{"url_path":"/sec/bosc/10-k/2026/item-7","section_key":"item-7","section_title":"Item 7 Major Shareholders and Related Party Transactions**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-03-31","source_url":"https://www.sec.gov/Archives/edgar/data/1005516/0001213900-26-037333-index.html","accession_number":"0001213900-26-037333","cik":"0001005516","ticker":"BOSC","issuer_name":"BOS BETTER ONLINE SOLUTIONS LTD","edgar_url":"https://www.sec.gov/Archives/edgar/data/1005516/0001213900-26-037333-index.html","primary_entity_key":"0001005516","primary_entity_name":"BOS BETTER ONLINE SOLUTIONS LTD"},"word_count":621,"has_tables":true,"body_markdown":"**Item 7: Major Shareholders and Related Party Transactions**\n\n \n\n**7A.\nMajor Shareholders**\n\n \n\nWe are not directly or indirectly\nowned or controlled by another corporation or by any foreign government. To the Company’s knowledge, based on a Schedule 13G/A filed\non January 21, 2025, on December 31, 2025, Todd M. Felte beneficially owned 458,118 Ordinary Shares, representing as of March 15, 2026,\n6.5% of the issued and outstanding Ordinary Shares. To the Company’s knowledge, as of March 15, 2026, no other shareholder beneficially\nowned more than 5% of the Company’s Ordinary Shares.\n\n \n\nThe changes in holdings (excluding\nwarrants) of the major shareholders over the last three years are detailed, to the best of our knowledge or based on the respective shareholder’s\npublic filings, in the table below:\n\n \n\nHoldings as of: \nDecember 31,\n2023  \nDecember 31,\n2024  \nDecember 31,\n2025 \n\nTodd M. Felte(1) \n 556,390  \n 458,118  \n 458,118 \n\n \n\n(1)\nThe Company has no current information confirming Mr. Felte’s continued ownership above 5%.\n\n \n\nAs of March 15, 2026, there\nwere 34 record holders of Ordinary Shares, of which 6 were registered with addresses in the United States, representing approximately\n99% of the outstanding Ordinary Shares held by our record shareholders. However, the number of record holders in the United States is\nnot representative of the number of beneficial holders, nor is it representative of where such beneficial holders are resident since many\nof the Ordinary Shares are held of record by brokers and other nominees.\n\n \n\n**7B.\nRelated Party Transactions**\n\n \n\n**Intercompany Payments**\n\n \n\nDuring the years 2024 and\n2025 the Company charged its subsidiaries, Odem and Dimex, management fees in the total amounts of $2,287,000 and $2,775,000, respectively.\n\n \n\nSince January 2021 until March\n15, 2026, the Company has raised $6.8 million, most of which were contributed to its subsidiaries and used for working capital, bank loans\nrepayments and for acquisitions. In certain cases, the Company pays by shares for acquisitions made by a subsidiary (for example, the\niDnext acquisition).\n\n** **\n\n**Indemnity Undertakings by the Company to its\nDirectors and Officers**\n\n \n\nOn February 18, 2003, the\nCompany’s shareholders approved indemnity undertakings to its directors and officers (including future directors and officers as\nmay be appointed from time to time), in excess of any insurance proceeds, not to exceed, in the aggregate over the years, a total amount\nof $2,500,000. On May 18, 2006, at the recommendation of the audit committee and the Board of Directors, the shareholders approved amendments\nto the indemnity undertakings, in light of changes to the Israeli Companies Law.\n\n \n\nOn December 20, 2011, following\nan amendment to the Israeli Securities Law and a corresponding amendment to the Israeli Companies Law, which had authorized the Israeli\nSecurities Authority to impose administrative sanctions against companies and their office holders for certain violations of the Israeli\nSecurities Law or the Israeli Companies Law, the Company’s shareholders approved a modified form of such indemnification agreement\nto ensure that the Company’s directors were afforded protection to the fullest extent permitted by law, which form was approved\nand ratified by the Company’s shareholders most recently on October 30, 2025. In addition, under the indemnification agreements,\nthe Company exempts and releases each director from any and all liability to the Company related to any breach by each director of his\nduty of care to the Company, to the maximum extent permitted by law. \n\n \n\n38\n\n \n\n \n\nOn December 14, 2023, the\nCompany’s shareholders approved the Company’s Compensation Policy which stipulates that the Company may purchase directors’\nand officers’ liability insurance at a coverage of up to $5 million per event and per period, irrespective of the cost of the\nannual premium. In addition, the Compensation Policy was amended to include a clawback provision, in compliance with Nasdaq listing rules.\n\n \n\n**7C.\nInterests of Experts and Counsel**\n\n \n\nNot applicable."}