<SEC-DOCUMENT>0001213900-17-010938.txt : 20171025
<SEC-HEADER>0001213900-17-010938.hdr.sgml : 20171025
<ACCEPTANCE-DATETIME>20171025152808
ACCESSION NUMBER:		0001213900-17-010938
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20171025
FILED AS OF DATE:		20171025
DATE AS OF CHANGE:		20171025

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:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14184
		FILM NUMBER:		171153013

	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>6-K
<SEQUENCE>1
<FILENAME>f6k102517_bosbetteronline.htm
<DESCRIPTION>REPORT OF FOREIGN PRIVATE ISSUER
<TEXT>
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<P STYLE="margin: 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">UNITED
STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Report
of Foreign Private Issuer</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to Rule 13a - 16 or 15d -16</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Securities Exchange Act of 1934</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the Month of October 2017</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Commission
file number 001-14184</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Translation
of Registrant&rsquo;s Name into English)</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>20
Freiman Street, Rishon LeZion, 75100, Israel </U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Address
of principal executive office)</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
20-F &#9746;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form 40-F &#9744;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ___________</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ___________</FONT></P>

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

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

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




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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Attached
hereto are the following exhibits:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 8%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.1</FONT></TD>
    <TD STYLE="width: 92%; padding: 0; text-align: justify; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><A HREF="f6k102517ex99-1_bosbetter.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
    Registrant&rsquo;s Notice of Meeting and Proxy Statement for the Annual General Meeting of Shareholders to be held on December
    5<SUP>th</SUP>, 2017.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.2</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><A HREF="f6k102517ex99-2_bosbetter.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Proxy Card.</FONT></A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf
by the undersigned, thereunto duly authorized.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">B.O.S. Better Online Solutions Ltd.</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-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Registrant)</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 56%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 40%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Eyal Cohen</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-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Eyal Cohen</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-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Co-Chief Executive Officer and Chief Financial
    Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated:
October 25, 2017</FONT></P>

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

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">EXHIBIT
INDEX</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 12%; font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">EXHIBIT
    NO.</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding: 0 0 1.5pt; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 87%; text-align: justify; font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DESCRIPTION</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-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><A HREF="f6k102517ex99-1_bosbetter.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
    Registrant&rsquo;s Notice of Meeting and Proxy Statement for the Annual General Meeting of Shareholders to be held on December
    5<SUP>th</SUP>, 2017.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.2</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><A HREF="f6k102517ex99-2_bosbetter.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Proxy Card.</FONT></A></TD></TR>
</TABLE>
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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>f6k102517ex99-1_bosbetter.htm
<DESCRIPTION>THE REGISTRANT'S NOTICE OF MEETING AND PROXY STATEMENT FOR THE ANNUAL GENERAL MEETING OF SHAREHOLDERS TO BE HELD ON DECEMBER 5TH, 2017
<TEXT>
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<P STYLE="margin-top: 0; text-align: right; margin-bottom: 0"><B>Exhibit 99.1</B></P>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rishon
Le Zion 75101</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTICE
OF ANNUAL GENERAL MEETING OF SHAREHOLDERS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>To
Be Held on December 5, 2017</B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">You
are invited to attend an Annual Meeting of Shareholders of B.O.S. Better Online Solutions Ltd. (the &ldquo;<B>Company</B>&rdquo;)
to be held at the Comp any's offices, at 20 Freiman&nbsp;Street,&nbsp;Rishon LeZion, Israel&nbsp;on <B>December 5, 2017 </B>at
4:00 P.M. local time, and thereafter as it may be adjourned from time to time (the &ldquo;<B>Meeting</B>&rdquo;) for the following
purposes:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         re-elect Yosi Lahad, Odelia Levanon, Avidan Zelicovsky, Yuval Viner, David Golan and
                                         Ziv Dekel, and to elect Revital Cohen, to serve as directors on the Company&rsquo;s Board
                                         of Directors, until the next annual general meeting of shareholders and until their successors
                                         have been duly elected and qualified.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         approve an increase in the authorized share capital and to amend the Company&rsquo;s
                                         Memorandum of Association and Articles of Association, accordingly.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         approve an increase to the number of options available for issuance under the Company&rsquo;s
                                         2003 Israeli Share Option Plan.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         approve the compensation and a grant of options for the Company&rsquo;s directors who
                                         are not employees or service providers (except for the Active Chairman).</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         approve the 2017-2018 compensation plan for the Active Chairman.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         approve the 2017 compensation plan for the President.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         approve the 2017 compensation plan for the Company's Co-CEO (Yuval Viner).</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         approve the 2017 compensation plan for Company's Co-CEO and CFO (Eyal Cohen).</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         appoint Fahn Kanne, a member of Grant Thornton, as the Company's Independent Auditors
                                         for the year ending December 31, 2017, and for such additional period until the next
                                         annual general meeting of shareholders.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         review the Auditor's Report and the Company's Consolidated Financial Statements for the
                                         fiscal year ended December 31, 2016.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Board of Directors has fixed the close of business on October 30, 2017 as the date for determining the holders of record of Ordinary
Shares entitled to notice of and to vote at the Meeting and any adjournments thereof.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><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-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-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Proposals
1, 3-6 and 9 are ordinary resolutions, which require the affirmative vote of a majority of the Ordinary Shares of the Company
voted in person or by proxy at the Meeting on the matter presented for passage. The votes of all shareholders voting on the matter
will be counted.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Proposal
2 is a special resolution, which requires the affirmative vote of the holders of 75% of the Ordinary Shares present, or represented,
and voting thereon at the Meeting. The votes of all shareholders voting on the matter will be counted.&#9;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Proposals
7-8 are special resolutions, which require&nbsp;the affirmative vote of a majority of the shares present, in person or by proxy,
and voting on the matter, provided that either: (i) at least a majority of the voted shares of shareholders who are not Controlling
shareholders and who do not have a personal interest in the resolution are voted in favor of the resolution, disregarding abstentions;
or (ii) the total number of shares of shareholders, who are not Controlling shareholders and who do not have a personal interest
in the resolution, voted against the resolution does not exceed two percent (2%) of the outstanding voting power in the Company.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">&ldquo;Controlling&rdquo;
for the purpose of the preceding paragraph means the ability to direct the acts of the Company.&nbsp;&nbsp;Any person holding
twenty five percent (25%) or more of the voting power of the Company or the right to appoint directors or the Chief Executive
Officer is presumed to have control of the Company.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">A
&ldquo;personal interest&rdquo; is defined as a shareholder&rsquo;s personal interest in the approval of an act or a transaction
of the Company, including (i) the personal interest of his or her relative (which includes any members of his/her (or his/her
spouse's) immediate family or the spouses of any such members of his or her (or his/her spouse's) immediate family); and (ii)
a personal interest of a body corporate in which a shareholder or any of his/her aforementioned relatives serves as a director
or the chief executive officer, owns at least 5% of its issued share capital or its voting rights or has the right to appoint
a director or chief executive officer, but excluding a personal interest arising solely from holding of shares in the Company.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Each
shareholder voting at the Meeting or prior thereto by means of the accompanying Proxy Card is requested to indicate if he, she
or it has a Personal Interest in connection with a certain proposal. If any shareholder casting a vote does not explicitly indicate
on the proxy card that he, she or it has a Personal Interest with respect to a certain proposal where such indication is required,
then the vote on the applicable item shall not be counted.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">The
grant of options to the Active Chairman, President, Co-CEO (Yuval Viner) and Co-CEO and CFO (Eyal Cohen) proposed in resolutions
5-8, is subject to the approval of the increase to the number of options available for issuance under the Company&rsquo;s 2003
Israeli Share Option Plan, proposed for approval in resolution 3. </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">The
review of our audited Consolidated Financial Statements for the fiscal year ended December 31, 2016 described in Proposal 10 does
not involve a vote of our shareholders.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Further
details of these matters to be considered at the Meeting are contained in the attached Proxy Statement. Copies of the resolutions
to be adopted at the Meeting will be available to any shareholder entitled to vote at the meeting for review at the Company&rsquo;s
offices during regular business hours. </FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: normal 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: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Board of Directors believes that the shareholders of the Company should be represented as fully as possible at the Meeting and
encourages your vote. Whether or not you plan to be present kindly complete, date and sign the enclosed proxy card exactly as
your name appears on the envelope containing this Notice of Annual General Meeting and mail it promptly so that your votes can
be recorded. No postage is required if mailed in the United States. Return of your proxy does not deprive you of your right to
attend the Meeting, to revoke the proxy or to vote your shares in person. All proxy instruments and powers of attorney must be
delivered to the Company no later than 48 hours prior to the Meeting. The Company&rsquo;s Proxy Statement is furnished herewith.
The presence, in person or by proxy, of at least two shareholders holding at least 33&#8531;% of the voting rights, will constitute
a quorum at the Meeting.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Joint
holders of Ordinary Shares should take note that, pursuant to Article 14.13 of the Articles of Association of the Company, the
vote of the senior of joint holders of any share who tenders a vote, whether in person or by proxy, will be accepted to the exclusion
of the vote(s) of the other joint holder(s) of the share, and for this purpose seniority will be determined by the order in which
the names stand in the shareholders&rsquo; register.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 210.35pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Position
Statements</B>. Shareholders may send the Company position statements on an agenda item in English, no later than November 25,
2017.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 210.35pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By
Order of the Board of Directors,</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 210.35pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yosi
Lahad,</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chairman
of the Board of Directors&#9;</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">YOUR
VOTE IS IMPORTANT. WHETHER OR NOT YOU EXPECT TO ATTEND THE MEETING, PLEASE DATE AND SIGN THE PROXY CARD AND RETURN IT PROMPTLY
IN THE ENCLOSED ENVELOPE FOR WHICH NO POSTAGE IS REQUIRED IF MAILED IN THE UNITED STATES. YOU CAN LATER REVOKE YOUR PROXY, ATTEND
THE MEETING AND VOTE YOUR SHARES IN PERSON. ALL PROXY INSTRUMENTS AND POWERS OF ATTORNEY MUST BE DELIVERED TO THE COMPANY NO LATER
THAN 48 HOURS PRIOR TO THE MEETING.</FONT></P>

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


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

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rishon
Le Zion 75101</FONT></P>

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ANNUAL
GENERAL MEETING OF SHAREHOLDERS</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
be held on December 5, 2017</FONT></P>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">This
Proxy Statement is furnished to the holders of Ordinary Shares, NIS 80.00 nominal value (the &ldquo;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ordinary
Shares<FONT STYLE="font-weight: normal">&rdquo;), of B.O.S. Better Online Solutions Ltd. (&ldquo;</FONT>BOS<FONT STYLE="font-weight: normal">&rdquo;
or the &ldquo;</FONT>Company<FONT STYLE="font-weight: normal">&rdquo;) in connection with the solicitation of proxies to be voted
at the Annual General Meeting of Shareholders of the Company (the &ldquo;</FONT>Meeting<FONT STYLE="font-weight: normal">&rdquo;)
to be held in Israel at the Company&rsquo;s offices at 20 Freiman&nbsp;Street,&nbsp;Rishon LeZion, Israel&nbsp;on </FONT>December
5, 2017 <FONT STYLE="font-weight: normal">at 4:00 P.M. local time, and thereafter as it may be adjourned from time to time. </FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>At
the Meeting, shareholders of the Company will be asked to vote upon the following matters:</B></FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         re-elect Yosi Lahad, Odelia Levanon, Avidan Zelicovsky, Yuval Viner, David Golan and
                                         Ziv Dekel, and to elect Revital Cohen, to serve as directors on the Company&rsquo;s Board
                                         of Directors, until the next annual general meeting of shareholders and until their successors
                                         have been duly elected and qualified.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -21.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         approve an increase in the authorized share capital and to amend the Company&rsquo;s
                                         Memorandum of Association and Articles of Association, accordingly.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         approve an increase to the number of options available for issuance under the Company&rsquo;s
                                         2003 Israeli Share Option Plan.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         approve the compensation and a grant of options for the Company&rsquo;s directors who
                                         are not employees or service providers (except for the Active Chairman).</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         approve the 2017-2018 compensation plan for the Active Chairman.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         approve the 2017 compensation plan for the President.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         approve the 2017 compensation plan for the Company's Co-CEO (Yuval Viner).</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         approve the 2017 compensation plan for Company's Co-CEO and CFO (Eyal Cohen).</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         appoint Fahn Kanne, a member of Grant Thornton, as the Company's Independent Auditors
                                         for the year ending December 31, 2017, and for such additional period until the next
                                         annual general meeting of shareholders.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                         review the Auditor's Report and the Company's Consolidated Financial Statements for the
                                         fiscal year ended December 31, 2016.</FONT></TD></TR></TABLE>

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

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

<!-- Field: Page; Sequence: 4; Value: 2 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">A
proxy card for use at the Meeting and a return envelope for the proxy card are enclosed. By signing the proxy card, shareholders
may vote their shares at the Meeting whether or not they attend. Upon the receipt of a properly signed and dated proxy card in
the form enclosed, the shares represented thereby shall be voted in accordance with the instructions of the shareholder indicated
thereon, or, if no direction is indicated, (but the shareholder did indicate that it does not have a personal interest where required),
then in accordance with the recommendations of the Board of Directors. The Company knows of no other matters to be submitted at
the Meeting other than as specified in the Notice of the Annual General Meeting of Shareholders enclosed with this Proxy Statement.
Shares represented by executed and unrevoked proxies will be voted. On all matters considered at the Meeting, abstentions and
broker non-votes will not be treated as either a vote &ldquo;for&rdquo; or &ldquo;against&rdquo; the matter, although they will
be counted to determine if a quorum is present. </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
proxy solicited hereby may be revoked at any time prior to its exercise, by the substitution with a new proxy bearing a later
date or by a request for the return of the proxy at the Meeting. All proxy instruments and powers of attorney must be delivered
to the Company no later than 48 hours prior to the Meeting.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">The
Company expects to mail this Proxy Statement and the enclosed form of proxy card to shareholders on or about November 2, 2017.
All expenses of this solicitation will be borne by the Company. In addition to the solicitation of proxies by mail, directors,
officers and employees of the Company, without receiving additional compensation therefore, may solicit proxies by telephone,
facsimile, in person or by other means. Brokerage firms, nominees, fiduciaries and other custodians have been requested to forward
proxy solicitation materials to the beneficial owners of shares of the Company held of record by such persons, and the Company
will reimburse such brokerage firms, nominees, fiduciaries and other custodians for reasonable out-of-pocket expenses incurred
by them in connection therewith.</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shareholders
Entitled to Vote<FONT STYLE="font-weight: normal">. Only holders of record of Ordinary Shares at the close of business on October
30, 2017 are entitled to notice of and to vote at the Meeting. The Company had 3,356,689 Ordinary Shares issued and outstanding
on October 15, 2017. Each Ordinary Share is entitled to one vote on each matter to be voted on at the Meeting. The Articles of
Association of the Company do not provide for cumulative voting for the election of the directors or for any other purpose. The
presence, in person or by proxy, of at least two shareholders holding at least 33&#8531;% of the voting rights, will constitute
a quorum at the Meeting.</FONT></FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Votes
Required<FONT STYLE="font-weight: normal">. </FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Proposals
1, 3-6 and 9 are ordinary resolutions, which require the affirmative vote of a majority of the Ordinary Shares of the Company
voted in person or by proxy at the Meeting on the matter presented for passage. The votes of all shareholders voting on the matter
will be counted. </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Proposal
2 is a special resolution, which requires the affirmative vote of the holders of 75% of the Ordinary Shares present, or represented,
and voting thereon at the Meeting. The votes of all shareholders voting on the matter will be counted.&#9;</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: normal 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: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Proposals
7-8 are special resolutions, which require&nbsp;the affirmative vote of a majority of the shares present, in person or by proxy,
and voting on the matter, provided that either: (i) at least a majority of the voted shares of shareholders who are not Controlling
shareholders and who do not have a personal interest in the resolution are voted in favor of the resolution, disregarding abstentions;
or (ii) the total number of shares of shareholders, who are not Controlling shareholders and who do not have a personal interest
in the resolution, voted against the resolution does not exceed two percent (2%) of the outstanding voting power in the Company.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">&ldquo;Controlling&rdquo;
for the purpose of the preceding paragraph means the ability to direct the acts of the Company.&nbsp;&nbsp;Any person holding
twenty five percent (25%) or more of the voting power of the Company or the right to appoint directors or the Chief Executive
Officer is presumed to have control of the Company.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">A
&ldquo;personal interest&rdquo; is defined as: a shareholder&rsquo;s personal interest in the approval of an act or a transaction
of the Company, including (i) the personal interest of his or her relative (which includes any members of his/her (or his/her
spouse's) immediate family or the spouses of any such members of his or her (or his/her spouse's) immediate family); and (ii)
a personal interest of a body corporate in which a shareholder or any of his/her aforementioned relatives serves as a director
or the chief executive officer, owns at least 5% of its issued share capital or its voting rights or has the right to appoint
a director or chief executive officer, but excluding a personal interest arising solely from holding of shares in the Company.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Each
shareholder voting at the Meeting or prior thereto by means of the accompanying Proxy Card is requested to indicate if he, she
or it has a Personal Interest in connection with a certain proposal. If any shareholder casting a vote does not explicitly indicate
on the proxy card that he, she or it has a Personal Interest with respect to a certain proposal where such indication is required,
then the vote on the applicable item shall not be counted.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">The
grant of options to Active Chairman, President, Co-CEO (Yuval Viner) and Co-CEO and CFO (Eyal Cohen) proposed in resolutions 5-8,
is subject to the approval of the increase to the number of options available for issuance under the Company&rsquo;s 2003 Israeli
Share Option Plan proposed for approval in resolution 3. </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">The
review of our audited Consolidated Financial Statements for the fiscal year ended December 31, 2016 described in Proposal 10 does
not involve a vote of our shareholders.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Further
details of these matters to be considered at the Meeting are contained in the attached Proxy Statement. Copies of the resolutions
to be adopted at the Meeting will be available to any shareholder entitled to vote at the meeting for review at the Company&rsquo;s
offices during regular business hours. </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Board of Directors believes that the shareholders of the Company should be represented as fully as possible at the Meeting and
encourages your vote. Whether or not you plan to be present kindly complete, date and sign the enclosed proxy card exactly as
your name appears on the envelope containing this Notice of Annual General Meeting and mail it promptly so that your votes can
be recorded. No postage is required if mailed in the United States. Return of your proxy does not deprive you of your right to
attend the Meeting, to revoke the proxy or to vote your shares in person. All proxy instruments and powers of attorney must be
delivered to the Company no later than 48 hours prior to the Meeting. The Company&rsquo;s Proxy Statement is furnished herewith.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><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-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-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Joint
holders of Ordinary Shares should take note that, pursuant to Article 14.13 of the Articles of Association of the Company, the
vote of the senior of joint holders of any share who tenders a vote, whether in person or by proxy, will be accepted to the exclusion
of the vote(s) of the other joint holder(s) of the share, and for this purpose seniority will be determined by the order in which
the names stand in the shareholders&rsquo; register.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 210.35pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Position
Statements</B>. Shareholders may send the Company position statements on an agenda item in English, no later than November 25,
2017.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 210.35pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By
Order of the Board of Directors,</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 210.35pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yosi
Lahad,</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chairman
of the Board of Directors&#9;</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">YOUR
VOTE IS IMPORTANT. WHETHER OR NOT YOU EXPECT TO ATTEND THE MEETING, PLEASE DATE AND SIGN THE PROXY CARD AND RETURN IT PROMPTLY
IN THE ENCLOSED ENVELOPE FOR WHICH NO POSTAGE IS REQUIRED IF MAILED IN THE UNITED STATES. YOU CAN LATER REVOKE YOUR PROXY, ATTEND
THE MEETING AND VOTE YOUR SHARES IN PERSON. ALL PROXY INSTRUMENTS AND POWERS OF ATTORNEY MUST BE DELIVERED TO THE COMPANY NO LATER
THAN 48 HOURS PRIOR TO THE MEETING.</FONT></P>

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


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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>PRINCIPAL SHAREHOLDERS; EXECUTIVE COMPENSATION</U></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
the best of the Company&rsquo;s knowledge, as of October 15, 2017, there is no shareholder that is the beneficial owner of more
than five percent (5%) of the Company&rsquo;s outstanding Ordinary Shares.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Summary
Compensation Table</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table outlines the compensation granted to our most highly compensated office holders during or with respect to the
year ended December 31, 2016.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
purposes of the table and the summary below, &ldquo;compensation&rdquo; includes base salary, discretionary and non-equity incentive
bonuses, equity-based compensation, payments accrued or paid in connection with retirement or termination of employment, and personal
benefits and perquisites such as car and social benefits paid to or earned by each listed executive during the year ended December
31, 2016.</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid; vertical-align: bottom">Name</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">Position</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Salary Cost</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Bonus</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Value of Equity Awards</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Other Compensation*</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 11%; text-align: left; vertical-align: top">Avidan Zelicovsky <BR></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 28%; text-align: left">President and head of the Supply Chain division</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">223,230</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">20,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">37,650</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,732</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">287,612</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; vertical-align: top">Yuval Viner</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Co-CEO and head of the RFID and Mobile division</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">216,328</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">35,754</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">6,035</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">278,117</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; vertical-align: top">Eyal Cohen</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Co-CEO and CFO</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">191,425</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">29,921</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,713</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">249,059</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; vertical-align: top">Uzi Parizat</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">VP Sales &amp; Marketing, RFID and Mobile Division</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">156,285</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10,286</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,433</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,600</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">178,604</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; vertical-align: top">Danny Lavi</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">VP operation, Supply Chain Division</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">85,515</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,108</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">12,575</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">99,198</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.2pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">*
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;car expenses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.2pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">                                                                                                                                                                                                                                                                                                                                                                                                                                 <TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>II.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>RESOLUTIONS</U></B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ELECTION
                                         OF DIRECTORS</B></FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">At
the Meeting, the shareholders are requested to re-elect Yosi Lahad, Odelia Levanon, Avidan Zelicovsky, Yuval Viner, David Golan
and Ziv Dekel, and to elect Revital Cohen, to serve as directors on the Company&rsquo;s Board of Directors, until the next annual
general meeting of shareholders and until their successors have been duly elected and qualified.</FONT></P>

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

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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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-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Regulation
5D of the Israeli Companies Regulations (Reliefs for Public Companies whose Shares are Listed on a Stock Exchange Outside of Israel),
2000 provides that a public company with securities listed on the Nasdaq Capital Market and has no controlling shareholder, may
elect to be exempt from the requirements under the Israeli Companies Law, to appoint external directors or regarding the composition
of the audit and compensation committees. The exemption is available, provided the company satisfies the requirements applicable
to domestic US issuers in these matters.</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">On
October 16, 2017 our Board of Directors established that we comply with the requirements applicable to US issuers listed on Nasdaq
in connection with a majority of independent directors on the Board of Directors and with the composition of each of the audit
committee and compensation committee, and determined to adopt the exemption. Consequently, Mr. David Golan and Ms. Orit Nir Schwartz
are no longer classified as external directors under the Israeli Companies Law, 5759-1999 (the &ldquo;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Israeli
Companies Law<FONT STYLE="font-weight: normal">&rdquo;). They shall continue to serve on the Board until the expiration of their
original term of office (January 8, 2018) or, for Mr. Golan, until such later date, if reelected to the Board at the Company&rsquo;s
upcoming shareholders meeting.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Pursuant
to the Company&rsquo;s Articles of Association, the number of directors in the Company shall be determined from time to time by
the annual general meeting, provided that it shall neither be less than four nor more than eleven.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">The
Israeli Companies Law provides that a nominee for a position of a director shall have declared to the Company that he or she complies
with the qualifications prescribed by the Israeli Companies Law for appointment as a director. All of the proposed nominees have
declared to the Company that they comply with such qualifications. </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">The
seven nominees named in this Proposal 1, if elected, shall each hold office until the next annual general meeting of shareholders
and until their respective successors are duly elected and qualified, unless any office is vacated earlier. The Company is unaware
of any reason why any nominee, if elected, should be unable to serve as a director. All nominees listed below have advised the
Board of Directors that they intend to serve as directors if elected. </FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nominees
for the Board of Directors</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Set
forth below is information about each nominee, including age, position(s) held with the company, principal occupation, business
history and other directorships held. </FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 45%; font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; 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; unicode-bidi: embed; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Age</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 44%; font: 10pt Times New Roman, Times, Serif; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Position</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Yosi Lahad <SUP>(1)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: center; unicode-bidi: embed; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">62</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chairman
    of the Board of Directors</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Yuval Viner <SUP>(2)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: center; unicode-bidi: embed; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">55</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Avidan Zelicovsky <SUP>(3)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: center; unicode-bidi: embed; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">48</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ms.
    Odelia Levanon <SUP>(4)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: center; unicode-bidi: embed; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">55</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Ziv Dekel<SUP>(5)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: center; unicode-bidi: embed; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">54</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    David Golan</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: center; unicode-bidi: embed; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">77</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ms.
    Revital Cohen<SUP>(6)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: center; unicode-bidi: embed; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">41</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-align: justify;  unicode-bidi: embed; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(1)</SUP></FONT></TD>
    <TD STYLE="text-align: justify; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Yosi Lahad holds options to purchase 17,375 of the
Company's Ordinary Shares, which he received upon his appointment as a director.</FONT></TD></TR>
</TABLE>


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

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(2)</SUP></FONT></TD>
    <TD STYLE="text-align: justify; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Yuval Viner holds 19,127 Ordinary Shares of the
Company, of which 16,288 were issued to him pursuant to a private investment consummated on June 2015, and options to purchase
73,750 of the Company's Ordinary Shares, which he received as an officer.</FONT></TD></TR>
</TABLE>


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

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><SUP>(3)</SUP></FONT></TD>
    <TD STYLE="text-align: justify; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Mr. Zelicovsky holds options
to purchase 70,000 of the Company&rsquo;s Ordinary Shares, which he received as an officer.</FONT></TD></TR>
</TABLE>


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

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(4)</SUP></FONT></TD>
    <TD STYLE="text-align: justify; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ms. Odelia Levanon holds 349 of the Company's Ordinary
Shares, which she received as director fees and options to purchase 5,000 of the Company's Ordinary Shares, which she received
upon her appointment as a director.</FONT></TD></TR>
</TABLE>


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

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(5)</SUP></FONT></TD>
    <TD STYLE="text-align: justify; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Ziv Dekel holds options to purchase 5,000 of the
Company's Ordinary Shares, which he received upon his appointment as a director.</FONT></TD></TR>
</TABLE>


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

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(6)</SUP></FONT></TD>
    <TD STYLE="text-align: justify; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ms. Revital Cohen holds 55,100 Company Shares, which
she purchased on the market.</FONT></TD></TR>
</TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><B>Mr.
Yosi Lahad</B>&nbsp;has joined our Board of Directors on April 13, 2014 and was appointed as Chairman in January 26, 2015. </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
Lahad has extensive interdisciplinary practical and academic knowledge and vast experience in restructuring processes and strategic
alliances. Mr. Lahad has led as CEO or Chairman several technology companies from early stage to growth and led several M&amp;A
events in the United States, Israel and China. Mr. Lahad provides strategic and business development services to global companies
in a variety of industries including communications, IT, energy, water, Homeland security &amp; robotics. Mr. Lahad serves as
an Active Chairman or Board member of several companies such as JPI Group China, a leading strategic planning firm for companies
entering the Chinese market, UPO, a provider for innovative analytics of information over Internet, and VPlan, and NextWave Robotics
among others. Previously, Mr. Lahad served as the country Managing Director of Tadiran&rsquo;s operations in China and as a Division
VP at ELBIT Systems. Mr. Lahad had been a faculty member/Adjunct Professor lecturing on strategy of emerging companies and innovation
at the &nbsp;&nbsp;Interdisciplinary Center (a joint program with Wharton school of business at University of Pennsylvania) and
at Tel-Aviv University from 2005. Mr. Lahad holds a BSc. in engineering from the Technion, an MSc. in engineering from the University
of Texas (UTA) and an MBA from Tel Aviv University.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><B>Mr.
Yuval Viner</B> was appointed as the Company acting CEO on October 20, 2009, as CEO on March 17, 2010 and joined our Board of
Directors on June 29, 2015. Mr. Viner joined the Company as part of its acquisition of the assets of Dimex Systems (1988) Ltd.
in March 2008, and since then has also served as the head of our RFID and Mobile Solutions division. Mr. Viner joined Dimex Systems
(1988) Ltd. in 1993 and was appointed as Dimex System&rsquo;s CEO in 2000. Mr. Viner is a graduate of the Practical Engineering
Academy of Tel Aviv. </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><B>Mr.
Avidan Zelicovsky</B>&nbsp;was appointed as the Company acting president in October 20, 2009, as president on March 17, 2010 and
joined our Board of Directors on June 29, 2015. From November 2004, following the acquisition of Odem by BOS, Mr. Zelicovsky served
as the head of our Supply Chain Solutions division. Mr. Zelicovsky first joined Odem in 1996. Mr. Zelicovsky holds a B.A. in Business
Administration from the Tel Aviv College of Management and an LL.M. from Bar-Ilan University.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><B>Ms.
Odelia Levanon</B> joined our Board of Directors in November 2015. Ms. Levanon served as the Chief Information Officer of Irani
Group, a leading Israeli importer and wholesaler of fashion brands from 2014 to September 2017. Ms. Levanon has served as the
Chief Executive Officer of a venture capital fund, from 2012 to 2014 and as the Chief Information Officer and head of the technology
division of Mega retail from 2000 to 2012. She also serves as a board member of the Old Jaffa Development Company Ltd. and has
served as a member of the Board of You &ndash; loyalty club from 2008 to 2012. Since 2016, Ms. Levanon is a lecturer on management
in the field of information systems in the Israel Academic College in Ramat Gan. Ms. Levanon holds an M.Sc. in Computer Sciences
and a B.Sc. in Mathematics and Computer Sciences, both from Tel Aviv University.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><B>Mr.
Ziv Dekel </B>joined our Board of Directors on June 29, 2015. Mr. Dekel has over 25 years of management and strategic counseling
experience. Since 2010, Mr. Dekel provides strategic advisory services to various business entities. In 1989, Mr. Dekel joined
Shaldor Strategy Counseling as an analyst, and from 2002 through 2010 served as Shaldor's CEO and Managing Partner. Mr. Dekel
holds a BA in Economics and an MBA, both from Tel-Aviv University.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Mr.
David Golan</B> has been an External Director of the Company (within the meaning of the Israeli Companies Law) since February
2009. He currently serves as a director in several companies, both public and private. Previously, until 2002, he served as an
Executive Director of a group of companies in the Rad-Bynet group. In the years 1998-2000 he served as President of the Zeevi
Investments group. Between 1997-1998, Mr. Golan served as President of Clal Trading Ltd. and between 1992-1997 he served as a
Vice President in Clal Trading Ltd. Between the years 1988-1992, Mr. Golan served as managing director of Gal Industries Ltd.
Mr. Golan holds a bachelor&rsquo;s degree in Economics and Statistics from the Hebrew University, an MBA from New York University
and took part in a senior management course in IMD Lausaunne.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Ms.
Revital Cohen</B> in a new nominee to our Board of Directors. Since 2011, Ms. Cohen has been a consultant to companies in various
fields such as business planning, finance, IT and human resources. Prior to 2011, Ms. Cohen was a senior consultant with Step
Economic Consutling Ltd. Ms. Cohen holds a bachelor&rsquo;s degree in Sociology and Education, and master&rsquo;s degree in Organizational
Studies from the Hebrew University in Jerusalem. Ms. Cohen is a sister-in-law of Mr. Eyal Cohen, the Company&rsquo;s Co-CEO and
CFO.</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Compensation
of Directors and Officers</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table presents the total compensation paid to or accrued on behalf of all of our directors and officers as a group for
the year ended December 31, 2016:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Salaries, Directors' fees, Service fees, Commissions and Bonus</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Pension, Retirement and Similar benefits</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: justify">All directors and officers as a group (then 9 persons)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">835,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">98,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">At
the Meeting, the Board of Directors proposes that the following resolution be adopted:</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">&ldquo;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">RESOLVED<FONT STYLE="font-weight: normal">,
to re-elect Yosi Lahad, Odelia Levanon, Avidan Zelicovsky, Yuval Viner, David Golan and Ziv Dekel, and to elect Revital Cohen,
to serve as directors on the Board of Directors, until the next annual general meeting of shareholders and until their successors
have been duly elected and qualified.&rdquo;</FONT></FONT></P>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vote
Required</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 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-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
affirmative vote of the holders of a majority of the voting power represented at the Meeting in person or by proxy is necessary
for the approval of the foregoing resolution.</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>INCREASE
                                         OF SHARE CAPITAL</B></FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Currently,
the authorized share capital of the Company is NIS 320,000,000 consisting of 4,000,000 Ordinary Shares NIS 80.00 nominal value
per share, of which 3,356,689 are outstanding. In addition, 239,125 Ordinary Shares are reserved for issuance pursuant to options
granted under the Company's 2003 Share Option Plan. As a result the Company has 404,186 Ordinary Shares available for future issuances.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
the meeting of the Board of Directors held on October 16, 2017, the Board members approved an increase of the authorized share
capital of the Company by additional 500,000 shares, so that immediately following such increase the total authorized share capital
of the Company would be NIS 360,000,000, consisting of 4,500,000 Ordinary Shares, NIS 80.00 nominal value per share.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
increase in authorized share capital would allow the Company to meet its future business needs as they arise. These purposes could
include, among other things, the sale of shares in public and private offerings to raise additional capital, the purchase of property
or assets, the acquisition of other companies, the use of shares for various equity compensation and other employee benefit plans
and arrangements, the declaration of share dividends, and other bona fide corporate purposes.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since
January 2017 until the date of this proxy statement, the Company issued 354,096 Ordinary Shares in financing transactions, which
generated gross proceeds of $627,972. On May 8, 2017, the Company entered into a Standby Equity Distribution Agreement (&ldquo;<B>SEDA</B>&rdquo;),
with YA Global Master SPV Ltd. (&ldquo;<B>YA</B>&rdquo;) for the sale of up to $2,000,000, of its Ordinary Shares to YA. In connection
with the SEDA, the Company granted to YA as a commitment fee 67,307 Ordinary shares.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company intends to engage in additional equity financings in the future, subject to market conditions, and to consider acquisitions
and other transactions pursuant to which Ordinary Shares would be issued as such opportunities arise.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
additional authorized Ordinary Shares would have rights identical to the Company&rsquo;s Ordinary Shares currently outstanding.
Approval of the proposed increase in the number of authorized Ordinary Shares and any issuance of Ordinary Shares would not affect
the rights of existing holders of the Company&rsquo;s Ordinary Shares, except for the effects incidental to increasing the outstanding
number of Ordinary Shares, such as dilution of earnings per share, if any, and voting rights of existing holders of Ordinary Shares.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
authorized, the additional Ordinary Shares may be issued with approval of the Board of Directors but without further approval
of shareholders, unless shareholder approval is required by applicable law, rule or regulation. Our ordinary shareholders do not
have preemptive rights with respect to future issuances of Ordinary Shares. Thus, should the Board of Directors elect to issue
additional Ordinary Shares, the Company&rsquo;s existing shareholders will not have any preferential rights to purchase such shares
and such issuance could have a dilutive effect on the voting power and percentage ownership of these shareholders.</FONT></P>

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

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<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: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Board recommends that at the Meeting, the shareholders approve an increase of the authorized share capital of the Company by an
additional NIS 40,000,000, comprised of 500,000 Ordinary Shares, NIS 80.00 nominal value per share.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Following
the proposed increase in the authorized share capital, the total authorized share capital of the Company would be NIS 360,000,000,
consisting of 4,500,000 Ordinary Shares, NIS 80.00 nominal value per share.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">At
the Meeting, the Board of Directors will propose that the following resolution be adopted:</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">&ldquo;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">RESOLVED<FONT STYLE="font-weight: normal">,
to approve an increase of 500,000 Ordinary Shares in the Company's authorized share capital, following which the Company's authorized
share capital shall be NIS 360,000,000, divided into 4,500,000 Ordinary Shares, nominal value NIS 80.00 per Share. Concurrently
with the share capital increase, it is hereby resolved to amend article 4.1 of the Company&rsquo;s Articles of Association and
section 4 of the Company&rsquo;s Memorandum of Association, to reflect the share capital increase effected.&rdquo;</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Vote
Required</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">The
affirmative vote of the holders of 75% of the voting power represented at the Meeting in person or by proxy and voting thereon
is necessary for the approval of the foregoing resolution.</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>3.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>INCREASE
                                         OF THE OPTION POOL &nbsp;</B></FONT></TD></TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Under
the 2003 Israeli Share Option Plan,&nbsp;employees, directors, consultants and service providers of the Company or its subsidiaries
may be offered an opportunity to acquire Ordinary Shares of the Company. The Board of Directors has approved (subject to Shareholder
approval) to increase the number of options available for issuance under the Company&rsquo;s 2003 Israeli Share Option Plan, by
125,000 to a total of 500,000. This 2003 Plan is the only active plan from which options are being granted. As of October 15,
2017, the total number of options reserved under the 2003 Plan is 375,000, of which only 67,183 options are available for future
grants. The increase is required also to allow for the grant of options to the Directors, Active Chairman, President, Co-CEO (Yuval
Viner) and Co-CEO and CFO (Eyal Cohen) proposed in resolutions 5-8 below. Following the increase and assuming the grant of the
options proposed to be granted immediately following the Meeting (i.e. to members of the management and to Mr. David Golan), the
Company shall have an amount of 127,183 options available for future grants under its 2003 Israeli Share Option Plan.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
the Meeting, the Board of Directors will propose that the following resolution be adopted:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&ldquo;<B>RESOLVED</B>,
to approve&nbsp;an increase of the number of options available for issuance under the Company&rsquo;s 2003 Israeli Share Option
Plan, by 125,000 to a total of 500,000.&rdquo;</FONT></P>

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

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<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"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Vote
Required</B></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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
affirmative vote of the holders of a majority of the voting power represented at the Meeting in person or by proxy is necessary
for the approval of the foregoing resolution.</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B>4.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>COMPENSATION
                                         PLAN FOR NON-EMPLOYEE DIRECTORS (EXCLUDING THE ACTIVE CHAIRMAN)</B></FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Our
Compensation Committee and Board of Directors have approved compensation and a one-time grant of options for directors, who are
not employees or service providers of the Company (excluding the Active Chairman), as shall be elected from time to time, as follows:</FONT></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%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Annual compensation in a total amount of NIS 29,270 (approximately $8,360) shall be paid in cash on a quarterly basis and an additional NIS 2,175 (approximately $620) for each Board and Board committee meeting attended (or 60% of the attendance fee for a Board meeting held via teleconference or 50% of such fee for a meeting held without convening). </FONT></TD></TR>
</TABLE>


<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%; 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: 0.25in; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Grant
    of 7,500 options to purchase Ordinary Shares. The Options shall be granted to those directors elected or re-elected by the
    shareholders, provided three years have lapsed since the previous grant of options to such director, and to future directors
    elected for the first time to the Board of Directors. The Grant Date will be the date of approval of appointment or reappointment
    of the director by the shareholders meeting. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
options shall be granted pursuant to the Company's 2003 Share Options Plan and have the following terms: </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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: 0.25in; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exercise
    price: the weighted average closing price of the Ordinary Shares on the NASDAQ during the 20 trading days preceding the Grant
    Date.</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vesting
    schedule: the options will vest and become exercisable over a period of three years, in three equal parts, such that one third
    of the options shall vest on each of the first, second and third anniversary of the Grant Date, provided that the director
    is still serving on the Company&rsquo;s Board of Directors at the applicable vesting date.</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
    options shall expire on the fifth anniversary of the Grant Date.</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Payment
    of the exercise price must be made in full upon exercise of the options, by cash or check or cash equivalent, or by the assignment
    of the proceeds of a sale of some or all of the Ordinary Shares being acquired upon exercise of options, or by any combination
    of the foregoing.</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
options are exercisable only by the director, and may not be assigned or transferred except following approval of the Company&rsquo;s
Audit Committee or Compensation Committee, as applicable, by will or by the laws of descent and distribution. The options shall
be exercisable during the term the director holds office (up to five years) or within 60 days following termination of this position,
with certain exceptions in the case of the death or disability.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
proposed compensation complies with the Company&rsquo;s existing Compensation Policy.</FONT></P>

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

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<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: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
proposed grant of options complies with the limits on equity grants to the Company's officers and directors, as set in the Company'
existing Compensation Policy.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
the Meeting, the Board of Directors will propose that the following resolution be adopted:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&ldquo;<B>RESOLVED</B>,
to approve <FONT STYLE="background-color: white">the compensation </FONT>and one-time grant of options <FONT STYLE="background-color: white">for
non-employee directors (excluding the Active Chairman), as described in this Proxy Statement&rdquo;.</FONT></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">&nbsp;</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; background-color: white">The
affirmative vote of the holders of a majority of the voting power represented at the Meeting in person or by proxy is necessary
for the approval of the foregoing resolution.</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B>5.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2017-2018
                                         COMPENSATION PLAN FOR THE COMPANY'S ACTIVE CHAIRMAN</B></FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal; text-transform: uppercase">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shareholders
are asked to approve a compensation plan for the Company's Active Chairman, Mr. Yosi Lahad, for the fiscal years 2017 and 2018.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.45pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
compensation plan is comprised of an annual payment of NIS 110,000 <FONT STYLE="background-color: white">(approximately $34,300)</FONT>,
paid in cash in 2017 (an increase of NIS 10,000 from the payment in 2016) and NIS 120,000 paid in cash in 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.45pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.45pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, <FONT STYLE="background-color: white">Mr. Lahad shall be granted 25,500 options to purchase Ordinary Shares. </FONT>The
Grant Date will be the approval of the reappointment of Mr. Lahad to the Board of Directors at the shareholders meeting of 2018
(at which time, three years will have lapsed since the previous grant of options to Mr. Lahad). The option terms shall be the
same terms as described above for the options granted to Non-Employee Directors (provided that vesting shall be subject to holding
the office of Active Chairman on the applicable date). The Active Chairman shall not be entitled to any additional compensation
for participation in Board meetings (i.e. attendance fees).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.45pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
proposed compensation for the Active Chairman complies with the Company's compensation policy.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
Compensation Committee and the Board of Directors approved the terms of the compensation plan for the Active Chairman described
above.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
the Meeting, the Board of Directors proposes that the following resolutions be adopted:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">&ldquo;<B>RESOLVED</B>,
to approve the compensation plan for the Active Chairman, as described in this Proxy Statement&rdquo;.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Vote
Required</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
affirmative vote of the holders of a majority of the voting power represented at the Meeting in person or by proxy is necessary
for the approval of the foregoing resolution.</FONT></P>

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

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<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 CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>6.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2017
                                         COMPENSATION PLAN AND GRANT OF OPTIONS OF THE PRESIDENT</B></FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Shareholders
are asked to approve a compensation plan for the Company&rsquo;s President, Mr. Avidan Zelicovsky, who is also a director of the
Company, for the fiscal year 2017. The compensation plan is comprised of a bonus plan and a grant of options, and was approved
by the Compensation Committee and the Board of Directors.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">With
respect to the bonus plan: the Board of Directors believes that structuring the bonus plan on the basis of a combination of the
following measurements and targets is most appropriate for the Company for the foreseeable future, as the Company seeks to grow
both its revenues and profitability. The following table shows the proposed compensation per target for the President:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">Measurement</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">2017 Target that entitles to a Bonus</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Bonus payable upon Achievement</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 25%; text-align: center; vertical-align: top">Company's Forecast</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 62%; text-align: left">Growth in revenues as compared to year 2016, and a net profit of $0.5 million, on a GAAP basis (after reflecting the cost of the bonus).</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">10,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center; vertical-align: top">Profit Target in Budget</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Meet the Company&rsquo;s targeted Net GAAP profit in year 2017 (after reflecting the cost of the bonus).</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">12,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">In
addition, in special circumstances, the Board of Directors may grant the President a bonus irrespective of the achievements of
the profit targets, provided such bonus is capped at a one month salary.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">As
provided in our Compensation Policy, the total annual bonus for the President is capped at five (5) monthly salaries. The Board
of Directors may reduce any bonus payable to the President by up to 20%, at its discretion. </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Under
his existing employment agreement, Mr. Zelicovsky, the President, is entitled to a gross monthly base salary of NIS 44,472 (approximately
$12,700) linked to the CPI, plus customary benefits which include, among others, managers' insurance, education fund, car expenses
and long-term disability insurance.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
proposed compensation plan for the President described above complies with the Company's current Compensation Policy. </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><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-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-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">In
addition to the bonus plan, the Shareholders are asked to approve a grant to the President of options to purchase 20,000 of the
Company&rsquo;s Ordinary Shares, under the following terms:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top">&#9679;</TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exercise
                                         price: the weighted average closing price of the Ordinary Shares on the NASDAQ during
                                         the 20 trading days preceding the date of the approval of the proposed grant by the shareholders
                                         of the Company.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top">&#9679;</TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vesting
                                         schedule: the options will vest and become exercisable over a period of three years,
                                         in three equal parts, such that one third of the options shall vest on each of the first,
                                         second and third anniversary of the date of approval of the grant by Meeting, provided
                                         that the President is still holding office with the at the applicable vesting date.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top">&#9679;</TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                         options shall expire on the fifth anniversary of the date of approval by the shareholders
                                         of their grant.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
Compensation Committee and the Board of Directors approved the terms of the compensation plan for the President described above.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
the Meeting, the Board of Directors proposes that the following resolutions be adopted:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">&ldquo;<B>RESOLVED</B>,
that the bonus plan for the President for fiscal year 2017, as described in this Proxy Statement, be approved in all respects&rdquo;;
and further</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">&ldquo;<B>RESOLVED</B>,
to approve the grant to the President of options to purchase 20,000 Ordinary Shares of the Company, in accordance with the terms
described in this Proxy Statement&rdquo;.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Vote
Required</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
affirmative vote of the holders of a majority of the voting power represented at the Meeting in person or by proxy is necessary
for the approval of the foregoing resolution.</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>7.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2017
                                         COMPENSATION PLAN AND GRANT OF OPTIONS TO THE CO-CHIEF EXECUTIVE OFFICER (MR. YUVAL VINER)</B></FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Shareholders
are asked to approve a compensation plan for the Company&rsquo;s Co-Chief Executive Officer, Yuval Viner, for the fiscal year
2017. The Compensation Plan is comprised of a bonus plan and a grant of options, and was approved by the Compensation Committee
and the Board of Directors.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">With
respect to the bonus plan: the Board of Directors believes that structuring the bonus plan on the basis of a combination of the
following measurements and targets is most appropriate for the Company for the foreseeable future, as the Company seeks to grow
both its revenues and profitability. The following table shows the proposed compensation per each target for the Co-Chief Executive
Officer:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">Measurement</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">2017 Target that entitles to a Bonus</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Bonus payable upon Achievement</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 25%; text-align: center; vertical-align: top">Company's Forecast</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 62%; text-align: justify">Growth in revenues as compared to year 2016, and a net profit of $0.5 million, on a GAAP basis (after reflecting the cost of the bonus).</TD><TD STYLE="width: 1%; font-weight: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: normal; text-align: left">$</TD><TD STYLE="width: 9%; font-weight: normal; text-align: right">10,000</TD><TD STYLE="width: 1%; font-weight: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;Profit Target in Budget <BR></TD><TD STYLE="font-weight: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; text-align: justify">Meet the Company&rsquo;s targeted Net GAAP profit in year 2017 (after reflecting the cost of the bonus).</TD><TD STYLE="font-weight: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; text-align: left">$</TD><TD STYLE="font-weight: normal; text-align: right">12,000</TD><TD STYLE="font-weight: normal; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><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-align: justify; text-indent: 0.5in; background-color: white"><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: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">In
addition, in special circumstances, the Board may grant the Co-Chief Executive Officer a bonus irrespective of the achievements
of the net profit targets, provided such bonus is capped at a one month salary.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">As
provided in our Compensation Policy, the total annual bonus for the Co-Chief Executive Officer is capped at five (5) monthly salaries.
The Board of Directors may reduce any bonus payable to the Co-Chief Executive Officer by up to 20%, at its discretion.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Under
his existing employment agreement, Mr. Viner, the Co-Chief Executive Officer, is entitled to a gross monthly base salary of NIS
43,692 (approximately $12,480) linked to the CPI, plus customary benefits which include, among others, managers' insurance, education
fund, car expenses and long-term disability insurance. </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
proposed compensation plan for the Co-Chief Executive Officer described above complies with the Company's current Compensation
Policy.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">In
addition to the bonus plan, the Shareholders are asked to approve a grant to the Chief Executive Officer of options to purchase
20,000 of the Company&rsquo;s Ordinary Shares, under the following terms:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exercise
                                         price: the weighted average closing price of the Ordinary Shares on the NASDAQ during
                                         the 20 trading days preceding the date of the approval of the proposed grant by the Meeting.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vesting
                                         schedule: the options will vest and become exercisable over a period of three years,
                                         in three equal parts, such that one third of the options shall vest on each of the first,
                                         second and third anniversary of the date of approval of the grant by the shareholders
                                         of the Company, provided that the Co-Chief Executive Officer is still holding office
                                         with the Company at the applicable vesting date.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                         options shall expire on the fifth anniversary of the date of approval by the Meeting.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
Compensation Committee and the Board of Directors approved the terms of the compensation plan for the Co-Chief Executive Officer
described above.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</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">At
the Meeting, the Board of Directors proposes that the following resolutions be adopted:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">&ldquo;<B>RESOLVED</B>,
that the bonus plan for the Co-Chief Executive Officer (Mr. Viner) for fiscal year 2017, as described in this Proxy Statement,
be approved in all respects&rdquo;; and further</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">&ldquo;<B>RESOLVED</B>,
to approve the grant to the Co-Chief Executive Officer (Mr. Viner) of options to purchase 20,000 Ordinary Shares of the Company,
in accordance with the terms described in this Proxy Statement.&rdquo;</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Vote
Required</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Under
the Israeli Companies Law, the approval of the above resolutions requires the affirmative vote of a majority of the shares present,
in person or by proxy, and voting on the matter, provided that either: (i) at least a majority of the voted shares of shareholders
who are not Controlling shareholders and who do not have a personal interest in the resolution are voted in favor of the resolution;
or (ii) the total number of shares of shareholders, who are not Controlling shareholders and who do not have a personal interest
in the resolution, voted against the resolution does not exceed two percent (2%) of the outstanding voting power in the Company.</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>8.</B></FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2017
                                         COMPENSATION PLAN AND GRANT OF OPTIONS OF THE CO-CHIEF EXECUTIVE OFFICER AND CFO (MR.
                                         EYAL COHEN)</B></FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Shareholders
are asked to approve a compensation plan for the Company&rsquo;s Co-Chief Executive Officer and CFO, Eyal Cohen, for the fiscal
year 2017. The Compensation Plan is comprised of a bonus plan and a grant of options, and was approved by the Compensation Committee
and the Board of Directors.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">With
respect to the bonus plan: the Board of Directors believes that structuring the bonus plan on the basis of a combination of the
following measurements and targets is most appropriate for the Company for the foreseeable future, as the Company seeks to grow
both its revenues and profitability. The following table shows the proposed compensation per each target for the Co-Chief Executive
Officer and CFO:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">Measurement</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">2017 Target that entitles to a Bonus</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Bonus payable upon Achievement</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 25%; text-align: center; vertical-align: top">Company's Forecast</TD><TD STYLE="width: 1%; font-weight: normal">&nbsp;</TD>
    <TD STYLE="width: 62%; font-weight: normal; text-align: justify">Growth in revenues as compared to year 2016, and a net profit of $0.5 million, on a GAAP basis (after reflecting the cost of the bonus).</TD><TD STYLE="width: 1%; font-weight: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: normal; text-align: left">$</TD><TD STYLE="width: 9%; font-weight: normal; text-align: right">10,000</TD><TD STYLE="width: 1%; font-weight: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;Profit Target in Budget <BR></TD><TD STYLE="font-weight: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; text-align: justify">Meet the Company&rsquo;s targeted Net GAAP profit in year 2017 (after reflecting the cost of the bonus).</TD><TD STYLE="font-weight: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; text-align: left">$</TD><TD STYLE="font-weight: normal; text-align: right">12,000</TD><TD STYLE="font-weight: normal; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">In
addition, in special circumstances, the Board may grant the Co-Chief Executive Officer and CFO a bonus irrespective of the achievements
of the net profit targets, provided such bonus is capped at a one month salary.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">As
provided in our Compensation Policy, the total annual bonus for the Co-Chief Executive Officer and CFO is capped at five (5) monthly
salaries. The Board of Directors may reduce any bonus payable to the Co-Chief Executive Officer and CFO by up to 20%, at its discretion.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Under
his existing employment agreement, Mr. Cohen, the Co-Chief Executive Officer and CFO, is entitled to a gross monthly base salary
of NIS 41,387 (approximately $11,820) linked to the CPI, plus customary benefits which include, among others, managers' insurance,
education fund, car expenses and long-term disability insurance. </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
proposed compensation plan for the Co-CEO and CFO described above complies with the Company's current Compensation Policy.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">In
addition to the bonus plan, the Shareholders are asked to approve a grant to the Co-CEO and CFO of options to purchase 20,000
of the Company&rsquo;s Ordinary Shares, under the following terms:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exercise
                                         price: the weighted average closing price of the Ordinary Shares on the NASDAQ during
                                         the 20 trading days preceding the date of the approval of the proposed grant by the Meeting.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vesting
                                         schedule: the options will vest and become exercisable over a period of three years,
                                         in three equal parts, such that one third of the options shall vest on each of the first,
                                         second and third anniversary of the date of approval of the grant by the Meeting, provided
                                         that the Co-Chief Executive Officer is still holding office with the Company at the applicable
                                         vesting date.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"></TD><TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                         options shall expire on the fifth anniversary of the date of approval by the Meeting.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
Compensation Committee and the Board of Directors approved the terms of the compensation plan for the Co-CEO and CFO described
above.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
the Meeting, the Board of Directors proposes that the following resolutions be adopted:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">&ldquo;<B>RESOLVED</B>,
that the bonus plan for the Co-CEO and CFO (Mr. Cohen) for fiscal year 2017, as described in this Proxy Statement, be approved
in all respects&rdquo;; and further</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">&ldquo;<B>RESOLVED</B>,
to approve the grant to the Co-CEO and CFO of options to purchase 20,000 Ordinary Shares of the Company, in accordance with the
terms described in this Proxy Statement.&rdquo;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Vote
Required</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Under
the Israeli Companies Law, the approval of the above resolutions requires the affirmative vote of a majority of the shares present,
in person or by proxy, and voting on the matter, provided that either: (i) at least a majority of the voted shares of shareholders
who are not Controlling shareholders and who do not have a personal interest in the resolution are voted in favor of the resolution;
or (ii) the total number of shares of shareholders, who are not Controlling shareholders and who do not have a personal interest
in the resolution, voted against the resolution does not exceed two percent (2%) of the outstanding voting power in the Company.</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">APPOINTMENT
OF NEW INDEPENDENT AUDITORS</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.65pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">The
Board of Directors recommends that the shareholders appoint Fahn Kanne, a member of Grant Thornton, as the independent auditors
of the Company for the year ending December 31, 2017, and for such additional period, until the next annual general meeting of
shareholders.</FONT></P>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Fahn
Kanne will replace the current independent auditors of the Company, Kost, Forer, Gabbay &amp; Kasierer, a member of Ernst &amp;
Young International Ltd. (hereinafter &ldquo;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">E&amp;Y<FONT STYLE="font-weight: normal">&rdquo;).
Our audit committee has approved and recommends this replacement.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">The
reports of E&amp;Y on the financial statements of the Company for the two years ended December 31, 2015 and 2016 contained no
adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principle.
</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">During
the period January 1, 2015 and to date, there have been no disagreements with E&amp;Y on any matter of accounting principles or
practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction
of E&amp;Y, would have caused them to make reference to the subject matter of the disagreements in connection with its reports
on the financial statements for such years; or &ldquo;reportable events&rdquo; as that term is described in Item 304(a)(1)(v)
of Regulation S-K.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">During
the Company&rsquo;s two most recent fiscal years and prior to the date of their engagement, the Company did not consult with Fahn
Kanne&nbsp;regarding: (i) the application of accounting principles to a specified transaction, either completed or proposed, (ii)
the type of audit opinion that might be rendered on the Company&rsquo;s financial statements, or (iii) any other matter that was
either the subject of a disagreement or a reportable event as set forth in Items 304(a)(1)(iv) and 304(a)(1)(v) of Regulation
S-K.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
table below summarizes the audit and other fees paid and accrued by the Company and its consolidated subsidiaries to E&amp;Y during
each of 2015 and 2016:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended<BR> December 31, <BR>
2016</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended<BR> December 31, <BR>
2015</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percentage</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percentage</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Audit Fees <SUP>(1)</SUP></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">76,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">89</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">76,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">89</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tax Fees <SUP>(2)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All Other Fees <SUP>(3)</SUP></FONT></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">6</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">6</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 4pt">Total</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">85,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">100</TD><TD STYLE="padding-bottom: 4pt; text-align: left">%</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">85,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">100</TD><TD STYLE="padding-bottom: 4pt; text-align: left">%</TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 4%; text-align: justify;  unicode-bidi: embed; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>&nbsp;(1)</SUP></FONT></TD>
    <TD STYLE="text-align: justify;  unicode-bidi: embed; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Audit
    fees are fees for audit services for each of the years shown in this table, including fees associated with the annual audit,
    services provided in connection with audit of our internal control over financial reporting and audit services provided in
    connection with other statutory or regulatory filings.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 4%; text-align: justify;  unicode-bidi: embed; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(2)</SUP></FONT></TD>
    <TD STYLE="text-align: justify;  unicode-bidi: embed; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tax
    fees are fees for professional services rendered by our auditors for tax compliance, tax planning and tax advice on actual
    or contemplated transactions</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 4%; text-align: justify;  unicode-bidi: embed; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(3)</SUP></FONT></TD>
    <TD STYLE="text-align: justify;  unicode-bidi: embed; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; vertical-align: top; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
    fees are fees for professional services other than audit or tax related fees.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><B>Audit
Committee&rsquo;s pre-approval policies and procedures:</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
Audit Committee is responsible for the oversight of the independent auditors&rsquo; work, including the approval of services provided
by the independent auditors. These services may include audit, audit-related, tax or other services, as described above. On an
annual basis, the audit committee may pre-approve audit and non-audit services to be provided to the Company by its auditors,
and set a budget for such services. Additional services not covered by the annual pre-approval may be approved by the Audit Committee
on a case-by-case basis as the need for such services arises. Any services pre-approved by the Audit Committee must be permitted
by applicable law. </FONT></P>

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

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<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: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">At
the Meeting, the Board of Directors will propose that the following resolution be adopted:</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">&ldquo;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">RESOLVED<FONT STYLE="font-weight: normal">,
that Fahn Kanne be, and they hereby are, appointed as independent auditors of the Company for the year ending December 31, 2017
and for such additional period until the next Annual General Meeting of shareholders.&rdquo;</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><B>Vote
Required</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
affirmative vote of the holders of a majority of the voting power represented at the Meeting in person or by proxy is necessary
for the approval of the foregoing resolution.</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">REVIEW
OF AUDITOR&rsquo;S REPORT AND FINANCIAL STATEMENTS</FONT></TD>
</TR></TABLE>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">At
the Meeting, the Auditor&rsquo;s Report and the Consolidated Financial Statements of the Company for the fiscal year ended December
31, 2016 will be presented for review. The Company&rsquo;s Audited Consolidated Financial Statements were filed by the Company
with the U.S. Securities and Exchange Commission on Form 20-F on March 27, 2017, and appear on its website: </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">www.sec.gov
<FONT STYLE="font-weight: normal">as well as on the Company&rsquo;s website: </FONT>www.boscorporate.com<FONT STYLE="font-weight: normal">.
These financial statements are not a part of this Proxy Statement.&nbsp;This item will not involve a vote of the shareholders.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; text-indent: -35.45pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; text-indent: -35.45pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>OTHER
BUSINESS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">The
Meeting is called for the purposes set forth in the Notice accompanying this Proxy Statement. As of the date of the Notice, the
Board of Directors knows of no business which will be presented for consideration at the Meeting other than the foregoing matters.
However, if any other business properly comes before the Meeting, the persons named in the enclosed proxy will vote upon such
matters in accordance with their best judgment.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Shareholder
Proposals for the Annual Meeting</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal">Any
shareholder of the Company who intends to present a proposal at the Meeting must satisfy the requirements of the Israeli Companies
Law. For a shareholder proposal to be considered for inclusion in the Meeting, we must receive the written proposal in English
at our offices no later than November 1, 2017.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By
Order of the Board of Directors,</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 210.35pt; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yosi
Lahad,</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chairman
of the Board of Directors</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">October
25, 2017</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">22</FONT></P>

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

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>f6k102517ex99-2_bosbetter.htm
<DESCRIPTION>FORM OF PROXY CARD
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0; text-align: right; font: 10pt Times New Roman, Times, Serif; color: Black"><FONT STYLE="color: Black"><B>Exhibit 99.2</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; color: Black"><FONT STYLE="color: Black"><B>ANNUAL
GENERAL MEETING OF SHAREHOLDERS OF</B></FONT></P>

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

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; color: Black"><FONT STYLE="color: Black"><B>B.O.S.
BETTER ONLINE SOLUTIONS LTD.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; color: Black"><FONT STYLE="color: Black"><B>December
5, 2017</B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1in; text-align: justify; text-indent: 0; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">e-Consent
makes it easy to go paperless. With e-Consent, you can quickly access your proxy material, statements and other eligible documents
online, while reducing costs, clutter and paper waste. Enroll today via www.amstock.com to enjoy online access.</FONT></P>

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

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; color: Black"><FONT STYLE="color: Black">Please
sign, date and mail your proxy card in the</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; color: Black"><FONT STYLE="color: Black">envelope
provided as soon as possible.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt; color: Black"><FONT STYLE="font-family: Wingdings; color: Black">&ecirc;
</FONT><FONT STYLE="color: Black">Please detach along perforated line and mail in the envelope provided. <FONT STYLE="font-family: Wingdings">&ecirc;</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 3pt; color: Black"><FONT STYLE="color: Black"><IMG SRC="symbol.jpg" ALT="">&nbsp;</FONT></P>

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



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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt; color: Black"><FONT STYLE="color: Black"><B>THE
BOARD OF DIRECTORS RECOMMENDS A VOTE &quot;FOR&quot; ALL PROPOSALS.</B></FONT></P>

<P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; color: Black"><FONT STYLE="color: Black"><B>PLEASE SIGN, DATE AND RETURN
PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE <FONT STYLE="font-family: Wingdings">&#120;</FONT></B></FONT></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 6pt; margin-bottom: 6pt; color: Black"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid; width: 100%; color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; color: Black"></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%; color: Black">
<TR STYLE="vertical-align: top; color: Black">
    <TD COLSPAN="6" STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">1. Proposal to re-elect
    Yosi Lahad, Odelia Levanon, Avidan Zelicovsky, Yuval Viner, David Golan and Ziv Dekel, and to elect Revital Cohen, to serve
    as directors on the Company&rsquo;s Board of Directors, until the next annual general meeting of shareholders and until their
    successors have been duly elected and qualified.</FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><P STYLE="margin-top: 0; margin-bottom: 0; color: Black"></P>
        <P STYLE="margin-top: 0; margin-bottom: 0; color: Black"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></P>
        <P STYLE="margin-top: 0; margin-bottom: 0; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">5.</FONT></P></TD>
    <TD STYLE="color: Black"><P STYLE="margin-top: 0; margin-bottom: 0; color: Black"></P>
        <P STYLE="margin-top: 0; margin-bottom: 0; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></P>
        <P STYLE="margin-top: 0; margin-bottom: 0; color: Black"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt">Proposal to approve the
2017-2018 compensation plan for the Active Chairman.</FONT></P>



<P STYLE="margin-top: 0; margin-bottom: 0; color: Black"></P></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">FOR</FONT></P>
        <P STYLE="margin-top: 0; margin-bottom: 0; text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></P></TD>
    <TD STYLE="text-align: center; color: Black"><P STYLE="margin-top: 0; margin-bottom: 0; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">AGAINST&nbsp;</FONT></P>
                                              <P STYLE="margin-top: 0; margin-bottom: 0; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></P></TD>
    <TD STYLE="color: Black"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">ABSTAIN</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></P></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="width: 3%; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 23%; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 6%; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 6%; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%; padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 32%; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; width: 6%; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 6%; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">FOR&nbsp;ALL&nbsp;NOMINESS</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Yosi Lahad Odelia</FONT><FONT STYLE="color: Black"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Levanon Avidan</FONT></FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">6.</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Proposal to approve the 2017 compensation
    plan for the President.</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">WITHHOLD&nbsp;AUTHORITY</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="color: Black"><P STYLE="margin: 0pt 0; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Zelicovsky
                    Yuval</FONT></P>


</TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="color: Black"><P STYLE="margin: 0pt 0; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">FOR
                    ALL NOMINEES</FONT></P>

</TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="color: Black"><P STYLE="margin-top: 0; margin-bottom: 0; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Viner
                    David Golan</FONT><FONT STYLE="color: Black"><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Ziv
                    Dekel Revital</FONT></FONT></P>
                    <P STYLE="margin-top: 0; margin-bottom: 0; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Cohen</FONT></P></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">7.</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Proposal to approve the 2017 compensation
    plan for the Company's Co-CEO (Yuval Viner).</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; color: Black; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">IMPORTANT:
        Please indicate if you have a &quot;Personal Interest&quot; in the above Proposal 7 by marking an &quot;X&quot; in the
        one of the boxes to the right. Your vote will not be counted if you do not fill in one of the boxes to the right.</FONT></P>



</TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">YES</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">NO</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; color: Black; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">I
        HAVE A PERSONAL INTEREST</FONT></P>



</TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">FOR</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">AGAINST</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">ABSTAIN</FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">FOR</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">AGAINST</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">ABSTAIN</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">2.</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Proposal to approve an increase
    in the authorized share capital and to amend the Company&rsquo;s Memorandum of Association and Articles of Association, accordingly.</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">8.</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Proposal to approve the 2017 compensation
    plan for Company's Co-CEO and CFO (Eyal Cohen).</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;
    &#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"></TD>
    <TD STYLE="text-align: center; color: Black"></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">3.</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Proposal to approve an increase
    to the number of options available for issuance under the Company&rsquo;s 2003 Israeli Share Option Plan. </FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; color: Black; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">IMPORTANT:
        Please indicate if you have a &quot;Personal Interest&quot; in the above Proposal 8 by marking an &quot;X&quot; in the
        one of the boxes to the right. Your vote will not be counted if you do not fill in one of the boxes to the right.</FONT></P>



</TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">YES</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">NO</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom; color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom; color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">4.</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Proposal to approve the compensation
    and a grant of options for the Company&rsquo;s directors who are not employees or service</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; color: Black; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">I
        HAVE A PERSONAL INTEREST</FONT></P>



</TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-size: 8pt; color: Black">providers (except for the Active Chairman).</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">FOR</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">AGAINST</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">ABSTAIN</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="border-bottom: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">9.</FONT></TD>
    <TD STYLE="text-align: justify; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Proposal
    to appoint Fahn Kanne, a member of Grant Thornton, as the Company's Independent Auditors for the year ending December 31,
    2017, and for such additional period until the next annual general meeting of shareholders.</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="border-top: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; border-top: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; border-top: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; border-top: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; border-top: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="border-right: Black 1.5pt solid; border-top: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD COLSPAN="5" STYLE="border-bottom: Black 1.5pt solid; color: Black"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">To
                                         change the address on your account, please check the box at right and indicate your new
                                         address in the address space above. Please note that changes to the registered name(s)
                                         on the account may not be submitted via this method.</FONT></P>


</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&#9744;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; border-right: Black 1.5pt solid; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 2pt; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0; color: Black"></P>

<P STYLE="margin: 0; color: Black"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; color: Black">
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="width: 16%; font-size: 10pt; padding: 0; text-indent: 0; text-align: left; vertical-align: bottom; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Signature
    of Shareholder</FONT></TD>
    <TD STYLE="width: 21%; border: black 1.5pt solid; padding: 0; text-indent: 0; text-align: left; vertical-align: bottom; color: Black"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; font-size: 10pt; padding: 0; text-indent: 0; text-align: left; vertical-align: bottom; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Date:</FONT></TD>
    <TD STYLE="width: 8%; border: black 1.5pt solid; padding: 0; text-indent: 0; text-align: left; vertical-align: bottom; color: Black"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 16%; font-size: 10pt; padding: 0; text-indent: 0; text-align: left; vertical-align: bottom; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Signature
    of Shareholder</FONT></TD>
    <TD STYLE="width: 21%; border: black 1.5pt solid; padding: 0; text-indent: 0; text-align: left; vertical-align: bottom; color: Black"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; padding: 0; text-indent: 0; font-size: 10pt; text-align: left; vertical-align: bottom; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Date:</FONT></TD>
    <TD STYLE="width: 8%; border: black 1.5pt solid; padding: 0; text-indent: 0; text-align: left; vertical-align: bottom; color: Black"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
</TABLE>


<P STYLE="margin: 0; color: Black"></P>

<P STYLE="margin: 0; color: Black"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; color: Black">
<TR STYLE="vertical-align: top; color: Black">
    <TD STYLE="width: 0.25in; text-align: left; vertical-align: bottom; color: Black"><FONT STYLE="color: Black"><IMG SRC="symbol.jpg" ALT=""></FONT></TD>
    <TD STYLE="width: 0.5in; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black"><B>Note:</B></FONT></TD>
    <TD STYLE="text-align: justify; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt; color: Black">Please
    sign exactly as your name or names appear on this Proxy. When shares are held jointly, each holder should sign. When signing
    as executor, administrator, attorney, trustee or guardian, please give full title as such. If the signer is a corporation,
    please sign full corporate name by duly authorized officer, giving full title as such. If signer is a partnership, please
    sign in partnership name by authorized person.</FONT></TD>
    <TD STYLE="width: 0.25in; text-align: right; vertical-align: bottom; color: Black"><FONT STYLE="color: Black"><IMG SRC="symbol.jpg" ALT=""></FONT></TD></TR>
</TABLE>


<P STYLE="margin: 0; color: Black"></P>

<!-- Field: Page; Sequence: 2 -->
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0; color: Black"></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; color: Black"><FONT STYLE="color: Black"><B>Form
of Proxy Card</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; color: Black"><FONT STYLE="color: Black"><B>PROXY
FOR ANNUAL GENERAL MEETING OF SHAREHOLDERS TO BE HELD DECEMBER 5, 2017</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; color: Black"><FONT STYLE="color: Black"><B>THIS
PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 74.3pt 0pt 75.3pt; text-align: center; color: Black"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 2.65pt; margin-bottom: 0pt; text-align: justify; color: Black"><FONT STYLE="color: Black">The
undersigned acknowledges receipt of the Notice of Annual General Meeting of Shareholders and Proxy Statement of the Company relating
to the Meeting.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; color: Black"><FONT STYLE="color: Black"><B>Items
7 and 8 require an indication of &ldquo;Personal Interest&rdquo; (as defined under the Israeli Companies Law) in the resolution.
Please explicitly indicate whether you have a Personal Interest in items 7 and 8 by marking an X in one of the boxes shown, otherwise
your vote will not be counted.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left; color: Black"><FONT STYLE="color: Black"><B>For
information regarding the definition of &ldquo;Personal Interest&rdquo;, see the &ldquo;Votes Required&rdquo; section of the Proxy
Statement.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; color: Black"><FONT STYLE="color: Black"><B>(Continued
and to be signed on the reverse side.)</B></FONT></P>

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



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    <TD STYLE="width: 0.5in; text-align: left; vertical-align: bottom; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">1.1</FONT></TD>
    <TD STYLE="color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">14475</FONT></TD>
    <TD STYLE="width: 0.25in; color: Black"><FONT STYLE="color: Black; background-color: Black">&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0; color: Black"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">&nbsp;</FONT></P>

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

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