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# Exhibit 4.12

# ENGLISH SUMMARY OF THE
CONVERTIBLE LOAN AGREEMENT (ORIGINAL LANGUAGE  HEBREW)

BY AND AMONG

# NEXUS TELOCATION
SYSTEMS LTD.

# POINTER (EDEN TELECOM
GROUP) LTD.

AND

# EGGED HOLDINGS LTD.

Dated November 16,
2004(the
Agreement)

|Description: 
                      
                      
                      
                      
                      
                      
Availability: 
                      
                      
                      
                      
                      
                      
                      
                      
Term and Interest: 
                      
                      
                      
                      
                      
                      
                      
Conversion: | Convertible  Loan  Agreement   pursuant  to  which
Egged Holdings Ltd.  ("Egged")  shall loan Pointer
(Eden Telecom  Group) Ltd.  ("Pointer") $2 million
("First   Loan"),   convertible   into  shares  of
Pointer  and/or  Nexus  Telocation   Systems  Ltd.
("Nexus")  and  NIS  7,275,000   ("Second   Loan")
convertible into shares of Pointer and/or Nexus.
The First Loan shall be made  available to Pointer
at the consummation of the Agreement.
The  Second  Loan  shall  be  made   available  to
Pointer on  February  28,  2005 (that is, upon the
consummation of the transaction  pursuant to which
Pointer  shall  purchase  certain  activities  and
assets of Shagrir  Towing  Services  Ltd.  and its
subsidiary,    Shagrir   (1985)   Ltd.   ("Shagrir
Deal")).
Interest  on the First  Loan  shall be at the rate
of LIBOR (3-month) plus 3.5%  compounded  annually
and   accrued   daily.   Interest   payments   and
principal  payments on the First Loan shall become
payable from February 28, 2008.
The  Second  Loan  shall be  repaid  over 10 years
with 4% interest  payable during first 2 years and
7.5% interest payable thereafter.
Egged  shall have an option to  convert  the First
Loan into up to 9,433  ordinary  shares of Pointer
(calculated  at a price per share of $212)  and/or
up  to   15,503,875   ordinary   shares  of  Nexus
(calculated  at a  price  per  share  of  $0.129),
subject to certain conditions.
Egged shall have a 24-month  option to convert the
Second  Loan  into the  ordinary  shares  of Nexus
and/or Pointer,  at its  discretion.  Should Egged
wish to  convert  the Second  Loan into  shares of
Pointer,   60%  of  the   Second   Loan  shall  be
converted  at price per share of NIS 729,  and the
remaining  40% will be  converted  at a price  per
share  ranging from NIS 729 to NIS 937  (according
to  a   sliding   scale,   where   the  later  the
conversion,  the  higher  the  share  price).  The
Second  Loan may also be  converted  by Egged into
up  to   8,888,889   ordinary   shares   of  Nexus
(calculated at a price per our ordinary  shares of
$0.18).  Should  Egged fail to  exercise  at least
60%  of the  option  by  the  end of the  24-month
option  period,  Pointer shall have a "Put" option
to force Egged to  purchase  such number of shares
in Pointer that  represents 60% of the Second Loan
amount.
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|Security: 
                    
                    
                    
                    
                    
                    
Investment by Nexus: | As  security  on the loans,  Pointer  shall  grant
Egged a third  ranking  floating  charge  over the
assets  of  Pointer  and  a  third  ranking  fixed
charge  over  Pointer's  rights to  proceeds  from
transactions  with Clal Insurance Company Ltd. and
The  Israel   Phoenix   Insurance   Company  Ltd.,
subject to certain conditions.
At the  consummation of the Shagrir Deal (February
28,  2005),  Nexus shall  invest NIS  4,550,000 in
Pointer.
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