SUBSCRIPTION
AGREEMENT


 


Motus
GI Holdings, Inc.


Motus
GI Medical Technology Ltd.


150
Union Square Drive


New
Hope, PA 18938


 


Ladies
and Gentlemen:


 


1.
Subscription. The undersigned (the “Purchaser”), intending to be legally bound, hereby irrevocably agrees to
purchase from Motus GI Holdings, Inc., a Delaware corporation (the “Company”), the number of units (the “Units”)
set forth on the signature page hereof at a purchase price of $5.00 per Unit. Each Unit consists of (i) three-quarter (3/4) share
of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), and (ii) one-quarter (1/4)
share of the Company’s Series A Convertible Preferred Stock, par value $0.0001 per share (the “Series A Stock”),
with a minimum investment amount of $250,000, provided a lower subscription amount may be accepted at the discretion of the Company
and the Placement Agent (as defined below). The Units are being sold in the Offering (as defined below), the initial closing of
which will close contemporaneously with the share exchange transaction whereby the stockholders of Motus GI Medical Technology
Ltd. (“Motus”) will receive shares of the Company’s common stock in consideration for shares and/or warrants
of Motus held by them at the effective time of the Share Exchange Transaction as contemplated by the Share Exchange Agreement,
as more fully described in the Memorandum (as defined below). This Subscription Agreement (this “Subscription Agreement”)
is one in a series of similar subscription agreements (collectively, the “Subscription Agreements”) entered into pursuant
to the Offering.


 


2.
The Offering. This subscription is submitted to you in accordance with and subject to the terms and conditions described
in this Subscription Agreement and the Confidential Private Placement Memorandum of the Company dated December 1, 2016, as amended
or supplemented from time to time, including all attachments, schedules and exhibits thereto (the “Memorandum”), relating
to the offering (the “Offering”) by the Company of a minimum of 4,000,000 Units ($20,000,000) (“Minimum Offering
Amount”), and up to a maximum of 5,000,000 Units ($25,000,000) (“Maximum Offering Amount”). In the event the
Maximum Offering Amount is sold, the Placement Agent (as defined below) and the Company shall have the right to sell up to an
additional 1,000,000 Units ($5,000,000) to cover over-allotments. Aegis Capital Corp. has been engaged as exclusive placement
agent in connection with the Offering (“Aegis” or the “Placement Agent”). The terms of the Offering are
more completely described in the Memorandum and such terms are incorporated herein in their entirety.


 


3.
Deliveries and Payment; Escrow of Funds. Simultaneously with the execution hereof, the Purchaser shall: (a) deliver to
Aegis, in accordance with the Subscription Instructions attached hereto, (i) one (1) completed and executed omnibus signature
page to this Subscription Agreement and the Registration Rights Agreement (page 14), (ii) a completed Accredited Investor Certification
(pages 15-16), (iii) a completed Investor Profile (page 17), (iv) one (1) completed and executed Tax Certification for U.S. Persons
or Non-U.S. Persons, as applicable (beginning on page 19) and (v) one (1) completed and executed Selling Stockholder’s Questionnaire;
and (b) make a wire transfer payment to, “Signature Bank, Escrow Agent for Motus GI Holdings, Inc.” in the full amount
of the purchase price of the Units being subscribed for in the Offering. Wire transfer instructions are set forth on page 12 hereof
under the heading “To subscribe for Units in the private offering of Motus GI Holdings, Inc.” Such funds will be held
for the Purchaser’s benefit in a non-interest-bearing escrow account (the “Escrow Account”) until the earliest
to occur of (a) a closing of the sale of the Minimum Offering Amount or more (the “First Closing”), (b) the rejection
of such subscription, or (c) the termination of the Offering by the Company, Motus or the Placement Agent. The Company, Motus
and the Placement Agent may continue to offer and sell the Units and conduct additional closings for the sale of additional Units
after the First Closing and until the termination of the Offering.


 




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4.
Acceptance of Subscription. The Purchaser understands and agrees that the Company and Motus, in their sole discretion,
reserve the right to accept or reject this or any other subscription for Units, in whole or in part, notwithstanding prior receipt
by the Purchaser of notice of acceptance of this subscription. In furtherance of the foregoing, the Company and Motus shall have
the right to require potential subscribers to supply additional information and execute additional documents in a satisfactory
manner, which determination shall be at the sole discretion of the Company and Motus, prior to the acceptance of this Subscription
Agreement. The Company shall have no obligation hereunder until the Company shall execute and deliver to the Purchaser an executed
copy of this Subscription Agreement. If this subscription is rejected in whole, the Offering of Units is terminated or the Minimum
Offering Amount is not raised, all funds received from the Purchaser will be returned without interest or offset, and this Subscription
Agreement shall thereafter be of no further force or effect. If this subscription is rejected in part, the funds for the rejected
portion of this subscription will be returned without interest or offset, and this Subscription Agreement will continue in full
force and effect to the extent this subscription was accepted.


 


5.
Representations and Warranties.


 


The
Purchaser hereby acknowledges, represents, warrants, and agrees as follows:


 


(a)
None of the shares of Common Stock, Series A Stock or shares of Common Stock underlying the Series A Stock (the “Underlying
Common Stock”) offered pursuant to the Memorandum are registered under the Securities Act of 1933, as amended (the “Securities
Act”), or any state securities laws. The Purchaser understands that the offering and sale of the Units is intended to be
exempt from registration under the Securities Act, by virtue of Section 4(a)(2) thereof and the provisions of Regulation D (“Regulation
D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”) thereunder, based, in
part, upon the representations, warranties and agreements of the Purchaser contained in this Subscription Agreement;


 


(b)
Prior to the execution of this Subscription Agreement, the Purchaser and the Purchaser’s attorney, accountant, purchaser
representative and/or tax adviser, if any (collectively, the “Advisers”), have received the Memorandum and all other
documents requested by the Purchaser, have carefully reviewed them and understand the information contained therein;


 




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(c)
Neither the SEC nor any state securities commission or other regulatory authority has approved the Units, the Common Stock, the
Underlying Common Stock or the Series A Stock, or passed upon or endorsed the merits of the Offering or confirmed the accuracy
or determined the adequacy of the Memorandum. The Memorandum has not been reviewed by any federal, state or other regulatory authority;


 


(d)
All documents, records, and books pertaining to the investment in the Units (including, without limitation, the Memorandum) have
been made available for inspection by such Purchaser and its Advisers, if any;


 


(e)
The Purchaser and its Advisers, if any, have had a reasonable opportunity to ask questions of and receive answers from a person
or persons acting on behalf of the Company concerning the offering of the Units and the business, financial condition and results
of operations of the Company and Motus, and all such questions have been answered to the full satisfaction of the Purchaser and
its Advisers, if any;


 


(f)
In evaluating the suitability of an investment in the Company, the Purchaser has not relied upon any representation or information
(oral or written) other than as stated in the Memorandum.


 


(g)
The Purchaser is unaware of, is in no way relying on, and did not become aware of the Offering of the Units through or as a result
of, any form of general solicitation or general advertising including, without limitation, any article, notice, advertisement
or other communication published in any newspaper, magazine or similar media or broadcast over television, radio or the Internet
(including, without limitation, internet “blogs,” bulletin boards, discussion groups and social networking sites)
in connection with the Offering and sale of the Units and is not subscribing for the Units and did not become aware of the Offering
of the Units through or as a result of any seminar or meeting to which the Purchaser was invited by, or any solicitation of a
subscription by, a person not previously known to the Purchaser in connection with investments in securities generally;


 


(h)
The Purchaser has taken no action that would give rise to any claim by any person for brokerage commissions, finders’ fees
or the like relating to this Subscription Agreement or the transactions contemplated hereby (other than commissions to be paid
by the Company to the Placement Agent or as otherwise described in the Memorandum);


 


(i)
The Purchaser, together with its Advisers, if any, has such knowledge and experience in financial, tax, and business matters,
and, in particular, investments in securities, so as to enable it to utilize the information made available to it in connection
with the Offering to evaluate the merits and risks of an investment in the Units and the Company and to make an informed investment
decision with respect thereto;


 


(j)
The Purchaser is not relying on the Company, Motus, the Placement Agent or any of their respective employees or agents with respect
to the legal, tax, economic and related considerations of an investment in the Units, and the Purchaser has relied on the advice
of, or has consulted with, only its own Advisers;


 




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(k)
The Purchaser is acquiring the Units solely for such Purchaser’s own account for investment purposes only and not with a
view to or intent of resale or distribution thereof, in whole or in part. The Purchaser has no agreement or arrangement, formal
or informal, with any person to sell or transfer all or any part of the Units, the shares of Common Stock, the Underlying Common
Stock or the Series A Stock, and the Purchaser has no plans to enter into any such agreement or arrangement.


 


(l)
The Purchaser must bear the substantial economic risks of the investment in the Units indefinitely because none of the securities
included in the Units may be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act
and applicable state securities laws or an exemption from such registration is available. Legends shall be placed on the securities
included in the Units to the effect that they have not been registered under the Securities Act or applicable state securities
laws and appropriate notations thereof will be made in the Company’s stock books. Stop transfer instructions will be placed
with the transfer agent of the Units. The Company has agreed that purchasers of the Units will have, with respect to the shares
of Common Stock and the Underlying Common Stock, the registration rights described in the Registration Rights Agreement. Notwithstanding
such registration rights, there can be no assurance that there will be any market for resale of the Units, the Common Stock, the
Underlying Common Stock or the Series A Stock, nor can there be any assurance that such securities will be freely transferable
at any time in the foreseeable future.


 


(m)
The Purchaser has adequate means of providing for such Purchaser’s current financial needs and foreseeable contingencies
and has no need for liquidity from its investment in the Units for an indefinite period of time;


 


(n)
The Purchaser is aware that an investment in the Units is high risk, involving a number of very significant risks and has carefully
read and considered the matters set forth under the caption “Risk Factors” in the Memorandum, and, in particular,
acknowledges that Motus has a limited operating history, significant operating losses since inception, no revenues from operations
to date, limited assets and is engaged in a highly competitive business;


 


(o)
The Purchaser meets the requirements of at least one of the suitability standards for an “accredited investor” as
that term is defined in Regulation D and as set forth on the Accredited Investor Certification contained herein;


 


(p)
The Purchaser (i) if a natural person, represents that the Purchaser has reached the age of 21 and has full power and authority
to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions
hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock
company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose
of acquiring the Units, such entity is duly organized, validly existing and in good standing under the laws of the state of its
organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of
state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this
Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and
to purchase and hold the securities constituting the Units, the execution and delivery of this Subscription Agreement has been
duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity
and is a legal, valid and binding obligation of such entity; or (iii) if executing this Subscription Agreement in a representative
or fiduciary capacity, represents that it has full power and authority to execute and deliver this Subscription Agreement in such
capacity and on behalf of the subscribing individual, ward, partnership, trust, estate, corporation, or limited liability company
or partnership, or other entity for whom the Purchaser is executing this Subscription Agreement, and such individual, partnership,
ward, trust, estate, corporation, or limited liability company or partnership, or other entity has full right and power to perform
pursuant to this Subscription Agreement and make an investment in the Company, and represents that this Subscription Agreement
constitutes a legal, valid and binding obligation of such entity. The execution and delivery of this Subscription Agreement will
not violate or be in conflict with any order, judgment, injunction, agreement or controlling document to which the Purchaser is
a party or by which it is bound;


 




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(q)
The Purchaser and the Advisers, if any, have had the opportunity to obtain any additional information, to the extent the Company
and/or Motus have such information in its possession or could acquire it without unreasonable effort or expense, necessary to
verify the accuracy of the information contained in the Memorandum and all documents received or reviewed in connection with the
purchase of the Units and have had the opportunity to have representatives of the Company and Motus provide them with such additional
information regarding the terms and conditions of this particular investment and the financial condition, results of operations,
business of the Company and Motus deemed relevant by the Purchaser or the Advisers, if any, and all such requested information,
to the extent the Company or Motus had such information in their possession or could acquire it without unreasonable effort or
expense, has been provided to the full satisfaction of the Purchaser and the Advisers, if any;


 


(r)
Any information which the Purchaser has heretofore furnished or is furnishing herewith to the Company, Motus or the Placement
Agent is complete and accurate and may be relied upon by the Company, Motus and the Placement Agent in determining the availability
of an exemption from registration under federal and state securities laws in connection with the offering of securities as described
in the Memorandum. The Purchaser further represents and warrants that it will notify and supply corrective information to the
Company, Motus and the Placement Agent immediately upon the occurrence of any change therein occurring prior to the Company’s
issuance of the securities contained in the Units;


 


(s)
The Purchaser has significant prior investment experience, including investment in non-listed and non-registered securities. The
Purchaser is knowledgeable about investment considerations in development-stage companies with limited operating histories. The
Purchaser has a sufficient net worth to sustain a loss of its entire investment in the Company in the event such a loss should
occur. The Purchaser’s overall commitment to investments which are not readily marketable is not excessive in view of the
Purchaser’s net worth and financial circumstances and the purchase of the Units will not cause such commitment to become
excessive. The investment is a suitable one for the Purchaser;


 


(t)
The Purchaser is satisfied that the Purchaser has received adequate information with respect to all matters which it or the Advisers,
if any, consider material to its decision to make this investment;


 




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(u)
The Purchaser acknowledges that any estimates or forward-looking statements or projections included in the Memorandum were prepared
by the Company and Motus in good faith but that the attainment of any such projections, estimates or forward-looking statements
cannot be guaranteed by the Company or Motus and should not be relied upon;


 


(v)
No oral or written representations have been made, or oral or written information furnished, to the Purchaser or the Advisers,
if any, in connection with the Offering which are in any way inconsistent with the information contained in the Memorandum;


 


(w)
Within five (5) days after receipt of a request from the Company, Motus or any Placement Agent, the Purchaser will provide such
information and deliver such documents as may reasonably be necessary to comply with any and all laws and ordinances to which
the Company, Motus or the Placement Agent is subject;


 


(x)
The Purchaser’s substantive relationship with either Placement Agent or subagent through which the Purchaser is subscribing
for Units predates such Placement Agent’s or such subagent’s contact with the Purchaser regarding an investment in
the Units;


 


(y)
THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS
AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. THE SECURITIES
ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER SAID
ACT AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. THE SECURITIES HAVE NOT BEEN RECOMMENDED, APPROVED OR DISAPPROVED
BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR ANY OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF
THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE MEMORANDUM OR
THIS SUBSCRIPTION AGREEMENT. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL;


 


(z)
In making an investment decision investors must rely on their own examination of the Company, Motus and the terms of the Offering,
including the merits and risks involved. The Purchaser should be aware that it will be required to bear the financial risks of
this investment for an indefinite period of time;


 


(aa)
(For ERISA plans only) The fiduciary of the ERISA plan (the “Plan”) represents that such fiduciary has been
informed of and understands the Company’s investment objectives, policies and strategies, and that the decision to invest
“plan assets” (as such term is defined in ERISA) in the Company is consistent with the provisions of ERISA that require
diversification of plan assets and impose other fiduciary responsibilities. The Purchaser fiduciary or Plan (a) is responsible
for the decision to invest in the Company; (b) is independent of the Company or any of its affiliates; (c) is qualified to make
such investment decision; and (d) in making such decision, the Purchaser fiduciary or Plan has not relied primarily on any advice
or recommendation of the Company or any of its affiliates;


 




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(bb)
The Purchaser should check the Office of Foreign Assets Control (“OFAC”) website at <http://www.treas.gov/ofac>
before making the following representations. The Purchaser represents that the amounts invested by it in the Company in the
Offering were not and are not directly or indirectly derived from activities that contravene federal, state or international laws
and regulations, including anti-money laundering laws and regulations. Federal regulations and Executive Orders administered by
OFAC prohibit, among other things, the engagement in transactions with, and the provision of services to, certain foreign countries,
territories, entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found
on the OFAC website at <http://www.treas.gov/ofac>. In addition, the programs administered by OFAC (the “OFAC Programs”)
prohibit dealing with individuals[1] or entities in certain countries regardless of whether such individuals or entities
appear on the OFAC lists;


 


(cc)
To the best of the Purchaser’s knowledge, none of: (1) the Purchaser; (2) any person controlling or controlled by the Purchaser;
(3) if the Purchaser is a privately-held entity, any person having a beneficial interest in the Purchaser; or (4) any person for
whom the Purchaser is acting as agent or nominee in connection with this investment is a country, territory, individual or entity
named on an OFAC list, or a person or entity prohibited under the OFAC Programs. Please be advised that the Company may not accept
any amounts from a prospective investor if such prospective investor cannot make the representation set forth in the preceding
paragraph. The Purchaser agrees to promptly notify the Company, Motus and the Placement Agent should the Purchaser become aware
of any change in the information set forth in these representations. The Purchaser understands and acknowledges that, by law,
the Company may be obligated to “freeze the account” of the Purchaser, either by prohibiting additional subscriptions
from the Purchaser, declining any redemption requests and/or segregating the assets in the account in compliance with governmental
regulations, and the Placement Agent may also be required to report such action and to disclose the Purchaser’s identity
to OFAC. The Purchaser further acknowledges that the Company may, by written notice to the Purchaser, suspend the redemption rights,
if any, of the Purchaser if the Company reasonably deems it necessary to do so to comply with anti-money laundering regulations
applicable to the Company and the Placement Agent or any of the Company’s other service providers. These individuals include
specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo
programs;


 


(dd)
To the best of the Purchaser’s knowledge, none of: (1) the Purchaser; (2) any person controlling or controlled by the Purchaser;
(3) if the Purchaser is a privately-held entity, any person having a beneficial interest in the Purchaser; or (4) any person for
whom the Purchaser is acting as agent or nominee in connection with this investment is a senior foreign political figure,[2]
or any immediate family[3] member or close associate[4] of a senior foreign political figure, as such
terms are defined in the footnotes below; and


 





 



1
These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject
to OFAC sanctions and embargo programs.


 


2
A “senior foreign political figure” is defined as a senior official in the executive, legislative, administrative,
military or judicial branches of a foreign government (whether elected or not), a senior official of a major foreign political
party, or a senior executive of a foreign government-owned corporation. In addition, a “senior foreign political figure”
includes any corporation, business or other entity that has been formed by, or for the benefit of, a senior foreign political
figure.


 




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(ee)
If the Purchaser is affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if the Purchaser receives
deposits from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Purchaser represents
and warrants to the Company that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country
in which the Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related
to its banking activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank
to conduct banking activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does
not have a physical presence in any country and that is not a regulated affiliate.


 


6.
Lockup. (A) The Purchaser hereby acknowledges and agrees to the contractual restriction on transfer that will be applicable
to the shares of Common Stock, the Underlying Common Stock and the Series A Stock as set forth in Section 3(f) of the Registration
Rights Agreement, whether or not it becomes a party to the Registration Rights Agreement.


 


(B)
Notwithstanding paragraph (A), if the Purchaser is an affiliate of the Company, Holdings or the Placement Agent (together an “Affiliate
Purchaser”), such Affiliate Purchaser acknowledges and agrees that he will not become a party to the Registration Rights
Agreement, and that he will be required to execute a Lock Up Agreement on terms to be provided to him.


 


7.
Indemnification. The Purchaser agrees to indemnify and hold harmless the Company, Motus, the Placement Agent (including
its selected dealers, if any), and their respective officers, directors, employees, agents, control persons and affiliates from
and against all losses, liabilities, claims, damages, costs, fees and expenses whatsoever (including, but not limited to, any
and all expenses incurred in investigating, preparing or defending against any litigation commenced or threatened) based upon
or arising out of any actual or alleged false acknowledgment, representation or warranty, or misrepresentation or omission to
state a material fact, or breach by the Purchaser of any covenant or agreement made by the Purchaser herein or in any other document
delivered in connection with this Subscription Agreement.


 


8.
Irrevocability; Binding Effect. The Purchaser hereby acknowledges and agrees that the subscription hereunder is irrevocable
by the Purchaser, except as required by applicable law, and that this Subscription Agreement shall survive the death or disability
of the Purchaser and shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators,
successors, legal representatives, and permitted assigns. If the Purchaser is more than one person, the obligations of the Purchaser
hereunder shall be joint and several and the agreements, representations, warranties, and acknowledgments herein shall be deemed
to be made by and be binding upon each such person and such person’s heirs, executors, administrators, successors, legal
representatives, and permitted assigns.


 





 






3
“Immediate family” of a senior foreign political figure typically includes the figure’s parents, siblings,
spouse, children and in-laws.


 


4
A “close associate” of a senior foreign political figure is a person who is widely and publicly known to maintain
an unusually close relationship with the senior foreign political figure, and includes a person who is in a position to conduct
substantial domestic and international financial transactions on behalf of the senior foreign political figure.


 




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9.
Modification. This Subscription Agreement shall not be modified or waived except by an instrument in writing signed by
the party against whom any such modification or waiver is sought.


 


10.
Immaterial Modifications to the Registration Rights Agreement. The Company may, at any time prior to the First Closing,
modify the Registration Rights Agreement if necessary to clarify any provision therein, without first providing notice or obtaining
prior consent of the Subscriber, if, and only if, such modification is not material in any respect.


 


11.
Notices. Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be
deemed effectively given: (a) upon personal delivery to the party notified, (b) when sent by confirmed email or facsimile if sent
during normal business hours of the recipient, or if not confirmed, then on the next business day, (c) five days after having
been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written verification of receipt. The Company and the Purchaser
hereby consent to the delivery of communications and notices to such parties at their respective address, email or facsimile number
set forth on the signature page hereto, or to such other address as such party shall have furnished in writing in accordance with
the provisions of this Section 11.


 


12.
Assignability. This Subscription Agreement and the rights, interests and obligations hereunder are not transferable or
assignable by the Purchaser and the transfer or assignment of the shares of Common Stock or the Series A Stock shall be made only
in accordance with all applicable laws.


 


13.
Applicable Law. This Subscription Agreement shall be governed by and construed in accordance with the laws of the State
of New York applicable to contracts to be wholly-performed within said State.


 


14.
Arbitration. The parties agree to submit all controversies to arbitration in accordance with the provisions set forth below
and understand that:


 


(a)
Arbitration is final and binding on the parties.


 


(b)
The parties are waiving their right to seek remedies in court, including the right to a jury trial.


 


(c)
Pre-arbitration discovery is generally more limited and different from court proceedings.


 


(d)
The arbitrator’s award is not required to include factual findings or legal reasoning and any party’s right to appeal
or to seek modification of rulings by arbitrators is strictly limited.


 


(e)
The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.


 


(f)
All controversies which may arise between the parties concerning this Subscription Agreement shall be determined by arbitration
pursuant to the rules then pertaining to the Financial Industry Regulatory Authority (“FINRA”) in New York City, New
York. Judgment on any award of any such arbitration may be entered in the Supreme Court of the State of New York or in any other
court having jurisdiction of the person or persons against whom such award is rendered. Any notice of such arbitration
or for the confirmation of any award in any arbitration shall be sufficient if given in accordance with the provisions of this
Agreement. The parties agree that the determination of the arbitrators shall be binding and conclusive upon them.


 




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15.
Blue Sky Qualification. The purchase of Units under this Subscription Agreement is expressly conditioned upon the exemption
from qualification of the offer and sale of the Units from applicable federal and state securities laws. The Company shall not
be required to qualify this transaction under the securities laws of any jurisdiction and, should qualification be necessary,
the Company shall be released from any and all obligations to maintain its offer, and may rescind any sale contracted, in the
jurisdiction.


 


16.
Use of Pronouns. All pronouns and any variations thereof used herein shall be deemed to refer to the masculine, feminine,
neuter, singular or plural as the identity of the person or persons referred to may require.


 


17.
Confidentiality. The Purchaser acknowledges and agrees that any information or data the Purchaser has acquired from or
about the Company or Motus, not otherwise properly in the public domain, was received in confidence. The Purchaser agrees not
to divulge, communicate or disclose, except as may be required by law or for the performance of this Agreement, or use to the
detriment of the Company or Motus or for the benefit of any other person or persons, or misuse in any way, any confidential information
of the Company or Motus, including any scientific, technical, trade or business secrets of the Company or Motus and any scientific,
technical, trade or business materials that are treated by the Company or Motus as confidential or proprietary, including, but
not limited to, ideas, discoveries, inventions, developments and improvements belonging to the Company or Motus and confidential
information obtained by or given to the Company or Motus about or belonging to third parties.


 


18.
Miscellaneous.


 


(a)
This Subscription Agreement, together with the Registration Rights Agreement, constitute the entire agreement between the Purchaser
and the Company with respect to the subject matter hereof and supersede all prior oral or written agreements and understandings,
if any, relating to the subject matter hereof. The terms and provisions of this Subscription Agreement may be waived, or consent
for the departure therefrom granted, only by a written document executed by the party entitled to the benefits of such terms or
provisions.


 


(b)
The representations and warranties of the Company and the Purchaser made in this Subscription Agreement shall survive the execution
and delivery hereof and delivery of the shares of Common Stock and Series A Stock contained in the Units.


 


(c)
Each of the parties hereto shall pay its own fees and expenses (including the fees of any attorneys, accountants, appraisers or
others engaged by such party) in connection with this Subscription Agreement and the transactions contemplated hereby whether
or not the transactions contemplated hereby are consummated.


 




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(d)
This Subscription Agreement may be executed in one or more counterparts each of which shall be deemed an original, but all of
which shall together constitute one and the same instrument.


 


(e)
Each provision of this Subscription Agreement shall be considered separable and, if for any reason any provision or provisions
hereof are determined to be invalid or contrary to applicable law, such invalidity or illegality shall not impair the operation
of or affect the remaining portions of this Subscription Agreement.


 


(f)
Paragraph titles are for descriptive purposes only and shall not control or alter the meaning of this Subscription Agreement as
set forth in the text.


 


(g)
The Purchaser understands and acknowledges that there may be multiple closings for this Offering.


 


19.
Omnibus Signature Page. This Subscription Agreement is intended to be read and construed in conjunction with the Registration
Rights Agreement pertaining to the issuance by the Company of the shares of Common Stock and Series A Stock to subscribers pursuant
to the Memorandum. Accordingly, pursuant to the terms and conditions of this Subscription Agreement and such related agreements
it is hereby agreed that the execution by the Purchaser of this Subscription Agreement, in the place set forth herein, shall constitute
agreement to be bound by the terms and conditions hereof and the terms and conditions of the Registration Rights Agreement, with
the same effect as if each of such separate but related agreement were separately signed.


 


20.
Book Entry Registration of the Shares. The Company will issue the Common Stock and Series A Stock (together, the “Shares”)
by registering the Shares in book entry form with the Company’s transfer agent in Investor’s name and the applicable
restrictions will be noted in the records of the Company’s transfer agent and in the book entry system, except for investments
made via custodian accounts such as Pensions and IRA’s in which case physical certificates evidencing the Shares will be
issued.


 


[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]


 




    	11



    	 



    

 


PRIVATE
PLACEMENT OFFERING OF


MOTUS
GI HOLDINGS, INC.


 


SUBSCRIPTION
INSTRUCTIONS


 


To
subscribe for Units in the private offering of Motus GI Holdings, Inc.:


 


	1.	Date
    and Fill in the dollar amount of Units being purchased and Complete and Sign the Omnibus Signature Page to the
    Subscription Agreement and the Registration Rights Agreement (page 14).
	 	 
	2.	Initial
    the Accredited Investor Certification page attached to the Subscription Agreement (page 15-16).
	 	 
	3.	Complete
    and return the Investor Profile (page 17).
	 	 
	4.	Complete
    and Sign the Tax Certification for U.S. Persons or Non-U.S. Persons, as applicable (beginning on page 19).
	 	 
	5.	Fax
    or e-mail all forms (except the Selling Stockholder Questionnaire noted in Item 7 below) to Tierney S. Picardal at 347-772-3121/Tierney@sternaegis.com
    and then send all signed original documents to:
	 	 
	6.	Please
    wire funds directly to the escrow account pursuant to the following instructions (unless other arrangements have been made);
    checks cannot be accepted:


 


Bank
Name: Signature Bank


Bank
Address: 950 Third Avenue, 9th Floor, New York, NY 10022, Attn: PCG# 311


ABA
Number:


Swift
Code (for US Dollars wired outside the USA): SIGNUS33


A/C
Name: Signature Bank, as Agent for Motus GI Holdings, Inc.


A/C
Number:





FBO: Investor Name____________ 


SSN/TIN_____________________ 


Address______________________ 




 


	7.	Complete
    and return the entire Stockholders Questionnaire (pages A-1 through A-20) by fax or email to Robert Bee, Esq. at: (973)-597-2400/RBee@lowenstein.com
    and then send all signed original documents to:


 


Lowenstein
Sandler LLP


65
Livingston Avenue


Roseland,
NJ 07068


Attn:
Robert Bee, Esq


 




    	12



    	 



    

 


ANTI
MONEY LAUNDERING REQUIREMENTS


 


	The
    USA PATRIOT Act	 	What
    is money laundering?	 	How
    big is the problem and why is it important?
	 	 	 	 	 
	The
                                         USA PATRIOT Act is designed to detect, deter, and punish terrorists in the United States
                                         and abroad. The Act imposes new anti-money laundering requirements on brokerage firms
                                         and financial institutions. Since April 24, 2002 all brokerage firms have been required
                                         to have new, comprehensive anti-money laundering programs.

         

        To
        help you understand these efforts, we want to provide you with some information about money laundering and the Placement
        Agent’s efforts to implement the USA PATRIOT Act.
	 	Money
    laundering is the process of disguising illegally obtained money so that the funds appear to come from legitimate sources
    or activities. Money laundering occurs in connection with a wide variety of crimes, including illegal arms sales, drug trafficking,
    robbery, fraud, racketeering, and terrorism.	 	The
    use of the U.S. financial system by criminals to facilitate terrorism or other crimes could well taint our financial markets.
    According to the U.S. State Department, one recent estimate puts the amount of worldwide money laundering activity at $1 trillion
    a year.


 


	What
    each Placement Agent is required to do to help eliminate money laundering?
	 
	 

        Under
        new rules required by the USA PATRIOT Act, the Placement Agent’s anti-money laundering program must designate a
        special compliance officer, set up employee training, conduct independent audits, and establish policies and procedures
        to detect and report suspicious transaction and ensure compliance with the new laws.
	 	 

        As
        part of the Placement Agent’s required program, it may ask you to provide various identification documents or other
        information. Until you provide the information or documents that the Placement Agent needs, it may not be able to effect
        any transactions for you.



 




    	13



    	 



    

 


Motus
GI Holdings, Inc.


OMNIBUS
SIGNATURE PAGE TO THE


SUBSCRIPTION
AGREEMENT


AND
REGISTRATION RIGHTS AGREEMENT


 


Subscriber
hereby elects to subscribe under the Subscription Agreement for a total of $_________ of Units at a price of $5.00 per Unit (NOTE:
to be completed by subscriber) and, by execution and delivery hereof (return one (1) original), Subscriber hereby executes the
Subscription Agreement and agrees to be bound by the terms and conditions of the Subscription Agreement and the Registration Rights
Agreement.


 


If
the Purchaser is an INDIVIDUAL, and if purchased as JOINT TENANTS, as TENANTS IN COMMON, or as COMMUNITY PROPERTY:


 


	 	 	 
	Print
    Name(s)	 	Social
    Security Number(s)
	 	 	 
	 	 	 
	Signature(s)
    of Subscriber(s)	 	Signature
	 	 	 
	 	 	 
	Date	 	Address


 


If
the Purchaser is a PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY, IRA or TRUST:


 


	 	 	 
	Name
    of Entity	 	Federal
    Taxpayer
	 	 	Identification
    Number
	 	 	 
	By:	 	 	
	Name:	 	 	State
    of Organization
	Title:	 	 	 
	 	 	 
	 	 	 
	Date	 	Address
	 	 	 
	 	 	 
	Fax
    Number	 	Email
    Address


 


	Motus
    GI Holdings, Inc.	 	AEGIS
    CAPITAL CORP.
	 	 	 	 	 
	By:	 	 	By:	 
	 	Authorized
    Officer	 	 	Authorized
    Officer
	 	 	 	 	 
	Motus
    GI Medical Technology Ltd. 	 	 	 
	 	 	 	 	 
	By:
    	 	 	 	 
	 	Authorized
    Officer	 	 	 


 




    	14



    	 



    

 


Motus
GI Holdings, Inc.


ACCREDITED
INVESTOR CERTIFICATION


 


For
Individual Investors Only


(all
Individual Investors must INITIAL where appropriate):


 


	Initial
    _______ 	I
    have an individual net worth, or joint net worth with my spouse, as of the date hereof in excess of $1 million. For purposes
    of calculating net worth under this category, (i) the undersigned’s primary residence shall not be included as an asset,
    (ii) indebtedness that is secured by the undersigned’s primary residence, up to the estimated fair market value of the
    primary residence at the time of the sale of securities, shall not be included as a liability, (iii) to the extent that the
    indebtedness that is secured by the primary residence is in excess of the fair market value of the primary residence, the
    excess amount shall be included as a liability, and (iv) if the amount of outstanding indebtedness that is secured by the
    primary residence exceeds the amount outstanding 60 days prior to the execution of this Subscription Agreement, other than
    as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability.
	 	 
	Initial
    _______	I
    have had an annual gross income for the past two years of at least $200,000 (or $300,000 jointly with my spouse) and expect
    my income (or joint income, as appropriate) to reach the same level in the current year.
	 	 
	Initial
    _______	I
    am a director or executive officer of Motus GI Holdings, Inc.


 


For
Non-Individual Investors


(all
Non-Individual Investors must INITIAL where appropriate):


 


	Initial
    _______	The
    investor certifies that it is a partnership, corporation, limited liability company or business trust that is 100% owned by
    persons who meet at least one of the criteria for Individual Investors set forth above. 
	 	 
	Initial
    _______	The
    investor certifies that it is a partnership, corporation, limited liability company or any organization described in Section
    501(c)(3) of the Internal Revenue Code, Massachusetts or similar business trust that has total assets of at least $5 million
    and was not formed for the purpose of investing the Company.
	 	 
	Initial
    _______	The
    investor certifies that it is an employee benefit plan within the meaning of the Employee Retirement Income Security Act of
    1974, whose investment decision is made by a plan fiduciary (as defined in ERISA §3(21)) that is a bank, savings and
    loan association, insurance company or registered investment adviser.
	 	 
	Initial
    _______	The
    investor certifies that it is an employee benefit plan whose total assets exceed $5,000,000 as of the date of this Agreement.


 




    	15



    	 



    

 


	Initial
    _______	The
    undersigned certifies that it is a self-directed employee benefit plan whose investment decisions are made solely by persons
    who meet either of the criteria for Individual Investors.
	 	 
	Initial
    _______	The
    investor certifies that it is a U.S. bank, U.S. savings and loan association or other similar U.S. institution acting in its
    individual or fiduciary capacity.
	 	 
	Initial
    _______	The
    undersigned certifies that it is a broker-dealer registered pursuant to §15 of the Securities Exchange Act of 1934.
	 	 
	Initial
    _______	The
    investor certifies that it is an organization described in §501(c)(3) of the Internal Revenue Code with total assets
    exceeding $5,000,000 and not formed for the specific purpose of investing in the Company.
	 	 
	Initial
    _______	The
    investor certifies that it is a trust with total assets of at least $5,000,000, not formed for the specific purpose of investing
    in the Company, and whose purchase is directed by a person with such knowledge and experience in financial and business matters
    that he is capable of evaluating the merits and risks of the prospective investment.
	 	 
	Initial
    _______	The
    investor certifies that it is a plan established and maintained by a state or its political subdivisions, or any agency or
    instrumentality thereof, for the benefit of its employees, and which has total assets in excess of $5,000,000.
	 	 
	Initial
    _______	The
    investor certifies that it is an insurance company as defined in §2(13) of the Securities Act, or a registered investment
    company.
	 	 
	Initial
    _______	An
    investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section
    2(a)(48) of that Act.
	 	 
	Initial
    _______	A
    Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small
    Business Investment Act of 1958.
	 	 
	Initial
    _______	A
    private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.


 




    	16



    	 



    

 


Motus
GI Holdings, Inc.


Investor
Profile (Must be completed by Investor)


 


Section
A - Personal Investor Information


 


For
All Purchasers


 


Certificate
Title: ______________________________________________________________________________


Individual(s)
executing this subscription: __________________________________________________________


Social
Security Number(s) / Entity Federal I.D. Number: ______________________________________________


Date(s)
of Birth: ______________ 


Marital
Status: ______________


Years
Investment Experience: ______________ 


Aegis
Capital Account Executive or Outside Broker/Dealer: ______________/ Aegis Rep 3-Digit I.D.______


Aegis
Acct #_________________


Check
if you are a FINRA member or affiliate of a FINRA member firm: ____


Check
Investment Objective(s) (See definitions on following page): ____Preservation of Capital ____Income


____Capital
Appreciation ____Trading Profits ____Speculation


____Other
(please specify)


The
source of funds for this investment is my personal or my entity’s assets _____ Yes _____ No


For
Purchasers as Individual or as Joint Tenants, Tenants in Common, and Community Property 


Annual
Income(s): ___________________ 


Liquid
Net Worth(s): _________________


Net
Worth(s) (excluding value of primary residence): ________________


Select
Tax Bracket(s): ____ 15% or below ____ 25% - 27.5% ____ Over 27.5%


 


For
All Purchasers, by the Primary Contact


 


Home
Street Address: ______________________________________________________________________


Home
City, State & Zip Code: _______________________________________________________________


Home
Phone: ___________________ Home Fax: _________________Home Email: ____________________


 


Employer:
___________________________________


Type
of Business: _____________________________


Employer
Street Address: ___________________________________________________________________


Employer
City, State & Zip Code: ____________________________________________________________


Bus.
Phone: _____________________Bus. Fax: ___________________Bus. Email: ____________________


 


For
All Purchasers


 


If
you are a United States citizen, please list the number and jurisdiction of issuance of any other government-issued
document evidencing residence and bearing a photograph or similar safeguard (such as a driver’s license or passport), and
provide a photocopy of each of the documents you have listed.


 


If
you are NOT a United States citizen, for each jurisdiction of which you are a citizen or in which
you work or reside, please list (i) your passport number and country of issuance or (ii) alien identification card number AND
(iii) number and country of issuance of any other government-issued document evidencing nationality or residence and bearing
a photograph or similar safeguard, and provide a photocopy of each of these documents you have listed. These photocopies must
be certified by a lawyer as to authenticity.


 


Government-Issued
Identification Document Number(s) and Jurisdiction(s):___________________________


 


Please
provide a legible photocopy of your Identification Document(s) along with your subscription


 


Section
B – Securities Delivery Instructions


 


____
Please deliver securities to the Employer Address listed in Section A.


____
Please deliver securities to the Home Address listed in Section A.


____
Please deliver securities to the following address: _____________________________________________


 


Section
C –Wire Transfer Instructions


 


____
I will wire funds from my outside account according to the “Subscription Instructions” Page.


____
I will wire funds from my Aegis Capital Account.


____The
funds for this investment are rolled over, tax deferred from __________ within the allowed 60 day window.


 


	 	 	 
	Investor
    Signature	 	Date
	 	 	 
	 	 	 
	Investor
    Signature	 	Date


 




    	17



    	 



    

 


Investment
Objectives: The typical investment listed with each objective are only some examples of the kinds of investments that have
historically been consistent with the listed objectives. However, neither Motus GI Holdings, Inc., Motus GI Medical Technology
Ltd., nor Aegis Capital Corp. can assure that any investment will achieve your intended objective. You must make your own investment
decisions and determine for yourself if the investments you select are appropriate and consistent with your investment objectives.


 


Neither
Motus GI Holdings, Inc., Motus GI Medical Technology Ltd., nor Aegis Capital Corp. assumes responsibility to you for determining
if the investments you selected are suitable for you.


 


Preservation
of Capital: An investment objective of Preservation of Capital indicates you seek to maintain the principal value of
your investments and are interested in investments that have historically demonstrated a very low degree of risk of loss of principal
value. Some examples of typical investments might include money market funds and high quality, short-term fixed income products.


 


Income:
An investment objective of Income indicates you seek to generate income from investments and are interested in investments
that have historically demonstrated a low degree of risk of loss of principal value. Some examples of typical investments might
include high quality, short and medium-term fixed income products, short-term bond funds and covered call options.


 


Capital
Appreciation: An investment objective of Capital Appreciation indicates you seek to grow the principal value of your
investments over time and are willing to invest in securities that have historically demonstrated a moderate to above average
degree of risk of loss of principal value to pursue this objective. Some examples of typical investments might include common
stocks, lower quality, medium-term fixed income products, equity mutual funds and index funds.


 


Trading
Profits: An investment objective of Trading Profits indicates you seek to take advantage of short-term trading opportunities,
which may involve establishing and liquidating positions quickly. Some examples of typical investments might include short-term
purchases and sales of volatile or low priced common stocks, put or call options, spreads, straddles and/or combinations on equities
or indexes. This is a high-risk strategy.


 


Speculation:
An investment objective of Speculation indicates you seek a significant increase in the principal value of your investments
and are willing to accept a corresponding greater degree of risk by investing in securities that have historically demonstrated
a high degree of risk of loss of principal value to pursue this objective. Some examples of typical investments might include
lower quality, long-term fixed income products, initial public offerings, volatile or low priced common stocks, the purchase or
sale of put or call options, spreads, straddles and/or combinations on equities or indexes, and the use of short-term or day trading
strategies.


 


Other:
Please specify.


 




    	18