Document:

Exhibit
      10.29

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (this “Agreement”)
      is
      made and entered into as of March 22, 2006, among XTL Biopharmaceuticals Ltd.,
      a
      public company limited by shares organized under the laws of the State of Israel
      (the “Company”),
      and
      the purchasers’ signatory hereto (each such purchaser is a “Purchaser”
and
      all
      such purchasers are, collectively, the “Purchasers”).

    

    This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      the
      date hereof among the Company and the Purchasers (the “Purchase
      Agreement”).

    

    The
      Company and the Purchasers hereby agree as follows:

    

    1. Definitions

    

    Capitalized
      terms used and not otherwise defined herein that are defined in the Purchase
      Agreement shall have the meanings given such terms in the Purchase
      Agreement.
      As used
      in this Agreement, the following terms shall have the following
      meanings:

    

    “Commission”
means
      the United States Securities and Exchange Commission.

    

    “Effectiveness
      Date”
means,
      with respect to the Registration Statement registering for resale the
      Registrable Securities, the 90th
      calendar
      day following the Closing Date (105th
      calendar
      day in the event of a full review by the Commission); provided,
      however,
      in the
      event that the Company is notified by the Commission that the Registration
      Statement will not be reviewed or is no longer subject to further review and
      comments, the Effectiveness Date as to the Registration Statement shall be
      the
      fifth Trading Day following the date on which the Company is so notified if
      such
      date precedes the dates required above.

    

    “Effectiveness
      Period”
shall
      have the meaning set forth in Section 2(a).

    

    “Filing
      Date”
means,
      with respect to the Registration Statement registering for resale the
      Registrable Securities, the 30th
      day
      following the Closing Date.

    

    “Holder”
or
      “Holders”
means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities.

    

    “Indemnified
      Party”
shall
      have the meaning set forth in Section 5(c).

    

    “Indemnifying
      Party”
shall
      have the meaning set forth in Section 5(c).

     

    
      
        
        

      

      
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    “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

    

    “Prospectus”
means
      the prospectus included in the Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by the Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus.

    

    “Registrable
      Securities”
means
      all of the Shares and Warrant Shares, together with any Ordinary Shares issued
      or issuable as a result of any stock split, dividend or other distribution,
      recapitalization exchange or similar event with respect to the
      foregoing.

     

    “Registration
      Statement”
means
      the registration statements required to be filed hereunder, including (in each
      case) the Prospectus, amendments and supplements to the Registration Statement
      or Prospectus, including pre- and post-effective amendments, all exhibits
      thereto, and all material incorporated by reference or deemed to be incorporated
      by reference in the registration statement.

    

    “Rule
      415”
means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule.

    

    “Rule
      424”
means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule.

    

    “Shares”
means
      the Ordinary Shares purchased by the Purchasers under the Purchase
      Agreement.

     

    “Warrants”
means
      the Share purchase warrants issued to the Purchasers pursuant to the Purchase
      Agreement.

    

    2. Shelf
      Registration

    

    (a) The
      Company shall prepare and, as soon as practicable, but in no event later than
      the Filing Date, file with the Commission a “Shelf” Registration Statement
      covering the resale of all of the Registrable Securities for an offering to
      be
      made on a continuous basis pursuant to Rule 415. The Registration Statement
      shall be on Form F-1 and shall contain (unless otherwise directed by the Holders
      and except to the extent the Company determines that modifications thereto
      are
      required under applicable law) substantially the “Plan of Distribution” attached
      hereto as Exhibit
      A.
      Subject
      to the terms of this Agreement, the Company shall use its best efforts to cause
      the Registration Statement to be declared effective under the Securities Act
      as
      promptly as possible after the filing thereof, but in any event prior to the
      Effectiveness Date, and shall use its best efforts to keep the Registration
      Statement continuously effective under the Securities Act until the date which
      is two years after the date that the Registration Statement is declared
      effective by the Commission or such earlier date when all Registrable Securities
      covered by the Registration Statement have been sold or may be sold without
      volume restrictions pursuant to Rule 144(k) as determined by the counsel to
      the
      Company pursuant to a written opinion letter to such effect, addressed and
      acceptable to the Company’s transfer agent and the affected Holders (the
“Effectiveness
      Period”).
      The
      Company shall immediately notify the Holders via facsimile or email of the
      effectiveness of the Registration Statement on the same day that the Company
      receives notification of the effectiveness from the Commission.

     

    
      
        
        

      

      
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    (b) If:
      (i)
      the Registration Statement is not filed on or prior to its Filing Date (if
      the
      Company files the Registration Statement without affording the Holders the
      opportunity to review and comment on the same as required by Section 3(b),
      the
      Company shall not be deemed to have satisfied clause (i)), or (ii) the Company
      fails to file with the Commission a request for acceleration in accordance
      with
      Rule 461 promulgated under the Securities Act, within five Trading Days of
      the
      date that the Company is notified (orally or in writing, whichever is earlier)
      by the Commission that the Registration Statement will not be “reviewed,” or not
      subject to further review, or (iii) prior to the Effectiveness Date, the Company
      fails to file a pre-effective amendment and otherwise respond in writing to
      comments made by the Commission in respect of the Registration Statement within
      ten Trading Days after the receipt of comments by or notice from the Commission
      that such amendment is required in order for the Registration Statement to
      be
      declared effective, or (iv) the Registration Statement filed or required to
      be
      filed hereunder is not declared effective by the Commission by the Effectiveness
      Date, or (v) after the Effectiveness Date, the Registration Statement ceases
      for
      any reason to remain continuously effective as to all Registrable Securities
      for
      which it is required to be effective, or the Holders are not permitted to
      utilize the Prospectus therein to resell such Registrable Securities for ten
      consecutive Trading Days or in any individual case an aggregate of fifteen
      Trading Days during any twelve month period (which need not be consecutive
      Trading Days) (any such failure or breach being referred to as an “Event”,
      and
      for purposes of clause (i) or (iv) the date on which such Event occurs, or
      for
      purposes of clause (ii) the date on which such five Trading Day period is
      exceeded, or for purposes of clause (iii) the date which such ten Trading Day
      period is exceeded, or for purposes of clause (v) the date on which such ten
      or
      fifteen Trading Day period, as applicable, is exceeded being referred to as
      “Event
      Date”),
      then,
      on each such Event Date and every monthly anniversary thereof until the
      applicable Event is cured, the Company shall pay to each Holder an amount in
      cash, as liquidated damages and not as a penalty, equal to 2.0% per month of
      the
      Subscription Amount paid by such Holder pursuant to the Purchase Agreement
      for
      Registrable Securities then held by such Holder and covered (or to be covered)
      by the Registration Statement. If the Company fails to pay any liquidated
      damages pursuant to this Section in full within seven days after the date
      payable, the Company will pay interest thereon at a rate of 15% per annum (or
      such lesser maximum amount that is permitted to be paid by applicable law)
      to
      the Holder, accruing daily from the date such liquidated damages are due until
      such amounts, plus all such interest thereon, are paid in full. The liquidated
      damages pursuant to the terms hereof shall apply on a pro-rata basis for any
      portion of a month prior to the cure of an Event. 

     

    
      
        
        

      

      
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    (c) The
      Holders holding at least a majority of the Registrable Securities shall have
      the
      right to select one legal counsel to review, comment and oversee any
      registration pursuant to this Section 2 (“Legal Counsel”), which shall be
      Dechert LLP or such other counsel as thereafter designated by the holders of
      at
      least a majority of the Registrable Securities.

    

    3. Registration
      Procedures

    

    In
      connection with the Company’s registration obligations hereunder, the Company
      shall:

    

    (a) Permit
      Legal Counsel to review and comment upon a Registration Statement or any related
      Prospectus or any amendment or supplement thereto (including any document that
      would be incorporated or deemed to be incorporated therein by reference) at
      least five Trading Days prior to its filing with the Commission and Company
      shall not file any Registration Statement or any related Prospectus or any
      amendment or supplement thereto (including any document that would be
      incorporated or deemed to be incorporated therein by reference) in a form to
      which Legal Counsel reasonably objects in writing; provided that the liquidated
      damages set forth in Section 2(b) shall not accrue as a result of such
      objection. The Company shall promptly furnish to Legal Counsel, without charge,
      (i) copies of any correspondence between the Commission or the staff of the
      Commission, on one hand, and the Company or its representatives, on the other,
      relating to any Registration Statement and (ii) upon effectiveness of any
      Registration Statement, one copy of Prospectus or Prospectuses (including each
      form of prospectus) and each amendment or supplement thereto. The Company shall
      reasonably cooperate with Legal Counsel in performing the Company’s obligations
      pursuant to this Section 3.

    

    (b) Not
      less
      than three Trading Days prior to the filing of the Registration Statement or
      any
      related Prospectus or any amendment or supplement thereto (including any
      document that would be incorporated or deemed to be incorporated therein by
      reference), the Company shall, (i) furnish to each Holder copies of all such
      documents proposed to be filed, which documents (other than those incorporated
      or deemed to be incorporated by reference) will be subject to the review of
      such
      Holders, and (ii) cause its officers and directors, counsel and independent
      certified public accountants to respond to such inquiries as shall be necessary
      to conduct a reasonable investigation within the meaning of the Securities
      Act.

     

    
      
        
        

      

      
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    (c) (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to the Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep the Registration Statement continuously
      effective as to the applicable Registrable Securities for the Effectiveness
      Period; (ii) cause the related Prospectus to be amended or supplemented by
      any
      required Prospectus supplement (subject to the terms of this Agreement), and
      as
      so supplemented or amended to be filed pursuant to Rule 424; (iii) respond
      as
      promptly as reasonably possible, and in any event within ten Trading Days,
      to
      any comments received from the Commission with respect to the Registration
      Statement or any amendment thereto and as promptly as reasonably possible
      provide the Holders true and complete copies of all correspondence from and
      to
      the Commission relating to the Registration Statement; and (iv) comply in all
      material respects with the provisions of the Securities Act and the Exchange
      Act
      with respect to the disposition of all Registrable Securities covered by the
      Registration Statement during the applicable period in accordance (subject
      to
      the terms of this Agreement) with the intended methods of disposition by the
      Holders thereof set forth in the Registration Statement as so amended or in
      such
      Prospectus as so supplemented.

    

    (d) Notify
      the Holders of Registrable Securities to be sold and Legal Counsel (which
      notice, pursuant to clauses (ii) through (vi) hereof, shall be accompanied
      by an
      instruction to suspend the use of the Prospectus until the requisite changes
      have been made) as promptly as reasonably possible and (if requested by any
      such
      Person) confirm such notice in writing no later than two Trading Days following
      the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective
      amendment to the Registration Statement is proposed to be filed; (B) when the
      Commission notifies the Company whether there will be a “review” of the
      Registration Statement and whenever the Commission comments in writing on the
      Registration Statement (the Company shall provide true and complete copies
      thereof and all written responses thereto to each of the Holders); and (C)
      with
      respect to the Registration Statement or any post-effective amendment, when
      the
      same has become effective; (ii) of any request by the Commission or any other
      Federal or state governmental authority for amendments or supplements to the
      Registration Statement or Prospectus or for additional information; (iii) of
      the
      issuance by the Commission of any stop order suspending the effectiveness of
      the
      Registration Statement covering any or all of the Registrable Securities or
      the
      initiation of any Proceedings for that purpose; (iv) of the receipt by the
      Company of any notification with respect to the suspension of the qualification
      or exemption from qualification of any of the Registrable Securities for sale
      in
      any jurisdiction, or the initiation or threatening of any Proceeding for such
      purpose; (v) of the occurrence of any event or passage of time that makes the
      financial statements included in the Registration Statement ineligible for
      inclusion therein or any statement made in the Registration Statement or
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference untrue in any material respect or that requires any revisions to
      the
      Registration Statement, Prospectus or other documents so that, in the case
      of
      the Registration Statement or the Prospectus, as the case may be, it will not
      contain any untrue statement of a material fact or omit to state any material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not misleading; and
      (vi) the occurrence or existence of any pending corporate development with
      respect to the Company that the Company believes may be material and that,
      in
      the determination of the Company, makes it not in the best interest of the
      Company to allow continued availability or the Registration Statement or
      Prospectus; provided that the Company shall not disclose the nature of such
      information to the Holder.

     

    
      
        
        

      

      
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    (e) Promptly
      deliver to each Holder, without charge, as many copies of the Prospectus or
      Prospectuses (including each form of prospectus) and each amendment or
      supplement thereto as such Persons may reasonably request. Subject to the terms
      of this Agreement, the Company hereby consents to the use of such Prospectus
      and
      each amendment or supplement thereto by each of the selling Holders in
      connection with the offering and sale of the Registrable Securities covered
      by
      such Prospectus and any amendment or supplement thereto.

    

    (f) Use
      commercially reasonable efforts to register or qualify the resale of such
      Registrable Securities as required under applicable securities or Blue Sky
      laws
      of each State within the United States as any Holder requests in writing, to
      keep each the Registration or qualification (or exemption therefrom) effective
      during the Effectiveness Period; provided, that the Company shall not be
      required to qualify generally to do business in any jurisdiction where it is
      not
      then so qualified or subject the Company to any material tax in any such
      jurisdiction where it is not then so subject.

    

    (g) Cooperate
      with the Holders to facilitate the timely preparation and delivery of ADRs
      representing Registrable Securities to be delivered to a transferee pursuant
      to
      the Registration Statement, which shall be free, to the extent permitted by
      the
      Purchase Agreement, of all restrictive legends, and to enable such ADRs to
      be in
      such denominations and registered in such names as any such Holders may
      request.

    

    (h) Upon
      the
      occurrence of any event contemplated by this Section 3, as promptly as
      reasonably possible under the circumstances prepare a supplement or amendment,
      including a post-effective amendment, to the Registration Statement or a
      supplement to the related Prospectus or any document incorporated or deemed
      to
      be incorporated therein by reference, and file any other required document
      so
      that, as thereafter delivered, neither the Registration Statement nor such
      Prospectus will contain an untrue statement of a material fact or omit to state
      a material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which they were made,
      not misleading.
      If the
      Company notifies the Holders in accordance with clauses (ii) through (vi) of
      Section 3(d) above to suspend the use of any Prospectus until the requisite
      changes to such Prospectus have been made, or the Company otherwise notifies
      the
      Holders of its election to suspend the availability of the Registration
      Statement and Prospectus pursuant to clause (vi) of Section 3(d), then the
      Holders shall suspend use of such Prospectus. The Company will use its best
      efforts to ensure that the use of the Prospectus may be resumed as promptly
      as
      is practicable, except that in the case of suspension of the availability of
      the
      Registration Statement and Prospectus pursuant to clause (vi) of Section 3(d),
      the Company shall not be required to take such action until such time as it
      shall determine that the continued availability of the Registration Statement
      and Prospectus is no longer not in the best interests of the Company. The
      Company shall be entitled to exercise its right under this Section 3(h) to
      suspend the availability of the Registration Statement and Prospectus, subject
      to the payment of liquidated damages pursuant to Section 2(b), for a period
      not
      to exceed 60 consecutive days or for multiple periods not to exceed 90 days
      in
      any 12 month period.

     

    
      
        
        

      

      
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    (i) Comply
      with all applicable rules and regulations of the Commission.

    

    (j) Use
      its
      best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
      of
      (i) any order suspending the effectiveness of the Registration Statement, or
      (ii) any suspension of the qualification (or exemption from qualification)
      of
      any of the Registrable Securities for sale in any jurisdiction, at the earliest
      practicable moment.

    

    (k) The
      Company may require, at any time prior to the third Trading Day prior to the
      Filing Date, each Holder to furnish to the Company a statement as to the number
      of Ordinary Shares beneficially owned by such Holder and, if requested by the
      Commission, the controlling person thereof, within three Trading Days of the
      Company’s request. During any periods that the Company is unable to meet its
      obligations hereunder with respect to the registration of the Registrable
      Securities solely because any Holder fails to furnish such information within
      three Trading Days of the Company’s request, any liquidated damages that are
      accruing at such time shall be tolled, until such information is delivered
      to
      the Company.

    

    4. Registration
      Expenses.
      All
      fees and expenses incident to the performance of or compliance with this
      Agreement by the Company shall be borne by the Company whether or not any
      Registrable Securities are sold pursuant to the Registration Statement. The
      fees
      and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses (A) with respect to filings required to be made with the
      Trading Market on which the ADRs are then listed for trading, and (B) in
      compliance with applicable state securities or Blue Sky laws reasonably agreed
      to by the Company in writing (including, without limitation, fees and
      disbursements of counsel for the Company in connection with Blue Sky
      qualifications or exemptions of the Registrable Securities and determination
      of
      the eligibility of the Registrable Securities for investment under the laws
      of
      such jurisdictions as requested by the Holders)), (ii) printing expenses
      (including, without limitation, expenses of printing certificates for
      Registrable Securities and of printing prospectuses requested by the Holders),
      (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements
      of
      counsel for the Company, and (v) reasonable fees and disbursements of Legal
      Counsel, and (vi) fees and expenses of all other Persons retained by the Company
      in connection with the consummation of the transactions contemplated by this
      Agreement. In addition, the Company shall be responsible for all of its internal
      expenses incurred in connection with the consummation of the transactions
      contemplated by this Agreement (including, without limitation, all salaries
      and
      expenses of its officers and employees performing legal or accounting duties),
      the expense of any annual audit and the fees and expenses incurred in connection
      with the listing of the Registrable Securities on any securities exchange as
      required hereunder. In no event shall the Company be responsible for any broker
      or similar commissions or, except to the extent provided for in the Transaction
      Documents, any legal fees or other costs of the Holders.

     

    
      
        
        

      

      
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    5. Indemnification

    

    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, members, partners, agents,
      brokers (including brokers who offer and sell Registrable Securities as
      principal as a result of a pledge or any failure to perform under a margin
      call
      of ADRs), investment advisors and employees of each of them, each Person who
      controls any such Holder (within the meaning of Section 15 of the Securities
      Act
      or Section 20 of the Exchange Act) and the officers, directors, members,
      partners, agents and employees of each such controlling Person, to the fullest
      extent permitted by applicable law, from and against any and all losses, claims,
      damages, liabilities, judgments, fines, penalties, charges, costs (including,
      without limitation, costs of preparation and reasonable attorneys’ fees) and
      expenses (collectively, “Losses”),
      as
      incurred, arising out of or relating to (i) any breach of applicable securities
      laws or untrue or alleged untrue statement of a material fact contained in
      the
      Registration Statement, any Prospectus or any form of prospectus or in any
      amendment or supplement thereto or in any preliminary prospectus, or arising
      out
      of or relating to any omission or alleged omission of a material fact required
      to be stated therein or necessary to make the statements therein (in the case
      of
      any Prospectus or form of prospectus or supplement thereto, in light of the
      circumstances under which they were made) not misleading, except to the extent,
      but only to the extent, that (1) such untrue statements or omissions or alleged
      untrue statements or omissions are based solely upon information regarding
      such
      Holder furnished in writing to the Company by such Holder expressly for use
      therein, or to the extent that such information relates to such Holder or such
      Holder’s proposed method of distribution of Registrable Securities and was
      reviewed and expressly approved in writing by such Holder expressly for use
      in
      the Registration Statement, such Prospectus or such form of Prospectus or in
      any
      amendment or supplement thereto or (2) in the case of an occurrence of an event
      of the type specified in Section 3(d)(ii)-(vi), the use by such Holder of an
      outdated or defective Prospectus after the Company has notified such Holder
      in
      writing that the Prospectus is outdated or defective and prior to the receipt
      by
      such Holder of the Advice contemplated in Section 6(e); (ii) any
      violation or alleged violation by the Company of the Securities Act, the
      Exchange Act, any other law, including, without limitation, any state securities
      laws, or any rule or regulation thereunder relating to the offer or sale of
      the
      Registrable Securities pursuant to a Registration Statement; or (iii) any
      material violation of this Agreement by the Company, its agents or
      representatives.
      The
      Company shall notify the Holders promptly of the institution, threat or
      assertion of any Proceeding arising from or in connection with the transactions
      contemplated by this Agreement of which the Company is aware.

     

    
      
        
        

      

      
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    (b) Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents or employees of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses (as determined by a court of competent jurisdiction
      in a final judgment not subject to appeal or review) arising out of or based
      upon any untrue statement of a material fact contained in any Registration
      Statement, any Prospectus, or any form of prospectus, or in any amendment or
      supplement thereto, arising solely out of or based solely upon: (i) such
      Holder’s failure to comply with the prospectus delivery requirements of the
      Securities Act or (ii) any omission of a material fact required to be stated
      therein or necessary to make the statements therein not misleading to the
      extent, but only to the extent, such untrue statement or omission is contained
      in any information so furnished in writing by such Holder to the Company
      specifically for inclusion in the Registration Statement or such Prospectus
      or
      to the extent that (1) such untrue statements or omissions are based upon
      information regarding such Holder furnished in writing to the Company by such
      Holder expressly for use therein, or to the extent such information relates
      to
      such Holder or such Holder’s proposed method of distribution of Registrable
      Securities and was reviewed and expressly approved in writing by such Holder
      expressly for use in the Registration Statement, such Prospectus or such form
      of
      Prospectus or in any amendment or supplement thereto or (2) in the case of
      an
      occurrence of an event of the type specified in Section 3(d)(ii)-(vi), the
      use
      by such Holder of an outdated or defective Prospectus after the Company has
      notified such Holder in writing that the Prospectus is outdated or defective
      and
      prior to the receipt by such Holder of the Advice contemplated in Section 6(e).
      In no event shall the liability of any selling Holder hereunder be greater
      in
      amount than the dollar amount of the net proceeds received by such Holder upon
      the sale of the Registrable Securities covered by such Registration Statement
      giving rise to such indemnification obligation.

    

    (c) Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an “Indemnified
      Party”),
      such
      Indemnified Party shall promptly notify the Person from whom indemnity is sought
      (the “Indemnifying
      Party”)
      in
      writing, and the Indemnifying Party shall assume the defense thereof, including
      the employment of counsel reasonably satisfactory to the Indemnified Party
      and
      the payment of all fees and expenses incurred in connection with defense
      thereof; provided, that the failure of any Indemnified Party to give such notice
      shall not relieve the Indemnifying Party of its obligations or liabilities
      pursuant to this Agreement, except (and only) to the extent that such failure
      shall have prejudiced the Indemnifying Party.

    

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; or (2) the Indemnifying Party shall have failed promptly to assume
      the
      defense of such Proceeding and to employ counsel reasonably satisfactory to
      such
      Indemnified Party in any such Proceeding; or (3) the named parties to any such
      Proceeding (including any impleaded parties) include both such Indemnified
      Party
      and the Indemnifying Party, and such Indemnified Party shall have been advised
      by counsel that a material conflict of interest is likely to exist if the same
      counsel were to represent such Indemnified Party and the Indemnifying Party
      (in
      which case, if such Indemnified Party notifies the Indemnifying Party in writing
      that it elects to employ separate counsel at the expense of the Indemnifying
      Party, the Indemnifying Party shall not have the right to assume the defense
      thereof and the expense of one such counsel for each Holder shall be at the
      expense of the Indemnifying Party). The Indemnifying Party shall not be liable
      for any settlement of any such Proceeding effected without its written consent,
      which consent shall not be unreasonably withheld. No Indemnifying Party shall,
      without the prior written consent of the Indemnified Party, effect any
      settlement of any pending Proceeding in respect of which any Indemnified Party
      is a party, unless such settlement includes an unconditional release of such
      Indemnified Party from all liability on claims that are the subject matter
      of
      such Proceeding.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    

    Subject
      to the terms of this Agreement, all reasonable fees and expenses of the
      Indemnified Party (including reasonable fees and expenses to the extent incurred
      in connection with investigating or preparing to defend such Proceeding in
      a
      manner not inconsistent with this Section) shall be paid to the Indemnified
      Party, as incurred, within 10 Trading Days of written notice thereof to the
      Indemnifying Party (regardless of whether it is ultimately determined that
      an
      Indemnified Party is not entitled to indemnification hereunder; provided, that
      the Indemnifying Party may require such Indemnified Party to undertake to
      reimburse all such fees and expenses to the extent it is finally judicially
      determined that such Indemnified Party is not entitled to indemnification
      hereunder).

    

    (d) Contribution.
      If a
      claim for indemnification under Section 5(a) or 5(b) is unavailable to an
      Indemnified Party (by reason of public policy or otherwise), then each
      Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
      contribute to the amount paid or payable by such Indemnified Party as a result
      of such Losses, in such proportion as is appropriate to reflect the relative
      fault of the Indemnifying Party and Indemnified Party in connection with the
      actions, statements or omissions that resulted in such Losses as well as any
      other relevant equitable considerations. The relative fault of such Indemnifying
      Party and Indemnified Party shall be determined by reference to, among other
      things, whether any action in question, including any untrue or alleged untrue
      statement of a material fact or omission or alleged omission of a material
      fact,
      has been taken or made by, or relates to information supplied by, such
      Indemnifying Party or Indemnified Party, and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      action, statement or omission. The amount paid or payable by a party as a result
      of any Losses shall be deemed to include, subject to the limitations set forth
      in Section 5(c), any reasonable attorneys’ or other reasonable fees or expenses
      incurred by such party in connection with any Proceeding to the extent such
      party would have been indemnified for such fees or expenses if the
      indemnification provided for in this Section was available to such party in
      accordance with its terms.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph.
      Notwithstanding the provisions of this Section 5(d), no Holder shall be required
      to contribute, in the aggregate, any amount in excess of the amount by which
      the
      proceeds actually received by such Holder from the sale of the Registrable
      Securities subject to the Proceeding exceeds the amount of any damages that
      such
      Holder has otherwise been required to pay by reason of such untrue or alleged
      untrue statement or omission or alleged omission.

    

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties.

    

    6. Miscellaneous

    

    (a) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and all of the Holders of the then outstanding Registrable
      Securities. Notwithstanding the foregoing, a waiver or consent to depart from
      the provisions hereof with respect to a matter that relates exclusively to
      the
      rights of Holders and that does not directly or indirectly affect the rights
      of
      other Holders may be given by Holders of all of the Registrable Securities
      to
      which such waiver or consent relates; provided,
      however,
      that
      the provisions of this sentence may not be amended, modified, or supplemented
      except in accordance with the provisions of the immediately preceding sentence.
      

    

    (b) No
      Inconsistent Agreements.
      Neither
      the Company nor any of its subsidiaries has entered, as of the date hereof,
      nor
      shall the Company or any of its subsidiaries, on or after the date of this
      Agreement, enter into any agreement with respect to its securities, that would
      have the effect of impairing the rights granted to the Holders in this Agreement
      or otherwise conflicts with the provisions hereof. Except as set forth on
      Schedule 6(b), neither the Company nor any of its subsidiaries has previously
      entered into any agreement granting any registration rights with respect to
      any
      of its securities to any Person that have not been satisfied in
      full.

     

    (c) No
      Piggyback on Registrations.
      Neither
      the Company nor any of its security holders (other than the Holders in such
      capacity pursuant hereto) may include securities of the Company in the
      Registration Statement other than the Registrable Securities, and the Company
      shall not after the date hereof enter into any agreement providing any such
      right to any of its security holders. In addition, the Company shall not cause
      any other registration statement to become effective prior to the Effective
      Date.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    

    (d) Compliance.
      Each
      Holder covenants and agrees that it will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it in connection with sales
      of Registrable Securities pursuant to the Registration Statement.

    

    (e) Discontinued
      Disposition.
      Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of any event of the
      kind
      described in Sections 3(d)(ii) through (vi), such Holder will forthwith
      discontinue disposition of such Registrable Securities under the Registration
      Statement until such Holder’s receipt of the copies of the supplemented
      Prospectus and/or amended Registration Statement contemplated by Section 3(h),
      or until it is advised in writing (the “Advice”) by the Company that the use of
      the applicable Prospectus may be resumed, and, in either case, has received
      copies of any additional or supplemental filings that are incorporated or deemed
      to be incorporated by reference in such Prospectus or Registration Statement.
      The Company may provide appropriate stop orders to enforce the provisions of
      this paragraph.
      The
      Company agrees and acknowledges that any periods during which the Holder is
      required to discontinue the disposition of the Registrable Securities hereunder
      shall be subject to the provisions of Section 2(b).

    

    (f) Piggy-Back
      Registrations.
      If at
      any time during the Effectiveness Period there is not an effective Registration
      Statement covering all of the Registrable Securities and the Company shall
      determine to prepare and file with the Commission a registration statement
      relating to an offering for its own account or the account of others under
      the
      Securities Act of any of its equity securities, other than a registration
      statement relating to equity securities to be issued solely in connection with
      any acquisition of any entity or business or equity securities issuable in
      connection with stock option or other employee benefit plans, then the Company
      shall send to each Holder written notice of such determination and, if within
      ten Trading Days after receipt of such notice, any such Holder shall so request
      in writing, the Company shall include in the Registration Statement all or
      any
      part of such Registrable Securities such holder requests to be registered;
      provided, that, the Company shall not be required to register any Registrable
      Securities pursuant to this Section 6(f) that are eligible for resale pursuant
      to Rule 144(k) promulgated under the Securities Act or that are the subject
      of a
      then effective Registration Statement.

    

    (g) Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be delivered as set forth in the Purchase Agreement.
      

    

    (h) Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      each
      Holder. The Company may not assign its rights or obligations hereunder without
      the prior written consent of all of the Holders of the then-outstanding
      Registrable Securities. Each Holder may assign their respective rights hereunder
      in the manner and to the Persons as permitted under the Purchase
      Agreement.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    

    (i) Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

    

    (j) Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflicts of law thereof. Each party hereby irrevocably submits
      to
      the exclusive jurisdiction of the state and federal courts sitting in the City
      of New York, Borough of Manhattan, for the adjudication of any dispute hereunder
      or in connection herewith or with any transaction contemplated hereby or
      discussed herein, and hereby irrevocably waives, and agrees not to assert in
      any
      suit, action or proceeding, any claim that it is not personally subject to
      the
      jurisdiction of any such court, that such suit, action or proceeding is
      improper. Each party hereby irrevocably waives personal service of process
      and
      consents to process being served in any such suit, action or proceeding by
      mailing a copy thereof to such party at the address in effect for notices to
      it
      under the Purchase Agreement and agrees that such service shall constitute
      good
      and sufficient service of process and notice thereof. Nothing contained herein
      shall be deemed to limit in any way any right to serve process in any manner
      permitted by law. Each party hereto hereby irrevocably waives, to the fullest
      extent permitted by applicable law, any and all right to trial by jury in any
      legal proceeding arising out of or relating to this Agreement or the
      transactions contemplated hereby. If either party shall commence a Proceeding
      to
      enforce any provisions of this Agreement, then the prevailing party in such
      Proceeding shall be reimbursed by the other party for its attorneys fees and
      other costs and expenses incurred with the investigation, preparation and
      prosecution of such Proceeding.

    

    (k) Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

    

    (l) Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their reasonable efforts to
      find and employ an alternative means to achieve the same or substantially the
      same result as that contemplated by such term, provision, covenant or
      restriction. It is hereby stipulated and declared to be the intention of the
      parties that they would have executed the remaining terms, provisions, covenants
      and restrictions without including any of such that may be hereafter declared
      invalid, illegal, void or unenforceable.

    

    (m) Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    

    (n) Remedies.
      In the
      event of a breach by the Company or by a Holder, of any of their obligations
      under this Agreement, each Holder or the Company, as the case may be, in
      addition to being entitled to exercise all rights granted by law and under
      this
      Agreement, including recovery of damages, will be entitled to specific
      performance of its rights under this Agreement. The Company and each Holder
      agree that monetary damages would not provide adequate compensation for any
      losses incurred by reason of a breach by it of any of the provisions of this
      Agreement and hereby further agrees that, in the event of any action for
      specific performance in respect of such breach, it shall waive the defense
      that
      a remedy at law would be adequate.

    

    (o) Independent
      Nature of Purchasers’ Obligations and Rights.
      The
      obligations of each Purchaser hereunder is several and not joint with the
      obligations of any other Purchaser hereunder, and no Purchaser shall be
      responsible in any way for the performance of the obligations of any other
      Purchaser hereunder. Nothing contained herein or in any other agreement or
      document delivered at any closing, and no action taken by any Purchaser pursuant
      hereto or thereto, shall be deemed to constitute the Purchasers as a
      partnership, an association, a joint venture or any other kind of entity, or
      create a presumption that the Purchasers are in any way acting in concert with
      respect to such obligations or the transactions contemplated by this Agreement.
      Each Purchaser shall be entitled to protect and enforce its rights, including
      without limitation the rights arising out of this Agreement, and it shall not
      be
      necessary for any other Purchaser to be joined as an additional party in any
      proceeding for such purpose.

    

    ********************

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    
      	 	 	 
	 	XTL
              Biopharmaceuticals Ltd.
	 
 	 
 	 
 
	
            	By:  	/s/ Ron
              Bentsur 
	 	
              

              Name:
                Ron
                Bentsur

            
	 	Title: Chief
              Executive Officer

    

     

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	 	 	 
	 	APEX
              INVESTMENTS LTD. 
	 
 	 
 	 
 
	
            	By:  	/s/ Ido
              Nouberger 
	 	
              

              
                Name: Ido
                  Nouberger

              

            
	 	Title: Chief
              Executive Officer

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      
        	 	 	 
	 	APEX
                PROVIDENT FUNDS
	 
 	 
 	 
 
	
              	By:  	/s/ Eitan
                Yekutiel 
	 	
                

                
                  Name: Eitan
                    Yekutiel

                

              
	 	Title: Asset
                Manager

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      
        
          	 	 	 
	 	AVIV
                  RAIZ
	 
 	 
 	 
 
	
                	By:  	/s/ Aviv
                  Raiz 
	 	
                  

                  
                    Name: 
                      Aviv Raiz

                  

                
	 	
                  Title:

                

        

      

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

      

    

     

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	 	 	 
	 	BANK
              JULIUS BAER & CO. LTD.
	 
 	 
 	 
 
	
            	By:  	/s/ B.
              Guzman 
	 	
              

              
                Name: 
                  B.
                  Guzman

              

            
	 	
              Title: First
                Vice President

            

      	 	 	 
	 	
            
	 
 	 
 	 
 
	
            	By:  	/s/ M.
              Real 
	 	
              

              
                Name: 
                  M.
                  Real

              

            
	 	
              Title: Authorised
                Signatory

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	 	 	 
	 	KEYSTONE
              INVESTMENT TRUST
	 
 	 
 	 
 
	
            	By:  	/s/ Mark
              Barnett 
	 	
              

              
                
                  Name: Mark
                    Barnett

                

              

            
	 	
              Title: Fund
                Manager

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	CATALYTIX,
              LDC
	 
 	 
 	 
 
	
            	By:  	/s/ Theodore
              E. Kalem 
	 	
              

              
                
                  Name: Theodore
                    E. Kalem

                

              

            
	 	
              Title: Partner,
                Avery Capital Management,
                LLC

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	CATALYTIX
              LDC LIFE SCIENCE HEDGE AC
	 
 	 
 	 
 
	
            	By:  	/s/ Theodore
              E. Kalem 
	 	
              

              
                
                  Name: Theodore
                    E. Kalem

                

              

            
	 	
              Title: Partner,
                Avery Capital Management,
                LLC

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	CAPITAL
              VENTURES INTERNATIONAL
	 
 	 
 	 
 
	
            	By:  	/s/ Martin
              Kobringer 
	 	
              

              
                
                  Name: Martin
                    Kobringer

                

              

            
	 	
              Title: Investment
                Manager

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              CIMARRON
                BIOMEDICAL EQUITY 

              MASTER
                FUND L.P.

            
	 
 	 
 	 
 
	
            	By:  	/s/ Rob
              Blakeney
	 	
              

              
                
                  Name: Rob
                    Blakeney 

                

              

            
	 	
              Title: Senior
                Vice President

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              
                DIAMONDBACK
                  CAPITAL MANAGEMENT, LLC

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Mark
              G.
              Hadlock 
	 	
              

              
                
                  Name: Mark
                    G. Hadlock 

                

              

            
	 	
              Title: Secretary

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

      

       

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              
                FORMULA
                  INVESTMENT HOUSE

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Eyal
              Tesler 
	 	
              

              
                
                  
                    Name: Eyal
                      Tesler 

                  

                

              

            
	 	
              Title: Agent

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              
                
                  FORE
                    CONVERTIBLE MASTER FUND, LTD.

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Hareesh
              Paranjape 
	 	
              

              
                
                  
                    Name: Hareesh
                      Paranjape 

                  

                

              

            
	 	
              Title: Assistant
                Secretary

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              
                
                  
                    FORE
                      ERISA FUND, LTD.

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Hareesh
              Paranjape 
	 	
              

              
                
                  
                    Name: Hareesh
                      Paranjape 

                  

                

              

            
	 	
              Title: Assistant
                Secretary

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              
                
                  
                    
                      FORE
                        MULTI STRATEGYMASTER FUND,
                        LTD.

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Hareesh
              Paranjape 
	 	
              

              
                
                  
                    Name: Hareesh
                      Paranjape 

                  

                

              

            
	 	
              Title: Assistant
                Secretary

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              
                
                  
                    
                      GLG
                        NORTH AMERICAN OPPORTUNITY
                        FUND

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Tim
              Kuschill 
	 	
              

              
                
                  
                    Name: Tim
                      Kuschill 

                  

                

              

            
	 	
              Title: Legal
                Counsel

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

      

       

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              
                
                  
                    
                      HIGHBRIDGE
                        INTERNATIONAL LLC

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Adam
              J.
              Chill 
	 	
              

              
                
                  
                    Name: Adam
                      J. Chill 

                  

                

              

            
	 	
              Title: Managing
                Director

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

      

    

     

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              
                
                  
                    
                      IROQUOIS
                        MASTER FUND, LTD.

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Joshua
              Silverman 
	 	
              

              
                
                  
                    Name: Joshua
                      Silverman 

                  

                

              

            
	 	
              Title: Director

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              
                
                  
                    
                      INVESCO
                        INSTITUTIONAL INCOME
                        GROWTH

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Mark
              Barnett 
	 	
              

              
                
                  
                    Name: Mark
                      Barnett 

                  

                

              

            
	 	
              Title: Fund
                Manager

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              
                
                  
                    
                      JAMES
                        OLIVIERO, III

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ James
              Oliviero, III 
	 	
              

              
                
                  
                    Name: James
                      Oliviero, III 

                  

                

              

            
	 	
              
                Title:

              

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              
                
                  
                    
                      KENNETH
                        HOBERMAN

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Kenneth
              Hoberman 
	 	
              

              
                
                  
                    Name: Kenneth
                      Hoberman 

                  

                

              

            
	 	
              
                Title:

              

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

      

       

    

    [SIGNATURE
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                      PERPETUAL
                        INCOME AND GROWH INVESTMENT
                        TRUST

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Mark
              Barnett 
	 	
              

              
                
                  
                    
                      Name: Mark
                        Barnett 

                    

                  

                

              

            
	 	
              
                Title:
                  Fund Manager

              

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              
                
                  
                    
                      
                        MAN
                          MAC I, LTD.

                      

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Hareesh
              Paranjape 
	 	
              

              
                
                  
                    
                      Name: Hareesh
                        Paranjape 

                    

                  

                

              

            
	 	
              
                Title: Chief
                  Portfolio Manager

              

            

       

    

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    [SIGNATURE
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                        MERLIN
                          BIOMED, LP

                      

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Norman
              Schleifer 
	 	
              

              
                
                  
                    
                      Name: Norman
                        Schleifer 

                    

                  

                

              

            
	 	
              
                Title: Chief
                  Financing Officer

              

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

    

    [SIGNATURE
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                          MERLIN
                            BIOMED II,
                            LP

                        

                      

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Norman
              Schleifer 
	 	
              

              
                
                  
                    
                      Name: Norman
                        Schleifer 

                    

                  

                

              

            
	 	
              
                Title: Chief
                  Financing Officer

              

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              
                
                  
                    
                      
                        
                          MERLIN
                            BIOMED ROUNDTABLE FUND,
                            LP

                        

                      

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Norman
              Schleifer 
	 	
              

              
                
                  
                    
                      Name: Norman
                        Schleifer 

                    

                  

                

              

            
	 	
              
                Title: Chief
                  Financing Officer

              

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

    

    [SIGNATURE
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                          MERLIN
                            BIOMED INTERNATIONAL,
                            LP

                        

                      

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Norman
              Schleifer 
	 	
              

              
                
                  
                    
                      Name: Norman
                        Schleifer 

                    

                  

                

              

            
	 	
              
                Title: Chief
                  Financing Officer

              

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

    

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                          NARRAGANSETT
                            OFFSHORE,
                            LTD.

                        

                      

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Joseph
              L.
              Dowling, III 
	 	
              

              
                
                  
                    
                      Name: Joseph
                        L. Dowling, III 

                    

                  

                

              

            
	 	
              
                Title:
 Authorized
                  Signature

              

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

    

    [SIGNATURE
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                          NARRAGANSETT
                            I, LP

                        

                      

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ 
Joseph
              L. Dowling, III 
	 	
              

              
                
                  
                    
                      Name: Joseph
                        L. Dowling, III 

                    

                  

                

              

            
	 	
              
                
                  Title:
                     Authorized
                    Signature

                

              

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	
            	 	 
	 	
              
                
                  
                    
                      
                        
                          
                            NORTH
                              SOUND LEGACY INSTITUTIONAL

                            FUND
                              LLC

                          

                        

                      

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ 
Andrew
              B. David 
	 	
              

              
                
                  
                    
                      Name: Andrew
                        B. David 

                    

                  

                

              

            
	 	
              
                
                  Title: General
                    Counsel

                

              

            

      

        
          
            
            

          

          
            
            

            
              

            

          

           

        

    

     

    [SIGNATURE
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	 	NORTH
              SOUND LEGACY INTERNATIONAL LTD.
	 
 	 
 	 
 
	
            	By:  	/s/ Andrew
              B.
              David 
	 	
              
Name: Andrew
              B. David 
	 	Title: General
              Counsel

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

    
      	 	 	 
	 	PORTSIDE
              GROWTH AND OPPORTUNITY FUND
	 
 	 
 	 
 
	
            	By:  	/s/ Jeffrey
              Smith 
	 	
              
Name: Jeffrey
              Smith 
	 	Title: Authorized
              Signatory

    

     

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	 	 	 
	 	BRAMDEAN
              UK EQUITY FUND
	 
 	 
 	 
 
	
            	By:  	/s/ Mark
              Barnett 
	 	
              
Name: Mark
              Barnett 
	 	Title: Fund
              Manager

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	 	 	 
	 	RAQ,
              LLC
	 
 	 
 	 
 
	
            	By:  	/s/Lindsay
              A.
              Rosenwald, MD 
	 	
              
Name: Lindsay
              A. Rosenwald, MD 
	 	Title: Managing
              Member

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [SIGNATURE
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	 	ROCK
              SECURITIES LIMITED
	 
 	 
 	 
 
	
            	By:  	/s/ Simon
              Dryan 
	 	
              
Name: Simon
              Dryan 
	 	Title: Director

    

    
      	 	 	 
	 	 
	 
 	 
 	 
 
	
            	By:  	/s/ Kenneth
              Kemsley 
	 	
              
Name: Kenneth
              Kemsley 
	 	Title: Director

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	 	 	 
	 	SENVEST
              MASTER FUND LP 
	 
 	 
 	 
 
	
            	By:  	/s/ George
              Malikonis 
	 	
              

              Name: George
                Malikonis 

            
	 	Title: Vice
              President

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	 	 	 
	 	SENVEST
              ISRAEL PARTNERS LP 
	 
 	 
 	 
 
	
            	By:  	/s/ George
              Malikonis 
	 	
              
Name: George
              Malikonis 
	 	Title: Vice
              President

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	 	 	 
	 	SONOSTAR
              CAPITAL PARTNERS LLC 
	 
 	 
 	 
 
	
            	By:  	/s/ Gregory
              F. Kiernan 
	 	
              
Name: Gregory
              F. Kiernan 
	 	Title: Managing
              Partner

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

    
      	 	 	 
	 	VALESCO
              HEALTHCARE PARTNERS I LP
	 
 	 
 	 
 
	 	By:  	/s/ I.
              Keith
              Maher 
	 	
              
Name: I.
              Keith Maher 
	 	Title: Portfolio
              Manager

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	 	 	 
	 	VALESCO
              HEALTHCARE PARTNERS II LP
	 
 	 
 	 
 
	
            	By:  	/s/ 
I.
              Keith
              Maher 
	 	
              
Name: I.
              Keith Maher 
	 	Title: Portfolio
              Manager

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

     

    
      	 	 	 
	 	VALESCO
              HEALTHCARE OVERSEAS FUND LTD.
	 
 	 
 	 
 
	
            	By:  	/s/ I.
              Keith
              Maher 
	 	
              
Name: I.
              Keith Maher 
	 	Title: Portfolio
              Manager

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO RRA]

    
      	 	 	 
	 	YOURDENT
              LTD.
	 
 	 
 	 
 
	
            	By:  	/s/ Yory
              Rabinovitch 
	 	
              
Name: Yory
              Rabinovitch  
	 	Title: Chief
              Executive Officer

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Exhibit
      A

     

    Plan
      of Distribution

     

    The
      selling shareholders and any of their pledgees, assignees and
      successors-in-interest may, from time to time, sell any or all of their ADRs
      on
      any stock exchange, market or trading facility on which the ADRs are traded
      or
      in private transactions. These sales may be at fixed or negotiated prices.
      The
      selling shareholders may use any one or more of the following methods when
      selling ordinary shares:

     

    
      	·  	
              ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits purchasers;

            

    

     

    
      	·  	
              block
                trades in which the broker-dealer will attempt to sell the ADRs as
                agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;

            

    

     

    
      	·  	
              purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;

            

    

     

    
      	·  	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            

    

     

    
      	·  	
              privately
                negotiated transactions;

            

    

     

    
      	·  	
              settlement
                of short sales created after the date of this
                Prospectus;

            

    

     

    
      	·  	
              broker-dealers
                may agree with the selling shareholders to sell a specified number
                of such
                ADRs at a stipulated price per ADR;

            

    

     

    
      	·  	
              a
                combination of any such methods of sale;
                and

            

    

     

    
      	·  	
              any
                other method permitted pursuant to applicable
                law.

            

    

     

    The
      selling shareholders may also sell ADRs under Rule 144 under the Securities
      Act,
      if available, rather than under this prospectus. Broker-dealers engaged by
      the
      selling shareholders may arrange for other brokers-dealers to participate in
      sales. Broker-dealers may receive commissions or discounts from the selling
      shareholders (or, if any broker-dealer acts as agent for the purchaser of
      shares, from the purchaser) in amounts to be negotiated. The selling
      shareholders do not expect these commissions and discounts to exceed what is
      customary in the types of transactions involved.

     

    The
      selling shareholder may from time to time pledge or grant a security interest
      in
      some or all of the ADRs owned by them and, if they default in the performance
      of
      their secured obligations, the pledgees or secured parties may offer and sell
      the ADRs from time to time under this prospectus, or under an amendment to
      this
      prospectus under Rule 424(b)(3) or other applicable provision of the Securities
      Act of 1933 amending the list of selling shareholders to include the pledgee,
      transferee or other successors in interest as selling shareholders under this
      prospectus.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      selling shareholders also may transfer the ADRs in other circumstances, in
      which
      case the transferees, pledgees or other successors in interest will be the
      selling beneficial owners for purposes of this prospectus.

     

    The
      selling shareholders and any broker-dealers or agents that are involved in
      selling the ADRs may be deemed to be “underwriters” within the meaning of the
      Securities Act in connection with such sales. In such event, any commissions
      received by such broker-dealers or agents and any profit on the resale of the
      ADRs purchased by them may be deemed to be underwriting commissions or discounts
      under the Securities Act. The selling shareholders have informed the Company
      that none of them have any agreement or understanding, directly or indirectly,
      with any person to distribute the ADRs.

     

    The
      Company is required to pay all fees and expenses incurred by the Company
      incident to the registration of the ADRs. The Company has agreed to indemnify
      the selling shareholders against certain losses, claims, damages and
      liabilities, including liabilities under the Securities Act.Exhibit
      10.34

     

    SECURITIES
      PURCHASE AGREEMENT

     

    This
      Securities Purchase Agreement (this “Agreement”)
      is
      dated as of October 25, 2007 among XTL Biopharmaceuticals Ltd., a public
      company limited by shares organized under the laws of the State of Israel
(the
      “Company”),
      and
      the purchasers identified on the signature pages hereto (each a “Purchaser”
and
      collectively the “Purchasers”);
      and

     

    WHEREAS,
      subject to the terms and conditions set forth in this Agreement and pursuant
      to
      Section 4(2) of the Securities Act (as defined below), and Rule 506 and
      Regulation S promulgated thereunder, the Company desires to issue and sell
      to
      the Purchasers, and the Purchasers, severally and not jointly, desire to
      purchase from the Company (the “Offering”)
      in the
      aggregate, up to 89,000,000 Shares (as defined below) (the “Maximum
      Offering Amount”).
      

     

    NOW,
      THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
      and for other good and valuable consideration the receipt and adequacy of which
      are hereby acknowledged, the Company and each Purchaser agrees as follows:
      

     

    ARTICLE
      I.

    DEFINITIONS
      

     

    1.1 Definitions.
      In
      addition to the terms defined elsewhere in this Agreement, for all purposes
      of
      this Agreement, the following terms have the meanings indicated in this Section
      1.1: 

     

    “Affiliate”
means
      any Person that, directly or indirectly through one or more intermediaries,
      controls or is controlled by or is under common control with a Person as such
      terms are used in and construed under Rule 144 of the Securities Act. With
      respect to a Purchaser, any investment fund or managed account that is managed
      on a discretionary basis by the same investment manager as such Purchaser will
      be deemed to be an Affiliate of such Purchaser. 

     

    “Business
      Day”
means
      any day except Saturday, Sunday and any day which shall be a federal legal
      holiday or a day on which banking institutions in the State of New York are
      authorized or required by law or other governmental action to close.

     

    “Closing”
means
      the closing of the purchase and sale of the Shares pursuant to this Agreement.
      

     

    “Closing
      Date”
means
      November 1, 2007, or as soon as reasonably practicable thereafter. 

     

    “Commission”
means
      the Securities and Exchange Commission. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Company
      Counsel”
means
      Alston & Bird LLP. 

     

    “Disclosure
      Documents” means
      (a)
      the Company’s Annual Report on Form 20-F as filed with the Securities and
      Exchange Commission (“SEC”)
      on
      March 23, 2007; and (b) the Company’s interim financial results filed on a Form
      6-K with the SEC on August 23, 2007. 

     

    “Effective
      Date”
means
      the date that the Registration Statement is first declared effective by the
      Commission.

     

    “Escrow
      Agent”
means
      Wilmington Trust Company.

     

    “Escrow
      Agreement”
means
      the Escrow Agreement, dated as of the date of the Agreement, among the Company,
      the Escrow Agent, and the placement agents listed therein.

     

    “Escrowed
      Funds”
has
      the
      meaning ascribed to such term in Section 2.2(b)(vii) of this
      Agreement.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended. 

     

    “Expiration
      Date”
shall
      mean October 31, 2007, or such other date within 30 days thereafter as may
      be
      selected by the Company in its sole discretion without notice to investors.
      

     

    “Israeli
      Company Counsel”
means
      Kantor & Co.

     

    “Liens”
means
      a
      lien, charge, security interest, encumbrance, right of first refusal or other
      restriction. 

     

    “Material
      Adverse Effect”
shall
      have the meaning ascribed to such term in Section 3.1(a). 

     

    “Ordinary
      Shares”
      means
      the Company’s ordinary shares, par value NIS 0.02.

     

    “Per
      Share Purchase Price”
equals
      $.135; equivalent to $1.35 per ADR.

     

    “Person”
means
      an individual or corporation, partnership, trust, incorporated or unincorporated
      association, joint venture, limited liability company, joint stock company,
      government (or an agency or subdivision thereof) or other entity of any kind.
      

     

    “Placement
      Agent Agreement”
      means
      the Placement Agent Agreement, dated October 15, 2007, between the Company
      and
      certain placement agents listed therein.

     

    “Placement
      Agents”
      means
      the placement agents named in the Placement Agent Agreement.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    “Registration
      Statement”
means
      a
      registration statement meeting the requirements set forth in the Registration
      Rights Agreement and covering the resale by the Purchasers of the Shares.

     

    “Registration
      Rights Agreement”
means
      the Registration Rights Agreement, dated as of the date of this Agreement,
      among
      the Company and each Purchaser, in the form of Exhibit A hereto.

     

    “Rule
      144”
means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as
      such Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule. 

     

    “Securities”
      means
      the
      Shares.

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended. 

     

    “Shares”
means
      the Ordinary Shares issuable to each Purchaser pursuant to this Agreement.
      

     

    “Subscription
      Amount”
means,
      as to each Purchaser and the Closing, the amounts set forth below such
      Purchaser’s signature block on the signature page hereto, in United States
      dollars and in immediately available funds. 

     

    “Trading
      Day”
means
      (i) a day on which American Depositary Receipts representing Ordinary
      Shares (“ADRs”),
      are
      traded on a Trading Market, or (ii) if the ADRs are not listed on a Trading
      Market, a day on which the ADRs are traded on the over-the-counter market,
      as
      reported by the OTC Bulletin Board, or (iii) if the ADRs are not quoted on
      the OTC Bulletin Board, a day on which the ADRs are quoted in the
      over-the-counter market as reported by the National Quotation Bureau
      Incorporated (or any similar organization or agency succeeding to its functions
      of reporting prices); provided, that in the event that the ADRs are not listed
      or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day
      shall mean a Business Day. 

     

    “Trading
      Market”
means
      the following markets or exchanges on which the ADRs are listed or quoted for
      trading on the date in question: the American Stock Exchange, the New York
      Stock
      Exchange, or the Nasdaq Stock Market. 

     

    “Transaction
      Documents”
means
      this Agreement, the Registration Rights Agreement, the Escrow Agreement and
      any
      other documents or agreements executed in connection with the transactions
      contemplated hereunder. 

     

    ARTICLE
      II.

    PURCHASE
      AND SALE 

     

    2.1 Closing.
      Each
      Purchaser shall purchase from the Company, and the Company shall issue, on
      the
      terms and conditions set forth in this Agreement, and sell to each Purchaser,
      a
      number of Shares equal to such Purchaser’s Subscription Amount divided by the
      Per Share Purchase Price. Upon satisfaction of the conditions set forth in
      Section 2.2, the Closing shall occur at the offices of the Company, or such
      other location as the parties shall mutually agree. The Company may continue
      the
      Offering, in one or more Closings, until the earlier of the sale of the Maximum
      Offering Amount or until the Expiration Date. Purchasers will be required to
      deliver executed, binding Securities Purchase Agreements by the Expiration
      Date,
      the Closing of which will only be subject to the satisfaction of the Closing
      conditions in Section 2.2.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    2.2 
      Closing Conditions.

     

    (a) As
      a
      condition to the Purchasers’ obligation to close, at the Closing (unless
      otherwise specified below) the Company shall have satisfied each of the
      conditions set forth below or shall deliver or cause to be delivered to each
      Purchaser the items set forth below, as appropriate, any one or more of which
      may be waived in writing by the Purchasers: 

     

    (i) this
      Agreement duly executed by the Company; 

     

    (ii) the
      Registration Rights Agreement duly executed by the Company; 

     

    (iii) the
      Escrow Agreement duly executed by the Company, the Escrow Agent and the
      placement agents listed therein; 

     

    (iv) a
      legal
      opinion of each of Company Counsel and Israeli Company Counsel, in the forms
      in
      Exhibit B attached hereto;

     

    (v) the
      representations and warranties made by the Company herein shall be true and
      correct in all material respects (except any representation and warranty that
      is
      qualified by materiality or Material Adverse Effect shall be true and correct
      in
      all respects) as of the date hereof and as of the Closing Date with the same
      effect as if the representations and warranties were made as of the date hereof
      and as of the Closing Date;

     

    (vi) all
      covenants, agreements and conditions contained in this Agreement to be performed
      by the Company on or prior to the Closing shall have been performed or complied
      with in all material respects; 

     

    (vii) no
      statute, rule, regulation, order, decree, ruling or injunction shall have been
      enacted, entered, promulgated, endorsed or threatened or is pending by or before
      any governmental authority of competent jurisdiction which in any material
      respect restricts, prohibits or threatens to restrict or prohibit the
      consummation of any of the transactions contemplated by the Transaction
      Documents; and

     

    (viii) as
      of the
      Closing Date, there shall have been no Material Adverse Effect with respect
      to
      the Company since the date hereof.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    With
      respect to the closing conditions listed in (v), (vi), (vii) and (viii) above,
      the Company shall deliver a certificate to such effect, in form and substance
      reasonably satisfactory to the Placement Agents.

     

    (b) As
      a
      condition to the Company’s obligation to close, at the Closing, each Purchaser
      shall have satisfied each of the conditions set forth below or shall deliver
      or
      cause to be delivered to the Company the items set forth below, as appropriate,
      any one or more of which may be waived in writing by the Company: 

     

    (i) this
      Agreement duly executed by such Purchaser; 

     

    (ii) the
      Registration Rights Agreement duly executed by such Purchaser;

     

    (iii) the
      representations and warranties made by the Purchasers herein shall be true
      and
      correct in all material respects (except any representation and warranty that
      is
      qualified by materiality or Material Adverse Effect shall be true and correct
      in
      all respects) as of the date hereof and as of the Closing Date with the same
      effect as if the representations and warranties were made as of the date hereof
      and as of the Closing Date;

     

    (iv) the
      Escrow Agreement duly executed by the Company, the Escrow Agent and the
      placement agents listed therein;

     

    (v) each
      Purchaser shall have performed, satisfied and complied in all material respects
      with all covenants, agreements and conditions required by the Transaction
      Documents to be performed, satisfied or complied with by such Purchaser at
      or
      before the Closing; 

     

    (vi) no
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated, endorsed or threatened or is pending
      by
      or before any governmental authority of competent jurisdiction which prohibits
      or threatens to prohibit the consummation of any of the transactions
      contemplated by the Transaction Documents; and

     

    (vii) each
      Purchaser shall have caused
      such Purchaser’s Subscription Amount to be deposited by wire transfer of
      immediately available funds to such non-interest bearing escrow account of
      the
      Escrow Agent as the Escrow Agent shall designate (the “Escrowed
      Funds”),
      and the
      Escrow Agent shall have confirmed that it is prepared to transfer such amount
      to
      the Company subject only to satisfaction of the receipt of the certificate
      provided in Section 2.3 hereof; and

     

    (viii) as
      of the
      Closing Date, there shall have been no Material Adverse Effect with respect
      to
      the Company since the date hereof. 

     

    (c) As
      a
      condition to the Company’s and each Purchaser’s obligation to close, by the time
      of the Closing, the Company’s Ordinary Shares on
      the
      Official List of the United Kingdom Listing Authority
      shall
      have been de-listed, and the Registration Statement shall be declared effective
      only following such de-listing.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (d) As
      a
      condition to the Company’s and each Purchaser’s obligation to close, by the time
      of the Closing, the board of directors of the Company shall have approved the
      issuance of the Shares.

     

    (e) As
      a
      condition to the Company’s and each Purchaser’s obligation to close, by the time
      of the Closing, the Tel Aviv Stock Exchange shall have approved the listing
      of
      the Shares.

     

    2.3 Escrow
      Arrangement.
      Each
      Purchaser shall be deemed to have irrevocably instructed the Escrow Agent to
      deliver such Purchaser’s Escrowed Funds to such bank account(s) of the Company
      as the Company shall have specified to the Escrow Agent on the Effective Date,
      subject only to the Escrow Agent having received
      a
      certificate, dated the Effective Date, executed by the Company certifying that
      the Registration Statement shall have been declared effective by the Commission.
      Following
      delivery to the Escrow Agent of the certificate referred to in this Section
      2.3,
      (i) the Escrow Agent shall promptly cause the Escrowed Funds to be sent by
      wire
      transfer to the bank account(s) specified by the Company in writing, and (ii)
      the Company shall cause to be delivered to The Bank of New York a single
      certificate for Ordinary Shares, registered in the name of The Bank of New
      York
      or its designee, on the Effective Date, and shall thereafter cause The Bank
      of
      New York to immediately issue ADRs registered in the name of such Purchaser
      or
      its designee, representing the number of Shares acquired by such Purchaser,
      in
      accordance with Section 4.10 hereof. If the Company has not delivered to the
      Escrow Agent a certificate certifying that the Registration Statement shall
      have
      been declared effective by the Commission, on or before October 18, 2008, or
      the
      condition in Section 2.2(c) has not been satisfied within 60 days of the
      execution of this Agreement, then the Company shall deliver to the Escrow Agent
      a notice terminating the Offering upon the receipt of which the Escrow Agent
      shall distribute the Escrowed Funds to each Purchaser.

     

    2.4 Satisfaction
      of Conditions.
      Following the deposit of the Escrowed Funds by the Purchaser with the Escrow
      Agent pursuant to Section 2.2(b)(vii), this Agreement shall become wholly
      unconditional except for the satisfaction of the condition specified in Section
      2.3 and shall not be capable of termination or rescission save for the
      non-satisfaction of such condition.

     

    ARTICLE
      III.

    REPRESENTATIONS
      AND WARRANTIES 

     

    3.1 Representations
      and Warranties of the Company. The
      Company and XTL Biopharmaceuticals Inc., and XTL Development, Inc., each a
      Delaware corporation (the “Subsidiaries”),
      the
      Company’s subsidiaries, hereby make the following representations and warranties
      as of the date hereof and as of the Closing Date to each Purchaser:

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    (a) Organization
      and Qualification. The
      Company and each of the Subsidiaries is an entity duly organized, validly
      existing and in good standing under the laws of the jurisdiction of its
      respective organization, with the requisite corporate power and authority to
      own
      and use its properties and assets and to carry on its business as currently
      conducted. Neither the Company nor the Subsidiaries are in violation of any
      of
      the provisions of its Memorandum and Articles of Organization, bylaws, or other
      organizational documents. The Company has no wholly-owned subsidiaries other
      than the Subsidiaries. The Company and each of the Subsidiaries is duly
      qualified to conduct business and is in good standing as a foreign corporation
      or other entity in each jurisdiction in which the nature of the business
      conducted or property owned by it makes such qualification necessary, except
      where the failure to be so qualified or in good standing, as the case may be,
      would not have or reasonably be expected to result in (i) a material
      adverse effect on the legality, validity or enforceability of any Transaction
      Document, (ii) a material adverse effect on the results of operations,
      assets, properties, business or financial condition of the Company or the
      Subsidiaries, or (iii) a material adverse effect on the Company’s ability
      to perform in any material respect on a timely basis its obligations under
      any
      Transaction Document (any of (i), (ii) or (iii), a “Material
      Adverse Effect”).
      

     

    (b) Authorization;
      Enforcement. The
      Company has the requisite corporate power and authority to enter into and to
      consummate the transactions contemplated by each of the Transaction Documents
      and otherwise to carry out its obligations thereunder. The execution and
      delivery of each of the Transaction Documents by the Company and the
      consummation by it of the transactions contemplated thereby have been duly
      authorized by all necessary action on the part of the Company and no further
      action is required by the Company, its board of directors or its shareholders
      in
      connection therewith. Each Transaction Document has been (or, if executed after
      the date hereof, upon delivery will be) duly executed by the Company and, when
      delivered in accordance with the terms hereof, will constitute the valid and
      binding obligation of the Company enforceable against the Company in accordance
      with its terms except (i) as limited by applicable bankruptcy, insolvency,
      reorganization, moratorium and other laws of general application affecting
      enforcement of creditors’ rights generally and (ii) as limited by laws
      relating to the availability of specific performance, injunctive relief or
      other
      equitable remedies, and (iii) with respect to the indemnification
      provisions set forth in the Registration Rights Agreement, as limited by public
      policy. 

     

    (c) No
      Conflicts. The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated thereby
      do
      not and will not (i) conflict with or violate any provision of the
      Company’s or the Subsidiaries’ Memorandum and Articles of Association, bylaws or
      other organizational documents, or (ii) conflict with, or constitute a
      default (or an event that with notice or lapse of time or both would become
      a
      default) under, or give to others any rights of termination, amendment,
      acceleration or cancellation (with or without notice, lapse of time or both)
      of,
      any agreement, credit facility, debt or other instrument (evidencing a debt
      of
      the Company or the Subsidiaries or otherwise) or other understanding to which
      any of the Company or the Subsidiaries are a party or by which any property
      or
      asset of the Company or the Subsidiaries is bound or affected, or
      (iii) result in a violation of any law, rule, regulation, order, judgment,
      injunction, decree or other restriction of any court or governmental authority
      to which any of the Company or Subsidiaries are subject (including U.S. federal
      and state securities laws and regulations and the rules and regulations of
      any
      Trading Market), or by which any property or asset of any of the Company or
      the
      Subsidiaries is bound or affected; except in the case of each of clauses
      (ii) and (iii), such as would not have or reasonably be expected to result
      in a Material Adverse Effect. 

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    (d) Filings,
      Consents and Approvals. The
      Company is not required to obtain any consent, waiver, authorization or order
      of, give any notice to, or make any filing or registration with, any court
      or
      other U.S. federal, state, local or other governmental authority or other Person
      in connection with the execution, delivery and performance by the Company of
      the
      Transaction Documents, other than (i) the filing with the Commission of the
      Registration Statement, and one or more Forms D with respect to the Securities
      as may be required under Regulation D of the Securities Act, the
      application(s) to each Trading Market for the listing of the ADRs representing
      the Securities for trading thereon in the time and manner required thereby,
      and
      applicable Blue Sky filings, and (ii) such as have already been obtained or
      such exemptive filings as are required to be made under applicable state and
      federal securities laws. 

     

    (e) Capitalization.
      As
      of
      September 30, 2007, the authorized capital stock of the Company consisted of
      300,000,000 Ordinary Shares, of which 220,156,932
      Ordinary
      Shares were issued and outstanding. As of October 2, 2007, the Company’s
      shareholders approved an increase in the authorized capital stock of the
      Company, and the Company therefore now has, as of the date hereof, authorized
      capital stock of the Company consisting of 500,000,000 Ordinary Shares. All
      of
      such outstanding Ordinary Shares are, and all of the Shares, when issued, will
      be, duly authorized, validly issued, fully paid and nonassessable, and free
      and
      clear of all liens created by the Company, and all such Ordinary Shares were,
      and the Shares will be, issued in material compliance with all applicable U.S.
      federal and state securities laws, including available exemptions therefrom,
      and
      none of such issuances were, and the issuance of the Shares will not be, made
      in
      violation of any pre-emptive or other rights. The Company has reserved from
      its
      duly authorized capital stock the maximum number of Shares issuable pursuant
      to
      this Agreement. The issuance of the Shares will not trigger any anti-dilution
      rights of any existing securities of the Company. Except as set forth on
Schedule
      3.1(e),
      as of
      the Closing Date, there will be no rights, subscriptions, warrants, options,
      conversion rights, or agreements of any kind outstanding to purchase from the
      Company, or otherwise require the Company to issue, any shares of capital stock
      of the Company or securities or obligations of any kind convertible into or
      exchangeable for any shares of capital stock of the Company.

     

    (f) Reports
      and Financial Statements.
      The
      Company has filed all reports required to be filed by it under the Exchange
      Act
      on a timely basis or has received a valid extension of such time of filing
      and
      has filed any such reports prior to the expiration of any such extension. The
      Company has made available to the Purchasers, prior to the execution of this
      Agreement, a copy of the Company’s annual report on Form 20-F filed with the
      Commission on March 23, 2007, and will make available any Current Reports on
      Form 6-K filed by the Company (as such documents have since the time of their
      filing been amended or supplemented, and together with all reports, documents
      and information filed on or after the date first written above through the
      date
      of Closing with the Commission, including all information incorporated therein
      by reference, collectively, the “SEC
      Reports”).
      The
      SEC Reports (a) complied and will comply as to form in all material respects
      with the requirements of the Securities Act and the Exchange Act, and (b) did
      not, at the time of their filing, contain any untrue statement of a material
      fact or omit to state a material fact required to be stated therein or necessary
      in order to make the statements therein, in light of the circumstances under
      which they were made, not misleading. The
      financial statements included in the SEC Reports comply in all material respects
      with the applicable accounting requirements and the rules and regulations of
      the
      SEC with respect thereto as in effect at the time of filing. The financial
      statements included in the SEC Reports and the Disclosure Documents, have been
      prepared in accordance with generally accepted accounting principles in the
      United States applied on a consistent basis (“GAAP”),
      and
      fairly represent the financial position of the Company and its Subsidiaries
      as
      of and for the dates thereof and the results of operations and cash flows for
      the periods then ended, subject, in the case of unaudited statements, to normal,
      year-end audit adjustments and the omission of certain footnotes.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    (g) No
      Material Change.
      Since
      June 30, 2007, and except as disclosed in its SEC Reports, (i) the Company
      has
      not incurred any material liabilities or obligations, indirect, or contingent,
      or entered into any material oral or written agreement or other transaction
      which is not in the ordinary course of business or which could reasonably be
      expected to result in a material reduction in the future earnings of the
      Company; (ii) the Company has not sustained any loss or interference with its
      businesses or properties (whether or not covered by insurance) that could
      reasonably be expected to have a Material Adverse Effect; (iii) the Company
      has
      not paid or declared any dividends or other distributions with respect to its
      capital stock, or redeemed or purchased or otherwise acquired any of its stock
      and the Company is not in default in the payment of principal or interest on
      any
      outstanding debt obligations; (iv) the Company has not changed any compensation
      arrangement or agreement with any of its key employees or executive officers,
      or
      change the rate of pay of its employees as a group, other than in the ordinary
      course of business; (v) the Company has not changed or amended any contract
      by
      which the Company or any of its asset are bound or subject that would have
      a
      Material Adverse Effect; (vi) there has not been any change in the capital
      stock
      of the Company other than the sale of the Securities hereunder or shares or
      options issued pursuant to employee equity incentive plans or purchase plans
      approved by the Company’s Board of Directors, or indebtedness not incurred in
      the ordinary course of business that is material to the Company; and (vii)
      there
      has not been any other event which has caused, or is likely to cause, a Material
      Adverse Effect.

     

    (h) Litigation.
      Except
      as
      would not reasonably be expected to result in a Material Adverse Effect on
      the
      Company, there is no action, suit, claim, proceeding, inquiry or investigation
      before or by any court, public board, government agency, self-regulatory
      organization or body pending against or, to the knowledge of the Company,
      threatened against the Company or either of the Subsidiaries. The Company is
      not
      subject to any order, writ, judgment, injunction, decree or award of any court
      or any governmental authority which would reasonably be expected to result
      in a
      Material Adverse Effect on the Company.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    (i) Compliance.
      The
      Company has not been advised, nor does the Company have reason to believe,
      that
      it is not conducting its business in compliance with all applicable laws, rules
      and regulations of the jurisdictions in which it is conducting its business,
      except where failure to be so in compliance would not reasonably be expected
      to
      have a Material Adverse Effect.

     

    (j) Intellectual
      Property.
      (i) The
      Company owns or has obtained licenses or options for the inventions, patent
      applications, patents, trademarks (both registered and unregistered), trade
      names, copyrights and trade secrets necessary for the conduct of the Company’s
      business as currently conducted (collectively, the “Intellectual
      Property”);
      and
      (ii) (a) to the knowledge of the Company, there are no third parties who have
      any ownership rights to any Intellectual Property that is owned by, or has
      been
      licensed to, the Company for the products described in the Disclosure Documents
      that would preclude the Company from conducting its business as currently
      conducted and have a Material Adverse Effect, except for the ownership rights
      of
      the owners of the Intellectual Property licensed or optioned by the Company;
      (b)
      there is no pending or, to the Company’s knowledge, threatened action, suit,
      proceeding or claim by others challenging the rights of the Company in or to
      any
      Intellectual Property owned, licensed or optioned by the Company, other than
      claims which would not reasonably be expected to have a Material Adverse Effect;
      (c) there is no pending or, to the Company’s knowledge, threatened action, suit,
      proceeding or claim by others challenging the validity or scope of any
      Intellectual Property owned, licensed or optioned by the Company, other than
      non-material actions, suits, proceedings and claims; and (d) there is no pending
      or, to the Company’s knowledge, threatened action, suit, proceeding or claim by
      others that the Company infringes or otherwise violates any patent, trademark,
      copyright, trade secret or other proprietary right of others, other than
      non-material actions, suits, proceedings and claims.

     

    (k) Material
      Agreements.
      All
      material agreements (“Material
      Agreements”)
      to
      which the Company or either of the Subsidiaries is a party or to which the
      property or assets of the Company or either of the Subsidiaries are subject
      are
      included as part of or specifically identified in the SEC Reports to the extent
      required by the rules and regulations of the SEC as in effect at the time of
      filing. Except for the Material Agreements, the Company has no material
      contracts. Neither the Company nor, to the Company’s knowledge, any other party
      to the Material Agreements, is in breach of or default under any of such
      contracts which would reasonably be expected to have a Material Adverse
      Effect.

     

    (l) Taxes.
      Except
      as disclosed in the Disclosure Documents or the SEC Reports, the Company and
      each of the Subsidiaries have filed all necessary federal, state and foreign
      income and franchise tax returns and has paid or accrued all taxes shown as
      due
      thereon, and the Company has no knowledge of a tax deficiency which has been
      or
      might be asserted or threatened against it which might reasonably be expected
      to
      have a Material Adverse Effect.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    (m) Governmental
      Permits, Etc.
      The
      Company has all franchises, licenses, certificates and other authorizations
      from
      such federal, state or local government or governmental agency, department
      or
      body that are currently required for the operation of the business of the
      Company as currently conducted, except where the failure to posses currently
      such franchises, licenses, certificates and other authorizations is not
      reasonably expected to have a Material Adverse Effect. The Company has not
      received any notice of proceedings relating to the revocation or modification
      of
      any such permit which, if the subject of an unfavorable decision, ruling or
      finding, could reasonably be expected to have a Material Adverse
      Effect.

     

    (n) Conformity
      of Descriptions.
      The
      Shares conform in all material respects to the descriptions of the Company’s
      Ordinary Shares contained in the Company’s SEC Reports and other filings with
      the Commission and the Disclosure Documents.

     

    (o) Statements
      True and Correct. No
      representation, warranty, statement, certificate, instrument, or other writing
      furnished or to be furnished by the Company to Purchaser or its representatives
      pursuant to this Agreement, the Disclosure Documents or any other document,
      agreement, or instrument referred to herein contains or will contain any untrue
      statement of material fact or will omit to state a material fact necessary
      to
      make the statements therein not misleading. 

     

    (p) Certain
      Fees. Any
      brokerage, finder’s fees or commissions that are or will be payable by the
      Company to any broker, financial advisor or consultant, finder, placement agent,
      investment banker, bank or other Person with respect to the transactions
      contemplated by this Agreement will be paid solely by the Company. 

     

    (q) Private
      Placement. Neither
      the Company nor any Person acting on behalf of the Company has sold or offered
      to sell or solicited any offer to buy the Securities by means of any form of
      general solicitation or advertising. Assuming the accuracy of the Purchasers
      representations and warranties set forth in Section 3.2, no registration
      under the Securities Act is required for the offer, issuance and sale of the
      Securities by the Company to the Purchasers as contemplated hereby. The issuance
      and sale of the Securities hereunder does not contravene the rules and
      regulations of any Trading Market. 

     

    (r) Offering
      Materials.
      The
      Company has not distributed and will not distribute prior to the Closing Date
      any offering material in connection with the offering and sale of the Securities
      other than the Disclosure Documents or any amendment or supplement thereto.
      Neither the Company nor any person acting on its behalf has in the past or
      will
      hereafter take any action independent of the placement agent to sell, offer
      for
      sale or solicit offers to buy any securities of the Company which would subject
      the offer, issuance or sale of the Securities, as contemplated by this
      Agreement, to the registration requirements of Section 5 of the Securities
      Act.

     

    (s) Investment
      Company. The
      Company is not, and is not an Affiliate of, an “investment company” within the
      meaning of the Investment Company Act of 1940, as amended. 

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    (t) Application
      of Takeover Protections. Assuming
      the Purchasers beneficially own any Ordinary Shares prior to the date hereof,
      the Company and its Board of Directors have taken all necessary action, if
      any,
      in order to render inapplicable any control share acquisition, business
      combination, poison pill (including any distribution under a rights agreement)
      or other similar anti-takeover provision under the Company’s charter documents)
      or the laws of its jurisdiction of organization that is or could become
      applicable to the Purchasers as a result of the Purchasers and the Company
      fulfilling their obligations or exercising their rights under the Transaction
      Documents, including without limitation the Company’s issuance of the Shares and
      the Purchasers’ ownership of the Shares. 

     

    (u) No
      Integrated Offering. Neither
      the Company, nor any of its Affiliates, nor any Person acting on its or their
      behalf has, directly or indirectly, made any offers or sales of any security
      or
      solicited any offers to buy any security, under circumstances that would cause
      this offering of the Shares to be integrated with prior offerings by the Company
      for purposes of the Securities Act or any applicable shareholder approval
      provisions, including, without limitation, under the rules and regulations
      of
      any exchange or automated quotation system on which any of the securities of
      the
      Company are listed or designated. 

     

    (v) Listing
      and Maintenance Requirements.
      Except
      as disclosed in Schedule
      3.1(v),
      the
      Company has been in compliance with all listing and maintenance requirements
      of
      each applicable Trading Market and the Tel Aviv Stock Exchange. Except as
      disclosed in Schedule
      3.1(v),
      the
      Company has not, in the 12 months preceding the date hereof, received notice
      from any Trading Market on which the Ordinary Shares or ADRs representing
      Ordinary Shares are or have been listed or quoted, or the Tel Aviv Stock
      Exchange to the effect that the Company is not in compliance with the listing
      or
      maintenance requirements of such market. Except as disclosed in Schedule
      3.1(v),
      the
      Company is, and has no reason to believe that it will not in the foreseeable
      future continue to be, in compliance with all such listing and maintenance
      requirements.

     

    (w) Sarbanes-Oxley;
      Internal Accounting Controls.
      The
      Company is in material compliance with all provisions of the Sarbanes-Oxley
      Act
      of 2002 which are applicable to it as of the date hereof. The
      Company has disclosure controls and procedures (as defined in Rule 13a-14 under
      the Exchange Act) that are designed to ensure that material information relating
      to the Company is made known to the Company’s principal executive officer and
      the Company’s principal financial officer or persons performing similar
      functions.

     

    (x) Disclosure.
      The
      Company confirms that, neither the Company nor any other Person acting on its
      behalf has provided any of the Purchasers or their agents or counsel with any
      information, other than information relating to the Offering, that constitutes
      or might constitute material, non-public information. The Company understands
      and confirms that the Purchasers will rely on the foregoing representations
      and
      covenants in effecting transactions in securities of the Company. All disclosure
      provided to the Purchasers regarding the Company, its business and the
      transactions contemplated hereby, including the Disclosure Documents and the
      Exhibits to this Agreement, furnished by or on behalf of the Company with
      respect to the representations and warranties made herein are true and correct
      with respect to such representations and warranties and do not contain any
      untrue statement of a material fact or omit to state any material fact necessary
      in order to make the statements made therein, in light of the circumstances
      under which they were made, not misleading. The Company acknowledges and agrees
      that no Purchaser makes or has made any representations or warranties with
      respect to the transaction contemplated hereby other than those specifically
      set
      forth in Section 3.2 hereof.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    (y) Independent
      Public Accountants.
      The
      Company confirms that Kesselman
      & Kesselman, Israeli certified public accounts and a member of
      PricewaterhouseCoopers International Limited, are independent public accountants
      as required by the Securities Act and the rules and regulations promulgated
      thereunder.

     

    3.2 Representations
      and Warranties of the Purchasers. Each
      Purchaser hereby, for itself and for no other Purchaser, represents and warrants
      as of the date hereof and as of the Closing Date to the Company as follows:
      

     

    (a) Organization;
      Authority. Such
      Purchaser is an entity duly organized, validly existing and in good standing
      under the laws of the jurisdiction of its organization with full right,
      corporate, limited liability or partnership power and authority to enter into
      and to consummate the transactions contemplated by the Transaction Documents
      and
      otherwise to carry out its obligations thereunder. The execution, delivery
      and
      performance by such Purchaser of the transactions contemplated by this Agreement
      have been duly authorized by all necessary corporate or similar action on the
      part of such Purchaser. Each Transaction Document to which it is a party has
      been duly executed by such Purchaser, and when delivered by such Purchaser
      in
      accordance with the terms hereof, will constitute the valid and legally binding
      obligation of such Purchaser, enforceable against it in accordance with its
      terms except (i) as limited by applicable bankruptcy, insolvency,
      reorganization, moratorium and other laws of general application affecting
      enforcement of creditors’ rights generally and (ii) as limited by laws
      relating to the availability of specific performance, injunctive relief or
      other
      equitable remedies, and (iii) with respect to the indemnification
      provisions set forth in the Registration Rights Agreement, as limited by public
      policy.

     

    (b) General
      Solicitation. Such
      Purchaser is not purchasing the Securities as a result of any advertisement,
      article, notice or other communication regarding the Securities published in
      any
      newspaper, magazine or similar media or broadcast over television or radio
      or
      presented at any seminar or any other general solicitation or general
      advertisement. 

     

    (c) No
      Public Sale or Distribution. Such
      Purchaser is acquiring the Securities for its own account and not with a view
      towards, or for resale in connection with, the public sale or distribution
      thereof, except pursuant to sales registered or exempted under the Securities
      Act; provided,
      however,
      that by
      making the representations herein, such Purchaser does not agree to hold any
      of
      the Securities for any minimum or other specific term and reserves the right
      to
      dispose of the Securities at any time in accordance with or pursuant to a
      registration statement or an exemption under the Securities Act. Such Purchaser
      is acquiring the Securities hereunder in the ordinary course of its business.
      Such Purchaser does not have any agreement or understanding, directly or
      indirectly, with any Person to distribute any of the Securities. 

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    (d) Accredited
      Investor Status. If
      Purchaser is purchasing Securities pursuant to the exemption from the
      registration requirements of United States federal securities laws provided
      by
      Regulation D promulgated under the Securities Act, such Purchaser is an
“accredited investor” as that term is defined in Rule 501(a) of
      Regulation D.

     

    (e) Regulation
      S.
      If
      Purchaser is purchasing Securities pursuant to the exemption from the
      registration requirements of United States federal securities laws provided
      by
      Regulation S promulgated under the Securities Act, such Purchaser:

     

    (i) is
      not a
      U.S. person (as defined in Regulation S) and is not acquiring the Securities
      for
      the account or benefit of any U.S. person; and

     

    (ii) agrees
      to
      resell such Securities only in accordance with the provisions of Regulation
      S,
      pursuant to registration under the Securities Act, or pursuant to an available
      exemption from registration; and agrees not to engage in hedging transactions
      with regard to such Securities unless in compliance with the Securities
      Act.

     

    (f) Reliance
      on Exemptions. Such
      Purchaser understands that the Securities are being offered and sold to it
      in
      reliance on specific exemptions from the registration requirements of United
      States federal and state securities laws and that the Company is relying in
      part
      upon the truth and accuracy of, and such Purchaser’s compliance with, the
      representations, warranties, agreements, acknowledgments and understandings
      of
      such Purchaser set forth herein and on the signature page hereto in order to
      determine the availability of such exemptions and the eligibility of such
      Purchaser to acquire the Securities. 

     

    (g) Information;
      Confidentiality. Such
      Purchaser and its advisors, if any, have been furnished with all publicly
      available materials relating to the business, finances and operations of the
      Company and such other publicly available materials relating to the offer and
      sale of the Securities as have been requested by such Purchaser. The Purchaser
      acknowledges and understands that the fact that the Company is seeking to effect
      the private placement of the Securities is itself material, non-public
      information, and accordingly,
      the Purchaser agrees not to engage in disclosure
      of such information or use of such information by the Purchaser or anyone
      receiving such information from the Purchaser in connection with the purchase,
      sale or trade of the Company’s securities (other than use by the Purchaser in
      acquiring the Securities), or any hedging, derivative or similar transactions
      or
      activities involving the Company’s securities. Such Purchaser and its advisors,
      if any, have been afforded the opportunity to ask questions of the Company.
      Neither such inquiries nor any other due diligence investigations conducted
      by
      such Purchaser or its advisors, if any, or its representatives shall modify,
      amend or affect such Purchaser’s right to rely on the Company’s representations
      and warranties contained herein. Such Purchaser understands that its investment
      in the Securities involves a high degree of risk. Such Purchaser has sought
      such
      accounting, legal and tax advice as it has considered necessary to make an
      informed investment decision with respect to its acquisition of the Securities.
      

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    (h) No
      Governmental Review. Such
      Purchaser understands that no United States federal or state agency or any
      other
      government or governmental agency has passed on or made any recommendation
      or
      endorsement of the Securities or the fairness or suitability of the investment
      in the Securities nor have such authorities passed upon or endorsed the merits
      of the offering of the Securities. 

     

    (i) Experience
      of Such Purchaser. Such
      Purchaser, either alone or together with its representatives, has such
      knowledge, sophistication and experience in business and financial matters,
      including investing in biotechnology companies, so as to be capable of
      evaluating the merits and risks of the prospective investment in the Securities,
      and has so evaluated the merits and risks of such investment. Such Purchaser
      is
      able to bear the economic risk of an investment in the Securities and, at the
      present time, is able to afford a complete loss of such investment.

     

    (j) Sales;
      Short Selling. From
      and
      after the date that the Purchaser receives any information about the existence
      of the Offering, and through the Closing Date, the Purchaser has not and shall
      not, directly or indirectly, sell Ordinary Shares in any open Trading Market
      or
      elsewhere, and has not and shall not directly or indirectly, through related
      parties, affiliates or otherwise sell “short” or “short against the box” (as
      those terms are generally understood) any equity security of the
      Company.

     

    (k) Information
      Regarding Purchaser.
      Purchaser has provided the Company with true, complete, and correct information
      regarding all applicable items set forth on the signature page to this
      Agreement.

     

    The
      Company acknowledges and agrees that each Purchaser does not make or has not
      made any representations or warranties with respect to the transactions
      contemplated hereby other than those specifically set forth in this
      Section 3.2. 

     

    ARTICLE
      IV.

    OTHER
      AGREEMENTS OF THE PARTIES 

     

    4.1 Transfer
      Restrictions. The
      Securities may only be disposed of in compliance with U.S. state and federal
      securities laws. In connection with any transfer of Securities other than (i)
      pursuant to an effective registration statement, (ii) to the Company, or (iii)
      to an Affiliate of a Purchaser, the Company may require the transferor thereof
      to provide to the Company an opinion of counsel selected by the transferor,
      the
      form and substance of which opinion shall be reasonably satisfactory to the
      Company, to the effect that such transfer does not require registration of
      such
      transferred Securities under the Securities Act. As a condition of transfer,
      any
      such transferee shall agree in writing to be bound by the terms of this
      Agreement and shall have the rights of a Purchaser under this Agreement and
      the
      Registration Rights Agreement. 

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    4.2 Furnishing
      of Information. During
      the Effectiveness Period (as such term is defined in the Registration Rights
      Agreement), the Company covenants to use its commercially reasonable efforts
      to
      timely file (or obtain extensions in respect thereof and file within the
      applicable grace period) all reports required to be filed by the Company after
      the date hereof pursuant to the Exchange Act. During the Effectiveness Period,
      the Company further covenants to use its commercially reasonable efforts to
      take
      such further action as any Purchaser may reasonably request, all to the extent
      required from time to time to enable such Person to sell such Securities without
      registration under the Securities Act within the limitation of the exemptions
      provided by Rule 144 under the Securities Act. 

     

    4.3 Integration.
      The
      Company shall not sell, offer for sale or solicit offers to buy or otherwise
      negotiate in respect of any security (as defined in Section 2 of the
      Securities Act) that would be integrated with the offer or sale of the
      Securities in a manner that would require the registration under the Securities
      Act of the sale of the Securities to the Purchasers or that would be integrated
      with the offer or sale of the Securities for purposes of the rules and
      regulations of any Trading Market. 

     

    4.4 Securities
      Laws Disclosure; Publicity.
      The
      Company shall, by 8:30 a.m., New York City time, on the Business Day following
      the Closing Date, issue a press release to be disseminated in the public domain
      describing the terms of the transactions contemplated by the Transaction
      Documents. Notwithstanding the foregoing, the Company shall not publicly
      disclose the name of any Purchaser, or include the name of any Purchaser in
      any
      filing with the Commission or any regulatory agency or Trading Market, without
      the prior written consent of such Purchaser, except (i) as required by
      federal securities law or the Commission in connection with the registration
      statement contemplated by the Registration Rights Agreement and (ii) to the
      extent such disclosure is required by law or Trading Market regulations, in
      which case the Company shall provide the Purchasers with prior notice of such
      disclosure permitted under subclause (i) or (ii). 

     

    4.5 Shareholders
      Rights Plan. No
      claim
      will be made or enforced by the Company or any other Person that any Purchaser
      is an “Acquiring Person” under any shareholders rights plan or similar plan or
      arrangement in effect or hereafter adopted by the Company, or that any Purchaser
      could be deemed to trigger the provisions of any such plan or arrangement,
      in
      each case solely by virtue of receiving Securities under the Transaction
      Documents or under any other agreement between the Company and the Purchasers.
      

     

    4.6 Reservation
      of Ordinary Shares. As
      of the
      date hereof, the Company has reserved and the Company shall continue to reserve
      and keep available at all times, free of preemptive rights, a sufficient number
      of Ordinary Shares for the purpose of enabling the Company to issue Shares
      pursuant to this Agreement.

     

    4.7 Listing
      of Ordinary Shares; ADR Facility. The
      Company hereby agrees to use commercially reasonable efforts to maintain the
      listing of ADRs representing Ordinary Shares on the Nasdaq Stock Market. The
      Company further agrees, if the Company applies to have ADRs representing
      Ordinary Shares traded on any other Trading Market, it will include in such
      application the Shares, and will take such other action as is necessary or
      desirable in the opinion of the Purchasers to cause the Shares to be listed
      on
      such other Trading Market as promptly as possible. The Company will take all
      action reasonably necessary to continue the listing and trading of ADRs
      representing its Ordinary Shares on a Trading Market and will comply in all
      respects with the Company’s reporting, filing and other obligations under the
      bylaws or rules of the Trading Market. The Purchasers acknowledge that the
      Shares will not be eligible for deposit into the American Depositary Receipt
      trading facility maintained by the Company at The Bank of New York until the
      Effective Date. 

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    4.8 Subsequent
      Financings Prior to Effective Date. From
      the
      date hereof until 90 days after the Effective Date, other than as contemplated
      by this Agreement, neither the Company nor either of the Subsidiaries shall
      issue or sell any Ordinary Shares, excluding the issuance of securities issued
      upon the exercise of currently outstanding options and warrants.

     

    4.9 Non-Public
      Information.
      The
      Company covenants and agrees that neither it nor any other Person acting on
      its
      behalf will provide any Purchaser or its agents or counsel with any information
      that the Company believes constitutes material non-public information, unless
      prior thereto such Purchaser shall have executed a written agreement regarding
      the confidentiality and use of such information. The Company understands and
      confirms that each Purchaser shall be relying on the foregoing representations
      in effecting transactions in securities of the Company.

     

    4.10 Delivery
      of ADRs. On
      the
      Effective Date, the Company shall deliver the Shares to The Bank of New York,
      and shall cause The Bank of New York to immediately deliver to each Purchaser
      ADRs representing a number of Shares equal to such Purchaser’s Subscription
      Amount divided by the Per Share Purchase Price, registered in the name of such
      Purchaser.

     

    ARTICLE
      V.

    MISCELLANEOUS
      

     

    5.1 Fees
      and Expenses. Except
      as
      set forth in Section 3.1(p) and in the Placement Agent Agreement, each party
      shall pay the fees and expenses of its advisers, counsel, accountants and other
      experts, if any, and all other expenses incurred by such party incident to
      the
      negotiation, preparation, execution, delivery and performance of this Agreement.
      The Company shall pay all stamp and other taxes and duties levied in connection
      with the sale of the Securities. 

     

    5.2 Entire
      Agreement. The
      Transaction Documents, together with the exhibits and schedules thereto, the
      Disclosure Documents and the Placement Agent Agreement, contain the entire
      understanding of the parties with respect to the subject matter hereof and
      supersede all prior agreements and understandings, oral or written, with respect
      to such matters, which the parties acknowledge have been merged into such
      documents, exhibits and schedules. 

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    5.4 Notices.
      Any
      and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earliest of (a) the date of transmission, if such notice or
      communication is delivered via facsimile at the facsimile number specified
      on
      the signature pages attached hereto prior to 6:30 p.m. (New York City time)
      on a Trading Day, (b) the next Trading Day after the date of transmission,
      if such notice or communication is delivered via facsimile at the facsimile
      number on the signature pages attached hereto on a day that is not a Trading
      Day
      or later than 6:30 p.m. (New York City time) on any Trading Day,
      (c) the Trading Day following the date of mailing, if sent by U.S.
      nationally recognized overnight courier service, or (d) upon actual receipt
      by the party to whom such notice is required to be given. The address for such
      notices and communications shall be as set forth on the signature pages attached
      hereto. 

     

    5.5 Amendments;
      Waivers. No
      provision of this Agreement may be waived or amended except in a written
      instrument signed, in the case of an amendment, by the Company and each
      Purchaser or, in the case of a waiver, by the party against whom enforcement
      of
      any such waiver is sought. No waiver of any default with respect to any
      provision, condition or requirement of this Agreement shall be deemed to be
      a
      continuing waiver in the future or a waiver of any subsequent default or a
      waiver of any other provision, condition or requirement hereof, nor shall any
      delay or omission of either party to exercise any right hereunder in any manner
      impair the exercise of any such right. 

     

    5.6 Construction.
      The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof. The language used in this Agreement will be deemed to be the language
      chosen by the parties to express their mutual intent, and no rules of strict
      construction will be applied against any party. 

     

    5.7 Successors
      and Assigns. This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns. The Company may not assign this
      Agreement or any rights or obligations hereunder without the prior written
      consent of each Purchaser. Any Purchaser may assign any or all of its rights
      under this Agreement to any Person, provided such transferee agrees in writing
      to be bound, with respect to the transferred Securities, by the provisions
      hereof that apply to the “Purchasers.” 

     

    5.8 No
      Third-Party Beneficiaries. This
      Agreement is intended for the benefit of the parties hereto and their respective
      successors and permitted assigns and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person, except as otherwise set
      forth
      in Section 4.1. 

     

    5.9 Governing
      Law. All
      questions concerning the construction, validity, enforcement and interpretation
      of the Transaction Documents shall be governed by and construed and enforced
      in
      accordance with the internal laws of the State of New York, without regard
      to
      the principles of conflicts of law thereof. Each party agrees that all legal
      proceedings concerning the interpretations, enforcement and defense of the
      transactions contemplated by this Agreement and any other Transaction Documents
      (whether brought against a party hereto or its respective affiliates, directors,
      officers, shareholders, employees or agents) shall be commenced exclusively
      in
      the state or federal courts sitting in the City of New York. Each party hereto
      hereby irrevocably submits to the jurisdiction of the state and federal courts
      sitting in the City of New York, New York, exclusive of all other jurisdictions,
      for the adjudication of any dispute hereunder or in connection herewith or
      with
      any transaction contemplated hereby or discussed herein (including with respect
      to the enforcement of any of the Transaction Documents), and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is improper. If either party shall commence
      an
      action or proceeding to enforce any provisions of a Transaction Document, then
      the prevailing party in such action or proceeding shall be reimbursed by the
      other party for its attorneys fees and other costs and expenses incurred with
      the investigation, preparation and prosecution of such action or
      proceeding.

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    5.10 Survival.
      The
      representations, warranties, agreements and covenants contained herein shall
      survive the Closing and delivery of the Shares. 

     

    5.11 Execution.
      This
      Agreement may be executed in two or more counterparts, all of which when taken
      together shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered to
      the
      other party, it being understood that both parties need not sign the same
      counterpart. In the event that any signature is delivered by facsimile
      transmission, such signature shall create a valid and binding obligation of
      the
      party executing (or on whose behalf such signature is executed) with the same
      force and effect as if such facsimile signature page were an original thereof.
      

     

    5.12 Severability.
      If
      any
      provision of this Agreement is held to be invalid or unenforceable in any
      respect, the validity and enforceability of the remaining terms and provisions
      of this Agreement shall not in any way be affected or impaired thereby and
      the
      parties will attempt to agree upon a valid and enforceable provision that is
      a
      reasonable substitute therefor, and upon so agreeing, shall incorporate such
      substitute provision in this Agreement. 

     

    5.13 Replacement
      of Shares. If
      any
      certificate or instrument evidencing any Securities is mutilated, lost, stolen
      or destroyed, the Company shall issue or cause to be issued in exchange and
      substitution for and upon cancellation thereof, or in lieu of and substitution
      therefor, a new certificate or instrument, but only upon receipt of evidence
      reasonably satisfactory to the Company of such loss, theft or destruction and
      customary and reasonable indemnity, if requested. 

     

    5.14 Independent
      Nature of Purchasers’ Obligations and Rights. The
      obligations of each Purchaser under any Transaction Document are several and
      not
      joint with the obligations of any other Purchaser, and no Purchaser shall be
      responsible in any way for the performance of the obligations of any other
      Purchaser under any Transaction Document. Nothing contained herein or in any
      Transaction Document, and no action taken by any Purchaser pursuant thereto,
      shall be deemed to constitute the Purchasers as a partnership, an association,
      a
      joint venture or any other kind of entity, or create a presumption that the
      Purchasers are in any way acting in concert or as a group with respect to such
      obligations or the transactions contemplated by the Transaction Document. Each
      Purchaser shall be entitled to independently protect and enforce its rights,
      including without limitation, the rights arising out of this Agreement or out
      of
      the other Transaction Documents, and it shall not be necessary for any other
      Purchaser to be joined as an additional party in any proceeding for such
      purpose. Each Purchaser has been represented by its own separate legal counsel
      in their review and negotiation of the Transaction Documents. 

     

    (Signature
      Page Follows)

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
      Agreement to be duly executed by their respective authorized signatories as
      of
      the date first indicated above. 

     

    
      	
              XTL
                Biopharmaceuticals Ltd.

               

              By:
                 /s/
                Ron Bentsur 

              
                

              

              Name: Ron
                Bentsur

              Title: Chief
                Executive Officer

            	
              Address
                for Notice:

              711
                Executive Blvd., Suite Q

              Valley
                Cottage, NY 10989

              Attn:
                Ron Bentsur

              Tel:
                (845) 267-0707

              Fax:
                (845) 267-0926

            
	 	 
	 	
              With
                copy to (which shall not constitute notice):

            
	 	 
	 	
              Alston
                & Bird LLP

              90
                Park Avenue

              New
                York, New York 10016

              Attn:
                Mark F. McElreath

              Tel:
                (212) 210-9400

              Fax:
                (212) 210-9444

            

    

     

    (Signature
      Page Continues)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              EYAL
                CARMON

            	
               

               

            	
               

              By:

            	
               

              /s/
                Eyal Carmon 

                

              

              Name:  
                Eyal Carmon

              Title:    

            

    

     

    Date:
       October
      25,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	
               

            	
              TOTAL
                

              PURCHASE
                PRICE

            	 
	
              900,000

            	 	
              $

            	
              .135

            	 	
              $

            	
              121,500.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              M.D.K
                INC.

               

               

            	
               

               

            	
               

              By:

            	
               

              /s/
                Wayne Rothbaum 
                

              

              Name:  
                Wayne Rothbaum

              Title:    

            

    

     

    Date:
      October
      27,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              750,000

            	 	
              $

            	
              0.135

            	 	
              $

            	
              101,250.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              MANIV
                (BRUNSTEIN) BUSINESS PROMOTION AND DEVLOPMENT LTD.

            	
               

               

            	
               

              By:

            	
               

              /s/
                Brunstein 
                

              

              Name:  
                

              Title:    President
                and CEO

            

    

     

    Date:
      October
      28,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              750,000

            	 	
              $

            	
              0.135

            	 	
              $

            	
              101,250.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              THE
                ISRAEL AIRCRAFT INDUSTRIES WORKER PROVIDENT FUND

            	
               

               

            	
               

              By:

            	
               

              /s/
                Yael Aroshas 
                

              

              Name:  
                Yasl Aroshas

              Title:    Investment
                Manager

            

    

     

    Date:
      October
      25,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              7,500,000

            	 	
              $

            	
              0.135

            	 	
              $

            	
              1,012,500.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              PUNK
                ZIEGEL & CO.

            	
               

               

            	
               

              By:

            	
               

              /s/
                Ira Z. Leiderman 
                

              

              Name:  
                Ira Z. Leiderman

              Title:    Managing
                Director

            

    

     

    Date:
      October
      25,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              3,703,703

            	 	
              $

            	
              .135

            	 	
              $

            	
              500,000.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              MEITAV
                UNDERWRITING LTD.

            	
               

               

            	
               

              By:

            	
               

              /s/
                Yonatan Malca 
                

              

              Name:  
                Yonatan Malca

              Title:    CEO

            
	 	 	 	 
	 	 	
               

              By:

            	
               

              /s/
                Ben Amrani 
                

              

              Name:  
                Ben Amrani

              Title:    Nostro
                Manager

            

    

     

    Date:
      October
      25,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              1,111,111

            	 	
              $

            	
              0.135

            	 	
              $

            	
              150,000.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              MEITAV
                PENSION LTD.

            	
               

               

            	
               

              By:

            	
               

              /s/
                Ari Berkowitz 
                

              

              Name:  
                Ari Berkowitz

              Title:    

            

    

     

    Date:
      October
      25,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              22,222

            	 	
              $

            	
              0.135

            	 	
              $

            	
              3,000.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              MEITAV
                MISHAN LTD.

            	
               

               

            	
               

              By:

            	
               

              /s/
                Avi Berkowitz 
                
Name:  
                Avi Berkowitz

              Title:    

            

    

     

    Date:
      Ocotober
      25,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              200,000

            	 	
              $

            	
              0.135

            	 	
              $

            	
              27,000

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              MEITAV
                GEMEL LTD.

            	
               

               

            	
               

              By:

            	
               

              /s/
                Avi Berkowitz 
                

              

              Name:  
                Avi Berkowitz

              Title:    

            

    

     

    Date:
      October
      25,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              1,629,630

            	 	
              $

            	
              0.135

            	 	
              $

            	
              220,000

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              GADI
                BEN ARI

            	
               

               

            	
               

              By:

            	
               

              /s/
                Gadi Ben Ari 
                

              

              Name:  
                Gadi Ben Ari

              Title:    

            

    

     

    Date:
      October
      25,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              600,000

            	 	
              $

            	
              0.135

            	 	
              $

            	
              81,000.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              SONOSTAR
                CAPITAL PARTNERS, LLC

            	
               

               

            	
               

              By:

            	
               

              /s/
                Gregory Kiernan 
                

              

              Name:  
                Gregory Kiernan

              Title:    Managing
                Member

            

    

     

    Date:
      October
      19,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              1,481,481

            	 	
              $

            	
              0.135

            	 	
              $

            	
              200,000.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              GREGORY
                KIERNAN

            	
               

               

            	
               

              By:

            	
               

              /s/
                Gregory Kiernan 
                

              

              Name:  
                Gregory Kiernan

              Title:    

            

    

     

    Date:
      October
      19,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              1,851,852

            	 	
              $

            	
              0.135

            	 	
              $

            	
              250,000.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              DAVID
                TUBOUL

            	
               

               

            	
               

              By:

            	
               

              /s/
                David TuBoul 
                

              

              Name:  
                David TuBoul

              Title:    

            

    

     

    Date:
      October
      25,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              750,000

            	 	
              $

            	
              0.135

            	 	
              $

            	
              101,250.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              QUOGUE
                CAPITAL LLC

            	
               

               

            	
               

              By:

            	
               

              /s/
                Wayne Rothbaum 
                

              

              Name:  
                Wayne Rothbaum

              Title:    President

            

    

     

    Date:
      October
      23,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              9,250,000

            	 	
              $

            	
              0.135

            	 	
              $

            	
              1,248,750.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              PERCEPTIVE
                LIFE SCIENCES MASTER FUND LTD.

            	
               

               

            	
               

              By:

            	
               

              /s/
                James Mannix 
                

              

              Name:  
                James Mannix

              Title:    Chief
                Operating Officer

            

    

     

    Date:
      October
      22,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
            	 	 	
              [$ 
]

            	 	
              $

            	
              1,250,000

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              DELAWARE
                CHARTER GUARANTEE AND TRUST

            	
               

               

            	
               

              By:

            	
               

              /s/
                Steven Oliveira 
                

              

              Name:  
                Steven Oliveira

              Title:    Trustee

            

    

     

    Date:
      October
      22,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              3,750,000

            	 	
              $

            	
              .135

            	 	
              $

            	
              506,250.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              TMW
                CAPITAL, LLC

            	
               

               

            	
               

              By:

            	
               

              /s/
                Todd Wider 
                

              

              Name:  
                Todd Wider

              Title:    President

            

    

     

    Date:
      October
      22,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              2,962,963

            	 	
              $

            	
              .135

            	 	
              $

            	
              400,000.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              VERSANT
                CAPITAL MANAGEMENT LLC

            	
               

               

            	
               

              By:

            	
               

              /s/
                Herriot Tabuteau 
                

              

              Name:  
                Herriot Tabuteau

              Title:    Managing
                Member

            

    

     

    Date:
      October
      24,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              3,703,704

            	 	
              $

            	
              0.135

            	 	
              $

            	
              500,000.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              CAT
                TRAIL CAPITAL, LLC

            	
               

               

            	
               

              By:

            	
               

              /s/
                David Dakkar 
                

              

              Name:  
                David Dakkar

              Title:    Managing
                Partner

            

    

     

    Date:
      October
      22,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
            	 	 	
              [$  
                 ]

            	 	
              $

            	
              500,000.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              IROQUOIS
                MASTER FUND LTD.

            	
               

               

            	
               

              By:

            	
               

              /s/
                Joshua Silverman 
                

              

              Name:  
                Joshua Silverman

              Title:    Authorized
                Signatory

            

    

     

    Date:
      October
      23,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              1,111,111

            	 	
              $

            	
              .135

            	 	
              $

            	
              150,000.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              JAMES
                F. OLIVIERO

            	
               

               

            	
               

              By:

            	
               

              /s/
                James F. Oliviero 
                
Name:  
                James F. Oliviero

              Title:    

            

    

     

    Date:
      October
      19,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              55,000

            	 	
              $

            	
              .135

            	 	
              $

            	
              7,425.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              BRIAN
                S. WATERMAN

            	
               

               

            	
               

              By:

            	
               

              /s/
                Brian S. Waterman 
                

              

              Name:  
                Brian S. Waterman

              Title:    

            

    

     

    Date:
      October
      19,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              1,050,000

            	 	
              $

            	
              .135

            	 	
              $

            	
              141,750.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              JAMES
                D. KUHN

            	
               

               

            	
               

              By:

            	
               

              /s/
                James D. Kuhn 
                

              

              Name:  
                James D. Kuhn

              Title:    President

            

    

     

    Date:
      October
      19,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              2,500,000

            	 	
              $

            	
              .135

            	 	
              $

            	
              337,500.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              PROMED
                OFFSHORE FUND, LTD.

            	
               

               

            	
               

              By:

            	
               

              /s/
                Barry Kurokawa 
                

              

              Name:  
                Barry Kurokawa

              Title:    Managing
                Director

            

    

     

    Date:
      October
      19,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              525,000

            	 	
              $

            	
              .135

            	 	
              $

            	
              70,875.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              PROMED
                PARTNERS, LP

            	
               

               

            	
               

              By:

            	
               

              /s/
                Barry Kurokawa 
                

              

              Name:  
                Barry Kurokawa

              Title:    Managing
                Director

            

    

     

    Date:
      October
      19,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              3,179,000

            	 	
              $

            	
              .135

            	 	
              $

            	
              429,165.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              SCO
                CAPITAL PARTNERS, LP

            	
               

               

            	
               

              By:

            	
               

              /s/
                Steven H. Rouhandeh 
                

              

              Name: Steven
                H. Rouhandeh

              Title:   Managing
                Member

            

    

     

    Date:
      October
      22,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              3,703,703

            	 	
              $

            	
              .135

            	 	
              $

            	
              500,000.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              SENVEST
                ISRAEL PARTNERS LP

            	
               

               

            	
               

              By:

            	
               

              /s/
                Gregory Malikonis 
                

              

              Name:  Gregory
                Malikonis

              Title:    Vice
                President

            

    

     

    Date:
      October
      19,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
            	 	 	
              [$ 
]

            	 	
              $

            	
              150,000.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              KENNETH
                HOBERMAN

            	
               

               

            	
               

              By:

            	
               

              /s/
                Kenneth Hoberman 

                

              

              Name:  
                Kenneth Hoberman

              Title:    

            

    

     

    Date:
      October
      19,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
            	 	 	
              [$ 
]

            	 	
              $

            	
              75,000.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              CLEARWATER
                OFFSHORE FUND, LTD.

            	
               

               

            	
               

              By:

            	
               

              /s/
                H. Heye 
                

              

              Name: H.
                Heye

              Title:   Trading
                Manager

            

    

     

    Date:
      October
      22,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              1,851,850

            	 	
              $

            	
              0.135

            	 	
              $

            	
              249,999.75

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              CLEARWATER
                FUND I, LP

            	
               

               

            	
               

              By:

            	
               

              /s/
                H. Heye 
                

              

              Name: 
                H. Heye

              Title:    Managing
                Member

            

    

     

    Date:
      October
      22,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
              1,851,850

            	 	
              $

            	
              0.135

            	 	
              $

            	
              249,999.75

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT] 

     

    
      	
              SENVEST
                MASTER FUND LP

            	
               

               

            	
               

              By:

            	
               

              /s/
                George Malikonis 
                

              

              Name:  
                George Malikonis

              Title:    
                Vice President

            

    

     

    Date:
      October
      19,
      2007

     

    
      	
              NUMBER
                OF ORDINARY SHARES SUBSCRIBED FOR

            	 	
               

              PRICE
                PER SHARE

            	 	
              TOTAL
                PURCHASE PRICE

            	 
	
            	 	 	
              [$  
                 ]

            	 	
              $

            	
              150,000.00

            	 

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      above-signed Purchaser hereby provides the following information to the
      Company:

     

    1. Please
      provide the following information regarding the Purchaser:

     

    
      	
              Purchaser
                Name and Address:

               

            
	
              ______________________________________________

               

              ______________________________________________

               

              ______________________________________________

            
	
              Telephone:
                (    ) ______-________

               

              Facsimile:
                (    ) ______-_________

               

              Email:
                _______________________

               

              Tax
                ID #:_____________________

            

    

     

    2. If
      different from the information provided in Item 1 above, please provide the
      exact name that the Purchaser’s Shares are to be registered in (this is the name
      that will appear on the share certificate(s)) (the “Registered
      Holder”).
      The
      Purchaser may use a nominee name if appropriate:

     

    
      	
              Registered
                Holder of the Shares Name and Address:

               

            
	
              ______________________________________________

               

              ______________________________________________

               

              ______________________________________________

               

            
	
              Facsimile:
                (    )
                ______-_________

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Please
      describe the relationship between the Purchaser of the Shares and the Registered
      Holder of the Shares listed in response to Item 2 above, if
      different:

     

    
      

    

     

    
      
 

      

    

     

    
      

    

     

    4. If
      different from the information provided in Item 1 above, please provide the
      mailing address of the Registered Holder of the Shares listed in response to
      Item 2 above:

     

    
      
        

      

       

      
        
 

        

      

       

      
        
 

    

    5. If
      different from the information provided above, please provide the number of
      Ordinary Shares beneficially owned (as determined in accordance with SEC Rule
      13d-3 under the Exchange Act) by the Purchaser immediately after Closing.
      Explain the nature of such beneficial ownership, including Ordinary Shares
      not
      held of record by the Purchaser. Disclose the details of any rights to acquire
      Ordinary Shares.

     

    
      
        

      

       

      
        
 

        

      

       

      
        

      

       

      6. Describe
        any position, office or other material relationship within the past three
        years
        that the Purchaser has, or has had, with the Company or its Affiliates other
        than as disclosed in the Registration Statement? If none, please state “Not
        Applicable.”

    

     

    
      
        

      

       

      
        
 

        

      

       

      
        
 

    

    Please
      note that it is the Purchaser’s obligation to advise the Company promptly if any
      of the foregoing information changes during the effectiveness of the
      Registration Statement (except due to sales of Ordinary Shares pursuant
      thereto).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

     

    Registration
      Rights Agreement

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Exhibit
      B

     

    Form
      of Opinion of Kantor & Co.

    

    1. The
      Company is a corporation, validly existing and in good standing under the laws
      of the State of Israel, and
      has
      the
      corporate power and authority to carry on its business and to own, lease and
      operate its properties and assets as described in the Disclosure Documents.
      Except for the Subsidiaries, the Company does not have any subsidiaries and
      does
      not own more than fifty percent (50%) of the outstanding capital stock of or
      control any other business entity.

     

    2. The
      Company has the corporate power and authority to enter into and perform its
      obligations under the Transaction Documents and to issue the Shares. The
      execution and delivery of the Transaction Documents by the Company and the
      consummation by it of the transactions contemplated thereby have been duly
      authorized by all necessary corporate action of the Company.

     

    3. The
      Transaction Documents have been duly executed and delivered by the
      Company.

     

    4. The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated thereby,
      including, without limitation, the issuance of the Shares, do not and will
      not
      result in a violation of the Company’s Memorandum and Articles of Organization
      or bylaws.

     

    5. The
      Company has the authorized capitalization as set forth in the Disclosure
      Documents. The issuance of the Shares by the Company in accordance with the
      Agreement is exempt from registration under the Securities Act of 1933, as
      amended. When so issued, when certificates representing such Shares have been
      duly executed, countersigned, registered and delivered in accordance with the
      Agreement, upon payment of the consideration therefor provided therein, the
      Shares will be duly and validly authorized and issued, fully paid and
      nonassessable, free of any liens or encumbrances, or preemptive or similar
      rights, contained in the Company’s Memorandum and Articles of Organization or
      bylaws or any other instrument known to us and will conform to the description
      thereof contained in the Disclosure Documents.

     

    Form
      of Opinion of Alston & Bird LLP

     

    1. The
      Company is
      duly
      qualified to do business and is in good standing as a foreign corporation in
      all
      U.S. jurisdictions in which the character of the property owned or leased or
      the
      nature of the business transacted by it makes qualification necessary, except
      where the failure to be so qualified or in good standing, as the case may be,
      would not have or reasonably be expected to result in Material Adverse Effect.
      

     

    2. The
      Subsidiaries are corporations, validly existing and in good standing under
      the
      laws of the State of Delaware, are
      duly
      qualified to do business and are in good standing as a foreign corporation
      in
      all jurisdictions in which the character of the property owned or leased or
      the
      nature of the business transacted by them makes qualification necessary, except
      where the failure to be so qualified or in good standing, as the case may be,
      would not have or reasonably be expected to result in Material Adverse Effect,
      and has
      the
      corporate power and authority to carry on their business and to own, lease
      and
      operate their properties and assets as described in the Disclosure
      Documents.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated thereby,
      including, without limitation, the issuance of the Shares, do not and will
      not
      (i) result in a violation of the Certificate of Incorporation or bylaws of
      the
      Subsidiaries; (ii) conflict with, or constitute a material default (or an event
      that with notice or lapse of time or both would become a default) under, require
      a consent under, or give to others any rights of termination, amendment,
      acceleration or cancellation of, any Material Agreement; (iii) result in a
      violation of any law, rule or regulation of the United States or the State
      of
      New York; or (iv) to our knowledge, violate any judgment, order or decree of
      any
      court or governmental agency or body having jurisdiction over the Company or
      any
      of its properties or assets.

     

    4. Except
      for the registration of the Securities under the Securities Act and such
      consents, approvals, authorizations, registrations or qualifications as may
      be
      required under applicable state securities laws in connection with the purchase
      and distribution of the Securities, no consent, approval, authorization or
      order
      of, or filing or registration with, any court, governmental agency or
      governmental body is required for the execution, delivery and performance of
      the
      Transaction Documents by the Company and the consummation by the Company of
      the
      transactions contemplated thereby. 

     

    5.
       To
      our
      knowledge, no person or entity has the right to require registration of Ordinary
      Shares or other securities of the Company because of the filing or effectiveness
      of the Registration Statement, the consummation of the transactions contemplated
      in the Transaction Documents or otherwise, except for persons and entities
      who
      have expressly waived such right or who have been given proper notice and have
      failed to exercise such right within the time or times required under the terms
      and conditions of such
      right.

     

    6. The
      statements in the Disclosure Documents (other than the financial statements
      and
      related schedules and other financial and statistical data contained therein,
      as
      to which we express no opinion) under the headings "Risk Factors,"
      "Business—Intellectual Property and Patents," "Business—Government and Industry
      Regulation," and "Business—Material Contracts" to the extent that they
      constitute summaries of matters of law or regulation or legal conclusions,
      have
      been reviewed by us and fairly summarize the matters described therein in all
      material respects.

     

    7. To
      our
      knowledge and other than as set forth in the Disclosure Documents,
      there
      are no legal or governmental proceedings pending to which the Company is a
      party
      or of which any property or asset of the Company is the subject which,
      singularly or in the aggregate, if determined adversely to the Company, would
      prevent or adversely affect the ability of the Company to perform its
      obligations under the Transaction Documents; and, to our knowledge, no such
      proceedings are threatened or contemplated by governmental authorities or
      threatened by others.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Alston
      & Bird to also confirm:

    

    We
      have
      reviewed certain corporate records and other documents of the Company and its
      subsidiaries and have participated in conferences with officers and other
      representatives of the Company, its subsidiaries, your representatives, your
      counsel and the Company’s independent public accountants at which the contents
      of the Transaction Documents and related matters were discussed. Because of
      the
      inherent limitations in the independent verification of factual matters and
      because of the inherent limitations involved in the preparation of registration
      statements under the Securities Act, we are not passing upon and do not assume
      any responsibility for, and make no representation that we have independently
      verified, the accuracy, completeness or fairness of the information and
      statements contained in the Transaction Documents. We have no reason to believe
      that on the date hereof, the Transaction Documents contained an untrue statement
      of a material fact or omitted to state any material fact required to be stated
      therein or necessary to make the statements therein not misleading or that
      the
      Transaction Documents on the date hereof included or includes any untrue
      statement of a material fact or omitted or omits to state a material fact
      necessary to make the statements therein, in the light of the circumstances
      under which they were made, not misleading (in each case, other than the
      financial statements and other financial information contained therein, as
      to
      which we express no opinion).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      3.1(e)

    

    
      	·	
              As
                of September 30, 2007, there are 55,516,243 Ordinary Shares that
                may be
                issued in the future subject to the exercise of all options and warrants
                (at exercise prices per Ordinary Share of $0.106 to $2.110) outstanding.
                

            

    

    

    
      	·	
              At
                September 30, 2007, the remaining number of options to purchase Ordinary
                Shares available for future grants under the 2001 Share Option Plan
                is
                4,917,756. 

            

    

    

    
      	·	
              In
                March 2006, the Board of Directors of the Company approved the grant
                to
                the Chairman and to a non-executive director, of options to purchase
                9,898,719 and 750,000 ordinary shares, respectively. All of such
                options
                are subject to vesting of which one third is based on service period,
                and
                the remainder is based on achievement of certain milestones linked
                to the
                Company’s valuation on the public markets. These grants are subject to
                shareholder approval. As of September 30, 2007, the Company did not
                seek
                shareholder approval, so the options had not been
                granted.

            

    

    

    
      	·	
              In
                addition, the Company may issue additional Ordinary Shares for the
                potential settlement in cash or Ordinary Shares, at the Company's
                sole
                discretion, of certain potential milestones related to the Company's
                in-licensed products:

            

    

     

    
      	 	
              ·

            	
              In
                August 2005, the Company entered into a license agreement with VivoQuest
                Inc. (“VivoQuest”) pursuant to which it acquired exclusive worldwide
                rights to VivoQuest's intellectual property and technology. The license
                covers a proprietary compound library, including VivoQuest's lead
                HCV
                compounds, that was developed through the use of Diversity Oriented
                Synthesis, or DOS, technology. The terms of the license agreement
                include
                an initial upfront license fee of approximately $941,000 that was
                paid in
                the Company's Ordinary Shares. The license agreement also provides
                for
                additional milestone payments triggered by certain regulatory and
                sales
                targets. These milestone payments total $34.6 million, $25.0 million
                of
                which will be due upon or following regulatory approval or actual
                product
                sales, and are payable in cash or Ordinary Shares at the Company's
                election. In addition, the license agreement requires that the Company
                make royalty payments on product sales. The actual number of Ordinary
                Shares that may be issued in the future at the Company's election
                is
                dependent upon the actual price of the Ordinary Shares on settlement
                date.
                Currently, as no milestones have been met and no milestone payments
                are
                payable, the actual number of Ordinary Shares to be issued, if at
                all,
                cannot be ascertained at this time.

            

    

    

    
      	 	
              ·

            	
              In
                addition, in January 2007, XTL Development, Inc. (“XTL Development”), a
                wholly-owned subsidiary, of the Company, signed an agreement with
                DOV
                Pharmaceutical, Inc. (hereinafter “DOV”) to in-license the worldwide
                rights for Bicifadine, a serotonin and norepinephrine reuptake inhibitor
                (hereinafter the “DOV Transaction”). XTL Development intends to develop
                Bicifadine for the treatment of neuropathic pain - a chronic condition
                resulting from damage to peripheral nerves. In accordance with the
                terms
                of the license agreement, XTL Development made an initial up-front
                payment
                of $7.5 million in cash. In addition, XTL Development will make milestone
                payments of up to $126.5 million, in cash and/or Ordinary Shares
                of the
                Company over the life of the license, of which up to $115 million
                will be
                due upon or after regulatory approval of the product and the remaining
                $11.5 million will be due prior to regulatory approval of the product.
                XTL
                Development is also obligated to pay royalties to DOV on net sales
                of the
                product to DOV. The actual number of Ordinary Shares that may be
                issued in
                the future at the Company's election is dependent upon the actual
                price of
                the Ordinary Shares on settlement date. Currently, as no milestones
                have
                been met and no milestone payments are payable, the actual number
                of
                Ordinary Shares to be issued, if at all, cannot be ascertained at
                this
                time.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	·	
              Also,
                the Company may issue Ordinary Shares for the potential settlement
                in cash
                or in Ordinary Shares, at the Company's sole discretion, of the
                transaction advisory fee in the form of the Stock Appreciation Rights
                that
                were issued to the intermediary in the transaction with DOV
                Pharmaceutical, Inc.:

            

    

     

    
      	 	
              ·

            	
              In
                January 2007, XTL Development committed to pay a transaction advisory
                fee
                to third party intermediaries in regards to the DOV Transaction.
                The
                transaction advisory fee was structured in the form of Stock Appreciation
                Rights (“SARs”) in the amount equivalent to (i) 3% of the Company's fully
                diluted Ordinary Shares at the close of the transaction (representing
                8,299,723 Ordinary Shares), vesting one year after the close of the
                transaction, and (ii) 7% of the Company's fully diluted Ordinary
                Shares at
                the close of the transaction (representing 19,366,019 Ordinary Shares),
                vesting following successful Phase III clinical trial results for
                Bicifadine or the acquisition of the Company. Payment of the SARs
                by XTL
                Development can be satisfied, at the Company's discretion, in cash
                and/or
                by issuance of the Company's registered Ordinary Shares. Currently,
                as the
                amount payable under the SAR is unknown (as this amount is based
                on the
                calculation of the stock appreciation on the date of exercise), the
                fact
                whether Ordinary Shares will be issued and the amounts that may be
                issued
                cannot be ascertained at this
                time.

            

    

    Schedule
      3.1(v)

    

    
      	·	
              On
                August 28, 2007, the Company announced the receipt on August 23,
                2007, of
                a NASDAQ Staff Deficiency Letter indicating that, according to the
                Company's financial statements for the six months ended June 30,
                2007, the
                Company no longer complied with the minimum $10 million shareholders'
                equity requirement for continued listing on The NASDAQ Global Market
                as
                set forth in Marketplace Rule 4450(a)(3). The Company was asked to
                respond.

            

    

    

    
      	·	
              On
                September 26, 2007,
                the
                Company announced that on September 24, 2007, the Company received
                a
                NASDAQ Staff Determination indicating that the Company failed to
                comply
                with the minimum $10 million shareholders’ equity requirement for
                continued listing on the NASDAQ Global Market as set forth in Marketplace
                Rule 4450(a)(3), and that its ADRs are, therefore, subject to delisting
                from the NASDAQ Global Market. 

            

    

    

    
      	·	
              On
                September 25, 2007, the Company requested a hearing before a NASDAQ
                Listing Qualifications Panel to review the Staff Determination. A
                hearing
                request will stay the suspension of the Company's ADRs from the NASDAQ
                Global Market pending the Panel's decision. There can be no assurance
                that
                the Panel will grant the Company's request for continued listing.
                If the
                Panel does not grant the Company’s request for continued listing, the
                Company has the option to transfer its ADR listing to the NASDAQ
                Capital
                Market, previously called the NASDAQ SmallCap Market.

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