Document:

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                                                                     Exhibit 4.3

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AS
AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
RELATED THERETO OR AN OPINION OF COUNSEL (WHICH MAY BE COMPANY COUNSEL)
REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED
UNDER THE SECURITIES ACT OF 1933 ACT AS AMENDED, OR ANY APPLICABLE STATE
SECURITIES LAWS.

                                WARRANT AGREEMENT

                    To Purchase Shares of the Common Stock of

                         Omrix Biopharmaceuticals, Inc.

                Dated as of March 31, 2005 (the "Effective Date")

     WHEREAS, Omrix Biopharmaceuticals, Inc., a Delaware corporation (the
"Company"), has entered into a Senior Loan and Security Agreement of even date
herewith (the "Loan Agreement") with Hercules Technology Growth Capital, Inc., a
Maryland corporation (the "Warrantholder");

     WHEREAS, the Company desires to grant to Warrantholder, in consideration
for, among other things, the financial accommodations provided for in the Loan
Agreement, the right to purchase shares of its Common Stock pursuant to this
Warrant Agreement (the "Agreement");

     NOW, THEREFORE, in consideration of the Warrantholder executing and
delivering the Loan Agreement and providing the financial accommodations
contemplated therein, and in consideration of the mutual covenants and
agreements contained herein, the Company and Warrantholder agree as follows:

SECTION 1. GRANT OF THE RIGHT TO PURCHASE COMMON STOCK.

     For value received, the Company hereby grants to the Warrantholder, and the
Warrantholder is entitled, upon the terms and subject to the conditions
hereinafter set forth, to subscribe for and purchase, from the Company, 149,522
fully paid and non-assessable shares of the Common Stock (as defined below) at a
purchase price of $4.18 per share (the "Exercise Price"). The number and
Exercise Price of such shares are subject to adjustment as provided in Section
8. As used herein, the following terms shall have the following meanings:

          "Act" means the Securities Exchange Act of 1933, as amended;

          "Charter" means the Company's Certificate of Incorporation or other
constitutional document, as may be amended from time to time;

          "Common Stock" means the Company's common stock; $0.01 par value per
share;

          "Initial Public Offering" means the initial underwritten public
offering of the Company's Common Stock pursuant to a registration statement
under the Act, which public offering has been declared effective by the
Securities and Exchange Commission ("SEC");

          "Merger Event" means a merger or consolidation involving the Company
in which the Company is not the surviving entity, or in which the outstanding
shares of the Company's capital stock are otherwise converted into or exchanged
for shares of capital of another entity; and

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          "Purchase Price" means, with respect to any exercise of this
Agreement, an amount equal to the Exercise Price as of the relevant time
multiplied by the number of shares of Common Stock requested to be exercised
under this Agreement pursuant to such exercise.

SECTION 2. TERM OF THE AGREEMENT.

     Except as otherwise provided for herein, the term of this Agreement and the
right to purchase Common Stock as granted herein (the "Warrant) shall commence
on the Effective Date and shall be exercisable for a period ending upon the
earliest to occur of (i) seven (7) years from the Effective Date; or (ii) three
(3) years after the Initial Public Offering.

SECTION 3. EXERCISE OF THE PURCHASE RIGHTS.

     (a) Exercise. The purchase rights set forth in this Agreement are
exercisable by the Warrantholder, in whole or in part, at any time, or from time
to time, prior to the expiration of the term set forth in Section 2, by
tendering to the Company at its principal office (i) a notice of exercise in the
form attached hereto as Exhibit I (the "Notice of Exercise"), duly completed and
executed, and (ii) a duly completed and executed Stockholder Instrument of
Accession in the form attached hereto as Exhibit IV (the "Instrument of
Accession"). Promptly upon receipt of the Notice of Exercise, the Instrument of
Accession and the payment of the Purchase Price in accordance with the terms set
forth below, and in no event later than three (3) business days thereafter, the
Company shall issue to the Warrantholder a certificate for the number of shares
of Common Stock purchased and shall execute the acknowledgment of exercise in
the form attached hereto as Exhibit II (the "Acknowledgment of Exercise")
indicating the number of shares which remain subject to future purchases, if
any.

     The Purchase Price may be paid at the Warrantholder's election either (i)
by cash or check, or (ii) by surrender of all or a portion of the Warrant for
shares of Common Stock to be exercised under this Agreement and, if applicable,
an amended Agreement representing the remaining number of shares purchasable
hereunder, as determined below ("Net Issuance"). If the Warrantholder elects the
Net Issuance method, the Company will issue Common Stock in accordance with the
following formula:

               X = Y(A-B)
                   ------
                      A

Where: X = the number of shares of Common Stock to be issued to the
           Warrantholder.

       Y = the number of shares of Common Stock requested to be exercised under
           this Agreement.

       A = the fair market value of one (1) share of Common Stock at the time of
           issuance of such shares of Common Stock.

       B = the Exercise Price.

          For purposes of the above calculation, current fair market value of
Common Stock shall mean with respect to each share of Common Stock:

          (i) if the exercise is in connection with an Initial Public Offering,
and if the Company's Registration Statement relating to such Initial Public
Offering has been declared effective by the SEC, then the fair market value per
share shall be the initial "Price to Public" of the Common Stock specified in
the final prospectus with respect to the offering;

          (ii) if the exercise is after, and not in connection with an Initial
Public Offering, and:

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               (A) if the Common Stock is traded on a securities exchange, the
fair market value shall be deemed to be the average of the closing prices over a
ten (10) day period ending three days before the day the current fair market
value of the securities is being determined; or

               (B) if the Common Stock is actively traded over-the-counter, the
fair market value shall be deemed to be the average of the closing bid and asked
prices quoted on the NASDAQ system (or similar system) over the fifteen (15) day
period ending three days before the day the current fair market value of the
securities is being determined;

          (iii) if at any time the Common Stock is not listed on any securities
exchange or quoted in the NASDAQ National Market or the over-the-counter market,
the current fair market value of Common Stock shall be the highest price per
share which the Company could obtain from a willing buyer (not a current
employee or director) for shares of Common Stock sold by the Company, from
authorized but unissued shares, as determined in good faith by its Board of
Directors, unless, prior to the exercise of the purchase rights under this
Agreement, the Company shall become subject to a Merger Event pursuant to which
the Company is not the surviving party, in which case the fair market value of
Common Stock shall be deemed to be the per share value received by the holders
of the Company's Common Stock on a common equivalent basis pursuant to such
Merger Event.

     Upon partial exercise by either cash or Net Issuance, the Company shall
promptly issue an amended Agreement representing the remaining number of shares
purchasable hereunder. All other terms and conditions of such amended Agreement
shall be identical to those contained herein, including, but not limited to the
Effective Date hereof.

     (b) Exercise Prior to Expiration. To the extent this Agreement is not
previously exercised as to all Common Stock subject hereto, and if the fair
market value of one share of the Common Stock is greater than the Exercise Price
then in effect, this Agreement shall be deemed automatically exercised pursuant
to Section 3 (a) (even if not surrendered) immediately before its expiration,
provided that the Warrantholder delivered to the Company the Instrument of
Accession duly completed and executed (unless not applicable at such time). For
purposes of such automatic exercise, the fair market value of one share of the
Common Stock upon such expiration shall be determined pursuant to Section 3(a).
To the extent this Agreement or any portion thereof is deemed automatically
exercised pursuant to this Section 3(b), the Company agrees to promptly notify
the Warrantholder of the number of shares of Common Stock, if any, the
Warrantholder is to receive by reason of such automatic exercise.

SECTION 4. RESERVATION OF SHARES.

     During the term of this Agreement, the Company will at all times have
authorized and reserved a sufficient number of shares of its Common Stock to
provide for the exercise of the rights to purchase Common Stock as provided for
herein.

SECTION 5. NO FRACTIONAL SHARES OR SCRIP.

     No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of this Agreement, but in lieu of such fractional
shares the Company shall make a cash payment therefor upon the basis of the
Exercise Price then in effect.

SECTION 6. NO RIGHTS AS SHAREHOLDER/STOCKHOLDER.

     This Agreement does not entitle the Warrantholder to any voting rights or
other rights as a shareholder/stockholder of the Company prior to the exercise
of the purchase rights under this

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Agreement. The Warrantholder acknowledges that the Common Stock issued upon the
exercise of this Agreement shall be subject to any and all limitations and
restrictions set forth in the Company's Charter, then current bylaws, and the
Investor Rights Agreement and Stockholder Agreement entered into by and among
the stockholders of the Company's Common Stock on January 13, 2005, as shall be
amended from time to time.

SECTION 7. WARRANTHOLDER REGISTRY.

     The Company shall maintain a registry showing the name and address of the
registered holder of this Agreement. Warrantholder's initial address, for
purposes of such registry, is set forth below Warrantholder's signature on this
Agreement. Warrantholder may change such address by giving written notice of
such changed address to the Company.

SECTION 8. ADJUSTMENT RIGHTS.

     The Exercise Price and the number of shares of Common Stock purchasable
hereunder are subject to adjustment, as follows:

     (a) Merger Event. If at any time there shall be Merger Event, then, as a
part of such Merger Event, lawful provision shall be made so that the
Warrantholder shall thereafter be entitled to receive, upon exercise of this
Agreement, the number of shares of Common Stock or other securities or property
of the successor corporation resulting from such Merger Event that would have
been issuable if Warrantholder had exercised this Agreement immediately prior to
the Merger Event. In any such case, appropriate adjustment (as determined in
good faith by the Company's Board of Directors) shall be made in the application
of the provisions of this Agreement with respect to the rights and interests of
the Warrantholder after the Merger Event to the end that the provisions of this
Agreement (including adjustments of the Exercise Price and number of shares of
Common Stock purchasable) shall be applicable in their entirety, and to the
greatest extent possible. Without limiting the foregoing, in connection with any
Merger Event, upon the closing thereof, the successor or surviving entity shall
assume the obligations of this Agreement.

     (b) Reclassification of Shares. Except as set forth in Section 8(a), if the
Company at any time shall, by combination, reclassification, exchange or
subdivision of securities or otherwise, change any of the securities as to which
purchase rights under this Agreement exist into the same or a different number
of securities of any other class or classes, this Agreement shall thereafter
represent the right to acquire such number and kind of securities as would have
been issuable as the result of such change with respect to the securities which
were subject to the purchase rights under this Agreement immediately prior to
such combination, reclassification, exchange, subdivision or other change.

     (c) Subdivision or Combination of Shares. If the Company at any time shall
combine or subdivide its Common Stock, (i) in the case of a subdivision, the
Exercise Price shall be proportionately decreased, and the number of shares of
Common Stock issuable upon exercise of this Agreement shall be proportionately
increased, or (ii) in the case of a combination, the Exercise Price shall be
proportionately increased, and the number of shares of Common Stock issuable
upon the exercise of this Agreement shall be proportionately decreased.

     (d) Stock Dividends. If the Company at any time while this Warrant is
outstanding and unexpired shall:

pay a stock dividend with respect to the Common Stock payable in Common Stock,
then the Exercise Price shall be adjusted, from and after the date of
determination of shareholders entitled to receive such

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dividend or distribution, to that price determined by multiplying the Exercise
Price in effect immediately prior to such date of determination by a fraction
(A) the numerator of which shall be the total number of shares of Common Stock
outstanding immediately prior to such dividend or distribution, and (B) the
denominator of which shall be the total number of shares of Common Stock
outstanding immediately after such dividend or distribution; or

     (e) Antidilution Rights. If the Company issues additional common shares
(including shares of common stock ultimately issuable upon conversion of a
security convertible into common stock) after the date of the Agreement and the
consideration per additional common share is less than the Exercise Price in
effect immediately before such issue shall be reduced, concurrently with such
Issue, to a price determined by multiplying the Exercise Price by a fraction:

          (i) the numerator of which is the amount of common stock outstanding
immediately before such Issue plus the amount of common stock that the aggregate
consideration received by the Company for the additional common shares would
purchase at the Exercise Price in effect immediately before such Issue, and

          (ii) the denominator of which is the amount of common stock
outstanding immediately before such issue plus the number of such additional
common shares.

Upon each adjustment of the Exercise Price, the number of Shares issuable upon
exercise of the Agreement shall be increased to equal the quotient obtained by
dividing (a) the product resulting from multiplying (i) the number of Shares
issuable upon exercise of the Agreement and (ii) the Exercise Price, in each
case as in effect immediately before such adjustment, by (b) the adjusted
Exercise Price. The Company shall provide Warrantholder with prior written
notice of any issuance of its stock or other equity security to occur after the
Effective Date of this Agreement, which notice shall include (a) the price at
which such stock or security is to be sold, (b) the number of shares to be
issued, and (c) such other information as necessary for Warrantholder to
determine if a dilutive event has occurred. Notwithstanding the foregoing, no
adjustment to the Exercise Price or the number of shares of Common Stock
obtainable upon exercise of this Warrant shall be made pursuant to this
subsection 8(e) for equities issued (i) in a round that generates gross proceeds
of not more than $5,000,000, which round closes by June 30, 2005, (ii) under
stock options issued to employees under plan(s) approved by the Company's Board
of Directors, and (iii) if such issuance is exempted from the participation
rights pursuant to Section 3.1 (h) of the Investor Rights Agreement entered into
by and among the Company and the holders of the Company's Common Stock on
January 13, 2005, as shall be amended from time to time, in accordance with its
terms; provided, however, that subsection 3.1(h) (i) shall read as follows:
"securities issuable upon conversion or exchange of any convertible securities
or exercise of any options or warrants outstanding on the date of the Effective
Date [(March 31, 2005)]".

Notwithstanding the foregoing, if the Company inadvertently issues or sells, or
is deemed to have issued or sold, any share of Common Stock for a consideration
per share less than the Exercise Price in effect immediately before such issue,
such Exercise Price not be reduced if the Company is able to rescind or
appropriately modify the transaction within a reasonable time after it became
aware of the reduction in the Exercise Price that would otherwise occur.

     (f) Notice of Adjustments. Immediately upon the adjustment of the Exercise
Price or the number of Common Stock exercisable, the Company shall give written
notice thereof to the Warrantholder, setting forth in reasonable detail the
calculation of such adjustment. The Company shall also give written notice to
the Warrantholder 20 days prior to a planned Merger Event, Initial Public
Offering or a sale of all or substantially all of its assets.

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SECTION 9. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY.

     (a) Reservation of Common Stock. The Common Stock issuable upon exercise of
the Warrantholder's rights has been duly and validly reserved and, when issued
in accordance with the provisions of this Agreement, will be validly issued,
fully paid and non-assessable, and will be free of any taxes, liens, charges or
encumbrances of any nature whatsoever; provided, that the Common Stock issuable
pursuant to this Agreement may be subject to restrictions on transfer under
state and/or federal securities laws, and subject to any and all limitations and
restrictions set out in the Company's Charter, then current bylaws, and the
Investor Rights Agreement and Stockholder Agreement entered into by and among
the stockholders of the Company's Common Stock on January 13, 2005, as shall be
in effect from time to time. The Company has made available to the Warrantholder
true, correct and complete copies of its Charter and current bylaws. The
issuance of certificates for shares of Common Stock upon exercise of this
Agreement shall be made without charge to the Warrantholder for any issuance tax
in respect thereof, or other cost incurred by the Company in connection with
such exercise and the related issuance of shares of Common Stock; provided, that
the Company shall not be required to pay any tax which may be payable in respect
of any transfer and the issuance and delivery of any certificate in a name other
than that of the Warrantholder.

     (b) Due Authority. The execution and delivery by the Company of this
Agreement and the performance of all obligations of the Company hereunder,
including the issuance to Warrantholder of the right to acquire the shares of
Common Stock, have been duly authorized by all necessary corporate action on the
part of the Company. This Agreement: (1) are not inconsistent with the Company's
Charter or current bylaws; (2) do not contravene any law or governmental rule,
regulation or order applicable to it; and (3) do not and will not contravene any
provision of, or constitute a default under, any indenture, mortgage, contract
or other instrument to which it is a party or by which it is bound. This
Agreement constitute legal, valid and binding agreements of the Company,
enforceable in accordance with their respective terms.

     (c) Consents and Approvals. No consent or approval of, giving of notice to,
registration with, or taking of any other action in respect of any state,
federal or other governmental authority or agency is required with respect to
the execution, delivery and performance by the Company of its obligations under
this Agreement, except for the filing of notices pursuant to Regulation D under
the Act and any filing required by applicable state securities law, which
filings will be effective by the time required thereby.

     (d) Capitalization. The table attached to this Agreement is a true and
correct statement as of the date hereof of the issued and outstanding shares of
capital stock of the Company, including warrants and options to purchase stock.

     (e) Exempt Transaction. Subject to the accuracy of the Warrantholder's
representations in Section 10, the issuance of the Common Stock upon exercise of
this Agreement will constitute a. transaction exempt from (i) the registration
requirements of Section 5 of the Act, in reliance upon Section 4(2) thereof, and
(ii) the qualification requirements of the applicable state securities laws.

     (f) Compliance with Rule 144. Following the Initial Public Offering of the
Company, if the Warrantholder proposes to sell Common Stock issuable upon the
exercise of this Agreement in compliance with Rule 144 promulgated by the SEC,
then, upon Warrantholder's written request to the Company, the Company shall
furnish to the Warrantholder, within ten days after receipt of such request, a

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written statement confirming the Company's compliance with the filing
requirements of the SEC as set forth in such Rule as applicable to the Company,
as such Rule may be amended from time to time.

SECTION 10. REPRESENTATIONS AND COVENANTS OF THE WARRANTHOLDER.

     This Agreement has been entered into by the Company in reliance upon the
following representations and covenants of the Warrantholder:

     (a) Investment Purpose. The right to acquire Common Stock and the Common
Stock issuable upon exercise of the Warrantholder's rights contained herein will
be acquired for investment and not with a view to the sale or distribution of
any part thereof, and the Warrantholder has no present intention of selling or
engaging in any public distribution of the same except pursuant to a
registration or exemption.

     (b) Private Issue. The Warrantholder understands that (i) the Common Stock
issuable upon exercise of this Agreement is not registered under the Act or
qualified under applicable state securities laws on the ground that the issuance
contemplated by this Agreement will be exempt from the registration and
qualifications requirements thereof, and (ii) the Company's reliance on such
exemption is predicated on the representations set forth in this Section 10.

     (c) Disposition of Warrantholder's Rights. In no event will the
Warrantholder make a disposition of any of its rights to acquire Common Stock or
Common Stock issuable upon exercise of such rights unless and until (i) it shall
have notified the Company of the proposed disposition, and (ii) if requested by
the Company, it shall have furnished the Company with an opinion of counsel
(which counsel may either be inside or outside counsel to the Warrantholder)
satisfactory to the Company and its counsel to the effect that (A) appropriate
action necessary for compliance with the Act has been taken, or (B) an exemption
from the registration requirements of the Act is available. Notwithstanding the
foregoing, the restrictions imposed upon the transferability of any of its
rights to acquire Common Stock or Common Stock issuable on the exercise of such
rights do not apply to transfers from the beneficial owner of any of the
aforementioned securities to its nominee or from such nominee to its beneficial
owner, and shall terminate as to any particular share of Common Stock when (1)
such security shall have been effectively registered under the Act and sold by
the holder thereof in accordance with such registration or (2) such security
shall have been sold without registration in compliance with Rule 144 under the
Act, or (3) a letter shall have been issued to the Warrantholder at its request
by the staff of the SEC or a ruling shall have been issued to the Warrantholder
at its request by the SEC stating that no action shall be recommended by such
staff or taken by the SEC, as the case may be, if such security is transferred
without registration under the Act in accordance with the conditions set forth
in such letter or ruling and such letter or ruling specifies that no subsequent
restrictions on transfer are required. Whenever the restrictions imposed
hereunder shall terminate, as hereinabove provided, the Warrantholder or holder
of a share of Common Stock then outstanding as to which such restrictions have
terminated shall be entitled to receive from the Company, without expense to
such holder, one or more new certificates for this Agreement or for such shares
of Common Stock not bearing any restrictive legend.

     (d) Financial Risk. The Warrantholder has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of its investment, and has the ability to bear the economic risks of its
investment.

     (e) Risk of No Registration. The Warrantholder understands that if the
Company does not register with the SEC pursuant to Section 12 of the Securities
Exchange Act of 1934 (the "1934 Act"), or file reports pursuant to Section 15(d)
of the 1934 Act, or if a registration statement covering the securities under
the Act is not in effect when it desires to sell (i) the rights to purchase
Common Stock pursuant to

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this Agreement or (ii) the Common Stock issuable upon exercise of the right to
purchase, it may be required to hold such securities for an indefinite period.
The Warrantholder also understands that any sale of (A) its rights hereunder to
purchase Common Stock or (B) Common Stock issued or issuable hereunder which
might be made by it in reliance upon Rule 144 under the Act may be made only in
accordance with the terms and conditions of that Rule.

     (f) Accredited Investor. Warrantholder is an "accredited investor" within
the meaning of the Securities and Exchange Rule 501 of Regulation D, as
presently in effect.

SECTION 11. TRANSFERS.

     Subject to the terms and conditions contained in Section 10, this Agreement
and all rights hereunder are transferable in whole or in part by the
Warrantholder and any successor transferee, provided, that, prior to an Initial
Public Offering, (i) in no event shall the number of transfers of the rights and
interests in this Agreement exceed three (3) transfers, and provider further,
that each such transferee agreed in writing to be bound by the terms and
conditions of this Agreement and (ii) Warrantholder shall not transfer this
Agreement or the rights hereunder to a competitor of the Company. The transfer
shall be recorded on the books of the Company upon receipt by the Company of a
notice of transfer in the form attached hereto as Exhibit III (the "Transfer
Notice"), at its principal offices and the payment to the Company of all
transfer taxes and other governmental charges imposed on such transfer.

SECTION 12. MISCELLANEOUS.

     (a) Effective Date. The provisions of this Agreement shall be construed and
shall be given effect in all respects as if it had been executed and delivered
by the Company on the date hereof. This Agreement shall be binding upon any
successors or assigns of the Company.

     (b) Remedies. In the event of any default hereunder, the non-defaulting
party may proceed to protect and enforce its rights either by suit in equity
and/or by action at law, including but not limited to an action for damages as a
result of any such default, and/or an action for specific performance for any
default where Warrantholder will not have an adequate remedy at law and where
damages will not be readily ascertainable. The Company expressly agrees that it
shall not oppose an application by the Warrantholder or any other person
entitled to the benefit of this Agreement requiring specific performance of any
or all provisions hereof or enjoining the Company from continuing to commit any
such breach of this Agreement.

     (c) No Impairment of Rights. The Company will not, by amendment of its
Charter or through any other means, avoid or seek to avoid the observance or
performance of any of the terms of this Agreement, but will at all times in good
faith assist in the carrying out of all such terms and in the taking of all such
actions as may be necessary or appropriate in order to protect the rights of the
Warrantholder against impairment.

     (d) Attorney's Fees. In any litigation, arbitration or court proceeding
between the Company and the Warrantholder relating hereto, the prevailing party
shall be entitled to reasonable attorneys' fees and expenses and all reasonable
costs of proceedings incurred in enforcing this Agreement. For the purposes of
this Section 12(e), attorneys' fees shall include without limitation fees
incurred in connection with the following: (i) contempt proceedings; (ii)
discovery; (iii) any motion, proceeding or other activity of any kind in
connection with an insolvency proceeding; (iv) garnishment, levy, and debtor and
third party examinations; and (v) post-judgment motions and proceedings of any
kind, including without limitation any activity taken to collect or enforce any
judgment.

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     (e) Severability. In the event any one or more of the provisions of this
Agreement shall for any reason be held invalid, illegal or unenforceable, the
remaining provisions of this Agreement shall be unimpaired, and the invalid,
illegal or unenforceable provision shall be replaced by a mutually acceptable
valid, legal and enforceable provision, which comes closest to the intention of
the parties underlying the invalid, illegal or unenforceable provision.

     (f) Notices. Except as otherwise provided herein, any notice, demand,
request, consent, approval, declaration, service of process or other
communication that is required, contemplated, or permitted under this Agreement
or with respect to the subject matter hereof shall be in writing, and shall be
deemed to have been validly served, given, delivered, and received upon the
earlier of: (i) the first business day after transmission by facsimile or hand
delivery or deposit with an overnight express service or overnight mail delivery
service; or (ii) the third calendar day after deposit in the United States
mails, with proper first class postage prepaid, and shall be addressed to the
party to be notified as follows:

          If to Warrantholder:

                    HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
                                Legal Department
                         Attention: Chief Legal Officer
                              525 University Avenue
                                    Suite 700
                               Palo Alto, CA 9430
                             Facsimile: 650-289-3060
                             Telephone: 650-473-9194

          With a copy to:

                    HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
                              Attention: Parag Shah
                               100 Federal Street
                                   28th Floor
                                Boston, MA 02110
                             Facsimile: 617-330-9131
                             Telephone: 617-330-9100

          (i) If to the Company:

                         OMRIX BIOPHARMACEUTICALS, INC.
                     MDA Blood Center, Tel Hashomer Hospital
                                Tel Aviv, ISRAEL
                            Attention: Mike Burshtine
                           Facsimile: +972 3 535 02 65
                           Telephone: +972 3 531 65 31

     or to such other address as each party may designate for itself by like
notice.

     (g) Entire Agreement; Amendments. This Agreement constitute the entire
agreement and understanding of the parties hereto in respect of the subject
matter hereof, and supersede and replace in their entirety any prior proposals,
term sheets, letters, negotiations or other documents or agreements, whether
written or oral, with respect to the subject matter hereof (including
Warrantholder's proposal letter dated February 16, 2005. None of the terms of
this Agreement may be amended except by an instrument executed by each of the
parties hereto.

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     (h) Headings. The various headings in this Agreement are inserted for
convenience only and shall not affect the meaning or interpretation of this
Agreement or any provisions hereof.

     (i) Advice of Counsel. Each of the parties represents to each other party
hereto that it has discussed (or had an opportunity to discuss) with its counsel
this Agreement and, specifically, the provisions of Sections 12(n), 12(o) and
12(p).

     (j) No Strict Construction. The parties hereto have participated jointly in
the negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties hereto and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement.

     (k) No Waiver. No omission or delay by either party at any time to enforce
any right or remedy reserved to it, or to require performance of any of the
terms, covenants or provisions hereof by the other party at any time designated,
shall be a waiver of any such right or remedy to which such party is entitled,
nor shall it in any way affect the right of such party to enforce such
provisions thereafter.

     (l) Survival. All agreements, representations and warranties contained in
this Agreement or in any document delivered pursuant hereto shall survive the
execution and delivery of this Agreement and the expiration or other termination
of this Agreement.

     (m) Governing Law. This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of Delaware, excluding
conflict of laws principles that would cause the application of laws of any
other jurisdiction.

     (n) Consent to Jurisdiction and Venue. All judicial proceedings arising in
or under or related to this Agreement may be brought in any state or federal
court of competent jurisdiction located in the State of California. By execution
and delivery of this Agreement, each party hereto generally and unconditionally:
(a) consents to personal jurisdiction in California; (b) waives any objection as
to jurisdiction or venue in California; (c) agrees not to assert any defense
based on lack of jurisdiction or venue in the aforesaid courts; and (d)
irrevocably agrees to be bound by any judgment rendered thereby in connection
with this Agreement. Service of process on any party hereto in any action
arising out of or relating to this Agreement shall be effective if given in
accordance with the requirements for notice set forth in Section 12(g), and
shall be deemed effective and received as set forth in Section 12(g). Nothing
herein shall affect the right to serve process in any other manner permitted by
law or shall limit the right of either party to bring proceedings in the courts
of any other jurisdiction.

     (o) Mutual Waiver of Jury Trial. Because disputes arising in connection
with complex financial transactions are most quickly and economically resolved
by an experienced and expert person and the parties wish applicable state and
federal laws to apply (rather than arbitration rules), the parties desire that
their disputes be resolved by a judge applying such applicable laws. EACH OF THE
COMPANY AND WARRANTHOLDER SPECIFICALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY
JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM
OR ANY OTHER CLAIM (COLLECTIVELY, "CLAIMS") ASSERTED BY THE COMPANY AGAINST
WARRANTHOLDER OR ITS ASSIGNEE OR BY WARRANTHOLDER OR ITS ASSIGNEE AGAINST THE
COMPANY. This waiver extends to all such Claims, including Claims that involve
Persons other than Company and Warrantholder; Claims that arise out of or are in
any way connected to the relationship between the Company and Warrantholder; and
any Claims for damages, breach of contract, specific performance, or any
equitable or legal relief of any kind, arising out of this Agreement. If this
jury waiver is for any reason ineffective or unenforceable, the Company and

                                       10

<PAGE>

Warrantholder will resolve all such disputes by binding arbitration in
accordance with the commercial arbitration rules of the American Arbitration
Association in Palo Alto, California.

     (p) Counterparts. This Agreement and any amendments, waivers, consents or
supplements hereto may be executed in any number of counterparts, and by
different parties hereto in separate counterparts, each of which when so
delivered shall be deemed an original, but all of which counterparts shall
constitute but one and the same instrument.

     (q) Specific Performance. The parties hereto acknowledge that it is
impossible to measure in money the damages that will accrue to Warrantholder by
reason of the Company's failure to perform any of the obligations under this
Agreement and agree that the terms of this Agreement shall be specifically
enforceable by Warrantholder. If Warrantholder institutes any action or
proceeding to specifically enforce the provisions hereof, any person against
whom such action or proceeding is brought waives the claim or defense that such
party has an adequate remedy at law, and such person shall not offer in any such
action or proceeding the claim or defense that such remedy at law exists.

                  [Remainder of Page Intentionally Left Blank]

                                       11

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by its officers thereunto duly authorized as of the Effective Date.

COMPANY:                                OMRIX BIOPHARMACEUTICALS, INC.

                                        By: /s/ Michael Burshtine
                                            ------------------------------------
                                        Title: CFO
                                               ---------------------------------

Notice Address:
c/o Omrix Biopharmaceuticals
MDA Blood Center, Tel Hashomer Hospital
52621 Tel Aviv ISRAEL
Phone: +972 3 531 65 31
Fax: +972 3 535 02 65

WARRANTHOLDER:                          HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

                                        By: /s/ Scott Harvey
                                            ------------------------------------
                                        Title: Chief Legal Officer
                                               ---------------------------------

Notice Address:
Hercules Technology Growth Capital, Inc..
Attn: Chief Legal Officer
525 University Avenue, Suite 700
Palo Alto, CA 94301
Phone: 650-289-3060
Fax: 650-473-9194

cc: Hercules Technology Growth Capital, Inc
Attn: Parag Shah
100 Federal Street, 28th Floor
Boston, MA 02110
Phone: 617-330-9100
Fax: 617-330-9131

                                       12

<PAGE>

                                    EXHIBIT I

                               NOTICE OF EXERCISE

To:  Omrix Biopharmaceuticals, Inc.

(1)  The undersigned Warrantholder hereby elects to purchase
     [____________________] shares of the Common Stock of Omrix
     Biopharmaceuticals, Inc., pursuant to the terms of the Agreement dated as
     of March 31, 2005 (the "Agreement") between Omrix Biopharmaceuticals, Inc.
     and the Warrantholder, and [CASH PAYMENT: tenders herewith payment of the
     Purchase Price in full, together with all applicable transfer taxes, if
     any.] [NET ISSUANCE: elects pursuant to Section 3(a) of the Agreement to
     effect a Net Issuance.]

(2)  In exercising its rights to purchase the Common Stock of Omrix
     Biopharmaceuticals, Inc., the undersigned hereby confirms and acknowledges
     the investment representations and warranties made in Section 10 of the
     Agreement.

(3)  Please issue a certificate or certificates representing said shares of
     Common Stock in the name of the undersigned or in such other name as is
     specified below.

                                        ----------------------------------------
                                        (Name)

                                        ----------------------------------------
                                        (Address)

WARRANTHOLDER:                          HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

                                        By:
                                            ------------------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

                                       13

<PAGE>

                                   EXHIBIT II

                           ACKNOWLEDGMENT OF EXERCISE

The undersigned Omrix Biopharmaceuticals, Inc., hereby acknowledge receipt of
the "Notice of Exercise" from Hercules Technology Growth Capital, Inc., to
purchase [_____] shares of the Common Stock of [________________], pursuant to
the terms of the Agreement, and further acknowledges that [_____] shares remain
subject to purchase under the terms of the Agreement.

COMPANY:                                OMRIX BIOPHARMACEUTICALS, INC.

                                        By:
                                            ------------------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

                                       14

<PAGE>

                                   EXHIBIT III

                                TRANSFER NOTICE

(To transfer or assign the foregoing Agreement execute this form and supply
required information. Do not use this form to purchase shares.)

FOR VALUE RECEIVED, the foregoing Agreement and all rights evidenced thereby are
hereby transferred and assigned to

________________________________________________________________________________
(Please Print)

whose address is _______________________________________________________________

________________________________________________________________________________

Dated:
       ---------------------------------

Holder's Signature:
                    --------------------
Holder's Address:
                  ----------------------

----------------------------------------

Signature Guaranteed:
                      ----------------------------------------------------------

NOTE: The signature to this Transfer Notice must correspond with the name as it
appears on the face of the Agreement, without alteration or enlargement or any
change whatever. Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign
the foregoing Agreement.

                                       15

<PAGE>

                                   EXHIBIT IV

                         OMRIX BIOPHARMACEUTICALS, INC.
                       STOCKHOLDER INSTRUMENT OF ACCESSION

     The undersigned, _____________________________, as a condition precedent to
becoming the owner or holder of record of ______________________ (____________)
shares of Common Stock, par value $0.01 per share, of Omrix Biopharmaceuticals,
Inc., a Delaware corporation (the "Company"), hereby agrees to become a
Stockholder under that certain Stockholders' Agreement dated as of
December ________, 2004 by and among the Company and the Common Stockholders
named therein, as the same as may be amended from time to time, including by
accession of additional parties. This Instrument of Accession shall take effect
and shall become an integral part of, and the undersigned shall become a party
to and bound by, said Stockholders' Agreement immediately upon execution and
delivery to the Company of this Instrument.

     IN WITNESS WHEREOF, this INSTRUMENT OF ACCESSION has been duly executed by
or on behalf of the undersigned as of the date below written.

                                        [NAME]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        Record Address:
                                                        ------------------------

                                        ----------------------------------------
                                        Telephone No.:
                                                       -------------------------
                                        Facsimile No.:
                                                       -------------------------
                                        E-mail Address:
                                                        ------------------------

                                        ACCEPTED:

                                        OMRIX BIOPHARMACEUTICALS, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

                                       16<PAGE>
                                                                     Exhibit 4.4

            THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR
           INVESTMENT. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON
      EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED OR ANY APPLICABLE STATE SECURITIES ACTS. THESE
        SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
                   REGISTRATION OR AN EXEMPTION THEREFROM THIS
                  WARRANT IS ALSO SUBJECT TO CERTAIN LIMITS ON
                     TRANSFER SET FORTH IN SECTION 6 HEREOF.

                         OMRIX BIOPHARMACEUTICALS, INC.

                          COMMON STOCK PURCHASE WARRANT

Date of Issuance: December 31, 1998                 Certificate No. W-CAP- # 1

          FOR VALUE RECEIVED, Omrix Biopharmaceuticals, Inc., a Delaware
corporation (the "Company"), hereby grants Capricorn Venture Partners n.v. or
its registered assigns (the "Registered Holder") the right to purchase from the
Company during the Exercise Period (as defined below) up to 40,000 shares of the
Company's Common Stock at a price per share of $5.55 (as adjusted from time to
time hereunder, the "Exercise Price"). This Warrant is issued by the Company
pursuant to that certain letter agreement dated as of December 31, 1998 by and
among the Company, Omrix Biopharmaceuticals S.A., and Capricorn Venture Partners
n.v. in connection with an offering of securities (the "Private Placement")
pursuant to a Securities Purchase Agreement dated as of December 31, 1998 (the
"Purchase Agreement"). Certain capitalized terms used herein are defined in
Section 4 hereof. The amount and kind of securities obtainable pursuant to the
rights granted hereunder and the Exercise Price for such securities are subject
to adjustment pursuant to the provisions contained in this Warrant.

     This Warrant is subject to the following provisions:

     SECTION 1. EXERCISE OF WARRANT.

     1.1. EXERCISE PERIOD. The Registered Holder may exercise, in whole or in
part (but not as to a fractional share of Common Stock), the vested purchase
rights represented by this Warrant at any time and from time to time after the
Date of Issuance of this Warrant to and including the tenth anniversary of the
Initial Closing Date (the "Exercise Period").

     1.2. EXERCISE PROCEDURE.

          (i) This Warrant shall be deemed to have been exercised when the
Company has received all of the following items (the "Exercise Time"):

                    (a) a completed Exercise Agreement, as described in
          paragraph 1.3 below, executed by the Person exercising all or part of
          the purchase rights represented by this Warrant (the "Purchaser");
<PAGE>
                    (b) this Warrant;

                    (c) if this Warrant is not registered in the name of the
          Purchaser, an Assignment or Assignments in the form set forth in
          Exhibit II hereto evidencing the assignment of this Warrant to the
          Purchaser, in which case the Registered Holder shall comply with the
          provisions set forth in Section 9.8 hereof;

                    (d) either (1) a check payable to the Company in an amount
          equal to the product of the Exercise Price multiplied by the number of
          shares of Common Stock being purchased upon such exercise (the
          "Aggregate Exercise Price"), (2) the surrender to the Company of debt
          or equity securities of the Company having a Market Price equal to the
          Aggregate Exercise Price of the Common Stock being purchased upon such
          exercise (provided that for purposes of this subparagraph, the Market
          Price of any note or other debt security or any preferred stock,
          unless it is publicly traded, shall be deemed to be equal to the
          aggregate outstanding principal amount or liquidation value thereof
          plus all accrued and unpaid interest thereon or accrued or declared
          and unpaid dividends thereon) or (3) a written notice to the Company
          that the Purchaser is exercising the Warrant (or a portion thereof) by
          authorizing the Company to withhold from issuance a number of shares
          of Common Stock issuable upon such exercise of the Warrant which, when
          multiplied by the Market Price of the Common Stock, is equal to the
          Aggregate Exercise Price (and such withheld shares shall no longer be
          issuable under this Warrant); and

                    (e) a counterpart of the Stockholders' Agreement, as defined
          in the Purchase Agreement, executed by the Purchaser.

          (ii) Certificates for shares of Common Stock purchased upon exercise
of this Warrant shall be delivered by the Company to the Purchaser within five
business days after the date of the Exercise Time. Unless this Warrant has
expired or all of the purchase rights represented hereby have been exercised,
the Company shall prepare a new Warrant, substantially identical hereto,
representing the rights formerly represented by this Warrant which have not
expired or been exercised and shall within such five-day period, deliver such
new Warrant to the Person designated for delivery in the Exercise Agreement.

          (iii) The Common Stock issuable upon the exercise of this Warrant
shall be deemed to have been issued to the Purchaser and outstanding, and the
Purchaser shall be deemed for all purposes to have become the record holder of
such Common Stock, at the Exercise Time.

          (iv) The issuance of certificates for shares of Common Stock upon
exercise of this Warrant shall be made without charge to the Registered Holder
or the Purchaser for any issuance tax in respect thereof or other cost incurred
by the Company in connection with such exercise and the related issuance of
shares of Common Stock. Each share of Common Stock issuable upon exercise of
this Warrant shall, upon payment of the Exercise Price therefor, be fully paid
and nonassessable and free from all liens and charges with respect to the
issuance thereof.

          (v) The Company shall not close its books against the transfer of this
Warrant or of any share of Common Stock issued or issuable upon the exercise of
this Warrant in any manner which interferes with the timely exercise of this
Warrant. The Company shall from time

                                     - 2 -
<PAGE>
to time take all such action as may be necessary to assure that the par value
per share of the unissued Common Stock acquirable upon exercise of this Warrant
is at all times equal to or less than the Exercise Price then in effect.

          (vi) The Company shall assist and cooperate with any Registered Holder
or Purchaser required to make any governmental filings or obtain any
governmental approvals prior to or in connection with any exercise of this
warrant (including, without limitation, making any filings required to be made
by the Company).

          (vii) Notwithstanding any other provision hereof, if an exercise of
any portion of this Warrant is to be made in connection with a Public Offering
or a Sale of the Company, the exercise of any portion of this Warrant may, at
the election of the holder hereof, be conditioned upon the consummation of the
Public Offering or Sale of the Company, in which case such exercise shall not be
deemed to be effective until or immediately prior to the consummation of such
transaction.

          (viii) The Company shall at all times reserve and keep available out
of its authorized but unissued shares of Common Stock, solely for the purpose of
issuance upon the exercise of the Warrants, such number of shares of Common
Stock issuable upon the exercise of all outstanding Warrants. All shares of
Common Stock which are so issuable shall, when issued, be duly and validly
issued, fully paid and nonassessable and free from all taxes, liens and charges.
The Company shall take all such actions as may be necessary to assure that all
such shares of Common Stock may be so issued without violation of any applicable
law or governmental regulation or any requirements of any domestic securities
exchange upon which shares of Common Stock may be listed (except for official
notice of issuance, which shall be immediately delivered by the Company upon
each such issuance). The Company shall not take any action that would cause the
number of authorized but unissued shares of Common Stock to be less than the
number of such shares required to be reserved hereunder for issuance upon
exercise of all of the outstanding Warrants.

          (ix) Any certificate for shares of Common Stock issued upon the
exercise of this Warrant shall contain a legend in substantially the form of the
legend set forth on the first page of this Warrant except if such exercise is
effected in connection with a Public Offering of the Company's capital stock and
the shares of Common Stock issuable upon the exercise of this Warrant are
included in such registered offering.

     1.3. EXERCISE AGREEMENT. Upon any exercise of this Warrant, the Exercise
Agreement shall be substantially in the form set forth in Exhibit I hereto,
except that if the shares of Common Stock are not to be issued in the name of
the Person in whose name this Warrant is registered, the Exercise Agreement
shall also state the name of the Person to whom the certificates for the shares
of Common Stock are to be issued, and if the number of shares of Common Stock to
be issued does not include all the shares of Common Stock purchasable hereunder,
it shall also state the name of the Person to whom a new Warrant for the
unexercised portion of the rights hereunder is to be delivered. Such Exercise
Agreement shall be dated the actual date of execution thereof.

     1.4. FRACTIONAL SHARES. If a fractional share of Common Stock would, but
for the provisions of paragraph 1.1, be issuable upon exercise of the rights
represented by this Warrant,

                                     - 3 -
<PAGE>
in lieu of issuing such fractional share, the Company shall, within five
business days after the date of the Exercise Time, deliver to the Purchaser's
order the Company's check payable to the Purchaser in an amount equal to the
difference between the Market Price of such fractional share as of the date of
the Exercise Time and the Exercise Price of such fractional share.

     SECTION 2. ADJUSTMENT OF EXERCISE PRICE. In order to prevent dilution of
the rights granted under this Warrant, the Exercise Price shall be subject to
adjustment from time to time as provided in this Section 2.

     2.1. ADJUSTMENT OF EXERCISE PRICE UPON ISSUANCE OF COMMON STOCK.

          (i) If and whenever after the date of this Warrant, the Company issues
or sells, or in accordance with paragraph 2.2 is deemed to have issued or sold,
any share of Common Stock for a consideration per share less than the Per Share
Price, then immediately upon such issue or sale or deemed issue or sale, the
Exercise Price in effect immediately prior to such time shall be reduced to an
amount determined by dividing (a) the sum of (1) the product derived by
multiplying (i) the Per Share Price times (ii) the number of shares of Common
Stock Deemed Outstanding immediately prior to such issue or sale, plus (2) the
consideration, if any, received (or deemed received pursuant to Section 2.2
below) by the Company upon such issue or sale, by (b) the number of shares of
Common Stock Deemed Outstanding immediately after such issue or sale.
Notwithstanding the foregoing, if the Company inadvertently issues or sells, or
is deemed to have issued or sold, any share of Common Stock for a consideration
per share less than the Per Share Price, the Exercise Price in effect
immediately prior to such time shall not be reduced if the Company is able to
rescind or appropriately modify the transaction within a reasonable time after
it became aware of the reduction in the Exercise Price that would otherwise
occur.

          (ii) Notwithstanding the foregoing and Section 2.2, there shall be no
adjustment to the Exercise Price or the number of shares of Common Stock
obtainable upon exercise of this Warrant with respect to the issuance by the
Company of any Excluded Securities, and the shares of Common Stock included in
or issuable upon conversion or exercise of any Excluded Securities shall be
deemed outstanding for purposes of Section 2.1.

     2.2. EFFECT ON EXERCISE PRICE OF CERTAIN EVENTS. For purposes of
determining the adjusted Exercise Price under paragraph 2.1, the following shall
be applicable:

          (i) Issuance of Rights or Options. If the Company in any manner grants
or sells any Options and the lowest price per share for which any one share of
Common Stock is issuable upon the exercise of any such Option, or upon
conversion or exchange of any Convertible Security issuable upon exercise of
such Option, is less than the Per Share Price, then such share of Common Stock
(but only such share or shares of Common Stock) shall be deemed to be
outstanding and to have been issued and sold by the Company at such time for
such lower price per share. For purposes of this paragraph, the "lowest price
per share for which any one share of Common Stock is issuable" shall be equal to
the sum of the lowest amount of consideration (if any) paid or payable by the
option holder with respect to any one share of Common Stock upon the granting or
sale of the Option, upon exercise of the Option and upon conversion or exchange
of the Convertible Security. No further adjustment of the Exercise Price shall
be made upon the actual issue of such Common Stock or of such Convertible
Security upon the exercise of such

                                     - 4 -
<PAGE>
Options or upon the actual issue of such Common Stock upon conversion or
exchange of such Convertible Security.

          (ii) Issuance of Convertible Securities. If the Company in any manner
issues or sells any Convertible Security and the lowest price per share for
which any one share of Common Stock is issuable upon conversion or exchange
thereof is less than the Per Share Price, then such share or shares of Common
Stock (but only such share or shares of Common Stock) shall be deemed to be
outstanding and to have been issued and sold by the Company at such time for
such lower price per share. For the purposes of this paragraph, the "lowest
price per share for which any one share of Common Stock is issuable" shall be
equal to the sum of the lowest amount of consideration (if any) paid or payable
by the holder of the Convertible Security with respect to any one share of
Common Stock upon the issuance or sale of the Convertible Security and upon the
conversion or exchange of such Convertible Security. No further adjustment of
the Exercise Price shall be made upon the actual issue of such Common Stock upon
conversion or exchange of any Convertible Security, and if any such issue or
sale of such Convertible Security is made upon exercise of any Options for which
adjustments of the Exercise Price had been or are to be made pursuant to other
provisions of this Section 2, no further adjustment of the Exercise Price shall
be made by reason of such issue or sale.

          (iii) Change in Option Price or Conversion Rate. If the purchase price
provided for in any Options, the additional consideration, if any, payable upon
the issue, conversion or exchange of any Convertible Securities, or the rate at
which any Convertible Securities are convertible into or exchangeable for Common
Stock changes at any time, the Exercise Price in effect at the time of such
change shall be adjusted immediately to the Exercise Price that would have been
in effect at such time had such Options or Convertible Securities provided for
such changed purchase price, additional consideration or changed conversion
rate, as the case may be, at the time initially granted, issued or sold. For
purposes of this paragraph 2.2, if the terms of any Option or Convertible
Security that was outstanding as of the Date of Issuance of this Warrant are
changed in the manner described in the immediately preceding sentence, then such
Option or Convertible Security and the Common Stock deemed issuable upon
exercise, conversion or exchange thereof shall be deemed to have been issued as
of the date of such change; provided that no such change shall at any time cause
the Exercise Price to be increased to an amount in excess of the Exercise Price
in effect upon the issuance of this Warrant.

          (iv) Treatment of Expired Options and Unexercised Convertible
Securities. Upon the expiration of any Option or the termination of any right to
convert or exchange any Convertible Securities without the exercise of such
Option or right, the Exercise Price then in effect shall be adjusted immediately
to the Exercise Price that would have been in effect at the time of such
expiration or termination had such Option or Convertible Securities, to the
extent outstanding immediately prior to such expiration or termination, never
been issued. For purposes of this paragraph 2.2, the expiration or termination
of any Option or Convertible Security that was outstanding as of the Date of
Issuance of this Warrant shall not cause the Exercise Price hereunder to be
adjusted unless, and only to the extent that, a change in the terms of such
Option or Convertible Security caused it to be deemed to have been issued after
the Date of Issuance of this Warrant.

          (v) Calculation of Consideration Received. If any Common Stock,
Options or Convertible Securities are issued or sold or deemed to have been
issued or sold for cash, the

                                     - 5 -
<PAGE>
consideration received therefor shall be deemed to be the amount paid by the
holder to the Company for such security (including discounts, commissions and
related expenses paid to independent third parties). In case any Common Stock,
Options or Convertible Securities are issued or sold for a consideration other
than cash (including in connection with acquisitions), the amount of the
consideration other than cash paid by the holder shall be the fair value of such
consideration, except where such consideration consists of securities, in which
case the amount of consideration received by the Company shall be the Market
Price thereof as of the date of receipt. In case any Common Stock, Options or
Convertible Securities are issued to the owners of the non-surviving entity in
connection with any merger in which the Company is the surviving corporation,
the amount of consideration therefor shall be deemed to be the fair value of
such portion of the net assets and business of the non-surviving entity as is
attributable to such Common Stock, Options or Convertible Securities, as the
case may be. The fair value of any consideration other than cash or securities
shall be as determined pursuant to the Investor Warrants.

          (vi) Integrated Transactions. In case any Option is issued in
connection with the issue or sale of other securities of the Company, together
comprising one integrated transaction in which no specific consideration is
allocated to such Options by the parties thereto, the Options shall be deemed to
have been issued for a consideration determined in good faith by the Board of
Directors.

          (vii) Treasury Shares. The number of shares of Common Stock
outstanding at any given time does not include shares owned or held by or for
the account of the Company or any Subsidiary, and the disposition of any shares
so owned or held shall be considered an issue or sale of Common Stock.

          (viii) Record Date. If the Company takes a record of the holders of
Common Stock for the purpose of entitling them (A) to receive a dividend or
other distribution payable in Common Stock, Options or in Convertible Securities
or (B) to subscribe for or purchase Common Stock, Options or Convertible
Securities, then such record date shall be deemed to be the date of the issue or
sale of the shares of Common Stock deemed to have been issued or sold upon the
declaration of such dividend or the making of such other distribution or the
date of the granting of such right of subscription or purchase, as the case may
be.

     2.3. SUBDIVISION OR COMBINATION OF COMMON STOCK. If the Company at any time
subdivides (by any stock split, stock dividend, recapitalization or otherwise)
one or more classes of its outstanding shares of Common Stock into a greater
number of shares, the Exercise Price in effect immediately prior to such
subdivision shall be proportionately reduced and the number of shares of Common
Stock obtainable upon exercise of this Warrant shall be proportionately
increased. If the Company at any time combines (by reverse stock split or
otherwise) one or more classes of its outstanding shares of Common Stock into a
smaller number of shares, the Exercise Price in effect immediately prior to such
combination shall be proportionately increased and the number of shares of
Common Stock obtainable upon exercise of this Warrant shall be proportionately
decreased.

     2.4. REORGANIZATION, RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE. Prior
to the consummation of any Organic Change, the Company shall make appropriate
provision (on the same terms as the comparable provision made with respect to
the Investor Warrants) to ensure

                                     - 6 -
<PAGE>
that the Registered Holder shall thereafter have the right to acquire and
receive, in lieu of or in addition to (as the case may be) the shares of Common
Stock immediately theretofore acquirable and receivable upon the exercise of
this Warrant, such shares of stock, securities or assets as may be issued or
payable with respect to or in exchange for the number of shares of Common Stock
immediately theretofore acquirable and receivable upon exercise of this Warrant
had such Organic Change not taken place. In any such case, the Company shall
make appropriate provision on the same terms as the comparable provision made
with respect to the Investor Warrants) with respect to such holders' rights and
interests to ensure that the provisions of this Section 2 and Section 3 hereof
shall thereafter be applicable to this Warrant (including, in the case of any
such consolidation, merger or sale in which the successor entity or purchasing
entity is other than the Company, an adjustment of the Exercise Price or number
of shares of Common Stock acquirable and receivable upon exercise of this
Warrant in accordance with Section 2.1 hereof as if such securities issuable
upon any such consolidation, merger or sale were issued by the Company. The
Company shall not effect any such consolidation, merger or sale, unless prior to
the consummation thereof, the successor entity (if other than the Company)
resulting from consolidation or merger or the entity purchasing such assets
assumes by written instrument (in form and substance equivalent to the
instrument, if any, used to assume the obligations under the Investor Warrants),
the obligation to deliver to each such holder such shares of stock, securities
or assets as, in accordance with the foregoing provisions, such holder may be
entitled to acquire.

     2.5. CERTAIN EVENTS. If any event occurs of the type contemplated by the
provisions of this Section 2 but not expressly provided for by such provisions
(including, without limitation, the granting of stock appreciation rights,
phantom stock rights or other rights with equity features), then the Company's
board of directors shall make an appropriate adjustment in the Exercise Price
and the number of shares of Common Stock obtainable upon exercise of this
Warrant so as to protect the rights of the holder hereof; provided that no such
adjustment shall increase the Exercise Price or decrease the number of shares of
Common Stock obtainable as otherwise determined pursuant to this Section 2.

     2.6. NOTICES.

          (i) Immediately upon any adjustment of the Exercise Price, the Company
shall give written notice thereof to the Registered Holder, setting forth in
reasonable detail and certifying the calculation of such adjustment.

          (ii) The Company shall give written notice to the Registered Holder at
least 20 days prior to the date on which the Company closes its books or takes a
record (A) with respect to any dividend or distribution upon the Common Stock,
(B) with respect to any pro rata subscription offer to holders of Common Stock
or (C) for determining rights to vote with respect to any Organic Change,
dissolution or liquidation.

          (iii) The Company shall also give written notice to the Registered
Holder at least 20 days prior to the date on which any Organic Change,
dissolution or liquidation shall take place.

     SECTION 3. DIVIDENDS. If the Company declares or pays a Dividend, then the
Company shall set aside such Dividend for payment upon exercise of this Warrant
to the Registered Holder of this Warrant the Dividend that would have been paid
to such Registered

                                     - 7 -
<PAGE>
Holder on the Common Stock had this Warrant been fully exercised immediately
prior to the date on which a record is taken for such Dividend, or, if no record
is taken, the date as of which the record holders of Common Stock entitled to
such dividends are to be determined.

     SECTION 4. DEFINITIONS. The following terms have meanings set forth below:

          "Capital Securities" means, as to any Person that is a corporation,
the authorized shares of such Person's capital stock, including all classes of
common, preferred, voting and nonvoting capital stock, and, as to any Person
that is not a corporation or an individual, the ownership interests in such
Person, including, without limitation, the right to share in profits and losses,
the right to receive distributions of cash and property, and the right to
receive allocations of items of income, gain, loss, deduction and credit and
similar items from such Person, whether or not such interests include voting or
similar rights entitling the holder thereof to exercise control over such
Person.

          "Commission" shall mean the United States Securities and Exchange
Commission or any other federal agency at the time administering the Securities
Act.

          "Common Stock" means the Company's Common Stock, $.01 par value per
share, and except for purposes of the shares obtainable upon exercise of this
Warrant, any capital stock of any class of the Company hereafter authorized that
is not limited to a fixed sum or percentage of par or stated value in respect to
the rights of the holders thereof to participate in dividends or in the
distribution of assets upon any liquidation, dissolution or winding up of the
Company.

          "Common Stock Deemed Outstanding" has the meaning given such term in
the Purchase Agreement.

          "Company Registration Cutback" has the meaning specified in Section
9.1(b).

          "Convertible Securities" has the meaning given such term in the
Purchase Agreement.

          "Date of Issuance" has the meaning specified in Section 7.

          "Dividend" means any dividend or other distribution upon the Common
Stock except for a stock dividend payable in shares of Common Stock.

          "Excluded Securities" has the meaning given such term in the Purchase
Agreement.

          "Initial Closing Date" has the meaning given such term in the Purchase
Agreement.

          "Investor Warrants" means the Common Stock Purchase Warrants issued by
the Company to the "Purchasers" under the Purchase Agreement.

          "IPO" has the meaning given such term in the Stockholder's Agreement.

                                     - 8 -
<PAGE>
          "Market Price" means, as to any security, the average of the closing
prices of such security's sales on all domestic securities exchanges on which
such security may at the time be listed, or, if there have been no sales on any
such exchange on any day, the average of the highest bid and lowest asked prices
on all such exchanges at the end of such day, or, if on any day such security is
not so listed, the average of the representative bid and asked prices quoted in
the NASDAQ System as of 4:00 P.M., New York time, on such day, or, if on any day
such security is not quoted in the NASDAQ System, the average of the highest bid
and lowest asked prices on such day in the domestic over-the-counter market as
reported by the National Quotation Bureau, Incorporated, or any similar
successor organization, in each such case averaged over a period of 21 days
consisting of the day as of which "Market Price" is being determined and the 20
consecutive business days prior to such day; provided that if such security is
listed on any domestic securities exchange the term "business days" as used in
this sentence means business days on which such exchange is open for trading. If
at any time such security is not listed on any domestic securities exchange or
quoted in the NASDAQ System or the domestic over-the-counter market, the "Market
Price" shall be the fair value thereof as of such time if and as determined
pursuant to the Investor Warrants or, if not so determined, the fair value
thereof determined jointly by the Company and the Registered Holder; provided
that if such parties are unable to reach agreement within a reasonable period of
time, such fair value shall be determined by an appraiser jointly selected by
the Company and the Registered Holder. The determination of such appraiser shall
be final and binding on the Company and the Registered Holder, and the fees and
expenses of such appraiser shall be paid by the Company.

          "Options" means any rights or options to subscribe for or purchase
Common Stock or Convertible Securities.

          "Organic Change" means any recapitalization, reorganization,
reclassification, Sale of the Company or other transaction, in each case, which
is effected in such a way that the holders of Common Stock are entitled to
receive (either directly or upon subsequent liquidation) stock, securities or
assets with respect to or in exchange for Common Stock.

          "Per Share Price" has the meaning given such term in the Purchase
Agreement.

          "Person" means an individual, a partnership, a joint venture, a
corporation, a limited liability company, a trust, an unincorporated
organization and a government or any department or agency thereof.

          "Private Placement" has the meaning given such term in the
introduction to this Warrant.

          "Proceeds" means the aggregate gross proceeds received by the Company
from all investors in the Private Placement, in the first and any subsequent
closings.

          "Public Offering" has the meaning given such term in the Purchase
Agreement.

          "Purchase Rights" means any Options, Convertible Securities or rights
to purchase stock, warrants, securities or other property pro rata to the record
holders of any class of Common Stock.

                                     - 9 -
<PAGE>
          "Registered Holder" has the meaning given such term in the
introductory language to this Warrant; provided that, for the purpose of Section
9 hereof, "Registered Holder" also shall include any holder of Registrable
Securities.

          The terms "register," "registered" and "registration" refer to a
registration in the United States effected by preparing and filing a
registration statement in compliance with the Securities Act, and the
declaration or ordering of the effectiveness of such registration statement.

          "Registrable Securities" shall mean (i) the Common Stock issued or
issuable pursuant to the exercise of this Warrant; (ii) any Common Stock or
other securities issued or issuable with respect to the Common Stock described
in clause (i) above, upon any stock split, stock dividend, recapitalization, or
similar event, which shares have not been sold to the public; and (iii)
securities issued in replacement or exchange of any of the securities described
in clauses (i) or (ii) above.

          "Registration Expenses" shall mean all expenses incurred by the
Company in complying with Sections 9.1 and 9.4 hereof, including, without
limitation, all registration, qualification and filing fees, printing expenses,
escrow fees, fees and disbursements of counsel for the Company, blue sky fees
and expenses, and the expense of any special audits incident to or required by
any such registration (but excluding the compensation of regular employees of
the Company which shall be paid in any event by the Company), but not including
Selling Expenses.

          "Sale of the Company" has the meaning given such term in the Purchase
Agreement.

          "Securities Act" shall mean the United States Securities Act of 1933,
as amended, or any similar federal statute and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

          "Selling Expenses" shall mean all underwriting fees, discounts,
selling commissions and stock transfer taxes applicable to the Registrable
Securities registered by a Registered Holder.

          Other capitalized terms used in this Warrant but not defined herein
shall have the meanings set forth in the Purchase Agreement.

     SECTION 5. NO VOTING RIGHTS; LIMITATIONS OF LIABILITY. This Warrant shall
not entitle the holder hereof to any voting rights or other rights as a
stockholder of the Company not set forth herein. No provision hereof, in the
absence of affirmative action by the Registered Holder to purchase Common Stock,
and no enumeration herein of the rights or privileges of the Registered Holder
shall give rise to any liability of such holder for the Exercise Price of Common
Stock acquirable by exercise hereof or as a stockholder of the Company.

     SECTION 6. WARRANT TRANSFERABLE. This Warrant and all rights hereunder are
transferable, in whole or in part, without charge to the Registered Holder, upon
surrender of this Warrant with a properly executed Assignment (in the form of
Exhibit II hereto) at the principal

                                     - 10 -
<PAGE>
office of the Company, only to an investor that is not an entity engaged in a
business competitive with the Company and that shall agree to be bound by the
limitations on disposition set forth herein.

     SECTION 7. WARRANT EXCHANGEABLE FOR DIFFERENT DENOMINATIONS. This Warrant
is exchangeable, upon the surrender hereof by the Registered Holder at the
principal office of the Company, for new Warrants of like tenor representing in
the aggregate the rights hereunder, and each of such new Warrants shall
represent such portion of such rights as is designated by the Registered Holder
at the time of such surrender. The date the Company initially issued this
Warrant shall be deemed to be the "Date of Issuance" hereof regardless of the
number of times new certificates representing the unexpired and unexercised
rights formerly represented by this Warrant shall be issued. All Warrants
representing portions of the rights hereunder are referred to herein as the
"Warrants."

     SECTION 8. REPLACEMENT. Upon receipt of evidence reasonably satisfactory to
the Company (an affidavit of the Registered Holder shall be satisfactory) of the
ownership and the loss, theft, destruction or mutilation of any certificate
evidencing this Warrant, and in the case of any such loss, theft or destruction,
upon receipt of indemnity reasonably satisfactory to the Company (provided that
if the holder is an entity with capital and surplus in excess of three times the
value of the Common Stock that can be purchased upon exercise of this Warrant,
such holder's agreement shall be satisfactory), or, in the case of any such
mutilation upon surrender of such certificate, the Company shall (at its
expense) execute and deliver in lieu of such certificate a new certificate of
like kind representing the same rights represented by such lost, stolen,
destroyed or mutilated certificate and dated the date of such lost, stolen,
destroyed or mutilated certificate.

     SECTION 9. REGISTRATION RIGHTS.

     9.1 Company Registration.

          (i) NOTICE OF REGISTRATION. If at any time prior to five (5) years
after consummation of an IPO, the Company shall determine to register any of its
securities, either for its own account or the account of a security holder or
holders, other than (i) a registration relating solely to employee benefit
plans, or (ii) a registration relating solely to a Commission Rule 145
transaction, the Company will:

          (a) promptly give written notice thereof to each Registered Holder;
          and

          (b) include in such registration (and any related qualification under
          blue sky laws or other compliance), and in any underwriting involved
          therein, all the Registrable Securities specified in a written request
          or requests, made within twenty (20) days after receipt of such
          written notice from the Company, by any Registered Holder, subject to
          the Company Registration Cutback.

          (ii) Underwriting. If the registration of which the Company gives
notice is for a registered public offering involving an underwriting, the
Company shall so advise the Registered

                                     - 11 -
<PAGE>
Holders as a part of the written notice given pursuant to Section 9.1(i)(a). In
such event the right of any Registered Holder to registration pursuant to this
Section 9.1 shall be conditioned upon such Registered Holder's participation in
such underwriting and the inclusion of such Registered Holder's Registrable
Securities in the underwriting to the extent provided herein. All Registered
Holders proposing to distribute their securities through such underwriting shall
(together with the Company and the other holders distributing their securities
through such underwriting) enter into an underwriting agreement in the form
agreed to by the Company and the managing underwriter selected for such
underwriting by the Company. Notwithstanding any other provision of this Section
9.1, if the managing underwriter determines the number of shares requested to be
included in the registration exceeds the number which can be sold in an orderly
manner in such offering within a price range acceptable to the Company or
marketing factors require a limitation of the number of shares to be
underwritten on behalf of the Company (the "Company Registration Cutback"), then
the Company will include in such registration, to the extent of the number and
type which the Company is so advised can be sold in (or during the time of) such
offering without such affect on the price, first, all securities of the Company
proposed to be sold by the Company for its own account, second, the Registrable
Securities requested by the Registered Holders to be included in such
registration consistent with and subject to the requirements of the
Stockholders' Agreement, and finally, any other securities of the Company
requested by other holders of Common Stock to be included in such registration.

     9.2 EXPENSES OF REGISTRATION. All Registration Expenses, other than and the
fees of counsel for any selling Registered Holders, incurred in connection with
any registration pursuant to Sections 9.1 and 9.4, shall, to the extent
permitted by applicable law, be borne by the Company. All other Selling Expenses
relating to Registrable Securities registered by the Registered Holders shall be
borne by the respective Registered Holders pro rata on the basis of the number
of shares so registered.

     9.3 REGISTRATION PROCEDURES. In the case of each registration effected by
the Company pursuant to this Agreement, the Company will keep each Registered
Holder advised in writing as to the initiation of each registration,
qualification and compliance and as to the completion thereof. The Company will:

          (i) keep such registration, qualification or compliance effective and
current for a period of 180 days (or such longer period as may be necessary to
accommodate the filing of amendments or supplements necessary to comply with the
Securities Act) or until the holders of all securities registered in such
registration have completed the distribution described in the registration
statement relating thereto, whichever first occurs;

          (ii) furnish such number of prospectuses and other documents incident
thereto as a Registered Holder from time to time may reasonably request;

          (iii) use its best efforts to register or qualify the securities
covered by such registration statement under such other securities or blue sky
laws of such jurisdictions as

                                     - 12 -
<PAGE>
any seller holding at least 10% of the Registrable Securities then being
registered reasonably requests and do any and all other acts and things which
may be reasonably necessary or advisable to enable such seller to consummate the
disposition in such jurisdictions of the Registrable Securities owned by such
seller; provided, that nothing in this Section 9.3 shall require the Company to
execute any general consent to service of process in any state;

          (iv) in the event of any underwritten public offering, enter into and
perform its obligations under an underwriting agreement, in usual and customary
form, with the managing underwriter of such offering. Each Registered Holder and
the Company participating in such underwriting shall also enter into and perform
its obligations under such an agreement;

          (v) notify each Registered Holder with Registrable Securities covered
by such registration statement, at any time when a prospectus relating thereto
covered by such registration statement is required to be delivered under the
Securities Act, of the happening of any event as a result of which the
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing and of any Commission
stop orders or other material modifications in connection therewith (and in such
event, any holder of such securities shall suspend the sale or distribution of
such securities until such time as said event is corrected);

          (vi) cause all such Registrable Securities covered by such
registration statement to be listed on each securities exchange on which the
same class of securities issued by the Company are then listed, if the listing
of such Registrable Securities is then permitted under the rules and regulations
of such exchange and, if requested by the Registered Holders, cause all such
Registrable Securities, if the Company's securities are not already listed or
traded, to be listed on any securities exchange reasonably requested by the
Registered Holders;

          (vii) provide a transfer agent and registrar for all such Registrable
Securities not later than the effective date of such registration statement;

          (viii) enter into such customary agreements and take all such other
actions as the Registered Holders or the underwriters, if any, reasonably
request in order to expedite or facilitate the disposition of such Registrable
Securities (including effecting a stock split or a combination of shares);

          (ix) make available for inspection by Registered Holders who hold all
of the Registrable Securities, any underwriter participating in any disposition
pursuant to such registration statement and any attorney, accountant or other
agent retained by any such seller or underwriter, all financial and other
records, pertinent corporate documents

                                     - 13 -
<PAGE>
and properties of the Company, and cause the Company's officers, directors,
employees and independent accountants to supply all information reasonably
requested by any such seller, underwriter, attorney, accountant or agent in
connection with such registration statement;

          (x) otherwise use its best efforts to comply with all applicable rules
and regulations of the Commission, and make available to its security holders,
as soon as reasonably practicable, an earnings statement covering the period of
at least twelve months beginning with the first day of the Company's first full
calendar quarter after the effective date of the registration statement, which
earnings statement shall satisfy the provisions of Section 11(a) of the
Securities Act and Rule 158 thereunder;

          (xi) permit any Registered Holder which, in the reasonable judgment of
such Registered Holder's counsel, might be deemed to be an underwriter or a
controlling Person of the Company, to participate in the preparation of such
registration or comparable statement and to require the insertion therein of
material, furnished to the Company in writing, which in the reasonable judgment
of such Registered Holder and its counsel and concurred with by the Company and
its Counsel should be included;

          (xii) in the event of the issuance of any stop order suspending the
effectiveness of a registration statement, or of any order suspending or
preventing the use of any related prospectus or suspending the qualification of
any Registrable Securities included in such registration statement for sale in
any jurisdiction, the Company shall use its best efforts promptly to obtain the
withdrawal of such order;

          (xiii) use its best efforts to cause such Registrable Securities
covered by such registration statement to be registered with or approved by such
other governmental agencies or authorities as may be necessary to enable the
sellers thereof to consummate the disposition of such Registrable Securities;
and

          (xiv) obtain a cold comfort letter from the Company's independent
public accountants in customary form and covering such matters of the type
customarily covered by cold comfort letters as required by the underwriting
agreement or, if other than an underwritten offering, as the holders of a
majority of securities being sold pursuant to the applicable registration
statement may reasonably request.

     9.4 REGISTRATION ON FORM S-3. In addition to the rights set forth in
Section 10.1, if the Registered Holders request that the Company file a
registration statement on Form S-3 (or any successor form to Form S-3) for a
public offering of shares of Registrable Securities, and the Company is a
registrant entitled to use Form S-3 to register the Registrable Securities for
such an offering, the Company shall use its best efforts to cause such shares to
be registered for the offering as soon as practicable on Form S-3 (or any
successor form to Form S-3). The procedures and other limitations for effecting
the registration of the Registrable Securities on Form S-3 (or any successor
form to Form S-3), including the procedure used for any

                                     - 14 -
<PAGE>
underwriting limitation, shall be as set forth in Section 10.1 above; provided,
however, that (i) the number of registrations that may be requested by the
Registered Holders on Form S-3 (or any successor form to Form S-3) shall be
limited to one (1), none of which shall involve an underwriting, and (ii) the
Company shall not be obligated to effect a registration under this Section 9.4
if the minimum estimated dollar value of any offering of Registrable Securities
pursuant to this Section 9.4 is less than $300,000 and (iii) the Company shall
not be obligated to effect a registration under this Section 9.4 to the extent
that the Registration Securities to be included in such registration may, within
thirty (30) days following the proposed effective date of any such registration,
be sold without registration pursuant to paragraph (k) of Rule 1944.

     9.5 INDEMNIFICATION.

          (i) The Company will indemnify each Registered Holder, each of its
officers and directors and partners and each Person controlling any such Persons
within the meaning of Section 15 of the Securities Act, with respect to which
any registration, qualification or compliance has been effected pursuant to this
Agreement, and each underwriter, if any, and each Person who controls any
underwriter within the meaning of Section 15 of the Securities Act, against all
expenses, claims, losses, damages and liabilities (or actions in respect
thereof), including any of the foregoing incurred in the investigation or
settlement of any litigation, commenced or threatened, arising out of or based
on any untrue statement (or alleged untrue statement) of a material fact
contained in any registration statement, prospectus, offering circular or other
document, or any amendment or supplement thereto, incident to any such
registration, qualification or compliance, or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein, not misleading, or any violation by
the Company of any rule or regulation promulgated under the Securities Act or
any state securities laws applicable to the Company and relating to action or
inaction required of the Company in connection with any such registration,
qualification or compliance, and will reimburse each such Registered Holder,
each of its officers and directors and each Person controlling any such Persons,
each such underwriter and each Person who controls any such underwriter, for any
legal and any other expenses reasonably incurred in connection with
investigating, preparing or defending any such claim, loss, damage, liability or
action, provided that the Company will not be liable in any such case to the
extent that any such claim, loss, damage, liability, expense, or violation
arises out of or is based on any untrue statement or omission or alleged untrue
statement or omission, made in reliance upon and in conformity with written
information furnished to the Company by an instrument duly executed by such
Registered Holder or underwriter and stated to be specifically for use therein,
or any action or inaction required of any Purchaser in connection therewith.

          (ii) Each Registered Holder will, if Registrable Securities held by
such Registered Holder are included in the securities as to which such
registration is being effected, indemnify the Company, each of its directors and
officers, each underwriter, if any, of the Company's securities covered by such
a registration statement, each Person who controls the Company or such
underwriter within the meaning of Section 15 of the Securities Act, and each
other such Person whose securities are covered by such registration statement,
each of its officers and directors and

                                     - 15 -
<PAGE>
each Person controlling such selling securityholder within the meaning of
Section 15 of the Securities Act, against all claims, losses, damages and
liabilities (or actions in respect thereof) arising out of or based on any
untrue statement (or alleged untrue statement) of a material fact contained in
any such registration statement, prospectus, offering circular or other
document, or any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, [or any violation by such Registered Holder of any rule or
regulation promulgated under the Securities Act or any state securities laws
applicable to such Registered Holder and relating to action or inaction required
of such Registered Holder in connection with any such registration,
qualification or compliance,] and will reimburse the Company, such other selling
securityholders, such directors, officers, legal counsel, independent
accountants, underwriters or control Persons for any legal or any other expenses
reasonably incurred in connection with investigating or defending any such
claim, loss, damage, liability or action, in each case to the extent, but only
to the extent, that such untrue statement (or alleged untrue statement) or
omission (or alleged omission) is made in such registration statement,
prospectus, offering circular or other document in reliance upon and in
conformity with written information furnished to the Company by an instrument
duly executed by such Registered Holder and stated to be specifically for use
therein or such violation arises out of any action or inaction required of such
Registered Holder in connection therewith; provided, however, that the
obligation of such Registered Holder hereunder shall be limited to an amount
equal to the proceeds received by such Registered Holder upon the sale of the
Registrable Securities sold in the offering covered by such registration.

          (iii) Each party entitled to indemnification under this Section 9.5
(the "Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party (whose approval shall not unreasonably be
withheld). The Indemnified Party may participate in such defense at such party's
expense; provided, however, that the Indemnifying Party shall bear the expense
of such defense of the Indemnified Party if representation of both parties by
the same counsel would be inappropriate due to actual or potential conflicts of
interest (as determined in good faith by the Indemnified Party). The failure of
any Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Agreement unless the failure to
do so materially prejudices the Indemnifying Party. No Indemnifying Party, in
the defense of any such claim or litigation, shall, except with the consent of
each Indemnified Party, consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving by
the claimant or plaintiff to such Indemnified Party of a release from all
liability in respect to such claim or litigation.

          (iv) An Indemnifying Party shall make payment in satisfaction of its
obligations under this Section 9.5 within thirty (30) days upon receiving
written confirmation from the Indemnified Party of the nature and amount of the
expenses to be indemnified.

                                     - 16 -
<PAGE>
          (v) If the indemnification provided for in this Section 9.5 is
unavailable or insufficient to hold harmless an Indemnified Party, then each
Indemnifying Party shall contribute to the amount paid or payable to such
Indemnified Party as a result of the losses, claims, damages or liabilities
referred to in this Section 9.5 an amount or additional amount, as the case may
be, in such proportion as is appropriate to reflect the relative fault of the
Indemnifying Party or parties on the one hand and the Indemnified Party on the
other in connection with the statements or omissions which resulted in such
losses, claims, demands or liabilities as well as any other relevant equitable
considerations. The relative fault shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by the Indemnifying Party or parties on the one hand or the
Indemnified Party on the other and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such untrue
statement or omission. The amount paid to an Indemnified Party as a result of
the losses, claims, damages or liabilities referred to in the first sentence of
this Section 9.5(v) shall be deemed to include any legal or other expenses
reasonably incurred by such Indemnified Party in connection with investigating
or defending any action or claim which is the subject of this Section 9.5. No
Person guilty of 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.

          (vi) The indemnification provided for under this Agreement shall
remain in full force and effect regardless of any investigation made by or on
behalf of the Indemnified Party or any officer, director or controlling Person
of such Indemnified Party and shall survive the transfer of securities.

     9.6 INFORMATION BY REGISTERED HOLDER. Each Registered Holder including
Registrable Securities in any registration shall furnish to the Company such
information regarding such Registered Holder and the distribution proposed by
such Registered Holder as the Company may request in writing and as shall be
required in connection with any registration, qualification or compliance
referred to in this Agreement.

     9.7 RULE 144 REPORTING. With a view to making available the benefits of
certain rules and regulations of the Commission which may at any time permit the
sale of securities of the Company to the public without registration, after such
time as a public market exists for the Common Stock of the Company, the Company
agrees to:

          (i) Make and keep public information available, as those terms are
understood and defined in Rule 144 under the Securities Act, at all times after
the effective date of the first registration under the Securities Act filed by
the Company for an offering of its securities to the general public;

          (ii) File with the Commission in a timely manner all reports and other
documents required of the Company under the Securities Act and the Securities
Exchange

                                     - 17 -
<PAGE>
Act of 1934, as amended (at any time after it has become subject to such
reporting requirements);

     (iii) So long as a Registered Holder owns any Registrable Securities to
furnish to the Registered Holder forthwith upon request a written statement by
the Company as to its compliance with the reporting requirements of said Rule
144 (at any time after 90 days after the effective date of the first
registration statement filed by the Company under the Securities Act for an
offering of its securities to the general public), and of the Securities Act and
the Securities Exchange Act of 1934 (at any time after it has become subject to
such reporting requirements), a copy of the most recent annual or quarterly
report of the Company, and such other reports and documents of the Company as a
Registered Holder may reasonably request in availing itself of any rule or
regulation of the Commission allowing a Registered Holder to sell any such
securities without registration.

     9.8 TRANSFER OF REGISTRATION RIGHTS. The rights to cause the Company to
register securities granted to Registered Holders under Sections 9.1 and 9.4 may
be assigned to a transferee or assignee in connection with the transfer or
assignment of any portion of this Warrant or of any of the Registrable
Securities, provided, that (i) such transfer may otherwise be effected in
accordance with applicable securities laws and the provisions of this Warrant,
(ii) the Company is given reasonably prompt written notice of such assignment,
and (iii) the transferee executes an instrument reasonably satisfactory to the
Company agreeing to be bound by the obligations of a Registered Holder under
this Section 9. In addition, rights to cause the Company to register securities
may be assigned (on the foregoing terms) to any constituent partner (or any
partner of such partner if such partner is itself a partnership) of a Registered
Holder, where such Registered Holder is a partnership, or to any parent or
subsidiary corporation or any officer, director or shareholder thereof, where
such Registered Holder is a corporation. For purposes of the preceding sentence
"partnership" shall include "limited liability company," and "partner" shall
include "member of a limited liability company."

     9.9 GENERAL. In the event the Company is obligated to effect a public
offering, the Company shall cause such meetings to be held, votes cast,
resolutions passed, by-laws enacted, documents executed and all acts and things
done to effect the public offering on customary and usual terms.

     9.10 LOCK-UP AGREEMENTS. In connection with any firm commitment
underwritten offering in which they are participating, if requested to do so by
the managing underwriter for such offering, the Registered Holders shall agree
not to sell or otherwise transfer any shares of Common Stock or any other
Capital Securities of the Company (other than any Registrable Securities or
other securities of the Company being registered in such offering), without the
consent of the managing underwriters, during the 7 days prior to and up to 180
days following the effective date of the registration statement relating to such
offering.

                                     - 18 -
<PAGE>
     9.11 SURVIVAL. The provisions of this Section 9 shall survive the full
exercise of this Warrant and until five (5) years after consummation of an IPO.
In addition, the obligations of the Company and Registered Holders under Section
9.5 shall survive the completion of any offering of Registrable Securities under
this Agreement indefinitely.

     SECTION 10. NOTICES. Except as otherwise expressly provided herein, all
notices referred to in this Warrant shall be in writing and shall be delivered
personally, sent by reputable overnight courier service (charges prepaid) or
sent by registered or certified mail, return receipt requested, postage prepaid
and shall be deemed to have been given when so delivered, sent or deposited in
the U.S. Mail (i) to the Company, at its principal executive offices and (ii) to
the Registered Holder of this Warrant, at such holder's address as it appears in
the records of the Company (unless otherwise indicated by any such holder).

     SECTION 11. AMENDMENT AND WAIVER. Except as otherwise provided herein, the
provisions of the Warrants may be amended and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed by
it, only if the Company has obtained the written consent of Registered Holders
of at least a majority of the Registrable Securities.

     SECTION 12. DESCRIPTIVE HEADINGS; GOVERNING LAW. The descriptive headings
of the several Sections and paragraphs of this Warrant are inserted for
convenience only and do not constitute a part of this Warrant. All issues and
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be governed by, and construed in accordance with, the laws
of the State of Delaware, without giving effect to any choice of law or conflict
of law provision or rule (whether of the State of Delaware or any other
jurisdiction) that would cause the application of the domestic substantive laws
of any jurisdiction other than the State of Delaware.

                                     - 19 -
<PAGE>
     IN WITNESS WHEREOF, each of the parties has caused this Warrant to be
signed and attested by its duly authorized officers under its corporate seal and
to be dated the Date of Issuance hereof.

                                        OMRIX BIOPHARMACEUTICALS, INC.

                                        By       /s/ Robert Taub
                                          ---------------------------------
                                        Its        President
                                           --------------------------------
[Corporate Seal]

Attest:

                                          /s/ Jos B. Peeters
----------------------------------      -----------------------------------
                                        CAPRICORN VENTURE
Title:                                  PARTNERS n.v.
      ----------------------------      Represented by Dr. Jos B. Peeters,
                                        Managing Director

                                     - 20 -
<PAGE>
                                                                       EXHIBIT I

                               EXERCISE AGREEMENT

To:                                            Dated:

          The undersigned, pursuant to the provisions set forth in the attached
Warrant (Certificate W-CAP #1), hereby agrees to subscribe for the purchase of
___________ shares of the Common Stock covered by such Warrant and makes payment
herewith in full therefor at the price per share provided by such Warrant.

          Payment shall be made by (check one of the following):

          _____ 1. Delivery of $________ transmitted hereby by check.

          _____ 2. Delivery of stock certificate no(s). ____________ and
surrender of ____ shares of the Company's _________ stock evidenced thereby
having a Market Price on the date hereof of $_______ (computed in accordance
with the definition of Market Price set forth in Section 4 of the Warrant) (i.e.
a "cashless" exercise).

          _____ 3. Delivery of the Company's _______ Note in the aggregate
principal amount of $_______ and surrender of $_______ in principal amount
thereof, plus accrued and unpaid interest in the amount of $________ having a
Market Price on the date hereof of $___________ (computed in accordance with the
definition of Market Price set forth in Section 4 of the Warrant) (i.e. a
"cashless" exercise).

          _____ 4. Surrender of _________ shares of Common Stock, exercisable
under Warrant No. ___ having a Market Price on the date hereof of $_________
(computed in accordance with the definition of Market Price set forth in Section
5 of the Warrant) (i.e., a net issuance exercise).

                                               Signature ____________________

                                               Address ______________________

                                     - 21 -
<PAGE>
                                                                      EXHIBIT II

                                   ASSIGNMENT

          FOR VALUE RECEIVED, _____________________________ hereby sells,
assigns and transfers all of the rights of the undersigned under the attached
Warrant (Certificate W-CAP #1) with respect to the number of shares of the
Common Stock covered thereby set forth below, unto:

Names of Assignee              Address                       No. of Shares

                                               Signature_____________________

                                                        _____________________

                                               Witness ______________________

         THE UNDERSIGNED ASSIGNEE hereby agrees to be bound by the limitations
on further disposition of this Warrant set forth in Section 6 hereof.

                                               Signature_____________________

                                               Name _________________________

                                     - 22 -

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