diff --git a/.gitignore b/.gitignore
index b81882e..afbc009 100644
--- a/.gitignore
+++ b/.gitignore
@@ -3,3 +3,4 @@
 /bundler-1.0.15.gem
 /bundler-1.0.21.gem
 /bundler-1.1.4.gem
+/bundler-1.2.1.gem
diff --git a/rubygem-bundler.spec b/rubygem-bundler.spec
index d2bdfe7..dcfefe0 100644
--- a/rubygem-bundler.spec
+++ b/rubygem-bundler.spec
@@ -8,8 +8,8 @@
 
 Summary: Library and utilities to manage a Ruby application's gem dependencies
 Name: rubygem-%{gem_name}
-Version: 1.1.4
-Release: 2%{?dist}
+Version: 1.2.1
+Release: 1%{?dist}
 Group: Development/Languages
 License: MIT
 URL: http://gembundler.com
@@ -67,7 +67,9 @@ mkdir -p %{buildroot}/%{_bindir}
 cp -a .%{_bindir}/* \
         %{buildroot}%{_bindir}/
 
-find %{buildroot}%{gem_instdir}/bin -type f | xargs chmod a+x
+find %{buildroot}%{gem_instdir}/bin -type f | xargs chmod 755
+find %{buildroot}%{gem_instdir}/lib/bundler/templates/newgem/bin -type f | xargs chmod 755
+chmod 755 %{buildroot}%{gem_instdir}/lib/bundler/templates/Executable*
 
 # Remove bundled libraries
 rm -rf %{buildroot}/%{gem_libdir}/bundler/vendor
@@ -123,6 +125,10 @@ LANG=en_US.utf-8 RUBYOPT="-I%{gem_dir}/gems/json-%{json_version}/lib -I%{_libdir
 %doc %{gem_docdir}
 
 %changelog
+* Fri Nov 02 2012 Bohuslav Kabrda <bkabrda@redhat.com> - 1.2.1-1
+- Update to Bundler 1.2.1.
+- Fix permissions on some executable files.
+
 * Sat Jul 21 2012 Fedora Release Engineering <rel-eng@lists.fedoraproject.org> - 1.1.4-2
 - Rebuilt for https://fedoraproject.org/wiki/Fedora_18_Mass_Rebuild
 
diff --git a/sources b/sources
index 48eb7ed..fc3c73d 100644
--- a/sources
+++ b/sources
@@ -1 +1 @@
-82dfe48d7ca8a28696e6a31e68d9015c  bundler-1.1.4.gem
+76a43745352365221b2b7ad06e7a409a  bundler-1.2.1.gem