Document:

Exhibit 10.13

 

TENON MEDICAL, INC.

 

COMMON STOCK PURCHASE AGREEMENT

 

This
Common Stock Purchase Agreement (the
“Agreement”) is made and entered into as of May 19th, 2021, by and among Tenon
Medical, Inc., a Delaware corporation
(the “Company”), and SpineSource, Inc., a Missouri corporation having a place of business at 17826 Edison
Avenue, Chesterfield, MO 63005 (the “Purchaser”). Each of the Purchaser and the Company is a “party”
to this Agreement.

 

Recital

 

Whereas,
the Company and the Purchaser are parties to an Exclusive Sales Representative Agreement dated as of April 27, 2020, as amended
(the “Sales Representative Agreement”);

 

Whereas,
the Company wishes to modify and restate the Sales Representative Agreement,

 

Whereas,
the Purchaser is willing to modify the Sales Representative Agreement for certain good and valuable consideration, including,
but not limited to, the issuance to Purchaser by the Company of the Shares, as defined below.

 

Whereas,
the Company has authorized the issuance of 107,513 shares of its common stock, par value $0.001 per share to the Purchaser
(the “Shares”);

 

Whereas,
the Purchaser desires to receive the Shares on the terms and conditions set forth herein; and

 

Whereas,
the Company desires to issue the Shares to the Purchaser on the terms and conditions set forth herein.

 

Agreement

 

Now,
Therefore, in consideration of the foregoing recitals and the
mutual promises, representations, warranties, and covenants hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

		1.	AGREEMENT TO SELL
AND PURCHASE.

 

1.1       Authorization
of Shares. The Company has authorized the issuance and delivery to the Purchaser of the Shares.

 

1.2       Sale
and Purchase. Subject to the terms and conditions hereof, at the Closing (as hereinafter defined) the Company hereby agrees
to issue and deliver to the Purchaser and the Purchaser agrees to purchase from the Company the Shares. At the Closing, the Parties
agree that the Shares have a value of no greater than $0.50 per share.

 

		2.	Closing,
                                         Delivery And
                                         Payment.

 

2.1       Closing.
The closing of the issuance and delivery of the Shares under this Agreement (the “Initial Closing”) shall
take place on the date hereof remotely via the exchange of electronic documents and signatures, or at such other time or place
as the Company and the Purchaser may mutually agree (such date is hereinafter referred to as the “Closing Date”).

 

    	 	 	 

     

    

 

2.2       Delivery;
Consideration. At or promptly following the Closing, subject to the terms and conditions hereof, the Company will deliver to
the Purchaser a certificate representing the number of Shares to be acquired at the Closing by the Purchaser, against execution
of the Restated Sales Representative Agreement.

 

		3.	Representations
                                         And Warranties
                                         Of The
                                         Company.

 

The Company hereby represents
and warrants to Purchaser that, except as set forth on the Disclosure Schedule attached as Exhibit C to this Agreement,
which exceptions shall be deemed to be part of the representations and warranties made hereunder, the following representations
are true and complete as of the date of the applicable Closing, except as otherwise indicated. The Disclosure Schedule shall be
arranged in sections corresponding to the numbered and lettered sections contained in this Section 3, and the disclosures in any
section of the Disclosure Schedule shall qualify other sections in this Section 3 only to the extent it is readily apparent from
a reading of the disclosure that such disclosure is applicable to such other sections.

 

3.1       Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware. The Company has all requisite corporate power and authority to own and operate its properties and
assets, to execute and deliver this Agreement and all other documents, instruments or agreements entered in connection herewith
or therewith, each, as amended or otherwise modified from time to time, and all modifications, renewals, replacements, extensions
and rearrangements thereof and substitutions and replacements therefor (collectively, the “Transaction Documents”),
to issue and deliver the Shares and to carry out the provisions of the Transaction Documents and to carry on the Company’s
business as presently conducted and as presently proposed to be conducted. The Company is duly qualified and is authorized to do
business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its
properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure to do so
would not have a material adverse effect on the assets, conditions, affairs or prospects of the Company, financially or otherwise.

 

3.2       Capitalization.

 

(a)       The
authorized capital stock of the Company, immediately prior to the Closing, consists of 7,000,000 shares of Common Stock, par value
of $0.001, 1,660,000 shares of which are issued and outstanding; and 2,460,802, shares of Preferred Stock, par value of $0.001,
491,212 of which are issued and outstanding immediately prior to the Initial Closing. The Company has reserved 1,325,031 shares
of Common Stock for issuance to officers, directors, employees and consultants of the Company pursuant to its 2012 Stock Incentive
Plan, duly adopted by the Board of Directors and approved by the Company stockholders (the “Stock Plan”).
Of such reserved shares of Common Stock, 984,574 shares have been issued pursuant to standard stock option agreements in accordance
with the Stock Plan.

 

(b)       Other
than as set forth on the Capitalization Table reflected in the attached Exhibit B (the “Cap Table”),
there are no outstanding convertible securities or notes, options, warrants, rights (including conversion or preemptive rights
and rights of first refusal), proxy or stockholder agreements, or agreements of any kind for the purchase or acquisition from the
Company of any of its securities, or any stockholder agreements with stockholder rights including but not limited to co-sale rights,
preemptive rights, drag-along rights, rights of first refusal or similar rights. If, after the date hereof, any such Common Stockholder
agreement is consummated, then the Purchaser shall have the right to be a party thereto, and be afforded any such Common Stockholder
rights applicable to all Common stockholders.

 

    	 	2 	 

     

    

 

(c)       All
issued and outstanding shares of the Company’s capital stock (i) have been duly authorized and validly issued to the persons
listed on the Cap Table hereto and are fully paid and nonassessable, and (ii) were issued in compliance with all applicable state
and federal laws concerning the issuance of securities.

 

(d)       When
issued in compliance with the provisions of this Agreement, the Shares will be validly issued, fully paid and nonassessable, and
will be free of any liens or encumbrances; provided, however, that the Shares may be subject to restrictions on transfer
under state and/or federal securities laws as set forth herein or as otherwise required by such laws at the time a transfer is
proposed.

 

3.3       Authorization;
Binding Obligations. All corporate action on the part of the Company, its officers, directors and stockholders necessary for
the authorization of the Transaction Documents, the performance of all obligations of the Company under the Transaction Documents
at the Closing and the authorization, sale, issuance and delivery of the Shares pursuant hereto has been taken. The Transaction
Documents, when executed and delivered, will be valid and binding obligations of the Company enforceable in accordance with their
terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application
affecting enforcement of creditors’ rights and (b) general principles of equity that restrict the availability of equitable
remedies.

 

3.4       Compliance
with Other Instruments. The Company is not in violation or default of any term of its organizational documents, including its
certificate of incorporation, or of any provision of any material mortgage, indenture, contract, agreement, instrument or contract
to which it is party or by which it is bound or of any judgment, decree, order or writ or to its knowledge, of any provision of
any federal or state statute, rule or regulation applicable to the Company. The execution, delivery, and performance of and compliance
with the Transaction Documents, and the issuance and sale of the Shares pursuant hereto, will not, with or without the passage
of time or giving of notice, result in any such violation, or be in conflict with or constitute a default under any such term,
or result in the creation of any mortgage, pledge, lien, encumbrance or charge upon any of the properties or assets of the Company
or the suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable
to the Company, its business or operations or any of its assets or properties or cause the acceleration of any payments owed to
third parties.

 

3.5       Compliance
with Laws; Permits. The Company is not in violation of any applicable statute, rule, regulation, order or restriction of any
domestic or foreign government or any instrumentality or agency thereof in respect of the conduct of its business or the ownership
of its properties which violation could materially and adversely affect the business, assets, liabilities, financial condition,
operations or prospects of the Company. No governmental orders, permissions, consents, approvals or authorizations are required
to be obtained and no registrations or declarations are required to be filed in connection with the execution and delivery of the
Transaction Documents or the issuance of the Shares, except such as have been duly and validly obtained or filed, or with respect
to any filings that must be made after the Closing, as will be filed in a timely manner.

 

    	 	3 	 

     

    

 

3.6       Litigation.
There is no claim, action, suit, proceeding, arbitration, complaint, charge or investigation pending or to the Company’s
knowledge, currently threatened in writing (i) against the Company or any officer, or director of the Company; or (ii) to the Company’s
knowledge, that questions the validity of the Transaction Agreements or the right of the Company to enter into them, or to consummate
the transactions contemplated by the Transaction Agreements; or (iii) to the Company’s knowledge, that would reasonably be
expected to have, either individually or in the aggregate, a material adverse effect. Neither the Company nor, to the Company’s
knowledge, any of its officers, or directors is a party or is named as subject to the provisions of any order, writ, injunction,
judgment or decree of any court or government agency or instrumentality (in the case of officers, or directors, such as would affect
the Company). There is no action, suit, proceeding or investigation by the Company pending or which the Company intends to initiate.
The foregoing includes, without limitation, actions, suits, proceedings or investigations pending or threatened in writing (or
any basis therefor known to the Company) involving the prior employment of any of the Company’s employees, their services
provided in connection with the Company’s business, any information or techniques allegedly proprietary to any of their former
employers or their obligations under any agreements with prior employers.

 

3.7       Subsidiaries.
The Company does not currently own or control, directly or indirectly, any interest in any other corporation, partnership, trust,
joint venture, limited liability company, association, or other business entity. The Company is not a participant in any joint
venture, partnership or similar arrangement.

 

3.8       Insurance.
The Company has in full force and effect insurance policies concerning such casualties as would be reasonable and customary for
companies like the Company, with extended coverage, sufficient in amount (subject to reasonable deductions) to allow it to replace
any of its material properties that might be damaged or destroyed.

 

3.9       Permits.
The Company has all franchises, permits, licenses and any similar authority necessary for the conduct of its business, the lack
of which could reasonably be expected to have a Material Adverse Effect. The Company is not in default in any material respect
under any of such franchises, permits, licenses or other similar authority.

 

3.10       FDA
Approvals. The Company possesses all permits, licenses, registrations, certificates, authorizations, orders and approvals from
the appropriate federal, state or foreign regulatory authorities necessary to conduct its business as now conducted, including
all such permits, licenses, registrations, certificates, authorizations, orders and approvals required by the FDA or any other
federal, state or foreign agencies or bodies engaged in the regulation of drugs, pharmaceuticals, medical devices or biohazardous
materials. The Company has not received any notice of proceedings relating to the suspension, modification, revocation or cancellation
of any such permit, license, registration, certificate, authorization, order or approval. Neither the Company nor, to the Company’s
knowledge, any officer, employee or agent of the Company has been convicted of any crime or engaged in any conduct that has previously
caused or would reasonably be expected to result in (A) disqualification or debarment by the FDA under 21 U.S.C. Sections 335(a)
or (b), or any similar law, rule or regulation of any other governmental entities, (B) debarment, suspension, or exclusion under
any federal healthcare programs or by the General Services Administration, or (C) exclusion under 42 U.S.C. Section 1320a-7 or
any similar law, rule or regulation of any governmental entities. Neither the Company nor any of its officers, employees, or, to
the Company’s knowledge, any of its contractors or agents is the subject of any pending or threatened investigation by FDA
pursuant to its “Fraud, Untrue Statements of Material Facts, Bribery, and Illegal Gratuities” policy as stated at 56
Fed. Reg. 46191 (September 10, 1991) (the “FDA Application Integrity Policy”) and any amendments thereto,
or by any other similar governmental entity pursuant to any similar policy. Neither the Company nor any of its officers, employees,
contractors, and agents has committed any act, made any statement or failed to make any statement that would reasonably be expected
to provide a basis for FDA to invoke the FDA Application Integrity Policy or for any similar governmental entity to invoke a similar
policy. Neither the Company nor any of its officers, employees, or to the Company’s knowledge, any of its contractors or
agents has made any materially false statements on, or material omissions from, any notifications, applications, approvals, reports
and other submissions to FDA or any similar governmental entity.

 

    	 	4 	 

     

    

 

3.11       Offering
Valid. Assuming the accuracy of the representations and warranties of the Purchaser contained in Section 4 hereof, the offer,
sale and issuance of the Shares will be exempt from the registration requirements of the Securities Act of 1933, as amended (the
“Securities Act”) and will be registered or qualified (or are exempt from registration and qualification)
under the registration, permit or qualification requirements of all applicable state securities laws. Neither the Company nor any
agent on its behalf has solicited or will solicit any offers to sell or has offered to sell or will offer to sell all or any part
of the Shares to any person or persons so as to bring the sale of such Shares by the Company within the registration provisions
of the Securities Act or any state securities laws.

 

		4.	Representations
                                         And Warranties
                                         Of Purchaser.

 

Purchaser hereby represents and warrants
to the Company, as follows:

 

4.1       Requisite
Power and Authority. Purchaser has all necessary power and authority to execute and deliver this Agreement and the other Transaction
Documents and to carry out their provisions. All action on Purchaser’s part required for the lawful execution and delivery
of this Agreement and the other Transaction Documents has been taken. Upon their execution and delivery, this Agreement and the
other Transaction Documents will be valid and binding obligations of Purchaser, enforceable in accordance with their terms, except
(a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting
enforcement of creditors’ rights and (b) as limited by general principles of equity that restrict the availability of equitable
remedies.

 

4.2       Investment
Representations. Purchaser understands that the Shares have not been registered under the Securities Act. Purchaser also understands
that the Shares are being offered and sold pursuant to an exemption from registration contained in the Securities Act based in
part upon Purchaser’s representations contained in the Agreement. Purchaser hereby represents and warrants as follows:

 

(a)       No
Assurances. Purchaser represents that none of the following has been represented, guaranteed or warranted to Purchaser by the
Company and/or its officers, directors, agents, employees or affiliates or any other person, expressly or by implication: (1) the
length of time that Purchaser shall be required to remain as the owner of the Shares; (2) the profit to be realized, if any, as
a result of investment in the Company; or (3) the past performance or experience of the Company’s officers, directors, agents,
employees, affiliates or of any other person, can be interpreted in any way to predict results of the ownership of Shares.

 

(b)       Purchaser
Bears Economic Risk. Purchaser has substantial experience in evaluating and investing in private placement transactions of
securities in companies similar to the Company so that the Purchaser is capable of evaluating the merits and risks of its investment
in the Company and has the capacity to protect its own interests. Purchaser must bear the economic risk of this investment indefinitely
unless the Shares are registered pursuant to the Securities Act, or an exemption from registration is available. Purchaser understands
that the Company has no present intention of registering the Shares or any shares of its Common Stock. Purchaser also understands
that there is no assurance that any exemption from registration under the Securities Act will be available and that, even if available,
such exemption may not allow Purchaser to transfer all or any portion of the Shares under the circumstances, in the amounts or
at the times Purchaser might propose.

 

(c)       Acquisition
for Own Account. Purchaser is acquiring the Shares for Purchaser’s own account for investment only, and not with a view
towards their distribution.

 

    	 	5 	 

     

    

 

(d)       Purchaser
Can Protect Its Interest. Purchaser represents that by reason of its, or of its management’s, business or financial experience,
Purchaser has the capacity to protect its own interests in connection with the transactions contemplated in this Agreement, and
the other Transaction Documents. Purchaser has adequate means of providing for current needs and has no need for liquidity in the
investment in the Company and can afford a complete loss of an investment in the Shares. Purchaser represents that Purchaser’s
financial commitment to all investments (including Purchaser’s investment in the Company and other investments that are not
readily marketable) is reasonable in relationship to Purchaser’s net worth. Purchaser’s investment in the Shares does
not exceed 10% of Purchaser’s net worth. Further, Purchaser is aware of no publication of any advertisement in connection
with the transactions contemplated in the Agreement and Purchaser has not seen or received any general advertisement or general
solicitation with respect to the sale of the Shares.

 

(e)       Risks.
Purchaser recognizes that investment in the Company involves substantial risks, including those referred to below, and has taken
full cognizance of and understands all of the risks related to the purchase of Shares including but not limited to the fact Purchaser
may lose his or her entire investment.

 

(f)       Accredited
Investor. Purchaser represents that it is an accredited investor within the meaning of Regulation D under the Securities Act.

 

(g)       Company
Information. Purchaser has had an opportunity to discuss the Company’s business, management and financial affairs with
directors, officers and management of the Company and has had the opportunity to review the Company’s operations and facilities.
Purchaser has also had the opportunity to ask questions of and receive answers from, the Company and its management regarding the
terms and conditions of this investment. The foregoing, however, does not limit or modify the representations and warranties of
the Company in Section 4 hereof or the right of the Purchaser to rely thereon.

 

(h)       Rule
144. Purchaser acknowledges and agrees that the Shares are “restricted securities” as defined in
Rule 144 promulgated under the Securities Act as in effect from time to time and must be held indefinitely unless they are subsequently
registered under the Securities Act or an exemption from such registration is available. Purchaser has been advised or is aware
of the provisions of Rule 144, which permits limited resale of shares purchased in a private placement subject to the satisfaction
of certain conditions, including, among other things: the availability of certain current public information about the Company,
the resale occurring following the required holding period under Rule 144 and the number of shares being sold during any three-month
period not exceeding specified limitations.

 

(i)       Residence.
If Purchaser is an individual, then Purchaser resides in the state or province identified in the address of Purchaser set forth
on Exhibit A; if Purchaser is a partnership, corporation, limited liability company or other entity, then the office or
offices of Purchaser in which its investment decision was made is located at the address or addresses of Purchaser set forth on
Exhibit A.

 

(j)Transfer Restrictions.Purchaser
acknowledges and agrees that the Shares are subject to restrictions on transfer as set forth in the bylaws of the Company.

 

    	 	6 	 

     

    

 

Lock-Up Period. The Purchaser
hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on
the date of the final prospectus relating to the registration by the Company of shares of its Common Stock or any other equity
securities under the Securities Act, on a registration statement on Form S-1 or Form S-3, and ending on the date specified by the
managing underwriter (such period not to exceed one hundred eighty (180) days in the case of the IPO), (i) lend; offer; pledge;
sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right,
or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities
convertible into or exercisable or exchangeable (directly or indirectly) for Common Stock held immediately before the effective
date of the registration statement for such offering or (ii) enter into any swap or other arrangement that transfers to another,
in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in
clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise.
The Purchaser further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such
registration that are consistent with this provision or that are necessary to give further effect thereto.

 

(k)       Tax
Consequences. Purchaser confirms that neither the officers of the Company nor any of its affiliates or agents have made any
representation or warranties or statements concerning tax consequences that may arise in connection with his/her investment in
the Company.

 

		5.	Antidilution.

 

Notwithstanding anything
to the contrary herein, the Company and the Purchaser agree that the Shares acquired hereby by the Purchaser are intended to equal
3% of the Fully Diluted Capitalization (defined below), and the Purchaser’s ownership percentage shall remain at 3% of the
Fully Diluted Capitalization through the completion of a Qualified IPO (as defined in the Company’s Amended and Restated
Certificate of Incorporation, on the date hereof). For avoidance of doubt and for purposes of clarification, if Purchaser’s
ownership percentage ever falls below 3% of the Fully Diluted Capitalization after the date hereof (“Antidilution Adjustment
Trigger”), then the Company shall immediately issue to Purchaser additional Shares to the extent that Purchaser’s
ownership equals 3% of the Company’s Fully Diluted Capitalization as of such time. Purchaser shall not be required to make
any payment as a result of the issuance of additional Shares pursuant to the Antidilution Adjustment Trigger. Any additional Shares
subject to the Antidilution Adjustment Trigger shall be reflected on Schedule A, attached hereto, and the Company shall
deliver to the Purchaser a certificate representing the number of additional shares subject to the Antidilution Adjustment Trigger.
“Fully-Diluted Capitalization” means, at any given time, the sum of (a) the number of shares of capital
stock actually outstanding at such time, plus (b) the number of shares of capital stock reserved for issuance at such time under
stock option or other equity incentive plans approved by the Board, including, without limitation the Stock Plan, regardless of
whether the shares of capital stock are actually subject to outstanding options at such time or whether any outstanding options
are actually exercisable at such time, plus (c) the number of shares of capital stock issuable upon conversion, exercise or exchange
of convertible securities actually outstanding at such time.

 

		6.	Miscellaneous.

 

6.1       Governing
Law. This Agreement shall be governed by and construed under the laws of the State of Delaware in all respects as such laws
are applied to agreements among Delaware residents entered into and performed entirely within Delaware. THE PARTIES TO THIS AGREEMENT
HEREBY WAIVE THEIR RIGHT TO A TRIAL BY JURY WITH RESPECT TO DISPUTES ARISING UNDER THIS AGREEMENT AND THE RELATED AGREEMENTS AND
CONSENT TO A BENCH TRIAL WITH THE APPROPRIATE JUDGE ACTING AS THE FINDER OF FACT.

 

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6.2       Survival.
The representations, warranties, covenants and agreements made herein shall survive the closing of the transactions contemplated
hereby. All statements as to factual matters contained in any certificate or other instrument delivered by or on behalf of the
Company pursuant hereto in connection with the transactions contemplated hereby shall be deemed to be representations and warranties
by the Company hereunder solely as of the date of such certificate or instrument. The representations, warranties, covenants and
obligations of the Company, and the rights and remedies that may be exercised by the Purchaser, shall not be limited or otherwise
affected by or as a result of any information furnished to, or any investigation made by or knowledge of, the Purchaser or any
of their representatives.

 

6.3       Successors
and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding
upon the parties hereto and their respective successors, assigns, heirs, executors and administrators and shall inure to the benefit
of and be enforceable by each person who shall be a holder of the Shares from time to time; provided, however, that prior
to the receipt by the Company of adequate written notice of the transfer of any Shares specifying the full name and address of
the transferee, the Company may deem and treat the person listed as the holder of such Shares in its records as the absolute owner
and holder of such Shares for all purposes.

 

6.4       Entire
Agreement. This Agreement, the Exhibits and Schedules hereto, the other Transaction Documents and the other documents delivered
pursuant hereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof
and no party shall be liable or bound to any other in any manner by any oral or written representations, warranties, covenants
and agreements except as specifically set forth herein and therein. Each party expressly represents and warrants that it is not
relying on any oral or written representations, warranties, covenants or agreements outside of this Agreement and the other Transaction
Documents.

 

6.5       Severability.
In the event one or more of the provisions of this Agreement should, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, and this
Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

 

6.6       Amendment
and Waiver. Any term of this Agreement may be amended, terminated or waived only with the written consent of the Company, and
the Purchaser.

 

6.7       Delays
or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to any party, upon any
breach, default or noncompliance by another party under any or all this Agreement and the other Transaction Documents, shall impair
any such right, power or remedy, nor shall it be construed to be a waiver of any such breach, default or noncompliance, or any
acquiescence therein, or of or in any similar breach, default or noncompliance thereafter occurring. It is further agreed that
any waiver, permit, consent or approval of any kind or character on any party’s part of any breach, default or noncompliance
under this Agreement or the other Transaction Documents or any waiver on such party’s part of any provisions or conditions
of this Agreement or the other Transaction Documents must be in writing and shall be effective only to the extent specifically
set forth in such writing. All remedies, either under this Agreement or the other Transaction Documents by law, or otherwise afforded
to any party, shall be cumulative and not alternative.

 

6.8       Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery
to the party to be notified, (b) when sent by electronic mail or confirmed facsimile if sent during normal business hours of the
recipient, if not so sent, then on the next business day, (c) five (5) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying
next day delivery, with written verification of receipt. All communications shall be sent to the Company at the address as set
forth on the signature page hereof and to the Purchaser at the address of the Purchaser set forth on Exhibit A attached
hereto or at such other address or electronic mail address as the Company or the Purchaser may designate by ten (10) days advance
written notice to the other parties hereto.

 

    	 	8 	 

     

    

 

6.9       Expenses.
Each party shall pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery and performance
of the Agreement.

 

6.10       Attorneys’
Fees. In the event that any suit or action is instituted under or in relation to this Agreement, including without limitation
to enforce any provision in this Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party
all fees, costs and expenses of enforcing any right of such prevailing party under or with respect to this Agreement, including
without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all
fees, costs and expenses of appeals.

 

6.11       Titles
and Subtitles. The titles of the sections and subsections of the Agreement are for convenience of reference only and are not
to be considered in construing this Agreement.

 

6.12       Counterparts.
This Agreement may be executed in any number of counterparts, including those executed by facsimile or electronic mail and/or electronic
signature, each of which shall be an original, but all of which together shall constitute one instrument.

 

6.13       Broker’s
Fees. Each party hereto represents and warrants that no agent, broker, investment banker, person or firm acting on behalf of
or under the authority of such party hereto is or will be entitled to any broker’s or finder’s fee or any other commission
directly or indirectly in connection with the transactions contemplated herein.

 

[SIGNATURE PAGES FOLLOW]

 

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In
Witness Whereof,
the parties hereto have executed this Common Stock
Purchase Agreement
as of the date set forth in the first paragraph hereof.

 

COMPANY:

 

Tenon
Medical, Inc.

 

	By:	/s/ Rich Ferrari	 
	 	Rich Ferrari	 
	 	Executive Chairman	 
	 	 	 
	 	5/19/2021	 

 

[Signature
Page – Common Stock
Purchase Agreement]

 

    	 	 	 

     

    

 

In
Witness Whereof, the parties
hereto have executed this Common Stock
Purchase Agreement as
of the date set forth in the first paragraph hereof.

 

PURCHASER:

 

SPINESOURCE, INC.

 

	By:	/s/ Tom Mitchell	 
	 	Tom Mitchell	 
	 	Chief Executive Officer	 
	 	 	 
	 	5/19/2021	 

 

[Signature
Page – Common Stock Purchase Agreement]

 

    	 	 	 

     

    

 

Exhibit
A

 

Schedule
Of Purchaser

 

Initial Closing on May__, 2021:

 

	Name
    and Address	 	Shares	 	 
	 	 	 	 	 
	SPINESOURCE, INC.	 	107,513	 	 

 

    	 	 	 

     

    

 

Exhibit
B

 

Capitalization
table

 

	 	 	Current Cap Table	 
	Stock	 	Authorized	 	 	Shares
 Outstanding
 Fully Diluted
	 	 	% Owned
 Fully
 Diluted
 Basis
	 
	STOCK	 	 	 	 	 	 	 	 	 	 	 	 
	COMMON STOCK	 	 	7,000,000	 	 	 	1,660,000	 	 	 	46.32	%
	SpineSource - 3%	 	 	 	 	 	 	107,513	 	 	 	3.00001	%
	PREFERRED STOCK	 	 	2,460,802	 	 	 	 	 	 	 	 	 
	SERIES A PREFERRED STOCK	 	 	1,798,905	 	 	 	 	 	 	 	0.00	%
	SERIES B PREFERRED STOCK	 	 	661,897	 	 	 	491,212	 	 	 	13.71	%
	Total Stock :	 	 	 	 	 	 	2,258,725	 	 	 	63.03	%
	RIGHTS TO ACQUIRE STOCK:	 	 	 	 	 	 	 	 	 	 	 	 
	2012 Equity Incentive Plan	 	 	1,325,031	 	 	 	 	 	 	 	 	 
	Options Outstanding	 	 	 	 	 	 	984,574	 	 	 	27.47	%
	Options Available	 	 	 	 	 	 	340,457	 	 	 	9.50	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Plan Total :	 	 	 	 	 	 	1,325,031	 	 	 	36.97	%
	Total Rights:	 	 	 	 	 	 	1,325,031	 	 	 	36.97	%
	Total Diluted Shares:	 	 	 	 	 	 	3,583,756	 	 	 	100.00	%

 

    	 	B-1 	 

     

    

 

Exhibit
C

 

Disclosure
Schedule

 

Section 3.2(b) The Company has convertible
notes outstanding as of 5-18-21 totaling $715,889. These notes accrue interest at 8% per annum. All of the convertible notes convert
to common stock upon an IPO at discounts ranging from 80% to 70% of the IPO price. These notes would also convert in a qualified
private financing to Preferred stock. Some of the notes convert at 70% of the price paid for the capital stock sold in the private
financing and other notes convert at

$1.9565 per share. A qualified financing is
at least $5,000,000.

 

The Company has authorized Series A Preferred
Stock to be issued upon the conversion of Zühlke Ventures ownership in Tenon Technology AG into ownership of Tenon Medical,
Inc. The Company expects this will result in the issuance of approximately 1,798,905 of Preferred Series A stock sometime in 2021.
The terms of Series A are pari passu as the Series B.

 

Series B Preferred investors have entered into
the following agreements: The Investor Rights Agreement, Right of First Refusal and Co-Sale Agreement and Voting Agreement which
define their rights as holders of Series B Preferred shares.

 

The Company is currently
doing a bridge financing consisting of convertible notes. The board has authorized management to sell up to $10 million of these
convertible notes. As of 5- 18-21, the Company has sold $3,655,000 of these convertible notes These notes accrue interest at 8%
per annum and upon an IPO will convert to common stock at 70% of the IPO price or upon a private financing of at least $5 million,
the notes will convert at 70% of the price paid for the capital stock sold in the private financing.

 

Section 3.7 The Company
owns 56.25% of Tenon Technology AG, a Swiss company.

 

Section 3.9 As of this
date, the Company does not have a Medical Device Manufacturing

License (“Manufacturing
License”) issued by the State of California, Department of Public Health — Food and Drug Branch (the “Branch”).
If necessary, the Company agrees to file an application for a Manufacturing License with the Branch as soon as possible, but in
any event, the Company will use reasonable commercial efforts to obtain a License from the Branch or deliver the Product according
to the terms of the Restated Exclusive Sales Representative Agreement.

 

Section 3.10The Company is currently making
changes to the product which may require FDA filings and approvals before the product can sold in the US.

 

    	 	B-2Exhibit 10.14

 

NOTE SUBSCRIPTION AGREEMENT

 

This Note Subscription
Agreement, dated as of May 18, 2021 (this “Agreement”), is entered into by and between Tenon Medical, Inc.,
a Delaware corporation (the “Company”), and the person or entity listed on the signature page hereto (the “Investor”).

 

RECITALS

 

A.             On
the terms and subject to the conditions set forth herein, the Investor is willing to purchase from the Company, and the Company
is willing to sell to such Investor, a convertible promissory note in the form of Exhibit A hereto (a “Note”)
in the principal amount set forth opposite such Investor’s name on the signature page hereto.

 

B.             Investor
will complete the investor suitability questionnaire set forth on Exhibit B hereto.

 

C.             The
Company may, in its sole discretion, issue and sell additional convertible promissory notes in a form substantially similar to
the Note (each, also a “Note” and together with all other Notes, the “Notes”) to certain
other investors identified by the Company from time to time (each, also an “Investor” and together with all
other Investors, the “Investors”) pursuant to a note subscription agreement in a form substantially similar
to this Agreement (each, also an “Agreement” and together with all other Agreements, the “Agreements”).

 

D.             Capitalized
terms not otherwise defined herein shall have the meaning set forth in the Note.

 

AGREEMENT

 

NOW THEREFORE, in consideration
of the foregoing, and the representations, warranties, and conditions set forth below, the parties hereto, intending to be legally
bound, hereby agree as follows:

 

1.             The
Note.

 

(a)       Issuance
of Note. Subject to all of the terms and conditions hereof, the Company agrees to issue and sell to the Investor, and the Investor
agrees to purchase from the Company, a Note in the principal amount set forth opposite such Investor’s name on the signature
page hereto.

 

(b)       Delivery.
The sale and purchase of the Note shall take place at a closing (the “Closing”) to be held on the date of this
Agreement (the “Closing Date”). At the Closing, the Company will deliver to the Investor the Note to be purchased
by such Investor, against receipt by the Company of the corresponding purchase price set forth on the signature page hereto (the
“Purchase Price”). The Purchase Price may be paid by wire using the wire instructions set forth on Exhibit
C hereto or by check made out to “Tenon Medical, Inc.” and delivered to the Company at Tenon Medical, Inc., Attn:
President, 2110 Omega Road Suite F, San Ramon CA 94583. The Note will be registered in such Investor’s name in the Company’s
records.

 

(c)       Use
of Proceeds. The proceeds of the sale and issuance of the Note shall be used for general corporate purposes.

 

    	 	 	 

     

    

 

2.             Representations
and Warranties of the Company. The Company represents and warrants to the Investor that:

 

(a)       Due
Incorporation, Qualification, etc. The Company (i) is a corporation duly incorporated, validly existing and in good standing
under the laws of the State of Delaware; (ii) has the power and authority to own, lease and operate its properties and carry on
its business as now conducted; and (iii) is duly qualified, licensed to do business and in good standing as a foreign corporation
in each jurisdiction where the failure to be so qualified or licensed could reasonably be expected to have a material adverse effect
on the Company.

 

(b)       Authority.
The execution, delivery and performance by the Company of each Transaction Document to be executed by the Company and the
consummation of the transactions contemplated thereby (i) are within the power of the Company and (ii) have been duly
authorized by all necessary actions on the part of the Company, its officers, directors and stockholders.

 

(c)       Enforceability.
Each Transaction Document executed, or to be executed, by the Company has been, or will be, duly executed and delivered by the
Company and constitutes, or will constitute, a legal, valid and binding obligation of the Company, enforceable against the Company
in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting
the enforcement of creditors’ rights generally and general principles of equity.

 

(d)       Compliance
with Other Instruments. Neither the authorization, execution and delivery of this Agreement, nor the issuance and delivery
of the Note, will constitute or result in a material default or violation of any law or regulation applicable to the Company or
any material term or provision of the Company's current Certificate of Incorporation or bylaws or any material agreement or instrument
by which it is bound or to which its properties or assets are subject.

 

(e)       No
“Bad Actor” Disqualification. The Company has exercised reasonable care, in accordance with Securities and Exchange
Commission rules and guidance, to determine whether any Covered Person (as defined below) is subject to any of the “bad actor”
disqualifications described in Rule 506(d)(1)(i) through (viii) under the Securities Act (“Disqualification Events”).
To the Company’s knowledge, no Covered Person is subject to a Disqualification Event, except for a Disqualification Event
covered by Rule 506(d)(2) or (d)(3) under the Securities Act. The Company has complied, to the extent applicable, with any disclosure
obligations under Rule 506(e) under the Securities Act. “Covered Persons” are those persons specified in Rule
506(d)(1) under the Securities Act, including the Company; any predecessor or affiliate of the Company; any director, executive
officer, other officer participating in the offering, general partner or managing member of the Company; any beneficial owner of
20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power; any promoter
(as defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of the sale of the Note;
and any person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection
with the sale of the Note (a “Solicitor”), any general partner or managing member of any Solicitor, and any
director, executive officer or other officer participating in the offering of any Solicitor or general partner or managing member
of any Solicitor.

 

3.             Representations
and Warranties of the Investor. The Investor represents and warrants to the Company upon the acquisition of a Note as follows:

 

(a)       Binding
Obligation. The Investor has full legal capacity, power and authority to execute and deliver this Agreement and to perform
its obligations hereunder. This Agreement constitutes a valid and binding obligation of such Investor, enforceable in accordance
with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement
of creditors’ rights generally and general principles of equity.

 

    	 	-2-	 

     

    

 

(b)       Securities
Law Compliance. The Investor has been advised that the Note and the underlying securities have not been registered under the
Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and, therefore, cannot
be resold unless they are registered under the Securities Act and applicable state securities laws or unless an exemption from
such registration requirements is available. Such Investor is aware that the Company is under no obligation to effect any such
registration with respect to the Note or the underlying securities or to file for or comply with any exemption from registration.
Such Investor has not been formed solely for the purpose of making this investment and is purchasing the Note to be acquired by
such Investor hereunder for its own account for investment, not as a nominee or agent, and not with a view to, or for resale in
connection with, the distribution thereof, and Investor has no present intention of selling, granting any participation in, or
otherwise distributing the same. Such Investor has such knowledge and experience in financial and business matters that such Investor
is capable of evaluating the merits and risks of such investment, is able to incur a complete loss of such investment without impairing
such Investor’s financial condition and is able to bear the economic risk of such investment for an indefinite period of
time. Such Investor is an “accredited investor” as such term is defined in Rule 501 of Regulation D under the Securities
Act and shall submit to the Company such further assurances of such status as may be reasonably requested by the Company. The residency
of the Investor (or, in the case of a partnership or corporation, such entity’s principal place of business) is correctly
set forth beneath such Investor’s name on the signature page hereto.

 

(c)       Access
to Information. The Investor acknowledges that the Company has given such Investor access to the corporate records and accounts
of the Company and to all information in its possession relating to the Company, has made its officers and representatives available
for interview by such Investor, and has furnished such Investor with all documents and other information required for such Investor
to make an informed decision with respect to the purchase of the Note.

 

(d)       No
“Bad Actor” Disqualification Events. Neither (i) Investor, (ii) any of its directors, executive officers, other
officers that may serve as a director or officer of any company in which it invests, general partners or managing members, nor
(iii) any beneficial owner of any of the Company’s voting equity securities (in accordance with Rule 506(d) of the Securities
Act) held by such Investor is subject to any Disqualification Event (as defined in Section 2(e)), except for Disqualification Events
covered by Rule 506(d)(2) or (d)(3) under the Securities Act and disclosed reasonably in advance of the Closing in writing in reasonable
detail to the Company.

 

4.             Miscellaneous.

 

(a)       Waivers
and Amendments. Any provision of this Agreement and the Note may be amended, waived or modified only upon the written consent
of the Company and the Investors representing a majority of all principal then owing pursuant to outstanding Notes issued pursuant
to the Agreements (a “Majority in Interest of Investors”). Any amendment or waiver effected in accordance with
this paragraph shall be binding upon all of the Investors with respect to their Notes.

 

(b)       Governing
Law. This Agreement and all actions arising out of or in connection with this Agreement shall be governed by and construed
in accordance with the laws of the State of California, without regard to the conflicts of law provisions of the State of California
or of any other state.

 

(c)       Survival.
The representations, warranties, covenants and agreements made herein shall survive the execution and delivery of this Agreement.

 

(d)       Successors
and Assigns. The rights and obligations of the Company and the Investor shall be binding upon and benefit the successors, assigns,
heirs, administrators and transferees of the parties.

 

(e)       Entire
Agreement. This Agreement together with the Note constitute and contain the entire agreement between the Company and Investor
and supersedes any and all prior agreements, negotiations, correspondence, understandings and communications among the parties,
whether written or oral, respecting the subject matter hereof.

 

    	 	-3-	 

     

    

 

(f)       Notices.
All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall in writing
and faxed, mailed or delivered to each party as follows: (i) if to the Investor, at such Investor’s address or facsimile
number set forth on the signature page hereto, or at such other address as such Investor shall have furnished the Company in writing,
or (ii) if to the Company, Tenon Medical, Inc., Attn: President, 2110 Omega Road Suite F, San Ramon CA 94583, or at such other
address as the Company shall have furnished to the Investor in writing. All such notices and communications will be deemed effectively
given the earlier of (i) when received, (ii) when delivered personally, (iii) one business day after being delivered by facsimile
(with receipt of appropriate confirmation), (iv) one business day after being deposited with an overnight courier service of recognized
standing or (v) four days after being deposited in the

U.S. mail, first class with postage prepaid.

 

(g)       Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together
will constitute one and the same agreement. Facsimile copies of signed signature pages will be deemed binding originals.

 

(h)       Waiver
of Potential Conflicts of Interest. Each of the Investors and the Company acknowledges that Wilson Sonsini Goodrich & Rosati,
Professional Corporation (“WSGR”) may have represented and may currently represent certain of the Investors.
In the course of such representation, WSGR may have come into possession of confidential information relating to Investor. The
Investor and the Company acknowledge that WSGR is representing only the Company in this transaction. The Investor and the Company
understands that an affiliate of WSGR may also be an Investor under this Agreement. Pursuant to Rule 3-310 of the Rules of Professional
Conduct promulgated by the State Bar of California, an attorney must avoid representations in which the attorney has or had a relationship
with another party interested in the representation without the informed written consent of all parties affected. By executing
this Agreement, each of the Investors and the Company hereby waives any actual or potential conflict of interest which may arise
as a result of WSGR’s representation of such persons and entities, WSGR’s possession of such confidential information
and the participation by WSGR’s affiliate in the financing. Each of the Investors and the Company represents that it has
had the opportunity to consult with independent counsel concerning the giving of this waiver.

 

(Signature Page Follows)

 

    	 	-4-	 

     

    

 

The foregoing Note Subscription Agreement
is hereby confirmed and accepted by the Company as of May 18, 2021.

 

	 	 	Tenon Medical, Inc. 
	 	 	
	 	 	By:	/s/ Kal Mentak
	 	 		Kal Mentak 
	 	 		Chief Executive Officer 
	 	 	 
	 	 	/s/ Richard Ginn
	Note Amount:	 	(Signature)
	$100,000.00	 	 
		 	Richard Ginn
	 	 	(Print Name) 
	 	 	 
	 	 	 
	 	 	(Investor Name: name as it should appear on the Note, if different than above) 

 

[Signature page for Note Subscription Agreement]

 

    	 	 	 

     

    

 

Exhibit A

 

FORM OF CONVERTIBLE PROMISSORY NOTE

 

(form starts on next page)

 

    	 	 	 

     

    

 

THIS NOTE AND THE SECURITIES ISSUABLE UPON
THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE
SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED
EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION
THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER,
SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

TENON MEDICAL, INC.

 

CONVERTIBLE PROMISSORY
NOTE

 

	$100,000	May 18, 2021

 

FOR VALUE RECEIVED, Tenon
Medical, Inc., a Delaware corporation (the “Company”) promises to pay to Richard Ginn (“Investor”),
or its registered assigns, in lawful money of the United States of America the principal sum of One Hundred Thousand Dollars ($100,000),
or such lesser amount as shall equal the outstanding principal amount hereof, together with interest from the date of this Convertible
Promissory Note (this “Note”) on the unpaid principal balance at a rate equal to eight percent (8%) per annum,
computed on the basis of the actual number of days elapsed and a year of 365 days. All unpaid principal, together with any then
unpaid and accrued interest and other amounts payable hereunder, shall be due and payable on the earlier of (i) the 12 month anniversary
of the first sale and issuance of any convertible promissory note pursuant to any Note Subscription Agreement (the “Maturity
Date”) following written demand by a Majority in Interest of the Investors, or (ii) when, upon the occurrence and during
the continuance of an Event of Default, such amounts are declared due and payable by Investor or made automatically due and payable,
in each case, in accordance with the terms hereof. This Note is one of a series of similar convertible promissory notes (collectively,
the “Notes”), each executed and delivered pursuant to a note subscription agreement in a form substantially
similar to the Note Subscription Agreement pursuant to which this Note was issued under.

 

The following is a statement
of the rights of Investor and the conditions to which this Note is subject, and to which Investor, by the acceptance of this Note,
agrees:

 

1.             Payments.

 

(a)           Interest.
Accrued interest on this Note shall be payable at maturity.

 

(b)           Voluntary
Prepayment. This Note may not be prepaid, without the written consent of a Majority in Interest of Investors.

 

2.             Events
of Default. The occurrence of any of the following shall constitute an “Event of Default” under this
Note and the other Transaction Documents:

 

(a)           Failure
to Pay. The Company shall fail to pay (i) when due any principal payment on the due date hereunder or (ii) any interest payment
or other payment required under the terms of this Note or any other Transaction Document on the date due and such payment shall
not have been made within twenty (20) Business Days of the Company’s receipt of written notice to the Company of such failure
to pay; or

 

    	 	-2-	 

     

    

 

(b)           Voluntary
Bankruptcy or Insolvency Proceedings. The Company shall (i) apply for or consent to the appointment of a receiver, trustee,
liquidator or custodian of itself or of all or a substantial part of its property, (ii) admit in writing its inability to pay its
debts generally as they mature, (iii) make a general assignment for the benefit of its or any of its creditors, (iv) be dissolved
or liquidated, (v) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect
to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such
relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding
commenced against it, or (vi) take any action for the purpose of effecting any of the foregoing; or

 

(c)           Involuntary
Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver, trustee, liquidator or custodian of the
Company, or of all or a substantial part of the property thereof, or an involuntary case or other proceedings seeking liquidation,
reorganization or other relief with respect to the Company or any of its Subsidiaries, if any, or the debts thereof under any bankruptcy,
insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding
shall not be dismissed or discharged within 45 days of commencement.

 

3.             Rights
of Investor upon Default. Upon the occurrence of any Event of Default (other than an Event of Default described in Sections
2(b) or 2(c)) and at any time thereafter during the continuance of such Event of Default, Investor may, with the written
consent of a Majority in Interest of Investors, by written notice to the Company, declare all outstanding Obligations payable by
the Company hereunder to be immediately due and payable without presentment, demand, protest or any other notice of any kind, all
of which are hereby expressly waived, anything contained herein or in the other Transaction Documents to the contrary notwithstanding.
Upon the occurrence of any Event of Default described in Sections 2(b) and 2(c), immediately and without notice,
all outstanding Obligations payable by the Company hereunder shall automatically become immediately due and payable, without presentment,
demand, protest or any other notice of any kind, all of which are hereby expressly waived, anything contained herein or in the
other Transaction Documents to the contrary notwithstanding. In addition to the foregoing remedies, upon the occurrence and during
the continuance of any Event of Default, Investor may, with the written consent of a Majority in Interest of Investors, exercise
any other right power or remedy granted to it by the Transaction Documents or otherwise permitted to it by law, either by suit
in equity or by action at law, or both.

 

4.             Conversion.

 

(a)           Automatic
Conversion upon an Initial Public Offering. If an Initial Public Offering occurs prior to the payment in full of the principal
amount of this Note, then the outstanding principal amount of this Note and all accrued and unpaid interest on this Note shall
automatically convert immediately prior to such Initial Public Offering, into fully paid and nonassessable shares of the Company’s
common stock at a price per share equal the lesser of (i) to an amount obtained by dividing (x) $22,500,000 by (y) the Fully Diluted
Capitalization of the Company, and (ii) the IPO Conversion Price. The Company shall provide the Investors written notice of any
potential Initial Public Offering at least ten (10) business days prior to the consummation of such Initial Public Offering.

 

(b)           Automatic
Conversion upon a Qualified Financing. If a Qualified Financing occurs on or prior to the Maturity Date, then the outstanding
principal amount of this Note, and all accrued and unpaid interest on this Note, shall automatically convert into fully paid and
nonassessable shares of the capital stock issued and sold in such Qualified Financing at a price per share equal to the lesser
of (i) an amount obtained by dividing (x) $22,500,000 by (y) the Fully Diluted Capitalization of the Company, with any fractional
shares rounded down and (i) at the Qualified Financing Conversion Price, with any fractional shares rounded down.

 

    	 	-3-	 

     

    

 

(c)           Conversion
upon a Change of Control. If a Change of Control occurs prior to a Qualified Financing or Initial Public Offering and prior
to the payment in full of the principal amount of this Note, and:

 

(i)       if
the proceeds to be received by Investor in such Change of Control if the Investor had converted pursuant to this Section 4(c)(i)
is greater than the accrued and unpaid interest of this Note plus 200% of the outstanding principal of this Note, then the
outstanding principal amount of this Note, and all accrued and unpaid interest on this Note, shall automatically convert into fully
paid and nonassessable shares of the Common Stock at a price per share equal to an amount obtained by dividing (x) $22,500,000
by (y) the Fully Diluted Capitalization of the Company; or

 

(ii)       if
the proceeds received in such Change of Control by Investor if the Investor had converted pursuant to Section 4(c)(i) is
less than the accrued and unpaid interest of this Note plus 200% of the outstanding principal of this Note, then the outstanding
principal amount of this Note, plus all accrued and unpaid interest, in each case that has not otherwise been converted into equity
securities pursuant to Section 4, shall be due and payable immediately prior to the closing of such Change of Control, together
with a premium equal to 100% of the outstanding principal amount to be repaid

 

(d)           Conversion
Procedure.

 

(i)       Conversion
Pursuant to Section 4(a). If this Note is to be automatically converted in accordance with Section 4(a), written notice
shall be delivered to Investor at the address last shown on the records of the Company for Investor or given by Investor to the
Company for the purpose of notice, notifying Investor of the conversion to be effected, specifying the IPO Conversion Price, the
principal amount of the Note to be converted, together with all accrued and unpaid interest, the date on which such conversion
is expected to occur and calling upon such Investor to surrender to the Company, in the manner and at the place designated, the
Note. Upon such conversion of this Note, Investor hereby agrees to execute and deliver to the Company a lock-up agreement in connection
with an Initial Public Offering in substantially the same form of lock-up agreement and other related agreements necessary to consummate
the Initial Public Offering. Investor also agrees to deliver the original of this Note (or a notice to the effect that the original
Note has been lost, stolen or destroyed and an agreement acceptable to the Company whereby the holder agrees to indemnify the Company
from any loss incurred by it in connection with this Note) at the closing of the Initial Public Offering for cancellation; provided,
however, that upon the closing of the Initial Public Offering, this Note shall be deemed converted and of no further force
and effect, whether or not it is delivered for cancellation as set forth in this sentence. The Company shall, as soon as practicable
thereafter, issue and deliver to such Investor a certificate or certificates for the number of shares to which Investor shall be
entitled upon such conversion. Any conversion of this Note pursuant to Section 4(a) shall be deemed to have been made immediately
prior to the closing of the Initial Public Offering, and if applicable and on and after such date the Persons entitled to receive
the shares issuable upon such conversion shall be treated for all purposes as the record holder of such shares.

 

    	 	-4-	 

     

    

 

(ii)       Conversion
Pursuant to Section 4(b). If this Note is to be automatically converted in accordance with Section 4(b), written notice
shall be delivered to Investor at the address last shown on the records of the Company for Investor or given by Investor to the
Company for the purpose of notice, notifying Investor of the conversion to be effected, specifying the Qualified Financing Conversion
Price, the principal amount of the Note to be converted, together with all accrued and unpaid interest, the date on which such
conversion is expected to occur and calling upon such Investor to surrender to the Company, in the manner and at the place designated,
the Note. Upon such conversion of this Note, Investor hereby agrees to execute and deliver to the Company all transaction documents
entered into by other purchasers participating in the Qualified Financing, including a purchase agreement, an investor rights agreement
and other ancillary agreements, with customary representations and warranties and transfer restrictions (including, without limitation,
a 180-day lock-up agreement in connection with an initial public offering). Investor also agrees to deliver the original of this
Note (or a notice to the effect that the original Note has been lost, stolen or destroyed and an agreement acceptable to the Company
whereby the holder agrees to indemnify the Company from any loss incurred by it in connection with this Note) at the closing of
the Qualified Financing for cancellation; provided, however, that upon the closing of the Qualified Financing, this Note
shall be deemed converted and of no further force and effect, whether or not it is delivered for cancellation as set forth in this
sentence. The Company shall, as soon as practicable thereafter, issue and deliver to such Investor a certificate or certificates
for the number of shares to which Investor shall be entitled upon such conversion. Any conversion of this Note pursuant to Section
4(b) shall be deemed to have been made immediately prior to the closing of the Qualified Financing and on and after such date
the Persons entitled to receive the shares issuable upon such conversion shall be treated for all purposes as the record holder
of such shares.

 

(iii)       Conversion
Pursuant to Section 4(c). Before Investor shall be entitled to convert this Note into the applicable shares of the Company’s
stock in accordance with Section 4(c), it shall surrender this Note (or a notice to the effect that the original Note has
been lost, stolen or destroyed and an agreement acceptable to the Company whereby the holder agrees to indemnify the Company from
any loss incurred by it in connection with this Note) and give written notice to the Company at its principal corporate office
of the election to convert the same pursuant to Section 4(c), and shall state therein the amount of the unpaid principal
amount of this Note to be converted. Upon such conversion of this Note, Investor hereby agrees to execute and deliver to the Company
a purchase agreement and other ancillary agreements, with customary representations and warranties and transfer restrictions (including,
without limitation, a 180-day lock-up agreement in connection with an initial public offering), and shall be bound upon such conversion
by any transfer restrictions applicable to any of the shares or holders thereof. The Company shall, as soon as practicable thereafter,
issue and deliver to such Investor a certificate or certificates (or a notice of issuance of uncertificated shares, if applicable)
for the number of shares to which Investor shall be entitled upon such conversion, including a check payable to Investor for any
cash amounts payable as described in Section 4(d)(iv). Any conversion of this Note pursuant to Section 4(c) shall
be deemed to have been made upon the satisfaction of all of the conditions set forth in this Section 4(d)(iii) and on and
after such date the Persons entitled to receive the shares issuable upon such conversion shall be treated for all purposes as the
record holder of such shares.

 

(iv)       Fractional
Shares; Effect of Conversion. No fractional shares shall be issued upon conversion of this Note. Upon conversion of
this Note in full, Company shall be forever released from all its obligations and liabilities under this Note and this Note shall
be deemed of no further force or effect, whether or not the original of this Note has been delivered to the Company for cancellation.

 

5.             Definitions.
As used in this Note, the following capitalized terms have the following meanings:

 

“Change of Control”
shall mean (i) any “person” or “group” (within the meaning of Section 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended), becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange
Act of 1934, as amended), directly or indirectly, of more than 50% of the outstanding voting securities of the Company having the
right to vote for the election of members of the Board of Directors, (ii) any reorganization, merger or consolidation of the Company,
other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding
immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of
related transactions, at least a majority of the total voting power represented by the outstanding voting securities of the Company
or such other surviving or resulting entity or (iii) a sale, lease or other disposition of all or substantially all of the assets
of the Company.

 

    	 	-5-	 

     

    

 

“Event of Default” has the
meaning given in Section 2 hereof.

 

“Initial Public Offering” shall
mean the closing of the Company’s first firm commitment underwritten initial public offering of the Company’s common
stock pursuant to a registration statement filed under the Securities Act.

 

“Investor” shall mean the Person
specified in the introductory paragraph of this Note or any Person who shall at the time be the registered holder of this Note.

 

“Investors” shall mean the
investors that have purchased Notes.

 

“IPO Conversion Price” shall
mean a price per share equal to 70% of the price per share (prior to underwriting discounts and commissions) of the Company’s
common stock sold in the Initial Public Offering.

 

“Fully Diluted Capitalization”
shall mean, as of immediately prior to automatic conversion of this Note, the sum of (i) the outstanding shares of common stock
of the Company; (ii) the shares of common stock of the Company directly or indirectly issuable upon conversion or exchange of all
outstanding securities directly or indirectly convertible into or exchangeable for common stock of the Company and the exercise
of all outstanding options and warrants; and (iii) except for conversion in connection with a Change of Control, the shares of
common stock of the Company reserved, but neither issued nor the subject of outstanding awards, under any equity incentive or similar
plan of the Company; provided that Fully Diluted Capitalization shall not include (i) the Notes and the securities directly or
indirectly issuable upon conversion or exchange of the Notes, (ii) other outstanding convertible promissory notes and any related
warrants and the securities directly or indirectly issuable upon conversion or exchange of such other outstanding convertible promissory
notes and the exercise of any such related warrants, or (iii) in any automatic conversion or any voluntary conversion relating
to a financing, any securities issued in the financing, any shares of common stock of the Company directly or indirectly issuable
upon conversion, exchange or exercise of such securities and any increase in the number of shares reserved for issuance under the
Company’s equity incentive or similar plans or arrangements in connection with the financing.

 

“Majority in Interest
of Investors” shall mean Investors holding more than 50% of the aggregate outstanding principal amount of the Notes.

 

“Note Subscription
Agreement” and “Note Subscription Agreements” shall mean the Note Subscription Agreement (the “Note
Subscription Agreement”) pursuant to which this Note was issued under, by and between the Company and Investor, together
with all other Note Subscription Agreements (the “Note Subscription Agreements”) in a form substantially similar
to the Note Subscription Agreement, each by and between the Company and the investor set forth on the signature pages thereto.

 

“Notes” shall mean the convertible
promissory notes issued pursuant to the Note Subscription Agreements.

 

“Obligations”
shall mean and include all loans, advances, debts, liabilities and obligations, howsoever arising, owed by the Company to Investor
of every kind and description, now existing or hereafter arising under or pursuant to the terms of this Note and the other Transaction
Documents, including, all interest, fees, charges, expenses, attorneys’ fees and costs and accountants’ fees and costs
chargeable to and payable by the Company hereunder and thereunder, in each case, whether direct or indirect, absolute or contingent,
due or to become due, and whether or not arising after the commencement of a proceeding under Title 11 of the United States Code
(11 U. S. C. Section 101 et seq.), as amended from time to time (including post-petition interest) and whether or not allowed
or allowable as a claim in any such proceeding. Notwithstanding the foregoing, the term “Obligations” shall not include
any obligations of Company under or with respect to any warrants to purchase Company’s capital stock.

 

    	 	-6-	 

     

    

 

“Person”
shall mean and include an individual, a partnership, a corporation (including a business trust), a joint stock company, a limited
liability company, an unincorporated association, a joint venture or other entity or a governmental authority.

 

“Qualified Financing”
is a transaction or series of transactions pursuant to which the Company issues and sells shares of its capital stock for aggregate
gross proceeds of at least $5,000,000 (excluding all proceeds from the incurrence of indebtedness that is converted into such capital
stock, or otherwise cancelled in consideration for the issuance of such capital stock) with the principal purpose of raising capital.

 

“Qualified Financing
Conversion Price” shall mean a price per share equal to seventy percent (70%) of the price per share paid by the other
cash purchasers of the capital stock sold in the Qualified Financing.

 

“Securities Act” shall mean
the Securities Act of 1933, as amended.

 

“Transaction Documents”
shall mean this Note, each of the other Notes, the Note Subscription Agreement pursuant to which this Note was issued under, and
all other Note Subscription Agreements.

 

6.             Miscellaneous.

 

(a)           Successors
and Assigns; Transfer of this Note or Securities Issuable on Conversion Hereof; No Transfers to Bad Actors; Notice of Bad Actor
Status.

 

(i)       Subject
to the restrictions on transfer described in this Section 6(a), the rights and obligations of the Company and Investor shall
be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

 

(ii)       With
respect to any offer, sale or other disposition of this Note or securities into which such Note may be converted, Investor will
give written notice to the Company prior thereto, describing briefly the manner thereof, together with a written opinion of Investor’s
counsel, or other evidence if reasonably satisfactory to the Company, to the effect that such offer, sale or other distribution
may be effected without registration or qualification (under any federal or state law then in effect). Upon receiving such written
notice and reasonably satisfactory opinion, if so requested, or other evidence, the Company, as promptly as practicable, shall
notify Investor that Investor may sell or otherwise dispose of this Note or such securities, all in accordance with the terms of
the notice delivered to the Company. If a determination has been made pursuant to this Section 6(a) that the opinion of
counsel for Investor, or other evidence, is not reasonably satisfactory to the Company, the Company shall so notify Investor promptly
after such determination has been made. Each Note thus transferred and each certificate representing the securities thus transferred
shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with the Securities Act,
unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the Securities
Act. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions. Subject to the
foregoing, transfers of this Note shall be registered upon registration books maintained for such purpose by or on behalf of the
Company as provided in the Note Subscription Agreement. Prior to presentation of this Note for registration of transfer, the Company
shall treat the registered holder hereof as the owner and holder of this Note for the purpose of receiving all payments of principal
and interest hereon and for all other purposes whatsoever, whether or not this Note shall be overdue and the Company shall not
be affected by notice to the contrary.

 

    	 	-7-	 

     

    

 

(iii)       Investor
agrees not to sell, assign, transfer, pledge or otherwise dispose of any securities of the Company, or any beneficial interest
therein, to any person (other than the Company) unless and until the proposed transferee confirms to the reasonable satisfaction
of the Company that neither the proposed transferee nor any of its directors, executive officers, other officers that may serve
as a director or officer of any company in which it invests, general partners or managing members nor any person that would be
deemed a beneficial owner of those securities (in accordance with Rule 506(d) of the Securities Act) is subject to any of the “bad
actor” disqualifications described in Rule 506(d)(1)(i) through (viii) under the Securities Act, except as set forth in Rule
506(d)(2) or (d)(3) under the Securities Act and disclosed, reasonably in advance of the transfer, in writing in reasonable detail
to the Company. Investor will promptly notify the Company in writing if Investor or, to Investor’s knowledge, any person
specified in Rule 506(d)(1) under the Securities Act becomes subject to any of the “bad actor” disqualifications described
in Rule 506(d)(1)(i) through (viii) under the Securities Act.

 

(b)           Waiver
and Amendment. Any provision of this Note may be amended, waived or modified upon the written consent of the Company and a
Majority in Interest of Investors; provided, however, that no such amendment, waiver or consent shall: (i) reduce
the principal amount of this Note without Investor’s written consent, or (ii) reduce the rate of interest of this Note without
Investor’s written consent.

 

(c)           Notices.
All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall be in
writing and faxed, mailed or delivered to each party at the respective addresses of the parties as set forth in the Note Subscription
Agreement, or at such other address or facsimile number as the Company shall have furnished to Investor in writing. All such notices
and communications will be deemed effectively given the earlier of (i) when received, (ii) when delivered personally, (iii) one
business day after being delivered by facsimile (with receipt of appropriate confirmation), (iv) one business day after being
deposited with an overnight courier service of recognized standing or (v) four days after being deposited in the U.S. mail, first
class with postage prepaid.

 

(d)           Pari
Passu Notes. Investor acknowledges and agrees that the payment of all or any portion of the outstanding principal amount of
this Note and all interest hereon shall be pari passu in right of payment and in all other respects to the other Notes. In the
event Investor receives payments in excess of its pro rata share of the Company’s payments to the Investors of all of the
Notes, then Investor shall hold in trust all such excess payments for the benefit of the holders of the other Notes and shall pay
such amounts held in trust to such other holders upon demand by such holders.

 

(e)           Payment.
Unless converted into the Company’s equity securities pursuant to the terms hereof, payment shall be made in lawful tender
of the United States.

 

(f)           Usury.
In the event any interest is paid on this Note which is deemed to be in excess of the then legal maximum rate, then that portion
of the interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment of principal
and applied against the principal of this Note.

 

(g)           Waivers.
The Company hereby waives notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor and
all other notices or demands relative to this instrument.

 

    	 	-8-	 

     

    

 

(h)           Governing
Law. This Note and all actions arising out of or in connection with this Note shall be governed by and construed in accordance
with the laws of the State of California, without regard to the conflicts of law provisions of the State of California, or of any
other state.

 

(i)           Waiver
of Jury Trial; Judicial Reference. By acceptance of this Note, Investor hereby agrees and the Company hereby agrees to waive
their respective rights to a jury trial of any claim or cause of action based upon or arising out of this Note or any of the Transaction
Documents. If the jury waiver set forth in this paragraph is not enforceable, then any claim or cause of action arising out of
or relating to this Note, the Transaction Documents or any of the transactions contemplated therein shall be settled by judicial
reference pursuant to Code of Civil Procedure Section 638 et seq. before a referee sitting without a jury, such referee to be mutually
acceptable to the parties or, if no agreement is reached, by a referee appointed by the Presiding Judge of the California Superior
Court for Santa Clara County. This paragraph shall not restrict a party from exercising remedies under the Uniform Commercial Code
or from exercising pre-judgment remedies under applicable law.

 

(Signature Page Follows)

 

    	 	-9-	 

     

    

 

The Company has caused
this Convertible Promissory Note to be issued as of the date first written above.

 

	 	TENON MEDICAL, INC.
	 	a Delaware corporation
	 	 	 
	 	By:	/s/ Kal Mentak
	 	Name:	Kal Mentak
	 	Title:	CEO

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