent such exist. </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition and without derogating from anything else in this Amendment, Buyer hereby
irrevocably releases and discharges Sellers from any and all claims and/or demands
against Sellers or any person or entity on their behalf, including against M.T.A.Y
Holdings Ltd. (previously Dimex Holdings (1998) Ltd.) Buyer may have under and/or
pursuant to the Agreement, including in connection with any obligations, undertakings,
representations and/or warranties made by the Sellers thereunder. Buyer&#146;s sole
rights to claims and/or demands against Sellers shall be limited to its rights under this
Amendment only, except that the aforementioned release and discharge shall not apply with
respect to the Buyer&#146;s right for indemnification in case of any third party claim(s)
against Buyer (including without limitation, any claim by a governmental agency or
employee) in connection with the issues and under the terms detailed in Sections 12.1
(b), (d) and (e) to the Agreement, and with respect to Allowed Deductions as defined in
Section 3.2 of the Agreement (but excluding 3.2(ii) as it relates to adjustments under
Section 3.7). </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>4</font></p>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sellers
acknowledge that, except in respect of the payment schedule of the           3<SUP>rd</SUP> Installment,
which is effective as of the date hereof, this           Amendment is subject to approval
by the Buyer&#146;s Board of Directors (the           &#147;<B>Board</B>&#148;). This
Amendment shall be automatically terminated if           not approved by the Board by
March 30, 2009. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Except
as amended by this Amendment, the Agreement shall remain in full force           and
effect. </FONT></TD>
</TR>
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<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>[remainder of page
intentionally left blank] </I></FONT></P>

<p align=center>
<font size=2>5</font></p>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>In Witness Whereof</B>, the
parties hereto have caused this Amendment to be duly executed on the day and year first
above written: </FONT></P>




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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
<B>Dimex Systems (1988) Ltd.</B><BR><BR>By: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Title: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
<TD WIDTH=45%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
<B>Dimex Hagalil Ltd.</B><BR><BR>By: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Title: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD>
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<BR>
<BR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
<B>B.O.S Better Online Solutions Ltd.</B><BR><BR>By: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Title: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR></FONT></TD>
<TD WIDTH=45%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
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<font size=2>6</font></p>
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<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>9
<FILENAME>exhibit_23-2.htm
<TEXT>
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     <!-- Project:        \\Backup\office\EDGAR Filing\BOS better online solutions Ltd\85891\a85891.eep -->
     <!-- Control Number: 85891                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3/A                                                            -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3/A</TITLE>
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<H1 ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Exhibit 23.2</U> </FONT> </H1>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSENT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> We consent to the reference to our
firm under the caption &#147;Experts&#148; in this Registration Statement on Form F-3
dated April 1, 2009 and related prospectus of B.O.S Better Online Solutions Ltd.
(&#147;BOS&#148;) and to the incorporation by reference therein of our report dated March
29, 2009, with respect to the consolidated financial statements of BOS included in its
report on Form 6-K, filed with the Securities and Exchange Commission on March 31, 2009 </FONT></P>


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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2> /s/ KOST, FORER GABBAY &amp; KASIERER </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2> Tel Aviv, Israel </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2> KOST, FORER GABBAY &amp; KASIERER </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2> April 1, 2009 </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2> A Member of Ernst &amp; Young Global </FONT></TD></TR>
</TABLE>
<BR>





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<DOCUMENT>
<TYPE>EX-23.3
<SEQUENCE>10
<FILENAME>exhibit_23-3.htm
<TEXT>


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     <!-- Project:        F:\EDGAR Filing\BOS better online solutions Ltd\85891\a85891.eep -->
     <!-- Control Number: 85891                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3/A                                                            -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3/A</TITLE>
</HEAD>
<BODY>



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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Exhibit 23.3</U></B> </FONT> </P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>CONSENT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM</U> </FONT> </H1>




<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> We consent to the references to our
firm under the caption &#147;Experts&#148; in this Registration Statement on Form F-3 and
related prospectus of B.O.S Better Online Solutions Ltd. (&#147;BOS&#148;) and to the
incorporation by reference therein of our report dated March 29, 2009, with respect to the
consolidated financial statements of BOS&nbsp;- Supply Chain Solutions (Lynk) Inc.
(formally known as Lynk USA Inc.) included in BOS&#146;s report on Form 6-K, filed with
the Securities and Exchange Commission on March 31, 2009. </FONT></P>




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<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> <BR>
<BR><U>/s/ ARIK ESHEL, CPA &amp; ASSOC., PC<BR></U>ARIK ESHEL, CPA &amp; ASSOC., PC </FONT></TD>
</TR>
</TABLE>
<BR>









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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> March 31, 2009 </FONT></P>


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<DOCUMENT>
<TYPE>EX-23.4
<SEQUENCE>11
<FILENAME>exhibit_23-4.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\BOS better online solutions Ltd\85891\a85891.eep -->
     <!-- Control Number: 85891                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3/A                                                            -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3/A</TITLE>
</HEAD>
<BODY>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Exhibit 23.4</U></B> </FONT> </P>



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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> April 1, 2009 </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> <U>Consent of Expert</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> We consent to the reference to our
firm under the caption &#147;Experts&#148; in the Registration Statement on Form F-3 (File
No. 333-152020) and related prospectus of B.O.S. Better Online Solutions Ltd. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Variance Economic
Consulting Ltd. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> <U>By: /s/ Variance Economic Consulting Ltd.
</U><BR>Name: Ram Levy, CPA
<BR>Title: Manager </FONT>
</P>



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