Document:

ex101.htm

    SECURITIES
PURCHASE AGREEMENT

    

               THIS SUBSCRIPTION AGREEMENT
(this “Agreement”), is
made as of April 17, 2008, by and among Davi Skin, Inc., a Nevada corporation
(the “Company”), and
_______________(“Subscriber”).

    

               WHEREAS, the Company and the
Subscriber are executing and delivering this Agreement in reliance upon an
exemption from securities registration afforded by the provisions of Section
4(2) and/or Regulation D (“Regulation D”) as promulgated
under the Securities Act of 1933, as amended (the “1933 Act”); and

    

               WHEREAS, the parties desire
that, upon the terms and subject to the conditions contained herein, the Company
shall issue and sell to the Subscriber, and the Subscribers shall purchase, (a)
250,000 shares of Series A Preferred Stock, par value $.001 per share of the
Company, (the “Preferred
Stock”), at a purchase price of $1.00 per share, pursuant to a
Certificate of Designation to be approved by the Company and filed with the
Secretary of State of Nevada designating the rights and privileges of the
Preferred Stock, substantially in the form as annexed hereto as Exhibit
A (the “Certificate”) and (b) Series
A-1 Warrants to purchase common stock, par value $0.001 (the “Common Stock”) of the Company
(the “Warrant Shares”),
at an exercise price of $.15 per share, subject to adjustment (the “Exercise Price”), in
substantially the form as annexed hereto as Exhibit
B (the “Investor
Warrants”) (all such transactions, collectively, the “Offering”).  The
Preferred Stock, Additional Shares (as hereinafter defined), the Investor
Warrants and the Warrant Shares are collectively referred to herein as the
“Securities”;
and

    

    WHEREAS, simultaneously with
the Closing the Company is delivering a Registration Rights Agreement in the
form as annexed hereto as Exhibit
C (the “Registration
Rights Agreement”), a Stock Escrow Agreement substantially in the form as
annexed hereto as Exhibit
D (the “Escrow
Agreement”), and the Company’s principal officer is delivering an
Irrevocable Voting Proxy and Trust Agreement in the form as annexed as Exhibit
E (the “Proxy
Agreement”);

    

               WHEREAS, the Subscriber or its
assigns shall have the exclusive right, but not obligation, up to an acquire an
additional 350,000 shares of Preferred Stock at the Purchase Price set forth
herein in one or more future closings; and

    

     WHEREAS, the Company is
granting a right of first offer and registration rights to the Subscriber with
respect to all transactions consummated within 12 months of the Initial Closing
(as hereinafter defined) of the sale of Preferred Stock hereby; and

    

    NOW, THEREFORE, in
consideration of the mutual covenants and other agreements contained in this
Agreement the Company and the Subscribers hereby agree as follows:

    

               1.           Purchase and Sale of
Preferred Stock.

     

    1.1.           Sale and Issuance of
Preferred Stock.

     

    (a) The
Company shall adopt and file with the Secretary of State of the State of Nevada
on or before the Initial Closing (as defined below) the Certificate in the form
of Exhibit
A attached to this Agreement.

     

    (b) Subject
to the terms and conditions of this Agreement, Subscriber agrees to purchase at
the Closing and the Company agrees to sell and issue to each Subscriber at the
Closing units consisting of 250,000 shares of Preferred Stock and Investor
Warrants, at a purchase price of $1.00 per Unit (or an aggregate of
$250,000).  At each Closing, the Company shall deliver to each
Subscriber, among other closing documents mentioned herein, a certificate
representing the Preferred Stock being purchased by such Subscriber at such
Closing against payment of the purchase price therefore by check payable to the
Company, by wire transfer to a bank account designated by the
Company.

     

    1.2.           Additional
Shares.  After the Initial Closing, the Subscriber or its
assigns shall have the sole and exclusive right, but not obligation, to acquire
at their sole and absolute discretion and from time to time in whole or in part,
up to an additional 350,000 shares of Series A Preferred Stock, on the same
terms and conditions as those contained in this Agreement, (subject to
appropriate adjustment in the event of any stock dividend, stock split,
combination or similar recapitalization affecting such shares) of Series A
Preferred Stock (the “Additional Shares”), provided
that (i) such right to acquire Additional Shares is delivered by fax, email or
overnight courier or by hand, to the Company or its representatives, prior to
one year after the Initial Closing, (ii) each the Subscriber execute and deliver
a notice to the Company and tender the funds for such Additional Shares (and in
the event of the exercise of this right in whole or in part by an assignee of
Subscriber, then such assignee shall execute and be bound by this Agreement) and
(iii) the Purchase Price for any Additional Shares shall be the adjusted Series
A Preferred Stock Original Issuance Price as set forth in the Certificate and
shall be reflected at each closing in subsequent series, (i.e. Series A-1,
Series A-2, Series A-3) until an aggregate of 600,000 shares of Series A
Preferred Stock are sold.  In the event that notice is given by
Subscriber or its assigns to the Company to acquire any Additional Shares, then
the Company shall sell such shares to Subscriber or its Assigns in a subsequent
Closing at the adjusted Series A Original Issuance Price.  For
avoidance of doubt, any representation, warranty or covenant of the Company
hereby to the “Preferred Stock” shall be deemed to include and encompass the
Additional Shares if and when such shares are acquired by
Subscriber.

     

                                    1.3           Use of Proceeds. In
accordance with the directions of the Company’s Board of Directors, the Company
shall use the proceeds from the sale of the Preferred Shares (including any
Additional Shares) in accordance with Schedule
1.3 annexed hereto.

    

     

               2.           Closing.  The
consummation of the transactions contemplated herein (the “Initial Closing”) shall take
place at the offices of Hodgson Russ LLP, 1540 Broadway, 24th Floor,
New York, NY 10036, upon the satisfaction of all conditions to Closing set forth
in this Agreement, at a date and time acceptable to the parties (the date on
which the actual Closing takes place shall be referred to as the “Closing
Date”).  Thereafter, additional closings (the “Additional Closing” and the
date thereof shall be the “Additional Closing Date” and, each closing date and
Closing are sometimes referred to herein as a “Closing Date” and Closing,
respectively) may take place from time to time at the discretion of the
Subscriber or its assigns.

     

    2.1           Closing Deliveries by
Company.  At each Closing, the Company shall have approved and
filed the Certificate with the State of Nevada and delivered those closing
documents and instruments required by Section 10
below.  

     

    2.2           Closing Deliveries by Proxy
Parties.  At each Closing, the Proxy Parties (as defined below)
shall deliver to Subscriber the Proxy Agreements, all, duly authorized,
approved, executed and delivered as set forth in Section 10 below. The “Proxy Parties” shall include
(i) Jan Wallace, an individual; (ii) Munjit Johal, an individual; and (iii) Josh
LeVine, an individual.

     

    2.3           Closing Deliveries by
Subscriber.   At each Closing, Subscriber shall deliver to
the Company its respective portion of the Purchase Price in immediately
available funds and this Agreement.

    

               3.           Subscriber’s Representations and
Warranties.  Each Subscriber hereby represents and warrants to
and agrees with the Company, severally and not jointly, only as to such
Subscriber that:

    

                          (a)           Organization and Standing of
the Subscribers.  If the Subscriber is an entity, such
Subscriber is a corporation, partnership or other entity duly incorporated or
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization.

    

                          (b)           Authorization and
Power.  Such Subscriber has the requisite power and authority
to enter into and perform this Agreement and to purchase the Securities being
sold to it hereunder.  The execution, delivery and performance of this
Agreement by such Subscriber and the consummation by it of the transactions
contemplated hereby and thereby have been duly authorized by all necessary
corporate or partnership action on the part of the Subscribers, and no further
consent or authorization of such Subscriber or its board of directors,
stockholders, partners, members or managers, as the case may be, is
required.

    

                          (c)           No
Conflicts.  The execution, delivery and performance of this
Agreement and the consummation by such Subscriber of the transactions
contemplated hereby, do not conflict with such Subscriber’s charter documents or
bylaws or other organizational documents.  Subscriber is not required
to obtain any consent, authorization or order of, or make any filing, notice
filing or registration with, any court or governmental agency or creditor in
order for it to execute, deliver or perform any of its obligations under this
Agreement.

    

                          (d)           Information on
Company. Such Subscriber has reviewed and relied upon the accuracy of the
“SEC Documents” (as
defined in Section 5(h) hereof) and has been afforded (i) the opportunity to ask
such questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of the
offering of the Securities and the merits and risks of investing in the
Securities; (ii) access to information about the Company and the “Subsidiaries” (as defined in
Section 5(u) hereof) and their respective financial condition, results of
operations, business, properties, management and prospects sufficient to enable
it to evaluate the investment in the Securities; and (iii) the opportunity to
obtain such additional information that the Company possesses or can acquire
without unreasonable effort or expense that is necessary to make an informed
investment decision with respect to the investment.  Neither such
inquiries nor any other investigation conducted by or on behalf of such
Subscriber or its representatives or counsel shall modify, amend or affect such
Subscriber’s right to rely on the truth, accuracy and completeness of the SEC
Documents (subject to a re-audit of the Company’s financial statements currently
being conducted) and the Company’s representations and warranties contained in
this Agreement.

    

                          (e)           Information on
Subscriber.  The Subscriber is an “accredited investor”, as such
term is defined in Regulation D promulgated under the 1933 Act, is experienced
in investments and business matters, and, with its representatives, has such
knowledge and experience in financial, tax and other business matters as to
enable the Subscriber to utilize the information made available by the Company
to evaluate the merits and risks of and to make an informed investment decision
with respect to the proposed purchase of the Securities.  The
information set forth on the signature page hereto regarding the Subscriber is
accurate.  Such Subscriber is not a registered broker-dealer under
Section 15 of the Securities Exchange Act of 1934, as amended (the “1934 Act”).  Such
Subscriber does not have any agreement or understanding, directly or indirectly,
with any Person to distribute any of the Securities.

    

                          (f)           Investment Intent.
Such Subscriber is acquiring the Securities as principal for its own account for
investment purposes only and not with a view to or for distributing or reselling
such Securities or any part thereof, without prejudice, however, to such
Subscriber’s right at all times to sell or otherwise dispose of all or any part
of such Securities in compliance with applicable federal and state securities
laws.  Subject to the immediately preceding sentence, nothing
contained herein shall be deemed a representation or warranty by such Subscriber
to hold the Securities for any period of time.

    

               (g)           Legends.  Each
Subscriber understands that the certificates or other instruments representing
the Securities shall bear a restrictive  legend in substantially the
following form:

    

    THE
SECURITIES REPRESENTED BY THIS  CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES HAVE BEEN ACQUIRED SOLELY
FOR  INVESTMENT PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF
1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF
COUNSEL, IN A GENERALLY ACCEPTABLE FORM TO THE COMPANY, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.

     

    The legend set forth above shall be removed and the Company
shall, within five (5) business days, issue a certificate without such legend to
the holder of the Securities upon which it is stamped, if, unless otherwise
required by state securities laws, (i) in connection with a sale transaction,
provided the Securities are registered under the 1933 Act or (ii) in connection
with a sale transaction, after such holder provides the Company with an opinion
of counsel, which opinion shall be in form, substance and scope customary for
opinions of counsel in comparable transactions, to the effect that a public
sale, assignment or transfer of the Securities may be made without registration
under the 1933 Act.

    

                          (h)           Communication of
Offer. The offer to sell the Securities was directly communicated to such
Subscriber by the Company and/or its agents.  At no time was such
Subscriber presented with or solicited by any leaflet, newspaper or magazine
article, spam or “mass” email, radio or television advertisement, or any other
form of general advertising or solicited or invited to attend a promotional
meeting otherwise than in connection and concurrently with such communicated
offer.  Notwithstanding anything to the contrary contained in this
Agreement, the Company acknowledges and agrees that such Subscriber may transfer
the Securities to its Affiliates (as defined below) provided that each such
Affiliate is an “accredited
investor” under Regulation D and such Affiliate agrees to be bound by the
terms and conditions of this Agreement and Security Agreements.  For
the purposes of this Agreement, an “Affiliate” of any person or
entity means any other person or entity directly or indirectly controlling,
controlled by or under direct or indirect common control with such person or
entity. For purposes of this definition, “control” means the power to
direct the management and policies of such person or firm, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise.

    

                          (i)           Enforceability.  This
Agreement has been duly authorized and executed by such Subscriber and, when
delivered by the Subscriber, will become Subscriber’s valid and binding
agreement enforceable against Subscriber in accordance with its terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’ rights
generally and to general principles of equity.

    

                          (j)           Group.  Subscriber,
together with any other shareholders or affiliates of Subscriber, is not part of
a “Group” (as defined in Schedule 13 and Section 13 of the 1934 Act) and is not
acting in concert with any person or persons as part of a Group with respect to
the acquisition or holding of the Securities or any other securities of the
Company, and does not have any agreement or understanding with any other person
relating to the sale or voting of securities held by Subscriber or such other
persons.  In each case, a Group for the foregoing purposes shall only
be deemed to exist if said Group beneficially owns or controls 5% or more (as
defined in Rule 13(d) of the 1934 Act) of the voting securities of the
Company.

    

    (k)           Funds.  The
Subscriber has taken such measures as are required by law to assure that the
funds used to pay to the Company the purchase price as set forth on the
signature pages hereto are derived: (i) from transactions that do not violate
United States law nor, to the extent such funds originate outside the United
States, do not violate the laws of the jurisdiction in which they originated;
and (ii) from permissible sources under United States law and to the extent such
funds originate outside the United States, under the laws of the jurisdiction in
which they originated.

    

    (l)           Patriot Act and No
Prohibited Investment.  The Subscriber is in compliance with any and
all applicable provisions of the Patriot Act including, without limitation,
amendments to the Bank Secrecy Act. If the Subscriber is a Financial
Institution, it has established and is in compliance with all procedures
required by the Subscriber and the Bank Secrecy Act.  Subscriber
hereby represents and warrants that the proposed investment in the Company is
being made on its own behalf and does not directly or indirectly contravene
United States federal, state, local or international laws or regulations
applicable to Subscriber, including anti-money laundering laws (a "Prohibited Investment"). 
Federal regulations and Executive Orders administered by the U.S. Treasury
Department's Office of Foreign Assets Control ("OFAC") prohibit, among other
things, the engagement in transactions with, and the provision of services to,
certain foreign countries, territories, entities and individuals. The lists of
OFAC prohibited countries, territories, persons and entities can be found on the
OFAC website at <www.treas.gov/ofac>.  Subscriber hereby
represents and warrants that it is not a country, territory, person or entity
named on an OFAC list, nor is Subscriber a natural person or entity with whom
dealings are prohibited under any OFAC regulations.

     

    4.           Company Representations and
Warranties.  Except as set forth in the Schedule of Exceptions
attached hereto as Schedule 4 (the
“Schedule of
Exceptions”), the Company represents and warrants to and agrees with each
Subscriber that:

    

                          (a)           Due Incorporation.
The Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Nevada, and has the requisite corporate
power to own its properties and to carry on its business as disclosed in the
Latest SEC Documents (as defined in Section 4(h)).  The Company is
duly qualified as a foreign corporation to do business and is in good standing
in each jurisdiction where the nature of the business conducted or property
owned by it makes such qualification necessary, other than those jurisdictions
in which the failure to so qualify would not have or be reasonably likely to
have a Material Adverse Effect.  For purpose of this Agreement, a
“Material Adverse
Effect” shall mean any of (i) a material and adverse effect on the
legality, validity or enforceability of any of this Agreement (ii) a material
and adverse effect on the results of operations, assets, prospects, business or
condition (financial or otherwise) of the Company and the Subsidiaries, taken as
a whole, or (iii) an adverse impairment to the Company’s ability to perform on a
timely basis its obligations under this Agreement.

    

    (b)           Capitalization.  The
authorized capital stock of the Company, other than the Conversion Shares (as
defined in Section
10 below), consists of
90,000,000 shares of Common Stock, par value $.001 per share, of which 24,265,708 shares are issued
and outstanding as of the date hereof, and 10,000,000 shares of “blank
check” preferred stock of which 600,000 shares have been designated as “Series A
Preferred Stock” and reserved for issuance to Subscriber hereby in one or more
series.   In addition, at Closing, the Certificate will have been
duly authorized and filed.   Except as disclosed in the Latest
SEC Documents (as defined in Section 4(h)), no shares of Common Stock or
Preferred Stock are subject to preemptive rights or any other similar rights or
any liens or encumbrances suffered or permitted by the Company or, the existence
of any such rights will be waived prior to Closing.  Except as
disclosed in the SEC Documents, as of the date of this Agreement, (i) there are
no outstanding options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company or any of its
Subsidiaries, or contracts, commitments, understandings or arrangements by which
the Company or any of its Subsidiaries is or may become bound to issue
additional shares of capital stock of the Company or any of its Subsidiaries or
options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, any
shares of capital stock of the Company or any of its Subsidiaries, (ii) there
are no outstanding debt securities and (iii) there are no agreements or
arrangements under which the Company or any of its Subsidiaries is obligated to
register the sale of any of their securities under the 1933 Act and (iv) except
as set forth on Schedule 4(b), there are no outstanding registration statements
and there are no outstanding comment letters from the Securities and Exchange
Commission (the “Commission”) or any other
regulatory agency. There are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of
any of the Securities as described in this Agreement (except, to the extent, if
any, that such rights are understood prior to Closing).  The Company
has reserved for issuance all of the Conversion Shares upon conversion of the
Preferred Stock, all of which have been duly deposited into escrow in accordance
with the Escrow Agreement along with appropriate stock transfer
documentation.

    

                          (c)           Authorization, Enforcement,
Compliance with Other Instruments.  (i) The Company has the
requisite corporate power and authority to enter into and perform this Agreement
and to issue the Preferred Stock and Investor Warrants, and, upon conversion or
exercise thereof, the Conversion Shares and Warrant Shares, respectively, in
accordance with the terms hereof and thereof, (ii) the execution and delivery of
this Agreement  by the Company (or any subsidiary) to which it is a
party and the consummation by it or them of the transactions contemplated hereby
and thereby, including, without limitation, the issuance of the Preferred Stock,
the Conversion Shares, the Investor Warrants and the Warrant Shares and the
reservation for issuance and the issuance of the Conversion Shares and Warrant
Shares issuable upon conversion or exercise thereof (whether in the event of a
mandatory redemption of Preferred Stock or otherwise), have been duly authorized
by the Company’s Board of Directors and no further consent or authorization is
required by the Company, its Board of Directors or its stockholders, (iii) on or
before the Closing Date, this Agreement  will have been duly executed
and delivered by the Company, (iv) this Agreement will, when executed and
delivered constitute the valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms, except as such
enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws
relating to, or affecting generally, the enforcement of creditors’ rights and
remedies.

    

                          (d)           Consents.  No
consent, approval, authorization or order of any court, governmental agency or
body or arbitrator having jurisdiction over the Company, or any of its
Affiliates, or FINRA, the SEC, or the OTC Bulletin Board market system or the
Company’s stockholders, is required for the execution by the Company of this
Agreement to which it is a party and compliance and performance by the Company
of its covenants and obligations under this Agreement, including, without
limitation, the issuance and sale of the Securities.

    

                          (e)           No Violation or
Conflict. Assuming the representations and warranties of the Subscriber
in Section
3 are
true and correct (except with respect to Section 3(c)),
neither the issuance and sale of the Securities nor the performance of the
Company’s obligations under this Agreement will: (i) violate, conflict with,
result in a breach of, or constitute a default (or an event which with the
giving of notice or the lapse of time or both would be reasonably likely to
constitute a default) under (A) the Articles of Incorporation of the Company as
in effect on the date hereof, including the Certificate (the “Certificate of
Incorporation”), the Bylaws of the Company as in effect on the date
hereof (the “Bylaws”) or
other organizational documents of the Company, (B) any decree, judgment, order,
law, treaty, rule, regulation or determination applicable to the Company of any
court, governmental agency or body, or arbitrator having jurisdiction over the
Company or over the properties or assets of the Company or any of its
Affiliates, (C) the terms of any bond, debenture, note or any other evidence of
indebtedness, or any agreement, stock option or other similar plan, indenture,
lease, mortgage, deed of trust or other instrument to which the Company or any
of its Affiliates is a party, by which the Company or any of its Affiliates is
bound, or to which any of the properties of the Company or any of its Affiliates
is subject, or (D) the terms of any “lock-up” or similar provision
of any underwriting or similar agreement to which the Company, or any of its
Affiliates is a party except the violation, conflict, breach, or default of
which would not have or be reasonably likely to have a Material Adverse Effect;
or (ii) result in the creation or imposition of any lien, charge or encumbrance
upon the Securities or any of the assets of the Company or any of its
Affiliates; or (iii) result in the activation of any anti-dilution rights or a
reset or repricing of any debt or security instrument of any other creditor or
equity holder of the Company, nor result in the acceleration of the due date of
any obligation of the Company; or (iv) result in the activation of any
piggy-back registration rights of any person or entity holding securities of the
Company or having the right to receive securities of the Company.

    

                          (f)           Issuance of the
Securities. The Securities upon issuance: (i) are free and clear of any
security interests, liens, claims or other encumbrances, subject to restrictions
upon transfer under the 1933 Act and any applicable state securities laws; (ii)
have been duly and validly authorized and on the date exercise of the Investor
Warrants, the Warrant Shares will be duly and validly issued, fully paid and
non-assessable or if registered pursuant to the 1933 Act, and if resold pursuant
to an effective registration statement, will be freely tradable without any
restriction whatsoever; (iii) will not have been issued or sold in violation of
any pre-emptive or other similar rights of the holders of any securities of the
Company; and  (iv) will not subject the holders thereof to personal
liability by reason of being such holders.

    

                          (g)           Litigation. There is
no pending or, to the best knowledge of the Company, threatened action, suit,
proceeding or investigation before any court, governmental agency or body, or
arbitrator having jurisdiction over the Company, or any of its Affiliates that
would affect the execution by the Company or the performance by the Company of
its obligations under the Transaction Documents to which it is a party. Except
as disclosed Schedule 4(g) to the Schedule of Exceptions or as disclosed in the
Latest SEC Documents (as defined in Section 4(h)), there is no pending or, to
the best knowledge of the Company, basis for or threatened action, suit,
proceeding or investigation before any court, governmental agency or body, or
arbitrator having jurisdiction over the Company, or any of its Affiliates which
litigation if adversely determined would have or be reasonably likely to have a
Material Adverse Effect.

    

                          (h)           SEC
Documents:  Financial Statements.  Since December 31,
2005, the Company has filed all reports, schedules, forms, statements and other
documents required to be filed by it with the Commission under the 1934 Act (all
of the foregoing filed prior to the date hereof or amended after the date hereof
and all exhibits included therein and financial statements and schedules thereto
and documents incorporated by reference therein, being hereinafter referred to
as the “SEC Documents”
and any of the foregoing filed prior to the date hereof for periods ending on or
after December 31, 2006 or amended after the date hereof and all exhibits
included therein and financial statements and schedules thereto and documents
incorporated by reference therein, being hereinafter referred to as the “Latest SEC
Documents”).   As of their respective dates, the financial
statements of the Company disclosed in the SEC Documents (the “Financial Statements”) are the
subject of a re-audit by the Company’s current principal
auditors.  The Company has not, in the past two years, received any
notice from FINRA, the NASD, the OTC Bulletin Board quotation system or the SEC,
advising the Company that it is in danger of having its securities listed, or
that any late filings of SEC reports by it in the future would endanger the
eligibility of its common stock to remain quoted on the OTC Bulletin Board
quotation or any other quotations service.

    

                          (i)           No Market
Manipulation. The Company has not taken, and will not take, directly or
indirectly, any action designed to, or that might reasonably be expected to,
cause or result in stabilization or manipulation of the price of the Common
Stock to facilitate the sale or resale of the Securities or affect the price at
which the Securities may be issued or resold.

    

                          (j)           Information Concerning
Company. The Subscriber has not been provided with any material
non-public information concerning the Company, except (i) as the terms and
conditions of the transactions contemplated hereby may constitute such
information, or (ii) pursuant to non-disclosure agreements or documents of
similar purpose.  The Company understands and confirms that the
Subscriber will rely on the representations and covenants herein effecting
transactions in securities of the Company. All disclosure provided to the
Subscriber regarding the Company, its business and the transactions contemplated
hereby, furnished by or on behalf of the Company (including the Company’s
representations and warranties set forth in this Agreement) are true and correct
in all material respects as of the date thereof 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 SEC Documents contain all material
information relating to the Company and its operations and financial condition
as of their respective dates which information is required to be disclosed
therein, (subject to a re-audit as disclosed in certain SEC Documents) and
disclosed in the Latest SEC Documents which are subject to audit.

    

                          (k)           Stop Transfer. The
Securities, when issued, will be restricted securities. The Company will not
issue any stop transfer order or other order impeding the sale, resale or
delivery of any of the Securities, except as may be required by any applicable
federal or state securities laws and unless contemporaneous notice of such
instruction is given to the Subscriber.

    

                          (l)           Defaults. The Company
is not in violation of its Certificate of Incorporation or
Bylaws.  The Company is (i) not in default under or in violation of
any agreement or instrument to which it is a party or by which it or any of its
properties are bound or affected, which default or violation would have or be
reasonably likely to have a Material Adverse Effect or which default has not
been waived for purposes of allowing the issuance of the Preferred Stock and
entry into this Agreement, (ii) not in default with respect to any order of any
court, arbitrator or governmental body or subject to or party to any order of
any court or governmental authority arising out of any action, suit or
proceeding under any statute or other law respecting antitrust, monopoly,
restraint of trade, unfair competition or similar matters, or (iii) not in
violation of any statute, rule or regulation of any governmental authority which
violation would have or be reasonably likely to have a Material Adverse
Effect.

    

                          (m)           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 the offer of the Securities pursuant to this
Agreement to be integrated with prior offerings by the Company for purposes of
the 1933 Act or any applicable stockholder approval
provisions.  Neither the Company nor any of its Affiliates will take
any action or steps that would cause the offer or issuance of the Securities to
be integrated with other offerings.

    

                          (n)           No General Solicitation;
Private Placement.  Neither the Company, nor any of its
Affiliates, nor to its knowledge, any person acting on its or their behalf, has
engaged in any form of general solicitation or general advertising (within the
meaning of Regulation D under the 1933 Act) in connection with the offer or sale
of the Securities. Assuming the accuracy of the Subscribers’ representations and
warranties set forth in Sections 3(d)-(f), no registration under the 1933 Act is
required for the offer and sale of the Securities by the Company to the
Subscribers under this Agreement.

    

                          (o)           Listing.  The
Company has not received any oral or written notice that its Common Stock is not
eligible or will become ineligible for quotation on the OTC Bulletin Board, and
there have been no FINRA or similar hearings relating to the listing or
quotation of the Company’s securities on such market or any other market in the
past two years,  or that its Common Stock does not meet all
requirements for the continuation of such quotation, and the Company satisfies
all the requirements for the continued listing of its Common Stock on the OTC
Bulletin Board.

    

                          (p)           No Undisclosed
Liabilities.  The Company has no liabilities or obligations
which are material, individually or in the aggregate, which are not disclosed as
of the respective dates as of which the information is given in the SEC
Documents, other than those incurred in the ordinary course of the Company’s
businesses since December 31, 2007 and which, individually or in the aggregate,
would not reasonably be expected to have or be reasonably likely to have a
Material Adverse Effect.

    

                          (q)           No Undisclosed Events or
Circumstances.  Since December 31, 2007, no event or
circumstance has occurred or exists with respect to the Company or its
businesses, properties, operations or financial condition, that, under
applicable law, rule or regulation, requires public disclosure or announcement
prior to the date hereof by the Company but which has not been so publicly
announced or disclosed in the SEC Documents.

    

                          (r)           Acknowledgment Regarding
Subscribers’ Purchase of the Securities.  The Company
acknowledges and agrees that the Subscribers are acting solely in the capacity
of an arm’s length purchaser with respect to this Agreement and the transactions
contemplated hereby.  The Company further acknowledges that the
Subscribers are not acting as a financial advisor or fiduciary of the Company
(or in any similar capacity) with respect to this Agreement and the transactions
contemplated hereby and any advice given by the Subscribers or any of their
respective representatives or agents in connection with this Agreement and the
transactions contemplated hereby is merely incidental to such Subscribers’
purchase of the Securities.  The Company further represents to the
Subscribers that the Company’s decision to enter into this Agreement has been
based solely on the independent evaluation by the Company and its
representatives.

    

    (s)           No Disagreements with
Accountants and Lawyers.  There are no disagreements of any
kind presently existing, or reasonably anticipated by the Company to arise,
between the Company and the accountants (other than those specified designates
with the independent auditors or the Company’s financial statements which have
already been disclosed in the SEC Reports), and lawyers formerly or presently
employed by the Company, including but not limited to disputes or conflicts over
payment owed to such accountants and lawyers. 

    

                          (t)           Omitted.

    

    (v)           Title to
Assets.  The Company and its subsidiaries have good and
marketable title in fee simple to all real property owned by them that is
material to their respective businesses and good and marketable title in all
personal property owned by them that is material to their respective businesses,
in each case free and clear of all liens, except for liens as do not materially
affect the actual value of such property and do not materially interfere with
the use made and proposed to be made of such property by the Company and its
Subsidiaries. Any real property and facilities held under lease by the Company
and its Subsidiaries are held by them under valid, subsisting and enforceable
leases of which the Company and its Subsidiaries are in compliance, except as
could not, individually or in the aggregate, have or be reasonably likely to
have a Material Adverse Effect.

    

                          (w)           Patents and
Trademarks. The Company and its subsidiaries have, or have rights to use,
in accordance with applicable U.S. or foreign laws where it transacts business,
all patents, patent applications, trademarks, trademark applications, service
marks, trade names, copyrights, licenses and other similar rights that are
necessary or material for use in connection with their respective businesses as
described in the Latest SEC Documents and which the failure to so have could,
individually or in the aggregate, have or be reasonably likely to have a
Material Adverse Effect (collectively, the “Intellectual Property
Rights”).  Neither the Company nor any Subsidiary has received
a written notice that the Intellectual Property Rights used by the Company or
any Subsidiary violates or infringes upon the rights of any
person.  To the knowledge of the Company, there  is no
existing infringement by another person of any of the Intellectual Property
Rights.

    

                          (x)           Solvency.  Based
on the financial condition of the Company as of the Closing Date (and assuming
that the Closing shall have occurred), (i) the Company’s fair saleable value of
its assets exceeds the amount that will be required to be paid on or in respect
of the Company’s existing debts and other liabilities (including known
contingent liabilities) as they mature, (ii) the Company’s assets do not
constitute unreasonably small capital to carry on its business for the current
fiscal year as now conducted and as proposed to be conducted including its
capital needs taking into account the particular capital requirements of the
business conducted by the Company, and projected capital requirements and
capital availability thereof, and (iii) the current cash flow of the Company,
together with the proceeds the Company would receive, were it to liquidate all
of its assets, after taking into account all anticipated uses of the cash, would
be sufficient to pay all amounts on or in respect of its debt when such amounts
are required to be paid. The Company will not incur debts beyond its ability to
pay such debts as they mature (taking into account the timing and amounts of
cash to be payable on or in respect of its debt).

    

                          (y)           Compliance with
Law.  The Company and its subsidiaries are conducting business
in all material respects in compliance with all applicable laws and
orders.  The Company and the Subsidiaries hold all permits of all
governmental authorities that by the nature of the operations of the business
conducted by it or the ownership of the assets owned by it are permits required
to conduct the operation and ownership thereof in the manner currently conducted
or to use such assets in the manner currently utilized in the business, except
for such permits, if any, as to which the failure to hold are not reasonably
likely to have a Material Adverse Effect.  

    

                          (z)           Environmental
Laws.  The Company and its subsidiaries are (i) in compliance
with any and all applicable foreign, federal, state and local laws and
regulations relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or
contaminants (“Environmental
Laws”), (ii) have received all permits, licenses or other approvals
required of them under applicable Environmental Laws to conduct their respective
businesses and (iii) are in compliance with all terms and conditions of any such
permit, license or approval.  The Company and its Subsidiaries have
not been notified by any governmental authority that any such environmental
permits will be modified, suspended or revoked or cannot be renewed in the
ordinary course of business consistent with past practice.  There are
no present or past environmental conditions at any property owned, leased or
used by the Company or any Subsidiary.  There is no pending or, to the
best knowledge of the Company, threatened environmental claim against the
Company or any Subsidiary relating to their business or the properties owned,
leased or used thereby, or against any entity relating to the business of the
Company or such properties, for which the Company or any Subsidiary may have any
liability.  There are no hazardous materials or other conditions at,
under or emanating from, and there has been no release at, on or adjoining, any
real property currently or formerly owned, operated or leased by the Company or
any Subsidiary or their respective predecessors in interest that would
reasonably be expected to give rise to an environmental claim against or
liability of any of the foregoing under any Environmental
Law.  Neither the Company nor any Subsidiary has assumed,
contractually or by operation of applicable law, any liabilities of any third
party under any Environmental Law.

    

                          (aa)                      Tax
Status.  Except as set forth in the SEC Documents, the Company
and each of its Subsidiaries has made and filed through December 31, 2007 (and
has valid extensions for all applicable periods thereafter) all federal and
state income and all other tax returns, reports and declarations required by any
jurisdiction to which it is subject and (unless and only to the extent that the
Company and each of its Subsidiaries has set aside on its books provisions
reasonably adequate for the payment of all unpaid and unreported taxes) has paid
all taxes and other  governmental assessments and charges that are
material in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith and has set aside on
its books provision reasonably adequate for the payment of all taxes for periods
subsequent to the periods to which such returns, reports or declarations apply,
in each case, except where the failure to make such filing or payment or set
aside such amount would not, individually or in the aggregate, have or be
reasonably likely to have a Material Adverse Effect.

    

                          (bb)                      Certain
Transactions.  Except as set forth in the Latest SEC Documents,
and except for arm’s length transactions pursuant to which the Company makes
payments in the ordinary course of business upon terms no less favorable than
the Company could obtain from third parties and other than the grant of stock
options disclosed in the Latest SEC Documents, none of the officers, directors,
or employees of the Company or any Subsidiary is presently a party to any
transaction with the Company or any Subsidiary (other than for services as
employees, officers and directors), including any contract, agreement or other
arrangement providing for the furnishing of services to or by, providing for
rental of real or personal property to or from, or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the
Company, any corporation, partnership, trust or other entity in which any
officer, director, or any such employee has a substantial interest or is an
officer, director trustee or partner.

    

    5.           Exempt Offering. The offer and
issuance of the Securities to the Subscribers is being made pursuant to the
exemption from the registration provisions of the 1933 Act afforded by Section
4(2)  of the 1933
Act and/or Rule 506 of Regulation D promulgated thereunder. The Company will
provide, at the Company’s expense, such legal opinions in the future as are
reasonably necessary for the issuance and resale of the Warrant Shares issuable
upon the due exercise of the Investor Warrants.

    

    6.           Broker/Legal
Fees.  The Company on the one hand, and each Subscriber (for
itself only) on the other hand, agree to indemnify the other against and hold
the other harmless from any and all liabilities to any persons claiming
brokerage commissions or finder’s fees on account of services purported to have
been rendered on behalf of the indemnifying party in connection with this
Agreement or the transactions contemplated hereby and arising out of such
party’s actions.

    

    7.           Covenants of the Company. The
Company covenants and agrees with the Subscriber as follows:

    

               (a)           Listing.  The
Company will maintain the listing of its Common Stock on the OTC Bulletin board
or any other national exchange or listing system, whichever of the foregoing
is at the time the principal trading exchange or market for the Common Stock
(the “Principal
Market”), and will comply in all respects with the Company’s reporting,
filing and other obligations under the bylaws or rules of the Principal Market,
as applicable.

    

               (b)           Market Regulations.
The Company shall notify the Commission, the Principal Market and applicable
state authorities, in accordance with their requirements, of the transactions
contemplated by this Agreement, and shall take all other necessary action and
proceedings as may be required and permitted by applicable law, rule and
regulation, for the legal and valid issuance of the Securities to the
Subscribers and promptly provide copies thereof to Subscriber.

    

               (c)           Reservation.  Prior
to the Closing Date, the Company undertakes to reserve from its authorized but
unissued shares of Common Stock, a number of such shares equal to (i) 100% of
the number of Warrant Shares as are issuable upon exercise of the Investor
Warrants and (ii) 10% of the maximum number of Conversion Shares as may be
issued upon conversion in the event of a mandatory conversion. Failure to have
sufficient shares reserved pursuant to this Section 9(d) for three (3)
consecutive business days or ten (10) days in the aggregate shall be a material
default of the Company’s obligations under this Agreement and the Preferred
Stock.

    

               (d)           Books and
Records.  From the date of this Agreement and until the later
of (i) two (2) years after the Closing Date, or (ii) until all the Preferred
Stock have been converted and Conversion Shares resold or transferred by all
Subscriber or are eligible for resale pursuant Rule 144, without regard to
volume limitations, the Company will keep true records and books of account in
which full, true and correct entries will be made of all dealings or
transactions in relation to its business and affairs in accordance with
generally accepted accounting principles applied on a consistent
basis.

    

               (e)           Reasonable Best
Efforts.  Each party shall use its reasonable best efforts
timely to satisfy each of the conditions to be satisfied by it as provided in
Sections 11 and 12 of this Agreement.

    

    8.           Covenants of the Company Regarding
Indemnification.

    

               (a)           The
Company agrees to indemnify, hold harmless, reimburse and defend the subscriber,
the subscriber’s officers, directors, agents, Affiliates, control persons, and
principal stockholders or, equity holders, against any actual: claim, cost,
expense, liability, obligation, loss or damage (including reasonable legal fees)
of any nature, incurred by or imposed upon the Subscriber or any such person
which results, arises out of or is based upon (i) any material misrepresentation
by Company or breach of any warranty made by the Company in this Agreement or in
any Exhibits or Schedules attached hereto or (ii) after any applicable notice
and/or cure periods, any breach or default in performance by the Company of any
covenant or undertaking to be performed by the Company hereunder.

    

    9.           Conditions to the Company’s
Obligation to Sell.  The obligation of the Company hereunder to
issue and sell the Preferred Stock and Additional Shares, if any are requested
to be purchased, and Investor Warrants to the Subscriber at any Closing, is
subject to the satisfaction, on or before the Closing Date, of each of the
following conditions, provided that these conditions are for the Company’s
benefit and may be waived by the Company at any time in its sole
discretion:

    

               (a)           The
Subscriber(s) shall have executed this Agreement and any of the other
transaction documents to which it is a party, and delivered it to the Company,
or, in the case of additional shares, a notice demanding such Subscriber’s right
to acquire Additional Shares stating the amount of Additional Shares being
subscribed for and the closing date therefore.

    

               (b)           The
Subscriber shall have delivered to the Company the Purchase Price and by wire
transfer of immediately available U.S. funds pursuant to the wire instructions
provided by the Company.

    

               (c)           The
representations and warranties of the Subscriber(s) shall be true and correct in
all material respects as of the date when made and as of the Closing Date as
though made at that time (except for representations and warranties that speak
as of a specific date), and the Subscriber shall have performed, satisfied and
complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the
Subscriber on or before the Closing Date.

    

     

               10.           Conditions to the Subscribers’
Obligation to Purchase.  The obligation of the Subscriber
hereunder to subscribe for the Preferred Stock to be sold at the Initial Closing
or any subsequent closing, and Investor Warrants to be sold at Initial Closing
or any subsequent closing is subject to the satisfaction, on or before the
Closing Date, of each of the following conditions, any which may be waived at
Subscriber’s sole and absolute discretion:

     

    (a)           The
Certificate shall have been duly authorized and approved and filed with the
State of Nevada, and in full force and effect;

     

    (b)           Certificates
representing the Preferred Stock shall be executed and delivered to each
Subscriber,

     

    (c)           The
Company shall have approved, authorized executed and delivered:

     

    (i)  the Escrow Agreement to
the agent for the Subscribers set forth therein (the “Agent”) along with the
25,000,000 shares of Common Stock, par value $.001 of the Company for issuance
upon conversion of the Preferred Stock, based on the adjusted Conversion Price
(as defined in the Certificate) (the “Escrow Shares”) and shall have
reserved such shares plus any other shares that may be issuable upon conversion
of the Preferred Stock for issuance thereon (the “Conversion
Shares”),

     

    (ii)           Investor
Warrants to purchase such number of Warrant Shares as equals .95 times the
number of Conversion Shares into which the Preferred Stock issued is convertible
into,

     

    (iii)           A
Registration Rights Agreement with respect to all of the Conversion Shares and
Warrant Shares,  

    

    all duly authorized, approved, executed
and delivered by the Company, and a as well as a legal opinion from counsel to
the Company, as reasonably approved by the Subscriber’s, which shall contain
customary opinions relating to enforceability, validity, due authority, no
conflicts of laws of all agreements and securities issued as well as the valid
and fully paid issuance of Preferred Stock and all other securities contemplated
hereby (the “Opinion”).

    

               (d)           The
Common Stock shall be authorized for quotation on the OTC Bulletin Board and
trading in the Common Stock shall not have been suspended for any
reason.

    

               (e)           The
representations and warranties of the Company shall be true and correct in all
material respects (except to the extent that any of such representations and
warranties is already qualified as to materiality, in which case, such
representations and warranties shall be true and correct without further
qualification) as of the date when made and as of the Closing Date as though
made at that time (except for  representations and warranties that
speak as of a specific date) and the Company shall have performed, satisfied and
complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the
Company on or prior to the Closing Date.  If requested by the
Subscribers, the Subscribers shall have received a certificate, executed by the
President and the Treasurer of the Company, dated as of the Closing Date, to the
foregoing effect and as to such other matters as may be reasonably requested by
the Subscribers.

    

               (g)           The
Proxy Parties shall have duly executed and delivered the Proxy
Agreement.

    

               (h)           The
Company shall have reserved out of its authorized and unissued Common Stock,
solely for the purpose of effecting exercise of the Investor Warrants, that
number of shares of Common Stock as shall be equal to 100% of the number of shares
of Common Stock required to effect the exercise of all the Investor Warrants to
be outstanding immediately following the Closing Date.

    

    (i)           The
Subscriber shall have received the Opinion.

    

               (j)           The
Subscriber shall have completed a due diligence review of the Company to their
sole satisfaction.

    

    At any
Subsequent Closing for Additional Shares, each of the Additional Shares and
Investor Warrants as well as a new Opinion, shall be delivered and the foregoing
agreements shall be amended and restated as necessary and delivered to
Subscriber reflecting the Additional Shares and additional Investor Warrants
(provided that no additional Escrow Shares need be deposited).

    

    11.           Miscellaneous.

    

               (a)           Notices. All notices,
demands, requests, consents, approvals, and other communications required or
permitted hereunder shall be in writing and, unless otherwise specified herein,
shall be (i) personally served, (ii) deposited in the mail, registered or
certified, return receipt requested, postage prepaid, (iii) delivered by
reputable air courier service with charges prepaid, or (iv) transmitted by hand
delivery, telegram, confirmed email (with a hard copy by mail or fax) or
facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other
communication required or permitted to be given hereunder shall be deemed
effective (i) upon hand delivery or delivery by facsimile, with accurate
confirmation generated by the transmitting facsimile machine, at the address or
number designated below (if delivered on a business day during normal business
hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (ii) on the second business day
following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever
shall first occur. The addresses for such communications shall be:

    

    
      	
              If to the Company, to:

               

              Davi
      Skin, Inc.

               

            	
              If to the Subscriber, to:

               

               

            

    

    

               (b)           Entire Agreement;
Assignment. This Agreement and other documents delivered in connection
herewith represent the entire agreement between the parties hereto with respect
to the subject matter hereof. No right or obligation of the Company shall be
assigned without prior notice to and the written consent of the
Subscriber.

    

               (c)           Amendments; Waivers; No
Additional Consideration. No provision of this Agreement may be waived or
amended except in a written instrument signed by the Company and the Subscribers
(or transferees of Securities) holding a majority in interest of the Preferred
Stock, or upon execution hereof by Existing Investors desiring to exercise their
Participation Rights. 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.

    

               (d)           Counterparts/Execution.
This Agreement may be executed in any number of counterparts and by the
different signatories hereto on separate counterparts, each of which, when so
executed, shall be deemed an original, but all such counterparts shall
constitute but one and the same instrument. This Agreement may be executed by
facsimile signature and delivered by facsimile transmission.

    

               (e)           Law Governing this
Agreement. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York without regard to conflicts of
laws principles that would result in the application of the substantive laws of
another jurisdiction. Any action brought by either party against the other
concerning the transactions contemplated by this Agreement shall be brought only
in the state courts of New York or in the federal courts located in the state of
New York. The parties and the individuals executing this Agreement and other
agreements referred to herein or delivered in connection herewith on behalf of
the Company agree to submit to the jurisdiction of such courts and waive trial
by jury. The prevailing party shall be entitled to recover from the other party
its reasonable attorney’s fees and costs. In the event that any provision of
this Agreement or any other agreement delivered in connection herewith is
invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of
law. Any such provision which may prove invalid or unenforceable under any law
shall not affect the validity or enforceability of any other provision of any
agreement.

    

               (f)           Specific Enforcement,
Consent to Jurisdiction. The Company and Subscribers acknowledge and
agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that the
parties shall be entitled to one or more preliminary and final injunctions to
prevent or cure breaches of the provisions of this Agreement and to enforce
specifically the terms and provisions hereof, this being in addition to any
other remedy to which any of them may be entitled by law or equity. Subject to
Section 13(e) hereof, each of the Company, Subscriber and any signatory hereto
in his personal capacity hereby waives, and agrees not to assert in any such
suit, action or proceeding, any claim that it is not personally subject to the
jurisdiction in New York of such court, that the suit, action or proceeding is
brought in an inconvenient forum or that the venue of the suit, action or
proceeding is improper. Nothing in this Section shall affect or limit any right
to serve process in any other manner permitted by law.

    

               (g)           Independent Nature of
Subscribers. The Company acknowledges that the obligations of each
Subscriber under this Agreement are several and not joint with the obligations
of any other Subscriber, and no Subscriber shall be responsible in any way for
the performance of the obligations of any other Subscriber under this Agreement.
The Company acknowledges that each Subscriber has represented that the decision
of each Subscriber to purchase Securities has been made by such Subscriber
independently of any other Subscriber or other person of entity and
independently of any information, materials, statements or opinions as to the
business, affairs, operations, assets, properties, liabilities, results of
operations, condition (financial or otherwise) or prospects of the Company which
may have been made or given by any other Subscriber or by any agent or employee
of any other Subscriber, and no Subscriber or any of its agents or employees
shall have any liability to any other Subscriber (or any other person) relating
to or arising from any such information, materials, statements or opinions. The
Company acknowledges that nothing contained in this Agreement, and no action
taken by any Subscriber pursuant hereto or thereto shall be deemed to constitute
the Subscribers as a partnership, an association, a joint venture or any other
kind of entity, or create a presumption that the Subscribers are in any way
acting in concert or as a group with respect to such obligations or the
transactions contemplated by this Agreement. The Company acknowledges that each
Subscriber shall be entitled to independently protect and enforce its rights,
including without limitation, the rights arising out of this Agreement, and it
shall not be necessary for any other Subscriber to be joined as an additional
party in any proceeding for such purpose.  The Company and each
Subscriber acknowledges that it has elected to provide all Subscribers with the
same terms and this Agreement for the convenience of the Company and not because
Company was required or requested to do so by the Subscribers. The Company
acknowledges that such procedure with respect to this Agreement in no way
creates a presumption that the Subscribers are in any way acting in concert or
as a group with respect to this Agreement uments or the transactions
contemplated hereby.

    

               (h)           Business/Calendar
Days. Unless otherwise indicated, references to days in this Agreement
will refer to calendar days.

    

               (i)           Termination.                                In
the event that the Closing shall not have occurred with respect to the on or
before ten (10) business days from the date hereof due to the Company’s or the
Subscribers’ failure to satisfy the conditions set forth in Sections 11 and 12
above (and the non-breaching party’s failure to waive such unsatisfied
condition(s)), the non-breaching party shall have the option to terminate this
Agreement with respect to such breaching party at the close of business on such
date without liability of any party to any other party.

    

    

    [THE
REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LIST
OF EXHIBITS & SCHEDULES

    Exhibits

    Exhibit
A                      Certificate
of Designation

    Exhibit
B                      Form
of Investor Warrant

    Exhibit
C                      Registration
Rights Agreement

    Exhibit
D                      Escrow
Agreement

    Exhibit
E                      Form
of Irrevocable Voting Proxy and Trust Agreement

    

    Schedule
1.3               Use
of Proceeds

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     SIGNATURE
PAGE TO SUBSCRIPTION AGREEMENT

    

               The
parties hereby acknowledge their acceptance of the foregoing Subscription
Agreement by signing and returning a copy to the undersigned whereupon it shall
become a binding agreement between us.

    

    
      	 
      	
              COMPANY

               

              DAVI
      SKIN, INC.

              a
      Nevada corporation

               

              /s/ Jan Wallace

              _________________________

              By:
      Jan Wallace

              Its:
      President and Chief Executive Officer

            
	 
      	
               

              SUBSCRIBER

               

               

               

              _________________________

              By:
      

              Its:20-F

Exhibit 4.3  

Magic Software
Enterprises Ltd. 
2007 INCENTIVE
COMPENSATION PLAN  

Magic  Software  Enterprises  Ltd.,
 an Israeli  corporation,  has  adopted the "Magic  Software  Enterprises  Ltd.  2007
Incentive  Compensation  Plan" for the benefit of employees,  Non-Employee  Directors,
 officers and  Consultants  of the Company and any Subsidiaries and Affiliates thereof,
as follows: 

ARTICLE I. 
ESTABLISHMENT;
PURPOSES; AND DURATION 

1.1 Establishment of the Plan.
The Company hereby establishes this Plan, as set forth in this document. The Plan permits
the grant of Stock Options, Restricted Stock, Restricted Stock Units, and Performance
Awards. The Plan was adopted by the Board of Directors on August 7, 2007 and shall become
effective immediately following such Adoption Date, provided that the Plan is approved
by the holders of a majority of the outstanding Shares of the Company within twelve (12)
months following such Effective Date. If the Plan is not so approved by the Company’s
shareholders, the Plan shall not become effective, shall terminate immediately, and any
Awards previously granted thereunder shall thereupon be automatically canceled, expired,
and deemed to have been null and void. The Plan shall remain in effect as provided in
Article XI below.  

1.2. Purposes
of the Plan. The purposes of the Plan are: (i) to provide           incentives to
Non-Employee Directors, officers, Employees and Consultants of the           Company, its
Subsidiaries and its Affiliates, whose substantial contributions           are essential
to the continued growth and success of the business of the           Company; (ii) to
strengthen the Participants’ commitment to the Company;           (iii) to attract
and retain competent and dedicated individuals whose efforts           will result in the
long-term growth and profitability of the Company; and (iv)           to align the
interests of such Participants with the interests of the           shareholders of the
Company.  

ARTICLE II 
DEFINITIONS 

Wherever used in the Plan,
capitalized terms shall have the meanings set forth below: 

2.1. “Affiliate” means
any entity other than the Company and any           Subsidiary that is affiliated with
the Company through stock or equity ownership           or otherwise, and is designated
as an Affiliate for the purposes of the Plan by           the Committee.  

2.2. “Adoption
Date” means August 7, 2007 – the date the Plan           was adopted by the
Board of Directors of the Company.  

2.3. “Award” means,
individually or collectively, a grant under the           Plan of Stock Options,
Restricted Stocks, Restricted Stock Units, or Performance           Awards.  

2.4. “Award
Agreement” means either:  

1

        (a) a
written agreement entered into by the Company and a Participant setting forth
          the terms and provisions applicable to such Award, or  

        (b) a
written or electronic statement issued by the Company to a Participant, and
          approved by the participant’s electronic signature, setting forth the
terms           and provisions applicable to such Award.  

2.5.    “Beneficial
Ownership” (including correlative terms) shall have           the meaning
ascribed to such term in Rule 13d-3 promulgated under the Exchange           Act.  

2.6.  “Board” or
“Board of Directors” means the           Board of Directors of Magic
Software Enterprises Ltd., or its successor           company, as the case may be.  

2.7.    “Cause” means
Termination due to (i) breach of the           Participant’s duty of loyalty
towards the Company, or (ii) breach of           the Participant’s duty of care
towards the Company, or (iii) the           commission any flagrant criminal offense
by the Participant, or (iv) the           commission of any act of fraud,
embezzlement or dishonesty towards the Company           by the Participant, or (v) any
unauthorized use or disclosure by the           Participant of confidential information
or trade secrets of the Company, or (vi)           any other intentional misconduct by
the Participant (by act or omission)           adversely affecting the business or
affairs of the Company in a material manner,           or (vii) any act or omission by
the Participant which would allow for the           Termination of the Participant’s
employment without severance pay,           according to any applicable law.  

2.8.  “Company” means
Magic Software Enterprises Ltd., an           Israeli corporation, and its
Subsidiaries and Affiliates – unless the           context implies otherwise.  

2.9.       “Corporate
Transaction” means the occurrence, in a single           transaction or in a
series of related transactions, of any one or more of the           following events:  

		     (i)        a
sale or other disposition of all or substantially all, as determined by the
          Board in its discretion, of the consolidated assets of the Company and its
          Subsidiaries;  

		    (ii)        a
sale or other disposition of at least eighty percent (80%) of the outstanding
          securities of the Company;  

		    (iii)        a
merger, consolidation or similar transaction following which the Company is           not
the surviving corporation; or  

		    (iv)        a
merger, consolidation or similar transaction following which the Company is           the
surviving corporation but the Ordinary Shares of the Company outstanding
          immediately preceding the merger, consolidation or similar transaction are
          converted or exchanged by virtue of the merger, consolidation or similar
          transaction into other property, whether in the form of securities, cash or
          otherwise.  

        Whether
a transaction is a “Corporate Transaction” as defined above, shall be finally
and conclusively determined by the Committee in its absolute discretion. 

2.10.  “Committee” means
the Option Committee of the Board of           Directors or a subcommittee thereof, or
such other committee designated by the           Board to administer the Plan.  

2

2.11.           “Consultant” means
an independent contractor who performs           services for the Company or a Subsidiary
or Affiliate in a capacity other than           as an Employee or Director.  

2.12.  “Director” means
any individual who is a member of the Board of           Directors of the Company or one
of its Subsidiaries or Affiliates.  

2.13  “Disability”
means the inability to engage in any substantial gainful occupation for which the
Participant is suited by education, training or experience, by reason of any medically
determinable physical or mental impairment that is expected to result in such
person’s death or to continue for a period of six (6) consecutive months or
more. 

     2.14.
          “Effective Date” means the date immediately following the
          Adoption Date, in which the plan shall become immediately effective, subject to
          the terms provided in Article I above. 

2.15.  “Employee” means
any person designated as an employee of the           Company on the payroll records
thereof (including an individual who is serving           as a director or an office
holder).  

2.16.      “Exchange
Act” means the Securities Exchange Act of 1934, as           may be amended from
time to time, including the rules and regulations           promulgated thereunder, and
any successor provisions, rules and regulations           thereto.  

2.17.       “Fair
Market Value” means (a) if the Shares are traded on an           established
securities market, the closing price of the Shares as reported by           such market
for the last trading day before the relevant date, or (b) if the           Shares are not
traded on an established securities market, the value of the           Shares as
determined by the Committee by the reasonable application of a           reasonable
valuation method consistently applied, as the Committee deems           appropriate.  

2.18.   “Insider” means
an individual who is, on the relevant date, an           officer, director or ten percent
(10%) Beneficial Owner of any class of the           Company’s equity securities
that is registered pursuant to Section 12 of           the Exchange Act, as determined by
the Committee in accordance with Section 16           of the Exchange Act.  

2.19.     “Non-Employee
Director” means a Director who is not an           Employee.  

2.20.    “Notice” means
notice provided by a Participant to the Company           in a manner prescribed by the
Committee.  

2.21.     “Option” or
“Stock Option” means a Stock           Option, as described in Article
VI.  

2.22.         “Option
Price” means the price at which a Share may be           purchased by a
Participant pursuant to an Option.  

2.23.     “Participants” mean
Non-Employee Directors, officers,           Employees, Consultants and any other eligible
individuals, who hold one or more           outstanding Awards (as set forth in Article
V).  

2.24.       “Performance
Award” means an Award which vesting or waiver of           restrictions, as the
case may be, is subject to certain performance conditions.  

3

2.25.  “Period
of Restriction” means the period during which Shares of           Restricted
Stock are subject to substantial risk of forfeiture and to           limitations on its
transfer, as provided in Article VII, or Restricted Stock           Units are subject to
a vesting period, as the case may be.  

2.26.       “Person” means
“person” as such term is used for           purposes of Section 13(d) or 14(d)
of the Exchange Act, including any           individual, corporation, limited liability
company, partnership, trust,           unincorporated organization, government or any
agency or political subdivision           thereof, or any other entity or any group of
persons.  

2.27 "Plan" means the "Magic
Software Enterprises Ltd. 2007 Incentive Compensation Plan".  

2.28.         “Prior
Option Plans” means the Company’s 1991 Stock Option           Plan and 2000
Stock Option Plan.  

2.29.           “Restricted
Stock” or “RS” means an Award           granted to a
Participant pursuant to Article VII.  

2.30.          “Restricted
Stock Unit” or “RSU” means an           Award granted to a
Participant pursuant to Article VII.  

2.31.        “Rule
16b-3” means Rule 16b-3 under the Exchange Act, or any           successor rule,
as may be amended from time to time.  

2.32.  “Sale” means
the sale of all or substantially all of the issued and outstanding share capital of Magic
Software Enterprises Ltd. Whether “all or substantially all of the issued and
outstanding share capital of Magic Software Enterprises Ltd.” is to be sold,
shall be finally and conclusively determined by the Board in its absolute discretion.  

2.33.           “Share” means
an Ordinary Share of Magic Software Enterprises           Ltd., par value NIS 0.10
per share, (subject to adjustments as set forth           in Article X below).  

2.34.           “Subsidiary” means
any present or future corporation, which is,           or would be, a “subsidiary
corporation” of the Company as determined           by the Committee.  

2.35.      “Successor
Entity Award” means securities of any successor           entity, as provided in
Section Article X below.  

2.36.      “Termination” means
the time when a Participant ceases to be           employed by, or to provide services
to, the Company, any Affiliate or           Subsidiary, as applicable, for any reason,
with or without Cause, including a           Termination by resignation, discharge,
death, Disability or retirement, but           excluding (a) a Termination where there is
a simultaneous reemployment (or           commencement of service) or continuing
employment (or service) of a Participant           by the Company, Affiliate or any
Subsidiary, and (b) at the discretion of the           Committee, a Termination of an
Employee that is immediately followed by the           Participant’s service as a
Non-Employee Director.  

2.37. “Termination
Date” means (i) the date on which the           employee-employer relationship
between the Participant and the Company ceases to           exist, or (ii) if the
Participant is a contractor or Consultant – the date           on which the
consulting or contractor agreement between the Participant and the           Company
expires, or the date on which either of the parties to such agreement           sends the
other notice of its intention to terminate said agreement, or (iii) if           the
Participant is a Director – the date on which the Participant ceases to
          serve as a director of the Company.  

4

2.38.    “Voting
Securities” shall mean, with respect to any Person that           is a
corporation, all outstanding voting securities of such Person entitled to           vote
generally in the election of the board of directors of such Person.  

ARTICLE III. 
ADMINISTRATION 

3.1. General.
The Committee shall have exclusive authority to operate, manage           and administer
the Plan in accordance with its terms and conditions.           Notwithstanding the
foregoing, in its absolute discretion, the Board may at any           time and from time
to time exercise any and all rights, duties and           responsibilities of the
Committee under the Plan, including establishing           procedures to be followed by
the Committee. In addition, if and to the extent           that a Committee is not
established, or does not or cannot function, the Board           may take any action
under the Plan that would otherwise be the responsibility of           the Committee,
subject to the limitations of any applicable law (in such event           the term
Committee shall mean the Board, wherever used).  

        Without
derogating from the powers of the Committee, the Board shall have the power and authority
to change, in respect of certain participants, the definition of the terms defined in
Article II above, including without limitation, the definition of the terms ‘Corporate
Transaction’ and ‘Cause’.  

3.2. Committee.
The members of the Committee shall be appointed from time to           time by, and shall
serve at the discretion of, the Board of Directors.  

3.3. Authority
of the Committee. The Committee shall have full discretionary           authority to
grant or, when so restricted by applicable law, recommend the           Board to grant, pursuant
to the terms of the Plan, Awards to those           individuals who are eligible to
receive Awards under the Plan. Except as limited           by law or by the Articles of
Association of the Company, and subject to the           provisions herein, the Committee
shall have full power, in accordance with the           other terms and provisions of the
Plan, to:  

		    (a)        select
Employees, Non-Employee Directors and Consultants who may receive Awards           under
the Plan and become Participants;  

		    (b)        determine
eligibility for participation in the Plan and decide all questions           concerning
eligibility for, and the amount of, Awards under the Plan;  

		    (c)        determine
the sizes and types of Awards;  

		    (d)        determine
the terms and conditions of Awards, including the Option Prices of           Options, the
terms under which the Awards shall vest and becomes exercisable,           including in
connection with performance conditions, etc;  

		    (e)        grant
Awards as an alternative to, or as the form of payment for, grants or           rights
earned or payable under, other bonus or compensation plans, arrangements           or
policies of the Company or a Subsidiary or Affiliate;  

		    (f)        grant
substitute Awards on such terms and conditions as the Committee may           prescribe;  

5

		    (g)        ;make
all determinations under the Plan concerning Termination of any           Participant’s
employment or service with the Company or a Subsidiary or           Affiliate, including
whether such Termination occurs by reason of Cause,           Disability, retirement or
in connection with a Corporate Transaction, if           applicable, and whether a leave
constitutes a Termination;  

		    (h)        construe
and interpret the Plan and any agreement or instrument entered into           under the
Plan, including any Award Agreement;  

		    (i)        establish
and administer any performance goals in connection with any Awards,           including
performance criteria and applicable performance periods if applicable,
          determine the extent to which any performance goals and/or other terms and
          conditions of an Award are met (or are not met);  

		    (j)        establish,
adopt, amend, waive and/or rescind rules, regulations, procedures,           guidelines,
forms and/or instruments for the Plan’s operation or           administration;  

		    (k)        make
all valuation determinations relating to Awards and the payment or           settlement
thereof;  

		    (l)        waive
restrictions and limitations, or accelerate the vesting or exercisability           of
any Award;  

		    (m)        offer
to buy-out an Award previously granted, based on such terms and conditions           as
the Committee shall establish with, and communicate to, the Participant at           the
time such offer is made;  

		    (n)        determine
whether, and to what extent, and under what circumstances, Awards may           be
settled in cash, Shares or other property or canceled or suspended; and  

		    (o)        exercise
all such other authorities, take all such other actions and make all           such other
determinations as it deems necessary or advisable for the proper           operation
and/or administration of the Plan.  

     3.4.
          Award Agreements. The Committee shall, subject to applicable laws and
          rules, determine the date an Award is granted, provided, however, that such date
          shall not be prior to the date such grant is approved by the Board. Each Award
          shall be evidenced by an Award Agreement; however, two or more Awards granted to
          a single Participant may be combined in a single Award Agreement. 

     3.5.
          Discretionary Authority; Decisions Binding. The Committee shall have full
          discretionary authority in all matters related to the discharge of its
          responsibilities and the exercise of its authority under the Plan. To the extent
          permitted by applicable law, all determinations, decisions, actions and
          interpretations made by the Committee with respect to the Plan and any Award
          Agreement, and all related orders and resolutions of the Committee shall be
          final, conclusive and binding on all Participants, the Company and its
          shareholders, any Subsidiary or Affiliate and all persons having or claiming to
          have any right or interest in or under the Plan and/or any Award Agreement. 

6

ARTICLE IV.
SHARES SUBJECT
TO THE PLAN 

4.1. Number
of Shares Available for Grants. The Shares subject to the Plan may be
either authorized and unissued shares or previously issued shares acquired by
the Company, or any Subsidiary. Subject to adjustment as provided in Article X,
the total number of Shares that may be delivered pursuant to Awards under the
Plan and under the Company’s Prior Option Plans shall not exceed 2,775,000 Shares
in the aggregate. The Company shall reserve at all times sufficient number of
Shares for the purposes of granting Awards under the plan.  

4.2.   If any Awards shall expire,
terminate, cancel or be forfeited, as the case may be, without having been fully
exercised or satisfied by the issuance of Shares – then the Shares subject to such
Award shall be available again for delivery in connection with future Awards under the
Plan.  

ARTICLE V.
ELIGIBILITY
AND PARTICIPATION 

5.1.  Eligibility.
Employees, Directors, Non-Employee Directors and Consultants           shall be eligible
to become Participants and receive Awards in accordance with           the terms and
conditions of the Plan.  

5.2.  Actual
Participation. Subject to the provisions of the Plan and to any           applicable
law, the Committee may, from time to time, select Participants from           all
eligible Employees, Directors, Non-Employee Directors, and Consultants, and
          shall determine the nature and amount of each Award (as further detailed in
          Article III above).  

ARTICLE VI.
STOCK OPTIONS 

6.1. Grant of Options.
Subject to the terms and provisions of the Plan,           Options may be granted to
Participants, in such number, and upon such terms, and           at any time, and from
time to time, as shall be determined by the Committee. The           Committee may grant
an Option or provide for the grant of an Option, either from           time to time in
the discretion of the Committee or, automatically upon the           occurrence of
specified events, including the achievement of performance goals,           the
satisfaction of an event or condition within the control of the recipient of
          the Option, or within the control of others.  

6.2.  Award
Agreement. Each Option grant shall be evidenced by an Award           Agreement that
shall specify the Option Price, the maximum duration of the           Option, the number
of Shares to which the Option pertains, the conditions upon           which the Option
shall become exercisable and such other provisions as the           Committee shall
determine, which are not inconsistent with the terms of the           Plan.  

6.3  Option
Price. The Option Price for each Option shall be determined by the
          Committee and set forth in the Award Agreement. Unless determined otherwise by
          the Board, the Option Price shall be equal to, or higher than, the Fair Market
          Value of the Company’s shares.  

6.4.  Duration
of Options. Each Option granted to a Participant shall expire at           such time
as the Committee shall determine at the time of grant and set forth in           the
Award Agreement; provided, however, that no Option shall be exercisable           later
than the tenth (10th) anniversary of its date of           grant.  

7

6.5.  Exercise
of Options. Options shall be exercisable at such times and be           subject to
such restrictions and conditions as the Committee shall in each           instance
determine and set forth in the Award Agreement, which need not be the           same for
each grant or for each Option or Participant.  Unless determined           otherwise by
the Committee, the vesting period pursuant to which such Options           shall vest,
shall be such that all Options shall be fully vested on the first           business day
following the passing of four (4) years from their date of           grant, such
that 25% of the Awards shall vest on each of the first,           second, third,
and fourth anniversaries of their date of grant.  

6.6. Payment. Options shall
be exercised by the delivery of a written notice           of exercise to the Company, in
a form specified or accepted by the Committee, or           by complying with any
alternative exercise procedures that may be authorized by           the Committee,
setting forth the number of Shares with respect to which the           Option is to be
exercised, accompanied by full payment of the aggregate Option           Price for such
Shares, which shall include applicable taxes, if any, in           accordance with
Article XII. The Option Price upon exercise of any Option shall           be payable to
the Company in full either: (a) in cash or its equivalent; or (b)           by any other
method approved or accepted by the Committee in its sole           discretion, including,
if the Committee so determines, (x) a cashless           (broker-assisted) exercise that
complies with all applicable laws, or (y)           withholding of Shares otherwise
deliverable to the Participant pursuant to the           Option, having an aggregate Fair
Market Value at the time of exercise, equal to           the total Option Price, and (z)
a “net exercise”, that complies with           all applicable laws.  

6.7.  Rights as a Shareholder.
No Participant or other person shall become the           owner of any Shares subject to
an Option, nor have any rights to dividends or           other rights of a shareholder
with respect to any such Shares, until the           Participant has actually received
such Shares following exercise of his or her           Option in accordance with the
provisions of the Plan and the applicable Award           Agreement.  

6.8.  Termination
of Employment or Service. Except as otherwise provided in           the Award
Agreement and/or determined by the Committee, an Option shall           cease to
become exercisable upon Termination of the Participant thereof.  

        6.8.1
Employees. Notwithstanding the foregoing and unless determined otherwise by the
Committee, in the event of Termination, all Options theretofore granted to such
Participant when such Participant was an Employee of the Company, shall terminate as
follows:  

		    (a)        All
such Options that are not vested on the Termination Date shall terminate
          immediately.  

		    (b)        If
the Participant’s Termination is by reason of such Participant’s
          death or Disability, such Options (to the extent vested at the Terminations
          date) shall be exercisable by the Participant or the Participant’s
          guardian, legal representative, estate or other person to whom the
          Participant’s rights are transferred by will or by laws of descent or
          distribution, at any time until the lapse of twelve (12) months from the
          Termination Date (but in no event after the expiration date of such Options),
          and shall thereafter terminate.  

		    (c)                  If
the Participant’s Termination is due to any reason other than those           stated
in Sections 6.8.1(b), and 10.1(d) herein, such Options (to the extent           vested on
the Terminations date) shall be exercisable at any time until the           lapse of three
(3) months from the Termination Date (but in no event           after the expiration
date of such Options), and shall thereafter terminate; provided, however,
that if the Participant dies within such           period, such Options (to the extent
vested on the Termination Date) shall be           exercisable by the Participant’s
legal representative, estate or other           person to whom the Participant ‘s
rights are transferred by will or by laws           of descent or distribution at any
time until the lapse of twelve (12)           months from the Termination Date
(but in no event after the expiration date           of such Options), and shall
thereafter terminate.  

8

		    (d)        Notwithstanding
the aforesaid, if the Participant’s Termination is for           Cause, all the
Options whether vested or not shall ipso facto expire           immediately and be
of no legal effect.  

		    (e)        Whether
a Termination is by reason of “Disability” for the purposes of
          paragraph 6.8.1(b) hereof, or is a Termination other than by reason of
such           Disability, or is for Cause as set forth in paragraph 6.8.1(d)
hereof,           shall be finally and conclusively determined by the Committee in its
absolute           discretion.  

		    (f)        Notwithstanding
the aforesaid, under no circumstances shall any Option be           exercisable after the
specified expiration of the term of such Option.  

        6.8.2
Directors, Consultants and Contractors. In the event that a Participant, who is a
director, consultant or contractor of the Company, ceases, for any reason, to serve as
such, the provisions of Sections 6.8.1(a), 6.8.1(b), 6.8.1(c), 6.8.1(d), 6.8.1(e) and
6.8.1(f) above shall apply, mutatis mutandis.  

        6.8.3
Notwithstanding the foregoing provisions of this Section 6.8, the Committee shall
have the discretion, exercisable either at the time an Option is granted or thereafter,
to:  

		    (a)        Extend
the period of time for which the Option is to remain exercisable           following the
Termination Date to such greater period of time, as the Committee           shall deem
appropriate, but in no event beyond the specified expiration of the           term of the
Option; and/or  

		    (b)        Permit
the Option to be exercised, during the applicable exercise period           following the
Termination Date, not only with respect to the number of Shares           for which such
Option is exercisable at the Termination Date but also with           respect to one or
more additional installments in which the Participant would           have vested under
the Option had the Participant continued in the employ or           service of the
Company.  

ARTICLE VII.
RESTRICTED
STOCK AND RESTRICTED STOCK UNITS 

7.1. Awards of Restricted Stock
and Restricted Stock Units. Subject to the           terms and provisions of the
Plan, the Committee, at any time and from time to           time, may grant Shares of
Restricted Stock and/or Restricted Stock Units to           Participants in such amounts,
as the Committee shall determine. Subject to the           terms and conditions of this
Article VII and the Award Agreement, upon delivery           of Shares of Restricted
Stock to a Participant, or creation of a book entry           evidencing a Participant’s
ownership of Shares of Restricted Stock,           pursuant to Section 7.6, the
Participant shall have all of the rights of a           shareholder with respect to such
Shares, subject to the terms and restrictions           set forth in this Article VII or
the applicable Award Agreement or as determined           by the Committee. Restricted
Stock Units shall be similar to Restricted Stock,           except no Shares are actually
awarded to a Participant who is granted Restricted           Stock Units on the date of
grant, and such Participant shall have no rights of a           shareholder with respect
to such Restricted Stock Units.  

7.2.  Award
Agreement. Each Restricted Stock and/or Restricted Stock Unit Award           shall
be evidenced by an Award Agreement that shall specify the Period of
          Restriction, the number of Shares of Restricted Stock or the number of
          Restricted Stock Units granted, and such other terms and provisions as the
          Committee shall determine in accordance with the Plan. Unless determined
          otherwise by the Board, the Restricted Stock and/or Restricted Stock Unit Award
          shall not be purchased for less than the Share’s par value.  

9

7.3. Non-Transferability of
Restricted Stock/Restricted Stock Unit. Except as           provided in this Article
VII, Restricted Stock and Restricted Stock Units may           not be sold, transferred,
pledged, assigned, encumbered, alienated, hypothecated           or otherwise disposed of
until the end of the applicable Period of Restriction           established by the
Committee and specified in the Restricted Stock Award           Agreement/Restricted
Stock Unit Award Agreement.  

7.4.  Period
of Restriction and Other Restrictions. The Period of Restriction           shall
lapse based on continuing service or employment, as the case may be, as a
          Non-Employee Director, Employee, Director or Consultant, of the Company, the
          achievement of performance goals, the satisfaction of other conditions or
          restrictions or upon the occurrence of other events, in each case, as
determined           by the Committee, at its discretion, and stated in the Award
Agreement.  

7.5. Delivery
of Shares, Payment of Restricted Stocks/Restricted Stock Units.           Subject to
Section 14.5, after the last day of the Period of Restriction           applicable to a
Participant’s Shares of Restricted Stock/Restricted Stock           Units, and after
all conditions and restrictions applicable to such Shares of           Restricted
Stock/Restricted Stock Units have been satisfied or lapsed (including
          satisfaction of any applicable tax withholding obligations), pursuant to the
          applicable Award Agreement, such Shares of Restricted Stock shall become freely
          transferable by such Participant, and, such Restricted Stock Units shall be
          settled by an automatic delivery of Shares.  

7.6. Certificates
of Restricted Stock Awards. Each Participant who receives an           Award of
Shares of Restricted Stock shall be issued a stock certificate or           certificates
evidencing the Shares covered by such Award registered in the name           of such
Participant, or on his behalf, as applicable. Such certificate(s) may           contain
appropriate legends or other limitations, as required under any           applicable law,
pursuant to the conclusive determination and consideration of           the Secretary of
the Company.  

7.7. Voting
Rights of Restricted Stocks. Unless otherwise determined by the           Committee
and set forth in a Participant’s Award Agreement, to the extent           permitted
or required by law, as determined by the Committee, Participants           holding Shares
of Restricted Stock may be granted the right to exercise full           voting rights
with respect to those Shares during the Period of Restriction. A           Participant
shall have no voting rights with respect to any Restricted Stock           Units.  

7.8. Dividends
and Other Distributions. During the Period of Restriction,           Participants
holding Shares of Restricted Stock shall be credited with any cash           dividends
paid with respect to such Shares while they are so held, unless           determined
otherwise by the Committee and set forth in the Award Agreement. The           Committee
may apply any restrictions to such dividends that the Committee deems
          appropriate. Except as set forth in the Award Agreement, in the event of any
          shares or securities are received as a stock-dividend of Shares of Restricted
          Stock, any new or additional Shares or securities shall be subject to the same
          terms and conditions, including the Period of Restriction, as relate to the
          original Shares of Restricted Stock.  

7.9. Termination
of Employment or Service. Except as otherwise provided in           this Section 7.9,
during the Period of Restriction, any Shares of Restricted           Stock held by a
Participant shall be forfeited and revert to the Company and, in           the case of
RSUs, any RSUs held by a Participant shall expire, upon the           Participant’s
Termination or the failure to meet or satisfy any applicable           performance goals
or other terms, conditions and restrictions to the extent set           forth in the
applicable Award Agreement. Each applicable Award Agreement in           connection with
RS/RSU, shall set forth the extent to which, if at all, the           Period of
Restrictions shall continue to be counted, following such           participant’s
Termination of employment or service. Such provisions shall           be determined in
the sole discretion of the Committee, shall be included in the           applicable Award
Agreement, need not be uniform among all such Awards issued           pursuant to the
Plan, and may reflect distinctions based on the reasons for, or           circumstances
of, such Termination.  

10

ARTICLE VIII.
TRANSFERABILITY
OF AWARDS; BENEFICIARY DESIGNATION 

8.1  Unless determined otherwise by
the Committee, no Award shall be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated by the Participant to whom granted, otherwise than by will or
the laws of descent and distribution, and an Options may be exercised and/or a RSU may
vest, and/or restrictions pursuant to a RS may be waived, during the lifetime of the
Participant, only by such Participant or by such Participant’s guardian or legal
representative. The terms of such Award shall be binding upon the beneficiaries,
executors, administrators, heirs and successors of such Participant. 

8.2  Underwriter’s
Lock-up. The Participant’s rights to sell Shares may be subject to certain
limitations (including a lock-up period), as will be requested by the Company or its
underwriters, from time to time, or upon a specific occurrence, and the Participant
unconditionally agrees and accepts any such limitations. 

ARTICLE IX.
RIGHTS  OF
PARTICIPANTS 

9.1. Rights or Claims. No
individual shall have any rights or claims under the           Plan except in accordance
with the provisions of the Plan and any applicable           Award Agreement. Without
limiting the generality of the foregoing, nothing           contained in the Plan or in
any Award Agreement shall be deemed to:  

		    (a)        Give
any Employee, Director, or Non-Employee Director or Consultant the right to           be
retained in the service of the Company, or provide service to the Company, as
          the case may be, an Affiliate and/or a Subsidiary, whether in any particular
          position, at any particular rate of compensation, for any particular period of
          time or otherwise;  

		    (b)        Restrict
in any way the right of the Company, an Affiliate and/or a Subsidiary           to
terminate, change or modify any Employee’s employment or any           Non-Employee
Director’s service as a Director at any time with or without           Cause.  

9.2. Adoption of the Plan.
The adoption of the Plan shall not be deemed to           give any Employee, Non-Employee
Director or Consultant or any other individual           any right to be selected as a
Participant or to be granted an Award, or, having           been so selected, to be
selected to receive a future Award.  

9.3.  Vesting.
Notwithstanding any other provision of the Plan, unless           determined otherwise by
the Committee, a Participant’s right or entitlement           to exercise or
otherwise vest in any Award not exercisable or vested at the time           of grant
shall only result from continued services as a Non-Employee Director or
          Consultant or continued employment as an Employee, as the case may be, with the
          Company or any Subsidiary or Affiliate, or satisfaction of any other
performance           goals or other conditions or restrictions applicable, by its terms,
to such           Award.  

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9.4.  No
Effects on Benefits. Payments and other compensation received by a
          Participant under an Award are not part of such Participant’s normal or
          expected compensation or salary for any purpose, including calculating
          termination, indemnity, severance, resignation, redundancy, end of service
          payments, bonuses, long-service awards, pension or retirement benefits or
          similar payments under any laws, plans, contracts, arrangements or otherwise.  

ARTICLE X. 
ADJUSTMENTS 

10.1. Adjustments in Authorized
Shares. In the event of any reclassification,           recapitalization, merger or
consolidation, reorganization, stock dividend or           other distribution in
securities of the Company, stock split or reverse stock           split, combination or
exchange of shares, repurchase of shares, or other like           change in corporate
structure, that proportionally apply to all shares of the           Company, the
Committee, shall substitute or adjust, as applicable, the number,           class and
kind of securities which may be delivered under Section 4.1; the           number, class
and kind, and/or price (such as the Option Price of Options) of           securities
subject to outstanding Awards; and other value determinations           applicable to
outstanding Awards, as determined by the Committee, in order to           prevent
dilution or enlargement of Participants’ rights under the Plan;           provided,
however, that the number of Shares subject to any Award shall always           be a whole
number. The Committee shall also make appropriate adjustments and
          modifications, as determined by the Committee, in the terms of any outstanding
          Awards to reflect such changes in the Company’s share capital, including
          modifications of performance goals and changes in the length of performance
          periods, if applicable. All determinations of the Committee as to adjustments
or           changes, if any, under this Section 10.1 shall be conclusive and binding on
the           Participants.  

10.2. Liquidation. Unless
otherwise provided by the Board, in the event of the           proposed dissolution or
liquidation of the Company, all outstanding Awards will           terminate immediately
prior to the consummation of such proposed action. In such           case, the Committee
may declare that any Award shall terminate as of a date           fixed by the Committee
and give each Participant (1) the right to exercise his           Option, including any
Option that would not otherwise be exercisable, or (2) the           right to have
his/her RSU vested, including any RSU that would not otherwise be           vested and/or
the restrictions pursuant to his RS waived.  

10.3. Corporate Transaction.  

		    (a)        In
the event of a Corporate Transaction, immediately prior to the effective date
          of such Corporate Transaction, each Award may, among other things, at the sole
          and absolute discretion of the Committee, either:  

		    (i)               Be
substituted for a Successor Entity Award such that the Participant may           exercise
the Successor Entity Award or have it vested, as the case may be, for           such
number and class of securities of the successor entity which would have           been
issuable to the Participant in consummation of such Corporate Transaction,           had
the Option been exercised or the RSU have been vested, immediately prior to           the
effective date of such Corporate Transaction, given the exchange ratio or
          consideration paid in the Corporate Transaction, the vesting of the Awards and
          such other terms and factors that the Committee determines to be relevant for
          purposes of calculating the number of Successor Entity Awards granted to each
          Participant ; or  

12

		    (ii)               Be
assumed by any successor entity such that the Participant may exercise the
          Option or have his/her RSU vest, for such number and class of securities of the
          successor entity which would have been issuable to the Participant in
          consummation of such Corporate Transaction, had the Option been exercised or
the           RSU been vested immediately prior to the effective date of such Corporate
          Transaction, given the exchange ratio or consideration paid in the Corporate
          Transaction, the vesting of the Awards and such other terms and factors that
the           Committee determines to be relevant for this purpose.  

	 	        In
the event of a clause (i) or clause (ii) action, (1) appropriate adjustments shall be
made to the Option Price per Share to reflect such action; and/or (2) the Participant
shall pay the aggregate par value of each additional Share issued to him/her in respect
of his/her RSU, if applicable.  

		    (b)        Immediately
following the consummation of the Corporate Transaction, all           outstanding
Awards shall terminate and cease to be outstanding, except to the           extent
assumed by a successor entity.  

		    (c)        Notwithstanding
the foregoing, and without derogating from the power of the           Committee pursuant
to the provisions of this Plan, the Committee shall have full           authority and
sole discretion to determine that any of the provisions of           Sections 10.4(a)(i)
or 10.4(a)(ii) above shall apply in the event of a Corporate           Transaction in
which the consideration received by the shareholders of the           Company is not
solely comprised of securities of a successor entity, or in which           such
consideration is solely cash or assets other than securities of a successor
          entity.  

10.4. Sale.
Subject to any applicable law, to the provisions of the Articles of           Association
of the Company, and to the Board’s sole and absolute           discretion, in the
event of Sale, each Participant shall be obligated to           participate in the Sale
and sell his or her Shares and/or Awards in the Company, provided, however,
that each such Share or Award shall be sold at           a price equal to that of any
other Ordinary Share sold under the Sale (and,           unless determined otherwise by
the Board, (1) in respect of Options, minus the           applicable Option Price; and
(2) in respect of RSUs, minus the par value of the           Share), while accounting for
changes in such price due to the respective terms           of any such Award, and
subject to the absolute discretion of the Board.  

10.5.  No
Limitation on Corporate Actions. The existence of the Plan and any           Awards
granted hereunder shall not affect in any way the right or power of the
          Company, any Subsidiary or any Affiliate to make or authorize any adjustment,
          recapitalization, reorganization or other change in its capital structure or
          business structure, any merger or consolidation, any issuance of debt,
preferred           or prior preference stock ahead of or affecting the Shares,
additional shares of           capital stock or other securities or subscription rights
thereto, any           dissolution or liquidation, any sale or transfer of all or part of
its assets or           business or any other corporate act or proceeding.  

ARTICLE XI.
TERM AND
AMENDMENT, MODIFICATION, AND TERMINATION 

11.1 Duration of the Plan. The
Plan shall commence on the Effective Date and terminate upon the earliest of (i) the
expiration of the ten (10) year period measured from the Effective Date, or
(ii) the termination of all outstanding Awards in connection with a Corporate
Transaction, or (iii) in connection with, and as a result of, any other relevant event,
including the Plan’s termination by the Board. All Awards outstanding at the time of
a clauses (i) and/or (iii) termination event shall continue to have full force and effect
in accordance with the provisions of the Plan and the documents evidencing such Awards.  

13

11.2  Amendments. Subject to
applicable laws and regulations, the Board in its discretion may, at any time and from
time to time, amend, alter, extend or terminate the Plan, as it deems advisable, including
without limitation, change the vesting and exercise periods. In addition, in the
event the Committee wishes to grant Awards to non-Israeli Participants, the Committee
may adopt, as part of this Plan and based on it, sub-plans, in order to comply with all
relevant and applicable laws and regulations of the country of residence of such
Participants. 

11.3  Amendments that impair
Participant’s Rights. In addition, no such amendment, alteration, suspension or
termination of the Plan or any Award theretofore granted, including any Award Agreement,
shall be made which would materially impair the previously accrued rights of a Participant
under any outstanding Award without the written consent of such Participant, provided,
however, that the Board may amend or alter the Plan and the Committee may amend or alter
any Award, including any Agreement, either retroactively or prospectively, without the
consent of the applicable Participant, (1) so as to preserve or come within any
exemptions from liability under Section 16(b) of the Exchange Act, pursuant to the rules
and releases promulgated by the SEC (including Rule 16b-3), or (2) if the Board or the
Committee determines in its discretion that such amendment or alteration either (I) is
required or advisable for the Company, the Plan or the Award to satisfy, comply with or
meet the requirements of any law, regulation, rule or accounting standard or (II) is not
reasonably likely to significantly diminish the benefits provided under such Award, or
that such diminishment has been or will be adequately compensated. 

ARTICLE XII.
TAX WITHHOLDING
AND OTHER TAX MATTERS 

12.1. Tax Withholding. The
Company and/or any Subsidiary or Affiliate are           authorized to withhold from any
Award granted or payment due under the Plan the           amount of all taxes due in
respect of such Award or payment and take any such           other actions as may be
necessary or appropriate, as determined by the           Committee, to satisfy all
obligations for the payment of such taxes. The           recipient of any payment or
distribution under the Plan shall make arrangements           satisfactory to the
Company, as determined in the Committee’s discretion,           for the satisfaction
of any tax obligations that arise by reason of any such           payment or
distribution. The Company shall not be required to make any payment           or
distribution under or relating to the Plan or any Award until such           obligations
are satisfied or such arrangements are made, as determined by the           Committee in
its discretion.  

ARTICLE XIII.
LIMITS OF
LIABILITY; INDEMNIFICATION 

13.1. Limits of Liability.  

		    (a)        None
of the Company, any Subsidiary, any Affiliate, any member of the Board or           the
Committee or any other person participating in any determination of any
          question under the Plan, or in the interpretation, administration or
application           of the Plan, shall have any liability, in the absence of bad faith,
to any party           for any action taken or not taken in connection with the Plan,
except as may           expressly be provided by statute.  

		    (b)        Subject
to any applicable law, each member of the Committee, while serving as           such,
shall be considered to be acting in his or her capacity as a Director.           Members
of the Board of Directors and members of the Committee acting under the           Plan
shall be fully protected in relying in good faith upon the advice of           counsel
and shall incur no liability in the performance of their duties.  

14

		    (c)        The
Company shall not be liable towards a Participant or any other person as to:
          (i) the non-issuance of Shares as to which the Company has been unable to
obtain           from any regulatory body having relevant jurisdiction, the authority
deemed by           the Committee or the Company’s counsel to be necessary to the
lawful           issuance and sale of any Shares hereunder, and (ii) any tax consequence
          expected, but not realized, by any Participant or other person due to the
          receipt, exercise or settlement of any Option or other Award.  

13.2. Indemnification.
Subject to the requirements of applicable law, each           individual who is or shall
have been a member of the Committee or of the Board,           or an officer of the
Company to whom authority was delegated in accordance with           Article III, shall
be indemnified and held harmless by the Company against and           from any loss,
cost, liability, or expense (including counsel fees) that may be           imposed upon
or reasonably incurred by him or her in connection with or           resulting from any
claim, action, suit, or proceeding to which he or she may be           a party or in
which he or she may be involved by reason of any action taken or           failure to act
under the Plan and against and from any and all amounts paid by           him or her in
settlement thereof.  

ARTICLE XIV. 
MISCELLANEOUS 

14.1. Participant’s
reimbursement. If the Company is required to prepare           an accounting
restatement (1) due to the material noncompliance of the Company,           as a result
of misconduct, with any financial reporting requirement under the           securities
laws, if a Participant knowingly or with gross negligence engaged in           such
misconduct, or knowingly or with gross negligence failed to prevent such
          misconduct, or if a Participant is one of the individuals subject to automatic
          forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, the
          Participant shall reimburse the Company the amount of any payment in
          settlement of an Award earned or accrued during the twelve (12) month period
          following the first public issuance or filing with the SEC (whichever just
          occurred) of the financial document embodying such financial reporting
          requirement, and (2) the Committee may in its discretion provide that if the
          amount earned under any Participant’s Award is reduced by such
restatement,           such Participant shall reimburse the Company the amount of any
such reduction           previously paid in settlement of such Award.  

14.2. Severability. In the
event any provision of the Plan shall be held           illegal or invalid for any
reason, the illegality or invalidity shall not affect           the remaining parts of
the Plan, and the Plan shall be construed and enforced as           if the illegal or
invalid provision had not been included.  

14.3. No Effect on Other Plans.
Neither the adoption of the Plan nor anything           contained herein shall affect any
other compensation or incentive plans or           arrangements of the Company or any
Subsidiary or Affiliate, or prevent or limit           the right of the Company or any
Subsidiary or Affiliate to establish any other           forms of incentives or
compensation for their directors, officers, eligible           employees or consultants
or grant or assume awards or other rights otherwise           than under the Plan.  

14.4. Section 16 of Exchange Act.
Unless otherwise stated in the Award           Agreement, notwithstanding any other
provision of the Plan, any Award granted to           an Insider shall be subject to any
additional limitations set forth in any           applicable exemptive rule under Section
16 of the Exchange Act (including Rule           16b-3) that are requirements for the
application of such exemptive rule, and the           Plan and the Award Agreement shall
be deemed amended to the extent necessary to           conform to such limitations.  

15

14.5. Requirements of Law;
Limitations on Awards.  

		    (a)        The
granting of Awards and the issuance of Shares under the Plan shall be           subject
to all applicable laws, rules, and regulations, and to such approvals by           any
governmental agencies or national securities exchanges as may be required.  

		    (b)        The
Committee may require each person receiving Shares in connection with any           Award
under the Plan to represent and agree with the Company in writing that           such
person is acquiring such Shares for investment without a view to the
          distribution thereof, and/or provide such other representations and agreements
          as the Committee may prescribe. Any such restrictions shall be set forth in the
          applicable Award Agreement, and/or the certificates evidencing such shares may
          include any legend that the Committee deems appropriate to reflect any such
          restrictions.  

14.6. Governing Law. The Plan
and, except as provided below or in an applicable           sub-plan, each Award
Agreement to a Participant shall be governed by the laws of           the State of
Israel, excluding any conflicts or choice of law rule or principle           that might
otherwise refer construction or interpretation of the Plan to the           substantive
law of another jurisdiction. Unless otherwise provided in the Award           Agreement,
Participants are deemed to submit to the exclusive jurisdiction and           venue of
the courts in Tel-Aviv, Israel, to resolve any and all issues that may           arise
out of or relate to the Plan or any related Award Agreement.  

14.7. No Fractional Shares.
No fractional Shares shall be issued upon the           exercise or payment of an Option
or other Award and any such fractions shall be           rounded to the nearest whole
number.  

14.8. Participants.
Notwithstanding any provision of the Plan to the contrary,           in order to comply
with the laws or practices of countries in which the Company,           any Affiliate,
and/or any Subsidiary operates or has Employees, Director,           Non-Employee
Directors or Consultants, the Committee, in its sole discretion,           shall have the
power and authority to: (a) Determine which Affiliates and           Subsidiaries shall
be covered by the Plan; (b) Determine which Employees,           Non-Employee Directors
and/or Consultants are eligible to participate in the           Plan; (c) Establish
sub-plans and adopt or modify exercise procedures and other           terms and
procedures, to the extent such actions may be necessary or advisable.           Any
sub-plans and modifications to Plan terms and procedures established under           this
Section 14. 8 by the Committee shall be attached to the Plan as appendices;           and
(d) Take any action, before or after an Award is made, that the Committee,           in
its discretion, deems advisable to obtain approval or comply with any           necessary
local government regulatory exemptions or approvals. Notwithstanding the above, the
Committee may not take any actions hereunder,           and no Awards shall be granted,
that would violate any applicable law. 

16

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