<SEC-DOCUMENT>0001213900-15-006029.txt : 20150813
<SEC-HEADER>0001213900-15-006029.hdr.sgml : 20150813
<ACCEPTANCE-DATETIME>20150813133307
ACCESSION NUMBER:		0001213900-15-006029
CONFORMED SUBMISSION TYPE:	F-3/A
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20150813
DATE AS OF CHANGE:		20150813

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:	333-205572
		FILM NUMBER:		151049906

	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>ff32015a1_bosbetteronline.htm
<DESCRIPTION>AMENDMENT TO FORM F-3
<TEXT>
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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0; font: 10pt Times New Roman, Times, Serif; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> As
filed with the Securities and Exchange Commission on August 13, 2015 </FONT></P>

<P STYLE="margin: 0; padding: 0; text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Registration
No. ________</FONT></P>

<P STYLE="margin: 0; padding: 0; text-align: right; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin: 0; padding: 0; text-align: right; font: 10pt Times New Roman, Times, Serif"></P>



<P STYLE="margin: 0; padding: 0; text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="font: bold 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-size: 10pt"><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif"><B>united states</B></FONT></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-transform: uppercase; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SECURiTIES
AND EXChANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Washington,
D.C. 20549</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center"><A NAME="a_cp_text_1_1"></A><B> AMENDMENT
NO. 1 </B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><B> TO </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>FORM
F-3</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">REGISTRATION
STATEMENT</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">UNDER
THE SECURITIES ACT OF 1933</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>B.O.S
BETTER ONLINE SOLUTIONS LTD.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>(Exact
name of Registrant as specified in its charter)</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 49%; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; font: bold 10pt Times New Roman, Times, Serif; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Israel</B></FONT></TD>
    <TD STYLE="width: 2%; padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="width: 49%; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; font: bold 10pt Times New Roman, Times, Serif; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Not
    Applicable</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; font: bold 10pt Times New Roman, Times, Serif; text-align: center; text-indent: 0"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"><I>(State
    or other jurisdiction of </I></FONT><FONT STYLE="font-size: 10pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; font-variant: normal"><I>incorporation or organization)</I></FONT></FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: bold 10pt Times New Roman, Times, Serif; text-align: center; text-indent: 0"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"><I>(I.R.S.
    Employer</I></FONT><FONT STYLE="font-size: 10pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal"><I>Identification No.)</I></FONT></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">20
Freiman Street </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rishon
LeZion, 75100, Israel</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(+972)
3-954-1000</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>(Address
and Telephone Number of Registrant's principal executive offices)</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">B.O.S
Better Online Solutions Ltd.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">c/o
Ruby-tech, Inc.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">147-20
184th St.,</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Jamaica
NY 11413, USA.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">508-655-2312</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>(Name,
address and telephone number of agent for service)</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Copies
To:</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 49%; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Brian
                                         Brodrick, Esq. </B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Phillips
        Nizer LLP </B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>666
        Fifth Avenue </B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>New
        York, New York 10103 </B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(212)
        841-0700 </B></FONT></P></TD>
    <TD STYLE="width: 51%; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: bold 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Shlomo
                                         Landress, Adv.</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Amit,
        Pollak, Matalon &amp; Co. </B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>NITSBA
        Tower, 17 Yitzhak Sadeh Street</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Tel
        Aviv 67775, Israel </B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>972-3-568-9000</B></FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Approximate
date of commencement of proposed sale to the public</B>: From time to time after this registration statement becomes effective.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please
check the following box. &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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. &#9746;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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. &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.&nbsp;&nbsp;&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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. &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 18pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify"></P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 100%; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>THE
    INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED.&nbsp;&nbsp;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></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Preliminary
Prospectus</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> subject
to completion, dated August 13, 2015 </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">609,813
Ordinary Shares Offered by Selling Shareholders</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>B.O.S
BETTER ONLINE SOLUTIONS LTD.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 40pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> This
prospectus relates to the resale of up to 407,039 of our Ordinary Shares by YA Global Master SPV Ltd., or YA Global, that are
issuable pursuant to a Standby Equity Distribution Agreement, dated as of February 3, 2014 (the 2014 SEDA). Under the 2014 SEDA,
we have the right to sell Ordinary Shares to YA Global for a total purchase price of up to $2,000,000, at our sole discretion,
at 95% of the market price at the time of such issuance, determined in accordance with the terms of the 2014 SEDA. </FONT> <A NAME="a_cp_text_1_24"></A>YA
Global's obligations under the 2014 SEDA are not transferable. </P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 40pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
previously sold 290,214 Ordinary Shares to YA Global, under the 2014 SEDA, for $998,684 pursuant to a resale registration statement
on Form F-3 filed on February 13, 2014 (File No. 333-193927). The registration statement of which this prospectus forms a part
covers the remaining $1,001,316 of Ordinary Shares that we may sell to YA under the 2014 SEDA.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt; color: #1F497D"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> The closing market price of our Ordinary
Shares as of <A NAME="a_cp_text_1_26"></A>August 11, 2015 was $<A NAME="a_cp_text_1_28"></A>2.18. Assuming this is the price per
share used as a basis for the calculations for all draw downs under the 2014 SEDA, we would be able to sell the full 407,039 Ordinary
Shares to YA Global, and receive gross proceeds of approximately $<A NAME="a_cp_text_1_30"></A>887,000, in total. </P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
the event that the number of Ordinary Shares that we have registered under this registration statement for sale by YA Global after
purchase by YA Global under the 2014 SEDA results in proceeds to us of less than $1,001,316 under the 2014 SEDA, we will need
to file one or more additional registration statements covering additional shares to make up the shortfall before we can sell
such additional shares to YA Global under the SEDA.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> As of June <A NAME="a_cp_text_1_32"></A>30,
2015, the aggregate market value of our outstanding Ordinary Shares held by non-affiliates was $<A NAME="a_cp_text_1_34"></A>5,037,832,
based&nbsp;on 2,080,317 outstanding Ordinary Shares, of which 1,945,109 were held by non-affiliates, and a per share price of
$<A NAME="a_cp_text_1_36"></A>2.59, based on the closing sale price of our Ordinary Shares on June <A NAME="a_cp_text_1_38"></A>30,
2015.&nbsp; Excluding the shares to be offered in this offering, we have sold an aggregate of $650,004 of our Ordinary Shares
pursuant to General Instruction I.B.5. of Form F-3 during the prior 12 calendar month period that ends on and includes the date
of this prospectus and an aggregate of $<A NAME="a_cp_text_1_40"></A>70,567 of our Ordinary Shares remains available for sale
pursuant to General Instruction I.B.5. of Form F-3 under a separate Registration Statement on Form F-3 (File No. 333-193927). </P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This
registration statement also relates to the resale of:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">up
                                         to 103,890 Ordinary Shares sold to YA Global pursuant to a Share Purchase Agreement,
                                         dated as of June 10, 2015 (the &ldquo;2015 PIPE&rdquo;);</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">up
                                         to 20,573 Ordinary Shares that were issued to Telegraph Hill Capital Fund I, LLC (&ldquo;THCAP&rdquo;)
                                         between September 1, 2013 and January 1, 2015 as Service Fees and Director Fees; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">up
                                         to 78,311 Ordinary Shares issuable upon exercise of warrants issued to certain selling
                                         shareholders who received the warrants in connection with a loan transaction in 2009.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
selling shareholders may sell the Ordinary Shares, from time to time, in regular brokerage transactions, in transactions directly
with market makers or in privately negotiated transactions. For additional information on the methods of sale that may be used
by the selling shareholders, see the section titled &ldquo;Plan of Distribution&rdquo; beginning on page 24.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
will not receive any of the proceeds from the sale of the Ordinary Shares offered by the selling shareholders. However, we will
receive proceeds from YA Global from the initial sale of the shares that are sold to YA Global, under the 2014 SEDA. We will also
receive proceeds upon exercise of warrants.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> Our Ordinary Shares are traded on the NASDAQ
Capital Market under the symbol &ldquo;BOSC&rdquo;. On <A NAME="a_cp_text_1_42"></A>August 11, 2015, the last reported sale price
of our Ordinary Shares on the NASDAQ Capital Market was $<A NAME="a_cp_text_1_44"></A>2.18 per share. You are urged to obtain
current market quotations for the Ordinary Shares. </P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">You
should read both this prospectus and any prospectus supplement, together with the additional information described under the heading
&quot;Incorporation of Certain Documents by Reference&quot; before you decide to invest in our Ordinary Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>INVESTING
IN OUR ORDINARY SHARES INVOLVES A HIGH DEGREE OF RISK. SEE &ldquo;RISK FACTORS&rdquo; ON PAGE4  OF THIS PROSPECTUS TO READ ABOUT
FACTORS YOU SHOULD CONSIDER BEFORE PURCHASING OUR ORDINARY SHARES. </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>YA
Global has informed us it is an &ldquo;underwriter&rdquo; within the meaning of the Securities Act of 1933, as amended, or Securities
Act. To the best of our knowledge, no other underwriter or person has been engaged to facilitate the sale of Ordinary Shares in
this offering. The Securities and Exchange Commission, or Commission, may take the view that, under certain circumstances, any
broker-dealers or agents that participate with the selling shareholders in the distribution of the Ordinary Shares may be deemed
to be &ldquo;underwriters&rdquo; within the meaning of the Securities Act. Commissions, discounts or concessions received by any
such broker-dealer or agent may be deemed to be underwriting commissions under the Securities Act.</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Neither
the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of these securities or passed
upon the accuracy or adequacy of this registration statement. Any representation to the contrary is a criminal offense.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
date of this prospectus is _______, 2015&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><A NAME="toc"></A><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>TABLE
OF CONTENTS</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; line-height: 115%; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Item</B></FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Page</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#prospect"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Prospectus Summary</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">1</TD></TR>
<TR STYLE="vertical-align: top; ">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#theoffer"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Offering</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">2</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#risk"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Risk Factors</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">4</TD></TR>
<TR STYLE="vertical-align: top; ">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#forward"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Forward-Looking Statements</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">16</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#capitalization"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Capitalization and Indebtedness</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">17</TD></TR>
<TR STYLE="vertical-align: top; ">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#useofproceeds"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Use of Proceeds</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">18</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#sellingshare"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Selling Shareholders</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">18</TD></TR>
<TR STYLE="vertical-align: top; ">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#plan"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Plan of Distribution</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">24</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#description"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Description of Ordinary Shares</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">26</TD></TR>
<TR STYLE="vertical-align: top; ">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#offeringexpe"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Offering Expenses</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">28</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#valiity"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Validity of Securities</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">28</TD></TR>
<TR STYLE="vertical-align: top; ">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#experts"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Experts</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">28</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#where"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Where You Can Find More Information</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">28</TD></TR>
<TR STYLE="vertical-align: top; ">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#incorporation"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Incorporation of Certain Documents by Reference</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">29</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><A HREF="#enforce"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Enforceability of Civil Liabilities</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; line-height: 115%; text-align: center">30</TD></TR>
</TABLE>


<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify"></P>




<DIV STYLE="padding: 5; border: Black 1.5pt solid; width: 99%">

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><A NAME="prospect"></A><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>PROSPECTUS
SUMMARY</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>About
This Prospectus</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This
prospectus is part of a registration statement that we filed with the Securities and Exchange Commission, or SEC, utilizing a
&ldquo;shelf&rdquo; registration process. Under this shelf process, the selling shareholders referred to in this prospectus may
sell up to 609,813 Ordinary Shares, from time to time, in one or more offerings in any manner described under the section in this
prospectus entitled &ldquo;Plan of Distribution.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
have not authorized anyone to provide you with information different from that contained or incorporated by reference in this
prospectus. The selling shareholders are offering to sell, and seeking offers to buy our Ordinary Shares 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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Unless
the context otherwise requires, all references in this prospectus to &ldquo;BOS,&rdquo; &ldquo;we,&rdquo; &ldquo;our,&rdquo; &ldquo;our
company,&rdquo; &ldquo;us&rdquo; and the &ldquo;Company&rdquo; refer to B.O.S Better Online Solutions Ltd. and its consolidated
subsidiaries.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">All
references in this prospectus to &ldquo;Ordinary Shares&rdquo; refer to our Ordinary Shares, nominal value NIS 80.00 per share.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">All
references in this prospectus to &ldquo;dollars&rdquo; or &ldquo;$&rdquo; are to United States Dollars.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">All
references in this prospectus to &ldquo;shekels&rdquo; or &ldquo;NIS&rdquo; are to New Israeli Shekels.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>The
Company</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
were incorporated in Israel in 1990 and are subject to the Israeli Companies Law. Our executive offices, shipping and service
operations are located in Israel. Our address in Israel is&nbsp;20 Freiman Street, Rishon LeZion, 75100, Israel.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
address in the United States is B.O.S Better Online Solutions Ltd. c/o Ruby-tech, Inc. 147-20 184th St., Jamaica NY 11413, USA,
telephone 508-655-2312.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
telephone number is 972-3-954-2000 and our website address is&nbsp;<U>www.boscom.com</U>. Our subsidiaries&rsquo; websites are:
Odem -&nbsp;<U>www.odem.co.il</U>; and Dimex &ndash;&nbsp;<U>www.dimex.co.il.</U>&nbsp;The information contained on, or linked
from, our websites is not a part of this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We operate our business through two divisions:</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 24px; line-height: 115%; font-size: 10pt; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Supply Chain Solutions &ndash; conducted through our wholly owned subsidiary, Odem. Our Supply Chain Solutions business offers a wide range of electronic components to customers in the defense high technology industry and supply chain services for aviation customers that prefer to consolidate their component acquisitions through a supplier that is able to provide a comprehensive solution to their components-supply needs. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; line-height: 115%; font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 10pt; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">RFID and Mobile Solutions &ndash; conducted through our wholly owned subsidiary, Dimex. Our RFID and Mobile Solutions offerings form a comprehensive turn-key solution for Automatic Identification and Data Collection (AIDC), combining mobile infrastructure middleware software and a software application of manufacturers that we represent. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<DIV STYLE="padding: 5; border: Black 1.5pt solid; width: 99%">

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; margin-top: 0; margin-bottom: 0; text-align: center"><A NAME="theoffer"></A><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>THE
OFFERING</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>General</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This
prospectus relates to the offering by selling shareholders of up to 609,813 Ordinary Shares as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">up
                                         to 407,039 Ordinary Shares by YA Global that may be issued to it under the 2014 SEDA,
                                         which is discussed below;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">up
                                         to 103,890 Ordinary Shares that were issued to YA Global pursuant to the 2015 PIPE;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">up
                                         to 20,573 Ordinary Shares that were issued to THCAP during the period between September
                                         1, 2013 and January 1, 2015 as Service Fees and Director Fees; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">up
                                         to 78,311 Ordinary Shares that are issuable to certain shareholders of the Company upon
                                         the exercise of warrants that were issued to them in 2009 in connection with a loan transaction.
                                         The warrants are exercisable, in whole or in part, until July 22, 2017, at an exercise
                                         price per ordinary share of $7.43.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
selling shareholders may sell the Ordinary Shares, from time to time, in regular brokerage transactions, in transactions directly
with market makers or in privately negotiated transactions. For additional information on the methods of sale that may be used
by the selling shareholders, see the section titled &ldquo;Plan of Distribution&rdquo; beginning on page 24.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
will not receive any of the proceeds from the sale of the Ordinary Shares offered by the selling shareholders. However, we will
receive proceeds from YA Global from the initial sale of the shares that are sold to YA Global under the 2014 SEDA. We will also
receive proceeds upon exercise of the warrants.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">BOS
is filing the registration statement of which this prospectus is a part at this time to fulfill its contractual obligations 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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Standby
Equity Distribution Agreement</I></B><I>s</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>2014
SEDA</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
February 3, 2014, we entered into a Standby Equity Distribution Agreement,&nbsp;or 2014 SEDA, with YA Global under which we have
the opportunity, for a three-year period beginning on March 5, 2014, the date on which the Commission first declared effective
a registration statement registering the resale of our Ordinary Shares by YA Global under the 2014 SEDA, to sell our Ordinary
Shares to YA Global for a total purchase price of up to $2,000,000, at our sole discretion. We previously filed a registration
statement in respect of the shares issuable in connection with the 2014 SEDA, pursuant to which YA Global resold 290,214 Ordinary
Shares. The registration statement of which this prospectus forms a part is being filed in respect of the balance of shares still
available for drawdown pursuant to the 2014 SEDA (up to $1,001,316).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> We are registering for resale by YA Global
407,039 Ordinary Shares that we may sell to it under the 2014 SEDA. In the event that the number of Ordinary Shares that we have
registered for sale by YA Global after purchase by YA Global under the 2014 SEDA results in proceeds to us of less than $1,001,316,
we will need to file one or more additional registration statements covering additional shares to make up the shortfall, before
we can sell such additional shares to YA Global under the 2014 SEDA. The closing market price of our Ordinary Shares as of <A NAME="a_cp_text_1_46"></A>August
11, 2015 was $<A NAME="a_cp_text_1_48"></A>2.18. Assuming this is the price per share used as a basis for the calculations for
all draw downs under the 2014 SEDA, we would be able to sell the full 407,039 Ordinary Shares to YA Global, and receive gross
proceeds of approximately $<A NAME="a_cp_text_1_50"></A>887,000 under the 2014 SEDA. <A NAME="a_cp_text_1_51"></A> YA&rsquo;s
obligations under the 2014 SEDA are not transferable. </P>





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</DIV>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<DIV STYLE="padding: 5; border: Black 1.5pt solid; width: 99%">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt">&nbsp;</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;For
each Ordinary Share purchased under the 2014 SEDA, YA Global will pay 95% of the lowest daily VWAP (as defined below) of the Ordinary
Shares during the five consecutive trading days following the date of an advance notice from us (provided such VWAP is greater
than or equal to 90% of the last closing price of the Ordinary Shares at the time of delivery of the advance notice, or the Minimum
Acceptable Price -&ldquo;MAP&rdquo;). &quot;VWAP&quot; means, as of any date, the daily dollar volume-weighted average price for
such security as reported by Bloomberg, LP.&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Once
presented with an advance notice, YA Global is required to purchase the number of shares specified in the advance notice (subject
to complying with the conditions set forth in the 2014 SEDA). Each such notice may be for an amount of Ordinary Shares not to
exceed $500,000.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
the VWAP in any of the five consecutive trading days is below the MAP (as defined above), then that day shall be excluded from
the five day pricing period, and the amount of the advance notice shall automatically be reduced by 20% for each such trading
day. If the VWAP in all five trading days in below the MAP, then the Company may not be able to sell any Ordinary Shares pursuant
to the advance notice. For example, assuming that the last closing price of the shares was $3.00 at the time of the delivery of
an advance notice for $500,000, the MAP would be $2.70 per share. If the VWAP during the five day pricing period was $2.80, $2.90,
$2.20, $3.00 and $3.10, the dollar amount of the shares that YA Global would be required to purchase would be $400,000.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
accordance with applicable Commission guidelines, the dollar amount of the Ordinary Shares that we may sell to YA Global under
the 2014 SEDA was less than one-third of our public float at the time of the execution of the 2014 SEDA.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">There
is no arrangement for funds to be received in an escrow, trust or similar arrangement. In connection with any advance notice,
if any portion of an advance would cause the beneficial ownership of our then outstanding Ordinary Shares by YA Global to exceed
9.99% or to exceed the aggregate offering price or number of Ordinary Shares available for issuance pursuant to this prospectus,
then such portion shall automatically be deemed to be withdrawn by us with no further action required by us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0;  text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
have paid to YA Global a commitment fee of 13,711 Ordinary Shares. We may terminate the 2014 SEDA at any time upon prior notice
to YA Global, as long as there are no advances outstanding and we have paid to YA Global all amounts then due. A copy of the 2014
SEDA is attached as Exhibit 99.2 to our Current Report on Form 6-K as filed with the Commission on February 6, 2014, which is
incorporated by reference into the registration statement of which this prospectus forms a part.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>2015
SEDA</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
February 17, 2015, we entered into a Standby Equity Distribution Agreement,&nbsp;or 2015 SEDA, with YA Global under which we have
the opportunity, for a forty-month period beginning on the date on which the Commission first declares effective a registration
statement registering the resale of our Ordinary Shares by YA Global, to sell our Ordinary Shares to YA Global for a total purchase
price of up to $1,300,000, at our sole discretion. We have not yet filed a registration statement in respect of the 2015 SEDA.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
accordance with applicable Commission guidelines, the dollar amount of the Ordinary Shares that we may sell to YA Global under
the 2015 SEDA was less than one-third of our public float at the time of the execution of the 2015 SEDA.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>2015
PIPE</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
June 11, 2015, we entered into a Share Purchase Agreement with certain investors, including YA Global, members of management,
and certain business partners of the Company, under which the Company raised an aggregate amount $598,662 at a price per share
of $2.406, which is equal to 94% of the weighted average closing price of the Ordinary Shares on the NASDAQ during the 20 days
prior to the signing. YA Global provided $250,000 pursuant to the 2015 PIPE, in consideration for which the company issued 103,890
Ordinary Shares. The Ordinary Shares sold to YA Global in the 2015 PIPE are included in this registration statement. A copy of
the Share Purchase Agreement is attached as Exhibit 4.2 to this registration statement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">For
additional details see &ldquo;Selling Shareholders&rdquo;.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><A NAME="risk"></A><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>RISK
FACTORS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Risks
relating to our financial results and capital structure:</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><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.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As
of December 31, 2014, we had $760,000 in long-term debt (including current maturities of $570,000) and $4.3 million of short term
bank loans drawn under a revolving credit facility.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
depend mainly on cash generated by continuing operating activities to make payments on our debt. We cannot assure you 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 business strategy, as well as on economic, financial, competitive and
technical factors (See &ldquo;Item 5B. Liquidity and Capital Resources&rdquo; below).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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&rsquo; demand for products that we sell, 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 (See &ldquo;Item 11. Quantitative
and Qualitative Disclosures about Market Risk&rdquo; in our Annual Report on Form 20-F for the fiscal year ended December 31,
2014 (the &ldquo;Form 20-F&rdquo;), which is incorporated into this registration statement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in;  text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in;  text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0;  text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As
of December 31, 2014, we had an accumulated deficit of $71 million. We ended year 2014 with a loss of $433,000, and year 2013
at breakeven. We had net losses in each of the fiscal years 2009-2012. Our ability to maintain and improve future levels of sales
and achieve profitability depends on many factors, which include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">delivering
    products in a timely manner;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">successfully
    implementing our business strategy;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">increased
    demand for existing products; and</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">controlling
    costs.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0;  text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">There
can be no assurance that we will be able to meet our challenges and to achieve profitability in the future or that the level of
historic sales will continue in the future or that our net losses will not increase in the future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>We
may be unable to maintain our gross profit margins.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
sales and profitability may vary in any given year, and from quarter to quarter. In order to increase sales or to enter into new
markets with new products or due to competition we may find it necessary to decrease prices in order to be competitive. Additionally,
our gross profit margin tends to fluctuate mainly due to variety and mix of products and changing suppliers prices. 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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>We
depend on one bank which provides us most of our credit.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
rely on Bank Leumi le-Israel&nbsp;Ltd. (&ldquo;Bank Leumi&rdquo;) to provide most of the credit facilities to our subsidiaries.
As of December 31, 2014, we had $4.2 million drawn under a Bank Leumi short term revolving credit facility.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Our
assets are subject to a security interest in favor of Bank Leumi. Our failure to repay the bank loan, if required, could result
in legal action against us, which could require the sale of all of our assets. </I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
repayment of our debt to Bank Leumi is secured by a first priority floating charge on all of our Company&rsquo;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&rsquo;s goodwill
and its shares of our Israeli subsidiaries, BOS - Dimex Ltd. (&ldquo;Dimex&rdquo;) and BOS - Odem Ltd. (&ldquo;Odem&rdquo;). In
addition, the Company and its Israeli subsidiaries entered into a series of intercompany guarantees in favor of Bank Leumi.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
we are unable to repay the bank loan when due, the bank could foreclose on our assets in order to recover the amounts due. Any
such action might require us to curtail or cease operations (See &ldquo;Item 5B. Liquidity and Capital Resources&rdquo; in our
Form 20-F).</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Our
debt obligations may hinder our growth and put us at a competitive disadvantage.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: left; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">Our
loan agreements contain a number of conditions and limitations on the way in</FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">
<FONT STYLE="font-weight: normal">which we can operate our business, including limitations on our ability to raise debt, sell
or acquire assets and pay dividends. These limitations 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 restrictions
contained in our loan agreements could lead to a default under the terms of these agreements (See &ldquo;Item 5B. Liquidity and
Capital Resources&rdquo; in our Form 20-F).</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Risks
related to our business:</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>We
depend on key personnel for the success of our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt; text-align: left"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">In
order to succeed we would need to be able to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">retain
    the executive officers and key technical personnel who have been involved in the development of our two operating divisions;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">attract
    and retain additional qualified personnel to provide technological depth; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">attract
    and retain highly skilled personnel in various functions of our business.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
goal is to grow 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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">managing
    geographically dispersed operations;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">retaining
    and motivating key personnel of the acquired businesses;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">assimilating
    different corporate cultures;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">preserving
    the business relationships with existing key customers and suppliers;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">maintaining
    uniform standards, controls, procedures and policies; and</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">introducing
    joint products and service offerings.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
addition, 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, exposure to contractual penalties, costs or expenses, as well as damage to our reputation
in the marketplace.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in; "></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
inability to manage growth effectively could have a material adverse effect on our business, financial condition and results of
operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>We
may expand our business through acquisitions that could result in diversion of resources and extra expenses. This could disrupt
our business and adversely affect our financial condition.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
the past, the Company has made several acquisitions, such as the acquisition of Dimex Systems&rsquo; business in March 2008, and
the acquisition of BOS Supply Chain Solutions (Summit) Inc. (&quot;Summit&quot;), a New Jersey based company, in October 2007
(Summit filed for Chapter 7 bankruptcy relief on November 23, 2010). We may expand our services through additional acquisitions.
The negotiation of acquisitions, investments or joint ventures, as well as the integration of acquired or jointly developed businesses
or technologies, could divert our management&rsquo;s time and resources. There can be no assurance that we will be able to successfully
integrate and manage future acquisitions, if they occur.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Further,
once integrated, acquisitions may not achieve comparable levels of revenues, profitability or productivity as were prior to the
acquisitions 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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>We
do not have collateral or credit insurance for all of our customers&rsquo; debt, and our allowance for bad debts may increase.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
customers&rsquo; debt is derived from sales to customers located primarily in Israel, the Far East and Europe. We do not generally
require collateral; however most of our debt of customers outside of Israel is insured against customer nonpayment through the
Israeli Credit Insurance Company Ltd.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
balance of allowance for bad debt as of December 31, 2014 amounted to $191,000, which was determined by our management to be sufficient.
In face of a global economic slowdown or if a local or global recession reoccurs, we may be required to record additional and
significant allowances for bad debts.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Certain
customers of our Supply Chain Solutions division may cancel purchase orders they placed before the delivery.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Supply
chain programs for the sale of electronic components, including the programs offered by our Supply Chain Solutions division, are
designed to accommodate the preference of customers to work with a limited number of suppliers that are able to provide a wide
range of electronic components under one order. In the event we are not able to provide all of the components required by a customer,
they could elect to terminate the entire order before its delivery. In addition, certain of our individual product orders provide
a right of termination prior to delivery.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 could result in excess and obsolete inventory and could have a material adverse effect on our results
of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>The
electronic components provided by our Supply Chain Solutions division need to meet certain industry standards and for some customers
we need to be the manufacturers&rsquo; authorized distributors.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
main business of our Supply Chain Solutions division is the provision of electronic components to the aerospace and defense industry.
These components need to be in compliance with Aviation Standard number 9120 which was adopted by the International Aerospace
Quality Group. Noncompliance with these standards could limit our sales.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
addition, in face of an increased number of refurbished or non-original components offered in the marketplace, certain customers
have begun to insist on purchasing components only directly from authorized distributors of the manufacturers. This could impair
our ability to sell components of manufacturers for which we do not serve as authorized dealers and have a substantial adverse
effect on our business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Our
products may contain defects that may be costly to correct, delay market acceptance of our products, harm our reputation and expose
us to litigation.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Despite
testing by us, errors may be found in our software products.&nbsp;&nbsp;If defects are discovered, we may not be able to successfully
correct them in a timely manner, or at all.&nbsp;&nbsp;Defects and failures in our products could result in a loss of, or delay
in, market acceptance of our products and could damage our reputation.&nbsp;&nbsp;Although our standard license agreement with
our customers contains provisions designed to limit our exposure to potential product liability claims, it is possible that these
provisions may not be effective or enforceable under the laws of some jurisdictions, and we could fail to realize revenues and
suffer damage to our reputation as a result of, or in defense of, a substantial claim.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Our
products may infringe on the intellectual property rights of others.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Third
parties may assert claims that we have violated a patent, trademark, copyright or other proprietary intellectual property right
belonging to them. As is characteristic of our industry, there can be no assurance that our products do not or will not infringe
the proprietary rights of third parties, that third parties will not claim infringement by us with respect to patents or other
proprietary rights or that we would prevail in any such proceedings. Any infringement claims, whether or not meritorious, could
result in costly litigation or arbitration and divert the attention of technical and management personnel. Any adverse outcome
in litigation alleging infringement could require us to develop non-infringing technology or enter into royalty or licensing agreements.
If, in such situations, we are unable to obtain licenses on acceptable terms, we may be prevented from selling products that infringe
such intellectual property of a third party. An unfavorable outcome or settlement regarding one or more of these matters could
have a material adverse effect on our business and operating results.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>The
Supply Chain Solutions division engages in a number of business activities governed by U.S. Government Laws and Regulations, which
if violated, could subject the Company to civil or criminal fines and penalties.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Supply Chain Solutions division engages in a number of business activities governed by U.S. Government procurement laws and regulations
which change frequently, including regulations relating to import-export control and technology transfer restrictions. In addition,
the U.S. Foreign Corrupt Practices Act, or the FCPA, and similar anti-corruption laws in other jurisdictions, include anti-bribery
provisions. If we, or our sales representatives, fail to comply with these laws and regulations, we could be subject to administrative,
civil, or criminal liabilities that could have a material adverse effect on our business and results of operations. We may not
always be protected in cases of violation of the FCPA or other anti-corruption laws by our employees or third-parties acting on
our behalf. A violation of anti-corruption laws by our employees or third-parties during the performance of their obligations
for us may have a material adverse effect on our reputation operating results and financial condition.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>We
rely on certain key suppliers</I></B><I>.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Most
of our sales rely on products of certain key suppliers, which we represent on a non-exclusive basis. 33% of our Supply Chain Solutions
division purchases in the year 2014 were sourced from five key suppliers and 48% of our RFID and Mobile Solutions division purchases
in the year 2014 were sourced from six other key suppliers (including a software supplier). In the year 2013, 34% of our Supply
Chain Solutions division purchases were sourced from five key suppliers and 58% of our RFID and Mobile Solutions purchases were
sourced from five other key suppliers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in; "></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 0.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 and a decrease in our business until an alternative
source of supply can be obtained.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Future
changes in industry standards may have an adverse effect on our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">New
industry standards in the aviation and defense industry could cause a portion of our Supply Chain Solutions division&rsquo;s inventory
to become obsolete and unmarketable, which would adversely affect our results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">A
substantial amount of our revenues is denominated in U.S. dollars (&ldquo;U.S. dollars&rdquo; or &ldquo;dollars&quot;) or is U.S.
dollar-linked, but we incur a significant portion of our expenses, principally salaries and related personnel expenses in Israel
and rent for our facilities 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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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-measured cost of our operations in Israel will increase and our dollar-measured results of operations
will be adversely affected. In 2014, the NIS depreciated by approximately 12%, against the U.S. dollar, and in 2013 and 2012,
the NIS appreciated by approximately 7.0% and 2.3% respectively, against the U.S. dollar. In 2012 and 2013, the annual inflation
rate in Israel was approximately 1.63% and 1.82%, respectively. In year 2014, the annual deflation was 0.2%. Therefore, the U.S.
dollar cost of our Israeli operations decreased in 2014 and increased in 2013 and 2012. 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 our labor and other costs,
which will increase the U.S. dollar cost of our operations in Israel and harm our results of operations (see &ldquo;Item 5A. Results
of Operation - Impact of Inflation and Currency Fluctuations&rdquo; below)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>If
we are unsuccessful in introducing new products, we may be unable to expand our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
market for some of the products we market 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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
ability to anticipate changes in technology and industry standards and successfully market 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. If we are unable, for technological or other reasons, to market products that are competitive in technology and price
and responsive to customer needs, our business will be materially adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Our
Supply Chain division has significant sales worldwide and could encounter problems if conditions change in the places where we
market products.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
have sold and intend to continue to sell products in overseas markets, including in Europe and the Far East. A number of risks
are inherent in engaging in international transactions, including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">possible
    problems in collecting receivables;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">imposition
    of governmental controls, or export license requirements;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: -18pt"></P></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">political
                                         and economic instability in foreign companies;</FONT></P></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">foreign
    currency exchange rate risk</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">trade
    restrictions or changes in tariffs being imposed; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">laws
    and legal issues concerning foreign countries.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Unfavorable
global economic conditions could have a material adverse effect on our business, operating results and financial condition.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">A
financial and economic downturn in Israel and in one or more of our overseas markets may cause revenues of our customers to decrease.&nbsp;This
may result in reductions in sales of products and services in some markets, longer sales cycles, slower adoption of new technologies
and increased price competition. In addition, weakness in the end-user market could negatively affect the cash flow of our customers
who could, in turn, delay paying their obligations to us. This could increase our credit risk exposure and cause delays in our
recognition of revenues on future sales to these customers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>We
may be obligated to indemnify our directors and officers</I></B><I>.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Company has agreements with its directors and senior officers which provide, subject to Israeli law, indemnification by the Company
of 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 its capacity as
a director or officer of the Company, (b) reasonable litigation expenses, including attorney&rsquo;s fees, incurred by them pursuant
to an investigation or a proceeding commenced against them by a competent authority if it 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 1999 &ndash; 5759 (the &ldquo;Israeli Companies Law&rdquo;)), 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,
or in connection with a financial sanction, as a result of an act or omission of such person in its capacity as a director or
officer of the Company, (c) reasonable litigation expenses, including attorney&rsquo;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 its capacity as a director or officer of the Company, (d) expenses,
including reasonable litigation expenses and legal fees, incurred by such a director or officer as a result of a proceeding instituted
against him in relation to (A) infringements that may result in imposition of financial sanction pursuant to the provisions of
Chapter H'3 under the Israeli Securities Law or (B) administrative infringements pursuant to the provisions of Chapter H'4 under
the Israeli Securities Law or (C) infringements pursuant to the provisions of Chapter I'1 under the Israeli Securities Law; and
(e) payments to an injured party of infringement under Section 52ND(a)(1)(a) of the Israeli Securities Law. Payment pursuant to
such indemnification may materially adversely affect our financial condition.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>There
can be no assurance that we will not be classified as a passive foreign investment company (a &ldquo;PFIC&rdquo;).</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 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 &ldquo;qualified electing fund&rdquo; 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. You are advised to consult with your own tax advisor regarding the particular tax consequences related to the ownership
and disposition of our Ordinary Shares under your own particular factual circumstances.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>A
decline in the value of our market capitalization or other factors could require us to write-down the value of our goodwill, which
could have a material adverse effect on our results of operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
balance sheet contains a significant amount of goodwill and other amortizable intangible assets in long-term assets, totaling
about $4.2 million at December 31, 2014. We review goodwill annually for impairment, or more frequently when indications for potential
impairment exist. We review other amortizable intangible assets for impairment when indicators for impairment exist. The volatility
of our share price can cause significant changes to our market capitalization.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
our market capitalization experiences a significant decline and is below the value of our Shareholders' equity, if the carrying
amount of a reporting unit exceeds its fair value,</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">or
if any other quantitative or qualitative indication of impairment of goodwill arises in the future, we may be required to record
impairment charges for our goodwill. Any such write-downs, if required, could result in a significant non-cash expense on our
income statement, which could have a material adverse effect on our results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>There
are substantial risks associated with the SEDAs, which could contribute to the decline of our share price and have a dilutive
impact on our existing shareholders.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 40pt"> The sale of our Ordinary Shares to YA Global
pursuant to the 2014 SEDA and the 2015 SEDA (collectively, the &ldquo;SEDAs&rdquo;) will have a dilutive impact on our shareholders.
YA Global may resell some, if not all, of the shares we issue to it under the SEDAs and such sales could cause the market price
of our Ordinary Shares to decline significantly. To the extent of any such decline, any subsequent advances would require us to
issue a greater number of Ordinary Shares to YA Global in exchange for each dollar of the advance. Under these circumstances,
our existing shareholders would experience greater dilution. Although YA Global is precluded from short sales, the sale of our
Ordinary Shares under the SEDAs could encourage short sales by third parties, which could contribute to the further decline of
our share price. The closing market price of our Ordinary Shares as of <A NAME="a_cp_text_1_53"></A>August 11, 2015 was $<A NAME="a_cp_text_1_55"></A>2.18.
Assuming this is the price per share used as a basis for the calculations for all draw downs under the 2014 SEDA, we would be
able to sell the full 407,039 Ordinary Shares to YA Global, and receive gross proceeds of approximately $<A NAME="a_cp_text_1_57"></A>887,000.
Such amount of shares would comprise 16.4% of our issued and outstanding share capital (post sale). In addition, we may issue
up to an additional $1,300,000 in Ordinary Shares pursuant to the 2015 SEDA following the registration of such shares pursuant
to one or more additional registration statements, which would result in additional dilution to our shareholders. </P>





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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>We
may fail to maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley
Act of 2002, which could have a material adverse effect on our operating results, investor confidence in our reported financial
information, and the market price of our Ordinary Shares.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
efforts to comply with the requirements of Section 404 of the Sarbanes-Oxley Act of 2002, governing internal control and procedures
for financial reporting have resulted in increased general and administrative expenses and a diversion of management time and
attention, and we expect these efforts to require the continued commitment of significant resources.&nbsp; We may identify material
weaknesses or significant deficiencies in our assessments of our internal control over financial reporting.&nbsp; Failure to maintain
effective internal control over financial reporting could result in investigations or sanctions by regulatory authorities, and
could have a material adverse effect on our operating results, investor confidence in our reported financial information, and
the market price of our Ordinary Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Risks
related to our Ordinary Shares:</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 40pt"> The market price of our Ordinary Shares has
been and may continue to be highly volatile and subject to wide fluctuations. From January 1, 2014 through <A NAME="a_cp_text_1_59"></A>August
11, 2015, the daily closing price of our Ordinary Shares in NASDAQ has ranged from $1.96 to $7.88 per share. We believe that these
fluctuations have been in response to a number of factors including the following, some of which are beyond our control: </P>





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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: .5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: .25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">variations
    between actual results and projections;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the
    limited trading volume in our stock;</FONT></TD></TR>

<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: .5in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: .25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">changes
    in our bank debts; and</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Nasdaq
Capital Market Listing Standards non-compliance notices.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
addition, stock markets in general 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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>The
Company&rsquo;s shares may be delisted from the NASDAQ Capital Market if it does not meet NASDAQ&rsquo;s continued listing requirements.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Over
the years, the Company has received several notices from the NASDAQ Stock Market advising it of non-compliance of its shares for
continued listing on the NASDAQ Capital Market.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Most
recently, on January 17, 2012, the Company received a notice from the Listing Qualifications Department of Nasdaq advising us
that the Company has failed to comply with Nasdaq&rsquo;s requirement that listed securities maintain a minimum bid price of $1.00
per share as set forth in Nasdaq Listing Rules.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
July 19, 2012, the Company requested a hearing with the Nasdaq Hearings Panel, and a hearing was held on August 30, 2012. The
Panel determined that the continued listing of the Company&rsquo;s securities on Nasdaq was contingent on the Company effecting
a reverse stock split in the ratio of 1 for 4 by not later than December 15, 2012, which it did.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On
January 2, 2013, the Company received a notice from the NASDAQ Office of General Counsel-Hearings, advising that the Company has
regained compliance with the applicable minimum bid price rule and is in compliance with all other applicable requirements for
listing on The NASDAQ Capital Market.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">There
can be no assurance that the Company will continue to qualify for listing on the Nasdaq Capital Market. If the Company&rsquo;s
Ordinary Shares are delisted from the Nasdaq Capital Market, trading in its Ordinary Shares could be conducted on the over-the-counter
market. In addition, if the Company&rsquo;s Ordinary Shares were delisted from the Nasdaq Capital Market, it would be subject
to the so-called penny stock rules that impose restrictive sales practice requirements on broker-dealers who sell those securities.
Consequently, de-listing, if it occurred, could affect the ability of the shareholders to sell their Ordinary Shares in the secondary
market. The restrictions applicable to shares that are de-listed, as well as the lack of liquidity for shares that are traded
on an electronic bulletin board, may adversely affect the market price of such shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Risks
related to our location in Israel:</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Political,
economic, and security conditions in Israel affect our operations and may limit our ability to produce and sell products or provide
our services.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Since
its establishment in 1948, Israel has been involved in a number of armed conflicts with its Arab neighbors and a state of hostility,
varying from time to time in intensity and degree, has continued into 2014. Since early July 2014, there has been a significant
increase in hostilities between Hamas, an Islamist organization governing the Gaza Strip, and Israel, including missiles launched
by Hamas from the Gaza Strip into Israel and airstrikes and ground operations conducted by Israel in the Gaza Strip. On July 21,
2014, all U.S. airlines and most major airlines of other nationalities suspended their flights to Israel&rsquo;s Ben-Gurion International
Airport for several days after a missile landed approximately 1.5 Km away. Also, since 2011, riots and uprisings in several countries
in the Middle East and neighboring regions have led to severe political instability in several neighboring states and to a decline
in the regional security situation. Such instability may affect the local and global economy, could negatively affect business
conditions and, therefore, could adversely affect our operations. Syria, in particular, has been engaged in a fierce civil war
and there have been threats from the Syrian government that if the conflict escalates and international forces intervene, Israel
may be attacked. In addition, Iran has threatened to attack Israel and is widely believed to be developing nuclear weapons. Iran
is also believed to have a strong influence among extremist groups in areas that neighbor Israel, such as Hamas in Gaza and Hezbollah
in Lebanon.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">To
date, these matters have not had any material effect on our business and results of operations; however, the regional security
situation and worldwide perceptions of it are outside our control and there can be no assurance that these matters will not negatively
affect us in the future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Furthermore,
several countries, principally those in the Middle East, as well as Malaysia and Indonesia, still restrict business with Israel
and Israeli companies. Restrictive laws or policies directed towards Israel or Israeli businesses may have an adverse impact on
our operations, our financial results or the expansion of our business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">A
number of our key personnel in Israel have standing obligations to perform periodic reserve duty in the Israel Defense Forces
and are subject to be called for active military duty at any time. If our key personnel are absent from our business for a significant
period of time, we may experience disruptions in our business that could affect the development, sales or technical support of
our products. As a result, we might not be able to compete in the market and our results of operations could be harmed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Provisions
of Israeli law may delay, prevent or make undesirable a merger or an acquisition of all or a significant portion of our shares
or assets. Israeli corporate law regulates acquisitions of shares through tender offers and mergers, requires special approvals
for transactions involving significant shareholders and regulates other matters that may be relevant to these types of transactions.
These provisions of Israeli law could have the effect of delaying or preventing a change in control and may make it more difficult
for a third party to acquire us, even if doing so would be beneficial to our shareholders. These provisions may limit the price
that investors may be willing to pay in the future for our Ordinary Shares. Furthermore, Israeli tax considerations may make potential
transactions undesirable to us or to some of our shareholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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&rsquo;s
securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>All
of our directors and officers are non-U.S. residents and enforceability of civil liabilities against them is uncertain.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">All
of our directors and 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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Your
rights and responsibilities as our shareholder will be governed by Israeli law, which differ in some respects from the rights
and responsibilities of shareholders of United States corporations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Since
we are incorporated under Israeli law, the rights and responsibilities of our shareholders are governed by our articles of association
and Israeli law. These rights and responsibilities differ in some respects from the rights and responsibilities of shareholders
in United States-based corporations. In particular, a shareholder of an Israeli company has a duty to act in good faith towards
the company and other shareholders and to refrain from abusing its power in the company, including, among other things, in voting
at the general meeting of shareholders on certain matters, such as an amendment to the company&rsquo;s articles of association,
an increase of the company&rsquo;s authorized share capital, a merger and approval of related party transactions that require
shareholder approval. In addition, a shareholder who knows that it possesses the power to determine the outcome of a shareholders&rsquo;
vote or to appoint or prevent the appointment of a director or executive officer in the company has a duty of fairness towards
the company. These provisions may be interpreted to impose additional obligations and liabilities on our shareholders that are
not typically imposed on shareholders of U.S. corporations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>As
a foreign private issuer whose shares are listed on The Nasdaq Capital Market, we have elected to follow certain home country
corporate governance practices instead of certain Nasdaq requirements.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
are a foreign private issuer as such term is defined under U.S. federal securities laws. As a foreign private issuer, we have
elected to follow certain home country corporate governance practices instead of certain requirements of the Marketplace Rules
of The Nasdaq Capital Market, or the Nasdaq Marketplace Rules. We may in the future elect to follow Israeli corporate governance
practices with regard to, among other things, the composition of our board of directors, compensation of officers, director nomination
procedures and quorum requirements at shareholders&rsquo; meetings. In addition, we may elect to follow Israeli corporate governance
practices instead of the Nasdaq requirements to obtain shareholder approval for certain dilutive events (such as for the establishment
or amendment of certain equity-based compensation plans, issuances that will result in a change of control of the company, certain
transactions other than a public offering involving issuances of a 20% or more interest in the company and certain acquisitions
of the stock or assets of another company). Accordingly, our shareholders may not be afforded the same protection as provided
under Nasdaq&rsquo;s corporate governance rules. Following our home country governance practices as opposed to the requirements
that would otherwise apply to a U.S. company listed on The Nasdaq Capital Market may provide less protection than is accorded
to investors of domestic issuers. See &ldquo;Item 16G &ndash; Corporate Governance in our Form 20-F.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>If
we were to lose our foreign private issuer status under U.S. federal securities laws, we would incur additional expenses associated
with compliance with the U.S. securities laws applicable to U.S. domestic issuers.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As
a foreign private issuer, we are exempt from the rules and regulations under the Exchange Act, related to the furnishing and content
of proxy statements, and our officers, directors, and principal shareholders are exempt from the reporting and short-swing profit
recovery provisions contained in Section 16 of the Exchange Act. In addition, we are not required under the Exchange Act to file
annual, quarterly and current reports and financial statements with the Securities and Exchange Commission as frequently or as
promptly as domestic companies whose securities are registered under the Exchange Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
regulatory and compliance costs to us under U.S. securities laws, if we are required to comply with the reporting requirements
applicable to a U.S. domestic issuer, may be significantly higher than the cost we currently incur as a foreign private issuer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>As
a public company in the United States, we incur significant accounting, legal and other expenses as a result of listing our Ordinary
Shares on the Nasdaq Capital Market, and we may need to devote substantial resources to address new compliance initiatives and
reporting requirements.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent:.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As
a public company in the United States, we incur significant accounting, legal and other expenses as a result of listing our Ordinary
Shares on the Nasdaq Capital Market.&nbsp;&nbsp;These include costs associated with corporate governance requirements of the SEC
and the Marketplace Rules of Nasdaq, as well as requirements under Section 404 and other provisions of the Sarbanes-Oxley Act
of 2002. Any future changes in the laws and regulations affecting public companies in the United States and Israel, will result
in increased costs to us as we respond to such changes.&nbsp;&nbsp;These laws, rules and regulations could make it more difficult
or more costly for us to obtain certain types of insurance, including director and officer liability insurance, and we may be
forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage.&nbsp;&nbsp;The
impact of these requirements could also make it more difficult for us to attract and retain qualified persons to serve on our
Board of Directors, our board committees or as executive officers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: center"><A NAME="forward"></A><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>FORWARD-LOOKING
STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This
prospectus contains or incorporates by reference 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 products that we sell; 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 products that we sell; 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.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
urge you to consider that statements which use the terms &ldquo;believe&rdquo;, &ldquo;do not believe&rdquo;, &ldquo;expect&rdquo;,
&ldquo;plan&rdquo;, &ldquo;intend&rdquo;, &ldquo;estimate&rdquo;, &ldquo;anticipate&rdquo;, &ldquo;projections&rdquo;, &ldquo;forecast&rdquo;
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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; padding: 0"></P>

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<P STYLE="margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0; text-align: center"><A NAME="capitalization"></A><B>CAPITALIZATION</B> <B>AND INDEBTEDNESS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; ">The table below
sets forth our condensed consolidated current liabilities and capitalization at December 31, 2014 on an actual basis. This table
was prepared in accordance with the U.S. Generally Accepted Accounting Principles.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Consolidated Capitalization (in US
thousands of dollars)</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: justify; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>December&nbsp;31,<BR>
2014&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><U>Short term debt</U></B></FONT></TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; font: 10pt Times New Roman, Times, Serif; text-align: justify">Secured</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">4,529</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; ">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt">Unsecured</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1.5pt solid">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1.5pt solid">6,052</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify">Total short term debt</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">10,581</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; ">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-decoration: underline; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><U>Long term debt</U></B></FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; ">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify">Secured</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">190</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt">Unsecured</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1.5pt solid">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1.5pt solid">193</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; ">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify">Total long term debt</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">383</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; ">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-decoration: underline; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><U>Shareholders equity</U></B></FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify">Share capital: Ordinary Shares &nbsp;issued 1,802,692 Ordinary Shares nominal value NIS 80.00 per share</TD>
    <TD STYLE="font-size: 10pt"></TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="font-size: 10pt; text-align: right">38,138</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
</TR>
<TR STYLE="vertical-align: bottom; ">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify">Additional paid-in Capital</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">38,701</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify">Accumulated other comprehensive loss</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(243</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; ">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt">Accumulated deficit</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1.5pt solid">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1.5pt solid">(71,299</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 4pt">Total shareholders equity</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 4pt double">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 4pt double">5,297</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 4pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
Company's operations are partially financed through revolving short-term loans in which maturity is automatically extended on
a monthly basis at the bank&rsquo;s discretion. The Company also has adequate alternative financing sources to finance its operations
in the foreseeable future, if and when maturity will not be extended.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="useofproceeds"></A><B>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We will not receive any proceeds from
the sale of shares by the selling shareholders. All net proceeds from the sale of the Ordinary Shares covered by this prospectus
will go to the selling shareholders. We will, however, receive proceeds from any sale of Ordinary Shares to YA Global pursuant
to the 2014 SEDA. For each ordinary share purchased under the 2014 SEDA, YA Global will pay 95% of the lowest daily volume weighted
average price during the five consecutive trading days after we deliver an advance notice to YA Global. Each such advance may
be for an amount not to exceed $500,000. We will also receive proceeds upon exercise of warrants issued to the shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We anticipate, and have represented
to YA Global in the 2014 SEDA, that the proceeds received under the 2014 SEDA will be utilized only for working capital and other
general corporate purposes and we anticipate that any warrant exercise proceeds that we receive will be used for the same purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="sellingshare"></A><B>SELLING SHAREHOLDERS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; ">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; ">The following
information contains a description of the selling shareholders, and their relationship to the Company and how the selling shareholders
acquired (or shall acquire) the shares to be sold in this offering.&nbsp;Shares may also be sold through the selling shareholders'
pledgees, assignees or successors-in-interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This prospectus
relates to the offering by the selling shareholders of up to 609,813 Ordinary Shares, as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">up to 407,039 Ordinary Shares by YA Global
    that may be issued to it under the 2014 SEDA, which is discussed below;</FONT></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">up to 103,890 Ordinary Shares that were
    issued to YA Global pursuant to the 2015 PIPE;</FONT></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">up to 20,573 Ordinary Shares that were
    issued to THCAP during the period between September 1, 2013 and January 1, 2015 as Service Fees and Director Fees; and</FONT></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">up to 78,311 Ordinary Shares that are
    issuable to the selling Lenders upon the exercise of warrants that were issued to them in connection with a loan transaction.
    The warrants are exercisable, in whole or in part, until July 22, 2017, at an exercise price per ordinary share of $7.43.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; ">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; "><B> YA Global Master
SPV LTD. (&lsquo;YA Global&rsquo;)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">:</FONT> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; "> &nbsp; </P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><A NAME="a_cp_text_1_62"><I> </A>2013 SEDA </I> :
<FONT STYLE="font-size: 10pt">On June 18, 2013, we entered into </FONT> <A NAME="a_cp_text_4_63"></A><FONT STYLE="font-size: 10pt"> a
Standby Equity Distribution Agreement,&nbsp; </FONT><A NAME="a_cp_text_1_64"></A><FONT STYLE="font-size: 10pt"> or 2013 SEDA,
with YA Global under which we had the opportunity, for a two-year period beginning on November 22, 2013, the date on which the
Commission first declared effective a registration statement registering the resale of our Ordinary Shares by YA Global under
the 2013 SEDA, to sell our Ordinary Shares to YA Global for a total purchase price of up to $600,000, at our sole discretion.
We previously filed a registration statement in respect of the shares issuable in connection with the 2013 SEDA, pursuant to which
YA Global resold 107,782 Ordinary Shares. We paid a commitment fee to YA Global of 7,500 Ordinary Shares on account of the 2013
SEDA. </FONT><A NAME="a_cp_text_4_65"></A><FONT STYLE="font-size: 10pt"> The registration statement of which this prospectus
forms a part </FONT><A NAME="a_cp_text_1_66"></A><FONT STYLE="font-size: 10pt"> does not include any Ordinary Shares that
were issued pursuant to the 2013 SEDA. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt; "> <A NAME="a_DV_C26"></A><A NAME="a_cp_text_1_67"></A><I>2014
SEDA: </I>On February 3, 2014, we entered into a Standby Equity Distribution Agreement, or 2014 SEDA, with YA Global under which
we have the opportunity, for a three-year period beginning on March 5, 2014, the date on which the Commission first declared effective
a registration statement registering the resale of our Ordinary Shares by YA Global under the 2014 SEDA, to sell our<A NAME="a_DV_C27"></A><A NAME="a_DV_X41"></A>
Ordinary Shares to YA Global<A NAME="a_DV_C28"></A> for a total purchase price of up to $2,000,000, at our sole discretion. We
previously filed a registration statement in respect of the shares issuable in connection with the 2014 SEDA, pursuant to which
YA Global resold 290,214 Ordinary Shares. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> &nbsp; </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> <A NAME="a_cp_text_1_70"></A><A NAME="a_DV_C29"></A>It
is possible that sales of Ordinary Shares purchased by YA Global pursuant to the 2013 SEDA and the 2014 SEDA during the period
from November 22, 2013 (closing price per share of $4.30) through August 11, 2015 (closing price per share of $2.18) have contributed
to the decline in the<A NAME="a_DV_C30"></A><A NAME="a_DV_X39"></A> <A NAME="a_cp_text_4_71"></A>market price of our Ordinary
Shares <A NAME="a_cp_text_1_72"></A><A NAME="a_DV_C31"></A>and future sales may result in additional declines. </P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"> We are registering for resale by YA Global
407,039 Ordinary Shares that we may sell to it under the 2014 SEDA. In the event that the number of Ordinary Shares that we have
registered for sale by YA Global after purchase by YA Global under the 2014 SEDA results in proceeds to us of less than $1,001,316,
we will need to file one or more additional registration statements covering additional shares to make up the shortfall, before
we can sell such additional shares to YA Global under the 2014 SEDA. The closing market price of our Ordinary Shares as of <A NAME="a_cp_text_1_74"></A>August
11, 2015 was $<A NAME="a_cp_text_1_76"></A>2.18. Assuming this is the price per share used as a basis for the calculations for
all draw downs under the 2014 SEDA, we would be able to sell the full 407,039 Ordinary Shares to YA Global, and receive gross
proceeds of approximately $<A NAME="a_cp_text_1_78"></A>887,000 under the 2014 SEDA. </P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: 0.5in">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><FONT STYLE="background-color: white"> For
each ordinary share purchased under the 2014 SEDA, YA Global will pay 95% of the lowest daily VWAP (as defined below) of the Ordinary
Shares during the five consecutive trading days following the date of an advance notice from us (provided such VWAP is greater
than or equal to 90% of the last closing price of the Ordinary Shares at the time of delivery of the advance notice). Once presented
with an advance notice, YA Global is required to purchase the number of shares specified in the advance notice. Each such notice
may be for an amount of Ordinary Shares not to exceed $500,000. &quot;VWAP&quot; means, as of any date, the daily dollar volume-weighted
average price for such security as reported by Bloomberg, LP.&nbsp;&nbsp;<A NAME="a_cp_text_1_79"></A>The obligations of YA Global
under the 2014 SEDA are not transferable. </FONT></P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: 0.5in; ">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><FONT STYLE="background-color: white"> In
accordance with applicable Commission guidelines, the dollar amount of the Ordinary Shares that we may sell to YA Global under
each SEDA was less than one-third of our public float at the time of the execution of the relevant SEDA. In the event that the
number of Ordinary Shares that we have registered for sale by YA Global after purchase by YA Global under the 2014 SEDA results
in proceeds to us of less than $1,001,316 under the 2014 SEDA, we will need to file one or more additional registration statements
covering additional shares to make up the shortfall before we can sell such additional shares to YA Global under the 2014 SEDA.
<A NAME="a_cp_text_2_82"></A> </FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; ">There is no
arrangement for funds to be received in an escrow, trust or similar arrangement. In connection with any advance notice, if any
portion of an advance would cause the beneficial ownership of our then outstanding Ordinary Shares by YA Global to exceed 9.99%
or to exceed the aggregate offering price or number of Ordinary Shares available for issuance pursuant to this prospectus, then
such portion shall automatically be deemed to be withdrawn by us with no further action required by us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: 0.5in">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; background-color: white"> We
have paid a commitment fee </FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A NAME="a_cp_text_1_84"></A><FONT STYLE="background-color: white"> to
YA Global of 13,711 Ordinary Shares </FONT><A NAME="a_cp_text_1_85"></A><FONT STYLE="background-color: white"> on account
of the 2014 SEDA. We may terminate the 2014 SEDA at any time upon prior notice to YA Global, as long as there are no advances
outstanding and we have paid to YA Global all amounts then due. A copy of the 2014 SEDA is attached as Exhibit 99.2 to our Current
Report on Form 6-K as filed with the Commission on February 6, 2014 which is incorporated by reference into the registration statement
of which this prospectus forms a part. </FONT></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I> 2015
SEDA: </I> On February 17, 2015, we entered into a Standby Equity Distribution Agreement,&nbsp;or 2015 SEDA, with YA Global
under which we have the opportunity, for forty-months period beginning on the date on which the Commission first declares effective
a registration statement registering the resale of our Ordinary Shares by YA Global, to sell our Ordinary Shares to YA Global
for a total purchase price of up to $1,300,000, at our sole discretion. We have paid a commitment fee to YA Global of 28,930 Ordinary
Shares on account of the 2015 SEDA. We have not yet filed a registration statement in respect of the 2015 SEDA. </FONT></P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><A NAME="a_cp_text_1_88"></A><I> 2015
Private Placement: </I> On June 11, 2015, we entered into a Share Purchase Agreement with certain investors, including YA
Global, members of management, and certain business partners of the Company, under which the Company raised an aggregate amount
$598,662 at a price per share of $2.406, which is equal to 94% of the weighted average closing price of the Ordinary Shares on
the NASDAQ during the 20 days prior to the signing. YA Global provided $250,000 pursuant to the 2015 PIPE, in consideration for
which the company issued 103,890 Ordinary Shares. The Ordinary Shares sold to YA Global in the 2015 PIPE are included in this
registration statement. A copy of the Share Purchase Agreement is attached as Exhibit 4.2 to this registration statement. </FONT></P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The table below sets forth certain information
concerning the number of ordinary shares owned by YA Global as of June 30, 2015, and the number of Ordinary Shares that may be
offered from time to time by YA Global under this prospectus. Because YA Global may offer all or some portion of the Ordinary
Shares, BOS has assumed for the purposes of the table below that YA Global will sell all of the Ordinary Shares offered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: center; border-bottom: Black 1.5pt solid; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Shares
Owned or</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Underlying Convertible</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Securities</B></FONT><BR> <FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Prior
to Offering</B></FONT></TD><TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Shares
Being</B></FONT></TD><TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: center; border-bottom: Black 1.5pt solid; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Shares Beneficially<BR>
 Owned After the<BR>
Offering</B> <SUP>(1)</SUP></FONT></TD><TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center; text-indent: 0">Number</TD><TD STYLE="padding: 0 0 1.5pt; font: 10pt Times New Roman, Times, Serif; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Percent <SUP>(2)</SUP></FONT></TD><TD STYLE="padding: 0 0 1.5pt; font: 10pt Times New Roman, Times, Serif; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center"><B>Offered</B></TD><TD STYLE="padding: 0 0 1.5pt; font-size: 10pt; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center; text-indent: 0">Number</TD><TD STYLE="padding: 0 0 1.5pt; font: 10pt Times New Roman, Times, Serif; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Percent <SUP>(2)</SUP></FONT></TD><TD STYLE="padding: 0 0 1.5pt; font: 10pt Times New Roman, Times, Serif; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 38%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">YA Global Master SPV Ltd<SUP>.(3)</SUP></FONT></TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: right; text-indent: 0">576,097</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: right; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">27.7
%</FONT></TD><TD STYLE="width: 2%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0"><SUP>(4)</SUP></TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: right; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">510,929
</FONT></TD><TD STYLE="width: 2%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0"><SUP>(5)</SUP></TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: right; text-indent: 0">65,168</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: right; text-indent: 0">2.62</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>&nbsp;</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>(1)</SUP> It is assumed&nbsp;that all of the shares
being offered by YA Global under this registration statement have been sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>(2)</SUP> Calculated based upon 2,080,317 Ordinary
Shares outstanding as of June 30, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>(3)</SUP> YA Global is the investor under the 2014
SEDA and one of the investors under the 2015 PIPE. All investment decisions and control of YA Global are made and held by its
investment manager, Yorkville Advisors, LLC (&ldquo;Yorkville Advisors&rdquo;). Mr. Mark Angelo, the portfolio manager of Yorkville
Advisors, makes the investment decisions on behalf of and controls Yorkville Advisors. YA Global has informed us that it is an
&ldquo;underwriter&rdquo; within the meaning of the Securities Act, and to the best of our knowledge, no other underwriter or
person has been engaged to facilitate the sale of Ordinary Shares in this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>(4)</SUP> YA Global owns 169,058 Ordinary Shares as
of the date of the registration statement of which this prospectus is a part, but we are registering for resale by it an additional
407,039 Ordinary Shares that may be acquired by it under the 2014 SEDA.&nbsp;Please see note 5 below for further information.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP> (5) </SUP> Includes shares issued to YA Global under
the 2015 PIPE and shares that may be sold by YA Global under the 2014 SEDA. The total number of shares that may be issued and
sold to YA Global under the 2014 SEDA depends on the prevailing market price at the time of such sales and is not currently determinable,
but is limited to a value of $2,000,000 under the 2014 SEDA (of which $998,684 were already drawn under a separate registration
statement), and subject to the other terms and conditions of the 2014 SEDA. The number of shares to be sold under the 2014 SEDA
to YA Global may be greater than 407,039, which is the total number of 2014 SEDA shares that YA Global may sell from time to time
under this prospectus. In the event that the number of Ordinary Shares that we have registered for sale by YA Global after purchase
by YA Global under the 2014 SEDA results in proceeds to us of less than $1,001,316 under the 2014 SEDA, we will need to file one
or more additional registration statements covering additional shares to make up the shortfall before we can sell such additional
shares to YA Global under the SEDA. The closing market price of our Ordinary Shares as of <A NAME="a_cp_text_1_90"></A>August
11, 2015 was $<A NAME="a_cp_text_1_92"></A>2.18. Assuming this is the price per share used as a basis for the calculations for
all draw downs under the 2014 SEDA, we would be able to sell the full 407,039 Ordinary Shares to YA Global, and receive gross
proceeds of approximately $<A NAME="a_cp_text_1_94"></A>887,000, in total. </P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>Telegraph Hill Capital Fund I, LLC (&lsquo;THCAP&rsquo;)</B>:
Mr. Luis Gutierrez Roy, a director of the Company since October 2010, is the managing partner of THCAP and may be deemed to have
shared voting and dispositive power with respect to company shares held by THCAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In September 2009, the Company entered
into an advisory agreement with Telegraph Hill Group LLC (the management company of Telegraph Hill Capital), pursuant to which
Telegraph Hill Group was to provide the Company with non-exclusive private financing and business consulting services (the &ldquo;Advisory
Agreement&rdquo;). In consideration, the Company issued to Telegraph Hill Capital warrants to purchase 3,600 Ordinary Shares at
an exercise price of $11 per share. The warrants were exercisable as of February 28, 2011, and could be exercised until August
31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In November 2009, the Company entered
into an amendment to the Advisory Agreement, pursuant to which THGroup LLC shall be paid a success fee of 5% of the revenues generated
to the Company from the sale of the Company products to business partners introduced by THGroup LLC. For payments the Company
paid and accrued pursuant to the Advisory Agreement in 2013, see Note 17c to the Consolidated Financial Statements for the year
ended December 31, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On October 5, 2010, the Company entered
into a Share Purchase Agreement with Telegraph Hill Capital for the issuance of an aggregate of 24,091 Ordinary Shares at a price
per share of $12.44, or approximately $300,000 in total. Pursuant to this agreement, Mr. Luis Gutierrez Roy was appointed to the
Board of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In December 13, 2012, the Company&rsquo;s shareholders
approved an additional grant to Telegraph Hill Capital of warrants to purchase 3,600 Ordinary Shares at an exercise price of $2.39
per Ordinary Share. The warrants' exercise price is equal to the weighted average of the closing prices of the Company&rsquo;s
Ordinary Shares on the Nasdaq Capital Market, during the twenty-day period preceding the date of the shareholders' meeting in
December. The warrants are exercisable for 3 years from their issuance date of December 13, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On December 13, 2012, the Company's
shareholders approved an additional amendment to the agreement with THCAP. Pursuant to this amendment, THCAP will be paid a monthly
retainer for business development services in the amount of $3,650 per month, payable in the Company's Ordinary Shares once a
year (the &quot;Services Fees&quot;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In addition, the Company's shareholders
approved the payment of the fees to its directors (excluding External Directors) in the Company's Ordinary Shares (the &quot;Director
Fees&quot;). At his request, payments of the director fees of Mr. Luis Guttierez Roy were made to THCAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On November 7,
2013 the Company's shareholders approved an additional amendment to the agreement with THCAP as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Payment is made
    once a quarter, at the end of each calendar quarter (instead of once a year).</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: left; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The price per share
    used for the share consideration calculation is equal to the weighted average closing price of the Ordinary Shares on the
    applicable stock market on the 20 trading days ending on the last day of the applicable quarter.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On December 31, 2014, December 31, 2013
and December 31, 2012, the Company issued to THCAP 6,004, 9,868 and 362 Ordinary Shares, respectively, as Service Fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On December 31, 2014, December 31, 2013
and December 31, 2012, the Company issued to THCAP 2,405, 1,219 and 1,077 Ordinary Shares, respectively, as Director Fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On August 21, 2014 the Company's Board of Directors
resolved to suspend the services of THCAP until decided otherwise by the Board of Directors. Currently no retainer is paid to
THCAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The table below sets forth certain information concerning the number of ordinary owned by THCAP as of June 30, 2015, and
the number of Ordinary Shares that may be offered from time to time by THCAP under this prospectus. Because THCAP may offer all
or some portion of the Ordinary Shares, BOS has assumed for the purposes of the table below that THCAP will sell all of the Ordinary
Shares offered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Shares Owned or<BR>
Underlying Convertible<BR>
Securities</B> <B>Prior<BR>
to Offering</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Shares</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Being</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Shares Beneficially<BR>
Owned After <BR>
the Offering</B> <SUP>(1)</SUP></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; ">
    <TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center">Number</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Percent <SUP>(2)</SUP></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0"><B>Offered</B></TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Number</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Percent <SUP>(2)</SUP></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0; vertical-align: top"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Telegraph Hill Capital Fund I, LLC <SUP>(3)</SUP></FONT></TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 16%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: center; vertical-align: top">86,320 (in includes warrants</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: right; text-indent: 0">4.1</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">%</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: right; text-indent: 0">20,573</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: right; text-indent: 0">65,747</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: right; text-indent: 0">3.1</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: left; text-indent: 0">%</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>(1)</SUP> It is assumed&nbsp;that all of the shares
being offered by THCAP under this registration statement have been sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>(2)</SUP> Calculated based upon 2,080,317 Ordinary
Shares outstanding as of June 30, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>(3)</SUP> Mr. Luis Gutierrez Roy may be deemed to have
sole voting and dispositive power with respect to the shares held by Telegraph Hill Capital Fund I, LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; "><I>August 2009 Debt Financing</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#9;In August 2009, the Company consummated
a $2.4 million Convertible Loan Financing with several lenders including, inter alia, THCAP, Catalyst Private Equity Partners
(Israel) II L.P., certain existing shareholders and members of its management (the &quot;Lenders&quot;). The financing consisted
of loans with a term of three years that bear interest at a rate equal to 8% per annum, compounded annually. The Company was to
repay the loan principal amount and the accrued interest in one payment at the end of the term, unless converted earlier into
Ordinary Shares at the discretion of the Lender. The Company granted the Lenders warrants to purchase 100% of the number of Ordinary
Shares into which the loan is convertible and committed to file a registration statement in respect of, among others, the shares
underlying the warrants. The warrants were exercisable, in whole or in part, from 18 months to 36 months from grant, at an exercise
price per ordinary share of $11.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In December 2011, the Company&rsquo;s
shareholders approved and the Company effected amendments to the terms of the Convertible Loan Financing agreements (the &quot;Conversion
Amendments&rdquo;). The Conversion Amendments provided that approximately $2.5 million of the outstanding convertible debt was
converted into Ordinary Shares at a reduced conversion price. In addition, the exercise periods of the warrants to purchase 161,000
shares that had been issued to the Lenders were extended by an additional two years until July 2014 and February 2015, with no
change to the exercise price of $11 per Ordinary Share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In January 30, 2014, at the Company's
request the lenders agreed to defer the registration of the Ordinary Shares underlying their warrants to 2015, to facilitate the
registration of the SEDA shares. In connection with such deferral, the exercise period of the Lenders' warrants to purchase 161,000
Ordinary Shares was extended until July 22, 2017, and the exercise price of the warrants was adjusted to the weighted average
price of the Ordinary Shares during the period of 20 days before January 30, 2014, which was $7.43.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The aforementioned amendments to the
warrants held by Catalyst, THCAP and members of the management were approved by the Company's Audit Committee and Board of Directors,
and the amendment to the warrants held by THCAP was also approved by the shareholders. The Ordinary Shares underlying THCAP's
warrants are not included in this registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The table below sets forth certain information
concerning the number of Ordinary Shares owned by the selling Lenders as of June 30, 2015, and the number of Ordinary Shares that
may be offered from time to time by the selling Lenders under this prospectus, all of which are issuable upon exercise of warrants.
Because the selling Lenders may offer all or some portion of the Ordinary Shares underlying their warrants, BOS has assumed for
the purposes of the table below that the selling Lenders will sell all of the Ordinary Shares offered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; padding: 0; text-indent: 0">Shares Owned or<BR>
Underlying Convertible<BR>
 Securities Prior<BR>
to Offering</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; padding: 0 0 1.5pt; text-indent: 0">Shares Being</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt"><B>Shares Beneficially<BR>
 Owned After<BR>
the Offering</B> <SUP>(1)</SUP></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">Number</TD><TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Percent <SUP>(2)</SUP></FONT></TD><TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0"><B>Offered</B></TD><TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">Number</TD><TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Percent <SUP>(2)</SUP></FONT></TD><TD STYLE="font-size: 10pt; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Catalyst Fund 3 Daniel Frish St. Tel Aviv 64731, Israel<SUP> (3)</SUP></FONT></TD><TD STYLE="width: 1%; font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right; padding: 0; text-indent: 0">40,770</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right; padding: 0; text-indent: 0">1.9</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">%</TD><TD STYLE="width: 1%; font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right; padding: 0; text-indent: 0">40,770</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right; padding: 0; text-indent: 0">-</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">-</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">%</TD></TR>
<TR STYLE="vertical-align: bottom; ">
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Bellite Pty Limited 7 Beresford Road, Rose Bay 2029, NSW, Australia<SUP>(4)</SUP></FONT></TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">145,133</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">6.9</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">%</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">19,971</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">125,162</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">6.0</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Dimex Systems (1988) Ltd. 3 Tvuot Ha&rsquo;aretz Street, Tel Aviv 69546, Israel<SUP>(5)</SUP></FONT></TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">109,302</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">5.2</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">%</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">16,953</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">92,349</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">4.4</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">%</TD></TR>
<TR STYLE="vertical-align: bottom; ">
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Yuval Viner c/o B.O.S Better Online Solutions Ltd. 20 Freiman Street Rishon LeZion, 75100, Israel<SUP>(6)</SUP></FONT></TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">18,708</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">0.9</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">%</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">270</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">18,438</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">0.9</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Avidan Zelikvosky c/o B.O.S Better Online Solutions Ltd. 20 Freiman Street Rishon LeZion, 75100, Israel<SUP>(7)</SUP></FONT></TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">14,930</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">0.7</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">%</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">270</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">14,660</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">0.7</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">%</TD></TR>
<TR STYLE="vertical-align: bottom; ">
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Eyal Cohen c/o B.O.S Better Online Solutions Ltd. 20 Freiman Street Rishon LeZion, 75100, Israel<SUP>(8)</SUP></FONT></TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">16,365</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">0.8</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">%</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">77</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">16,288</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">0.8</TD><TD STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">%</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE=""><SUP>&nbsp;</SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(1)
</SUP>It is assumed&nbsp;that all of the shares being offered to the selling Lenders under this registration statement have been
sold. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(2)
</SUP>Calculated based upon 2,080,317 Ordinary Shares outstanding as of June 30, 2015.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(3)
</SUP>&ldquo;Catalyst Fund&rdquo; 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 and to Catalyst Private Equity Partners (Israel) II L.P. (&ldquo;Catalyst Private Equity&rdquo;),
an Israeli limited partnership whose general partner is Catalyst Investments II L.P. (&ldquo;Catalyst Investments II&rdquo;).
Mr. Edouard Cukierman may be deemed to have sole voting and dispositive power with respect to shares held by Catalyst Fund. Mr.
Cukierman disclaims beneficial ownership in such shares, except to the extent of his proportionate interest in them as an indirect
shareholder in the general partner of Catalyst Fund. The shares being offered include 40,770 Ordinary Shares underlying a warrant
granted to Catalyst Private Equity. Mr. Edouard Cukierman may be deemed to share voting and dispositive power with respect to
shares held by Catalyst Private Equity. Mr. Cukierman disclaims beneficial ownership in such shares except to the extent of his
proportionate interest in them as an indirect shareholder in the general partner of Catalyst Investments II.<SUP> </SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(4)
</SUP>Mr. Les Szekely may be deemed to have sole voting and dispositive power with respect to the shares held by Bellite Pty Limited.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; "><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(5)
</SUP>Gabriela Jacobs may be deemed to have sole voting and dispositive power with respect to the shares held by Dimex Systems.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(6)
</SUP>Mr. Viner is the Chief Executive Officer of BOS.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(7)
</SUP>Mr. Zelikvosky is the President of BOS and a member of the Company's Board.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(8)
</SUP>Mr. Cohen is the Chief Financial Officer of BOS.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="plan"></A><B>PLAN OF DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The selling shareholders of the Ordinary
Shares and any of their respective pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their
Ordinary Shares on the Nasdaq Capital Market or any other stock exchange, market or trading facility on which the shares are traded
or in private transactions. These sales may be at fixed or negotiated prices. The selling shareholders may use any one or more
of the following methods when selling shares:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">ordinary brokerage transactions and transactions
    in which the broker-dealer solicits purchasers;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">block trades in which the broker-dealer
    will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the
    transaction;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">purchases by a broker-dealer as principal
    and resale by the broker-dealer for its account;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">an exchange distribution in accordance
    with the rules of the applicable exchange;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">privately negotiated transactions;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&ldquo;at the market&rdquo; or through
    market makers or into an existing market for the shares;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">broker-dealers may agree with the selling
    shareholders to sell a specified number of such shares at a stipulated price per share;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">through the writing or settlement of
    options or other hedging transactions, whether through an options exchange or otherwise;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">a combination of any such methods of
    sale; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">any other method permitted pursuant to
    applicable law.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The selling shareholders may also sell
shares under Rule 144 under the Securities Act), if available, rather than under this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Broker-dealers engaged by the selling
shareholders may arrange for other broker-dealers to participate in sales. Broker-dealers may receive commissions or discounts
from the selling shareholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts
to be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess
of a customary brokerage commission in compliance with NASDR Rule 2440; and in the case of a principal transaction a markup or
markdown in compliance with NASDR IM-2440.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In connection with the sale of the Ordinary
Shares or interests therein, the selling shareholders may enter into hedging transactions with broker-dealers or other financial
institutions, which may in turn engage in short sales of the Ordinary Shares in the course of hedging the positions they assume.
The selling shareholders may also enter into option or other transactions with broker-dealers or other financial institutions
or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution
of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The selling shareholders and any broker-dealers
or agents that are involved in selling the shares may be deemed to be &ldquo;underwriters&rdquo; within the meaning of the Securities
Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on
the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.
Each of the selling shareholders has informed the Company that it does not have any written or oral agreement or understanding,
directly or indirectly, with any person to distribute the Ordinary Shares. In no event shall any broker-dealer receive fees, commissions
and markups which, in the aggregate, exceed eight percent (8%).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Because the selling shareholders may
be deemed to be &ldquo;underwriters&rdquo; within the meaning of the Securities Act, they will be subject to the prospectus delivery
requirements of the Securities Act including Rule 172 thereunder. There is no underwriter or coordinating broker acting in connection
with the proposed sale of the resale shares by the selling shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have agreed to keep this prospectus
effective until the earlier of (i) the date on which the shares may be resold by the selling shareholder without registration
and without regard to any volume limitations by reason of Rule 144 under the Securities Act or any other rule of similar effect
or (ii) all of the shares have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of
similar effect. The resale shares will be sold only through registered or licensed brokers or dealers if required under applicable
state securities laws. In addition, in certain states, the resale shares may not be sold unless they have been registered or qualified
for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied
with.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Expenses, Indemnification</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We will not receive any of the proceeds
from the sale of the Ordinary Shares sold by the selling shareholder and will bear all expenses related to the registration of
this offering but will not pay for any commissions, fees or discounts, if any. We have agreed to indemnify YA Global against certain
losses, claims, damages and liabilities, including liabilities under the Securities Act. We have also agreed to indemnify the
Lenders against certain losses, claims damages and liabilities, including liabilities under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Supplements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In the event of a material change in
the plan of distribution disclosed in this prospectus, the selling shareholders will not be able to effect transactions in the
shares pursuant to this prospectus until such time as a post-effective amendment to the registration statement is filed with,
and declared effective by, the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Regulation M</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have informed the selling shareholders
that Regulation M promulgated under the Securities Exchange Act of 1934 may be applicable to them with respect to any purchase
or sale of our Ordinary Shares. In general, Rule 102 under Regulation M prohibits any person connected with a distribution of
our Ordinary Shares from directly or indirectly bidding for, or purchasing for any account in which it has a beneficial interest,
any of the shares or any right to purchase the shares, for a period of one business day before and after completion of its participation
in the distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">During any distribution period, Regulation
M prohibits the selling shareholders and any other persons engaged in the distribution from engaging in any stabilizing bid or
purchasing our Ordinary Shares except for the purpose of preventing or retarding a decline in the open market price of the Ordinary
Shares. None of these persons may affect any stabilizing transaction to facilitate any offering at the market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have also advised the selling shareholders
that they should be aware that the anti-manipulation provisions of Regulation M under the Exchange Act will apply to purchases
and sales of Ordinary Shares by the selling shareholders, and that there are restrictions on market-making activities by persons
engaged in the distribution of the shares. 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, shares of our Ordinary Shares while such selling shareholders are distributing
shares covered by this prospectus. Regulation M may prohibit the selling shareholders from covering short sales by purchasing
shares while the distribution is taking place.. We have advised the selling shareholders that they should consult with their own
legal counsel to ensure compliance with Regulation M.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="description"></A><B>DESCRIPTION OF ORDINARY SHARES </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following is a summary description
of our Ordinary Shares under our Articles of Association.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Dividend and Liquidation Rights</B><I>. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">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&rsquo;s surplus assets upon winding up, all pro rata to the nominal value of the shares
held by them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Board of Directors may issue shares
and other securities, which are convertible or exercisable into shares, up to the limit of the Company&rsquo;s authorized share
capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company&rsquo;s Board of Directors
is the organ authorized to decide upon the distribution of dividends or bonus shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Voting, Shareholders&rsquo; Meetings, Notices and Resolutions.
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">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&#8531;% 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Unless otherwise determined by the Israeli
Companies Law 1999 or the Company&rsquo;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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Companies Law 1999 requires that
certain transactions, actions and arrangements be approved by shareholders, including (i) arrangements with a director and/or
the CEO 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; and (iii) any action or Extraordinary Transaction in which
the majority of the members of the Board of Directors have a personal interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Each shareholder of record is entitled
to receive at least a 21 day prior notice of shareholders&rsquo; 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Transfer of Shares</B><I>. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Modification of Class Rights</B>.<B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">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&rsquo; issue terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Election of Directors</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company&rsquo;s directors are elected
by the shareholders at a shareholders&rsquo; 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&rsquo; 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&rsquo;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&rsquo;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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="offeringexpe"></A><B>OFFERING EXPENSES </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; font: 10pt Times New Roman, Times, Serif; text-align: left">SEC registration fees</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">207.00</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; ">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Legal fees, Audit Fees and expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">10,000.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; ">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Miscellaneous expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,000.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; ">
    <TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt">TOTAL</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 4pt double">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 4pt double">15,207.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 4pt">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><A NAME="valiity"></A><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>VALIDITY
OF SECURITIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
validity of the Ordinary Shares offered in this prospectus, will be passed upon for us by Amit, Pollak, Matalon &amp; Co., our
Israeli counsel. Certain other legal matters relating to United States law will be passed upon for us by Phillips Nizer LLP, New
York, New York.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="experts"></A><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>EXPERTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
consolidated financial statements, included in our Annual Report on Form 20-F for the fiscal year ended December 31, 2014, 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 included therein.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="where"></A><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>WHERE
YOU CAN FIND MORE INFORMATION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 April
30 of each year.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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'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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 &quot;short-swing profits&quot;
reporting and liability provisions contained in Section 16 of the Exchange Act and related Exchange Act rules.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><A NAME="incorporation"></A><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>INCORPORATION
OF CERTAIN DOCUMENTS BY REFERENCE </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
SEC allows us to &quot;incorporate by reference&quot; 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.3in; padding: 0; text-align: justify; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(a)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
    annual report on Form 20-F for the fiscal year ended December 31, 2014, filed with the SEC on April 29, 2015. (SEC File No.
    001-14184);</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(b)</FONT></TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
    description of our Ordinary Shares contained in our registration statement on Form 8-A filed with the SEC on December 18,
    2006, including any amendment or report filed which updates such description; and</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD> &nbsp; </TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> (c) </FONT></TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Our
    Form 6-K reports filed with the SEC on May 28, 2015, June 11, 2015,&nbsp;&nbsp;and June 29, 2015 , July 14, 2015, July 15,
    2015 and August 6, 2015. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
addition, any reports on Form 6-K submitted&nbsp;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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">B.O.S.
    Better Online Solutions Ltd.</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">20
                                         Freiman Street</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Rishon
        LeZion, 75100, Israel</FONT></P></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 4%; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Tel.:</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(+972)
    3-954-1000</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Fax:</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(+972)
    3-954-1001</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Attn.:</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Eyal
    Cohen, CFO</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="enforce"></A><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>ENFORCEABILITY
OF CIVIL LIABILITIES </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&#9679;</B></FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the
    judgment is enforceable in the state in which it was given;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&#9679;</B></FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&#9679;</B></FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&#9679;</B></FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&#9679;</B></FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
subsidiary, Ruby-tech Inc. 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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><B>BOS
BETTER ONLINE SOLUTIONS LTD.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;<B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>609,813
of our Ordinary Shares offered by Selling Shareholders</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>PROSPECTUS</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 100%"><A HREF="#toc">Table of Contents</A></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>PART
II</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>INFORMATION
NOT REQUIRED IN PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>ITEM
8. INDEMNIFICATION OF DIRECTORS AND OFFICERS </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Israeli
Companies Law-1999, or the Companies Law, and the Israeli Securities Law &ndash; 1968, or the Securities Law, provides that a
company may include in its articles of association provisions allowing it to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">partially
    or fully, exempt in advance, an office holder of the company from his/her responsibility for damages caused by the breach
    of his/her duty of care to the company, except for damages caused to the Company due to any breach of such office holder's
    duty of care towards the company in a &ldquo;distribution&rdquo; (as defined in the Companies Law).</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">enter
    into a contract to insure the liability of an office holder of the company by reason of acts or omissions committed in his/her
    capacity as an office holder of the company with respect to the following:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(a)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the
    breach of his/her duty of care to the company or any other person;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(b)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the
    breach of his/her fiduciary duty to the company to the extent he/she acted in good faith and had a reasonable basis to believe
    that the act or omission would not prejudice the interests of the company;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(c)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">monetary
    liabilities or obligations which may be imposed upon him/her in favor of other persons;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(d)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">reasonable
    litigation expenses, including attorneys fees, incurred by the officer as a result of an ongoing administrative enforcement
    proceeding instituted against him in accordance with the Securities Law; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(e)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">a
    payment imposed on the office holder in favor of an injured party as set forth in the Securities Law.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3.</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">indemnify
    an office holder of the company for:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(a)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">monetary
    liabilities or obligations imposed upon, or actually incurred by, such officer holder in favor of other persons pursuant to
    a court judgment, including a compromise judgment or an arbitrator&rsquo;s decision approved by a court, by reason of acts
    or omissions of such office holder in his or her capacity as an office holder of the company;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(b)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">reasonable
    litigation expenses, including attorney&rsquo;s fees, actually incurred by such office holder or imposed upon him or her by
    a court, in an action, suit or proceeding brought against him or her by or on behalf of us or by other persons, or in connection
    with a criminal action from which he or she was acquitted, or in connection with a criminal action which does not require
    criminal intent in which he/she was convicted, in each case by reason of acts or omissions of such office holder in his or
    her capacity as an office holder; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(c)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">reasonable
    litigation expenses, including attorneys&rsquo; fees, actually incurred by such office holder due to an investigation or a
    proceeding instituted against such office holder by an authority competent to administrate such an investigation or proceeding,
    and that was finalized without the filing of an indictment against such office holder and without any financial obligation
    imposed on such office holder in lieu of criminal proceedings, or that was finalized without the filing of an indictment against
    such office holder but with financial obligation imposed on such office holder in lieu of criminal proceedings of a crime
    which does not require proof of criminal intent, in each case by reason of acts of such office holder in his or her capacity
    as an office holder of the company;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(d)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">expenses,
    including reasonable litigation expenses and attorneys&rsquo; fees, actually incurred by such office holder&nbsp;as a result
    of a proceeding instituted against such office holder&nbsp;in relation to infringements that may impose financial or administrative
    sanctions under the Securities Law; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(e)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">payments
    made by the office holder to an injured party ordered by the Administrative Enforcement Committee pursuant to an infringement
    under the Securities Law.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Companies
Law provides that a company&rsquo;s articles of association may provide for indemnification of an office holder post-factum and
may also provide that a company may undertake to indemnify an office holder in advance, as described in:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">i.</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">sub-section
    3(a) above, provided such undertaking is limited to and actually sets forth the occurrences, which, in the opinion of the
    company&rsquo;s board of directors based on the current activity of the company, are, at the time such undertaking is provided,
    foreseeable, and to an amount and degree that the board of directors has determined is reasonable for such indemnification
    under the circumstances; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">ii.</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">sub-sections
    3(b) and 3(c) above.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Securities
Law provides that a company&rsquo;s articles of association may provide that a company may undertake to indemnify an office holder
in advance, as described in sub-sections 3(d) and 3(e) above.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Companies
Law and Securities Law provide that a company may not indemnify or exempt the liabilities of an office holder or enter into an
insurance contract which would provide coverage for the liability of an office holder with respect to the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">a
    breach of his/her fiduciary duty, except to the extent described in sub-section 2(b) above;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">a
    breach of his/her duty of care, if such breach was done intentionally, recklessly or with disregard of the circumstances of
    the breach or its consequences, except if such breach is done only with negligence;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3.</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">an
    act or omission done with the intent to unlawfully realize personal gain;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">a
    fine or monetary settlement imposed upon him/her;&nbsp;or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">5.</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">an
    administrative proceeding instituted against the officer holder under the Securities Law, except as described in sub-sections
    3(d) and 3(e) above.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Under the
Companies Law, the term &quot;office holder&quot; may include a general manager or chief executive officer, executive vice president,
vice president or any other managers directly subordinate to the general manager or chief executive officer and any other person
fulfilling or assuming any such position or responsibility without regard to such person&rsquo;s title, or a director.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The grant
of an exemption, an undertaking to indemnify or indemnification of, and procurement of insurance coverage for, an office holder
of a company generally requires, pursuant to the Companies Law, the approval of our compensation committee and board of directors,
and, in certain circumstances, including,&nbsp;<I>inter alia</I>, if the office holder is a director or chief executive officer,
or if the proposed grant of exemption, undertaking to indemnify, or insurance coverage deviates from an approved office holder
compensation policy, the approval of our shareholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We have
entered into an insurance contract for directors and officers and have procured indemnification insurance for our office holders
to the extent permitted by our articles of association.&nbsp;We have never had the occasion to indemnify any of our office holders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>ITEM
9. EXHIBITS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; width: 8%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Exhibit
    No.</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 2%">&nbsp;</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; vertical-align: bottom; width: 90%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Description</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Standby
    Equity Distribution Agreement dated as of February 3, 2014 between YA Global Master SPV Ltd. and the Company (incorporated
    by reference to the Company&rsquo;s Report on Form 6-K filed with the SEC on February 6, 2014). </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; ">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> 4.2** </FONT></TD>
    <TD> &nbsp; </TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Share
    Purchase Agreement dated as of June 11, 2015 between YA Global Master SPV Ltd. and the Company. </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.3</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form
    of 2009 Loan Agreement and Registration Rights Agreement by and among certain lenders and the Company. Form of Warrant issued
    by the Company to certain lenders (incorporated by reference to the Company&rsquo;s Annual Report on Form 20-F filed on June
    30, 2010).</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; ">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.4</FONT></P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form
    of Agreement by and among certain lenders and the Company (Conversion Amendments); Form of Amendment to Warrant issued by
    the Company to certain lenders (incorporated by reference to the Company&rsquo;s Annual Report on Form 20-F filed on April
    30, 2012).</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.5</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Share
    Purchase Agreement dated as of October 4, 2010 between the Company and Telegraph Hill Capital Fund I, LLC (incorporated by
    reference to the Company&rsquo;s Annual Report on Form 20-F filed on June 30, 2011).</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; ">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.6</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Advisory
    Agreement dated September 1, 2009, by and between the Company and Telegraph Hill Group LLC (incorporated by reference to the
    Company&rsquo;s Annual Report on Form 20-F filed on April 30, 2013).</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.7</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Amendment
    Number 1 to Advisory Agreement dated November 16, 2009, by and between the Company and Telegraph Hill Group LLC (incorporated
    by reference to the Company&rsquo;s Annual Report on Form 20-F filed on April 30, 2013). </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; ">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif">4.8</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Amendment
                                         Number 2 to Advisory Agreement dated February 8, 2013, by and between the Company and
                                         Telegraph Hill Group LLC; Warrant issued by the Company to Telegraph Hill Capital Fund
                                         I, LLC (incorporated by reference to the Company&rsquo;s Annual Report on Form 20-F filed
                                         on April 30, 2013).</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"> 4.9 </P></TD>
    <TD> &nbsp; </TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Amendment
        Number 3 to Advisory Agreement dated November 7, 2013, by and between the Company and Telegraph Hill Group LLC. </FONT>
        (incorporated by reference to the Company&rsquo;s Annual Report on Form 20-F filed on April 14, 2015). </P></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; ">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> 5.1** </FONT></TD>
    <TD> &nbsp; </TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> 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 STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> 23.1** </FONT></TD>
    <TD> &nbsp; </TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Consent
    of Amit, Pollak, Matalon &amp; Co. (included in Exhibit 5.1). </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; ">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">23.2*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consent
    of Kost Forer Gabbay &amp; Kasierer, a Member Firm of Ernst &amp; Young Global.</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> 24.1** </FONT></TD>
    <TD> &nbsp; </TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Power
    of Attorney </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">* Filed
herewith.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> ** Previously
filed. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>ITEM
10. UNDERTAKINGS </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: left; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(a)</FONT></TD>
    <TD COLSPAN="2" STYLE="padding: 0; text-align: left; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
    undersigned registrant hereby undertakes:</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: left; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding: 0; text-align: left; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-align: left; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-align: left; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">To
    file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</FONT></TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: left; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(i)
To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: left; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: left; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(ii) 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 &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement; and</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: left; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: left; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iii) 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></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: left; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: left; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><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></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-align: left; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.3in; padding: 0; text-align: left; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: left; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: left; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(3)</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: left; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: left; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(4)</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: left; font: 10pt Times New Roman, Times, Serif; text-indent: 0; width: 0.3in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0; font: 10pt Times New Roman, Times, Serif; width: 0.3in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(5)</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">That,
    for the purpose of determining liability under the Securities Act of 1933 to any purchaser:</FONT></TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(i)</FONT></TD>
    <TD COLSPAN="2" STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
    the registrant is relying on Rule 430B:</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 0.75in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 0.3in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 0.3in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">A.</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">B.</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.</FONT></TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; padding: 0; text-align: left; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(b)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
    undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933,
    each filing of the registrant'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'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 STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: left; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: left; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(c)</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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 &quot;Item 8. Indemnification of Directors
    and Officers&quot; 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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SIGNATURES
</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> 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 registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the city of Rishon LeZion, in the State of Israel, on August 13, 2015. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>B.O.S. Better Online Solutions Ltd.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; width: 25%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; width: 5%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; width: 25%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding: 0 0 1.5pt; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>By:</B></FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/s/
Yuval Viner</FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/s/
    Eyal Cohen</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Name:</B></FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Yuval
    Viner</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Eyal
    Cohen</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Title:</B></FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief
    Executive Officer&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief
    Financial Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0; width: 39%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B> Signature </B></FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif; width: 2%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0; border-bottom: Black 1.5pt solid; width: 39%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B> Title </B></FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif; width: 2%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0; border-bottom: Black 1.5pt solid; width: 18%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B> Date </B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> * </TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Chairman
    of the Board of Directors </FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> August
                                         13, 2015 </TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Mr.
    Yosi Lahad </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> /s/
    Yuval Viner </FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Chief
    Executive Officer and Director </FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> August
    13, 2015 </TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Mr.
    Yuval Viner </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> (Principal
    Executive Officer) </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> /s/
    Eyal Cohen </FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Chief
    Financial Officer </FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> August
    13, 2015 </TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Mr.
    Eyal Cohen </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> (Principal
    Financial and Accounting Officer) </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> * </TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Director </FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> August
    13, 2015 </TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Mr.
    Avidan Zelicovsky </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> * </TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Director </FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> August
    13, 2015 </TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Ms.
    Odelia Levanon </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> * </TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Director </FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> August
    13, 2015 </TD></TR>
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    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Ms.
    Orit Nir Schwartz </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
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    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> * </TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Director </FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> August
    13, 2015 </TD></TR>
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    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Mr.
    David Golan </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> * </TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Director </FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> August
    13, 2015 </TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Mr.
    Luis Gutierrez Roy </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> * </TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Director </FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; font: 10pt Times New Roman, Times, Serif; padding-left: 0; text-align: center; text-indent: 0"> August
    13, 2015 </TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> Mr.
    Ziv Dekel </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD>
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> &nbsp; </FONT></TD></TR>
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    <TD STYLE="width: 4%"> *By: </TD>
    <TD STYLE="width: 36%; border-bottom: Black 1.5pt solid"> /s/ Eyal Cohen </TD>
    <TD STYLE="width: 60%"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD> &nbsp; </TD>
    <TD> Attorney-in-Fact </TD>
    <TD> &nbsp; </TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">II-6</P>

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<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>2
<FILENAME>ff32015a1ex23ii_bosbetter.htm
<DESCRIPTION>CONSENT OF KOST FORER GABBAY & KASIERER, A MEMBER FIRM OF ERNST & YOUNG GLOBAL
<TEXT>
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<P STYLE="font: 10pt/normal Times New Roman,serif; margin: 0; text-align: right; background-color: white"><B><U>Exhibit 23.2</U></B></P>

<P STYLE="font: 10pt/normal Times New Roman,serif; margin: 0; text-align: left; background-color: white; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman,serif; margin-top: 0; margin-bottom: 0; text-align: center; background-color: white">CONSENT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM</P>

<P STYLE="font: 10pt/normal Times New Roman,serif; margin: 0; text-align: left; background-color: white; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman,serif; margin: 0; text-align: left; background-color: white">We consent to the reference
to our firm under the caption &ldquo;Experts&rdquo; in this Registration Statement on Form F-3/A and related prospectus of B.O.S
Better Online Solutions Ltd. (&ldquo;BOS&rdquo;) and to the incorporation by reference therein of our report dated April 27, 2015
with respect to the consolidated financial statements of BOS included in its report on Form 20-F, filed with the Securities and
Exchange Commission on April 29, 2015.</P>

<P STYLE="font: 10pt/normal Times New Roman,serif; margin: 0; text-align: left; background-color: white; text-indent: 0.5in">&nbsp;</P>

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<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 60%; text-align: left; line-height: 115%; direction: rtl; unicode-bidi: embed; font-family: Calibri,sans-serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 40%; text-decoration: none; text-align: left; line-height: 115%;  font-family: Calibri,sans-serif; border-bottom: Black 1.5pt solid"><FONT STYLE="font: 10pt Times New Roman,serif">/s/
    KOST, FORER GABBAY &amp; KASIERER</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; line-height: 115%; direction: rtl; unicode-bidi: embed; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">Tel Aviv Israel</FONT></TD>
    <TD STYLE="text-align: left; line-height: 115%; direction: rtl; unicode-bidi: embed; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">KOST, FORER GABBAY &amp; KASIERER</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; line-height: 115%; direction: rtl; unicode-bidi: embed; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">August 13, 2015</FONT></TD>
    <TD STYLE="text-align: left; line-height: 115%; direction: rtl; unicode-bidi: embed; font-family: Calibri,sans-serif"><FONT STYLE="font: 10pt Times New Roman,serif">A Member of Ernst &amp; Young Global</FONT></TD></TR>
</TABLE>
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