On October 9, 2013, Hotel Outsource Management International Inc. (HOMI") entered into a new loan agreement with Tomwood Limited. Pursuant to this loan agreement, Tomwood agreed to loan to HOMI the sum of $50,000, bearing 8% annual interest. The funds were wired to HOMI in September 2013, and the date of the loan shall be deemed to be October 1, 2013.

The principal and all accrued interest shall be repaid in sixteen (16) consecutive quarterly payments commencing January 1, 2014 and thereafter on the first day of each calendar quarter, ending with the final payment on October 1, 2017. However, there will be a two (2) year grace period for the principal of the loan, with the result that the first eight (8) quarterly repayments shall consist solely of accrued interest, while the final eight (8) quarterly payments will consist of principal plus accrued interest. Pursuant to this loan agreement, within thirty (30) days of closing an equity investment of $600,000 or more, HOMI may elect to repay all or any portion of the outstanding loan and/or accrued interest in shares of HOMI common stock which shares shall be value at the same price per share as in the corresponding equity investment.