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<SEC-DOCUMENT>0001178913-09-001079.txt : 20090511
<SEC-HEADER>0001178913-09-001079.hdr.sgml : 20090511
<ACCEPTANCE-DATETIME>20090511151628
ACCESSION NUMBER:		0001178913-09-001079
CONFORMED SUBMISSION TYPE:	F-3/A
PUBLIC DOCUMENT COUNT:		8
FILED AS OF DATE:		20090511
DATE AS OF CHANGE:		20090511

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:		09814521

	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>zk96736.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        \\Backup\edgar filing\BOS better online solutions Ltd\96736\a96736.eep -->
     <!-- Control Number: 96736                                                            -->
     <!-- 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 May 11, 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. 2 <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> BOS - Supply Chain Solutions (Summit), Inc. <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"> 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" bgcolor="#cceeff">
    <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">  9,502,030  </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">  373.43 </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 1,736,796 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&#146;s ordinary shares on the
          NASDAQ Global Market on June 27, 2008 of $1.47.




 </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 is $2.76 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> 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  May 11, 2009 </FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2> Up to a total dollar amount of $6,250,000 of Ordinary Shares, Warrants and Units offered by
the Company and <BR>1,736,796 of 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 up to a total dollar amount of $6,250,000 of: </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. On May 8, the aggregate market value
of our outstanding ordinary shares (all of which are voting) was $6,904,582.  </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 1,736,796 ordinary shares purchased
in private placement transactions in 2007 and 2008, including up to 541,814 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, until May 10, 2009, on the Tel
Aviv Stock Exchange (&#147;TASE&#148;) under the symbol &#147;BOSC&#148;. On May 7, 2009,
the last reported sale price of our ordinary shares on the NASDAQ Global Market was $0.54
per share and on the TASE was NIS2.406 per share. You are urged to obtain current market
quotations for the ordinary shares.
<BR><BR>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 was 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 1,736,796 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&#146;
websites are: Odem Electronic Technologies 1992 Ltd. &#151; www.odem.co.il; Dimex
Solutions Ltd. &#150; <U>www.dimex.co.il</U> and BOS &#151; Supply Chain Solutions
(Summit), Inc.<B> </B>&#150; 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 &#150;
conducted through two wholly owned subsidiaries: Odem Electronic Technologies 1992 Ltd.
(&#147;Odem&#148;) and BOS &#151; Supply Chain Solutions (Summit), Inc. (formally known
as<B> </B>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. Recently, Lynk USA, Inc., has changed its name to BOS &#151; Supply Chain
Solutions (Lynk) Inc. and Summit Radio Corp. has changed its name to BOS &#151; Supply
Chain Solutions (Summit), Inc. 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>
 </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 1,736,796 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 1,084,892
ordinary shares that were issued in private placements in June 2007 and December 2007;   </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 541,814 ordinary shares issuable to the selling shareholders upon the exercise of
warrants that were issued in the December 2007 private placement; 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;).





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

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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
For
additional  details see           &#147;Selling Shareholders&#148;. </FONT></TD>
</TR>
</TABLE>
<BR>


<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>
<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><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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<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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<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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<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 BOS&acirc;NOVA 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. In addition, the former distributor has recently commenced a
lawsuit against Dimex&nbsp; Solutions seeking unspecified damages as a result of
Dimex&#146;s alleged failure to provide the required level of technical support under the
distribution agreement. The Company intends to contest this lawsuit vigorously.




 </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 April 30, 2009, the U.S. dollar depreciated against the NIS by approximately
7.8%, 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>
<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;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>
<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;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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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<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 April 30, 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,   April  30,  2009  the
                       devaluation of the dollar against the NIS was 7.8%.





 </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>
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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;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>
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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"><U><B>Risks related to our location in Israel</B></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>
<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="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&#146;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 was 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&#146;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=center><font size=2>17</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="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 was 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   </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"> 0.25  </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>
  <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">  April   </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">  0.60  </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"> 0.39  </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">  1.62  </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 1,736,796 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>
  </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 April 30, 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>
  </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 April 30, 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>
 </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>
<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;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>
<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;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>
<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="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>
<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="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, March 31, 2009, April 2, 2009, April 7, 2009
(Proxy Statement) and April 27, 2009 (paragraphs 1, 2, 4 and 6 of the press release
attached to the 6-K), May 6, 2009 and May 7, 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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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>


<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 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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<hr size="4" noshade  style="margin-top: -10px">
<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> Up
to a total dollar amount of $6,250,000 of Ordinary Shares, Warrants and Units by the
Company <BR>and 1,736,796 of </B> <B>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>
<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;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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<hr size="4" noshade  style="margin-top: -10px">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 9.&nbsp;&nbsp; EXHIBITS </B></FONT></P>

<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR align="center">
    <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>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman"> 4.5<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>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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 Share Purchase Warrant. </font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman"> 4.7<SUP>&#135;&#135;</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>
  </TR>

  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>



  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman"> 4.8<SUP>&#135;&#135;&#135;</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.


 </font></TD>
  </TR>




  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman"> 10.1<SUP>&#135;&#135;&#135;&#135;</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">

Asset Purchase Agreement dated as of January 29, 2008 by and among the Company, Dimex Systems (1988) Ltd. and
Dimex Hagalil Ltd.


 </font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman"> 10.2** </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">


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


 </font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman"> 10.3**** </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">





Credit Line agreements by and between
Bank Leumi Le-Israel and each of Odem Electronic Technologies 1992 Ltd. and Dimex
Solutions Ltd.; Covenant Letters and Subordination Letters.





 </font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top colSpan=3></TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD colspan="3" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="3" vAlign=top><hr align="left" width="100" size="1" color="#808080"></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  </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>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <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>
  </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>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <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>
  </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>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <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>
  </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>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <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>
  </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>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <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"> Incorporated by reference to the Company&#146;s Annual Report on Form 20-F filed on June 17, 2004.  </font></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>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <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 27, 2005. </font></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>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <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 Exhibit No. 4.10 to the Company&#146;s Annual Report on Form 20-F filed
with the SEC on June 30, 2008.  </font></TD>
  </TR>
</TABLE>
<p align=center><font size=2>35</font></p>
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<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 10. UNDERTAKINGS</B></FONT></P>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <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>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</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">(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>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <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>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <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>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</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">(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>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</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">(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>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</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">(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>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></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">(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>
  </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>
    <TD vAlign=top><font size="2" face="Times New Roman">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
  </TR>
  <TR height=0>
    <TD></TD>
    <TD></TD>
    <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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<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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<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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<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. 2 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 May
11, 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=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> May 11, 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> May 11, 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> May 11, 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>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<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">
    <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 align="center">
    <TD colSpan=3 vAlign=top><P><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><P><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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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"> May 11, 2009 </FONT></TD>
  </TR>
  <TR align="center">
    <TD colSpan=3 vAlign=top><HR align=center width="100%" color=gray noShade SIZE=1>
    </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"> &nbsp; </FONT></TD>
  </TR>
  <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>
    <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>
  </TR>
  <TR align="center">
    <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><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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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"> May 11, 2009 </FONT></TD>
  </TR>
  <TR align="center">
    <TD colSpan=3 vAlign=top><HR align=center width="100%" color=gray noShade SIZE=1>
    </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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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>
    <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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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><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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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>
  </TR>
  <TR align="center">
    <TD colSpan=3 vAlign=top><HR align=center width="100%" color=gray noShade SIZE=1>
    </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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <TD colSpan=3 vAlign=top><P align=center><font size="2" face="Times New Roman"> Mr. David Golan </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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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><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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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"> May 11, 2009 </FONT></TD>
  </TR>
  <TR align="center">
    <TD colSpan=3 vAlign=top><HR align=center width="100%" color=gray noShade SIZE=1>
    </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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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><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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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>
  </TR>
  <TR align="center">
    <TD colSpan=3 vAlign=top><HR align=center width="100%" color=gray noShade SIZE=1>
    </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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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>
    <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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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><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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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"> May 11, 2009 </FONT></TD>
  </TR>
  <TR align="center">
    <TD colSpan=3 vAlign=top><HR align=center width="100%" color=gray noShade SIZE=1>
    </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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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>
    <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>
  </TR>
  <TR align="center">
    <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><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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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"> May 11, 2009 </FONT></TD>
  </TR>
  <TR align="center">
    <TD colSpan=3 vAlign=top><HR align=center width="100%" color=gray noShade SIZE=1>
    </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><P align=center><font size="2" face="Times New Roman"> &nbsp; </FONT></P></TD>
  </TR>
  <TR align="center">
    <TD colSpan=3 vAlign=top><P align=center><font size="2" face="Times New Roman"> Mr. Joel Adler </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><P align=center><font size="2" face="Times New Roman"> &nbsp; </FONT></P></TD>
  </TR>
  <TR align="center">
    <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>
    <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>
    <TD colSpan=3 vAlign=top><font size="2" face="Times New Roman"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <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"> &nbsp; </FONT></TD>
  </TR>
  <TR align="center">
    <TD colSpan=3 vAlign=top><HR align=center width="100%" color=gray noShade SIZE=1></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>
    <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>
  </TR>
  <TR align="center">
    <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>
    <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>
  </TR>
  <TR align="center">
    <TD colSpan=3 vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD colSpan=3 vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD colSpan=3 vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<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>
  </TR>
  <TR>
    <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"> <B>Authorized Representative in the U.S.:</B> </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"> &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"> &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"> BOS - Supply Chain Solutions (Summit), Inc. </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"> &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>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>
  </TR>
  <TR>
    <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><HR align=center width="100%" color=gray noShade SIZE=1>
    </TD>
    <TD vAlign=top><P>&nbsp;</P></TD>
  </TR>
  <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>
  </TR>
  <TR>
    <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>
  <TR>
    <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>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"> May 11, 2009 </FONT></P></TD>
    <TD vAlign=top><P>&nbsp;</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>
    <TD vAlign=top><font size="2" face="Times New Roman"> &nbsp; </FONT></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</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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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.6
<SEQUENCE>2
<FILENAME>exhibit_4-6.htm
<TEXT>
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<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        \\Backup\edgar filing\BOS better online solutions Ltd\96736\a96736.eep -->
     <!-- Control Number: 96736                                                            -->
     <!-- 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>

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<P align=right><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 4.6</B></U> </FONT> </P>

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<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 ________ 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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<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: _________________</FONT></TD></TR>
</TABLE>
<BR>



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     <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 ___________ (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
          $_______ 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>


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<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>

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<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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<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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<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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<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>

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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>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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<P><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></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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<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>2.3 </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>

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<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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<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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<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>

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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>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>

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<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>

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<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>

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<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>
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<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>

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<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>

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<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>

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<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>

<p align=center>
<font size=2>5</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. &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 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>

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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>

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


<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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     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
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<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>&nbsp;</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>

<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>

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

<!-- 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;________
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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<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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     <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>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;&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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     <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>
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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=center><FONT FACE="Times New Roman" SIZE=2>___________________________________________________________</FONT></TD></TR>
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     <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>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman" SIZE="2"><B>ADDRESS: </B>__________________________________________________ </FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman" SIZE=2><BR><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;___________________________________________________</FONT></TD></TR>
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     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B>ACCEPTED AND AGREED:</B> </FONT></TD>
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     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B>[TRANSFEREE]</B> </FONT></TD></TR>
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<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>
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<p align=center>
<font size=2>B - 1</font></p>
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<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>3
<FILENAME>exhibit_5-1.htm
<TEXT>
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     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        \\Backup\edgar filing\BOS better online solutions Ltd\96736\a96736.eep -->
     <!-- Control Number: 96736                                                            -->
     <!-- 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 SIZE="2"><U><B>Exhibit 5.1</B></U> </FONT></P>


<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> May 11, 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 1,736,796 Ordinary Shares as follows: (i) up to 1,194,982 Ordinary
Shares, issued by the Company in connection with private placements completed in June
2007, December 2007 and June 2008 (the &#147;Outstanding Shares&#148;); and (ii) up to
541,814 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>
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 <P>&nbsp;</P>
 </TD>
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 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="71%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
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 <TR>
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 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>

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 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=gray ALIGN=CENTER>

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 </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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<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>

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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>
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<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>
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<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 (the &#147;Act&#148;), we are of the opinion that:

</FONT></P>
</TD>
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<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>
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<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>
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<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>

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

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<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>
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<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>

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<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>

</HTML>
</TEXT>
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<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>5
<FILENAME>exhibit_10-3.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        \\Backup\edgar filing\BOS better online solutions Ltd\96736\a96736.eep -->
     <!-- Control Number: 96736                                                            -->
     <!-- 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>

<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100% SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE STYLE="margin-top: -10px">

<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 10.3</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>Bank Leumi &#150; Odem
Electronic Technologies 1992 Credit Line Agreement<BR><BR>[Translated from Hebrew]
</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: 23/3/09 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To: </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Odem Electronic
Technologies 1992 Ltd. (hereafter &#147;the Company&#148;)</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Sir or Madam.,</FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>


As per your request, we hereby inform
you, that we Bank Leumi Le-Israel Ltd. (hereafter-&#147;<B>the Bank</B>&#148;), are
prepared in principle to place at your disposal credit up to a total sum that will not
exceed 27,100,000 (twenty-seven million one hundred thousand N.I.S. only) and all subject
to all the conditions detailed in this document below.


 </FONT></P>




<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>The Credit Framework</U> </FONT> </H1>

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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>1.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
credit framework will be extended according to the following breakdown: </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>1.1.1. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Short-term
credits in a total amount that will not exceed 9,600,000 N.I.S. (nine
               million hundred thousand N.I.S. only), whose payment date shall occur no
later                than 31/06/09 &#147;<B>Short term credits</B>&#148; means credits
whose                repayment date will be no later than 12 months from the time of
their provision.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>1.1.2. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-term
credits in a total amount that will not exceed 8,200,000 N.I.S. (eight
               million two hundred thousand N.I.S. only) that were placed at the disposal
of                the company prior to the date of this document according to the
following                details: Loan number 400300399 671-10-120800-08 in the amount of
4,000,000                N.I.S. on 25/06/08. Loan number 903500016 671-20-120800/08 in
the amount of                $1,000,000 on 25/06/08. After each one of the aforementioned
loans is repaid,                the bank will be prepared to enlarge the short-term
credit framework as detailed                in paragraph 1.1.1 above in an amount equal
to the amount of the loan that was                paid.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>1.1.3. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-term
credits in a total amount that will not exceed 2,300,000 N.I.S. (two
               million three hundred thousand N.I.S. only) that were placed at the
               company&#146;s disposal before the date of this document in accordance
with that                detailed hereinafter: Loan number 302000015 671-10-120800/08 in
the amount of                6,000,000 on 28/03/07.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>1.1.4. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Additional
long-term credit in conjunction with the agreement of 29/1/2008                between
the company and Dimex Systems (1998) Ltd. with reference to the Asset
               Purchase Agreement of the assets of Dimex Systems (1998) Ltd. (hereafter
               &#147;the agreement&#148;) in a total amount that will not exceed
6,000,000 (six                million N.I.S. only) that will be utilized as per the
repayment table for                non-tangible assets according to the flow that was
transferred to the bank, that                is attached to this letter and marked &#147;A&#148;.
The last day for utilizing                the aforementioned credit will occur no later
than 31/3/2010. <B>&#147;Long-term                credits</B>&#148; means-loans whose
final payment dates will occur more than 12                months after they have been
provided but no later than 31/3/2013.  </FONT></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>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Let
it be clear that the bank will be prepared to authorize the use of this credit framework,
contingent upon the company displaying to the bank its external financial resources
(hereafter &#147;external resources&#148;) and supplementary resources for the full
payment of the debt to Dimex Systems (1988) Ltd., as per the flow that was transferred to
the bank, attached to this letter and marked &#147;A&#148;. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;External
sources&#148;, means sources that do not derive from the use of the short-term credit
frameworks that were provided the company in order to finance its current activity. </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>1.1.5. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Additional
long-term credits in a total amount that will not exceed 700,000                N.I.S.
(seven hundred thousand N.I.S.) will be extended upon the receipt of an
               irrevocable directive signed by you to transfer the amount to account
number                142900/82 in the name of the B.O.S. Better Online Solutions Ltd.
that is being                managed in the Rishon Lezion Commercial Branch-671 when the
last day for                utilizing the aforementioned credit will occur no later than
31/3/2010.                &#147;<B>Long-term credit</B>&#148; means-loans whose final
payment date will                occur later than 12 months after their provision, but no
later than 31/3/2013.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>1.1.6. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
credit framework for the purpose of issuing bank obligations on behalf of
               the customers, such as issuing bank guarantees etc., in a total aggregate
amount                that will not exceed 300,000 (three hundred thousand N.I.S. only)
whose final                payment date will occur no later than 1/1/2000 and provided
that the last day                for utilizing the credit on account of the
aforementioned credit framework shall                occur no later than 31/08/09.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Any
amount that will not be exploited on account of the credit framework can be exploited as
short-term credit according to the conditions detailed in paragraph 1.1.1 above. </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>1.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
currency of the credit and the other conditions of the credit including the
          interest rate for each part and the commissions attached to it, will be as
          agreed upon in writing between the bank and yourselves before the credit is
          provided and if it will not be agreed upon as is accepted practice in the bank
          regarding credit of that category, at the time that it is provided. </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>1.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Let
it be clear that the credit framework includes also credits of any category
          whatsoever that the bank will extend to you in practice in any account
          whatsoever prior to the signing of this document and/or any credit framework
          agreed upon between the bank and yourselves prior to the signing of this
          document. </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>1.4. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any
credit from the frameworks detailed in paragraphs 1.1.3 and 1.1.4 that was
          utilized and repaid prior to the final date for its utilization will not be
          provided anew. </FONT></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>

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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"><B>2.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Securities</U></B> </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>2.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Let
it be clear that in order to guarantee the full and the punctilious           repayment
of all your debts and obligations all the securities and guarantees of           every
type and category that were provided and/or will be provided the bank by           you
and/or by any third party whatsoever will be at the bank&#146;s disposal,
          including and without detracting from the generality of the aforesaid, the
          following securities and guarantees: </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>2.1.1. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Promissory
notes, unlimited in amount, pledge documents under which a fixed lien           will be
imposed on your non-released stock capital and goodwill as well as a           floating
Lien on all the assets and rights of any category whatsoever, that you           possess
and will possess in the future;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>2.1.2. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Promissory
notes, unlimited in amount, pledge documents under which a fixed lien           will be
imposed on the non-released stock capital and goodwill as well as a           floating
lien on all the assets and rights of any category whatsoever, of B.O.S.           Better
Online Solutions Ltd. as well as a floating lien on all assets and rights           of
any type or category whatsoever that B.O.S. Better Online Solutions Ltd.
          possesses or will possess in the future;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>2.1.3. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Promissory
notes, unlimited in amount and pledge documents via which B.O.S.           Better Online
Solutions Ltd. will mortgage its securities in Odem Electronic           Technologies
1992 Ltd. and all the rights on their behalf.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>2.1.4. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>




At all times there will be on deposit
at your account at Leumi Bank Israel Ltd. and mortgaged on behalf of the bank in a first
ranking fixed lien, without any limit to the amount, checks and notes of customers that
are accepted by the bank and that would award the bank the right of someone who lawfully
holds them, whose total amount deposited in your account in the Israel Leumi Bank Ltd.
will not fall below the amount of 1,875,000 N.I.S. (one million eight hundred and seventy
five thousand N.I.S. only) (hereafter &#147;<B>the mortgaged notes</B>&#148;).





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

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<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>2.1.5. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
fixed lien of the first degree and the endorsement of rights via mortgaging           all
their rights, including the right to receive monies, according to the           agreement
with Beterton Development and Properties Ltd. on 21/10/97 with regards           to bloc
3939 plot 21 in the Rishon Lezion Industrial Zone; additionally, we will           be
provided with an irrevocable directives document to the second party in the
          aforesaid agreement, in a wording acceptable to the bank, to the effect inter
          alia that any amount that is due to you from the aforesaid second party, will
be           paid solely to the credit of your account at the bank.  </FONT></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>

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<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>2.1.6. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
promissory note of the first level, regarding all the monies in account number
          120800/08 that is being managed by Odem Electronic Technologies 1992 Ltd. in
          ranch 671 and all rights to and pertaining to the aforesaid account.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>2.1.7. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
standing guarantee unlimited in amount to secure all your debts and the
          fulfillment of your obligations towards the bank signed by 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=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>2.1.8. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
standing guarantee unlimited in amount to secure all your debts and the
          fulfillment of your obligations to the bank signed by the Dimex 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=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>2.1.9. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
standing guarantee unlimited in amount to secure all your debts and the
          fulfillment of your obligations to the bank signed by the Dimex Hagalil
Projects           (2008) 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=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>



Likewise, the extension of any credit
whatsoever from within the credit framework as well as its continued management will also
be contingent on your signing a documents of covenants towards the bank, that will also
include financial conditions, under the terms and wording attached to this letter and
marked &#147;B&#148;.

</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>2.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Likewise
the extension of any credit whatsoever from within the credit framework           as well
as its continued management will be contingent upon your signing a           document of
subordination towards the bank, under the terms and wording attached           to this
letter and marked &#147;C&#148;. </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>2.4. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All
the aforementioned assets and rights whose pledge/mortgage and/or           endorsement
to the bank are required under this document will be           pledged/mortgaged/endorsed
over when they are free of any lien, attachment or           any other third-party right
whatsoever. </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"><B>3.</B> </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Additional
Conditions for the Extension of Credit:</U></B> </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>
In
addition to the aforesaid, the extension of the credits all or partial and their continued
management will be contingent on the observance of all the following additional
conditions: </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>3.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Immediately
upon our demand all the documents and authorizations that will be           necessary
according to our discretion, will be signed and provided in the           wording that we
find acceptable for the provision of the credits and the           creation of the
guarantees and the obligations detailed above. </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>3.2. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
event whatsoever will take place allowing the bank, on the basis of any
          document that was signed and/or will be signed by you, including and without
          detracting from the generality of the aforesaid above under the directives of
          the agreement general conditions for providing a credit in foreign currency and
          in Israeli currency -as is the bank&#146;s practice &#150; to call for the
          immediate payment of your debts and obligations to the bank all or partially,
          and this irrespective of whether the existence or nonexistence of the
          aforementioned event is dependent upon you or not. </FONT></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>

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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>3.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
change in the bank&#146;s opinion will occur that will prevent, prohibit or
          limit the options of the bank to place the credits, including a change in the
          local or international capital markets, or a change that derives from a demand,
          directive or request that was made or referred by the Bank of Israel or by a
          another competent authority, irrespective of whether the aforementioned
          directive, demand or request will derive from a change in the law or whether it
          derives from an agreement that was made will be made periodically between the
          bank and the Bank of Israel or another competent authority and no legal
          impediment whatsoever will be created in the bank&#146;s opinion to extending
          the credit, all or partially according to any legal directive. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In
this document &#147;legal directive&#148; means &#150; any directive of law or
legislation as well as the directives of the Bank of Israel and any other competent
authority, whether it has legal powers were not, and including agreements between the
Bank of Israel and another competent authority as aforesaid. </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>3.4.</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For
removal of doubt let it be clear that the continued management of the credit           is
subordinate to all the bank&#146;s rights and subject to all your obligations
          under all the documents that were signed and will be signed by you and/or under
          any law and there is nothing in this document to detract, in any manner
          whatsoever from the rights of the bank and/or your obligations under any other
          document that will be signed by you to the bank. </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"><B>4.</B> </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Commissions</U></B> </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>4.1.</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
offer to extend the credit framework under this letter will enter into           effect
if by 30/03/2009 inclusive, you will confirm with your signature at the           bottom
of this letter your agreement to all the conditions detailed above, and           you
will provide us with a copy of this letter as confirmed by you. And you will
          pay us a commission at the rate of 0.75% of the total credit framework as per
          paragraphs 1.1.4 and 1.1.5 above. </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>4.2.</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During
the entire period where the credit framework will be in effect you will           pay us
a commission for non-utilization at a rate of 0.75% per annum which will           be
calculated on the balance of the non-exploited credit framework for           paragraphs
1.1.1 and 1.1.2 above. The examination of the total non-utilized           credit
framework will be performed on a daily basis and the payment of a           commission
will be done retroactively at the end of each calendar quarter. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<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>Your
rights under this document are not subject to transfer or endorsement in           any
form whatsoever to any third party whatsoever. The presentation of this           letter
of ours or any part of it before any other party shall be done only after           the
receipt of prior written consent from us. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[Stamp + Signature:
Odem Electronic Technologies 1992 Ltd] </FONT></H1>

<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="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Bank Leumi &#150;
Dimex Solutions Credit Line Agreement<BR><BR>[Translated from Hebrew] </U> </FONT> </H1>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: 23/3/09 </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To: </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dimex Solutions Ltd.
(hereafter &#147;the Company&#148;) </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Sir or Madam., </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>

As per your request, we hereby inform
you, that we, Bank Leumi Le-Israel Ltd. (hereafter-&#147;<B>the Bank</B>&#148;), are
prepared in principle to place at your disposal credit in N.I.S. up to a total sum that
will not exceed 15,000,000 N.I.S. (fifteen million N.I.S.) (Hereafter-&#147;<B>the credit
framework</B>&#148; or &#147;<B>the credit</B>&#148;) and all subject to the terms
detailed in this document below:-


 </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"><B>1.</B> </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>The
Credit Framework</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<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>1.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
credit framework will be extended according to the following breakdown: </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>1.1.1. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Short-term
credits in a total amount that will not exceed 13,700,000 N.I.S.                (thirteen
million seven hundred thousand N.I.S.), whose final repayment date                shall
occur no later than 31/06/09<B>. &#147;Short-term credits&#148;</B>               means-credits
whose final payment date will occur no later than 12 months from                the date
of their provision.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>1.1.2. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
credit framework for the purpose of issuing bank obligations on behalf of the
               customers, such as issuing bank guarantees etc., in a total aggregate
amount                that will not exceed 300,000 (three hundred thousand N.I.S.),
provided that the                last day for utilizing the credit on account of the
aforementioned credit                framework shall occur no later than 31/06/09.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Any
amount that will not be exploited on account of the credit framework can be exploited as
short-term credit according to the conditions detailed in paragraph 1.1.1 above. </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>1.1.3. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Additional
short-term credits in a total amount that will not exceed 1,000,000                N.I.S.
(one million N.I.S.) (hereafter &#147;<B>the amount</B>&#148;), whose
               final payment date shall occur no later than 31/06/09 will be extended
after the                receipt of an irrevocable directive signed by you to transfer
the amount to                account number 142900/82 in the name of the B.O.S. Better
Online Solutions Ltd.                that is being managed in the Rishon Lezion
Commercial Branch-671.  </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=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>The
currency of the credit and the other conditions of the credit including the
               interest rate for each part and the commission attached to it, will be as
agreed                upon in writing between the bank and yourselves before it is
provided, and if it                will not be agreed it will be as is accepted practice
in the bank regarding                credit of that category, at the time that it is
provided. </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>1.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>



Let it be clear that the credit
framework includes also credits of any category whatsoever that the bank actually extended
to you in any account whatsoever prior to the signing of this document and/or any credit
framework agreed upon between the bank and yourselves prior to the signing of this
document.


 </FONT></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>

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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"><B>2.</B> </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Securities</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<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>2.1. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Let
it be clear that in order to guarantee the full and the punctilious
               repayment of all your debts and obligations all the securities and
guarantees of                every type and category that were provided and/or will be
provided to the bank                by you and/or by any third party whatsoever will be
at the bank&#146;s disposal,                including and without detracting from the
generality of the aforesaid, the                following securities and guarantees: </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>2.1.1. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Promissory
notes, unlimited in amount, pledge documents under which a fixed lien                will
be imposed on your non-released stock capital and goodwill as well as a
               floating lien on all the assets and rights of any category whatsoever,
that you                possess and will possess in the future;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>2.1.2. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Promissory
notes, unlimited in amount, pledge documents under which a fixed lien                will
be imposed on the non-released stock capital and goodwill as well as a
               floating lien on all the assets and rights of any category whatsoever, of
B.O.S                Better Online Solutions Ltd. as well as a floating lien on all
assets and rights                of any type or category whatsoever that B.O.S. Better
Online Solutions Ltd.                possesses or will possess in the future;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>2.1.3. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Promissory
notes, unlimited in amount, and pledge documents via which B.O.S                Better
Online Solutions Ltd. will mortgage its securities in Dimex Solutions                Ltd.
and all the rights on their behalf.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>2.1.4. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At
all times there will be on deposit at your account at Leumi Bank Israel Ltd.
               and mortgaged on behalf of the bank in a first ranking fixed lien, without
any                limit to the amount, checks and notes of customers that are accepted
by the bank                and that would award the bank the right of someone who
lawfully holds them,                whose total amount deposited will not fall below the
amount of 1,000,000 N.I.S.                (one million N.I.S. only) (hereafter &#147;<B>the mortgaged notes</B>&#148;)</FONT></TD>
</TR>
</TABLE>
<BR>

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<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>2.1.5. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
standing guarantee unlimited in amount to secure all your debts and the
          fulfillment of your obligations towards the bank signed by B.O.S. Better Online
          Solutions Ltd.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>2.1.6. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
standing guarantee unlimited in amount to secure all your debts and the
          fulfillment of your obligations to the bank signed by Dimex Hagalil Projects
          (2008) Ltd.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>2.1.7. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
standing guarantee unlimited in amount to guarantee your debts and the
          fulfillment of your obligations to the bank signed by Odem Electronic
          Technologies 1992 Ltd.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>




Likewise, the extension of credit
whatsoever from within the credit framework as well as it continued its continuous
management <U>will also</U> be contingent on your signing a document of covenants towards
the bank, that will also include financial conditions, under the conditions and wording
attached to this letter and marked &#147;A&#148; .


</FONT></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>

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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>2.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Likewise
the extension of any credit whatsoever from within the credit framework           as well
as continuous management <U>will also</U> be contingent upon your           signing a
document of subordination towards the bank, under the terms and           wording
attached to this letter and marked &#147;B&#148;. </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>2.4. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>


[Left blank in the original]



</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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.5. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All
the aforementioned assets and rights whose pledge/mortgage and/or           endorsement
to the bank are required according to this document will be
          pledged/mortgaged/endorsed when they are free of any lien, attachment or any
          other third-party right whatsoever. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>3.</B> </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Additional
Conditions for the Extension of Credit:</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In
addition to the aforesaid, the extension of the credits all or partial and their continued
management will be contingent on the observance of all the following additional
conditions: </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=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>Immediately
upon our demand all the documents and authorizations that will be           necessary
according to our discretion, will be signed and provided in the           wording that we
find acceptable for the provision of the credits and the           creation of the
guarantees and the obligations detailed above. </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=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>No
event whatsoever will take place allowing the bank, on the basis of any
          document that was signed and/or will be signed by you, including and without
          detracting from the generality of the aforesaid above under the directives of
          the General Conditions for Providing Credit In Foreign Currency and in Israeli
          Currency Agreement -as is the bank&#146;s practice -to call for the immediate
          payment of your debts and obligations to the bank, fully or partially, and this
          irrespective of whether the existence or nonexistence of the aforementioned
          event is dependent upon you or not. </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=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>No
change in the bank&#146;s opinion will occur, that will prevent, prohibit or
          limit the options of the bank to place the credits, including a change in the
          local or international capital markets, or a change that derives from a demand,
          directive or request that was made or referred by the Bank of Israel or by a
          another competent authority, irrespective of whether the aforementioned
          directive, demand or request will derive from a change in the law or whether it
          derives from an agreement that was made will be made periodically between the
          bank and the Bank of Israel or another competent authority and no legal
          impediment whatsoever will be created in the bank&#146;s opinion to extending
          the credit, all or partially according to any legal directive. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In
this document &#147;legal directive&#148; means &#150; any directive of law or
legislation as well as the directives of the Bank of Israel and any other competent
authority, whether it has legal powers were not, and including agreements between the
Bank of Israel and another competent authority as aforesaid. </FONT></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>

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<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>3.4.</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>


For removal of doubt let it be clear
that continued management of the credit is subordinate to all the bank&#146;s rights and
subject to all your obligations under all the documents that were signed and will be
signed by you and/or or under any law and there is nothing in this document to detract, in
any manner whatsoever from the rights of the bank and/or your obligations under any other
document that will be signed by you to the bank.


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

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>4.</B> </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Commissions</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<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>4.1.</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
offer to extend the credit framework under this letter will enter into           effect
if by 30/03/2009 inclusive, you will confirm with your signature at the           bottom
of this letter your agreement to all the conditions detailed above, and           you
will provide us with a copy of this letter as confirmed by you. </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.2.</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During
the entire period where the credit framework will be in effect you will           pay us
a commission for non-utilization at a rate of 0.75% per annum which will           be
calculated on the balance of the non-exploited credit framework. The
          examination of the total non-utilized credit framework will be performed on a
          daily basis and the payment of a commission for it will be made retroactively
at           the end of each calendar quarter. </FONT></TD>
</TR>
</TABLE>
<BR>

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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>Your
rights under this document are not subject to transfer or endorsement in           any
form whatsoever to any third party whatsoever. The presentation of this           letter
of ours or any part of it before any other party shall be done only after           the
receipt of prior written consent from us. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Respectfully
yours,<BR><BR>Bank Leumi Le-Israel Ltd. </FONT></TD>
</TR>
</TABLE>
<BR>


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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Stamp
+ Signature: Dimex Solutions Ltd</B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>EBIDTA Covenants Letter<BR><BR>[Translated from Hebrew]</U> </FONT> </H1>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date:  03.03.09</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To: </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bank Leumi Le-Israel Ltd.</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Whereas as one of the conditions for
providing credits, banking services and the receipt of various obligations and guarantees
from us the undersigned Odem Electronic Technologies 1992 Ltd. and/or Dimex Solutions Ltd.
and/or B.O.S. Better Online Solutions Ltd. (hereafter together and separately &#147;<B>the
companies</B>&#148;) you demanded that we should sign for you on this letter and we have
assented to this; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We therefore hereby declare and
obligate ourselves 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"><B>1.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Efficiency
Relations/Operational Relations</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We
agree that the granting of credits and the provision of banking services to the companies
and/or upon their guarantee and their continued management will be on condition that the
ratio of the companies&#146; debt service according to the consolidated financial
statements of the companies &#150; Odem Electronic Technologies 1992 Ltd., Dimex
Solutions Ltd., B.O.S. Better Online Solutions Ltd. only (while neutralizing LYNK USA
INC) &#150;will not fall below 1.  </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>
In
this paragraph the following meanings will be attached to the terms below:  </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>
&#147;<B>Debt
service ratio</B>&#148; means that quotient obtained by dividing the operating profit for
debt service by the amount of debt service.  </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>
&#147;The
operating profit for debt service&#148; (EBITDA) means the cumulative total of operating
profit from ongoing activity, according to the financial statements for recent year,
prior to financing expenditures (interest, linkage differentials, rate of exchange and
currency differentials and commissions) and taxes with the addition of depreciation and
amortization expenses that were entered in the same period.  </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>
(2)
                     With regards to financial statements drawn up under IFRS standards
the                     definition for EBITDA will change and its calculation will <U>not</U> include
                    the clauses detailed below:  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>a.</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Profits/losses
from the reevaluation of real estate for 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>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Profits/losses
deriving from changes in actuarial assumptions that were employed                for the
purpose of estimating worker benefits. </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>c. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Capital
profits/losses. </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>d. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income/expenditure
for the reevaluation of warrants where the exercise price is                linked/ the
conversion component of convertible bonds whose exercise price is                linked. </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>
&#147;<B>Debt
service</B>&#148; means the cumulative total according to the recent annual financial
statements of financing expenses with the addition of payment of current maturities for
long-term loans that the companies were to have paid in the course of the calendar year
to which the reports refer to, while excluding current maturities on payments for the
purchase of the intangible assets of Dimex Systems (1998) Ltd. for which bank credit will
be received in 2009.  </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>
&#147;<B>Financial
statements</B>&#148; mean- profit loss statements and annual cash flow on a consolidated
basis solely of Odem Electronic Technologies 1992 Ltd. Company and Dimex Solutions Ltd.
and B.O.S. Better Online Solutions Ltd. alone (neutralizing Lynk USA, Inc.) prepared
according to generally accepted accountancy principles.  </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>
(Below
together and separately &#147;the companies&#148;)  </FONT></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>

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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>
The
financial yardsticks that were determined in paragraph 1 above (hereafter &#147;<B>the
yardsticks</B>&#148;) are predicated on accountancy standards, rules of accountancy, and
accountancy estimates and policy (hereafter &#147;<B>accountancy treatment</B>&#148;) as
implemented in the recent financial statements accurate to the date of this letter
(hereafter &#147;<B>the recent statements</B>&#148;).  </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>
Accounting
treatment that differs from the one on whose basis the recent reports were prepared
including, but not only, as a result of the implementation of IFRS (International
Financial Reporting Standards) new accountancy standards/others/whatsoever in Israel or
abroad, changes in estimates and/or a change in accountancy policy (all the aforesaid
will be called below together and separately,-&#147;<B>new accountancy treatment</B>&#148;)
can result in changes that will have repercussions on the yardsticks.  </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>
The
companies therefore agree as follows:  </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>
At
any time that the bank should believe, upon its sole discretion, that changes were caused
and/or are about to be caused in the company&#146;s financial reports, due to new
accountancy treatment, it will be entitled, after consultation with the company but
without requiring its consent, to inform the company what are the modifications that it
requires in the yardsticks (hereafter &#147;<B>the amended yardsticks</B>&#148;) in order
to adjust them to the aforesaid changes, and this with a view to modifying them to suit
the original economic purpose based on which the yardsticks were determined.  </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
the bank informed the company what are the amended yardsticks &#150; they will bind the
company commencing with the date that the bank gave notification and they will view this
document as if it incorporates the amended yardsticks, beginning with the date that the
bank gave notice.  </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"><B>2.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>An
Obligation to Provide Financial Reports</U></B> </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>
We
obligate ourselves to provide you no later than the date of 31.03 of each year the annual
consolidated financial reports as per their aforesaid definition; audited by an external
certified accountant and referring to 31.12 of the previous year.  </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>
Likewise
we obligate ourselves to provide you no later than 60 days from the end of every quarter,
quarterly financial reports as per their aforesaid definition signed by the CEO and
Deputy CEO for Finances of the company.  </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"><B>3.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>An
Obligation to Provide Additional Reports</U></B> </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>
We
obligate ourselves to provide you a copy of any authorization, notification report or any
other document that we must turn over to the registrar of companies and/or to the Israel
Securities Authority under any law, and this concomitantly with its provision to the
registrar of companies and/or to the Securities Authority as aforesaid.  </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"><B>4.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>The
Validity of These Obligations</U></B> </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>
Our
aforesaid obligations will be in force as long as any amounts are due or will be due to
you from us on account of loans, credits and/or other banking services, that you provided
or will provide us in the future, and/or as long as the various obligations and
guarantees of the company towards a bank or on its behalf will remain in effect.  </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>
In
any case where we have failed to meet the financial yardsticks, all or some of them, or
if we should violate any of our other obligations detailed in this aforementioned letter,
all or some of them, then in addition to any other relief that you will be entitled to by
any law or as a result of any other obligation towards you that are included or that will
be included in any document whatsoever -you will be entitled to call for the immediate
payment of all or part of our debts and obligations towards you, and collect them from us
with the addition of any amount that in the bank&#146;s opinion will suffice to cover the
losses and/or the expenses that the bank will incur due to the aforesaid call for
immediate payment.  </FONT></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>

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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>
Let
it be clear that if the bank did not initiate proceedings due to the violation of a
previous obligation or a failure to meet one or more of the obligations towards the bank,
whether that obligation is included in this letter or is included or will be included in
any other document, this will not be considered an abandonment or a waiver by the bank of
its rights and/or as a justification or an excuse for the continued existence of the
violation and/or the existence of any other violation or to further nonobservance of any
condition or any obligation on our part as aforesaid.  </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>
To
avoid any doubt there is nothing in the aforesaid to detract from our obligations to you
on the basis of any document whatsoever and/or any law, and there is nothing to detract
from any grounds for demanding immediate payment that is available and/or will be
available to you under any document whatsoever and/or any law.  </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>Respectfully yours,<BR><BR>
<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
(Signed) Odem Electronic Technologies 1992 Ltd.</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
(Signed) Dimex Solutions Ltd.</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
(Signed) B.O.S. Better Online Solutions Ltd.</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></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>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Tangible Equity Capital
Covenants Letter<BR><BR>[Translated from Hebrew] </B></U> </FONT> </P>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date 23/3/09 </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>To
</B><BR><B>

Bank Leumi Le-Israel (&#147;the Bank&#148;)


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Whereas you have placed and/or will
place, as you should deem proper, loans, credits and/or other banking services at the
disposal of B.O.S. Better Online Solutions Ltd., Dimex Solutions Ltd. Company and/or Odem
Electronic Technologies 1992 Ltd., under terms and in amounts as agreed upon or will be
agreed upon periodically between us; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And whereas you have received and/or
will receive various obligations and guarantees to you or on your behalf from us; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And whereas as one of the conditions for
the granting of the loans, the credits and/or the aforementioned banking services and the
receipt of the various obligations and guarantees, you have demanded that we should sign
on this document for you and we have assented to this; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We therefore hereby declare and
obligate ourselves 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"><B>1.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>An
Obligation to Preserve Tangible Equity Capital</U></B> </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>1.1.</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">We
obligate ourselves that the tangible equity capital of the B.O.S. Better Online
Solutions Ltd. (hereafter &#147;<B>the company</B>&#148;), as defined below, will not
be lower at any time whatsoever commencing with the date of 31.12.08 than a 19%
proportion of the company&#146;s total balance on a consolidated basis. </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>1.2.</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Likewise
the tangible equity capital of the company will not be lower in each of           the
calendar years detailed in the table below, from the amount noted in the           table
below alongside each relevant year: </FONT></TD>
</TR>
</TABLE>
<BR>





<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="450" ALIGN="Center">
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1>Year</FONT><HR WIDTH=95% SIZE=1 COLOR=black NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>The amount of tangible equity capital<BR>
required in millions of USD</FONT><HR WIDTH=95% SIZE=1 COLOR=black NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#cceeff">
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>2008</FONT></TD>
     <TD WIDTH="80%" ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>7.1</FONT></TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>2009</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>7.4</FONT></TD>
     </TR>
<TR VALIGN="BOTTOM" BGCOLOR="#cceeff">
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>2010</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>7.9</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>1.3. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commencing
with the year 2011 the company&#146;s tangible equity capital will                grow by
0.5 million USD every year, so that in the year 2011 the company&#146;s
               tangible equity capital will not be lower than the amount of 8.4 million
NIS, in                2012 the tangible equity capital of the company will not be lower
than the                amount of 8.9 NIS million, and in 2013 the company&#146;s equity
capital will                not be lower than the amount of 9.4 NIS million etc. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
All
this data should appear in the company&#146;s biannual and annual financial reports
detailed below on a consolidated basis, when the biannual reports will have to
demonstrate that this target has been met at least in relation to the previous year. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;Tangible
equity capital&#148; means-equity capital as presented in the financial statements,
including, paid-up stock capital, non-distributed surpluses, funds, with the addition of
the balance of the amounts of the shareholders&#146; loan funds regarding which documents
of subordination were signed towards the bank, by the company and shareholders and while
deducting non-tangible assets such as: goodwill, patents, trademarks, brand names,
copyrights etc. and deducting those liable to the company who are interested parties
and/or subsidiaries and/or companies related to the company (as the aforementioned terms
are defined in the Securities Law, 5728-1968) as well as deducting guarantees that were
given by the company and/or by Dimex Solutions Ltd. and/or Odem Electronic Technologies
1992 Ltd. to secure the debts of interested parties and/or subsidiaries and/or companies
related to the company, except for guarantees that were given by any one of the
aforementioned companies on in favor of Leumi Bank to secure the debts of the
subsidiaries or their related companies. </FONT></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>

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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Despite
the aforesaid it is hereby clarified, that goodwill and other non-tangible assets that
belong to the Dimex Solutions Ltd. and/or are registered in its name, and are detailed in
the enclosed document marked &#147;A&#148;, will not be deducted from the company&#146;s
tangible equity capital. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
With
regards to financial statements drawn up according to IFRS standards the definition of
equity capital will change in accordance with what is detailed below: </FONT></TD>
</TR>
</TABLE>
<BR>

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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>Minority
rights that appear in the framework of equity capital (with regards to
               consolidated statements) will not be included in the framework of equity
               capital.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>b. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Equity
capital will also include the exchange component for option warrants when
               the exercise money for them is linked (they will appear in the framework
of                liabilities).  </FONT></TD>
</TR>
</TABLE>
<BR>

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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>c. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Equity
capital also includes the conversion component for convertible bonds                whose
exercise price is linked (in the event that they should appear separately
               within the framework of liabilities in the balance).  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>d. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
revaluation fund will not be incorporated for fixed assets that were created
               due to the adoption of a revaluation model in the period following the
               formulation of the financial conditions.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
financial yardsticks that were determined in paragraph 1 above (hereafter &#147;<B>the
</B><B>yardsticks</B>&#148; are based on accounting standards, accounting rules,
estimates and accounting policy (hereafter &#147;<B>accountancy treatment</B>&#148;) as
implemented in the company&#146;s recent financial statements, accurate to the date of
this document (hereafter &#147;<B>the recent </B><B>statements</B>&#148;). </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Accountancy
treatment that differs from the one on whose basis the recent reports were prepared
including, but not merely, as a result of the implementation of &#147;IFRS&#148;-
(International Financial Reporting Standards), new accountancy
standards/others/whatsoever in Israel or abroad, changes in estimates and/or a change in
accountancy policy (all the aforesaid will be termed below together and separately,-&#147;<B>new
accountancy treatment</B>&#148;) can result in changes that will exert repercussions on
the yardsticks. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Therefore
the company agrees as follows:  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
At
any time that the bank should believe, upon its sole discretion, that changes were caused
and/or are about to be caused to the company&#146;s financial statements, due to new
accountancy treatment, it will be entitled, after consultation with the company but
without requiring its consent, to inform the company what are the changes that it
requires in the yardsticks (hereafter &#147;<B>the amended yardsticks</B>&#148;) in order
to adjust them to the aforesaid changes, and this with a view to adjusting them to
achieve the original economic purpose based on which the yardsticks were set. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
If
the bank informed the company what <B>the amended yardsticks</B> are &#150; they will
bind the company beginning with the date that the bank gave notification and this
document should be viewed as incorporating the amended yardsticks, commencing with the
date that the bank gave notice. </FONT></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>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>2.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>An
Obligation Not to Change Control in the Company</B></U> <BR><BR>We obligate
ourselves that no change in control of the company will occur as opposed
to the situation on the day that this document was signed, save by prior
written consent of the bank. </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>
&#147;Control&#148;for
the purpose of the aforesaid will be as the term is defined in the Securities Law
5728-1968.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>3.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>An
Obligation not to Perform a Merger</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<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>a. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We obligate ourselves not to perform, not to obligate ourselves to perform           and
not to adopt any procedure whatsoever to perform a merger with another
          corporation/s without obtaining the bank&#146;s prior written consent. For this
          purpose we obligate ourselves to immediately turn over to the bank any
          information or documents, required by the bank, at its discretion, so it can
          formulate its position regarding the merger. </FONT></TD>
</TR>
</TABLE>
<BR>

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<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>b. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This
aforesaid obligation in this paragraph above applies both to a merger
               according to the 8th part or according to the 9th part of the Companies
Law,                5759-1999 as well as with regards to any activity that will result in
the                purchase of the bulk of the company&#146;s assets by a person or
another                corporation or any activity that as result of which company
securities are                purchased thus awarding the purchaser control of the
company or any activity                that results in the company purchasing, directly
or indirectly, the bulk of the                assets of another corporation or the
securities of a another corporation that                would award it control in that
corporation. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
For
the purpose of this paragraph, the term &#147;control&#148;-is as defined in the
Securities Law, 5728-1968. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>4.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>An
Obligation to Provide Financial Statements</U></B> </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>
We
obligate ourselves to provide you no later than the date of 31.03 of each year the company&#146;s
financial statements, on a consolidated basis as well as that of the company alone; that
comprise inter alia a balance, a profit statement, cash flow and any other report that
will be required by the competent authorities, (below &#147;<B>financial reports</B>&#148;),
audited by an external certified accountant and referring to 31.12 of the previous year.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Likewise
we obligate ourselves to provide you no later than 60 days from the end of every quarter,
quarterly financial reports of the company on a consolidated basis.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>5.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>An
Obligation to Provide Additional Reports</U></B> </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>
We
obligate ourselves to provide you a copy of any authorization, notification report or any
other document that we must turn over to the registrar of companies and/or to the Israel
Securities Authority under any law, and this concomitantly with its provision to the
registrar of companies and/or to the Securities Authority as aforesaid.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>6.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>An
Obligation Not to Issue Bearer Securities</U></B> </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>
We
obligate ourselves not to issue bearer securities, without the prior written consent of
the bank.  </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>
We
declare that as of the date of the signing of this document no bearer securities were
issued by the company.  </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>
To
avoid any doubt let it be clear that this paragraph does not refer to shares of B.O.S.
Better Online Solutions Ltd. that will be registered for trade on the stock exchange at
the time of their issuance.  </FONT></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>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>7.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>The
Validity of These Obligations</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Our
aforesaid obligations will remain in force as long as any amounts are due or will be due
to you from us on account of loans, credits and/or other banking services that you
provided and/or will provide us in the future and/or as long as the obligations and
guarantees towards you or on your behalf will remain in effect.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In
any event that you should inform us that one of our aforesaid obligations was violated,
completely or partially, then in addition to any other relief that you will be entitled
to by law or by any other of our obligations towards you that are included or will be
included in any document whatsoever-then you will be entitled to call for immediate
payment of all or part of our debts and obligations towards you, and collect them from us
with the addition of any amount that in the bank&#146;s opinion will suffice to cover the
losses and/or expenses that the bank will incur due to the aforesaid call for immediate
payment.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
To
remove any doubt there is nothing in the aforesaid to detract from our obligations
towards you on the basis of any document whatsoever and/or any law, and there is nothing
in the aforesaid to detract from any grounds for demanding immediate payment that is
available and/or will it be available to you under any document whatsoever and/or any
law.  </FONT></TD>
</TR>
</TABLE>
<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>Respectfully yours,<BR><BR>
<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>[Signed]</FONT></TD>
<TD WIDTH="45%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></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>

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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U><B>Form
of Subordination Letters of Dimex Solutions and Odem  Electronic Technologies 1992 Ltd.</B></U> </FONT></TD>
</TR>
</TABLE>
<BR>


<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>[Translated from Hebrew]</U></B> </FONT> </P>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;A&#148; </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Letter of Subordination
and Additional Obligations for the Signature of Shareholders and Holders of Controlling Interest</U> </FONT> </H1>

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<P ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To: </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Bank Leumi Le-Israel Ltd.</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>


Whereas Bank Leumi Le-Israel Ltd.
(&#147;<B>the bank</B>&#148;) has granted or agrees to allocate to &#147;the Company&#148;
periodically as the bank deems fit, credits and/or other banking services in amounts and
under the terms agreed upon or that will be agreed upon between the bank and the company;


 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And whereas the bank received and/or
will receive from the company various obligations and guarantees towards the bank or on
its behalf; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And whereas as one of the conditions
for providing the aforementioned credits and/or other banking services the bank demanded
that we should sign on this letter and we have assented to this; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Therefore, we the undersigned,
shareholders in the company and/or holders of controlling interest in the company, all of
us together and each one of us separately, declare and obligate ourselves towards you, in
our name and in the name of the companies under our control and in the name of the members
of our family, as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the purpose of the aforesaid in
this letter the following meanings will be attached to the terms below: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;<B>Corporations under our
control</B>&#148;- any company and any other corporation under our control or under the
control of any of us. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;<B>Control&#148;, &#147;family
member</B>&#148;-as defined in the Securities Law 5728 &#150; 1968 as will be valid from
time to time. </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>We,
corporations under our control, as well as members of our family, will not
               demand, will not receive, will not collect, will not expend, directly or
               indirectly or in any form or manner whatsoever, any amount whatsoever from
or on                account of capital notes that the company has issued and/or will
issue on our                behalf and/or on behalf of any of us and/or from or on
account of loans that                were given and/or will be given the company,
including payments of principal,                interest, commissions and expenses (all
the aforementioned amounts will be                termed below &#147;<B>the loans</B>&#148;). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<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>
Likewise,
we obligate ourselves that we, the corporations under control, as well as our family
members, will not demand, will not receive, will not collect, will not expend from the
company (from its profits, from its capital or from any source whatsoever) either
directly or indirectly, in any form or manner whatsoever, dividends (as per their
definition in the Companies Law 5759-1999 as may be amended from time to time) or
interest or management fees or indemnification fees or compensation fees or consultancy
fees or amounts of money or monetary equivalents (these amounts will be termed below
&#147;<B>dividends</B>&#148;) and we shall not demand and shall not request from the
company an obligation to distribute the aforesaid dividends.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<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>
Likewise
we will not transfer to another/others either directly or indirectly, all or any part of
our rights, existing and future, to the company for the dividends and/or the loans,
without the prior written consent of the bank.  </FONT></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 Flush Lv 1-TNR" FSL="Workstation" -->
<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>
Likewise
let it be clear that there is nothing in the aforesaid and/or below, as long as no event
has occurred awarding the bank the right to put up our obligations towards the bank for
immediate collection, to prevent the transfer of monies between the company and the
B.O.S. Better Online Solutions Ltd. (hereafter &#147;B.O.S.&#148;) for B.O.S.&#146; share
in the expenses of Dimex Solutions Ltd. up to a total amount that will not exceed
$800,000 (eight hundred thousand USD) per calendar year and this exclusively on the basis
of expenses detailed in the list attached as Appendix C&#146; that constitutes an
integral part of this letter, and this on condition that there is nothing in the
aforementioned transfer of funds that constitutes a violation of any other obligation
whatsoever of Dimex Solutions Ltd. under any document whatsoever that it signs including
and without detracting from the generality of the aforesaid, the document of conditions
that it signed on ____ in favor of the bank, and subject to the directives of the
Companies Law and the law.  </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=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>Without
detracting from the aforesaid, in the event that any of us, and/or the
               corporations under our control and/or members of our family and/or others
as                aforesaid, shall receive from the company any amount whatsoever on
account or                with relation to the loans or the dividends, then we will
transfer to the bank                any such amount immediately once it has been received
by any of us as aforesaid.                The bank will be entitled to credit, as it sees
fit any amount that it should                receive as aforesaid, for repayment on
account of the amounts that are due                and/or will be due to the bank from
the company in any manner whatsoever. </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=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>We
obligate ourselves to provide you an obligation by the company to act in
               accordance with our obligations towards you as detailed in this letter, in
the                wording enclosed and marked &#147;B&#148;. </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=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
bank&#146;s ledgers and accounts will serve as ostensive proof with regards
               to the company&#146;s liabilities to the bank. </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=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
aforesaid in this letter will obligate all the undersigned, even if some of
               the shareholders in the company or holders of controlling interests have
not                signed on it. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR"  -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our aforesaid obligations will be in
force as long as the bank receives or will receive from the company, amounts whatsoever on
account of the loans, credits and/or other banking services, that exist today and/or will
exist the future, and/or as long as the various obligations and guarantees of the company
towards the bank or on its behalf will remain in force. </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>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;B&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Letter of Subordination
and Additional Obligations for the Company&#146;s Signature</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To: </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Bank Leumi Le-Israel Ltd.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Whereas periodically, as per our
request, if the matter should meet with your approval, you consent to provide or allocate
to us, the undersigned corporation (&#147;<B>the company</B>&#148;), credits and/or other
banking services, under conditions and in amounts as agreed or will be agreed periodically
between us; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And whereas you have received and/or
will receive from us various obligations and guarantees towards you or on your behalf; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And whereas as one of the conditions for
the aforementioned grant of credits and/or the banking services and for the receipt of the
various obligations and guarantees, you have demanded that we sign on this letter and we
have assented to this; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And whereas our stockholders (or some
of them) and our holders of controlling interest (or some of them) obligated themselves
towards you in a letter in the wording enclosed and marked &#147;A.&#148;; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>We therefore declare and obligate
ourselves hereby as follows:</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the purpose of what is stated in this
letter the following meanings will be attached to the terms below: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&#147;Corporations under the
control of the shareholders</B>&#148; &#150; any company or other corporation that is at
the time of the signing of this letter or that in the future will be under the control of
any of the shareholders or any of the holders of controlling interests among us that
obligate themselves toward you in the text marked &#147;A.&#148;. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&#147;Subsidiary company&#148;,
&#147;control&#148; &#147;family member&#148; &#147;stakeholder</B>&#148; &#150; as per
their definition in the Securities Law 5728- 1968 as will be valid from time to time. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;<B>The shares of the
company</B>&#148; includes also securities that can be converted into company shares as
well as securities that can be realized via shares in the company. </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>We
shall not pay in any form or manner whatsoever, either directly or
               indirectly, to any of our stockholders or any of the holders of
controlling                interest among us who obligated themselves towards you as
aforesaid, and/or to a                family member of any of them and/or to corporations
under the control of any of                them and/or to another third party who will
supplant them or act on their                behalf, any amount whatsoever from or on
account of the capital notes that the                company issued and/or will issue to
your benefit and/or from any other loan                account that was placed and/or
will be placed at our disposal by any of the                aforementioned, or in
connection with them, including, but without detracting                from the
generality of the aforesaid, payment of principal, interest,                commissions
and expenses (all the aforementioned amounts will be termed below                &#147;<B>the
loans</B>&#148;); all this unless we have received your prior                agreement in
writing. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<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>
Likewise
we will not pay and we will not obligate to pay in any form or manner whatsoever either
directly or indirectly, from the company (from its profit or its capital or from any
source whatsoever) dividends (as defined in the Companies Law 5759-1999 as may be amended
from time to time) or interest or management fees or indemnification fees or compensation
fees or consultancy fees or amounts of money or monetary equivalents (these amounts will
be called below &#147;<B>dividends</B>&#148;) to our shareholders or to the holders of
controlling interest among us, irrespective of whether they obligated themselves towards
you according to the wording marked &#147;A&#148; and/or they did not obligate towards
you in the wording marked &#147;A&#148;, and/or to a family member of any of them, and/or
to companies or corporations where one of our shareholders is a stakeholder in them
and/or to any third party whatsoever who shall replace any of the aforesaid or act on his
behalf.  </FONT></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 Flush Lv 1-TNR" FSL="Workstation" -->
<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>
Likewise
let it be clear that there is nothing in the aforesaid and/or below, as long as no event
has occurred awarding the bank the right to put up our obligations towards the bank for
immediate collection, to prevent the transfer of monies between the company and the
B.O.S. Better Online Solutions Ltd. (hereafter &#147;B.O.S.&#148;) for B.O.S.&#146; share
in the expenses of Dimex Solutions Ltd. up to a total amount that will not exceed
$800,000 (eight hundred thousand USD) per calendar year and this exclusively on the basis
of expenses detailed in the list attached as Appendix C&#146; that constitutes an
integral part of this letter, and this on condition that there is nothing in the
aforementioned transfer of funds that constitutes a violation of any other obligation
whatsoever of Dimex Solutions Ltd. under any document whatsoever that it signs including
and without detracting from the generality of the aforesaid, the document of conditions
that it signed on in favor of the bank on ____, and subject to the directives of the
Companies Law and the law.  </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=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>Should
any demand whatsoever be made for any payment whatsoever on account of                the
amounts of the loans or dividends or with reference to them, on the part of
               our shareholders and/or on the part of any other party from the aforesaid,
we                will inform you of this immediately and upon your request we will
coordinate                with you actions to cancel the demand for payment. </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=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
company obligates itself not to purchase, not to provide financing for the
               purchase and not to obligate itself to purchase or to provide financing
for the                purchase of company securities, in any form or manner whatsoever
including and                without detracting from the generality of the aforesaid by
providing guarantees,                either directly or indirectly, by the company or by
its subsidiary company or by                an another corporation under its control,
without receiving the prior written                consent of the bank. </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=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>Purely
for the sake of removing doubt, let it be clear that if for any reason
               whatsoever, we should violate the obligations under this letter, all or
some of                them, then in addition to any other relief that you will be
entitled to under                any law or as a result of any other obligation towards
you included or that will                be included in another document-you will be
entitled to call for the immediate                payment of all or part of the amounts
that are due to you or will be due to you                from us, directly and/or
indirectly at that time, whether their payment date has                arrived by that
time or not, and collect them from us with the addition of any                amount that
in your opinion will suffice to cover the losses and/or the expenses                that
you will incur as a result of a call for immediate payment as aforesaid. </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=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>Our
aforesaid obligations shall remain in force as long as the bank receives or
               will receive from the company, any amounts whatsoever on account of the
loans,                credits and/or other banking services, that exist today or will
exist the                future, and/or as long as the various obligations and guarantees
of the company                towards the bank or on its behalf will remain valid. </FONT></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="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>B.O.S Better Online
Solutions Ltd. Subordination Letter</U></B> </FONT> </H1>




<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>[Translated from
Hebrew]</U></B> </FONT> </H1>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Letter of Subordination and
Additional Obligations for the Company&#146;s Signature</U></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN="Right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: March 9, 2008 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To: </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bank Leumi Le-Israel Ltd. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Whereas periodically, as per our
request, if the matter should meet with your approval, you consent to provide or allocate
to us, the undersigned corporation (&#147;<B>the company</B>&#148;), credits and/or other
banking services, under conditions and in amounts as agreed or will be agreed periodically
between us; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And whereas you have received and/or
will receive from us various obligations and guarantees towards you or on your behalf; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And whereas as one of the conditions for
the aforementioned grant of credits and/or the banking services and for the receipt of the
various obligations and guarantees, you have demanded that we sign on this letter and we
have assented to this; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>We therefore declare and obligate
ourselves hereby as follows:</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the purpose of what is stated in this
letter the following meanings will be attached to the terms below: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&#147;Corporations under the
control of the shareholders</B>&#148; &#150; any company or other corporation that is at
the time of the signing of this letter or that in the future will be under the control of
any of the shareholders or any of the holders of controlling interests in the Company.

 </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&#147;Subsidiary company&#148;,
&#147;control&#148; &#147;family member&#148; &#147;stakeholder</B>&#148; &#150; as per
their definition in the Securities Law 5728- 1968 as will be valid from time to time. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;<B>The shares of the
company</B>&#148; includes also securities that can be converted into company shares as
well as securities that can be realized via shares in the company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) 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>
          We shall not pay in any form or manner whatsoever, either directly or
          indirectly, to any of our stockholders or any of the holders of controlling
          interest among us who obligated themselves towards you as aforesaid, and/or to a
          family member of any of them and/or to corporations under the control of any of
          them and/or to another third party who will supplant them or act on their
          behalf, any amount whatsoever from or on account of the capital notes that the
          company issued and/or will issue to your benefit and/or from any other loan
          account that was placed and/or will be placed at our disposal by any of the
          aforementioned, or in connection with them, including, but without detracting
          from the generality of the aforesaid, payment of principal, interest,
          commissions and expenses (all the aforementioned amounts will be termed below
          &#147;<B>the loans</B>&#148;); all this unless we have received your prior
          agreement in writing. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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


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<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Likewise
we will not pay and we will not obligate to pay in any form or manner whatsoever either
directly or indirectly, from the company (from its profit or its capital or from any
source whatsoever) dividends (as defined in the Companies Law 5759-1999 as may be amended
from time to time) or interest or management fees or indemnification fees or compensation
fees or consultancy fees or amounts of money or monetary equivalents (these amounts will
be called below &#147;<B>dividends</B>&#148;) to our shareholders or to the holders of
controlling interest among us, irrespective of whether they obligated themselves towards
you according to the wording marked &#147;A&#148; and/or they did not obligate towards
you in the wording marked &#147;A&#148;, and/or to a family member of any of them, and/or
to companies or corporations where one of our shareholders is a stakeholder in them
and/or to any third party whatsoever who shall replace any of the aforesaid or act on his
behalf.  </FONT></TD>
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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>Should
any demand whatsoever be made for any payment whatsoever on account of                the
amounts of the loans or dividends or with reference to them, on the part of
               our shareholders and/or on the part of any other party from the aforesaid,
we                will inform you of this immediately and upon your request we will
coordinate                with you actions to cancel the demand for payment. </FONT></TD>
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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
company obligates itself not to purchase, not to provide financing for the
               purchase and not to obligate itself to purchase or to provide financing
for the                purchase of company securities, in any form or manner whatsoever
including and                without detracting from the generality of the aforesaid by
providing guarantees,                either directly or indirectly, by the company or by
its subsidiary company or by                an another corporation under its control,
without receiving the prior written                consent of the bank. </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>Purely
for the sake of removing doubt, let it be clear that if for any reason
               whatsoever, we should violate the obligations under this letter, all or
some of                them, then in addition to any other relief that you will be
entitled to under                any law or as a result of any other obligation towards
you included or that will                be included in another document-you will be
entitled to call for the immediate                payment of all or part of the amounts
that are due to you or will be due to you                from us, directly and/or
indirectly at that time, whether their payment date has                arrived by that
time or not, and collect them from us with the addition of any                amount that
in your opinion will suffice to cover the losses and/or the expenses                that
you will incur as a result of a call for immediate payment as aforesaid. </FONT></TD>
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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>It
is hereby clarified, that the aforementioned will not prevent the Company
               from making: (a) payments to Cukierman &amp; Co. Investment House Ltd.
               (&#147;<B>Cukierman</B>&#148;) derived from&nbsp;the agreement dated&nbsp;April
               15, 2003, attached&nbsp;hereto and which constitutes a part of
               this&nbsp;document and/or (b) payments to&nbsp;shareholders&nbsp;or to
               corporations in their control with respect to commissions due
               to&nbsp;raising&nbsp;of funds for the Company through debentures or
               shares,&nbsp;upto a threshold of 10% of the funds raised. </FONT></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our aforesaid obligations shall
remain in force as long as the bank receives or will receive from the company, any amounts
whatsoever on account of the loans, credits and/or other banking services, that exist
today or will exist the future, and/or as long as the various obligations and guarantees
of the company towards the bank or on its behalf will remain valid. </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>[Stamp
+ Signatures: B.O.S Better Online Solutions Ltd.]</B> </FONT></P>






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<TYPE>EX-23.2
<SEQUENCE>6
<FILENAME>exhibit_23-2.htm
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     <!-- Control Number: 96736                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3/A                                                            -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
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<P ALIGN="Right"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Exhibit 23.2</U></B> </FONT> </P>



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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/A
dated May 11, 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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     <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"><U>/s/ KOST, FORER GABBAY &amp; KASIERER</U> </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>May 11, 2009</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>A Member of Ernst &amp; Young Global</FONT></TD></TR>
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<DOCUMENT>
<TYPE>EX-23.3
<SEQUENCE>7
<FILENAME>exhibit_23-3.htm
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     <!-- Control Number: 96736                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    BOS better online solutions Ltd                                  -->
     <!-- Project Name:   F-3/A                                                            -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
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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>



<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 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=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"><U>/s/ ARIK ESHEL, CPA &amp; ASSOC., PC</U> </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>ARIK ESHEL, CPA &amp; ASSOC., PC</FONT></TD></TR>
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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>May 11, 2009 </FONT></P>


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<DOCUMENT>
<TYPE>EX-23.4
<SEQUENCE>8
<FILENAME>exhibit_23-4.htm
<TEXT>

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     <!-- Control Number: 96736                                                            -->
     <!-- 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"><B><U>Exhibit 23.4</U></B> </FONT> </H1>

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<P ALIGN="Right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>May 11, 2009 </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Consent of Expert</U></B> </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 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="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Variance Economic
Consulting Ltd. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By: <U>/s/ Variance Economic
Consulting Ltd.</U> </FONT> </P>



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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Name: Ram Levy, CPA<BR>Title: Manager </FONT></P>


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