<SEC-DOCUMENT>0001144204-14-002094.txt : 20140228
<SEC-HEADER>0001144204-14-002094.hdr.sgml : 20140228

<ACCEPTANCE-DATETIME>20140114133656

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0001144204-14-002094

CONFORMED SUBMISSION TYPE:	F-3/A

PUBLIC DOCUMENT COUNT:		4

FILED AS OF DATE:		20140114

DATE AS OF CHANGE:		20140130


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			MAGIC SOFTWARE ENTERPRISES LTD

		CENTRAL INDEX KEY:			0000876779

		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]

		IRS NUMBER:				330477418

		STATE OF INCORPORATION:			L3

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		F-3/A

		SEC ACT:		1933 Act

		SEC FILE NUMBER:	333-192241

		FILM NUMBER:		14526727



	BUSINESS ADDRESS:	

		STREET 1:		5 HAPLADA STREET

		CITY:			OR YEHUDA ISRAEL

		STATE:			L3

		ZIP:			60218

		BUSINESS PHONE:		97235389322



	MAIL ADDRESS:	

		STREET 1:		5 HAPLADA STREET

		CITY:			OR YEHUDA ISRAEL

		STATE:			L3

		ZIP:			60218



</SEC-HEADER>

<DOCUMENT>
<TYPE>F-3/A
<SEQUENCE>1
<FILENAME>v365373_f3a.htm
<DESCRIPTION>FORM F-3/A
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Registration&nbsp;No.&nbsp;333-192241</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B> As filed with the Securities and
Exchange Commission on January 14, 2014 </B></P>

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

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P> <P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM F-3/A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B> Amendment No. 2 </B></P>

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

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

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P> <P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MAGIC SOFTWARE ENTERPRISES LTD.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">(Exact name of registrant
as specified in its charter)</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="width: 50%; text-align: center"><b>Israel</b></td>
    <td style="width: 50%; text-align: center"><b>Not Applicable</b></td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center"><font style="font-size: 10pt">(State or other jurisdiction of</font></td>
    <td style="text-align: center"><font style="font-size: 10pt">(I.R.S. Employer</font></td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center"><font style="font-size: 10pt">incorporation or organization)</font></td>
    <td style="text-align: center"><font style="font-size: 10pt">Identification No.)</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>5 Haplada Street,</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Or Yehuda 60218, Israel</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Tel: +972 (3) 538 9322</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address, including zip code, and telephone
number, including area code, of registrant's principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Magic Software Enterprises Inc. </B><BR>
<B>Attn: Regev Yativ, President </B><BR>
<B>24422 Avenida de la Carlota, Suite #365</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Laguna Hills, CA 92653</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name, address, including zip code, and
telephone number, including area code, of agent for service)</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>Copies of all communications, including
communications sent to agent for service, should be sent to:</I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD STYLE="width: 45%; padding-right: 4.5pt; padding-left: 4.5pt; text-align: center"><b>Amit Birk Adv.</b></td>
    <TD STYLE="width: 10%; padding-right: 4.5pt; padding-left: 4.5pt; text-align: center">&nbsp;</td>
    <TD STYLE="width: 45%; padding-right: 4.5pt; padding-left: 4.5pt; text-align: center"><b>Steven J. Glusband, Esq.</b></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center"><b>Magic Software Enterprises Ltd.</b></td>
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center">&nbsp;</td>
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center"><b>Carter Ledyard &amp; Milburn LLP</b></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center"><b>5 Haplada Street</b></td>
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center">&nbsp;</td>
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center"><b>2 Wall Street</b></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center"><b>Or-Yehuda, 60218, Israel</b></td>
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center">&nbsp;</td>
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center"><b>New York, NY 10005</b></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center"><b>972-3-538-9322</b></td>
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center">&nbsp;</td>
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center"><b>Tel: 212-238-8605</b></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center">&nbsp;</td>
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center">&nbsp;</td>
    <TD STYLE="padding-right: 4.5pt; padding-left: 4.5pt; text-align: center"><b>Fax: 212-732-3232</b></td></tr>
</table> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

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

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>If the
only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check
the following box.</B> </FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>If any
of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule&nbsp;415 under
the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check
the following box.</B> </FONT><FONT STYLE="font-family: Wingdings">x</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>If this
Form is filed to register additional securities for an offering pursuant to Rule&nbsp;462(b) under the Securities Act, please check
the following box and list the Securities Act registration statement number of the earlier effective registration statement for
the same offering.</B> </FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>If this
Form is a post-effective amendment filed pursuant to Rule&nbsp;462(c) under the Securities Act, check the following box and list
the Securities Act registration statement number of the earlier effective registration statement for the same offering.</B> </FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>If this
Form is a registration statement pursuant to General Instruction I.C. or a post-effective amendment thereto that shall become effective
upon filing with the Commission pursuant to Rule&nbsp;462(e) under the Securities Act, check the following box.</B> </FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><B>If this
Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register additional
securities or additional classes of securities pursuant to Rule&nbsp;413(b) under the Securities Act, check the following box.</B>
</FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>The registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment
which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of
the securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant
to said Section 8(a), may determine.</B></P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 24pt"><B>EXPLANATORY NOTE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 24pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt"> Magic Software Enterprises, Inc. is filing
this pre-effective Amendment No. 2 (this &ldquo;Amendment&rdquo;) to the Registration Statement on Form F-3 (Registration No.
333-192241) (the &ldquo;Registration Statement&rdquo;) as an exhibit-only filing, which amends the Exhibit Index to include reference
to Exhibit 4.7 (to be filed as an exhibit to a Form 6-K), and to file Exhibits 5.1 and 5.2. Accordingly, this Amendment consists
only of the facing page, this explanatory note, Part II of the Registration Statement, the signature pages to the Registration
Statement, the Exhibit Index and the filed Exhibits 5.1 and 5.2. The prospectus previously filed as part of the Registration Statement
is unchanged and has been omitted. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>


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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 15. Indemnification of Directors and Officers.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Israeli Companies Law and our Articles of Association authorize
us, subject to the receipt of requisite corporate approvals, to indemnify and exempt our directors and officers, subject to certain
conditions and limitations. &nbsp;In the past, our Audit Committee, board of directors and shareholders approved the issuance of
indemnification and exculpation letters to all our directors and officers (including directors and officers who could be deemed
to be controlling shareholders, within the meaning of the Israeli Companies Law). In light of the recent amendments to the Israeli
Securities Law, our shareholders approved at our 2011 annual general meeting an amendment to our form of indemnification and exculpation
letter to ensure that our directors and officers (including any director and officer who may be deemed to be a controlling shareholder,
within the meaning of the Israeli Companies Law) are afforded protection to the fullest extent permitted by law as currently in
effect. Under the approved form of indemnification and exculpation letter, the total amount of indemnification allowed may not
exceed an amount equal to 25% of our shareholders&rsquo; equity in the aggregate, calculated with respect to each of our directors
and officers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Israeli Companies Law provides that a company cannot exculpate
an office holder from liability with respect to a breach of his duty of loyalty, but may, if permitted by its articles of association,
exculpate or indemnify in advance an office holder from his liability to the company, in whole or in part, with respect to a breach
of his or her duty of care. However, a company may not exculpate in advance a director from his or her liability to the company
with respect to a breach of his duty of care in the event of distributions. The Israeli Companies Law provides that a company may,
if permitted by its articles of association, indemnify an office holder for acts or omissions performed by the office holder in
such capacity for:</P>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 48px">&nbsp;</td>
    <td style="width: 24px"><font style="font-family: Symbol">&middot;</font></td>
    <td>A financial liability imposed on the office holder in favor of another person by any judgment, including a settlement or an arbitrator&rsquo;s award approved by a court;</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 48px">&nbsp;</td>
    <td style="width: 24px"><font style="font-family: Symbol">&middot;</font></td>
    <td>Reasonable litigation expenses, including attorney&rsquo;s fees, actually incurred by the office holder as a result of an investigation or proceeding instituted against him or her by a competent authority, provided that such investigation or proceeding concluded without the filing of an indictment against the office holder or the imposition of any financial liability in lieu of criminal proceedings, or concluded without the filing of an indictment against the office holder and a financial liability was imposed on the officer holder in lieu of criminal proceedings with respect to a criminal offense that does not require proof of criminal intent; and</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 48px">&nbsp;</td>
    <td style="width: 24px"><font style="font-family: Symbol">&middot;</font></td>
    <td>Reasonable litigation expenses, including attorneys&rsquo; fees, incurred by such office holder or which were imposed on him by a court, in proceedings the company instituted against the office holder or that were instituted on the company&rsquo;s behalf or by another person, or in a criminal charge from which the office holder was acquitted, or in a criminal proceeding in which the office holder was convicted of a crime which does not require proof of criminal intent.</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In accordance with the Israeli Companies Law, a company&rsquo;s
articles of association may permit the company to:</P>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 48px">&nbsp;</td>
    <td style="width: 24px"><font style="font-family: Symbol">&middot;</font></td>
    <td>Undertake in advance to indemnify an office holder, except that with respect to a financial liability imposed on the office holder by any judgment, settlement or court-approved arbitration award, the undertaking must be limited to types of occurrences, which, in the opinion of the company&rsquo;s board of directors, are, at the time of the undertaking, foreseeable due to the company&rsquo;s activities and to an amount or standard that the board of directors has determined is reasonable under the circumstances; and</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 48px">&nbsp;</td>
    <td style="width: 24px"><font style="font-family: Symbol">&middot;</font></td>
    <td>Retroactively indemnify an office holder of the company.</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Insurance for Office Holders</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Israeli Companies Law provides that a company may, if permitted
by its articles of association, insure an office holder for acts or omissions performed by the office holder in such capacity for:</P>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 48px">&nbsp;</td>
    <td style="width: 24px"><font style="font-family: Symbol">&middot;</font></td>
    <td>A breach of his or her duty of care to the company or to another person;</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 48px">&nbsp;</td>
    <td style="width: 24px"><font style="font-family: Symbol">&middot;</font></td>
    <td>A breach of his or her duty of loyalty to the company, provided that the office holder acted in good faith and had reasonable cause to assume that his act would not prejudice the company&rsquo;s interests; and</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 48px">&nbsp;</td>
    <td style="width: 24px"><font style="font-family: Symbol">&middot;</font></td>
    <td>A financial liability imposed upon the office holder in favor of another person as a result of an action which was performed by that office holder.</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our articles of association allow us to insure our office holders
to the fullest extent permitted by law.&nbsp;&nbsp;Until its expiration in December 2011, we maintained a directors&rsquo; and
officers&rsquo; liability insurance policy with liability coverage of up to $20 million per claim and in the aggregate (including
legal costs incurred world-wide) of an annual premium of $39,000.&nbsp;&nbsp;At our 2011 annual general meeting, our shareholders
approved a framework agreement of terms and conditions for the renewal, extension or replacement, from time to time, for a period
of up to three years from December 14, 2011, of our directors&rsquo; and officers&rsquo; liability insurance policy for all directors
and officers of the company and its subsidiaries, who may serve from time to time (including a director who may be deemed a controlling
shareholder, within the meaning of the Israeli Companies Law), according to which (i) the annual aggregate premium of the New Policy
may not exceed 25% of the previous year&rsquo;s aggregate premium; (ii) the coverage limit per claim and in the aggregate under
the New Policy may not exceed an amount representing an increase of 25% in any year, as compared to the previous year&rsquo;s aggregate
coverage limit; and (iii) the terms of any new policy must be identical with respect to all of our officers and directors (including
officers and directors who may be deemed controlling shareholders, within the meaning of the Israeli Companies Law).&nbsp;&nbsp;No
further approval by our shareholders will be required in connection with any renewal, extension or purchase of any new policy entered
into in compliance with the foregoing terms and conditions of the framework agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Limitations on Exculpation, Insurance and Indemnification</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Israeli Companies Law provides that neither a provision
of the articles of association permitting the company to enter into a contract to insure the liability of an office holder, nor
a provision in the articles of association or a resolution of the board of directors permitting the indemnification of an office
holder, nor a provision in the articles of association exempting an office holder from duty to the company shall be valid, where
such insurance, indemnification or exemption relates to any of the following:</P>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 48px">&nbsp;</td>
    <td style="width: 24px"><font style="font-family: Symbol">&middot;</font></td>
    <td>a breach by the office holder of his duty of loyalty, except with respect to insurance coverage or indemnification if the office holder acted in good faith and had reasonable grounds to assume that the act would not prejudice the company;</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 48px">&nbsp;</td>
    <td style="width: 24px"><font style="font-family: Symbol">&middot;</font></td>
    <td>a breach by the office holder of his duty of care if such breach was committed intentionally or recklessly, unless the breach was committed only negligently;</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 48px">&nbsp;</td>
    <td style="width: 24px"><font style="font-family: Symbol">&middot;</font></td>
    <td>any act or omission committed with intent to derive an unlawful personal gain; and</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 48px">&nbsp;</td>
    <td style="width: 24px"><font style="font-family: Symbol">&middot;</font></td>
    <td>any fine or forfeiture imposed on the office holder.</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, pursuant to the Israeli Companies Law, exemption
of, procurement of insurance coverage for, an undertaking to indemnify or indemnification of an office holder must be approved
by the audit committee and the board of directors and, if such office holder is a director or a controlling shareholder or a relative
of the controlling shareholder, also by the shareholders general meeting. A special majority at the general meeting is required
if a controlling shareholder is interested in such transaction as an office holder or as a relative of an office holder, as described
above.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our articles of association allow us to insure, indemnify and
exempt our office holders to the fullest extent permitted by law, subject to the provisions of the Israeli Companies Law. We currently
maintain a directors&rsquo; and officers&rsquo; liability insurance policy with a per-claim and aggregate coverage limit of $20
million, including legal costs incurred world-wide.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt"><B>Item 16. Exhibits.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The index to exhibits appears below on the page immediately
following the signature pages of this Registration Statement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 17. Undertakings.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned registrant hereby undertakes:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
include any prospectus required by Section&nbsp;10(a)(3) of the Securities Act of 1933 (the &quot;Securities Act&quot;);</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
reflect in the prospectus any facts or events arising after the effective date of this Registration Statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in this Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high
end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the &lsquo;&lsquo;Calculation of Registration Fee&rsquo;&rsquo; table in the effective registration
statement; and</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to include
any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or any
material change to such information in this Registration Statement;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>provided, however,</I> that paragraphs (i),&nbsp;(ii) and
(iii)&nbsp;above do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained
in periodic reports filed with or furnished to the Commission by the registrant pursuant to Section&nbsp;13 or Section&nbsp;15(d)
of the Securities Exchange Act of 1934 (the &quot;Exchange Act&quot;) that are incorporated by reference in this Registration Statement
or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the Registration Statement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;that,
for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;that,
for the purpose of determining any liability under the Securities Act to any purchaser:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;each
prospectus filed by the registrant pursuant to Rule&nbsp;424(b)(3) shall be deemed to be a part of the registration statement as
of the date the filed prospectus was deemed part of and included in the registration statement; and</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;each
prospectus required to be filed pursuant to Rule&nbsp;424(b)(2), (b)(5) or (b)(7) as part of a registration statement in reliance
on Rule&nbsp;430B relating to an offering made pursuant to Rule&nbsp;415(a)(1)(i), (vii)&nbsp;or (x)&nbsp;for the purpose of providing
the information required by Section&nbsp;10(a) of the Securities Act shall be deemed to be part of and included in the registration
statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract
of sale of securities in the offering described in the prospectus. As provided in Rule&nbsp;430B, for liability purposes of the
issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration
statement relating to the securities in the registration statement to which the prospectus relates, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof; <I>provided, however, </I>that no statement made in
a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed
incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to
a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the
registration statement or prospectus that was part of the registration statement or made in any such document immediately prior
to such effective date.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;that,
for the purpose of determining liability of a registrant under the Securities Act to any purchaser in the initial distribution
of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant
pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if
the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant
will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
preliminary prospectus or prospectus of the undersigned registrant to the offering required to be filed pursuant to Rule&nbsp;424;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to
by an undersigned registrant;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the portion
of any other free writing prospectus relating to the offering containing material information about the undersigned registrant
or its securities provided by or on behalf of the undersigned registrant; and</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any other
communication that is an offer in the offering made by the undersigned registrant to the purchaser.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing
of the registrant's annual report pursuant to Section&nbsp;13(a) or Section&nbsp;15(d) of the Exchange Act (and, where applicable,
each filing of an employee benefit plan&rsquo;s annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated
by reference in this Registration Statement shall be deemed to be a new registration statement relating to the securities offered
herein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
of the registrant pursuant to the provisions referred to in Item 15, or otherwise, the registrant has been advised that in the
opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed
in the Securities Act and will be governed by the final adjudication of such issue.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, the information
omitted from the form of prospectus filed as part of this Registration Statement in reliance upon Rule&nbsp;430A and contained
in a form of prospectus filed by the registrant pursuant to Rule&nbsp;424(b)(1) or (4)&nbsp;or 497(h) under the Securities Act
shall be deemed to be part of this Registration Statement as of the time it was declared effective.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned registrant hereby undertakes that, for the purpose of determining any liability under the Securities Act, each post-effective
amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned registrant hereby undertakes to file an application for the purpose of determining the eligibility of the trustee to
act under subsection (a) of section 310 of the Trust Indenture Act (&quot;Act&quot;) in accordance with the rules and regulations
prescribed by the Commission under section 305(b)2 of the Act.</P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> Pursuant to the requirements of the Securities Act, the
Registrant certifies that it has reasonable grounds to believe that it complies with all of the requirements for filing on Form
F-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized,
in Or Yehuda, Israel, on January 14, 2014. </P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</td>
    <TD STYLE="width: 4%">By:</td>
    <TD STYLE="width: 46%; border-bottom: Black 1pt solid">/s/Guy Bernstein</td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>Guy Bernstein</td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>Chief Executive Officer</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> Pursuant to the requirements of the Securities Act, this
registration statement has been signed below by the following persons in the capacities indicated on January 14, 2014. </P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD STYLE="width: 49%; border-bottom: Black 1pt solid"><B> Signature </B></td>
    <TD STYLE="width: 2%; padding-bottom: 1pt"> &nbsp; </td>
    <TD STYLE="width: 49%; border-bottom: Black 1pt solid"><B> Title </B></td></tr>
<tr style="vertical-align: top">
    <TD> &nbsp; </td>
    <TD> &nbsp; </td>
    <TD> &nbsp; </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"> /s/Guy Bernstein </td>
    <TD> &nbsp; </td>
    <TD> Chief Executive Officer (Principal Executive Officer) and </td></tr>
<tr style="vertical-align: top">
    <TD> Guy Bernstein </td>
    <TD> &nbsp; </td>
    <TD> Director </td></tr>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD></TR>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"> * </td>
    <TD> &nbsp; </td>
    <TD> Chief Financial Officer (Principal Accounting and Financial </td></tr>
<tr style="vertical-align: top">
    <TD> Asaf Berenstin </td>
    <TD> &nbsp; </td>
    <TD> Officer) </td></tr>
<tr style="vertical-align: top">
    <TD> &nbsp; </td>
    <TD> &nbsp; </td>
    <TD> &nbsp; </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"> * </td>
    <TD> &nbsp; </td>
    <TD> Director </td></tr>
<tr style="vertical-align: top">
    <TD> Naamit Salomon </td>
    <TD> &nbsp; </td>
    <TD> &nbsp; </td></tr>
<tr style="vertical-align: top">
    <TD> &nbsp; </td>
    <TD> &nbsp; </td>
    <TD> &nbsp; </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"> * </td>
    <TD> &nbsp; </td>
    <TD> Director </td></tr>
<tr style="vertical-align: top">
    <TD> Yehezkel Zeira </td>
    <TD> &nbsp; </td>
    <TD> &nbsp; </td></tr>
<tr style="vertical-align: top">
    <TD> &nbsp; </td>
    <TD> &nbsp; </td>
    <TD> &nbsp; </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"> * </td>
    <TD> &nbsp; </td>
    <TD> Director </td></tr>
<tr style="vertical-align: top">
    <TD> Itiel Efrat </td>
    <TD> &nbsp; </td>
    <TD> &nbsp; </td></tr>
<tr style="vertical-align: top">
    <TD> &nbsp; </td>
    <TD> &nbsp; </td>
    <TD> &nbsp; </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"> * </td>
    <TD> &nbsp; </td>
    <TD> Director </td></tr>
<tr style="vertical-align: top">
    <TD> Elan Penn </td>
    <TD> &nbsp; </td>
    <TD> &nbsp; </td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD COLSPAN="2">MAGIC SOFTWARE ENTERPRISES, <FONT STYLE="text-transform: uppercase">Inc.</FONT></td>
    <TD>&nbsp;</td>
    <TD>Authorized Representative in the United States </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="width: 5%">&nbsp;</td>
    <TD STYLE="width: 45%">&nbsp;</td>
    <TD STYLE="width: 5%">&nbsp;</td>
    <TD STYLE="width: 45%">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD>By:</td>
    <TD STYLE="border-bottom: Black 1pt solid">/s/Regev Yativ</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD>Name:&nbsp;&nbsp;</td>
    <TD><b>Regev Yativ</b></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD>Title:</td>
    <TD><b>President</b></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<tr style="vertical-align: top">
    <TD>By:</td>
    <TD STYLE="border-bottom: Black 1pt solid">/s/Amit Birk</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD>Name:</td>
    <TD><b>Amit Birk</b></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD><font style="text-transform: uppercase">a</font><font style="font-size: 10pt">ttorney-in-Fact*</font></td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: Black 1pt solid; text-align: center"><B>Exhibit No.</B></TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt"><B>&nbsp;</B></td>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid"><B>Description of Exhibit</B></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right; width: 5%">1.1</td>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="width: 88%">Form of Underwriting Agreement or Agency Agreement (1)</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right">4.1</td>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</td>
    <TD>Memorandum of Association of the Registrant, as amended (2)</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right">4.2</td>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</td>
    <TD>Specimen of Ordinary Share Certificate (3)</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right">4.3</td>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</td>
    <TD>Form of Subscription Rights Agreement (including form of Subscription Right Certificate) (4)</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right">4.4</td>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</td>
    <TD>Form of Warrant (5)</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right">4.5</td>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</td>
    <TD>Indenture relating to the issuances of debentures, notes, bonds or other evidences of indebtedness*</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right">4.6</td>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</td>
    <TD>Form of debt security (1)</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right"> 4.7 </td>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </td>
    <TD> Form of unit agreement (including form of unit certificate)(1)&nbsp;&nbsp; </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right">5.1</td>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</td>
    <TD>Opinion of Amit Birk, Advocate</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right">5.2</td>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</td>
    <TD>Opinion of Carter Ledyard &amp; Milburn LLP</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right"> 23.1 </td>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </td>
    <TD> Consent of Kost Forer Gabbay &amp; Kasierer, a member of Ernst &amp; Young Global* </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right"> 23.2 </td>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </td>
    <TD> Consent of Levy Cohen &amp; Co., Chartered Accountants (relating to Magic Software Enterprises (UK) Limited)* </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right"> 23.3 </td>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </td>
    <TD> Consent of Levy Cohen &amp; Co., Chartered Accountants (relating to Hermes Logistics Technologies Limited)* </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right"> 23.4 </td>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </td>
    <TD> Consent of KDA Audit Corporation (relating to Magic Software Japan K.K.)* </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right"> 23.5 </td>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </td>
    <TD> Consent of Verstegen accountants en adviseurs (relating to Magic Benelux B.V.)* </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right"> 23.6 </td>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </td>
    <TD> Consent of M&aacute;ria N&eacute;gyessy Registered Auditors (relating to Magic (Onyx) Magyarorsz&aacute;g Szoftverh&aacute;z
    Kft.)* </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right">23.7</td>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</td>
    <TD>Consent of Amit Birk, Advocate (contained in Exhibit 5.1)</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right"> 23.8 </td>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </td>
    <TD> Consent of Carter Ledyard &amp; Milburn LLP (contained in Exhibit 5.2) </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right"> 24.1 </td>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </td>
    <TD> Power of Attorney (included in the signature page to the Registration Statement)* </td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: right">25.1</td>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</td>
    <TD>Statement of Eligibility of Trustee under Indenture (6)</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incorporated
by reference, if necessary, to a corresponding exhibit to a Current Report on Form 6-K in connection with an offering of securities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Previously
filed as an Item to the registrant&rsquo;s Form 6-K for the month of December 2011, filed on December 7, 2011, and incorporated
herein by reference.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Previously
filed as Exhibit 4.1 to the registrant&rsquo;s registration statement on Form F-1, registration number 33-41486, and incorporated
herein by reference.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
applicable, to be filed by amendment or incorporated by reference pursuant to a report on Form 6-K.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Previously
filed as an Item to the registrant&rsquo;s Form 6-K for the month of December 2010, filed on December 23, 2010, and incorporated
herein by reference.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where applicable, to be incorporated by reference to
a subsequent filing in accordance with Section&nbsp;305(b)(2) of the Trust Indenture Act of 1939, as amended.</P>

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

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

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


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<TYPE>EX-5.1
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<FILENAME>v365373_ex5-1.htm
<DESCRIPTION>EXHIBIT 5.1
<TEXT>
<HTML>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><B>[LETTER
HEAD OF AMIT BIRK-LAW OFFICE]</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">January 13, 2014</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">Or Yehuda 60218,</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">Re: Registration Statement on
Form F-3 of Magic Software Enterprises Ltd.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">I have acted as counsel to Magic Software
Enterprises Ltd., a company organized under the laws of the State of Israel, (the &ldquo;Registrant&rdquo;) in connection with
the Registration Statement on Form F-3 (the &ldquo;Registration Statement&rdquo;) to be filed by the Registrant with the Securities
and Exchange Commission under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;). The Registration Statement
relates to the registration of up to $60,000,000 aggregate amount of any or all of the following securities (the &ldquo;Securities&rdquo;):
(i) ordinary shares, par value NIS&nbsp;.1 per share, of the Registrant (Ordinary Shares&rdquo;); (ii) debt securities (&ldquo;Debt
Securities&rdquo;); (iii) warrants to purchase debt or equity securities (&ldquo;Warrants&rdquo;); (iv) subscription rights to
purchase Ordinary Shares (&ldquo;Subscription Rights&rdquo;); and (v) units comprised of one or more of the Ordinary Shares, Debt
Securities Warrants and&nbsp;&nbsp;Subscription Rights in any combination ( &ldquo;Units&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As counsel to the Registrant in connection with the registering
of the Securities pursuant to the Registration Statement, I have examined such corporate records, certificates and other documents,
and such questions of law, as I have considered necessary or appropriate for the purpose of my opinion.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Upon the basis of such examination, I am of the opinion that:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When the issuance of the Ordinary Shares has been duly authorized
by appropriate corporate action, and the Ordinary Shares have been duly issued, sold and delivered in accordance with the applicable
definitive purchase agreement or other similar agreement approved by, or on behalf of, the Registrant &rsquo;s Board of Directors,
the Ordinary Shares will be legally issued, fully paid and nonassessable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When the issuance of the Warrants has been duly authorized
by appropriate corporate action, and the Warrants have been duly executed and delivered against payment therefore, pursuant to
a warrant agreement or agreements duly authorized, executed and delivered by the Registrant and a warrant agent, the Warrants will
be valid and binding obligations of the Registrant, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability relating to or affecting creditors&rsquo; rights and to general equity principles.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.2in">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When the issuance of the Ordinary Shares
issuable upon the exercise of any Warrants has been duly authorized by appropriate corporate action, and the Ordinary Shares have
been duly issued, and the Registrant has received any additional consideration which is payable upon the exercise of the Warrants,
the Ordinary Shares will be legally issued, fully paid and nonassessable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.2in">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When the issuance of the Debt Securities
issuable upon the exercise of any Warrants has been duly authorized by appropriate corporate action, and the Debt Securities, have
been duly completed, executed, authenticated and delivered in accordance with the indenture to be filed as an exhibit to the Registration
Statement (the &ldquo;Indenture&rdquo;), and the Registrant has received any additional consideration which is payable upon the
exercise of the Warrants, the Debt Securities will be valid and binding obligations of the Registrant, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors&rsquo;
rights and to general equity principles.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When the issuance of the Debt Securities has been duly authorized
by appropriate corporate action and the Debt Securities have been duly completed, executed, authenticated and delivered in accordance
with the Indenture and sold pursuant to the applicable definitive purchase agreement or similar agreement approved by, or on behalf
of, the Board of Directors of the Registrant, the Debt Securities will be valid and binding obligations of the Registrant, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to
or affecting creditors&rsquo; rights and to general equity principles.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
respect to the Subscription Rights, assuming the (a) taking of all necessary corporate action to authorize and approve the issuance
and terms of any Subscription Rights, the terms of the offering thereof and related matters and (b) due execution, authentication,
issuance and delivery of such Subscription Rights upon payment of the consideration therefor provided for in the applicable definitive
purchase, underwriting or similar agreement approved by the board of directors and otherwise in accordance with the provisions
of the applicable Subscription Rights Agreement, such Subscription Rights will constitute valid and legally binding obligations
of the Registrant, enforceable against the Registrant in accordance with their terms.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
respect to the Units, assuming the (a) taking of all necessary corporate action to authorize and approve the issuance and the terms
of the Units, the related Unit Agreement and any Securities which are components of the Units, the terms of the offering thereof
and related matters and (b) due execution, countersignature (where applicable), authentication, issuance and delivery of the Units
and the Securities that are components of such Units in each case upon the payment of the consideration therefor provided for in
the applicable definitive purchase, underwriting or similar agreement approved by the board of directors, and otherwise in accordance
with the provisions of the applicable (i) Indenture, in the case of Debt Securities, (ii) Subscription Rights Agreement, in the
case Subscription Rights and (iii) Warrant Agreement, in the case of Warrants, such Units will be validly issued and legally binding
obligations of the Registrant, enforceable against the Registrant in accordance with the Unit Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the laws of Israel, the designation of the law
of the State of&nbsp;&nbsp;New York to apply to the Indentures, the Warrant Agreement and the Subscription Rights Agreement will
be binding upon the Registrant, and, if properly brought to the attention of the court or administrative body in accordance with
the laws of Israel, would be enforceable in any judicial or administrative proceeding in Israel subject to the existence of special
circumstances or considerations, and subject generally to the discretion of the Israeli court ruling on the matter.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Carter Ledyard &amp; Milburn LLP may rely upon this opinion
for the purpose of rendering their opinion dated January 13, 2014 with respect to certain matters concerning the Securities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The opinion expressed herein is limited to Israeli law, and
I do not express any opinion as to the laws of any other jurisdiction.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">I consent to the filing of this opinion as an exhibit to the
Registration Statement and to the references to my name under the headings &ldquo;Legal Matters&rdquo; and &ldquo;Enforceability
of Civil Liabilities&rdquo; in the Prospectus which is a part of the Registration Statement.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%">Very truly yours,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>/s/Amit Birk</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Amit Birk</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4in; text-indent: -0.5in">&nbsp;</P>


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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">January 13, 2014</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="text-transform: uppercase"><B><U>VIA e-mail</U></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Magic Software Enterprises Ltd.<BR>
Or Yehuda 60218<BR>
Israel</P>

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

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<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.5in">Re:</TD><TD>Registration Statement on Form F-3<BR>
<U>of Magic Software Enterprises Ltd.</U></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.75in; text-indent: -0.5in">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have acted as United States counsel to
Magic Software Enterprises Ltd., a company organized under the laws of the State of Israel, (the &ldquo;Company&rdquo;) in connection
with the Registration Statement on Form F-3 (the &ldquo;Registration Statement&rdquo;) filed by the Company with the Securities
and Exchange Commission under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;). The Registration Statement
relates to the registration of up to $60,000,000 aggregate amount of the following securities of the Company: (i) ordinary shares,
nominal value NIS 0.1 per share (the &ldquo;Ordinary Shares&rdquo;); (ii) debt securities (the &ldquo;Debt Securities&rdquo;);
(iii) warrants to purchase Ordinary Shares and/or Debt Securities (the &ldquo;Warrants&rdquo;); (iv) subscription rights distributed
to holders of the Company's securities to acquire Ordinary Shares ( the &ldquo; Subscription Rights&rdquo;); and (v) units comprised
of one or more of the Ordinary Shares, Debt Securities, Warrants and Subscription Rights in any combination (the &ldquo;Units,&rdquo;
and together with the Ordinary Shares, Debt Securities, Subscription Rights and Warrants, the &ldquo;Securities&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Debt Securities will be issued under
an indenture, substantially in the form of the exhibit to the Registration Statement (the &ldquo;Indenture&rdquo;) between the
Company and a trustee to be named in the applicable Prospectus Supplement (each, a &ldquo;Trustee&rdquo;). The Subscription Rights
will be issued pursuant to a subscription rights agreement (the &ldquo;Subscription Rights Agreement&rdquo;) between the Company
and a subscription agent (the &ldquo;Subscription Agent&rdquo;). The Warrants will be issued under a warrant agreement (the &ldquo;Warrant
Agreement&rdquo;) between the Company and a warrant agent (the &ldquo;Warrant Agent&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection herewith, we have examined
and relied without investigation as to matters of fact upon the Registration Statement and the exhibits thereto, including the
form of Indenture, and such certificates, statements and results of inquiries of public officials and officers and representatives
of the Company and originals or copies, certified or otherwise identified to our satisfaction, of such other documents, corporate
records, certificates and instruments as we have deemed necessary or appropriate to enable us to render the opinions expressed
herein. We have also relied, with the permission of Amit Birk Adv., upon his legal opinion letter to the Company dated January
13, 2014 with respect to certain matters concerning the Company and the Securities. We have assumed the genuineness of all signatures
on all documents examined by us, the legal competence and capacity of natural persons, the authenticity of documents submitted
to us as originals, and the conformity with authentic original documents of all documents submitted to us as copies.</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We also have assumed that: (1) at the time
of execution, authentication, issuance and delivery of the Debt Securities, the related Indenture will be the valid and legally
binding obligation of the applicable Trustee, enforceable against such party in accordance with its terms; (2) at the time of execution,
issuance and delivery of the Subscription Rights, the Subscription Rights Agreement will be the valid and legally binding obligation
of the Subscription Rights Agent, enforceable against such party in accordance with its terms; and (3) at the time of execution,
issuance and delivery of any Warrants, the related Warrant Agreement will be the valid and legally binding obligation of the Warrant
Agent, enforceable against such party in accordance with its terms.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have assumed further that: (1) at the
time of execution, issuance and delivery of the Debt Securities, the related Indenture will have been duly authorized, executed
and delivered by the Company and the applicable Trustee; (2) at the time of execution, issuance and delivery of the Subscription
Rights, the Subscription Rights Agreement will have been duly authorized, executed and delivered by the Company and the Subscription
Agent; (3) at the time of execution, issuance and delivery of any Warrants, the related Warrant Agreement will have been duly authorized,
executed and delivered by the Company and the Warrant Agent; and (4) at the time of the issuance and sale of any of the Securities,
the terms of the Securities, and their issuance and sale, will have been established so as not to violate any applicable law or
result in a default under or breach of any agreement or instrument binding upon the Company and so as to comply with any requirement
or restriction imposed by any court or governmental body having jurisdiction over the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Based upon the foregoing, in reliance thereon
and subject to the assumptions, comments, qualifications, limitations and exceptions stated herein and the effectiveness of the
Registration Statement under the Securities Act, we are of the opinion that:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">1. With respect to the Debt Securities,
assuming the (a) taking of all necessary corporate action to authorize and approve the issuance and terms of any Debt Securities,
the terms of the offering thereof and related matters and (b) due execution, authentication, issuance and delivery of such Debt
Securities upon payment of the consideration therefor provided for in the applicable definitive purchase, underwriting or similar
agreement approved by the board of directors and otherwise in accordance with the provisions of the applicable Indenture, such
Debt Securities will constitute valid and legally binding obligations of the Company, enforceable against the Company in accordance
with their terms.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">2. With respect to the Subscription Rights,
assuming the (a) taking of all necessary corporate action to authorize and approve the issuance and terms of any Subscription Rights,
the terms of the offering thereof and related matters and (b) due execution, authentication, issuance and delivery of such Subscription
Rights upon payment of the consideration therefor provided for in the applicable definitive purchase, underwriting or similar agreement
approved by the board of directors and otherwise in accordance with the provisions of the applicable Subscription Rights Agreement,
such Subscription Rights will constitute valid and legally binding obligations of the Company, enforceable against the Company
in accordance with their terms.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">3. With respect to the Warrants, assuming
the (a) taking of all necessary corporate action to authorize and approve the issuance and terms of any Warrants, the terms of
the offering thereof and related matters and (b) due execution, authentication, issuance and delivery of such Warrants upon payment
of the consideration therefor provided for in the applicable definitive purchase, underwriting or similar agreement approved by
the board of directors and otherwise in accordance with the provisions of the applicable Warrant Agreement, such Warrants will
constitute valid and legally binding obligations of the Company, enforceable against the Company in accordance with their terms.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our opinions herein reflect only the application
of applicable laws of the State of New York and the federal laws of the United States of America and no opinion is expressed with
respect to the laws of any other jurisdiction or any effect which such laws may have on the opinions expressed herein. This opinion
is limited to the matters stated herein, and no opinion is implied or may be inferred beyond the matters expressly stated herein.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The opinions set forth above are subject,
as to the enforcement of remedies, to bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the rights
and remedies of creditors generally and to the effect of general principles of equity.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This opinion is given as of the date hereof,
and we assume no obligation to advise you after the date hereof of facts or circumstances that come to our attention or changes
in law that occur which could affect the opinions contained herein. This letter is being rendered solely for the benefit of the
Company in connection with the matters addressed herein. This opinion may not be furnished to or relied upon by any person or entity
for any purpose without our prior written consent.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We consent to the filing of this opinion
as an exhibit to the Registration Statement and to the reference to us under the caption &ldquo;Legal Matters&rdquo; in the Prospectus.
In giving such consent, we do not thereby concede that we are within the category of persons whose consent is required under Section
7 of the Act or the Rules and Regulations of the Commission thereunder.</P>

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

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    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%"><FONT STYLE="font-size: 10pt">Very truly yours,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">/s/Carter Ledyard &amp; Milburn LLP</FONT></TD></TR>
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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Magic Software Enterprises Ltd.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>5 Haplada Street,</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Or Yehuda 60218, Israel</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">January 14, 2014</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">U.S. Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Washington, D.C. 20549</P>

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

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<TD STYLE="width: 144pt"></TD><TD STYLE="width: 27pt">Re:</TD><TD>Magic Software Enterprises Ltd.<BR>
Registration Statement on Form F-3,<BR>
Filed December 19, 2013<U><BR>
File No. 333-192241&nbsp;&nbsp;&nbsp;&nbsp;</U></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 171pt; text-indent: -27pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Set forth below is the response of Magic
Software Enterprises Ltd. (the &ldquo;Company&rdquo;) to the comment of the staff of the Securities and Exchange Commission (the
&ldquo;Staff&rdquo;) regarding the Registration Statement on Form F-3 that was filed on December 19, 2013.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have repeated the Staff&rsquo;s comment
in italics and set forth our response in plain type below the comment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><U>Exhibit 5.1</U></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>1. <FONT STYLE="font-family: Times New Roman, Times, Serif">With
respect to the paragraph number 5, please obtain and file a revised opinion, which </FONT>opines that the units will constitute
valid and binding obligations of the company, or obtain an opinion that otherwise conforms with the requirements of paragraph (b)(5)
of Item 601 of Regulation S-K. For guidance, see Section I I B(1) (h) of Staff Legal Bulletin No. 19.</I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The legal opinion has been revised to opine
that the units will constitute valid and binding obligations of the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If you have any questions as to the contents
of this letter, please contact our counsel, Steven J. Glusband at (212) 238-8605.</P>

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

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

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

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%"><FONT STYLE="font-size: 10pt">Very truly yours,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">/s/Guy Bernstein</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Guy Bernstein</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

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

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

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