Document:

EXHIBIT 4.3

 

 

WARRANT AGREEMENT

 

NanoVibronix, Inc.

 

and

 

VStock Transfer, LLC., as Warrant Agent

 

WARRANT AGREEMENT

 

THIS WARRANT AGREEMENT (this “Agreement”),
dated as of ____________, 2014, is by and between NanoVibronix, Inc., a Delaware corporation (the “Company”),
and VStock Transfer, LLC, a _______________________, as Warrant Agent (the “Warrant Agent”).

 

WHEREAS, the Company is engaged in an initial
public offering (the “Offering”) of units consisting of common stock of the Company, par value $0.001
per share (“Common Stock”) and warrants to purchase shares of Common Stock of the Company (“Warrants”)
and, in connection therewith, has determined to issue and deliver up to ____________ Warrants to public investors in the Offering,
each such Warrant evidencing the right of the holder thereof to purchase one share of Common Stock of the Company for $_____ per
share, subject to adjustment as described herein; and

 

WHEREAS, the Company has filed with the
Securities and Exchange Commission (the “Commission”) a registration statement on Form S-1, No. 333-193784
(the “Registration Statement”) and prospectus (the “Prospectus”), for the registration,
under the Securities Act of 1933, as amended (the “Securities Act”), of the shares of Common Stock
to be sold in the Offering, the Warrants to be sold in the Offering and the shares of Common Stock underlying the Warrants; and

 

WHEREAS, the Company desires the Warrant
Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance, registration,
transfer, exchange, redemption and exercise of the Warrants; and

 

WHEREAS, the Company desires to provide
for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised, and the respective rights,
limitation of rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants; and

 

WHEREAS, all acts and things have been done
and performed which are necessary to make the Warrants, when executed on behalf of the Company and countersigned by or on behalf
of the Warrant Agent, as provided herein, the valid, binding and legal obligations of the Company, and to authorize the execution
and delivery of this Agreement.

 

NOW, THEREFORE, in consideration of the
mutual agreements herein contained, the parties hereto agree as follows:

 

		1.	Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the
Warrants, and the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and
conditions set forth in this Agreement.

 

		2.	Warrants.

 

		2.1	Form of Warrant. Each Warrant shall be issued in registered form only and shall be in substantially the form of Exhibit A
hereto, the provisions of which are incorporated herein. Each Warrant shall be signed by, or bear the facsimile signature of, the
Chairman of the Board, President, Chief Executive Officer, Secretary or other principal officer of the Company. In the event the
person whose facsimile signature has been placed upon any Warrant shall have ceased to serve in the capacity in which such person
signed the Warrant before such Warrant is issued, it may be issued with the same effect as if he or she had not ceased to be such
at the date of issuance.

 

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		2.2	Effect of Countersignature. Unless and until countersigned by the Warrant Agent pursuant to this Agreement, a Warrant
shall be invalid and of no effect and may not be exercised by the holder thereof.

 

		2.3	Registration.

 

		2.3.1	Warrant Register. The Warrant Agent shall maintain books (the “Warrant Register”), for the
registration of original issuance and the registration of transfer of the Warrants. Upon the initial issuance of the Warrants,
the Warrant Agent shall issue and register the Warrants in the names of the respective holders thereof in such denominations and
otherwise in accordance with instructions delivered to the Warrant Agent by the Company.

 

		2.3.2	Registered Holder. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant
Agent may deem and treat the person in whose name such Warrant is registered in the Warrant Register (the “Registered
Holder”) as the absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation
of ownership or other writing on the Warrant Certificate (as defined below) made by anyone other than the Company or the Warrant
Agent), for the purpose of any exercise thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall
be affected by any notice to the contrary.

 

		3.	Terms and Exercise of Warrants.

 

		3.1	Warrant Price. Each Warrant shall, when countersigned by the Warrant Agent, entitle the Registered Holder thereof, subject
to the provisions of such Warrant and of this Warrant Agreement, to purchase from the Company the number of Shares of Common Stock
stated therein, at the price of $___ per share, subject to the adjustments provided in  Section 4 hereof and in
the last sentence of this  Section 3.1 . The term “Warrant Price” as used in this Warrant
Agreement shall mean the price per share at which Shares of Common Stock may be purchased at the time a Warrant is exercised.

 

		3.2	Duration of Warrants. A Warrant may be exercised only during the period (the “Exercise Period”)
commencing on the date of issuance thereof and ending on the earlier of: (a) _________, 2019; (b) the trading day preceding the
date on which such Warrants are redeemed pursuant to Section 3.4 below, or (c) upon the dissolution and winding up of the Company
(the “Expiration Date”); provided, however, that the exercise of any Warrant shall be subject
to the satisfaction of any applicable conditions, as set forth in subsection 3.3.2 below with respect to an effective registration
statement. Each Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights
in respect thereof under this Agreement shall cease at 5:00 p.m. New York City time on the Expiration Date.

 

		3.3	Exercise of Warrants.

 

		3.3.1	Payment. Subject to the provisions of the Warrant and this Warrant Agreement, a Warrant, when countersigned by the Warrant
Agent, may be exercised by the Registered Holder thereof by surrendering it, at the office of the Warrant Agent in Nassau County,
Village of Woodmere and State of New York, or at the office of its successor as Warrant Agent, in the Borough of Manhattan , City
and State of New York, with the subscription form, as set forth in the Warrant, duly executed, and by paying in full the Warrant
Price for each full share of Common Stock as to which the Warrant is exercised and any and all applicable taxes due in connection
with the exercise of the Warrant, the exchange of the Warrant for the Shares of Common Stock and the issuance of such Shares of
Common Stock, in lawful money of the United States, in good certified check or good bank draft payable to the order of the Company.

 

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		3.3.2	Issuance of Common Stock on Exercise. As soon as practicable after the exercise of any Warrant and the clearance of
the funds in payment of the Warrant Price, the Company shall issue to the Registered Holder of such Warrant a certificate or certificates
for the number of full Shares of Common Stock to which he, she or it is entitled, registered in such name or names as may be directed
by him, her or it, and if such Warrant shall not have been exercised in full, a new countersigned Warrant for the number of shares
as to which such Warrant shall not have been exercised. Notwithstanding the foregoing, the Company shall not be obligated to deliver
any shares of Common Stock pursuant to the exercise of a Warrant and shall have no obligation to settle such Warrant exercise unless
a registration statement under the Securities Act with respect to the Common Stock underlying the Warrants is then effective and
a prospectus relating thereto is current, [subject to the Company’s satisfying its obligations under  Section 6.4.]
No Warrant shall be exercisable and the Company shall not be obligated to issue shares of Common Stock upon exercise of a Warrant
unless the shares of Common Stock issuable upon such Warrant exercise have been registered, qualified or deemed to be exempt under
the securities laws of the state of residence of the Registered Holder of the Warrant. In the event that the conditions in the
two immediately preceding sentences are not satisfied with respect to a Warrant, the holder of such Warrant shall not be entitled
to exercise such Warrant and such Warrant may have no value and expire worthless. In no event shall the Company be required to
net cash settle any Warrant.

 

		3.3.3	Valid Issuance. All Common Stock issued or issuable upon the proper exercise of a Warrant in conformity with this Agreement
shall be validly issued, fully paid and nonassessable.

 

		3.3.4	Date of Issuance. Each person in whose name any certificate for the Common Stock is issued shall for all purposes be
deemed to have become the holder of record of such Common Stock on the date on which the Warrant was surrendered and payment of
the Warrant Price was made, irrespective of the date of delivery of such certificate, except that, if the date of such surrender
and payment is a date when the share transfer books of the Company are closed, such person shall be deemed to have become the holder
of such shares at the close of business on the next succeeding date on which the share transfer books are open.

 

		3.4	Redemption of Warrants.

 

		3.4.1	The Company may call the Warrants for redemption at a price of $0.01 per Warrant, upon not less than 30 days’ prior written
notice of redemption to each Warrant holder, at any time after such Warrants have become exercisable pursuant to Section 3.2, if,
and only if, (i) the Closing Price (defined below) has equaled or exceeded $[_____] per share for any 10 trading days within a
30-trading-day period ending on the third trading day prior to the notice of redemption to Warrant holders,  (ii) at all times
between the date of such notice of redemption and the redemption date a registration statement is in effect and a current prospectus
is available covering the shares of Common Stock issuable upon exercise of the Warrants and (iii) at all times between the date of such notice of redemption and the redemption date the shares
of Common Stock issuable upon such Warrant exercise have been registered, qualified or deemed to be exempt under the securities
laws of the state of residence of the Registered Holder of the Warrant.

 

		3.4.2	The “Closing Price” of the Common Stock on any date of determination means:

 

(a)    the
closing sale price for the regular trading session (without considering after hours or other trading outside regular trading session
hours) of the Common Stock (regular way) as reported in the composite transactions for the principal United States securities exchange
on which the Common Stock is so listed on that date (or, if no closing price is reported, the last reported sale price during that
regular trading session), or

 

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(b)    if
the Common Stock is not so listed, the last quoted sales price for the Common Stock in the over-the-counter market as reported
by the OTC Bulletin Board, the National Quotation Bureau or similar organization, or

 

(c)    if
the Common Stock is not so quoted, the average of the mid-point of the last bid and ask prices for the Common Stock from at least
three nationally recognized investment-banking firms that the Company selects for this purpose.

 

		4.	Adjustments.

 

		4.1	Stock Dividends.

 

		4.1.1	Split-Ups. If after the date hereof, and subject to the provisions of Section 4.6 below, the number of outstanding
shares of Common Stock is increased by a stock dividend payable in Common Stock, or by a split-up of Common Stock or other similar
event, then, on the effective date of such stock dividend, split-up or similar event, the number of shares of Common Stock issuable
on exercise of each Warrant shall be increased in proportion to such increase in the outstanding shares of Common Stock.

 

		4.1.2	Dividends. If the Company, at any time while the Warrants are outstanding and unexpired, shall pay a dividend or make
a distribution in cash, securities or other assets to the holders of shares of Common Stock on account of such Common Stock (or
other shares of the Company’s capital stock into which the Warrants are convertible), other than  as described in  subsection
4.1.1 above (any such non- excluded event being referred to herein as a “Dividend”), then the Warrant
Price shall be decreased, effective immediately after the effective date of such Dividend, by the amount of cash and/or the fair
market value (as determined by the Board, in good faith) of any securities or other assets paid on each share of Common Stock in
respect of such Dividend.

 

		4.2	Aggregation of Shares. If after the date hereof, and subject to the provisions of Section 4.6 hereof, the number
of outstanding shares of Common Stock is decreased by a consolidation, combination, reverse stock split or reclassification of
Common Stock or other similar event, then, on the effective date of such consolidation, combination, reverse stock split, reclassification
or similar event, the number of shares of Common Stock issuable on exercise of each Warrant shall be decreased in proportion to
such decrease in outstanding shares of Common Stock.

 

		4.3	Adjustments in Exercise Price. Whenever the number of shares of Common Stock purchasable upon the exercise of the Warrants
is adjusted, as provided in  subsection 4.1.1 or 4.2 above, the Warrant Price shall be adjusted (to the nearest cent)
by multiplying such Warrant Price immediately prior to such adjustment by a fraction (x) the numerator of which shall be the
number of shares of Common Stock purchasable upon the exercise of the Warrants immediately prior to such adjustment, and (y) the
denominator of which shall be the number of shares of Common Stock so purchasable immediately thereafter.

 

		4.4	Replacement of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding
shares of Common Stock (other than a change under  subsections 4.1.1 or 4.1.2 or Section 4.2 hereof or that solely
affects the par value of such shares of Common Stock), or in the case of any merger or consolidation of the Company with or into
another corporation (other than a consolidation or merger in which the Company is the continuing corporation and that does not
result in any reclassification or reorganization of the outstanding shares of the Common Stock), or in the case of any sale or
conveyance to another corporation or entity of the assets or other property of the Company as an entirety or substantially as an
entirety in connection with which the Company is dissolved, the holders of the Warrants shall thereafter have the right to purchase
and receive, upon the basis and upon the terms and conditions specified in the Warrants and in lieu of the shares of the Common
Stock of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the
kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization,
merger or consolidation, or upon a dissolution following any such sale or transfer, that the holder of the Warrants would have
received if such holder had exercised his, her or its Warrant(s) immediately prior to such event. If any reclassification or reorganization
also results in a change in the Common Stock covered by subsection 4.1.1, then such adjustment shall be made pursuant to  subsection
4.1.1 or Sections 4.2,  4.3 and this Section 4.4. The provisions of this  Section 4.4 shall
similarly apply to successive reclassifications, reorganizations, mergers or consolidations, sales or other transfers.

 

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		4.5	Notices of Changes in Warrant. Upon every adjustment of the Warrant Price or the number of shares issuable upon exercise
of a Warrant, the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Warrant Price resulting
from such adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise
of a Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based.
Upon the occurrence of any event specified in  Sections 4.1, 4.2, 4.3 or 4.4, the Company shall give written notice
of the occurrence of such event to each holder of a Warrant, at the last address set forth for such holder in the Warrant Register,
of the record date or the effective date of the event. Failure to give such notice, or any defect therein, shall not affect the
legality or validity of such event.

 

		4.6	No Fractional Shares. Notwithstanding any provision contained in this Warrant Agreement to the contrary, the Company
shall not issue fractional shares upon exercise of Warrants. If, by reason of any adjustment made pursuant to this Section 4, the
holder of any Warrant would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a share, the Company
shall, upon such exercise, round to the nearest whole number, the number of the shares of Common Stock to be issued to such holder.

 

		4.7	Form of Warrant. The form of Warrant need not be changed because of any adjustment pursuant to this Section 4,
and Warrants issued after such adjustment may state the same Warrant Price and the same number of shares as is stated in the Warrants
initially issued pursuant to this Agreement;  provided,  however, that the Company may at any time in its sole
discretion make any change in the form of Warrant that the Company may deem appropriate and that does not affect the substance
thereof, and any Warrant thereafter issued or countersigned, whether in exchange or substitution for an outstanding Warrant or
otherwise, may be in the form as so changed.

 

		4.8	Other Events. In case any event shall occur affecting the Company as to which none of the provisions of preceding subsections
of this Section 4 are strictly applicable, but which would require an adjustment to the terms of the Warrants in order
to (i) avoid an adverse impact on the Warrants and (ii) effectuate the intent and purpose of this Section 4, then,
in each such case, the Company shall appoint a firm of independent public accountants, investment banking or other appraisal firm
of recognized national standing, which shall give its opinion as to whether or not any adjustment to the rights represented by
the Warrants is necessary to effectuate the intent and purpose of this  Section 4 and, if they determine that an
adjustment is necessary, the terms of such adjustment. The Company shall adjust the terms of the Warrants in a manner that is consistent
with any adjustment recommended in such opinion.

 

		5.	Transfer and Exchange of Warrants.

 

		5.1	Registration of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant
upon the Warrant Register, upon surrender of such Warrant for transfer, properly endorsed with signatures properly guaranteed and
accompanied by appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate number
of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent. The Warrants so cancelled shall be delivered
by the Warrant Agent to the Company from time to time upon request.

 

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		5.2	Procedure for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together with a written request
for exchange or transfer, and thereupon the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested
by the Registered Holder of the Warrants so surrendered, representing an equal aggregate number of Warrants.  

 

		5.3	Fractional Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which
shall result in the issuance of a warrant certificate for a fraction of a warrant.

 

		5.4	Warrant Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance
with the terms of this Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5.

 

		6.	Other Provisions Relating to Rights of Holders of Warrants.

 

		6.1	No Rights as Stockholder. A Warrant does not entitle the Registered Holder thereof to any of the rights of a stockholder
of the Company, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive
rights to vote or to consent or to receive notice as stockholders in respect of the meetings of stockholders or the election of
directors of the Company or any other matter.

 

		6.2	Lost, Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen, mutilated, or destroyed, the Company
and the Warrant Agent may on such terms as to indemnity bond or otherwise as they may in their discretion impose (which shall,
in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination, tenor, and date as
the Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant shall constitute a substitute contractual obligation
of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time enforceable by
anyone.

 

		6.3	Reservation of Common Stock. The Company shall at all times reserve and keep available a number of its authorized but
unissued shares of Common Stock that shall be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant
to this Agreement.

 

		6.4	Registration of Common Stock.   The Company registered the shares of Common Stock and Warrants underlying
the Warrants in the Registration Statement. The Company will use its reasonable best efforts to maintain the effectiveness of such
Registration Statement and the current status of the Prospectus or to file and maintain the effectiveness of another registration
and another current prospectus covering the shares of Common Stock issuable upon exercise of the Warrants at any time that the
Warrants are exercisable. In addition, the Company agrees to use its reasonable best efforts to register such shares of Common
Stock under the blue sky laws of the states of residence of the exercising Warrant holders to the extent an exemption from such
registration is not available.

 

		7.	Concerning the Warrant Agent and Other Matters.

 

		7.1	Payment of Taxes. The Company shall from time to time promptly pay all taxes and charges that may be imposed upon the
Company or the Warrant Agent in respect of the issuance or delivery of shares of Common Stock upon the exercise of the Warrants,
but the Company shall not be obligated to pay any transfer taxes in respect of the Warrants or such shares.

 

		7.2	Resignation, Consolidation, or Merger of Warrant Agent.

 

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		7.2.1	Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its
duties and be discharged from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing
to the Company. If the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company
shall appoint in writing a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment
within a period of thirty (30) days after it has been notified in writing of such resignation or incapacity by the Warrant
Agent or by the holder of a Warrant (who shall, with such notice, submit his Warrant for inspection by the Company), then the holder
of any Warrant may apply to the Supreme Court of the State of New York for the County of New York for the appointment of a successor
Warrant Agent at the Company’s cost. Any successor Warrant Agent, whether appointed by the Company or by such court, shall
be a corporation organized and existing under the laws of the State of New York, in good standing and having its principal office
in the Borough of Manhattan, City and State of New York, and authorized under such laws to exercise corporate trust powers and
subject to supervision or examination by federal or state authority. After appointment, any successor Warrant Agent shall be vested
with all the authority, powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent with like effect as
if originally named as Warrant Agent hereunder, without any further act or deed; but if for any reason it becomes necessary or
appropriate, the predecessor Warrant Agent shall execute and deliver, at the expense of the Company, an instrument transferring
to such successor Warrant Agent all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon request
of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for
more fully and effectually vesting in and confirming to such successor Warrant Agent all such authority, powers, rights, immunities,
duties, and obligations.

 

		7.2.2	Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give
notice thereof to the predecessor Warrant Agent and the Transfer Agent for the Common Stock not later than the effective date of
any such appointment.

 

		7.2.3	Merger or Consolidation of Warrant Agent. Any company into which the Warrant Agent may be merged or with which it may
be consolidated or any corporation resulting from any merger or consolidation to which the Warrant Agent shall be a party shall
be the successor Warrant Agent under this Agreement without any further act.

 

		7.3	Fees and Expenses of Warrant Agent.

 

		7.3.1	Remuneration. The Company agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant Agent
hereunder and shall, pursuant to its obligations under this Agreement, reimburse the Warrant Agent upon demand for all expenditures
that the Warrant Agent may reasonably incur in the execution of its duties hereunder.

 

		7.3.2	Further Assurances. The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed,
acknowledged, and delivered all such further and other acts, instruments, and assurances as may reasonably be required by the Warrant
Agent for the carrying out or performing of the provisions of this Agreement.

 

		7.4	Liability of Warrant Agent.

 

		7.4.1	Reliance on Company Statement. Whenever in the performance of its duties under this Warrant Agreement, the Warrant Agent
shall deem it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering
any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed
to be conclusively proved and established by a statement signed by the President or Chairman of the Board of the Company and delivered
to the Warrant Agent. The Warrant Agent may rely upon such statement for any action taken or suffered in good faith by it pursuant
to the provisions of this Agreement.

 

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		7.4.2	Indemnity. The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct or bad
faith. The Company agrees to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments,
costs and reasonable counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Agreement, except
as a result of the Warrant Agent’s gross negligence, willful misconduct or bad faith.

 

		7.4.3	Exclusions. The Warrant Agent shall have no responsibility with respect to the validity of this Agreement or with respect
to the validity or execution of any Warrant (except its countersignature thereof). The Warrant Agent shall not be responsible for
any breach by the Company of any covenant or condition contained in this Agreement or in any Warrant. The Warrant Agent shall not
be responsible to make any adjustments required under the provisions of  Section 4 hereof or responsible for
the manner, method, or amount of any such adjustment or the ascertaining of the existence of facts that would require any such
adjustment; nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation
of any shares of Common Stock to be issued pursuant to this Agreement or any Warrant or as to whether any shares of Common Stock
shall, when issued, be valid and fully paid and nonassessable.

 

		7.5	Acceptance of Agency. The Warrant Agent hereby accepts the agency established by this Agreement and agrees to perform
the same upon the terms and conditions herein set forth and among other things, shall account promptly to the Company with respect
to Warrants exercised and concurrently account for, and pay to the Company, all monies received by the Warrant Agent for the purchase
of shares of Common Stock through the exercise of the Warrants.

 

		8.	Miscellaneous Provisions.

 

		8.1	Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent
shall bind and inure to the benefit of their respective successors and assigns.

 

		8.2	Notices. Any notice, statement or demand authorized by this Warrant Agreement to be given or made by the Warrant Agent
or by the holder of any Warrant to or on the Company shall be sufficiently given when so delivered if by hand or overnight delivery
or if sent by certified mail or private courier service within five (5) days after deposit of such notice, postage prepaid,
addressed (until another address is filed in writing by the Company with the Warrant Agent), as follows:

 

NanoVibronix, Inc.

105 Maxess Road

Suite S124

Melville, NY 11747

 

Any notice, statement or demand authorized by this Agreement
to be given or made by the holder of any Warrant or by the Company to or on the Warrant Agent shall be sufficiently given when
so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five (5) days
after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Warrant Agent with the
Company), as follows:

 

VStock Transfer, LLC

18 Lafayette Place

Woodmere, NY 11598

 

 

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		8.3	Applicable Law. The validity, interpretation, and performance of this Agreement and of the Warrants shall be governed
in all respects by the laws of the State of New York, without giving effect to conflicts of law principles that would result in
the application of the substantive laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim
against it arising out of or relating in any way to this Agreement shall be brought and enforced in the courts of the State of
New York or the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts
represent an inconvenient forum.

 

		8.4	Persons Having Rights under this Agreement. Nothing in this Agreement shall be construed to confer upon, or give to,
any person or corporation other than the parties hereto and the Registered Holders of the Warrants any right, remedy, or claim
under or by reason of this Warrant Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. All covenants,
conditions, stipulations, promises, and agreements contained in this Warrant Agreement shall be for the sole and exclusive benefit
of the parties hereto and their successors and assigns and of the Registered Holders of the Warrants.

 

		8.5	Examination of the Warrant Agreement. A copy of this Agreement shall be available at all reasonable times at the office
of the Warrant Agent in Nassau County, Village of Woodmere and State of New York, for inspection by the Registered Holder of any
Warrant. The Warrant Agent may require any such holder to submit his Warrant for inspection by it.

 

		8.6	Counterparts. This Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

		8.7	Effect of Headings. The section headings herein are for convenience only and are not part of this Warrant Agreement
and shall not affect the interpretation thereof.

 

		8.8	Amendments. This Agreement may be amended by the parties hereto without the consent of any Registered Holder for
                                                                                                   the purpose of curing any ambiguity, or curing, correcting or supplementing any defective provision contained herein or
                                                                                                   adding or changing any other provisions with respect to matters or questions arising under this Agreement as the parties may
                                                                                                   deem necessary or desirable and that the parties deem shall not adversely affect the interest of the Registered Holders. All
                                                                                                   other modifications or amendments shall require the written consent of the Company and Registered Holders of 65% of the then
                                                                                                   outstanding Warrants.

 

		8.9	Severability. This Warrant Agreement shall be deemed severable, and the invalidity or unenforceability of any term or
provision hereof shall not affect the validity or enforceability of this Warrant Agreement or of any other term or provision hereof.
Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added
as a part of this Warrant Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible
and be valid and enforceable.

 

Exhibit A - Form of Warrant Certificate

 

    	9

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed as of the date first above written.

 

	NANOVIBRONIX, INC.	 
	 	 
	By:	 	 
	 	 
	VSTOCK TRANSFER, LLC, as Warrant Agent
	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

 

 

 

    	10

    	 

    

EXHIBIT A

 

	Number ___________	CUSIP__________

 

FORM OF WARRANT CERTIFICATE

 

THIS WARRANT SHALL BE VOID IF NOT EXERCISED
PRIOR TO

THE EXPIRATION OF THE EXERCISE PERIOD PROVIDED FOR

IN THE WARRANT AGREEMENT DESCRIBED BELOW

NANOVIBRONIX, INC.

Incorporated Under the Laws of the State of Delaware

 

Warrant Certificate

 

This Warrant Certificate certifies
that                                       ,
or registered assigns, is the registered holder of                     
warrants (the “Warrants”) to purchase shares of Common Stock, $.001 par value (the “Common
Stock”), of NanoVibronix, Inc., a Delaware corporation (the “Company”). Each Warrant entitles
the holder, upon exercise during the period set forth in the Warrant Agreement referred to below, to receive from the Company that
number of fully paid and nonassessable shares of Common Stock (each, a “Warrant”) as set forth below,
at the exercise price (the “Exercise Price”) as determined pursuant to the Warrant Agreement, payable
in lawful money of the United States of America upon surrender of this Warrant Certificate at the office or agency of the Warrant
Agent referred to below, subject to the conditions set forth herein and in the Warrant Agreement. Defined terms used in this Warrant
Certificate but not defined herein shall have the meanings given to them in the Warrant Agreement.

 

Each Warrant is initially exercisable for
one fully paid and non-assessable share of Common Stock. The number of the Warrants issuable upon exercise of the Warrants is subject
to adjustment upon the occurrence of certain events set forth in the Warrant Agreement.

 

The initial Exercise Price per share of
Common Stock for any Warrant is equal to $____ per share. The Exercise Price is subject to adjustment upon the occurrence of certain
events set forth in the Warrant Agreement.

 

Subject to the conditions set forth in the
Warrant Agreement, the Warrants may be exercised only during the Exercise Period and to the extent not exercised by the end of
such Exercise Period, such Warrants shall become void.

 

The
Company reserves the right to redeem the Warrant, in whole and not in part, at any time prior to its exercise, with a notice
of redemption in writing to the holders of record of the Warrant, giving 30 days’ notice of such call at any time
after the Warrant becomes exercisable if (i) the last sale price of the Common Stock has been at least $[______] per share on
each of 10 trading days within any 30 trading day period ending on the third trading day prior to the date on
which notice of such redemption is given, (ii) at all times between the date of such notice of redemption and the redemption
date a registration statement is in effect covering the Common Stock issuable upon exercise of the Warrants and a current
prospectus relating to those shares of Common Stock is available and (iii) at all times between the date of such notice of
redemption and the redemption date the shares of Common Stock issuable upon such Warrant exercise have been registered,
qualified or deemed to be exempt under the securities laws of the state of residence of the Registered Holder of the Warrant. The
redemption price of the Warrants shall be $.01 per Warrant. Any Warrant either not exercised or tendered back to the Company
by the end of the date specified in the notice of redemption shall be cancelled on the books of the Company and have no
further value except for the $.01 redemption price.

 

Reference is hereby made to the further
provisions of this Warrant Certificate set forth on the reverse hereof and such further provisions shall for all purposes have
the same effect as though fully set forth at this place.

 

This Warrant Certificate shall not be valid
unless countersigned by the Warrant Agent, as such term is used in the Warrant Agreement.

 

    	 

    	 

    

 

This Warrant Certificate shall be governed
and construed in accordance with the internal laws of the State of New York, without regard to conflicts of laws principles thereof.

 

 

 

	 	NANOVIBRONIX, INC.
	 	 
	 	By: 	                 
	 	Name: Chief Executive Officer
	 	Title:
	 	 	 
	 	 	 
	 	By: 	 
	 	Name:
	 	Title: Secretary
	 	 	 

  

Countersigned:

Dated: ________, 20__

VStock Transfer, LLC,

as Warrant Agent

    	 

    	 

    

 

[REVERSE]

 

The Warrants evidenced by this Warrant Certificate
are part of a duly authorized issue of Warrants entitling the holder on exercise to receive shares of Common Stock and are issued
or to be issued pursuant to a Warrant Agreement dated as of                       ,
2014 (the “Warrant Agreement”), duly executed and delivered by VStock Transfer, LLC, a  ______________,
as warrant agent (the “Warrant Agent”), which Warrant Agreement is hereby incorporated by reference in
and made a part of this instrument and is hereby referred to for a description of the rights, limitation of rights, obligations,
duties and immunities thereunder of the Warrant Agent, the Company and the holders (the words “holders”
or “holder” meaning the Registered Holders or Registered Holder) of the Warrants. A copy of the Warrant
Agreement may be obtained by the holder hereof upon written request to the Company. Defined terms used in this Warrant Certificate
but not defined herein shall have the meanings given to them in the Warrant Agreement.

Warrants may be exercised at any time during
the Exercise Period as set forth in the Warrant Agreement. The holder of Warrants evidenced by this Warrant Certificate may exercise
them by surrendering this Warrant Certificate, with the form of election to purchase set forth hereon properly completed and executed,
together with payment of the Exercise Price, at the principal corporate trust office of the Warrant Agent. In the event that upon
any exercise of Warrants evidenced hereby the number of Warrants exercised shall be less than the total number of Warrants evidenced
hereby, there shall be issued to the holder hereof or his, her or its assignee, a new Warrant Certificate evidencing the number
of Warrants not exercised.

Notwithstanding anything else in this Warrant
Certificate or the Warrant Agreement, no Warrant may be exercised unless at the time of exercise (i) a registration statement
covering the shares of Common Stock to be issued upon exercise is effective under the Securities Act of 1933, (ii) a prospectus
thereunder relating to the shares of Common Stock is current and (iii) the shares of Common Stock issuable upon such exercise have been registered,
qualified or deemed to be exempt under the securities laws of the state of residence of the Registered Holder of the Warrant.

The Warrant Agreement provides that upon
the occurrence of certain events the number of the Warrants set forth on the face hereof may, subject to certain conditions, be
adjusted. If, upon exercise of a Warrant, the holder thereof would be entitled to receive a fractional interest in a share of Common
Stock, the Company shall, upon exercise, round to the nearest whole number of shares to be issued to the holder of the Warrant.

Warrant Certificates, when surrendered at
the principal corporate trust office of the Warrant Agent by the Registered Holder thereof in person or by legal representative
or attorney duly authorized in writing, may be exchanged, in the manner and subject to the limitations provided in the Warrant
Agreement, but without payment of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor evidencing
in the aggregate a like number of Warrants.

Upon due presentation for registration of
transfer of this Warrant Certificate at the office of the Warrant Agent a new Warrant Certificate or Warrant Certificates of like
tenor and evidencing in the aggregate a like number of Warrants shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided in the Warrant Agreement, without charge except for any tax or other governmental
charge imposed in connection therewith.

The Company and the Warrant Agent may deem
and treat the Registered Holder(s) thereof as the absolute owner(s) of this Warrant Certificate (notwithstanding any notation of
ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the holder(s)
hereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.
Neither the Warrants nor this Warrant Certificate entitles any holder hereof to any rights of a stockholder of the Company.

    	 

    	 

    

Election to Purchase

 

(To Be Executed Upon
Exercise of Warrant)

 

The undersigned hereby irrevocably elects
to exercise the right, represented by this Warrant Certificate, to receive                   
shares of Common Stock and herewith tenders payment for such shares to the order of NanoVibronix, Inc.. (the “ Company”)
in the amount of $                       
  in accordance with the terms hereof. The undersigned requests that a certificate for such shares be registered in the
name of                        ,
whose address is                       
  and that such shares be delivered to                  
       whose address is                
                     
                     
      . If said number of shares is less than all of the shares of Common Stock purchasable hereunder,
the undersigned requests that a new Warrant Certificate representing the remaining balance of such shares be registered in the
name of                        ,
whose address is                        
                   , and that such
Warrant Certificate be delivered to                       ,
whose address is                        .

 

	Date:                     , 20___	 	 
	 	 	(Signature)
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	(Address)
	 	 	 
	 	 	 
	 	 	(Tax Identification Number)

 

 

Signature Guaranteed:

 

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15).Exhibit 10.7

 

NANO VIBRONIX, INC.

 

FORM OF SUBSCRIPTION AGREEMENT

SERIES B CONVERTIBLE PREFERRED STOCK

AND WARRANTS

 

SUBSCRIPTION AGREEMENT
(the “Agreement”) dated as of March ___, 2009 between Nano Vibronix, Inc., a Delaware corporation (the “Company”),
and the persons who execute this agreement as investors (collectively, the “Investors”).

 

WITNESSETH:

 

WHEREAS, the Company
desires to sell to the Investors, and the Investors desire to purchase, an aggregate of _______ shares of Series B Convertible
Preferred Stock, par value $.001 per share, of the Company (the “Shares”) with warrants, in substantially the
form attached hereto as Exhibit 1, exercisable to purchase an aggregate of ____ Shares at $17.25 per share, subject to adjustment
(the “Warrants”), all for an aggregate price of US$______.

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein, the parties hereto hereby agree as follows:

 

1.           Purchase
and Sale of Securities.

 

1.1.       Sale
and Issuance of Securities. The Company shall sell to the Investors and the Investors shall purchase from the Company, an aggregate
of (x) _____ Shares (the “Purchased Shares”) and (y) Warrants to purchase an aggregate of _____ shares of Common
Stock (the “Purchased Warrants” and, collectively with the Purchased Shares, the “Securities”),
for an aggregate purchase price of US$______.

 

1.2.       The
closing (the “Closing”) of the purchase and sale of the Securities hereunder shall take place within three
(3) business days of the date of this Agreement or such other date agreed to by the Company and the Investors (the “Closing
Date”). The Closing shall take place remotely by means of and concurrently with the electronic or facsimile exchange
of documents and signatures at the Company or at such location as is mutually acceptable to the Investors and the Company. At the
Closing:

 

(a)          each
Investor shall deliver to the Company by wire transfer as set forth below:

Mellon Bank Pittsburdgh, PA

ABA # :            
             043000261

FFC:                
               Merrill Lynch

Account # :                    
101-1730

Name on the account:     NanoVibronix
Inc

FFC:                                831-07B23

or such other
method of payment as the Company shall approve, an amount equal to the purchase price of the Securities purchased by such Investor
hereunder; and

 

    	 

    	 

    

  

(b)          the
Company shall issue and deliver to each Investor a stock certificate registered in the name of the Investor, representing the number
of Purchased Shares purchased by such Investor, and the number of Purchased Warrants purchased by such Investor; and

 

(c)          the
Company shall have obtained all requisite approvals and waivers of its Board of Directors and stockholders with respect to the
transactions described herein and the amendment and restatement of the Company’s certificate of incorporation in substantially
the form attached hereto as Exhibit 2 and shall have filed such certificate with the Secretary of State of the State of
Delaware.

 

2.           Representations
and Warranties of the Company. The Company hereby makes the following representations and warranties only:

 

2.1           The
Company (i) is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation,
(ii) has the corporate power and authority to own or lease its properties as and in the places where such business is conducted
and to carry on its business as conducted, and (iii) is duly qualified as a foreign corporation authorized to do business in every
jurisdiction where the failure to so qualify, individually or in the aggregate, would have a material adverse effect on the operations,
assets, liabilities, financial condition or business of the Company or its subsidiary (“Material Adverse Effect”).

 

2.2           The
subsidiary is duly incorporated and validly existing under the laws of its jurisdiction of incorporation and is qualified to do
business as a foreign corporation in each jurisdiction in which qualification is required, except where failure to so qualify would
not have a Material Adverse Effect.

 

2.3           As
of the date of this Agreement (assuming that the Restated Certificate has been filed) and as of the Closing, the Company (i) has
the requisite corporate power and authority to execute, deliver and perform this Agreement and the other documents set forth in
Section 1.2 above (“Transaction Documents”) and to incur the obligations herein and therein and (ii) has been authorized
by all necessary corporate action to execute, deliver and perform this Agreement and the other Transaction Documents and to consummate
the transactions contemplated hereby and thereby (the “Contemplated Transactions”).

 

2.4           Each
of this Agreement and the other Transaction Documents is a valid and binding obligation of the Company enforceable in accordance
with its terms except as limited by applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting the
enforcement of creditors’ rights and the availability of equitable remedies (regardless of whether such enforceability is
considered in a proceeding at law or equity).

 

2.5           
As of the date of this Agreement (assuming that the Restated Certificate has been filed) and as of the Closing, the issuance of
the Securities has been duly authorized by all necessary corporate action on the part of the Company and, when issued to, delivered
to, and paid for by the Investors in accordance with this Agreement, the Purchased Shares will be validly issued, fully paid and
non-assessable.

 

    	2

    	 

    

 

3.           Representations
and Warranties and Agreement of the Investors. Each Investor represents and warrants to the Company as follows:

 

3.1.        Authorization.
Each Investor (i) has full power and authority to execute, deliver and perform this Agreement and the other Transaction Documents
to which it is a party and to incur the obligations herein and therein and (ii) if applicable, has been authorized by all necessary
corporate action to execute, deliver and perform this Agreement and the other Transaction Documents and to consummate the Contemplated
Transactions. Each of this Agreement and the other Transaction Documents is a valid and binding obligation of Investor enforceable
in accordance with its terms, except as limited by applicable bankruptcy, reorganization, insolvency, moratorium or similar laws
affecting the enforcement of creditors’ rights and the availability of equitable remedies (regardless of whether such enforceability
is considered in a proceeding at law or equity).

 

3.2.        Securities
Laws Representations and Covenants of Investors.

 

(a)          This
Agreement is made with each Investor in reliance upon such Investor’s representation to the Company, which by such Investor’s
execution of this Agreement such Investor hereby confirms, that the Securities to be received by such Investor will be acquired
for investment for such Investor’s own account, not as a nominee or agent, and not with a view to the resale or distribution
of any part thereof such that such Investor would constitute an “underwriter” under the Securities
Act of 1933, as amended (the “Securities Act”). The Investor has not granted any right to any other person to
acquire the Securities purchased by such Investor or the shares of the Company issuable upon the conversion or exercise of the
Securities (“Underlying Shares”) except as permitted by the Securities Act and other applicable securities laws.

 

(b)          Each
Investor understands and acknowledges that the offering of the Securities pursuant to this Agreement will not be registered under
the Securities Act or qualified under any other applicable securities laws on the grounds that the offering and sale of the Securities
are exempt from registration and qualification and that the Company’s reliance upon such exemption is predicated upon such
Investor’s representations set forth in this Agreement.

 

(c)          Each
Investor covenants that, unless the Purchased Shares, the Purchased Warrants, the Underlying Shares or any other shares of capital
stock of the Company received in respect of the foregoing have been registered pursuant to the Securities Act, such Investor will
not dispose of such securities unless and until such Investor shall have notified the Company of the proposed disposition and shall
have furnished the Company with an opinion of counsel reasonably satisfactory in form and substance to the Company and its counsel
to the effect that (i) such disposition will not require registration under the Securities Act and (ii) appropriate action
necessary for compliance with the Securities Act and any applicable state, local or foreign law has been taken. Therefore, such
Investor may be required to hold such securities for an indeterminate period.

 

    	3

    	 

    

 

(d)         Each
Investor further represents that such Investor (i) is able to fend for itself in the Contemplated Transactions; (ii) has such
knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of such Investor’s
prospective investment in the Securities; (iii)  has the ability to bear the economic risks of such Investor’s prospective
investment and can afford the complete loss of such investment; (iv)  has received all the information it considers necessary
or appropriate for deciding whether to purchase the Securities; (v)  has had access to officers of the Company and an opportunity
to ask questions of and receive satisfactory answers from such officers; (vi) qualifies as an “accredited investor”
as such term is defined under Rule 501 promulgated under the Securities Act; and (vi) in the case a corporation, a partnership,
a trust or other business entity, further represents by execution of this Agreement that it has not been organized for the purpose
of purchasing the Securities.

 

(e)         The
maximum liability of the Company under this Agreement to each Investor shall not exceed the purchase price paid by such Investor.
An Investor may not bring any claim arising out of this Agreement unless written notice of the claim shall have been given to the
Company no later than 3 months following of the date that the Company's financial statements for the period ending 31 December
2009 shall be made available.

 

(f)          Each Investor
shall provide all information and execute all documents that the Company shall deem necessary to prepare and file with the SEC
a Form D concerning the sale of the Securities.

 

3.3.         Legends.
All certificates for the Securities, and the Underlying Shares, and each certificate representing any shares of capital stock of
the Company received in respect of the foregoing, and each certificate for any such securities issued to subsequent transferees
of any such certificate shall bear the following legend:

 

			“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF REGISTRATION OR
AN EXEMPTION THEREFROM UNDER SAID ACT.”

 

In addition, such certificates shall bear
any legend that, in the opinion of the Company’s counsel, is required under the other Transaction Documents or pursuant to
any state, local or foreign law governing the Securities or the Underlying Shares.

 

3.4.       Brokers or Finders. Each Investor
represents and warrants that neither the Company nor the Investor has incurred, directly or indirectly, as a result of any action
taken by the Investor, any liability for brokerage of finders’ fees or agents’ commissions or any similar charges in
connection with this Agreement.

 

    	4

    	 

    

 

3.5.      Buyout
Proposal.  If at any time (i) the Company receives from any third party (in which no stockholder has a significant
interest) a bona fide offer or proposal (a “Buyout Proposal”) to purchase all of the shares of the Company, or all
or substantially all of the assets of the Company, or to effect a merger or consolidation with the Company, which is conditioned
upon the sale of all shares of the Company to such third party or stockholder approval and (ii) the holders of shares representing
seventy five percent (75%) of the aggregate voting power of the Company approve the Buyout Proposal, then the Investors shall transfer
their stock in the Company to such third party or shall vote in favor of the proposed Buyout Proposal, as applicable.

 

4. Adjustments.

 

4.1  Definitions.

 

(a)      “Issuance
Conversion Event” shall mean an aggregate investment in the Company of $1,000,000 or more in which the Company shall have
issued shares in the Company or securities (including convertible debt) exercisable or convertible into shares in the Company at
a specific price per share, other than shares issued (i) to employees, directors or consultants pursuant to any equity compensation
plan or otherwise approved by the Company’s Board of Directors; (ii) by reason of a stock dividend, stock split, split-up
or other distribution of shares of Common Stock; (iii) to bona fide leasing companies, strategic partners, or major lenders; or
(iv) upon conversion or exercise of options, warrants or other convertible securities which are outstanding at the date of this
Agreement.

 

(b)      “Non-Qualifying
Issuance” shall mean an aggregate investment in the Company of less than $1,000,000 which is otherwise described in Section
4.1(a) above.

 

(c)      “Entity
Conversion Event” shall mean a reorganization, consolidation or merger of the Company into or with any other entity (other
than a transaction as a result of which the stockholders of the Company immediately prior to such transaction hold a majority of
the combined voting power of the surviving entity immediately after such transaction), the sale of all or substantially all of
the Company’s business assets, or the sale of all or substantially all of the shares in the Company.

 

(d)      “Conversion
Period” shall mean the period commencing immediately after the completion of the current round of investment and ending on
March 31, 2012.

 

4.2  The Securities
shall be subject to exchange and/or modification (as described below) upon the first to occur of the following events or election
during the Conversion Period:

 

(a)  In the event that
an Issuance Conversion Event shall occur during the Conversion Period, the Securities purchased under this Agreement and any Underlying
Shares purchased pursuant to the Warrants shall automatically be cancelled and shall represent solely the right to receive such
number of Issuance Conversion Event securities which would have been issued to such Investor pursuant to the terms of such Issuance
in consideration for the sum of: (1) the purchase price paid by the Investor hereunder, (2) any purchase price previously paid
in connection with any prior exercise of the Warrants, plus (3) simple interest at 8% per annum from the date of payment of such
amounts provided that   the purchase price for such Issuance Conversion Event securities shall be deemed reduced by
thirty (30%) percent.

 

    	5

    	 

    

 

(b) The Company shall
give the Investor written notice of each Non-Qualifying Issuance. Within 10 days of the Company’s notice, the Investor may
elect by written notice to the Company and the surrender of his Securities and any Underlying Shares purchased pursuant to the
Warrants to receive in exchange therefor such number of Non-Qualifying Issuance securities which would have been issued to him
in consideration for the sum of: (1) the purchase price paid by the Investor hereunder, plus (2) any purchase price previously
paid in connection with any prior exercise of the Warrants.

 

(c)  In the event that
an Entity Conversion Event shall occur during the Conversion Period, the Investor may elect to receive, in lieu of any distribution
due under the Amended and Restated Certificate of Incorporation and in cancellation of his Purchased Shares, proceeds (to the extent
available before any distributions are made to the holders of Series A Stock or Common Stock) equal to: (i) 130% of the purchase
price paid under this Agreement, plus (ii) an amount equal to simple interest on the purchase price at 8% per annum from the date
of payment.

 

4.3  In the event that
during the Conversion Period, a Conversion Event shall not have occurred and the Investor shall not have elected to exchange such
Investor’s Securities as set forth in Section 4.2(b) above, (a) the Investor shall be issued additional shares of Series
B Convertible Preferred Stock such that the Investor’s average purchase price for the Purchased Shares and the additional
shares issuable under this Section shall be $10.00 per share; and (b) the Purchased Warrants shall be amended so that the “Purchase
Price” therein shall be $10.00 per share and the aggregate number of Warrants increased accordingly. (Such $10.00 amount
shall be appropriately adjusted in the case of stock dividend, stock split or combination.)

 

5.           Miscellaneous.

 

5.1.       Entire
Agreement; Successors and Assigns. This Agreement (including all schedules and exhibits thereto) constitutes the entire contract
between the parties relative to the subject matter hereof and thereof. Any previous agreement among the parties with respect to
the sale of the Securities is superseded by this Agreement. The terms and conditions of this Agreement shall inure to the benefit
of and be binding upon the respective executors, administrators, heirs, successors and assigns of the parties. Except as expressly
provided herein, nothing in this Agreement, expressed or implied, is intended to confer upon any party, other than the parties
hereto, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

5.2.       Governing
Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the General Corporation Law of the
State of Delaware as to matters within the scope thereof, and as to all other matters shall be governed by and construed in accordance
with the internal laws of the State of New York without regard to principles of conflicts of law. Each party hereby irrevocably
consents and submits to the jurisdiction of any New York State or United States Federal Court sitting in the State of New York,
County of New York, over any action or proceeding arising out of or relating to this Agreement and irrevocably consents to the
service of any and all process in any such action or proceeding by registered mail addressed to such party at its address shown
below. Each party further waives any objection to venue in New York and any objection to an action or proceeding in such state
and county on the basis of forum non-conveniens. Each party also waives any right to trial by jury.

 

    	6

    	 

    

 

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

 

5.4.       Headings.
The headings of the sections of this Agreement are for convenience and shall not by themselves determine the interpretation of
this Agreement.

 

5.5.      Notices. Any notice required or permitted
hereunder shall be given in writing and shall be deemed effectively given upon personal delivery and if a fax number has been provided,
upon delivery (with answerback confirmed), addressed to a party at its address and the fax number, if any, shown below or at such
other address and fax number as such party may designate by three days advance notice to the other party.

 

Any notice to the Investors shall be sent to the addresses set forth on the signature pages hereof.

 

	Any notice to the Company shall be sent to:	With a copy to:
	Nano Vibronix Inc.	 	 
	601 Chestnut Street	 	 
	Cedarhurst, NY 11516	 	Nano Vibronix, Inc.
	Attention: Dr. Harold Jacob	 	Fax:   +972 4 820 2794
	Fax: 516 569 6872	 	 

 

5.6.        Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable
law, but if any provision of this Agreement shall be deemed prohibited or invalid under such applicable law, such provision shall
be ineffective to the extent of such prohibition or invalidity, and such prohibition or invalidity shall not invalidate the remainder
of such provision or any other provision of this Agreement.

 

5.7.       Expenses.
Irrespective of whether the Closing is effected, the Company shall pay all costs and expenses that it incurs with respect to the
negotiation, execution, delivery and performance of this Agreement. Each Investor shall be responsible for all costs incurred by
it in connection with the negotiation, execution, delivery and performance of this Agreement including, but not limited to, legal
fees and expenses.

 

5.8        Amendments
and Waivers. Any provision of this Agreement may be amended and the observance of any provision of this Agreement may be waived
(either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the
Company and the holders of a majority of the aggregate then-outstanding Shares. Any amendment or waiver effected in accordance
with this Section shall be binding upon each holder of any securities purchased under this Agreement at the time outstanding (including
the Underlying Shares or other securities into which such securities are convertible), each future holder of all such securities,
and the Company.

 

[REMAINDER OF PAGE INTENTIONALLY BLANK]

 

    	7

    	 

    

 

SIGNATURE PAGE

TO

NANO VIBRONIX INC.

SUBSCRIPTION AGREEMENT

  

IF the PURCHASER is an INDIVIDUAL, please
complete the following:

 

IN WITNESS WHEREOF, the undersigned has
executed this Agreement this __ day of ______________.

 

Amount of Subscription:

$_________ 

 

	Number of Purchased Shares:	 	Investor Name:
	 	 	 
	 	 	 
	 	 	Signature of Investor
	 	 	 
	 	 	 
	 	 	Social Security Number
	 	 	 
	 	 	 
	 	 	Address and Fax Number
	 	 	 
	 	 	 
	 	 	 
	ACCEPTED AND AGREED:	 	 
	 	 	 
	NANO VIBRONIX INC.	 	 
	 	 	 
	By:	 	 	 	 
	 	Name:	 	 
	 	Title:	 	 

 

	Dated:  	 	 	 

 

    	 

    	 

    

 

SIGNATURE PAGE

TO

NANO VIBRONIX, INC.

SUBSCRIPTION AGREEMENT

 

IF the INTERESTS will be held as JOINT TENANTS,
as TENANTS IN COMMON, or as COMMUNITY PROPERTY, please complete the following:

 

IN WITNESS WHEREOF, the undersigned has
executed this Agreement this __ day of ____________.

 

	Amount of Subscription:	 	 
	$__________________	 	Print Name of a Purchaser
	 	 	 
	Number of Purchased Shares:	 	 
	___________	 	Signature of a Purchaser
	 	 	 
	 	 	 
	 	 	Print Name of Spouse or Other Purchaser
	 	 	 
	 	 	 
	 	 	Signature of Spouse or Other Purchaser
	 	 	 
	 	 	 
	 	 	Social Security Number
	 	 	 
	 	 	 
	 	 	Address
	 	 	 
	 	 	 
	 	 	 
	ACCEPTED AND AGREED:	 	 
	 	 	 
	NANO VIBRONIX INC.	 	 
	 	 	 
	By:	 	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 
	Dated: ________________	 	 

 

    	 

    	 

    

 

SIGNATURE PAGE

TO

NANO VIBRONIX INC.

SUBSCRIPTION AGREEMENT

 

IF the PURCHASER is a PARTNERSHIP, CORPORATION,
TRUST or OTHER ENTITY, please complete the following:

 

IN WITNESS WHEREOF, the undersigned has
executed this Agreement this __ day of ______________.

 

	Amount of Subscription:	 	 
	$___________________	 	 
	 	 	 
	Number of Purchased Shares:	 	 
	_____________	 	 
	 	 	 
	 	 	Print Full Legal Name of Partnership,
	 	 	Company, Trust or Other Entity
	 	 	 
	 	 	By:	 
	 	 	 	     (Authorized Signatory)
	 	 	Name:	 
	 	 	Title:	 

 

	 	 	Address and Fax Number:	 
	 	 	 
	 	 	 

 

	 	Employer Identification Number: _________
	 	Date and State of Incorporation or Organization:______________________
	 	Date on which Taxable Year Ends:_________________________________

 

ACCEPTED AND AGREED:

	 
	NANO VIBRONIX INC.
	 
	By:	 	 
	Name:
	Title:
	
	Dated:

 

    	-2-

    	 

    

EXHIBIT 1

 

	Void after March 31, 2014	Warrant No. ________

 

This Warrant and any shares acquired
upon the exercise of this Warrant have not been registered under the Securities Act of 1933. This Warrant and such shares may not
be sold or transferred in the absence of such registration or an exemption therefrom under said Act. This Warrant and such shares
may not be transferred except upon the conditions specified in this Warrant, and no transfer of this Warrant or such shares shall
be valid or effective unless and until such conditions shall have been complied with.

 

NANO VIBRONIX, INC.

 

SERIES B PREFERRED STOCK PURCHASE WARRANT

 

Nano Vibronix, Inc. (the “Company”), having
its principal office at 601 Chestnut Street, Cedarhurst, NY 11516, hereby certifies that, for value received, _____________
(“Investor”), or assigns, is entitled, subject to the terms set forth below, to purchase from the Company at
any time on, or from time to time after, ________, 2009 and before 5:00 P.M., New York City time, on March 31, 2014, or as curtailed
in accordance with the terms hereof (the “Expiration Date”), ______________ fully paid and non-assessable shares of
Preferred Stock of the Company, at the Purchase Price per share of $17.25. The number and
character of such shares of Preferred Stock and the Purchase Price per share are subject to adjustment as provided herein.

 

This Warrant is subject to adjustment and modification in
accordance with the provisions of the Subscription Agreement dated as of _________, 2009 between the Company and the Investor,
et al (“Subscription Agreement”). 

 

As used herein, the following terms have the following respective
meanings:

 

“Preferred Stock” means the Series B Convertible
Preferred Stock, par value $.001 per share, of the Company.

 

“Exchange Act” means the Securities Exchange
Act of 1934 as the same shall be in effect at the time.

 

“Holder” means any record owner of this Warrant.

 

“Market Price” has the meaning set forth
in Section 2.4.

 

“Original Issue Date” means _______.

 

    	 

    	 

    

 

“Other Securities” refers to any stock (other
than Preferred Stock) and other securities of the Company or any other entity which the Holder of this Warrant at any time shall
be entitled to receive, or shall have received, upon the exercise of this Warrant, in lieu of or in addition to Preferred Stock,
or which at any time shall be issuable or shall have been issued in exchange for or in replacement of Preferred Stock or Other
Securities pursuant to Section 5 or otherwise.

 

“Securities Act” means the Securities Act
of 1933 as the same shall be in effect at the time.

 

“Underlying Securities” means any Preferred
Stock or Other Securities issued or issuable upon exercise of this Warrant.

 

“Warrant” means, as applicable, this Warrant
or each right as set forth in this Warrant to purchase one share of Preferred Stock, as adjusted.

 

1.            Sale
or Exercise Without Registration. If, at the time of any exercise, transfer or surrender for exchange of a Warrant or of Underlying
Securities previously issued upon the exercise of Warrants, such Warrant or Underlying Securities shall not be registered under
the Securities Act, the Company may require, as a condition of allowing such exercise, transfer or exchange, that the Holder or
transferee of such Warrant or Underlying Securities, as the case may be, furnish to the Company an opinion of counsel, reasonably
satisfactory to the Company, to the effect that such exercise, transfer or exchange may be made without registration under the
Securities Act.

 

		2.	Exercise of Warrant.

 

			2.1.       Exercise in Full. Subject to the provisions hereof, this Warrant may be exercised in full by the Holder hereof
by surrender of this Warrant, with the form of subscription at the end hereof duly executed by such Holder, to the Company at its
principal office accompanied by payment, in cash or by certified or official bank check payable to the order of the Company, in
the amount obtained by multiplying the number of shares of Purchase Stock issuable upon exercise of this Warrant by the Purchase
Price per share, after giving effect to all adjustments through the date of exercise.

 

			2.2.      Partial Exercise. Subject to the provisions hereof,
this Warrant may be exercised in part by surrender of this Warrant in the manner and at the place provided in Section 3.1 except
that the amount payable by the Holder upon any partial exercise shall be the amount obtained by multiplying (a) the number of
shares of Preferred Stock (without giving effect to any adjustment therein) designated by the Holder in the subscription at the
end hereof, by (b) the Purchase Price per share. Upon any such partial exercise, the Company at its expense will forthwith issue
and deliver to or upon the order of the Holder hereof a new Warrant of like tenor, for the remaining number of shares of Preferred
Stock which may be purchased hereunder.

 

    	.2

    	 

    

 

			2.3.          Certain Exercises. If this Warrant is to be exercised
in connection with a registered public offering or sale of the Company, such exercise may, at the election of the Holder, be conditioned
on the consummation of the public offering or sale of the Company, in which case such exercise shall not be deemed effective until
the consummation of such transaction.

 

3.             Delivery
of Stock Certificates, etc., on Exercise. As soon as practicable after the exercise of this Warrant in full or in part, the
Company at its own expense (including the payment by it of any applicable issue taxes) will cause to be issued in the name of and
delivered to the Holder hereof, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct, a
certificate or certificates for the number of fully paid and non-assessable shares of Preferred Stock or Other Securities to which
such Holder shall be entitled upon such exercise, plus, in lieu of any fractional share to which such Holder would otherwise be
entitled, cash equal to such fraction multiplied by the then-current Market Price of one full share, together with any other stock
or other securities and property (including cash, where applicable) to which such Holder is entitled upon such exercise pursuant
to Section 4 or otherwise.

 

4.             Adjustment
for Dividends in Other Stock, Property, etc.; Reclassification, etc. In case at any time or from time to time after the Original
Issue Date, the holders of Preferred Stock (or, if applicable, Other Securities) shall have received, or (on or after the record
date fixed for the determination of stockholders eligible to receive) shall have become entitled to receive, without payment therefor

 

(a)     other or additional
stock or other securities or property (other than cash) by way of dividend, or

 

(b)     any cash paid or payable
(including, without limitation, by way of dividend), or

 

(c)     other or additional
stock or other securities or property (including cash) by way of spin-off, split-up, reclassification, recapitalization, combination
of shares or similar corporate rearrangement,

 

then, and in each such case the Holder of this Warrant, upon
the exercise hereof as provided in Section 2, shall be entitled to receive the amount of stock and other securities and property
(including cash in the cases referred to in subdivisions (b) and (c) of this Section 4) which such Holder would hold on the date
of such exercise if on the Original Issue Date such Holder had been the Holder of record of the number of shares of Preferred Stock
called for on the face of this Warrant and had thereafter, during the period from the Original Issue Date to and including the
date of such exercise, retained such shares and all such other or additional stock and other securities and property (including
cash in the cases referred to in subdivisions (b) and (c) of this Section 4) receivable by such Holder as aforesaid during such
period, giving effect to all adjustments called for during such period by Section 5 hereof. If the number of shares of Preferred
Stock outstanding at any time after the date hereof is decreased by a combination or reverse stock split of the outstanding shares
of Common Stock, the Purchase Price per share shall be increased, and the number of shares of Preferred Stock purchasable under
this Warrant shall be decreased in proportion to such decrease in outstanding shares of Preferred Stock.

 

    	.3

    	 

    

  

5.     Reorganization,
Consolidation, Merger, etc. In case the Company after the Original Issue Date shall (a) effect a reorganization, (b) consolidate
with or merge into any other entity or (c) transfer all or substantially all of its properties or assets to any other entity under
any plan or arrangement contemplating the dissolution of the Company, then, in each such case, the Warrant shall be terminated
upon such consummation or dissolution.

 

6.     Further
Assurances. The Company will take all such action as may be necessary or appropriate in order that the Company may validly
and legally issue fully paid and non-assessable shares of stock upon the exercise of all Warrants from time to time outstanding.

 

7.     Officer's
Certificate as to Adjustments. In each case of any adjustment or readjustment in the shares of Preferred Stock (or Other Securities)
issuable upon the exercise of the Warrants, the Company will issue a certificate setting forth such adjustment or readjustment
and the basis therefor .

 

8.     Notices
of Record Date, etc. In the event of

 

(a)      any taking by the Company
of a record of its stockholders for the purpose of determining the stockholders thereof who are entitled to receive any dividend
or other distribution, or any right to subscribe for, purchase or otherwise acquire any shares of stock of any class or any other
securities or property, or to receive any other right, or for the purpose of determining stockholders who are entitled to vote
in connection with any proposed capital reorganization of the Company, any reclassification or recapitalization of the capital
stock of the Company or any transfer of all or substantially all the assets of the Company to or consolidation or merger of the
Company with or into any other person, or

 

(b)      any voluntary or involuntary
dissolution, liquidation or winding-up of the Company, or

 

  (c)          any proposed issue or grant by the Company of any Common Stock, or any other securities, or any right or option to subscribe for, purchase or otherwise acquire any shares of stock of any class or any other securities (other than the issue of Common Stock on the exercise of the Warrants),

 

then and in each such event the Company will mail or cause to
be mailed to each Holder of a Warrant a notice specifying (i) the date on which any such record is to be taken for the purpose
of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, (ii) the
date on which any such reorganization, reclassification, recapitalization, transfer, consolidation, merger, dissolution, liquidation
or winding-up is to take place, and the time, if any, as of which the Holders of record of Underlying Securities shall be entitled
to exchange their shares of Underlying Securities for securities or other property deliverable upon such reorganization, reclassification,
recapitalization, transfer, consolidation, merger, dissolution, liquidation or winding-up and (iii) the amount and character of
any stock or other securities, or rights or options with respect thereto, proposed to be issued or granted, the date of such proposed
issue or grant and the persons or class of persons to whom such proposed issue or grant and the persons or class of persons to
whom such proposed issue or grant is to be offered or made. Such notice shall be given at least 10 days prior to the date therein
specified.

 

    	.4

    	 

    

  

9.          Reservation
of Stock, etc., Issuable on Exercise of Warrants. The Company will at all times reserve and keep available, solely for issuance
and delivery upon the exercise of the Warrants, all shares of Preferred Stock (or Other Securities) from time to time issuable
upon the exercise of the Warrants.

 

10.         Notices,
etc. All notices and other communications from the Company to the Holder of this Warrant shall be delivered by fax or courier,
at such address as may have been furnished to the Company in writing by such Holder, or, until an address is so furnished, to and
at the address of the last Holder of this Warrant who has so furnished an address to the Company.

 

11.         Miscellaneous.
This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the
Company and the Holder or as otherwise provided in the Subscription Agreement. This Warrant shall be governed by and construed
and enforced in accordance with the General Corporation Law of the State of Delaware without regard to principles of conflicts
of law. Each party hereby irrevocably consents and submits to the jurisdiction of any New York State or United States Federal Court
sitting in the State of New York, County of New York, over any action or proceeding arising out of or relating to this Agreement
and irrevocably consents to the service of any and all process in any such action or proceeding by registered mail addressed to
such party at its address specified herein (or as otherwise noticed to the other party). Each party further waives any objection
to venue in New York and any objection to an action or proceeding in such state and county on the basis of forum non conveniens.
Each party also waives any right to trial by jury.

 

	Dated: __________ __, 2009	NANO VIBRONIX, INC.
	 	 	 	By:	 
	 	 	 	Name:	 
	Attest:	 		Title:	 

 

    	.5

    	 

    

 

FORM OF SUBSCRIPTION

 

(To be signed only upon exercise of Warrant)

 

To: NANO VIBRONIX, INC.

 

The undersigned, the Holder of the within
Warrant, hereby irrevocably elects to exercise the purchase right represented by such Warrant for, and to purchase thereunder,
_________ shares of Preferred Stock of Nano Vibronix, Inc., and herewith makes payment therefor of $ * and requests that
the certificates for such shares be issued in the name of, and delivered to, ___________________, whose address is _______________________.

Dated:

 

	 	 
	 	(Signature must conform in all respects to name of Holder as specified on the face of the Warrant)
	 	 
	 	
	 	(Address)

 

		*	Insert here the number of shares called for on the face of the Warrant (or, in the case of a partial exercise, the portion
thereof as to which the Warrant is being exercised), in either case without making any adjustment for additional Preferred Stock
or any other stock or other securities or property or cash which, pursuant to the adjustment provisions of the Warrant, may be
deliverable upon exercise.

 

    	.6

    	 

    

EXHIBIT 2

 

 

AMENDED AND RESTATED

 

CERTIFICATE OF INCORPORATION

 

OF

 

NANO VIBRONIX, INC.

 

Nano Vibronix, Inc.
(the “Corporation”), a corporation organized and existing under and by virtue of the General Corporation Law
of the State of Delaware (the “GCL”), does hereby certify that:

 

1.           The
name of the corporation is Nano Vibronix, Inc.

 

2.           The
original Certificate of Incorporation of this Corporation was filed with the Secretary of State of Delaware on October 20, 2003.

 

3.           This
Amended and Restated Certificate of Incorporation, which amends and restates the Corporation’s Certificate of Incorporation
in its entirety, has been duly adopted with the provisions of Sections 242 and 245 of the GCL, and the stockholders of the Corporation
have given their written consent in accordance with the provisions of Section 228 of the General Corporation Law of the State of
Delaware. The provisions of the Amended and Restated Certificate of Incorporation are as follows:

 

ARTICLE I

Name

 

The name of this corporation
is Nano Vibronix, Inc. (the “Corporation”).

 

ARTICLE II

Registered Office

 

The registered office
in the State of Delaware is located at 1313 Market Street, Suite 5100, in the City of Wilmington 19801, County of New Castle, and
its registered agent at such address is PHS Corporate Services, Inc.

 

    	 

    	 

    

 

ARTICLE III

Purpose

 

The purpose of the Corporation
is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State
of Delaware (the “GCL”).

 

ARTICLE IV

Authorized Capital

 

The Corporation is authorized
to issue two classes of capital stock to be designated, respectively, “Common Stock” and “Preferred Stock”.
The total number of shares that the Corporation is authorized to issue is three million four hundred thousand (3,400,000). Two
million four hundred thousand (2,400,000) shares shall be Common Stock, par value $0.001 per share, and one million (1,000,000)
shares shall be Preferred Stock, par value $0.001 per share.

 

Section 4A.          Common
Stock.

 

4A.1.     General.
Subject to the powers, preferences and rights of any Preferred Stock, including any series thereof, having any preference priority
over, or rights superior to, the Common Stock and except as otherwise provided by law and this Article, the holders of the Common
Stock shall have and possess all powers and voting and other rights pertaining to the stock of the corporation and each share of
Common Stock shall be entitled to one vote. Except as otherwise provided by the Delaware General Corporation Law or this Third
Amended and Restated Certificate of Incorporation, the holders of record of Common Stock shall share ratably in all dividends payable
in cash, stock or otherwise and other distributions, whether in respect of liquidation or dissolution (voluntary or involuntary)
or otherwise.

 

4A.2.     Voting.
The holders of the Common Stock are entitled to one vote for each share of Common Stock held at all meetings of stockholders. There
shall be no cumulative voting.

 

4A.3      Number.
The number of authorized shares of Common Stock may be increased or decreased (but not below the number of shares thereof then
outstanding) by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, irrespective
of the provisions of Section 242(b)(2) of the General Corporation Law of the State of Delaware.

 

    	 

    	 

    

 

4A.4      Dividends.
Dividends may be declared and paid on the Common Stock from funds lawfully available therefor as and when determined by the Board
of Directors and subject to any preferential dividend rights of any then outstanding Preferred Stock.

 

4A.5      Liquidation.
Upon the dissolution or liquidation of the Corporation, whether voluntary or involuntary, holders of Common Stock will be entitled
to receive ratably in all assets of the Corporation available for distribution to its stockholders, subject to any preferential
rights of any then outstanding Preferred Stock.

 

Section 4B.          Of
the Preferred Stock, seven hundred thousand (700,000) shares shall be designated the Series A Participating Convertible Preferred
Stock (the “Series A Stock”) and three hundred thousand (300,000) shares shall be designated the Series B Participating
Convertible Preferred Stock (the “Series B Stock”). Capitalized terms not otherwise defined have the meanings
set forth in Section 4.6 below. The rights, preferences, privileges and restrictions, and the number of shares constituting each
such series (the “Series”) and the designation of such series, are set forth as follows:

 

4B.1.      Number
and Designation. Any increase or decrease in the number of authorized shares of the Series shall be effectuated by filing an
amendment to this Fourth Amended and Restated Certificate of Incorporation that has been duly adopted by the Board of Directors
of the Corporation and approved by the stockholders of the Corporation pursuant to the provisions of the GCL and that states that
such increase or reduction has been so authorized.

 

4B.2.      Dividends.
When and as any dividend or distribution is declared or paid by the Corporation on Common Stock, whether payable in cash, property,
securities or rights to acquire securities, the Series A Holders and Series B Holders will be entitled to participate with the
holders of Common Stock in such dividend or distribution as set forth in this Section 4B.2. At the time such dividend or distribution
is payable to the holders of Common Stock, the Corporation will pay to each Series A Holder and Series B Holder such holder’s
share of such dividend or distribution equal to the amount of the dividend or distribution per share of Common Stock payable at
such time multiplied by the aggregate number of shares of Common Stock then obtainable upon conversion of such holder’s Preferred
Stock.

 

    	 

    	 

    

 

4B.3.      Voting
Rights.

 

A.           Generally.
Except as otherwise required by law or as set forth herein, the Series A Holders and Series B Holders shall be entitled to notice
of any shareholders’ meeting and to vote together with the Common Stock, and not as a separate class (except as specifically
provided herein or otherwise required by law), upon any matter submitted for approval by the holders of Common Stock on the following
basis: the Series A Holders and Series B Holder shall have that number of votes equal to the aggregate number of shares of Common
Stock into which their outstanding Preferred Stock is then convertible.

 

B.           Series
A Directors. Until the earlier to occur of (i) a QIPO or (ii) the point at which the equity beneficially owned by the Investors
constitutes less than five percent (5%) of the fully-diluted equity of the Corporation, the 2005 Investors shall have the exclusive
right to elect one member of the Board of Directors of the Corporation (the “2005 Series A Director”), who shall
also be appointed to the Compensation Committee of the Board of Directors. Until the earlier to occur of (i) a QIPO or (ii) the
point at which the equity beneficially owned by the 2007 Investors constitutes less than five percent (5%) of the fully-diluted
equity of the Corporation, Ludgate Investments Limited shall have the exclusive right to elect one member of the Board of Directors
of the Corporation (the “2007 Series A Director”). The manner of election of the remaining members of the Board
of Directors of the Corporation shall be as set forth in the Bylaws of the Corporation.

 

C.           In
addition to any other rights provided by law, so long as any Series A Stock is outstanding but only until the earlier to occur
of (x) a QIPO or (y) the point at which the equity beneficially owned by each of the 2005 Investors and the 2007 Investors constitutes
less than five percent (5%) of the fully-diluted equity of the Corporation (except with respect to clause (i) below, which shall
remain in place so long as any Series A Stock is outstanding), the Corporation, without first obtaining the affirmative vote or
written consent of the holders of not less than a majority of the outstanding shares of the Series A Stock, will not:

 

(i)          amend
or repeal any provision of, or add any provision to, the Corporation’s Certificate of Incorporation, as amended or By-Laws
if such action would alter adversely the liquidation preferences of, or other priorities, rights or privileges provided for the
benefit of, the Series A Stock; or

 

    	 

    	 

    

 

(ii)         authorize
or issue shares of any class or series of stock (other than the Series A Stock) having any preference or priority as to dividends,
voting or liquidation or other rights superior to, or pari passu with, any such preference, priority, right or privilege
of the Series A Stock, or authorize or issue shares of stock of any class or any bonds, debentures, notes or other obligations
convertible into or exchangeable for, or having option rights to purchase, any shares of stock of the Corporation having any preference
or priority as to dividends, voting or liquidation or other rights superior to any such priority, right or privilege of the Series
A Stock;

 

(iii)        reclassify
any class or series of stock junior to the Series A Stock into stock senior to the Series A Stock with respect to any preference,
priority, right or privilege;

 

(iv)        repurchase
or redeem any equity securities of the Corporation; or

 

(v)         increase
the number of members of the Corporation’s Board of Directors to more than five members, except in connection with the issuance
of equity securities of the Corporation to investors who purchase a minimum of fifteen percent (15%) of the then-current fully
diluted equity of the Corporation.

 

4B.4.      Preference
Upon Liquidation.

 

A.           Upon
any liquidation, dissolution or winding up of the Corporation, (i) first, each Series B Holder will be entitled to be paid, before
any distribution or payment is made upon any other securities of the Corporation, an amount in cash equal to the aggregate Liquidation
Value of all shares of Series B Stock held by such holder; (ii) second, each Series A Holder will be entitled to be paid, before
any distribution or payment is made upon any Junior Securities of the Corporation, an amount in cash equal to the aggregate Liquidation
Value of all shares of Series A Stock held by such holder; (iii) thereafter, each Series A Holder and Series B Holder shall participate
in any distribution or payment on a pro rata basis with all Junior Securities and such shares shall thereafter have only the rights
of Common Stock as if such holder’s Preferred Stock had been converted into Common Stock pursuant to Section 4B.5(A).

 

    	 

    	 

    

 

B.           Notwithstanding
Section 4B.5B(ii) below, the reorganization, consolidation or the merger of the Corporation into or with any other corporation(s)
or other entity(ies) (other than a transaction as a result of which the stockholders of the Corporation immediately prior to such
transaction hold a majority of the combined voting power of the surviving entity immediately after such transaction) (a “Reorganization”),
the sale, lease, licensing, exchange or other transfer by the Corporation of all or more than 50% of the Corporation’s business
assets or the commencement by the Corporation of a voluntary case under the United States bankruptcy laws or any applicable bankruptcy,
insolvency or similar law of any other country, or consent to the entry of an order for relief in an involuntary case under any
such law or to the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or other similar official)
of the Corporation or of or more than 50% of the Corporation’s business assets, or the making of an assignment for the benefit
of its creditors, or an admission in writing of its inability to pay its debts generally as they become due (any of such actions
or events, a “Material Event”), will be deemed to be a liquidation, dissolution or winding up of the Corporation
within the meaning of this Section 4B.4. Notwithstanding the foregoing, any Series A Holder [or Series B Holder] may elect, in
such holder’s sole discretion, upon written notice to the Corporation not less than three (3) days before any such Reorganization,
for such Reorganization of the Corporation not to be deemed to be a liquidation, dissolution or winding up of the Corporation within
the meaning of this Section 4B.4 with respect to such holder’s shares.

 

4B.5.      Conversion
into Conversion Stock

 

A.           Conversion.

 

(i)           Mandatory
Conversion.

 

(a)          Upon
QIPO. All of the outstanding shares of Series A Stock and Series B Stock will be automatically converted into the number of
shares of Conversion Stock calculated in accordance with the provisions of Section 4.5A(iii) hereof upon the closing of the QIPO.
Written notice of such mandatory conversion shall be delivered to all holders of Preferred Stock as soon as reasonably possible
following the entry into definitive agreements for the consummation of the QIPO.

 

(b)          Upon
Call of Required Holders. The Required Holders of the Series A Stock or Series B Stock may, upon at least thirty (30) days
notice to the Corporation, cause each outstanding share of Series A Stock or Series B Stock, respectively, to be called for conversion
into shares of Common Stock at the then effective Conversion Price (a “Required Conversion”). Such notice shall
state the requested date of conversion. The Corporation shall give notice of any Required Conversion, at least fifteen (15) days
prior to the requested date of conversion, by certified or registered mail (return receipt requested), postage prepaid, to each
of the Series A Holders or Series B Holders (other than the Required Holders who have given a notice of conversion). Such notice
shall be addressed to each such Series A Holder or Series B Holder at the address as it appears on the stock transfer books of
the Corporation and shall specify the date of conversion and the number of shares requested to be converted.

 

    	 

    	 

    

 

(ii)          Optional
Conversion. A Series A Holder or Series B Holder shall at any time have the right to convert any or all of its shares of Preferred
Stock into the number of shares of Conversion Stock calculated in accordance with the provisions of Section 4B.5A(iii) hereof.

 

(iii)         Conversion
Ratio. Upon conversion of any or all shares of Preferred Stock pursuant to this Section 4B.5A, the Holder shall be entitled
to receive the number of shares of Conversion Stock equal to the product of (a) the number of shares of Preferred Stock being converted
and (b) a fraction, the numerator of which shall be equal to the Series Issuance Price (as hereafter defined), and the denominator
of which shall be equal to the then-applicable Conversion Price (as adjusted, if applicable, pursuant to the provisions of Section
4B.5B hereof).

 

(iv)         As
soon as possible after a conversion has been effected, the Corporation will deliver to the converting holder:

 

(a)          a
certificate or certificates representing the number of shares of Conversion Stock issuable by reason of such conversion in such
name or names and such denomination or denominations as the converting holder has specified; and

 

    	 

    	 

    

 

(b)          a
certificate representing any shares of Series A Stock which were represented by the certificate or certificates delivered to the
Corporation in connection with such conversion but which were not converted.

 

(v)          Fractional
Shares. No fractional shares of Conversion Stock shall be issued upon any conversion. In lieu of any fractional share of Conversion
Stock that would have been issuable upon any conversion, the Corporation will pay the holder of the Conversion Stock the Fair Market
Value of such fractional share.

 

(vi)         Conversion
Fees. The issuance of certificates for shares of Conversion Stock upon conversion of Preferred Stock will be made without charge.

 

(vii)        Books
of the Corporation. The Corporation will not close its books against the transfer of Preferred Stock or Conversion Stock issued
or issuable upon conversion of Preferred Stock in any manner which interferes with the conversion of Preferred Stock.

 

B.           Adjustment
of Conversion Price. In order to prevent dilution of the conversion rights granted under this Section, the Conversion Price
will be subject to adjustment from time to time pursuant to this Section 4B.5B.

 

(i)           Subdivision
or Combination of Common Stock; Dissolution.

 

(a)          If
the Corporation at any time or from time to time following the Original Issue Date subdivides (by any reclassification, stock split,
stock dividend or otherwise) its outstanding shares of Common Stock into a greater number of shares (without a corresponding change
to the Series A Stock), the Conversion Price in effect immediately prior to such subdivision will, concurrently with the effectiveness
of such subdivision, be proportionately reduced, and if the Corporation at any time combines (by reclassification, reverse stock
split or otherwise) its outstanding shares of Common Stock into a smaller number of shares (without a corresponding change to its
Preferred Stock), the Conversion Price in effect immediately prior to such combination will, concurrently with the effectiveness
of such combination, be proportionately increased. In the event of any such reclassification, stock split, stock dividend or subdivision,
each Series A Holder and Series B Holder shall have the right thereafter to convert such stock into the kind and amount of
stock and other securities and property receivable upon such recapitalization, reclassification or other change by holders of the
maximum number of shares of Common Stock into which such shares of Preferred Stock could have been converted immediately prior
to such recapitalization, reclassification, stock split, subdivision or other change, all subject to further adjustment as provided
herein or as provided by the terms of such other securities or property.

 

    	 

    	 

    

 

(b)          In
the event of a judicial or non-judicial dissolution of the Corporation, the conversion rights and privileges of the Series A Holders
and Series B Holders shall terminate on a date, as fixed by the Board of Directors of the Corporation, not more than 30 days and
not less than 3 days before the date of such dissolution; provided that the Series A Holders and Series B Holders receive at least
45 days prior notice of such dissolution setting forth in detail the material terms of dissolution.

 

(ii)          Reorganizations,
Mergers or Consolidations. If at any time or from time to time after the Original Issue Date, there is a capital reorganization
of the Common Stock (without a corresponding change to the Preferred Stock) or the merger or consolidation of the Corporation with
or into another corporation or another entity or person, as a part of such capital reorganization, merger or consolidation, provision
shall be made so that the Preferred Stock Holders shall thereafter be entitled to receive, upon conversion of the Preferred Stock
Stock, the number of shares of stock or other securities or property to which a holder of the number of shares of Common Stock
deliverable upon conversion would have been entitled on such capital reorganization, merger or consolidation, subject to adjustment
in respect of such stock or securities by the terms thereof. In any such case, appropriate adjustment shall be made in the application
of the provisions of this Section 4B.5 with respect to the rights of the Preferred Stock Holders after the capital reorganization
to the end that the provisions of this Section 4B.5 (including adjustment of the Conversion Price then in effect and the number
of shares issuable upon conversion of the Preferred Stock) shall be applicable after that event and be as nearly equivalent as
practicable.

 

(iii)         Other
Adjustments. The Conversion Price of Series A Stock issued by the Company to the 2005 Investors shall also be subject to other
adjustments, as follows:

 

    	 

    	 

    

 

(a)          General.

 

(x)          In
any case to which Sections 4B.5B(i) and 4B.5B(ii) hereof are not applicable, except as set forth below, where the Corporation shall
issue or sell shares of its Common Stock after the Original Issue Date for a consideration per share (after subtracting the Fair
Market Value of any securities or other assets transferred by the Corporation in units or otherwise together with such Common Stock
(“Additional Assets”)) that is less than the Conversion Price in effect at the time of issuance or sale of such
additional shares (such lower consideration per share, the “Issuance Price”), then the Conversion Price in effect
hereunder shall simultaneously with such issuance or sale be reduced to an amount equal to the Issuance Price; provided that in
the event the Issuance Price would be less than the Benchmark Price (as hereinafter defined), the Conversion Price shall be the
Benchmark Price, as further adjusted pursuant to Section 4B.5B(iii)(a)(y).

 

(y)          To
the extent that the Issuance Price shall be less than the lower of the Benchmark Price or the Conversion Price then in effect (the
“Weighted Average Price”), the Conversion Price per share in effect hereunder shall simultaneously with such
issuance or sale be further reduced to a price determined by multiplying the Weighted Average Price by the quotient of (1) an amount
equal to (x) the total number of shares of Common Stock outstanding immediately prior to such issuance or sale, assuming conversion
or exercise of all Convertible Securities and Options that are convertible or exercisable (as the case may be) at a price below
the Weighted Average Price, multiplied by the Weighted Average Price (or, in the event of further adjustments, the Conversion Price
in effect hereunder immediately prior to such issuance or sale), plus (y) the consideration, if any, received by the Corporation
upon such issuance or sale, divided by (2) the total number of shares of Common Stock outstanding immediately after issuance or
sale of such additional shares, assuming conversion or exercise of all Convertible Securities or Options that are convertible or
exercisable (as the case may be) at a price below the Weighted Average Price, multiplied by the Weighted Average Price.

 

    	 

    	 

    

 

(z)          This
Section 4B.5B(iii) shall not apply to the issuance of (i) all shares of Common Stock issued or issuable to employees, directors
or consultants pursuant to any equity compensation plan that is in effect on the date hereof, (ii) all shares of Common Stock issued
or issuable to employees, directors or consultants pursuant to any equity compensation approved by the Corporation’s Board
of Directors, including the Series A Director, (iii) all shares of Common Stock issued or issuable to bona fide leasing companies,
strategic partners, or major lenders, (iv) all shares of Common Stock issued or issuable as the purchase price in a bona fide acquisition
or merger or other strategic transaction with an unaffiliated party (including reasonable fees paid in connection therewith), or
(v) all shares of Common Stock issued upon conversion or exercise of Options or other Convertible Securities outstanding on the
date hereof.

 

(b)          Convertible
Securities.

 

(x)          In
case the Corporation shall issue or sell any securities convertible into Common Stock of the Corporation (“Convertible
Securities”) (including without limitation Additional Assets) after the Original Issue Date, there shall be determined
the price per share for which Common Stock is issuable upon the conversion or exchange thereof, such determination to be made by
dividing (1) the total amount received or receivable by the Corporation as consideration for the issue or sale of such Convertible
Securities, plus the then-current minimum aggregate amount of additional consideration, if any, payable to the Corporation upon
the conversion or exchange thereof, by (2) the maximum number of shares of Common Stock of the Corporation issuable upon the conversion
or exchange of all of such Convertible Securities for such then-current minimum aggregate amount of additional consideration.

 

    	 

    	 

    

 

(y)          If
the price per share so determined shall be less than the applicable Conversion Price, then such issue or sale shall be deemed to
be an issue or sale for cash (as of the date of issue or sale of such Convertible Securities) of such maximum number of shares
of Common Stock at the price per share so determined, provided that, if such Convertible Securities shall by their terms provide
for an increase or increases or decrease or decreases with the passage of time or otherwise, in the amount of additional consideration,
if any, to the Corporation, or in the rate of exchange, upon the conversion or exchange thereof, the adjusted Conversion Price
shall, forthwith upon any such increase or decrease becoming effective, be readjusted to reflect the same, and provided further,
that upon the expiration of such rights of conversion or exchange of such Convertible Securities, if any thereof shall not have
been exercised, the adjusted Conversion Price shall forthwith be readjusted and thereafter be the price which it would have been
had an adjustment been made on the basis that the only shares of Common Stock so issued or sold were those actually issued or sold
upon the conversion or exchange of such Convertible Securities, and that they were issued or sold for the consideration actually
received by the Corporation upon such conversion or exchange, plus the consideration, if any, actually received by the Corporation
for the issue or sale of all of such Convertible Securities.

 

(c)          Rights
and Options.

 

(x)          In
case the Corporation shall grant any rights, warrants or options to subscribe for, purchase or otherwise acquire Common Stock (collectively,
“Options”) after the Original Issue Date, there shall be determined the price per share for which Common Stock
is issuable upon the exercise of such Options, such determination to be made by dividing (1) the total amount, if any, received
or receivable by the Corporation as consideration for the granting of such Options, plus the minimum aggregate amount of additional
consideration payable to the Corporation upon the exercise of such Options, by (2) the maximum number of shares of Common Stock
of the Corporation issuable upon the exercise of such Options for such minimum aggregate amount of additional consideration.

 

    	 

    	 

    

 

(y)          If
the price per share so determined shall be less than the applicable Conversion Price, then the granting of such Options shall be
deemed to be an issue or sale for cash (as of the date of the granting of such Options) of such maximum number of shares of Common
Stock at the price per share so determined, provided that, if such Options shall by their terms provide for an increase or increases
or decrease or decreases, with the passage of time or otherwise, in the amount of additional consideration payable to the Corporation
upon the exercise thereof or in the maximum number of shares of Common Stock issuable, the adjusted Conversion Price shall, forthwith
upon any such increase or decrease becoming effective, be readjusted to reflect the same, and provided, further, that upon the
expiration of such Options, if any thereof shall not have been exercised, the adjusted Conversion Price shall forthwith be readjusted
and thereafter be the price which it would have been had an adjustment been made on the basis that the only shares of Common Stock
so issued or sold were those actually issued or sold upon the exercise of such Options and that they were issued or sold for the
consideration actually received by the Corporation for the granting of all such Options, whether or not exercised.

 

(iv)         Certain
Events. If any event occurs of the type contemplated by the provisions of this Section 4.B5 but not expressly provided for
by such provisions, then the Board of Directors of the Corporation will make an adjustment in the Conversion Price so as to protect
equitably the rights of the Series A Holders and Series B Holders.

 

    	 

    	 

    

 

		(v)	Notices, Regarding Change in Conversion Price or Otherwise.

 

(a)          Immediately
upon any adjustment of the Conversion Price with respect to the Preferred Stock, the Corporation will send written notice thereof
to all affected Preferred Stock Holders.

 

(b)          The
Corporation will send written notice to all Preferred Stock Holders at least twenty (20) days prior to the date on which the Corporation
(x) closes its books or takes a record (1) with respect to any dividend or distribution upon Common Stock, (2) with respect to
any pro rata subscription offer to holders of Common Stock, or (3) for determining rights to vote on or approve any
matter, (y) proposes to take any action on which the Preferred Stock Holders are entitled to vote pursuant to Section 4B.3 or (z)
enters into, agrees to enter into or is subject to a Material Event as described in Section 4B.4B.

 

(c)          All
notices and other communications from the Corporation to a Preferred Stock Holder shall include all material information concerning
any action, proposed action or other matter referred to in the notice or communication and shall be (x) mailed by first class registered
or certified mail, postage prepaid, (y) faxed (with confirmation) or (z) e-mailed (with receipt confirmed), at such address, fax
number or e-mail address (as the case may be) as may have been furnished to the Corporation in writing by such holder, or, until
an address, fax number or e-mail address is so furnished, to and at the address, fax number or e-mail address of the last holder
who has so furnished an address, fax number or e-mail address to the Corporation.

 

C.           Converted
Shares. Any shares of Preferred Stock which are converted pursuant to this Section 4B.5 will be canceled and will not be reissued,
sold or transferred.

 

D.           Series
B Stock. The Series B Stock is subject to exchange pursuant to the Subscription Agreement between the Company and the purchasers
thereof.

 

    	 

    	 

    

 

4B.6.      Miscellaneous.

 

A.           Registration
of Transfer. The Corporation will keep at its principal office a register for the registration of Preferred Stock. Upon the
surrender of any certificate representing Preferred Stock at such place, the Corporation will, at the request of the record holder
of such certificate, execute and deliver (at the Corporation’s expense) a new certificate or certificates in exchange therefor
representing in the aggregate the number of shares represented by the surrendered certificate. Each such new certificate will be
registered in such name and will represent such number of shares as is requested by the holder of the surrendered certificate and
will be substantially identical in form to the surrendered certificate.

 

B.           Replacement.
Upon receipt of evidence reasonably satisfactory to the Corporation (an affidavit of the registered holder will be satisfactory)
of the ownership and the loss, theft, destruction or mutilation of any certificate evidencing one or more shares of Preferred Stock,
and in the case of any such loss, theft or destruction, upon receipt of indemnity reasonably satisfactory to the Corporation, the
Corporation will (at its expense) execute and deliver in lieu of such certificate a new certificate representing the number of
shares represented by such lost, stolen, destroyed or mutilated certificate.

 

C.           Definitions.
For purposes hereof:

 

“Additional
Assets” has the meaning set forth in Section 4B.5B(iii)(a).

 

“Benchmark
Price” shall mean $7.487, subject to equitable adjustment in the event of any change in the Conversion Price pursuant
to Sections 4B.5B(i) or 4B.5B(ii).

 

“Conversion
Price” shall initially mean the purchase price paid to the Company for the issuance of the Series A Stock and the Series
B Stock (taking into account any additional shares of Series B Stock issued to the Series B Holder pursuant to its Subscription
Agreement and averaging the purchase price over all such shares), and shall be subject to adjustment from time to time in accordance
with the provisions of Section 4B.5B.

 

“Conversion
Stock” shall mean the Common Stock or other securities issuable upon conversion of the Preferred Stock as determined
in accordance with the provisions of Section 4.5.

 

    	 

    	 

    

 

“Convertible
Securities” shall have the meaning set forth in Section 4.5B(iii)(b)(x).

 

“Determination
Date” means any particular date chosen for the determination of the Fair Market Value of a share of Common Stock or Additional
Asset.

 

“Fair
Market Value” of a share of Common Stock or Additional Asset as of a Determination Date shall mean: (i), in the case
of Common Stock:

 

(a)          if
the Corporation’s Common Stock is traded on an exchange or is quoted on the National Association of Securities Dealers, Inc.
Automated Quotation (“NASDAQ”) National Market System or the NASDAQ SmallCap Market, then the closing or last sale
price, respectively, reported for the last business day immediately preceding the Determination Date;

 

(b)          if
the Common Stock is not traded on an exchange or on the NASDAQ National Market System or the NASDAQ SmallCap Market but is traded
in the over-the-counter market, then the mean of the closing bid and asked prices reported for the last business day immediately
preceding the Determination Date;

 

(c)          except
as provided in clause (d) below, if the Common Stock is not publicly traded, then as the holder and the Corporation agree or in
the absence of agreement by arbitration in accordance with the rules then standing of the American Arbitration Association, before
a single arbitrator to be chosen by the Corporation (and reasonably acceptable to the Series A Director, or, if no Series A Director
is then serving, the majority in interest of the Series A Holders) from a panel of persons qualified by education and training
to pass on the matter to be decided; and

 

    	 

    	 

    

 

(d)          if
the Determination Date is the date of a liquidation, dissolution or winding up, or any event deemed to be a liquidation, dissolution
or winding up pursuant to the Corporation’s Certificate of Incorporation, as amended, then all amounts to be payable per
share to holders of the Common Stock pursuant to the Certificate of Incorporation in the event of such liquidation, dissolution
or winding up, plus all other amounts to be payable per share in respect of the Common Stock in liquidation under the Certificate
of Incorporation, assuming for the purposes of this clause (d) that all of the shares of Common Stock then issuable upon exercise
of the Warrants are outstanding at the Determination Date;

 

and (ii), in the case of Additional
Assets, the fair market value of such Additional Assets as reasonably determined by the Board of Directors of the Corporation,
without,

 

“2005
Investors” shall mean the investors or their permitted legal successors party to the Unit Subscription Agreement dated
as of January 31, 2005 between the Corporation and the investors party thereto (pursuant to which Series A Stock was issued).

 

“2007
Investors” shall mean the investors or their permitted legal successors party to the placing Letters with Ludgate Investments
Limited dated as of February 16, 2007 (pursuant to which Series A Stock was issued).

 

“Issuance
Price” shall have the meaning set forth in Section 4B.5B(iii)(a).

 

“Junior
Securities” means the Common Stock and any equity securities of any kind (but not including any debt securities convertible
into equity securities) which the Corporation or any Subsidiary at any time issues or is authorized to issue other than the Series
A Stock, unless the terms of such security explicitly state that such security shall be senior to or on a par with the Series A
Stock.

 

“Liquidation
Value” means, with respect to any share of Series A Stock or Series B Stock as of any particular date, the purchase price
paid to the Company for the issuance of the Series A Stock or Series B Stock (taking into account any additional shares of Series
B Stock issued to the Series B Holder pursuant to its Subscription Agreement and averaging the purchase price over all such shares),
subject to adjustment for any and all recapitalizations, reclassifications, stock splits, reverse stock splits, stock dividends,
subdivisions, combinations or similar events .

 

    	 

    	 

    

 

“Material
Event” shall have the meaning set forth in Section 4B.4B.

 

“Options”
shall have the meaning set forth in Section 4B.5B(iii)(c)(x).

 

“Original
Issue Date” means January 31, 2005.

 

“Person”
and “person” means an individual, a partnership, a corporation, a limited liability company, a trust, a joint
venture, an unincorporated organization and a government or any department or agency thereof.

 

“QIPO”
shall mean a firm commitment underwritten public offering of shares of Common Stock at a price per share of Common Stock in excess
of the 2007 Investors’ then-applicable Conversion Price.

 

“Required
Holders” with respect to the Series A Stock or Series B Stock shall mean the owners of a majority of the outstanding
shares of the Series A Stock or Series B Stock, respectively .

 

“Reorganization”
shall have the meaning set forth in Section 4B.4B.

 

“2005
Series A Director” shall have the meaning set forth in Section 4B.3B.

 

“2007
Series A Director” shall have the meaning set forth in Section 4B.3B.

 

“Series
A Holder” shall mean a registered holder of Series A Stock.

 

“Series
B Holder” shall mean a registered holder of Series B Stock.

 

“Series
Issuance Price” means the price paid to the Company for the issuance of the Series A Stock or Series B Stock (taking
into account any additional shares of Series B Stock issued to the Series B Holder pursuant to its Subscription Agreement and averaging
the purchase price over all such shares).

 

“Subsidiary”
means any corporation of which the shares of stock having a majority of the general voting power in electing the board of directors
are, at the time as of which any determination is being made, owned by the Corporation either directly or indirectly through Subsidiaries.

 

    	 

    	 

    

 

“Warrants”
means the Warrants exercisable for the purchase of the Common Stock, issued to the Investors pursuant to the Unit Subscription
Agreement, dated as of January 31, 2005, between the Corporation and the Investors.

 

D.           Amendment
and Waiver. No amendment, modification or waiver will be binding or effective with respect to any provision of this Article
IV adversely affecting the rights of the holders of the Series A Stock without the prior approval of the Required Holders provided
further that in the case of an amendment, modification or waiver with respect to any provision of Section 4B.5B(iii), the Required
Holders shall include a majority in interest of the 2005 Investors.

 

E.           Generally
Accepted Accounting Principles. When any accounting determination or calculation is required to be made, such determination
or calculation (unless otherwise provided) will be made in accordance with generally accepted accounting principles, consistently
applied.

 

F.           Consideration
Other Than Cash. In any case where the consideration received by this Corporation is other than cash, its value will
be deemed its fair market value as determined in good faith by the Board of Directors. Any securities shall be valued as follows:

 

(i)           Securities
not subject to investment letter or other similar restrictions on free marketability covered by (ii) below: (a) if the principal
trading market for such securities is an exchange, the average of the high reported sale prices per share of such securities for
the last five previous trading days in which a sale was reported, as officially reported on any consolidated tape, (b) if the principal
market for the Common Stock is the over-the-counter market, the average of the high reported sale prices per share on such trading
days as set forth by such market or, (c) if such securities are not quoted by such over-the-counter market, the average of the
average of the mean of the bid and asking prices per share on such trading days as set forth in the National Quotation Bureau sheet
listing such securities for such days. Notwithstanding the foregoing, if there is no reported high sale price, as the case may
be, reported on any of the ten trading days preceding the event requiring a determination of fair market value hereunder, then
the fair market value shall be the average of the high bid and asked prices for such days; and if there is no reported high bid
and asked prices, as the case may be, reported on any of the ten trading days preceding the event requiring a determination of
fair market value hereunder, then the fair market value shall be determined in good faith by resolution of the Board of Directors
of the Corporation, based on the best information available to it; provided that in the event of a dispute of the Board of Director’s
determination, the fair market value shall be determined by arbitration in accordance with the rules then standing of the American
Arbitration Association, before a single arbitrator to be chosen by the Corporation from a panel of persons qualified by education
and training to pass on the matter to be decided.

 

    	 

    	 

    

 

(ii)          The
method of valuation of securities subject to investment letter or other restrictions on free marketability (other than restrictions
arising solely by virtue of a shareholder’s status as an affiliate or former affiliate) shall be to make an appropriate discount
from the market value determined as above in clauses (i) (a), (b) or (c) to reflect the approximate fair market value thereof,
as determined in good faith by the Board of Directors of the Corporation.

 

G.           Preemptive
Rights. The Common Stockholders and the Series A Stockholders shall have such preemptive rights as are set forth in those certain
Investor Rights Agreement and Stockholders Agreement, among the Corporation and certain of its stockholders, each dated January
31, 2005, as each may be amended.

 

    	 

    	 

    

 

ARTICLE V

 

Stockholder Action

 

Stockholders of the
Corporation shall take action by (i) meetings held pursuant to this Third Amended and Restated Certificate of Incorporation and
the ByLaws or (ii) written consent in lieu a meeting pursuant to the provisions of Section 228 of the GCL. Meetings of stockholders
may be held within or without the State of Delaware, as the ByLaws may provide. Special meetings of the stockholders, for any purpose
or purposes, may be called by the Board of Directors of the Corporation or by the holders of at least 50% of the outstanding shares
of capital stock of the Corporation. The books of the Corporation may be kept (subject to any provision contained in the GCL) outside
the State of Delaware at such place or places as may be designated from time to time by the Board of Directors or in the ByLaws
of the Corporation.

 

ARTICLE VI

Creditors

 

Whenever a compromise
or arrangement is proposed between the Corporation and its creditors or any class of them and/or between the Corporation and its
stockholders or any class of them, any court of equitable jurisdiction within the State of Delaware may, on the application in
a summary way of the Corporation or of any creditor or stockholder thereof or on the application of any receiver or receivers appointed
for the Corporation under Section 291 of the GCL or on the application of trustees in dissolution or of any receiver or receivers
appointed for the Corporation under Section 279 of the GCL order a meeting of the creditors or class of creditors, and/or of the
stockholders or class of stockholders of the Corporation, as the case may be, to be summoned in such manner as the said court directs.

 

If a majority in number
representing three-fourths in value of the creditors or class of creditors, and/or of the stockholders or class of stockholders
of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of the Corporation as
consequence of such compromise or arrangement, the said compromise or arrangement and the said reorganization shall, if sanctioned
by the court to which the said application has been made, be binding on all the creditors or class of creditors, and/or on all
the stockholders or class of stockholders, of the Corporation, as the case may be, and also on the Corporation.

 

    	 

    	 

    

 

ARTICLE VII

Section 203 of the
GCL

 

The Corporation expressly
elects not to be governed by Section 203 of the GCL.

 

ARTICLE VIII

Management of Business
of the Corporation

 

For the management
of the business and for the conduct of the affairs of the Corporation, and in further definition, limitation and regulation of
the powers of the Corporation and of its directors and of its stockholders or any class thereof, as the case may be, it is further
provided:

 

(a) The management of
the business and the conduct of the affairs of the Corporation shall be vested in the Board of Directors, of which two members
shall be the 2005 Series A Director and the 2007 Series A Director, subject to the limitations set forth in Section 4.3B above.

 

(b) The number of directors
which shall constitute the whole Board of Directors shall be fixed by, or in the manner provided in, the Corporation’s ByLaws,
provided that they do not infringe upon the rights of the Series A Holders under Section 4.3 above. The phrase “whole Board”
and the phrase “total number of directors” shall be deemed to have the same meaning, to wit, the total number of directors
which the Corporation would have if there were no vacancies. No election of directors need be by written ballot.

 

ARTICLE IX

 

ByLaws

 

In furtherance and
not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized to adopt, amend, alter or
repeal the ByLaws of the Corporation. Such power of the Board of Directors shall not divest the stockholders of the power, nor
limit their power to adopt, amend, alter or repeal the ByLaws of the Corporation.

 

    	 

    	 

    

 

ARTICLE X

Limitation of Director
Liability

 

To the fullest extent
permitted by applicable law, the Corporation is authorized to provide indemnification of (and advancement of expenses to) directors,
officers, employees and agents (and any other persons to which Delaware law permits the Corporation to provide indemnification)
through ByLaw provisions, agreements with such agents or other persons, vote of stockholders or disinterested directors or otherwise,
in excess of the indemnification and advancement otherwise permitted by Section 145 of the GCL, subject only to limits created
by applicable Delaware law (statutory or non-statutory).

 

To
the fullest extent permitted by applicable law, the directors of
the Corporation shall not be personally liable to the Corporation or any stockholder for monetary damages for breach of fiduciary
duty as a director, except for any matter in respect of which such director shall be liable under Section 174 of the GCL or any
amendment thereto or shall be liable by reason that, in addition to any and all other requirements for such liability, such director
(1) shall have breached the director's duty or loyalty to the Corporation or its stockholders, (2) shall have acted in a manner
involving intentional misconduct or a knowing violation of law or, in failing to act, shall have acted in a manner involving intentional
misconduct or a knowing violation of law, or (3) shall have derived an improper personal benefit. If the GCL is hereafter amended
to authorize the further elimination or limitation of the liability of a director, the liability of a director of the Corporation
shall be eliminated or limited to the fullest extent permitted by the GCL, as so amended. To the fullest extent permitted by applicable
law, each person who was or is made a party or is threatened to be made a party to or is in any way involved in any threatened,
pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a “proceeding”),
including any appeal therefrom, by reason of the fact that he or she, or a person of whom he or she is the legal representative,
is or was a director or officer of the Corporation or a direct or indirect Subsidiary, or is or was serving at the request of the
Corporation as a director or officer of another entity or enterprise, shall be indemnified and held harmless by the Corporation,
and the Corporation shall advance all expenses incurred by any such person in defense of any such proceeding prior to its final
determination, to the fullest extent authorized by the GCL. In any proceeding against the Corporation to enforce these rights,
such person shall be presumed to be entitled to indemnification and the Corporation shall have the burden of proving that such
person has not met the standards of conduct for permissible indemnification set forth in the GCL. The rights to indemnification
and advancement of expenses conferred by this Article X shall be presumed to have been relied upon by the directors and officers
of the Corporation in serving or continuing to serve the Corporation and shall be enforceable as contract rights. Said rights shall
not be exclusive of any other rights to which those seeking indemnification may otherwise be entitled. The Corporation may, upon
written demand presented by a director or officer of the Corporation or of a direct or indirect Subsidiary, or by a person serving
at the request of the Corporation as a director or officer of another entity or enterprise, enter into contracts to provide such
persons with specified rights to indemnification, which contracts may confer rights and protections to the maximum extent permitted
by the GCL, as amended and in effect from time to time. If a claim under this Article X is not paid in full by the Corporation
within sixty (60) days after a written claim has been received by the Corporation, the claimant may at any time thereafter bring
suit against the Corporation to recover the unpaid amount of the claim and, if successful in whole or in part, the claimant shall
be entitled to be paid also the expenses of prosecuting such claim. It shall be a defense to any such action (other than an action
brought to enforce the right to be advanced expenses incurred in defending any proceeding prior to its final disposition where
the required undertaking, if any, has been tendered to the Corporation) that the claimant has not met the standards of conduct
which make it permissible under the GCL for the Corporation to indemnify the claimant for the amount claimed, but the claimant
shall be presumed to be entitled to indemnification and the Corporation shall have the burden of proving that the claimant has
not met the standards of conduct for permissible indemnification set forth in the GCL.

 

    	 

    	 

    

 

If the GCL is hereafter
amended to permit the Corporation to provide broader indemnification rights than said law permitted the Corporation to provide
prior to such amendment, the indemnification rights conferred by this Article X shall be broadened to the fullest extent permitted
by the GCL, as so amended.

 

IN WITNESS WHEREOF, the undersigned, being
the Chief Executive Officer of the Corporation, hereby certifies that the facts hereinafter stated are truly set forth, and accordingly
executes this Amended and Restated Certificate of Incorporation this __ day of March,
2009.

 

	 	 	 
	 	Dr. Harold Jacob, CEO

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