Document:

EXHIBIT 10.26

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (this “Agreement”) is dated as of March 2, 2014 and is entered into by and among Shay Ashkenazy
(the “Executive”), Nano Vibronix, Inc., a Delaware corporation (the “Company”),
and its wholly-owned Israeli subsidiary, NanoVibronix Ltd., (“NanoVibronix”), a company organized under
the laws of the State of Israel. The Company and NanoVibronix are referred to herein collectively as the “Companies.”
The Companies and the Executive shall be referred to herein as the “Parties.”

 

RECITALS

 

Whereas,
the Company desires to employ the Executive through NanoVibronix as the Chief Financial Officer (“CFO”)
of both companies, and the Executive desires to be employed by the Companies as their CFO;

 

Whereas,
the Parties desire to set forth in writing the terms and conditions of their agreement and understandings with respect to the employment
of the Executive as CFO; and

 

Whereas,
the Company and NanoVibronix hereby employ the Executive, and the Executive hereby accepts employment with the Company and NanoVibronix
for the period and upon the terms and conditions contained in this Agreement.

 

Now,
Therefore, in consideration of the mutual promises and agreements contained herein, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Parties hereby agree as follows:

 

ARTICLE I.

Services
to be Provided by Executive

 

A.                
Position and Responsibilities. The Executive shall serve the Company and NanoVibronix in the capacity of CFO
and in such other capacities as the Company’s Chief Executive Officer (“CEO”) or the Board of Directors
of the Company and NanoVibronix (collectively, the “Board”) may from time to time request. The Executive
shall fulfill all CEO and Board instructions diligently and in a timely manner. The Executive also agrees to serve, if elected,
as an officer or director of the Company, NanoVibronix or any other direct or indirect subsidiary of the Companies, in each such
case at no compensation in addition to that provided for in this Agreement. The Executive acknowledges and agrees that his duties
shall include travel outside of Israel as may be necessary in order to fulfill his duties hereunder, as determined by the CEO in
his sole discretion. The Companies and the Executive confirm and agree that this Agreement is a personal employment contract and
that the relationship between the parties hereto shall not be subject to any general or special collective employment agreement
or any custom or practice of the Companies in respect of any of its other employees or contractors.

 

B.                
Performance. During the Executive’s employment with the Companies, the Executive shall devote on a full-time
basis all of the Executive’s time, energy, skill and reasonable best efforts to the performance of the Executive’s
duties hereunder in a manner that will faithfully and diligently further the business and interests of the Companies, and shall
exercise reasonable best efforts to perform the Executive’s duties in a diligent, trustworthy, good faith and business-like
manner, all for the purpose of advancing the business of the Companies. The Executive shall at all times act in a manner consistent
with the Executive’s position.

 

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C.                
Compliance. The Executive agrees to act in accordance with high business and ethical standards at all times.
The Executive shall comply with the policies, codes of conduct, codes of ethics, written manuals and lawful directives of the Companies.
The Executive shall comply with all laws of any jurisdiction in which the Companies do business. The Executive shall keep the CEO
promptly and fully informed of the Executive’s conduct in connection with the business affairs of the Companies. The Executive
shall report the Executive’s own wrongdoing and any wrongdoing or proposed wrongdoing of any other employee, director, or
contractor of the Companies or other person performing services on behalf of the Companies to the CEO immediately upon becoming
aware of it.

 

ARTICLE II.

Compensation
for SErvices

 

As compensation for
all services the Executive will perform under this Agreement, the Company will pay the Executive, and the Executive shall accept
as full compensation, the following:

 

A.                
Base Salary. Except as otherwise provided herein, during the Executive’s employment with the Companies,
the Company shall pay the Executive a gross monthly salary of forty thousand new Israeli shekels (NIS40,000) (NIS480,000 annualized),
(the “Base Salary”) for all services rendered by the Executive under this Agreement. The Base Salary
(after deduction of applicable taxes and like payments) for each month shall be payable within nine (9) calendar days of the end
of the calendar month for the preceding month, including contributions towards allocations to a manager’s insurance fund
and to all fringe and benefits and/or social contributions of any kind according to this Agreement.

 

As the Executive is
employed by the Companies in a senior managerial position involving a fiduciary relationship between the Executive and the Companies,
the Work and Rest Law (5711-1951), shall not apply to the Executive or to his employment with the Companies, and the Executive
shall not be entitled to any compensation in respect of such law. The Executive acknowledges that the compensation set for him
under this Agreement includes compensation that would otherwise be due to the Executive pursuant to such law. The provisions of
any collective bargaining agreement which exist or shall exist do not, and will not, apply to the employment of the Executive,
whether such agreement was signed among the government, the General Federation of Labor and Employers organizations, or any of
such parties, or whether signed by others, in relation to the field or fields of the business of the Company or NanoVibronix or
in relation to the position held by or the profession of the Executive.

 

The Base Salary and
all other benefits according to this Agreement shall be comprehensive and all-inclusive in that it shall be deemed to represent
the Executive’s entire compensation for his employment and work under this Agreement, except where it is otherwise specifically
set forth in this Agreement.

 

B.                
Bonus Plan. During the Executive’s employment with the Companies, the Executive may be eligible to participate
in a bonus plan, as the Board in its sole discretion, may from time to time establish.

 

C.                
IPO Bonus. The Company shall pay the Executive a lump sum cash bonus equal to ten thousand U.S. dollars (U.S.
$10,000), less applicable payroll deductions and tax withholdings, within five (5) business days of the closing date of the IPO,
provided that the Executive is still employed by any of the Companies on the closing date of the IPO.

 

D.                
Equity Grant. On the pricing date of the IPO (the “Date of Grant”), the Company
shall grant the Executive an option, pursuant to a separate award agreement and subject to the terms and conditions of the Company’s
equity plan then-in effect, to purchase such number of shares of the Company’s common stock equal to one percent (1%) of
the shares of common stock issued and outstanding on the Date of Grant (taking into account the number of shares that will be sold
in the IPO and issued in connection with the IPO) (the “Option Grant”) at an exercise price equal to
the public offering price in the IPO, which shall be the fair market value of the common stock on the date of grant. The Option
Grant, as defined below, will be under section 102 of the Israeli Income Tax Ordinance [NEW VERSION] 5721-1961 (capital gain tax
route), and for this purpose the Companies shall adopt an equity plan/an appendix to an existing equity plan for Israeli grantees,
to be filed with the Israeli Tax Authorities. The Option Grant shall vest in three equal installments on each of the first, second,
and third anniversary of the date of grant; provided that the Executive is employed by the Companies on the applicable vesting
date. Notwithstanding the foregoing, if the Companies (or the successor in interest thereto) terminate the Executive without “cause”
(as defined below) within the three (3) month period after a “change in control” (as such term is defined by the Company’s
equity plan pursuant to which the Option Grant was granted), then the Option Grant shall become 100% vested and exercisable on
date of the Executive’s termination of employment. For purposes of the Option Grant, “cause” shall mean (i) the
Executive’s commission of a dishonest or fraudulent act in connection with his employment with the Companies, or misappropriation
of the property of the Companies; (ii) the Executive’s conviction of, or plea of nolo contendere to, a felony or crime involving
dishonesty; (iii) the Executive’s inattention to duties, unsatisfactory performance, or failure to perform the Executive’s
duties hereunder; (iv) a substantial failure of the Executive to comply with the Companies’ policies; (v) a material and
willful breach of the Executive’s fiduciary duties in any material respect; (vi) the Executive’s failure to comply
in any material respect with any legal written directive of the Board; or (vii) any act or omission of the Executive which is of
substantial detriment to the Companies because of the Executive’s intentional failure to comply with any statute, rule or
regulation.

 

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E.                 
Company Automobile. The Company shall provide the Executive an automobile of the same class as a Mazda 3,
either purchased or rented by the Company, for the Executive’s use in connection with the performance of his duties hereunder
and for his reasonable personal use. The Company shall pay all maintenance, repair, and operating expenses attributable to the
reasonable use of such automobile. The Executive shall be liable for all traffic or parking fines or penalties assessed on such
automobile and shall reimburse the Companies for any such fines or penalties paid by the Companies, which amount the Company may
deduct from other compensation payable to the Executive under this Agreement. The Executive shall return the automobile to NanoVibronix
thirty (30) days from the end of employee-employer relations.

 

F.                 
Cellular Phone and Laptop. The Company shall provide the Executive with a cellular phone and laptop for the
Executive’s use in connection with the performance of his duties hereunder. The Executive shall return the cellular phone
and laptop to the Company upon the end of employee-employer relations.

 

G.                
Expenses. The Company agrees that, during the Executive's employment, it will reimburse the Executive for
out-of-pocket expenses reasonably incurred in connection with the Executive's performance of the Executive’s services hereunder,
upon the presentation by the Executive of an itemized accounting of such expenditures, with supporting receipts, provided that
the Executive submits such expenses for reimbursement within thirty (30) days of the date such expenses were incurred. The reimbursements
shall be in compliance with the Company’s expense reimbursement policies.

 

H.                
Vacation. The Executive shall be entitled to twenty two (22) paid vacation days for each calendar year, except
as otherwise required by law. Vacation days shall be taken at such times and intervals as shall be determined by the Executive,
subject to the reasonable business needs of the Companies.

 

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I.                   
Sick Leave. The Executive shall be entitled to the number of paid sick leave days as provided by applicable
law. Notwithstanding the aforesaid, the Executive shall be entitled to paid sick leave from the first day of sickness.

 

J.                  
Employee Benefits. The Executive shall be eligible to participate in any group health insurance plan, equity/equity-based
incentive compensation plan, retirement plan, disability plan, group life plan, and any other benefit or welfare program or policy
that is made generally available, from time to time, to other executive employees of the Companies, on a basis consistent with
such participation and subject to the terms of the plan documents, as such plans may be modified, amended, terminated, or replaced
from time to time by the Company, in its sole discretion.

 

K.                
Manager’s Insurance.

 

(i)                
During the term, the Company shall purchase a Manager’s Insurance Policy (the “Policy”)
for the benefit of the Executive. The Company’s contributions will be no less than 13-1/3% of the Base Salary, of which 8-1/3%
will be paid towards severance and 5% will be paid towards the pension savings component, and in addition, an amount required to
secure at least 75% of the Base Salary or in an amount up to 2.5% of the Base Salary, the lower of the two, towards disability
insurance, against a deduction from the Employee’s Base Salary equal to 5% of the Base Salary. The Executive shall be solely
responsible for any tax liability related to any contribution by the Company to the Policy that exceeds the highest contribution
exempted by the Israeli tax laws.

 

(ii)              
The amounts which the Executive is entitled to receive from the Policy accruing from disbursements paid by the Company towards
the Policy shall be in lieu of the severance pay portion and shall be credited against any obligation the Company may have to pay
severance pay under applicable law.

 

(iii)            
It is further agreed that such payment contribution made by the Company towards the Policy as described in this Article
II.K., shall be in place of any severance payment due to the Executive under any circumstances in which the Executive shall be
entitled to severance payment subject to the applicable law, including but not limited to the Severance Pay Law (1963), in accordance
with the provisions of the Order published pursuant to section 14 of the Severance Pay Law (1963), as amended and as shall be amended
from time to time, subject to any law or regulations (including without limitation, any restrictions on the permitted contributions
such as ceilings) (the “Order”). The Order as published up to the date of this Agreement is attached
to this Agreement as Appendix A. The Order is hereby adopted by the parties and forms an integral part of this Agreement.

 

(iv)            
 According to the provisions of the Order and without derogating from there, the Company waives any right it may have to
recover sums from its contributions, unless the Executive 's entitlement to severance pay has been denied in a judgment under sections
16 or 17 of the Severance Pay Law (1963), unless the Executive withdraws sums from the insurance fund otherwise than in the circumstances
of an “entitling event” as defined in the Order (i.e., demise, disability or retirement at the age of sixty (60) or
above).

 

L.                 
Recuperation Pay (Dmei Ha’vraa). The Executive shall be entitled to recuperation pay for the number
of days as provided by applicable law.

 

M.               
Advanced Training Fund (Keren Hishtalmut). The Company shall open and maintain an advanced training fund (the
“Training Fund”) designated by the Executive for the benefit of the Executive. During the Term of Employment,
the Company shall pay a sum equal to 7.5% of the Base Salary to the Training fund, and the Company shall deduct 2.5% from
the Base Salary to be paid on the Executive’s behalf to the Training Fund. Use of these funds shall be in accordance with
the by-laws of the Training Fund. The Executive acknowledges and understands that the Company’s contributions to the Training
Fund exceeding the highest amount recognized as tax free by the Israeli tax authorities shall be deemed income of the Executive
and shall be taxed accordingly, and all taxes and mandatory tax payments imposed on such additional income shall be exclusively
born by the Executive.

 

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N.                
D&O Insurance. During the Employment Term, the Companies shall maintain and provide the Executive with
coverage under a directors’ and officers’ liability policy at the Companies’ expense that is at least equivalent
to the coverage provided by the Companies to the active directors and active senior executives of the Companies.

 

O.                
Taxes. Any taxes imposed on the benefits granted to the Executive under this Article II or upon other
perquisites provided by the Company to the Executive, including, without limitation, the Executive’s use of (i) the automobile
purchased or rented by the Company or (ii) a cellular telephone, shall be paid solely by the Executive and such taxes may be withheld
by the Company from other compensation payable to the Executive under this Agreement.

 

ARTICLE III.

Term; Termination

 

A.                
Term of Employment. The term of the Executive’s employment under this Agreement shall begin on or before
April 1, 2014 (the “Effective Date”) and shall continue in effect until terminated by either party.
The Executive’s employment is not for any specific term, and is “at-will”, which means it can be terminated by
either party at any time, for any reason.

 

B.                 
Termination. Either party may terminate this Agreement at any time for any reason upon sixty (60) days written
notice (the “Notice Period”). The date of the Executive’s termination shall be the date stated
in the notice of termination but in no event earlier than sixty (60) days following the date of such notice. Should the Company
notify the Executive of the termination of this Agreement, the Company shall pay the Executive with respect to the Notice Period,
his Base Salary, Deferred Base Salary and all other earned and accrued benefits to which the Executive is entitled according to
this Agreement (the “Accrued Obligations”).

 

C.                
Survival. The Executive’s post-termination obligations in Article IV shall continue as provided
in this Agreement.

 

D.                
Advance Notice Law.   Other than as instructed in writing by the Company’s Chairman of the Board,
during the Notice Period, the Executive, if so requested by the Companies, shall continue to perform his duties, cooperate with
the Companies, and use his best efforts to assist in the integration into the Companies’ organization the person or persons
who will assume the Executive’s responsibilities.

 

ARTICLE IV.

RESTRICTIVE COVENANTS 

 

A.                
Confidentiality.

 

(i)                
Confidential Information. During the Executive’s employment with the Companies, the Companies shall
grant the Executive otherwise prohibited access to their trade secrets and confidential information which is not known to the Companies’
competitors or within the Companies’ industry generally, which was developed by the Companies over a long period of time
and/or at their substantial expense, and which is of great competitive value to the Companies, and access to the Companies’
customers and clients. For purposes of this Agreement, “Confidential Information” includes any trade
secrets or confidential or proprietary information of the Companies, including, but not limited to, the following: methods of operation,
products, inventions, services, processes, equipment, know-how, technology, technical data, policies, strategies, designs, formulas,
developmental or experimental work, improvements, discoveries, research, plans for research or future products and services, database
schemas or tables, software, development tools or techniques, training procedures, training techniques, training manuals, business
information, marketing and sales methods, plans and strategies, competitors, markets, market surveys, techniques, production processes,
infrastructure, business plans, distribution and installation plans, processes and strategies, methodologies, budgets, financial
data and information, customer and client information, prices and costs, fees, customer and client lists and profiles, employee,
customer and client nonpublic personal information, supplier lists, business records, product construction, product specifications,
audit processes, pricing strategies, business strategies, marketing and promotional practices, management methods and information,
plans, reports, recommendations and conclusions, information regarding the skills and compensation of employees and contractors
of the Companies, and other non-public business information disclosed to the Executive by the Companies, either directly or indirectly,
in writing, orally, or by drawings or observation. “Confidential Information” does not include, and there
shall be no obligation hereunder with respect to, information that (a) is generally available to the public on the date of this
Agreement; (b) was previously rightfully known by the Executive, unless provided to him by the Companies during the discussions
preceding his engagement hereunder; or (c) becomes generally available to the public other than as a result of a disclosure not
otherwise permissible hereunder.

 

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(ii)              
No Unauthorized Use or Disclosure. The Executive acknowledges and agrees that Confidential Information is
proprietary to and a trade secret of the Companies and, as such, is a special and unique asset of the Companies, and that any disclosure
or unauthorized use of any Confidential Information by the Executive may cause irreparable harm and loss to the Companies. The
Executive understands and acknowledges that the Confidential Information (a) has been developed by the Companies at significant
effort and expense and is sufficiently secret to derive economic value from not being generally known to other parties, and (b)
constitutes a protectable business interest of the Companies. The Executive acknowledges and agrees that the Companies own the
Confidential Information. The Executive agrees not to dispute, contest, or deny any such ownership rights either during or after
the Executive’s employment with the Companies. The Executive agrees to preserve and protect the confidentiality of all Confidential
Information. The Executive agrees that during the period of the Executive’s employment with the Companies and after his termination
from employment for any reason, the Executive shall not directly or indirectly, disclose to any unauthorized person or use for
the Executive’s own account any Confidential Information without the Companies’ consent. Throughout the Executive’s
employment with the Companies and thereafter: (a) the Executive shall hold all Confidential Information in the strictest confidence,
take reasonable precautions to prevent its inadvertent disclosure to any unauthorized person, and follow all Company policies protecting
the Confidential Information; and (b) the Executive shall not, directly or indirectly, utilize, disclose or make available to any
other person or entity, any of the Confidential Information, other than in the proper performance of the Executive’s duties.
Further, the Executive shall not, directly or indirectly, use the Companies’ Confidential Information to: (1) call upon,
solicit business from, attempt to conduct business with, conduct business with, interfere with or divert business away from any
customer, client, service provider, supplier or vendor of the Companies with whom or which the Companies conducted business; and/or
(2) recruit, solicit, hire or attempt to recruit, solicit, or hire, directly or by assisting others, any persons employed by the
Companies. If the Executive learns that any person or entity is taking or threatening to take any actions which would compromise
any Confidential Information, the Executive shall timely advise the Companies of all facts concerning such action or threatened
action. The Executive shall use all reasonable efforts to obligate all persons to whom any Confidential Information shall be disclosed
by the Executive hereunder to preserve and protect the confidentiality of such Confidential Information.

 

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(iii)            
Return of Property and Information.  Upon the termination of the Executive’s employment for any
reason, the Executive shall immediately return and deliver to the Companies any and all Confidential Information, software, devices,
cell phones, personal data assistants, credit cards, data, reports, proposals, lists, correspondence, materials, equipment, computers,
hard drives, papers, books, records, documents, memoranda, manuals, e-mail, electronic or magnetic recordings or data, including
all copies thereof, which belong to the Companies or relate to the Companies’ business and which are in the Executive’s
possession, custody or control, whether prepared by the Executive or others. If at any time after termination of the Executive’s
employment the Executive determines that the Executive has any Confidential Information in the Executive’s possession or
control, the Executive shall return to the Companies all such Confidential Information in the Executive’s possession or control,
including all copies and portions thereof as soon as possible.

 

B.                
Restrictive Covenants. In consideration for (i) the Companies’ promise to provide Confidential Information
to the Executive; (ii) the substantial economic investment made by the Companies in the Confidential Information and goodwill of
the Companies, and/or the business opportunities disclosed or entrusted to the Executive, (iii) access to the Companies’
customers and clients, and (iv) the Companies’ employment of the Executive pursuant to this Agreement and the compensation
and other benefits provided by the Companies to the Executive, to protect the Companies’ Confidential Information and business
goodwill of the Companies, the Executive agrees to the following restrictive covenants.

 

(i)                
Non-Competition. The Executive agrees that during the Restricted Period (defined below), other than in connection
with the Executive’s duties under this Agreement (including, without limitation, services to affiliates of the Companies),
the Executive shall not, and shall not use any Confidential Information to, without the prior written consent of the Companies,
directly or indirectly, either individually or as a principal, partner, stockholder, manager, agent, consultant, contractor, distributor,
employee, lender, investor, or as a director or officer of any corporation or association, or in any other manner or capacity whatsoever,
become employed by, control, manage, carry on, join, lend money for, operate, engage in, establish, perform services for, invest
in, solicit investors for, consult for, do business with or otherwise engage in any Competing Business (defined below) within the
Restricted Area (defined below). Notwithstanding the restrictions contained in this Article IV.B.(i), the Executive may
own an aggregate of not more than five percent (5%) of the outstanding stock of any class of any corporation engaged in a Competing
Business, if such stock is listed on a national securities exchange in the United States (or a comparable exchange in a foreign
jurisdiction) or regularly traded in the over-the-counter market by a member of a national securities exchange in the United States,
without violating the provisions of Article IV.B.(i); provided, however, that the Executive does not have the power, directly
or indirectly, to control or direct the management or affairs of any such corporation and is not involved in the management of
such corporation.

 

For purposes of this Agreement:

 

(a)               
“Restricted Period” means during the Executive’s employment with the Companies and for a
period of eighteen (18) months immediately following the date of the Executive’s termination from employment for any reason.

 

(b)              
As CFO of the Companies, the Executive has responsibility for the Companies’ operations throughout the United States
and Israel. Because the Companies shall do business throughout the United States and Israel, the “Restricted Area”
means (i) the United States; (ii) Israel; and (iii) any other geographic area(s) for which the Executive had any responsibility
or about which the Executive received Confidential Information at any time during the one (1)-year period before the end of the
Executive’s employment.

 

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(c)               
“Competing Business” means any business, individual, partnership, firm, corporation or other entity
that is competing or that is preparing to compete with any aspect of the Companies’ business, i.e., the development and commercialization
of noninvasive biological response-activating devices that target wound healing and pain therapy and any other business the Companies
conducted during the Executive’s employment with the Companies or prepared to conduct and is conducting during such eighteen
(18) month period.

 

(ii)              
Non-Solicitation. The Executive agrees that during the Restricted Period, other than in connection with the
Executive’s duties under this Agreement, the Executive shall not, and shall not use any Confidential Information to, directly
or indirectly, either as a principal, manager, agent, employee, consultant, officer, director, stockholder, partner, investor or
lender or in any other capacity, and whether personally or through other persons:

 

(a)               
Solicit business from, interfere with, induce, attempt to solicit business with, interfere with, induce or do business with
any actual or prospective customer, client, service provider, supplier or vendor of the Companies with whom the Companies did business
or who the Companies solicited within the preceding two (2) years, and who or which: (1) the Executive contacted, called on,
serviced or did business with during the Executive’s employment with the Companies; (2) the Executive learned of as a result
of the Executive’s employment with the Companies; or (3) about whom the Executive received Confidential Information. This
restriction applies only to business which is in the scope of services or products provided by the Companies or any affiliate thereof;
or

 

(b)              
Solicit, induce or attempt to solicit or induce, engage or hire, on behalf of the Executive or any other person or entity,
any person who is an employee or who was employed by the Companies within the preceding twelve (12) months or who is or was a consultant
of the Companies within the preceding twelve (12) months who specializes in the scope of services or products provided by the Companies
or any affiliate thereof.

 

(iii)            
Non-Disparagement. The Executive shall refrain, both during and after the Executive’s employment terminates,
from publishing any oral or written statements about the Companies or any of the Companies’ directors, managers, officers,
employees, consultants, agents or representatives that (a) are slanderous, libelous or defamatory; or (b) place the Companies or
any of their directors, managers, officers, employees, consultants, agents or representatives in a false light before the public.
A violation or threatened violation of this prohibition may be enjoined by the courts. The rights afforded to the Companies under
this provision are in addition to any and all rights and remedies otherwise afforded by law.

 

C.                
Works.

 

(i)                
Assignment of Work Product. For the purposes of this Agreement, the term “Work Product”
shall mean, collectively, all work product, information, inventions, original works of authorship, ideas, know-how, processes,
designs, computer programs, photographs, illustrations, developments, trade secrets and discoveries, including improvements thereto,
and all other intellectual property, including patents, trademarks, copyrights and trade secrets, that the Executive conceives,
creates, develops, makes, reduces to practice, or fixes in a tangible medium of expression, either alone or with others that (a)
relates in any manner to the previous, existing or significantly contemplated business, work, or investigations of the Companies;
(b) is or was suggested by, has resulted or will result from, or has arisen or will arise out of any work that the Executive has
done or may do for or on behalf of the Companies; (c) has resulted or will result from or has arisen or will arise out of any materials
or Confidential Information that may have been disclosed or otherwise made available to the Executive as a result of duties assigned
to the Executive by the Companies; or (d) has been or will be otherwise made through the significant use of the Companies’
time, information, facilities, or materials, even if conceived, created, developed, made, reduced to practice, or fixed during
other than working hours. Following the termination of the Executive’s employment for any reason, the Executive agrees that
to make full written disclosure to the Companies of all Work Product conceived, created, developed, made, reduced to practice,
or fixed in a tangible medium of expression during the period of the Executive’s employment with the Companies. The Executive
hereby assigns and shall be deemed to have assigned to the Companies or their designee, all of the Executive’s right, title,
and interest in and to any and all Work Product conceived, created, developed, made, reduced to practice, or fixed in a tangible
medium of expression during the period of the Executive’s employment with the Companies. The Executive further acknowledges
that all original works of authorship that have been or will be made or fixed in a tangible medium of expression by the Executive
(solely or jointly with others) within the scope of the Executive’s employment with the Companies that are protectable by
copyright are “Works Made for Hire,” as that term is defined in the United States Copyright Act. The Executive understands
and agrees that the decision whether or not to commercialize or market any Work Product is within the Companies’ sole discretion
and for the Companies’ sole benefit, and that no royalty will be due to the Executive as a result of the Companies’
efforts to commercialize or market any such Work Product.

 

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(ii)              
Maintenance of Records. The Executive agrees to keep and maintain adequate and current electronic records
of all Work Product made by the Executive (solely or jointly with others) during the term of the Executive’s employment with
the Companies. The records will be available to and remain the sole property of the Companies during the Executive’s employment
with the Companies and at all times thereafter.

 

(iii)            
Patent and Copyright Registrations. The Executive agrees to assist the Companies, or their designee, at the
Companies’ expense, in every proper way to secure the Companies’ rights in Work Product in any and all countries, including
the disclosure to the Companies of all pertinent information and data with respect thereto, the execution of all applications,
specifications, oaths, assignments, affidavits, and all other instruments which the Companies shall deem necessary in order to
apply for and obtain such rights and in order to assign and convey to the Companies, their successors, assigns, and nominees the
sole and exclusive rights, title and interest in and to such Work Product. The Executive further agrees that the Executive’s
obligation to execute or cause to be executed, when it is in the Executive’s power to do so, any such instrument or papers
shall continue after the termination of this Agreement. The Companies will reimburse the Executive for any reasonable documented
expenses incurred with respect to fulfilling his obligation under this section IV.C(iii).

 

D.                
Business Opportunities. The Executive assigns and agrees to assign without further compensation to the Companies
and their successors, assigns or designees, all of the Executive’s right, title and interest in and to all Business Opportunities
(defined below), and further acknowledges and agrees that all Business Opportunities constitute the exclusive property of the Companies.
The Executive shall present all Business Opportunities to the Board, and shall not exploit a Business Opportunity apart from the
Companies without the prior written approval of the Board. For purposes of this Agreement, “Business Opportunities”
means all business ideas, prospects, or proposals pertaining to any aspect of the Companies’ business, which includes, but
is not limited to, the development and commercialization of PainShieldTM, WondShieldTM, UroShieldTM,
NG-ShieldTM, patch based medical products, therapeutic ultrasound and catheter based products, and any other business
the Companies conducted, prepared to conduct, or significantly contemplated conducting during the Executive’s employment
with the Companies, which are developed by the Executive or originated by any third party and brought to the attention of the Executive,
together with information relating thereto. For the avoidance of doubt, this Article IV.D is not intended to limit or narrow
the Executive’s duties or obligations under federal or state law with respect to corporate opportunities.

 

    	Page 9

    	 

    

 

E.                 
Remedies. The Executive acknowledges that the restrictions contained in Article IV of this Agreement,
in view of the nature of the Companies’ business and the Executive’s position with the Companies, are reasonable and
necessary to protect the Companies’ legitimate business interests and that any violation of Article IV of this Agreement
may result in irreparable injury to the Companies. In the event of a breach by the Executive of Article IV of this Agreement,
then the Companies shall be entitled to a temporary restraining order and injunctive relief restraining the Executive from the
commission of any breach. Such remedies shall not be deemed the exclusive remedies for a breach or threatened breach of this Article
IV but shall be in addition to all remedies available at law or in equity, including the recovery of damages from the Executive,
the Executive’s agents, any future employer of the Executive, and any person that conspires or aids and abets the Executive
in a breach or threatened breach of this Agreement.

 

F.                 
Reasonableness. The Executive hereby represents to the Companies that the Executive has read and understands,
and agrees to be bound by, the terms of this Article IV. The Executive acknowledges that the geographic scope and duration
of the covenants contained in this Article IV are fair and reasonable in light of (i) the nature and wide geographic scope
of the operations of the Companies’ business; (ii) the Executive’s level of control over and contact with the business
in the Restricted Area; and (iii) the amount of compensation, trade secrets and Confidential Information that the Executive is
receiving in connection with the Executive’s employment by the Companies. It is the desire and intent of the Parties that
the provisions of Article IV be enforced to the fullest extent permitted under applicable law, whether now or hereafter
in effect and therefore, to the extent permitted by applicable law, the Executive and the Companies hereby waive any provision
of applicable law that would render any provision of Article IV invalid or unenforceable.

 

G.                
Reformation. The Companies and the Executive agree that the foregoing restrictions set forth in Article
IV are reasonable under the circumstances and that any breach of the covenants contained in Article IV may cause irreparable
injury to the Companies. The Executive understands that the foregoing restrictions may limit the Executive’s ability to engage
in certain businesses anywhere in or involving the Restricted Area during the Restricted Period, but acknowledges that the Executive
shall receive Confidential Information and trade secrets, as well as sufficiently high remuneration and other benefits as an employee
of the Companies to justify such restrictions. If any of the aforesaid restrictions are found by a court of competent jurisdiction
to be unreasonable, or overly broad as to geographic area or time, or otherwise unenforceable, the Parties intend for the restrictions
herein set forth to be modified by the court making such determination so as to be reasonable and enforceable and, as so modified,
to be fully enforced. By agreeing to this contractual modification prospectively at this time, the Companies and the Executive
intend to make this provision enforceable under the law or laws of all applicable jurisdictions so that the entire agreement not
to compete and this Agreement as prospectively modified shall remain in full force and effect and shall not be rendered void or
illegal.

 

H.                
No Previous Restrictive Agreements. The Executive represents that, except as disclosed in writing to the Companies,
the Executive is not bound by the terms of any agreement with any previous employer or other party to refrain from using or disclosing
any trade secret or confidential or proprietary information in the course of the Executive’s employment with the Companies
or to refrain from competing, directly or indirectly, with the business of such previous employer or any other party. The Executive
further represents that the Executive’s performance of all the terms of this Agreement and the Executive’s work duties
for the Companies do not and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired
by the Executive in confidence or in trust prior to the Executive’s employment with the Companies. The Executive shall not
disclose to the Companies or induce the Companies to use any confidential or proprietary information or material belonging to any
previous employer or others.

 

    	Page 10

    	 

    

 

ARTICLE V.

Miscellaneous Provisions

 

A.                
Governing Law. This Agreement shall be governed by and construed under the laws of the State of Israel. Venue
of any litigation arising from this Agreement or any disputes relating to the Executive’s employment shall exclusively be
in the Tel-Aviv Regional Labor Court. The Executive consents to personal jurisdiction of the Tel-Aviv Regional Labor Court for
any dispute relating to or arising out of this Agreement or the Executive’s employment, and the Executive agrees that the
Executive shall not challenge personal or subject matter jurisdiction in such courts.

 

B.                
Cooperation. After the termination of the Executive’s employment, the Executive agrees to cooperate
and provide reasonable assistance, at the request of the Companies, in the transitioning of the Executive’s job duties and
responsibilities, and any and all investigations or other legal, equitable or business matters or proceedings which involve any
matters for which the Executive worked on or had responsibility during the Executive’s employment with the Companies. The
Executive also agrees to be reasonably available to the Companies or their representatives to provide general advice or assistance
as requested by the Companies. This includes, but is not limited to, testifying (and preparing to testify) as a witness in any
proceeding or otherwise providing information or reasonable assistance to the Companies in connection with any investigation, claim
or suit, and cooperating with the Companies regarding any investigation, litigation, claims or other disputed items involving the
Companies that relate to matters within the knowledge or responsibility of the Executive. Specifically, the Executive agrees (i)
to meet with the Companies’ representatives, their counsel or other designees at reasonable times and places with respect
to any items within the scope of this provision; (ii) to provide truthful testimony regarding the same to any court, agency or
other adjudicatory body; (iii) to provide the Companies with immediate notice of contact or subpoena by any non-governmental adverse
party as to matters relating to the Companies; and (iv) to not voluntarily assist any such non-governmental adverse party or such
non-governmental adverse party’s representatives; provided, however, that the Companies shall reimburse the Executive for
all reasonable expenses incurred in providing the cooperation outlined in subsections (i) and (ii) above.

 

C.                
Headings. The paragraph headings contained in this Agreement are for convenience only and shall in no way
or manner be construed as a part of this Agreement.

 

D.                
Severability. In the event that any court of competent jurisdiction holds any provision in this Agreement
to be invalid, illegal or unenforceable in any respect, the remaining provisions shall not be affected or invalidated and shall
remain in full force and effect.

 

E.                 
Reformation. In the event any court of competent jurisdiction holds any restriction in this Agreement to be
unreasonable and/or unenforceable as written, the court may reform this Agreement to make it enforceable, and this Agreement shall
remain in full force and effect as reformed by the court.

 

F.                 
Entire Agreement. This Agreement constitutes the entire agreement between the Parties, and fully supersedes
any and all prior agreements, understanding or representations between the Parties pertaining to or concerning the subject matter
of this Agreement, including, without limitation, the Executive’s employment with the Companies. No oral statements or prior
written material not specifically incorporated in this Agreement shall be of any force and effect, and no changes in or additions
to this Agreement shall be recognized, unless incorporated in this Agreement by written amendment, such amendment to become effective
on the date stipulated in it. Any amendment to this Agreement must be signed by all parties to this Agreement. The Executive acknowledges
and represents that in executing this Agreement, the Executive did not rely on, has not relied on, and specifically disavows any
reliance on any communications, promises, statements, inducements, or representation(s), oral or written, by the Companies, except
as expressly contained in this Agreement. The Parties represent that they relied on their own judgment in entering into this Agreement.

 

    	Page 11

    	 

    

 

G.                
Waiver. No waiver of any breach of this Agreement shall be construed to be a waiver as to succeeding breaches.
The failure of either party to insist in any one or more instances upon performance of any terms or conditions of this Agreement
shall not be construed as a waiver of future performance of any such term, covenant or condition, but the obligations of either
party with respect thereto shall continue in full force and effect. The breach by one party to this Agreement shall not preclude
equitable relief or the obligations in Article IV.

 

H.                
Modification. The provisions of this Agreement may be amended, modified or waived only with the prior written
consent of the Companies and the Executive, and no course of conduct or failure or delay in enforcing the provisions of this Agreement
shall be construed as a waiver of such provisions or affect the validity, binding effect or enforceability of this Agreement or
any provision hereof.

 

I.                   
Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their
respective heirs, successors and permitted assigns. The Parties may not assign this Agreement to a third party. However, the Companies
may assign their rights, together with their obligations hereunder, to any affiliate and/or subsidiary of the Companies or any
successor thereto or any purchaser of substantially all of the assets of the Companies.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.
SIGNATURE PAGE FOLLOWS.]

 

    	Page 12

    	 

    

 

IN WITNESS WHEREOF,
the Companies and the Executive have caused this Agreement to be executed on the date first set forth above, to be effective as
of the Effective Date.

 

 

EXECUTIVE: 

 

 

/s/ Shay Ashkenazy                                

Shay Ashkenazy

 

COMPANY: 

 

Nano
Vibronix, INC.

 

	By:	/s/ Ophir Shahaf	 
	 	Name:  	Ophir Shahaf	 
	 	Title:  	CEO	 
	 	 	 
	 	 	 
	NANOVIBRONIX: 	 	 
	 	 	 
	NanoVibronix LTD.	 
	 	 	 
	 	 	 
	By:  	/s/ Ophir Shahaf	 
	 	Name:  	Ophir Shahaf	 
	 	Title: 	CEO	 

 

    	 

    	 

    

 

Appendix A 

General Order and Confirmation Regarding
Payments of Employers to Pension Funds and Insurance Funds instead of Severance Pay

 

Pursuant to the power granted to me under section 14 of the
Severance Pay Law 5723-1963 (“Law”) I hereby confirm that payments paid by an employer, commencing the date
hereof, to an employee’s comprehensive pension fund into a provident fund which is not an insurance fund, as defined in the
Income Tax Regulations (Registration and Management Rules of a Provident Fund) 5724-1964 (“Pension Fund”), or
to a Manager’s Insurance Fund that includes the possibility of an allowance or a combination of payments to an Allowance
Plan and to a plan which is not an Allowance Plan in an Insurance Fund (“Insurance Fund”), including payments
which the employer paid by combination of payments to a Pension Fund and to an Insurance Fund whether there exists a possibility
in the Insurance Fund to an allowance plan (“Employer Payments”), will replace the severance pay that the employee
is entitled to for the salary and period of which the payments were paid (“Exempt Wages”) if the following
conditions are satisfied:

 

(1)Employer Payments –

 

(A)for Pension Funds are not less than 14.33 % of the Exempt
Wages or 12% of the Exempt Wages, if the employer pays for his employee an additional payment on behalf of the severance pay completion
for a providence fund or Insurance Fund at the rate of 2.33% of the Exempt Wages. If an employer does not pay the additional 2.33%
on top of the 12%, then the payment will constitute only 72% of the Severance Pay.

 

(B)to the Insurance Fund are not less than one of the following:

 

(1)13.33% of the Exempt Wages if the employer pays the employee
additional payments to insure his monthly income in case of work disability, in a plan approved by the Supervisor of the Capital
Market, Insurance and Savings in the Finance Ministry, at the lower of, a rate required to insure 75% of the Exempt Wages or 2.5%
of the Exempt Wages (“Disability Payment”).

 

(2)11% of the Exempt Wages if the employer pays an additional
Disability Payment and in this case the Employer Payments will constitute only 72% of the employee’s severance pay; if, in
addition to the abovementioned sum, the employer pays 2.33% of the Exempt Wages for the purpose of Severance Pay completion to
providence fund or Insurance Funds, the Employer Payments will constitute 100% of the severance pay.

 

(2)A written agreement must be made between the employer
and employee no later than 3 months after the commencement of the Employer Payments that include –

 

(A)the agreement of the employee to the arrangement pursuant
to this confirmation which details the Employer Payments and the name of the Pension Fund or Insurance Fund; this agreement must
include a copy of this confirmation;

 

    	 

    	 

    

 

(B)an advanced waiver of the employer for any right that
he could have to have his payments refunded unless the employee’s right to severance pay is denied by judgment according
to sections 16 or 17 of the Law, and in case the employee withdrew monies from the Pension Fund or Insurance Fund not for an Entitling
Event; for this matter, Entitling Event or purpose means death, disablement or retirement at the age of 60 or over.

 

(3)This confirmation does not derogate from the employee’s
entitlement to severance pay according to the Law, Collective Agreement, Extension Order or personal employment agreement, for
any salary above the Exempt Wages.EXHIBIT 10.27

 

 

NANO VIBRONIX, INC.

 

2014 LONG-TERM INCENTIVE PLAN

 

The Nano Vibronix,
Inc. 2014 Long-Term Incentive Plan (the “Plan”) was adopted by the Board of Directors of Nano Vibronix,
Inc., a Delaware corporation (the “Company”), effective as of February 19, 2014, subject to approval
by the Company’s stockholders.

 

Article
1

PURPOSE

 

The purpose of the
Plan is to attract and retain the services of key Employees, key Contractors, and Outside Directors of the Company and its Subsidiaries
and to provide such persons with a proprietary interest in the Company through the granting of Incentive Stock Options, Nonqualified
Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Awards, Dividend Equivalent Rights,
and Other Awards, whether granted singly, or in combination, or in tandem, that will:

 

(a)increase
the interest of such persons in the Company’s welfare;

 

(b)furnish
an incentive to such persons to continue their services for the Company or its Subsidiaries; and

 

(c)provide
a means through which the Company may attract able persons as Employees, Contractors, and Outside Directors.

 

With respect to Reporting
Participants, the Plan and all transactions under the Plan are intended to comply with all applicable conditions of Rule 16b-3
promulgated under the Exchange Act. To the extent any provision of the Plan or action by the Committee fails to so comply, such
provision or action shall be deemed null and void ab initio, to the extent permitted by law and deemed advisable by the
Committee.

 

Article
2

DEFINITIONS

 

For the purpose of
the Plan, unless the context requires otherwise, the following terms shall have the meanings indicated:

 

2.1“Applicable
Law” means all legal requirements relating to the administration of equity incentive plans and the issuance and distribution
of shares of Common Stock, if any, under applicable corporate laws, applicable securities laws, the rules of any exchange or inter-dealer
quotation system upon which the Company’s securities are listed or quoted, the rules of any foreign jurisdiction applicable
to Incentives granted to residents therein, and any other applicable law, rule or restriction.

 

2.2“Award”
means the grant of any Incentive Stock Option, Nonqualified Stock Option, Restricted Stock, SAR, Restricted Stock Units, Performance
Award, Dividend Equivalent Right or Other Award, whether granted singly or in combination or in tandem (each individually referred
to herein as an “Incentive”).

 

2.3“Award
Agreement” means a written agreement between a Participant and the Company which sets out the terms of the grant
of an Award.

 

    	- 1 -

    	 

    

 

2.4“Award
Period” means the period set forth in the Award Agreement during which one or more Incentives granted under an Award
may be exercised.

 

2.5“Board”
means the board of directors of the Company.

 

2.6“Change
in Control” means the occurrence of the event set forth in any one of the following paragraphs, except as otherwise
provided herein:

 

(a)any
Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities
beneficially owned by such Person any securities acquired directly from the Company or its Affiliates) representing fifty percent
(50%) or more of the combined voting power of the Company’s then outstanding securities, excluding any Person who becomes
such a Beneficial Owner in connection with a transaction described in clause (i) of paragraph (c) below;

 

(b)the
following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on
the effective date of this Plan, constitute the Board and any new director (other than a director whose initial assumption of office
is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to
the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s
stockholders was approved or recommended by a vote of at least two-thirds (2/3rds) of the directors then still in office
who either were directors on the effective date of this Plan or whose appointment, election or nomination for election was previously
so approved or recommended;

 

(c)there
is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation,
other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior
to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities
of the surviving entity or any parent thereof) at least sixty percent (60%) of the combined voting power of the securities of the
Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger
or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes
the Beneficial Owner, directly or indirectly, of securities of the Company (not including the securities Beneficially Owned by
such Person any securities acquired directly from the Company or its Affiliates other than in connection with the acquisition by
the Company or its Affiliates of a business) representing thirty percent (30%) or more of the combined voting power of the Company’s
then outstanding securities; or

 

(d)the
stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement
for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition
by the Company of all or substantially all of the Company’s assets to an entity, at least sixty percent (60%) of the combined
voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as
their ownership of the Company immediately prior to such sale.

 

    	- 2 -

    	 

    

 

For purposes
hereof:

 

“Affiliate”
shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Exchange Act.

 

“Beneficial
Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

 

“Person”
shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof,
except that such term shall not include (i) the Company or any of its Subsidiaries, (ii) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant
to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially
the same proportions as their ownership of stock of the Company.

 

Notwithstanding the
foregoing provisions of this Section 2.6, if an Award issued under the Plan is subject to Section 409A of the Code, then
an event shall not constitute a Change in Control for purposes of such Award under the Plan unless such event also constitutes
a change in the Company’s ownership, its effective control or the ownership of a substantial portion of its assets within
the meaning of Section 409A of the Code.

 

2.7“Code”
means the United States Internal Revenue Code of 1986, as amended.

 

2.8“Committee”
means the committee appointed or designated by the Board to administer the Plan in accordance with Article 3 of this Plan.

 

2.9“Common
Stock” means the common stock, par value $0.001 per share, which the Company is currently authorized to issue or
may in the future be authorized to issue, or any securities into which or for which the common stock of the Company may be converted
or exchanged, as the case may be, pursuant to the terms of this Plan.

 

2.10“Company”
means Nano Vibronix, Inc., a Delaware corporation, and any successor entity.

 

2.11“Contractor”
means any natural person, who is not an Employee, rendering bona fide services to the Company or a Subsidiary, with compensation,
pursuant to a written independent contractor agreement between such person (or any entity employing such person) and the Company
or a Subsidiary, provided that such services are not rendered in connection with the offer or sale of securities in a capital raising
transaction and do not directly or indirectly promote or maintain a market for the Company’s securities.

 

2.12“Corporation”
means any entity that (i) is defined as a corporation under Section 7701 of the Code and (ii) is the Company or is in an unbroken
chain of corporations (other than the Company) beginning with the Company, if each of the corporations other than the last corporation
in the unbroken chain owns stock possessing a majority of the total combined voting power of all classes of stock in one of the
other corporations in the chain. For purposes of clause (ii) hereof, an entity shall be treated as a “corporation”
if it satisfies the definition of a corporation under Section 7701 of the Code.

 

    	- 3 -

    	 

    

 

2.13“Date
of Grant” means the effective date on which an Award is made to a Participant as set forth in the applicable Award
Agreement; provided, however, that solely for purposes of Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder, the Date of Grant of an Award shall be the date of stockholder approval of the Plan if such date is later than the
effective date of such Award as set forth in the Award Agreement.

 

2.14“Dividend
Equivalent Right” means the right of the holder thereof to receive credits based on the cash dividends that would
have been paid on the shares of Common Stock specified in the Award if such shares were held by the Participant to whom the Award
is made.

 

2.15“Employee”
means a common law employee (as defined in accordance with the Regulations and Revenue Rulings then applicable under Section 3401(c)
of the Code) of the Company or any Subsidiary of the Company; provided, however, in the case of individuals
whose employment status, by virtue of their employer or residence, is not determined under Section 3401(c) of the Code, “Employee”
shall mean an individual treated as an employee for local payroll tax or employment purposes by the applicable employer under Applicable
Law for the relevant period.

 

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

 

2.17“Executive
Officer” means an officer of the Company or a Subsidiary subject to Section 16 of the Exchange Act or a “covered
employee” as defined in Section 162(m)(3) of the Code.

 

2.18“Fair
Market Value” means, as of a particular date, (a) if the shares of Common Stock are listed on any established national
securities exchange, the closing sales price per share of Common Stock on the consolidated transaction reporting system for the
principal securities exchange for the Common Stock on that date, or, if there shall have been no such sale so reported on that
date, on the last preceding date on which such a sale was so reported; (b) if the shares of Common Stock are not so listed, but
are quoted on an automated quotation system, the closing sales price per share of Common Stock reported on the automated quotation
system on that date, or, if there shall have been no such sale so reported on that date, on the last preceding date on which such
a sale was so reported; (c) if the Common Stock is not so listed or quoted, the mean between the closing bid and asked price on
that date, or, if there are no quotations available for such date, on the last preceding date on which such quotations shall be
available, as reported by the OTC Bulletin Board operated by the Financial Industry Regulation Authority, Inc. or the OTC Markets
Group Inc., formerly known as Pink OTC Markets Inc.; or (d) if none of the above is applicable, such amount as may be determined
by the Committee (acting on the advice of an Independent Third Party, should the Committee elect in its sole discretion to utilize
an Independent Third Party for this purpose), in good faith, to be the fair market value per share of Common Stock. The determination
of Fair Market Value shall, where applicable, be in compliance with Section 409A of the Code.

 

2.19“Incentive”
is defined in Section 2.2 hereof.

 

2.20“Incentive
Stock Option” means an incentive stock option within the meaning of Section 422 of the Code, granted pursuant to
this Plan.

 

2.21“Independent
Third Party” means an individual or entity independent of the Company having experience in providing investment banking
or similar appraisal or valuation services and with expertise generally in the valuation of securities or other property for purposes
of this Plan. The Committee may utilize one or more Independent Third Parties.

 

    	- 4 -

    	 

    

 

2.22“Nonqualified
Stock Option” means a nonqualified stock option, granted pursuant to this Plan, which is not an Incentive Stock Option.

 

2.23“Option
Price” means the price which must be paid by a Participant upon exercise of a Stock Option to purchase a share of
Common Stock.

 

2.24“Other
Award” means an Award issued pursuant to Section 6.9 hereof.

 

2.25“Outside
Director” means a director of the Company who is not an Employee or a Contractor.

 

2.26“Participant”
means an Employee or Contractor of the Company or a Subsidiary or an Outside Director to whom an Award is granted under this Plan.

 

2.27“Performance
Award” means an Award hereunder of cash, shares of Common Stock, units or rights based upon, payable in, or otherwise
related to, Common Stock pursuant to Section 6.7 hereof.

 

2.28“Performance
Goal” means any of the goals set forth in Section 6.10 hereof.

 

2.29“Plan”
means this Nano Vibronix, Inc. 2014 Long-Term Incentive Plan, as amended from time to time.

 

2.30“Reporting
Participant” means a Participant who is subject to the reporting requirements of Section 16 of the Exchange Act.

 

2.31“Restricted
Stock” means shares of Common Stock issued or transferred to a Participant pursuant to Section 6.4 of this
Plan which are subject to restrictions or limitations set forth in this Plan and in the related Award Agreement.

 

2.32“Restricted
Stock Units” means units awarded to Participants pursuant to Section 6.6 hereof, which are convertible into
Common Stock at such time as such units are no longer subject to restrictions as established by the Committee.

 

2.33“Retirement”
means any Termination of Service solely due to retirement upon or after attainment of age sixty-five (65), or permitted early retirement
as determined by the Committee; provided, however, in the case of Participants who reside in the European
Economic Area, “Retirement” shall mean any Termination of Service as of a date they are eligible for mandatory retirement
benefits under local law, without regard to age.

 

2.34“SAR”
or “Stock Appreciation Right” means the right to receive an amount, in cash and/or Common Stock, equal
to the excess of the Fair Market Value of a specified number of shares of Common Stock as of the date the SAR is exercised (or,
as provided in the Award Agreement, converted) over the SAR Price for such shares.

 

2.35“SAR
Price” means the exercise price or conversion price of each share of Common Stock covered by a SAR, determined on
the Date of Grant of the SAR.

 

2.36“Stock
Option” means a Nonqualified Stock Option or an Incentive Stock Option.

 

    	- 5 -

    	 

    

 

2.37“Subsidiary”
means (i) any corporation in an unbroken chain of corporations beginning with the Company, if each of the corporations other than
the last corporation in the unbroken chain owns stock possessing a majority of the total combined voting power of all classes of
stock in one of the other corporations in the chain, (ii) any limited partnership, if the Company or any corporation described
in item (i) above owns a majority of the general partnership interest and a majority of the limited partnership interests entitled
to vote on the removal and replacement of the general partner, and (iii) any partnership or limited liability company, if the partners
or members thereof are composed only of the Company, any corporation listed in item (i) above or any limited partnership listed
in item (ii) above. “Subsidiaries” means more than one of any such corporations, limited partnerships,
partnerships or limited liability companies.

 

2.38“Termination
of Service” occurs when a Participant who is (i) an Employee of the Company or any Subsidiary ceases to serve as
an Employee of the Company and its Subsidiaries, for any reason; (ii) an Outside Director of the Company or a Subsidiary ceases
to serve as a director of the Company and its Subsidiaries for any reason; or (iii) a Contractor of the Company or a Subsidiary
ceases to serve as a Contractor of the Company and its Subsidiaries for any reason. Except as may be necessary or desirable to
comply with applicable federal or state law, a “Termination of Service” shall not be deemed to have occurred when a
Participant who is an Employee becomes an Outside Director or Contractor or vice versa. If, however, a Participant who is an Employee
and who has an Incentive Stock Option ceases to be an Employee but does not suffer a Termination of Service, and if that Participant
does not exercise the Incentive Stock Option within the time required under Section 422 of the Code upon ceasing to be an Employee,
the Incentive Stock Option shall thereafter become a Nonqualified Stock Option. Notwithstanding the foregoing provisions of this
Section 2.38, in the event an Award issued under the Plan is subject to Section 409A of the Code, then, in lieu of the foregoing
definition and to the extent necessary to comply with the requirements of Section 409A of the Code, the definition of “Termination
of Service” for purposes of such Award shall be the definition of “separation from service” provided for under
Section 409A of the Code and the regulations or other guidance issued thereunder.

 

2.39“Total
and Permanent Disability” means a Participant is qualified for long-term disability benefits under the Company’s
or Subsidiary’s disability plan or insurance policy; or, if no such plan or policy is then in existence or if the Participant
is not eligible to participate in such plan or policy, that the Participant, because of a physical or mental condition resulting
from bodily injury, disease, or mental disorder, is unable to perform his or her duties of employment for a period of six (6) continuous
months, as determined in good faith by the Committee, based upon medical reports or other evidence satisfactory to the Committee;
provided that, with respect to any Incentive Stock Option, Total and Permanent Disability shall have the meaning
given it under the rules governing Incentive Stock Options under the Code. Notwithstanding the foregoing provisions of this Section
2.39, in the event an Award issued under the Plan is subject to Section 409A of the Code, then, in lieu of the foregoing definition
and to the extent necessary to comply with the requirements of Section 409A of the Code, the definition of “Total and Permanent
Disability” for purposes of such Award shall be the definition of “disability” provided for under Section 409A
of the Code and the regulations or other guidance issued thereunder.

 

Article
3

ADMINISTRATION

 

3.1General Administration;
Establishment of Committee. Subject to the terms of this Article 3, the Plan shall be administered by the Board
or such committee of the Board as is designated by the Board to administer the Plan (the “Committee”).
The Committee shall consist of not fewer than two persons. Any member of the Committee may be removed at any time, with or without
cause, by resolution of the Board. Any vacancy occurring in the membership of the Committee may be filled by appointment by the
Board. At any time there is no Committee to administer the Plan, any references in this Plan to the Committee shall be deemed to
refer to the Board.

 

    	- 6 -

    	 

    

 

Membership on the Committee
shall be limited to those members of the Board who are “outside directors” under Section 162(m) of the Code and “non-employee
directors” as defined in Rule 16b-3 promulgated under the Exchange Act. The Committee shall select one of its members to
act as its Chairman. A majority of the Committee shall constitute a quorum, and the act of a majority of the members of the Committee
present at a meeting at which a quorum is present shall be the act of the Committee.

 

3.2Designation
of Participants and Awards.

 

(a)The
Committee or the Board shall determine and designate from time to time the eligible persons to whom Awards will be granted and
shall set forth in each related Award Agreement, where applicable, the Award Period, the Date of Grant, and such other terms, provisions,
limitations, and performance requirements, as are approved by the Committee, but not inconsistent with the Plan. The Committee
shall determine whether an Award shall include one type of Incentive or two or more Incentives granted in combination or two or
more Incentives granted in tandem (that is, a joint grant where exercise of one Incentive results in cancellation of all or a portion
of the other Incentive). Although the members of the Committee shall be eligible to receive Awards, all decisions with respect
to any Award, and the terms and conditions thereof, to be granted under the Plan to any member of the Committee shall be made solely
and exclusively by the other members of the Committee, or if such member is the only member of the Committee, by the Board.

 

(b)Notwithstanding
Section 3.2(a), to the extent permitted by Applicable Law, the Board may, in its discretion and by a resolution adopted
by the Board, authorize one or more officers of the Company (an “Authorized Officer”) to (i) designate
one or more Employees as eligible persons to whom Awards will be granted under the Plan, and (ii) determine the number of shares
of Common Stock that will be subject to such Awards; provided, however, that the resolution of the Board granting
such authority shall (x) specify the total number of shares of Common Stock that may be made subject to the Awards, (y) set forth
the price or prices (or a formula by which such price or prices may be determined) to be paid for the purchase of the Common Stock
subject to such Awards, and (z) not authorize an officer to designate himself as a recipient of any Award.

 

3.3Authority
of the Committee. The Committee, in its discretion, shall (i) interpret the Plan and Award Agreements, (ii) prescribe, amend,
and rescind any rules and regulations and sub-plans (including sub-plans for Awards made to Participants who are not resident in
the United States), as necessary or appropriate for the administration of the Plan, (iii) establish performance goals for an Award
and certify the extent of their achievement, and (iv) make such other determinations or certifications and take such other action
as it deems necessary or advisable in the administration of the Plan. Any interpretation, determination, or other action made or
taken by the Committee shall be final, binding, and conclusive on all interested parties. The Committee’s discretion set
forth herein shall not be limited by any provision of the Plan, including any provision which by its terms is applicable notwithstanding
any other provision of the Plan to the contrary.

 

The Committee may delegate
to officers of the Company, pursuant to a written delegation, the authority to perform specified functions under the Plan. Any
actions taken by any officers of the Company pursuant to such written delegation of authority shall be deemed to have been taken
by the Committee.

 

    	- 7 -

    	 

    

 

With respect to restrictions
in the Plan that are based on the requirements of Rule 16b-3 promulgated under the Exchange Act, Section 422 of the Code, Section
162(m) of the Code, the rules of any exchange or inter-dealer quotation system upon which the Company’s securities are listed
or quoted, or any other Applicable Law, to the extent that any such restrictions are no longer required by Applicable Law, the
Committee shall have the sole discretion and authority to grant Awards that are not subject to such mandated restrictions and/or
to waive any such mandated restrictions with respect to outstanding Awards.

 

Article
4

ELIGIBILITY

 

Any Employee (including
an Employee who is also a director or an officer), Contractor or Outside Director of the Company whose judgment, initiative, and
efforts contributed or may be expected to contribute to the successful performance of the Company is eligible to participate in
the Plan; provided that only Employees of a Corporation shall be eligible to receive Incentive Stock Options. The Committee, upon
its own action, may grant, but shall not be required to grant, an Award to any Employee, Contractor or Outside Director. Awards
may be granted by the Committee at any time and from time to time to new Participants, or to then Participants, or to a greater
or lesser number of Participants, and may include or exclude previous Participants, as the Committee shall determine. Except as
required by this Plan, Awards need not contain similar provisions. The Committee’s determinations under the Plan (including
without limitation determinations of which Employees, Contractors or Outside Directors, if any, are to receive Awards, the form,
amount and timing of such Awards, the terms and provisions of such Awards and the agreements evidencing same) need not be uniform
and may be made by it selectively among Participants who receive, or are eligible to receive, Awards under the Plan.

 

Article
5

SHARES SUBJECT TO PLAN

 

5.1Number Available
for Awards. Subject to adjustment as provided in Articles 11 and 12, the maximum number of shares of Common Stock
that may be delivered pursuant to Awards granted under the Plan is Five Million (5,000,000) shares, of which one hundred percent
(100%) may be delivered pursuant to Incentive Stock Options. Subject to adjustment pursuant to Articles 11 and 12, the maximum
number of shares of Common Stock with respect to which Stock Options or SARs may be granted to an Executive Officer during any
calendar year is One Million (1,000,000) shares of Common Stock. Shares to be issued may be made available from authorized but
unissued Common Stock, Common Stock held by the Company in its treasury, or Common Stock purchased by the Company on the open market
or otherwise. During the term of this Plan, the Company will at all times reserve and keep available the number of shares of Common
Stock that shall be sufficient to satisfy the requirements of this Plan.

 

5.2Reuse of
Shares. To the extent that any Award under this Plan shall be forfeited, shall expire or be canceled, in whole or in part,
then the number of shares of Common Stock covered by the Award or stock option so forfeited, expired or canceled may again be awarded
pursuant to the provisions of this Plan. In the event that previously acquired shares of Common Stock are delivered to the Company
in full or partial payment of the exercise price for the exercise of a Stock Option granted under this Plan, the number of shares
of Common Stock available for future Awards under this Plan shall be reduced only by the net number of shares of Common Stock issued
upon the exercise of the Stock Option. Awards that may be satisfied either by the issuance of shares of Common Stock or by cash
or other consideration shall be counted against the maximum number of shares of Common Stock that may be issued under this Plan
only during the period that the Award is outstanding or to the extent the Award is ultimately satisfied by the issuance of shares
of Common Stock. Awards will not reduce the number of shares of Common Stock that may be issued pursuant to this Plan if the settlement
of the Award will not require the issuance of shares of Common Stock, as, for example, a SAR that can be satisfied only by the
payment of cash. Notwithstanding any provisions of the Plan to the contrary, only shares forfeited back to the Company, shares
canceled on account of termination, expiration or lapse of an Award, shares surrendered in payment of the exercise price of an
option or shares withheld for payment of applicable employment taxes and/or withholding obligations resulting from the exercise
of an option shall again be available for grant of Incentive Stock Options under the Plan, but shall not increase the maximum number
of shares described in Section 5.1 above as the maximum number of shares of Common Stock that may be delivered pursuant
to Incentive Stock Options.

 

    	- 8 -

    	 

    

 

Article
6

GRANT OF AWARDS

 

6.1In General.

 

(a)The
grant of an Award shall be authorized by the Committee and shall be evidenced by an Award Agreement setting forth the Incentive
or Incentives being granted, the total number of shares of Common Stock subject to the Incentive(s), the Option Price (if applicable),
the Award Period, the Date of Grant, and such other terms, provisions, limitations, and performance objectives, as are approved
by the Committee, but (i) not inconsistent with the Plan, (ii) to the extent an Award issued under the Plan is subject to Section
409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance
issued thereunder, and (iii) to the extent the Committee determines that an Award shall comply with the requirements of Section
162(m) of the Code, in compliance with the applicable requirements of Section 162(m) of the Code and the regulations and other
guidance issued thereunder. The Company shall execute an Award Agreement with a Participant after the Committee approves the issuance
of an Award. Any Award granted pursuant to this Plan must be granted within ten (10) years of the date of adoption of this Plan
by the Board. The Plan shall be submitted to the Company’s stockholders for approval; however, the Committee may grant Awards
under the Plan prior to the time of stockholder approval. Any such Award granted prior to such stockholder approval shall be made
subject to such stockholder approval. The grant of an Award to a Participant shall not be deemed either to entitle the Participant
to, or to disqualify the Participant from, receipt of any other Award under the Plan.

 

(b)If
the Committee establishes a purchase price for an Award, the Participant must accept such Award within a period of thirty (30)
days (or such shorter period as the Committee may specify) after the Date of Grant by executing the applicable Award Agreement
and paying such purchase price.

 

(c)Any
Award under this Plan that is settled in whole or in part in cash on a deferred basis may provide for interest equivalents to be
credited with respect to such cash payment. Interest equivalents may be compounded and shall be paid upon such terms and conditions
as may be specified by the grant.

 

    	- 9 -

    	 

    

 

6.2Option Price.
The Option Price for any share of Common Stock which may be purchased under a Nonqualified Stock Option for any share of Common
Stock may be equal to or greater than the Fair Market Value of the share on the Date of Grant. The Option Price for any share of
Common Stock which may be purchased under an Incentive Stock Option must be at least equal to the Fair Market Value of the share
on the Date of Grant; if an Incentive Stock Option is granted to an Employee who owns or is deemed to own (by reason of the attribution
rules of Section 424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes of stock of the Company
(or any parent or Subsidiary), the Option Price shall be at least one hundred ten percent (110%) of the Fair Market Value of the
Common Stock on the Date of Grant.

 

6.3Maximum ISO
Grants. The Committee may not grant Incentive Stock Options under the Plan to any Employee which would permit the aggregate
Fair Market Value (determined on the Date of Grant) of the Common Stock with respect to which Incentive Stock Options (under this
and any other plan of the Company and its Subsidiaries) are exercisable for the first time by such Employee during any calendar
year to exceed $100,000. To the extent any Stock Option granted under this Plan which is designated as an Incentive Stock Option
exceeds this limit or otherwise fails to qualify as an Incentive Stock Option, such Stock Option (or any such portion thereof)
shall be a Nonqualified Stock Option. In such case, the Committee shall designate which stock will be treated as Incentive Stock
Option stock by causing the issuance of a separate stock certificate and identifying such stock as Incentive Stock Option stock
on the Company’s stock transfer records.

 

6.4Restricted
Stock. If Restricted Stock is granted to or received by a Participant under an Award (including a Stock Option), the Committee
shall set forth in the related Award Agreement: (i) the number of shares of Common Stock awarded, (ii) the price, if any, to be
paid by the Participant for such Restricted Stock and the method of payment of the price, (iii) the time or times within which
such Award may be subject to forfeiture, (iv) specified Performance Goals of the Company, a Subsidiary, any division thereof or
any group of Employees of the Company, or other criteria, which the Committee determines must be met in order to remove any restrictions
(including vesting) on such Award, and (v) all other terms, limitations, restrictions, and conditions of the Restricted Stock,
which shall be consistent with this Plan, to the extent applicable and in the event the Committee determines that an Award shall
comply with the requirements of Section 162(m) of the Code, in compliance with the requirements of Section 162(m) of the Code and
the regulations and other guidance issued thereunder and, to the extent Restricted Stock granted under the Plan is subject to Section
409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance
issued thereunder. The provisions of Restricted Stock need not be the same with respect to each Participant.

 

(a)Legend
on Shares. The Company shall electronically register the Restricted Stock awarded to a Participant in the name of such Participant,
which shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock,
substantially as provided in Section 15.10 of the Plan. No stock certificate or certificates shall be issued with respect
to such shares of Common Stock, unless, following the expiration of the Restriction Period (as defined in Section 6.4(b)(i)(a)(i))
without forfeiture in respect of such shares of Common Stock, the Participant requests delivery of the certificate or certificates
by submitting a written request to the Committee (or such party designated by the Company) requesting delivery of the certificates.
The Company shall deliver the certificates requested by the Participant to the Participant as soon as administratively practicable
following the Company’s receipt of such request.

 

(b)Restrictions
and Conditions. Shares of Restricted Stock shall be subject to the following restrictions and conditions:

 

    	- 10 -

    	 

    

 

(i)Subject
to the other provisions of this Plan and the terms of the particular Award Agreements, during such period as may be determined
by the Committee commencing on the Date of Grant or the date of exercise of an Award (the “Restriction Period”),
the Participant shall not be permitted to sell, transfer, pledge or assign shares of Restricted Stock. Except for these limitations,
the Committee may in its sole discretion, remove any or all of the restrictions on such Restricted Stock whenever it may determine
that, by reason of changes in Applicable Laws or other changes in circumstances arising after the date of the Award, such action
is appropriate.

 

(ii)Except
as provided in sub-paragraph (i) above or in the applicable Award Agreement, the Participant shall have, with respect to his or
her Restricted Stock, all of the rights of a stockholder of the Company, including the right to vote the shares, and the right
to receive any dividends thereon. Certificates for shares of Common Stock free of restriction under this Plan shall be delivered
to the Participant promptly after, and only after, the Restriction Period shall expire without forfeiture in respect of such shares
of Common Stock or after any other restrictions imposed on such shares of Common Stock by the applicable Award Agreement or other
agreement have expired. Certificates for the shares of Common Stock forfeited under the provisions of the Plan and the applicable
Award Agreement shall be promptly returned to the Company by the forfeiting Participant. Each Award Agreement shall require that
each Participant, in connection with the issuance of a certificate for Restricted Stock, shall endorse such certificate in blank
or execute a stock power in form satisfactory to the Company in blank and deliver such certificate and executed stock power to
the Company.

 

(iii)The
Restriction Period of Restricted Stock shall commence on the Date of Grant or the date of exercise of an Award, as specified in
the Award Agreement, and, subject to Article 12 of the Plan, unless otherwise established by the Committee in the Award
Agreement setting forth the terms of the Restricted Stock, shall expire upon satisfaction of the conditions set forth in the Award
Agreement; such conditions may provide for vesting based on such Performance Goals, as may be determined by the Committee in its
sole discretion.

 

(iv)Except
as otherwise provided in the particular Award Agreement, upon Termination of Service for any reason during the Restriction Period,
the nonvested shares of Restricted Stock shall be forfeited by the Participant. In the event a Participant has paid any consideration
to the Company for such forfeited Restricted Stock, the Committee shall specify in the Award Agreement that either (i) the Company
shall be obligated to, or (ii) the Company may, in its sole discretion, elect to, pay to the Participant, as soon as practicable
after the event causing forfeiture, in cash, an amount equal to the lesser of the total consideration paid by the Participant for
such forfeited shares or the Fair Market Value of such forfeited shares as of the date of Termination of Service, as the Committee,
in its sole discretion shall select. Upon any forfeiture, all rights of a Participant with respect to the forfeited shares of the
Restricted Stock shall cease and terminate, without any further obligation on the part of the Company.

 

6.5SARs.
The Committee may grant SARs to any Participant, either as a separate Award or in connection with a Stock Option. SARs shall be
subject to such terms and conditions as the Committee shall impose, provided that such terms and conditions are (i) not inconsistent
with the Plan, (ii) to the extent a SAR issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable
requirements of Section 409A of the Code and the regulations or other guidance issued thereunder, and (iii) to the extent the Committee
determines that a SAR shall comply with the requirements of Section 162(m) of the Code, in compliance with the applicable requirements
of Section 162(m) and the regulations and other guidance issued thereunder. The grant of the SAR may provide that the holder may
be paid for the value of the SAR either in cash or in shares of Common Stock, or a combination thereof. In the event of the exercise
of a SAR payable in shares of Common Stock, the holder of the SAR shall receive that number of whole shares of Common Stock having
an aggregate Fair Market Value on the date of exercise equal to the value obtained by multiplying (i) the difference between the
Fair Market Value of a share of Common Stock on the date of exercise over the SAR Price as set forth in such SAR (or other value
specified in the agreement granting the SAR), by (ii) the number of shares of Common Stock as to which the SAR is exercised, with
a cash settlement to be made for any fractional shares of Common Stock. The SAR Price for any share of Common Stock subject to
a SAR may be equal to or greater than the Fair Market Value of the share on the Date of Grant. The Committee, in its sole discretion,
may place a ceiling on the amount payable upon exercise of a SAR, but any such limitation shall be specified at the time that the
SAR is granted.

 

    	- 11 -

    	 

    

 

6.6Restricted
Stock Units. Restricted Stock Units may be awarded or sold to any Participant under such terms and conditions as shall be established
by the Committee, provided, however, that such terms and conditions are (i) not inconsistent with the Plan, (ii) to the extent
a Restricted Stock Unit issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable requirements
of Section 409A of the Code and the regulations or other guidance issued thereunder, and (iii) to the extent the Committee determines
that a Restricted Stock Unit award shall comply with the requirements of Section 162(m) of the Code, in compliance with the applicable
requirements of Section 162(m) and the regulations and other guidance issued thereunder. Restricted Stock Units shall be subject
to such restrictions as the Committee determines, including, without limitation, (a) a prohibition against sale, assignment, transfer,
pledge, hypothecation or other encumbrance for a specified period; or (b) a requirement that the holder forfeit (or in the case
of shares of Common Stock or units sold to the Participant, resell to the Company at cost) such shares or units in the event of
Termination of Service during the period of restriction.

 

6.7Performance
Awards.

 

(a)The
Committee may grant Performance Awards to one or more Participants. The terms and conditions of Performance Awards shall be specified
at the time of the grant and may include provisions establishing the performance period, the Performance Goals to be achieved during
a performance period, and the maximum or minimum settlement values, provided that such terms and conditions are (i) not inconsistent
with the Plan and (ii) to the extent a Performance Award issued under the Plan is subject to Section 409A of the Code, in compliance
with the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder. If the Performance
Award is to be in shares of Common Stock, the Performance Awards may provide for the issuance of the shares of Common Stock at
the time of the grant of the Performance Award or at the time of the certification by the Committee that the Performance Goals
for the performance period have been met; provided, however, if shares of Common Stock are issued at the time of
the grant of the Performance Award and if, at the end of the performance period, the Performance Goals are not certified by the
Committee to have been fully satisfied, then, notwithstanding any other provisions of this Plan to the contrary, the Common Stock
shall be forfeited in accordance with the terms of the grant to the extent the Committee determines that the Performance Goals
were not met. The forfeiture of shares of Common Stock issued at the time of the grant of the Performance Award due to failure
to achieve the established Performance Goals shall be separate from and in addition to any other restrictions provided for in this
Plan that may be applicable to such shares of Common Stock. Each Performance Award granted to one or more Participants shall have
its own terms and conditions.

 

    	- 12 -

    	 

    

 

To the extent
the Committee determines that a Performance Award shall comply with the requirements of Section 162(m) of the Code and the regulations
and other guidance issued thereunder, and if it is determined to be necessary in order to satisfy Section 162(m) of the Code, at
the time of the grant of a Performance Award (other than a Stock Option) and to the extent permitted under Section 162(m) of the
Code and the regulations issued thereunder, the Committee shall provide for the manner in which the Performance Goals shall be
reduced to take into account the negative effect on the achievement of specified levels of the Performance Goals which may result
from enumerated corporate transactions, extraordinary events, accounting changes and other similar occurrences which were unanticipated
at the time the Performance Goal was initially established. In no event, however, may the Committee increase the amount earned
under such a Performance Award, unless the reduction in the Performance Goals would reduce or eliminate the amount to be earned
under the Performance Award and the Committee determines not to make such reduction or elimination.

 

With respect
to a Performance Award that is not intended to satisfy the requirements of Code Section 162(m), if the Committee determines, in
its sole discretion, that the established performance measures or objectives are no longer suitable because of a change in the
Company’s business, operations, corporate structure, or for other reasons that the Committee deemed satisfactory, the Committee
may modify the performance measures or objectives and/or the performance period.

 

(b)Performance
Awards may be valued by reference to the Fair Market Value of a share of Common Stock or according to any formula or method deemed
appropriate by the Committee, in its sole discretion, including, but not limited to, achievement of Performance Goals or other
specific financial, production, sales or cost performance objectives that the Committee believes to be relevant to the Company’s
business and/or remaining in the employ of the Company or a Subsidiary for a specified period of time. Performance Awards may be
paid in cash, shares of Common Stock, or other consideration, or any combination thereof. If payable in shares of Common Stock,
the consideration for the issuance of such shares may be the achievement of the performance objective established at the time of
the grant of the Performance Award. Performance Awards may be payable in a single payment or in installments and may be payable
at a specified date or dates or upon attaining the performance objective. The extent to which any applicable performance objective
has been achieved shall be conclusively determined by the Committee.

 

(c)Notwithstanding
the foregoing, in order to comply with the requirements of Section 162(m) of the Code, if applicable, no Participant may receive
in any calendar year Performance Awards intended to comply with the requirements of Section 162(m) of the Code which have an aggregate
value of more than $4,000,000, and if such Performance Awards involve the issuance of shares of Common Stock, said
aggregate value shall be based on the Fair Market Value of such shares on the time of the grant of the Performance Award. In no
event, however, shall any Performance Awards not intended to comply with the requirements of Section 162(m) of the Code be issued
contingent upon the failure to attain the Performance Goals applicable to any Performance Awards granted hereunder that the Committee
intends to comply with the requirements of Section 162(m) of the Code.

 

    	- 13 -

    	 

    

 

6.8Dividend
Equivalent Rights. The Committee may grant a Dividend Equivalent Right to any Participant, either as a component of another
Award or as a separate Award. The terms and conditions of the Dividend Equivalent Right shall be specified by the grant. Dividend
equivalents credited to the holder of a Dividend Equivalent Right may be paid currently or may be deemed to be reinvested in additional
shares of Common Stock (which may thereafter accrue additional dividend equivalents). Any such reinvestment shall be at the Fair
Market Value at the time thereof. Dividend Equivalent Rights may be settled in cash or shares of Common Stock, or a combination
thereof, in a single payment or in installments. A Dividend Equivalent Right granted as a component of another Award may provide
that such Dividend Equivalent Right shall be settled upon exercise, settlement, or payment of, or lapse of restrictions on, such
other Award, and that such Dividend Equivalent Right granted as a component of another Award may also contain terms and conditions
different from such other Award.

 

6.9Other Awards.
The Committee may grant to any Participant other forms of Awards, based upon, payable in, or otherwise related to, in whole or
in part, shares of Common Stock, if the Committee determines that such other form of Award is consistent with the purpose and restrictions
of this Plan. The terms and conditions of such other form of Award shall be specified by the grant. Such Other Awards may be granted
for no cash consideration, for such minimum consideration as may be required by Applicable Law, or for such other consideration
as may be specified by the grant.

 

6.10Performance
Goals. Awards of Restricted Stock, Restricted Stock Units, Performance Award and Other Awards (whether relating to cash or
shares of Common Stock) under the Plan may be made subject to the attainment of Performance Goals relating to one or more business
criteria which, where applicable, shall be within the meaning of Section 162(m) of the Code and consist of one or more or any combination
of the following criteria: cash flow; cost; revenues; sales; ratio of debt to debt plus equity; net borrowing, credit quality or
debt ratings; profit before tax; economic profit; earnings before interest and taxes; earnings before interest, taxes, depreciation
and amortization; gross margin; earnings per share (whether on a pre-tax, after-tax, operational or other basis); operating earnings;
capital expenditures; expenses or expense levels; economic value added; ratio of operating earnings to capital spending or any
other operating ratios; free cash flow; net profit; net sales; net asset value per share; the accomplishment of mergers, acquisitions,
dispositions, public offerings or similar extraordinary business transactions; sales growth; price of the Company’s Common
Stock; return on assets, equity or stockholders’ equity; market share; inventory levels, inventory turn or shrinkage; or
total return to stockholders (“Performance Criteria”). Any Performance Criteria may be used to measure
the performance of the Company as a whole or any business unit of the Company and may be measured relative to a peer group or index.
Any Performance Criteria may include or exclude (i) extraordinary, unusual and/or non-recurring items of gain or loss, (ii) gains
or losses on the disposition of a business, (iii) changes in tax or accounting regulations or laws, (iv) the effect of a merger
or acquisition, as identified in the Company’s quarterly and annual earnings releases, or (v) other similar occurrences.
In all other respects, Performance Criteria shall be calculated in accordance with the Company’s financial statements, under
generally accepted accounting principles, or under a methodology established by the Committee prior to the issuance of an Award
which is consistently applied and identified in the audited financial statements, including footnotes, or the Compensation Discussion
and Analysis section of the Company’s annual report. However, to the extent Section 162(m) of the Code is applicable, the
Committee may not in any event increase the amount of compensation payable to an individual upon the attainment of a Performance
Goal.

 

6.11Tandem Awards.
The Committee may grant two or more Incentives in one Award in the form of a “tandem Award,” so that the right of the
Participant to exercise one Incentive shall be canceled if, and to the extent, the other Incentive is exercised. For example, if
a Stock Option and a SAR are issued in a tandem Award, and the Participant exercises the SAR with respect to one hundred (100)
shares of Common Stock, the right of the Participant to exercise the related Stock Option shall be canceled to the extent of one
hundred (100) shares of Common Stock.

 

    	- 14 -

    	 

    

 

Article
7

AWARD PERIOD; VESTING

 

7.1Award Period.
Subject to the other provisions of this Plan, the Committee may, in its discretion, provide that an Incentive may not be exercised
in whole or in part for any period or periods of time or beyond any date specified in the Award Agreement. Except as provided in
the Award Agreement, an Incentive may be exercised in whole or in part at any time during its term. The Award Period for an Incentive
shall be reduced or terminated upon Termination of Service. No Incentive granted under the Plan may be exercised at any time after
the end of its Award Period. No portion of any Incentive may be exercised after the expiration of ten (10) years from its Date
of Grant. However, if an Employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more
than ten percent (10%) of the combined voting power of all classes of stock of the Company (or any parent or Subsidiary) and an
Incentive Stock Option is granted to such Employee, the term of such Incentive Stock Option (to the extent required by the Code
at the time of grant) shall be no more than five (5) years from the Date of Grant.

 

7.2Vesting.
The Committee, in its sole discretion, may determine that an Incentive will be immediately vested in whole or in part, or that
all or any portion may not be vested until a date, or dates, subsequent to its Date of Grant, or until the occurrence of one or
more specified events, subject in any case to the terms of the Plan. If the Committee imposes conditions upon vesting, then, subsequent
to the Date of Grant, the Committee may, in its sole discretion, accelerate the date on which all or any portion of the Incentive
may be vested.

 

Article
8

EXERCISE OR CONVERSION OF INCENTIVE

 

8.1In General.
A vested Incentive may be exercised or converted, during its Award Period, subject to limitations and restrictions set forth in
the Award Agreement.

 

8.2Securities
Law and Exchange Restrictions. In no event may an Incentive be exercised or shares of Common Stock issued pursuant to an Award
if a necessary listing or quotation of the shares of Common Stock on a stock exchange or inter-dealer quotation system or any registration
under state or federal securities laws required under the circumstances has not been accomplished.

 

8.3Exercise
of Stock Option.

 

(a)In
General. If a Stock Option is exercisable prior to the time it is vested, the Common Stock obtained on the exercise of the
Stock Option shall be Restricted Stock which is subject to the applicable provisions of the Plan and the Award Agreement. If the
Committee imposes conditions upon exercise, then subsequent to the Date of Grant, the Committee may, in its sole discretion, accelerate
the date on which all or any portion of the Stock Option may be exercised. No Stock Option may be exercised for a fractional share
of Common Stock. The granting of a Stock Option shall impose no obligation upon the Participant to exercise that Stock Option.

 

    	- 15 -

    	 

    

 

(b)Notice
and Payment. Subject to such administrative regulations as the Committee may from time to time adopt, a Stock Option may be
exercised by the delivery of written notice to the Committee setting forth the number of shares of Common Stock with respect to
which the Stock Option is to be exercised and the date of exercise thereof (the “Exercise Date”) which
shall be at least three (3) days after giving such notice unless an earlier time shall have been mutually agreed upon. On the Exercise
Date, the Participant shall deliver to the Company consideration with a value equal to the total Option Price of the shares to
be purchased, payable as provided in the Award Agreement, which may provide for payment in any one or more of the following ways:
(a) cash or check, bank draft, or money order payable to the order of the Company, (b) Common Stock (including Restricted Stock)
owned by the Participant on the Exercise Date, valued at its Fair Market Value on the Exercise Date, and which the Participant
has not acquired from the Company within six (6) months prior to the Exercise Date, (c) by delivery (including by FAX) to the Company
or its designated agent of an executed irrevocable option exercise form together with irrevocable instructions from the Participant
to a broker or dealer, reasonably acceptable to the Company, to sell certain of the shares of Common Stock purchased upon exercise
of the Stock Option or to pledge such shares as collateral for a loan and promptly deliver to the Company the amount of sale or
loan proceeds necessary to pay such purchase price, and/or (d) in any other form of valid consideration that is acceptable to the
Committee in its sole discretion. In the event that shares of Restricted Stock are tendered as consideration for the exercise of
a Stock Option, a number of shares of Common Stock issued upon the exercise of the Stock Option equal to the number of shares of
Restricted Stock used as consideration therefor shall be subject to the same restrictions and provisions as the Restricted Stock
so tendered.

 

(c)Issuance
of Certificate. Except as otherwise provided in Section 6.4 hereof (with respect to shares of Restricted Stock) or in
the applicable Award Agreement, upon payment of all amounts due from the Participant, the Company shall cause the Common Stock
then being purchased to be registered in the Participant’s name (or the person exercising the Participant’s Stock Option
in the event of his or her death), but shall not issue certificates for the Common Stock unless the Participant or such other person
requests delivery of the certificates for the Common Stock, in writing in accordance with the procedures established by the Committee.
The Company shall deliver certificates to the Participant (or the person exercising the Participant’s Stock Option in the
event of his or her death) as soon as administratively practicable following the Company’s receipt of a written request from
the Participant or such other person for delivery of the certificates. Notwithstanding the forgoing, if the Participant has exercised
an Incentive Stock Option, the Company may at its option retain physical possession of the certificate evidencing the shares acquired
upon exercise until the expiration of the holding periods described in Section 422(a)(1) of the Code. Any obligation of the Company
to deliver shares of Common Stock shall, however, be subject to the condition that, if at any time the Committee shall determine
in its discretion that the listing, registration, or qualification of the Stock Option or the Common Stock upon any securities
exchange or inter-dealer quotation system or under any state or federal law, or the consent or approval of any governmental regulatory
body, is necessary as a condition of, or in connection with, the Stock Option or the issuance or purchase of shares of Common Stock
thereunder, the Stock Option may not be exercised in whole or in part unless such listing, registration, qualification, consent,
or approval shall have been effected or obtained free of any conditions not reasonably acceptable to the Committee.

 

(d)Failure
to Pay. Except as may otherwise be provided in an Award Agreement, if the Participant fails to pay for any of the Common Stock
specified in such notice or fails to accept delivery thereof, that portion of the Participant’s Stock Option and right to
purchase such Common Stock may be forfeited by the Participant.

 

    	- 16 -

    	 

    

 

8.4SARs.
Subject to the conditions of this Section 8.4 and such administrative regulations as the Committee may from time to time
adopt, a SAR may be exercised by the delivery (including by FAX) of written notice to the Committee setting forth the number of
shares of Common Stock with respect to which the SAR is to be exercised and the date of exercise thereof (the “Exercise
Date”) which shall be at least three (3) days after giving such notice unless an earlier time shall have been mutually
agreed upon. Subject to the terms of the Award Agreement and only if permissible under Section 409A of the Code and the regulations
or other guidance issued thereunder (or, if not so permissible, at such time as permitted by Section 409A of the Code and the regulations
or other guidance issued thereunder), the Participant shall receive from the Company in exchange therefor in the discretion of
the Committee, and subject to the terms of the Award Agreement:

 

(a)cash
in an amount equal to the excess (if any) of the Fair Market Value (as of the Exercise Date, or if provided in the Award Agreement,
conversion, of the SAR) per share of Common Stock over the SAR Price per share specified in such SAR, multiplied by the total number
of shares of Common Stock of the SAR being surrendered;

 

(b)that
number of shares of Common Stock having an aggregate Fair Market Value (as of the Exercise Date, or if provided in the Award Agreement,
conversion, of the SAR) equal to the amount of cash otherwise payable to the Participant, with a cash settlement to be made for
any fractional share interests; or

 

(c)the
Company may settle such obligation in part with shares of Common Stock and in part with cash.

 

The distribution of
any cash or Common Stock pursuant to the foregoing sentence shall be made at such time as set forth in the Award Agreement.

 

8.5Disqualifying
Disposition of Incentive Stock Option. If shares of Common Stock acquired upon exercise of an Incentive Stock Option are disposed
of by a Participant prior to the expiration of either two (2) years from the Date of Grant of such Stock Option or one (1) year
from the transfer of shares of Common Stock to the Participant pursuant to the exercise of such Stock Option, or in any other disqualifying
disposition within the meaning of Section 422 of the Code, such Participant shall notify the Company in writing of the date and
terms of such disposition. A disqualifying disposition by a Participant shall not affect the status of any other Stock Option granted
under the Plan as an Incentive Stock Option within the meaning of Section 422 of the Code.

 

Article
9

AMENDMENT OR DISCONTINUANCE

 

Subject to the limitations
set forth in this Article 9, the Board may at any time and from time to time, without the consent of the Participants, alter,
amend, revise, suspend, or discontinue the Plan in whole or in part; provided, however, that no amendment for which stockholder
approval is required either (i) by any securities exchange or inter-dealer quotation system on which the Common Stock is listed
or traded or (ii) in order for the Plan and Incentives awarded under the Plan to continue to comply with Sections 162(m), 421,
and 422 of the Code, including any successors to such Sections, or other Applicable Law, shall be effective unless such amendment
shall be approved by the requisite vote of the stockholders of the Company entitled to vote thereon. Any such amendment shall,
to the extent deemed necessary or advisable by the Committee, be applicable to any outstanding Incentives theretofore granted under
the Plan, notwithstanding any contrary provisions contained in any Award Agreement. In the event of any such amendment to the Plan,
the holder of any Incentive outstanding under the Plan shall, upon request of the Committee and as a condition to the exercisability
thereof, execute a conforming amendment in the form prescribed by the Committee to any Award Agreement relating thereto. Notwithstanding
anything contained in this Plan to the contrary, unless required by law, no action contemplated or permitted by this Article
9 shall adversely affect any rights of Participants or obligations of the Company to Participants with respect to any Incentive
theretofore granted under the Plan without the consent of the affected Participant.

 

    	- 17 -

    	 

    

 

Article
10

TERM

 

The Plan shall be effective
from the date that this Plan is adopted by the Board. Unless sooner terminated by action of the Board, the Plan will terminate
on February 19, 2024, but Incentives granted before that date will continue to be effective in accordance with their terms
and conditions.

 

Article
11

CAPITAL ADJUSTMENTS

 

In the event that any
dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization,
stock split, reverse stock split, rights offering, reorganization, merger, consolidation, split-up, spin-off, split-off, combination,
subdivision, repurchase, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to
purchase Common Stock or other securities of the Company, or other similar corporate transaction or event affects the fair value
of an Award, then the Committee shall adjust any or all of the following so that the fair value of the Award immediately after
the transaction or event is equal to the fair value of the Award immediately prior to the transaction or event (i) the number of
shares and type of Common Stock (or the securities or property) which thereafter may be made the subject of Awards, (ii) the number
of shares and type of Common Stock (or other securities or property) subject to outstanding Awards, (iii) the number of shares
and type of Common Stock (or other securities or property) specified as the annual per-participant limitation under Section
5.1 of the Plan, (iv) the Option Price of each outstanding Award, (v) the amount, if any, the Company pays for forfeited shares
of Common Stock in accordance with Section 6.4, and (vi) the number of or SAR Price of shares of Common Stock then subject
to outstanding SARs previously granted and unexercised under the Plan, to the end that the same proportion of the Company’s
issued and outstanding shares of Common Stock in each instance shall remain subject to exercise at the same aggregate SAR Price;
provided however, that the number of shares of Common Stock (or other securities or property) subject to any Award shall always
be a whole number. Notwithstanding the foregoing, no such adjustment shall be made or authorized to the extent that such adjustment
would cause the Plan or any Stock Option to violate Section 422 of the Code or Section 409A of the Code. Such adjustments shall
be made in accordance with the rules of any securities exchange, stock market, or stock quotation system to which the Company is
subject.

 

Upon the occurrence
of any such adjustment, the Company shall provide notice to each affected Participant of its computation of such adjustment which
shall be conclusive and shall be binding upon each such Participant.

 

    	- 18 -

    	 

    

 

Article
12

RECAPITALIZATION, MERGER AND CONSOLIDATION

 

12.1No Effect
on Company’s Authority. The existence of this Plan and Incentives granted hereunder shall not affect in any way the right
or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations, or
other changes in the Company’s capital structure and its business, or any Change in Control, or any merger or consolidation
of the Company, or any issuance of bonds, debentures, preferred or preference stocks ranking prior to or otherwise affecting the
Common Stock or the rights thereof (or any rights, options, or warrants to purchase same), or the dissolution or liquidation of
the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether
of a similar character or otherwise.

 

12.2Conversion
of Incentives Where Company Survives. Subject to any required action by the stockholders and except as otherwise provided by
Section 12.4 hereof or as may be required to comply with Section 409A of the Code and the regulations or other guidance
issued thereunder, if the Company shall be the surviving or resulting corporation in any merger, consolidation or share exchange,
any Incentive granted hereunder shall pertain to and apply to the securities or rights (including cash, property, or assets) to
which a holder of the number of shares of Common Stock subject to the Incentive would have been entitled.

 

12.3Exchange
or Cancellation of Incentives Where Company Does Not Survive. Except as otherwise provided by Section 12.4 hereof or
as may be required to comply with Section 409A of the Code and the regulations or other guidance issued thereunder, in the event
of any merger, consolidation or share exchange pursuant to which the Company is not the surviving or resulting corporation, there
shall be substituted for each share of Common Stock subject to the unexercised portions of outstanding Incentives, that number
of shares of each class of stock or other securities or that amount of cash, property, or assets of the surviving, resulting or
consolidated company which were distributed or distributable to the stockholders of the Company in respect to each share of Common
Stock held by them, such outstanding Incentives to be thereafter exercisable for such stock, securities, cash, or property in accordance
with their terms.

 

12.4Cancellation
of Incentives. Notwithstanding the provisions of Sections 12.2 and 12.3  hereof, and except as may be required to comply
with Section 409A of the Code and the regulations or other guidance issued thereunder, all Incentives granted hereunder may be
canceled by the Company, in its sole discretion, as of the effective date of any Change in Control, merger, consolidation or share
exchange, or any issuance of bonds, debentures, preferred or preference stocks ranking prior to or otherwise affecting the Common
Stock or the rights thereof (or any rights, options, or warrants to purchase same), or of any proposed sale of all or substantially
all of the assets of the Company, or of any dissolution or liquidation of the Company, by either:

 

(a)giving
notice to each holder thereof or his personal representative of its intention to cancel those Incentives for which the issuance
of shares of Common Stock involved payment by the Participant for such shares, and permitting the purchase during the thirty (30)
day period next preceding such effective date of any or all of the shares of Common Stock subject to such outstanding Incentives,
including in the Board’s discretion some or all of the shares as to which such Incentives would not otherwise be vested and
exercisable; or

 

(b)in
the case of Incentives that are either (i) settled only in shares of Common Stock, or (ii) at the election of the Participant,
settled in shares of Common Stock, paying the holder thereof an amount equal to a reasonable estimate of the difference between
the net amount per share payable in such transaction or as a result of such transaction, and the price per share of such Incentive
to be paid by the Participant (hereinafter the “Spread”), multiplied by the number of shares subject
to the Incentive. In cases where the shares constitute, or would after exercise, constitute Restricted Stock, the Company, in its
discretion, may include some or all of those shares in the calculation of the amount payable hereunder. In estimating the Spread,
appropriate adjustments to give effect to the existence of the Incentives shall be made, such as deeming the Incentives to have
been exercised, with the Company receiving the exercise price payable thereunder, and treating the shares receivable upon exercise
of the Incentives as being outstanding in determining the net amount per share. In cases where the proposed transaction consists
of the acquisition of assets of the Company, the net amount per share shall be calculated on the basis of the net amount receivable
with respect to shares of Common Stock upon a distribution and liquidation by the Company after giving effect to expenses and charges,
including but not limited to taxes, payable by the Company before such liquidation could be completed.

 

    	- 19 -

    	 

    

 

(c)An
Award that by its terms would be fully vested or exercisable upon a Change in Control will be considered vested or exercisable
for purposes of Section 12.4(a) hereof.

 

Article
13

LIQUIDATION OR DISSOLUTION

 

Subject to Section
12.4 hereof, in case the Company shall, at any time while any Incentive under this Plan shall be in force and remain unexpired,
(i) sell all or substantially all of its property, or (ii) dissolve, liquidate, or wind up its affairs, then each Participant shall
be entitled to receive, in lieu of each share of Common Stock of the Company which such Participant would have been entitled to
receive under the Incentive, the same kind and amount of any securities or assets as may be issuable, distributable, or payable
upon any such sale, dissolution, liquidation, or winding up with respect to each share of Common Stock of the Company. If the Company
shall, at any time prior to the expiration of any Incentive, make any partial distribution of its assets, in the nature of a partial
liquidation, whether payable in cash or in kind (but excluding the distribution of a cash dividend payable out of earned surplus
and designated as such) and an adjustment is determined by the Committee to be appropriate to prevent the dilution of the benefits
or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable,
make such adjustment in accordance with the provisions of Article 11 hereof.

 

Article
14

INCENTIVES IN SUBSTITUTION FOR

INCENTIVES GRANTED BY OTHER ENTITIES

 

Incentives may be granted
under the Plan from time to time in substitution for similar instruments held by employees, independent contractors or directors
of a corporation, partnership, or limited liability company who become or are about to become Employees, Contractors or Outside
Directors of the Company or any Subsidiary as a result of a merger or consolidation of the employing corporation with the Company,
the acquisition by the Company of equity of the employing entity, or any other similar transaction pursuant to which the Company
becomes the successor employer. The terms and conditions of the substitute Incentives so granted may vary from the terms and conditions
set forth in this Plan to such extent as the Committee at the time of grant may deem appropriate to conform, in whole or in part,
to the provisions of the Incentives in substitution for which they are granted.

 

    	- 20 -

    	 

    

 

Article
15

MISCELLANEOUS PROVISIONS

 

15.1Investment
Intent. The Company may require that there be presented to and filed with it by any Participant under the Plan, such evidence
as it may deem necessary to establish that the Incentives granted or the shares of Common Stock to be purchased or transferred
are being acquired for investment and not with a view to their distribution.

 

15.2No Right
to Continued Employment. Neither the Plan nor any Incentive granted under the Plan shall confer upon any Participant any right
with respect to continuance of employment by the Company or any Subsidiary.

 

15.3Indemnification
of Board and Committee. No member of the Board or the Committee, nor any officer or Employee of the Company acting on behalf
of the Board or the Committee, shall be personally liable for any action, determination, or interpretation taken or made in good
faith with respect to the Plan, and all members of the Board and the Committee, each officer of the Company, and each Employee
of the Company acting on behalf of the Board or the Committee shall, to the extent permitted by law, be fully indemnified and protected
by the Company in respect of any such action, determination, or interpretation.

 

15.4Effect of
the Plan. Neither the adoption of this Plan nor any action of the Board or the Committee shall be deemed to give any person
any right to be granted an Award or any other rights except as may be evidenced by an Award Agreement, or any amendment thereto,
duly authorized by the Committee and executed on behalf of the Company, and then only to the extent and upon the terms and conditions
expressly set forth therein.

 

15.5Compliance
With Other Laws and Regulations. Notwithstanding anything contained herein to the contrary, the Company shall not be required
to sell or issue shares of Common Stock under any Incentive if the issuance thereof would constitute a violation by the Participant
or the Company of any provisions of any law or regulation of any governmental authority or any national securities exchange or
inter-dealer quotation system or other forum in which shares of Common Stock are quoted or traded (including without limitation
Section 16 of the Exchange Act and Section 162(m) of the Code); and, as a condition of any sale or issuance of shares of Common
Stock under an Incentive, the Committee may require such agreements or undertakings, if any, as the Committee may deem necessary
or advisable to assure compliance with any such law or regulation. The Plan, the grant and exercise of Incentives hereunder, and
the obligation of the Company to sell and deliver shares of Common Stock, shall be subject to all applicable federal and state
laws, rules and regulations and to such approvals by any government or regulatory agency as may be required.

 

15.6Foreign
Participation. To assure the viability of Awards granted to Participants employed in foreign countries, the Committee may provide
for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy or custom.
Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions of, this Plan as it
determines is necessary or appropriate for such purposes. Any such amendment, restatement or alternative versions that the Committee
approves for purposes of using this Plan in a foreign country will not affect the terms of this Plan for any other country.

 

15.7Tax Requirements.
The Company or, if applicable, any Subsidiary (for purposes of this Section 15.7, the term “Company”
shall be deemed to include any applicable Subsidiary), shall have the right to deduct from all amounts paid in cash or other form
in connection with the Plan, any Federal, state, local, or other taxes required by law to be withheld in connection with an Award
granted under this Plan. The Company may, in its sole discretion, also require the Participant receiving shares of Common Stock
issued under the Plan to pay the Company the amount of any taxes that the Company is required to withhold in connection with the
Participant’s income arising with respect to the Award. Such payments shall be required to be made when requested by Company
and may be required to be made prior to the delivery of any certificate representing shares of Common Stock. Such payment may be
made (i) by the delivery of cash to the Company in an amount that equals or exceeds (to avoid the issuance of fractional shares
under (iii) below) the required tax withholding obligations of the Company; (ii) if the Company, in its sole discretion, so consents
in writing, the actual delivery by the exercising Participant to the Company of shares of Common Stock that the Participant has
not acquired from the Company within six (6) months prior to the date of exercise, which shares so delivered have an aggregate
Fair Market Value that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding
payment; (iii) if the Company, in its sole discretion, so consents in writing, the Company’s withholding of a number of shares
to be delivered upon the exercise of the Stock Option, which shares so withheld have an aggregate fair market value that equals
(but does not exceed) the required tax withholding payment; or (iv) any combination of (i), (ii), or (iii). The Company may, in
its sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the Company to the Participant.
The Committee may in the Award Agreement impose any additional tax requirements or provisions that the Committee deems necessary
or desirable.

 

    	- 21 -

    	 

    

 

15.8Assignability.
Incentive Stock Options may not be transferred, assigned, pledged, hypothecated or otherwise conveyed or encumbered other than
by will or the laws of descent and distribution and may be exercised during the lifetime of the Participant only by the Participant
or the Participant’s legally authorized representative, and each Award Agreement in respect of an Incentive Stock Option
shall so provide. The designation by a Participant of a beneficiary will not constitute a transfer of the Stock Option. The Committee
may waive or modify any limitation contained in the preceding sentences of this Section 15.8 that is not required for compliance
with Section 422 of the Code.

 

Except as otherwise
provided herein, Awards may not be transferred, assigned, pledged, hypothecated or otherwise conveyed or encumbered other than
by will or the laws of descent and distribution. The Committee may, in its discretion, authorize all or a portion of an Award to
be granted to a Participant on terms which permit transfer by such Participant to (i) the spouse (or former spouse), children or
grandchildren of the Participant (“Immediate Family Members”), (ii) a trust or trusts for the exclusive
benefit of such Immediate Family Members, (iii) a partnership in which the only partners are (1) such Immediate Family Members
and/or (2) entities which are controlled by Immediate Family Members, (iv) an entity exempt from federal income tax pursuant to
Section 501(c)(3) of the Code or any successor provision, or (v) a split interest trust or pooled income fund described in Section
2522(c)(2) of the Code or any successor provision, provided that (x) there shall be no consideration for any such transfer,
(y) the Award Agreement pursuant to which such Award is granted must be approved by the Committee and must expressly provide for
transferability in a manner consistent with this Section, and (z) subsequent transfers of transferred Awards shall be prohibited
except those by will or the laws of descent and distribution.

 

Following any transfer,
any such Nonqualified Stock Option and SAR shall continue to be subject to the same terms and conditions as were applicable immediately
prior to transfer, provided that for purposes of Articles 8, 9, 11, 13 and 15 hereof the term “Participant”
shall be deemed to include the transferee. The events of Termination of Service shall continue to be applied with respect to the
original Participant, following which the Nonqualified Stock Options and SARs shall be exercisable or convertible by the transferee
only to the extent and for the periods specified in the Award Agreement. The Committee and the Company shall have no obligation
to inform any transferee of a Nonqualified Stock Option or SAR of any expiration, termination, lapse or acceleration of such Stock
Option or SAR. The Company shall have no obligation to register with any federal or state securities commission or agency any Common
Stock issuable or issued under a Nonqualified Stock Option or SAR that has been transferred by a Participant under this Section
15.8.

 

15.9Use of Proceeds.
Proceeds from the sale of shares of Common Stock pursuant to Incentives granted under this Plan shall constitute general funds
of the Company.

 

15.10Legend.
Each certificate representing shares of Restricted Stock issued to a Participant shall bear the following legend, or a similar
legend deemed by the Company to constitute an appropriate notice of the provisions hereof (any such certificate not having such
legend shall be surrendered upon demand by the Company and so endorsed):

 

On the face of the certificate:

 

“Transfer of this stock
is restricted in accordance with conditions printed on the reverse of this certificate.”

 

On the reverse:

 

“The shares of stock
evidenced by this certificate are subject to and transferable only in accordance with that certain Nano Vibronix, Inc. 2014 Long-Term
Incentive Plan, a copy of which is on file at the principal office of the Company in Melville, New York. No transfer or pledge
of the shares evidenced hereby may be made except in accordance with and subject to the provisions of said Plan. By acceptance
of this certificate, any holder, transferee or pledgee hereof agrees to be bound by all of the provisions of said Plan.”

 

The following legend
shall be inserted on a certificate evidencing Common Stock issued under the Plan if the shares were not issued in a transaction
registered under the applicable federal and state securities laws:

 

“Shares of stock represented
by this certificate have been acquired by the holder for investment and not for resale, transfer or distribution, have been issued
pursuant to exemptions from the registration requirements of applicable state and federal securities laws, and may not be offered
for sale, sold or transferred other than pursuant to effective registration under such laws, or in transactions otherwise in compliance
with such laws, and upon evidence satisfactory to the Company of compliance with such laws, as to which the Company may rely upon
an opinion of counsel satisfactory to the Company.”

 

A copy of this Plan
shall be kept on file in the principal office of the Company in Melville, New York.

 

***************

 

    	- 22 -

    	 

    

 

 

IN WITNESS
WHEREOF, the Company has caused this instrument to be executed as of February 28, 2014, by its Chief
Executive Officer and Secretary pursuant to prior action taken by the Board.

 

 

	NANO VIBRONIX, INC.
	 
	 
	By: 	/s/ Harold Jacob
	Name 	Harold Jacob
	Title	Chief Executive Officer

 

 

 

	
	 
	 
	By: 	 
	Name 	 
	Title	Secretary

 

    	- 23 -

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