---

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Exhibit 4(b)19

# FORM OF PURCHASE
AGREEMENT

THIS
PURCHASE AGREEMENT (the Agreement) is made and entered into on
June 21, 2009 by and among LUMENIS Ltd., a company incorporated under the laws
of the State of Israel, of Yokneam Industrial Park, P.O.B. 240, Yokneam 20692, Israel (the
Company) and the investor listed on Schedule 1
hereto (the Investor).

# RECITALS

A.        The
Board of Directors of the Company has (i) determined that it is in the best
          interests of the Company to enter into, deliver and perform this Agreement and
          the transactions contemplated hereby, including raising capital by means of
          issuance of Company Shares (as defined herein); (ii) approved this Agreement
and           the transactions contemplated hereby; and (iii) determined to recommend
that the           shareholders of the Company vote to approve the Shareholders
Resolution.

B.        The
Investor desires to purchase and the Company desires to issue and sell to           the
Investor Company Shares and Warrants (as defined herein) against the           investment
by the Investor of the Purchase Price set forth opposite such           Investors
name on Schedule 1, under the terms and           conditions of this
Agreement.

C.        The
Company and the Investor desire to make certain representations, warranties,
          covenants and other agreements in connection with the transactions contemplated
          hereby.

NOW,
THEREFORE, in consideration of the mutual agreements, covenants and other promises set
forth herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged and accepted, the parties hereby agree as follows:

# ARTICLE I

# DEFINITIONS

1.1        Definitions.
For all purposes of this Agreement, the following terms shall have the following
respectivemeanings:

| | (a)       affiliate (and
words of similar import) shall           mean as set forth in Rule 405 promulgated under
the Securities Act.
| | ---------------------------------------------------------------------------------------------------------------------------------------

| | (b)       Agate  shall
mean Agate Medical           Investments (Cayman) L.P. and Agate Medical Investment L.P.
| | ------------------------------------------------------------------------------------------------------------------

| | (c)       Agreement shall
have the meaning set forth in           the recitals of this Agreement.
| | ---------------------------------------------------------------------------------------------------

| | (d)       Amendment
to Registration Rights Agreement shall have the meaning set forth
in Section 2.3(b) hereof.
| | -----------------------------------------------------------------------------------------------------------------

| | (e)       Bank shall
mean Bank Hapoalim B.M.
| | ----------------------------------------------



---

---

| | (f)Bank
Debt shall mean all Indebtedness owed by any           member of the
Company Group to the Bank and each of its Subsidiaries and           affiliates.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)       Business
Day shall mean each day that is not a           Saturday, Sunday or
holiday on which banking institutions are obligated by law           or executive order
to close.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)       Charter
Documents shall have the meaning set           forth in Section 3.1(b)
hereof.
| | --------------------------------------------------------------------------------------------------

| | (i)       Closing shall
have the meaning set forth in           Section 2.2 hereof.
| | -------------------------------------------------------------------------------------

| | (j)       Closing
Date shall have the meaning set forth           in Section 2.2
hereof.
| | ------------------------------------------------------------------------------------------

| | (k)       Companies
Law shall mean the Israeli Companies           Law, 5759-1999
together with the regulations promulgated thereunder, all as           amended.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (l)       Company shall
have the meaning set forth in the           recitals to this Agreement.
| | -------------------------------------------------------------------------------------------------

| | (m)       Company
General Meeting shall have the meaning           set forth in Section 5.3
hereof.
| | -----------------------------------------------------------------------------------------------------

| | (n)       Company
Group shall mean collectively, the           Company and its
Subsidiaries.
| | ----------------------------------------------------------------------------------------------

| | (o)       Company
Material Adverse Effect with respect to           the Company Group,
taken as a whole, means any change, event, fact, violation,           inaccuracy,
circumstance or effect (each, an Effect) that,           individually
or taken together with all other Effects, has a material adverse           effect on the
condition (financial or otherwise), properties, assets,           liabilities, business,
capitalization, operations or results of operations of           the Company Group, taken
as a whole provided, however, that, in no event           shall any of the
following, alone or in combination, be deemed to constitute,           nor shall any of
the following be taken into account in determining whether           there has occurred,
a Company Material Adverse Effect: (i) Effects resulting           from conditions
generally affecting the industries or economies in which the           Company
participates or the global economy as a whole, to the extent that such
          conditions do not have a disproportionate impact on the Company Group; (ii)
          Effects resulting from an outbreak or escalation of war, armed hostilities,
acts           of terrorism or political instability, or any governmental or other
response to           any of the foregoing, whether occurring within or outside of
Israel; (iii) any           Effect resulting from compliance with the terms of, or the
taking of any action           required or permitted by, or any matter disclosed in, this
Agreement prior to           Closing, including, for purposes of clauses (i), (ii) and
(iii), (A) the impact           thereof on relationships, contractual or otherwise, with
customers, suppliers,           distributors, partners or employees; and (B) any
resulting shortfalls or           declines in revenue, margins or profitability; or (iv)
Effects resulting from           changes in applicable accounting requirements or
principles, or applicable Legal           Requirements.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (p)       Company
Options shall mean all issued and           outstanding options
(including commitments to grant options) to purchase or           otherwise acquire
Company Shares (whether or not vested) held by any person or           entity.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (q)       Company
Shares shall mean the Ordinary Shares,           par value NIS 0.1
per share, of the Company.
| | -----------------------------------------------------------------------------------------------------------------

- 2 -

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| | (r)       Company
Warrants means all warrants to purchase           Company Shares.
| | -------------------------------------------------------------------------------------

| | (s)       Contract shall
mean any written or oral           agreement, contract, subcontract, lease, binding
understanding, instrument,           note, bond, mortgage, indenture, option, warranty,
purchase order, license,           sublicense, benefit plan, obligation, commitment or
undertaking of any nature.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (t)       Disclosure
Schedule shall           have the meaning set forth in ARTICLE III.
| | ------------------------------------------------------------------------------------------

| | (u)       Exchange
Act shall mean the United States           Securities Exchange Act
of 1934, as amended.
| | ------------------------------------------------------------------------------------------------------------

| | (v)       Existing
Bank Agreements shall mean any and all           agreements,
understandings, arrangements, undertakings and others, between the           Company
Group and the Bank that are in effect on the date hereof.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (w)       Extraordinary
General Meeting shall have the           meaning set forth in the
Companies Law.
| | ----------------------------------------------------------------------------------------------------------

| | (x)       GAAP shall
mean generally accepted accounting           principles in the United States consistently
applied.
| | -------------------------------------------------------------------------------------------------------------------------

| | (y)       Governmental
Entity shall have the meaning set           forth in Section 3.5(b)
hereof.
| | ----------------------------------------------------------------------------------------------------

| | (z)       Indebtedness shall
mean any principal,           interest, premiums, fees, indemnifications, reimbursement,
penalties, damages           and other liabilities payable under the documentation
governing any such           indebtedness, in respect of all indebtedness of the Company
Group for money           borrowed from third parties, including (i) any obligation of,
or any obligation           guaranteed by, any member of the Company Group for the
repayment of borrowed           money, whether or not evidenced by bonds, debentures,
notes or other           instruments, (ii) all indebtedness of the Company Group due and
owing with           respect to letters of credit, surety bond, performance bond or other
guarantee           of contractual performance, (iii) any deferred payment obligation of,
or any           such obligation guaranteed by, any member of the Company Group for the
payment           of the purchase price of property or assets evidenced by a note or
similar           instrument, (iv) obligation of any member of the Company Group under
interest           rate and currency swaps, caps, floors, collars or similar agreements
or           arrangements intended to protect the Company Group against fluctuations in
          interest or currency rates.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (aa)Investor shall
mean as set forth in the           recitals to this Agreement and any successor or
assignee thereof.
| | -------------------------------------------------------------------------------------------------------------------------

| | (bb)       Investors shall
mean the Investor and each           other investor entering into an agreement with the
Company which is           substantially the same as this Agreement.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (cc)       knowledge or
          known shall mean, with respect to any fact,
          circumstance, event or other matter in question, the knowledge of such fact,
          circumstance, event or other matter of (A) an individual, if used in
          reference to an individual, (B) with respect to any Person (other than the
          Company Group) that is not an individual, the executive officers, directors and
          senior legal and financial personnel of such Person (such individuals are
          collectively referred to herein as the Entity           Representatives),
or (C) with respect to the Company Group, the           executive officers, directors and
senior legal and financial officers of the           Company. Any such individual or
Entity Representative will have or be deemed to           have knowledge of a particular
fact, circumstance, event or other matter if           (i) such fact, circumstance,
event or other matter is actually known to           such individual or Entity
Representative or is stated in one or more documents           (whether written or
electronic, including electronic mails sent to or by such           individual or Entity
Representative) in, or that have been in, the possession of           such individual or
Entity Representative; or (ii) such individual, when taking           into account his or
her position and responsibilities, should reasonably be           expected to become
aware of such fact or other matter after conducting           reasonable inquiry.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 3 -

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| | (dd)       Legal
Requirements shall mean any Israeli, U.S.           federal, state
or municipal or foreign law, statute, constitution, principle of           common law,
resolution, ordinance, code, edict, decree, rule, regulation, ruling           or
requirement issued, enacted, adopted, promulgated, implemented or otherwise           put
into effect by or under the authority of any Governmental Entity.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ee)       Legend
Removal Date shall have the meaning set forth in Section 5.1
hereof.
| | ----------------------------------------------------------------------------------------

| | (ff)       Lien(s) shall
mean any mortgage, pledge,           assessment, security interest, lease, lien,
easement, covenant, condition,           restriction, levy, charge, option, equity,
restriction or other encumbrance of           any kind, any conditional sale Contract,
title retention Contract, voting           Contract or Contract relating to the
registration, sale or transfer (including           Contracts relating to rights of first
refusal, co-sale rights or           drag-along rights) of any capital stock
of any member of the Company           Group, or other Contract that give rise to any of
the foregoing.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (gg)       Majority
Investors shall mean (i) at any time           prior to Closing,
Investors that are due to purchase at least 60% of the           Purchased Shares, and
(ii) at any time after Closing, Investors that have           purchased and continue to
hold at least 60% of the Purchased Shares issued by           the Company.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (hh)       member
of the Company Group shall mean each of           the Company and
its Subsidiaries.
| | -------------------------------------------------------------------------------------------------------

| | (ii)       NIS shall
mean the New Israeli Shekel.
| | ---------------------------------------------------

| | (jj)       Option
Plans shall mean each share option plan,           program or
arrangement of the Company Group, as amended from time to time.
| | -------------------------------------------------------------------------------------------------------------------------------------------------

| | (kk)       Permitted
Transferee shall refer, with           respect to any Investor
or subsequent assignee, to (1) its spouse, parents,           siblings or lineal
descendant, (2) its affiliate, (3) as to any Person which is           a partnership,
limited partnership or limited liability company, (i) any of its           general and
limited partners; (ii) any Person controlling or managing (as a           general partner
or otherwise) its limited or general partners, either directly           or through an
entity controlled by such person or entity; (iii) any entity (and           its partners
or members) managed by the same management company or managing           general partner
or by an entity which controls, is controlled by, or is under           common control
with, such management company or managing general partner; (iv)           any Person (and
its partners or members) which controls, is controlled by or is           under common
control with such Investor or subsequent assignee or the holders of           interest in
the entities set forth in items (i)-(ii), and (v) any entity over           which such
Investor or subsequent assignee (or its affiliates) exercises           investment
discretion or acts as a principal investment advisor, and any entity           managed by
any of the above said entities; (4) as to any Person which holds any           securities
or interests in a trust, the beneficiary or beneficiaries for whom           such Person
is holding in trust; (5) the surviving entity in the merger of any           such Person
with another company, provided, in each case, that the Permitted           Transferee has
executed a written undertaking to comply with the provisions of           this Agreement.
The term control (and words of similar import) shall           mean as set
forth in Rule 405 promulgated under the Securities Act or (6) a           purchaser of
Agates holdings in all or substantially all of its portfolio           companies.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 4 -

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| | (ll)       Person shall
mean an individual, a corporation,           a partnership, an association, a trust, an
enterprise or other entity or           organization, including a government or political
subdivision or an agency or           instrumentality thereof.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (mm)       Proxy
Statement shall           have the meaning set forth in Section 5.4
hereof.
| | ----------------------------------------------------------------------------------------------

| | (nn)Price
Per Shareshall have the meaning set forth in           Section 2.1
hereof.
| | --------------------------------------------------------------------------------------

| | (oo)       Purchase
Price means the aggregate price to be           paid by each
Investor at Closing which is equal to the number of Purchased           Shares to be
purchased by such Investor multiplied by the Price Per Share.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (pp)       Purchased
Securities means the Purchased           Shares, the Warrants and
the Warrant Shares.
| | ------------------------------------------------------------------------------------------------------------

| | (qq)       Purchased
Shares means the Company Shares to be           issued to the
Investor under this Agreement at Closing and the Company Shares to           be issued to
the other Investors under substantially similar agreements entered           into between
the Company and such Investors.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (rr)       Registration
Rights Agreement shall mean that           certain Registration
Rights Agreement, dated December 5, 2006, by and among the           Company, the
Investors listed therein and the Bank.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ss)       Related
Agreements shall mean the Amendment to           Registration Rights
Agreement, the Warrants and any and all other agreements,           instruments,
certificates or other documents delivered by the Company in           connection with the
consummation of the transactions contemplated hereby.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (tt)       Required
Company Shareholder           Vote shall mean the affirmative vote
of a majority of the           voting power of the Company Shares present and voting
thereon at the Company           General Meeting at which a quorum is present, provided
that either (i) such           majority includes at least one-third (1\3) of the Company
Shares of those           shareholders that do not have a personal interest (as such term
is defined under           the Companies Law) in the approval of the Shareholders
Resolution, who are           present in person or by proxy and vote on such Shareholders
Resolution; in a           count of all of the votes of such shareholders, abstentions
shall not be taken           into account; or (ii) the total Company Shares voted against
such Shareholders           Resolution by those shareholders that do not have a personal
interest in the           approval of such Shareholders Resolution does not exceed 1 per
cent of all the           voting power in the Company.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (uu)SEC shall
mean the United           States Securities and Exchange Commission.
| | ------------------------------------------------------------------------------------

- 5 -

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| | (vv)       SEC
Documents shall have the meaning set forth           in Section 3.6(a)
hereof.
| | -----------------------------------------------------------------------------------------------

| | (ww)       Securities
Act shall mean the United States           Securities Act of 1933,
as amended.
| | ------------------------------------------------------------------------------------------------------

| | (xx)       Shareholders
Resolution shall have the meaning           set forth in Section
5.3(a) hereof.
| | ---------------------------------------------------------------------------------------------------------

| | (yy) Subsidiary shall
mean,           with respect to any Person, any other Person of which more than 50% of
the           securities or other ownership interests having by their terms ordinary
voting           power to elect a majority of the board of directors, or of other Persons
          performing similar functions, of such other Person is directly or indirectly
          owned or controlled by such Person, by one or more of such Persons
          Subsidiaries (as defined in the preceding clause) or by such Person and any one
          or more of such Persons Subsidiaries.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (zz)Warrants means
warrants to purchase Company           Shares, at an exercise price of $1.30 per each
share, in the form attached           hereto as Exhibit A.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (aaa)       Warrant
Shares shall mean the Company Shares           issuable upon
exercise of the Warrants.
| | ------------------------------------------------------------------------------------------------------------

1.2        Other
Terms. Other terms may be defined elsewhere in the text of this Agreement
and, unless otherwise indicated, shall have such meanings throughout this Agreement.

1.3        Other
Definitional Provisions.

| | (a)        The
terms defined in the singular shall have a comparable meaning when used in           the
plural, and vice versa.
| | -------------------------------------------------------------------------------------------------------------------------------

| | (b)        Unless
otherwise noted, all references to $ shall be nominated in           U.S.
dollars.
| | ------------------------------------------------------------------------------------------------------

# ARTICLE II

# SALE AND PURCHASE OF
SECURITIES

2.1        Sale
and Purchase of Purchased Securities. At the Closing and subject to the
terms and conditions of this Agreement (including, without limitations, the payment in
full by the Investor of the Purchase Price set forth opposite such Investors name
on Schedule 1), the Company will issue and sell to the Investor and
the Investor will buy from the Company, (i) such number of Purchased Shares as listed
opposite such Investors name on Schedule 1 attached hereto, in
consideration for a price per Purchased Share of $1.10 (the Price Per Share)
and (ii) a Warrant to purchase such number of Company Shares as listed opposite such
Investors name on Schedule 1 attached hereto, for no
additional consideration. The Company intends to enter, prior to Closing, into additional
agreements with other Investors which are substantially similar to this Agreement,
provided such substantially similar agreements do not grant additional and/or superior
rights to any one Investor, that would result in an aggregate Purchase Price, under all
agreements, including this Agreement, of approximately $15 million. At the election of
the Company, subject to the consent of the Majority Investors, which shall not be
unreasonably withheld, the Company may issue up to an additional 4,545,455 Purchased
Shares to additional Investors that will execute and deliver substantially similar
agreements, for an additional Purchase Price of up to $5 million and each such additional
Investor shall be issued a Warrant to purchase a number of Company Shares equal to 50% of
the number of Purchased Shares to be issued to such Investor.

- 6 -

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2.2        Closing.
Unless this Agreement is earlier terminated pursuant to Section 7.1 hereof, the
consummation of the sale of the Purchased Shares and the Warrants to the Investor (the
Closing) will take place, subject to (i) the satisfaction or waiver of
the conditions set forth in ARTICLE VI hereof and (ii) the closing and
consummation, prior to or concurrently with the Closing, of the sale of Purchased Shares
and Warrants to other Investors, pursuant to substantially similar agreements, as
aforesaid, entered into, prior to the Closing, between the Company and other Investors,
such that the aggregate Purchase Price paid by the Investor and such other Investors is
no less than US $15,000,000 , on June 25, 2009, at the offices of Meitar, Liquornik, Geva
& Leshem, Brandwein, Law Offices, 16 Abba Hillel Road, Ramat Gan, Israel, unless
another time or place is mutually agreed upon in writing by the Majority Investors and
the Company. The date upon which the Closing actually occurs shall be referred to herein
as the Closing Date. All actions at the Closing and all transactions
occurring at the Closing shall be deemed to take place simultaneously and no transactions
shall be deemed to have been completed or any document delivered until all such
transactions have been completed and all required documents delivered.

2.3        Investors
Deliveries at the Closing. At or prior to the Closing, the Investor shall
deliver, or cause to be delivered, to the Company the following:

| | (a)       By
wire transfer of immediately available funds to an account designated by the
          Company in writing prior to the Closing Date, the Purchase Price for the
          Purchased Shares purchased by the Investor as set forth in Schedule1 attached
hereto.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       A
counterpart of the amendment to Registration Rights Agreement, in the form
          attached hereto as Exhibit B (the Amendment to
          Registration Rights Agreement) duly executed by the Investor.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2.4        Companys
Deliveries at the Closing. At or prior to the Closing, the Company shall
deliver, or cause to be delivered, to the Investor the following:

| | (a)       A
certificate, dated as of the Closing Date, duly executed on behalf of the
          Company by its Chief Executive Officer, in his capacity as an officer of the
          Company, certifying as to the fulfillment of the conditions specified in
          Section 6.2(d) hereof;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       A
certificate, dated as of the Closing Date and duly executed on behalf of the
          Company by its Secretary, in his capacity as the secretary of the Company,
          certifying (i) the resolutions of the Board of Directors of the Company and the
          Audit Committee thereof, in the forms attached hereto as Exhibit
          C, whereby this Agreement, the Related Agreements, and the
          transactions contemplated hereby and thereby were approved, (ii)  the
          Shareholders Resolution, and (iii) the incumbency of each of the
          Companys officers authorized to sign, on behalf of the Company, this
          Agreement, the Related Agreements and any agreements, instruments, documents
and           certificates executed or to be executed and delivered by the Company
pursuant           hereto or thereto;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       Duly
executed minutes of the Company General Meeting whereby the           Shareholders Resolution
was approved by the Required Company Shareholder           Vote;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       Duly
executed irrevocable letter of instructions from the Company to American           Stock
Transfer and Trust Company, the transfer agent for the Company Shares           (such
transfer agent or any successor thereof is referred to herein as the Transfer
Agent), instructing the recordation of the issuance           of the Purchased
Shares to the Investor and the issuance of share certificate(s)           registered in
the name of the Investor representing the number of Purchased           Shares purchased
by the Investor as set forth on Schedule 1          attached hereto;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 7 -

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| | (e)       Warrant
in the name of the Investor representing the number of Warrant Shares           set forth
opposite to the Investors name on Schedule           1 hereto;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)       Written
opinion from legal counsel to the Company dated as of the Closing Date           and
addressed to the Investor, in the form attached hereto as Exhibit           D;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)       A
counterpart of the Amendment to Registration Rights Agreement duly executed by
          the Company; and
| | ---------------------------------------------------------------------------------------------------------------------

2.5        Recapitalization
Adjustments. In the event of any stock split, reverse stock split, stock
dividend (including any dividend or distribution of securities convertible into capital
stock), reorganization, reclassification, combination, recapitalization or other like
change with respect to the Company Shares occurring after the date hereof and prior to
the Closing, all references in this Agreement to specified numbers of shares and all
calculations provided for that are based upon numbers of shares of any class or series
(including, without limitation, price per share and exercise price) affected thereby,
shall be equitably adjusted to the extent necessary to provide the parties the same
economic effect as contemplated by this Agreement prior to such stock split, reverse
stock split, stock dividend, reorganization, reclassification, combination,
recapitalization or other like change.

# ARTICLE III

# REPRESENTATIONS AND
WARRANTIES OF THE COMPANY

Subject
to the disclosures set forth in the disclosure schedule attached hereto as Exhibit
E (the Disclosure Schedule) (each of which disclosures,
shall clearly indicate the Section and, if applicable, the Subsection of this Article III
to which it relates (unless and only to the extent the relevance to other representations
and warranties is readily apparent from the actual text of the disclosures), and each of
which disclosures shall also be deemed to be representations and warranties made by the
Company to the Investor under this Article III), the Company hereby represents and
warrants, on behalf of and with respect to each member of the Company Group, to the
Investor, as follows:

3.1        Organization
of the Company

| | (a)       Each
member of the Company Group is duly organized, validly existing and, to the
          extent that such jurisdiction recognizes the concept of good standing, in good
          standing under the laws of the jurisdiction of its incorporation or formation
          and has the requisite power and authority to own its properties and to carry on
          its business as currently conducted.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       The
Company made available to the Investors a true and correct copy of its
          Memorandum of Association and Articles of Association, as in effect on the date
          hereof (collectively, the Charter Documents). Such Charter
          Documents are in full force and effect. The Company is not in material
violation           of any of the provisions of its Charter Documents.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       The
Company is not and shall not be as of immediately after Closing, an           investment
company within the meaning of the Investment Company Act           of 1940, as
amended, and the rules and regulations of the SEC promulgated           thereunder.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 8 -

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3.2        Company
Capital Structure

| | (a)       The
registered share capital of the Company is NIS 90,000,000 divided into
          900,000,000 Company Shares, of which 201,699,060 Company Shares are issued and
          outstanding as of the date hereof and 35,527 Company Shares are dormant shares.
          Other than as set forth in this Section 3.2(a), no Company Shares are dormant
          shares and no shares are held in treasury by any member of the Company Group.
          All outstanding Company Shares, when issued, were duly authorized, validly
          issued, fully paid and non-assessable and are currently not subject to
          preemptive rights created by statute, the Charter Documents of the Company, or
          any agreement to which the Company is a party or by which it is otherwise
bound.           All outstanding Company Shares, Company Options and Company Warrants
have been           issued or repurchased (in the case of shares that were outstanding
and           repurchased by any member of the Company Group) (X) in compliance with
all           applicable securities laws and other applicable Legal Requirements, and
          (Y) in material compliance with all applicable requirements set forth in
          Contracts. There are no declared or accrued but unpaid dividends with respect
to           any Company Shares. Except as set forth on Section 3.2(a) of the Disclosure
          Schedule and for proxies that may have been given by beneficial owners of
          Company Shares holding such shares through brokers, authorizing their brokers
to           vote such Company Shares, there are no voting trusts, proxies, or other
          agreements or understandings with respect to the voting of shares of the
Company           to which the Company is a party or by which it is bound, or of which
the Company           has Knowledge. To the Companys Knowledge, , there are no
agreements to           which the Company is a party relating to the registration, sale
or transfer           (including agreements relating to rights of first refusal, co-sale
rights or           drag-along rights) of any capital stock of the Company,
other than           under the Registration Rights Agreement (as shall be amended by the
Amendment to           Registration Rights Agreement).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       The
Purchased Shares and the Warrant Shares have been duly authorized and, when
          issued, delivered and paid for in the manner set forth in this Agreement or,
          with respect to the Warrant Shares, in the manner set forth in the Warrants,
          will be validly issued, fully paid, nonassessable, free and clear of all Liens
          and duly registered in the name of the Investor in the Companys share
          register. On the Closing Date the Company shall have reserved from its duly
          authorized share capital the number of Company Shares for issuance of the
          Warrant Shares. The Purchased Shares and the Warrant Shares will have the
          rights, preferences, privileges and restrictions set forth in the Charter
          Documents, as may be amended from time to time. The execution and delivery by
          the Company of this Agreement and the consummation of the transactions
          contemplated hereby will not obligate the Company to issue Company Shares or
          other securities to any other person or entity and will not result in the
          adjustment of, or give rise to a right to adjust, the exercise, conversion,
          exchange or reset price or any other term of any outstanding security. The
          Company does not have outstanding stockholder purchase rights or poison
          pill or any similar arrangement in effect giving any person or entity the
          right to receive or purchase any equity interest in the Company upon the
          occurrence of certain events.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       The
Company has reserved an aggregate amount of 26,910,558 Company Shares for
          issuance under the Option Plans upon the exercise of Company Options, of which:
          (i) 17,643,345 Company Shares are subject to outstanding and unexercised
Company           Options, as of the date hereof; and (iii) 9,267,213 Company Shares
remain           available for issuance thereunder.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       Section
3.2(d) of the Disclosure Schedule sets forth, as of the date hereof, a           true,
correct and complete list of all holders of outstanding Company Warrants,
          including the number of shares and type of Company Shares subject to each such
          warrant, the date of grant, the exercise or vesting schedule (and the terms of
          any acceleration thereof), the exercise price per share and the term of each
          such Company Warrant.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (e)       Other
than as set forth in Sections 3.2(a), 3.2(c), 3.2(d) and 3.2(e) of           the
Disclosure Schedule and the transactions contemplated by this Agreement,           there
are no (i) securities of any member of the Company Group authorized,
          convertible into or exchangeable for shares of capital stock or voting
          securities of such member of the Company Group, (ii) options, warrants,
          calls, rights, convertible securities or other rights to acquire from the
member           of the Company Group, and no obligation of the member of the Company
Group to           issue, deliver, sell, repurchase or redeem, or cause to be issued,
delivered,           sold, repurchased or redeemed, now or in the future, any capital
stock, voting           securities or securities convertible into or exchangeable for
capital stock or           voting securities of the member of the Company Group, and (iii) equity
          equivalents, phantom or notional equity interests, interests in the ownership,
          earnings or price per security of the member of the Company Group or other
          similar rights.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)       Other
than as set forth in Section (f) of the Disclosure Schedule, no           bonds,
debentures, notes or other indebtedness of any member of the Company           Group (i)
granting the holder thereof the right to vote on any matters on which
          shareholders may vote (or which is convertible into, or exchangeable for,
          securities having such right) or (ii) the value of which is in any way
          based upon or derived from capital or voting share capital of the Company, are
          issued or outstanding as of the date hereof.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)       The
Company has not agreed, is not obligated to make, and is not bound by any
          Contract under which it may become obligated to make any future investment in,
          or capital contribution to, any Person (other than in its Subsidiaries).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.3        Subsidiaries.
Section 3.3of the Disclosure Schedule lists each of the Companys
Subsidiaries as of the date hereof, the holdings of the Company in such Subsidiaries and
the jurisdiction of incorporation or formation of each such Subsidiary. All outstanding
shares of the capital stock or other securities of each of the Companys
Subsidiaries are duly authorized, validly issued, fully paid, non-assessable and were
issued in compliance with all applicable securities laws and other applicable Legal
Requirements, all such shares or other securities are owned by the Company, beneficially
and of record, in each case, free and clear of all Liens, except for Liens under the
Existing Bank Agreements. Except as set forth in Section 3.3of the Disclosure
Schedule, neither the Company nor any of its Subsidiaries owns, directly or indirectly,
any equity or similar interest in, or any interest convertible into or exchangeable for,
any equity or similar interest in, any corporation, partnership, joint venture or other
similar business association or entity.

3.4        Authority.

| | (a)       Other
than as listed in Section 3.53.5(b) of the Disclosure Schedule, the           Company has
taken any and all action necessary under all applicable Legal           Requirements and
the Charter Documents and has all requisite corporate power and           authority to
enter into this Agreement and any Related Agreements to which it is           a party
and, subject to obtaining the approval by the Required Company           Shareholder Vote
with respect to the Shareholder Resolution, to consummate the           transactions
contemplated by this Agreement and the Related Agreements. The           execution and
delivery of this Agreement and any Related Agreements to which the           Company is a
party and the consummation of the transactions contemplated by this           Agreement
and the Related Agreements have been duly authorized by all necessary           corporate
action on the part of the Company and no further action is required on           the part
of the Company to authorize the Agreement and any Related Agreements to           which
it is a party and the transactions contemplated hereby and thereby,           subject to
obtaining the approval by the Required Company Shareholder Vote with           respect to
the Shareholder Resolution.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 10 -

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| | (b)       The
Board of Directors of the Company and its Audit Committee, by resolutions           duly
adopted at duly held meetings (and not thereafter modified or rescinded) by           the
vote of the Board of Directors of the Company and the Audit Committee, has           (i)
determined that it is in the best interests of the Company to enter into,
          deliver and perform this Agreement, the Related Agreements and the transactions
          contemplated hereby and thereby; (ii) approved and adopted this Agreement, the
          Related Agreements, and the transactions contemplated hereby and thereby; and
          (iii) directed that the matters set forth in the Shareholder Resolution be
          submitted to the vote of the shareholders of the Company and recommended that
          the Companys shareholders grant such approval.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       This
Agreement has been, and each of the Related Agreements to which the Company           is
a party will be as of their dates of execution, duly executed and delivered           by
the Company and, assuming the due authorization, execution and delivery by           the
other parties hereto and thereto, constitute the valid and binding           obligations
of the Company enforceable against it in accordance with their           respective
terms, except as such enforceability may be limited by principles of           public
policy and subject to the laws of general application relating to           bankruptcy,
insolvency and the relief of debtors and rules of law governing           specific
performance, injunctive relief or other equitable remedies.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.5        No
Conflicts; Consents.

| | (a)       The
execution, delivery and performance by the Company of this Agreement, and           any
Related Agreement to which the Company is a party, and the consummation of           the
transactions contemplated hereby and thereby, will not conflict with or           result
in any violation of or default under (with or without notice or lapse of           time,
or both) or give rise to a right of termination, cancellation,           modification or
acceleration of any obligation or loss of any benefit under           (i) any
provision of the Charter Documents of the Company, subject to           obtaining the
Required Company Shareholder Vote, (ii) any law, rule,           regulation, order,
judgment or decree applicable to the Company or by which any           of its material
properties is bound or affected, subject to obtaining the           Required Company
Shareholder Vote, or (iii) any material Contract. The           execution and
delivery by the Company of this Agreement, and any Related           Agreement to which
the Company is a party, and the consummation of the           transactions contemplated
hereby and thereby, will not result in the creation of           any Lien on any of the
properties or assets of the Company.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       Other
than as listed in Section 3.5(b) of the Disclosure Schedule, the execution           and
delivery by the Company of this Agreement and any Related Agreement to which
          the Company is a party, and the consummation of the transactions contemplated
          hereby and thereby, will not require any consent, waiver, approval, order or
          authorization or permit of, declaration or filing with or notification to, any
          United States, Israeli, or foreign court, administrative agency, commission,
          federal, states, local, governmental or regulatory authority (a           Governmental
Entity) with respect to the Company.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       The
Existing Bank Agreements are in full force and effect and the Company is not           in
default under the Existing Bank Agreements.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------

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|3.6        SEC
Documents
|------------------------

| | (a)       The
Company Shares are registered pursuant to Section 12(b) of the Exchange Act,
          and, since April 30, 2007, the Company has timely filed with or furnished on
          Form 6-K (or other applicable form) to the SEC all reports, schedules, forms,
          statements and other documents required to be filed with or furnished on Form
          6-K (or other applicable form) to the SEC by it pursuant to the reporting
          requirements of the Exchange Act.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       The
Company is a foreign private issuer (as such term is defined in           the
rules and regulations under the Securities Act and the Exchange Act).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       The
Company has made available to the Investors prior to the date hereof copies           of
all annual reports on Form 20-F filed by Company with the SEC since April 30,
          2007 including all amendments thereto and any report on Form 6-K submitted by
          the Company to the SEC since April 30, 2007 (the Forms 20-F and the Forms 6-K
          are collectively referred to herein as the SEC Documents).
          Each of the SEC Documents (including the financial statements included
therein),           as of the respective date thereof (or, if amended or superseded by a
filing or           submission, as the case may be, prior to the Closing Date, then on
the date of           such filing or submission, as the case may be), did not contain any
untrue           statement of a material fact nor omit to state a material fact necessary
in           order to make the statements made therein, in light of the circumstances
under           which they were made, not misleading. Each SEC Document, as it may have
been           subsequently amended by filings or submissions, as the case may be, filed
or           submitted by the Company with or to the SEC since April 30, 2007 and prior
to           the date hereof complied in all material respects with the requirements of
the           Exchange Act and the rules and regulations promulgated thereunder
applicable to           such SEC Document.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       The
financial statements of the Company included in the SEC Documents have been
          prepared in accordance with GAAP) applied on a consistent basis during
          the periods involved, present fairly the financial position of the Company as
of           the dates indicated therein and the results of its operations and cash flows
for           the periods therein specified, subject, in the case of unaudited financial
          statements for interim periods, to normal year-end audit adjustments, and are
          consistent with the books and records of the Company (which books and records
          are correct and complete.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.7        Absence
of Certain Changes

Except as set forth in Section 3.7 of
the Disclosure Schedule and/or in the SEC Documents, from and after December 31, 2007 and
through the date hereof, the Company has not:

| | (a)        Suffered
any loss to its property or incurred any material damage, award or judgment for injury to
the property or business of others or for injury to any Person;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       Made
any material increase in the rate of compensation, commission, bonus or           other
remuneration payable to any of its directors, officers, or key employees,           other
than in the ordinary course of business;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       Sold,
assigned, licensed, leased or transferred any material asset, other than           in the
ordinary course of business;
| | --------------------------------------------------------------------------------------------------------------------------------------

| | (d)       Made
any change in its accounting methods, policies, practices or principles           other
than as required under GAAP;
| | -----------------------------------------------------------------------------------------------------------------------------------

- 12 -

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| | (e)       Issued,
pledged, encumbered, sold or disposed of any of its securities other           than
issuances of Company Shares upon exercise of Company Options under the           Option
Plans and/or Company Warrants;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)       Declared,
set aside, paid or made any dividend or other distribution with           respect to any
of its share capital, or otherwise redeemed, repurchased or           acquired any share
capital or other securities of the Company;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)       Subjected
any of its material assets or properties to any Lien or permitted any           of its
material assets or properties to be subjected to any Lien other than           pursuant
to the Existing Bank Agreements;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h)       Entered
into any transaction with any Affiliate, director, officer or           shareholder
(other than the payment of ordinary course compensation);
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)       Entered
into any Contract that (A) is required to be disclosed under the           instructions
of the SEC Documents; or (B) involves the exclusive license of any           intellectual
property of the Company or its Subsidiaries;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j)       Purchased
any real property or entered into any Lease therefor (including any           capitalized
lease obligations); or
| | ------------------------------------------------------------------------------------------------------------------------------------

| | (k)       Suffered
any other event which has caused, or is reasonably likely to cause a           Company
Material Adverse Effect.
| | ----------------------------------------------------------------------------------------------------------------------------------

3.8        Indebtedness;
Liabilities.

No member of the Company Group has
any Indebtedness other than the Bank Debt. The Bank Debt is, as of the date hereof, in the
amount set forth in Section 3.8 of the Disclosure Schedule. Except as disclosed in the SEC
Documents or in Section 3.8 of the Disclosure Schedule, the Company does not have any
liabilities, obligations or losses (whether liquidated or unliquidated, secured or
unsecured, absolute, accrued, contingent or otherwise) other than those incurred in the
ordinary course of business consistent with past practice.

3.9        Litigation.
Other than as listed in the SEC Documents and in Section 3.9 of the Disclosure Schedule,
there is no material action, suit, claim, injunctions, decrees, orders, judgments or
legal proceeding of any nature (collectively, Litigation) (other than
ex-parte) pending, or, to the Knowledge of the Company, threatened, against any
member of the Company Group, its properties (tangible or intangible) or any of its
current or former employees, members of management, officers and directors, in their
capacities as such. To the Companys Knowledge, there is no material investigation
or other proceeding pending or threatened, against any member of the Company Group, any
of its properties (tangible or intangible) or any of its current or former employees,
members of management, officers and directors, in their capacity as such, by or before
any Governmental Entity.

3.10        Private
Placement. Assuming the accuracy of the representations and warranties of
the Investors, the offer and sale of the Purchased Securities to the Investors as
contemplated hereby is exempt from the registration requirements of the Securities Act
and the securities laws of other jurisdictions. Neither the Company nor anyone acting on
its behalf, directly or indirectly, has or will sell, offer to sell or solicit offers to
buy any of the Investors Company Shares or Warrants or similar securities to, or solicit
offers with respect thereto from, or enter into any negotiations relating thereto with,
any person, or has taken or will take any action so as to bring the issuance and sale of
any of such securities under the registration provisions of the Securities Act and
applicable state securities laws, and neither the Company nor any of its affiliates, nor
any person acting on its or their behalf, has engaged in any form of general solicitation
or general advertising (within the meaning of Regulation D under the Securities Act) in
connection with the offer or sale of any of the Securities.

- 13 -

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3.11        Brokers and
Finders Fees. No broker, finder or investment banker is entitled to
any brokerage, finders or other fee or commission in connection with the origin,
negotiation or execution of this Agreement or in connection with the transactions
contemplated hereby based upon arrangements made by or on behalf of any member of the
Company Group.

3.12        Representations
Complete. None of the representations or warranties made by the Company
herein or in any exhibit or schedule hereto, including the Disclosure Schedule, or in any
certificate furnished by the Company pursuant to this Agreement contains or will contain
at the Closing any untrue statement of a material fact, or omits or will omit at the
Closing to state any material fact necessary in order to make the statements contained
herein or therein, in the light of the circumstances under which made, not false or
misleading.

# ARTICLE IV

# REPRESENTATIONS AND
WARRANTIES OF THE INVESTOR

The
Investor hereby represents and warrants to the Company that on the date hereof and as of
the Closing Date, as though made at the Closing Date, as follows:

4.1        Organization
and Power. The Investor is duly organized and validly existing under the
laws of its jurisdiction of incorporation or formation and, to the extent that such
jurisdiction recognizes the concept of good standing, in good standing under the laws of
the jurisdiction of its incorporation or formation and has the requisite power and
authority to own its properties and to carry on its business conducted.

4.2        Authority.
The Investor has all requisite power and authority to enter into this Agreement and any
Related Agreements to which it is a party and to consummate the transactions contemplated
hereby and thereby. The execution and delivery of this Agreement and any Related
Agreements to which it is a party and the consummation of the transactions contemplated
hereby and thereby have been duly authorized by all necessary corporate action on the
part of the Investor. This Agreement and any Related Agreements to which the Investor is
a party have been duly executed and delivered by it and, assuming the due authorization,
execution and delivery by the other parties hereto and thereto, constitute its valid and
binding obligations, enforceable against it in accordance with their terms, except as
such enforceability may be limited by principles of public policy and subject to the laws
of general application relating to bankruptcy, insolvency and the relief of debtors and
rules of law governing specific performance, injunctive relief or other equitable
remedies.

4.3        Consents.
The execution and delivery by the Investor of this Agreement and any Related Agreements
to which it is a party and the consummation of the transactions contemplated hereby and
thereby, will not require any consent, waiver, approval, order or authorization or permit
of, or registration, declaration or filing with, or notification to any Governmental
Entity.

4.4        No
Conflicts. The execution and delivery of this Agreement and any Related
Agreement to which the Investor is a party do not, and the consummation of the
transactions contemplated hereby and thereby will not conflict with, or result in any
violation of or default under (with or without notice or lapse of time, or both) or give
rise to a right of termination, cancellation, modification or acceleration of any
obligation or loss of any benefit under (i) any provision of the Investors
incorporation or formation documents; or (ii) any law, rule, regulation, order, judgment
or decree applicable to it or by which any of its material properties are bound or
affected.

- 14 -

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4.5        Absence
of Litigation; No Voting Agreement. As of the date
hereof, the Investor is not engaged in, or a party to, or, to its Knowledge, threatened
with, any civil, criminal or administrative actions, suits, claims, proceedings or
investigations before any Governmental Entity, that seeks to restrain, materially modify
or invalidate this Agreement and the transactions contemplated hereby.

4.6        Experience;
Accredited Investor. (i) the Investor is knowledgeable, sophisticated and
experienced in making, and is qualified to make, decisions with respect to investments in
shares representing an investment decision like that involved in the purchase of the
Purchased Shares, including investments in securities issued by the Company, without
limitation of the representations and warranties included in ARTICLE III, has requested,
received, reviewed and considered all information it deems relevant in making an informed
decision to purchase the Purchased Shares and has had the opportunity to ask questions of
and receive answers from the Company concerning such information; (ii) the Investor is
acquiring the number of Purchased Securities set forth opposite its name on Schedule
1 hereto in the ordinary course of its business and for its own account
for investment only and with no present intention of distributing any of such Purchased
Securities and does not have any current arrangement or understanding with any other
persons regarding the distribution of such securities (this representation and warranty
not limiting the Investors right to sell or distribute in compliance with the
Securities Act and the rules and regulations thereunder); nothing contained herein shall
be deemed an undertaking by the Investor to hold the Purchased Securities for any period
of time; (iii) the Investor will not, directly or indirectly, offer, sell, pledge,
transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise
acquire or take a pledge of) any of the Purchased Securities, nor will the Investor
engage in any short sale that results in a disposition of any of the Purchased Securities
by the Investor, except in compliance with the Securities Act and the rules and
regulations thereunder and any applicable state securities laws; and (iv) the Investor is
an accredited investor within the meaning of Rule 501(a) promulgated under
the Securities Act. Neither such inquiries nor any other due diligence investigation
conducted by the Investor shall modify, limit or otherwise affect the Investors
right to rely on the Companys representations and warranties contained in this
Agreement.

4.7        Exemption
from Registration. The Investor understands that the Purchased Securities
are being offered and sold to it in reliance upon specific exemptions from the
registration requirements of the Securities Act, the rules and regulations thereunder and
state securities laws and that the Company is relying upon the truth and accuracy of, and
the Investors compliance with, the representations, warranties, agreements,
acknowledgments and understandings of the Purchaser set forth herein in order to
determine the availability of such exemptions and the eligibility of the Investor to
acquire the Purchased Securities.

4.8        Risk
of Loss. The Investor understands that its investment in the Purchased
Securities involves a significant degree of risk, including a risk of total loss of
Investors investment. The Investor understands that no representation is being made
as to the future value or market price of the Company Shares. The Investor has the
knowledge and experience in financial and business matters as to be capable of evaluating
the merits and risks of an investment in the Purchased Securities and has the ability to
bear the economic risks of an investment in the Purchased Securities.

- 15 -

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4.9        Transfer
or Resale. The Investor understands that, until all of the applicable
provisions of Section 5.2 hereof are satisfied, any certificates representing the
Purchased Securities will bear a restrictive legend in substantially the following form:

NEITHER THESE SECURITIES NOR
THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT) NOR HAVE THEY BEEN
REGISTERED WITH THE SECURITIES AUTHORITIES OF ANY STATE OR OTHER JURISDICTION, AND,
ACCORDINGLY, MAY NOT BE OFFERED, SOLD PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE OR OTHER JURISDICTION SECURITIES
LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY (WHICH OPINION SHALL NOT
BE REQUIRED FOR A SALE PURSUANT TO RULE 144(b)(1) UNDER THE SECURITIES ACT, PROVIDED THAT
THE COMPANY HAS RECEIVED CUSTOMARY REPRESENTATIONS CERTIFYING AS TO THE AVAILABILITY OF
SUCH RULE 144(b)(1).  THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF
THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY
SUCH SECURITIES.

# ARTICLE V

# COVENANTS

5.1        Conduct
of Business of the Company. Except as expressly contemplated by this
Agreement or to the extent that the Majority Investors shall otherwise consent in
writing, during the period from the date of this Agreement and continuing until the
earlier of the termination of this Agreement or the Closing, the Company shall, and shall
cause each member of the Company Group to conduct its business in the ordinary
course in substantially the same manner as heretofore conducted.

5.2        Removal
of Legends. Promptly following the earlier of (i) effectiveness of a
registration statement under the Securities Act with respect to the sale of Purchased
Securities or (ii) Rule 144(b)(1) under the Securities Act becoming available, the
Company shall (A) deliver to the Transfer Agent irrevocable instructions that the
Transfer Agent shall reissue a certificate representing Purchased Shares or Warrant
Shares without legends upon receipt by such Transfer Agent of: (a) the legended
certificates for such Purchased Shares or Warrant Shares; and (b) either (1) a customary
written representation by the Investor that Rule 144(b)(1) under the securities act
applies to the Purchased Shares or Warrant Shares represented thereby or (2) a written
statement by the Company that the Investor may sell the Purchased Shares or Warrant
Shares represented thereby in accordance with the Plan of Distribution contained in a
registration statement that was declared effective under the Securities Act (the date on
which the Transfer Agent receives all of the items listed in clauses (a), and (b) above,
the Legend Removal Date), and (B) if required by the Transfer Agent,
cause its counsel to deliver to the Transfer Agent one or more opinions to the effect
that the removal of such legends in such circumstances may be effected under the
Securities Act. From and after the Legend Removal Date, upon the Investors written
request, the Company shall promptly cause certificates evidencing the Purchased Shares
referred to in such written request to be replaced with certificates which do not bear
such restrictive legends, and Warrant Shares subsequently issued upon due exercise of the
Warrants shall not bear such restrictive legends, provided the provisions of clauses (a)
and (b) above, as applicable, are satisfied with respect to such Purchased Shares or
Warrant Shares.

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5.3        Company
General Meeting.

| | (a)       The
Company has called and gave notice of an Extraordinary General Meeting of           the
holders of Company Shares (the Company General Meeting)           in
which the shareholders of the Company will be requested to approve the
          resolution set forth in Exhibit F (the           Shareholders Resolution),
and (ii) caused the Proxy           Statement to be mailed to the Companys
shareholders. Subject to the notice           requirements of the Companies Law and the
regulations thereunder and the Charter           Documents, the Company General Meeting
shall be held as promptly as practicable           after the date hereof. The Company
shall use its best efforts to solicit from           its shareholders proxies in favor of
the adoption and approval of the           Shareholders Resolution. The Company
shall conduct the Company General           Meeting and solicit proxies with respect
thereto in compliance as to form and           substance with all applicable Legal
Requirements, including the Companies Law           and the Charter Documents.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       Without
the prior written consent of the Majority Investors, the Company may           adjourn or
postpone the Company General Meeting only: (i) if and to the extent           necessary
to provide any supplement or amendment to the Proxy Statement to           Companys
shareholders in advance of a vote on the Shareholders Resolution;           (ii) if, as
of the time for which such meeting is originally scheduled (as set           forth in the
Proxy Statement), there are insufficient Company Shares represented           (either in
person or by proxy) to constitute a quorum necessary to conduct the           business of
such meeting; or (iii) as may otherwise be required specifically by           applicable
Legal Requirements.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.4        Proxy
Statement; Board Recommendation.

| | (a)       The
Company prepared a proxy statement with respect to the Company General           Meeting
and the Shareholders Resolution (the Proxy           Statement).
The Proxy Statement complies as to form and substance with           applicable Legal
Requirements The Proxy Statement does not, as of its date,           contain any untrue
statement of a material fact, or omit to state any material           fact necessary in
order to make the statements contained therein, in light of           the circumstances
under which made, not false or misleading. The Investors and           the Company shall
cooperate (and shall cause their respective counsel, auditors,           agents and
representatives to cooperate) in the preparation of any supplement to           the Proxy
Statement, if such supplement is required.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       The
Proxy Statement includes a statement to the effect that the Board of           Directors
of the Company has recommended that the Companys shareholders           vote in
favor of and approve the Shareholders Resolutions at the Company           General
Meeting.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.5        Approvals
and Filings. The Company and the Investor shall use best efforts to
deliver and file, as promptly as practicable after the date of this Agreement, each
notice, report or other document required to be delivered by such party to, or filed by
such party with, any Governmental Entity with respect to this Agreement and the
transactions contemplated hereby and thereby. The Company and the Investor shall use best
efforts to obtain, as promptly as practicable after the date of this Agreement, all
consents and approvals that may be required pursuant to Legal Requirements in connection
with this Agreement, the Related Agreements and the transactions contemplated hereby and
thereby. The Company and the Investor shall cause all documents that they are responsible
for filing with any Governmental Entity under this Section 5.5 to comply as to form
and substance in all material respects with the applicable Legal Requirements and shall
keep each other apprised of the status of any communications with, and any inquiries or
requests for additional information from, any Governmental Entity and shall comply
promptly with any such inquiry or request. Whenever any event occurs which is required to
be set forth in an amendment or supplement to any such document or filing, the Company or
the Investor, as the case may be, shall promptly inform the other of such occurrence and
cooperate in filing with the applicable Governmental Entity, such amendment or
supplement.

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5.6        Confidentiality.
The Investor and any successor or assignee thereof, who receives from the Company or its
agents, directly or indirectly, any information concerning the Company Group which the
Company or any member of the Company Group has not made generally available to the
public, acknowledges and agrees that such information is confidential, and further agrees
that, for so long as such information is not public, it will not disseminate such
information to any person other than the employees, officers, consultants,
representatives and advisors of the Investor or its affiliates, provided that such
Persons to whom the Investor has given access to the Company Group confidential
information is bound by similar confidentiality obligations to those set forth herein.
Notwithstanding the foregoing, subject to applicable law, each Company director
affiliated with the Investor, and the Investor and any of the respective partners thereof
that are investment funds may include in their reports to the Investor, its partners or
stockholders information concerning the Company Group and such other information
reasonably required to enable such Investor, stockholders and partners to evaluate their
indirect investment in the Company, provided that such Persons to whom the director or
Investor have given access to the Company Group confidential information are bound by
similar confidentiality obligations to those set forth herein.

5.7        Legal
Proceedings. The Company and the Investor shall: (i) give the other
party prompt notice of the commencement of any legal proceeding by or before any
Governmental Entity with respect to this Agreement and the transactions contemplated
hereby; (ii) keep the other party informed as to the status of any such legal
proceeding; and (iii) promptly inform the other party of any communication with any
Governmental Entity about the this Agreement and the transactions contemplated hereby.
The Company and the Investor will consult and cooperate with one another, and will
consider in good faith the views of one another, in connection with any analysis,
appearance, presentation, memorandum, brief, argument, opinion or proposal made or
submitted in connection with any legal proceeding relating to this Agreement and the
transactions contemplated hereby pursuant to a joint defense agreement separately agreed
to, or request, filing, or notice to any Governmental Entity. In addition, except as may
be prohibited by any Governmental Entity or by any Legal Requirement, the Company and the
Investor will permit authorized representatives of the other party to be present at each
meeting or conference relating to any such legal proceeding or request, filing, or notice
to any Governmental Entity and to have access to and be consulted in connection with any
document, opinion or proposal made or submitted to any Governmental Entity in connection
with any such legal proceeding.

5.8        Public
Disclosure. Except for (i) the announcement by the Company of the
execution and delivery of this Agreement, the timing and content of which shall have been
mutually agreed by the Company and the Majority Investors, (ii) the announcement by Agate
of the execution and delivery of this Agreement, the timing and content of which shall
have been mutually agreed by the Company and Agate, and (iii) the Proxy Statement; no
party shall issue any statement or communication to any third party (other than their
respective agents, partners, affiliates and representatives that are bound by
confidentiality restrictions) regarding this Agreement, its existence and content, or the
transactions contemplated hereby, including, if applicable, the termination of this
Agreement and the reasons therefor, without the consent of the Company and the Majority
Investors, except as required to comply with applicable Legal Requirements and the rules
of any stock exchange, provided, however, the Company and the Majority
Investors and, to the extent applicable, any Investor making the disclosure shall use
commercially reasonable efforts to notify and consult with each other prior to any such
required public disclosure and use commercially reasonable efforts to accommodate the
views of the other parties and shall promptly provide the other parties with copies of
any written public disclosure made by such party in connection therewith.

- 18 -

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---

5.9        Notification
of Certain Matters. The Company shall give prompt notice to the Investor
of: (i) the occurrence or non-occurrence of any event, the occurrence or
non-occurrence of which is likely to cause any representation or warranty of the Company
contained in this Agreement to be untrue or inaccurate at or prior to the Closing in any
material respect, (ii) any failure of the Company to comply with or satisfy any
covenant, condition or agreement to be complied with or satisfied by it hereunder, and
(iii) any matter hereafter arising or discovered that, if existing or known by the
Company on the date hereof, would have been required to be set forth or described in the
Disclosure Schedule; provided, however, that the delivery of any notice
pursuant to this Section 5.9 shall not (a) limit or otherwise affect any
remedies available to the party receiving such notice, or (b) constitute an
acknowledgment or admission of a breach of this Agreement. No disclosure by the Company
pursuant to this Section 5.9 shall be deemed to amend or supplement the Disclosure
Schedule or prevent or cure any misrepresentations, breach of warranty or breach of
covenant.

5.10        Additional
Documents and Further Assurances. Each party hereto, at the reasonable
request of another party hereto, shall execute and deliver such other instruments and do
and perform such other acts and things as may be necessary or desirable for effecting
completely the consummation of the this Agreement and the transactions contemplated
hereby. [In the event that the Company intends to effect a registration statement for an
underwritten offering of its shares, and the managing underwriter requires that
absolutely all of the Holders (as such term is defined in the Registration Rights
Agreement, as amended) as a condition to the underwritten offering, comply with the
provisions of Section 9.1 of the Registration Rights Agreement, as amended, then,
although under the Registration Rights Agreement, Agate is exempt from the provisions of
such Section 9.1, Agate undertakes to comply with and be subject to such Section 9.1, as
it applies to a Holder. It is hereby clarified that should there be any discrepancy
between the Registration Rights Agreement and this Agreement with respect to Section 9.1,
the provisions hereof shall supersede.] [Note: this provision is included only in the
agreements with Agate]

5.11        [Observer. The
Company shall execute an agreement letter enabling Agate to appoint an observer to the
Board of Directors of the Company, subject to standard confidentiality undertakings.][Note:
this provision is included only in the agreements with Agate]

# ARTICLE VI

# CLOSING CONDITIONS

6.1        Conditions
to the Obligations of Each Party. The respective obligations of the
Company and the Investor to effect the Closing shall be subject to the satisfaction, at
or prior to the Closing Date, of the following conditions, any of which may be waived, in
writing, by mutual written instrument of the Investor and the Company:

| | (a)       No
Order. No Governmental Entity shall have enacted,           issued,
promulgated, enforced or entered any statute, rule, regulation,           executive
order, decree, injunction or other order (whether temporary,           preliminary or
permanent) which is in effect and which has the effect of making           this
Agreement, the Related Agreements or the transactions contemplated hereby           and
thereby illegal or otherwise prohibiting the consummation of the           transactions
contemplated hereby and thereby.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       Governmental
Entity Approvals. All Governmental Entity           approvals, if any,
required pursuant to Legal Requirements for the consummation           of the
transactions contemplated hereby shall have been obtained.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 19 -

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| | (c)       Shareholders Approval.
Shareholders of the Company           constituting the Required Company Shareholder Vote
shall have approved the           Shareholders Resolution.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6.2        Additional
Conditions to the Obligations of the Investor. The obligations of the
Investor to effect the Closing shall be subject to the satisfaction at or prior to the
Closing Date of each of the following conditions, any of which may be waived, in writing,
by the Investor:

| | (a)       Representations,
Warranties and Covenants. (i) The           representations and
warranties of the Company in this Agreement shall have been           true and correct in
all material respects on and as of the Closing Date with the           same effect as if
made at and as of the Closing Date (except to the extent such           representations
specifically relate to an earlier date, in which case such           representations
shall be true and correct as of such earlier date), and           (ii) the Company
shall have performed and complied in all material respects           with all covenants
and obligations under this Agreement required to be performed           and complied with
by the Company at or prior to of the Closing Date.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       Receipt
of Closing Deliveries. Each of the agreements,           instruments and
other documents to be delivered by the Company pursuant to           Section 2.4 hereof
shall be in a form and substance reasonably satisfactory to           the Investors, and
shall have been received by them.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       No
Injunctions or Restraints. No permanent restraining           orders,
temporary restraining order (that was not removed prior to Closing) or
          permanent injunction or other order issued by any Governmental Entity which has
          or could have the effect of limiting or restricting the Investors
          ownership or voting of the Purchased Securities shall be in effect, nor shall
          there be pending or threatened any suit, action or proceeding seeking the
          foregoing.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       No
Material Adverse Effect. There shall not have occurred a           Company
Material Adverse Effect, whether as a result of the Companys           failure,
individually or in the aggregate, to perform and comply with all           covenants and
obligations under the Agreement required to be performed and           complied with by
the Company at or prior to the Closing Date, as a result of or           in connection
with any failure(s) of any representation and warranty of the           Company hereunder
(without any regard to any exception or qualification as to           materiality or
knowledge) to be true and correct as of the date hereof and as of           Closing, or
otherwise.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6.3        Additional
Conditions to Obligations of the Company. The obligations of the Company
to effect the Closing shall be subject to the satisfaction at or prior to the Closing
Date of each of the following conditions, any of which may be waived, in writing,
exclusively by the Company:

| | (a)       Representations,
Warranties and Covenants. (i) The           representations and
warranties of the Investor in this Agreement shall have been           true and correct
in all material respects on and as of the Closing Date with the           same effect as
if made at and as of the Closing Date (except to the extent such
          representations specifically relate to an earlier date, in which case such
          representations shall be true and correct as of such earlier date), and
          (ii) the Investor shall have performed and complied in all material
          respects with all covenants and obligations under this Agreement required to be
          performed and complied with by such parties at or prior to of the Closing Date.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       Receipt
of Closing Deliveries. Each of the agreements,           instruments and
other documents to be delivered by the Investor and undertakings           to be complied
with pursuant to Section 2.3 hereof shall be either delivered to           the Company or
otherwise complied with.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 20 -

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# ARTICLE VII

# TERMINATION

7.1        Termination.
Subject to Sections 7.2 and 7.3 hereof, this Agreement may be terminated at any time
prior tothe Closing:

| | (a)       by
written agreement of the Company and the Investor;
| | ---------------------------------------------------------------

| | (b)       by
written notice of the Majority Investors or the Company referring to the
          relevant clause of this subsection if:
| | --------------------------------------------------------------------------------------------------------------------------------------

| | (i)       the
Closing Date shall not have occurred by July 31, 2009; provided, however,
that the right to terminate this Agreement under this           Section 7.1(b)(i)
shall not be available to any party whose action or           failure to act has been a
principal cause of or resulted in the failure of the           consummation of the
Closing to occur on or before such date and such action or           failure to act
constitutes a breach of this Agreement;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       the
approval of the Shareholders Resolution by the Required Company
          Shareholder Vote shall not have been obtained at the Company General Meeting
          (including any adjournment or postponement thereof), provided, however,
that the right to terminate this Agreement under this           Section 7.1(b)(ii)
shall not be available to the Company where the failure           to obtain the Required
Company Shareholder Vote shall have been caused by or           related to the Companys
breach of this Agreement;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii)       there
shall be a final non-appealable order of any Governmental Entity in effect
          preventing consummation of the transactions contemplated hereby; provided,
however, that the right to terminate this Agreement           under this Section 7.1(b)(iii)
shall not be available to any party whose           action or failure to act has been a
principal cause of or resulted in such order           preventing the consummation of the
transactions contemplated hereby and such           action or failure to act constitutes
a breach of this Agreement; or
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv)       there
shall be any statute, rule, regulation or order enacted, promulgated or           issued
or deemed applicable to the Closing by any Governmental Entity that would           make
consummation of the Closing illegal;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       by
written notice of the Majority Investors referring to the relevant clause of
          this subsection if there shall be statute, rule, regulation or order enacted,
          promulgated or issued or applicable to the transactions contemplated hereby by
          any Governmental Entity, which would prohibit the Investors ownership
          of the Purchased Securities;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       by
written notice of the Investor and referring to this subsection if the           Investor
is not in material breach of its obligations under this Agreement and           there has
been a breach of any representation, warranty, covenant or agreement           of the
Company contained in this Agreement such that the conditions set forth in
          Section 6.2(d) hereof would not be satisfied and such breach has not been
          cured within ten calendar days after written notice thereof to the Company; provided,
however, that no cure period shall be required for a           breach which by its
nature cannot be cured.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)       by
written notice of the Company referring to this subsection if the Company is
          not in material breach of its obligations under this Agreement and there has
          been a breach of any representation, warranty, covenant or agreement of the
          Investor contained in this Agreement such that the conditions set forth in
          Section 6.3(a) hereof would not be satisfied and such breach has not been
          cured within ten calendar days after written notice thereof to the Majority
          Investors; provided, however, that no cure period shall be
          required for a breach which by its nature cannot be cured.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 21 -

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---

7.2        Effect
of Termination. In the event of termination of this Agreement as provided
in Section 7.1 hereof, this Agreement shall forthwith become void and there shall be
no liability or obligation on the part of the Investor or the Company, or their
respective employees, agents or shareholders, if applicable, except that the provisions
of ARTICLE VIII and this Section 7.2 shall remain in full force and effect and
survive any termination of this Agreement pursuant to the terms of this ARTICLE VII, and
except to the extent that such termination results from a material breach by the other
party of any representation, warranty or covenant set forth in this Agreement.

7.3        Fees
and Expenses. Whether or not the Closing occurs,
all fees and expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring such expenses. Notwithstanding
the foregoing, the Company will pay at the Closing to [Herzog, Fox & Neeman, counsel
to Ofer Hi-Tech Investments Ltd. and LM Partners L.P. all legal fees incurred in
connection with the investment of Ofer Hi-Tech Investments Ltd. and LM Partners L.P][included in LMs and Ofers agreements] [to M. Seligman, counsel to Agate
Medical Investments L.P. all legal fees incurred in connection with Agates
Investment] [included in Agates agreements], in an amount not to exceed the
sum of $10,000, plus Value Added Tax.

# ARTICLE VIII

# GENERAL PROVISIONS

8.1        Entire
Agreement. This Agreement, the exhibits and schedules hereto, the Related
Agreements, the Disclosure Schedule and the documents and instruments and other
agreements among the parties hereto referenced herein constitute the entire
agreement among the parties with respect to the subject matter hereof and supersede all
prior agreements and understandings both written and oral, among the parties with respect
to the subject matter hereof.

8.2        Assignment.
Neither this Agreement nor any of the rights, interests or obligations under this
Agreement may be assigned or delegated, in whole or in part, by operation of law or
otherwise by any party hereto without the prior written consent of the other party
hereto, and any such assignment without such prior written consent shall be null and
void, except that this Agreement or any of the rights, interests or obligations under
this Agreement may be assigned with the prior written consent of the Majority Investors,
but without the prior consent of the Company, by the Investor to any of its Permitted
Transferees. Subject to the foregoing, this Agreement shall be binding upon, inure to the
benefit of, and be enforceable by, the parties hereto and their respective successors and
assigns.

8.3        Amendment.
Except as otherwise stated, this Agreement may not be amended other than by a written
instrument signed by the Investor and the Company. Any amendment effected in accordance
with this Section shall be binding upon the Investor and the Company, and by acceptance
of any benefits under this Agreement, the Investor agrees to be bound by the provisions
hereunder.

- 22 -

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---

8.4        Extension;
Waiver. At any time prior to the Closing, the Investor or the Company, as
the case may be, may, to the extent legally allowed, (i) extend the time for the
performance of any of the obligations of the other party hereto, (ii) waive any
inaccuracies in the representations and warranties made to such party contained herein or
in any document delivered pursuant hereto, and (iii) waive compliance with any of
the covenants, agreements or conditions for the benefit of such party contained herein.
Any agreement on the part of a party hereto to any such extension or waiver shall be
valid only if set forth in an instrument in writing signed on behalf of such party and in
case of the Investor shall be binding upon each Investor.

8.5        Governing
Law; Jurisdiction. This Agreement shall be governed by and construed in
accordance with the laws of the State of Israel, regardless of the laws that might
otherwise govern under applicable principles of conflicts of laws thereof. Each of the
parties hereto irrevocably consents to the exclusive jurisdiction and venue of any
competent court of the district of Tel-Aviv-Jaffa, in connection with any matter based
upon or arising out of this Agreement or the matters contemplated herein, agrees that
process may be served upon them in any manner authorized by the laws of the State of
Israel for such persons and waives and covenants not to assert or plead any objection
which they might otherwise have to such jurisdiction and such process.

8.6        Notices.
All notices and other communications hereunder shall be in writing and shall be deemed
given if delivered personally or by commercial messenger or courier service, or mailed by
registered or certified mail (return receipt requested) or sent via facsimile (with
electronic confirmation of complete transmission) to the parties at the following
addresses (or at such other address for a party as shall be specified by like notice):

| | (a) | if
to the Investor, to:
| | --- | -----------------------

| | the
address set forth opposite such Investor's name on Schedule 1.
| | ------------------------------------------------------------------

| | [with a mandatory copy to] [included in LM's and Ofer's agreements]:
| | --------------------------------------------------------------------

| | Herzog, Fox & Neeman
| | --------------------

| | Asia
House, 4 Weizmann Street
| | -----------------------------

| | Tel-Aviv
64239 Israel
| | ---------------------

| | Attention:             Alon Sahar, Advocate
| | -------------------------------------------

| | Telephone
No.:    (972)-(3)-692-2861
| | ------------------------------------

| | Facsimile
No.:      (972)-(3)-696-6464
| | --------------------------------------

| | [with a mandatory copy to [included in Agate's agreements]:
| | -----------------------------------------------------------

| | M. Seligman & Co
| | ----------------

| | Levinstein
Tower,
| | -----------------

| | 23
Menachem Begin Rd., Tel Aviv 66184, Israel
| | ---------------------------------------------

| | Attention:             Sharon Gazit, Advocate
| | ---------------------------------------------

| | Telephone
No.:    (972)-(3)-7101661
| | -----------------------------------

| | Facsimile No.:      (972)-(3)-7101699
| | -------------------------------------

- 23 -

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| | (b) | if
to the Company, to:
| | --- | ----------------------

| | Lumenis
Ltd.
| | ------------

| | POB
240
| | -------

| | Yokneam,
Industrial Park, Israel
| | --------------------------------

| | Attention:             Chief Executive Officer
| | ----------------------------------------------

| | Telephone No.:    (972)-(4)-9599356
| | -----------------------------------

| | Facsimile No.:      (972)-(4)- 9599360
| | --------------------------------------

| | with a mandatory copy to:
| | -------------------------

| | Meitar Liquornik Geva & Leshem Brandwein
| | ----------------------------------------

| | 16
Abba Hillel Road Ramat Gan 52506, Israel
| | -------------------------------------------

| | Attention:             Dan Shamgar, Advocate
| | --------------------------------------------

| | Telephone No.:    (972)-(3)-610-3100
| | ------------------------------------

| | Facsimile No.:      (972)-(3)-6103-111
| | --------------------------------------

8.7        Interpretation.
The words include, includesand including when used
herein shall be deemed in each case to be followed by the words without limitation.
The words herein,hereof, hereto and hereunder and
words of similar import, when used in this Agreement, shall refer to this Agreement as a
whole and not to any particular provision of this Agreement. The table of contents and
headings contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement. The phrases provided to,furnished
to, made available and phrases of similar import when used herein,
unless the context otherwise requires, shall mean that a true, correct and complete paper
or electronic copy of the information or material referred to was provided to the
Investors or its legal counsels.

8.8        Severability.
In the event that any provision of this Agreement or the application thereof, becomes or
is declared by a court of competent jurisdiction to be illegal, void or unenforceable,
the remainder of this Agreement will continue in full force and effect and the
application of such provision to other persons or circumstances will be interpreted so as
reasonably to effect the intent of the parties hereto. The parties further agree to
replace such void or unenforceable provision of this Agreement with a valid and
enforceable provision that will achieve, to the extent possible, the economic, business
and other purposes of such void or unenforceable provision.

8.9        Other
Remedies. Any and all remedies herein expressly conferred upon a party
will be deemed cumulative with and not exclusive of any other remedy conferred hereby, or
by law or equity upon such party, and the exercise by a party of any one remedy will not
preclude the exercise of any other remedy.

8.10        Rules
of Construction. The parties hereto agree that they have been represented
by counsel during the negotiation and execution of this Agreement and, therefore, waive
the application of any law, regulation, holding or rule of construction providing that
ambiguities in an agreement or other document will be construed against the party
drafting such agreement or document.

8.11        Counterparts.
This Agreement may be executed in one or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when one or more
counterparts have been signed by each of the parties and delivered to the other party, it
being understood that all parties need not sign the same counterpart and that signatures
may be provided by facsimile transmission.

 Signature page
follows 

- 24 -

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# INDEX OF SCHEDULES

|Schedule 1 |  | Investor Name, Address and Purchased Securities
|---------- |  | -----------------------------------------------

# INDEX OF EXHIBITS

|Exhibit A |  | Form of Warrant
|--------- |  | ---------------

|Exhibit B |  | Amendment to Registration Rights Agreement
|--------- |  | ------------------------------------------

|Exhibit C |  | Resolution of the Companys Board of Directors
|--------- |  | ----------------------------------------------

|Exhibit D |  | Form of Legal Opinion
|--------- |  | ---------------------

|Exhibit E |  | Disclosure Schedule
|--------- |  | -------------------

|Exhibit F |  | Shareholders Resolution
|--------- |  | ------------------------



---

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# SCHEDULE 1

# TO THE PURCHASE
AGREEMENT WITH OFER HI -TECH INVESTMENTS LTD.

# INVESTOR NAME, ADDRESS
AND PURCHASED SECURITIES

|Investor's Name                 | Address | Warrants | Purchased Shares | Purchase Price
|------------------------------- | ------- | -------- | ---------------- | --------------
|
|
|
|
|OFER HI -TECH INVESTMENTS LTD., |         |          |                  |               
|incorporated under              |         |          |                  |               
|the laws of the State of        |         |          | 9 Andre Saharov, |               
|Israel                          |         |          | Haifa, Israel    |               



---

---

# SCHEDULE 1

# TO THE PURCHASE
AGREEMENT WITH LM PARTNERS L.P.

# INVESTOR NAME, ADDRESS
AND PURCHASED SECURITIES

|Investors Name            | Address | Warrants | Purchased Shares  | Purchase Price
|-------------------------- | ------- | -------- | ----------------- | --------------
|
|
|
|
|LM PARTNERS L.P.,          |         |          | 16 Abba Even      |               
|incorporated under the     |         |          | Avenue, Herzliya, |               
|laws of the Cayman Islands |         |          | Israel            |               



---

---

# SCHEDULE 1

# TO THE PURCHASE
AGREEMENT WITH AGATE MEDICAL INVESTMENTS L.P.

# INVESTOR NAME, ADDRESS
AND PURCHASED SECURITIES

|Investor's Name                 | Address | Warrants | Purchased Shares      | Purchase Price
|------------------------------- | ------- | -------- | --------------------- | --------------
|
|
|
|
|AGATE MEDICAL INVESTMENTS L.P., |         |          | 37 Menachem Begin Rd, |               
|incorporated under              |         |          | Tel-Aviv, Israel      |               
|the laws of Israel              |         |          | 67134                 |               



---

---

# SCHEDULE 1

# TO THE PURCHASE
AGREEMENT WITH AGATE MEDICAL INVESTMENTS (CAYMAN) L.P.

# INVESTOR NAME, ADDRESS
AND PURCHASED SECURITIES

|Investor's Name           | Address | Warrants | Purchased Shares | Purchase Price
|------------------------- | ------- | -------- | ---------------- | --------------
|
|
|
|
|AGATE MEDICAL INVESTMENTS |         |          | 37 Menachem      |               
|(CAYMAN) L.P.,            |         |          | Begin Rd,        |               
|incorporated under the    |         |          | Tel-Aviv, Israel |               
|laws of Cayman            |         |          | 67134            |               



---

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