Document:

Exhibit 10.17

 

TENON MEDICAL, INC.

 

CONSULTING AGREEMENT

 

This Consulting Agreement (the “Agreement”)
is entered into on May 7, 2021 (the “Effective Date”) by and between Tenon Medical, Inc. (the “Company”)
and Richard Ferrari, an individual with an address at 19575 Three Oaks Way, Saratoga, CA 95070 (“Consultant”).
Company and Consultant are sometimes individually referred to as the “Party” and collectively as the “Parties.”

 

WHEREAS, Company desires to retain Consultant
as an independent contractor to perform consulting services for the Company and Consultant is willing to provide such services;

 

NOW THEREFORE, in consideration of the mutual
covenants and promises set forth below and for good and valuable consideration, sufficiency of which is acknowledged, the Parties
agree as follows:

 

1.           Consulting
Relationship. During the term of this agreement, Consultant will provide consulting services (the “Services”)
to the Company as described on Exhibit A attached to this Agreement. Consultant shall use Consultant’s best efforts
to perform the Services in a professional manner and in accordance with the degree of skill, care and diligence normally exercised
by recognized professional person or firms that supply services of similar nature.

 

2.           Fees.
As consideration for the Services to be provided by Consultant and other obligations, the Company will compensate Consultant
as described in Exhibit A to this Agreement. The Parties acknowledge and agree that the compensation set forth in Exhibit
A represents the fair market value of the Services provided by Consultant to the Company negotiated in an arms-length transaction.
As additional consideration for the Services, the Company will provide Consultant with such support facilities and space as may
be required in the Company’s judgment to enable Consultant to properly perform the Services.

 

3.           Expenses.
Consultant shall not be authorized to incur on behalf of the Company any expenses, without the prior written consent of the
Company’s President or the supervisor designated in Section 6 below. As a condition of receipt of reimbursement, Consultant
shall be required to submit to the Company reasonable evidence that the amount involved was expended and related to Services provided
under this Agreement.

 

4.           Term
and Termination. The term of this Agreement shall be for a period of three years from the Effective Date of this Agreement,
and may be renewed by mutual agreement of the parties; provided, however, that this Agreement may be terminated by either party,
with or without cause, upon written notice.

 

5.           Independent
Contractor. Consultant’s relationship with the Company will be that of an independent contractor and not that of
an employee or agent. Consultant will not be eligible for any employee benefits, nor will the Company make deductions from payments
made indemnify and hold the Company harmless from any liability for, or assessment of, any such taxes imposed on the Company by
relevant taxing authorities. Consultant will have no authority to enter into contracts that bind the Company or create any obligations
on the part of the Company without the prior written authorization of the Company.

 

    	 	 	 

     

    

  

6.           Supervision
of Consultant’s Services. All services to be performed by Consultant, including but not limited to the Services,
will be as agreed between Consultant and a supervisor designated by the Company, who initially shall be Rich Ferrari. Consultant
will be required to report to such supervisor concerning the Services performed under this Agreement. The nature and frequency
of these reports will be left to the discretion of the supervisor.

 

7.           Consulting
or Other Services for Competitors. Consultant represents and warrants that Consultant will not, during the term of this
Agreement, perform any consulting or other services for any company, person or entity whose business or proposed business in any
way involves products or services which could reasonably be determined to be competitive with the products or services or proposed
products or services of the Company. Areas considered to be competitive with the Company are those involving sacroiliac joint fusion.

 

8.           Confidential
Information.

 

a)          As
used in this Agreement, the term “Confidential Information” means information pertaining to any aspects of the
Company’s business which is either information not in the public domain or is proprietary information of the Company or its
customers or suppliers, whether of a technical nature or otherwise, the disclosure of which would cause material injury to the
Company and impair its good will and competitive position. Confidential Information includes, without limitation, information regarding
existing or contemplated Company products, processes, techniques, or know-how, or any information or data developed pursuant to
the performance of the Services.

 

b)          Consultant
recognizes and acknowledges that in the course of providing the Services under this Agreement, Consultant may acquire Confidential
Information. Consultant also recognizes that the Company has received and in the future will receive from third parties their
confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such
information and to use it only for certain limited purposes. Consultant agrees to hold in confidence and not directly or indirectly
use or disclose, either during or after termination of consulting relationship with the Company, any Confidential Information
of the Company or the above-mentioned third parties obtained or created during the period of consulting relationship, except to
the extent authorized by the Company. In the event that Consultant is an entity or otherwise will be causing individuals in its
employ or under its supervision to participate in the rendering of the Services, Consultant warrants that it shall cause each
of such individuals to execute a nondisclosure agreement containing provisions substantially similar to the confidentiality obligations
of this Agreement.

 

c)          The
obligations set forth in this Section 8 shall not apply to any Confidential Information which: (1) is in or becomes part of the
public domain by means other than Consultant’s breach of Consultant’s obligations under this Agreement; (2) was already
known to Consultant at the time of disclosure by the Company as evidenced by written records of Consultant at the time of disclosure
by the Company as evidenced by written records of Consultant; (3) has been rightfully received by Consultant from a third party
who is authorized to make such disclosure. Nothing in this Agreement shall be read to limit any obligation of confidentiality Consultant
may have had by virtue of Consultant’s previous relationship or confidentiality agreements with the Company.

 

    	 	-2-	 

     

    

  

d)          Upon
termination of consulting relationship or upon an earlier request of the Company, Consultant shall promptly return or deliver to
the Company all tangible forms of such Confidential Information that Consultant may have in possession, including but not limited
to drawings, specifications, documents, records, devices, models or any other material and copies or reproductions thereof.

 

9.           Ownership
of Intellectual Property.

 

a)          As
used in this Agreement, the term “Inventions” means designs, drawings, formulae, processes, manufacturing techniques,
trade secrets, discoveries, inventions, improvements, developments, ideas or copyrightable works, including all rights to obtain,
register, perfect and enforce these proprietary interests.

 

b)          Without
further compensation, Consultant agrees promptly to disclose to the Company, and hereby assigns and agrees to assign to the Company
or its designee, Consultant’s entire right, title, and interest in and to all Inventions which Consultant may, solely or
in collaboration with others, conceive, make, develop or reduce to practice during the period of this Agreement and in connection
with or during the performance of any Services under this Agreement, whether or not during working hours. Any copyrightable work,
whether published or unpublished, created by Consultant in connection with or during the performance of any Services, shall be
deemed “works made for hire” as that term is defined in the United States Copyright Act, and all right, title
and interest therein, including without limitation, worldwide copyrights, shall be the property of the Company as the party specially
commissioning such work. In the event that any such copyrightable work or portion thereof shall not be legally qualified as a work
made for hire, or shall subsequently be so held to not be a work made for hire, Consultant agrees to assign, and does hereby so
assign to the Company, Consultant’s entire right, title and interest in and to such work or portion thereof, including, but
not limited to, the worldwide rights to reproduce the copyrighted work, to prepare derivative works based on the copyrighted work,
to distribute copies of the copyrighted work, to perform and to display the copyrighted work publicly, and to register the claim
of copyright therein.

 

c)          Consultant
agrees to perform, during and after termination of this Agreement, all acts deemed necessary or desirable by the Company to permit
and assist it, at Company’s expense, in obtaining and enforcing the full benefits, enjoyment, rights and title throughout
the world in the Inventions assigned to the Company as set forth in this Section 9 above. Such acts may include, but are not limited
to, execution of documents, assignments, provision of all necessary information, records, materials or testimony, and assistance
or cooperation in legal proceedings. Company shall bear all costs of such actions as may be reasonably incurred by Consultant.
All obligations of this Section 9 shall survive termination of this Agreement. Consultant hereby irrevocably designates the Company
and its duly authorized officers and agents as Consultant’s agent and attorney in fact, to execute and file on Consultant’s
behalf any such applications and to do all other lawful acts to further the prosecution and issuance of patents, copyright and
mask work registrations related to such Inventions. This power of attorney shall not be affected by any subsequent incapacity of
Consultant.

 

    	 	-3-	 

     

    

  

d)          Section
2870. This Agreement does not apply to an Invention which qualifies fully under the provisions of Section 2870 of the Labor
Code, a copy of which is attached hereto as Exhibit B. Consultant agrees to disclose promptly any and all Inventions that
may reasonably be subject to this Section 9 in confidence to the Company to permit a determination as to whether or not the Inventions
should be the property of the Company.

 

10.         Conflicts
with this Agreement.

 

a)          Consultant
represents and warrants that Consultant shall at all times during the term of this Agreement act in the best interest of the Company
and take no action or engage in any activity which is or might be detrimental to the interest of the Company. Consultant further
represents and warrants that neither Consultant nor any of Consultant’s partners, employees or agents is under any pre-existing
obligation in conflict or in any way inconsistent with the provisions of this Agreement, and Consultant is not a party to any other
agreement which will interfere with Consultant’s full compliance with this Agreement. Consultant agrees not to enter into
any written or oral agreement or obligation that conflict with any of the provisions of this Agreement.

 

b)          Consultant
represents and warrants that Consultant’s performance of all the terms of this Agreement and as a consultant to the Company
do not and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired by Consultant
in confidence or in trust prior to becoming a consultant of the Company, and Consultant will not disclose to the Company, or induce
the Company to use, any confidential or proprietary information or material belonging to any previous employer or others. Consultant
further represents and warrants that Consultant has the right to disclose or use all ideas, processes, techniques and other information,
if any, which Consultant has gained from third parties, and which Consultant discloses to the Company in the course of performance
of this Agreement, without liability to such third parties. Consultant represents and warrants that Consultant has not granted
any rights or licenses to any intellectual property or technology that would conflict with Consultant’s obligations under
this Agreement. Consultant will not knowingly infringe upon any copyright, patent, trade secret or other property right of any
former client, employer or third party in the performance of the services required by this Agreement.

 

11.         Solicitation
of Employees, Consultants and Other Parties. Consultant agrees that during the term of this Agreement, and for a period
of 6 months following the termination of the Agreement for any reason, Consultant shall not directly or indirectly solicit, induce,
recruit or encourage any of the Company’s employees or consultants to terminate their relationship with the Company, or attempt
any of the foregoing, either for Consultant or any other person or entity.

 

    	 	-4-	 

     

    

  

12.         Miscellaneous.

 

(a)          Amendments
and Waivers. Any term of this Agreement may be amended or waived only with the prior written consent of the Parties.

 

(b)          Sole
Agreement. This Agreement, including the Exhibits hereto, constitutes the sole agreement of the Parties and supersedes
all oral negotiations and prior writings with respect to the subject matter hereof.

 

(c)          Notices.
Any notice required or permitted by this Agreement shallbe in

writing and shall be deemed sufficient upon receipt,
when delivered personally or by courier, overnight delivery service or confirmed facsimile, or forty-eight (48) hours after being
deposited in the regular mail as certified or registered mail (airmail if sent internationally) with postage prepaid, if such notice
is addressed to the party to be notified at such party’s address or facsimile number as set forth below, or as subsequently
modified by written notice.

 

(d)          Choice
of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the
State of California, without giving effect to the principles of conflict of laws.

 

(e)          Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate
such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such
provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted
as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms.

 

(f)          Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute
one and the same instrument.

 

(g)          Assignment.
Neither this Agreement nor any right hereunder or interest herein may be assigned or transferred by Consultant without the express
written consent of the Company.

 

(h)          Arbitration.
Any dispute or claim arising out of or in connection with any provision of this Agreement, excluding Sections 8, 9 and 10 hereof,
will be finally settled by binding arbitration in San Jose, California in accordance with the rules of the American Arbitration
Association by one arbitrator appointed in accordance with said rules. The arbitrator shall apply California law, without reference
to rules of conflicts of law or rules of statutory arbitration, to the resolution of any dispute. Judgment on the award rendered
by the arbitrator may be entered in any court having jurisdiction thereof. Notwithstanding the foregoing, Consultant agrees that
it would be impossible or inadequate to measure and calculate the Company’s damages from any breach of the covenants set
forth in Sections 8-10, therefore the Company may apply to any court of competent jurisdiction for preliminary or interim equitable
relief, for example, injunction restraining such breach or threatened breach, or specific performance of any such provision.

 

    	 	-5-	 

     

    

  

(i)          Advice
of Counsel. EACH PARTY ACKNOWLEDGES THAT, IN EXECUTING THIS AGREEMENT, SUCH PARTY HAS HAD THE OPPORTUNITY TO SEEK THE ADVICE
OF INDEPENDENT LEGAL COUNSEL, AND HAS READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT SHALL
NOT BE CONSTRUED AGAINST ANY PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF.

 

[Signature Page Follows]

 

    	 	-6-	 

     

    

  

IN WITNESS WHEREOF, The Parties have executed
this Agreement as of the Effective Date of this Agreement.

 

	 	TENON MEDICAL, INC.
	 	 
	 	/s/ Steve Van Dick
	 	By: Steve Van Dick
	 	Title: Chief Financial Officer
	 	 
	 	CONSULTANT
	 	 
	 	/s/ Richard Ferrari
	 	Name: Richard Ferrari
	 	Address: 19575 Three Oaks Way, Saratoga,
	 	CA 95070
	 	Email: rich@denovovc.com
	 	Phone: 408-712-3313

 

SIGNATURE PAGE TO TENON MEDICAL, INC, CONSULTING
AGREEMENT

 

    	 	-7-	 

     

    

  

EXHIBIT A

 

DESCRIPTION OF CONSULTING SERVICES AND
COMPENSATION

 

		a)	Consultant’s duties under this Agreement shall be to assume the role of Executive Chairman of Tenon Medical.

 

		b)	For Services rendered by Consultant under this Agreement, the Company will pay Richard Ferrari $22,500 a month starting on
the first month following and initial public offering. The company will also pay a success payment of $350,000 upon the completion
of an initial public offering where the market cap of the company exceeds $50 million either at the time of the IPO or anytime
thereafter. If there is no IPO the success payment will be earned upon a subsequent round of equity financing.

 

    	 	-8-	 

     

    

  

EXHIBIT B

 

Section 2870 of the California Labor Code
is as follows:

 

“(a)          Any
provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights
in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time
without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that
either:

 

(1)         Relate
at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably
anticipated research or development of the employer.

 

(2)         Result
from any work performed by the employee for the employer.

 

(b)          To
the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from
being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.”

 

    	 	-9-Exhibit 10.18

 

TENON MEDICAL, INC.

 

EMPLOYMENT AGREEMENT

 

This Agreement is entered
into as of June 1, 2021 (the “Effective Date”) by and between Tenon Medical, Inc. (the “Company”),
and Steve Van Dick (“Executive”).

 

RECITALS

 

WHEREAS, Executive has
executed the At-Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement on or before the Effective
Date in favor of the Company (the “Confidential Information Agreement”); and

 

WHEREAS, Executive and
Company wish to enter into this Agreement to memorialize the other terms of Executive’s employment with the Company as of
the Effective Date.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual
promises made herein, the Company and Executive hereby agree as follows:

 

1.             Duties
and Scope of Employment.

 

(a)           Positions
and Duties. Executive will serve as the Chief Financial Officer of the Company. Executive will render such business and professional
services in the performance of his duties, consistent with Executive’s position within the Company, as will reasonably be
assigned to him by the Board. The period of Executive’s employment under this Agreement is referred to herein as the “Employment
Term.”

 

(b)           Obligations.
During the Employment Term, Executive will perform his duties faithfully and to the best of his ability and will devote his full
business efforts and time to the Company during normal business hours. For the duration of the Employment Term, Executive agrees
not to actively engage in any other employment, occupation or consulting activity for any direct or indirect remuneration, other
than those which he is currently engaged, without the prior approval of the Board.

 

2.             At-Will
Employment. The parties agree that Executive’s employment with the Company will be “at-will” employment and
may be terminated at any time with or without cause or notice. Executive understands and agrees that neither his job performance
nor promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for modification,
amendment, or extension, by implication or otherwise, of his employment with the Company. However, as described in this Agreement,
Executive may be entitled to severance benefits depending on the circumstances of Executive’s termination of employment with
the Company.

 

    	 	 	 

     

    

 

3.             Compensation.

 

(a)           Base
Salary. During the Employment Term, the Company will pay Executive an initial annual salary of $275,000 as compensation for
his services (the “Base Salary”). The Base Salary will be paid periodically in accordance with the Company’s
normal payroll practices and be subject to the usual, required withholding. Executive’s salary will be subject to review
and adjustments will be made based upon the Company’s normal performance review practices.

 

(b)           Bonus
Opportunity. In addition, Executive shall be eligible to receive an annual cash bonus up to 30% of the Executive’s base
salary upon completion of mutually agreed upon milestones to be determined by the Board and Executive following the Effective Date
(the “Bonus Opportunity”). Any such bonus will be payable as soon as practicable after it is earned, but in
no event later than March 15 of the year following the calendar year in which such bonus is earned.

 

(c)           Option.
The grant of an option to purchase 113,000 shares of the Company’s Common Stock granted on May 1, 2021 (the “Option”)
will continue to vest pursuant to its terms.

 

4.             Employee
Benefits. During the Employment Term, Executive will be entitled to participate in the employee benefit plans currently and
hereafter maintained by the Company of general applicability to other senior executives of the Company. The Company reserves the
right to cancel or change the benefit plans and programs it offers to its employees at any time.

 

5.             Vacation.
Executive will be entitled to 4 weeks of paid vacation in accordance with the Company’s vacation policy, with the timing
and duration of specific vacations mutually and reasonably agreed to by Executive and the Board. Executive will also participate
in paid company holidays in accordance with the Company’s approved holiday schedule.

 

6.             Expenses.
The Company will reimburse Executive for reasonable travel, entertainment or other expenses incurred by Executive in the furtherance
of or in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s expense
reimbursement policy as in effect from time to time.

 

7.             Severance.

 

(a)           Termination
for other than Cause, Death or Disability or Resignation for Good Reason. If (i) the Company terminates Executive’s employment
with the Company other than for Cause, death or disability, or (ii) Executive resigns from his employment with the Company
for Good Reason, then, subject to Section 9, Executive will be entitled to (A) receive continuing payments of severance pay
at a rate equal to his Base Salary rate, as then in effect (or, in the event of Resignation for Good Reason pursuant to the event
described in Section 10(d)(ii) hereof, a rate equal to his Base Salary rate, as in effect immediately prior to such event), for
twelve (12) months from the date of such termination in accordance with the Company’s normal payroll policies; and (B) if
Executive elects continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”)
for Executive and Executive’s eligible dependents within the time period prescribed pursuant to COBRA, the Company will reimburse
Executive for the COBRA premiums for such coverage (at the coverage levels in effect immediately prior to Executive’s termination)
until the earlier of (1) a period of twelve (12) months from the last date of employment of the Executive with the Company, or
(2) the date upon which Executive and/or Executive’s eligible dependents becomes covered under similar plans. COBRA reimbursements
will be made by the Company to Executive consistent with the Company’s normal expense reimbursement policy. However, if the
Company determines in its sole discretion that it cannot provide the COBRA benefits without potentially violating applicable law
(including, without limitation, Section 2716 of the Public Health Service Act), the Company will in lieu thereof provide to Executive
a taxable monthly payment in an amount equal to the monthly COBRA premium that Executive would be required to pay to continue his
or her group health coverage in effect on the date of his or her termination of employment (which amount will be after taxes and
based on the premium for the first month of COBRA coverage), which payments will be made regardless of whether Executive elects
COBRA continuation coverage. Notwithstanding anything to the contrary under this Agreement, if at any time the Company determines
in its sole discretion that it cannot provide the payments contemplated by the preceding sentence without violating applicable
law (including, without limitation, Section 2716 of the Public Health Service Act), Executive will not receive such payment or
any further reimbursements for COBRA premiums.

 

    	 	-2-	 

     

    

 

(b)           Termination
for Cause, Death or Disability; Resignation without Good Reason. If Executive’s employment with the Company terminates
voluntarily by Executive (except upon resignation for Good Reason), for Cause by the Company or due to Executive’s death
or disability, then (i) all vesting will terminate immediately with respect to Executive’s outstanding equity awards, (ii)
all payments of compensation by the Company to Executive hereunder will terminate immediately (except as to amounts already earned),
and (iii) Executive will only be eligible for severance benefits in accordance with the Company’s established policies, if
any, as then in effect.

 

8.             Change
in Control Benefits. Upon the closing of a Change in Control, subject to Executive’s continued employment through such
date, Executive shall receive (i) accelerated vesting of the Option as to 100% of the then unvested and outstanding portion of
the Option, and (ii) a lump sum cash payment of one year of Base Salary and Bonus Opportunity then in effect, subject to applicable
withholdings and payable within ten (10) business days following the closing of such Change in Control.

 

9.             Conditions
to Receipt of Severance; No Duty to Mitigate.

 

(a)           Separation
Agreement and Release of Claims. The receipt of any severance pursuant to Section 7 will be subject to Executive signing and
not revoking a separation agreement and release of claims in a form reasonably satisfactory to the Company and provided that such
separation agreement and release of claims becomes effective and irrevocable no later than sixty (60) days following the termination
date (such deadline, the “Release Deadline”). If the release of claims does not become effective by the Release
Deadline, Executive will forfeit any rights to severance or benefits under this Agreement. In no event will severance payments
or benefits be paid or provided until the release of claims becomes effective and irrevocable. Except as required by Section 9(c),
any installment payments that would have been made to Executive during the sixty (60) day period immediately following his separation
from service but for the preceding sentence will be paid to Executive on the sixtieth (60th) day following Executive’s separation
from service and the remaining payments will be made as provided in the Agreement.

 

(b)           Non-Solicitation.
The receipt of any severance benefits pursuant to payable hereunder will be subject to Executive not violating the provisions of
Section 12. In the event Executive breaches the provisions of Section 12, all continuing payments and benefits to which Executive
may otherwise be entitled hereunder will immediately cease.

 

    	 	-3-	 

     

    

 

(c)           Section
409A.

 

(i)       Notwithstanding
anything to the contrary in this Agreement, no severance pay or benefits to be paid or provided to Executive, if any, pursuant
to this Agreement, when considered together with any other severance payments or separation benefits that are considered deferred
compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”) will be paid or
otherwise provided until Executive has a “separation from service” within the meaning of Section 409A.

 

(ii)       Notwithstanding
anything to the contrary in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A
at the time of Executive’s termination (other than due to death), then the Deferred Compensation Separation Benefits that
are payable within the first six (6) months following Executive’s separation from service, will become payable on the first
payroll date that occurs on or after the date six (6) months and one (1) day following the date of Executive’s separation
from service. All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment
schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Executive dies following Executive’s
separation from service, but prior to the six (6) month anniversary
of the separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon
as administratively practicable after the date of Executive’s death and all other Deferred Compensation Separation Benefits
will be payable in accordance with the payment schedule applicable to each payment or benefit. Each payment and benefit payable
under this Agreement is intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

 

(iii)       Any
amount paid under this Agreement that satisfies the requirements of the “short-term deferral” rule set forth in Section
1.409A-1(b)(4) of the Treasury Regulations will not constitute Deferred Compensation Separation Benefits for purposes of clause
(i) above.

 

(iv)       Any
amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant
to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit (as defined below) will
not constitute Deferred Compensation Separation Benefits for purposes of clause (i) above.

 

(v)       The
foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits
to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted
to so comply. The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take
such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition
prior to actual payment to Executive under Section 409A.

 

(d)           Confidential
Information Agreement. Executive’s receipt of any payments or benefits under Section 7 will be subject to Executive continuing
to comply with the terms of Confidential Information Agreement (as defined above).

 

(e)           No
Duty to Mitigate. Executive will not be required to mitigate the amount of any payment contemplated by this Agreement, nor
will any earnings that Executive may receive from any other source reduce any such payment.

 

    	 	-4-	 

     

    

 

10.           Definitions.

 

(a)           Benefit
Plans. For purposes of this Agreement, “Benefit Plans” means plans, policies or arrangements that the Company
sponsors (or participates in) and that immediately prior to Executive’s termination of employment provide Executive and/or
Executive’s eligible dependents with medical, dental, and/or vision benefits. Benefit Plans do not include any other type
of benefit (including, but not by way of limitation, disability, life insurance or retirement benefits). A requirement that the
Company provide Executive and Executive’s eligible dependents with coverage under the Benefit Plans will not be satisfied
unless the coverage is no less favorable than that provided to senior executives of the Company at any applicable time during the
period Executive is entitled to receive severance pursuant to Section 7(a). The Company may, at its option, satisfy any requirement
that the Company provide coverage under any Benefit Plan by (i) reimbursing Executive’s premiums under Title X
of the Consolidated Budget Reconciliation Act of 1985, as amended (“COBRA”) after Executive has properly elected
continuation coverage under COBRA (in which case Executive will be solely responsible for electing such coverage for his eligible
dependents), or (ii) providing coverage under a separate plan or plans providing coverage that is no less favorable or by
paying Executive a lump-sum payment which is, on an after-tax basis, sufficient to provide Executive and Executive’s eligible
dependents with equivalent coverage under a third party plan that is reasonably available to Executive and Executive’s eligible
dependents.

 

(b)           Cause.
For purposes of this Agreement, “Cause” is defined as (i) an act of dishonesty made by Executive in connection
with Executive’s responsibilities as an employee, (ii) Executive’s conviction of, or plea of nolo contendere
to, a felony or any crime involving fraud, embezzlement or any other act of moral turpitude, (iii) Executive’s gross misconduct,
(iv) Executive’s unauthorized use or disclosure of any proprietary information or trade secrets of the Company or any
other party to whom Executive owes an obligation of nondisclosure as a result of Executive’s relationship with the Company;
(v) Executive’s willful breach of any obligations under any written agreement or covenant with the Company; or (vi)
Executive’s continued failure to perform his employment duties after Executive has received a written demand of performance
from the Company with specifically sets forth the factual basis for the Company’s belief that Executive has not substantially
performed his duties and has failed to cure such non-performance to the Company’s satisfaction within 10 business days after
receiving such notice.

 

(c)           Change
in Control. For purposes of this Agreement, “Change in Control” of the Company is defined as:

 

(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 Securities
Exchange Act of 1934, as amended (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

 

    	 	-5-	 

     

    

 

(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
10(c), 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 state 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.

 

(d)           Code.
For purposes of this Agreement, “Code” means the Internal Revenue Code of 1986, as amended.

 

(e)           Fully-Diluted
Capitalization. For purposes of this Agreement, “Fully-Diluted Capitalization” means the total number of
shares of outstanding Company common stock or Company common stock issuable upon the conversion of any shares of outstanding Company
preferred stock, or any shares of Company common stock issuable upon the exercise of any outstanding stock options or conversion
of shares of Company preferred stock subject to any outstanding stock purchase warrants, but does not mean shares reserved but
unissued under the Company’s equity incentive plans.

 

(f)           Good
Reason. For purposes of this Agreement, “Good Reason” means Executive’s resignation within thirty
(30) days following the expiration of any Company cure period (discussed below) following the occurrence of one or more of the
following, without Executive’s consent: (i) the material reduction of Executive’s authority, duties or responsibilities;
(ii) a material reduction of Executive’s base compensation; or (iii) the relocation of Executive to a facility or a location
of fifty (50) miles or more from Executive’s then current office location. Executive’s resignation will not be deemed
to be for Good Reason unless Executive has first provided the Company with written notice of the acts or omissions constituting
the grounds for “Good Reason” within ninety (90) days of the initial existence of the grounds for “Good Reason”
and a reasonable cure period of not less than thirty (30) days following the date the Company receives such notice, and such condition
has not been cured during such period.

 

    	 	-6-	 

     

    

 

(g)           Section
409A. For purposes of this Agreement, “Section 409A” means Section 409A of the Code and any final regulations
and guidance thereunder and any applicable state law equivalent, as each may be amended or promulgated from time to time.

 

(h)           Section
409A Limit. For purposes of this Agreement, “Section 409A Limit” will mean the lesser of two (2) times:
(i) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during the Company’s taxable
year preceding the Company’s taxable year of Executive’s termination of employment as determined under Treasury Regulation
1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (ii) the maximum amount
that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Executive’s
employment is terminated.

 

11.           Confidential
Information. Executive shall continue to be bound by the Confidential Information Agreement during the term of his employment
hereunder.

 

12.           Non-Solicitation.
Until the date one (1) year after the termination of Executive’s employment with the Company for any reason, Executive agrees
not, either directly or indirectly, to solicit, induce, attempt to hire, recruit, encourage, take away, hire any employee of the
Company (or any parent or subsidiary of the Company) or cause an employee to leave his employment either for Executive or for any
other entity or person. Executive represents that he (i) is familiar with the foregoing covenant not to solicit, and (ii) is fully
aware of his obligations hereunder, including, without limitation, the reasonableness of the length of time, scope and geographic
coverage of these covenants.

 

13.           Assignment.
This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors and legal representatives of Executive
upon Executive’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted
for the Company under the terms of this Agreement for all purposes. For this purpose, “successor” means any
person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly
acquires all or substantially all of the assets or business of the Company. None of the rights of Executive to receive any form
of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution.
Any other attempted assignment, transfer, conveyance or other disposition of Executive’s right to compensation or other benefits
will be null and void.

 

14.           Notices.
All notices, requests, demands and other communications called for hereunder will be in writing and will be deemed given (i) on
the date of delivery if delivered personally, (ii) one (1) day after being sent by a well established commercial overnight service,
or (iii) four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the
parties or their successors at the following addresses, or at such other addresses as the parties may later designate in writing:

 

    	 	-7-	 

     

    

 

If to the Company:

 

Tenon Medical, Inc.

2110 Omega Road, Suite F

San
Ramon CA 94583

 

If to Executive, at the last
residential address known by the Company.

 

15.           Severability.
In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, this Agreement will continue in full force and effect without said provision.

 

16.           Integration.
This Agreement, together with the Plan and the Confidential Information Agreement represents the entire agreement and understanding
between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral.
This Agreement may be modified only by agreement of the parties by a written instrument executed by the parties that is designated
as an amendment to this Agreement.

 

17.           Waiver
of Breach. The waiver of a breach of any term or provision of this Agreement, which must be in writing, will not operate as
or be construed to be a waiver of any other previous or subsequent breach of this Agreement.

 

18.           Headings.
All captions and section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement.

 

19.           Tax
Withholding. All payments made pursuant to this Agreement will be subject to withholding of applicable taxes.

 

20.           Governing
Law. This Agreement will be governed by the laws of the State of California (with the exception of its conflict of laws provisions).

 

21.           Acknowledgment.
Executive acknowledges that he has had the opportunity to discuss this matter with and obtain advice from his private attorney,
has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly
and voluntarily entering into this Agreement.

 

22.           Counterparts.
This Agreement may be executed in counterparts, and each counterpart will have the same force and effect as an original and will
constitute an effective, binding agreement on the part of each of the undersigned.

 

[Remainder of Page Intentionally
Left Blank]

 

    	 	-8-	 

     

    

 

IN WITNESS WHEREOF, each
of the parties has executed this Agreement, in the case of the Company by their duly authorized officers, as of the day and year
first above written.

 

	COMPANY:	 
	 	 
	TENON MEDICAL, INC.	 
	 	 
	 	 
	 	 
	By: Richard Ferrari	 
	 	 
	Title: Executive Chairman	 
	 	 
	EXECUTIVE:	 
	 	 
	 	 
	Name: Steve Van Dick	 

 

[SIGNATURE PAGE TO EMPLOYMENT
AGREEMENT]

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