Document:

STOCK
OPTION GRANT AGREEMENT

 

TO
ISRAELI NON-EMPLOYEES AND CONTROLLING SHAREHOLDERS

 

UNDER
THE MOTUS GI HOLDINGS, INC. 2016 EQUITY INCENTIVE PLAN

 

This
Stock Option Grant Agreement (the “Grant Agreement”) is made and entered into effective on the Date of Grant
set forth in Exhibit A (the “Date of Grant”) by and between Motus GI Holdings, Inc., a Delaware corporation
(the “Company”), and the individual named in Exhibit A hereto (the “Optionee”).

 

WHEREAS,
the Company desires to provide the Optionee an incentive to participate in the success and growth of the Company through the opportunity
to earn a proprietary interest in the Company; and

 

WHEREAS,
to give effect to the foregoing intention, the Company desires to grant the Optionee an option pursuant to the Motus GI Holdings,
Inc. 2016 Equity Incentive Plan, including the Motus GI Holdings, Inc. 2016 Israeli Sub-Plan (together, the “Plan”)
to acquire the Company’s common stock, par value $.0001 per share (the ”Common Stock”), subject to the
terms of this Grant Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth and for good and valuable consideration, the parties
hereto agree as follows:

 

1.
Grant. The Company hereby grants the Optionee a Stock Option (the “Option”) to purchase up to the number
of shares of Common Stock (the “Shares”) set forth in Exhibit A hereto at the exercise price per Share
(the “Exercise Price”) set forth in Exhibit A, and on the vesting schedule set forth in Exhibit A,
subject to the terms and conditions set forth herein and the provisions of the Plan and the trust agreement by and between the
Trustee and the Company, as may be amended from time to time by the Company and the Trustee at their sole discretion (the “Trust
Agreement”), the terms of which are incorporated herein by reference. An executed copy of the Trust Agreement has been
provided to Optionee or made available for his or her review. Capitalized terms used but not otherwise defined in this Grant Agreement
shall have the meanings as set forth in the Plan. 

 

The
Option will be issued to the Trustee. The Trustee will hold in trust for the benefit of the Optionee, the Option, any Shares issued
upon exercise of the Option and all other securities received following any exercise or realization of rights, including bonus
shares.

 

2.
Exercise Period Following Termination of Continuous Service. This Option shall terminate and be canceled to the extent
not exercised within ninety (90) days after the Optionee’s Continuous Service terminates, except that if such termination
is due to the death or Disability of the Optionee, this Option shall terminate and be canceled twelve (12) months from the date
of termination of Continuous Service. Notwithstanding the foregoing, in the event that the Optionee’s Continuous Service
is terminated for Cause, then the Option shall immediately terminate on the date of such termination of Continuous Service and
shall not be exercisable for any period following such date. In no event, however, shall this Option be exercised later than the
Expiration Date set forth in Exhibit A and in no event shall this Option be exercised for more Shares than the Shares which
otherwise have become exercisable as of the date of termination. 

 

    	 	 	 

    	 

    

 

3.
Method of Exercise. This Option is exercisable by delivery to both the Company and the Trustee, as applicable, of an exercise
notice (the “Exercise Notice”) in a form satisfactory to both the Committee and the Trustee, as applicable,
or by such other form or means as the Committee and the Trustee may permit or require. Any Exercise Notice shall state or provide
the number of Shares with respect to which the Option is being exercised (the “Exercised Shares”), and include
such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan. The Exercise
Notice shall be accompanied by payment of the aggregate Exercise Price for the Exercised Shares in (i) cash; (ii) check; or (iii)
such other manner as is acceptable to the Committee, provided that such form of consideration is permitted by the Plan and by
applicable law. The Company and the Trustee shall not release to Optionee any (i) Option, (ii) Shares issued upon the exercise
of the Option or (iii) rights resulting from such Option or Shares, prior to full payment of the Exercise Price and all the tax
liabilities in a method determined by the Company and the Trustee, at their sole discretion. Notwithstanding the foregoing, no
Exercised Shares shall be issued unless such exercise and issuance complies with the requirements of applicable law, including,
without limitation, the Ordinance.

 

4.
Covenants Agreement. This Option shall be subject to forfeiture at the election of the Company in the event that the Optionee
breaches any agreement between the Optionee and the Company with respect to noncompetition, nonsolicitation, assignment of inventions
and contributions and/or nondisclosure obligations of the Optionee.

 

5.
Taxes. By executing this Grant Agreement, Optionee acknowledges and agrees that Optionee is solely responsible for the
satisfaction of any applicable taxes that may be imposed on Optionee that arise as a result of the grant, vesting or exercise
of the Option, and that neither the Company nor the Committee, an Affiliate or the Trustee shall have any obligation whatsoever
to pay such taxes (including interest or penalty thereon). Without derogating from the above, the Company does not represent or
warrant that the Option (or the purchase or sale of Shares issued upon exercise of the Option) will be subject to a particular
tax treatment. The Optionee acknowledges that he or she has reviewed the tax treatment of the Option (including the purchase or
sale of Shares issued upon exercise of the Option) with his or her own tax advisors and is relying solely on those advisors in
that regard. The Optionee shall indemnify the Company, an Affiliate and/or the Trustee, as applicable, and hold them harmless
against and from any and all liabilities for any such taxes, including without limitation liabilities relating to the necessity
to withhold or to have withheld any such taxes from any payment made by the Optionee. 

 

The
Company, an Affiliate and/or the Trustee, as applicable, shall be entitled to withhold taxes as required under applicable law,
rules and regulations. The Company, an Affiliate and/or the Trustee, as applicable, shall not be required to release any Option
and/or Shares until all required tax payments have been fully made to the full satisfaction of the Company, an Affiliate and/or
the Trustee, as applicable.

 

    	 	-2-	 

    	 

    

 

In
the event that the Optionee’s employment or service by the Company, or any Affiliate thereof, terminates for any reason,
the Optionee will be obligated to provide the Company or its Affiliate, upon the termination of his or her employment or service,
with a security or guarantee to cover any future tax obligation resulting from the grant, exercise or disposition of the Option,
the Shares issuable upon the exercise thereof, or any rights resulting therefrom, in a form satisfactory to the Company or its
Affiliate, as the case may be in its sole discretion.

 

6.
Non-Transferability of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of
descent or distribution and may be exercised during the lifetime of the Optionee only by the Optionee. The terms of the Plan and
this Grant Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

 

7.
Securities Matters. All Shares and Exercised Shares shall be subject to the restrictions on sale, encumbrance and other
disposition provided by law, including without limitation, the requirements of Section 3(i) of the Ordinance. The Company at its
discretion may impose restrictions upon the sale, pledge or other transfer of such Shares (including the placement of appropriate
legends on stock certificates or the imposition of stop-transfer instructions) if, in the judgment of the Company, such restrictions
are necessary in order to achieve compliance with the Securities Act or the securities laws of any state or any other law.

 

8.
Investment Purpose. The Optionee represents and warrants that unless the Shares are registered under the Securities Act,
any and all Shares acquired by the Optionee under this Grant Agreement will be acquired for investment for the Optionee’s
own account and not with a view to, for resale in connection with, or with an intent of participating directly or indirectly in,
any distribution of such Shares within the meaning of the Securities Act. 

 

9.
Lock-Up Agreement. The Optionee hereby agrees that in the event that the Optionee exercises this Option during a period
in which any directors or officers of the Company have agreed with one or more underwriters not to sell securities of the Company,
then, as a condition to such exercise, the Optionee shall enter into an agreement, in form and substance satisfactory to the Company,
pursuant to which the Optionee shall agree to restrictions on transferability of the Shares comparable to the restrictions agreed
upon by such directors or officers of the Company. 

 

10.
Other Plans. No amounts of income received by the Optionee pursuant to this Grant Agreement shall be considered compensation
for purposes of any pension or retirement plan, insurance plan or any other employee benefit plan of the Company or its subsidiaries,
unless otherwise expressly provided in such plan.

 

    	 	-3-	 

    	 

    

 

11.
No Guarantee of Continued Service. The Optionee acknowledges and agrees that the right to exercise the Option pursuant
to the exercise schedule hereof is earned only through Continuous Service and such other requirements, if any, as are set forth
in Exhibit A (and not through the act of being hired, being granted an option or purchasing shares hereunder). The Optionee
further acknowledges and agrees that (i) this Grant Agreement, the transactions contemplated hereunder and the exercise schedule
set forth herein do not constitute an express or implied promise of continued employment or service for the exercise period or
for any other period, and shall not interfere with the Optionee’s right or the right of the Company or its Subsidiaries
to terminate the employment or service relationship at any time, with or without cause, subject to the terms of any written employment
agreement that the Optionee may have entered into with the Company or any of its Subsidiaries; and (ii) the Company would not
have granted this Option to the Optionee but for these acknowledgements and agreements.

 

12.
Entire Agreement; Governing Law. The Plan is incorporated herein by reference. The Plan and this Grant Agreement constitute
the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings
and agreements of the Company and the Optionee with respect to the subject matter hereof, and may not be modified adversely to
the Optionee’s interest except by means of a writing signed by the Company and the Optionee. In the event of any conflict
between this Grant Agreement and the Plan, the Plan shall be controlling, except as otherwise specifically provided in the Plan.
This Grant Agreement shall be construed under the laws of the State of Israel, without regard to conflict of laws principles.
The competent courts in Tel-Aviv shall have sole jurisdiction in any matters pertaining to this Grant Agreement.

 

13.
Opportunity for Review. Optionee and the Company agree that this Option is granted under and governed by the terms and
conditions of the Plan and this Grant Agreement. The Optionee has reviewed the Plan and this Grant Agreement in their entirety,
has had an opportunity to obtain the advice of counsel prior to executing this Grant Agreement and fully understands all provisions
of the Plan and this Grant Agreement. The Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations
of the Committee upon any questions relating to the Plan and this Grant Agreement. The Optionee further agrees to notify the Company
upon any change in his or her residence address.

 

The
Optionee and the Company further agree that the Option is granted under and governed by Section 3(i) of the Ordinance, including
any regulations, rules, orders and procedures promulgated thereunder and the Trust Agreement. Optionee confirms that he or she
is familiar with the terms and provisions of Section 3(i) of the Ordinance, including any regulations, rules, orders and procedures
promulgated thereunder and the Trust Agreement and undertakes not to exercise and not to sell any Option or Shares unless the
Optionee pays all taxes which may arise in connection with such exercise and/or sale and/or transfer.

 

[Signature
Page Follows]

 

    	 	-4-	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Grant Agreement as of the date set forth in Exhibit A.

 

	 	MOTUS
    GI HOLDINGS, INC.
	 	 	 
	 	By:	                                          
	 	Name:	 
	 	Title:	 
	 	 	 
	 	OPTIONEE
	 	 	 
	 	                                          
	 	Name:	 

 

    	 	-5-	 

    	 

    

 

EXHIBIT
A

 

STOCK
OPTION GRANT AGREEMENT

 

MOTUS
GI HOLDINGS, INC.

 

(a).
Optionee’s Name: ________________________________________________________

 

(b).
Date of Grant: _______________________________________

 

(c).
Number of Shares Subject to the Option: ______________________________________

 

(d).
Exercise Price: $______ per Share

 

(e).
Designation: 3(i) Award

 

(f).
Expiration Date: ____________________________

 

(g).
Vesting Schedule:

 

 

 

 

_______
(Initials)

Optionee

 

_______
(Initials)

Company
Signatory

 

    	 	-6-Employment
Agreement

 

AGREEMENT,
dated as of December 22, 2016 (the “Agreement”), by and between Motus GI Holdings, Inc., a corporation
organized under the State of Delaware (the “Company”), and Mark Pomeranz (the “Executive”).

 

WHEREAS,
the Company wishes to enter into this Agreement to engage the Executive to provide services to the Company, and the Executive
wishes to be so engaged, pursuant to the terms and conditions hereinafter set forth.

 

NOW,
THEREFORE, in consideration of the premise and of the mutual covenants and agreements herein contained, it is hereby agreed
as follows:

 

ARTICLE
I

Employment
and Duties

 

1.01
General. Subject to the terms and conditions herein, the Executive shall serve as Chief Executive Officer of the Company,
reporting to the board of directors of the Company (the “Board”). In such capacity, the Executive shall perform
the duties and responsibilities to the Company commensurate with the Executive’s position and as may be reasonably assigned
to the Executive from time to time by the Board. The Executive’s principal place of employment shall be in New Jersey as
designated by the Company from time to time; provided, that the Executive understands and agrees that he shall spend an average
of approximately two weeks of every month traveling on Company business as reasonably required by the Company principally to the
Company’s offices in Haifa, Israel.

 

1.02
Exclusive Services. For so long as the Executive is employed by the Company, the Executive shall devote his full business
working time to his duties hereunder, shall faithfully serve the Company, shall in all respects conform to and comply with the
lawful and good faith directions and instructions given to him by the Board and shall use his best efforts to promote and serve
the interests of the Company. Further, the Executive shall not, directly or indirectly, render material compensatory services
to any other person or organization without the consent of the Board or otherwise engage in activities that would interfere significantly
with the faithful performance of his duties hereunder. Nothing herein shall be construed to prevent Executive from engaging in
civic and not-for-profit activities so long as such activities do not interfere with Executive’s performance of his duties
hereunder or present a conflict of interest with the Company.

 

ARTICLE
II

Term
of Employment

 

The
Executive’s employment under this Agreement shall commence effective as of December 22, 2016 (the “Effective
Date”), and shall, subject to the provisions regarding earlier termination in Section 4 below, terminate on December
22, 2019; provided, however, that the Term of the Executive’s employment shall be automatically extended
without further action of either party for additional one year periods, unless either party gives notice of non-renewal at least
6 months prior to the expiration of the then effective Term. The period from the Effective Date until the termination of the Executive’s
employment under this Agreement is referred to as the “Term.”

 

    	 	-1-	 

     

    

 

ARTICLE
III

Compensation
and Other Benefits

 

Subject
to the provisions of this Agreement, the Company shall pay and provide the following compensation and other benefits to the Executive
during the Term as compensation for services rendered hereunder:

 

3.01
Base Salary. The Company shall pay to the Executive an annual salary (the “Base Salary”) at the rate
of $350,000, payable monthly in substantially equal installments in accordance with the Company’s ordinary payroll practices
as established from time to time.

 

3.02
Signing Bonus. The Executive shall be receive a one-time signing bonus of $70,000 (the “Signing Bonus”),
payable within 30 days of, and contingent upon, the closing of the share exchange of the Company with Motus GI Medical Technologies
Ltd. and the initial closing of the current private placement offering of the Company, and provided the Executive remains employed
by the Company as of such date.

 

3.03
Performance Bonus. Each year the Executive shall be eligible to receive a performance-based bonus of up to 25% of his Base
Salary (the “Annual Bonus”), based upon his achievement of certain objectives as determined by the Compensation Committee
of the Board (the “Compensation Committee”). The determination of whether such objectives have been achieved
shall be made by the Compensation Committee in its sole judgment and discretion. The Annual Bonus shall only be deemed earned
and payable if the Executive is actively employed in good standing by the Company on the date such bonuses are paid, which shall
in no event be later than March 15 of the subsequent year to which said Annual Bonus is attributable.

 

3.04
Equity Interest.

 

Subject
to the terms of the Company’s 2016 Equity Incentive Plan (the “Plan”) and approval of the Board or the Compensation
Committee, upon or immediately following the final closing of the private placement offering of the Company’s common stock,
the Executive will be granted options to purchase up to the number of shares equal to three and three-fourths (3.75%) of the Fully-Diluted
(as defined in the Plan) shares of the Company’s common stock, on the terms and conditions determined by the Board or the
Compensation Committee, with an exercise price of $5.00 per share (provided that the Board or the Compensation Committee determines
that such exercise price represents no less than fair market value per share on the date of grant in accordance with the Plan).
Two percent (2.0%) of the shares subject to the option shall be fully vested immediately upon grant, one and one-half percent
(1.5%) of the shares subject to the option shall be vested on a vesting schedule to be determined by the Compensation Committee,
one-quarter of a percent (0.25%) of the shares subject to the option shall be vested three years from the Effective Date, and
other terms and conditions with respect to the option shall be determined by the Compensation Committee. During the Term, subject
to the terms and conditions established within the Plan or any successor equity compensation plan as may be in place from time
to time and separate award agreements, the Executive also shall be eligible to receive from time to time stock options, stock
unit awards, performance shares, performance units, incentive bonus awards, other cash-based awards and/or other stock-based awards
(as permitted by the Plan), in amounts, if any, to be approved by the Board or the Compensation Committee in its discretion.

 

    	 	-2-	 

     

    

 

The
Option Grant shall contain the following additional terms:

 

(1)
Upon the “change-in-control” of the Company, any unvested options shall become fully vested. “Change of Control”
shall mean the consummation of any one of the following events: (i) a sale, lease, transfer or other disposition of all or substantially
all of the assets of the Company; (ii) a consolidation or merger of the Company with or into any other corporation or other entity
or person, or any other corporate reorganization, in which the stockholders of the Company immediately prior to such consolidation,
merger or reorganization, own less than fifty percent (50%) of the Company’s outstanding voting power of the surviving entity
following the consolidation, merger or reorganization; or (iii) any transaction (or series of related transactions involving a
person or entity, or a group of affiliated persons or entities) in which in excess of fifty percent (50%) of the Company’s
then-outstanding voting power is transferred, excluding any consolidation or merger effected exclusively to change the domicile
of the Company and excluding any such change of voting power resulting from a bona tide equity financing event or public offering
of the stock of the Company.

 

(2)
If the Executive is terminated without Cause (as defined below), the Executive shall have six months from the date of termination
to exercise the option as to any Common Shares that have vested on or prior to the effective date of termination.

 

(3)
Any additional terms applicable to options based on the realized gross return of Series A Investors milestones shall vest and
be earned on the same schedule as the Series A Investor realization events.

 

(4)
Terms otherwise in accordance with the Company’s stock option plan as in effect as of the Effective Date.

 

3.05
Benefits. The Executive shall be eligible to participate in the Company’s health insurance plan (medical, dental
and vision), or to the extent eligible, another company’s health insurance plan, with the Company paying (or in the case
of another company paying, reimbursing) 75 percent of the cost of the health insurance premium and the Executive paying for the
remainder. The Executive shall also be eligible to participate in all benefit plans that the Company may from time to time sponsor
or provide the Executive access to.

 

3.06
Expenses. The Company shall reimburse the Executive for expenses reasonably incurred by the Executive in connection with
his employment hereunder, including mobile telephone costs, and in accordance with any Company policies and procedures then in
effect.

 

3.07
Business Travel. During the Term, the Executive shall be entitled to business class travel for all air travel related to
the performance of his services hereunder that exceeds five hours’ scheduled flying time in duration.

 

    	 	-3-	 

     

    

 

3.08
Vacation. The Executive shall be entitled to accrue four weeks’ (20 business days) vacation time per calendar year
commencing as of January 1, 2017. The Executive shall be permitted to carry over vacation time into the following calendar year;
provided, however that any unused, accrued vacation time shall expire two years following the applicable year in
which the vacation time was earned. The Executive shall receive payment for any unused, accrued vacation pay from Motus GI Medical
Technologies Ltd. as of the Effective Date of this Agreement.

 

ARTICLE
IV

Effect
of Termination of Employment

 

4.01
Voluntary; For Cause. If, during the Term, the Executive voluntarily terminates his employment or his employment is terminated
by the Company for Cause (defined below), then the Executive shall be entitled only to (i) unpaid Base Salary through and including
the date of termination, (ii) amounts or vested benefits (including the vested portion of the Option Grant) required to be paid
or provided by law or under any plan, program, policy or practice of the Company (together, “Accrued Compensation and
Benefits”), and (iii) reimbursement of business expenses pursuant to Section 3(e) herein. In addition, any unvested
portion of the Executive’s Option Grant and unpaid Bonus shall be forfeited without payment.

 

		(A)	Termination
    for “Cause” shall mean termination of the Executive’s employment because of:

 

	 	(1)	gross
    negligence or willful misconduct in the performance of the Executive’s duties hereunder, or if the Executive otherwise
    breaches this Agreetment;
	 	 	 
	 	(2)	the
    Executive’s failure to obey a lawful directive that is from the Board and appropriate to his position, which failure
    is not cured within 15 days written notice of the alleged failure to perform;
	 	 	 
	 	(3)	a
    material violation of the restrictive covenants described in Section 5 below or of any written employee conduct policy of
    the Company in effect from time to time; or
	 	 	 
	 	(4)	conviction
    of a felony or other serious crime; or
	 	 	 
	 	(5)	any
    other act or omission that results in material harm to the business, reputation of the Company.

 

4.02
Death; Disability; Without Cause. If, during the Term, the Executive dies or is permanently disabled, the Executive’s
employment is terminated by the Company without Cause, or the Executive resigns for “Good Reason” the Executive (or
his estate) shall receive: (i) his Accrued Compensation and Benefits, (ii) continued payments following his termination of his
Base Salary for twelve (12) months (the “Severance Payments”), (iii) reimbursement of business expenses pursuant
to Section 3(e) herein, and (iv) 25% of any unvested options shall upon such termination vest. Any unvested portion of the Executive’s
Option Grant and unpaid Bonus shall be forfeited without payment. If, following a termination of employment without Cause or due
to permanent disability, the Executive breaches the provisions of Section 5 below, the Executive shall not be eligible, as of
the date of such breach, for any additional Severance Payments, and any and all further obligations and agreements of the Company
with respect to such payments shall thereupon cease. Additionally, if, following a termination of employment without Cause or
due to permanent disability, the Executive accepts and commences alternate employment while receiving the Severance Payments,
the base compensation received by Executive from such alternate employment shall be applied as an offset against future Severance
Payments due the Executive. By way of example, if Executive is able to secure alternate employment at a monthly base salary rate
of $20,000, the Executive’s monthly Severance Payment would be reduced by $20,000 during the remaining severance period.

 

    	 	-4-	 

     

    

 

4.03
Termination by Executive. For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of
the following circumstances without Executive’s prior express written consent: (i) a material adverse change in the nature
of Executive’s title, duties or responsibilities with the Company that represents a material demotion from his title, duties
or responsibilities as in effect immediately prior to such change; (ii) a material breach of this Agreement by the Company; (iii)
a failure by the Company to make any payments to Executive when due, unless the payment is not material and is being contested
by the Company, in good faith; (iv) the Company’s performance of any illegal or civilly actionable act that materially damages
Executive’s reputation or is considered harassment under Federal or New York State law; or (v) a liquidation, bankruptcy
or receivership of the Company. Notwithstanding the foregoing, no Good Reason shall be deemed to exist with respect to the Company’s
acts described in clause (i) above, unless Executive shall have given written notice to the company specifying the Good Reason
with reasonable particularity within (ninety) 90 days after the date Executive first knew or should reasonably have known of the
occurrence of any such event and, within fifteen (15) days after such notice, the Company shall not have cured or eliminated the
problem or thing giving rise to such Good Reason; provided, however, that a repeated breach after notice and cure
of any provision of clause (i) above involving the same or substantially similar actions or conduct, shall be grounds for termination
for Good Reason without any additional notice from Executive.

 

4.04
Specified Employee. If the Executive is a “specified employee” within the meaning of Section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”) at the time of the Executive’s termination
of employment, amounts or benefits (including the Severance Payments) that are deferred compensation subject to Section 409A of
the Code, as determined in the reasonable discretion of the Company, that would otherwise be payable or provided during the six
month period immediately following the termination of employment will instead be paid or provided, with interest on any delayed
payment at the short-term applicable federal rate under Section 1274(d) of the Code (with monthly compounding and at the rate
published for the month prior to the month in which the Executive’s termination of employment occurs), on the first business
day after the date that is six months following the Executive’s termination of employment.

 

4.05
Notice of Termination. Any termination of employment by the Company or the Executive shall be communicated with 30 days’
advance notice and by a written “Notice of Termination” to the other party hereto provided in accordance with
Section 15 of this Agreement; provided, however, that in the event that the Company terminates the Executive for
Cause, then termination will be effective immediately. Notwithstanding the foregoing, if the termination is for Cause, the Notice
of Termination shall describe the basis for such termination, and if the termination for Cause is under the circumstances contemplated
in Section 4.01(A)(2), (3) and (5), the Executive shall have the opportunity to provide a written response to the Company
within five business days of receipt of the Notice of Termination.

 

    	 	-5-	 

     

    

 

ARTICLE
V

confidentiality
and other Restrictive Covenants

 

5.01
Confidentiality. Executive shall be provided with access to Confidential Information relating to Company, its business,
potential business or that of its clients and customers. “Confidential Information” includes all trade secrets, know-how,
show-how, theories, technical, operating, financial, and other business information, whether or not reduced to writing or other
medium and whether or not marked or labeled confidential, proprietary or the like, specifically including, but not limited to,
information regarding source codes, software programs, computer systems, concepts, creations, costs, plans, materials, enhancements,
research, specifications, works of authorship, techniques, documentation, models and systems, sales and pricing techniques, designs,
inventions, discoveries, products, improvements, modifications, methodology, processes, concepts, records, files, memoranda, reports,
plans, proposals, price lists, product development and project procedures. Confidential Information does not include general skills,
experience or information that is generally available to the public, other than information which has become generally available
as a result of Executive’s direct or indirect act or omission. With respect to Confidential Information of Company and its
clients and customers:

 

(A)
Executive will use Confidential Information only in the performance of Executive’s duties for Company. Executive will not
use Confidential Information at any time (during or after Executive’s employment with Company) for Executive’s personal
benefit, for the benefit of any other individual or entity, or in any manner adverse to the interests of Company and its clients
and customers except to the extent permitted by applicable law, including to enable Executive to exercise any protected legal
right he may have;

 

(B)
Executive will not disclose Confidential Information at any time (during or after Executive’s employment with Company) except
to authorized Company personnel, unless Company consents in advance in writing or unless the Confidential Information indisputably
becomes of public knowledge or enters the public domain (other than through Executive’s direct or indirect act or omission)
or as authorized by a court or regulatory agency.

 

(C)
Executive will safeguard the Confidential Information by all reasonable steps and abide by all policies and procedures of Company
in effect from time to time regarding storage, copying, destroying, and handling of documents; and

 

(D)
Executive will return or destroy all materials, models, software, prototypes and the like containing and/or relating to Confidential
Information, together with all other property of Company and its clients and customers, to Company when Executive’s employment
relationship with Company terminates or otherwise on demand and, at that time Executive will certify to Company, in writing and
under oath, that Executive has complied with this Agreement. Executive shall not retain any copies or reproductions of correspondence,
memoranda, reports, notebooks, drawings, photographs, databases, diskettes, or other documents or electronically stored information
of any kind relating in any way to the business, potential business or affairs of Company and its clients and customers.

 

    	 	-6-	 

     

    

 

(E)
Executive acknowledges receipt of the following notice under the Defend Trade Secrets Act: An individual will not be held criminally
or civilly liable under any federal or state trade secret law for the disclosure of a trade secret if he/she (i) makes such disclosure
in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney and such disclosure
is made solely for the purpose of reporting or investigating a suspected violation of law; or (ii) such disclosure was made in
a complaint or other document filed in a lawsuit or other proceeding if such filing is made under seal.

 

5.02
Obligations to Other Persons. Executive does not have any non-disclosure or other obligations to any other individual or
entity (including without limitation, any previous employer) concerning proprietary or confidential information that Executive
learned of during any previous employment or associations that would interfere with his ability to perform under this Agreement.
Executive shall not disclose to Company or induce Company to use any secret or confidential information or material belonging
to others, including, without limitation, Executive’s former employers, if any.

 

5.03
Covenants Against Competition and Solicitation.

 

 

(A)
Executive acknowledges and understands that, Executive’s position with Company affords Executive extensive access to Confidential
Information of the Company. Executive therefore agrees that during the course of Executive’s employment with Company and
for twelve (12) months after termination of Executive’s employment with Company (for any reason or no reason) (collectively,
“Restricted Period”), Executive shall not: (i) anywhere within the United States of America or any other country in
which the Company then conducts or proposes to conduct business, either directly or indirectly, as an owner, stockholder, member,
partner, joint venturer, officer, director, consultant, independent contractor, agent or executive, engage in any business or
other commercial activity which is engaged in or is seeking to engage in a “Competitive Business.” As used in this
Agreement, “Competitive Business” shall mean any individual or enterprise engaged in (x) cleansing of body cavities,
tubular structures or other orafices or devices added on or attached to endoscopes or (y) any other business competitive with
the business of the Company on the date of termination.

 

(B)
Executive further agrees that, during the Restricted Period, Executive shall not, directly or indirectly, either on Executive’s
own behalf or on behalf of any other individual or commercial enterprise: (i) contact, communicate, solicit or transact any business
with or assist any third party in contacting, communicating, soliciting or transacting any business with (A) any of the customers
or clients of the Company, (B) any prospective customers or clients of the Company, or (C) any individual or entity who or which
was within the most recent twelve (12) month period a customer or client of Company, for the purpose of inducing such customer
or client or potential customer or client to be connected to or benefit from any competitive business or to terminate its or their
business relationship with the Company; (ii) solicit, induce or assist any third party in soliciting or inducing any individual
or entity who is then (or was at any time within the preceding twelve (12) an employee, consultant, independent contractor or
agent of Company) to leave the employment of the Company or cease performing services for the Company; (iii) hire or engage or
assist any third party in hiring or engaging, any individual or entity that is or was (at any time within the preceding twelve
(12) months) an employee, consultant, independent contractor or agent of the Company, or (iv) solicit, induce or assist any third
party in soliciting or inducing any other person or entity (including, without limitation, any third-party service provider or
distributor) to terminate its relationship with the Company or otherwise interfere with such relationship. A “prospective
customer or client” is any individual or entity with respect to whom or which Company was engaged in a solicitation at any
time during the twelve (12) months preceding his termination of Executive’s employment with Company and in which solicitation
Executive was in any way involved, or about whom or which Executive had access to Confidential Information.

 

    	 	-7-	 

     

    

 

5.04
Non-Disparagement. Executive will not at any time (during or after Executive’s employment with Company) disparage
the reputation of Company, its clients and customers and its or their respective officers, directors, agents or employees. Company
will not at any time, (during or after Executive’s employment with Company) disparage the reputation of Executive. In the
event that Company is asked to verify Executive’s employment with Company, Company will confirm only the dates of employment
and position unless expressly authorized to provide additional information by Executive.

 

5.05
Cooperation With Investigations/Litigation. Executive agrees, upon Company’s request, to reasonably cooperate both
during and after Executive’s employment with Company in any Company investigation, litigation, arbitration, or regulatory
proceeding regarding events that occurred during Executive’s tenure with Company. Executive will make himself reasonably
available to consult with Company’s counsel, to provide information, and to appear to give testimony. Company will reimburse
Executive for reasonable out-of-pocket expenses Executive incurs in extending such cooperation, so long as Executive provides
advance written notice of Executive’s request for reimbursement and provides satisfactory documentation of the expenses.

 

5.06
Reasonable Restrictions/Damages Inadequate Remedy. The Parties to this agreement acknowledge that the restrictions contained
in this Article are reasonable and necessary to protect the legitimate business interests of Company and that any breach by Executive
of any provision contained in this Article V or Article VI may result in immediate irreparable injury to Company for which a remedy
at law would be inadequate. Accordingly, the Parties shall be entitled to temporary or permanent injunctive or other equitable
relief (without being obligated to post a bond or other collateral) in the event of any breach or threatened breach of the provisions
of Articles V or VI, in addition to any other remedy that may be available whether at law or in equity.

 

5.07
Separate Covenants. In the event that any court of competent jurisdiction shall determine that any one or more of the provisions
contained in this Article shall be unenforceable in any respect, then such provision
shall be deemed limited and restricted to the extent that the court shall deem the provision to be enforceable. It is the intention
of the parties to this Agreement that the covenants and restrictions in this Article be given the broadest interpretation permitted
by law. The invalidity or unenforceability of any provision of this Article shall not affect the validity or enforceability of
any other provision hereof. If, in any judicial or arbitration proceedings, a court of competent jurisdiction or arbitration panel
should refuse to enforce all of the separate covenants and restrictions in this Article, then such unenforceable covenants and
restrictions shall be eliminated from the provisions of this Agreement for the purpose of such proceeding to the extent necessary
to permit the remaining separate covenants and restrictions to be enforced in such proceeding.

 

    	 	-8-	 

     

    

 

ARTICLE
VI

 

OWNERSHIP
OF PROPRIETARY RIGHTS

 

6.01
Proprietary Rights. For the purposes of this Agreement, “Proprietary Rights” shall mean all right, title and
interest (including any copyrights, patent rights, trademarks, servicemarks and trade names) in and to, or associated with, or
arising from, any and all notes, data, reference materials, sketches, drawings, memoranda, documentation, and any and all work
product conceived, created, reduced to any medium of expression and/or produced as part of the activities of Executive for the
Company, including all written, graphical, pictorial, visual, audio, and audiovisual elements relating thereto, software code
or records in any way incorporating or reflecting any Confidential Information and any original works of authorship, derivative
works, inventions, developments, concepts, know-how, improvements, trade secrets or ideas, whether or not fixed in a tangible
medium of expression, that are conceived or developed in whole or in part by the Executive alone or in conjunction with others,
whether or not conceived or developed during regular working hours by, or in association with, the Company that are made through
the use of any Confidential Information or any of the Company’s equipment, facilities, supplies, or trade secrets, or that
relate to the Company’s business or the Company’s actual or demonstrably anticipated research and development, or
that result from any work performed by the Executive for the Company.

 

6.02
Ownership of Proprietary Rights. The Executive covenants and agrees with the Company that all Proprietary Rights shall
belong exclusively to the Company, and the Executive agrees to assign and hereby assigns to the Company, all rights, title and
interest throughout the world in and to all Proprietary Rights. The Executive agrees to promptly make full written disclosure
to the Company, and will hold in trust for the sole right and benefit of the Company, all Proprietary Rights. The Executive agrees
that, upon request of the Company and without any separate remuneration or compensation, the Executive shall take such action
and execute and deliver such documents and instruments as may be necessary or proper to vest in the Company all right, title and
interest in and to all such Proprietary Rights. Without limiting the foregoing, the Executive further agrees that for any original
works of authorship created by the Executive, the Company shall be deemed the author thereof under the United States Copyright
Act; provided, however, that in the event and to the extent such works do not to constitute “works made for
hire” as a matter of law, the Executive agrees to irrevocably assign and transfer, and hereby irrevocably assigns and transfers
to the Company, all right, title and interest in and to such works, including but not limited to copyrights.

 

    	 	-9-	 

     

    

 

6.03
Maintenance of Records. The Executive covenants and agrees to take commercially reasonable measures to keep and maintain
adequate and current written records of all inventions and works of authorship made by the Executive (solely or jointly with others)
during the term of the Executive’s relationship with the Company. The records may be in the form of notes, sketches, drawings,
flow charts, electronic data or recordings, laboratory notebooks, and any other format. The records will be available to and remain
the sole property of the Company at all times. The Executive agrees not to remove such records from the Company’s place
of business except as expressly permitted by the Company policy, which may, from time to time, be revised at the sole election
of the Company. The Executive agrees to return all such records (including any copies thereof) to the Company at the time of termination
of services with the Company.

 

6.04
Recordation of Rights. The Executive covenants and agrees to assist the Company, or its designee, at the Company’s
expense, in every proper way to secure the Company’s, or its designee’s, rights in the inventions and any copyrights,
patents, trademarks, servicemarks, moral rights, or other intellectual property rights relating thereto in any and all countries,
including the disclosure to the Company or its designee of all pertinent information and data with respect thereto, the execution
of all applications, specifications, oaths, assignments, recordations, and all other instruments that the Company or its designee
shall deem necessary in order to apply for, obtain, maintain and transfer such rights, or if not transferable, waive such rights,
and in order to assign and convey to the Company or its designee and any successors, assigns and nominees the sole and exclusive
rights, title and interest in and to such inventions, and any copyrights, patents or other intellectual property rights relating
thereto. The Executive further agrees that the obligation to execute or cause to be executed, when it is in the Executive’s
power to do so, any such instrument or papers shall continue after the termination of this Agreement until the expiration of the
last such intellectual property right to expire in any country of the world. If the Company or its designee is unable because
of the Executive’s mental or physical incapacity or unavailability or for any other reason to secure the Executive’s
signature to apply for or to pursue any application for any United States or foreign patents, copyrights, or other registrations
covering inventions or works of authorship assigned or to be assigned to the Company or its designee as above, then the Executive
hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as the Executive’s agent
and attorney-in-fact, to act for and on the Executive’s behalf and stead to execute and file any such applications and to
do all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance or transfer of letters
patent, copyright or other registrations thereon with the same legal force and effect as if originally executed by the Executive.
The Executive hereby waives and irrevocably quitclaims to the Company or its designee any and all claims, of any nature whatsoever,
that the Executive now or hereafter has for infringement of any and all proprietary rights assigned to the Company or such designee.

 

    	 	-10-	 

     

    

 

ARTICLE
VII

 

Nonassignability;
Binding Agreement

 

7.01
By the Executive. This Agreement and any and all rights, duties, obligations or interests hereunder shall not be assignable
or delegable by the Executive.

 

7.02
By the Company. This Agreement and all of the Company’s rights and obligations hereunder shall not be assignable
by the Company except to an affiliate of the Company or as incident to a reorganization, merger or consolidation, or transfer
of all or substantially all of the Company’s assets.

 

7.03
Binding Effect. This Agreement shall be binding upon, and inure to the benefit of, the parties hereto, any successors to
or assigns of the Company and the Executive’s heirs and the personal representatives of the Executive’s estate.

 

ARTICLE
VIII

Withholding

 

Any
payments made or benefits provided to the Executive under this Agreement shall be reduced by any applicable withholding taxes
or other amounts required to be withheld by law or contract.

 

ARTICLE
IX

Section
409A

 

9.01
The payments and benefits provided under this Agreement are intended to comply with, or be exempt from, Section 409A of the Code
and shall be interpreted or construed consistent with that intent. The Company shall not accelerate any payment or the provision
of any benefits under this Agreement or make or provide any such payment or benefits if such payment or provision of such benefits
would, as a result, be subject to tax under Section 409A. If, in the good faith judgment of the Company, any provision of this
Agreement could cause the Executive to be subject to adverse or unintended tax consequences under Section 409A, such provision
shall be modified by the Company in its sole discretion to maintain, to the maximum extent practicable, the original intent of
the applicable provision without contravening the requirements of Section 409A of the Code. This Section 9.01 does not
create an obligation on the part of the Company to modify this Agreement and does not guarantee that the amounts or benefits owed
under this Agreement will not be subject to interest and penalties under Section 409A.

 

9.02
To the extent any reimbursements or in-kind benefit payments under this Agreement are subject to Section 409A of the Code, such
reimbursements and in-kind benefit payments shall be made in accordance with Treasury Regulation § 1.409A-3(i)(l)(iv) (or
any similar or successor provisions), and payments of such reimbursements or in-kind benefits shall be made on or before the last
day of the calendar year following the calendar year in which the relevant expense is incurred. The amount of expenses eligible
for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year.

 

    	 	-11-	 

     

    

 

ARTICLE
X

Indemnification

 

The
Company indemnifies Executive to the maximum extent provided in the Company’s By-Laws and organizational documents, as currently
in effect. Executive shall be entitled to coverage under the directors and officers liability insurance on terms no less favorable
to him in any respect than the coverage then being provided to any other current or former director or officer of the Company
and which the Company shall maintain with minimum coverage of $1 million.

 

ARTICLE
XI

Amendment;
Waiver

 

This
Agreement may not be modified, amended or waived in any manner, except by an instrument in writing signed by both parties hereto.
The waiver by either party of compliance with any provision of this Agreement by the other party shall not operate or be construed
as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement.

 

ARTICLE
XII

Governing
Law

 

All
matters affecting this Agreement, including the validity thereof, are to be governed by, and interpreted and construed in accordance
with, the laws of the State of New York without giving effect to the principles of conflicts of law.

 

ARTICLE
XIII

Arbitration

 

With
the exception of the Company’s right to seek injunctive relief in a court of competent jurisdiction to enforce Articles
V and VI, any dispute or controversy arising out of or relating to this Agreement or Executive’s performance thereunder
shall be exclusively settled by arbitration before a single arbitrator to be held in New York County, New York, in accordance
with the rules then in effect of the American Arbitration Association. The decision of the arbitrator shall be final, conclusive
and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having
jurisdiction. The Company and the Executive shall separately pay their own counsel fees and expenses. The arbitrator shall apply
the laws of the State of New York with respect to interpretation, construction or enforcement of this Agreement without giving
effect to the principles of conflicts of law.

 

ARTICLE
XIV

Survival
of Certain Provisions

 

The
rights and obligations set forth Articles V and VI shall survive any termination or expiration of this Agreement.

 

    	 	-12-	 

     

    

 

ARTICLE
XV

Entire
Agreement; Supersedes Previous Agreements

 

This
Agreement, including the Confidentiality and Proprietary Information Agreement attached to this Agreement as Exhibit A, contains
the entire agreement and understanding of the parties hereto with respect to the matters covered herein and supersedes all prior
or contemporaneous negotiations, commitments, agreements and writings with respect to the subject matter hereof. All such other
negotiations, commitments, agreements and writings shall have no further force or effect, and the parties to any such other negotiation,
commitment, agreement or writing shall have no further rights or obligations thereunder.

 

ARTICLE
XVI

Counterparts

 

This
Agreement may be executed by either of the parties hereto in counterparts, via electronic or facsimile signature, each of which
shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument.

 

ARTICLE
XVII

Headings

 

The
headings of sections herein are included solely for convenience of reference and shall not control the meaning or interpretation
of any of the provisions of this Agreement.

 

ARTICLE
XVIII

Notices

 

All
notices or communications hereunder shall be in writing and shall be deemed to have been duly given if delivered personally or
sent by telefax, by recognized overnight courier marked for overnight delivery, or by registered or certified mail, postage prepaid,
addressed as follows:

 

If
to the Company:

 

Motus
GI Holdings, Inc.

150
Union Square,

New
Hope, PA 18938

With
a copy (which shall not constitute notice) to:

 

Steven
Skolnick, Esq.

Lowenstein
Sandler LLP

1251
Avenue of the Americas

New
York, New York

 

    	 	-13-	 

     

    

 

Or
at such other address at which the Company may from time to time maintain its principal executive offices.

 

If
to the Executive:

 

Mark
Pomeranz

20
Laurelwood Drive

Bernardsville,
NJ 07924

Telephone:
908-745-8599

 

With
a copy (which shall not constitute notice) to:

 

Edward
H. Pomeranz, Esq.

Graubard
Miller

405
Lexington Avenue

New
York, NY 10174, USA

Telephone:
212-818-8800

Facsimile:
212-818-8881

 

Or
such other addresses as shall be furnished by like notice by the Executive.

 

    	 	-14-	 

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Agreement to be signed by its officer, and the Executive has executed this Agreement,
as of the day and year first written above.

 

	 	MOTUS
    GI HOLDINGS, INC.
	 	 	 
	 	By:	/s/
    James Martin
	 	Name:	James
    Martin
	 	Title:	Chief
    Financial Officer
	 	 	 
	 	THE EXECUTIVE
	 	 	 
	 	/s/ Mark Pomeranz
	 	Mark Pomeranz

 

    	 	-15-

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