Document:

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this “Agreement”) is dated as of March 10,
2004 among RadView Software Ltd., an Israeli corporation (the “Company”), and the purchasers identified on
the signature pages hereto (each, a “Purchaser”
and collectively, the “Purchasers”).

 

WHEREAS, subject to the terms and conditions
set forth in this Agreement and pursuant to Section 4(2) of the Securities
Act of 1933, as amended (the “Securities Act”),
the Company desires to issue and sell to the Purchasers, and the Purchasers,
severally and not jointly, desire to purchase from the Company, securities of
the Company as more fully described in this Agreement.

 

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

 

ARTICLE I

DEFINITIONS

 

1.1                 Definitions.  In addition to the terms defined elsewhere
in this Agreement, the following terms have the meanings indicated:

 

“Additional
Investment Rights” means, collectively, the Additional
Investment Rights issued and sold under this Agreement, in the form of Exhibit
A.

 

“Affiliate”
means any Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with a
Person, as such terms are used in and construed under Rule 144 under the
Securities Act.

 

“Business
Day” means any day other than Saturday, Sunday or other day on which
commercial banks in The City of New York are authorized or required by law to
remain closed.

 

“Closing”
means the closing of the purchase and sale of the Shares, the Additional
Investment Rights and the Warrants pursuant to Section 2.1.

 

“Closing Date”
means the date of the Closing.

 

“Closing Price”
means, for any date, the price determined by the first of the following clauses
that applies: (a) if the Ordinary Shares are then listed or quoted on an
Eligible Market or any other national securities exchange, the closing price
per share of the Ordinary Shares for such date (or the nearest preceding date)
on the primary Eligible Market or exchange on which the Ordinary Shares are
then listed or quoted; (b) if prices for the Ordinary Shares are then
quoted on the OTC Bulletin Board, the closing bid price per share of the
Ordinary Shares for such date (or the nearest preceding date) so quoted;
(c) if prices for the Ordinary Shares are then reported in the “Pink
Sheets” published by the National Quotation Bureau Incorporated (or a similar
organization or agency succeeding to its functions of reporting prices), the
most recent closing bid price per share of the Ordinary Shares so reported; or
(d) in all other cases, the fair market value of a share of Ordinary
Shares as determined by an independent appraiser selected in good faith by the
Company’s Board of Directors.

 

 

“Commission”
means the Securities and Exchange Commission.

 

“Company Counsel”
means Sharir, Shiv, Friedman & Co. and Fulbright & Jaworski L.L.P.,
counsel to the Company.

 

“Convertible Securities” means any stock or
securities (other than Options) convertible into or exercisable or exchangeable
for Ordinary Shares.

 

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

 

“Eligible Market”
means any of the New York Stock Exchange, the American Stock Exchange, the
NASDAQ National Market or the NASDAQ SmallCap Market.

 

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

 

“Excluded Stock” means the issuance of Ordinary Shares
(A) upon exercise or conversion of any options or other securities described in
Schedule 3.1(f) (provided that such exercise or conversion occurs
in accordance with the terms thereof, without amendment or modification, and
that the applicable exercise or conversion price or ratio is described in such
schedule) or otherwise pursuant to any employee benefit plan described in Schedule 3.1(f)
or hereafter adopted by the Company and approved by its shareholders,  (B) in connection with any issuance of
shares or grant of options to employees, officers, directors or consultants of
the Company pursuant to a stock option plan or other incentive stock plan duly
adopted by the Company’s board of directors or in respect of the issuance of
Ordinary Shares upon exercise of any such options, (C) pursuant to a bona fide
firm commitment underwritten public offering through a nationally recognized
investment banker in an aggregate offering amount greater than $20,000,000, or
(D) in connection with a bona fide joint venture or development agreement or
strategic partnership or to an independent Person, the primary purpose of which
is not to raise cash.

 

“Filing Date”
means April 9, 2004, with respect to the initial Registration Statement
required to be filed hereunder, and, with respect to any additional
Registration Statements that may be required pursuant to Section 6.1(g),
the 15th day if the Company is eligible to use Form S-3, and 30th
day if the Company is not eligible to use Form S-3, in each case, following the
event that causes such additional Registration Statement to be required under
such Section.

 

“Lien”
means any lien, charge, claim, security interest, encumbrance, right of first
refusal or other restriction.

 

“Losses”
means any and all losses, claims, damages, liabilities, settlement costs and
expenses, including, without limitation, costs of preparation and reasonable
attorneys’ fees.

 

“Material
Adverse Effect” shall mean an event that (i) adversely affects the
legality, validity or enforceability of any Transaction Document, (ii) has or
results in a material 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) adversely impair the Company’s
ability to perform fully on a timely basis its obligations under any of the
Transaction Document; provided, that none of the following alone shall be
deemed, in and of itself, to constitute a Material Adverse Effect: (i) a change
in the market price or trading volume of the Ordinary Shares or (ii) changes in
general economic conditions or changes affecting the industry in which

 

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the Company
operates generally (as opposed to Company-specific changes) so long as such
changes do not have a disproportionate effect on the Company and its
Subsidiaries taken as a whole.

 

“Options”
means any rights, warrants or options to subscribe for or purchase Ordinary
Shares or Convertible Securities.

 

“Ordinary Shares”
means the Ordinary Shares of the Company, par value NIS 0.01 per share.

 

“Ordinary Shares Equivalents” means,
collectively, Options and Convertible Securities.

 

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

 

“Per Unit Purchase
Price” means $0.60.

 

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

 

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

 

“Purchaser Counsel”
has the meaning set forth in Section 6.2(a).

 

“Registrable
Securities” means any Ordinary Shares (including the
Shares and Underlying Shares) issued or issuable pursuant to the Transaction
Documents, together with any securities issued or issuable upon any stock
split, dividend or other distribution, recapitalization or similar event with
respect to the foregoing; provided, however, that the treatment of these
securities as Registrable Securities shall terminate if and when such
securities can be resold under Rule 144(k) under the Securities Act and
provided further however, that any shares of capital stock issued or issuable,
from time to time (with any adjustments), in exchange for or otherwise with
respect to any Shares or Underlying Shares shall not be considered Registrable
Securities to the extent such shares of capital stock are covered by another,
current and effective registration statement permitting the resale without
restriction of such shares.

 

“Registration
Statement” means the initial registration statement
required to be filed under Article VI and any additional registration
statements contemplated by Section 6.1(g), including (in each case)
the Prospectus, amendments and supplements to such registration statement or
Prospectus, including pre- and post-effective amendments, all exhibits thereto,
and

 

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all material
incorporated by reference or deemed to be incorporated by reference in such
registration statement.

 

“Required
Effectiveness Date” means June 8, 2004, with
respect to the initial Registration Statement required to be filed
hereunder,  and, with respect to any
additional Registration Statements that may be required pursuant to Section 6.1(g),
the 60th day if the Company is eligible to use Form S-3, and 90th
day if the Company is not eligible to use Form S-3, in each case, following the
event that causes such additional Registration Statement to be required under
such Section.

 

“Rule 144,”
“Rule 415,” and “Rule 424” means Rule 144, Rule 415 and
Rule 424, respectively, promulgated by the Commission pursuant to the
Securities Act, as such Rules may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

 

“Securities”
means the Shares, the Additional Investment Rights, the Warrants and the
Underlying Shares.

 

“Shares”
means the Ordinary Shares which are being issued and sold to the Purchasers at
the Closing.

 

“Subsidiary”
means any Person in which the Company, directly or indirectly, owns at least a
majority of the outstanding voting capital stock or holds an equivalent equity
or similar interest.

 

 “Trading Day” means
(a) any day on which the Ordinary Shares are listed or quoted and traded on
their primary Trading Market, (b) if the Ordinary Shares are not then listed or
quoted and traded on any Eligible Market, then a day on which trading occurs on
the NASDAQ National Market (or any successor thereto), or (c) if trading ceases
to occur on the NASDAQ National Market (or any successor thereto), any Business
Day.

 

“Trading Market”
means the NASDAQ SmallCap Market or any other Eligible Market, or any national
securities exchange, market or trading or quotation facility on which the
Ordinary Shares are then listed or quoted.

 

“Transaction Documents”
means this Agreement, the Additional Investment Rights, the Warrants, the
Transfer Agent Instructions and any other documents or agreements executed in
connection with the transactions contemplated hereunder.

 

“Transfer
Agent Instructions” means the Transfer Agent Instructions, in the
form of Exhibit E, executed by the Company and delivered to and
acknowledged in writing by the Company’s transfer agent.

 

“Underlying Shares”
means the Ordinary Shares issuable upon exercise of the Additional Investment
Rights and the Warrants.

 

“Unit”
means one Ordinary Share and an Additional Investment Right to acquire one
Ordinary Share.

 

“Warrants”
means, collectively, the Ordinary Shares purchase warrants A issued and sold
under this Agreement, in the form of Exhibit B-1, the Ordinary Shares
purchase warrants B

 

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issued and
sold under this Agreement, in the form of Exhibit B-2, the Ordinary
Shares purchase warrants C issued and sold under this Agreement, in the form of
Exhibit B-3 and the Ordinary Shares purchase warrants D issued and sold
under this Agreement, in the form of Exhibit B-4, and any warrants or
replacement warrants issued upon exercise transfer, exchange or partial
exercise of such warrants.

 

ARTICLE II

PURCHASE AND SALE

 

2.1                 Closing.  Subject to the terms and conditions set
forth in this Agreement, at the Closing the Company shall issue and sell to
each Purchaser, and each Purchaser shall, severally and not jointly, purchase
from the Company, such number of Units indicated below such Purchaser’s name on
the signature page of this Agreement at the Per Unit Purchase Price. The
Company’s agreement with each of the Purchasers is a separate agreement, and
the sale of the Securities to each of the Purchasers is a separate sale.  The Closing shall take place at the offices
of Purchaser Counsel immediately following the execution hereof, or at such
other location or time as the parties may agree.

 

2.2                 Closing
Deliveries.

 

(a)                                At the
Closing, the Company shall deliver or cause to be delivered to each Purchaser
the following:

 

(i)                                     one or more stock certificates, free and
clear of all restrictive and other legends (except as expressly provided in
Section 4.1(b) hereof), evidencing such number of Shares equal to the
number of Units indicated below such Purchaser’s name on the signature page of
this Agreement, registered in the name of such Purchaser;

 

(ii)                                  an Additional Investment Right, registered in
the name of such Purchaser, pursuant to which such Purchaser shall have the
right to acquire such number of Underlying Shares indicated below such
Purchaser’s name on the signature page of this Agreement, on the terms set
forth therein;

 

(iii)                               a Warrant, registered in the name of such Purchaser, pursuant to which
such Purchaser shall have the right to acquire such number of Underlying Shares
indicated below such Purchaser’s name on the signature page of this Agreement
under the heading “Underlying Shares subject to Warrant A”, on the terms set
forth therein;

 

(iv)                              a Warrant, registered in the name of such Purchaser, pursuant to which
such Purchaser shall have the right to acquire such number of Underlying Shares
indicated below such Purchaser’s name on the signature page of this Agreement
under the heading “Underlying Shares subject to Warrant B”, on the terms set
forth therein;

 

(v)                                 a Warrant, registered in the name of such
Purchaser, pursuant to which such Purchaser shall have the right to acquire
such number of Underlying Shares indicated below such Purchaser’s name on the
signature page

 

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of this Agreement under the heading “Underlying Shares subject to
Warrant C”, on the terms set forth therein;

 

(vi)                              a
Warrant, registered in the name of such Purchaser, pursuant to which such
Purchaser shall have the right to acquire such number of Underlying Shares
indicated below such Purchaser’s name on the signature page of this Agreement
under the heading “Underlying Shares subject to Warrant D”, on the terms set
forth therein;

 

(vii)                           a legal opinion of Company Counsel, in the form of Exhibit C,
executed by such counsel and delivered to the Purchasers; and

 

(viii)                        duly executed Transfer Agent Instructions acknowledged by the Company’s
transfer agent.

 

(b)                 At the
Closing, each Purchaser shall deliver or cause to be delivered to the Company
an amount equal to the Per Unit Purchase Price multiplied by the number of
Units indicated below such Purchaser’s name on the signature page of this
Agreement, in United States dollars and in immediately available funds, by wire
transfer to an account designated in writing to such Purchaser by the Company
for such purpose.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

3.1                 Representations
and Warranties of the Company. 
The Company hereby represents and warrants to each of the Purchasers as
follows:

 

(a)                  Subsidiaries.  The Company has no direct or indirect
Subsidiaries other than those listed in Schedule 3.1(a).  Except as disclosed in Schedule 3.1(a),
the Company owns, directly or indirectly, all of the capital stock or
comparable equity interests of each Subsidiary free and clear of any Lien and
all the issued and outstanding shares of capital stock or comparable equity
interest of each Subsidiary are validly issued and are fully paid,
non-assessable and free of preemptive and similar rights.

 

(b)                 Organization
and Qualification.  Each of the
Company and the Subsidiaries is an entity duly organized, validly existing and
in good standing under the laws of the jurisdiction of its incorporation or
organization (as applicable), with the requisite power and authority to own and
use its properties and assets and to carry on its business as currently
conducted.  Neither the Company nor any
Subsidiary is in violation of any of the provisions of its respective articles
of association, certificate or articles of incorporation, bylaws or other
organizational or charter documents. 
Each of the Company and the Subsidiaries is duly qualified to do
business and is in good standing as a foreign corporation or other entity in
each jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, except where the failure to be
so qualified or in good standing, as the case may be, could not, individually
or in the aggregate, have a Material Adverse Effect.

 

(c)                  Authorization;
Enforcement.  The Company has
the requisite corporate power and authority to enter into and to consummate the
transactions contemplated by each of the Transaction Documents and otherwise to
carry out its obligations hereunder and thereunder.  The execution and delivery of each of the Transaction Documents
by the Company and the consummation by it of the transactions contemplated
hereby and thereby have been duly authorized by all necessary action on the 

 

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part of the Company and no
further consent or action is required by the Company, its Board of Directors or
its shareholders.  Each of the
Transaction Documents has been (or upon delivery will be) duly executed by the
Company and is, or when delivered in accordance with the terms hereof, will
constitute, the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer and other laws
affecting creditors’ rights and remedies generally and to general principles of
equity (regardless of whether enforcement is sought in a proceeding at law or
in equity).

 

(d)                 No
Conflicts.  The execution,
delivery and performance of the Transaction Documents by the Company and the
consummation by the Company of the transactions contemplated hereby and thereby
do not and will not (i) conflict with or violate any provision of the Company’s
or any Subsidiary’s certificate or articles of incorporation, bylaws, articles
of association or other organizational or charter documents, (ii) conflict
with, or constitute a default (or an event that with notice or lapse of time or
both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice,
lapse of time or both) of, any agreement, credit facility, debt or other
instrument (evidencing a Company or Subsidiary debt or otherwise) or other
understanding to which the Company or any Subsidiary is a party or by which any
property or asset of the Company or any Subsidiary is bound or affected, or
(iii) result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority
to which the Company or a Subsidiary is subject (including federal and state
securities laws and regulations and the rules and regulations of any
self-regulatory organization to which the Company or its securities are
subject), or by which any property or asset of the Company or a Subsidiary is
bound or affected (except, with respect to clause (ii), for such conflicts,
defaults, terminations, amendments, accelerations, cancellations and violations
as would not, individually or in the aggregate, have a Material Adverse
Effect).

 

(e)                  Issuance
of the Securities.  The Securities
(including the Underlying Shares) are duly authorized and, when issued and paid
for in accordance with the Transaction Documents, will be duly and validly
issued, fully paid and nonassessable, free and clear of all Liens and shall not
be subject to preemptive rights or similar rights of shareholders.  The Company has reserved from its duly
authorized capital stock the maximum number of Ordinary Shares issuable upon
exercise of the Additional Investment Rights and the Warrants.

 

(f)                    Capitalization.  The number of shares and type of all
authorized, issued and outstanding capital stock, options and other securities
of the Company (whether or not presently convertible into or exercisable or
exchangeable for shares of capital stock of the Company) is set forth in
Schedule 3.1(f).  All outstanding
shares of capital stock are duly authorized, validly issued, fully paid and
nonassessable and have been issued in compliance with all applicable securities
laws.  Except as disclosed in
Schedule 3.1(f), there are no outstanding options, warrants, script rights
to subscribe to, calls or commitments of any character whatsoever relating to,
or securities, rights or obligations convertible into or exercisable or
exchangeable for, or giving any Person any right to subscribe for or acquire,
any Ordinary Shares, or contracts, commitments, understandings or arrangements
by which the Company or any Subsidiary is or may become bound to issue
additional Ordinary Shares, or securities or rights convertible or exchangeable
into Ordinary Shares. There are no anti-dilution or price adjustment provisions
contained in any security issued by the Company (or in any agreement providing
rights to security holders) and the issue and sale of the Securities (including
the Underlying Shares) will not obligate the Company to issue Ordinary Shares
or other securities to any Person  and
will not result in a right of any holder of Company securities to adjust the
exercise, conversion, exchange or reset price under such securities.  To the knowledge of the Company, except as
specifically disclosed in Schedule 3.1(f), no Person or group of related
Persons beneficially owns (as determined pursuant to Rule 13d-3 under the
Exchange Act), or has the right to acquire, by agreement

 

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with or by obligation binding
upon the Company, beneficial ownership of in excess of 5% of the outstanding
Ordinary Shares, ignoring for such purposes any limitation on the number of
Ordinary Shares that may be owned at any single time.

 

(g)                 SEC
Reports; Financial Statements. 
The Company has filed all reports required to be filed by it under the
Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for
the two years preceding the date hereof (or such shorter period as the Company
was required by law to file such material) (the foregoing materials (together
with any materials filed by the Company under the Exchange Act, whether or not
required) being collectively referred to herein as the “SEC Reports” and, together with this Agreement and
the Schedules to this Agreement, the “Disclosure Materials”) on a
timely basis or has received a valid extension of such time of filing and has
filed any such SEC Reports prior to the expiration of any such extension.  The Company has delivered to each Purchaser
true, correct and complete copies of all SEC Reports filed within the 10 days
preceding the date hereof.  As of their
respective dates, the SEC Reports complied in all material respects with the
requirements of the Securities Act and the Exchange Act and the rules and
regulations of the Commission promulgated thereunder, and none of the SEC
Reports, when filed, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. 
As of their respective dates, the financial statements of the Company
included in the SEC Reports complied in all material respects with applicable
accounting requirements and the rules and regulations of the Commission with
respect thereto as in effect at the time of filing.  Such financial statements have been prepared in accordance with
United States generally accepted accounting principles applied on a consistent
basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes
thereto, and fairly present in all material respects the financial position of
the Company and its consolidated subsidiaries as of and for the dates thereof
and the results of operations and cash flows for the periods then ended,
subject, in the case of unaudited statements, to normal, immaterial, year-end
audit adjustments.  All material
agreements to which the Company or any Subsidiary is a party or to which the
property or assets of the Company or any Subsidiary are subject are included as
part of or specifically identified in the SEC Reports.

 

(h)                 Material
Changes.  Since the date of
the latest audited financial statements included within the SEC Reports, except
as specifically disclosed in the SEC Reports or in Schedule 3.1(h), (i)
there has been no event, occurrence or development that, individually or in the
aggregate, has had or that could result in a Material Adverse Effect, (ii) the
Company has not incurred any liabilities (contingent or otherwise) other than
(A) trade payables and accrued expenses incurred in the ordinary course of
business consistent with past practice and (B) liabilities not required to be
reflected in the Company’s financial statements pursuant to GAAP or required to
be disclosed in filings made with the Commission, (iii) the Company has not
altered its method of accounting or the identity of its auditors, except as
disclosed in its SEC Reports, (iv) the Company has not declared or made any
dividend or distribution of cash or other property to its shareholders or
purchased, redeemed or made any agreements to purchase or redeem any shares of
its capital stock, and (v) the Company has not issued any equity securities to
any officer, director or Affiliate, except pursuant to existing Company stock-based
plans.

 

(i)                     Absence
of Litigation.  Except for the
NASDAQ review described in Section 3.1(o), there is no action, suit,
claim, proceeding, inquiry or investigation before or by any court, public
board, government agency, self-regulatory organization or body pending or, to
the knowledge of the Company, threatened against or affecting the Company or
any of its Subsidiaries that could, individually or in the aggregate, have a
Material Adverse Effect.

 

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(j)                     Compliance.  Neither the Company nor any Subsidiary (i)
is in default under or in violation of (and no event has occurred that has not
been waived that, with notice or lapse of time or both, would result in a
default by the Company or any Subsidiary under), nor has the Company or any
Subsidiary received notice of a claim that it is in default under or that it is
in violation of, any indenture, loan or credit agreement or any other agreement
or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in
violation of any order of any court, arbitrator or governmental body, or (iii)
is or has been in violation of any statute, rule or regulation of any
governmental authority, including without limitation all foreign, federal,
state and local laws relating to taxes, environmental protection, occupational
health and safety, product quality and safety and employment and labor matters,
except in each case as could not, individually or in the aggregate, have or
result in a Material Adverse Effect.

 

(k)                  Title
to Assets. The Company and the Subsidiaries have good  title in fee simple to all real property
owned by them that is material to the business of the Company and the Subsidiaries
and good title to all personal property owned by them that is material to the
business of the Company and the Subsidiaries, in each case free and clear of
all Liens, except for Liens as do not materially affect the 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 the Subsidiaries, or would not have a
Material Adverse Effect. Any real property and facilities held under lease by
the Company and the Subsidiaries are held by them under valid, subsisting and
enforceable leases, with such exceptions that could not have a Material Adverse
Effect.

 

(l)                     Certain
Fees.  Except for the
fees described in Schedule 3.1(l), no brokerage or finder’s fees or
commissions are or will be payable by the Company to any broker, financial
advisor or consultant, finder, placement agent, investment banker, bank or
other Person with respect to the transactions contemplated by this Agreement,
and the Company has not taken any action that would cause any Purchaser to be
liable for any such fees or commissions.

 

(m)               Private
Placement.  Neither the
Company nor any Person acting on the Company’s behalf has sold or offered to
sell or solicited any offer to buy the Securities by means of any form of general
solicitation or advertising.  Neither
the Company nor any of its Affiliates nor any person acting on the Company’s
behalf has, directly or indirectly, at any time within the past six months,
made any offer or sale of any security or solicitation of any offer to buy any
security under circumstances that would (i) eliminate the availability of the
exemption from registration under Regulation D under the Securities Act in
connection with the offer and sale of the Securities as contemplated hereby or (ii)
cause the offering of the Securities pursuant to the Transaction Documents to
be integrated with prior offerings by the Company for purposes of any
applicable law, regulation or stockholder approval provisions, including,
without limitation, under the rules and regulations of any Trading Market;
provided, however, that the Company makes no representation or warranty with
respect to the activities of any of the placement agents or any Affiliate of
any of them engaged by the Company in connection with the transactions
contemplated by this Agreement. The Company is not, and is not an Affiliate of,
an “investment company” within the meaning of the Investment Company Act of
1940, as amended.  The Company is not a
United States real property holding corporation within the meaning of the
Foreign Investment in Real Property Tax Act of 1980.

 

(n)                 Form
S-3 Eligibility. The Company is eligible to register its Ordinary Shares
for resale by the Purchasers using Form S-3 promulgated under the Securities
Act.

 

(o)                 Listing
and Maintenance Requirements. On February 11, 2004, the
Company received a letter (the “Letter”) from NASDAQ indicating that NASDAQ was
reviewing the Company’s compliance with NASDAQ listing requirements.  Except for the Letter and as disclosed in

 

9

 

the SEC Documents, the Company
has not, in the two years preceding the date hereof, received notice (written
or oral) from any Trading Market on which the Ordinary Shares are or have been
listed or quoted to the effect that the Company is not in compliance with the
listing or maintenance requirements of such Trading Market.

 

(p)                 Registration
Rights.  Except as
described in Schedule 3.1(p), the Company has not granted or agreed to
grant to any Person any rights (including “piggy-back” registration rights) to
have any securities of the Company registered with the Commission or any other
governmental authority that are in effect.

 

(q)                 Application
of Takeover Protections. 
There is no control share acquisition, business combination, poison pill
(including any distribution under a rights agreement) or other similar
anti-takeover provision under the Company’s charter documents or the laws of
its state of incorporation that is or could become applicable to any of the Purchasers
as a result of the Purchasers and the Company fulfilling their obligations or
exercising their rights under the Transaction Documents, including, without
limitation, as a result of the Company’s issuance of the Securities and the
Purchasers’ ownership of the Securities.

 

(r)                    Disclosure.  The Company confirms that neither it nor any
other duly authorized Person acting on its behalf has provided any of the
Purchasers or their agents or counsel with any information that constitutes or might constitute material,
nonpublic information.  The Company
understands and confirms that each of the Purchasers will rely on the foregoing
representations in effecting transactions in securities of the Company.  All Disclosure Materials provided to the
Purchasers regarding the Company, its business and the transactions
contemplated hereby, including the Schedules to this Agreement, furnished by or
on behalf of the Company are true and correct in all material respects 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 the
light of the circumstances under which they were made, not misleading.  No event or circumstance has occurred or
information exists with respect to the Company or any of its Subsidiaries or
its or their business, properties, prospects, operations or financial
conditions, which, under applicable law, rule or regulation, requires public
disclosure or announcement by the Company but which has not been so publicly
announced or disclosed, except, until such time as a press release is issued
pursuant to Section 4.6, the execution of this Agreement.  The Company acknowledges and agrees that (i)
no Purchaser makes or has made any representations or warranties with respect
to the transactions contemplated hereby other than those specifically set forth
in Section 3.2 or
(ii) any oral statement, commitment or promise to the Company or, to its
knowledge, any of its representatives which is or was an inducement to the Company
to enter into this Agreement or otherwise.

 

(s)                  Acknowledgment
Regarding Purchasers’ Purchase of Securities.  The Company acknowledges and agrees that each of the Purchasers
is acting solely in the capacity of an arm’s length purchaser with respect to
the Company and to this Agreement and the transactions contemplated
hereby.  The Company further
acknowledges that no Purchaser is 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 any Purchaser or any
of their respective representatives or agents in connection with this Agreement
and the transactions contemplated hereby is merely incidental to the
Purchasers’ purchase of the Securities. 
The Company further represents to each Purchaser that the Company’s
decision to enter into this Agreement has been based solely on the independent
evaluation of the transactions contemplated hereby by the Company and its
representatives.

 

10

 

(t)                    Patents
and Trademarks.  The Company and
the Subsidiaries have, or have rights to use, 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 SEC Reports and which the
failure to so have could 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, all such Intellectual Property
Rights are enforceable and there is no existing infringement by another Person
of any of the Intellectual Property Rights.

 

(u)                 Insurance.  The Company and the Subsidiaries are insured
by insurers of recognized financial responsibility against such losses and
risks and in such amounts as are prudent and customary in reasonably comparable
businesses.  Neither the Company nor any
Subsidiary has any reason to believe that it will not be able to renew its
existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its
business, other than such coverages in respect of which the failure to continue
such coverage would not have a Material Adverse Effect.

 

(v)                 Regulatory
Permits.  The Company and
the Subsidiaries possess all certificates, authorizations and permits issued by
the appropriate federal, state, local or foreign regulatory authorities
necessary to conduct their respective businesses as described in the SEC
Reports, except where the failure to possess such permits could not,
individually or in the aggregate, have or result in a Material Adverse Effect (“Material Permits”), and neither the Company nor any
Subsidiary has received any notice of proceedings relating to the revocation or
modification of any Material Permit.

 

(w)               Transactions
With Affiliates and Employees. 
Except as set forth in SEC Reports filed at least ten days prior to the
date hereof, none of the officers or directors of the Company and, to the
knowledge of the Company, none of the employees of the Company 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 entity in which any officer, director, or any
such employee has a substantial interest or is an officer, director, trustee or
partner.

 

(x)                   Solvency.
Based on the financial condition of the Company as of the Closing Date, (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 (upon receipt of the proceeds of this transaction) 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 does not intend to 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).

 

11

 

(y)                 Going
Concern.  The Company and
the Subsidiaries have no knowledge (upon receipt of the proceeds of this transaction)
that Ernst & Young, the Company’s independent public accountants, will
issue an audit letter containing a “going concern” opinion in connection with
the Company’s annual report on Form 10-K pursuant to Section 13 or 15(d)
under the Exchange Act for the fiscal year ended December 31, 2003 or
otherwise.

 

(z)                   Internal
Accounting Controls. 
The Company and the Subsidiaries maintain a system of internal
accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management’s general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, (iii) access to
assets is permitted only in accordance with management’s general or specific
authorization, and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences.

 

(aa)                            Sarbanes-Oxley
Act. The Company is in compliance with applicable  requirements of the Sarbanes-Oxley Act of 2002 and applicable
rules and regulations promulgated by the Commission thereunder in effect
as of the date of this Agreement, except where such noncompliance could
not be reasonably expected to have, individually or in the aggregate, a
Material Adverse Effect.

 

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

 

(a)                  Organization;
Authority.  Such Purchaser is
an entity duly organized, validly existing and in good standing under the laws
of the jurisdiction of its organization with the requisite corporate or
partnership power and authority to enter into and to consummate the
transactions contemplated by the Transaction Documents and otherwise to carry
out its obligations hereunder and thereunder. 
The purchase by such Purchaser of the Shares, the Additional Investment
Rights and the Warrants hereunder has been duly authorized by all necessary
action on the part of such Purchaser. 
This Agreement has been duly executed and delivered by such Purchaser
and constitutes the valid and binding obligation of such Purchaser, enforceable
against it in accordance with its terms.

 

(b)                 Investment
Intent.  Such Purchaser is
acquiring the Securities for investment purposes only and not with a view to or
for distributing or reselling such Securities or any part thereof.
Notwithstanding anything in this Section 3.2(b) to the contrary, the
foregoing representation, is without prejudice, however, to such Purchaser’s
right, subject to the provisions of this Agreement, at all times to sell or
otherwise dispose of all or any part of such Securities pursuant to an
effective registration statement under the Securities Act or under an exemption
from such registration and in compliance with applicable federal and state
securities laws.  Nothing contained
herein shall be deemed a representation or warranty by such Purchaser to hold
Securities for any period of time.

 

(c)                  Purchaser
Status.  At the time such
Purchaser was offered the Shares, the Additional Investment Rights and the
Warrants, it was, and at the date hereof it is, an “accredited investor” as
defined in Rule 501(a) under the Securities Act. In the normal course of its
business, it invests in or purchases securities similar to the Securities and
it has such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of purchasing the Securities.

 

(d)                 Experience
of such Purchaser.  Such Purchaser,
either alone or together with its representatives has such knowledge,
sophistication and experience in business and financial matters

 

12

 

so as to be capable of
evaluating the merits and risks of the prospective investment in the
Securities, and has so evaluated the merits and risks of such investment.  Such Purchaser is able to bear the economic
risk of an investment in the Securities and, at the present time, is able to
afford a complete loss of such investment.

 

(e)                  Information.
Such Purchaser has been furnished all materials relating to the business,
finances and operations of the Company and its Subsidiaries and materials
relating to the offer and sale of the Securities that have been requested by
the Purchaser. Such Purchaser has been afforded the opportunity to ask
questions of the Company and has received what the Purchaser believes to be
satisfactory answers to any such inquiries. Such Purchaser understands that its
investment in the Securities involves a high degree of risk.

 

(f)                    Restricted
Securities. Such Purchaser understands that the Securities are characterized as
“restricted securities” under the U.S. federal securities laws inasmuch as they
are being acquired from the Company in a transaction not involving a public
offering and that under such laws and applicable regulations such securities
may be resold without registration under the Securities Act only in certain
limited circumstances, and are subject to the transfer restrictions and legend
requirements set forth in Section 4.1.

 

ARTICLE IV

OTHER AGREEMENTS OF THE PARTIES

 

4.1               Transfer
Restrictions.

 

(a)                                  Securities
may only be disposed of pursuant to an effective registration statement under
the Securities Act or pursuant to an available exemption from the registration
requirements of the Securities Act, and in compliance with any applicable state
securities laws.  In connection with any
transfer of Securities other than pursuant to an effective registration
statement or to the Company or pursuant to Rule 144(k), except as otherwise set
forth herein, the Company may require the transferor to provide to the Company
an opinion of counsel selected by the transferor, the form and substance of
which opinion shall be reasonably satisfactory to the Company, to the effect
that such transfer does not require registration under the Securities Act.  Notwithstanding the foregoing, the Company
hereby consents to and agrees to register on the books of the Company and with
its transfer agent, without any such legal opinion, any transfer of Securities
by a Purchaser to an Affiliate of such Purchaser, provided that the transferee
certifies to the Company that it is an “accredited investor” as defined in Rule
501(a) under the Securities Act.

 

(b)                                 The
Purchasers agree to the imprinting, so long as is required by this Section 4.1(b),
of the following legend on any certificate evidencing Securities:

 

[NEITHER] THESE SECURITIES [NOR
THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES] HAVE [NOT] BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE
SECURITIES LAWS OR BLUE SKY LAWS.

 

13

 

NOTWITHSTANDING THE FOREGOING,
THESE SECURITIES [AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
SECURITIES] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY SUCH SECURITIES.

 

Certificates evidencing Securities shall not
be required to contain such legend or any other legend (i) while a Registration
Statement covering the resale of such Securities is effective under the
Securities Act, or (ii) following any sale of such Securities pursuant to Rule
144, or (iii) if such Securities are eligible for sale under Rule 144(k), or
(iv) if such legend is not required under applicable requirements of the
Securities Act (including judicial interpretations and pronouncements issued by
the Staff of the Commission).  Following
the Effective Date or at such earlier time as a legend is no longer required
for certain Securities, the Company will no later than three Trading Days
following the delivery by a Purchaser to the Company or the Company’s transfer
agent of a legended certificate representing such Securities, deliver or cause
to be delivered to such Purchaser a certificate representing such Securities
that is free from all restrictive and other legends.  The Company may not make any notation on its records or give
instructions to any transfer agent of the Company that enlarge the restrictions
on transfer set forth in this Section. 
For so long as any Purchaser owns Securities, the Company will not
effect or publicly announce its intention to effect any exchange, recapitalization
or other transaction that effectively requires or rewards physical delivery of
certificates evidencing the Ordinary Shares.

 

(c)                                  The
Company acknowledges and agrees that a Purchaser may from time to time pledge
or grant a security interest in some or all of the Securities in connection with
a bona fide margin agreement or other loan or financing arrangement secured by
the Securities and, if required under the terms of such agreement, loan or
arrangement, such Purchaser may transfer pledged or secured Securities to the
pledgees or secured parties.  Such a
pledge or transfer would not be subject to approval of the Company and no legal
opinion of the pledgee, secured party or pledgor shall be required in
connection therewith.  Further, no
notice shall be required of such pledge. 
At the appropriate Purchaser’s expense, the Company will execute and
deliver such reasonable documentation as a pledgee or secured party of
Securities may reasonably request in connection with a pledge or transfer of
the Securities, including the preparation and filing of any required prospectus
supplement under Rule 424(b) of the Securities Act or other applicable
provision of the Securities Act to appropriately amend the list of selling
shareholders thereunder.

 

4.2                               Furnishing of Information.  As long as any Purchaser owns Securities, the Company covenants
to timely file (or obtain extensions in respect thereof and file within the
applicable grace period) all reports required to be filed by the Company after
the date hereof pursuant to the Exchange Act. 
Upon the request of any Purchaser, the Company shall deliver to such
Purchaser a written certification of a duly authorized officer as to whether it
has complied with the preceding sentence. As long as any Purchaser owns
Securities, if the Company is not required to file reports pursuant to such
laws, it will prepare and furnish to the Purchasers and make publicly available
in accordance with paragraph (c) of Rule 144 such information as is required
for the Purchasers to sell the Securities under Rule 144.  The Company further covenants that it will
take such further action as any holder of Securities may reasonably request to
satisfy the provisions of Rule 144 applicable to the issuer of securities
relating to transactions for the sale of securities pursuant to Rule 144.

 

4.3               Integration.  The Company shall not, and shall use its
best efforts to ensure that no Affiliate of the Company shall, sell, offer for
sale or solicit offers to buy or otherwise negotiate in respect of any security
(as defined in Section 2 of the Securities Act) that would be integrated
with the offer or sale of the Securities in a manner that would require the
registration under the Securities Act of

 

14

 

the sale of the Securities to
the Purchasers or that would be integrated with the offer or sale of the
Securities for purposes of the rules and regulations of any Trading Market.

 

4.4               Reservation
of Securities.  The Company shall
maintain a reserve from its duly authorized Ordinary Shares for issuance
pursuant to the Transaction Documents in such amount as may be required to
fulfill its obligations in full under the Transaction Documents.  In the event that at any time the then
authorized Ordinary Shares are insufficient for the Company to satisfy its
obligations in full under the Transaction Documents, the Company shall promptly
take such actions as may be required to increase the number of authorized
Ordinary Shares.

 

4.5               Subsequent
Placements.

 

(a)                                  From
the date hereof until the Effective Date, the Company will not, directly or
indirectly, offer, sell, grant any option to purchase, or otherwise dispose of
(or announce any offer, sale, grant or any option to purchase or other
disposition of) any of its or the Subsidiaries’ equity or equity equivalent
securities, including without limitation any debt, preferred stock or other
instrument or security that is, at any time during its life and under any
circumstances, convertible into or exchangeable or exercisable for Ordinary
Shares or Ordinary Shares Equivalents (any such offer, sale, grant, disposition
or announcement being referred to as a “Subsequent Placement”).

 

(b)                                 From
the Effective Date until 30 Trading Days after the Effective Date (the “Blockout Period”), the Company will not, directly or
indirectly, effect any Subsequent Placement except as set forth in
Section 4.5(e).

 

(c)                                  The
Blockout Period set forth in Section 4.5(b) above shall be extended for
the number of Trading Days during such period in which (i) trading in the
Ordinary Shares is suspended by any Trading Market, (ii) the Registration
Statement is not effective, or (iii) the prospectus included in the
Registration Statement may not be used by the Purchasers for the resale of
Registrable Securities thereunder.

 

(d)                                 From the end of the Blockout
Period until the one year anniversary thereof, the Company’s Board of Directors
will view favorably participation of the Purchasers in Subsequent Placements on
a pro rata basis of 75% of the securities being offered in a Subsequent
Placement (the “Offered Securities”)
based on such Purchaser’s pro rata portion of the aggregate purchase price paid
by the Purchasers for all of the Shares purchased hereunder.

 

(e)                                  The restrictions contained in
paragraphs (a), (b) and (d) of this Section 4.5 shall not apply to
Excluded Stock,

 

4.6                 Securities Laws Disclosure; Publicity.  The
Company shall, on or before 8:30 a.m.,
New York City time, on March 11, 2004, issue a press release reasonably acceptable to the Purchasers
disclosing all material terms of the transactions contemplated hereby.  On the first Trading Day following the
Closing Date, the Company shall file a Current Report on Form 8-K with the
Commission (the “8-K
Filing”)  describing the terms of the transactions
contemplated by the Transaction Documents and including as exhibits to such
Current Report on Form 8-K this Agreement and the form of both the Additional
Investment Rights and the Warrants, in the form required by the Exchange
Act.  Thereafter, the Company shall
timely file any filings and notices required by the Commission or applicable
law with respect to the transactions contemplated hereby and provide copies
thereof to the Purchasers promptly after filing.  Except with respect to the 8-K Filing and the press release
referenced above (a copy of which will be provided to the Purchasers for their
review as early

 

15

 

as practicable prior to its filing), the Company shall,
at least two Trading Days prior to the filing or dissemination of any
disclosure required by this paragraph, provide a copy thereof to the Purchasers
for their review.  The Company and the
Purchasers shall consult with each other in issuing any press releases or
otherwise making public statements or filings and other communications with the
Commission or any regulatory agency or Trading Market with respect to the
transactions contemplated hereby, and neither party shall issue any such press
release or otherwise make any such public statement, filing or other
communication without the prior consent of the other, except if such disclosure
is required by law, in which case the disclosing party shall promptly provide
the other party with prior notice of such public statement, filing or other
communication.  Notwithstanding the
foregoing, the Company shall not publicly disclose the name of any Purchaser,
or include the name of any Purchaser in any filing with the Commission or any
regulatory agency or Trading Market, without the prior written consent of such
Purchaser, except to the extent such disclosure is required by law or Trading
Market regulations, in which case the Company shall provide the Purchasers with
prior notice of such disclosure.  The
Company shall not, and shall cause each of its Subsidiaries and its and each of
their respective officers, directors, employees and agents not to, provide any
Purchaser with any material nonpublic information regarding the Company or any
of its Subsidiaries from and after the filing of the 8-K Filing without the
express written consent of such Purchaser. 
Subject to the foregoing, neither the Company nor any Purchaser shall
issue any press releases or any other public statements with respect to the
transactions contemplated hereby; provided, however, that the Company shall be
entitled, without the prior approval of any Purchaser, to make any press
release or other public disclosure with respect to such transactions (i) in
substantial conformity with the 8-K Filing and contemporaneously therewith and
(ii) as is required by applicable law and regulations (provided that in the
case of clause (i) each Purchaser shall be consulted by the Company in
connection with any such press release or other public disclosure prior to its
release).  Each press release disseminated
during the 6 months preceding the date of this Agreement did not at the time of
release contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they are made,
not misleading.

 

4.7               Use of
Proceeds.  Except as set
forth on Schedule 4.8, the Company shall use the net proceeds from
the sale of the Securities hereunder for working capital purposes and not (i)
for the satisfaction of any portion of the Company’s debt (other than payment
of trade payables, and accrued expenses in the ordinary course of the Company’s
business and prior practices), (ii) to redeem any Company equity or
equity-equivalent securities, or (iii) to settle any outstanding litigation.

 

4.8                               Reimbursement.  If any Purchaser or any of its Affiliates or any officer,
director, partner, controlling person, employee or agent of a Purchaser or any
of its Affiliates (a “Related Person”)
becomes involved in any capacity in any Proceeding brought by or against any
Person in connection with or as a result of the transactions contemplated by
the Transaction Documents, the Company will indemnify and hold harmless such
Purchaser or Related Person for its reasonable legal and other expenses (including
the costs of any investigation, preparation and travel) and for any Losses
incurred in connection therewith, as such expenses or Losses are incurred,
excluding only Losses that result directly from such Purchaser’s or Related
Person’s gross negligence or willful misconduct.  In addition, the Company shall indemnify and hold harmless each
Purchaser and Related Person from and against any and all Losses, as incurred,
arising out of or relating to any breach by the Company of any of the
representations, warranties or covenants made by the Company in this Agreement
or any other Transaction Document, or any allegation by a third party that, if
true, would constitute such a breach. 
The conduct of any Proceedings for which indemnification is available
under this paragraph shall be governed by Section 6.4(c) below.  The indemnification obligations of the
Company under this paragraph shall be in addition to any liability that the
Company may otherwise have and shall be binding upon and inure to

 

16

 

the benefit of any successors, assigns, heirs
and personal representatives of the Purchasers and any such Related
Persons.  The Company also agrees that
neither the Purchasers nor any Related Persons shall have any liability to the
Company or any Person asserting claims on behalf of or in right of the Company
in connection with or as a result of the transactions contemplated by the
Transaction Documents, except to the extent that any Losses incurred by the
Company result from the gross negligence or willful misconduct of the
applicable Purchaser or Related Person in connection with such transactions.  If the Company breaches its obligations under
any Transaction Document, then, in addition to any other liabilities the Company
may have under any Transaction Document or applicable law, the Company shall
pay or reimburse the Purchasers on demand for all costs of collection and
enforcement (including reasonable attorneys fees and expenses).  Without limiting the generality of the
foregoing, the Company specifically agrees to reimburse the Purchasers on
demand for all costs of enforcing the indemnification obligations in this
paragraph.

 

ARTICLE V

CONDITIONS

 

5.1               Conditions
Precedent to the Obligations of the Purchasers.  The obligation of each Purchaser to acquire
Securities at the Closing is subject to the satisfaction or waiver by such
Purchaser, at or before the Closing, of each of the following conditions:

 

(a)                                  Representations
and Warranties.  The
representations and warranties of the Company contained herein shall be true
and correct in all material respects as of the date when made and as of the
Closing as though made on and as of such date; and

 

(b)                                 Performance.  The Company and each other Purchaser shall
have performed, satisfied and complied in all material respects with all
covenants, agreements and conditions required by the Transaction Documents to
be performed, satisfied or complied with by it at or prior to the Closing.

 

5.2               Conditions
Precedent to the Obligations of the Company.  The obligation of the Company to sell Securities at the Closing
is subject to the satisfaction or waiver by the Company, at or before the
Closing, of each of the following conditions:

 

(a)                                  Representations
and Warranties.  The representations
and warranties of the Purchasers contained herein shall be true and correct in
all material respects as of the date when made and as of the Closing Date as
though made on and as of such date; and

 

(b)                                 Performance.  The Purchasers shall have performed, satisfied
and complied in all material respects with all covenants, agreements and
conditions required by the Transaction Documents to be performed, satisfied or
complied with by the Purchasers at or prior to the Closing.

 

ARTICLE VI

REGISTRATION RIGHTS

 

6.1               Shelf
Registration

 

(a)                                  As
promptly as possible, and in any event on or prior to the Filing Date, the
Company shall prepare and file with the Commission a “Shelf” Registration
Statement covering the resale of all Registrable Securities for an offering to
be made on a continuous basis pursuant to Rule 415.

 

17

 

The Registration Statement shall
be on Form S-3 (except if the Company is not then eligible to register for
resale the Registrable Securities on Form S-3, in which case such registration
shall be on another appropriate form in accordance herewith as the Purchasers
may consent) and shall contain (except if otherwise directed by the Purchasers
and reasonably accepted by the Company) a “Plan of Distribution” substantially
to the effect attached hereto as Exhibit D.

 

(b)                                 The
Company shall use its best efforts to cause the Registration Statement to be
declared effective by the Commission as promptly as possible after the filing
thereof, but in any event prior to the Required Effectiveness Date, and shall
use its best efforts to keep the Registration Statement continuously effective
under the Securities Act until the second anniversary of the Effective Date or
such earlier date when all Registrable Securities covered by such Registration
Statement have ceased to be Registrable Securities (the “Effectiveness Period”).

 

(c)                                  The
Company shall notify each Purchaser in writing promptly (and in any event
within one Business Day) after receiving notification from the Commission that
the Registration Statement has been declared effective.

 

(d)                                 Upon
the occurrence of any Event (as defined below) and on every monthly anniversary
thereof until the applicable Event is cured, as partial relief for the damages
suffered therefrom by the Purchasers (which remedy shall not be exclusive of
any other remedies available under this Agreement, at law or in equity), the
Company shall pay to each Purchaser an amount in cash, as liquidated damages
and not as a penalty, equal to 1.0% of the aggregate purchase price paid by
such Purchaser hereunder for the first month and 1.5% for each month
thereafter, prorated for any partial month. The payments to which a Purchaser
shall be entitled pursuant to this Section 6.1(d) are referred to
herein as “Event Payments”.  Any Event Payments payable pursuant to the
terms hereof shall apply on a pro-rata basis for any portion of a month prior
to the cure of an Event.   In the event the Company fails
to make Event Payments in a timely manner, such Event Payments shall bear
interest at the rate of 1.5% per month (prorated for partial months) until paid
in full.  Notwithstanding anything to the
contrary herein, the
provisions of this Section 6.1(d) will only apply to a Purchaser
if, at
the time of the occurrence of any Event, such Purchaser holds at least 25% of the number of Shares
issued to such Purchaser on the date hereof (the “Event Threshold”).  For the purposes of calculating the Event
Threshold, a Purchaser shall take into account the amount of Shares held by
such Purchaser and the number of Ordinary Shares issuable upon the exercise of
the Additional Investment Right and Warrants.

 

For such purposes, each of the
following shall constitute an “Event”:

 

(i)                                     the Registration Statement is not filed on or
prior to the Filing Date or is not declared effective on or prior to the
Required Effectiveness Date; provided, however, that for the purposes of the
Event Payment under this Section 6.1(d) only, the Company shall have an
additional 30 days to cure the failure to declare the Registration Statement
effective on or prior to the Required Effectiveness Date before such Event
Payment is due to the Purchasers under this Section 6.1(d);

 

(ii)                                  after
the Effective Date, a Purchaser is not permitted to sell Registrable Securities
under the Registration Statement
(or a subsequent Registration Statement filed in replacement thereof) for any
reason for five or more Trading Days (whether or not consecutive);

 

18

 

(iii)                               after
the Effective Date, any Registrable Securities covered by such Registration
Statement are not listed on an Eligible Market or the NASDAQ OTC Bulletin
Board;

 

(iv)                              the Company fails for any reason to deliver a certificate evidencing
any Securities to a Purchaser within five Trading Days after delivery of such
certificate is required pursuant to any Transaction Document, unless such
failure is due to the transfer agent’s failure to comply with timely given
instructions by the Company; or

 

(v)                                 the Company fails to have available a
sufficient number of authorized but unissued and otherwise unreserved Ordinary
Shares available to issue Underlying Shares upon any exercise of the Additional
Investment Rights or the Warrants.

 

(e)                                  [Reserved]

 

(f)                                    The
Company shall not, prior to the Effective Date of the Registration Statement,
prepare and file with the Commission a registration statement relating to an
offering for its own account or the account of others under the Securities Act
of any of its equity securities, except with respect to Excluded Stock.

 

(g)                                 In the event that the initial
Registration Statement does not include all Registrable Securities, then the
Company shall file an additional Registration Statement on the Filing Date
covering such Registrable Securities. 
The Company shall cause such additional Registration Statement to be
effective on or prior to the Required Effectiveness Date.

 

(h)                               Notwithstanding any provision in
this Agreement to the contrary, following the 30th Trading Day
following the Effective Date, the Company’s obligations hereunder to keep a
registration statement continuously in effect under the Securities Act shall be
suspended (a “Grace Period”) if, in the good faith judgment of the Company’s
Board of Directors, it is advisable to suspend the use of the Prospectus
included therein for a discrete period of time due to pending material
corporate developments or similar material events that have not yet been
publicly disclosed and as to which the Company believes that public disclosure
would be prejudicial to the Company or its stockholders; provided, that the
Registration Statement shall be suspended for a total of no more than two times
or for a period of more than twenty (20) days in any twelve (12) month period.
The provisions of this Section 6.1(d) shall not be applicable during and
shall be tolled as a result of any Grace Period. Immediately after the end of
any Grace Period under this Section 6.1(h), the Company shall take all
actions that may be reasonably necessary (including filing any required
supplemental prospectus) to restore the effectiveness of the applicable
Registration Statement and the ability of the Purchasers to publicly resell
their Registrable Securities pursuant to such effective Registration Statement.

 

6.2               Registration
Procedures.

 

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

 

(a)                                  Not less than two Trading Days
prior to the filing of a Registration Statement or any related Prospectus or
any amendment, or not less than one Trading Day for any supplement thereto
(including any document that would be incorporated or deemed to be incorporated
therein by reference), the Company shall (i) furnish to each Purchaser and any
counsel designated by any

 

19

 

Purchaser (each, a “Purchaser Counsel”, and Vertical Ventures,
LLC, a Purchaser, has initially designated Proskauer Rose LLP as its Purchaser
Counsel) copies of all such documents proposed to be filed, which documents
(other than those incorporated or deemed to be incorporated by reference) will
be subject to the review of each Purchaser and Purchaser Counsel, and (ii)
cause its officers and directors, counsel and independent certified public
accountants to respond to such inquiries as shall be necessary, in the
reasonable opinion of respective counsel, to conduct a reasonable investigation
within the meaning of the Securities Act. 
The Company shall not file a Registration Statement or any such
Prospectus or any amendments or supplements thereto to which Purchasers holding
a majority of the Registrable Securities shall reasonably object in writing.

 

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

 

(c)                                  Notify
the Purchasers of Registrable Securities to be sold and each Purchaser Counsel
as promptly as reasonably possible, and (if requested by any such Person)
confirm such notice in writing no later than one Trading Day thereafter, of any
of the following events: (i) the Commission notifies the Company whether there
will be a “review” of any Registration Statement; (ii) the Commission comments
in writing on any Registration Statement (in which case the Company shall
deliver to each Purchaser who requests a copy of such comments and of all
written responses thereto); (iii) any Registration Statement or any
post-effective amendment is declared effective; (iv) the Commission or any other
Federal or state governmental authority requests any amendment or supplement to
any Registration Statement or Prospectus or requests additional information
related thereto; (v) the Commission issues any stop order suspending the
effectiveness of any Registration Statement or initiates any Proceedings for
that purpose; (vi) the Company receives notice of any suspension of the
qualification or exemption from qualification of any Registrable Securities for
sale in any jurisdiction, or the initiation or threat of any Proceeding for
such purpose; or (vii) the financial statements included in any Registration
Statement become ineligible for inclusion therein or any statement made in any
Registration Statement or Prospectus or any document incorporated or deemed to
be incorporated therein by reference is untrue in any material respect or any
revision to a Registration Statement, Prospectus or other document is required
so that it will not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

 

(d)                                 Use
commercially reasonable efforts to avoid the issuance of or, if issued, obtain
the withdrawal of (i) any order suspending the effectiveness of any
Registration Statement, or

 

20

 

(ii) any suspension of the
qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, as soon as possible.

 

(e)                                  Furnish
to each Purchaser and Purchaser Counsel, without charge, at least one conformed
copy of each Registration Statement and each amendment thereto, including
financial statements and schedules, all documents incorporated or deemed to be
incorporated therein by reference, and all exhibits to the extent requested by
such Person (including those previously furnished or incorporated by reference)
promptly after the filing of such documents with the Commission.

 

(f)                                    Promptly
deliver to each Purchaser and Purchaser Counsel, without charge, as many copies
of the Prospectus or Prospectuses (including each form of prospectus) and each
amendment or supplement thereto as such Persons may reasonably request.  The Company hereby consents to the use of
such Prospectus and each amendment or supplement thereto by each of the selling
Purchasers in connection with the offering and sale of the Registrable
Securities covered by such Prospectus and any amendment or supplement thereto.

 

(g)                                 (i) In
the time and manner required by each Trading Market, prepare and file with such
Trading Market an additional shares listing application or notification
covering all of the Registrable Securities; (ii) use commercially reasonable efforts
to cause such Registrable Securities to be approved for listing on each Trading
Market as soon as possible thereafter; (iii) provide to the Purchasers evidence
of such notification or listing; and (iv) use commercially reasonable efforts
to maintain the listing of such Registrable Securities on each such Trading
Market or another Eligible Market.

 

(h)                                 Prior
to any public offering of Registrable Securities, use its best efforts to
register or qualify or cooperate with the selling Purchasers and respective
Purchaser Counsel in connection with the registration or qualification (or
exemption from such registration or qualification) of such Registrable
Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Purchaser requests in writing, to
keep each such registration or qualification (or exemption therefrom) effective
during the Effectiveness Period and to do any and all other acts or things
necessary or advisable to enable the disposition in such jurisdictions of the
Registrable Securities covered by a Registration Statement, provided, however,
that the Company shall not be required in connection therewith or as a
condition thereto to (a) qualify to do business in any jurisdiction where it would
not otherwise be required to qualify but for this Section 6.2(h), (b)
subject itself to general taxation in any such jurisdiction, (c) file a general
consent to service of process in any such jurisdiction, (d) provide any
undertakings that cause the Company undue expense or burden, or (e) make any
change in its articles of association.

 

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

 

(j)                                     Upon
the occurrence of any event described in Section 6.2(c)(vii), as promptly
as reasonably possible, prepare a supplement or amendment, including a
post-effective amendment, to the Registration Statement or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, and file any other required document so that, as
thereafter delivered, neither the Registration Statement nor such Prospectus
will contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to

 

21

 

make the statements therein, in
the light of the circumstances under which they were made, not misleading.

 

(k)                                  Cooperate
with any due diligence investigation undertaken by the Purchasers in connection
with the sale of Registrable Securities, including, without limitation, by
making available any documents and information; provided that the Company will
not deliver or make available to any Purchaser material, nonpublic information
unless such Purchaser specifically requests in advance to receive material, nonpublic
information in writing.

 

(l)                                     If
Holders of a majority of the Registrable Securities being offered pursuant to a
Registration Statement select underwriters for the offering, the Company shall
enter into and perform its obligations under an underwriting agreement, in
usual and customary form, including, without limitation, by providing customary
legal opinions, comfort letters and indemnification and contribution
obligations.

 

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

 

(ii)                  In
connection with the registration of the Registrable Securities, it shall be a
condition precedent to the obligations of the Company to complete the
registration pursuant to this Agreement with respect to the Registrable
Securities of a particular Purchaser (or to make any payments or other damages
to such Purchaser  pursuant to
Section 6.1) that such Purchaser shall furnish to the Company the Selling
Stockholder Questionnaire set forth on Exhibit F hereto within 10 Trading Days
of the Company’s written request.

 

6.3               Registration
Expenses.  The Company shall
pay (or reimburse the Purchasers for) all fees and expenses incident to the
performance of or compliance with this Agreement by the Company, including
without limitation (a) all registration and filing fees and expenses, including
without limitation those related to filings with the Commission, any Trading
Market and in connection with applicable state securities or Blue Sky laws, (b)
printing expenses (including without limitation expenses of printing
certificates for Registrable Securities and of printing prospectuses requested
by the Purchasers), (c) messenger, telephone and delivery expenses, (d) fees and disbursements of
counsel for the Company, (e) fees and expenses of all other
Persons retained by the Company in connection with the consummation of the
transactions contemplated by this Agreement, and (f) all listing fees to be
paid by the Company to the Trading Market.

 

6.4               Indemnification

 

(a)                                  Indemnification
by the Company.  The Company shall
indemnify and hold harmless each Purchaser, the officers, directors, partners,
members, agents, brokers (including brokers who offer and sell Registrable
Securities as principal as a result of a pledge or any failure to perform under
a margin call of Ordinary Shares), investment advisors and employees of each of
them, each Person who controls any such Purchaser (within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act)
and the officers, directors, partners, members, agents and employees of each
such controlling Person, to the fullest extent permitted by applicable law,
from and against any and all Losses, as incurred, arising out of or relating to
any untrue or alleged untrue statement of a material fact contained in the
Registration Statement, any
Prospectus or any form of prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any
omission or alleged omission of a material fact required to be stated therein
or necessary to make the statements therein (in the case of any Prospectus or
form of prospectus or supplement thereto, in the light of the circumstances
under which they were made) not misleading, except to the extent, but only to
the extent, that (i) such untrue statements, alleged untrue statements,
omissions or alleged

 

22

 

omissions are based solely upon
information regarding such Purchaser furnished in writing to the Company by
such Purchaser expressly for use therein, or to the extent that such
information relates to such Purchaser or such Purchaser’s proposed method of
distribution of Registrable Securities and was reviewed and expressly approved
in writing by such Purchaser expressly for use in the Registration Statement,
such Prospectus or such form of Prospectus or in any amendment or supplement
thereto or (ii) in
the case of an occurrence of an event of the type specified in
Section 6.2(c)(v)-(vii), the use by such Purchaser of an
outdated or defective Prospectus after the Company has notified such Purchaser
in writing that the Prospectus is outdated or defective and prior to the
receipt by such Purchaser of the Advice contemplated in Section 6.5.  The Company shall notify the Purchasers
promptly of the institution, threat or assertion of any Proceeding of which the
Company is aware in connection with the transactions contemplated by this
Agreement.

 

(b)                                 Indemnification by Purchasers. Each Purchaser shall,
severally and not jointly, indemnify and hold harmless the Company, its
directors, officers, agents and employees, each Person who controls the Company
(within the meaning of Section 15 of the Securities Act and
Section 20 of the Exchange Act), and the directors, officers, agents or
employees of such controlling Persons, to the fullest extent permitted by
applicable law, from and against all Losses (as determined by a court of
competent jurisdiction in a final judgment not subject to appeal or review)
arising solely out of any untrue statement of a material fact contained in the
Registration Statement, any Prospectus, or any form of prospectus, or in any amendment
or supplement thereto, or arising solely out of any omission of a material fact
required to be stated therein or necessary to make the statements therein (in
the case of any Prospectus or form of prospectus or supplement thereto, in the
light of the circumstances under which they were made) not misleading to the
extent, but only to the extent, that such untrue statement or omission is
contained in any information so furnished in writing by such Purchaser to the
Company specifically for inclusion in such Registration Statement or such
Prospectus or to the extent that (i) such untrue statements or omissions are
based solely upon information regarding such Purchaser furnished in writing to
the Company by such Purchaser expressly for use therein, or to the extent that
such information relates to such Purchaser or such Purchaser’s proposed method
of distribution of Registrable Securities and was reviewed and expressly
approved in writing by such Purchaser expressly for use in the Registration
Statement, such Prospectus or such form of Prospectus or in any amendment or
supplement thereto or (ii) in the case of an occurrence of an event of the type
specified in Section 6.2(c)(v)-(vii), the use by such Purchaser of
an outdated or defective Prospectus after the Company has notified such
Purchaser in writing that the Prospectus is outdated or defective and prior to
the receipt by such Purchaser of the Advice contemplated in Section 6.5.  In no event shall the liability of any
selling Purchaser hereunder be greater in amount than the dollar amount of the
net proceeds received by such Purchaser upon the sale of the Registrable
Securities giving rise to such indemnification obligation.

 

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

 

An Indemnified Party shall have
the right to employ separate counsel in any such Proceeding and to participate
in the defense thereof, but the fees and expenses of such counsel shall be

 

23

 

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

 

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

 

(d)                                 Contribution.  If a claim for indemnification under Section 6.4(a)
or (b) is unavailable to an Indemnified Party (by reason of public
policy or otherwise), then each Indemnifying Party, in lieu of indemnifying
such Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Losses, in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable
considerations.  The relative fault of
such Indemnifying Party and Indemnified Party shall be determined by reference
to, among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of
a material fact, has been taken or made by, or relates to information supplied
by, such Indemnifying Party or Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such action, statement or omission.  The
amount paid or payable by a party as a result of any Losses shall be deemed to
include, subject to the limitations set forth in Section 6.4(c),
any reasonable attorneys’ or other reasonable fees or expenses incurred by such
party in connection with any Proceeding to the extent such party would have
been indemnified for such fees or expenses if the indemnification provided for
in this Section was available to such party in accordance with its terms.

 

The parties hereto agree that
it would not be just and equitable if contribution pursuant to this Section 6.4(d)
were determined by pro rata allocation or by any other method of allocation
that does not take into account the equitable considerations referred to in the
immediately preceding paragraph. 
Notwithstanding the provisions of this Section 6.4(d), no
Purchaser shall be required to contribute, in the aggregate, any amount in
excess of the amount by which the proceeds actually received by such Purchaser
from the sale of the Registrable Securities subject to the Proceeding exceeds
the amount of any damages that such Purchaser has otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.  No Person guilty of

 

24

 

fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation.

 

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

 

6.5               Dispositions.  Each Purchaser agrees that it will comply
with the prospectus delivery requirements of the Securities Act as applicable
to it in connection with sales of Registrable Securities pursuant to the
Registration Statement.  Each Purchaser
further agrees that, upon receipt of a notice from the Company of the
occurrence of any event of the kind described in Sections 6.2(c)(v), (vi)
or (vii), such Purchaser will discontinue disposition of such
Registrable Securities under the Registration Statement until such Purchaser’s
receipt of the copies of the supplemented Prospectus and/or amended
Registration Statement contemplated by Section 6.2(j), or until it
is advised in writing (the “Advice”) by the
Company that the use of the applicable Prospectus may be resumed, and, in
either case, has received copies of any additional or supplemental filings that
are incorporated or deemed to be incorporated by reference in such Prospectus
or Registration Statement.  The Company
may provide appropriate stop orders to enforce the provisions of this
paragraph.

 

6.6               No
Piggyback on Registrations. 
Neither the Company nor any of its security holders (other than the
Purchasers in such capacity pursuant hereto) may include securities of the
Company in the Registration Statement other than the Registrable Securities,
and the Company shall not after the date hereof enter into any agreement
providing any such right to any of its security holders, in either case without
the consent of Purchasers holding a majority of the Registrable Securities.

 

6.7                               Piggy-Back Registrations.  If at any time during the Effectiveness Period there is not an
effective Registration Statement covering all of the Registrable Securities and
the Company shall determine to prepare and file with the Commission a
registration statement relating to an offering for its own account or the
account of others under the Securities Act of any of its equity securities,
other than on Form S-4 or Form S-8 (each as promulgated under the Securities
Act) or their then equivalents relating to equity securities to be issued
solely in connection with any acquisition of any entity or business or equity
securities issuable in connection with stock option or other employee benefit
plans, then the Company shall send to each Purchaser written notice of such
determination and if, within five days after receipt of such notice, any such
Purchaser shall so request in writing, the Company shall include in such
registration statement all or any part of such Registrable Securities such
Purchaser requests to be registered; provided that, if the managing underwriter
or underwriters of any such offering have informed the company, that it is
their opinion that the total number of shares which the Company (such shares,
“Primary Shares”), holders of Registrable shares and any other Person
participating in such registration (such shares, “Other Shares”) intend to
include in such offering would interfere with the successful marketing (including
pricing) of such offering, then the number of Primary Shares, Registrable
Shares and Other Shares proposed to be included in such registration shall  be included in the following order: (i)
first, the Primary shares; and (ii) second, the Registrable Shares and the
Other Shares, pro  rata among holders of Registrable Shares and
the holders of Other Shares that have requested that their Registrable Shares
or Other Shares, as applicable, be included in such registration based upon the
number of Registrable Shares or Other Shares, as applicable, that each such
holder of Registrable Shares or Other Shares has requested to be registered.

 

ARTICLE VII

MISCELLANEOUS

 

7.1               Termination.  This Agreement may be terminated by the
Company or any Purchaser, by written notice to the other parties, if the
Closing has not been consummated by the third Business

 

25

 

Day following the date of this
Agreement; provided that no such termination will affect the right of any party
to sue for any breach by the other party (or parties).

 

7.2               Fees
and Expenses.  At the Closing,
the Company shall pay to Vertical Ventures, LLC an aggregate of $30,000 for
their legal fees and expenses incurred in connection with its due diligence and
the preparation and negotiation of the Transaction Documents, of which amount
$10,000 has been previously paid by the Company to the Purchaser Counsel.  In lieu of the foregoing payment, Vertical
Ventures, LLC may retain such amount at the Closing. Except as expressly set
forth in the Transaction Documents to the contrary, each party shall pay the
fees and expenses of its advisers, counsel, accountants and other experts, if
any, and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement.  The Company shall pay all transfer agent
fees, stamp taxes and other taxes and duties levied in connection with the
issuance of the Securities.

 

7.3               Entire
Agreement.  The Transaction
Documents, together with the Exhibits and Schedules thereto, contain the entire
understanding of the parties with respect to the subject matter hereof and
supersede all prior agreements and understandings, oral or written, with
respect to such matters, which the parties acknowledge have been merged into
such documents, exhibits and schedules. 
At or after the Closing, and without further consideration, the Company
will execute and deliver to the Purchasers such further documents as may be
reasonably requested in order to give practical effect to the intention of the
parties under the Transaction Documents.

 

7.4               Notices.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (a) the date
of transmission, if such notice or communication is delivered via facsimile at
the facsimile number specified in this Section prior to 6:30 p.m. (New
York City time) on a Trading Day, (b) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section on a day that is not a Trading
Day or later than 6:30 p.m. (New York City time) on any Trading Day, (c) the
Trading Day following the date of deposit with a nationally recognized
overnight courier service, or (d) upon actual receipt by the party to whom such
notice is required to be given.  The
addresses and facsimile numbers for such notices and communications are those
set forth on the signature pages hereof, or such other address or facsimile
number as may be designated in writing hereafter, in the same manner, by any
such Person.

 

7.5               Amendments;
Waivers.  No provision of
this Agreement may be waived or amended except in a written instrument signed,
in the case of an amendment, by the Company and Purchasers collectively
purchasing at least 51% of the Shares or, in the case of a waiver, by the party
against whom enforcement of any such waiver is sought.  No waiver of any default with respect to any
provision, condition or requirement of this Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any subsequent default or a
waiver of any other provision, condition or requirement hereof, nor shall any
delay or omission of either party to exercise any right hereunder in any manner
impair the exercise of any such right. 
Notwithstanding the foregoing, a waiver or consent to depart from the
provisions hereof with respect to a matter that relates exclusively to the
rights of Purchasers under Article VI and that does not directly or
indirectly affect the rights of other Purchasers may be given by Purchasers
holding at least a majority of the Registrable Securities to which such waiver
or consent relates.

 

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

 

26

 

7.7               Successors
and Assigns.  This Agreement
shall be binding upon and inure to the benefit of the parties and their
successors and permitted assigns.  The
Company may not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Purchasers. Any Purchaser may assign
its rights under this Agreement to any Person to whom such Purchaser assigns or
transfers any Securities, provided such transferee agrees in writing to be
bound, with respect to the transferred Securities, by the provisions hereof
that apply to the “Purchasers.” 
Notwithstanding anything to the contrary herein, Securities may be
assigned to any Person in connection with a bona fide margin account or other
loan or financing arrangement secured by such Securities.

 

7.8               No
Third-Party Beneficiaries. 
This Agreement is intended for the benefit of the parties hereto and
their respective successors and permitted assigns and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person, except that
each Related Person is an intended third party beneficiary of Section 4.8
and each Indemnified Party is an intended third party beneficiary of
Section 6.4 and (in each case) may enforce the provisions of such Sections
directly against the parties with obligations thereunder.

 

7.9               Governing Law; Venue; Waiver Of
Jury Trial.  ALL QUESTIONS CONCERNING THE
CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL
BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK. THE COMPANY AND PURCHASERS HEREBY IRREVOCABLY SUBMIT TO THE
EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF
NEW YORK, BOROUGH OF MANHATTAN FOR THE ADJUDICATION OF ANY DISPUTE BROUGHT BY
THE COMPANY OR ANY PURCHASER HEREUNDER, IN CONNECTION HEREWITH OR WITH ANY TRANSACTION
CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE
ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVE,
AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BY THE
COMPANY OR ANY PURCHASER, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE
JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING IS
IMPROPER.  EACH PARTY HEREBY IRREVOCABLY
WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY
SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR
CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY
AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT
SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE
THEREOF.  NOTHING CONTAINED HEREIN SHALL
BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER
PERMITTED BY LAW.  THE COMPANY AND
PURCHASERS HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY.

 

7.10           Survival.  The representations and warranties shall
survive for two years following the Closing. The agreements and covenants
contained herein shall survive the Closing and the delivery and/or exercise of
the Securities, as applicable.

 

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

 

27

 

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

 

7.13           Rescission
and Withdrawal Right. 
Notwithstanding anything to the contrary contained in (and without
limiting any similar provisions of) the Transaction Documents, whenever any
Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within
the periods therein provided, then such Purchaser may rescind or withdraw, in
its sole discretion from time to time upon written notice to the Company, any
relevant notice, demand or election in whole or in part without prejudice to
its future actions and rights.

 

7.14           Replacement
of Securities.  If any certificate
or instrument evidencing any Securities is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and
substitution for and upon cancellation thereof, or in lieu of and substitution
therefor, a new certificate or instrument, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction and
customary and reasonable indemnity, if requested.  The applicants for a new certificate or instrument under such
circumstances shall also pay any reasonable third-party costs associated with
the issuance of such replacement Securities.

 

7.15           Remedies.  In addition to being entitled to exercise
all rights provided herein or granted by law, including recovery of damages,
each of the Purchasers and the Company will be entitled to specific performance
under the Transaction Documents.  The
parties agree that monetary damages may not be adequate compensation for any
loss incurred by reason of any breach of obligations described in the foregoing
sentence and hereby agrees to waive in any action for specific performance of
any such obligation the defense that a remedy at law would be adequate.

 

7.16           Payment
Set Aside.  To the extent that
the Company makes a payment or payments to any Purchaser hereunder or pursuant
to either the Additional Investment Rights or the Warrants, or any Purchaser
enforces or exercises its rights hereunder or thereunder, and such payment or
payments or the proceeds of such enforcement or exercise or any part thereof
are subsequently invalidated, declared to be fraudulent or preferential, set
aside, recovered from, disgorged by or are required to be refunded, repaid or
otherwise restored to the Company by a trustee, receiver or any other person
under any law (including, without limitation, any bankruptcy law, state or
federal law, common law or equitable cause of action), then to the extent of
any such restoration the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not occurred.

 

7.17           Adjustments
in Share Numbers and Prices. 
In the event of any stock split, subdivision, dividend or distribution
payable in Ordinary Shares (or other securities or rights convertible into, or
entitling the holder thereof to receive directly or indirectly Ordinary
Shares), combination or other similar recapitalization or event occurring after
the date hereof, each reference in any Transaction Document to a number of
shares or a price per share shall be amended to appropriately account for such
event.

 

7.18           Independent
Nature of Purchasers’ Obligations and Rights.  The obligations of each Purchaser under any Transaction Document
are several and not joint with the obligations of any other Purchaser, and no
Purchaser shall be responsible in any way for the performance of the
obligations of any other Purchaser under any Transaction Document.  The decision of each Purchaser to purchase

 

28

 

Shares pursuant to this
Agreement has been made by such Purchaser independently of any other Purchaser
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 or
of the Subsidiary which may have been made or given by any other Purchaser or
by any agent or employee of any other Purchaser, and no Purchaser or any of its
agents or employees shall have any liability to any other Purchaser (or any
other person) relating to or arising from any such information, materials,
statements or opinions.  Nothing
contained herein or in any Transaction Document, and no action taken by any
Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by
the Transaction Document.  Each
Purchaser acknowledges that no other Purchaser has acted as agent for such
Purchaser in connection with making its investment hereunder and that no other
Purchaser will be acting as agent of such Purchaser in connection with
monitoring its investment hereunder. 
Each Purchaser shall be entitled to independently protect and enforce
its rights, including without limitation the rights arising out of this
Agreement or out of the other Transaction Documents, and it shall not be
necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose. Each Purchaser represents that it has been represented by
its own separate legal counsel in its review and negotiations of this Agreement
and the Transaction Documents.  For
reasons of administrative convenience only, the Purchasers acknowledge and
agree that they and their respective counsel have chosen to communicate with
the Company through Proskauer Rose LLP, but Proskauer Rose LLP represents only
Vertical Ventures, LLC.

 

[SIGNATURE PAGES TO FOLLOW]

 

29

 

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

 

 

	
   

  	
  RADVIEW
  SOFTWARE LTD..

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
  7 New England Exec. Park

  
	
   

  	
  Burlington, MA  01803

  
	
   

  	
  Phone: (781) 238-1100

  
	
   

  	
  Fax: (781) 238-8875

  
	
   

  	
  Attn: 
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  With a copy to:Sharir, Shiv,
  Friedman & Co.

  
	
   

  	
  3 Azrieli Center, Triangular Tower

  
	
   

  	
  Tel Aviv 67023 Israel

  
	
   

  	
  Facsimile No.: 972-3-607-4778

  
	
   

  	
  Telephone No.: 972-3-607-4777

  
	
   

  	
  Attn:  Galai Sharir, Adv.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Fulbright & Jaworski L.L.P.

  
	
   

  	
  666 Fifth Avenue

  
	
   

  	
  New York, New York  10103

  
	
   

  	
  Facsimile No.:  212-318-3400

  
	
   

  	
  Telephone No.:  212-318-3000

  
	
   

  	
  Attn: 
  Neil Gold, Esq.

  

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES FOR PURCHASERS FOLLOW]

 

 

	
   

  	
  VERTICAL VENTURES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Joshua Silverman

  	
   

  
	
   

  	
  Title:

  	
  Partner

  	
   

  
	
   

  	
   

  
	
   

  	
  Taxpayer Identification No.:

  
	
   

  	
   

  
	
   

  	
  Number of Units:

  	
  458,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Additional
  Investment Rights:

  	
  458,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant A:

  	
  137,500

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant B:

  	
  91,667

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant C:

  	
  45,833

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant D:

  	
  45,833

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
  Vertical Ventures, LLC

  
	
   

  	
  641 Lexington Ave, 26th
  Floor

  
	
   

  	
  New York, NY  10022

  
	
   

  	
  Facsimile No.:  (212) 207-3452

  
	
   

  	
  Telephone No.: (212) 974-3070

  
	
   

  	
  Attn: Joshua Silverman

  
	
   

  	
   

  
	
  With a copy to: Proskauer
  Rose LLP

  
	
   

  	
  1585 Broadway

  
	
   

  	
  New York, New York 10036-8299

  
	
   

  	
  Facsimile No.:  (212) 969-2900

  
	
   

  	
  Telephone No.:  (212) 969-3000

  
	
   

  	
  Attn: 
  Adam J. Kansler, Esq.

  
											

 

 

	
   

  	
  SMITHFIELD FIDUCIARY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Scott M. Wallace

  
	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  Taxpayer Identification No.:

  	
   

  	
   

  
	
   

  	
   

  
						

 

	
   

  	
  Number of Units:

  	
  833,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Additional
  Investment Rights:

  	
  833,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant A:

  	
  250,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant B:

  	
  166,667

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant C:

  	
  83,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant D:

  	
  83,333

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
  c/o Highbridge Capital
  Management, LLC

  
	
   

  	
  9 West 57th Street,
  27th  Floor

  
	
   

  	
  New York, NY 10019

  
	
   

  	
  Facsimile No.:  (212) 751-0755

  
	
   

  	
  Telephone No.: (212) 287-4720

  
	
   

  	
  Attn:  Ari J. Storch / Adam J. Chill

  
								

 

 

	
   

  	
  OMICRON
  MASTER TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Bruce Bernstein

  
	
   

  	
  Title:

  	
  Managing Partner

  
	
   

  	
   

  
	
   

  	
  Taxpayer Identification No.:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Number of Units:

  	
  416,666

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Additional
  Investment Rights:

  	
  416,666

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant A:

  	
  125,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant B:

  	
  83,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant C:

  	
  41,666

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant D:

  	
  41,666

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
  810 Seventh Ave., 39th
  Fl.

  
	
   

  	
  New York, NY 10019

  
	
   

  	
  Facsimile No.:  (212) 803-5263

  
	
   

  	
  Telephone No.: (212) 803-5269

  
	
   

  	
  Attn:  Brian Daly

  
	
   

  	
   

  
											

 

 

	
   

  	
  CRANSHIRE CAPITAL, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Keith Goodman

  
	
   

  	
  Title:

  	
  CFO—Downsview Capital

  
	
   

  	
   

  	
  The General Partner

  
	
   

  	
   

  
	
   

  	
  Taxpayer Identification No.:

  
	
   

  	
   

  
	
   

  	
  Number of Units:

  	
  333,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Additional
  Investment Rights:

  	
  333,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant A:

  	
  100,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant B:

  	
  66,667

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant C:

  	
  33,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant D:

  	
  33,333

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
  Cranshire Capital, LP

  
	
   

  	
  666 Dundee Rd., Suite 1901

  
	
   

  	
  Northbrook, IL 60062

  
	
   

  	
  Facsimile No.:  (847) 562-9031

  
	
   

  	
  Telephone No.: (847) 562-9030

  
	
   

  	
  Attn:  Mitchell P. Kopin

  
										

 

 

	
   

  	
  SCOT COHEN

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Scot Cohen

  
	
   

  	
  Title:

  	
  Managing Partner

  
	
   

  	
   

  
	
   

  	
  Taxpayer Identification No.:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Number of Units:

  	
  50,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Additional
  Investment Rights:

  	
  50,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant A:

  	
  15,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant B:

  	
  10,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant C:

  	
  5,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant D:

  	
  5,000

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
  Vertical Ventures LLC

  
	
   

  	
  641 Lexington Avenue

  
	
   

  	
  New York, NY 10022

  
	
   

  	
  Facsimile No.:  (212) 207-3452

  
	
   

  	
  Telephone
  No.: (212) 974-3070

  
	
   

  	
  Attn:  Scot Cohen

  
											

 

 

	
   

  	
  AMNON MANDELBAUM

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Amnon Mandelbaum

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Taxpayer Identification No.:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Number of Units:

  	
  180,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Additional
  Investment Rights:

  	
  180,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant A:

  	
  54,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant B:

  	
  36,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant C:

  	
  18,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant D:

  	
  18,000

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
  345 East 94th Street, Apt. 14A

  
	
   

  	
  New York, NY 10128

  
	
   

  	
  Facsimile No.:  (212) 750-7277

  
	
   

  	
  Telephone No.: (212) 421-1616

  
	
   

  	
  Attn: 
  Amnon Mandelbaum

  
												

 

 

	
   

  	
  IROQUOIS CAPITAL LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Joshua Silverman

  
	
   

  	
  Title:

  	
  Partner

  	
   

  
	
   

  	
   

  
	
   

  	
  Taxpayer Identification No.:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Number of Units:

  	
  166,667

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Additional
  Investment Rights:

  	
  166,667

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant A:

  	
  50,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant B:

  	
  33,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant C:

  	
  16,667

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant D:

  	
  16,667

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
  Iroquois Capital LP

  
	
   

  	
  641 Lexington Ave., 26th Floor

  
	
   

  	
  New York, NY 110022

  
	
   

  	
  Facsimile No.:  (212) 207-3452

  
	
   

  	
  Telephone No.: (212) 974-3070

  
	
   

  	
  Attn:  
  Joshua Silverman

  
	
   

  	
   

  
	
  With a copy to: 

  	
  Proskauer Rose LLP

  
	
   

  
	
   

  	
  1585 Broadway

  
	
   

  	
  New York, New York 10036-2900

  
	
   

  	
  Facsimile No.:  (212) 969-2900

  
	
   

  	
  Telephone No.:  (212) 969-3000

  
	
   

  	
  Attn: 
  Adam J. Kansler, Esq.

  
	
   

  	
   

  
												

 

 

 

	
   

  	
  DAVID I. GOODFRIEND

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  David I. Goodfriend

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Taxpayer Identification No.:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Number of Units:

  	
  20,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Additional
  Investment Rights:

  	
  20,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant A:

  	
  6,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant B:

  	
  4,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant C:

  	
  2,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant D:

  	
  2,000

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
  10 Camelot Drive

  
	
   

  	
  Livingston, NJ 07039

  
	
   

  	
  Facsimile No.:  (212) 750-7277

  
	
   

  	
  Telephone No.: (212) 421-1616

  
	
   

  	
  Attn: 
  David I. Goodfriend

  
												

 

 

	
   

  	
  F. BERDON CO. LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Frederick Berdon

  
	
   

  	
  Title:

  	
  Partner

  	
   

  
	
   

  	
   

  
	
   

  	
  Taxpayer Identification No.:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Number of Units:

  	
  125,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Additional
  Investment Rights:

  	
  125,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant A:

  	
  37,500

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant B:

  	
  25,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant C:

  	
  12,500

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant D:

  	
  12,500

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
  717 Post Road, Suite 105

  
	
   

  	
  Scarsdale, NY 10577

  
	
   

  	
  Facsimile No.:  (914) 694-6335

  
	
   

  	
  Telephone No.: (914) 694-5857

  
	
   

  	
  Attn: 
  Frederick Berdon

  
												

 

 

	
   

  	
  PLATINUM LONG TERM GROWTH LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Mark Nordlicht

  
	
   

  	
  Title:

  	
  General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
  Taxpayer Identification No.:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Number of Units:

  	
  333,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Additional
  Investment Rights:

  	
  333,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant A:

  	
  100,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant B:

  	
  66,667

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant C:

  	
  33,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant D:

  	
  33,333

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
  152 W. 53rd Street, 54th
  Floor

  
	
   

  	
  New York, NY 10019

  
	
   

  	
  Facsimile No.:  (212) 581-0002

  
	
   

  	
  Telephone No.: (212) 581-0500

  
	
   

  	
  Attn: 
  Mark Nordlicht

  
												

 

 

	
   

  	
  ALEXANDRA GLOBAL MASTER FUND
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Alexandra Investment Management, as
  Investment Advisor

  
	
   

  	
  Name:

  	
  Vadim Iosilevich

  
	
   

  	
  Title:

  	
  Principal

  	
   

  
	
   

  	
   

  
	
   

  	
  Taxpayer Identification No.:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Number of Units:

  	
  333,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Additional
  Investment Rights:

  	
  333,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant A:

  	
  100,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant B:

  	
  66,667

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant C:

  	
  33,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant D:

  	
  33,333

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
  Alexandra Investment Management

  
	
   

  	
  767 Third Avenue, 39th Floor

  
	
   

  	
  New York, NY 10017

  
	
   

  	
  Facsimile No.:  (212) 202-4293

  
	
   

  	
  Telephone No.: (212) 301-1858

  
	
   

  	
  Attn: 
  Slava Volman

  
											

 

 

	
   

  	
  PAUL MASTERS

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Paul Masters

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Taxpayer Identification No.:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Number of Units:

  	
  83,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Additional
  Investment Rights:

  	
  83,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant A:

  	
  25,000

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant B:

  	
  16,667

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant C:

  	
  8,333

  	
   

  
	
   

  	
   

  
	
   

  	
  Underlying Shares subject to

  
	
   

  	
  Warrant D:

  	
  8,333

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  
	
   

  	
  100 S. Salem Road

  
	
   

  	
  Ridgefield, CT 06877

  
	
   

  	
  Facsimile No.:  (914) 694-6335

  
	
   

  	
  Telephone No.: (914) 694-5857

  
	
   

  	
  Attn: 
  Paul Master

  
											

 

 

	
  Exhibits:

  
	
   

  
	
  A

  	
   

  	
  Form of Additional Investment Right

  
	
  B

  	
   

  	
  Form of Warrant

  
	
  C

  	
   

  	
  Opinion of Company Counsel

  
	
  D

  	
   

  	
  Plan of Distribution

  
	
  E

  	
   

  	
  Transfer Agent Instructions

  
	
  F

  	
   

  	
  Selling Stockholder QuestionnaireExhibit 10.2

 

EXHIBIT A

 

NEITHER THESE SECURITIES NOR THE SECURITIES
ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS.  THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF
THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

RADVIEW SOFTWARE LTD.

 

ADDITIONAL INVESTMENT RIGHT 

 

	
  Additional Investment Right No. [  ]

  	
   

  	
  Dated: 
  March 11, 2004

  

 

RadView Software Ltd., an Israeli corporation
(the “Company”), hereby certifies
that, for value received, [Name of Holder] or its registered assigns (the “Holder”), is entitled to purchase from the
Company up to a total of
[          ](1) Ordinary
Shares, NIS 0.01 par value per share (the “Ordinary
Shares”), of the Company (each such share, a “Additional Investment Right Share” and all
such shares, the “Additional Investment Right
Shares”) at an exercise price equal to $0.81 per share (as adjusted
from time to time as provided in Section 9, the “Exercise Price”), at any time commencing on
the date hereof and through and including the date that is one year after the
Effective Date (the “Expiration Date”),
and subject to the following terms and conditions. This Additional Investment
Right (this “Additional Investment Right”)
is one of a series of similar additional investment rights issued pursuant to
that certain Securities Purchase Agreement, dated as of the date hereof, by and
among the Company and the Purchasers identified therein (the “Purchase Agreement”).  All such additional investment rights are
referred to herein, collectively, as the “Additional
Investment Rights.”

 

1.             Definitions.  In addition to the terms defined elsewhere
in this Additional Investment Right, capitalized terms that are not otherwise
defined herein have the meanings given to such terms in the Purchase Agreement.

 

2.             Registration of Additional
Investment Right.  The Company shall
register this Additional Investment Right, upon records to be maintained by the
Company for that purpose (the “Additional Investment Right Register”), in the name of the record
Holder hereof from time to time.  The
Company may deem and treat the registered Holder of this Additional Investment
Right as the absolute owner hereof for the purpose of any exercise hereof or
any distribution to the Holder, and for all other purposes, absent actual
notice to the contrary.

 

(1) Equal to 100% of the Common Stock Ordinary Shares purchased by the
Purchaser named herein under the Purchase Agreement.

 

 

3.             Registration of Transfers.  The Company shall register the transfer of
any portion of this Additional Investment Right in the Additional Investment
Right Register, upon surrender of this Additional Investment Right, with the
Form of Assignment attached hereto duly completed and signed, to the Transfer
Agent or to the Company at its address specified herein.  Upon any such registration or transfer, a
new warrant to purchase Ordinary Shares, in substantially the form of this
Additional Investment Right (any such new warrant, a “New Additional Investment Right”), evidencing the portion of
this Additional Investment Right so transferred shall be issued to the
transferee and a New Additional Investment Right evidencing the remaining
portion of this Additional Investment Right not so transferred, if any, shall
be issued to the transferring Holder. 
The acceptance of the New Additional Investment Right by the transferee
thereof shall be deemed the acceptance by such transferee of all of the rights
and obligations of a holder of an Additional Investment Right.

 

4.             Exercise and Duration of
Additional Investment Rights.

 

(a)                                  This Additional Investment Right
shall be exercisable by the registered Holder at any time and from time to time
on or after the date hereof to and including the Expiration Date.  At 6:30 P.M., New York City time on the
Expiration Date, the portion of this Additional Investment Right not exercised
prior thereto shall be and become void and of no value. Notwithstanding
anything to the contrary herein, the Expiration Date shall be extended for each
day following the Effective Date that the Registration Statement is not
effective.

 

(b)                                 The Holder may exercise this
Additional Investment Right by delivering to the Company (i) an exercise
notice, in the form attached hereto (the “Exercise Notice”), appropriately completed and duly signed, and
(ii) payment of the Exercise Price for the number of Additional Investment
Right Shares as to which this Additional Investment Right is being exercised
(which may take the form of a “cashless exercise” if so indicated in the
Exercise Notice and if a “cashless exercise” may occur at such time pursuant to
Section 10 below), and the date such items are delivered to the Company
(as determined in accordance with the notice provisions hereof) is an “Exercise Date.”  The Holder shall not be required to deliver the original
Additional Investment Right in order to effect an exercise hereunder.  Execution and delivery of the Exercise Notice
shall have the same effect as cancellation of the original Additional
Investment Right and issuance of a New Additional Investment Right evidencing
the right to purchase the remaining number of Additional Investment Right
Shares.

 

5.             Delivery of Additional
Investment Right Shares.

 

(a)                                  Upon exercise of this Additional
Investment Right, the Company shall promptly (but in no event later than three
Trading Days after the Exercise Date) issue or cause to be issued and cause to
be delivered to or upon the written order of the Holder and in such name or
names as the Holder may designate, a certificate for the Additional Investment
Right Shares issuable upon such exercise, free of restrictive legends unless a
registration statement covering the resale of the Additional Investment Right
Shares and naming the Holder as a selling shareholder thereunder is not then
effective and the Additional Investment Right Shares are not freely
transferable without volume restrictions and other requirements pursuant to
Rule 144 under the Securities Act.  The
Holder, or any Person so designated by the Holder to receive Additional
Investment Right Shares, shall be deemed to have become holder of record of
such Additional Investment Right Shares as of the Exercise Date.  The Company shall, upon request of the
Holder, use its best efforts to deliver Additional Investment Right Shares
hereunder electronically through the Depository Trust Company or another
established clearing corporation performing similar functions.

 

(b)                                 This Additional Investment Right
is exercisable, either in its entirety or, from time to time, for a portion of
the number of Additional Investment Right Shares.  Upon surrender of this

 

2

 

Additional Investment Right following one or
more partial exercises, the Company shall issue or cause to be issued, at its
expense, a New Additional Investment Right evidencing the right to purchase the
remaining number of Additional Investment Right Shares.

 

(c)                                  In addition to any other rights
available to a Holder, if the Company fails to deliver to the Holder a
certificate representing Additional Investment Right Shares on the date on
which delivery of such certificate is required by this Additional Investment
Right, and if after such date the Holder purchases (in an open market
transaction or otherwise) Ordinary Shares to deliver in satisfaction of a sale
by the Holder of the Additional Investment Right Shares that the Holder
anticipated receiving from the Company (a “Buy-In”), then the Company shall, within three Trading Days after
the Holder’s request and in the Holder’s discretion, either (i) pay cash to the
Holder in an amount equal to the Holder’s total purchase price (including
brokerage commissions, if any) for the Ordinary Shares so purchased (the “Buy-In Price”), at which point the Company’s
obligation to deliver such certificate (and to issue such Ordinary Shares)
shall terminate, or (ii) promptly honor its obligation to deliver to the Holder
a certificate or certificates representing such Ordinary Shares and pay cash to
the Holder in an amount equal to the excess (if any) of the Buy-In Price over
the product of (A) such number of Ordinary Shares, times (B) the Closing Price
on the date of the event giving rise to the Company’s obligation to deliver
such certificate. Notwithstanding anything to the contrary, this
Section 5(c) shall not apply if the Company has used its best efforts to
deliver the certificates, but such certificates were not delivered due to the
Transfer Agent’s gross negligence to deliver the certificates in accordance with
timely instructions from the Company.

 

(d)                                 The Company’s obligations to
issue and deliver Additional Investment Right Shares in accordance with the
terms hereof are absolute and unconditional, irrespective of any action or
inaction by the Holder to enforce the same, the recovery of any judgment
against any Person or any action to enforce the same, or any setoff,
counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder or any other Person of any obligation to the Company or
any violation or alleged violation of law by the Holder or any other Person,
and irrespective of any other circumstance which might otherwise limit such
obligation of the Company to the Holder in connection with the issuance of
Additional Investment Right Shares. 
Nothing herein shall limit a Holder’s right to pursue any other remedies
available to it hereunder, at law or in equity including, without limitation, a
decree of specific performance and/or injunctive relief with respect to the
Company’s failure to timely deliver certificates representing Ordinary Shares
upon exercise of the Additional Investment Right  as required pursuant to the terms hereof.

 

6.             Charges, Taxes and Expenses.   Issuance and delivery of certificates for
Ordinary Shares upon exercise of this Additional Investment Right shall be made
without charge to the Holder for any issue or transfer tax, withholding tax,
transfer agent fee or other incidental tax or expense in respect of the
issuance of such certificates, all of which taxes and expenses shall be paid by
the Company; provided, however, that the Company shall not be required to pay
any tax which may be payable in respect of any transfer involved in the
registration of any certificates for Additional Investment Right Shares or
Additional Investment Rights in a name other than that of the Holder or an
Affiliate thereof.  The Holder shall be
responsible for all other tax liability that may arise as a result of holding
or transferring this Additional Investment Right or receiving Additional
Investment Right Shares upon exercise hereof.

 

7.             Replacement of Additional
Investment Right.  If this
Additional Investment Right is mutilated, lost, stolen or destroyed, the
Company shall issue or cause to be issued in exchange and substitution for and
upon cancellation hereof, or in lieu of and substitution for this Additional
Investment Right, a New Additional Investment Right, but only upon receipt of
evidence reasonably satisfactory to the Company of such loss, theft or
destruction and customary and reasonable bond or indemnity, if requested.  Applicants for a New Additional Investment
Right under such circumstances shall also

 

3

 

comply with such other reasonable regulations
and procedures and pay such other reasonable third-party costs as the Company
may prescribe.

 

8.             Reservation of Additional
Investment Right Shares.  The
Company covenants that it will at all times reserve and keep available out of
the aggregate of its authorized but unissued and otherwise unreserved Ordinary
Shares, solely for the purpose of enabling it to issue Additional Investment
Right Shares upon exercise of this Additional Investment Right as herein
provided, the number of Additional Investment Right Shares which are then
issuable and deliverable upon the exercise of this entire Additional Investment
Right, free from preemptive rights or any other contingent purchase rights of
persons other than the Holder (after giving effect to the adjustments and
restrictions of Section 9, if any). The Company covenants that all
Additional Investment Right Shares so issuable and deliverable shall, upon
issuance and the payment of the applicable Exercise Price in accordance with
the terms hereof, be duly and validly authorized, issued and fully paid and
nonassessable.  The
Company will take all such action as may be necessary to assure that such Ordinary
Shares may be issued as provided herein without violation of any applicable law
or regulation, or of any requirements of any securities exchange or automated
quotation system upon which the Ordinary Shares may be listed.

 

9.             Certain Adjustments.  The Exercise Price and number of Additional
Investment Right Shares issuable upon exercise of this Additional Investment
Right are subject to adjustment from time to time as set forth in this Section 9.

 

(a)                                  Stock Dividends and Splits.  If the Company, at any time while this Additional Investment
Right is outstanding, (i) pays a stock dividend on its Ordinary Shares or
otherwise makes a distribution on any class of capital stock that is payable in
Ordinary Shares, (ii) subdivides outstanding Ordinary Shares into a larger
number of shares, or (iii) combines outstanding Ordinary Shares into a smaller
number of shares, then in each such case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of Ordinary Shares
outstanding immediately before such event and of which the denominator shall be
the number of Ordinary Shares outstanding immediately after such event.  Any adjustment made pursuant to clause (i)
of this paragraph shall become effective immediately after the record date for
the determination of stockholders entitled to receive such dividend or
distribution, and any adjustment pursuant to clause (ii) or (iii) of this
paragraph shall become effective immediately after the effective date of such
subdivision or combination.

 

(b)                                 Pro Rata Distributions.  If the Company, at any time while this Additional Investment
Right is outstanding, distributes to holders of Ordinary Shares (i) evidences
of its indebtedness, (ii) any security (other than a distribution of Ordinary
Shares covered by the preceding paragraph), (iii) rights or warrants to
subscribe for or purchase any security, or (iv) any other asset (in each case,
“Distributed
Property”),
then, the Company will deliver to such Holder the Distributed Property that
such Holder would have been entitled to receive in respect of the Additional
Investment Right Shares for which this Additional Investment Right could have
been exercised immediately prior to such record date.  If such Distributed Property is not delivered to a Holder
pursuant to the preceding sentence, then upon expiration of or any exercise of
the Additional Investment Right that occurs after such record date, such Holder
shall remain entitled to receive, in addition to the Additional Investment
Right Shares otherwise issuable upon such exercise (if applicable), such
Distributed Property.

 

(c)                                  Fundamental Transactions.  If, at any time while this Additional Investment Right is
outstanding, (i) the Company effects any merger or consolidation of the Company
with or into another Person, (ii) the Company effects any sale of all or
substantially all of its assets in one or a series of related transactions,
(iii) any tender offer or exchange offer (whether by the Company or another
Person) is completed pursuant to which holders of Ordinary Shares are permitted
to tender or exchange their shares for other securities, cash or property, or
(iv) the Company effects any reclassification of the

 

4

 

Ordinary Shares or any compulsory share
exchange pursuant to which the Ordinary Shares is effectively converted into or
exchanged for other securities, cash or property (other than as a result of a
subdivision or combination of Ordinary Shares covered by Section 9(a)
above) (in any such case, a “Fundamental Transaction”), then the Holder shall have
the right thereafter to receive, upon exercise of this Additional Investment
Right, the same amount and kind of securities, cash or property as it would
have been entitled to receive upon the occurrence of such Fundamental
Transaction if it had been, immediately prior to such Fundamental Transaction,
the holder of the number of Additional Investment Right Shares then issuable
upon exercise in full of this Additional Investment Right (the “Alternate Consideration”).  The aggregate Exercise Price for this Additional Investment Right
will not be affected by any such Fundamental Transaction, but the Company shall
apportion such aggregate Exercise Price among the Alternate Consideration in a
reasonable manner reflecting the relative value of any different components of
the Alternate Consideration.  If holders
of Ordinary Shares are given any choice as to the securities, cash or property
to be received in a Fundamental Transaction, then the Holder shall be given the
same choice as to the Alternate Consideration it receives upon any exercise of
this Additional Investment Right following such Fundamental Transaction.  At the Holder’s request, any successor to
the Company or surviving entity in such Fundamental Transaction shall issue to
the Holder a new additional investment right consistent with the foregoing
provisions and evidencing the Holder’s right to purchase the Alternate
Consideration for the aggregate Exercise Price upon exercise thereof.  If any Fundamental Transaction constitutes
or results in (a) a “going private” transaction as defined in Rule 13e-3 under
the Exchange Act, or (b) an acquisition for cash, or (c) an acquisition, merger
or sale with or into a Person not traded on an Eligible Market, then the
Company (or any such successor or surviving entity) will redeem this Additional
Investment Right from the Holder for a purchase price, payable in cash on the
closing date of such “going private” transaction, equal to the Black Scholes
value of the remaining unexercised portion of this Additional Investment Right
on the closing date of such “going private” transaction.

 

(d)                                 Number of Additional Investment
Right Shares.  Simultaneously with any adjustment to the
Exercise Price pursuant to paragraphs (a) or (b) of this Section, the number of
Additional Investment Right Shares that may be purchased upon exercise of this
Additional Investment Right shall be increased or decreased proportionately, so
that after such adjustment the aggregate Exercise Price payable hereunder for
the increased or decreased number of Additional Investment Right Shares shall
be the same as the aggregate Exercise Price in effect immediately prior to such
adjustment.

 

(e)                                  Number of Additional Investment
Right Shares.  Simultaneously with any adjustment to the
Exercise Price pursuant to paragraphs (a), (b) or (d) of this Section, the
number of Additional Investment Right Shares that may be purchased upon
exercise of this Additional Investment Right shall be increased
proportionately, so that after such adjustment the aggregate Exercise Price
payable hereunder for the increased number of Additional Investment Right
Shares shall be the same as the aggregate Exercise Price in effect immediately
prior to such adjustment.

 

(f)                                    Calculations.  All calculations under this Section 9 shall be made
to the nearest cent or the nearest 1/100th of a share, as applicable.  The number of Ordinary Shares outstanding at
any given time shall not include shares owned or held by or for the account of
the Company, and the disposition of any such shares shall be considered an
issue or sale of Ordinary Shares.

 

(g)                                 Notice of Adjustments.  Upon the occurrence of each adjustment pursuant to this Section 9,
the Company at its expense will promptly compute such adjustment in accordance
with the terms of this Additional Investment Right and prepare a certificate
setting forth such adjustment, including a statement of the adjusted Exercise
Price and adjusted number or type of Additional Investment Right Shares or
other securities issuable upon exercise of this Additional Investment Right (as
applicable), describing the transactions giving rise to such adjustments and
showing in detail the facts

 

5

 

upon which such adjustment is based.  Upon written request, the Company will
promptly deliver a copy of each such certificate to the Holder and to the Company’s
Transfer Agent.

 

(h)                                 Notice of Corporate Events.  If the Company (i) declares a dividend or any other distribution
of cash, securities or other property in respect of its Ordinary Shares,
including without limitation any granting of rights or warrants to subscribe
for or purchase any capital stock of the Company or any Subsidiary, (ii)
authorizes or approves, enters into any agreement contemplating or solicits
stockholder approval for any Fundamental Transaction or (iii) authorizes the
voluntary dissolution, liquidation or winding up of the affairs of the Company,
then the Company shall deliver to the Holder a notice describing the material
terms and conditions of such transaction, at least 10 calendar days prior to
the applicable record or effective date on which a Person would need to hold
Ordinary Shares in order to participate in or vote with respect to such
transaction, and the Company will take all steps reasonably necessary in order
to insure that the Holder is given the practical opportunity to exercise this
Additional Investment Right prior to such time so as to participate in or vote
with respect to such transaction; provided, however, that the failure to
deliver such notice or any defect therein shall not affect the validity of the
corporate action required to be described in such notice.

 

10.           Payment of Exercise Price.  The Holder shall pay the Exercise Price in
immediately available funds; provided, however, if the Registration Statement
did not become effective on or before Required Effectiveness Date and is not
continuously effective through the Expiration Date, the Holder may satisfy its
obligation to pay the Exercise Price through a “cashless exercise,” in which
event the Company shall issue to the Holder the number of Additional Investment
Right Shares determined as follows:

 

	
   

  	
  X = Y [(A-B)/A]

  
	
  where:

  	
   

  
	
   

  	
  X = the number of Additional Investment Right Shares to be issued to
  the Holder.

  
	
   

  	
   

  
	
   

  	
  Y = the number of Additional Investment Right Shares with respect to
  which this Additional Investment Right is being exercised.

  
	
   

  	
   

  
	
   

  	
  A = the average of the Closing Prices for the five Trading Days
  immediately prior to (but not including) the Exercise Date.

  
	
   

  	
   

  
	
   

  	
  B = the Exercise Price.

  

 

For purposes of Rule
144 promulgated under the Securities Act, it is intended, understood and
acknowledged that the Additional Investment Right Shares issued in a cashless
exercise transaction shall be deemed to have been acquired by the Holder, and
the holding period for the Additional Investment Right Shares shall be deemed
to have commenced, on the date this Additional Investment Right was originally
issued pursuant to the Purchase Agreement.

 

11.           Call Right.

 

(a) Subject to the
provisions of this Section 11, if following the date hereof and
through and including the Expiration Date, the Closing Prices for each of any
20 consecutive Trading Days exceeds 200% of the Exercise Price (the “Threshold Price”) and the arithmetic average of
the volume for such 20 consecutive Trading Days is equal to or greater than
250,000 Ordinary Shares, excluding blocks of Ordinary Shares equal to or
greater than 25,000 Ordinary Shares, then the Company will have the right,

 

6

 

but not the obligation (the “Call Right”), on 10 Trading Days prior written
notice to the Holder, to redeem any unexercised portion of this Additional
Investment Right for which an Exercise Notice has not yet been delivered (the “Call Amount”).

 

(b) To exercise this
Call Right, the Company shall deliver to the Holder  an irrevocable written notice (a “Call Notice”), indicating the Call
Amount.  The date that the Company
delivers the Call Notice to the Holders will be referred to as the “Call Date.” Within 10 Trading Days of
receipt of the Call Notice, the Holder shall exercise this Additional
Investment Right for up to the Call Amount in accordance with Section 4(b)
above.  Any portion of the Call Amount
that is not exercised by 6:30 p.m. (New York City time) on the 10th Trading Day
following the date of receipt of the Call Notice (the “Redemption Date”) shall be cancelled.    Any unexercised portion of this Additional
Investment Right to which the Call Notice does not pertain (the “Remaining Portion”) will be unaffected by such
Call Notice. The Company covenants and agrees that it will honor any Exercise
Notice with respect to the Call Amount that are tendered from the Call Date
through and including 6:30 p.m. (New York City time) on the Redemption Date.

 

(c) Notwithstanding
anything to the contrary set forth in this Additional Investment Right, the
Company may not require the cancellation of any unexercised Call Amount (and
any Call Notice will be void), unless from the beginning of the 20 consecutive
Trading Days used to determine whether the Ordinary Shares has achieved the
Threshold Price through the Redemption Date (the “Call Period”) (i) the Closing Prices for
each Trading Day during such Call Period exceeds the Threshold Price, (ii) the
Company shall have honored in accordance with the terms of this Additional
Investment Right any Exercise Notice delivered by 6:30 p.m. (New York City
time) on the Redemption Date, and (iii) the Registration Statement shall be
effective as to all Additional Investment Right Shares and the Prospectus
thereunder available for use by the Holder for the resale all such Additional
Investment Right Shares.

 

12.           Limitation
on Exercise.

 

(a)                                  Notwithstanding anything to the
contrary contained herein, the number of Ordinary Shares that may be acquired
by the Holder upon any exercise of this Additional Investment Right (or
otherwise in respect hereof) shall be limited to the extent necessary to insure
that, following such exercise (or other issuance), the total number of Ordinary
Shares then beneficially owned by such Holder and its Affiliates and any other
Persons whose beneficial ownership of Ordinary Shares would be aggregated with
the Holder’s for purposes of Section 13(d) of the Exchange Act, does not
exceed 4.999% (the “Maximum Percentage”)
of the total number of issued and outstanding Ordinary Shares (including for
such purpose the Ordinary Shares issuable upon such exercise). The Company’s
obligation to issue shares in excess of the foregoing limitation shall be
suspended until such time, if any, as such Ordinary Shares may be issued in
compliance with such limitation.  For
such purposes, beneficial ownership shall be determined in accordance with
Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. Each delivery of an Exercise Notice hereunder will
constitute a representation by the Holder that it has evaluated the limitation
set forth in this paragraph and determined that issuance of the full number of
Additional Investment Right Shares requested in such Exercise Notice is
permitted under this paragraph.  The Company’s
obligation to issue Ordinary Shares in excess of the limitation referred to in
this Section shall be suspended (and shall not terminate or expire
notwithstanding any contrary provisions hereof) until such time, if any, as
such Ordinary Shares may be issued in compliance with such limitation, but in
no event later than the Expiration Date. By written notice to the Company, the
Holder may waive the provisions of this Section 12 or increase or decrease
the Maximum Percentage to any other percentage specified in such notice, but
(i) any such waiver or increase will not be effective

 

7

 

until the 61st day after such notice is delivered to the Company, and
(ii) any such waiver or increase or decrease will apply only to the Holder and
not to any other holder of Additional Investment Rights.

 

(b)                                 Notwithstanding
anything to the contrary contained herein, the maximum number of Ordinary
Shares that the Company may issue pursuant to the Transaction Documents at an effective
purchase price less than the Closing Price on the Trading Day immediately
preceding the Closing Date equals 19.99% of the outstanding shares of Ordinary
Shares immediately preceding the Closing Date (the “Issuable Maximum”).  If, at the time any Holder requests an
exercise of any of the Additional Investment Rights, the Actual Minimum
(excluding any shares issued or issuable at an effective purchase price in
excess of the Closing Price on the Trading Day immediately preceding the
Closing Date) exceeds the Issuable Maximum (and if the Company has not
previously obtained the required stockholder approval), then the Company shall
issue to the Holder requesting such exercise a number of Ordinary Shares not
exceeding such Holder’s pro-rata portion of the Issuable Maximum (based on such
Holder’s share (vis-à-vis other Holders) of the aggregate purchase price paid
under the Purchase Agreement and taking into account any Additional Investment
Right Shares previously issued to such Holder).  For the purposes hereof, “Actual
Minimum” shall mean, as of any date, the maximum aggregate number of
Ordinary Shares then issued or potentially issuable in the future pursuant to
the Transaction Documents, including any Underlying Shares issuable upon
exercise in full of all Additional Investment Rights, without giving effect to
any limits on the number of Ordinary Shares that may be owned by a Holder at
any one time.

 

13.           Fractional Shares.  The Company shall not be required to issue
or cause to be issued fractional Additional Investment Right Shares on the
exercise of this Additional Investment Right. 
If any fraction of a Additional Investment Right Share would, except for
the provisions of this Section, be issuable upon exercise of this Additional
Investment Right, the number of Additional Investment Right Shares to be issued
will be rounded up to the nearest whole share.

 

14.           Notices.  Any and all notices or other communications
or deliveries hereunder (including without limitation any Exercise Notice)
shall be in writing and shall be deemed given and effective on the earliest of
(i) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section prior to 6:30
p.m. (New York City time) on a Trading Day, (ii) the next Trading Day after the
date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section on a day that
is not a Trading Day or later than 6:30 p.m. (New York City time) on any
Trading Day, (iii) the Trading Day following the date of mailing, if sent by
nationally recognized overnight courier service, or (iv) upon actual receipt by
the party to whom such notice is required to be given.  The address for such notices or communications
shall be as set forth in the Purchase Agreement.

 

15.           Additional Investment Right Agent.  The Company shall serve as Additional
Investment Right agent under this Additional Investment Right.  Upon 30 days’ notice to the Holder, the
Company may appoint a new Additional Investment Right agent.  Any corporation into which the Company or
any new Additional Investment Right agent may be merged or any corporation
resulting from any consolidation to which the Company or any new Additional
Investment Right agent shall be a party or any corporation to which the Company
or any new Additional Investment Right agent transfers substantially all of its
corporate trust or stockholders services business shall be a successor
Additional Investment Right agent under this Additional Investment Right
without any further act.  Any such
successor Additional Investment Right agent shall promptly cause notice of its
succession as Additional Investment Right agent to be mailed (by first class
mail, postage prepaid) to the Holder at the Holder’s last address as shown on
the Additional Investment Right Register.

 

8

 

16.           Miscellaneous.

 

(a)                                  Subject to the restrictions on
transfer set forth on the first page hereof, this Additional Investment Right
may be assigned by the Holder.  This
Additional Investment Right may not be assigned by the Company except to a
successor in the event of a Fundamental Transaction.  This Additional Investment Right shall be binding on and inure to
the benefit of the parties hereto and their respective successors and
assigns.  Subject to the preceding
sentence, nothing in this Additional Investment Right shall be construed to
give to any Person other than the Company and the Holder any legal or equitable
right, remedy or cause of action under this Additional Investment Right.  This Additional Investment Right may be
amended only in writing signed by the Company and the Holder and their
successors and assigns.

 

(b)                                 The Company will not, by
amendment of its governing documents or through any reorganization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or any
other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms of this Additional Investment Right, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of
all such action as may be necessary or appropriate in order to protect the
rights of the Holder against impairment. 
Without limiting the generality of the foregoing, the Company (i) will
not increase the par value of any Additional Investment Right Shares above the
amount payable therefor on such exercise, (ii) will take all such action as may
be reasonably necessary or appropriate in order that the Company may validly
and legally issue fully paid and nonassessable Additional Investment Right
Shares on the exercise of this Additional Investment Right, and (iii) will not
close its stockholder books or records in any manner which interferes with the
timely exercise of this Additional Investment Right.

 

(c)                                  GOVERNING LAW; VENUE; WAIVER OF
JURY TRIAL.  ALL QUESTIONS CONCERNING THE CONSTRUCTION,
VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS ADDITIONAL INVESTMENT RIGHT
SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK.  EACH PARTY
HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND
FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE
ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY
TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO
THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY
WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM
THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT
SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. 
EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND
CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY
MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY
(WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES
TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD
AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN
SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER
PERMITTED BY LAW.  THE COMPANY HEREBY
WAIVES ALL RIGHTS TO A TRIAL BY JURY.

 

(d)                                 The headings herein are for
convenience only, do not constitute a part of this Additional Investment Right
and shall not be deemed to limit or affect any of the provisions hereof.

 

(e)                                  In case any one or more of the
provisions of this Additional Investment Right shall be invalid or
unenforceable in any respect, the validity and enforceability of the remaining
terms and provisions of this Additional Investment Right shall not in any way
be affected or impaired thereby and the parties will attempt in good faith to
agree upon a valid and enforceable provision which shall be a commercially
reasonable substitute therefor, and upon so agreeing, shall incorporate such
substitute provision in this Additional Investment Right.

 

9

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,

SIGNATURE PAGE FOLLOWS]

 

10

 

IN WITNESS WHEREOF, the Company
has caused this Additional Investment Right to be duly executed by its authorized
officer as of the date first indicated above.

 

 

	
   

  	
  RADVIEW SOFTWARE LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

11

 

FORM OF EXERCISE NOTICE

 

(To be executed by the Holder to exercise the
right to purchase Ordinary Shares under the foregoing Additional Investment
Right)

 

To: 
RADVIEW SOFTWARE LTD.

 

The undersigned is the Holder of Additional
Investment Right No.
              
(the “Additional Investment Right”)
issued by RadView Software Ltd., an Israeli corporation (the “Company”). 
Capitalized terms used herein and not otherwise defined have the
respective meanings set forth in the Additional Investment Right.

 

	
  1.

  	
   

  	
  The Additional Investment Right is currently exercisable to purchase
  a total of
                              
  Additional Investment Right Shares.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  The undersigned Holder hereby exercises its right to purchase
                                    
  Additional Investment Right Shares pursuant to the Additional Investment
  Right.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  The Holder intends that payment of the Exercise Price shall be made
  as (check one):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                  “Cash Exercise” under Section 10

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                  “Cashless Exercise” under
  Section 10

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  If the holder has elected a Cash Exercise, the holder shall pay the
  sum of
  $                         to
  the Company in accordance with the terms of the Additional Investment Right.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Pursuant to this exercise, the Company shall deliver to the holder
                                
  Additional Investment Right Shares in accordance with the terms of the
  Additional Investment Right.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Following this exercise, the Additional Investment Right shall be
  exercisable to purchase a total of
                              
  Additional Investment Right Shares.

  

 

 

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
  Name of Holder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Print)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature must conform in all respects to
  name of holder as specified on the face of the Additional Investment Right)

  
												

 

 

FORM OF ASSIGNMENT

 

[To be completed and signed only upon transfer
of Additional Investment Right]

 

FOR VALUE RECEIVED, the undersigned hereby
sells, assigns and transfers unto
                                                                
the right represented by the within Additional Investment Right to purchase                          
Ordinary Shares of RadView Software Ltd. to which the within Additional
Investment Right relates and appoints
                                
attorney to transfer said right on the books of RadView Software Ltd. with full
power of substitution in the premises.

 

 

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Signature must conform in all respects to
  name of holder as specified on the face of the Additional Investment Right)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address of Transferee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  In the presence of:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
									

 

12

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