|       Robert      S. EhrlichChairman      and Chief Executive Officer |   Arotech      Corporation  1229      Oak Valley DriveAnn      Arbor, Michigan 48108Tel:  (800)      281-0356   Fax:  (734) 761-5368http://www.arotech.comNasdaq      Global Market: ARTXWriter’s direct dial:      +972-2-990-6612Writer’s direct fax:      +972-2-990-6688Writer’s e-mail: ehrlich@arotech.com |
|-----------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Section      1 of the Agreement is hereby deleted in its entirety, and in place and      stead thereof a new Section 1 is hereby inserted, reading as      follows: |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Throughout      the Agreement. any and all references to the “Initial Term” or to an      “Additional Term” shall be deemed to be references to the      “Term.” |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The      following language shall be added at the end of the penultimate sentence      of Section 7(b)(ii): “; provided, however, that in the      event of Termination due to Change in Control, all of the foregoing      multiples of monthly Base Salary shall be increased by an additional six      (6) times, such that, for purposes of example, a Termination due to a      Change of Control at or after the end of the third year of this Agreement      shall result in termination pay equal to a total of (i) $107,200 plus (ii)      thirty (30) times the monthly Base Salary at the highest rate in effect at      any time within the ninety (90) day period ending on the Termination      Date.” |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | For      the avoidance of doubt, we hereby clarify that if your employment is      Terminated by you for Good Reason or because there has been a Change in      Control or a Change of Location, or by us without Cause, or due to      Non-Renewal, you will be entitled to be paid upon Termination, in addition      to and not instead of all Accrued Compensation and all other compensation      due to you pursuant to the provisions of Section 7 of the Agreement, all      Base Salary that you would have been paid through the end of the Term but      for the Termination. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Pursuant      to the terms of the Agreement, your Base Salary is supposed to be      increased by 6% each year to take account of inflation (irrespective of      the actual inflation rate). You hereby agree to waive this increase in      respect of 2009. Notwithstanding this waiver and any future waiver of this      6% increase, your “Base Salary” for purposes of determining compensation      upon Termination shall refer to the higher of (i) your actual monthly Base      Salary at the highest rate in effect at any time within the ninety (90)      day period ending on the Termination Date, and (ii) what your Base Salary      at the Termination Date would have been had you not waived the 6%      increase(s) referred to above. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | Arotech      Corporation, the parent corporation of the Company, hereby unconditionally      guarantees to you the full and prompt payment and performance of all      obligations, accrued and executory, which the Company presently has or      hereafter may have to you under theAgreement. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | In      all other respects, the terms of the Agreement will govern the      relationship between us. |
|--------|----|------------------------------------------------------------------------------------------------------|