Document:

Exhibit

Exhibit 4.1

Execution Version

AMENDMENT NO. 3 TO LOAN GUARANTEE AGREEMENT
This Amendment No. 3 to Loan Guarantee Agreement, dated as of July 27, 2017 (this “Agreement”), is between Georgia Power Company, a corporation organized and existing under the laws of the State of Georgia (the “Borrower”), and the U.S. Department of Energy, an agency of the United States of America, acting by and through the Secretary of Energy (or appropriate authorized representative thereof) (“DOE”).
WHEREAS, the Borrower and DOE have entered into that certain Loan Guarantee Agreement, dated as of February 20, 2014 (such agreement, as amended, amended and restated, restated, supplemented or otherwise modified from time to time, the “Loan Guarantee Agreement”); 
WHEREAS, the Borrower and DOE have entered into that certain Amendment No. 1 to Loan Guarantee Agreement, dated as of June 4, 2015;
WHEREAS, the Borrower and DOE have entered into that certain Amendment No. 2 to Loan Guarantee Agreement, dated as of March 1, 2016; 
WHEREAS, pursuant to that certain consent and waiver dated as of July 27, 2017, DOE consented to the following agreements becoming effective upon condition, among other things, that this Agreement be entered into:  (i) that certain Amended and Restated Services Agreement, dated as of July 20, 2017 (such agreement, as amended, amended and restated, restated, supplemented or otherwise modified from time to time, the “Services Agreement”), between the Borrower (for itself and as agent for the other Owners) and Westinghouse Electric Company LLC (“Westinghouse”) and WECTEC Global Project Services Inc. (“WECTEC” and, together with Westinghouse, the “Service Provider”); (ii) that certain IP License, dated as of July 20, 2017 (such agreement, as amended, amended and restated, restated, supplemented or otherwise modified from time to time, “IP License”), by and between the Borrower (for itself and as agent for the other Owners) and the Service Provider; and (iii) that certain Facility IP License in the Event of Triggering Event, dated as of July 20, 2017 (such agreement, as amended, amended and restated, restated, supplemented or otherwise modified from time to time, “Triggering Event IP License”), by and between the Borrower (for itself and as agent for the other Owners) and the Service Provider; 
WHEREAS, pursuant to Section 7(i) of the IP License, the IP License will replace and supersede the Software License (as defined in the Loan Guarantee Agreement); 
WHEREAS, the Borrower and the other Owners (i) are in the process of completing the Completion Assessment (as defined below), (ii) are entering into the Services Agreement, the IP License and the Triggering Event IP License, among other things, to replace the intellectual property rights previously provided by the EPC Contract and the Software License, and (iii) intend to enter into Replacement EPC Arrangements (as defined below) if they decide to continue construction of the Project after finalization of the Completion Assessment; and  

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WHEREAS, the Borrower and DOE desire to amend the Loan Guarantee Agreement to clarify the operation of the Loan Guarantee Agreement during the Interim Period (as defined below), as provided below.
NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:
		
	Section 1.
	Definitions.

Capitalized terms used and not defined in this Agreement have the meanings provided in the Loan Guarantee Agreement.  Unless otherwise indicated, all section references are to the Loan Guarantee Agreement.
		
	Section 2.
	Amendments.  

a.    The Borrower and the DOE by their respective signatures below hereby agree that the following definitions shall be added to Exhibit A of the Loan Guarantee Agreement:
“Amendment No. 3” shall mean Amendment No. 3 to Loan Guarantee Agreement, dated as of July 27, 2017, between the Borrower and DOE.
“Completion Assessment”  The schedule and cost-to-complete assessment, as well as the cancellation cost assessment being prepared by the Borrower and the other Owners as a result of the bankruptcy of the EPC Contractor.
“Facility Licenses”  The IP License and the Triggering Event IP License.
“Interim Period”  As defined in Section 10.24.
“IP License”  The IP License, dated as of July 20, 2017, by between the Borrower acting for itself and as Owners’ Agent and the Service Provider. 
“Replacement EPC Arrangements”  The Services Agreement, the IP License, the Triggering Event IP License and one or more construction contracts with the construction contractor(s) that will be primarily responsible for construction of the Project to be entered into in connection with the Completion Assessment.
“Replacement EPC Arrangement Monthly Reports” As defined in Section 6.1(a)(ii).
“Service Provider”  As the context shall require, (a) Westinghouse Electric Company LLC and WECTEC Global Project Services Inc., collectively or (b) either such Person, individually.  

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“Services Agreement”  The Amended and Restated Services Agreement, dated as of July 20, 2017, by between the Borrower acting for itself and as Owners’ Agent and the Service Provider.  
“Service Provider Monthly Reports”  As defined in Section 6.1(a)(ii).
“Settlement Proceeds” As defined in Section 3.3.3(g)(i).  
“Toshiba Direct Agreement”  The Consent to Assignment, dated July 27, 2017, by and between the Borrower, Toshiba Corporation and the Collateral Agent.
“Toshiba Settlement Agreement”  The Settlement Agreement, dated as of June 9, 2017, by and between the Owners and Toshiba Corporation.
“Triggering Event IP License”  The Facility IP License in the Event of Triggering Event, dated as of July 20, 2017, by and between the Borrower acting for itself and as Owners’ Agent and the Service Provider. 
 “Westinghouse Direct Agreement”  The Consent to Assignment, dated as of July 27, 2017, among the Borrower, the Service Provider and the Collateral Agent.
b.    The Borrower and DOE by their respective signatures below hereby agree that from and after the effective date of the Services Agreement, (i) each of the Services Agreement, the IP License, the Triggering Event IP License and the Toshiba Settlement Agreement shall be deemed a “Principal Project Document” and a “Project Document,” (ii) each of the Westinghouse Direct Agreement and the Toshiba Direct Agreement shall be deemed a “Direct Agreement”, a “Loan Document” and a “Transaction Document”; (iii) the Software License shall no longer be considered a “Principal Project Document” or a “Project Document”; (iv) the EPC Contract shall no longer be considered a “Construction Contract”, a “Principal Project Document”, a “Project Document” (except with respect to the definition of Westinghouse Letter Agreement under the Loan Guarantee Agreement) or a “Transaction Document” (except with respect to Section 5.8(a) and Section 10.10 of the Loan Guarantee Agreement); and (v) the Consent to Assignment, dated as of February 20, 2014, among the Borrower, the EPC Contractor and the Collateral Agent shall no longer be considered a “Direct Agreement”, a “Loan Document” or a “Transaction Document.” 
c.    The Borrower and DOE by their respective signatures below hereby agree that from and after the effective date of the Services Agreement, Section 6.1(a)(ii) of the Loan Guarantee Agreement shall be amended in its entirety as follows:
“an unredacted copy of the monthly project status report delivered to the Borrower pursuant to Section 5.5(a) (Monthly Status Reports) of the Services Agreement with respect to such month (the “Service Provider Monthly Reports”) and any other monthly progress reports delivered to the Borrower during the Interim Period pursuant to any other Replacement EPC Arrangement (together with the Service Provider Monthly 

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Reports, the “Replacement EPC Arrangement Monthly Reports”), which reports shall be provided via the Restricted Data Site;”
d.    The Borrower and DOE by their respective signatures below hereby agree that from and after the effective date of the Services Agreement, the following shall be added to Section 3.3.3 of the Loan Guarantee Agreement:  
“(g) Payments under EPC Contract, Toshiba Guaranty, and Toshiba Settlement Agreement. (i) Except as provided in subsection (ii), at any time the Borrower receives any payment (“Settlement Proceeds”) from the EPC Contractor in connection with the EPC Contract or Toshiba Corporation under the Toshiba Guarantee or Toshiba Settlement Agreement, the Borrower shall be required to make a mandatory prepayment of Advances outstanding pursuant to the FFB Credit Facility Documents in an aggregate amount equal to the lesser of (A) the amount of such payment of Settlement Proceeds received by the Borrower (in its capacity as an Owner) and (B) the aggregate amount of all Advances outstanding pursuant to the FFB Credit Facility Documents as of the date of receipt of such payment of Settlement Proceeds minus seventy percent (70%) of (i) the total Eligible Project Costs the Borrower has incurred and reasonably expects to incur to complete the Project in respect of the Borrower’s Undivided Interest minus (ii) the aggregate amount of Settlement Proceeds received by the Borrower (in its capacity as an Owner) as of the date of receipt of such payment.  Each mandatory prepayment under this clause (g)(i) shall be made within 14 days of receipt of such payment of Settlement Proceeds.  In the event any computation required in the first sentence of this clause (g)(i) results in an amount of zero or less, no mandatory prepayment shall be required in connection with the applicable receipt of payment of Settlement Proceeds.  At any time prior to the Borrower’s delivery of the Construction Budget contemplated by Section 10.24(a), any determination of Eligible Project Costs the Borrower reasonably expects to incur shall be made based on the Borrower’s reasonable expectations at such time (without reduction for any Settlement Proceeds received).  At any time from and after the Borrower’s delivery of the Construction Budget contemplated by Section 10.24(a), any determination of the amount of Eligible Project Costs the Borrower reasonably expects to incur shall be made based on the then-current Construction Budget (without reduction for any Settlement Proceeds received).
(ii) In the event DOE issues a Mandatory Prepayment Notice and the Borrower is not continuing with construction of the Project, the Borrower shall be required to make a mandatory prepayment of Advances outstanding pursuant to the FFB Credit Facility Documents in an aggregate amount equal to the lesser of (A) the aggregate amount of Settlement Proceeds received by the Borrower (in its capacity as an Owner) as of the date of delivery of such Mandatory Prepayment Notice and (B) the aggregate amount of all Advances outstanding pursuant to the FFB Credit Facility Documents as of the date of delivery of such Mandatory Prepayment Notice minus seventy percent (70%) of (i) the aggregate amount of Eligible Project Costs the Borrower has incurred in respect of the Borrower’s Undivided Interest as of the date of delivery of such Mandatory Prepayment 

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Notice minus (ii) the aggregate amount of Settlement Proceeds received by the Borrower (in its capacity as an Owner) as of the date of delivery of such Mandatory Prepayment Notice.  For any payment of Settlement Proceeds received by the Borrower subsequent to the date of such Mandatory Prepayment Notice, subsection (i) shall not apply and the Borrower shall make a mandatory prepayment of Advances outstanding pursuant to the FFB Credit Facility Documents in an aggregate amount equal to the lesser of (A) the amount of such payment of Settlement Proceeds received by the Borrower (in its capacity as an Owner) and (B) the aggregate amount of all Advances outstanding pursuant to the FFB Credit Facility Documents as of the date of the receipt of such payment of Settlement Proceeds minus seventy percent (70%) of (i) the aggregate amount of Eligible Project Costs the Borrower has incurred in respect of the Borrower’s Undivided Interest as of such date minus (ii) the aggregate amount of Settlement Proceeds received by the Borrower (in its capacity as an Owner) as of such date.  The mandatory prepayments under this clause (g)(ii) shall be made within 30 days of the date of delivery of the Mandatory Prepayment Notice or, in the case of Settlement Proceeds received subsequent to the date of such Mandatory Prepayment Notice, within 30 days of receipt of Settlement Proceeds.  In connection with each mandatory prepayment under this clause (ii), the Level Principal Amount payable on each then remaining Quarterly Payment Date shall be reduced by an amount equal to the amount of principal prepaid through such mandatory prepayment, divided by the number of remaining Quarterly Payment Dates.  In the event any computation required in the first or second sentence of this clause (g)(ii) results in an amount of zero or less, no mandatory prepayment shall be required in connection with the applicable Mandatory Prepayment Event or receipt of Settlement Proceeds.”
e.    The Borrower and DOE by their respective signatures below hereby agree that from and after the effective date of the Services Agreement, the following shall be added to the end of Section 3.3.3(e) of the Loan Guarantee Agreement:
“In the event the Borrower receives a Mandatory Prepayment Notice (other than a Mandatory Prepayment Notice relating to a Mandatory Prepayment Event  that occurs pursuant to Section 10.24(b)) on a date that is less than eight (8) Business Days prior to the next Quarterly Payment Date, the initial level principal payment shall occur on the eighth (8th) Business Day following the Borrower’s receipt of the Mandatory Prepayment Notice rather than the next Quarterly Payment Date following the Borrower’s receipt of the Mandatory Prepayment Notice.  In the event the Borrower receives a Mandatory Prepayment Notice relating to a Mandatory Prepayment Event that occurs pursuant to Section 10.24(b) and the next Quarterly Payment Date is less than thirty (30) days after the occurrence of such Mandatory Prepayment Event, the initial level principal payment shall occur on the later of (i) the thirtieth (30th) day following the occurrence of the Mandatory Prepayment Event or (ii) the eighth (8th) Business Day following the Borrower’s receipt of the Mandatory Prepayment Notice.  The date of any mandatory prepayment made in accordance with the two preceding sentences shall be deemed to be a Quarterly Payment Date for the purposes of Section 3.3.3(f).”    

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f.    The Borrower and DOE by their respective signatures below hereby agree that from and after the effective date of the Services Agreement, Sections 6.1(l)(iii) and 6.1 (l)(iv) of the Loan Guarantee Agreement shall be amended (i) to replace “EPC Contract” with “the Services Agreement, the IP License, the Triggering Event IP License, the Toshiba Settlement Agreement” and (ii) to remove the reference to “the Software License”.
g.    The Borrower and DOE by their respective signatures below hereby agree that from and after the effective date of the Services Agreement, (i) Sections 6.1(a), 6.1(g), 6.1(m), 6.1(p)(i) of the Loan Guarantee Agreement shall be amended to replace all references to “EPC Contractor” with “Service Provider”; and (ii) Sections 6.1(a), 6.1(p)(i) and 6.1(p)(iii)(2) of the Loan Guarantee Agreement shall be amended to replace “EPC Contractor Monthly Report” with “Replacement EPC Arrangement Monthly Reports.” 
h.    The Borrower and DOE by their respective signatures below hereby agree that from and after the effective date of the Services Agreement, Section 6.11(d)(ii) of the Loan Guarantee Agreement shall be amended in its entirety as follows:
“If any Borrower Entity, Borrower Entity Controlling Person or Southern Company or any of their respective Principal Persons becomes a Prohibited Person, or, any Owner, the Service Provider or Toshiba Corporation or any of their respective ultimate parent companies, or the successors or assigns of any such Person becomes (whether through a transfer or otherwise) a Prohibited Person identified in clause (i) or (ii) of the definition of Prohibited Person, the Borrower shall, within thirty (30) days of obtaining Knowledge that such Person has become a Prohibited Person, engage and continue to engage in good faith discussions with DOE regarding (A) the removal or replacement of such Person or, (B) if such removal or replacement is not reasonably feasible, the implementation of other mitigation measures.” 
i.    The Borrower and DOE by their respective signatures below hereby agree that from and after the effective date of the Services Agreement, Section 6.11(j) of the Loan Guarantee Agreement shall be amended in its entirety as follows:
“OFAC.  If any Borrower Entity, Borrower Entity Controlling Person or Southern Company or any of their respective Principal Persons, employees or agents acting in such capacities, or, any other Owner, the Service Provider or Toshiba Corporation or any of their respective ultimate parent companies, or the successors or assigns of any such Person, fails to comply with any or all applicable orders, rules and regulations of OFAC in obtaining any consents, licenses, approvals, authorizations, rights, or privileges with respect to the Project or, otherwise, in conducting activities in connection with the Project, the Borrower shall, within thirty (30) days of obtaining Knowledge that such Person has so failed to comply, engage and continue to engage in good faith discussions with DOE regarding (i) the removal or replacement of such Person or, (ii) if such 

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removal or replacement is not reasonably feasible, the implementation of other mitigation measures.”
j.    The Borrower and DOE by their respective signatures below hereby agree that from and after the effective date of the Services Agreement, Section 6.11(k) of the Loan Guarantee Agreement shall be amended in its entirety as follows:
“Anti-Terrorism Order.  If any Borrower Entity, Borrower Entity Controlling Person or Southern Company or any of their respective Principal Persons, or, any other Owner, the Service Provider or Toshiba Corporation or any of their respective ultimate parent companies, or the successors or assigns of any such Person, fails to comply with the Anti-Terrorism Order, the Borrower shall, within thirty (30) days of obtaining Knowledge that such Person has so failed to comply, engage and continue to engage in good faith discussions with DOE regarding (i) the removal or replacement of such Person or, (ii) if such removal or replacement is not reasonably feasible, the implementation of other mitigation measures.”
k.    The Borrower and DOE by their respective signatures below hereby agree that from and after the effective date of the Services Agreement, the following shall be added to Article 7 of the Loan Guarantee Agreement:  
“7.12    Services Agreement and Facility Licenses.
(a)Subject to paragraph (b), the Borrower shall not directly or indirectly agree to any amendment, modification, replacement, supplement, consent or waiver or waive any right to consent to any amendment, modification, replacement, supplement or waiver of any right with respect to, or assign or agree to the assignment of any party’s obligations under:
		
	(i)
	any of the following provisions of the Services Agreement:

		
	a.
	Section 4.6 (Subcontractors) of the Services Agreement, but only to the extent that such amendment, modification, replacement, supplement, consent or waiver could reasonably be expected to adversely impact (A) any Intellectual Property Rights or rights in Technology provided or to be provided pursuant to the Services Agreement or Facility Licenses or (B) the assignability of (or obligation of the Service Provider, or any other party to any such subcontract, to assign, or procure or permit the assignability of) any such rights in whole or in part;

		
	b.
	Article 6 (IP Deliverables) of the Services Agreement;

		
	c.
	Section 16.4 (Intellectual Property Infringement) of the Services Agreement; 

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	d.
	Section 17.5 (Springing License Exclusive Remedy) of the Services Agreement; 

		
	e.
	Section 21 (Assignment) of the Services Agreement;

		
	f.
	Exhibit C (Rates and Invoicing) of the Services Agreement; but only to the extent that such amendment, modification, replacement, supplement, consent or waiver could reasonably be expected to affect the pricing, charge, fee, or licensing or royalty charge associated with the development of, access to, delivery or Owners’ use of the Facility IP.

		
	(ii)
	The Facility Licenses

		
	(iii)
	The Settlement Agreement, dated as of June 9, 2017, by and among the Owners and Toshiba Corporation.

(b)Subject to Section 10.24, nothing in this Agreement shall prohibit the Borrower from reducing the scope of services provided by the Service Provider pursuant to Section 4.3(b) of the Services Agreement; provided that the Borrower shall provide the Guarantor with notice of any such reduction in scope of work within two Business Days after providing notice thereof to the Service Provider in accordance with the terms of Section 4.3(b) of the Services Agreement.”
l.    The Borrower and DOE by their respective signatures below hereby agree that from and after the effective date of the Services Agreement, the following shall be added to Article 10 of the Loan Guarantee Agreement:  
“10.24    Interim Agreement Prior to Completion Assessment and Replacement EPC Arrangements.
(a)Notwithstanding anything in this Agreement to the contrary, from the effective date of Amendment No. 3 to this Agreement, until such time as (i) the Completion Assessment has been finalized, the Borrower has provided DOE with an updated Project Milestone Schedule, Summary Project Milestone Schedule, Construction Budget and Borrower Base Case Projections, and the Owners have made a determination to continue with construction of the Project, (ii) the Replacement EPC Arrangements have been approved by DOE, (iii) the Borrower shall have provided DOE with access to such information as DOE shall have reasonably requested in connection with completing its review of the updated Project Milestone Schedule, Summary Project Milestone Schedule, Construction Budget and Borrower Base Case Projections, and (iv) an amendment to this Agreement has been entered into, in form and substance satisfactory to DOE, to reflect, among other things, the Replacement EPC Arrangements (the period from the effective date of Amendment No. 3 to this Agreement until the achievement of subsections (i) through (iv) hereof being the “Interim Period”), no Advances 

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will be permitted under Article 4 of this Agreement and the Borrower shall not request any Advances.
(b)Notwithstanding anything in this Agreement to the contrary, during the Interim Period, subsection (ix) of the definition of “Mandatory Prepayment Event” shall not apply and shall be replaced with the following:  “(ix)(A)(1) the Borrower decides not to continue with construction of the Project, or (2) the Services Agreement is terminated or rejected in a bankruptcy proceeding and either no Triggering Event (as defined in the Triggering Event IP License) has occurred or the Triggering Event IP License is terminated in connection therewith in accordance with the terms of the Triggering Event IP License or (B) the Borrower does not complete the Completion Assessment and enter into the Replacement EPC Arrangements by December 31, 2017.
For the avoidance of doubt, any termination of the Services Agreement by the Borrower during the Interim Period or otherwise in connection with a decision by the Borrower to not to continue construction of the Project as a result of the Completion Assessment shall not constitute a breach of covenant or a Potential Default or Event of Default, but shall constitute a Mandatory Prepayment Event to the extent provided in Section 10.24(b).
In addition, for the avoidance of doubt, the Borrower’s filing of a recommendation with the Georgia PSC to not continue with construction of the Project in connection with the Completion Assessment shall not constitute a Mandatory Prepayment Event pursuant to clause (ix)(A)(1) and in such a case a Mandatory Prepayment Event will not be triggered pursuant to clause (ix)(A)(1) until the Board of Directors of the Borrower makes a decision to not continue with construction of the Project.” 
h.    The Borrower and DOE by their respective signatures below hereby agree that from and after the date of this Agreement the first parenthetical in Section 8.1(b) of the Loan Guarantee shall be revised to provide as follows:  “(other than the representations and warranties in Section 5.15 or Section 3.d of Amendment No. 3, the exclusive remedy with respect to a breach of which shall be as provided in Section 3.3.3)”.
      i.    The Borrower and DOE by their respective signatures below hereby agree that from and after the date of this Agreement subsection (viii) of the definition of “Mandatory Prepayment Event” shall be replaced with the following:  
“(viii)    any representation and warranty in Section 5.15 or Section 3.d of Amendment No. 3 made or deemed to be made by the Borrower shall be found to have been untrue in any material respect when made or deemed to have been made, unless such materially untrue representation and warranty is capable of being remedied, and such materially untrue representation and warranty is remedied to DOE’s satisfaction within ninety (90) days (or such longer period acceptable to DOE) following the earlier of (i) the date of notice thereof from DOE to the Borrower or (ii) the date that the Borrower obtains Knowledge of such material untruth; provided, that no Mandatory Prepayment Event under this clause (viii) shall occur so long as the Borrower or the 

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Operator (as applicable) is diligently pursuing a cure for such materially untrue representation and warranty pursuant to its rights under the Project Documents or the Borrower acquires the applicable Technology and Intellectual Property Rights from the holder thereof; or”.   
Section 3.    Representations and Warranties of Borrower.  
Borrower by its signature below hereby represents and warrants, as of the date hereof, that: 
a.    it is a corporation, duly incorporated, validly existing and in good standing under the laws of the State of Georgia, and has all requisite corporate power and authority to execute, deliver, perform and observe the terms and conditions of this Agreement;
b.    this Agreement is a legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms, subject to Bankruptcy Laws and general principles of equity, regardless of whether enforcement is considered in a proceeding at law or in equity; and
c.    the Borrower has duly authorized, executed and delivered this Agreement, and neither its execution and delivery hereof nor its consummation of the transactions contemplated hereby nor its compliance with the terms hereof (i) contravenes its Organizational Documents, (ii) contravenes any Governmental Rules where such contravention would reasonably be expected to have a Material Adverse Effect or a material adverse effect on the ability of the Project to be completed, (iii) contravenes or results in any breach or constitutes any default under any Governmental Judgment, where such contravention, breach or default would reasonably be expected to have a Material Adverse Effect or material adverse effect on the ability of the Project to be completed, (iv) contravenes or results in any breach or constitutes any default under any agreement or instrument to which it is a party or by which it or any of its revenues, properties or assets may be bound, except where such contravention, breach or default would not reasonably be expected to have a Material Adverse Effect or a material adverse effect on the ability of the Project to be completed, (v) results in or requires the creation of any Lien upon any of its revenues, properties or assets, or (vi) requires the consent or approval of any Person which has not been obtained. 
d.    Pursuant to the Services Agreement, the IP License, the Triggering Event IP License, the Westinghouse Fuel Assembly Agreement, the Southern Nuclear Direct Agreement, the Westinghouse License Agreement, the Beacon Software Agreement (if any), any replacement agreement for any of the foregoing and any Additional Project Document for the supply of fuel assemblies and/or related required software for the Project (collectively, the “IP Agreements”), the Borrower possesses, or will possess in due course, in accordance with the terms of the IP Agreements, an IP Interest; except where the Borrower’s failure to own or hold all or any part of such IP Interest (x) results from termination of the relevant IP Agreement after the date hereof and prior to delivery of all of the Technology and Intellectual Property Rights thereunder, or (y) could not reasonably be expected to result in a material adverse effect on the 

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ability of the Project to be completed or operated, or to be conveyed or disposed of.  The Borrower does not have Knowledge of any Technology or Intellectual Property Rights necessary to construct, complete, operate, use and maintain the Project through the Maturity Date that have not been granted or conferred, or that will not be granted or conferred in due course, in accordance with the terms of the IP Agreements, except for Technology and Intellectual Property Rights (x) to the extent not granted or conferred as a result of a termination of the relevant IP Agreement after the date hereof and prior to delivery of such Technology and Intellectual Property Rights thereunder, or (y) which if not so granted or conferred could not reasonably be expected to result in a material adverse effect on the ability of the Project to be completed or operated, or to be conveyed or disposed of.
Section 4.    Miscellaneous.
a.    This Agreement is a Loan Document.  The Loan Guarantee Agreement, as amended by this Agreement, is and shall continue to be in full force and effect and is hereby in all respects ratified.
b.    This Agreement and the rights and obligations of the parties hereunder shall be governed by, and construed and interpreted in accordance with, the Federal law of the United States of America. To the extent that Federal law does not specify the appropriate rule of decision for a particular matter at issue, it is the intention and agreement of the parties hereto that the law of the State of New York (without giving effect to its conflict of laws principles (except Section 5-1401 of the New York General Obligations Law)) shall be adopted as the governing Federal rule of decision.
c.    This Agreement may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all of which counterparts together shall constitute but one and the same instrument.
d.    Delivery of an executed counterpart of a signature page of this Agreement by telecopy or portable document format (“PDF”) shall be effective as delivery of a manually executed counterpart of this Agreement.
[Remainder of page intentionally blank.  Signature pages follow.]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by their respective duly authorized officers or representatives as of the day and year first above written.

	
			
	 
	U.S. DEPARTMENT OF ENERGY, 
as Guarantor 

	 
	 
	 

	 
	By:
	/s/Robert C. Marcum

	 
	 
	Name:  Robert C. Marcum

	 
	 
	Title:  Director, Portfolio Management Division

[Amendment No. 3 to Loan Guarantee Agreement - Signature Page]
   

	
			
	 
	GEORGIA POWER COMPANY, 
as Borrower

	 
	 
	 

	 
	By:
	/s/Meredith M. Lackey

	 
	Name:  Meredith M. Lackey

	 
	Title:  Senior Vice President, General Counsel & Corporate Secretary

[Amendment No. 3 to Loan Guarantee Agreement - Signature Page]Exhibit 10.17

 

SECURITIES
PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of July [__, 2017, between Rosetta Genomics Ltd., an Israeli company
(the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors
and assigns, a “Purchaser” and collectively the “Purchasers”).

 

WHEREAS, subject to the
terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act of
1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser, and each Purchaser,
severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

NOW, THEREFORE, IN CONSIDERATION
of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of
which are hereby acknowledged, the Company and each Purchaser agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1         Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms
have the meanings set forth in this Section 1.1:

 

“Acquiring Person”
shall have the meaning ascribed to such term in Section 4.5.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York or the State of Israel are authorized or required by law or other
governmental action to close.

 

“Class A Units”
means the units consisting of one (1) Ordinary Share and one (1) Series A Warrant to purchase one (1) Ordinary Share.

 

“Class
B Units” means the units consisting of one (1) Series B Warrant and one (1) Series A Warrant to purchase one (1) Ordinary
Share. The purchase price per Class B Unit shall be the Per Unit Purchase Price minus $0.01.

 

“Closings”
means the First Closing and the Second Closing.

 

    	 	1	 

     

    

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii)
the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later than
the third Trading Day following the date hereof.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Company
Counsel” means Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., with offices located at 666 Third Avenue, New York,
NY 10017.

 

“Debentures”
means those certain Convertible Debenture due November 29, 2046 or February 23, 2047 and issued by the Company to certain of the
Purchasers.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(s).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exempt
Issuance” means the issuance of (a) Ordinary Shares or options to employees, officers, advisors or consultants to the
Company or any Subsidiary, or directors of the Company pursuant to any share or option plan duly adopted for such purpose, by a
majority of the non-employee members of the Board of Directors or a majority of the members of a committee of non-employee directors
established for such purpose for services rendered to the Company (provided issuances to consultants shall not exceed 100,000 Ordinary
Shares or Ordinary Share Equivalents in any 12-month period), (b) securities upon the exercise or exchange of or conversion of
any Securities issued hereunder and/or other securities exercisable or exchangeable for or convertible into Ordinary Shares issued
and outstanding on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement
to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities
(other than in connection with share splits or combinations) or to extend the term of such securities, (c) securities issued pursuant
to acquisitions or strategic or business transactions approved by a majority of the disinterested directors of the Company, provided
that any such issuance shall only be to a Person (or to the equityholders of a Person) which is, itself or through its subsidiaries,
an operating company or an owner of an asset in a business synergistic with the business of the Company and shall provide to the
Company additional benefits in addition to the investment of funds, but shall not include a transaction in which the Company is
issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities,
(d) securities issued pursuant to a stock split, stock dividend or any similar recapitalization, and (e) up to $10.8 million principal
amount of secured convertible notes and warrants having terms no less favorable to the Company than set forth on Schedule 1.1(a).

 

    	 	2	 

     

    

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“FDA”
shall have the meaning ascribed to such term in Section 3.1(hh).

 

“FDCA”
shall have the meaning ascribed to such term in Section 3.1(hh).

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(aa).

 

“Initial
Exercise Date” means the date that the Company publicly announces through the filing of a Report on Form 6-K that the
Company has received Shareholder Approval and the amendment to the Company’s Articles of Association has become effective.

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(p).

 

“IP Counsel” means
Polsinelli PC, with offices located at 150 N. Riverside Plaza, Suite 3000, Chicago, IL 60606.

 

“Israeli
Companies Law” means the Israeli Companies Law, 5759-1999, as amended, and the regulations promulgated thereunder.

 

“Israeli
Company Counsel” means Amar Reiter Jeanne Shochatovitch, Lawyers, with offices located at 30 Sheshet Ha'yamimi Road,
Bnei Brak 5120261, Israel.

 

“Israeli
Securities Law” means the Israeli Securities Law, 5728-1968, as amended, and the regulations promulgated thereunder.

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(n).

 

“Ordinary
Share(s)” means the ordinary shares of the Company, par value NIS 7.2 per share, and any other class of securities into
which such securities may hereafter be reclassified or changed.

 

“Ordinary
Share Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Ordinary Shares, including, without limitation, any debt, preferred share, right, option, warrant or other
instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to
receive, Ordinary Shares.

 

    	 	3	 

     

    

 

“Participation
Maximum” shall have the meaning ascribed to such term in Section 4.12(a).

 

“Per
Unit Purchase Price” equals $[__, subject to adjustment for reverse and forward share splits, share dividends, share
combinations and other similar transactions of the Ordinary Shares that occur after the date of this Agreement.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint share company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Pharmaceutical
Product” shall have the meaning ascribed to such term in Section 3.1(hh).

 

“Placement
Agent” means Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC.

 

“Placement
Agent’s Counsel” means Zysman, Aharoni, Gayer and Sullivan & Worcester LLP, with offices located at 1633 Broadway,
New York, New York 10019.

 

“Preliminary
Prospectus” means the preliminary prospectus dated July [_ , 2017.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Pro
Rata Portion” shall have the meaning ascribed to such term in Section 4.12(e).

 

“Product”
shall have the meaning ascribed to such term in Section 3.1(hh).

 

“Prospectus”
means the final prospectus filed for the Registration Statement.

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.8.

 

“Registration
Statement” means the effective registration statement on Form F-1 filed with Commission (File No. 333-217765) which registers
the sale of the Shares, the Warrants and the Warrant Shares.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

    	 	4	 

     

    

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities”
means the Shares, the Warrants and the Warrant Shares.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Series
A Warrants” means, collectively, the purchase warrants delivered to the Purchasers at the applicable Closing in accordance
with Section 2.2(a) hereof, which Warrants shall be exercisable from the Initial Exercise Date and have a term of exercise equal
to five years from the Initial Exercise Date, in the form of Exhibit A attached hereto.

 

“Series
B Warrants” means, collectively, the pre-funded purchase warrants delivered to the Purchasers at the applicable Closing
in accordance with Section 2.2(a) hereof, which warrants shall be exercisable immediately, in the form of Exhibit B attached
hereto.

 

“Shares”
means the Ordinary Shares issued or issuable to each Purchaser pursuant to this Agreement.

 

“Shareholder
Approval” means the approval of the Company’s shareholders to amend the Company’s Articles of Association
to increase the number of authorized Ordinary Shares from 7,500,000 to 25,000,000.

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall
not be deemed to include the location and/or reservation of borrowable Ordinary Shares). 

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for the Class A Units and Class B Units, as applicable,
purchased hereunder as specified below such Purchaser’s name on the signature page of this Agreement and next to the heading
“Subscription Amount,” in United States dollars and in immediately available funds and/or the surrender of Debentures.

 

“Subsequent
Financing” shall have the meaning ascribed to such term in Section 4.12(a).

 

“Subsequent
Financing Notice” shall have the meaning ascribed to such term in Section 4.12(b).

 

    	 	5	 

     

    

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(b), and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Ordinary Shares are listed or quoted for trading
on the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Warrants and any other documents or agreements executed in connection with the transactions
contemplated hereunder.

 

“Transfer
Agent” means American Stock Transfer and Trust Company, LLC, the current transfer agent of the Company, with a mailing
address of 6201 15th Avenue, Brooklyn, New York 11219 and an email address of dpadilla@amstock.com, and any successor
transfer agent of the Company.

 

“Variable
Rate Transaction” shall have the meaning ascribed to such term in Section 4.13(b).

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Ordinary Share is then
listed or quoted on a Trading Market, the daily volume weighted average price of an Ordinary Share for such date (or the nearest
preceding date) on the Trading Market on which an Ordinary Share is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the OTCQB is not a Trading Market,
the volume weighted average price of an Ordinary Share for such date (or the nearest preceding date) on the OTCQB, (c) if Ordinary
Shares are not then listed or quoted for trading on the OTCQB and if prices for Ordinary Shares are then reported in the “Pink
Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting
prices), the most recent bid price per share of an Ordinary Share so reported, or (d) in all other cases, the fair market value
of an Ordinary Share as determined by an independent appraiser selected in good faith by the Purchasers of a majority in interest
of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the
Company.

 

“Warrants”
means, collectively, Series A Warrants and Series B Warrants.

 

“Warrant
Shares” means the Ordinary Shares issuable upon exercise of the Warrants.

 

    	 	6	 

     

    

 

ARTICLE II.

PURCHASE AND SALE

 

2.1         Closings.

 

(a)          First Closing. On the First Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees
to sell, and the Purchasers, severally and not jointly, agree to purchase, up to an aggregate of up to $[___ million of Class A
Units or Class B Units as calculated pursuant to Section 2.2(a). Notwithstanding anything herein to the contrary, to the extent
that a Purchaser determines, in its sole discretion, that such Purchaser’s Subscription Amount (together with such Purchaser’s
Affiliates and any Person acting as a group together with such Purchaser or any of such Purchaser’s Affiliates) would cause
such Purchaser’s beneficial ownership of the Ordinary Shares to exceed 4.99% (or, at the election of the Purchaser, 9.99%)
of the outstanding Ordinary Shares, such Purchaser may elect to purchase Class B Units in lieu of Class A Units as determined pursuant
to Section 2.2(a); provided, however, that, in the event that a Purchaser’s Subscription Amount (together with such Purchaser’s
Affiliates and any Person acting as a group together with such Purchaser or any of such Purchaser’s Affiliates) would cause
such Purchaser’s beneficial ownership of the Ordinary Shares to exceed 19.99% of the outstanding Ordinary Shares, in lieu
of Ordinary Shares in excess of such amount, such Purchaser shall be issued Class B Units as determined pursuant to Section 2.2(a).
Each Purchaser’s Subscription Amount as set forth on the signature page hereto executed by such Purchaser shall be made available
for “Delivery Versus Payment” settlement with the Company (unless such Subscription Amount is the surrender of Debentures,
which shall be tendered to the Company). The Company shall deliver to each Purchaser its respective Shares and Warrants as determined
pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable
at the First Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the First Closing shall
occur at the offices of the Placement Agent or such other location as the parties shall mutually agree. Unless otherwise directed
by the Placement Agent, settlement of the Shares shall occur via “Delivery Versus Payment” (“DVP”)
(i.e., on the First Closing Date, the Company shall issue the Shares registered in the Purchasers’ names and addresses
and released by the Transfer Agent directly to the account(s) at the Placement Agent identified by each Purchaser; upon receipt
of such Shares, the Placement Agent shall promptly deliver such Shares electronically and the Warrants in physical form to the
applicable Purchaser, and payment therefor shall be made by the Placement Agent (or its clearing firm) by wire transfer to the
Company)(except for the surrender of Debentures, which shall be tendered to the Company). The Company covenants that, if the Purchaser
delivers a Notice of Exercise (as defined in the Series B Warrants) at least one (1) Trading Day prior to the First Closing Date
to exercise any Series B Warrants between the date hereof and the First Closing Date, the Company shall deliver Ordinary Shares
with respect to the Series B Warrants to the Purchaser on the First Closing Date in connection with such Notice of Exercise.

 

    	 	7	 

     

    

 

(b)          Second
Closing. On the Second Closing Date, substantially concurrent with the execution and delivery of this Agreement by the parties
hereto, the Company agrees to sell, and the Purchasers, severally and not jointly, agree to purchase, up to an aggregate of up
to $[___ million of Class A Units or Class B Units as calculated pursuant to Section 2.2(a). The Second Closing shall occur on,
or as soon as reasonably practicable following, and in any event within 5 Trading days of, the date on which, Shareholder Approval
is deemed obtained and effective. Notwithstanding anything herein to the contrary, to the extent that a Purchaser determines, in
its sole discretion, that such Purchaser’s Subscription Amount (together with such Purchaser’s Affiliates and any Person
acting as a group together with such Purchaser or any of such Purchaser’s Affiliates) would cause such Purchaser’s
beneficial ownership of the Ordinary Shares to exceed 4.99% (or, at the election of the Purchaser, 9.99%) of the outstanding Ordinary
Shares, such Purchaser may elect to purchase Class B Units in lieu of Class A Units as determined pursuant to Section 2.2(a); provided,
however, that, in the event that a Purchaser’s Subscription Amount (together with such Purchaser’s Affiliates and any
Person acting as a group together with such Purchaser or any of such Purchaser’s Affiliates) would cause such Purchaser’s
beneficial ownership of the Ordinary Shares to exceed 19.99% of the outstanding Ordinary Shares, in lieu of Ordinary Shares in
excess of such amount, such Purchaser shall be issued Class B Units as determined pursuant to Section 2.2(a). Each Purchaser’s
Subscription Amount as set forth on the signature page hereto executed by such Purchaser shall be made available for “Delivery
Versus Payment” settlement with the Company. The Company shall deliver to each Purchaser its respective Shares and Warrants
as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section
2.2 deliverable at the Second Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the
Second Closing shall occur at the offices of the Placement Agent or such other location as the parties shall mutually agree. Unless
otherwise directed by the Placement Agent, settlement of the Shares shall occur via DVP (i.e., on the Second Closing Date, the
Company shall issue the Shares registered in the Purchasers’ names and addresses and released by the Transfer Agent directly
to the account(s) at the Placement Agent identified by each Purchaser; upon receipt of such Shares, the Placement Agent shall promptly
deliver electronically such Shares and the Warrants in physical form to the applicable Purchaser, and payment therefor shall be
made by the Placement Agent (or its clearing firm) by wire transfer to the Company). The Company covenants that, if the Purchaser
delivers a Notice of Exercise (as defined in the Series B Warrants) at least one (1) Trading Day prior to the Second Closing Date
to exercise any Series B Warrants between the date hereof and the Second Closing Date, the Company shall deliver Ordinary Shares
with respect to the Series B Warrants to the Purchaser on the Second Closing Date in connection with such Notice of Exercise.

 

2.2         Deliveries.

 

(a)          On
or prior to each Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i)          as
to the First Closing, this Agreement duly executed by the Company;

 

    	 	8	 

     

    

 

(ii)         legal
opinions of U.S. Company Counsel, Israeli Company Counsel and the Company’s IP Counsel and negative assurance letters U.S.
Company Counsel, Israeli Company Counsel and the Company’s General Counsel in forms reasonably acceptable to the Placement
Agent and the Purchasers;

 

(iii)        the
Company shall have provided each Purchaser with the Company’s wire instructions, on Company letterhead and executed by the
Chief Executive Officer or Chief Financial Officer;

 

(iv)        subject
to the penultimate sentence of Section 2.1, if such Purchaser is acquiring Class A Units, a copy of the irrevocable instructions
to the Transfer Agent instructing the Transfer Agent to deliver on an expedited basis via The Depository Trust Company Deposit
or Withdrawal at Custodian system (“DWAC”) Shares equal to such Purchaser’s Subscription Amount for the
applicable Closing divided by the Per Share Purchase Price, registered in the name of such Purchaser;

 

(v)         to
each Purchaser that will receive any Class B Units in lieu of Class A Units pursuant to Section 2.1, Series B Warrants, each registered
in the name of such Purchaser to purchase one (1) Ordinary Share, with an exercise price equal to $0.01 per Ordinary Share, such
Series B Warrants exercisable in the aggregate for a total number of Ordinary Shares equal to the number of Class B Units set forth
on such Purchaser’s signature page (such Series B Warrant shall be delivered on the applicable Closing Date);

 

(vi)        such
number of Series A Warrants equal to 100% of the number of Ordinary Shares to be delivered at the applicable Closing in accordance
with sub-Section (iv) above (plus the number of Series A Warrants equal to 100% of the number of Ordinary Shares underlying Series
B Warrants to be delivered at the applicable Closing in accordance with sub-Section (v) above);

 

(vii)       on
the First Closing Date, the duly executed and delivered Secretary’s Certificate, in form and substance reasonably satisfactory
in all respects to the Placement Agent;

 

(viii)      as
to the First Closing, a 90-day lock-up agreement (the “Lock-Up Agreements”) from each of the Company’s directors
and officers, in a form reasonably acceptable to the Placement Agent and the Purchasers; and

 

(ix)         the
Preliminary Prospectus (which may be delivered in accordance with Rule 172 under the Securities Act).

 

    	 	9	 

     

    

 

(b)          On
or prior to each Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i)          as
to the First Closing, this Agreement duly executed by such Purchaser; and

 

(ii)         such
Purchaser’s Subscription Amount (less, if applicable, the aggregate $0.01 exercise price per Ordinary Share of the Series
B Warrants issuable to such Purchaser hereunder) for the applicable Closing, which shall be made available for “Delivery
Versus Payment” settlement with the Company if payable in cash or by tendering Debentures for cancelation if payable through
cancelation of indebtedness.

 

2.3         Closing
Conditions. 

 

(a)          The
obligations of the Company hereunder in connection with the applicable Closing are subject to the following conditions being met:

 

(i)          the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) on the applicable Closing Date of the representations and warranties of the Purchasers contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)         all
obligations, covenants and agreements of each Purchaser required to be performed at or prior to the applicable Closing Date shall
have been performed;

 

(iii)        the
delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement;

 

(iv)        in
the event that, upon the issuance  of Shares to a Purchaser at the applicable Closing, such Purchaser will hold (in accordance
with the definition of the term “holding” in the Israeli Securities Law, 1968) 5% or more of the Company’s issued
share capital or of the voting rights in the Company, the delivery by such Purchaser to the Company of the Undertaking towards
the INATI substantially in the form attached hereto as Exhibit C duly executed by such Purchaser (the “INATI Undertaking”);
and

 

(v)         as
to the Second Closing, the Company shall have obtained the Shareholder Approval.

 

(b)          The
respective obligations of the Purchasers hereunder in connection with the applicable Closing are subject to the following conditions
being met:

 

(i)          the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) when made and on each Closing Date of the representations and warranties of the Company contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

    	 	10	 

     

    

 

(ii)         all
obligations, covenants and agreements of the Company required to be performed at or prior to the applicable Closing Date shall
have been performed;

 

(iii)        the
delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv)        there
shall have been no Material Adverse Effect with respect to the Company since the date hereof;

 

(v)         as
to the Second Closing, the Registration Statement registering all of the Securities shall have remained effective and be available
for the issuance of the Securities at the Second Closing, including all Warrants and Warrant Shares;

 

(vi)        as
to the Second Closing, the Company shall have obtained Shareholder Approval and delivered evidence thereof that is reasonably satisfactory
to each Purchaser;

 

(vii)       as
to the Second Closing, such Closing shall have occurred on or before _______________, 2017; and

 

(viii)      from
the date hereof to the applicable Closing Date, trading in the Ordinary Shares shall not have been suspended by the Commission
or the Company’s principal Trading Market, and, at any time prior to the applicable Closing Date, trading in securities generally
as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities
whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by
the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities
or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial
market which, in each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the
Securities at the applicable Closing.

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1         Representations
and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed
a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding
section of the Disclosure Schedules, the Company hereby makes the following representations and warranties to each Purchaser:

 

    	 	11	 

     

    

 

(a)          Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company owns, directly or indirectly,
all of the capital shares or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding
shares of capital share of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar
rights to subscribe for or purchase securities. If the Company has no subsidiaries, all other references to the Subsidiaries or
any of them in the Transaction Documents shall be disregarded.

 

(b)          Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing (if applicable in such jurisdiction) under the laws of the jurisdiction of its incorporation or organization,
with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.
Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles
of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified
to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of
the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified
or in good standing, as the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on
the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations,
assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii)
a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under
any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been
instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority
or qualification.

 

(c)          Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.
The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by
it of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action on the part
of the Company and no further action is required by the Company, the Board of Directors or the Company’s shareholders in
connection herewith or therewith other than in connection with the Required Approvals and the Shareholder Approval. The exercisability
of the Series A Warrants into Warrant Shares is subject to the Company’s obtaining the Shareholder Approval and filing an
amendment to the Company’s Articles of Association reflecting the increase in the number of authorized Ordinary Shares from
7,500,000 to 25,000,000. This Agreement and each other Transaction Document to which it is a party has been (or upon delivery will
have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, assuming due authorization,
execution and delivery by the applicable Purchaser thereof, will constitute the valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally,
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and
(iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

    	 	12	 

     

    

 

(d)          No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to
which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby
and thereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate
or articles of incorporation, bylaws or other organizational or charter documents (it being understood that exercisability of the
Series A Warrants into Warrant Shares is subject to the Company’s obtaining the Shareholder Approval and filing an amendment
to the Company’s Articles of Association reflecting the increase in the number of authorized Ordinary Shares from 7,500,000
to 25,000,000), or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become
a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or
give to others any rights of termination, amendment, anti-dilution or similar adjustments, acceleration or cancellation (with or
without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary
debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of
the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation
of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to
which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property
or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could
not have or reasonably be expected to result in a Material Adverse Effect.

 

(e)          Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i)
the filings required pursuant to Section 4.4 of this Agreement, (ii) the filing with the Commission of the Prospectus, (iii) application(s)
to each applicable Trading Market for the listing of the Shares and Warrant Shares for trading thereon in the time and manner required
thereby, (iv) the Israeli Securities Authority, if required, (v) such filings as are required to be made under applicable state
securities law and filings required by the Israeli Registrar of Companies, if required, and (vi) notice of this Transaction to
the Israel Innovative Authority of the Ministry of Economy and Industry (“INATI”), if notice is required (collectively,
the “Required Approvals”).

 

    	 	13	 

     

    

 

(f)           Issuance
of the Securities; Registration. The Securities are duly authorized (and with respect to the Warrant Shares underlying the
Series A Warrants – such authorization is subject to the Shareholder Approval) and, when issued and paid for in accordance
with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all
Liens imposed by the Company (it being understood that exercisability of the Series A Warrants into Warrant Shares is subject to
the Company’s obtaining the Shareholder Approval and filing an amendment to the Company’s Articles of Association reflecting
the increase in the number of authorized Ordinary Shares from 7,500,000 up to 25,000,000). The Warrant Shares, when issued in accordance
with the terms of the Warrants, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the
Company. The Company (i) has reserved from its duly authorized capital share the maximum number of Shares issuable upon the First
Closing and the Ordinary Shares issuable upon the exercise of the Series B Warrants issuable upon the First Closing pursuant to
this Agreement, (ii) subject to Shareholder Approval, will reserve the maximum number of Ordinary Shares issuable upon the exercise
of the Series A Warrants issuable upon the First Closing, and (iii) subject to the occurrence of the Second Closing, will reserve
the maximum number of Shares issuable upon the Second Closing, the Ordinary Shares issuable upon the exercise of the Series B Warrants
issuable upon the Second Closing and the Ordinary Shares issuable upon the exercise of the Series A Warrants issuable at the Second
Closing. The Company has prepared and filed the Registration Statement in conformity with the requirements of the Securities Act,
which became effective on [___, 2017 (the “Effective Date”), including the Prospectus, and such amendments
and supplements thereto as may have been required to the date of this Agreement. The Company was at the time of the filing of the
Registration Statement eligible to use Form S-1. The Registration Statement is effective under the Securities Act and no stop order
preventing or suspending the effectiveness of the Registration Statement or suspending or preventing the use of the Prospectus
has been issued by the Commission and no proceedings for that purpose have been instituted or, to the knowledge of the Company,
are threatened by the Commission. The Company, if required by the rules and regulations of the Commission, shall file the Prospectus
with the Commission pursuant to Rule 424(b). At the time the Registration Statement and any amendments thereto became effective,
at the date of this Agreement and at the applicable Closing Date, the Registration Statement and any amendments thereto conformed
and will conform in all material respects to the requirements of the Securities Act and did not and will not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein not misleading; and the Preliminary Prospectus and the Prospectus and any amendments or supplements thereto, at time the
Preliminary Prospectus or the Prospectus, as applicable, or any amendment or supplement thereto was issued and at the applicable
Closing Date, conformed and will conform in all material respects to the requirements of the Securities Act and did not and will
not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading.

 

    	 	14	 

     

    

 

(g)          Capitalization.
The capitalization of the Company is as set forth on Schedule 3.1(g). The Company has not issued any capital share since
its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee share options under
the Company’s share option plans, the issuance of Ordinary Shares to employees pursuant to the Company’s employee share
purchase plans and pursuant to the conversion and/or exercise of Ordinary Share Equivalents outstanding as of the date of the most
recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation,
or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as a result of the purchase
and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or
giving any Person any right to subscribe for or acquire, any Ordinary Shares or Ordinary Share Equivalents or the capital share
of any Subsidiary, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become
bound to issue additional Ordinary Shares or Ordinary Share Equivalents or capital stock of any Subsidiary. The issuance and sale
of the Securities will not obligate the Company or any Subsidiary to issue Ordinary Shares or Ordinary Share Equivalents or other
securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust
the exercise, conversion, exchange or reset price under any of such securities. There are no outstanding securities or instruments
of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings
or arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary.
The Company does not have any share appreciation rights or “phantom share” plans or any similar plan or agreement.
All of the outstanding share capital of the Company is duly authorized, validly issued, fully paid and nonassessable, the outstanding
shares have been issued in compliance with all federal and state or foreign securities laws, and none of such outstanding shares
was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Other than the Required
Approvals and the Shareholder Approval, no further approval or authorization of any shareholder, the Board of Directors or others
is required for the issuance and sale of the Securities. There are no shareholders agreements, voting agreements or other similar
agreements with respect to the Company’s share capital to which the Company is a party or, to the knowledge of the Company,
between or among any of the Company’s shareholders, except as set forth on Schedule 3.1(g).

 

    	 	15	 

     

    

 

(h)          SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such
material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, together with
the Preliminary Prospectus and the Prospectus, being collectively referred to herein as the “SEC Reports”) on
a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of
the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject
to Rule 144(i) under the Securities Act. The financial statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect
at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified
in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries
as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of
unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(i)           Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there has
been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect,
(ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses
incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the
Company’s financial statements pursuant to GAAP or disclosed in the SEC Reports, (iii) the Company has not altered its method
of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its shareholders
or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital share and (v) the Company has not
issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company share option plans. The
Company does not have pending before the Commission any request for confidential treatment of information. Except for the issuance
of the Securities contemplated by this Agreement or as set forth on Schedule 3.1(i), no event, liability, fact, circumstance,
occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its
Subsidiaries or their respective businesses, prospects, properties, operations, assets or financial condition that would be required
to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has
not been publicly disclosed at least 1 Trading Day prior to the date that this representation is made.

 

    	 	16	 

     

    

 

(j)           Litigation.
There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities
or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither
the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim
of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been,
and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company
or any current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending
the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities
Act.

 

(k)          Labor
Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of
the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither
the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe
that their relationships with their employees are good. To the knowledge of the Company, no executive officer of the Company or
any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure
or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant
in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of
its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance
with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and
conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

(l)           Compliance.
Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the
Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any
court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation
of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental
protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as
could not have or reasonably be expected to result in a Material Adverse Effect.

 

    	 	17	 

     

    

 

(m)         Environmental
Laws. The Company and its Subsidiaries (i) are in compliance with
all federal, state, local and foreign laws relating to pollution or protection of human health or the environment (including ambient
air, surface water, groundwater, land surface or subsurface strata), including laws relating to emissions, discharges, releases
or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous
Materials”) into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand
letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated
or approved thereunder (“Environmental Laws”); (ii) have received all permits licenses or other approvals required
of them under applicable Environmental Laws to conduct their respective businesses; and (iii) are in compliance with all terms
and conditions of any such permit, license or approval where in each clause (i), (ii) and (iii), the failure to so comply could
be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(n)          Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

(o)          Title
to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries,
in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries, and (ii) Liens
for the payment of federal, state, Israeli or other taxes, for which appropriate reserves have been made therefor in accordance
with GAAP and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under
lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company
and the Subsidiaries are in compliance in all material respects.

 

    	 	18	 

     

    

 

(p)          Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights as necessary or required for use in connection with their respective businesses as described in the SEC Reports
and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).
None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual
Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2)
years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the latest audited
financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual
Property Rights violate or infringe (and will not infringe) upon the rights of any Person, except as could not have or reasonably
be expected to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable
and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries
have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties,
except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
The Company has no knowledge of any facts that would preclude it from having valid license rights or clear title to the Intellectual
Property Rights. The Company has no knowledge that it lacks or will be unable to obtain any rights or licenses to use all Intellectual
Property Rights that are necessary to conduct its business. Notwithstanding the above, the Company participated in a consortium
which was supported by the INATI. The consent of the INATI will be required for the transfer of know how developed in the framework
of the consortium or rights to manufacture based on and/or incorporating such know how to third parties who are not members of
the consortium. The Company also participated in a Magneton Project which was supported by the INATI. The transfer of know how
developed in the framework of the Magneton Project or rights to manufacture based on and/or incorporating such know how is subject
to limitations specified in the Israeli Encouragement of Industrial Research and Development Law, 5744-1984 (R&D Law)

 

(q)          Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including,
but not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription Amount. Neither the
Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without
a significant increase in cost.

 

(r)           Transactions
With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company or
any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party
to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, shareholder, member or partner, in each case
in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company and (iii) other employee benefits, including share option agreements under any share option plan
of the Company.

 

    	 	19	 

     

    

 

(s)          Sarbanes-Oxley;
Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable requirements of
the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof and as of the applicable Closing and are applicable to
the Company and the Subsidiaries, and any and all applicable rules and regulations promulgated by the Commission thereunder that
are effective as of the date hereof and as of the applicable Closing Date. The Company and the Subsidiaries maintain a system of
internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance
with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the
existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company and the Subsidiaries
have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company
and the Subsidiaries and designed such disclosure controls and procedures to ensure that information required to be disclosed by
the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the
time periods specified in the Commission’s rules and forms. The Company’s certifying officers have evaluated the effectiveness
of the disclosure controls and procedures of the Company and the Subsidiaries as of the end of the period covered by the most recently
filed periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company presented in its
most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of
the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have
been no changes in the internal control over financial reporting (as such term is defined in the Exchange Act) of the Company and
its Subsidiaries that have materially affected, or is reasonably likely to materially affect, the internal control over financial
reporting of the Company and its Subsidiaries.

 

(t)           Certain
Fees. Except as set forth in the Preliminary Prospectus or the Prospectus, no brokerage or finder’s fees or commissions
are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchasers
shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees
of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.

 

(u)          Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended. The Company shall conduct its business in a manner so that it will not become an “investment company” subject
to registration under the Investment Company Act of 1940, as amended.

 

(v)          Registration
Rights. No Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act
of any securities of the Company or any Subsidiary.

 

    	 	20	 

     

    

 

(w)         Listing
and Maintenance Requirements. The Ordinary Shares are registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and
the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Ordinary Shares under the Exchange Act nor has the Company received any notification that the Commission is contemplating
terminating such registration. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading
Market on which the Ordinary Shares has are or have been listed or quoted to the effect that the Company is not in compliance with
the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in
the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. The Ordinary Shares are
currently eligible for electronic transfer through the Depository Trust Company or another established clearing corporation and
the Company is current in payment of the fees to the Depository Trust Company (or such other established clearing corporation)
in connection with such electronic transfer.

 

(x)          Application
of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Company’s articles of incorporation (or similar charter documents) or
the laws of its state or country of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers
and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation
as a result of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities (subject to
the compliance of the Purchasers with its respective representation and warranty under the second paragraph of Section 3.2(c)).

 

(y)          Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel
with any information that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed
in the Preliminary Prospectus or Prospectus. The Company understands and confirms that the Purchasers will rely on the foregoing
representation in effecting transactions in securities of the Company. All of the disclosure furnished by or on behalf of the Company
to the Purchasers regarding the Company and its Subsidiaries, their respective businesses and the transactions contemplated hereby,
including the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under
which they were made, not misleading. The press releases disseminated by the Company during the twelve months preceding the date
of this Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were
made and when made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations
or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

    	 	21	 

     

    

 

(z)           No
Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering
of the Securities to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval provisions
of any Trading Market on which any of the securities of the Company are listed or designated.

 

(aa)        Solvency.
Based on the consolidated financial condition of the Company as of the applicable Closing Date, after giving effect to the receipt
by the Company of the proceeds from the sale of the Securities hereunder, (i) the fair saleable value of the Company’s assets
exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities
(including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital
to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular
capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability
thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate
all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in
respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability
to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt).
The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one year from the applicable Closing Date. Schedule 3.1(aa)
sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which
the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” means (x)
any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary
course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether
or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto), except guaranties
by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business;
and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance
with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

    	 	22	 

     

    

 

(bb)        Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local
income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject,
(ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due
on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of
all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid
taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or
of any Subsidiary know of no basis for any such claim.

 

(cc)        Foreign
Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent
or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful
contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any
unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns
from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person
acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any
provision of FCPA or Sections 291 and 291A of the Israeli Penalty Law 5737-1977 (Bribery Transactions).

 

(dd)        Accountants.
The Company’s independent registered public firm is set forth on Schedule 3.1(dd) of the Disclosure Schedules. To
the knowledge and belief of the Company, such accounting firm (i) is a registered public accounting firm as required by the Exchange
Act and (ii) shall express its opinion with respect to the financial statements to be included in the Company’s Annual Report
for the fiscal year ending December 31, 2017.        

 

(ee)        
Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the
Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the
transactions contemplated thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary
of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby
and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents
and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities. The Company
further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents
has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

    	 	23	 

     

    

 

(ff)         Acknowledgement
Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere
herein to the contrary notwithstanding (except for Sections 3.2(e) and 4.14 hereof), it is understood and acknowledged by the
Company that: (i) none of the Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist from
purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities
issued by the Company or to hold the Securities for any specified term; (ii)
past or future open market or other transactions by any Purchaser, specifically including, without limitation, Short Sales or
“derivative” transactions, before or after the closing of this or future private placement transactions, may negatively
impact the market price of the Company’s publicly-traded securities; (iii) any Purchaser, and counter-parties in “derivative”
transactions to which any such Purchaser is a party, directly or indirectly, presently may have a “short” position
in the Ordinary Share, and (iv) each Purchaser shall not be deemed to have any affiliation with or control over any arm’s
length counter-party in any “derivative” transaction. The Company further understands and acknowledges that
(y) one or more Purchasers may engage in hedging activities at various times during the period that the Securities are outstanding,
including, without limitation, during the periods that the value of the Warrant Shares deliverable with respect to Securities
are being determined, and (z) such hedging activities (if any) could reduce the value of the existing shareholders' equity interests
in the Company at and after the time that the hedging activities are being conducted.  The Company acknowledges that such
aforementioned hedging activities do not constitute a breach of any of the Transaction Documents.

 

(gg)        Regulation
M Compliance.  The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases
of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any
other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s placement
agent in connection with the placement of the Securities.

 

    	 	24	 

     

    

 

(hh)        FDA.
As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”) or any non-U.S.
counterpart that is manufactured, packaged, labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries
(each such product, a “Product”), such Product is being manufactured, packaged, labeled, tested, distributed,
sold and/or marketed by the Company or its Subsidiaries in compliance with all applicable Health Care Laws relating to registration,
investigational use, premarket clearance, licensure, or application approval, good manufacturing practices, good laboratory practices,
good clinical practices, product listing, quotas, labeling, advertising, record keeping and filing of reports, except where the
failure to be in compliance would not have a Material Adverse Effect. There is no pending, completed or, to the Company's knowledge,
threatened, action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint,
or investigation) against the Company or any of its Subsidiaries, and none of the Company or any of its Subsidiaries has received
any notice, warning letter or other communication from the FDA or any other governmental entity, which (i) contests the premarket
clearance, licensure, registration, or approval of, the uses of, the distribution of, the manufacturing or packaging of, the testing
of, the sale of, or the labeling and promotion of any Product, (ii) withdraws its approval of, requests the recall, suspension,
or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials relating to, any Product, (iii)
imposes a clinical hold on any clinical investigation by the Company or any of its Subsidiaries, (iv) enjoins production at any
facility of the Company or any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction
with the Company or any of its Subsidiaries, or (vi) otherwise alleges any violation of any laws, rules or regulations by the Company
or any of its Subsidiaries, and which, either individually or in the aggregate, would have a Material Adverse Effect. The properties,
business and operations of the Company have been and are being conducted in all material respects in accordance with all applicable
Health Care Laws.  The Company has not been informed by the FDA or any non-U.S. counterpart that the FDA or any non-U.S. counterpart
will prohibit the marketing, sale, license or use in the United States or in any other territory any product proposed to be developed,
produced or marketed by the Company or any Subsidiary nor has the FDA or any non-U.S. counterpart expressed any concern as to approving
or clearing for marketing any product being developed or proposed to be developed by the Company or any Subsidiary. To the Company’s
knowledge, there are no legal or governmental proceedings relating to any Health Care Law pending or threatened to which the Company
is a party, nor is it aware of any material violations of such acts or regulations by the Company, which would have a Material
Adverse Effect. For purposes of this Agreement, “Health Care Laws” means: (i) the Federal Food, Drug, and Cosmetic
Act and the regulations promulgated thereunder; (ii) all applicable federal, state, local and all applicable foreign health care
related fraud and abuse laws, including, without limitation, the U.S. Anti-Kickback Statute (42 U.S.C. Section 1320a-7b(b)), the
U.S. Physician Payment Sunshine Act (42 U.S.C. § 1320a-7h), the U.S. Civil False Claims Act (31 U.S.C. Section 3729 et seq.),
the criminal False Claims Law (42 U.S.C. § 1320a-7b(a)), all criminal laws relating to health care fraud and abuse, including
but not limited to 18 U.S.C. Sections 286 and 287, and the health care fraud criminal provisions under the U.S. Health Insurance
Portability and Accountability Act of 1996 (“HIPAA”) (42 U.S.C. Section 1320d et seq.), the exclusion laws (42
U.S.C. § 1320a-7), the civil monetary penalties law (42 U.S.C. § 1320a-7a), the statutes, regulations and directives
of applicable government funded or sponsored healthcare programs, and the regulations promulgated pursuant to such statutes; (iii)
the Standards for Privacy of Individually Identifiable Health Information (the “Privacy Rule”), the Security Standards,
and the Standards for Electronic Transactions and Code Sets promulgated under HIPAA, the Health Information Technology for Economic
and Clinical Health Act (42 U.S.C. Section 17921 et seq.), and the regulations promulgated thereunder and any state or non-U.S.
counterpart thereof or other law or regulation the purpose of which is to protect the privacy of individuals or prescribers; (iv)
Medicare (Title XVIII of the Social Security Act); (v) Medicaid (Title XIX of the Social Security Act); and (vi) any and all other
applicable health care laws and regulations. 

 

    	 	25	 

     

    

 

(ii)          Research
Studies and Trials. The research studies and trials conducted by or on behalf of, or sponsored by, the Company or its Subsidiaries,
or in which the Company or its Subsidiaries has participated, that are described in the Preliminary Prospectus or the Prospectus,
or the results of which are referred to in the Preliminary Prospectus or the Prospectus, as applicable, were and, if still pending,
are being, conducted in all material respects in accordance with applicable experimental protocols, procedures and controls pursuant
to, where applicable, accepted professional and scientific standards for products or product candidates comparable to those being
developed by the Company or its Subsidiaries and all applicable statutes, rules and regulations of the U.S. Food and Drug Administration
(the “FDA”) and other comparable drug and medical device regulatory agencies to which they are subject; the
descriptions of the results of such studies and trials contained in the Preliminary Prospectus or the Prospectus do not contain
any misstatement of a material fact or omit to state a material fact necessary to make such statements not misleading; neither
the Company nor any Subsidiary has knowledge of any research studies or trials not described in the Preliminary Prospectus or the
Prospectus the results of which reasonably call into question in any material respect the results of the research studies and trials
described in the Preliminary Prospectus or the Prospectus; and neither the Company nor any Subsidiary has received any written
notices or correspondence from the FDA or any other foreign, state or local governmental body exercising comparable authority or
any institutional review board or comparable authority requiring or threatening the premature termination, suspension, material
modification or clinical hold of any research studies or trials conducted by or on behalf of, or sponsored by, the Company or any
Subsidiary or in which the Company or any Subsidiary has participated that are described in the Preliminary Prospectus or the Prospectus,
and, to the Company’s knowledge, there are no reasonable grounds for the same. There has not been any violation of applicable
law or regulation by the Company in its product development efforts, submissions or reports to any regulatory authority that could
reasonably be expected to require investigation, corrective action or enforcement action, except where such violation would not,
singly or in the aggregate, result in a Material Adverse Effect. 

 

(jj)          Office
of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer, agent,
employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(kk)        U.S.
Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s
request.

 

(ll)          Bank
Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act
of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the
“Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly
or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent or
more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither
the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

    	 	26	 

     

    

 

(mm)      Money
Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with
applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the Israeli Prohibition on Money Laundering Law, 2000, as amended and the applicable money laundering statutes and
applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”), and no Action or Proceeding
by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary with
respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.

 

(nn)       Acknowledgment
Regarding Purchaser's Purchase of Securities. The Company acknowledges and agrees that each Purchaser is acting solely in the
capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby
and that no Purchaser is (i) an officer or director of the Company or any of its Subsidiaries, (ii) an "affiliate" of
the Company or any of its Subsidiaries (as defined in Rule 144) or (iii) to the knowledge of the Company, a "beneficial owner"
of more than 10% of the Common Shares (as defined for purposes of Rule 13d-3 of the Exchange Act. The Company further acknowledges
that no Purchaser is acting as a financial advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity)
with respect to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by a Purchaser
or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and
thereby is merely incidental to such Purchaser's purchase of the Securities. The Company further represents to each Purchaser that
the Company's decision to enter into the Transaction Documents has been based solely on the independent evaluation by the Company
and its representatives.

 

(ww)      Israeli
Law Matters.

 

(i)           The Company
has validly appointed Rosetta Genomics Inc., as its authorized agent for service of process.

 

(ii)          No proceedings
have been instituted in the State of Israel for the dissolution of the Company. The Company is not currently designated as a “breaching
company” (within the meaning of the Israeli Companies Law) by the Registrar of Companies of the State of Israel, nor has
a proceeding been instituted by the Registrar of Companies in Israel for the dissolution of the Company or Subsidiaries.

 

(iii)         All
grants and issuances of the Company's Ordinary Shares to its, or its Subsidiaries', employees were made pursuant to an employee
benefit plan, qualified share option plan or other equity compensation plan as described in the Preliminary Prospectus and the
Prospectus and in accordance with the Israeli Securities Law. With respect to any share options granted (the “Share Options”)
(i) each Share Option purported to be issued under Section 102 of the Israel Tax Ordinance qualifies for treatment under that section
and for treatment under the capital gains track, (ii) each Share Option intended to qualify as an “incentive stock option”
under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”) so qualifies in all material
respects, and (iii) each grant of a Share Option was duly authorized no later than the date on which the grant of such Share Option
was by its terms to be effective by all necessary corporate action, in each case, in all material respects, including, as applicable,
approval by the board of directors of the Company (or a duly constituted and authorized committee thereof) and any required shareholder
approval by the necessary number of votes or written consents, and the award agreement governing such grant (if any) was duly executed
and delivered by each party thereto.

 

    	 	27	 

     

    

 

(iv)         Except
as set forth Preliminary Prospectus and the Prospectus, neither the Company nor any of Subsidiary (i) has any outstanding
obligations to INATI, nor (ii) is in material violation with respect to any instrument of approval granted to it by the INATI.

 

(v)          Assuming
the Company or the Placement Agent, acting on behalf of the Company, has not offered the Ordinary Shares and Warrants or otherwise
engaged in solicitation, advertising or any other action constituting an offer to the public under the Israeli Securities Law in
Israel, the Company is not required to publish a prospectus or any other listing document or registration statement in the State
of Israel under the laws of the State of Israel in connection with the offer and sale of the Securities. Aside from (i) investors
who are specified in the first Addendum of the Israeli Securities Law, (ii) offers made to employees of the Company pursuant
to Section 15D of the Israeli Securities Law and offers made pursuant to an applicable prospectus filed under Israeli Securities
Law, there were no more than 35 offerees, in the aggregate, to whom the Company and any of its respective representatives (excluding
the Underwriter) made an offering in Israel of any securities of the Company in any period of twelve months.

 

(vi)         Except
as described in the Preliminary Prospectus and the Prospectus, the Company is in compliance in all material respects with the applicable
corporate governance requirements of the Israeli Companies Law, the Israeli Securities Law and the regulations thereunder.

 

(vii)        Assuming
the Placement Agent has not offered the Ordinary Shares and Warrants or otherwise engaged in solicitation, advertising or any other
action constituting an offer to the public under the Israeli Securities Law in Israel, the Company has not engaged in any form
of solicitation, advertising or any other action constituting an offer under the under the Israeli Securities Law, and the regulations
promulgated thereunder, in connection with the transactions contemplated hereby which would require the Company to publish a prospectus
in the State of Israel under the laws of the State of Israel.

 

(viii)       Assuming that the Purchasers are not otherwise subject to taxation in the State of Israel, none of the issuance, delivery and sale
of the Securities by the Company or the execution and delivery of this Agreement will be subject to any tax (including interest
and penalties) imposed on the Purchasers by the State of Israel or any political subdivision thereof whether imposed directly or
through withholding.

 

(ix)          Neither
the Company, any of its Subsidiaries nor any of its properties or assets has any immunity from the jurisdiction of any court or
from any legal process (whether through service or notice, attachment to prior judgment, attachment in aid of execution or otherwise)
under the laws of the State of Israel.

 

    	 	28	 

     

    

 

(x)           No stamp
duty or similar tax or duty is payable under applicable laws or regulations in connection with the creation, issuance or delivery
of the Securities.

 

(xi)          Subject
to the conditions and qualifications set forth in Preliminary Prospectus and the Prospectus, a final and conclusive judgment against
the Company for a definitive sum of money entered by any court in the United States may be enforced by an Israeli court.

 

(oo)        The
Company complies and will comply in all material respects with all applicable securities laws and other applicable laws, rules
and regulations.

 

3.2         Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as
of the date hereof and as of the applicable Closing Date to the Company as follows (unless as of a specific date therein, in which
case they shall be accurate as of such date):

 

(a)          Organization;
Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability
company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and
performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary
corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction
Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with
the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance
with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

(b)          Understandings
or Arrangements. Such Purchaser is acquiring the Securities as principal for its own account and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation
and warranty not limiting such Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise
in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary
course of its business.

 

(c)          Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is either: (i) an “accredited
investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified
institutional buyer” as defined in Rule 144A(a) under the Securities Act; or if the Purchaser was offered the Securities
in Israel, he is listed in the First Addendum to the Israeli Securities Law and complied with the requirements of such addendum..

 

    	 	29	 

     

    

 

Without derogating
from the above, following the issuance of the Shares and/or Warrant Shares, the Purchaser will not hold (in accordance with the
term “holding” in the Israeli Securities Law, 1968), either alone or in cooperation with other(s), either directly
or indirectly, through a trustee or in any other way, 25% or more of the Company’s issued share capital or voting rights.

 

(d)          Experience
of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e)          Access
to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including
all exhibits and schedules thereto) and the SEC Reports and has been afforded, (i) the opportunity to ask such questions as it
has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the
offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the Company
and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate
its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without
unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. 
Such Purchaser acknowledges and agrees that neither the Placement Agent nor any Affiliate of the Placement Agent has provided such
Purchaser with any information or advice with respect to the Securities nor is such information or advice necessary or desired. 
Neither the Placement Agent nor any Affiliate has made or makes any representation as to the Company or the quality of the Securities
and the Placement Agent and any Affiliate may have acquired non-public information with respect to the Company which such Purchaser
agrees need not be provided to it.  In connection with the issuance of the Securities to such Purchaser, neither the Placement
Agent nor any of its Affiliates has acted as a financial advisor or fiduciary to such Purchaser.

 

    	 	30	 

     

    

 

(f)           Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser has not,
nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed any
purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that
such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting
forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding
the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall
only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase
the Securities covered by this Agreement. Other than to other Persons party to this Agreement or to such Purchaser’s representatives,
including, without limitation, its officers, directors, partners, legal and other advisors, employees, agents and Affiliates, such
Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence
and terms of this transaction). Notwithstanding the foregoing, for the avoidance of doubt, nothing contained herein shall constitute
a representation or warranty against, or a prohibition of, any actions with respect to the borrowing of, arrangement to borrow,
identification of the availability of, and/or securing of, securities of the Company in order for such Purchaser (or its broker
or other financial representative) to effect Short Sales or similar transactions in the future.

 

(g)          Series
A Warrants. Such Purchaser acknowledges and agrees that, as of the date of the issuance of the Series A Warrants the Company
does not have a sufficient number of authorized Ordinary Shares to cover the Warrant Shares issuable upon exercise of the Series
A Warrant, and therefore, the Series A Warrant will only become exercisable subject to the Shareholder Approval (as such term is
defined above).

 

The Company acknowledges
and agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such Purchaser’s right
to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this
Agreement or the consummation of the transactions contemplated hereby.

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1         Warrant
Shares. If all or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover
the issuance of the Warrant Shares or if the Warrant is exercised via cashless exercise, the Warrant Shares issued pursuant to
any such exercise shall be issued free of all legends. If at any time following the date hereof the Registration Statement (or
any subsequent registration statement registering the issuance of the Warrant Shares) is not effective or is not otherwise available
for the issuance of the Warrant Shares, the Company shall immediately notify the holders of the Warrants in writing that such
registration statement is not then effective and thereafter shall promptly notify such holders when the registration statement
is effective again and available for issuance of the Warrant Shares (it being understood and agreed that the foregoing shall not
limit the ability of the Company to issue, or any Purchaser to sell, any of the Warrant Shares in compliance with applicable federal
and state securities laws). The Company shall use best efforts to keep a registration statement (including the Registration Statement)
registering the issuance of the Warrant Shares effective during the term of the Warrants.

 

4.2         Furnishing
of Information. Until the earliest of the time that (i) no Purchaser owns Securities or (ii) the Warrants have expired, the
Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject
to the reporting requirements of the Exchange Act.

 

    	 	31	 

     

    

 

4.3         Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities for purposes of the rules
and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other transaction
unless shareholder approval is obtained before the closing of such subsequent transaction.

 

4.4         Securities
Laws Disclosure; Publicity. The Company shall by [8:00 a.m. (New York City time) on the Trading Day immediately following the
date hereof, issue a press release disclosing the material terms of the transactions contemplated hereby. From and after the issuance
of such press release, the Company represents to the Purchasers that it shall have publicly disclosed all material, non-public
information delivered to any of the Purchasers by the Company or any of its Subsidiaries, or any of their respective officers,
directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. In addition, effective
upon the issuance of such press release, the Company acknowledges and agrees that any and all confidentiality or similar obligations
under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers,
directors, agents, employees or Affiliates on the one hand, and any of the Purchasers or any of their Affiliates on the other hand,
shall terminate. The Company and each Purchaser shall consult with each other in issuing any other press releases with respect
to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release nor otherwise
make any such public statement without the prior consent of the Company, with respect to any press release of any Purchaser, or
without the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall not unreasonably
be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide
the other party with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not
publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory
agency or Trading Market, without the prior written consent of such Purchaser, except (a) as required by federal securities law
in connection with the filing of final Transaction Documents with the Commission and (b) to the extent such disclosure is required
by law or Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure
permitted under this clause (b).

 

4.5         Shareholder
Rights Plan. Subject to the Purchasers’ compliance with their respective representations and warranties under the second
paragraph of Section 3.2(c), no claim will be made or enforced by the Company or, with the consent of the Company, any other Person,
that any Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill
(including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted
by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving
Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers.

 

    	 	32	 

     

    

 

4.6         Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents,
which shall be disclosed pursuant to Section 4.4, the Company covenants and agrees that neither it, nor any other Person acting
on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes, or the Company reasonably
believes constitutes, material non-public information, unless prior thereto such Purchaser shall have consented to the receipt
of such information and agreed with the Company to keep such information confidential. The Company understands and confirms that
each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company. To the extent
that the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent, the Company
hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of its Subsidiaries,
or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any of its Subsidiaries
or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis of, such material, non-public
information, provided that the Purchaser shall remain subject to applicable law. To the extent that any notice provided pursuant
to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries,
the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 6-K. The Company understands
and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

 

4.7         Use
of Proceeds. Except as set forth on Schedule 4.7 attached hereto, the Company shall use the net proceeds from the sale of the
Securities hereunder for working capital purposes and shall not use such proceeds: (a) for the satisfaction of any portion of the
Company’s debt (other than payment of trade payables in the ordinary course of the Company’s business and prior practices),
(b) for the redemption of any Ordinary Shares or Ordinary Share Equivalents, (c) for the settlement of any outstanding litigation
or (d) in violation of FCPA or OFAC regulations.

 

    	 	33	 

     

    

 

4.8         Indemnification
of Purchasers. Subject to the provisions of this Section 4.8, the Company will indemnify and hold each Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”) harmless
from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser
Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or
agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against the
Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any shareholder of the Company who is not
an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless
such action is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the Transaction
Documents or any agreements or understandings such Purchaser Party may have with any such shareholder or any violations by such
Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence,
willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may
be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall
have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any
Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment
thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time
to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material
conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the
Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not
be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without the Company’s
prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a
loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties,
covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification
required by this Section 4.8 shall be made by periodic payments of the amount thereof during the course of the investigation or
defense, as and when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to any
cause of action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may be subject
to pursuant to law.

 

4.9         Reservation
of Ordinary Shares. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available
at all times, free of preemptive rights, a sufficient number of Ordinary Shares for the purpose of enabling the Company to issue
the Shares issuable upon the First Closing pursuant to this Agreement and the Shares issuable upon the exercise of the Series B
Warrants issuable upon the First Closing, (ii) upon and following Shareholder Approval, Ordinary Shares issuable pursuant to any
exercise of the Series A Warrants issuable at the First Closing, and (iii) upon and following the Second Closing, the Shares issuable
upon the Second Closing, the Ordinary Shares issuable upon the exercise of the Series B Warrants issuable upon the Second Closing
and the Ordinary Shares issuable upon the exercise of the Series A Warrants issuable at the Second Closing.

 

4.10       Listing
of Ordinary Shares. The Company hereby agrees to use best efforts to maintain the listing or quotation of the Ordinary Shares
on the Trading Market on which they are currently listed, and concurrently with the First Closing, the Company shall apply to list
or quote all of the Shares and Warrant Shares on such Trading Market and promptly secure the listing of all of the Shares and Warrant
Shares on such Trading Market. The Company further agrees, if the Company applies to have the Ordinary Shares traded on any other
Trading Market, it will then include in such application all of the Shares and Warrant Shares, and will take such other action
as is necessary to cause all of the Shares and Warrant Shares to be listed or quoted on such other Trading Market as promptly as
possible. The Company will then take all action reasonably necessary to continue the listing and trading of its Ordinary Shares
on a Trading Market and will comply in all respects with the Company’s reporting, filing and other obligations under the
bylaws or rules of the Trading Market. The Company agrees to maintain the eligibility of the Ordinary Shares for electronic transfer
through the Depository Trust Company or another established clearing corporation, including, without limitation, by timely payment
of fees to the Depository Trust Company or such other established clearing corporation in connection with such electronic transfer.

 

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4.11       Lock-Up.
The Company shall not amend, modify, waive or terminate any provision of any of the Lock-Up Agreements except to extend the term
of the lock-up period and shall enforce the provisions of each Lock-Up Agreement in accordance with its terms. If any officer or
director that is a party to a Lock-Up Agreement breaches any provision of a Lock-Up Agreement, the Company shall promptly use its
best efforts to seek specific performance of the terms of such Lock-Up Agreement.

 

4.12       Participation
in Future Financing.

 

(a)          From
the date hereof until the date that is the 12 month anniversary of the Second Closing Date, upon any issuance by the Company or
any of its Subsidiaries of Common Stock or Common Stock Equivalents for cash consideration, Indebtedness or a combination of units
thereof (a “Subsequent Financing”), the Purchasers shall have the right to participate in such Subsequent Financing
up to an amount equal to 25% of the Subsequent Financing (the “Participation Maximum”) on the same terms, conditions
and price provided for in the Subsequent Financing. 

 

(b)          Between
the time period of 4:00 pm (New York City time) and 6:00 pm (New York City time) on the Trading Day immediately prior to the Trading
Day of the expected announcement of the Subsequent Financing (or, if the Trading Day of the expected announcement of the Subsequent
Financing is the first Trading Day following a holiday or a weekend (including a holiday weekend), between the time period of 4:00
pm (New York City time) on the Trading Day immediately prior to such holiday or weekend and 2:00 pm (New York City time) on the
day immediately prior to the Trading Day of the expected announcement of the Subsequent Financing), the Company shall deliver to
each Purchaser a written notice of the Company’s intention to effect a Subsequent Financing (a “Subsequent Financing
Notice”), which notice shall describe in reasonable detail the proposed terms of such Subsequent Financing, the amount
of proceeds intended to be raised thereunder and the Person or Persons through or with whom such Subsequent Financing is proposed
to be effected and shall include a term sheet and transaction documents relating thereto as an attachment.

 

(c)          Any
Purchaser desiring to participate in such Subsequent Financing must provide written notice to the Company by 6:30 am (New York
City time) on the Trading Day following the date on which the Subsequent Financing Notice is delivered to such Purchaser (the “Notice
Termination Time”) that such Purchaser is willing to participate in the Subsequent Financing, the amount of such Purchaser’s
participation, and representing and warranting that such Purchaser has such funds ready, willing, and available for investment
on the terms set forth in the Subsequent Financing Notice. If the Company receives no such notice from a Purchaser as of such Notice
Termination Time, such Purchaser shall be deemed to have notified the Company that it does not elect to participate in such Subsequent
Financing.

 

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(d)          If,
by the Notice Termination Time, notifications by the Purchasers of their willingness to participate in the Subsequent Financing
(or to cause their designees to participate) is, in the aggregate, less than the total amount of the Subsequent Financing, then
the Company may effect the remaining portion of such Subsequent Financing on the terms and with the Persons set forth in the Subsequent
Financing Notice.

 

(e)          If,
by the Notice Termination Time, the Company receives responses to a Subsequent Financing Notice from Purchasers seeking to purchase
more than the aggregate amount of the Participation Maximum, each such Purchaser shall have the right to purchase its Pro Rata
Portion (as defined below) of the Participation Maximum.  “Pro Rata Portion” means the ratio of (x) the
Subscription Amount of Securities purchased on the Closing Date by a Purchaser participating under this Section 4.12 and (y) the
sum of the aggregate Subscription Amounts of Securities purchased on the Closing Date by all Purchasers participating under this
Section 4.12.

 

(f)           The
Company must provide the Purchasers with a second Subsequent Financing Notice, and the Purchasers will again have the right of
participation set forth above in this Section 4.12, if the definitive agreement related to the initial Subsequent Financing Notice
is not entered into for any reason on the terms set forth in such Subsequent Financing Notice within two (2) Trading Days after
the date of delivery of the initial Subsequent Financing Notice.

 

(g)          The
Company and each Purchaser agree that, if any Purchaser elects to participate in the Subsequent Financing, the transaction documents
related to the Subsequent Financing shall not include any term or provision whereby such Purchaser shall be required to agree to
any restrictions on trading as to any of the Securities purchased hereunder or be required to consent to any amendment to or termination
of, or grant any waiver, release or the like under or in connection with, this Agreement, without the prior written consent of
such Purchaser. In addition, the Company and each Purchaser agree that, in connection with a Subsequent Financing, the transaction
documents related to the Subsequent Financing shall include a requirement for the Company to issue a widely disseminated press
release by 9:30 am (New York City time) on the Trading Day of execution of the transaction documents in such Subsequent Financing
(or, if the date of execution is not a Trading Day, on the immediately following Trading Day) that discloses the material terms
of the transactions contemplated by the transaction documents in such Subsequent Financing.

 

(h)          Notwithstanding
anything to the contrary in this Section 4.12 and unless otherwise agreed to by such Purchaser, the Company shall either confirm
in writing to such Purchaser that the transaction with respect to the Subsequent Financing has been abandoned or shall publicly
disclose its intention to issue the securities in the Subsequent Financing, in either case in such a manner such that such Purchaser
will not be in possession of any material, non-public information, by 9:30 am (New York City time) on the second (2nd) Trading
Day following date of delivery of the Subsequent Financing Notice. If by 9:30 am (New York City time) on such second (2nd) Trading
Day, no public disclosure regarding a transaction with respect to the Subsequent Financing has been made, and no notice regarding
the abandonment of such transaction has been received by such Purchaser, such transaction shall be deemed to have been abandoned
and such Purchaser shall not be deemed to be in possession of any material, non-public information with respect to the Company
or any of its Subsidiaries.

 

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(i)           Notwithstanding
the foregoing, this Section 4.12 shall not apply in respect of an Exempt Issuance.

 

4.13       Subsequent
Equity Sales.

 

(a)          From
the date hereof until the later of (i) 180 days after the First Closing Date, and (ii) 45 days after the later of
Shareholders Approval and the Second Closing Date (such date, the “Market
Standstill Expiration Date”), neither the Company nor any Subsidiary shall issue, enter into any agreement to issue or
announce the issuance or proposed issuance of any Ordinary Shares or Ordinary Share Equivalents.

 

(b)          From
the date hereof until the two year anniversary after each Closing Date, the Company shall be prohibited from effecting or entering
into an agreement to effect any issuance by the Company or any of its Subsidiaries of Ordinary Shares or Ordinary Share Equivalents
(or a combination of units thereof) involving a Variable Rate Transaction. “Variable Rate Transaction” means a transaction
in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for,
or include the right to receive additional Ordinary Shares either (A) at a conversion price, exercise price or exchange rate or
other price that is based upon and/or varies with the trading prices of or quotations for the Ordinary Shares at any time after
the initial issuance of such debt or equity securities, or (B) with a conversion, exercise or exchange price that is subject to
being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified
or contingent events directly or indirectly related to the business of the Company or the market for the Ordinary Share or (ii)
enters into, or effects a transaction under, any agreement, including, but not limited to, an equity line of credit, whereby the
Company may issue securities at a future determined price; provided, that commencing after the Market Standstill Expiration
Date, the Company may engage in at-the-market offerings through a broker-dealer pursuant to Rule 415 (subject to a floor price
of [$1.65] per share (subject to adjustment for reverse and forward stock splits and the like after the date hereof)); provided
further, that any transaction with a maximum number of shares issuable that is fixed at the time of closing shall not be a
Variable Rate Transaction; and provided further, no registered public offering shall be a Variable Rate Transaction. 
The Company shall provide the Purchasers with prompt written notice, and in no event later than 1 Trading Day after entering into
an at-the-market offering, of such at-the-market offering. Any Purchaser shall be entitled to obtain injunctive relief against
the Company to preclude any such issuance, which remedy shall be in addition to any right to collect damages.

 

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(c)          Notwithstanding
the foregoing, this Section 4.13 shall not apply in respect of an Exempt Issuance, except that no Variable Rate Transaction shall
be an Exempt Issuance.

 

4.14       Equal
Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid
to any Person to amend or consent to a waiver or modification of any provision of the Transaction Documents unless the same consideration
is also offered to all of the parties to such Transaction Documents. For clarification purposes, this provision constitutes a separate
right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to
treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect
to the purchase, disposition or voting of Securities or otherwise.

 

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4.15       Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither
it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including
Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement and ending
at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release
as described in Section 4.4.  Each Purchaser, severally and not jointly with the other
Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company
pursuant to the initial press release as described in Section 4.4, such Purchaser will maintain the confidentiality of the existence
and terms of this transaction and the information included in the Disclosure Schedules.  Notwithstanding
the foregoing, and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and
agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions
in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced
pursuant to the initial press release as described in Section 4.4, (ii) no Purchaser shall be restricted or prohibited from effecting
any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the
transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in
Section 4.4 and (iii) no Purchaser shall have any duty of confidentiality or duty not to trade in the securities of the Company
to the Company or its Subsidiaries after the issuance of the initial press release as described in Section 4.4.  Notwithstanding
the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only
apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the
Securities covered by this Agreement.

 

4.16       Exercise
Procedures. Subject to compliance of the exercising Purchaser with the last sentence of Section 3.2(c) hereto, the form of
Notice of Exercise included in the Warrants set forth the totality of the procedures required of the Purchasers in order to exercise
the Warrants. No additional legal opinion, other information or instructions shall be required of the Purchasers to exercise their
Warrants. Without limiting the preceding sentences, no ink-original Notice of Exercise shall be required, nor shall any medallion
guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required in order to exercise the Warrants.
The Company shall honor exercises of the Warrants and shall deliver Warrant Shares in accordance with the terms, conditions and
time periods set forth in the Transaction Documents.

 

4.17      Shareholder
Approval. The Company shall use its best efforts to obtain Shareholder Approval. The Company agrees effect the changes contemplated
to its Articles of Association by Shareholder Approval on the date Shareholder Approval is obtained.

 

ARTICLE V.

MISCELLANEOUS

 

5.1         Termination. 
This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the First
Closing has not been consummated on or before [__, 2017; provided, however, that no such termination will affect the right of any
party to sue for any breach by any other party (or parties).

 

5.2         Fees
and Expenses. Except as expressly set forth in the Transaction Documents to the contrary and $_______ for the lead Purchaser’s
legal fees and expenses, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if
any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance
of this Agreement. The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day
processing of any instruction letter delivered by the Company and any exercise notice delivered by a Purchaser), stamp taxes and
other taxes and duties levied in connection with the delivery of any Securities to the Purchasers.

 

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5.3         Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, the Preliminary Prospectus and the
Prospectus, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede
all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been
merged into such documents, exhibits and schedules.

 

5.4         Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto
at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth
on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading
Day, (c) the second (2nd)Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight
courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices
and communications shall be as set forth on the signature pages attached hereto. To the extent that any notice provided pursuant
to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries,
the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 6-K.

 

5.5         Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and Purchasers which purchased at least 50.1% in interest of the Shares based on the
initial Subscription Amounts hereunder or, in the case of a waiver, by the party against whom enforcement of any such waived provision
is sought, provided that if any amendment, modification or waiver disproportionately and adversely impacts a Purchaser (or group
of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers) shall also be required. No waiver
of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver
in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall
any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. Any proposed
amendment or waiver that disproportionately, materially and adversely affects the rights and obligations of any Purchaser relative
to the comparable rights and obligations of the other Purchasers shall require the prior written consent of such adversely affected
Purchaser, Any amendment effected in accordance with accordance with this Section 5.5 shall be binding upon each Purchaser and
holder of Securities and the Company.

 

5.6         Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

 

5.7         Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to
whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

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5.8         No
Third-Party Beneficiaries. The Placement Agent shall be the third party beneficiary of the representations and warranties of
the Company in Section 3.1 and the representations and warranties of the Purchasers in Section 3.2. This Agreement is intended
for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor
may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.8 and this Section 5.8.

 

5.9         Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect
to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Action
or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding
is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party shall commence an Action
or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company under
Section 4.8, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action
or Proceeding.

 

5.10       Survival.
The representations and warranties contained herein shall survive the applicable Closings and the delivery of the Securities.

 

5.11       Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

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5.12       Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

5.13       Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser
may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand
or election in whole or in part without prejudice to its future actions and rights; provided, however, that in the case of a rescission
of an exercise of a Warrant, the applicable Purchaser shall be required to return any Ordinary Shares subject to any such rescinded
exercise notice concurrently with the return to such Purchaser of the aggregate exercise price paid to the Company for such shares
(all subject to the limitations under the Israeli Companies Law, 1999 on the repurchase of shares by the issuing company) and the
restoration of such Purchaser’s right to acquire such shares pursuant to such Purchaser’s Warrant (including, issuance
of a replacement warrant certificate evidencing such restored right).

 

5.14       Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or
in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction and in case of loss, theft or destruction, of indemnity reasonably satisfactory
to it. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs
(including customary indemnity) associated with the issuance of such replacement Securities.

 

5.15       Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the
Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

 

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5.16       Payment
Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document
or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or
exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from,
disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person
under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.17       Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any Proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in its review and negotiation of the Transaction Documents. For reasons of administrative convenience only, each
Purchaser and its respective counsel have chosen to communicate with the Company through the legal counsel of the Placement Agent.
The legal counsel of the Placement Agent does not represent any of the Purchasers and only represents the Placement Agent. The
Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company
and not because it was required or requested to do so by any of the Purchasers. It is expressly understood and agreed that each
provision contained in this Agreement and in each other Transaction Document is between the Company and a Purchaser, solely, and
not between the Company and the Purchasers collectively and not between and among the Purchasers.

 

5.18       Liquidated
Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction
Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other
amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages
or other amounts are due and payable shall have been canceled.

 

5.19       Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken
or such right may be exercised on the next succeeding Business Day.

 

    	 	43	 

     

    

 

5.20       Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and Ordinary Shares in any Transaction Document shall be subject to adjustment for reverse and
forward share splits, share dividends, share combinations and other similar transactions of the Ordinary Share that occur after
the date of this Agreement.

 

5.21       WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES
EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY
AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

 

(Signature Pages Follow)

 

    	 	44	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

	Rosetta Genomics Ltd.	 	Address for Notice:
	 	 	 	 
	By:	 	 	Rosetta Genomics Ltd.
	 	Name: Kenneth A. Berlin	 	3711 Market Street, Suite 740
	 	Title: Chief Executive Officer	 	Philadelphia, Pennsylvania 19104
	 	 	 	Attn: Ana Ward, General Counsel
	 	 	 	 
	With a copy to (which shall not constitute notice):	 	 

 

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

44 Montgomery Street, 36th floor

San Francisco, CA 94104

E-mail: REBurwell@mintz.com

Attention: Robert E. Burwell

 

And to:

 

AYR – Amar Reiter Jeanne Shochatovitch & Co. Lawyers

14 Aba Hillel Silver Rd.

Ramat Gan 5250607, Israel

E-mail: NirO@ayr.co.il

Attention: Nir Oren

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    	 	45	 

     

    

 

[PURCHASER SIGNATURE PAGES TO rosg
SECURITIES PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF, the
undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

 

Name of Purchaser: ______________________________________________________

 

Signature of Authorized Signatory of Purchaser:
_________________________________

 

Name of Authorized Signatory: _______________________________________________

 

Title of Authorized Signatory: ________________________________________________

 

Email Address of Authorized Signatory:_________________________________________

 

Facsimile Number of Authorized Signatory: __________________________________________

 

Address for Notice to Purchaser:

 

Address for Delivery of Securities to Purchaser (if not same as
address for notice):

 

DTC Participant name and number: ________________________

 

Contact of DTC Participant: _______________________

 

Telephone Number of Participant Contact: _____________________

 

Subscription Amount:

Cash:

Tendered Debentures:

 

Class A Units: _________________

 

Class B Units:_________________

 

EIN Number: _______________________

 

    	 	46	 

     

    

 

 ̈
Notwithstanding anything contained in this Agreement to the contrary, by checking this box (i) the obligations of the above-signed
to purchase the securities set forth in this Agreement to be purchased from the Company by the above-signed, and the obligations
of the Company to sell such securities to the above-signed, shall be unconditional and all conditions to Closing shall be disregarded,
(ii) the Closing shall occur on the third (3rd) Trading Day following the date of this Agreement and (iii) any condition
to Closing contemplated by this Agreement (but prior to being disregarded by clause (i) above) that required delivery by the Company
or the above-signed of any agreement, instrument, certificate or the like or purchase price (as applicable) shall no longer be
a condition and shall instead be an unconditional obligation of the Company or the above-signed (as applicable) to deliver such
agreement, instrument, certificate or the like or purchase price (as applicable) to such other party on the Closing Date.

 

[SIGNATURE PAGES CONTINUE]

 

    	 	47	 

     

    

 

EXHIBIT C

 

		To:	The National Technological Innovation Authority (“Innovation
Authority”)

 

Relating to projects that
have been financed by or are currently being financed by the Innovation Authority (or have been financed by the Office of the Chief
Scientist of the Ministry of Economy and Industry - hereinafter referred to as the “OCS”) _______________ [Please
specify project title and file number] and to projects of the Company (as this term is defined below) that may be financed by the
Innovation Authority in the future (the “Projects”).

 

Undertaking

 

We, the undersigned,
of                                                                                [Foreign
investor's name] a company, partnership or entity incorporated, organized and existing under the laws of _______________ and
whose registered office is at _________________ (“______”), having, by an agreement dated                        ,
committed to invest in                                                   Ltd.
(the “Company”), in exchange for [number and type of shares] ________ shares of the Company;

 

Recognizing that the Company's research and
development or technological innovation Projects are currently, have been or will be financially supported by the Innovation Authority
or the OCS under and subject to the provisions of The Encouragement of Research, Development and Technological Innovation in the
Industry Law 5744-1984 (the “Innovation Law”) and the, applicable regulations, rules, procedures and benefit
plans;

 

Recognizing that the Innovation Law places
strict constraints on the transfer of know-how and/or production rights, making all such transfers subject to the absolute discretion
of the Innovation Authority's research committee (the “Research Committee”), acting in accordance with the aims
of the Innovation Law and requiring that any such transfer receive the prior written approval of the Research Committee;

 

Hereby declare and undertake:

 

		1.	To observe strictly all the requirements of the Innovation
Law and the provisions of the applicable regulations, rules, procedures and benefit plans, as applied to the Company and as directed
by the Research Committee, in particular those requirements relating to the prohibitions on the transfer of know-how and/or production
rights.

		2.	As a shareholder of the Company, to make all reasonable
efforts that the Company shall observe strictly all the requirements of the Innovation Law and the provisions of the applicable
regulations, rules, procedures and benefit plans, as applied to the Company and as directed by the Research Committee, in particular
those requirements relating to the prohibitions on the transfer of know-how and/or production rights.

 

	 	 	 
	Date	 	
        Name (block letters) and signature of
Authorized Company Representative and Company Seal

 

    	 	48

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