Apps won't install, please help.

I have an iMac which I use for my small business, for a particular software I had to fragment the disk and run Windows and after a few months I removed windows and now I have OSX 10.6.8. My problem is that the apps that I bought via my second iMac are not being installed on first iMac. Apps show up in the purchase history and and when I click on them, install button shows up as well but when I click to install, it says I need OSX 10.7 or higher. Now I tried regular software update and looks like 10.6.8 is the latest (at least automatically).
Now my questions is, do I need to buy the OSX 10.7 or higher, is that why my mac is not upgrading above 1.6.8 via updtae option or do I ineed to manually download 10.7 and install?
Appreciate your time and help, guys!

My problem is that the apps that I bought via my second iMac are not being installed on first iMac. Apps show up in the purchase history and and when I click on them, install button shows up as well but when I click to install, it says I need OSX 10.7 or higher
To run those apps you will need to upgrade your Mac to v10.7 or later.
See Step 1 to see if your Mac qualifies to upgarde directly to Mountain Lion v10.8 (without having to purchase v10.7 Lion  >   Apple - Upgrade your Mac to OS X Mountain Lion.
is that why my mac is not upgrading above 1.6.8 via updtae option or do I ineed to manually download 10.7 and install?
Software update is for updating your system software, not upgrading. There's a difference between updating and upgrading.
An update would be going from 10.6.7 to 10.6.8. An upgrade is going from v10.6 Snow Leopard, v10.7 Lion, or v10.8 Mountain Lion.
Mountain Lion can be purchased from the App Store. Click your Apple menu icon top left in your screen. From the drop down menu click App Store. Or click the App Store menu icon in the Dock, or lauch the App Store from your Applications folder.

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