Document:

Exhibit 10.11

 

TENON MEDICAL, INC.

 

2012 EQUITY INCENTIVE PLAN

 

		1.	Purposes of the Plan. The purposes of this
Plan are:

 

		·	to attract and retain the best available personnel for positions of substantial responsibility,

 

		·	to provide additional incentive to Employees, Directors and Consultants, and

 

		·	to promote the success of the Company’s business.

 

The Plan permits the
grant of Incentive Stock Options, Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock and Restricted Stock
Units.

 

		2.	Definitions. As used herein, the following
definitions will apply:

 

(a)           “Administrator”
means the Board or any of its Committees as will be administering the Plan, in accordance with Section 4 of the Plan.

 

(b)           “Applicable
Laws” means the requirements relating to the administration of equity-based awards under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted
and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan.

 

(c)           “Award”
means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted Stock, or Restricted
Stock Units.

 

(d)           “Award
Agreement” means the written or electronic agreement setting forth the terms and provisions applicable to each Award
granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan.

 

(e)           “Board”
means the Board of Directors of the Company.

 

(f)           “Change
in Control” means the occurrence of any of the following events:

 

(i)           Change
in Ownership of the Company. A change in the ownership of the Company which occurs on the date that any one person, or more
than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the
stock held by such Person, constitutes more than 50% of the total voting power of the stock of the Company, except that any change
in the ownership of the stock of the Company as a result of a private financing of the Company that is approved by the Board will
not be considered a Change in Control; or

 

    	 

     

    

 

(ii)           Change
in Effective Control of the Company. If the Company has a class of securities registered pursuant to Section 12 of the Exchange
Act, a change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced
during any twelve (12) month period by Directors whose appointment or election is not endorsed by a majority of the members of
the Board prior to the date of the appointment or election. For purposes of this clause (ii), if any Person is considered to be
in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered
a Change in Control; or

 

(iii)           Change
in Ownership of a Substantial Portion of the Company’s Assets. A change in the ownership of a substantial portion of
the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period
ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair
market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately prior
to such acquisition or acquisitions. For purposes of this subsection (iii), gross fair market value means the value of the assets
of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such
assets.

 

For purposes of this
Section 2(f), persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger,
consolidation, purchase or acquisition of stock, or similar business transaction with the Company.

 

Notwithstanding the
foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event within
the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations
and Internal Revenue Service guidance that has been promulgated or may be promulgated thereunder from time to time.

 

Further and for the
avoidance of doubt, a transaction will not constitute a Change in Control if: (i) its sole purpose is to change the jurisdiction
of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially
the same proportions by the persons who held the Company’s securities immediately before such transaction.

 

(g)          “Code”
means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein will be a reference to any successor
or amended section of the Code.

 

(h)           “Committee”
means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board, or by the compensation
committee of the Board, in accordance with Section 4 hereof.

 

(i)            “Common
Stock” means the common stock of the Company.

 

(j)            “Company”
means Tenon Medical, Inc., a Delaware corporation, or any successor thereto.

 

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(k)           “Consultant”
means any individual, including an advisor, engaged by the Company or a Parent or Subsidiary to render services to such entity.
For the avoidance of doubt, the term “Consultant” shall not include any entity or any non-natural person.

 

(l)            “Director”
means a member of the Board.

 

(m)          “Disability”
means total and permanent disability as defined in Code Section 22(e)(3), provided that in the case of Awards other than Incentive
Stock Options, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance
with uniform and non-discriminatory standards adopted by the Administrator from time to time.

 

(n)           “Employee”
means any person, including officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. Neither
service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute “employment”
by the Company.

 

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

 

(p)           “Exchange
Program” means a program under which (i) outstanding Awards are surrendered or cancelled in exchange for Awards of the
same type (which may have higher or lower exercise prices and different terms), Awards of a different type, and/or cash, (ii) Participants
would have the opportunity to transfer any outstanding Awards to a financial institution or other person or entity selected by
the Administrator, and/or (iii) the exercise price of an outstanding Award is reduced or increased. The Administrator will determine
the terms and conditions of any Exchange Program in its sole discretion.

 

(q)           “Fair
Market Value” means, as of any date, the value of Common Stock determined as follows:

 

(i)           If
the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq
Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value will
be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system
on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

 

(ii)           If
the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value
of a Share will be the mean between the high bid and low asked prices for the Common Stock on the day of determination (or, if
no bids and asks were reported on that date, as applicable, on the last trading date such bids and asks were reported), as reported
in The Wall Street Journal or such other source as the Administrator deems reliable; or

 

(iii)           In
the absence of an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator.

 

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(r)            “Incentive
Stock Option” means an Option that by its terms qualifies and is otherwise intended to qualify as an incentive stock
option within the meaning of Code Section 422 and the regulations promulgated thereunder.

 

(s)           “Nonstatutory
Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock
Option.

 

(t)           “Option”
means a stock option granted pursuant to the Plan.

 

(u)           “Parent”
means a “parent corporation,” whether now or hereafter existing, as defined in Code Section 424(e).

 

(v)           “Participant”
means the holder of an outstanding Award.

 

(w)           “Period
of Restriction” means the period during which the transfer of Shares of Restricted Stock are subject to restrictions
and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the passage of time,
the achievement of target levels of performance, or the occurrence of other events as determined by the Administrator.

 

(x)           “Plan”
means this 2012 Equity Incentive Plan.

 

(y)           “Restricted
Stock” means Shares issued pursuant to an Award of Restricted Stock under Section 8 of the Plan, or issued pursuant
to the early exercise of an Option.

 

(z)           “Restricted
Stock Unit” means a bookkeeping entry representing an amount equal to the Fair Market Value of one Share, granted pursuant
to Section 9. Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.

 

(aa)         “Service
Provider” means an Employee, Director or Consultant.

 

(bb)         “Share”
means a share of the Common Stock, as adjusted in accordance with Section 13 of the Plan.

 

(cc)         “Stock
Appreciation Right” means an Award, granted alone or in connection with an Option, that pursuant to Section 7 is
designated as a Stock Appreciation Right.

 

(dd)         “Subsidiary”
means a “subsidiary corporation,” whether now or hereafter existing, as defined in Code Section 424(f).

 

		3.	Stock Subject to the Plan.

 

(a)           Stock
Subject to the Plan. Subject to the provisions of Section 13 of the Plan, the maximum aggregate number of Shares that may be
subject to Awards and sold under the Plan is 373,710 Shares. The Shares may be authorized but unissued, or reacquired Common Stock.

 

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(b)           Lapsed
Awards. If an Award expires or becomes unexercisable without having been exercised in full, is surrendered pursuant to an Exchange
Program, or, with respect to Restricted Stock or Restricted Stock Units, is forfeited to or repurchased by the Company due to the
failure to vest, the unpurchased Shares (or for Awards other than Options or Stock Appreciation Rights the forfeited or repurchased
Shares) which were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated).
With respect to Stock Appreciation Rights, only Shares actually issued pursuant to a Stock Appreciation Right will cease to be
available under the Plan; all remaining Shares under Stock Appreciation Rights will remain available for future grant or sale under
the Plan (unless the Plan has terminated). Shares that have actually been issued under the Plan under any Award will not be returned
to the Plan and will not become available for future distribution under the Plan; provided, however, that if Shares issued pursuant
to Awards of Restricted Stock or Restricted Stock Units are repurchased by the Company or are forfeited to the Company due to the
failure to vest, such Shares will become available for future grant under the Plan. Shares used to pay the exercise price of an
Award or to satisfy the tax withholding obligations related to an Award will become available for future grant or sale under the
Plan. To the extent an Award under the Plan is paid out in cash rather than Shares, such cash payment will not result in reducing
the number of Shares available for issuance under the Plan. Notwithstanding the foregoing and, subject to adjustment as provided
in Section 13, the maximum number of Shares that may be issued upon the exercise of Incentive Stock Options will equal the aggregate
Share number stated in Section 3(a), plus, to the extent allowable under Code Section 422 and the Treasury Regulations promulgated
thereunder, any Shares that become available for issuance under the Plan pursuant to Section 3(b).

 

(c)           Share
Reserve. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as will
be sufficient to satisfy the requirements of the Plan.

 

		4.	Administration of the Plan.

 

(a)           Procedure.

 

(i)           Multiple
Administrative Bodies. Different Committees with respect to different groups of Service Providers may administer the Plan.

 

(ii)           Other
Administration. Other than as provided above, the Plan will be administered by (A) the Board or (B) a Committee,
which Committee will be constituted to satisfy Applicable Laws.

 

(b)           Powers
of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties
delegated by the Board to such Committee, the Administrator will have the authority, in its discretion:

 

(i)           to
determine the Fair Market Value;

 

(ii)          to
select the Service Providers to whom Awards may be granted hereunder;

 

(iii)         to
determine the number of Shares to be covered by each Award granted hereunder;

 

(iv)         to
approve forms of Award Agreements for use under the Plan;

 

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(v)          to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and
conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised (which may be based
on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding
any Award or the Shares relating thereto, based in each case on such factors as the Administrator will determine;

 

(vi)         to
institute and determine the terms and conditions of an Exchange Program;

 

(vii)        to
construe and interpret the terms of the Plan and Awards granted pursuant to the Plan;

 

(viii)       to
prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of satisfying applicable foreign laws or for qualifying for favorable tax treatment under applicable
foreign laws;

 

(ix)          to
modify or amend each Award (subject to Section 18(c) of the Plan), including but not limited to the discretionary authority
to extend the post-termination exercisability period of Awards and to extend the maximum term of an Option (subject to Section
6(d));

 

(x)           to
allow Participants to satisfy withholding tax obligations in a manner prescribed in Section 14;

 

(xi)          to
authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted
by the Administrator;

 

(xii)         to
allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that otherwise would be due to such Participant
under an Award; and

 

(xiii)        to
make all other determinations deemed necessary or advisable for administering the Plan.

 

(c)           Effect
of Administrator’s Decision. The Administrator’s decisions, determinations and interpretations will be final and
binding on all Participants and any other holders of Awards.

 

5.             Eligibility.
Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, and Restricted Stock Units may be granted to Service Providers.
Incentive Stock Options may be granted only to Employees.

 

6.             Stock
Options.

 

(a)           Grant
of Options. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant
Options in such amounts as the Administrator, in its sole discretion, will determine.

 

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(b)           Option
Agreement. Each Award of an Option will be evidenced by an Award Agreement that will specify the exercise price, the term of
the Option, the number of Shares subject to the Option, the exercise restrictions, if any, applicable to the Option, and such other
terms and conditions as the Administrator, in its sole discretion, will determine.

 

(c)           Limitations.
Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. Notwithstanding
such designation, however, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock
Options are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and any
Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such Options will be treated as Nonstatutory Stock Options.
For purposes of this Section 6(c), Incentive Stock Options will be taken into account in the order in which they were granted,
the Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares is granted, and calculation
will be performed in accordance with Code Section 422 and Treasury Regulations promulgated thereunder.

 

(d)           Term
of Option. The term of each Option will be stated in the Award Agreement; provided, however, that the term will be no more
than ten (10) years from the date of grant thereof. In the case of an Incentive Stock Option granted to a Participant who, at the
time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be five (5) years
from the date of grant or such shorter term as may be provided in the Award Agreement.

 

(e)           Option
Exercise Price and Consideration.

 

(i)           Exercise
Price. The per Share exercise price for the Shares to be issued pursuant to the exercise of an Option will be determined by
the Administrator, but will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.
In addition, in the case of an Incentive Stock Option granted to an Employee who owns stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will
be no less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant. Notwithstanding the foregoing
provisions of this Section 6(e)(i), Options may be granted with a per Share exercise price of less than one hundred percent
(100%) of the Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner consistent
with, Code Section 424(a).

 

(ii)          Waiting
Period and Exercise Dates. At the time an Option is granted, the Administrator will fix the period within which the Option
may be exercised and will determine any conditions that must be satisfied before the Option may be exercised.

 

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(iii)         Form
of Consideration. The Administrator will determine the acceptable form of consideration for exercising an Option, including
the method of payment. In the case of an Incentive Stock Option, the Administrator will determine the acceptable form of consideration
at the time of grant. Such consideration may consist entirely of: (1) cash; (2) check; (3) promissory note, to the extent permitted
by Applicable Laws, (4) other Shares, provided that such Shares have a Fair Market Value on the date of surrender equal to the
aggregate exercise price of the Shares as to which such Option will be exercised and provided further that accepting such Shares
will not result in any adverse accounting consequences to the Company, as the Administrator determines in its sole discretion;
(5) consideration received by the Company under cashless exercise program (whether through a broker or otherwise) implemented by
the Company in connection with the Plan; (6) by net exercise, (7) such other consideration and method of payment for the issuance
of Shares to the extent permitted by Applicable Laws, or (8) any combination of the foregoing methods of payment. In making its
determination as to the type of consideration to accept, the Administrator will consider if acceptance of such consideration may
be reasonably expected to benefit the Company.

 

(f)           Exercise
of Option.

 

(i)           Procedure
for Exercise; Rights as a Stockholder. Any Option granted hereunder will be exercisable according to the terms of the Plan
and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. An Option
may not be exercised for a fraction of a Share.

 

An Option will be deemed
exercised when the Company receives: (i) notice of exercise (in such form as the Administrator may specify from time to time)
from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is
exercised (together with applicable tax withholding). Full payment may consist of any consideration and method of payment authorized
by the Administrator and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option will be issued
in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or her spouse. Until
the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent
of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Shares
subject to an Option, notwithstanding the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly
after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the
date the Shares are issued, except as provided in Section 13 of the Plan.

 

Exercising an Option
in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option,
by the number of Shares as to which the Option is exercised.

 

(ii)          Termination
of Relationship as a Service Provider. If a Participant ceases to be a Service Provider, other than upon the Participant’s
termination as the result of the Participant’s death or Disability, the Participant may exercise his or her Option within
thirty (30) days of termination, or such longer period of time as is specified in the Award Agreement (but in no event later than
the expiration of the term of such Option as set forth in the Award Agreement) to the extent that the Option is vested on the date
of termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as
to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination
the Participant does not exercise his or her Option within the time specified by the Administrator, the Option will terminate,
and the Shares covered by such Option will revert to the Plan.

 

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(iii)         Disability
of Participant. If a Participant ceases to be a Service Provider as a result of the Participant’s Disability, the Participant
may exercise his or her Option within six (6) months of termination, or such longer period of time as is specified in the Award
Agreement (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement) to the extent
the Option is vested on the date of termination. Unless otherwise provided by the Administrator, if on the date of termination
the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert
to the Plan. If after termination the Participant does not exercise his or her Option within the time specified herein, the Option
will terminate, and the Shares covered by such Option will revert to the Plan.

 

(iv)         Death
of Participant. If a Participant dies while a Service Provider, the Option may be exercised within six (6) months following
the Participant’s death, or within such longer period of time as is specified in the Award Agreement (but in no event later
than the expiration of the term of such Option as set forth in the Award Agreement) to the extent that the Option is vested on
the date of death, by the Participant’s designated beneficiary, provided such beneficiary has been designated prior to the
Participant’s death in a form acceptable to the Administrator. If no such beneficiary has been designated by the Participant,
then such Option may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom
the Option is transferred pursuant to the Participant’s will or in accordance with the laws of descent and distribution.
Unless otherwise provided by the Administrator, if at the time of death Participant is not vested as to his or her entire Option,
the Shares covered by the unvested portion of the Option will immediately revert to the Plan. If the Option is not so exercised
within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

 

		7.	Stock Appreciation Rights.

 

(a)           Grant
of Stock Appreciation Rights. Subject to the terms and conditions of the Plan, a Stock Appreciation Right may be granted to
Service Providers at any time and from time to time as will be determined by the Administrator, in its sole discretion.

 

(b)           Number
of Shares. The Administrator will have complete discretion to determine the number of Shares subject to any Award of Stock
Appreciation Rights.

 

(c)           Exercise
Price and Other Terms. The per Share exercise price for the Shares that will determine the amount of the payment to be received
upon exercise of a Stock Appreciation Right as set forth in Section 7(f) will be determined by the Administrator and will be no
less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. Otherwise, the Administrator, subject
to the provisions of the Plan, will have complete discretion to determine the terms and conditions of Stock Appreciation Rights
granted under the Plan.

 

(d)           Stock
Appreciation Right Agreement. Each Stock Appreciation Right grant will be evidenced by an Award Agreement that will specify
the exercise price, the term of the Stock Appreciation Right, the conditions of exercise, and such other terms and conditions as
the Administrator, in its sole discretion, will determine.

 

(e)           Expiration
of Stock Appreciation Rights. A Stock Appreciation Right granted under the Plan will expire upon the date determined by the
Administrator, in its sole discretion, and set forth in the Award Agreement. Notwithstanding the foregoing, the rules of Section
6(d) relating to the maximum term and Section 6(f) relating to exercise also will apply to Stock Appreciation Rights.

 

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(f)           Payment
of Stock Appreciation Right Amount. Upon exercise of a Stock Appreciation Right, a Participant will be entitled to receive
payment from the Company in an amount determined by multiplying:

 

(i)            The
difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times

 

(ii)           The
number of Shares with respect to which the Stock Appreciation Right is exercised.

 

At the discretion of
the Administrator, the payment upon Stock Appreciation Right exercise may be in cash, in Shares of equivalent value, or in some
combination thereof.

 

		8.	Restricted Stock.

 

(a)           Grant
of Restricted Stock. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time,
may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion, will determine.

 

(b)           Restricted
Stock Agreement. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction,
the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, will determine.
Unless the Administrator determines otherwise, the Company as escrow agent will hold Shares of Restricted Stock until the restrictions
on such Shares have lapsed.

 

(c)           Transferability.
Except as provided in this Section 8 or as the Administrator determines, Shares of Restricted Stock may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction.

 

(d)           Other
Restrictions. The Administrator, in its sole discretion, may impose such other restrictions on Shares of Restricted Stock as
it may deem advisable or appropriate.

 

(e)           Removal
of Restrictions. Except as otherwise provided in this Section 8, Shares of Restricted Stock covered by each Restricted Stock
grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period of Restriction or
at such other time as the Administrator may determine. The Administrator, in its discretion, may accelerate the time at which any
restrictions will lapse or be removed.

 

(f)           Voting
Rights. During the Period of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder may exercise
full voting rights with respect to those Shares, unless the Administrator determines otherwise.

 

(g)           Dividends
and Other Distributions. During the Period of Restriction, Service Providers holding Shares of Restricted Stock will be entitled
to receive all dividends and other distributions paid with respect to such Shares, unless the Administrator provides otherwise.
If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability
and forfeitability as the Shares of Restricted Stock with respect to which they were paid.

 

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(h)           Return
of Restricted Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which restrictions have
not lapsed will revert to the Company and again will become available for grant under the Plan.

 

		9.	Restricted Stock Units.

 

(a)           Grant.
Restricted Stock Units may be granted at any time and from time to time as determined by the Administrator. After the Administrator
determines that it will grant Restricted Stock Units, it will advise the Participant in an Award Agreement of the terms, conditions,
and restrictions related to the grant, including the number of Restricted Stock Units.

 

(b)           Vesting
Criteria and Other Terms. The Administrator will set vesting criteria in its discretion, which, depending on the extent to
which the criteria are met, will determine the number of Restricted Stock Units that will be paid out to the Participant. The Administrator
may set vesting criteria based upon the achievement of Company-wide, business unit, or individual goals (including, but not limited
to, continued employment or service), or any other basis determined by the Administrator in its discretion.

 

(c)           Earning
Restricted Stock Units. Upon meeting the applicable vesting criteria, the Participant will be entitled to receive a payout
as determined by the Administrator. Notwithstanding the foregoing, at any time after the grant of Restricted Stock Units, the Administrator,
in its sole discretion, may reduce or waive any vesting criteria that must be met to receive a payout.

 

(d)           Form
and Timing of Payment. Payment of earned Restricted Stock Units will be made as soon as practicable after the date(s) determined
by the Administrator and set forth in the Award Agreement. The Administrator, in its sole discretion, may settle earned Restricted
Stock Units in cash, Shares, or a combination of both.

 

(e)           Cancellation.
On the date set forth in the Award Agreement, all unearned Restricted Stock Units will be forfeited to the Company.

 

10.           Compliance
With Code Section 409A. Awards will be designed and operated in such a manner that they are either exempt from the application
of, or comply with, the requirements of Code Section 409A, except as otherwise determined in the sole discretion of the Administrator.
The Plan and each Award Agreement under the Plan is intended to meet the requirements of Code Section 409A and will be
construed and interpreted in accordance with such intent, except as otherwise determined in the sole discretion of the Administrator.
To the extent that an Award or payment, or the settlement or deferral thereof, is subject to Code Section 409A the Award will
be granted, paid, settled or deferred in a manner that will meet the requirements of Code Section 409A, such that the grant,
payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Section 409A.

 

11.           Leaves
of Absence/Transfer Between Locations. Unless the Administrator provides otherwise, vesting of Awards granted hereunder will
be suspended during any unpaid leave of absence. A Participant will not cease to be an Employee in the case of (i) any leave
of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent,
or any Subsidiary. For purposes of Incentive Stock Options, no such leave may exceed three (3) months, unless reemployment upon
expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by
the Company is not so guaranteed, then six (6) months following the first (1st) day of such leave, any Incentive Stock
Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a
Nonstatutory Stock Option.

 

    	 	-11-	 

     

    

 

		12.	Limited Transferability of Awards.

 

(a)           Unless
determined otherwise by the Administrator, Awards may not be sold, pledged, assigned, hypothecated, or otherwise transferred in
any manner other than by will or by the laws of descent and distribution, and may be exercised, during the lifetime of the Participant,
only by the Participant. If the Administrator makes an Award transferable, such Award may only be transferred (i) by will, (ii)
by the laws of descent and distribution, or (iii) as permitted by Rule 701 of the Securities Act of 1933, as amended (the “Securities
Act”).

 

(b)           Further,
until the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, or after the Administrator
determines that it is, will, or may no longer be relying upon the exemption from registration under the Exchange Act as set forth
in Rule 12h-1(f) promulgated under the Exchange Act, an Option, or prior
to exercise, the Shares subject to the Option, may not be pledged, hypothecated or otherwise transferred or disposed of,
in any manner, including by entering into any short position, any “put equivalent position” or any “call equivalent
position” (as defined in Rule 16a-1(h) and Rule 16a-1(b) of the Exchange Act, respectively), other than to (i) persons who
are “family members” (as defined in Rule 701(c)(3) of the Securities Act) through gifts or domestic relations orders,
or (ii) to an executor or guardian of the Participant upon the death or disability of the Participant. Notwithstanding the foregoing
sentence, the Administrator, in its sole discretion, may determine to permit transfers to the Company or in connection with a Change
in Control or other acquisition transactions involving the Company to the extent permitted by Rule 12h-1(f).

 

		13.	Adjustments; Dissolution or Liquidation; Merger or Change
in Control.

 

(a)           Adjustments.
In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property),
recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase,
or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the
Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended
to be made available under the Plan, will adjust the number and class of Shares that may be delivered under the Plan and/or the
number, class, and price of Shares covered by each outstanding Award; provided, however, that the Administrator will make such
adjustments to an Award required by Section 25102(o) of the California Corporations Code to the extent the Company is relying upon
the exemption afforded thereby with respect to the Award.

 

(b)           Dissolution
or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator will notify each
Participant as soon as practicable prior to the effective date of such proposed transaction. To the extent it has not been previously
exercised, an Award will terminate immediately prior to the consummation of such proposed action.

 

    	 	-12-	 

     

    

 

(c)           Merger
or Change in Control. In the event of a merger or Change in Control, each outstanding Award will be treated as the Administrator
determines (subject to the provisions of the following paragraph) without a Participant’s consent, including, without limitation,
that (i) Awards will be assumed, or substantially equivalent Awards will be substituted, by the acquiring or succeeding corporation
(or an affiliate thereof) with appropriate adjustments as to the number and kind of shares and prices; (ii) upon written notice
to a Participant, that the Participant’s Awards will terminate upon or immediately prior to the consummation of such merger
or Change in Control; (iii) outstanding Awards will vest and become exercisable, realizable, or payable, or restrictions applicable
to an Award will lapse, in whole or in part prior to or upon consummation of such merger or Change in Control, and, to the extent
the Administrator determines, terminate upon or immediately prior to the effectiveness of such merger or Change in Control; (iv)
(A) the termination of an Award in exchange for an amount of cash and/or property, if any, equal to the amount that would have
been attained upon the exercise of such Award or realization of the Participant’s rights as of the date of the occurrence
of the transaction (and, for the avoidance of doubt, if as of the date of the occurrence of the transaction the Administrator determines
in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’s
rights, then such Award may be terminated by the Company without payment), or (B) the replacement of such Award with other
rights or property selected by the Administrator in its sole discretion; or (v) any combination of the foregoing. In taking any
of the actions permitted under this subsection 13(c), the Administrator will not be obligated to treat all Awards, all Awards held
by a Participant, or all Awards of the same type, similarly.

 

In the event that the
successor corporation does not assume or substitute for the Award (or portion thereof), the Participant will fully vest in and
have the right to exercise all of his or her outstanding Options and Stock Appreciation Rights, including Shares as to which such
Awards would not otherwise be vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse,
and, with respect to Awards with performance-based vesting, all performance goals or other vesting criteria will be deemed achieved
at one hundred percent (100%) of target levels and all other terms and conditions met. In addition, if an Option or Stock Appreciation
Right is not assumed or substituted in the event of a merger or Change in Control, the Administrator will notify the Participant
in writing or electronically that the Option or Stock Appreciation Right will be exercisable for a period of time determined by
the Administrator in its sole discretion, and the Option or Stock Appreciation Right will terminate upon the expiration of such
period.

 

For the purposes of this
subsection 13(c), an Award will be considered assumed if, following the merger or Change in Control, the Award confers the right
to purchase or receive, for each Share subject to the Award immediately prior to the merger or Change in Control, the consideration
(whether stock, cash, or other securities or property) received in the merger or Change in Control by holders of Common Stock for
each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger
or Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent
of the successor corporation, provide for the consideration to be received upon the exercise of an Option or Stock Appreciation
Right or upon the payout of a Restricted Stock Unit, for each Share subject to such Award, to be solely common stock of the successor
corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the
merger or Change in Control.

 

    	 	-13-	 

     

    

 

Notwithstanding anything
in this Section 13(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance
goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s
consent; provided, however, a modification to such performance goals only to reflect the successor corporation’s post-Change
in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption.

 

Notwithstanding anything
in this Section 13(c) to the contrary, if a payment under an Award Agreement is subject to Code Section 409A and if the change
in control definition contained in the Award Agreement does not comply with the definition of “change of control” for
purposes of a distribution under Code Section 409A, then any payment of an amount that is otherwise accelerated under this Section
will be delayed until the earliest time that such payment would be permissible under Code Section 409A without triggering any penalties
applicable under Code Section 409A.

 

		14.	Tax Withholding.

 

(a)           Withholding
Requirements. Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company will have
the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy
federal, state, local, foreign or other taxes (including the Participant’s FICA obligation) required to be withheld with
respect to such Award (or exercise thereof).

 

(b)           Withholding
Arrangements. The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to time,
may permit a Participant to satisfy such tax withholding obligation, in whole or in part by (without limitation) (i) paying cash,
(ii) electing to have the Company withhold otherwise deliverable Shares having a Fair Market Value equal to the minimum statutory
amount required to be withheld, (iii) delivering to the Company already-owned Shares having a Fair Market Value equal to the statutory
amount required to be withheld, provided the delivery of such Shares will not result in any adverse accounting consequences, as
the Administrator determines in its sole discretion, or (iv) selling a sufficient number of Shares otherwise deliverable to
the Participant through such means as the Administrator may determine in its sole discretion (whether through a broker or otherwise)
equal to the amount required to be withheld. The amount of the withholding requirement will be deemed to include any amount which
the Administrator agrees may be withheld at the time the election is made, not to exceed the amount determined by using the maximum
federal, state or local marginal income tax rates applicable to the Participant with respect to the Award on the date that the
amount of tax to be withheld is to be determined. The Fair Market Value of the Shares to be withheld or delivered will be determined
as of the date that the taxes are required to be withheld.

 

15.           No
Effect on Employment or Service. Neither the Plan nor any Award will confer upon a Participant any right with respect to continuing
the Participant’s relationship as a Service Provider with the Company, nor will they interfere in any way with the Participant’s
right or the Company’s right to terminate such relationship at any time, with or without cause, to the extent permitted by
Applicable Laws.

 

16.           Date
of Grant. The date of grant of an Award will be, for all purposes, the date on which the Administrator makes the determination
granting such Award, or such other later date as is determined by the Administrator. Notice of the determination will be provided
to each Participant within a reasonable time after the date of such grant.

 

    	 	-14-	 

     

    

 

17.           Term
of Plan. Subject to Section 21 of the Plan, the Plan will become effective upon its adoption by the Board. Unless sooner terminated
under Section 18, it will continue in effect for a term of ten (10) years from the later of (a) the effective date of the Plan,
or (b) the earlier of the most recent Board or stockholder approval of an increase in the number of Shares reserved for issuance
under the Plan.

 

18.           Amendment
and Termination of the Plan.

 

(a)          Amendment
and Termination. The Board may at any time amend, alter, suspend or terminate the Plan.

 

(b)          Stockholder
Approval. The Company will obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply
with Applicable Laws.

 

(c)          Effect
of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan will impair the rights of any
Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing
and signed by the Participant and the Company. Termination of the Plan will not affect the Administrator’s ability to exercise
the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

 

19.          Conditions
Upon Issuance of Shares.

 

(a)          Legal
Compliance. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance
and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for the Company
with respect to such compliance.

 

(b)          Investment
Representations. As a condition to the exercise of an Award, the Company may require the person exercising such Award to represent
and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention
to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.

 

20.          Inability
to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, will relieve
the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority will not
have been obtained.

 

21.          Stockholder
Approval. The Plan will be subject to approval by the stockholders of the Company within twelve (12) months after the date
the Plan is adopted by the Board. Such stockholder approval will be obtained in the manner and to the degree required under Applicable
Laws.

 

    	 	-15-	 

     

    

 

22.          Information
to Participants. Beginning on the earlier of (i) the date that the aggregate number of Participants under this Plan is five
hundred (500) or more and the Company is relying on the exemption provided by Rule 12h-1(f)(1) under the Exchange Act and (ii)
the date that the Company is required to deliver information to Participants pursuant to Rule 701 under the Securities Act, and
until such time as the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, is no
longer relying on the exemption provided by Rule 12h-1(f)(1) under the Exchange Act or is no longer required to deliver information
to Participants pursuant to Rule 701 under the Securities Act, the Company shall provide to each Participant the information described
in paragraphs (e)(3), (4), and (5) of Rule 701 under the Securities Act not less frequently than every six (6) months with the
financial statements being not more than 180 days old and with such information provided either by physical or electronic delivery
to the Participants or by written notice to the Participants of the availability of the information on an Internet site that may
be password-protected and of any password needed to access the information. The Company may request that Participants agree to
keep the information to be provided pursuant to this section confidential. If a Participant does not agree to keep the information
to be provided pursuant to this section confidential, then the Company will not be required to provide the information unless otherwise
required pursuant to Rule 12h-1(f)(1) under the Exchange Act or Rule 701 of the Securities Act.

 

    	 	-16-Exhibit 10.12

 

AMENDED AND RESTATED

EXCLUSIVE SALES REPRESENTATIVE
AGREEMENT

 

THIS AMENDED
AND RESTATED EXCLUSIVE SALES REPRESENTATIVE AGREEMENT (the “Agreement”) dated May 20, 2021
(the “Effective Date”), is entered into by and between Tenon Medical, Inc., a Delaware corporation having a
place of business at 2110 Omega Road, Suite F, San Ramon, CA 94583 (“Company”) and SpineSource, Inc., a Missouri
corporation having a place of business at 17826 Edison Avenue, Chesterfield, MO 63005 (“Representative”), (each
herein referred to by name or individually, as a “Party,” or collectively, as the “Parties”)
for the purpose of defining the rights and duties of the Parties in connection with the representation by Representative of certain
Company products.

 

BACKGROUND

 

Company
and Representative previously entered into an “Exclusive Sales Representative Agreement,” dated April 27, 2020, as
amended on December 15, 2020 (the “Prior Agreement”), under which Representative received exclusive rights to
market, promote and distribute Company’s “Catamaran” product in the United States and Puerto Rico. Company believes
that the Prior Agreement is not conducive to its raising capital for expansion, which capital Company believes is necessary to
optimize the “Catamaran” product for full commercial launch and market expansion. Accordingly, the Parties have agreed
to amend, restate and supersede the Prior Agreement on the terms and conditions set forth below.

 

NOW, THEREFORE,
for good and valuable consideration, the Parties hereby agree as follows:

 

AGREEMENT

 

		1.	Definitions.

 

1.1           “affiliate”
means, with respect a specified entity, any other entity which Controls, is Controlled by or is under common Control with the specified
entity, but only for so long as such Control exists. For purposes of this definition, “Control” shall have the meaning
set forth in Section 1.3 below.

 

1.2           “Applicable
Laws” means all laws, ordinances, rules and regulations of any governmental entity or Regulatory Authority that apply
to the Products in the Territory or otherwise to the activities contemplated under this Agreement, including without limitation
(i) all applicable federal, state and local laws, rules and regulations; (ii) the U.S. Federal Food, Drug and Cosmetic Act; and
(iii) regulations and guidelines of the U.S. Food and Drug Administration (“FDA”) and other Regulatory Authorities.

 

1.3           “Acquire”
or “Acquisition” means (a) the acquisition of Control of Company, whether in one or a series of related transactions,
by a Third Party by way of merger, consolidation or other business combination; (b) the acquisition by a Third Party of more than
fifty percent (50%) of the capital stock of Company in one or a series of related transactions; (c) the acquisition by a Third
Party of all or substantially all of the business, assets, and/or liabilities of Company; and/or (d) any other transaction
or series of related transactions in which Control of Company is acquired by a Third Party. Notwithstanding the forgoing,
the term Acquisition shall not include: (a) any sale or assignment for the benefit of creditors, such as in connection with a
plan of liquidation or dissolution adopted by the Company’s Board of Directors; or (b) an equity financing or any other
transaction in which the stockholders that Control Company as of the date prior to the closing date of such transaction possess
Control of the surviving entity in such transaction immediately after the closing of such transaction; or (c) the Company’s
issuance of shares of its common stock in a registered initial public offering on any public exchange for the sole purpose for
working capital of the Company. The term “Control” means the possession, directly or indirectly, of the power to direct
or cause the direction of the management or policies of the company whether through ownership of voting securities, by contract
or otherwise.

 

    	 

     

    

 

1.4           “Acquisition
Bonus” shall be the amount calculated in accordance with Exhibit C to this Agreement.

 

1.5           “Calendar
Quarter” means a three-consecutive calendar month period beginning on any of January 1, April 1, July 1, or October 1.

 

1.6           “Closing
Date” has the meaning set forth in the Acquisition agreement between Company or its stockholders, on the one hand, and
the Third Party Acquiring the Company, on the other.

 

1.7           “Converted
Account(s)” means any Customer or group of Customers in the Territory for which Company and Representative mutually agree
to have a Company employee act as a sales representative after the Second Sales Year, and subject to the terms in Section 3.3 below.

 

1.8           “Customer”
means an end user customer that (i) is licensed under Applicable Laws to use the Products in the treatment of patients within the
Territory and (ii) purchases the Product for its own use in such manner; such as hospitals and physicians, but not individual patients,
not another product manufacturer or supplier, and not any distributor, reseller, or the like.

 

 1.9           “Exclusivity” has the meaning set forth in Section 2.1

 

1.10         “First
Commercial Sale” means the first invoiced Sale of the improved Product in the Territory by Representative, after Representative
has received at least 20 Product kits with sufficient inventory to meet the Sales Minimums for the First Sales Year.

 

1.11         “Second
Sales Year” means the two-year period of time commencing on the day on which First Commercial Sale of Product occurs
and ending on the day immediately prior to the second anniversary of such First Commercial Sale.

 

 1.12         “Force Majeure Event” has the meaning set forth in Section 17.7.

 

1.13         “MAA
Approval” means approval by the FDA of the MAA filed in the Territory for the Product.

 

1.14         “Marketing
Approval Application” or “MAA” means a 510(k) application filed with the FDA as more fully defined
in 21 C.F.R. Section 807.81 et. seq.

 

    	 

     

    

 

1.15         “Net
Sales” means the Product sales actually invoiced by the Company for the Sale of the Product during the Term, less deductions
for: (i) credits, allowances, discounts, refunds and rebates; (ii) trade, quantity or cash discounts; (iii) retroactive price reductions;
and (iv) sales, value- added and other taxes (including customs, duties and other governmental charges) paid by the Company.

 

1.16         “Proceeds”
means the total amount of cash, and any publicly traded stock, in each case actually received by the Company and/or the stockholders
of Company in connection with an Acquisition, all to the extent set forth in a written agreement entered into by Company or its
stockholders during the Term of this Agreement or during the nine (9) month period following the termination or expiration of the
Term of this Agreement (other than a termination of the Term by Company pursuant to Section 14.2. For clarity, such cash and stock
will be included in Proceeds only at the time received and owned by Company or such stockholders without restriction on liquidation
and other disposition. Company may, in its sole discretion, elect to treat the fair market value of the publicly traded stock (determined
as of the date the Acquisition is consummated) as Proceeds, rather than the actual shares. Proceeds shall not include the value
of any loans or any other consideration.

 

1.17         “Product”
means the Company product(s) set forth in Exhibit A. Products may be changed, abandoned, or added by Company in Company’s
sole discretion provided that Company uses commercially reasonable efforts to provide thirty (30) days prior written notice to
Representative, and Representative’s rights herein shall extend to any new Company product that replaces, improves or modifies
the products set forth on Exhibit A, and such products shall be deemed “Products” hereunder.

 

1.18         “Regulatory
Authorities” means any federal, state, or local regulatory agency, department, bureau or other governmental entity involved
in regulating any aspect of the conduct, development, manufacture, market approval, sale, promotion, distribution, packaging or
use of the Products, including without limitation the FDA.

 

1.19         “Sale”
with respect to a unit of Product, means and will be considered complete only after all of the following have occurred: (i) a purchase
order has been received by Company from a Customer in the Territory for the unit of Product; (ii) Company and such Customer have
agreed upon the terms and conditions under which such unit of Product will be sold by Company to Customer; the purchase order has
been accepted by Company for such unit in writing and the purchase order is no longer subject to revocation or cancellation; and
(iii) the unit of Product has been delivered to and accepted by the Customer and the Company may invoice the Customer.

 

 1.20         “Sales Minimums” has the meaning set forth in Section 3.1.

 

 1.21         “Term” has the meaning set forth in Section 14.1.

 

 1.22         “Territory” means the United States of America and Puerto Rico.

 

 1.23         “Third Party” means a person or entity other than a Party to this Agreement.

 

    	 

     

    

 

1.24         “TTM
Commission” means, with respect to a Converted Account, the total aggregate amount of commission accrued or actually
paid by Company to Representative under Section 4.1 of this Agreement on Sales of Product by Company to the Converted Account
in the twelve-month period immediately preceding the effective date on which Company makes a Company employee a sales representative
for the Converted Account; provided however in the event that the Customer or Customers of a Converted Account have been active
for less than twelve-months, such total amount of commissions accrued or actually paid by Company shall be annualized.

 

		2.	Appointment and Authority of Representative.

 

2.1           Sales
Representative Appointment. Subject to the terms and conditions of this Agreement, Company appoints Representative as its exclusive
sales representative for marketing, sale, and support of the Products to Customers in the Territory, and Representative accepts
the appointment and agrees to use all diligent efforts to market, promote and maximize the Sales of the Products in the Territory.
Representative will be Company’s “exclusive” sales representative for such sales, but only to the extent of the
exclusivity expressly set forth in Section 3.1 below (“Exclusivity”). Representative shall have no power or
authority, express or implied, to make any commitment or incur any obligations on behalf of Company or to represent itself as an
agent of Company. Representative shall not solicit orders or promote Products to any person or entity other than a Customer.

 

2.2           Conversion
to Direct Sales Representatives. At all times after the end of the Second Sales Year, Company and Representative may mutually
agree to have the Company’s employees act as direct sales representatives for the Product in the Territory for Converted
Accounts, in lieu of Representative and its sales representatives. If the Parties mutually agree to a Converted Account, the Company
shall pay Representative two (2) times the TTM Commission for the Converted Account on the date that the Converted Account becomes
effective. Subject to the other terms of this Agreement, appointment by Company of an employee as a sales representative for a
Converted Account shall take effect on the date specified by Company and the Representative.

 

2.3           Territorial
Limitation. Representative shall not advertise, promote, or solicit orders for the Products outside the Territory without the
prior written consent of Company. Representative shall promptly submit to Company, for Company’s attention and handling,
the originals of all inquiries received by Company from potential Customers outside the Territory.

 

2.4           Reserved
Rights. Company grants, and Representative shall obtain, no intellectual property rights with respect to the Products. Company
reserves all rights not expressly granted herein.

 

2.5           No
Conflicts. Representative represents and warrants to Company that it does not currently represent or otherwise promote any
products that are competitive with, or provide similar functionality to, the Products (“Competing Products”).
Representative agrees that, during the Term and to the extent permitted under Applicable Law, it will not represent or promote
any Competing Products in the Territory unless expressly agreed upon beforehand, in writing, by both Parties. If Representative
represents or promotes products in the Territory that are Competing Products, such representation and promotion will be considered
a breach of this Agreement and Company shall have the right, at its sole discretion, to either (i) terminate this Agreement in
accordance with Section 14.2, or (ii) convert the appointment in Section 2.1 above to a non-exclusive arrangement, in each
case without prejudice to any rights or remedies available to Company under Applicable Law.

 

    	 

     

    

 

		3.	Sale of the Products.

 

3.1           Sales
Minimums; Product Exclusivity. Representative acknowledges that its assurances to Company that Representative can drive and
achieve the Product Sales minimums in accordance with Exhibit D in the Territory (the “Sales Minimums”)
are an essential part of the consideration that Company is expecting to receive from this Agreement and Representative. Accordingly,
if the Sales Minimums have not been achieved, at any time and for any reason (other than as a result of Company’s inability
to produce and deliver to Representative sufficient quantities of saleable Product), such failure shall be considered a material
breach of this Agreement by Representative for which Company is entitled to: (i) terminate this Agreement under Section 14.2 at
any time after the breach of this Agreement has not been cured within 60 days; or (ii) provided the material breach of this Agreement
has not been cured within 60 days, convert the appointment in Section 2.1 above to a non-exclusive agreement with mutually agreeable
terms to be discussed. So long as such a failure has not occurred and provided that Representative has not otherwise failed to
comply with a term or condition of this Agreement, and/or the Agreement has not been converted to a non-exclusive agreement, then
the Company agrees that it will not market, promote or sell Products for use in the Territory except in or in support of transactions
with the Representative.

 

3.2           Promotion
of the Products. Representative shall, at its own expense and according to the terms of this Agreement, use its best efforts
to maximize the Sales of the Products to Customers within the Territory including, without limitation, through such training, and
direct solicitation as it deems appropriate to meet its Sales Minimums; provided that any and all advertising and promotional activities
under this Agreement shall be conducted in accordance with Applicable Laws and the package insert for the Product to the extent
previously reviewed and approved by Company in writing. Company shall furnish Representative with reasonable quantities of samples,
literature and any other materials Company deems necessary for proper promotions and sales presentations of its Products in the
Territory. Representative may also develop and submit to Company for review and approval promotional and other materials based
upon information, materials or requirements provided or specified by Company. Representative shall not use or distribute any promotional
materials other than those that have been provided by Company, that are exact copies of those provided by Company, or that have
been approved by Company in writing (collectively, the “Materials”) for purposes of promoting the sale of the
Product under this Agreement, provided the approval by the Company is not unreasonably withheld or delayed. Furthermore, Representative
shall use the Materials solely for purposes of this Agreement. Other than the copies of Materials provided by Company or Materials
being used for any of the Company’s employee sales representatives, the Representative will bear all costs associated with
printing Materials. Company shall bear all costs associated with the development of the Materials, including but not limited to
artwork, layout, graphic design, images, animations and technical writing.

 

3.3           Prices
and Terms and Conditions of Sale. Company shall provide Representative copies of any current Product price lists, delivery
schedules, and standard terms and conditions of sale, as established from time to time for the Product. Notwithstanding such price
lists, delivery schedules and standard terms and conditions, the Company shall set the prices, delivery schedules, and other
terms and conditions of sale to Customers. All Sales shall be made in the name of Company and Representative will make reasonable
efforts to add Company to Customers’ approved vendor list.

 

    	 

     

    

 

3.4           Product
Orders. Representative shall use best efforts to maximize the volume of orders for Products that it solicits and obtains orders
from Customers in the Territory.

 

3.5           Payment
by Customers. Company will render all invoices directly to Customers, and all invoice payments shall be made directly to the
Company by Customers. Company shall have the sole right of credit approval or credit refusal for Customers in all cases. It is
understood by Company that full responsibility for all collection rests with Company.

 

3.6           Forecasting.
At least five (5) business days before the start of each Calendar Quarter, Representative shall provide Company with its best,
good-faith rolling forecast of the quantity of Product units that Representative expects to be delivered to Customers in the immediately
succeeding twelve (12) month period (each a “Forecast”). Each Forecast shall be provided in writing, in such
form and by electronic or other means as Company reasonably requires, and shall separately break out anticipated delivery volumes
for each Product by calendar month. The first such Forecast is set forth in Exhibit B. Representative shall use commercially
reasonable efforts to ensure that its Forecasts are as accurate as possible and, without Company’s consent, Customers’
orders do not significantly deviate from the Forecasts.

 

		4.	Compensation.

 

		4.1	Payments.

 

4.1.1           Commission
on Product Sales. On or before the fifteenth (15th) day of each calendar month, Company agrees to pay Representative
sixty percent (60%) of the Net Sales invoiced by Company from Product Sales that are completed in the Territory during the prior
calendar month. In the event Company receives Product returns representing all or part of the Net Sales, whether voluntarily or
under legal obligation, Company may deduct the commission, which was paid to the Representative for the Net Sales of the Product
so returned from future amounts owed to Representative hereunder. In the event a Customer does not pay an invoice for the Product
to the Company within one hundred twenty (120) days after the invoice due date, and Company has provided Representative with thirty
(30) days written notice of the past due and unpaid invoice, then Company may deduct from commissions then due, or in the future
due, the Representative an amount equal to the commission previously paid on said paid invoice. If Company subsequently collects
such unpaid balance, the commission so deducted shall be paid to Representative in full on the 15th day of the month following
the month in which it was paid.

 

4.1.2           Acquisition
of Company. Company shall keep Representative reasonably apprised of any potential Acquisition. Upon an Acquisition during
the Term or during the nine (9) month period following the expiration or termination of the Term (other than a termination by
Company pursuant to Section 14.2 [termination based on Representative’s uncured breach]), Company agrees to pay a bonus
to Representative (the “Acquisition Bonus”), in the amount and method calculated in accordance with Exhibit C.
Representative will not be entitled to any compensation under this Section 4.1.2 as a result of any decision not to sell or consider
the sale of Company, regardless of the reason. Such bonus shall be paid within ten (10) calendar days after Company’s or
its stockholder’s receipt of Proceeds from such Acquisition.

 

    	 

     

    

 

4.1.3           Expenses.
Except as otherwise set forth in Sections, 3.2, 5.4, 6.2, 6.5, 8.4 or 17.6, Articles 9, 11 or 12, or on Exhibit E, each
Party shall bear its own costs and expenses in connection with the performance of its obligations under this Agreement.

 

4.1.4           Currency.
All cash payment by shall be in United States dollars and shall be subject to all applicable governmental regulations and rulings.

 

		5.	Conduct of Business.

 

5.1           Representative’s
Conduct of Business. Representative shall use its best efforts and devote such time as may be necessary to sell and promote
the sale of Company’s Products within the Territory in accordance with its obligations hereunder, including sufficient to
meet the Sales Minimums in each Calendar Quarter. Representative represents and warrants to Company that it is in the business
of providing services of the type contemplated in this Agreement to clients in order to enhance the value of clients’ businesses
and sales, that Representative has the requisite skills and specialized knowledge to maximize the potential of Company’s
businesses and sales of Products in the Territory and to make the Product competitive in the market. Representative shall make
sufficient investments of time and money, and dedicate sufficient resources, to perform its obligations under this Agreement, meet
the Sales Minimums and otherwise maximize Sales of Products, and Customer satisfaction and goodwill related to Product, in the
Territory. Subject to the terms of this Agreement, Representative will conduct all of its business in its own name and in such
manner as it may see fit.

 

5.2           Services.
Representative shall provide the following services to all Customers in the Territory:

 

5.2.1           As
requested by Company in writing, following up on all inquiries from Customers and Customer prospects within the Territory and calling
on existing Customers and Customer prospects in the Territory at reasonably frequent intervals.

 

5.2.2           Distributing
current Product literature, catalogues, and other sales aids as is customary and reasonable in the medical device business.

 

5.2.3           Provided
the Company has given reasonable advanced written notice, attend Company sponsored national, regional, and/or local trade shows,
either at Company’s home office or at another location designated by Company.

 

 5.2.4           Training for the Product, all in a manner reasonably acceptable to Company.

 

5.2.5           Assistance,
support and involvement in Product evaluation, troubleshooting, and returns; and obtaining information from Customers related to
issues or concerns; all in a manner reasonably acceptable to Company.

 

    	 

     

    

 

5.2.6           Ensuring
positive, high quality Customer engagement, relationships and experiences related to the Product, including without limitation
Product quality, function and performance, and creating and maintaining at all times a positive, premium image and reputation of
Company and the Product with Customers and others.

 

5.2.7           Performing
such other services as set forth in Exhibit E or otherwise agreed to by Representative from time to time.

 

5.3           Support.
Without limiting Representative’s other responsibilities under this Agreement, any Customer complaints regarding Products
and support to be provided to Customers shall be handled as follows:

 

5.3.1           General
Product Support Services. Without limiting the Parties obligations under this Agreement, both Parties shall follow the requirements
published by FDA for CFR Title 21 Part 803 regarding Customer Complaint and Medical Device Reporting for the Products through the
Standard Operating Procedure outlined in Exhibit F hereto. communicate concerns and adverse events to Company, Representative,
and not Company, shall provide Level One Support (as defined in Exhibit F) on the Products to Customers. Such support shall
include providing assistance and information that Company reasonably requests to enable Company to provide Level Two Support (as
defined in Exhibit F) on the Products.

 

5.3.2           Training
Support by Company. Company will provide Product training to Representative. Company will also make available its training
modules for surgeons and Representative’s sales representatives and employees. Such modules will consist of Internet-based
training presentations that Representative can embed on its website and mobile devices.

 

 5.4           Orders and Inventory Management.

 

5.4.1           Representative
shall establish and maintain an inventory of the Products from Company on a consignment basis that is stored by
Representative at Representative’s facility located at 17826 Edison Avenue, Chesterfield, MO 63005, or any other
location at the sole discretion of the Representative, all in accordance with Applicable Law and the requirements of
Regulatory Authorities and Company as described in Exhibit G. Company retains all right, title, and interest in and to
all Products until such Products are (a) delivered to Customers pursuant to this Agreement; (b) used, lost, or damaged by
Representative, at which time Product will be deemed purchased by Representative and Representative shall pay Company for
such Product at the then manufacturing cost of the Product, upon invoice; or (c) returned to Company at Company’s
written request, provided the return will not negatively affect the Representative’s capacities to conduct business
with the Products or meet its Sales Minimum obligations herein. Representative agrees to (x) mark Product as Company’s
property, (y) segregate Products from other goods, and (z) use reasonable care to store, secure and protect the Products from
loss or damage and in compliance with all Applicable Laws. Representative agrees to maintain Products free and clear of all
liens and encumbrances of any nature and shall indemnify, reimburse and hold harmless Company from and against any loss or
damage caused by its failure to do so, upon Company’s request. Upon Company’s written request, Representative
agrees to return any Products in its possession to Company, provided the return will not negatively affect the
Representative’s capacities to conduct business with the Products or meets its Sales Minimum obligations herein.

 

    	 

     

    

 

5.4.2           Representative
shall order Products on behalf of Customers from Company by submitting written purchase orders of Customers identifying the number(s)
and type(s) of Products ordered, the requested delivery date(s). All orders for Products will be subject to acceptance by Company,
provided that Company will not unreasonably reject any purchase order for Products that meets the requirements of this Section
5.4.2. Company will accept or reject each order submitted by Representative within three (3) business days after receipt of the
order. Any order not rejected within this time period will be deemed accepted. Representative may use its standard purchase order
form to order Products hereunder; provided, however, the terms and conditions of this Agreement will supersede any conflicting
terms on such form.

 

5.4.3           Company
shall use commercially reasonable efforts to deliver Product to Representative by the delivery dates specified in Representative’s
purchase orders and shall promptly notify Representative upon learning of any backordered Product or any circumstance that could
lead to a Product being delivered later than the date in the applicable purchase order. Company shall bear all costs to ship the
Product to the Representative and shall provide the Representative a no-charge invoice for the Products and a Packing List for
what is contained in each order by item number, quantity, description and lot number(s).

 

5.4.4           Unless
otherwise agreed by the Parties in writing, all shipments shall be shipped to the Representative by the Company using Fed Ex or
United Parcel Service Standard delivery. The Company shall notify Representative via e-mail of tracking number(s) for each shipment.
Company will package to ship Products in accordance with the terms of this Agreement, Company’s customary practices for Products,
and according to FDA regulations for shipping implantable medical devices.

 

5.4.5           If
any Product is found to be defective by the Representative, it shall send the alleged defective product back to the Company, at
the Company’s expense.

 

5.4.6           Insurance.
Representative agrees to maintain an adequate business insurance policy to cover the full replacement value of all inventory of
Products in its possession in full force and name Company as additional insured thereon. Company shall maintain a minimum of $2,000,000
of product liability insurance coverage for the Products and name Representative as additional insured thereon. Upon request of
a Party, the other Party shall deliver a certificate of insurance evidencing the existence of the insurance policies required hereby.

 

		6.	Regulatory and Quality Assurance.

 

6.1           MAA
Approval. Representative agrees that Company shall own and retain all right, title and interest in and to any and all MAA Approvals
in the Territory.

 

    	 

     

    

 

6.2           Permits.
To the extent permitted under Applicable Law, Representative, at its own cost, shall be responsible for obtaining all
government and other approvals beyond MAA Approval, including permits, registrations, licenses, exemptions, exceptions and
other permissions, etc., necessary and useful to the sale to Customers and use of the Products in the Territory
(“Permits”). The Parties expressly agree that upon termination and/or expiration of this Agreement,
Representative shall, to the extent permitted by Applicable Law, immediately transfer all Permits to Company or its designee
(including naming Company or such designee as the permit holder) and provide all necessary assistance and information to
affect such transfer, provided the terms of this Agreement have been fulfilled by Company. Representative shall keep Company
informed with respect to such Permit acquisitions and will confer with Company as to all such Permits that Representative may
apply for under the terms of this Agreement. In the event of termination or expiration of this Agreement, and provided the
terms of this Agreement have been fulfilled by the Parties, Representative agrees to execute such documents, render such
assistance, and take such other action as Company may reasonably request, at Company’s expense, to apply for, register,
perfect, confirm, and protect Company’s rights in the Permits including (without limitation) an assignment of all such
Permit applications or Permits to Company or such other third party as Company may designate in writing.

 

6.3           Regulatory.
Representative shall comply, and shall establish and maintain record keeping and other practices and procedures related to the
Product, handling, packaging, labeling, and storage facilities, sufficient to cause and enable Company to comply, fully with any
and all Applicable Laws of the Territory as they relate to the Products, including maintaining and providing to Company a copy
of all records, reports, and other documentation and information that Company is required to maintain by Applicable Law related
to sales or marketing of the Product or Representative’s associated activities. Company acknowledges and agrees that it shall
not be entitled to the name or contact information of any Customer. Except to the extent otherwise required by Applicable Law,
all communications with Regulatory Authorities related to the traceability and/or tracking of Product shall be by Representative
(and, unless otherwise approved by Representative in writing, not Company). In addition, Representative shall monitor the appropriate
information sources closely for changes in such Applicable Laws, and other requirements relating to the Products in the Territory,
and shall make the appropriate changes in their procedures and notify Company promptly in writing of any and all such changes.
Representative acknowledges that its obligation to comply with all Applicable Laws of the Territory shall include, without limitation,
the following requirements:

 

6.3.1           Representative
shall maintain adequate written procedures for and records of inventory management of the Products, including handling, storage,
inspection, quality control, environmental conditions, and shipment, all in accordance with Applicable Laws and the requirements
of Regulatory Authorities and Company, as applicable. Adequate records of shipments to Customers shall be maintained for at least
five (5) years or until the end of the useful life of the Products, whichever is longer. The records shall be in such a form as
to enable Representative and Regulatory Authorities to trace the location of all regulated Products.

 

6.3.2           Representative
and Company shall comply with Applicable Laws with regard to timely reporting of adverse events and deficiencies of devices.
Representative shall promptly (and in any event within 24 hours after the Representative is notified of the adverse event)
notify Company of any such adverse events. Representative shall refer all written and oral complaints and concerns of any
kind concerning the Products to Company as promptly as possible, and according to FDA requirements, but in no event more than
forty-eight (48) hours following Representative’s receipt of such complaint or concern. Representative shall also
provide additional information and documentation in its possession or control as may be requested by Company within a
reasonable time period and as is required by FDA. Representative shall not respond directly to Customer complaints or
concerns regarding the performance of the Products, provided the Company is responding in a reasonable manner; instead,
Representative shall first contact Company and Company shall reply directly to any complaint or concern and openly
communicate all Customer complaint correspondence to the Representative. Representative and Company shall keep a record of
all Customer complaints and concerns in accordance with FDA requirements.

 

    	 

     

    

 

6.4           Quality
Assurance. Both Parties will maintain a characterized quality system in its organization, all facilities in which Product are
manufactured, shipped, stored or otherwise present, and in particular will ensure that: (i) the Parties will be able to proceed
to recall specific Products if Company so instructs; (ii) Representative keeps a file of the locations and conditions of all Products
including any relevant serial numbers in its Territory; and (iii) the Parties personnel performing under this Agreement have appropriate
technical skills, training, experience and expertise with respect to the Products to enable them to perform their responsibilities
set forth herein.

 

6.5           Recalls.
Representative agrees that, if Representative discovers or becomes aware of any fact, condition, circumstance or event (whether
actual or potential) concerning or related to any Product which may reasonably require a recall, market withdrawal, safety alert,
and/or field correction under Applicable Law (each, a “Recall”) for such Product, Representative shall promptly
communicate such fact, condition, circumstance or event to Company within twenty-four (24) hours. In the event (i) any Regulatory
Authority requests a Recall for any Product, (ii) a court of competent jurisdiction orders a Recall, or (iii) Company determines,
in its sole discretion, that a Recall of any Product should be conducted, Representative shall promptly implement any such Recall,
but in any event not later than forty-eight (48) hours following receipt of notice from Company. Company shall be solely responsible
for all Recall determinations, the costs of any such Recall, and shall control all aspects of the Recall process. Representative
may not initiate or conduct a Recall of any Product without prior written approval by Company. To the extent that it is necessary
to communicate with any non-governmental third party, including, but not limited to, the media, or any Customer concerning any
such fact, condition, circumstance or event, a Company official shall be the primary contact person concerning the remedial action,
unless otherwise agreed to by the Parties. Company shall be responsible for communicating with Regulatory Authorities, and for
submitting any necessary reports (e.g., corrections and removals reports) related to any Recall. Company, at its own expense, shall
repair or replace any Product under Recall ordered by Representative (whether sold to a Customer or in inventory), or any component
thereof, or provide a full refund to Representative or its Customers, as applicable, for any such Product, or component thereof.

 

6.6           Alterations.
Alterations to any Product that Company deems necessary or desirable may be made at any time by Company without prior notice to,
or consent of, Representative and such altered Product shall be deemed fully conforming to Company specifications. Upon making
such a change in specifications or designs, Company shall be under no obligation to replace or make such changes on any of the
Products previously shipped to Representative. Representative shall not make any alterations to any Product and Company shall be
under no obligation to make any alterations that may be requested by Representative.

 

6.7           Packaging.
Representative shall not repackage the Products, and shall only resell the Products in the same packaging as originally
received from Company, unless otherwise agreed upon by the Parties in writing. In addition, except for the addition of
information required by Applicable Law, Representative shall not re-label Products supplied to Representative by Company
hereunder without the prior written consent of Company. The Representative may add a sticker to the Product packing label
stating, “Distributed by” including the Representative’s company name, address and contact information,
provided the sticker does not obscure or alter the label on the Product packaging label. Any Product packing label changes
shall be approved by Company in writing.

 

    	 

     

    

 

7.            Audit
of Quality System. Company reserves the right for it or its representatives to audit Representative and to inspect Representative’s
facilities, operations, practices, procedures, inventory records, standard operating procedures and the like to ensure compliance
with the obligations of this Agreement and Applicable Law as it relates to the Product. Such audits may be performed at least once
a year, or at such greater frequency as may reasonably be needed by Company to comply with Applicable Laws, and provided the Company
has provided at least a thirty (30) day written notice of the audit to the Representative, and that the Company’s Chief Executive
Officer or his appointee can attend and oversee the audit. Representative shall maintain and make available to Company or its representatives
accurate records with respect to the Products, including quality control processes, procedures and results; inspection results
(if any); and any adverse event reports (if any). Representative shall also maintain a record of any Customer complaints or concerns
regarding either the Products or Company and immediately forward to Company all information regarding those complaints and concerns
(other than Customer names and contact information). Company shall have the right to inspect at reasonable times and during normal
business hours (and have Representative provide a copy to Company of) all of the foregoing. Notwithstanding anything in this Agreement
to the contrary, the Representative shall not be obligated to provide any detailed Customer information for audits in respect to
Customer names and locations, nor shall Company be entitled to the Representative’s financial records including but not limited
to financial reports other than information related to the calculation of Net Sales.

 

 8.             Intellectual Property.

 

8.1           Products.
Representative acknowledges that the Products, any accompanying documentation and the Materials are covered by intellectual property
rights owned or controlled by Company; and other than as expressly set forth in this Agreement, no license or other rights in such
intellectual property are granted to Representative, and all such rights are hereby expressly reserved by Company.

 

8.2           Trademarks.
During the Term (as defined below), Representative shall have the right to indicate to the public that it is an authorized representative
of Company’s products and to advertise within the Territory the Products under the trademarks, marks, and trade names that
Company may adopt from time to time (“Company’s Trademarks”). Company’s Trademarks shall at all
times remain the exclusive property of Company and all use of Company’s Trademarks shall inure to the exclusive benefit of
Company.

 

    	 

     

    

 

8.3           Trademark
Restrictions. All representations of Company’s Trademarks that Representative intends to use shall be exact copies
of those used by Company or shall first be submitted to Company for approval (which shall not be unreasonably withheld) of
design, color and other details. Representative shall not engage in any activity, which would adversely affect the name,
reputation or goodwill of Company or the Products. In addition, Representative shall fully comply with all reasonable
guidelines, if any, communicated by Company concerning the use of Company’s Trademarks. In no event may Representative
use or authorize any use of any of Company’s Trademarks in any domain name whether registered, owned, or operated by or
on behalf of Representative. Representative shall not challenge or assist others to challenge Company’s Trademarks or
the registration thereof or attempt to register, use, or enforce any trademarks, marks or trade names confusingly similar to
those of Company. Any violation of the foregoing shall be deemed a material breach of this Agreement that is incapable of
cure, entitling Company to terminate this Agreement immediately upon notice to Representative. Except as set forth in this
Article 8, nothing contained in this Agreement or performance hereunder shall grant or shall be deemed to grant to or vest in
Representative any right, title or interest in or to Company’s Trademarks. Upon termination of this Agreement,
Representative shall immediately cease to use any and all of Company’s Trademarks and all marks, trade names, and the
like that may be confusingly similar.

 

8.4           Work
Product. Representative agrees that all right, title, and interest in and to any works of authorship, Materials, notes, records,
drawings, designs, inventions, improvements, developments, discoveries, feedback, suggestions, and trade secrets conceived, discovered,
authored, invented, developed, made or reduced to practice by Representative, solely or in collaboration with others, arising out
of, or in connection with, the Product or performing its obligations under this Agreement and any copyrights, patents, trade secrets,
mask work rights or other intellectual property rights relating to the foregoing (collectively, “Work Product”),
are and shall be the sole property of the Company. Representative also agrees to promptly make full written disclosure to the Company
of all Work Product and shall deliver and assign (or cause to be assigned) and hereby irrevocably assigns fully to the Company
all right, title and interest in and to the Work Product. Further, Representative agrees to assist Company, or its designee, at
the Company’s expense, in every proper way to secure the Company’s rights in Work Product in any and all countries,
including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications,
specifications, oaths, assignments and all other instruments that the Company may deem necessary in order to apply for, register,
obtain, maintain, defend, and enforce such rights, and in order to deliver, assign and convey to the Company, its successors, assigns
and nominees the sole and exclusive right, title, and interest in and to all Work Product and testifying in a suit or other proceeding
relating to such Work Product.

 

 9.             Warranty and Disclaimers.

 

9.1           Limited
Product Warranty. Company’s standard Product warranty as of the Effective Date is set forth on Exhibit H. Exhibit
H may be updated by Company from time to time in its sole discretion by providing an updated Exhibit H to Representative
in writing. Any representation or warranty provided by Company is provided solely to Customers (and not to Representative). If
a Customer contacts Representative with a warranty claim, Representative shall assist Company with returns in accordance with Company’s
specified processes and procedures.

 

9.2             Company
Representations and Warranties. Company represents and warrants that (a) its entry into this Agreement is rightful and
does not violate any other agreement to which it is a party, (b) its conduct in performing its obligations under this
Agreement shall conform to all Applicable Laws, general and local industry and medical standards and good commercial
practices, and (c) it has all the necessary licenses, authorizations, approvals, registrations, permissions, and the like to
perform its obligations under this Agreement, including all necessary intellectual property rights to manufacture and sell
the Products in the Territory.

 

    	 

     

    

 

9.3           EXCEPT
AS OTHERWISE EXPRESSLY SET FORTH HEREIN, COMPANY MAKES NO WARRANTIES OR CONDITIONS TO REPRESENTATIVE, WHETHER EXPRESS, IMPLIED,
STATUTORY OR OTHERWISE, AND COMPANY SPECIFICALLY DISCLAIMS THE IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE.

 

9.4           No
Warranties. Representative shall make no representations or warranties with respect to the Products other than those specifically
authorized in writing by Company. Any other representation or warranty made by Representative to Customers with respect to the
Products shall not obligate Company in any way. Representative shall not modify or replace any components or otherwise attempt
to fix or modify any Products.

 

9.5           Representative
Representations and Warranties. Representative represents and warrants that (a) its entry into this Agreement is rightful and
does not violate any other Agreement to which it is a party, (b) its conduct in performing its obligations under this Agreement
shall conform to all Applicable Laws, general and local industry and medical standards and good commercial practices, and (c) it
has all the necessary licenses, authorizations, approvals, registrations, permissions, and the like to perform its obligations
under this Agreement in the Territory.

 

9.6           Sale
of Company. Company and its stockholders retain sole and absolute discretion in decisions regarding whether or not to sell
or pursue the sale of the Company, notwithstanding anything to the contrary. In particular, under no circumstances shall Company
or its stockholders be obligated to sell, or consider or discuss the sale, of Company with or to any party, and nothing in this
Agreement shall be construed to restrict or limit the right of Company or its stockholders to sell or discuss the sale of the Company
with any party or engage in any other transaction. All discussion, negotiation, and evaluation of potential Acquisitions shall
be conducted by Company on its own behalf, and Representative shall not take any actions that may result in Representative being
considered a broker-dealer as such term is defined under Applicable Laws.

 

9.7           Limitation
of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR COSTS OF PROCUREMENT OF SUBSTITUTE GOODS, LOST PROFITS,
OR ANY OTHER SPECIAL, PUNITIVE, CONSEQUENTIAL, INCIDENTAL, OR INDIRECT DAMAGES, HOWEVER CAUSED, AND WHETHER BASED ON CONTRACT,
TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY), OR ANY OTHER THEORY OF LIABILITY, REGARDLESS OF WHETHER SUCH PARTY HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, COMPANY’S AGGREGATE LIABILITY
TO REPRESENTATIVE OR ANY THIRD PARTY WITH RESPECT TO THE PRODUCTS AND/OR THE RELATIONSHIP DESCRIBED IN THIS AGREEMENT FOR ANY REASON
AND UPON ANY CAUSES OF ACTION SHALL NOT EXCEED THE AMOUNT OF COMMISSION PAID OR OWING TO REPRESENTATIVE UNDER THIS AGREEMENT.

 

    	 

     

    

 

10.           Confidential
Information. The Parties acknowledge that by reason of their relation-ship hereunder they will have access to certain information
and materials concerning each Party’s business, plans, customers, technology, and products that are confidential and of substantial
value to each Party, which value would be impaired if such information were disclosed to third parties (“Confidential
Information”). The Parties agree that it shall not use in any way for its own account or the account of any third party
other than to fulfill its express obligations under this Agreement, nor disclose to any third party, any such Confidential Information.
The Parties shall take every reasonable precaution to protect the confidentiality of such information. Upon request, the Parties
shall advise one another whether it considers any particular information or materials to be confidential. The Materials and all
marketing and financial information, business plans, sales information, and technical information, disclosed to each Party, whether
orally or in writing, and all Customer data and Customer lists, shall be deemed Confidential Information of the disclosing Party.
Representative shall not publish any technical description of the Products beyond the description published by Company or approved
by Company in the Materials. In the event of termination or expiration of this Agreement, there shall be no use or disclosure by
either Party of any Confidential Information or Materials, unless agreed to otherwise in writing.

 

11.           Indemnification
by Representative. Representative shall indemnify, defend, and hold harmless Company and its successors, directors, officers,
agents, employees, and affiliates from and against any causes of action, claims, demands, costs, liabilities, expenses, judgments,
proceedings, and damages (including Company’s attorney’s fees), arising out of or related to: (i) Representative’s
warranties or representations of the Products other than those warranties expressly authorized in writing by Company; (ii) Representative’s
performance of or failure to perform its duties under this Agreement; (iii) breach of any of Representative’s representations
and warranties; or (iii) the negligent, illegal or willful acts of Representative, its employees, or its agents. Company will promptly
deliver to Representative any notices or papers served upon it in any proceeding covered by this indemnity, and Representative
will defend the same at its expense. Company shall, however, have the right to participate in the defense at its own expense.

 

12.           Indemnification
by Company. Company shall indemnify, defend, and hold harmless Representative and its successors, directors, officers, agents,
employees, and affiliates from and against any causes of action, claims, demands, costs, liabilities, expenses, judgments, proceedings,
and damages (including Representative’s attorney’s fees), arising out of or related to: (i) Company’s warranties
or representations of the Products; (ii) any third party claim arising from an actual or alleged defect in a Product; (iii) breach
of any of Company’s representations and warranties; or (iv) the negligent, illegal or willful acts of Company, its employees,
or its agents. Representative will promptly deliver to Company any notices or papers served upon it in any proceeding covered by
this indemnity, and Company will defend the same at its expense. Representative shall, however, have the right to participate in
the defense at its own expense.

 

13.           Non-Assignment.
Representative shall not have the right to assign, delegate, subdivide or otherwise transfer any obligations or rights under this
Agreement without the prior express written consent of Company. Company may freely assign this Agreement; provided no such assignment
shall have the effect of canceling or circumventing the provisions herein dealing with Representative’s bonus upon an Acquisition.
Any attempted assignment in violation of this Article 13 shall be null and void.

 

    	 

     

    

 

		14.	Term and Termination.

 

14.1         Term.
The term of this Agreement shall commence on the Effective Date and shall continue in full force and effect for a period of five
(5) years commencing on the date of the First Commercial Sale, unless earlier terminated in accordance with the terms and conditions
of this Agreement. Thereafter, the Agreement shall renew automatically on the fifth anniversary of the first day of the First Commercial
Sale for an additional term of five (5) years (for a total term of ten (10) years) unless written notice of termination is given
by either Party to the other Party at least one-hundred eighty (180) days prior to the expiration of the then current Term or otherwise
in accordance with this Agreement (each such five-year term, the “Term”). Extension of the Term of this Agreement beyond
such ten (10) year period requires a written extension signed by both Parties.

 

14.2         Termination
by Either Party. Either Party may terminate the Term of this Agreement prior to its expiration and upon thirty (30) days prior
written notice if: (a) the other Party breaches any material term of this Agreement and the breaching Party has not cured the breach
within sixty (60) days of such notice; (b) the other Party is the subject of a liquidation or insolvency, or the filing of bankruptcy,
or similar proceeding(s) (provided that in the case of involuntary proceedings, such proceedings are not dismissed within sixty
(60) days of filing); or

(c) the other Party ceases to actively
engage in the business to which this Agreement relates.

 

		14.3	Effects of Expiration or Termination.

 

14.3.1         Payments.
Upon expiration or termination of the Term of this Agreement other than termination by Company under Section 14.2, subject to all
the provisions of this Agreement and Representative’s compliance with Section 14.3.2 below, amounts that became due or payable
during the Term of this Agreement or, in the case of any Acquisition Bonus, become earned during the nine (9) month period after
such expiration or termination, will be paid to Company or Representative, as the case may be, in accordance with Article 4. No
other fees shall be due or payable by Company or Representative after any such termination or expiration of this Agreement. Company’s
obligation to pay fees after the effective date of expiration or termination is subject to and conditional upon Representative’s
cooperation with any replacement representative. Either Party may withhold, for up to six (6) months, the payment of fees after
the effective date of expiration or termination if such Party reasonably determines that there may be sufficient credits or other
adjustments that warrant such action. If a Party is owed any amounts by the other Party, such Party shall have the right, in its
absolute discretion, to offset any fees payable by the other Party by such obligation owed to the other Party.

 

14.3.2         Return
of Materials. All documents and other tangible objects containing or representing Confidential Information, all
Materials, all Products, all documentation and files related to the Product (other than Customer names or contact
information), and all copies thereof that are in the possession or control of Representative shall be and remain the property
of Company and upon expiration or termination of the Term of this Agreement shall, at Company’s sole option, be
promptly returned to Company or its designee or destroyed (with proof of such destruction). Under no circumstances shall
Representative destroy or fail to provide documentation or records in a manner that results in a failure to comply with
Applicable Law. Representative’s use of Company’s Trademarks shall cease immediately upon termination or
expiration of this Agreement. Any advertisement or listing by Representative that (i) includes Company’s name used in
conjunction with Representative’s name or that otherwise suggests a business relationship between the two Parties; and
(ii) that appears in any telephone book, directory, public record or like publication shall be, to the extent within
Representative’s possession or control, removed by Representative as soon as possible, but no later than the subsequent
issue of such publication.

 

    	 

     

    

 

14.3.3         Representative
Claims. Upon termination or expiration of this Agreement, all claims of Representative against Company including, without limitation,
those pertaining to fees hereunder are hereby waived unless made in writing to Company by Representative within ninety (90) days
of when the fee would have been payable.

 

14.3.4         Survival.
The following provisions shall survive the termination or expiration of this Agreement for any reason: Sections 5.4.6, 8.1, 8.3,
8.4, 14.3, Articles 1, 4, 6, 9 (provided that Section 9.1 shall survive solely with respect to Products under warranty), 10, 11,
12, 13, 15, 16 and 17. All other rights and obligations of the Parties shall cease upon termination of this Agreement.

 

15.           Independent
Contractors. The relationship of the Parties established by this Agreement is that of independent contractors, and nothing
contained in this Agreement shall be construed to (i) give either Party the power to direct and control the day-to-day activities
of the other; (ii) constitute the Parties as partners, joint venturers, co-owners or otherwise as participants in a joint venture
or common undertaking; or (iii) allow Representative to create or assume any obligation on behalf of Company for any purpose whatsoever.
All financial and other obligations associated with Representative’s business are the sole responsibility of Representative.
Representative shall be solely responsible for, and shall indemnify and hold Company free and harmless from, any and all claims,
damages or lawsuits (including Company’s attorneys’ fees) arising out of the acts of Representative, its employees
or its agents. Neither Representative, nor any individual whose compensation for services is paid for by Representative, is in
any way employed by Company, nor shall any of them be deemed to be employed by Company for any purpose. Representative accepts
exclusive liability for any payroll taxes or contributions according to Federal, state or local tax laws with respect to sales
agents and/or other individuals whose compensation is paid by Representative.

 

16.           Notice.
Any notice required or permitted to be given or made under this Agreement by either Party shall be in writing and delivered by
overnight courier or by registered or certified mail, postage prepaid, or by facsimile, which facsimile is promptly confirmed,
in writing, by registered or certified mail, postage prepaid. Notices will be considered to have been given (i) one (1) day after
delivery to an overnight courier, (ii) three (3) business days after deposit in the mail as set forth above or (iii) upon receipt
of actual delivery by facsimile. All notices shall be delivered to the addresses indicated below (or to such other address as a
Party may specify by notice under this Agreement).

 

    	 

     

    

 

	
        Company:

        Tenon Medical, Inc.

        2110 Omega Road, Suite F San

        Ramon, CA 94583 Phone: (408)

        712-3313

        E-mail: rich@denovovc.com

        Attn: Rich Ferrari
	 	
        Representative:

        SpineSource, Inc.

        17826 Edison Avenue

        Chesterfield, MO 63005

        Phone: (314) 560-5019

        E-mail: t.mitchell@spinesource.com

        Attn: Thomas Mitchell

 

		17.	Miscellaneous.

 

17.1         Waiver;
Amendment. The failure of either Party to enforce its rights or the obligations of the other Party under this Agreement at
any time for any period shall not be construed as a waiver of such rights or obligations unless the waiver is evidenced in writing
and signed for on behalf of both Parties. Any modification or amendment of, or addition to, the terms of this Agreement shall not
be effective unless in a writing which is signed by an authorized officer of both Parties.

 

17.2         Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard
to the conflicts of laws provisions.

 

17.3         Severability.
If any provision of this Agreement is held to be void, invalid or unenforceable, the same shall be reformed to give the fullest
effect to the intention of the Parties when executing this Agreement while complying with Applicable Law or stricken if not so
conformable, so as not to affect the validity or enforceability of the remainder of this Agreement.

 

17.4         Dispute
Resolution. In the event of any dispute, controversy or claim between the Parties hereto arising out of this Agreement, the
Parties agree to attempt to resolve such dispute in good faith through direct negotiations for a period of thirty (30) days. Any
dispute, controversy or claim between the Parties hereto arising out of or relating to this Agreement which cannot be resolved
through direct negotiations shall be settled by binding arbitration in accordance with and subject to the then applicable rules
(“Rules”) of the Judicial Arbitration and Mediation Services (“JAMS”) and such arbitration
shall be administered by JAMS with a single arbitrator selected from a list of arbitrators proposed by JAMS in accordance with
the Rules. The arbitrator shall allow such discovery as is appropriate and consistent with the purposes of arbitration in accomplishing
fair, speedy and cost-effective resolution of disputes. The costs of the arbitration including the arbitrators’ fees shall
be shared equally by the Parties. Judgment upon the award rendered in any such arbitration may be entered in any court of competent
jurisdiction, or application may be made to such court for a judicial acceptance of the award and an enforcement, as the law of
such jurisdiction may require or allow. In any arbitration arising out of or related to this Agreement, the arbitrator shall award
to the prevailing party, if any, the costs and attorneys’ fees reasonably incurred by the prevailing party in connection
with the arbitration. If the arbitrator determines a party to be the prevailing party under circumstances where the prevailing
party won on some but not all of the claims and counterclaims, the arbitrator may award the prevailing party an appropriate percentage
of the costs and attorneys’ fees reasonably incurred by the prevailing party in connection with the arbitration. Unless
otherwise expressly agreed to by both Parties, such arbitration shall take place in Denver, Colorado.

 

    	 

     

    

 

17.5         Headings.
Headings herein are for convenience of reference only and shall in no way affect interpretation of this Agreement.

 

17.6         Registrations.
If this Agreement is required to be registered with any governmental authority in the Territory, Representative shall cause such
registration to be made and shall bear any expense or tax payable in respect thereof.

 

17.7         Force
Majeure. Any delay or failure of a Party to perform its obligations under this Agreement will be excused to the extent that
the delay or failure was caused directly by an event beyond such Party’s control, without such Party’s fault or negligence
and that by its nature could not have been foreseen by such Party or, if it could have been foreseen, was unavoidable (which events
may include natural disasters, epidemics, pandemics or other public health emergencies of local, national or international concern,
embargoes, explosions, riots, wars, acts of terrorism, strikes, labor stoppages or slowdowns or other industrial disturbances,
and shortage of adequate power or transportation facilities) (each a “Force Majeure Event”). A Party’s
financial inability to perform, changes in cost or availability of materials, components or services, market conditions, or supplier
actions or contract disputes will not excuse performance by a Party under this Section 17.7, except that the inability of Company
to provide Products shall excuse Representative’s failure to meet its Sales Minimum obligations. A Party intending to rely
upon this Section 17.7 shall give the other Party prompt written notice of any event or circumstance that is reasonably likely
to result in a Force Majeure Event, and the anticipated duration of such Force Majeure Event. Such Party shall use all reasonable
efforts to end the Force Majeure Event, ensure that the effects of any Force Majeure Event are minimized, and resume full performance
under this Agreement.

 

17.8         Entire
Agreement. This Agreement, and all exhibits attached hereto, constitute the entire understanding and contract between the Parties
and supersedes any and all prior and contemporaneous, oral or written representations, communications, understandings, and agreements
between the Parties with respect to the subject matter hereof. Notwithstanding the foregoing, to the extent the terms and conditions
of this Agreement conflict with the terms and conditions of any exhibit, the terms and conditions of this Agreement shall govern.
The Parties acknowledge and agree that neither of the Parties is entering into this Agreement on the basis of any representations
or promises not expressly contained herein. To the extent the Parties desire to add future services not contemplated by Section
5.2, the Parties agree such services will be set forth in writing in a future agreement or amendment.

 

17.9         Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but both of which together
shall constitute one and the same instrument.

 

[remainder of page left intentionally
blank; signature page follows]

 

    	 

     

    

 

THE TERMS
AND CONDITIONS OF THIS AGREEMENT ARE AGREED TO AND ACCEPTED BY:

 

TENON MEDICAL, INC.

 

	By:	/s/ Rich Ferrari	 
	Name:	Rich Ferrari	 
	Title:	Executive Chairman	 
	Date:	5/19/2021	 

 

SPINESOURCE, INC.

 

	By:	/s/ Tom Mitchell	 
	Name:	Tom Mitchell	 
	Title:	President & CEO	 
	Date:	5/21/2021	 

 

    	 

     

    

 

EXHIBIT
A

 

PRODUCTS

 

New and improved Catamaran Sacroiliac Joint Fusion System

 

    	 

     

    

 

EXHIBIT
B

 

INITIAL FORECAST

 

The Parties acknowledge that this Agreement is being
entered and executed during a Force Majeure identified as the COVID-19 Worldwide Pandemic. Market conditions currently exist that
make attainment of the Initial Forecast unknown due to the rapid and severe economic downturn in the U.S. economy accompanied by
federal, state and local governments placing a moratorium on elective surgeries, such as sacroiliac fixation and fusion where the
Product is utilized. As a result, the Parties acknowledge that the forecast may be adjusted accordingly, if necessary, by mutual
Addendum to this Agreement.

 

After the end of the Second Sales Year, if a Customer
in the Territory becomes a Converted Account, then the Initial Forecast below shall be reduced each year thereafter by: (i) the
annualized number of Product units sold to the Customer in the last twelve month period prior to it becoming a Converted Account,
plus (ii) a number of Product units equal to 16% of the number of Units in (i) above for each year with the sum totals being rounded
to the nearest whole number; plus (iii) for each subsequent year in the remaining term of the Agreement, a number of Product units
equal to 116% of the prior year’s reduction in units.

 

For example, if a Customer was converted on the first day
of the third year, and its annualized unit volume was 20 units, then the Sales Minimum for Year 3 would be reduced by 23
units (20 x 1.16 = 23.2 units); and Year 4 would be reduced by 27 units (23 x 1.16 = 26.7 units); and Year 5 would be reduced
by 31 units (27 x 1.16 = 31.3 units).

 

	Q1	 	18 units	 	Q1	 	221 units
	Q2	 	36 units	 	Q2	 	254 units
	Q3	 	53 units	 	Q3	 	269 units
	Q4	 	69 units	 	Q4	 	306 units
	Year 1: Total:	 	176 units	 	Year 4: Total:	 	1,050 units

 

	Q1	 	75 units	 	Q1	 	329 units
	Q2	 	95 units	 	Q2	 	361 units
	Q3	 	106 units	 	Q3	 	389 units
	Q4	 	136 units	 	Q4	 	496 units
	Year 2: Total:	 	412 units	 	Year 5: Total:	 	1,575 units

 

	Q1	 	145 units	 
	Q2	 	167 units	 
	Q3	 	183 units	 
	Q4	 	205 units	 
	Year 3: Total:	 	700 units	 

 

    	 

     

    

 

EXHIBIT C

 

CALCULATION OF ACQUISITION
BONUS

 

The Acquisition Bonus shall be calculated in the following
manner using the total aggregate US dollar value of all Proceeds received by Company and/or its shareholders from an Acquisition
of Company or the capital stock of the Company. For clarity, Proceeds received in the form of publicly traded stock shall be valued
in US dollars for purposes of calculating such total aggregate value.

 

(i)           seven percent
(7%) of the total aggregate dollar value of Proceeds received by Company and/or its shareholders from an Acquisition of Company
up to a value of one hundred seventy million US dollars (US$170,000,000); plus

 

(ii)           five percent
(5%) of the total aggregate dollar value of Proceeds received by Company and/or its shareholders from an Acquisition of Company
in excess of one hundred seventy million US dollars (US$170,000,000), but not in excess of three hundred million US dollars (US$300,000,000);
plus

 

(iii)           four
percent (4%) of the total aggregate dollar value of Proceeds received by Company and/or its shareholders from an Acquisition of
Company in excess of three hundred million US dollars (US$300,000,000), but not in excess of four hundred million US dollars (US$400,000,000);
plus

 

(iv)           three
percent (3%) of the total aggregate dollar value of Proceeds received by Company and/or its shareholders from an Acquisition of
Company in excess of four hundred million US dollars (US$400,000,000).

 

For example, if the total aggregate dollar value of
all Proceeds received by Company and/or its shareholders from an Acquisition of Company is six hundred million US dollars, the
Acquisition Bonus will equal:

 

(.07*$170M) + (0.05*$130M) + (.04*$100M) + (.03*$200M)
or twenty-eight million four hundred thousand US dollars (US$28,400,000)

 

In the event of an Acquisition of Company by a Third
Party, whether before or after any public offering of Company stock, Company (or its successor, assign, or such Third Party) has
the right to terminate this Agreement at any time thereafter by providing written notice to Representative so long as the Acquisition
Bonus paid to Representative is in an amount equal to or greater than six million US dollars (US$6,000,000). The effects of such
termination are outlined in Section 14.3.

 

    	 

     

    

 

EXHIBIT
D

 

SALES MINIMUMS

 

The Parties acknowledge that this Agreement is being
entered and executed during a Force Majeure identified as the COVID-19 Worldwide Pandemic. Market conditions currently exist that
make attainment of the Sales Minimums unknown due to the rapid and severe economic downturn in the U.S. economy, accompanied by
federal, state and local governments placing a moratorium on elective surgeries, such as sacroiliac fixation and fusion where the
Product is utilized.

 

As a result, the Parties acknowledge that the Sales
Minimums may be adjusted accordingly, if necessary, by mutual Addendum to this Agreement.

 

The Sales Minimums shall be seventy percent (70%)
of the Initial Forecast in Exhibit B herein and shall be measured and evaluated on a 3-calendar month basis (referred to as quarters)
as applicable to Paragraph 3.1 herein.

 

Making the absolute, critical assumption that the
new and improved Product is available to Representative in commercial quantities of 20 Product kits with sufficient inventory to
meet Sales Minimums, the first Sales Minimums shall become applicable commencing on the first day of a calendar quarter determined
by mutual written agreement between the Parties, but no later than six (6) months after the date of delivery of the 20 Product
kits with sufficient inventory to the Representative, and then every calendar quarter thereafter, unless agreed to otherwise in
writing.

 

When the 3-month unit sales results exceed any given
quarterly Sales Minimum, the net amount in excess shall count towards achieving the following 3-month Sales Minimum

 

    	 

     

    

 

EXHIBIT E

 

COSTS AND OTHER SERVICES

 

Paid Surgeon Consultants. The Company
shall pay all the costs and expenses of surgeon consultant fees, including Consultants which serve in a training capacity. The
Company shall pay for reasonable travel expenses for the surgeon consultant.

 

Training.

 

		1.	The Company shall pay for all the Training Costs and
expenses for all surgeons covered by its own direct sales force and its own direct sales representatives after the Second Sales
Year has been completed, unless agreed to otherwise in writing by the Parties.

 

		2.	With the exception of Point 1 of Training in this Exhibit
E and for the term of this Agreement, the Representative shall pay only the surgeon training costs limited to airfare, lodging,
ground transportation, entertainment and meals for surgeons attending Training. The Company shall pay for facility rentals and
fees, specimen fees, equipment fees (i.e., anatomy models, bone models, C-arm, O-arm, Navigation and Augmented Reality equipment
rentals and fees, PPE, etc.), lab tech fees and any other fee associated with use of specimens, equipment, models and facilities,
unless agreed to otherwise in writing.

 

    	 

     

    

 

EXHIBIT F

 

SUPPORT

 

The Representative will collect information for each
Complaint according to the requirements of CFR Title 21 Part 803 on the form attached to Exhibit F, the SpineSource Customer Complaint
Form, and submit it to the Company.

 

The Company will analyze the Complaint and follow
up with the requirements necessary to comply with CFR Title 21 Part 803 as required for Manufacturers.

 

The Parties agree to follow the Standard Operating
Procedure SOP-15: Customer Complaint Procedure, updated as required and necessary.

 

    	 

     

    

 

EXHIBIT
G

 

INVENTORY MANAGEMENT

 

The Parties shall utilize necessary inventory tracking
and traceability requirements as necessary to comply with FDA regulations governing the manufacture, packaging, quality, inspection
and distribution of Class I and Class II Medical Devices and Instruments.

 

The Representative shall follow its Standard Operating
Procedures for the distribution of domestically manufactured medical devices in its SOPs as follows and the Company shall be provided
access to the most recently updated versions of the following SOPs at any time upon written request.

 

A zip folder has been e-mailed to the Company from
the Representative on April 22, 2020, which Company has agreed to on file, containing the following SOPs and the necessary attachments
and flowcharts:

 

		1.	SOP-005: Document Controls

 

		2.	SOP-007: Identification and Traceability Rev. C

 

		3.	SOP-008: Product Acceptance Activities

 

		4.	SOP-009: Product Review

 

		5.	SOP-010: Non-conforming Product

 

		6.	SOP-011: Corrective and Preventive Action

 

		7.	SOP-012: Receiving, Handling and Storage

 

		8.	SOP-013: Shipping and Distribution

 

		9.	SOP-014: Records

 

		10.	SOP-015: Customer Complaint Procedure

 

    	 

     

    

 

EXHIBIT
H

 

CUSTOMER WARRANTY

 

To the extent permitted under Applicable Law, Company
warrants to Customer (and not to Representative) that the Products are free from defects in workmanship and materials and conform
to Company’s specifications at the time of delivery by Company to Customer. To the extent permitted under Applicable Law,
Company provides no other warranties of any kind, whether express or implied. Representative shall be responsible for handling
and managing all Customer warranty claims and returns for allegedly non-conforming Products in a manner reasonably acceptable to
Company. If a Customer contacts Company with a warranty claim, Company shall refer such Customer to Representative. Any warranty
made by Representative to its Customers with respect to the Products shall not obligate Company in any way and Representative shall
retain full responsibility for the performance of any warranties extended to the Customer. Subject to the foregoing and to the
warranty limitations below, upon Company’s confirmation of defects in workmanship or materials or a failure of a Product
to conform to Company’s specifications as warranted, Company will, in its sole discretion, either repair or replace the Product
(and/or any part or component thereof) or credit Representative’s account for the Product purchase price paid therefor.

 

Warranty Limitations. The warranties given by
Company shall not apply to Products that have been modified or altered in any manner by anyone other than Company, or to defects
caused (i) through no fault of Company during shipment to or from Customer; (ii) by the use or operation in an application or environment
other than that intended or recommended by Company; (iii) by service by anyone other than employees of, or persons approved in
writing by, Company; (iv) by accident, negligence, misuse, or other causes other than normal use; or (v) by storage, usage or handling
in any manner inconsistent with the Product label. Replacement Products supplied under this warranty shall carry only the unexpired
portion of the original warranty. Company shall not be liable for any adulteration or failure to meet the Product specifications
due to storage, handling, or packaging of the Products by Representative or its employees, consultants, or agents.

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